Thursday, October 28, 2010
News Focus: RI Disasters Evoke Foreign Leaders' Sympathy
The successive disasters that hit Indonesia in October - the Wasior flash flood in West Papua, an earthquake-triggered tsunami in West Sumatra, and the Mount Merapi eruption in Central Java - have prompted foreign leaders to offer their condolences to Indonesia. The first to express his sympathy was the leader of the United states, followed by the leaders of Vietnam, Timor Leste, Greece, and Singapore. On Tuesday US President Barack Obama and his family offered their heartfelt condolences to the families of the victims of Monday`s deadly earthquake-triggered tsunami in Mentawai district, West Sumatra.

Government Disburses Rp3.9 Trillion for Disaster Management
The government has allocated Rp3.9 trillion for disaster management. The funds have been taken from the Revised Budget 2010 and is still waiting for the House of Representatives' (DPR) approval. Anny Ratnawati, Deputy Finance Minister, explained that Rp1.2 trillion of the funds will be allocated as reserve funds. In addition to this ongoing budget, the government has prepared a ready-to-use funds valued at Rp50 billion for the National Disaster Management Agency (BNPB). The Finance Minister will soon recommend an additional Rp150 billion fund for BNPB to the DPR. "We have communicated with the BNPB so the process can start soon," Anny said yesterday.

MT Merapi DeathToll Rises to 32
The number of fatalities from the Mt Merapi eruption rose to 32 Thursday morning from 30 on Wednesday evening, following the demise of two critically injured victims. Sardjito Yogyakarta Hospital`s data showed that Udi Sutrisno had died at 7.05 am local time, and Harno Wiyono at 7.00 am. Udi Sutrisno was a brother-in-law of Mbah Maridjan, believed to be the "spiritual caretaker" of Mount Merapi, one of the world`s most active volcanoes.

Mentawai Tsunami Toll Hits 343 as Bodies Found
Rescuers searching islands ravaged by a tsunami off West Sumatra raised the death toll to 343 Thursday as more bodies were found and said the number is likely to climb higher because hundreds of missing people may have been swept away. President Susilo Bambang Yudhoyono was met later Thursday with survivors of earthquake-triggered tsunami. In the tsunami-ravaged Mentawai islands, search and rescue teams - kept away for days by stormy seas and bad weather - found roads and beaches with swollen corpses lying on them, according to Harmensyah, head of the West Sumatra provincial disaster management center.

Mobile Hospitals to be Set Up in Mentawai
Mobile hospitals will be set up in quake hit areas to serve wounded victims in earthquake and tsunami-hit Mentawai Islands in West Sumatra, Health Minister Endang Rahayu Sedyaningsih said. The minister made the statement here on Wednesday after accompanying Vice President Boediono in an aerial observation of the areas hit by a 7.2 earthquake and a subsequent tsunami on Monday. "We have inspected a location in Munte Baru, Pagai Selatan, where the condition is very concerning with all house levelled to the ground," she said.

Donations For Merapi Eruption Victims Begin to Flow in
Donations for victims of the ongoing Mt Merapi eruption have started to flow to refugee camps at Hargobinangun, Pakem sub district, Sleman District, Yogyakarta. "The assistance has come from various parties, including government institutions, state enterprises, private companies, and from individuals," Bejo Wiryanto, Hargobinangun village head, said in Sleman, Wednesday. Some 41 donors have presented donations to refugees at the village. "The donations include food, medicines, from several institutions and individuals," he said.

Indonesia Holds Mass Burial for Volcano Victims
Disaster-prone Indonesia paused Thursday to bury victims of Mount Merapi's violent eruption, including an elderly spiritual leader appointed to hush the volcano's restless spirits. More than 20 of the 32 victims were buried in a mass grave in central Java as the country reels from the twin disasters of Tuesday's eruption and a tsunami which struck Sumatra island on Monday, killing more than 300 people. "They found my mother's body inside her house while my sister was lying on the ground outside," said 45-year-old mourner Dali Sri, as tears streamed down her face after the ceremony in Sidorejo village, south of the volcano.

Jakarta Stocks Close Higher on Regional Markets' Positive Sentiment
Positive sentiment in regional stock markets had a positive impact on the Indonesian Stock Exchange (IDX) leading the Composite Index (JCI) to close higher in afternoon trading on Thursday. The IDX index rose 16.12 points or 0.44 percent to 3,640.58 points while the 45 leading stocks group (LQ45) also closed stronger by 2,0027 points (0.30 percent) at 674,854. The Hang Seng index at the Hong Kong Stock Exchange rose 64.21 points (0.28 percent) to 23,228.79, and the Nikkei 225 index at the Tokyo Stock Exchange rose 1.42 points (0.02 percent) to 9380.93, while Singapore`s Straits Times index also rose 9.51 points (0.30 percent) to 3133.89.

RI, US Establish Cooperation in Education
The Indonesian and US governments established cooperation in education by way of United States Agency For International Development scholarships, assistant to rector of Bengkulu University for academic affairs Dr Fahrurrozi said. Fahrurrozi made the statement when addressing the familiarization of the USAID scholarships at the university`s information technology and communications body on Tuesday. He said the university had been cooperating with American higher learning institutions through advance study programs for its teachers.

Southeast Asia Seeks Common Currency Stance to Protect Exports
Indonesia is pushing fellow members of the Association of Southeast Asian Nations to adopt a common currency stance ahead of next month's Group of 20 summit to aid progress on a broader policy initiative. "We have encouraged Asean to develop a common perspective on the currency situation," Foreign Minister Marty Natalegawa told reporters in Hanoi today. "We must ensure that there are no inadvertent imbalances caused by efforts by some countries to protect export industries by artificially maintaining currencies at an exceptionally low level." Asean will send a representative to the meeting of G-20 leaders in Seoul, where leaders will discuss a plan to avoid "competitive devaluations" among members. Asean countries are meeting in the Vietnamese capital this week along with China, Japan, South Korea, India, Australia, New Zealand, the United States and Russia.

Indonesian Stocks Manage Modest Rise on US Data
The Jakarta Composite Index posted a moderate gain on Thursday, rising 14.36 points, or 0.4 percent, to close at 3,638.83. About 5.7 billion shares worth Rp 4.9 trillion ($541.9 million) changed hands. Gainers outnumbered decliners 149 to 71. The JCI is set for a 3.9 percent jump in October, its fifth monthly gain. Praska Putrantyo, an analyst from Infovesta Utama, said regional markets had mixed responses to the Fed's lukewarm home sales and durable orders reports, while the JCI closed higher following the European market's positive response to the Fed's reports and weakened dollar.

Success of Youth is Success of the Nation
Eighty-two years ago, on Oct. 28, 1928, a cluster of young patriots issued a communique called the Sumpah Pemuda (Youth Pledge) declaring the Indonesia's united nation, motherland and language. On that occasion, youth groups from Java, Sumatra and other islands pledged to strive for one nation, one country and one language - Indonesia. Later, the occurrence turned into a proud moment and major turning point in the country's independence struggle that culminated in the Declaration of Independence 17 years later.

We Couldn't Outrun Killer Wave: Villager
As Indonesians grieved and relief groups struggled to find transport to the remote Mentawai islands on Wednesday night, the first photos and personal accounts trickled in from Monday's tsunami. Aerial surveys showed the rubble of homes destroyed by waves triggered by a 7.7-magnitude earthquake that hit the west coast of Sumatra at 9:42 p.m. on Monday. It seems likely that the barrier islands of Mentawai shielded the Sumatran coast by absorbing the brunt of the tsunami. Almost 300 people are dead and over 400 are still missing, officials said, as terrifying stories emerged from the remote area.

In Wake of Disasters, Indonesians Jump-Start Relief Efforts Through Blogs and Twitter
Indonesians, while still struggling to comprehend the twin disasters that struck the country this week, mobilized on Wednesday to respond to the needs of the thousands of victims. Prominent blogger Wicaksono tweeted calls for donations and set up a collection center for those wanting to donate supplies. He said the drive was initiated by the Komunitas Langsat blogger community and that a Web site for the cause was expected to be up and running today. A donation box will also be made available at Pesta Blogger 2010 on Saturday. Used goods and clothing received will be resold to raise funds.

Borobudur Temple Cleared of Merapi's Volcanic Ash
The Borobudur temple in Magelang regency, Central Java, will soon be cleared of volcanic ash following the eruption of Mt Merapi on Tuesday, a spokesman said. Spokesman of PT Taman Wisata Candi Borobudur, Prambanan and Ratu Boko, Yogyakarta, Suraji said that Borobudur had also been showered by material and volcanic ash from Mt Merapi. According to the Borobudur conservation institute, the volcanic ash which also covered the ancient Buddhist temple contained sulphur which will harm the temple's stone structure, he said here Wednesday. He added that sulphur may damage the temple`s stone structure, and therefore the volcanic ash covering the temple needs to be cleared immediately.

Wednesday, October 27, 2010
Tsunami, Volcanic Eruption Force President to Cut Short Overseas Tour
Two natural disasters - an eathquake-triggered tsunami in Mentawai Islands, West Sumatra , and a Mount Merapi eruption in Central Java - compelled President Susilo Bambang Yudhoyono to cut short an overseas trip he was making. The president decided to cut short his visit in Hanoi and go straight to Padang, West Sumatra, Coordinating Minister for Political, Legal and Security Affairs Djoko Suyanto said in a short text message sent to Antara here on Wednesday. The president made the decision to return to Indonesia following a volcanic eruption in Central Java on Tuesday and an earthquake-triggered tsunami in West Sumatra, he said.

President Obama Offers Condolences to Sumatra's Tsunami Victims
United States President Barack Obama and his family offered their heartfelt condolences to the families of victims in Monday`s deadly earthquake-triggered tsunami in Mentawai, West Sumatra. "Michelle and I are deeply saddened by the loss of life, injuries, and damage that have occurred as a result of the recent earthquake and tsunami in West Sumatra. Our thoughts and prayers are with the Indonesian people and all those affected by this tragedy," Obama said in a statement issued by White House in Washington DC on Tuesday. Obama, who spent part of his childhood in Jakarta in the 1970s, added that he was encouraged by the outstanding resilience of the Indonesian people and government in their rapid assistance to the victims.

Hillary Clinton Offers Condolences Over W Sumatra Disaster
US State Secretary Hillary Clinton has conveyed the condolences of the American people over the loss of lives in the recent natural disaster in West Sumatra. "On behalf of the people of the United States, I offer our condolences over the loss of lives and the damage in West Sumatra caused by a deadly tsunami that hit the Mentawai District," Clinton said as quoted by the US embassy here at its website on Wednesday. She said that the US embassy in Jakarta and its consulate in Medan, North Sumatra, were working closely to monitor the situation.

