Indonesia Economy Forum

[papacita]

Indonesian stocks, 2nd best performer of 2016 in Asia Pasific, 5th best in the world

https://finance.detik.com/bursa-dan-valas/d-3384126/ihsg-urutan-5-terbaik-dunia
Jakarta - Di tengah kondisi perekonomian global yang bergejolak, pertumbuhan ekonomi Indonesia dinilai masih cukup terjaga. Kondisi ekonomi domestik yang cukup kuat dinilai dapat mendorong rupiah dan penguatan nilai Indeks Harga Saham Gabungan (IHSG).

Tercatat, hingga 29 Desember 2016, IHSG ditutup pada posisi 5.302,57, meningkat sebesar 15,45% dibandingkan posisi penutupan tahun lalu.

"Pertumbuhan IHSG sebesar 15,45% merupakan pertumbuhan indeks terbaik kedua di kawasan Asia Pasifik dan ranking 5 terbaik dunia," ungkap Ketua Dewan Komisioner OJK Muliaman D Hadad di Kantornya, Jakarta, Jumat (30/12/2016).

Dari sisi penambahan jumlah emiten, terang Mulaman, di tahun 2016 ini, Bursa Efek Indonesia (BEI) berhasil menambah 16 emiten baru.

"Itu suatu angka yang jauh lebih baik dari Bursa Efek Singapura dan Filipina yang masing-masing justru kehilangan atau minus 10 dan 1 emiten di tahun yang sama," kata dia.

Sementara itu, lanjut dia, kondisi stabilitas sektor jasa keuangan Indonesia masih berada dalam kondisi normal. OJK juga mencatat, tingkat kesehatan lembaga jasa keuangan juga masih dalam kondisi terjaga dengan didukung tingkat permodalan yang tinggi dan likuiditas yang memadai.

Salah satu faktor yang dinilai membuat perekonomian domestik berkembang, kata Muliaman, adalah karena keberhasilan dari program tax amnesty yang tengah dilakukan.

"Sentimen positif domestik terkait perkembangan perekonomian yang lebih baik dari ekspektasi pasar dan program keberhasilan tax amnesty mampu menjaga penguatan IHSG dan nilai tukar," tutupnya.

 

[pr1v4t33r]

Kenyan couple's wedding showcases Indonesian culture

Kenyan Joshua Mugo and his new wife chose to combine Kenyan and Indonesian cultures as the theme for their recent wedding. Held on Sunday in a school yard in Nairobi, the unique wedding reception opened with gending (gamelan melodies) and ended with Kenyan dance.

Following Javanese tradition, the couple dressed in black and gold jarik (batik skirts) and slowly entered the wedding area to a melody of “Gending Lancaran Kebo Giro”.

For entertainment, the wedding hosted an angklung performance from the wives of employees at the Tourism Ministry, dubbed Dharma Wanita, from the Indonesian Embassy in Nairobi. The group performed together with a Nairobi-based choir, playing Kenyan songs “Jambo Bwana” and “Malaika”.

Interestingly, the couple have never visited the archipelago. Mugo first learned about Indonesian culture while studying music at a leading private university in Kenya, which led him to meet a professor from Malang, East Java. Since then, the groom has had a strong interest in Indonesian culture.

Indonesian Ambassador to Kenya Soehardjono Sastromihardjo said the embassy would keep promoting Indonesian culture. “This wedding that combines Indonesian and Kenyan cultures is one of our efforts to promote Indonesia to Kenyan citizens,” he said.

http://www.thejakartapost.com/life/...les-wedding-showcases-indonesian-culture.html

 

[Satria Manggala]

Bloomberg: Jokowi pemimpin terbaik Asia-Australia 2016

Jakarta (ANTARA News) - Presiden Joko Widodo (Jokowi) mencatatkan rapor sebagai pemimpin terbaik atau paling unggul di antara para pemimpin Asia-Australia pada tahun 2016.

Berdasarkan data dari Bloomberg yang diterima Antara di Jakarta, Sabtu, Presiden Joko Widodo merupakan satu-satunya pemimpin negara yang memiliki performa positif dalam seluruh aspek yang dinilai, yaitu menaikkan kekuatan nilai tukar (2,41 persen), menjaga pertumbuhan ekonomi tetap positif (5,02 persen skala tahun ke tahun) dan memiliki tingkat penerimaan publik yang tinggi (69 persen).

