Tuesday, February 22, 2011
Government to Accelerate Infrastructure Development
The government will accelerate the realization of infrastructure projects worth US$90 billion as part of its efforts to integrate the country`s six economic growth corridors, to offset inflation and boost finished goods exports. In essence, the government wishes to accelerate and expand economic development in which all sectors and development focuses are integrated regionally. In the future, exports will be carried out in the form of finished goods. "We do not want to only export raw materials. Each region must have a prime product. Therefore infrastructure and manufacturing development will be done based upon regional potentials," Chief Economic Minister Hatta Rajasa said on Monday.

President, US Parliament Discuss Democracy in Egypt
President Susilo Bambang Yudhoyono and the United States Parliament discussed the democracy in Egypt here on Wednesday. In a one-hour meeting with a delegation of US Parliament led by David Drier at the presidential office, both sides discussed a possibility of Indonesia to play its important role for the future of Egyptian democracy. Presidential spokesman for foreign affairs Teuku Faizasyah said the US Parliament at the meeting with President Yudhoyono also asked about Ahmadiyah case. Thus to the delegation of US Parliament, Teuku said the Indonesian government was trying to find a win-win solution with Ahmadiyah and to apply an unequivocal legal process to anyone engaged in violent acts.

Government Thinking of Setting Up Six Economic Corridors
Indonesia plans to set up six corridors to accelerate development and economic expansion across the country, vice governor of South Sulawesi, Agus Arifin Nu`mang, said here on Wednesday. This is one of the topics discussed at the government`s recent meeting in Bogor, West Java, attended by heads of regions from across the country, he said. "There is a new paradigm. For accelerating development and economic expansion the government will divide the country into six corridors namely Sumatra, Java, Kalimantan, Sulawesi, Papua and Bali-Nusa Tenggara," he said when explaining the results of the meeting that he also attended.

Mining Shares Help JCI Dig Out From Its Losing Streak
A stronger rupiah and heavy interest in coal and other mining stocks on Wednesday helped the Jakarta Composite Index end a two-day losing streak. The JCI gained 23 points, or 0.7 percent, to close at 3,474.12. About 3.1 billion shares worth Rp 4.1 trillion ($463 million) changed hands, with gainers beating decliners 121 to 61. "A strengthening currency indicates strong economic fundamentals that lead investors to keep their eyes on our market," said Alfiansyah, an analyst at Sinar Mas Sekuritas. "Investors are awaiting earnings reports from some mining companies that are expected to be released this week. They are estimated to post better growth than in 2009."

President Suggests Construction of Millions Cheapest Houses
President Susilo Bambang Yudhoyono has suggested the construction of million of very cheapest houses for the poorest and poor people in the country. "We can build several million homes with the very cheapest prices within one year and will continue to do so," the president said in his closing address of government working meeting at Bogor Palace on Tuesday. The head of state proposed that the prices of the cheapest houses would range from Rp5 million to Rp10 million per unit, because they were classified into temporary residence before the owners moved to a more permanent home. President Yudhoyono`s suggestion would be a guideline which is to be discussed in the cabinet meetings.

RI to Send Observers to Disputed Thai-Cambodia Border Area
Indonesia will soon send observers to both sides of the disputed part of the Cambodian-Thai border near the 11th century Preah Vihear temple, Foreign Affairs Minister Marty Natalegawa said. The decision to send observers was made based on an invitation from both Cambodia and Thailand for the presence of observers from Indonesia in its capacity as the current ASEAN chair. "We will send the team within the few days or weeks. Their job will be to assist and support both Cambodia and Thailand in respecting their commitment to avoid further armed clashes in the border area. We will observe and make reports about the latest situation there including if there is any violation of the ceasefire commitment," said the minister here on Tuesday at a press conference after meeting with his ASEAN counterparts. Marty said the observer team would then submit the report to both Cambodia and Thailand as well as to Indonesia as chair of ASEAN to be reviewed.

Korea Seals Deal to Purchase 20 LNG Cargoes
Indonesia, the world's third-largest exporter of liquefied natural gas, will ship 20 cargoes of the fuel to Korea Gas Corp. through 2012, the country's energy regulator said. The exports will continue despite the country operating with a domestic gas deficit. "We will also sell six cargoes from the Bontang plant to the spot market," R. Priyono, head of upstream oil and gas regulator BPMigas, said on Wednesday. "Sales to Kogas and the spot market are from excess capacity from the Bontang plant." One cargo of LNG equates to between 125 million tons and 175 million tons. Indonesia exports the fuel to Japan, South Korea, Taiwan and China under term contracts. Plants operated by state oil and gas company Pertamina in Bontang, East Kalimantan, and Arun, Aceh, produced more than 95 percent of the country’s LNG in 2009, according to Bloomberg data.

Indonesia and the EU: A Relationship in 3D
I am strongly conscious of the deepening ties between Indonesia and the European Union (EU) and the noble values that underpin them. The multi-dimensional nature of our relationship can be captured in 3 "D's": democracy, diversity and development. First, democracy. Indonesia emerged from a long period of autocratic rule to form the world's largest Muslim-majority democracy. That democracy now has three successful parliamentary elections under its belt and is a beacon of stability in a socio-politically dynamic region of the world. EU citizens draw pride from the transformation that has occurred on our own continent in the past 20 years, with countries that lived for decades under dictatorship now thriving as free and prosperous members of the EU. The European Parliament has long been an advocate for human rights and democratic values and I am keen to explore with our Indonesian counterparts how to advance those values across the world.

Tuesday, February 22, 2011
With Improved Infrastructure, Economy can Grow 7.6 Percent
Indonesian economy could grow up to 7.6 percent from 2011-2014 if the government increases its spending for transportation infrastructure by 20 percent each a year. Another requirement is that private sector participation should be increased to 50 percent. "This is a logical scenario," said Standard Chartered Bank Economist, Eric Alexander Sugandi, during a discussion on Indonesia's Infrastructure Problem yesterday. The National Development Planning Agency (Bappenas) said that Indonesia needs Rp 1.429 trillion to develop its infrastructure from 2010 to 2014. Most of the funds would be allocated to build and repair harbors, airports and electricity provision. But the government can only provide Rp 386 trillion (27 percent) of the needed funds. The rest is expected to come from the private sector. In 2011, the government only allocated Rp 126 trillion to build infrastructure or 10 percent of the government capital spending.

Indonesia And Obama's Personal Path To Democracy
As democracy protests spread across Egypt, Bahrain and other Middle Eastern and African countries, the White House is studying historical parallels. One of those parallels has personal significance to President Obama. In 1967, shortly after a violent crackdown on student protesters in Jakarta, a young woman named Ann Dunham moved to Indonesia with her 6-year-old son. "Innuendo, half-whispered asides, that's how my mother found out that we had arrived in Jakarta less than a year after one of the most brutal and swift campaigns of suppression in modern times," Obama later wrote in his memoir, Dreams From My Father. "Word was that the CIA had played a part in the coup, although nobody knew for sure. More certain was the fact that after the coup, the military had swept the countryside for supposed communist sympathizers," he wrote. "The death toll was anybody's guess. A few hundred thousand maybe, half a million, even the smart guys at the agency had lost count."

Indonesia 'Solid Pick' To Be the Next BRIC
Dismissing the findings of a global conference that Turkey would be the next to join the rising economic powers of Brazil, Russia, India and China, analysts said Indonesia had far more potential given its resources and population but needed reforms to stay in the running. According to a vote of about 100 investors at a conference in London hosted by Royal Bank of Scotland, Turkey at 35 percent would be the next to join the BRIC gang, followed by Indonesia (23 percent) and Mexico (16 percent). The poll results were forwarded to Bloomberg on Monday night. Some of Turkey's backers cited its "strong growth and its geo-strategic importance at the crossroads of Europe and Asia." Others said the nation could replace Russia, which was called a "one-trick pony" that had little to offer except its oil and mineral wealth. Fauzi Ichsan, a senior economist at Standard Chartered, said Indonesia was a far better fit than Turkey. "Where else do global investors put their money in Asia after China and India? Indonesia has a domestic market power of [237 million]. It is a net commodity exporter," he said.

SOEs Prepare Rp838 Trillion to Accelerate Development
As many as 66 state-owned enterprises (SOEs) will be allocated Rp 838 trillion to accelerate economic development. The funds, said Coordinating Economic Minister Hatta Rajasa, would be distributed to six economic corridors according to different areas of business, such as ports, airports, railways and toll roads. The government also plans to net funds from local and foreign investors. The fund target for local companies is the same, namely US$ 90 billion. From foreign investors, Hatta claimed the government had already secured US$ 100 billion, from among others, Japan, South Korea and India. At the beginning of the meeting President Susilo Bambang Yudhoyono reiterated that concrete plans must be made, complete with budgetary requirements, implementation schedule, manpower numbers and a clear share of duties between the central and provincial governments.

Cambodia, Thailand Accept RI as Observer
Cambodia and Thailand have agreed to invite Indonesia as an observer in their efforts to find a peaceful settlement following a military clash between the two countries on February 4-7, Foreign Minister Marty Natalegawa said. "In the ASEAN informal foreign ministerial meeting today it was agreed that Cambodia and Thailand should settle their problem peacefully and to invite Indonesia as an observer and engage it in talks later," the Indonesian foreign minister said here on Tuesday. As an observer Marty said Indonesia would not take over their responsibility in assuring a cease-fire but would support it and would accurately report its findings in the field. "Indonesia is not a peace enforcement body that enforces peace but an observer that makes a report about what happens and present it to the ASEAN chair and the two parties," he said. When the observers to be sent and how many the would be has not yet been determined but he said it had better be done immediately.

Papua's Natural Resources Conservation Center to Rehabilitate 1,500 Hectares of Lorentz
The Papua Province Center for Conservation of Natural Resources will rehabilitate about 1,500 hectares of arid land in the Lorentz National Park in Timika, Papua, a local official said here, Tuesday. "There is land degradation in the area of Lorentz National Park which is quite alarming because of human negligence. So we will immediately rehabilitate," Head of Papua Province Center for Conservation of Natural Resources, Ignn Suteja said. According to him, the office is still considering the possibility of a violation of the rule of law if the rehabilitation carried out in the conservation area, because the area should not be altered or disturbed based on the regional regulation. "But we could do the rehabilitation if the plant species is the same as those that already existed. So it will not destroy the habitat and the origin of the plants," Ignn Suteja explained. Regarding the factors causing land degradation in Lorentz National Park, Ignn Suteja said it is more because of human negligence, such as land clearing and waste dumped carelessly by the climbers.

Indonesia Leads The World Into The Future
Tackling climate change can at times seem to be at odds with ensuring economic growth and alleviating poverty. I believe, however, that the only way to truly succeed with either of these goals is by striving to reach them all. Climate change, poverty, population growth, and food, water and energy insecurity are mutually reinforcing. None of these challenges can be solved in isolation. While economic development is key for achieving social and environmental goals, long-term economic growth and lasting competitiveness can only be secured through environmentally sustainable and climate friendly development policies. Norway, like all other countries, must strive to transform into a low-emission society, and must take the lead in domestic emissions reductions. As a developed country, we carry particular responsibilities in this regard.

