Indonesian Political, Business & Finance News

Archive: 13 January 1998

59 articles found

Hun Sen against ASEAN advice

Hun Sen against ASEAN advice PHNOM PENH (AFP): Cambodian strongman Hun Sen rejected any advice on democracy and human rights from the Association of Southeast Asian Nations yesterday, saying it was in no position to lecture on those subjects. ASEAN should pay more attention to its own economic problems instead of meddling in Cambodia's affairs, he said.

Govt allocates Rp 204b for drought-hit areas

Govt allocates Rp 204b for drought-hit areas JAKARTA (JP): The government will allocate more than Rp 204 billion (US$25.5 million) in the next two and a half months to help restore food subsistence and develop the three drought-hit regencies in Irian Jaya.

Aid to S. Korea seen squeezing Asia liquidity

Aid to S. Korea seen squeezing Asia liquidity TOKYO (Reuters): The global injection of liquidity into South Korea to help Seoul ride out its crisis is choking off capital flows to the rest of Asia as international banks draw funds from other places, senior analysts say.

Depositors demand their money

Depositors demand their money JAKARTA (JP): Twelve people claiming to represent some 38,000 holders of savings accounts in banks liquidated by the government in November asked the House of Representatives yesterday to push the government to reimburse all their money.

Rupiah stabilizes against the greenback

Rupiah stabilizes against the greenback JAKARTA (JP): The rupiah stabilized against the U.S. dollar yesterday on a positive market response to talks between the IMF team and Indonesian officials on the country's worsening economy, currency dealers said. Stock prices on the Jakarta Stock Exchange improved 2.12 percent on some gains of blue chip stocks, with the main price index closing up 7.26 points to 350.23.

Ex-husband jailed for damaging house

Ex-husband jailed for damaging house BOGOR (JP): The Bogor District Court sentenced a man to four months in jail yesterday for damaging a house belonging to his former wife in Kampung Sugutamu of Bakti Jaya village. Presiding judge Martini said the defendant, Adi Widodo, 29, was proven guilty for damaging Surya Dwiastuti's house on several occasions between 1990 and 1997. Martini lightened Adi's sentence since the defendant had never committed a crime and promised to improve his behavior.

Spie may delay RI deal

Spie may delay RI deal PARIS (Reuters): A senior executive with construction firm Spie Batignolles was quoted yesterday as saying a three billion franc contract in Indonesia may be delayed due to economic problems, but he did not expect it to be cancelled. "This contract has an obvious economic justification, so we are not worried about it being questioned," financial director Olivier Dubois was quoted on Monday as saying in financial daily La Tribune. "But a delay is possible," he said.

Finding balance between stability and change

Finding balance between stability and change By Mochtar Buchori JAKARTA (JP): The seven-page resolution in the ASEAN summit in Kuala Lumpur last month, called ASEAN Vision 2020, states that ASEAN is "an outward-looking Association of Southeast Asian Nations, living in peace, stability and prosperity in a dynamic, caring community". Since this is a goal for all of ASEAN, I think every member country has the moral obligation to steer their respective societies in this direction.

Smelter project continues

Smelter project continues TOKYO (Reuters): Japan's Mitsubishi Materials Corp. said yesterday it did not expect any delay in the launch of its copper smelter and refinery in Indonesia, despite a financial crisis sweeping the Southeast Asian country. A Mitsubishi Materials spokesman said construction of the 200,000 ton-per-year smelter in Gresik in Indonesia's East Java was scheduled to be completed in August, with operations to begin in December.

Save the rupiah

Save the rupiah I am an expatriate living in Indonesia for the last three years. Indonesia is a fantastic country to live in with its diversity in culture, people and the scenic landscape. It is a shame to observe over the last few months, especially since December last year, that the people of this nation are allowing the rupiah to continue falling to such an unrealistic level.

Megawati's nomination 'up to the people'

Megawati's nomination 'up to the people' JAKARTA (JP): Aides to Megawati Soekarnoputri said her willingness to run for the presidency was not a mere political show and it is the people who now have to decide whether they would like to see her nominated as the next president. Kwik Kian Gie, a Megawati loyalist who chairs her research and development center, said yesterday that the ball was no longer in Megawati's court.

