Tuesday, January 31, 2012
JCI Has Best January Performance Since 2006
Indonesian stocks rose on Tuesday, sending the benchmark index to its best January showing in six years as investor sentiment toward the region turned positive. The Jakarta Composite Index added 26.53 points, or 0.7 percent, to close at 3,941.69, rebounding from its biggest loss in two months. The measure climbed 3.1 percent in January, the most it has gained to start a year since its 6 percent advance in the same month in 2006, according to Bloomberg data.

Government Sets Aside Rp 156 Tln for Main Armament System
The government will set aside Rp156 trillion in funds to procure the Indonesian military`s main armament system in the 2010-2014 period, a minister said. "The budget allocations for minimum essential forces from 2010 to 2014 will reach Rp156 trillion consisting of Rp99 trillion under the 2010-2014 medium term development plan and Rp57 trillion from on-top allocations based on the directives of the limited cabinet session held on October 4, 2010," Finance Minister Agus Martowardojo said at a working meeting with the House of Representatives` Commission I for defence, information and foreign affairs here on Monday.

Same Indonesian Cities on Top in Business Ease Survey
Jakarta, Yogyakarta, Balikpapan and Bandung continue to top an International Finance Corporation survey on the ease of doing business. The result was contained in "Doing Business in Indonesia 2012," the second city survey by the IFC, which is the investment arm of the Washington-based World Bank. The report analyzed business-related regulations from the standpoint of Indonesian small and medium enterprises.

State Firms to Team Up with Foreign Producers
Local manufacturers will be ready to produce conversion kits starting from April to allow vehicles to use gas under possible technical assistance from Korean and Italian manufacturers with specific expertise, a minister says. Industry Minister M.S. Hidayat said on Monday in Jakarta that he had explored the possibility of cooperating with Korean firm Dymco and Italian firm Landi Renzo during his recent visit to the countries. Korean manufacturers produced around 34,000 units of conversion kits for public vehicles in the country, while Italian manufacturers exported their kits to more than 60 countries worldwide, he said.

Gita Puts Labor Overhaul on Indonesia's Reform Agenda
Indonesia's labor law is a major impediment to its development even as it prepares to enter the trillion-dollar-economy club, Trade Minister Gita Wirjawan said on Tuesday. Despite the government last year announcing a range of measures to promote investment, the minister said it ignored one thing that was significant for investors. "That's the labor law," said Gita, who is also the head of the Investment Coordinating Board (BKPM). He said labor regulations were fundamental to the nation's future prosperity.

Indonesia Looks to Sell Stakes in Four State-Owned Firms Via IPO
The Indonesian government plans to sell stakes in four state-owned companies and one publicly traded bank this year as part of efforts to improve transparency and boost their financial performance, a top government official said on Tuesday. The coordinating minister for economic affairs, Hatta Rajasa, said the government planned to sell as much as a 35 percent stake in Semen Baturaja, a cement maker, through an initial public offering. Three other companies being put up for sale are Industri Telekomunikasi Indonesia (Inti), garment producer Industri Sandang Nusantara and glass manufacturer Industri Gelas. Inti, a telecommunication-equipment producer, makes fiber-optic cables and mobile-phone handsets.

Foreign Ownership in SBN to be Reduced
Bank Indonesia is reducing foreign ownership in state securities (SBN) to maintain stability of the rupiah if foreign capital is withdrawn due to market turbulence, Bank Indonesia's Deputy Governor Ardhayadi, said yesterday. If the foreign portion is too large and there is significant foreign capital outflow, demand in foreign currency will increase and put pressure on the rupiah exchange rate. "What's important is how we manage it," he said. Foreign ownership in SBN once reached 30 percent, or higher than other countries, which ranged about 15 - 20 percent. Ardhayadi did not mention the ideal portion, saying only, "It depends on market balance."

Monday, January 30, 2012
Indonesia's E-Commerce Industry Grows Rapidly
The E-commerce trend is growing rapidly in Indonesia, says the founder and CEO of Multiply.com, Peter Pezaris. Indonesia is a huge potential market for e-commerce development because the country has a large population, positive economic growth and high internet usage, said Pezaris. "Such trends encouraged us to run the daring business seriously in Indonesia," he said last weekend. Multiply.com, a website for social networking, media sharing and global e-commerce has been operating since 2003 and has recorded strong growth in Indonesia. From 18 million Multiply users worldwide, 2.3 million users are located in Indonesia.

Observer: RI to Become Information Technology Main Player
Indonesia has the potential to become a main player in the information technology field soon owing to its huge market, an information technology observer said. "Right now Indonesia is among the top ten destinations of world information technology companies according to the results of IT destination survey thanks to its huge market," Rudy Suryanto of Muhammadiyah University in Yogyakarta (UMY) said here on Sunday. He said information technology has been growing rapidly including mobility-based technology.

RI, Sri Lanka to Engage in 1 Billion Dollars Trade
The Indonesian and Sri Lankan governments agreed to set the trade volume between the two countries until 2015 to 1 billion US dollars. The agreement was reached in a meeting of Indonesian Foreign Minister Marty Natalegawa and his Sri Lankan counterpart GL Peiris in the first meeting of the Indonesian-Sri Lankan Joint Commission in Colombo, Sri Lanka, on Thursday. It was said in a press release in Jakarta that the meeting marked a new era in Indonesia`s bilateral relations with Sri Lanka and hope for a comprehensive development of the cooperation between the two countries. The meeting also marked the 60th anniversary of the diplomatic relations between the two countries.

RI-Malaysia Sign MoU on Maritime Security
The government has been urged to strictly protect traditional Indonesian fishermen catching fish along the Indonesian and Malaysian border, particularly after the MoU on Maritime Issue Management Guideline for Fishermen on the RI-Malaysia Border was signed last Friday. "I think the government must be more firm and smarter in utilizing diplomactic opportunities and maximizing bilateral negotiations that have been built with Malaysia," said the program coordinator of the People's Coalition for Fishery Justice, Abdul Halim, on Sunday.

Islamic Countries Must be Responsive to Changes: President
President Susilo Bambang Yudhoyono has called on Islamic countries to respond to changes in the international political map amid complicated global problems for their own survival. Among the positive responses were by not turning a blind eye to the ongoing changes and by learning from past lessons, the president said in his speech before participants of the Seventh Conference of the Parliamentary Union of the Organization of Islamic Cooperation (PUIC) here on Monday.

Indonesian Hiking in the Bag
For anyone looking for a challenge in the New Year, here's a record to beat: British hiker Daniel Quinn climbed 14 mountains in Indonesia last year, bringing his total number of conquered peaks to 49 since he arrived here three years ago - and that's not including the 21 hills, volcanoes and other peaks he attempted along the way. His motivation? To upload information on Indonesia's lesser-known hiking spots to the Web site Gunung Bagging (gunungbagging.com), started by Quinn and fellow hiker Andy Dean in 2009.

Ambon's Image Restored by American Cruise Ship's Visit
The visit to Ambon by American cruise ship MV Discovery on Sunday, January 29, 2012, would restore the image the Maluku provincial capital in the eyes of international community, Ambon Mayor Richard Louhenapessy said here on Sunday. MV Discovery started its Voyages of Discovery from Manila to Sandakan, Bitung, Ambon, and then on to Darwin, Booby Islands, Cairns, Port Doglas, Brisbane, New Castle, and Sydney. "It is expected that the visit to Ambon by the American cruise ship will restore the image of Ambon city that was hit by communal conflict on September 11, 2011," Louhenapessy said.

UAE Speaker Praises RI as Democratic Muslim Country
United Arab Emirates (UAE) Parliament Speaker Mohammad Ahmad Almour has praised Indonesia as an exemplary OIC (Organization of the Islamic Conference) member country for its consistent adherence to democracy and tolerant Islamic culture. According to the chairman of the Indonesian House of Representatives Inter-Parliamentary Cooperation Body, Hidayat Nurwahid, here Saturday Ahmad Almour praised Indonesia as a predominantly Muslim country that successfully practicing democracy.

