Thursday, September 30, 2010
Vice President Promises 'No Tolerance' in Battle Against Human Trafficking
The national task force against human trafficking must step up its efforts to stem the rising number of women and children falling victim to the practice, the vice president said on Thursday. Speaking at the signing of a memorandum of understanding by several regional heads to tackle trafficking, Vice President Boediono said there should be "no tolerance" in cracking down on the practice. "From the legal and social aspects, the punishment for human traffickers must be tougher," he said on Thursday.

Constructive Communication for Papua
The central government under the leadership of President Susilo Bambang Yudhoyono is committed to continue establishing constructive dialogue with Papua. This commitment was made public through President Yudhoyono's state address on Aug. 16, 2010. It seems that the central government has already recognized the necessity of having communication between the Jakarta-based central government and Papuans.

Fight Against Corruption Aimed at Boosting Economic Growth: VP
The government firmly supports the Corruption Eradication Commission (KPK) because eliminating corruption is a priority in the government efforts to improve the national economy, Vic President Boediono said. "The government supports the work of KPK. It is expected that the parliament would choose the correct person for the KPK chairman next month," the vice president said when he acted as a keynote speaker at the Euromoney Conference here on Wednesday. He said that the corruption eradication efforts were made to create a clean government and to generate a fast economic growth in the country.

Budget Deficit to be Kept at 1.7 Percent: Minister
Finance Minister Agus Martowardojo said the government would keep the 2011 state budget deficit at 1.7 percent. "The world considers Indonesia as a country which has a credible budget because it sets a low deficit," the finance minister said Wednesday night. He said Indonesia`s economy was in a very good shape and this led other countries to trust Indonesia because its fiscal deficit was low.

RI Confident to Reach 7 Million of International Visitors by Year's End
Culture and Tourism Minister Jero Wacik has said that he was confident the country would have hosted seven million international visitors by end of this year. "Our tourism growth has increased by 13 percent in August this year, which is quite a significant figure as compared to nine percent growth in the same period last year," Jero said Thursday in Jakarta as quoted by Antara. The seven-million of visitors target would be accomplished if the increasing tourism growth could be maintained, he added.

Indonesian Parliament to Guard MDGs : Legislator
Indonesia, as one of the countries with a parliament that has a special committee on MDGs, will continuously guard the process of achieving the eight millennium development goals (MDGs) by 2015. "We will report that the Indonesian parliament is ready to stand up for MDGs," Nurhayati Ali Assegaf, chairman of the House Working Committee for MDGs, told Antara at the UN Headquarters in New York on Tuesday. The House`s commitment to guarding the achievement of MDGs was revealed during the inter-Parliament Union Meeting and UN Millennium Campaign on the sidelines of the UN General Assembly on MDGs on September 20-22.

Wednesday, September 29, 2010
World Bank: Indonesia's Economic Fundamentals Strong
Indonesia`s economic fundamentals are now strong enabling the government to shift its policy focus from short-term uncertainty to investment achievement, especially in the infrastructure sector, a World Bank economist said. "Indonesia has recorded strong economic growth against a backdrop of the world`s economic uncertainty and volatility," the bank`s senior economist for Indonesia, Enrique Blanco Armas, said in a quarterly economic development exposure here on Tuesday. He said the country`s economic growth in the second quarter reached 6.2 percent, which was the highest since the 2008 crisis driven by domestic demand especially private sector consumption.

RI Calls For Enhanced Ties Between UN And Regional Organizations
Indonesia has urged the United Nations to enhance cooperation with regional organizations, especially the Association of Southeast Asian Nations (ASEAN), to face the challenges of the 21st Century. "Many global problems become more manageable if there are simultaneous efforts to address them at the regional level," Foreign Affairs Minister Marty Natalegawa said here Tuesday evening in his address during the General Assembly`s annual high-level debate. ASEAN and other nations in the larger Asia-Pacific region were building a regional architecture that would bring about and sustain dynamic equilibrium in the region, he said.

Investment-Grade Rating To Come Next Year: Agus
The government will not allow a bubble to occur in the country's financial markets, and will likely receive an investment-grade credit rating early next year, Finance Minister Agus Martowardojo said on Wednesday night. Speaking at a dinner of the Jakarta Foreign Correspondents Club, Agus said the inflows of foreign money reflected confidence in Indonesia's economy. "We would like to send a signal, convince the world and the markets, that we won't allow any bubbles in Indonesia," he said.

RI Supports Fact-Finding Mission's Conclusions on Gaza Flotilla Violence
Indonesia fully supports the report of a UN-sanctioned independent fact-finding mission condemning the interception of a humanitarian aid flotilla for Gaza by Israel a few months ago, a session of the UN Human Rights Council in Geneva, Switzerland, was told on Wednesday. One of the conclusions of the report was that the interception of the flotilla by Israel had been unlawful and the use of force by Israeli soldiers had been "unnecessary, disproportionate and excessive." "Indonesia also concurs with the report`s findings that the subsequent detention of the passengers had been illegal and that the treatment of the activists had been cruel, inhuman and disproportionate," Desra Percaya, Indonesian Charge d`Affaires/Deputy Representative at the 15th Session of the Human Rights Council in Geneva, said.

Indonesia Finance Ministry Seeks to Collect Rp 100 Trillion More in Taxes in 2011
Indonesia aims to lift tax collection by Rp 100 trillion ($11.17 billion) in 2011 to 12 percent of gross domestic product, Finance Minister Agus Martowardojo said on Wednesday. "Next year, for 2011, we will increase tax by an additional Rp 100 trillion. The target for this year is around 700 trillion (rupiah). So it will become 800 trillion (rupiah). It will be 12 percent of GDP," he told Reuters. The government is trying to increase tax collection to improve its long-term finances as it seeks to achieve an investment grade credit rating in the coming years.

VP : All Parties Responsible For Poverty Eradication
Poverty-related problems cannot be borne only by the government but all parties in the country should be involved in solving them, Vice President Boediono said. "My idea of solving and tackling all kinds of poverty-related problems is by motivating all parties to synchronize their actions and activities in reducing poverty," he said in his keynote speech at the third International Conference of Corporate Social Responsibility (CSR) on Wednesday in Jakarta. He said one of the basic functions of the state was to eradicate poverty in tandem with other problems without neglecting other interests.