Hashimoto, Kohl phone Soeharto, Goh due here

Hashimoto, Kohl phone Soeharto, Goh due here JAKARTA (JP): Japanese Prime Minister Ryutaro Hashimoto and German Chancellor Helmut Kohl yesterday telephoned President Soeharto to express their concerns about Indonesia's deepening financial crisis. Minister/State Secretary Moerdiono said here that Hashimoto had called Soeharto from Tokyo at 2 p.m. Jakarta time for about 35 minutes, and later Kohl talked with Soeharto on the phone for about 10 minutes.

Cohen calls for closer military ties with SE Asia

Cohen calls for closer military ties with SE Asia KUALA LUMPUR (Agencies): U.S. Defense Secretary William Cohen called yesterday for closer military ties with Southeast Asian countries to support the 100,000 American troops that guarantee regional security. Speaking here against a backdrop of economic and political uncertainty in the region, Cohen emphasized the United States' need for access to ports, logistical support and training opportunities in Southeast Asia.

Economic, political reforms must work together

Economic, political reforms must work together JAKARTA (JP): Economic reforms made to deal with the lingering economic crisis will only succeed if they are coupled with democratic political reforms which ensure the enforcement of law, the National Commission on Human Rights said here yesterday. In a biting three-page statement, the commission censured the government's failure to resolve fundamental political problems which have aggravated the current crisis.

Where to go in Jakarta:

Where to go in Jakarta: Exhibitions * Painting Exhibition: Kumuh by Margono at Galeri Cipta III, Taman Ismail Marzuki Arts Center, Jl. Cikini Raya 73, Central Jakarta, 10 a.m. to 9 p.m., until Jan. 18. * Photo Exhibition: 100 old photos from Indonesia and Singapore, at Galeri TC (Twilight Cafe), Jl. Kemang Raya No.24A South Jakarta, Sunday to Thursday, 11:30 a.m. to 12 p.m., Friday to Saturday 11:30 a.m. to 2 a.m., until Jan. 29.

Perumka prepares for exodus

Perumka prepares for exodus BANDUNG: The Perumka train company has prepared 247 locomotive and 1,006 passenger carriages to carry an average of 178,000 commuters daily during the Idul Fitri holiday at the end of the month. Perumka's spokesman Helmy Azis told reporters here yesterday that the company would also offer a 10 percent to 15 percent discount for economy class passengers traveling one day before or after Idul Fitri. Idul Fitri falls on Jan. 30 and Jan. 31.

12 karatekas selected for Asian Games

12 karatekas selected for Asian Games JAKARTA (JP): The Indonesian Karate-do Federation (Forki) is grooming 12 young karatekas to take part in the Asian Games in Bangkok this December. Boy Crain, the federation's technical director, said Sunday the 12 karatekas were chosen following their good performance at the 19th SEA Games here in October and the Asia-Pacific amateur karate championships in Macau.

For the love of money

For the love of money A group of individuals, led by businesswoman Siti Hardiyanti Rukmana, has launched the "Love Rupiah" campaign, aimed at shoring up people's confidence in the national currency by selling their U.S. dollar holdings in exchange for rupiah. Confidence in the rupiah has ebbed in recent months. More and more people were opting to hold dollars and other foreign currencies and gold. Anything but the rupiah, whose value has plunged.

Project repeal draws mixed reactions

Project repeal draws mixed reactions JAKARTA (JP): The government's decision to cancel and review 15 megaprojects to cope with the worsening monetary crisis has drawn mixed reactions. The decision has disappointed investors who own the projects, but earned praise from legislators and analysts. "We really hope the decision will help solve the monetary dilemma," legislator of the United Development Party (PPP) Muhsin Bafadal told The Jakarta Post yesterday.

Rp 800m provided to slum program

Rp 800m provided to slum program JAKARTA (JP): The city administration and the Ministry of Social Affairs handed over a donation totaling Rp 800 million (US$100,000) to all five Jakarta mayoralties yesterday to help continue the city's slum rehabilitation program. The funds were received by representatives of the mayoralties in a ceremony led by Governor Sutiyoso.