Friday, January 27, 2012
RI Government to Issue Four Series of State Islamic Bonds
The government is preparing to issue four series of state Islamic bonds (SBSN) on January 31, 2012 to finance infrastructure projects. "An auction will be done on January 31, 2012 with the settlement on February 2012 and indicative target of Rp1 trillion," the director general of debt management of the ministry of finance, Rahmat Waluyanto, said here on Friday. He said the four series of state sukuk to be issued were PBS-0001 (new issue) with a six-month tenure, PBS-0002 (new issue) with a 10-year tenure and PBS-003 (new issuance) with a 15-year tenure, and IFR-0010 (re-issue) with a 24-year tenure and 10 percent yield.

Indonesia Makes Its Case at Davos
A delegation of local officials and business leaders presented opportunities available in Indonesia to participants of the 2012 World Economic Forum (WEF) in Davos, Switzerland on Friday. Tourism and Creative Economy Minister Mari Elka Pangestu said that the forum was a strategic opportunity to reinforce Indonesia's position on the world's economic map, to promote the country and to attract investors. "The forum will have a positive impact on the country's economic growth this year and in the years to come," she said in a statement sent to The Jakarta Post on Friday.

Indonesian Inflation to Slow Amid Easing Food Costs
Indonesia's inflation rate may slow to around 3.5 percent in January from a year earlier as the increase in food prices remains benign, according to the head of the central bank. That would be the smallest gain in consumer prices since March 2010, when they increased 3.43 percent. Inflation rose 3.79 percent in December. "The harvest season is coming. Food prices are rising, but just a little, not much," Darmin Nasution, governor of Bank Indonesia, said in Jakarta on Friday. Darmin spoke to reporters after Friday prayers at the central bank's compound.

Minister Stresses Need to Develop Nuclear Energy
Research and Technology Minister Gusti Muhammad Hatta said it was now the time for Indonesia to begin developing nuclear energy to fulfill the country`s energy needs and food resources development to improve people`s welfare. "If people are willing and able to accept nuclear energy, we have to begin before we run out of natural resources such as coal and others," said the minister here Friday. According to the minister, it was very difficult to change the public`s stigma on nuclear which making it difficult to develop much cheaper than other energy technologies.

WB Approves "Program for Results" as Financing Instrument
The World Bank has approved a "Program-for-Results" (PFORR), a new financing instrument that ties loans extended to client countries to verified development results, the bank said in a press release. "Financing through the `Program-for-Results` requires greater accountability from the partner countries and in turn will help them continue demonstrating sustainable long-term outcomes after the World Bank`s involvement has ended," World Bank President Robert B Zoellick was quoted as saying in the press release received here Thursday. Zoellick said now was the right time for applying innovative approaches to development, approaches that connect disbursement of funds directly to definitive results or in other words, the funds will begin to be disbursed after the results have been verified.

News Focus: Sail Morotai Right Moment to Promote Investment, Tourism
The much awaited Sail Morotai 2012 is expected to be the right moment for North Maluku Province to promote its investment and rich tourism potentials. Morotai and Halmahera islands in the province are rich in marine and natural resources for both domestic and foreign investors and thus has the potential to be developed into an industrial center in East Indonesia. Therefore, North Maluku Governor Thaib Armaiyn said in Ternate recently that the upcoming international marine event of Sail Morotai 2012 should be a success so as to promote the province`s investment and tourism potentials.

Thursday, January 26, 2012
Private-Equity to Grow as Indonesia's GDP Rises
New investors are pushing into Indonesia's fledgling private-equity market, where firms led by TPG Capital's local partner raised a record $1.16 billion last year even as deal-making fell by more than half. Glenn Yusuf, who ran Indonesia's bank and corporate rescue agency following the Asian financial crisis in 1998, brought in former Lehman Brothers Holdings senior executive Brian O'Connor and private-equity manager Samir Soota to start Falcon House Partners. Mark Thornton moved to Jakarta in January after leaving 3i Group, Britain's largest publicly traded private-equity firm, and Chad Christopher Holm, a former Bank of America banker, set up Yawadwipa Cos.

Indonesian Bond Sale Raises Rp 10.5 Trillion
Indonesia raised Rp 10.5 trillion ($1.2 billion) from selling bonds and bills in Jakarta on Thursday, more than the Rp 7 trillion it had originally sought to sell. The government received Rp 51.3 trillion in bids from investors, the debt management office at the Finance Ministry said in a statement posted on its Web site on Thursday. Indonesia sold Rp 3.2 trillion of 8.25 percent bonds due on June 2032 at a yield of 6.649 percent. It also sold Rp 3.4 trillion of 7 percent bonds due on May 2017 to yield at 6.197 percent and Rp 2.1 trillion of 7 percent notes due in May 2022 to yield at 5.578 percent, according to the statement.

BFI Finance Issues Rp 225B Bonds
Publicly listed consumer financing firm PT BFI Finance Indonesia (BFIN) has issued medium term notes (MTN) to raise Rp 225 billion (US$25.2 million) needed to fund its leasing and consumer financing business, the company says. The bonds were issued in two series: the A series will mature in two years (Rp 25 billion) and the B series will mature in three years (Rp 200 billion), according to a file submitted to the Indonesia Stock Exchange (IDX) on Thursday. BFI Finance did not disclose the coupon rate and timeframe for the bond issuance.

Asian Economic Growth the Center of Attention at Davos
The search for growth will define the global economic landscape in the next decade as corporations shift their focus from the West to the East. In this major shift, emerging Asia with its 7 percent gross domestic product growth will stand out. This was the prevailing point of view by many of the leaders who spoke at various sessions on Wednesday. Although the general mood at Davos this year is relatively cautious, the long-term outlook for the world remains bullish. While developed countries will struggle for growth in the next 10 years, new trends already underway will add $30 trillion in gross domestic product to the global economy.

USAID Helping to Give S Sulawesi Poor Access to Clean Water
The United States Agency for International Development (USAID) is cooperating with the South Sulawesi provincial administration in a program to increase access to clean water and sanitation particularly for poor urban communities in six districts/cities. The signing of cooperation agreements as well as the first launch for the program in Indonesia was conducted by the Director of USAID for Indonesia Glenn Anders with the Governor of South Sulawesi represented by the Assistant III for People`s Welfare Yaksan Hamzah and the head of Takalar, Maros, Enrekang, Jeneponto districts as well as Parepare and Makassar cities here Wednesday.

United States's US$ 55 Million Program Promotes Healthy Mothers and Newborns in Six Indonesian Provinces
The U.S. Embassy announced on Thursday the start of a new $55 million program promoting healthy mothers and newborns in six provinces with the highest mortality rates in Indonesia. The initiative is part of the U.S.-Indonesia Comprehensive Partnership, a commitment by US President Barack Obama and Indonesian President Susilo Bambang Yudhoyono to increase cooperation between the United States and Indonesia. The U.S. Agency for International Development (USAID) Expanding Maternal and Newborn Survival (EMAS) program will work in Banten, Central Java, East Java, Northern Sumatra, South Sulawesi, and West Java. Almost 70 percent of all maternal deaths and 75 percent of newborn deaths occur in Java and Sumatra alone, mostly from preventable causes.

Tuesday, January 24, 2012
JCI Steady as Analyst Flags a Period of Profit-Taking
The benchmark stock index was largely static on Tuesday after a long weekend, as shares enter high valuation territory. The Jakarta Composite Index gained only 8.1 points, or 0.2 percent, to close at 3,994.58. The index rose to its intraday high at 4,038.79 in the morning, before steadily falling to sub-4,000 at the close. Trade volume was relatively low; 2.41 billion shares worth Rp 2.69 trillion ($299 million) were exchanged. Gainers outnumbered decliners, 121 to 98. Foreign investors bought Rp 107 billion more than they sold.