RI to Become Automobile Production Hubh
The implementation of the Association of Southeast Asian Nations (ASEAN) free trade agreement (AFTA) and recent political turmoil in Thailand have opened up an opportunity for Indonesia to become the regional production hub for automobiles and auto components. A deputy chairman of the Indonesian Automotive Industry Association (Gaikindo), Johnny Darmawan, said Indonesia had the chance of replacing Thailand, which is currently the production base for automobile and component manufacturing in Southeast Asia, for several years to come. "Fundamentally, Indonesia is a very strong candidate to replace Thailand. The country is rich in natural resources and has a potential domestic market," he told The Jakarta Post Wednesday.

BKPM to Cooperate With PHRI to Promote Investment
The Capital Investment Coordinating Board (BKPM) and the Indonesia Restaurant and Hotel Association (IRHA) have agreed to cooperate in promoting their common visions and missions to increase investment at home. BKPM head Gita Wirjawan and PHRI chief Yanti Sukamdani signed a memorandum of understanding here on Wednesday regarding their cooperation to promote the vision and mission. Gita said that the cooperation comprised promotions and placement of BKPM brochures on investment data at hotels throughout the country.

Tuesday, September 28, 2010
President Ramos-Horta Congratulates New Indonesia Ambassador to the U. S.
While attending the 65th session of the U. N. General Assembly in New York, President Ramos-Horta congratulated the new Indonesia's Ambassador to the U.S., Dino Patti Djalal. "I am delighted to learn that Ambassador Dino Patti Djalal has presented his credentials to President Barack Obama. I have known and worked with Ambassador Dino for many years, and he has certainly earned my respect and also that of Prime Minister Xanana Gusmao. As a junior diplomat, he served in Timor-Leste with distinction and integrity during the troubled times of 1999, and he has publicly denounced the breakdown of law and order that followed the referendum. As foreign policy advisor to President Susilo Bambang Yudhoyono, Ambassador Dino Patti Djalal became a key figure in the efforts to repair relations between Indonesia and Timor-Leste.

World Bank: RI Continuing to Record Robust Growth
The World Bank in its economic quarterly report on Indonesia released on Tuesday, noted that the country`s economy continues to record robust growth, unlike many of the world's major economies. "This growth has allowed the policy focus to shift from near-term uncertainty towards laying the foundations for longer-term growth to allow the government to better support investment and stronger social outcomes for all Indonesians," the bank says in its quarterly report.

Financial Sector Can Play Decisive Role in Eradicating Poverty: Darmin
Access to funds is indispensable in eradicating poverty meaning that the financial sector can play a decisive role in this regard by making it easier for small-scale enterprises to draw on financing sources, Bank Indonesia Governor Darmin Nasution. Darmin made the remark at a three-day gathering of influential financial policy makers which was opened earlier by President Susilo Bambang Yudhoyono. Darmin spoke about the importance of optimizing access for small and medium-scale enterprises (SMEs) to funding sources in a keynote speech at the opening session of the Alliance for Financial Inclusion (AFI) Global Policy Forum here Monday.

RI Disappointed With Israel For Not Extending Moratorium
The Indonesian government was disappointed with Israel for not extending moratorium of West Bank settlement. "The Israeli decision is disappointing and unacceptable. We are now having talks with other countries about further steps to support Palestine," Minister of Foreign Affairs Marty Natalegawa said here on Monday after signing the Convention on Protection of All Persons from Forced Disappearances at the United Nations headquarters in New York. Marty said the forum of four developing countries Indonesia, Brazil, India and South Africa, would determine further steps to support Palestine and secure the peace process "From Israel`s irresponsible attitude," Marty said.

ADB Lifts Forecasts for Asia, Indonesia
The Asian Development Bank raised its forecast for the region's economic growth this year, crediting a rapid recovery in exports even as it warned the risk of another recession in advanced countries had not completely receded. The Manila-based development bank said on Tuesday it now expected developing Asia to grow 8.2 percent this year compared with a projection of 7.5 percent growth issued in April. The forecast, which did not include Japan, covered 44 developing and newly industrialized nations in Asia.

KPK to Collaborate With G20 to Eradicate Corruption
Indonesia's anti-graft agency KPK in collaboration with representatives from G-20 is designing a working plan on corruption eradication to be presented at the G20 Summit next month in Seoul. KPK (Corruption Eradication Commission) Deputy Chief Moch Jasin said here on Tuesday at a meeting of the G20 anti-corruption working group, Indonesia and France had been chosen to become the joint chair of the group. He said he himself had been appointed to be the chairman of the group flanked by Gunadi, who is the deputy chairman of the Financial Transactions Analysis and Reporting Center (PPATK) and Febryan Ruddyard, the foreign ministry`s director of the KIPS.

Budget For Infrastructure in 2011 Up Rp18 Trillion
Vice Minister for Financial Affairs Anny Ratnawati said the budget for infrastructure in 2011 would increase Rp18 trillion to Rp126 trillion from Rp108 trillion in 2010. "Investment in the infrastructural sector would be carried out through a government-private sector partnership program. In 2010, the budget for it is set at Rp108 trillion, and it will increase to Rp126 trillion in 2011," the vice minister said here on Tuesday. She said that the budget in the infrastructural sector should be managed as well as possible so that Indonesia`s competitiveness could be increased.

RI in Middle of Road in MDGs Progress
Indonesia is faring better than many developing countries in its struggle to achieve the Millennium Development Goals (MDGs), but far worse than others, including several of its neighbors, MDGs envoy Nila Moeloek says. Nila, who attended last week's MDGs summit in New York, said on Tuesday that Indonesia was among 189 nations that had announced reports on their progress to meet the targets, which are designed to fight poverty.

RI Signs UN Convention On Enforced Disappearance
Indonesian Foreign Affairs Minister Marty Natalegawa signed the Convention for The Protection of All Persons from Enforced Disappearances here on Monday (Sept. 27). The Convention for the Protection of All Persons from Enforced Disappearance, adopted on 20 December 2006 by the UN General Assembly, has been signed by a total of 84 nations so far. Minister Marty Natalegawa signed the Convention on the sidelines of the 65th General Assembly at the UN Headquarters.