Help On the Way for Indonesian Tsunami Disaster
Navy ships packed with medicine and food and rescuers in helicopters headed on Wednesday to remote Indonesian islands that were pounded by a 10-foot tsunami, sweeping away villages and killing at least 154 people. Rough seas and bad weather have hampered relief operations, leaving villagers to fend for themselves for nearly two days. With not enough people to dig graves, corpses littered beaches and roads, according to district chief, Edison Salelo Baja. Fisherman were scouring waters in search of survivors. The fault line that ruptured Monday on Sumatra island's coast also caused the 2004 quake and monster Indian Ocean tsunami that killed 230,000 people in a dozen countries.

Indonesia Fights on Two Fronts as Tsunami, Eruption Toll Rises
Rescuers searched for survivors of a tsunami in Indonesia's remote west while aid workers headed for the site of a volcano eruption as the death toll from the two disasters hours apart rose to more than 130. The toll from the Oct. 25 tsunami that hit the Mentawai Islands off the west coast of Sumatra reached 112 with 152 missing as of 10 p.m. on Tuesday night, Ade Edward, head of operations at the West Sumatra Regional Disaster Management Agency, said. At least 24 died in the eruption of Mount Merapi in Central Java. "The areas are remote and communication is difficult," Edward said by phone today. "Our officials over there are supposed to report at least every hour."

Foreign Parties Offer Assistance for Mentawai Emergency Response
Several foreign parties have offered assistance for emergency response efforts in tsunami-hit Mentawai, West Sumatra. The foreign parties were the United States Agency for International Development (USAID) and Australia`s disaster management body. But a spokesman for the National Disaster Mitigation Agency (BNPB), Sucipto, said here on Tuesday night Indonesia did not as yet need foreign assistance to deal with the aftermath of Tuesday`s tsunami in Mentawai, West Sumatra, which happened moments after a magnitude-7.2 earthquake.

Death Toll in Mentawai Disaster Recorded at 282
The disaster command post in Sipora sub-district up to 6 pm Wednesday had recorded 282 dead victims in the magnitude-7.2 earthquake and tsunami which hit Pagai island, Mentawai Islands district, on Monday. The command post also reported 411 people were still missing and 77 people suffering from serious injuries and 25 others minor ones. Data at the post also showed that 426 houses were heavily damaged or carried away by tsunami while those lightly damaged totalled 200 units.

Merapi's Volcanic Eruption Death Toll Reach 28
Rescuers scoured the slopes of Indonesia's most volatile volcano Mount Merapi Wednesday after it was rocked by an eruption that spewed clouds of searing ash, killing at least 28 people, including a journalist. Yogyakarta-based Dr. Sardjito Hospital reported that it had recorded 28 deaths at the hospital, but only two bodies had been identified. One body belongs to Yuniawan Nugroho, an editor with the vivanews.com news portal, who was killed while conducting reportage on Tuesday night. The other belongs to an Indonesian Red Cross worker.

Some 1,756 Residents Evacuated in Sleman
A total of 1,756 residents from three subdistricts in Sleman district, Yogyakarta, have been evacuated to several refugee centers as Mt Merapi status has been raised to the alert level. "We give priority to prone groups of people such as elderly people, under five-year-old children, pregnant women, the disabled," chief rescuer Budharjo at the Mount Eruption Main disaster Command Post in Pakem, said here on Tuesday. He said that of the total refugees, 999 were from Cangkringan subdistrict, 519 from Pakem and and 247 from Turi sub-districts.

RI Christians in Houston Set Up Social, Humanitarian Cooperation Board
Members of the Indonesian Christian community in Houston have formed an agency aimed at improving social and humanitarian functions of the Christians there, Paul Wahyudin, the agency`s chief, said. The agency, called the Indonesian Christian Cooperation Board (BKKIH), was aimed at increasing coordination and uniting Indonesians, and forming religious people, in Houston in particular, and in the United States as a whole. Paul Wahyuddin and Father John Taosan, and the board`s members, met Indonesian representative in Houston Al Busyra Basnur, last Saturday night to discuss the establishment of the Board.

President Appreciates Gains From Participation in Shanghai World Expo
President Susilo Bambang Yudhoyono expressed appreciation for what Indonesia was gaining by participating in the World Expo 2010 in Shanghai in terms of boosting the country`s image and encouraging bilateral relations in many sectors. "I will visit the Indonesia pavilion (at the World Expo) as President Hu Jintao had invited me when we met in Singapore, and I do wish to go there. I will also convey my gratitude and thanks to everybody involved in the World Expo," Yudhoyono said at a press conference at Halim Perdanakusuma Airport, Monday, before leaving for Shanghai. The President said he was told by Trade Minister Mari Elka Pangestu the Indonesia Pavilion at World Expo in Shanghai was projected to attract a total of 3 million visitors by last July.

International-Standard Schools Turned Into Green Schools
Around 38 International-standard Pioneer Schools (RSBI) Yogyakarta have been projected to become green schools. In the initial stage, this year 11 RSBI vocational schools will become the pilot project. To prepare this project, 35 teachers from the vocational schools will get training. Suwarsih Madya, the Yogyakarta Education, Youth, and Sports Office chief said the pioneer green schools are expected to inspire other schools to not only target student graduates, but also to build students' characters to love the environment. "So far, schools have only been concerned about developing theories," Suwarsih said on Monday.

Tuesday, October 26, 2010
Mt Merapi Erupts
Mount Merapi erupted on Tuesday evening, spewing hot clouds several times, after the Vulcanology and Geological Disaster Mitigation Centre had raised the alert status to the highest level the day before. "Between 05.02 p.m. and 05.34 p.m. the volcano spewed hot clouds four times and right now hot clouds are coming out of the volcano again and again," Head of the Vulcanology and Geological Disaster Mitigation Centre Surono said on Tuesday. The hot clouds signified the eruption of Mount Merapi after the agency had raised the alert status to the highest level the day before, he said.

Rupiah Trades Near Three-Year High as Fund Inflows Increase
Indonesia's rupiah traded near a three-year high after overseas investors added to holdings of the nation's stocks for a third day, boosting net purchases this year to $2.3 billion. The currency yesterday climbed the most in seven weeks after the Group of 20 nations pledged over the weekend to refrain from weakening their currencies. The Jakarta Composite Index rose 0.3 percent and was headed for a record close. "The rupiah strengthened a lot due to the G-20 outcome and expectations of much more inflows into Indonesia," said Lindawati Susanto, head of foreign-exchange trading at Bank Resona Perdania in Jakarta.

Mentawai Tsunami Kills 108; Scores More Missing
A tsunami that pounded several of the Mentawai Islands in West Sumatra killed at least 108 people left more than 500 people missing, Mentawai Legislative Council Speaker Hendri Dori said Tuesday. At least 80 bodies had been recovered as of 8 p.m. on Tuesday, West Sumatra Disaster Management Agency said. A magnitude-7.2 earthquake triggered the 3-meter wave that washed hundreds of homes into the sea late on Monday.

Government Maintain Rupiah Balance in Currency War
The government will continue to maintain balance in the Rupiah`s value amid the currency war that is heating up the world economy, Finance Minister Agus Martowardoyo said. "We are not prioritizing the weakening of any country`s currency because if all countries do so the global economy will be affected. So we will maintain the equilibrium of own exchange rate," Agus here Monday. The minister said that under the presnet conditions, several developed countries wanted China to strengthen its currency, the Yuan, and Indonesia will continue to maintain its trade balance and build a sustainable, strong and balanced economic growth.

President Launches Indonesia - China Business Forum
President Susilo Bambang Yudhoyono officially opened the Indonesia-China business forum yesterday afternoon. The forum involves a number if businessmen from both countries. At least 500 businessmen from Indonesia and China welcomed the President at China Hall, Pudong Shangri-La Hotel, the venue. The President was accompanied by Trade Minister Mari Elka Pangestu. The business forum was organized by the Indonesian Embassy in Beijing in cooperation with the China Council for the Promotion of International Trade.

RI, China Sign Cooperation Agreement in Energy, Mining Fields
Indonesia and China signed six cooperation agreements in the fields of mining and energy on Monday. The signing of the memorandum of understanding between Indonesian and Chinese businessmen in the fields was done during a business forum in Shanghai, witnessed by Indonesian President Susilo Bambang Yudhoyono who was on a visit to that country. Based on the agreements Shanghai Know-How Marine Equipment would be the distributor of Pertamina Marine lubricating oil. The distribution area is China with a sales value of US$600,000 a year. The two parties have set the sales target of US$1,500,000 a year in the second year.

Government Considering 100 Pct Insurance for Smallholder`s Credits
The government is considering providing 100 percent insurance for smallholder credits (KUR) in order to assure issuing banks of their funds, a cabinet minister said. Minister for Cooperatives and Small Businesses Sjarifuddin Hasan said here on Tuesday that his side was still studying the possibility of providing 100 percent insurance for KUR credits. At present the government provides 80 percent insurance for KUR credits through the Insurance Agency while the remaining 20 percent was borne by the issuing banks. Before, the government only bore 70 percent through the insurance institution but now it had been raised to 80 percent. Now it is expected that the government would bear 100 percent.

RI to Encourage ASEAN Countries to Play Greater Global Role
President Susilo Bambang Yudhoyono said Indonesia is to encourage ASEAN member countries to play a greater role in the international political arena when it assumes the ASEAN chair for 2011. ASEAN could play an important role in present-day global politics in which all countries were pushing for equality in position in international affairs, the President said here Monday shortly before going on an overseas trip to visit China and Vietnam. He said Indonesia would surely not waste the chance as the ASEAN chair in 2011 to involve ASEAN countries in many global activities in many sectors so that ASEAN could grow well, he said.

Monday, October 25, 2010
News Focus: Economic Zones Designed to Improve Locals' Welfare
If successful, the government's plan to divide the country's economic development into economic zones and clusters will create jobs for members of the local community for mutual welfare. Called "Indonesia Economic Corridor 2011," the economic zone projects, which are now under discussion with the relevant ministries, are expected to start in 2011 and to be finished in 2025. The government is drawing up six economic corridors whose aim is to improve the local people`s welfare. Each zone would be built in accordance with its potentials and aimed to create work balance with other zones.

