Monday, January 31, 2011
President Yudhoyono Commands Evacuation of Indonesians in Egypt
President Susilo Bambang Yudhoyono on Monday commands evacuation of Indonesian in Egypt through airplane. Therefore, the government has formed a special unit consisting of personnel from Health Ministry and Transportation Ministry. The unit is led by a member of Presidential Advisory Board as well as former Foreign Minister Hassan Wirajuda. It is planned that the unit will leave for Egypt and evacuate Indonesians by commercial and military planes. "I expect the units will leave as soon as possible," said the president. Earlier, Foreign Affairs Minister Marty Natalegawa stated the government was considering to evacuate Indonesians who were still staying in Egypt. The minister said the government kept monitoring the safety of Indonesians in Egypt through 20 posts and three evacuation spots in Egypt.

RI Asks Egyptian Mily to Protect Its Citizens
Indonesian Ambassador to Egypt A.M. Sachir said his side had asked the Egyptian military authorities to protect Indonesian citizens following the current tension in that country. "We have asked the military which is taking over the handling of security affairs to protect Indonesian citizens," the ambassador told ANTARA reporter Munawar Saman Makyanie in Cairo on Sunday. He said that up to now all Indonesian citizens in Egypt were secured although demonstrations were still taking place in a number of regions there. There are about 5,000 Indonesian citizens in Egypt, about 4,000 of whom are students who mostly stay in big cities such as Cairo. "Resettlement centers where Indonesian citizens are staying are far away from locations of demonstrations, which are mostly organized in big cities and strategic areas," the ambassador said.

Curbs on Indonesia's Exports Move Into Policy Spotlight
As World Trade Organization members intensify efforts for a new trade deal, soaring food and raw material prices have raised a question that is not even on the Doha agenda: export restrictions. While WTO members haggle over the extent to which tariffs come down, countries spooked by the memory of the 2008 food crisis that sparked riots around the globe are slashing import duties to let food come in as cheaply as possible. Food inflation was one of the hot topics at the meeting of the World Economic Forum in Davos. French President Nicolas Sarkozy, who currently chairs the G-20, called for more regulation to curb speculation and volatility. Just as in 2008, trading partners have asked whether one is allowed to halt exports without regard to the rest of the world. But the rules-based trading system built up since World War II and umpired by the WTO concentrates primarily on removing barriers to imports.

SOEs' Net Profits Expected to Reach Rp 113.72T This Year
Indonesia's state-owned enterprises are expected to record a combined Rp 113.72 trillion (US$12.6 billion) net profit this year, up 19.32 percent from an estimated Rp 95.30 trillion in 2010, a minister says. State-owned Enterprises Minister Mustafa Abubakar said on Friday that his ministry had been committed to boosting the contribution of state-owned companies to the country's economy in the future. "Currently, 40 percent of our gross domestic product (GDP) comes from state-owned enterprises," he said at a press conference on the 2011 state-owned enterprises outlook at his office in Jakarta. He explained that this year, total revenues of state-owned companies were estimated to grow by 13.9 percent to Rp 1,294.37 trillion, from an estimated Rp 1,124.33 trillion last year. Companies operating in energy, financial and telecommunications sectors would remain the largest contributors of revenue, he added.

Government to Set Up Centers of Entrepreneurship at Campuses
The government through the Cooperatives and Small-Medium Scale Businesses Ministry, will soon set up centers of entrepreneurship at university campuses in Indonesia. "The establishment of centers of entrepreneurship at campuses is a short-term strategy to produce new entrepreneurs in Indonesia, Agus Muharram, the ministry`s deputy for human resource development affairs, said here Monday. Both short and long term strategies were needed to produce much more entrepreneurs in order to eradicate poverty, to reduce unemployment rate and improve the people`s welfare, he said. "We must change the paradigm from job seekers to job makers, so that there will be more job opportunities," he said. The centers of entrepreneurship at campuses could play a role in changing the paradigms, he said.

World Businessmen Still Unfamiliar With Indonesia's Products: President
Businessmen are still unfamiliar with Indonesian products, President Susilo Bambang Yudhoyono said here Saturday (29/1) evening, before leaving Zurich International Airport for Jakarta. "I met members of the international business community this morning, and most of them said they didn`t know much about Indonesian products, but knew more about Indian and Chinese goods. The perception, image and things about Indonesia are not understood enough by the international community," the President said in a press conference after attending the World Economic Forum in Davos from Thursday (27/1) to Friday (28/1). Therefore, he added, his presence at the international economic forum was to explain the business world about Indonesia`s real condition. He said he had explained the world class businessmen improvements that had been made, and problems which were being resolved by the country transparently. The problems were about business climate, law enforcement and combating corruption, he added.

VP Boediono Calls on Officials, Bizmen to Abide by Rules
Vice President Boediono said the case of former tax official Gayus Tambunan should become an eye opener for all officials and businessmen on the importance of abiding by existing rules. "As of now we must really abide by the rules and should never make wrong compromises," he said at the commemoration of the 59th anniversary of the Association of Indonesian businessmen (APINDO) here on Monday. Gayus had recently been convicted of corruption and sentenced to seven years in jail. His case has drawn a lot of public scrutiny because of its web of involvement that includes businesses and law enforcement officials. Boediono said the government supported positive partnership with businessmen to boost the country`s economy so that it would be better and able to compete in global competition. "The government is very committed to creating strong and clean governance and this needs to be responded well by businessmen," he said.

VP Optimistic Indonesia Economy to Improve
Vice President Boediono has expressed optimism that the Indonesian economy would get better in 2011 than in the previous years. "In spite of the global economic turmoil, I am certain that national economic development this year will get even better than before," the vice president said at a function to observe the 59th anniversary of the Indonesian Employers Association (Apindo) here on Monday. On the occasion the vice president asserted that the government would do all it can to take advantage of every moment and opportunity to improve the national economic. "In so doing I am sure our national economy will be better than that in 2010," the vice president said. Meanwhile, Coordinating Minister for Economy Hatta Rajasa was of the opinion that the global economic turmoil, including political crisis in Egypt and Tunisia would have no effect on Indonesian economy.

VP Launches Movement Of Healthy Snacks for Students
Vice President Boediono launched a Movement of Healthy Snacks for Students and a Task Force of Drugs and Illegal Food Eradication. The launching was conducted at the vice president`s office here Monday at the present of Health Minister Endang Sedyaningsih and Women's Empowerment and Children Protection Minister Linda Amalia Sari. The vice president said the health of the younger generation was very crucial and must be paid attention since it could have an impact on the survival of the nation. "The issue of snacks for school children seems to be trivial matter, but has a serious impact on the better survival of the nation in the future," he said. Unsafe and poor quality snacks could affect the health of the children, he said.

Friday, January 28, 2011
Indonesia Makes an Impressive Debut, Sarkozy Defends the Euro and Humiliates Jamie Dimon
Thursday will go down in the history of the World Economic Forum as one of the more action-packed days in the 41-year history of these annual meetings. It will also be recorded as the day that Indonesia was perceived by the global power elite to have joined the ranks of China and India as one of the world's fastest growing and most populous consumer markets, thanks to a statesmanlike debut here from mild-mannered President Susilo Bambang Yudhoyono. But first the story of a bomb blast here, which fortunately came to nothing. Despite thousands of gun-toting Swiss soldiers and tight security everywhere, an extremist left-wing protest group managed to smuggle into the ski resort and detonate a small bomb in the basement of a luxury hotel. But nobody was hurt, and nobody was ruffled. In fact, the explosion at the Hotel Post Morosani was so minor that meetings resumed just minutes after the blast.

Indonesia's 2010 Exports Value Reaches Record High
Indonesia's exports in 2010 reached a total value of US$150 billion, the highest figure ever achieved in the country`s foreign trade. Central Bureau of Statistics (BPS) Chairman Rusman Heriawan on Friday said Indonesia`s exports in the period January-November 2010 reached a total value of US$140 billion while the figure for December 2010 was expected to be above US$10 billion. He said natural resource-based commodities such as Crude Palm Oil (CPO) were still the biggest contributors to Indonesia`s export revenue followed by such goods as rubber, textiles, textile products and electronics. Indonesian was still known as the largest CPO producer and exporter in the world with exports reaching a total value of 10.03 billion US dollars in 2010 or up from 7.65 billion US dollars in 2009.

RI President to Speak on Sustainable Development in Davos
On the second day of the World Economic Forum (WEF) in Davos, Switzerland, Indonesian President Susilo Bambang Yudhoyono is to speak at a discussion on sustainable development. The event would be held at the Zentrum Congress Plenary Hall at 09.00 local time or 15.00 Western Indonesian time and be themed "How Can Sustainable Development Become a Driver of Inclusive Growth?" A number of presidents of other participant countries were also scheduled to speak at the forum. namely Mexican President Felipe Calderon, Finnish President Tarja Halonen and South African President Jacob G Zuma. United Nations Secretary General Ban Ki-Moon is also scheduled to deliver opening remarks at the event that is to be moderated by The New York Times columnist Thomas L. Friedman.

SOEs' Net Profits Expected to Reach Rp 113.72T This Year
Indonesia's state-owned enterprises are expected to record a combined Rp 113.72 trillion (US$12.6 billion) net profit this year, up 19.32 percent from an estimated Rp 95.30 trillion in 2010, a minister says. State-owned Enterprises Minister Mustafa Abubakar said on Friday that his ministry had been committed to boosting the contribution of state-owned companies to the country's economy in the future. "Currently, 40 percent of our gross domestic product (GDP) comes from state-owned enterprises," he said at a press conference on the 2011 state-owned enterprises outlook at his office in Jakarta. He explained that this year, total revenues of state-owned companies were estimated to grow by 13.9 percent to Rp 1,294.37 trillion, from an estimated Rp 1,124.33 trillion last year. Companies operating in energy, financial and telecommunications sectors would remain the largest contributors of revenue, he added.

Former Ambassador Nana Sutresna Passes Away
Nana Sutresna, former Indonesian Ambassador for UK,died yesterday morning after undergoing treatment at Raffles Hospital in Singapore. Born in Ciamis, West Java, on October 21 1933, Sutresna had worked at the Foreign Ministry since 1957. During his long career as a diplomat he was Indonesia's Deputy Permanent Representative to the United Nations and Head of Non-Bloc Secretariat when Indonesia becomes Head of Non-Bloc Movement. Sutresna was also posted in Austria, India, US and Mexico.

Asia Currencies, Including Indonesia Rupiah, Gain This Week
Asian currencies advanced this week, led by South Korea's won and the Philippine peso, on optimism faster growth in emerging markets will spur global investors to add to holdings of regional assets. Overseas investors pumped a combined $1.6 billion into equities in Indonesia, the Philippines, South Korea and Taiwan this week through yesterday, according to exchange data. Asia's developing economies will expand 8.4 percent this year and next, more than triple the 2.5 percent annual growth of industrialized nations, the International Monetary Fund estimated on Jan. 25. "Asian currencies have strong links to fund inflows into their stocks," said Minoru Shioiri, chief manager of Mitsubishi UFJ Morgan Stanley Securities Co. in Tokyo. "The global stock markets have been pretty solid recently, supporting sentiment for investors' risk appetite, which is good for Asian currencies."

Indonesia Scraps Import Duty on Rice, Soybeans, Wheat: Ministry
Indonesia will scrap import duty on rice until the end of March 2011 as part of the government efforts to ease food prices and fight inflation, the finance ministry said on Friday. Rice is currently subject to import duty of 450 rupiah per kg. The government will also scrap import duties on wheat and soybeans until the end of 2011 to stabilize prices, said Bambang Brodjonegoro, acting head of the fiscal policy office at the ministry. "Import duty for both soybean and wheat should return to normal levels of 5 percent each by January 2012," Brodjonegoro told reporters.

US Embassy Launches 2011 ITB Entrepreneurship Challenge Program
The US embassy in Jakarta in partnership with Asgar Muda Foundation launched the 2011 ITB (Bandung Institute of Technology) Entrepreneurship Challenge for young Indonesians. "The US has a huge stake in Indonesia`s success and part of that means we want to do everything we can to support Indonesia, especially for the young people of Indonesia to succeed," US Ambassador to Indonesia Scot Marciel said here Thursday (27/1). According to Marciel entrepreneurship is one of the areas that the US embassy may support by teaming up with creative Indonesians to promote the sector. "So I am pleased that the US Embassy in Jakarta is teaming up with the Bandung Institute of Technology (ITB) and the Asgar Muda Foundation for this year`s IEC (ITB Entrepreneurship Challenge), it is really a unique sample of collaboration, we have the university, NGO and the government that are working along to promote the event," Marciel said.

