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Nusantara Smart City as Indonesia's Big Strategy for Digitalization

The Indonesian government is actively working on developing Nusantara, the new capital city, as part of its strategy to achieve the 2045 Golden Indonesia vision. This vision, spanning from 2015 to 2085, prioritizes human resource development and positions Indonesia as a global economic indicator. The 2045 vision focuses on human development, technological mastery, and sustainable economic growth, aligning with global trends like rapid technological advancement and the demand for digital talent.

Indonesia faces a digital talent gap, estimated at nine million by 2035, with only 200 thousand to 400 thousand talents produced annually. This mismatch affects the IT sector's growth and hampers businesses' ability to find skilled local resources. Digital nomads further complicate this challenge, highlighting the need for strategies like smart cities to address evolving industry needs and talent requirements.

Nusantara's smart city concept emphasizes preparing international-quality digital talents through technology-driven industry and workforce development. This initiative aims to bridge the gap between education and industry demands, benefiting not just Nusantara but potentially attracting businesses from other regions and globally. Additionally, the focus on digitizing micro, small, and medium enterprises (MSMEs) aligns with global shifts towards online commerce and digital platforms for business growth.

The multi-utility tunnel (MUT) technology, integrated into Nusantara's smart city infrastructure, exemplifies Indonesia's innovative approach to smart city development. This technology not only accommodates various utility networks but also supports internet connectivity and efficient monitoring systems. Overall, Nusantara's smart city development is part of Indonesia's strategy to excel in the digital sector, aligning with its long-term vision of global economic leadership and human resource excellence.

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Indonesia, Vietnam Explore Agriculture, Aquaculture Cooperation

 Indonesia explores agricultural and aquaculture cooperation with Vietnam to solidify their positions in Southeast Asia, according to Minister of Cooperatives and Small and Medium Enterprises (SMEs), Teten Masduki.

During a meeting with the chairperson of the People's Committee of Vietnam's Dak Lak province, Hyim Kdoh, on Friday, Masduki said that the two countries have an important role in the agricultural and aquaculture sectors in the region.

He said that Indonesia and Vietnam will explore the potential for cooperation in agriculture and aquaculture business modernization through digitalization, as well as research and development to improve the quality and competitiveness of agricultural and fishery products in the global market.

The two countries will also collaborate in the development of business models and partnerships in fisheries and agricultural supply chains in the region.

Masduki also said that several commodities are being developed in Indonesia, such as seaweed, shrimp, eel, palm oil, coconut, red ginger, rice, fruits, bamboo, and rattan. Vietnam is focusing on developing barramundi fish, shrimp, and lobster.

Agricultural commodities such as durian, mango, and jackfruit are widely grown in Indonesia; thus, there are promising cooperation opportunities for Indonesia and Vietnam, he said.

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Some Infrastructure Projects Ready to be Launched in 2024: Minister

Jakarta (ANTARA) - Transportation Minister Budi Karya Sumadi revealed that several infrastructure projects are ready to be inaugurated this year to support smooth domestic transportation. There are 21 projects that will be inaugurated in 2024 that include the construction of six ports for crossing ship and one for motor ship, another eight ports, five airports, and a double railway track.

Sumadi spoke about the transportation projects during a working meeting with the House of Representatives (DPR) in Jakarta on Tuesday (April 2). He stated that the presence of transportation infrastructure is expected to have a positive impact on the community in increasing mobility and connectivity between regions, so that it can increase overall economic growth.

He said that the ministry is committed to boosting the development of transportation infrastructure through its policy and budget priorities in 2024. This commitment is realized through developing productive connectivity infrastructure, improving safety and security and human resources of the transportation sector, and conducting equitable distribution of national development.

It also focuses on implementing pro-people programs, the sustainable Multi-Year Contract (MYC) program, the national fulfillment, national strategic projects (PSN), planning and development of the Nusantara Capital City, urban mass transportation, as well as encouraging the use of new and renewable energy.

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Indonesia's Financial System Stays Strong Amid Global Uncertainties

Amid global uncertainties, the United States' inflation rate declined, albeit still far from the preferred two percent rate, exacerbating doubts and uncertainty over the reduction in the Fed Funds Rate (FFR). The FFR, or the rate at which depository institutions lend money to one another, that is currently high, in the range of 5.25-5.50 percent, is forecast to last at least until the first half of this year. Geopolitical tensions globally remain unresolved, adding another layer of uncertainty to economic forecasts and financial markets.

