Indonesia Economy Forum

[Nike]

Palm Stockpiles in Indonesia Seen Falling to Lowest in One Year


By Bloomberg on 2:40 pm July 15, 2013.
Category Business, Commodities
Tags: Indonesia palm oil, palm oil

A worker holds a handful of palm oil seeds in Serba Jadi, East Aceh, on December 11, 2010. (AFP Photo/Sutanta Aditya)


Palm oil inventories in Indonesia, the world’s largest producer, probably dropped in June to the lowest level in a year as domestic consumption and exports gained to meet increased demand for the Muslim month of Ramadan.

Stockpiles contracted 7.7 percent to 2.4 million tons from May, the median of estimates from five plantation executives and a refiner compiled by Bloomberg showed. That’s the lowest since 1.85 million tons estimated in June 2012. Shipments rose 2.2 percent to 1.86 million tons compared with May, the median showed. Output gained 19 percent to 2.38 million tons from May, according to the median of five estimates.

Palm oil has lost 27 percent in Kuala Lumpur over the past year as supply of the commodity used in everything from cooking oil to biofuel outpaced demand. Reserves in Malaysia, the second-largest producer, dropped to lowest level in two years in June as output in the country’s biggest-producing state fell.

“Domestic consumption is increasing,” said Derom Bangun, chairman of the Indonesian Palm Oil Board. “I think exports marginally increased after a surge in May and, as stockpiles in India are also quite high, they’re adjusting imports with the reserves that they have.”

Communal meals during the fasting month of Ramadan, which started on July 10 in Indonesia this year, typically boost total palm demand. The Southeast Asian nation is the world’s most populous Muslim country.

Lower prices

Palm oil futures dropped as much as 1.8 percent to 2,260 ringgit ($709) a ton on Bursa Malaysia Derivatives today, the lowest level since May 7. The contract for September traded at 2,268 ringgit at 11:27 a.m. in Kuala Lumpur.

The Indonesian association, which doesn’t publish output and inventory figures, may release export data this week after saying June 19 that shipments climbed 22 percent in May. The forecasts for changes in reserves and production in June were derived by Bloomberg compared with earlier survey findings.

Second-quarter consumption in Indonesia expanded 11 percent compared with the first quarter, said Sahat Sinaga, executive director at the Indonesian Vegetable Oil Industry Association. Local demand was also driven by biodiesel use, he said.

Exports “may increase in July and August as rising crude oil prices will boost biofuel demand,” Bangun said. “It’s price-supportive. I’m optimistic palm oil will rise gradually.”

West Texas Intermediate crude climbed to 15-month high of $107.45 a barrel in New York on July 11. Futures have advanced 15 percent this year.

Inventories in Malaysia fell 9.4 percent to 1.65 million tons in June from May, the lowest level since March 2011, the country’s palm board said July 10. That was less than the median estimate of 1.75 million tons in a Bloomberg survey. Output rose 2.3 percent to 1.42 million tons, while exports gained 0.3 percent to 1.41 million tons.

India’s cooking oil stockpiles were 1.98 million tons on June 1 from 1.69 million tons a year earlier and a record 2.12 million tons in March, according to the Solvent Extractors’ Association of India.

Bloomberg

Palm Stockpiles in Indonesia Seen Falling to Lowest in One Year - The Jakarta Globe

Lower Beef Prices Expected as Second Cattle Shipment Departs from Australia


By Jakarta Globe on 3:04 pm August 1, 2013.
Category Business, Commodities
Tags: Indonesia cattle beef
Indonesia is expecting the second shipment of live cattle from Australia to arrive this Sunday to help curb rising prices around the Idul Fitri holiday.

Indonesia’s Ministry of Trade has allowed imports of an additional 25,000 heads of live cattle over the next three months to curb beef prices, which have climbed to around Rp 100,000 ($9.7) per kilogram as demand spikes during Ramadan.

The figure includes 12,500 ready-to-slaughter cattle expected to arrive from Australia between July 31 and Aug. 13.

The first shipment from Darwin saw 1,478 ready-to-slaughter cattle arrive at Tanjung Priok Port in North Jakarta on Wednesday.

The second shipment, which consists of 4,817 cattle, left Darwin on Jul. 29 and is expected to arrive at Tanjung Priok on Aug. 4, the Indonesian consulate in Darwin said in a press statement on Thursday.

“The next shipments of ready-to-slaughter cattle … have been scheduled for July 31 and Aug. 1,” the statement said, adding that all the imported cattle would have to pass biosecurity checks by veterinarians in Darwin before their shipment to Indonesia.

In a bid to promote its domestic beef market, Indonesia slashed its import quota for live cattle by more than a third in 2012 and by another 30 percent for 2013. The beef-import quota was cut by nearly two-thirds in 2012 and by 6 percent for 2013.

http://www.thejakartaglobe.com/business/lower-beef-prices-expected-as-second-cattle-shipment-departs-from-australia/
The total beef-import quotas for 2013 were set at 32,000 tons, of which approximately 20 percent consisted of prime cuts, while the live-cattle import quota was set at 267,000 heads of cattle.

