Tuesday, June 28, 2011
Foreign Investment to Indonesia to Increase: Observer
Money market analyst Farial Anwar has predicted that foreign investment in the domestic market would increase in the face of upward trend of the country`s economic growth. He said here on Monday that foreign investors, particularly those from United States and European countries were optimistic with their investment in the Asian countries, Indonesia in particular. Indonesia is expected to experience an economic growth by seven percent, Farial who is also Currency Management Group director, said. He said that Indonesia had a number of interesting factors such as the rupiah interest rate which reached 6.75 percent, guaranteed security stability and the convenience in making investment.

Government to Form Team to Implement Accelerated Development Plan
The Indonesian government will set up a team to ensure the successful implementation of its Master Plan for the Acceleration and Expansion of Indonesian Economic Development (MP3EI). "The team members will represent central and regional governments as well as businesses in all corridors," State Enterprises Minister Mustafa Abubakar said after attending a meeting on MP3EI at the office of the coordinating minister for economic affairs here on Monday. He said the MP3EI implementation team which combines representatives from central and regional governments and businesses from the Indonesian Chamber of Commerce and Industry (Kadin) reflected the unity and cohesiveness of economic players.

RI's Excise Receipts Reach Rp 32.74 Tln Until June 22
Indonesia`s excise receipts in the year ended June 21 reached Rp32.74 trillion, accounting for 52.17 percent of the target of Rp62.76 trillion set under the 2011 state budget, according to official data. Online data from the directorate general of customs and excise at the finance ministry on Monday also show state revenues from export tax climbed 301.66 percent to Rp15.41 trillion from the target of Rp5.11 trillion. State receipts from import duties meanwhile reached Rp11.27 trillion, accounting for 62.94 percent of the target of Rp17.90 trillion. The excise receipts represented a significant increase compared with the year ended May 6 when the figure was Rp23.88 trillion or 30.05 percent of the target.

President: Education Must Create Rational Community
President Susilo Bambang Yudhoyono said the country's education system must be able to create a rational and knowledgeable community to ensure the smooth process of development to meet its set targets. He made the statement when addressing members of the Association of Indonesian Private Universities (APTISI) at the presidential palace here on Tuesday. "The mission of universities is preparing human resources to make what we are doing in the country a success. I appeal to you to see the journey of the nation in its more strategic dimensions and with a far-reaching vision because a nation must have vision. It is dangerous if if a country or a nation has no idealism, no directions, ideals or goals," he said.

The Myth of The Indonesian Population Boom
In the Global Competitiveness Report recently released by the World Economic Forum, Indonesian competitiveness has made a significant improvement. According to the report, Indonesia ranks 44th among 139 countries, leaping by 10 places since 2005, the strongest progress among G20 member countries. The report states that "Indonesia now compares favorably with the BRICS, with the notable exception of China (27th). Indonesia precedes India (51st), South Africa (54th), Brazil (59th) and Russia (63rd)". A common indicator among the BRICS is their large population, and the report cites that among other indicators of social and economic improvement, Indonesia's huge population and its growing middle class have helped improve its competitiveness remarkably.

Monday, June 27, 2011
Government to Invest Rp 1.4T to Create Job Opportunities
The government has announced plans to channel Rp 1.4 trillion (US$ 162.4 million) to create job opportunities among efforts to prevent unemployment from increasing rising as a result of a recent moratorium on the sending of Indonesian workers to Saudi Arabia. Coordinating Economic Minister Hatta Rajasa said the money would be allocated from the 2011 State Budget. "Each minister is asked to make a budget reduction program, for example by reducing official trips and study tours which don't have many benefits," Hatta said Monday as quoted by tempointeraktif.com

JCI Marks Five-Day Win Streak As EU Eases Greek Fears
Indonesia's benchmark stock index advanced for a fifth day on Friday, amid hopes that Greece's financial condition will improve, staving off a global crisis. The Jakarta Composite Index advanced 24.91 points, or 0.7 percent, to close at 3,848.56. About 4.93 billion shares valued at Rp 3.67 trillion ($427 million) changed hands. Gainers trumped decliners by 150 to 78. Foreign investors bought Rp 407 billion more than they sold. The index rose 3.4 percent this week to be Asia's best performer, according to Reuters. "Regional markets rebounded [on Friday] because there was some progress in Greece the day before," said Bagus Hananto, a researcher at Onix Capital. "Indonesia's fundamentals remain strong to support the market."

No BI Rate Hike Likely as Inflation Wanes: Analysts
Inflation will continue to slow in June, according to analysts, as the effect of last year's electricity hike diminished, and that may allow the central bank to keep its key interest rate steady for the fifth straight month in July. Purbaya Yudhi Sadewa, chief economist at Danareksa Research Institute, a unit of state-brokerage Danareksa Sekuritas, is expecting annual inflation at 5.5 percent in June, compared with 5.98 percent in May - which was a seven-month low - and 6.16 percent in April. "There was this base effect of the electricity price hike, which will disappear from the calculation, and inflation will ease in June and in upcoming months," Purbaya said. "That would reduce the likelihood of the central bank to hike its key interest rate this year. Why? Because inflation is apparently under control. It is within the central bank's five-plus and minus-one percent range."

News Focus: Indonesia to Use Electronic ID Cards
As of 2011, the Indonesian government will start issuing electronic identification (e-ID) cards or locally called E-KTP for around 67 million people living in 187 districts/cities, out of a total of 178 eligible million throughout the country. "The remaining 105 million in 300 districts/cities (will have e-ID cards) in 2012," Dr Hammam Riza, head of the communications and information technology centre of the Technology Application and Study Agency (BPPT), said here recently. Mandated by Decree No.23/2006 on demographic administration, e-ID card pilot projects were carried out in six sub districts in six districts, by involving around 150,000 residents in 2010.

Indonesia, US Sign MoU for Environmental Cooperation
The Environment Ministry signed a memorandum of understanding with the United States' Environmental Protection Agency on Monday aimed at strengthening environmental cooperation between the two countries. "The MoU is a positive step in our efforts to face the tremendous challenges in protecting our environment," Environment Minister Gusti Muhammad Hatta said in a statement. "The EPA has had experience in dealing with various environmental issues such as with its bordering neighbors as well as in the rehabilitation of mining areas and areas suffering from heavy pollution. We believe that this collaboration will provide us with the knowledge and expertise to strengthen our efforts to minimize the impacts of environmental degradation in this country."

Indonesia to be Drug-Free by 2015
National Narcotics Agency (BNN) head, Gories Mere, is optimistic that Indonesia will be drug-free by 2015. He said this could be achieved if the 2011 - 2015 policies and national strategies were properly implemented. However, Gories said this was not easy because based on a survey by BNN and the University of Indonesia's (UI) Health Research Center, drug abuse is increasing every year. In 2008, he said, the percentage of drug abuse among Indonesians between 10 - 59 years old was 1.99 percent or 3.6 million people. In 2010, it was 2.21 percent or 4.02 million people. This year, the percentage increased to 2.8 percent or 5 million people.

Friday, June 24, 2011
Foreign Investors Upbeat on the Economy
Foreign investors are back re-accumulating shares, preventing the local bourse from falling amid weakening markets in the region. As a result, the index continues to rise for four days in a row this week. The composite stock price index (IHSG) at the Indonesia Stock Exchange (IDX), although it was overshadowed by profit-taking, closed with a slight gain of 1.818 points (0.05 percent) to the level of 3,823.65 yesterday. Helen, an analyst from PT Finan Corfindo, said foreign investors who bought shares in anticipation of incoming dividends managed to raise the index. They have been buying shares valued at Rp358 billion since Tuesday, followed by Rp528 billion on the next day. "The foreign investors recorded another net purchase at Rp696 billion, which shows that they still have faith in the domestic economy," said Helen.

Bali Drew One Million Foreign Tourists January-May 2011
Bali Island has attracted over one million foreign tourists during the first five months of 2011. Data of the Bali tourism office showed here Friday that during January-May 2011, Bali received a total of 1,031,316 foreign tourists, up 11.32 percent from 926,454 during the same period in 2010. An average of 200,000 foreign tourists visit Bali monthly. The number of tourists from ASEAN member countries, mainly Malaysia, Thailand, Singapore and the Philippines, in May 2011 increased to 28,819 from 20,630 in January 2011.

News Focus: Lake Sentani Festival Concludes With Lasting Memories
Having drawn tens of thousands of visitors for five days from June 19 - 23, Lake Sentani Cultural Festival 2011 (LSF 2011) in Jayapura district town of Sentani, Papua, was concluded with lasting memories on Thursday night. Even around ten thousands people, made up of local communities, domestic and foreign tourists thronged Kalkhote resort in Sentani on Thursday for the final day of the cultural festival. The closing day of the five-day festival at the tourist beach of Kalkhote got enthusiastic welcome from the people. Heavy rain on the final day of the event did not reduce the morale of local communities to watch the closing ceremony of the annual agenda in the tourism calender of the Indonesian easternmost province of Papua.

BP Migas Proposes Assuming Oil Production at 945 Thousand Bpd
The Oil and Gas Upstream Regulatory Agency (BP Migas) has proposed to set the assumed crude oil and condensate production figure in the Draft 2011 State Budget at 945,000 barrels per day. Head of BP Migas R Priyono here on Friday said he was optimistic crude oil and condensate production will reach the target even though oil production was currently still at 906,000 barrels per day. "We will continue to try," he said. According to him, his side has proposed a production target of 945,000 barrels per day to Minister of Energy and Mineral Resources Darwin Saleh.

Batik Painters Entitled to Apply Name on Product
The Law and Human Rights Ministry's Directorate General of Intellectual Property (HKI) asserted that batik painters have the moral right to apply their names on their work. The remark was made by Budi Suratno, the Classification and Examination Sub-Directorate chief, after speaking at a batik seminar in Yogyakarta, yesterday. Suratno went on to say that although the purpose was to recognize the painters, the decision to put their names must also be approved by the designer. Batik creation is a process carried out by many people, and, therefore, the agreement is an option. Technology and policy expert Rahardi Ramelan said that stamping the artist's name on a product-books, paintings, and batik-is more economical than registering the work to the HKI because the signature is already a form of copyright.