US Universities Hold US Education Fair in Jakarta, Medan, Semarang, Surabaya
U.S. Ambassador Scot Marciel, here, Sunday (Feb. 20) spoke at the Spring 2011 EducationUSA Fair, held in partnership with 38 prominent U.S. educational institutions. The EducationUSA Fair, which was open to the public, included university representatives and presentations on "Study in the USA" and the student visa application process, a press statement of the US Embassy in Jakarta, said here, Tuesday. The EducationUSA Fair started on Sunday, February 20 in Jakarta, followed by events in Medan on February 22, Semarang on February 24, and Surabaya on February 26 before concluding in Denpasar on February 28. Attendees will be able to meet university representatives and follow activities through EducationUSA`s website and social media channels, including Facebook, Skype, and Twitter. The EducationUSA Fair is an annual advising activity coordinated by AMINEF/EducationUSA that provides accurate and impartial information on studying in the United States by facilitating direct interaction between students and university representatives.

Manpower Ministry Plans to Place 2.47 Million Workers
The Ministry of Manpower said it was planning to place at work about 2.47 million domestic workers in 2011. "We are optimistic that the worker placement target of 2.47 million people in 2011 would be achieved as long as the economic growth could be maintained," Manpower Minister Muhaimin Iskandar said here Monday. The economic growth at present is estimated at 6.1 percent and the ministry of manpower hoped that the growth would continue to increase so that more job opportunities would be made available. The projected domestic worker placement will prioritize five sectors based on the results of a study of the National Manpower Plan for 2011 - 2012. "Five sectors will be prioritized, namely agriculture, industry, construction, trade and services," the minister said.

Indonesia to Strive to Reduce Exports of Raw Materials
Indonesia plans to reduce exports of raw materials through efforts to process the materials at home to increase the value of its exports. Chief economic minister Hatta Rajasa made the statement at a press conference held on the sidelines of the government`s working meeting here on Monday on acceleration of Indonesian economic development opened by President Susilo Bambang Yudhoyono. "In essence we wish to accelerate and expand economic development in which all sectors and 18 main focuses are integrated regionally. In the future we do not wish to only export raw materials and for that each region must have prime products and therefore infrastructure and manufacturing development will be done based upon regional potentials," he said. This was one of the issues discussed at the meeting that would last until Tuesday, he said. He said the government plans to develop six economic growth corridors namely the Sumatra, Kalimantan, Java, Bali, Nusa Tenggara, Sulawesi, North Maluki, Papua and Maluku corridors.

RI to Expand Tourism Market to Asean Countries
The government is committed to expanding Indonesia`s tourism market in Asean countries such as Thailand, Vietnam, and the Philippines. "This year we will start to expand our tourism market to Thailand, Vietnam, and the Philippines," deputy director for Asean region at the culture and tourism ministry Chrismiastutie said here on Tuesday. According to her, the three Asean countries were considered potential for Indonesian tourism market in Asean after Singapore and Malaysia. Especially for the Philippines, she expressed optimism that the number of tourists from the country to visit Indonesia would increase by 210,000 this year. "We have made tourism promotion for several time last year in the Philippines so we are optimistic that around 210,000 tourists from the country will visit Indonesia this year," she said.

No Theft On State Data: Hatta
Coordinating minister for economic affairs Hatta Rajasa said that no data had been lost during the visit of the president`s special envoy to South Korea on February 15 to 17. He made the statement at a press conference held on the sidelines of the government`s working meeting here on Monday responding to media reports about the loss of Indonesian military data at a hotel in South Korea when the country`s envoy was visiting that country recently. "The visit was done in the framework of an economic cooperation. There was no report about a loss and a laptop that was gone containing military data. The defense ministry had also denied it and we had kept communicating with the Indonesian ambassador in South Korea," Hatta said. Hatta who led the delegation said what had actually happened was that the head of the sub-directorate of electronics and telecommunication and information of the ministry of industry, Rojih Al Mansyur, discovered three unknown people entering Room 2061 where he stayed and took a laptop without his permit.

Friday, February 18, 2011
The Embassy of Indonesia's Response to a CNN report (February 15, 2011) entitled, "Gay Man Seeking Asylum: I Can't Return to Indonesia"
The Embassy of the Republic of Indonesia expresses its strongest objection to a CNN report (February 15, 2011) entitled, "Gay Man Seeking Asylum: I Can't Return to Indonesia," which tells the story of Anton Tanumihardja, an openly gay Indonesian man whose application for "political asylum" -- on the basis that he feared he would be persecuted in Indonesia due to his sexual orientation -- was turned down by U.S. Immigration. The Embassy assures that no one in Government or law enforcement in Indonesia is looking for Mr. Tanumihardja. His sexual orientation is absolutely not an issue in Indonesian society. In Indonesia, gay people live openly and our society accepts them with great tolerance. As for your information; we have gay actors, many gays work in the fashion industry and gay personalities are very visible in the entertainment industry as presenters and television icons. Indeed, gay people -- both open and closed -- can be found throughout the society and workplace, living normal lives.

First Quarter Growth May Reach 6.4-6.6 Pct, Minister Says
Finance Minister Agus Martowardojo estimated that economic growth in the first quarter of 2011 will reach 6.4 to 6.6 pct. "The 2011 growth target may reach 6.4 pct, but in the first quarter may reach up to 6.6 pct," he said here on Wednesday night. He said the growth still has the support of the transportation and communication sectors and the GDP still dominated by household consumption, gross fixed capital formation and exports. "Still in the transportation and communication sectors, household consumption was still high, and so are investment and exports," the finance minister said. He said the estimates are actually already favorable, especially that the 2011 growth target reached 6.4 pct, while the 2010 growth target reached 6.1 pct.

RI to Set Up Corruption Courts in 33 Provinces
Indonesia plans to set up corruption courts in 33 provinces in the country by the end of 2011, Supreme Court Chairman Harifin A Tumpa said. He said here on Wednesday evening each court would have six judges to specially handle corruption cases, namely two for the higher court and the rest for the district court. He said technically implementation of court sessions and secretarial affairs would be embedded in a district court based in receptive provincial capitals. "That way I am optimistic by the end of the year the plan would be fully realized in all 33 provinces in Indonesia," he said. Harifin admitted with the current limited budget the establishment of the courts would be one of the programs to be prioritized that must be immediately realized.

Culturalist: Inter-Faith Relations in RI Generally Still Good
A noted culturalist said relations between followers of different religions in Indonesia were in general still well maintained. "Followers of different religions in Indonesia still live in peace," culturalist Franz Magnis Suseno said in a lecture on the latest cultural issues in Indonesia at the Faculty of Culture of the University of Indonesia here on Thursday. The harmonious relations among people of different faiths in the country had not only been marked by religious activities but also artistic and cultural activities that could deepen inter-faith relations. He said in several regions such as in Sumatra, Kalimantan and other islands, adherents of different faiths remained very tolerant and respectful toward each other, far from what people had witnessed in several places in Java recenlty. So, he said, people may not say that the state had failed just because of a few violent incidents in some places recently. With regard to the incidents, Magnis called on the government to take firm action against them. "If vandalism or crimes have been committed, the law must be enforced," he said.

JCI Extends Rally as Lenders Post Positive 2010 Numbers
The Jakarta Composite Index's rally rolled into a fifth day as a slew of strong results from local lenders lifted finance shares. Friday's gain saw the benchmark index close the week up 3.2 percent. Indonesian stocks are down 5.5 percent on the year, with the market down 9 percent at one point, as inflation fears drove investors back to developed market assets. "Foreign investors bought such big listed companies as Astra International and Bank Mandiri, which led the gains on the JCI," said Praska Putrantyo, an analyst at Infovesta Utama. "Gains in Asian markets also helped the JCI to advance today." The JCI was up 67.12 points, or 1.95 percent, to close at 3,501.50. Trading volume was 3.9 billion shares valued at Rp 6.3 trillion ($711.9 million). Gainers outstripped decliners 157 to 56.

Indonesian Rupiah Gains for Fifth Straight Week on Fund Inflows
Indonesia's rupiah gained for a fifth straight week, its longest winning streak since October 2009, after overseas investors pumped funds into the nation's stocks to take advantage of the growth outlook. Bonds rose. The currency on Friday reached a 3 1/2-year high after global funds bought $212 million more Indonesian equities than they sold this week through yesterday, according to exchange data. Gross domestic product may expand 6.5 percent in the first quarter from a year earlier, Bambang Permadi Brodjonegoro, head of fiscal policy at the finance ministry, said in Jakarta on Thursday. Consumer prices in January rose at the fastest pace since April 2009. "We saw flows into the equity market, helping sentiment," said Bambang Eko Joewono, head of the global-markets division at Bank UOB Buana in Jakarta. "By letting the rupiah appreciate Bank Indonesia is trying to combat inflation, which is a big problem."

Ubud Festival Welcomes World Musicians
For the first BIFest in the new decade of the 21st century, the musicians will come from Canada (Reg Schwager, known as the best Canadian jazz guitarist), Africa (Supa Kalulu, marimba dance band led by Jan Maraire, wife of the late master Maraire), Italy (Anello Capuano, acclaimed as the most prominent world music multi-instrumentalist), Japan (Chika Asamoto, a superb female soprano sax player), Jakarta (Dwiki Dharmawan, Indonesian music ambassador) and, of course, Bali itself (Bona Alit, the young master of Balinese music). Entering the new millennium, the world has shown the emergence of new musical impulses from across the globe. Due to European colonialism, for the past several hundred of years, Western music has dominated the global arena and market. By the same token, it has also been narrowmindedly considered as superior compared to non-western music. But the fact is that many people have forgotten that behind Western music culture lays a strong influence of Asian and African music.

News Focus: SOEs' Role in Economic Development Increasing
State-owned enterprises (SOEs), as one of the country's economic pillars beside private companies and cooperatives, are playing an increasingly significant role in national economic development through their upward performance and financial contributions to the state. The increasing role of state-owned companies is reflected in their performance which has been improving steadily, as well in their financial contributions to the state which in 2010 stood at Rp132.6 trillion (in the form of dividends, taxes and privatization). Besides, state-owned firms in 2010 also made indirect contributions to national development in the form of capital expenditure worth Rp197 trillion and operational expenditure valued at Rp932 trillion. Therefore, to increase their contribution to national development, their capital expenditure would be further pushed up. The government through the Ministry of State Enterprises (BUMN) is ready to push state firm to increase their capital expenditure to the level of Rp380 trillion in the next four years. Coordinating Minister for Economic Affairs Hatta Rajasa said the BUMNs` capital expenditure in 2011 would reach Rp380 trillion which would go to business expansion to meet the needs for an economic corridor development program.

US Bizmen Appreciate RI's Improved Investment Climate
United States businessmen appreciate the improved investment climate and the removal of many investment barriers in Indonesia. The appreciation was expressed by members of a US-ASEAN Economic Cooperation Council delegation at a meeting with President Susilo Bambang Yudhoyono at his office here on Friday. "They appreciated Indonesia`s progress in investment services and the elimination of investment barriers," Coordinating Minister for Economic Affairs Hatta Radjasa said after accompanying President Yudhoyono at a meeting with the US-ASEAN delegation. Hatta said they also expressed a commitment to increasing their investment in Indonesia. "This is a follow-up to last year`s visit by US President Barack Obama who said at the time that his country wanted to be the largest investor in Indonesia and ASEAN," he said.