Data tersebut juga menunjukkan bahwa bila dibandingkan dengan pemimpin negara lainnya yang memiliki ukuran ekonomi setara atau lebih besar, prestasi Presiden Jokowi masih menonjol daripada lainnya. Malaysia dan Filipina sama-sama tercatat memiliki nilai tukar negatif sebesar 4,26 persen dan 5,29 persen.

Sementara itu, Presiden Korea Selatan Park Geun-Hye memiliki catatan merah untuk semua aspek. Fakta tersebut didukung dari data bahwa, nilai tukar Won menurun sebesar 2 persen dan pertumbuhan ekonomi yang hanya di angka 2,87 persen, Geun Hye juga memiliki reputasi tingkat penerimaan publik atas dirinya hanya sebesar 4 persen yang menyebabkan dirinya dipaksa untuk mengundurkan diri.

Presiden Jokowi telah menekankan otoritasnya kepada lembaga-lembaga politik selama 2016, dengan menggabungkan kepemimpinan dan kepiawaian politiknya, dengan data bahwa ia mengendalikan dua per tiga kursi di parleme. Program keberhasilan "amnesti pajak" juga mampu membiayai program pembangunan infrastrukturnya.

Dari keseluruhan pemimpin yang dinilai oleh Bloomberg yaitu delapan pemimpin negara, Jokowi satu-satunya pemimpin dunia yang memiliki semua indikator positif untuk tiga kategori yaitu fluktuasi kurs, pertumbuhan ekonomi dan rating penerimaan publik.

Sementara itu, penerimaan publik paling tinggi dimiliki oleh Presiden Filipina Rodrigo Duterte dengan rating 83 persen, ia juga mendapatkan nilai 7,1 persen dalam upaya menjaga pertumbuhan ekonomi, namun dalam nilai tukar mata uang Peso menurun drastis 5, 29 persen atau mendapat rapor merah.

Pertukaran nilai mata uang paling rendah dimiliki oleh Presiden Tiongkok Xi Jinping yang menurut data telah turun sebesar minus 6,63 persen, paling rendah diantara yang lain.

Kedelapan pemimpin tersebut yang didata oleh Bloomberg adalah Presiden Tiongkok Xi Jinping, Perdana Menteri Jepang Shinzo Abe, Perdana Menteri India Narendra Modi, Presiden Korea Selatan Park Geun-Hye, Presiden Indonesia Joko Widodo, Presiden Filipina Rodrigo Duterte, Perdana Menteri Malaysia Najib Razak, Perdana Menteri Australia Malcolm Turnbull (disebutkan tanpa berurutan peringkat).

 

[Bennedict]

Indonesian Agricultural Programs Deemed Successful in 2016

TEMPO.CO, Jakarta - One of the aims of the Indonesian governments programs in 2016 was to advance the agricultural sector, in order to regain the country`s self-sufficiency in rice, as in the past.

Due to its efforts to introduce mechanized agricultural technology, repair damaged agricultural infrastructure, and open new rice fields, the government has been able to change the countrys rice planting season from one to two, and even three times, per year.

With its success in carrying out these programs in 2016, the government increased unhusked rice production to 79 million tons, exceeding its target of 76 million tons of unhusked rice, and stop importing rice in 2016.

"Indonesia will not need to import rice, and it could even export the commodity to other countries, " Agriculture Minister Andi Amran Sulaiman said in the village of Bhakti Rasa, Sragi subdistrict, South Lampung, on Thursday (Dec 29, 2016).

National production of unhulled rice rose to 79 million tons in 2016, from 74 million tons of unhulled rice in 2015 and 70 million tons in 2014.

In order to maintain and advance the agricultural sector, the Ministry of Agriculture will continue to promote the use of agricultural technology.

Indonesian farmers should now become skillful in the use of technology and the use of hybrid seeds. Thus, they are expected to see harvest seasons two to three times per year.

Additionally, the use of technology will continue to be promoted by the Agriculture Ministry in order to improve the welfare of the farmers.

"Through the use of technology, including agricultural mechanization, rice production is expected to increase by 200 percent," Minister Amran Sulaiman said, conducting a rice grand harvest in Margorejo Village, Metro Selatan Subdistrict, Metro City, Lampung on Friday (Dec 30).

