Wednesday, May 16, 2012
BI Predicts Consumption, Investment to be Drivers of Growth
Bank Indonesia has predicted domestic demand, boosted by strong consumption, and increased investment will be the drivers of the country`s economic growth this year. In its report on economic prospects for 2012, received here on Wednesday, BI said there would be increased consumption in the household and the government sectors, while investments would continue to rise because of the favorable economic climate. In view of that, BI added, Indonesia`s economy would grow 6.3 to 6.7 percent despite the current global economic slowdown.

President Signs Regulation to Draw Up 2013 Work Plan
President Susilo Bambang Yudhoyono has signed a presidential regulation that will serve as a reference for ministries, non-ministerial government agencies and regional governments in drawing up their work plans for 2013. The presidential regulation number 54/2012 will also serve as a basis for the government to draft the 2013 state budget, said the head of the public relations service at the National Development Planning Ministry, Maruhum Batubara, in a press statement issued on Wednesday. Batubara explained that the government will use the 2013 work plan to discuss the general policies and priorities of the state budget with the House of Representatives (DPR), while the ministries and non-ministerial agencies will use the 2013 work plan to discuss their respective work plans and budgets in the parliament.

Regional Government Roles Needed to Curb Inflation: BI
Bank Indonesia (BI - the central bank) Governor Darmin Nasution observed that the regional governments of provinces, districts and municipalities have played a crucial role in curbing inflation and maintaining price stability. The BI governor made this remark at the commencement of the Third National Meeting of the Regional Inflation Control Team (TPID) here on Wednesday. Darmin called attention to the downward trend in inflation over the last five years, including the price index inflation, which dropped from 6 percent in 2007 to 4.05 percent in April 2012.

ASEAN, World Bank Collaborate to Strengthen AEC Monitoring
The Association of Southeast Asian Nations (ASEAN) Secretariat and the East Asia and Pacific Region of the World Bank signed an agreement for the World Bank to provide advisory services to ASEAN to strengthen its capacity to monitor progress towards achieving the ASEAN Economic Community (AEC). The cooperation called the AEC Monitoring and Evaluation Capacity Building Program (AECMEP) is co-financed by the Australian Agency for International Development (AusAID) through the support of the ASEAN Australia Development Cooperation Program Phase II (AADCP II) and the World Bank, the ASEAN Secretariat said in a statement here, Wednesday.

Indonesia Sends 1,966 Peacekeeping Personnel
Indonesia has sent as many as 1,966 personnel to join the UN peacekeeping forces, according to the chief of the Defence Forces` (TNI) Peacekeeping Mission Centre, Brigadier General Imam Edy Mulyono. "The personnel are assigned to various countries, including Lebanon, South Sudan, and Haiti," he said at a seminar on "Indonesia as Rising Middle Power" here on Wednesday. Imam stated 1,790 personnel belonged to the military, while there were 155 police members and 21 military observers. "They are involved in 16 peacekeeping missions under the UN," he added.

US Official Visits RI to Promote Science, Technology Cooperation
US Assistant Secretary of State for Oceans and International Environmental and Scientific Affairs Dr. Kerri-Ann Jones traveled to Indonesia in support of the U.S.-Indonesia Comprehensive Partnership and expanding bilateral science and technology cooperation. She also co-chaired the U.S.-Indonesia Science and Technology First Joint Commission Meeting, the US embassy in Jakarta said in a statement here Wednesday.

Tuesday, May 15, 2012
Indonesia Reaches Out to Its Diaspora
For decades, Indonesians who settled abroad were seen as having turned their backs on their homeland. Now, the government wants to woo these talented citizens to get them to do their part for the country that they and their forefathers hail from, as Indonesia seeks to attract greater foreign investment and raise its image globally. Over three days in July, Jakarta will hold the inaugural Congress of Indonesian Diaspora in Los Angeles to bring overseas Indonesians together, whet their interest in Southeast Asia’s largest economy and get them to help market it.

RI Government to Rebuild 128 Houses of Isolated Tribes
The Government will rebuild 128 houses of isolated tribes in Gara island, Bertam island, and Lingka island, Batam municipality, Riau Islands province, according to an official. "This is one of the rehabilitation programmes of the central government, which involves rebuilding the houses of isolated tribes. Central government offers assistance of 10 million rupiah for a house and the local government also provides funds," Head of Batam Social and Burial Service Kamaruzzaman said here on Tuesday. He stated the local government was collecting documents required for the programme.

VP Expects Economic Growth of 7-8 Percent
Vice President Boediono has expressed hope that the economic growth reaches at least 7 percent to 8 percent so the existing manpower in the country can be absorbed. "The figure of 6.5 percent economic growth is not enough. We want it to stand at 7-8 percent in order to reduce the number of unemployment," the vice president said while opening a national gathering at his office to discuss the improvement of young manpower quality. Boediono noted high economic growth was a fundamental requirement to increase job opportunities.

Indonesian Government to Auction Off Islamic Bonds
The Indonesian government will auction off four series of state Islamic commercial papers (SBSN) or state Islamic bonds with an indicative target sale value of Rp1 trillion ending on May 22, 2012. The General Director of Debt Management of the Ministry of Finance in his written statement released in Jakarta on Monday outlined the nation's obligation to meet the target sale value of Rp1 trillion for the Islamic bonds, to be contributed to the 2012 state budget (APBN). In all, four series of Islamic bonds will be auctioned off: the PBS001 (re-issue), with a return sale value of 4.45 percent and deadline of February 15, 2018; the PB002 (re-issue), with a return sale value of 5.45 percent and deadline of January 15, 2022; the PBS003 (re-issue), with a return sale value of 6.00 percent and deadline of January 15, 2027; and the PBS004 (re-issue) series, with a return sale value of 6.10 percent and deadline of February 15, 2037.

