Friday, September 30, 2011
Indonesian Industrial Park Firms Thrive on FDI Boom
Indonesia's industrial park firms are enjoying a revival in demand for new plots, with sales already up more than 50 percent this year compared with 2010 at over $4 billion as foreign investment surges in Southeast Asia's biggest economy. The world's fourth most populous country drew in a record $9.6 billion in foreign direct investment in the first half of 2011, attracted by its relatively stable politics and economy since the 1998 financial crisis, plus abundant resources and huge consumer spending power. That trend is expected to continue as global firms look for low-cost bases and alternatives to China, where growth may be slowing and labour is increasingly expensive, analysts said.

Unilever Increases Investment by US$600 Million for RI
Investment Coordinating Board (BKPM) chief Gita Wirjawan, says PT Unilever is ready to increase investments by US$ 600 million for Indonesia. This was stated after he joined President Susilo Bambang Yudhoyono in a meeting with PT Unilever CEO Paul Polman, in Jakarta yesterday. Unilever plans to expand three of its factories in Java. "The company will also build a new plant facility in Semangke, North Sumatra, for a fatty acid-based chemical plant," he added. However, the government suggested that Unilever build the next plant on another island. "They listened to our suggestion and will gather 10 companies to invest 50 million euros in Nusa Tenggara," he said.

RI Seeking Renegotiations on Contracts With Freeport, Newmont
Indonesia is seeking renegotiations on its contracts with the two largest gold and copper mining companies in the country, PT Freeport Indonesis and PT newmont Nusantara, a minister said. "Many contracts were made 20 to 30 years ago and conditions have now changed and therefore changes need to be made on the contracts," chief economic minister Hatta Rajasa, said after a meeting to discuss the Master Plan for the Acceleration and Expansion of Indonesia Economic Development (MP3EI) here on Thursday. Hatta said Indonesia had laws and it would implement them according to the existing provisions.

U.S. Sponsors Inaugural Indonesia Biorisk Association Conference
The United States has sponsored the inaugural conference of the Indonesia Biorisk Association, a professional organization dedicated to promote biosecurity and biosafety management in Indonesia, US embassy here said in its website. On September 28, 2011, Acting U.S. Deputy Chief of Mission (DCM) Jim Schnaible delivered opening remarks at the inaugural conference. Acting DCM Schnaible congratulated the bioscience community on the successful launch of the IBA, and highlighted the U.S. government`s role in funding and supporting the IBA through the U.S. State Department`s Biosecurity Engagement Program.

Governor, US Envoy Open Banda Aceh-Calang Highway
US Ambassador to Indonesia Scot Marciel and Aceh Governor Irwandi Yusuf on Thursday opened the Banda Aceh-Calang west coast highway at a ribbon cutting ceremony on the Lambeso River Bridge. According to US Embassy press release issued on Friday, the 150-km roadway, which cost US$280 million and was built through US and Indonesian cooperation, connects 74 villages to Banda Aceh, and makes travel faster, safer, and more affordable for people and businesses in Sumatra. The Banda Aceh highway project was part of a US$430 million development assistance package for relief and recovery to assist devastated communities in Aceh after the December 2004 earthquake and tsunami, which resulted in the loss of 175,000 lives, left half a million people homeless and destroyed businesses.

News Focus: Multi-Cultural Carnival to Help Strengthen Maluku's Stability
With the ever increasing popularity of Maluku Islands, the multi-cultural carnival in Ambon on Wednesday, September 18, 2011, was intended to help strengthen stability in the province. Organized by Maluku`s Center for Conservation of Historical and Traditional Values, the multi-cultural carnival was intended to help make World Tourism Day which falls on September 29 a success, in addition to preserving the province cultural diversity. "The wealth of Maluku`s resources must be maintained, preserved, and realized in various activities and cultural performances in order that it will not be eroded by the changes of time," head of Maluku`s Center for Conservation of Historical and Traditional Values Stefanus Kiwery said in Ambon on Wednesday.

Thursday, September 29, 2011
RI Stock Exchange Index Up on Selective Buying
The Indonesia Stock Exchange`s composite price index rose t0 3,500 at the market's close here on Wednesday due to selective buying by investors. The IHSG was up 39.23 points or 1.13 percent at 3,513.17 while the index of LQ45 blue chips was up 9.82 or 1.62 percent at 614.53. Of all the shares traded on Wednesday, 105 gained, 136 dropped and 72 remained constant. Transactions occurred 150.154 times involving a total of 5.076 billion shares worth Rp5.244 trillion. Astra International (ASII) shares rose by Rp1,650 to Rp62,000 per share, United Tractor (UNTR) by Rp850 to Rp21,950 and mining company PT Bukit Asam (PTBA) by Rp650 to Rp16,100.

Government to Grant Business Permits for Ecosystem Restoration
The government says it will grant permits to businessmen wanting to restore the ecosystem. The Forestry Ministry's secretary-general Hadi Daryanto has targeted 2.5 million ha to be restored between 2000 and 2014. "The companies will not be required to submit an Environmental Impact Analysis," Hadi said yesterday. The ministry has recorded that 40 companies have requested a business permit to restore a total of 3.94 million ha. However, he said the ministry would not easily grant permits and 22 companies had already been rejected.

Legal Amendments Needed to Tackle Terrorism More Effectively: BIN Chief
State Intelligence Agency (BIN) Chief Sutanto said certain amendments needed to be made to existing laws to improve the handling of terrorism, and the role of intelligence. "So far, coordination (among law enforcing agencies in fighting terrorism) has been good. But under existing laws, the agencies can act only on the basis of sufficient evidence so it is sometimes difficult to enforce the law in the field. Information alone is not enough to act. Law enforcing agencies can act only after the information is followed by or has produced evidence," Sutanto said at the Presidential Palace compound here on Wednesday. He said amendments to the relevant laws were needed to make counter-terrorism efforts more effective.

News Focus: Green Economics Beneficial to Indonesia
The application of green economics principles in Indonesia is relatively new, but the nation as well as international experts have seen significant benefits of the policy. The United Nations Environment Program (UNEP) in its new report entitled "The Orangutan and the Economics of Forest Conservation in Sumatra" which was launched in Jakarta, on September 28, 2011, said conserving key rainforests in Indonesia could generate considerable revenues and multiple Green Economy benefits from combating climate change, securing water supplies and improved livelihoods while throwing a life line to the world`s remaining populations of orangutans.

RI, US Agree on TFCA Debt-For-Nature Swap
The forestry and finance ministries and the US embassy signed a dept-for-nature swap deal worth US$28.5 million for conservation of forests in Kalimantan under the Tropical Forests Conservation Act (TFCA) 2 agreement. "The cooperation between the two countries under the TFCA 2 program will contribute to the Indonesian government's commitment to the forest and biodiversity protection as well as the greenhouse gas emission reduction as formulated in the forestry ministry`s strategic planning," Darori, the forestry ministry`s director general of forest protection and nature conservation, said here on Thursday. In implementing the TFCA 2 program, the two countries will be supported by two swap partners, namely the Nature Conservancy and WWF.

Inflation Seen Rising, But Rate Rise Unlikely
Inflation probably accelerated this month as prices increased because of the festivities that followed Ramadan and a weaker rupiah that lifted the cost of imports, analysts have said. Even with consumer prices rising, the central bank is likely to keep its key interest rate steady in October and for the rest of the year on concerns about growth and possible capital outflow, they said. The median forecast of seven economists surveyed by the Jakarta Globe put the headline annual inflation for September at 4.90 percent. That would be up from 4.79 percent in August, the Ramadan month.

Legislators Discuss Intelligence Bill
Members of the Indonesian House of Representatives (DPR) are discussing the Intelligence Bill which, if it is passed, would be used as a reference for State Intelligence Agency (BIN) operations. "Discussions on the bill is still ongoing but they have already narrowed to agreeing on the article relating to intelligence wiretapping," House Speaker Marzuki Alie said here on Wednesday. He said the article was crucial because it concerned the mechanism to exercise the power. "What needs to be discussed in detail is how to prevent the article from being misused for other purposes," he said.

Wednesday, September 28, 2011
RI Economy Not Much Affected by European Crisis: Analyst
Indonesia`s economy is currently in stable condition and not too much affected by the impact of the financial crisis in Europe, an analyst said. "The Indonesian economy is not very much affected because it is still supported by a large domestic market with the non-tradable sector serving as the engineer," economic analyst Telisa Felianty said in a presentation here Tuesday. Telisa said growth of labor productivity in Indonesia was increasing, the demographic bonus was also helping the economy to remain safe. Besides the economy was also being supported by the limited exports of Indonesian goods to Europe so that the crisis there did not have a direct effect on Indonesia.

