Senin, 21 Juni 2010
Budget Surplus Increases on Lower Spending on Goods
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
Minggu, 20 Juni 2010
BI: Increased Electricity Tariffs to Trigger Inflation
“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.
Komnas HAM investigating alleged rights violations in SE Sulawesi
Vice Chairman of Komnas HAM Baubau Nurcholis said on Saturday a Commission team was visiting Talaga Raya to collect data and information about alleged land grabbing by PT Arga Morini Indah (AMI) for its mining operations.
"The National Human Rights Commission is collecting data and information on the alleged human rights abuses in the area," Nurcholis said.
He said that based on field studies, the local government and local people provided different information on the ownership of land in the area.
However, he said that his commission could not yet ascertain whether or not human rights violations had been committed.(*)
Source:
http://antaranews.com/en/news/1276955625/komnas-ham-investigating-alleged-rights-violations-in-se-sulawesi
C Sulawesi to attract 6,000 foreign tourists in 2012
Head of the Central Sulawesi Culture and Tourism Agency Suaib Djafar here expressed optimism that the target will be achieved with the support of hotels, restaurants, tourist agencies, airline companies, tourist objects, the media, the government and the public.
He said that in the last two years the number or foreign tourists to the region increased from 1,800 in 2008 to close to 4,000, with the support of a conducive security situation.
With regard to facilities, Suaib said, the local administration is increasing the capacity of Palu`s Mutiara airport scheduled for completion in 2011 and Garuda Indonesia and slated to open flights to the airport in July 2010.
(Uu.H-NG//A014/P003)
how-much cost will you spend when you have dining in indonesia
I think, this information is so informative if I publish here, at this blog. Because in my mind, I really believe everyone especially foreign tourists that want to go to Indonesia would like to know, how expensive the daily living cost in Indonesia. Okay, the first thing that you should know, you have to know your price in Indonesia most major currency, Indonesian Rupiah (IDR). When I write this post, 1 USD approximately same with 12.200 rupiah. So, I will continue it in IDR. Because I’m now living in Yogyakarta region, I will tell more daily life in this city, although I also know daily cost living in other cities such as Jakarta, Bandung, and many more.
My question is looks enough great I to hear, “How Much Price Will You Spend When You Have Dining in Indonesia?” Dining in my means is not only have dinner but I will tell also how much price will you spend (1 person) to eat daily food which most Indonesian people eat it. For you know, usually most people in Indonesia eat 3 times in a day, breakfast in the morning, lunch, and dinner. I assume you are like most Indonesian people, not go to restaurant for eat, do it yourself in your kitchen. For breakfast needs, usually they eat only for light food such as: fried rice, fried noodle, toast, bread and drink milk. The average cost to buy and eat those (I assume you only eat one kinds of food and drink milk) is 3000-5000 rupiah to eat fried rice or fried noodle and 2000-3000 rupiah to drink milk. That’s the cost will you spend if you are living in big cities in Indonesia such as Jakarta, Bandung, Yogyakarta and Surabaya. Next to lunch.
For lunch, they (Indonesian people) usually cook: rice, vegetables and meat. (meat in this means is chicken, meat, meat ball, fish, egg, Tahu and Tempe) additionally is fruit and drinking water. The cost is like this: rice is 1000 rupiah, and plus 2 kinds of meats (one egg, and one piece of chicken is 7000-10.000 rupiah) and 2 kinds of vegetables (spinach and vegetable soup is 5000-7500 rupiah). and the price for one bottle of milk is 2000-3000 rupiah. How much total price? Between 15.000 - 20.000 rupiah for just average lunch. What is it so expensive or instead of too cheap? Give your assessment.