Thursday, January 27, 2011
Logistics Industry to Grow 8.3 Percent in 2011: Analysts
Research and consulting firm Frost & Sullivan projects that Indonesia's robust economic growth may help the country's logistics industry grow by 8.3 percent to Rp 1.4 trillion (US$155.16 million) this year from 1.29 trillion in 2010. Oil and gas, mineral, and plantation business segments were expected to maintain their dominance in fueling the growth of the industry in 2011, the firm's Asia Pacific vice president for transportation and logistics practice, Gopal R., said on Thursday. "Indonesia presents great opportunities for logistics service providers as most of the leading business segments [oil and gas, minerals, and plantations] have shown considerable revenue growth in the past few years," he told a media briefing in Jakarta. He said the oil and gas segment would have the most exploration potential for logistics service providers this year. In 2010, oil and gas contractors spent around $1.5 billion on sea transportation with local ship owners grabbing about $700 million worth of contracts, he added.

Mapping Project Shows the Future of Muslim World
The world's Muslim population will grow at double the rate of non-Muslims over the next 20 years, and Pakistan will overtake Indonesia as the world's most populous Muslim-majority nation, according to a broad new demographic analysis that is likely to spark controversy. If current trends continue, the study found, the number of Muslims in the United States will more than double, from 2.6 million in 2010 to 6.2 million in 2030. The percentage of native-born Muslims in the United States is projected to rise from 35 percent today to 45 percent in 2030. The "Future of the Global Muslim Population" may be the first to attempt to map the Muslim population of most of the world's countries. The analysis was conducted by two giant nonprofit groups interested in religion: the Pew Research Center and the John Templeton Foundation.

18 Percent Rise Predicted in Market Rebound
Indonesian stocks may rise 18 percent after the benchmark index's slump to a key Fibonacci support level created a "compelling entry point," New York-based stockbroker Auerbach Grayson and Co. has said. The Jakarta Composite Index plunged 12 percent from its Dec. 9 record through Monday as overseas investors exited the nation's stocks on concern faster inflation would spur higher borrowing costs. A drop of 10 percent or more from a peak signifies a correction to some analysts and investors. "Our analysis suggests that the 10 percent correction to a key Fibonacci support has created a compelling entry point," Richard Ross, global technical strategist at Auerbach Grayson, said on Wednesday.

President Calls for Correction of Global Economic Imbalances
President Susilo Bambang Yudhoyono has called for international cooperation to correct global economic imbalances and accelerate reforms in the financial sector and international financial institutions. He made the appeal in his speech before the World Economic Forum in Davos, Switzerland, on Thursday. "Certainly like what has been discussed in the G20, we must cooperate to overcome global imbalances. There is also the need to accelerate progress in the financial sector and international financial institutions before another crisis may possibly happen again," he said. He said it was very important for countries grouped in the G20 to implement the commitment that they had made during the meetings in the forum. He also emphasized the importance of a global financial safety net as a second-tier defense so that the world would be able to anticipate and resilient towards possible economic crisis in the future.

Gas Conversion Program Expected to Save Rp 35.34 Trillion
The government has set itself a target of saving up to Rp35.34 trillion net from its kerosene-to-gas conversion program, a senior gas and oil official said. Director General for Oil and Gas of the Ministry of Energy and Mineral Resources (ESDM), Evita Legowo said here on Thursday that the total amount of money that could be economized from the conversion program since 2007 to 2011 was estimated at Rp49.46 trillion. "But after it was reduced by first package cost worth Rp14.11 trillion, the accumulative subsidy efficiency amounted to Rp35.34 trillion net," she said. She said that the initial target to finish the conversion program was in 2012 but it was later shortened to 2010. "However, we can`t finish it so that we hope it would be completed in 2011 this year," she added.

Yudhoyono Says Food Security Must be G20 Priority
President Susilo Bambang Yudhoyono said on Thursday that food security should be a key priority for the G20, warning that soaring food prices could lead to more unrest. "Indonesia fully supports the prioritization of food security in the G20 agenda," the president told members of the world political and economic elite gathered at the Swiss ski resort of Davos for the World Economic Forum. Citing United Nations food agency data, Yudhoyono noted that food prices have reached 2008 prices and "could still go up." "High food prices impact on inflation but also poverty and hunger which could lead to social and political unrest," he said.

Foreign Ministry Repatriates 32 Indonesians from Tunisia
The Foreign Affairs Ministry repatriated 32 Indonesian migrant workers who were working for the Tunisian President`s family in a political conflict in the country. The return of the 32 Indonesians to their country was welcomed by Deputy Foreign Minister Triyono Wibowo and several officials from the National Agency for Placement and Protection of Indonesian Workers of Indramayu, West Java Thursday. The workers are employed by the close relatives of President Ben Ali and other Tunisian senior officials as housemaids. According to the Deputy Minister, they were successfully evacuated to Indonesia. Triyono said that the 32 workers were part of 74 Indonesians who after the political upheaval sought shelter at the Indonesian embassy in Tunis.

Government Boosting National Fish Consumption
The government is trying to increase the country's national fish production and the people's per capita fish consumption as part of its efforts to improve their nutrition intake and intelligence. In an effort to increase the country`s fish production, the Maritime Affairs and Fisheries Ministry is to focus on development of Minapolitan areas (fishery-based development cities) in 41 Indonesian regions this year. "In 2011, the ministry is to focus on formation of Minapolitan areas consisting of nine fishing based sites, 24 aquaculture sites, and eight central salt sites," said Maritime Affairs and Fisheries (KKP) Minister Fadel Muhammad during the ministry`s 2011 outlook meeting recently. The minister said the fish production target set for 2010 was achieved, both from catching and aqua-culturing activities. "Fish production from catching and culturing operations amounted to 10.83 million tons in 2010, surpassing the target of 10.76 million tons for the year," he said.

Yudhoyono Says Terrorism Still a Threat
President Susilo Bambang Yudhoyono said the world is not yet free from terrorism as shown by the bombing incident in a Moscow airport in Russia on January 24, 2011. "The bombing in the Russian airport three days ago reminded us that terrorism would still haunt us," he said before the World Economic Forum here on Thursday. He said extremism and intolerance were increasing and in view of that the way the world look at security issues had to be adjusted. Right now he said the world is also still facing uncertainty in the economic sector and is still trying to manage global economic recovery as post-crisis situation still continued as shown by debt issue in Europe, budget deficit, restructuring in the financial sector and efforts to create jobs. The conditions, he said, could create domestic tension in a country which could potentially lead to protectionism.

Wednesday, January 26, 2011
Financial Stocks Spur Jakarta Composite Index to Second Day of Gains
The Jakarta Composite Index joined its Asian counterparts in rising on Wednesday, with the Central Statistics Agency (BPS) boosting sentiment with its prediction of lower inflation. "BPS predicted inflation in January will not be as high as in December. This lifted up the market's confidence," said Budi Ruseno, an analyst with Bhakti Capital. Earlier this week, the BPS said inflation in January would be around 0.5 percent, lower than 0.82 percent in January 2010 or 0.92 percent in December. The JCI rose for the second successive day, climbing 67.8 points, or 1.98 percent, to close at 3,501.72. About 3.6 billion shares worth Rp 5.5 trillion ($610.5 million) changed hands. Gainers outpaced decliners 147 to 81.

Minister Launches E-Passport
Law and Human Rights Minister Patrialis Akbar here Wednesday officiated at ceremony marking the introduction of e-passports. The use of e-passports, which could not be faked, would increase security of the immigration documents, Minister Patrialis said. The new E-passport will have an electronic chip embedded inside the book for a more accurate identification process. The electronic-based information technology adopts and follows the security standard of the International Civil Aviation Organization (ICAO). As the use of e-passports are still in trial process, the request of the new e-passports could be made at the Central Jakarta immigration center, the West Jakarta First Class immigration, and the Soekarno-Hatta First Class Immigration.

Eastern Indonesia's Shares in GDP Rising: Government
The government claims that growth has been distributed slightly more evenly toward eastern Indonesian islands, with shares of the islands in the national gross domestic products (GDP) showing a growing trend in the past few years. National Development Planning Ministry deputy for regional development and autonomy, Max H. Pohan, said the trend could be seen in the growing shares of Kalimantan, Sulawesi and Papua, among others, in the country's GDP during the 2005-2009 period. The shares of Java, Bali and Sumatra -- centers of the country's economic growth -experienced a declining trend in the period, although they remained the largest contributors to the growth. "This is good news, that there are improvements in terms of development distribution," Max said in a discussion forum held by the ministry in Jakarta on Wednesday.

RI-Indian Bizmen's Cooperation Worth Rp 15.12 Billion Dollars
Indonesian and Indian businessmen have signed 18 memoranda of understanding (MoUs) on investments and development projects worth 15.12 billion US dollars. The MoUs were signed following a bilateral business forum attended by President Susilo Bambang Yudhoyono and about 500 Indonesian businessmen at Taj Palace Hotel`s Durbar Hall here Tuesday. The 18 MoUs included investment in important development projects like railway tracks, airports, power plants, shipyards, information technology, fertilizer plants, metal industries, and special economic zones. The Indian enterprises that signed the MoUs included India GVK, Tata Power, Reliance, ICVL, Adani Group, Trimex Group, and Pipavav Shipyars.

Government Focuses on Budget Efficiency
The government says efficiency will be the key focus of the state budget this year. "The budget will not change, but funds will be used more efficiently," Coordinating Economic Minister Hatta Rajasa told reporters in Jakarta yesterday. By cutting down non-priority expenses such as seminars and official trips, the government hopes to save 10 percent from the budget this year. The ministries and institutions have drafted ways to use the budget more efficiently. According to Hatta, the program is expected to save Rp20 trillion. The savings will be re-allocated toward programs such as infrastructure construction, weaponry funding and social programs. Finance Minister Agus Martowardojo confirmed the temporary estimate could immediately save Rp11 trillion. However, as the amount has not reached the targeted Rp20 trillion, the finance minister will call for another discussion with relevant ministries and institutions to reach a more realistic figure.

Government to Sell Garuda Shares at Rp750 per Share
The government has decided to sell 26.67 percent of PT Garuda Indonesia shares or 6.355 billion shares at a price of Rp750 per share through a public offering soon, a spokesman said. "So the proceeds from the Garuda initial public offering will reach Rp4.751 trillion," State Enterprises Minister Mustafa Abubakar said at his office here on Wednesday. The minister said the decision to set the price at Rp750 per share was made following intensive discussion and consideration of various aspects including macro-economic, regional and local share market conditions and investors` interest. Of the total shares to be released 4.4 billions belong to the airline company while the other 1.935 billion to Bank Mandiri.

Denpasar, Six Other Cities in Indonesia to Become Metropolitan
Currently, Jakarta is the only metropolitan city in Indonesia. But things are about to change. The government has decided that aside from the capital, seven other cities will be classified as metopolitan. "In two weeks, we will finish drafting the spatial planning of three of them - Medan, Denpasar and Makassar," Imam Santoso Ernawi, spatial planning directorate general of the Public Works Ministry, told the Jakarta Globe. "The other four cities are Semarang, Surabaya, Bandung and Banjarmasin." Imam said that based on their populations, those cities have passed one of the basic requirements to be classified as metropolitan. "To prevent them from being developed in a disorderly fashion, we are now finalizing the spatial planning for those cities to be metropolitan cities," Iman said.

US Agrees to Have Six RI Warships Destroyed
The United States government has agreed to destroy six more than 30 years old American-built Indonesian warships. Navy Chief of Staff Admiral Seoparno said on the sidelines of a naval leadership meeting in Jakarta on Tuesday that the six naval vessels will be destroyed in Indonesia. "It would be too impractical to send the ships back to their builders. Although they (the US) really do not have the heart to have them destroyed, they eventually agreed." A little jokingly, Soeparno said the American-built LSTs and LDPs are already 64-70 years old. And every time US military met the ships they saluted them as their seniors. So, it is time for replacements."

Tuesday, January 25, 2011
RI to Represent Developing Countries' Interests in Davos
President Susilo Bambang Yudhoyono said he would express the views and interests of developing nations at the World Economic Forum (WEF) in Davos, Switzerland, on January 27-28, 2011. The head of state made the statement at a press conference at the VVIP Room of Halim Perdanakusuma airforce base, east Jakarta, on Monday before leaving for India and Switzerland, for working visits until January 30, 2011. "The schedule in Davos will be quite tight. I have been several times invited to the WEF in Switzerland, but only this time I am able to attend. The timing is right because this year Indonesia is the chairman of ASEAN and East Asian country meeting consisting of 18 nations. Second, we deserve to be there because we have been seen of achieving sound economic performance during the global crisis 2008-2009," the president said. "I will use this opportunity to make the voices of developing countries heard in the forum," he said.