Harmony in Lombok
My adventure in Lombok shows that there is still hope to keep the spirit alive. Lombok is an island across the strait from Bali, dwelled by Sasak and Balinese. Locals and foreigners rub along very well in Gili Trawangan. It is a gili (Sasak's word of small island) with most population among the other two Lombok's north west gilis. Around an hour driving north from Lombok's capital Mataram, you will get to Bangsal, a small harbour to jump off to Gili Trawangan.

Thursday, June 23, 2011
Rupiah Gains After Global Funds Add to Indonesia Stock Holdings
Indonesia's rupiah strengthened for a second day after global funds added to holdings of the nation's assets to benefit from growth in Southeast Asia's biggest economy. Overseas investors bought $41.7 million more Indonesian shares than they sold yesterday, boosting net purchases for the year to $1.9 billion, according to exchange data. The MSCI Asia- Pacific Index of regional stocks gained for a second day after Greek Prime Minister George Papandreou won a confidence vote, spurring optimism the country won't default on its debt. "The confidence vote helped risk appetite, that's why we are seeing some positive reaction in the market, including the rupiah," said Gundy Cahyadi, a Singapore-based economist at Oversea-Chinese Banking Corp. "The market is still quite choppy and very sensitive to developments coming from Greece. Caution is still the word."

President Asks Regional Heads to Create Job Opportunities
President Susilo Bambang Yudhoyono has called on regional heads to create job opportunities in their respective regions to absorb domestic workers. Speaking in a press conference at his office here on Thursday, President Yudhoyono said if the regional heads were able to create sufficient job opportunities, domestic workers would not have to seek job overseas as migrant workers. The head of state also expressed hope that in the future Indonesian workers will no longer work abroad. According to the president, the creation of job opportunities could be done through the Master Plan for the Acceleration and Expansion of Indonesia`s Economic Development (MP3EI) which was launched by the government at the end of May this year.

News Focus: Unique Cultural Attractions to Enliven Sail Wakatobi 2011
Sail Wakatobi-Belitung 2011 is less than two months away while unique cultural attractions have been prepared to enliven the international marine event. While attending an international seminar as a speaker on global climate change, Wakatobi district head Hugua said over his cellular phone from Bangkok on Thursday the Wakatobi district government and local people had made various preparations to host Sail Wakatobi-Balitung as part of Sail Indonesia 2011. "To welcome the Sail Wakatobi-Belitung event in which world-class divers will take part, the Wakatobi district government and local people have prepared cultural attractions of Kabuenga, Bangka Mbule-mbule, and Karia to entertain the participants of the international marine event," Hugua said.

Jakarta To Be a Megacity, Says Fauzi Bowo
Jakarta Governor Fauzi Bowo says that Jakarta is set to become a megacity with a population of more than 10 million. "It will be one of the 20 megacities worldwide," Fauzi said yesterday. The current population of Jakarta is 8.5 million people, excluding seasonal residents, unofficial newcomers and commuters. As a megacity Jakarta will become a national and international hub, said Fauzi. "We must provide world-class facilities and infrastructure to support the city's development," he said. Fauzi said that one of the preparations included carefully drafting Jakarta's 2030 spatial plan. The draft is still being discussed by the House of Representatives (DPR).

Foreign Investment in Indonesia Lags Regional Rivals: Report
Foreign direct investment has shown little growth as a percentage of gross domestic product since 2008 and "continues to underperform that in regional peers," a leading bank says. DBS Bank research noted that latest figures showed FDI totals 2.3 percent of GDP, only moderately higher than the 2 percent rate prior to the worst of the global financial crisis. "Consensus opinion is that Indonesia needs greater foreign direct investment to address the economy's bottlenecks, strengthen its growth potential and boost employment," DBS's research division said in a report dated June 14 but circulated on Thursday.

Wenesday, June 22, 2011
Optimism Causes Index to Soar
The emerging optimism among investors towards the publication of the second quarterly financial report may ease concerns at Wall Street. The investors, for the moment, have gotten rid of their anxiety over Greece's debt crisis. The positive sentiment affected regional trading, including in Jakarta. In yesterday's trading, the composite stock price index (IHSG) at the Indonesia Stock Exchange (IDX) closed with a sharp gain of 65.817 points (1.76 percent) to the level of 3,794.939. Andy Wibowo Gunawan, an analyst from PT Reliance Securities, said that the strengthening of the New York Stock Exchange, followed by the strengthening of the regional exchanges and the increase in oil prices, triggered the increase in the local index.

Investment in Housing Growing by 60 Percent
Developers are accelerating their housing projects to meet a 60 percent increase in demand for re-investment. "Young professionals are the main enthusiasts who are taking advantage of available mortgages," said Muhammad Reza Makkawaru, the Imperium Mice CEO, yesterday. According to Reza, investment in the housing sector has been growing since 2010, with many transactions recorded during exhibitions. The sale of homes for investment represent are 60 percent of demand, while the remaining 40 percent are for residential needs. "The need for personal housing is no longer the main priority. Most buyers already own one maybe three housing units, which are seen as long-term investment," he said.

RI, Norway Mark 10th Anniversary of Human Rights Dialog
Indonesia and Norway marked the 10th anniversary of their human rights dialog in Oslo, Norway, on Tuesday, Norwegian Foreign Minister Jonas Gahr Stare and Indonesian Director General of America and Europe Ambassador Retno Marsudi representing Foreign Minister Marty Natalegawa jointly opened the dialog, the third secretary for information and socio-cultural affairs at the Indonesian Embassy in Oslo, Febby Fahrani said in an emailed statement to an ANTARA News correspondent in London on Wednesday. The dialog was divided into three working groups each dealing with human rights and security, child rights, and interfaith dialog and culture of tolerance.

Suzuki Eyes RI as Production Hub With $800 Million Project
Japanese automobile and motorcycle manufacturer Suzuki said it would spend up to US$800 million over the next few years to strengthen its business in Indonesia, which would become its regional production base. Industry Minister MS Hidayat said Tuesday that the firm would set up a new plant in West Java and increase the production capacity of its existing plants in Tambun, Bekasi, West Java as part of the expansion plan. "Suzuki Motor chairman Osamu Suzuki will come here on July 4 to announce the $800 million investment and declare Indonesia its production base for exports," he said.

Government Raises July CPO Export Tax to 20 Pct
The government has raised export tax on crude palm oil for July to 20 percent from 17.5 percent for June, citing a rise in the average price of the commodity in the global market. The reference price of CPO for July shipment is US$1,096 per ton, Director General of Foreign Trade at the Trade Ministry Deddy Saleh said in a short message text on Wednesday. He said the export reference prices of CPO derivatives for July such as crude olein were set at US$1,174 per ton, RBD palm olein US$1,181 per ton, RBD palm kernel olein US$1,194 per ton and crude stearin US$1,073 per ton.

UNESCO Sets Wakatobi as World Biosphere Reserve Soon
UNESCO will soon set the Wakatobi marine waters as world biosphere reserve, Wakatobi district head Hugua said here on Wednesday. "UNESCO plans to hand over a charter to stipulate Wakatobi as world biosphere reserve to Wakatobi district administration in September 2011," Hugua said. UNESCO sets Wakatobi as world biosphere reserve because 90 pct of its waters has all types of coral reefs in the world. "Some 750 of 850 species of world coral reefs are found in Wakatobi waters," Hugua said. In addition, Wakatobi marine waters are also the habitat of various types of marine life including 942 species of fish, Hugua said.

US Companies Refocus on Shoe Making in Indonesia
At least one US shoe maker plans to build a factory in Indonesia, and other US companies are exploring opportunities to collaborate with local producers, to make footwear for both countries, an industry representative said on Tuesday. "They are now exploring opportunities," said Edi Widjanarko, chairman of the Indonesian Footwear Association (Aprisindo), after meeting the Footwear Distributors and Retailers of America (FDRA) at the Ministry of Trade office in Central Jakarta. Edi said he knew of a plan by a US company to build one or two new factories here and that investment could happen as soon as this year.

Three Things Indonesia Needs to Do To Start Competing With Regional Rivals
At the World Economic Forum in Jakarta this month, countries were urged to pursue increasing economic openness and competitiveness to drive new growth in Asia. For a country like Indonesia, which has concentrated on an ever-expanding domestic market, the forum was a timely call for a review of export policy, openness and competitiveness. In some respects, the nation looks remarkably positioned to respond to such a call. The most recent WEF Global Competitiveness Report ranks Indonesia 44th in its overall index, behind Thailand at 38 and Malaysia at 26. The ranking is based on factors critical to a country's capacity to produce competitive exports, particularly quality of infrastructure, technological readiness and human capital. Indonesia has managed to narrow the gap with Thailand and Malaysia since last year, climbing 10 places while its peers have fallen four places each.

RI Hopes Ban Ki-Moon to Champion Developing Countries' Interests
Indonesia hopes UN Secretary General Ban Ki-moon would keep promoting the interests of developing countries and advance the partnership between ASEAN and the UN. The country`s permanent representative to the UN, ambassador Hasan Klieb, expressed the wish here on Tuesday following Ban Ki-moon`s confirmation as UN Secretary General for the second term from January a, 2012 to December 31, 2016. Ban`s second term was confirmed in a resolution approved by acclamation at the UN Headquarters by the UN General Assembly members from 192 countries including Indonesia. Hasan said he hoped Ban could lead the UN effectively, efficiently and transparently and prioritize the interests of developing countries in all their aspects including in achieving millennium development goals, climate change, disaster handling and poverty issues.

Tuesday, June 21, 2011
JCI Stocks Bounce Back With News From Europe
Indonesia's benchmark stock index rebounded on Monday, halting a two-day slide, on optimism that European leaders would meet to prevent a financial crisis in Greece from deepening further. The Jakarta Composite Index gained 6.8 points, or 0.2 percent, to close at 3,729.12. About 4.1 billion shares valued at Rp 3.24 trillion ($375.8 million) changed hands. Overseas investors, though, were net sellers, having sold Rp 40 billion more in shares than they purchased. German Chancellor Angela Merkel on Friday retreated from demands bondholders be forced to shoulder a "substantial" share of a Greek rescue, saying she'll work with the European Central Bank to avoid disrupting markets. Still, euro-zone finance ministers who met on Sunday put off a decision on whether Greece would get the full amount promised for July and pushed the country to press ahead with budget cuts.

