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The Malioboro area of Yogyakarta City is officially designated a No Cigarette Area (KTR), in accordance with Regional KTR Regulation 2/2017. Yogyakarta Deputy Mayor Heroe Poerwadi said that due to the pandemic, inauguration of the Malioboro KTR was delayed until Thursday (11/12), from March. They also provided four designated smoking areas in the Abu Bakar Ali parking area, in front of Malioboro Mall, on the north side of Ramayana, and on the third floor of Beringharjo Market.

Smokers who violate the KTR rules can be subject to sanctions in the form of maximum imprisonment of one month and a maximum fine of Rp7.5 million. Heroe hoped the implementation of KTR at Malioboro could be used as a reference for other tourist attractions implementing KTR.

Head of the Malioboro Task Implementing Unit (UPT), Ekwanto hoped that the number of people who damage the KTR facilities that have been provided will decrease, as many smokers had used the drinking water faucet facilities as cigarette ashtrays. Head of the DIY Tourism Office, Singgih Raharjo, also confirmed that many tourists discard their cigarette butts carelessly. He added that initially, KTR were implemented to accommodate all tourists visiting the Malioboro area, both smokers and non-smokers. But over time, the goal of implementing KTR has grown to help reduce the spread of COVID-19.

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The establishment of the tobacco products industrial park (KIHT) received appreciation from local governments of several regions in Indonesia. The KIHT aims to improve the industrial sector while reducing the number of illegal cigarettes in circulation.

Regional Secretary of Jepara Regency, Edy Sujatmiko, welcomed the KIHT program and hoped it could suppress illegal cigarette production in Jepara. As of October 2, Customs and Excise have carried out 41 enforcement measures in Jepara Regency and confiscated more than 5 million cigarettes with potential state losses of Rp3.4 billion.

Central Java and Yogya Customs and Excise Office Head, Padmoyo Tri Wikanto said that the KIHT was an urgent alternative solution to be established immediately in Jepara. The plan to implement a KIHT in Madura by the East Java I and Madura Customs & Excise also received support from the local governments of four districts throughout Madura. Head of the Madura Customs Office, Yanuar Calliandra, said the planned KIHT must be supported by all parties.

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The COVID-19 pandemic has further reduced the total investment in the oil and gas industry in the country, which has been declining for the last few years. The pandemic has also made the future of investment even more bleak, since there are no indications of when it will end. The uncertainty over the COVID-19 situation has compelled investors to withhold their money and assume a wait-and-see position. The upstream oil and gas regulatory agency SKK Migas revealed that, up until September 2020, total investment in the industry had only reached 63.33% of the total target set by the government. That percentage is equal to US$ 7.03 billion out of the target of US$ 11.1 billion. Previously, SKK Migas expected the total investment to reach US$ 13.83 billion. The agency had to reduce that target, following the faltering international oil prices and emergence of the COVID-19 pandemic. SKK Migas said that there are no plans to revise the present targets at present.

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Perlahan namun pasti, bisnis otomotif di Tanah Air mulai menunjukkan geliat peningkatan setelah dihantam pandemi COVID-19 sejak Maret lalu. Melemahnya daya beli masyarakat dan pengurangan aktivitas pabrik, di antaranya, menjadi faktor yang memengaruhi penjualan kendaraan bermotor saat ini. Kementerian Perindustrian pun berusaha terus mendorong kinerja industri otomotif agar kembali bisa memberi kontribusi signifikan terhadap perekonomian nasional.

Dilansir dari Detik.com (20/9), Menteri Perindustrian Agus Gumiwang Kartasasmita menekankan bahwa pihaknya optimistis kinerja industri otomotif berkembang positif pada semester II tahun ini. Berdasarkan data Gabungan Industri Kendaraan Bermotor Indonesia (Gaikindo), penjualan wholesales (distribusi dari Agen Pemegang Merek (APM) ke dealer) pada Agustus 2020 tercatat 37.277 unit, naik 47% dibandingkan penjualan Juli 2020 yang mencapai 25.283 unit.

