FINANCIAL AND ANALYSIS

Gov’t Vows More Job Opportunities in 2012

2011-09-26T03:44:00.001-07:00

The Indonesian government targets 500 thousand new jobs for every one percent economic growth, compared to the Indonesian House of Representative’s target of 450 thousand. (IFT/MS FAHMI)
The Indonesian government expressed optimism that providing more job opportunities and controlling inflation will sustain people’s purchasing power.
The Indonesian government targets 500 thousand new jobs for every one percent economic growth, compared to the Indonesian House of Representative’s target of 450 thousand.
The government launched the Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development (MP3EI) program to, among others, provide more job opportunities, which consequently will sustain the people’s purchasing power, in addition to controlling inflation.
“We will draw in more investments to provide more jobs,” said Hatta Rajasa, the Coordinating Ministry for the Economy.
Juniman, an economic expert at PT Bank Internasional Indonesia Tbk (BNII), however, warns that Indonesia is still far from achieving high-quality economic growth as the country still relies primarily on the non-tradable sector, which does not provide a lot of job opportunities.
“Jobs in the informal sector have increased sharply in the last few years, but economic growth is not behind this,” Juniman said.
The real sector is not developing rapidly as the State Budget allocates most of its funds for routine spending such as salary payments for state employees. Allocating most of the government capital expenditure for infrastructures will drive the economic growth at 8-10 percent. The current budget structure will only present a 6 percent, or even lower growth

Bank Indonesia Sustains Rupiah and Bank Liquidity

2011-09-26T03:41:00.000-07:00

Bank Indonesia should maintain the exchange rate given the range and liquidity of banking.
– Economic experts advise Bank Indonesia (BI) to keep the rupiah exchange rate within a determined range and ensure the liquidity of banks to keep Indonesia’s macroeconomic condition stable and hence help the country pull through the global economic turmoil.
Telisa Aulia Falianty, an expert in macroeconomy and monetary affairs at EC-Think, said that the BI Board of Governors Meeting will issue policies aimed at assuring the stability of the country’s macroeconomic condition.
BI, according to Telisa, will announce macro prudential policies connected with the flexibility of capital adequacy ratio to avert a banking bubble in the country.
Umar Juoro, an economic expert at the Center Indonesia for Development and Studies, said that the macroeconomy prudential policy that BI can take is controlling the rupiah exchange rate to move within Rp 8,700-8,800 per US dollar and prevent it from reaching Rp 9,000 per US dollar, otherwise there will be panic in the market despite the country’s strong economic fundamentals.
BI, says Umar, must also ensure that banks remain liquid to prevent a monetary disruption. Inflation rate and investment climate are other matters that BI must attend to.
Perry Warjiyo, Director of Macroecomic Policy and Monetary Studies at BI, confirms that the central bank has already prepared three policies to respond to the current global crisis. The first policy is to control the rupiah’s exchange rate using the country’s foreign exchange reserves. BI will also buy government securities using the rupiah.
The second policy will be to improve the country’s crisis management protocol that will keep the rupiah and banks stable with BI and the central government works together.
The third policy will be to respond to interest rate, monetary and macro prudential policies to mitigate the impacts of the global economic slowdown on Indonesia.

IHSG Valuation Below Fair Value

2011-09-26T03:40:00.000-07:00

The valuation of the Composite Stock Price Index (Index Harga Saham Gabungan / IHSG) as of September 23 was below the fair value, according to several capital market analysts. Based on data compiled by Bloomberg, the Index’s price to earning (P/E) ratio reached 14.96, its lowest since 2010.
Danny Eugene, Head of Research of PT Mega Capital Indonesia, said that the valuation is still higher compared to during the 2008 monetary crisis. However, the depreciation of more than 12 percent in the past week has decreased the P/E drastically. Within the last decade, except in 2008, it stood at around 16.00 to 24.00.

“The Index's appreciation in last weekend's trade closing does not mean that it will rebound,” he said. On Friday’s trade, it was closed at 3,426.24, a 1.7 percent increase from the previous trade closing.

Investors should take advantage of the momentum and enter the market as the fundamental performances of local publicly-listed companies are still strong, and the third quarter financial statement could be still positive, according to Danny.

Indonesia’s economic growth is supported by domestic consumption, making it unaffected by global economic deceleration, according to Andi Ferdinand, analyst of PT Batavia Prosperindo Sekuritas. In the 2008 and 2009 crisis, Indonesia still booked a positive economic growth.

Moreover, Indonesia's export to Europe and the US is only 13.4 and 10 percent, respectively, compared to Asian market's at more than 50 percent. Hence, the IHSG may toughen in the near future. "This is also helped by the bailout fund for Greece which be granted soon, coupled with the positive sentiment from the third quarter financial statements of local companies," he said.

Indonesia also has a better risk management system than in 2008, according to Edwin Sinaga, Chief Director of PT Financorporindo Nusa. Furthermore, the government is equipped with a more ready crisis management protocol.

Domestic Consumption

Erlangga Mantik, Deputy Coordinating Minister of Macro Economic Affairs, said that Indonesia is strong enough to face the crisis, with an economic growth averaging six percent. Moreover, the country will rely on the consumption of its 238 million population to support the growth. The government has been maintaining public purchasing power by raising investments, exports and the consumption rate.

Meanwhile, decreasing exports to the European Union and the US can be compensated by the strong trade with the ASEAN and other Asian countries, according to Lana Soelistianingsih, economist of PT Samuel Sekuritas Indonesia.

In the financial sector, Bank Indonesia can intervene with the bond market and restrain the volatility of the rupiah as foreign exchange reserves have significantly reached US$ 122 billion.

Cristine Lagarde, Acting Director of the International Monetary Fund, said that the current global crisis can be overcome by creating a global trade balance. However, this has been suggested in 2008, through the depreciation of the Chinese yuan against the US dollar. The Chinese government is likely to go against the idea as it may decrease the country's export competitiveness, according to Latif Adam, Economist of the Indonesia Institute of Sciences.

Prasidha Plans for Quasi-Reorganization

2011-09-26T03:38:00.001-07:00

Prasidha is targeting revenue from sales of 3,000 tons of instant coffee at Rp 216 billion, and sales of 90 tons of coffee powder at Rp 3.24 billion. (BLOOMBERG/DANIEL ACKER)
- PT Prasidha Aneka Niaga Tbk (PSDN), a coffee powder and instant coffee beverage manufacturer, is planning to conduct quasi-organization to eliminate deficit of Rp 568.14 billion (US$ 64.76 million) by lowering the company’s issued and paid up capital. The deficit was due to the company’s losses caused by the economic crisis in 1998. The balance deficit still puts a heavy load on the company.

Petrus Arif, Corporate Secretary of Prasidha, said that the quasi-reorganization will be conducted in phases. These will be done by adding the balance in the difference of restructured transaction values of the controlling entity with Rp 430.3 million to the deficit that would result to the balance of the difference between the transaction value to zero, and the deficit becomes Rp 568.57 billion.

Then, it will be subtracted with the reevaluation results of the company’s assets and liabilities, with difference of Rp 49.8 billion. Thus, the balance will be Rp 518.77 billion.

The deficit balance will then be eliminated by lowering the company’s issued and paid up capital. It is conducted by lowering the company’s nominal share value from Rp 500 per share to Rp 125 per share. Therefore, the company’s issued and paid up capital will decline Rp 180 billion to Rp 540 billion from Rp 720 billion.

Aside from conducting quasi-reorganization, the company is also actively conducting restructuring of several of its unproductive subsidiaries to create performance growth. In May 2011, Prasidha sold its subsidiary in real estate, PT Aneka Widya Graha.

In June 2011, Prasidha restructured two of its subsidiaries, PT Aneka Sumber Kencana and PT Lampung Sumber Kencana Pelleting Factory. Both subsidiaries were merged to Prasidha.

IFT Research Department assessed that the global economic recovery will be very decisive for the demands of coffee seeds, rubber crumbs, chocolates, and their processed products in becoming Prasidha’s sources of revenue. Prasidha relies heavily on export market, contributing more than 80 percent of the company’s sales.

Positive Impact

Petrus explained that with the quasi-reorganization, the company can work on its performance without having burdened by the deficit in the financial reports. The company can also provide significant impact for shareholders by paying out dividends.

"The improvement of the company’s financial condition can raise investor interest and attraction to own the company’s shares, causing Prasidha’s share trade to be more liquid,” he said.

The quasi-reorganization is planned to be conducted after obtaining approval from the company’s shareholders in the special assembly in October 26, 2011.

In the last three years, the company succeeded in increasing performance with an average net profit of Rp 18.32 billion per year. The company is also optimistic that it can generate profits in the future, with the potential rise of demands for coffee and rubber crumbs in the domestic and export markets.

Prasidha is targeting revenue from sales of 3,000 tons of instant coffee at Rp 216 billion, and sales of 90 tons of coffee powder at Rp 3.24 billion. This will be supported by the company’s coffee production line capacity in Sidoarjo which has fully reached capacity. Instant coffee and coffee powder sales contribute 30 percent to the company’s revenue for this year.

Prasidhas share price on Friday’s trade closing remained at Rp 285.

Toyota Maintains 36% Market Share

2011-09-26T03:36:00.000-07:00

PT Toyota Astra Motor targets to maintain market share of at least 36% of the total national automotive sales. The strategy to maintain a minimum market share is to launch complete products in all segments.

PT Toyota Astra Motor, the agent holder of the Toyota brand, targets to maintain 36 percent market share of the total national automotive sales in upcoming years. Johnny Darmawan, President Director of Toyota Astra, said the company is confident with the target despite the national market projection of 1 million units.

The confidence is based on Toyota Motor Corporation’s decision – through PT Toyota Motor Manufacturing Indonesia, to add investments for production capacity increase in response to future market growth.

With a 36 percent market share, Toyota Astra is projecting a conservative growth of nine percent, from 2010’s sales of 280,989 units. This year's national automotive market is estimated to grow 11 percent, compared to 2010.

Throughout January-August, Toyota Astra achieved sales of 207,850 units, 68 percent from year end target. In order to reach the target, Toyota Astra must be able to sell 98,150 units.

According to Djoko Trisanyoto, Marketing Director of Toyota Astra, the strategy to maintain a minimum market share is to launch complete products in all segments. The company will also ensure Toyota’s outlets are widely spread and maintain the quality of services. Toyota's strategy in the future is not just to sell cars, but provide good service.

Another brand holder agent, PT Suzuki Indomobil Sales, revises the wholesales – the delivery from agent to dealerships, sales target in 2011 to 9,000 units from the previous target of 8600 units. Davy Tulian, Director of Sales at Suzuki, said the company’s market share target is based on the 840 thousand units of national car sales assumptions.

The target revision is supported by high demands. The Mega Carry pick-up model, for example, booked average sales of 1,000-1,400 units per month.

According to Davy, dealership requests 2,800 units per month, but only 1,400 units of that demand could be met. Suzuki plans to increase production of Mega Carry to 3,600-4,200 units per month in response to high demands.

Sales Increase

Jongkie D Sugiarto, First Chairman of the Indonesia Association of Automotive Industries (Gaikindo), said this year’s car sales are projected to reach 850 thousand units. Sales in January-August 2011 amounted to 580,155 units.
Jongkie estimated the wholesale sales in September to increase to 80 thousand units, compared to August’s sales of 74,161 units. The increase is supported by the normal amount of working days post the Idul Fitri holidays. Sales in September will be dominated by passenger cars, with price ranging from Rp 100 million to Rp 150 million (US$ 11,400 to US$ 17,100).

Pharmaceutical Raw Materials Stable Despite Rupiah Weakening

2011-09-26T03:35:00.000-07:00

– The Indonesian Pharmaceutical Manufacturers Association estimated that the weakening of rupiah towards US dollar that is currently occurring will not affect the national pharmaceutical industry’s raw material prices. Kendrariadi Suhanda, Vice Secretary General of the Indonesian Pharmaceutical Manufacturers Association, said that the weakening of rupiah is still in tolerable levels and has not affected yet the national pharmaceutical industry’s production costs.

This is triggered by the stable raw material prices in the raw material import countries. "The effect of the weakening of rupiah towards US dollar will be seen in the next one to two months,” Kendriadi said to IFT.

According to him, national pharmaceutical manufacturers usually conduct raw material purchase contracts for shipments in the next one or two months. “Manufacturers usually anticipate fluctuations of rupiah towards US dollar by increasing raw material supplies,” he said.

National pharmaceutical manufacturers have added their raw material supplies since early second half of 2011 to ensure that they will be able to meet demands until the end of the year. Around 95 percent of raw materials are still imported from China, India, and Europe. With large dependency towards imported products, raw material cost components makes up around 25 percent national pharmaceutical production costs in Indonesia.

Based on BI, the rupiah exchange rate weakened to Rp 8,988 per US dollar in the fourth week of September 2011.

He explained that national pharmaceutical manufacturers have conducted production efficiency to maintain operating margins. This step is a solution so that pharmaceutical manufacturers do not directly adjust drug sales price when raw material prices increases. “Manufacturers cannot directly raise sales price if there are fluctuations in production costs,” he said.

The association projects that national pharmaceutical raw material imports in the second half of 2011 will reach Rp 4.77 trillion (US$ 543.78 million) to Rp 4.81 trillion (US$ 548.34 million), down 18.1 percent from the first half of 2011.

The decline of raw material purchases by pharmaceutical manufacturers in the second half is affected by Ramadan and Idul Fitri, when drug sales is estimated to decline up to 15 percent. The decrease of raw material imports in the second half is also in line with the national pharmaceutical sales decline in the second half of 2011, of 18.1 percent to Rp 17.1 trillion, from Rp 20.9 trillion in the first half of this year.

PT Pyridam Farma Tbk (PYFA), a local pharmaceutical manufacturer, said that all of the company’s raw materials are imported from several countries such as China, India, and European countries. China and India are the largest importers of raw materials for prescription drugs in Indonesia, since raw material costs of the two countries are cheaper than European countries.

Ryan Arvin, Corporate Secretary of Pyridam Farma, said that the company buys raw materials from importers in Indonesia, and the transactions always use US dollar. “The strengthening of rupiah and yuan towards US dollar in the first half of 2011 has caused raw materials for drug prices to become cheaper,” Ryan said.

Pyridam’s share price on Friday’s trade closing slightly dropped 0.6 percent to Rp 154.

Gov't Adapts European Tire Industry Standards in 2014

2011-09-26T03:32:00.000-07:00

The government targets the national tire industry to adapt European standards of tire production in 2014, after the country's infrastructure is ready. (IFT/MS FAHMI)

The government targets the national tire industry to adapt European standards of tire production in 2014, after the country's infrastructure is ready. Panggah Susanto, Director General of the Manufacturing-based Industry at the Ministry of Industry, said the European standards adaption for Indonesia National Standard (SNI) tire production cannot be directly applied. This is due to the national infrastructure consideration and the readiness of industry players.

The application of these standards would not burden the national tire industry if the road infrastructure is adequate. The developments of infrastructure projects are expected to take place in 2014, in line with the Indonesia Acceleration and Expansion of Economic Development Masterplan (Masterplan Percepatan dan Perluasan Pembangunan Ekonomi Indonesia/MP3EI).

Currently, the numbers of tire imports from Europe are under five percent of the total national tire sales. Imported tires for heavy equipment needs are mostly from Japan and China.

Arijanto Notorahardjo, General Manager of Marketing at PT Gajah Tunggal Tbk (GJTL), said the government’s plan to adapt European standards will potentially burden the national tire manufacturers. Especially, with the current standard socialization for exports to Europe that will be implemented in 2012.

Currently, the government is socializing the labeling of tire products for export to Europe with the inclusion of quality, performance, safety, and resistance scroll.

In the first semester of 2011, Gajah Tunggal export value reached Rp 2.24 trillion (US$ 255.36 million). Forty-five percent went to the United State market, 20 percent to Europe, 15 percent to the Middle East, 13 percent to Asia, and seven percent to other countries.

According to Arijanto, Gajah Tunggal’s export to Europe consisted of winter tires. This year, Gajah Tunggal received 1.1 million to 1.2 million units of orders for winter tires.
Investment Readiness
Panggah said the national tire industry’s investment is able to meet the growing needs of the domestic automotive industry. Currently, 70 percent of the national production goes to the export market and 30 percent for domestic.

The main factor supporting the national tire industry international competitiveness is the abundance of natural rubber raw materials. Of the 2.4 million tons natural rubber production in 2010, only 15 percent were utilized by the national processing industry. Seventy-five percent were exported.

According to Panggah, investments into synthetic rubber (styrene butadiene rubber) are needed to complement the downstream rubber industry. The national tire industry’s need for synthetic rubber is still 100 percent met through imports.

PT Chandra Asri Petrochemical Limited (TPIA) is currently constructing a butadiene factory with an investment of US$ 135 million. The project will be done in stages through 2013, with a production capacity of 100 thousand tons per year.
Panggah said the government plans to impose a custom exit for natural rubber to be processed domestically and reduce the export of raw goods. The government will also encourage investments in the rubber downstream sector through tax incentives, in accordance to Government Regulation No. 62 Year 2008 regarding Income Tax Incentives for Specific Investment Business Sector and Specific Areas.
National Tire Export Market Expansion

IFT Research Department assessed that the government's plans to adapt the European tires standard for the Indonesia National Standard is a positive step. The standard adaption can increase the national market share. The tire industry – the country’s downstream industry of natural rubber, has the potential to increase production capacity. Foreign investments can also enter the country to build tire factories. Therefore, 84 percent of national natural rubber that were previously exported, can be absorbed in the domestic market

The government’s plan to impose exit custom for natural rubber will optimize rubber products nationwide In the future, Indonesia can export value-added products and not just raw materials.

Indonesia is the second largest natural rubber producer in the world after Thailand. Value of rubber commodity exports and rubber goods showed an increase growth every year.
Sixteen percent of national production is consumed domestically, while the remaining 84 percent is exported. As many as 55 percent of domestic consumption is absorbed by the tire industry, while the rest is used by the retread industry, footwear, latex goods, gloves, condoms, and rubber thread.

Clipan Finance Books Rp 2.5 T Finance Portfolio

2011-09-26T03:29:00.001-07:00

Clipan Finance saw a 60.25 percent growth in finance portfolio to Rp 2.5 trillion as of August 2011 from Rp 1.56 trillion year-on-year (YOY) mainly attributable to new branch offices opening. (IFT/DINUL MUBAROK)
PT Clipan Finance Tbk (CFIN), a mid-scale finance company, saw a 60.25 percent growth in finance portfolio to Rp 2.5 trillion as of August 2011 from Rp 1.56 trillion year-on-year (YOY) mainly attributable to new branch offices opening.
Dwijanto, Corporate Secretary of Clipan Finance, said that the company has opened six branch offices as of August 2011 that the company has had 31 units. It plans to open four more in Sumatera and Sulawesi. Clipan Finance prepares Rp 500 million to Rp 700 million for each branch office.
As of August 2011, around 60 percent of its finance portfolio was to consumer financing. Around 30 percent of which was to heavy equipment finance portfolio and another 10 percent was factoring portfolio. As for consumer financing, the company preferred to focus on second-hand car finance portfolio.
A growth in finance portfolio prompted its assets to grow twofold to Rp 4 trillion in January to August this year from Rp 2 trillion year-on-year (YOY). Dwijanto estimated that the assets will continue to grow by year-end. This year, the company targets its finance portfolio to reach Rp 2.5-4 trillion.
Lower Rights Issue
To achieve its finance portfolio target, the company plans to sell 1.1 billion rights issue stocks at Rp 400 per share. The company targets to reach Rp 486 billion from the rights issue. The rights issue price is lower than the initial plan at Rp 500 per stock in order that investors can take up their rights and their shares will not be diluted. "A decline in the market forces us to adjust our offering price," he said.
Rights issue proceeds will be used for heavy equipment finance portfolio but the company will use it for other sectors as well next year. The company has had a loan commitment from several banks for its finance portfolio.

Sharp Eyes Rp 6.5 T Sales

2011-09-26T03:25:00.000-07:00

Sharp Electronics targets fiscal year 2011-2012 sales to rise by 18 percent to Rp 6.5 trillion (US$ 741 million), compared to fiscal year 2010-2011 sales of Rp 5.5 trillion. (BLOOMBERG/KIMIMASA MAYAMA)

JAKARTA (IFT) - PT Sharp Electronics Indonesia, an electronics manufacturer from Japan, targets fiscal year 2011-2012 sales to rise by 18 percent to Rp 6.5 trillion (US$ 741 million), compared to fiscal year 2010-2011 sales of Rp 5.5 trillion. The sales target was set in accordance with the projected nationwide electronic sales growth of 20 percent per year.

Herdiana Anita, Marketing General Manager of Sharp Electronics Indonesia, said 50 percent of the target was met in the first six months of 2011. "Sales in April to September reached Rp 3.3 trillion," she said.

According to her, the target will be supported by the increased sales of products, such as televisions and refrigerators. Refrigerator sales contributed about 30 percent of the company’s total sales. Sales of televisions, such as liquid crystal display (LCD), accounted for 19 percent while air conditioners contributed 12 percent of total sales.

Sharp had a 22 percent market share in 2010. This year, the company targets increasing its market share to 25 percent.

Sharp’s products with the highest sales in Indonesia are partially imported. Approximately 15 percent of premium refrigerator products are imported from Thailand. Meanwhile, products such as LCD televisions are imported from Malaysia.

Meanwhile, PT LG Electronics Indonesia, Sharp's competitor, targets this year’s sales to reach Rp 8.5 trillion, a 63 percent growth from 2010’s Rp 5.2 trillion. Kim-Weon Dae, President of LG Electronics Indonesia, said 50 percent of the sales target has been achieved in first half of 2011. "Sales in the first semester amounted to over US$ 500 million," he said.

He said that sales of televisions, air conditioners and refrigerators contributed an average of 25 percent to the company’s total sales.

On the other hand, PT Hartono Istaka Technology, local manufacturer of Polytron brand, targets this year’s sales to reach Rp 2.5 trillion, 25 percent higher than 2010's Rp 2 trillion. The company will launch new models of air conditioners, refrigerators and televisions to support the sales target.

Based on data from the Electronic Marketer Club (EMC), national electronics sales in January-July 2011 reached Rp 14 trillion, increasing 23 percent over the same period last year. Televisions and refrigerators dominated sales.

Gov’t Sees Newmont Divestment Completion

2011-09-19T19:54:00.001-07:00

The government said that the 51 percent stake divestment of PT Newmont Nusa Tenggara will soon be completed if the 2.2 percent share ownership issue of PT Indonesia Masbaga Investama in NNT is cleared.

JAKARTA (IFT) - The government said that the 51 percent stake divestment of PT Newmont Nusa Tenggara (NNT), a company that mines gold and copper in Batu Hijau, West Nusa Tenggara, will soon be completed if the 2.2 percent share ownership issue of PT Indonesia Masbaga Investama in NNT is cleared. Gita Wirjawan, Head of the Investment Coordinating Board (Kepala Badan Koordinasi Penanaman Modal/BKPM), said that they will speak with the NNT management to ensure that Newmont Ventures Ltd (NVL), a subsidiary of Newmont Mining Corp., no longer has power of attorney over the voting rights of Masbaga in NNT.

"If the voting rights are relinquished, NNT will release the 51 percent stake to the government," said Gita.

Based on a letter from Blake Rhodes, Vice President of NVL, addressed to the Director of NNT, Martiono Hadianto, NVL revoked the power of attorney to use voting rights over Masbaga’s shares in the event of a default on September 16, 2011. The revocation was intended to ensure NNT's seven percent stake divestment to the Government Investment Financial Center (Pusat Investasi Pemerintah Keuangan) valued at US$ 246.8 million on May 6, 2011.

NVL’s consolidated financial statements show that in 2010, NVL approved a loan to Masbaga worth US$ 71.3 million to buy 2.2 percent stake in PT Pukuafu Indah in NNT. The loan was deemed in violation of the divestment’s due process because Masbaga diverted 2.2 percent voting rights in NNT to Newmont.

Newmont Mining Corp., an American mining company and one of the largest in the world, formed the consortium, Nusa Tenggara Partnership BV along with Japan's Sumitomo Corp., which now has a 49 percent stake in NNT. The remaining 51 percent shares are owned by PT Multi Daerah Bersaing (24 percent), Pukuafu (17.8 percent), Masbaga (2.2 percent), and the Government Investment Center (Pusat Investasi Pemerintah/PIP) of the Ministry of Finance (seven percent).

The purchase of seven percent stake of NNT by PIP (US$ 246.8) was questioned, particularly by the Commission VII and XI of the House of Representatives and the Government of West Nusa Tenggara Province. They said that the seven percent stake divestment of 2010 should belong to PT Daerah Maju Bersaing (DMB), the consortium of three local governments in West Nusa Tenggara. DMB previously teamed up with PT Multi Capital, a subsidiary of PT Bumi Resources Tbk Minerals (BRMS), to form PT Multi Daerah Bersaing and purchased 24 percent stake divestment of NNT for the period of 2006-2009, worth US$ 884 million.

PIP has not settled its seven percent shares purchase to NNT. This is because the government is under pressure from the legislature and local governments in West Nusa Tenggara for the State Audit Board to audit the share purchase. The House also questions Masbaga’s 2.2 percent stake ownership in the NNT, the funding of which was derived from NVL. This caused allegations of links between Masbaga and Newmont Mining.

Soritaon Siregar, Head of PIP, said that the divestment has not been paid because the Ministry of Energy and Mineral Resources and the Investment Coordinating Board have not given their approval regarding changes in the structure of foreign capital in Indonesia.