With Over 200 Candidates, KPK Selection Can Begin
Antigraft heavyweights like money laundering watchdog chief Yunus Hussein and human rights activist Bambang Widjojanto are among those who have thrown their hats in the ring to become an antigraft commissioner through 2014. After registrations officially closed on Monday, Minister of Justice and Human Rights Patrialis Akbar said 233 people had applied. "The KPK [Corruption Eradication Commission] selection committee will select eight names [for four positions]. We will then forward these names to President Susilo Bambang Yudhoyono and the House of Representatives," Patrialis said.

Rupiah Gains on Easing Greek Concern, Bonds Decline
The rupiah advanced the most in three weeks as concern that Greece would default on its debt eased, boosting investor appetite for emerging-market assets. The MSCI Asia-Pacific Index of regional stocks rose for the first time in a week after Luxembourg Prime Minister Jean-Claude Juncker said Greek Prime Minister George Papandreou had assured him that his government would take the steps needed to obtain financial aid from the European Union and the International Monetary Fund. "The market believes the European Union is close to an agreement to help Greece," said Mika Martumpal, a currency analyst at PT Bank Commonwealth in Jakarta. "Stocks in Asia are up."

Program to Boost Farmers' Market, Internet Savvy
A total of 360 farmers from across the country are being trained to use the Internet as part of efforts to help them seek solution to their daily problems and follow the prices of the commodities they plant. The training, which started on Saturday and runs until Thursday, divided participants into nine classes, said Bayu Mulyana, the head of the training and information development agency at the Agriculture Ministry. Taking place in Tenggarong Seberang, the training was among the initiatives to celebrate the National Week for Farmers and Fishermen.

House Approves Rp 30.2T in Underlying Assets for Sukuk
The House of Representatives approved on Tuesday the government's proposal for the use of state properties worth a total of Rp 30.2 trillion (US$3.5 billioin) as underlying assets for state sukuk (sharia bonds) it issues this year. Finance Minister Agus Martowardodjo said underlying assets was a principle requirement for sukuk issuances, thus it was necessary to continue to support Indonesia's promising sukuk market, citing the always "oversubscribed" status of the state sukuk the government had issued so far. He explained before lawmakers of the Comission XI overseeing financial affairs, however, that the to-be-issued sukuk were not intended for specific projects, but were intended to generally help the government cover the 2011 state budget deficits.

RI Organizes Road Show in Houston
An Indonesian delegation made up of representatives of various government and non-governmental bodies organized a Tourism, Trade, Investment and Service (TTIS) Road Show in Houston, Texas, the United States on Friday (June 17). The Road Show was highlighted with a business meeting and networking by the delegation consisting of officials from the coordinating economic ministry, the foreign affairs ministry, the HIPMI (Association of Indonesian Young Entrepreneurs), BNP2TKI (the National Board for Placement and Protection of Indonesian Migrant Workers), and KJRI (the Indonesian Consulate General) in Houston, a KJRI press statement said here Monday. "The event is part of the Tourism, Trade, Investment and Service Road Show organized in a number of US cities," Indonesian Consul General in Houston Al Busyra Basnur said in the statement.

U.S. Navy Expands Partnership With Indonesian Navy
The U.S. Navy will continue to expand its strong and growing friendship with the Indonesian Navy, U.S. 7th Fleet Commander Vice Admiral Scott Van Buskirk said on Friday, according to the US embassy here on Tuesday. Admiral Scott Van Buskirk made the remaks when he spoke to approximately 100 students at the Indonesian Navy`s staff college. His remarks came on the heels of a meeting with Indonesian Navy Chief of Staff Adm. Soeparno. The two met on Thursday to discuss areas of mutual concern, including piracy and maritime security. It was their first meeting since Van Buskirk took command of the 7th Fleet in September 2010. Van Buskirk said the annual exercise Cooperation Afloat Readiness and Training (CARAT), which concluded in Indonesia earlier this month, would continue to be the centerpiece of U.S.-Indonesia navy-to-navy engagement, but that the two sides would seek to "grow CARAT in scope and depth in the future, while looking for new opportunities outside of CARAT to work together."

Monday, June 20, 2011
Indonesian Rupiah, Bonds Gain After Funds Buy Local Assets
Indonesia's rupiah advanced for a second day and bonds rose after global funds boosted holdings of the nation's assets to benefit from growth in Southeast Asia's biggest economy. Overseas investors bought $238.1 million more Indonesian shares than they sold last week, exchange data show. Offshore funds increased ownership of government debt by 5.2 percent to Rp 237.12 trillion ($27.6 billion) this month through June 16, according to the debt management office. The economy will expand at the "upper end" of a range of 6 percent to 6.5 percent this year, according to Bank Indonesia. Gross domestic product rose 6.1 percent in 2010. "Investors are buying Indonesian assets because the country's fundamentals are strong and growth is robust," said Lindawati Susanto, head of treasury at PT Bank Resona Perdania in Jakarta. "However, we can expect volatility in the market due to concerns about the debt crisis in Europe."

RI's 2011 Coffee Production Estimated at 699,000 Tons
The Indonesian Coffee Industry and Exporters Association (AEKI) has predicted the country`s coffee production this year will be 600,000 tons or lower than last year`s figure at 640,000 tons. "Last year, the country`s coffee production was about 640,000 tons," AEKI Chairman Suyanto Husein said here on Friday. He said that his organization had predicted early this year that Indonesia`s coffee production could reach 700,000 tons but it was later revised down to 600,000 tons. "There is an indication of decreasing production in a number production centers in the regions due to bad weather," he said. The AEKI chairman said that the drop in the coffee production was due in part to the increasing acreage of old plants besides unfavorable weather conditions.

Indonesian Garments Ready for US Market
The garment industry is ready to boost exports to the US to replace a slump in Chinese imports. "The US is seeking alternative garment and textile suppliers," Indonesian textile secretary-general Ernovian G. Ismy said yesterday. Almost 100 percent of US garment demand relies on imports from China, but higher labor costs in China are driving up prices. In Southeast Asia, Indonesia has the biggest potential as an alternative supplier. "Indonesia is the most prepared with one-stop service requirements. The downstream and upstream industry is available here," said Ernovian. Indonesia's garment industry is targeting the US as a main export market. Garment exports to the US accounted for 36% of total garment exports last year, reaching a total US$ 11.2 billion. The US market was followed by the EU, which accounted for 18% of garment exports.

Some 440,000 Foreign Tourists Expected to Visit Borobudur in 2011
A total of 440,000 foreign tourists are expected to visit the Borobudur Temple in Central Java in 2011, a temple management official said. "The number of foreign tourist arrivals at Borobudur has been quite encouraging lately despite several tragic events such as the eruptions of Mount Merapi which has now returned to its dormant state," president director of the Borobudur-Prambanan-Ratu Boko Tourism Park Purnomo Siswoprasetyo said here Friday. The number of tourists visiting Borobudur had never decreased and leading travel agents had now included Borobudur and Prambanan tours in their itineraries, he said. "Therefore, we are iotimistic that the number of tourists visiting Borobudur will rise in the coming years," he said.

VP: ASEAN Facing Serious Challenges
ASEAN is facing serious challenges concerning migrant worker protection, human trafficking, and drug trafficking, according to Vice President Boediono. All ASEAN members must cooperate to deal with those problems including by involving the private sector and civilians, Vice President Boediono said here Monday in his opening remarks at the Third Conference of the ASEAN Region Crime Prevention Foundation (ARCPF). Among those present in the opening ceremony were Coordinating Minister for Political, Legal and Security Affairs Djoko Suyanto, Chief of the Indonesian Defense Forces (TNI) Admiral Agus Suhartono, Deputy Chief of the National Police Commissioner General Nanan Soekarna, and ARCPF Chairman Da`i Bachtiar.

VP: Indonesia Must Always Have Sufficient Food Stocks
Vice President Boediono said Indonesia must always make sure it has sufficient food stocks because food shortages would have far-reaching and fatal consequences such as the threat of poverty, social unrest, security disturbances and other problems. "Food scarcity can result in an increase in social disturbances and security threats," Boediono said in remarks at the opening of the 13th National Farmer-Fishermen`s Week here on Friday. He said agriculture in Indonesia and the world was now facing its greatest-ever challenge, namely the threat of food scarcities. Therefore, he said, national farmers must work with the aim of increasing food production.

Friday, June 17, 2011
Banking Sector Poised for Strong Growth: Perbanas
Indonesian lenders recorded 23 percent growth in their earnings over the first four months this year from the same period a year ago, central bank data showed on Thursday. Sigit Pramono, the chairman of Indonesian Banking Association (Perbanas), said the data affirmed predictions that lenders here would continue raking in healthy profits thanks to expected strong loan growth. "Some factors that need to be watched include the prospects of the global economic recovery, which may affect liquidity at home," he said. Bank Indonesia data showed lenders made Rp 23.94 trillion ($2.8 billion) from January through April, up from Rp 19.44 trillion in the same period a year ago. Last year, lenders saw their net profits grow 26.74 percent.

Indonesia Becomes Fisheries' Regional Center
Indonesia was asked to become the Regional Center for Inland Fisheries Development. This was stated today (June 17) by Marine and Fisheries Minister, Fadel Muhammad, after attending the Ministrial Meeting which opened by Thailand Vice Prime Minister, Trairong Suwankhiri in Bangkok, Thailand. "This is an honor for Indonesia to be trusted by SEAFDEC (South East Asian Fisheries Development Center) countries member as a place to the sub-commision organization activities which was initiated by Japan. According to Fadel, as one of the marine and fisheries producer countries in the world, role of Indonesia in development and construction in fisheries sector is highly valued by other countries. Another honorary for Indonesia is in this Ministrial Meeting, Indonesia is trusted to be vice chairman together with Thailand which will be a host as well as chairman for the meeting.