Indonesia Wishes Inalum to Become World Player
The Indonesian government wishes to see PT Indonesia Asahan Aluminium (Inalum) become one of the world`s biggest aluminum producers. "We wish that Inalum could become a world-class company, to be one the fifth or tenth biggest company in the world," the director of international industrial cooperation of the ministry of industry, Agus Tjahajana, said after a first formal meeting with the Japanese side on the future of aluminium smelter here on Friday. He said right now the world`s aluminum production was recorded at around 40 million tons a year and China has been one of the big producers with its production reaching around 15 million tons a year. "So it is indeed still far away for us to be able to reach that level. We are aware in order to reach that level there must be an increase (of production). How it will be done is still being discussed now," he said. Until now the Indonesian government and the Japanese side are still conducting talks on the continuation of the Inalum project whose contract would expire in 2013.

Foreign Ministry Yet Planning to Evacuate Indonesians From Libya, Bahrain
Spokesman for the Foreign Affairs Ministry Kusuma Habir on Friday said the government is not yet planning to evacuate Indonesians living in Libya and Bahrain in view of the rising tension in the two countries. "We are still evaluating the situation there. However, we will soon conduct an evacuation if things are getting worse there," she said. At least 12 people were killed on Thursday (Feb 17) and dozens injured in anti-government protests in Libya`s northeastern city of Al-Baida and eastern city of Benghazi. Inspired by popular uprisings in Egypt and Tunisia, Libyan protesters also called for a "Day of Rage" on Thursday in a bid to challenge the 41-year rule of Colonel Muammar Qadhafi, who has been accused of human rights abuses.

Thursday, February 17, 2011
Government Sets Investment Target For 2011 at Rp 240 Trillion
The Investment Coordinating Board (BKPM) has set a target of investment for 2011 at Rp240 trillion compared to Rp208 trillion last year. The 2011 investment target represented a significant increase compared to 2009 when investment reached Rp135 trillion, BKPM Regional Director II Yuliot said here on Wednesday. He expressed optimism that the 2011 investment target could be achieved due among others to the government`s policy to provide investors with tax holiday facilities under Government Regulation No. 94 of 2010. In addition, the plan to improve infrastructures all over the country and to step up one-stop services were expected to boost investment this year, he said.

Rupiah Gains on Speculation Borrowing Costs Are Headed Higher
Indonesia's rupiah advanced to its strongest level since 2007 on speculation the central bank will boost its policy rate further to damp inflation. Bank Indonesia raised its reference rate by 25 basis points to 6.75 percent on Feb. 4, the first increase in more than two years, after consumer prices rose the most in 21 months in January. The rupiah has strengthened 1.1 percent this year, the best performance among Asia's 10 most-traded currencies. "Bank Indonesia is giving strong signals to the market that it wants to help combat inflation, and one way of doing that is by increasing the interest rate," said Eric Alexander Sugandi, a Jakarta-based economist at Standard Chartered Plc. "It is also allowing the rupiah to appreciate to control imported inflation." The rupiah gained 0.1 percent to 8,883 per dollar as of 8:54 a.m. in Jakarta, according to data compiled by Bloomberg. The currency reached 8,873 earlier, the strongest level since June 2007.

RI Expected to Start Producing CBM in Q2 2011
The Indonesian government expects energy sector to be able to start producing coal bed methane (CBM) by the second quarter of 2011, an official said. According to the upstream oil and gas regulator (BP Migas) spokesperson Budi Indianto said in a press release received here Wednesday that these CBM would be produced from the West Sangatta I at East Kalimantan operating area which will be operated by the West Sangatta CBM Ltd. "The initial CBM production will reach to one million metric standard cubic feet per day (MMSCFD) and to be used for the 2.5 MW capacity power generators," he said. West Sangatta has completed three oil wells drilling In 2010 and by the end of January 2011 the operator company will run another four wells. Since the CBM was developed in 2008, there are five contractor and the area owner cooperation contracts were targeted in 2011 to begin producing the gas.

US Hopes Indonesia to Create Integrated Market
US businessmen grouped in the US-ASEAN Business Council hope Indonesia as current chair of ASEAN could create an integrated market in the region. "US companies are hoping for an integrated market in Southeast Asia that would make them easy to expand their businesses in the region`s free market," the president of the US-ASEAN Business Council, Alexander C Filedman, said to newsmen at the vice presidential palace here on Wednesday. He made the statement after together with 73 businessmen of the Council meeting with Vice President Boediono. He said the businessmen also hoped Indonesia could become the center of halal certification for the ASEAN market as part of the region`s free market integration plan. Indonesia as the world`s largest Muslim country is expected to become the reference with regard to halal certification, he said.

Government Discusses Follow-Up to Post-Tsunami Reconstruction in Mentawai
Coordinating Minister for People`s Welfare Agung Laksono held a coordination meeting here on Wednesday to discuss a follow-up to post-tsunami reconstruction efforts in Mentawai islands off the western coast of Sumatra island. "The meeting is aimed at coordinating and evaluating the construction of temporary shelters in Mentawai islands," he said. Also present at the meeting were Health Minister Endang Rahayu Sedyaningsih, Public Works Minister Djoko Kirmanto, Social Service Minister Salim Segaf Al Jufri, Head of the National Natural Disaster Mitigation Board (BNPB) Syamsul Maarif, Secretary of the Coordinating Minister for People`s Welfare Indroyono Soesilo, and Mentawai Island district head Edison Saleleubaja. Quoting data from the West Sumatra provincial natural disaster mitigation office, Agung said the number of affected families who want to be relocated to safer areas reached 1,631. "The families are those whose houses were damaged by an earthquake and subsequent tsunami in Mentawai," he said.

BPS: Poverty Rate Has Really Dropped
The Central Bureau of Statistics (BPS) said the poverty rate in Indonesia has continued to decline since 2006, although the number of nearly-poor people has remained high. "If calculated with reference to the poverty line - the food poverty and non-food poverty lines - the number of poor people has decreased from 39.3 million to 31.02 million since 2006," Kecuk Suhariyanto, director of BPS`s Statistical Analytical and Development division, said at a seminar organized by ANTARA here Thursday. He gave the figures to counter a statement by several prominent religious figures who had recently accused the government of having lied for saying that the number of the poor in 2010 was 31,02 million, while the number of poor people receiving government-subsidized rice was 70 million.

News Focus: Japan Trying to Keep RI Out of China's Growing Influence
Japan is trying to keep its long-time friend Indonesia free of China`s growing economic influence as Tokyo is convinced that Jakarta is a strategic economic co-player. "The visit by a Keidanren delegation to Indonesia earlier this week is an alternative step taken by Japan to face China`s growing influence here," said Sofyan Wanandi, chair of the Indonesian Businessmen`s Association (Apindo), on Wednesday. Wanandi said Keidanren is very influential in the Japanese economic system due to the fact that it is a solid grouping of the country`s industries. Thus, whenever Keidanren sends a big delegation to any country personally led by its chairman, those in the know would understand the significance of the visit.

Kimia Farma's 12% Surge Helps JCI to 4th Day of Gains
Positive news from around Asia and the United States helped the Jakarta Composite Index rise for a fourth successive day on Thursday, closing up 17.6 points, or 0.5 percent, at 3,434.38. "The local market received positive catalysts from the regional market today, while a strengthening rupiah also signaled that global funds are coming into the local market," said Frederik Daniel Tanggela, an analyst at Sucorinvest Central Gani. Frederik, who credited rising commodity prices and an improved producer price index announced by the US Department of Labor for the gains, said the JCI would continue rising next week. About 3.1 billion shares worth Rp 4.4 trillion ($497 million) changed hands, with gainers outnumbering decliners 114 to 86.

Wednesday, February 16, 2011
10 Islands to Explore Before You Die
We scoured the globe to find 10 islands that belong on your must list. Each of these places offers something that you can't find anywhere else, from the largest man-made archipelago to hot springs so therapeutic they've been popular since Roman times. If you're going to imagine yourself on an exotic island, dare to dream big! Here are 10 one-of-a-kind islands where you'll discover every item on your wish list, from overwater bungalows and pristine wildlife to sublime street food and mysterious cultural monuments. 1. Bali, Find your center on an island so spiritual it's become known as "Island of the Gods." The warm, spiritual essence that writer Elizabeth Gilbert discovered here and celebrated in Eat, Pray, Love has been native to Bali for centuries. It's one of 17,000 islands in the Indonesian archipelago-and the only one on which Hindus form the majority (93 percent). Even more striking is the fact that there is a spiritual celebration here nearly every day. Three Hindu temples at the Besakih (the Mother Temple of Bali) survived a 1963 eruption that destroyed nearby villages while missing by mere yards this terraced complex atop volcanic Mount Agung.

President Calls On Muslims to Solve Problems Peacefully
President Susilo Bambang Yudhoyono called on Muslims to solve any arising problem in a peaceful and dignified manner. In his address at a so-called Dzikir Akbar, a mass religious gathering for joint prayers to observe the Prophet Muhammad`s birthday at the south square of the National Monument here on Tuesday, the president called on Muslims to emulate the prophet who used to overcome problems peacefully. "The prophet set examples from which can conclude that to make great changes in the right direction and to solve problems, it should be done in a peaceful and dignified manner," the president said. President Yudhoyono pointed out that if all Muslims in Indonesia seriously followed the examples of Prophet Muhammad, the country would be blessed and all its struggles would succeed.

News Focus: Various Parties Declare Commitment to Peace in Indonesia
Too many people think of "Peace" as some sort of will-o`-the-wisp thing that can be discovered through a constant and relentless search. Acts of violence and the issue of peace in Indonesia are not just political and religious matters; they are moral and spiritual issues that have to be solved properly. Accordingly, many parties in various parts of the country in the last couple of days have called for and declared their commitment to peace, following violence triggered by religious issues recently. At the Bajra Sandi monument area in Denpasar, Bali, hundreds of Balinese women on Tuesday declared an "Indonesian Women`s Association for Global Peace (IWAG-Peace)." "The declaration of IWAG-Peace is intended to neutralize violent conflicts in the name of religion in various areas across the country," event coordinator Putu Sri Puji Astuti said in Denpasar on Tuesday.

G20 Meeting to Discuss Food, Oil Prices: Minister
Finance Minister Agus Martowardojo said the upcoming G-20 meeting in Paris, France, will discuss the upward trend in food and oil prices. "I think the meeting will discuss agenda relating to the upward trend of oil and food prices. It will become the main topic of discussion in the G20 meeting. This issue is also raised by France," he said when met here on Tuesday. This is one of the agenda that will be discussed between the G20 Finance Ministers and Central Bank Governors in Paris, France on 18 to 19 February 2011. He explained that the increase in world food and oil prices have been felt by many countries around the world, there are even countries that have experienced the worst food price increase over the last 60 years. "For the food prices, we have noted a very high increase. There are even countries which are experiencing the worst conditions in the past 30-60 years today. Of course it will be a topic that we will discuss," he said.