Thamrin Sihite, Director General of Minerals and Coal of the Ministry of Energy, said that the ministry is still investigating the issue of the 2.2 percent sales of shares. If the allegations are proven correct, the government or the national companies' right to vote will be rescinded at the general meeting of shareholders. Meanwhile, the philosophy of divestment is that 51 percent will be controlled by the state or national companies.

When confirmed by IFT, Martiono Hadianto, Director of NNT, said that NNT is ready to respond to BKPM’s inquiries regarding the NVL’s power of attorney revocation of Masbaga’s voting rights in NNT.

Regional Markets Move Mixed

2011-09-19T19:39:00.001-07:00

Regional markets moved mixed this morning. Japanese and Australian markets fell but Hong Kong markets gained. Negative sentiment from Italy's credit rating downgrade by Standard & Poor's did not influence the gain in Hong Kong markets.
Nikkei 225 fell by 1.16 percent to 8,761.65 in Tokyo and S&P/ASX 200 slid by 0.53 percent to 4,059.80 in Sydney. Hang Seng rose by 0.48 percent to 19,008.80 in Hong Kong.

Rupiah Nears Seven Month Low

2011-09-19T19:38:00.003-07:00

The rupiah, which is leading the Asian currencies’ decline against the US dollar, is now close to its lowest level in seven months.
According to Bloomberg, the rupiah declined further yesterday by 1.6 percent to Rp 8,945 per US dollar, from Rp 8,935 per US dollar recorded last February 11.
Bank Indonesia (BI) said that the eurozone debt crisis is the main driver behind the rupiah’s declining trend. It is projected that the crisis will continue to pressure Asian currencies until a solution is found, according to Perry Warjiyo, the Director of Economic Research and Monetary Policy at BI.
“The market is still wary of the eurozone debt crisis. Asian currencies, including the rupiah, will remain pressured. Bank Indonesia has been actively controlling the circulation of the rupiah,” said Gundy Cahyadi, an economic expert of the Oversea-Chinese Banking Corp in Singapore.
In addition to monitoring the rupiah, BI also implemented measures to curb the rupiah volatility. BI, according to Perry, does not only watch the rupiah’s daily movement, but also the long term trend.
Perry also said that Bank Indonesia still has enough foreign exchange reserves to intervene with the rupiah's depreciation. As of Friday, forex reserves stand at US$ 122 billion.
The Jakarta Stock Exchange on Monday’s trading closed down 80.13 points (minus 2.09 percent) to 3,755.05

September Inflation Stays despite Rupiah Depreciation

2011-09-19T19:38:00.001-07:00

Bank Indonesia assures that the several-week long depreciating rupiah against the US dollar will not affect Indonesia’s September inflation significantly. Inflation is the said month is estimated to fall within the manageable level. Perry Warjiyo, Director of Economic Research and Monetary Policy, explained that the declining rupiah has not significantly raised the price of imported products, which otherwise will accelerate inflation. The European debt crisis, according to Perry, will be the main driver of the September inflation.
Lana Soelistianingsih, an economic expert at PT Samuel Sekuritas Indonesia, confirms that Indonesia’s Central Statistics Agency uses import figures to measure the impacts of a depreciating rupiah.
Rusman Heriawan, Head of the Central Statistics Agency, estimates the September inflation to end at 0.5 percent with high college fees and the price of gold as the main drivers.
The August month-on-month inflation equaled to 0.93 percent, while the January-August and August year-on-year inflation reached 0.93 percent and 5.15 percent, respectively.
Rully Nova, an economic expert at PT Bank Himpunan Saudara 1906 Tbk (SDRA), said that the Rp 8,800 per US dollar exchange rate is still positive for Indonesia’s export and import. Bank Indonesia, Rully says, should have enough foreign exchange reserves to prevent the rupiah from significantly dropping.

Tsingshan Steel Invests US$ 5 B in Nickel Smelter

2011-09-19T19:37:00.001-07:00

Tsingshan Steel Group will invest US$ 5 billion in Indonesia to build a nickel smelter and develop an integrated industry from upstream to downstream in Central Sulawesi and Southeast Sulawesi. (BLOOMBERG/MADELENE PEARSON) JAKARTA - Tsingshan Steel Group, a stainless steel manufacturer from China, will invest US$ 5 billion in Indonesia to build a nickel smelter and develop an integrated industry from upstream to downstream in Central Sulawesi and Southeast Sulawesi. MS Hidayat, Minister of Industry, said the investment will be done in two phases. First, the construction of the nickel smelter with investment of US$ 1 billion, and second, the construction of the second phase smelter for US$ 4 billion.
According to Hidayat, Tsingshan produce stainless steel. The target is in line with the government‘s policy to impose a ban on exports of raw materials from the coal and mineral sectors in 2014. The policy is in accordance to Law Number 4 Year 2009 on Mineral and Coal.
The policy applies to exports of non-renewable natural resources by applying high export duties. The non-renewable natural resources are bauxite, copper, nickel, iron ore and iron sand.
Hidayat said the policy could be realized if there is an investment in the downstream sector. Therefore, the government will encourage investments, both in the upstream and downstream sectors, through tax incentives.
In terms of Tsingshan investment, the government is considering to grant the company a tax exemption incentives within a certain time period (tax holiday) or reduction of taxes (tax allowance). However, Tsingshan will obtain tax incentives if the company partners with local investors and through concessions.
"We will discuss the matter with the Investment Coordinating Board (Badan Koordinasi Penanaman Modal), the Ministry of Energy and Mineral Resources, and the Ministry of Finance.
The tax holiday will be granted to a number of industrial sectors, such as steel and basic metals, petrochemicals, capital goods, renewable natural resources and telecommunications.
Local Partnership
Panggah Susanto, Director General of the Manufacturing-based Industry at the Ministry of Industry, said Tsingshan will partner with Bintangdelapan Group, a group of chemical, oil and gas, mining, and timber companies.
The company initially targets to build a nickel smelter with an initial production capacity of 50 thousand tons per year. In the next stage, the capacity will increase to 100 thousand-150 thousand tons per year.
According to Panggah, Tsingshan is currently conducting a feasibility study in Sulawesi. "They chose Sulawesi because the supply of raw materials are there," he said

Bandwidth-Based Frequency Tariff Lowers Operators’ Expenses

2011-09-19T19:36:00.001-07:00

The usage rights fee (BHP) based on band frequency has the potential to lower costs of frequency tariff in the long run compared to usage rights fee with radio station license (ISR) base. (IFT/STANLIE)

JAKARTA - The usage rights fee (BHP) based on band frequency has the potential to lower costs of frequency tariff in the long run compared to usage rights fee with radio station license (ISR) base. As of the second quarter of this year, a number of operators have lower frequency lease costs.

According to the IFT Research Department, in the second quarter of 2011, PT Telekomunikasi Indonesia Tbk (TLKM) has 3.8 percent year-on-year decrease of frequency expenses to Rp 1.77 trillion from Rp 1.84 trillion. The decrease burden can be attributed to the implementation the frequency band-based usage rights fee in December 2010.
In the second quarter of 2010, Telkom’s radio frequency usage was increased by an average of 37 percent to Rp 1.84 trillion from Rp 1.08 trillion in the same period of 2008. At that period, the government still imposed radio station license usage rights fee, making any addition of base stations to cause an increase in corporate expenses.
Dian Siswarini, Director of Services & Technology at PT XL Axiata Tbk (EXCL) said the bandwidth-based frequency is better for operators as it improves efficiency.
Last year, XL paid Rp 1.09 trillion for frequency expenses. This year, the company’s operating expenses is estimated to be the same as last year. From the second quarter of 2008 until second quarter 2011, XL’s operating expenses rose with 13.7 percent CAGR from Rp 4.51 trillion to Rp 6.64 trillion. As of the end of June 2011, the company had 24,971 units of 2G and 3G BTS.
The government set a new regulation on frequency tariff from the Decree of the Minister of Communications and Information Technology. The bandwidth-based usage rights fee is applied to all operators with GSM and CDMA operating licenses who are obliged to pay annual usage rights fee for their frequency use measured by a specific formula for 10 years.
At the close of Monday’s trading, XL's shares closed at Rp 5,050, while Telkom's closed at Rp 7,450.
Indosat Expenses Increase
In contrast to Telkom and Telkomsel, PT Indosat Tbk (ISAT) continues to have increases in frequency usage from the second quarter of 2008 to the second quarter of 2011, with an average load increase of 20 percent. The continuing increase is the result of Indosat’s lack of network expansions.
The company’s frequency usage is used mostly on basic services such as voice and instant messaging services, followed by data services. To minimize frequency load, the company will aggressively expand its networks throughout Indonesia.
"We will extend our coverage to the eastern parts of Indonesia," said Djarot Handoko, Division Head of Public Relations at Indosat.
On Monday’s trade closing, shares of Indosat stood at Rp 5,750.

Debt of Five Property Companies Rises in First Half

2011-09-19T19:35:00.002-07:00

The highest climb of debt was recorded by PT Ciputra Surya Tbk, with debt of Rp 194.5 billion in the first half of 2011 JAKARTA– The total debt from five property companies with assets from Rp 2 trillion (US$ 228 million) to Rp 5 trillion (US$ 570 million) rose to Rp 200.8 billion in the first half of 2011, according to IFT Research Department.
The highest climb of debt was recorded by PT Ciputra Surya Tbk (CTRS), with debt of Rp 194.5 billion in the first half of 2011. The higher debt was caused by increasing loan from PT Bank Mega Tbk (MEGA), from Rp 148.1 billion to Rp 369.7 billion. The loan was obtained by Ciputra’s subsidiary, PT Win Win Realty Centre, for the development of Ciputra World phase I.
PT Intiland Development Tbk (DILD) also booked more liabilities. Its debt rose Rp 108.4 billion to Rp 290.3 billion in the first half of 2011 was due to loan from PT Bank Bukopin Tbk (BBKP), which increased from Rp 128.9 billion to Rp 203.9 billion. The loan is used as working capital loan and investment.
Archied Notopradono, Director of Intiland Development, said that the bank loan will be used to finance long term projects such as superblocks.
This year, the company is planning to develop several superblocks and midscale residential areas such as Graha Natura Surabaya, mixed use project in Cengkareng, 1Park apartment, and expand Whiz Hotel development. Intiland is also exploring the possibilities of loan from PT Bank Central Asia Tbk (BBCA).
“Of the total requirement of Rp 1 trillion for the company’s capital expenditure (capex) in 2011, Rp 500 billion will be from internal capital. The remaining will be from bank loan,” he said.
There are also several companies that have reduced their debt. Debt of PT Pakuwon Jati Tbk (PWON) declined to Rp 1.36 trillion in the first half of 2011. Debts that were significantly reduced were bonds in senior secured notes and notes in 2015.
Senior secured notes that was issued was valued at Rp 110 billion, and was issued by its subsidiary. This was conducted to pay off some of the company’s debt and to acquire shares of PT Artisan Wahyu, the previous owner of Gandaria project.
Herman Subianto, Head of Corporate Finance at Pakuwon Jati, said that the decline of Pakuwon Jati debt was from payment of mature debts. “There are several debts that have and will be mature, including a bond that will mature in November 2011,” he said on Friday.
Debt of PT Alam Sutera Tbk (ASRI) went down around Rp 65.8 billion due to declining debt from PT Bank Mutiara Tbk (BCIC) and PT Bank Central Asia Tbk (BBCA). Debt from the two banks was to strengthen the company’s working capital.
Ability to Repay Loan
Although there is a rise of debt, the companies’ ability to pay off loan interest is still strong, and is supported by rising revenue. Interest coverage ratio from Ciputra Surya increased from 26 to 78 due to significant operating profit rise. PT Sentul City Tbk (BKSL) also generated high interest coverage ratio, despite higher debt.

Allianz Utama Posts 76.66% Drop in Gross Profit

2011-09-19T19:35:00.000-07:00

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PT Allianz Utama Indonesia announced recently that its gross prodit decreased 76.66 percent to Rp 7 billion as of the first semester of 2011 from Rp 30 billion year-on-year (YOY) due to a decrease in investment returns. JAKARTA - PT Allianz Utama Indonesia, a large-scale general insurer, announced recently that its gross prodit decreased 76.66 percent to Rp 7 billion as of the first semester of 2011 from Rp 30 billion year-on-year (YOY) due to a decrease in investment returns.
Don Nguyen, President Director of Allianz Utama, said that the insurer saw a 67.56 percent decline in investment returns to Rp 12 billion in the first half of 2011 from Rp 37 billion YOY. Meanwhile, it gained profit from its government bond sales in the first semester of 2010 valued at Rp 100 billion.
According to Nguyen, the lower gross profit did not affect the company’s premium revenue. In the first semester of 2011, its premium revenue grew 6.36 percent to Rp 401 billion from Rp 377 billion YOY due to high vehicle insurance sales.
Victor Sandjaja, Deputy President Director of Allianz Utama, said that the insurer saw a 72.87 percent increase in vehicle premium revenue to Rp 110.86 billion from Rp 64.12 billion YOY in line with growing vehicle sales in Indonesia.
Another contributor to the insurer’s premium revenue was miscellaneous insurance which rose 43.26 percent to Rp 86.3 billion in the first half of 2011 from Rp 60.05 billion.
Corporate customers contributed 79 percent of its premium revenue. Around 17 percent came from new retail customers while Micro, Small and Mid-Scale Enterprise Insurance contributed 4 percent. Allianz plans to boost its retail sales to 19 to 20 percent next year.

Tsingshan Steel Invests US$ 5 B in Nickel Smelter

2011-09-19T19:34:00.001-07:00

Cargill Plans for US$ 100 M Cocoa Processing Manufactory

2011-09-19T19:33:00.001-07:00

Cargill Cocoa & Chocolate Inc, a cocoa processing manufacturing company from the United States, plans to build a US$ 100 million cocoa processing manufacturing company in South Sulawesi. The new manufacturing company will have production capacity of 65 thousand tons. Construction work will start in mid-2012. Benny Wachjudi, Director General of Agro Industry of the Industry Ministry, said Cargill is currently conducting preparations and finding a location for the factory development. “The manufacturing company is expected to operate mid-2013,” Benny said.
According to him, Cargill’s investment is one of the proofs that implementation of cocoa seed export tax can effectively boost downstream industry growth. The Industry Ministry will implement cocoa seed export tax of 10 percent on shipments from September 2011 onwards.
Benny explained that the government also suggests Cargill to invest in the crude palm oil (CPO) downstream industry.
Piter Jasman, Chairman of the Indonesian Cocoa Industry Association, said cocoa seed export tax policy boosts investment in Indonesia. “With cocoa seed production reaching 600 thousand tons last year, the local processed cocoa industry utilization has only reached 40 thousand tons,” he said.
Piter explained that investment on processed cocoa manufacturing in Indonesia will affect economic growth with creation of work opportunities and narrow the gap of processed cocoa product distribution to user industries. “We target Indonesia to not only become a cocoa seed exporter in the future,” he said.
The association projects national processed cocoa production to reach 320 thousand tons, up 12.2 percent from 2010. The rise of national processed cocoa production will also be supported by expansion of eight manufacturers, with total investment of US$ 45 million.
The eight processed cocoa manufacturers are PT General Food Industries, PT Bumitangerang Mesindotama, PT Cocoa Ventures Indonesia, PT Teja Sekawan Cocoa Industries, and PT Kakao Mas Gemilang. PT Gandum Mas Kencana, PT Freyabadi Indotama, and PT Sekawan Karsa Mulia will also conduct expansion this year

Product Review: PlayBook, Good Multitasking but Less Applications

2011-08-12T22:35:00.000-07:00

The BlackBerry PlayBook tablet from RIM. (IST)
In July, Research in Motion (RIM) Ltd, the producer of BlackBerry, launched its tablet computer, PlayBook, in Indonesia. RIM aims to meet the large demand for tablet computers in the world markets, including in Indonesia.
PlayBook is the newest multimedia device for BlackBerry fans in Indonesia, reaching 2.63 million people last year. The product is the new competitor of Apple Inc's iPad.

Previously, BlackBerry users have been restricted by the limited screen space. PlayBook has a seven inch LCD with 1024 x 600 resolution touch screen technology.

In addition to its compatibility with BlackBerry, PlayBook is a fast, multitasking device, for browsing and communication.

IFT test-ran the the product, checking out its performance. Various applications were tried out simultaneously, including the browser, game (“Need For Speed”), video, BBMm and PDF files. The results, PlayBook has quick response for application shifts through the WSVGA quality- multi touch screen.

Users can also switch on the Bridge feature to connect PlayBook with a BlackBerry phone. Through Bluetooth connection, PlayBook can safely accesses data from a BlackBerry. Users can also use BBM chat, open e-mails and the usual features, such as the calendar, contacts, documents, as well as the task list.

The security of data transfer from BlackBerry to PlayBook is guaranteed. The PlayBook is the first tablet granted the Federal Information Processing Standard (FIPS) 140-2 certificate by the US government.

Its business features include Corporate Internet Browsing, Adobe Reader and Enterprise VPN. Its slot audio, micro USB and micro HDMI facilities, on the other hand, makes it easy for users to listen to music, transfer data or connect PlayBook to a big screen television.

Presentation and entertainment features are supported by high screen resolution, comparable to the iPad. The screen can also be rotated up to 360 degrees.

The navigation facility helps users to access applications, drag the menu, pinch to zoom the screen, as well as take pictures through a five megapixel camera at the back, and a three megapixel camera in front.

Less Applications

Unfortunately, only a handful of developers supply applications for the product as seen from the few applications in the App World warehouse. PlayBook only provides Facebook, but not Twitter, Linkedln or even Yahoo Messenger.

Playbook also has restricted network access since it only allows WiFi. Hence, users can only connect to the internet at hotspot locations.

Despite its lateness in entering the Indonesian market compared to other vendors, RIM sees that the PlayBook will be welcomed in the country, considering the country's millions of BlackBerry users.

The Canada-based vendor faces tough competition with Apple's domination as well as the popularity of Samsung's Galaxi Tab. According to research from Strategy Analytics, the market share of PlayBook reached 3.3 percent in the second quarter this year, far below iPad's 61.3 percent and Google Android tablet's 30.1 percent.

Exotic Indonesia

2011-08-12T22:34:00.000-07:00

Lhok Nga Beach, Banda Aceh. (IFT/CHARISMA JIWA)
The natural beauty of Indonesia is something that is worth unraveling. An array of natural tourist attraction is offered by the archipelago -- from marine tourism to historic documentation. These are few of the many travel destinations many local and foreign tourists come to visit.
Lhok Nga Beach, Banda Aceh
The Lhok Nga beach in Aceh is only 20 km from the city of Banda Aceh. The beach is sand-white, clean and untouched. The beach is surrounded by shade-providing trees, especially palm trees growing side by side lusciously. There are also pine and sugar palm trees.
The sand is white with few rocks reflecting the blue sea like an aquarium filled with colorful fish. Row of food and beverage vendors stretch under the trees, overlooking and green mountains next to the blue sea; a simple complement to the beach as a natural tourist attraction.
Aside from the natural attraction, visit the Tsunami museum. The place commemorates the natural tragedy beautifully with futuristic architecture with water elements dominating its interior and exterior. There is a room called The Light of God. The chamber represents a well, a cylinder-shaped hollow space projecting a light from the base in the shape of the word “God” written in Arabic. The wall of the cylinder well is filled with names of the Tsunami victims.
Maratua Island, East Kalimantan

(IFT/AGUNG BUDIONO)
The small island located in the Islands of Derawan is regarded by tourists as a little paradise left on Earth. Getting to the island requires a two to three hours of speed boat ride from Tanjung Redeb, the capital of Berau Regency, East Kalimantan.
The attraction of the U-shaped Island with a sharp curved edge is the diversity of its underwater ecosystem. Even with the naked eye, tourists are able to view the exotic underwater scenery. It is no wonder that The Nature Conservancy ranked Martua’s coral reefs as the fourth most diverse after Raja Ampat and the Salamon Islands.
The blue gradation the ocean reflects the depths of the sea. Colorful coral reefs and various species of fish make snorkeling and diving breathtaking adventures, luring you to linger inside the bottom of the sea. If you're lucky, you will find a group of sea turtles will swim silently in a neat formation.
Kelimutu Lake

(IFT/MELLY RIANA SARI)
The Kelimutu Lake is located east of the islands of Sumbawa—a unique archipelago with a series of mountains along its equator. The journey to Flores Island, particularly to Ende, is not complete without visiting the Kelimutu Lake of the Tiga Warna (Three Colors) Lake. Kelimutu is the portmanteau of the word keli (mountain) and mutu (to boil).
This lake is famous for its three colors of red, blue, and white. The colors are always changing with time. Currently, two of the three lakes’ are colored brown, while the other one is green.
Morning is the best time to witness the beauty of the Kelimutu. Nearing noon and late in the afternoon, the lake is usually covered by thick fog, impeding the view.
Raja Ampat

(IST)
So phenomenal is the Raja Ampat that the Ministry of Tourism and Culture proclaimed it as one of Indonesia’s local tourism destinations. Raja Ampat has mesmerized divers from around the world with its beauty. Located in the center of the world's coral reefs triangle has stunning biodiversity.
According to the survey of The Nature Conservancy, 75 percent of the world's coral species can be found here. There are over a thousand species of fish, making Raja Ampat crowned as the 'fish capital of the world'. Not far from Raja Ampat, there is The Sop Island—home to many caves where locals hid from the Japanese army and other historical sites.
Wakatobi

(IST)
For diving enthusiasts, Wakatobi is the place to be. The beach is rich with marine biodiversity and coral reefs. Be enchanted by Wakatobi’s under-the-sea magic; one of the best in the world. Located in the World Coral Triangle, this place is paradise for divers.
Here, you will find an assortment of sea creatures that cannot be found on any other places on earth. Wakatobi also occupies one of the highest priority positions in Indonesia’s marine conservation list.
Lovina Beach, Bali

(IFT/MELLY RIANA SARI)
Lovina Beach is one of the numerous tourist areas on the northern part of Bali. The beach is still relatively untouched, allowing you to look at wild dolphins dancing in the open sea.
By hiring a local fishing boat, we can approach the dolphins. Various types of lodging are available, providing diving and snorkeling equipment and services. For beginners or first-timers, each cottage will provide instructors.
Pulau Kahyangan, Lombok

(IST)
North of Lombok Island, there is Pulau Kahyangan, or literally the Nirvana Island. Surrounded by oceanic gardens, the beach is virginal, inviting divers and surfers to explore its waves and underwater beauty. The island has many hotels and cottages to choose from. Travelers can take a motor boat ride to reach the island.
Don’t forget to stop by Sukarare, a village where people weave. Here, you can buy Lombok’s traditional woven cloths and watch how the weavers do their craft.

Kalatidha and Wounded Independence

2011-08-12T22:33:00.001-07:00

On August 17, 2011 Indonesia will have enjoyed 66 years of independence. But the reality of independence has neither been complete nor intact.
The essence of independence is the extent to which people have enjoyed prosperity and happiness. To be honest, the ideal had not been reached. This so-called independence is wounded. What is the meaning of independence if welfare is only enjoyed by a handful?
If we incise the wound of independence deeper, we will be able to see an anarchist society, rampant corruption, moral crises, everlasting anxiety, hopelessness, and unending desires.
Those are the signs of kalatidha, a term introduced by Kraton Surakarta poet R. Ng. Ranggawarsita. Kalatidha means a defective, damaged or chaotic era. Ranggawarsita used this word in literary work, Serat Kalatidha, which consists of 12 Sinom verses. The verses invite people to achieve true life that follows the order of truth by being constantly alert.
The kalathida itself is in the seventh stanza—a very famous one. This stanza more or less translates as such: "Experiencing crazy times / chaotic mind and dark hearts / to join the craze is too unbearable / not joining is to miss out / (we) end up starving / but by God / lucky are those who forget / more fortunate are those who remember and stay alert."
A crazy era is formed when society no longer has the ability to control their actions. Philosopher Driyarkara said that society no longer has full authority to do or not do. A person’s actions are controlled by another form of power. When this happens, men are independent no more. Driyarkara (2006:80) reminded us that independence is self-ability to decide what to do or not do.
Dow does a person has power over his or her own actions? Are there any easy way? One way is to understand the trait of nature. Many of us stray away from our nature, resulting in a loss of understanding of who we were meant to be and what we were meant to do. This leads to pressure and, finally, brings us to hurt our own freedom—wounding our independence.
A Chinese wisdom described the nature of nature as such: "Ducks have short legs, if we try to extend them, the ducks will be in pain. Those with long legs will hurt if we shorten them. So, cut not those which are meant to be long, and lengthens not those which are meant to be short,”
The Chuang Tzu's teaching declares that everything has different natures. The same with capabilities, every man has a different skill. However, we are all the same when it comes to happiness from utilizing our natural ability willfully, freely, and fully. The point is, the source of happiness and goodness the conduct of following our given nature, whereas to follow humanly elements is the source of pain and ugliness. What is natural in our inner soul and what is mortal is the outer aspect, the body.
It is now obvious that the doctrine constantly remind us that, as long as we keep pursuing things that are outer elements only, our independence will be scarred. Conversely, if one starts to deflect his attention towards his inner self, he will achieve true independence. Let us measure, where we are.
Once we measure, we will be shocked as we realize that most of us are more concerned with worldly aspects of life. We are mistaken to think that the measurement of happiness and prosperity is the amount of worldly things that we own. This misunderstanding leads humans to "shorten the long legs and extend the short legs".
The situation gave birth to Indonesia’s current depravity. Corruption is rampant, people are increasingly selfish and disregarding their surroundings, the nation's morals are sagging, leaders lead themselves, idols do not exemplify, and people turn to violence to seek solution. Depravity is formed when we are too busy piling up worldly things, allowing our soul to dry. We are trapped in this crazy time.