Government Optimistic to Achieve Export Target
Trade Deputy Minister Bayu Krisnamukti is optimistic that this year's export target of US$ 230 will be achieved. Although the main export market, the US and Europe, are slowing, the government is intensively diversifying the export market. The government is now seeking breakthroughs in boosting exports in the Middle East, Central and South America, Africa as well as to some Asian countries.

Ministry to Gather State Plantation Firms Under New Holding Company
The government plans to set up a holding company by the end of this month that will help it streamline the operations of state plantation companies. Fourteen state plantation firms and a commodity trading company with assets of Rp 44 trillion ($4.9 billion) will be under the holding company, Megananda Daryono, a deputy to State Enterprises Minister Dahlan Iskan, said on Tuesday. He said the ministry expected the holding company to start operating by Feb. 1 at the latest.

RI Answers US Appeal Against WTO Kretek Cigarette Ruling
Indonesia has submitted a rejoinder to the United States' appeal against a World Trade Organization (WTO) Panel ruling that requires Washington to stop discriminating against 'kretek' (clove-flavored) cigarettes from Indonesia, a senior trade official said. "We sent our response today in accordance with the WTO`s schedule. In essence, we forwarded our opinion that the Panel`s decision favoring Indonesia was already correct," Director General for International Trade Cooperation Gusmardi Bustomi said here on Monday.

Pertamina to Produce 19,99 Million Kiloliters Pertamax
State oil company PT Pertamina planned to raise its pertamax gasoline production in stages to 19.99 million kiloliters by 2018 along with subsidized premium restriction program starting on April 1, 2012. Pertamina's director Edi Setianto said in Jakarta Tuesday the increased pertamax came from the existing and new plants. "We planned to build two new plants each with a capacity of 300,000 barrels per day," he said.

Indofood Joins the Rush to Tap Bond Market
Indofood Sukses Makmur, the country's biggest noodle producer, plans to sell Rp 2 trillion ($222 million) of bonds this year to help refinance its maturing debt, a company executive said. Werianty Setiawan, corporate secretary of Indofood, said the bond sale will depend on this year's market conditions. The company hired Mandiri Sekuritas, Kim Eng Securities, DBS Vickers Securities Indonesia, Indo Premier Securities and CIMB Securities Indonesia to help arrange the debt sale, Werianty said in a filing sent to the Indonesia Stock Exchange (IDX) on Friday.

Indonesia Meets 2011 Airline Passenger Target: Government
The government says the number of airline passengers in the country stood at 66 million in 2011, a 15-percent increase on 2010's figure, meeting the growth target. The Transportation Ministry's director for air transportation, Djoko Murjatmodjo, said Tuesday that the number of domestic and international travelers totaled 58.84 million and 7.2 million in 2011, respectively.

VP Asks Government Secretaries to Improve Executive Performance
Vice President Boediono on Tuesday asked all secretary generals, chief secretaries and secretaries of ministries and government institutes to improve their performance in implementing the government`s programs and policies. "The key to performance is implementation. You play an important role in improving performance to implement the government`s programs and policies," he said at a meeting with secretary generals, chief secretaries and secretaries of ministries and government institutes about the government`s key programs in 2012.

Thursday, January 19, 2012
JCI Passes 4,000 for a 4-Month High
Stocks rose on Thursday, sending the benchmark index above 4,000 for the first time in more than four months, as foreign investors poured money into the market following the sovereign debt rating upgrade by Moody's. The Jakarta Composite Index rose 22.95 points, or 0.6 percent, to 4,001.07, its highest close since Sept. 8. In three days the measure has gained 2.4 percent. Foreign investors continued to dominate trading on the Indonesia Stock Exchange, accounting for more than 90 percent of total transactions on Thursday.

Foreigners to Invest More on Rating Upgrades, Gita Says
Indonesia expects to see more foreign direct investment in the country this year, helped by credit rating upgrades to investment level from international agencies, Gita Wirjawan, chairman of the Investment Coordinating Board (BKPM), said on Thursday. "We have seen a great improvement in Indonesia's ratings. This can also be seen from the improvement in the performance of investment realization last year," Gita said at the Jakarta International Expo building in Kemayoran, Central Jakarta. He was in Kemayoran to attend a cabinet meeting.

Indonesian Rupiah Trades Near One-Month High on Moody's Upgrade
Indonesia's rupiah traded near its strongest level in a month on optimism a credit-rating upgrade by Moody's Investors Service will boost demand for the nation's assets. Moody's raised the country's foreign- and local-currency ranking by one level to Baa3 yesterday, its lowest investment grade, prompting central bank Deputy Governor Hartadi Sarwono to say that Indonesia may become a haven nation for investors. Global funds bought $66 million more Indonesian shares than they sold yesterday, according to exchange data.

Optimistic Indonesia Tops Consumer Survey
Rosy expectations about the economy have made Indonesian consumers among the most optimistic in emerging economies, a survey from Credit Suisse Research Institute shows. In the survey, published on Thursday, Credit Suisse said that even though Indonesia was among the poorest of the eight countries surveyed, it was the third-most optimistic, after India and Brazil. The other countries in the survey were Russia, China, Turkey, Saudi Arabia and Egypt.

RI Targets Rp 283.5 Trillion Worth of Investment in 2012
Indonesia expects investment to reach Rp283.5 trillion in 2012 or to grow 12.81 percent compared to the figure in 2011 which was recorded at Rp251.3 trillion. "Despite threats of global economic slowdown we remain optimistic investment will continue to grow" chief of National Investment Coordinating Board (BKPM) Gita Wirjawan said here on Thursday. Gita Wirjawan who is also minister of trade said the current global crisis provides an opportunity for Indonesia to attract investors now looking to the emerging markets for their investment.

Government to Initiate Rp 77.93 Trillion Worth of Gas Infrastructure Projects
The government is planning to implement 13 gas infrastructure projects worth Rp77.93 trillion in the 2012 - 2017 period, an energy official said. Qoyum Tjandranegara of the Down Stream Oil and Gas Regulating Agency (BPH Migas) told the House of Representatives (DPR)`s Commission VI on energy affairs here Wednesday that the gas infrastructure projects would enable the reduction of subsidized fuel oil consumption by up to 17.38 million kiloliters by 2017. "The natural gas projects will enable the saving of a huge volume of subsidized fuel oils," he said.

FM: Diversity National Asset
Foreign Minister Marty Natalegawa said Indonesia saw diversity as a national asset rather than a problem. "Indonesia is the most pluralistic country in the world. It is home to more than 300 ethnic groups and has the largest Muslim population in the world. Yet we never see it as a problem but an asset, national character," he said in a press statement issued on Wednesday. Speaking at a conference "Moderate Global Movement" in Kuala Lumpur recently, the minister said Indonesia managed to preserve national unity and cohesion. In addition, it also succeeded in making transformation from an authoritarian to democratic government.

International Batik Center to be Built in Pekalongan
PT Grahamandiri Manajemen Terpadu is managing an international batik center in Pekalongan that will be operational by mid February. International batik center consultant, Robert Antonis, said the batik center was being established to support batik producers nationwide. "We designed it to be like Taman Mini Indonesia Indah (TMII). People won't have to go around Indonesia to learn about the various batik patterns in the country," Robert said during a road show held in Surakarta yesterday. Pekalongan was chosen as the location as it is the oldest batik producer city in Indonesia.

Wednesday, January 18, 2012
Indonesia's Debt Rating Raised to Investment Level by Moody's
Indonesia had its sovereign debt rating raised by Moody's Investors Service to investment level for the first time in 14 years, citing the country's resilience to large external shock. Moody's upgraded the government's foreign and local currency bond ratings to Baa3 from Ba1. Indonesia had lost its investment level rating in 1997, when the financial crisis pushed the country to devalue the rupiah. Moody's also cited the presence of policy buffers and tools that address financial vulnerabilities and a healthier banking system capable of withstanding stress.