According to the minister, his ministry will continue to make efforts to increase agricultural production through mechanization, such as providing machine tools for farmers.

Through measures, such as the provision of agricultural machinery (alsintan) to farmers, the ministry encourages mechanization of agriculture, a policy that will continue to further improve agricultural productivity.

The minister said the use of agricultural technology resulted into reductions in production costs by 50 percent. The production cost of one hectare, which usually reached Rp12 million, has now been reduced to Rp6 million. In addition, in one year a farmer can plant two to three times.

In order to regain the countrys former high levels of food production, the government has also overhauled various regulations in the food sector and repaired damaged rice growing infrastructure, which reached three million hectares. President Joko Widodo (Jokowi) has asked the minister to finish the repairs within three years, but the Minister of Agriculture said his staff has been trying to complete this in one year.

The government is also improving the distribution of fertilizers and has taken action against those who distribute fake or mixed fertilizers, which harm farmers.

Self-sufficiency in food can be achieved through efforts to modernize agriculture, while new regulations and infrastructure are improved. The officials have worked hard to boost production and control exports and imports. Organic agriculture is very attractive and prices for this produce could increase ten times and improve the welfare of farmers.

The government has distributed some 160,000 agricultural machine tools in the regions. Also, in 2016 Indonesia tried to open up 200,000 hectares of new rice fields.

By increasing the acreage of the countrys rice fields by 200,000 hectares, rice farms in Indonesia now cover some 9.0 million hectares.

Chairman of the Peoples Deliberative Assembly (MPR) Zulkifli Hasan praised the efforts of the agriculture minister to increase agricultural production through various measures, including mechanization.

"We both know, at this time, to increase agricultural land was very difficult. But the population will surely continue to grow so that food production should be increased. Therefore, I appreciate the performance of the Minister of Agriculture and his efforts to increase production, especially through technology mechanization," he said.

The assembly speaker also expressed his gratitude to Minister of Agriculture Andi Amran Sulaiman, whose efforts during the past two years, he said, had lifted agricultural production and ensured that the country did not have to import rice.

"It must be recognized that I am grateful for the performance of Amran, who has proven his ability to increase agricultural production. And, this is the reality this year, as the government did not import rice after 32 years of importing the commodity. It should be appreciated because, with our current condition, it is not easy to do," he said.

According to Zulkifli, providing agricultural machinery to farmers is a very effective, helpful policy, and in accordance with current requirements.

"It is inevitable that mechanization is really required. Farmers used to set off into the fields while it was still dark, they are exposed to the sun and their skin became dark, and they returned home very late, again when it was dark. By using new tools, such as hand tractors, farmers can finish cultivating one hectare of land in three hours, where it used to take 11 days to cultivate," said Zulkifli.



ANTARA

 

[papacita]

Indonesia to build infrastructure projects worth Rp4,000 trillion in 2019

Jakarta (ANTARA News) - The Indonesian government said the country is expected to build infrastructure projects with a total investment of Rp4,000 trillion until 2019.

Minister of National Development Planning Agency (Bappenas) Bambang Permadi Soemantri Brodjonegoro said the private sector would account for to third or Rp2,667 trillion of the investment.

Bambang said the government would put up Rp1,333 trillion or one third of the total investment.

The private sector including state companies are expected to provide two third of the total investment, he said at a discussion on Evaluation of Year-end 2016 and Hope 2017 here on Saturday (31/12/2016).

He said infrastructure projects are high attractive for the private sector especially ones related directly to the public interest such as toll roads, airports and seaports.

When private investors build a power plant and PLN would buy the power at a take or pay price the prospective investors would be interested, he cited.

He said as long as the investment and the selling price to the national power utility are reasonable, there would be purchasing power agreement.

Toll road projects in Java are almost certain to be profitable, he said.
http://www.antaranews.com/en/news/1...ucture-projects-worth-rp4000-trillion-in-2019

(Rp4,000 trillion = +-US$300 billion)

 

[Bungaterakhir]

Border INDONESIA-TIMOR LESTE (INDONESIA SIDE)

 

[Bungaterakhir]

Jakarta`s giant sea wall to prevent city from sinking: Bappenas

Jakarta (ANTARA News) - The giant sea wall to be built along the coast of Jakarta is designed to prevent the city from sinking, head of the National Development Planning Board (Bappenas) Bambang Permadi Soemantri Brodjonegoro has said.
"The giant sea wall is planned on necessity not on some sort of image projection. Therefore no one should make a controversy of it," Bambang, who is minister for national development planning, said in a year-end discussion here on Saturday.
The national Capital Integrated Coastal Development (NCICD) has been in the center of controversy following corruption case involving the city councilor and a developer. Bambang said he has submitted to President Joko Widodo a report about calculation and comprehensive analysis of the project.He said the project become urgent as the city is sinking faster than previously expected.

