Tuesday, May 31, 2011
RI's 2012 Economic Growth Projected Highest in ASEAN
Indonesia`s economic growth in 2012 is predicted to be higher than those of other ASEAN countries, Finance Minister Agus Martowardojo said here on Tuesday. "The government will prepare a expansive fiscal policy in 2012 to support the economic growth," Agus said when delivering the government`s response to the outlooks of House of Representatives factions in the House plenary meeting. According to the finance minister, the government would make every effort to reach the economic growth of around 6.5 percent to 6.9 percent in 2012, although there would be a big enough challenge. The finance minister said the rate of Indonesian economic growth would higher than Malaysia 5.2 percent, Thailand 4.5 percent, the Philippines 5.0 percent, and Singapore 4.4 percent.

Maritime Ministry Earmarks Rp 212 Billion For Fishermen
The Maritime Affairs and Fisheries has set aside Rp 212 billion to improve the welfare of fishermen through several empowerment programs, a minister said. "On national scale we have prepared a fund of Rp212 billion for fishermen welfare improvement programs," Maritime Affairs and Fisheries Minister Fadel Muhammad said here on Monday. The minister said that the Rp212 billion funds accounted for 33 percent of the total budget for the maritime affairs and fisheries ministry. He said that the improvement programs included housing for fishermen, villagers` fish pond empowerment, fishermen`s groups improvement and procurement of boats for fishermen through regional governments.

RI Students And Professionals in US Discuss 21th Century Vision
Nearly 100 Indonesian students and professionals in the United States are by the end of this week getting together in a forum in Washington DC for sharing ideas and views on challenges Indonesia has been facing in the 21st century. The forum themed "Generation 21: Indonesian Ideas Forum USA 2011" was held by the Indonesian embassy in Washington with the support of all Indonesian representative offices in the US, namely in New York, San Francisco, Chicago, Los Angeles and Houston. The forum also has the support of the Investment Coordinating Agency (BKPM)and Modernisator -- an Indonesian non-profit organization developing a development vision -- assembling 97 young Indonesian students and professionals of various universities in the United States. They were involved in three days of discussions under the guidance of Indonesian prominent figures including the Indonesian ambassador to the US Dino Patti Djalal; former finance minister, now World Bank executive director Sri Mulyani Indrawati; and businessman Peter Gontha -- who in the forum shared their experience in global branding Indonesia by way of the international music festival Java Jazz.

Indonesia Maintains Good Human Rights Record
DPR speaker Marzuki Alie said that human rights reinforcement in Indonesia had improved. Indonesia has even been chosen as one of the members in the UN's Human Rights Council. "That means the world appreciates us. The conflict that happened some time ago resulted from provincial dynamics, but it remained in the Indonesian Republic context and was settled peacefully," he said when receiving Swedish parliamentary chief, Per Westerberg, at the DPR Building. This year, he continued, Indonesia would be trusted to head ASEAN. Therefore, the momentum must be used to build unity in all sectors, he said. "The good opportunity should also be used to increase trade among ASEAN countries and resolve issues with other ASEAN countries through dialogue and discussions facilitated by Indonesia," he added. According to Marzuki, the ASEAN parliament's role can now synergize with the ASEAN Parliamentary Assembly forum. "Every time there is an ASEAN summit, we always convey the resolution decided by the APA so that it can be implemented by ASEAN countries," he said.

JCI Up on Coal Price, Inflation Outlook
The Jakarta Composite Index resumed its climb on Tuesday, thanks to interest in commodity stocks - coal in particular - and on expectations of a low inflation reading today. "Increasing coal price boosted commodity shares," said Suryadi Candra Kasih, from AM Capital Indonesia. The JCI rose 10.83 points, or 0.28 percent, to 3836.97. More than 9.12 billion shares valued at Rp 7.29 trillion ($852.9 million) were traded. Gainers led decliners 128 to 99. Driving gains in coal stocks was news this week that India would import five millions more tons from Indonesia, raising total exports to India to 90 million tons by 2013. Coal prices are hovering at $120 to $130 per ton. Miner Adaro Energy's shares rose by 3.2 percent to Rp 2,450, while rival Borneo Lumbung Energy climbed 1.33 percent to Rp 1,520. Energy consultancy Wood Mackenzie said on Tuesday that Indonesia would lead world growth in power station coal exports over the next decade.

Government Proposes Power Subsidy of Rp 58 Tln for 2012
The government has proposed electricity subsidy of Rp58.72 trillion for 2012 to the House of Representatives, a 44.28 percent increase compared to the assumed electricity subsidy of Rp40.7 trillion under the 2011 state budget. The proposal included state electricity company PT Perusahaan Listrik Negara`s assumed business margin of 8 percent, Director General of Electricity at the Energy and Mineral Resources Ministry Jarman said at a working meeting with the House of Representatives Commission VII here on Tuesday. "The margin is needed to enable PLN to increase its investment and improve business efficiency," he said. PLN`s investment would go to priority projects particularly to increase the country`s electrification ratio, he said.

Rupiah Strengthens on Easing Greece Concern, Slower Inflation
The rupiah advanced for a fourth day on speculation European officials will approve additional assistance for Greece, spurring demand for emerging-market assets. The currency was poised for a fourth monthly gain as overseas investors boosted holdings of Indonesian government debt by 2 percent to Rp 225.9 trillion ($26.5 billion) this month through May 26, official data show. European Union leaders will decide on a new aid package for Greece by the end of June, Luxembourg Prime Minister Jean-Claude Juncker said yesterday. Economists predict inflation will ease for a fourth consecutive month in May ahead of official data due tomorrow. "Markets are positive as Europe is close to finding a solution for Greece," said Mika Martumpal, a currency analyst at PT Bank Commonwealth in Jakarta.

Thursday, May 26, 2011
RI to Accelerate, Expand Economic Development
Indonesia intends to accelerate and expand its economic development and to that end is soon to adopt a master plan, a senior minister said. President Susilo Bambang Yudhoyono would on Friday launch the acceleration master plan for it, chief economic minister Hatta Rajasa said here on Wednesday. The Master Plan for the Acceleration and Expansion of Indonesian Economic Development (MP3EI) had been discussed since 2010 and was aimed at spreading development across the country`s regions, he said. "The discussion involved all stakeholders including small and big businesses as well as regional governments," Hatta said to newsmen at the vice president`s office after attending a meeting on poverty eradication led by Vice President Boediono.

Indonesia Best Country to Start Business: BBC
Indonesia has been listed as the top country for entrepreneurs to start a business, ahead of the United States, Canada, India and Australia, according to a survey commissioned by the BBC. The results are based on 24,000 interviews conducted by international survey firm Globescan across 24 different countries - where respondents were asked whether innovation and entrepreneurial was highly valued in their country and how easy it was to start a business. According to the BBC, developed countries fared well in the survey with the exception of Italy, which appeared alongside Colombia, Egypt Turkey and Russia as being the least conducive environments for starting a business. Along with Indonesia, developing countries India, China and Nigeria were also seen as favorable places for entrepreneurs.

Foreign Investment In RI to Increase: Analyst
Money market analyst Farial Anwar has predicted that foreign investment in Indonesia would increase thanks to various factors that would encourage foreign investors to make their investment. China's policy which is tightening its liquidity to slow down its fast economic growth is one of the factors that would encourage foreign investors to choose Indonesia`s domestic market, he said here on Wednesday. Farial Anwar, who is also director of the Currency Management Board, said that Indonesia also could take advantage of the slow economic growth in the United States. Foreign investors are also still unwilling to enter the United States market which still adopts low interest policy and the European markets which are now being plagued by debt crises.

Bank Credits Grow 23.8 Pct
Credits provided by the banking sector up to April 2011 increased to Rp350.8 trillion or about 23.8 percent while third party funds rose to Rp364.9 trillion or about 18 percent, Bank Indonesia (BI) said. BI Deputy Governor Muliaman D Hadad told a hearing of the House of Representatives (DPR)`s Commission XI on financial affairs here on Wednesday that with that performance, banks` loan-to-deposit ratio (LDR) increased from 75.15 percent in December 2010 to 77.98 percent in April 2011. Apart from that the quality of banking credits was also relatively under control with gross and net non-performing loan ratios respectively recorded at 2.8 percent and 0.5 percent. It was relatively stable compared with those in the previous month. This also improved the operational cost-to-income ratio from 80 percent in December 2010 to 77.8 percent in March 2011.

RI, US to Establish Cooperation in New Entrepreneurship
Indonesia and the United States have agreed to establish cooperation in new entrepreneurship in Indonesia, according to a minister. Cooperatives and Small and Medium Scale Entrepreneurs (SMEs) Minister Sjarifuddin Hasan said here Wednesday he had held a meeting with US Under Secretary of Commerce and International Trade Francisco Sancez on the sidelines of APEC Ministerial Meeting on SMEs in Big Sky, Montana, the United States, on May 20-21, 2011, to discuss the possible cooperation. "We have agreed to develop entrepreneurship for SMEs in Indonesia," Minister Sjarifuddin said. The US government will facilitate the program through two famous institutions for SME development, namely Koftman Foundation for Entrepreneurship and Boston College for Entrepreneurship.

It's Party Time for Dayaks
Thousands of people in traditional Dayak costumes marched down the streets of Pontianak, while a number of youths, wielding daggers and blowpipes, danced on top of vehicles with graceful women wearing peacock feather headgears. The Dayak ethnic community living in the capital of West Kalimantan held an annual festival called the Dayak Gawai Week from May 18 to 24. The 26th festival took place at the traditional house, Rumah Betang or Rumah Pajang, on Jl. Soetoyo, Pontianak. For Dayaks living in the inner region, gawai represents an expression of gratitude to Jubata or the Almighty God for bumper harvests they have reaped, whereas their urban counterparts see the festival as a celebration for God blessing them with ample fortune throughout the year. The Dayak Gawai Week was this year marked with a cultural parade of Dayaks and other ethnic groups on the main roads of the city, which started from Jl. Soetoyo in front of Rumah Betang, and finished at the same building.

RI Hopes To Be High Income Country in 2025
The government expects Indonesia to become one of high income countries in 2025 by developing its potentials particularly in the economic sector. In its written statement issued on Wednesday, the Coordinating Ministry of Economic Affairs said Indonesia is listed as the world`s 17th biggest economy, with per capita income reaching around US$3,000 in 2010. If everything goes on as planned, Indonesia will belong to a group of high income countries in 2025, the statement said. Indonesia is rich in a variety of resources which can be turned into the main engine of the national economy, it said. The statement said Indonesia is in the process of transforming itself from factor-driven economy to efficiency-driven economy.

Sail Wakatobi To Be Launched Early June
Sail Wakatobi Belitong (SWB) will be officially launched in Jakarta on June 7, 2011, Marine Affairs and Fishery Minister Fadel Muhammad said. "The SWB 2011 will be launched on June 7, 2011 in Jakarta to mark the beginning of the event," the minister said after chairing a meeting on the preparations for the implementation of SWB 2011 here Wednesday. The SWB 2011 will be organized in Wakatobi, Southeast Sulawesi Province, and Belitung, Bangka Belitung (Babel) Province. The marine event has four objectives, according to the minister. The first objective is to make harmonization in benefiting the regions` potential for the welfare of the people; The second is to promote Wakatobi and Belitung as domestic and international tourist destinations; the third is to create the best sailing passange; and the fourth is to make the marine and fishery potential in the two regions as a living source for the local people and the source of sustainable development in the regions.

Google Earth Demonstrates How Technology Benefits RI's Civil Society, Government
Michael T. Jones, Google`s Chief Technology Advocate, participated in a panel discussion to more than one hundred guests at @america Monday ( May 23) on the topic, "Using Google Technology to Understand Our World." Mujahid Shafiq M.A. Pontoh, head of Indonesia Berkebun, and Wahyu Widodo Pandoe, a Marine Survey Program Manager from Indonesia`s Agency for the Assessment and Application of Technology, also participated in the discussion, which highlighted how governments, civil society, and individuals can use Google Earth technology, the US embassy said in a press statement here Thursday. During the discussion, Jones demonstrated different uses for Google Earth, navigating the program from the streets of San Francisco to the surface of the moon and ending in the ocean depths off Indonesia. Although only 22 percent of the world`s population has access to computers, Michael Jones provided attendees startling statistics on Internet use.