Monday, September 27, 2010
Jakarta Stocks Surge Higher on US Data, Rupiah Steady Near Three-Year High
The Indonesian stock market joined in a global rally on Monday as better-than-expected economic data out of the United States on Friday boosted confidence in the global economic recovery, pushing commodities prices higher. The Jakarta Composite Index surged 70.41 points, or 2.1 percent, to close at 3,468.04, as it continued its march to a new all-time high. Volume was heavy, with about 6.97 billion shares worth Rp 6.24 trillion ($692.5 million) changing hands. Gainers trounced decliners 159 to 58. The JCI has risen 19 percent in the third quarter, making it Southeast Asia's third-best performer after the Philippines' 22 percent and Thailand's 21 percent over the period.

Boediono: US' Interest in Investing in Indonesia on the Rise
Vice President Boediono said the enthusiasm of American businessmen to invest in Indonesia was on the rise. "Compared to six months ago when I met them in Washington, they are more enthusiastic this time," he said following a meeting with over 70 American businessmen at the Hotel Intercontinental Hotel, New York City, yesterday. The meeting, planned by Investment Coordinating Board's (BKPM) chief Gita Wirjawan, was attended by John Rice (CEO of GE Infrastructure), Leonard Condon (Vice President of Phillip Morris), and Clay Thompson (Director of Catepillar). Many businessmen who have never invested in Indonesia also appeared at the lunch meeting.

Indonesia Writes to US Congress about Papua
The Indonesian Ambassador to the US, Dino Patti Djalal, said he was not too concerned about the hearing on Papua issues in the congress, because the hearing was only attended by three Congress people. According to Dino, the US government should not change its stance. "In this matter, there are more friends of Indonesia than critics in Congress," Dino said at a press conference with Vice President Boediono in New York, yesterday (23/9). The Ambassador also wrote to Eni Faleomavaega, a member of the US Congress, who is the initiator of the hearing. Dino wrote the letter one day before the hearing on September 22. He mentioned in his letter that in terms of de facto and de jure, Indonesia's regional unity, covering Papua, has been acknowledged by the entire United Nations.

President to Open Global Policy Forum
President Susilo Bambang Yudhoyono is scheduled to open Global Policy Forum 2010 in Jimbaran district, Bali, on Monday. The forum, organized by Alliance for Financial Inclusion (AFI) under the initiative of G-10, will be participated in by central bank governors from countries such as Kenya, Bangladesh, Nigeria, Tanzania, Mexico, Peru, the Philippines, Pakistan, and Namibia. A breakthrough of financial services for the community to reduce poverty will be discussed at the Global Policy Forum, to be opened by President Yudhoyono on Monday.

Financial ID Number Aims to Bring More People to Banking
Bank Indonesia said on Monday that it would expand a program to issue financial identity numbers to help track the financial performance and credit history of people now denied bank services because they lacked such a history. The announcement came as President Susilo Bambang Yudhoyono stressed the need to make the banking system more accessible to ordinary people, especially the poor. Speaking at the opening of the Alliance for Financial Inclusion's global forum in Bali, Yudhoyono said that bringing more people into the financial system was a proven way to reduce poverty and stimulate the economy.

New Chairman Expected to Energize Subzero-Growth Industries
The newly elected chairman of the Indonesian Chamber of Commerce and Industry (Kadin) should be able to energize domestic industries which have for years seen negative growth, a businessmen`s association leader said. Erwin Aksa, chairman of the Indonesian Young Entrepreneurs Association (HIPMI), said here Saturday the number of domestic industries that underwent negative growth had increased since the coming into force of the ASEAN-China Free Trade Agreement (ACFTA). In 2007, negative-growth suffering industries were to be found in three sectors but since ACFTA such industries existed in five sectors, namely steel, textiles, timber, and manufacturing, he said.

President: Financial Inclusion to Address Poverty Must Be Innovative
President Susilo Bambang Yudhoyono said financial inclusion of the poor should be innovative and not be limited to enabling them just to have savings accounts or obtain smallholders credits. "It must not be business as usual like the regular financial services. For financial inclusion to promote growth, it has to move from `opening an account` in a bank, to regular savings and finally to a relationship which enables the borrower to access loans on a regular basis," the head of state said here Monday in his address at the Global Policy Forum of the Alliance of Financial Inclusion (AFI). He believed that financial inclusion is essential to the efforts in fighting poverty and a critical instrument to achieve the Millennium Development Goals.

President: RI`s Migrant Workers Send Home US$6 Bln Annually
President Susilo Bambang Yudhoyono said that 6 billion dollars annually were sent back to Indonesia by millions of Indonesian migrant workers through the formal banking system. "Many of those Indonesian were not accustomed to the banking services when they were in Indonesia. This shows that traditional mindset can be changed and the migrant workers are in fact going to the bank," the head of state in his opening address at the Second Alliance Financial Inclusion (AFI) Global Policy Forum, here, Monday. According to Yudhoyono, developing people`s financial literacy is as important as developing their financial capability. It was important that people were taught about the importance and benefit of accessing financial services.

President Mentions "Eat, Pray, And Love" Film to Promote Bali
President Susilo Bambang Yudhoyono mentioned Julia Roberts' film "East, Pray and Love" to promote Bali Island to participants of the 2010 Global Policy Forum being here Monday. Bali was a few months ago the location of part of the scenario of the film "Eat, Pray, and Love" starring Julia Roberts, the head of state said in his address opening the Forum. The film told the story of a woman who, after a long search, finally found her love and peace in this beautiful island, he said.

TNI to Support Terrorism Eradication Drive
The National Defense Forces is ready to support the police in terrorism eradication in Aceh province. "We have made our troop available to support the police in combating terrorism in Aceh if we are asked to do so," Iskandar Muda Military Commander May Gen Hambali Hanafiah said here on Monday. Hambali made the statement after the transfer of function of Iskandar Muda Regional Military Commander Brig Gen Ervin Triassunu to Brig Gen Pandu Wibowo.

Monday, September 20, 2010
Foreign Investment a Big Boon for Many Indonesian Firms
The mix of stability, relatively calm politics and solid economic growth is seeing investors clamor to gain a foothold in Indonesia. Foreigners have been pouring money into Southeast Asia's emerging giant - the region's biggest economy - which was largely unaffected by the global financial crisis due to strong domestic demand and limited reliance on wobbly Western export markets.