The last one is for dinner. I assume you eat like Indonesian people eat for dinner, one cup of rice, 2 kinds of vegetables like chicken soup and corn soup, and 2 kinds of meat, like fried chicken and fried meat. The cost is: one rice is 1000 rupiah, 2 kinds of vegetables that I mentioned above is 5000-10.000 rupiah, and 2 kinds of vegetables is 10.000-20.000 rupiah. The total cost in approx 15.000 to 30.000 rupiah for just average dinner. Could you total the costs that from breakfast till dinner in Indonesia? I assume it as the average food which most people eat daily in some big cities in Indonesia. A price range from 40.000 to 70.000 per day just for eat per person, is it so expensive for you? What about in your country or county? Share this if you have time, thanks.
Sabtu, 19 Juni 2010
PKS coalition with Democrat not forever
"According to the law, a president in Indonesia may only govern for two terms and therefore PKS` coalition with the Democrat Party to support the government of President Susilo Bambang Yudhoyono will also last for only two terms of the present government," he told newsmen at the Ritz Carlton Hotel, the venue of am ongoing PKS` congress.
Hilmi said Yudhoyono offered a permanent coalition between his Democrat Party and PKS before he was elected president for the second time in 1999.
At the opening of the PKS` congres on Thursday, Hilmi said he had only reminded President Yudhoyono about his offer for permanent coalition and this was welcomed by the PKS.
For PKS, he said, what mattered was not whether the coalition would satisfy party board members but if it would benefit the people.
"We think the permanent coalition will be of much benefit to the people and therefore PKS supports the government through the coaltiion," he said.
He said the participation of PKS in the coalition`s joint secretariat was the implementation of the political contract made by coalition parties with President Yudhoyono.
The coalition that PKS had joined was a coalition of pro-reform parties, he said.
"God willing, the coalition will grow in strength. The coalition has worked in detail outlining what has to be done to develop the nation. So people should not be worried that it will become a political cartel because it will not," he said.(*)
Source:
http://gresnews.com/ch/News-En/cl/President+Yudhoyono/id/105579/PKS++coalition+with+Democrat+party+not+forever
Eleven Places You Must See in Bali
Bali is possibly one of the most enchanting island on earth. One of more than 13.000 islands in Indonesia, and Bali is revered as one of the world’s most popular and interesting tourist destination.
Some quick facts: Bali covers an area of 5620 km2, about 140 km from West to East and 80 km from the South to North. The South part consists of lime stone with beautiful soft white sand along the beach, while the East, West and North are mostly volcanic layers with black soft sand beach.
Bali has a tropical climate with the average temperature of about 30 degrees C (80 degrees F) all year. It has only 2 seasons, dry season started from April to October and wet season from October to April. It is always nice and cool in the hillside while though hot around the coastal area but there are still nice breeze all the time. The dry season is always sunny with great view of sunset and sunrise, while the wet season is not too wet because there is still much sun to enjoy during the day time.
Here are eleven things one must see if you are in Bali.
