Thursday, April 28, 2011
JCI Hits Another Record High On US Fed, Earnings Reports
Positive earnings reports and the US Federal Reserve keeping its interest rates low helped lift the Jakarta Composite Index to a second day of gains on Thursday. The US Fed left its key lending rate at a range of zero to 0.25 percent, where it has remained since December 2008. Its plan to stimulate the US economy boosted the appeal of higher-yielding assets elsewhere. "The result of the Fed's meeting benefited most global markets, especially those that have strong economic fundamentals and accelerating growth like Indonesia" said Ibrahim, general manager and senior analyst at Harvest International Futures. "A weaker dollar draws global investors to buy shares like commodities and finance in countries where their currency has strengthened against the dollar. This saw significant capital inflows come into the JCI today."

Indonesia 'Hot Spot' of Climate Change, President Says
Indonesia sits at the epicenter of global climate change and as such is central to the solutions that will determine the future, President Susilo Bambang Yudhoyono said on Thursday. In his keynote address on the opening day of the Business for the Environment (B4E) Global Summit 2011 in Jakarta, Yudhoyono challenged participants to come up with solutions that could propel the country and the global community toward a green economy. "Indonesia is a hot spot for climate diplomacy," he said. "It is time for us to think outside the box. It is time for us to think of solutions for the monumental tasks ahead." He said these tasks included feeding a fast-growing population, finding new sources of energy and dealing with climate change-induced natural disasters. He also said that with governments failing to come up with an agreement on tackling climate change, businesses should step into the breach.

Government Sells Global Bonds Worth $2.5 Bln
The government sold on Wednesday dollar-denominated bonds of US$2.5 billion to meet part of its financing target in the 2011 state budget. The bonds series RI0521 (INDO21-GMTN) were part of Indonesia`s global medium-term notes updated on April 21, 2011, Head of the Public Relations Bureau at the Finance Ministry Yudi Pramadi said in a statement on Thursday. "The total orders for the bonds are US$6.9 billion," he said. The 10-year bonds due on May 5, 2021 will be issued at a coupon of 4.875 percent and a yield rate of 5.100 percent on May 5. Yudi said the bonds were 2.76 times oversubscribed. Based on the types of investors, 70 percent of the orders for the bonds comes from asset managers, 24 percent from state banks, 3 percent from pension funds and insurance companies, and 3 percent from private banks.

President Yudhoyono Calls for Save-Electricity-Fuel Movements in Regions
President Susilo Bambang Yudhoyono has ordered all regional heads to join a movement to save fuel and electricity to support national energy resilience. "I hope all leaders in the central and regions can launch movements to save electricity and fuel in particular. If necessary, the regional administrations can issue regulations or use whatever instrument to ensure saving," the head of state said here Thursday when officially opening the National Development Plan Congress. He pointed out that the price of crude oil keeps on increasing. At the same time, Indonesia is still applying a policy to subsidize fuel and electricity using fuel. "The subsidy`s amount is huge, and if it continues to increase and out of control, it will affect our macro economic," he said. Too big subsidy will absorb the budget allocated for education, health, poverty eradication, and infrastructure development.

Rupiah Credit to Grow by 25 Percent
Loans in Indonesia are expected to grow this year compared to last year's. The credit ranking agency, PT ICRA Indonesia, predicted that credit will grow 23.5 percent or 0.7 percent higher than in 2010. "However, the volume of growth is not that different, because we are focusing on quality," said ICRA Indonesia Assistant Vice President, Haryo Koconegoro, in Jakarta yesterday. According to Haryo, the growth of loans will be supported by a faster growing rupiah credit of 24-25 percent, higher than last year's 21.5 percent. This will occur because of a better macroeconomic expectation, a stable rupiah currency and Indonesia's higher investment rating. However, the foreign currency credit is expected to decline because Bank Indonesia has increased the foreign exchange minimum statutory deposit to 8 percent this year.

Government to Build 40 Weather, Climate Change Monitoring Stations
The government plans to build 40 sea weather and climate change monitoring stations across the country by 2014, a Maritime Affairs and Fisheries Ministry official said. "The stations can be used to monitor situation in coastal areas across Indonesia, including an indication of climate change due to a change in the situation of waters," Tukul Rameo Ade, head of the technical service unit at the ministry`s research and development center, said at a function marking the launch of an Indonesia-China joint observatory station here on Tuesday. Rameo said Indonesia had since 2005 committed itself to make a global sea monitoring system whose devices would be installed throughout the archipelago`s waters. To date, Indonesia only had one weather and climate change observatory station incorporated with a lighthouse at Bungus coast in Padang, capital of West Sumatra province, he said. "The station in Padang is the first of its kind built in cooperation with China. In the future, we will several more stations in Java and Papua," Rameo who is also vice director of the Indonesia-China Center for Ocean and Climate (ICCOC) said.

Business Entities Must Play Role in Environment Preservation
President Susilo Bambang Yudhoyono said that all stakeholders in the business sector and components in business entities had a role to play in the preservation of the environment. He said before the Business Forum for the Environment here on Thursday that the government could not work alone to overcome climate change and prevent environmental damages. He said businesses could also play a role in the efforts. "To secure the climate in the future we need a huge scheme involving government policies, international cooperation, market players` initiatives, technological innovations, public participation and corporate cooperation," he said. "That is why you as industrial leaders could contribute significantly to the efforts. There is no need for you to wait for a multilateral agreement to be made to produce new agreements in the climate issue," he said. Citing an example he said businessmen in the technology industries could contribute by producing products without using fossil fuels while businessmen in the construction and design sectors could contribute by constructing buildings using green technology.

Government Encourages Environmentally-Friendly Businesses
Environment Minister Gusti Muhammad Hatta said the Indonesia Business Council for Sustainable Development should develop a partnership with the government. "It could also act as an internal controller," Gusti said during the establishment of an institution pioneered by six leading companies in Jakarta yesterday. According to Gusti, businessmen are authorities on sustainable development. The government, he added, envied the Indonesian Chamber of Commerce and Industry (Kadin), which has already established a council related to sustainable development. The council formed by the Asia Pacific Resources International (April), Garuda Indonesia, Medco Power Indonesia, BNI 46, Bakrie Telecom, and Holcim Indonesia is the Indonesian branch of the World Business Council for Sustainable Development, which is a collaboration of 200 major companies worldwide.

Thursday, April 21, 2011
Foreign Investment Climbs Nearly 12%
Amid a bumper day of positive economic news for the country, the Investment Coordinating Board announced that foreign direct investment in Indonesia rose 11.6 percent in the first quarter from a year earlier. News of the increase from the board, also known as the BKPM, complemented a standout day on the Jakarta Composite Index. The JCI rose 62.11 points, or 1.7 percent, to a record close of 3,794.76. Sustained confidence in Indonesia's economy showed as foreign direct investment rose to Rp 39.5 trillion ($4.6 billion) from Rp 35.4 trillion a year earlier, while domestic investment jumped to Rp 14.1 trillion from Rp 6.7 trillion a year earlier. "Investors' level of confidence can be seen here, especially after the central bank showed all the necessary statistics to support it and with rating agencies backing it up with improved ratings for Indonesia," said Azhar Lubis, deputy chairman of investment controlling and implementation at BKPM.

RI's Many Old Oil Wells Can Still Be Made Productive
Indonesia`s oil production can be boosted by reactivating the many old but still productive oil wells it has inherited from the Dutch but have been neglected so far, an observer said. "Out of the 13,824 existing old oil wells in Indonesia, only 745 have so far been reopened while the rest remains neglected," Sayogo Heru Prayitno, an oil and gas affairs observer at the Yogyakarta-based National Veterans` Development University (UPN), said here Wednesday. Speaking at a Focus Group Discussion on the topic "Spurring Oil Lifting from Old Oil Wells", Sayoga said the old oil wells were scattered across Indonesia, namely in Aceh, Riau, South Sumatra, Java, East Kalimantan, Maluku and Papua. The old wells might by now be located under school buildings, in forests or on privately-owned land so that obtaining permission from the owners of the locations to reactivate them could prove to be difficult, Sayoga said. Under Eenergy and Mineral Resources Minister`s Regulation No 01/2006,, Sayoga noted, regional administrations were authorized to reopen and manage old oil wells with funds from their regional budgets.

UNESCO Acknowledges 11 RI Cultural Heritages
The United Nations Education, Scientific and Cultural Organization (UNESCO) has acknowledged a total 850 sites as world cultural heritages, 11 of which are located in Indonesia. Culture and Tourism Minister Jero Wacik, in a prepared address read out by the ministry`s Director General of Art, Cultural and Film Values, Ukus Kuswara, said that the Indonesian world cultural heritages acknowledged by UNESCO included batik, wayang (shadow puppets), angklung and the prehistoric human site Sangiran. Some 689 cultural heritages out of the total 850 are on cultural aspects and 176 on natural aspects. Wacik says that there are no problems with batik because the youth and older generations have already worn them but for the traditional dagger Keris, only the older generations of Indonesians who use them as additional ornaments for traditional customs. The preservation of Keris as a cultural heritage, the minister adds, is not an easy task to do and becomes a certain challenge because the younger generation has not found it to their liking.

Rupiah Continues to Strengthen on Positive Regional Sentiment
The Rupiah`s exchange rate against the US dollar in the Jakarta interbank spot market on Thursday morning kept on strengthening due to continuing positive factors in the region. The rupiah appreciated 10 points to Rp8,630 per US dollar from Rp8,640 at the market`s close the day before. PT Bank Mega Tbk Retail Banking Director Kostaman Thayib said here on Thursday the continuing positive regional sentiment was able to re-boost the rupiah`s rate. "We have also predicted that the rupiah will strengthen again, because the positive factors are expected to continue," he said. Kostaman said the Rupiah was likely to reach the Rp8,600 per dollar level if the positive external factors continued to encourage active local market players to buy US dollars.

Kadin to Develop Rural Biogas
The Indonesia Chamber of Trade and Industry (Kadin) is certain the development of biogas energy will increase rural welfare. "The public could enjoy cheap energy," said Gunadi Sindhuwinata, the chairman of metal, machinery, electronics and transportation equipment sectors at Kadin, said in Jakarta yesterday. Kadin plans to develop biogas in a number of underdeveloped villages, such as Lembang in Bandung and other areas in Bali and West Kalimantan. Kadin will provide human resources, equipment and the capital to support the program. The program will involve all elements of the society, such as an environmental organization and academics. Gunadi said he hoped the government would play a significant role in the program. "Especially because quite a big fund is needed," he said.