News Focus: Marine Resource-Rich Indonesia Sets Higher Fish Production, Consumption Targets
Indonesia as one of the world`s largest maritime countries has about 5.8 million square kilometers of marine territory and 92,000 kilometers of beach and coastal strips, second only after Canada. As around 70 percent of Indonesia`s territory consists of water, it is but logical if Marine Affairs and Fisheries Minister Fadel Muhammad has the ambition of making Indonesia one of the world`s biggest fish producers. For 2011, the ministry has set its fishery production target at 12.26 million tons, or an increase of 13 percent from 10.85 million tons in 2010. Indonesia`s fish production in 2009 was 9.82 million tons. Speaking in a discussion on "The Fishery Outlook 2011" held in Jakarta early February 2011, the minister said the government has set a target of fishery production at 22.39 million tons by 2014, while aquaculture 16.86 million tons. This year, the volume of aquaculture production is expected at 6,847,500 tons, the number of quality fingerlings is 4.2 billion, and seaweed seedlings 350,420 tons.

State Enterprises Capital Expenditures To Be Pushed to Rp 390 Trillion
State Enterprises Minister Mustafa Abubakar said he was ready to push state-owned companies (BUMNs) to increase their capital expenditure to the level of Rp380 trillion in the next four years. "Rp380 trillion is the consolidated amount and it is hoped it will come from 60 to 70 percent of BUMNs that are in good financial conditions," he said at his office here on Wednesday. He said in the 2011 corporate working budget plan (RKAP) the capital expenditure of all BUMNs was expected to reach Rp210 trillion, up from Rp196.91 trillion last year. Meanwhile, their operational expenditure was expected to reach Rp1,929.87 trillion, up from Rp932.15 trillion last year. Coordinating Minister for Economic Affairs Hatta Rajasa earlier said the BUMNs` capital expenditure in 2011 would reach Rp380 trillion which would go to business expansion to meet the needs for an economic corridor development program.

Rupiah Appreciates After Funds Boost Indonesian Stock Holdings
Indonesia's rupiah advanced for a second day after overseas investors boosted holdings of the nation's assets to benefit from growth in Southeast Asia's biggest economy. The currency has gained 1.7 percent this month as official data showed gross domestic product rose 6.9 percent in the fourth quarter, the most since 2004, and Bank Indonesia raised borrowing costs for the first time in more than two years on Feb. 4. Exchange data show global funds bought $231.7 million more local shares than they sold this month, and the government said on Feb. 11 that foreign holdings of the nation's debt rose 2 percent from the end of January to 199 trillion rupiah ($22.4 billion). "Foreign funds are coming in, they are expecting at least one of two more interest-rate hikes by Bank Indonesia in the first half of this year," said Mika Martumpal, a senior market analyst at PT Bank Commonwealth in Jakarta. "The earlier increase showed that Bank Indonesia is more focused on fighting inflation."

US NGO Defends RI Palm Oil Industry
An American non-governmental organization (NGO) has come out in defense of Indonesia`s palm oil industry, saying it contributes to the country`s and world`s economic growth and food security. World Growth, a pro-development NGO, in a report issued in New York on Tuesday, said efforts to restrict land conversion by environmental non-governmental organizations (NGO) and international institutions "risk undermining economic growth in Indonesia and global food security." The report assesses the palm oil industry, addresses the benefits and challenges facing the industry, and examines the role the industry has played in Indonesia`s economic growth and development. World Growth Chairman, and former Ambassador to and Chairman of the GATT (the predecessor to the World Trade Organization), Alan Oxley, said in a statement: "There has been a sustained effort to limit the ability of developing countries to expand agriculture. It is driven by the wrong headed belief that freezing production of palm oil and other commodities enhances sustainability. The call is for measures which restrict and control trade and production of vital food stuffs. These are advanced by NGOs, some Western governments, international agencies, and even multinational corporations. It will just stall food production and undermine strategies to reduce poverty."

Supporting MDGs, International Foundation Grants US$ 369 Million
Wismana Adisuryabrata, the National Development Planning Board's (Bappenas) funding deputy, said the United Nations Development Programme (UNDP), the United Nations Children's Fund (Unicef), and the United Nations Population Fund (UNFPA) had granted US$ 369 million to Indonesia to achieve its Millennium Development Goal (MDGs) target by 2015. The grant comprised US$ 185 million from the UNDP, US$ 29 million from the UNFPA, and US$ 155 million from Unicef. "This is all purely in the form of a grant," said Wisamana on Monday.

Quiet Day in Trading Indonesian Stocks, But Investor Appetite Expected to Return
The Jakarta Composite Index edged up slightly on Wednesday, adding 0.02 points to 3,416.79 after being closed on Tuesday for a national holiday. But Janson Nasrial, an analyst at Amcapital Indonesia, said investor confidence and market growth would soon pick up. "The JCI has suffered too much depreciation this year due to issues in the region and inflation. Now market valuations are getting more attractive to investors, especially foreign investors. The fourth-quarter GDP in 2010 increased 6.9 percent, which will increase their appetite to return to the Indonesian market," he said. About 2.3 billion shares worth Rp 4.1 trillion ($459 million) changed hands. Decliners outnumbered gainers 113 to 84. Ito Warsito, director of the Indonesia Stock Exchange (IDX), said losses on the JCI so far this year did not reflect the market's potential for the rest of 2011. The index has shed about 9 percent since January, but Ito said he was optimistic it would grow throughout the rest of the year.

Fund Managers Still Positive About Local Market's Promise
Top mutual fund managers remain upbeat about the industry's prospects despite Indonesian stocks making a rough start to 2011, saying they believe it will rebound soon. In the meantime, they suggest investors diversify their holdings with less-risky instruments, such as money-market funds, which provide stable returns amid expectations of further interest rate increases. Michael Tjoajadi, director at Schroders Investment Management Indonesia, told the Jakarta Globe recently that he believed the stock market still had plenty of room to grow this year. "The mutual fund industry's assets under management can still grow around 15 percent this year. I believe the index will regain its strength, especially after the announcement of companies' earnings. Equity-based mutual funds have always fluctuated following the trend of the index," he said.

Monday, February 14, 2011
Rupiah Gains as Egypt Crisis Eases, Indonesia Economy Expands
Indonesia's rupiah advanced for the first time in four days as concern Egypt's crisis would deepen eased and Indonesia's economic growth outlook boosted investor appetite for the nation's assets. Egyptian President Hosni Mubarak resigned on Feb. 11, after protesters occupied central Cairo for 18 days to demand an end to his 30-year rule. Indonesia's gross domestic product expanded 6.9 percent in the three months through December from a year earlier, the most since the quarter ended December 2004, the statistics bureau said on Feb. 7. "The worst has passed in Egypt and that's helping Asia, including Indonesia," said Lindawati Susanto, head of foreign-exchange trading at PT Bank Resona Perdania in Jakarta. "Locally, faster economic growth has helped the rupiah."

Indonesia's Exports Of Textile Products to China Up 30 Pct
The Free Trade Agreement (FTA) with China has increased Indonesia`s exports of textile and textile products to that country by more than 30 percent last year securing Indonesia`s position as an exporter of the products to China, the Indonesian Textile Association (API)said. API chairman Ade Sudrajat said on Sunday that textile exports to China increased by 70 percent, fibers 65 percent and yarn 65 percent in 2010. "Indonesia is a reliable source for China for basic materials of the textile industry," Sudrajat said. According to Sudrajat, demand for textile and textile products in China, a country of 1.3 billion people, could not fully met domestically. The demand has been growing rapidly as per capita textile consumption in China has increased from 12 kg to 18 kg per capita each year.

Indonesians in Algiers Remain Safe: Ambassador
The Indonesian embassy in Algiers does not wish to evacuate Indonesian citizens from Egypt despite anti-government rallies in the country, an Indonesian envoy said. "Our embassy in Algiers does not wish to evacuate and repatriate our citizens from the country because they still feel safe there," Indonesian Ambassador to Algeria Yuli Mumpuni Widarso said on Sunday. Speaking to ANTARA in a phone interview from Cairo, Yuli said there were about 1,187 Indonesians in Algeria, including 75 diplomats and local staffers of the embassy and their family members. Most of the Indonesian citizens were registered as migrant workers in Algiers. All of them were men who mostly worked in the construction and infrastructure sectors. Some worked at private companies, she said.

Textile Industry Agrees to Lift Ceiling on Electricity Tariff Hike
State electricity corporation PT PLN and the Indonesian textile association (API) have reached agreement to cancel the 18 percent capping of power price hike. PLN business and risk management director Murtaqi Syamsuddin said here on Sunday that the agreement on the matter had been reached between PT PLN and API, and that API would pay by difference between the ceiling and non-ceiling payments this year. Syamsuddin said the agreement was the follow up of the direction laid out in a coordinating meeting led by Coordinating Minister of the Economy Hatta Rajasa on February 9, 2011. In the meeting, which was attended by Energy and Mineral Resources Minister Darwin Saleh and Finance Minister Agus Martowardoyo, PT PLN had been asked to settle the problem by holding a dialogue with the industries facing cash flow after the cancellation of the power price capping in January 2011.

Indonesia to Accept US Fighter Plane Grant
The Indonesian military (TNI) has decided to accept a grant of two squadrons of F-16A/B Fighting Falcon fighter planes from the United States, TNI Chief Marshall Agus Suhartono said on Monday. He added that the military has informed the defense ministry of their approval and were currently waiting for confirmation from the US. According to him, accepting the grant was far more practical than buying new ones. "The TNI has programmed the procurement of six more advanced F-16 fighter planes from the US by 2014. However, from the price perspective, it would be more economical if we accepted the grant of two squadrons of F-16," he said, as reported by Antara news service.

Shariah Bank Assets Grow 47 Percent
Indonesia's shariah banks' assets grew 47 percent in 2010 reaching Rp100.26 trillion. "Their assets that have surpassed Rp100 trillion serve as the starting point for development of shariah banks with their total customers already reaching six million and employees around 20,000," the director of Bank Indonesia`s Directorate of Shariah Banking, Mulya Siregar, said here on Friday. The total assets of the shariah banks which are operating on Islamic principles include those of shariah general banks and shariah business units reaching Rp97.52 trillion and smallholders`s shariah banks Rp2.74 trillion. He said the shariah banking had turned into an industry worth attention from investors. "Two shariah banks are among the 25 biggest banks showing that their development is improving," he said.

Central Bank Forecasts Islamic Bank Assets to Jump by Up to 55% This Year
The assets of the nation's Islamic banks are expected to grow by half this year as people in the world's largest Muslim-majority state increasingly turn to the sector for their financial needs, according to a report by the central bank released over the weekend. "If Indonesia's economy grows at a decent pace, the assets of Islamic banks will increase by 55 percent," said Mulya Siregar, director of Shariah finance at Bank Indonesia. "With total assets exceeding Rp 100 trillion ($11.2 billion) last year, that should become a solid base for Indonesia's Islamic banks, which now have more than six million customers and employ more than 20,000 workers." The central bank forecast that Shariah assets would reach Rp 155 trillion by the end of this year, after rising 47 percent to Rp 100.26 trillion last year, with Rp 2.74 trillion of that held by rural banks, the report said.

Japanese Bizmem Reaffirm Commitment to Assist RI`s Infrastructure Development
Japanese business leaders have reaffirmed their commitment to helping the Indonesian government implement its infrastructure development program as part of the ASEAN-Indonesia connectivity system. A number of Japanese business leaders led by the head of Japan`s Kaidanren (chamber of commerce), Hiromasa Yonekura. expressed their commitment at a meeting with President Susilo Bambang Yudhoyono at his office here on Monday. Indonesia`s chief economic minister Hatta Rajasa, who flanked President Yudhoyono at the meeting, said the Japanese business leaders were ready to cooperate with Indonesia as the biggest member of the Association of Southeast Asian Nations to realize the ASEAN connectivity by 2015. Hatta said the Japanese business leaders also expressed their commitment to the development of priority metropolitan area included as one of the Indonesian development corridors.