North Korea Interested in Indonesia's Investment Model
North Korea is interested to study the foreign investment model of Indonesia and has sought cooperation in the area, according to Indonesia's foreign minister Marty Natalegawa. He made the statement here on Tuesday at a press conference at the presidential office after accompanying President Susilo Bambang Yudhoyono to a meeting with President of the Presidium of North Korea's Supreme People's Assembly Kim Yong Nam at the Merdeka Palace. Marty said the issue was one of the topics discussed by the two leaders in their second bilateral meeting yet.

Government to Implement 'Fuel-Saving Plans' in June
Energy and Mineral Resources Minister Jero Wacik says the government will announce plans to save energy at the end of May and that these plans will become effective on June 1. Jero said one of these plans included a government push for more gas usage. To do this, Jero said that he has urged fuel station owners to make gas distribution available, adding that the government would do its part by monitoring fuel consumption to ensure sufficient supply. In addition to the government's plans to save fuel, Jero also said that he would try to get the government to increase its fuel quota of 40 million kiloliters by 2-3 million.

NTB Reaps Rp 292B Dividend from NNT
West Nusa Tenggara (NTB) and the regencies of West Sumba and Sumbawa have received a total of Rp 232.7 billion in dividends in 2010 from the American mining company PT Newmont Nusa Tenggara (NNT) in Sumbawa Island, says an executive. Andy Hadianto, president of PT Daerah Maju Bersaing (PT DMB) representing the three administrations in the ownership of a 24 percent stake in the mining company, said in a press conference here on Monday that the dividend had been transferred to the three local administrations according to the number of shares they held in the company.

Monday, May 14, 2012
Momentum of Economic Growth Must Be Maintained: President
President Susilo Bambang Yudhoyono has stated Indonesia must be able to maintain the momentum of its economic growth for the sake of its people. "Our challenge in the future is how to maintain the growth momentum and at the same time reduce the poverty rate in our country," the head of state said in his opening remarks at a meeting with cabinet ministers and members of the National Economic Committee (KEN) here on Monday. "At present, Indonesia's economy is relatively sound, and this momentum must be maintained in order to further boost national economic growth," he added.

Sixteen US Companies Eager to Invest in Batam, Says Official
At least 16 United States companies have expressed interest in investing in the Batam free trade zone and free port in Riau Islands province, according to an official. The companies are Ascendas, Avaya, Clintec International, Covidien, Diageo, DUA Associates, Exterran, FMC Technologies Singapore Pte Ltd, General Atlantic Singapore Fund Management, Knowledge Universe, Laticrete, Nosco, Rajah and Tann, Toll Global Logistics, Hewlet-Packard, and Kraft Foods. "Company representatives visited Batam on Monday to seek business opportunities and see the location," Director of One-Stop Integrated Services and public relations at the Batam Management Board (BP Batam), Dwi Djoko Wiwoho, said here on Monday.

Foreign Interest Eases Balance of Indonesia's Payments Woes
An improved perception of Indonesia’s economy was rewarded by foreign investors flocking into the nation’s portfolio assets, helping the country reduce a balance of payment deficit that has been exacerbated by weakening exports. Bank Indonesia released data on Friday that showed the balance of payment deficit shrank to $1 billion at the end of March from $3.7 billion in December. The March figure was the lowest since Indonesia first booked a deficit in the third quarter last year.

Indonesians Explore Investment Options
Indonesia’s banking customers are exploring investment alternatives like corporate bonds as wealth improves with the nation’s economic growth, executives at DBS Bank said. “Indonesia is going through a phase where customers have increasing ability to understand financial products,” said Peter Soh, a director in the treasury and markets department in DBS Bank in Singapore. He spoke in Singapore, where news organizations including the Jakarta Globe were invited on a press tour on Monday.

USS Blue Ridge Makes Goodwill Visit to Indonesia
The USS Blue Ridge, flagship of the U.S. Navy's Seventh Fleet, arrived in Indonesia May 11 for a goodwill visit and activities with the Indonesian Navy, according to the US Embassy here in its official website. The USS Blue Ridge has been based in the Western Pacific since 1979, and its home port is Yokosuka, Japan. During an arrival ceremony for the ship and its approximately 620-person crew, Capt. Daniel Grieco thanked the Indonesian people for the warm welcome the ship received.

Russian Teams Under RI Coordination: VP Spokesman
Russian teams will have their movements limited in the investigation into a Sukhoi Superjet 100 crash, with the Indonesian government taking control, says vice presidential spokesman Yopie Hidayat. He said on Monday that the Russian delegation comprised three teams: one to help search for and evacuate victims and wreckage, one to help identify the victims and one to help investigate the accident. “All of these teams are under the coordination of relevant institutions of Indonesia,” he told a press conference at the Vice President’s office after Vice President Boediono met representatives of the Russian teams.

KEN Calls for Single Time Zone
The National Economic Committee (KEN) has recommended the government to adopt a single time zone policy in order to improve the country`s economic competitiveness and bureaucratic efficiency. Coordinating Economic Minister Hatta Rajasa on Monday said the government received the recommendation during a meeting at the Tampaksiring Palace. "KEN supports single time zone in Indonesia," he added.

Friday, May 11, 2012
Government Predicts Investment to Give Bigger Contribution in 2013
The government is predicting investment will give bigger contribution to the national economy in 2013 than other sectors such as government expenditure or public consumption. Chief economic minister Hatta Rajasa said to newsmen here on Thursday the main driver of the country`s economic growth would shift. "Right now public consumption is still dominant but in 2013 investment will give bigger contribution than other sectors. So, investment will be the dominant sector," he said.

RI Committed to Its Role in Global Development
Indonesia will continue to play its role in global development and in dealing with the threat of climate change, according to President Susilo Bambang Yudhoyono. "At the global level, Indonesia will continue to play an active role in sustainable development management. The country always participates in every UN Framework on Climate Change Conference," Yudhoyono said at the State Palace here on Thursday. In his address at the launch of the Asia Pacific Human Development Report, issued by the UNDP, the head of state stated that Indonesia would actively participate in the global conference in Brazil in June 2012.