US$600,000 sold in `Love Rupiah' drive

US$600,000 sold in `Love Rupiah' drive JAKARTA (JP): Politicians, tycoons, religious leaders and senior government officials sold American dollars yesterday as they joined in the "Love Rupiah" campaign aimed at restoring people's confidence in the national currency. More than US$600,000 were exchanged for rupiah in drives held separately at Bank Indonesia (central bank) and the House of Representatives. The campaign, however, has received a cool response in the market.

Conversion Rates

Conversion Rates Jakarta (JP): Bank Ekspor Impor Indonesia's (Bank Exim) conversion rates on Jan. 12, 1998: Buying Selling Rp Rp U.S.

SE Asian wheat imports likely to fall

SE Asian wheat imports likely to fall SINGAPORE (Reuters): Southeast Asian wheat consumption is likely to fall by 10 percent in the June/May 1997/98 year due to a cash crunch caused by the currency crisis, industry and trade officials said yesterday. "What we are looking at here is a 10 percent drop in the region," said an industry analyst who tracks wheat imports in Southeast Asia. A trader for a U.S. commodity house said a "drop of five to 10 percent in wheat imports is a safe bet".

ABRI cracks down on distributors hoarding supplies

ABRI cracks down on distributors hoarding supplies JAKARTA (JP): Armed Forces (ABRI) Chief Gen. Feisal Tanjung said yesterday that his office would crack down on food distributors found hoarding supplies to sell them at a higher price later.

Soeharto will pursue reforms: IMF

Soeharto will pursue reforms: IMF JAKARTA (JP): The International Monetary Fund (IMF) expressed confidence yesterday that President Soeharto would accelerate economic reforms to restore confidence in the economy. IMF first deputy managing director Stanley Fischer said after a 90-minute talk with Soeharto that he had a "very, very good" meeting with the President on efforts to haul Indonesia out of its financial crisis.

Renegotiation is required

Renegotiation is required I was very pleased to read Sunday's Jakarta Post article (Jan. 11, 1998), Harvard economist slams IMF for Asian crisis. In this article Jeffrey Sachs, director of the Harvard Institute of International Development is quoted as being critical of the off- the-shelf IMF remedies that have been applied in the current Asian crisis.

Ramos cancels trip to troubled area

Ramos cancels trip to troubled area ZAMBOANGA CITY, Philippines (DPA): Philippine President Fidel Ramos canceled a visit to a southern island yesterday after extremists threatened to disrupt his arrival and bomb an oil depot. Tight security had been put in place in Basilan province, some 900 kilometers south of Manila, to thwart any acts of sabotage during Ramos' scheduled cabinet meeting in the capital of Isabela today.

Stop hunting for dollars!

Stop hunting for dollars! From Media Indonesia The country's media report daily on the changes in U.S. dollar exchange rates against the rupiah. They also show photographs and scenes where people exchange rupiah for dollars. From day to day things do not get better. The situation has reached a state of hysteria. Nearly the whole community, which had been quiet before, has joined in the panic. The rate of the dollar against the rupiah has risen to frenzy, maybe as a result of media reports.

Donation for labor programs

Donation for labor programs JAKARTA (JP): The municipality will start a campaign to advertise a special philanthropic fund called Dompet PHK (Wallet PHK) to raise money for its employment programs, Governor Sutiyoso said yesterday. Sutiyoso said the funds raised in the campaign would help the city cope with the unemployment crisis which has become increasingly worse in Jakarta over the last four months due to the country's economic woes.

Kosgoro urges govt to follow IMF measures

Kosgoro urges govt to follow IMF measures JAKARTA (JP): The Kosgoro cooperatives movement, one of the founding seven organizations of Golkar, urged the government yesterday to follow all the suggested measures set by the International Monetary Fund (IMF) to help overcome the monetary crisis. "The Indonesian government must fulfill all the requirements established by the IMF, as long as they don't impinge the nation's sovereignty," said Kosgoro in a statement, read out by its chairman Bambang W.