Friday, February 11, 2011
BI Predicts Bank Credits to Grow 24 Percent in 2011
Bank Indonesia predicts bank credits would reach 24 percent this year in line with the Banks` Business Plan (RBB) that has been submitted to the central bank, Halim Alamsyah said. "In the provisional RBB that has been submitted to BI, bank credits are set to grow 22 to 24 percent," the central bank`s deputy governor said to ANTARA here on Thursday. He said the figure could be higher if the economy grows higher than 6.1 percent reached in 2010. He said the high target was set because banks` condition has quantitatively and qualitatively been better and the banks are also ready to conduct expansion. "The ownership problem of several banks that we have asked to increase their capital and improve the management has been settled. So banks are ready to conduct expansion although they still have to be prudent due to global uncertainty," he said.

JCI Lifted As Bargain Hunters Seize Day
After riding out early selling, the Jakarta Composite Index rose slightly on Friday on bargain hunting after four days of losses. The JCI closed at 3,391.77, rising 18.12 points, or 0.54 percent. It slipped as low as 3,338.53 early in the day before surging in the afternoon. The index fell 3 percent this week. About 3.19 billion shares worth Rp 5.27 trillion ($590.2 million) traded hands, with gainers outnumbering decliners 96 to 81. "Worries over inflation are still hovering in the regional market. Next week China will announce its inflation data, which is predicted to be high. This has made people uncertain," said Harry Manuputty, an analyst at Pacific 2000 Investindo. Medco Energy International, the nation's largest listed oil company, rose 0.79 percent to Rp 3,200. Indika Energy, the nation's largest integrated energy company, climbed 1.95 percent to Rp 3,925.

State Firms Pledge Support For Economic Master Plan
State-owned enterprises have committed to disbursing up to Rp 387 trillion ($43.3 billion) for the first phase of the country's economic corridor project, a minister said on Friday. Six economic corridors make up the crux of the government's master plan for development, which is hoped to turn Indonesia into one of the world's top 10 economies by 2030. It is also designed to push per-capita income from about $3,000 currently to $26,000. The government estimates the first stage of the plan will require $76 billion in infrastructure spending through 2014, with the second stage requiring $856 billion until 2025. Edwin Utama, from Boston Consulting Group, the project manager tasked with developing the plan, said up to 90 percent of the total funding would come from the private sector. "The SOEs have committed to our program to build development centers. They are ready to invest $40 billion," Hatta Rajasa, the coordinating minister for the economy, said on the sidelines of a government and SOEs retreat at the Bogor Presidential Palace.

Foreign Companies Eye Plant Projects To Tap Country's Petroleum Potential
Royal Dutch Shell plans to build a $100 million oil refinery in East Java even as National Iranian Oil Co. may scrap a similar plan, Industry Minister MS Hidayat said. Shell may team up with Saudi Arabian Oil Co. and state oil and gas company Pertamina to build the refinery in Tuban, Hidayat said on Friday after meeting executives from a unit of Shell. Darwin Silalahi, president director of Shell Indonesia, said the company wanted to tap the downstream business in Indonesia. "The demand for lubricant in Asia is growing. This is a good opportunity for us," he said. A spokesman for Saudi Aramco declined to comment when contacted.

News Focus: Yogyakarta Tourism to Develop Even Faster
Tourism in Indonesia, especially in the cultural city of Yogyakarta is expected to develop even faster following an important role played by tourist guides. Indonesian Tourism Humanity Friendship Forum (Fosipa) chairman Sarbini said in Yogyakarta over the weekend that the tourist guides had an important role to support the image of that tourism city with outstanding historical and cultural heritage. "Through their role, the image of tourism in Yogyakarta can be improved in order to have a positive impact on the tourists who visit the tourism objects in the city and elsewhere," Sarbini said. According to him the tourist guides played an important role in helping both domestic and foreign tourists and making them feel at home during their visit. To give the best possible service to both domestic and foreign tourists visiting Indonesia in general and Yogyakarta in particular, Sarbini said the tourist guides should be more professional, well educated, and well trained.

Government to Disband Anarchic Organizations
In response to this week`s two violent acts which led to the death of three Ahmadis and the destruction of three churches, the government is now making an inventory to disband anarchic mass and non-governmental organizations. "We will not tolerate anarchic organizations. Those who committed violations will be acted upon based on the law in force, no matter who they are," Home Affairs Minister Gamawan Fauzi said. The disbandment of anarchic organizations can be carried out on their local branches or on their central executive boards, depending on where the violations they have committed. The district head will the duty to freeze or disband a mass organization which violated regulations in the district level, the governor would do so if the violation was committed in the provincial level and the central government would take action against those which violated regulations in the national level.

Thursday, February 10, 2011
BI Encouraging Market Players to Invest in Long-Term Instruments
Bank Indonesia (BI) will continue to goad financial market players into putting their funds in BI`s long-term monetary instruments, a spokesman said. "With regard to monetary instruments we are directing them to long term ones such as nine-month SBI and term deposits," BI Deputy Governor Budi Mulya said here on Wednesday. "This week we will auction six-month term deposits although it does not mean that the six-month SBI is not available. We will see which one is more effective," he said. To strengthen monetary management the SBI term will continue to be shifted from six month to nine and even 12 month," he said adding "with regard to the 12-month SBI we still have yet to discuss it with the government to see its needs."

ASEAN Chair Invited to UNSC Meeting on Cambodian-Thai Border Dispute
Following swift diplomatic efforts by the Foreign Minister of Indonesia, Dr Marty Natalegawa - as Indonesia is the current Chair of ASEAN - to defuse ongoing violence between Cambodia and Thailand that started over the weekend, the United Nations Security Council (UNSC) has taken on the issue as an urgent matter. The ASEAN Chair has been invited to attend a vital meeting alongside Cambodia and Thailand at the United Nations Headquarters in New York on Monday, 14 February, a press statement from the Jakarta-based ASEAN Secretariat said here Thursday. "This reflects the global community`s trust in ASEAN as a viable regional instrument to facilitate peaceful means for dispute settlement." the statement said. "ASEAN Chair`s attendance at the UNSC meeting represents an evolution of ASEAN`s effort to resolve bilateral disputes amongst its Member States as provided for by the ASEAN Charter," said the Secretary-General of ASEAN, Dr Surin.

Indonesia to Boost Rice Stocks Amid Global Food Fears
Indonesia ordered hefty rice imports on Wednesday to boost stocks by a third in the latest sign that governments concerned about rising food prices and dwindling supplies are rushing into the market and could drive inflation even higher. Global food prices have climbed to record highs on shrinking supplies of wheat, corn, soybean and oilseeds. While rice has been less of a worry thanks to ample supplies in the top two exporters, Thailand and Vietnam, traders said other Asian governments may soon seek to boost rice stocks too. Adding to gathering nervousness among governments over food supplies, China plans subsidies to boost grain output this year, state radio said in a report on its Web site. "Maintaining a stable grain output increase has a very important meaning to managing inflation expectations, stabilizing general consumer prices, and realizing rapid and stable economic growth as well as social harmony and stability," the report said, citing a regular state council meeting held by Premier Wen Jiabao on Wednesday.

Canadian Envoy Praises Developments in Aceh
Canadian Ambassador to Indonesia and Timor Leste Mackenzie Clugston expressed admiration and happy to see the rehabilitation and reconstruction in Aceh province following the tsunami six years ago. "This is a very favorable development and progress and it is still possible to expand cooperation with the Canadian government," he said after meeting with Aceh Governor Irwandi Yusuf here Wednesday. While the humanitarian aid program for Aceh from the Canadian people has ended, that country was still promoting and expanding cooperation with the Aceh administration in building the economy of the area. During the humanitarian program, some 200 million US dollars had been contributed for the reconstruction of Aceh.

UNOCD Supports RI's Effort to Combat Illegal Logging
The United Nations Office on Drugs and Crime (UNOCD) is supporting Indonesia`s efforts to combat illegal logging by holding a Talk Series on illegal logging linked to corruption. Michele Zaccheo, the director of the United Nations Information Center (UNIC), said the institution was very concerned about climate change issue in relation with the illegal logging problem. "We are very active in combating these problems, especially in relation with climate change. And we see that Indonesia is facing emerging matters in particular, and we think that it is valuable to combat corruption through fighting illegal logging together with Indonesia," he said. In the discussion , Rudy Satrio, a law expert from the University of Indonesia, said illegal logging was closely related to corruption and needed to be eradicated entirely.

Rupiah Likely to Strengthen to Below Rp 8,900 Per Dollar
The rupiah may well strengthen further to below Rp 8,900 per dollar as foreign capital is continuing to be invested in rupiah portfolios, a Bank Indonesia (BI) official said. "Chances are that it will appreciate further (to below Rp8,900) but we can`t predict when as it depends on the conditions of our economic fundamentals," BI Deputy Governor Budi Mulya said here Wednesday. He said the rupiah would continue to strengthen on the back of the country`s economic fundamentals that are inviting a steady inflow of foreign funds into rupiah portfolios. "But we need to watch the speed of the rupiah`s appreciation because if it happens too quickly, the resulting volatility could be dangerous," he said.

Wednesday, February 9, 2011
President: There Must Be No Room for Violence
President Susilo Bambang Yudhoyono here Wednesday said there must be no room for violence, and all potentials for violence and social tensions must be suppressed firmly in accordance with the legal and democratic norms. "Although in a democratic country, we have freedom of expression and assembly, we must realize that there can be no room nor tolerance for speeches enticing people to acts of violence, much less to murder," the president said in his speech at a National Press Day function here. If there is a group or an organization repeatedly committing or calling for violent acts, security authorities must disband such an organization in line with the existing regulations and democratic ethics, according to the head of state. The president said the recent violence in Temanggung and Pandeglang could have been prevented if local security personnel had been more pro-active and faster, and all parties, especially regional leaders at the village, sub district and subdistrict levels, had cared for and were committed to peace and tolerance.

News Focus: People Condemn Attack on Houses of Worship
Various quarters have condemned Tuesday's attack on houses of worship in the Central Java city of Temanggung where three churches were destroyed and nine people were injured (four seriously) by a group of people who were dissatisfied with the prosecution`s sentencing demand for a defendant in a religious blasphemy case. Condemnations among others came from youths, religious leaders, state officials and the president who asked that the perpetrators should be brought to justice immediately because their anarchic acts could fuel wide spread violence. "Religious issues are sensitive. The faiths of both the minority and the majority should be respected," Cabinet Secretary Dipo Alam said in an short text message to ANTARA. General chairman of GP Ansor, the youth wing of the country`s largest Muslim organization Nahdlatul Ulama (NU), Nusron Wahid condemned the attack. "Houses of prayers are scared places for followers of a religion. It is our obligation to protect houses of worship from disturbance, no matter from whom or from where it comes," Nusron Wahid said on Tuesday. Groups of people took to the street and torched two churches and vandalized another one in Temanggung on Tuesday because they were dissatisfied with the five-year jail term demanded by prosecutors for Antonius Richmond Bawengan, the defendant in a religious blasphemy case in the local district court.