MP3EI Projects Realized According to Plan
Chief Economic Minister Hatta Rajasa said the projects of the Master Plan for Acceleration and Expansion of Economic Development (MP3EI) is currently still being realized according to government`s plan. "Today we are having a plenary working meeting for reports from working groups on connectivity, regulations, energy and mineral resources, and science and technology," Hatta said after the MP3EI coordinating session at the National Development Agency (Bappenas) building in Jakarta Thursday. He said in 2012 there are 39 projects with an investment of Rp195.9 trillion, and 50 projects in the real sector with an investment of Rp294.8 trillion.

RI Preparing 20 Million Hectares for Water Conservation
The Indonesian government has set aside 20 million hectares of its waters as a conservation area, a senior official said. "Now, Indonesia already has 15.4 million hectares of waters as a conservation area," Director General for Coastal Community and Business Development of the Ministry of Maritime and Fisheries Affairs, Ansori Zawawi said here on Friday. He said that the water conservation areas fell under the authorities of the Maritime and Fisheries Ministry and of the local governments.

Yudhoyono Calls for Planned Measures After Export Slowdown
President Susilo Bambang Yudhoyono urged all ministries here on Thursday to implement planned measures in light of the export slowdown caused by uncertain global economic conditions, so that the national economy could be protected. "The world situation is still full of uncertainties, while fear of economic, political, and security crises keeps haunting nations," he said when opening a cabinet meeting. President Yudhoyono stated all parties had long expected what happened in Europe recently, with the premise that the world economy was not yet secure.

News Focus - Sunda Strait Bridge Project to Boost Economic Growth
Indonesia is likely to start construction on its most ambitious project - the 31-km-long Sunda Strait Bridge that will connect the islands of Java and Sumatra - in 2014. The bridge will significantly cut travel time between the islands, which currently takes several hours by ferry. Some 20 million people crossed the strait in 2006, and this figure is predicted to double by 2020. The bridge will be 75 meters high, to enable ships to pass under it, and will be constructed over three small islands in the strait - Prajurit, Ular and Sangiang. It is expected to cost about Rp100 trillion (or over US$11 billion). The bridge will be 60 meters wide and have three lanes for roads as well as railway tracks.

Trade Ministry Issues Regulation to Tighten Mining Exports
Indonesian Trade Minister Gita Wirjawan has issued a regulation to tighten the export of mining products. The regulation signed by the minister on May 7 requires mining companies to obtain a recommendation from the Directorate General of Minerals if they wish to conduct exports. The recommendation, meanwhile, will be given only to companies that have met the three conditions of submitting their working plan on the development of processing and refining plants before 2014, signing integrity pacts and having a clear and clean status.

Putin Conveys Condolences Over Sukhoi Crash: Ambassador
Russian Ambassador to Indonesia Alexander A. Ivanov has said that the nation was “deeply saddened” by the crash of a Russian-made Sukhoi Superjet 100 crash at Mt. Salak in West Java. Ivanov, speaking through an interpreter at Halim Perdanakusuma airport in East Jakarta on Friday, said that Russian President Vladimir Putin called President Susilo Bambang Yudhoyono on Thursday evening to express his condolences. "We want to express our deepest condolences to all our brothers and sisters in Indonesia that have been saddened by the accident,” Ivanov said.

Thursday, May 10, 2012
FDI to Support State Effort to Record Surplus: BI
Bank Indonesia says that Indonesia’s balance of payments will record a surplus in 2012 due to strong foreign direct investment (FDI). “In the first quarter of 2012, capital and financial transactions recorded a US$2.2 billion surplus, mainly supported by FDI and portfolios. However, current accounts suffered a deficit of $2.9 billion in the first quarter of 2012 due to high imports, particularly in fuel and gas, amid slow export growth,” Bank Indonesia spokesman Dody Budi Waluyo said on Thursday.

Indonesia Takes Steps to Reduce Cash as Interest Rate Held
Indonesia took steps to reduce excess funds in the economy while extending a pause in interest-rate cuts as the second-worst performing major currency in Asia and the threat of higher fuel prices push up inflation risks. Bank Indonesia, the central bank, will raise the rates on central bank bills and term deposits starting today to absorb liquidity, it said in Jakarta today, without specifying the levels or tenors of the instruments. BI Governor Darmin Nasution and his board held the reference rate at 5.75 percent, a decision predicted by all 21 economists in a Bloomberg News survey.

BI Leaves Reference Rate Unchanged at 5.75 Percent
Bank Indonesia left the reference rate unchanged since February at 5.75 percent on Thursday. The central bank's executive director of strategic planning and public relations Dody Budi Waluyo said the board of governors made the decision upon conviction inflation would remain under control in the future. He said BI however still saw relatively high inflation expectations and a weakening tendency in the rupiah exchange rate due to global economic uncertainty.

89 Projects Launched in Q1: Hatta
Coordinating Economic Minister Hatta Rajasa says that 89 development projects have been launched as of March 2012. "As many as 39 of them are infrastructure projects, while 50 are real sector projects," Hatta told reporters at the National Planning Agency (Bappenas) in Jakarta on Thursday. "The infrastructure projects are worth Rp 195.94 trillion (US$21.16 billion) and the sector real projects are worth Rp 294.79 trillion. So, the total projects are worth Rp 490.73 trillion," he added.

Indonesian SOE Jasa Marga Raises $2.9b in Stock Sale For Toll Road Projects
Indonesia's state-owned toll road operator Jasa Marga secured nearly Rp 27 billion ($2.9 million) in April from treasury stock sales, an official announced on Wednesday. The toll road operator hopes to raise Rp 42 billion from the sale of 12 million treasury stocks to help finance the development of nine new toll roads in Java and Bali, finance director Reynaldi Hermansjah said. The new toll roads carry a price tag of Rp 25 trillion, a total the company hopes to offset with both this treasury stock sale and the previous sale of Rp 187.68 billion of shares in the privately-held toll road operator Citra Marga Nusaphala Persada (CMNP).

