Friday, August 26, 2011
IDX Enjoys 6% Increase in Net Profits During First Half
The Indonesia Stock Exchange (IDX) reported a 6.76 percent increase in net profit during the first half of the year. IDX profits amounting to Rp 156.4 billion (US$18.3 million) were up from Rp 146.5 billion during the corresponding period last year. A financial report published by the IDX on Friday shows that the profit increase was in line with the increase in revenues of Rp 345.9 billion during the first half from Rp 298.2 billion last year. The revenue increase was boosted by rising income from the IDX stock transaction services, which rose from Rp 186.8 billion to Rp 216.9 billion, and also from clearing services, which rose from Rp 93.3 billion to Rp 107.8 billion.

Indonesia Keeps Rate Rise Option in Reserve
Indonesia's central bank prefers not to raise rates, in case it needs to counter a spike in fuel prices or a bubble in auto loans next year, analysts said. The economy is set to grow by 6 percent in 2011, a figure that may increase by 2012. But Bank Indonesia (BI) has raised rates just once since cutting them to a record low in 2009, instead countering inflation by allowing the rupiah to rise to seven-year highs and working with the government to ease food price pressures.

BI Ready With New Mechanism for Money Market Stabilization
Bank Indonesia (BI) has prepared a combination of dollar sales and purchase of state securities (SBN) in the secondary market to maintain financial market stability, a BI official said. The central bank's director of monetary research and policy, Perry Warjiyo, said here on Friday so far the mechanism was selling US dollars and buying SBI (Bank Indonesia Certificates) at a different time when the rupiah exchange rate and the price of government securities (SBN) were under pressure. "With the new policy BI could act simultaneously namely selling US dollars while at the same time buying SBNs. This is a new mechanism and will be taken in case of pressure such as capital outflow," he said.

Indonesia Seeks Southeast Asia Car Industry Supremacy
Jakarta is not for faint-hearted drivers, but its increasing congestion, bad roads and worse driving habits have not been putting many people off buying a car. "I'm buying a second car for my wife because she works in a different part of the city," said Muhammad Imran, a 40-year-old public relations consultant, as he inspected a car at a Honda showroom in Indonesia's capital. Indonesia, South-East Asia's largest economy with a population of 240 million, is on track to surpass Thailand as the region's biggest car market, industry officials and analysts said.

President to Issue Dcree to Accelerate Papua's Development
President Susilo Bambang Yudhoyono will soon issue a decree on accelerating development activities in Papua and West Papua provinces. "I think we all have agreed that there should be a presidential decree to speed up development there. The decree will allow us to coordinate the existing programs to ensure that all accelerated programs in Papua will work well," Coordinating Minister for Economic Affairs Hatta Rajasa said after attending a coordination meeting on political, legal and security affairs here on Thursday.

RI Team in Kenya to Help Somalian Famine Refugees
A team of Indonesian humanitarian workers from ACT (Quick Response Action) is currently in Kenya to help Somalian famine refugees staying in a camp at Dadaab near the border with Somalia. Imam Akbari, the team leader, in a message to Antara on Thursday said the team consisting of two doctors and two logistics volunteers would set up a base camp in Garissa, the capital of the North Eastern Province of Kenya. The team was in Nairobi on Saturday (Aug 20) and planning to proceed to Mogadishu, Somalia, after completing its mission in refugee camp at Dadaab, he said.

Dewa Ruci Sailing Through Winds of Change
Why has a Class A tall ship been rigorously maintained by the Indonesian Navy as a sail training vessel, when modern sea transportation has been made much easier with computerized navigation systems? Both questions perhaps represent the general public's concern and response to the continuing service of the German-made barquentine that began its journey immediately after it was built in 1953. So confident is the Indonesian Navy of the performance of this ship that it will soon take part in a 10-month global journey, again on a cultural and goodwill ambassadorship mission, which includes a stopover in the United States in conjunction with the July 4 commemorations of US independence.

Thursday, August 25, 2011
Government Says Economy to Grow at Least 6.5% in Q3
The government expects Indonesia's economy to grow "at least" 6.5 percent in the July-September period despite an anticipated slowdown in the global economy, a senior official says. On Thursday, Finance Minister Agus Martowardojo said this growth would be supported by surging realization of investment on the back of improved disbursement in infrastructure projects. "The global economy is going downward, but we will be better," Agus said after a coordination meeting at Bank Indonesia headquarters in Jakarta. "All is in a good shape - economic growth, inflation [and the] exchange rate."

RI Economy in Secure Position: Minister
Indonesia's economy is not directly affected by the present global financial turmoil and already in a safe and secure position, a minister said. But although Indonesia was not directly affected, it still had to prepare for a worst scenario that might occur in the future, Economic Affairs Coordinating Minister Hatta Radjasa said here Thursday. Speaking to reporters after attending a coordination meeting on the latest economic developments, he said the government`s present protocol to deal with a crisis was better than in 2008, while the business world was well established and the country`s macro-economic conditions were more stable than in 2010.

RI's Plantation Exports Reach US$14.4 Billion in First Semester
Indonesia's exports of plantation commodities reached US$14.41 billion in the first semester this year with their volume reaching 9.33 million tons. The director general of plantations, Gamal Nasir, said here on Wednesday 11 commodities continued to dominate, namely rubber, crude palm oil, copra, coffee, tea, pepper, tobacco, cocoa, clove, sugarcane and cashew fruit. "Plantation exports in the first semester this year (until May 2011) rose compared to the same period last year," he said.

President Asks People to Develop Micro Businesses Themselves
President Susilo Bambang Yudhoyono on Thursday asked the people, particularly those of Cilacap district to always come up with ideas of developing micro small businesses to improve their living standard. "The ideas must come from the people," the President said when visiting a fish fry market in Majenang subdistrict, Cilacap district, Central Java. The President was here as part of his Ramadhan safari which earlier took him to a number of districts in West Java.

Pertamina Optimistic East Natuna Contract Finalized in October
State-owned oil/gas company Pertamina is optimistic a production sharing contract on the East Natuna Gas Block can be signed next October although some problems still needed to be threshed out. One of the pending problems was provision of land for CO2 gas injections, Muhammad Husen, Pertamina`s upstream operations director, said here Tuesday. "In essence, the government already knows how to settle the pending issues and therefore we are optimistic the contact can be mutually agreed on by October 28, 2011," Husen said after a fast breaking dinner with newsmen.

Indonesia Palm Tax Change Will Not Stop Flow Distortions
Trimming the Indonesian palm oil export tax cap by a maximum of 5 percent, a move widely expected by market players, will do little to stop the current distortion of flow to the global market, an industry association said on Thursday. In late July, an industry ministry official said Indonesia may cap its maximum export tax for the edible oil to 20 percent from 25 percent. The existing tax system, aimed at securing domestic supply and reducing volatility in cooking oil prices, allows the government to impose tax rates from 1.5 to 25 percent.

Indonesian Military Familiarizes UN Peace Mission in Lebanon
Indonesian military (TNI) is familiarizing the tasks of the UN peace mission in Lebanon under UN Security Council Resolution No. 1701. "The Indonesian contingent had been chosen as part of the MCOU (Military Community Outreach Unit) task force for the first time, replacing Italy military contingent for the past seven months doing the same tasks, an Indonesian military in charge of the mission, First Lieutenant Santoso, said here Thursday. To support the familiarization of the UN peace mission in Lebanon, the TNI MCOU task force has conducted a field orientation in the Harris village, along with the Italian contingent led by Major Stefano Baleani.

Tuesday, August 23, 2011
Banking, Mining Shares in Highest Demand on Monday
Banking and mining industry shares at he Indonesian Stock Exchange (IDX) were in highest demand among market players, pushing the joint composite index (JCI) price down to below 4,000 points on Monday. PT Nusa Corpindo Finance analyst Edwin Sinaga said bank shares were sold by traders on fears the crisis in the United States would continue. The top selling shares were those of Bank Mandiri, Bank BRI, Bank BCA and Bank Danamon with the total volume sold reaching 90 million shares at rates between Rp150 to Rp200 per share.