Eight Major SOEs Invest Rp 506 Trillion
Eight state-owned enterprises (SOEs) are included in the Master Plan for the Acceleration and Expansion of Indonesia's Economic Development (MP3EI). The total investment allocation of the plan will total Rp506.54 trillion from 2011-2014. SOE Minister Mustafa Abubakar said that state-owned companies were committed to allocating Rp836 trillion to support its implementation. Next Tuesday, June 21st, the government is planning to inaugurate the construction of Sepinggan Airport's new terminal and a Pupuk Kaltim V factory. "This month we will be reporting to the President on the implementation of the MP3EI in the first quarter. Hopefully, the implementation will stimulate investment in other sectors, not only the SOEs," said Mustafa yesterday.

Indonesia Observes World Ocean Day
Marine Affairs and Fisheries Minister Fadel Muhammad and Defense Minister Poernomo Yusgiantoro were present at the commemoration of the World Ocean Day here Thursday. "Local governments must have an awareness of the importance of developing the oceans for the future of the nation," Fadel said. The commemoration was also a momentum for people to contemplate, initiate, and take steps to deal with challenges faced by the global community concerning the ocean. Oceans have important functions for food security, nutrition security, health and life survival, according to him. He said oceans have power to affect climate and the Earth directly and indirectly . In daily activities, we enjoy the marine services, such as for transportation, consumption, and recreation.

Government to Offer Bonds Worth Rp 7 Tln
The government plans to offer state bonds worth Rp7 trillion in an auction on June 21 to meet part of its financing target in the 2011 state budget. The bonds up for the auction will be series SPN20110922 which constituted new issues. The discount rate bonds would mature on September 22, 2011, Director General of Debt Management at the Finance Ministry Rahmat Waluyanto said in a press statement on Thursday. The others would be series SPN20120608, FR0053, FR0054 and FR0057, which were the reopening of the existing issues, he said. The discount rate bonds series SPN20120608 would mature on June 8, 2012, he said.

Government Earmarks Rp 65.2 Trillion for Drinking Water Projects
The government is preparing Rp65.2 trillion for the development of drinking water facilities in cities and rural areas up to 2014, a vice presidential spokesman said. "The development of drinking water facilities must be able to achieve the millennium development goals (MDGs) in 2015," Yopie Hidayat said here on Friday. He said that people who on national scale would have access to drinking water would be about 68.87 percent, while at present only about 47.71 percent of the people already had access. The presidential spokesman made the remarks after a meeting on public water facilities between Vice President Boediono and Public Works Minister Djoko Kirmanto here on Friday.

Global Entrepreneurship Delegation to Visit Indonesia
A Global Entrepreneurship Delegation of 13 leading American entrepreneurs and early-stage investors will visit Indonesia, July 19-24, 2011, the US embassy announced here Thursday. The Entrepreneurship Delegation will be led by Steven Koltai, the State Department`s Senior Advisor for Global Entrepreneurship, and will be hosted by the Global Entrepreneurship Program Indonesia (GEPI). The Entrepreneurship Delegation will enhance U.S. and Indonesian efforts to promote entrepreneurship and strengthen business ties under the Comprehensive Partnership. Improving trade and investment is one of the six pillars of the Comprehensive Partnership.

President Expresses Heartfelt Support, Solidarity, Admiration For Japan
President Susilo Bambang Yudhoyono has expressed heartfelt support, solidarity and admiration for Japan in the aftermath of deadly tsunami. "This is why I am here in Japan today. I have been to Japan four times during my Presidency. But this time, I have come solely for the purpose of extending our heartfelt support and expressing Indonesia`s solidarity and admiration for Japan, in this darkest hour of post-tsunami crisis," Yudhoyono said when speaking in the general lecture at the National Graduate Institute for Policy Studies (GRIPS) here Friday. He said the people of Indonesia know exactly how the Japanese people feel as Indonesia had experienced the worst disaster ever in 2004, during the earthquake and tsunami in Aceh and Nias.

Thursday, June 16, 2011
WB : RI Among Emerging Markets Redefining Global Economy
By 2025, Indonesia will be among six major emerging economies to account for more than half of all global growth, says a new World Bank report. "Other emerging economies include Brazil, China, India, South Korea, and Russia, and as economic power shifts, these countries will help drive growth in lower income countries through more commercial and financial transactions," said the report which was first released on May 17, 2011 in Washington D.C. International trade in general is expected to rise significantly for emerging economies by 2025. For example, the value of Indonesia`s exports is likely to double between 2010 and 2025. The value of its imports is expected to be more than one-and-a-half times higher by 2025. Over the same period, global trade - as a contribution to global output - is expected to go up from 49.9 percent to 53.6 percent. With a growing middle class in developing countries, consumption trends are likely to strengthen, and eventually become a source of sustained global growth.

Entrepreneurship Movement Expected to Induce Higher Economic Growth
The chairman of the Indonesian Young Businessmen`s Association (HIPMI), Erwin Aksa, said the entrepreneurship movement should be able to induce an increase in the country`s economic growth. "We have to begin from small and simple things that can have great effect," he said here on the sidelines of the 39th anniversary of HIPMI and the declaration of a HIPMI-College collaboration program here on Wednesday. The HIPMI anniversary observance was also attended by Vice President Boediono who gave his directives. "Business opportunities must emerge among the public," he said.

News Focus: Lake Sentani Festival to Showcase Papua's Cultural Diversity
The much awaited Lake Sentani Festival to be held on June 19-23, 2011 (LSF 2011) is designed to give visitors an insight into Papua`s cultural diversity. In the easternmost Indonesian province with 30 districts and at least 250 different tribes and languages, Papua cannot be compared with any other province for its rich cultural diversity. The exquisite tribal arts, known all over the world, are made by among others the tribes of Asmat, Kamoro, Dani, and Sentani. Although the impact of modernization brings daily change to Papua, much of the inherited social structure, arts and culture have remained unchanged.

EU Hopes For Increased Investment in Indonesia
The European Union (UE) hoped a comprehensive economic cooperation with Indonesia under the Comprehensive Economic Partnership Agreement (CEPA) could raise the investment opportunities for European companies in Indonesia. "In the short run, we hope to raise investments here," head of an EU delegation/ambassador Julian Wilson said following an Indonesian-EU vision group recommendation in Jakarta Wednesday. He said under the cooperation, the EU wished for a conducive climate for its business players in Indonesia. He said while the EU is still the second biggest investor in Indonesia after Singapore, direct EU investment to Indonesia was still small than that of the entire Asia. "Investment in Indonesia accounted for only 1.4 pct of EU`s direct investment in Asia," he said.

Vice-President Wants Entrepreneurship Taught at Campuses
Vice President Boediono wants entrepreneurship to be a course in every faculty of universities in Indonesia. "I have conveyed this to the National Education Minister to be developed in all universities and faculties because students are the ones who will eventually become our entrepreneurs," he said in Bandung yesterday. Boediono made his remarks during the 39th anniversary celebration of the Indonesian Young Businessmen Association (Hipmi). A University Hipmi declaration was also made during the event, attended by representatives from 100 universities from all of Indonesia's provinces. The important thing is to continue and pave the way for students who are already entering the business sector through their activities. Boediono added that these beginners require mentoring and guidance in the form of practical instructions on how to become a businessman.

Wednesday, June 15, 2011
RI Among Emerging Markets Redefining Global Economy
By 2025, Indonesia will be among six major emerging economies to account for more than half of all global growth, says a new World Bank report. "Other emerging economies include Brazil, China, India, South Korea, and Russia, and as economic power shifts, these countries will help drive growth in lower income countries through more commercial and financial transactions," said the report which was first released on May 17, 2011 in Washington D.C. International trade in general is expected to rise significantly for emerging economies by 2025. For example, the value of Indonesia`s exports is likely to double between 2010 and 2025. The value of its imports is expected to be more than one-and-a-half times higher by 2025. Over the same period, global trade - as a contribution to global output - is expected to go up from 49.9 percent to 53.6 percent.

Indonesia Can Achieve Growth, Environmental Protection: SBY
President Susilo Bambang Yudhoyono told CNN that Indonesia could concurrently achieve the goals of environmental protection and economic growth. "My government has declared that we are committed to a 26 percent reduction of emissions by the year 2020. This is a very important step," Yudhoyono Yudhoyono said during an interview with host Andrew Stevens for the program Talk Asia. "We have to continue to really protect our forests, our environment and prevent destruction in the future." The government recently imposed a two-year moratorium to ban new permits to clear primary forests and carbon-rich peatland, but many activists believe the moratorium does not go far enough to protect Indonesia's remaining forests.

Chevron Bets on $30b Volcanoes in Indonesian Rainforest
Chevron Corp. drilled 84 wells to a depth of two miles beneath the Indonesian rainforest to tap steam, not oil and gas, that's trapped in the world's richest store of volcanic energy. The geothermal plant, set among wild orchids and bamboo trees, uses 315 degree Celsius heat to spin turbines 24 hours a day, generating electricity for Jakarta, a four-hour drive to the north. The oil driller, which pioneered geothermal energy 20 years ago in Southeast Asia's biggest economy, is about to see competition. Companies from General Electric Co. to India's Tata Corp. are leading an investment boom in Indonesia that may climb to more than $30 billion, anticipating President Susilo Bambang Yudhoyono will honor his promise in February to boost clean- energy subsidies.

Indonesian Companies Band Together To Form Disaster Response Network
Companies in disaster-prone Indonesia plan to use their resources to prepare for and respond to calamities by adapting the World Economic Forum's partnership model. Willem Rampangilei, a deputy minister at the Coordinating Ministry for People's Welfare, said on Sunday that the Indonesia National Network of the WEF's Disaster Resource Partnership would serve as an independent network of private companies in which the aim was to save lives and alleviate suffering by harnessing the strength and assets of the engineering and construction sector. "The main idea is that we are exploring what the private sector can do in responding to the challenges of natural disasters which are very complex and multi-dimensional," Willem said at a press conference to launch the DRP network on the first day of the World Economic Forum on East Asia in Jakarta. This initiative would be independent and the private companies in the network would coordinate among themselves in their pro bono work when responding to natural disasters in accordance with their own line of businesses, which range from transportation and logistic to telecommunications infrastructure, he said.