In the wake of rising beef prices in Ramadan, Trade Minister Gita Wirjawan said last month that additional beef and cattle imports outside the earlier-agreed-upon quota would only be allowed if local prices spiked by more than 15 percent.

The Indonesian Feedlot Association separately said prices were expected to return below Rp 80,000 per kilogram with the import of the 25,000 heads of cattle.

 

[Nike]

Chasing the Indonesian Dream


By Shoeb K Zainuddin on 10:15 am June 4, 2013.
Category Analysis, Business
Tags: Globe Asia Rich List, Indonesia economy, wealthy Indonesians
Property, banking and consumer tycoons have replaced natural resource magnates on the top of this year’s GlobeAsia 150 Richest Indonesians list. A booming economy, rising middle class and higher per capita income are helping fuel a spending binge that is creating new wealth and giving rise to the Indonesian dream.

To say that Indonesia’s property sector is hot would be an understatement. For the likes of Harry Gunawan, a Medan-based spare parts trader turned property developer, it is his passport to fame and fortune. Sharply rising property prices over the past few years have created a new breed of multi-millionaires as those with large land holdings or ability to build large-scale developments have benefited.

Over the past few years, Harry has invested heavily in the property market, starting off with small stakes in Senayan City and the Peak apartments on Jl. Jend. Sudirman in Jakarta, he is now developing a major mixed-use project along Jl. Gatot Subroto. Today, his property projects are estimated to be worth around $100 million.

Jeffrey Hong, an adviser to Property Connection, a property consultancy, says property prices have risen by 100 percent over the past 18 months and look poised for further gains. “If everything goes well with the next election, the property market will take another bounce up,” he said. “The number of projects in the pipeline is tremendous as every major developer wants to get in now.”

Tycoons with listed property companies have also done well as the property sector has been the best performer on the Indonesian Stock Exchange, outperforming the market by 50 percent. Many of them are using this golden opportunity and strong investor interest to raise more funds for expansion.

What is behind this unprecedented property boom? “It’s a combination of an all-time low mortgage rate, growing GDP per capita and a rapidly growing middle class,” notes Harry Su, director at Bahana Securities. “Everybody is buying property as an inflation hedge as there is a lot of liquidity on the ground.”

Harry adds the property boom will continue for the next two to three years with all segments likely to experience strong growth. Record levels of foreign direct investments have, for example, fueled strong demand for industrial property.

This is good news for property tycoons such as Ciputra, Mochtar Riady (the Riady family owns Lippo Group, parent company of The Jakarta Globe), Trihatma Haliman (now a billionaire), and the Widjajas of Sinar Mas Group as all of them saw their net worth rise significantly in this year’s GlobeAsia 150 Richest Indonesians list.

With one of the largest land banks in the country – both for property as well as plantations – Eka Tjipta Widjaja’s net worth rose by $600 million. Still, the patriarch was displaced by Robert and Michael Hartono of the Djarum Group as the richest men in Indonesia. The two brothers saw their net worth rise by a staggering $3.7 billion, primarily because of the sharp rise in the stock price of Bank Central Asia (BCA).

The Hartonos have benefited from a double bounce of rising property prices as well as a 17 percent year-on-year rise of the Jakarta Composite Index. Their acquisition of BCA, the country’s largest private bank, back in 2001 for $398 million was clearly a prescient move. Not only has its share price risen, the bank also announced strong profits for the past 12 months.

“If you are a banker in Indonesia today, you are minting money,” notes Fauzi Ichsan, Indonesia economist at Standard Chartered bank. “Share prices of most listed banks have gone up crazily, but so has lending and profits.”

Anthoni Salim may no longer own a bank, having lost BCA during the 1997 financial crisis, but his move into the property sector has paid handsome dividends. The head of the Salim clan has been acquiring land over the past decade and now has one of the largest property land banks in the Greater Jakarta region. As a result, he saw his net worth rise by $1.6 billion to $10.1 billion.

Spending binge

A robust economy growing at above 6 percent per annum has also created wealth across diverse sectors from banking to manufacturing, investments and consumer products. Indonesians, armed with greater spending power, have gone on a buying binge, snapping up just about anything they can lay their hands on.

And this buying spree is likely to continue for the next 20 years. The country’s middle class is expected to grow by 90 million consumers by 2030, according to McKinsey & Company. For consumer companies that will mean an additional $1 trillion in annual spending by increasingly sophisticated consumers.

“Any entrepreneur that sells goods and services to the middle class and has good brand recognition is going to do well,” says Standard Chartered Bank’s Fauzi. “From consumer gadgets to cars to cement, anyone who bets on the rising middle class and domestic spending stands to gain.”

With a growing consumer base, Indonesia is now viewed as both a manufacturing base as well as one of the fastest growing markets in Asia. Both foreign investors as well as domestic players are busy setting up manufacturing plants and even industries such as textile and shoes are booming.