This is how we injure our own independence. We made it, we change it, and we end up messing up the value system in which something becomes an anti-value. The damage is caused from within, from the human self as the persona.
It is unfortunate to see and feel independence only in its political sense. We are free because we escaped colonialism and invasion, period. Independence should not stop with its political stance. It should expand and must liberate our independence.
We should liberate ourselves from inner invasions. We should not be not be "colonized" by physical lust. The nation's wounds must be healed. The remedy is to return to the spirit of throwing out invaders. Our predecessors dod not think in terms of individuals but as a “we,” an “us.” Indonesians are now prioritizing individual needs, ignoring unity of a nation in the process.
To obtain the essence of independence, there is no alternative but to return to the spirit of togetherness. The spirit of Independence Day is expected to be a driving force to immediately heal our wounds. It is wise to go back to Kalatidha, keeping ourselves alert and aware.

Quota for Subsidized Fuel in 2012 Remains at 40 Million kl

2011-07-27T17:18:00.003-07:00

The government plans to maintain the quota for subsidized fuel next year at 40.4 million kiloliters, the same quota in 2011. Komaidim, Executive Deputy Director of ReforMiner Institute, said that consumption of subsidized fuel increases in line with economic growth. Fuel consumption in Indonesia, according to Komaidi, reaches 50-60 million kiloliters a year and the figure will increase whenever the country’s economy grows.
To maintain the current fuel consumption rate, Komaidi says the government must be firm in implementing its fuel consumption efficiency policy. “The government has not introduced a reward and punishment system. Persuasive appeals have proven to be ineffective, even if the policy has been enacted and introduced in 2008,” Komaidi said.
Destry Damayanti, Chief Economist at Bank Mandiri, said that the government’s decision to set limits on subsidized volume of consumption indicates that it will continue the policy to implement an upper-limit for consumption of subsidized fuel in 2012. This, among others, will mean infrastructure development costs will not increase.
The world oil demand will likely remain in 2012 as the global economic sluggishness is predicted to prolong.
Hatta Radjasa, The Coordinating Minister for the Economy, said that Indonesia’s 2012 national oil lifting target has been set to 950-970 million barrels per day.

2011 Inflation Unaffected by Higher Food Prices

2011-07-27T17:18:00.001-07:00

Inflation in 2011 will remain at a manageable rate despite soaring food prices caused by inclement weather. The government’s strategy of conducting market inspections, improving logistics and assuring sufficient food supply to keep food price at an affordable rate are deemed effective. Ensuring food supply prevents traders from speculating on food prices.
The rupiah appreciation against the US dollar also helps minimize, even prevent, imported inflation.
One factor that could elevate inflation at a significant level is fuel prices. Based on data from Bank Indonesia, inflation will increase by 0.25 percent for each Rp 500 per liter price increase of subsidized fuel. For each Rp 1,000 per liter increase, inflation will rise by 1 percent. The Revised State Budget 2011 projects that inflation will reach 5.65 percent.
Fauzi Ichsan, Chief Economist of Standard Chartered Bank, estimates that inflation will reach 6.5-7 percent if the government raises the price of subsidized fuel, otherwise it will stand at 5-6 percent.

Indonesia Enters Top 20 List of FDI Receiving Countries

2011-07-27T17:17:00.002-07:00

For the first time, Indonesia makes its way into United Nations Conference on Trade and Development’s (UNCTAD) top 20 list of countries that received the largest foreign direct investments (FDI). In 2009, Indonesia was in 43^rd place, receiving FDIs totaling US$5 billion. In 2010, Indonesia received US$13 billion, placing in the top 20 list. Among other Asian countries, Indonesia is now in the top 5, trailing China, Hong Kong, Singapore and India, but topping Malaysia, Vietnam, South Korea, Thailand and Iran.
According to UNCTAD, the configuration of countries entering the top 20 list has altered. In 2009, only seven developing countries saw FDIs flowing into their country. In 2010, half of the countries mentioned in the list are developing nations. United States and China remain the on the top of the list.
Southeast Asia, East Asia and South Asia in 2010 topped regions with the total FDIs reaching 24 percent, or US$ 300 billion, with most into Southeast Asia and South Asia. Their strong economy and macroeconomic fundamentals, high domestic and foreign demand and high commodity prices were the main drivers behind the achievement.
The total FDIs recorded in the international market in 2010 reached US$1.24 trillion, up from US$ 1,185 trillion in 2009. Fifty-two percent of that total is flowing into developing countries.
UNCTAD estimates the total FDIs in the international market will continue to increase to about US$1.4 trillion-US$1.6 trillion in 2011, equaling the figure achieved in 2007, before increasing further to US$1.7 trillion in 2012. In 2013, the figure is estimated to reach a record high of US$ 1.9 trillion.

Mandiri Reviews Acquisition of Bank Mutiara

2011-07-27T17:17:00.000-07:00

Mandiri has yet to review Bank Mutiara’s stock price valuation to determine if the sales price of Rp 6.7 trillion is either too expensive or cheap. (IFT/STANLIE)
JAKARTA (IFT) - PT Bank Mandiri Tbk (BMRI), the largest bank in terms of assets, is reviewing to swap its recapitalization bonds (recap bonds) to purchase stocks of PT Bank Mutiara Tbk because the bank considers recap bonds not too profitable.
Zulkifli Zaini, President Director of Bank Mandiri, said that the bank currently has recap bonds of Rp 79 trillion and plans to swap it because they suffer a decrease in yield due to changes in the reference.
Previously, the coupon of recap bonds uses a three-month Certificate of Bank Indonesia (SBI) as the reference. However, the Central Bank halted the issuance of the above since 2010, and instead used Government Bonds with lower coupon as the reference.
With that, PT Bank Mandiri Tbk (BMRI) wanted to swap them with the stocks from Bank Mutiara.
Zulkifli said that the bank has yet to review Bank Mutiara’s stock price valuation to determine if the sales price of Rp 6.7 trillion is either too expensive or cheap.
Too Expensive
Gatot M Suwondo, President Director of BNI, said that the sales price is too expensive that the company is not interested in the acquisition. Bank Mutiara’s price-to-book value (PBV) is more than 1.0.
Yap Tjay Soen, Director Finance of BNI, said that BNI has no intention to acquire Bank Mutiara because it is not psychologically beneficial considering its poor image that it is difficult to grow.
It is not beneficial for BNI to acquire Bank Mutiara because of business focus similar to BNI such as housing loan. It will make both banks compete to grab the market.
Mustafa Abubakar, Minister of BUMN, said that there is a suggestion from Ministry of Finance that state-owned banks acquire Bank Mutiara.
Improved Performance
Maryono, President Director of Bank Mutiara, said the bank’s business is much different from the time when the bank was taken over by Indonesia Deposit Insurance Corporation (LPS) three years ago. Net income surged 247.7 percent to Rp 202.8 billion in the first half from Rp 58.33 billion year-on-year (YOY).
The assets also grew 47.3 percent to Rp 12.58 trillion from Rp 8.54 trillion. Third party fund increased by 42.8 percent to Rp 9.78 trillion from Rp 6.85 trillion in the first half of 2010. Loan portfolio rose 48.3 percent to Rp 8.32 trillion from Rp 5.61 trillion.
27% Loan Portfolio Growth
Bank Mandiri booked a 27 percent growth in consolidated loan portfolio to Rp 279 trillion in the first half of 2011 from Rp 218 trillion year-on-year (YOY). All segments posted the highest growth in small and medium enterprises sector.
Zulkifli Zaini, President Director of Bank Mandiri, said that the micro segment were 40 percent higher compared to 2010. Business banking and small business segments increased 30 percent. Housing loan rose 29-30 percent and credit cards went up 30 percent.
Zulkifli refused to comment on first half net income value. But, he did say that the growth is in line with the loan portfolio and fee based income that rose 25 percent to Rp 4.7 trillion.

Government Remapping for Rice Supply

2011-07-27T17:16:00.001-07:00

The government only focuses on stabilization of rice prices while rice quality is left to market mechanism. In fact, price fluctuations affect the price of premium quality types of rice. (ANTARA/REZA FITRIYANTO)
JAKARTA (IFT) – The government will remap domestic rice supply to determine the demand and supply by type of rice. This mapping is necessary to anticipate the surge in food prices, especially rice.
Krisnamurthi, Deputy Minister of Agriculture, said that in determining the supply and demand for rice, medium to premium quality must be determined. He said that despite a rice surplus, but if it does not meet the quality demanded and produced, it will need to be explored further. People who consume premium rice are not necessarily willing to substitute with low-quality rice despite rising prices.
Khudori, an agricultural analyst, said that mapping rice types is important to determine the amount of demand and production. So far, the government only focuses on stabilization of rice prices while rice quality is left to market mechanism. In fact, price fluctuations affect the price of premium quality types of rice.
Suswono, Minister of Agriculture, targets to increase diversification by reducing rice consumption by at least 1.5 percent per year. Food diversification will be done by increasing the consumption of tubers, meats, fruits, and vegetables.
Based on data from the Ministry of Agriculture, there are three provinces that recorded a surplus of rice namely East Java, Central Java and South Sulawesi. In 2011, there were 10 provinces that became the largest center for rice production. They are East Java, West Java, Central Java, South Sulawesi, North Sumatra, South Sumatra, Lampung, West Sumatra, Banten, and West Nusa Tenggara.
Increasing food production will be done by developing broad-scale farming areas (food estates) in Bulungan District, East Kalimantan with 1,700 hectares, Kubu Raya District, West Kalimantan, with 4,200 hectares, Sambas District, West Kalimantan, with 2,000 hectares; and District Sekadau, West Kalimantan with 2,000 hectares.

Pertamina EP Offers KSO in 5 Oil and Gas Fields

2011-07-27T17:15:00.002-07:00

PT Pertamina EP, a subsidiary of PT Pertamina (Persero), offers five oil and gas production and exploration fields by using a joint operation (KSO) scheme. (BLOOMBERG/SUSANA GONZALEZ) JAKARTA (IFT) - PT Pertamina EP, a subsidiary of PT Pertamina (Persero), offers five oil and gas production and exploration fields by using a joint operation (KSO) scheme. Syamsu Alam, President Director of Pertamina EP, said that the cooperation is one of the company's efforts to optimize work areas as well as increasing reserves and production.
The company offers two oil and gas exploration fields; the West Jambi 2 in South Sumatra, and the Bungalun-Kariorang in East Kalimantan. The company offers three production fields in Pabuaran, West Java and Tawun-Gegunung and Trembes-Ssendang in East Java.
The exploration KSO has a validity period of a maximum 20 years. Partners are obliged to submit the development plan of any discoveries of commercial production to Pertamina EP for approval. Partners are entitled to the production result and costs charged to the country (cost recovery) should the production is declared commercial by Pertamina EP.
"After three years of commitment without discoveries of economical reserves, Pertamina EP has the right to break the agreement," he said.
The production KSO agreement has a 15-year validity period. Partners are of their share of produced crude oil above the specified basic production. Partners are not entitled for crude oil if the production volume is the same as or lower than the basic production (non-shareable oil).
Agus Amperianto, Public Relations Manager of Pertamina EP, said that the fields offered through the KSO scheme are working areas Pertamina still works on. Agus said that allowing other parties to manage the fields is expected to increase reserves and production of oil and gas.
Pertamina EP currently has 16 Operations Cooperation in Sumatra, Java, Kalimantan, and Papua. As of the first semester of 2011, the company’s average oil production is around 124 thousand barrels per day (bpd), lower than its 134 thousand bpd target. The company produced 1,050 million cubic feet per day, equal to the same period of last year.

Steel Industry Grows 18% in Second Quarter

2011-07-27T17:15:00.000-07:00

Data from the Ministry of Industry stated that the basic metal, iron and steel industries grew by 10 percent annually in 2010. In 2011, the targeted growth is 13 percent, in 2012 with 15 percent. (BLOOMBERG/RICH PRESS) JAKARTA (IFT) - The national steel industry is projected to grow 18 percent in the second quarter of 2011, equaling the first quarter. MS Hidayat, Minister of Industry, said that the steel sector is projected to still be the main support of growth for the manufacturing industry in the second quarter. The growth is in line with factory expansion and optimization of industrial production of base metals, iron and national steel.
According to Hidayat, the steel industry’s expected growth is the highest compared to other sectors in the manufacturing industry.
Putu Suryawirawan, Director of Basic Metal Material Industry at the Ministry of Industry, said the growth is driven by the construction and automotive sectors.
Data from the Ministry of Industry stated that the basic metal, iron and steel industries grew by 10 percent annually in 2010. In 2011, the targeted growth is 13 percent, in 2012 with 15 percent, in 2013 with 13 percent and in 2014 with 83 percent. On average, until 2014, growth in this industry is targeted to reach 45 percent.
Hidayat said that in the second quarter of 2011, many industries are experiencing growth, with the manufacturing industry to grow six percent. In addition to the basic metals and steel industries, other industrial sectors that are projected to grow significantly are the food and beverage, including automotive sector.
Pangah Susanto, Director General of the Manufacturing-Base Industry at the Ministry of Industry, said that the basic metals sector, iron and steel grew by 18.22 percent in the first quarter of 2011, compared to the same period in 2010 with only 0.06 percent. Metal and steel sector recorded the highest growth in the manufacturing industry for the first quarter of this year, reaching 5.15 percent.
According to Panggah, the domestic steel supply is still deficient. Out of the total national requirements for iron and steel of around 10 million tons per year, only five million tons per year are met. This is why Indonesia is still importing steel from China, India and Ukraine.
Hadi Sutjipto, Corporate Secretary of PT Gunawan Dianjaya Steel Tbk (GDST), said that the growth of steel industry will continue to be high, in contrast with iron rods, whose competition is already tight. A lot of things indicate the growth of steel industry in the future.
PT Krakatau Steel Tbk (KRAS), for example, is currently building a blast furnace factory . In addition to the expansion of Krakatau Steel, Hadi said that Indonesia will continue to export steel and would also boost the revenue of local industry as well.
Arryanto Sagala, Head of Studies for Policy, Climate, and Quality of Industry at the Ministry of Industry, said that the national steel industry still lacks production capacity when compared to China’s 700 million tons of steel production per year which is way below par.
Supports Growth
According to the IFT Research Department, the 18 percent projected growth in the steel industry is highly achievable in the second quarter of 2011. This is due to the infrastructure, automotive and property sectors that are also developing.
For example, the sales realization in the automotive industry in June 2011 reached 70,157 units, increasing 14.9 percent from the 61,055 units achieved in May 2011. The growth encouraged an increase in demand for steel. Along with that, the infrastructure and property sectors are also projected to grow 10-15 percent in the first semester of 2011.
However, the national steel industry still needs government help to prevent or minimize the entry of imported products from China to Indonesia so that the local manufacturers could grow significantly.
In addition, the national steel industry is also experiencing inefficient distribution due to bad weather, and the rain that greatly damages the steel itself.

Two Developers Accelerate Residential Project Development

2011-07-27T17:14:00.000-07:00

PT Intiland Development Tbk is speeding up its Graha Famili residential projects in Surabaya, East Java. The company has remaining land bank of 35 hectares which is targeted to be completed by the end of next year. (IFT/DINUL MUBAROK) JAKARTA (IFT) - PT Intiland Development Tbk (DILD) is speeding up its Graha Famili residential projects in Surabaya, East Java. The company has remaining land bank of 35 hectares which is targeted to be completed by the end of next year. In the second semester of this year, Intiland is preparing investment of Rp 90 billion (US$ 10.62 million) for the development of two luxury residential clusters in Graha Famili.
Harto Laksono, Marketing Manager of Graha Famili, said that the two clusters currently being marketed are the Platinum and Astrella Place which will be launched in September 2011. This year, the company targets revenue of around Rp 150 billion from the Graha Famili project, of which Rp 90 billion was achieved in the first semester of 2011.
“There is still a remaining 35 hectare of land which will be developed in Graha Famili in the next two years. We are currently focusing on selling houses -- we are not selling land plots anymore,” he said.
The residential project sold at around Rp 3.5 billion-Rp 10 billion requires investment of around Rp 50 billion. The Astrella Place cluster is estimated to require funding of about Rp 40 billion. The investments will be sourced internally.
The marketing of the Astrella Place cluster will start after the Idul Fitri this year. Theere are a total of 50 residential housing units to be built, with selling price starting from Rp 2.5 billion. The current land price in the Graha Famili project is between Rp 6 million to Rp 12 million per square meters.
Jonggol Project
PT Bakrieland Development Tbk (ELTY) is also accelerating its Sentul Nirwana project development in Jonggol. The project will be marketed in the third quarter of this year. “Consumer’s enthusiasm towards the Sentul Nirwana is quite large, and so we have decided to develop the residential project first,” said Hiramsyah S Thaib, President Director of Bakrieland Development.
Jo Eddy Raspati, Marketing Director for Landed Residential Unit of Bakrieland Development, said that the first pahse of the two middle to upper class residential clusters in Sentul Nirwana has been marketed. Residential houses in the Atmosphere cluster is sold between Rp 600 million to Rp 1.5 million, while residential houses in the Breeze cluster has a selling price starting from Rp 250 million per unit.
The company owns land bank of 12 thousand hectares in that region. It needs investment of Rp 1 trillion to develop around six residential clusters and the initial phase of Jungle Land on an area of 127 hectares.

Masbaga Loan to Purchase Newmont Shares Without Problems

2011-07-27T17:13:00.001-07:00

Badan Koordinasi Penanaman Modal (BKPM), the Investment Coordinating Board, assesses that the loan from PT Newmont Ventures Ltd. to PT Indonesia Masbaga Investama is without problem. The loan will be used to acquire 2.2 percent shares of PT Newmont Nusa Tenggara. (IFT/STANLIE)

JAKARTA (IFT) - Badan Koordinasi Penanaman Modal (BKPM), the Investment Coordinating Board, assesses that the loan from PT Newmont Ventures Ltd. to PT Indonesia Masbaga Investama is without problem. The loan will be used to acquire 2.2 percent shares of PT Newmont Nusa Tenggara—previously owned by PT Pukuafu Indah. BPKM only requires that the loan will not result in voting rights.

Azhar Lubis, Deputy of Investment Implementation Control at BKPM, said that voting rights is essential in divesting shares of mining companies, as stipulated in Contract of Work (COW). "As long as the loan does not cause voting rights to go to foreign parties, it is considered proper,” Azhar said Tuesday.

Gita Wirjawan, Head of BKPM, previously said that BKPM will facilitate a meeting between Pukuafu, Masbaga Investama, and PT Nusa Tenggara Nemwont related to the purchase of Pukuafu’s 2.2 percent stake in Masbaga by Newmont Nusa Tenggara in June 2010. The shares are worth US$ 73.33 million. Masbaga secured loans from Newmont Ventures Ltd., subsidiary of Newmont Mining Corp., to purchase the shares.

Lubis said that BKPM acknowledges that Indonesia owns 100 percent of Masgaba’s deed. Thus, the share transfer is considered in compliance with divestment principles as it was transferred from one Indonesian company to another.

Blake Rhodes, Vice President of Newmont Ventures, said that Newmont Mining Corp. does not own Masbaga’s 2.2 percent stake in Newmont Nusa Tenggara. Masbaga has and may use its voting rights, unless there are defaults.

Nusa Tenggara Partnership BV is still the major shareholder of Newmont Nusa Tenggara with 51 percent. The remainder is owned by PT Multi Daerah Bersaing (24 percent), Pukuafu (17.8 percent), Indonesia Masgaba (2.2 percent), and the Pusat Investasi Pemerintah—the Government Investment Center (7 percent).

Pusat Investasi, however, has yet to pay the 7 percent divestment shares in the 2010 period worth US$ 246.8 million because Pusat Investasi has not received recommendations from the Ministry of Energy and Mineral Resources.

BII Targets Rp 400 T Online Transaction Volume

2011-07-27T17:12:00.001-07:00

ENGLISH

INDONESIAN

07:11 / Thursday / 28-July-2011

Banking

Wednesday, 27 07 2011

BII Targets Rp 400 T Online Transaction Volume

BY MYRNA AGATA RIYANTO

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BII’s electronic transactions can increase its low-cost funds or current and savings accounts (CASA) to 42-45 percent from 40 percent. (IFT/DINUL MUBAROK) JAKARTA (IFT) – PT Bank Internasional Indonesia Tbk (BNII) targets its online banking transaction volume to reach Rp 400 trillion by year-end by launching BII Corporate Online Banking (BII CoolBanking), according to bank officials. The bank cooperates with 15 companies for the service with a transaction volume of around Rp 2 trillion.
Rahardja Alimhamzah, Temporary Director of Bank Internasional Indonesia, said that PT Prudential Life Insurance, PT Metrodata Electronics Tbk, PT Summit Oto Finance, Hotel Nikko Jakarta, PT Indorama Polyester and BII Finance are working with the bank on this project. They will use BII CoolBanking for transactions for their employee accounts, fund transfers, tax payments and for reporting liquidity management, massive payments, foreign exchange information and other features.
Rahardja said that BII targets its total corporate customers to reach around 200. BII CoolBanking is a web-based online banking service for institutional customers.
Stephen Liestyo, Director of Consumer Banking of BII, said that BII will increase its transaction service through electronic banking, particularly mobile banking and internet banking. It will also introduce mini automatic teller machines (ATM) and cash deposit machines (CDM).
Electronic transactions can increase its low-cost funds or current and savings accounts (CASA) to 42-45 percent from 40 percent. The company will also reduce high-cost funds (deposits) to 55-58 percent by year-end from 60 percent.
For the development of electronic transactions, BII allocated US$ 100 million for three years (2010 to 2012). “At the end of 2010, we have used around US$ 33 million,” said Stephen.
Lowongan Kerja Terbaru di www.detikjobs.org/index.php

Government Fails to Sell Sukuk

2011-07-12T18:05:00.002-07:00

The Indonesian government failed to sell four series of Shariah-compliant bonds in an auction today, its first issuance since April 26. Investors demanded higher yields than the government was willing to offer. The sale attracted Rp 1.21 trillion (US$ 142 million) of bids, with an indicative target of Rp 1 trillion. Press release from the Debt Management Directorate General of the Finance Ministry stated that the bonds series and terms are IFR005 (six years), IFR0007 (14 years), IFR0006 (19 years), and IFR0010 (25 years).

Revenue from Privatization of SOEs Higher

2011-07-12T18:05:00.000-07:00

For the Revised State Budget 2011, the Ministry of State-Owned Enterprises has revised its projected revenue from privatization of state-owned enterprises (SOEs) from Rp 340 billion to Rp 425 billion. Mustafa Abubakar, the Minister of State-Owned Enterprises, said that the said revenue target will be met by increasing the number of IPOs from SOEs, this year and the next. The financial memorandum and estimated financial budget for fiscal year 2011, states that the revenue will come from PT Bank Mandiri Tbk, which plans to conduct a Rp 389.5 billion rights issue; PT Basuki Rahmat, which plans to divest Rp 2.6 billion shares; and PT Atmindo, which also plans to divest shares worth Rp 9 billion in total, among others.
The companies that will soon go public are PT Semen Batu Raja, Perusahaan Umum Pegadaian and PT Perkebunan Nusantara.
Mustafa also revealed that privatizations in the future will not only be conducted through IPOs, but also through restructuring programs and divestments.

2014 Debt Ratio Target Set at 24%

2011-07-12T18:04:00.001-07:00

Indonesia has successfully lowered its first semester debt ratio to 25.5 percent, from 26 percent in the last semester of 2010, while the 2014 debt ratio target has been set to 24 percent of Gross Domestic Product (GDP). Rahmat Waluyanto, Director General of Debt Management, said the government will only seek more loans to balance the budget deficit. The Law Number 17 Year 2003 on State Finance stipulates that the allowable total debt is 60 percent of GDP and the maximum State Budget deficit at 3 percent. The 2014 Medium Term Development Plan targets the state debt ratio to stand at 24 percent of the 2014 GDP.
Rahmat said that the decline can be attributed to the appreciating rupiah, the increasing GDP and the highly efficient debt management, which is evident from the increasing GDP. The 24 percent debt ratio will be met if the government consistently complies with the stipulations of Law Number 17 Year 2003.
Lana said that good debt management is indicated by the payment of 20-30 percent of the total annual debt. However, the payment, including debt interests and principal debts, which exceeded 60 percent, indicate that the government failed to benefit from the debt. This shows bad debt management.
Based on data from the Directorate General of Debt Management of the Ministry of Finance, from January to May, the government’s total debt reached US$ 68.97 billion, comprised of US$ 42.86 billion bilateral debt, US$ 3.07 multilateral debt and US$ 0.06 billion suppliers' debts.
The positive annual economic growth also contributed to the lower debt ratio. The government targets an economic growth of 6.5 percent for the second quarter.
Latif Adam, an economic expert at the Indonesian Institute of Sciences, however, said that economic growth only has a slight influence on the debt ratio, so the lower debt ratio was actually more of a result of external factors, especially the appreciating rupiah against the US dollar.
Latif said that the ideal debt ratio, which indicates that the country’s foreign debt is still at a manageable rate, is 30 percent, so the current debt ratio will help Indonesia earn its Investment Grade rating faster.