News Focus: Central Bank's New Regulations Boost Real Sector
The development of the real sector in the country which so far only runs at a snail's pace will find a new boost when newly-issued regulations of Bank Indonesia (BI/the central bank) are effective beginning next year. Thus, the BI policies regarding banks' minimum reserve requirement (GWM) and loan-to-deposit ratio (LDR) will in turn generate the country`s economic development in the long run. "If applied consistently, the BI policy on LDR will help develop the real sector," Chairman of the Indonesian Young Entrepreneurs Association (HIPMI) Erwin Aksa said in a press statement on Sunday.

Indonesia Represented as World Powers Meet to Tackle Climate Change
The 17 nations responsible for 80 percent of carbon emissions blamed for global warming will seek to unblock stalled climate negotiations this week but analysts expect little progress. The two-day Major Economies Forum on Energy and Climate kicks off on Monday and will include top government envoys, including United States special envoy for climate change Todd Stern. US President Barack Obama launched the meetings to facilitate climate talks in the wake of last year's disappointing United Nations conference in Copenhagen.

CPO to Contribute $80.9 Bln to RI's Economy
The oil palm industry is expected to contribute US$80.9 billion to the national economy in the next four years, an expert said. Over the period the oil palm industry would serve as the main engine of the national economy because of its role in contributing foreign exchange earnings to the state coffers and in promoting the people`s living standard, Prof Dr Erliza Hambali MSi of the Bogor Institute of Agriculture (IPB) said here on Sunday. With the projected foreign exchange earnings of US$80.9 billion in the 2010-2014 period, crude palm oil would serve as the country`s key food commodity, he said.

More Gains Expected From Stocks Despite Profit-Taking
The country's benchmark stock index, which reached new heights last week, might be vulnerable to some profit-taking this week, but the short-term bullish trend remained intact, analysts said on Sunday. Continued inflows of foreign capital seeking higher returns would keep the Jakarta Composite Index at elevated levels in the near term, they said. The JCI posted its biggest weekly gain of the year last week, rising 4.7 percent in three days as trading resumed following the Idul Fitri holiday. The index has gained ground for the past three consecutive weeks, as well as in four of the past five weeks and in six of the past eight trading sessions.

RI Maritime Task-Force Leaves for Lebanon
An Indonesian maritime task-force for peace-keeping deployment in Lebanon left for the Middle-eastern country, Monday, after a send-off ceremony presided over by the Eastern Indonesia Fleet Commander Admiral Bambang Suwarto. Suwarto briefed the 100-personnel task-force under the Garuda VIII-B Contingent before they boarded the Indonesian warship KRI Frans Kaisiepo 386, under the command of Lt. Colonel Wasis Priyono for shipment to Lebanon via Jakarta, Cochin, Port Said and Beirut.

Investors most Interested in Food and Transportation Industries
Most investments in Indonesia are in transportation, service, food and beverages, machine industry and chemical industries. The Investment Coordinating Board records an investment of Rp6.164 trillion in the second quarter. This is the highest compared to other sectors. This tendency, said the Deputy Chairman of The Investment Coordinating Board, Yus'an not only happened for domestic investment.

Wednesday, September 15, 2010
JCI Records Biggest Gain in 3 Months as Investors Make Up for Lost Time
Indonesia's benchmark stock index shot up on huge volume on Wednesday, posting its biggest gain in more than three months as it played catch-up with regional markets after a long holiday. The Jakarta Composite Index leaped higher by 126.14 points, or 3.9 percent, to a record high of 3,357.03. It was its steepest gain since May 26. The market was closed for the Idul Fitri holiday from Sept. 8 through Tuesday. Analysts said investors were eager to buy Indonesian stocks following a raft of encouraging economic news in recent days.

Finance Ministry Planning 2011 Tax Holiday for Investors
Mochamad Tjiptardjo, general director of taxation, said on Tuesday that the Finance Ministry was preparing to offer investment incentives in the form of a tax holiday. "The [ministry] has formed a team that is currently working on the tax holiday incentive," he said after a gathering at the ministry in Jakarta. "If possible, it can be given on Jan. 1 [next year]." The tax chief said the ministry would announce the schedule for the tax holiday after a review.

Big Potential in Indonesia for Unconventional Gas
Indonesia, Southeast Asia's biggest oil and gas producer, may become the largest producer of unconventional gas in the region, Wood Mackenzie Research Consultancy said in a report. Indonesia may produce gas lodged in crevices of coal deposits at an initial rate of 22 million cubic feet a day by 2013 and boost it to 900 million in 2020 and 1.3 billion in 2025, said Edinburgh-based Wood Mackenzie. "As conventional domestic gas supply starts to decrease around 2020, the leading coal-bed methane players should be well positioned to take advantage," Jamie Taylor, an analyst at the energy consultants, said in the report.

RI Soon Provides 1.73 Million Dollars to Pakistan
The Indonesian government will soon provide 1.73 million dollars in cash to the Pakistani government to help flood victims. "The cash donation will be transferred through the Indonesian embassy in Pakistan on Wednesday (Sept 14)," Coordinating Minister for People`s Welfare Agung Laksono said on Tuesday. The minister said the assistance will be the second-stage help from the Indonesian government to Pakistan.

America Honors Indonesian Filmmaker
Last week, Hillary Rodham Clinton, US secretary of state, met with the winners of the 2010 Democracy Video Challenge at the Treaty Room of the White House in Washington. "The videos we are honoring today capture essential truths about democracy across the world and respond to the deepest yearning of human beings to have a right to their own lives and their own dreams," she told them. "Democracy is about fair play. Democracy equalizes the voices of people. And democracy is a learning process."

Indonesia May Grow Tiger Population Beyond India's
Indonesia could be on track to host the world's largest tiger population by 2020, a scientist suggests, but only if the protection of key habitats is stepped up. A study published in Tuesday's edition of the peer-reviewed journal PLoS Biology called for conservationists to protect tiger populations in a few concentrated breeding grounds in Asia instead of trying to safeguard the vast, surrounding landscapes, if they want to save the big cats from extinction. One of the criticisms about recent tiger conservation efforts is that they extend well beyond protected areas, managing ecosystems and working with local communities to help tiger and human populations coexist.