SBY Gears China Visit Toward Boosting Trade
After President Susilo Bambang Yudhoyono's two-day visit to Shanghai, the government expects to see more Chinese investment here and more Indonesian products being sold in the world's No. 2 economy. The president is scheduled to be in Shanghai today and Tuesday, promoting trade relations between the two nations. "The meeting with the Chinese businessmen in Shanghai is expected to boost Chinese investment in Indonesia and expand the market for Indonesian's products," presidential staffer Teuku Faizasyah said in a statement on Saturday. "The visit coincides with the 60th anniversary of bilateral relations between Indonesia and China, which have recently been strengthened by strategic partnership," Yudhoyono said.

Indonesia Asks China to Increase Investment
Indonesia has asked China to continue increasing its investment in the country. "We hope there will be more investments from China," Indonesian president Susilo Bambang Yudhoyono said when opening a business forum between Indonesian and Chinese businessmen here on Monday. President Yudhoyono said Indonesia is a promising investment target. He said Indonesia is improving and keeps improving itself with regard to creating a conducive climate for investment.

Pricey Indonesian Tax for Overseas Travel to Expire Next Year
The "fiscal" tax charged to Indonesian citizens travelling overseas will be a thing of the past next year after the policy expires on Dec. 31, a spokesman from the directorate general of taxation said on Sunday. The tax, which was increased in 2009, was an attempt by the government to boost revenue by charging non-taxpaying citizens a fee for leaving the country. Before 2009, all overseas travellers were compelled to pay the tax, known as a fiscal, of Rp 1 million ($112) before proceeding to their boarding gate.

Jakarta Needs Metro to Avoid Traffic Gridlock
After reading The Economist magazine September 2010 issue, I realized that Jakarta had a new call: The largest city in the world without a metro. The Economist reported that car ownership in Jakarta had increased by 10-15 percent a year. Motorcycles are ubiquitous and can be acquired with a down payment of as little as US$30. On the other hand, the growth rate of Jakarta's road is less than 1 percent a year. The daily jams in Jakarta are getting worse. Jakarta is estimated to lose $3 billion a year due to transport delays and to attain total traffic gridlock in 2014. The acute traffic congestion in Jakarta has also prompted President Susilo Bambang Yudhoyono to revisit the idea of capital relocation out of Jakarta. Relocating the capital out of Jakarta could reduce urbanization and the rate of car ownership in Jakarta and its surrounding areas, but it will not completely address the traffic congestion in Jakarta.

WTO Ruling Clears Way for US Duties on Chinese, Indonesian Paper
The United States will impose dumping and anti-subsidy duties on glossy paper from Indonesia and China after the US International Trade Commission ruled that domestic makers may be harmed by low-cost imports. The panel's 6-0 vote on Friday came hours after a World Trade Organization decision that applying both sets of duties on China does not violate international trade rules. China has called the duties protectionist, while US lawmakers and makers of steel, paper and textiles say they are crucial to countering what they call unfair trade practices.

Friday, October 22, 2010
Indonesia to Continue Tightening Liquidity to Meet Capital Inflows
Indonesia will continue to maintain tightening the liquidity to meet strong inflows of capital, Bank Indonesia deputy governor Halim Alamsyah said here on Friday. He said the decision was taken with a view to stabilizing the financial system and safeguarding the momentum of economic growth. "So the theme of the banking and monetary policy is controlling the liquidity so that it would not become too excessive," he said.

Government to Sell Rp 3 Trillion Worth of State Bonds
The government plans to sell state bonds (SUNs) with a total indicative value of Rp3 trillion through an auction on October 26, 2010, a Finance Ministry official said. Rahmat Waluyanto, the ministry`s debt management director general, said here Friday the SUNs would be auctioned to help meet the state`s income target for 2010. To be put up for sale would be SUNs in the series SPN20110929, FR0055, FR0053, and FR0056. SPN20110929 interest discount payment (reopening), which will due on September 29, 2011 with 11 months tenor.

Ancient Wisdom Instills Tolerance in Bali
A legislator from Bali recently boasted that the island does not really need to support a proposed law on religious tolerance, one of the most talked about issues at the House of Representatives following religious and ethnic conflicts in many parts of Indonesia. I Wayan Sudhirta, a member of the Regional Representatives Council, was probably right, as Hindu-dominated Bali has successfully managed to escape from ethnic and religious unrest thanks to the local concept of Nyama Braya, a centuries-old bit of wisdom. Governor Made Mangku Pastika insisted that Bali belongs to the entire community regardless of their religious and cultural background. Eighty-five percent out of a total population of 3.9 million on the tiny island are Hindu. Ten percent are Muslim, 2 percent are Catholic or Protestant, and 3 percent are Buddhist or other faiths.

President: 0.6-Pct Annual Poverty Rate Reduction Good Enough
President Susilo Bambang Yudhoyono said he was satisfied that Indonesia`s poverty rate had decreased by 0.6 percent per year over the past six years. "This is quite good. It proves that the government has been able to reduce the number of the poor in stages," he said at a plenary cabinet meeting at the presidential palace in Bogor, West Java, on Thursday. Speaking at the opening of the cabinet meeting, he said many people who did not know the difficulties thought reducing poverty could be done easily by two or three percent a year.

Timur Pradopo Installed as New Police Chief
President Susilo Bambang Yudhoyono swore in new National Police chief Gen. Timur Pradopo on Friday. Timur will replace the retiring Gen. Bambang Hendarso Danuri. The inauguration ceremony was held at the Presidential Palace after the House of Representatives reviewed a recent fit-and-proper test and finally endorsed Timur during its Wednesday plenary session. Timur was the only name nominated to replace Bambang by Yudhoyono, who dismissed media reports that suggested other candidates had been proposed.

RI's Supporting Tourism Factors Developing Well
Indonesia's foreign tourist arrival target in 2011 should be set at nine million because the factors supporting its tourism are developing well, an economist said. "The government should be courageous to set its target at nine million," Dean of the Economic Faculty of the University of Indonesia (UI), Rhenald Kasali said here on Thursday. He said that the target should be set every year with a one million increase so that the government would have the impetus to work hard to achieve it.

JCI Finishes Roller-Coaster Week Down Slightly; Rupiah Holds Steady
The Indonesian benchmark stock index posted a modest gain on Friday, thanks to overnight gains on Wall Street, but ended an up-and-down week with a slight loss. The Jakarta Composite Index gained 9.74 points, or 0.3 percent, to close at 3,597.75, a decline of 0.1 percent on the week. About 6.2 billion shares worth Rp 5.4 trillion ($600.3 million) changed hands. Losers outnumbered gainers 118 to 97. Harry Manuputty, an analyst at Pacific 2000 Investindo, said the market lacked a catalyst to move significantly higher or lower as it consolidated recent gains that saw it reach near-record highs.

Thursday, October 21, 2010
As Surge Continues, IMF Lauds Indonesia's Handling of Hot Money
Indonesia is successfully managing a surge in capital inflows and the current policy by authorities to ease the risk of sudden reversals of the hot money has been effective, Anoop Signh, director of the IMF's Asia and Pacific Department, said on Thursday. The comment came after the fund remarked earlier that Asia's world-leading economies will keep drawing capital because interest rates in the United States and other advanced nations will be low for a prolonged period, while urging officials in the region to withdraw stimulus to contain inflation. The IMF also said it expects the Indonesian economy to grow 6 percent this year and 6.2 percent in 2011.

RI's Economy, People's Welfare Have Improved: Chief Minister
Indonesia's economy and its people's welfare have improved not only in macro-economic terms as indicated by its GDP (Gross Domestic Product) growth, a senior minister said. "We must look at the data. Industries have grown 4.6 percent on a year-on-year (yoy) basis. Admittedly, much still has to be accomplsihed but unemployment and poverty have decreased while welfare has risen to 3,000 US dollars per capita," Coordinating Minister for Economic Affairs Hatta Rajasa said here Wednesday. He said he wondered what economic parameters were used by those who insisted that the government had performed poorly in advancing the country.

News Focus: RI, China Enhancing Concrete Economic Cooperation
Indonesia and China are stepping up concrete cooperation in different economic fields including trade, investment and development projects, as part of efforts to realize their partnership agreement they signed in April 2005 covering politics, security, economy and socio-cultural development. On Wednesday, both sides made a concrete effort to realize their cooperation by signing four economic agreements covering trade financing, investment and infrastructure development. The agreements were contained in memorandums of understanding signed in Beijing by officials from the two countries and witnessed by visiting Indonesian Vice President Boediono.

Political Stability Serves as Momentum to Spur Growth
The government under the leadership of President Susilo Bambang Yudhoyono and Vice President Boediono should benefit from the current momentum of domestic security and political stability to spur economic growth, a businessman said. "The government should take advantage of this conducive situation to boost economic sectors," Chairman of the Indonesian Businessmen Association (Apindo) Sofjan Wanandi said here on Wednesday. President Yudhoyono had managed to create security and political stability during the first year of his second term of office, he said.

President Asks Government Bureaucracy to Cut Expenditures by 10 Pct
President Susilo Bambang Yudhoyono has called for austerity in the use of budget funds in government ministries and public institutions to cut their expenditures by up to 10 percent. He made the request at the opening of a plenary cabinet meeting at the presidential palace in Bogor, West Java, on Thursday. Of the 2010 national budget totaling more than Rp1,100 trillion, the ministries and government institutions receive around Rp600 trillion. President Yudhoyono said if the budget for the ministries and institutions could be saved by 10 percent the government would get n additional funds totaling Rp60 trillion. "This could be used for many purposes," he said.

RI-Brazil Trade Expected to Reach US$ 2.5 Billion
Total trade between Indonesia and Brazil is expected to reach US$2.5 billion this year. "Trade relations between the two countries have increased lately. This year trade between Brazil and Indonesia is up 35 percent meaning it could reach US$2.5 billion this year," Brazil`s vice minister of trade and industrial development, Ivan Ramalho, said here on Wednesday. According to data of the Indonesian ministry of trade the total value of trade between the two countries in 2009 was recorded at US$1.9 billion.

Foreign Governments Eye Indonesia's Geothermal Projects
A number of foreign countries have confirmed their intention to invest in geothermal resource sector in Indonesia. "We will push for this starting today until Christmas," Murray McCully, the New Zealand Foreign Minister who has been in Indonesia since last Monday, told Tempo. McCully said the collaboration will start with geothermal technology education. "We cannot specify the program yet," he said. New Zealand is experienced in developing geothermal power since the 1950s. "We have collaborated with many countries on this, among them Chile." Following the Joint Ministerial Commission meeting between Indonesia and New Zealand last Tuesday, Foreign Minister Marty Natalegawa confirmed that Indonesia welcomed the collaboration in developing geothermal energy.