Index Continues to Rise
Optimism towards economic growth in China supported by the improvement of the Chinese economy data, as quoted yesterday, has revived the regional and local stock markets. The Dow Jones Futures index which rose 76 points as of 17.01 Western Indonesia Time, indicated that the stock exchange in Wall Street will move positively. The condition can trigger yet another increase in the composite stock price index (IHSG). Helen, an analyst from the PT Finan Corfindo Nusa, said that if the economic data from the United States released early on Wednesday turns out positive and Wall Street is getting stronger, the index might rise.

ILO Lauds RI's Efforts to Ratify Eight Key Conventions
The International Labour Union (ILO) has lauded the Indonesian government`s decision to ratify ILO`s eight key conventions, making it the first Asia Pacific country to ratify them. "ILO has eight key conventions and Indonesia is the first country in Asia and the Pacific to ratify all of them," ILO Director General Juan Somavia said at a special meeting of the 100th ILO Conference in Geneva on Tuesday. The eight conventions are Convention No. 87 on the Freedom of Assembly, Convention No. 89 on the Abolition of Forced Labour, Convention No. 100 on Equal Remuneration for Male and Female Employees, Convention No. 101 on Discrimination in Respect of Employment and Occupation, Convention No. 138 on Minimum Age for Admission to Employment and Convention No. 182 on the Worst Form of Child Labour.

Indonesia, EU Seek 'Ambitious' Free Trade Agreement
Indonesia and the European Union (EU) have agreed to commence talks on an "ambitious" free trade agreement (FTA), as both parties seek to boost two-way trade and the EU's investments in Indonesia. The European Union is currently negotiating similar trade agreements with a number of other Asian countries including Singapore, South Korea and Japan; and Indonesia doesn't want to be left behind, Djisman Simanjuntak, co-chair of the Indonesia-EU Vision Group, said Wednesday in Jakarta. The group, established in late 2009 based on an initiative from Indonesian President Susilo Bambang Yudhoyono and European Commission President Jose Manuel Baroso, handed over on Wednesday its recommendations to the Indonesian government, including for the commencement of negotiations on a Comprehensive Economic Partnership Agreement (CEPA).

Tuesday, June 14, 2011
Government Agrees on 6.6-6.7% Growth for 2012
The government has bowed to the House of Representatives' wishes and agreed to raise the 2012 economic growth assumption to between 6.6 and 6.7 percent. The government earlier proposed to the House a 6.5 to 6.9 percent economic growth for 2012, but lawmakers demanded in a hearing that concluded in the wee hours of Tuesday morning that the growth assumption be raised to between 6.6 and 6.7 percent. "With a true sense of partnership, and high degree of caution, we agree to raise the economic growth assumption," Finance Minister Agus Martowardodjo said toward the end of the hearing. Agus' statement prompted laughter and applause from both lawmakers and government officials attending the hearing, which had began at 11 a.m. on Monday, tempointeraktif.com reported.

BKPM: Investors in WEF Interested in RI
The Capital Investment Agency (BKPM) said foreign investors in East Asia World Economic Forum (WEF) in Jakarta from June 12 to 13, 2011, were very interested in Indonesia. "Many came to Indonesia to express their interest in making investment in the sectors of tourism, trade and infrastructure," BKPM chief Gita Wiryawan said here Monday. He said EA WEF was attended by 625 delegates from many countries who managed to objectively raised Indonesia`s branding at local and international level. Gita said that in the forum many who have made an investment in Indonesia wished to increase their investment and those who have not yet made an investment expressed commitment to make an investment in this country.

Indonesia Calls for Protection of Domestic Migrant Workers
Indonesia has called on member countries of the International Labor Organization (ILO) to protect domestic migrant workers. Indonesian President Susilo Bambang Yudhoyono, speaking at a session of the 100th ILO conference here on Tuesday, said "We must support the ILO Convention on Decent Work for Domestic Workers which I believe will be adopted by the world labor conference." Yudhoyono said there were around 150 million migrant workers recorded across the world. He said these workers played an important role in the current era of social justice. He said no country should ignore the contribution of migrant workers to the world labor market.

Global Demand Set to Push JCI Skyward, Brokers Say
A wave of broker recommendations has put the spotlight back on Indonesia as a combination of rising global commodity demand, stable interest rates and bullish growth make the country's shares an attractive investment. The Jakarta Composite Index may rise 15 percent this year, said Katarina Setiawan, head of research at Kim Eng Securities in Jakarta. Kim Eng, which last year was the second-most active broker by total value, forecasts Indonesia's benchmark index will climb to 4,250 by the year's end. On Tuesday, the index gained 0.7 percent to 3,773.27. "Sector-wise, I still like the coal and banking sectors," Katarina told the Jakarta Globe on Monday.

Hatta: Microsoft Offers Development Of Science And Technology in RI
Coordinating Minister for Economy n Hatta Rajasa said Microsoft has offered the development of innovations of science and technology in Indonesia and take part in the Indonesian Economic Acceleration and Expansion Master Plan (MP3EI). "He offered a cooperation in the development of MP3EI program, especially in terms of connectivity, human resources and innovation of those with a great interest in the development of human resources and innovation programs by way of training in building start up companies," he said after receiving CEO of Microsoft here on Monday. Hatta also said that Microsoft is also working together with the Ministry of Education in building program relating to education because this sector also indirectly supports the MP3EI program.

Thailand to Learn More From RI on Settling Insurgency: Official
Thailand will certainly learn more from Indonesia which has succeeded in settling a prolonged Muslim insurgency in Aceh as a way out of the conflicts often triggered by certain groups in the Southern part of that country, Thai First Secretary for Middle East Affairs Tale Sangchai said. "Peace actually already prevails in the society of different beliefs in the southern region of Thailand but certain small groups are still trying to ignite conflicts in that region," he said when receiving a group of 17 Muslim journalists from Southeast and South Asian countries in Bangkok on Monday. According to Tale, much more information on how Indonesia settled the prolonged conflict in Aceh where conditions of harmony and peace had been restored , should be obtained and learned. "This is certainly an inspiration for us, something we need to learn in our efforts to resolve the conflict in Southern Thailand," he said.

RI's Muslim Youth Not Interested in Politics: Survey
Getting involved in politics apparently is not something that is appealing to young Muslims in Indonesia, a survey shows. The survey, held in November last year and conducted by the Indonesia Survey Institute (LSI) in cooperation with the German culture center Goethe-Institute and the Friedrich Naumann Foundation for Freedom, concluded that Indonesian Muslim youngsters were optimistic about the country's democracy system even though most of them refused to become politicians. Forty-one percent of the 1,496 Muslim respondents, aged between 15 and 25 and taken from all 33 provinces, said that they had little interest in politics, and 29 percent said they did not have any interest at all. When asked what were their goals and dreams were, none answered "to become a politician".

Six American Students Learning E Java Dances
Six students from the University of Colorado and University of Oklahoma (United States) are learning the "kuda lumping" and "reog" dances as part of a cultural exchange program at Soetomo Universty (Unitomo) in Surabaya, East Java. According to the Head of English Literature Study Program of Unitomo`s Faculty of Letters , Putut Handoko, the traditional dance learning activity was an effort to introduce the American students to Indonesian culture, especially East Java culture. "The event named cultural exchange, so they (the six students-red) will also introduce the cultures of their country," Putut said. Later, the U.S. students will promote the culture of East Java in their countries and introduce it to their colleagues and the local community.

Monday, June 13, 2011
News Focus: Indonesia Has Great Investment Opportunities
It is a great time for investors to take advantage of great investment opportunities in Indonesia following its enticing financial climate. Located at the crossroad of the Asian and Australian continents and between the Indian and the Pacific Oceans, Indonesia has many advantages of investment opportunities. Endowed with fertile soil and abundant natural resources, the country is offering investors wide opportunities in many sectors. Therefore, director of Quvat Management in Singapore Thomas T. Lembong has called on the government, business players and investors to optimally utilize the wide investment opportunities in Indonesia. On the sidelines of World Economic Forum on East Asia (WEF-EA), Lembong said China and India have a great interest in investment in Asia, including Indonesia, and this trend should be used as best as possible.

President: RI Economy Getting Stronger
Although there were still some problems that hindered Indonesia`s economic progress, President Susilo Bambang Yudhoyono said it was getting stronger. "I specifically stated that Indonesia`s economy is getting stronger," President Yudhoyono said in his address at the World Economic Forum on East Asia (WEF-EA) here on Sunday. The president said Indonesia wanted to be part of ten countries with the largest economy in the world because its gross domestic product closed to US$1 trillion. In addition, President Yudhoyono said Indonesia had a balanced budget and good fiscal policy. "The ratio of debt to gross domestic product reaches 26 percent, or the lowest in the history," the president said, adding that trading volume tended to increase and foreign investment was high.

Government Expecting WEF-EA Participants to Invest US$10 Billion in RI
The Indonesian government is expecting foreign companies to invest at least 10 billion US dollars in Indonesia as a result of the World Economic Forum-Eat Asia , said Investment Coordinating Board (BKPM) chairman Gita Wirjawan here Monday. "Major foreign companies from Korea, India and Japan are expected to invest up to 10 billion US dollars in Indonesia," said Gita at the World Economic Forum East Asia (WEFEA) being held in Jakarta June 12-13, 2011. Gita said major companies such as Toyota, Daihatsu and Mitsubishi had committed to expand their operations and investment moe capital in Indonesia. "South Korea`s Hankook Tires will also be investing in Indonesia," said Gita.

