Indonesia Increases Bond Sale by 20% to $1.5 Billion
Oct. 5 (Bloomberg) -- Indonesia raised the size of its biggest overseas bond sale to $1.5 billion because of excess demand, after fuel subsidy caps restored investor confidence in the nation's finances.
Investors placed orders for about $3.8 billion of bonds, triple the original $1.25 billion on offer, two bankers familiar with the transaction said, asking not to be identified before the securities are priced later today.
The rupiah has gained 16 percent from a four-year low reached on Aug. 30 and stocks have rallied on optimism President Susilo Bambang Yudhoyono is making progress toward meeting budget goals and protecting foreign exchange reserves. The government is offering higher returns than debt of other developing nations with similar ratings to attract investors.
``They are finally getting the budget in order,'' said Anton Hauser, who holds the nation's dollar bonds among the 1.1 billion euros ($1.3 billion) of emerging market debt he helps manage at Vienna-based Erste Sparinvest KAG. ``They have also tried to keep the currency quite strong by raising interest rates.'' Hauser said he plans to buy the new bonds.
The central bank yesterday boosted its reference rate for bill sales, a borrowing benchmark, to 11 percent to curb inflation and support the rupiah. Yudhoyono's government on Oct. 1 more than doubled retail fuel prices to cut subsidies amid record crude oil prices and keep the budget deficit at about 0.9 percent of gross domestic product.
Yield Offer
Higher energy prices may also curb demand in the only member of OPEC that is a net importer of oil. Indonesia had $30.4 billion of foreign reserves as of Sept. 23, versus $36.1 billion at the end of last year, according to the central bank.
The offering of 10-year and 30-year bonds is the biggest overseas debt sale by the government of Southeast Asia's largest economy. The government proceeded with the bond sale four days after suicide bombings killed 22 people on the island of Bali.
The government plans to price $900 million of 10-year bonds and $600 million of 30-year debt today in New York, according to the e-mail, which was sent to investors by one of the sale's arrangers.
The government is set to price the bonds at the lower end of the range of its target yields, the e-mail said. Indonesia expects to price the 10-year bonds yielding 7.625 percent to 7.75 percent, according to the e-mail. The government is seeking to price the 30-year bonds to yield 8.625 percent to 8.75 percent, the e-mail said.
Citigroup Inc., Credit Suisse First Boston and Merrill Lynch & Co. are arranging the sale. Mulia Nasution, director general for treasury at the Finance Ministry, declined to comment when contacted by telephone in Jakarta.
Higher Returns
Indonesia's 7.25 percent bond due in April 2015 yielded 7.4 percent as of 11:50 a.m. in Singapore, according to data provided by Deutsche Bank AG. The yield is 15 basis points higher than it was on Sept. 30, before the Bali bombings.
``They are willing to offer a certain amount of yield pickup over the existing 2015 maturity bonds,'' said Dilip Parameswaran, head of Asian credit research at Calyon in Hong Kong. ``All the things that the government has been trying to do are the right things in the right direction, so bond investors would be happy to buy into these bonds.''
Venezuela's 9.375 percent dollar bonds due in January 2034 yielded 7.9 percent, according to data provided by Deutsche Bank. Venezuela's bonds are rated B2 by Moody's and B+ by S&P, the same as Indonesia's debt ratings. Brazil's 8.25 percent bonds due in January 2034 are yielding 8.3 percent. Brazil is rated B1 by Moody's and BB- by S&P, one level higher than Indonesia.
Buy Recommendation
UBS AG recommended investors buy Indonesia's dollar- denominated bonds following the government's cap on fuel subsidies. Standard & Poor's on Oct. 3 said the decision was ``encouraging'' and will spur investor confidence.
The rupiah rose 0.5 percent to 10,126 against the dollar as of 11 a.m. Jakarta time from late yesterday in Asia. The rupiah slid 7.6 percent from June through to September, reaching 11,800 on Aug. 30, the weakest since April 30, 2001.
Indonesia has the equivalent of $140 billion of debt, including $78.8 billion overseas as of the end of May, central bank data show.
Indonesia's latest bonds are rated B+, four levels lower than investment grade, by S&P. They're rated at BB-, three levels lower than investment grade, by Fitch Ratings.
The country's debt is rated B2, five levels lower than investment grade, by Moody's Investors Service. It has dollar bonds maturing in 2006, 2014 and 2015.
Bank Indonesia yesterday said it lowered its forecast on the nation's economic growth for 2005 to between 5.7 percent and 5.9 percent, from 5.9 percent to 6.1 percent.
To contact the reporter on this story:
Netty Ismail in Singapore nismail3@bloomberg.net.
Full Version: Indonesian Economy, Business, and Trade
IMF welcomes Indonesia's 'courageous' decision to cut fuel subsidies
10.05.2005, 07:25 AM
SINGAPORE (AFX) - The International Monetary Fund welcomed Indonesia's 'wise and courageous' decision to cut fuel subsidies and urged other countries to do the same.
Maintaining fuel subsidies will hurt countries in the longer term, top IMF economists told a forum in Singapore, adding that any reduction should be calibrated and well explained to the public.
'This has been an extremely good step in the right direction,' IMF chief economist Raghuram Rajan told the Singapore Press Club.
'We welcome this step and we think it is something that many countries in the region should adopt.'
In a move to avert a potentially explosive fiscal crisis, cash-strapped Indonesia said Saturday it was more than doubling the average cost of fuel, effectively slashing fuel subsidies.
The decision sparked street protests but the IMF said the move should shore up investor confidence in the country.
'The subsidies were weighing on the government's fiscal account and there were concerns being expressed by both international and domestic investors,' Rajan said, adding that Jakarta's subsequent move to raise interest rates was aimed at warding off inflation.
The IMF's deputy director for Asia, Wanda Tseng, described the move as a 'wise and courageous decision'.
She said the susidies were becoming unsustainable as they accounted for 25 pct of government spending.
The IMF economists said governments should fully explain to their people that oil prices are something they do not control, while providing targetted help to the poorest segments of society.
Tseng said it was still too early to discern the impact of the reduction of the subsidies on the Indonesian economy but said it should boost investor confidence.
'I think the government has put on a very solid foundation for further growth and further development of the economy.
'And on the energy side, I think it's very important in terms of energy conservation and also investments. Indonesia lags in investment in the oil sector and I think this is a positive step from that point of view,' she said.
10.05.2005, 07:25 AM
SINGAPORE (AFX) - The International Monetary Fund welcomed Indonesia's 'wise and courageous' decision to cut fuel subsidies and urged other countries to do the same.
Maintaining fuel subsidies will hurt countries in the longer term, top IMF economists told a forum in Singapore, adding that any reduction should be calibrated and well explained to the public.
'This has been an extremely good step in the right direction,' IMF chief economist Raghuram Rajan told the Singapore Press Club.
'We welcome this step and we think it is something that many countries in the region should adopt.'
In a move to avert a potentially explosive fiscal crisis, cash-strapped Indonesia said Saturday it was more than doubling the average cost of fuel, effectively slashing fuel subsidies.
The decision sparked street protests but the IMF said the move should shore up investor confidence in the country.
'The subsidies were weighing on the government's fiscal account and there were concerns being expressed by both international and domestic investors,' Rajan said, adding that Jakarta's subsequent move to raise interest rates was aimed at warding off inflation.
The IMF's deputy director for Asia, Wanda Tseng, described the move as a 'wise and courageous decision'.
She said the susidies were becoming unsustainable as they accounted for 25 pct of government spending.
The IMF economists said governments should fully explain to their people that oil prices are something they do not control, while providing targetted help to the poorest segments of society.
Tseng said it was still too early to discern the impact of the reduction of the subsidies on the Indonesian economy but said it should boost investor confidence.
'I think the government has put on a very solid foundation for further growth and further development of the economy.
'And on the energy side, I think it's very important in terms of energy conservation and also investments. Indonesia lags in investment in the oil sector and I think this is a positive step from that point of view,' she said.
Currency Strategists: Standard Chartered Is Bullish on Rupiah
Oct. 6 (Bloomberg) -- Investors should bet on a gain in the Indonesian rupiah after the central bank raised its benchmark interest rate to a two-year high, said Marios Maratheftis, a currency strategist at Standard Chartered Plc.
The rupiah is up 5 percent since sliding to a four-year low on Aug. 30 and the bank said it's now confident advising clients to open a short position in the dollar against the rupiah. A short position is a wager on a currency's decline. The call was made after Bank Indonesia on Oct. 4 raised its rate to 11 percent, the fourth increase in nine weeks.
``A few weeks ago the currency came under increasing pressure, but since then the policy response has been very encouraging,'' said London-based Maratheftis. ``They've increased the interest rate aggressively and this is one of the conditions that was needed to stop the attack on the currency.''
Standard Chartered, a U.K. bank that gets two thirds of its profit in Asia, predicts the rupiah will advance to 9,700 per dollar by year-end from 10,030 at 5 p.m. in Jakarta yesterday.
The firm also recommended buying six-month rupiah non- deliverable forward contracts. Forward contracts allow investors to bet on the future value of a currency or hedge investments denominated in it.
The comments suggest investors judge Indonesia doesn't face a crisis similar to that of 1997 to 1998, years in which the rupiah lost 56 percent and 33 percent respectively. International Monetary Fund Chief Economist Raghuram Rajan told reporters in Singapore yesterday that higher rates and the government's decision last week to boost fuel prices are a ``step in the right direction.''
Bank Indonesia may lift the benchmark rate to 12 percent by the end of the first quarter of 2006, Standard Chartered predicts.
Fuel Prices
The rate increase came three days after President Susilo Bambang Yudhoyono almost tripled kerosene prices and more than doubled diesel tariffs to cap the energy subsidies that eroded confidence in the nation's finances.
The price increase will allow the government to keep its budget deficit at 24.9 trillion rupiah, or about 0.9 percent of the country's gross domestic product. The currency plunged 8.9 percent on Aug. 30 as the price of crude oil climbed to a record $70.85 a barrel.
``Indonesian authorities have done much to repair their damaged policy credibility,'' Standard Chartered's currency strategy team, led by Callum Henderson in Singapore, wrote in a report yesterday.
Maratheftis, who has a Masters in Economics and Finance from the U.K.'s University of Warwick and joined the bank from Greece's Alpha Bank SA, confirmed the report's contents.
`More Optimism'
Investors pushed the rupiah lower in five of the past eight weeks on concern rising crude oil prices would force the government to buy more dollars to finance fuel subsidies to keep energy affordable for the nation's 40 million poor. Indonesia is the only OPEC member that is a net importer of oil.
``The worst for the Indonesian rupiah is over for now,'' Michael Straughan, an emerging-market economist at American Express Bank in London, said in an interview yesterday. ``There is more optimism that Indonesia will tackle these problems and that should be better going forward for Indonesia.''
To contact the reporter on this story:
Jake Lee in London at gpjlee127@bloomberg.net
Oct. 6 (Bloomberg) -- Investors should bet on a gain in the Indonesian rupiah after the central bank raised its benchmark interest rate to a two-year high, said Marios Maratheftis, a currency strategist at Standard Chartered Plc.
The rupiah is up 5 percent since sliding to a four-year low on Aug. 30 and the bank said it's now confident advising clients to open a short position in the dollar against the rupiah. A short position is a wager on a currency's decline. The call was made after Bank Indonesia on Oct. 4 raised its rate to 11 percent, the fourth increase in nine weeks.
``A few weeks ago the currency came under increasing pressure, but since then the policy response has been very encouraging,'' said London-based Maratheftis. ``They've increased the interest rate aggressively and this is one of the conditions that was needed to stop the attack on the currency.''
Standard Chartered, a U.K. bank that gets two thirds of its profit in Asia, predicts the rupiah will advance to 9,700 per dollar by year-end from 10,030 at 5 p.m. in Jakarta yesterday.
The firm also recommended buying six-month rupiah non- deliverable forward contracts. Forward contracts allow investors to bet on the future value of a currency or hedge investments denominated in it.
The comments suggest investors judge Indonesia doesn't face a crisis similar to that of 1997 to 1998, years in which the rupiah lost 56 percent and 33 percent respectively. International Monetary Fund Chief Economist Raghuram Rajan told reporters in Singapore yesterday that higher rates and the government's decision last week to boost fuel prices are a ``step in the right direction.''
Bank Indonesia may lift the benchmark rate to 12 percent by the end of the first quarter of 2006, Standard Chartered predicts.
Fuel Prices
The rate increase came three days after President Susilo Bambang Yudhoyono almost tripled kerosene prices and more than doubled diesel tariffs to cap the energy subsidies that eroded confidence in the nation's finances.
The price increase will allow the government to keep its budget deficit at 24.9 trillion rupiah, or about 0.9 percent of the country's gross domestic product. The currency plunged 8.9 percent on Aug. 30 as the price of crude oil climbed to a record $70.85 a barrel.
``Indonesian authorities have done much to repair their damaged policy credibility,'' Standard Chartered's currency strategy team, led by Callum Henderson in Singapore, wrote in a report yesterday.
Maratheftis, who has a Masters in Economics and Finance from the U.K.'s University of Warwick and joined the bank from Greece's Alpha Bank SA, confirmed the report's contents.
`More Optimism'
Investors pushed the rupiah lower in five of the past eight weeks on concern rising crude oil prices would force the government to buy more dollars to finance fuel subsidies to keep energy affordable for the nation's 40 million poor. Indonesia is the only OPEC member that is a net importer of oil.
``The worst for the Indonesian rupiah is over for now,'' Michael Straughan, an emerging-market economist at American Express Bank in London, said in an interview yesterday. ``There is more optimism that Indonesia will tackle these problems and that should be better going forward for Indonesia.''
To contact the reporter on this story:
Jake Lee in London at gpjlee127@bloomberg.net
Indonesia Jan-Sept FDI approvals 10.66 bln usd vs 8.33 bln
10.06.2005, 04:57 AM
JAKARTA (AFX) - Foreign direct investment approvals in Indonesia rose 28 pct in the nine months to September to 10.66 bln usd from 8.33 bln in the same period last year, the National Investment Coordinating Board (BKPM) said.
It said in a report that domestic investment approvals in the nine months grew to 38.24 trln rupiah from 34.33 trln a year earlier.
Actual foreign direct investment in the first nine months of the year amounted to 7.64 bln usd compared to 2.94 bln a year earlier, while actual domestic investments amounted to 11.97 trln rupiah compared with 9.90 trln.
The board records actual investments as investment projects that have begun producing goods and services.
10.06.2005, 04:57 AM
JAKARTA (AFX) - Foreign direct investment approvals in Indonesia rose 28 pct in the nine months to September to 10.66 bln usd from 8.33 bln in the same period last year, the National Investment Coordinating Board (BKPM) said.
It said in a report that domestic investment approvals in the nine months grew to 38.24 trln rupiah from 34.33 trln a year earlier.
Actual foreign direct investment in the first nine months of the year amounted to 7.64 bln usd compared to 2.94 bln a year earlier, while actual domestic investments amounted to 11.97 trln rupiah compared with 9.90 trln.
The board records actual investments as investment projects that have begun producing goods and services.
U.S. billionaire scopes possible RI investments
Rendi A. Witular, The Jakarta Post, Jakarta
In a sign of increasing U.S. business confidence in Indonesia's business climate, U.S. billionaire David "Bondo" Bonderman met with President Susilo Bambang Yudhoyono late on Wednesday to explore investment opportunities here.
Bonderman, who flew by private jet to Jakarta for a two-day visit, is the founding partner of Texas Pacific Group (TPG) -- one of the largest U.S. private equity firms with over US$20 billion under its management.
Among the companies and brands owned by TPG are Ducati Motor Holdings, J. Crew Group, Raffles Hotel, Metro-Goldwyn-Mayer Inc., Debenhams Food and Beverage, Burger King, Del Monte Foods, Punch Taverns, Bally and Seagate Technology.
During the one-hour meeting with Susilo at the Presidential Palace, Bonderman, who has a degree in Islamic law, sought an update on the government's economic and legal reforms before his investment firms decided to invest here.
"We are quite serious to explore investment opportunities in Indonesia as we believe (the domestic) investment climate is improving," Newbridge Capital LLC managing director Timothy Dattels told The Jakarta Post after the meeting.
Newbridge is a subsidiary of TPG that focuses in making direct investments in Asia. The firm manages some $2 billion in the region, including an acquisition of Advanced Interconnect Technologies from Indonesian automotive kingpin PT Astra International in 1998.
Dattels said Bonderman was very happy with the efforts taken by Susilo's government to stamp out corruption, improve legal certainty and improve the political and business climates.
When asked if terror attacks over the past four years -- and in particular, the latest to hit the resort island of Bali -- would discourage the group from investing here, Dattels said such incidents were not very concerning as security problems had become a global issue faced by many other countries.
"We are pretty comfortable in Jakarta, in terms of security. It is actually not our utmost concern, as everywhere in the world there are security problems," he said.
TPG through Newbridge has invested in a variety of industries in Asia, including consumer food and beverage, semiconductors, port services, hotel and property management, steel, banking and financial services, software development and telecommunications.
TPG generally seeks opportunities requiring equity investments of between $100 million and $500 million.
However, Dattels said the group would need some time before taking any decision to invest since it was still seeking further equity investment opportunities in certain sectors in the country.
President director of JPMorgan Indonesia Gita Wirjawan, who accompanied Bonderman in meeting Susilo, said the President had conveyed his appreciation of Bonderman for his interest in Indonesia.
"President Susilo said the visit from Bonderman will give a positive signal to other global investors to start seeking investment opportunities in Indonesia as the business climate here is improving," he said.
Rendi A. Witular, The Jakarta Post, Jakarta
In a sign of increasing U.S. business confidence in Indonesia's business climate, U.S. billionaire David "Bondo" Bonderman met with President Susilo Bambang Yudhoyono late on Wednesday to explore investment opportunities here.
Bonderman, who flew by private jet to Jakarta for a two-day visit, is the founding partner of Texas Pacific Group (TPG) -- one of the largest U.S. private equity firms with over US$20 billion under its management.
Among the companies and brands owned by TPG are Ducati Motor Holdings, J. Crew Group, Raffles Hotel, Metro-Goldwyn-Mayer Inc., Debenhams Food and Beverage, Burger King, Del Monte Foods, Punch Taverns, Bally and Seagate Technology.
During the one-hour meeting with Susilo at the Presidential Palace, Bonderman, who has a degree in Islamic law, sought an update on the government's economic and legal reforms before his investment firms decided to invest here.
"We are quite serious to explore investment opportunities in Indonesia as we believe (the domestic) investment climate is improving," Newbridge Capital LLC managing director Timothy Dattels told The Jakarta Post after the meeting.
Newbridge is a subsidiary of TPG that focuses in making direct investments in Asia. The firm manages some $2 billion in the region, including an acquisition of Advanced Interconnect Technologies from Indonesian automotive kingpin PT Astra International in 1998.
Dattels said Bonderman was very happy with the efforts taken by Susilo's government to stamp out corruption, improve legal certainty and improve the political and business climates.
When asked if terror attacks over the past four years -- and in particular, the latest to hit the resort island of Bali -- would discourage the group from investing here, Dattels said such incidents were not very concerning as security problems had become a global issue faced by many other countries.
"We are pretty comfortable in Jakarta, in terms of security. It is actually not our utmost concern, as everywhere in the world there are security problems," he said.
TPG through Newbridge has invested in a variety of industries in Asia, including consumer food and beverage, semiconductors, port services, hotel and property management, steel, banking and financial services, software development and telecommunications.
TPG generally seeks opportunities requiring equity investments of between $100 million and $500 million.
However, Dattels said the group would need some time before taking any decision to invest since it was still seeking further equity investment opportunities in certain sectors in the country.
President director of JPMorgan Indonesia Gita Wirjawan, who accompanied Bonderman in meeting Susilo, said the President had conveyed his appreciation of Bonderman for his interest in Indonesia.
"President Susilo said the visit from Bonderman will give a positive signal to other global investors to start seeking investment opportunities in Indonesia as the business climate here is improving," he said.
Foreign direct investment on upward trend: BKPM
Urip Hudiono, The Jakarta Post, Jakarta
Foreign direct investment (FDI) is maintaining its upward trend, data from the Investment Coordinating Board (BKPM) shows, ahead of a possible slowdown due to rising fuel prices and interest rates, and jitters resulting from the Bali bombings.
BKPM announced on Thursday that actual investment realization -- from both domestic and overseas sources -- in the first nine months of the year had increased two-fold from the same period last year, reaching a total of Rp 84.5 trillion (some US$8.45 billion).
FDI realization for the January to September period alone, BKPM chairman Muhammad Lutfi said, had more than doubled to $7.64 billion, from $2.94 billion in the corresponding period a year earlier.
New FDI being realized in the transportation, warehousing and communications sectors led the advance with 44 projects valued at $2.19 billion, ahead of 32 projects worth $1.09 billion in the chemical and pharmaceutical industry, and 26 projects worth $891 million in the construction sector.
The bulk of FDI realization came from Singapore (84 projects worth $2.09 billion), the U.K. (58 worth $1.22 billion), and Japan (111 worth $983 million).