"We are confronted with a situation of the city sinking faster than originally estimated. Not only Jakarta but all coastal areas of Java tend to sink," he said. Semarang of Central Java has even flooded with sea water, he added.
"Jakarta sinks much faster than previously estimated because of much use of ground water, therefore, we have to address this problem immediately," he said.
The capital city, one of the worlds most densely populated cities, sits on a swampy plain and is sinking at a faster rate than any other city in the world.

The first phase of building the giant sea wall that will cost around Rp10 trillion is to keep Jakarta from caving in until 2025, he said.In addition the city administration has to control the use of ground water by improving the drinking water supply system, he said.

"For that purpose in the next phase we need to build sea wall not on-shore but off-shore that the cost would be much high at Rp70 trillion up to Rp80 trillion. That might save Jakarta until 2040 or longer," he said.The plan, therefore, has to be carefully drawn and the technology is not easily available, he said.

He said the sea wall on shore has to be built soon in places where the ground sinks faster, adding by 2020 or 2021, the government has to start planning construction of the off shore wall.(*)

Source : antara

 

[pr1v4t33r]

Indonesia sacks JPMorgan following downgrade
Investment bank says country will lose out under a Trump administration

JAKARTA -- The Indonesian government has terminated its contracts with investment bank JPMorgan Chase following its downgrade of the country in a November report. Finance Minister Sri Mulyani Indrawati calls the report "misleading."

JPMorgan named Indonesia one of the "losers from Trumponomics" in its Nov. 13 report, citing the spike in the volatility of the bond market following Donald Trump's win in the U.S. presidential election. The U.S. investment bank downgraded Indonesia from "overweight" to "underweight."

The Indonesian government in early December decided to terminate its contracts with JPMorgan in response to the report. On Tuesday, Indrawati explained the reason behind the government's decision.

"A nation's economy is affected by fundamental and psychological factors. The government is open to critics, but the JPMorgan cuts its recommendation ... without a credible assessment," the minister said.

She adds the "misleading" report does not reflect the true condition of Indonesia, and may scare away investors, despite the many reforms the government has introduced over the past couple of years.

"And [the reforms] have led to better economic fundamentals. We are guarding this republic professionally," said the former managing director of the World Bank, who was only re-appointed as the finance minister in July 2016.

JPMorgan has been removed from the Finance Ministry's latest list of primary bond dealers. Effective from Jan. 1, it also no longer serves as one of the so-called "perception banks," namely local and foreign banks appointed by the Indonesian government to receive payments of taxes and some other sources of income for the state.

A copy of a letter to JPMorgan, signed by the Indonesian director-general for treasury on Dec. 9, said the downgrade "has the potential to disrupt the stability of the national financial system," hence the Finance Ministry's decision to "cut all partnerships" with the investment bank.

Separately on Tuesday, Chief Economic Minister Darmin Nasution questioned paramaters used by JPMorgan in the research published in November. The downgrade, he said, is in contrast with Fitch Ratings, which last month upgraded its credit rating outlook of Indonesia from "stable" to "positive."

"Indonesia's economy is in a stable and good condition," the minister told reporters on Tuesday. "JPMorgan must prove the credibility of its research."

http://asia.nikkei.com/Politics-Economy/Policy-Politics/Indonesia-sacks-JPMorgan-following-downgrade

 

[pr1v4t33r]

India, Indonesia and Thailand to outperform Asia in 2017

When it comes to Asia's growth outlook, the south still reigns supreme. India, Indonesia and Thailand are seen as the region's best performers of 2017 thanks to healthy fundamentals, economists told CNBC.

"Export-dependent economies such as Korea, Taiwan, Singapore, and even China are unlikely to see a rebound this year. Our advice is to look at locally-driven economies like India and Indonesia, where debt levels are relatively low, there's positive credit impulse and strong domestic consumption," said Frederic Neumann, managing director and co-head of Asian economics research at HSBC.