State-Owned Enterprises Expand Palm Plantations

2011-07-12T18:03:00.002-07:00

Land expansion should acquire permission from the Ministry of State-Owned Enterprises. – PT Perkebunan Nusantara III, PT Perkebunan Nusantara V and PT Perkebunan Nusantara VII, state-owned enterprises (BUMN) in the agricultural sector, will expand their palm plantation areas. The expansion will be done to increase palm plantations owned by the state, which is currently still low, said the management of BUMN.
Data from the Agricultural Ministry show that the palm plantation area owned by state-owned enterprises last year reached 676,000 hectares of the total palm plantation of 7.9 million hectares. Meanwhile, palm plantations owned by the public has reached 3.8 million hectares, while 3.5 million hectares are privately-owned.
Suharjoko, Production Director of Perkebunan Nusantara V, said that the company plans to expand its palm plantation area to 139,579 hectares from 132,505 hectares last year. It searches for plantation areas in West Kalimantan, Riau and Lampung.
Perkebunan Nusantara V allocated Rp 44 million per hectare for the plantation expansion. The funds will be taken from internal cash and bank loans. The company currently has 85,000 hectares of plantation area.
Fauzi Yusuf, Director of Perkebunan Nusantara V, said that the company prepared a capital expenditure of Rp 984.28 billion for developing palm and rubber plantations. The company targets palm oil production this year to increase to 500,000 tons from 450,000 tons. The production target of palm this year is 2.56 million tons.
Meanwhile, Akmaluddin Hasibuan, Commissioner of Perkebunan Nusantara VII, said that the company plans to expand its 5,000 hectare palm plantation. Its new plantation is in Bengkulu.
The investment needed for expanding the plantation area is Rp 40 million per hectare, so the total fund needed is Rp 200 billion. Akmaluddin refused to mention the source of the expansion funds.
Currently, of the company's 44,000 hectare plantation area, 25,000 hectares are productive. Perkebunan Nusantara VII owns palm plantations in the provinces of South Sumatera, Lampung and Bengkulu.
Achmad Mangga Barani, Commissioner of Perkebunan Nusantara III, added that the company will expand its plantation by 2,500 hectares located in Sumatera. The expansion will require an investment of Rp 56 million per hectare. He also refused to disclose the total investment and the source.
Perkebunan Nusantara III targets palm oil production this year to increase by 30,000 to 650,000 tons. “The production increase is not too high because we are currently rejuvenating our old palm plant,” he said.
Permit and Capital Constraints
Akmaluddin said that the company's expansion plan is hampered by the required zoning permit from the government. This pushed the company to look for new plantation areas outside Sumatera.
Suharjoko said that the company is experiencing difficulties finding suitable land due to zoning issues and land status. He said that companies usually find suitable land but it is often found in forest areas. “Almost all state-owned plantations are having problems finding additional land for their plantations,” he said.
Gamal Nasir, General Director of Plantation of the Agriculture Ministry, said that another factor is difficulty in finding capital. Besides this, land expansion should acquire permission from the Ministry of State-Owned Enterprises. “So, every extension of land done per year cannot be done without the consent of the Minister of State-Owned Enterprises,” he said.

600 Companies Relocate from Japan to Indonesia

2011-07-12T18:03:00.000-07:00

Japan Small and Medium Enterprises Association estimated that 600 small and mid-scale businesses have relocated their factories to Indonesia. Most of these companies are in the automotive sector. (IFT/MELLY RIANA SARI)

- Japan Small and Medium Enterprises Association estimated that 600 small and mid-scale businesses have relocated their factories to Indonesia, 500 of which have been registered. Most of these companies are in the automotive sector, followed by the electronics and the household appliance sectors. Yasunobu Shiraishi, Chairman of Japan Small and Medium Enterprises Association, said that the average investment value of US$ 10 million per investor.

Japan’s high investment and factory construction cost contributed to the relocation, which started in 1999 and reached its peak in 2001. Because the cost of doing business is still relatively low in Indonesia – one of which is labor cost – the country is seen to offer a huge market, and became the choice location.

"Five hundred companies have already relocated and the number will increase in the future," Shiraishi said on Monday.

The Greater Jakarta (Jabodetabek) area is where 90 percent of investments will be located, and the remaining 10 percent are spread outside of Jakarta. Currently, an estimated two percent of 30 thousand small and medium business in Japan have relocated to Indonesia.

"These companies relocate to Indonesia in order to supply the needs of large automotive component companies, such as Toyota and Daihatsu, which are also increasing their production capacity. Another major consumer of Japan’s component companies is Suzuki, which also intends to invest," he said.

Satoru Sam Ueda, General Manager in Indonesia of Shiroki Corporation, said that the March 11 earthquake and tsunami in Japan was not the reason for this relocation, since the relocation plan has started since 1999.

"They relocate because Indonesia’s potential is big, given the dense population and income per capita is increasing. People with motorcycles will be thinking of buying a car. The market potential is still enormous," Ueda said.

Ueda also explained that there will be a need for supporting industries, for example, the component industries, as the automotive industry grows. To facilitate the relocation, the Small and Medium Sized Enterprises Japan Association have set up representative office in Indonesia to serve and to mediate their investment plans.

Local Industry

The government has asked automotive producers to continue working together with local players in order to maintain the competitiveness among national automotive industry supporters and to sustain local industries. "This cooperation is stated in the Economic Partnership Agreement,” said MS Hidayat, the Minister of Industry.

Hidayat said the standards set for the automotive component industry is strict because it is classified as a high-tech sector. Japanese companies may find it easy to meet these standards but there must be participation from automotive manufacturers to increase local companies’ capacity for locals to catch up.

Relocating companies are urged by the government to do partnerships with local entrepreneurs, so they can collaborate and develop technology transfer.

"The government encourages them to utilize local component of industrial production in a greater quantity than those of Japan companies. It will be regulated by the Ministry of Industry," he said.

Motor Vehicle Fuel Tax Set at 5%

2011-07-12T18:02:00.001-07:00

Government has set the Motor Vehicle Fuel Tax at five percent of the purchase price, which will be effective until September 15, 2012. (IFT/MS FAHMI) - President Susilo Bambang Yudhoyono has set the Motor Vehicle Fuel Tax at five percent of the purchase price, which will be effective until September 15, 2012.
Marwanto Hardjowiryono, Director General of Fiscal Balance at the Ministry of Finance, said that the statute will be stipulated in the President Regulation Number 36 Year 2011 on Revised Fuel Tax. The statute has actually been effective since July 4 and applies retroactively since September 10, 2010.
“The price of fuel will vary from one region to another if not controlled,” Marwanto said.
The new regulation will oblige regions that charges Motor Vehicle Fuel Tax over five percent to make readjustments. East Java, Central Kalimantan and Maluku are regions that charges up to 10 percent. Policies on subsidized fuel imposed after September 15, 2012 will be adjusted to the most recent oil and gas prices, and the social economic conditions.
Marwanto further revealed that the central government does not prohibit provincial administrators to determine tax rates for non-subsidized fuel through regional regulations. The law stipulates that regional administrators can set Motor Vehicle Fuel Tax up to 10 percent and that Motor Vehicle Tax are locally generated revenues.
The price of the subsidized Premium fuel currently stands at Rp 4,500 per liter while the price of non-subsidized Pertamax and Pertamax fuel varies among regions.

Bhakti Energi Meets 44% of Production Target

2011-07-12T18:01:00.001-07:00

PT Bhakti Persada Energy, a coal mining company, produced 663 thousand tons of coal in the first half of 2011. The amount is equal to 44.2 percent of this year’s production target of 1.5 million tons. (BLOOMBERG/NELSON CHING)

- PT Bhakti Persada Energy, a coal mining company, produced 663 thousand tons of coal in the first half of 2011. The amount is equal to 44.2 percent of this year’s production target of 1.5 million tons, contributed by the mines of its subsidiary, PT Pesona Khatulistiwa Nusantara, in East Kalimantan.

Jeffrey Mulyono, CEO of Bhakti Energy, said that the relatively low production is the result of high rainfall. With the weather currently improving, production is expected to increase in the third and fourth quarter. "To increase production, we will improve our production equipment," he said Monday.

Approximately 70 percent Bhakti Energi’s production is included in its long-term sales contracts, while the rest will be sold directly in the spot market. The average selling price for contracted sales is approximately US$ 31 per ton, and the spot price is US$ 38 per ton. "Our coal sales are entirely exported, to China and India, because our coals have low-calorie of about 3,400 kilocalories," he said.

According to the IFT Research Department, Bhakti Energi’s first half's coal sales are projected to reach US$ 49.65 million. Contracted sales are estimated to be worth about US$ 32.55 million, while spot sales is projected at US$ 17.1 million.

PT Bukit Asam Tbk (PTBA), a state-owned mining coal company, estimates its first-half production to have reached 45 percent (7.9 million tons) of the 17.6 million tons year-end target. The first semester’s sales volume is also estimated at 45 percent (7.5 million tons) of the 16.7 million tons target.

Sukrisno, Director of Bukit Asam, said that first semester’s production is usually lower than the second semester.

This year, Bukit Asam has a domestic market obligation (DMO) quota of 7 million tons, but the company had acquired more (9.6 million tons) through its domestic sales contract. Most of the contracts meet the needs of PT PLN.

Achmad Sudarto, Company Secretary of Bukit Asam, said that domestic sales have reached 65 percent. The remaining 35 percent are exports to Japan, India, China and Malaysia. He did not mention the volume in detail. The current average selling price is 10-15 percent higher than last year's Rp 615 thousand per ton.

Export Ban

Bhakti Energy, previously engaged in mining consultancy, faces the challenge of poor quality coal from its concessions. This is related to Law No. 4/2009 on Mineral and Coal which prohibits exports of low-calorie coals. The law will take effect in 2014.

According to Jeffrey, there is also the problem of unavailability of coal upgrading technologies. On the one hand, this will force the export of its entire production due to the law, especially since there are no domestic buyers for low calorie coals. Thus, the company will continue to discuss the matter with the Indonesian Coal Mining Association and the government regarding law enforcement.

Related to its commitment with strategic partners who will allocate US$ 500 million for the company’s capital expenditures over the next three years, Jeffrey was unwilling to comment further. As reported previously, Bhakti Energi canceled its plan to conduct an IPO, offering 20 percent its shares after the company obtains strategic partnership to develop its business.

Isuzu Invests Additional Rp 30 M–Rp 40 M for Production

2011-07-12T18:00:00.002-07:00

The GIGAFVZ 34 is expected to capture seven percent of the market by selling 600 units in 2011, with mining enterprises as its target market.
- PT Astra Isuzu Motors invests an additional Rp 30 billion - Rp 40 billion (US$ 3.51 million – US$ 4.68 million) to increase the production line of commercial vehicles in the medium truck segment, specifically for production in Pondok Ungu, Bekasi, West Java, according to Johannus Nangoi, President Director of Astra Isuzu.

"The additional investment is for the new F-series production line," he said in Jakarta on Monday.

The F-series medium trucks will be manufactured with a production capacity of 4,000 units of trucks per year. This number will gradually increase, reaching up to 7,000 units per year. These trucks will be produced in a factory located in Pondok Ungu, which also produced 35,000 units of light trucks, Isuzu N Series (Elf).

The F-Series new model will increase its production capacity to an estimated 200 units per month. Last year, the production was only at 80 units per month. With this increase, the F-Series production capacity has reached 2,400 units per year, and Elf production reaching 21,600 units per year. In 2011, the Elf series’ production also increased to 1,800 units per month when compared to the 1,100 units per month produced at the beginning of this year.

On Monday, Isuzu Astra officially launched FRR 90 and GIGAFVZ 34, two new models of the F-Series medium trucks. The GIGAFVZ 34 is expected to capture seven percent of the market by selling 600 units in 2011, with mining enterprises as its target market. Meanwhile, the FRR 90 trucks are meant to meet the needs of distribution or logistic companies.

By 2015, the GIGAFVZ 34 market share should grow by 22 percent, or to 6,700 units in 2015, compared from the previous year’s five thousand units.

Eddy Yusuf Oekasah, General Manager of Marketing at Isuzu Astra, said that so far, 200 units of GIGAFVZ 34 and 40 units of FRR 90 trucks have been booked. The vehicles will be delivered to the customers in October.

According to Eddy, the high demand of coal mining companies will increase the commercial vehicle sales this year. Data from the Central Bureau of Statistics coal production shows an increase from 50 million tons since 1996 to 178 million tons in 2008.

"Mining companies will demand more commercial vehicle as the production of coal increase," he said.

The stability of national economies, bank credit growth, increasing development of eastern Indonesia’s construction industry, infrastructure and trans Java toll road development, contributed to the growth of commercial vehicle sales. With this progress in consideration, Isuzu plans to launch three models of the F-Series starting from October to December 2011.

International Nickel Seeks Strategic Investors

2011-07-12T18:00:00.000-07:00

PT International Nickel Indonesia Tbk, soon to change its name to PT Vale Indonesia Tbk, is collaborating with the Southeast Sulawesi Provincial Government to seek strategic investors to manage the company's Contract of Work (COW) area. (BLOOMBERG/NEWS)

- PT International Nickel Indonesia Tbk (INCO), soon to change its name to PT Vale Indonesia Tbk, is collaborating with the Southeast Sulawesi Provincial Government to seek strategic investors to manage the company's Contract of Work (COW) area. Tony Wenas, President Director of International Nickel, said that the company is committed to implement the agreement with the Government of Southeast Sulawesi.

"We will invite strategic investors, as the details of implementation are still under discussion," Tony told IFT via SMS on Monday.

Southeast Sulawesi Governor, Nur Alam, accused International Nickel of stalling from complying with the memorandum of understanding that was signed on April 14, 2011. The memorandum states that the company must to hand-over an area of 35,486 hectare to Southeast Sulawesi Provincial Government. The land is to be transferred to the new investors from China, to develop a ferronickel plant. Moreover, the unnamed Chinese investors expressed their commitment by investing US$ 100 million in the project.

International Nickel, according to Nur Alam, has had control over a 63,506 hectares land concession in Southeast Sulawesi for over 40 years ago. However, according to the Governor, the company only pays $ 1 per hectare of land lease. "We have reported violations of International Nickel’s COW to the Ministry of Energy and Natural Resources," he said.

Iskandar Siregar, Senior Coordinator for Provincial and Media Relations at International Nickel, said that in conducting its activities, the company have always complied with the statutory provisions. The company is also ready to open a dialogue to draw-up the best solution for all parties.

International Nickel has COW areas in three provinces, namely South Sulawesi (lake area), Central Sulawesi (Bahudopi, Lingke, Bulubalang, Kolonodale), and Southeast Sulawesi (Latao, Suasua, Paopao, Pomalaa, Torobulu, Malapulu, Matarape, Lasolo). Overall size of the region is over 218 million hectares.

The Company signed a COW on July 27, 1969, for a 30-year period since commercial production began in April 1, 1978, until March 31, 2008. In January 15, 1996, International Nickel extended the COW for another 30 years until 2025.

Last year, International Nickel released four blocks to the Southeast Sulawesi Provincial Government, with a total area of approximately 28,000 hectares, 12.8 percent of the current COW’s total area.

In the first quarter of 2011, International Nickel Indonesia posted US$ 322.4 million in revenues, a 26.15 percent year-on-year (YOY) increase from last year’s US$ 255.57 million. The company’s net profit grew 46.7 percent to US$ 111.86 million from US$ 76.25 million, triggered by increased selling prices that offset the production decline

BI Leaves Reference Rate Unchanged at 6.75%

2011-07-12T17:59:00.001-07:00

Indonesia’s central bank kept its benchmark interest rate unchanged at 6.75 percent for a fifth consecutive month as easing inflation gives policy makers room to assess the risk of a slowdown in
global growth.
The decision was predicted by all 11 economists from banking and securities companies surveyed by the Indonesia Finance Today. Policy makers increased the key rate in February, the only move this year.
Bloomberg data on eleven regional currencies showed that rupiah exchange rates already appreciated by more than five percent this year, the second highest after South Korea won. "Rupiah appreciation stifles inflation," said Chandra Pasaribu, Head of Equity Research for PT Danareksa Sekuritas in Jakarta.
Lana Soelistianingsih, an economic expert at PT Samuel Sekuritas Indonesia, said that the spread between the BI Rate and Fed Fund Rate is still relatively high at 625 basis points, and the still fluctuating global economy.
Eric Alexander Sugandhi, an economic expert at the Standard Chartered Bank, agrees that the rate will be able to increase the country’s credit growth.

Telkomsel Might Move 3G Frequency Channel

2011-07-07T01:18:00.001-07:00

PT Telkomsel aims to have 400 thousand subscribers for its newest product, the Tap-Izy, an electronic money service in the first year. Tap-Izy is a mobile payment service. (IFT/STANLIE)
JAKARTA (IFT) - PT Telekomunikasi Selular (Telkomsel), a subsidiary of PT Telekomunikasi Indonesia Tbk (TLKM), considers moving one of its 3G frequency channels as prompted by the Ministry of Communications and Informatics. The move is related to the government's plan to rearrange 3G frequencies related to requests from PT Hutchison CP Telecommunications (Tri operator) and PT Telecom Indonesia Axis (Axis operator) for 3G frequencies allocation.
Sarwoto Atmosutarno, President Director of Telkomsel, said that the company is still assessing the request. "Telkomsel can move one 3G frequency channel to facilitate and optimize 3G frequencies allocation in the Indonesian telecommunications industry," Sarwoto said, after the launch of the company's new products, Tap-Izy, on Wednesday.
According to Sarwoto, moving one 3G frequencies channel will cost Telkomsel, as the company will have to pay for the adjustments in program systems, hardware and software. "The cost is estimated at more than Rp 10 billion (US$ 1.17 million)," he said.
Sarwoto also stressed that Telkosmel wish to request an additional 3G frequencies allocation from the government, known as a third carrier. Additional frequencies are needed to support the increasing usage of data services. The company has prepared a budget for the third block, in accordance with government regulations. Telkomsel already has two blocks of 3G frequencies with 10 MHz capacity.
Tifatul Sembiring, Minister of Communications and Information Technology, said that the government is reviewing BRTI’s (Indonesian Telecommunications Regulatory Body) recommendations on the 3G frequency arrangement. One of BRTI’s recommendations is for Telkomsel to move one of its channels, so that Tri and Axis can have their share of the second terrier 3G blocks. The goal is to optimize the capacity of the allocated frequencies of Tri and Axis.
The government allocated 60 MHz in 2.1 GHz bandwidth for 3G frequencies. A total of 40 MHz are already used by five operators. Three operators, PT Telkomsel, PT Indosat Tbk (ISAT) and PT XL Axiata Tbk (EXCL) are using 10 MHz each. The remaining 10 MHz are used by Tri and Axis, with 5 MHz each, leaving 20 MHz unused, 10 MHz of which are already requested by Tri and Axis, so both operators can have 10 MHz each. The remaining 10 MHz (two blocks) will be contested by Telkomsel and XL Axiata, as both operators have requested third carrier allocations.
Based on the regulation, the government will allocate 3G frequencies to operators for 10 years. Mobile operators are obliged to pay the annual rights to use the frequencies (BHP) amounting to Rp 160 billion.
Tap-Izy
PT Telkomsel aims to have 400 thousand subscribers for its newest product, the Tap-Izy, an electronic money service in the first year. Tap-Izy is a mobile payment service.
Bambang Supriogo, Vice-President of T-Cash Management at Telkomsel, said that Izy Tap is T-Cash innovation, utilizing the SMS (short messaging services) to make electronic payments.
Telkomsel is working with a number of merchants that utilizes Tap-Izy, such as Indomaret, Starmart, Solaria Restaurant and Disc Tarra. In the near future, convenient stores like 7-Eleven and Circle-K will also utilize Tap-Izy.
Telkomsel is one the four telecommunications operators licensed by Bank Indonesia to implement the mobile payment. With T-Cash service, the company has 43 percent shares in the mobile payment market, with 5.3 million recorded users as of June.
"This year, we are targeting to have 8 million T-Cash users from last year’s 4 million," Bambang said.

Electricity Subsidy Increases

2011-07-07T01:17:00.000-07:00

The government will increase electricity subsidy this year from Rp 40.7 trillion (US$ 4.74 billion) to Rp 66.4 trillion.

- The government will increase electricity subsidy this year from Rp 40.7 trillion (US$ 4.74 billion) to Rp 66.4 trillion. The figure is 62.9 percent of the ceiling price stated in the State Budget. Bambang Brodjonegoro, Acting Head at the Fiscal Policy Office, said that the higher subsidy was mainly attributable to three factors: lack of gas supply, the Commercial Operational Date delays of the 10 thousand MW project stage one, and the rising international fuel prices of both coal and oil.

According to Bambang, the raise is also because the government is making changes in the parameters of electric subsidy. This results to a revision in the fuel quota for PLN’s power plants. The prior 2.8 million kl diesel quota is revised to 4.7 million liters, and the 1.6 million fuel oil quota is revised to 2.6 million kl. The 36.8 million tons quota of coal becomes 37.2 million tons, and gas quota is lowered from 0.4 million british thermal unit (mmbtu) to 3 mmbtu and geothermal quota remains at 8 terawatt-hour.

The change is also because of the following: higher national oil price (ICP) from US$ 80 per barrel to US$ 95 per barrel, exchange rate from Rp 9,250 to Rp 8,800 per US dollar, sales growth from 7.4 percent to 8.1 percent, energy sales from 153.9 terawatt-hour to 157 terawatt-hour, loses from 8.6 percent to 9.4 percent, and production cost of electricity increased from Rp 920 per kilowatt-hour (kWh) to Rp 1,065 per kWh.

Nurpamudji, Director of Primary Energy at PLN, said that electric subsidy is being raised mainly because the 69 tera british thermal unit (tbtu) gas allocation for the company’s power plants was not realistic. Swapping gas from Jambi Merang field by 65 billion btu per day is included in the fulfillment assumption of 320 tbtu.

Robust Invests US$ 15 M in Romang Mines

2011-07-07T01:16:00.001-07:00

Robust Resources Limited, a mining company listed in the Australia Stock Exchange, budgets a minimum of US$ 15 million this year, to explore gold and copper mines in Romang Island, Southwest Maluku. (BLOOMBERG/NEWS)

JAKARTA (IFT) - Robust Resources Limited, a mining company listed in the Australia Stock Exchange, budgets a minimum of US$ 15 million this year, to explore gold and copper mines in Romang Island, Southwest Maluku. Gary Lewis, Managing Director of Robust Resources, said the company will conduct aggressive exploration activities in Romang Island in the next 12 months. ''We were lucky enough to have more than enough cash to explore South and North Romang,” Lewis said in the company’s website, Wednesday.

Lewis promised that the company will deliver the prime figures to the Joint Ore Reserves Committee (JORC), by the start of the second quarter of the current financial year. In the past 12 months, the company has been expanding the exploration in North Romang, including surveying geological mapping, soil geochemical analysis, aero-magnetic and geophysical processes. The surveys found significant Induced Polarization (IP) anomaly, implying a large mineralized amount of porphyry copper.

For drilling in Lakuwahi in Romang Island, Lewis said that the company will focus on reaching the prime numbers of JORC resources. With six active rigs in Lakuwahi, there are currently at least 140 holes with a total drilling depth of 18 thousand meters.

Robust manages the mines on Romang Island, located in the border of East Nusa Tenggara and Maluku, through its subsidiary, PT Gemala Borneo Utama, as business license holder. The exploration project with a 25 thousand hectare concession area, has been identified to have gold, zinc, silver and copper reserves.

This region lies in the Banda magnetic basin, not far from a number of world-class gold and copper deposits sources, that include the Batu Hijau field in West Nusa Tenggara. Batu Hijau is managed by PT Newmont Nusa Tenggara. The field has 920 million metric tons of reserves, containing 0.55 percent copper and 0.42 grams of gold per ton of grade mineral. Before being managed by Gemala Borneo, PT Muswell Brook Mining—in collaboration with PT Ashton Mining—conducted exploration activities in Romang Island from 1988 to 1992.

Appointment of Former Directorate General

Kalimantan Gold Corporation Limited, a company with a gold mine in Kalimantan, appointed Bambang Setiawan, former Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources, as commissioner of its subsidiary, PT Kalimantan Surya Kencana. This subsidiary is holder of the company's contract of work (COW). Faldi Ismail, Deputy Chair and CEO of Kalimantan Gold, stated that Bambang is considered eligible and capable in strengthening Kalimantan Surya Kencana’s performance, particularly in establishing relationships between company directors and the government.

“Bambang Setiawan has good experience and knowledge in both governmental matters and Indonesia’s mining industry,” he said.

Bambang earned his doctorate in geology and mining exploration from The Ecole Nationale Superieure Des Mines de Paris, in 1993. Prior to joining Kalimantan Surya Kencana, Bambang served in the Ministry of Energy for 30 years.

Pertamina Gets Majority Participating Interest in Mahakam Block

2011-07-07T01:15:00.001-07:00

The government assures that PT Pertamina, a state-run company in the oil and gas business, will be the majority participating interest holder in the Mahakam Block, East Kalimantan, after Total EP Indonesie’s contract ends in 2017. (IFT/MELLY RIANA SARI)
JAKARTA (IFT) – The government assures that PT Pertamina, a state-run company in the oil and gas business, will be the majority participating interest holder in the Mahakam Block, East Kalimantan, after Total EP Indonesie’s contract ends in 2017.
“The acquisition of the 51 percent participating interest at the Mahakam Block is in line with the business strategy of Pertamina,” said Muhammad Husen, Upstream Director of Pertamina.
Total EP Indonesie from France, and Inpex Corporation, Japan, are the operators of the Mahakam Block, each controlling 50 percent participating interest. Total produces 3,200 million metric standard cubic feet per day (mmscfd). The Mahakam Block still contains 11.7 percent or 12.7 trillion cubic feet of total proven reserves.
Request for 51 Percent
Muhammad confirmed that Pertamina submitted a request to the Ministry of Energy and Mineral Resources on Tuesday to obtain 51 percent participating interest in the Mahakam Block in 2017. Pertamina will obtain the shares in phases.
“We hope that prior to 2017, Pertamina will cooperate with Total through a business mechanism to operate the Mahakam Block,” said Evita Herawati Legowo, Director General of Oil and Gas of the Ministry of Energy and Mineral Resources.
M Harun, Vice President of Corporate Communications of Pertamina, said that the acquisition process is being conducted in phases, starting from 15 percent in 2011. Pertamina targets to acquire 45 percent of the Participating Interest in the country's largest gas producing block before 2017.