Indonesia in spotlight, but no cheers in S. Korea

Indonesia in spotlight, but no cheers in S. Korea SEOUL (Reuters): Indonesia's mounting crisis may have drawn the world spotlight away from troubled South Korea, but there is little cause to celebrate in Seoul. South Korea has been a major investor in Indonesia and further problems there would simply feed an unresolved financial debacle at home, analysts say.

Economic reforms

Economic reforms While Mr. Stanley Fischer and Lawrence Summers from the U.S. Treasury Department are here to discuss reform with the Indonesian government leaders, let us hope that they will not overlook the reforms needed in the world of every day commerce in Indonesia. Indonesia's economic and political stability will be effected not only by macro economics but by the health of the day-to-day marketplace.

17 people die in cholera outbreak

17 people die in cholera outbreak KEFAMENANU, East Nusa Tenggara: Seventeen people from four districts in Timur Tengah Utara regency have died in a cholera outbreak that has affected the area since Dec. 23, a regent was quoted by Antara as saying. While inspecting the area with the deputy governor of East Nusa Tenggara, Regent Anton Amaunut said Saturday that the disease had inflicted 222 people aged between 15 and 60 years of age in his regency.

IMF and govt divided over draft state budget

IMF and govt divided over draft state budget The state budget for 1998/1999 has disappointed the International Monetary Fund. Economist Kwik Kian Gie discusses the budget that may have caused a difference in opinion between the government and the fund. Question: The IMF is disappointed with the 1998/1999 budget. Can you explain why?

Is a stronger rupiah already around the corner?

Is a stronger rupiah already around the corner? By C.J. de Koning JAKARTA (JP): One of the characteristics of some economists is to predict the future on basis of past experience. In other words if the rupiah depreciates toward the U.S. dollar over time then it is an easily acceptable prediction to see the rupiah fall further. What is harder, is to predict the timing of the turn around point, but if history is any guide to financial markets what comes down must come up again.

BT helps small businesses

BT helps small businesses JAKARTA (JP): Bankers Trust Indonesia, the representative office of Bankers Trust, provided a US$140,000 grant yesterday to Bina Swadaya, one of Indonesia's leading non-governmental organizations (NGO), to support the development of small businesses. Bankers Trust country manager for Indonesia Irwan Habsjah said the grant to be disbursed in two years would be used to finance small businesses in Jakarta, Bogor and Bekasi.

Joint venture to build $70m lube oil plant

Joint venture to build $70m lube oil plant JAKARTA (JP): State oil and gas company Pertamina has set up a joint venture to build a US$70 million lube oil blending plant in North Jakarta to add to the domestic supply. Pertamina president Soegianto said yesterday the joint venture, PT Pertajaya Lubrindo, would produce 100,000 kiloliters of lubricant and 8,000 kiloliters of grease oil a year at its production facilities at the Nusantara industrial bonded zone in Marunda.

Stock Exchange

Stock Exchange Stock prices on the Jakarta Stock Exchange (in rupiah) on Jan. 12, 1998: Shares Close Change Trading Volume -------------------------------------------------------------- Ades Alfindo 700 -125 31,500 AHAP Insurance 450 0 0 Alter Abadi 325 0 0 Alumindo Light Metal 250 0 4,389,000 Alumindo Perkasa 250 0 0 Aneka Kimia Raya 850 25 20,000 Aneka Tambang 1,150 0 2,804,500 Anwar Sierad 125 0 400,500 Apac Centertex Corp.

Aussie crossers aim to win all

Aussie crossers aim to win all JAKARTA (JP): The six Australian motocrossers planning to compete in the Gudang Garam races in Tegal, Central Java, next month intend to sweep all the categories they enter. Their ambitions were confirmed when organizer Helmy Sungkar spoke with Bruce Wilkinson of the Australian team in Melbourne over the weekend. The Australian crossers' determination to win, Helmy said, should stimulate local riders to perform at their best during the Tegal meet scheduled for Feb.

