Local coffee exporters ask govt to impose quota scheme<\/p>\n
JAKARTA (JP): Local coffee exporters called on the government
\nto introduce a quota scheme to limit the market share of foreign
\nexporters operating in the country.<\/p>\n
Chairman of the Association of Indonesian Coffee Exporters
\n(AEKI) Hassan Widjaja said a quota for coffee exports was crucial
\nto enable local exporters to compete with foreign coffee traders.<\/p>\n
\"We desperately need a quota system to protect local coffee
\nexporters as about 70 percent of the country's current coffee
\nexports are controlled by foreign traders,\" Hassan said in a
\nhearing with House of Representatives Commission V for industry
\nand trade affairs.<\/p>\n
Hassan said that without a policy, local exporters would be
\nsidelined and in the end the country's coffee exports would be
\nfully controlled by foreigners.<\/p>\n
However, he could not yet provide specific details, saying the
\nassociation was still drafting the criteria and guidelines for
\nthe proposed scheme.<\/p>\n
Hassan said that foreign coffee traders had strong capital and
\na network, but most had no interest in investing in the country
\nto help create jobs.<\/p>\n
Coffee exports from here stood at 310 million tons last year.<\/p>\n
Hassan said the association had predicted the country's
\nexports would fall short of the targeted 320,000 tons this year.<\/p>\n
\"Our exports will plunge by 30 percent to 240,000 tons this
\nyear, mainly due to a fall in the country's production,\" Hassan
\nsaid.<\/p>\n
He attributed the plunge in coffee output to the growers'
\nlack of proper cultivation of trees following the continued
\npressure on coffee prices.<\/p>\n
Many coffee growers have suffered losses due to low
\ninternational prices for the commodity, which in turn has forced
\nthem not to cultivate their trees properly.<\/p>\n
\"They are no longer able to afford a higher cost of
\nproduction,\" he said.<\/p>\n
He said coffee prices were hovering at about Rp 2,000 (22 U.S.
\ncents) to Rp 2,500 (27 U.S. cents) per kilogram, while the cost
\nof production ranges between Rp 3,000 and Rp 3,500 per kilogram.<\/p>\n
Coffee prices have been under protracted pressure amid an
\noversupply in the market following higher coffee supplies coming
\nfrom the world's largest coffee-producing countries, Brazil and
\nVietnam.<\/p>\n
2. Minyak (1x28)<\/p>\n
Legislators differ over fuel hike plan<\/p>\n
House members' opinions on fuel price increases vary<\/p>\n
JAKARTA (JP): Several legislators of the three largest
\nfactions of the House of Representatives gave mixed reactions on
\nMonday to the government's proposal to raise fuel prices by 30
\npercent next year.<\/p>\n
Husni Thamrin of the second largest faction, Golkar, said the
\ngovernment should delay the plan given the hardships people
\nsuffer due to the prolonged economic crisis.<\/p>\n
\"I personally don't agree with the plan to hike fuel prices
\nnext year given the people's financial condition. It will add to
\nthe burdens of the poor,\" Husni told the Jakarta Post.<\/p>\n
Another Golkar legislator, Paskah Suzetta, who is also deputy
\nchief of House Commission IX, which will debate the government's
\ndraft budget, proposed fuel price increases be postponed until
\n2003 for the same reason.<\/p>\n
President Megawati Soekarnoputri unveiled her 2002 state
\nbudget proposal -- her first budget proposal since she assumed
\npower in July -- which includes a plan to raise fuel prices by 30
\npercent and electricity rates by between 3 percent and 4 percent
\nevery quarter.<\/p>\n
Megawati said the government would reduce the fuel subsidy to
\nRp 32.29 trillion (US$3.5 billion) in 2002 from the Rp 53.77
\ntrillion allocated for the current fiscal year to help plug the
\nbudget deficit.<\/p>\n
Despite the fuel and electricity price increases, the 2002
\nbudget proposed by the government will still have a deficit of Rp
\n45.3 trillion.<\/p>\n
The 2002 budget also set the country's oil and gas revenue at