SBY Hopes for Peaceful End to Libyan Conflict
President Susilo Bambang Yudhoyono expressed his concern over the conflict in Libya after opposition troops besieged the capital city of Tripoli. "Indonesia is concerned with the developments in Libya. Indonesia hopes that the critical developments in Tripoli's safety situation will not cause more innocent civilian victims," the President said during a Ramadhan Safari on Tuesday. The President added that he hoped the conflict in Libya would be settled soon.

Foreign Investors to Shift Funds to Asia
Economist Guntur S. Siboro predicted here on Tuesday that the current financial crisis in the US and Europe would encourage foreign investors to shift their funds to Asia. Thanks to its better economic growth, Asia, particularly Indonesia, would be flooded by foreign funds, and therefore Indonesia should not be worried about the financial crisis in the US and Europe, he said. Some parties were indeed worried the financial crisis in the US and Europe might trigger a global economic crisis similar to that in 1997-1998, he said.

Boediono, Tony Blair Discuss Presidential Delivery Unit
Vice President Boediono and former British Prime Minister Tony Blair in their meeting here on Tuesday discussed the Presidential Delivery Unit on Development Control and Supervision (UKP4). "They had a long discussion on UKP4 - the presidential delivery unit -, because the idea of establishing the delivery unit came from Tony Blair, in the past it was the prime minister`s delivery unit," Dewi Fortuna Anwar, the Vice President`s deputy secretary in charge of political affairs, said after accompanying Boediono at the meeting with Blair. In Blair`s view, the delivery unit was effective in boosting a change mechanism, while the bureaucracy was too slow in implementing change, Dewi said.

Government Plans to Reduce Poverty by 8-10 Pct
Minister Coordinating People`s Welfare Agung Laksono said 2014 the number of poor people in Indonesia might be reduced by 8-10 pct following efforts of raising the welfare of the people. "To reduce the number of the poor in the country we need to work hard and open up large investment opportunities with the support of the people`s economy," Minister Agung Laksono said during a Ramadhan Safari and Joint Dialogue with handicraftters in Limpung sub-district, Batang regency Sunday night.

Pertamina Optimistic Senoro Project Completed in 2014
State oil and gas company PT Pertamina believed the construction of the Donggi-Senoro liquefied natural gas plant in Banggai regency, Central Sulawesi, would be completed according to schedule in 2014. Pertamina`s upstream director Muhammad Husen said in Jakarta Sunday work on the project, upstream and downstream, is running well. "I have just returned from the location, and I noticed that work on the project both upstream and downstream is progressing well. I am therefore optimistic that the first shipment of LNG would be carried out in 2014," he said.

Monday, August 22, 2011
SMEs Contribute to National Economic Growth
The presence of various small and medium enterprises (SMEs) in Indonesia will contribute to positive national economic growth, a businessman said. Former Young Indonesian Businessmen Association (Hipmi) chairman Sandiaga S Uno said here on Sunday that the presence of SMEs across the country could make Indonesia the world`s fifth largest economy in the future. "The Indonesian economy at present is ranked the 16th in the world and in 2050 Indonesia could be the world`s fifth largest economy, " Sandiago said at a fast breaking function with the East Java branch of Hipmi on Sunday evening.

RI Ready to Produce Bird Flu Vaccine: Minister
Indonesia is ready to produce H5N1 (bird flu) vaccine following the transfer of an H5N1 seed producing vaccine, "A/Indonesia/Unair/2005" from the Surabaya-based Airlangga University, the welfare affairs minister said. Coordinating Minister for People`s Welfare Agung Laksono made the statement here on Sunday, adding that Unair is the only university in the country for avian flu research. Minister Laksono who was accompanied among others by deputy education minister Prof Fasli Jalal and Unair rector Prof Fasich Apt, said seed vaccine production for human beings still relies on state-run pharmaceutical maker PT Bio Farma.

Donggi-Senoro LNG on Track to Start Flow in 2014
The Donggi-Senoro liquefied natural gas project in Sulawesi is on schedule to start producing in the fourth quarter of 2014, a senior official said. "We are still on track. We will start delivering LNG to our customers by the fourth quarter of 2014," said Andi Karamoy, communication director at operator DSLNG on Sunday. "We are planning to conduct the ground-breaking next year to mark the beginning of construction," Andi said. The LNG plant is expected to produce 2 million tons of compressed natural gas per year, equivalent to 30 shipments.

Pertamina to Boost Oil Production
Indonesian state oil company Pertamina would almost double oil production from reactivated old fields to 7,600 barrels of oil per day (bopd) by end-year from 2008 levels, as the country struggles to halt declining output. Pertamina Exploration and Production (EP) has recently reactivated one of its abandoned South Kutai Lama (SKL) wells in East Kalimantan through its Sangasanga Tarakan unit, with early production showing 150 bopd, the company said in a statement. The firm is also preparing 10 other SKL wells for reactivation along with their production facilities, aiming to tap 10-15 bpd from each well, said Agus Amperianto, Pertamina EP spokesman.

JCI Ends Down After Mixed Day
The country's benchmark stock index finished lower for a second straight day, with the finance and commodities-based sectors leading the slide amid concerns the global economy would slip back into recession. Shares of consumer goods manufacturers, however, rose on expectations that household spending would increase a week before the end of Ramadan. The Jakarta Composite Index lost 3.13 points, or 0.1 percent, to close at 3,839.62. But gainers beat decliners by 123 to 101. Almost five billion shares worth more than Rp 5 trillion ($585 million) were traded. Foreign investors sold Rp 685 billion more in shares than they bought.

Friday, August 19, 2011
Yudhoyono's Speech Increases Stock Index
The speech delivered by President Susilo Bambang Yudhoyono on Tuesday increased the Joined Share Price Index on the Indonesian Stock Exchange. During yesterday's trade, the index strengthened to the 4.000 mark. PT Panin Sekuritas' analyst, Purwoko Sartono, said investors responded positively to the speech linked to the country's macro-economy. "It's as if the stock exchange wants to give a bonus for Lebaran and Independence Day," he said yesterday. In the 30-page speech, the president mentioned the global economy and the government's willingness to anticipate any negative impacts on Indonesia.

Government to Conduct Taxpayers Census
The Directorate General of Taxes plans to conduct a national census as part of its pro-active extension program to increase tax collection. "We are ready to carry it out for three months from October to December," director general of taxes, Ahmad Fuad Rahmany, said here on Friday. He said the census was part of the office`s efforts to collect data on taxpayers and see their compliance in order to widen the taxation base. He said the self-assessment system carried out so far was not yet effective enough to make people pay their taxes out of their own accord.

Cepu Gas Field Set To Be in Production in 2015
State-owned oil and gas company PT Pertamina has targeted that the Cepu Gas Block in the border area between East Java and Central Java will began to distribute gas in 2015, a Pertamina official said. Peramina Upstream Director M Husen said here on Friday that PT Pertamina EP Ceput had been assigned to operate the gas block. "In order to follow the government`s suggestion, we are moving forward the schedule of the Cepu gas field development to produce in 2015," Husen said after the heads of agreement (HOA) signing between PT Pertamina EP Cepu, Mobil Cepu Ltd and Ampolex (Ceput) Pte Lted here on Friday.

Pertamina Seeks Incentives to Develop Riau Natural Gas Block
State-owned energy firm Pertamina has asked the government for financial incentives to develop a block in western Indonesia that requires advanced technology to extract natural gas. Muhammad Husein, director of upstream business at Pertamina, said on Friday that despite Pertamina and its partners being confident they have enough expertise and technology to harvest gas from the block, incentives were needed as "development requires a big investment." The block is located in East Natuna, in the Riau Islands, which are home to the largest gas reserves in Indonesia - about 200 trillion cubic feet, according to Exxon Mobil. But only 45 trillion cubic feet can be extracted because high carbon content makes the remainder too costly.

