politics
Dissecting the pulse of the nation’s politics, where power plays and policies collide in a fight for the future.
PDI-P confirms support, offers mitigating steps against impacts of VAT rate hike
Chairman of the Budget Committee (Banggar) of the House of Representatives (DPR), Said Abdullah, announced the Indonesia Democratic Party of Struggle’s (PDI-P) support for the government’s plan to increase Value Added Tax (VAT) rate to 12 percent starting January 2025.
Political parties wrangle about government’s planned VAT increase
Controversy over the planned increase in the Value Added Tax (VAT) rate from 11 percent to 12 percent which will take effect starting January 1, 2025 heightens, with political parties blaming each other for differences in position towards the government’s policy
Government told to favor community-based power plant development
In a condition where global funding and the government have more focus on large-scale power plants, community-based small-scale power plants have the potential to provide electricity for people in remote and underdeveloped regions, a study has revealed.
Pyridam Farma books records sales of Rp1.16 trillion year on year
PT Pyridam Farma (PYFA) has reported its booked sales of Rp1.16 trillion (US$73.5 million) year on year this year, an increase of 123 percent from Rp520.47 billion in the same period last year.
SKK Migas warns contractors of untapped work areas potential
The Upstream Oil and Gas Regulatory Task Force (SKK Migas) on Friday, November 1, 2024, reassembled CEOs of oil and gas contractors (KKKS) for input sharing on products inventory and measures to increase volume of production.
Regulator, user, contractor discuss Abadi LNG Project development in Masela Block
The Upstream Oil and Gas Regulatory Task Force (SKK Migas) and Oil&Gas Contractor INPEX Masela, LTD., a subsidiary of INPEX Corporation (INPEX), met along with the Maluku Provincial Administration on Wednesday, October 30, 2024, to discuss measures to develop the Abadi Gas Field Project in Masela Block.
Seskoau holds seminar on utilization of AI in defense affairs
The Indonesian Air Force Staff and Command School (Seskoau) held a seminar on the utilization of Artificial Intelligence (AI) in defense sector for the 61st batch of Student Officers at the Graha Widya Dirgantara Building in Bandung on Thursday, October 31, 2024.
Environment ministry targets coal-using industries to combat air pollution
The Ministry of Environment and Forestry (KLH) is set to regulate industries in the Jabodetabek area that continue to use coal-fired boilers for electricity production.
Indonesia seeks foreign investment to boost labor-intensive industries
Coordinating Minister for the Economy, Airlangga Hartarto, has announced plans to attract foreign investors to revitalize labor-intensive industries in Indonesia, aimed at capitalizing on opportunities from investors looking to relocate their operations here.
Samator Indo Gas reports steady sales growth amid profit decline
PT Samator Indo Gas (AGII) has booked a profit decrease of Rp29.09 billion (US$1.8 milllion) for the period of January to September 2024, as published in the company’s report on the Indonesia Stock Exchange (IDX) on Monday, September 30, 2024.
Power transfer: Lessons learned, optimism on new President
A national survey through Computer-Assisted Self Interviewing (CASI) system, held on September 19-23, 2024, showed a decline in approval rating of outgoing President Joko “Jokowi” Widodo, but exhibited optimistic views on the new State leadership under elected President Prabowo Subianto.
Freeport permit extension,more shares divestment to be executed next year
Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has hinted that the government plans to grant the special mining business (IUPK) extension to PT Freeport Indonesia and acquire the additional 10 percent divestment share from the mining company early next year.“In shaa Allah [God Willing], the target to secure additional 10 percent shares and grant the permit extension can be completed next year. It depends on the results of Freeport’s communication with us,” Bahlil said on Thursday, October 31, 2024.He cited that he is currently waiting for results of the final negotiation with Freeport after a delay due to a minor fire incidents at its factory.“One their team is settled with the incident, we will start the talking again,” he said.Then President Joko Widodo has signed a government regulation that will allow PT Freeport Indonesia to submit for an extension of their Special Mining Permit (IUPK) after 2041. In exchange of the extension, Freeport MacMoran will divest 10 percent of its share to the Indonesian government.The government issued in May 2024 Government Regulation No. 25/2024, which is a revision to Government Regulation No. 96/2021 on the Implementation of Mineral and Coal Mining Activities.The revised regulation has articles 195A and 195B to complement the previous regulation. It opens up the opportunity for Freeport to apply for a license extension no later than one year before the end of the period of Production Operation activities.Bahlil said the permit extension will be good for Indonesia because currently 50 percent of the company shares already belong to Indonesian government. While the rest of the shares are owned by Freeport McMoran.PTFI signed the Contract of Work (CoW) in 1976 for 30 years and should have ended in 1997. Before the contract expired, PTFI discovered a bigger gold reserve at Grasberg mine. The company then submitted a second contract extension in 1991. The second contract has a clausal on divestment of 51 percent of the company’s shares to the Indonesian government.After a long negotiation, in 2018, Freeport-McMoRan announced that it divested its ownership in PTFI so that Indonesia could own 51 percent shares of the company. In return, the CoW was replaced by a Special Mining Business License (IUPK) with the mining rights to 2041 and that Freeport will build a new smelter.President’s U.S. visitBahlil said that as a technical minister on energy and mineral resources, he has the job to provide data on energy and mining issues for the President in his upcoming international trips in early November, including to the US.However, he said, he did not know wether the president will talk about Freeport issue with the U.S. government or not.