Domestic investment, meanwhile, which grew by nearly 21 percent to Rp 11.97 trillion until the year's third quarter, were mostly in the food processing industry (with 28 projects worth Rp 2.7 trillion), followed by the agriculture and plantation sector (10 projects worth Rp 1.58 trillion), and the textile industry (18 projects worth Rp 1.5 trillion).
In total, domestic and foreign investment realization had provided jobs for 197,643 workers, according to the data.
Other parts of the BKPM report show that total investment approvals also increased by nearly 23 percent to a value of Rp 139.5 trillion in the third quarter compared to the same period last year, with FDI approvals alone rising some 28 percent to Rp 101.29 trillion, representing around 72% of total investment approvals.
The government is targeting Rp 179 trillion worth of investment approvals for 2005, with at least Rp 50.1 trillion being actually realized within the same year.
Urip Hudiono, The Jakarta Post, Jakarta
Foreign direct investment (FDI) is maintaining its upward trend, data from the Investment Coordinating Board (BKPM) shows, ahead of a possible slowdown due to rising fuel prices and interest rates, and jitters resulting from the Bali bombings.
BKPM announced on Thursday that actual investment realization -- from both domestic and overseas sources -- in the first nine months of the year had increased two-fold from the same period last year, reaching a total of Rp 84.5 trillion (some US$8.45 billion).
FDI realization for the January to September period alone, BKPM chairman Muhammad Lutfi said, had more than doubled to $7.64 billion, from $2.94 billion in the corresponding period a year earlier.
New FDI being realized in the transportation, warehousing and communications sectors led the advance with 44 projects valued at $2.19 billion, ahead of 32 projects worth $1.09 billion in the chemical and pharmaceutical industry, and 26 projects worth $891 million in the construction sector.
The bulk of FDI realization came from Singapore (84 projects worth $2.09 billion), the U.K. (58 worth $1.22 billion), and Japan (111 worth $983 million).
Domestic investment, meanwhile, which grew by nearly 21 percent to Rp 11.97 trillion until the year's third quarter, were mostly in the food processing industry (with 28 projects worth Rp 2.7 trillion), followed by the agriculture and plantation sector (10 projects worth Rp 1.58 trillion), and the textile industry (18 projects worth Rp 1.5 trillion).
In total, domestic and foreign investment realization had provided jobs for 197,643 workers, according to the data.
Other parts of the BKPM report show that total investment approvals also increased by nearly 23 percent to a value of Rp 139.5 trillion in the third quarter compared to the same period last year, with FDI approvals alone rising some 28 percent to Rp 101.29 trillion, representing around 72% of total investment approvals.
The government is targeting Rp 179 trillion worth of investment approvals for 2005, with at least Rp 50.1 trillion being actually realized within the same year.
Indonesia`s electronic market to grow by 103 pct in 2010
JAKARTA, 10/15 - Indonesia`s market of electronic products will grow 103 percent to reach 22.5 trillion rupiah (some 2.25 billion US dollars) in five years, local media Bisnis Indonesia reported Friday.
According to data from the Indonesia`s Electronic Marketer Club and Indonesian electronic Businessmen Union, in 2010, the country` s television market will share the biggest portion with 9.3 million unit, valued at 11.2 trillion rupiah (some 1.12 billion US dollars), followed by air conditioner 2.1 million units with value of 4.9 trillion rupiah (some 490 million US dollars), refrigerator with 2.8 million units with value of 3.8 trillion rupiah (about 380 million US dollars), and washing machine 2.2 million units with value of 2.6 trillion rupiah (some 260 million US dollars).
The report said that last year, the biggest sales were dominated by television with value of 5.4 trillion rupiah (some 540 million US dollars), followed by refrigerator with value of 2. 6 trillion rupiah (some 260 million US dollars), air conditioner with value of 2.1 trillion rupiah (some 210 million US dollars) and washing machine with value of 981 million rupiah (about 98,100 US dollars).
JAKARTA, 10/15 - Indonesia`s market of electronic products will grow 103 percent to reach 22.5 trillion rupiah (some 2.25 billion US dollars) in five years, local media Bisnis Indonesia reported Friday.
According to data from the Indonesia`s Electronic Marketer Club and Indonesian electronic Businessmen Union, in 2010, the country` s television market will share the biggest portion with 9.3 million unit, valued at 11.2 trillion rupiah (some 1.12 billion US dollars), followed by air conditioner 2.1 million units with value of 4.9 trillion rupiah (some 490 million US dollars), refrigerator with 2.8 million units with value of 3.8 trillion rupiah (about 380 million US dollars), and washing machine 2.2 million units with value of 2.6 trillion rupiah (some 260 million US dollars).
The report said that last year, the biggest sales were dominated by television with value of 5.4 trillion rupiah (some 540 million US dollars), followed by refrigerator with value of 2. 6 trillion rupiah (some 260 million US dollars), air conditioner with value of 2.1 trillion rupiah (some 210 million US dollars) and washing machine with value of 981 million rupiah (about 98,100 US dollars).
Indonesia's rubber glove output expected to rise due to increased demand amid bird flu
JAKARTA (AP): Indonesia expects to produce more rubber gloves this year as health workers in Asia and elsewhere take greater precautions to protect themselves against bird flu, an industry official said Tuesday.
Output in Indonesia, which is among the world's biggest latex glove manufacturers, is expected to rise 12.5 percent to 9 billion pieces this year, said A. Safiun, chairman of the Indonesian Rubber Glove Manufacturers Association.
"Global demand is already growing due to rising hygiene consciousness," Safiun told DowJones Newswires. "That will grow further as the avian flu will spur wider use of rubber gloves in Asia."
More than 60 people have died of bird flu in Southeast Asia, including three in Indonesia, since the disease began ravaging poultry stocks in region two years ago. The outbreak now threatens to spread to other parts of the world such as Europe.
Indonesia, Malaysia and Thailand are world's major latex glove manufacturers, accounting for about 85 percent of global rubber glove sales in 2004.
Most of the gloves are used in the U.S. and Europe, but Safiun said the bird flu outbreak is expected to help foster the use of disposable rubber gloves in Asia.
"Once people use rubber glove, they will continue using it," he said.
Indonesia's rubber glove exports rose 26 percent to 46,567 metric tons in 2004. In January-to-May this year, Indonesia exported 25,891 tons of rubber gloves. (**)
JAKARTA (AP): Indonesia expects to produce more rubber gloves this year as health workers in Asia and elsewhere take greater precautions to protect themselves against bird flu, an industry official said Tuesday.
Output in Indonesia, which is among the world's biggest latex glove manufacturers, is expected to rise 12.5 percent to 9 billion pieces this year, said A. Safiun, chairman of the Indonesian Rubber Glove Manufacturers Association.
"Global demand is already growing due to rising hygiene consciousness," Safiun told DowJones Newswires. "That will grow further as the avian flu will spur wider use of rubber gloves in Asia."
More than 60 people have died of bird flu in Southeast Asia, including three in Indonesia, since the disease began ravaging poultry stocks in region two years ago. The outbreak now threatens to spread to other parts of the world such as Europe.
Indonesia, Malaysia and Thailand are world's major latex glove manufacturers, accounting for about 85 percent of global rubber glove sales in 2004.
Most of the gloves are used in the U.S. and Europe, but Safiun said the bird flu outbreak is expected to help foster the use of disposable rubber gloves in Asia.
"Once people use rubber glove, they will continue using it," he said.
Indonesia's rubber glove exports rose 26 percent to 46,567 metric tons in 2004. In January-to-May this year, Indonesia exported 25,891 tons of rubber gloves. (**)
Bank Dunia Optimistis Pertumbuhan Ekonomi Indonesia Bisa 6 Persen
Senin, 03 Oktober 2005 | 17:22 WIB
TEMPO Interaktif, Jakarta:Kepala Perwakilan Bank Dunia untuk Indonesia Andrew Steer menyatakan, optimisme tersebut karena Bank Dunia percaya pada saat ini perekonomian Indonesia sudah sangat kuat. Selain itu juga investasasi telah tumbuh dengan cepat.
“Kami menduga pertumbuhan ekonomi akan hampir mencapai 6 persen tahun ini,” kata Steer di Jakarta, Senin (3/10).
Stephen Schwartz, pejabat senior perwakilan Jakarta Dana Moneter Internasional juga memperkirakan ekonomi Indonesia akan tetap tumbuh walaupun beberapa kalangan menyatakan pesimistis.
“Ini didasari dari berlangsungnya pemilu yang damai tahun lalu dan stabilitas kondisi sosial ekonomi yang terjadi,” tuturnya.
Selain itu, kata dia, pengumuman kenaikan harga BBM oleh pemerintah ternyata ditanggapi positif oleh pasar.
“Protes masyarakat pun sudah mulai mereda.”
RR. Ariyani
Senin, 03 Oktober 2005 | 17:22 WIB
TEMPO Interaktif, Jakarta:Kepala Perwakilan Bank Dunia untuk Indonesia Andrew Steer menyatakan, optimisme tersebut karena Bank Dunia percaya pada saat ini perekonomian Indonesia sudah sangat kuat. Selain itu juga investasasi telah tumbuh dengan cepat.
“Kami menduga pertumbuhan ekonomi akan hampir mencapai 6 persen tahun ini,” kata Steer di Jakarta, Senin (3/10).
Stephen Schwartz, pejabat senior perwakilan Jakarta Dana Moneter Internasional juga memperkirakan ekonomi Indonesia akan tetap tumbuh walaupun beberapa kalangan menyatakan pesimistis.
“Ini didasari dari berlangsungnya pemilu yang damai tahun lalu dan stabilitas kondisi sosial ekonomi yang terjadi,” tuturnya.
Selain itu, kata dia, pengumuman kenaikan harga BBM oleh pemerintah ternyata ditanggapi positif oleh pasar.
“Protes masyarakat pun sudah mulai mereda.”
RR. Ariyani
Murdoch's Star TV buys 20% stake in Indonesia's ANTV
JAKARTA (Bloomberg): Billionaire Rupert Murdoch's Star TV bought a 20 percent stake in PT Cakrawala Andalas Televisi, which runs the ANTV channel in Indonesia, to tap the SoutheastAsian nation's $2.1 billion advertisement market.
Star TV spokeswoman Jannie Poon didn't disclose the value of the transaction. ANTV, controlled by the family of Indonesia's top economic minister Aburizal Bakrie, will use the proceeds to train personnel and improve programming, spokeswoman Zoraya Perucha said. Under Indonesian law, foreigninvestors are allowed to buy as much as 20 percent in a local television company.
Star TV, owned by News Corp., is expanding in Asia's third- most populated nation where advertising sales are estimated to grow 20 percent, according to ACNielsen.ANTV, which has 7 percent of the market, may benefit because its low rates and Star's brand will attract advertisers, analyst Ben Santoso said.
"All television companies expect the big three are losing money," said Santoso, who monitors television companies at PT Namalatu Cakrawala Securities in Jakarta. "If Star TV can attract new advertisers it will help."
PT Rajawali Citra Televisi Indonesia, or RCTI, controlled by former president Suharto's family, is the nation's most popular broadcaster. Indosiar and SCTV rank second and third.
ANTV expects Star TV's investment to help boost its market share from 7 percent, Anindya Bakrie, president of the Indonesian broadcaster, told reporters in Jakarta today, without giving details. Star TV is entering Indonesia after it faced obstacles in China when the government reversed a policy of relaxing controls on international media companies.
"We were looking for the opportunity," in Indonesia, Star TV's Poon told reporters in Jakarta. "This is the first step," she said without elaborating. (***)
JAKARTA (Bloomberg): Billionaire Rupert Murdoch's Star TV bought a 20 percent stake in PT Cakrawala Andalas Televisi, which runs the ANTV channel in Indonesia, to tap the SoutheastAsian nation's $2.1 billion advertisement market.
Star TV spokeswoman Jannie Poon didn't disclose the value of the transaction. ANTV, controlled by the family of Indonesia's top economic minister Aburizal Bakrie, will use the proceeds to train personnel and improve programming, spokeswoman Zoraya Perucha said. Under Indonesian law, foreigninvestors are allowed to buy as much as 20 percent in a local television company.
Star TV, owned by News Corp., is expanding in Asia's third- most populated nation where advertising sales are estimated to grow 20 percent, according to ACNielsen.ANTV, which has 7 percent of the market, may benefit because its low rates and Star's brand will attract advertisers, analyst Ben Santoso said.
"All television companies expect the big three are losing money," said Santoso, who monitors television companies at PT Namalatu Cakrawala Securities in Jakarta. "If Star TV can attract new advertisers it will help."
PT Rajawali Citra Televisi Indonesia, or RCTI, controlled by former president Suharto's family, is the nation's most popular broadcaster. Indosiar and SCTV rank second and third.
ANTV expects Star TV's investment to help boost its market share from 7 percent, Anindya Bakrie, president of the Indonesian broadcaster, told reporters in Jakarta today, without giving details. Star TV is entering Indonesia after it faced obstacles in China when the government reversed a policy of relaxing controls on international media companies.
"We were looking for the opportunity," in Indonesia, Star TV's Poon told reporters in Jakarta. "This is the first step," she said without elaborating. (***)
Uh uh..........
Take a deep breath, purnomor
You look panic !
You are really a "great " propagandist of our government/military
Good job !
Take a deep breath, purnomor
You look panic !
You are really a "great " propagandist of our government/military
Good job !
Don't worry, wul, I always take things easily. Why are you attacking me? Do you have any comments on the topic of Indonesian economy?
Indonesia's August motorbike sales up 41.7 pct y/y
JAKARTA, Sept 22 (Reuters) - Motorcycle sales in Indonesia rose 41.7 percent in August from a year earlier as demand stayed robust despite rising interest rates and a weaker currency, data from the country's largest automotive distributor showed.
PT Astra International Tbk , controlled by Singapore's Jardine Cycle and Carriage Ltd , said 504,787 units of motorcycles were sold in August, a record high monthly volume.
The August figure brought the total sales for the first eight months of 2005 to 3.43 million, nearly matching the total for all of 2004 of 3.89 million units.
Astra distributes Honda Motor Co. Ltd. motorcycles in Indonesia, which accounted for 50.8 percent of August sales. Honda motorcycle sales rose 35.2 percent last month compared to the same period of 2004.
Cheaper financing, due to historically low interest rates, has helped boost car and motorcycle sales in the world's fourth most populous nation, home to 220 million. But a fall in the rupiah to a four-year low last month prompted the central bank to raise rates twice in once week.
Distributors and auto financing companies were optimistic that the growth rate of motorcycle sales in Southeast Asia's largest economy could continue to rise due to low penetration rate for motorbike usage in the country.
The motorcycle penetration rate in Indonesia was estimated around 12 percent, compared to 40 percent in Thailand and Malaysia, the chairman of Indonesia's Motorcycle Industry has said.
Some analysts have said the recent interest rate rises could dampen demand. Bank Indonesia hiked its target for the rate on benchmark one-month paper (SBI) on Aug. 30 and Sept. 6, lifting it by a total of 125 basis points.
The SBI rate has risen by more than 250 basis points since the start of the year, forcing some banks and financial institutions to adjust their lending rates.
JAKARTA, Sept 22 (Reuters) - Motorcycle sales in Indonesia rose 41.7 percent in August from a year earlier as demand stayed robust despite rising interest rates and a weaker currency, data from the country's largest automotive distributor showed.
PT Astra International Tbk , controlled by Singapore's Jardine Cycle and Carriage Ltd , said 504,787 units of motorcycles were sold in August, a record high monthly volume.
The August figure brought the total sales for the first eight months of 2005 to 3.43 million, nearly matching the total for all of 2004 of 3.89 million units.
Astra distributes Honda Motor Co. Ltd. motorcycles in Indonesia, which accounted for 50.8 percent of August sales. Honda motorcycle sales rose 35.2 percent last month compared to the same period of 2004.
Cheaper financing, due to historically low interest rates, has helped boost car and motorcycle sales in the world's fourth most populous nation, home to 220 million. But a fall in the rupiah to a four-year low last month prompted the central bank to raise rates twice in once week.
Distributors and auto financing companies were optimistic that the growth rate of motorcycle sales in Southeast Asia's largest economy could continue to rise due to low penetration rate for motorbike usage in the country.
The motorcycle penetration rate in Indonesia was estimated around 12 percent, compared to 40 percent in Thailand and Malaysia, the chairman of Indonesia's Motorcycle Industry has said.
Some analysts have said the recent interest rate rises could dampen demand. Bank Indonesia hiked its target for the rate on benchmark one-month paper (SBI) on Aug. 30 and Sept. 6, lifting it by a total of 125 basis points.
The SBI rate has risen by more than 250 basis points since the start of the year, forcing some banks and financial institutions to adjust their lending rates.
Telkomsel to enhance network in Indonesia
By Andrea Tan Bloomberg News
SINGAPORE Telekomunikasi Selular, Indonesia's biggest mobile-phone operator, has said it plans to spend $850 million, 21 percent more than its earlier estimate, to expand its network and add customers.
Also known as Telkomsel, the company is expanding outside the main island of Java, where mobile usage is low, to attract new users. The Jakarta-based company, which offers stored-value cards and the option of monthly bills, has trimmed prices and sold cheaper cards to first-time users to gain more customers in a country where half of the residents live on less than $2 a day.
Telkomsel has to compete with entrants like Hutchison Telecommunications International, Telekom Malaysia and Maxis Communications, which have invested in Indonesia's mobile phone market. Eight companies, including Hutchison's Cyber Access Telecommunications and Maxis's Lippo Telecom, are vying for a share in a market where fewer than 20 percent of the people own a cellphone.
"The competition will get more competitive," the Telkomsel president director, Kiskenda Suriahardja, said in a telephone interview Thursday. "But network roll-out and coverage is very important to cellular users, and we're doing that aggressively."
Telkomsel expects to surpass its goal of 25 million users this year by 10 percent and to grow 30 percent next year even as competition increases, said Suriahardja, who joined Telkomsel in March. Telkomsel had 16 million users last year, 67 percent more than the previous year.
Indonesia's cellphone users are set to increase to 45 million by the end of the year, according to the association of Indonesian cellular operators. The number may grow to about 79 million users by 2007, according to Morgan Stanley, making Indonesia the fourth-largest mobile phone market in Asia.
"The existing players are likely to sustain their positions, at least in the near term, as the market's strong growth offsets the impact of rising competition and foreign investment," Anna Ho and Jeffrey Lam, analysts at Moody's Investors Service, wrote in a report issued Friday.
Telkomsel's bonds are rated Baa2, the lowest investment grade.
Faster economic growth is driving demand for cellular services in Indonesia. The $258 billion economy grew 5.1 percent last year and is expected to expand 6 percent this year, according to government forecasts, which would be its fastest pace since 1996.
Telkomsel controls more than half of Indonesia's cellphone market. Indosat, the nation's second-largest phone company, has about one-third and Excelcomindo Pratama has about 11 percent, Suriahardja said.
"We won't have to cut prices more" to attract users, Suriahardja said. "Indosat's more aggressive now and has the same strategy as us, but we were here first."
Telekomunikasi Indonesia, the nation's biggest phone company, owns 65 percent of Telkomsel. Singapore Telecommunications holds the rest.
Telkomsel in July reported a 57 percent jump in net income to 3.79 trillion rupiah, or $367 million, for the six months that ended June 30, citing an increase in subscribers. The company expects sales and earnings before interest, taxes, depreciation and amortization to grow by 25 percent to 30 percent this year.
Indonesia will invite phone companies to bid in November for rights to operate high-speed wireless, or 3G, services. Telkomsel received a trial, six-month 3G license from the government in May to test the technology.
Indonesia previously had granted 3G licenses to Natrindo Telepon Selular, which operates Lippo Telecom, and Hutchison Telecom's Cyber Access Communications.
Telkomsel's 3.8 million subscribers who use mobile data services will be the company's "first priority" in the upcoming 3G contest, Suriahardja said.
By Andrea Tan Bloomberg News
SINGAPORE Telekomunikasi Selular, Indonesia's biggest mobile-phone operator, has said it plans to spend $850 million, 21 percent more than its earlier estimate, to expand its network and add customers.
Also known as Telkomsel, the company is expanding outside the main island of Java, where mobile usage is low, to attract new users. The Jakarta-based company, which offers stored-value cards and the option of monthly bills, has trimmed prices and sold cheaper cards to first-time users to gain more customers in a country where half of the residents live on less than $2 a day.
Telkomsel has to compete with entrants like Hutchison Telecommunications International, Telekom Malaysia and Maxis Communications, which have invested in Indonesia's mobile phone market. Eight companies, including Hutchison's Cyber Access Telecommunications and Maxis's Lippo Telecom, are vying for a share in a market where fewer than 20 percent of the people own a cellphone.
"The competition will get more competitive," the Telkomsel president director, Kiskenda Suriahardja, said in a telephone interview Thursday. "But network roll-out and coverage is very important to cellular users, and we're doing that aggressively."
Telkomsel expects to surpass its goal of 25 million users this year by 10 percent and to grow 30 percent next year even as competition increases, said Suriahardja, who joined Telkomsel in March. Telkomsel had 16 million users last year, 67 percent more than the previous year.