LIPI Pioneering Second-Generation Bio-Ethanol Production
The Indonesian Institute of Sciences (LIPI) is pioneering the production of second generation bio-ethanol on a "pilot plan" scale in cooperation with the Korean International Cooperation Agency (KOICA). "The pilot plan is the first in Indonesia, and targeted to produce bio-ethanol, lignocelluloses at a rate of 10 liters per day in 2012," said LIPI Chemistry Research Centre researcher Dr. Yanni Sudiyani at a workshop on "Integrated Sustainable Development of Bio-energy Technology" here on Thursday. Yanni said the cooperation with KOICA was a challenge and an opportunity for LIPI to develop research to produce second generation technological innovations for ethanol production and its derivatives (byproduct) with a multidimensional approach from upstream sources of raw materials handling, to downstream.

US Explores Investment Opportunities in Biak
US Embassy staff from Jakarta visited Biak Numfor on Friday to continue exploring investment opportunities in the West Papua regency. During a visit headed by embassy official Kopt Joel, the US Embassy entourage listened to Biak Numfor regent Yusuf Melianus Maryen's presentation on the region's potential and the local administration's development policies. "The security situation in Biak Numfor regency at present is very conducive [for investments] because we prioritize togetherness and brotherhood among residents," Maryen said during his presentation, as quoted by Antara.

Jakarta Dreams of Becoming SE Asia's Motor City
General Motors and Peugeot's decision last week to revive assembly of automobiles in Indonesia is positioning the country to become the leading automobile manufacturer in Southeast Asia. Indonesia is already expecting more than $1 billion in investment in the automotive sector starting this year. Nissan recently announced a $250 million expansion plan; Suzuki has announced an $800 million expansion; Chrysler a $100 million expansion; Daihatsu just carried out a $246 million expansion; and BMW a $12 million expansion. India's Tata also expressed interest in building a production base in Indonesia.

Thursday, August 18, 2011
Clinton Congratulates Indonesia
On behalf of President Obama and the people of the United States, Secretary Hillary Clinton congratulates the Indonesian people on the 66th anniversary of their Independence this August 17. Over the past decade, Indonesia has emerged as a thriving democracy and a regional and global leader. "During my visit to Indonesia last month, I saw firsthand Indonesia`s commitment to the economic potential of the region and to the future of your country," Clinton was quoted by the US embassy here in its Website.

Exports Predicted to Grow 18 Pct
The government has made an estimate that the country's total exports in 2012 would increase between 18 percent and 20 percent, Trade Minister Mari Elka Pangestu said. "We are optimistic that the target will be achieved regardless of the fact that economic development in the United States and Europe is slowing down," the minister said here on Thursday. The minister`s optimism was based on the country`s export trend in the first semester of 2011, which based on the data at the Central Board of Statistics (BPS) stood at 98.6 billion US dollars, up 36 percent from the same period a year earlier.

RI's Foreign Debts Safe
Indonesia's debt servicing ratio in the year ended June 30 reached 21.6 percent, well below the dangerous threshold of 30 percent, a central bank spokesman said. "The ratio suggests that the amount of government and private foreign debts is still safe," the head of Bank Indonesia`s public relations bureau, Difi A Johansyah said here on Thursday. Debt service ratio is the ratio of debt service payments (principal + interest) to export earnings. A country`s international finances are healthier when this ratio is low. The ratio is between 0 and 20 percent for most countries.

Disappointed Investors Trigger JCI to Move Stronger
Disappointed investors increased the Indonesian joint composite index (JCI) amid regional exchanges. "Investors are disappointed about French and German officials meeting which failed to form a joint bond (Eurobond) as a measure to take liquidity to the European zone," said Indosurya Asset Management analyst Adha Mubarak here, Thursday. The JCI was opened stronger with 11.73 points or 0.3 percent to 3,965.01. The LQ45 index also increases 2.91 points or 0.42 percent to 703.32 points.

Four State-Owned Companies May Go Public in 2012: Minister
State Enterprises Minister Mustafa Abubakar said four state-owned companies (BUMNs) were expected to be able to go public next year. "We are pushing for more BUMNs to sell their shares in the domestic market. While the momentum for it is expected to be good, going public is also one of the options for improving their performance," Mustafa Abubakar said after leading an independence day ceremony at his office here on Wednesday. He said four BUMNs which are expected to be able to conduct an initial public offering next year are PT Semen Baturaja, PT Pegadaian, one of PT Pertamina`s subsidiary (PT Tugu Pratama) and one of PT Krakatau Steel`s subsidiary.

A History of Batik, Painted in Wax
Pieces of batik hang in glass cases in the Batik Gallery at the Jakarta Textile Museum like illustrated pages jumping off history books. Each piece tells the life stories and legends of a bygone era in Kudus, the smallest district in Central Java. One piece shows a black-and-white motif of a capsized ship. The unique piece of batik tells the history of Adm. Cheng Ho, who came to Indonesia in the early 1400s. One of his ships capsized just off the coast from Mount Muria, a dormant volcano, washing its cargo and survivors ashore.

RI's Mily Contingent Secures Lebanon-Israel Meeting
The Indonesian Force Protection Company (Indo FPC)'s task force enjoyed another trust to secure a tripartite meeting of senior officers in conflict-plagued southern Lebanon on Thursday. "Like in the previous months, the Indo FPC`s task force has received a trust from the UNIFIL (United Nations Interim Force in Lebanon) to secure a tripartite meeting among Lebanon, Israel and UNIFIL," spokesman of the task force Nur Kholis said when contacted by an ANTARA correspondent in Cairo on Thursday. The tripartite meeting brought together senior officers of the Lebanese Army Force (LAF) and the Israeli Defence Force as well as the UNIFIL supreme commander, Maj. Gen. Alberto Assarta Ceuvas.

Tuesday, August 16, 2011
President Yudhoyono Sets 11 National Priorities for 2012 Budget
President Susilo Bambang Yudhoyono breaks down his medium-term development program into 11 national priorities in the 2012 draft budget. He presented them in his address on the government`s 2012 draft budget and its financial notes made before the parliament here on Tuesday. The 11 national priorities include bureaucratic and governance reform, education, health, poverty alleviation, food resilience, infrastructure, investment and business climate, energy, environment and disaster management and management of backward and border villages and post-conflict efforts and culture, creativity and technological innovation.

SBY Seeks Big Growth in Infrastructure for 2012 Budget
In his annual speech assessing the state of the republic on Tuesday, President Susilo Bambang Yudhoyono proposed an expansive budget for 2012 that focuses on infrastructure spending and social programs, while making modest cuts in some subsidies, as the country aims for faster economic growth. The 2012 budget is to grow by 7.4 percent to a total of Rp 1,418.5 trillion ($165.96 billion), up from Rp 1,320.8 trillion in 2011. Despite concerns over the health of the global economy, Yudhoyono said that the largest economy in Southeast Asia would grow by 6.7 percent next year, up from an estimated 6.5 percent this year, as investment, consumption and exports remain strong.

BI Optimistic Economy to Grow 6.6 Percent
Bank Indonesia Governor Darmin Nasution expressed optimism here on Tuesday that the country`s economy would still grow 6.6 percent this year against the backdrop of the current crisis in Europe and the US. He said after attending President Susilo Bambang Yudhoyono`s speech at the parliament that although there had been economic slowdown in Europe and the US that might affect exports he believed the national economy would remain good. He said investment remained strong and it had even been dominating in the growth.

RI Turning to Asia For Export Markets
Indonesia is seeking to increase its exports and diversify its export markets to Asia to anticipate low demand from Europe and the US. "We must diversify our markets. Our exports to the US have now reached around 10 percent. Exports to Asia are bigger," Trade Minister Mari Elka Pangestu said after attending President Susilo Bambang Yudhoyono` state address at the parliament made in connection with the country`s 66th independence anniversary on August 17. According to data from the National Statistics Agency, Indonesia`s non-oil/non-gas exports to the US from January to June 2011 were recorded at 9.99 percent of the country`s total exports, which was lower than 10.52 percent recorded in the same period last year.