Government Buildings to Reduce Power Use Effective 1 June
The electricity saving program to be implemented in government buildings is targeted to save 20 percent on the electricity bill. “Saving will be calculated from average use in the last 6 months,” explained Jarman, Director General Electricity of Ministry of Energy and Mineral Resources yesterday. All buildings belonging to the government and government-owned enterprises both in the capital and regions will be subject to the electricity saving policy to be enforced on June 1.

UNESCO Declares Wakatobi World Biosphere Reserve
The United Nations Educational, Scientific and Cultural Organization (UNESCO) has declared the Wakatobi Marine National Park of Southeast Sulawesi province as a world biosphere reserve area unconditionally. "The UNESCO has declared the Wakatobi national park, which covers an area of 1.3 million hectares, to be a world biosphere reserve, along with 12 other biosphere reserves in the world," Wakatobi Regent Hugua said here on Thursday. According to Hugua, the decision to make Wakatobi a world biosphere reserve was reached at the 18th meeting of International Advisory Committee for UNESCO MAB Biosphere Reserve Program in Paris during April 2-4, 2012.

RI Proposes Three Pragmatic Steps for Palestine
Foreign Affairs Minister Marty Natalegawa at a ministerial-level meeting of the Non-Aligned Movement (NAM) in Sharm El-Sheikh, Egypt, on Wednesday proposed three practical steps that could help Palestine achieve independence. "Indonesia's proposal is aimed at finding a just and comprehensive solution to the Palestinian issue," said Marty, who was accompanied by Indonesian Ambassador to Egypt Nurfaizi Suwandi, before representatives from 120 NAM member countries. "First, we must continue to pave the way for the eventual membership of Palestine in the UN," he noted.

Wednesday, May 9, 2012
Foreign Investors Eye Indonesia’s Booming Banks
Indonesia’s banking sector is becoming a magnet for foreign firms willing to accept an uncertain investment environment in return for booming growth and an untapped market of tens of millions. Major players are watching with interest the outcome of DBS Group of Singapore’s trail-blazing $7.3 billion deal struck on April 2 to acquire Bank Danamon Indonesia, the nation’s fifth-largest bank. Underlining the uncertainties, the central bank declined to approve the deal until it establishes new rules on foreign ownership, which currently allow local and foreign investors to own up to 99 percent of Indonesian banks.

Presidential Regulation on Land Acquisition to Boost Infrastructure Projects
Coordinating Minister for Economic Affairs Hatta Rajasa announced that a presidential regulation on land acquisition projects will be issued in late May to boost infrastructure development. "The infrastructure development could be almost 1.5 times that in 2011. And with the projects planned until the end of 2012, it could be double - a sharp increase," he said here on Wednesday. The presidential regulation is needed for implementing Law No. 2/2011 on land acquisition, which was approved by the House of Representatives (DPR) in December 2011 to address the land provision problems that have become a stumbling block for infrastructure development in the country so far.

RI, EU to Hold Workshop on Post-Conflict Areas
Indonesia and European Union will hold a national workshop on the development of post-conflict backward areas in the Central Sulawesi provincial capital of Palu on May 15, an official said. "The workshop is cooperation between Indonesia and European Union in developing backward areas. European Union`s assistance to Indonesia has so far focused on sectoral development. The workshop will serve as a pioneer of development efforts in post-conflict areas," the deputy for special region development to the minister for development of disadvantaged regions, Suprayoga Hadi said here on Tuesday. At the workshop, a number of non-governmental organization activists, regional government officials, social figures and stakeholders would speak of post-conflict conditions in the areas, he said.

President Obama Celebrates 60 Years of Fulbright Program in Indonesia
President Barack Obama celebrated 60 years of the Fulbright program in Indonesia and the 20th anniversary of the American Indonesian Exchange Foundation. "I congratulate the Indonesian government, the members of the American Indonesian Exchange Foundation, and the many Fulbright alumni whose commitment has fostered cooperation between our two countries," President Obama said in a statement posted on the US embassy's official website here Wednesday. He said Senator J. William Fulbright recognized that, after World War II, educational exchanges would serve as a powerful tool for promoting peace and friendship among nations. His vision became the Fulbright Program, which has lived up to this ambitious aspiration to forge strong bonds between the people of the United States and people in countries around the world.

Government to Grant Incentives for Local Hybrid Car Producers
The government plans to provide incentives for automakers who produce hybrid cars domestically. “The government will push for hybrid cars to be produced domestically by giving tax incentives,” Coordinating Economic Minister Hatta Rajasa told reporters here Wednesday. Separately, Finance Minister Agus Martowardojo said that other than developing hybrid cars, the government had to also accelerate the development of gas-based and low-cost fuel technology domestically.

News Focus - Government Starts Realising Promises to Workers
On the eve of May 1, when workers all over the world, including in Indonesia, celebrated May Day or International Labour Day, President Susilo Bambang Yudhoyono announced "special gifts" for Indonesian workers. "This year is very special for Indonesian workers because the president has issued a number of strategic decrees to promote their living standard," said Daniel Sparingga, the president`s special aide for political communication, in a press statement on April 30.

Tuesday, May 8, 2012
RI Plays Strategic Role in Developing Global Sharia Finance
Indonesia plays an increasingly strategic role in developing global sharia finance industry, a lawmaker said. "The Indonesian sharia finance industry is growing rapidly. We are now serving as a barometer (for other countries)," member of the House Commission XI Kemal Azis Stamboel said here Monday. He said the Indonesian sharia banking industry expanded rapidly in the past five years, with their assets growing by an average of 40 percent per year.

RI's Sharia Banking Industry Grows 40 Pct
The Indonesian sharia banking industry grew by 40.2 percent in the past five years, well above the growth of the conventional banking industry that reached 16.7 percent over the same period, according to Bank Indonesia. With such high growth, the sharia banking industry`s contribution to the national banking industry was projected to increase from the current 4.1 percent to 15-20 percent in the next 10 years, said Halim Alamsyah, the central bank`s deputy governor, in his opening address to an international seminar on sharia finance here on Monday.