Krakatau Steel IPO Grabs Foreign Investor Attention
State-owned Krakatau Steel's imminent initial public offering is generating strong demand from overseas investors, according to a the State Enterprises Ministry. Mahmudin Yasin, the ministry's newly appointed secretary, said late on Wednesday that foreign investors alone had offered Rp 8 trillion ($896 million) in bids for the company's shares, surpassing the target of Rp 3.3 trillion, following roadshows in Singapore, Hong Kong, London and New York. "It is possible Krakatau Steel's shares will be oversubscribed fourfold. But the final price will be decided next week," he said.

Wednesday, October 20, 2010
RI's August Exports Reach $11.8 Bln
Indonesia registered 11.8 billion US dollars worth of exports in August, the highest export figure ever achieved but the potentials were bigger and exports may still increase, a business leader has said. "The figure may look fantastic, but it could have been more. Exports may still increase," Sofyan Wanandi, chairman of Indonesian Businessmen`s Association (Apindo) told ANTARA in an interview, on Tuesday. Wanandi was asked for his comments after the Trade Ministry announced that exports in August reached a value of 11.8 billion dollars. Wanandi added that it had come as no surprise when the export value in August reached such a big figure because demand for Indonesian products overseas had risen significantly.

Indonesian Economy with a US$ 3,000 Per Capita GDP
The Indonesian economy is approaching an exciting new economic position. By the end of this year, Indonesia's economy may produce a nominal GDP of around Rp 6,400 trillion, roughly equivalent to US$700 billion. With a total 2010 population of 238 million people, Indonesia should achieve an average per capita GDP of around US$3,000. The strategic value of this important point was addressed during a recent meeting between the management of one Indonesian bank and its counterpart from Japan. One of the Japanese delegates emphasized the importance of achieving a nominal per capita GDP of $3,000, but failed to elaborate further.

US Admires Democracy in Indonesia
US Ambassador to Indonesia Scot Marciel admires Indonesian democracy for more than ten years. In a meeting with Regional Representatives Council (DPD) chairman Irman Gusman here on Tuesday, Marciel said Indonesia had successfully made political reform and reordered the state system. According to Marciel, Indonesia`s success in political field would strengthen economic development because it was supported with political stability, harmonious relation between central and regional governments, and the diversity of tribes, races, and religions.

RI Asks UNSC to Urge Israel to Dismantle Settlements
Indonesia has urged the United Nations Security Council (UNSC) to press Israel to dismantle settlements built in occupied Palestinian land. "We believe that the Council could take similar step by pronouncing itself collectively, and with a single voice, to urgently demand Israel to dismantle the existing settlements and to cease the construction and planning of settlements in the Occupied Palestinian Territory," Indonesian Permanent Representative/Ambassador to the UN Hasan Kleib said at a UNSC meeting at the UN Headquarters here on Monday. He said Israel`s continued construction of settlements in the occupied land had always posed a stumbling block to its peace talks with Palestine.

Garuda Is Back in Business and Ready for $300m IPO, Upbeat Chief Says
Indonesian flag carrier Garuda is "back in business" and moving forward with plans for an initial public offering and expansion, just months after a European Union travel ban was lifted, the airline's president director said on Wednesday. The airline plans to hold an IPO in February to fund the expansion, including the purchase of new aircraft, Emirsyah Satar said on the sidelines of an aviation forum in Singapore. Garuda wants to raise $300 million to strengthen its capital structure and help fund six new Airbus A330-200 aircraft valued at $1.15 billion.

Foreign Investment in Government Bonds Increases to Rp 3.25 Trillion
Bank Indonesia (BI/the central bank) recorded that foreign funds invested with state debentures (SUN) in the 11-15 October period increased to Rp3.25 trillion, a BI official said. BI spokesman Difi A Johansyah said here on Tuesday that with the increase, the foreign investment ceiling in SUNs rose from 29.35 percent to 30.12 percent. In the past one week, net share sales in the domestic market by foreign investors stood at Rp161 billion with a transaction value reaching 29.63 percent of the total share transactions.

Law Minister Inaugurates Human Rights Resources Center for ASEAN
Law and Human Rights Minister Patrialis Akbar here Tuesday inaugurated the Human Rights Resources Center for ASEAN (HRRCA), a foundation concerned with human rights issues of ASEAN's 10 member countries. "I am pleased to welcome the establishment of the HRRCA for the advancement, protection and fulfillment of human rights in ASEAN as a contribution to the human rights of all mankind," Patrialis said here Tuesday. HRRCA is a non-profit organization under Indonesian law to complement the work of the ASEAN Intergovernmental Commission on Human Rights (AICHR) by conducting research and capacity building as well as providing training on and addressing human rights issues in ASEAN.

NU Supports Government's Efforts to Eradicate Terrorism
The state should not show leniency in dealing with terrorism in various parts of the country, the leader of Nahdlatul Ulama (NU)`s Bogor branch, Zainullah, said here on Tuesday. "NU fully supports the government`s efforts to eradicate terrorism in the country," Zainullah said. He said the acts of terrorism perpetrated by a small group of people cannot be justified by any reason or logic. "Terrorism is an unforgivable criminal practice. No religion ever teaches terrorism and therefore all religions , including Islam, condemn acts of terrorism," he said.

Tuesday, October 19, 2010
JCI Rebounds After Series of Losses, Rupiah Holds Steady
The Jakarta Composite Index rose for the first time in three days as most regional markets moved higher on Tuesday. The JCI rose 25.87 points, or 0.7 percent, to close at 3,592.79, just 26 points below its record closing high set on Thursday. Volume was heavy, with 11.02 billion shares worth Rp 6.8 trillion ($755.1 million) changing hands. Gainers outnumbered decliners 139 to 77. Dani Hotron, an analyst at Phillip Securities Indonesia, said technical indicators pointed to further gains for the JCI this week.

Bank Indonesia Seeking Stability With Longer-Term Deposits
The central bank plans to offer term deposits with maturities of three months, six months and nine months as it seeks to reduce currency volatility following a surge in capital inflow. The current maturities are for one and two months. Bank Indonesia still has to decide when to issue the new term deposits, Dyah Nastiti Makhijani, a spokeswoman at the central bank, said on Tuesday. Bank Indonesia's term deposits cannot be traded in the secondary market and investors must hold them until maturity, she added.

Seven Foreign Investors Interested in Indonesian Cocoa
Benny Wachjudi, the Industry Ministry's Agro and Chemical director-general, said there were seven foreign investors interested in investing in the cocoa industry. They are ADM Cocoa from Singapore, Guanchong Cocoa from Malaysia, Olam International from Singapore, Cargill from the Netherlands, Mars from the US, Armajaro from the UK and Ferrero from Italy. Benny admitted the plan was not yet in the form of an agreement, but some of these potential investors have met with the Investment Coordination Board (BKPM). "In fact, some have only conveyed their intention in a letter," he said yesterday.

RI Needs Rp 736 Trillion to Develop Its Manufacturing Industry
Indonesia needs investments worth Rp736 trillion to develop and boost the growth of its manufacturing industry to 7.7 percent by 2014, a minister said. "This year we set a growth of 4.65 percent. But up to the second quarter it has reached 4.9 percent," Industry Minister MS Hidayat said in a press release here on Tuesday. He said that the industry ministry has the vision to equalize the growth of industry and that of gross domestic products. But the efforts often faced classical problems such as the lack of physical infrastructures such as roads, ports, railways and power supply.

President Inaugurates Infrastructure Projects in S Sulawesi
President Susilo Bambang Yudhoyono on Tuesday inaugurated a number of infrastructure projects in South Sulawesi province intended to spur the local economy and give the greatest possible benefit to the community. "We hope these projects will speed up and increase development and encourage investment," he said. The President asked all relevant parties to maintain the infrastructure projects properly. The newly-inaugurated projects include the Andi Mattalata ferry port worth Rp32 billion in Garongkong, Barru district, the Pamatata seaport worth Rp54 billion and the Lagaligo airport worth Rp54 billion in Luwu district.

RI Aspiring to Become World's Cultural Center: Minister
Indonesia is to host a World Culture Forum in Bali in 2012 to realize its dream of becoming the world`s cultural center, Culture and Tourism Minister Jero Wacik said. "Our plan to host the World Cultural Forum 2012 in Bali is related to our dream to make Indonesia the world`s cultural center," the minister said here Monday. Indonesia deserves the honor to be the world`s cultural center on account of the high degree of its cultural diversity, he said. In fact, Indonesia was the most culturally diverse nation in the Asia Pacific region, he added.

Monday, October 18, 2010
Feature: U.S. Trails China in Entering RI's Infrastructure Business
The 200-billion U.S dollars worth of infrastructure business in Indonesia seems too good to be just flipped over by U.S. businesses, and Washington might not hesitate to back up as the Chinese were first. The Indonesian Investment Coordinating Agency (BKPM) and the US-ASEAN Business Council signed a Memorandum of Understanding (MOU) in Jakarta last week (Oct. 11). Under the MoU, the parties outlined their plan to work together in expanding investment in infrastructure through public-private partnership. BKPM was represented by its chairman Gita Wirjawan, the US-ASEAN Business Council by its President Alexander Feldman, Caterpillar Asia by its chairman, and the US-ASEAN Business Council Infrastructure Working Group by its chairman Kevin R. Thieneman on behalf of U.S. Businesses.

Government to Build 1,000 Temporary Shelters in Flood-Hit Wasior
The government will soon build 1,000 temporary shelters for victims of a flash flood that swept through Wasior town in West Papua province on October 4, a Public Works Ministry official said. The temporary shelters would be built after the emergency response period ended, Amirudin, head of the settlement development sub-directorate at the ministry`s directorate of housing, planning and urban development, said here on Monday. The emergency response period which was supposed to end on October 14 had been extended to the end of October at President Susilo Bambang Yudhoyono's request.

Indonesia Plays Role in Promoting Human Rights in ASEAN
The Human Rights Resource Centre for ASEAN (HRRCA) in association with the National Commission on Human Rights (Komnas HAM) held a discussion on Indonesia`s role in promoting human rights in the Southeast Asian region on Monday. According to the HRRCA frame of reference, Indonesia as the largest democratic country in Southeast Asia and the third largest in the world after the United States and India played an important role in promoting human rights in the region. Both the HRCCA and Komnas HAM considered the role worthy of in-depth study and comparison with political and legal constellation in other ASEAN member states.

Bali Plans to Complete Coral Reef Restoration in 2014
Badung district plans in 2014 to restore damaged coral reefs along the southern coasts of Bali where popular tourists site are located, an official said on Sunday. "Funds for the restoration project will be allocated gradually each year from various sources, central government, provincial budget and contributions from business circles and hotels," I Made Badra, head of Badung fishery and maritime office said. Speaking to the press at Coral Restoration and Body Painting Competition in Peninsula beach, Nusa Dua, Badra said the restoration project is expected to be completed in 2014 along the an 82-km coastline in southern Bali.