Indonesia's Export Growth to Surpass China
The government claims Indonesia's export growth will surpass China if the national export value reaches US$200 billion this year. If this figure is reached, Indonesian will have doubled its export value within a five-year period, or faster than China, Malaysia and Singapore. "China needed six years to double its exports to US$200 billion, while Singapore and Malaysia needed 10 and 7 years respectively," the Trade Ministry's foreign trade director-general Deddy Saleh said yesterday. As such, Indonesia could compete with Brazil and India, which managed to double their exports in five years.

President Confident Indonesia Able to Overcome Global Crisis
President Susilo Bambang Yudhoyono expressed confidence here on Tuesday that Indonesia would be able to overcome the impact of the current global economic crisis. In his state address made before the parliament in connection with the country`s 66th independence anniversary on Wednesday President Yudhoyono said he believed with its experience in overcoming the 2008-2009 crisis Indonesia would be able to overcome the impact of the current crisis. "I believe with the experience we got during the global economic crisis in 2008 to 2009 and hard work as well as cooperation among us all we could over the bad impact of the current economic crisis," he said.

RI Plays Active Role in Creating Peace in ASEAN
President Susilo Bambang Yudhoyono has said Indonesia, as the current ASEAN Chair, had played an active role in creating peace and stability in the region. "Based on that responsibility, we have played an active role in facilitating meetings between Cambodia and Thailand to solve their border problem," the president said in his state address before a combined plenary session of the House of Representatives (DPR) and the Regional Representatives Council (DPD) at the Parliament Building here on Tuesday. In order to maintain security in the Southeast Asian region, Indonesia was trying reduce the tensions not only between ASEAN members but also between ASEAN and ASEAN`s partners.

Monday, August 15, 2011
JCI Keeps Rallying With News of Corporate Tax Holiday
Indonesian stocks rallied for a fourth day on Monday after the government said it would issue tax breaks for foreign companies planning to invest in certain industries. Construction-related firms gained on expectations that a pick-up in building will boost their profitability. The Jakarta Composite Index rose 69.49 points, or 1.8 percent, to close at 3,960.02, extending a three-day 4.2 percent advance. More than 4.97 billion shares worth Rp 4.69 trillion changed hands on the Indonesia Stock Exchange. Gainers outnumbered decliners by 208 to 38. Foreign investors sold Rp 1 billion more in shares than they purchased.

Indonesia to Give Tax Holidays for Major Direct Investors
Indonesia will give a tax holiday for investors committing at least 1 trillion rupiah ($117 million) into sectors including metals and energy, an effort to spur record levels of foreign direct investment in Southeast Asia's biggest economy. The G20 member aims to become a world top ten economy by 2025 through boosting investment, improving infrastructure and developing industries that add value to its position as a leading producer of resources such as tin, palm oil and coal.

Ministry Launches Environmentally-Friendly Building Certification System
The Environment Ministry has launched an environmentally-friendly building certification system, the ministry`s chief, Gusti Muhammad Hatta, said here on Friday. "The environmentally-friendly building certification system is one of our efforts to reduce green house gas emission which is predicted to reach 26 percent in 2020," Gusti said. He said increasing efficiency was the cheapest way to overcome greenhouse gas emission.

ASEAN Economy Grows by 7.5 Per Cent
ASEAN economy has proven itself to be resilient, but there are lingering challenges and risks, including the sovereign debt crisis and fiscal problems in some developed markets, rising food and commodity prices, and continued financial market stresses. The ASEAN Economic Ministers made the observation and reminder at the 43rd ASEAN Economic Ministers (AEM) Meeting here on August 10 and 11, 2011. According to the ASEAN secretariat`s press release received here on Monday, that ASEAN`s recovery as a whole has matured as both exports and domestic demand fueled growth to expand by 7.5 per cent last year.

RI Handicapped Climbers to Fly Indonesian Flag in Elbrus Peak
Three members of an Indonesian physically handicapped climbers of a Merdeka Expedition Team - Rakyat Merdeka Online (RMOL), climbed Mt Elbrus (5,642 mdpl), one of the highest peaks in Europe. Second Secretary of the information, social, and cultural division of the Indonesian embassy in Moscow Enjay Diana told ANTARA`s London correspondent on Sunday that with an exceptionally high spirit, only relying on their right feet and a cane, one of the climbers Sabar had promised himself to reach the peak of Mt Elbrus. Enjay Diana another member said she wished to fly the Red and White Indonesian flag at the peak on the 66th anniversary of Indonesian Independence Day on August 17, 2011, not only to introduce Indonesia to the rest of the world, and to get to know the Elbrus National Park.

US Companies Urged to Share Success Stories in ASEAN
ASEAN Secretary General Dr Surin Pitsuwan has urged the US companies to share their success stories in doing business in ASEAN and promote them through the media. He also pointed that out of 20 US companies delegations based in ASEAN, at least six companies have established ASEAN department or business units, the ASEAN Secretariat said in a press statement here on Monday. "This underscores the importance of ASEAN region to the US companies," Dr Surin said.

Friday, August 12, 2011
Indonesia's Composite Index Up 21.16 Points
The Indonesia Stock Exchange (BEI) index rose 21.16 points or 0.55 percent to 3,890.53 at the close of trading here on Friday following the regional trend. The index of 45 LQ45 bluechips also rose 3.31 points or 0.48 percent to 689.60 points. Milenium Danatama Sekuritas analyst Abidin said the trend of the BEI index was up after sliding significantly. "Although trading was rather dull compared to the days before the BEI index was moving up albeit only within a short range," he said. He said global conditions were not yet conducive, following financial crisis in the US and Europe as dealers took a wait and see stance.

Eighteen State Enterprises Post Rp 34.67 Trillion Profit
Eighteen publicly listed state-owned enterprises posted a combined net profit of Rp34.570 trillion in the first half of 2011, State Enterprises Minister Mustafa Abubakar said. The figure represented a 36.44 percent increase from the same period in 2010 when the figure was Rp25. 34 trillion, he said. "Of the overall profit of Rp69.88 trillion made by a total of 142 state-owned enterprises in the first half of 2011, 49.47 percent was contributed by the 18 publicly listed companies," the minister said here Thursday. Mustafa said the financial performance of state-owned enterprises was experiencing significant growth every year.

RI, US to Hold ASEAN Trade Facilitation Forum
Indonesia as the ASEAN chair and the United States are going to hold an ASEAN Trade Facilitation Forum on August 13 on the sidelines of the 43rd ASEAN Ministerial Meeting in Manado, an official said. "The event will be hosted by Indonesian Minister of Trade Mari Pangestu and it will be the first time for business representatives from ASEAN, the US and other parts of the world to come together as a group in a direct dialogue with ministers and senior officials on measures to boost trade in the region," Josh Curtin, the deputy chief of mission to ASEAN, said here on Thursday.

General Motors to Invest $150m in Indonesia Plant
General Motors Co said on Friday it will invest $150 million to reactivate a plant in Indonesia to build a "people mover" van for Southeast Asia. The No. 1 U.S. automaker said the Bekasi plant in West Java, Indonesia, will begin production of the vehicle in 2013 and build 40,000 of the vans a year, ultimately creating more than 800 jobs. GM, which said it will add new manufacturing equipment at the plant, did not disclose further details about the vehicle, including its name, design specifications or pricing.

Investment to be Engine of Economic Growth
Investment is expected to become an engine of Indonesia's economic growth in the future, Coordinating Minister for Economy Hatta Rajasa said here on Friday. If this happens the people will no longer depend on household consumption, the minister said. "Growing nearly double-digit over some 20 percent, the investment at present is very strong and can become an engine of the country`s economic growth in the future," Hatta said. Besides expecting contribution from household consumption, Hatta also wanted the export sector could be another contributor to economic growth.

