Third Economic Policy Package to Focus on Real Economy

 
Marcell Sihombing, ANT
 

Minister of Energy and Mineral Resources Sudirman Said (left). Photo by: RES


Continuing the economic policy package program established by President Joko Widodo in a bid to stabilize the domestic economy in the wake of the global economic slowdown, the government issued its third economic policy package on Wednesday, 7 October 2015. This third package focuses on sectors that it is hoped will directly affect the real economy and businesses, and sets new prices for several types of fuel, which came into effect on 1 October 2015.
 
Secretary of the Cabinet, Pramono Anung, asserted that the government is aiming to achieve structural reforms and greater bureaucratic efficiency through the issuance of this third economic policy package.
 
At a press conference held on the day of the policy-package launch, Indonesia’s Minister of Energy and Mineral Resources (ESDM), Sudirman Said, announced that the price of diesel fuel had been lowered from IDR 6,900 to IDR 6,700 per liter, and that the price drop would come into effect three days after the announcement. The three-day time window was decided upon so that the necessary logistical preparations relating to the price reduction could be carried out.
 
Several government officials were present at the press conference, including the Coordinating Minister for Economic Affairs, Darmin Nasution, the Head of the Financial Services Authority’s Board of Commissioners, Muliaman D. Hadad, and Bank Indonesia’s Senior Deputy Governor, Mirza Adityaswara.
 
The price of Premium gasoline, however, remains unchanged at IDR 7,400 per liter in Java, Madura and Bali, and IDR 7,300 outside these regions. Meanwhile, the price of aviation fuel has been cut by 5.33 percent for the international market and by 1.4 percent for the domestic market.
 
“After all, Pertamina must cover all of Indonesia’s airports, including pioneer airports, while international businesses only focus on the country’s more major airports. This is the reason why Pertamina has granted a bigger discount to international businesses, while the domestic market has only received a relatively small 1.4 percent price reduction,” asserted Minister Said.
 
On 1 October 2015, the price of 12 kg of liquid petroleum gas (LPG) was cut from IDR 141,000 to IDR 134,000, while the price of Pertamax gasoline at the pumps dropped from IDR 9,250 to IDR 9,000 per liter.
 
“Pertamina has even reduced the price of Pertalite gasoline, which is still being marketed under its promotional price, from IDR 8,400 to IDR 8,300 per liter, a 1.2 percent reduction,” stated Minister Said.
 
According to Minister Said, the above prices will remain open to further adjustments if, for instance, the Indonesian Crude Price (ICP) stabilizes. Minister Said has pledged to maintain the government’s fuel-subsidy policy, however.
 
Ferry Mursyidan Baldan, the country’s Minister of Agrarian and Spatial Affairs and Head of the National Land Agency (ATR/BPN) was also present at the press conference and announced the policies that his institution would be implementing under the new stimulus package. Minister Baldan revealed that his institution would be simplifying the land utilization licensing process for investment purposes, and that this was laid out in the President’s third policy package.

This simplification is part of the revision of Ministerial Regulation No. 2 0f 2015 on Standards of Service and Management of Agrarian, Spatial, and Land Affairs for Investment Purposes. The simplification will encompass license applications, requirements, and extensions.
 
By way of example, Minister Baldan revealed that investors who used the One-Stop Integrated Services facility in order to request land availability information would now receive the results in a mere three hours, compared to the previous seven-day processing time.

Furthermore, after a license application has been filed relating to a particular area of land, the land in question will be marked and locked for 14 working days, meaning that no other investors will be able to access it. If the applicant in question fails to comply with all of the requirements pertaining to the licensing process, then the lock will be revoked and other investors will then be able to access the land in question once again.
 
Aside from land information, the new deregulation package also includes a reduction in the Cultivation Rights (Hak Guna Usaha – HGU) processing timeframe, from around 30-90 working days to a mere 20 working days for land plots of up to 200 hectares, and 45 working days for plots larger than 200 hectares in size. Extending or renewing HGU certification has also been reduced from around 20-50 working days to just seven working days for plots of up to 200 hectares, and 14 working days for plots of over 200 hectares.
 
The processing time for Building Rights (Hak Guna Bangunan – HGB) for a particular plot of land has also been reduced from around 20-50 working days to 20 working days for up to 15 hectares of land, and 30 working days for more than 15 hectares of land.

Extending or renewing HGB and Right of Use (Hak Pakai) certification has also been reduced from around 20-50 working days to just five working days for up to 15 hectares of land, and seven working days for more than 15 hectares of land.

The timeframe for processing Land Rights (Hak atas Tanah) has also been reduced to one working day from the previous five working days, while settlements or complaints will now be dealt with in just two working days, down from the previous five working days.
 
Minister Baldan also asserted that the requirements for extending land rights involving the evaluation of land utilization and management, as well as a land-area audit to be performed by the applicant in question, were now different for new applications.
 
“The extensions process is now different for new applications. We just need to review whether there will be changes to the documents or not, but in essence it will take just seven days for up to 200 hectares of land and 14 days for more than 200 hectares of land,” concluded Minister Baldan.
 