Indonesia Government Hopes for Greater Economic Growth
The government hopes that the economy will continue to grow in order to meet the growth target set at 6.5 percent in the 2012 budget, said Chief Economic Minister Hatta Rajasa. "I myself am not satisfied (with the present achievement), as I hope it will reach 6.5 percent. However, acceleration usually occurs in the next quarter," he stated here on Tuesday in response to the National Statistics Agency's report of first-quarter growth of only 6.3 percent issued on Monday. According to Hatta, the country's economy has grown only 6.3 percent because of the overall weakening of the world economy and the impact of the European economic crisis.

Indonesia's Economic Growth Still Relies on Natural Resources: Vice President
Indonesia's economic growth is still dependent on the country's natural resources, which may deplete, said Vice President Boediono. "Progress in our economy so far does not come from innovations," he remarked while speaking at an event held to mark the 12th World Intellectual Property Rights Day here on Tuesday. Boediono, who is also an economist, noted that Indonesia still relied on natural resources for its economic progress and growth, while history made clear that nations achieve sustainable growth through innovation and creativity.

Six Indonesian Students Win Medals in US Science Olympiad
Six Indonesian students won silver and bronze medals in the International Sustainable World Energy, Engineering and Environment Project Olympiad (I-SWEEP) 2012 held in Houston, Texas, in the United States from May 3 to May 6, 2012. The students are Aristyo Rizka Darmawan and Fuad Makarim Imran from SMA (High School) Kharisma Bangsa in Banten; Dwi Astuti and Tisa Mahdiansari from SMA Al-Kautsar in Lampung (Sumatra); and Leonardo Ardianto and Christian Edwin Pranata from SMA Santa Laurensia in Banten, announced Houston's Indonesian consulate general in a press statement received here on Tuesday.

Indonesia Central Bank to Hold Rate in May
Indonesia’s central bank is expected to hold the policy rate when it meets on Thursday after economic growth was the slowest in six quarters, a Reuters poll has found. All 16 economists polled by Reuters forecast the benchmark rate would be kept at a record low of 5.75 percent for a third straight month this Thursday. Four respondents expected Bank Indonesia to tweak the reserve requirements for commercial banks in May or June. Banks currently have to maintain 8 percent of their total deposits as cash reserves and 2.5 percent as securities or bonds. Reserve requirements on dollar deposits are also at 8 percent.

Government to Spur Domestic Trade to Offset Export Decline
The government will boost domestic trade by optimising inter-island trade to offset export decline, said Deputy Minister of Trade Bayu Krisnamurthi. Domestic consumption constitutes 60 percent of the national gross domestic product (GDP), which amounts to Rp8,600 trillion. "This is a good opportunity for offsetting the decline in Indonesia`s exports to the global markets," the deputy minister stated at a press conference here on Tuesday.

Indonesia, North Korea Sign Media Swap Deal Ahead of Top Official's Visit
Indonesia inked a media deal on Tuesday to swap news, journalists and television shows with North Korea, a nation with one of the worst press freedom records in the world. The deal, signed ahead of top North Korean official Kim Yong Nam's visit this weekend, will facilitate an exchange of information between the two countries, which already share close diplomatic ties, said P.L.E. Priatna, director of information and media at Indonesia’s Foreign Ministry in a press release.

Monday, May 7, 2012
Indonesia's Economy Grows 6.3 Pct in Q1
Indonesia's economy has grown 6.3 percent year-on-year (YOY) in the first quarter of this year, according to the National Statistics Agency (BPS). "Compared to the fourth quarter of 2011, in terms of GDP, it has grown 1.4 percent," BPS chief Suryamin said here on Monday. He stated that GDP growth based on current prices reached Rp1,972.4 trillion, however, based on a constant price of 2,000, it was Rp632.8 trillion. Without oil and gas, the GDP in the first quarter of 2012 increased by 1.5 percent from the fourth quarter of 2011. And compared to the corresponding period of the previous year (YOY), it grew 6.7 percent.

RI Files Official Response to EPA Over Oil Palm Ruling
Trade Minister Gita Wirjawan said he has officially responded to the US Environmental Protection Agency (EPA)`s analysis of palm oil used as a feedstock in bio-fuel production. "In its analysis, the EPA has ignored the Indonesian government`s commitment to protecting the environment and reducing greenhouse gas emissions," the minister said in the official response, a copy of which was made available to ANTARA on Sunday. At the Copenhagen meeting held in 2009, President Susilo Bambang Yudhoyono stated his commitment to reducing greenhouse gas emissions by 26 percent in 2020 and set himself the target of cutting greenhouse gas emissions by 41 percent through international cooperation, the minister said.

Bank Credit Grows 26 Percent: BI
Bank credit grew 26 percent in April year-on-year, beating earlier estimates of 23-24 percent. Central bank deputy governor Halim Alamsyah said here on Monday that such growth indicated that the domestic economy was doing well. "The growth is driven more by credits for working capital and investment, while consumption credits are slowing. This is healthy. It shows that domestic economy is quite strong," he stated. Halim said that if the economy remained stable, bank credits would likely continue to grow up to 24-25 percent until the end of the year, which would achieve the banks business objectives for 2012.

Energy Programme Expected to Save Six Million Kilolitres of Subsidised Fuel
Energy and Mineral Resource Minister Jero Wacik has targeted to save up to six million kilolitres of subsidised fuel through the new five-point energy policy. The energy-saving policy is necessary to limit the subsidised fuel quota to around 40-42 million kilolitres, stated the minister at the presidential palace complex here on Monday. "If there is no saving effort, my estimation is that it could reach 47 million kiloliters," he pointed out. The five-point energy-saving policy will be formulated in a decree issued by the minister in May this year.

Indonesia’s Rupiah Gains on Suspected Intervention; Bonds Fall
Indonesia’s rupiah rose, halting a five-day slide, on speculation the central bank is supporting the currency to help stem imported inflation. Bonds fell. The currency sank to a 23-month low on May 4 as Bank Indonesia said it would remain in the market to keep the exchange rate stable. The central bank participated in the foreign-exchange and debt markets to stabilize the rupiah, it said last month. Growth in Southeast Asia’s largest economy cooled last quarter as Europe’s debt crisis dented exports.