SBY: Indonesia Will Be in the Top 10
President Susilo Bambang Yudhoyono said Indonesia will be in the top ten countries with the strongest economy within the next decade. "Our GDP is almost Rp1 trillion. We have a balanced budget thanks to wise fiscal measures. The debt ratio to the GDP is 26 percent, the lowest in history," said Yudhoyono at the World Economic Forum on East Asia, at the Shangri-La Hotel in Jakarta yesterday. Trade volume and foreign exchange reserves have hit the highest record and foreign investments have sharply increased. However, he noted that poverty, injustice, infrastructure, corruption and bureaucratic inefficiency were issues the country needed to work on.

Mari Optimistic Non-Oil/Non-Gas Exports to Grow 20 Pct
Trade Minister Mari Elka Pangestu expressed optimism here on Monday that non-oil/non-gas exports will grow more than 20 percent in the second quarter this year. "I think they will grow by more than 20 percent," she said replying to newsmen who asked about her prediction on the country`s non-oil/non-gas exports on the sidelines of the World Economic Forum on East Asia (WEF-EA). She also predicted non-oil/non-gas exports would increase by over 20 percent this year. She said her optimism was based on the non-oil/non-gas export growth rate in the January-April period of 2011 that reached 30 percent. The growth figure in the first four months of this year was higher than the average target for 2011 which was only 12 to 16 percent.

Asia Helps Balance World's Economy: President
President Susilo Bambang Yudhoyono in his speech at the opening ceremony of the World Economic Forum (WEF) on East Asia here on Sunday said Asia can help balance world`s economy. "The world economy cannot afford to rely on strong growth in emerging economies alone. We need healthy growth globally, including in the developed world. One way or another, we all need to make structural adjustments to correct the global imbalances. Asia -- more than any other region -- can help achieve a strong, sustainable and balanced world economy," said the president here on Sunday. However, he reminded that needs to anticipate and address the growing pressures that will come from food, energy and water insecurity. He said of the 7 billion people that now inhabit the planet, 60 percent among them live in Asia. As their economies grow, they would seek and compete for finite natural resources. "A pattern that in previous centuries led to wars, conquest, exploitation and untold suffering," he said.

President Yudhoyono Calls On Asia to Anticipate Food Crisis
President Susilo Bambang Yudhoyono has called on Asian countries to anticipate food, energy, and water crises in order to maintain their position in new world. "Asia should anticipate and take heed of the heightening tension in relation with food, energy, and water insecurity," President Yudhoyono said in his address and World Economic Forum on East Asia (WEF-EA) here on Sunday. The Indonesian head of state on the occasion pointed out that 60 percent of around 7 billion people on planet earth are in the Asian continent. President Yudhoyono said the improvement of their economy would enable them to compete in obtaining and controlling the natural resources.

Boediono: Developing Countries Can Achieve Millennium Development Goals on Their Own
Vice President Boediono said today that, in order to achieve the United Nations Millennium Development Goals, Indonesia and other developing countries should not rely on financial support from other countries because they could achieve the MDG through their own economic expansion. "The role of traditional donors is overrated. What they should do to help developing countries achieve the MDG is to give then more room to develop themselves," Boediono said in a discussion at the World Economic Forum on East Asia in Jakarta. "It should be overall support in terms of investment and trade deals that we can share. Share the added values with us and we can create," Boediono said.

Friday, June 10, 2011
Government Offering 79 Infrastructure Projects to Investors
The Indonesian government is offering 79 infrastructure projects worth US$53.4 billion to investors under a public-private partnership (PPP) scheme. "The projects are categorized as ready to be offered , priority projects and potential," the deputy for means and facilities of the National Development Planning Board, Dedy S Priatna, said at the launching of PPP Project Plan Book 2011 here on Thursday. He said out of the total number of projects 13 had been newly included in the Plan Book. Dedy said 13 projects worth US$27.52 billion are projects that are ready to be offered. Twenty-one others are priority projects worth US$10.38 billion and 45 other projects are worth US$15.5 billion. "Meanwhile there are also 16 cooperation projects whose transactions are still being done and will be done in 2011 worth US$32.33 billion," he said.

BI Keeps Key Rate at 6.75 Percent
The Board of Governors of Bank Indonesia has decided to maintain the BI Rate at 6.75 percent on account of continuing improvements in domestic economic activities. At its meeting here Thursday, the central bank`s Board of Governors said that in the second quarter, domestic economic expansion was estimated to continue and to be even stronger that earlier expected, particularly thanks to improved export performance in line with the high wold trade volume and the global commodity price hike. Investment and household consumption activities were expected to continue to grow significantly, supported by strong optimism and the public`s purchasing power. The economic expansion was also still being supported by growth in the transportation, communication, industry and financial sectors.

Government Fund to Put Excess State Liquidity to Work
Indonesia plans to revive a long-delayed plan to establish an investment pooling fund to put surplus funds of state-controlled companies to effective use, a minister said on Friday. State-owned social security fund Jamsostek will be appointed to manage the funds, said Mustafa Abubakar, the state enterprises minister. Details of the plan will be announced on Tuesday, he said, speaking at the State Enterprises Investment Communication Forum in Jakarta, where leaders of state companies gathered. "The basic scheme is that state enterprises that have excess liquidity that can be readily invested would pool their funds," Mustafa said.

High-Yield Sukuk Rally on Rupiah's Seven-Year High, Easing Inflation
Indonesia's Islamic bonds are rallying, sending yields to a five-month low, as slowing inflation and a strengthening rupiah allow the central bank to refrain from raising borrowing costs. The rate on the 7.36 percent rupiah note maturing in August 2014 dropped 58 basis points since Jan. 5 to 6.33 percent, near the low of 6.3 percent on June 6. The rupiah reached 8,499 per dollar on June 8, the strongest level since March 2004. It rose 5.9 percent in the past six months, the second-best performance among Asia's 10 most-active currencies excluding the yen. Indonesia's sukuk yields 283 basis points, or 2.83 percentage points, more than similar-maturity notes in Malaysia, making the debt attractive, according to Kuala Lumpur-based Asian Islamic Investment Management.

US Strengthens Commitment to Renewable Energy Partnership With RI
The United States government has strengthened its commitment to a renewable energy partnership with Indonesia, according to a US Embassy report. Potential project developers, financial institutions, and government officials met this week to explore development of new and innovative clean energy project, aiming to remove barriers to the development of clean energy in Indonesia. According to the press release received by ANTARA, here Thursday, the clean energy initiative directly supports the U.S.-Indonesia Comprehensive Partnership to achieve energy security. The Comprehensive Partnership is also working to promote prosperity, sustain the environment, strengthen democracy, and enhance understanding and security between Indonesians and Americans.

West Java Launches "Wear Made In Indonesia Shoes" Campaign
West Java launched a "Wear made in Indonesia Shoes" campaign here on Thursday. "As of today all residents of West Java, especially civil servants, must wear shoes made in Indonesia. Checks will be made and so do not try to wear foreign made shoes. If they do they will be asked to conduct a `push up` 200 times," the province`s governor, Ahmad Heryawan, said at the launching. He said the campaign had actually been done for a long time but the launching was officially done only now. The event was marked by the handing over of a pair of shoes from the chief of the Cibaduyut Community of Shoemakers, Guntur, to the governor which the governor immediately wore. Cibaduyut in Bandung, West Java, has long been known as one of the shoe producing centers.

Thursday, June 9, 2011
RI to Bring Up Food Security Issue at WEF Meeting
Indonesia will bring up the issues of food security and energy affairs at the World Economic Forum-East Asia (WEF-EA) meeting in Jakarta on June 12-13, 2011, chief economic minister Hatta Rajasa said. "There will be a session for the subject matter of foods and energy, so that the Agriculture Minister and the Energy and Mineral Resources Minister (ESDM) will speak in the forum," Coordinating Minister for Economic Affairs Hatta Radjasa said here on Wednesday. The food security and the energy matters is a big challenge the countries in the world should face, including in East Asia with their rapid growth, Radjasa said. "We will make use of this meeting to seek solution against this matter," minister Radjasa said.

BI to Maintain Rupiah Stability
Bank Indonesia (BI/the central bank) has not yet decided to halt the appreciation of the rupiah against the greenback but will continue to maintain the local currency`s stability, a BI deputy governor said. "What it all needs is not about its (high or low) exchange rate but its stability. We consider that it will be stable if it does not disturb both internal and external equilibrium," BI Deputy Governor Budi Mulya said here on Thursday. According to him, BI will continue to consider the factors that can influence the rupiah currency appreciation, including trends in other developing countries. "BI will look at the factors that affect the value of the rupiah, the currency strengthening trend, not only in Indonesia but also in emerging countries. The strengthening trend is still rolling. Global liquidity is trying to return from countries which have strong economic fundamentals," he said.

Sumatra Beans in High Demand as Robusta Trades at Premium
Robusta coffee from top producer Vietnam was traded at premiums for the first time since at least May 2010, while Indonesian roasters snapped up any beans on offer as supply worries lingered, dealers said on Wednesday. Vietnam's robusta grade beans changed hands at premiums of between $20 and $60 to London's September contract on thinning stocks ahead of the next harvest and after strong exports earlier this year. "We've been buying Vietnamese coffee at London levels or at premiums of $20. There's not much stock in the hands of farmers," said a dealer in Singapore who trades Vietnamese and Indonesian coffee. "There will be some tightness in Vietnam from now until the new crop arrives in October."

BI Holding Fire, but Rate Hike Expected in Q3
While Bank Indonesia made the expected move to keep its key interest rate at 6.75 percent, analysts said they still expected it to raise its rate in the third quarter. In the past few months, Bank Indonesia has sent signals of a possible rate hike in anticipation of price pressures. However, it held off from raising borrowing costs since its first rate increase in more than two years in February, a rise of 25 basis points. "BI does not even talk hawkish any more, much less act the part. A chili-flavored base effect would likely dampen headline inflation in the coming months and form a key risk to our call for July rate hike," said Wellian Wiranto, an economist at HSBC in Singapore.