BI: Basel 3 New Rule Poses No Problem for Indonesia
Bank Indonesia Deputy Governor Halim Alamsyah said the country`s banks would have no problems implementing the new Basel 3 capital ruling. "Transition for the implementation of the new Basel 3 rule will take long. It will even last until 2014 under international standards. With regard to Tier 1 rule which requires a minimum capital of 4.5 percent we have been far above that level. The average Tier 1 capital of the Indonesian banks generally have already reached above 14 percent. Therefore the new rule would not be a problem for the Indonesian banks," he said here on Tuesday.

New Reserve Requirement, LDR to Boost Competition: BI
Bank Indonesia (BI) is upbeat in its newly-issued regulation of minimum reserve requirement based on loan-to-deposit ratio (LDR) will encourage sound competition among banks. "Banks which raise their lending rates mean that they transfer costs to customers to prevent a shortfall in their margins. However, they will face competition from other banks which do not raise their lending rates and reduce their margins because their margins are already high. Let`s see how the competition will look like," BI Deputy Governor Halim Alamsyah said here on Tuesday.

Tuesday, September 14, 2010
Indonesian President Condemns Attack on Christians in Bekasi
Indonesian President Susilo Bambang Yudhoyono on Tuesday condemned an armed attack on Christian church leaders in Bekasi and called on police to solve the case as quickly as possible. He said Sunday's knife attack by unknown assailants, which left one church elder badly injured and a priest with head wounds, was a highly sensitive matter for the mainly Muslim archipelago. "There is no space for violence from and against anyone for any reason, especially over the sensitive issue of inter-religious community relationships in our country," he told reporters. "I have ordered the police to find the attackers and to prosecute them according to our law."

G-20 Should Agree on IMF Crisis Fund in November, Pangestu Says
n International Monetary Fund safety net that emerging nations can draw on in a financial crisis to stem capital outflows should be agreed by the Group of 20 nations in November, Indonesia's Minister of Trade Mari Elka Pangestu said. Learning from the 1997 Asian financial crisis, when hundreds of Indonesian companies and banks become insolvent, the country turned to Japan, Australia, the World Bank and the Asian Development Bank for around $5 billion of backup capital to support its economy after Lehman Brothers collapsed in 2008, she said in a Bloomberg interview.

Harvard Kennedy School to Publish Book on Indonesia
The Harvard Kennedy School of Government and Rajawali Foundation will publish a book about Indonesia entitled `Indonesia Menentukan Nasib, dari Reformasi ke Transformasi Kelembagaan`(Indonesia Determines its fate, from Reform to Institutional Transformation). The 222-page book will present facts, constraints and solutions for Indonesia to pursue its development which has been lagging behind development in other Asian countries such as China, Thailand, India, Malaysia and even the Philippines, Fritz E Simanjuntak, president of Rajawali Foundation, said here Tuesday.

Eat, Pray, Love, But Not Cheaply, in Bali
Hotel prices on the resort Island of Bali have soared 57 percent thanks in part to the Hollywood hit "Eat Pray Love." Hotel provider Hotels.com's bi-annual hotel price index, released on Tuesday, found that hotel prices increased from an average $129 per night to $203 to become the eighth most expensive destination for travelers from the United States. The survey showed that some of the greatest price rises happened in cities tied to major events.

Domestic Companies Should Take Over Expired Foreign Oil, Gas Contracts
Noting the work contracts of certain foreign companies on a few oil and gas blocks are to expire in 2011, a Kadin executive called on the government to let domestic companies take over the blocks. Riqwan Hisjam, the Indonesian Chamber of Commerce and Industry (Kadin) vice chairman for organizational affairs, said here Tuesday, the contracts of Kodeco Energy and Conoco Pillips on the Western Madura offshore blocks would expire in March, 2011. Therefore, he called on the Oil and Gas Regulatory Body (BP Migas) to use the momentum to give domestic oil and gas companies a greater share in the development of the country`s fossil fuel resources.

Monday, September 13, 2010
RI's Global Competitiveness Index Up 10 Notches to 44th
Indonesia's global competitiveness ranking (CGR) rose by 10 notches to 44th this year mainly because of improving macroeconomic indicators and health and primary education, according to a World Economic Forum (WEF) report. Indonesia's macroeconomic indicators rose from 52nd to 34th and health and primary education from 82nd to 62nd, the Indonesian ambassador/permanent representative to the UN, WTO and other international organizations in Geneva, Dian Triansyah Djani, said in a statement.

US Provides Aid to Victims of Mount Sinabung Eruption
The U.S. government, through the Office of Foreign Disaster Assistance (OFDA) of the U.S. Agency for International Development (USAID), is providing financial and technical assistance to residents impacted by the recent eruption of Mount Sinabung in Karo regency, North Sumatra. The immediate needs of the displaced Indonesians are the priority and the assistance amount currently totals $50,000, according to a press statement by the U.S. Embassy released Monday.

New Bank Standards to Favor Indonesia
Banks in Asia, and especially in Indonesia, have high capital ratios and would be able to avoid the degree of fund-raising needed elsewhere to meet a new international standard, analysts said on Monday. Purbaya Yudhi Sadewa, an analyst at Indonesia's state-run Danareksa Research Institute, said the country's banks would have no problem complying with the Basel III requirements.

Foreign Appetite Drives Rupiah to 1-Month High
The rupiah surged to a one-month high on Monday as demand for the nation's assets among foreign investors remained strong. The rupiah reached 8,933 against the US dollar as of 5 p.m. in Jakarta, gaining 0.2 percent since Friday afternoon. Monday's trading level was the rupiah's strongest since Aug. 9, and just below a three-year high of 8,905 set on Aug. 3. The rupiah has gained nearly 5 percent this year, making it the region's third-best performing currency.

Economist: 1.7 Pct Budget Deficit Still Realistic
The government-set budget deficit of 1.7 percent of GDP (gross domestic product) for 2011 is still realistic as it is far below the tolerable deficit limit of 3 percent, an economist said. "The maximum deficit of 3 percent is equivalent to the natural unemployment rate of 3 percent," Thomas Ola Langoday of Widya Mandira Catholic University (Unwira) in Kupang said on Monday. He was responding to concerns that the government may not be consistent in maintaining the budget deficit target of 1.7 percent for 2011.