Friday, May 4, 2012
Rupiah Rebounds From June 2010 Low on Intervention Speculation
Indonesia’s rupiah rebounded from the lowest level in almost 23 months, paring a weekly loss, on speculation the central bank intervened to support the currency to stem imported inflation — bonds also declined. Consumer prices increased 4.5 percent last month, the most since September, official data shows. Bank Indonesia has participated in the foreign-exchange and debt markets to stabilize the currency, according to an April 12 statement on its Web site. The monetary authority will review borrowing costs next week after leaving its reference rate at 5.75 percent for the last two months. “Bank Indonesia continues to monitor the rupiah,” said Nurul Eti Nurbaeti, the head of treasury research at PT Bank Negara Indonesia in Jakarta. “A strengthening currency would help damp inflation.”

President Calls for Investment Opportunity Follow-Up
President Susilo Bambang Yudhoyono has called on his ministers and all parties to follow up investment opportunities. "In the past few years we have had a lot of investment opportunities, but we have also faced some problems and handicaps for the opportunities to materialize," the president remarked as he commenced a limited cabinet meeting at his office on Thursday afternoon. The head of state admitted that though there were many investment opportunities, some of them had yet to be followed up.

More Jumping on Indonesia's Bond Wagon
Indonesia’s new investment grade and low borrowing costs have prompted more companies to finance their business plans with funds from the debt market, with two companies planning Rp 2 trillion bond sales next month. The country’s corporate bonds rose 16 percent to Rp 8.25 trillion ($899 million) in the first quarter from Rp 7.1 trillion in the same period a year earlier, data from the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) showed. In the first quarter this year, Astra Sedaya Finance sold Rp 5 trillion in bonds while Bank Bukopin sold Rp 1.5 trillion and Japfa Comfeed sold Rp 250 billion. Last year, Astra Sedaya Finance sold Rp 2.15 trillion, Bank Jabar sold Rp 2 trillion and Wahana Ottomitra Multiartha sold Rp 1.4 trillion.

Government to Impose 20% Tax Rate on Exempted Miners
Indonesia will impose an average tax rate of 20 percent on exports of 14 unprocessed ores by mining companies that are exempted from an export ban that begins on Sunday, Jero Wacik, head of the Energy and Mineral Resources Ministry, told reporters in Jakarta on Thursday. The government also will ban mining companies from exporting unprocessed ore starting on Sunday, Jero said. Earlier on Thursday, Edi Prasodjo, a director of coal at the Energy Ministry, had said at a conference that “miners will still be allowed to export after meeting some requirements, including obtaining permits.”

Indonesia’s Land Acquisition Law Expected to Take Effect This Month
A new regulation that will make it easier for the Indonesian government to acquire land for infrastructure projects is expected to be issued by President Susilo Bambang Yudhoyono by the end of the month. The law will guarantee that land set aside for infrastructure projects will remain available for acquisition by developers. It will also aim to rein-in surges in land prices that often crippled the country's larger developments and to restrict the sale of needed land to third parties. “The presidential regulation draft is complete. We’ll finalize it next week, to make sure it is issued in May,” the coordinating minister for the economy, Hatta Rajasa, said after a Thursday Cabinet meeting on economic issues at the Presidential Palace in Jakarta.

Pertamina Raises $2.5 Billion from Global Bond Sales
State oil and gas company Pertamina said it has raised US$2.5 billion from the sale of 10 and 30 year global bonds. The bonds were oversubscribed more than 3.7 times, Pertamina President Director Karen Agustiawan said in a press statement issued on Thursday night. "This indicates investors` trust in Pertamina," she said. The 10 year bonds of US$1.25 billion due on May 2022 were issued at a coupon of 4.875 percent, at a price of 99.414 and a yield of 4.95 percent.

Government to Allocate Special Funds for Low-Energy Vehicle Development
President Susilo Bambang Yudhoyono said the government would allocate special funds for research and development of low-energy vehicles. "We will continue to intensify research and development activities for special purposes, including allocating funds for development of environmentally friendly cars, be they electric cars or green cars," the President said when opening a limited cabinet meeting in the economic field, at the presidential office here Thursday. He said that in the past few years there had been a significant increase in the number of motorcycles and cars.

Trade Ministry to Rule on Mineral Exports
The Trade Ministry is set to immediately launch a new regulation on mineral export arrangements, an official says. The new regulation would cover technical details on the export tax of minerals, quotas and reference prices, Trade Ministry director-general for foreign trade Deddy Saleh said on Friday. “We are in an in-depth discussion about the regulation,” he told reporters at his office in Jakarta.

First Floating LNG Terminal to Start Delivering Gas
Indonesia’s first floating storage and re-gasification unit (FSRU) is expected to commence gas delivery to state electricity company PT Perusahaan Listrik Negara’s (PLN) Muara Karang power plant on May 15. The Energy and Mineral Resources Ministry’s director general for oil and gas, Evita Herawati Legowo, reported that the vessel that transported liquefied natural gas (LNG) from the Bontang plant in East Kalimantan would on Friday begin pumping LNG to the FSRU in Jakarta Bay, West Java. “Today we’ll begin the ship-to-ship LNG transfer. The sub-sea pipeline has also been completed and we hope PLN can receive the first gas delivery on May 15,” she told reporters on the FSRU on Friday.

Thursday, May 3, 2012
IFC to Invest $200 Million in RI Projects
The World Bank Group’s International Finance Corporation (IFC) is allocating about US$200 million of investment in Indonesia’s infrastructure projects this fiscal year, one of the agency’s officials said. “We are committed to investing in infrastructure because the lack of infrastructure remains Indonesia’s greatest challenge to boosting its economic growth,” IFC’s communications officer, Novita Patricia Wund, said in Jakarta on Wednesday. Infrastructure bottlenecks rank high among the constraints hindering the local economy from delivering its maximum potential.

