Wednesday, November 30, 2011
RI Economy to Grow 6.3 Percent in 2011: OECD
An official from the Organization for Economic Cooperation and Development (OECD) predicts Indonesia`s economy will grow by 6.3 percent in 2011. "We predict Indonesia will experience an overall economic growth of 6.3 percent in 2011. This prediction slightly differs from the Indonesian government`s projection of 6.5 percent," OECD Deputy Secretary General Rintaro Tamaki said here on Tuesday. According to the latest OECD report, uncertainties in the global economic situation could overshadow Asia`s economic growth. In other words, developing countries in the Asian region, particularly Indonesia, would not be safe from the negative impacts of the global economic slowdown.

BI Taking Measures to Avoid Global Crisis' Impact
Bank Indonesia (BI) is taking various strategic measures to avoid the impact of the global financial crisis and economic slowdown in developed countries, the bank`s chief said. "Until now the impact of the global economic crisis on the country`s economy is still limited but sooner or later our economy will be affected and it will be seen in our economic performance in 2012," BI Governor Darmin Nasution said here Wednesday. He said among the strategic measures taken by BI included increasing the intensity of monitoring on financial markets as well as on banks` resilience.

East Indonesia Holds Promise for Singaporean Investors
Jakarta has long been the epicenter of business in Indonesia, but by 2025, the new hot spot might be the ancient trading center of Makassar. Makassar is the capital of South Sulawesi in eastern Indonesia, a region that the country plans to develop, said Muhammad Harri Santoso, head of the Indonesian Investment Promotion Center. The port city, also known as Ujung Pandang, is a major hub for this rapidly emerging part of the archipelagic nation. "From January to September this year almost 200 Singaporeans have (approached) my office by e-mail or (in person)... But they know only Jakarta, Batam and Bali. This is very surprising to me," he said.

Apply Bali Concord III in facing SC Sea situation: Marty
Foreign Affairs Minister Marty Natalegawa said the Bali Concord III is expected to serve as a guide for East Asian countries in dealing with the dynamic situation in the South China Sea. "We are aware of the dynamic situation in the South China Sea. However, we must remember that now we have the Bali Concord III that was signed by the heads of state/government during the East Asia Summit last November 19. It will be considered as the basic rules for the signatory countries in acting in the region, so the dynamic situation in the South China Sea is something that we already anticipated," said the minister. Earlier, AFP reported that China had announced it would conduct "routine" naval exercises in the Pacific Ocean, in the week after a major diplomatic campaign by US President Barack Obama to assert the United States as a Pacific power.

Bali Meeting Adds 11 Items to UNESCO's Intangible Heritage List
The 6th Session of the Intergovernmental Committee for the Safeguarding of Intangible Heritage ended in Nusa Dua, Bali, Tuesday. During the week-long meeting (Nov 22-29), 11 items were added to the List of Intangible Heritage in Need of Urgent safeguarding, 19 others were inscribed on the Representative List, and five Best safeguarding Practices were selected, Paris-based UNESCO said in a press statement. The items in need of urgent safeguarding are: Yaokwa (Brazil), Hezhen Yimakan storytelling (China), Saman dance (Indonesia), Traditional skills of building and sailing Iranian Lenj boats in the Persian Gulf (Iran), Naqqali (Iran), Secret society of the Koredugaw (Mali), The Moorish Epic T`heydinn (Mauritania); Folk long song performance technique of Limbe performances (Mongolia), Eshuva, Harakmbut sung prayers (Peru), Al Sadu traditional weaving skills (United Arab Emirates), and Xoan singing of Phu Th? Province (Viet Nam).

US Ambassador Hosts MET Exhibit Featuring Islamic Art
Ambassador Scot Marciel hosted a special DVC event with the New York Metropolitan Art Museum (MET), which took place at high-tech cultural center @america at the Pacific Place Mall. The Ambassador and Indonesian guests celebrated the opening of the MET`s "New Galleries for the Arts of the Arab Lands, Turkey, Iran, Central Asia, and Later South Asia," the US embassy in Jakarta said in a press statement. The program included a video screening of the galleries, remarks by the Director and CEO of the MET Thomas Campbell, presentations by the two MET curators, and a Q&A session. This is the first partnership between the US State Department and the MET.

Tuesday, November 29, 2011
Jakarta Stocks Up Midday Tuesday
Indonesia's stocks rose 1.2 percent on mid-day trading on Tuesday as the US market rallied the night before. The Jakarta Composite Index stood at 3,688.96, up 41.91 points or 1.2 percent at the midday break. Stocks rallied after the US retail statistics showed unexpected increases. Retail sales during Thanksgiving weekend rose by 16.4 percent compared to the same weekend last year. The trend continued on 'Cyber Monday' with purchases up 15 percent. Cyber Monday is traditionally the first Monday after Thanksgiving when employees return to offices and purchase items with their work computers.

RI Banks Considered Able to Withstand Crisis
Indonesian banks will be quite able to withstand the impact of the financial crisis in Europe and the United States because of their good performance, a central bank official said. "The European financial crisis will not affect the performance of national banks. In liquidity terms, national banks` liquidity exposure to European and United States banks amounts to only about Rp100 trillion which is not too big compared with their overall assets," Bank Indonesia (BI/central bank)`s Deputy Governor Muliaman D Hadad said here on Monday. He said that the results of a stress test carried out by BI showed that the impact of the financial crisis in Europe and the United States on national banks was very small. After all, banks` assets, capital and credit commitment were still running well.

Government Reduces Foreign Debts
Coordinating Minister for the Economy Hatta Rajasa says the government will reduce foreign loans. So far, many bilateral and multilateral debts have not been utilized optimally. According to data from the National Development Planning Agency, between 2007-2010, only 62-67 percent of foreign debts were absorbed. This means the cost of money (commitment fees) has not matched the expected result. "That doesn't mean that debts are bad. Debts are important if they're used properly because they will help our development," Hatta said yesterday, adding that debt management was crucial.