Wednesday, May 25, 2011
How to Tell the World That Indonesia Is Ready, Willing and Open for Business
When prominent government officials say in London that Indonesia needs to send out a strong promotional message reminding the world that the country is open and ready for investment, you know there is a case to be made back in Jakarta. There may be plausible reasons why such a body hasn't yet come into fruition. The most obvious is the absence of a grand government view, leading to silo mentality among the ministries and the normal turf tussle between competing factions - generating deep distrust within government. Yet observing this impasse compels one to draw a simple conclusion. If Indonesia is, as many believe, on course to become the emerging markets star of 2011 then surely this is a defining moment in history for Brand Indonesia to come of age. Indonesia would do well to take a leaf from the Indian Brand Equity Foundation's book, a private-public partnership between the Indian government and the private sector.

RI Investment Up 27 Pct in First Quarter This Year
Investment in Indonesia has increased 27 pct in the first quarter of 2011 compared to last year's. "The increase was triggered by the big interest of local and foreign investors in Indonesia," head of the Capital Investment Coordinating Agency (BKPM) Gita Wirjawan said here Tuesday. He said up to the first quarter this year French investment reached 5.2 billion US dollars. "They allocated the money in the mining sector," he said. In the meantime, he added, South Korea`s Po Hang Steel Company was ready to invest 6 billion US dollars in the mining sector and steel production. On the form of business in the mining sector along with South Korean capital, he said they established cooperation with PT Krakatau Steel.

SBY Calls for Emerging Nations to Have Greater Role in UN
President Susilo Bambang Yudhoyono on Wednesday said the composition of the United Nations leadership should be reshaped to give more power to emerging nations. Speaking during a Non-Aligned Movement conference in Bali, Yudhoyono in his opening address spoke about the need for international organizations to "adapt to the new global political and economic landscapes." Yudhoyono also mentioned the importance of reforming global governance. "This means overhauling the UN Security Council, so that it reflects the reality of the world today," he said. "A world where emerging powers have so much more to contribute to global peace and security," he said. He then added, "This also entails the revitalization of the General Assembly, where the NAM's numerical superiority can be put to work, in the cause of peace and development."

Government Raises Rp 5.45 Tln From Auction Of State Binds
The government raised Rp5.45 trillion in funds from the auction of four series of state bonds on Tuesday. During the auction the government received total bids of Rp14.7 trillion, Director General of Debt Management at the Finance Ministry Rahmat Waluyanto said in a statement. The bonds put to the auction were series SPN20120504, FR0055, FR0053 and FR0057. No bidder was declared a winner for the bonds series SPN20120504 which will mature on May 4, 2012. He said the Rp5.45 trillion consisted of Rp0.9 trillion from bonds series FR0055, Rp1.45 trillion from the bonds series FR0053 and Rp3.1 trillion from the bonds series FR0057.

RI to Encourage NAM Member Countries to Support Palestine's Independence
In the ongoing Non-Aligned Movement (NAM) meeting in Bali, Indonesia will encourage other NAM member countries to support the independence of Palestine, an ambassador said. "In this meeting, Indonesia will encourage the NAM member states to support the independence of Palestine," Indonesian Permanent Representative to the United Nations Ambassador Hassan Kleib said here Tuesday. This September Palestine will go to the UN General Assembly for recognition of its independence, he said. "However, the problem is that there are still 79 countries which have not recognized Palestine. From the 79 countries, 29 are NAM members. This is the significant of the meeting and at the same time the central role of Indonesia is at stake," he said. Indonesia supported the 1967 border line of Palestine and Israel.

RI Establishes Parks to Mark Biodiversity Day
Environmental Affairs Minister Gusti Muhammad Hatta has inaugurated several biodiversity parks to mark International Biological Diversity Day (IDB) 2011. The establishment of biodiversity parks was aimed at preserving biodiversity in regions which have biodiversity with unique characteristics, Minister Gusti Muhammad Hatta said when commemorating the IDB at Cibodas Botanical Garden, Pangrango, Bogor, West Java, Monday (May 22). The newly inaugurated biodiversity parks are located in East Java, West Java and North Sulawesi Provinces. Later, similar biodiversity parks will also be built in other regions such as West Sumatra, Yogyakarta, and Lampung. The United Nations (UN) proclaims May 22 as the International Day for Biological Diversity to increase understanding and awareness of biodiversity issues worldwide.

RI Not Human Rights Violator
Embracing democracy and practicing transparency, Indonesia is not a human rights violator, Vice President Boediono said. "Human rights violation can committed by a state but thanks God Indonesia is not such a country," the vice president said when opening the 3rd Coordination Meeting of National Action Plans for Human Rights for 2011-2014 at his office here on Wednesday attended by Coordinating Minister for People`s Welfare Agung Laksono and Justice and Human Rights Minister Patrialis Akbar. According to the vice president, the governments will punish people only for obvious reasons. That is why he said that Indonesia had been chosen by the International community as one of the members of the United Nations Human Rights Council. "We should be proud that at this time Indonesia becomes a model in which human rights are practiced well enough. And it is marked with the selection of Indonesia as a member of UN Human Rights Council," Boediono said.

RI Foreign Minister: NAM Never As Strong As Now
Foreign Affairs Minister Marty Natalegawa said the Non-Aligned Movement (NAM) is still important as a forum to share experiences in solving world problems. "At its establishment in 1961, our Movement was far from the robust force for peace and progress that it is today," Marty said in his speech at the opening of the 16th Ministerial Meeting of the Non-Aligned Movement (NAM) here Wednesday. Inspired by the Bandung Principles and the UN Charter, NAM had planned a more peaceful world, he said. "We must make sure that our movement is more than ready to face the challenges in the 21st century, because the current challenges are very complicated, varied and transnational," he said.

Monday, May 23, 2011
Work Still Needed to Reach 7% Growth
Economists and analysts have backed the government's economic growth forecast for next year, putting their faith in improved infrastructure development and greater foreign direct investment. "This year, we expect 6.4 economic growth without any meaningful infrastructure projects. Next year, with infrastructure development set to take off, we can see 7 percent growth," Aviliani, an economist at the Institute for Development of Economics and Finance, told the Jakarta Globe on Sunday. Finance Minister Agus Martowardojo said in a speech to the House of Representatives last week that economic growth was forecast to reach 6.5 to 6.9 percent next year. Government forecasts for growth this year are at 6.5 percent.

Government Prepares Rp 3T to Buyback Bonds at Times of Crisis
The government has allocated Rp 3 trillion (US$320million) from this year's state budget to buyback its own debt paper at times of emergency or crisis that could potentially affect the country's economic stability. Rahmat Waluyanto, director general of the country's debt management office, said Monday that the prepared Rp 3 trillion funds would be used as the government's first line of defense in tackling massive capital outflows. The government will continually monitor and pay close attention to the nation's bond market to determine any necessity to intervene. "The second line of defense would be the bond stabilization framework by state-owned companies. The government's function will be to signal the necessity for the firms to step in," Rahmat told reporters after a meeting with lawmakers at the House of Representatives in Jakarta.

News Focus: Billions Os Trees To Be Planted Across Indonesia
Realizing that tree-planting can make a valuable contribution to the fight against global warming, the Forestry Ministry and the Indonesian National Youth Committee (KNPI) will plant billions of trees across the country. Tree-planting is believed to provide a host of wider environmental and socio-economic benefits and therefore KNPI launched a youth movement on Friday to plant one billion trees. In observance of National Awakening Day on Friday, May 20, 2011, the Indonesian National Youth Committee launched the movement to plant one billion trees nationwide in 33 provinces. KNPI chairman Aziz Syamsuddin said over the weekend that the movement was initiated by KNPI to save the environment, and it was expected to be emulated by other youth organizations across the country.

Norway Hails RI's Moratorium On Forest Clearing
Norway`s Minister of the Environment and International Development Erik Solheim has hailed the signing of a Presidential Instruction on a two-year moratorium on forest clearing in Indonesia. "The moratorium is an important step forward for Indonesia. What Indonesia has embarked on is a very serious development choice. Indonesia`s efforts to combine the goal of 7% economic growth with reducing greenhouse gas emissions by 26% by 2020 are commendable," k Solheim said in a press statement in Oslo, Norway. The moratorium will help facilitate the attainment of the two goals, and constitutes an important part of a broader land use reform agenda in Indonesia, though it will not in itself ensure success, he stated.

Issuers At Indonesian Stock Exchange Increase
PT Buana Listya Tama listed its shares at the Indonesia Stock Exchange (BEI) on Monday increasing the number of issuers at the exchange to 425. PT Buana Listya Tama Tbk. (BULL) is a company operating in the ship transportation service and is the subsidiary of PT Berlian Maju Tanker (BLTA). On its first day trading BULL shares were opened up Rp15 per share or 9.67 percent to Rp170 from the initial offering price of Rp155 per share. The company`s president director, Henrianto Kuswendi, said the company`s fundamental business would be positive in the future in line with the full implementation of cabotage principles and the increased target of oil and gas production in Indonesia.

Indonesia to Sell Pindad Weapons to Laos and Cambodia
The government will continue to offer domestic made weapons to ASEAN countries. Defense Minister Purnomo Yusgiantoro said that one of the types of weapon proposed is the SS2 (Assault Rifle 2) produced by state-owned weapons manufacturer, PT. Pindad . "But there has been no positive responses yet," he said in Jakarta on May 22. Laos and Cambodia are among the interested countries. In addition, the government also offered the weapons to Brunei Darussalam. The other weapon proposed was a grenade launcher with a night vision mechanism.

Friday, May 20, 2011
Government Expects Growth of Up To 6.9% in 2012
The government is targeting economic growth of between 6.5 and 6.9 percent in 2012, the finance minister says. Finance Minister Agus Martowardodjo submitted the target, along with other macroeconomic assumptions for the 2012 fiscal year, to members of the House of Representatives at a plenary session on Friday. Once approved by the House, the assumptions will be used to compose a draft for the 2012 state budget. Finance Minister Agus Martowardodjo said the government was optimistic with the target, as it was in line the "positive signals" of the global economy for the year 2012. "Based on [the positive signals], the government is optimistic that [Indonesia's] economy will continue to grow in 2012, by between 6.5 and 6.9 percent," Agus said.

Government to Invite Bids On 20 Oil, Gas Blocks This Year
The Indonesian government will invite bids on 20 oil and gas blocks in the first round of such a move this year, a senior energy official said. The director general of oil and gas at the ministry of mineral resources and energy, Evita Legowo, said here on Thursday nine of the blocks would be offered through a regular bidding mechanism and the other 11 through direct bidding. "The announcement will be made tomorrow at the closing of the Indonesia Petroleum Association (IPA) convention," she said. The nine blocks to be offered through regular bidding are Bulu Rembang, Offshore Timor Sea I, Offshore Timor Sea II, Halmahera I, Halmahera II, Halmahera III, West Aru I, West Aru II and Arafura Sea II. The eleven blocks to be offered for direct bidding are Ranau, Northeast Madura, West Tanjung, Belayan, East Simenggaris, North Ganal, Babar Selaru, Obi, North Semai, West Berau and Semai IV.

'Middle Way' Economic Policies for RI, Says SBY
President Susilo Bambang Yudhoyono says Indonesia does not apply neo-liberal economic policies, but opts for a "middle way" approach that combines market efficiency with government intervention. According to Yudhoyono, neo-liberalism is not suitable for Indonesia. "We don't only pursue growth, but also equity and people's welfare," he said in his keynote address before a lecture from South Korean economist Ha-Joon Chang at the State Palace yesterday. The President expected the lecture to provide a different viewpoint for Indonesia. Ha-Joon Chang is an economics professor and Cambridge University graduate. The two-hour lecture was attended by the President, Vice President Boediono and cabinet ministers. Yudhoyono said Indonesia was determined to become a more advanced nation over the next 15-20 years. However, many are pessimistic about Indonesia's ability to become an advanced country.