Government Secures Rp 5.2 Trillion from SUN Bond Sales
The government has secured Rp 5.2 trillion (approximately US$577 million) in funds from sales of three series of its SUN bonds. The amount was retrieved from total offerings of Rp 17.65 trillion made by bidders for four series of SUN bonds offered by the Finance Ministry bid, the ministry said in a press statement on Tuesday. The government earned Rp 850 billion from the selling of the re-opened FR0053 series from total bids of Rp 3.66 trillion; Rp 100 billion from the re-opened FR0056 series from total bids of Rp 5.66 trillion; and Rp 4.25 trillion from the re-opened FR0054 series from total bids of Rp 8 trillion.

RI Condemns Bomb Attack at Russian Airport
Indonesia condemns the bomb attack at Domodedovo airport in Russia last Monday (Jan 24). A press release from the Foreign Affairs Ministry received here on Tuesday stated Indonesia`s strongly condemns all kinds of terrorist acts and supports efforts to overcome the threat of terrorist acts and to ensure that those responsible be brought to justice. Indonesia expresses its deep condolences and sympathy to the families of the victims, the government and the people of the Russian Federation, for the loss of life of thirty five people and those injured by the bomb attack. The Indonesia wishes for the swift recovery of those injured. A suicide bomber killed at least 35 and wounded dozens Monday when he blew himself up in the packed arrivals hall of Moscow`s largest airport in an attack slammed by the Kremlin as an act of terror.

RI, India to Sign Accords on Billion Dollar Industrial Projects
Indonesia and India will sign agreements on a number of industrial cooperation projects worth up to US$16.8 billion, Industry Minister MS Hidayat said. The cooperation agreements between the government and private parties would be signed during President Susilo Bambang Yudhoyono`s visit to India on January 24-26, he said at the Hotel Taj Palace here on Monday. Hidayat said the projects still had to undergo feasibility studies but they had to be started this year. "All of the projects must be started this year," he said. He said one of the projects involves Indian big company Trimex Group which plans to build a coal-fueled ferterlizer plant worth US$1 billion in South Sumatra.

Jakarta Composite Index Bounces Back on US Stock Surge
The Jakarta Composite Index rebounded in line with regional markets following four days of losses after the Dow Jones Industrial Average had its highest close since June 2008, another indication of the global recovery. "It was also a technical rebound [on the JCI], along with the market euphoria, as investors started to buy back the stocks that had been oversold in the past five days," said Deni Hamzah, an analyst at Corfina Capital. The JCI climbed 87.84 points, or 2.6 percent, to close at 3,433.91. About 3.2 billion shares worth Rp 5.6 trillion ($621.6 million) changed hands. Gainers beat decliners 194 to 38. The Dow Jones closed up 108.68 points, or 0.92 percent, at 11980.52 on Monday, capping an eight-week rally.

News Focus: Youth to Speak Out on Climate Change
Indonesian youths and young leaders are expected to speak out on climate change at the International Youth Forum On Climate Change 2011 (IYFCC 2011) this year. With the selected theme "Listen to us, Sense Our Worries", the IYFCC is going to be held on February 21-27, 2011 in Jakarta, South Sulawesi, Central Kalimantan and East Nusatenggara. The event aims to give an opportunity to youths and young leaders to speak out on climate change by improving, understanding and inspiring the necessary actions to fight global warming and other related factors. "The IYFCC 2011 will be participated in by youths from 120 countries around the world who are grouped in the World Assembly of Youth (WAY)," Indonesian National Youth Committee (KNPI) chairman Ahmad Doli Indra Kurnia said at a meeting for the preparation of the forum at Bidakara Hotel here on Monday evening.

RI Waiting for US Okay on F-16 Jet Fighters
Indonesia is still waiting for confirmation from the United States (US) government on its request to be a recipient of F-16 jet fighter planes Washington is planning to donate to other countries. "We are now still waiting for confirmation on our request for the F-16 jet fighters," Indonesian Air Force Chief of Staff Marshal TNI Imam Sufaat said here Monday. Imam said the Indonesian Air Force had submitted a request to the United States related to 24 F-16 jet fighters Washington had been wanting to donate to other countries since 2009 but so far it had not received any confirmations from the US. "We haven`t heard any news from the US government. This is possibly because the US government has received similar requests from many other countries," he said.

Monday, January 24, 2011
News Focus: RI to Encourage Economic Cooperation Through WEF
Jakarta - Indonesia is expected to promote its economic achievements at the World Economic Forum in Davos, Switzerland, later this month, where top business executives, international political leaders and selected intellectuals are to discuss and shape agendas of global and regional industries. Indonesia whose economy was relatively strong in the face of global financial crisis in the past several years will send to the forum a delegation to be directly led by President Susilo Bambang Yudhoyono. "The presence of the president in the WEF when world economic players meet there will give Indonesia a chance to introduce various progresses it has made, including justice-based economic development," Teuku Faizasyah, the presidential special staff for international relations, said over the weekend.

Feature: Life is Wonderful, Indonesia is Wonderful, What A Wonderful Indonesia
Hearing the word 'wonderful' made us to imagine something amazing, like heaven, when nothing will bear it down. Wonderful always follows great things, so does Indonesia. The Ministry of Culture and Tourism in 2010 launched new brand for Indonesia`s tourism called `Wonderful Indonesia`, replacing the previous tagline `Visit Indonesia`. Culture and Tourism Minister Jero Wacik said the new brand was the most appropriate tagline because it represents the magnificent tourism of Indonesia. "Wonderful Indonesia represents five characteristics of the country, namely nature, culture, people, food and money," Jero said. The new brand to promote Indonesian tourism was expected to bring more tourists from other countries to visit the country, as what the Ministry of Culture and Tourism targeted to lure 7.7 million visitors in 2011.

RI Aims to Lure Rp 240 Tln Investment This Year
The Investment Coordinating Board (BKPM) has set a target of luring Rp240 trillion of investment this year, up 15 percent of the realized investment of Rp208.5 trillion last year. "We will achieve the 2011 investment target by improving policies related to investment, providing better services, granting fiscal facilities, and accelerating the development of infrastructure projects," BKPM Chief Gita Wirjawan said on Sunday. He said investment was expected to continue to rise this year after growing significantly by 54.2 percent to Rp208.5 trillion from Rp135.2 trillion a year earlier. The 2011 investment climate would largely depend on the domestic political and economic conditions which had of late been very conducive, he said.

President: Investment Realization Increases
President Susilo Bambang Yudhoyono has said investment realization in 2010 increased from that in the previous period. In his press statement at Halim Perdanakusuma airport before leaving for India and Switzerland on Monday, the president said the investment realization aside from oil/gas and banking in 2010 reached Rp208.5 trillion or 25 percent higher than the target set. "Investment realization value in 2009 was Rp135.1 trillion but it rose by 54 percent or Rp208.5 trillion in 2010," the president said. The head of state said that the rise in investment realization was part of economic development effort to step up people`s welfare. "As we know, one of the pillars of development is to continue to increase economic growth for people`s welfare and to step up investment in addition to government spending and the people`s consumption," the president said.

Government Hopes South Koreans Lead Foreign Capital Influx
In move to lure more foreign investors to Indonesia, the government is set to unveil new tax policies in the next few months. Gita Wirjawan, chairman of the Investment Capital Investment Board (BKPM), said the tax incentives will be announced "within one or two months." Foreign investors from South Korea have expressed interest in various business in Indonesia, Gita said. "South Korea could contribute about $10 billion in investment within the next three years," he said on Sunday. He did not disclose names of potential investors. Foreign direct investment from South Korea is expected to help the country's total investment reach Rp 240 trillion ($26.4 billion) this year after recording Rp 208.5 trillion in foreign and domestic investment last year.

Friday, January 21, 2011
RI, US to Combat Illegal Logging
Indonesia and the United States have agreed to combat illegal logging by providing more complete equipment in exporting the wood, a Forestry Ministry official said. "The cooperation with the US is important as it is one of the biggest destination of our wood exports after Europe and Japan," Agus Sarsito, director of international cooperation at the Forestry Ministry, said here Friday. The US promised not to receive illegal logs from Indonesia, Agus said after closing a workshop in related issues. "Indonesia has agreed with the US and some other countries that only legal logs can enter those countries," he added. In addition, Agus also said that the ministry would have further cooperation with the Industry Ministry, Trade Ministry and Finance Ministry to ban illegal log exports more effectively.

SOEs Clock 100 Trillion in Profits
State-owned Enterprises Minister Mustafa Abubakar announced that the revenue of state-owned firms reached Rp100 trillion in 2010. "From that amount profits are around Rp100 trillion," said Mustafa at the Independent Businessmen Expo 2011 in Jakarta yesterday. The profits of state-owned enterprises (SOEs) have increased over recent years. In 2009, the total net profit of SOEs was Rp88.05 trillion, an increase compared to 2008 which was Rp78 trillion. At the end of 2010, Mustafa said SOEs had generated Rp132.7 trillion, consisting of dividends amounting to Rp29.9 trillion, privatization Rp2.1 trillion and tax Rp100.7 trillion. Total assets also increased from Rp2.257 trillion (2009) to Rp2.382 trillion (2010). Mustafa added that 2 percent of SOE profit valued at Rp100 trillion would be set aside for corporate social responsibility (PKBL) programs. This year SOEs will allocate Rp2.1 trillion for such programs.

Talk of Palm Oil Tax Has Market Buzzing
Indonesia may raise its palm oil export tax to 25 percent from 20 percent starting in February after a rally in international prices, industry sources familiar with the matter said on Friday. The base export price for crude palm oil is likely to be set at $1,194 per ton in February, up from $1,112 per ton in January, a source in the Industry Ministry said on condition of anonymity. "It isn't surprising. They always revise up these taxes in order to control the outflow, so the domestic side can keep some for themselves," a palm oil analyst said. "Whenever they hike export taxes, you see prices moving up because it constrains supplies." Market talk that Indonesia, the world's largest palm oil producer, would lift the export tax to a maximum level of 25 percent in February, has swirled in the industry for weeks.

RI to Hold "Sail Wakatobi-Belitong 2011"
Indonesia will hold "Sail Wakatobi-Belitong (SWB) 2011", an annual international maritime event, to promote investment and tourism in Wakatobi and Belitong in particular. "The international maritime event will contribute positively to national economic development and the economy in the regions particularly," Marine Affairs and Fisheries Minister Fadel Muhammad said here Thursday. The "Sail Wakatobi-Belitong (SWB) 2011"`s theme will be "Clean the Ocean for Future Live". Wakatobi is located in Southeast Sulawesi Province, on Sulawesi Island, while Belitong is located in Bangka Belitung Province, on Sumatra Island.

News Focus: Stairway to ASEAN Community in 2015
ASEAN (Association of South East Asian Nations) is now trying to build an ASEAN Community based upon three pillars namely Secure Community, Economic Community and Socio-Cultural Community aimed at people-oriented community. With its motto "One vision, One identity, One community", ASEAN was formed on August 8, 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand which later expanded its membership with the joining of Brunei, Burma (Myanmar), Cambodia, Laos, and Vietnam. ASEAN was established to accelerate the regional economic growth, social progress, cultural development among its members, protection of peace and stability in the region, to provide opportunities for member countries to discuss differences peacefully. In the ASEAN 9th Summit in Bali, Indonesia, on October 2003, the forum announced its intention to build an ASEAN Community based upon three pillars, security, economic and socio-cultural Community.

Makarim Wibisono: Veteran RI diplomat chairs ASEAN Foundation
"I will not implement drastic changes within the organization. Through my role at the ASEAN Foundation I will aspire to contribute to the establishment of the ASEAN Community in 2015," Makarim said. The ASEAN Community is an integrated community resembling the European Union, marked by increasing political and economic interactions, including a single market, within the boundary of Southeast Asian countries. The role of the ASEAN Foundation, which was established in 1997, is important in helping create the ASEAN Community, which ultimately aims at enhancing people's well-being in the region. "The Blue Print of the ASEAN Community will not be attained if all the activities in the regions are still government-centered," he said. In this light, the organization could play a strategic role in enhancing person-to-person contact, which in turn helps increase the quality of human resources in a region. It could also lend a hand in helping tackle poverty and socio-economic disparity. In the next three years, Makarim plans to enhance the "we" feeling among members of ASEAN country.

Thursday, January 20, 2011
RI Economy Expected to Grow 6.38 Pct
Danareksa Research Institute has predicted the Indonesian economy will grow at a higher rate to 6,38 percent in 2011 with consumption, investment and exports expected to remain a growth engine. The economic growth still will largely rely on interest rate, Danareksa Institute Chief Economist Yudhi Purbaya Sadewa said at a discussion on market outlook 2011 here on Wednesday. Based on historical data, an interest rate of below 10 percent will be able to push up growth, he said. Meanwhile, the interest rate will very much depend on the inflation rate in the country, he said. He predicted the 2011 inflation rate will move to a level of 6.2 percent, slightly down from 6.96 percent the year before.