Thursday, August 11, 2011
Indonesia Stock Exchange Confident of More IPOs in 2nd Half
As many as 10 more companies could be listed on the stock exchange by the end of this year amid confidence that local investor interest would drive demand in spite of global market volatility, a bourse official said. Eddy Sugito, a director at the Indonesia Stock Exchange (IDX), said 10 companies were expected to issue initial public offerings in the second half, which would raise an estimated combined total of Rp 10 trillion ($1.17 billion). Coal miners Atlas Energi Resources and Golden Energy, telecommunications infrastructure firm Solusi Tunas Pratama and SMR Utama, a mining and natural resources company, have submitted proposals for company listings, he said.

State Budget Takes Into Account All Possible Risks
President Susilo Bambang Yudhoyono said that the 2012 draft state budget had incorporated anticipatory measures against all possibilities, including risks that might arise in the present world financial turmoil. The President who chaired a plenary cabinet meeting at the Presidential Office here on Thursday, said that the draft state budget had taken into account all aspects. "God Willing, I will deliver the 2012 draft state budget and financial notes at a joint session. All aspects have been taken into account," the President said.

RI Economy Safe from US, European Crisis: Minister
Indonesia's debts have been managed well and its economic fundamentals are solid so its economy will not be affected by the crisis in the United States and Europe, Finance Minister Agus Martowardojo said. "I believe that the economic turmoil in the United States and Europe is caused by the fact that those countries have a big amount of debts," the finance minister said here on Tuesday. He said that Indonesia in the last ten years had been able to manage its debts, particularly in maintaining its normal debt-to-GDP ratio. The minister said that Indonesia in the last ten years had been able to reduce its debt-to-GDP ratio from 80 percent to 26 percent in 2011.

RI's Total Debt Recorded at 26 Pct of GDP
Finance Minister Agus Martowardojo said Indonesia's debt remained under control and was recorded at only 26 percent of its GDP (Gross Demestic Product). "I believe the crisis faced by the US and Europe originated from their huge debt. We, Indonesia, have been able to keep our debt- to-GDP ratio over the past ten years under tight control," he said here on Thursday. The Indonesian government`s total debt reached US$200.50 billion or around Rp1,723.90 trillion until June, 2011, according to temporary data of the Directorate General of Debt Management.

JCI Steadies Despite Global Instability, Rupiah Drops
Indonesian stocks rose for a second day on Thursday as local investors purchased shares based on the view that prices were cheap relative to profit potential following the market's recent plunge. The rupiah, meanwhile, dropped 0.06 percent against dollar to 8,530. The Jakarta Composite Index gained 5.79 points, or 0.2 percent, to close at 3,869.37, extending Wednesday's 3.4 percent advance. More than 7.36 billion shares valued at Rp 6.39 trillion ($748 million) were traded. Gainers beat decliners by 125 to 104. Foreign investors, who accounted for 64 percent of trading on the Indonesia Stock Exchange, sold Rp 687 billion more in shares than they bought.

ASEAN Economies More Able to Bear Global Uncertainties: VP
The US and Europe can no longer move the world economy but ASEAN economies are in a better situation right now to face the global uncertainties, Vice President Boediono says. Looking West, he reminded the audience that "In recent weeks, we have seen the uncertainties being created in the US with the protracted debate on the debt ceiling, potential for a double dip recession and most recently, the downgrade of the US sovereign rating. In Europe, we have seen the difficulties in managing the debt packages of Greece, Ireland and Portugal, and the anxieties of a debt crisis spreading to Italy and Spain," he said when opening the 43th ASEAN Economic Ministers Meeting in Manado on Wednesday.

TNI Introduces Indonesian Culture in Lebanon
The mechanical battalion of the Garuda contingent (UNIFIL) introduced Indonesian culture to Lebanese children at Kleya Public School, Marjayoun, Southern Lebanon. Konga task force commander Lt Col Hendy Antariksa in his electronic letter to ANTARA in Jakarta Wednesday said that the activity is part of the social service of the Indonesian military personnel in Southern Lebanon. The Indonesian Cultural program was preceded by a Srikandi Dance and followed by a Sisingaan Dance and Reog Ponorogo. "Several competitions were also held including marbles and the insertion of a pencil into a bottle," Hendy said.

Wednesday, August 10, 2011
Indonesia`s Composite Index Up 3.44 Percent
The composite index of the Indonesia Stock Exchange was up 3.44 percent at the close of trading on Wednesday following three days of sell-offs. The IHSG was up 128.46 to 3,863.58. The index of the 45 blue chips (LQ45) was up 24.73 points or 3.74 percent to 685.25. Reza Priyambada from Research Indosurya Asset Management said the value of shares were considered low and encouraged investors to take a buying position. "The fall in three straight days caused the price of shares to drop very low prompting market players to start buying. The rising of the BEI index was also the result of a technical rebound," he said.

RI Government Preparing Mitigation Steps to Face Global Crisis
The government is preparing mitigation steps to anticipate possible economic upheavals because of the crises engulfing the United States and Europe, a Finance Ministry official said. "The government will always keep watch for the impact (of the crises) on the global economy by taking various mitigation steps including speeding up budget spending, stabilizing the market using budget leftover, and buying back state debt securities through bond stabilization framework," acting chief of the ministry`s fiscal policy board Bambang Brodjonegoro told a press conference here on Tuesday. He said this crisis protocol management would also be supported by the allocation of mitigation funds in the revised 2011 state budget and the policy would begin to take effect after there had been signs of crisis.

ASEAN Ministers Meet in Manado to Build Economic Community
ASEAN ministers in charge of economic, commercial, trade and investment affairs gather in Manado, North Sulawesi, on August 9-14, to continue their work of building an ASEAN Economic Community (AEC) by 2015. In addition, the ASEAN Economic Ministers would also discuss ways to further engage ASEAN`s dialogue partners and other stakeholders in the process in addition to implementing measures in the AEC blueprint that falls under their purview, including those pertaining to trade in goods, services and investment, according to report in the ASEAN news website on Tuesday.

Government Allocates Rp 28 Trillion for Road Construction
The government has set aside Rp28 trillion in funds for the construction of bridges and roads across the country this year, a Public Works Ministry official said. "The Rp28 trillion budget allocations are used to build 38,500 kilometers of roads. Road and bridge construction projects in Java alone will cost an estimated Rp4.5 trillion," the ministry`s director general of highway construction maintenance, Joko Murjanto, said here on Tuesday. He said all bridge repair projects in Java`s northern coastal areas and southern parts could hopefully be completed 15 days ahead of the post-fasting month festivities to facilitate homeward holidaymakers.

News Focus: RI to Further Tap ASEAN Tourism Market
The ASEAN region is still the major contributor to the flow of foreign tourists into Indonesia being the fact that of the 7 million foreign tourists who visited Indonesia last year, about 2.5 million came from Southeast Asian countries. Seeing the number of foreign tourist arrivals in 2010 which stood at 7 million, Indonesia early this year set an optimistic target of attracting 7.7 million foreign tourists in 2011, up about 10 percent from 7,000,571 arrivals a year earlier. However, in the first semester of this year, the number of foreign tourists who arrived was recorded at 3.5 million only or less than half of this year target of 7.7 million.

Indonesian Tech Frenzy Tantalizes Silicon Valley Venture Capital
Venture capitalists from Silicon Valley to New York all have the same question about Indonesia's come-from-nowhere tech frenzy: Are the young entrepreneurs that have piqued their interest smart bets or just surfing a hype that will soon burn out. A few years ago, Internet connections were so slow in Indonesia that trying to download a clip off YouTube could take 20 minutes on a good day. Now the Muslim majority nation of 240 million people - despite the tangled balls of telephone wire that dangle precariously over dusty, potholed roads - boasts the world's second largest number of Facebook users and is third for Twitter.