Indonesia Still Planning Global Sukuk as It Waits for Approval
Indonesia is still planning a sale of dollar-denominated Islamic bonds in the second half even though it has yet to get approval for state-owned land and office buildings to be used to back the debt, the finance ministry said. The ministry is seeking parliamentary approval to allow Rp 30 trillion ($3.5 billion) of land and buildings to be used for the sukuk offerings, Dahlan Siamat, director of Islamic finance at the ministry, said in an interview today. It has "run out" of approved buildings and land, he said last month. The finance ministry is also waiting for a ministerial decree to enable it to use new projects, such as roads, railways and buildings to back Shariah-compliant bonds.

News Focus: Foreign Tourists Start Arriving For Lake Sentani Festival
Foreign tourists continue to arrive in Papua`s provincial capital of Jayapura for the Lake Sentani Festival that will take place in the Kalkhote resort on June 19-23, 2011. It was reported from Jayapura on Thursday, many of the foreign visitors to the festival were over the past few days seen strolling in the city`s streets. The number of foreign tourists arrivals in Jayapura for the festival is expected to continue to increase until the event kicks off on Sunday, June 19, 2011. Among the foreign visitors to the festival were a couple, Gatsonides and his wife, who arrived in Jayapura from the Netherlands three days ago. "We heard about Lake Sentani cultural festival and immediately got interested in attending it to know what it would be really like," Gatsonides said in Jayapura on Thursday.

USAID Assists Five Cities in South Sulawesi
The United States Agency for International Development (USAID) will assist five cities/regencies in South Sulawesi in improving public services. The five regions are: Makassar, Bulukumba Regency, Barru Regency, Luwu Regency, and North Luwu Regency. "We are going to focus on public services works in three sectors: education, health, and improving the business climate," said Jana Hertz, the USAID Deputy Chief of Party, during the MoU signing between the USAID, the South Sulawesi government, and the five cities/regencies at the South Sulawesi governor's office yesterday. According to Jana, the assistance for the three sectors will be conducted during the 2011-2014 fiscal year with a US$24 million grant prepared by USAID. But, according to the MoU, the central government and the local governments will also contribute funds at a total of US$5 million.

Wednesday, June 8, 2011
Indonesian Competitiveness Improving Significantly, New Report Says
Indonesia's global competitiveness has increased significantly since 2005 but work needs to be done to improve the country's public health, information technology, infrastructure and fight against corruption, a report revealed. According to the World Economic Forum Report on Global Competitiveness Index launched on Wednesday, Indonesia ranked 44th among 139 countries, moving up 10 notches since 2005, the strongest progress among G20 countries. "From an economic standpoint, Indonesia has done remarkably well in the past decade and has proven very resilient during the global economic crisis as reflected in the country's competitiveness performance," said Thierry Geiger, economist at the WEF and lead author of the report, on Wednesday. The report stated, "Indonesia now compares favorably with the BRICS [Brazil, Russia, India, China and South Africa], with the notable exception of China (27th). Indonesia precedes India (51st), South Africa (54th), Brazil (59th), Russia (63rd) and sits midway with ASEAN, well behind Singapore (3rd) and Malaysia (26th), far ahead of the Philippines (85th) and Cambodia (109th), and relatively close with Thailand (38th) and Vietnam (59th)."

Credits in June Grew 23.5 Pct
Bank Indonesia (BI/the central bank) Deputy Governor Muliaman D Hadad said that banking credits had up to early in June grown by 23.5 percent from that in the same period in the previous year`s growth. "Demand for banking credits will remain strong until the end of the week. This is indicated in the year-to-date credit growth which reached Rp123 trillion, or 7 percent. It reached Rp358 trillion or 23.5 percent year on year basis," he said here on Wednesday. He said that the credit growth was still dominated by investment credits which were recorded at 10 percent year-to-date, followed by consumption credits which accounted for 7.5 percent. Muliaman said that even though there were banks which still performed below the banking business target (RBB), yet demand for credits were predicted to remain strong until the end of the year.

A Different Kind of Uprising
Throughout history, it has often been the young who have initiated the biggest changes. In January this year, the Egyptian revolution was sparked by the country's youth, who were fed up with the 30-year dictatorship of Hosni Mubarak. Something similar happened in Indonesia in 1998 when Suharto, president of the country for 32 years, was forced to step down after massive protests organized by students. Indonesia's young people are, once again, making their voices heard. Over the past few years, more and more of them have become involved in these social movements. But instead of calling for an overthrow of the government, they are hoping to revolutionize people's attitudes toward a wide variety of social issues such as corruption, environmental protection and education.

RI's Fisheries Trade With APEC Members Reaches 90 Pct
Indonesia`s trade in fisheries with members of the Asia Pacific Economic Cooperation (APEC) reaches 90 percent, a fisheries and marine resources ministry official said. "Almost 90 percent of our trade in fisheries is done with APEC members," the director for foreign marketing of the ministry, Saut Hutagalung, said in a statement received here on Tuesday. In view of that he said the role of APEC was very important with regard to increasing exports and capacity building in the domestic fisheries and marine resource sector. According to the ministry data, US$2.6 billion out of a total of US$2.89 billion worth of total fisheries exports in 2010 came from trade with members of APEC. Hutagalung expressed the hope the export value could increase up to 15 percent this year.

News Focus: RI Intensifying Efforts to Evacuate Citizens From Yemen
With the situation in strife-torn Yemen worsening by the day, the Indonesian government is intensifying efforts to evacuate its citizens from the Middle Eastern country. Yemen has been wracked by violent clashes since early February as demonstrators want President Abdullah Saleh to quit. At least 114 home and local staffers at the Indonesian embassy in Sanaa, Yaman, together with members of their families, have been evacuated to the embassy building. A number of Indonesians, mostly students, have earlier been given temporary accommodation at the embassy pending their evacuation process. The embassy building is considered a safer place although last Friday (June 3) there was an exchange of canon fire between government forces and armed opposition groups who had taken up positions only 500 meters from the embassy.

RI Target of Global Businesses to Find Partners: Hatta
Coordinating Minister for Economic Affairs Hatta Rajasa said the holding of the World Economic Forum on East Asia (WEF-EA) in Indonesia indicated the country had become the target of global business makers to find business partners. "They see Indonesia as a good country and place to find business partners," Hatta Rajasa said here on Wednesday. He said many global-scale company leaders would gather in the WEF-EA in Jakarta on June 12- 13, 2011. "They will express their views about global conditions, investment, trade, food security and others," he said. He said East Asia is playing its role at the global level today. Business leaders were interested in the topics and would be beneficial to business leaders in Indonesia.

SWB to Accelerate Regional Economic Development
Sail Wakatobi-Belitong 2011 (SWB) that will peak at the beaches of Sombu, Wakatobi in Southeast Sulawesi and Tanjung Kelayang in Bangka Belitung (Babel) is expected to accelerate regional economic development, a senior minister said. "The event has many objectives but the most important one is to accelerate the pace of development in the region," Chief Welfare Minister Agung Laksono said during the launch of SWB 2011 at the Ministry of Maritime Affairs and Fisheries (KKP), here on Tuesday. He said that the event was expected to boost regional economy by coupling various economic programs with other programs. It is also intended to advance the country`s tourism in the regional, national and international levels.

TNI's Engineering Task Force in Congo Receives UN Medal
The engineering task force of the Indonesian military contingent Konga XX-H in Congo has received a UN medal for its success in performing UN peacekeeping mission in Congo (Monusco) for six months. Monusco Commander Lt Gen Chender Prakhas conferred the UN medal on commander of the task force Lt Col Widiyanto at Bumi Cenderawasih Camp at Dungu in Congo on Monday, spokesman for the Indonesian military contingent 1st Lt Imam Mahmud said in an emailed statement to ANTARA on Tuesday. Lt Gen Prakhas said the Indonesian military contingent made remarkable achievement during their six-month assignment in Congo. Citing an example, he said the Indonesian contingent built a 147-km long road connecting Dungu to Faradje. "Not only did the Indonesian contingent build a road and bridges between Dungu and Faradje, but also they built a bridge of heart between the people of Congo and UN troops, Monusco in particular," he said.

Tuesday, June 7, 2011
Government Wants 12.3-13.5 Pct Increase in Non-Oil/Non-Gas Exports
The government has set itself the target of increasing its non-oil/non-gas exports by 12.3 - 13.5 percent in 2012, Trade Minister Mari Elka Pangestu said. "In order to achieve qualitative growth of our non-oil/non-gas exports, we need to increase our export promotion efforts, improve the trading climate, bolster our export competitive edge and increase our international trade diplomatic capability," the trade minister said here on Monday. The growth target set for non-oil/non-gas exports next year is higher than the target set for the same commodities this year which is only between 11 per cent and 12 percent. Data at the Central Bureau of Statistics (BPS) showed that in the January 2011 period, Indonesia`s non-oil/non-gas exports had reached 50.03 billion US dollars, or an increase of 29.34 percent compared with that in the same period a year earlier.

Investment in Construction Materials Industries Up 3 Pct
Investment in construction materials or non-metal mineral industries grew three percent last year to Rp1.58 trillion from the previous year, industry minister MS Hidayat said here on Tuesday. The industries are projected to continue to grow in line with the increasing property and construction development, he said. "The population is very big and the good development prospects especially in property and construction sectors will boost construction materials market development," he said at the opening of ceramic, glass and construction products at his ministry. He projected construction materials industry would grow in line with the national economic growth to boost growth in the property sector. "The property market is expected to still grow in 2011 in line with the economic growth which is projected to reach 6.4 percent," he said.

Trumps Target Indonesia as Potential Property Gold Mine
The Trump Organization, a Manhattan-based property conglomerate, is scouting opportunities to tap into the Indonesian market, Donald Trump Jr. said on Monday. "I found that Indonesia was completely different from what I imagined it would be," Trump said, adding that he had seen some impressive property projects since he arrived on Saturday and would love to enter the country's market. He said he had met with a number of business groups, including Lippo Group - with which the Jakarta Globe is affiliated - and Bakrie Group, which have strong property businesses. Trump said he was seeking partners that had a "similar vision and understanding" with the Trump Organization. However, he said it was "too early to talk about numbers" or how the partnerships would be built.