RI Expects 30% Growth of Tourists from Middle East
Indonesia has sets a target of 130,000 tourists visiting from the Middle East this year, up 30 percent from 2011, Deputy Tourism and Creative Economy Minister Sapta Nirwandar said Thursday. “The Middle East is a promising market for Indonesia because every tourist from this region always spends at least two weeks here,” Sapta told The Jakarta Post from Dubai, where he is attending the 2012 Arabian Travel Market. He said that Indonesia saw a 19.75 percent increase in tourists from the region over 2011, from 77,890 to 93,273.

RI Becomes World's Biggest Sustainable Palm Oil Producer
Indonesia has become the world’s biggest palm oil producer on the back of higher production of locally certified sustainable palm oil (CSPO), an international multi-stakeholder certification body says. The top place is also attributable to the rising number of local palm oil producers joining in the sustainable certification scheme, says the Roundtable on Sustainable Palm Oil (RSPO) Indonesia. As of the first quarter of this year, local growers generated around 2.71 million tons of CSPO, overtaking Malaysia — traditionally the largest CSPO producer — which generated 2.69 million tons, RSPO Indonesia director, Desi Kusumadewi, said on Thursday.

Government to Conduct Bureaucratic Restructuring at Central Level
The Deputy Minister for Administrative Reform and Empowerment Eko Prasojo stated that his office intended to restructure and reform ministries and state institutions at the central level. "At the initial stage it will be done at central levels, and we hope it will spread to regional levels," he announced after attending a discussion on bureaucratic reform here on Wednesday. The deputy minister remarked that a team comprising members from the academic field and state administration experts had been set up to prepare the reform plans.

Indonesia Ban on Unprocessed-Metal Exports Effective May 6
Indonesia will ban exports of 14 raw minerals effective May 6, with an exception for miners that plan to build local processing facilities. Those miners will be assessed an average tax of 20 percent on ore shipments. The regulation applies to copper, lead, nickel, gold, silver, zinc, chromium, bauxite, manganese, molybdenum, platinum, antimony, iron ore and sand iron, Energy and Mineral Resources Minister Jero Wacik said at a press briefing in Jakarta today. The largest nickel-ore and bauxite supplier to China announced the prohibition in February, two years ahead of schedule. The new rules apply to holders of mining business licenses issued after 2009. Companies with a so-called contract of work, including Phoenix-based Freeport-McMoRan Copper & Gold and Newmont Mining, will be allowed to ship ores until 2014.

Government Signs 2nd Amendment on Newmont Deal
Along with Nusa Tenggara Partnership BV, the state investment agency (PIP) has signed the second amendment on PT Newmont Nusa Tenggara's (NNT) 7 percent share purchase deal. “The signing took place on Wednesday, May 2, 2012. It was conducted between PIP head Soritaon Siregar and Blake Rhodes along with Toru Tokuhisa from Nusa Tenggara Partnership BV at the PIP office at Graha Mandiri on Jl. Imam Bonjol 61, Jakarta,” the Finance Ministry’s public relations officer Syamsul Maulana said in a statement on Thursday. The second amendment was conducted under the consideration that so far, the requirements needed in the first amendment, signed on Nov 3, 2011, had not been fulfilled.

Eleven Mining Concessionaires Now Operational
Head of operations of the Tabalong mining agency in South Kalimantan, Norzain Yani said that only 11 of the 24 mining operation concessionaires are producing. "The other 24 are still in an exploratory stage," Norzain said in Tanjung, capital of Tabalong, on Thursday. The operational coal mines in Bintang Ara, Muara Uya, Haruai, Murung Pudak and Upau subdistricts, are PT Suryaraya Pusaka, CV Cakra Persada Mandiri, PT Bangun Nusantara Jaya Makmur, PT Tabalong Makmur, PT Bara Meratus, PT Tamiang Jaya, PT Charisma Barito Coal, PT Surya Cahaya Cemerlang, PT Suryaraya Permata Khatulistiwa, PT Bumi Nusantara Resources and Tabalong Prima Resources.

Wednesday, May 2, 2012
Strong US Data Drives Big Day for Southeast Asian Markets
Most Southeast Asian stock markets rose on Wednesday, with benchmark indexes in the Philippines and Indonesia reaching all-time highs, as strong US economic data boosted investor appetite for risky assets, particularly the region's energy and commodities stocks. Jakarta's Composite Index ended at 4,219.3, surpassing its previous record reached on April 3, while the Philippine index finished at 5,228.84.

Indonesia Chases China As Middle-Class Consumption Soars
In May 1998, Indonesia was in turmoil. During the previous 10 months, the currency had plunged 80 percent in value and food prices had soared 200 percent. Rioters were marauding through Jakarta, torching businesses owned by wealthier ethnic Chinese, who were fleeing for their lives. Safely ensconced in Hong Kong, where he was on vacation, an Indonesian-Chinese retailer named Djoko Susanto could have sat tight. Instead, he flew home to defend his four supermarkets from the mob. As he transited Singapore, where planes were arriving from Indonesia full and returning empty, the airline’s crew stared at him in disbelief.

Yudhoyono to Give Keynote Address at Shangri-La Dialogue
Indonesian President Susilo Bambang Yudhoyono will give the keynote address at this year’s Shangri-La Dialogue, the International Institute of Strategic Studies (IISS) announced yesterday. It will mark his first attendance at the Asia Security Summit, which gathers defense ministers and senior military officials from Asia-Pacific and key outside powers including the United States to discuss defense and security matters. His speech is expected to address significant issues for security in the Asia-Pacific region.

Education Key to Future of 'Golden Generation'
In about two decades, Indonesia will hit the demographic jackpot, according to Education and Culture Minister Muhammad Nuh. In 2010, about 46 million Indonesians were aged between zero and 9 years — the largest slice of the country’s demographic pie. The next largest chunk comprised young people between the ages of 10 and 19, with about 44 million. The older the age group, the smaller the proportion of the population. The education minister sees all this as a bonus for Indonesia.