Government Plans A Separated Tax Directorate
The government has disclosed plan to separate the tax office into two divisions this year concentrating on policy making and implementation that is expected to improve the corrupt directorate general's performance. In an Idul Fitri occassion at his official residence in Jakarta Finance Minister Agus Martowardojo said the "development planning" for the division under his department in the near future includes separating between its function as regulation maker and as tax administrators, which Agus said is expected to create a more independent tax office with less conflict of interests between its staffs.

Thursday, September 9, 2010
Minister: Indonesia More Competitive Than Ever
Indonesia moved up by 10 places to 44th in the latest Global Competitiveness Report (GCR) for 2010-2011 published in the World Economic Forum in Beijing on Thursday. Trade Minister Mari Elka Pangestu said Indonesia was deemed capable of maintaining its macro-economy at a healthy level and improvement in education sector despite the global crisis.

Idul Fitri and Spiritual Renewal
Idul Fitri is only days away, when Muslims across the globe will soon mark the end of the Ramadan fasting month - an annual ritual when Muslims are required not only to refrain from food, drink and sex from sunrise till sunset, but also expected to renew their spiritual commitments. The Idul Fitri celebration, locally known as Lebaran, is believed to broaden Islamic piety after the spiritual sacrifices willfully made during Ramadan.

President Sends Letter to Obama to Stop Quran-Burning Plan
President Susilo Bambang Yudhoyono has sent a letter to US President Barack Obama to stop and prevent a plan to burn copies of Islam`s holy book, the Quran, by Pastor Terry Jones. "President Yudhoyono has sent a letter to US President Barack Obama. In the letter, the president asked Obama to `stop and prevent` Terry Jones who plans to humiliate Muslims by burning copies of the Quran at his headquarters in Gainesville, Florida, on September 11, 2010," Heru Lelono, a special presidential aide, said here Thursday.

Obama Urged to Foil "Burning Qoran Campaign"
US President Barack Obama needs to foil the efforts of Christian extremists in America to launch their "Burn a Koran Day" campaign on September 11, an Indonesian scholar said. "All Muslims in the world will not accept the burning of their holy Quran. There is no acceptable reason at all for anybody to do that," Syahganda Nainggolan said here Wednesday.

US Embassy Conveys Idul Fitri Greetings to Indonesian Muslims
The US Embassy in Jakarta, on behalf of the US Government and people, has sent Idul Fitri wishes to Indonesian Muslims on the occasion of the Islamic festivity which falls on Sept. 10. "The staff of the US Embassy in Indonesia would like to express our sincere good wishes for a joyous Idul Fitri to the Muslim community throughout our host nation. We understand and appreciate the warm spirit of peace, forgiveness and compassion that this holy time brings to Indonesia and Muslims around the world," US Embassy spokesperson Paul Belmont said in a statement Wednesday (Sept 8).

Wednesday, September 8, 2010
Indonesia's New Antiterror Chief Seeks Tougher Laws
The new chief of Indonesia's antiterror agency has complained that courts were being too easy on terrorists and called for tougher laws to fight jihadist extremists. National Anti-Terror Agency (BNPT) chief Ansyaad Mbai said there was an "urgent need" to amend antiterror laws following a series of attacks since 2000. He said sentences should be lengthened, preparatory activities such as militant training and incitement should be criminalized, and police should be able to hold suspects for longer before they must be charged or released.

RI, Malaysian Foreign Ministers Touch on Workers Protection
The Indonesian and Malaysian foreign ministers in their meeting in Kinabalu also discussed protection of Indonesian migrant workers (TKI) in Malaysia, besides territorial borders and the August 13 Bintan waters incident which had strained the bilateral relations. "The discussions on TKI protection included Indonesia`s request that Malaysia reduced the death sentences it had imposed on Indonesian criminals," Foreign Minister Marty Natalegawa said in a joint press conference with his Malaysian counterpart Anifah Aman in Kinabalu city on Monday.

Ministry Selecting State Companies Ready to Conduct IPO
The state enterprises ministry is selecting state-owned companies which are ready to go public next year. State Enterprises Minister Mustafa Abubakar said at the Indonesia Stock Exchange here on Wednesday that some of the companies being processed are operating in the fields of services, energy and insurance.

Rupiah Closes Stronger at Rp 8,990 Late Wednesday
The rupiah closed stronger at Rp8,990 per dollar in the Jakarta interbank spot market late Wednesday on rising demand for the Indonesian currency. The rupiah rose 17 points to Rp8,990-Rp9,000 per dollar late Wednesday from Rp9,007-Rp9,017 the day before. Demand for the rupiah increased toward late Wednesday causing the local unit to strengthen against the greenback, Daniel Budi Rahayu, credit director of PT Bank Mega Tbk, said.

RI Seeking to Expand Export Market in China
Indonesia is seeking to expand its export market in China by making inroads into Chongqin province. Trade Minister Mari Elka Pangestu said in a press conference here on Wednesday she planned to hold talks with Chongqin Governor Bo Xilai on the sidelines of the World Expo Development Forum to be held in the province on September 10, 201o with regard to the effort. "Chongqin is in the western part of China which they will develop, and it is now already developing quite fast. The secretary general of the Communist Party in the region is former minister of trade Bo Xilai. We need to make approaches with regard to expanding the coverage of our export goods in China," she said.

RI to Import Sugar to Build Up Stocks
Indonesia plans to import sugar to meet the need for the commodity in the first five months of next year, Trade Minister Mari Elka Pangestu said. She said at a press conference here on Wednesday the government was now still finishing the calculation of the need for the period when there would be no domestic sugar production. "The decision to import sugar to build up stocks for the first five months next year has already been finalized, confirmed but how much it will be or who will conduct the import and which ports are to receive the imports still has to be determined," she said.

Government Continues Supporting Domestic CPO Industry
The government continues to support domestic crude palm oil (CPO) producers despite Burger King franchise company`s decision to stop buying CPO from Indonesian companies that have allegedly destroyed tropical forests in the country, a minister said. "There have been many explanations but the government continues to support our CPO producers. We have to support our CPO industries that do not damage the environment," Coordinating Minister for Economic Affairs Hatta Rajasa said here Wednesday.