China's economic growth had yet to reach the expected level on account of a property crisis and weakening consumption power. This trend will also contribute to the slowing down of the global economy and threaten the stability of the global financial system. Notably, China's GDP growth rate in 2023 was below target at 5.6%, reflecting the challenges faced by its economy. This has led to concerns among investors and policymakers about the broader implications for global economic performance.

Amid global uncertainties, Indonesia's financial system remains resilient and stable. This financial resilience is reflected in several aspects, including adequate liquidity, decreasing credit risks, potent capital, and a sound level of corporate resilience. Indonesia's banking sector, for instance, reported a non-performing loan (NPL) ratio of just 2.19 percent as of December 2023, marking a significant decline from the previous year. These indicators point to the effectiveness of Indonesia's financial policies in managing risk and maintaining stability.

In 2023, Indonesia's economy stood strong despite facing threats posed by global economic slowdown and rising global inflationary pressure, as evidenced by the country's success in achieving an economic growth rate of 5.05 percent. This feat was a result of the intensification of government spending at the end of the year as well as the acceleration of the development of several national strategic projects. Additionally, Indonesia's debt-to-GDP ratio remained manageable at 41.8% in 2023, reflecting prudent fiscal management amidst challenging economic conditions.

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Government Announces 14 New National Strategic Projects

The Indonesian Government has determined 14 new national strategic projects (PSNs) in a range of sectors in a bid to actualize equitable development in the country.

Spokesperson of the Economic Affairs Coordinating Ministry Haryo Limanseto noted that the 14 projects are of enormous investment value and will bring about far-reaching economic impacts through the sectors of transportation, infrastructure, energy, health, and telecommunication. 

He also stated that the PSNs encompass not only physical infrastructure, as the projects are also meant to ensure an equitable economy, ample food stocks, as well as developments in border regions, technology, tourism, and education. He underlined that the development of the 14 new PSNs is fully funded by capital invested by private actors. The official also noted that the government had initially coordinated with relevant stakeholders and conducted thorough studies before determining the new PSNs.

According to Limanseto, the 14 newly announced projects are scattered in several provinces, namely Riau Islands, Banten, Jakarta, West Java, East Java, East Kalimantan, Central Sulawesi, and Southeast Sulawesi. In detail, the projects involve eight industrial zones; two tourism zones; two toll roads; one educational, research, technology and health zone; and one offshore oil and gas project.

Among the 14 projects is the development of an area of 1,756 hectares of land envisioned as a green tourism destination called Tropical Coastland in Pantai Indah Kapuk 2 area in Banten Province. The tourism project is worth Rp65 trillion (US$4.1 billion) of investment and is projected to absorb almost 20,000 workers.

Another newly announced PSN is the development of a special economic zone (SEZ) on 59.6 hectares of land situated within Bumi Serpong Damai (BSD) satellite city in the same province. The project is expected to draw investment worth Rp18.54 trillion (US$1.1 billion). The planned SEZ, expected to empower 10,000 workers, is designed as a center for education, medical research, digital economy, technological developments, and healthcare.

In terms of healthcare, the zone will drive developments in medical and biomedical services forecast to generate Rp5.6 trillion (US$350 million) of foreign exchange.

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Apple, Microsoft Keen to Invest in Indonesia: Deputy Minister

Tech giants Microsoft and Apple have expressed their interest in investing in Indonesia, according to Deputy Minister of Communications and Informatics Nezar Patria. He stated at a public discussion that they have informed him by letter and expressed their intention to invest in Indonesia as well. Satya Nadella of Microsoft and Tim Cook of Apple, CEOs of the two tech giants, seek to meet President Joko Widodo during their visit to Indonesia, he remarked.

The authority seeks to focus the collaboration on the development of human resources and manufacturing sectors, he noted. Investments from the two tech giants in Indonesia will also open up greater opportunities for the country and the people, Patria added. The deputy minister expressed hope that collaboration with the two tech giants would bolster Indonesia's efforts to develop its digital talent capacity and competency.

On Thursday (March 21), Minister of Communication and Informatics Budi Arie Setiadi stated that his side is preparing to meet representatives of tech giants Microsoft and Apple to accelerate Indonesia's digital transformation. Microsoft (representative) will visit in mid-April, while Apple CEO Tim Cook will visit on April 20. He intends to establish the Apple Academy, which we will observe and study during his visit as Setiadi remarked.