Government Hails Moody's Debt Rating Upgrade
Indonesia hails Moody`s decision to raise its debt rating from Ba1 to Baa3 with a stable outlook, a finance ministry official said. "The upgrade this time is extraordinary because it goes directly from stable outlook to investment grade. Usually only after it is in a positive outlook will the credit rating be raised," Rahmat Mulyanto, director general of debt management at the finance ministry, said here on Wednesday. Rahmat said with the higher investment grade status the yields of state securities in rupiah and foreign denominations would go down so that demand for state bonds would increase.

Indonesia Has Commitment to Respect Human Rights
Indonesia has a commitment to respect human rights including the implementation of state defense, Defense Minister Purnomo Yusgiantoro said here on Tuesday night. "All TNI soldiers from cadets to high-ranking officers have been given understanding about respecting human rights," Purnomo said at a gathering with media leaders on Tuesday night. But the defense minister did not denied that human rights violations did occur in the past.

Indonesia a Global Financial 'Safe Haven': Central Bank
Indonesian monetary policy makers welcomed Wednesday's rating upgrade by Moody's Investors Service on its sovereign debt as a vote of confidence in the country's strong economic fundamentals and prudent debt management. A rating upgrade means Southeast Asia's largest economy can reduce financing costs if it wants to tap global investors this year, they said. "It is a vote of confidence by international rating agencies that Indonesia's economy remains resilient amid this global slowdown," Hartadi Sarwono, a Bank Indonesia deputy governor, said in a text message to the Jakarta Globe on Wednesday.

Assessing RI's Foreign Policy in 2012
The Foreign Ministry has explained that Indonesian foreign policy in 2012 would manage and promote change in order to establish common stability, security and prosperity at regional and global levels. What are the capabilities and challenges for Indonesia in conducting its foreign policy in 2012? Indonesia, in my opinion, has the capability as a mediating power sufficient to create and preserve common stability, security and prosperity. Indonesia has a coordinating role, foreign policy competence and can respond to the regional and global challenges. However, Indonesia also has challenges in determining and improving its foreign policy in the regional and global arena, such as in the complexity of domestic situations.

RI to Beat Spain Economically in 2013
State Enterprises Minister Dahlan Iskan said he was optimistic Indonesia would surpass Spain in terms of economic progress in 2013 considering the good national economic conditions at present. "The economy is growing at a rate of 6.5 percent while inflation gas levelled out at 3.9 percent. This is very good," he said at a discussion titled Financial Lecture: Post-Investment Grade at the Ritz Carlton Hotel here on Wednesday.

Tuesday, January 17, 2012
Indonesian Observer Team Will Head to Cambodia-Thai Border
In the wake of recent developments related to the border dispute between Cambodia and Thailand, Foreign Affairs Minister Marty Natalegawa said on Monday that Indonesia would continue the long-delayed plan to send an Indonesian observer team to the border. "I can confirm this thanks to the positive outcome of discussions between the Thai and Cambodian governments," Marty told the Jakarta Globe. "Both countries reaffirmed their wish to have an Indonesian observer team in the 4.6-square kilometer provisional demilitarized zone as a follow up to the International Court of Justice ruling," he added, referring to the disputed area surrounding the centuries-old Preah Vihear temple, to which both countries have claims.

RI's GDP Predicted to Grow Six Percent in 2012
Fitch ratings agency predicts Indonesia`s gross domestic product will grow six percent in 2012. Fitch`s head of financial institutions for South and Southeast Asia Ambreesh Srivastava said at a seminar on "Fitch Credit Briefing on Indonesia" here on Tuesday the GDP projection for Indonesia was the same as that for Vietnam but lower than that for India (7.5 pct), Sri Lanka (8.0 pct), China (8.3 pct), Mongolia (15 pct) and BRIC countries (6.3 pct).

Another Upgrade if Indonesia Can Jump Hurdles: Fitch
Indonesia could achieve another rating upgrade if it can tackle problems with infrastructure, crack down on rampant corruption and prepare measures to mitigate external shocks, says Fitch Ratings, which last month raised the nation's sovereign rating to investment level. "There are some weaknesses that Indonesia needs to address for a further upgrade, such as structure issues and external finances," Philip McNicholas, Fitch Ratings' director for Asia-Pacific sovereigns, said at an event in Jakarta on Tuesday.

Bakrieland, BII Lead Charge as JCI Rises
Indonesian stocks rebounded on Tuesday as regional markets advanced on the back of China's economic growth report. The Jakarta Composite Index rose 45.06 points, or 1.2 percent, to close at 3,954.76. About 5.81 billion shares valued at Rp 4.43 trillion ($487 million) changed hands. Gainers beat decliners by 164 to 76. Foreign investors bought Rp 181 billion more in shares than they sold.

Toyota to Increase Investment in RI by Further Rp 1.3T
Japanese carmaker Toyota Motor Corp (TMC) will add a further Rp 1.3 trillion (US$141 million) to its investment in Indonesia this year, in order to increase its production capacity to 230,000 vehicles by 2013. "TMC has already agreed to add 50,000 vehicles more to the annual production capacity in Indonesia," PT Toyota Astra Motor (TAM) president director Johnny Darmawan said on Tuesday as quoted by Antara news agency. TMC president director Akio Toyoda had previously said in 2011 that the company would increase the production capacity of its manufacturing arm PT Toyota Motor Manufacturing Indonesia (TMMIN) from 110,000 vehicles to 180,000 vehicles per year, with an investment of around Rp 2.8 trillion.

Government Prepares Rp 965 Billion for Fuel Oil Conversion
Jakarta - The Indonesian government has allocated Rp965 billion for the conversion of fuel oil (BBM) to gas fuel (BBG) in view of the control of BBM as of April 1, 2012. "We have allocated Rp965 billion for the gas conversion program and the complementary fund is being prepared," Finance Minister Agus Martowardoyo said at the Presidential Palace in Jakarta Monday. He said the money is enough for the initial stage of the fuel oil conversion program.

Europe, US, Australia Support RI as World's Halal Center
The leaders of the European Union, US and Australian delegations to an International Seminar on Halal Products here said they supported the idea of Indonesia serving as the world`s halal center. "We think Indonesia can a play a very important role in uniting halal standards and rules between exporter and importer countries of halal food throughout the world, and we are looking forward to it," Munim Al Chaman, a representative of the European Union Halal Certification Body, said in Jakarta on Monday.

Friday, January 13, 2012
Foreign Investment in 2012 Predicted at 19.2 Billion US Dollars
Bank Indonesia has estimated that foreign investment (PMA) in 2012 would continue to increase due to the improved investment climate in Indonesia which was marked by the increase in Indonesia`s rating to investment grade. "We estimate it may reach 19.1 - 19.2 billion US dollars, higher than last year`s 18.7 billion US dollars," Deputy Governor of Bank Indonesia Halim Alamsyah said in Jakarta Thursday. In the meantime foreign investment in portfolio like shares and bonds may decline from 5.8 billion US dollars to 3.7 billion US dollars, in relation to the worsening economic condition in Europe and risk factor relating to Indonesia`s condition which has not reached the AAA category.

Food, Beverage Business Expected to Grow 10 Percent in 2012
Indonesia's food and beverage business is expected to grow by 8-10 percent in 2012 or three percentage points faster than last year, an industry spokesman said. "The crisis happening in the United States and Europe has not yet affected the national food and beverage business. I believe this industry will grow even better in the future," Adhi Siswaja Lukman, chairman of the Indonesian Food and Beverage Businessmen`s Association (GAPMMI), said here on Thursday. He said the continuous growth of Indonesia`s population, economy and investment was among factors supporting the growth of the food and beverage business.