News Focus: RI Optimistic to Surpass One Billion Tree Target
All regions in Indonesia simultaneously planted thousands of trees to mark Indonesian Tree Planting Day and National Planting Month led by President Susilo Bambang Yudhoyono at Merah Putih Hill, Sentul, Citeureup, Bogor, West Java Province, on Monday (Nov 28). The presidential tree planting ceremony was the signal for the simultaneous execution of the same activity by at least 8,820 people including servicemen and police officers, boy and girl scouts, and students. Indonesia has set a target of planting one billion trees under a program called "One Billion Indonesian Trees for The World" (OBIT ) being implemented to help reduce greenhouse gases.

President Asks Other Countries to Reject Illegal RI Logs
President Susilo Bambang Yudhoyono here Monday called on other countries not become "fences" of illegal logs from Indonesia. "Other nations should not become fences of illegal logs from Indonesia," the head of state said here on Monday at an event to mark Indonesia`s Tree Planting Day and National Planting Month at Merah Putih Hill, Sentul, Citeureup, Bogor. In a teleconference dialog with an audience in East Kalimantan, the President said Indonesia was actively trying to eradicate illegal logging activity in order to protect and preserve its forests.

UNESCO to Consider Bali's World Heritage Nominees in 2012
The United Nations Educational, Scientific, and Cultural Organization (UNESCO) will consider four sites proposed by Bali Province to be included in the World Heritage list in May 2012, a local Balinese official said. "Representatives of countries sitting in the UNESCO Committee will decide whether the four places nominated by Bali can be recognized as World Heritage Sites," Ketut Suastika, the head of the Bali provincial tourism office, said here on Tuesday. In October 2011, a International Council on Monuments and Sites(ICOMOS)`team led by Augusto Villanonhad visited Ulundanu Batur Temple in Bangli District, Pakerisan River Basin Area in Gianyar District, Taman Ayun Temple in Badung Disrict, and Catur Angga Batukaru in Tabanan District for an evaluation as nominees of the World Heritage Sites.

Increasing Energy Demands Will Force Indonesia to Use Nuclear Power: Minister
Indonesia's growing energy needs make the building of nuclear power plants unavoidable in the long term, a senior government official said on Monday. "In the future, whether we like it or not, nuclear power has to be added [to the energy mix] because it's cheap and reliable," said Dahlan Iskan, the minister for state enterprises. He was speaking at an energy policy seminar at the House of Representatives. Referring to the Fukushima nuclear disaster following the massive March tsunami in Japan, Dahlan said it was important to note that technology continued to evolve.

Garuda Contingent Concludes Mission in Lebanon
Indonesian military forces in Garuda Contingent Yonmek Task Force (Konga) XXIII-E/UNIFIL, or Indonesian Battalion (INDOBATT), has concluded its peacekeeping mission in Southern Lebanon for a year. INDOBATT information officer Major Kusworo said from Lebanon Tuesday that the conclusion of the mission in Lebanon was marked with a transfer of authority in Adshit Al Qusayr, Southern Lebanon, on Tuesday. In the military ceremony commander of Konga XXIII-E/UNIFIL Lt Col Hendy Antariksa handed over the tasks, authority and responsibilities to commander of Konga XXIII-F/UNIFIL Lt Col Suharto Sudarsono.

'Amazing to be in Indonesia,' Says Beckham
Global soccer star, David Robert Joseph Beckham, says he does not underestimate teams in the Indonesian Selection. He and his team from the Los Angeles Galaxy, the US, are determined to give their best and win the competition, which will be held on Wednesday at Gelora Bung Karno Stadium in Jakarta, he said. "I want to win the competition," said Beckham in the press conference at the Ritz-Carlton in Kuningan, Jakarta, yesterday. Beckham arrived at Soekarno-Hatta Airport yesterday and went straight to the Ritz-Carlton hotel.

Monday, November 28, 2011
Indonesia's Economy to Be in World's Top Six in 2030: Standard Chartered
People migrating from the countryside to cities, a rising middle class and abundant natural resources are three key factors that could make Indonesia one of the world's 10 largest economies in 2020 and among the top six in 2030, Standard Chartered said in a report last week. Indonesia's economic growth since the 1997-98 Asian financial crisis "has often been overshadowed by the rise of China and India," the British bank said in a special economic report on Indonesia. "However, given its track record in recent years and the large size of its population, we believe Indonesia deserves a prominent place on the radar screen of international corporates and investors."

Bullish Citigroup See JCI Hitting 4,450 Mark by 2012
Citigroup sees Indonesia's benchmark stock index rising as high as 4,450 by the end of next year, on the back of strong growth in corporate earnings and the nation's economy, and its resilience in the global financial crisis. Citigroup's forecast for the Jakarta Composite Index represents a 22 percent gain from Monday's close of 3,647.05. The index has fallen 1.5 percent this year. Indonesian earnings in 2012 "could surprise on the upside given expectations of strong economic growth and more defensive economy," said the report, which was dated on Friday. It was written partly by Citigroup analysts Ferry Wong and Steve Wirawan.

BI: Forex Reserves Enough to Deal with Rupiah Depreciation
A central bank official said Indonesia has enough foreign exchange reserves to deal with the possibility of rupiah depreciation against the US dollar. "The foreign currency reserves at present reach US$114 billion which is quite secure to deal various possibilities in the future," Bank Indonesia's director for economic research and monetary policy Perry Warjiyo said here on Saturday. He said BI continued with its measures to overcome volatility in the exchange rate of the country`s rupiah currency including stabilizing financial market, buying government bonds from foreign investors and pushing the real sector to move.

BI: RI's 2012 Economic Growth to Come from Domestic Sources
An Indonesian central bank official said the country's economic growth in 2012 would no longer come from foreign but domestic sources. "It is important now to take safety measures at home to anticipate the impact of uncertainty in 2012," Bank Indonesia`s director for economic research and monetary policy Perry Warjiyo said here on Saturday. He said this year Indonesia could still rely on sources of growth from abroad through foreign capital inflows as the impact of the crisis was not yet significant. "What needs to be done now is shifting sources of growth which are used to be from abroad to home to avoid the negative impact (of the crisis)," he said at a discussion on global economic crisis.