Indonesia's cellphone users are set to increase to 45 million by the end of the year, according to the association of Indonesian cellular operators. The number may grow to about 79 million users by 2007, according to Morgan Stanley, making Indonesia the fourth-largest mobile phone market in Asia.
"The existing players are likely to sustain their positions, at least in the near term, as the market's strong growth offsets the impact of rising competition and foreign investment," Anna Ho and Jeffrey Lam, analysts at Moody's Investors Service, wrote in a report issued Friday.
Telkomsel's bonds are rated Baa2, the lowest investment grade.
Faster economic growth is driving demand for cellular services in Indonesia. The $258 billion economy grew 5.1 percent last year and is expected to expand 6 percent this year, according to government forecasts, which would be its fastest pace since 1996.
Telkomsel controls more than half of Indonesia's cellphone market. Indosat, the nation's second-largest phone company, has about one-third and Excelcomindo Pratama has about 11 percent, Suriahardja said.
"We won't have to cut prices more" to attract users, Suriahardja said. "Indosat's more aggressive now and has the same strategy as us, but we were here first."
Telekomunikasi Indonesia, the nation's biggest phone company, owns 65 percent of Telkomsel. Singapore Telecommunications holds the rest.
Telkomsel in July reported a 57 percent jump in net income to 3.79 trillion rupiah, or $367 million, for the six months that ended June 30, citing an increase in subscribers. The company expects sales and earnings before interest, taxes, depreciation and amortization to grow by 25 percent to 30 percent this year.
Indonesia will invite phone companies to bid in November for rights to operate high-speed wireless, or 3G, services. Telkomsel received a trial, six-month 3G license from the government in May to test the technology.
Indonesia previously had granted 3G licenses to Natrindo Telepon Selular, which operates Lippo Telecom, and Hutchison Telecom's Cyber Access Communications.
Telkomsel's 3.8 million subscribers who use mobile data services will be the company's "first priority" in the upcoming 3G contest, Suriahardja said.
Japanese investment in Indonesia to double
JAKARTA - The Indonesian government expects Japan's investment and the value of export by Japanese companies in Indonesia to double in the coming five years, Coordinating Minister of the Economy Aburizal Bakrie said here Monday.
"Up to 2009 Japan's investment in Indonesia is expected to grow to US$22 billion or double its present investment," Aburizal said at a component market exhibition with participants including 44 Japanese businessmen.
He expressed optimism that the target of Japan's investment will be met as the first-round negotiation between the Indonesian and Japanese governments on the Economic Partnership Agreement (EPA) has run smoothly.
The first-round EPA talks reached agreement about goods and services trade, investment, manpower flow and cooperation in other fields. The second round EPA talks are scheduled to take place in January 2006.
Japan's investment from 1967 to 2004 accounted for about 19.5% of total foreign investment in Indonesia, making Japan the biggest investor in this country, according to Aburizal.
There are some 900 Japanese companies operating in Indonesia today with total investment of US$11 billion, and job opportunities for about 282,000 people. Their export value is expected to double in the coming five years. Their export and import value now account for 19.06% and 13.07% of the total value of Indonesia's export and import, respectively.
Aburizal expressed his hope in his written message read out by Rachmat Gobel, vice chairman of Kadin (The Jakarta Chamber of Commerce and Industry), that Japanese business circles will actively participate in the 2nd Infrastructure Summit to be held in Indonesia from February 9-11.
The interest of Japanese business circles in entering various infrastructure construction projects in Indonesia should be the same as the commitment of Japanese businessmen in entering the component industry in this country, Aburizal stated.
In the 2nd Infrastructure Summit, the Indonesian government will offer infrastructure construction as well as expansion projects, such as for highways, railroads, seaports, power plants and clean water installations.
(Asia Pulse/Antara)
JAKARTA - The Indonesian government expects Japan's investment and the value of export by Japanese companies in Indonesia to double in the coming five years, Coordinating Minister of the Economy Aburizal Bakrie said here Monday.
"Up to 2009 Japan's investment in Indonesia is expected to grow to US$22 billion or double its present investment," Aburizal said at a component market exhibition with participants including 44 Japanese businessmen.
He expressed optimism that the target of Japan's investment will be met as the first-round negotiation between the Indonesian and Japanese governments on the Economic Partnership Agreement (EPA) has run smoothly.
The first-round EPA talks reached agreement about goods and services trade, investment, manpower flow and cooperation in other fields. The second round EPA talks are scheduled to take place in January 2006.
Japan's investment from 1967 to 2004 accounted for about 19.5% of total foreign investment in Indonesia, making Japan the biggest investor in this country, according to Aburizal.
There are some 900 Japanese companies operating in Indonesia today with total investment of US$11 billion, and job opportunities for about 282,000 people. Their export value is expected to double in the coming five years. Their export and import value now account for 19.06% and 13.07% of the total value of Indonesia's export and import, respectively.
Aburizal expressed his hope in his written message read out by Rachmat Gobel, vice chairman of Kadin (The Jakarta Chamber of Commerce and Industry), that Japanese business circles will actively participate in the 2nd Infrastructure Summit to be held in Indonesia from February 9-11.
The interest of Japanese business circles in entering various infrastructure construction projects in Indonesia should be the same as the commitment of Japanese businessmen in entering the component industry in this country, Aburizal stated.
In the 2nd Infrastructure Summit, the Indonesian government will offer infrastructure construction as well as expansion projects, such as for highways, railroads, seaports, power plants and clean water installations.
(Asia Pulse/Antara)
Indonesia's Domestic Cement Sales Up 7.8% In Jan-Sept
JAKARTA, Oct 19 Asia Pulse - Cement sales on the domestic market totaled 24.02 million tons in the first nine months of this year, up 7.8 per cent from the same period last year.
A local daily quoted a report from state-owned cement maker PT Semen Gresik as saying that sales in Java alone totaled 15.27 million tons, up 10.3 per cent from a year ago.
However, exports fell to 4.92 million tons including clinker from 5.84 million tons in the same period.
The Semen Gresik group including Semen Gresik (JSX:SMGR), Semen Padang and Semen Tonasa accounted for the largest portion or 10.83 million tons of the domestic sales.
(ANTARA)
JAKARTA, Oct 19 Asia Pulse - Cement sales on the domestic market totaled 24.02 million tons in the first nine months of this year, up 7.8 per cent from the same period last year.
A local daily quoted a report from state-owned cement maker PT Semen Gresik as saying that sales in Java alone totaled 15.27 million tons, up 10.3 per cent from a year ago.
However, exports fell to 4.92 million tons including clinker from 5.84 million tons in the same period.
The Semen Gresik group including Semen Gresik (JSX:SMGR), Semen Padang and Semen Tonasa accounted for the largest portion or 10.83 million tons of the domestic sales.
(ANTARA)
INDONESIA'S CAR EXPORTS SHOOT UP 120 PCT IN JAN-SEPT
Thursday October 20, 2005, 1:00 pm
JAKARTA, Oct 20 Asia Pulse - Indonesia's car exports surged 120.8 per cent in the first nine months of this year from the same period last year, the Bisnis Indonesia daily reported Thursday.
Quoting data from the Association of Automotive Producers (Gakindo), the paper said exports of four wheelers totaled 66,515 units in the January-September period this year up from 30,119 units in the same period last year.
The exports in the nine month period exceeded exports of 45,990 units for the whole of 2004.
Dominating exports during that period was Toyota cars with exports totaling 59,164 units, followed by Suzuki cars with exports of 6,186 units and Honda cars totaling 1,087 units.
In September, car exports totaled 8,714 units, up from 5,271 units in the same month in 2004.
(ANTARA)
Thursday October 20, 2005, 1:00 pm
JAKARTA, Oct 20 Asia Pulse - Indonesia's car exports surged 120.8 per cent in the first nine months of this year from the same period last year, the Bisnis Indonesia daily reported Thursday.
Quoting data from the Association of Automotive Producers (Gakindo), the paper said exports of four wheelers totaled 66,515 units in the January-September period this year up from 30,119 units in the same period last year.
The exports in the nine month period exceeded exports of 45,990 units for the whole of 2004.
Dominating exports during that period was Toyota cars with exports totaling 59,164 units, followed by Suzuki cars with exports of 6,186 units and Honda cars totaling 1,087 units.
In September, car exports totaled 8,714 units, up from 5,271 units in the same month in 2004.
(ANTARA)
Indonesia's Crude Palm Oil Exports Rise In Jan-May
MEDAN, North Sumatra, Oct 20 Asia Pulse - Indonesia's exports of crude palm oil and its processed products reached 3.940 million tons in the January-May 2005 period, a businessman said.
"Until now India is still the main buyer of Indonesia's CPO and its products, which reached 1.144 million tons in the January-May 2005 period," Derom Bangun, chairman of the Indonesian Palm Oil Producers Association (GAPKI), said here on Wednesday.
He further said that exports to India during the period were higher than that in last year's corresponding period reaching 871,000 tons.
India's demand for the Indonesian commodity has continued to increase.
Indonesia's CPO and its processed products are also exported to Europe and China.
(ANTARA) A
MEDAN, North Sumatra, Oct 20 Asia Pulse - Indonesia's exports of crude palm oil and its processed products reached 3.940 million tons in the January-May 2005 period, a businessman said.
"Until now India is still the main buyer of Indonesia's CPO and its products, which reached 1.144 million tons in the January-May 2005 period," Derom Bangun, chairman of the Indonesian Palm Oil Producers Association (GAPKI), said here on Wednesday.
He further said that exports to India during the period were higher than that in last year's corresponding period reaching 871,000 tons.
India's demand for the Indonesian commodity has continued to increase.
Indonesia's CPO and its processed products are also exported to Europe and China.
(ANTARA) A
Indonesia Antam Sees 06 Rev Jump,Strong Ferronickel Sales
JAKARTA (Dow Jones)--Indonesia's nickel and gold miner PT Aneka Tambang (ANTM.JK) said Thursday that it expects total revenue to rise significantly next year thanks to a jump in sales from its ferronickel operations.
The state-owned mining company said ferronickel revenue may reach $290 million in 2006 due to robust output.
The company will produce an estimated 22,000 metric tons of ferronickel in 2006, as its third nickel smelter FeNi III is expected to start commercial operation in March 2006.
Antam expects to produce 7,400 tons ferronickel this year.
"If the average nickel price is at $6 per pound next year, we'll hope to make revenues of $290 million from ferronickel alone," said Cameron Tough, the company's investor relations officer.
That is higher than an expected of $114 million for ferronickel this year, based on an average nickel price of $7 per pound.
"Even if the nickel price is lower next year, we'll still make money," he added.
With robust output, Antam expects its total revenue to rise significantly in 2006, Tough said.
Antam expects revenue for this year to remain unchanged from 2004 at IDR3 trillion ($297 million) due to lower sales of ferronickel as the company had to shutdown its FeNi II nickel smelter for repairs.
In first half of this year, Antam booked revenue of IDR1.31 trillion, up from IDR1.29 trillion in the same period last year.
Antam sold 2,305 tons of ferronickel in the first half of this year, a 23% drop from the same period last year. But over the same period, the average price of Antam's ferronickel rose 11% to $6.85 per pound.
JAKARTA (Dow Jones)--Indonesia's nickel and gold miner PT Aneka Tambang (ANTM.JK) said Thursday that it expects total revenue to rise significantly next year thanks to a jump in sales from its ferronickel operations.
The state-owned mining company said ferronickel revenue may reach $290 million in 2006 due to robust output.
The company will produce an estimated 22,000 metric tons of ferronickel in 2006, as its third nickel smelter FeNi III is expected to start commercial operation in March 2006.
Antam expects to produce 7,400 tons ferronickel this year.
"If the average nickel price is at $6 per pound next year, we'll hope to make revenues of $290 million from ferronickel alone," said Cameron Tough, the company's investor relations officer.
That is higher than an expected of $114 million for ferronickel this year, based on an average nickel price of $7 per pound.
"Even if the nickel price is lower next year, we'll still make money," he added.
With robust output, Antam expects its total revenue to rise significantly in 2006, Tough said.
Antam expects revenue for this year to remain unchanged from 2004 at IDR3 trillion ($297 million) due to lower sales of ferronickel as the company had to shutdown its FeNi II nickel smelter for repairs.
In first half of this year, Antam booked revenue of IDR1.31 trillion, up from IDR1.29 trillion in the same period last year.
Antam sold 2,305 tons of ferronickel in the first half of this year, a 23% drop from the same period last year. But over the same period, the average price of Antam's ferronickel rose 11% to $6.85 per pound.
Shell to open Indonesia fuel station in retail lead
JAKARTA, Oct 19 (Reuters) - Shell will open its first petrol pump station in Indonesia next month, leading the way for the private sector and foreign firms to gain a foothold in the retail market, the company said on Wednesday.
Jakarta gave Shell, BP Plc , Malaysia's Petronas [PETR.UL] and five Indonesian firms temporary licences last year, paving the way for them to directly import fuel and sell to local customers, after revoking state oil firm Pertamina's monopoly.
"We are currently finalising construction of the pump station in West Java. We plan to open it next month," Wally Saleh, Shell Indonesia's spokesman said, adding that the company plans to boost its retail investments and will build more pump stations.
The first station will sell high-octane gasoline at market prices, he told Reuters.
Oil companies are eager for a stake in the retail market in Indonesia, the world's fourth-most populous nation, but will have to compete against Pertamina's subsidised prices for the most popular low-grade fuels.
Shell is also negotiating with Jakarta to sell low-grade fuels at the subsidised rates, Salleh said, adding the company wants the government to set very clear rules for the sale of state-controlled fuels.
Indonesia nearly doubled gasoline prices, increased diesel by 105 percent, and almost trebled kerosene prices this month in an effort to curb the debilitating effect of subsidies on its budget and rupiah currency.
Despite the increases, fuel rates in Indonesia are still among the lowest in Asia.
Pertamina said Indonesia would consume 64.8 million kilolitres (407.5 million barrels) of oil products in 2005, including 59.3 million kl (373 million barrels) under subsidies.
Oil products consumption in 2006 is seen at 65.6 million kl (413 million barrels), including 41.5 million kl (261 million barrels) under subsidy. (1 kl=6.289 barrel)
JAKARTA, Oct 19 (Reuters) - Shell will open its first petrol pump station in Indonesia next month, leading the way for the private sector and foreign firms to gain a foothold in the retail market, the company said on Wednesday.
Jakarta gave Shell, BP Plc , Malaysia's Petronas [PETR.UL] and five Indonesian firms temporary licences last year, paving the way for them to directly import fuel and sell to local customers, after revoking state oil firm Pertamina's monopoly.
"We are currently finalising construction of the pump station in West Java. We plan to open it next month," Wally Saleh, Shell Indonesia's spokesman said, adding that the company plans to boost its retail investments and will build more pump stations.
The first station will sell high-octane gasoline at market prices, he told Reuters.
Oil companies are eager for a stake in the retail market in Indonesia, the world's fourth-most populous nation, but will have to compete against Pertamina's subsidised prices for the most popular low-grade fuels.
Shell is also negotiating with Jakarta to sell low-grade fuels at the subsidised rates, Salleh said, adding the company wants the government to set very clear rules for the sale of state-controlled fuels.
Indonesia nearly doubled gasoline prices, increased diesel by 105 percent, and almost trebled kerosene prices this month in an effort to curb the debilitating effect of subsidies on its budget and rupiah currency.
Despite the increases, fuel rates in Indonesia are still among the lowest in Asia.
Pertamina said Indonesia would consume 64.8 million kilolitres (407.5 million barrels) of oil products in 2005, including 59.3 million kl (373 million barrels) under subsidies.
Oil products consumption in 2006 is seen at 65.6 million kl (413 million barrels), including 41.5 million kl (261 million barrels) under subsidy. (1 kl=6.289 barrel)
Wow I could just come here to follow up all the news about the Indonesian economy...
Biaya Peti Kemas Turun US$ 55
Hendi Suhendratio - detikcom
Jakarta - Pemerintah akhirnya menurunkan biaya peti kemas sebesar US$ 55 atau dari US$ 150 menjadi US$ 95 per kontainer 20 kaki.
"Terminal handling charges (THC) dan container handling charges (CHC), kombinasi kedua itu tidak boleh lebih dari US$ 95. Dan itu sudah kita putuskan," kata Menteri Perhubungan Hatta Radjasa kepada wartawan di Gedung Depkeu, Jalan Lapangan Banteng, Jakarta, Jumat (21/10/2005).
Biaya peti kemas ada dua jenis, yakni THC dan CHC. Tarif yang ditetapkan
pemerintah untuk THC maksimum 50 persen dari CHC. Sedangkan untuk CHC yang ditetapkan Pelindo saat ini adalah US$ 150.
Pemerintah akan segera memberlakukan keputusan tersebut. "Itu diberlakukan sekarang. Tapi kan surat keputusannya belum keluar. Mungkin Senin suratnya keluar," tambah Hatta.
Rencananya, pemerintah akan berdialog dengan operator pelabuhan untuk menentukan kombinasi THC dan CHC pada Senin (24/10/2005) pekan depan. Saat ini ada dua pilihan kombinasi, yakni US$ 75 untuk CHC dan US$ 25 untuk surcharge atau US$ 80 untuk CHC dan US$ 15 untuk surcharge.
Hatta mengaku, banyak pihak yang keberatan dengan pemangkasan biaya peti kemas ini karena akan kehilangan pendapatannya. "Memang ada yang keberatan. Tapi demi kepentingan nasional dan daya saing," tegas Hatta.
Ketua Asosiasi Pertekstilan Indonesia (API) Benny Sutrisno menambahkan, dengan penurunan biaya peti kemas ini, maka pengusaha tekstil dapat menghemat ongkos pelabuhan US$ 100 per bulan atau ekuivalen dengan gaji sebulan buruh.
Dengan perhitungan 6 juta kontainer per tahun atau 500 ribu kontainer per bulan, maka menurut Benny bisa menyelamatkan 250 ribu buruh.
Niat memangkas biaya peti kemas ini sebenarnya sudah diutarakan sebelum kenaikan BBM 1 Oktober lalu. Penurunan biaya ini merupakan bagian dari kompensasi bagi industri, khususnya pelabuhan, terkait kenaikan harga BBM 1 Oktober.
Dengan turunnya biaya penanganan peti kemas hingga US$ 50 per kontainer, diharapkan menguntungkan para eksportir hingga US$ 300 juta per tahun.
Penurunan biaya peti kemas ini juga menyebabkan level tarif peti kemas Indonesia sama dengan negara-negara lain di Asia, seperti Singapura dan Malaysia. (qom)
Hendi Suhendratio - detikcom
Jakarta - Pemerintah akhirnya menurunkan biaya peti kemas sebesar US$ 55 atau dari US$ 150 menjadi US$ 95 per kontainer 20 kaki.
"Terminal handling charges (THC) dan container handling charges (CHC), kombinasi kedua itu tidak boleh lebih dari US$ 95. Dan itu sudah kita putuskan," kata Menteri Perhubungan Hatta Radjasa kepada wartawan di Gedung Depkeu, Jalan Lapangan Banteng, Jakarta, Jumat (21/10/2005).
Biaya peti kemas ada dua jenis, yakni THC dan CHC. Tarif yang ditetapkan
pemerintah untuk THC maksimum 50 persen dari CHC. Sedangkan untuk CHC yang ditetapkan Pelindo saat ini adalah US$ 150.
Pemerintah akan segera memberlakukan keputusan tersebut. "Itu diberlakukan sekarang. Tapi kan surat keputusannya belum keluar. Mungkin Senin suratnya keluar," tambah Hatta.
Rencananya, pemerintah akan berdialog dengan operator pelabuhan untuk menentukan kombinasi THC dan CHC pada Senin (24/10/2005) pekan depan. Saat ini ada dua pilihan kombinasi, yakni US$ 75 untuk CHC dan US$ 25 untuk surcharge atau US$ 80 untuk CHC dan US$ 15 untuk surcharge.
Hatta mengaku, banyak pihak yang keberatan dengan pemangkasan biaya peti kemas ini karena akan kehilangan pendapatannya. "Memang ada yang keberatan. Tapi demi kepentingan nasional dan daya saing," tegas Hatta.
Ketua Asosiasi Pertekstilan Indonesia (API) Benny Sutrisno menambahkan, dengan penurunan biaya peti kemas ini, maka pengusaha tekstil dapat menghemat ongkos pelabuhan US$ 100 per bulan atau ekuivalen dengan gaji sebulan buruh.
Dengan perhitungan 6 juta kontainer per tahun atau 500 ribu kontainer per bulan, maka menurut Benny bisa menyelamatkan 250 ribu buruh.
Niat memangkas biaya peti kemas ini sebenarnya sudah diutarakan sebelum kenaikan BBM 1 Oktober lalu. Penurunan biaya ini merupakan bagian dari kompensasi bagi industri, khususnya pelabuhan, terkait kenaikan harga BBM 1 Oktober.
Dengan turunnya biaya penanganan peti kemas hingga US$ 50 per kontainer, diharapkan menguntungkan para eksportir hingga US$ 300 juta per tahun.