Market Diversification Needed to Anticipate European Crisis: VP
Vice President Boediono said market diversification was needed to anticipate the impact of the European crisis on the tourism sector. He said when opening the ASEAN Tourism Forum in Manado, North Sulawesi, on Thursday the European crisis would affect the tourism sector. He said the crisis that had hit European countries and the US had increased the number of unemployed people in those countries. Meanwhile, contributions from European and US tourists to the tourism sector remained high. "The fact is Europe is indeed the biggest tourism market for the ASEAN region but right now Europe is having problems," he said.

Saman Dance Named Best ASEAN Cultural Preservation Effort
The ASEAN Tourism Association (ASEANTA) named on Thursday Aceh's traditional Saman dance as the best ASEAN cultural preservation effort at the 25th ASEANTA Awards for Excellence 2012 in Manado, North Sulawesi. During the event, ASEANTA announced five winners for the nine awards being contested. A photo titled "Traditional Wedding in Minangkabau" by M. Shiddiq of Indonesia was awarded best ASEAN tourism photo, while Beverly Rodrigues of Malaysia won best ASEAN travel article for his article "Follow the Star", which was published by Travel 3Sixty, the inflight magazine of Air Asia.

RI, UNWTO Discuss Community-Based Tourism
Tourism and Creative Economy Minister Mari Elka Pangestu held a talk with the secretary general of the United Nations World Tourism Organization (UNWTO), Talib Rifai, on community-based and sustainable tourism here Thursday. "The meeting was also held to complement our data and information on tourism," the minister said. Mari Elka said when the meeting touched on sustainable tourism development, she conveyed the Indonesian government`s appreciation for UNWTO`s assistance to rehabilitate developmental facilities at Pangandaran (West Java) which were damaged by tsunami in 2006.

Thursday, January 12, 2012
BI Predicts Economy to Grow 6.3-6.7 Pct in 2012
Bank Indonesia predicts the country`s economy would grow between 6.3 and 6.7 percent in 2012 and later rise between 6.4 and 6.8 percent in 2013. "In the first quarter of 2012 the economic growth is expected to reach 6.5 percent supported by investment and household consumption which would remain strong while overall in 2012 the domestic economic growth would reach 6.3 to 6.7 percent and to accelerate to 6.4 o 6.8 percent in 2013," the central bank`s governor Darmin Nasution said here on Thursday after a board of governors meeting.

Foreign Investment in Batam Up to 105 Million US Dollars
A foreign investment of 105 million US dollars had been made in 91 companies in 2011 according to Batam Enterprise Agency (BP Batam). "The manufacturing sector is still the largest contributor attracting 34 million US dollars in 35 foreign companies. In 2010, this sector was also the largest contributor," Director of One Stop Integrated Services and Public Relations of BP Batam, Dwi Djoko Wiwoho, said here on Thursday.

Indonesia Earmarks $436M for More Natural Gas Stations
The government plans to make gas fuel available at 110 new gas stations in Java this year at an estimated cost of Rp 4 trillion ($436 million), in a bid to encourage private car users to convert their fuel to natural gas. "The government is serious about developing gas fuel transportation," said Widjajono Partowidagdo, the deputy energy and mineral resources minister, adding that 19 of the new stations will be built in Jakarta starting in April. "At first we expect [state oil and gas firm] Pertamina to carry out these projects, but later I hope that private gas pump operators will also participate," he said.

ASEAN FMs Call on World to Lift Myanmar Sanctions
ASEAN foreign ministers during a retreat session in Siem Reap, Cambodia, on Wednesday called on the international community to lift its sanctions against Myanmar, Indonesia`s representative at the meeting reported. "After observing the progress that has happened in Myanmar during the past year, ASEAN foreign ministers call on the international community to revoke its sanctions on Myanmar. The foreign ministers also call on the United Nations to extend its cooperation programs to Myanmar not only in the political sector but also in economic and social development," Indonesian Foreign Affairs Minister Marty Natalegawa said in a statement telephoned from Siem Reap on Wednesday.

JCI Stands Still as Global Fears Balance Optimism
The local benchmark stock index was almost static on Thursday as concern about the global economy thwarted optimism about domestic growth. The Jakarta Composite Index fell 0.14 points to close at 3,909.50 on Thursday. "Actually there is a lot of buying pressure in the market, but the external concern still put big pressure to the index," Abidan Saragih, an analyst with Pacific 2000 Securities said, adding that global concerns had caused investors to refrain from buying more. "Investors also fear that once the index reaches a new high, it will plunge just like in August last year," Abidan said.

Ten RI Hotels Win ASEAN Green Award
Ten hotels operating in Indonesia have won ASEAN Green Hotel Recognition Award 2012 for applying environmentally friendly principles to their operations. Indonesian Minister of Tourism and Creative Economy Mari Elka Pangestu presented the award to representatives of the hotels here on Wednesday. The 10 hotels are Matahari Beach Resort & Spa (Bali), Discovery Kartika Plaza Hotel (Bali), Holiday Inn Resort (Batam), Angsana (Bintan), Melia Benoa (Bali), Losari Spa Retreat & Coffee Plantation (Magelang), The St. Regis Bali Resort(Bali), Melia Bali Villa & Spa Resort, The Dharmawangsa Jakarta, Hotel Gran Melia Jakarta.

Indonesian Culture, Illustrated in Jewels
While collecting jewelry is a favorite pastime for many women, Fitria Nahdi's jewelry collection is unlike anything you have seen before, in that it doesn't include the usual selection of standard, sparkly gems. "Sorry if my house looks messy. It's always like this, filled with boxes of jewelry materials," said Fitria, the creative mind behind Nahdi's Jewelry, which she founded in 2005. Fitria makes and sells handcrafted jewelry, but also collects pieces that she displays for cultural purposes.

Wednesday, January 11, 2012
Last Year's Tax Receipts Exceed Target of Rp 878.7 Trillion
Indonesia's tax receipts last year reached Rp872.6 trillion or 99.3 percent of the target of Rp878.7 trillion set in the revised 2011 state budget, the directorate general of taxation said. "Compared to 2010, tax receipts in 2011 increased Rp149.3 trillion or 20.6 percent," Director General of Taxation Fuad Rahmany said in a press conference here on Tuesday. He said the ratio of tax receipts to gross domestic product (tax ratio) last year reached 12.3 percent, up 1 percent compared to 11.3 percent the year before.

New Economic Task Forces Will Shield Nation from Global Slump: Boediono
The government is hopeful about the prospects for Indonesia's economy in 2012, but it is taking precautionary steps in case the global slowdown threatens growth, Vice President Boediono said on Wednesday. "I'm optimistic but we have to be prepared," Boediono said in a meeting with media editors. He said the global situation in 2012 was "not as friendly" as in 2011 and that the world's powerhouses were beginning to see their economies slow.

Finance Minister: Infrastructure a Priority
Minister of Finance Agus Martowardojo said the Remaining Budget (SAL) of 2011 State Budget (APBN) reached Rp80 trillion and Rp30 trillion of the total would be prioritized for infrastructure. "Around 20 percent of Rp30 trillion must be allocated for the educational sector, and the remaining Rp24 trillion will be prioritized for national infrastructure projects," said Agus after attending Coordination Committee Meeting of People`s Business Credits (KUR) in at the Economic Coordination Minister`s office, Jakarta, Tuesday (Jan 10). Agus explained the government is now formulating the remaining budget Rp24 trillion in order to improve national infrastructure, especially in remote areas.

Indonesia Introduces ASEAN as Single Destination
Indonesia in the ongoing ASEAN Tourism Forum 2012 (ATF 2012) in Manado, North Sulawesi, has introduced ASEAN as a "single destination" with the banding of "Southeast Asia Feel The Warmth." "Starting today the brand `Southeast Asia Feel The Warmth` is officially introduced in Indonesia," Minister of Tourism and Creative Economy Mari Elka Pangestu said here on Wednesday. According to Mari, the preparation to make ASEAN a single destination was getting better and therefore free visa among ASEAN countries should be implemented as soon as possible.

