Govt wants five fully-developed economic zones by 2014

Govt wants five fully-developed economic zones by 2014

Posted on June 22, 2010 by indonesianurbanfamily

 

Full story: www.antaranews.com

Jakarta (ANTARA News) – The government expects Indonesia to have at least five fully-developed special economic zones (KEK) by 2014, a minister said.

“Our priority is, up to 2014, there should be at least five (developed) special economic zones,” Coordinating Minister for Economic Affairs Hatta Rajasa said at his office here Tuesday after chairing a coordinating meeting on special economic zones.

The government is currently evaluating five special economic zones, and has set their development strategies, main design, development framework.

However, Rajasa declined to name the five special economic zones, only saying that they were located across the country, including in eastern Indonesia.

“I will mention them later, but for sure they include areas in East Indonesia such as Papua,” he said.

He explained that the country`s regional economic development is divided into economic corridors, within the corridors there are special economic zones (KEK), and within a KEK there are a number of clusters.
“So if we say Papua`s KEK, it includes clusters such as, of West Papua, Merauke, and Biak. We will encourage them to become fast growing areas,” he said.

He said 48 regions had previously applied to become special economic zones but they had all been turned down.

The current five special economic zones do not include Batam, Bintan and Karimun. The five KEKs would boost productions based on, among other things, marine, oilpalm, agriculture, mineral, coal, petrochemical.
“Eastern Indonesia such as Papua could set to be energy and food development hub, Java for manufacture, and Sumatra fro oil-chemical and minerals,” the minister said. The SEZ is a government-designated area in which companies enjoy various duty-free imports of raw materials and relaxed taxation.

Japan’s supermarket sales slump 5.3% on year in May

Posted on June 22, 2010 by indonesianurbanfamily

 

Full story: english.people.com.cn

According to the industry body, sales at stores open for a year or more fell 5.3 percent on year in May, with sales in the recording month totaling 1.02 trillion yen (11.2 billion U.S. dollars), marking an 18th successive month of year-on-year decline.

May’s figures follow a 4.9 percent slump recorded in April.

Sales at supermarket chains, including ones that have been opened for less than a year, fell 6.2 percent in May from a year earlier, according to JCSA, marking the 30th successive month of decline.

Along with economic factors, the association attributed inclement weather in the middle of the recording month as also negatively impacting consumers’ desire to spend.

JCSA compile their figures based on the combined sales at 62 supermarket chains which together operate 7,852 outlets.

The numbers have been adjusted to facilitate comparisons on a same-store basis.

Budget Surplus Increases on Lower Spending on Goods

TEMPO Interactive, Jakarta: The Finance Department reported rising budget surplus this year compared to the surplus recorded in the same period last year as due to lower spending on goods and capital goods in state departments and institutions.

Surplus soared over five fold to Rp60.3 trillion until May 15th from Rp11.7 trillion a year earlier.

Director genearl of Treasury of the Finance Department Herry Purnomo said up to June 15 state revenue was at Rp386.7 trillion or 39 percent of total projection.

Domestic revenue is at Rp385 trillion, which consisting of tax and non tax revenue. Reported tax revenue is Rp300.5 trillion which made up of domestic tax Rp290.4 trillion and international trade taxes Rp10,1 trillion. While non tax revenue is at Rp85.9 trillion and revenue from grant at Rp167.3 billion.

On the other side of the balance, total spendings until May 15th is at Rp326.3 trillion.

Central government have spent so far about Rp198.7 trillion, regional government Rp127.6 trillion. State employees expenditures is at Rp62.3 trillion, spending on goods Rp25.5 trillion and spending on capital goods at Rp14.4 trillion.

Lower spending on goods or procurement according Vice Finance Minister Anny Ratnawati was caused by slow disbursement and tender process.


IQBAL MUHTAROM 

BI: Increased Electricity Tariffs to Trigger Inflation

TEMPO Interactive, Jakarta:The Deputy Governor of Bank Indonesia (BI), Hartadi A. Sarwono, said he expects that the increased electricity base tariff wills trigger inflation by a maximum of 0.5 percent.

“The increase is not too high, it is still within the BI inflation target,” he said yesterday.