Indonesia President Vows to Protect Forests
President Susilo Bambang Yudhoyono on Tuesday stated his commitment to ensure sustainable development of the country's environment and forests. "I will continue my work and dedicate the last three years of my term as president to deliver enduring results that will sustain and enhance the environment and forests of Indonesia," Yudhoyono said in a speech in his opening address at the Forests Indonesia Conference. The president said the country's people, economy, environment and way of life are tightly intertwined with its forests. "Our success in managing our forests will determine our future and the opportunities that will be available to our children," Yudhoyono said.

Minister Affirms Government's Commitment to Promoting Green Economics
Environmental Affairs Minister Gusti Muhammad Hatta has affirmed the government`s commitment to promoting green economics. President Susilo Bambang Yudhoyono had instructed the application of an economic development system by using environmentally friendly energy since last year, and its implementation had reached 48 percent, Minister Gusti Muhammad Hatta said here on Wednesday on the sidelines of the five-day Tunza International Children and Youth Conference on the Environment 2011. "So, 48 percent of the power energy being produced, have been using environmentally friendly energy," he said.

Let's Use Batik as Diplomatic Tool: SBY
President Susilo Bambang Yudhoyono said batik served as a "diplomatic tool" as he officiated on Wednesday the World Batik Summit 2011 in Jakarta, which will run until Oct. 2. "We use batik as a tool for diplomacy and friendship with the international community," the President said in his opening speech. He didn't elaborate exactly how batik could be used as a diplomatic tool, but said it had been enabled through UNESCO's naming of batik as an intangible element of world cultural heritage. Yudhoyono said Indonesians should be proud of UNESCO's acknowledgement of batik, and should promote batik as an Indonesian product.

Tuesday, September 27, 2011
Indonesia: An abundance of Wonders And Beauty
Indonesia has a national motto which reads in Bahasa Indonesia - Bhinneka Tunggal Ika; translated to English it means Unity in Diversity. For anyone in Indonesia this is familiar but for those less familiar with this country it is an interesting insight into the aspirations of the nation. The word 'diversity' is a particularly good representation of this country. It is a country with remarkable diversity. That diversity manifests itself in a wealth of wonders and beauty that are the product of a varied range of natural environs and social and ethnic groups and their cultures. It is something of a cliche to think of Indonesia as a string of thousands of islands and the world's greatest archipelago; a person could spend a lifetime island hopping here and be consistently amazed or impressed.

JCI: 'Oversold' Market Bounces Back Amid Govt Tinkering
Stocks rebounded from a 12-month low on Tuesday after the central bank reportedly continued its intervention in the foreign exchange and bond markets to stop the value of Indonesian assets from declining further. The Jakarta Composite Index advanced 157.80 points, or 4.8 percent, to close at 3,473.94, clawing back the previous day's 3.2 percent decline. The benchmark ended Monday at its lowest since Sept. 7 last year. More than 5.25 billion shares worth Rp 5.79 trillion ($648 million) were traded on the Indonesia Stock Exchange. Gainers outnumbered decliners, 247 to 23. Foreign investors returned to the market on Tuesday, with net buying of Rp 42 billion.

Rupiah Strengthens on Tuesday Morning
The rupiah strengthened against the US dollar at opening time on Tuesday morning, in what analysts say was a result of positive sentiment on the global market. The rupiah rose 130 points to Rp 8,920 per dollar, from 9,050 per dollar at the closing time on Monday. "The global market sentiment improved in last night's trading, affecting the Asian markets today, including the rupiah," Samuel Sekuritas currency market analyst Lana Soelistianingsih said Tuesday in Jakarta. Lana added that sentiment was improving because the market expected European leaders to provide a solution to tackle the ongoing debt crisis in the Euro zone, after a meeting of global finance leaders in Washington on the weekend.

Indonesia Calls for UN Reform
Indonesia expressed hope the United Nations could strengthen its central role of promoting cooperation among countries in the world by reforming itself. "To be able to address new and emerging challenges, and not least, to identify new opportunities, full support for, and reform of the United Nations are key. That is the only way the United Nations can remain relevant. The only way to ensure that multilateralism will flourish," Indonesian foreign minister Marty Natalegawa said at the 66th UN General Assembly here on Monday. Marty said the world is facing various complex challenges starting from nuclear threats, piracy, terrorism, financial and economic crisis to serious poverty and hunger in various parts of the world.

RI Part of Global Solution to Climate Change
Indonesia is committed to be proactive and part of a global solution to climate change, Foreign Affairs Minister Marty Natalegawa has said. Marty made the statement at the general debate of the 66th session of the United Nations General Assembly in New York on Monday, September 26, 2011. "Through the REDD+ program, we are using our natural rain forests as an important part of our mitigation efforts," Marty said. "Our commitment to work in partnership in addressing climate change must not founder in the face of the looming and renewed threat of global financial and economic crisis," he added.

Norwegian Minister for Environment Praises RI's Fight Against Climate Change
Norway`s Minister for the Environment and International Development Erik Solheim has praised Indonesia`s commitment to fight against climate change at the Forests Indonesia Conference held here on Tuesday. "The president has issued an overall policy on how Indonesia will combat climate change. What he has done today is a very positive step in making Indonesia a world leader in the fight against climate change," Minister Solheim said as quoted in a press statement of CIFOR (Center for International Forestry Research). Solheim opened the conference on "Forests Indonesia: Alternative futures to meet demands for food, fiber, fuel and REDD+", hosted by CIFOR and in this video speaks of Norway`s involvement in the implementation of the bilateral agreement on REDD+, what Indonesia can learn from Brazil`s bilateral agreement and issues surrounding carbon offsets.

Transitioning Into Indonesia's New Energy Architecture
The World Economic Forum's 2011 Annual Meeting of the New Champions or "Summer Davos" in Dalian concluded recently. The New Energy Architecture - widely considered one of the considered most important initiatives at the forum - reveals that significant change in the energy system structure is under way, with many believing the world might even be at an historic inflection point that will fundamentally alter the global energy architecture. Earlier, the forum stated that 90 percent of the energy leaders in Davos believe that the energy architecture is changing significantly. Thirty-six percent think it is even at a point of inflection. The urgency of global attention to the energy sector's most strategic issue is unavoidable.

Monday, September 26, 2011
Capital in Indonesian Banks is Safe, says BI
Bank Indonesia deputy governor Halim Alamsyah, says capital held in national banks is safe despite concerns about the global economy. He admitted the global crisis could affect Indonesia, but said the capital adequacy ratio of national banks remained above 8 percent. Halim said that BI has conducted a stress test. "The result indicated banks' liquidity and capital are still safe even if the worst scenario happens," he said in Jakarta last weekend.

President Signs Decree on Gas Emission Reduction Action Plan
President Susilo Bambang Yudhoyono has signed a decree formalizing an action plan to cut greenhouse gas emissions in the country, a cabinet official said. Presidential Decree No. 16/2011 on the National Action Plan on Greenhouse Gas Emission Reduction was was issued based on the consideration that Indonesia is prone to the impacts of climate change due to its geographical position, Cabinet Secretary Dipo Alam said in a statement here on Monday. "So Indonesia must actively take part in preventive efforts through climate change mitigation," he said.

Indonesian-US Trade Will Remain Strong: Official
Bilateral trade between Indonesia and the United States will blossom in the coming years despite the fragile world economy, an American official said on Friday. The US assistant secretary of commerce for trade promotion, Suresh Kumar, who also serves as the director general of the US and Foreign Commercial Service, said there was still reason to be optimistic. "When the US catches a cold, the rest of the world sneezes. America continues to not grow at the pace at which we wanted to grow, but we have seen a continued expansion of our economy. We are seeing a continued expansion in the people coming into the work force," he told the Jakarta Globe in an exclusive interview on Friday.

Catalyzing Economies, Growing Youth Employment Without Destroying the Earth
As delegates from around the world converge on Indonesia for the Tunza International Children and Youth Conference 2011, greening the economy as well as generating decent jobs for young people now and in the future are emerging as major tests for the global economy. The events that have swept through parts of North Africa and the Middle East in recent months have in part been a reaction to joblessness and a mood of frustration and hopelessness among the unemployed and under-employed, especially youth. Youth unemployment in many countries of the region hovers at around 23 to 29 percent, but can be higher. The youth employment crisis isn't confined to any region or developing countries - in the eurozone, youth employment has jumped from 14 percent to 20 percent in the past few years, and in some countries, the number is even higher.