\nRp 66.1 trillion against the Rp 100.95 trillion target in the
\ncurrent budget, and the average oil price at $22 per barrel as
\nagainst $24 under the current budget<\/p>\n
The plan to raise fuel prices came at the request of the
\nInternational Monetary Fund (IMF), which has argued that the fuel
\nsubsidy was mostly enjoyed by factories, the wealthy and
\nsmugglers, rather than the poor.<\/p>\n
Zulfan Lindan of the Indonesian Democratic Party of Struggle
\n(PDI Perjuangan) said the fuel price increase was understandable
\nas the government had no choice in its attempt to plug the budget
\ndeficit.<\/p>\n
\"But since the House and the government have yet to debate the
\nplan and the budget proposal, I can't for now say whether to
\nendorse the plan or not,\" Zulfan said.<\/p>\n
Syamsul Balda from the Reform faction, the third largest, also
\ncalled on the government to delay increasing fuel prices, warning
\nthat the move could spark social unrest.<\/p>\n
\"I agree with the government's plan to cut the fuel subsidy,
\nbut it should wait for the right the time to do so,\" Syamsul told
\nthe Post, adding it was only his personal view.<\/p>\n
He charged that about 70 percent of the fuel subsidy had been
\nso far enjoyed by the business sector, with only 10 percent going
\nto the poor.<\/p>\n
3. Intel (2x16)<\/p>\n
Taiwan's VIA files
\nsuit against Intel<\/p>\n
Taiwan's VIA files suit against Intel<\/p>\n
TAIPEI (Reuters): Taiwan microchip designer VIA Technologies
\nfiled a lawsuit against Intel Corp on Monday, after the U.S.
\nsemiconductor giant charged VIA with patent infringement last
\nweek.<\/p>\n
Analysts say the countersuit, the latest salvo in a legal
\nbattle between the two companies that dates back years, may
\ntrigger additional legal action from Intel, the world's largest
\nsemiconductor firm, while legal problems would hurt VIA's ability
\nto attract customers.<\/p>\n
\"I think the lawsuit will last for a long time and will have a
\nnegative impact on VIA's business development,\" said John Leong,
\na semiconductor analyst at Deutsche Bank based in Taipei.<\/p>\n
The litigation knocked the Taiwan firm's shares down the seven
\npercent daily trading limit to T$101 on Monday, far
\nunderperforming a 0.3 percent drop in the benchmark TAIEX index.<\/p>\n
VIA said Intel's top-of-the-line Pentium 4 processor, and the
\n845 chipset that supports it, infringe on company patents.<\/p>\n
\"Not only Intel has chipset and CPU (central processing unit)
\npatents. We have a lot of patents also,\" VIA Vice President Ted
\nLee told a news conference.<\/p>\n
VIA also accused Intel of anti-competitive behavior, related
\nto allegations that the U.S. firm has threatened Taiwan's
\nmotherboard makers with legal action if they use VIA's products.<\/p>\n
VIA's riposte comes after Intel filed a complaint in Delaware
\non Friday accusing VIA, the world's second-largest chipset
\ncompany behind Intel, of violating five Intel patents with its
\nP4X266 chipset.<\/p>\n
Chipsets link the microprocessor -- the primary computing
\nengine of a personal computer -- with other semiconductors to
\ncommunicate with the rest of the PC. Makers of motherboards,
\nwhich function as the chassis of any computer system, incorporate
\nchipsets into their designs.<\/p>\n
Taiwan firms make over 60 percent of the world's motherboards.<\/p>\n
\"From what we understand, tier one (motherboard makers) are
\npredominately driven by Intel. It is a slow market, and when you
\nhave uncertainty, the last thing you need is a lawsuit to
\ninterrupt production,\" said Leong.<\/p>\n
Intel's Asia-Pacific spokeswoman Josie Taylor said the company
\ncould not comment on VIA's lawsuit as it has not been served with
\nany documents.<\/p>\n
4. Tour (2x12)<\/p>\n
EATOF vows to
\nboost tourism<\/p>\n
YOGYAKARTA (JP): Eight provinces out of nine East Asia Inter-
\nRegional Tourism Forum (EATOF) founding members issued a joint
\ndeclaration here on Monday stating their intention to empower
\nEast Asian tourism by strengthening multilateral relations among