This year BI target inflations of 4-6 percent. Added to inflation due to increased electricity tariff, Hartadi predicts that yearly inflation reach 5.5 percent.

As is already known, the government and the House of Representatives have agreed to increase the electricity base tariff on July 1 2010.

BI, he said, could hold inflation rate as targeted by guarding monetary policy.

Meanwhile, the Director of Energy & Utilities at Fitch Asia-Pacific, Simon Wong, said he considered that the approved tariff increase was positive for PLN, because it will increase operational margins.

BI predicts forex reserves to reach US$81 billion

Jakarta (ANTARA News) - Bank Indonesia predicts the foreign exchange reserves would reach US$81 billion by the end of this year following continued improvement in the country`s economic growth.

"We are predicting the foreign exchange reserves will reach above US$80 billion by the end of this year or at least US$81 billion depending on the global economic situation," the central bank`s governor Darmin Nasution said here on Wednesday.

BI deputy governor Budi Mulya meanwhile said based upon BI`s exercise last month the foreign exchange reserves could reach more than US$81.3 billion or more than 6.4 months of imports and payments for the government`s short-term debts.

Darmin said until May Indonesia`s foreign exchange reserves reached US$74 billion and is predicted to continue to rise following the country`s good economic fundamentals compared to those of other countries.

"With the higher economic growth and better interest rates compared to those in developed countries capital inflows would continue," he said.

He said however that it was not impossible for the positive sentiment to be hampered by events that could create negative sentiment in the market such as the recession event in Dubai which was continued in Greece.(*)

source:
http://gresnews.com/ch/News-En/cl/Indonesias/id/104362/BI+predicts+forex+reserves+to+reach+US81+billion

IMF Puts Indonesian Growth at 6 Percent in 2010, 2011

By: Neil Chatterjee & Gde Anugrah Arka

The International Monetary Fund on Thursday forecast Indonesia’s economic growth will accelerate this year amid improving investment and said the central bank may need to adjust its monetary policy if price pressures rise.

The Fund also said after meetings in Jakarta with Indonesia’s central bank and other officials that recent capital outflows from Indonesia were likely to be temporary and it saw small downside risk from the euro zone debt woes.

“We see growth accelerating to 6 percent and we think inflation will be contained at under 5 percent,” Thomas Rumbaugh, the IMF’s division chief for Asia and Pacific, told reporters.

Southeast Asia’s biggest economy expanded 4.5 percent in 2009, among the few countries in Asia to have posted growth during a period of global recession, thanks to resilient domestic demand.

Drawn by its strong growth prospects, investors have poured into Indonesia’s bonds, stocks and its currency, the rupiah, in the past year, when its markets saw stellar gains. The stock market is up nearly 10 percent so far this year, one of the best performers in Asia.

Rumbaugh said demand and commodity price pressures could start to rise and lead to slightly higher inflation in the future, requiring a policy response from the central bank, Bank Indonesia.

“We don’t see the need for it yet ... later in 2010 they may need to prepare to adjust monetary policy if inflationary pressures increase,” Rumbaugh said.

Indonesia’s annual inflation in May accelerated to 4.16 percent, its highest level in a year, as food prices picked up, and was in line with expectations.

A Reuters poll in April predicted Indonesia’s economy to expand 5.8 percent this year and 6.1 percent next year. The poll also forecast Indonesia’s year-end inflation at 4.9 percent this year and 6.0 percent next year.

Since late 2009, central bank officials have stressed that they saw no reason to raise interest rates as they expected inflation to be within their 4-6 percent target range in 2010.

Analysts, however, expect rate hikes by the third quarter this year and see Bank Indonesia as potentially behind the curve.

Deputy governor Hartadi Sarwono said on Wednesday that the central bank may need to raise interest rates to 7 percent next year after keeping them on hold at a record low of 6.5 percent this year.

The comments were the first by the central bank on the timing and scale of any rate rises that will likely be aimed at curbing inflation, and come after the country’s finance minister said last month rates could stay at 6.5 percent through 2011.

Indonesia’s bond yield curve has steepened in the past two weeks as a result of lower yields on the short end of the curve, which analysts said suggested increased market expectations of a near-term benign rate outlook.


Reuters

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