- Barong Dance – This is approx. 1 hour long religious dance representing the eternal fight between the good - Barong and the evil symbolized by a horrible looking witch called Rangda. The costumes and set are elaborate and nice. The trick is to get there early, so that you get front seats and be close enough to see the facial expressions of the dancers
- Celuk (Gold & silver smith), Mas (wood carving) and Stone carving villages - You would drive past these 3 villages and see the array of shops selling the gold, wood and stone. As you get into Celuk, all the gold and silver smith shops flank the roads, you can also drop by their factory to take a look at the production process. The same goes for the wood carving and stone carving
- Mount Batur (Kintamani) – This is the second largest active volcano in Bali. It is 1,717 meters from sea level, and bears the remains of the black lava from it's eruption in 1917 and 1927. There is a nice scenic crater lake there. You can do buffet lunch at one of the restaurant and admire the breath-taking view as you eat. The buffet lunch cost about S$10 and has reasonable spread
- Trita Empul - Tirta Empul means " bubbling water " and is a holy water temple built in 960 AD. The temple is beautiful temple and has holy water fountains for different purposes of purification and blessing. There were people in the fountains doing their purification when I was there. Further inside the temple area, you can see the source of the water – a spring where water is bubbling up through the black sand. A total make of nature. Legend has it that one of the gods shot an arrow from heaven to look for water, and the spot where the water is bubbling up now is the exact spot where the arrow hit
- Goa Gajah – Means "elephant cave". Found in 11th century, this cave was dug in the peaceful riverside valley in a hard sand stone. Entering the inside T-Shape cave, there are some niches used by Buddhist Monks for meditation. Among the many historical remains found around this cave is the holy Ganesh Statue (a human body with elephant head) which is believed as the God of Purification and Evil Controller. The cave can be quite claustrophobic for some people but is well worth a quick look inside
- Sebatu Holy Spring Temple - Is named " Gunung Kawi " in Balinese. It is a very beautiful village temple located in a peaceful valley with its holy spring. Somewhat similar to Trita Empul, there are large fountains outside the temple area, where villagers use to take a bath. However, my driver told me that this place is not as ‘holy’ as Trita Empul
- Taman Ayun - Is the largest Royal Family Temple Complex built in 1934 in the village of Mengwi, Badung Regency. The area of this temple is surrounded by moat with some water lilies and lotuses. The place is still used during prayer sessions and important ceremonial events
- Tanah Lot – One of the most famed temple in Bali. Tanah Lot means " the land of ocean" is a fascinating Hindu Temple built on a piece of cliff in Indian Ocean shore. This temple is dedicated to the God of Ocean "Baruna" built by a high Hindu Priest name Dang Hyang Dwijendra in the 16th century. During high tide, the cliff is surrounded by water and the temple looks like it is floating. In the bottom part of the cliff there is a fresh water holy spring while on the beach cave there are some holy snakes that guard the temple. In the South and North part of the temple is absolutely beautiful view and best for watching sunset
- Uluwatu Temple - Also built by the same Hindu Priest who built Tanah Lot, Uluwatu temple is also another magnificent temple built perched on a cliff. The whole temple stretches across a large area and it is flanked by the fabulous India Ocean. Here, you also see large numbers of monkeys, mostly mischievous ones, who snatches food from visitors
- Lake Beratan & Pura Ulun Danu - Beratan is a name of the Lake and Village. There is a spectacular floating temple called "Ulun Danu Temple" and is an absolutely interesting sight. The weather at the lake is cool, which is a nice break from the mostly hot sun during my trip. There were people who hired a traditional paddle boat or speed boat to go around the lake, although my driver said there really is nothing much to see around the lake
- Jatiluweh – A place where you see lots of terraced rice paddy fields. The sights are breathtaking as you see the green terrace, meandering around you. This place is supposed to one of the few in the world that has such nice terraced paddies. Those terraces are probably cut decades ago, and now resulting in the fascinating view today
http://www.articlesbase.com/destinations-articles/eleven-places-you-must-see-in-bali-485915.html#ixzz0rJKF5BML
Author: Shu Wei Wong
US Ambassador to speak at PKS seminar
The secretary of the PKS`s National Consultative Committee, Widiana Yudi, said here on Saturday the international seminar themed "American Views About Islam: Reflections on Obama`s speech on Islam in Cairo," was to take place at the Ritz Carlton Hotel on Saturday.
Yudi Widiana explained PKS wanted to elaborate on the views of the United States about the Islamic world as presented by US President Barack Obama in a speech in Cairo, Egypt, some time ago.
Other speakers apart from the United States Ambassador would be an observer of Indonesian problems, Professor Greg Fealy, and associate chairman of PKS Kemal Azis Stamboel.
The seminar would also be addressed by a member of the British Parliament from the Labour Party, Lord Adam Patel.
Mahfudz Sidiq, another PKS associate chairman, said the party had invited foreign speakers to the seminar to give PKS cadres wider perspectives on the West`s views on the Islamic world.