Friday, September 23, 2011
News Focus: RI Wants to See Palestine Gain Statehood Through UN
The Indonesian government has expressed its support for Palestinian President Mahmoud Abbas's intention to secure full United Nations membership for his country with the formal bid to be made on Friday, September 23, 2011. The support was once again expressed by Foreign Minister Marty Natalegawa in a meeting with his Palestinian counterpart Riad al-Maliki on the sidelines of a UN General Assembly session at the UN Headquarters in New York on Tuesday (Sept 20). Whatever the option the Palestinians will take or the result of the UN membership application process, Indonesia will continue to give its full support to the Palestinian cause, especially through the Non-Aligned Movement and the Organization of the Islamic Conference (OIC), Marty told reporters following his meeting with Al-Maliki.

BI to Continue Intervening in Market to Stabilize Rupiah
Bank Indonesia will continue buying state debentures (SUN) in an effort to stabilize the rupiah which has weakened due to negative sentiment over global economic conditions, its chief, Darmin Nasution, said. "As of yesterday we have changed the way of our intervention. Before we intervened through currency market but as of yesterday we also intervened through the SUN market," he said here on Friday. He said the efforts proved effective to calm the market as shown by the increasing rate of the rupiah on Thursday (Sept 22) to Rp8,760 against the US dollar from Rp8,860 before.

RI Forest Industry's Employment Hits 3.7 Million
A new report by consultancy ITS Global has found that Indonesia's forest-based industries including timber harvesting, wood product manufacturing and pulp and paper products, make a substantial contribution to Indonesia`s economy. The report said the sectors contribute approximately USD 21 billion to Indonesia`s GDP, or roughly 3.5 percent of the national economy, ITS Global said in a press statement here on Friday. Wood products and pulp and paper manufacturing represent around 8.3 per cent of manufacturing value-added.

Balinese Antique Furniture Exports Remain High Despite Strong Competition
Balinese antique furniture continues to be in high demand overseas despite strong competition from such countries as China, India, Thailand, Vietnam and Malaysia, a local trade official said. In the January-June period of 2011, foreign exchange earnings from Balinese antique furniture exports reached US$19.3 million, Putu Bagiada, head of the external trade section at the Bali trade and industry office, said here Thursday. The figure represented a 10-percent increase compared with the amount earned in a corresponding period in 2010 which was US$17.8 million.

Chicago's Komodo Campaign Receives Warm Welcome
Hosted by the Indonesian Consulate General in Chicago, the event showcased colorful woven fabrics, a photo and video presentation and a performance by Indonesian musicians. "We are happy that the event is taking place in Chicago. We have to follow this event up with some other promotions and also infrastructure improvements," Consul General Benny Bahanadewa said during the event at Crystal Garden at Navy Pier, Chicago. A pre-recorded speech by Indonesian Ambassador to the United States Dino Pati Djalal was screened on television monitors, appreciating and welcoming visitors to the gathering.

Volunteer in Indonesia Among the Top 10 CNN Heroes for 2011
An American midwife working in Indonesia has been named a top 10 CNN hero for 2011, an award that honors ordinary people from around the world who are making extraordinary contributions in their communities. After Robin Lim's youngest sister died from pregnancy complications, Lim was inspired to become a professional midwife. In 2003 she started "Yayasan Bumi Sehat" (Healthy Mother Earth Clinic). The clinic provides medical assistance to women in Bali and Aceh. Lim has dedicated her life to helping women by offering free prenatal and birthing services. Indonesian women are 300 times more likely to die from pregnancy-related complications than women in developed countries.

Thursday, September 22, 2011
Government to Always Maintain Economic Growth Momentum
The government will always maintain the 2011 economic growth momentum amidst concerns about the global economy due to the US sovereign debt problem and the European debt crisis, a minister said. "Some have predicted that our economy will slow down. We consider the input but it must not make us afraid. We will always maintain the growth momentum so it will not weaken," Coordinating Minister for Economic Affairs Hata Rajasa said here on Wednesday. To achieve the economic growth target of 6.5 percent for this year, the government would continue to maintain the people`s purchasing power by supplying adequate quantities of goods, he said.

Indonesia to Become Top 10 Aviation Destination by 2014
The International Air Transport Association forecasts Indonesia will be among the top 10 markets for air travel due to the country's robust economic growth, tourism, and thriving industries. Tony Tyler, chief executive officer of IATA, said on Thursday that between 2010 and 2014, Indonesia is expected to be the sixth-fastest growing market for travel by international passengers. In 2014, Indonesia will rank as the ninth-largest domestic market and among the top 10 for international freight.

SBY, World Leaders Urge Euro Zone to Tackle Crisis
The leaders of Australia, Britain, Canada, Indonesia, Mexico and South Korea urged the euro zone to tackle its debt crisis, in a letter to the G20 released by Downing Street on Thursday. The joint letter said there was a risk of contagion to the world economy if the governments of countries using the euro fail to confront the currency's spiralling troubles. "Euro zone governments and institutions must act swiftly to resolve the euro crisis and all European economies must confront the debt overhang to prevent contagion to the wider global economy," the joint letter said.

RI Viewed as Priority Market by US Exporters
A visiting US government trade promotion official said due to its strong record of economic growth, Indonesia is viewed as a priority market by US exporters under the National Export Initiative. US Assistant Secretary of Commerce for Trade Promotion Suresh Kumar made the statement when attending the opening of one of Indonesia`s largest trade exhibitions, the Electric, Power and Renewable Energy Show (EPRE) at the Jakarta International Expo., here on Wednesday. Kumar travelled to Indonesia to attend the show as part of a five nation tour in East Asia where he re-affirmed America`s commitment to maintaining strong commercial ties with its Asian trading partners, the US Embassy said in a press release Wednesday.

News Focus: RI Boosting International Defense Cooperation
The year 2011 has witnessed significant defense cooperation forging activity between Indonesia and a few other nations such as Russia, South Korea, China, Serbia, and India. The international cooperation is in accordance with the government`s plan to modernize the country`s main armament system (Alutsista) in order to optimally support the National Defense Forces in carrying out its tasks to protect the national land, maritime and air territories. In a limited cabinet meeting held on September 8, 2011, President Susilo Bambang Yudhoyono gave directives that priority should be given to domestic manufacturers in the procurement of Alutsista hardware for the Indonesian military (TNI) and Police.

Google Expresses Interest in Indonesia, Lays Out Terms
Blue-chip Internet company Google has expressed an interest in investing in Indonesia, and is discussing its terms with the Investment Coordinating Board (BKPM). BKPM chief Gita Wirjawan said the board had been communicating intensively with Google. "Google is considering investing in Indonesia by establishing PT Google Indonesia," Gita said Wednesday.

Wednesday, September 21, 2011
ICT Splash With $3.4b to Connect Nation
The effort to wire the nation will lead to a Rp 30 trillion ($3.4 billion) investment bonanza in information and communications technology in the next three years, a government official said on Wednesday. Eddy Satriya, an official at the economics ministry, said the ICT sector remains a key driver of the nation's growth because its services are affordable for many of its 240 million people. Indonesia has about 45 million internet users and 180 million mobile users. Of the Rp 30.5 trillion total investment expected from 13 companies in the sector, about Rp 6.2 trillion - a fifth of the total - has been delivered so far this year.

National Economy to Grow Only 6.5 Pct in 2012: BI
Indonesia's economy in 2012 will grow 6.5 percent, or slower than 6.7 percent as assumed in the Draft 2012 State Budget, Bank Indonesia (BI)`s Director for Economic Research and Monetary Policy, Perry Warjiyo said. "If the government`s assumption is 6.7 percent, then according to our calculations, it will only be 6.5 percent as world economic growth is predicted to drop from 4.5 percent to 4.0 percent," Perry said here Tuesday. He said the impact of the economic crisis in the United States and Europe on the Indonesian economy would be felt further in 2012 through a decrease in exports and lower demand for several commodities and consequently a reduction in their prices.

RI Government Calls on Businessmen to Support Food Resilience Program
The government has called on businessmen to support the national food resilience program by investing in the agricultural sector. The food resilience program provided investment opportunities, the agriculture ministry`s Secretary General Hari Priyono said here on Tuesday. "Therefore, we hope investments in the food security field to help accelerate the national food resilience," he said. Investment opportunities offered in the agricultural sector included cultivation businesses as well as industrial businesses, he said.