RI's Government to Invest Rp 9 Trillion to Create New Rice Fields
The government plans to invest Rp9 trillion to create new rice fields in East Kalimantan to increase production as of 2012, State Enterprises Minister Dahlan Iskan said. "If the atmosphere is not conducive or the investment is disrupted we will leave," he said before East Kalimantan Governor Awang Faroek Ishak, district heads/city mayors and deputy district heads and city mayors of the region here on Tuesday night. He said the investment would be made through PT Pupuk Sriwijaya (Pusri), PT Pertani and PT Sanghyang Seri (SHS).

ASEAN to Further Develop Maritime Cooperation: Marty
ASEAN member countries have agreed to further develop their maritime cooperation in the region, Indonesian Foreign Affairs Minister Marty Natalegawa said on Wednesday. "ASEAN foreign affairs ministers have agreed to Indonesia`s proposal to make use of the ASEAN Maritime Forum as an event to discuss maritime cooperation in the region," Marty said through phone after attending the ASEAN Foreign Affairs Ministers` Retreat Session in Siem Reap, Cambodia, earlier in the day.

Government May Retain Chevron in Siak Block: Official
The government will possibly allow PT Chevron Pacific Indonesia to continue managing the Siak Block in Riau province after the company`s contract on the area expires in 2013, an energy ministry official said. "Chevron will possibly be retained because we cannot just let it go after it has made such great contributions from its Siak Block operations," Budi Handoko, head of the Oil and Gas Upstream Regulatory Agency (BP Migas)`s public and institutional relations division, said here on Tuesday.

Tuesday, January 10, 2012
Investors Flock to Indonesia's 30-Year Bonds
Indonesia sold dollar-denominated 30-year bonds for the first time in four years on Monday, after receiving more than double the amount offered, reflecting growing confidence in the country's portfolio assets as its credit rating was restored to investment grade last month. The $1.75 billion sale is part of a bigger plan to issue a total of $15 billion in global medium-term notes in the coming years, which is higher than the $9 billion that was planned earlier. The 30-year bonds offered 5.25 percent coupon to yield 5.375 percent, the finance ministry said in a statement on Tuesday. It last issued a 30-year bond in 2008.

JCI Continues Strong Start to Year as Foreigners Lead Way
Stocks were up for a second day on Tuesday as foreign investors continued to bank on Indonesia's new land law boosting the economy. The Jakarta Composite Index gained 49.77 points, or 1.3 percent, to close at 3,938.84, extending its 0.5 percent gain on Monday. Gainers beat decliners 164 to 75. More than 6.80 billion shares worth Rp 5.63 trillion ($613.7 million) were traded. "Foreign investors have been net buyers since the beginning of the month. If you look closer, you'll see that the stocks they were buying [on Tuesday] are related to infrastructure development," said Betrand Raynaldi, head researcher at eTrading Securities in Jakarta.

RI's Government to Increase People's Access to Smallholding Credits
Chief Economic Minister Hatta Rajasa said the government would increase the people`s access to Smallholding Business Credit (KUR) scheme in 2012. "The government`s target is to increase the people`s access to the KUR scheme in 2012 by adding 13 regional government banks (BPD), for example," the coordinating minister for economic affairs said here on Tuesday. Hatta made the remarks in a press conference after attending a coordination meeting with Industry Minister MS Hidayat, Cooperative and Small and Medium Enterprise (SME) Minister Syarief Hasan and other relevant state officials.

RI's Plantation Commodity Exports Up $8.4 Bln
Indonesia`s plantation commodity exports are predicted to increase by up to US$8.4 billion to US$35.72 billion last year from US$27.35 billion the year before. "The increase was fueled by higher commodity prices in the international market," Director General of Plantation at the Agriculture Ministry Gamal Nasir said here on Monday. He said at least five commodities were listed as the biggest foreign exchange earners. They were palm oil, cocoa, rubber, coconut and copra, and coffee.

Government to Develop 12 Border Islets in 2012
The government has set itself the target of developing 12 inhabited islets bordering other countries this year, a Maritime Affairs and Fisheries Ministry official said. Indonesia now had 92 outlying islets of which 31 were inhabited, the ministry`s director general of maritime affairs, coastal areas and islets, Sudirman Saad said here on Monday. The islets had large natural resources which served as development asset. However, they lacked human resources to develop the natural resources, he said.

Pertamina Set to Double Production at Makmur Field
Pertamina EP has revealed that it will increase oil production at the Pondok Makmur field at the Tambun block in Bekasi, West Java, from the current 2,000 barrels per day (bpd) to 4,000 bpd in the second semester of this year. Arief Wahidin the general manager for the Pondok Makmur field said the company, an upstream-business unit of state oil and gas firm PT Pertamina, was waiting for the installation of an early-production facility, comprising separator equipment and storing tanks, scheduled to be completed by the end of this month.

Monday, January 9, 2012
Deutsche Bank: RI Economy to Grow by 6%
Despite the looming global economic downturn, Germany-based Deutsche Bank predicts that the Indonesian economy will remain strong this year with an expected growth rate of 6 percent. "We believe that the economy will continue moving forward despite the weakening of the commodity market, which could slow economic growth," Deutsche Bank chief economist Taimur Baig said on Monday as quoted by kompas.com. He said that the economy would also maintain its momentum in most sectors.

Indonesia Launches Dollar Bond, Sets Guidance
Indonesia kicked off a much anticipated US dollar global bond on Monday, its first as an investment grade credit since Fitch promoted its sovereign rating in December to BBB- from a speculative grade of BB+, IFR reported. The size of the issue was indicated as benchmark, which is typically at a minimum of $500 million. Guidance has been set at 5.375 percent to 5.500 percent on a long tenor of 30 years. The deal comes a week after the Philippines saw heavy demand for its $1.5 billion, 5.00 percent, 25-year global bond.

IDX Expecting 5 IPOs in First Quarter
The Indonesia Stock Exchange has forecast at least five private companies to undergo initial public offerings this quarter, which would be more than double the amount during the first quarter last year. "It's usually a few companies in the first quarter," Eddy Sugito, a director on the stock exchange, or IDX, said in Jakarta on Monday. Tiphone Mobile Indonesia, Cipaganti Citra Graha and Surya Esa Perkasa are three companies planning an IPO, he said.

Foreign NGOs to be Banned from Soliciting Domestic Donations
Under a bill on societal organizations currently being deliberated in parliament, foreign non-governmental organizations will not be allowed to solicit financial donations from members of the Indonesian public, a legislator said. "Foreign NGOs that violate the prohibition will face sanctions," Abdul Malik Harmain, chairman of the House of Representatives (DPR)`s Special Committee on the Societal Organizations Bill said here Monday. Under the bill, NGOs in the country could also not receive foreign funding except with permission from the government, he said.

Friday, January 6, 2012
Indonesian Economy Susceptible to Oil Price Hikes
The Indonesian economy is considerably susceptible to world oil price hikes both in the macroeconomic and fiscal sectors, an official said. House of Representatives budgetary board member Ecky Awal Mucharam said here on Friday that the government must be careful in stepping into year 2012. "The external risk not only came from the decreasing value of exports from the weakening European market`s purchasing power, but also from oil price hikes after the escalating tension between Iran and the US," he said.

RI's State Spendings Reach 97.6 Pct of Target
Realization of state spendings in 2011 reached Rp1,289.6 trillion or 97.6 percent of the target of Rp1,320 trillion set in the revised 2011 State Budget, Finance Minister Agus Martowardojo said. "The figure rose Rp247.6 trillion or 23.8 percent compared to Rp1,042 trillion in 2010," he said in a report on economic conditions here on Thursday. The central government`s spending reached Rp878.3 trillion, up 25.9 percent from Rp697.4 trillion the year before, increasing the absorption of the state budget funds as a whole, he said.