\nEATOF members.<\/p>\n
In their joint declaration, the provinces of Gangwon (Korea),
\nCebu (Philippines), Tuv Aimag (Mongolia), Chiang Mai (Thailand),
\nTottori Prefecture (Japan), Jilin (China), Yogyakarta (Indonesia)
\nand Sarawak (Malaysia) agreed to hold a regular annual meeting to
\ndeepen relations among them.<\/p>\n
Another founding province, Primorsky (Russia), could not send
\nits delegation due to internal matters.<\/p>\n
\"We encourage those member provinces that were unable to
\nparticipate in this year's EATOF General Assembly to make every
\neffort to attend future General Assemblies,\" the statement said.<\/p>\n
The statement, which was read out by Yogyakarta governor
\nSultan Hamengkubuwono X, mentioned that EATOF's member provinces
\nwould work together throughout the year to encourage trade,
\ntourism and investment among the group.<\/p>\n
\"In addition, local authorities shall seek ways to support and
\npromote exchange programs among universities or private tourism
\nsectors,\" the sultan said.<\/p>\n
He said the first stage of the project could be implemented by
\nestablishing bilateral relationships among institutions.<\/p>\n
\"It can be developed in the form of organizing a consortium
\namong universities or private tourism sectors,\" he added.<\/p>\n
The participants also agreed to establish an EATOF promotion
\nbooth that will be operate at international travel marts wherever
\npossible to promote joint marketing of the province members.<\/p>\n
The conference was attended by some 60 participants and 200
\nother tourism stakeholders. Around 70 institutions, including
\ngovernment offices and tourism stakeholders, participated in the
\nEATOF travel mart held at the Hyatt Regency Yogyakarta.<\/p>\n
EATOF was established in a meeting hosted by Korea's Gangwon
\nprovince in September 2000. The nine participating provinces were
\nrecognized as EATOF founders. (23)`<\/p>\n
5. Rice (2x18)<\/p>\n
India's rice support
\nnot to impact exports<\/p>\n
NEW DELHI (Reuters): A decision by India to raise the support
\nprice for rice paddy will only add to bulging foodgrain stocks
\nand not help exports, analysts and traders said on Monday.<\/p>\n
They said the move announced last week will firm up domestic
\nprices.<\/p>\n
\"There would be hardly any impact as the export prices are
\ncurrently fixed by the government and not determined by the
\nmarket forces,\" said a Hyderabad-based grains trader.<\/p>\n
India has a stockpile of around 20 million tons of rice.<\/p>\n
Its rice exports are likely to be around one million tons in
\nthe year to March 2002 but well below the government's target of
\nthree million tons mainly because of higher domestic prices and
\nlower demand from importing countries.<\/p>\n
The government on Friday raised the minimum support prices
\n(MSP) for rice paddy and oilseeds for the winter harvest crop.<\/p>\n
Agriculture Minister Ajit Singh told reporters the MSP, the
\nprice at which the government procures the grains from farmers,
\nfor rice paddy of common variety had been raised to 530 rupees
\nper quintal (100 kg) from 510 rupees set in the previous season.<\/p>\n
The crops are sown around June and harvested from October.<\/p>\n
Analysts said the government had raised the procurement price
\nto please farmers and with an eye on coming elections in the
\nrice-growing states of Uttar Pradesh and Punjab.<\/p>\n
\"The government has increased the MSP for political reasons,\"
\nsaid a Bombay-based commodity analyst. \"A higher MSP will lead to
\nhigher open market prices and more procurement adding to the
\nsubsidy burden.\"<\/p>\n
He said this would mean that rice stocks will bulge to 30
\nmillion tons at the end of the calendar year.<\/p>\n
Indian rice exports, which remained dull until the government
\nset a lower export price in May, consist mostly of five percent
\nsortex parboiled variety and little raw rice, traders said.<\/p>\n
The state-run Food Corporation of India (FCI) is offering
\nparboiled rice to exporters at 6,000 rupees per ton ex-granary