He said PKS from now ahead to position itself as an open party so that it should give its cadres ne insights.
The PKS National Congress is being attended by about 2,000 people.
Source:
http://gresnews.com/ch/News-En/cl/Ambassador/id/105567/US+Ambassador+to+speak+at+PKS+seminar
Govt Urged To Cancel Power Rate Increase Plan
Requests for cancellation or postponement of the plan among others come from the Regional Representatives Council (DPD), Indonesian Entrepreneurs Association (APINDO) and students.
The government`s plan to increase the gas price was making the people more confused and desperate.
"The community`s, in particular the poor people`s, access to electricity, must be secured. Their low economic capacity should not prevent poor people from obtaining electricity," Irman Gusman, chairman of the DPD, said on Friday.
Therefore, the government should not raise the power rates. It should also halt its plan to increase the prices of fuel oils and 12-kg cylinder gas.
The increase in the prices of the three commodities will make lower income people more confused and cause them to be at a loss on how to meet their daily needs, he said.
"The price increases will automatically be followed by hikes in basic food prices. Moreover, the number of vulnerable people in the country is still very high, and the price increases could make them fall into poverty," he said.
After all, the increase in the power rates will pose a threat not only to household consumers but also to businesses. According to the Indonesian Entrepreneurs Association (APINDO), the power rate increase will affect business world, particularly small and medium-sized entrepreneurs (SME).
"The increase in TDL rates would threaten the business world which is starting to improve, because it will increase the operating costs of the business sector," said Chairman of APINDO for South Sulawesi, La Tunreng said.
As regards, La Tunreng`s colleague, Purnomo Namiaji who is the chairman of APINDO for Bekasi, West Java, called on the government to postpone for the time being its policy to increase the tariff.
He said that state-owned electricity company PLN should postpone the tariff hikes particularly in the face of the fasting month and the post-fasting Labaran Day festivities.
"This is because the plan to raise the rates coincided with the fasting month of Ramadan and Idul Fitri festivities. In addition, the price of gas is also to be increased," Namiaji Purnomo said.
Purnomo admitted he was surprised with the tariff hike plan because businesses were most concerned about its domino effect. "It could cause layoffs or the closing of the company," said Purnomo.
Therefore, students grouped the Indonesian Muslim Student Action Union (KAMMI) are opposed to the power rate hikes, calling on the government to scrap the plan.
"We are opposed to the tariff hikes and call on the government to scrap it because it will have harmful social implications," Syamsul Maarif, KAMMI chairman for Bandung, West Java, said on the sidelines of a student rally against the policy on Friday.
Dozens of KAMMI students rallied in West Java on Friday to reject the basic tariff increase. According to Maarif, the government has never conducted an audit, and from time to time, the budget for PLN continued to go up despite the fact that it also continued to lose money.
In the face of this plan, the Indonesian Chamber of Commerce and Industry (Kadin) would soon form an advocacy team to study the basic electricity rate increase plan by the government next month.
"The establishment of the advocacy team is a form of concrete effort of Kadin in listening to the aspirations of the people who are PLN consumers," Vice Chairman of Kadin, Vishnu Wardhana said.
He said that tariff increase was very sensitive to a number of businesses because it would add to operating costs. "If the government increases TDL around 10 percent, production costs may rise to 33 percent and can lead to high costs," he said.
Vishnu Wardhana said that the advocacy team would consult and negotiate the government and PLN to discuss the amount of rate hikes.
The House of Representatives (DPR) and the government early this week agreed to increase TDL for customers of over 450-900 VA by between 6 and 20 percent, meaning that customers in the 450-900 VA categories would not be affected by the government`s new power hike policy.
In connection with the increase, President Susilo Bambang Yudhoyono called on the people to understand the government`s decision on electricity tariff hike. He said the decision which would only affect customers of above 450 watt power was taken to ease the burden of the national budget and so that the proceeds from the hike could be used for development efforts in other sectors.