North Maluku to Attract Raja Ampat Visiting Tourists
A number of districts in North Maluku will make every effort to attract tourists who visit Raja Ampat islands in West Papua province, an official said. North Halmahera district Cultural and Tourism Office spokesman J Papilaya said here on Sunday that his office would open a travel package with Raja Ampat - Morotai - Tobelo route for the tourists in Raja Ampat to also visit the districts in North Maluku. North Maluku Province has 7 districts namely West Halmahera, Central Halmahere, East Halmahera, South Halmahera, North Halmahera, Sula Islands, and Morotai, each with beautiful tourist attractions.

Bank Indonesia to Give Certification for Micro-Businesses
The banking or financial institutions sometimes sell micro-businesses short or, more often than not, the financing institutions choose the wrong businesses to finance and end up burdened with unprofitable ones. On the other hand, many banks are aggressively financing micro-businesses because the banks lose their corporate customers. "Bank Danamon and BTPN, for instance, are actively expanding to the micro-businesses," said Bank Indonesia spokesman Difi Johansyah last week in Salatiga, Central Java.

Nuclear Power Plant for Future Energy Demand: Minister
To meet the growing energy needs, nuclear power plant is considered the most viable energy source in the future. "Witnessing the growing energy demands, I approve the construction of nuclear power plants with 200 kilowatts (Kw) capacity," said the State`s Owned Enterprise (SOE) Minister Dahlan Iskan, here Monday. Nuclear power plant plan has created a controversy amid the Indonesian people itself, but after observing the tragedy at Japan`s Fukushima power plant, the construction can be resumed. Fukushima nuclear leak tragedy after the country was hit by a major earth quake and tsunami but did not cause any casualties, he said.

Wednesday, November 23, 2011
Rupiah Strengthens 15 Points on Wednesday's Opening
The Indonesian rupiah exchange rate to the US dollar strengthened 15 points while still being overshadowed by negative sentiments from Europe and the U.S. The rupiah exchange rate in Jakarta interbank transactions on Wednesday morning moves up 15 points to Rp9.025 from the previous day`s Rp9.040. "The rupiah against the US dollar regained some strength this morning, as investors cut the US currency`s short position," Monex Investindo money market analyst John Ginting said here on Wednesday.

US to Provide US$450 Million for Environmental Cooperation With RI
The United States government recently pledged to set aside US$450 million for environmental and climate change cooperation with Indonesia, its envoy to Indonesia Scot Marciel said here on Tuesday. "Basically the US has made a commitment to assist Indonesia in achieving its target in tackling the impacts of climate change, reduce gas emissions and implementing other environment-related projects," said the ambassador. Marciel said the funds would be used to finance projects such as promotion of environmentally sustainable economic growth, strengthen climate change policy, conserve tropical forests, protect coastal communities and fisheries, move forward on the Low Emission Development Strategies (SOLUSI) project and improve air quality.

Diplomacy Solves Border Crossing Issues: Foreign Office
Diplomatic facility director of the foreign ministry Wiwit Wirsatyo said border crossing problems are normally solved by diplomacy. "Diplomatic ways as these are normally resorted in border crossing problems. We have a high respect of a country`s sovereignty," Wiwit said after an integrated familiarization of the 1961 and 1963 Viennese Conferences on the application of diplomatic facilities, protocols and diplomatic security at Aryaduta hotel here on Tuesday. Wiwit when asked on the possibility of border crossing problems of the traffic of goods and people between North Sulawesi and the Philippines said in case of such problems diplomatic means are always resorted to as well as other forums to solve the issues.

RI to Get $400M Loan from World Bank for Reform Agendas
The World Bank has committed to channel the eighth development policy loan (DPL) worth US$400 million to support Indonesia's three reform priorities: improving investment climate, strengthening public budget management and enhancing poverty alleviation. "Indonesia's main challenge right now is not so much the design of appropriate policies or the raising of financing, but rather strengthening the institutions in charge of implementing those policies in order to enhance their developmental impact," the bank said in a press statement released on Wednesday. To improve investment climate, a dedicated team has been established under the trade ministry to formulate non-tariff measures that are designed in a transparent way, meet their objectives and are consistent with international trade agreements.

Vice President Underlines the Need to Preserve Functions of Forests
Vice President Boediono underlined the importance of preserving the function of forests in restoring ecological balance and provide added value for the welfare of people. He made the statement in Jakarta Tuesday when addressing this year`s fifth Indonesian Forestry Congress that the utilization of forests in Indonesia needs to prioritize the principle of sustainability, by still prioritizing its functions. "It is not that the forests must not be used, its need to be used sustainably," the vice president said in the congress attended by Forestry Minister Zulkifli Hasan and Agriculture Ministry Suswono.

Tuesday, November 22, 2011
Indonesia Most Resilient to Global Economic Crisis Risk: Fitch
Thailand and Malaysia would be the most at risk among Asia's developing countries if there were a sharp deterioration in the global economy, Fitch ratings agency said on Tuesday. Indonesia is the least exposed and has a larger capacity to bring in stimulus measures should the world economy tumble sharply, analysts from the credit ratings firm said. "Both Malaysia and Thailand look highly exposed and have constrained room for policy stimulus," said Fitch analyst Philip McNicholas, citing high debt levels relative to gross domestic product. Due to its large domestic economy and its low debt-to-GDP ratio, Indonesia "is relatively the least exposed in the region," he said.

RI's Export Resilience Remains Strong: Deputy Minister
Indonesia's export resilience remains strong as dependence on Europe and the US has far declined from the level ten years ago, Deputy Trade Minister Bayun Krisnamurthi said here on Tuesday. He said the trade ministry would therefore continue to boost and at the same time maintain exports. He made the statement when opening the East Indonesian Region Export Forum. Bayu said global economy was still uncertain due to a protracted crisis. He said European countries and the US are still facing domestic problems and therefore the world markets are facing a slowdonw and hard times.