Five shot by police during street brawls

Five shot by police during street brawls JAKARTA (JP): Five men were shot by police officers during sporadic brawls Sunday evening between residents of two districts in the Bukit Duri area, South Jakarta, police said. City Police spokesman Lt. Col. E. Aritonang yesterday insisted that the officers did not intentionally try to hit the victims. After firing warning shots into the air in an attempt to stop the brawl, police fired into the ground as some of the residents allegedly turned on them.

Many Jakartans look to pawnshops for quick cash

Many Jakartans look to pawnshops for quick cash JAKARTA (JP): Many Jakartans have been pawning their valuables, especially gold and other jewelry, for cash at state- run pawnshops throughout the city due to the current prolonged monetary turmoil, an official said yesterday. Perum Pegadaian Pawn Company spokesman Nafwardi said most people coming to the company's 23 pawnshops in the city were anxious to pawn their gold which has shot up in value recently to Rp 100,000 (US$12.5) per gram.

Dry spell continues

Dry spell continues SAMARINDA, East Kalimantan: Thousands of hectares of paddy fields in the Tenggarong subdistrict of the Kutai regency here face harvest failure due to the insufficient rainfall. Head of the local Ministry of Agriculture Sofyan Alex said here yesterday that the regencies of Berau, Bulungan and Pasir might also face the same plight. "I just received reports from farmers today, and my office is checking on them today," he was quoted by Antara as saying.

New policy a must for globalization

New policy a must for globalization By Djauhari Oratmangun This is the second of two articles on globalization and the role of the nation states. JAKARTA (JP): There is no doubt that globalization is probably one of the answers to meeting development objectives in most of the developing world.

Firecrackers injure 3 people

Firecrackers injure 3 people SEMARANG, Central Java: Three people were badly injured and three houses destroyed when 20 kilograms of firecrackers exploded Sunday in Temangede village, Gemuh subdistrict, in Kendal regency. Kendal Police Chief Lt. Col. Syaiful Bahri said 50-year-old Usron, who owned the firecrackers, suffered severe burns, while the two other victims, his neighbors, suffered only mild swelling. Witnesses said Sunday's explosion could be heard four kilometers away.

Local artists 'to benefit' from Year of Art and Culture

Local artists 'to benefit' from Year of Art and Culture JAKARTA (JP): Officials defended yesterday the government's decision to declare 1998 the Year of Art and Culture, saying the campaign was not merely a vehicle to attract tourists to the country but also to provide new opportunities for Indonesian artists.

Volvo's sales fall in Asia

Volvo's sales fall in Asia STOCKHOLM (Reuters): Swedish vehicle maker Volvo Cars said on Monday its 1997 sales in Southeast Asia probably fell to between 15,000 and 16,000 vehicles from 18,000 to 20,000 in 1996. "We expect between 15,000 and 16,000 cars to have been sold in Southeast Asia last year," spokesman Ulf Thorne told Reuters. "We've seen a rather sharp fall on this market but the picture is mixed.

Cohen urges Indonesia to act quickly

Cohen urges Indonesia to act quickly KUALA LUMPUR (Reuters): U.S. Defense Secretary William Cohen urged Indonesia yesterday to move quickly to bring its economy in line with the International Monetary Fund's policy prescriptions. "It's important for Indonesia to act quickly to try to conform its economic structures as closely as possible to the IMF recommendations," Cohen told a news conference in the Malaysian capital.

Bad loans at Japanese banks total $590b

Bad loans at Japanese banks total $590b TOKYO (AFP): Bad loans at Japanese banks totaled 76.708 trillion yen (US$590 billion) at the end of September under revised reporting standards, the finance ministry said yesterday. Under the previous method, the ministry said bad loans extended by Japanese banks at the end of September stood at 28.1 trillion yen ($211 billion).

Japan must cure own economic ills to help Asia

Japan must cure own economic ills to help Asia By Linda Sieg TOKYO (Reuters): Japan has vowed yet again not to let its woes drag the rest of Asia into more financial turmoil and trigger a global crisis, but analysts say Tokyo must loosen its tight fiscal grip still further to keep that promise. "At the moment, Japan is the key to stabilizing the region and I think they are beginning to get the message," said Russell Jones, chief economist at Lehman Brothers Japan.