SBY Agrees to Expand National Ideology Cirruculum: MPR
Amid growing radicalism in Indonesia, President Susilo Bambang Yudhoyono has reportedly supported the People's Consultative Assembly's call to extend the teaching of national ideology and the four pillars in school. "He [Yudhoyono] promised to follow up the idea, but we need to further discuss implementation," said Lukman Hakim, the deputy speaker of the People's Consultative Assembly (MPR), at the presidential office on Thursday. "MPR realizes that in almost all regions in the country, Pancasila and the four pillars have been forgotten. We need to refresh it." MPR believes there is a need to strengthen the o-called four pillars of the state: the Pancasila state ideology, the Constitution, national unity and the national motto, Bhinneka Tunggal Ika (Unity in Diversity). Lukman said that growing radicalism was the result of a lack of understanding of the national ideology.

Wednesday, April 20, 2011
Cash Transactions Increased 12% in 2010: BI
Bank Indonesia (BI) recorded a 12.1 percent increase in the amount of cash in circulation throughout 2010, which totaled Rp 274 trillion (US$31.51 billion), up from Rp 244.4 trillion in 2009. The increase was also greater than that of 2009, which was 10.7 percent above the figure for 2008. "Although growth was higher than in 2009, the average growth of circulating money in 2010 was still under the historical rates before the crisis, between 2005 and 2008, when it ranged between 13.5 percent and 26.3 percent," Bank Indonesia acting director for strategic planning and public relations Difi Ahmad Johansyah said in Jakarta on Tuesday. He added that the amount of money circulating was expected to continue to increase in 2011, along with projected economic growth of between 6 and 6.5 percent as of the end of the year.

US Housing Data, Sentiment Boost the JCI to Record Close
The Jakarta Composite Index reached a record high on Wednesday, breaking new ground as high expectations of revenue growth and faith in Indonesia's economic fundamentals helped attract significant capital inflows. "Global investors saw very good prospects in the shares on the JCI, along with stable economic fundamentals, manageable inflation and potential growth throughout the year. These give Indonesia an appealing investment climate," said Akhmad Nurcahyadi, an equity analyst at BNI Securities. The JCI rose 62.11 points, or 1.7 percent, to close at Rp 3,794.76. About 5.9 billion shares worth Rp 5.9 trillion ($684.4 million) changed hands. Gainers beat decliners 148 to 68. Astra Agro Lestari, the nation's largest listed plantation company, rose 1.8 percent to Rp 22,950. Palm oil futures gained for a third day, adding 1.1 percent to 3,290 ringgit ($1,091) per ton in Kuala Lumpur. Astra International, Indonesia's largest automotive retailer, gained 2.8 percent to Rp 55,150. Astra spokesman Mulawarman said on Wednesday that the company plans to increase its annual capacity by 33 percent to 200,000 vehicles.

USAID Assists RI Farmers Earn 370 Million Dollars
An assistance program of the United States Agency for International Development (USAID) called Agribusiness Market and Support Activity AMARTA), since 2006 helped Indonesian farmers produced an income of 370 million US dollars, said a spokesperson. "The program which costs 20.6 million US dollars has produced more than 370 million US dollars in sales by farmers in Indonesia," William Levine, the Head of AMARTA, said in a press conference here Wednesday. The AMARTA program, which was established in November 2006, focused on improving quality and productivity which were keys to increase the value of Indonesian agribusiness activities. AMARTA covered villages in five provinces in Indonesia, such as North Sumatera, West Java, South Sulawesi, Bali and Papua. Moreover, Levine said, the partnership was also aimed at making a success of the local and provincial administrations.

Inacraft Eyes 10% Increase in Revenue This Year
The organizer of the 13th Jakarta International Handicraft Trade Fair (Inacraft) is optimistic that revenue from the event will be 10 percent higher than last year's fair. Inacraft, which is an annual fair, last year recorded earnings of Rp 90.5 billion (US$10.5 million), a 6.4 percent increase from 2009. "This year - 2011 - we hope [the revenues] will increase by 10 percent," Rudi Lengkong, chairman of the Indonesian Handicraft Producer and Exporter Association (Asephi), the organizer of the event, said Wednesday, as quoted by kontan.co.id. He made the statement while officiating the 2011 Inacraft at the Jakarta Convention Center. Trade Minister Mari Elka Pangestu, who also attended the opening ceremony, said Inacraft had seen continually increasing values of trade deals inked at the event since it began.

Sail Indonesia 2011 Participants to Support Komodo
The participants of Sail Indonesia 2011 will support the world's giant lizard Komodo as one of the New7Wonders of nature. "Sail Indonesia organizing committee will sponsor the voting for Komodo by preparing supporting facilities for the sail`s participants who will support the world`s giant lizard as one the New7Wonders finalists," Yayasan Cinta Bahari Nusantara chairman Raymond Lesmana said here on Tuesday. He made the statement in relation to the momentum of Sail Indonesia 2011 and its input for Komodo as one of the New7Wonder finalists. "Besides in Kupang, all people of other districts in East Nusa Tenggara should make every effort to direct the Sail Indonesia participants to visit Komodo National Park," Raymond said. According to him, around 120 yachts from at least 20 countries which participate in Sail Indonesia 2011 will arrive in East Nusa Tenggara (NTT) provincial city of Kupang on June 11.

RI Ready to Hold ASEAN Summit
Minister/State Secretary Sudi Silalahi said here on Tuesday that Indonesia was ready to organize the 18th ASEAN Summit on May 7 - 8, 2011. The minister said preparations for the ASEAN Summit which would be held at the Jakarta Convention Center had basically been completed. The 18th summit of the Association of South East Asian Nations (ASEAN) will be attended by the heads of state of countries grouped in the ASEAN. ASEAN is composed of Indonesia, Singapore, Malaysia, the Philippines, Thailand, Brunei Darussalam, Cambodia, Laos, Myanmar, and Vietnam. Besides, heads of state of ASEAN friendly countries and leaders of international agencies will also attend the ASEAN Summit.

SBY Calls for Development Banks
President Susilo Bambang Yudhoyono has called on the Chamber of Commerce and Industry (Kadin) to submit a proposal regarding the establishment of the Indonesian Development Bank. This was in response to Kadin chairman Suryo B. Sulistyo who raised the importance of a bank that could fund infrastructure development. "If that is a solution, why not? If Kadin has a proposal, they can submit it," said the President at Bogor Palace yesterday, during a meeting with businessmen to draft a master plan to accelerate and expand Indonesia's economic development. According to Yudhoyono, the government and banking authority will study the proposal and if judged feasible, it will go ahead. Suryo said that infrastructure projects needed to be supported by long-term funding with low interest. "Kadin is preparing the concept for the bank establishment, which we will present soon," he said.

World Travel Market to be Held in May
The number of foreign tourists in Yogyakarta still depends on Indonesia's main tourism destinations, such as Bali. That is the reason the Yogyakarta government has tried to improve their tourism industry through a world travel fair or "Travelmart", from May 6 to 8. The Head of Yogyakarta Tourism Office, Tazbir, said that Yogyakarta is not as popular as Bali internationally. In general, foreign tourists go to Yogyakarta as their second destination after Bali or after Jakarta for business trips. "If the number of tourists in Bali drops, it will also decline in Yogyakarta. The same thing will happen if the number of visitors to Jakarta drops," said Tazbir, explaining the pattern of foreign tourists' visit to Yogyakarta, yesterday. Admittedly, Yogyakarta could not sell itself in the world tourism market yet. In addition to the lack of promotion overseas, there is also the absence of direct flights from the tourists' country of origin to Yogyakarta. They have to go either through Bali or Jakarta.

Tuesday, April 19, 2011
BI Predicts Surplus of US$16.4 Bln in Balance of Payments
Bank Indonesia predicts there will be a surplus of around US$16.4 billion in the country`s balance of payments that come from current, capital or financial transactions. "Although it is quite big it is still below that of 2010 that reached US$30 billion. However the achievement is quite high," BI deputy governor Ardhayadi Matroatmodjo said at a meeting with North Sulawesi provincial government officials, local bankers, members of the local chapter of the chamber of commerce and industry and real sector associations here on Monday. He said although surplus in the balance of payment this year would be lower than last year`s the country`s foreign exchange reserves would still continue to grow to reach US$112.6 billion up from US$96.2 billion at the end of 2010. He said the foreign exchange reserves could cover imports for 7.5 months, short-term debt payments as well as strengthen the country`s economic resilience to mitigate various external shocks that may happen.

Private Sector Ready to Invest $150 Bln in Economic Development
National private companies have expressed their commitment to invest Rp1,350 trillion (US$150 billion) in the country under a masterplan for acceleration and expansion of Indonesian economic development (MP3EI) until 2025. Chairman of the Indonesian Chamber of Commerce and Industry (KADIN) Suryo Bambang Sulisto made the commitment at a meeting between the government and the private sector at the Bogor Presidential Palace on Tuesday. He said the chamber came to the figure following a meeting among associations under the auspice of the chamber including the Indonesian Employers Association (Apindo), the Indonesian Builders Association (Gapensi), the Indonesian Automotive Manufacturers Association (Gaikindo), the Real Estate Developers Association (REI), the Coal Producers Association, and the Young Indonesian Businessmen Association (HIPMI). "From the notes we have received at this moment, we commit ourselves to invest Rp1,350 trillion or about US$150 billion," he said. The figure was likely to increase because it excluded investment from small and medium businessmen who were made up of 90 percent of the Indonesian businessmen, he said.

BI: Stability of Indonesia's Financial System Maintained
The stability of Indonesia`s financial system, especially banks, has remained well-maintained, a central bank official said here on Monday. "The banking system in Indonesia is maintained well while the function of intermediary and liquidity keep improving," Bank Indonesia deputy governor Ardhayadi Mitroatmodjo said at a meeting with North Sulawesi provincial administration, banking, chamber of commerce and real sector associations officials. He said the national banking industry was quite stable now marked by the conditions of the capital and liquidity which were maintained well as shown by their high capital adequacy ratio (CAR). "The CAR of national banks is at 18 percent level while their gross non-performing loan remains below five percent," he said. BI requires banks to keep their non-performing loans at maximally five percent and so with their NPL now at below five percent it means the banks are able to keep the rate of problem loans below the worrying level, he said. The banks` intermediary role is also improving reflected by credit growth which is increasing this year compared to last year, he said. "Year-on-year credits have risen 25.1 percent. What is interesting is the growth happens in all credit types including credit to the micro, small and medium businesses," he said.

Economic Investment Needs Rp 3.35 Trillion
Coordinating Economic Minister Hatta Rajasa said investments for six development corridors would require Rp3.35 trillion until 2014. Private companies are expected to contribute the largest portion of 44 percent or Rp1.474 trillion, he said yesterday. The rest of the funds will be drawn from the government, state-owned enterprises and foreign investors. Hatta said half of the fund, valued at Rp1.55 trillion, would be directed to infrastructure investments. Each corridor has a particular target. In Sumatra, for example, the focus will be on palm oil, rubber, coal, steel iron and the Sunda Strait bridge that connects Java and Sumatra. The Java corridor covers the manufacturing industry, textile, machinery and transportation.