HM Lukminto, founder of the Sritex Group (No. 52 on the list) is one man who is smiling all the way to the stock market. He plans to sell 5.6 billion shares or 30.12 percent of Sritex’s total equity through an Initial Public Offering in late May. Born into a poor family in Kertosno, East Java, he has pulled himself up by the bootstraps and created a thriving business.

Lukminto, too, reflects the Indonesian dream of a poor man made good by sheer hard work and entrepreneurial spirit. Textiles were once seen as a sunset industry, but a huge displacement out of China has given the business a second wind. Today, Sritex supplies major global retailers, such as Uniqlo., who are looking at Indonesia as a major supplier.

Sun setting on coal?

As consumer industries rise on the back of a robust economy, others are seeing their fortunes and outlook diminish. One of the hardest-hit sectors over the past two years has been coal mining, as global prices have dropped sharply and demand slowed.

Coal prices have fallen 7 percent year-on-year, continuing the 17 percent fall in 2012. China, which once used to suck up Indonesian coal, is today producing 10 times more than Indonesia and has huge reserves.

Indonesia’s infrastructure bottlenecks also make transportation more costly and local miners less competitive. Just three years ago, just about every major tycoon was rushing to buy a coal mine but today many coal mine owners are looking to diversify.

“I think coal is a sunset industry,” says Bahana’s Harry Su. “In the developed countries people are switching to gas and shale. Technology is the greatest single threat to the coal industry and energy companies.”

As such, he adds, the switch from natural resources to consumer sectors is real within the larger Indonesian economy. Yesterday’s coal kings, while still among the richest in the country, are falling down the list while consumer and property kings are rising.

That is the essence of capitalism and the free market. Money will flow to where the greatest opportunities lie, and in today’s Indonesia — the consumer is king.

Richest Indonesians

 

[Nike]

Car Industry Keeps on Revving Its Engine


By Harso Kurniawan on 9:28 pm August 5, 2013.
Category Business, Featured
Tags: Idul Fitri, Indonesia automotive industry, Indonesia car sales, Mudik

As anyone stuck in mudik traffic this week will tell you, the number of cars on Indonesia’s road appears to be growing.

But by how much? A senior automotive executive has put the number of new cars sold for the first seven months of the year at 700,000, following a 12 percent increase on sales in the first half of the year.

Amelia Tjandra, the marketing director at distributor Astra Daihatsu Motor, said the July figure was boosted by discounts and sales promotions ahead of this week’s Idul Fitri celebration.

While Amelia declined to reveal the size of the increase on last year, earlier data released by the Association of Indonesian Automotive Industries (Gaikindo) said sales were up 12 percent to 601,952 units in the first half of the year.

The industry body, which counts 42 manufacturers among its members, has forecast car sales this year to hit 1.1 million units, matching last year’s result and suggesting a slowdown in the second half of the year.

But Johnny Darmawan, a deputy chairman of Gaikindo, said if car manufacturers can boost supplies to dealers, car sales this year could reach 1.2 million units.

Johnny said the automotive industry in Indonesia faced significant challenges this year. He expressed concern that inflation and the weakening rupiah will prompt Bank Indonesia to further increase its key overnight interest rate, the BI rate.

The central bank has increased the BI rate twice by a total of 75 basis points to 6.5 percent in its past two policy rate meetings. This drives up lending interest rates, making it more experience to finance car purchases. Around seven in 10 car sales in Indonesia is facilitated through a loan.

Car distributors have also had to grapple with a policy shift last year in which the government increased the minimum down payment for consumers on car loans, in a bid to prevent irresponsible lending.

Car demand is also being hampered by the global economic slowdown, causing some commodities-producing regions in Indonesia to reduce vehicle purchases.

But Johnny said stable economic growth and rising consumer purchasing power would fuel demand for cars.

“Our economy is driven by domestic consumption. As long as there are consumption activities, the car market will continue to grow,” Johnny said.

Indonesia recorded total sales of 1.1 million cars in 2012, when the economy expanded by 6.2 percent.

Amelia said car sales were likely to grow further this year, boosted by the Indonesia International Motor Show in September. IIMS is an annual exhibition in Jakarta at which domestic and foreign carmakers present their products.

Several Japanese carmakers have recently announced their intention to boost their presence in Indonesia, a market long dominated by Japanese cars.

In their home country, Japanese automakers are faced with a shrinking population and stagnant growth, reducing opportunities to expand.

Toyota Motor, which dominates the Indonesian market, aims to make Indonesia an automotive hub and plans to build a new car engine plant in Karawang, West Java, through an investment of 23 billion yen ($234 million).

The new plant, scheduled to begin operations in 2016, will have an annual production capacity of 216,000 engines.

Meanwhile, competitor Suzuki Motor is investing 60 billion yen to develop a new passenger car plant in Indonesia.