RI Soon to Ratify ASEAN Counter Terrorism Convention
Indonesia is soon to ratify the ASEAN Convention on Counter Terrorism (ACCT), the Foreign Ministry`s Director for ASEAN Political and Security Cooperation, Ade Patmo Sarwono, said here on Thursday. "The process (toward ratification) is ongoing. Hopefully, it will happen this year," Ade said, adding that the government needed the approval of the House of Representatives (DPR) to the convention. He said one of the unique factors in the convention was the existence of rehabilitation support for former terrorists or people related to terror activities. The ACCT was signed by the ASEAN Leaders in Cebu, Philippines on 13 January 2007 during the 12th ASEAN Summit. The Convention aims to enhance the region?s capacity to confront terrorism in all its forms and manifestations and to deepen counter-terrorism cooperation among the region?s law enforcement and other relevant authorities. It would be elevated to become a regional treaty once it has received ratification from at least six ASEAN Member States.

VP Hopes RI's Steel Industries Will Increase Production
Vice President Boediono has expressed hope that Indonesia's upstream and downstream steel industries will be able to increase their production. Making a visit to state-owned steel company PT Krakatau Steel in Cilegon, Banten province, on Thursday, Boediono said he was optimistic that steel industries in Indonesia will develop well. "I am optimistic that we can develop steel industries in a relatively short time and that they also can raise the capacity of our upstream and downstreem steel industries," the vice president said. Boediono on the occasion was among others accompanied by Industry Minister MS Hidayat and State Minister for State Enterprises Mustafa Abubakar.

Indonesian Team On Top of the World After Everest Summit
A group of Indonesian climbers on Friday took in the view from the top of the world when they summited Mount Everest. The team of four - Broery Andrew Sihombing, Janathan Ginting, Xaferius Frans and Sofyan Arief Fesa - were accompanied by a Japanese guide and two Sherpas on their early-morning ascent as they notched up the biggest achievement yet in their quest to scale the tallest peaks on all seven continents. In a phone call from base camp, Julius Mario, the manager of the Seven Summits team, said the climbers - all of them students from Bandung's Parahyangan Catholic University - had chosen to summit on National Awakening Day. Fiona Ekaristi Putri, head of Parahyangan's Mahitala nature club, which is organizing the expedition, said the decision was made in the hope of "inspiring all Indonesians, particularly the youth, to contribute to [the development of] the country."

Thursday, May 19, 2011
Rupiah Strengthens on Fed Rate Signal, Regional Stock Rally
Indonesia's rupiah gained for a second day after a Federal Reserve report signaled interest rates in the U.S. will remain low, maintaining the country's yield advantage over the world's largest economy. The currency traded near a seven-year high as the MSCI Asia-Pacific Index of regional stocks advanced for a second day. Overseas investors increased holdings of Indonesian government debt by 1.5 percent from the end of April to 224.69 trillion rupiah ($26.3 billion) as of May 16, according to data from the Debt Management Office. Indonesia's benchmark interest rate is 6.75 percent, compared with a maximum of 0.25 percent in the U.S. "Improved sentiment toward emerging-market assets is supporting the rupiah," said Mika Martumpal, a currency analyst at PT Bank Commonwealth in Jakarta. "The Federal Reserve report hints it will extend the low interest-rate policy."

SBY Signs Decree on 2-Year Deforestation Moratorium
President Susilo Bambang Yudhoyono has finally signed the presidential decree declaring a two-year moratorium on new logging concessions in Indonesia. The news was confirmed on Thursday afternoon by Agus Purnomo, a presidential staff for climate change. The moratorium on new concessions in peatland and primary forests is part of a bilateral agreement with Norway, in exchange for which Indonesia will receive $1 billion in funding for Reducing Emissions from Deforestation and forest Degradation (REDD-plus) activities. The moratorium was expected to begin on Jan. 1, but was delayed pending the signing of the presidential decree. It is not yet clear when the moratorium would officially go into effect. Environment Minister Gusti Muhammad Hatta has previously said that despite the lack of a decree, the moratorium had been in effect all year.

Indonesia Rating Bets Drive New Sukuk Demand: Islamic Finance
Speculation Indonesia's credit rating will be raised to investment grade may drive demand for the government's second sale of global Islamic bonds. "I'd be interested because there's the possibility of an investment-grade rating," Mohd Noor Hj A Rahman, chief executive officer at Kuala Lumpur-based OSK-UOB Islamic Fund Management Bhd., said in an interview May 12. "Indonesia is a big market with potential for economic growth." Standard and Poor's signaled last month it may raise the sovereign debt rating to investment grade after changing the outlook on Indonesia's debt to positive, citing strength in the economy, which the government expects to grow up to 6.5 percent in 2011, the fastest pace in seven years. An upgrade would open up a larger pool of investors for the securities, according to Union Investment Privatfonds in Frankfurt, OSK-UOB Islamic Fund Management and Al Baraka Banking Group BSC in Manama.

Crude, Palm Oil Recoveries Boost JCI As Investors Hunt for Emerging Assets
The continued recovery in commodity prices from last week's reversals helped the Jakarta Composite Index to a second day of gains, boosted by investors seeking assets in emerging markets. "There was a significant increase in commodity prices, especially in the energy sector, that helped boost local equities. Crude oil rebounded on Wednesday, and palm oil continued its gains," said Ibrahim, an analyst at Harvest International Futures. The JCI rose 19.6 points, or 0.5 percent, to close at 3,859.81. About 9.3 billion shares worth Rp 8.1 trillion ($948 million) changed hands, a sharp jump from Wednesday's 6.4 billion shares worth Rp 5.5 trillion. Decliners edged gainers 122 to 112. "The heavy trading volume and trading value today was mostly caused by the crisis in developed markets. Global investors see growing demand for commodities, so they tend to focus their investment on commodity producers," Ibrahim said.

RI's Spa Industry Third Biggest in Asia: Tourism Minister
The spa industry in Indonesia has become the third fastest developing and biggest in Asia after those in India and China, Tourism Minister Jero Wacik said here on Wednesday. The minister said in a press statement "in 2010 the spa industry in Indonesia grew seven percent or almost as fast as that in China which grew eight percent and that in India which developed 11 percent." This meant Indonesia`s spa industry had undergone significant growth, he said. The minister said the spa industry could not be separated from tourism and therefore it was also contributing economically to Indonesia. "We do not know the exact number of spas in the country or how many workers they have absorbed and how much it has contributed to the economy. However I believe the industry is making a very significant contribution to the economy," he said.

VP: No More Low-Wage Policy to Attract Investment
Vice President Boediono called on all parties especially the Boards of Wage Policy Makers not to think of a low wage any longer as an allurement for attracting investment. "Do not follow the paradigm that a low wage will attract investment. That is true and I do not agree with it," he said in his directives when opening the Forum of Consolidation of Boards of Wage Policy Makers from across Indonesia at his office here on Thursday. He said there were a lot of things that could be done to attract investment apart from pressing down workers` wage such as through improvement of infrastructure, accelerating licensing and improvement of business climate. He said the Boards must not think that the wage must be made low to attract investment when giving advises or considerations. This paradigm must be changed, he said.

US, Australia Rebuild Schools in Sumatra
U.S. Ambassador Scot Marciel joined Australian Ambassador Greg Moriarty in Padang, West Sumatra on Wednesday for the handover of 34 West Sumatran schools jointly reconstructed and rebuilt with $10 million from the two governments, the US Embassy here said in its official website on Thursday. The schools, destroyed by the September 2009 West Sumatra earthquake, were rebuilt to meet Indonesian earthquake resistance standards under the policy to "build back better." "These new schools will not only give thousands of children safe places in which to learn, they will also help improve basic education throughout the region," explained Ambassador Marciel. The partnership with Australia represents effective cooperation among countries to make the best use of limited resources. It is also another example of the U.S.-Indonesia Comprehensive Partnership, which encourages cooperation in various sectors to promote mutual prosperity, security, and understanding. One of the top joint priorities is to ensure Indonesian children receive a quality education.

News Focus: Indonesian Climbers About to Conquer Seven Summits
A team of six Indonesian climbers is two steps away from conquering the world`s seven highest mountains known as seven summits after they set foot on Mt Denali/McKinely in Alaska, North America, on Sunday (May 15). The 6,194 meter-high mountain is the fifth of seven of the world`s highest mountains they have planned to scale in their two-and-a-half-year expedition. The team reached the peak of Denali/McKinely known as one of the most difficult mountains at 09.15 p.m. local time on Sunday (May 15) or 12.15 western Indonesian time on Monday (May 16) following 15 days of climbing, the Secretariat of Seven Summits in Jakarta said in a statement two days after the team reached the peak. Only four of the five core climbers managed to reach the peak. They were Fajri Al Lutfi, Iwan Irawan, Martin Rimbawan and Nurhuda. The other core climber, Ardhesir Yaftebbi, along with a guide returned to vase camp to accompany Metro TV journalist Popo Nurakhman who had difficulties when the team reached an altitude of 5,900 meters above sea level.

S Korea is Biggest Market for RI-Made CN 235 Aircraft
Coordinating Minister for Economic Affairs Hatta Rajasa said South Korea was the biggest market for Indonesian-made CN 235 aircraft. "South Korea has ordered the biggest number of CN 235 aircraft so far in addition to orders from other countries," he said here on Wednesday after the opening of the Indonesia-Kore Working Level Task Force Meeting. He said South Korea had been attracted by the Indonesian made aircraft because in terms of reliability and cruising speed it could compete with planes made by other countries. "Even now Korea plans to increase the quota of its aircraft purchase," he said. He said compared to Casa-type aircraft the quality of CN 235 was better. "This is what the Koreans have said. The CN 235 is far better than Casas. Therefore they are interested in purchasing more," he said.

Wednesday, May 18, 2011
RI Among Emerging Economies Redefining Global Economic Structures
Indonesia and five other major emerging economies - Brazil, China, India, South Korea, and Russia - are redefining global economic structures, according to a new World Bank report. "By 2025, six major emerging economies will account for more than half of all global growth, and the international monetary system will likely no longer be dominated by a single currency," the Washington-based World Bank said in a press release Wednesday, quoting its latest report on "Global Development Horizons 2011 - Multipolarity: The New Global Economy". As economic power shifts, these successful economies will help drive growth in lower income countries through cross-border commercial and financial transactions. The report projects that as a group, emerging economies will grow on average by 4.7 percent a year between 2011 and 2025.

Fulbright Indonesia Program Sends Largest Group of Students to US
This year's Fulbright Pre-departure Orientation and networking event brought together the largest group of Fulbright programs in AMINEF`s 19 year history and Fulbright`s 59 year history in Indonesia, the US embassy said in a press statement here Wednesday. U.S. Ambassador to Indonesia Scot Marciel, Deputy Minister of Education Fasli Jalal and former Indonesian Ambassador to the U.S. Dorjatun Kuntoro Jakti opened the Annual American Indonesian Exchange Foundation (AMINEF) Fulbright Pre-Departure Orientation in Jakarta on May 13. The conference which included 204 Indonesian Fulbright and other related programs candidates and 20 American grantees is designed to establish fundamental understanding of the vision and mission of the Fulbright program among the Indonesian candidates and American grantees. The event is also designed to prepare the Indonesian candidates for their upcoming academic programs in the United States.

Indonesian Students Grab Gold in Science Olympiad
Some Indonesian students have won a gold medal in an international science competition in Tblisi, Georgia, an official with Santa Laurensia school in South Tangerang said Wednesday. Santa Laurensia spokesperson Risa said in a press statement sent to The Jakarta Post that Christie Angelia Ruslim and Juan, both students from high school SMA Santa Laurensia, earned a gold medal for their research project titled, "The utilization of processed tire waste in joint sealant". They presented their findings at the 5th International Young Inventors Project Olympiad in Tblisi, Georgia, between May 13 and 15. Hundreds of students aged between 12 and 19 from 38 countries took part in the contest.