Government Incentives for Upstream Investment
The government will prepare incentives for Chinese businessmen investing in upstream industries to reduce Indonesia's dependency on imported raw materials. However, Coordinating Economic Minister Hatta Rajasa has not confirmed what incentives will be given. An incentive could be given in the form of a tax break. Industry Minister M.S. Hidayat said a tax break could support the construction of a raw material factory. So far, the majority of the industry's needs are met by imported products. In the textiles industry, for example, cotton is imported from China. The industry is facing trade deficits with China due to the lack of cotton from Indonesia. This January - February, cotton imports from China reached US$108.62 million, up from US$ 61.6 million last year. The sector has voiced concern over its flagging revenue following the ASEAN-China free trade agreement which was implemented last year.

RI to Send Medical Nurses to Sudan
Indonesia will send a total of 120 medical nurses to Sudan to help patients in the country`s various hospitals, an official said. "At the initial phase, Indonesia will send 120 nurses to Sudan in the near future," said Indonesian Ambassador to Sudan Sujatmiko here Monday. According to an Indonesian national residing in Sudan, Suaib Tahir, the medical nurse sector in the East African country is at present dominated by Filipinos. Sujatmiko also said Sudan and Indonesia each had promising export potentials. Sudanese export potentials consisted of such commodities as crude oil, kosher meat, black seed (black cumin), Arabic gum , and Indonesia`s export potentials consisted of paper , building materials, electronic products, and hospital equipment, agricultural equipment, furniture and heavy-duty equipment.

TNI Chief: National Security Relatively Stable
National Defense Forces (TNI) commander Admiral Agus Suhartono said the security situation in the country was relatively stable despite several conflicts that had happened in the capital and several regions. "In macro-terms, security stability is being managed well although several issues still need to be addressed further," he said at a flag-raising ceremony here on Monday. In his written address read by his intelligence assistant, Major General Tisna Komara, the TNI chief said small conflicts in the regions could be localized and curbed quickly so that they did not affect national conditions. "The achievement and management of security stability is inseparable from the impact of leadership in the region that could synergize all security resources in the regions," he said.

As Incomes Rise, So Do Sales of Premium Goods, Nielsen Says
Lower- to middle-class households are buying more premium consumer goods thanks to rising incomes, and producers are changing strategy to accommodate the demand, according to a report from Nielsen that was released on Tuesday. "Manufacturers are breaking the barriers by making their products more affordable and increasing availability," said Venu Madhav, executive country director of client leadership at the global research giant. With this change in the behavior of these two segments, which make up the bulk of Indonesian consumer demand, the report said manufacturers were offering smaller packages of premium items, especially in the fast-moving consumer goods category, which accounts for relatively cheap mass-produced wares such as disposable diapers, shampoo and medications, as well as processed food items. Advertising spending has also risen as a result. Efforts to increase product availability and awareness reflect burgeoning per capita income, which jumped 29 percent to $3,005 last year from $2,327 in 2009, translating into consumers' willingness to spend on premium items.

Monday, April 18, 2011
RI Government Targets $200 Billion in Investments until 2025
President Susilo Bambang Yudhoyono said Indonesia will need more than US$200 billion in investment until 2025 to accelerate and expand economic development in Southeast Asia`s largest economy. The government had originally targeted the investment needs at US$100 billion but later revised upward the investment target to US$200 billion after state-owned companies pledged to meet US$100 billion of it, he said when opening a working meeting at the Bogor Presidential Palace on Monday. All ministers, governors, and a number of businessmen are taking part in the two-day meeting to discuss a master plan for the acceleration and expansion of the Indonesian economic development (MP3EI). "When state-owned companies revealed their investment commitment of US$100 billion to the floor at a meeting last February, we later revised upward the investment target to more than US$200 billion at that time," he said.

Indonesia's Coal-Bed Methane 'Revolution'
The entry of petroleum giants ExxonMobil, BP and Total into coal-bed methane (CBM) exploration, Indonesia's promising new frontier in natural gas development, looks likely to revive long-delayed plans for a Kalimantan-Java pipeline. French-owned Total, Kalimantan's largest conventional gas producer, continues to insist it does not have enough offshore reserves to meet overseas liquefied natural gas (LNG) contracts and supply piped gas to the domestic market as well. But following a trend in the five coal-mining states of the northeast United States, ExxonMobil and BP could well propel CBM exploration into the limelight - and boost conventional gas exploration as well. "This is a revolution, not an evolution," said veteran gas consultant Richard Fuller, who has lived and worked in Indonesia for the past 30 years. "CBM has the potential to give Indonesia the opportunity of becoming the region's lowest energy-cost economy."

Transactions in Indogreen Expo Reach Rp1.2 Billion
Spokesman for the Forestry Ministry Mashyud said the transactions that had been concluded in the third Indogreen Forestry Expo this year reached Rp1.2 billion. On each of the four-day (April 14 to 17) expo collected Rp300 million, Masyhud said after the conclusion of the event here on Sunday. He said the increase both concerned the number of participants as well as the transactions. Some 20 thousand people attended the expo, a 30 pct increase from last year`s, he said.

UNESCO to Name Saman Dance World Cultural Heritage
UNESCO is set to officially list the Saman Dance from Aceh as Intangible Cultural Heritage of Humanity in November. "The Saman Dance will be announced as intangible world cultural heritage by UNESCO on November 19, 2011," I Gde Pitana, Indonesian Culture and Tourism Ministry cultural and tourism resources agency head, said Monday in Jakarta. He said UNESCO's recognition of Saman added to numerous Indonesian cultural products already recognized by UNESCO as among world cultural heritage such as wayang (shadow puppets), keris (traditional dagger), batik textiles and angklung (a set of Sundanese musical instruments). Pitana said the announcement would be made at a ceremony in Bali, Antara reported.

RI Government Extends Newmont Divestment Process
The government has decided to extend the process of divestment of seven percent shares in PT Newmont Nusa Tenggara from initially set on April 18 to May 18 2011. The energy and mineral resource minister`s information and communication expert staff Kardaya Warnika said here on Monday the minister had already sent the decision letter to the finance minister. "The consideration for it is that more time is needed for processing the transfer of divestment shares and because of a demand from a third party that needs to be studied to avoid problems in the future," he said. Kardaja said the decision had also been informed to PT Newmont Nusa Tenggara and "they did not object to it," he said. This is the third extension after the one from December 18, 2010 to March 18, 2011 and the last from March 18 to April 18.

Balinese Dances to be Proposed as UNESCO's Best Practice
Balinese dances and two other Indonesian cultural features have been proposed as UNESCO`s Best Practices in Indigenous Knowledge 2011 after Batik for that category in 2010. The proposal of Balinese dances, Papua`s Noken and the Beautiful Indonesia in Miniature Park (TMII) for inclusion in UNESCO`s Best Practices on Indigenous Knowledge 2011 was announced by TMII Director of Operation Ade Meliala during the Pesona Budaya Indonesia 2011 at TMII, East Jakarta, on Sunday (April 17). The Pesona Budaya Indonesia (Indonesian Fascinating Culture) 2011 was attended by Badung Regent Anak Agung Gde Agung, Badung Regency Secretary Kompyang R. Swandika and some other officials and members of Badung Regional Legislative Assembly (DPRD). Some Indonesian representatives of UNCESO also attended the cultural event which highlighted some Balinese dances, such as Sekar Jepun, Oleg Tamulilingan and opera-like dance Jayantaka Pratidnya.

Basic Materials Dominate RI`s Imports from China
Trade Minister Mari Elka Pangestu said basic and industrial auxiliary materials dominate Indonesia`s imports from China as those materials are still needed by domestic industries. "We do import products which are not domestically produced but needed. The bulk of the imports from China consists of basic and supporting materials," Pangestu said. She added that should there be reports on the high rate of imports for consumption products that has weakened the competitiveness of local products, then the matter must still be proven. Pangestu said if the import is high, then we just need to see in particular which imports that causing loss. Should indeed there be direct relations between the import and the loss then we can implement the anti-dumping policies. Trade Ministry, she explained, will keep on avoiding the unfair trade practices resulting from the impacts of the free trade such as those products which are sold under their normal prices, excessive import volume and intrusion of products that are not in accordance with the Indonesian National Standard (SNI).

Friday, April 15, 2011
BII Offers Rp 600 Billion Worth of Bonds to Public
Bank International Indonesia (BII) is offering the first subordinated bonds to the public for a seven year term as of the date of issue at the fixed interest of 10-11 percent per year. BII Executive Director Ridha DM Wirakusumahsaid said here on Thursday the subordinated bonds were not guaranteed with special collateral, but with BII`s assets consisting of movable and non- movable goods. The proceeds of the subordinated bonds sale would be used to increase the bank`s productive assets in order to develop its business segment focused on Small and Micro Enterprises (SMEs), commercial and consumer banking, he said. Asked about the Rp600 billion subordinated bonds, Ridha said BII should be careful in taking measures in order to avoid problems. If demand for the bonds reaches more than 600 billion it would be discussed first with the BII management, he said.

Deputy Finance Minister: 2011 Economic Performance Improving
The government is optimist that Indonesia's economic performance this year will improve. There is a positive growth at the macro level during the first quarter of 2011, at the time when the global economy has not yet recovered. Deputy Finance Minister Any Ratnawati said that the improvement of domestic economic performance is also shown by Indonesia's improved debt ranking, according to a number of international rating agencies. This situation has lead to a cheaper cost of fund. "At the beginning of 2012 at the latest, we will reach an investment grade position," said Ani in her office yesterday. Ani noted the 0.32 deflation last March as the biggest event in the last 10 years. This has improved Indonesia's position. Exports in February amounted to US$ 14.4 billion, growing by 27.4 percent compared to last year's.

JCI Rises in Light Trade, Rupiah Sees Strong Gain
The finance and energy sectors pushed the Jakarta Composite Index higher on a slow Friday as investors waited on bigger catalysts to move the market. The stock benchmark gained 22.5 points, or 0.61 percent, to close at Rp 3,730.51. Volume was light with as many as 3.6 billion shares worth Rp 4 trillion ($460 million) traded. Advancers beat decliners 117 to 71. Frederick Daniel Tanggela, an analyst at Sucorinvest, said finance stocks gained after the central bank held its key interest rate at 6.75 percent this week, while rising commodity prices lifted energy producers. He said Friday's slow trading was a sign that the market was waiting for another mover after nearly all listed companies had released their earnings reports. Among the gainers was Adaro Energy, Indonesia's second-biggest coal producer, which climbed 1 percent to Rp 2,275 on news that it would import liquefied natural gas to meet burgeoning demand.

