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We met with Purbaya Yudhi Sadewa who is a staff for Coordinating Maritime Minister Luhut Binsar Pandjaitan yesterday and obtain the following key notes:
- The govt has now agreed on a single sea toll concept, where there will be two main international ports in Bitung (North Sulawesi) and Kuala Tanjung (North Sumatra), serving as two main hubs for international access. There will be total seven main ports developed and revamped located around the two main ports, namely Tanjung Priok, Tanjung Perak, Makassar, Bitung, Sorong, on top of Bitung and Kuala Tanjung. Financing for port development, including small ports, comes in various schemes such as through the state budget and cooperation with international investors, from China and Japan.
- Three focuses in maritime development is create Indonesia-centric development, increase of competitiveness, and value added creation. With the third focus, it is emphasised that smelters construction will be continued and not reversed.
- Jokowi's administration is keen to improve ease of doing business, targeting for 50th rank by 2019 (note that Indonesia has improved ranking to 91 from 106 in 2016). Measures implemented have so far resulted in this progress and will be continued going forward. A team under Purbaya's supervision is responsible for debottlenecking process.
- Another priority is to develop tourism in three (out of 10 announced) areas namely Danau Toba, Mandalika, Borbodur. Development includes airport, lodging construction and sites expansion into fully-functioning tourism sites.
Comment: While we think that narrowing down maritime fulcrum focuses itself is a good progress, we believe that such plans will be unlikely to be accomplished by 2019. With chance of Jokowi to be reelected again for the 2nd time, this note should be taken as a medium-term view of development agenda that will impact the economy and the market slowly and gradually, upon realisation.
Sumber : IPS RESEARCH
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