Industrial Countries Urged to Reduce Carbon Emissions
The Indonesian government has urged industrialized countries to commit to reducing energy consumption as climate change mitigation has been hampered by a weakening global economy. "Don't forget, developing countries have drafted the mechanisms and mitigation strategies to deal with climate change," forestry ministry expert staffer Boen M. Purnama said yesterday. Boen also said the commitment to reduce carbon emissions would depend on highly politicized negotiations. Meanwhile, the compensation fund from advanced countries for developing countries is slow.

US Commerce Official Sees Growth Opportunities in Indonesia Market
US Assistant Secretary of Commerce for Trade Promotion Suresh Kumar here on Wednesday attended the opening of one of Indonesia`s largest trade exhibitions named Electric, Power and Renewable Energy Show (EPRE) at the Jakarta International Expo. Kumar travelled to Indonesia to attend the show as part of a five-nation tour in East Asia where he re-affirmed America's commitment to maintaining strong commercial ties with its Asian trading partners, the US embassy said in a press statement here Wednesday. Assistant Secretary Kumar`s mission to increase trade between the United States and Indonesia falls under the US-Indonesia Comprehensive Partnership`s commitment to build stronger commercial ties.

Tuesday, September 20, 2011
RI's Forex Reserves Sufficient to Safeguard Rupiah: BI Official
Indonesia's foreign reserves are strong enough to safeguard the rupiah from money market pressures caused by the impact of the economic crisis in Europe, a central bank official said. "Based on our calculations, the total of our foreign exchange reserves is more than sufficient. Not only it is above US$100 billion or more than sufficient to meet the need of imports, debt payment as well as possible reversal but also because based on our predictions it is enough for withstanding pressures," Bank Indonesia`s director of economic research and monetary policy Perry Warjiyo said here on Monday. The rupiah exchange rate has continuously dropped against the US dollar since last week from Rp8,550 to Rp8,805 on Monday.

China, Indonesia, India Seen Leading Private Equity Returns
Rising buyouts between China and Japan, abundant leveraged debt in the region and the depth of China's markets mean Asia-Pacific private equity will continue to outperform the Western model, leading Asia fund managers said on Tuesday. China, the world's second-largest economy, Indonesia and India were expected to lead returns in the next three years for private equity investors in the region, buoyed by booming consumer demand, according to a survey of fund managers at the SuperReturn forum in Hong Kong. China has been delivering returns for private equity of 25 percent to 30 percent the past years and should experience similar growth in the next two to three years, said John Zhao, chief executive of China's Hony Capital.

RI FM Discusses Palestinian Issue With Counterparts at UN Headquarters
Foreign Affairs Minister Marty Natalegawa discussed the Palestinian issue with his counterparts in bilateral meetings on the sidelines of the United Nations General Assembly (UNGA), a foreign ministry press statement said here on Tuesday. In a bilateral meeting with Portuguese Foreign Minister Paulo Portas, Marty said Indonesia had always encouraged a peaceful settlement of the Palestinian problem. "Indonesia supports Palestine`s bid for UN membership, but the peace process must be put forward," Marty told Paulo Portas.

Indonesian Foundation to Hold World Batik Conference
The Indonesian Batik Foundation will hold a world batik conference to celebrate National Batik Day, from September 28 to October 2, 2011. The international conference would be officially opened by President Susilo Bambang Yudhoyono, chairperson of the Indonesian Batik Foundation Yultin Ginanjar Kartasasmita said here on Tuesday. The conference will also be highlighted with an exhibition and a cultural night and a fashion show to be participated by national and international designers.

Government Sending Medical Team to Flood-Hit Pakistan
The Indonesian government through its Ministry of Health is sending a humanitarian medical team to Pakistan to help victims of dengue fever outbreaks there. Coordinating Minister for People's Welfare Agung Laksono on Tuesday saw off the humanitarian medical team at its point of departure at his office. Agung said the catastrophic floods that occurred in Pakistan recently had caused widespread dengue fever outbreaks.

RI Urges Australia to Sign Montara Oil Spill Compensation Accord
Indonesia has urged the Australian government to soon sign an accord on payment of compensation over the 2009 Montara oil spill in the Timor Sea, Environment Minister Mohammad Gusti Hatta said. "The signing of the agreement was delayed because there was a change in the Australian energy and mineral resources minister`s post but we are now asking that the accord be signed soon," the minister said here Monday. The accord`s signing was previously scheduled to take place last August 29, 2011, but it was eventually delayed to September 6, 2011, and now it had been postponed again until a still uncertain date, he said.

Monday, September 19, 2011
BI Optimistic Rupiah to Appreciate Soon
Bank Indonesia (BI/the central bank) believed that the local currency rupiah would soon appreciate again because its last week`s depreciation was merely due to negative sentiment of global financial turmoil. BI Deputy Governor Hartadi A Sarwono said here on Sunday that the rupiah would strengthen again after the various policies carried out by BI were able to reduce pressures on the rupiah. "BI is committed to remaining in the market, including carrying out direct interventions such as buying state securities (SBN) through bilateral open market operations (OPT) both in the rupiah auction or in the foreign exchange one," he said.

Government to Allocate Rp 99 Tln for Main Armament Systems
The government will allocate Rp99 trillion for the maintenance and purchase of main armament systems until 2014, Defense Minister Purnomo Yusgiantoro said. The budget allocation for the main armament systems was one of the topics discussed at a limited cabinet meeting led by President Susilo Bambang Yudhoyono here on Monday, Purnomo said. "This is a national program which is directly coordinated by the President," he said. The limited meeting was the fourth of its kind to discuss a wide range of issues related to main armament systems.

BI Says Economy Solid Even as Foreign Money Flees
Central bank officials said on Sunday that the rupiah's recent weakness against the dollar was temporary and that the currency would regain its strength in the near future because of Indonesia's strong economic fundamentals. The currency closed at 8,755 per dollar on Friday, after a steep drop in midday trading on Wednesday to 8,800 a dollar. Prompted by global economic turmoil and market uncertainty, international investors are beginning to reduce their portfolios in Indonesia and other emerging markets, causing the rupiah and the Jakarta Composite Index to falter in recent days.

France Enthusiastic in Promoting Defense Cooperation with RI
Indonesian Deputy Defense Minister Sjafrie Sjamsoeddin said France was very enthusiastic in increasing defense cooperation with Indonesia and even presented a special award for the participation of Indonesian forces in international peacekeeping operations. Sjafrie Sjamsoeddin made the statement following a meeting with his French counterpart Marc Laffineur in a special interview with Antara`s London correspondent on Sunday. In the meeting with Marc Laffineur, Sjafrie Sjamsoeddin was flanked by head of defense facilities agency of the defense ministry Major General Ediwan Prabowo, assistant of air force planning and budgetary affairs Air Vice Marshal Rodi Suprasodjo and Indonesian defense attache at the Indonesian embassy in Paris Colonel Erwin B Utama.

Krakatau Steel to Move Into Mining
Krakatau Steel, Indonesia's largest steel producer, plans to establish a unit that will help to ensure that it has enough iron ore and coking coal for production. The subsidiary, to be called Krakatau Natural Resources, would be responsible for investing in the mining sector, either through the acquisition of iron ore miners and coking coal producers or through setting up its own mining operation to secure the commodities, Krakatau president director Fazwar Bujang said on Monday. The company has had some difficulties in ensuring supplies of iron ore and coking coal, two raw materials important for steel production. It may also secure the minerals by buying from suppliers, Fazwar said.

Chinese Company Invests in Nickel Smelting in Southeast Sulawesi
Chinese company Jilin Horoc Non-Ferrous Metal Group Ltd. in cooperation with Southeast Sulawesi government has signed a US$6 billion investment deal to build a nickel smelting plant in North Konawe. Chief economic minister Hatta Rajasa said here on Monday the project is also a project of cooperation with PT Billy Indonesia. "The three parties will finance the development cooperation project namely the regional government, the Chinese company and the Indonesian private company," he said. The cooperation agreement was marked by the signing of a memorandum of understanding between the North Konawe district administration and the Bombana district administration with Jilin Horoc Non-Ferrous Metal Group Ltd. and PT Billy Indonesia.