RI's Industrial Growth Doubled to 5.1 Pct Last Year
National industrial growth last year doubled to 5.1 percent from 2.6 percent the year before, fueled by growing investment, exports and public consumption, an official said. The 5.1 percent industrial growth surpassed the government-set target of 4.65 percent for 2010, Secretary General of the Industry Ministry Anshari Bukhari said here on Tuesday. Among the nine industrial sectors only the wood and forestry product industry recorded negative growth of 3.5 percent last year, he said. "In 2009 four industrial sectors recorded negative growth," he said. Quoting data from the Central Statistics Agency (BPS), he said the transport means, machinery and equipment industry grew 10.4 percent, fertilizer, chemical and rubber product industry 4.7 percent, food, beverage and tobacco industry 2.7 percent last year.

Indonesia President Calls for Disbanding of 'Violent' Groups
In his strongest comments since the killing of three members of an Islamic sect and anti-Christian unrest, Indonesian President Susilo Bambang Yudhoyono on Wednesday called on authorities to disband any organization that urged its members to resort to violence. "If there is an official public group or mass organization that has repeatedly conducted or even suggested violence, legal authorities must disband the organization, according to the rule of law and democratic ethics," Yudhoyono said in Kupang, West Timor, on Wednesday. "Even though a democratic country upholds freedom of expression and the right to assemble, we must not give any space and tolerance to public speech or calls to carry out violence or murder on anyone." He said the anti-Ahmadiyah attacks in Pandeglang, Banten, and unrest in Temanggung, Central Java, in which two churches and a Christian school were targeted, could have been prevented if authorities had been proactive and swifter in their responses.

RI's Payments Balance Sees $11.3 Bln Surplus in Q4
Indonesia's balance of payment in the fourth quarter of last year recorded a surplus of US$11.3 billion compared to US$7 billion a quarter earlier, according to Bank Indonesia (BI). "Foreign exchange reserves at the end of the fourth quarter of 2010 stood at US$96.2 billion enough to finance imports and foreign debt payments for 7 months," the central bank said in a statement on Wednesday. The surplus was contributed by current account and capital and financial account. The fourth-quarter current account saw a surplus of US$1.2 billion or 0.7 percent of the gross domestic product (GDP) owing to the positive performance of balance of trade in the non-oil/non-gas sector and the gas sector and of current transfer. The statement said a surplus in the balance of trade rose thanks to the high growth of non-oil/non-gas exports, particularly natural resource-based commodities in line with growing demand and high prices in the global market.

Rupiah Trades Near Highest Level Since November
Indonesia's rupiah traded near the strongest level in almost three months on speculation Wednesday that the central bank will raise borrowing costs further to curb inflation. Bank Indonesia lifted its reference rate for the first time in almost two years last week. Policy makers will increase the benchmark rate to 7.25 percent this year from 6.75 percent now, according to Bambang Eko Joewono, head of the global-markets division at Bank UOB Buana. The currency has gained 1.5 percent so far this month as exchange data show overseas funds bought $46 million more shares than they sold during the period. "People say Bank Indonesia is behind the curve as inflation is still there," Jakarta-based Joewono said. "Funds are still coming in from offshore parties, which are strengthening the rupiah."

RI Must Become Economic Growth Center: VP
Vice President Boediono said that Indonesia should be developed into a center for economic growth, not as a mere energy supplier for other countries because energy need at home had also continued to increase. "Indonesia must become an economic growth center, not as a mere energy supplier," Vice Presidential Spokesman Yopie Hidayat said here on Wednesday. The vice president has ordered state-owned oil and gas firm Pertamina to follow the national gas grand design. This means that Pertamina must give priority to the gas need at home, including the gas produced in Natuna`s Alpha-D Block gas field. He said that Pertamina and Exxon, Total and Petronas firms had signed a head of agreement. The production sharing contract is expected to be finalized early in May 2011.

Tuesday, February 8, 2011
SBY Condemns Church Attacks, Orders Legal Action
President Susilo Bambang Yudhoyono condemned the Tuesday attacks against three churches and the court building in Temanggung, Central Java, and ordered legal actions to be taken against the perpetrators. The statements were conveyed to the media by Coordinating Minister for Political, Legal and Security Affairs Djoko Suyanto. Djoko said the President had ordered the Central Java Police to find the perpetrators. "The President also instructs that legal actions be taken against the perpetrators of the anarchical acts," he said in Jakarta, as quoted by Antara. Djoko dismissed critics saying the state had failed to protect minority groups, saying the government did not tolerate violent actions against any Indonesian citizens, whatever the reason.

President Calls for Thorough Probe Into Cikeusik Incident
President Susilo Bambang Yudhoyono has called for a thorough investigation into Sunday's violence against Ahmadiyah followers in Cikeusik, Pandeglang, Banten. Speaking at a press conference at his office here on Monday President Yudhoyono said an investigation had to be made so that those who were guilty in the incident that left three peole dead would be known. "I have instructed a thorough investigation to know the cause of the incident and what had really happened with the aim of finding and punishing those guilty of violating the law," he said. President Yudhoyono on the occasion also expressed regret and grave concern over the deadly clash between Ahmadiyah Islamic sect followers and a crowd of local residents.

Economic Growth in 2010 Created 548 Thousand Jobs: BPS
Every percentage point in the 6.1 percent economic growth Indonesia experienced in 2010 created 548 thousand jobs, the country chief statistician said. "Every percentage point of the economic growth of 6.1 percent created 548 thousand new jobs," Rusman Heriawan, head of the Central Bureau of Statistics (BPS) said here Monday. He said this was so because the BPS had recorded that in the period August 2009 - August 2010, the number of job opportunities increased by 3.34 million. In August last year, job opportunities numbered 108.21 million compared with 104.87 million in August the year before. "Within one year, about 3.34 million people got jobs," he said.

Investment Plans of 22 Footwear Companies to Create 60,000 Jobs
Investment plans of 22 footwear producers from Korea, Taiwan and China are expected to create about 60,000 new employment opportunities in 2011, the Industry Ministry said on Tuesday. The ministry's secretary-general, Ansari Bukhari, said the footwear makers had expressed their intentions to set up production facilities in Indonesia and asked for government support in ensuring the availability of workers. "For that, we've agreed to provide training for trainers. Those trainers will then train workers for the 22 companies," he said at a press conference on the industrial sector's 2010 performance at his office in Jakarta. He said providing workers for footwear companies was a bit difficult, considering that the workers should have good sewing ability to produce high quality products. Therefore, he added, the government would closely supervise the trainers' performances.

President Sends Letter to Egypt to Share Experience
President Susilo Bambang Yudhoyono has sent a letter to the Egyptian government to share its experience in dealing with political crisis and transition of power with them. In a press conference at his office here on Monday President Yudhoyono said that the letter had been taken by the president`s special envoy and former foreign minister and ambassador to Egypt Hassan Wirayuda. "It contains among other things Indonesia`s wish to share its experience 12 years ago in dealing with a similar crisis now being faced by Egypt," he said. Indonesia, he said, after reform in 1998 later could successfully conduct democratic transition and brought changes from the old order of government to the new one. "Their Indonesian brothers also experienced the same thing in the past but thank God we could overcome it and eventually be able to conduct reform, democratic transition and transformation as we could see until today," he said.

Rupiah Rises to Strongest Level Since November After GDP Data
Indonesia's rupiah strengthened to the highest level in almost three months on Tuesday after the economy expanded at the fastest pace in six years last quarter. Gross domestic product increased 6.9 percent in the three months through December from a year earlier, the most since the quarter ended December 2004, the statistics bureau said yesterday. The currency has advanced 1.3 percent so far this month, the third-best performance among Asia's 10 most-traded currencies, as exchange data show overseas funds bought $21 million more shares than they sold during the period. "Investors are comfortable with the positive outlook on Indonesia's economy," said Wiwig Santoso, head of treasury and markets at PT Bank DBS Indonesia in Jakarta. "Funds seem to be flowing into the country." The rupiah rose 0.2 percent to 8,938 per dollar as of 8:12 a.m. in Jakarta, according to data compiled by Bloomberg. The currency touched 8,915, the strongest level since Nov. 12.

Economy Grows as Expected: Minister
Finance Minister Agus Martowardojo said the country`s economic growth at 6.1 percent in 2010 pleased the government as it had exceeded the 5.8 percent assumed in the state budget. "We hail the outcome. Indeed we had hoped it would surpass six percent and it did, and even reached 6.1 percent. This means that the outcome was higher then the targeted 5.8 percent," the minister said here on Monday. He said the growth in 2010 was good and had met expectations thanks to growth in domestic consumption, investment and exports. "Household consumption growth was high and we also see other factors such as investment and exports. And exports got more support because the prices of several other commodities increased. It seems that this factor played a role in the fourth quarter of 2010," the minister said.

Government to Set Up Anti-Illegal Logging Coordinating Board
The government plans to set up an illegal logging prevention and eradication coordinating board (BKP3L) to synergize related government institutions in the fight against illegal logging. Forestry Minister Zulkifli Hasan, after a hearing with the House of Representatives` Commission IV to discuss a Bill on Illegal Logging Prevention and Eradication, here, Monday evening (Feb. 7), said the new body would be led by the legal affairs coordinating minister, and the executive chairman will be the forestry minister. The government in the Bill proposed the setting up of the coordinating board to synergize anti-illegal logging efforts which have so far carried out by the police, attorney general office, the corruption eradication commission (KPK), and a special task force, the minister said. Local governments would also be involved in the planned coordinating board, he said.

President Inaugurates Peace Gong Monument in Kupang
President Susilo Bambang Yudhoyono inaugurated a monument called "Gong Perdamaian" (peace gong) at Nostalgic Park here Tuesday. The head of state, who was accompanied by First Lady Ani Yudhoyono, also dedicated a smart house and planted trees. Kupang Mayor Daniel Adoe said the monument was expected to help strengthen messages of peace, pluralism, and tolerance. The 500 m2 peace gong monument is located in the 6-hectare Nostalgic Park. The president was accompanied by East Nusa Tenggara (NTT) Governor Frans Lebu Raya and Communication and Information Minister Tifatul Sembiring. The president and the first lady also planted sandalwood trees at the location.

RI, RP Agree to Combat Terrorism
The Indonesian National Defense Forces (TNI) and the Philippine Armed Forces have agreed to step up their cooperation, including non-war military operation in combating terrorism and mitigating natural disasters. The agreement was reached at a closed-door meeting between TNI Chief Admiral Agus Suhartono and his Philippine counterpart General Ricardo A. David Jr. AFP here on Monday. At the meeting, the two military leaders discussed a wide range of issues related to close cooperation the two neighboring countries had forged since a long time ago, spokesman for the TNI Headquarters Col. Minulyo Suprapto said. "The militaries of the two countries have for a long time forged close cooperation in the fields of education and training. Especially for non-war military operations, the two militaries also have established cooperation to fight against terrorism," he said.