Car Industry Keeps on Revving Its Engine - The Jakarta Globe

 

[Nike]

Daihatsu to Expand Manufacturing Capacity on Passenger Car Engines


By Jakarta Globe on 9:23 pm August 5, 2013.
Category Business, Corporate News
Tags: Auto industry, Daihatsu, Japanese carmaker
Daihatsu Motor, one of Japan’s biggest car makers, announced its plan on Monday to expand its car engine manufacturing plant in Indonesia.

The company said in a statement that it will extend its production line for passenger car engines at its Astra Daihatsu Motor Indonesian subsidiary where the annual production capacity is estimated at 200,000 engines.

“The extended line is scheduled to run from the summer of 2015,” Daihatsu Motor said.

The expansion is an attempt to further boost Daihatsu’s operations within Indonesia, its key international business location. Its move follows recent expansion plans by rivals including Toyota Motor and Suzuki.

Daihatsu Motor said that such an extension plan is meant to boostits operations in Indonesia where it hopes to gain more of share within the competitive automotive market. The company didn’t disclose the amount of investment in the extension plan.

ADM, which is 61.75 percent owned by Japan’s Daihatsu Motor, 31.87 percent by Astra International and 6.38 percent by Toyota Tsusho Corporation, currently employs 11,000 workers at its Karawang manufacturing plant located about 75 kilometers east of Jakarta. Some of ADM’s brands include Sirion, Terios and Xenia.

Indonesia — along with Brazil, Russia, India, South Africa and China — has become one of the hottest emerging markets for car makers.

More than 1 million cars were sold last year in Southeast Asia’s largest economy, and despite the increase of subsidized low-octane gasoline by 44 percent to Rp 6,500 (65 cents) and subsidized diesel by 22 percent to Rp 5,500 on June 22, cars sales by some estimates are expected to double in the next three years.

The McKinsey Global Institute said an additional 90 million people will join Indonesia’s consumer class by 2030. The country by then could overtake Britain as the seventh-largest economy, according to a Reuters report in early July.

In Indonesia, the automotive market is still dominated by Astra International, the biggest automotive distributor.

Astra, which operates six business division including the automotive division, posted a 9 percent slide last week in first-half profit as commodity prices dragged down income and automotive market competition intensified.

In a statement, the company said its net income in the first half of the year fell to Rp 8.8 trillion. Meanwhile, its revenue slipped 2 percent to Rp 94.3 trillion.

Daihatsu to Expand Manufacturing Capacity on Passenger Car Engines - The Jakarta Globe

 

[Nike]

Light at End of Account Deficit Tunnel, Says Central Bank


By Grace Dwitiya Amianti on 9:13 pm August 5, 2013.
Category Business, Economy
Tags: Bank Indonesia, Indonesia current account deficit
The central bank says Indonesia can expect a substantial narrowing of the current account deficit in the third quarter, despite the figure widening to an all-time record of $9 billion this month.

Bank Indonesia said the current account deficit for the April-to-June period was at 3.6 percent of the country’s gross domestic product, up from the 2.4 percent of GDP — $5.3 billion — deficit registered in the first quarter.

Central bank Deputy Governor Perry Warjiyo blamed the situation on June’s subsidized fuel price hike, and said he expected the current account deficit to drop substantially to $7 billion in the third quarter as import demand usually slowed in the period.

Perry told reporters on Friday that the central bank expected the current account deficit to be 2.5 percent this year and next year, as the country still needs to import capital goods to support its growth.

“The deficit, [at] 2.5 percent, is still manageable and natural because we’re still growing,” Perry said. “The impact of rising subsidized fuel oil prices has yet to show up in import figures.”

Economists said the country’s strong oil and gas import demand, which has pressured the rupiah, would be curbed by the fuel price hike.

“We expect a better performance in the oil trade in the coming months, as we keep an eye for the effect of the subsidized fuel price hike implemented in June to materialize. Imports of oil products may come down substantially,” Bank Danamon Indonesia economists Dian Ayu Yustina, Anton Hendranata and Anton Gunawan wrote in a research note.

Danamon’s economists said the current account deficit will put pressure on the rupiah in coming months especially as demand for dollars rises approaching the hajj pilgrimage season in October. The rupiah has already weakened by 6.4 percent this year, making it the second-worst-performing currency in Asia after the Indian rupee.

Still, the Danamon economists expect the current account deficit to improve slightly across the rest of this year and reach 2.5 percent of GDP.

“If the negative external sentiments recede and the external balance [is] able to adjust, the rupiah can still strengthen to Rp 9,926 per US dollar by year end,” they said.
http://www.thejakartaglobe.com/business/light-at-end-of-account-deficit-tunnel-says-central-bank/

Maybe i will bought a new note book by end of this years, just can't wait till the value of US Dollar is drop

 

[Nike]

Bank Indonesia Prepares Rp 103t in Ramadan Cash


By Grace Dwitiya Amianti on 10:29 am August 5, 2013.
Category Business, Economy, Featured
Tags: Bank Indonesia central bank, Idul Fitri, Islamic fasting month Ramadan

Bank Indonesia has prepared to distribute up to Rp 103.1 trillion ($10 billion) in cash to support Ramadan and Idul Fitri, which marks the end of Ramadan, a central bank official said on Friday.