While the bank retains a cautious view on Asia's overall outlook, warning that regional growth will likely to slow at the margin in 2017 rather than accelerate, these three countries are still seen as a bright spot.

Indian and Indonesian currencies, which suffered wild swings against the greenback in 2013 when the U.S. central bank first indicated it would hike rates, are now predicted to be relatively stable even as the Fed tightens its taps. Neither the rupiah or the rupee will see a re-run of 2013's taper tantrums this year, predicted Neumann.

Game-changing tax reforms in both countries also made both nations a favorite among investors. Indonesian President Joko Widodo launched a tax amnesty program in July last year that collected around $7.7 billion in government revenue as of Dec. 20, a major coup for the leader's plans to ramp up infrastructure spending.

readmore: http://www.cnbc.com/2017/01/03/india-indonesia-and-thailand-to-outperform-asia-in-2017.html

 

[samsara]

Indonesia Terminates All Business Relationships With JPMorgan After Downgrade

by Tyler Durden, ZeroHedge - 2017-01-03

We officially have a new definition ot "thin-skinned".

The office of the JPMorgan Chase in Jakarta, the capital of Indonesia, situated in the most prime business & financial district

In what may be one of the most dramatic retaliations to a downgrade report, Indonesia’s government said it has terminated all business partnerships with JPMorgan Chase after the U.S. bank downgraded its outlook on stocks in Southeast Asia’s largest economy. The finance ministry announced it would stop using JPMorgan as a primary dealer and as an underwriter of its sovereign bonds, Robert Pakpahan, the ministry’s director-general for budget financing and risk management told reporters in Jakarta on Tuesday (2017-01-03). The reason: Pakpahan said a November research report issued by the bank was not "accurate or credible."

JPMorgan downgraded Indonesia’s equity market by two notches to underweight from overweight in a Nov. 13 report as a “tactical response” to the Trump election win. The bank also downgraded Brazil, while noting that both countries may provide a "better buying opportunity” later, Bloomberg reported.

Perhaps Indonesia's anger will promptly blow off once the warning shot has been fired: at least as of this morning, JPMorgan’s business in Indonesia continues to operate as normal, the bank said in an e-mailed statement on Tuesday. “The impact on our clients is minimal and we continue to work with the Ministry of Finance to resolve the matter,” it said.

The government doesn't see it quite as innocently, however: any tax payments by Indonesian companies which were previously routed through JPMorgan will now be passed to the government via other banks, according to Bank Indonesia Governor Agus Martowardojo.

The biggest U.S. bank was part of a underwriting syndicate when Indonesia sold 3 billion euros ($3.1 billion) of bonds in June. However, the lender wasn’t listed as a member of syndicates for two more recent offerings denominated in yen and U.S. dollars, according to Bloomberg data.

The government’s action illustrates some of the difficulties in producing balanced research reports, said Alan Richardson, an investment manager at Samsung Asset Management in Hong Kong. "I don’t think it will affect investor interest in Indonesia but it does reflect the difficulty of sell-side analysts to provide independent and objective opinions to their clients without upsetting the government officials and regulators," Richardson said.​

Meanwhile, JPM's assessment appears to have been right: foreign investors sold a net $2.8 billion of Indonesian stocks and bonds last quarter as investors dumped emerging-market assets following Trump’s victory. That drove local markets and the rupiah lower, forcing policy makers to intervene to stabilize the currency.

For now Indonesia remains furious, and blames JPM for the recent market volatility: banks should take responsibility for economic reports that "could influence fundamentals and psychology," Finance Minister Sri Mulyani Indrawati said Tuesday, when asked to comment on the termination of the JPMorgan relationship.