Indonesia A Global Economic Axis by 2025: World Bank
The World Bank has predicted that Indonesia will be one of the six emerging countries that will be an economic axis by 2025. Indonesia's economic performance, along with Brazil, China, India, South Korea and Russia will control more than half of the world's economy. There will no longer be a single currency domination (US dollar) in the global financial system, says the report. This was cited by the World Bank in its recent research report titled "Global Development Horizons 2011-Multipolarity: The New Global Economy" released yesterday. According to the World Bank, the high economic growth of the six emerging economy countries will generate economic development in other countries. Based on the World Bank's research, the total economic growth of the six main countries will reach 4.7 % per year on average between 2011 and 2025. The figure is higher than the economic performance of advanced countries which is projected to be 2.3% in the same period. Nevertheless, advanced countries such as Japan, the UK, Europe and the US will still play their role.

RI Appointed Host Of D-8 Ministerial Meeting in 2012
Indonesia has been appointed to host the third ministerial meeting of Developing-8 (D-8) Organization of for economic cooperation in 2012. "Indonesia has been appointed to host the Third Ministerial Meeting of D-8 in 2012," Yulistyo Mudho, the head of the marine affairs and fisheries ministry`s statistic data center, said here Wednesday. The decision to let Indonesia host next year`s D-9 ministerial meeting was made at the D-8 Senior Officials Meeting (SOM) held in Tehran, May 17, 2011. At the SOM, the Indonesian delegation was led by the agriculture ministry`s research and development unit head, Dr Haryono. The Second D-8 Ministerial Meeting is to be held on May 18, when Indonesian Marine Affairs and Fisheries Minister Fadel Muhammad is to lead the Indonesian delegation.

JCI Gains as Commodity Prices, Risk Appetite Rise
The Jakarta Composite Index joined its regional peers in rising on Wednesday, taking advantage of rising commodity prices. The JCI gained 40.98 points, or 1.1 percent, to close at 3,840.21. About 6.4 billion shares worth Rp 5.5 trillion ($643.5 million) changed hands, with gainers beating decliners 169 to 60. "Regional markets boosted the JCI today. Commodity prices climbed after the dollar weakened due to declining US housing data during April that was announced on Tuesday," said Praska Putrantyo, an analyst at Infovesta Utama. The US Commerce Department reported on Tuesday that housing starts fell 10.6 percent year-on-year to 523,000 in April. Perusahaan Perkebunan London Sumatra Indonesia, the nation's second-largest listed plantation firm, rose 1.1 percent to Rp 2,400. Palm oil futures gained 1.5 percent to 3,305 ringgit ($1,090) per metric ton in Kuala Lumpur.

Rupiah Gains After Global Funds Add to Indonesian Debt Holdings
Indonesia's rupiah gained, rebounding from its weakest level in more than a week, after global funds added to holdings of the nation's debt assets to benefit from higher yields. Overseas investors boosted holdings of Indonesian government debt by 0.9 percent from the end of April to 223.37 trillion rupiah ($26.1 billion) as of May 12, according to official data. The nation's benchmark rate of 6.75 percent compares with a maximum of 0.5 percent in the U.S. and the U.K. The Bloomberg-JPMorgan Asia Dollar Index rose as regional stocks climbed. "Most Asian currencies are stronger today, including the rupiah, driven by the stock markets" said Lindawati Susanto, head of treasury at PT Bank Resona Perdania in Jakarta. "There's risk appetite in the market driven by confidence about growth in Asia. On the Indonesian front, the economy is doing well."

Obama's Image Sours in Muslim Nations, Except Indonesia: Poll
The image of the United States has soured in Muslim nations in the past year, says a poll released two days before President Barack Obama is due to deliver a speech on the pro-democracy revolts sweeping the Arab world. Only in Indonesia, the world's most populous Muslim nation where Obama spent part of his childhood, does a majority have a favorable view of the United States, says the poll by the Pew Research Center. But even the number of Indonesians with a favorable view of the United States was down by five percentage points from 59 percent in 2010. The Pew survey found that the US president remains unpopular in most Muslim nations, and most disapprove of the way he has handled calls for political change roiling the Arab world.

US Government Uncovers Dayak Skeleton Smuggling Case
The US government was recently able to uncover a smuggling case involving five 18th century carved human skeletons believed to belong to a Dayak tribe in Kalimantan. The US government handed over the skulls to Indonesia at a ceremony at the Indonesian consulate general in New York on Monday (May 16). The US was represented by Mona B Forman, a special agent of the US Immigration and Customs Enforcement (ICE)-Homeland Security Investigation (HSI), and Indonesia by Zaherman Muabezzi, the acting consul general in new York. The ancient relics smuggling attempt was foiled after US Customs and Border Protection (CBP) officers` curiosity was aroused by a package at the Newark postal office, New Jersey, in August 2010. The suspicious package had been sent from Bali, Indonesia, as written on the sender`s address along with notes that mentioned the objects inside the package were worth less than five US dollars.

News Focus: CTI Countries Renew Talks On World Largest Coral Reefs
Local authorities of six countries grouped in the Coral Triangle Initiative (CTI) began four days of talks at Wakatobi, Southeast Sulawesi province on Monday evening, on how to preserve the world largest coral reef resources which sustain the lives of over 120 million coastal people in Indonesia, Timor Leste, Papua New Guinea, Malaysia, the Philippines and the Solomon Islands. "I hope through this meeting we will be able to agree on the formation of an association of district heads and mayors of coastal areas in six CTI countries," Wakatobi District Head Hugua said when he opened the meeting. The meeting, which will discuss a wide range of coral reef related issues such as food security, global climate change, energy scarcity and environment, is expected to formulate concrete steps as it is being attended by authorities directly in charge in the fields.

Australia Appreciates RI for Human Smuggling Eradication
The Australian government appreciated the Indonesian government for its efforts to stop human smuggling to its neighbor in the south. "We very much appreciated the Indonesian authorities for eradicating human smuggling," Australian ambassador to Indonesia Greg Moriarty said in his press release here Monday night. He said his government has a commitment to eradicate human smuggling especially for business motives. "We are firmly determined to destroy this kind of business of human smuggling," he said. In the press release, the Australian embassy in Jakarta also cited a statement of Australian Home Minister Brendan O`Connor on a new agreement on asylum seekers.

Friday, May 13, 2011
Cambodia Agrees to RI's "Package Solution" Proposal
Cambodia has agreed to Indonesia`s "Package Solution" proposal as the basis for its further efforts to help find a peaceful solution to the Thai-Cambodian border conflict, Foreign Affairs Ministry spokesman Michael Tene said on Friday. The Package Solution was proposed last May 9 during a trilateral meeting between Froeign Minister Marty Natalegawa and his counterpart from Cambodia Hor Namhong and from Thailand Kasit Piromya. After the meeting, both Thai and Cambodia ministers promised they would convey Indonesia`s proposal to higher authorities in their respective countries. "Recently I received word that Cambodia has agreed to the package solution while Thailand needs more time to decide internally whether or not they will accept Indonesia`s proposal," Michael said.

Eight New Reef Fish Found Off Bali
Scientists from Conservation International have discovered eight new fish and one new coral species off Indonesia's Bali island. The new species include eels and damsels, the colorful little fish that dart among coral branches and help give reefs their dazzling appearance while playing a key role in reef ecology. "We have carried out a marine survey in 33 sites around Bali island. We have identified 952 reef fish, and among them we discovered eight new species," team senior adviser Mark Van Nydeck Erdmann said. The surveys were carried out off the popular tourist island's northeast coast at Tulamben, a well--known recreational dive site, as well as Nusa Dua, Gili Manuk and Pemuteran, at depths of 10 to 70 meters.

US Preparing $165 Million for RI's Education
The United States is preparing US$165 million in funds to help improve the quality of education in Indonesia, its diplomat said. "One of our government`s focuses is improving the quality of education in Indonesia. We are preparing at least US$165 million for that purpose," US Consul General for Indonesia Kristen Bauer, said after delivering a general lecture at the Ambon State Institute of Islamic Studies (IAIN) on Thursday. She said the funds were part of the US commitment to promoting the Indonesian education. The US$165 million in funds would among others be used to provide scholarships to Indonesian students wishing to pursue higher education in the US, strengthen partnership among universities in Indonesia, and finance student exchange programs, she said.

RI Very Committed to Nuclear-Weapon-Free World
Indonesia is very much committed to contributing to a neclear-weapon-free world, a legislator said. The statement was made by Muhammad Najib, head of the delegation of the House of Representatives (DPR)`s Commission I when visiting the Secretariat of Preparatory Commission Comprehensive Nuclear-Test Ban Treaty Organization (CTBTO) in Vienna, Third Secretary of the Indonesian embassy in Vienna Luna Amanda Sidqi said in a press statement, Thursday. Muhammad Najib, a PAN politician, was accompanied by Yahya Sacawiria (PD), Muchamad Ruslan (Golkar), Theodorus Yacob (PDI-P), and Syahfan Badri (PKS) in the meeting with CTBTO Executive Secretary Ambassador Tibor Toth. Countries which possess nuclear weapon must stop all kinds of nuclear weapon testing and must reduce the numbers of nuclear weapons until finally the world is free of nuclear weapons, he said.

US Launches Project to Support RI's Economic Analysis Development
The United States embassy here has launched a Support for Economic Analysis Development in Indonesia (SEADI) project worth 15.8 million US dollars. According to written information from the US embassy Thursday, the project will provide support to the Indonesian government to jointly develop the economic policies necessary for rapid, inclusive, and sustainable economic growth. The project will also help strengthen government policies to spur job creation, and poverty reduction. Sponsored by the US Agency for International Development (USAID), the SEADI project will advance the objectives of the Indonesia-U.S. Comprehensive Partnership. The Partnership is working to promote prosperity, sustain the environment, strengthen democracy, enhance understanding, and ensure security for Indonesians and Americans.

South Sulawesi to Host "Tour De Toraja" in 2012
South Sulawesi is to host an international cycling event dubbed "Tour De Toraja" in 2012 as part of the regional administration`s efforts to promote the province`s tourism, a local cycling sports official said. To be organized in parallel with a "Visit South Sulawesi 2012" program, one of the main goals of the event was to make Toraja region`s tourist attractions better known to the international community, Baharuddin Makkasau, chairman of the South Sulawesi chapter of the Indonesian Cycling Association (ISSI), said here Thursay. At least 25 cyclist teams from 20 countries, including Indonesia as the host, were to compete in the Tour de Toraja which would take place in several stages on routes passing through a number of towns in the region.

Ambassador Spells Out US Policy at Islamic School
America's championing of freedom of expression does not extend to calls in support of terrorism and violence, the US ambassador said on Thursday. Ambassador Scot Marciel, speaking during a visit to the Al Muayyad Islamic boarding school in Solo, Central Java, said calls for vengeance by hard-liners in the province following the death of Osama bin Laden were indefensible. "We can understand differences of opinion as long as the parties can still be invited to dialogue," he said. "We're certainly glad to dialogue with anyone. However, we will not agree with the opinion of anyone who supports terrorism and violence." He said all parties needed to come to a mutual understanding to overcome hatred. He was aware there were those who believed the US government was waging a war against Islam, but insisted that the US Constitution would never permit the government to create policies that disadvantaged certain groups or religions.

Thursday, May 12, 2011
RI's Payments Balance Shows US$ 7.7 Billion Surplus
Indonesia's balance of payment recorded a surplus of US$7.7 billion in the first quarter of 2011. Bank Indonesia head of public relations, Difi A Johansyah said here on Wednesday. The surplus contributed by current, capital and financial transactions to make the country`s foreign currency reserves in the period to increase to US$105.7 billion which is equal to 6.2 months of imports and for paying government`s overseas debts, he said. He said the declining trend in current account surplus since the fourth quarter of 2009 stopped at the first quarter of 2011 with a surplus booked at US$1.9 billion or higher than the surplus of US$1.1 billion in the fourth quarter of 2010. The improvement in the current transactions was driven by the decline in the income payments especially debt interest and travel service payment following the completion of hajj season which are all seasonal in nature.