CIMB Niaga Targets 500 Thousand Internet Banking Users

2011-07-07T01:14:00.002-07:00

CIMB Niaga targets a 57.07 percent growth in internet banking customers to 500 thousand by year-end from 318,327 users in the first semester of 2011 to increase its efficiency. (IFT/MS FAHMI)
JAKARTA (IFT) – PT Bank CIMB Niaga Tbk (BNGA), Indonesia's fifth largest bank in terms of assets, targets a 57.07 percent growth in internet banking customers to 500 thousand by year-end from 318,327 users in the first semester of 2011 to increase its efficiency.
Ferdy Sutrisno, Director of Retail and Islamic Banking of Bank CIMB Niaga, said that its internet banking, ‘CIMB Clicks’, had 205,457 users in 2010. In the first semester of 2011, it grew 54.95 percent to 318,327 users as customers began to see its practicality.
According to Ferdy, the company has a high target to enable them to reduce operating costs. In comparison, the operating cost of an internet banking transaction is only 5 percent of one transaction in a branch office.
The bank also added train ticket purchase as a new electronic banking transaction, in cooperation with PT Kereta Api Indonesia. CIMB Clicks can also be used to buy tickets from Air Asia, Garuda Indonesia, Lion Air and Merpati. The bank will also add online payments in cooperation with other institutions.
Budiman Poedjirahardjo, EVP Card Merchant and e-Channel Business Head of Retail Banking of CIMB Niaga, said that the volume of the bank’s internet banking transactions reach 4-5 million per month valued at Rp 300 billion per month. “The transactions have surged by 200 percent in one year. We hope they will grow twofold next year," he said.
Besides reducing operating costs, the additional features in its internet banking service is part of the bank’s efforts to provide customers comfort and security in their transactions.

78 Securities Companies Complete Customer Data Updates

2011-07-07T01:14:00.000-07:00

determined its position yet on those who have not complied with the deadline. JAKARTA (IFT) – The Director of the Indonesian Central Securities Depository (KSEI) said that 78 of the 119 securities companies listed in the Indonesia Stock Exchange (IDX) have already conducted customer data updating. In terms of custodian bank, KSEI noted that there are 18 out of 20 banks that have submitted the updated data. These came from local and foreign institutions. According to Sulistyo Budi, Director of KSEI, the deadline for securities companies and custodian banks to update customer data was June 30.

KSEI has not determined its position yet on those who have not complied with the deadline. The Indonesian Securities Companies Association has requested for an extension. According to the Association, there are administrative and technical issues which deter the updating process

Lily Widjaja, General Chair of the Association, said that one of the issues occur during the verification of customer data, from those whose accounts have been dormant for sometime. The concerned securities company has been trying to contact the customer, but has unfortunately failed. “For active customers, on the other hand, there has been a significant progress in terms of data updating,” she said.

According to her, the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK), following the meeting with the Association, has understood with the issues raised. It proposed the blocking of the account of customers who have not submitted the necessary data to brokers.

“Several brokers have conducted a temporarily account freeze for inactive customers. However, if at any time the customers want to transact again, they will just have to submit their updated data to the brokers to reopen the account," she said.

The customer data update is an implementation of the Bapepam-LK Regulation No. V.D.10 regarding the Know Your Customer Principle by the Financial Service Provider of Capital Market. Initially, the deadline for the updating was on December 2010, but was later extended to June 2011.

KSEI can serve as a mediator to manage those inactive customers’ account, by placing them in an escrow account, according to Ananta Wiyogo, Chief Director of KSEI. If however, the relevant account is still not active for certain amount of time, then it can be deleted. The regulation regarding the escrow account has not been finalized yet, so the implementation is still on hold.

Indonesia Competes to Obtain Rice from Thailand and Vietnam

2011-07-07T01:12:00.001-07:00

Indonesia is likely to enter a tight competition in obtaining imported rice from Thailand and Vietnam. Sutarto Alimoeso, Director of Perusahaan Umum Bulog, said that other countries such as Malaysia, Bangladesh, the Philippines, Middle East countries, and African countries are also seeking for rice from the two rice exporter countries. So far, Indonesia has received rice export commitment from Vietnam and Thailand for a ton of rice from each country. “The commitment excludes price,” Sutarto said to IFT.
As cited by Bloomberg from the Thoi Bao Tai Chinh Daily, the Vietnamese Food Association stated that Indonesia has conducted talks to import 400 thousand tons of rice. Bangladesh has signed a purchase contract for 100 thousand tons of 15 percent broken rice which will be shipped this July. This commitment has boosted rice prices in Vietnam to go up by 200 dongs to 5,850 dongs per kilogram (kg) compared to 5,650 dong per kg last week.
The United States Department of Agriculture (USDA) projects that Indonesia will import rice up to 1.75 tons this year. The Philippines’ rice import will still be around 860 thousand tons and Malaysia with 1.04 million tons. Bangladesh and Iraq have agreed to purchase 250 thousand tons of rice from Thailand.
Sutarto admitted that Indonesia will likely obtain rice from Thailand at a high price. This is due to the country’s new policy under Yingluck Shinawatra who wants to buy farmers’ rice with at a more expensive rate. Rice import countries should be aware of this since other rice export countriessuch as Vietnam may likely raise their rice price as well.
However, there is a possibility that rice price will not go up if supply from other countries such as India and Pakistan exceeds demand. The unpredictable condition causes global rice price to fluctuate.
Followed by Vietnam
IFT Research Department studies shows that Thailand’s Grade B broken rice export price is at US$ 537 per ton in July 6, up 3.5 percent from US$ 519 in the previous week. The price raise was caused by speculative traders’ actions for the victory of Pheu Thai Party that promised the rice-pledging scheme, a program whereas the government purchases rice from farmers with premium price.
Rice price in Vietnam has also started to go up following the higher price of rice in Thailand which caused shift of purchases from importer countries. The price of broken rice export in Vietnam grew five climbed five percent to US$ 483 per ton in June 24 from US$ 469 per ton in the previous week.
Data from the Central Statistics Bureau shows that the total rice import of Indonesia in 2010 reached 1.8 million tons, with 600 thousand tons rice import conducted from the end of October to December 2010. Bulog continued to import up to 1.2 million tons in January-May 2011.
Sutarto said that almost 60 percent of imported rice came from Vietnam and Thailand. Imports from Vietnam are larger than Thailand, considering three things which are the availability of rice product, price, and shipping time.
In the end of 2010, the government established a rice import policy, and Vietnam sent its rice in the end of October. “From the administration process, it is easier to import rice from Vietnam rather than Thailand. With Thailand, we conducted negotiations for up to almost two months,” Sutarto said.
The price factor is the main consideration of rice import by Bulog. The company will bring in broken rice of five percent and fifteen percent. According to Sutarto, Bulog is looking for the best price since it will affect government budget.
The government will prioritize the purchase of domestic rice if international rice price becomes higher. “However, we will consider the supply of rice from farmers. If it is too low, then we will purchase from rice importers,” he said.
Market Operation
Currently, the main task of Bulog is to control domestic rice price through market operation. Bulog targets to distribute 300 thousand tons of rice for market operation. The domestic absorption of domestic rice will also be continually propagated to maintain government’s supply of rice.
Husein Sawit, rice expert, said that the Thailand government’s policy of purchasing rice from farmers with high price will not affect sale price in the international market. The Thailand government must consider its competition with Vietnam and India to maintain its sale price from becoming too expensive.
The Thailand government is also likely to provide subsidy for exported rice price. “It will burden the Thailand government’s budget, but that step is popular with farmers there,” Husein said.
Khudori, agriculture expert, added that the rise price of rice will be affected by rising oil price and the actions of speculators who play global commodity prices, including rice. Rice price went up in 2008 during the financial crisis and global oil price also hiked. “The condition this year is different since global oil price has not yet risen sharply and the global economy is not volatile,” he explained.
He suggests that the government can avoid high rice price by conducting the right import opening and closing policy. Timeliness is required and there should be no panic in conducting rice import since it will affect towards the rice import by the Philippines which caused the competition to obtain rice in the international market to become tighter and causing rice price to go up.
Husein also asks that Indonesia does not follow the Philippines’ footsteps in purchasing rice in huge quantities from the international market. This policy causes the country to purchase rice with high price. “Purchasing of rice should be done in phases and in not too large amounts,” he said.

BISNIS INTERNET Geser Google, Baidu rangkul Microsoft kembangkan layanan internet di China

2011-07-05T04:07:00.001-07:00

BEIJING. Perusahaan internet terbesar di China yaitu Baidu, menjalin kemitraan dengan Microsoft dalam menyediakan layanan pencarian dalam bahasa Inggris. Pencarian dalam bahasa Inggris akan dilakukan dari Baidu ke mesin pencari milik Microsoft Bing.
Baidu merupakan mesin pencari data melalui internet di China yang paling dominan dengan pangsa pasar 75%. Langkah itu membuat web Microsoft hadir dalam pasar internet terbesar di dunia.
Baidu berharap layanan tersebut bisa meluncur akhir tahun ini. Sebelumnya, dua perusahaan ini telah bekerjasama dalam pengadaan layanan telepon seluler dan pencarian halaman situs di internet.
Sejumlah analis mengatakan kerjasama ini akan mengambil pangsa pasar Google, yang telah mundur dari pasar China karena masalah sensor pemerintah. Meskipun begitu, Google tetap merupakan mesin pencari data melalui internet yang kedua terbesar di China.
"Kerjasama antara Baidu dan Microsoft akan mendominasi pasar pencari data di China dan akan membuat bisnis Google di China semakin sulit," kata Dong Xu, seorang analis dari Analysys International.

Antisipasi kelangkaan BBM, BPH Migas usulkan kenaikan harga bbm subsidi

2011-07-05T04:06:00.001-07:00

JAKARTA. Konsumsi bahan bakar minyak (BBM) subsidi semakin melambung. Bahkan, beberapa daerah terjadi kelangkaan BBM sehingga mengakibatkan antrean panjang di sejumlah pom bensin.

Disparitas harga menjadi salah satu penyebab kelangkaan BBM subsidi sebab banyak pihak yang tidak bertanggungjawab melakukan kegiatan penyelewengan BBM subsidi.

BBM subsidi banyak yang dijual ke industri dan dijual secara eceran dengan harga lebih tinggi. Caranya, penyalahgunaan BBM subsidi ini dengan memperbesar kapasitas tangki bensin dari 20 liter menjadi 50-100 liter. Sementara pedagang eceran, melakukan pembelian BBM di SPBU berulang kali.

Solusinya, menurut Anggota Komite Badan Pengatur Hilir Minyak dan Gas Bumi (BPH Migas), Adi Subagyo adalah dengan menaikkan harga untuk memperkecil disparitas harga. "Kemudian untuk menangani disparitas harga, kita tergantung pada dua sisi, yaitu harga keekonomian dan keputusan pemerintah," ujar Adi Subagyo, Selasa (5/7).

Untuk harga keekonomian, kata Adi, Indonesia memang tidak bisa mengontrolnya karena mengikuti harga minyak mentah dunia. Sehingga untuk memperkecil disparitas ini, keputusan ada dalam kontrol pemerintah. “Pemerintah mau tidak menaikkan harga untuk mengurangi disparitas,” kata dia.

Menurut Adi, antrean panjang di SPBU tersebut sebenarnya bukan karena langkanya BBM. Secara pasokan, Pertamina masih mempunyai stok yang cukup untuk dipasok ke masyarakat. Namun, terjadi penggunaan BBM berlebihan dan pertumbuhan kendaraan yang mencapai 22%. “Selain itu, masyarakat panik karena melihat antrean di SPBU, jadi ikut membeli dalam jumlah besar,” jelas dia.

Dia juga menyebutkan, minimnya infrastruktur Pertamina juga menjadi penyebab antrean panjang di SPBU. Alasannya, pengiriman BBM oleh perusahaan minyak pelat merah itu masih sangat tergantung oleh kondisi cuaca.

Depot milik Pertamina kebanyakan memang berlokasi di dekat sungai sehingga transportasi utamanya adalah kapal tangki. Namun, pengiriman akan terkendala jika air sungai surut dan kapal Pertamina sulit masuk depot. Pengiriman yang bisa dilakukan dalam 2 hari bisa molor menjadi 4 hari.

Untuk itu, dia menyarankan, agar Pertamina segera melakukan perbaikan infrastruktur dengan memindahkan depot dan mengganti kapal tangki ukuran besar menjadi ukuran kecil. “Tetapi biaya operasi dengan kapal kecil lebih tinggi karena harus bolak-balik mengangkutnya,” kata dia.

BPH Migas, kata dia, juga akan kerja keras untuk mengatasi kelangkaan ini. Pihak BPH akan terus menindak pelaku penyalahgunaan BBM subsidi. Dia mengakui, pihaknya tidak bisa menjalankan pengawasan ini sendirian. Untuk itu, BPH bekerja sama dengan kepolisian, dan pemerintah daerah. Selain itu, menurut Adi, perlu juga kerja sama dengan TNI dan bea cukai untuk mengatasi penyelundupan ke luar negeri.

Dengan pemerintah daerah, BPH telah membuat nota kesepahaman dalam hal pengendalian konsumsi BBM subsidi. Beberapa daerah yang telah membuat kesepakatan adalah Bangka Belitung, Kalimantan Timur, Fakfak, dan Mamuju. Bentuk kontrol dari pemda, bisa berbentuk aturan yang membatasi jumlah volume BBM untuk kendaraan tertentu. “Volume BBM yang didistribusikan cukup tapi tidak berlebihan,” kata dia.

Terkait rencana Pertamina untuk melepas stok BBM agar kelangkaan bisa teratasi, Adi menyatakan dukungannya. Dalam kondisi saat ini banyak terjadi kekosongan BBM, tindakan Pertamina sudah tepat. Meski demikian, perusahaan minyak nasional itu perlu mengontrol besaran volume BBM tambahan yang didistribusikan. Pasalnya, konsumsi BBM subsidi saat ini sudah 5% di atas kuota APBN.

Pembatasan BBM subsidi juga bisa menjadi opsi dalam mengendalikan konsumsi. Adi menyatakan, pembatasan bisa dilakukan melalui pemerintah daerah dengan menggunakan peraturan daerah. “Kalau pemerintah pusat tidak berani, kita gerakkan melalui pemerintah daerah,” kata dia.
Dengan mengatasi berbagai kendala tersebut, menurut dia, saat puasa dan Lebaran nanti pasokan BBM sudah bisa kembali normal. Apalagi, BPH Migas sudah mengajukan tambahan kuota dari 38,5 juta kiloliter menjadi 40,4 juta kiloliter.

AKSI MOGOK KERJA PEGAWAI FREEPORT Selama mogok kerja produksi Freeport anjlok hingga 90%

2011-07-05T04:05:00.001-07:00

JAKARTA. Ribuan pekerja karyawan PT Freeport Indonesia (PTFI) melakukan aksi mogok kerja. Aksi mogok kerja ini telah dimulai sejak 4 Juli 2011 dan rencananya akan berlangsung hingga 11 Juli 2011.

Pemogokan kerja ini dikhawatirkan akan berdampak pada gangguan produksi, sebab dari 8.000 karyawan yang melakukan aksi mogok kerja massal, sebagian besar berasal dari bagian produksi. Bahkan ketika aksi mogok kerja massal ini terjadi tidak ada alat berat yang beroperasi.

"Saat ini produksi tidak penuh. Sebelum aksi mogok kerja kita full capacity 100% tetapi dengan adanya mogok kerja ini hampir seluruh kegiatan produksi berhenti, mungkin tinggal 10% kegiatan produksinya," ujar Ketua Bidang Organisasi pengurus unit kerja serikat pekerja kimia, energy, dan pertambangan serikat pekerja seluruh Indonesia PT Freeport Indonesia (PUK SP KEP SPSI PTFI), Virgo Solossa saat dihubungi KONTAN, Selasa (5/7).

Virgo menyatakan, karyawan sebenarnya sudah mengomunikasikan hal ini dengan pihak manajemen pada tanggal 23 Juni 2011. Dalam surat yang diajukan, karyawan meminta supaya enam pekerja yang di PHK oleh manajemen supaya diberikan surat peringatan 1. Namun, pihak manajemen menolak untuk memberikan surat peringatan.

"Mulai tanggal 30 Juni kami sudah negosiasi dengan manajemen yang difasilitasi pemerintah. Namun belum menemui titik temu sehingga kami melakukan aksi demo ini. Aksi ini sudah kami informasikan kepada manajemen lewat surat tanggal 23 Juni 2011," kata Virgo.

Selain menuntut adanya pembersihan kepada enam karyawan yang di PHK tersebut, karyawan Freeport juga meminta adanya kenaikan upah. Para pekerja Freeport selama ini hanya dibayar US$ 1,5 per jam. Mereka menuntut upah menjadi US$ 3 per jam atau dinaikkan 100%. Para pekerja membandingkan dengan karyawan Freeport McMoran di negara lain menerima upah hingga US$ 15 per jam.

Dihubungi secara terpisah juru bicara PTFI, Ramdhani Sirait membenarkan bahwa kinerja produksi terganggu akibat aksi mogok kerja massal ini. Namun, untuk kegiatan operasi lainnya dan pengapalan tidak terganggu. Pengiriman barang terhadap pembeli masih sesuai dengan jadwal. "Proses pengiriman konsentrat tidak terganggu dan situasi tetap tenang sampai saat ini," ujar Ramdhani Sirait, lewat pesan singkatnya.
Sementara itu, Dirjen Mineral dan Batubara Kementrian Energi dan Sumber Daya Mineral (ESDM), Thamrin Sihite meminta kepada PT Freeport Indonesia untuk segera melakukan negosiasi dan menyelesaikan aksi mogok kerja massal ribuan karyawan perusahaan tambang emas dan tembaga asal AS tersebut.

"Kami minta Freeport segera menyelesaikan aksi demonstrasi. Silahkan bermusyawarah, Itu cara yang paling baik," ujar Thamrin.

Berdasarkan laporan yang masuk kepada pemerintah, aksi mogok kerja massal tersebut belum mengganggu produksi Freeport. Kendati demikian, pemerintah ingin supaya masalah tersebut segera diselesaikan. Proses penyelesaian itu, kata Thamrin karena pemerintah tidak ingin aksi unjuk rasa tersebut tidak sampai mengganggu produksi Freeport.

iPad belum terdaftar dalam 45 produk yang memiliki buku manual Bahasa Indonesia

2011-07-05T04:04:00.001-07:00

JAKARTA. Mencuatnya kasus penangkapan dua penjual iPad di situs forum komunitas maya Kaskus oleh kepolisian membuat Kementerian Perindustrian diminta mengklarifikasi dari sisi perundang-undangan yang berlaku oleh polisi.

Dian Yudha Negara dan Randy Lester Samu dianggap bersalah karena tidak bisa menunjukkan sertifikasi serta tidak memiliki buku manual penggunaan iPad berbahasa Indonesia. Mereka dituding menjual iPad yang tidak resmi di Indonesia.

Nus Nuzulia Ishak, Dirjen Standarisasi Perlindungan Konsumen Kementerian Perdagangan menjelaskan, iPad memang belum termasuk dalam daftar penggunaan standar labeling bahasa Indonesia.
Saat ini baru ada sekitar 45 produk elektronik dan telematika yang telah memiliki petunjuk penggunaan berbahasa Indonesia. Beberapa diantaranya seperti televisi, setrika dan mesin cuci. "iPad memang belum masuk ke dalam 45 daftar produk elektronika dan telematika yang memiliki labeling Bahasa Indonesia itu," ujarnya hari ini (5/7).
Nus menjelaskan, Dalam Peraturan Menteri Perdagangan Nomor 19 Tahun 2009 pasal 2 ayat 1 bahwa setiap produk telematika dan elektronika yang diproduksi dan diimpor untuk diperdagangkan di pasar dalam negeri wajib dilengkapi petunjuk dan kartu jaminan dalam bahasa Indonesia.

Kemudian pada pasal 7 ayat 1 produsen produk telematika dan elektronika dalam negeri wajib mendaftarkan petunjuk penggunaan kartu jaminan ke Kementerian Perdagangan dalam negeri.

Dengan munculnya kasus ini, Kementerian Perdagangan berjanji akan meningkatkan lagi ruang lingkup produk impor yang wajib memiliki label Bahasa Indonesia. "Ke depannya kita akan review aturan ini minimal dua tahun sekali," katanya.

Food, Education and Transportation Trigger Inflation in June

2011-07-02T02:47:00.001-07:00

An IFT poll on inflation forecasts in June shows a median of 0.30 percent (month-on-month) and 5.46 percent (year-on-year). The food sector which anchored inflation in the first five months of the year, set off inflation in June. Inflation in June is also triggered by the education and transportation sectors. This occurs because of seasonality, including the end of the harvest period, the start of school holiday and the new school year.

As many as 12 economists and analysts from the banking sector and other financial institutions, as well as domestic and overseas research institutes expressed the same opinion regarding the three sectors which influenced inflation in the period. All economists and analysts also estimate that the inflation in June (month-on-month) is higher than in May at 0.12 percent (month-on-month). PT Bank Internasional Indonesia Tbk (BNII) stated that it could reach 5-5.5 percent this year, while Standard Chartered Bank estimated 6-7 percent.

The Central Statistics Agency (BPS) plans to announce today the June inflation and actual exports and imports in May 2011. Rusman Heriawan, Head of BPS, said that the core inflation will still be steady in June as there is no price fluctuation. The same is true for headline inflation.

According to him, the core inflation will stand below five percent this month. “There is a fifty-fifty chance of inflation and deflation. If inflation takes place, the percentage will be 0.1-0.2 percent (month-on-month)," he said.

Anton Hendranata, economist of PT Bank Danamon Indonesia Tbk (BDMN), said that the price of chicken, egg, rice, garlic and instant noodles is surging, especially since the middle of the month.

The spending for recreation and transportation, especially air transport, also climbed during the school holiday. "So, we estimate that the core inflation will rise. Rupiah appreciation will no longer support it, due to the relatively stable exchange rate," he said.

According to Eric Alexander Sugandhi, economist of Standard Chartered Bank, rupiah strengthening will still continue, but it tends to be softer. If the price of fuel oil increases, then inflation expectations by year-end will reach seven percent. Otherwise, it will stand at six percent.

According to Purbaya Yudhi Sadewa, Head Resarcher at Danareksa Research Institute, the annual inflation assumption in June at 5.3 percent, which is less than that of last year at 5.47 percent, is largely due to the higher electricity tariff this year.

Moreover, the June figure is not the peak of inflation as it will occur in August during the fasting month and Idul Fitri holiday, according to Tony A. Prasentiantono, Head Economist of PT Bank Permata Tbk (BNLI).

Yield of Govt Bonds Drops Due to Settlement of Greece Crisis

2011-07-02T02:41:00.000-07:00

Investors are starting to respond positively to the developments in the settlement of the fiscal crisis in Greece. This is shown in the lower yield of government bonds which indicates that investors shall re-enliven the domestic bond market in the second semester, according to an analyst.

Agus Salim, bond analyst at CIMB Principal Asset Management, said that the progress in Greece is that the government passed a budget austerity program as a bailout prerequisite from the International Monetary Fund (IMF) and European Union.

Based on data from the Indonesia Bond Pricing Agency, the yield of five-year Treasury Bonds series FR0055 stood at 6.85 percent on Thursday, a drop from Tuesday's 6.89 percent. Meanwhile, the yield of the 15-year FR0056 fell from 8.18 percent to 8.17 percent, and the yield of the 20-year FR0054 slid from 8.67 percent to 8.66 percent.

“Despite the external negative sentiment, the market has become rational. Nevertheless, the funds do need places, which are currently restricted. Emerging markets like Indonesia, are still the choice because no risk potential is seen up to now, like the risks seen in Greece. Our fundamentals are still healthy,” Agus said.

Rahmat Waluyanto, Director General of Debt Management at the Finance Ministry, said that the reduction in state bonds yield is attributed to foreign investors' confidence in Indonesia's prospects for the long run. As of June 27, foreign ownership in state bonds attained Rp 235.37 trillion (US$ 27.54 billion), a 4.31 percent growth compared to Rp 225.65 trillion in early June.

According to Ariawan, bond analyst of BNI Securities, said that aside from the external factor, the reduction is also a result of a perception of domestic inflation, which is still under control. "The inflation rate in June is still manageable. This makes overseas investors continue to purchase bonds in local markets," he said. However, such sentiment may not persist. Towards the second half of the year, the inflation rate may accelerate, thus increase the bonds yield. Ariawan expects that there will be yield hike potential for state bonds of various tenors within the range of 30 to 40 basis points.

"The inflation acceleration in the second semester will be triggered by seasonal factors, such as the fasting month and Idul Fitri holiday. However, the increase in yield may not be too significant," he said

Budget Deficit Stands at 1.9-2% of GDP

2011-07-02T02:38:00.001-07:00

The government estimates that the budget deficit in the 2011 Revised State Budget will stand at 1.9 - 2 percent of the gross domestic product (GDP), This is higher than the previous target at 1.8 percent or Rp 124.7 trillion (US$ 14.46 billion). Agus Martowardojo, Finance Minister, said that the government has not decided which budget heading to press down in order to prevent the deficit from becoming too high.
Based on the State Budget, the assumption on state expenditure this year has reached Rp 1,229.6 trillion. The government allots Rp 180.6 trillion for employee expenses, Rp 254.3 trillion for goods and capital expenditures and Rp 187.6 trillion for subsidies.

Rully Nova, economist of Banks Saudara, said that the condition of Indonesian budget is safe if compared with the international consensus which sets the deficit maximum limit at four percent of the GDP. The chance for the government to cover the deficit through the state bonds issuance is quite big, as the domestic macro economic stability is still good. Moreover, global liquidity is quite considerable. However, the government is expected to be careful with the upheaval potential in the second half of the year, when the bond yield surges.