RI Foreign Minister Instructed to Communicate with Iraq
President Susilo Bambang Yudhoyono has instructed Foreign Minister Marty Natalegawa to communicate with the Iraqi government about the future of the two countries` bilateral relations following the US military pullout from Iraq. Coordinating Minister for Political, Legal and Security Affairs Djoko Suyanto said the communication was necessary as Indonesia intended to post a diplomatic representative in Iraq. "This has to do with our intention to post an ambassador in Bagdhad," Djoko said here Thursday.

Papua People Enjoyed Rising Welfare in Past 13 Years: BPS
The welfare standards of the people of Papua province have continuously risen during the past 13 years, a regional social statistics official said. The number of Papua`s poor people decreased by 23.51 percentage points in the 1999-2011 period, namely from 54.75 percent in March 1999 to 31.24 percent in September 2011, said Suntoro, head of social statistics at the Central Bureau of Statistics (BPS)`s Papua office. During the first five years since Papua was given special autonomy in 2001, the number of poor people dropped only 0.97 percentage points from 41.80 percent to 40.83 percent, while in the second five-year period (2006-2010) under special autonomy number dropped further by 4.72 percent.

On the Road to Producing a National Car for Indonesia
It's been a long road, but the students at Solo's SMK 2 and SMK 5 have succeeded in building a car that has thrust them into the spotlight and could herald a bright future for the country's automotive industry. On Monday, Solo Mayor Joko Widodo took the 1,500 cc Kiat Esemka Rajawali for a test drive on the streets of the city, much to the delight of the students and teachers involved in the project. SMK 2 headmaster Susanta said the car tested by Joko, more popularly known as Jokowi, was a 105 horsepower, four-cylinder sport utility vehicle. The other model produced is the Bima pickup truck. "The car is powered by a modified Kia engine," he said.

Thursday, January 5, 2012
RI's State Revenues Reach 102.5 Pct of Target
The realization of state revenues and grants in 2011 reached Rp1,199.5 trillion, accounting for 102.5 percent of the target of Rp1,169.9 trillion set under the revised 2011 state budget, Finance Minister Agus Martowardojo said. The figure rose by Rp204.2 trillion or 20.5 percent from Rp995.3 trillion the year before, he said in his report on economic conditions here on Thursday. The increase was fueled among others by tax receipts which reached Rp872.6 trillion or 99.3 percent of the target of Rp878.7 trillion, he said. Compared to 2010, the 2011 tax receipts increased by Rp149.3 trillion or 20.6 percent, he said.

President Calls for Industrial Innovations in Food, Energy Fields
President Susilo Bambang Yudhoyono has called on Indonesian industrialists to take innovative initiatives in the food and energy sectors to answer the challenge of increasing population growth in the country and the world. Speaking at the presentation of government awards to a number of high performers in the industrial field at the State Palace on Thursday, the President said innovative industry, supported by government policy, would be a strategic step to answer the ever increasing demand for food and energy. "I really want to encourage the presence of an innovative industry in the food and energy sectors," the head of state said, adding that innovations to increase agricultural production and cultivation of such crops as rice, sugar cane and corn were much needed.

Indonesian Debt Rating Outlook Brighter in Wake of Land Bill
Legislation aimed at speeding up infrastructure projects will improve Indonesia's chance of a debt-rating upgrade, says Moody's Investors Service, as yields on the country's Islamic bonds near a three-month low. The yield on the sukuk due in 2014 fell the most in five quarters in the three months until Dec. 31, dropping 85 basis points to 2.96 percent. Recent developments "are potential rating triggers, including the passage of the land-acquisition bill" last month, said Christian de Guzman, a Singapore-based assistant vice president at Moody's.

Democratization Process in Myanmar Cannot Be Forced: Marty
It is not possible to force the democratization process in Myanmar and therefore Indonesia will only make phased approaches to help its ASEAN fellow member in this respect, Foreign Affairs Minister Marty Natalegawa said. "The on-going democratization process in Myanmar cannot be forced. It should be allowed to run its natural course, and ,in time, when the Myanmar government is comfortable about letting in foreign monitors to observe its elections, we will be ready," Marty said here on Wednesday. Marty met his Myanmar counterpart U Wunna Maung Lwin on December 28, 2011, in the framework of the second meeting of the Joint Commission for Bilateral Cooperation (JCBC) in Yangon.

Jakarta to be World's Halal Food Center
Jakarta will be a center of the world`s halal food as headquarter of the World Halal Food Council (WHFC) will be officially opened in January 16 2012. "The office, located in the MUI (Indonesian Ulema Council) Building, Central Jakarta, will be inaugurated concurrently with the opening ceremony of the WHFC annual meeting," the Director of MUI Food and Drug Analysis Agency (LPPOM) Lukmanul Hakim said in a release received here, Thursday. Indonesia as a world`s halal food center is supported by some international halal certification agencies such as those in United States, France, Belgium, Italy, Spain, Brazil, Australia, Taiwan and Singapore.

Laskar Pelangi to be Sold in US Next Year, Publisher Says
Critically acclaimed and multiple award-winning Indonesian novel Laskar Pelangi (Rainbow Troops) will be available for purchase in US bookstores next year, its publisher says. Ditta Sekar Cempaka of Bentang Pustaka, the novels original publisher, said the US sales of the book would be handled by Farrar, Straus and Giroux (FSG), a publishing house renowned for publishing Nobel-winning works of literature.

Wednesday, January 4, 2012
JCI Gains for a Second Day on Consumer Confidence
Indonesian stocks rose for a second day on Wednesday amid positive investor sentiment on regional markets, commodity prices and a consumer confidence report. The Jakarta Composite Index added 49.54 points, or 1.3 percent, to close at 3,907.42, extending Tuesday's 1.3 percent gain. About 5.38 billion shares valued at Rp 4.81 trillion ($529 million) changed hands on the Indonesia Stock Exchange (IDX). Gainers beat decliners by 134 to 108. Foreign investors were net buyers of Rp 798 billion in shares.

RI's Foreign Policy Consistently Promoting Positive Change
Indonesia had consistently managed and promoted change for the better in its foreign policy amid global uncertainty in 2011, Foreign Affairs Minister Marty Natalegawa said here on Wednesday. "In facing the uncertain situation at present, diplomacy can make a contribution not only to overcoming various challenges but also to creating opportunities," Marty said in his annual press statement at his office. Marty said Indonesia`s foreign policy in 2011 was always anchored in the national interest, and inspired by the principles of partnership and equality.

RI's CPO Production in 2012 Projected at 25 Million Tons
Indonesian Palm Oil Producers Association (Gapki) predicts Indonesia`s palm oil production in 2012 will reach 25 million tons. Gapki executive director Fadhil Hasan said here on Wednesday the 2012 production projection represented an increase of 5.4 percent or 1.5 million tons from the previous year`s production recorded at 23.5 million tons. "The national palm oil industry will grow this year in terms of production, plantation area, exports and price," he said when presenting the 2012 palm oil industry outlook.

Marty: 2011 Diplomacy Marked by New, More Robust Ties
Reflecting on the year just passed, Foreign Minister Marty Natalegawa on Wednesday noted that Indonesia opened diplomatic relations with nine countries in 2011. The new relations nearly halved the list of 21 countries with which Indonesia had no diplomatic ties when the year began. "The nine countries are Mauritania, El Salvador, San Marino, Montenegro, the Dominican Republic, Niger, Sao Tome and Principe, Antigua and Barbuda, and Bhutan," Marty said in a press statement.

Myanmar Democratization, South China Sea Among RI's Interests in 2012
The democratization process in Myanmar and progress in discussions on the South China Sea Code of Conduct will be among Indonesia`s interests in the foreign policy sector in 2012, a minister said. "The development of democracy and reconciliation in Myanmar and progress in the discussions on the Code of Conduct on the South China Sea are some of the major issues which will be of great interest to Indonesia in 2012," Foreign Affairs Minister Marty Natalegawa said in his annual speech here on Wednesday. The minister said it was beyond doubt that significant progress had been made in the democratization process in Myanmar in 2011 compared to previous years.