News Focus: ASEAN Leaders Reiterate Commitment to Supporting Palestine
A few United Nations Security Council members may try to block Palestine's bid for full UN membership but ASEAN leaders are determined to continue giving their support to Palestine. The ASEAN Leaders` support was expressed in the ASEAN Chair`s statement issued during the 19th ASEAN Summit in Nusa Dua, Bali on November 18, 2011. "We reiterate our support for the capacity-building of the state institutions of Palestine and we also support Palestine`s wish to be a full member of the United Nations," the ASEAN leaders said in the statement`s 152nd point. The Statement was agreed on by President Susilo Bambang Yudhoyono as the ASEAN Chair, Sultan Hassanal Bolkiah of Brunei Darussalam, Prime Minister Hun Sen of Cambodia, Prime Minister Nguyen Tan Dung of Vietnam, Prime Minister Thingsing Thammavong of Laos, Prime Minister Najib Razak of Malaysia, President Thein Sein of Myanmar, President Aquino III of the Philippines, Prime Minister Lee Hsien Long of Singapore, and Prime Minister Yingluck Shinawatra of Thailand.

Creative Economy Development to Also Spur Tourism Industry
Development of a region`s creative economy is believed to also spur its tourism industry, Gorontalo tourism businesses player Meilinda L Modjo said here on Tuesday. Speaking at an event as part of a Tourism Business Mentoring Program, organized by Gorontalo`s Transportation and Tourism office, Meilinda said progress in the tourism industry was closely related with progress in the creative economy. "Collaboration between tourism and the creative economy can result in the creation of more competitive and innovative industrial products at local, national, and even international levels," she said.

RI Economy to Face Three Challenges in 2012: BI
Indonesia should take steps to anticipate three crucial conditions and challenges the national economy will meet in 2012, the central bank (BI) governor said. BI Governor Darmin Nasution said at the House of Representatives (DPR) here on Tuesday the first challenge the country`s economy would face next year was the possible impact of a worsening of the United States and European financial crisis. Indonesia must anticipate the implications of global economic downturns for its economic growth, he said. "The second challenge is the big volume of capital inflow while there are disparities in the policies of the advanced and developing countries," the said.

Government Signs 11 Oil and Gas Contracts
The Energy and Mineral Resources Ministry yesterday agreed to sign 11 oil and gas contracts between the Oil & Gas Upstream Executing Body (BP Migas) and contractors. "We signed these to accelerate and encourage oil and gas production and development," said Energy and Mineral Resources Minister Jero Wacik. The 11 contracts included the work areas of Arguni I, won by Eni Arguni I; East Jabung (Pan Orient Energy East Jabung); Ranau (Prabu Energy); Northeast Madura (Techwin Energy Northeast Madura), West Tanjung (MRI Energy), Belayan (Geraldo Energy), East Simenggaris (Sonlaw United), Babar Selaru (Inpex Banda Sea), Semai IV (Murphy Semai IV), North Ganal (Nika Resources Consortium) and Obi (Niko Resources Consortium).

Deployment of US Marines Nothing to Do With Papua
Indonesian Military Commander Admiral Agus Suhartono said the plan to place US 2,500 marines in Darwin, Australia, has nothing to do with Papua and will not affect Indonesia`s sovereignty because the marines are mainly dealing with natural disasters. "It has nothing to do with the security situation in Papua, nor to control Freeport," Admiral Agus Suhartono said after closing the 2011 Panglima Cup shooting competition at the Army`s Reserve Command (Konstrad) complex in Cilodong, Depok, West Java Monday. He said the deployment of the US marines follows the withdrawal of the marines from several countries in the Middle East and Asia, and to assist ASEAN countries in overcoming natural disast

Monday, November 21, 2011
Indonesian Customer Confidence Remains Strong, October Survey Shows
Indonesian consumers have been little affected by the global slowdown and are still bullish about future economic prospects, a survey by the Indonesian Chamber of Commerce and Industry and Roy Morgan Research showed. The survey indicated that the consumer confidence index hit a record high in October, edging up 0.5 points to 147.3 from a month earlier. Suryo Bambang Sulisto, chairman of the chamber known as Kadin, said the survey reflected how consumers here have so far evaded the major effects of the crisis and that foreign investors view the country as attractive destination for businesses. "We had that Boeing deal announcement last week about Lion Air's record order of 230 Boeing 737 aircraft," Suryo said. "It is such confidence [over the nation's economy] that needs to be grown. This optimism seems to be sustainable."

Indonesia Not in a Hurry to Join TPP: President
Indonesian President Susilo Bambang Yudhoyono said Indonesia would not as yet join the Trans Pacific Partnership free trade cooperation (TPP) scheme initiated by the US. "If I were asked about Indonesia`s position, I will say we choose not to be in a hurry to join the TPP," he said at a press conference at the end of the 19th ASEAN Summit and the 6th East Asia Summit here on Saturday. He said the TPP issue was discussed intensively at recent world meetings such as the APEC Summit in Honolulu and the G-20 meeting in France but not at the ASEAN Summit, the ASEAN Plus Summit and the East Asia Summit here in Bali.

Newmont's Miners to Get Rp27 Million in Compensation
All miners at PT Newmont Nusa Tenggara will recieve Rp27 million in resolution money for the overtime dispute that the workers have demanded since 2010. PT Newmont will also bear the lawyer's success fee of Rp 8 billion. Chemical Workers Union chief Muhammad Sahril, said the Rp27 million would be given to 3,000 non-staff workers who initially demanded Rp40 million, or a total of Rp126 billion. "This is a win-win solution," he told Tempo yesterday. He said the agreement was made by PT Newmont's operation general manager David Liley, Muhammad Sahril and the Mining Workers Union head Iwan Setiawan.

Tourism Islands to Get Rp 210T For Development
The government announced it would allocate Rp 210 trillion ($23.3 billion) toward economic development in eastern Indonesia. Tourism and Creative Economy Minister Mari Elka Pangestu, who is also the coordinator of the master plan to accelerate development in the country's Economic Corridor V (Bali and Nusa Tenggara), said on Sunday in Denpasar that the money would be spent on 136 projects in the area. The tourism sector, which Mari singled out as a main driver for growth in eastern Indonesia, would receive 28 percent of the investment, she said, mainly through infrastructure projects. "Investing heavily in infrastructure will allow us to rapidly develop tourism," Mari said, adding that the government aimed to increase tourist arrivals to 8 million next year from 7.7 million this year.