Friday, September 16, 2011
JCI Rebounds After Five-Day Slide
Indonesian stocks rebounded on Friday, halting a five-day slide after the European Central Bank announced plans to provide dollar loans to banks in Europe, helping to avert the region's debt crisis from worsening. The Jakarta Composite Index closed at 3,835.18, up 60.85 points, or 1.6 percent - ending a five day, 5.8 percent decline. For the week, the benchmark lost 4.1 percent. More than 4 billion shares worth Rp 4.1 trillion changed hands at the Indonesia Stock Exchange. Gainers beat decliners by 169 to 48. Foreign investors turned net buyers of Rp 25 billion in shares, ending four days of net selling.

Indonesia Fits as Middle Power Country
Indonesia fits its position as middle power country among many major powers in the world, an official said here on Thursday (Sept. 15). "Indonesia is the middle power country right now meaning that we are in the moderate position between major powers; traditionally Indonesia does keep distance from major power and doesn't let herself to be co-opted by one sides," Dewi Fortuna Anwar, the Vice President office`s Deputy for Political Affairs, said at seminar held by Center for Strategic and International Studies (CSIS).

RI to Bring Up Global Issues at UNGA Sessions
Indonesia will bring up global matters at the United Nations (UN) 66th general assembly which will be held in New York on September 19-28. According to a Indonesian Foreign Affairs Ministry press release received here on Thursday, Foreign Affairs Minister Marty Natalegawa would attend four of the high-level meetings and 17 ministerial meetings. "Indonesia as the ASEAN chair and Asian region coordinator will play an important role in these high-level meetings," said Marty Natalegawa.

Visas Issued to Indonesian Students Rise Over 20 Percent
The number of visas issued to Indonesian students going to the United States rose over 20 percent this summer to the highest level in ten years, a release made available to ANTARA from the US embassy said on Friday. The US Embassy will continue to improve the student visa process to ensure that anyone with a legitimate desire to study in the United States has that opportunity. This summer more than 90% of student visa applicants received a visa. Increasing student and exchange visitors between the United States and Indonesia is a key component of the US -Indonesia Comprehensive Partnership established by President Obama and President Susilo Bambang Yudhoyono.

President Wants Lower Foreign Loans: Minister
National Development Planning Minister Armida Alisyahbana said that President Yudhoyono has ordered to continue to reduce on foreign loans. "The President's instruction was that foreign loans really have to be lower. The percentage of debt to the GDP in 2014 must be a maximum of 22 percent," she said on Friday after a closed Cabinet meeting as quoted by kompas.com. Indonesia's debt-to-GDP ratio is projected to reach 30.2 percent by year's end.

US Grant for Indonesian Railway Company
US Ambassador to Indonesia Scott Marciel and president director of Indonesian Railway Company (PT. KAI) Ignasius Jonan signed an agreement on the provision of a US$600,000 grant for PT KAI. The grant was intended to support PT KAI`s expansion plan to meet greater rail demand, while ensuring the safety of the rail network, according to press release from the US Embassy here Thursday. "The United States is pleased to provide the technical assistance support for Indonesia`s National Railway Master Plan as yet another example of the commitment to support Indonesia`s development and to increase trade between our countries made by President Obama and President Yudhoyono when they established the US-Indonesia Comprehensive Partnership," Ambassador Marciel said.

News Focus: World Youths to Promote Environment in Bandung
Some 1,300 children and youths aged 15 to 25 years from 120 countries will gather in the West Java city of Bandung to plant trees, create a world city forest and come up with ideas on sustainable development. The youths will plant the trees in Bandung city`s Babakan Siliwangi, a 4-hectare-wide area formerly known as a culinary hub while attending the Tunza Indonesia, an international children and youth conference on the environment to be held in the West Java provincial capital on September 27 - October 1, 2011. "We have to be grateful for the trust given to us to host the international environment conference," Environment Minister Gusti Muhammad Hatta said here on Thursday.

Thursday, September 15, 2011
Government Prepares Stimulus Package to Address Global Crisis
The government has prepared a draft stimulus package as part of efforts to anticipate the impact of global crisis expected to continue until early 2012, Finance Minister Agus Martowardojo said. "In response to what is happening in Europe today we have thought of a stimulus package expected to be introduced in the first semester of 2012," he said at a working meeting with the House of Representatives (DPR) Commission XI here on Thursday. The stimulus package would function as a means to anticipate a possible impact of the global crisis on the Indonesian economy as a whole, he said.

Rupiah Strengthens on Thursday Morning After BI Intervention
The rupiah strengthened on Thursday morning after Indonesia's central bank stepped in by regulating foreign currency trade. The rupiah had been at its lowest position since Feb. 14, at 8,939 per US dollar, and closed at 8,884 on Wednesday. Bank Indonesia intervened in the currency and bond markets on Wednesday, and at 9.58 a.m. on Thursday, the rupiah had rebounded to 8,754 per dollar. The central bank made the right move under the circumstances, PT Bank Resona Perdania treasury chief Lindawati Susanto said in Jakarta on Thursday as quoted by kontan.co.id.

State Enterprises to Synergize to Strengthen National Connectivity
Sixteen state-owned enterprises (SOEs) have agreed to cooperate in the provision of logistics services to strengthen national connectivity through the Indonesia Logistics Community Services (ILCS). The agreement was formalized in a memorandum of understanding (MoU) signed here on Thursday in the presence of the state enterprises minister`s deputy for infrastructure and logistics, Sumaryanto Widayatin, at the state enterprises ministry. The SOEs involved in the agreement are PT Telkom Indonesia Tbk., PT Pelindo I-IV, PT Kereta Api Indonesia, PT ASDP Indonesia Ferry, PT Angkass Pura I, PT Angkasa Pura II, PT Pupuk Sriwijaya, PT Pos Indonesia, PT Kawasan Berika Indonesia, PT Semen Gresik, PT Varuna Tirta Prakasya, PT Bhanda Ghara Reksa and Perum Bulog.

US Official Visit to Promote Law Enforcement Cooperation
As part of the US-Indonesia Comprehensive Partnership, US Assistant Secretary of State William R. Brownfield visited Indonesia on September 11-12 to promote cooperation in law enforcement and combating corruption. Through Assistant Secretary Brownfield`s Bureau of International Narcotics and Law Enforcement Affairs the United States provides more than 10 million US dollars each year to support Indonesia`s efforts to strengthen law enforcement, and judicial institutions. According to a US embassy?s press release received here Thursday, during his first visit to Indonesia, Assistant Secretary Brownfield met with Indonesian National Police (Polri) Marine Police in Batam for discussions regarding maritime security issues and interdiction strategies in the Malacca Strait.

Peaceful Coexistence Absolute Need in Multicultural World: Din Syamsuddin
Peaceful coexistence is an inevitable necessity in a multicultural and multireligious world community, the leader of Indonesia`s second largest Muslim organization Muhammadiyah, Din Syamsuddin, said. "Without peaceful coexistence the world would be filled with conflicts," Din Syamsuddin said at an international conference on world peace in Munich, Germany, on Monday (Sept 12), according to press release received by ANTARA here Thursday. The conference was organized by the Saint Egidio community (a Catholic organization) and attended by 500 figures of different faiths from many countries.

38 Provincial Government Officials Attend Course at Harvard
The Home Affairs Ministry will send 38 regents/mayors and Regional Planning Agency (Bappeda) heads to the US to attend a three-week course at the Harvard Kennedy School of Government in mid-September. Ministry's spokesman Reydonnizar Moenek said the representatives were the best graduates in the Provincial Head Leadership Training, which has been held since 2009. The representatives are from Banjar Baru, Denpasar, West Sumbawa, North Luwu, Mamuju, Serdang Bedagai, Samosir, Solok, Agam, Bengkalis, Poso, Ternate, South Lampung, Sukabumi, Banyuwangi, Malang, Gresik, Kediri and Kutai Kartanegara.

Seven Countries to Participate in "West Java People's Feast 2011"
Seven countries are to take part in an exhibition dubbed "West Java People`s Feast - De Syukron 2011" to be held in Bandung on Saturday (Sept 17), a provincial capital investment official said. "The people`s feast is intended to be a medium for interaction and exchanges among business players in West Java and to strengthen their innovative and inspirational capacities," Yusuf Wibisono, head of promotions at West Java`s Capital Investment Coordinating Board, said here Wednesday. The seven foreign participants were China, France, Croatia, the Netherlands, Belgium, Japan and South Korea, he said. Besides displaying their products, the exhibition participants would also present artistic and cultural shows.