JPMorgan provides investment and commercial banking services to the public and private sectors in Indonesia, according to the bank’s website. It obtained an Indonesian banking license in 1968 in the name of Chase Manhattan, and opened a branch in Jakarta, followed by a representative office in 1978.​

Curiously, in the aftermath of the last financial crisis, it was the rating agencies who got the bulk of the blame; that sell-side equity research is now facing the proverbial "firing squad" when issuing negative research is rather troubling - this phenomenon is certainly not confined to the sovereign level - and indicates how banks, once caught with a Buy or Neutral rating on any given name, are loath to cut or downgrade, aware of the potential foregone future revenue opportunities as a result of telling the truth.

http://www.zerohedge.com/news/2017-...siness-relationships-jpmorgan-after-downgrade


~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~


Indonesian government must be careful. The JPMorgan Chase is one of the largest banks in the USA, owned and controlled by the world's two most powerful multi-generational wealthiest families: Rothschild and Rockefeller.
So powerful the bank, the JPMorgan Chase is even one of the shareholders of the Federal Reserve of the United States - see "The Creature from Jekyll Island: A Second Look at the Federal Reserve" (the 5th Edition) by G. Edward Griffin and many other resources in the net.
Here's a terse article by the famous author, Ellen Brown:
Who Owns The Federal Reserve? | Global Research - Centre for Research on Globalization

The JPMorgan Chase was found guilty of a felony in the USA in 2015, and they have settled countless other criminal investigations before trials, and have paid billions in fines though that amount was just a drop in the ocean compared to what they made with all their illegal activities (these fines are for public consumption only). The fines were just taken as business expenses and the courts do nothing to the repeat offender. Just dig JPMorgan Chase's fines and your eyes will pop out that this entity is still allowed to operate as a "bank". Wondering how many people still remember the Blythe Masters and the CDS (Credit Default Swaps) case, not to mention the London Whale fiasco? The criminality of JPMorgan Chase was, and still is, pervasive and widespread. Conspiracy, money laundering, market rigging, etc...the list is endless.

Btw in today's world the rating agencies are indeed tools of economic warfare!

 

[afiq0110]

Indonesia Terminates All Business Relationships With JPMorgan After Downgrade

by Tyler Durden, ZeroHedge - 2017-01-03

We officially have a new definition ot "thin-skinned".

In what may be one of the most dramatic retaliations to a downgrade report, Indonesia’s government said it has terminated all business partnerships with JPMorgan Chase after the U.S. bank downgraded its outlook on stocks in Southeast Asia’s largest economy. The finance ministry announced it would stop using JPMorgan as a primary dealer and as an underwriter of its sovereign bonds, Robert Pakpahan, the ministry’s director-general for budget financing and risk management told reporters in Jakarta on Tuesday (2017-01-03). The reason: Pakpahan said a November research report issued by the bank was not "accurate or credible."

JPMorgan downgraded Indonesia’s equity market by two notches to underweight from overweight in a Nov. 13 report as a “tactical response” to the Trump election win. The bank also downgraded Brazil, while noting that both countries may provide a "better buying opportunity” later, Bloomberg reported.

Perhaps Indonesia's anger will promptly blow off once the warning shot has been fired: at least as of this morning, JPMorgan’s business in Indonesia continues to operate as normal, the bank said in an e-mailed statement on Tuesday. “The impact on our clients is minimal and we continue to work with the Ministry of Finance to resolve the matter,” it said.

The government doesn't see it quite as innocently, however: any tax payments by Indonesian companies which were previously routed through JPMorgan will now be passed to the government via other banks, according to Bank Indonesia Governor Agus Martowardojo.

The biggest U.S. bank was part of a underwriting syndicate when Indonesia sold 3 billion euros ($3.1 billion) of bonds in June. However, the lender wasn’t listed as a member of syndicates for two more recent offerings denominated in yen and U.S. dollars, according to Bloomberg data.

The government’s action illustrates some of the difficulties in producing balanced research reports, said Alan Richardson, an investment manager at Samsung Asset Management in Hong Kong. "I don’t think it will affect investor interest in Indonesia but it does reflect the difficulty of sell-side analysts to provide independent and objective opinions to their clients without upsetting the government officials and regulators," Richardson said.​

Meanwhile, JPM's assessment appears to have been right: foreign investors sold a net $2.8 billion of Indonesian stocks and bonds last quarter as investors dumped emerging-market assets following Trump’s victory. That drove local markets and the rupiah lower, forcing policy makers to intervene to stabilize the currency.

For now Indonesia remains furious, and blames JPM for the recent market volatility: banks should take responsibility for economic reports that "could influence fundamentals and psychology," Finance Minister Sri Mulyani Indrawati said Tuesday, when asked to comment on the termination of the JPMorgan relationship.