Government to Exempt 30 Types of Products From Import Duties
The government is planning to exempt 30 types of products from import duties as part of efforts to preserve national food stability and resilience, a minister said. "Tomorrow the tariff team will hold a plenary meeting to decide the matter. There are about 30 types of products related to food. In essence, we will always protect the public by paying attention to food-related industries at home," Coordinating Minister for Economic Affairs Hatta Rajasa said following a coordination meeting on food resilience here on Wednesday. Also present at the meeting were Industry Minister MS Hidayat, Trade Minister Mari Elka Pangestu, Agriculture Minister Suswono, Transportation Minister Freddy Numberi, Forestry Minister Zulkifli Hasan, State Enterprises Minister Mustafa Abubakar, Deputy Agriculture Minister Bayu Krishnamurti, and Deputy Public Works Minister Hermanto Dardak.

Financial System Stable Despite Capital Outflow: BI
Bank Indonesia (BI) said the country`s financial system last week had remained stable despite pressure caused by a foreign investment outflow triggered by worries over an expected inflation spiral. BI public relations official Difi A. Johansyah said here Wednesday that in the second week of January there had been selling moves by foreign investors as they lost interest in all domestic financial assets which kept sliding vis-a-vis the native sentiments in the regional market and worries over inflationary tendencies including in Indonesia. He added there had also been indications that banking intermediary activities had slid slightly due to seasonal January effects, although liquidity had remained adequate. Based on these conditions in the market, rupiah-denominated government bonds held by foreign investors decreased to 29.4 percent from 30.4 percent and SBI bonds had slid to 26.4 percent from 31.1 percent.

Indonesia to host East Asian World Economic Forum
Indonesia has been officially chosen to host the annual East Asian World Economic Forum (WEF) in Jakarta from June 12 to 13, 2011. "We will take this opportunity as this coming October we will also be hosting the ASEAN Summit [KTT ASEAN]," said Trade Minister Mari Elka Pangestu at the headquarters of the Cooperative and Small Enterprises Ministry in Jakarta on Thursday as quoted by Antara. "We will show ASEAN and other East Asian nations that Indonesia is ready to assume a leadership role in the region." This is the first time Indonesia has received the honor of hosting such an event. Singapore, Japan, Malaysia and Vietnam have all hosted similar economic forums. "For the first time, Indonesia has been given the trust to preside over such an event, which coincides with the 20th WEF in Davos, Switzerland. We want Indonesia to take on the role of a leader and become a significant player in the East and Southeast Asian region," she stated.

Indonesia Seeks Bali Success Once Again in Lombok
Traffic jams are now common in Bali, a victim of its own success in pulling in swarms of tourists and using the money to buy cars and turn rice paddies into hotels. Across a narrow sea channel lies Lombok, another volcanic island ringed by beaches, where in the capital Mataram the few foreign visitors are more likely to be slowed down by a horse-drawn cart than a tailback of Toyotas. But authorities in Indonesia, a current emerging market investor darling, have big plans for the island. A new international airport is expected to open later this year, and Qatar's sovereign wealth fund is leading a bidding race to develop an unspoilt southern coastline of white sand into a world class resort and luxury residential community. Indonesia hopes such projects will overhaul its poor infrastructure, seen as both a hurdle to growth and a cash making opportunity, with Asia showing the most investment interest in a sign of new money flows between emerging markets.

Indonesian Citizen in Tunisia to be Repatriated
The Indonesian Embassy in Tunisia has rescued two Indonesian citizens trapped in the Tunisian presidential palace. The Indonesian Ambassador in Tunisia, Muhammad Ibnu Said, contacted by Tempo yesterday said the two people were now at the embassy's guesthouse. "They were taken there yesterday (18/1) by the Tunisian security group after coordinating with the Indonesian Embassy," said Ibnu. The two Indonesians from Indramayu, West Java, worked at the Tunisian presidential caring for the children of President Zine al-Abedine Ben Ali, who escaped overseas. They have been working there for the past three years. "Their initials are S and J, they are both females born in 1977. We are still investigating how they became employed at the palace" Ibnu said. Although they are healthy, the two women were traumatized and frightened. As such, after they provide testimony they will be repatriated. "We are looking for an immediate flight to Indonesia," said Ibnu.

Wednesday, January 19, 2011
Indonesia Offers Tax Incentive For Pioneering Investors
The government this year will provide a tax holiday to pioneering companies and investors who blaze the trail for development in the archipelago's far reaches such as Papua, Finance Minister Agus Martowardojo told a press conference at the tax office on Tuesday. "The government will support industries that clearly provide added value [to reduce] the tendency among businesses to merely export unprocessed raw materials," he said. Agus said the tax breaks would be granted based on the following criteria: candidates must be industry pioneers creating new products, can provide for transfer of technology, be capable of investing in remote areas, generate job opportunities, and focus on developing value-added industries. The government hopes that such incentives would help lift investment for value-added manufacturing rather than the extractive industries that ship the nation's mineral and energy wealth abroad.

State Companies Ready to Stabilize State Bond Prices
The government has made 13 state-owned companies (BUMN) ready to keep the price of state bonds stable as part of the implementation of the Bond Stabilization Fund (BSF) plan. The state enterprises minister`s deputy for banking and financial services, Parikesit Suprapto, said here on Tuesday the plan was aimed to make the BUMNs able to absorb state bonds when their price dropped due to a crisis or a reversal of capital flow. He said the BUMNs were operating in various fields such as banking, insurance and investment and had financial strength. "There are four BUMNs in banking, seven insurance and there is also Jamkrindo and futures clearing companies. The securities BUMN meanwhile is only for an arranger," he said.

Two-Thirds of World Economic Growth Fueled by ASEAN
Trade Minister Mari Elka Pangestu said two-thirds of the world's economic growth was fueled by the economies of ASEAN (Association of Southeast Asian Nations) member countries. "Two-thirds of the world`s economic growth is being supported by the economies of ASEAN member countries and this only shows the importance of ASEAN and East Asia in the global context," the minister said at a press conference about Indonesia`s ASEAN chairmanship in 2011 here Tuesday. Mari said East Asia`s gross domestic product (GDP) was equal to Europe`s and the United States` which was 14.6 trillion US dollars. She also said Indonesia needed to utilize the opportunity as the chairman of the ASEAN Summit 2011 and face historical challenges to place the association in the world economy growth.

Investment Outside of Java on the Rise
Investment Coordinating Board (BKPM) Chairman, Gita Wirjawan said that last year's investment totaled Rp 200 trillion, surpassing the Rp160 trillion target. What is different from previous years is the drastic increase of investment outside of Java. As many as 38 percent of last year's investment, or about Rp76 trillion, came from outside of Java, an increase of 13.75 percent the previous year. "Better communications with regional leaders was a factor in the increase" said Gita yesterday. According to Gita,the increase would not have been possible without the support of organizations and professional groups. The Indonesian Chamber of Commerce and Industry (Kadin) is seen to have played a role in facilitating and supporting investment in the regions.

News Focus: Indonesian Chairmanship's Role and ASEAN Agenda
Since it was funded by the Association of Southast Asian Nations (ASEAN), Indonesia has played an important role for the regional forum uniting all its ten member countries. With its motto "One vision, One identity, One community", ASEAN was formed on August 8, 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand which then expanded with five other countries, namely Brunei, Burma (Myanmar), Cambodia, Laos, and Vietnam. ASEAN aimed at accelerating the region`s economic growth, social progress, cultural development among its members, the protection of peace and stability of the region, and provide opportunities for member countries to discuss differences peacefully. At its ninth Summit in October 2003 the Association of South East Asian Nations announced its intention to create an ASEAN Community based upon three pillars: Security, Economic and Socio-Cultural Communities.

VP: RI Must Safeguard Food Needs
Vice President Boediono said on Wednesday Indonesia must really safeguard its food needs, arguing food problems are affecting not only the country but the world as well. "Food will become a persistent issue and therefore, we must really safeguard our food needs," he said in his address to the second plenary session and national congress of the Indonesian Young Businessmen Association (HIPMI) at the Vice Presidential Palace here. Also present at the meeting were Home Affairs Minister Gamawan Fauzi, Youth and Sports Minister Andi Mallarangeng, Minister for Cooperatives and Small and Medium Businesses Syarifuddin Hasan, National Resilience Institute (Lemhanas) Governor Muladi and HIPMI Chairman Erwin Aksa.

Tuesday, January 18, 2011
Moody's Raises RI's Rating
Moody's Investor Service has raised Indonesia's rating and the bonds it issues to Ba1 from Ba2 earlier due to the country`s economic resilience and sustainable macro-economic balance. Moody`s Vice President-Senior Analyst of Sovereign Risk Group Aninda S Mitra said in a press statement received here on Monday that the higher rating had also been given to Indonesia because of the country`s debt and foreign exchange reserves which are still appropriate and also because of the improving prospects of foreign investment which is hoped to be able to strengthen the country`s external position and its economic prospects. "We have raised the credit rating because of the economic momentum which was expected to be supported by stable domestic demand and the normal speed and sequence of policy and structural reforms and increasing direct foreign investment. The country`s debt and foreign exchange reserves at the central bank are also on the right track, Aninda said.

Indonesia Pursues 'Investment-Grade' Rating
Bank Indonesia Governor Darmin Nasution said the decision made by Moody's to increase Indonesia's debt rank was an acknowledgment from the international community that Indonesia's fundamentals were improving. Darmin said Moody's had good reason to increase Indonesia's rank because the country had strong domestic demand, accurate structural reform and rising direct investment. "Foreign debt has also decreased and foreign exchange reserves are sufficient," he said. Darmin hoped the Moody's rating would allow Indonesia to attract more investment, strengthen the expansion of economic sectors and create more jobs. "I also hope the rating will improve the investment grade within the next year," he added. The former tax director-general called on the government to provide infrastructure to control inflation, study the financial market and repair the capital flow structure toward long-term investment.

Indonesia's Soft Power Vibrates Through Others
Singaporean Foreign Minister George Yeo nodded his head in agreement while writing in his notebook, as Indonesian Foreign Minister Marty Natalegawa talked about Indonesia's priorities for ASEAN. The ASEAN ministers listened carefully during the retreat meeting at the Oberoi Hotel in Lombok on Sunday. ASEAN Secretary-General Surin Pitsuwan, who sat at Marty's left, smiled throughout the meeting and praised Marty's statements. Thai Foreign Minister Kasit Piromya and Malaysia Foreign Minister Dato' Sri Anifah Aman raised occasional questions and offered comments, which Marty took in stride. Marty interspersed his talk with bits of humor, receiving outbursts of laughter from the other ministers.

US Supports Tripartite Malacca Straits Security Arrangements
The United States supports the existing framework of security arrangements made over the Malacca Straits` littoral countries, the chief the US Pacific naval fleet said. In July 2004, Indonesia, Malaysia and Singapore established a cooperation scheme to maintain security in the Malacca Strait. The trilateral coordinated patrol scheme was dubbed MALSINDO Malacca Straits Coordinated Patrols. Since the joint patrols were carried out, the crime rate in the 500-mile long waterway dropped by about 70 percent in 2009. "I think it`s very important that the existing framework is based on cooperation between related coastal states. As the cooperation continue to function, I think the role that us navy can play here is to support the cooperation by providing exercises or courses needed by the navy of the countries," Commander of the US Pacific Fleet Admiral Patrick Walsh said here on Monday during his visit to the National Monument in Central Jakarta.

RI Guarantees Security in Malacca Strait
The Indonesian government guarantees security in its territorial waters, especially those located near the Malacca Strait and the South China sea, an official said. Indonesian Military Commander Admiral Agus Suhartono said so on Monday during a meeting with US Pacific Fleet Commander Admiral Patrick Walsh. The Indonesian military chief, through his spokesman Rear Admiral Iskandar Sitompul, said Indonesia had been conducting coordinated patrols in the strait with Malaysia, Singapore and Thailand. "The patrols have proven to be effective in reducing piracy in the Malacca Strait," Iskandar said.

Investment Forecast to Continue Growing
Domestic and foreign investment in Indonesia is forecast to increase to Rp 230 trillion ($25.5 billion) this year, higher than the Rp 200 trillion of realzed investment last year, an Investment Coordinating Board (BKPM) executive said. "Up to 40 percent of that target will be invested in areas outside Java such as Sulawesi, Maluku, Nusa Tenggara and Papua," BKPM chairman Gita Wirjawan said after signing a memorandum of understanding on coordinating potential investment development between the board and the Indonesian Chamber of Commerce and Industry (Kadin). "This year we will focus on infrastructure and through public-private partnerships hopefully we will be able to reach our target." Kadin chairman Suryo Bambang Sulisto concurred, saying the chamber would bring more investors to potential areas outside of Java and promote their business opportunities.