Wednesday, September 14, 2011
Indonesian Economy Performing Well: ADB
The Asian Development Bank is trimming its forecast for economic growth in developing Asian countries because of worries about weak demand from key trading partners including the US and Europe. The ADB said on Wednesday that it is lowering its 2011 growth forecast slightly to 7.5 percent from 7.8 percent previously for 45 Asian countries. The bank is also cutting its 2012 forecast to 7.5 percent from 7.7 percent. The Manila-based lender said the slowdown in demand from the United States and Europe "continues to cast a cloud over the region," with export growth easing off in the second quarter.

LPS Keeps Deposit Interest Rate at 7.5%
The Deposit Insurance Agency (LPS) has decided to keep its benchmark guaranteed rupiah deposit rate at 7.5 percent for the Sep. 15, 2011 - Jan. 14, 2012 period. The LPS made the decision after a meeting of its board of commissioners in Jakarta on Wednesday, during which it also decided to keep the benchmark interest rate for foreign currency deposits at 2.75 percent. The figures apply to deposits in commercial banks. As for rural banks (BPR), the LPS has decided on a benchmark interest rate of 10.25 percent.

Indonesia to Spearhead ATGC 2011
Indonesia will spearhead the 1st ASEAN Tourist Guides Contest 2011 (ATGC 2011) as a form of the country`s support as ASEAN chairman. "It is part of Indonesia`s tourism promotion effort in the eyes of tourist guides in all ASEAN countries," Ministry of Tourism`s Director General of Tourism Destination Development, Firmansyah Rahim, said here on Wednesday. He said the objective of organizing the 1st ASEAN Tourist Guides Contest 2011 was to rediscover quality standard, knowledge, skills, and good attitude as tourist guides in carrying out their tasks properly and professionally.

Finance Ministry: Excise Duty Raised 12.2 Pct Next Year
The finance ministry planned to raise cigarette excise duty by 12.2 pct in 2012 to limit cigarette production in Indonesia. "Tobacco product excise duty in 2012 will be raised by an average of 12.2 pct with a production limit set at 68.4 billion pieces per year," acting head of the fiscal policy agency Bambang Brodjonegoro in a working meeting with Commission XI of the House of Representatives in Jakarta Monday. Bambang said the excise duty on mechanized non-clove cigarettes will be reconciled with mechanical clove-cigarettes while the distance between manual clove-cigarette excise duty will be maintained with mechanical clove-cigarettes.

Indonesia, Vietnam Hope G-20 Can Prevent Recurrence of Crisis
Indonesia and Vietnam are hoping the Group of 20 countries can find the best possible way of preventing the recurrence of a global crisis. President Susilo Bambang Yudhoyono made the statement in the company of visiting Vietnamese Prime Miniter Nguyen Tan Dung at a press conference after a meeting here on Wednesday. He said other countries including Indonesia ad Vietnam would suffer if a global crisis happened again and therefore he hoped Europe together with the US could manage their economic problems well so that their impact would not be felt by other countries in the world.

Tuesday, September 13, 2011
Tax Receipts Reach 60.9% of Target
Tax receipts in the eight months through August reached 60.9 percent of the target of Rp878.7 trillion set under the revised 2011 state budget, a Finance Ministry official said. State revenues from income tax and value added tax reached 58.4 percent and income tax on non-oil/non-gas commodities 53.4 percent of the target, acting chief of the Fiscal Policy Board at the Finance Ministry Bambang Brodjonegoro said at a hearing with the House of Representatives (DPR) Commission XI here on Monday. "What we are concerned about is state revenues from value added tax and luxury sale tax which only reached 52.7 percent of the target," he said.

Foreign Investors Still Counting on Indonesia
Indonesia still has foreign investor confidence for making investments in the country, Capital Investment Coordinating Agency (BKPM) chairman Gita Wirjawan said. Especially with an economic growth rate estimated to reach 6.5 pct in 2011, Gita Wirjawan said at Indonesian Business Day held at Haus der Commerzbank in Berlin, Counsellor for information, social and cultural affairs at the Indonesian embassy in Berlin Ayodhia GL Kalake told Antara`s London correspondent on Sunday. A similar statement was also made by Indonesian ambassador to the German Federal Republic Dr. Eddy Pratomo, that Indonesia now also G-20 member country, has a favorable economic statistical record with a debt indicator to a GDP ratio of 26 pct, much better than China`s 60 pct.

News Focus: RI Again Garners Support for Palestine's Bid for UN Membership
As a staunch supporter of Palestine, Indonesia once again lobbied Non-Aligned Movement (NAM) members to support Palestine`s bid for full UN membership. A number of NAM member states had yet to recognize Palestine`s independence and therefore, the Indonesian government approached them, Michael Tene, a spokesman of the Indonesian foreign affairs ministry, said in Jakarta, on September 9, 2011. Palestinian leader Mahmud Abbas is due to present the bid for full UN membership on September 20 before the General Assembly despite opposition from Israel and its closest ally, the United States.

Government Sells Rp 8T Debt Papers on Tuesday
The Finance Ministry's debt management office (DMO) sold Rp 8 trillion (US$928 million) in debt papers in an auction on Tuesday, exceeding the initial target of Rp 7 trillion. "A five-series government bond auction was done on Sept. 13. Total bids reached Rp 19.15 trillion," Rahmat Waluyanto, the DMO director general, said in a statement released after the auction. The government decided to sell four series only, to mature in 2012, 2021, 2027 and 2041, with yields ranging from 4.5 percent to 7.7 percent depending on the maturity, he added.

Indonesia's Coal Sector Eyes 2012 Boom
Coal production is set to surge next year as coal miners bolster their businesses and several new mines commence production, the nation's miners say. Indonesia's production of thermal and coking coal is forecast to hit 380 million tons in 2012, up 5.5 percent on this year's estimate, Supriatna Suhala, the executive director of the Indonesian Coal Mining Association (APBI), said on Monday. The Energy Ministry's forecast for coal production next year is 332 million tons, but that estimate does not include the output of smaller mining companies.

Indonesia, Toyota's Priority in Developing Countries
Indonesia has been Toyota's priority for automotive investment and business development in the developing countries in view of its growth and market potentials. "Indonesia has been our main priority. Among the developing countries Indonesia has been positioned as a market growth leader and our hope is big," Toyota Motor Corporation president director Akio Toyoda said at a press conference here on Tuesday. The third generation of Toyoda family said Indonesia has contributed a lot to TMC especially at the time of automotive market slump in the US and Europe.

EU Still Supports Indonesia's Reduction of Carbon Emissions
The European Union (EU) is still supporting Indonesia's effort to reduce carbon emissions in dealing with climate change issues in two ways, said an European Union Commissioner here, Monday (Sept 12). "We are very supportive to countries like Indonesia in their own interest because it is the Indonesian people who will suffer from climate change impacts," said the European commissioner for international cooperation, humanitarian aid and crisis response Kristalina Georgieva. According to Georgieva, the EU is supporting efforts to overcome climate change in two ways, firstly financially by providing financial resources for action in reducing emissions that can be taken and by supporting the initiative of the European private sector for agreement in reducing illegal logging by committing not to buy any products of illegal logging.

Friday, September 9, 2011
9/11 Attacks Bring US, RI Closer
On Sunday, the world will mark the 10th anniversary of the most lethal attack on US soil since Pearl Harbor. The Jakarta Post is commemorating 9/11 with a special report on the Indonesian perspective of the attacks and their aftermath. Megawati condemned the attacks and vowed to work with the international community to combat terrorism. Bush welcomed Megawati's support, pledged additional funding for Indonesia and pressed for peaceful resolution of separatist conflicts while reiterating US support for Indonesia's territorial integrity. The US designation of Southeast Asia as a "second front" in the "war on terror" following Jamaah Islamiyah's foiled attack in Singapore in December 2001, and loud, public demands that Indonesia's terrorist crackdown had created tensions.

President: Arms Procurement Must Prioritize Domestic Manufacturers
President Susilo Bambang Yudhoyono pointed out that the procurement of main armament system (alutsista) for the Indonesian military (TNI) and Police force should prioritize domestic manufacturers. In his introductory address before a limited cabinet session on political, legal and security affairs discussing the procurement of alutsista at the Presidential Office in Jakarta Thursday the President said alutsista may be purchased from other countries only if domestic manufacturers were still unable the produce the needed armaments, "And this goes for both the Army, Navy, Air Force and Police", he pointed out.