AUSAID Assists Food Security Program in NTT
Australia's Agency for International Development (AusAID) will grant A$5 million to support a food security program in East Nusa Tenggara (NTT), Provincial Planning and Development Agency spokesman Wayan Darmawan said here on Monday. Wayan said the food security program that will be integrated with the "Anggur Merah" Independent Village program which was declared by Governor Frans Lebu Raya on December 20, 2010. According to him the local government and the people were from year to year experiencing food insecurity because of harvest failrues as a result of climate change.

Friday, November 18, 2011
Obama Respects Yudhoyono's Policies on Papua
US President Barack Obama has assured President Susilo Bambang Yudhoyono that Washington respects the policies the latter is pursuing in handling the problems in Papua, a spokesman for the Indonesian leader said. The security situation in Papua that had been heating up recently was one of the topics of a meeting between the two leaders on the sidelines of the 19h ASEAN Summit here on Friday. Presidential spokesman Teuku Faizasyah who was present at the meeting said Obama listened carefully to President Yudhoyono`s explanations on the Indonesian central government`s policies on Papua. He said Obama on the occasion also reiterated the US government`s support for the territorial integrity of the Unitary State of Indonesia.

RI, US Agree on $600 Mln Cooperation Project
Indonesia and the United States have agreed on a US$600 million cooperation project under a so-called "Millennium Challenge Corporation Compact" in support of environmentally friendly and sustainable development in the former. Indonesian President Susilo Bambang Yudhoyono and US President Barack Obama announced the agreement in a joint statement to the press following their bilateral meeting at the Bali Nusa Dua Convention Center (BNDCC) here on Friday. "Indonesia is thankful to the US for the Millennium Comprehensive Partnership worth US$600 million to support environmentally friendly development," President Yudhoyono said. The cooperation was designed to assist Indonesia in developing clean energy, food and public health programs as well as in modernizing goods and service procurement process.

RI Manages to Reduce 8,989 Metric Tons of CFC
Indonesia managed to reduce 8,989 metric tons of the destructive ozone chemical layer (CFC) since the end of 2007 two years ahead of the target and therefore believed to host the international ozone conference in Bali on November 22, 2011. "Since December 2007 Indonesia managed to reduce the Ozone Destructive Material (BPO). Indonesia has never become the producer, if there are at present still illegal CFC supplies," Deputy Environmental Damage Control and Climate Change of the Environment Ministry Arief Yuwono said here on Thursday. In appreciation for the BPO reduction, Indonesia received a grant of 12 million US dollars for the 2011-2018 period to be provided to all industries or business players with a commitment to reduce BPO.

ASEAN Summit - Obama Praises Boeing-Lion Air Deal
US President Barack Obama has hailed a commercial agreement between Boeing and Lion Air, and described it as an example of a win-win situation. "And so I want, first of all, to congratulate Lion Air for their incredible success. I want to congratulate Boeing for making outstanding planes, including the one that I fly on," Obama said in a statement released by the White House here on Friday. The people of the region would be able to benefit from an outstanding airline, and American workers would be able to have job security and produce an outstanding product made in America, he said.

Indonesia Stresses Maritime Security at Summit
Indonesia's President Susilo Bambang Yudhoyono on Friday stressed the importance of safety and stability in the strategically vital South China Sea, as he opened an ASEAN summit with China. A territorial dispute over the strategic region is expected to dominate talks on the Indonesian island of Bali over the next two days, attended by the United States and China, who have already wrangled over the issue. Four members of the Association of Southeast Asian Nations (ASEAN) have competing claims over parts of the sea, while China claims it all, as does Taiwan, and there have been a number of incidents there this year.

ASEAN: The World's New Center of Gravity Amid the US-China Rivalry?
For the third time in ASEAN's history, Bali has been chosen as the place for ASEAN members to enhance the cooperation among themselves and their key partners. During the coming week, ASEAN will try to revitalize what has been gained in order to achieve the so-called ASEAN Community by 2015. As one of the leading regional organizations in the world, ASEAN has been deemed one of the more stable and peaceful regions compared to others. Designed during the height of the Cold War, ASEAN was not rendered more relevant in every change taking place among the international political constellations. ASEAN's crowning achievement is that in 44 years it has successfully prevented open warfare among its members and resolved various kinds of conflict and clashes in a peaceful manner. Nevertheless, there have been many hiccups along its journey to preserve regional peace and stability. Indeed, Southeast Asia cannot avoid its vulnerability to interstate conflicts; but, ASEAN always attempts to find a win-win solution for all conflict parties.

ASEAN Gives Myanmar Nod for 2014 Chairmanship
ASEAN leaders decided on Thursday to make Myanmar the ASEAN chair in 2014, a decision welcomed by the opposition party led by the country's democracy icon, Aung San Suu Kyi. US President Barack Obama, however, expressed concerns over human rights problems in the military-dominated country. "The decision has been made. It is now formal, and we all anticipate and we all will be looking at how the preparation of the chairmanship will be undertaken by Myanmar," Indonesian Foreign Minister Marty Natalegawa told a press briefing after the closing of the summit. He said the necessary preparations went far beyond physical infrastructure, and included the approach the country would take to its role as chair nation.

Obama Hails Trade Deal on Day of Asian Diplomacy
Promoting American trade, President Barack Obama on Friday presided over a deal that will send Boeing plans to an Indonesian company and create jobs back home, underscoring the value of the lucrative Asia-Pacific market to a president needing some good economic news. Obama stood watch as executives of Boeing and Lion Air, a private carrier in Indonesia, signed a deal that amounts to Boeing's largest commercial plane order. Lion Air ordered 230 airplanes, and the White House said it would support tens of thousands of jobs in the US. The US president, eager for results to show for his diplomacy here, called the move "a remarkable example of the trade, commercial and investment opportunities that exist in the Asia Pacific." Jobs and the state of the economy are defining Obama's re-election bid.

Thursday, November 17, 2011
Government Offers US$1 Billion Global Shariah Bonds
The Indonesian government through a special purpose company will issue US$1 billion worth of shariah bonds denominated in the US dollar for a seven year term. The director general of debt management of the ministry of finance, Rahmat Waluyanto, said here on Tuesday the government offered a four percent yield on the bond. "This will be the second global sukuk (Islamic bond) issued after the one in 2009 with a yield of 8.8 percent and a term of five years," he said. He believed the second issuance of the bond would be successful as Indonesia is rated BB+ by S$P`s, Ba1 by Moody`s and BB+ by Fitch.