At Head of Asean, Indonesia Takes Lead in Fostering Reconciliation in Burma
Indonesia wants a more active role in trying to nudge Burma towards democracy, especially in the reconciliation between its military rulers and opposition parties. Marty Natalegawa, the minister of foreign affairs, said Indonesia, which took over the Asean's rotating chairmanship this year, was planning to hold several meetings with the junta and opposition leader Aung San Suu Kyi throughout the year. "Indonesia will lead talks to ensure [Burma] maintains its path toward a more democratic nation," Natalegawa said on Monday, the final day of the AseanForeign Ministers' Retreat in Lombok. Indonesia had joined a chorus of nations urging the release of Suu Kyi, who spent 15 of the past 21 years under house arrest.

Indonesia Stock Market Up, Rupiah Little Changed
The Jakarta Composite index on Tuesday morning gained 1.54 points, or less than 0.1 percent, to 3,537.27, reversing an earlier loss of as much as 0.8 percent. Krakatau Steel, Indonesia's largest maker of the metal, rose 0.9 percent to Rp 1,170 rupiah. Krakatau expects revenue to rise to as much as Rp 21 trillion ($2.3 billion) this year from an estimated Rp 18 trillion to Rp 19 trillion last year, Bisnis Indonesia reported, citing Irvan Kamal Hakim marketing director at the state-owned company. Wahana Ottomitra Multiartha, a consumer financing company, fell 2 percent to Rp 500. Wahana may cut the size of bonds it plans to sell in the first quarter to Rp 1 trillion rupiah from RP 1.5 trillion, Kontan reported, citing Suwandi Wiratno, president director at the company. Wiratno couldn't be reached when called at his office.

Friday, January 14, 2011
United States Welcome to Monitor Torture Trial: Indonesia Military
The Indonesian Military says it welcomes the United States governments pledge to closely monitor the trials of three Indonesian soldiers accused of torturing two Papuans. TNI spokesman First Admiral Iskandar Sitompul said on Friday that the military tribunal - described by Human rights activists as a sham - was open to the public and anyone was permitted to attend the hearings. "For us, interest in the case from anyone is not a form of [foreign] intervention. The trial is open to the public," Iskandar said. He claimed, however, that the legal process must be conducted independently by those involved in the legal process.

Government to Implement Forest Conversion Moratorium in January
The Forestry Ministry is to implement a 2-year moratorium on the issuance of permits for the conversion of primary and peat forests this year soon. "The moratorium will apply to primary and peat forests," said Forestry Minister Zulkifli Hasan here on Thursday, adding that the halt in issuance of primary and peat forest conversion permits would be put into force in January 2011. He said the moratorium had been agreed on in an Indonesia-Norway Letter of Intent (LoI) signed by the two countries on May 26, 2010. This agreement stipulates that the two-year moratorium must start in January 2011. The LoI also carries a chapter stipulating the trial implementation of the REDD plus (Reducing Emissions from Deforestation and Forest Degradation) provinces to be implemented in January 2011 whereas the second phase to be carried out in January 2012.

Indonesia Hopes to Revamp Sukuk Assets to Help Boost Infrastructure Projects
Indonesia plans to add road and rail projects to the types of assets that can be used to pay returns on Islamic bonds in a bid to support its $140 billion development program. The government is seeking approval from the country's Shariah board to use future fees from transport facilities to be constructed over the next three years as the underlying asset for sukuk, or Islamic bonds, said Rahmat Waluyanto, director general of the Finance Ministry's Debt Management Office. The cash flows that back government Islamic bonds are restricted to state-owned property. Islamic banking assets were 9 percent of Malaysia's in 2010, according to central bank data. In a bid to catch up, the government also plans to offer tax cuts on Shariah investment accounts, while Bank Indonesia will streamline the approval process for new financial products to expand Shariah finance.

Bank Indonesia May Raise Interest Rate 'At Appropriate Time'
Indonesia's central bank may raise its benchmark interest rate at "an appropriate time," Bank Indonesia Governor Darmin Nasution told reporters on Friday in Jakarta. Core inflation will probably accelerate he said, without elaborating. He also said Indonesia would allow the rupiah to strengthen to a "certain level," without specifying a level. Bank Indonesia kept its policy rate at a record-low 6.5 percent on Jan. 5, even as consumer prices rose at the fastest pace in 20 months in December. With the specter of inflation hovering over Indonesia, calls for the central bank to raise interest rates sooner rather than later are growing increasingly loud.

Indonesia's Social Media Obsession Seen Changing Rules of Marketing
Indonesians' love affair with social networking sites has got marketers using the medium to promote their brands to an ever-growing audience, online marketing experts say. "We are now in the era of social media," Firman Kurniawan, a marketing communications lecturer at the University of Indonesia, said on Wednesday. "It shifts the way marketers work, from focusing on the product to a more human-centered marketing objective." He added that social media had become a key tool for brand marketers to contact customers directly, while also allowing customers to have their say on the product as a means to get involved in its conception or development.

Government to Allow Geothermal Mining Activities in Conserved Forests
The government will soon issue a presidential decree to allow the opening of conserved forests across the country for geothermal mining activities, a senior official says. Forestry Minister Zulkifli Hasan said Thursday that the 2009 mineral and coal mining law has opened ample room to utilize conserved areas for geothermal mining, but the detailed rules had to be regulated through a presidential decree. "Around 80 percent of our geothermal reserves are located in conserved forests. We're now waiting for the completion of a presidential decree on underground mining activities, because geothermal mining is included in that mining type," he told reporters in his office in Jakarta as quoted by detikFinance news portal.

Thursday, January 13, 2011
RI Economy to Grow 6.2% in 2011: World Bank
The World Bank expects Indonesia's economy to expand 6.2 percent in 2011, less than the official government estimate of 6.4 percent. World Bank (WB) senior economist for Indonesia Enrique Blanco Armas said Thursday the economic growth target was not considered pessimistic, despite a recent statement by Vice President Boediono that the Indonesian economy could expand by up to 8 percent this year. "I wouldn't consider this pessimistic if you see conditions in Europe," Enrique said at the World Bank office in Jakarta on Thursday. Last month, the World Bank cut its economic growth estimate for Indonesia to 5.9 percent from 6 percent for full-year 2010, because of domestic-related supply constraint issues caused by weather anomalies that hampered harvests.

Jakarta Composite Index Rises for Second Day in a Row
The Jakarta Composite index gained 10.17 points, or 0.3 percent, to 3,564.94, rising for a second day. PT Adhi Karya (ADHI IJ), a state-owned construction company, jumped 7 percent to Rp 900, the steepest increase since Dec. 14. The company won a 902 billion-rupiah ($99 million) contract to build three coal-fired power plants, Adhi said in an e-mailed statement on Thursday. PT Astra Agro Lestari (AALI IJ), Indonesia's largest listed plantation company, gained 3.4 percent to Rp 25,800. Palm oil futures rose 0.5 percent to 3,668 ringgit ($1,201) a metric ton in Kuala Lumpur, advancing for the first time in five days. Astra Agro plants only oil palm trees.

Government to Sell Rp 5 Trillion Worth of State Bonds
The government is to sell Rp5 trillion indicative worth of state bonds (SUN) in rupiah currency on January 18, 2011, a spokesperson said. Debt Management Director General of the Ministry of Finance Rahmat Waluyanto said the state bond sales are aimed to meet most of the 2011 state`s budget funding target. The government would auction off four state budget series consisting of the newly issued SPN20120119 with discount interest payment due January 19, 2012 and three other re-issued series namely FR0055, FR0053 and FR0054. The FR005 re-issue series with 7.38 percent fixed interest that will due on September 15, 2016 and coupon payment at every March 15 and September 15.

RI, US Air Forces Continue Cooperation
The Indonesian and United States air forces will continue to develop their cooperation, especially in education and joint exercises. This was revealed in a courtesy call of US Press Attache for Indonesia Colonel Kevin A Booth to the Halim Perdanakusuma airbase in Jakarta Wednesday. In a meeting with commander of the airbase Air Commander M. Nurullah, Booth expressed his wish to continue and increase the cooperation with the Indonesian Air Force. In the closed-door meeting the two also discussed a draft cooperation in the form of joint exercises between the two sides which had already been carried out. Chief spokesman for the Halim Perdanakusuma air base Major Sus Ali Umri Lubis said one of the joint exercises routinely carried out is the "Teak Iron" involving air force transport aircraft of the two countries.

RI to Make Sure ASEAN Progressing
Indonesia is to make sure that ASEAN achieves significant and concrete progress during 2011, a minister said. ASEAN`s significant progress towards the formation of an ASEAN Community 2015 was one of three priorities set by Indonesia for its one-year leadership, Foreign Affairs Minister Marty Natalegawa said at the handing over ceremony of ASEAN Permanent Representative Head post at the ASEAN Secretariat here Wednesday. It would begin with having a measurable scorecard needed to assess achievements made by each ASEAN member country in implementing ASEAN policies politically, economically and socio-culturally. The ASEAN Secretariat would play an important role in measuring all achievements made by ASEAN member nations, he said.

Some 97 Indonesians Evacuated in Queensland Floods
A total of 97 Indonesians living in Queensland have been evacuated from a major flood that had hit the Australian state in the past several weeks, a foreign ministry spokesman said. "Until Thursday morning, a total of 97 Indonesians have been evacuated. They are reported to be in good conditions," Foreign Ministry Spokesman Michael Tene said here on Thursday. He said that the Indonesian Consulate General in Sydney continued to monitor the fate of evacuated Indonesian citizens, particularly with regard to their food supply and their health. Besides having coordination and monitoring the condition of the Indonesian citizens, the consulate general also opened a telephone hot-line +61416208869 for Indonesians in Indonesia who wanted to get information about their family members/relatives or vice versa.

Wednesday, January 12, 2011
RI Optimistic South Sudan Referendum to Remain Peaceful
Indonesia is optimistic the on-going referendum in South Sudan will proceed peacefully , Indonesian ambassador to Sudan Dr Sujatmiko said here on Monday evening (Jan 10). "We are confident the situation and conditions during the referendum in South Sudan will remain conducive until the end." he said. Sujatmiko on behalf of the Indonesian government was leading a team of Indonesian observers on the referendum in South Sudan from January 9 to 15. Sujatmiko and his team looked very active touring a number of polling stations around Juba, the capital of South Sudan, to monitor the implementation and process of the referendum. He said the conducive situation was reflected by the enthusiasm that the South Sudanese have shown. Millions of South Sudanese turned out to cast their vote orderly and peacefully.

RI Donates US$1 Mln for Australian Flood Victims
Indonesia has donated one million US dollars to help flood victims in Queensland, Australia, according to a minister. "President Susilo Bambang Yudhoyono yesterday decided that Indonesia would provide a donation worth one million US dollar to Australia," Foreign Affairs Minister Marty Natalegawa said here Wednesday. Minister Marty had called his Australian counterpart Kevin Rudd on the phone to tell him about the Indonesian government`s relief aid earlier Wednesday. "The aid will be given to `Family Appeal Fund` established by the Queensland state government to help flood victims," Marty said. Australia had previously given a lot of donations to Indonesia in the aftermath of natural disasters such as tsunami and earthquakes.

Jakarta Composite Index Gains On News of European Bond Sales
The Jakarta Composite Index ended its four-day losing streak on Wednesday as regional markets rebounded on news that Japan and China would buy bonds to help lift Europe. "Bond purchases by Japan and China boosted investor confidence that the action will certainly help Europe recover from crisis," said Praska Putrantyo, an analyst at Infovesta Utama. The JCI rose 99.64 points, or 2.9 percent, to close at 3,554.77. About 7.5 billion shares valued at Rp 6.9 trillion ($766 million) changed hands. Gainers outnumbered decliners 197 to 53. Praska said Indonesian stocks may advance further this week after the four-day drop because shares had been oversold on concerns about inflation.

Indonesia May Sell Dollar Bonds to Domestic Market
Indonesia may offer dollar-denominated conventional and Islamic bonds targeted at local investors this year, to curb price swings caused by capital outflows. "In the next issuance of global bonds, we might want to increase the allocation for domestic investors, or we might issue entirely in the domestic market," Rahmat Waluyanto, director-general of the Finance Ministry's debt management department, said in an interview in Jakarta on Tuesday. "We need to be vigilant as this can cause some potential risks, especially if there is any trigger to market volatility." The dollar debt of Southeast Asia's largest economy has handed investors a gain of 16.3 percent in the past year, indexes compiled by HSBC Holdings Plc show, the best returns in the region.

Government to Offer Retail Sukuk Early February
The government plans to offer retail sharia bonds (sukuk) to the public early next month, an official said. "(The bonds) will likely be offered in early February or the first week of February and issued in the third week of the same month," Director General of Debt Management at the Finance Ministry Rahmat Waluyanto said here on Wednesday. The government has named 20 agents to sell the retail sharia bonds. They include PT Bank Mandiri Tbk, PT Andalan Artha Advisindo Sekuritas, PT Mega Capital Indonesia, PT Bahan Securities, PT Bank Internasional Indonesia Tbk, PT Bank Syariah Mandiri, PT Danareksa Sekuritas, PT Bank Rakyat Indonesia Tbk, and PT Bank CIMB Niaga Tbk.