The minister said his side plans to discuss the development of digital talents and artificial intelligence (AI) technology in Indonesia with Microsoft. Meanwhile, the ministry seeks to focus the discussion with Apple on professional digital talent development.

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ASEAN for Business Mar 2024: A Business-Friendly ASEAN Guide for AI Ethics and Governance

ASEAN recently endorsed a business-friendly ASEAN Guide for Artificial Intelligence (AI) Ethics and Governance that is crucial for the region's technological development and allows companies to confidently invest in AI while ensuring responsible development.

Access the full publication here.

The Guide is nominated for the United Nations (UN) World Summit on the Information Society (WSIS) Prizes 2024. The WSIS Prize is an international award to recognise projects and activities by individuals, governments, private sector, academia, international and regional organisations, and civil society for their success in implementing projects and activities that leverage the power of ICT to advance sustainable development. 

Vote the Guide to win the prize at this link.

Brunei ranks third in personal finance interest

Brunei Darussalam is third in Southeast Asia in the interest of personal finance management, with a significant indicator of 3.1 per cent, according to an analysis by UnaFinancial.

The study examined search requests related to personal finance management in 11 Southeast Asian countries over the past year.

The indicator of interest was calculated as a ratio of search requests to the average population over the previous 12 months.

Singapore leads Southeast Asia in interest in personal finance management, with a significant indicator of 9.8 per cent, followed by Thailand with 6.7 per cent.

“Singapore’s performance is driven by a rising income per capita and a growing number of wealthy people, who are interested in investment tools,” the experts noted.

The report said, “All three countries are characterised with a growing supply of investment tools, high levels of accumulated wealth and a large share of millennials and Gen Z (54 per cent), who are looking for financial management tools.”

Meanwhile, Thailand’s interest in currency depreciation also prompted residents to explore wealth preservation options.  Source: Borneo Bulletin

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Brunei continues to develop oil and gas industry, says minister

Brunei has never wavered in its commitment to developing the oil and gas industry, said Minister at the Prime Minister’s Office and Minister of Finance and Economy II Yang Berhormat Dato Seri Setia Dr Awang Haji Mohd Amin Liew bin Abdullah during the 20th session of the Legislative Council (LegCo) meeting.

Oil and gas companies will continue to review their costs of operation and introduce new technologies to enhance performance, he added.

Queries on how the Sultanate can benefit from free trade agreements (FTA) and whether businesses are prepared for the FTA were raised by Yang Berhormat Haji Salleh Bostaman, to which the minister said, “It depends on the company’s development. With the FTA, we have managed to penetrate markets such as Mexico and Chile, to export fertiliser.”

However, micro, small and medium enterprises (MSMEs) have yet to fully utilise these FTAs, he added.

He assured that “once our MSMEs are ready, they can export their products. These FTAs are here to stay”.

On the 11th National Development Plan, Yang Berhormat Dato Seri Setia Dr Awang Haji Mohd Amin Liew said the progress was affected by the COVID-19 pandemic, with many private companies unable to carry out their projects due to foreign companies, workers and goods not being allowed to enter the country during the period.

“Many government projects could not be carried out. But the authorities held meetings with all ministries on development projects to seek ways to speed up the process. Meanwhile, for the 12th National Development Plan, steps have already been put forward to speed up the process,” the minister said.

On increasing national revenue through tax collection to reduce budget deficit, the minister said there are only corporate and withholding taxes.

“Some taxes practised in other countries are not available here. Before we introduce other taxes in the country, we should think of the implications especially for low income earners.

“These taxes are reviewed from time to time and we try to get feedback from the private sector and members of the public,” he added. 

Source: Borneo Bulletin

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More than 92pc ‘connected’

Initiatives furthering the modernisation and expansion of the country’s telecommunications network infrastructure since September 2019 saw more than 92 per cent of the Sultanate’s populated areas fiberised, said Unified National Networks Sdn Bhd (UNN) in a statement.

The fibre optic technology is now the mainstay of Brunei’s national backhaul network comprising more than 6,000 kilometres. Recent additions from 2023-2024 include Sungai Teraban, Kuala Balai, Labi, Kampong Ayer Bolkiah A and B, Merangking, Menunggol, Bukit, Long Mayan and Teraja, while, Pemadang, Ra’an, Rambai and Merimbun are expected to be completed by April.