"Almost one third of our budget is gone for subsidy and debt repayments. Our budget in 2010 totals Rp1,126 trillion with revenue totaling Rp992 billion leaving a deficit of Rp133 trillion," he said at a meeting with journalists at the presidential palace in Cipanas, Bogor, West Java, on Friday afternoon.
President Yudhoyono said if the government did not take a decision to cut the subsidy the burden of the budget would be very heavy to reduce the cost for education and health sectors.
"One third of the budget is gone for a subsidy totaling Rp201 trillion or one fifth of the national budget. Rp90 trillion is gone for gas and fuel subsidy, Rp55 trillion for electricity subsidy and the rest for others. It this is continuing our budget will stand," he said.
With the increase agreed by the House, the government still has to provide electricity subsidy amounting to Rp55.1 trillion.
"A limited price adjustment will be made and by excluding customers of 450 watt power the price will be raised by an average of 10 percent," the President said. (*)
Source:
http://gresnews.com/ch/News-En/cl/West+Java/id/105495/Govt+Urged+To+Cancel+Power+Rate+Increase+Plan
RI still pushing Israel to international court
"We demand for an impartial, transparent and neutral investigation according to the United Nations Security Council (UN SC) decision to ask for Israeli accountability," Foreign Minister Marty Natalegawa said here Friday.
There are several types of accountability that Israel would face, such as political responsibility if the matter is taken to the UN SC and international law sanction if it was done in an International Court of Justice (ICJ) trial, he said.
Certain case can only be proposed to the ICJ if it was approved by the relevant parties, whether Israel agreed to take the matter in international court or not, the minister said.
"As a matter of fact, Israel seems unwilling in taking the case to the international court, they seem to take the political responsibility through the UN SC," Minister Marty said.
The minister also said that the UN SC had called for an investigation which is still ongoing right now.
Due to the humanitarian aid which are now flowing into the Gaza Strip, it is the Egyptian policy that only allows aid goods or the humanitarian figure entering the Gaza Strip.
"It`s whether the goods or the worker enters the area, and it is not our decision to take, but the Egyptian government," Marty said. (*)
Source:
http://gresnews.com/ch/News-En/cl/Indonesian/id/105503/RI+still+pushing+Israel+to+international+court
Jumat, 18 Juni 2010
Malaysia Targets Indonesian Education Sector Through Franchise
Managing Director of Malaysia's Franchise Development Institute Syed Kamarulzaman Bin Dato Shahabudin said during the exhibition “If it is possible we want to place all the franchise business brought here, to Indonesia.”
Malaysia bring 14 franchise businesses to the exhibition, mostly from education, direct selling service, and technology inustrries. Two of which are state companies. Kamarulzaman said his government to promote franchises in education business, as it already has many food franchises operating in Indonesia.
About 160 companies from Indonesia, Malaysia, Singapore, and the Philippines participated in the exhibition.
Source:
http://www.tempointeractive.com/hg/ekbis/2010/06/18/brk,20100618-256507,uk.html
Hundreds of Companies Participate in International Franchise Exhibition
“This year, 160 companies from Indonesia, Malaysia, Singapore and the Philippines will participate in the event," said the Domestic Trade Director General, Subagyo, in his opening speech of IFRA at the Jakarta Convention Center (JCC), today.
In this event, franchise owners can meet with more than 18.000 potential investors.
The exhibition is expected to increase interest in the franchise business in order to and achieve the 12 percent growth target. As an example, as of June last year, around 42.900.000 franchise stores and business opportunities were registered.
Source:
http://www.tempointeractive.com/hg/nasional/2010/06/18/brk,20100618-256508,uk.html
Rabu, 16 Juni 2010
Pertamina asked to build fertilizer factory in Iran
"We are trying to invite Pertamina to enter that country," State Enterprise Minister (BUMN) Minister Mustafa Abubakar said on the sidelines of a joint meeting with the chief economic minister, the trade minister, the industry minister and a number of House commissions here on Wednesday.