Tuesday, August 9, 2011
Indonesia Will Ride Out Debt Storm: BI
Analysts said on Sunday that the United States' credit rating downgrade by Standard & Poor's would have little effect on Indonesia. Bank Indonesia Deputy Governor Hartadi A. Sarwono said the bank was closely watching the situation and would take the steps necessary to stabilize the market, but added that the economy remained resilient and the central bank "could manage fluctuations well." S&P lowered the US rating on Friday by one notch from AAA to AA+, saying that US politicians were increasingly unable to manage the country's huge fiscal deficit and debt.

Chief Economic Minister Says Government Spending in 2012 to Expand
Chief economic minister Hatta Rajasa said capital spending in 2012 would be more expansive in connection with the implementation of infrastructure projects for the implementation of the MP3EI program. "The portion for infrastructure and projects relating to the MP3EI (the master plan for Indonesian economic development expansion and acceleration) would be bigger and more expansive," he said here on Monday. He said with the spending to reach around Rp1,400 trillion in 2012 targets of expenditures would be more selected to press down inflation to 1.4 to 1.9 percent.

Indonesia Keeps Interest Rate Steady
Indonesia on Tuesday held its key interest rate steady at 6.75 percent, as the central bank said inflation was under control despite strong consumer-driven growth. Bank Indonesia spokesman Difi Johansyah said the overnight policy rate was "sufficient" to maintain economic stability while supporting "our increasing economic expansion." The current turmoil in global stock markets and the ratings downgrade for US debt will not have any long-term impact on Southeast Asia's biggest economy, which is forecast to grow 6.6 percent this year, he added.

Baliem Valley Festival 2011 Officially Opened
The Baliem Valley Festival 2011 was officially kicked off by the tourism and culture ministry`s expert staff, Hari Kuntoro Drajat, in Jayawijaya District, Papua Province, Monday. The Baliem Valley Festival was one of the significant cultural events in the history of the Indonesian people and Papua in particular, Kuntoro said on behalf of Tourism and Culture Minister Jero Wacik at the opening ceremony attended by thousands of visitors. Wasiwilo District, Jayawijaya, is a special valley therefore it has been promoted as a tourist destination, he said. The cultural values of Papua`s people must be preserved and promoted nationally, because Papua is the center for the national development of food, fishery and mining energy.

News Focus: Government to Promote Batik as Flagship Product
Batik industry has been booming following the increased public enthusiasm of wearing the traditional clothes particularly since the inclusion of batik by UNESCO in "Intangible Cultural Heritage of Humanity" items on September 30, 2009. On October 2, 2009, President Susilo Bambang Yudhoyono called on all Indonesians to wear batik on that day to celebrate UNESCO`s decision. UNESCO (United Nations Education, Scientific and Cultural Organization) describes Indonesian Batik as: The techniques, symbolism and culture surrounding hand-dyed cotton and silk garments known as Indonesian Batik permeate the lives of Indonesians from beginning to end: infants are carried in batik slings decorated with symbols designed to bring the child luck, and the dead are shrouded in funerary batik.

Seventy RI High-School Students to Live One Year in USA
Seventy Indonesian high-school students participating in the Kennedy-Lugar Youth Exchange and Study (YES) Program will spend one year living with American families and studying at American high schools. The students will be living throughout the United States, the US embassy in Jakarta said in a press statement here on Monday. The US Embassy held iftar (fast breaking) dinner to send off the students and answer questions about life and study in America. The Kennedy-Lugar Youth Exchange and Study (YES) Program, funded by the US Department of State, provides scholarships for secondary school students (age 15-17) from countries with significant Muslim populations to spend up to one academic year in the United States.

Hollywood Filming in Jakarta
A group of Hollywood actors, actresses and filmmakers who recently shot a movie in Indonesia said that despite certain challenges of nature like sandstorms and scorching heat, their experience in the country was "beautiful" and eye-opening. But there was one unnatural challenge that was seen as particularly demanding: the traffic in the country's capital. "Jakarta traffic is a difficulty because we have to get around it and we have to leave extremely early in the morning to get to the studio and end up getting home late in the day" director and scriptwriter of the movie The Philosophers John Huddles said last week after a press conference.

Monday, August 8, 2011
RI Industries Grow Faster Than Economy: Official
The national industry grew 6.61 percent in the second quarter of 2011, surpassing the national economic growth rate which was recorded at 6.49 percent, a senior official said. "This is for the first time since the 1980s-1990s that industrial growth exceeds economic growth," Director General of Industrial Area Development of the Ministry of Industry, Dedi Mulyadi said here over the weekend. He said that six industrial groups experienced positive growth in the second quarter. It was also for the first time all industrial groups experienced positive growth.

Indonesian Stocks Recover, But Still Drop Monday
Indonesian stocks recovered from a 5 percent tumble in morning trade to close down 1.8 percent on Monday, following the downgrade of the United States' credit rating by Standard & Poor's. The bourse recovered in the afternoon session after the European stock market opened. Major indexes in Spain and Italy gained more than 3 percent after the European Central Bank signaled that it would buy bonds in those two countries to avoid financial collapses. The Jakarta Composite Index fell by 71.38 points, or 1.8 percent, to close at 3,850.27. More than 9.83 billion shares worth Rp 9.47 trillion ($1.12 billion) were traded. Decliners far outnumbered gainers by 226 to 50.

US Debt Downgrade to Have Little Short-Term Impact on RI
Bank Indonesia (BI) believes the downgrading of the US debt rating will not have a significant effect on Indonesia`s economy in the short run but it would be different in the medium and long terms. "Its short-term impact on Indonesia will not be big but clearly the global economic situation and conditions will change and it will certainly have an impact on global economic growth in the medium- and long-term ," BI Deputy Governor Halim Alamsyah said here on Monday. Quoting world economic experts` predictions Halim said the US and Europe would enter into a slow economic growth zone like what Japan has experienced and it would last long.

Finance Minister: Don't Panic; Market Testing The Water
A recent selling frenzy on the Indonesian stock market is nothing to panic about since it is "normal for the market to test the water" at uncertain times such as these, Finance Minister Agus Martowardojo says. Indonesia's benchmark stock index slumped 4.99 percent on the first session of market trading on Monday to 3,725, the lowest it has been since June, following massive sell-offs in markets around the region and around the globe. Trillions of dollars were wiped off global financial markets last week as investors feared an economic crisis following escalating debt woes in Europe and the United States.

Government to Raise Smallholder Business Credit Ceiling
The government is mulling to raise the ceiling of smallholder business credits (KUR) by 25 percent to Rp25 trillion from Rp20 trillion this year, a minister said. "The President has asked us to think of how to raise the amount of smallholder business credits now that the program has helped the people obtain loans without collateral," Coordinating Minister for Economic Affairs Hatta Rajasa said here on Sunday. He said more than a half of the target of smallholder business credits for 2011 had been channeled in the first semester of this year. Since the program was launched in 2007 it had helped around 600,000 small businessmen and nearly 10 of them had become new medium-sized businessmen, he said.

President Praises ASEAN's Economic Resilience Amidst Global Financial Crisis
President Susilo Bambang Yudhoyono has praised ASEAN for having been able to demonstrate its economic resilience, in the face of the recent global financial crisis. "The ASEAN region is predicted to grow between 5.7 percent and 6.4 percent this year, which is higher than the world average of 4.5 percent," the head of state said when giving a lecture to celebrate the 44th Anniversary of ASEAN here on Monday. He said the ASEAN member nations must must ensure that their people enjoy the economic benefits of the work of ASEAN.