Indonesia Refrains From Raising Interest Rate as Growth Eases
Indonesia's central bank kept interest rates unchanged for a third straight month to bolster slowing economic growth, relying on an appreciating currency to contain inflation. Bank Indonesia kept its benchmark reference rate at 6.75 percent, it said in a statement in Jakarta on Thursday. The decision was predicted by all 10 economists surveyed by Bloomberg News. Indonesia has refrained from boosting borrowing costs since its first move in more than two years in February, in contrast with neighbors from Malaysia to India where officials have accelerated monetary tightening. The central bank may need to resume rate increases later this year should price pressures climb, according to Bambang Brodjonegoro, the finance ministry's head of fiscal policy.

RI's CPO Output Expected to Reach 40 Million Tons
Indonesia`s crude palm oil (CPO) output is projected to reach 40 million tons in the next 10 years, former agriculture minister Bungaran Saragih said. The target could be achieved if the government focused on increasing the productivity of oil palm plantations, he said at an international conference & exhibition on palm oil (ICE-PO) at the Jakarta Convention Center on Wednesday. "Today the area of land is limited so it is impossible to expand oil palm plantations. What we can do to raise production is increasing the productivity of oil palm plantations," he said. The productivity of oil palm plantation currently reached 3 tons per hectare and the national CPO output stood at 22-23 million tons per year, he said.

US$ 683 Million Needed for Solar Energy Investment
The government needs an investment of around US$ 683 million to optimize solar energy as an energy resource. The investment is needed to produce solar electricity with a capacity of 180 megawatts (MW) in 2013. Energy and Mineral Resource Minister Darwin Zahedy Saleh, explained that solar energy was very important for energy diversification as national fuel production has diminished. "We can increase the proportion by accelerating the production of solar and wind energy," he said in Jakarta yesterday. Indonesia has significant solar energy potential, but the optimal capacity is around 13 MW. From that amount, PLN manages around 2 MW. In 2011, with a target to channel electricity to 100 islands, PLN will increase its solar energy capacity to 10-20 MW. One of the obstacles in developing solar energy is the lack of domestic solar cell component producers.

President to Write Guidelines to Convert Radical Muslims
As part of efforts to halt the spread of radical Islam, President Susilo Bambang Yudhoyono has promised to write guidelines for religious leaders to convert Muslims back to the true path, the Indonesian Islamic Propagation Council (DDII) says. "He [President Susilo Bambang Yudhoyono] will write guidelines for preachers working to convert people," council chief Syuhada Bahri said after a meeting with the president on Thursday. "The guidelines will be handed to us to explore and to deliver them to our preachers in all Indonesian regions. "The council and the president agreed that if we understood Islam correctly, then there wouldn't be any violations or religious problems. A misunderstanding of Islam has tainted the religion."

US Launches Project to Support RI`s Economic Analysis Development
The United States embassy here has launched a Support for Economic Analysis Development in Indonesia (SEADI) project worth 15.8 million US dollars. According to written information from the US embassy Thursday, the project will provide support to the Indonesian government to jointly develop the economic policies necessary for rapid, inclusive, and sustainable economic growth. The project will also help strengthen government policies to spur job creation, and poverty reduction. Sponsored by the US Agency for International Development (USAID), the SEADI project will advance the objectives of the Indonesia-U.S. Comprehensive Partnership. The Partnership is working to promote prosperity, sustain the environment, strengthen democracy, enhance understanding, and ensure security for Indonesians and Americans.

RI Partners U.S. in Developing Global Entrepreneurship
The Indonesian government and the private sector partnered the United States in development of the Global Entrepreneurship Program Indonesia (GEPI), which includes entrepreneurial trade mission in 2011. "We are involved directly to the Global Entrepreneur Program cooperation with the U.S. government to promote global entrepreneurship, in which Indonesia became one of the pilot countries," said Secretary General of the Indonesian Young Entrepreneurs Association (HIPMI), Ridwan Mustafa, in here on Wednesday. U.S. has stated its commitment that through GEPI it will serve as an inspiration, facilitator, and catalyst for entrepreneurship in countries it has partnered, including Indonesia. Ridwan hoped the program can be continued by next executives of HIPMI. "We expect this program to increase the dissemination of the entrepreneurship spirit in Indonesia," he said.

Indonesian Stock Exchange Launches Sharia Index
PT Bursa Efek Indonesia (BEI) officially launched the Indonesia Sharia Stock Index (ISSI) here on Thursday as a reference for investors in sharia shares. BEI president director Ito Warsito said he hoped the index could become a main indicator that reflects the entire performance of sharia shares listed in BEI. Besides that, he said, he hoped it could also help correct public wrong perception so far that sharia shares only consist of 30 shares recorded in the Jakarta Islamic Center. "Later the method of calculating the ISSI will be the same as that for other indexes in BEI using market capitalization weighted average," he said. He said the components include all shares put in the Sharia Securities List (DES) issued by the Supervisory Board of Capital Market and Financial Institutions (Bapepam LK) once in six months.

President: Pancasila Must Be Development's Long-Term Foundation
President Susilo Bambang Yudhoyono said Pancasila, the five basic principles of the Indonesian Republic, should serve as the long-term foundation and vision of national development. The president made the statement at a meeting with representatives of the Indonesian Communion of Churches (PGI) and Indonesian Gospel Institute (PP-PGLII) at his office on Thursday. In a press conference after the meeting, PP-PGLII chairman Nus Reimas said President Yudhoyono stressed the importance of Pancasila as a cohesive force of the nation in development. "The president warned that as a nation we must be thankful that the nation had the vision and foundation of Pancasila to keep marching on," Nus said.

Wednesday, May 11, 2011
Indonesia May Extend Interest-Rate Pause as Inflation Slows
Indonesia's central bank will probably keep interest rates unchanged for a third consecutive meeting to support the economy, allowing gains in the rupiah to reduce inflationary pressures. Bank Indonesia will keep its benchmark reference rate at 6.75 percent, according to all 10 economists surveyed by Bloomberg News. The central bank is due to release its decision in Jakarta tomorrow. Indonesia has refrained from boosting borrowing costs since increasing the key rate in February for the first time in more than two years, in contrast with neighbors from Malaysia to India where officials have accelerated monetary tightening. President Susilo Bambang Yudhoyono's policy makers have extended fuel subsidies and let the rupiah climb the most in Asia after Taiwan this year to contain imported inflation. "There's no strong reason for Bank Indonesia to raise rates this month and by holding, it will provide an opportunity for banks to give credit and that will boost economic growth for the rest of this year," said Eric Alexander Sugandi, a Jakarta-based economist at Standard Chartered Plc. "We've adjusted the timing of the next rate increase to August."

Indonesia's Rupiah Rises for a Fourth Day as Stocks Advance
Indonesia's rupiah advanced for a fourth day as regional stocks rallied on rising commodity prices and after China pledged to increase imports. The currency traded near a seven-year high as the MSCI Asia-Pacific Index of regional shares rose the most in more than a week. The rupiah has strengthened 5.1 percent this year as overseas investors bought $1.8 billion more local equities than they sold. China said yesterday it will seek to boost consumer spending and increase imports, according to a statement released following the annual Strategic and Economic Dialogue with U.S. officials. The stocks "gained on earnings and the commodities rally and that's helping to boost sentiment," said Joanna Tan, a Singapore-based regional economist at Forecast Singapore Pte.

President Receives UN Disaster Management Award
President Susilo Bambang Yudhoyono has received a UN award for his achievement in disaster management and risk reduction. UN Secretary General Ban Ki-moon announced the award "Global Champion for Disaster Risk Reduction" during the opening ceremony of the 3rd conference on global platform for disaster risk reduction also attended by World Bank Director Sri Mulyani Indrawati here on Tuesday afternoon. In his speech broadcast on the video, President Yudhoyono expressed gratitude to the UN for the award. "I accept this as recognition of the determination and hard work of all Indonesian in responding to the challenges of natural disasters," he said. Yudhoyono said Indonesia is the most vulnerable country to natural disasters. "If there is something new in our short-, medium- and long-term strategies the long-term development will be disaster risk reduction," he said.

Anti-Corruption Campaigns Need International Support: President
President Susilo Bambang Yudhoyono said anti-bribery campaigns need global cooperation to trace money laundering and money put in overseas banks, conduct border cross investigation and extradite suspects to stand trial. "We must always encourage more anti-corruption campaigns at bilateral and multilateral levels," the President said here on Tuesday. Only by establishing international cooperation could the global economy be well prevented from money laundering crimes, bribery be deterred, corrupters be banned from entering other countries, law be upheld, assets be recovered, and whistle blowers be protected, he said. "There are a lot of things we can do," he said. He said the international community must work closely to make corrupters aware that there was no safe place in the world to live in.

BI: Indonesia's Foreign Exchange Reserve Large Enough
Indonesia's foreign exchange reserve reached US$115.8 billion on May 6, large enough to deal with speculations and risks of capital outflows, Darmin Nasution said. "So, overall the foundation of our economy is strong and sound," the governor of Bank Indonesia, the central bank, said when opening a banking exhibition here on Wednesday. He said although there were delays in infrastructure sectors economic growth in the past few days showed improvement compared to that of 2008 during crisis. The economic growth as of 2010 has been more balanced with its resources following increasing exports and investments. "From 2010 to 2011 it was clear the growth is running above 6.5 percent and it is not only in terms of consumption but also investment and exports. Those are the main pillars of economic growth. If they are balanced the economy is healthier," Darmin said.

"International Yacht Race 2011" Promotes RI's Marine Tourism
The "Visit Indonesia Fremantle-Bali International Yacht Race 2011" was an event to promote marine tourism in Indonesia, an official said. "The race was participated in by 23 yachts which started from Fremantle harbor in Australia on April 23, and reached the finish line at Benoa harbor in Bali on Mei 7, 2011," the tourism and culture ministry`s marketing director general, Sapta Nirwandar, said at Hotel Sanur Beach, Bali, Tuesday. The objectives of the Race were among other things to promote the country`s marine tourism, to improve the tourism image internationally and to strengthen the bilateral ties between Indonesia and Australia, he said. "In addition to make the bilateral ties between Indonesia and Australia closer, we also want to foster relations with countries of the race`s participants," he said.

US Warship to Hold Joint Exercise With RI's Eastern Fleet
USS Guardian-5 is currently in Surabaya, East Java, for a joint exercise on mine sweep program with the ranks of the Indonesian Eastern Fleet Command. The arrival of the US warship was welcomed at the Gapura Surya pier here on Tuesday by the operations assistant of the Navy Main Base V, Col. Maman Firmansyah. Also welcoming the ship`s arrival were the commander of the Sea Security Unit of the Navy Main Base V, Lt Col Eko Widiyantho, the chief of the navy port service, Lt Col Didik Dhuwijantoko, and the chief of the intelligence team, Lt Col Yudhi Mardhiyono. "The US warship plans to be in Surabaya until May 16. The mine sweep joint exercise program meanwhile will also involve mine sweeping ships of the Eastern Fleet," Col Maman Firmansyah said. Besides conducting a joint exercise the US ship`s commander and crew had also planned to conduct a series of activities while in the port city including meeting with the Eastern Fleet commander Rear Admiral Bambang Suwarto and the chief of the Navy main Base V, Commodore M Atok Urrahman.

Tuesday, May 10, 2011
RI to Have Good Economic Growth in 2012
PT Bank Muamalat's director for finance affairs Hendiarto has predicted that Indonesia`s economic growth in 2012 would remain good as foreign players would continue to make investment in the domestic market. "We are optimistic that Indonesia is still an attractive place for foreign investment. Moreover, the interest benchmark remains high," he said here on Monday. Hendiarto said the rupiah which continued appreciate to a level far higher than the macro-economic target in the state budget at Rp9,250, indicated that foreign investors` interest in Asian markets, especially in Indonesia, remained high. The value of the rupiah now reached Rp8,550 per US dollar, up from the previously Rp8,575 level. Rupiah is expected to reach Rp8,500 per dollar. He said that foreign players still wanted to invest their big funds in the domestic market because the benefits they could reap were still relatively high.