Lambok Antonius Siahaan, executive director of the money management department at the central bank, said this year’s cash preparation is 24.6 percent higher than the cash needed in last year’s Idul Fitri, as consumer purchasing power increased.

Approaching Idul Fitri, millions of Indonesians usually travel back home or to visit relatives, typically spending large amounts of money.

Of the total figure, Rp 64 trillion — or 62 percent of the total cash that is ready to be disbursed across the nation — will be circulated in Java, Indonesia’s most populous island and the center of its economic activity.

Lambok said this year’s cash needs had increased following the government’s increase in the price of subsidized fuel, the disbursement of temporary direct cash assistance as well as additional income provided to civil servants.

Apart from providing cash, Bank Indonesia has also prepared the nation’s banking system for non-cash payments.

“During Ramadan and Idul Fitri, the volume of transactions of both [cash and non-cash] typically increases by 14 percent above the normal rate,” said Peter Jacobs, a communications director at Bank Indonesia.

In a bid to accommodate a higher level of non-cash transactions, the maximum transfer of funds cleared through banks since May 1 has increased to Rp 500 million per transaction.

Meanwhile, a number of big banks have already announced their cash preparation to support Ramadan and Idul Fitri festivities.

Bank Mandiri, the biggest lender by assets in the country, for example, is ready to distribute Rp 43.42 trillion in cash.

Bank Central Asia, the third-largest lender, has set aside Rp 50 trillion.

Bank Rakyat Indonesia, the second-biggest, Bank Negara Indonesia, the fourth-biggest, and Bank Tabungan Negara, the biggest mortgage lender, have prepared Rp 33.4 trillion, Rp 29.8 trillion and Rp 20.7 trillion, respectively.

Hery Gunardi, director of micro and retail banking at Bank Mandiri, said the lender has formed a team to ensure the availability of cash at its automated teller machines. Bank Mandiri has 11,454 ATMs across the country.

Lambok of Bank Indonesia said that, in a bid to smooth out cash distribution, the central bank would be cooperating with the navy in an effort to bring cash to smaller islands.

He said central bank officials can use navy ships to bring cash.

“This will be very helpful. In the momentum of a big festive, usually the public needs of cash increases,” Lambok said.

A. Prasetyantoko, chief economist at BTN, said Idul Fitri and the annual travel that is typically generated helped distribute wealth across more regions.

“If people go back to their hometowns, automatically the money flows into the regions and therefore distribution of money will be spreading out,” he explained.

“It can stimulate the local economy,” he added.

The Jakarta Transportation Agency has predicted that a total of 9.7 million citizens would make the journey from the Greater Jakarta area to their respective hometowns for Idul Fitri, which will fall on Thursday. Thirty million people across the country are expected to make the trip this year.

The exodus from the cities was expected to reach its peak on Sunday and today.

Bank Indonesia Prepares Rp 103t in Ramadan Cash - The Jakarta Globe

It will be great festive in Indonesia, mass exodus, empties cities, Jakarta will be the best place to wander around during Eid

 

[nufix]

Singapore loses much more than Indonesia in DBS decision


INDONESIA - The sudden changes in the bank ownership rules made by Bank Indonesia only three months after Singapore's DBS Bank announced in April 2012 its plan to acquire Bank Danamon, the sixth largest bank in the country, caused the deal to collapse on Wednesday.

DBS, Southeast Asia's largest bank by assets, announced it had dropped its plan to acquire Singapore government investment company Temasek's 67.40 per cent holding in Danamon because it was allowed to initially hold only 40 per cent of the bank, as required by the new rules.

Singapore lost a lot, especially in the run up to the ASEAN economic community in 2015. Indonesia, on the other hand, only lost a little in what seemed to be a short-sighted decision by DBS.

The corporate decision by DBS may not bode well for its rapport with Bank Indonesia. Neither did that move seem to bear the hallmark of Piyush Gupta, the usually visionary CEO of DBS. That decision also would not augur well for the seemingly "perpetual" testy relations between the two governments, taking into account the official stamp in both DBS and Temasek.

True, a minority stake is certainly less attractive as DBS will not be able to fully steer Bank Danamon in the direction it desires.

But the US$7.2 billion (the value of the original deal) question is why DBS did not feel comfortable with the initial deal, while waiting for an eventual controlling ownership - which is still allowed by Bank Indonesia under certain conditions tied to good corporate governance and financial health.

After all, even after the initial deal, the other major shareholder in Danamon will remain to be Temasek, which also controls DBS through its subsidiaries.

Despite the requirement for DBS to put up more core (Tier 1) capital, as required by the capital adequacy rules of the Basel-based Bank for International Settlement, a 40 per cent holding in Danamon, one of the most profitable and best-managed banks in Indonesia, is still quite strategic for boosting the pace of DBS' operation, growth in the country.

Depending only on organic growth through its wholly-owned subsidiary Bank DBS Indonesia will take a very long time to expand across the vast archipelago.