Penurunan biaya peti kemas ini juga menyebabkan level tarif peti kemas Indonesia sama dengan negara-negara lain di Asia, seperti Singapura dan Malaysia. (qom)
Interesting news, the Salim group is investing big time in India
See you next year: ‘Happy’ Benny
- No Mamata impact, claim Indonesian investor and government
A STAFF REPORTER
Santoso in his hotel (Sanjoy Chattopadhyaya) , Business Telegraph
Calcutta, Oct. 21: Yesterday, he witnessed Mamata Banerjee’s “tamasha” and was told to ignore it. Today, for about an hour Benny Santoso sat through a briefing by senior state officials on bandhs plaguing the state and was told not to be deterred by these.
At the end of the day, the Salim Group representative told The Telegraph: “We are happy with the way things progressed during our stay in the city. The agitation that we witnessed yesterday has not affected our plans in any way. We shall proceed with our investments in the state in the manner that has been planned and discussed.”
Finally, he promised, “I shall be back next year.”
The managing director of the West Bengal Industrial Development Corporation, Gopal Krishna, who spent the afternoon with Santoso and his team along with commerce and industry secretary Sabyasachi Sen, said the Salim Group had “no apprehensions” about investing in the state.
“Bandhs are not a factor for them,” Krishna said.
“They asked us all about it but we received no negative vibes from them. Neither were they shaken by yesterday’s agitation. They understand that problems do arise in big projects involving a lot of land. They are a multinational, they are used to tackling such issues.”
The Bengal government is expected to say this, nor will Santoso publicly admit having been influenced in a negative way by Mamata’s protest — flop, though, it was. But any investor coming from a different culture will be at least a little apprehensive. Whether this apprehension grows or not will depend on what Mamata does next. Today, she remained behind closed doors.
According to Sen, the Salim Group will prepare detailed reports on the other projects in the pipeline: the proposed health city, knowledge city, industrial township and an 87-km highway. “We would like to know what exactly the Salim Group has in mind about these projects, the finances involved and time frame they are looking at,” Sen said.
“We would also like a clearer picture of what these projects would finally look like.”
“If we know all this, it will also help us in scouting for the land,” Sen added. “We are not sure whether they want the land in one chunk for locating all their projects at one place or in separate plots. In our talks today we also explored whether it was possible to have the industrial township in one place and the other projects located elsewhere.”
Sen added that land would be allotted in phases as it would not be possible to “hand over 2,500 acres for the industrial township at one go”. Sen also said the Salim group was told that an alternative settlement colony would have to be built for those who are displaced by the projects.
Yesterday, the Salim Group had handed over a cheque for Rs 3.42 crores for the land for setting up the motorcycle factory in Uluberia. The remaining amount will be paid in two equal instalments in the next one year.
This afternoon the land transfer documents were handed over to Santoso. “The construction of the unit will begin next year,” Santoso said. “We are sure things will go well.”
Chief minister Buddhadeb Bhattacharjee, too, seemed satisfied with the way Santoso’s visit went. While leaving Writers’ Buildings, he did not have any harsh words for Mamata.
“What had to happen, has happened,” he signed off.
See you next year: ‘Happy’ Benny
- No Mamata impact, claim Indonesian investor and government
A STAFF REPORTER
Santoso in his hotel (Sanjoy Chattopadhyaya) , Business Telegraph
Calcutta, Oct. 21: Yesterday, he witnessed Mamata Banerjee’s “tamasha” and was told to ignore it. Today, for about an hour Benny Santoso sat through a briefing by senior state officials on bandhs plaguing the state and was told not to be deterred by these.
At the end of the day, the Salim Group representative told The Telegraph: “We are happy with the way things progressed during our stay in the city. The agitation that we witnessed yesterday has not affected our plans in any way. We shall proceed with our investments in the state in the manner that has been planned and discussed.”
Finally, he promised, “I shall be back next year.”
The managing director of the West Bengal Industrial Development Corporation, Gopal Krishna, who spent the afternoon with Santoso and his team along with commerce and industry secretary Sabyasachi Sen, said the Salim Group had “no apprehensions” about investing in the state.
“Bandhs are not a factor for them,” Krishna said.
“They asked us all about it but we received no negative vibes from them. Neither were they shaken by yesterday’s agitation. They understand that problems do arise in big projects involving a lot of land. They are a multinational, they are used to tackling such issues.”
The Bengal government is expected to say this, nor will Santoso publicly admit having been influenced in a negative way by Mamata’s protest — flop, though, it was. But any investor coming from a different culture will be at least a little apprehensive. Whether this apprehension grows or not will depend on what Mamata does next. Today, she remained behind closed doors.
According to Sen, the Salim Group will prepare detailed reports on the other projects in the pipeline: the proposed health city, knowledge city, industrial township and an 87-km highway. “We would like to know what exactly the Salim Group has in mind about these projects, the finances involved and time frame they are looking at,” Sen said.
“We would also like a clearer picture of what these projects would finally look like.”
“If we know all this, it will also help us in scouting for the land,” Sen added. “We are not sure whether they want the land in one chunk for locating all their projects at one place or in separate plots. In our talks today we also explored whether it was possible to have the industrial township in one place and the other projects located elsewhere.”
Sen added that land would be allotted in phases as it would not be possible to “hand over 2,500 acres for the industrial township at one go”. Sen also said the Salim group was told that an alternative settlement colony would have to be built for those who are displaced by the projects.
Yesterday, the Salim Group had handed over a cheque for Rs 3.42 crores for the land for setting up the motorcycle factory in Uluberia. The remaining amount will be paid in two equal instalments in the next one year.
This afternoon the land transfer documents were handed over to Santoso. “The construction of the unit will begin next year,” Santoso said. “We are sure things will go well.”
Chief minister Buddhadeb Bhattacharjee, too, seemed satisfied with the way Santoso’s visit went. While leaving Writers’ Buildings, he did not have any harsh words for Mamata.
“What had to happen, has happened,” he signed off.
Pemerintah mengeluarkan pecahan Rp 10.000 dan 50.000 yang baru
Uang Kertas Pecahan Rp50.000 dan Rp10.000 Tahun Emisi 2005 Resmi Diluncurkan
Bank Indonesia mulai hari ini secara resmi mengeluarkan dan mengedarkan uang kertas baru pecahan Rp50.000 dan Rp10.000 tahun emisi 2005 sebagai alat pembayaran yang sah di Indonesia. Uang pecahan Rp 50.000 tahun emisi 2005 bergambar utama Pahlawan Nasional I Gusti Ngurah Rai di bagian depan dan gambar Danau Beratan di Bedugul, Bali, pada bagian belakang. Sedangkan uang pecahan Rp 10.000 tahun emisi 2005 bergambar utama Pahlawan Nasional Sultan Mahmud Badaruddin II di bagian depan dan gambar Rumah Limas di Palembang pada bagian belakang.
“Kantor pusat maupun seluruh Kantor Bank Indonesia hari ini siap mendistribusikan uang kertas baru tersebut kepada masyarakat yang membutuhkan”, papar Deputi Gubernur Bank Indonesia, Maulana Ibrahim. Penerbitan uang kertas emisi baru tersebut merupakan implementasi kebijakan Bank Indonesia di bidang pengedaran uang yaitu untuk memenuhi kebutuhan uang rupiah di masyarakat dalam jumlah nominal yang cukup, jenis pecahan yang sesuai, tepat waktu dan dalam kondisi yang layak edar.
Uang kertas pecahan baru yang diterbitkan kali ini juga mengakomodasi kebutuhan para tuna netra dengan menyediakan kode tertentu (blind code) di samping kanan bagian muka uang. Disamping itu juga terdapat beberapa tambahan unsur pengaman yang lebih canggih dan mudah dikenali oleh masyarakat seperti benang pengaman yang jauh lebih lebar yang terlihat seperti dianyam (windowed), nomor seri yang berjenis teleskopik dan tidak simetris (asimetris) dan tinta berubah warna (OVI/optical variable ink).
Selain itu, seperti pada saat mengeluarkan uang kertas baru pecahan Rp100.000 dan Rp20.000 tahun emisi 2004, bersamaan dengan dikeluarkannya uang kertas baru pecahan Rp50.000 dan Rp10.000 tahun emisi 2005, Bank Indonesia juga mengeluarkan Uncut Banknotes (uang khusus yang belum dipotong/uang bersambung) dalam bentuk 2 lembar, 4 lembar dan 45 lembar dengan jumlah terbatas. Selain sebagai benda koleksi, Uncut Banknotes ini juga tetap berlaku sebagai alat pembayaran yang sah dan lazim dikeluarkan di berbagai negara sebagai penerbitan uang khusus.
Tujuan lain dikeluarkannya uang kertas baru ini adalah memperhatikan usia edar yang telah cukup lama pada pecahan sebelumnya yaitu 6 tahun untuk uang kertas pecahan Rp50.000 tahun emisi 1999 dan 7 tahun untuk pecahan Rp10.000 tahun emisi 1998. Walaupun uang kertas pecahan baru tersebut sudah resmi ditetapkan sebagai alat pembayaran yang sah, uang pecahan Rp50.000 Tahun Emisi 1999 dan Rp10.000 Tahun Emisi 1998 masih tetap berlaku sebagai alat pembayaran yang sah. Gambar dan ciri-ciri lengkap uang kertas dimaksud juga dapat dilihat di situs Bank Indonesia (www.bi.go.id).
Terkait dengan peningkatan kebutuhan uang kartal pada hari raya lebaran, Bank Indonesia telah siap pula memenuhi kebutuhan masyarakat akan hal tersebut. “Bank Indonesia bekerjasama dengan beberapa perusahaan penukaran uang pecahan kecil, telah pula siap mengantisipasi penukaran uang pecahan kecil di beberapa tempat strategis, termasuk Kantor Bank Indonesia”, tambah Maulana.
Jakarta, 20 Oktober 2005
BIRO HUBUNGAN MASYARAKAT
Rizal A. Djaafara
Kepala Biro
Detil ciri-ciri masing-masing pecahan: http://www.bi.go.id/web/id/Info+Terbaru/Hu...+urk+191005.htm
Uang Kertas Pecahan Rp50.000 dan Rp10.000 Tahun Emisi 2005 Resmi Diluncurkan
Bank Indonesia mulai hari ini secara resmi mengeluarkan dan mengedarkan uang kertas baru pecahan Rp50.000 dan Rp10.000 tahun emisi 2005 sebagai alat pembayaran yang sah di Indonesia. Uang pecahan Rp 50.000 tahun emisi 2005 bergambar utama Pahlawan Nasional I Gusti Ngurah Rai di bagian depan dan gambar Danau Beratan di Bedugul, Bali, pada bagian belakang. Sedangkan uang pecahan Rp 10.000 tahun emisi 2005 bergambar utama Pahlawan Nasional Sultan Mahmud Badaruddin II di bagian depan dan gambar Rumah Limas di Palembang pada bagian belakang.
“Kantor pusat maupun seluruh Kantor Bank Indonesia hari ini siap mendistribusikan uang kertas baru tersebut kepada masyarakat yang membutuhkan”, papar Deputi Gubernur Bank Indonesia, Maulana Ibrahim. Penerbitan uang kertas emisi baru tersebut merupakan implementasi kebijakan Bank Indonesia di bidang pengedaran uang yaitu untuk memenuhi kebutuhan uang rupiah di masyarakat dalam jumlah nominal yang cukup, jenis pecahan yang sesuai, tepat waktu dan dalam kondisi yang layak edar.
Uang kertas pecahan baru yang diterbitkan kali ini juga mengakomodasi kebutuhan para tuna netra dengan menyediakan kode tertentu (blind code) di samping kanan bagian muka uang. Disamping itu juga terdapat beberapa tambahan unsur pengaman yang lebih canggih dan mudah dikenali oleh masyarakat seperti benang pengaman yang jauh lebih lebar yang terlihat seperti dianyam (windowed), nomor seri yang berjenis teleskopik dan tidak simetris (asimetris) dan tinta berubah warna (OVI/optical variable ink).
Selain itu, seperti pada saat mengeluarkan uang kertas baru pecahan Rp100.000 dan Rp20.000 tahun emisi 2004, bersamaan dengan dikeluarkannya uang kertas baru pecahan Rp50.000 dan Rp10.000 tahun emisi 2005, Bank Indonesia juga mengeluarkan Uncut Banknotes (uang khusus yang belum dipotong/uang bersambung) dalam bentuk 2 lembar, 4 lembar dan 45 lembar dengan jumlah terbatas. Selain sebagai benda koleksi, Uncut Banknotes ini juga tetap berlaku sebagai alat pembayaran yang sah dan lazim dikeluarkan di berbagai negara sebagai penerbitan uang khusus.
Tujuan lain dikeluarkannya uang kertas baru ini adalah memperhatikan usia edar yang telah cukup lama pada pecahan sebelumnya yaitu 6 tahun untuk uang kertas pecahan Rp50.000 tahun emisi 1999 dan 7 tahun untuk pecahan Rp10.000 tahun emisi 1998. Walaupun uang kertas pecahan baru tersebut sudah resmi ditetapkan sebagai alat pembayaran yang sah, uang pecahan Rp50.000 Tahun Emisi 1999 dan Rp10.000 Tahun Emisi 1998 masih tetap berlaku sebagai alat pembayaran yang sah. Gambar dan ciri-ciri lengkap uang kertas dimaksud juga dapat dilihat di situs Bank Indonesia (www.bi.go.id).
Terkait dengan peningkatan kebutuhan uang kartal pada hari raya lebaran, Bank Indonesia telah siap pula memenuhi kebutuhan masyarakat akan hal tersebut. “Bank Indonesia bekerjasama dengan beberapa perusahaan penukaran uang pecahan kecil, telah pula siap mengantisipasi penukaran uang pecahan kecil di beberapa tempat strategis, termasuk Kantor Bank Indonesia”, tambah Maulana.
Jakarta, 20 Oktober 2005
BIRO HUBUNGAN MASYARAKAT
Rizal A. Djaafara
Kepala Biro
Detil ciri-ciri masing-masing pecahan: http://www.bi.go.id/web/id/Info+Terbaru/Hu...+urk+191005.htm
Indonesia steers toward recovery
By Donald Greenlees International Herald Tribune
THURSDAY, OCTOBER 27, 2005
JAKARTA Out on what is called Motor Main Street here, there are still reminders that foreign manufacturers once viewed Indonesia with the enthusiasm they usually reserve for China and India. Dotted along this dusty road in north Jakarta are auto manufacturing plants bearing names like Toyota, Honda and Daihatsu.
In the 1970s, Indonesia gained the distinction of being the first country in Asia where Japanese carmakers set up full assembly plants as a launching pad for cheap exports.
The factories still bustle with workers, but the numbers have thinned in recent years amid tougher competition from elsewhere in the region. Nowadays most of these factories serve Indonesia's own appetite for about half a million cars a year.
Yet even though many manufacturers, foreign and domestic, have eschewed Indonesia in recent years, blaming regulatory problems, poor law enforcement and rising wage bills, one is making a bet on the country.
Squeezed between the big names in automaking in a drab strip of metal sheds and low-rise office blocks, 1,000 employees of Indonesian-owned Inkoasku are busy supplying steel and alloy wheel hubs to major manufacturers.
The company is also exporting wheels to carmakers in Asia and Europe and has confirmed its commitment to stay in Indonesia by building a factory in West Java.
"In terms of quality we are better than India and China," said Inkoasku's chief executive, Hadi Kasim, explaining his faith in domestic manufacturing. "China can sell more cheaply, but the quality is not as good."
Kasim said that he paid a 7.5 percent tariff to import a type of steel that Indonesian steelworks do not make, and that government regulation foisted on him another layer of unnecessary costs. But he is one of a growing number of manufacturers and other investors who are gambling that Indonesia can still compete. This is despite the enduring problems of corruption and terrorism and sudden economic shocks, like a 22 percent plunge in the rupiah last August before it recovered.
The sentiment is borne out in figures showing a sustained rebound of investment that promises to underpin medium-term growth of 7 percent a year, according to World Bank forecasts. In an economic report released in early October, the bank highlighted figures showing that investment had grown at a rate of more than 10 percent for six consecutive quarters - the longest period since the late 1980s.
From January to August this year, the bank said capital goods imports grew by an "amazing" 36 percent.
In nominal terms, capital goods imports are as high as they were in 1995 to 1996, before the economic crisis.
"At the end of the day, what matters are results and so far the results are good," said Andrew Steer, the World Bank's country director for Indonesia.
"If someone had said to us a year ago: 'Would you be happy with investment growth of 15 percent over a year and investment to GDP rising from less than 20 to approaching 23 percent of GDP in the first year? Would you regard that as success?' I think almost everybody would say that is a pretty good first year's work," Steer said.
Indonesia's economic managers are winning credit from observers for taking some tough decisions to keep the economy on a sustainable growth track.
Most notable was a decision by the year-old government of President Susilo Bambang Yudhoyono to slash subsidies on gasoline, diesel and kerosene, which had ballooned with the world price of oil and were threatening to consume a third of the budget. It is a move Steer described as "a huge marker in the entire administration that they can make extremely tough decisions."
Gasoline prices were raised 88 percent and kerosene, used mainly by poor households for cooking, rose 186 percent despite fears of popular protests.
It was the second increase this year. Even so, Indonesians are buying their fuel at well below world prices.
There were also other, less-noticed reforms flagged along with the cuts to fuel subsidies. To soften the blow from more expensive fuel, the government announced packages of social assistance and business reforms.
Among the business measures were cuts to tariffs, transportation taxes and charges, and the removal of some red tape in customs.
The feared backlash against the rise in fuel prices failed to materialize, partly the result of direct financial compensation to 15.5 million poor households. Even another series of terrorist bombings in Bali on Oct. 1, the same day that fuel prices rose, only briefly ruffled financial markets.
Still, the challenges are great. The increase in fuel prices and rising inflation and interest rates have sapped some of the momentum from the economy. Bank Indonesia, the central bank, forecasts growth will slow to 5.7 percent from an expected 5.9 percent this year and has shaved forecasts for next year. Inflation is forecast to rise to 12 percent by year end, largely because of the central bank's inaction on interest rates last year.
Moreover, the government often struggles to have its agenda implemented because of bureaucratic inertia or resistance and the time it takes to get legislation through Parliament.
Critics say the president and economic ministers have not used the mandate given by voters last year decisively enough. Yudhoyono is the first president to be directly elected. Already there is talk of a reshuffle to dump members of the economic team.
In an interview, Aburizal Bakrie, the coordinating minister for economic affairs, responded to the critics by declaring: "I am fighting the bureaucracy." He vowed to push ahead with reforms to encourage business and investment and is negotiating a package that he hopes to announce in January. Among the items on his agenda are more tariff reductions.
The appointment of Bakrie, the former head of one of Indonesia's largest family-owned conglomerates, to the chief economic ministry initially raised eyebrows because of concerns over a potential conflict of interest. The businesses are now run by Bakrie's brothers and son.
But Bakrie trades on his business credentials to show he knows what needs to be done. Told of the complaints by Kasim, the wheel maker, over the tariff on steel imports, Bakrie immediately said he would abolish the tariff.
"I will be very bold about this," he said. "As a former businessman, I should say that there is no point in keeping a tariff in which there is no local industry."
By Donald Greenlees International Herald Tribune
THURSDAY, OCTOBER 27, 2005
JAKARTA Out on what is called Motor Main Street here, there are still reminders that foreign manufacturers once viewed Indonesia with the enthusiasm they usually reserve for China and India. Dotted along this dusty road in north Jakarta are auto manufacturing plants bearing names like Toyota, Honda and Daihatsu.
In the 1970s, Indonesia gained the distinction of being the first country in Asia where Japanese carmakers set up full assembly plants as a launching pad for cheap exports.
The factories still bustle with workers, but the numbers have thinned in recent years amid tougher competition from elsewhere in the region. Nowadays most of these factories serve Indonesia's own appetite for about half a million cars a year.
Yet even though many manufacturers, foreign and domestic, have eschewed Indonesia in recent years, blaming regulatory problems, poor law enforcement and rising wage bills, one is making a bet on the country.
Squeezed between the big names in automaking in a drab strip of metal sheds and low-rise office blocks, 1,000 employees of Indonesian-owned Inkoasku are busy supplying steel and alloy wheel hubs to major manufacturers.
The company is also exporting wheels to carmakers in Asia and Europe and has confirmed its commitment to stay in Indonesia by building a factory in West Java.
"In terms of quality we are better than India and China," said Inkoasku's chief executive, Hadi Kasim, explaining his faith in domestic manufacturing. "China can sell more cheaply, but the quality is not as good."
Kasim said that he paid a 7.5 percent tariff to import a type of steel that Indonesian steelworks do not make, and that government regulation foisted on him another layer of unnecessary costs. But he is one of a growing number of manufacturers and other investors who are gambling that Indonesia can still compete. This is despite the enduring problems of corruption and terrorism and sudden economic shocks, like a 22 percent plunge in the rupiah last August before it recovered.
The sentiment is borne out in figures showing a sustained rebound of investment that promises to underpin medium-term growth of 7 percent a year, according to World Bank forecasts. In an economic report released in early October, the bank highlighted figures showing that investment had grown at a rate of more than 10 percent for six consecutive quarters - the longest period since the late 1980s.