\nand raw rice at 5,650 rupees a ton.<\/p>\n
A Bombay-based grains trader said there would be no immediate
\nimpact of the MSP on exports but it would firm up the domestic
\nrice prices.<\/p>\n
\"Higher domestic prices may put pressure on the government to
\nraise the export prices also,\" he said.<\/p>\n
6. IBRA (3x10)<\/p>\n
Govt urged to
\nprovide legal
\nbasis for IBRA<\/p>\n
Government urged to provide legal foundation for IBRA<\/p>\n
JAKARTA (JP): President Megawati Soekarnoputri needs to
\nimmediately sign a new decree to provide a legal foundation for
\nthe Indonesian Bank Restructuring Agency (IBRA) to work
\n\"properly\" from, a senior legislator said on Monday.<\/p>\n
Faisal Baasir of the House of Representatives Commission IX
\nfor financial and development planning affairs said that the new
\ndecree was needed following Megawati's decision to transfer the
\nagency from under the supervision of the Ministry of Finance to
\nthe State Ministry of State Enterprises.<\/p>\n
\"What's most important for the House is that everybody carries
\nout their jobs properly without having to worry about
\nlegalities,\" he told the Jakarta Post.<\/p>\n
IBRA was previously under the supervision of the Ministry of
\nFinance as stipulated by government regulation No. 17\/1998.<\/p>\n
Megawati decided to transfer IBRA to the State Ministry for
\nState Enterprises to allow the Ministry of Finance to focus on
\nits efforts to achieve state budget sustainability.<\/p>\n
IBRA controls various banking assets worth Rp 600 trillion
\n(US$68.72 billion) transferred from closed banks, ailing banks
\nand former bank owners, making the agency vulnerable to
\nintervention from politicians and influential businessmen.<\/p>\n
The agency is mandated to restructure the assets and sell them
\nto raise cash to help finance the state budget deficit.<\/p>\n
But IBRA often has to face severe political obstacles,
\nincluding from Commission IX legislators, in implementing its
\nprogram.<\/p>\n
This year, the agency was targeted to raise about Rp 27
\ntrillion in cash, and so far it has raised Rp 14 trillion.<\/p>\n
For the 2002 state budget, the government has targeted to
\nraise Rp 35.3 trillion in cash, of which Rp 21.5 trillion is to
\nhelp finance the projected budget deficit of 2.5 percent of the
\ngross domestic product, and the remaining Rp 13.8 trillion is to
\nrepurchase government bank recapitalization bonds to help ease
\nthe burden of the state budget.<\/p>\n
The agency is also mandated to restructure some Rp 7.5
\ntrillion of non-performing bank loans under its management, which
\nwill be swapped with bank recapitalization bonds.<\/p>\n
Late last week, IBRA chairman I Putu Ary Suta said the new
\ntarget was difficult to achieve given the deteriorating value of
\nIBRA's assets.<\/p>\n
Ary Suta confirmed on Monday that the government had yet to
\nissue the new decree governing IBRA's new status.<\/p>\n
\"No, not yet. I haven't received any information about that
\nyet,\" he said on Monday.<\/p>\n
He refused to elaborate further on the subject saying he was
\nnot in a position to comment on that particular matter.(10)<\/p>\n
8. SPORE (2x10)<\/p>\n
S'pore offers
\ntraining to RI<\/p>\n
SINGAPORE (AP): Hundreds of officials from cities and
\nprovinces in Indonesia will come to Singapore to hone their
\nadministrative skills now that they've been granted more
\nautonomy, a business school said Monday.<\/p>\n
Thirty provincial governors and about 500 mayors and other
\nlocal Indonesian officials will take part in the program run by
\nthe Singapore Institute of Commerce, or SIC, school directors
\nsaid on Monday.<\/p>\n
A new autonomy law that took effect this year gives
\nIndonesia's regional governments more control over local affairs.
\nThe move is aimed at cooling separatist movements in parts of the
\nsprawling archipelago.<\/p>\n
However, implementing the new law has proven difficult as many
\ninexperienced and under-trained professionals take on new duties.