Indonesian Coffee Hits First Premium Since Mid-2010
Indonesian robusta coffee beans were offered at a premium to London futures for the first time since June 2010 because of tight supply after rain early this year damaged coffee cherries, traders said on Friday. The prospect of a relatively poor crop could mean the premium holding for some months, they said. Sumatra robusta beans Grade 4, 80 defects, were offered at a premium of $20 a ton to the July contract LRCc2 for shipment in May/June, or $2,499 a ton on a free-on-board basis in the main growing province of Lampung on Sumatra, traders said. "This year's main harvest is not very good because there was too much rain during flowering, hampering growth of coffee cherries," said a Jakarta-based trader. "This has pushed up robusta prices in Lampung to a premium of $20," the trader said.

RI, Egypt to Strengthen and Promote Democracy
Foreign Minister Marty Natalegawa during a visit to Cairo said Indonesia and Egypt agreed to establish contact to promote democracy. "Egypt believed that Indonesia has a successful experience in solving the political crisis in 1998. The sides therefore agreed to intensify mutual contacts in strengthening and promoting democracy in the two countries," Marty told the press at the Indonesian embassy in Cairo Thursday. The meeting with the press was made after Marty flanked by Indonesian ambassador to Egypt A.M. Fachir met with Egyptian Prime Minister Essam Sharaf and Egyptian foreign minister Nabil Al Arabi. The Egyptian foreign minister has expressed his readiness to visit Indonesia next month to attend the foreign ministers` conference of the Non-Aligned Block in Bali on May 23 to 27, 2011. "In the conference we will have a more extensive exchange of views in seeking a way out of crises, not only in Egypt, but also in the members of the non-aligned block," he said.

Tourism Minister Not Seeking "Right Of Reply" From "Time"
Culture and Tourism Minister Jero Wacik said he would not seek the right of reply from "Time" magazine for describing Bali as a "hell" for tourists in its April 7, 2011 edition. "If we seek the right of reply (from the magazine), it will only create the impression that we have a serious problem. So, we will just clarify (the matters) and, if it is necessary, we will invite Time journalists to Bali," Minister Wacik said in Nusa Dua, on Friday. Wacik said it would be better to invite Time journalists to see the situation of Bali tourism directly because "seeing is believing." In its April 7, 2011 edition, Time in an article titled "Holidays in Hell: Bali`s Ongoing Woes," reported that Bali was plagued by scores of acute problems that had degraded it as a famous tourist destination by the ever crowded traffic, garbage-tainted Kuta beach, uncontrollable construction of more hotels and shopping centers. "We will also launch an international campaign through international fora and media on Bali tourism which is not written by Time," Wacik said who refuting the alleged assumption that Bali is not anymore interesting for international visitors.

Global Brands, Indonesia Flair
It's hard to imagine Jakarta without Starbucks, LG and McDonald's. But there was a time, not so long ago, when none of them had any footing in this country. The first McDonald's in Indonesia opened in Jakarta's Sarinah building in 1991. While initially wildly popular, the Sarinah outlet has seen many ups and downs over the years, including a recent temporary closure. But since it reopened on Feb. 14, the fast-food outlet has been more popular than ever, with the premises often completely packed late into the night. "It's always full on the weekend," said Sukana Jaya, a graphic designer who was meeting up with friends at the restaurant. "But we still want to come here." Sukana said a big part of the venue's attraction was its new decor. "It's great. I really love it," he said. "From the outside, it doesn't look any different from all the other buildings in this area. But, on the inside, it's so warm and cozy."

Thursday, April 14, 2011
BI Projecting 2013 Economic Growth at Over 7.0 Percent
Bank Indonesia (BI) is projecting economic growth in 2013 to reach over 7.0 percent on the back of ever rising investments and agricultural productivity, an official of the central bank said. The optimistic projection on the Indonesian economy was conveyed by BI Monetary Policy Bureau S. Sugeng at a press conference to highlight BI`s Economic Report on Indonesia (ERI) 2010 here on Wednesday. Sugeng said the high growth would need to be followed up by a reduction in the country`s dependence on imported components so that the ensuing inflation trend could be curbed. "High growth usually is followed by high inflation due to the high ratio of imports. Thus, the supply side should be able to respond to the inflationary trends by improvement of infrastructure and rising productivity," Sugeng said. Sugeng however added that as long as the balance of payment remaining surplus, then the economy would not overheat as import still is lower than export.

Finance Minister Hails Central Bank's New Policy
Finance Minister Agus Martowardojo hailed Bank Indonesia (BI/the central bank)'s step to ban buyers of its certificates (SBI) from reselling them again in less then six months. The finance minister said on Wednesday that the BI policy would encourage investors to make their investment in the state treasury bonds (SPN) so that it would reduce the level of its returns. "We produce SPN and when it was auctioned yesterday, it turned out that its average price was one percent cheaper than that of the SBI. So this also creates efficiency for the state expenditures," the minister said. Agus said that if the matter continued to happen the yields of the state debentures (SUN) could also be offset. "Because we have SUNs with a total value of between Rp1,600 and 1,700 trillion rupiah, a reduction by one percent in its interest would help save on the state money," he said. As it was reported that BI has issued a new policy which bans SBI buyers, domestic or foreign ones, from reselling them during the six-month holding period. The policy was effective as of Wednesday, April 13 , 2011.

Indonesia Eyes Post on UN Green Fund Board
Indonesia dropped its candidacy from the committee on green climate funds to target a higher funding board post that would have final say on eligible climate fund recipients. Indonesia withdrew the candidacy of Edy Pratomo, the Indonesian Ambassador to Germany, from the list of nominees at recent climate-change talks in Bangkok. It paved way for the Philippines and Singapore to win the committee seats and represent ASEAN. "In return, the countries in ASEAN pledged to support Indonesia to sit on the green climate fund board to represent the region," Presidential special envoy on climate change Rachmat Witoelar told The Jakarta Post on Thursday. He said that Indonesia had proposed that the elected committee members allot more of the climate fund for adaptation.

Government Targets Rp 7 Trillion from Bond Sales
The government is seeking to secure Rp 7 trillion (US$812 million) from five series of SUN bonds it is set to offer in a bid next Tuesday. Finance Ministry director general for debt management Rahmat Waluyo said in Jakarta on Thursday that the funds secured would be used to help finance the 2011 state budget. The newly-issued SPN2011070 series and the re-issued SPN20120406 are discount bonds which will mature on Jul. 20, 2011, and Apr. 6, 2012, respectively. The re-issued FR0055 series are being offered with an annual yield of 7.375 percent and will mature in 2016, while the FR0056 series have an annual yield of 8.375 percent and will mature in 2026. Coupons for both series will be paid every Mar. 15 and Sep. 15.

Bumi Resources Minerals Eyes $515m Expansion In Indonesian, African Mining
Bumi Resources Minerals, a unit of Indonesia's top coal producer, has earmarked $515 million for capital expenditure in the next two years to develop its assets. "We are planning to spend $515 million to expand our various units in the mineral mining sector," Yuanita Rohali, chief financial officer and finance director at BRM, said on Thursday. BRM is a holding company Bumi Resources' non-coal assets. It does not do carry out any exploitation of its own, though it is developing a number of mining sites in Africa and Indonesia and is exploring other potential projects. It also holds a 24 percent stake in miner Newmont Nusa Tenggara, an Indonesian unit of the US mining giant that controls the lucrative Batu Hijau gold mine. Bumi Resources spun off BRM in early 2010, and the new company went public in December.

TNI Ready to Rescue Hostages in Somalia Militarily: Chief
National Defense Forces (TNI) Commander Admiral Agus Suhartono said the military was ready to send troops to Somalia to rescue the 20 Indonesian sailors being held hostages by pirates there if negotiations for their release fail. "The TNI is ready but the government is now opting to negotiate. If the negotiations fail, the TNI is ready to send troops," Suhartono told newsmen after officiating at a ceremony to dedicate the Seroja epigraph at the Seroja housing complex in Bekasi. The epigraph was made in remembrance of Indonesian servicemen who gave their lives in Operation Seroja, the codename for the TNI`s operations in East Timor in the late 1970s and 1980s. Regarding the possibility of mounting a rescue operation in Somalia, Suhartono said several options could be considered by the the TNI for freeing the 20 sailors being held hostage by Somali pirates.

Robot Contest Winners Granted Scholarships
The government is granting scholarships to Indonesian winners of a robot contest held in the US on April 9-10. The winners will also have the chance to continue their postgraduate studies at universities in Indonesia, said Education Minister Mohammad Nuh in Jakarta yesterday. Nuh promised to provide funding for research undertaken by the winning students. The entire robot team from Indonesia won in all categories of the "Trinity College Fire Fighting Home Robot Contest" contest held in Hartford, Connecticut, the US, this April. The teams were from the Bandung Institute of Technology (ITB) Yogyakarta's Gadja Mada University and the Computer University. The three teams competed in several categories and defeated teams from the US, China, Israel, Canada, Portugal and 41 other countries.

RI to Buy Golden Eagle Trainer Jets From South Korea
The Indonesian government plans to buy a squadron of T-50 Golden Eagle trainer jets from South Korea to replace outdated British-made Hawk MK-53s currently still being used by the Indonesian Air Force. The number of trainer jets to be procured from South Korea will be a squadron in accordance with the available budget, Defense Minister Purnomo Yusgiantoro told the press at the Vice-President`s Palace here on Wednesday. Purnomo announced the plan to purchase the new military hardware after attending a meeting on Indonesia`s chairmanship of ASEAN presided over by Vice-President Boediono. The meeting was also attended by Coordinating Minister for Political, Legal and Security Affairs Djoko Suyanto, Coordinating Ministers for People?s Welfare Agung Laksono and Foreign Minister s Marty Natalegawa, Finance Minister Agus Martowardoyo, Trade Minister Mari Elka Pangestu, Communication and Informatics Minister Tifatul Sembiring and Culture and Tourism Minister Jero Wacik.

Wednesday, April 13, 2011
Former Vice President, Mr. Jusuf Kalla, Attends NetPluss Meeting of the Club de Madrid and Gallup Roundtables in Washington, D.C. 13 - 14 April 2011
Mr. M. Jusuf Kalla, a former Indonesian Vice President, is in Washington DC to attend the Network of Political leaders United to Support Shared Societies (NetPluss) - one of the Club de Madrid Projects in which he is a member. Mr. Jusuf Kalla, along with other Netpluss members, gathers in DC on April 13 to share their knowledge and expertise to be available to the activities of the Shared Societies Projects. The Shared Societies Projects is part of Club de Madrid's initiative to support democratic development through the promotion of leadership, dialogue, diversity and social cohesion. The project underlines the role of leaders and society alike in promoting the value of diversity to create a peaceful and prosperous society.

BI Maintains Reference Rate at 6.75 Percent
Bank Indonesia (BI, the central bank) on Tuesday decided to maintain its reference rate at 6.75 percent as well as its tight monetary policy to control inflation which is under pressure from volatile food prices. The central bank's governor, Darmin Nasution, in a press conference held after a board of governors` meeting said the decision was taken in view of global economic recovery ahead which was improving as seen in upward adjustments of global economic growth projections by various international institutions. "Improving global optimism will cause improvement in the volume of global trading. This will positively affect demand for export products and help boost domestic economic growth," he said. The process of global economic recovery however is still facing risks of uncertainty due to the debt crisis in a number of countries in Europe and potential disruptions of production after the earthquake in Japan, he said.