The short-sighted decision to cancel the deal will cause DBS to lose the momentum to grow robustly in Indonesia, which is still the most lucrative banking market and most profitable lending market in the region.


Where else could DBS get an average lending margin of almost 7.5 per cent, four times larger than in Singapore and where else DBS could find a market in the region with such a huge potential, other than Indonesia, the $1 trillion economy with a population of more than 240 million.

There is indeed uncertainty about the chance of eventually gaining controlling ownership of Bank Danamon because it depends on Bank Indonesia's discretionary power - the assessment of DBS corporate governance rating and financial health.

But why should DBS, well known for its excellent corporate governance and strong financial health, worry at all about those requirements. It will never be able to become a leading bank in Asia without having a strong footing in Indonesia, India and Hong Kong.

For DBS, the acquisition will give it access to Danamon's more than 3,000-branch network that serves over six million customers, larger than the population of Singapore.

The Monetary Authority of Singapore (MAS) also seemed too rigid in responding to Bank Indonesia's demand that DBS' acquisition of Danamon is tied to wider access for Indonesian banks to enter the Singaporean market.

Since Singapore needs Indonesia much more than the other way around, we cannot understand why MAS did not make the terms easier for Indonesian banks to enter Singapore. They would not pose any significant challenge to Singapore's banks nor the other giant international banks in the city-state.

MAS may be worried a compromise for Indonesia with regards to the terms for foreign bank entry could set a precedent for other countries to demand similar treatment.

But the three local banks, DBS, UOB and OCBC have so strongly been entrenched in Singapore that it would be rather impossible for foreign banks to make a significant dent on the corporate and retail banking market.

To put it briefly, both Indonesia and Singapore would benefit greatly from a DBS-Danamon merger.

First of all, a DBS-Danamon merger will bring in a more significant competitor to Indonesia's four largest banks - state-owned Bank Mandiri, BNI, and BRI and Bank Central Asia - thereby, making the banking market even more competitive and consequently more efficient.

Most important is that the DBS-Danamon deal would have benefitted Indonesia's banking industry through the transfer of skills, expertise in risk management and other best practices of good governance, as well as wider access to new sources of long-term foreign exchange financing for infrastructure development.

Singapore loses much more than Indonesia in DBS decision | Asiaone News

 

[nufix]

Asean Open Skies will flop without Indonesia, says expert

An Asian aviation expert has warned the impact of the Asean Open Skies initiative will be limited unless Indonesia is included in the scheme.

Dr Alan Khee-Jin Tan, professor of Aviation Law at the National University of Singapore, who is also an Asean expert, said he is "taking a very critical view [of Asean Open Skies]".

He was speaking at CAPA’s Australian Pacific Aviation Summit in Sydney today.

Governments across the region are aiming to have the new Asean Open Skies scheme a reality by 2015.

Khee-Jin Tan said he was viewing the scheme skeptically as one of the largest economies and markets in the region – Indonesia – has not accepted the agreements.

"Indonesia is staying out as they are concerned that lots of traffic will be bled away through sixth freedom rights. Indonesian carriers are lobbying their government aggressively to stay out."

He added that he believed the Asean Open Skies project does not go far enough as it stops at fifth freedom rights.

He argued that true Open Skies is required in order for Asean carriers to truly serve the fast-growing markets in the region.

"You’ve got to have seventh freedom rights – and that is not even on the negotiating table," he said.

Routes News - Asean Open Skies will flop without Indonesia, says expert

 

[nufix]

Indonesia Joins China as Cyber-Attack Powerhouse
By Mark Milian

Indonesian students work during a regional hacking competition in Denpasar, Bali, Indonesia, in 2007.

Indonesia isn't known as an epicenter for hacking, but the Southeast Asian country was the source of 21 percent of the world's cyber-attack traffic in the first quarter of this year, according to a report by Akamai Technologies to be published later today.
The type of activity observed in Indonesia suggests an aggressive botnet attack, according to the study. A botnet takes control of hordes of personal computers by infecting them with malicious software that forces them to do a hacker's bidding.

The latest data represent a sudden shift for Indonesia, which accounted for less than 1 percent of online assaults in the fourth quarter of last year, according to Akamai. This year, the country has generated several headlines related to cyber-attacks.
In January, hackers protested the treatment of one of their own in Indonesia by defacing government websites. Then in May, China's official Xinhua News Agency reported that Indonesia plans to set up a "cyber-army" after the recent barrage of hacking attacks. And in June, Microsoft said it had disrupted a widespread cybercrime operation that originated in Indonesia, among other countries, according to Reuters.

Indonesia ranked No. 2 in global attack traffic behind China, which accounted for 34 percent. In third place with 8.3 percent was the U.S., which has steadily become a smaller source of digital assaults over the last few quarters amid the rise of Asia and Eastern Europe. Turkey and Russia rounded out the top five on Akamai's list.

Indonesia, Hong Kong and India were the only places in the top 10 where the volume of attacks increased compared with the previous quarter, according to the report. The study is based on traffic flowing through Akamai's network, which companies use to help speed the delivery of online content.