Selain pemberlakuan PSBB transisi, tren digital marketing yang diterapkan para APM turut menggenjot peningkatan penjualan otomotif pada paruh kedua tahun ini. Dalam keterangannya di laman Katadata.co.id (7/9), Kepala Divisi Marketing & CR Divisi PT Astra International – Daihatsu, Hendrayadi Lastiyoso mengatakan tren digital marketing terus meningkat sejak pertama kali diterapkan pada Mei 2020. Melalui pemasaran di akun media sosial para sales dan acara virtual showroom, para APM berhasil menjaring calon konsumen dan mendapatkan surat pemesanan kendaraan (SPK).

Para APM juga mulai merambah e-commerce sebagai salah satu jalur pemasaran, seperti PT Krama Yudha Tiga Berlian Motors (KTB) yang meluncurkan Mitsubishi Fuso Official Store di platform marketplace Tokopedia.

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Seperti yang sudah kita ketahui bersama, Pemerintah Provinsi DKI Jakarta kembali memberlakukan PSBB untuk wilayahnya terhitung 14 September 2020. Pengetatan kembali PSBB ini tak pelak diprediksi akan kembali memukul sejumlah sektor perekonomian, termasuk sektor properti,  yang baru saja kembali bergeliat setelah 3 bulan pemberlakuan masa PSBB transisi.

Dikutip dari Kompas.com (13/9), Ketua KADIN Bidang Properti Hendro S Gondokusumo berpendapat jika PSBB kedua dilakukan, sektor properti akan kembali mengalami penurunan hingga 70 persen seperti yang terjadi di masa PSBB pertama. Padahal sektor ini baru saja sedikit mengalami peningkatan 40 persen hingga 50 persen pada masa PSBB transisi.

Tutupnya kegiatan ekonomi sejumlah sektor non-esensial pun berdampak pada menyusutnya penyewaan kantor yang sudah dirasakan para pemilik gedung sejak PSBB pertama pada April lalu. Sejumlah pusat perbelanjaan bahkan mati suri. Geliat ekonomi mulai terlihat pada awal Juli ketika pengunjung mulai berdatangan, meskipun baru sepertiga dari jumlah yang biasa datang di kala tidak ada pandemi.

Kondisi ini pun akhirnya membuat para pebisnis properti memutar otak untuk menyelamatkan bisnisnya. Aneka promosi ditebar untuk memikat konsumen, seperti Sinar mas Land yang memberi diskon 10 persen hingga 25 persen dan bonus Rp50-300 juta, seperti yang dikutip oleh Katadata.co.id (14/9). Meski kondisi pasar melambat, ada beberapa proyek properti yang sukses, salah satunya karena didorong permintaan dan produk yang ditawarkan cocok dengan kalangan menengah.

Di tengah perekonomian yang kian terhimpit, resesi ekonomi jelas akan sangat berpengaruh pada sektor properti.  Senior Associate Director Colliers International Indonesia Ferry Salanto, sebagaimana dikutip dari Okezone.com (25/9), mengatakan jika resesi ekonomi terjadi, industri properti akan semakin sulit untuk bisa bangkit kembali (rebound) ke posisi semula.

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DGCE Director General Heru Pambudi confirmed that the government will announce policies related to the cigarette excise (CHT) tariffs increase in 2021 at the end of September or early October.

Heru refused to provide an overview of the formulation for the increase, however, he did say the increase is usually calculated from the inflation target and projected economic growth for next year. “If next year’s economic growth is 5 percent and inflation is at 3 percent, the CHT rate increase should be above 8 percent. The Fiscal Policy Agency (BKF) will determine it,” he said.

Previously, DGCE Director of Technical and Excise Facilities, Nirwala Dwi Heryanto, stated that the government was also considering the pandemic situation that had reduced cigarette consumption. DGCE data until August 2020 shows that cigarette excise revenue makes up the largest portion of excise revenue, and until August 31, had contributed Rp94.39 trillion representing growth of 6.09 percent.