From January to August this year, the bank said capital goods imports grew by an "amazing" 36 percent.
In nominal terms, capital goods imports are as high as they were in 1995 to 1996, before the economic crisis.
"At the end of the day, what matters are results and so far the results are good," said Andrew Steer, the World Bank's country director for Indonesia.
"If someone had said to us a year ago: 'Would you be happy with investment growth of 15 percent over a year and investment to GDP rising from less than 20 to approaching 23 percent of GDP in the first year? Would you regard that as success?' I think almost everybody would say that is a pretty good first year's work," Steer said.
Indonesia's economic managers are winning credit from observers for taking some tough decisions to keep the economy on a sustainable growth track.
Most notable was a decision by the year-old government of President Susilo Bambang Yudhoyono to slash subsidies on gasoline, diesel and kerosene, which had ballooned with the world price of oil and were threatening to consume a third of the budget. It is a move Steer described as "a huge marker in the entire administration that they can make extremely tough decisions."
Gasoline prices were raised 88 percent and kerosene, used mainly by poor households for cooking, rose 186 percent despite fears of popular protests.
It was the second increase this year. Even so, Indonesians are buying their fuel at well below world prices.
There were also other, less-noticed reforms flagged along with the cuts to fuel subsidies. To soften the blow from more expensive fuel, the government announced packages of social assistance and business reforms.
Among the business measures were cuts to tariffs, transportation taxes and charges, and the removal of some red tape in customs.
The feared backlash against the rise in fuel prices failed to materialize, partly the result of direct financial compensation to 15.5 million poor households. Even another series of terrorist bombings in Bali on Oct. 1, the same day that fuel prices rose, only briefly ruffled financial markets.
Still, the challenges are great. The increase in fuel prices and rising inflation and interest rates have sapped some of the momentum from the economy. Bank Indonesia, the central bank, forecasts growth will slow to 5.7 percent from an expected 5.9 percent this year and has shaved forecasts for next year. Inflation is forecast to rise to 12 percent by year end, largely because of the central bank's inaction on interest rates last year.
Moreover, the government often struggles to have its agenda implemented because of bureaucratic inertia or resistance and the time it takes to get legislation through Parliament.
Critics say the president and economic ministers have not used the mandate given by voters last year decisively enough. Yudhoyono is the first president to be directly elected. Already there is talk of a reshuffle to dump members of the economic team.
In an interview, Aburizal Bakrie, the coordinating minister for economic affairs, responded to the critics by declaring: "I am fighting the bureaucracy." He vowed to push ahead with reforms to encourage business and investment and is negotiating a package that he hopes to announce in January. Among the items on his agenda are more tariff reductions.
The appointment of Bakrie, the former head of one of Indonesia's largest family-owned conglomerates, to the chief economic ministry initially raised eyebrows because of concerns over a potential conflict of interest. The businesses are now run by Bakrie's brothers and son.
But Bakrie trades on his business credentials to show he knows what needs to be done. Told of the complaints by Kasim, the wheel maker, over the tariff on steel imports, Bakrie immediately said he would abolish the tariff.
"I will be very bold about this," he said. "As a former businessman, I should say that there is no point in keeping a tariff in which there is no local industry."
Indonesia export of NR expected to overshoot target
Wednesday, October 26, 2005
JAKARTA (Asia Pulse) -- Indonesia's exports of natural rubber are predicted to be worth about US$2.5 billion this year, overshooting the previously set target by 40 percent, the Bisnis Indonesia reported Tuesday.
Deputy chairman of the Indonesian rubber companies (Gapkindo) Asril Sutan Amir said that in the three months until the end of this year, the country has an opportunity to export up to 400,000 tons of natural rubber valued at
US$450 million.
In the first nine months of this year exports already reached the year's target of US$2 billion, Asril said.
He said the price of natural rubber was stable at Rp162,000-Rp163,000 per kg and the price even peaked at Rp165,000 per kg earlier this month.
The price of natural rubber is not expected to decline as long as the crude oil prices remain high, Asril said.
Wednesday, October 26, 2005
JAKARTA (Asia Pulse) -- Indonesia's exports of natural rubber are predicted to be worth about US$2.5 billion this year, overshooting the previously set target by 40 percent, the Bisnis Indonesia reported Tuesday.
Deputy chairman of the Indonesian rubber companies (Gapkindo) Asril Sutan Amir said that in the three months until the end of this year, the country has an opportunity to export up to 400,000 tons of natural rubber valued at
US$450 million.
In the first nine months of this year exports already reached the year's target of US$2 billion, Asril said.
He said the price of natural rubber was stable at Rp162,000-Rp163,000 per kg and the price even peaked at Rp165,000 per kg earlier this month.
The price of natural rubber is not expected to decline as long as the crude oil prices remain high, Asril said.
Indonesia's Telkom To Launch Satellite Next Month
JAKARTA, Oct 27 Asia Pulse - State-owned telco PT Telkom will launch its 'Telkom 2' satellite on 10 Nov 2005 to replace 'Palapa B4' satellite.
"The new satellite will be launched in Kourou, French Guiana, on November 9 or November 10, 2005 in Indonesia," PT Telkom Deputy President Director Garuda Sugardo told a media gathering on Wednesday.
He said "Telkom 2" satellite had arrived at the launching site and it would be launched by Ariane-5 ECA rocket booster.
Sugardo said there had been a delay in the launching of the satellite due to various technical constraints such as the lack of readiness of co-passenger, sub-system anomalies and damages to Ariane rocket booster.
"Telkom 2 satellite is part of Indonesia's strategic telecommunications networks. It is a national project," he said, adding that President Susilo Bambang Yudhoyono would witness the launching through a satellite monitor in Cibinong (East Jakarta).
Weighing 1,975 km with 24 transponders, Telkom 2 will be stationed in its orbit at 118 degrees of the east latitude and will operate for 15 years.
It is estimated that the launching of the satellite will cost US$125-$200 million.
About 70 percent of Telkom 2 capacity would be used to meet the demand of regional market and 30 percent would be used by Telkom to provide services for its customers.
Telkom has launched eight satellites since 1968.
(ANTARA)
JAKARTA, Oct 27 Asia Pulse - State-owned telco PT Telkom will launch its 'Telkom 2' satellite on 10 Nov 2005 to replace 'Palapa B4' satellite.
"The new satellite will be launched in Kourou, French Guiana, on November 9 or November 10, 2005 in Indonesia," PT Telkom Deputy President Director Garuda Sugardo told a media gathering on Wednesday.
He said "Telkom 2" satellite had arrived at the launching site and it would be launched by Ariane-5 ECA rocket booster.
Sugardo said there had been a delay in the launching of the satellite due to various technical constraints such as the lack of readiness of co-passenger, sub-system anomalies and damages to Ariane rocket booster.
"Telkom 2 satellite is part of Indonesia's strategic telecommunications networks. It is a national project," he said, adding that President Susilo Bambang Yudhoyono would witness the launching through a satellite monitor in Cibinong (East Jakarta).
Weighing 1,975 km with 24 transponders, Telkom 2 will be stationed in its orbit at 118 degrees of the east latitude and will operate for 15 years.
It is estimated that the launching of the satellite will cost US$125-$200 million.
About 70 percent of Telkom 2 capacity would be used to meet the demand of regional market and 30 percent would be used by Telkom to provide services for its customers.
Telkom has launched eight satellites since 1968.
(ANTARA)
Indonesia boosts daily output of oil and gas
Offshore staff
(Asia-Pacific) - Indonesian President Susilo Bambang Yudhoyono will launch $1.2 billion worth of 13 oil and gas projects this Friday, which will add some 53,800 b/d and 1.53 bcf/d of natural gas to the country's daily output by next year.
Included are the development of 12 oil fields and a pipeline, involving global investors BP, Total and Petrochina, says Kardaya Warnika, chairman of the Upstream Oil and Gas Regulatory Agency.
Indonesia is expected to increase its oil production by 5% to 1.11 MMb/d next year from 1.075 MMb/d this year. The country produced 1.52 MMb/d in 1999.
Some of the fields have been producing since July 2004. The latest would be a 15,000 b/d field at Salawati in Papua province, which would start producing next month under the Indonesian state-owned oil and gas company, PT Pertamina, and PetroChina under a joint operation body (JOB) contract.
The other fields include 9,500 b/d of oil, which LPG producer Betara III began producing in August under PetroChina. Kodeco's KE-40 field in Bangkalan, East Java, and Pertamina-Medco's JOB in Tiaka, Central Sulawesi, will produce 5,000 b/d each.
10/26/05
Offshore staff
(Asia-Pacific) - Indonesian President Susilo Bambang Yudhoyono will launch $1.2 billion worth of 13 oil and gas projects this Friday, which will add some 53,800 b/d and 1.53 bcf/d of natural gas to the country's daily output by next year.
Included are the development of 12 oil fields and a pipeline, involving global investors BP, Total and Petrochina, says Kardaya Warnika, chairman of the Upstream Oil and Gas Regulatory Agency.
Indonesia is expected to increase its oil production by 5% to 1.11 MMb/d next year from 1.075 MMb/d this year. The country produced 1.52 MMb/d in 1999.
Some of the fields have been producing since July 2004. The latest would be a 15,000 b/d field at Salawati in Papua province, which would start producing next month under the Indonesian state-owned oil and gas company, PT Pertamina, and PetroChina under a joint operation body (JOB) contract.
The other fields include 9,500 b/d of oil, which LPG producer Betara III began producing in August under PetroChina. Kodeco's KE-40 field in Bangkalan, East Java, and Pertamina-Medco's JOB in Tiaka, Central Sulawesi, will produce 5,000 b/d each.
10/26/05
Now the govt has more money in its disposal after getting rid of fuel subsidies, on next year's budget, govt will spend more money for expansionary fiscal policy to create jobs and accelerate economic growth:
APBN 2006 lebih ekspansif
JAKARTA: Wapres Jusuf Kalla memproyeksikan APBN 2006 yang lebih ekspansif dalam penghematan maupun penerimaan negara guna mendorong dan menciptakan lapangan kerja, termasuk mencapai target pertumbuhan 6,1%. Kepala Badan Pengkajian Ekonomi Keuangan dan Kerjasama Internasional (Bapekki) Anggito Abimanyu mengatakan ada dua hal yang menyebabkan APBN 2006 bisa lebih ekspansif.
Pertama, bisa berhemat karena belanja subsidi BBM dapat dikurangi signifikan. Kedua, penerimaan negara cukup stabil pada 2006 sehingga ada ruang bagi pemerintah untuk lebih ekspansif memotori penciptaan lapangan kerja melalui pembangunan infrastruktur.
"Dalam pertemuan tadi Wapres memberi arahan supaya kita agresif lagi dalam ekspansi APBN. Beliau ingin ada tambahan ekspansi ekonomi," kata Anggito yang bersama Menkeu Jusuf Anwar diterima Wapres Jusuf Kalla di Istana Wapres kemarin.
Anggito menyatakan pada 2006 nanti akan lebih ekspansif karena subsidi tertentu, konsumsi tertentu dan konsekwensi laba Pertamina yang besar bisa diambil sebagai bagian dari penerimaan.
1,1% PDB
Sementara itu, wakil pemerintah dan Panitia Anggaran DPR dalam Panitia Kerja (Panja) A tadi malam menyepakati defisit anggaran RAPBN 2006 sebesar 1,1% dari PDB.
Menkeu Jusuf Anwar mengatakan peningkatan defisit hingga mencapai 1,1% disebabkan adanya usulan tambahan belanja sebesar Rp5 triliun yang akan dialokasikan untuk sektor kesehatan, pendidikan, pertahanan keamanan, pertanian, dan perhubungan.
Dia menambahkan defisit 1,1% itu diharapkan dapat menjamin pertumbuhan PDB sebesar 6,1% dan meningkatkan jumlah lapangan kerja.
Sebelumnya hasil Panja A, setelah digabungkan dengan hasil Panja B menurunkan angka defisit menjadi sekitar 0,6% dari PDB 2006.
Amin Said Husni, Ketua Panja A, mengatakan potensi penurunan defisit anggaran dalam RAPBN 2006 tersebut didapatkan setelah Panja B menemukan 'kesalahan penempatan' alokasi dana untuk tiga BUMN sekitar Rp350 miliar di antaranya untuk PT KAI dalam belanja negara.
"Sekalipun jumlahnya tidak terlalu besar tapi secara persentase [dari PDB] bisa turun jadi 0,6% dari PDB. Semestinya masuk dalam kategori penyertaan modal pemerintah dalam perusahaan negara [BUMN]."
Oleh Erwin Nurdin & Lutfi Zaenudin
Bisnis Indonesia
APBN 2006 lebih ekspansif
JAKARTA: Wapres Jusuf Kalla memproyeksikan APBN 2006 yang lebih ekspansif dalam penghematan maupun penerimaan negara guna mendorong dan menciptakan lapangan kerja, termasuk mencapai target pertumbuhan 6,1%. Kepala Badan Pengkajian Ekonomi Keuangan dan Kerjasama Internasional (Bapekki) Anggito Abimanyu mengatakan ada dua hal yang menyebabkan APBN 2006 bisa lebih ekspansif.
Pertama, bisa berhemat karena belanja subsidi BBM dapat dikurangi signifikan. Kedua, penerimaan negara cukup stabil pada 2006 sehingga ada ruang bagi pemerintah untuk lebih ekspansif memotori penciptaan lapangan kerja melalui pembangunan infrastruktur.
"Dalam pertemuan tadi Wapres memberi arahan supaya kita agresif lagi dalam ekspansi APBN. Beliau ingin ada tambahan ekspansi ekonomi," kata Anggito yang bersama Menkeu Jusuf Anwar diterima Wapres Jusuf Kalla di Istana Wapres kemarin.
Anggito menyatakan pada 2006 nanti akan lebih ekspansif karena subsidi tertentu, konsumsi tertentu dan konsekwensi laba Pertamina yang besar bisa diambil sebagai bagian dari penerimaan.
1,1% PDB
Sementara itu, wakil pemerintah dan Panitia Anggaran DPR dalam Panitia Kerja (Panja) A tadi malam menyepakati defisit anggaran RAPBN 2006 sebesar 1,1% dari PDB.
Menkeu Jusuf Anwar mengatakan peningkatan defisit hingga mencapai 1,1% disebabkan adanya usulan tambahan belanja sebesar Rp5 triliun yang akan dialokasikan untuk sektor kesehatan, pendidikan, pertahanan keamanan, pertanian, dan perhubungan.
Dia menambahkan defisit 1,1% itu diharapkan dapat menjamin pertumbuhan PDB sebesar 6,1% dan meningkatkan jumlah lapangan kerja.
Sebelumnya hasil Panja A, setelah digabungkan dengan hasil Panja B menurunkan angka defisit menjadi sekitar 0,6% dari PDB 2006.
Amin Said Husni, Ketua Panja A, mengatakan potensi penurunan defisit anggaran dalam RAPBN 2006 tersebut didapatkan setelah Panja B menemukan 'kesalahan penempatan' alokasi dana untuk tiga BUMN sekitar Rp350 miliar di antaranya untuk PT KAI dalam belanja negara.
"Sekalipun jumlahnya tidak terlalu besar tapi secara persentase [dari PDB] bisa turun jadi 0,6% dari PDB. Semestinya masuk dalam kategori penyertaan modal pemerintah dalam perusahaan negara [BUMN]."
Oleh Erwin Nurdin & Lutfi Zaenudin
Bisnis Indonesia
Tuesday November 1, 12:30 PM
Indonesia To Be Self-Sufficient In Rice This Year
JAKARTA, Nov 1 Asia Pulse - The ministry of agriculture estimated that Indonesia would again become self-sufficient in rice in 2005 like it was in 1984 and 2004 with a production of 53.98 million tons of dried unhulled rice.
Secretary of the Directorate General of Food Crops of the Ministry of Agriculture Sutarto Ali Muso said in Jakarta on Monday that although this year's rice production declined by 103,878 tons or 0.19 per cent compared to last year's, the rice supply was adequate to meet domestic rice consumption, and there was even a surplus.
"Therefore we are optimistic that Indonesia will again become self-sufficient in rice in 2005," he said.
Sutarto added that the decline in the national rice production in 2005 was caused by natural phenomena like the tsunami, drought and a shift in the second planting season in several provinces in 2005.
He said rice production declined in Aceh, North Sumatera, Riau, West Java, Central Java, West Nusa Tenggara, East Nusa Tenggara and Central Kalimantan.
In the meantime, rice growing areas have also declined compared to last year's, by 122,073 ha, or 1.02 per cent, but rice productivity increased by 0.86 pct, or 0.39 quintal per ha.
Sutarto said while it was difficult to reach a rice production of 54.25 million tons, as predicted by the Central Bureau of Statistics, the agriculture ministry was optimistic rice production would reach 54 million tons in 2005, especially when fertilizer supplies are adequate, pest attacks are practically non-existent, and floods are infrequent.
With regard to other foodstuffs like corn, soybean, ground nut and cassava in 2005, he said production has increased.
Corn production this year was estimated to reach 12.013 million tons, exceeding the projected 12 million tons, or up from 788,464 tons last year while soybean output is forecast at 797,135 tons, an increase of 73,652 tons.
In the meantime, this year's ground nut output was estimated to rise by 138 tons to 837,633 tons and casssava up by 34,695 tons to 19.45 million tons.
(ANTARA)
Indonesia To Be Self-Sufficient In Rice This Year
JAKARTA, Nov 1 Asia Pulse - The ministry of agriculture estimated that Indonesia would again become self-sufficient in rice in 2005 like it was in 1984 and 2004 with a production of 53.98 million tons of dried unhulled rice.
Secretary of the Directorate General of Food Crops of the Ministry of Agriculture Sutarto Ali Muso said in Jakarta on Monday that although this year's rice production declined by 103,878 tons or 0.19 per cent compared to last year's, the rice supply was adequate to meet domestic rice consumption, and there was even a surplus.
"Therefore we are optimistic that Indonesia will again become self-sufficient in rice in 2005," he said.
Sutarto added that the decline in the national rice production in 2005 was caused by natural phenomena like the tsunami, drought and a shift in the second planting season in several provinces in 2005.
He said rice production declined in Aceh, North Sumatera, Riau, West Java, Central Java, West Nusa Tenggara, East Nusa Tenggara and Central Kalimantan.
In the meantime, rice growing areas have also declined compared to last year's, by 122,073 ha, or 1.02 per cent, but rice productivity increased by 0.86 pct, or 0.39 quintal per ha.
Sutarto said while it was difficult to reach a rice production of 54.25 million tons, as predicted by the Central Bureau of Statistics, the agriculture ministry was optimistic rice production would reach 54 million tons in 2005, especially when fertilizer supplies are adequate, pest attacks are practically non-existent, and floods are infrequent.
With regard to other foodstuffs like corn, soybean, ground nut and cassava in 2005, he said production has increased.
Corn production this year was estimated to reach 12.013 million tons, exceeding the projected 12 million tons, or up from 788,464 tons last year while soybean output is forecast at 797,135 tons, an increase of 73,652 tons.
In the meantime, this year's ground nut output was estimated to rise by 138 tons to 837,633 tons and casssava up by 34,695 tons to 19.45 million tons.
(ANTARA)
Bank Indonesia sees Q4 GDP growth at 5.5-6.0 pct y/y
JAKARTA, Nov 1 (Reuters) - Indonesia's gross domestic product (GDP) is expected to grow by 5.5-6.0 percent in the fourth quarter of this year compared to the same period in 2004, Bank Indonesia said on Tuesday.
The monetary authority said the economy might have grown by 5.2-5.7 percent in the third quarter.
"Looking ahead, with unconducive external conditions and the potential for disruptions that could cause macroeconomic instability, Bank Indonesia will keep its tight bias monetary policy," The central bank said in a statement.
The bank also said that although its attempt to keep inflation under control might affect the financial sector in the short run, the move was necessary to maintain macroeconomic stability and the acceleration of economic growth in the long term.
Bank Indonesia had increased the target rate (BI rate) for its one-month certificate (SBI), by 100 basis points in October, the biggest hike since the monetary authority introduced the rate in July.
On September 6, Bank Indonesia jacked up the BI rate by 50 basis points, a week after raising it by 75 basis points, as it tried to support the ailing rupiah currency.
JAKARTA, Nov 1 (Reuters) - Indonesia's gross domestic product (GDP) is expected to grow by 5.5-6.0 percent in the fourth quarter of this year compared to the same period in 2004, Bank Indonesia said on Tuesday.
The monetary authority said the economy might have grown by 5.2-5.7 percent in the third quarter.
"Looking ahead, with unconducive external conditions and the potential for disruptions that could cause macroeconomic instability, Bank Indonesia will keep its tight bias monetary policy," The central bank said in a statement.
The bank also said that although its attempt to keep inflation under control might affect the financial sector in the short run, the move was necessary to maintain macroeconomic stability and the acceleration of economic growth in the long term.
Bank Indonesia had increased the target rate (BI rate) for its one-month certificate (SBI), by 100 basis points in October, the biggest hike since the monetary authority introduced the rate in July.
