Cyber Security, Covid Deaths Rising, Luxury Car Pertalite Ban, Non-Tax State Revenue Grows
Aug 05, 2022
OJK Tells Banks to Ensure Cyber Security
In a move to bolster the cyber security of banks, the Financial Services Authority (OJK) has issued Financial Services Authority Regulation 11/POJK.03/2022 on Information Technology Implementation by Commercial Banks (POJK PTI). OJK Deputy Commissioner for Banking Supervision I Tegus Supangkat said that given massive digitization developments in the banking industry, which increases the risk of cyberattacks, financial institutions need to have the organizational readiness to balance technological sophistication with security.
POJK 11/POJK.03/2022 regulates aspects such as banking information technology governance, architecture, risk management, resilience and cybersecurity, use of information technology service providers, and personal data protection.
Banking Supervisory Chief Executive Dian Rae said POJK PTI accommodates all pillars in the blueprint for digital banking transformation to strengthen the role of the board of directors, board of commissioners, and all other parties involved in IT implementation in banks. This new regulation is expected to allow banks to move more quickly in offering digital banking products and services while still maintaining proper risk mitigation standards.
Indonesia saw 24 Covid-19 deaths on August 2, an 85 percent increase on the previous week. The number of new daily Covid-19 cases has also been over 6,000 for the past few days, said Spokesperson of the Covid-19 Task Force Wiku Adisasmito, increasing 15 times over the past two months. The number of active cases is 38,000, compared to only 2,000 in early June.
Epidemiologist from Griffith University Dicky Budiman said this was due to the lack of early detection, causing vulnerable groups to suffer severe symptoms. Despite the increasing number of cases and deaths, Wiku said the impact of Omicron BA.4 and BA.5 is not as severe as other countries have experienced, but reminded the public to remain vigilant.
Fuel Subsidy Continues to Swell, Pertalite Ban for Luxury Cars
As the government continues efforts to reduce fuel subsidies that reached Rp 502 trillion this year, starting September cars with engines larger than 2,000 cc will be restricted from using Pertalite subsidized fuel. A ban on cars over 1,500 cc using Pertalite is still being considered. Corporate Secretary of Pertamina Patra Ginting said this policy awaits the revision of Presidential Regulation (Perpres) 191/2014 concerning the Provision, Distribution, and Retail Selling Price of Fuel Oil.
The weakening global economy due to the Covid-19 pandemic and the Ukraine-Russia war has led to an increase of global energy prices, which has put pressure on Indonesia’s domestic fuel subsidies. The government still caps subsidized fuel, particularly Pertalite, at Rp 7,000 per liter, whereas in other countries the fuel price has reached Rp 32,000 per liter. However, the state budget and fiscal system are not always capable of bearing the cost of subsidies.
Grand Hyatt Jakarta is making important strides to promote sustainability as a commitment to the culture of care toward guests and the environment through the reduction of chemical waste and its carbon footprint.
The 43m lagoon-shaped swimming pool on the fifth floor uses salt chlorination, which cuts down on chemical waste previously produced by conventional pool chlorine. Equally important is the fact that salt-based chlorine is safe for guests with sensitive skin.
In the energy sector, the hotel is decreasing its carbon footprint with the installation of solar photovoltaic panels on its rooftop. A total of 45 panels have been fitted to the helipad, and they generate 589 GWh of electricity on average, enabling it to offset 177,463.89 liters of gasoline. During daytime, the solar panels can produce enough energy to power 20 guestrooms.
The newly renovated hotel will soon unveil more plans to care better for guests and the environment. More information at grandhyattjakarta.com.
Non-Tax State Revenue Grows 35% in First Half of 2022
Realization of non-tax state revenue (PNBP) was Rp 281 trillion at the end of June, according to the Ministry of Finance, up 35.5 percent from the same period last year when it was Rp 207 trillion. The June realization reached 58.3 percent of the Presidential Regulation (Perpres) 98/2022 target of Rp 481,6 trillion, which was relatively good due to rising commodity prices and economic recovery.
In the first semester of 2022, revenue from sectors such as oil and gas, mineral and coal mining, forestry, fisheries, and geothermal sectors contributed significantly to PNBP.
However, the only decrease was in revenue from the Public Service Agency (BLU) at Rp 45.8 trillion, down 24 percent from the previous year. Director General of Budget Isa Rachmatarwata said all BLU sources of revenue had experienced a decline, especially palm oil, due to a decrease in export volume along with the impact of the ban of crude palm oil (CPO) exports. Isa said despite commodity price falls in the past week, he remains optimistic about meeting the 2022 State Revenue and Expenditure Budget (APBN) target of Rp 335.6 trillion.
The Indonesian food and beverage industry has urged the government to exempt import duty for raw materials to push export performance toward nontraditional markets. In a meeting with Minister of Trade Zulkifli Hasan, industry representatives discussed the need for government support as demand from traditional markets, such as China and the US, has waned in the midst of inflation and rising commodity prices.
Minister Zulkifli expressed his commitment to prepare a way for the industry to penetrate larger global markets. He said the industry has great potential to develop much further, and one of the most effective instruments is to utilize various economic partnership agreements.
The AmCham Office is transitioning back to the office. We are still maximizing online meetings, using the Zoom platform, but starting to have in-person meetings. You will be notified of the meetings as they are scheduled.
What is Your Company Doing on COVID-19?
Please let us know what measures your company may be taking in the form of donations and other assistance to help Indonesia during this time of confusion and concern. Contact [email protected] with your news. We would like to publicize the ways that our AmCham companies are pitching in.
Stay safe, call a doctor if you have a high fever, cough, or difficulty breathing. Stay healthy above all else.
AmCham Update is AmCham's regular newsletter on developments related to the pandemic crisis and other issues in Indonesia. It is edited by AmCham Managing Director A Lin Neumann and written by the AmCham Staff. Paul L Goddard is the Managing Editor.