RI Proposes New Approach For Solving Thai-Cambodian Conflict
Indonesia has proposed a new approach for the solution of the Thai-Cambodian border conflict, Foreign Affairs Minister Marty Natalegawa said here Monday. Speaking to the press after hosting a trilateral meeting with his counterpart from Camdodia, Hor Namhong, and from Thailand, Kasit Piromya, Marty said the three-hour meeting itself was a follow up to a meeting between Indonesian President Susilo Bambang Yudhoyono, Cambodian Prime Minister Hun Sen and Thai Prime Minister Abhisit Vejjajiva last Sunday (May 8) on the sidelines of the 18th ASEAN Summit at the Jakarta Convention Center. "We call the new idea the Package Solution where we no longer ask one country to do one step and then the other country will follow by doing the next step. Instead, we will identify a number of steps or measures that need to be done and put them in little clusters and propose them to both Thailand and Cambodia," the minister said. He said Indonesia had proposed that both countries take synergic steps at the same time without having to discuss again about who`s doing what first.

As ASEAN Summit Ends, RI to Broker Border Talks
As ASEAN concluded its leaders summit in Jakarta on Sunday, association chair Indonesia says it would broker talks on Monday to end Thailand and Cambodia's border dispute. Indonesia will host a meeting between Cambodian Foreign Minister Hor Namhong and his Thai counterpart, Kasit Piromya, in Jakarta on Monday. President Susilo Bambang Yudhoyono, before concluding the two-day summit, met with Thai Prime Minister Abhisit Vejjajiva and Cambodian Prime Minister Hun Sen, both of whom traded barbs over the border row at the summit. Hours later, Abhisit and Hun Sen held separate press conferences that failed to show progress in resolving the dispute. Yudhoyono said that he had offered the prime ministers several solutions, such as establishing a joint border committee meeting to settle the two nations' fundamental disputes peacefully.

JCI Edges Up on Heavy Day of Trading
Gains by one big company and a host of smaller stocks carried the day on the Jakarta Composite Index, which experienced a third day of unusually heavy volume in the past week. More than 10 billion shares worth Rp 5.02 trillion ($587.3 million) changed hands on Tuesday as the JCI rose 15.07 points, or 0.4 percent, to close at 3,800.52. Gainers beat decliners 129 to 94. "Today was mainly driven by the financial sector and shares of Astra International as it has the biggest market capitalization in the Indonesian market," said Frederik Daniel Tanggela, an analyst at Sucorinvest Central Gani. The JCI saw 7.2 billion shares traded on May 4 and 8.2 billion shares traded the next day. Frederik said Tuesday's high volume and the value of the traded shares indicated that stocks with smaller prices were the most active.

News Focus: Aceh Attracting More Foreign Investors
With its strategic location as the gateway for trading and cultural traffic since the past centuries, Aceh province is now becoming an increasingly attractive destination for foreign investors. A lot of investors are now turning their eyes to Aceh, a province with the largest reserves of oil and natural gas, fertilizer, agriculture, and also natural resources that have not yet been exploited. After more than six years of struggle to recover from the December 26, 2004`s devastating tsunami and decades of bloody conflict, Aceh people will see a better future for economic development and investment following a conducive security situation in the province. Aceh Promotion and Investment Board (BIP) spokesman Anwar Muhammad said in the provincial city of Banda Aceh over the weekend that at least 85 foreign private companies have planned to invest in various sectors in the province with a total investment value of Rp50 trillion (US$5.8 billion).

President: Corruption Must Be Fought Systematically
Corruption is a crime that needs to be fought through systematic efforts, President Susilo Bambang Yudhoyono said on his opening speech at the International Conference of Foreign Bribery in Business Transaction 2011 in Nusa Dua, Tuesday. "One of the most important lessons Indonesia has learned in fighting corruption is that the fight must be done systematically. As I said, it is a marathon, not a quick sprint, and it will require perseverance and support from all of us to get us to the finish line," the president said. The president emphasized the need to start eradicating corruption from the grassroots, working laterally to include all the stakeholders at all levels, and working its way to the top, to ensure that the leadership was also involved in combating graft. "Systematic efforts means protecting and nurturing the integrity of the system, reforming the bureaucracy, and making sure the bureaucrats are paid enough, so that they will not seek additional income illegally by being corrupt. Systematic effort also means establishing institutional supervisory controls and independent Ombudsmen, that can spot irregular transactions and act against them without political pressure," said the president.

RI-US Open Energy Investment Roundtable
Indonesian Minister of Energy and Mineral Resources Darwin Zahedy Saleh and US Ambassador Scot Marciel opened the US-Indonesia Energy Investment Roundtable on May 9 in Jakarta. According to a press release from the US Embassy to Indonesia received here, Tuesday, the Roundtable is a joint effort between the US and Indonesian governments that focuses on the private sector`s role in supporting Indonesia?s energy security and climate change goals as part of the bilateral Energy Policy Dialogue and US-Indonesia Comprehensive Partnership. Approximately 200 participants representing US and Indonesian businesses, government, and trade associations attended the one-day conference. The Round-table explored ways in which US and other foreign companies can partner with Indonesia to develop and enhance the country`s renewable energy, oil and gas production, and human development.

Friday, May 6, 2011
Myanmar to Learn From RI's Democratization Experience
Myanmar is interested to learn Indonesia`s experience in developing democracy which is considered successful and smooth involving all parties, Indonesia`s foreign minister Marty Natalegawa said. Marty made the statement at a press conference after accompanying President Susilo Bambang Yudhoyono in a meeting with Myanmar`s President Thein Sein here on Thursday. "Myanmar`s president has shared information with President Yudhoyono regarding the development in Myanmar with regard to the road map to democracy, the recent general elections and the formation of the new government on March 30. His explanation describes efforts in transitional process," he said. Marty said Indonesia had expressed its support and appreciation and had encouraged Myanmar to continue the process including national reconciliation. "With regard to it Indonesia and Myanmar saw facts in Indonesia in the position of sharing the experience with Myanmar regarding the process towards democracy. And therefore in the discussion just now President Sein had expressed openness and hope for experience sharing," he said.

RI Has Potential to Attract 14 Mln Tourists
The Indonesian Tourism Industries Association (GIPI) said Indonesia has the potential to attract 14 million tourists in 2015. "After studying the strategic plan for development of Indonesian tourism we have come to the conclusion that it is not impossible for Indonesia to draw 14 million foreign tourists in 2015," GIPI Chairman Didien Djunaedi said here on Thursday. However, to tap the tourism potentials the government must pay more attention to the tourism sector, he said. "There must be a policy that facilitates the development of the tourism sector," he said. The most important thing was that the government must give incentives to business players engaged in the tourism industry without burdening them with high taxes, he said. Security and infrastructure were also key to the success of luring more tourists, he said.

ASEAN Summit - President: RI To Be One of World's 10 Largest Economies
President Susilo Bambang Yudhoyono has expressed optimism that Indonesia will eventually become one of the world`s ten largest economies. "Indonesia is now the world`s 17th largest economy. But our aim is to be in the top 10. And why wouldn`t we have such optimism, when even the IMF is predicting that Indonesia`s economy will be larger than Australia`s within less than a decade," the head of state said in his opening speech at the ASEAN-European Union (EU) Summit here Thursday. Indonesia`s economy grew by 4.5 percent in 2008, and then 6.1 percent in 2010, while the rest of the world continues to grapple with the repercussions of the global financial crisis, he said. "This year, we expect to grow by around 6.3 percent. And there are even predictions that growth could reach more than 7 percent by 2014," he added. The country`s export is expected to reach close to US$200 billion by this year, or double from $100 billion in 2006, and its reserves stand at over US$ 100 billion, the highest in the nation`s history, according to Yudhoyono, who was speaking before around 400 European and Southeast Asian businessmen.

Indonesia's Coal Output for 2011 Up 14%
Indonesia's coal output is seen climbing this quarter on drier weather before tapering off in the second half, putting full-year production up 14 percent to feed growing Asian demand and cap regional prices. Global coal prices only saw a limited sell-off this week despite a rout in other commodities, and the market's strength is backed up by producers and traders saying rising output from the top thermal coal exporter is being soaked up by India and China. "It's very significant and they are mainly looking for long-term contracts," said Indonesian Coal Mining Association Chairman Bob Kamandanu, referring to fresh demand from Chinese firms. After production of 89 million tonnes during a wet first quarter, Indonesian output is seen picking up to 95 million tonnes this quarter on drier weather and then dipping again to 85 million tonnes in the following two quarters, Kamandanu said.

Boediono Assures Foreign Investors
Vice President Boediono has assured foreign investors about Indonesia's economic strength and stability. The government, he said, was carefully implementing its fiscal and monetary policy. "The vice president said Indonesia would maintain a conservative and prudent macro-economy so the budget deficit will remain low and they are ready to face any turbulence," vice presidential spokesperson Yopie Hidayat said yesterday following Boediono's meeting with Chapman Taylor, the senior vice president of Capital International Research. Capital is a US-based investment management company. Two days ago Boediono also received Michael Hasenstab, Franklin Templeton's senior vice president. Franklin is a US-based investment management company.

News Focus: Maluku to Support RI Tuna Exports to US
Having been declared as a national fish barn, Maluku province is now making every effort to support Indonesia`s tuna fish exports to the United states. The government has declared Maluku as national fish barn because the area has a big fishery potential of 1.64 million tons per year for the prosperity of the province and the nation. Maluku has 600,000 sq km of sea with extensive marine resources for the local people`s prosperity, and to support economic growth. No wonder President Susilo Bambang Yudhoyono at the apex of Sail Banda marine event in Ambon in August last year declared the province as the country`s fish barn for the abundant fishes in its waters. Interestingly, Ambon Mayor Jopi Papilaja said in Ambon early this week that a South Korean company, Japtora, would help manage the Eri fish landing port in the city to support tuna export to the United States.

Economic Growth Slows, Giving BI Room to Hold Rate
Indonesia's economy grew 6.5 percent in the first quarter of 2011 from the same period a year ago amid strong consumer spending, the Central Statistics Agency said on Thursday. The growth was slower than the 6.89 percent year-on-year growth in the fourth quarter of 2010, the fastest pace in six years. Slower government spending early in the year was partly to blame for the drop. "There is little sign here that the economy is becoming overheated. The central bank will be in no hurry to move again after [the consumer price index] fell for three months running," George Worthington, an economist at IFR Markets, said on Thursday. The growth figure was widely expected. A Reuters poll forecast 6.5 percent growth in the quarter, while a Bloomberg News survey of economists predicted 6.58 percent growth.

US Offered Four Investment Sectors
Coordinating Economic Minister Hatta Rajasa, has recommended four investment sectors to American businessmen. This was conveyed after he met with representatives from the Overseas Private Investment Corporation (OPIC) yesterday. The four sectors that Hatta said would encourage economic growth were energy, infrastructure, agriculture technology and manufacturing. Hatta expects that US investment in the four areas will accelerate development, especially in the manufacturing industry. As such, the government hopes the opportunity will be used to accelerate infrastructure development in the provinces.

Newmont Pays Rp 1.36 Trillion in Q1
PT Newmont Nusa Tenggara (NNT) announced Friday that it paid Rp 1.36 trillion (US$158.46 million) to the Indonesian government in the first quarter of 2011 to fulfill its financial obligations for tax, non-tax and royalty payments."NNT always fulfills its financial obligations to the government punctually and complies with all regulations in taxation. Since 2003, NNT always gets the predicate of obedient taxpayer from the government," said the company's spokesperson, Arif Perdana Kusumah, in a press release. The payments comprised Rp 974.4 billion of institutional income tax, Rp 140 billion of othe income tax, Rp 113.6 billion of interest, dividend and royalty tax and Rp 48 billion of individual income tax.