Sangiran to be Asia's Biggest Center for the Study of Prehistoric Humans
Harry Widianto, director of the Sangiran Conservation Center for the Study of Prehistoric Humans, said Sangiran will be the biggest center of its kind in Asia. At present, the Center continues to develop the Sangiran Museum, located in Sragen. The museum is improving its exhibit areas, its laboratory, rooms for audio visual activity, creation of animation media, seminars and a home stay for researchers. It is also building an observation post, a souvenir center, and offices for conservation projects. "The construction will be completed by October 2011 and it will be officially inaugurated by the President," Harry said yesterday.

News Focus: Aceh Has Significant Investment Potential
Thanks to its natural beauty and extensive rubber, cocoa, coffee, and palm oil plantations, and shrimp farms, Aceh province has significant investment potential. Therefore many investors have invested and want to invest in the province but unfortunately they are at present hampered by lack security and the imposition of Islamic syariah law. Aceh Provincial Legislative Assembly`s Commission-C member Zulkifli said in Lhokseumawe on Sunday that unstable security condition and the imposition of Islamic syariah law had hampered foreign investors to invest in the province.

Developed Indonesia and Third World America
Indonesia is enjoying a rosy economy with a 6.3 percent GDP growth predicted in 2011. The United States' economy, however, is slowing down rapidly with a predicted 2011 GDP growth of 2.5 percent. Assuming optimized economic, political, and legislative environments at home and in Mexico, Australia, Vietnam, Nigeria and South Africa (MAVINS), Indonesia shall become a developed country by 2032. On the contrary, assuming pro-blems aren't fixed properly, the United States may have become a third world country by that time.

Indonesia Calls for Vigilance in Terrorism Fight
Indonesia on Monday called for greater vigilance and cooperation in the fight against terror, as counter-terrorism chiefs from around the world met in Bali. Security Affairs Minister Djoko Suyanto told delegates from 22 countries that Indonesia had struck a significant blow against Southeast Asian terror networks in recent years but there was no room for complacency. "Although a number of terrorists have been killed, captured and punished, some by way of execution, the entire terrorist network has not been uncovered," he said at the start of the International Seminar on Counter-Terrorism, organized by Indonesia's new National Anti-Terror Agency (BNPT).

Friday, October 15, 2010
RI Inviting Oil, Gas Investors from US
Indonesia is currently conducting a roadshow in Houston, the US, in an effort to invite US oil and gas companies to invest more in the country. "Indonesia is asking US businesses especially oil and gas companies in the South to invest more in Indonesia," Indonesian Consul in Houston, Al Busyro Basnur said in a written statement received by ANTARA News here on Friday. He said the US is the seventh biggest investor in Indonesia with most investment put in the oil and gas sector. In Houston meanwhile there are around 5,000 companies operating in the sector, he said.

Fishermen Receives International Award On Environmental Preservation
Heifer International, an international research development institution, has presented an award to Ahmad Salim (30), a fisherman from Pahawang Island, Lampung, for his efforts in preserving the environment. "I was awarded the appreciation for my role in environmental and mangrove forest conservation on Pahawang Island in the last three years," he said here Friday. Besides receiving the award, Ahmad is also entitled to a coaching fund prize of 1.000 US dollars for developing and conservation of the environment.

BI to Keep Watch on Potential World Crisis
Bank Indonesia will continue to monitor the development of economic crisis in various countries to prevent the country from being plunged into a similar crisis, the bank's governor, Darmin Nasution, said. He said in his speech at the handing over the post of the New York chapter of Bank Indonesia from Lucky Fathul Aziz Hadibrata to Kusumaningtuti Sandriharmy Soetiono here on Thursday that an economic crisis did not always have its origin at home but even the most developed country like the US and also European countries could be affected like what they have been facing now. "Even now there are countries because of their scale have been categorized systemic with the potential of pulling other countries into the crisis," he said.

RI Has Abundant Biodiversity
Indonesia has abundant biodiversity as an alternative in place of rice as staple food, an environmentalist has said. "We have biodiversity in abundance as an alternative to replace rice as staple food and therefore don`t worry about food shortage," former environment minister Emil Salim said here on Thursday. The member of Presidential Advisory Council as the adviser for environment and sustainable development issues said other staple food in place of rice had long been known by Indonesian people but unfortunately it has yet to be popularized to replace rice.

Film About Pekalongan Batik Starts Production
The city of Pekalongan, Central Java, takes its reputation as a renowned center for batik seriously, so much so that it has made learning how to make the cloth a compulsory requirement for students. This move earned the town an award from Unesco in November 2009, the same time that Indonesian batik was officially included on Unesco's Representative List of the Intangible Cultural Heritage of Humanity. Part of Pekalongan's award requires that a documentary film about batik-making in schools be produced. The film, which rolled into production this week, will be shown by Unesco worldwide as a shining example of how a country makes an effort to preserve its cultural heritage.

Trade Ministry: Indomie Instant Noodles Safe for Consumption
Indonesia`s Trade Ministry has reiterated that Indomie instant noodles are safe for consumption by humans based on the FAO-sanctioned standards of CODEX Alimentarius Commission (CAC). Trade Minister Mari Elka Pangestu had affirmed that food and beverage products made in Indonesia always meet the health standards and criteria prescribed by relevant Indonesian and international authorities, her office said in statement here Friday. The minister made the affirmation on Tuesday after Taiwan authorities recalled Indomie instant noodles from their domestic market a week earlier. The Taiwan authorities took the measure after finding dangerous substances in the Indomie noodles.

Senator Lugar Meets With DPR's Commission VIII Members
Senator Richard Lugar (R-IN), ranking member of the U.S. Senate Foreign Relations Committee, met with visiting Indonesian House of Representatives (DPR) - Commission Eight delegation members in Washington, D.C. on October 13, 2010. The Senator and Commission Members exchanged views on ways of strengthening Indonesia - U.S. relations, according to information on the official website of the US Embassy in Jakarta, Friday. In the meeting, they discussed their respective experiences with the development of democracy in each country.

Thursday, October 14, 2010
Government to Provide Temporary Housing for Wasior Flood Victims
President Susilo Bambang Yudhoyono said the government would provide temporary housing for victims of the recent flash flood in Wasior now staying in Manokwari, West Papua. "Better accommodations will be provided for them while reconstruction efforts in Wasior are being made," he said in a dialogue with evacuees at a local military field here on Wednesday. He said it was indeed not appropriate for people to stay in an evacuation center for a prolonged period and therefore the government would build temporary houses that meet minimum standards for them. Meanwhile, he hoped the evacuees would exercise patience.

Indonesia Stocks Increase for Second Day
Indonesia's Jakarta Composite index rose 21.76, or 0.6 percent, to 3,633.74 as of 9:57 a.m. on Thursday, the second day of advance after reaching a record high on Wednesday. Crude oil rose for a second day in New York after an industry-funded report showed United States supplies fell and the dollar declined against the euro, increasing the appeal of commodities as an alternative investment. Elnusa, an oil services company, gained 1.5 percent to Rp 350.

Government Opens Investment Opportunities in Tourism Sector
The government has opened investment opportunities in the tourism sector in 18 potential areas located in West Java, Kalimantan, West Nusa Tenggara (NTB), East Nusa Tenggara (NTT), and West Papua. The 18 potential areas included Ciamis, Alor, Ternate Island, Tarakan, Berau, Balikpapan, Pantai Beang on Pantar Island, Lombok Tengah, Sumbawa Barat, Raja Ampat, and Wai Island, Firmansyah Rahim, the tourism and culture ministry`s director general for tourist destination development, said when speaking in the investment, trade and tourism forum at the Indonesian Trade Expo 2010, here, Thursday. "These areas are beautiful, and only few investments came. We offer them to investors because the areas are ready. We have talked with the local authorities," he said.

President : Wasior Forests Still in Good Condition
President Susilo Bambang Yudhoyono said forests in the flash flood devastated area of Wasior in West Papua were still well kept. Therefore, it was concluded that the deadly flash flood in the region was not due to uncontrollable illegal logging as certain parties had alleged. "I have myself witnessed that forests in the Wasior region are still in good condition," President Yudhoyono said after visiting a watershed area in Wasior on Thursday morning.

Islamic Boarding Schools Not Linked to Terrorism: Japanese Envoy
Japanese Ambassador to Indonesia Kojiro Shiojiri said having visited many Islamic boarding schools in Indonesia, he could say there was no relationship between such schools and terrorism. He made the statement in remarks here Tuesday at a function to send off 11 Islamic boarding school teachers who would soon leave for Japan for a study tour. Kojiro said he hoped the 11 teachers would not only gain more knowledge in Japan but also share what they knew with Japanese Muslims.

Indonesian Armed Forces Present Anti-Terrorism Material to People
The Indonesian Armed Forces has included anti-terrorism materials in its 85th Village Development Program (TMMD) as additional guidance material. "TMMD is not only about physical development, but also about expanding the horizon, including terrorism," said the Military Academy governor, Brig. Gen. Suharsono, yesterday in Surakarta. The materials presented include the anatomy of terrorism, which is the ways and methods of of alleged terrorist groups within communities. For instance, they keep to themselves and are not involved with the neighborhood. They also do not like to socialize and tend to do things secretly. "So if there are strange and unusual activities in the neighborhood, they should be communicated to the security people," he said. They would later verify any suspicious activities.

Advertising Spending in Indonesia Increases Sharply: Nielsen
Advertising spending in Indonesia increased 29 percent in the first half of 2010 as the economy emerged from recession, research firm Nielsen said on Thursday. Indonesia's increase was the second highest in the Asia-Pacific region, where advertisers spent $67.69 billion in the six months to June, up 17 percent from 2009 and 20 percent higher than the figure for the same period in 2008 before the onset of the global downturn, a press statement said. "With consumers already spending, many high-profile global and regional marketers have identified the opportunity and already launched 'back to business as usual' advertising strategies," said Richard Basil-Jones, regional managing director at Nielsen Media.

JCI Edges Up to New Record, But Rally Raises Questions
The Jakarta Composite Index eked out a small gain on Thursday, but it enough for a second-straight record close. The JCI rose 6.5 points, or 0.2 percent, to close at 3,618.48. Volume was heavy, with 11.6 billion shares worth Rp 8.95 trillion ($996.9 million) changing hands. Decliners outnumbered gainers 114 to 102. Frederik Daniel Tanggela, an analyst at Sucorinvest Central Gani, said the gains might have gotten ahead of real economic and earnings growth, and questioned the sustainability of the rally. However, he said he was confident in the longer-term bullish trend, citing the country's economic fundamentals.