Parliament to Deliberate Bill on Ratification of Nagoya Protocol
Environmental Affairs Minister Balthasar Kambuaya stated that his ministry is currently processing a bill on the ratification of the Nagoya Protocol, which the Parliament is expected to deliberate next month. The ratification of the Nagoya Protocol is crucial for Indonesia as one of the world's mega-biodiversity nations, said the minister here on Wednesday. Indonesia signed the protocol a year after it was adopted in 2010.

Indonesia to Review Gas Sales Contract with Japan
The Indonesian government will review its gas sales contract with Japan in order to meet domestic needs particularly from the industrial sector, a minister said. "We continue to respect the existing contract with Japan. Only after the contract expires will the government assess domestic gas supplies," Industry Minister MS Hidayat said here Wednesday. He said the government would prioritize gas supplies to the domestic industry.

Tuesday, May 1, 2012
RI's March 2012 Exports Grow 10 Pct
Indonesia`s exports in March reached US$17.27 billion, a 10.01 percent increase compared to US$15.69 billion in February, the Central Statistics Agency (BPS) said. "The March 2012 exports consisted of oil and gas exports worth US$3.5 billion and non-oil/non-gas exports valued at US$13.76 billion," BPS Chief Suryamin said here Tuesday. The exports brought the total exports in the first quarter of 2012 to US$48.53 billion, up 6.93 percent from US$45.39 billion in the same period last year, he said.

Earnings Lift Indonesia's JCI to One-Month High
Indonesia’s benchmark stock index rose for a second day to its highest level in a month on Tuesday, supported by positive earnings reports. The Jakarta Composite Index added 15.25 points, or 0.4 percent to close at 4,195.98, extending Monday’s 0.4 percent gain. The measure closed at its highest since April 3, when it was at 4,215.44. About 4.36 billion of shares, worth Rp 4.33 trillion ($471 million), changed hands on the Indonesia Stock Exchange. Decliners outpaced gainers, 132 to 113.

RI Government to Sell Bonds Worth Rp 6 Trillion on Wednesday
The Indonesian government is to sell rupiah-denominated bonds of Rp6 trillion in an auction on Wednesday to meet part of financing target in the 2012 state budget, the finance ministry said. The bonds put up for the auction will be series SPN12130502 which is new issue, and series FR0060, FR0061 and FR0058 which are the reopening of the existing issues, according to a statement from the ministry`s directorate general of debt management issued on Tuesday. The bonds series SPN12130502 due on May 2, 2013 will be issued with discount rate payment, it said.

Government Optimistic 5 State Firms to Issue IPO in 2012
State Enterprises Minister Dahlan Iskan remains optimistic that five state-owned companies will issue an initial public offering (IPO) of their shares this year. The planned IPO is included in the programmes of the ministry`s deputies, he remarked at his office here on Tuesday. The minister stated that his deputies had studied the plans of the state-owned companies and their subsidiaries to issue an IPO this year. "They (the deputies) have promised to accomplish the plans. But if they fail, let me do the job," he said.

Foreign Tourist Arrivals Surge by 10.12%
As many as 658,600 foreign tourists visited Indonesia in March 2012, representing a 10.12 percent of increase compared to the same period last year, the Central Statistics Agency (BPS) says. “Compared to February 2012, foreign tourist rate went up by 11.16 percent in March 2012,” BPS head Suryamin said here Tuesday. Cumulatively, around 1.90 million foreign tourists visited Indonesia from January 2012 to March 2012. This represents 11.01 percent of increase compared to the same period in 2011.

Indonesia Debt Drops Most in 8 Months on Fuel: Islamic Finance
Indonesian two-year sukuk, or the Islamic equivalent of bonds fell last month, pushing up yields by the most since September, as Standard & Poor's, kept the nation’s credit rating at junk after the government maintained fuel subsidies. Yields on sovereign 8.8 percent Shariah-compliant dollar-denominated bonds due April 2014 climbed 39 basis points to 2.92 percent on April 30, according to data compiled by Bloomberg. That compares with a 17 basis point drop in yields on Malaysia’s 3.928 percent global sukuk due 2015. The government’s inability to pare spending on energy subsidies will boost the budget deficit to 3.5 percent of gross domestic product, from 1.3 percent last year, President Susilo Bambang Yudhoyono said last week.

Presidential Regulation on Corruption Eradication to be Signed
The presidential regulation on the National Strategy for Corruption Eradication and Prevention will be signed next week, said Kuntoro Mangkusubroto, the chairman of the Presidential Working Unit for Development, Supervision and Oversight (UKP4), here on Tuesday. "It will be signed and issued in the second week of May," Kuntoro announced, adding that the regulation will cover various instructions which have been and will be issued. Kuntoro made this statement after attending a meeting on the National Strategy for Corruption Eradication and Prevention chaired by Vice President Boediono at his office.

SBY's Four Gifts for Workers
As Indonesian workers are observing the Global Workers Day which falls on May 1, coinciding with the event, President Susilo Bambang Yudhoyono has prepared four gifts for them. "First, the limit of non-taxable income will be increased from Rp 1,3 million to Rp 2 million," revealed Muhaimin Iskandar, Labor and Transmigration Minister, after a closed meeting for labor day preparations held at the Presidential Palace complex on Monday, April 30, 2012. The second gift is the construction of workers' hospitals in Tangerang, Bekasi and Sidoarjo, and third, cheap transportation for workers in the industrial zones. “As a start, the government will soon purchase 200 buses for Tangerang, Bekasi, East Java and Batam,” he disclosed.

Anti-Corruption Culture to be Included in School Curriculum
Anti-corruption culture will be included in the curriculum from elementary school to university, stated Minister for National Development Planning Armida Alisyahbana here on Tuesday. "The Ministry of Education and Culture will include anti-corruption education in the curriculum from elementary school to university," Armida announced after attending a meeting on the National Strategy for Corruption Eradication chaired by Vice President Boediono at his office.