Goldman Sachs Keen on Indonesia, Malaysia
Goldman Sachs has boosted its assessment of Indonesian and Malaysian shares, citing growing domestic demand and prospects for medium-term economic improvements. "We believe that the investment case for this market is favorable," the world's largest securities firm by revenue said on Tuesday in its Asia-Pacific portfolio strategy. It raised Indonesian and Malaysian shares to "overweight" while lowering its rating on Thailand to "underweight", citing uncertainty amid impending elections and a lack of "top-down direction." "As global growth momentum slows, we believe Asean will come back into focus because of domestic demand," it said. "However, performance within Asean differs more than investors think. Since earnings are largely mid-cycle and valuations are generally fair, we believe economic and earnings factors will drive performance within Asean."

Army Chief: RI Takes Active Part in UN Peacekeeping Missions
Army Chief of Staff Gen George Toisutta said Indonesia has always been taking an active part in UN peacekeeping missions in accordance with the mandate of its constitution. He made the statement at a meeting with his Italian counterpart Gen Giuseppe Valotto at the Italian Army Headquarters in Rome on Monday, Musurifun Lajawa, minister counselor for educational and socio-cultural affairs at the Indonesian Embassy in Rome, said in an emailed statement to an Antara correspondent in London on Tuesday. At the meeting, Toisutta who is paying a working visit in Italy at the invitation of the Italian Army chief of staff said the Indonesian military (TNI) contingent which is now taking part in the United Nations Interim Force in Lebanon (UNIFIL) is the fourth of its kind. The participation of TNI troops in UNIFIL has given a lot of useful experience and advantage to them, he said.

RI, China Hold Joint Anti-Terrorism Exercise
Indonesian and Chinese special military forces began a joint anti-terrorism exercise here on Monday. "The first military exercise so far will not only give a strategic effect on the region but internationally," China`s Jinan Military Command chief of staff Lt. Gen. Zhao Zonggi said. Speaking at the opening of the joint exercise code-named "Sharp Knife 2011" he said the exercise was a concrete step in the strategic partnership that had been agreed by the two countries especially in the field of defense. "The exercise is the follow up of the agreement between the two heads of state," he said. He said he hoped the joint exercise, which is the first held by the Indonesian and Chinese militaries especially in anti-terrorism, could become a strategic milestone for the two countries` better and increasing relations and cooperation in the future "especially in dealing with terrorism that has become an international threat."

RI Proposes Joint Action in Dealing With Pirates
Indonesia will call on the member countries of the International Maritime Organization (IMO) to jointly deal with pirates because they had caused a loss of 8-12 billion US dollars to international shipping. "Seamen had become increasingly worried about the pirates in the Somali waters, and therefore IMO member countries need to be persuaded to take joint action," Transportation Minister Freddy Numberi said when opening a National Conference on the Implementation of BMP3 (Best Management Practices to Deter Piracy off the Coast of Somalia and the Arabian Sea Area) in Jakarta on Monday. BMP3 was aimed at assisting ships in avoiding, preventing or slowing down the attacks of pirates off the Somali coast, including the Bay of Aden and the Arabian region. He said even the UN Security Council has issued a mandate to all IMO member countries to fight against the pirates.

Monday, June 6, 2011
Indonesia Talks About Moratorium Policy at F-11 Workshop
Indonesia`s delegation talked about the country`s policy on deforestation moratorium when speaking in the Forest Eleven (F-11) workshop being held in West Lombok, West Nusa Tenggara (NTB) Province, June 6-10, 2011. "We tell the F-11 member countries about the moratorium policy to protect our tropical forests," DR Eng Tachrir Fathoni, head of the forestry ministry`s research and development unit, said here Monday on the sidelines of the the . On May 20, 2011, President Sosilo Bambang Yudhoyono signed a presidential instruction no. 10/2011 on the Moratorium on New Logging Concession in Primary Forests and Peat Lands and Improvement of Forest and Peat Management. The head of state also signed a presidential regulation no. 28/2011 on the Utilization of Underground Protected Forest areas.

News Focus: World Environment Day Focuses On Forests
The government organized an Indonesian Environment Week expo in Jakarta June 1-5 to mark World Environment Day (WED) 2011 which was observed globally on June 5. The Indonesian Environment Week 2011 had 180 stands displaying among other things recycled goods and environmentally friendly products. In line with this year`s theme of WED: "Nature at Your Service", Indonesia, as the world`s third largest forested country, must pay serious attention to the conditions of its forests, Coordinating Minister for People`s Welfare Agung Laksono said when officially opened the Indonesian Environment Week here on June 1, at the accompany of Environment Minister Gusti Muhammad Hatta. "Environmental damages due to illegal logging activities, forest fires, and land conversion have worsened environmental conditions and added to the list of disasters in the country," he said. The government has so far implemented tree planting programs such as the One Man One Tree and the Women Plan Tree that have contributed to the planting of a total of 1.3 billion trees.

Government to Work on a Credit Scheme for Low-Cost Housing
The government is setting up a Liquidity Housing Financing scheme to help borrowers buy low-cost homes. The funding of this low-cost houses in this program will be more affordable compared to the previous scheme which ran out in October last year. There are plans to build 1 million units of low-cost houses. Public Housing Minister Suharso Monoarfa said that the construction of low-cost housing was intended for people who living in disadvantaged areas, the urban poor and fishing village communities. At least 183 regencies have been classified as disadvantaged areas. One of the deciding factors of underdevelopment is the housing conditions in that area. "The distribution of the funds for 350,000 units will be done through the National Program for Community Empowerment. The rest will be facilitated by the government," he added.

Rupiah Rises to Seven-Year High on Easing European Debt Concern
Indonesia's rupiah rose to a seven- year high on optimism European Union officials will prepare a new aid plan for Greece, quelling fears the region's debt crisis will deepen and damping demand for dollars. The currency rose for a second day as EU and International Monetary Fund officials agreed to pay the fifth installment of a 110 billion-euro ($161 billion) bailout agreed last year. Jean-Claude Juncker, who leads the group of euro-area finance ministers, and Olli Rehn, EU Economic and Monetary Commissioner, are scheduled to speak in France today. The rupiah advanced 0.2 percent to 8,508 per dollar as of 9:22 a.m. in Jakarta, according to data compiled by Bloomberg. That's the strongest level since March 2004. "There are indications that Greece will get help from the European Union and that may end the debt crisis," said Lindawati Susanto, head of treasury at PT Resona Perdania in Jakarta. "Risk sentiment is back on. Locally, inflation is manageable and the central bank is expected to hold its interest rate this week."

U.S. Helps Indonesian Courts Improve Transparency
The United States provides training on court information for Indonesian judicial staff last month, the US Embassy said in its website here on Monday. In cooperation with the Supreme Court of Indonesia, the USAID Changes for Justice Project (C4J) conducted training on Transparency of Court Information at the Bandung District Court from May 23-26. Judicial and non-judicial staff from the Bandung, Samarinda, Palembang, and Surabaya District Courts were present, and received training on their respective roles in implementing Law no. 14 of 2008 regarding Transparency of Public Information, and the revised Supreme Court Decree No. 1-144 regarding transparency of information at courts. Increasing transparency in the judicial sector is a major component of both the Indonesia Supreme Court`s 2010 Blueprint for Reform and USAID Indonesia`s justice sector reform support.

Indonesia Calls for Sustainable Use of APEC's Marine Resources
Indonesia has called on APEC member countries to make use of their marine resources in a sustainable manner while also trying to preserve the environment. The call was made by Endhay Kusnendar, head of the research and development division of Indonesia`s Marine and Fisheries Ministry at the opening session of the 22nd APEC Fisheries Working Group Meeting as well as the 24th APEC`s Marine Resource Conservation Working Group Meeting in Bali on Monday. Endhay said APEC had now become one of the prominent economic powers in the world with its member economies accounting for 57% of the global GDP and more than 40% of the world trade volume. With a total population of more than 2.6 billion, he said, APEC itself had become a huge potential market. The consumption of global fish products in APEC economies had reached 70%, which comes from both captured and aquaculture production.

Late Trading Flurry Helps JCI Finish Up on the Week
The Jakarta Composite Index edged higher for a third successive day on Friday, boosted by the financial sector as continued easing inflation aided confidence in the banking industry. "Monthly inflation in May was 0.12 percent, while the historical inflation for May was 0.3 percent in the last four years," said Janson Nasrial, an analyst at AmCapital. "This is definitely a positive catalyst for the banking sector." The JCI gained 6.26 points, or 0.16 percent, to close at Rp 3,844.02. More than 12.56 billion shares worth Rp 4.56 trillion ($533.5 million) changed hands, with decliners outnumbering gainers 132 to 80. The index advanced 0.3 percent for the week. Trading volume was unusually heavy despite Friday being declared a national day of leave by the central government.

Sufis From Around the World to Gather in Jakarta
Some of the world's most prominent Sufis will gather in Indonesia next month to discuss the issue of Islam as a religion that condemns violence. "There will be a meeting of 'tassawuff's tariqas,' also known as world Sufis, on July 16," said Said Aqil Siradi, the chairman of Nadlatul Ulama (NU), on Monday. "There will be 43 local tariqas and 22 international tariqas." The meeting will be held one day before the NU's 85th anniversary celebration in Senayan. Sufis representing Egypt, Syria, the United States, Japan, Morocco, Turkey and various Asian nations will be in attendance. "It is important to note that Indonesian Islam is an Islam that stresses 'Akhlakul Karimah' and wisdom. It condemns any form of violence," Said added.

Currency Law to Prevent Expats From Dealing in Foreign Coin
Senior lawmakers say expatriates working in Indonesia and foreign firms will be the most affected by the currency law that was approved by the House of Representatives last week. According to the legislation, which will come into effect next May, all transactions in the country must be conducted in rupiah. "That includes payments to expatriates who work here," Achsanul Qosasi, a Democratic Party lawmaker and vice chairman of House Commission XI, which oversees financial affairs, said on Sunday. "The foreigners are making money here, so it's only natural that they use our money." If transactions are carried out in currencies other than rupiah, the law says, the penalty would be six months to a year in jail and a fine of Rp 5 million to Rp 200 million ($585 to $23,000).