In July 2022, collaborative efforts from Datastream Digital (DST), imagine Sdn Bhd, Progresif Sdn Bhd and UNN kickstarted the copper-to-fibre migration programme which targeted customers connected by copper to mitigate them toward fibre optics.

Source: Borneo Bulletin

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‘MSMEs backbone of economy’

Micro, Small and Medium Enterprises (MSMEs) form the backbone of the economy, with 97 per cent of some 6,570 active enterprises classified as MSMEs, said Deputy Minister of Finance and Economy (Economy) Dato Seri Paduka Haji Khairuddin bin Haji Abdul Hamid yesterday.

“These MSMEs serve as a significant contributor to job creation in Brunei Darussalam, accounting for over 60 per cent of the total employment in the private sector and contribute to approximately 40 per cent of our nation’s gross domestic product, highlighting their importance in fostering economic resilience and sustainability,” said the deputy minister during the second ‘Enterprise Growth Connect: A Forum and Networking Event’ (EGC) at Tarindak D’Seni.

The deputy minister, also the Co-Deputy Chairperson of the Brunei Economic Development Board (BEDB) and Darussalam Enterprise (DARe) said because of MSMEs contribution to economic development, it is the responsibility of stakeholders and advocates of the entrepreneurial community to ensure MSMEs have access to the skills and resources for their growth and sustainability.

He added the government is actively supporting the growth and development of MSMEs through DARe, and introduced policies and initiatives to make the country’s environment more conducive and business friendly.

“These include facilitating access to financing, providing comprehensive training and development programmes, offering incubation facilities, enhancing infrastructure and facilitating international market access,” he said.

“MSMEs are also instrumental in promoting inclusive growth and reducing income inequality by providing opportunities for skills development and grassroots entrepreneurship. By integrating small businesses into the value chains of larger corporations, we create symbiotic relationships that yield mutual benefits for both parties.”

Such integration will open doors to new markets, resources and expertise as well as fostering MSME growth and competitiveness while larger corporations stand to diversify supply chains, access innovative solutions and enhance social impact by supporting the growth of smaller businesses. The deputy minister said the EGC serves as an invaluable platform to forge meaningful connections, exchange ideas and explore potential synergies.

Source: Borneo Bulletin

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Australia to create $1.3 bln fund to invest in Southeast Asian projects

Australia said on Tuesday it would set up a A$2 billion ($1.3 billion) finance facility to boost trade and investment in Southeast Asia as it looks to deepen ties in a region where many are also searching for ways to live with a more assertive China.
The fund will focus on clean energy and infrastructure and provide loans, guarantees, equity and insurance. Australia will also tip in an extra A$140 million to extend an existing programme which advises the region on infrastructure projects.
Prime Minister Anthony Albanese announced the fund, which was recommended last year by Australia's envoy to the region, in a speech on Tuesday to business leaders at the Association of Southeast Asian Countries (ASEAN) summit in Melbourne.
"Australia and Southeast Asia must together face this moment with a sense of optimism and urgency," he said. "Because while there is so much untapped potential, there is not unlimited time. We must act together, and we must act now."
Two-way trade between Australia and ASEAN states passed $178 billion in 2022, greater than Japan or the United States, Albanese said.
Australia is hosting the ASEAN summit, which marks the 50th anniversary of its ties to the bloc, amid growing recognition in Canberra that the region needs to be cultivated at a time when China's increasing assertiveness is reshaping the Indo-Pacific.
Stances on China across the 10-member bloc range from wary to warm. Philippine Prime Minister Ferdinand Marco Jr. told an audience in Melbourne on Monday that his country would grow its security ties with the US and resist when China ignores its maritime rights in the South China Sea.
However, at a joint press conference with Albanese hours earlier, Malaysian Prime Minister Anwar Ibrahim criticised growing "China-phobia" in the west.
Asked by reporters about China's push to join regional trade group the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Albanese and Singaporean Prime Minister Lee Hsien Loong said any decision would be by consensus.
Beijing has long sought to join the 12- member CPTPP, which includes Singapore, the U.K. and Japan, but faces opposition from some members including Australia over its coercive trade policies.
($1 = 1.5363 Australian dollars)

Source : REUTERS

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