Monday, February 7, 2011
Indonesia's Economy Continues to Beat Forecasts
Financial markets and industry players welcomed the news of better-than-expected economic growth, but they were split on whether 2011 would beat last year's achievement. Gross domestic product rose 6.9 percent in the fourth quarter from a year earlier, the Central Bureau of Statistics (BPS) announced on Monday, well above even the most optimistic forecasts. GDP growth for 2010 came in at 6.1 percent, also above most forecasts. "The GDP announcement was not a surprise. Everybody knew Indonesia's economy would grow around 6 percent last year, so I think it did not have much influence on the market," said David Chang, a director at UOB Kay Hian Securities. Chang was also skeptical about the economy's chances to beat its 2010 performance, citing rising inflation and interest rate hikes. What would drive the economy this year, he said, was greater per capita income.

Seven Hundred More Indonesians Ready for Evacuation From Egypt
Foreign Affairs Minister Marty Natalegawa said on Monday 700 more Indonesians in Egypt are ready to be evacuated from the country. "We will send an airplane to pick up the group by tomorrow morning," the minister said adding that the government would also send logistics namely food and other needed materials for Indonesian citizen in Egypt using the airplane. Asked about why the government did not add the quota for evacuation (Around 800 people already evacuated so far from the total of more than 6,000 Indonesians living in Egypt), the minister said he did not want to take the risk evacuating so many people but creating new problems afterward such as inconvenience among the evacuees. "What matters now is the evacuation process goes smoothly," he said adding the third group of evacuees from Egypt consisting of 400 Indonesians had arrived in Jakarta on Monday morning. For security reasons, Indonesia`s foreign affairs ministry has urged Indonesian nationals in riot-torn Egypt to avoid mass concentration and continuously communicate with the Indonesian embassy in Cairo.

Yudhoyono: Indonesia Has Moral Responsibility Over Cambodia-Thailand Conflict
Indonesia which is the current chairman of the Association of Southeast Asian Nations has a moral responsibility to become part of the solution of the conflict between Cambodia and Thailand. "This year Indonesia as the chairman of ASEAN has a moral responsibility to become part of the solution (of the Cambodia-Thailand conflict)," he said at his office here on Monday. In view of that he said he had sent foreign minister Marty Natalegawa to Cambodia and Thailand to meet his counterparts. "I have sent the foreign minister to Cambodia and Thailand. Today he will be in Cambodia and tomorrow in Thailand," he said. President Yudhoyono said there had been communication before between the Indonesian foreign minister and his Cambodian and Thai counterparts regarding the intention of his visit to their countries.

Indonesia Posts 6.1% GDP Growth in 2010: Official
Indonesia's gross domestic product grew 6.1 percent last year, officials said on Monday as Southeast Asia's biggest economy confirmed its position among the top ranks of emerging markets. "Our domestic growth in 2010 reached 6.1 percent," Central Statistics Agency (BPS) chairman Rusman Heriawan told reporters. He said the resource-rich country of 240 million people posted 6.9 percent growth in the fourth quarter compared with 5.8 percent a year earlier, making it among the best performers in the Group of 20 rich and developing countries. The full-year growth figure compared with 4.5 percent in 2009 and was in line with expectations, putting Indonesia on course to reach its target of 6.0-6.5 percent growth in 2011.

BPS: Economic Conditions of Businesses and Consumers Improving
The economic conditions of businesses and consumers had improved in the fourth quarter of 2010 marked by the increase of the Business Tendency Index (ITB) and Consumers` Tendency Index (ITK), Rusman Heriawan said here on Monday. "The ITB in the fourth quarter of 2010 was recorded at 106.63 meaning business conditions improved from the previous quarter although the rate of business players` optimism declined from the third quarter," the chief of the Central Bureau of Statistics said. Rusman said the business conditions had improved due to increasing business revenues, production capacity and working hours as a result of increasing domestic demand in connection with the Christmas and New Year celebrations. He said all economic sectors recorded business improvement except agriculture, animal husbandry, forestry and fisheries whose business had dropped with their ITB record at 96.09.

Indonesian Government Pins High Hopes On Private Sector Investment
The government hopes improving infrastructure and developing science and technology under a new master plan for economic development will help Indonesia become one of the world's top 10 economies by 2030. Six economic corridors make up the crux of the plan, which details a set of government priorities for the next 15 years. It is designed to push per capita income to between $12,855 and $16,180 by 2025 and to $26,000 by 2030. It is now just above $3,000 "The master plan is a business plan for a credible, incorporated Indonesia. It will try to come up with breakthroughs and cut off problems of the past," Hatta Rajasa, the coordinating minister for the economy, said on Monday at a forum introducing the master plan to the private sector. According to the master plan, six regions will be designated as main economic corridors.

BI: Rupiah Can Strengthen Below Rp 9,000 per Dollar
Bank Indonesia (BI) said the rupiah still has a chance to strengthen below Rp9,000 per dollar following the central bank`s decision to raise its key interest rate to 6.75 percent from 6.50 percent previously. "According to our preliminary calculation, the rupiah may strengthen below Rp9,000 per dollar without disrupting the competitive edge of our exports and BI`s balance sheet," BI Deputy Governor Hartadi A Sarwono said here on Monday. He said BI had predicted the rupiah would strengthen against the dollar when it raised the benchmark interest rate, locally known as BI Rate, last Friday (Feb 4). The BI decision to raise the key rate encouraged foreign investors to again buy the local unit. The rupiah`s appreciation was badly needed to curb inflationary pressure fuelled by imported inflation, he said.

Friday, February 4, 2011
Indonesia Prepares Evacuation Plan for Its Citizens in Yemen
The Indonesian government is preparing the evacuation of its citizens in Yemen in case the political turmoil gets worse in the country as what had happened in Egypt, a minister said. "Our embassy in Sana`a is now re-counting around 3,000 Indonesians working there so if the situation gets worse, we are ready to evacuate them," Foreign Affairs Minister Marty Natalegawa said here on Friday. As to the evacuation of Indonesians from Egypt, the minister said more aircraft will be sent to Cairo to pick up Indonesians there after the first group had arrived safely in Jakarta on Jan 2. "Today around 12.30 west Indonesian time, the second group of evacuees of 430 Indonesians will arrive in Jakarta," Marty said adding another 400 more in Cairo had been registered and ready to leave for Jakarta using the next flights.

Government to Speed Up, Expand Economic Development
Coordinating Minister for Economic Affairs Hatta Rajasa has said the government will accelerate and expand the national economic development. "The just-ended meeting discussed preparations for the acceleration and expansion of Indonesian economic development," Minister Hatta said following a limited cabinet meeting at the presidential office here Friday. The minister reported to the president that there would be a working meeting with business circle soon, and another meeting with the State Enterprises Minister (BUMN) on February 21, 2011. "From there we will find out how much BUMN will commit in infrastructure investment," he said. On February 28-29, 2011, the government will organize a larger meeting with businessmen.

Government Expects US$150 Billion Investment to Accelerate Development
The Indonesian government expects investment to reach US$150 billion to accelerate development efforts in various fields. "We are expecting US$150 billion investment," Industry Minister MS Hidayat said after attending a limited cabinet meeting on business at the presidential office here on Friday. Hidayat said the investment was needed among others to develop the agricultural sector, the mining sector and a number of industries which could give an added value. He said detailed calculation of the investment would be carried out by the Investment Coordinating Board (BKPM). BKPM chief Gita Wirjawan meanwhile said on a separate occasion that the US$150 billion investment was expected to come from home totalling US$50 billion and from abroad US$100 billion.

Rupiah, 10-Year Bonds Gain After Surprise Rate Rise
Indonesia's rupiah climbed to a four- week high after the central bank unexpectedly raised interest rates for the first time in more than two years, to help contain inflation. The government's benchmark 10-year bonds advanced. Bank Indonesia increased its reference rate to 6.75 percent from a record-low 6.5 percent, Deputy Governor Halim Alamsyah told reporters in Jakarta today. The move was predicted by six of 22 economists surveyed by Bloomberg before the announcement, with the rest having forecast no change. Consumer prices in Southeast Asia's biggest economy rose 7.02 percent from a year earlier in January, the most in 21 months, data showed this week. "It's a good move to prevent inflation from going too far," said Mika Martumpal, a senior market analyst at PT Bank Commonwealth in Jakarta. "This will bode well for investors because it signals that the central bank is serious about fighting inflation."

Businesses, Markets Hail Rate Hike as Positive Move
Banks and other financial companies welcomed Bank Indonesia's decision to raise its benchmark rate to 6.75 percent on Friday, though they shrugged off suggestions the move would have a major impact on their business. They said any increase in lending rates would depend on a number of factors, including the size, liquidity and customer profile of banks and financing companies. Pahala Mansury, finance and business strategy director at Bank Mandiri, the country's largest lender by assets, said the bank would not increase its lending rate after Bank Indonesia raised its rate by 25 basis points. "We're keeping our lending rates as is," Pahala said.

Embassy Denies Indonesian Becomes Victim of Egyptian Clash
The Indonesian Embassy in Egypt denied on Thursday a report that an Indonesian named I Manda Amalia had become victim of riot in Egypt. "There is no Indonesian national who becomes victim in Egypt," Indonesian Embassy Spokesman Iwan Wijaya Mulyatno said here on Thursday. Iwan said the embassy had contacted various sides in Egypt, including the United Nations Relief and Works Agency (UNRWA). It also had contacted the Australian embassy in Cairo, but it had no knowledge about someone named Manda Amalia. "The UN in Egypt has also checked all of UNRWA representatives but found no one with that name," he said. The Indonesian embassy has also collected information from all Indonesian citizens staying in Cairo and in several Egyptian provinces but found no Indonesian national becoming victim.

Gadjah Mada University Ranks Seventh in Southeast Asia
Gadjah Mada University (UGM)) in Yogyakarta ranks seventh in the list of the 100 best universities in Southeast Asia, according to Webometrics` January 2011 edition, a spokesman for UGM, Suryo Baskoro, said here Friday. "The position increases compared to that of last year which ranked eighth," he said. According to him, at the Asian level, UGM, which is the oldest state university in Indonesia, ranked 69th, and it is in the 593rd position at the world level. "In Indonesia, Gadjah Mada University ranks first and in the past three years it was also in the top position. This year, the university again won the title as the best university in Indonesia of Webometrics version," Suryo noted. According to Webometrics`records in 2010, 2009 and 2008, UGM was also in Indonesia`s top position, he said. "Webometrics is an institution affiliated with the Spanish National Research Council, which issues a list of rankings twice a year, namely January and July," Suryo explained.

Government to Accelerate the Ratification of Migrant Workers Convention
Manpower and Transmigration Minister, Muhaimin Iskandar, said that the government is trying to accelerate the ratification of the 1990 International Labor Organization (ILO) convention on migrant workers. "We will try our best to complete it this year," he said in Jakarta, last Wednesday. He denied that the government was reluctant to ratify it. He said that the reason for the delay was because there was no agreement among the ministries on this issue. According to Migrant Care policy analyst, Wahyu Susilo, the government does not want to ratify it because they have to change the orientation of their regulations. The current regulation issued by the government, he said, was economically-oriented.

Wednesday, February 2, 2011
RI-US Partnership Has Many Similarities
The partnership between the United States and Indonesian governments in many matters, including joint military exercises has grown well because the two countries have many things in common. US consul general Kristen F Bauer said the two countries have several things in common. "The first is that the two countries are wide," Kristen F Bauer said in Pamekasan, Madura, East Java, Tuesday. Indonesia, he said, is almost as wide as the United States consisting of many states. Besides that, Kristen F Bauer said, Indonesia and the US also shared cultures, including freedom of religion. He said that followers of minority religions in the US are highly respected and each followers are free to conduct their prayers according to their beliefs.