Government Believes Economy to Grow 6.7 Pct Next Year
A national development planning official has expressed the government's belief that Indonesia's economy in 2012 will grow 6.7 percent and its inflation rate can be kept down at 5.3 percent. "The economic growth rate forecast of 6.7 percent and the inflation rate projection of 5.3 percent are based on the assumption that the global economy will slow down but not at an extraordinary pace while Asia`s economic growth will remain high," Bambang Prijambodo, director of Macro Planning at the National Development Planning Agency (Bappenas), said here on Thursday. The projected economic growth and inflation rate were also based on the assumption that there would be no extraordinary economic turmoil. If it happened it could be dealt with by increasing domestic consumption, he said.

RI Leads ASEAN to More Peaceful, Prosperous Future
The year 2011 will be remembered as a turning point in ASEAN maturity as an integrated grouping of countries while boosting its standing as a prominent voice in helping resolve regional and global problems. In showing its leadership, Indonesia, Southeast Asia's biggest economy, decided last year that it should seize the momentum to take the ASEAN chairmanship this year rather than wait for its turn by rotation in 2013. "So much will happen in two years. We don't want to lose the momentum to shape the region and show our leadership," Foreign Minister Marty Natalegawa said just after taking the chairmanship from Vietnam in December last year.

News Focus: Government to Step Up Socio-Economic Approach Toward Papua
Poverty and perceived injustices are believed to be among the problems triggering violence from time to time in Indonesia`s eastern most provinces of Papua and West Papua, which are resource-rich regions but among the least developed ones. Eight years since the special autonomy status was given to Papua, poverty and backwardness still linger on until today. Under Law No 21 of 2001 on Special Autonomy for Papua Province, the province is entitled to special funds equal to two percent of the national general allocation fund (DAU) ceiling, which is granted for a period of 20 years. Coordinating Minister for Economic Affairs Hatta Rajasa reportedly said last year that until 2010, the government had allocated state budget funds amounting to Rp 22 trillion for Papua and West Papua - which is the highest state budget allocation compared to similar funds for the country`s other regions.

Leaders Advised Not Become Passive Onlookers Amid World Devel
President Susilo Bambang Yudhoyono called on the leaders of ASEAN member countries not to be passive onlookers in the midst of the dynamic developments in world politics and the global economy. "ASEAN should stand in the vanguard in facing the various existing challenges. Hence ASEAN should not let itself be a passive onlooker who can easily become a victim of problems confronting countries in other parts of the world," the president said at the 19th ASEAN Summit in Nusa Dua, Bali, on Thursday. The head of state said five points needed to be taken into account by ASEAN at present and in the future. The first point had to do with concrete step to strengthen the pillars of the ASEAN community in a balanced and mutual manner prior to 2015.

Indonesia's Lion Air to Buy 230 New Boeing 737s in $21.7B Deal
Indonesia's Lion Air has agreed to buy 230 Boeing 737 aircraft with a list price of $21.7 billion, the White House said on Thursday, touting the sale as the US firm's biggest-ever commercial order. The deal was announced soon after President Barack Obama touched down in Bali for the East Asia summit on the final leg of a regional tour partly aimed at drumming up markets for US products at a time of slow growth back home. The White House also highlighted other deals, some already announced, including the sale of eight Boeing 777 planes to Singapore Airlines and an order for Sikorsky Black Hawk helicopters by Brunei's Ministry of Defense. Officials said the Lion Air order was for 201 Boeing 737MAX aircraft and 29 Next Generation 737ER planes.

In Bali for Summitry, Obama Announces Trade Deals
Tightening ties with Asian nations as China's might rises, President Barack Obama prepared Thursday to be the first US president to take part in a summit of East Asian nations. Ahead of his diplomatic efforts here, the White House announced trade deals to show progress on the jobs front back home. Security issues and the US vision for an increasingly robust American role in Asia are expected to be central themes for Obama's participation in the East Asia Summit in Bali. But concerns over China may shadow the president's meetings Friday and Saturday with leaders of smaller Asian nations increasingly alarmed over China's claims to maritime passage and rich oil reserves in the South China Sea.

RI Not Ready to Join Trans Pacific Partnership: Minister
Indonesia is not ready yet to join the Trans Pacific Partnership (TPP) free trade cooperation, Trade Minister Gita Wirjawan said. "We have already stated that Indonesia is not yet ready and it needs time to be able to join it," he said on the sidelines of the Preparatory Meeting of ASEAN Economic Ministers Meeting (Prep-AEM) of the 19th ASEAN Summit here on Wednesday. Gita said Indonesia could not as yet measure if the TPP would benefit the country. He said the government would not rush to join the TPP as it had to study it first and communicate it intensively with other ministries concerned.

Grouping Not Disturbed by US Troops Deployment in Australia
Indonesian Foreign Minister Marty Natalegawa said ASEAN member countries are not disturbed nor do they feel threatened by the US decision to deploy around 2,500 troops in Darwin, Australia. "This must not be seen as something disturbing," he said to newsmen at the venue of the 19th ASEAN Summit. He said the stand of the US and Australia also must not be seen as a threat to peace in the Southeast Asian region. ASEAN will soon issue the Bali Principles which according to Marty contain something like an agreement on how ASEAN member countries and their partners will conduct themselves to create a peaceful atmosphere in the region.

Wednesday, November 16, 2011
BI Optimistic National Economy to Remain Strong in 2012
Bank Indonesia (BI or the central bank) is optimistic the national economy will remain strong in 2012 despite economic uncertainties caused by current global economic crisis. The central bank`s director of the Directorate of Economic Research and Monetary Policy, Perry Warjiyo, said in a seminar here on Tuesday "Bank Indonesia views Indonesia`s economic growth would remain strong despite strong worries over the world`s economic prospects." In 2011 the country`s economy is projected to grow 6.5 percent and 6.6 percent in the fourth quarter. Meanwhile in 2012 it is expected to grow between 6.3 and 6.7 percent.