Tuesday, September 7, 2010
Jakarta Composite Index Hits Fresh Record Before Traders Pack Up for Idul Fitri
The Jakarta Composite Index rose to a record close on Tuesday, the last day of trading before the Idul Fitri holiday, while other Asian markets ended mixed. The JCI advanced 13.74 points, or 0.4 percent, to 3,230.89, marking a third-straight day of record results. Some 5.2 billion shares worth Rp 3.7 trillion ($411 million) changed hands.

Indonesia Capable to Reduce Gas Emission By 2.3 Gigatons
Indonesia is capable to reduce green house gas emission by 2.3 gigatons in 2030, or equivalent to 46 percent reduction in 2005. It was the result of comprehensive study conducted by the National Council on Climate Change (DNPI) with 2005 latest data. The result of the study was familiarized directly by DNPI executive chairman Rachmat Witoelar in the company of DNPI secretary Agus Purnomo here on Monday.

Anti-Corruption Curriculum to Begin in 2011
The National Education Ministry is collaborating with the Corruption Eradication Commission (KPK) to prepare a curriculum on anti-corruption education which is scheduled to be implemented in 2011. "This education is key so that 10 to 15 years later children will have a corruption-free way of thinking," said National Education Minister Muhammad Nuh at the KPK building yesterday.

BI's Keyrate Policy Spurring Foreign Investors' Activity
Bank Indonesia (BI)`s policy to keep its BI Rate at 6.5 percent flat for the 14th consecutive time is deemed to have spurred investors, especially foreign ones, to be more active at the Jakarta Stock Exchange. "BI has maintained its rate at the 6.5 percent level and this has prompted investors, especially foreign ones, to be more active in both the stock and financial markets," said Edwin Sinaga, a stock market analyst and president director of Jakarta-based PT Finan Corpindo Nusa, Monday.

President Presents Aid for Mt Sinabung Eruption Victims
President Susilo Bambang Yudhoyono on Monday handed Rp3 billion in aid to the Tanah Karo district administration to help alleviate the financial burden of Mount Sinabung eruption victims. The aid consisted of Rp2 billion from the Social Services Ministry and Rp 1 billion from the Presidential Office, he said at a meeting with North Sumatra provincial government officials at the Medan air base here.

Bank Indonesia Prefers Tightening Rules for Lenders Over Rate Hike
Bank Indonesia Governor Darmin Nasution said he wanted to avoid increasing interest rates, counting on lending and reserve rules for banks to contain inflation and stoke growth in Southeast Asia's biggest economy. "As long as we still can manage our monetary variables by other instruments, we will try to avoid changing the interest rate," he said late on Tuesday. By raising the amount banks must hold in reserve and setting loan-to-deposit ratio guidelines, he said, officials could bolster economic expansion and keep consumer price gains within target.

Hatta Optimistic Q3 Economic Growth to Exceed Six Pct
Economic Affairs Coordinating Minister Hatta Radjasa said he was optimistic economic growth in the third quarter of 2010 would exceed six percent after it had reached 6.2 percent in the second quarter. "As for economic growth in the third quarter , I think, it can reach more than six percent as in the second quarter it was already about 6.2 percent," Hatta said at his office here Monday.

Friday, September 3, 2010
Indonesian Wins US Short Movie Contest
An Indonesian filmmaker has won the second "Democracy Video Challenge" competition held by the US State Department, and hopes his work can promote Indonesian democracy to the world. "I hope with this movie, the rest of the world acknowledges Indonesian democracy. Democracy is not just a noun but a process, and there's something amiss in Indonesia's democratic processes," Adhyatmika, or Mika, told a press conference at the US Embassy in Jakarta on Friday.

Indonesia's Forex Reserves Reach US$81.3 Bln
Bank Indonesia Governor Darmin Nasution said the country's foreign exchange reserves were enough for six months of imports and paying government debts. He said here on Friday until August 31, 2010 the reserves reached US$81.3 billion. He said the inflow of foreign capital in the form of foreign capital investment rose quite high although it was still dominating the portfolio sector.

Indonesian Stocks Up After Global Rally, Rupiah Again Powers Ahead
The benchmark Indonesian stock index joined a global rally and posted a solid gain on Friday, after US reports showed an unexpected increase in pending home sales and improved retail sales. The Jakarta Composite Index rose 42.13 points, or 1.4 percent, to 3,164.28, closing at a record high. The index gained 1.9 percent for the week.

RI's Non-Oil/Non-Gas Exports to Reach $115 Bln This Year
The government has projected non-oil/non-gas exports to grow 16 percent at the end of 2010 to US$115 billion from US$87.5 billion the year before, Trade Minister Mari Elka Pangestu said. "We use a pessimistic scenario. The year-end growth is projected to reach 16 percent. We have arrived at the figure based on the pattern of monthly non-oil/non-gas exports in 2008 by considering weakening demand in destination countries," she said here on Friday.

RI Saves Rp 21 Trillion From Conversion Program
Indonesia has saved Rp21.38 trillion in fuel subsidies since the kerosene-to-gas conversion program was launched in 2007, state oil and gas company Pertamina said. "The gross amount of subsidies saved from the conversion program was Rp32.07 trillion. But after it was reduced by the first phase of conversion packages totaling Rp10.69 trillion it declined to Rp21.38 trillion," Pertamina President Director Karen Agustiawan said on Friday.

Industrial Growth Set at 6.1 Pct
The government has set an industrial growth target of 6.1 percent this year, Industry Minister MS Hidayat said. "A growth of 6.1 percent is realistic enough if it is supported by infrastructures," the minister said here on Thursday. Therefore, the Industry Ministry needs some Rp5 to Rp6 trillion to carry out its revitalization programs and to boost industrial growth.

President Touches in Idea to Move National Capital
President Susilo Bambang Yudhoyono here Friday commented on the idea of moving the national capital from Jakarta to overcome various problems including traffic congestion in the city. "(We will) build a completely new capital, which would be the real capital, the real government center," he said at a fast breaking gathering with leaders and members of the Indonesian Chamber of Commerce and Industry (Kadin) at the Jakarta Convention Center.

Thursday, September 2, 2010
Government Optimistic to Keep 2010 Inflation Within Target Range
The government has reiterated its optimism that it will be able to keep this year`s inflation rate within its target range. "We are still optimistic that the inflation rate target of 5, plus and minus 1, percent for this year will be achieved," Coordinating Minister for Economic Affairs Hatta Rajasa said here on Thursday.