Stock Market's Capitalization Increases 2.8 Percent
The Jakarta Stock Exchange (BEI) recorded that the market capitalization had risen 2.80 percent from Rp3,243.77 trillion at the end of 2010 to Rp3.34 trillion at present, its president director said. President Director of BEI Ito Warsito said here on Tuesday that the increase in the market capitalization was achieved in line with increase in the stocks composite index (IHSG) since late last year. He said that there were several indicators which generated the market capitalization, including the fact where the ratio of the gross domestic products (GDP) had reached Rp700 million. The other indicator is that the position of Indonesia has a rating of BB+ by the international S&P rating firm, a rate which was one level below countries appropriate as investment destinations. "The increase in the market capitalization could be reached because of the two indicators," he said. This could happen, he said, because Indonesia`s economic growth was expected to remain high in the future. The increase in the market capitalization was also supported by the growth of issuers and investors in the BEI and Indonesia`s economic growth.

Government Wants Best Step to Release Hostages :FM
The government is seeking the best possible step to free 22 Indonesian sailors held hostage by Somalian pirates since March 16, Foreign Minister Marty Natalegawa said. "Once again the government is obliged to ensure immediate release of our citizens. Therefore, various options and policies have been made to do so," he told the press at the Presidential Office prior to a cabinet meeting on Tuesday. Since the ship "Sinar Kudus" owned by PT Samudera Indonesia was hijacked and its crew members were taken hostage by the Somalian pirates, the government had prepared a number of steps including continued contact with the ship`s owner, he said. "Various options have been discussed. There has been communication between the ship`s owner and pirates. The ship`s owner is in constant contact with the government. We do hope the problem can be resolved as soon as possible," he said. One of the problems arising from the process of negotiating the release of the sailors was related to communication. After all, the government had committed itself to resolve the problem properly, he said.

Unemployment in Indonesia Has Declined: President Claims
President Susilo Bambang Yudhoyono states that unemployment has declined, as shown by employment statistics in the country. Yudhoyono said based on data from the Indonesian Central Statistics Agency, as of Aug. 10, 2010, the Indonesian labor force reached 116.5 million people of a population of 237 million people. "This means the labor force has increased by 2.7 million people compared to the previous year," the President stated during his speech at the tripartite and regional tripartite institution consultation meeting at the State Palace on Wednesday. Yudhoyono added that the number of employed people stood at 108.2 million people, or up by 3.3 million people compared to the previous year. "Thus, from the 2.7 million increase, as many as 3.3 million have been absorbed. This means that unemployment has declined. We must continue this trend," he said as reported by tribunnews.com.

RI to Share Family Planning Experience With International Community
An Indonesian delegation led by the head of the National Population and Family Planning Coordination Board (BKKBN) will share family planning experience with the international community in the United States. "An Indonesian delegation will attend the 44th session of the Commission on Population and Development in New York from April 11 to 15, 2011," BKKBN spokesman Uung Kusmana said here on Wednesday. He said that themed "Fertility, Reproductive Health and Development," the session of the Commission on Population and Development in New York would be attended by participants from 77 countries, grouped in the Partner Population Development (PPD) and the United Nations Fund Population (UNFPA). "On the occasion, head of BKKBN Sugiri Syarief will share family planning experience in population control in Indonesia with the participants from other countries in the meeting," Uun said. He said Indonesia`s family planning experience was expected to have a positive result on other countries who needed it.

Rupiah's Strengthening Not Yet Affect Competitive Edge: BI
Bank Indonesia (the central bank/BI) said on Tuesday the rupiah's current appreciation against the US dollar has not yet affected the competitive edge of the country's exports. Instead, the rupiah`s strengthening had been able to ease inflationary pressure caused by a rise in global commodity prices or imported inflation. BI Governor Darmin Nasution said the rupiah`s strengthening had shown an upward trend since March, fueled among others by the country`s balance of payments which saw a large surplus and foreign investors` positive perception of the country`s strong economic fundamentals. "The rupiah`s appreciation is also a response to Bank Indonesia`s policy to control inflationary pressures, particularly those caused by a rise in global commodity prices or imported inflation. By the end of March 2011 the rupiah strengthened by 3.47 percent to Rp 8,708 per US dollar," he said. He predicted the country`s balance of payments would still see a large surplus in 2011 and exports would grow substantially.

Jakarta Ranks 28th Among World Cities in 2020
A recent global survey shows that the world's well-off communities have ranked Jakarta as 28th among the world's top-40 major cities in 2020. The same survey, conducted by London-based property consultant Knight Frank, in cooperation with Citi Private Bank, places Jakarta at the 39th position in the 2011 ranking, a drop from 38th the year before. The survey asked the opinions of 5,000 respondents from 36 countries, all of whom have wealth above US$100 million each. "The main consideration [of why Jakarta is ranked 28th] is the economic and political stability. Jakarta has strong economic fundamentals," Knight Frank Indonesia senior associate director Fakky Ismail Hidayat said at a discussion in Jakarta on Wednesday. The local branch's senior research manager, Hasan Pramudji, meanwhile, said that the projected position increase was in line with projected developments of major cities in the Asia Pacific region.

Monday, April 11, 2011
Industrial Growth Expected to Exceed Economic Growth in 2014
The Industry Ministry has projected the average national industrial growth to reach 6.78 percent in 2014, higher than the economic growth forecast of 6.17 percent. "We hope the industrial sector will grow at a faster pace than the economic growth in 2014," Head of the Center for Climate Policy and Industrial Quality Studies (BPKIMI) at the Industry Ministry Arryanto Sagala said here on Sunday. Last year, the national industry grew by an average of 5.1 percent compared with the economic growth of 5.5 percent, he said. The ministry had targeted the industrial sector to expand at a range of 5.2-6.1 percent this year, or lower than the economic growth target of 6.3 percent, he said. To achieve the industrial growth target of 6.78 percent for 2014, the ministry would focus on developing six groups of priority industries, namely labor-intensive industry, small and medium industry, natural resources-based industry, highly growing industry (automotive and electronic industry) and special priority industry (sugar, fertilizer and petrochemical industry), he said.

RI Aims for Top Alumina Producer Role
Indonesia aims to become one of the world's top alumina producers as the country kicked off the construction of a factory specializing in alumina production in West Kalimantan on Monday. Industry Minister MS Hidayat said he was confident that the "Chemical Grade Alumina" project would make Indonesia the world's second largest alumina producer, especially as the government will also take over alumina producer PT Inalum from Japan in 2013. "Three years from now we'll no longer be an alumina importer," Hidayat said after the ceremony marking the start of the factory's construction, as quoted by Antara news agency. The factory will be run by PT Indonesia Chemical Alumina, in which 80 percent of the stake belongs to state-owned mining company PT Aneka Tambang and 20 percent by its Japanese partner PT Showa Denko.

Rupiah Touches Seven-Year High as Central Bank Tolerates Gains
Indonesia's rupiah advanced to its strongest level in almost seven years on speculation policy makers will tolerate gains to manage inflation rather than lift its benchmark lending rate tomorrow. Bank Indonesia will keep its reference rate unchanged at 6.75 percent, according to all 18 economists surveyed by Bloomberg. The central bank may allow the currency to continue its recent rally and is "monitoring" its appreciation, Bank Indonesia Governor Darmin Nasution told reporters in Bali on April 7. Consumer prices rose 6.65 percent last month from a year earlier, compared with an increase of 6.84 percent in February, according to official data released April 1. "Investors are expecting Bank Indonesia to keep its interest rate unchanged tomorrow and let the rupiah strengthen," said Lindawati Susanto, head of foreign-exchange trading at PT Bank Resona Perdania in Jakarta. "The prospect of faster growth this year, slower inflation last month, and the rating upgrade on Friday is also supporting the currency." The rupiah strengthened 0.1 percent to 8,643 per dollar as of 9:13 a.m. in Jakarta, according to data compiled by Bloomberg. The currency touched 8,637 earlier, the strongest level since April 28, 2004. The rupiah has gained 3.9 percent this year.

Government Urged to Free 20 Indonesians Held by Somali Pirates
A senior legislator called on the Indonesian government to make all possible efforts, including paying demanded ransom, to free 20 crew members of hijacked MV "Sinar Kudus". "The crew members are Indonesian citizens. Until this time, their fates remain uncertain after their vessel had been hijacked by Somali pirates last March," Theo L.Sambuaga said. Speaking to ANTARA here Saturday, Theo Sambuaga, Golkar Party`s deputy chairman, said the government should do its best to release the Indonesians on board of the Indonesian flagged-cargo ship. "The ship itself loaded Indonesian exported nickle so that its crew members can be said to be on a trade mission," he said. The ship was hijacked by the Somali pirates off the coast of East Africa on its voyage to Holland last March. Theo Sambuaga said the Indonesian foreign ministry needs to take an immediate action to release the crew members.

Indonesia Stocks: Bumi Serpong, London Sumatra, Sejahteraraya
Shares of the following companies had unusual moves in Indonesian trading. Stock symbols are in parentheses, and prices are as of the 4 p.m. Jakarta-time close. The Jakarta Composite index increased 4.03 points, or 0.1 percent, to 3,745.84, rising for a fourth day. PT Aneka Tambang (ANTM IJ), an Indonesian nickel and gold producer, advanced 1.1 percent to 2,400 rupiah. Gold climbed to a record as investors sought precious metals as hedges against accelerating inflation. Immediate-delivery bullion gained as much as 0.2 percent to $1,478.18 an ounce. PT Bumi Serpong Damai (BSDE IJ), a property developer, rose 1.2 percent to 870 rupiah. Bumi Serpong expects 4 trillion rupiah ($463 million) of sales this year, spurred by its BSD City project near Jakarta, Investor Daily Indonesia reported, citing President Director Harry Budi Hartanto. The company posted sales of 2.48 trillion rupiah in 2010, according to data compiled by Bloomberg.

Some Local Products Need Protection: M.S. Hidayat
Industry Minister Mohamad Suleman Hidayat said that some local products must be protected from the ASEAN-China Free Trade Area (ACFTA) and the government's policy. These products include textiles, footwear, electronics, wooden and rattan furniture, toys, machinery, steel, food and beverages and cosmetics. Based on the Industry Ministry's data, the import volume of these products has increased significantly. The damage to locally made products is indicated by the drop in production, sales, profit, and manpower. In terms of production, there was a 25 - 25 percent drop. Sales in the domestic market went down by 10 - 25 percent, while profit fell by 10 - 25 percent. As a result, there was a 10 - 25 percent reduction in workers. "Some companies have even shut down and converted from producers to assembling and packaging, such as the machinery industry," Hidayat said in Bandung on Friday.