Abubakar said that Pertamina was invited to build a fertilizer plant in Iran because the oil and gas company also had cooperated with that country in the development of an oil refinery plant.
At present, the BUMN ministry is considering to withdraw PT Pusri from Iran because the company is focusing its attention on the development of fertilizer plants at home.
PT Pusri and IPCI, an Iranian firm, have signed an agreement to build a fertilizer plant since 2007. The reason to choose Iran was that Iran has enough gas sources with a relatively cheap price.
Investment reached US$700 million, of which US$100 million came from the Islamic Development Bank and US$150 million came from the Iran Bank.(*)
COPYRIGHT © 2010
source:
http://gresnews.com/ch/News-En/cl/House/id/104342/Pertamina+asked+to+build+fertilizer+factory+in+Iran
Minggu, 13 Juni 2010
Jimly Asshiddiqie officially applies for KPK`s top post
He came to the Law and Human Rights Ministry`s selection team secretariat here on Monday to follow the administrative process for applicants.
The former chief of the Constitutional Court (MK) confirmed to the press that he was applying for the KPK top post that had been vacant for almost a year.
He said he was making the bid to meet the wishes and hopes of many people.
"It`s to meet an aspiration of the public," he said.
He said because he was a member of the Presidential Advisory Council, he had consulted President Susilo Bambang Yudhoyono on his intention to apply for KPK post.
"Because it`s my personnel choice," he said saying that the head of state did not mind. The council`s other members had also given him their approval.
Asshiddiqie is one of several names the Rectors` Forum had publicly mentioned as being qualified to assume the responsibilities of KPK chief.
A number of other people who had registered as applicants for the job included Henry Yosodiningrat, Otto Cornelis Kaligis, Yusuf Asyid, Pangihutan Nasution, Farhat Abbas, Alam P Simamora, Cacang S Murtado, retired major general Kivlan Zein, Police brigadier general Weni Warouw, and current chairman of the Judicial Commission Busyro Muqodas.
(Uu.F001/HAJM/1/P003)
COPYRIGHT © 2010
retrieved from:
Jumat, 11 Juni 2010
President Admits that Indonesia Lacks Credibility
Indonesian President Susilo Bambang Yudhoyono on Thursday acknowledged his country lacked credibility as it seeks billions of dollars in foreign aid to battle climate change.
He said Indonesia suffered a “trust deficit” in the international community that was hampering its ability to win backing for initiatives such as a moratorium on deforestation and cuts to greenhouse gas emissions.
“This is the reason for reform. We can turn the trust deficit into a trust surplus. Let’s be sure that the institutions in this country are credible,” he said in his opening remarks to a weekly cabinet meeting.
Indonesia is one of the top emitters of climate-warming gases blamed for rising global temperatures, largely through deforestation due to illegal logging and clearing for palm oil plantations.
Yudhoyono shocked environmentalists and palm planters alike last month when he announced a two-year moratorium on deforestation from 2011 in exchange for a billion dollars in aid from Norway.
But no one knows how the moratorium will be enforced in a country where experts say illegal logging is rampant and the government’s figures about deforestation rates and forest cover are seen as wildly inaccurate.
“All institutions in this country must be credible so that there are no obstacles when we seek cooperation with friendly countries and the international community,” Yudhoyono said, referring to the pact with Norway.
“I ask [ministers] not to be discouraged, not to be angry, that frankly the international community does not fully trust the institutions in many developing countries including ours ....”
Norway will offer aid from 2014 but only as long as Indonesia has made verifiable progress in halting deforestation.
The verifiability of such initiatives is crucial to broader UN-backed efforts to link developed-world climate change funds to forest conservation in developing countries like Indonesia.