On September 6, Bank Indonesia jacked up the BI rate by 50 basis points, a week after raising it by 75 basis points, as it tried to support the ailing rupiah currency.
Indonesia Can Achieve 6.2 PCT Economic Growth in 2006: Gapmmi
JAKARTA, Nov 1 Asia Pulse - The Association of Indonesian Food and Beverage Producers (GAPMMI) believed that Indonesia's economic growth may reach 6.2 per cent in 2006, considering that in that year the government will build infrastructure to create more job opportunities which, in turn, would increase purchasing power and industrial performance.
These remarks were made by GAPMMI general chairman Thomas Dharmawan in Jakarta on Monday when commenting on the 2006 Draft State Budget which assumed the country's economic growth at 6.2 per cent, the inflation rate at eight per cent, the exchange rate of the rupiah at Rp9,900 per US dollar, and the price of oil at US$57 per barrel.
"In fact there is no direct link between the State Budget and the business world," Thomas said.
But he added that under the Draft State Budget assumption, the government at least has a reference in controlling the inflation which has a strong effect on credit interest rates.
"We hope the inflation could be checked, if possible lowered compared to that in 2005, so that the credit interest rate could also be lowered enabling businesses to move more freely," he said.
Thomas also said that the assumption of the rupiah exchange rate at Rp9.900 per US dollar was quite realistic since the value of the rupiah has now also reached this level.
He hoped that in 2006, the exchange rate of the rupiah would become more stable, especially now that the government has started lifting its fuel oil subsidy in stages.
By lifting the fuel oil subsidy, he said, the government would have money for boosting development efforts, especially in the infrastructure sector, so that many people would be able to get a job in the labour-intensive sector.
"If the government has the money for building infrastructure, more jobs would be open to the people. It is here the businesses should focus their attention, because with more job opportunities, more people will no longer be unemployed and have money with which their purchasing power will increase, which would eventually increase industrial performance in the country," Thomas said.
But he also hoped that industrial performance would improve significantly, and that the government should not issue contra-productive policies like boosting non-tax state revenue.
(ANTARA)
JAKARTA, Nov 1 Asia Pulse - The Association of Indonesian Food and Beverage Producers (GAPMMI) believed that Indonesia's economic growth may reach 6.2 per cent in 2006, considering that in that year the government will build infrastructure to create more job opportunities which, in turn, would increase purchasing power and industrial performance.
These remarks were made by GAPMMI general chairman Thomas Dharmawan in Jakarta on Monday when commenting on the 2006 Draft State Budget which assumed the country's economic growth at 6.2 per cent, the inflation rate at eight per cent, the exchange rate of the rupiah at Rp9,900 per US dollar, and the price of oil at US$57 per barrel.
"In fact there is no direct link between the State Budget and the business world," Thomas said.
But he added that under the Draft State Budget assumption, the government at least has a reference in controlling the inflation which has a strong effect on credit interest rates.
"We hope the inflation could be checked, if possible lowered compared to that in 2005, so that the credit interest rate could also be lowered enabling businesses to move more freely," he said.
Thomas also said that the assumption of the rupiah exchange rate at Rp9.900 per US dollar was quite realistic since the value of the rupiah has now also reached this level.
He hoped that in 2006, the exchange rate of the rupiah would become more stable, especially now that the government has started lifting its fuel oil subsidy in stages.
By lifting the fuel oil subsidy, he said, the government would have money for boosting development efforts, especially in the infrastructure sector, so that many people would be able to get a job in the labour-intensive sector.
"If the government has the money for building infrastructure, more jobs would be open to the people. It is here the businesses should focus their attention, because with more job opportunities, more people will no longer be unemployed and have money with which their purchasing power will increase, which would eventually increase industrial performance in the country," Thomas said.
But he also hoped that industrial performance would improve significantly, and that the government should not issue contra-productive policies like boosting non-tax state revenue.
(ANTARA)
I believe this thread is very good to have all kinds of economic news from our country. I hope other people will donate more economic/business news in this thread 
We must have news from all kinds of different perspectives, to have balance. This way will make us more mature and smarter.
http://www.thejakartapost.com/detaillatest...01195027&irec=0
I feel sorry for my people now
More and more unemployements................
More and more poor people......................
I hope they keep strong and not make any kinds of riots on the street. If not, the situation will worsen
We must have news from all kinds of different perspectives, to have balance. This way will make us more mature and smarter.
http://www.thejakartapost.com/detaillatest...01195027&irec=0
QUOTE
Inflation hits record high at 17.89%
The Jakarta Post, November 2, 2005
JAKARTA (JP): The average 126.6 percent fuel price hike last month has turned out very costly for the country's economy, with an official report shows inflation skyrocketed to a six-year high at 17.89 percent and unemployment also raised.
Surging inflation has also prompted the central bank to increase its key interest rate sharply to 12.25 percent, which could hurt consumption and businesses alike.
From a political perspective, the worsening economic situation will certainly put the government's economic team under pressure prior to a possible Cabinet reshuffle.
The Central Statistics Agency (BPS) reported on Tuesday that the country's Consumer Price Index (CPI) increased by 8.7 percent in October from September, or up 17.89 percent from October last year. Inflation during the 10 months has accumulated to 15.65 percent.
The figures are higher than Bank Indonesia's (BI) estimate of a 5 percent inflation for October and has even surpassed its full-year forecast of 14 percent.
"This month's inflation was particularly due to the rise in transportation and fuel costs," BPS chief Choril Maksum said.
"The rise in gasoline, kerosene and diesel fuel prices contributed to 3.47 percent of October's inflation, while transportation costs 2.08 percent and the rest being the usual inflationary pressures ahead of the Idul Fitri holiday season."
BPS also reported that open unemployment in the country had increased by 1.3 million people from August last year to October, reaching 10.84 percent of the country's 106.8 million workforce, indicating how the rise was caused by significant lay-offs atlabor-intensive industries hurt by the fuel price hike.
In light of the rising inflation, BI decided to raise its benchmark BI Rate by 125 basis points to 12.25 percent, continuing its recent rate hikes within the year to contain inflation and a slumping rupiah.
The rate hike caused the Jakarta Stock Exchange Index to close lower 0.12 percent to 1,064.953, while the rupiah ended flat at Rp 10,115.
Upon hearing the BPS report, President Susilo Bambang Yudhoyono was very shocked, presidential spokesman Andi Malaranggeng said.
"President Susilo is very concerned with the inflation issue. The president and the economic ministers will take immediate measures to ease the inflation," he said. (**)
The Jakarta Post, November 2, 2005
JAKARTA (JP): The average 126.6 percent fuel price hike last month has turned out very costly for the country's economy, with an official report shows inflation skyrocketed to a six-year high at 17.89 percent and unemployment also raised.
Surging inflation has also prompted the central bank to increase its key interest rate sharply to 12.25 percent, which could hurt consumption and businesses alike.
From a political perspective, the worsening economic situation will certainly put the government's economic team under pressure prior to a possible Cabinet reshuffle.
The Central Statistics Agency (BPS) reported on Tuesday that the country's Consumer Price Index (CPI) increased by 8.7 percent in October from September, or up 17.89 percent from October last year. Inflation during the 10 months has accumulated to 15.65 percent.
The figures are higher than Bank Indonesia's (BI) estimate of a 5 percent inflation for October and has even surpassed its full-year forecast of 14 percent.
"This month's inflation was particularly due to the rise in transportation and fuel costs," BPS chief Choril Maksum said.
"The rise in gasoline, kerosene and diesel fuel prices contributed to 3.47 percent of October's inflation, while transportation costs 2.08 percent and the rest being the usual inflationary pressures ahead of the Idul Fitri holiday season."
BPS also reported that open unemployment in the country had increased by 1.3 million people from August last year to October, reaching 10.84 percent of the country's 106.8 million workforce, indicating how the rise was caused by significant lay-offs atlabor-intensive industries hurt by the fuel price hike.
In light of the rising inflation, BI decided to raise its benchmark BI Rate by 125 basis points to 12.25 percent, continuing its recent rate hikes within the year to contain inflation and a slumping rupiah.
The rate hike caused the Jakarta Stock Exchange Index to close lower 0.12 percent to 1,064.953, while the rupiah ended flat at Rp 10,115.
Upon hearing the BPS report, President Susilo Bambang Yudhoyono was very shocked, presidential spokesman Andi Malaranggeng said.
"President Susilo is very concerned with the inflation issue. The president and the economic ministers will take immediate measures to ease the inflation," he said. (**)
I feel sorry for my people now
More and more unemployements................
More and more poor people......................
I hope they keep strong and not make any kinds of riots on the street. If not, the situation will worsen
Inflation is short-term pain for long-term gain
Indonesia raises rates after inflation surges
By Shawn Donnan in Jakarta
Tue Nov 1, 2:55 AM ET
Indonesia's central bank moved to increase its benchmark short-term interest rate by 125 basis points to 12.25 per cent on Tuesday after official statistics showed inflation rose by a much higher than expected 17.9 per cent in October.
Economists had predicted a surge in inflation following a move by the government of Susilo Bambang Yudhoyono to increase fuel prices by an average 126 per cent on October 1 in order to rein in ballooning fuel subsidies that is pressuring Jakarta's budget.
But the size of Tuesday's rate increase and the worse than expected inflation data - which saw the consumer price index notch its biggest increase in six years - caught economist by surprise. They also raised concerns that the October 1 fuel price increase, lauded at the time for its boldness, may have been too aggressive for Indonesia's economy to absorb.
The Indonesian rupiah slumped 0.8 per cent to a four-week low of Rp10,190 to the dollar shortly after the data was released, while the Jakarta Stock Exchange's main index also fell almost 1 per cent in quiet pre-holiday trade. Indonesia's financial markets are due to shut until November 8 for the Eid holidays marking the end of Ramadan.
Aburizal Bakrie, chief economic minister, said the surge in October inflation was a "one-off" and would not derail the economy, which the government has predicted will grow by 6 per cent this year. Inflation would fall "drastically" in November and December, Mr Bakrie predicted, and settle around 7-8 per cent in 2006.
But Fauzi Ichsan, Standard Chartered's lead economist in Jakarta, said the combination of the rate increase and the surge in inflation put additional pressure on the government to increase infrastructure spending and deliver needed reforms to attract foreign investment.
"One of the concerns was that the economic cost of raising fuel prices so sharply would outweigh the fiscal benefit," Mr Ichsan said. "That's why it's very important that the government accelerate the infrastructure investment."
Jakarta earlier this year said Indonesia needed $150bn in infrastructure spending over the next five years and that it wanted foreign investors to provide much of the capital needed.
But many of the projects involved have yet to be tendered amid investor concerns over projected returns and Indonesia's legal framework. The government was forced to delay until early next year a special infrastructure summit that had been scheduled to take place this month.
According to the inflation figures released Tuesday the cost of transportation and communication soared almost 29 per cent in October from the month before. Food prices also rose 7.2 per cent, according to the Central Bureau of Statistics.
Indonesia raises rates after inflation surges
By Shawn Donnan in Jakarta
Tue Nov 1, 2:55 AM ET
Indonesia's central bank moved to increase its benchmark short-term interest rate by 125 basis points to 12.25 per cent on Tuesday after official statistics showed inflation rose by a much higher than expected 17.9 per cent in October.
Economists had predicted a surge in inflation following a move by the government of Susilo Bambang Yudhoyono to increase fuel prices by an average 126 per cent on October 1 in order to rein in ballooning fuel subsidies that is pressuring Jakarta's budget.
But the size of Tuesday's rate increase and the worse than expected inflation data - which saw the consumer price index notch its biggest increase in six years - caught economist by surprise. They also raised concerns that the October 1 fuel price increase, lauded at the time for its boldness, may have been too aggressive for Indonesia's economy to absorb.
The Indonesian rupiah slumped 0.8 per cent to a four-week low of Rp10,190 to the dollar shortly after the data was released, while the Jakarta Stock Exchange's main index also fell almost 1 per cent in quiet pre-holiday trade. Indonesia's financial markets are due to shut until November 8 for the Eid holidays marking the end of Ramadan.
Aburizal Bakrie, chief economic minister, said the surge in October inflation was a "one-off" and would not derail the economy, which the government has predicted will grow by 6 per cent this year. Inflation would fall "drastically" in November and December, Mr Bakrie predicted, and settle around 7-8 per cent in 2006.
But Fauzi Ichsan, Standard Chartered's lead economist in Jakarta, said the combination of the rate increase and the surge in inflation put additional pressure on the government to increase infrastructure spending and deliver needed reforms to attract foreign investment.
"One of the concerns was that the economic cost of raising fuel prices so sharply would outweigh the fiscal benefit," Mr Ichsan said. "That's why it's very important that the government accelerate the infrastructure investment."
Jakarta earlier this year said Indonesia needed $150bn in infrastructure spending over the next five years and that it wanted foreign investors to provide much of the capital needed.
But many of the projects involved have yet to be tendered amid investor concerns over projected returns and Indonesia's legal framework. The government was forced to delay until early next year a special infrastructure summit that had been scheduled to take place this month.
According to the inflation figures released Tuesday the cost of transportation and communication soared almost 29 per cent in October from the month before. Food prices also rose 7.2 per cent, according to the Central Bureau of Statistics.
QUOTE(purnomor @ Oct 31 2005, 09:11 PM)
Indonesia Can Achieve 6.2 PCT Economic Growth in 2006: Gapmmi
JAKARTA, Nov 1 Asia Pulse - The Association of Indonesian Food and Beverage Producers (GAPMMI) believed that Indonesia's economic growth may reach 6.2 per cent in 2006, considering that in that year the government will build infrastructure to create more job opportunities which, in turn, would increase purchasing power and industrial performance.
These remarks were made by GAPMMI general chairman Thomas Dharmawan in Jakarta on Monday when commenting on the 2006 Draft State Budget which assumed the country's economic growth at 6.2 per cent, the inflation rate at eight per cent, the exchange rate of the rupiah at Rp9,900 per US dollar, and the price of oil at US$57 per barrel.
"In fact there is no direct link between the State Budget and the business world," Thomas said.
But he added that under the Draft State Budget assumption, the government at least has a reference in controlling the inflation which has a strong effect on credit interest rates.
"We hope the inflation could be checked, if possible lowered compared to that in 2005, so that the credit interest rate could also be lowered enabling businesses to move more freely," he said.
Thomas also said that the assumption of the rupiah exchange rate at Rp9.900 per US dollar was quite realistic since the value of the rupiah has now also reached this level.
He hoped that in 2006, the exchange rate of the rupiah would become more stable, especially now that the government has started lifting its fuel oil subsidy in stages.
By lifting the fuel oil subsidy, he said, the government would have money for boosting development efforts, especially in the infrastructure sector, so that many people would be able to get a job in the labour-intensive sector.
"If the government has the money for building infrastructure, more jobs would be open to the people. It is here the businesses should focus their attention, because with more job opportunities, more people will no longer be unemployed and have money with which their purchasing power will increase, which would eventually increase industrial performance in the country," Thomas said.
But he also hoped that industrial performance would improve significantly, and that the government should not issue contra-productive policies like boosting non-tax state revenue.
(ANTARA)
JAKARTA, Nov 1 Asia Pulse - The Association of Indonesian Food and Beverage Producers (GAPMMI) believed that Indonesia's economic growth may reach 6.2 per cent in 2006, considering that in that year the government will build infrastructure to create more job opportunities which, in turn, would increase purchasing power and industrial performance.
These remarks were made by GAPMMI general chairman Thomas Dharmawan in Jakarta on Monday when commenting on the 2006 Draft State Budget which assumed the country's economic growth at 6.2 per cent, the inflation rate at eight per cent, the exchange rate of the rupiah at Rp9,900 per US dollar, and the price of oil at US$57 per barrel.
"In fact there is no direct link between the State Budget and the business world," Thomas said.
But he added that under the Draft State Budget assumption, the government at least has a reference in controlling the inflation which has a strong effect on credit interest rates.
"We hope the inflation could be checked, if possible lowered compared to that in 2005, so that the credit interest rate could also be lowered enabling businesses to move more freely," he said.
Thomas also said that the assumption of the rupiah exchange rate at Rp9.900 per US dollar was quite realistic since the value of the rupiah has now also reached this level.
He hoped that in 2006, the exchange rate of the rupiah would become more stable, especially now that the government has started lifting its fuel oil subsidy in stages.
By lifting the fuel oil subsidy, he said, the government would have money for boosting development efforts, especially in the infrastructure sector, so that many people would be able to get a job in the labour-intensive sector.
"If the government has the money for building infrastructure, more jobs would be open to the people. It is here the businesses should focus their attention, because with more job opportunities, more people will no longer be unemployed and have money with which their purchasing power will increase, which would eventually increase industrial performance in the country," Thomas said.
But he also hoped that industrial performance would improve significantly, and that the government should not issue contra-productive policies like boosting non-tax state revenue.
(ANTARA)
What is this?
Another mumbo jumbo news to fool people?
How do you get this news? Where is the internet link? Did you type these words by yourselve? You must include the internet link if you put a news in here. If not, people will think you make it up, AS USUAL.
If we read carefully, the news doesn't make sense !
^ LOL, calm down, wul
You look so tense and over-excited, what's wrong, did I spoil one of your "evil" plans to fool people
The truth is, Indonesia's economy will grow around 5.5-6% this year, and will grow by 6-6.5% in 2006, one of the highest growth rate in SE Asia
http://au.news.yahoo.com/051101/3/wljm.html
http://www.thejakartapost.com/outlook/eco04b.asp
You look so tense and over-excited, what's wrong, did I spoil one of your "evil" plans to fool people
The truth is, Indonesia's economy will grow around 5.5-6% this year, and will grow by 6-6.5% in 2006, one of the highest growth rate in SE Asia
http://au.news.yahoo.com/051101/3/wljm.html
QUOTE
Indonesia market outlook 2005: Another better year ahead
David Chang
This time last year, I predicted that the stock market in 2004 would be better than in the previous year despite the political concerns, even after being one of the strongest performers in Asia for 2003. That has proven to be right as the Jakarta Stock Exchange composite index has since climbed 36 percent from 692 points at end-2003 to 939 as of Dec. 15, 2004. Investors who have profited from the bull run this year will no doubt ask themselves whether it is time to cash out any time soon, with the stock market at such unprecedented highs.
The market has made an ostensibly impressive recovery in 2004 due to a cheap market valuation. I believe that another better year lies ahead. If the economy and corporate earnings perform as expected, and the political environment remains stable, then the bull market should continue, albeit at a more controlled pace, at least for the next 18 months.
There are various reasons for my current optimism in the market. Susilo Bambang Yudhoyono's victory as Indonesia's first directly elected president last July, over Megawati Soekarnoputri was not widely expected, but it did not dampen market sentiment. Although Megawati was credited for doing a reasonably good job for the Indonesian economy during her term, foreign investors were quick to envisage the positive benefits for the country when Susilo unexpectedly won the people's popular mandate.
The presidential and general election results had been one of the most critical factors, which influenced the Indonesian financial market in 2004. For many years, political risk has played a dominant role in depressing the domestic currency, equity and bond prices, while relatively high interest rates maintain a severe constraint on corporate earnings growth. As a result, Indonesia has suffered from the consequences of high inflation and low economic growth.
However, the economic outlook for Indonesia is expected to turn around over the next few years under the new leadership of Susilo. Indonesia's GDP growth should improve modestly from 4.8 percent in 2004 to 5.4 percent in 2005, based on conservative assumptions and supported by robust growth during the second and third quarters of 2004.
GDP growth was 5.0 percent in Q3 2004, which is slightly higher than expectations of 4.6 percent, and the 4.5 percent growth in Q2. The growth was mainly boosted by domestic consumption, which accounted for 73 percent of GDP growth. A stronger rupiah and lower interest rate environment should continue to enhance the economy.
As part of the government's election promise to push growth rate up to 7 percent by 2009, there are ambitious plans for investment in infrastructure. In the next five years, the government is expected to raise between Rp 700 trillion (US$75 billion) and Rp 1,000 trillion (US$110 billion), or about one third of its GDP from local and foreign investors to finance infrastructure projects to build roads, railways, ports, airports, power plants, telecommunication facilities, gas distribution, water plants, irrigation facilities, housing and other crucial infrastructure.
About Rp 200 trillion could be funded by the state budget, another Rp 200 trillion by local banks but the remainder is expected to be financed by local and foreign institutional investors, including global financial institutions such as the World Bank and the Asian Development Bank. More investments opportunities will thus be available for investors and lenders over the next few years.
Foreign investors have been particularly impressed by Susilo's focus to reduce government corruption and to improve domestic security. The corruption issue has been particularly awkward for the government since Transparency International recently ranked Indonesia as among the most-corrupt countries in the world. This was probably the reason for Susilo's decision to make it mandatory for Cabinet ministers and senior government officials to utter public oaths and sign "political contracts" against corruption.
A gradual reduction in institutionalized corruption could ensure more efficient allocation of economic resources, and a more equitable distribution of wealth among the people who have remained one of the poorest (in terms of GDP per capita) in this region. In the long run, this should provide a more stable social environment and stronger economy. The government has since demonstrated an added zeal in pursuing and prosecuting the perpetrators responsible for the Bali and Kuningan bombings.