Thursday, May 5, 2011
Indonesia Says Economy Grew 6.50% in First Quarter
Indonesia said Thursday its economy posted robust growth in the first quarter thanks to rising investment, exports and strong domestic consumption. Southeast Asia's largest economy expanded 6.50 percent in the January--March period from a year earlier, and 1.50 percent from the previous quarter, the official Statistics Agency said. This follows growth of 6.90 percent in the October--December period, when the economy usually receives a temporary boost from budget disbursements. "Looking ahead, we expect growth momentum to accelerate to an average pace of 6.40 to 6.80 percent by 2013," Finance Minister Agus Martowardojo said. Speaking at a forum of finance ministers organized by the Asian Development Bank, Martowardojo said Indonesia's economy had gained momentum from domestic demand and favorable global conditions.

ASEAN Summit - Yudhoyono: ASEAN-US Economic, Trade Ties to Increase
President Susilo Bambang Yudhoyono is convinced that ASEAN will have increasingly closer economic and trade relations with the US, citing wide business opportunities between the two entities. The President made the remarks when he acted as a keynote speaker at an Overseas Private Investment Corporation (OPIC) meeting here on Wednesday afternoon. "I appreciate President Obama`s policy to establish closer ties with ASEAN member states. We welcome the US participation in the East Asia Summit," he said. Yudhoyono said the US was the world`s biggest foreign investor. "The US foreign direct investment more than tripled to US$3.5 trillion in 2009 from US$920 billion in 2000. However, 70 percent of the investment is concentrated in developed nations that have high income," he said.

SMEs Should Benefit from EU - ASEAN Partnership: Trade Minister
Trade Minister Mari Elka Pangestu said Wednesday that small to medium enterprises (SMEs) should benefit from a European Union (EU) - Association of Southeast Asian Nations (ASEAN) business partnership at the first EU - ASEAN Business Summit at the Jakarta Convention Center. "The comprehensive partnership between the EU and ASEAN should be innovative, meaning integrating our needs, to boost investment and build our capacity. Indonesia has to maximize it, particularly small to medium enterprises and other sectors with less competitiveness compared to Europe," she said. Mari said that Indonesia had finished a joint-study on the EU - Indonesia partnership to bring it to a comprehensive agreement, while Singapore and Malaysia had already negotiated with the EU. "Some things we hope will come up related to improving economics, investment and trade, business-to-business and government-to-government relations between the EU and ASEAN," she said.

Sumatra Coffee Bean Exports Almost Double
Indonesia's robusta coffee beans exports from the main growing area in southern Sumatra nearly doubled in April compared to the same month a year ago, trade data showed on Thursday. Exporters shipped 23,247.05 tonnes of Sumatran robusta coffee in April, a 90.75 percent surge from 12,187 tonnes in the same month last year. There was no details on the jump in April exports but collectors and farmers in Sumatra had been selling their bean stocks from last year's harvest in the past months to benefit from rallying coffee prices. London's July robusta coffee lost $34 to close at $2,577 per tonne, after hitting a new contract peak of $2,624 during Wednesday's session.

ASEAN Planning to Issue Regional Visa
Indonesian Foreign Minister Marty Natalegawa said stakeholders in ASEAN member countries are starting to design a system for the implementation of an ASEAN visa system for the years to come. He said after accompanying President Susilo Bambang Yudhoyono in a meeting with Myanmar` President Thein Sein here on Thursday he said the procedure was expected to be materialized in 2015 in concurrent with the establishment of ASEAN Community. "It will however take special effort to be able to issue an ASEAN visa because visa regime in each country is different," he said. ASEAN Visa is a system under which a third party namely a citizen from a country outside ASEAN could come to all ASEAN member countries with his visa to be processed only once. "It is like in Europe," he said.

High Volume, Tiny Gain as Indonesia Investors Mull GDP Data
A second-successive day of volatility saw the Jakarta Composite Index make another slight gain, creeping up as data from the Central Statistics Agency showed economic growth slowed in the first quarter. "When the index is at high market value or near a record close, that is when the market will be more sensitive to negative sentiment and have a bigger potential for correction," said Frederik Daniel Tanggela, an analyst with Sucorinvest Central Gani. The JCI rose 1.34 points, or 0.04 percent, to close at 3,816.27. Volume was heavy for a second day, with 8.2 billion shares worth Rp 5.9 trillion ($690.3 million) changing hands. Gainers beat decliners 114 to 112. "As we enter the second quarter, the local market will attract more investors to trade here, as we can see from the rise in the trading volume on the JCI in the past few days," Frederik said.

Indonesia's Growth Slows, Giving Room to Extend Rate-Rise Pause
Indonesia's economic growth slowed last quarter as investment eased, boosting scope to extend a pause in interest-rate increases after inflation moderated. Gross domestic product in Southeast Asia's largest economy rose 6.5 percent in the three months through March from a year earlier, the Central Bureau of Statistics said in Jakarta today. It gained 6.89 percent in the previous quarter, according to previously reported data. The first-quarter number was lower than the 6.58 percent median forecast of 14 economists in a Bloomberg News survey. "Investment wasn't as good as in the fourth quarter last year," Juniman, chief economist at PT Bank Internasional Indonesia in Jakarta, said before the announcement. "Private consumption was the main supporter of economic growth last quarter as inflation eased." President Susilo Bambang Yudhoyono aims to expand the economy at an annual average rate of 6.6 percent, partly by boosting investment in roads, railways and ports. The rupiah's rise against the dollar is the second highest among Asia's 10 most-traded currencies this year, as officials permit gains to restrain price pressures fueled by the growth.

Wednesday, May 4, 2011
Government Wants US Investment To Double in Short Order
Indonesia expects the United States to more than double investment in Southeast Asia's largest economy to capitalize on the stable political climate and growing economic clout. "I expect [US investment] to be steady at between $1 billion and $2 billion per year," Gita Wirjawan, chairman of the Investment Coordinating Board (BKPM), said on Wednesday. "Foreign investment from the United States could double this year and in the years to come to up to $2 billion." Gita was speaking on the sidelines of this year's International Conference of the Overseas Private Investment Corporation in Jakarta. OPIC, an independent US state agency that mobilizes private investment in emerging nations, finishes its two-day conference at the Shangri-La Hotel today. Gita cited US companies that already had their eye on Indonesia, with Coca-Cola to open $500 million bottling plant, while Caterpillar may invest $300 million to $500 million to open a heavy machinery factory.

RI's Industrial Product Exports Grow 34 Pct in Q1
Jakarta - Industrial products served as the main engine of Indonesia`s non-oil/non-gas exports in the first quarter of 2011 when they grew 34 percent compared with the same period last year, Trade Minister Mari Elka Pangestu said. In the first quarter of 2011, industrial products contributed US$28.4 billion to the state coffers compared to US$21.1 billion in the corresponding period last year, she said when disclosing monthly export and import performance at a meeting here on Tuesday. Quoting data from the Central Statistics Agency (BPS), she said industrial products accounted for 62.57 percent of non-oil/non-gas exports in the first quarter of 2011 compared to 59.39 percent in the same period last year. "The increase in industrial product exports is one of the indicators that the domestic industries have begun to recover," she said. Among the industrial products that recorded growth at the start of this year were textiles and textile products, footwear, electronics and automotive products.

Fight Against Terrorism Unaffected by Osama's Death, Marty Says
Jakarta - The fight against terrorism in Indonesia remains unaffected by the death of Osama bin Laden, the world`s most wanted terrorist and leader of terror network Al-Qaeda, Foreign Minister Marty Natalegawa says. Indonesia`s stance on terrorism was clear enough, namely that terrorism is against human rights and therefore a concerted effort to root out terrorism should be attempted to prevail. "We have to increase our alertness, intensify security and fight against crimes and terrorism," the minister told the press after a close look at the media center of the Jakarta Convention Center here on Tuesday. "Whether Osama is dead or alive is not a problem for Indonesia, as our efforts to combat terrorism will continue," Marty said. The death of Osama on Monday was celebrated around the world as a victory for justice, but many people cautioned that it would not end terrorist attacks or ease the suffering of those who lost loved ones in bombings by al-Qaida-linked militants.

Oil Price Turmoil Not to Affect RI Economy: IMF
Jakarta - The International Monetary Fund (IMF) said world oil price fluctuations had not until recently showed any adverse impact on the economic condition of Indonesia, including its economic growth target, an IMF official said. "So far the oil price fluctuations do not give a negative impact to economic growth in Indonesia," IMF Senior Representative in Indonesia, Milan Zavadjil said here on Tuesday. Milan said the oil price fluctuations that occurred at this time had a negative impact on the economic growth of countries such as Malaysia and Australia. The volatility of oil prices has caused a decline in Australia`s economic growth of about 0.1 percent and in Malaysia`s economic growth of about 0.2 percent. The Indonesian government said that the average crude price of Indonesia (Indonesia Crude Price / ICP) from January to March 2011 reached 104.48 US dollars per barrel while the assumption set in the state budget in 2011 was only 80 US dollars per barrel.

JP Morgan Praises RI's Economic Policies
Jakarta - International financial company JP Morgan praised Indonesia`s economic policies that had made the country one of the world`s most attractive investment destinations. "The Indonesian government has worked well and we believe Indonesia has become an attractive place for investment and it will continue to develop," JP Morgan Chase`s Chief Executive Jamie Dimon said to newsmen after meeting with President Susilo Bambang Yudhoyono here on Tuesday. He said he had discussed a number of economic issues with President Yudhoyono in the meeting including investment, energy and development. "We have also been briefed about the Indonesian economic development acceleration program (MP3EI) and hope we can help and be involved in it," he said at a press conference with head of the Capital Investment Coordinating Board (BKPM), Gita Wirjawan. Gita Wirjawan meanwhile said President Yudhoyono in the 30-minute meeting with Dimon had explained about the government`s plan in implementing the program.

Indonesia Set to Propose Three Economic Agendas at ASEAN Summit
Rahmat Pramono, director for Association of Southeast Asian Nations (ASEAN) economic cooperation, said Wednesday that Indonesia was set with its three main economic agendas for the 18th ASEAN Summit that will take place later this week. "Our internal agenda is consolidation on the utilization of Free Trade Agreements [FTA] by local enterprises. According to our data, there are still many small to medium enterprises who don't know how to use and benefit from FTAs," he told The Jakarta Post. According to Rahmat, lack of access to information related to FTAs is one of the common problems faced by most small and medium enterprises. Most of them also consider the requirements that they need to fulfill, such as the "rule of origin", as too complicated. The rule of origin asks for detailed information that is important for export destination countries before letting products in. "It wasn't meant to make things more complicated, but simply to prevent irresponsible parties who want to misuse the FTA," he said, adding that most big enterprises have no problem with this thing because they have a lot of staff to do that. Indonesia is also aiming to encourage the private sector to utilize the FTA.

Dividend Payments This Year Expected to Increase to Rp 30.7 Trillion
Jakarta - The State Enterprises Ministry has hinted dividend payments by state firms to the government this year are likely to increase to Rp30.763 trillion from last year`s Rp27.59 trillion. The dividend payments would consist of cash dividends worth Rp27.590 trillion and interim dividends worth Rp3.173 trillion, State Enterprises Minister Mustafa Abubakar said after closing a workshop on state firms` assets here on Tuesday. The increase in dividend payments included interim dividends, he said. However, he stopped short of revealing which state firms had paid interim dividends amounting to Rp3.173 trillion. The government has set the target of dividend payments from state firms at Rp27.5 trillion for this year, or 8 percent lower than those in 2010. Dividend payments to the government from state firms last year rose to Rp30.09 trillion from Rp29.5 trillion a year earlier.

RI Among the World's Top 10 Remittance Receivers
Indonesia is among the world's top 10 remittance receiving countries in 2010, with the value of remittance sent to the country last year totaling US$7 billion, a global money transfer company executive says. The large number of Indonesian workers overseas has been the main contributor to the high remittance rate, Nick Cunnew, senior regional director for Asia Pacific at US-based MoneyGram International, said Wednesday in Jakarta citing a World Bank report. He said the most remittance came from Malaysia, given the large number of Indonesian migrant workers there, including illegal ones. The next most common destinations for Indonesian migrant workers were Hong Kong, Saudi Arabia and Singapore.