Indonesia Joins China as Cyber-Attack Powerhouse - Bloomberg

 

[Reashot Xigwin]

Indonesia reiterates no more exporting of maids after 2017

By ZORA CHAN

KUCHING: Indonesia has reiterated its stand that it will stop exporting maids after 2017.

Its Consul-General in Sarawak, Djoko Harjanto, said a new policy under the republic’s Domestic Worker Roadmap 2017 not only involved Malaysia but worldwide.

Djoko said the policy was announced by Manpower and Transmigration Ministry about two years ago.

“The ministry had made a statement about this. Not only no more export of domestic helpers to Malaysia – to everywhere in the world,” he said when met at Hari Raya open house at his residence here on Thursday.

Under the roadmap, the Indonesian government wants to ensure maids are treated like other workers when they work abroad, including earning the minimum wages, getting leave and working fixed hours.

It aims to raise the skills of the thousands of Indonesians going overseas to work.

Djoko said as far as Sarawak was concerned, there were not many domestic helpers coming to the state.

In fact, he said, generally the number of Indonesians working in the state had reduced in recent years due to the more employment opportunities at home.

“The decrease is not due to any government policy but there are more jobs in Indonesia nowadays, so our people naturally prefer to work in their own country.”

Djoko said there were now about 200,000 Indonesians working legally in Sarawak, mainly in the oil palm estates and construction sites.

Indonesia reiterates no more exporting of maids after 2017 - Nation | The Star Online


Dwindling number of Indonesian workers due to more jobs at home

KUCHING: The number of Indonesians working in Sarawak has reduced by about 20% in the past two years.

This was mainly because there were more employment opportunities in oil palm estates in Indonesia, particularly in West Kalimantan, said Indonesian Consul-General Djoko Harjanto.

“The decrease is not due to any government policy but there are more jobs in Indonesia nowadays, so our people naturally prefer to work in their own country.”

A potential employer could request for 200 Indonesian workers but sometimes, would only get 50, he said.

Besides, the salary gap between working in Sarawak and Kalimantan was small and therefore, Indonesians rather work in their homeland, he said at his Hari Raya open house here on Thursday.

Djoko said there were now about 200,000 Indonesians working legally in the state, mainly in the oil palm estates.

“The rest work in shops, plywood factories and hospitals. There are not many maids anymore. By 2017, Indonesia will stop supplying maids to the whole world, a new policy announced by our Human Resource Minister two years ago.”

Those who entered the state illegally to work might be between 100,000 and 200,000 people, he added.

Dwindling number of Indonesian workers due to more jobs at home - Community | The Star Online

1 small step for Indonesia.

 

[nufix]

Lion Air Eyes Local Planemaker for Eastern Indonesia Push
By Jakarta Globe
Category Business, Corporate News

Lion Air Aeroplanes


Budget carrier Lion Air announced plans on Monday to purchase 50 small passenger plans from domestic manufacturer Dirgantara Indonesia as part of a push to expand service to eastern Indonesia.

“We want to partner with PT DI,” Lion Air president Rusdi Kurana said on Monday in a meeting with State-Owned Enterprises Minister Dahlan Iskan.

Dirgantara Indonesia is currently developing a 19-passenger prototype of its N-219 plane. The $4 million aircraft is expected to enter production in two years’ time.

N 219, developed by PT Dirgantara Indonesia

Lion Air hopes to use the planes on proposed routes to smaller under-served airports in eastern Indonesia. The region is currently served by the state-owned Merpati Airlines and smaller carriers like Susi Air.

Dahlan said a deal between Lion Air and Dirgantara Indonesia is still a long way off.

“It’s a long negotiation,” Dahlan told the Indonesian news portal Vivanews.

He hoped other airlines would follow suit and purchase domestically produced aircraft.

Lion Air Eyes Local Planemaker for Eastern Indonesia Push - The Jakarta Globe

 

[nufix]

15 AUG 2012 | ENERGY & RENEWABLE ENERGY
PLN Shuts Down 18 Generators during Idul Fitri
BY IGNASIUS LAYA & WILDA ASMARINI

JAKARTA (IFT) – State-owned power company PT PLN (Persero) will shut down 18 steam power plant generators in the Java-Bali power system with total capacity of 7,200 megawatts (MW) several days prior to and after Idul Fitri. Nur Pamudji, Preisdent Director of PLN, says that the shutting down of several generators in the Java-Bali system is aimed at balancing the availability of supply and power consumption during Idul Fitri.

Power consumption during Idul Fitri period declines from daily average consumption. Some of the generators that will be shut down are the Suralaya steam power plant Units 1,2,5 and the Tanjung Jati steam power plant Units 2 and 3. “The generators will be shut down to avoid excess power supply since power consumption will drop. But we will operate them again in phases,” he said.

 

[nufix]

Indonesia's Doubles Top BWF Guangzhou 2013.