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Although the Transit Oriented Development (TOD) development concept has been widely adopted as a city development approach by cities of the world, many remain unaware of the TOD concept. Basically put, TOD is a city planning concept that focuses on the optimal use of public transport transit areas.

The concept combines various commercial and residential areas so that they are within comfortable walking distance of transit stops. All residential, office and recreational facilities in TOD areas must be integrated with mass transportation systems such as the BRT, busway, MRT, LRT, and Commuter Rail System, and also have pedestrian and bicycle networks.

It is hoped that once a city has a public transportation network integrated with its residential and commercial areas, many of its residents will switch from using private vehicles to public transportation, and this will bring about a reduction in traffic congestion and air pollution within the city.

In Indonesia, many present-day housing developers are offering housing in TOD areas to match the market demand increasingly influenced by the growing numbers of millennial consumers. The TOD housing concept is considered to appeal to the millennial generation, who tend to be practical, economical, and require an integrated public transportation system to commute to work.

In the TOD residential areas offered by these developers, the residential areas are built as close as possible to public transportation access points so that residents can quickly and easily access public transportation stops on foot. The development of mass transportation networks, including the MRT, LRT, and high-speed train systems, in Indonesia is expected to increase the marketability of TOD housing in the future.

Reflecting on the experiences of other cities such as Hong Kong and Singapore, the use of the TOD concept appears to present an effective solution for any city government wanting to reduce traffic congestion and air pollution to create a healthier city. From a business perspective, urban area developers must be aware of the high market demand for housing projects integrated with mass transportation (TOD) that will only increase in the future, and take advantage of this opportunity to achieve maximum gains.

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Many are wondering what will the future of the liquefied natural gas (LNG) busines in Indonesia be, especially after the government has failed to win an agreement extension with a consortium of buyers from Japan known as Western Buyers Extension (WBX).

Pri Agung Rakhmanto, oil and gas expert from Trisakti University, said that the present state of the LNG business in Indonesia is that it is overwhelmed by an oversupply that has driven LNG prices further down, while LNG producers from other countries have been selling their products at even lower prices, like LNG producers from Australia, Qatar, Malaysia, and the United States. Pri said this situation could continue for the next two or three years.

According to Pri, the future of the LNG business in Indonesia depends on the ability of policy makers in the government to find new buyers in the market. One option the government could take is to make the Indonesian LNG price more competitive is by reducing the LNG proportion for the government. Pri also mentioned that what’s important is to keep LNG projects going in order to trigger a multiplier effect for the economy.

CEO of PT Chandra Asri Petrochemical Tbk. (IDX:TPIA), Prayogo Pangestu, stated that the company plans to start the construction of its joint venture with tire maker Michelin & Cie (ML) in November.

The new plant, which will manufacture synthetic rubber, is slated to start operating in 2016. It will be located in Cilegon, Banten.

According to Pangestu, the whole plan will involve two stages: First stage requires $500 million investment in setting up the plant and procuring the raw materials. The second stage also requires a $500 million investment to manufacture automotive tires.

Continue reading “Chandra Asri and Michelin’s JV rubber plant to start construction in November”

Indonesian bank, Bank Central Asia (IDX:BBCA) says it is initiating a local credit card network that it plans to start operating early next year. BBCA CEO Jahja Setiaatmadja said that the company will be working with other banks yet to be named to roll out the new network.

BBCA already runs the BCA Card that can be used only within its network. It is already widely accepted within Indonesia, but has very limited use outside the country. The new network, since it will involve other banks, will not be branded BBCA. The company has not indicated what the brand name will be.

BCA’s rival Bank Mandiri (IDX:BMRI) has also stated that it is similarly planning to start a local processing network. BMRI’s CEO Budi Gunadi Sadikin has indicated that it is exploring the possibility of working with other banks to start such network.

Indonesia’s credit card market is worth about Rp180 trillion annually (approx. US$16 bio). According to Bank Indonesia’s Deputy Governor Ronald Waas, 90% of the transactions do not involve any foreign party, so it makes sense to operate a local payment network.