Garuda Indonesia IPO May Raise $1.1 Billion, Help Expand Fleet
PT Garuda Indonesia, the nation's biggest carrier, and a shareholder may raise as much as $1.1 billion in the country's largest initial public offering in more than two years. Shares will be sold at Rp 750 to Rp 1,100 each, Elisa Lumbantoruan, the airline's acting finance director, told reporters in Jakarta today. The offering will comprise 9.36 billion shares, or a 37 percent stake, including new shares and existing stock being sold by PT Bank Mandiri, Garuda said in a statement published in Suara Pembaruan newspaper today. "This IPO will help Garuda become more efficient in competing in the global market," Hadiyanto, the airline's president commissioner, said at the press briefing today. Garuda will use its sale proceeds to pay for new planes as it works to quadruple the size of its low-cost unit to take advantage of rising travel demand in Asia.

Tuesday, January 11, 2011
Government to Increase Food Production by 5.0 Pct
The Agriculture Ministry has set itself the target of increasing food production by 5.0 percent in 2011 as there was a need to offset harvest failures. "This is what we`re planning to formulate, namely a food production increase by 5.0 percent. The key is that what has been planned must not fail to be realized as in 2010 there were no massive harvest failures," Deputy Agriculture Minister Bayu Krisnamurthi said here on Monday. He was explaining his ministry`s target on the sidelines of a working meeting between President Susilo Bambang Yudhoyono and all regional leaders at the Jakarta Convention Center. According to Krisnamurthi, the 5.0 production increase target was based on an instruction from the president that the agricultural sector must increase production, something that had prompted the ministry to formulate the planning.

President Calls for Prompt Steps to Curb Food Price Hikes
President Susilo Bambang Yudhoyono has called for prompt steps to deal with the recent food and energy price hikes. Speaking at a working meeting with regional heads at the Jakarta Convention Center on Monday, the President said the government remained obliged to stabilize food and energy prices. "Our obligation is to stabilize prices, food prices in particular. And we must continue it," he said. In this respect, the head of state said there must no longer be a conflict between relevant ministers and regional heads over market operations designed to control food prices.

18 Firms Target Automotive Industry
Eighteen foreign companies have submitted proposals for a combined investment of more than $900 million in Indonesia's automotive industry, according to data from the Investment Coordinating Board. "Five firms are still completing the registration process while 13 firms have advanced to get their principal agreement," Teuku Otman Rasyid, the deputy chief of the investment board, known as the BKPM, said on Tuesday. He said most of the companies were from Japan, with two from Singapore and one each from the United States, Thailand, South Korea, Malaysia, Hong Kong and China. Those companies are expected to start operations here this year. Employment projections range from 20 to 3,437 workers.

SBY Sees Expanded Jakarta as New Option to Reduce Capital Burden
If moving the capital to another location is too difficult, why not just expand it? The Indonesian government has been struggling to find a solution to the massively overcrowded Jakarta, and has been toying with the idea of completely relocating the capital -- an idea that, while not impossible, would take time and a lot of money. Now, presidential spokesman Julian Aldrin Pasha says President Susilo Bambang Yudhoyono "has expressed a desire to see a bigger and wider Jakarta." Julian said areas that have been considered for Jakarta's expansion are Purwakarta and Sukabumi in West Java. Cirebon, located between West Java and Central Java, could be considered too. The idea is that once the city has been expanded, the capital would remain in Jakarta, but the administrative centers could be moved to the expansion areas.

News Focus: Government Taking Measures to Curb Basic Necessary Price Spiral
As basic necessary prices are soaring, the government is planning to free certain food commodities from import duties in an effort to curb inflation but legislator considers the policy to be a wrong step. Yet the government is determined to free at least four food commodities from value added tax and import duties as an endeavor to keep national food resilience and price stability under control. "We will make fiscal approaches, such as freeing certain commodities from value added tax and import duties so that they will not fuel price increases. We will possibly make the decision and make it effective next week," Chief Economic Minister Hatta Rajasa said over the weekend. He said that the step will be taken as an anticipatory step to stabilize food prices and keep them within the financial reaches of the people. The Central Bureau of Statistics (BPS) has noted that inflation in 2010 was 6.96 percent exceeding the target of 5.3 percent.

Garuda Seeks New Wings, Up to $500 Million in IPO
Garuda Indonesia, the nation's flagship carrier, aims to sell a 36.5 percent stake, or 9.3 billion new and existing shares, via an initial public offering next month, according to two sources with direct knowledge of the plan. Indonesia's booming economy is attracting great interest from foreign investors and encouraging local companies to tap the equity market. The benchmark share index jumped 46 percent last year, supported in part by $2.18 billion in foreign ownership - more than double that of 2009. Garuda hopes to raise up to $500 million via the long-delayed IPO, according to a term sheet seen by Reuters earlier this month.

Ambassador Dr. Dino Patti Djalal Paid a Courtesy Call to Ambassador Ronald Kirk, Head of the USTR, on January 7, 2011
On January 7th, 2011, Ambassador Dr. Dino Patti Djalal Paid a Courtesy Call to Ambassador Ronald Kirk, Head of United States Trade Representative (USTR), at USTR Office. At the meeting, Ambassador Djalal conveyed to Ambassador Kirk the appreciation of US effort to develop trade balance for both countries. Ambassador Kirk acknowledges the progress that had been made, especially progress on investment. He also notices the importance for both countries to give attention on concluding issues in hand.

Monday, January 10, 2011
RI Praises Fully Enthusiastic Referendum in South Sudan
The Indonesian government praised the high spirits of the people of South Sudan in exercising their voting rights in that country`s referendum starting on Sunday. "The referendum is so full of spirits. We praise the high enthusiasm of the Sudanese people, at least in the first day of the referendum," Indonesian ambassador to Sudan Dr. Sujatmiko said in Juba Sunday afternoon. The ambassador was member of a team of observers representing the Indonesian government to observe and monitor the referendum held for a week until January 15, 2011. Ambassador Sujatmiko noticed that there were three things, which made the people of Sudan so enthusiastic in using their voting rights. Firstly, the high readiness of the South Sudan Referendum Commission, eliminating all presumptions that the referendum would fail.

RI's 2011 Economic Growth May Reach 8%
Vice President Boediono has forecast that Indonesia's economic growth may reach 8 percent this year, surpassing an earlier estimate of 6.4 percent, if all elements of the country's bureaucracy work as they should. "Our economic growth may exceed 6.4 percent. Given the current positive trend, reaching between 7 and 8 percent is not impossible," he said as quoted by tempointeraktif.com. Boediono spoke in front of all Cabinet ministers, governors and regional heads across the nation at a meeting on the implementation of the 2011 development programs at the Jakarta Convention Center on Monday. The growth target could be realized if the government strengthened coordination among all decision makers at national and regional levels, he said.

RI More Successful in Development in 2011: Yudhoyono
President Susilo Bambang Yudhoyono expressed his strong belief here Monday that Indonesia's development this year would be successful and much better than last year's. "For the year 2011, we need to be optimistic that our development programs will be much more successful. There are four factors that enables us to boost our country`s development," he said. Speaking before governors of all provinces who attended a working meeting here, President Yudhoyono said the first factor was related to the country`s ongoing growth momentum. The second factor referring to assessments of various parties, the president said Indonesia had a great potential to be an advanced country.

Government to Expand Farmland Area by 2 Mln Hectares
The government has set itself the target of expanding the country's agricultural land area by 2 million hectares in the medium and long terms, a minister said. "That is part of the government`s medium-and long-term plans. This year, we will take the first step by adding 500,000 hectares to the existing agricultural land area," Coordinating Minister for Economic Affairs Hatta Rajasa said at an all-Indonesia governors` working meeting here Monday. The addition of 500,000 hectares would be done in the Merauke region, Papua. "For 2011, our target is an expansion by a minimum of 500,000 hectares and it will include the opening of food estates by the private sector and the community," he said.

Beware of Global Issues Affecting RI's Economy: President
Indonesians have been warned to beware of global crisis issues that could have a serious impact on its economic growth, President Susilo Bambang Yudhoyono said. "We have to beware of three crises that could trigger disputes among global countries. They are food supply, energy and water," the President said here when opening a Governors` Meeting at the Jakarta Convention Centre Monday. Floods that hit Australia the size of Germany and France recently is a sign of climate change. It affected agriculture, mining, and other economic sectors in Australia and also have a serious impact on the global economy, Yudhoyono said. Although water seemed so abundant, but some areas and countries were now undergoing water shortages, he said.

10 Achievements in 2010: President
President Susilo Bambang Yudhoyono (SBY) claimed Monday that Indonesia had attained 10 targets in 2010. "We had 10 achievements in 2010," SBY told participants of national working meeting on the Indonesian Development Program 2011 at the Jakarta Convention Center in Jakarta. First, Indonesia's economy grew strongly in 2010. "This was reflected in the rise of Jakarta Composite Index. We also improved our competitiveness in the world and our investment grew significantly," he said. Second, SBY said there were several indicators of improved public prosperity. "Third, we also maintained political stability. Checks and balances between the government and legislators were smooth," SBY said. Fourth, law enforcement was upheld and corruption was curbed.

Al Gore Praises RI President's Climate Change Leadership
Former US Vice President Al Gore praised Indonesian President Susilo Bambang Yudhoyono's leadership and courage on his commitment to tackling climate change nationally and globally. Speaking at the opening of "The Climate Project Asia Pacific Summit" here Sunday, the 2007 Nobel Peace Prize laureate said he was grateful to President Yudhoyono for his dream, courage and leadership on global warming issue. Al Gore praised President Yudhoyono's courage when there was no initiative from the G-77 countries in various international negotiations about the climate change issue. President Yudhoyono spoke when there were no G-77 leaders who were willing to appear to take any initiative and assisting them to break the prolonged and frustrating deadlock of several issuesm said the producer of a documentary film titled "An Inconvenient Truth" that led him to receiving the Nobel Prize in 2007.

Indonesia Can Be Super Power on Geothermal Energy: Al Gore
Nobel Peace Prize recipient Al Gore has predicted that Indonesia can become a geothermal super power country. Speaking to the participants of The Climate Project Asia Pacific Summit here on Sunday, Al Gore said that Indonesia could become a super power country in electricity production from geothermal energy and this would benefit its economy. He said that Indonesia was the world`s third largest electricity producer country from geothermal energy, followed by the Philippines. Geothermal energy is a carbon-free electricity resource, he said. Solutions to climate change involved many steps which could reduce cost and reduce carbon dioxide emission, Al Gore, who is also an Oscar winner for the movie "Inconvenient Truth," said.

Friday, January 7, 2011
RI Hopes to See More Human Rights' Development in Myanmar
Indonesia during its chairmanship of ASEAN in 2011 hopes to contribute to the development of human rights in Myanmar, Foreign Minister Marty Natalegawa said. "During the past few months we have witnessed an important development in Myanmar namely the general election and the release of Aung San Suu Kyi. Those two changing conditions must be digested and absorbed in a proper way so that we will be able to think of what to be done next to ensure that the issue of human rights in Myanmar can have a sense of closure in 2011," minister said. The minister also hoped to see the ASEAN Human Rights Commission to be more effective in fulfilling its mandate of reflecting the commitment of ASEAN countries to respect human rights. Earlier, the Deputy Director of a non-governmental institution Human Rights Working Group, Choirul Anam, said during its term as ASEAN chair in 2011, Indonesia should be giving high priority to human rights issues.

RI, US Discuss Results of Joint Oceanic Expedition
Indonesian and US officials met in Washington DC Thursday evening to discuss the results of the two countries` joint oceanic expedition conducted in Indonesian waters not long ago. Speakers at the discussion included Indonesian Ambassador to the US Dino Patti Djalal, US Ambassador to Indonesia Scot Marciel, Indonesian Maritime and Fishery Affairs Minister Fadel Muhammad, Dr. Bruce Alberts, White House Science Envoy, and Dr. Jane Lubchenco, US Under Secretary of Commerce for Oceans and Atmosphere and NOAA Administrator, according to information from the Indonesian embassy in the US capital on Thursday. The discussion was broadcast live on the Internet ( https://statedept.connectsolutions.com/science) to enable the public to interact with the speakers and experts at the discussion.

RI-US Oceanic Expedition Benefited Both Sides: Minister
Marine Resources and Fisheries Minister Fadel Muhammad said a joint oceanic expedition carried out by the US and Indonesia not long ago had yielded results of benefit to both countries. "In the beginning, there was criticism against the project. I had to explain it to the public," Minister Fadel said in a teleconference and discussion on the Indonesia-US Oceanic Expedition in Washington DC on Thursday. He said the critics claimed the joint deep-see exploration program would mean revealing Indonesia`s ocean data and contents to the US. However, Fadel said, the criticism was incorrect because the expedition was purely for scientific research purposes.