This would help alleviate fears that Indonesia, being the biggest Muslim country in the world, could become a terrorist refuge for future attacks against Western interests within the region. With a significant reduction in risk premium, Indonesian asset values should climb rapidly in the short term.
Susilo is likely to be judged on his performance during the first 100 days of office in Q1 2005, and would be perceived to have "acted" on the main election pledges to improve the economy, enhance domestic security and reduce corruption. It is therefore unlikely that his political opponents would be able to find major issues which could pose a serious political threat for Susilo during that period.
However, the president is expected to face a serious leadership challenge with a significant fuel price increase planned for next year, when shrewd political opponents could incite ferocious public antagonism against the government which would ultimately be detrimental to the state budget deficit. With rising unemployment (currently over 9 percent), political opponents could harness the massive dissenting population, still living in poverty, to protest and weaken the government.
Due to higher oil prices, the fuel subsidy is estimated to reach Rp 59 trillion in 2004, from Rp 20 trillion in the previous year. The sudden removal of oil subsidies are likely to cause strong inflationary and interest rate pressures on the economy. Although higher oil prices would increase oil subsidies and hence worsen the budget deficit, the government is hoping that this impact may be mitigated by increased revenue from the oil and gas industry.
The recent deregulation of the oil and gas sector is expected to boost investment in the sector. Investment on oil exploration is expected to more than triple to US$779 million in 2004, according to the Energy and Mining Resources Ministry. This is necessary to boost production among major oil companies, due to gradual depletion of oil reserves in the current aging oil fields. The government is expected to sign 46 new oil and gas contracts worth more than US$4.2 billion.
The International Monetary Fund (IMF) and other international financial institutions are currently upbeat on the Indonesian economy. During its recent visit, the IMF summed up its view on Indonesia that current GDP growth is "below potential", economic performance has continued to improve and financial markets have responded favorably. With a relatively stable political and social environment, Indonesia's economic growth fundamentals are currently the best that we have seen since the economic crisis in 1997.
The Indonesia market outlook for 2005 is promising, and could shape up to become one of the most exciting emerging markets in the world
David Chang
This time last year, I predicted that the stock market in 2004 would be better than in the previous year despite the political concerns, even after being one of the strongest performers in Asia for 2003. That has proven to be right as the Jakarta Stock Exchange composite index has since climbed 36 percent from 692 points at end-2003 to 939 as of Dec. 15, 2004. Investors who have profited from the bull run this year will no doubt ask themselves whether it is time to cash out any time soon, with the stock market at such unprecedented highs.
The market has made an ostensibly impressive recovery in 2004 due to a cheap market valuation. I believe that another better year lies ahead. If the economy and corporate earnings perform as expected, and the political environment remains stable, then the bull market should continue, albeit at a more controlled pace, at least for the next 18 months.
There are various reasons for my current optimism in the market. Susilo Bambang Yudhoyono's victory as Indonesia's first directly elected president last July, over Megawati Soekarnoputri was not widely expected, but it did not dampen market sentiment. Although Megawati was credited for doing a reasonably good job for the Indonesian economy during her term, foreign investors were quick to envisage the positive benefits for the country when Susilo unexpectedly won the people's popular mandate.
The presidential and general election results had been one of the most critical factors, which influenced the Indonesian financial market in 2004. For many years, political risk has played a dominant role in depressing the domestic currency, equity and bond prices, while relatively high interest rates maintain a severe constraint on corporate earnings growth. As a result, Indonesia has suffered from the consequences of high inflation and low economic growth.
However, the economic outlook for Indonesia is expected to turn around over the next few years under the new leadership of Susilo. Indonesia's GDP growth should improve modestly from 4.8 percent in 2004 to 5.4 percent in 2005, based on conservative assumptions and supported by robust growth during the second and third quarters of 2004.
GDP growth was 5.0 percent in Q3 2004, which is slightly higher than expectations of 4.6 percent, and the 4.5 percent growth in Q2. The growth was mainly boosted by domestic consumption, which accounted for 73 percent of GDP growth. A stronger rupiah and lower interest rate environment should continue to enhance the economy.
As part of the government's election promise to push growth rate up to 7 percent by 2009, there are ambitious plans for investment in infrastructure. In the next five years, the government is expected to raise between Rp 700 trillion (US$75 billion) and Rp 1,000 trillion (US$110 billion), or about one third of its GDP from local and foreign investors to finance infrastructure projects to build roads, railways, ports, airports, power plants, telecommunication facilities, gas distribution, water plants, irrigation facilities, housing and other crucial infrastructure.
About Rp 200 trillion could be funded by the state budget, another Rp 200 trillion by local banks but the remainder is expected to be financed by local and foreign institutional investors, including global financial institutions such as the World Bank and the Asian Development Bank. More investments opportunities will thus be available for investors and lenders over the next few years.
Foreign investors have been particularly impressed by Susilo's focus to reduce government corruption and to improve domestic security. The corruption issue has been particularly awkward for the government since Transparency International recently ranked Indonesia as among the most-corrupt countries in the world. This was probably the reason for Susilo's decision to make it mandatory for Cabinet ministers and senior government officials to utter public oaths and sign "political contracts" against corruption.
A gradual reduction in institutionalized corruption could ensure more efficient allocation of economic resources, and a more equitable distribution of wealth among the people who have remained one of the poorest (in terms of GDP per capita) in this region. In the long run, this should provide a more stable social environment and stronger economy. The government has since demonstrated an added zeal in pursuing and prosecuting the perpetrators responsible for the Bali and Kuningan bombings.
This would help alleviate fears that Indonesia, being the biggest Muslim country in the world, could become a terrorist refuge for future attacks against Western interests within the region. With a significant reduction in risk premium, Indonesian asset values should climb rapidly in the short term.
Susilo is likely to be judged on his performance during the first 100 days of office in Q1 2005, and would be perceived to have "acted" on the main election pledges to improve the economy, enhance domestic security and reduce corruption. It is therefore unlikely that his political opponents would be able to find major issues which could pose a serious political threat for Susilo during that period.
However, the president is expected to face a serious leadership challenge with a significant fuel price increase planned for next year, when shrewd political opponents could incite ferocious public antagonism against the government which would ultimately be detrimental to the state budget deficit. With rising unemployment (currently over 9 percent), political opponents could harness the massive dissenting population, still living in poverty, to protest and weaken the government.
Due to higher oil prices, the fuel subsidy is estimated to reach Rp 59 trillion in 2004, from Rp 20 trillion in the previous year. The sudden removal of oil subsidies are likely to cause strong inflationary and interest rate pressures on the economy. Although higher oil prices would increase oil subsidies and hence worsen the budget deficit, the government is hoping that this impact may be mitigated by increased revenue from the oil and gas industry.
The recent deregulation of the oil and gas sector is expected to boost investment in the sector. Investment on oil exploration is expected to more than triple to US$779 million in 2004, according to the Energy and Mining Resources Ministry. This is necessary to boost production among major oil companies, due to gradual depletion of oil reserves in the current aging oil fields. The government is expected to sign 46 new oil and gas contracts worth more than US$4.2 billion.
The International Monetary Fund (IMF) and other international financial institutions are currently upbeat on the Indonesian economy. During its recent visit, the IMF summed up its view on Indonesia that current GDP growth is "below potential", economic performance has continued to improve and financial markets have responded favorably. With a relatively stable political and social environment, Indonesia's economic growth fundamentals are currently the best that we have seen since the economic crisis in 1997.
The Indonesia market outlook for 2005 is promising, and could shape up to become one of the most exciting emerging markets in the world
http://www.thejakartapost.com/outlook/eco04b.asp
Quotas send China's ragmen southeast
JAKARTA - Chinese manufacturers, including foreign manufacturers based in mainland China, are poised to relocate production to Indonesia. Following a memorandum concluded in July, one of China's largest manufacturers, located in Guangdong province, is expected to be among the first Chinese companies to relocate some manufacturing to the Southeast Asian archipelago.
Indonesia's Trade Minister, Mari Pangestu, who accompanied President Susilo Bambang Yudhoyono to Beijing in July, said in a recent interview that manufacturers in China are increasingly looking to expand into other countries such as Indonesia, Thailand and Vietnam to avoid quota problems in developed country markets. Some of these companies in China couldrelocate to Indonesia as soon as the next six to 12 months. But Pangestu said some have only started their feasibility study. "They are trying to understand the investment climate and business conditions in Indonesia," she said.
Precisely for this reason, Pangestu led a large delegation of Indonesian business leaders to China, preceding a four-day reciprocal visit by Yudhoyono to Beijing. "Chinese manufacturers are facing a lot of pressure from developed countries because of the surge of Chinese imports in light industrial products," she said. "So Chinese companies as well as foreign companies based in China, are planning to diversify their production outside China."
Pangestu said the situation in China today is similar to that which Japan faced in the 1970s. "Like Japan then, China faces a lot of trade tension with the US. Japan relocated the bulk of its production overseas subsequently." She said the Chinese are just beginning to explore the possibility, looking to Indonesia, Vietnam and Thailand as possible locations. "Indonesia has the advantage because we also have a larger pool of resources - including labor and a large domestic market."
One of China's largest trading companies in Guangdong, the center of China's light manufacturing, is planning initially to open a trading office in Indonesia. Pangestu said the idea is to relocate in stages, eventually establishing production plants in Indonesia. "It is good for us because it will help develop our light industry again. The company will export products from Indonesia back to the Chinese market and regional and global markets."
She added that the relocation will involve other export-oriented production, such as garments, footwear and furniture. Indonesia is particularly suited to furniture manufacturing because of the abundance of raw materials. "The Chinese are new to the game of foreign investment. With the exception of the large companies, many of the medium-sized companies have not really ventured abroad before. So for them it is a new experience." One of the agreements with the Chinese is to develop an industrial park to cater to medium-sized Chinese companies.
Pangestu said that, also like Japan in the 1970s, China is preoccupied with its need for energy and is looking for energy security through investment overseas. China's initial investments in Indonesia have been in energy as it realizes Indonesia is an important future energy source. In these cases, the investors were CNOOC and PetroChina.
Pangestu confirmed that there is "a lot of interest from China" in Indonesia. "There is an obvious complementarity between Indonesia and China. We have a common objective to gain from this complementarity. Jointly, we can develop our resources and industries to our mutual benefit. We are increasing our bilateral trade as well as expanding our exports to other parts of the world. China is our fifth-largest trading partner, and the fastest-growing one." Last year, Indonesia exported foods worth US$4.6 billion to Indonesia - up 21% over 2003.
So far, however, the total invested is modest. Pangestu said Chinese investment totals about $1.2 billion in oil and gas, as CNOOC and PetroChina took over the interests of other foreign oil companies in Indonesia. Another $1-$2 billion has been mostly invested in agriculture and trading.
China's state-owned companies - backed by their government - have shown keen interest in participating in Indonesia's ambitious program to rebuild the country's infrastructure. Indonesia has a long wish list of infrastructure projects that it wants to build over the next five years, costing $145 billion. The private sector is expected to fund 60% of the cost. Pangestu said China has now offered concessional loans totaling $800 million to Indonesia. Half of that amount was offered during the presidency of Megawati Sukarnoputri. However, it took a long time to identify projects for funding.
During his visit to Indonesia in April, China's President Hu Jintao offered another $300 million towards Indonesia's infrastructure program, and Pangestu said Beijing offered a further $100 million during Yudhoyono's recent visit. She said a number of projects have been earmarked for the loans, which will fund building of bridges, power plants and railway tracks in West Java. But she also noted that these projects are not commercially viable, and need government involvement to get them off the ground.
A number of government-to-government memoranda of understanding (MoUs) were signed last month, particularly in the energy sector. One of the projects is a $2.1 billion coal-fueled power plant in Muara Enim, South Sumatra, which will have a total capacity of 2,400 megawatts. Another is the development of the 1,320-megawatt, coal-fueled Tanjung Jati A power plant in central Java, expected to cost $1.1 billion.
Still another agreement covered construction of a 150,000-200,000 barrel-a-day oil refinery in Indonesia's East Java province - a venture between the Indonesian state-run oil and gas company, Pertamina, and the Chinese Petroleum & Chemical Corporation (Sinopec). Pangestu said production from the refinery will be primarily for domestic consumption.
(Asia Pulse)
JAKARTA - Chinese manufacturers, including foreign manufacturers based in mainland China, are poised to relocate production to Indonesia. Following a memorandum concluded in July, one of China's largest manufacturers, located in Guangdong province, is expected to be among the first Chinese companies to relocate some manufacturing to the Southeast Asian archipelago.
Indonesia's Trade Minister, Mari Pangestu, who accompanied President Susilo Bambang Yudhoyono to Beijing in July, said in a recent interview that manufacturers in China are increasingly looking to expand into other countries such as Indonesia, Thailand and Vietnam to avoid quota problems in developed country markets. Some of these companies in China couldrelocate to Indonesia as soon as the next six to 12 months. But Pangestu said some have only started their feasibility study. "They are trying to understand the investment climate and business conditions in Indonesia," she said.
Precisely for this reason, Pangestu led a large delegation of Indonesian business leaders to China, preceding a four-day reciprocal visit by Yudhoyono to Beijing. "Chinese manufacturers are facing a lot of pressure from developed countries because of the surge of Chinese imports in light industrial products," she said. "So Chinese companies as well as foreign companies based in China, are planning to diversify their production outside China."
Pangestu said the situation in China today is similar to that which Japan faced in the 1970s. "Like Japan then, China faces a lot of trade tension with the US. Japan relocated the bulk of its production overseas subsequently." She said the Chinese are just beginning to explore the possibility, looking to Indonesia, Vietnam and Thailand as possible locations. "Indonesia has the advantage because we also have a larger pool of resources - including labor and a large domestic market."
One of China's largest trading companies in Guangdong, the center of China's light manufacturing, is planning initially to open a trading office in Indonesia. Pangestu said the idea is to relocate in stages, eventually establishing production plants in Indonesia. "It is good for us because it will help develop our light industry again. The company will export products from Indonesia back to the Chinese market and regional and global markets."
She added that the relocation will involve other export-oriented production, such as garments, footwear and furniture. Indonesia is particularly suited to furniture manufacturing because of the abundance of raw materials. "The Chinese are new to the game of foreign investment. With the exception of the large companies, many of the medium-sized companies have not really ventured abroad before. So for them it is a new experience." One of the agreements with the Chinese is to develop an industrial park to cater to medium-sized Chinese companies.
Pangestu said that, also like Japan in the 1970s, China is preoccupied with its need for energy and is looking for energy security through investment overseas. China's initial investments in Indonesia have been in energy as it realizes Indonesia is an important future energy source. In these cases, the investors were CNOOC and PetroChina.
Pangestu confirmed that there is "a lot of interest from China" in Indonesia. "There is an obvious complementarity between Indonesia and China. We have a common objective to gain from this complementarity. Jointly, we can develop our resources and industries to our mutual benefit. We are increasing our bilateral trade as well as expanding our exports to other parts of the world. China is our fifth-largest trading partner, and the fastest-growing one." Last year, Indonesia exported foods worth US$4.6 billion to Indonesia - up 21% over 2003.
So far, however, the total invested is modest. Pangestu said Chinese investment totals about $1.2 billion in oil and gas, as CNOOC and PetroChina took over the interests of other foreign oil companies in Indonesia. Another $1-$2 billion has been mostly invested in agriculture and trading.
China's state-owned companies - backed by their government - have shown keen interest in participating in Indonesia's ambitious program to rebuild the country's infrastructure. Indonesia has a long wish list of infrastructure projects that it wants to build over the next five years, costing $145 billion. The private sector is expected to fund 60% of the cost. Pangestu said China has now offered concessional loans totaling $800 million to Indonesia. Half of that amount was offered during the presidency of Megawati Sukarnoputri. However, it took a long time to identify projects for funding.
During his visit to Indonesia in April, China's President Hu Jintao offered another $300 million towards Indonesia's infrastructure program, and Pangestu said Beijing offered a further $100 million during Yudhoyono's recent visit. She said a number of projects have been earmarked for the loans, which will fund building of bridges, power plants and railway tracks in West Java. But she also noted that these projects are not commercially viable, and need government involvement to get them off the ground.
A number of government-to-government memoranda of understanding (MoUs) were signed last month, particularly in the energy sector. One of the projects is a $2.1 billion coal-fueled power plant in Muara Enim, South Sumatra, which will have a total capacity of 2,400 megawatts. Another is the development of the 1,320-megawatt, coal-fueled Tanjung Jati A power plant in central Java, expected to cost $1.1 billion.
Still another agreement covered construction of a 150,000-200,000 barrel-a-day oil refinery in Indonesia's East Java province - a venture between the Indonesian state-run oil and gas company, Pertamina, and the Chinese Petroleum & Chemical Corporation (Sinopec). Pangestu said production from the refinery will be primarily for domestic consumption.
(Asia Pulse)
QUOTE(purnomor @ Nov 1 2005, 09:00 PM)
Quotas send China's ragmen southeast
JAKARTA - Chinese manufacturers, including foreign manufacturers based in mainland China, are poised to relocate production to Indonesia. Following a memorandum concluded in July, one of China's largest manufacturers, located in Guangdong province, is expected to be among the first Chinese companies to relocate some manufacturing to the Southeast Asian archipelago.
Indonesia's Trade Minister, Mari Pangestu, who accompanied President Susilo Bambang Yudhoyono to Beijing in July, said in a recent interview that manufacturers in China are increasingly looking to expand into other countries such as Indonesia, Thailand and Vietnam to avoid quota problems in developed country markets. Some of these companies in China couldrelocate to Indonesia as soon as the next six to 12 months. But Pangestu said some have only started their feasibility study. "They are trying to understand the investment climate and business conditions in Indonesia," she said.
Precisely for this reason, Pangestu led a large delegation of Indonesian business leaders to China, preceding a four-day reciprocal visit by Yudhoyono to Beijing. "Chinese manufacturers are facing a lot of pressure from developed countries because of the surge of Chinese imports in light industrial products," she said. "So Chinese companies as well as foreign companies based in China, are planning to diversify their production outside China."
Pangestu said the situation in China today is similar to that which Japan faced in the 1970s. "Like Japan then, China faces a lot of trade tension with the US. Japan relocated the bulk of its production overseas subsequently." She said the Chinese are just beginning to explore the possibility, looking to Indonesia, Vietnam and Thailand as possible locations. "Indonesia has the advantage because we also have a larger pool of resources - including labor and a large domestic market."
One of China's largest trading companies in Guangdong, the center of China's light manufacturing, is planning initially to open a trading office in Indonesia. Pangestu said the idea is to relocate in stages, eventually establishing production plants in Indonesia. "It is good for us because it will help develop our light industry again. The company will export products from Indonesia back to the Chinese market and regional and global markets."
She added that the relocation will involve other export-oriented production, such as garments, footwear and furniture. Indonesia is particularly suited to furniture manufacturing because of the abundance of raw materials. "The Chinese are new to the game of foreign investment. With the exception of the large companies, many of the medium-sized companies have not really ventured abroad before. So for them it is a new experience." One of the agreements with the Chinese is to develop an industrial park to cater to medium-sized Chinese companies.
Pangestu said that, also like Japan in the 1970s, China is preoccupied with its need for energy and is looking for energy security through investment overseas. China's initial investments in Indonesia have been in energy as it realizes Indonesia is an important future energy source. In these cases, the investors were CNOOC and PetroChina.
Pangestu confirmed that there is "a lot of interest from China" in Indonesia. "There is an obvious complementarity between Indonesia and China. We have a common objective to gain from this complementarity. Jointly, we can develop our resources and industries to our mutual benefit. We are increasing our bilateral trade as well as expanding our exports to other parts of the world. China is our fifth-largest trading partner, and the fastest-growing one." Last year, Indonesia exported foods worth US$4.6 billion to Indonesia - up 21% over 2003.
So far, however, the total invested is modest. Pangestu said Chinese investment totals about $1.2 billion in oil and gas, as CNOOC and PetroChina took over the interests of other foreign oil companies in Indonesia. Another $1-$2 billion has been mostly invested in agriculture and trading.
China's state-owned companies - backed by their government - have shown keen interest in participating in Indonesia's ambitious program to rebuild the country's infrastructure. Indonesia has a long wish list of infrastructure projects that it wants to build over the next five years, costing $145 billion. The private sector is expected to fund 60% of the cost. Pangestu said China has now offered concessional loans totaling $800 million to Indonesia. Half of that amount was offered during the presidency of Megawati Sukarnoputri. However, it took a long time to identify projects for funding.
During his visit to Indonesia in April, China's President Hu Jintao offered another $300 million towards Indonesia's infrastructure program, and Pangestu said Beijing offered a further $100 million during Yudhoyono's recent visit. She said a number of projects have been earmarked for the loans, which will fund building of bridges, power plants and railway tracks in West Java. But she also noted that these projects are not commercially viable, and need government involvement to get them off the ground.
A number of government-to-government memoranda of understanding (MoUs) were signed last month, particularly in the energy sector. One of the projects is a $2.1 billion coal-fueled power plant in Muara Enim, South Sumatra, which will have a total capacity of 2,400 megawatts. Another is the development of the 1,320-megawatt, coal-fueled Tanjung Jati A power plant in central Java, expected to cost $1.1 billion.