JPMorgan provides investment and commercial banking services to the public and private sectors in Indonesia, according to the bank’s website. It obtained an Indonesian banking license in 1968 in the name of Chase Manhattan, and opened a branch in Jakarta, followed by a representative office in 1978.​

Curiously, in the aftermath of the last financial crisis, it was the rating agencies who got the bulk of the blame; that sell-side equity research is now facing the proverbial "firing squad" when issuing negative research is rather troubling - this phenomenon is certainly not confined to the sovereign level - and indicates how banks, once caught with a Buy or Neutral rating on any given name, are loath to cut or downgrade, aware of the potential foregone future revenue opportunities as a result of telling the truth.

http://www.zerohedge.com/news/2017-...siness-relationships-jpmorgan-after-downgrade


~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~


Indonesian government must be careful. The JP Morgan Chase is one of the largest banks in the USA, owned and controlled by the world's two most powerful multi-generational wealthiest families: Rothschild and Rockefeller.
So powerful the bank, the JP Morgan Chase is even one of the shareholders of the Federal Reserve of the United States - see "The Creature from Jekyll Island: A Second Look at the Federal Reserve" (the 5th Edition) by G. Edward Griffin and many other resources in the net.
Here's a terse article by the famous author, Ellen Brown:
Who Owns The Federal Reserve? | Global Research - Centre for Research on Globalization

The JP Morgan Chase was found guilty of a felony in the USA in 2015, and they have settled countless other criminal investigations before trials, and have paid billions in fines though that amount was just a drop in the ocean compared to what they made with all their illegal activities (these fines are for public consumption only). The fines were just taken as business expenses and the courts do nothing to the repeat offender. Just dig JP Morgan Chase's fines and your eyes will pop out that this entity is still allowed to operate as a "bank". Wondering how many people still remember the Blythe Masters and the CDS (Credit Default Swaps) case, not to mention the London Whale fiasco? The criminality of JP Morgan Chase was, and still is, pervasive and widespread. Conspiracy, money laundering, market rigging, etc...the list is endless.

Btw in today's world the rating agencies are indeed tools of economic warfare!

Thank you for the warning... I am sure the financial officers is well aware... Such action is necessary... There will be consequences... Upon our selves and jp... Its life... What cant kill you, will make you stronger

 

[nufix]

Btw in today's world the rating agencies are indeed tools of economic warfare!

Agree, our economic performance last year was mostly positive, we had strong economic fundamentals and our credit default swap was rated overweight which should lead the invester to buy the bonds. But JPMorgan downgraded our rating all the way down to underweight and when the finance ministry asked the JPMorgan to show the how and why, they didnt give any satisfying answers. It is clear that JPMorgan is once again trying to shake some more money from both the country and the investor by playing with rating.

 

[Bennedict]

Sri Mulyani: National Economy Is Run by Professionals

TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati has ensured that the national economy is managed professionally, accountably, and transparently in a bid to address challenges posed by the current global economic situation.

"It doesn't mean that everything is perfect. But we will continue to improve [the national economy] in professional, accountable and transparent manners and will build relationships based on mutual respect," Sri Mulyani said in relation to a termination of cooperation with JP Morgan Chase Bank in Jakarta on Tuesday, January 3, 2017.

Sri Mulyani added that all partnerships with financial institutions would be built based on good and mutual relationship.

"We are open to criticism and assessment because they are important for improvement. However, a reputable financial institution has a responsibility to create positive morale instead of misleading [assessment]," Sri Mulyani clarified.

Sri hoped that all partners would work with the government to manage and maintain the national economic fundamentals through positive and sustainable cooperation.

Sri Mulyani confirmed that the government has considered inputs from public and institutions and conduct internal improvements, such as tax reform.

"If there's an issue with the State Budget, we will correct it. We won't hesitate to do this, because we believe that professional, credible and accountable relationship is important," Sri said.

Earlier, the Finance Ministry decided to terminate cooperation contract with US-based JP Morgan Chase Bank following its research that could disrupt the national economic stability. Finance Ministry's director general of financing and risk management Robert Pakpahan said that the termination was conducted in relation to the research that doubted the quality of assets owned by Indonesian companies.

"The research is questionable since it was not based on accurate and credible assessment. Therefore, we terminated the cooperation because it wasn't professional," Robert explained.