Indonesian Air Force to Buy One Squadron of Fighter Training Jets
The Indonesian air force (TNI AU) will buy one squadron of fighter training jets from South Korea at a cost of US$ 400 million. As many as 16 aircrafts will be sent by 2012. "The normal shipment period is 18 months, but we have asked them to accelerate it," said Air Force Chief of Staff, Marshall Imam Sufaat, after the 65th anniversary celebration of the Indonesian Air Force at Halim Perdana Kusuma Airport, Jakarta, last Saturday. According to Marshall Imam Sufaat, the T-50 is compatible for the training of Sukhoi aircraft's pilots. The aircraft also has a similar capability as the United States' F16 planes, which can be used for light attacks. "Before using the Sukhoi, they will be trained to use that aircraft," The operational cost of training using Sukhoi is high. Imam explained that the program is part of the Minimum Essential Force long term policy to replace 30 years old aircrafts and over.

Friday, April 8, 2011
DUBES DINO PATTI DJALAL MELUNCURKAN LOMBA RANCANG DESAIN BATIK DI AMERIKA SERIKAT (AMERICAN BATIK DESIGN COMPETITION) WASHINGTON, D.C., JUM'AT, 8 APRIL 2011
Pada Jumat, 8 April 2011, Duta Besar RI untuk AS Dr. Dino Patti Djalal meluncurkan pelaksanaan Kompetisi Desain Batik Amerika (American Batik Design Competition). Tujuan diadakannya kompetisi ini adalah untuk menduniakan batik.

Sebagaimana diketahui, UNESCO, sejak tahun 2009, secara resmi telah menobatkan batik sebagai salah satu "Warisan Budaya Dunia" (the Representative List of the Intangible Cultural Heritage of Humanity) dari Indonesia.

Indonesia Debt Rating Raised, With Positive Outlook
Indonesia's credit rating was raised to the highest level in 13 years by Standard and Poor's, which cited the Southeast Asian nation's "resilient" economy and improving finances. The long-term foreign-currency rating was increased one level to BB+ from BB, with a positive outlook, the company said in a statement today. The rating, which was last increased in March 2010, is now one level below investment grade. "The rating upgrade reflects continuing improvements in the government's balance sheet and external liquidity, against a backdrop of a resilient economic performance and cautious fiscal management," said Standard and Poor's credit analyst Agost Benard. "Rating constraints include Indonesia's low per-capita income, structural and institutional impediments to higher economic growth, and relatively high inflation." Rising consumer spending is driving growth in the world's fourth-most populous nation, increasing pressure on policy makers to restrain price gains and protect purchasing power. Indonesia's economy grew at the fastest pace in six years in the final quarter of 2010, and the central bank has increased its benchmark interest rate from a record low to curb inflation.

JCI Gains For 3rd Day On Back of S&P News
The Jakarta Composite Index ended the week on a high, gaining 0.3 percent on Friday and 0.9 percent for the week as Standard & Poor's joined its peers in raising Indonesia's credit rating one notch below investment grade. Citing the country's "resilient" economy and improving finances, Standard & Poor's boosted Indonesia's long-term foreign-currency rating from BB to BB+ with a positive outlook. "Having Indonesia's credit rating almost touching investment grade made a positive contribution to the market," said Frederik Daniel Tanggela, an analyst with Sucorinvest Central Gani. "This sentiment may continue to push the index higher for the next few days." The JCI rose 11.23 points to close at 3,741.81, gaining for a third straight day. Volume was unusually heavy, with 29.8 billion shares worth Rp 19.7 trillion ($2.3 billion) changing hands. Gainers beat decliners 113 to 86. Sinar Mas Agro Resources & Technology, a unit of Sinar Mas Group, gained 6 percent to Rp 5,300. Palm oil for June delivery rose 1.1 percent to 3,365 ringgit ($1,113) per ton in Kuala Lumpur.

Rp 16.8 Trillion of State Budget Saved
Presidential instruction No.7/2011 on non-priority budget savings has yielded results. Since it was issued on March 15, the government has succeeded in saving Rp 16.8 trillion of the National Budget. The government will ask the House of Representatives' (DPR) approval for the savings plan. "I really hope that the DPR will have share the government's view in terms of efficiency and optimization," said President Susilo Bambang Yudhoyono at a limited ministerial meeting at the Presidential office yesterday. The president said that the money will be allocated for poverty eradication and as reserves to anticipate the rise of energy and global food prices. In the future, the government will also cut a bigger slice of the administration budget to be allocated for capital spending. Yudhoyono regretted the lack of optimum administration, efficiency and budget management. For example, he was concerned about excess spending for official trips and seminars.

President Asks Finance Ministers to Help Realize ASEAN Community
President Susilo Bambang Yudhoyono as the current ASEAN Chair in 2011 has called on the ASEAN finance ministers to prioritize the realization of ASEAN Community by 2015. In his opening speech at the 15th ASEAN Finance Ministers Meeting at the Bali International Convention Center (BICC), Nusa Dua, Friday, President Yudhoyono said the ASEAN finance ministers must take steps for financial service liberalization, capital market development, and capital flow management in the Southeast Asian region. The ASEAN finance ministers should also establish cooperation to draft a policy on customs among ASEAN member countries to implement ASEAN Single Window. "Another challenge is to draft a policy which could omit obstacles for the integration process and guarantee regional dialogs on this issue that could produce recommendations and concrete actions," the head of state said. ASEAN must be more united and competitive to play its role in promoting growth in the East Asia region, he added.

ASEAN Shouldn't Wait for Next Crisis: SBY
Susilo Bambang Yudhoyono has urged ASEAN economic policymakers to delve into matters critical to the advancement of finance cooperation within the region, and to produce tangible steps toward building a strong and sustainable economic community. In his opening speech marking the opening of the 15th ASEAN finance minister's meeting, in Nusa Dua, Bali, on Friday, Yudhoyono proposed three key priorities for ASEAN in 2011 in regard to these issues. The first priority, he said, is ensuring significant progress and the implementation of the ASEAN community. For ASEAN finance ministers this implies building on progress in financial services liberalization, capital market development and management of capital flows. The second priority is to be more cohesive and competitive in maintaining ASEAN's role as a driver for East Asia-wide regionalism and architecture.

Britain Interested in RI's 2025 Economic Corridor Development Project
Britain is interested in Indonesia`s 3025 economic corridor development project, Coordinating Minister for Economic Affairs Hatta Rajasa said here on Thursday. Through visiting Prince Andrew, Britain had expressed its interest in investing in the development project. After attending a limited cabinet meeting at the Presidential palace, Hatta said Britain wished Indonesia could give more information about the program. "I said that we have a 2025 vision to accelerate and expand our economic development. He was very impressed and invited me (to visit Britain). Pak (Mr) Hatta please come to Britain and explain to us more about it. I will arrange meetings with several ministers and business leaders there," Hatta said quoting Prince Andrew. Although no date had been fixed Hatta was optimistic when the expose was done i would attract British investors to invest in the country. When asked what sectors Britain is interested in he said Prince Andrew mentioned three namely infrastructure and capacity development and business certainty.

RI Provides Agricultural Training for Six Countries
Indonesia continues to reinforce the South-South cooperation by providing agricultural apprenticeships and training for Bangladesh, Fiji, Laos, Sri Lanka, Timor Leste and Comoros (East Africa), a senior official said. The trainings on fruit and vegetable post harvest technology for representatives from the five Asia Pacific countries and on apprentice program for Comoros are being held from April 7 to April 21 in Lembang, West Java, and from April 3 to May 27 in Jakarta, Lembang and Kuningan (West Java). Director General for European and American Affairs of the Ministry of Foreign Affairs Retno Marsudi said when opening the activities here on Thursday that the training and apprentice programs were carried out as part of Indonesia`s commitment to helping other developing countries in the agricultural sector. She said that the agricultural sector was Indonesia`s important soft power policy asset. In this case Indonesia has played an important role in facilitating experience-sharing process on agriculture through training, apprentice and the sending of experts to various Asian and African countries as well to the pacific and Africa over the last three decades.

IPB Researchers Develop New Process to Make Bio-Fuel
Researchers at the Bogor Institute of Agriculture (IPB) have successfully created the design of a system to make micro-algae as a raw material for bio-diesel from the liquid wastes of industrial farms, slaughterhouses and sugar industries. The micro-algae was developed as a raw material for making bio-diesel, a researcher at IPB`s Agro-industrial Technology Department, Prof. Suprihatin, said here Thursday. She had done the research with her colleagues, Dr. Muhammad Romli and Ir. Ismayana Andes, MT. "The conversion of food into energy could lead to food insecurity, so that a strategic step is needed to develop and optimize the role of agriculture as a supplier of energy or bio-fuel without sacrificing food and the ecological balance," Suprihatin said. Micro-algae has several advantages compared with other crops, such as high productivity due to rapid growth rate that is only in hours or days, do not require fertile land so it does not compete with food crops.

Indonesian Air Force Projects 10 Fighting Squadrons
The Indonesian Air Force is projecting to improve its military force by 2025, but the plan is hampered by budget issues. Although it has tried to improve the budget, the increase has not been significant. Indonesian Air Force expert staffer Marshall Parulian Simamora, said the target was to have 10 fighting squadrons, 7 carrier squadrons, 1 VIP/VVIP squadron, 3 strategic spy squadrons, 6 helicopter squadrons, 4 training squadrons, 1 tanker squadron, and 1 PTTA squadron and military equipment by 2025. In 2011, the Indonesian Armed Forces was given a Rp44 billion budget, while the Air Force was given Rp7.4 trillion, Rp4.2 trillion of which was used to improve existing military equipment. Which such budget, the military hopes the national industry can maximize the development of the military and defense equipment industry. Indonesian Air Force chief of staff Marshall Imam Sufaat said a strong local defense industry could reduce dependency on foreign aid.

Wednesday, April 6, 2011
Government Raises Rp 7 Trillion From Bond Sales
The government raised Rp7 trillion in funds from the sale of state bonds in an auction on Tuesday. Director General of Debt Management at the Finance Ministry Rahmat Waluyanto said in a statement the government received Rp26.03 trillion bids for the bonds. The bonds put to the auction were series SPN20110706 and SPN20120406, both of them new issues, and FR0053, FR0056, and FR0054, all of them the reopening of existing issues. The Rp7 trillion consists of Rp2 trillion from series SPN20110706, Rp0.95 trillion from series SPN20120406, Rp1.35 trillion from series FR0053, and Rp2.70 trillion from series FR0056. The bonds series SPN20110706 due on July 6, 2011 are issued at a weighted average yield/price of 5.02 percent, while the bonds series SPN20120406 due on April 6, 2012 are issued at a weighted average yield/price of 6.07 percent.