The government also has a possibility to increase the tax revenue. However, it should still provide tax incentives for real sectors to maintain the economic growth. Within the revised State Budget, there is a potential of additional state revenue and expenditure. “The attempt to raise the tax revenue needs time," Agus said.

2012 Deficit

Armida Alisjahbana, National Development Planning Minister, said that the government is optimistic with the 2012 budget deficit target at 1.4-1.9 percent. It is seen as realistic enough.

According to Agus, the target is based on four factors. First, the increment of state revenue, either from taxable or non-taxable incomes. Second, additional state budget for capital expenditure as the major component of infrastructure expenses, followed by the management of goods expenditure and official trips. Third, the capability of realistic financing sources, especially from domestic or overseas loans. And fourth, the consistency of the government’s debt ratio reduction against the GDP.

For the effectiveness of deficit management, the government will optimize the expenditure by enhancing the efficiency of goods and capital expenditures, as well as the usage of state ministries and institutional budget.

Bakrie Telecom Targets 10% Revenue Contribution from VAS

2011-07-02T02:37:00.001-07:00

PT Bakrie Telecom Tbk (BTEL), operator of Esia, expects 10 percent income contribution of Value Added Service (VAS) to the total revenue. Last year, VAS income also contributed 10 percent or Rp 345 billion (US$ 40.36 million). The company will develop the variety of VAS to achieve the target. Eric Meijer, Deputy President of Bakrie, claimed that the company’s income target for VAS is the highest among other telecommunication operators as most of them combine the income from data and VAS. This year, the average of VAS growth for telecommunication industry could grow six percent.
The biggest contribution of VAS income came from social network, ring back tone, local chatting application which is developed by Bakrie, music download, game and Islamic teaching service application. The services are integrated in Esia mobile bundling package.
“From Esia’s average revenue per user of Rp 25,000, ten percent of them are contributed by access to VAS," he said.
Last Thursday, Bakrie Telecom added its VAS portfolio by releasing Usahaku service which allow sale of cell phone credits and provide job info services for small and medium business segments. The service is available in three of Esia’s newest mobile phones, which the company targets to sell 600 thousand units by year-end. Eric expects the service to be integrated into two million Esia mobile phones in the next two years.
Usahaku service is a development of Usaha Bersama Esia program which has been running since 2008. The program is intended for Esia users who want to use telecommunication facilities for business. It now has 7,500 users and it is projected to reach 600 thousand users by late this year.
Bakrie Telecom will continue to develop its VAS. The company is forming the Prinsipal Nusantara Incubation Fund to develop 20 local startups until 2014. The company has prepared internal capital of Rp 100 billion for this project. Nusantara Incubation will be used to develop a business model and open startup connections to investors and the market.
On Thursday's trade closing, share price of Bakrie Telecom remained at Rp 365 per share.

Serial Unit Link Optimal Unit Link, atau Asuransi dan Investasi Terpisah?

2011-06-30T04:15:00.000-07:00

- Pembaca yang bijak artikel ini ditulis adalah untuk menjawab petanyaan yang masih relevan meskipun esensi dari artikel adalah pengulangan karena sudah pernah saya tulis di media internet (portal reksadana) sekitar tahun 2007, pertanyaan tersebut adalah mana yang terbaik jika saya membeli asuransi jiwa unit link atau membeli asuransi dan melakukan investasi secara terpisah?

Untuk menjawabnya alangkah bijaknya kita mengenal lebih dalam satu diantara beragam macam produk asuransi jiwa yang dijual di Indonesia, produk tersebut adalah produk asuransi tradisional term life dengan jenis YRT (Yearly Renewable Term) yang memiliki Uang Pertanggungan yang tinggi namun dengan premi yang relatif sangat rendah dan premi akan meningkat setiap tahunnya.
Secara umum produk ini idealnya dibeli oleh mereka yang baru mulai bekerja hingga mereka yang telah menduduki posisi kunci di perusahaan. Namun bagi mereka yang telah memasuki usia pensiun (usia diatas 60 tahun) produk ini kurang memberikan manfaat yang optimal, apalagi jika yang bersangkutan masih belum memiliki asuransi dan investasi reksa dana sementara ia memiliki anak yang masih kecil (usia 5 tahun) rasanya produk ini tidaklah cocok.
Mengapa demikian? Hal ini disebabkan karena produk YRT di Indonesia hingga saat ini hanya memberikan perlindungan sampai dengan usia tertanggung mencapai 70 tahun. Jadi diatas usia tersebut produk ini tidak berfungsi.
Asuransi jenis YRT ini memiliki biaya yang sangat rendah, biaya yang terdapat pada asuransi ini adalah biaya asuransi yang dikenakan untuk menutupi biaya mortalita, besarnya variatif (tergantung usia masuk, jenis kelamin, Uang Pertanggungan serta faktor kesehatan) dibayarkan secara berkala dalam bentuk premi serta dipastikan meningkat setiap tahun, sejalan dengan pertambahan usia nasabah.
Meskipun demikian, peningkatannya relatif kecil dan apabila dikombinasikan dengan investasi melalui reksadana maka hal ini sangat berpotensi untuk mempercepat nilai akumulasi investasi reksadana tersebut.
Sebagai contoh seorang pria tidak merokok usia usia 39 tahun, uang pertanggungan Rp 1 miliar, kisaran premi yang dibayar per tahun adalah Rp 3,5 juta hingga Rp 4 juta (menabung sebesar Rp 292.000 hingga Rp 334.000 per bulan). Pada periode yang sama juga dilakukan investasi pada reksadana. Investasi dilakukan secara berkala (setiap bulan atau setiap tiga bulan) hingga target nilai uang di masa mendatang tercapai. Di sisi yang lain orang tersebut melakukan perbandingan jika ia membeli unit link dengan premi regular atau premi berkala bukan premi tunggal (nama perusahaan asuransi kami rahasiakan - lihat tabel 2).
Tabel 2 Perbandingan manfaat antara seseorang yang melakukan asuransi dan investasi reksadana secara terpisah dengan yang seseorang yang melakukan asuransi dan investasi dengan unit linked dengan premi regular. (Asumsi: usia 39 tahun; pria; tidak merokok; uang pertanggungan asuransi jiwa/unit linked Rp 1.000.000.000)

Akhir Tahun Ke -	Usia (Tahun)	Ringkasan transaksi			Estimasi Nilai Investasi Pada Akhir Tahun (12% Per Thn)		Estimasi Manfaat Meninggal
		Investasi pada Reksadana (awal tahun)	Pembayaran Premi Asuransi Jiwa Jenis YRT (awal tahun)	Pembayaran Premi pada Unit Linked (awal tahun)	Estimasi Nilai Investasi Pada Akhir Tahun (12% Per Thn)		Estimasi Manfaat Meninggal
					Asuransi Jiwa YRT + Reksadana (dalam 000 Rupiah)	Asuransi Jiwa Unit Linked (dalam 000 Rupiah)	Asuransi Jiwa YRT + Reksadana (dalam 000 Rupiah)	Asuransi Jiwa Unit Linked (dalam 000 Rupiah)


		Jumlah Total Per Tahun		Jumlah Total Per Tahun

1	40	Rp 17.500.000,-		Rp 17.500.000,-	15,504	-	1,015,504	1,000,000
11	50				295,741	203,960	1,295,741	1,203,960
21	60				997,464	755,903	1,997,464	1,755,903
31	70				2,534,572	2,039,428	3,534,572	3,039,428
41*	80*				8,365,068	5,568,306	8,365,068	6,568,306

Catatan:
• Estimasi nilai investasi tidak dijamin tergantung pada kinerja reksadana yang dipilih serta kinerja alokasi investasi pada unit linked yang dipilih, dapat lebih rendah maupun lebih tinggi dari 12 persen per tahun.
• Cuti Premi tahun ke 18
*Proteksi asuransi jiwa YRT sampai usia 70 tahun.

Dari contoh tabel diatas jelas terlihat asuransi unit link secara jangka panjang tidak menghasilkan pertumbuhan investasi yang optimal, terjadi selisih sekitar Rp 500 juta (dengan asumsi return 12 persen per tahun). Mengapa hal ini dapat terjadi? Biaya yang tinggi adalah jawabannya. Ya unit link memang terlihat mudah namun komponen biaya yang tinggi berimbas pada melambatnya laju pertumbuhan investasi, selain itu biaya yang tinggi juga berimbas pada rendahnya manfaat uang pertanggungan (UP). Penjelasan mengenai biaya yang tinggi pada Unit Link telah kami paparkan pada artikel Kelebihan dan Kekurangan Unit Link.

Kita harus sadari bahwa untuk menghitung besarnya uang pertanggungan, hendaknya kita mengerti akan nilai ekonomis pada diri kita dikombinasikan dengan tujuan keuangan dari diri kita misalnya kebutuhan proteksi dana pendidikan, proteksi atas penghasilan dll. Lalu tentukan berapa besar nilai uang yang akan kita berikan kepada keluarga tercinta jika terjadi risiko meninggal kita. Jadi jika uang pertanggungan masih kurang atau belum mencukupi maka keluarga yang kita tinggalkan akan bersusah payah untuk mencukupi kebutuhan finansial pada saat kita sebagai tertanggung sudah meninggal dunia, hmm sedih bukan?

Demikian ilustrasi dari kami semoga pembaca dapat mengambil manfaat dari pemaparan diatas, tulisan ini hanyalah untuk pembelajaran bagi pemirsa tanpa tendensi negatif apapun dan juga bukan untuk mendeskreditkan produk unit link. Apakah dengan unit link atau non unit link dikombinasikan dengan reksadana secara terpisah. Masing-masing memiliki kelebihan dan kekurangan. Dengan demikian asuransi jiwa adalah suatu kebutuhan, pilihan ada ditangan pembaca yang cerdas dan bijak, selamat memilih.

Apakah Penghasilan Saya sudah Ideal?

2011-06-30T04:13:00.000-07:00

- "Waduh nak, nanti aja ya belinya ya.., sekarang lagi tanggung bulan ni..," Kalimat tersebut terkesan akrab di telinga kita. Ya, memang akrab bukan karena kita suka menggunakan kalimat itu namun kita terpaksa mengeluarkan kalimat tersebut. Hal itu disebabkan oleh kenyataan bahwa pemasukan atau gaji yang kita terima ternyata hanya mampu "menghidupi" kita selama 20 hari atau bahkan kurang dari itu dalam sebulan.

Ya, ini adalah fakta yang terjadi, sering kali kita merasa gaji belum cukup, masih kurang, jangankan untuk ditabung atau investasi, memenuhi keinginan kita saja masih kurang, ya sekali lagi masih kurang!.
Lalu pertanyaan selanjutnya adalah berapa besar gaji yang wajar bagi kita? Pembaca yang bijak, untuk menjawabnya alangkah baiknya jika kita melakukan evaluasi dan introspeksi secara jujur, untuk itu silahkan untuk menjawab beberapa pertanyaan dibawah ini dan catatlah hasilnya:
1. Sudah berapa lamakah (tahun dan bulan) saya telah menerima gaji?;
2. Sudah berapa kali saya mengalami kenaikan gaji?;
3. Berapa rupiahkah saat pertama saya kita menerima gaji? Berapa rupiahkah besar gaji saya saat ini?;
4. Apakah saya selalu membayar cicilan utang setiap bulan?;
5. Adakah bagian dari gaji yang dapat disimpan untuk investasi?
6. Apakah saat ini saya mengalami defisit (gaji tidak dapat bertahan sampai akhir bulan)?, jika jawabnya ‘tidak’ maka kami ucapkan selamat namun jika jawabanya‘ya’ maka disinilah letak permasalahannya.
Bagi anda yang menjawab ‘ya’ maka langkah selanjutnya adalah lakukan valuasi penghasilan anda, dalam melakukan valuasi, jawabannya hanya ada tiga kelompok, yakni:
1. Tahapan yang buruk (Poor Income Valuation);
2. Tahapan yang wajar (Fair Income Valuation);
3. Tahapan yang ideal (Ideal Income Valuation). Nah berikut ini adalah penjelasan serta solusinya dari kelompok - kelompok tersebut :
Tahapan yang buruk (Poor Income Valuation): adalah tahapan dimana kondisi total pengeluaran lebih besar dari penghasilan atau dikenal dengan istilah "Besar Pasak dari Tiang", dalam kondisi ini arus kas menjadi defisit atau negatif disertai dengan bobot cicilan hutang perbulan diatas 45 persen dari total penghasilan. Perhatikan contoh berikut (tabel 1):
Tabel 1 uraian pengeluaran per bulan, mencakup:
• Besar penghasilan,
• Pengeluaran diluar cicilan utang,
• Cicilan utang tiap bulan,
• Surplus atau defisit penghasilan,
• Surplus atau defisit cicilan utang

No	Uraian per bulan	Besarnya	Bobot VS Pendapatan
1	Penghasilan Bersih (saat ini) Take home pay	Rp 8,000,000	86.49%
2	Pengeluaran (diluar cicilan utang)	Rp 5,000,000	54.05%
3	Cicilan utang	Rp 4,250,000	45.95%
4	Total pengeluaran = 2+3	Rp 9,250,000	100.00%
5	Surplus (defisit) pengeluaran = 1 – 4	Rp (1,250,000)	-13.51%
6	Surplus (defisit) cicilan utang = (1*30%) – 3	Rp (1,850,000)	-23.13%

Dalam contoh kasus diatas terlihat bahwa: 1. Pengeluaran (defisit) Rp 1.250.000. 2. Cicilan utang melebihi batas wajar maksimal per bulan yakni defisit Rp 1.850.000 atau berlebih sebesar 23,13 persen dari batas maksimal cicilan utang yakni 30 persen atau sebesar Rp 2.400.000.
Ini berarti bahwa, pada kasus tersebut, yang bersangkutan berpotensi untuk menutupi defisit (kekurangan) dengan cara menambah utang. Hmm.., berpotensi untuk ‘gali lubang tutup lubang’, awas hati-hati jika kebesaran lubangnya akan mudah untuk terjerumus!. Utang tersebut biasanya didapat dari Kartu Kredit, Kredit Tanpa Agunan (KTA) atau dengan jenis utang yang lain. Cara tersebut sangat berbahaya dan tidak dapat dibenarkan.
Saya katakan bahwa kondisi dan kebiasan ini wajib dihentikan, stop sesegera mungkin. Saran saya adalah sebaiknya pada kondisi ini segera minta bantuan dana, ingat bantuan dan bukan pinjaman untuk jangka waktu yang pendek. Atau usahakan untuk melakukan pinjaman lunak jangka panjang, kelak akan dikembalikan jika telah ada kemampuan.
Jaminan pinjaman tersebut apa? jika ada properti bisa dilakukan jaminan namun jika tidak ada apapun maka satu-satunya cara adalah jaminan pribadi (diri sendiri), ini bisa dilakukan dengan menghubungi dari relasi ataupun keluarga yang sangat dekat.
Nah kiat anda pun harus jelas, dalam waktu bersamaan sebelum anda meminjam atau meminta bantuan, anda juga harus mencari solusi dengan tujuan agar terjadi peningkatan income hal itu dapat dilakukan dengan cara:
a) Walaupun anda masih bekerja, anda wajib untuk mencari pemasukan tambahan (melalui usaha dengan modal pinjaman kepada relasi atau keluarga terdekat tersebut) lakukan studi kelayakan yang akurat dan objektif agar potensi keberhasilan usaha anda menjadi lebih besar dari kemungkinan gagalnya;
b) Berupaya agar gaji bertambah dengan cara pindah bekerja atau melakukan kerja yang lebih giat lagi (utamanya bagi tenaga penjual atau salesman) sehingga komisi atau bonus bertambah;
c) Menekan pengeluaran rutin (melakukan efisiensi) dengan ketat;
d) Jangan lupa melakukan manajemen resiko melalui asuransi jiwa dengan memiliki Uang Pertanggungan yang cukup untuk mengembalikan pinjaman tersebut (ingat kematian pasti akan datang, namun tidak diketahui waktunya);
e) Sebagai masukan adalah asuransi jiwa tipe YRT (Yearly Renewable Term) bukan yang lain, sebagai contoh seorang pria tidak merokok usia 35 tahun, uang pertanggungan Rp 500 juta, kisaran premi pada asuransi YRT per tahun adalah sebesar Rp 1,5 juta hingga Rp 1,75 juta.
Selanjutnya, anda wajib mengubah menuju tahapan yang wajar, berikut penjelasannya:
Tahapan yang wajar (Fair Income Valuation): adalah kondisi dimana anda tidak defisit, besar cicilan utang masih berada diatas 30 persen dari pendapatan, namun yang bersangkutan mampu untuk melakukan investasi demi kesejahteraan dia dan keluarganya kelak, porsi investasi minimal adalah sebesar 10 persen dari penghasilan. Kemudian adalah bagaimana kita mengubah dari kondisi yang buruk (poor income valuation) menjadi kondisi yang wajar (fair income valuation), nah untuk kasus diatas berapa besar income yang wajar tersebut?, berikut adalah formulasi valuasi penghasilan wajar, yakni:
Total pengeluaran dalam kondisi defisit / 90 persen
Mengapa pembagi harus 90 persen? Hal ini disebabkan karena untuk mencapai zona kebebasan finansial atau anda menjadi lebih kaya maka wajib menyisihkan penghasilan minimal 10 persen dan ditempatkan pada investasi yang tepat serta yang bersangkutan juga harus menjaga cicilan utang terus menurun hingga makin mendekati batasan maksimal 30 persen dari pendapatan anda.
Sehingga contoh kasus (tabel 1 diatas) penghasilan menjadi Rp 10.277.777. Atau untuk jelasnya silahkan perhatikan tabel berikut
Tabel 2:

	Valuasi Penghasilan Wajar (saat nanti)	Besarnya	Bobot VS Pendapatan
7	Pendapatan Bersih Wajar	Rp 10,277,777	100.00%
8	Dana yg di Investasikan (wajib)	Rp 1,027,778	10.00%
9	Pengeluaran (diluar cicilan utang)	Rp 5,000,000	48.65%
10	Cicilan utang	Rp 4,250,000	41.35%
11	Total pengeluaran = 8+9+10	Rp 10,277,778	100.00%
12	Surplus (defisit) pengeluaran = 7 – 11	Rp (0)	0.00%
13	Surplus (defisit) cicilan utang = (7*30%) – 10	Rp (1,166,667)	-11.35%

Analisa: dari tabel terlihat bahwa defisit sudah nol dan cicilan utang menurun dari bobot terhadap penghasilan dari 45,95 persen menjadi 41,35 persen. Kondisi ini sudah lebih baik walau belum menjadi tahapan yang ideal (Ideal Income Valuation).

Tahapan terakhir adalah Tahapan yang ideal (Ideal Income Valuation): pada tahapan ini individu/keluarga tersebut sudah berada pada koridor keuangan yang sehat, yakni sesuai tabel:
Tabel 3:

	Valuasi Penghasilan Ideal (saat nanti)	Besarnya	Bobot VS Pendapatan
14	Pendapatan Bersih Ideal	Rp 19,166,667	100.00%
15	Dana yg di Investasikan (wajib)	Rp 1,916,667	10.00%
16	Pengeluaran (diluar cicilan hutang)	Rp 5,000,000	26.09%
17	Cicilan hutang	Rp 4,250,000	22.17%
18	Total pengeluaran = 15+16+17	Rp 11,166,667	58.26%
19	Surplus (defisit) pengeluaran = 14 - 18	Rp 8,000,000	41.74%
20	Surplus (defisit) cicilan hutang = (14*30%) - 17	Rp 1,500,000	7,83%
21	Dana yang di Investasikan (tambahan)	Rp 8,000,000	41.74%

Adapun formulasi Valuasi Penghasilan Ideal adalah:

Cicilan utang perbulan/30 persen + Pengeluaran (di luar cicilan utang)
Analisa: terlihat bahwa bobot cicilan hutang telah mencapai kurang dari 30 persen yaitu 22,17 persen serta terjadi surplus pendapatan sebesar 41,74 persen dan ada kelebihan dana yang dapat ditambahkan untuk investasi sebesar Rp 8.000.000 atau 41,74 persen.

Pertanyaan selanjutnya adalah bagaimana saya mendapatkan tambahan penghasilan tersebut?, jawabannya sudah tertera pada artikel ini yaitu berupa kiat anda sebelum meminjam atau meminta bantuan dana (butir a hingga e). Hal ini memang tidak mudah namun setidaknya juga bukan sesuatu yang mustahil. Setidaknya anda sudah mengetahui batasan penghasilan yang sehat sesuai dengan kondisi anda.
Pada contoh kasus ini penghasilan yang defisit sebesar Rp 8.000.000,- harus diperbesar menjadi surplus dalam kisaran Rp 10.277.777 hingga Rp 19.166.167 agar yang bersangkutan dapat menjadi bertambah kaya di kemudian hari.
Sekedar informasi penghasilan dan cicilan utang yang dimaksud disini adalah dapat merupakan penghasilan dan cicilan uutang gabungan (suami & istri).

Namun sebaliknya secara realistis kita harus siap dan wajib melakukan 'pengetatan super ekstra' terhadap pengeluaran jika proyeksi untuk mendapatkan penghasilan tambahan belum nampak, walaupun dana bantuan telah tersedia.

Apakah Saya Perlu Jasa Perencana Keuangan?

2011-06-30T04:12:00.001-07:00

Pada awalnya perencanaan keuangan itu sangat sederhana karena hanya mengatur situasi keuangan kita sendiri, misalnya untuk dana pendidikan, perlindungan penghasilan hingga perencanaan untuk kebutuhan usaha maupun perencanaan untuk memenuhi kebutuhan pensiun kelak.Sepintas terlihat mudah, namun jika kita telusuri lebih lanjut, ternyata fakta menunjukan bahwa sangat banyak masyarakat yang mendapatkan masalah keuangan baik di masa kini maupun (utamanya) dikemudian hari, dana yang telah direncanakan ternya tidak mencukupi kondisi aktual kebutuhan finansial kita.
Sebuah perencanaan akan bermakna jika hasil perencanaan ternyata sesuai bahkan alangkah baiknya jika ternyata dapat melebihi kondisi aktual kebutuhan finansial kita. Dengan demikian keputusan finansial yang diambil memiliki manfaat besar bagi dirinya maupun keluarga yang dicintainya.
Jadi perenanaan keuangan merupakan alat bantu (tools) agar bisa mencapai kebutuhan-kebutuhan keuangan mereka di masa kini dan di masa depan. Pada akhirnya setiap orang akan memiliki kebebasan finansial atau financial freedom.
Klasifikasi Tujuan Keuangan
Dalam melakukan perencanaan keuangan, setiap individu maupun keluarga tentu memiliki tujuan keuangan yang berbeda namun dapat kita klasifikasikan sebagai berikut:
1. Proteksi keuangan atas resiko alamiah (Protection planning): a. Meninggal terlalu dini; b. Kehilangan kemampuan karena cacat; c. Biaya perawatan medis akibat usia yang terlalu panjang; d. Kehilangan property atau aset; e. Kehilangan pendapatan atau pekerjaan akibat sakit maupun kecelakaan.
2. Akumulasi dana (investment planning): a. Penyediaan dana darurat (emergency fund); b. Perencanaan dana pendidikan; c. Kebutuhan dana rutin dan dana liburan; d. Kebutuhan untuk usaha.
3. Manajemen utang (Debt planning & debt management): a. Merencanakan utang yang produktif bukan konsumtif; b. Melepaskan diri atau keluarga dari jeratan utang.
4. Perencanaan pajak (Tax planning): a. Selama hidup; b. Setelah meninggal.
5. Perencanaan dana untuk pensiun (Retirement planning): a. Menjalankan hobby saat pensiun; b. Tambahan persiapan dana medis.
6. Perencanaan waris (Wealth distribution & estate planning): a. Meninggalkan harta yang banyak dan menekan potensi konflik keluarga; b. Perencanaan pertumbuhan dan distribusi properti.
Demikian pembaca yang bijak kini saatnya anda menilai secara objektif apakah saya dan keluarga sudah melakukan perencanaan enam butir klasifikasi keuangan diatas?, jika sudah apakah telah dilakukan dengan optimal?, apabila belum dan anda tidak yakin apakah sudah optimal atau tidak, jika demikian adanya maka anda mutlak memerlukan jasa perencana keuangan.

Perencanaan Keuangan Bagaimana Menuju Kebebasan Finansial?

2011-06-30T04:11:00.000-07:00

Siapa yang tidak pernah mendengar tentang kebebasan keuangan? Tentu anda semua pasti sudah sering mendengar istilah tersebut. Dan kebanyakan orang yang bekerja pasti mengidam-idamkan agar bisa mencapai kebebasan keuangan. Tapi apakah yang benar-benar dimaksud dengan kebebasan keuangan?