Tuesday, May 3, 2011
President Reaffirms Commitment to Fight Terror
President Susilo Bambang Yudhoyono responded to the death of Al Qaeda leader Osama bin Laden by reaffirming Indonesia`s commitment to fighting against terrorism jointly with the rest of the world. The head of state had heard the news of Osama`s death as announced by US President Barack Obama in Washington DC, on Sunday (May 1), according to Presidential spokesman Julian Aldrin Pasha said here Tuesday. "The President has heard the news of Osama`s death. We also listened to President Obama`s statement on the matter," Julian said. Yudhoyono then reaffirmed Indonesia`s commitment to contribute to the world`s fight against terrorism , he said. "Indonesia has an interest to free itself from the terrorist threats. It would be better if Indonesia can do it together with the rest of the world in freeing ourselves from terrorism," he said. In the context of the universal alertness, Indonesia has always tried to protect the people and anticipate any security disturbances by terrorist groups, he said.

ASEAN Summit - Suu Kyi Admires RI's Democratization Process
Myanmar`s democracy leader Aung San Suu Kyi said she admired the process by which Indonesia had become the democratic country it is today. "You had an admirable transition from authoritarian rule to democratic government. We envy you, we want to be like you. We want to achieve what you have managed to achieve," she said in video-taped remarks during the opening ceremony of the ASEAN Civil Society Conference at the Ciputra Hotel here Tuesday. Suu Kyi said the Myanmar people started their struggle for democracy in 1988, with the aspiration to have the freedom to determine their own destiny. "They wanted to live in a land free from fear, they wanted to live in a nation where they can elect their own government, they wanted a government of the people, for the people, by the people," said the leader of Myanmar`s National League for Democracy. Suu Kyi expressed hope that ASEAN countries would help the Myanmar people in their struggle for democracy and their efforts to strengthen the role of civil society in their country.

President Yudhoyono to Open OPIC Conference
President Susilo Bambang Yudhoyono will open the seventh Overseas Private Investment Corporation (OPIC) international investment conference, Access to Opportunity in Southeast Asia, on May here on Friday, the US Embassy in Jakarta said in its official website on Monday. It said that also speaking at the opening ceremony would be U.S. Ambassador to Indonesia Scot Marciel and OPIC President and CEO Elizabeth Littlefield. President Barack Obama announced the OPIC conference during his November 2010 trip to Indonesia, stating it would "highlight new opportunities for partnership here and across the region." The conference will be held at the Shangri-La Hotel in Jakarta, Indonesia, from May 3 to 5, 2011. Following the model of OPIC`s six previous annual international conferences, the Indonesia conference will connect U.S. and regional investors, financial institutions, private equity managers, local partners, and government officials. Conference sessions will focus on access to investment and trade finance, private equity, infrastructure, tourism and entrepreneurship. Particular emphasis will be placed on the renewable energy and clean technology sectors. OPIC is the U.S. Government`s development finance institution.

ASEAN Governments Need to Involve Civil Society: VP
Indonesia Vice President Boediono said Tuesday that governments in Association of Southeast Asian Nations (ASEAN) member states needed civil society groups in the region to connect governments with their people in order to solidly integrate ASEAN in politics, economy and culture. "To achieve ASEAN integration, we have to continue to interact regularly with the people, and this is where the important role of civil society groups comes in because they actually can do it faster and cheaper," Boediono said during the opening of the ASEAN Civil Society Conference/ASEAN Peoples Forum 2011 in Jakarta. Boediono promised that during the country's leadership, Indonesia would try to connect civil society with ASEAN leaders so voices could be heard. United Nations Ambassador for Millenium Development Goals in Indonesia Erna Witoelar said that civil society groups can be the "rescue team" for poor people in ASEAN countries so their rights would be protected amid economic globalization.

ASEAN Summit - VP: RI Trying to Increase People's Participation in ASEAN
Vice President Boediono on Tuesday stated Indonesia as chairman of ASEAN was trying to increase the role of common people in ASEAN`s activities. The vice president said during the past years ASEAN had been pictured only as a forum for the elite and government officials in Southeast Asia. "Indonesia will try to change the old image by holding more people-centered programs," Boediono said in his opening speech at the 2011 ASEAN Civil Society Conference and ASEAN People`s Forum (ACSC/APF) which is being held May 3-5 at the Ciputra Hotel, Jakarta. The vice president said it was important for the people to have a sense of belonging towards ASEAN. Boediono praised the increasing partnership between ASEAN`s civil society and government officials in recent years. He said he hoped to see more collaboration between the two parties in the future. He said a special mechanism to establish more contacts between people and government in ASEAN was being devised. In relation to the ACSC and APF event in Jakarta, Boediono asked the forum to focus their discussions on common concern themes such as reducing poverty, increasing health services and achieving the MDGs.

Over 598,000 Tourists Visited RI in March
More than 598.1 thousand tourists visited Indonesia in March, up slightly by 0.64 percent from the same month last year, the Central Statistics Agency (BPS) said. "Compared with February 2011, the number of tourist arrivals in March 2011 rose 5.28 percent," BPS Chief Rusman Heriawan said here on Monday. The number of foreign tourists visiting Bali via Ngurah Rai Airport in March increased 5.97 percent to 202.5 thousand from 191.1 thousand in the same month last year, he said. "Compared to February 2011, the number of tourist arrivals in Bali in March rose slightly by 0.54 percent," he said. Cumulatively, the number of foreign tourists visiting Indonesia in the January-March 2011 period reached 1.71 million, a 6.44 percent increase compared to the same period last year, he said. The increase in the number of tourist arrivals occurred in most of the country`s main gateways, with the highest increase of 73.82 percent recorded at Sepinggan airport in Balikpapan, East Kalimantan. This was followed by Husein Sastranegara airport in Bandung, West Java, with 33.22 percent.

Monday, May 2, 2011
Indonesia: Resilient Growth to Continue
Asia, with solid economic growth of 8.3 percent in 2010, continues to drive the global recovery. In the IMF's latest Asia and Pacific Economic Outlook, Asia is projected to grow by about 7 percent in both 2011 and 2012 fueled by robust domestic demand and rising exports. Risks to the growth outlook have become more balanced now than last October, thanks to the strengthened prospects for sustained growth and reduced uncertainties of private domestic demand in advanced economies. Meanwhile, new downside risks have arisen such as the turmoil in the Middle East and North Africa region and the related risk of further spikes in oil prices, greater than expected spillovers from the earthquake-related tragedy in Japan, as well as the underlying fiscal and financial vulnerabilities in several advanced economies.

Manufacturing Production Grows 5.15%
Indonesia's big and medium manufacturing industries' production grew 5.15 percent in the first three months of 2011, according to the National Statistics Bureau (BPS). "It`s quite good because it surpassed 5.0 percent. In the first three months last year it grew only 4.6 percent. That is indeed the pattern namely it is always positive in the first three months as of 2001," BPS chief Rusman Heriawan said here on Monday. Industries that recorded growth in production in the first three months of 2011 include basic metal, electric machinery and equipment, paper and paper products, non-machinery metal products, textiles, leather and leather goods, footwear, motor vehicles and garment. The production of basic metal industries was recorded to rise 26.29 percent, electric machinery and equipment 21.49 percent, paper and paper products 17.31 percent and non-machinery metal products 16.85 percent.

Non-Oil Exports Increase 12.88%
The Central Board of Statistics (BPS) said Indonesia's non-oil commodity exports in March increased 12.88 percent to US$13.32 billion compared with that a month earlier. "If compared with that in the previous year, it also increase by 25.62 percent," BPS Chairman Rusman Heriawan said when he announced the monthly official statistics data here on Monday. He said that the biggest export increase in March 2011 occurred with the rubber commodity group, namely reaching US$201.4 million while the biggest decline happened with the fat and vegetable oil commodity group at US$559.7 million. Most of the non-oil commodity exports in March 2011 were shipped to Japan (1.53 billion dollars), the United States (1.41 billion) and China (1.3 billion). "The exports to the three countries contributed about 31.86 percent to the total non-oil commodity exports," he said.

Rupiah Gains to Seven-Year High as Inflation Expected to Slow
Indonesia's rupiah advanced to a seven-year high before an official report today that economists forecast will show inflation slowed for a third month, easing concern that rising prices will derail the nation's economy. Consumer prices in Southeast Asia's largest economy gained 6.4 percent in April, after increasing 6.65 percent in March, according to the median estimate of 19 economists surveyed by Bloomberg. The Central Bureau of Statistics will release the data around 11 a.m. in Jakarta. "Inflation is no longer a major concern for Indonesia," said Lindawati Susanto, head of treasury at PT Bank Resona Perdania in Jakarta. "The market is expecting inflation may be slower than in previous months. Bank Indonesia will probably hold back from increasing interest rates until the second half of the year." The rupiah strengthened 0.3 percent to 8,543 per dollar as of 8:52 a.m. in Jakarta, the strongest level since March 2004, according to data compiled by Bloomberg. The currency has gained 5.1 percent this year.

Indonesia Inflation Slows in April, Central Bank Seen on Hold
Indonesia's annual inflation slowed further in April as food prices eased, giving the central bank room to leave rates on hold again this month, though economists still expect a hike this quarter as core inflation picks up. Analysts are pushing back or reducing their forecasts for rate hikes by Bank Indonesia this year after the third consecutive month of slower headline annual inflation, which eased to a six-month low of 6.16 percent, below forecasts for 6.37 percent. Core inflation -- which excludes administered prices and volatile foods, but includes gold prices that reached a record high last week -- picked up just ahead of forecasts to 4.62 percent year-on-year.

Indonesian Coffee Promoted in Houston
Indonesia's coffee industries represented by the Association of Indonesian Coffee Exporters (AEKI) and the Indonesian Specialty Coffee Association (AKSI) promoted and marketed Indonesian coffee at the 23rd Exposition and Symposium of Specialty Coffee Association of America (SCAA) in Houston, US, from April 28 to May 1. The event was supported by the Indonesian agriculture ministry, the Indonesian Consulate General (KJRI) in Houston, the Indonesian embassy in Washington, KJRI Chicago and KJRI Los Angeles, Indonesian Consul General in Houston Al Busyra Basnur said in a press statement received by ANTARA here Monday. The SCAA Expo and Symposium, the largest event of coffee specialy industry in US, was participated in by tens of coffee associations, 700 companies and thousands of coffee industry professionals from around 40 countries. During the expo, the Indonesian delegation held several business meetings and reached coffee export deals with US businessmen. The United States is the world`s largest coffee market.

Jakarta to Host The 7th OPIC International Investment Conference
Jakarta will host the Overseas Private Investment Corporation (OPIC) international investment conference, "Access to Opportunity in Southeast Asia", from May 3-5. A release from the US Embassy in Jakarta said Monday that President Susilo Bambang Yudhoyono is expected to open the conference on Wednesday. Also speaking at the opening ceremony will be U.S. Ambassador to Indonesia Scot Marciel and OPIC President and CEO Elizabeth Littlefield. President Barack Obama announced the OPIC conference during his November 2010 trip to Indonesia, stating it would "highlight new opportunities for partnership here and across the region." The conference will be held at the Shangri-La Hotel.

Positive Factor Strengthens Rupiah
The rupiah at the Jakarta interbank spot market strengthened by 20 points against the US dollars due to the continuing positive factor, along with April deflation which has been predicted to re-occur as the previous month. The rupiah strengthened from Rp8,543 per US dollar from last weeks` market which closed at Rp 8,563. According to Bank Saudara analyst, Rully Nova here on Monday that Rupiah is estimated to strengthen at closing to Rp8,500 level per US dollar. Currently, the Rupiah has reached Rp8,500 per US dollar and only a few more steps to be stable in that level, Rully said. The positive factors that caused the rupiah to regain from the first quarter`s eminent performance reports and the estimated deflation in April that triggered market participants to buy the rupiah. The condition is also supported by the US economic data`s positive factors that provide confidence in the US economic improvement.