(sp)
 
Marcell Sihombing, ANT
 

Minister of Energy and Mineral Resources Sudirman Said (left). Photo by: RES


Continuing the economic policy package program established by President Joko Widodo in a bid to stabilize the domestic economy in the wake of the global economic slowdown, the government issued its third economic policy package on Wednesday, 7 October 2015. This third package focuses on sectors that it is hoped will directly affect the real economy and businesses, and sets new prices for several types of fuel, which came into effect on 1 October 2015.
 
Secretary of the Cabinet, Pramono Anung, asserted that the government is aiming to achieve structural reforms and greater bureaucratic efficiency through the issuance of this third economic policy package.
 
At a press conference held on the day of the policy-package launch, Indonesia’s Minister of Energy and Mineral Resources (ESDM), Sudirman Said, announced that the price of diesel fuel had been lowered from IDR 6,900 to IDR 6,700 per liter, and that the price drop would come into effect three days after the announcement. The three-day time window was decided upon so that the necessary logistical preparations relating to the price reduction could be carried out.
 
Several government officials were present at the press conference, including the Coordinating Minister for Economic Affairs, Darmin Nasution, the Head of the Financial Services Authority’s Board of Commissioners, Muliaman D. Hadad, and Bank Indonesia’s Senior Deputy Governor, Mirza Adityaswara.
 
The price of Premium gasoline, however, remains unchanged at IDR 7,400 per liter in Java, Madura and Bali, and IDR 7,300 outside these regions. Meanwhile, the price of aviation fuel has been cut by 5.33 percent for the international market and by 1.4 percent for the domestic market.
 
“After all, Pertamina must cover all of Indonesia’s airports, including pioneer airports, while international businesses only focus on the country’s more major airports. This is the reason why Pertamina has granted a bigger discount to international businesses, while the domestic market has only received a relatively small 1.4 percent price reduction,” asserted Minister Said.
 
On 1 October 2015, the price of 12 kg of liquid petroleum gas (LPG) was cut from IDR 141,000 to IDR 134,000, while the price of Pertamax gasoline at the pumps dropped from IDR 9,250 to IDR 9,000 per liter.
 
“Pertamina has even reduced the price of Pertalite gasoline, which is still being marketed under its promotional price, from IDR 8,400 to IDR 8,300 per liter, a 1.2 percent reduction,” stated Minister Said.
 
According to Minister Said, the above prices will remain open to further adjustments if, for instance, the Indonesian Crude Price (ICP) stabilizes. Minister Said has pledged to maintain the government’s fuel-subsidy policy, however.
 
Ferry Mursyidan Baldan, the country’s Minister of Agrarian and Spatial Affairs and Head of the National Land Agency (ATR/BPN) was also present at the press conference and announced the policies that his institution would be implementing under the new stimulus package. Minister Baldan revealed that his institution would be simplifying the land utilization licensing process for investment purposes, and that this was laid out in the President’s third policy package.

This simplification is part of the revision of Ministerial Regulation No. 2 0f 2015 on Standards of Service and Management of Agrarian, Spatial, and Land Affairs for Investment Purposes. The simplification will encompass license applications, requirements, and extensions.
 
By way of example, Minister Baldan revealed that investors who used the One-Stop Integrated Services facility in order to request land availability information would now receive the results in a mere three hours, compared to the previous seven-day processing time.

Furthermore, after a license application has been filed relating to a particular area of land, the land in question will be marked and locked for 14 working days, meaning that no other investors will be able to access it. If the applicant in question fails to comply with all of the requirements pertaining to the licensing process, then the lock will be revoked and other investors will then be able to access the land in question once again.
 
Aside from land information, the new deregulation package also includes a reduction in the Cultivation Rights (Hak Guna Usaha – HGU) processing timeframe, from around 30-90 working days to a mere 20 working days for land plots of up to 200 hectares, and 45 working days for plots larger than 200 hectares in size. Extending or renewing HGU certification has also been reduced from around 20-50 working days to just seven working days for plots of up to 200 hectares, and 14 working days for plots of over 200 hectares.
 
The processing time for Building Rights (Hak Guna Bangunan – HGB) for a particular plot of land has also been reduced from around 20-50 working days to 20 working days for up to 15 hectares of land, and 30 working days for more than 15 hectares of land.

Extending or renewing HGB and Right of Use (Hak Pakai) certification has also been reduced from around 20-50 working days to just five working days for up to 15 hectares of land, and seven working days for more than 15 hectares of land.

The timeframe for processing Land Rights (Hak atas Tanah) has also been reduced to one working day from the previous five working days, while settlements or complaints will now be dealt with in just two working days, down from the previous five working days.
 
Minister Baldan also asserted that the requirements for extending land rights involving the evaluation of land utilization and management, as well as a land-area audit to be performed by the applicant in question, were now different for new applications.
 
“The extensions process is now different for new applications. We just need to review whether there will be changes to the documents or not, but in essence it will take just seven days for up to 200 hectares of land and 14 days for more than 200 hectares of land,” concluded Minister Baldan.
 
(sp)
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