THE RESULTS

Women Double
Wang Xiaoli/Yu Yang [CHN] Vs. Eom
Hye Won/Jang Ye Na [KOR] 21-14 18-21 21-8

Women Single
Ratchanok Intanon (THAILAND) vs (CHINA) Xuerui Li 22-20 18-21 21-14

Mix Double
Tontowi Ahmad/Liliyana Natsir [INDONESIA] Vs. Chen Xu /Jin Ma [CHINA]
21-13 16-21 22-20

Men Double
Mohammad Ahsan/Hendra Setiawan [INDONESIA] - Mathias Boe/Carsten Mogensen [DENMARK] 21-13, 23-21

Men Single
Chong Wei Lee [MALAYSIA] - Lin Dan [CHINA] 21-16 13-21 17-20

 

[Nike]

Indonesia's Doubles Top BWF Guangzhou 2013.

THE RESULTS

Women Double
Wang Xiaoli/Yu Yang [CHN] Vs. Eom
Hye Won/Jang Ye Na [KOR] 21-14 18-21 21-8

Women Single
Ratchanok Intanon (THAILAND) vs (CHINA) Xuerui Li 22-20 18-21 21-14

Mix Double
Tontowi Ahmad/Liliyana Natsir [INDONESIA] Vs. Chen Xu /Jin Ma [CHINA]
21-13 16-21 22-20

Men Double
Mohammad Ahsan/Hendra Setiawan [INDONESIA] - Mathias Boe/Carsten Mogensen [DENMARK] 21-13, 23-21

Men Single
Chong Wei Lee [MALAYSIA] - Lin Dan [CHINA] 21-16 13-21 17-20

Woow we beat the Chinese in their homes, i hope we can continue this string of successes much better than now

 

[Nike]

Mining Giants Sign Processing Agreements


By Tito Summa Siahaan on 8:47 am August 14, 2013.
Category Business, Commodities
Tags: Freeport Indonesia, mining

Freeport Indonesia, which operates Papua’s Grasberg Mine, agreed to send supplies to local smelters once facilities are built. (Reuters Photo)


With the 2014 ban on mineral exports looming, two mining giants announced on Tuesday that they signed landmark agreements to supply their concentrates to local processing firms that plan to build smelters.

Rozik B. Soetjipto, president director of Freeport Indonesia, on Tuesday signed a memorandum of understanding with Indovasi Mineral and Indosmelt to supply them with concentrates should the companies’ plans to build processing facilities be successful.

Martiono Hadianto, the president director of Newmont Nusa Tenggara, disclosed that his company had also signed a similar agreement with the two firms.

Under the plan, Indovasi will build a processing facility with a production capacity of 200,000 tons of copper cathode, while Indosmelt’s facility will have output of around 120,000 tons of copper cathode and up to 30 tons of gold a year. The projects will cost around $1.5 billion each.

However, the facilities are still on the drawing board and will likely be completed in 2017, meaning that the MoU signed by both Freeport and Newmont will still miss the 2014 deadline set by the government that will ban the exporting of raw minerals for processing.

For that reason, both Rozik and Martiono requested a deadline extension from the government to allow for time to build the facilities so minerals can be processed domestically.

Currently, 30 percent to 40 percent of output from Freeport’s and Newmont’s mining sites is processed in a smelting facility in Gresik, East Java.

“Our commitment [to support the government’s program] is clear, but it must be done in phases and realistically. We plead for the government to understand the circumstances and be more flexible,” Rozik told a news conference on Tuesday.

Martiono echoed Rozik’s opinion, requesting the government be “considerate” in implementing its program.

“They must have known that it [the deadline] is impossible [to meet]. I heard that the government is in talks to seek the best solutions possible,” he added.

But the government appears to have little flexibility on the matter, as the 2009 Mining Law states that the raw mineral export ban will be imposed next year.

Thamrin Sihite, the director general of coal and mineral resources at the Energy and Mineral Resources Ministry, said the agreements signed by Freeport and Newmont will have little impact on the circumstances of the law.

“We are always consistent with the law. The only way to alter it is either by revising the law, which is difficult, or issuing a government regulation in lieu of law [Perpu],” he said.

Thamrin pointed out that postponing the export deadline would be unfair to companies that have already invested heavily in smelting facilities to comply with the government’s program.

Dede Indra Suhendra, the ministry’s director of minerals, said that miners like Freeport and Newmont will have had at least five years to meet the deadline, which was finalized in 2009.

Furthermore, during the drafting of the law, the government was informed by miners that building a smelter would only take three years, Dede said.

Thamrin and Dede claimed the government had nothing to lose if the export ban is imposed as scheduled.

“There will be no revenue loss should Freeport and Newmont stop shipping their concentrates abroad, because the resources will still be there, contained within the soil,” Thamrin said.

Freeport has operations in Papua while Newmont operates the Batu Hijau mine on Sumbawa island in West Nusa Tenggara.

Miners have long warned that the time frame for the export ban is unrealistic.

Mining Giants Sign Processing Agreements - The Jakarta Globe