RI Inflation in 2011 Four Percent
Bank Indonesia (BI/the central bank) has predicted that the inflation at the end of 2011 would be recorded at four percent, or at the lower limit of BI`s previous estimate at 4 to 6 percent. "The inflation rate this year can be four percent while that in 2012 is estimated at 4.7 percent," BI chief researcher for economic and monetary policy Perry Warjiyo said here on Tuesday. He made the remark in a seminar on the impact of the global economic uncertainties on the Indonesian economy. The inflation is low because of the drop in the prices of world commodities and the smooth distribution of food supply. This is reflected in the October inflation which experienced a 0.12 percent deflation where the year-on-year inflation was thus recorded at 4.46 percent.

Foreign Ministers Issue Three Recommendations on Myanmar
Foreign Minister Marty Natalegawa said ASEAN foreign ministers have issued three recommendations to ASEAN leaders in connection with Myanmar`s bid for the association`s chairmanship in 2014. The first recommendation was that ASEAN foreign ministers warmly welcomed significant positive progress made by Myanmar since early this year, Marty said at a press conference at Bali Nusa Dua Convention Center (BNDCC) on Wednesday night following a meeting of the ASEAN Coordination Council. He said the second recommendation was that ASEAN foreign ministers underscored the need for Myanmar to maintain and follow up the current momentum in the country.

Foreign Investment Should Remain Strong Next Year: Government
The government is sticking to its projection that realized investment growth in the country will be steady at 15 percent next year despite concerns that the euro zone debt crisis will disrupt capital inflow to the region. Total investment - including foreign and domestic direct investment - is expected to reach $26.5 billion next year, said Gita Wirjawan, the trade minister who is also the head of the Investment Coordinating Board (BKPM). For this year, the board had predicted investment to grow 15 percent to $23 billion. "Yes, I think there is concern about the euro zone. But next year I think we can still grow by 15 percent," Gita said on the sidelines of the Asean Investment Forum in Nusa Dua, Bali.

ASEAN Agrees on Partnership to Boost Investment
The 10 ASEAN member states agreed on Wednesday to work together to promote investment in the region, as well as to exchange information and experience in efforts to boost the investment. The agreement was made during the meeting of the ASEAN Heads of Investment Agencies, as part of the ASEAN Investment Forum in Nusa Dua, Bali, on Wednesday. The forum conjoins with the 19th ASEAN Summit and sixth East Asia Summit that will take place from Thursday to Saturday, also in Nusa Dua. "This agreement on investment partnership is aimed at preparing an investment institution to improve the investment climate in Southeast Asia," Indonesian Coordinating Board (BKPM) deputy head for investment partnerships Achmad Kurniad said Wednesday in Nusa Dua.

Russia Pledges $3 Billion for Kalimantan Railroad
Russia will spend US$3 billion to build a trans-Kalimantan railroad, according to a senior minister. "I met with the Russian deputy prime minister recently and I got the confirmation of the investment," Coordinating Economic Minister Hatta Rajasa told reporters in Nusa Dua, Bali on Wednesday. Hatta said that the Central Kalimantan administration opposed the project and that the governor wanted to his province alone. "We ask for the willingness of the governors to look at the aspect of the national interest in this project, not just the interests their own regions," he said.

RI to Seek UNESCO Recognition for Aceh's Saman Dance
Indonesia will seek UNESCO`s recognition for Aceh`s traditional "Saman" dance at the sixth annual meeting of the Government-UNESCO Committee on Intangible Cultural Heritage Protection in Bali on November 22-29. Education and Culture Minister Muhammad Nuh said here on Wednesday the Saman dance was proposed (as an intangible cultural heritage) at the fifth meeting in Kenya in 2010 and he believed it would be validated by UNESCO this year. The minister said Indonesia was elected by acclamation to host the sixth UNESCO meeting in Kenya in November 2010. "Since October last year Indonesia has also been registered as a UNESCO Executive Board member for the period of 2011-2015," he said.

Wednesday, November 2, 2011
RI's Non-Oil/Non-Gas Exports Up 35 Percent in September
Indonesia`s non-oil/non-gas exports in September 2011 reached a total value of US$13.6 billion or 35 percent up from the same period last year, a senior trade official said. Deddy Saleh, director general of foreign trade of the ministry of trade, said here on Tuesday the exports in September brought the value of non-oil/non-gas exports in the third quarter of the year to US$120.9 billion or up 31.7 percent compared with a corresponding period last year. "With oil and gas exports at US$31.6 billion, the country`s overall exports reached a value of US$152.5 billion," he said. He said the January-September exports` value had led to optimism that the US$200 billion target for the country`s overall exports for this year would be achieved.

Manufacturing Production Up 5.60 Percent in Q3
Indonesia's manufacturing production rose 5.60 percent in the third quarter of 2011 from the same period last year, according to the National Statistics Agency. "Annual production in big and medium manufacturing industries is rising and it has been increasing in the last three years," the agency`s deputy for service and distribution statistics, Djamal, said here on Tuesday. He said industries that have recorded annual growth are auto-industry (29.76 percent), tobacco processing (11.70 percent), textile industry (9.25 percent), food and beverage industry (7.73 percent) and garment (5.34 percent).

Indonesian Consumers Have Slightly Rosier Outlook on Economy
Indonesian consumers leaned toward optimism in their views of the economy, although the general feeling was mixed, according to a survey conducted by the central bank. The survey, based on 4,600 households in 18 major cities, recorded a slight rise in the Consumer Confidence Index, which increased 1.1 points to 116.2 thanks to bullish attitudes toward income and job availability. A score of more than 100 points means consumers are more upbeat than not about the future of the country's economy, while a score below 100 indicates pessimism is more prevalent.

Indonesia Donates US$ 1M in Aid to Turkey
Indonesia has provided Turkey with humanitarian aid worth US$1 million after the disaster-struck nation requested assistance in getting through a difficult post-quake period, the National Disaster Mitigation Agency says. "The Turkish government has asked for international aid in the form of tents, prefabricated house and containers," BNPB spokesman Sutopo Purwo Nugroho said on Wednesday as quoted by tribunnews.com. Sutopo said that the Turkish Ministry for European Union affairs, the European Union and the Turkish Red Crescent had signed a grant deal to provide 1,200 housing units to accommodate around 6,000 people who had become homeless because of the earthquake.