ASEAN Now Able to Contribute to Global Agenda: President
President Susilo Bambang Yudhoyono said ASEAN now had a unique opportunity to transform the region, shape the architecture of Asia Pacific, and contribute to the global agenda. Speaking to an audience of 300 people comprising among others ASEAN member countries` ambassadors and officials at the ASEAN Secretariat here on Monday, the head of state outlined four opportunities for ASEAN to achieve those goals. "First, through its various dialogue mechanisms, and like no other regional organization, ASEAN has emerged to become an indispensable diplomatic hub in the Asia-Pacific," the head of state said.

Indonesia Determined to be Home of World Batik
Indonesia is determined to become the home of world batik following UNESCO`s decision to add the traditional dyeing technique to its Intangible Cultural Heritage, Industry Ministry spokesman Dody Soepardi said here on Sunday. "As a follow-up to UNESCO`s recognition, we continue to make every effort to develop batik," said Doddy, who is concurrently chairman of Indonesian Batik Foundation`s Board of Supervisors. He said that in the past two years Indonesia has been actively promoting batik at home and abroad through exhibitions.

Friday, August 5, 2011
Economy Grows 6.5 Pct in Second Quarter: BPS
Indonesia`s economy grew 6.5 percent year-on-year in the second quarter this year, according to the National Statistics Agency (BPS). "The growth figure is the same as that of the first quarter which was also 6.5 percent," BPS chief Rusman Heriawan said here on Friday. He said considering the decimal fractions the exact growth figure in the second quarter is 6.49 percent which is higher than the first quarter`s figure of 6.47 percent. "The second quarter is a little better than the first semester. Cumulatively the economic growth in the first semester this year compared to the same period of 2010 is at an average of 6.48 percent or 6.5 percent when rounded off," he said.

RI's Creative Product Exports Up 25.6 Pct
The value of Indonesia`s artistic work exports during January-June 2011 was recorded at 5.49 million US dollars, or up 25.6 percent from 4.37 million US dollars in the same period last year. "The increase was thanks to many factors, among other things promotion. But the main factor was the fact the Indonesian creative products are now of better quality," Deputy Trade Minister Mahendra Siregar said here on Thursday. Indonesia exports among other things paintings, sculptures, and wooden carvings. The markets of creative industry products have also expanded, according to the deputy minister.

BI Sets New Regulation to Prevent Fraud
Bank Indonesia is drafting a new regulation to anticipate fraud. The regulation will be cited in the bank's circular, said deputy governor Muliaman Hadad. "It refers to a regulation which concerns risk management because fraud is basically risk management," he said Wednesday. The law is expected to serve as a guideline for detecting fraud. Muliaman said the regulation would help banks mitigate fraud, cases of which have recently been highlighted in the media. In regard to a fraud case involving PT Elnusa's fund at PT Bank Mega, House of Representatives' (DPR) finance commission member Mohammad Ichlas el-Qudsi, asked Bank Indonesia to cash its escrow account of Rp191 billion which belongs to Bank Mega. The fund will be handed to Elnusa and the Batubara regency government in North Sumatra.

Government Says Protections in Place Against Economic Crisis
In the wake of a 4.9 percent drop in Jakarta's main stock index on Friday, the government is claiming it is well-prepared to ward off further damage in the event of a wider global economic crisis. "The government and Bank Indonesia are coordinating well and have a number of policy responses if something happens," Coordinating Minister for the Economy Hatta Rajasa said after a cabinet meeting to discuss the impact of Friday's economic downturn, which saw stock markets worldwide plunging on worries over the US economy and European debt. "We have sufficient budget in the state budget. The government and Bank Indonesia also have crisis management protocols. So we're optimistic that the economy will grow well."

Jakarta to Host Asia Pacific Youth Assembly on Environment
An Asia Pacific Youth Assembly (APYA) on Global Environmental Issues will be organized in Jakarta on September 6-10, 2011. "Until now, 30 young people from nine countries in Asia and the Pacific have been selected as delegates of their nations," Lidwina Marcella, the head of the Climate Change Champions Community secretariat of the London School of Public Relations, said on an e-mail message on Thursday. The Assembly`s theme will concern environmental issues and the role of the youth in promoting the life style.

RI to Have Batik Ambassadors
A Miss and Mr Batik contest will be organized to select Indonesian batik ambassadors, according to an official. The contest was aimed at encouraging the younger generation to love and be proud of batik as the national cultural heritage, Sapta Nirwandar, the culture and tourism ministry`s marketing director, said here on Thursday. "It`s also an effort to preserve and promote batik which has been recognized by UNESCO as an Intangible Heritage of Humanity in 2009," he said.

Thursday, August 4, 2011
Government to Offer ORI008 in October
The government plans to offer retail state bonds series 008 (ORI008) on October 7-21 to meet part of financing target in the 2011 state budget, a Finance Ministry official said. "Retail state bonds, including retail sharia bonds (sukuk) play an increasingly bigger role in contributing to the state budget," the director of the ministry`s state debt securities, Bimantara Widyajala, said when signing a cooperation agreement between between the government and ORI sales agents here on Wednesday. In 2011 ORI and retail sukuk were projected to contribute up to Rp18 trillion or 9 percent of the gross amount of state debt securities expected to reach Rp200 trillion, he said.

PLN Announces Plan to Boost Access to Power by 20 Percent
State utility Perusahaan Listrik Negara plans to increase its power supply by more than 20 percent to meet rising demand by consumers and companies in the world's fourth most populous nation. The company will provide an additional 7,100 megawatts of power by the end of this year, said Nasri Sebayang, PLN's director of planning and technology. PLN, which has a monopoly on electricity, supplies Indonesia's power grid with 31,000 MW. Java and Bali alone account for 28,000 MW. The nation of 240 million people is increasing its efforts to improve the electrification rate and reduce power outages that have become a common phenomenon in parts of the country.

National Leaders Agree to Maintain Political Stability
National leaders reached an agreement here on Thursday to maintain domestic political stability to create a conducive situation for economic development. The accord was achieved at a consultation meeting at the State Palace attended by heads of state institutions including the chairman of the People`s Consultative Assembly (MPR), Taufik Kiemas, Speaker of the House of Representatives (DPR) Marzuki Alie, chairman of the Regional Representatives Council (DPD) Irman Gusman, Constitutional Court chairman Mahfud MD and Judicial Commission chairman Erman Suparman. At the meeting, President Susilo Bambang Yudhoyono was flanked by Vice President Boediono and several ministers such as Coordinating Minister for Political, Legal and Security Affairs Djoko Suyanto, Coordinating Minister for Economic Affairs Hatta Rajasa, Coordinating Minister for People`s Welfare Agung Laksono, Home Affairs Minister Gamawan Fauzi and Foreign Minister Marty Natalegawa.

China to Make RI Reference for Overcoming Poverty: Minister
China will make Indonesia as a reference in overcoming various poverty problems that arise from income gaps in that country, a minister said. Minister for National Development Planning Armida Salsiah Alisjahbana said here on Wednesday that the fast economic growth in China had created income gaps of their people. She said that the income gaps eventually also created wide social gaps in China. "They will have consultations on poverty elimination next month and will make us a reference for their efforts of improving the welfare of their people," the minister said.

Wednesday, August 3, 2011
Economy: Sun Shines on Indonesia as Storm Clouds Brew Abroad
As heavily indebted developed economies struggled to grow this year, Indonesia's economy continued its rapid expansion. The United States, the largest economy in the world, last week posted an anemic 1.3 percent annualized growth rate for the second quarter, below economists' expectations, fueling concerns it might slip back into recession and hamper a global recovery. But Indonesia appears resilient to what is happening in the West. Growth in the country is likely to have steadied in the second quarter, thanks to a combination of high commodity prices, a pickup in investment and an increase in consumer spending.

News Focus: Growth of Industrial Products Encouraging
Although industries at home still depend on imported raw materials, yet their products are showing encouraging growth as reflected in their domination of the country`s non oil / non gas commodity exports. Besides, production of medium and large scale industries also showed an increase of 4.79 percent while that of small and medium manufacturing industries also increased by 1.4 percent. Thus, dependence on raw materials could be compensated with increased exports. "The increase in the exports of industrial products by 36.74 percent in the January - June 2011 period is likely due to the increase in the raw materials / auxiliary goods imports in the previous periods," Central Board of Statistics (BPS) Head Rusman Heriawan said on Monday.