RI to Lobby NAM Members for Palestine's UN Membership Bid
The Indonesian government will lobby Non-Aligned Movement (NAM) members to support the admission of Palestine into UN membership, a Foreign Ministry spokesman said. "Indonesia will make every effort to support the admission of Palestine into the UN. And the government`s stand has been made clear since the 16th NAM Ministerial Conference and the Commemoration of the NAM Golden Jubilee in Bali last May," Michael Tene said here on Thursday. He said a number of NAM member states had yet to recognize Palestine`s independence and therefore, the Indonesian government would approach them.

Indonesia, South Korea Pledge Closer Defense Ties
Indonesia and South Korea on Friday signed a memorandum of understanding to increase defense cooperation between the two countries. The MoU was signed by Indonesian Defense Ministry official Pos M. Hutabarat and Lee Yong-Dae from the South Korean defense force policy bureau. "We have agreed to hold regular, bilateral talks on the joint production, marketing and development of defense systems that are used in Indonesia and South Korea," Pos said in a press conference after the signing.

Thursday, September 8, 2011
JCI Expected to Continue Upward Trend
The Jakarta Composite Index (JCI) is expected to continue its upward swing on Thursday after surging 114.4 points or 2.87 percent on Wednesday to close just above a psychological barrier at 4,001. In technical terms, the JCI is expected to strengthen and break its short-term downtrend resistance line, E-Trading Securities research chief Betrand Reynaldi said Thursday.

Bank Credits Grow 24.2 Percent: BI
Bank credits until August 2011 grew 24.2 percent year-on-year mostly going to productive economic activities. Bank Indonesia however continued monitoring the development of credits in several sectors which tend to be consumptive, central bank spokesman Difi A Johansyah said here on Thursday. He said BI would continue optimizing the intermediary function of banks to support national economic expansion while continuing to maintain the stability of the whole banking system.

News Focus: RI Upbeat Over Its Tourism Target
Indonesia will most probably achieve its tourism target this year considering that it attracted 4.3 million foreign tourists during the January-July period. In the coming five months, Indonesia has to record the arrival of another 3.4 million foreign tourists in order to meet its target of 7.7 million in 2011. "This is good news as the figure shows an increase," Central Bureau of Statistics (BPS) Head Rusman Heriawan said. He earlier announced that the BPS had recorded the arrivals of 4.34 million foreign tourists up to July 2001, an increase of 7.53 percent from 4.04 million in the same period a year earlier.

Economic Growth Target of 7.6 Pct for 2012 Quite Realistic
Finance Minister Agus Martowardojo said the economic growth rate target of 6.7 percent for 2012 is quite realistic in view of external and internal challenges to the domestic economy that may lie ahead. "The government is of the view that the target is higher than what many international agencies have predicted at 6.5 percent," he said when delivering the government`s reply to the House of Representatives factions` general views on the bill on 2012 state budget here on Wednesday. He said the government was optimistic that the domestic economy in 2012 would perform better than in the previous years.

Government Optimistic Economy to Perform Better in 2012
The government is optimistic that the domestic economy will perform better in 2012 and will always be realistic in setting macro economic targets, a minister said. The government had always taken into account latest developments in the indicators of global and domestic economic performances as well as challenges to the domestic economy in 2012, Finance Minister Agus Martowardojo said in his address to a House of Representatives (DPR) plenary meeting here on Wednesday. While delivering the government`s reply to House factions` general views on the bill on 2012 state budget and its financial notes, the finance minister said the risks of global economic developments in 2012 would among others come from the fiscal and debt crisis affecting the United States and a number of European countries.

Capital Inflows, Rupiah's Appreciation Likely to Continue: BI
Foreign capital inflows and the rupiah's appreciation are likely to continue with higher volatility due to a slowing in global economic growth, Bank Indonesia (BI or the central bank) said. A slower-than-expected economic recovery in developed countries has caused a rise in access to global liquidity and investors` risk perception, and these factors in turn would prompt capital to keep flowing to emerging economies , including Indonesia, in the form of project or portfolio investment, BI spokesman Difi A Johansyah said here Wednesday. Bank Indonesia would keep on monitoring the impact of the decreasing global economic and financial performance on Indonesia`s economic performance, especially the impact of the slowdown of the world`s trade volume and the decreasing global commodity prices, he said.

RI Strongly Condemns New Delhi Bombing Attack
The Indonesian government strongly condemns last Wednesday's terrorist attack outside the High Court in New Delhi, India, that took a number of lives and injured dozens of innocent people. "The Government of Indonesia conveys its deepest sympathy and condolences to the Government and People of India and the victims along with their bereaved families. The Government of Indonesia supports the efforts of the Government of India to bring the perpetrators to justice," the Foreign Affairs Ministry said in a press statement here Thursday. The terrorist attack in New Delhi, India clearly shows that terrorism remains a threat to all humankind and requires continuous vigilance and cooperation amongst all parties and nations to overcome all acts of terrorism and extremism, the government said.

RI Committed to Helping Somalia Overcome Famine
The Indonesian government is committed to giving humanitarian aid to overcome Somalia's famine problem caused by a prolonged drought, an official said. "Indonesia is committed to giving aid to Somalia. The Social Affairs Ministry has agreed to provide aid for Somalia , along with a number of Non-governmental Organizations (NGOs)," Social Affairs Minister Salim Segaf Al-Jufri said here Thursday. The minister was concerned about conditions in Somalia where 13 toddlers die every day due to starvation. "During the past three months, at least 30,000 people died due to starvation in the East African country," the minister said.

Wednesday, September 7, 2011
RI Stock Market More Attractive Than Global
Investors consider Indonesia's stock market to be more attractive than the global bourses so that the Jakarta joint share price index continues to go up which indicates continued stock buying activity, stock market observer Ifan Kurniawan said. Worries about worsening global economic conditions were having a negative impacts on the New York and regional stock markets but the price index of the Indonesian Stock Exchange (BEI) strengthened 0.56 percent, Ifan said here on Wednesday. Ifan Kurniawan who is an analyst of PT First Asia Capital said the buying actions by market players were relatively small as they during the past few days they had been consolidating themselves.

Bank Indonesia to Hold Rate Steady, Economists Say
The central bank is likely to keep its key interest rate steady on Thursday amid signs the economic growth is stable and is at little risk of overheating, analysts say. While core inflation remains disconcertingly high, the headline inflation figure for August appears manageable, they say. Eight economists surveyed by the Jakarta Globe expect Bank Indonesia to keep its key policy rate at 6.75 percent, given that inflation appears to be safely within the bank's preferred range of 4 percent to 6 percent this year. BI has maintained the policy rate at 6.75 percent since February, when it was raised by a quarter percentage point.

Domestic Share Trading Remains Stable Despite Foreign Net Sell
Jakarta - Foreign net selling at the Indonesia Stock Exchange (BEI) reached Rp7 trillion in August but stock exchange conditions remained stable, BEI president director Ito Warsito said. "Although foreign funds went out the BEI index remains positive until now," he said here on Tuesday. The BEI index was up 23.80 points or 0.62 percent to 3,889.97 at the close on Tuesday while the index of LQ45 also up 4.54 points or 0.67 percent to 687.51 points.

Bali Top Holiday Spot in Asia: Poll
The readers of an online travel magazine have named Bali as the top holiday destination in Asia for 2011. The poll, conducted by Smart Travel Asia, also picked out several Bali resorts as the top places for a relaxing break. Bali took the top spot from Kerala, India, which was bumped down to No. 4. Phuket, Thailand, and Hong Kong were the runners-up, respectively. In terms of top places to stay, a number of Bali resorts were included in the top 25 list, including the Bulgari Resort Bali and the Four Seasons Resort Bali at spots 2 and 3, respectively.

Indonesia to Create Disincentives for Foreign-Made Goods
Indonesia will create disincentives for goods consumed on a large scale but not produced in the country, Capital Investment Coordinating Board chief Gita Wirjawan said here on Wednesday. "We will take stock of those products," he said following a coordination meeting at the office of the coordinating minister for economic affairs, Hatta Rajasa. He said Indonesia needed to address the practice of consuming foreign-made goods in large volumes in the country. "In the spirit of the Masterplan for Indonesian Economic Development Expansion and Acceleration (MP3EI) we will conduct downstreaming of production and increase national production capacity," he said.