Government to Allocate Rp 70 Trillion for Merapi Survivors
The government is to allocate Rp70 trillion for survivors of Mt. Merapi eruption in Yogyakarta and Central Java who make cleaning and development activities in Cash for work program, Agung Laksono said here Friday. "The Cash for Work allowance is the second phase which is valid from January to April 2011," Coordinating Minister fro People`s Welfare said. Agung said the first stage was conducted in November to December 2010 for Rp8.7 trillion. "It is part of economic recovery of local citizens by giving them cash if they work for cleaning and construction after the disaster," he said.

FM Reaffirms Indonesia's Support for Palestine
Foreign Minister Marty Natalegawa on his annual speech on Friday said Indonesia remained committed to supporting the freedom of Palestine. "The Palestinian cause is an Indonesian cause. The establishment of an independent and sovereign Palestine existing side by side with Israel is a comprehensive solution that would bring an end to the protracted Palestinian-Israeli conflict," Marty said. The minister explained that in 2010 Indonesia had continued to provide concrete support for Palestine through capacity building for the Palestinian people and government. He said Indonesia was not only bilaterally provided capacity building assistance but also worked to gather support from Asia and Africa for the same purpose.

RI, US to Continue Joint Research in East Indonesia Waters
Indonesia and the United States are to continue their joint maritime research activity in east Indonesian waters with a project to explore the waters around Halmahera island beginning in May 2011, a marine affairs ministry official said. "The cooperation between Indonesia and the US will be continued in Halmahera waters next June," said Gellwynn Jusuf, secretary general of the Marine Affairs and Fisheries Ministry here on Friday. He said the cooperation would be a continuation of a joint oceanic expedition conducted by Indonesia and the United States in Sangihe-Talaud waters in North Sulawesi in the middle of 2010.

Faced With Skyrocketing Food Prices, Indonesian Government to Speed Up Work on Food Estate
The government has pledged to speed up development of a large-scale food production area and curb farmland conversion in a bid to slow rising food prices. "We will go all out in tackling this problem. Last year, the food estate development encountered several problems related to spatial planning, but we have sorted this out," said Hatta Rajasa, coordinating minister for the economy. Papua will host the Merauke Integrated Food and Energy Estate, a 480,000-hectare agricultural estate that is scheduled for completion by 2014. The $5 billion project is expected to produce almost two million tons of rice, two million tons of corn, 167,000 tons of soybeans, 2.5 million tons of sugar and 937,000 tons of palm oil per year while also providing grazing space for 64,000 cattle.

Government Remains Cautious Over Foreign Investment in Mining Sector
The government expects $3.2 billion of investment to flow into the mining sector this year as foreign investors turn to Indonesia to capitalize on possible increases in global commodities, an Energy Ministry official said. A looming increase in global demand for commodities will lure investors, said Bambang Setiawan, director general of mineral, coal and geothermal at the Energy Ministry. "We are targeting moderate investment in the mining sector this year, at $3.2 billion, slightly higher than last year's $3.18 billion," Bambang said on Friday. Priyo Pribadi, the head of the Indonesian Mining Association, forecast an even more bullish future for the sector, projecting as much as $8 billion in investment.

Thursday, January 6, 2011
BI Keeps Its Interest Rate at 6.5 Percent
Bank Indonesia has decided to keep the BI Rate at 6.5 percent but at the same time also called for close monitoring of the inflation. The central bank`s governor, Darmin Nasution, said here on Wednesday it decided to keep the rate at 6.5 percent because the high inflation pressure in 2010 was caused more by the hike in the prices of staples and administered price hike by the government. "The high inflation pressure happens because of the hike in the prices of food particularly rice and therefore it is not a monetary phenomenon and need not be responded to with a change in the monetary policy," he said. Darmin said Bank Indonesia had been closely monitoring inflation that tended to rise in the future in line with some disruptions in supply of basic necessaries and the possibility of price adjustment by the government.

Government Provides Rp 25 Billion to Overcome Impact of Lava Floods
The government has set aside Rp25 billion to rehabilitate infrastructure damaged by lava floods from Mount Merapi on Monday night, a chief minister said. Agung Laksono, coordinating minister for people`s welfare said after a limited cabinet meeting on Wednesday the funds had been disbursed and would be distributed by the ministry of public works to the regions affected by the floods. He said a total of US$30 million had also been made available from the Java Trust Foundation kept in the National Development Planning Agency (Bappenas) as a leftover from the 2006 Yogyakarta earthquake funds. The funds, he said, would be allocated for recovering the economic activities of the people living on the slopes of Mount Merapi who had lost their resources and livelihood following the mountain`s eruption in October 2010.

Tourism Ministry Set to Launch 'Wonderful Indonesia' Campaign
Culture and Tourism Minister Jero Wacik said Thursday the government would soon launch its latest tourism campaign slogan, "Wonderful Indonesia". The slogan will be used for the next two years, and has received positive responses so far, Jero said Thursday. "We'll begin using 'Wonderful Indonesia' in January 2011. We've had [positive] feedback from friends abroad, who said 'Wonderful Indonesia' is good because Indonesia does have wonderful, beautiful nature, wonderful cultures, wonderful people and wonderful food ...so we deserve to be called wonderful," Jero told reporters in Jakarta.

North Korea Asks RI to Help Create Peace
North Korea has asked Indonesia to help create peace in the Korean Peninsula, Taufiq Kiemas, chairman of the People`s Consultative Assembly (MPR), said. "North Korea hopes Indonesia could contribute to creating peace in the Korean peninsula," he said after receiving North Korean ambassador Jong Chun Gun at the parliament building here on Thursday. Taufik said during the meeting the North Korean ambassador asked Indonesia through the MPR leadership to contribute to creating peace in the peninsula. According to him Jong Chun Gun said North Korea had been tired of dealing with conflict with South Korea for the past 60 years.

RI Reemphasizing "People-Centered" ASEAN
Indonesia as the current chair of the Association of South East Asian Nations (ASEAN) is reemphasizing the role of the public in efforts to attain the objectives of an ASEAN Community. "A people-centered ASEAN is the key to making the association relevant to the public and to the attainment of the objectives of an ASEAN Community," said Indonesia`s Permanent Representative to ASEAN, Ambassador I Gede Ngurah Swajaya here on Thursday. Speaking after following the first official meeting chaired by Indonesia during its recently-assumed ASEAN Chairmanship, Ambassador Ngurah Swajaya added that ASEAN should also maintain an upward trajectory, although strengthening ASEAN`s internal consolidation is key. "Deepening economic linkages and connectivity as stipulated in the ASEAN Community Blueprints are also essential," he added, according to a release made available by the Jakarta-based ASEAN Secretariat.

SBY Offers 9 Solutions to Prevent Soaring Prices
President Susilo Bambang Yudhoyono said there were nine solutions to prevent soaring food prices. "To resolve a crisis in which prices skyrocket, the government's role is imperative. We don't just give up and follow the market mechanism," Yudhoyono said when opening a Cabinet meeting at the presidential office in Jakarta on Thursday. Yudhoyono said intervention to maintain the prices of particular commodities was necessary, as well as implementing a special fiscal policy for imported and exported food commodities. The productivity of farmland, he said, needed to be improved. He also encouraged people to cultivate food crops in their gardens in order to strengthen food security in the family. SBY also urged the prevention of smuggling and hoarding. "Those who do such things must be punished," he said.

BI Governor: Indonesian Economy Remains Strong
Bank Indonesia believes the country's economy will remain strong with its gross domestic product in 2011 and 2012 growing by 6.3 percent driven by strong domestic demand, especially investment. The central bank`s governor, Darmin Nasution, said here on Wednesday the Indonesia Balance of Payment (NPI) in 2011 was predicted to record a relatively big surplus although it would be lower than in 2010. "Exports would still grow high but import growth would be higher in line with increasing domestic demand to make the surplus in the current account lower. On the other hand, the financial and capital current account is predicted to still record a high surplus, driven by huge inflow of funds in the form of portfolios or direct investment," he said. He said the global economic recovery momentum was still overshadowed by debt crisis risks in Europe. However despite the still weak economic recovery in the advanced countries the economic performance of the emerging markets continued showing an improvement.

Government to Increase CPO Exports by 16 Percent
The government intends to increase crude palm oil (CPO) exports in 2011 by 16 percent from the previous year`s figure, a minister said. "CPO and all of its exportable derivatives are targeted to grow 16 percent with a 1.2 billion US dollar investment plan in 2011," said Trade Minister Marie Elka Pangestu here Wednesday. According to the Ministry`s data, Indonesian CPO products export value in 2010 reached 10.03 billion US dollars or increased from 7.65 billion US dollars in 2009. The government will also expand CPO products export markets to new markets to increase the commodity's potentials such as the Middle East and Eastern Europe, she said.

Wednesday, January 5, 2011
Government Seriously Strengthening Legal System: Minister
The government is making serious efforts to strengthen the country`s legal system, and doing it by improving the efficacy of the Judicial Mafia Eradication Task Force, the Corruption Eradication Commission, National Police Commission and the Prosecutors` Oversight Commission, a spokesman said. "The government is making serious efforts to strengthen the existing legal institutions because the people have become increasingly able to assess their performance," Coordinating Minister for Political, Legal and Security Affairs Djoko Suyanto said after officiating at a function to mark the 4th anniversary of the Marine Security Coordination Board (Bakorkamla) here on Wednesday.

Indonesia Eyes Spot on Green Climate Fund Committee
Environment Minister Gusti Muhammad Hatta says Indonesia cannot afford to be left off a committee that will administer a $30 billion international fund to tackle climate change. Delegates to the Cancun climate summit last month agreed to set up a Green Climate Fund that is expected to be formally established at the climate talks this year in Durban, South Africa. The fund is expected to allocate $30 billion in aid that was pledged by developed countries for 2010-12 at the Copenhagen climate talks in 2009, aimed at financing adaptation and greenhouse gas mitigation efforts by developing countries. The most vulnerable countries - including small island states and African nations - will be prioritized for funding.

JCI Rally Continues After Bank Indonesia Holds Rate
The Jakarta Composite Index rose for the seventh-successive day after Bank Indonesia announced it would leave its benchmark interest rate at a record low 6.5 percent, despite a late-year surge in inflation. "Stocks were low in the first session today as investors were concerned higher inflation rates may force policy makers to increase interest rates, but they rebounded as the interest rates remained unchanged, strengthening investor confidence on Indonesia's continuing economic stability" said Mohammad Alfatih, an analyst from Samuel Sekuritas Indonesia. The JCI advanced 0.63 percent, or 23.65 points, to close at 3,783.71 on Wednesday. About 4.2 billion shares worth Rp 5.5 trillion ($610.5 million) changed hands on Wednesday. Gainers and decliners were even at 103. Bank Rakyat Indonesia, the nation's second-largest bank by assets, climbed 2.9 percent to Rp 10,600, and Bank Negara Indonesia, the nation's third-biggest state-owned bank, rose 1.3 percent to Rp 3,875. Rather than raise interest rates, BI ordered lenders to set aside more reserve to reduce inflationary pressure.

Australia Welcomes RI's New Foreign Policy 'Activism'
Major regional dialogue partners of ASEAN, such as Australia, are watching closely to see how Indonesia exercises its leadership in ASEAN as the country begins to chair the group this month. Australian Ambassador to Indonesia Greg Moriarty expressed optimism that under Indonesia, ASEAN could enhance the grouping's role in regional and global arenas, stating that Indonesia's vision of global architecture matched Australia's."Our aspirations match Indonesia's own aspirations. We [see]Indonesia's increasing confidence and leadership role as positive and matches Australia's interests. "We see Indonesia's foreign policy activism as a positive sign," he told The Jakarta Post recently.

US Continues Maintaining RI's F-16 Falcons
The United States government continued the maintenance of the F-16 jet fighters of the Indonesian Air Force. This statement was made by former US Air Force Commander in the Asia Pacific (US PACAF) General (ret.) William J Begert when making a courtesy call on Indonesian Air Force Chief of Staff Marshal Imam Sufaat in Jakarta Tuesday. Spokesman for the Indonesian Air Force Air Commodore Bambang Samoedro said after attending the meeting, adding that the maintenance of F-16 jet fighters of the Indonesian Air Force is going on normally following the embargo. "It had already been three years that they had been maintaining our F-16s," Bambang said.

Fishery Exports Projected to reach US$3.2 Billion
The Maritime Affairs and Fisheries Ministry has projected that the exports of fishery products will amount to US$3.2 billion. Meanwhile, up to the end of 2010, exports reached $2.66 billion from the targeted $2.9 billion. "The export value of 2010 did not reach the target due to various factors, such as viruses preventing shrimp cultivation, weather changes and new regulations issued by importer countries," Maritime Affairs and Fisheries Minister Fadel Muhammad announced at the ministry's annual meeting in Jakarta on Wednesday. Due to the virus, the ministry had to revise the shrimp production target this year, from 410,000 tons to 350,000 tons. "Last year we imported mother shrimp from California and Hawaii. This year, we are trying to reduce the imports," said Fadel.