Daily Value of Retail Bond Trading Reaches Rp 300 Billion
The volume of retail bond trading in the secondary market reaches Rp300 billion a day showing the liquidity of the instrument, a finance ministry official said. "There has been progress in which the daily trade volume reaches Rp300 billion," the director of state securities of the Directorate General of Debt Management, Bimantara Widyajala, said here on Wednesday. He said the trade volume was still far smaller than that of the conventional state bonds that reaches Rp8 trillion a day.

In a First, Indonesia May Export Premium Rice to South Korea
Indonesia may export 50,000 tons of premium quality rice to South Korea, the chief economics minister said on Wednesday, making it the first shipment of the grain to the country if the deal goes through. Indonesia's agriculture ministry added that an export license had been granted to suppliers in South Sulawesi. The South Sulawesi governor had requested permission to export 200,000 tons of premium rice to South Korea, but the Indonesian government would only consider 50,000 tons as a first step, said Hatta Rajasa, the coordinating minister for the economy.

Tuesday, August 2, 2011
RI's Exports May Hit Record High of $200 Billion
Indonesia`s exports may hit a record high of US$200 billion this year amidst the country`s improving trade surplus, the country`s chief economic minister said. "Thank God, our exports are on the increase. This suggests that our chance of raising exports to US$180-190 billion and even to US$200 billion is wide open although imports will also increase," Coordinating Minister for Economic Affairs Hatta Rajasa said following a coordination meeting here on Tuesday. He said the country`s trade surplus in the first half of 2011 which reached US$15.05 billion signalled that the export value could be achieved at the end of this year.

Inflation Rate Maybe Lower Than 5.65%: Minister
Chief Economic Minister Hatta Rajasa says the inflation rate this year will be likely lower than 5.65 percent, a figure enacted by the government and the House of Representatives in the newly-revised 2011 state budget. "The inflation rate [in July] was 0.67 percent, while the prediction was for between 0.5 and 0.7 percent. On year-on-year terms, we haven't even reached 5 percent, so I'm optimistic we can finish lower than 5.65 percent," Hatta said in Jakarta on Tuesday. The Central Statistics Agency reported on Monday that Indonesia's inflation rate stood at 1.74 percent between January and July. Year-on-year as of July, it was 4.61 percent.

RI Records 3.6 Million Tourist Arrivals in First Semester
The number of foreign tourist arrivals in Indonesia up to June 2001 was recorded at 3.6 million, up 6.42 percent from that in the same period a year earlier at 3.38 million, statistical data show. "The cumulative number of foreign tourist arrivals in the January - June 2011 period is recorded at 3,597,632 people which is 6.42 percent higher that in the corresponding period in 2010," Central Bureau of Statistics (BPS) Chief Rusman Heriawan said here on Monday. He said that with that figure it was still difficult for Indonesia to achieve its target this year which was set 7.7 million tourist arrivals.

RI Has Greater Chance to Enjoy High Economic Growth
Indonesia has a great chance to enjoy high economic growth because various economic problems were still being faced in the United States, Europe and other Asian countries, an economic observer said. "Indonesia still has a chance to boost further its economic growth as long as it optimizes its capital expenditure, particularly in the infrastructure which is still going nowhere," economic analyst and observer of PT First Asia Capital, Ifan Kurniawan, said here on Tuesday. Ifan said that if infrastructure was well prepared business players would increase the capacity of their production. With better infrastructure, he said, transportation cost would be cheap and the availability of stocks would be bigger.

Monday, August 1, 2011
Indonesian Economy Grew in Q2, Profits Indicate
Profits at some of the largest companies in Indonesia rose in the second quarter, boosting the case that the economy grew during that period. Bank Mandiri's net income in the April-June period rose 25 percent to Rp 2.54 trillion ($300 million) from a year earlier. The lender, viewed as a bellwether for the banking industry because it is the largest by assets, saw strong growth in its lending. The second-quarter figures for Mandiri and other companies were compiled by subtracting first-quarter data from unaudited first-half income statements that were released last week.

Investment in Oil and Gas to Increase US$68.43 Mln
Investment in oil and gas explorations in Indonesia will increase by US$68.43 million in the next three years, the director general of oil/gas of the ministry energy and mineral resources ministry, Evita Legowo, said. "The investment will come from the signing of seven cooperation contracts for coal bed methane (CBM) blocks and one for oil/gas block," she said at the signing of the contracts for the eight blocks here on Monday. At the signing event was also attended by the minister of energy and mineral resources, Darwin Saleh, and BP Migas chief R Priyono the government also received a signing bonus of US$13.26 million.

Rehabilitation of Papua Forests Needs Rp15 Billion
The Papua Natural Resources Conservation Center (BKSDA) will rehabilitate 5,000 ha of damaged conservation area in Papua. Some 2,000 ha of the damaged land will be rehabilitated in cooperation with the Cenderawasih Military District Command, based on a MoU between the forestry minister and the armed forces chief. "The 2,000 ha is located in a remote area which is hard to access and is unsafe," BKSDA Papua chief, IGNN Sutedja, said in Jayapura yesterday. The condition of 3,500 ha of land in Lorentz National Park and 100 ha in Wasur National Park in Merauke is critical. Around 1,400 ha area in the Mamberamo Foja animal conservation and tourism forest in Nabire will also be rehabilitated, as well as the mangrove area in Youtefa, Jayapura.

Food Price Falls Sink Indonesia Inflation to 14-Month Low
Inflation slowed to a 14-month low in July amid falling prices for food items, bolstering the case for the central bank to keep its key interest rate unchanged at next week's monetary policy meeting. The consumer price index increased 4.6 percent year-on-year in July, Central Statistics Agency (BPS) data showed on Monday. Price rises have not been that slow since May 2010, when the index rose 4.2 percent. It was also the sixth straight month that inflation eased, after peaking at 7.0 percent in January. July's inflation was also lower than the median estimate of 4.8 percent in a survey of 11 economists last week by the Jakarta Globe.

Investment in Industrial Plantation Concessions on the Rise
The Forestry Ministry says that investments in the forestry sector have increased despite the implementation of the Oslo moratorium (Norway agreement) this year. In the first semester, 12 companies were granted permits to invest Rp23.95 trillion for six years in Industrial Plantation Concessions (HTI), up from last year's total of Rp 2.63 trillion. The 12 companies will employ 5,532 workers, higher than last year's 3,514 workers. However, the land size for the HTI this year is only 373,000 ha, lower than last year's 405,000 ha.

Motor Show Books 30% Rise in Transactions
The 19th Indonesia International Motor Show (IIMS) 2011 concluded on Sunday evening, booking a total transaction value of Rp 3.27 trillion (approximately US$386 million), an increase of 30 percent from last year. "The total transactions were well above those of last year. We even recorded higher than our earlier target," said Andy Wismarsyah, the general manager of event organizer PT Dyandra Promosindo, on Sunday in Jakarta. Andy added that last year's show had recorded a total transaction value of Rp 2.52 trillion. "Earlier we had targeted an increase to Rp 3 trillion, but apparently it went over Rp 3.2 trillion," he said, as quoted by kompas.com.

Indonesia Set to Cut Palm Oil Export Tax Rate Amid Lobbying
Indonesia, the world's largest palm oil producer and exporter, could lower the maximum export tax rate by this month, a small concession by Jakarta to a powerful industry lobby that says the duty structure hurts trade. The existing palm oil export system was put in place to secure domestic supply and reduce volatility in cooking oil prices. In 1998, high cooking oil and other food product prices sparked riots in the country. The government now charges between 1.5 percent and 25 percent depending on average spot Rotterdam market prices in the preceding 30 days.