RI Entrusted to Host International Military Conference
Indonesia has been entrusted to host the 53rd International Military Testing Association (IMTA) and the 7th International Military Leadership Association (IMLA) in Kuta, Bali. Indonesian Army Chief of Staff General Pramono Edhie Wibowo on Tuesday after opening the Conference of International Military Testing Association said the holding of the conference was an honor for Indonesia. "It was only in 2008 that Indonesia joined, and this is an honor for the Army`s psychology to hold the event in Bali, and we had been entrusted to hold the 53rd event and the 7th IMLA," he said.

President Proposes New Approach to Develop Multicultural Life
President Susilo Bambang Yudhoyono has called on all parties in the world to join Indonesia in creating a new approach to the development of multicultural life. In his speech at the special session of the 36th UNESCO General Conference to mark the 10th anniversary of the declaration of universal cultural diversity here on Wednesday, President Yudhoyono said a new approach must be found to develop understanding over cultural diversity and differences. "The previous paradigm of `I and you` should now be changed into 'we'," he said.

Tuesday, November 1, 2011
RI Enjoys US$2.8 Billion Foreign Trade Surplus in September
Indonesia enjoyed a surplus in both its non-oil/non-gas and oil/gas trading activities with other countries in September 2011, namely to the amounts of US$2 billion and US$0.8 billion respectively, a Trade Ministry official said. Likewise, the country`s balance of trade recorded another surplus either for oil/gas or non-oil/non-gas commodities, Director General of Foreign Trade at the Trade Ministry Deddy Saleh said here on Tuesday. "The industrial sector dominated non-oil/non-gas exports," he said. He said in the January-September 2011 period, exports from the industrial sector recorded the highest growth of 33.4 percent to US$91.8 billion from US$68.8 billion in the same period last year.

Government Expects Moderate Economic Growth This Year
The Finance Ministry has forecast that the Indonesian economy will grow 6.5 percent this year, a senior ministry official says. "The economic growth is expected to reach 6.5 percent, or perhaps up to 6.6 percent," Finance Ministry fiscal policy chief Bambang Brodjonegoro said in a presentation on Monday. Bambang attributed the growth to Indonesia's solid economic fundamentals and controlled inflation rate of 4.9 percent. Next year the ministry expects a higher growth rate of 6.7 percent as the market regains purchasing power, while enjoying improvements in infrastructure and bigger industry capacities, he said.

Managing Papua with Heart
In his State of the Nation address on Aug. 16, 2011, President Susilo Bambang Yudhoyono underlined the importance of addressing the complicated problems facing Papua. He reiterated that the government had established its policy to ensure that development in the easternmost territory could really lead to just, secure, peaceful and prosperous lives for the people there. In the political sphere, through special autonomy, the central government has given greater authority to the local government to carry out development according to its resources. During the last five years, the central government also went through substantial fiscal decentralization to directly support the acceleration of development in Papua. Papua is also one of the economic corridors in the Master Plan of Economic Development Acceleration and Expansion of Indonesia.

President to Deliver Speech at Special UNESCO Session
President Susilo Bambang Yudhoyono is scheduled to deliver a speech about the Indonesian government`s efforts in preserving and protecting its cultural diversity at a special session of UNESCO here on Wednesday (Nov 2). Yudhoyono will share Indonesia`s experience in maintaining cultural diversity for the sake of unity at the special UNESCO session marking the 10th anniversary of the Universal Declaration on Cultural Diversity. "Indonesia has been chosen to deliver a key speech because they consider Indonesia as a an example of a country where cultural diversity eventually became a source of strength," the head of state said at Halim Perdanakusuma Air Force base in eastern Jakarta on Monday (Oct 31) shortly before his departure to France.

RI to Bring Developing Countries' Interests to G-20 Summit
Indonesia as a representative of the developing world will ensure that the G-20 summit in Cannes, France, will also discuss the interests of developing countries besides efforts to overcome the crisis in the United States and Europe. "Indonesia will remain consistent in representing the interests of developing countries. The G20 summit is to discuss economic problems in developed countries. Of course, those problems are important but there are other issues affecting developing countries that also need to be taken up," President Susilo Bambang Yudhoyono said at Halim Perdanakusuma airport here Monday shortly before leaving for France.

News Focus: ASEAN Moves Closer to Adoption of Common Visa
The 19th ASEAN Summit to be held in Bali on November 17-19, 2011, is expected to discuss among other things the proposed common ASEAN visa system as part of the ASEAN connectivity plan. ASEAN foreign ministers at their 44th ASEAN Ministerial Meeting in Bali recently agreed to study further the common visa proposal, Widya Rahmanto, an official of the foreign ministry`s ASEAN cooperation directorate general, said in Jakarta on October 27, 2011. Indonesia as the current ASEAN Chair hoped the upcoming ASEAN Summit would agree on the proposed common visa so an official study could be carried out starting in 2012, he said.

UNICEF to Complete Compulsory Education in NTT
The United Nations Children`s Fund (UNICEF) is committed to completing the nine-year compulsory education program for the children of 0 to 18 years in 2015 in East Nusa Tenggara (NTT), its spokesperson said. "We are going to cooperate with all public elements in our effort to reach the goal of nine-year compulsory education here," East Nusa Tenggara UNICEF spokesperson Yulida Pangastuti said in Waetabula, Southwest Sumba, on Tuesday. According to her, the issue of education was not merely the responsibility of educational institution but it was a common problem that has be addressed with all public elements.

NTB Readies for Newmont Share Purchase: Governor
The West Nusa Tenggara (NTB) provincial government is ready to purchase seven percent of copper and gold mining company PT Newmont Nusa Tenggara (NNT) as has been recommended by the House of Representatives, says governor Zainul Majdi. Zainul made the statement after a meeting with the House leadership here on Tuesday. The House leadership asked the NTB provincial government to ready the purchase following the finding by the Supreme Audit Agency (BPK) citing improprieties in the US$246.8 million sales and purchase agreement (SPA) recently signed between NNT and the Investment Agency (PIP) representing the government.