Wednesday, October 13, 2010
JCI Surges to New High, Rupiah Gains on Expectations of US Monetary Easing
The Jakarta Composite Index surged to an all-time high on Wednesday, joining other Asian markets in advancing amid expectations of fresh US quantitative easing, with rising crude oil prices swelling demand for heavily weighted commodity shares across the region. The JCI advanced 64.73 points, or 1.8 percent, to close at 3.611.98, the steepest advance since Oct. 1. Volume was heavy, with 9.4 billion shares worth Rp 6.67 trillion ($747 million) changing hands. Gainers led losers 174 to 50. Janson Nasrial, an analyst at Amcapital Indonesia, said news that the US Federal Reserve was considering quantitative easing, which increases the supply of money, caused commodity prices to rise and commodity producers to gain.

140 RI Police Officers Sent to Sudan
Up to 140 National Police Formed Police Unit (FPU) III personnel were dispatched to Darfur, Sudan, in efforts to help stabilize security in the city, and to strengthen bilateral ties between the two countries. The team, named Garuda V-D Contingent, would replace the 140 members of Garuda V-C Contingent who had been serving in Sudan since October last year, National Police deputy chief Comr. Gen. Jusuf Manggabarani said Wednesday. "This is the third contingent we have sent there. Darfur's people, as well as the UN and our government, have appreciated our performance. That's why we decided to send another contingent," Jusuf said during the dispatch ceremony at National Police Headquarters in South Jakarta.

Japan to Develop Six Economic Corridors in RI
Japan is expected to develop six economic corridors as part of its efforts to increase its investment in Indonesia, Chief Economic Minister Hatta Radjasa said. The minister said here on Tuesday that he would discuss with Japan its plan to develop the six economic corridors during his visit to that country on October 14-16, 2010. "The meeting in Japan would be attended by four to five ministers. This indicated that Japan considered the meeting as important where it would raise the investment plan on the six economic corridors," the minister said.

Indonesian Government Stripped of Power to Ban Books
In a landmark verdict, the Constitutional Court struck out a controversial law that gave the Indonesian Attorney General's Office the absolute power to ban books it deemed offensive. "The 1963 Law on Securing Printed Materials whose content could disrupt public order is against the Constitution," said Mahfud MD, the head of the court. "The law is no longer legally binding." Maria Farida Indrati, another justice, said the AGO did not have the right to ban books, suggesting that any decision to halt the publication and distribution of printed material rest with the courts, including providing avenues of appeal.

Parliamentarians Discuss Russian Offer to Build RI Nuclear Power Plant
Indonesian and Russian delegates on the sidelines of the Asia Parliamentary Assembly (APA) meeting here on Wednesday discussed a Russian offer to help Indonesia build nuclear power plants. The Russian side in the discussion was led by Yasev Valery and the Indonesian side by House of Representatives (DPR) Speaker Marzuki Ali. Also present was the chairman of APA`s executive council Hidayat Nur Wahid. "The Indonesian government has to try to convince the public that nuclear technology for power generation is safe," Hidayat said on the occasion.

Asian Parliaments Urged to Develop Democracy
Asian parliaments have been urged to develop democracy and not just safeguard it as democracy is deemed able to help bring peace, prosperity and progress. "I believe all APA member parliaments can play a role in safeguarding democracy and in helping it to develop, while becoming increasingly perceptive to national, regional as well as global realities," Marzuki Ali, President of the Asian Parliament Assembly (APA) said in remarks to open an APA executive council meeting here Tuesday. Marzuki Ali, who is also speaker of the Indonesian House of Representatives , added that as an institution with legislative power, APA`s role was not only limited to promoting the strengthening of democracy in the region, but it should also help to ensure that democracy and democratic processes do bring peace, prosperity and progress.

Aceh Bizmen Welcome Investment Summit
Business players in Aceh Province are expecting concrete results from the Aceh Investment Summit to be held here on November 22-25, 2010. "We positively welcome this international event initiated by the Aceh government but we are looking forward to concrete results for investment and business climate in the province," Aceh branch of Young Indonesian Businessmen Association (Hipmi) spokesman Fachrizal Murphy said here on Tuesday. He made the remark to comment on Aceh Investment Summit, the first ever forum in the province which is expected to be attended by representatives from some 35 countries.

LIPI Launches a Book on Biodiversity
To commemorate the World Food Day on 16 October 2010 and the biodiversity year, the Indonesian Institute of Sciences (LIPI) has launched a book on biodiversity and development. At the launching yesterday, Setijati said that Indonesia's Biodiversity is not used optimally yet. "We know Indonesia have biodiversity, but goes only so far," said Setijati. "We must have the capacity to explore and profit from this." Biodiversity, added Setijati, is the base of sustainable development.

Tuesday, October 12, 2010
RI Manufacturing Industry Grows by 4.3% in Q2
The Industry Ministry says that the country's manufacturing industry grew by 4.3 percent in the second quarter of the year compared to the same period last year, thanks to the steady performance of non-oil and gas manufacturing sector. Industry Minister M.S. Hidayat said Tuesday that non-oil and gas manufacturing sub-sector grew by 4.9 percent in the period, while the oil and gas manufacturing was down by 2.6 percent due to a 7 percent decrease in the country's natural gas production. "In non-oil and gas sub-sector, carrier, machine and component industries recorded a 12.2 percent growth, the highest in the sub-sector," he told a press conference at his office in Jakarta.

Booming Demand in Indonesia for Serviced Offices
Jakarta's serviced-office market is booming as more foreign companies enter Indonesia, attracting companies eager to invest in the sector. While still only a fraction of the market, the number of serviced offices on the market in central Jakarta has risen 50 percent in the past year and could rise a further 30 percent in the second half of this year, according to Jones Lang LaSalle Indonesia. Jones Lang LaSalle estimates there are 30,000 square meters of serviced office space, less than 1 percent of the total office market in the central business district. But property consultants expect the robust growth to continue along with Indonesia's economy. .

RI Has Potential to Serve As Rice Research Center: Hatta
Chief Economic Minister Hatta Rajasa said Indonesia had the potential to serve as a rice research center for Islamic countries grouped in the Organization of Islamic Conference (OIC). "We have the potential to become a rice research center for OIC members," the coordinating minister for economic affairs said here on Monday. He was explaining the results of his visit to Turkey recently.

RI Palmoil Production to Increase to 20.9 Million Tons
Indonesia expects its palmoil production this year to increase to 20.9 million tons or up from only 18.6 million tons last year. Agriculture Minister Suswono admitted here on Monday that the productivity of oil palm plantations in the country was still low at only 2.5 tons of crude palmoil per hectare. The productivity level was still far below that of Malaysia which could produce 16 million tons of CPO from four million hectares of plantations, he said. He said "Indonesia with 7.9 million hectares of plantations could only produce 18.6 million tons of CPO. Therefore this year it will be increased to 20.9 million ton."

Finance Ministry Official Named World Bank Director
Finance Ministry Inspector General Hekinus Manao has been elected as the World Bank's executive director for the East Asia-Pacific region. He is scheduled to take over the position at the bank's headquarters in Washington on Nov. 1, and will oversee 11 countries: Indonesia, Brunei, Fiji, Laos, Malaysia, Burma, Nepal, Singapore, Thailand, Tonga and Vietnam. "A star performer of high integrity within Indonesia's bureaucracy, Dr. Manao was nominated for the directorship by Indonesian Finance Minister Agus Martowardojo," the World Bank said in a statement.

Three BUMNs to Be Restructured to Revitalize Defense Industry
Indonesia plans to restructure three state-owned companies (BUMNs) involved in strategic industries in an effort to revitalize its defense industry. After attending a cabinet meeting here on Monday Coordinating Minister for Economic Affairs Hatta Radjasa said the three companies which are to be restructured are arms manufacturer PT Pindad, ship builder PT PAL and aircraft industry PT Dirgantara Indonesia. He said PT Pindad`s present condition was good while PT PAL and PT DI had capital problems due to a mismatch between the arrival of orders and financing from the state budget.

Indonesia Denies Flash Floods Caused by Deforestation
Indonesia denied on Tuesday that flash floods in the remote area of Papua that killed at least 148 people were caused by rampant deforestation. Forestry Minister Zulkifli Hasan said the flooding in West Papua province's Teluk Wondama district last Monday was caused by a natural dam bursting in the area after heavy downpours. "The dam was formed by landslides, and the landslides were caused by heavy rains and probably triggered by earthquakes," Hasan said. "Yes, there is logging in Papua. But the logging concessions are far away and not connected to the disaster area."

Friday, October 8, 2010
UNESCO to Declare Indonesia's Angklung World Heritage
Indonesia's traditional musical instrument, the 'Angklung' is soon to be officially declared a world heritage item by the United Nations Educational, Scientific and Cultural Organization, a minister announced on Thursday. "On Nov. 18, angklung will be declared a world heritage article, like batik [traditional fabric], wayang [Javanese traditional puppets], and the keris [ceremonial dagger] before," said Wardiyanto, secretary general of the Tourism and Culture Ministry. Getting the angklung included in the Representative List of the Intangible Cultural Heritage of Humanity has taken years, he said. "We plan to have more things of Indonesian culture recognized as part of the world's heritage."

US Supports People's Welfare Improvement Efforts in Papua: Envoy
United States Ambassador to Indonesia Scot Marciel said the US government strongly supports efforts to improve the people`s welfare in Papua. "We focus on three main problems, education development, conservation efforts and improvement of economic conditions. The US will try to sustain these three main programs so as to help improve the Papuam people`s welfare," Marciel said. The Us envoy and his retinue arrived in Timika from Jayapura on Thursday to observe activities related to programs funded by the United States Agency for International Development (USAID).

President: Good Relations Between Nations Imply Mutual Respect
President Susilo Bambang Yudhoyono said here on Thursday that good relations between countries also implied the upholding of mutual respect and appreciation by the two sides. Speaking before opening a limited cabinet meeting on political, security and legal affairs, the President said mutual respect in bilateral relations also included mutual respect between the leaders of the countries concerned. He made the statement in connection with his decision to cancel his scheduled visit to the Netherlands on Wednesday.