RI to Become World's Largest Cocoa Producer
Having the ability to produce cocoa beans in large quantities, Indonesia is ready to set aside Ivory Coast as the world`s largest producer and exporter. For the last 20 years Indonesia was the world`s third largest cocoa producer after Ivory Coast and Ghana, contributing export earnings in excess of US $1.4 billion per year. In the late 1980s cocoa growing began seriously in the regions of Sulawesi island, and considerably lifted the fortune of cocoa-growing communities over the next two decades. Therefore, West Sulawesi Governor Anwar Adnan Saleh in the provincial city of Mamuju said on Wednesday that he remained optimistic Indonesia would become the world`s largest cocoa producer and exporter. In mid 2008, the Indonesian Government announced a large national program for revitalization of the cocoa industry,known as Gernas Pro Kakao.

News Focus: Evacuation Process of Indonesian Citizens in Egypt Begins
Some 455 Indonesian evacuees are expected to arrive at Soekarno-Hatta international airport Wednesday (Feb. 2) morning, as the first fleet of thousands of Indonesians to be evacuated from Egypt where around 300 people were killed in the political violence. The government has sent a special Garuda Indonesia flight (Boeing 747-400) to take them out of Egypt on Tuesday evening (Feb. 1) at around 10 pm Cairo time, the Indonesian foreign affairs ministry said in a press statement here late Tuesday. The decision to evacuate Indonesian citizens from Egypt was made in a cabinet meeting led by President Susilo Bambang Yudhoyono on Monday (Jan 31) following the worsening of political and social unrest in Egypt where demonstrators demanded that President Hosni Mubarak step down.

IMF Acknowledges Indonesia's Role in World Economy
The IMF said Wednesday it had learned from its mistakes during the 1997-1998 Asian financial crisis and had undertaken reform to give the region's countries a greater say in how the Fund is managed. International Monetary Fund chief Dominique Strauss-Kahn said the Fund wanted a fresh start with Asia as he visited Indonesia, Southeast Asia's biggest economy, and met President Susilo Bambang Yudhoyono. Indonesia was hit hard by the Asian crisis and the IMF remains deeply unpopular in the country of 240 million people for its tough package of austerity measures designed to pull the economy out of bankruptcy. "The main message today is simple. We have to look forward. The IMF has changed," Strauss-Kahn told reporters.

RI Must Support Egyptian People's Demands for Reform: Legislator
The Indonesian government is expected to be firm in its political stance in support of the Egyptian people`s aspirations for reform, democratization and more freedom, a legislator said. "Indonesia is the third biggest democracy in the world. I hope the government will have a critical view of the situation in Egypt and support the Egyptian people`s demands for political reforms," said Sidarto Danusubroto, a member of the House of Representatives` Commission I on Tuesday. He added, the government must fully support demands for political reform in Egypt because some other countries had earlier also indicated their support for the introduction of the principles of democracy in Egypt. "The authoritarian government must resign, human rights violations must be stopped and protect human rights," Danusubroto said, adding that he hoped the reform process would provide better conditions for the Egyptians, especially for the values of democracy and human rights.

Minister Launches National Entrepreneurship Movement
Cooperatives, Small and Medium Enterprises Minister Sjarifuddin Hasan here Wednesday officially launched a National Entrepreneurship Movement (GKN) in Indonesia. "As of today, a National Entrepreneurship Movement has been started," Sjarifuddin said at a ceremony also attended by President Susilo Bambang Yudhoyono. The program was aimed at creating more new entrepreneurs in Indonesia. The minister said the number of entrepreneurs in Indonesia now was only 0.24 percent of the total population whereas it needed at least two percent to be a developed country. "Through the program, we expect to raise the number of entrepreneurs by a minimum of two percent," he said. He said if the target could be achieved, the number of unemployed and poor people could be minimized and the people`s welfare improved.

Tuesday, February 1, 2011
First Batch of Evacuees From Cairo to Arrive in Jakarta on Wednesday
The Garuda Indonesia plane sent by the government to evacuate its citizens from Egypt has received clearance to land in Cairo Airport. The plane left on Monday night to begin the process of evacuating some 6,100 Indonesian citizens, mostly students and workers, from Egypt. "Finally, we can land in Cairo," Garuda Indonesia's spokesperson Pujobroto told news portal Detik.com. "We have also received confirmation that the plane can refuel in Cairo, which means we can fly straight from Cairo to Jakarta," he said. The plane is currently at Jeddah Airport and will leave for Cairo at 7 p.m. local time. "The plane will stay for an hour in Cairo and arrive in Jakarta on Wednesday around noon," he said. Women and children will be prioritized for evacuation through the 428-seater plane.

RI's Non-Oil/Non-Gas Exports Surpass Target
Indonesia's non-oil/non-gas exports in 2010 reached US$129.7 billion or 33 percent more than in 2009 and surpassing the target set in the government`s Medium-Term Development Plan. In a press conference at her office Trade Minister Mari Elka Pangestu said here on Tuesday the government had set the export target at 7.0 to 8.5 percent which was later revised to 16 to 18 percent for the Medium-Term Development Plan (RPJM). "What is encouraging is the hike in the non-oil/gas exports in 2010 is also supported by export hikes in all sectors including mining, industry and agriculture," she said. The non-oil/gas exports from the mining sector rose 35.4 percent, from agriculture 14.9 percent and industries 33.5 percent. She said the rise in the export volume and price of international commodities was the main driver of the increasing non-oil/gas exports in 2010.

With Indonesia at the Helm, Asean Can Chart a Course for the Wider World
The enthusiasm with which Indonesia picked up the torch of Asean leadership in the new year was both exciting and propitious. Debates within and beyond Asean have mostly revolved around whether member states would be able to handle the challenges of increasingly dynamic regional and international realities. Now, with a strong and steady-handed leader at the helm, Asean can move on from this debate and head bravely into the next decade. The new debate has shifted to the direction Asean will choose in the coming year. Foreign Minister Marty Natalegawa has already stated that he intends to focus on three major tasks during the coming year: making progress toward the fulfillment of the Asean Community, establishing a "dynamic equilibrium" between Asean and the world's major powers and increasing Asean's role in the global community of nations.

RI Posts US$ 22B Trade Surplus in 2010
Indonesia posted a trade surplus of US$22.12 billion (nearly Rp 200 trillion) last year with imports growing faster than exports, the latest data from the Central Statistics Agency (BPS) shows. According to data published Tuesday, exports grew 35.4 percent throughout 2010, to $157.73 billion, while imports grew faster at 40 percent in the same period to $135.61 billion. "It's not a problem that our imports grew faster than exports. What matters is that we could maintain the trade surplus, because it will go to our foreign exchange reserves," BPS chairman Rusman Heriawan said recently.

Rupiah Advances on Speculation Central Bank Will Tolerate Gains
Indonesia's rupiah advanced to trade near a one-week high on speculation the central bank will tolerate gains to help contain inflation, which accelerated at a faster pace in January from the previous month. Bonds rose. Consumer prices in Southeast Asia's biggest economy rose 7.02 percent last month from a year earlier, after a 6.96 percent gain reported for December, Central Bureau of Statistics data showed today. That's more than the 6.81 percent median forecast in a Bloomberg News survey of 21 economists. A stronger currency helps temper inflation by lowering the cost of imports. "Bank Indonesia is, perhaps, tolerating gains," said Lindawati Susanto, head of foreign-exchange trading at PT Bank Resona Perdania in Jakarta. "The central bank is always in the market, not that it is intervening all the time, but it is constantly watching the volatility."

Indonesian One of Candidates for Top Role at UN's Food Agency
Six candidates have been put forward by member nations of the UN's Food and Agriculture Organization (FAO) to succeed Senegalese Jaques Diouf as Director General in elections to be held in June. The candidates, chosen by their governments, include Jose Graziano da Silva, the ex-extraordinary minister for food security in Brazil under former president Luiz Inacio Lula da Silva, the FAO announced on Tuesday. Indroyono Soesilo from Indonesia, Mohammad Saeid Noori Naeini from Iran, Abdul Latif Rashid from Irak and Spain's ex-foreign minister Miguel Angel Moratinos Cuyaube are also candidates, along with the ex-European agriculture commissioner Franz Fischler from Austria. The election of a new director general will take place in a secret ballot to be held at the beginning of the 37th FAO Conference, to be held in Rome from June 25 to July 2. The deadline for nominations was January 31.

Foreign Ministry to Coordinate Indonesia Workers Repatriation from Egypt
The repatriation of Indonesian migrant workers from Egypt will be coordinated by the foreign affairs ministry, Manpower and Transmigration Minister Muhaimin Iskandar said here on Tuesday. "Indonesia actually has a very small number of workers in Egypt, only a few hundred people, and their repatriation following political unrest in Egypt will be coordinated by the foreign affairs ministry," Muhaimin said after the installation of echelon IV officials at his ministry. Following the political unrest in Egypt to demand President Hosni Mubarak`s resignation , the Indonesian government is currently making efforts to repatriate all its citizens from the Middle Eastern country. Muhaimin said there were around 6,000 Indonesian citizens including migrant workers, students, and tourists in Egypt and thus the government wanted them all repatriated.

BI Predicts Bank Credits to Grow 20 Pct This Year
Head of the Makassar office of Bank Indonesia Lambok Antonius Siahaan has predicted that bank credits will grow 20 to 23 percent in 2011. "This year`s macro economic prospects still have hope for banks to develop. Therefore, bank credits may still grow both nationally and in West Sulawesi," Lambok Antonius Siahaan said here on Monday. He said the credit performance is highly prone to risk of commodity price increases and inflation pressure potentials, and the role of the increasing non-bank costs restricting credit growth by 20 percent. He also said that to boost the growth of micro, small and medium businesses (UMKM) BI has required the banks to include their UMKM credit channeling plans in their bank business plans. Lambok has also mentioned various sides supporting synergistic initiatives through program linkages of Bank Umum and Smallholder Credit Banks (BPR) and initiative in the use of guarantee patterns as a risk mitigation attempt.

RI Mountaineer Reaches Aconcagua Peak
A member of the Seven Summits Expedition Team Mahitala Unpar (ISSEMU), Janathan Ginting, has succeeded in reaching the Aconcagua Peak (6,962 maters) in Argentina, an ISSEMEU spokesperson , Widyastuti, said here Tuesday. Janathan reached the highest peak in South America on Sunday (30 Jan) at 12.00 local time in his second attempt to conquer the mountain, Widyastuti said. "Janathan reached the top so the whole ISSEMU team successfully completed the climb of the fifth highest mountain in the world," Widyastuti said. Previously, the ISSEMU team consisting of Sofyan Arief Fasa, Broery Andrew, Frank and Max Agung managed to reach the same peak on January 9, 2011. Janathan in his first ascent was held up at Plaza Argentina because of a health problem. The local doctors` team required Janathan to take a rest and therefore he did not participate in the climb with the team.

Information and Hotlines - Indonesians in Egypt
The Ministry of Foreign Affairs advised the Indonesian citizens in Egypt to maintain constant communication with the Indonesian Embassy in Cairo. The embassy, located at 13 Aisah El Taimoria Street, Garden City, Cairo, can be reached at the following numbers:

+20227947200
+20227953877
+20233350627
+20237617681