Kebebasan keuangan adalah dimana seseorangan mencapai saving cukup banyak dan relatif aman, dan hasilnya mencukupi kebutuhan-nya untuk hidup dengan gaya hidup yang diinginkan. Kebebasan finansial juga dapat dapat didefinisikan sebagai fase ketika kita berada dalam ketenangan dan pilihan untuk tidak bekerja lagi demi uang, karena uanglah yang bekerja untuk kita (passive income). Yang dimaksud dengan passive income disini adalah uang yang masuk tanpa harus kita bekerja.
Saving bisa dicapai dengan berbagai cara, misalnya dengan tabungan, deposito, namun untuk mendapatkan hasil yang lebih baik yakni diatas nilai inflasi maka saving wajib di kombinasikan dengan investing seperti pada reksa dana, saham, properti, dll.
Adapun pendapatan yang didapat dari active income adalah penghasilan yang didapat karena bekerja lalu dibayar atau mendapat upah dan kalau tidak bekerja tidak akan mendapatkan penghasilan. Sekedar catatan kalau kita bekerja sebagai karyawan umumnya kenaikan gaji (income) yang didapat berada dibawah tingkat inflasi, sehingga daya beli menjadi menurun sejalan dengan bertambahnya waktu. Untuk mengatasi kondisi tersebut maka alangkah bijaknya jika kita memiliki orientasi pertumbuhan aset dalam bekerja.
Jika tidak maka kita berpotensi untuk bekerja secara terus menerus, berikut perbedaan orientasi bekerja adalah:
1. Bekerja => active income output => lifetime work;
2. Bekerja => asset => passive income output => financial freedom.
Agar fase kebebasan keuangan tercapai, tentu harus dilakukan aktifitas saving & investing, yakni:
a. Saving & investing = Consumption Ini adalah kondisi ideal dimana tabungan & investasi berada dalam jumlah yang seimbang dengan pengeluaran, artinya income yang diterima hanya 50 persen yang digunakan untuk konsumsi, sedangkan sisanya untuk tabungan dan investasi. Biasanya pola ini cocok untuk anak muda yang belum menikah dimana kewajiban (liability) / utang belum ada. Untuk mencapainya memang kita harus bekerja dengan cerdas, bagaimana uang kita dapat bekerja keras untuk kita dan menghasilkan passive income.
b. Saving & investing = Consumption - Debt
Pada pola ini tabungan dan investasi lebih sedikit dikarenakan adanya kewajiban utang (debt), pada kondisi ini memang dibawah ideal namun masih wajar. Biasanya tahap ini terjadi bagi mereka yang sudah berkeluarga. Perkembangan zaman dan industri keuangan, mendorong tumbuhnya instrumen utang, hal ini menyebabkan pemakaian dan upaya untuk mendapatkan utangpun menjadi lebih mudah. Sekarang semakin banyak ditemukan konsumsi berbasis utang (kartu kredit, KTA atau kredit tanpa agunan dan lain-lain).
Karena itu, hanya menjaga keseimbangan antara saving, invesment & consumption saja tidak cukup, tetapi harus ditambah dengan menyiasati agar kita bisa terbebas dari utang. Utang adalah pembunuh kebebasan primer. Ingin kebebasan finansial? Hal pertama yang harus anda lakukan adalah keluar dari utang. Itu adalah prioritas nomor satu.

c. Saving & investing = Consumption - Debt + Protection
Pola ini merupakan yang paling bijak bagi mereka yang telah berkeluarga dan memiliki anak, meskipun tabungan dan investasi tidak sebesar tahap sebelumnya namun penyebabnya adalah alokasi dana untuk proteksi (manajemen resiko) biasanya dalam bentuk premi asuransi.
Sejalan dengan berkembanganya industri asuransi dan peningkatan dana pendidikan tentu juga mempengaruhi kebebasan finansial. Karena kita harus memenuhi unsur proteksi untuk diri sendiri maupun keluarga dalam bentuk asuransi maupun investasi dana pendidikan.
Ada beberapa tahap sebelum mencapai kebebasan finansial (financial freedom), yakni:
1. Financial Protection yaitu suatu kondisi keuangan dimana kita mempunyai cukup uang untuk memenuhi pengeluaran bulanan minimum, untuk 2 bulan sampai 24 bulan tanpa harus bekerja.
2. Financial Security yaitu suatu kondisi keuangan dimana kita mempunyai investasi cukup banyak yang relatif aman, dan hasilnya dapat mencukupi kebutuhan diatas minimum tanpa harus bekerja lagi, kecuali bila kita memilih untuk bekerja.
3. Financial Vitality yaitu suatu kondisi keuangan dimana kita mencapai investasi cukup banyak yang relatif aman, dan hasilnya tidak hanya bisa mencukupi kebutuhan pada tingkat Financial Security (di atas minimum) melainkan juga bisa mencukupi kebutuhan sekunder tanpa harus bekerja, kecuali bila kita memilih untuk bekerja.
4. Financial Independence yaitu suatu kondisi keuangan dimana kita mencapai investasi cukup banyak yang relatif aman, dan hasilnya mencukupi kebutuhan kita untuk hidup persis dengan gaya hidup kita yang sekarang. Dengan kata lain kita bebas tidak bekerja.
5. Financial Freedom yaitu suatu kondisi keuangan dimana kita mencapai investasi cukup banyak yang relatif aman, dan hasilnya mencukupi kebutuhan kita untuk hidup dengan gaya hidup yang kita inginkan (lebih baik dari gaya hidup sekarang).
Sudah sampai tahap manakah anda?
Faktor penting lainnya dalam mencapai kebebasan finansial untuk anda adalah sangat ditentukan oleh gaya hidup anda saat ini, esok dan masa depan. Sebagian orang lebih suka hidup sederhana, dan akan selalu ingin hidup seperti itu, maka tipe seperti ini akan mencapai tingkat kebebasan keuangan lebih cepat dari pada mereka yang memiliki pola hidup mewah. Pada akhirnya, kebebasan finansial adalah tentang kontrol pengeluaran terhadap diri kita sendiri. Kebebasan finansial adalah sebuah pilihan bukan kebetulan.

Waspadai Arus Balik Modal Asing

2011-06-30T04:09:00.001-07:00

SHUTTERSTOCK

TERKAIT:

JAKARTA, KOMPAS.com - Indonesia perlu mewaspadai arus balik modal asing (reversed capital inflow) pasca berakhirnya kebijakan uang longgar (quantitave easing-QE) yang diterapkan Bank Sentral Amerika Serikat.
"Bank sentral Indonesia perlu menyiapkan cadangan devisa sebagai antisipasi untuk meredam gejolak pasar uang jika tiba-tiba terjadi penarikan portofolio asing," ujar Ekonom Merril Lynch Chua Hak Bin dalam perbincangan dengan Kompas, Selasa (28/6/2011).
The Fed, Bank Sentral AS, mulai menerapkan QE tahun lalu dengan tujuan mempercepat pemulihan ekonomi negara Paman Sam yang ambruk akibat krisis finansial 2008. Pada prinsipnya QE dilakukan dengan seolah-olah ada penambahan uang milik bank sentral. Uang maya tersebut kemudian bergerak ke perbankan dan pasar modal melalui pembelian aset berupa saham, obligasi korporat, maupun obligasi pemerintah.
Langkah bank-bank sentral melakukan QE ini tidak terlalu bermasalah selagi pelaku pasar dan pengguna uang pemerintah tersebut masih mempercayainya. Masalahnya adalah ketika hal ini semakin sering dilakukan - maka nilai mata uang dari negara tersebut akan terus tergerus dengan cepat dan merugikan siapapun yang memegangnya.
Hak Bin mengatakan negara-negara emerging market di Asia Tenggara seperti Indonesia dan Thailand menikmati derasnya masuknya modal asing yang luar biasa dalam dua tahun terakhir. "Laju capital inflow mencapai empat kali lipat dibandingkan sebelum masa krisis, Ini mengkhawatirkan. Kepemilikan asing atas surat berharga negara milik pemerintah Indonesia sudah mencapai 30,6 persen," kata Hak Bin.
Posisi cadangan devisa Indonesia yang mencapai 100 miliar dollar AS dinilai cukup kuat untuk mengatasi goncangan. Cadangan itu diperlukan untuk menopang rupiah agar tidak jatuh terlalu dalam jika terjadi arus modal keluar dalam jumlah besar.
lowongan kerja terbaru

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2011-06-25T01:47:00.000-07:00

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Investor beralih ke safe haven dollar, mata uang regional keok

2011-06-22T22:47:00.001-07:00

Mata uang Asia keok, dipimpin pelemahan won Korea Selatan dan ringgit Malaysia. Tertekannya mata uang regional setelah The Fed memangkas proyeksi pertumbuhan ekonomi AS, dan kekhawatiran Yunani akan gagal bayar masih bertahan.

Won jatuh 0,3% ke 1.077,40 per dollar AS pada pukul 11.54 di Seoul. Sementara, ringgit melemah 0,3% ke 3,0340 per dollar AS. Adapun, peso Filipina turun 0,3% ke 43,50 per dollar AS, dan yuan tertekan 0,10% ke 6,46695.

The Fed menurunkan proyeksi pertumbuhan di tahun ini menjadi 2,7% hingga 2,9%. Sementara, dari Eropa, Presiden ECB Jean-Claude Trichet menyebut, sinyal risiko untuk stabilitas keuangan di kawasan euro menyala karena krisis utang mengancam terinfeksinya bank di sana.

Saham Asia yang tercermin dalam indeks regional MSCI Asia Pasifik pun mengalami koreksi paling besar dalam sepekan terakhir.

Trader valas dari EON Capital Bhd, D. Sivadass menyebut belum terselesaikannya krisis utang Yunani dan melemahnya outlook ekonomi AS memberatkan sentimen di pasar. "Dalam kondisi kacau, dollar AS menjadi mata uang safe haven," ujarnya.

Henan Putihrai Issues Balanced Mutual Fund

2011-06-14T00:00:00.001-07:00

PT Henan Putihrai Asset Management, a mid-scale investment manager, plans to issue a balanced mutual fund. The company targets a new managed fund of Rp 100 billion to Rp 200 billion from mutual fund, said Ari Citra Asmara, Vice-President of the Business Alliance of PT Henan Putihrai Asset Management. According to Ari, balanced mutual fund has obtained a license from the Capital Market and Financial Institution Supervisory Board (Bapepam-LK). Henan, however, changes its offering prospectus on customers’ minimum investments in the mutual fund that the company need a new approval from the Authority.
"We have previously set the customer’s initial investment at Rp 1 million and an additional investment of Rp 500 thousand. We however wish to change the initial investment to Rp 500 thousand and additional investment to Rp 100 thousand, because the company targets to sell for retail," said Ari.
Henan will invest the managed fund of balanced mutual fund in government and corporate bonds as well as stocks. He, however, did not mention what stocks were included in its instrument.
The company prefers the balanced mutual fund because investors’ interest in said mutual fund is high. According to data from Bapepam-LK, the managed fund of balanced mutual fund has reached Rp 20.17 trillion in April 2011 which grew from Rp 18.4 trillion in January 2011.
The maximum yield in balanced mutual fund also prompts investors although this is below the equity fund. "Henan targets the yield for the balanced mutual fund to be more than the Jakarta Composite Index, which is at a minimum of 30 percent," Ari said.
In 2011, Henan targets a 21.7 percent growth in its managed fund of mutual funds to Rp 5.6 trillion from Rp 4.6 trillion in 2010, due to a rise in prices in underlying assets and fresh customer funds. The company also plans to issue money market mutual funds.
Institutional Investors
PT Batavia Prosperindo Aset Manajemen, a large-scale investment manager, has issued balanced mutual fund for institutional investors. The company targets a managed fund of Rp 300 billion by year-end, said Yulius Manto, Director of Batavia Prosperindo.
The company has booked a managed fund of Rp 200 billion from the initial issuance of this mutual fund in March 2011. The company targets its managed fund to reach Rp 12.5 trillion in 2011 from Rp 9 trillion in 2010.
Yulius said that five percent to 79 percent of the underlying assets of the new mutual fund was invested in bonds and stocks in the coal mining and plantation industries, with a yield of 15 to 20 percent by year-end. However, the underlying assets are subject to change in accordance to market conditions.

Duta Pertiwi Diversifies to Mining Sector

2011-06-13T23:59:00.001-07:00

PT Duta Pertiwi Nusantara Tbk (DPNS), a plywood adhesive producer, will allocate Rp 100 billion-200 billion for business diversification to the mining sector. Siang Hadi Widjadja, President Director of Duta Pertiwi, said that the company will either conduct a rights issue or acquire a loan from financial institutions to fund the plan. Duta Pertiwi, through its subsidiary, PT Intitirta Primasakti, spent Rp 20 billion to acquire a 25 thousand hectare coal mine in Jambi Province. The mine is in its exploration phase. It will begin operations in the next 1.5-2 years with a production of 500 thousand-750 thousand tons per year in its first year of operations.
The company prepared the diversification fund to build supporting infrastructure around the mining location. This is because the Jambi provincial government urged mining companies to establish a consortium to finance infrastructure construction for accessibility.
According to IFT Research Department, the coal sector is attractive to many publicly-listed companies due to its 15 percent net income margin for a full year.
Proof of this is Duta Pertiwi Nusantara, which established a subsidiary to run its coal business. Its operating margin in 2010 was only 8 percent which made it diversify to the lucrative coal business.
The company’s sales in 2010 had a slight increase, which meant that the plywood adhesive industry is still stable. This made the company target a conservative growth of 10 percent. It did not allocate capital expenditures as it will not increase its production capacity.
It is expected that the subsidiary will be able to contribute significantly to the company.
Will Not Expand
According to Hadi, the company will not plan to expand its core business, which includes plywood adhesives such urea formaldehyde (UF-Glue), phenol formaldehyde (PF-Glue), urea melamine (UMF-Glue), and particle board glue (PB-Glue).
Its production in 2010 was 20,293 tons which grew 8 percent from 18,636 tons in 2009. The production was still below its installed capacity of 75 thousand tons per year.
Hadi said that it is too expansive for the company to raise its production although the demand on adhesives is estimated to grow, especially from Japan, in the second semester after the natural disaster.
Duta Pertiwi Nusantara targets a 10 percent growth in revenue in 2011 from Rp 97.2 billion in 2010 and a net income growth of 10 percent from Rp 14.7 billion in 2010.
A dividend payout at Rp 10 per share was recently approved in the company's Annual Shareholders Meeting. This is Rp 3.3 billion of the net income in 2010, with the remaining Rp 11.8 billion included in retained earnings. The dividend payout will be in August 2011.
On Monday’s trading, the company’s share price fell Rp 20 or 3.85 percent to Rp 500.

Aneka Tambang Increases Bauxite Production

2011-06-13T23:58:00.002-07:00

PT Aneka Tambang Tbk (ANTM) will improve its bauxite production to around 700 thousand tons a year starting the end of 2012, from the current 200 thousand tons per year. This aims to meet the requirement of a chemical grade alumina (CGA) factory in Tayan, West Kalimantan.
The factory is expected to operate in 2014 with a 300 thousand ton production capacity, said Alwin Syah Loebis, Chief Director of Aneka Tambang. “Every ton alumina needs two million tons of bauxite. Hence, we are going to increase the production," he said.

Tayan factory is managed by PT Indonesia Chemical Alumina, a joint venture of Aneka Tambang and Showa Denko KK. About 200 thousand ton alumina production will be taken by Showa Denko, while 100 thousand tons are the allocation for Aneka Tambang.

For the production target, the company requires US$ 50 million which is budgeted for the 2012 capital expenditure. “We will use it to add washing machines and heavy equipments," Alwin added.

Aneka Tambang acquired yen-denominated loans amounting to US$ 292.5 million from the Japan Bank for International Corporation and a consortium of Mizuho Corporate Bank Ltd and Sumitomo Trust and Banking Co. Ltd.

The loans will finance 65 percent of Tayan’s CGA project amounting to US$ 450 million. The remaining 35 percent comes from the shareholders' equity; 80 percent (US$ 126 million) from Aneka Tambang; and 20 percent (US$ 31.5 million from Showa Denko.

FKI BUMN Generates Rp 260 Trillion

2011-06-13T23:58:00.000-07:00

Investment Communication Forum (FKI) of State-Owned Enterprises (SOE) is officially launched today. Through synergy between SOEs, investors and investees supported by funds amounting to Rp 260 trillion, the Forum is believed to be able to accelerate national economy.
Mustafa Abubakar, Minister of State-Owned Enterprises, said the Forum will become the trigger and initiator of government projects, mostly in investment and financing in infrastructure development.

“SOE already has a significant role in the national economy. FKI will further strengthen the participation of SOEs through joint programs, joint reviews and joint trainings,” said Mustafa during the opening of the seminar entitled SOE Investment and Investee Synergy to Further Accelerate the National Economy.

Japan Confirms Investments in Indonesia

2011-06-13T23:57:00.000-07:00

Japan recently reconfirmed its commitment to invest US$ 20 billion in the Metropolitan Priority Area (MPA) program. The country is also interested in constructing a smelter in Halmahera worth US$ 2 billion to US$ 3 billion. Hatta Rajasa, Coordinating Minister for Economic Affairs, after a meeting with the Deputy Head of Japanese Chamber of Commerce and Industry, said that the Japanese and Indonesian governments will discuss the matter on July 25 to determine strategic steps to implement the plan.
Hatta said that the commitment was due to the favorable investment climate in Indonesia and the progress in Japan's recovery. Investment from Japan will continue to flow for several years to come.
Japan is still among the top three countries with the largest investment in Indonesia, with a total investment of US$ 345.2 million on 78 projects in the first quarter of 2011. Singapore is the top investor with US$ 1.14 billion on 142 projects, followed by the United States with US$ 359.1 million on 24 projects.
The government directed Japanese investment to the Kalimantan economic cluster. Hatta said that the cluster's industries are appropriate to Japanese need, which includes coal and other sources of energy. Previously, the JGC Group confirmed its investment in Indonesia with projects in the Metropolitan Priority Area.
Yoshihiro Shigehisa, Chairman Emeritus of the JGC Group, said that Japanese business will continue investing in Indonesia, particularly for infrastructure construction in the Metropolitan Priority Area projects. “It is a good project and is attractive to Japanese business,” he said.
JGC Group on Donggi–Senoro LNG Project.
Japan also eyes the water treatment sector and railroad development projects. For the Metropolitan Priority Area project, the Japanese government already committed US$ 20 billion for projects in Greater Jakarta.
For economic corridor accelerated-development projects, the Japanese government will invest US$ 60 billion, particularly for the Sumatra and Java corridors.

Institutional Investors Seek Property Shares

2011-06-13T23:56:00.000-07:00

Institutional investors will seek property shares for their long-term investment. David Agus, Director of Investment Banking at Danareksa Sekuritas, estimates that the unchanged BI Rate will result to an increase in demand for housing, which will enhance the performance of publicly-listed companies. Supporting the growth, the fundamentals influencing the property sector are still stable.
Property shares, however, are not reflective of the positive sentiment as investors have not made the said shares of their preferred choice yet, David revealed.
Two factors currently constraining the property shares movement are the increasing property prices (although the prices are still one of the lowest in the region), and the Indonesian regulation that limits the rights of foreign investors in owning properties in Indonesia.
Metropolitan Land, a property company, plans to list 1.89 billion shares at the Indonesia Stock Exchange (IDX), or 25 percent of paid-up capital, by June 20. The company targets raising Rp 455 billion.
Nikko Securities Indonesia will take 300 billion shares, 270 have been ordered by three private equity firms from Singapore, while the remaining 30 billion shares will be allocated for local institutional investors.
“The said private equity firms are in the pension fund and insurance businesses, where the investment pattern is three to five years,” Widya said.
Danareksa Sekuritas will obtain 1.59 billion shares. Eighty percent will be bought by institutional investors, most of whom are domestically based. The remaining 20 percent will be allocated for domestic retail investors.

IMF Diserang "Hacker"

2011-06-12T03:05:00.001-07:00

Dana Moneter Internasional atau IMF telah menjadi target serangan hacker atau peretas yang cukup canggih. Menurut The New York Times, Sabtu (11/6/2011) waktu setempat, yang mengutip pelabat senior lembaga keuangan internasional itu, serangan tersebut sudah terjadi sejak awal tahun ini."Ini merupakan pelanggaran yang sangat besar," ujar pejabat IMF seraya menambahkan, serangan tersebut jauh terjadi sejak sebelum adanya tuduhan penyerangan seksual oleh mantan bos IMF, Dominique Strauss-Kahn.
Sebagai sebuah lembaga ekonomi, IMF menyimpan sejumlah data ekonomi yang sensitif dari beberapa negara. Namun, Juru Bicara IMF David Hawley mengatakan, saat ini sistem jaringan teknologi informasi telah berfungsi tanpa gangguan. "Saya dapat pastikan bahwa kami tengah menyelidiki peristiwa ini," kata Hawley.
Sebelumnya, The New York Times mengatakan, pegawai IMF mendapat pemberitahuan melalui surat elektronik pada hari Rabu lalu tentang adanya sebuah file penyusup dalam sistem mereka. Namun, IMF tidak memberitahukan peristiwa ini kepada masyarakat luas.
Surat elektronik itu memperingatkan kepada para pegawai IMF dengan kalimat : "file mencurigakan yang mampu melakukan transfer data" telah terdeteksi.
Dalam penyelidikan ini mereka juga menemukan adanya sebuah komputer yang melakukan transfer data dan membuka sejumlah informasi dari sistem yang ada pada IMF.
Akibat kejadian ini, lembaga dunia lain yang terhubung dengan IMF, seperti Bank Dunia, langsung memutus sambungan sistem jaringan mereka yang terhubung dengan IMF.

WEF EA 2011 Inilah Alasan Indonesia Jadi Tuan Rumah

2011-06-12T03:03:00.001-07:00

Indonesia terpilih menjadi tuan rumah dari World Economic Forum on East Asia 2011 karena sejumlah hal. Potensi sumber daya alam dan ekonomi Indonesia menjadi dua hal di antaranya."Pertama adalah karena potensi sumber daya alam Indonesia yang luar biasa. Indonesia adalah negara besar dilihat dari sudut potensi sumber daya alam. Dan juga potensi ekonominya, dengan hampir 240 juta penduduk," ujar Wakil Menteri Pertanian Bayu Krisnamurthi, daily press briefing World Economic Forum on East Asia (WEF EA) 2011 , di Hotel Shangri-La, Jakarta, Minggu (12/6/2011).
Selain itu, sebut dia, kepemimpinan Indonesia diakui oleh tingkat regional dan global. Di mana Indonesia adalah anggota dari G-20, bahkan menjabat sebagai ketua ASEAN untuk tahun ini. "Jadi, apa yang dilakukan Indonesia diharapkan bisa menjadi inspirasi bagi negara-negara lain," tuturnya.
Selain itu, WEF juga memandang banyak inisiatif yang sudah diambil oleh Pemerintah Indonesia, terutama dalam konteks lingkungan hidup dan pangan. "Misalnya, dalam konteks pangan, Indonesia menjadi leader dalam ASEAN Rice Reserve, itu dipandang sebagai sebuah model yang sangat baik," ungkapnya.
Perlu diketahui, Indonesia menjadi tuan rumah World Economic Forum on East Asia untuk pertama kali.
Direktur and Head of Asia of The World Economic Forum Palakurthi Rao pun menyebutkan, pertemuan tahun ini akan difokuskan pada bagaimana para pemimpin di Kawasan Asia Timur bekerja sama mengatasi permasalahan, seperti tekanan inflasi, kelangkaan sumber daya, hingga degradasi lingkungan yang semakin tinggi. Selain itu, pertemuan juga akan membahas keberlangsungan pertumbuhan ekonomi di masa mendatang.

Indofarma Targets 152% Revenue Growth in Q2

2011-06-09T22:59:00.001-07:00

Indofarma's revenues increased by 9.1 percent to Rp 118.87 in the first quarter of 2011 compared to the same period in 2010. JAKARTA– PT Indofarma Tbk (INAF), a pharmaceutical company, targets revenues in the second quarter of 2011 to increase 152 percent to Rp 300 billion (US$ 35.1 million) compared to Rp 118.87 billion in the first quarter of this year. The company based its target on the increased drug consumption in the second quarter of 2011.
Djakfarudin Junus, Director of Indofarma, said that the increase of revenue in the second quarter is supported by the company’s strategy to increase regular sales more than the government bidding sales. Indofarma targets for regular sales and government bidding to each contribute 50 percent to revenues this year. "In 2010, government bidding contributed 60 percent to revenues,” Djakfarudin said, Thursday.
Indofarma will launch high margin products to increase its revenues through regular sales in the second quarter of 2011. “The high margin product that the company relies on is still prescription drugs,” he said.
The company plans to launch 17 to 21 new products in 2011. This is an increase compared to 2010 with the launch of nine products.
Djakfarudin added that increased revenue in the second quarter of 2011 will be supported by the effectiveness of the company’s current marketing channels. The company's production cost will also decrease with the rupiah appreciation against the US dollar. The rupiah appreciation lowers imported raw material prices. “Almost 70 percent of Indofarma's raw materials for drugs are imported from China,” he said.
The company does not plan to increase sales price in the second quarter of 2011 to boost sales growth. Indofarma's revenues increased by 9.1 percent to Rp 118.87 in the first quarter of 2011 compared to the same period in 2010. The increased revenue decreased Indofarma's net loss to Rp 19.98 billion in the first quarter of 2011.
Its net loss in the first quarter of 2011 was caused by the company's increased operational cost. Indofarma's operational cost is Rp 65.25 billion in the first quarter of 2011, up 12.2 percent compared to Rp 58.11 in the same period in 2010. The increased operational cost caused the company's operational loss in the first quarter of 2011 to increase to Rp 23.44 billion from Rp 22.67 billion last year.
Indofarma's share price on Thursday’s trade closing decreased 1.15 percent to Rp 86 compared to the previous trade closing.
PT Kimia Farma Tbk (KAEF), another pharmaceutical producer, targets revenue in the second quarter of 2011 to increase five percent to 10 percent, or Rp 666 billion to Rp 697.81 billion compared to Rp 634.38 billion in the same period last year. The current rupiah appreciation against the US dollar will boost revenue increase and company profitability in the second quarter of 2011.
Syamsul Arifin, Director of Kimia Farma, said that with the current currency exchange rate, company production costs can decrease by one to two percent.