“If there is no reduced deforestation, we will not pay. If there is reduced deforestation, we will pay,” Norwegian Prime Minister Stoltenberg told a press conference in Oslo as the moratorium was announced last month.
The United Nation’s Intergovernmental Panel on Climate Change estimates deforestation is responsible for 17 percent of global greenhouse gas emissions.
Agence France-Presse
Retrieved from:
http://www.thejakartaglobe.com/home/president-admits-that-indonesia-lacks-credibility/379811Kamis, 10 Juni 2010
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
Retrieved from:
http://www.blogger.com/post-create.g?blogID=4670571293636357961Rabu, 09 Juni 2010
World Cup Fever Infects Millions in Indonesia and Rest of Asia-Pacifi
From Seoul to Sydney, Beijing to Bangkok, preparations are underway for Friday’s kick-off thousands of miles away in South Africa, heralding a month of late nights and bleary-eyed mornings for many Asian fans.
“We’re expecting the hotel lounge to be full every night,” said Matthew Rashid, manager of the Equatorial in Kuala Lumpur, where many bars and pubs are already decked out with colorful bunting and posters.
“Everyone’s excited and I’ll wear a jersey to work throughout the World Cup,” said the Brazil supporter.
In South Korea, which takes on Greece on Saturday, giant screens are being set up in public squares, sports stadiums and other locations around the country for people to cheer on the national team.
On the other side of the world’s most heavily militarized border, North Koreans will be following a rare appearance by their side, who have qualified for the event for the first time in 44 years.
But they risk being left without any television coverage after Seoul refused to provide a free feed to its impoverished neighbor owing to tensions over the sinking of a South Korean warship in March.
In Tokyo, where interest in the sport has taken off since Japan co-hosted the 2002 World Cup, suited white-collar workers were among those taking a break from their hectic schedules for a screaming contest to warm up for kick-off.
The winner was a man whose cry of “goal” lasted for 32 seconds. For those who prefer just to watch, Sony will provide 3D images of the action at about 500 sites around Japan.
Pubs and bars in Bangkok — still reeling from the deadly “Red Shirt” protests — are hoping the event will tempt back the punters, despite a state of emergency, which in theory bans public gatherings of more than five people.
The authorities have reassured football fans they will not be arrested for watching the matches — even if they wear a red jersey.
“It’s no problem to wear a red shirt and cheer at the football as long as there are no guns involved,” said a Thai army spokesman.
Security will be particularly tight for kickoff at a Bangkok prison where inmates from around the globe are holding their own version of the World Cup.
Vietnam is also football obsessed and the hugely anticipated event is expected to all but bring daily life to a halt, while in Afghanistan foreign troops will be crowding around every available television.
Christoph Schmidt, a 31-year-old German-born US corporal in the 97th Military Police Battalion in Kandahar, had no doubts who he will supporting.
“I am definitely for Germany. There is no debate. The US might as well send their women’s football team,” he said.
At Casey Station in Antarctica, Australian scientists will tune in over the radio when their team play Germany on Sunday.
“They’ll listen to it but they can’t see it,” a spokeswoman told AFP.
Stung by the national side’s failure to qualify, Chinese fans can at least drown their sorrows while watching the matches at bars and parks across the nation, as well as at the South African pavilion at the World Expo in Shanghai.
While stock markets may see a dip in trading as investors turn their eyes to South Africa, bookies are expected to see a surge in turnover, even in countries such as Thailand and Cambodia where betting is illegal.
Yet while many businesses are happy to be infected with World Cup fever, others are bracing for a month of lost productivity.
Some workers may take “sickies” after the matches or come to work intent on watching replays, said Deb Loveridge, chief executive of New Zealand human resources company Randstad.
In Indonesia, civil servants have been warned of pay cuts if they fail to turn up on time over the next month.
“Imagine if football lovers come late every day to the office, how much money will we lose?” a Jakarta government spokesman said.
Agence France-Presse