Rupiah Gains Against US Dollar on Active Buying Activity
The rupiah strengthened against the US dollar in the Jakarta interbank spot market here Thursday morning on active buying activity. The Indonesian currency traded Rp8,990-Rp9,008 per US dollar, up 32 points from Rp9,030-Rp9,040 per US dollar at the market`s close a day earlier. The local unit was bolstered by the unexpectedly sound August 2010 inflation rate, according to Edwin Sinaga Finan Corpindo Nusa.

Government Targets One Million Barrels of Oil in 2014
The government has targeted an oil lifting of over one million barrels per day (bopd) in 2014, a senior official said. "The government is doing its best to produce over one million barrels of oil per day," Director General for Oil and Gas of the Ministry of Mines and Energy (ESDM), Evita Legowo told a House hearing here Thursday.

Indonesian Government Eyes Bonds to Help Fill Infrastructure Funding Gap
Infrastructure and green bonds were being considered to help come up with the billions of dollars needed to develop the ailing sector, a senior government adviser said on Thursday. The country needs $140 billion over the next five years in infrastructure development, ranging from paving roads and highways to providing more power and water supplies nationwide. As much as two-thirds of that amount would have to come from the private sector, said Edward Gustely, a government adviser.

House Speaker Praises President's Speech On RI-Malaysia Ties
Speaker of the House of Representatives (DPR) Marzuki Alie has said that the Wednesday evening (Sept. 1) speech of President Susilo Bambang Yudhoyono (SBY) on the Indonesian-Malaysian ties was appropriate. "Yes, President SBY`s speech was appropriate. The problem is his ministers, who are not synergistic, no coordination. His ministers talk as they wish, that`s what make the people blame him," Marzuki Alie said at the Parliament Building here Thursday. As the president, SBY was correct to be calm and soft, he said. "It should be like that. He should be calm and soft because there are around two million Indonesian workers there, our students, and there are also Malaysian students here," the House speaker said.

University Of Indonesia Builds World's Biggest Library
The University of Indonesia (UI) is building a new library which will be the biggest library in the world and is scheduled to become operational early next year, UI`s spokesman Vishnu Juwono said here Thursday. "The library is now already 80 percent completed," he said. The library located near the UI rector`s office, covers 33,000 square meters, Vishnu noted.

Wednesday, September 1, 2010
Ambassador Dino Goes to Washington
For the past six years, the entire nation has closely scrutinized Dino Patti Djalal's every word. This is no surprise since he has been the spokesman of President Susilo Bambang Yudhoyono since 2004. "Every time I say something, I think about it all day and all night, 'Did I say something wrong?'" Dino said, looking back on his tenure. "I think about my words too much."

Jakarta Composite Index, Rupiah Surge as Inflation, Economic Data Please Investors
The Jakarta Composite Index posted its biggest gain in four weeks on Wednesday after the August inflation rate came in below expectations, leaving the central bank time to hold its benchmark interest rate steady to promote economic growth. Better-than-expected economic data from China and Australia also contributed to the positive sentiment.

Indonesia's Exports in July Up 1.32 Percent
Indonesia's exports in July 2010 reached US$ 12.49 billion or up 1.32 percent from that in June 2010, according to data from the Central Bureau of Statistics (BPS). The July 2010 exports were up 29 percent from that in July last year, according to BPS Deputy Head Subagio Dwijosumono, here Wednesday. The July export hike was bolstered by increase in non-oil/gas exports, from US$10.42 billion in June 2010 to US$10.61 billion in July 2010, or up by 1.76 percent.

Rupiah Strengthens Against US Dollar
The rupiah slightly strengthened against the US dollar in the Jakarta interbank spot market here Wednesday morning. The Indonesian currency traded Rp9,023-Rp9,033 per US dollar, up seven points from Rp9,030-Rp9,040 per US dollar at the market`s close a day earlier. Kostaman Thayib, retail banking director of PT Bank Mega Tbk, said the stock market was sluggish as investors were still waiting for the latest developments of the global economy.

Yudhoyono Calls for Improvement in Law Enforcement Efforts
President Susilo Bambang Yudhoyono has called for improvement in law enforcement efforts to fulfill the community`s sense of justice and security. "All legal cases must be dealt with thoroughly so that we could move to make more effective law enforcement efforts," he said at a limited cabinet meeting on political, security and legal affairs here on Tuesday.

US Government Offers Assistance to Victims of Volcano Eruption
The United States has offered $50,000 in assistance to victims of a volcano eruption in Sumatra. The aid will be in the form of non-food aid donated through the Indonesian Red Cross, the US embassy said on its official website. U.S. Consul General in Jakarta Stanley Harsha expressed concern for the several thousand people who have been evacuated due to the eruption of Mount Sinabung, North Sumatra on Saturday.

FM Opens Access to International Treaty Documents
The Ministry of Foreign Affairs launched Tuesday a website which is expected to provide documents of all international treaties Indonesia has signed. By accessing the website, http://naskahperjanjian.deplu.go.id/, people no longer need to visit the ministry's office to see the original copy of an international treaty, Arif Havas Oegroseno, the ministry's director general for International Treaties and Legal Affairs, told reporters.

RI Has At Least 53,000 Tons of Uranium Reserves
ndonesia has an uranium reserve of at least 53,000 tons which could be used as basic material for building nuclear power plants (PLTN), including 29,000 tons in West Kalimantan and 24,000 tons in Bangka Belitung. "Besides, Papua may also have a very large uranium reserve. But it still needs some research," Deputy for Development of Cycle Technology of Nuclear Substance and Engineering of the National Nuclear Energy Agency (Batan) Dr Djarot S Wisnubroto said here on Tuesday night.

New Report Says Indonesia Internet Use Booming
Brazil, Russia, India, China and Indonesia will double their Internet users to 1.2 billion by 2015, fueling growth at media companies and phone carriers, according to Boston Consulting Group Inc. The countries will have three times the Internet users of the United States and Japan combined by then, up from about two times at the end of 2009, the consulting firm said in a report to be released on Sept. 1. While mobile phones with Internet access will aid growth, personal computers will double in the five countries to more than 920 million, according to the report.