Food producers, retailers agree to ease prices

Food producers, retailers agree to ease prices JAKARTA (JP): The producers and distributors of food and other essentials agreed yesterday not to raise prices anymore, at least until a week after the Idul Fitri holiday. They made the commitment not to raise prices at a three-day meeting with Minister of Industry and Trade Tunky Ariwibowo. "All parties, producers and distributors agreed to share the burden caused by the currency crisis we're facing," Tunky said after the meeting yesterday.

Bogor to move against soft porn

Bogor to move against soft porn BOGOR (JP): Bogor Mayor Eddy Gunardi has ordered the removal of all posters advertising soft porn films at local movie theaters and has directed law enforcement officials to clear the streets of prostitutes and transvestites. Eddy's instructions were made yesterday after he received written requests from students at Bogor's Institute of Agriculture (IPB). "We'll conduct both operations continuously.

Ramadhan time for Jakarta

Ramadhan time for Jakarta Tuesday Maghrib 6:17 p.m. Wednesday Imsak 4:16 a.m. Subuh 4:26 a.m.

SE Asian rubber glued to currency market

SE Asian rubber glued to currency market SINGAPORE (Reuters): Currencies will be the buzzword for the Southeast Asian rubber trade this week, although a fire in the rubber center of Hat Yai will help support rubber prices in Thailand, traders said yesterday. "The (Indonesian) rupiah fluctuations have driven the market crazy. Buyers are having difficulty placing their bids, while traders complain the fall of the rupiah keeps rubber prices down," said one trader in Indonesia.

Peregrine Sewu Securities unhurt by problem in HK

Peregrine Sewu Securities unhurt by problem in HK JAKARTA (JP): Indonesian securities house PT Peregrine Sewu Securities will not be directly affected by the financial difficulties faced by the Peregrine Group of Hong Kong. Peregrine Sewu Securities president Timothy Gray said yesterday the difficulties being experienced by the Peregrine Group in Hong Kong would have no direct impact on PT Peregrine Sewu Securities in Indonesia.

Sri Bintang against Silangit's appointment

Sri Bintang against Silangit's appointment JAKARTA (JP): The trial of former legislator Sri Bintang Pamungkas continued at a snail's pace yesterday as the defendant maintained his objection against S. T. Silangit's appointment as the prosecuting attorney. Judge Darlan Nasution granted Bintang's request for an adjournment yesterday following his refusal to deliver a legal exception. "I rejected Silangit as prosecutor of the trial," Bintang told the South Jakarta District Court.

Australia 'committed to Asia'

Australia 'committed to Asia' CANBERRA (Reuters): Acting Australian Prime Minister Tim Fischer said yesterday that Australia remained committed to Asia, but would develop new export markets. He also said a Sunday telephone conversation between Indonesia's President Soeharto and Australian Prime Minister John Howard was "a very useful dialogue". "The situation continues to unfold and there will be other interface between the Australian government and the Indonesian government," he told reporters.

Duff enters Indonesia

Duff enters Indonesia HONG KONG (Reuters): U.S. rating agency Duff and Phelps Credit Rating Co. (DCR) said yesterday that it had formed a joint venture with PT Kasnic Indotama to rate Indonesian entities. The partnership was recently approved by regulatory authorities in Indonesia, DCR said. It said the venture is expected to start rating issues in the first quarter of 1998.

PBSI to ax participation in some meets

PBSI to ax participation in some meets JAKARTA (JP): The Badminton Association of Indonesia (PBSI) has announced it is to cut its participation in several international competitions. MF Siregar, the association's technical director, said that the move was prompted by the financial chaos currently blighting Indonesia. "Considering the financial situation, PBSI will only send players to 13 international tournaments.

Police continue probe into attack on Tangerang kiosks

Police continue probe into attack on Tangerang kiosks TANGERANG (JP): Local police are still investigating the burning and destruction of 14 food kiosks Saturday evening by about 2,000 angry Cikupa residents who accused the warung owners of offering prostitution services. As of yesterday, no one had been arrested and no fatalities had been reported. Estimated material losses are in the millions of rupiah.