Big Investors in Indonesia to Get Tax Breaks
Indonesia is set to unveil a tax holiday scheme for large investors as early as next week, officials say, as the country ramps up efforts to woo manufacturing and infrastructure investment. The first beneficiary of the incentive is expected to be South Korean steelmaker Posco, which inked a US$6 billion (S$7.6 billion) deal with state-owned Krakatau Steel last year. Their venture is an integrated steel mill in West Java, which will create more than 200,000 jobs and is likely to be operational by end-2013. Details of the tax holiday have not been released, but recent comments by invest-ment officials indicate that investors could receive a tax break of between five and eight years after they turn a profit. The tax holiday will be granted selectively, to companies which create jobs for locals, bring in new technology, and preferably set up shop in less developed areas.

US Firms See Investment Potential in Agriculture
US companies, eager to tap into Southeast Asia's fastest growing economy, are exploring business opportunities in Indonesia's agricultural sector. A total of 19 large US firms, taking part in the four-day Agribusiness Trade and Investment Mission in Jakarta until Thursday, have expressed interest to invest in agriculture here. The United States is one of the biggest investors and trading partners for Indonesia, but the bulk of its investment is in the natural resources and manufacturing sectors. The country's imports from Indonesia - besides manufactured goods - includes commodities as well as textiles and their products. "We are here to build a relationship. Hopefully we will get real trade going," said Michael Scuse, the US Department of Agriculture's acting secretary for farm and foreign agricultural services.

Ujung Kulon National Park's Success Draws International Attention
The success of the Ujung Kulon National Park (TNUK) center in managing and utilizing the area as well as empowering of communities around the forest has drawn the attention of the international community, a local official said here Tuesday. Recently, the officials from Cat Tien National Park Vietnam visited TNUK to learn how the management and the utilization of the national park area, head of Ujung Kulon National Park Pandeglang, Agus Priambudi explained. "Our efforts in maintaining and utilizing Ujung Kulon National Park is considered successful, so that park managers from Vietnam are interested to learn," he added. The officials from Cat Tien Vietnam, in addition to discussion with the TNUK center officials also visited the national park area to see conditions in the field.

Chevron to Develop Geothermal Electricity
Yanto Sianipar, Vice-President for Policy, Government and Public Affairs of Chevron Indo-Asia Business Unit, said that his company was exploring the possibility of increasing the capacity of their geothermal power plant. "We are evaluating the possibility of increasing the capacity of the bloc we are operating," he said in Bandung yesterday. But Yanto was reluctant to divulge more information because the issue was still being studied . Chevron is currently supplying almost 60 percent of Indonesian geothermal energy, including from its power plant in Mount Drajat, Garut, which supplies 259 MW and a 377 MW power plant to the Mount Salak. Area.

RI Wants to be 'Global Center' for Halal Food
The Indonesian Ulema Council (MUI) is set to make Indonesia a global center for halal food products, saying it can help support the country's tourism as many visitors come from the Middle East. "Eating halal food should start in the country with the largest Muslim population," MUI's food, medicine and cosmetics analysis body (LPPOM) head Lukmanul Hakim said Wednesday in Jakarta. He made the statements while addressing a seminar titled "The Availability of Halal Culinary Products to Support the Success of Visit Indonesia". Lukmanul said LPPOM MUI would organize the Indonesia Halal Exhibition from June 24-26 in Jakarta to support the goal, adding several countries were expected to participate in the event.

Indonesia Appeals for International Help to Save Borobudur Temple
Indonesian preservation experts have issued a call for international financial assistance to help save Borobudur Temple, Antara is reporting. The world heritage site, which includes the Mendut and Pawon temples, suffered severe damage during last year's Mount Merapi's volcanic eruptions, which claimed 322 lives. Besides the human toll, the thick, acidic ash that now blankets the temples continued to pose an ongoing threat to their preservation, Antara reported on Wednesday. When diluted with water, the acidic ash, which also contains hyaline (a glass-like substance), reacts with the stone, including the famed relief carvings and stupa, accelerating corrosion of the surface. "This potential and inevitable damage if not mitigated very soon constitutes a significant threat to the outstanding universal value of the three temples," Antara reported.

Tuesday, April 5, 2011
Democracy: The Indonesian Experience
As a country that has experienced various forms of democracy, Indonesia knows about the struggle between theory and practice. However, Indonesia today is far from a state of struggle. Rather, after India and the United States, Indonesia is rapidly securing a place in the realm of great, emerging democracies. It was at the Bali Democracy Forum in 2008, sponsored by Indonesia and Australia, that more than 30 countries came together to exchange ideas on how best to consolidate democracy. Humble about its successes and shortcomings as a young democracy, Indonesia was quick to promote greater political cooperation with its neighbors, while expressing determination to do what needed to be done at home. The forum today is alive and kicking with more than 70 countries participating.

Turkey, Indonesia Call for Ceasefire in Libya
Turkey and Indonesia on Tuesday called for a ceasefire in Libya and promised to help rebuild the country, as rebels and government forces battled for key eastern cities under a UN no-fly zone. The call came after Muammar el-Qaddafi's regime on Friday rejected an opposition offer of a truce provided his forces ended their assaults on rebel-held cities. Turkish President Abdullah Gul said it was time to "stop the bloodshed", following talks in Jakarta with Indonesian President Susilo Bambang Yudhoyono. "We discussed this issue... to stop the bloodshed in Libya. Infrastructure should not be destroyed," he told a joint press conference at the state palace, according to an Indonesian government translator. "It is not possible to have a closed regime [in Libya] ... Democracy will come to this region and people in Libya should not suffer anymore."

SOE Targets 6.6 Million New Jobs
The State-owned Enterprises (SOE) Ministry is targeting the creation of 6.6 million new jobs from Rp836 trillion in investment expected over the next three years. The investment is being made by 26 SOEs that are members of the Indonesian Economic Development Acceleration Master Plan, SOE Minister Mustafa Abubakar said yesterday. The ministry has planned projects in six economic corridors, including in the insurance, banking, telecommunications and infrastructure sectors. According to Mustafa, a large number of the projects will be located in eastern Indonesia. "In the future, if possible, it should be 50-50, transportation and infrastructure in particular will be focused in eastern Indonesia," he said. Most of the projects will be carried out by Pertamina, Telkom, SOE banks and Aneka Tambang. Mustafa also touched on infrastructure development in Halmahera. The project by PLN and Pertamina includes the construction of an LNG gas terminal. In Papua, PLN and Hutama Karya are developing a port in Sorong and the cement industry.

Pertamina EP to Produce 140,000 Barrels of Oil Per Day
Oil and gas firm Pertamina EP will produce 140,000 barrels of oil per day (bopd) in the second semester this year in an effort to meet the average target of 131,000 bopd this year. At present, Pertamina EP only produces 123,000 bopd as its activities have been disrupted by rainy weather. Pertamina EP's acting operational director Tony Harisman said Pertamina expected to drill 155 wells this year, but so far it could only realize 25 wells in the first quarter. "Those wells will start producing oil by the end of this year," he said as quoted by kontan.co.id. He was optimistic that Pertamina EP would meet the output target this year, citing that Pertamina EP had increased oil production in Sanga-Sanga Tarakan oil fields from 4,300 bopd to 7,505 bopd and Rimau oil field from 6,000 bopd to 9,678 bopd.

W Java to Explore Eleven Geothermal Spots
The West Java provincial administration plans to conduct geothermal explorations in eleven points in West Java, Governor Ahmad Heryawan said here Tuesday. The provincial administration was now conducting a preliminary survey at the eleven locations. Heryawan said the potentialw of the eleven points exploration of the geothermal energy were quite large. As a first step, now the West Java provincial administration was currently conducting the geothermal pre-exploration at three points, namely in Papadayan, Cermai and Gede Pangrango mountains. "For the mining working area at the three points will soon be tendered," the Governor said.

RI Stresses Importance Of ISO in FTA
Indonesia has stressed the importance of applying International Organization for Standardization (ISO) to the implementation of Free Trade Agreement (FTA) in a number of regions including ASEAN. The country conveyed the view at the meeting of ISO DEVCO advisory committee held in Switzerland on March 29-30, the National Standardization Board (BSN) said in a press statement issued on Monday. ISO was important in terms of providing inputs to make guidelines for developing countries to take a number of steps needed in the standardization process related to relations among regional groupings and between regional groupings and a number of strong partner countries, the Indonesian delegation to the meeting said. In the context of ASEAN, the strong partner countries included China, India, Australia, New Zealand, South Korea, and Japan, the release said.

News Focus: Indonesia, Turkey Could Lead Democracy in Muslim World
This upcoming 4-7 April, President Abdullah Gull will conduct a state visit to Indonesia reciprocating the President of Indonesia's working visit to Turkey in July, 2010 to Ankara and Istanbul. The state visits of the two leaders of Muslim majority countries hold a special meaning for the Muslim world, recalling that the two nations are known for fostering a national way of life that promotes democratic values while also retaining Islam values; such is the case where social progress has become pertinent especially now when we observe the waves of reforms and changes occurring in the Muslim world, specifically in the Arab and northern African region. Both Indonesia and Turkey having successfully implemented the democratization process have also boasted significant economic progress despite the global shocks of an economic downturn worldwide. Both Indonesia and Turkey are prominent members of the G20, the Organization of Islamic Conference (OIC), and the Developing 8 Countries for Economic Cooperation. Both countries have been visited by the President of the United States of America, Hussein Barrack Obama which serves as testament that Islam and democracy need not be in conflict to one another.

Monday, April 4, 2011
RI Partner For US in Reducing Unemployment: US Official
The United States believes that Indonesia is the right partner in reducing unemployment in both countries due to impressive economic growth rate, an official from the US Department of Commerce International Trade Administration said here Sunday. "The economic opportunities in Indonesia are very strong because your country has a growth rate which is impressive and also the people who are eager to learn and work hard," Francisco J. Sanchez, the Under Secretary of Commerce for International Trade, said here after opening the education exhibition in Jakarta. Sanchez said that to support the potentials which were owned by Indonesia, investment of education was the possible way to be applied in the country. "No country in this world can be successful economically without investing in education. And I am very optimistic because the commitment to education makes your country keep growing with the economy," he said here Sunday.

RI, US Strengthening Partnership Through Education
Indonesia and the United States are further strengthening their relationship by holding an education exhibition in collaboration with ACCESS Education Beyond which was opened here by US Ambassador Scot Marciel. "Education is a top priority and therefore, the US Embassy wants to see more Indonesians studying in America and also more Americans studying in Indonesia," Marciel said in his remarks opening the exhibition here Sunday. He said education was also one of the strengths of the partnership between Indonesia and the US. "We want more people from both Indonesia and the US to work and study in each other`s country because they will play a crucial role and become pillars for the bilateral partnerships," he said. Moreover, he added, by studying in America, Indonesians would be more able to contribute to the success of Indonesia.