Still another agreement covered construction of a 150,000-200,000 barrel-a-day oil refinery in Indonesia's East Java province - a venture between the Indonesian state-run oil and gas company, Pertamina, and the Chinese Petroleum & Chemical Corporation (Sinopec). Pangestu said production from the refinery will be primarily for domestic consumption.
(Asia Pulse)
JAKARTA - Chinese manufacturers, including foreign manufacturers based in mainland China, are poised to relocate production to Indonesia. Following a memorandum concluded in July, one of China's largest manufacturers, located in Guangdong province, is expected to be among the first Chinese companies to relocate some manufacturing to the Southeast Asian archipelago.
Indonesia's Trade Minister, Mari Pangestu, who accompanied President Susilo Bambang Yudhoyono to Beijing in July, said in a recent interview that manufacturers in China are increasingly looking to expand into other countries such as Indonesia, Thailand and Vietnam to avoid quota problems in developed country markets. Some of these companies in China couldrelocate to Indonesia as soon as the next six to 12 months. But Pangestu said some have only started their feasibility study. "They are trying to understand the investment climate and business conditions in Indonesia," she said.
Precisely for this reason, Pangestu led a large delegation of Indonesian business leaders to China, preceding a four-day reciprocal visit by Yudhoyono to Beijing. "Chinese manufacturers are facing a lot of pressure from developed countries because of the surge of Chinese imports in light industrial products," she said. "So Chinese companies as well as foreign companies based in China, are planning to diversify their production outside China."
Pangestu said the situation in China today is similar to that which Japan faced in the 1970s. "Like Japan then, China faces a lot of trade tension with the US. Japan relocated the bulk of its production overseas subsequently." She said the Chinese are just beginning to explore the possibility, looking to Indonesia, Vietnam and Thailand as possible locations. "Indonesia has the advantage because we also have a larger pool of resources - including labor and a large domestic market."
One of China's largest trading companies in Guangdong, the center of China's light manufacturing, is planning initially to open a trading office in Indonesia. Pangestu said the idea is to relocate in stages, eventually establishing production plants in Indonesia. "It is good for us because it will help develop our light industry again. The company will export products from Indonesia back to the Chinese market and regional and global markets."
She added that the relocation will involve other export-oriented production, such as garments, footwear and furniture. Indonesia is particularly suited to furniture manufacturing because of the abundance of raw materials. "The Chinese are new to the game of foreign investment. With the exception of the large companies, many of the medium-sized companies have not really ventured abroad before. So for them it is a new experience." One of the agreements with the Chinese is to develop an industrial park to cater to medium-sized Chinese companies.
Pangestu said that, also like Japan in the 1970s, China is preoccupied with its need for energy and is looking for energy security through investment overseas. China's initial investments in Indonesia have been in energy as it realizes Indonesia is an important future energy source. In these cases, the investors were CNOOC and PetroChina.
Pangestu confirmed that there is "a lot of interest from China" in Indonesia. "There is an obvious complementarity between Indonesia and China. We have a common objective to gain from this complementarity. Jointly, we can develop our resources and industries to our mutual benefit. We are increasing our bilateral trade as well as expanding our exports to other parts of the world. China is our fifth-largest trading partner, and the fastest-growing one." Last year, Indonesia exported foods worth US$4.6 billion to Indonesia - up 21% over 2003.
So far, however, the total invested is modest. Pangestu said Chinese investment totals about $1.2 billion in oil and gas, as CNOOC and PetroChina took over the interests of other foreign oil companies in Indonesia. Another $1-$2 billion has been mostly invested in agriculture and trading.
China's state-owned companies - backed by their government - have shown keen interest in participating in Indonesia's ambitious program to rebuild the country's infrastructure. Indonesia has a long wish list of infrastructure projects that it wants to build over the next five years, costing $145 billion. The private sector is expected to fund 60% of the cost. Pangestu said China has now offered concessional loans totaling $800 million to Indonesia. Half of that amount was offered during the presidency of Megawati Sukarnoputri. However, it took a long time to identify projects for funding.
During his visit to Indonesia in April, China's President Hu Jintao offered another $300 million towards Indonesia's infrastructure program, and Pangestu said Beijing offered a further $100 million during Yudhoyono's recent visit. She said a number of projects have been earmarked for the loans, which will fund building of bridges, power plants and railway tracks in West Java. But she also noted that these projects are not commercially viable, and need government involvement to get them off the ground.
A number of government-to-government memoranda of understanding (MoUs) were signed last month, particularly in the energy sector. One of the projects is a $2.1 billion coal-fueled power plant in Muara Enim, South Sumatra, which will have a total capacity of 2,400 megawatts. Another is the development of the 1,320-megawatt, coal-fueled Tanjung Jati A power plant in central Java, expected to cost $1.1 billion.
Still another agreement covered construction of a 150,000-200,000 barrel-a-day oil refinery in Indonesia's East Java province - a venture between the Indonesian state-run oil and gas company, Pertamina, and the Chinese Petroleum & Chemical Corporation (Sinopec). Pangestu said production from the refinery will be primarily for domestic consumption.
(Asia Pulse)
Where is the internet link of the writing?
Without the internet link, people will consider you make it up, AS USUAL
People cannot do check and recheck
QUOTE(purnomor @ Nov 1 2005, 09:23 PM)
That is better !
Remember, you must include the internet link of your writing. If not, I will consider you make it up, AS USUAL
Remember that !!
LOL like anybody cares what an idiot like you think 
QUOTE(purnomor @ Nov 1 2005, 09:33 PM)
LOL like anybody cares what an idiot like you think
Considering all your lies and manipulative acts, you must repent your sins !!
And, try to feel shame for your bad acts, will you?
^ LOL take it easy, wul
QUOTE(purnomor @ Nov 1 2005, 08:46 PM)
^ LOL take it easy, wul
He/She reminds me a lot of Opa Londoh minus sense of humor!Opa Londoh, I miss you, btw
^ a rude little boy can never be as entertaining as a grumpy old man 
now, let's go back to business
Indonesia's exports up 21 percent in first nine months
Indonesia's exports showed continued growth in the first three quarters of this year, recording a 21.15 percent increase over the same period of last year, local media said in Jakarta Wednesday.
The total exports stood at 62.31 billion US dollars, as a result of stronger global demand for electronic and mechanical goods, the Jakarta Post quoted a report of the Central Statistics Agency (BPS) as saying.
Non-oil and -gas export earnings during the period accounted for 78 percent of Indonesia's total income from international trade, said the report released here Tuesday.
Indonesia's exports hit a record high last year, reaching 69.71 billion US dollars, up 11.49 percent year-on-year.
Source: Xinhua
now, let's go back to business
Indonesia's exports up 21 percent in first nine months
Indonesia's exports showed continued growth in the first three quarters of this year, recording a 21.15 percent increase over the same period of last year, local media said in Jakarta Wednesday.
The total exports stood at 62.31 billion US dollars, as a result of stronger global demand for electronic and mechanical goods, the Jakarta Post quoted a report of the Central Statistics Agency (BPS) as saying.
Non-oil and -gas export earnings during the period accounted for 78 percent of Indonesia's total income from international trade, said the report released here Tuesday.
Indonesia's exports hit a record high last year, reaching 69.71 billion US dollars, up 11.49 percent year-on-year.
Source: Xinhua
Chinese, Japanese firms busy in Indonesia
Eric Watkins
Senior Correspondent
LOS ANGELES, Nov. 3 -- Chinese and Japanese firms are increasing operations in Indonesia.
Japan's Inpex Corp. is preparing to develop the late-2000 Abadi gas discovery in 580 m of water on the Masela Block adjacent to Australian waters. The company drilled two appraisal wells in 2002 that it says "far exceeded expectations."
Starting in mid-2006, the company will drill four wells, mainly in the northwestern part of the block.
Inpex, which owns full rights to the area, plans to use production to feed a 5-7 tonne/year LNG facility and will begin efforts in 2007 to form long-term supply agreements with electric power and gas companies.
Expecting development expenses of up to ¥500 billion, Inpex plans to begin plant and pipeline construction from 2008, with production expected to commence during 2010-15.
Meanwhile China's PetroChina Co. hopes to increase production from its oil and gas fields in Indonesia by 23% to 88,100 boe/d in 2006. The company's Indonesian unit is producing 71,600 boe/d from the six blocks that it operates, with a target production of 74,000 boe/d by yearend.
PetroChina Vice-Pres. Budi Setiadi said additional output next year is expected from all of the blocks where the firm is operating, except Tuban, which will maintain production at 16,000 boe/d.
The Jabung block—PetroChina 45%, Malaysia's Petronas 45%, and Indonesia's PT Pertamina 10%—will produce 50,000 boe/d, compared with 46,000 boe/d currently.
He said the third phase of Betara field development in August started producing 9,500 b/d of crude oil, 100 MMscfd of gas, and about 15,000 b/d of gas liquids (see map, OGJ, May 31, 1999, p. 70).
Buti said Betara is operating at 80% capacity and will reach full capacity in mid-November.
PetroChina's production from the Salawati offshore basin in Papua will rise next year to 7,600 boe/d from 5,300 boe/d, he said, while output from the onshore field will jump to 9,700 boe/d from 3,300 boe/d.
Contact Eric Watkins at hippalus@yahoo.com.
Eric Watkins
Senior Correspondent
LOS ANGELES, Nov. 3 -- Chinese and Japanese firms are increasing operations in Indonesia.
Japan's Inpex Corp. is preparing to develop the late-2000 Abadi gas discovery in 580 m of water on the Masela Block adjacent to Australian waters. The company drilled two appraisal wells in 2002 that it says "far exceeded expectations."
Starting in mid-2006, the company will drill four wells, mainly in the northwestern part of the block.
Inpex, which owns full rights to the area, plans to use production to feed a 5-7 tonne/year LNG facility and will begin efforts in 2007 to form long-term supply agreements with electric power and gas companies.
Expecting development expenses of up to ¥500 billion, Inpex plans to begin plant and pipeline construction from 2008, with production expected to commence during 2010-15.
Meanwhile China's PetroChina Co. hopes to increase production from its oil and gas fields in Indonesia by 23% to 88,100 boe/d in 2006. The company's Indonesian unit is producing 71,600 boe/d from the six blocks that it operates, with a target production of 74,000 boe/d by yearend.
PetroChina Vice-Pres. Budi Setiadi said additional output next year is expected from all of the blocks where the firm is operating, except Tuban, which will maintain production at 16,000 boe/d.
The Jabung block—PetroChina 45%, Malaysia's Petronas 45%, and Indonesia's PT Pertamina 10%—will produce 50,000 boe/d, compared with 46,000 boe/d currently.
He said the third phase of Betara field development in August started producing 9,500 b/d of crude oil, 100 MMscfd of gas, and about 15,000 b/d of gas liquids (see map, OGJ, May 31, 1999, p. 70).
Buti said Betara is operating at 80% capacity and will reach full capacity in mid-November.
PetroChina's production from the Salawati offshore basin in Papua will rise next year to 7,600 boe/d from 5,300 boe/d, he said, while output from the onshore field will jump to 9,700 boe/d from 3,300 boe/d.
Contact Eric Watkins at hippalus@yahoo.com.
Telkom will spend Rp 12b on capital next year
Rendi A. Witular, The Jakarta Post/Jakarta
State-owned PT Telekomunikasi Indonesia (Telkom), the nation's largest telecommunication company, plans to spend at least some Rp 12 trillion (US$1.19 billion) for next year's expansions and operations.
Telkom president director Arwin Rashid told The Jakarta Post recently that more than 50 percent of the allocated capital expenditure (capex) would be spent on expanding the company's cellular business and adding new equipment.
"We have not come up with a definite figure yet, as it is still being arranged. But we will certainly allocate some Rp 12 trillion for capex, which is more or less at the same amount as this year's allocation," he said.
Arwin said this year's capex would be lower than the initial allocation of Rp 13.7 trillion.
Telkom cellular subsidiary PT Telkomsel has engaged in an aggressive expansion to take advantage of the country's untapped mobile phone users, which are estimated to reach more than 50 million, or some 23 percent of the country's 220 million people.
At the end of March, the company had 17.9 million users, or 55 percent of the market share.
Telkom owns 65 percent of Telkomsel, while Singapore Telecommunications Ltd. (SingTel), Southeast Asia's largest telecommunication company holds the remainder.
"Growth in cellular business has outperformed other telecommunication businesses. Telkom will remain focused on expanding the cellular business, which is becoming more competitive," Arwin said.
Telkomsel expects its users to grow by more than 50 percent this year to around 25 million this year, and at least by about 30 percent next year. The company had around 16 million subscribers last year.
Higher economic growth, which propelled stronger purchasing power, is driving cellular demand in Indonesia and the country's $258 billion a year economy is projected to grow by around 5.7 percent this year and 6.2 percent in 2006.
In the fixed-line business, Telkom is targeting users to reach some 11 million this year, with at least 15 percent growth in new users next year.
Currently, only about 4 percent of the country's population have access to fixed telephones, including fixed-line and fixed wireless phones. Telkom controls some 97 percent of the domestic market.
The government has urged local phone operators to build 10.7 million fixed telephone lines by the end of 2008. This year alone, Telkom and smaller rival PT Indosat are obliged to build at least 1.4 million lines.
Critics have said that the low penetration of fixed lines in rural area is because Telkom is reluctant to implement its public service obligations as mandated by the government. The business is a high-investment one with lower returns than other sectors.
Rendi A. Witular, The Jakarta Post/Jakarta
State-owned PT Telekomunikasi Indonesia (Telkom), the nation's largest telecommunication company, plans to spend at least some Rp 12 trillion (US$1.19 billion) for next year's expansions and operations.
Telkom president director Arwin Rashid told The Jakarta Post recently that more than 50 percent of the allocated capital expenditure (capex) would be spent on expanding the company's cellular business and adding new equipment.
"We have not come up with a definite figure yet, as it is still being arranged. But we will certainly allocate some Rp 12 trillion for capex, which is more or less at the same amount as this year's allocation," he said.
Arwin said this year's capex would be lower than the initial allocation of Rp 13.7 trillion.
Telkom cellular subsidiary PT Telkomsel has engaged in an aggressive expansion to take advantage of the country's untapped mobile phone users, which are estimated to reach more than 50 million, or some 23 percent of the country's 220 million people.
At the end of March, the company had 17.9 million users, or 55 percent of the market share.
Telkom owns 65 percent of Telkomsel, while Singapore Telecommunications Ltd. (SingTel), Southeast Asia's largest telecommunication company holds the remainder.
"Growth in cellular business has outperformed other telecommunication businesses. Telkom will remain focused on expanding the cellular business, which is becoming more competitive," Arwin said.
Telkomsel expects its users to grow by more than 50 percent this year to around 25 million this year, and at least by about 30 percent next year. The company had around 16 million subscribers last year.
Higher economic growth, which propelled stronger purchasing power, is driving cellular demand in Indonesia and the country's $258 billion a year economy is projected to grow by around 5.7 percent this year and 6.2 percent in 2006.
In the fixed-line business, Telkom is targeting users to reach some 11 million this year, with at least 15 percent growth in new users next year.
Currently, only about 4 percent of the country's population have access to fixed telephones, including fixed-line and fixed wireless phones. Telkom controls some 97 percent of the domestic market.
The government has urged local phone operators to build 10.7 million fixed telephone lines by the end of 2008. This year alone, Telkom and smaller rival PT Indosat are obliged to build at least 1.4 million lines.
Critics have said that the low penetration of fixed lines in rural area is because Telkom is reluctant to implement its public service obligations as mandated by the government. The business is a high-investment one with lower returns than other sectors.
Indonesia's infrastructure projects to create 1.9 mln jobs
The infrastructure projects the government will begin to implement in January 2006 are expected to absorb 1.9 million work force, Manpower and Transmigration Minister Fahmi Idris said.
After the completion of a number of infrastructure projects such as roads, bridges and their supporting facilities, some 1.9 million of the work force would find employment, Antara news agency Wednesday quoted the minister as saying on Tuesday.
Some 800,000 people have joined the ranks of the unemployed in various sectors this year, according to Fahmi.
On the other hand, the government would deregulate and eliminate bureaucracy in many sectors to improve the business climate. For example, the government would lower terminal and container handling charges at sea ports, he said.
The government would also shorten the procedures investors have to follow to begin their business in Indonesia. So far it takes more than 100 days for investors to obtain their operating licenses. This lead-time would be cut to a few weeks.
The government also plans to annul regional government regulations that are hampering investment, he said.
Source: Xinhua
The infrastructure projects the government will begin to implement in January 2006 are expected to absorb 1.9 million work force, Manpower and Transmigration Minister Fahmi Idris said.
After the completion of a number of infrastructure projects such as roads, bridges and their supporting facilities, some 1.9 million of the work force would find employment, Antara news agency Wednesday quoted the minister as saying on Tuesday.
Some 800,000 people have joined the ranks of the unemployed in various sectors this year, according to Fahmi.
On the other hand, the government would deregulate and eliminate bureaucracy in many sectors to improve the business climate. For example, the government would lower terminal and container handling charges at sea ports, he said.
The government would also shorten the procedures investors have to follow to begin their business in Indonesia. So far it takes more than 100 days for investors to obtain their operating licenses. This lead-time would be cut to a few weeks.
The government also plans to annul regional government regulations that are hampering investment, he said.
Source: Xinhua
Jakarta to have more retail space by end of year
Anissa S. Febrina, The Jakarta Post/Jakarta
With several large retail construction projects nearing completion, Jakarta will see more shopping spaces by the end of 2005, a property consultant says.
According to a report by Coldwell Banker Commercial (CBC), there will be more than 300,000 square meters (sqm) of new leasable retail spaces after five new malls in the capital are finished.
The five new areas are Senayan Park Center and Sudirman Place in South Jakarta, Kelapa Gading Square and Taman Palem Mall in North Jakarta and Grand Indonesia in Central Jakarta.
The Grand Indonesia mall is being built on the former site of the Inna Wisata Hotel, while the historic Hotel Indonesia is under renovation and will become a boutique hotel owned by PT Cipta Karya Bumi Indah, a subsidiary of the country's third-largest cigarette maker, PT Djarum.
In this year's third quarter alone, there were 138,925 sqm of leasable retail space delivered to the market with an occupancy rate of 97.5 percent for well-located space and 90.8 percent for those in secondary locations.
CBC estimated that during the next three years, there would be 1.4 million sqm of stock for leasable retail space.
Meanwhile, for the strata-titled sub sector, there would be a new supply of 412,500 sqm by the end of this year.
The new supply would come from the completion of Taman Palem Mall and Mega Glodok in North Jakarta, Lindeteves Trade Center and Gajah Mada Square in Kota, West Jakarta, as well as Pasar Cibubur and Cibubur Point in East Jakarta.
With the recent economic downturn, characterized by soaring inflation of 15.56 percent for the past 10 months -- occupancy rate in this sub-sector is estimated to decline.
Last week, the Indonesian Retail Merchants Association (Aprindo) reported that small and medium retailers were hit hard as prices of electricity went up.
This was a contrast from the bullish trend CBC reported in this year's third quarter, when some 163,890 sqm of strata-titled retail accommodation was sold, an increase of more than three times on the se
Anissa S. Febrina, The Jakarta Post/Jakarta
With several large retail construction projects nearing completion, Jakarta will see more shopping spaces by the end of 2005, a property consultant says.
According to a report by Coldwell Banker Commercial (CBC), there will be more than 300,000 square meters (sqm) of new leasable retail spaces after five new malls in the capital are finished.
The five new areas are Senayan Park Center and Sudirman Place in South Jakarta, Kelapa Gading Square and Taman Palem Mall in North Jakarta and Grand Indonesia in Central Jakarta.
The Grand Indonesia mall is being built on the former site of the Inna Wisata Hotel, while the historic Hotel Indonesia is under renovation and will become a boutique hotel owned by PT Cipta Karya Bumi Indah, a subsidiary of the country's third-largest cigarette maker, PT Djarum.
In this year's third quarter alone, there were 138,925 sqm of leasable retail space delivered to the market with an occupancy rate of 97.5 percent for well-located space and 90.8 percent for those in secondary locations.
CBC estimated that during the next three years, there would be 1.4 million sqm of stock for leasable retail space.
Meanwhile, for the strata-titled sub sector, there would be a new supply of 412,500 sqm by the end of this year.
The new supply would come from the completion of Taman Palem Mall and Mega Glodok in North Jakarta, Lindeteves Trade Center and Gajah Mada Square in Kota, West Jakarta, as well as Pasar Cibubur and Cibubur Point in East Jakarta.
With the recent economic downturn, characterized by soaring inflation of 15.56 percent for the past 10 months -- occupancy rate in this sub-sector is estimated to decline.
Last week, the Indonesian Retail Merchants Association (Aprindo) reported that small and medium retailers were hit hard as prices of electricity went up.
This was a contrast from the bullish trend CBC reported in this year's third quarter, when some 163,890 sqm of strata-titled retail accommodation was sold, an increase of more than three times on the se