Bank Indonesia to Maintain BI Rate

2011-06-09T22:58:00.002-07:00

Bank Indonesia is expected to maintain the Bank Indonesia (BI) Rate at 6.75 percent at Bank Indonesia's Governors Meeting on Thursday. The inflation in May is relatively low at 0.12 percent, which could have triggered the idea. According to IFT’s poll on twelve economists and analysts, as well as local and foreign securities and banking institutions, low inflation is one of the considerations why the central bank would maintain the BI Rate.

Lim Su Sian, analyst at RBS Global Banking & Markets, said Bank Indonesia will prioritize rupiah appreciation to press inflation. “We don't agree with this approach, but the central bank will push through with it, anyway," he said.

Ma Tieying, also an analyst from DBS Group Research, estimates that Bank Indonesia will start inflating the BI Rate in the second semester. Cumulatively, it will go up 75 basis points by year-end.

The projection is due to several factors. First, harvest time has ended in May. Second, global oil price will likely continue to rise and the government will not change the restriction on consumption of subsidized fuel for private car users, or directly increase fuel price. Third, core inflation will also keep climbing and would possibly reach five percent in the second semester.

There is no reason for Bank Indonesia to raise the BI Rate since the inflation is still low, said Juniman, an economist at Bank Internasional Indonesia Tbk. The central bank can even retain it until the end of the year if the government does not increase the subsidized fuel oil price.

Core Inflation Goes Up
Chua Hak Bin, an analyst from Bank of America Merrill Lynch, also sees that the BI rate will not change as headline inflation fell in May (year-on-year) from 6.2 percent to 6 percent, but there are risks that core inflation will rise to five percent.

Bank Indonesia will still rely on the strengthening of rupiah to curb the inflation rate, although it will not be as strong as a month earlier. Since the start of the year, rupiah has been appreciating to about five percent against U.S dollar. "We revised the inflation forecast from 6.8 percent to 6.1 percent this year,” he said.

At the same time, Johanna Chua, an analyst of Citi Asia Economics, estimated that the central bank will only raise the BI Rate once, in the last quarter of the year. She also said that rupiah appreciation does not have a significant impact on export competitiveness. Within the next few months, rupiah is projected to be traded in the range of 8,400-8,500 per U.S dollar.

Dinamika Usaha, HD Capital Develop Financial Consultancy

2011-06-09T22:58:00.000-07:00

Securities companies are now developing their financial consultancy business to increase their earnings. JAKARTA – Securities companies are now developing their financial consultancy business to increase their earnings. According to several officials of securities companies, the underwriting business has the potential to provide them maximum profit.
Kris S. Widjojo, Director of PT Dinamika Usaha Jaya Securities, said that for two years now, the company has been developing its financial consultancy business. According to Kris, the business has a huge potential to improve the company’s performance.”Revenues from financial consultancy is almost equal to fees obtained from the underwriting business,” he said.
Kris added that the company is currently providing financial advice to two companies conducting corporate action such as debt restructuring, acquisition, funding for working capital and private placement. However, Kris declined to mention the names of the companies. The contract value from the two companies is around Rp 1 trillion (US$ 117 million).
Based on the 2011 first quarter financial report, Dinamika Usaha booked a commission revenue of Rp 983.2 million and an underwriting fee of Rp 17 million. Despite the revenue from the business, it posted a total loss of Rp 18.5 billion due to loss from stock sales amounting to Rp 19.52 billion.
Besides developing its financial consultancy, Kris expects that the acquisition of 75 of its shares by PT Bank Central Asia Tbk (BBCA) will push through this year. This will speed up the development of the business.
Another securities company developing its financial consultancy business is PT HD Capital Tbk (HADE). Anthony Kristanto, President Director of HD Capital, said that even if 90 percent of the company’s revenues came from its brokerage business, the contribution of its financial consultancy this year is bigger compared to last year.
“Last year, we had three clients. We have three again this year. However, the transaction value is bigger, at more than Rp 1 trillion. We will assist them in conducting an acquisition and funding for working capital,” Anthony said.
Based on the high potential of the business, HD Capital targets to achieve a revenue of Rp 23.1 billion. HD Capital also seeks Rp 1.26 billion in net profits. In 2010, the revenue of the company reached Rp 22.81 billion, with a net profit of Rp 4.07 billion by the end of last year. “We projected a net profit drop because our customer’s average daily transaction fell. Customers changed their transaction pattern from short term to long term,” Anthony added.
In 2012, Antony projects the revenue of HD Capital to stand at Rp 27.12 billion and net profits at Rp 2.95 billion. The revenue and net profit of the company are projected to rise again by 2013 to Rp 33.42 billion and Rp 4.10 billion, respectively. On Thursday’s trading, HD Capital’s price was unchanged at Rp 50 a share.

Ford Increases Fiesta Supply, Honda Jazz Production Normal in July

2011-06-09T22:57:00.000-07:00

Ford has proposed Ford Southeast Asia to increase Fiesta supply to Indonesia.
JAKARTA - PT Ford Motor Indonesia targets additional supply of ‘Fiesta’ car brand from Thailand to increase by 40 percent to 700 units in June 2011 due to a rise in sales. Gumgum Prijadi, Director of Marketing of Ford Indonesia, said that Fiesta sales since its launching in November 2010 to May 2011 number 3,674 units.
Fiesta sales show an increasing trend based on Vehicle Order Form from consumers monthly from 140 units per week in April to 180 units per week in May 2011. Demand for Fiesta is 720 units per month, growing 28 percent from 560 units per month in April 2011.
Bagus Susanto, Director of Sales and Marketing of Ford Indonesia, said that Ford has proposed Ford Southeast Asia to increase Fiesta supply to Indonesia. Fiesta is manufactured in Thailand and shipped to Indonesia completely built-up (CBU).
“This month, we ask for additional supply of around 700 units because the demand grows higher in comparison to demand early this year,” he said, Thursday (9/6).
According to Bagus, Fiesta supply is around 400 units early this year and may increase to around 500 units next month. The average wholesale production in January to May 2011 is 500 units.
Fiesta retail sales show a growing trend that grew 7.3 percent in May to 631 units from 588 units in April. Fiesta sales in May are its highest since its launch.
Ford’s retail sales in May are more than 1,500 units that grow 230 percent from the sales in May last year.
Another proprietary sole agent, PT Honda Prospect Motor (HPM), posts Honda Jazz wholesales of more than 2,600 units due to improved component supply, despite supply not completely normal. In April 2011, Honda Jazz did not generate sales due component supply problem.
Jazz sales contribute 72 percent of the company’s total sales of more than 3,000 units in May that increased by 78 percent from more than the 2,000 units in April.
Jonfis Fandy, Director of Marketing and After Sale Services of Honda Prospect, said that new type of Honda Jazz was launched last month, prompting a rise in sales. The company ensures that Jazz supply of 2,000 units per month. Honda estimated that its assembly plant in Karawang, West Java will be normally operational in July 2011.

”Currently, our production is in the recovery phase, so we are still producing below demand,” he said.

BI Urges BPDs to Merge Sharia Business Units

2011-06-09T22:56:00.001-07:00

Bank Syariah Mandiri distributed financing for franchise in the micro, small, and medium business sector.
JAKARTA – Bank Indonesia encourages the merger of sharia business units owned by regional development bank (BPD) and establish commercial sharia banks, official of the central bank said. The BPDs has been having problems in establishing commercial sharia banks due to problems in raising the capital.
Mulya Siregar, Director of Sharia Banking Directorate of Bank Indonesia, said currently there are several BPDs which already have sharia business units but are unable to upgrade to sharia commercial banks. “BPDs find it difficult to meet the capital requirement of Bank Indonesia of Rp 500 billion (US$ 58.5 million),” Mulya said on Thursday.
Several BPDs are located in just one area, such as BPD of North Sumatera, Jambi, Lampung, and South Sumatera. The merger of the sharia business units would prevent closure by Bank Indonesia.
The Law no 21/2008 regarding sharia banking says Bank Indonesia requires conventional banks with sharia businesses to spin off its subsidiary and establish a new bank within 15 years after the implementation of the law. If the bank fails to do so, the permit for the business units will be revoked.
Winny Erwindia, Chairperson of Regional Development Bank Association, said the members of the association have been thinking to merge all the sharia business units within the BPD.
Muljanto, Secretary General, said BPD is still faced with great challenge. Each bank should obtain approval from its shareholder—the regional government. But the regional government has certain a pride for their BPD, making them reluctant to merge with other banks.
Bambang Sutrisno, Secretary General of Indonesian Sharia Bank Association, said the association is ready to support the efforts of the central bank to accelerate the growth of sharia banks in Indonesia. He said the central bank is aware about the problems faced by the banks to spin off their sharia business units. Other than the minimum capital requirement of Rp 500 billion, the banking sector is also faced with issues on human resource and training.
Asset Growth
Accrding to Bank Indonesia, the banking sector’s assets as of May 2011 rose around 46 percent to Rp 104 trillion from Rp 71.13 trillion year-on-year (YOY). The asset growth is in line with the financing distribution growth of the sharia banking sector.
According to Mulia, the asset growth is largely from higher financing and third party fund. Lending went up by around 38 percent, while third party funds grew 35 percent. The sharia asset growth is in accordance with the Bank Indonesia’s target of 50 percent in 2011.”In the first semester of 2011, the financing growth has been sluggish, however, we are confident that by second semester, it will grow even higher,” Mulya added.
Currently, Bank Indonesia is trying to increase the partnership among sharia businesses by means of sharia financing. Mulya said there are five sharia banks which distributed financing for franchise in the micro, small, and medium business sector. The five banks are Bank Syariah Mandiri, Bank Muamalat, Bank BNI Syariah, BRI Syariah, and Bank Danamon Syariah.
The total loans distributed for franchises stood at around Rp 80 billion. Mulya has a target this year for additional Rp 80 billion financing for franchise business and more sharia banks to participate.

Govt Officials Prohibited to Buy IPO Shares of SOEs

2011-06-09T22:55:00.001-07:00

The Ministry of SOE will establish a code of conduct which prohibits the officials of SOE Ministry to buy SOE IPO shares, aiming to avoid any conflict of interest. JAKARTA The government will put forward a corporate approach in the initial public offering (IPO) process of State Owned Enterprises (SOE). The Ministry of SOE will establish a code of conduct which prohibits the officials of SOE Ministry to buy SOE IPO shares, aiming to avoid any conflict of interest.
The possibility of conflict among the officials is quite high, said Mustafa Abubakar, Minister of SOE. According to Law No. 19/2003, a decision with regard to timing, sizing and pricing of SOE IPO is specified by the Minister of SOE based on a recommendation of the underwriters as well as opinion and approval from SOE management conducting the IPO.

One problem which could arise is the political and bureaucratic intervention in the decision of PT Krakatau Steel Tbk (KRAS) and PT Garuda Indonesia Tbk (GIAA)’s IPO.

In terms of business considerations, if the IPO timing is not right, the SOE can postpone the process as done by private companies. However, the political and bureaucratic processes make it impossible to do so.

In 2011, there is only one SOE which went public, Garuda Indonesia. Previously, the Ministry had presented 10 SOEs planning for IPO. However, with the market condition, the Ministry had to review the IPO plan and has not finalized the number of the relevant companies.

Financial Supervisory Agency Urged to Expand Authority

2011-06-07T22:21:00.000-07:00

The Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) must have expanded authority to improve capital market monitoring. (IFT/DINUL MUBAROK)
JAKARTA (IFT) – The Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) must have expanded authority to improve capital market monitoring. This will provide a sense of security for investors and minimize crime and fraudulent activities.

"This should be positively responded to in order to promote national capital market industries," said Isakayoga, Executive Director of Indonesian Publicly-Listed Companies Association.

Marciano Herman, Chief Director of Danareksa Securities, supports the idea as the Supervisory Agency should have a similar authority with Bank Indonesia as the banking industry regulator. He argued that the capital market industry is the part of the financial industry with the same characteristics as the banking industry.

Should the authority be regulated in the Law, Marciano futhered, the Supervisory Agency can take direct action on allegations of scams and other crimes in financial transactions. If it is done by a company under the Agency's supervision, it will be put under a statutory management.

“Therefore, the Agency must have strong internal control to prevent any abuse of power,” he added.

The regulator plans to include points with regard to the authority extension into the revised draft of Capital Market Law which will be discussed by the House of Representatives.

Among the points for discussion is the Agency’s power to open bank secrecy on personal files with any capital market infringement accusation. Another point is the formation of statutory management to handle securities companies, investment managers, pension fund, insurance and financing companies alleged to have committed fraud and embezzlement of customer funds

BPK Claims Saving Rp 426 B State Revenues from Energy

2011-06-07T22:19:00.001-07:00

In 2011 and 2010, BPK only audited coal-mining companies. But next year, it will audit mineral companies such as PT Freeport Indonesia and PT Newmont Nusa Tenggara. (BLOOMBERG/MATTHEW STAVER)

JAKARTA (IFT) - Badan Pemeriksa Keuangan (BPK), Indonesia’s Supreme Audit Board, claimed to have saved Rp 426 billion in state revenues from energy and mineral resources. The claim was made in the financial statements of the Ministry of Energy and Mineral Resources for Fiscal Year 2010. The saved revenues were from the examination sample of 400 mining concessions and 20 coal contracts of work.

Ali Masykur Musa, Member of IV BPK, said that potential state revenues that could be lost are in the form of royalties, non-tax state income and revenue-sharing funds. However, Ali was reluctant to mention the details of each potential.

According to Ali, in the fiscal year of 2011, BPK will perform similar checks. Companies to be inspected could be the same as last year, particularly because of the increasing production and taxes.

In 2011 and 2010, BPK only audited coal-mining companies. But next year, it will audit mineral companies such as PT Freeport Indonesia and PT Newmont Nusa Tenggara.

The total payment made by Freeport Indonesia in 2010 was US$ 1.9 billion, consisting of corporate income taxes (US$ 1.26 billion); Employees Income Tax, Local Tax and other taxes (US$ 308 million); royalties (US$ 185 million), and government dividends (US$ 169 million). The total financial liabilities is in accordance with the provisions referring to the 1991 Contract of Work Freeport Indonesia has paid to the Indonesian Government from 1992 to December 2010 at US$ 11.4 billion.

Arif Senjaya, Acting Head Auditor IV B of BPK, said that his department will re-audit state revenues, but not in the second semester—expecting it to be completed by December 2011. Non-tax state revenues include royalties and fees.

According to Supriatna Suhala, Executive Director of Indonesian Coal Mines Association, the problem of delays and lack of taxes or royalties payment by mining companies—both included in the work contracts of a mining companies or coal concessions—is that it does not fall into the category of aberration.

The reason, he said, is because a late payment is different from no payment at all; and could be due to incorrect calculation or bookkeeping. According to Supriatna, an audit by BPK is required to align miscalculations or payment delays.

Opening Bell 08/06: Global Market Sentiment Still Undermining JCI

2011-06-07T22:18:00.001-07:00

Majority of European markets on Tuesday (07/06) dropped, led by retail stocks. Benchmark Stoxx Europe 600 index fell 0.1% to 271 basis points. The German government yesterday published manufacturing order data for May, which increased by 2.8 percent after falling by 2.7 percent in April. The rise was supported by an increase in demand for capital goods.
Shares on Wall Street fell for the fifth day after The Fed Governor, Bernanke, did not give any indication of new stimulus to prop up the US economy. This month, The Fed will finalize the purchase of bonds worth US$ 600 billion and at the same time consider pulling back stimulus.
The Standard & Poor’s 500 fell 0.1 percent to 1,284 points and Dow Jones index dropped 0.2 percent to 12,070 points.
The Japanese bourse opened higher this morning (08/06), triggered by uncertainty of US economy. The Nikkei 225 of Japan fell less than 0.1 percent to 9.431 points.
The weakening of majority of global bourse as a result of concern over slowing down of world economy is likely to influence the direction of the Jakarta Composite Index (JCI) today.
The simulation undertaken by IFT shows that in 2011, the JCI has a strong correlation with the Dow Jones index in the US. The coefficient correlation of JCI and Dow is about 0.65 points, and when Dow rose 1 point, at the same time the JCI increased by 0.65 points.
The price of crude oil increased for the second day by 0.7 percent to US$ 99.79 per barrel and could stimulate interest in energy sector. In addition, anticipation of the BI Rate announcement can provide support to the JCI.

Government Imports Gas for Industry

2011-06-07T22:17:00.002-07:00

The government has decided to import gas to meet the national industry demand. MS Hidayat, the Industry Minister, said that this will be done due to the urgent demand from industry, while gas supply for the domestic market from PT Perusahaan Gas Negara Tbk (PGAS) cannot meet the demand. The government has offered the project to several gas importers. Ibrahim Risyad, who will import gas from Qatar, has expressed interest.
“I already asked for consideration from the Economic Coordinating Minister. The Ministry is now calculating the plan,” he said in Jakarta, Tuesday.
Hidayat said that the underlying problem is not gas supply, as a portion of national gas is exported to several countries. The main problem is limited infrastructure for gas distribution.
He said that the Energy and Mineral Resources Ministry coordinated with the Industry Ministry to invite investors to procure mobile floating gas terminals to support gas distribution. The terminal will reach consumers and industrial players that need gas.
Evita Herawati Legowo, Director General of Oil and Gas from the Energy and Mineral Resources Ministry, said that three input and regasification liquefied natural gas terminals will be operational by next year. These can solve the gas deficit issue currently experienced by PT PLN and the industry.
The three terminals are located in Jakarta Bay, Belawan in North Sumatera, and Arun in Nangroe Aceh Darussalam. The first to go online, in January 2012, will be the Jakarta Bay terminal.
The IFT Research Department said that the decision is a temporary solution. Actually, domestic demand can be met if export volume is reduced, but it will be against export contracts.
Indonesia is the largest gas producer in the Asia Pacific, with the largest gas reserves in the region. It is a gas exporter country, but it cannot meet domestic demand.
Industry will obtain gas at a higher cost if it uses imported gas, increasing production cost and selling price, and reducing competitiveness.
Memorandum of Understanding
Industry demand for gas supply certainty this year and upcoming years has not been given. A memorandum of understanding between industry players in the Gas User Industry Forum, as consumer, and Perusahaan Gas Negara as distributor, is difficult to draft, although signing was scheduled last April.
Ahmad Safiun, Head of the Forum, said that national industry will not be competitive as long as gas supply cannot be completely met. National industry competitiveness is threatened by the launch of the ASEAN economic community in 2015.
Panggah Susanto, Director General of the Manufacturing Industry Base of the Industry Ministry, said that the Ministry already met with the Forum to discuss gas supply. They are working on the memorandum of understanding, for long-term gas supply contract.

Jakarta Hosts World Economic Forum on Food Security

2011-06-07T22:17:00.000-07:00

The 20^th World Economic Forum will be held in Jakarta on June 12-13, to formulate important resolutions on world food resiliency. The forum on East Asia will discuss food security following several global food issues due to global warming and high inflation.
Gusmardi Bustami, Director General of International Trade from the Trade Ministry, said on Tuesday that Indonesia will propose several solutions, as it did in the 18^th ASEAN Summit.
The World Economic Forum will also discuss competitive connectivity and the Doha Round which has not reached an agreement. “Indonesia will support cooperation in the Asia Pacific on efforts to combat challenges in terms of access to energy resources, environmental sustainability, food resiliency and employment,” said Gusmardi.
Susilo Bambang Yudhoyono, the President of Indonesia, in his address in the 18^th ASEAN Summit, said that food resiliency is a serious challenge for Southeast Asia. The Summit agreed to implement the ASEAN Integrated Food Security Framework, which includes ASEAN rice stock, food research and development and food sector investment.
Attract Investments
The World Economic Forum will be attended by 620 global chief executive officers, some of which may decide to invest in Indonesia. Around 1,000 companies have already signed up for the forum. Transactions are expected to reach between US$ 100 million and US$ 5 billion.
Mari Elka Pangestu, the Trade Minister, said that national and foreign decision-makers in the forum will open opportunities for the government and for the domestic industry level. “For industry, cooperation can be in the form of direct investments, strategic alliances and market opportunities for Indonesian companies. They will decide whether Indonesia is sufficiently attractive for their investment portfolio," said Mari.
Shinta Widjaja Kamdani, Managing Director of Sintesa Group, said that the holding company of Sintesa Group, PT Widjajatunggal Sejahtera, already approved an investment cooperation worth € 350 million with a German company for expansion in the consumer sector in the next three years. The cooperation will be officiated in the Forum.
"The consumer sector contributed 40 percent of Sintesa Group's total revenues," said Shinta.

Government Asks for Fraud Data

2011-06-07T22:16:00.001-07:00

The Government requires data on fund misuse of road projects which involved the World Bank. An official said the government will welcome the data from the World Bank. Any Ratnawaty, Deputy Finance Minister, said on Tuesday that Indonesia does not want to be called a corrupt country. She said that if fund misuse really occurred, then the government will improve the projects.
The World Bank report titled “Curbing Fraud, Corruption and Collusion in the Roads Sector,” published last week, included Indonesia as a country where frauds are detected in road procurement and maintenance projects which include funds from the Agency.
The report, a result of investigation by a World Bank arm called the Integrity Vice Presidency, stated that from 540 road projects in various countries during 2000-2010 of which World Bank funds are involved, about a quarter was suspected to fraud, corruption and collusion.
In Indonesia, fraud and collusion were suspected on 22 road rehabilitation contracts in Sumatra in the 1997-2005 period worth US$ 56,025 to US$ 614,415; one road repair contract in Sulawesi in 1997-2002 worth US$ 18,300; and one design engineering supervision contract in Sulawesi in 1997-2002 worth US$ 320,000.
Bastary Panjdi Indra, Director of Public Private Partnership from the National Development Planning Ministry, said that goods and services procurement processes were performed according to prevailing rules.
“Currently we see prudence, which drags several projects,” he said. He added that fraud, corruption, collusion and nepotism are outside of the Ministry supervision, as they occurred in the implementation stage.
Djoko Kirmanto, the Public Works Minister, said that extensive e-procurement process for various infrastructure work will reduce fraud. He added that under the Presidential Decree No. 54/2010, all ministries/agencies and regional governments are required to use e-procurement.
Past
Minister Djoko said that in the past, including the 1997-2005 period, there was no e-procurement, thus bidding process was conducted manually, increasing the possibility for fraud.
Kurnadi Gularso, Corporate Secretary of PT Adhi Karya Tbk (ADHI) said the current bidding process has significantly improved.

Bukit Uluwatu Plans Villa Construction in Bintan

2011-06-07T22:15:00.000-07:00

Bukit Uluwatu is building 50 villa and residential hotel spanning an area of 14 hectares at Lagoi Bay, Bintan. (IST)
JAKARTA (IFT) – PT Bukit Uluwatu Villa Tbk (BUVA) allocated Rp 106.96 billion (US$ 12.51 million) or 48 percent of its initial public offering (IPO) proceeds of Rp 222.85 billion to build several new villas in Bintan, Riau Islands. This is part of the revision of the utilization of proceeds presented to shareholders.
The 50 unit villa and residential hotel will span an area of 14 hectares at Lagoi Bay, Bintan, constructed through the new subsidiary, PT Bukit Lagoi, said John Daniel Rasjad, Bukit Uluwatu’s Finance Director.

“The project is expected to be completed by 2012,” he added. Moreover, the management also allotted 52 percent of the proceeds for settlement of bank loans, John said.

Initially, according to the IPO prospectus which the company issued on July 2, 2010, there were four plans for the utilization of proceeds . First, 12 percent or Rp 26.74 billion will be used to construct 12 new villas in Alila Ubud in 2011. Second, 48 percent will be used to buy all the shares of PT Buana Megawisatama and PT Verizon, which will then be merged into PT Bukit Lagoi.

Third, 32 percent or Rp 71.31 billion will be used to increase capital participation in its subsidiary, PT Sitaro Mitra Abadi. The latter will use it to purchase land in Tanjung Tarabitan from PT Torowitan Sulawesi Development for the Alila Manado villa development. Fourth, eight percent or Rp 17.82 billion will be used as working capital.

Bank Loans

According to the IFT Research Department, if Bukit Uluwatu will still allot eight percent of the proceeds as working capital, funds for bank loan settlement will be 44 percent or Rp 98.05 billion. Thus, the remaining debt would be Rp 237.36 billion from the Rp 335.42 debt position in the first quarter of 2011. The settlement would reduce the company's debt ratio from 0.46 times to 0.4 times. Its debt to equity ratio would also fall to 0.66 times from 0.86 times

Govt Renegotiates Mining Contracts to Raise Royalties

2011-06-07T22:14:00.000-07:00

Government plans to renegotiate contracts with coal producers to increase its non-tax revenue from the mining sector. (IFT/DINUL MUBAROK) JAKARTA (IFT) – Darwin Zahedy, the Minister of Energy and Mineral Resources, said that the government plans to renegotiate contracts with coal producers to increase its non-tax revenue from the mining sector.
The government’s non-tax revenue from the mining sector has been increasing since 2008, from Rp 12 trillion to Rp 15.5 trillion in 2009, and Rp 18.29 trillion in 2010.
Darwin said that the government will communicate with mining companies to show that it recognizes the previous contracts. He, however, declined to disclose how much the royalty increase was, as he claims it is too technical.
Points in the contracts for renegotiation concern the period, area and royalty. Thamrin Sihite, Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources, said that the royalties obtained from mining companies is small, however, at the time the contracts were signed, the government needed foreign investments.
The royalty coal producers must pay equals 13.5 percent while mineral producers must pay 1-1.5 percent. For countries with a high bargaining position, like the US, royalties could reach 20 percent.
Supriatna Suhala, Executive Director of the Indonesian Coal Mining Association, is against the plan as he foresees that it will disrupt Indonesia’s investment climate.
The government, Supriatna explained, does not only receive royalties from mining companies. Mining companies also contribute in the form of dividends and taxes, among others.