Indonesia Expects 50% Rise in Investment From Singapore
Indonesia expects neighbor Singapore to boost its investment in the country to capitalize on the conducive political climate and growing economy, a top minister said. Investment from Singapore is expected to increase 50 percent this year, Coordinating Minister for the Economy Hatta Rajasa said. He expressed his optimism after meeting on Tuesday with Lim Hng Kiang, Singapore's Minister of Trade and Industry, in Jakarta. "Having Singapore as an international financial hub will hopefully help promote investment opportunities in Indonesia to investors," Hatta said on Tuesday.

'Eat Pray Love' is Helping Bali Tourism: Official
Julia Roberts' Eat Pray Love has apparently helped boost tourism in Bali, with the province's tourism agency reporting an increase in the number of visitors after the movie was released. Bali tourism agency head Ida Bagus Kade Subhiksu said Wednesday there had been an increase in the number of tourists visiting Bali in December compared with figures for previous months, which averaged about 200,000 visitors a month. "In December, there were more than 230,000 visitors," he said, as quoted by tempointeraktif.com.

Bank Indonesia Holds Interest Rate Despite Inflation Stress
Bank Indonesia kept its benchmark rate unchanged at a historical low of 6.5 percent on Wednesday despite lingering worries of accelerating inflation stemming from higher commodity prices. The central bank says it will focus on measures to manage surging capital inflows and improve coordination with the government to contain inflationary pressures. "Inflationary pressure may stem from volatile foods and administered prices, as well as rising commodities prices in the global market," said Darmin Nasution, the governor of Bank Indonesia.

Tuesday, January 4, 2011
RI's 2010 Revenue Exceeds Target: Ministry
The government has announced that the country's total state revenues last year exceeded their target by 2.1 percent. The 2010 revised state budget had a target of Rp 990.5 trillion (US$109.9 billion), while the actual realized figure was Rp 1,011.6 trillion. The Finance Ministry said in a Tuesday press statement that the increase was boosted by non-tax revenue in 2010 of Rp 267.5 trillion, which exceeded their previous target of Rp 247.2 trillion by 8.2 percent. Total revenue from taxes exceeded the target of Rp 743.3 trillion by 0.1 percent, to Rp 744.1 trillion.

Indonesia Condemns Terrorist Attack in Egypt
Indonesia strongly condemns the inhuman terrorist attack on a church in Alexandria, Egypt, on January 1 that has left 21 dead and 79 others wounded, the foreign ministry said in a statement received by ANTARA here on Monday. It said the Indonesian government expressed its deep condolences and sympathy to the Egyptian government and people as well as families of the victims. A car bomb which exploded outside a Coptic church in the tourist city of Alexandria, 141 kilometers north of Cairo, clearly proved that terrorism remains a threat to people and therefore continuous monitoring and cooperation from all parties need to be done to overcome it, it said. Indonesia remains committed to cooperating with the government of Egypt to achieve their common goal of overcoming terrorism.

Government to Offer 50 Oil, Gas Blocks in 2011
The government is to offer 50 oil and gas blocks in Indonesia to interested parties in two auctioning rounds in 2011, a spokesperson said. Evita Legowo, director general of oil and gas affairs at the Energy and Mineral Resources Ministry, said here on Monday, 39 of the 50 oil and gas blocks would be offered through a regular tender mechanism. "The other 11 blocks will be offered through a direct approach system," she said. The government would this year also offer 10 coal bed methane (CBM) blocks as part of its effort to improve the performance of the country`s oil and gas sub sector over the next few years.

Government Hopes Manufacturing Industry to Grow 5.0 Pct
The government hopes the country`s manufacturing industry will grow by up to five percent this year to provide more employment, a senior minister said. "In 2010 it grew by four percent. This year it is hoped it will be able to grow 4.5 to 5.0 percent. Manufacturing industry growth is important because it will provide more employment," Coordinating Minister for Economic Affairs Hatta Radjasa said here on Monday. The industry minister, he said, had started making revitalization efforts to spur growth in the industrial sector including manufacturing. In the 2010 - 2014 period the ministry would focus on developing six industries, namely labor-intensive industries, small and medium industries, capital goods industries, natural resources- based industries and industries that have high growth and special priority.

Minister: Capital Inflow for Direct Investment to Rise
Chief economic minister Hatta Rajasa said he believed foreign capital inflow for direct investment would rise this year. "In 2011 it will increase by more than US$12 billion," he said here on Tuesday. He said in 2010 the capital inflow for direct investments reached US$12 billion and for portfolios US$16 billion. Although the capital inflow for direct investment would rise it did not mean that capital inflow for portfolios would decline, he said. "This is because our capital market`s index growth is the highest in the Asia Pacific region," he said. He said he hoped investment cooperation with Singapore would become one of the factors that would boost foreign direct investment in 2011.

Komodo Ranks 6th as 7 Wonders Nominee
Indonesia's Komodo dragon (Varanus comodoensis) has moved to sixth place on the list of nominees in the selection of the 7 wonders of nature in the last week of December 2010, a local official said. The move happened based on the high interest of voters within 28 days, head of the promotion section at East Nusa Tenggara Provincial Culture and Tourism Office, Ubaldus Gogi, said here Tuesday. "The New 7 Wonder Foundation reported that this week`s criterion was based on the high level of voter`s interest measured within 28 days. The Komodo dragon ranked sixth in the last week of December," he said. According to Ulbadus, his office continued to encourage people throughout the country to actively take part in giving votes in order to keep the Komodo between the first and seventh position.

US Women Soccer Coaches Train RI Women, Disabled Athletes
Four women's soccer coaches from the United States held a soccer training clinic on at Jakarta State University here Monday (Jan 3) for more than 150 young Indonesian women and disabled athletes. "The American coaches also will hold clinics in Surabaya (January 5) and Pontianak (January 7)," a press statement on the official website of the US embassy in Jakarta said. Prior to leaving Jakarta, the coaches shared the stage @america with four female Indonesian athletes (Rally Marina - car racer, Fanny Kalumata, player of the women`s national basketball team, Andari Putrianti - member of the Indonesian Youth National Female Softball team and Santia - Silver Medal winner at the SEA GAMES 2010 in Athletics) and Monica Desideria from the Indonesian Soccer Association (PSSI) and ANTV to discuss the opportunities and challenges facing women in sports. In attendance were approximately 70 female athletes from Jakarta and several members of the press.

Hatta: Climate, Oil Price Changes Greatest Challenge in 2011
Coordinating Minister for Economic Affairs Hatta Rajasa said climate change and oil price fluctuations would pose the biggest challenge for the Indonesian economy in 2011. "Global climate change will affect food and energy," he said at a new year press conference here on Monday. He said the government had taken various policies to anticipate threats in the food sector in 2011. "The government would continue stabilizing the price of food through market operations and increase stocks," he said. He said the government would in the near future issue two presidential instructions relating to food price stabilization efforts.

Monday, January 3, 2011
Indonesian Market Looks Set for Continued Growth in 2011
The Jakarta Composite Index was the best performer in the Asia-Pacific region, outpacing even the Shanghai Composite Index and the Hang Seng. The benchmark JCI closed out 2010 at 3,703.51, up 46 percent for the year. Fuad Rahmany, head of capital market regulator Bapepam, said average daily volume grew 18.7 percent to Rp 4.8 trillion ($533 million) per day, the highest rise in the Asia Pacific, from Rp 4.04 trillion in 2009. Market capitalization reached Rp 3,200 trillion last year as stock prices rose and more companies went public. Twenty-three companies listed their shares on the Indonesia Stock Exchange (IDX), while rights issues and bond sales generated more than Rp 220 trillion. Government bonds were also hotly sought after, drawing Rp 130 trillion in fresh funds, Fuad said.

RI First Country to Extend Assistance for Gaza in 2011
Indonesia proves to be the first country to extend humanitarian assistance to the Palestinian people in 2011. "We welcome the humanitarian assistance from the Indonesian people to the Palestinian people, and this is the first foreign assistance for Palestine in 2011," said Chairman of Egypt`s North Sinai Red Crescent Gen. (retired) Osama Serghani in Rafah, Egyptian Gaza border gate, Sunday (Jan 2). Serghani said the second humanitarian aid to Palestine from abroad, second only to Indonesia, was from the Asia To Gaza Solidarity Caravan-1 ship that docked in the port of Rafah on Sunday evening, several hours after the delivery of relief from Indonesia. The Asia to Gaza Solidarity Caravan-1 ship transported 170 tons of humanitarian aid for Palestinian people and boarded NGO activists from various Asian countries, including 12 from Indonesia.

Government Eager to Achieve 7 Percent Economic Growth
President Susilo Bambang Yudhoyono is eager for Indonesia to achieve a 7-8 percent economic growth by 2014. The rate is above this year's economic growth, which is expected to reach 6 percent. The President also hopes that Indonesia's GDP can reach at least US$1 trillion. The effort to meet the target will be intensified next year. "2011 is the first year of our economic acceleration and expansion," said President Yudhoyono at a meeting at Bogor Palace yesterday. The meeting was attended by all economic ministers, Bank Indonesia Governor Darmin Nasution, Investment Coordination Board (BKPM) chief Gita Wirjawan and Jakarta governor Fauzi Bowo. According to the Coordinating Economic Minister Hatta Rajasa, if the target is achieved in 2014, Indonesia will be among the countries with the highest rates of economic growth. At that time, Indonesia's per capita income will be US$5.000. Currently, Indonesia's per capita income is US$3,000. Hatta is convinced that Indonesia has great potential and can achieve the target.

Improvement of BEI Performance Can Support Economic Success
President Susilo Bambang Yudhoyono has asked Indonesia Stock Exchange (BEI) authorities to improve their performance in a bid to make domestic economy a success. "There are many mountains to climb and therefore let us continue to work hard to make our national economy a success. That is all I expect," President Yudhoyono said at a function to open the stock trading at BEI here on Monday. On the occasion the head of state expressed hope that the Indonesia Stock Exchange would be known as the best capital market in Asia region. "More companies are expected to go public in the future with higher capitalization and transaction, and BEI is expected to be better known in Asia Pacific region in the capital market development," the president said.

BEI to Establish Investor Protection Fund
The Indonesian Stock Exchange (BEI) will this year establish an Investor Protection Fund (IPF) to provide a feeling of security for investors in the Indonesian capital market, its director said. BEI President Director Ito Warsito said here on Sunday that regulations regarding the Fund would be drafted next year after the revision of the Capital Market Law (UUPM). "We will ask the assistance of the Deposit Insurance Agency (LPS) which has been established within the banking industry. It has learned the mechanism how it was formed. Maybe we will somehow follow its format," he said. The idea on the establishment of IPF had come to surface since in the past three years where its presence was needed in response to the very often violations taking place with the capital market.

Ministry to Prioritize Health Services for Poor in 2011
The Health Ministry will prioritize health services for the poor and people living in remote areas in its main work program in 2011, its chief said. "The most important thing is that we will bring health access closer to the people, especially the poorer and those living in remote areas," Health Minister Endang Rahayu said here Monday after installing new officials at her ministry. She said the health services would of course have to meet good quality standards and be given more health staff and linked to better reference channels. Health services in 2011 would be different from those provided in 2010 whereas this year the services will be more preventive in nature, unlike last year when services had been provided in hospitals.

President: RI's Per Capita Income Must Reach US$ 10,000 by 2025
President Susilo Bambang Yudhoyono said Indonesia's per capita income should be 10,000 US dollars by 2025. "Let us strive to achieve a per capita income of 10,000 (US dollars)," said President Yudhoyono in his speech at the 2011 inaugural trading at Indonesia Stock Exchange here on Monday. The the figure was set based on rational calculations, he said adding that he was optimistic the target would be met as the Indonesian people had doubled their per capita income within the last five years. According to the Head of State, the struggle to increase Indonesia`s per capita income that of the whole Indonesian people from all walks of life. "We will struggle for this goal in a fair way for all Indonesians," he said.

2011 Micro Credit Target at Rp20 Trillion
The government is targeting the disbursement of Micro Credit Support (KUR) in 2011 to total Rp 18-20 trillion, up from Rp16.4 trillion in 2010. "We are stepping on the gas. Each year the amount is increasing," State-owned Enterprises Minister Mustafa Abubakar said in Jakarta last weekend. This year the government has elected six state-owned banks, Bank Negara Indonesia, Bank Rakyat Indonesia (BRI), Bank Mandiri, Bank Tabungan Negara, Bank Bukopin, Bank Syariah Mandiri and 13 regional banks to distribute the micro credit. BRI was recorded as the biggest credit distributor last year with 9.7 trillion, or a half of the total KUR.