\nIn some parts of the country this has led to temporary breakdowns
\nin public services such as water supply, road maintenance and
\neducation.<\/p>\n
\"Everybody always wants the power, but then they turn around
\nand say, 'Oops, we've also got the responsibility,\"' said SIC
\nexecutive director Michael Cope.<\/p>\n
Though Indonesia is a vast nation of more than 200 million
\npeople on thousands of islands, Singapore - a tiny city-state
\nwith 4 million people - can show the trainees examples of
\nadministrative efficiency, Cope said.<\/p>\n
The courses, expected to begin in the next few months, will
\nlikely cost more than 500,000 Singapore dollars (US$285,000) and
\nwill be paid for by the Association of Provincial Governors of
\nIndonesia.<\/p>\n
8. KL (2x12)<\/p>\n
Cheap imports
\nfeared after pact<\/p>\n
KUALA LUMPUR (Reuters): A planned trade pact within southeast
\nAsia risks unleashing a flood of cheap imports from elsewhere due
\nto some members striking bilateral accords with other states, a
\nMalaysian Chinese business group said on Monday.<\/p>\n
A survey by the Associated Chinese Chambers of Commerce and
\nIndustry of Malaysia (ACCCIM), quoted by the official Bernama
\nnews agency, said members were worried about the effects of such
\npacts on the Association of South East Asian Nations free trade
\nzone.<\/p>\n
Trade liberalizations and globalization more generally would
\nsee ASEAN markets being flooded by cheap imported consumer goods
\nsuch as shoes and clothing, the report said.<\/p>\n
Bernama did not identify any country as a source of goods.<\/p>\n
More than half of ACCCIM's 252 survey respondents, mainly from
\nmanufacturing, wholesale, retail and construction sectors, also
\nhighlighted immediate concerns about lower foreign and domestic
\ndemand and increased local competition.<\/p>\n
\"(A) majority of the Chinese business community is pessimistic
\nin relation to the economic outlook for the second half of 2001,\"
\nthe report said.<\/p>\n
ASEAN countries' stalled recovery from the region's financial
\ncrisis of 1997-1998 has revived discussion of a trade
\nliberalization plan which will see bigger states open their doors
\nto fellow members' goods from 2003.<\/p>\n
ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia,
\nMyanmar, the Philippines, Singapore, Thailand and Vietnam.<\/p>\n
9. LNG (2x12)<\/p>\n
Korea to get
\nLNG from Arun<\/p>\n
Korea to get 56,000 ton LNG from Arun<\/p>\n
SEOUL (Dow Jones): One liquefied natural gas cargo will arrive
\nin South Korea Tuesday from Indonesia's Arun gas field, the
\nMinistry of commerce, Industry and Energy, or Mocie, said Monday.<\/p>\n
The 56,000-metric-ton cargo is the first volume from Arun
\nsince production was halted in March, Mocie said in a statement.<\/p>\n
ExxonMobil Indonesia Inc., a unit of Exxon Mobil Corp.,
\nresumed some of its natural gas operations in mid-July after a
\nfour-month shutdown due to security concerns in Aceh province.
\nExxonMobil Indonesia is the sole natural gas operator at Arun.<\/p>\n
Mocie said this is the restart of normal LNG imports from
\nArun, securing stable LNG supply to South Korea during the coming
\nhigh demand season.<\/p>\n
Indonesia's state-run Pertamina asked South Korea to take two
\ncargoes in August and four cargoes in September, but South Korea
\nrefused because it had made alternative LNG purchase arrangements
\nuntil September, Mocie said.<\/p>\n
South Korea plans to receive two cargoes in September and four
\nor five cargoes in October, Mocie said.<\/p>\n
Indonesia exports LNG from the Arun gas field to South Korea
\nand Japan.<\/p>\n
Indonesia is South Korea's largest LNG supplier. South Korea
\nhas a long-term contract with Indonesia to import 3 million tons
\nof LNG from Arun and 2.3 million tons from Bontang in 2001.<\/p>\n
This year, South Korea also plans to receives 11.02 million
\ntons of LNG from its other contract suppliers - Malaysia, Qatar,
\nOman and Brunei.<\/p>",
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