ANTARA

 

[UMNOPutra]

Agree, our economic performance last year was mostly positive, we had strong economic fundamentals and our credit default swap was rated overweight which should lead the invester to buy the bonds. But JPMorgan downgraded our rating all the way down to underweight and when the finance ministry asked the JPMorgan to show the how and why, they didnt give any satisfying answers. It is clear that JPMorgan is once again trying to shake some more money from both the country and the investor by playing with rating.

If your statement is accurate ... I think Standard & Poors have to upgrade your rating from "JUNK" to "Investment Grade" .. as S&P did to PH in 2015.

Why didn't your government take action or "sanction" S&P (as they did to JP Morgan) as S&P declined to to improve your rating, even after Jokowi met their chairman in Jakarta in May 2016.

 

[UMNOPutra]

Bloomberg: Jokowi pemimpin terbaik Asia-Australia 2016

Jakarta (ANTARA News) - Presiden Joko Widodo (Jokowi) mencatatkan rapor sebagai pemimpin terbaik atau paling unggul di antara para pemimpin Asia-Australia pada tahun 2016.

Berdasarkan data dari Bloomberg yang diterima Antara di Jakarta, Sabtu, Presiden Joko Widodo merupakan satu-satunya pemimpin negara yang memiliki performa positif dalam seluruh aspek yang dinilai, yaitu menaikkan kekuatan nilai tukar (2,41 persen), menjaga pertumbuhan ekonomi tetap positif (5,02 persen skala tahun ke tahun) dan memiliki tingkat penerimaan publik yang tinggi (69 persen).

Data tersebut juga menunjukkan bahwa bila dibandingkan dengan pemimpin negara lainnya yang memiliki ukuran ekonomi setara atau lebih besar, prestasi Presiden Jokowi masih menonjol daripada lainnya. Malaysia dan Filipina sama-sama tercatat memiliki nilai tukar negatif sebesar 4,26 persen dan 5,29 persen.

Sementara itu, Presiden Korea Selatan Park Geun-Hye memiliki catatan merah untuk semua aspek. Fakta tersebut didukung dari data bahwa, nilai tukar Won menurun sebesar 2 persen dan pertumbuhan ekonomi yang hanya di angka 2,87 persen, Geun Hye juga memiliki reputasi tingkat penerimaan publik atas dirinya hanya sebesar 4 persen yang menyebabkan dirinya dipaksa untuk mengundurkan diri.

Presiden Jokowi telah menekankan otoritasnya kepada lembaga-lembaga politik selama 2016, dengan menggabungkan kepemimpinan dan kepiawaian politiknya, dengan data bahwa ia mengendalikan dua per tiga kursi di parleme. Program keberhasilan "amnesti pajak" juga mampu membiayai program pembangunan infrastrukturnya.

Dari keseluruhan pemimpin yang dinilai oleh Bloomberg yaitu delapan pemimpin negara, Jokowi satu-satunya pemimpin dunia yang memiliki semua indikator positif untuk tiga kategori yaitu fluktuasi kurs, pertumbuhan ekonomi dan rating penerimaan publik.

Sementara itu, penerimaan publik paling tinggi dimiliki oleh Presiden Filipina Rodrigo Duterte dengan rating 83 persen, ia juga mendapatkan nilai 7,1 persen dalam upaya menjaga pertumbuhan ekonomi, namun dalam nilai tukar mata uang Peso menurun drastis 5, 29 persen atau mendapat rapor merah.

Pertukaran nilai mata uang paling rendah dimiliki oleh Presiden Tiongkok Xi Jinping yang menurut data telah turun sebesar minus 6,63 persen, paling rendah diantara yang lain.

Kedelapan pemimpin tersebut yang didata oleh Bloomberg adalah Presiden Tiongkok Xi Jinping, Perdana Menteri Jepang Shinzo Abe, Perdana Menteri India Narendra Modi, Presiden Korea Selatan Park Geun-Hye, Presiden Indonesia Joko Widodo, Presiden Filipina Rodrigo Duterte, Perdana Menteri Malaysia Najib Razak, Perdana Menteri Australia Malcolm Turnbull (disebutkan tanpa berurutan peringkat).

David Tweed from Bloomberg (who wrote the article at Blommberg) confirmed that he diid not say that "Joko Widodo is the best leader in Asia for 2016"

http://politik.rmol.co/read/2017/01...nah-Beri-Gelar-Pemimpin-Terbaik-untuk-Jokowi-