State Firms to Put Rp 836t Toward Development Plan
As state-owned firms try to boost investment and participate in the economic corridor scheme, State Enterprises Minister Mustafa Abubakar claims the country could add 6.6 million new jobs in the next four years as a result. Mustafa said in February that his ministry set higher capital expenditure targets for state firms, raising it to a total of Rp 836 trillion ($96.1 billion) from Rp 383 billion. State firms are also expected to contribute to the government's economic corridor plan. "We are optimistic we can create those jobs," Mustafa said on Monday. He said spending from 26 large state companies is expected to help the government with its master plan and create more employment. Indonesia needs to boost development of infrastructure such as roads, airports and seaports to create more jobs and achieve the government's 7 percent economic growth target by 2014. According to Central Statistics Agency (BPS) data, 8.3 million Indonesians - 7.14 percent of the nation's 116.6 million-strong labor force - are informally employed.

26 State Enterprises to Handle Six Economic Corridors
The government said on Monday it had appointed 26 state-owned enterprises to implement six economic corridors declared by President Susilo Bambang Yudhoyono. State-Owned Enterprises Minister Mustafa Abubakar said the implementation of the economic corridors would be led by state-owned oil and gas firm Pertamina, telecommunication firm PT Telkom, state banks, and state-owned mining firm PT Aneka Tambang. He added that among of the economic corridors' priorities was developing East Indonesian infrastructure and transportation to connect all islands. "We have state-owned enterprises operating in those fields. So we just need to create activities in East Indonesia," he said, as quoted by kontan.co.id. For example, he said Pertamina and state electricity company PT PLN had built a gas receiving terminal in Halmahera, North Maluku.

United States Companies Eye Railways, Airports in Indonesia: Official
United States firms are eying investments in Indonesian infrastructure such as railways and airports but are concerned about graft and a lack of protection of intellectual property rights, the US under secretary of commerce said on Monday. Under President Barack Obama, the United States is trying to improve ties with the world's most populous Muslim country, including through investment and by boosting bilateral trade of $23 billion a year, which is two thirds of Indonesia's trade with China. "We have some American companies that are interested in supporting Indonesian transportation infrastructure needs, particularly in the railway system," Francisco Sanchez said in an interview with Reuters. He declined to identify the companies. Indonesia's government plans next week to offer investors $32 billion worth of infrastructure projects, including a railway, toll road and power plant, as Southeast Asia's largest economy struggles to fund an overhaul of its transportation network.

Low Inflation Predicted to Last Until June
Economic analyst Aviliani estimates that low inflation will continue until June 2011. "It will go up again in July because there will be no harvest season," she told Tempo last weekend. A 0.32 percent deflation was recorded in March, but the core inflation rose by 0.25 percent. However, said Aviliani, it was difficult for food prices to fall when food dependency remains very high. If there is no additional food production, low inflation should not be expected. Bank Indonesia Governor Darmin Nasution said the core inflation would drop if volatile food prices (especially rice) decreased over the next two to three months.

Rupiah Advances to Strongest Level Since 2007 on Fund Inflows
The Indonesian rupiah appreciated to its strongest level in almost four years as overseas funds added to holdings of the nation's assets to benefit from growth in Southeast Asia's biggest economy. Global funds bought $211 million more of the country's shares than they sold last week, exchange data show. The currency gained for a fourth successive day as official data showed last week inflation slowed for a second month in March. "The main factors driving the rupiah are the inflation data and inflows into Indonesian stocks," said Lindawati Susanto, head of foreign-exchange trading at PT Bank Resona Perdania in Jakarta. "The economy is set for strong growth." The rupiah strengthened 0.2 percent to 8,680 per dollar as of 8:25 a.m. in Jakarta, according to data compiled by Bloomberg. It touched 8,677, the strongest level since May 2007. Consumer prices rose 6.65 percent last month from a year earlier, compared with an increase of 6.84 percent in February, according to official data released on April 1.

Dipo: RI, Turkey Could Promote Democracy in Muslim World
The current visit of Turkish President Abdullah Gul to Indonesia will hopefully yield something that will enable the two countries to help promote democracy in the Muslim world , an Indonesian intellectual and administrator said. "It is a sincere hope that the working visit to Jakarta of President Abdullah Gul may establish a bilateral relation that may forge greater cooperation in the Muslim world in promoting genuine democracy that is in accordance with the wishes of its people and local culture, and not due to the influence of foreign interests," said Dipo Alam, a former secretary if the D8 (2007-2009) and currently Indonesia`s Cabinet Secretary, said in his article entitled "Indonesia and Turkey could lead democracy in the Muslim world". Dipo Alam wrote the article in his personal capacity. Turkish President Abdullah Gul is conducting a State Visit to Indonesia on April 4-7, to reciprocate President Susilo Bambang Yudhoyono working visit to Turkey in July of 2010 to Ankara and Istanbul.

Friday, April 1, 2011
RI 9th-Most Popular Investment Destination, Says SBY
President Susilo Bambang Yudhoyono says Indonesia is now the ninth-most popular country in terms of global investment destinations, because of its resources and sizable consumer market. "Why are we being monitored by the global economic community as a country with great opportunities for investment? The first reason is because of our potential and the growth of our market." "Apart from that, it is access to our natural resources and the quality of our workforce," Yudhoyono said in a speech marking the opening of the Chamber of Commerce and Industry (Kadin)'s annual gathering in Jakarta on Friday. Yudhoyono added that the reasons for investing in Indonesia were obvious and that competition was imminent. He also recommended that, because of this, local business players should be ahead of their foreign counterparts.

President Outlines Economic Challenges, Opportunities
President Susilo Bambang Yudhoyono outlined seven economic challenges and opportunities for Indonesia in a speech at the Indonesian Chamber of Commerce and Industry (Kadin) national leaders' meeting 2011, at the Ritz Carlton Hotel in Jakarta. According to Yudhoyono, Indonesia needs a significant source of finances to develop the economy for the next 15 years. The gross domestic product (GDP) of Indonesia is currently valued at US$700 billion and is targeted to surpass US$4 trillion by 2025. "Out economic structure can't remain in this state if we want to attain that [target]. The manufacturing and service sectors must be developed," the President said. He added that the economic regions outside of Java Island have not been optimally developed. Economic activity in Java contributes 58 percent of the overall national economy. This must not carry on because the island's resources are diminishing. The President, therefore, challenged businessmen to develop the economies of areas outside Java.

Rupiah Hits 4-Year High
Indonesia's rupiah rose to the strongest level in almost four years after the central bank said it will allow the currency to appreciate to control inflation. The currency completed a third weekly advance after stock exchange data showed overseas investors purchased $139 million more local shares than they sold in the first four days of this week. Consumer prices climbed 6.65 percent in March from a year earlier, compared with a 6.84 percent gain the previous month, according to government data issued today. The inflation rate was less than the 6.99 percent median estimate of economists in a Bloomberg survey. "Bank Indonesia has reiterated it's going to use the rupiah to curb imported price pressures, so that is one thing supporting the currency," said Joanna Tan, a Singapore-based economist at Forecast Singapore Pte. "Equities have been buoyant with quite a bit of inflows."

Financial Sector Lifts JCI to More Gains
Indonesia's top banks continued announcing profits in their earning reports, boosting the financial sector 2.75 percent on Thursday and helping the Jakarta Composite Index advance for a second straight day. "Investors were hunting finance stocks as some big players in the field posted significant gains that signaled prospective growth in Indonesia's economy" said Hendri Effendi, an analyst at Citi Pacific Securitas. "The local market has bullish potential in the short term with a little profit-taking along the way." The JCI gained 37.70 points, or 1.04 percent, to close at 3,678.67. About 4.4 billion shares worth Rp 7.3 trillion ($840 million). Gainers topped decliners 119 to 93.

Government to Offer Bonds Worth Rp 7 Trillion On April 5
The government plans to sell rupiah-denominated bonds worth Rp7 trillion in an auction on April 5 to meet part of its financing target in the 2011 state budget, a Finance Ministry official said. The bonds up for the auction will consist of five series and have a face value of Rp1 million per unit, Rahmat Waluyanto, the ministry`s director general of debt management, said in a statement issued on Thursday. Two of the bonds will be new issues. They are discount rate bonds series SPN20110706 which will mature on July 6, 2011 and discount rate bonds series SPN20120406 which will mature on April 6, 2012. The others will be series FRO053, FRO056, and FRO054, all of which are the reopening of the existing issues. The fixed rate bonds series FRO053 carry a coupon rate of 8.25 percent and will mature on July 15, 2021. Payments for the coupon will be made every February 15 and July 15.

Indonesia Inflation Slows, Providing Room to Hold Key Rate
Indonesia's inflation slowed for the second straight month in March as rice prices declined during the harvest period, giving the central bank room to refrain from raising interest rates. Consumer prices in Southeast Asia's biggest economy rose 6.65 percent last month from a year earlier, compared with a 6.84 percent gain in February, the Central Bureau of Statistics said in Jakarta today. That's less than the 6.99 percent median forecast in a Bloomberg News survey of 22 economists. Bank Indonesia kept its benchmark rate at 6.75 percent in March after raising it in February by a quarter of a percentage point, which was the first increase since October 2008. The central bank has allowed the rupiah to strengthen to help reduce imported inflation, Perry Warjiyo, director of economic research at the authority, said last week. "Since Bank Indonesia targets headline inflation, the number reduces the urgency to raise rates further," said Dariusz Kowalczyk, a Hong Kong-based senior economist at Credit Agricole CIB. "We still expect a 25 basis-point hike in the second quarter, but it is now more likely to be later rather than sooner. This is modestly negative for the rupiah."

U.S., Indonesia Partner in Economic Analysis Capacity Building
The United States Government has announced that it would partner with the Government of Indonesia in a program to strengthen its capacity to conduct economic analysis and to promote economic development. A press release from Jakarta-based US Embassy in its official website said the project would assist the Government of Indonesia to develop the economic policies necessary for rapid, inclusive, and sustainable economic growth, job creation, and poverty reduction; and strengthen the ability of Indonesians and Indonesian institutions to conduct economic analysis. The effort will further the objectives of the U.S.-Indonesia Comprehensive Partnership, which seeks to promote prosperity, sustain the environment, strengthen security, enhance understanding, and ensure security for Americans and Indonesians.

US, RI Continue to Fight Avian Influenza
The United States Government in partnership with the Government of Indonesia on Thursday launched a project to reduce the impact of Avian Influenza (AI) on animals and humans and limit the threat of pandemic influenza in Indonesia. ANTARA quoted the Jakarta-based US Embassy`s press statement here Friday as saying that the effort was in line with the goals of the U.S.-Indonesia Comprehensive Partnership to promote prosperity, sustain the environment, strengthen democracy, enhance understanding, and ensure security for the American and Indonesian people. The Strategies Against Flu Emergence (SAFE) project will collaborate with the United Nations Food and Agriculture Organization and the World Health Organization (WHO) to promote early detection and healthier behavior in AI high-risk districts. It will work in partnership with Indonesia`s Ministries of Agriculture and Health.