RI Overseas Missions Expected to Help Increase Bilateral Trade
Indonesian representative offices abroad are expected to contribute to the improvement of the volume and value of Indonesia`s trade with the countries where they are each located, a legislator said. "Generally, Indonesia`s political diplomacy has shown significant progress during the past few years. However, it is time to focus on reaping more economic benefit from our foreign diplomacy," Mahfud Siddiq, a member of the House of Representatives` Commission I dealing with foreign and security affairs, said here on Wednesday. Mahfud said although the overall value of Indonesia`s trade with other countries in 2011 was reported to have increased, Indonesia was still suffering a deficit in its international trade balance.

Government Will Ratify Migrant Workers Convention Soon
The Indonesian government said it would soon ratify the international convention on protection of the rights of migrant workers and their families. Head of the legal bureau of the manpower and transmigration ministry Sunarno said in Jakarta on Tuesday that the government by way of the manpower and transmigration ministry as well as the foreign ministry have initiated the ratification by preparing an academic text and draft law on the ratification of the convention on migrant workers. "The manpower and transmigration ministry supported the planned ratification. In a limited cabinet session on December 20, 2010, the President said the Indonesian government needs to immediately ratify the convention," Sunarno said.

Government Planning to Promote LGV, CNG as Automotive Fuels
The government is drawing up a plan to promote the use of LGV (Liquid Gas for Vehicles) and CNG (Compressed Natural Gas) in public and private transportation as part of its energy diversification program, a senior minister said. "The government will continue to guarantee the availability of fuel oils but under the 2012 State Budget supplies will be limited to 40 million kiloliters. Therefore, we have to increasingly diversify our energy sources away from oil," Coordinating Minister for Economic Affairs Hatta Rajasa said here Tuesday.

President Appreciates Solo Students' Car-Making Achievement
President Susilo Bambang Yudhoyono has expressed high appreciation for a group of vocational high school students in Solo, Central Java, who used their own ingenuity and resources to assemble a car they have given the brandname "Kiat Esemka". Presidential spokesperson Julian Aldrin Pasha said here Wednesday the president would have no objection if every senior state official acquired the car to use it as their official vehicle. "This (efforts) needs to be appreciated, the president does not forbid state officials to acquire and use the car," he said.

Tuesday, January 3, 2012
Stock Exchange Opens for First Time in 2012
President Susilo Bambang Yudhoyono opened the Indonesia Stock Exchange (IDX) on the first day of the new year. "Today, I announce that the first day of stock trading in 2012 at the [IDX] is officially opened," he said at the IDX in Jakarta. Yudhoyono pressed a touch screen that prompted a siren as the sign that the stock market was officially open, and signed a certificate. In his remarks, the President thanked and congratulated all the IDX board executives for their hard work, as well as to all the market players and stock market regulators. "Thank you to all the economic players who have helped develop a healthy economy together with the government," he said.

JCI Surges as Investors Return From the Holiday
Indonesian stocks rebounded on Tuesday, trailing gains across the region after a spate of manufacturing reports showed economic growth in Asia wasn't slowing. The Jakarta Composite Index added 48.74 points, or 1.3 percent, to close at 3,857.88, its biggest gain since Dec. 16. Gainers beat decliners by 170 to 54, with Rp 3.54 trillion ($389 million) in shares changing hands on the Indonesia Stock Exchange. Almost 5.9 billion shares were traded on Tuesday, more than double the 2.72 billion-share volume from the day before, indicating that international investors had returned from the New Year break. Foreign investors bought Rp 795 billion more than they sold.

Indonesia Leads SEA With 6.5% Expansion In Q4: SBY
President Susilo Bambang Yudhoyono said on Tuesday that the economy may have grown by 6.5 percent in the fourth quarter of 2011, the same pace in the prior three quarters. This fourth-quarter growth pace would be among the highest in Southeast Asia, he said at the State Palace. Other countries in the region, including Singapore, have seen contracting economies as the debt crisis in Europe and slow economic growth in the United States have undermined demand for their goods. In Indonesia, on the other hand, annual economic growth of 6.5 percent in 2011 marked the fastest rate since before the 1997 financial crisis.

Investment Key to Achieving 6.7 Pct Growth
Indonesia sees investment as the key to achieving the 6.7 percent economic growth target set in its 2012 state budget, a minister said. "In 2011 investment grew 8.1 percent. This year it is expected to be higher," Development Planning Minister Armida Alisjahbana who is also chief of the National Development Planning Board (Bappenas) said here on Tuesday. She said achieving the 6.7 percent economic growth target in 2012 would be an uphill task as many other countries had even revised down their economic growth targets for the year in view of the impact of the economic crisis in Europe. "Countries like China, India and Singapore have revised their economic growth targets for 2012," she said at a new year press conference.

Number of RI's Poor Down 0.13 Million
The number of Indonesians living under the poverty line in September 2011 was 29,89 million (12.36 percent of the population) or 0.13 million less than in March, according to the country`s national statistics agency. The decline in the number of poor people in the period March-September 2011 happened in urban as well as rural areas, acting head of the Central Bureau of Statistics (BPS), Suryamin, said here on Monday. Citing the results of a national social-economic survey the bureau had conducted last September, he said the number of poor people in urban areas which in March was recorded at 11.05 million (9.23 percent of the country`s population), had dropped by 0.14 percent to 10.95 million in September.

Manufacturing Industries Expected to Grow 7.1 Pct
Industry Minister MS Hidayat is convinced the country`s non-oil and non-gas manufacturing industries will grow by 7.1 percent in 2012, up from 6.9 percent in 2011. "We are optimistic that the 7.1 percent growth would be achieved if all policies and programs in the industrial fields proceed well this year," the minister said here on Monday. He said that the upward trend in the manufacturing industry growth in 2011 would continue in 2012. National industry will experience growth in 2012 as reflected in the booming of demand for industrial zones, the minister said.

2012 Outlook and Maintaining Sustainability
The year 2012 is here. Is it a time to celebrate or to get ready for another calamity? The United States started this economic implosion in 2008; next was Europe; now India and China have been showing signs of declining growth. Obama has failed Americans with his inability to uplift the economy and increase jobs by over-expanding the government, over-spending and under-performing. 2011 presented a gloomy picture for the western part of the world. Whether 2012 will be a better year for the global economy, no one knows for sure. Most notable economists like Paul Krugman, Robert Reich, Michael Spence, Joseph Stiglitz and Nouriel Roubini agreed that 2012 would offer a 50-50 chance of global and US recession. So, at this point, whether you're an optimist or a pessimist, you have an equal standing.

Eight State Firms Expected to Go Public This Year
Eight state-owned companies are predicted to float their shares to the public this year, State Enterprises Minister Dahlan Iskan said. "We will try to get eight state firms listed on the stock exchange this year," he said here on Tuesday. Three of them had been put on the list of state firms to be privatized this year. They were cement maker PT Semen Baturaja, construction company PT Waskita Karya, and state pawnshop PT Pegadaian, he said. "The Privatization Committee has proposed the three companies to the finance minister," he said.

Discovering Enchanting Selayar, South Sulawesi
Located between the Flores Sea and the Makassar Strait, the regency has diverse and beautiful tourist attractions on offer. Apart from Taka Bonerate National Park, Selayar has a number of gorgeous sites and diving areas. Several islands in the regency also possess captivating natural scenery. Selayar covers an area of 1,357 square kilometers and comprises 132 islands, of which only 29 are inhabited. Belang-belang is one of those islands, where during the full moon various species of turtle come ashore to lay their eggs. "Many people go to the island to catch turtle eggs during the full moon to sell in Bali. We fear the turtles in the area may become extinct because of illegal hunting so we've assigned security guards there," said Selayar Islands Regent Syahrir Wahab.