Indonesia Targets $3,000 Per Capita Income
Indonesia may reach a per capita income of 3,000 US dollars per year by the end of 2010 to boost its economic growth, a deputy minister said here Thursday. The state`s income target might be reached if a six to 6.5 percent national economic growth is reached by the end of 2010, Deputy Trade Minister Mahendra Siregar said. "The 3,000 US dollars figure is very important considering that Taiwan, Malaysia and Korea has experienced a rapid growth in gross domestic product per capita when they hit that level," he said.

Aceh to Intensify Tourism Promotion
Aceh Province will intensify promotion of its tourist objects by launching Visit Banda Aceh Year 2011. Culture and Tourism Minister Jero Wacik is expected to launch Visit Banda Aceh Year 2011 on October 19, 2011, according to Reza Fahlevi, head of the Aceh provincial cultural and tourism office, here Friday. The preparations for the launching have been made since a month ago, and Aceh Governor Irwandi Yusuf is expected to be present in the upcoming vent.

Indonesia Flood Toll Rises to 110: Official
The death toll from flash floods in eastern Indonesia has risen to 110 with bodies still lying unclaimed in the mud four days after the disaster, an official said on Friday. The remote seaside town of Wasior in West Papua province was devastated after a torrent of mud, rocks and logs struck it on Monday following torrential downpours. Hundreds of homes were swept away and scores of people remain missing feared dead, with rescue workers unable to clear huge piles of debris due to shortages of heavy equipment.

Thursday, October 7, 2010
US Ambassador Visits USAID-UNICEF Supported Midwifery Academy
U.S. Ambassador to Indonesia Scot Marciel on Wednesday visited Papua's main midwifery academy at the Jayapura Health Polytechnic and met students at the USAID and UNICEF-supported program. Students are training to improve maternal health in Indonesia`s easternmost province, the US embassy said in its website here on Wednesday. On his first trip to eastern Indonesia since arriving in the vast archipelago in August, the Ambassador discussed innovative ways to integrate antenatal care with malaria treatments, which have been funded by USAID since 2006.

Government Determined to Develop National Defense Industry
Defense Minister Purnomo Yusgiantoro said the government has been determined to continue to develop its defense industry. "The program will be elaborated in the Defense Industry Policy Committee (KKIP)," he said when opening the first KKIP meeting here on Thursday. He said "the main task of KKIP is formulating strategic national policies in the field of defense industry." Purnomo said KKIP is also assigned to coordinate the implementation and supervision of the national policy in the defense industry.

2011 Budget Deficit Raised to Support Subsidies
The government and the House of Representatives have agreed to increase the 2011 budget deficit by Rp 8.6 trillion ($963.2 million), with the money earmarked for energy subsidies and infrastructure development, a senior government official said on Thursday. Agus Supriyanto, interim head of the Finance Ministry's Fiscal Policy Office, said the deficit would be increased to Rp 124.3 trillion, or 1.8 percent of the GDP, up from the 1.7 percent proposed in the original draft budget. However, lawmakers and the government appear to still be at odds over energy subsidies, with the details to be worked out in talks to be held later this month.

US Concerned About Wasior Flood Disaster
United States Secretary of State Hillary Rodham Clinton has expressed concern about the flood disaster in Papua in which at least 60 lives were lost, tens of people injured and hundreds of others had gone missing. "On behalf of the people of the United States, I express our deep sympathy over the destruction and loss of life caused by the flooding and landslides in eastern Indonesia, particularly in the province of West Papua," she said in a statement released by the US State Department here Wednesday (Oct 6). The flash flood had inundated Wasior, West Papua, since Monday (Oct 4) and caused the loss of 64 human lives, seriously injured 91 people, lightly wounded 68 others and the disappearance of 451 residents. In addition, some 3,000 local people had to be evacuated to Manokwari and Nabire.

RI Questions Advanced Countries' Commitment to Climate Change Program
Indonesia is questioning the commitment of advanced countries to helping developing countries in adapting to climate change. The statement was made by the executive chairman of the National Council for Climate Change (DNPI), Rachmat Witoelar who is currently leading an Indonesian delegation to international negotiations on climate change in Tianjin, China, in a message received by ANTARA News here on Thursday. "Following increasing frequency of extreme climate phenomena and natural disasters that go along with them the Indonesian delegation is questioning the advanced countries` commitment to the adaptation action program in developing countries," he said.

Wednesday, October 6, 2010
President Sends Rp 2 Billion Worth of Logistics to Wasior
President Susilo Bambang Yudhoyono has sent logistical supplies worth Rp2 billion to Wasior, West Papua, to alleviate the suffering of flood victims there. "The President has sent aid to the flood victims," Coordinating Minister for People`s Welfare Agung Laksono said here on Wednesday. Agung said the President was very concerned about the disaster and therefore had sent the aid. The aid consists of clothes, blankets, medicines, food, mats, milk for under five children and other things.

JCI Continues Record Roll After Late Rally Blunts Profit-Taking
Indonesian stocks kept their impressive win streak alive on Wednesday, closing in record territory again thanks to a 13-point rally in the last five minutes of trading to offset sporadic profit-taking. The Jakarta Composite Index rose 11.71 points, or 0.3 percent, to 3,603.40, its ninth-straight record close. Volume was heavy, with 9.6 billion shares worth Rp 8.83 trillion ($989 million) traded. Decliners outnumbered gainers 132 to 89. Saiful Adrian, an analyst at Ciptadana Securities, said he saw more upside ahead for the JCI despite the recent gains, which have seen the index climb 17 percent in the past five weeks.

BI Keeps Key Rate At 6.5 Pct
Bank Indonesia (the central bank/BI) decided on Tuesday to keep its key rate at 6.5 percent for the thirteenth straight month. Bank Indonesia Governor Darmin Nasution said inflationary pressure was still on hand amidst rising foreign investment inflows and excessive liquidity funds. "The current BI rate is still consistent with the inflation target and remains conducive to financial stability. It also encourages the banking industry to play an intermediary role so the supply side can adequately respond to accelerated demand side," he said.

BI: RI Economy to Grow 6.5 Pct Next Year
Bank Indonesia (the central bank/BI) has predicted the Indonesian economy will expand by a range of 6.0-6.5 percent next year on the back of improving global and domestic economy. Domestic consumption would remain strong and export performance would increase along with the global economic recovery, Bank Indonesia Governor Darmin Nasution said here on Tuesday. The rising foreign investment inflows in line with strong domestic and global demand would also contribute to the economic growth next year, he said.

BI: Bank Credits Up 24 Percent in 2010
Bank Indonesia (BI) has estimated bank credit growth at 22-24 percent his year on businessman`s confidence in Indonesia`s economic prospects. The bank credits growth reached 21.2 percent up to September 2010, compared to that in the same period last year, according to BI Governor Darmin Nasution when announcing BI Rate here Tuesday said. "The working capital credits in 2010 grew higher than that of the consumption credits. In the future, the credit growth will still be targeted toward productive sectors," said the central bank`s governor.

RI, Germany to Intensify Relations in Education, Science, Technology
Indonesia and Germany are to intensify their relations in education, science and technology, chairman of the Hanns Seidel Foundation, Hans Zehetmair, said here Tuesday. "There is not enough cultural exchange between Germany and Indonesia. Yet there is great potential for intensified cultural relations through enhanced academic exchanges, integration of civil society organizations and increased access to each other`s language," he said at a seminar themed "Revitalization of Indonesia-German Relationship in Education, Science and Technology" in Jakarta.

President Asks Indonesian Armed Forces to Help the Police Fight Terrorism
President Susilo Bambang Yudhoyono asked the Indonesian Armed Forces to help the Police in fighting terrorism, the scourge and enemy of everyone. "The country must win the fight against terrorism," said Yudhoyono in his speech during the Indonesian Armed Forces' 65th anniversary commemoration yesterday at Halim Perdana Kusumah Air Force Base in Jakarta. Therefore, the President stressed, there should be a synergy between the Armed Forces and the Police. "All personnel in the provinces must be more active," he said. "We need the Armed Forces and Police's quick action."

Indonesia to Sell 60% of Oil Stock to Meet 2010 Revenue Target
In what analysts labelled a risky move, the government on Wednesday said it would sell about 60 percent of the nation's stock of crude oil by December to make up for lost revenue this year as national output looked increasingly likely to fall short of its target. Evita Legowo, director general of oil and gas at the Ministry of Energy and Mineral Resources, said the government planned to sell a total of 7.2 million barrels of crude oil from its stock by the end of November, including the three million barrels announced last month by upstream oil and gas regulator BPMigas.

Tuesday, October 5, 2010
JCI Continues Its Record-Setting Run As Bank Indonesia Holds Off Rate Hike
The Jakarta Composite Index closed at a record high for an eighth-straight day on Tuesday after the central bank left its key interest rate unchanged. The JCI advanced 22.2 points, or 0.6 percent, to close at 3,591.70. About 7.7 billion shares worth Rp 5.16 trillion ($573.1 million) changed hands. Gainers outnumbered decliners 142 to 72. The big gains in recent weeks have caused some analysts to warn of an impending correction. But Cece Ridwanulloh at Ekokapital Sekuritas said the stars were aligned for the JCI to see a significant rise to 3,900 to 4,000 by the end of the year.

BI Holds Rate Steady on Expectations That Inflation Will Stay Under Wraps
Bank Indonesia on Tuesday kept borrowing costs at a record-low 6.5 percent for a 14th month after inflation eased in September. The central bank expects inflation to remain within 4 percent to 6 percent this year. BI Governor Darmin Nasution said the rate was at a level consistent with the bank achieving its inflation target, but warned it could exceed 6 percent again this year.

Approach From Every Angle Needed to Prevent Terrorism, Ulema Says
An ulema of West Sumatra, Mas'oed Abidin, said on Tuesday the government needs to a have a multi angle approach to tackle the spread of terrorism in Indonesia. "Terrorism may be the rest of several people angry or dissatisfied with their surroundings. Social and political imbalance may also be another factor which contributes to the spread of terrorism in the society," said the ulema. He suggested the government to draw up a special curriculum on the concept of putting the country`s interest as first priority. Mas`oed said physical and economic development was not enough to security of a country against terror.

RI to Become Major Destination For Malaysian, Australian, Singapore Tourists
A survey conducted by Visa-Pacific Asia Travel Association (PATA) has shown that Indonesia will within the next two years become the most important destination for Singaporean, Malaysian and Australian tourists, a Visa Indonesia official said. Of the survey`s respodents, 29 percent were Malaysian, 18 percent Australian, and 15 percent Singaporean tourists, said Ellyana Fuad, country manager of Visa Indonesia here Monday. She said many of the foreign tourists said they believed Indonesia would be the most important destination for tourists from the three countries within the next two years, meaning Indonesian tourism was facing bright propects.