TNI Chief Sends Off KRI Sultan Iskandar Muda to Lebanon
National Defense Forces (TNI) Commander Admiral Agus Suhartono on Tuesday saw off the Navy's warship KRI Sultan Iskandar Muda at its departure for Lebanon to join the UN peacekeeping force there. On the occasion, Admiral Agus Suhartono reminded the ship`s crew and other military personnel on the ship of the importance of respecting human rights and acting according to the standard operating procedures and rules of engagement set by the Maritime Task Force of the UN Interim Force in Lebaonon (MTF-UNFIL). The KRI Sultan Iskandar Muda-367 is the third warship Indonesia has sent to Lebanon to participate in the MTF-UNIFIL after the KRI Diponegoro-365 and the KRI Frans Kasiepo-368.

Tuesday, September 6, 2011
JCI Stocks Advance as Headline Inflation in Range
Investors on Monday returned to the local stock market after a week-long holiday in a buying mood after a report on inflation suggested the central bank will hold off in raising its key interest rate. The Jakarta Composite Index rose 24.44 points, or 0.6 percent, to close at 3,866.17 on Monday, the first day of trading in September. The market was closed last week for the Idul Fitri celebration. The benchmark gained as much as 1.8 percent in early trading but was dragged down by global market pressure later in the day. Trading at the Indonesia Stock Exchange was moderate, with 4.13 billion shares valued at Rp 6.09 trillion changing hands. Decliners outnumbered gainers, 121 to 97.

RI Gas Contracts Could Be Worth an Extra $6 Billion a Year
Indonesia could earn an extra US$6 billion in revenues per year if all natural gas selling contracts priced under $3 per million British thermal units (mmbtu) can be renegotiated, upstream oil and gas regulator BPMigas says. BPMigas chief Raden Priyono said the contract prices should be adjusted to current domestic market prices - between $5 and $6 per mmbtu. He added that if the renegotiation processes could be finalized this year, the additional revenue could be gained starting 2012. "Several gas buyers still purchase gas at between $1.60 and $1.80 per mmbtu [including state gas distributor PT PGN]. It doesn't show an appreciation to the gas producers," Priyono said in Jakarta on Tuesday.

Government to Maximize Oil, Petrochemical Refinery Construction
Jakarta - Chief economic minister Hatta Rajasa said the government would strive to reduce imports of oil and gas by maximizing construction of oil and petrochemical refineries in the country. "Our fuel oil imports are very high. Therefore development of petrochemical refineries is an urgent need. This is because we do not want our fuel oil imports to increase all the time," he said here on Tuesday. He said the oil or organic basic chemical refining industry would be one of the sectors that would receive a tax holiday facility. "That is why petrochemical and oil refineries will be one of the sectors to be given a tax holiday. We do not want imports to become bigger and bigger including imports of additives containing a large amount of fossil fuel-based lubricants," he said.

Islam in Indonesia: A Scholar's View
Historian, author and professor Michael Laffan studied Indonesian in high school in Australia before going on to study Arabic in college. Laffan wanted to connect the two topics and found himself "drawn into a necessary attempt to understand the religion that links so many people across the world today." His first book, "Islamic Nationhood and Colonial Indonesia: The Umma Below the Winds" (2002), examined the role of Islam in the Indonesian nationalist movement. Laffan recently spoke with the Jakarta Globe about his newest book, "The Makings of Indonesian Islam: Orientalism and the Narration of a Sufi Past," due to be released this month.

RI Navy Arranging Joint Submarine Exercises With Three Countries
The Indonesian Navy is in the process of arranging the holding of bilateral joint submarine exercises with three countries, namely the United States, Singapore and South Korea, the force's chief said. "We are making the necessary arrangements, and with the United States we expect to have an agreement in early 2012," Navy Chief of Staff Admiral Soeparno said here Monday. The exercises would be preceded by exchanges of submarine crews between Indonesia and those countries and the exchanged personnel would be familiarized with the submarines of the four navies, Soeparno said.

Friday, September 2, 2011
KUR Realization Almost Rp20 Trillion
The distribution of the people's business loan by state provincial development banks (BPD) has almost reached the government's target. The State Owned Enterprises Ministry's business services deputy Parikesit Suprapto, said that up to the third week of August, Rp19.28 trillion had been disbursed. "That is about 96.4 percent of the targeted Rp20 trillion," he said in a short message. The loan with an interest subsidy from the government was distributed to 1.32 million people.

Close to 100,000 Super Rich Indonesians By 2015: Report
Come 2015, Indonesia will be home to 99,000 wealthy individuals with a combined fortune worth $487 billion, according to a report. The Asia Wealth Report, published by the Julius Baer Group and CLSA Asia-Pacific Markets, predicted that Indonesia will see a 25 percent increase over a five-year period in terms of the number of High Net Worth Individuals (HNWI), individuals with $1 million or more in investable assets excluding their primary residence. This is the highest growth rate predicted among the 10 Asian economies in the report. The report covered Indonesia, China, India, Thailand, South Korea, Taiwan, Hong Kong, Singapore, the Philippines and Malaysia.

Borrowers Get Little Joy From BI Reforms
Consumers appear to have missed out on the benefits of a new central bank policy forcing major lenders to publish their prime lending rates. Evidence shows that there has been neither a decline in the interest rates charged by banks nor has there been a significant increase in the growth of lending. Instead, banks have used the policy, intended to foster greater transparency and competition, to cut overhead costs and fatten profit margins. Bank Indonesia in March introduced a requirement for the nation's 43 largest banks, about a third of the total, to publish rates for creditworthy customers.

Thursday, September 1, 2011
US Envoy Upbeat on Investment Prospects
Indonesia provides good opportunities for international investment, and US investors are interested in doing business in the archipelago because of its strong economic growth, the US ambassador has said. "Companies are looking more at the situation here in Indonesia, rather than what's happening in the US," Scot Marciel told reporters in Jakarta on Wednesday. "We have seen increase in both two-way trade and investment, so I think it's going quite well." Bilateral trade in the first sixth months of 2011 increased by 20 percent, and Indonesian exports to the United States could be up by more than 20 percent despite a slowdown in the US economy, he said. Investment from the United States into Indonesia will reach more than $1 billion this year, Marciel said.

News Focus: Idul Fitri Prayers Across Indonesia Proceed Peacefully
After successfully passing through a month-long Ramadan fasting month, millions of Indonesian Muslims across the country took part in peaceful Idul Fitri prayers on Wednesday. Before celebrating the Idul Fitri festivity to end the fasting month that hed been full of challenges and temptations, Muslims with their families and relatives packed mosques across the world`s largest Muslim nation. National Police Chief Gen Timur Pradopo said the Idul Fitri prayers across the country on Wednesday morning took place safely and orderly without any interruption. "The Idul Fitri prayers across the country are reported to have taken place safely and orderly because of the greatness of God," Pradopo said after joining the event at the National Police Headquarters` Bhayangkara Square.

Economic Dream Team Advises SBY on Riding Out Global Crisis
An economic committee advised President Susilo Bambang Yudhoyono last week on strategies for weathering the unfolding financial crisis in the United States, Europe and Japan. "Basically, the crisis management strategies submitted to the President were based on two scenarios," Indonesia Economic Committee (KEN) chairman Chairul Tanjung said last week. KEN called for crisis management during times of better economic conditions, Chairul said, but declined to provide details of the strategy the committee prescribed for dealing with worsening conditions.

Bali Named in World's Top 25 Fashion Capitals
Bali is traditionally known as a divine resort island. But who would've thought that it is also one of the top fashion capitals in the world? The Global Language Monitor has ranked Bali 21st in its list of the top fashion capitals in the world. The Island of the Gods even made it to the Top Movers chart with a staggering 11-place jump from number 32 last year. "The world is discovering the allure that has been a quiet secret for centuries," GLM, a Texas-based company that ranks cities' popularity based on the number of times they are mentioned online, wrote on its Web site.

Jakarta's One-Stop Shops for Coffee and Culture
In recent years, art exhibitions in Jakarta have not been limited to galleries. This effort to bring art closer to the masses has seen exhibitions held in all manner of public places, most prominently in shopping malls. While this approach has certainly helped artists reach a wider audience, old-school art connoisseurs have cringed at what they see as a process of commercialization. They bemoan the fact that art in shopping malls tends to get lost among the outlets selling luxury goods from Prada, Gucci and Louis Vuitton. Those who never warmed to the idea of art exhibitions in shopping malls can now let out a sigh of relief, as an even newer trend seems to have taken over Jakarta's art scene: Rather than moving paintings, sculptures and installations out of the galleries and into the malls, the owners of art venues have decided to lure visitors by integrating cafes and restaurants into their exhibition spaces.