RI Calls For Nuclear-Free World On NAM's Behalf
Indonesia, on behalf of the Non-Aligned Movement (NAM), has called for the realization of a world which is free from nuclear weapons. "NAM States Parties to the NPT (Non-Proliferation Treaty) commend the efforts of the President of the 2010 NPT Review Conference, and consider that although imperfect, `Conclusions and Recommendations for Follow-on actions` of the Conference represent an outcome that can be built upon and further enhanced in the near future, to realise a world free from nuclear weapons," Hasan Kleib, Indonesian Permanent Representative to the United Nations, said at the General Debate on All Disarmament and International Security Agenda Items of the UN General Assembly`s First Committee here Monday (Oct. 4).

Government to Pay Out Rp600 Billion for Weapons System
The government has launched a domestic loan of Rp 600 billion through Bank Negara Indonesia to support Indonesian Military's funding for a weapons system. The government loan with BNI was signed by the Director General of Debt of the Finance Department, Rahmat Waluyanto, and the Managing Director of BNI Bank, Gatot Suwondo. The signing was carried out at the Finance Department Building Monday (4/10).

News Focus: Indonesia Has Coal Potentials to Replace Oil, Gas
Indonesia has large coal deposits that can be used as a cheap alternative energy to replace expensive fuel oils so that the government no longer needs to spend huge amounts of funds to subsidize state-owned electricity firm (PLN) which so far still uses costly oil to produce electricity for the people. However, most of Indonesia`s coal production so far is for exports and only about 25 percent is for domestic consumption. "Some of the coal production is exported so that supply for the need at home became small," Nurdin Tampubolon, deputy chairman of the House of Representatives (DPR)`s Commission VI for energy affairs, said recently.

Monday, October 4, 2010
Indonesia Stock Market Set for Another Record Close
Indonesia's Jakarta Composite Index advanced 39.93 points, or 1.1 percent, to 3,587.05 at the noon local-time break on Monday, set to close at a record. Adaro Energy, Indonesia's second-largest coal producer, rose 1.2 percent to Rp 2,075. Tambang Batubara Bukit Asam, the Indonesian state-owned coal producer, climbed 1.5 percent to Rp 20,050. Power-station coal prices at Australia's Newcastle port, a benchmark for Asia, increased 0.5 percent to $95.35 a metric ton in the week ended Oct. 1, rising for the second week in three.

Analysts Expect BI to Keep Interest Rates at Record Low
Bank Indonesia, which has said it was "confident" in the level of its benchmark interest rate, may refrain from raising borrowing costs as inflation slows, betting higher bank reserve requirements will contain price pressures. The central bank will leave the reference rate at a record-low 6.5 percent for a 14th-straight month, according to 15 of 16 economists surveyed by Bloomberg News, with the dissenter expecting a quarter-point hike. The decision will be announced in Jakarta on Tuesday.

Carbon Reserve Project Launched in Riau
Carbon footprint consultancy Carbon Conservation and Sinar Mas Group subsidiary Asia Pulp and Paper (APP) launched a project on Monday that aims to turn more than 15,000 hectares of pulpwood plantation concessions in Kampar, Riau, into a carbon reserve area. Multiple assessments have found that the peat reserve, or "dome", which was previously designated as a pulpwood plantation concession owned by PT Putra Riau Perkasa (PRP), is rich in biodiversity and needs to be conserved, Carbon Investment chief executive officer Dorjee Sun said. PRP is an APP supplier. The peat dome was expected to preserve significant amounts of carbon for at least 33 years, Sun said, but will require an initial investment of US$2 million (Rp 17.5 billion).

Government Continues Promoting Komodo Dragons
East Nusa Tenggara (NTT) provincial administration will allocate Rp 400 million in 2011 to promote the Komodo dragon as one of the 28 official finalists in the New7Wonders of Nature. NTT Culture and Tourism Office spokesman Ulbadus Gogi said here on Monday that the funds would be spent on the procurement of information technology equipment to support to promotion of the Komodo dragon. "There is no special fund allocation this year for the Komodo dragon promotion but in 2011 we will allocate Rp400 million," Ulbadus Gogi said.

US Envoy Offers Student Exchange Program to SE Sulawesi
The United States is opening the opportunity for university students from Southeast Sulawesi to study in the US for a doctorate in any subject through a student exchange program, US Ambassador Scot Marciel said here Monday. Marciel who was making his first working visit to Southeast Sulawesi since his arrival in Indonesia, spoke about study opportunities in the US at a meeting with Southeast Sulawesi Governor Syahrul Yasin Limpo. He said a US-Indonesia student exchange program was already being implemented successfully by the US consulate general in Sruabaya, East Java.

Some Countries Back RI's Bid For FAO Director General
A number of countries have expressed support for Indonesia's Indroyono Susilo`s bid for director general of Food and Agriculture Organization (FAO). The support surfaced during the Senior Officials Meeting of the 30th FAO Asia and Pacific Regional Conference (APRC) held in South Korea on Sept 27-29, Agriculture Minister Suswono said here on Sunday. "The support mainly came from ASEAN member states such as Thailand and Malaysia," he said commenting on the results of his recent visits to South Korea and China.

Malaysian Government Acknowledges Indonesian Migrant Workers' Services
The Malaysian government gave appreciation to the Indonesian migrant workers' contribution in the country's development. "We acknowledge their contribution to Malaysia's development, especially in the sectors of construction, plantation, and domestic workers," said Malaysian Deputy Foreign Minister A. Kohilan Pillay. The statement was made by the senator who is also the former Deputy Agricultural Companies and Commodity Minister at the event "Titian Muhibah Indonesia-Malaysia II". The event was held by the Indonesian Community in Malaysia Association (Permai) at the Hasanuddin Hall, the Indonesian Embassy in Kuala Lumpur on Saturday.

Friday, October 1, 2010
JCI Closes Blistering Week at Another New High
Easing inflation at home and encouraging economic data from China and the United States boosted the Jakarta Composite Index to a record close for a sixth consecutive day on Friday. The JCI rose 45.82 points, or 1.3 percent, to close at 3,547.12, its first close above the 3,500 level. Volume was heavy, with 6.7 billion shares worth Rp 5.01 trillion ($561.1 million) changing hands. Gainers outnumbered decliners 158 to 62. The JCI gained 4.4 percent on the week.

RI Now Economically Advanced Country: Taiwan Minister
Visiting Taiwan Economic Minister Yen-Shiang Shih said here Thursday Indonesia, along with Brazil, Russia, India and China, had become a new economically advanced country. Yen-Shiang who arrived here on September 29 for a two-day visit said Indonesia had bright economic prospects. "Its domestic demand economy has a low degree of trade dependence. The country`s export degree of trade dependence is only 38 percent and the degree of its export dependence is only 22 percent," he said at a press conference at Mulia Hotel, Central Jakarta. He said Indonesia's low inflation rate and interest rate, according to a research report by Nelson Research, was standing among the top in the world consumer confidence index.

Indonesian Businessmen Very Optimistic
The result of a survey carried out by Hongkong and Shanghai Banking Corporation (HSBC) Trade Confidence Monitor during the second quarter of 2010 has showed that businessmen in Indonesia are very optimistic, and the index is even the third highest after India and United Arab Emirates. The trust index in Indonesia is higher than other Southeast Asian countries. The global survey interviewed 5,124 exporters and importers in 17 countries from July 19 until September 1, 2010.

IDB to Disburse US$2.8 Billion
The Indonesian government and the Islamic Development Bank (IDB) are drafting a cooperation framework worth US$28 billion for 2011 to 2014. These funds are prioritized for the sectors of education and infrastructure through government-private company cooperation. The National Development Planning Ministry's Multilateral Foreign Funding Director, Dewo Broto, said the loan was the biggest commitment ever made by IDB.

RI Calls On Israel, Palestine to Resume Direct Talks
Indonesia has called on Israel and Palestine to resume their direct negotiations to "find solutions on all final status issues." Indonesia made the call in Foreign Affairs Minister Marty M. Natalegawa's speech at the 65th session of The United Nations General Assembly in New York on September 28. "Indonesia will also work tirelessly to ensure that the United Nations continues to discharge its historic responsibilities on the question of Palestine," Marty said adding that Indonesia welcomed and supported the resumption of direct negotiations between Israel and Palestine.

Certain RI Regions Already Have Direct Relations With New York
Indonesia-US relations should be enhanced through region-to-region contacts and cooperation such as already exist between New York and a number of regions in Indonesia, former Indonesian consul general in New York Tri Edi Mulyani said. Having recently concluded her assignment in New York, Mulyani made the statement at a debriefing session at the foreign Ministry here Thursday. "We have to strengthen cooperation, particularly in the economic sector by region-to-region contacts to increase bilateral trade and economic cooperation as a whole," she said.

Indonesia Renews Support for Iran's Nuclear Program
Indonesia has renewed its support for Iran's nuclear program for peaceful purposes and expressed readiness to contribute to settlement of the controversial issue. Foreign Affairs Minister Marty Natalegawa said after a meeting between President Susilo Bambang Yudhoyono and Iranian President Ahmadinejad's special envoy Alaeddin Boroujerdi on Friday that any country had an equal right to develop nuclear technology for civilian use. "Iran deems Indonesia as having a very independent view on Iran's nuclear issue and really expects that their explanation on the latest development on the issue will encourage Indonesia to keep playing constructive role in addressing the problem," Marty said the two-hour talk.

USAID To Enhance Access to Credit For Small Businesses
The United States Agency for International Development (USAID) on Thursday announced their collaboration with Standard Chartered Bank Indonesia on a loan portfolio guarantee agreement that will enhance credit access for small and medium enterprises in Indonesia. U.S. Ambassador Scot Marciel and Standard Chartered Bank Indonesia CEO Tom Aaker made the announcement at Menara Standard Chartered in Jakarta, according to the US embassy website. Under this agreement, USAID will provide a partial guarantee of qualified loans made by Standard Chartered to qualified Indonesian enterprises. These guarantees will facilitate sound investments that enable businesses to improve equipment, update technology, expand business operations and hire additional workers. The agreement is worth $19.2 million in potential portfolio loans and covers a five-year period until 2015.

US Government Praises W Sumatrans
The US government has praised the spirit of West Sumatrans for quickly normalizing their lives from the major impacts of the powerful 2009 earthquake. The US Consul General for Sumatra Stanley Harsha, said here Thursday the key to the West Sumatrans` success was related to their patience, values of humanity, and hope. Speaking at the opening of the Padang earthquake monument`s cover here, Harsha said the people of West Sumatra were mentally strong and patient. They did not panic so that lots of victims could be rescued during the emergency, he said.