Indonesian Political, Business & Finance News

Archive: 23 January 1998

55 articles found

Open letter to Mr. Camdessus

Open letter to Mr. Camdessus When you gave your media conference in Jakarta on Jan. 15, you expressed great elation and satisfaction with the letter of intent submitted by our government. Attaching great importance to the document, it was signed beyond normal international usage by no less than the President of our country.

Consortium established to build $6b power plant

Consortium established to build $6b power plant JAKARTA (JP): A consortium was formed here yesterday to develop a 5,000-megawatt (MW) power plant worth US$6 billion in Cirenti, Riau, to supply power to Malaysia.

Nigerian on drug charges may face death penalty

Nigerian on drug charges may face death penalty JAKARTA (JP): A 28-year-old Nigerian man may face the death penalty for selling 2.48 kilograms of heroin worth Rp 50 million (US$4,545). Prosecutor Agus Widodo asked Central Jakarta District Court yesterday to impose the penalty on Edhosa Aghahowa, alias Temmy, if he is found guilty of violating Article 23 (5) of Law 6/1976 on narcotics.

Stock Exchange

Stock Exchange Stock prices on the Jakarta Stock Exchange (in rupiah) on Jan. 22, 1998: Shares Close Change Trading Volume -------------------------------------------------------------- Ades Alfindo 700 0 0 AHAP Insurance 450 0 0 Alter Abadi 300 -25 5,000 Alumindo Light Metal 275 25 225,000 Alumindo Perkasa 250 0 0 Aneka Kimia Raya 950 -25 17,000 Aneka Tambang 1,500 -100 18,265,000 Anwar Sierad 125 0 82,500 Apac Centertex Corp.

PDAM Jaya to cut supply for 6 hours

PDAM Jaya to cut supply for 6 hours JAKARTA (JP): The city-owned water company, PDAM Jaya, will temporarily stop its supply to various areas in the city for six hours at 9 a.m. tomorrow. The company's director for techniques and production, Kris Tutuko, said the pause was needed for technicians to install new electrical devices at the firm's water treatment installation in Pejompongan, Central Jakarta.

Food going cheap at police bazaar

Food going cheap at police bazaar JAKARTA (JP): City police are holding a two-day food bazaar, which finishes today, at their headquarters on Jl. Jend. Sudirman, South Jakarta. Jakarta Police spokesman Lt. Col. E. Aritonang said the annual bazaar, which is held a week before the Idul Fitri holiday, was well received by the public yesterday. He said the food for sale included cooking oil, rice, flour and sugar, which were sold out within three hours, faster than in previous years.

Telkom cuts rates over Idul Fitri

Telkom cuts rates over Idul Fitri BANDUNG, West Java: State telecommunications company PT Telkom is giving a special discount on long distance calls during the Idul Fitri holiday. The company's communications vice president D. Amarudien told reporters yesterday the discount would apply for seven days from Jan. 27 to Feb. 2. "Phone conversations from 6 a.m. to 11 p.m. will have a 50 percent discount, while conversations from 11 p.m. to 6 a.m. will have a 75 percent discount," Amarudien said.

Parties reject demand to name VP candidates

Parties reject demand to name VP candidates JAKARTA (JP): Indonesia's three political organizations cold- shouldered yesterday the growing calls that they name their vice presidential candidates now rather than wait until after the presidential election in March.

Japan's assistance to restore trust in LCs sought

Japan's assistance to restore trust in LCs sought JAKARTA (JP): President Soeharto asked a senior Japanese official yesterday to help restore trust in Indonesian letters of credit (LC). Minister/State Secretary Moerdiono said the rejection of Indonesian LCs by foreign banks, including those in Japan, dealt a big blow to exporters.

ITB seeks solution to corporate debts

ITB seeks solution to corporate debts JAKARTA (JP): The 34,000-strong alumni association of the Bandung Institute of Technology (ITB) called on the government yesterday to set up a team to resolve the corporate debt problem.

Subdistrict heads go to court

Subdistrict heads go to court TANGERANG (JP): The incumbent head of Batu Ceper subdistrict and his predecessor will be tried in the local district court on charges of illegally selling 12.4 hectares of state land, an official said yesterday. Suhaemi of the Tangerang Prosecutor Office said the two men were identified as Mustaqim, 45, the incumbent head and Mukri, 55, a former head of the subdistrict.

Where to go in Bali:

Where to go in Bali: Music and entertainment * Ramada Bintang Bali, Kuta: - La Brasserie Cafe Restaurant: Crosstil Quatro, daily. - Alun-alun Lounge: The Heart Beat Band, nightly except on Thursday, 8:30 p.m. to 12:30 a.m. - Poolside Open Theater: Tek-Tekan Dance, Saturday. Legong Terompong Dance, Tuesday. Ramayana Dance, Thursday. - BB Discotheque: Fashion show, every Friday. Dance show by Andromeda, Friday, 9 p.m. to 3 a.m. - Coconut Wharf Restaurant: Italian Cuisine Beach Side, daily, 8 a.m.

Asian currencies shudder as Indonesian rupiah crumbles

Asian currencies shudder as Indonesian rupiah crumbles SINGAPORE (Reuters): The Indonesian rupiah broke down on yesterday amid mounting jitters about the country's debt crisis, a mere week after a package of stiff new IMF-led reforms sparked hopes of real change. It dived 20 percent to 15,000 per dollar within the first hour of Asian trade, casting a shadow over other Asian currency and stock markets.

Hayono wants sports bodies to evaluate athletes' form

Hayono wants sports bodies to evaluate athletes' form JAKARTA (JP): State Minister of Youth Affairs and Sports Hayono Isman has urged sports organizations which are unlikely to win medals at the 13th Asian Games in Bangkok in December to evaluate their athletes' form before the National Sports Council's September deadline. "Each sports body must evaluate its athletes' form objectively before September.

How to love one's country in a time of crisis

How to love one's country in a time of crisis By Goenawan Mohamad With the current monetary and economic crisis continuing unabated, what would be the most appropriate stance for Indonesians to take? Intellectual, poet and former newsmagazine editor Goenawan Mohamad offers his view on the question. JAKARTA (JP): I was brought up with a belief that "Indonesia is inside you". In other words, things that hurt the country also hurt you, at least psychologically.

Car market battered by rupiah's free fall

Car market battered by rupiah's free fall JAKARTA (JP): The rupiah's free fall against the U.S. dollar has created new uncertainty among local car dealers, prompting some to impose unfixed prices and some to halt sales activities altogether. Some car dealers said yesterday the roller-coaster ride of the currency had forced them to limit their stock as well as their sales, as the price of cars, especially those with high import content, followed the currency closely.

Bombmakers will not get off lightly, Sjafrie warns

Bombmakers will not get off lightly, Sjafrie warns JAKARTA (JP): City military commander Maj. Gen. Sjafrie Sjamsoeddin said yesterday that suspects in Sunday's bomb blast in Tanah Tinggi could face the death penalty or life in prison for illegally possessing, producing and using explosives. The two-star general said a suspect, Agus Priyono -- and two accomplices who are still at large -- violated the 1951 Emergency Law No.

Just in time

Just in time Although no one has presented the present economic situation in this perspective, I believe that the crisis is spelling the end to Asia's soga shosa-led capitalism. Soga-shosa refers to Japanese trading companies. They are part of Japan's strategy to farm out outdated production methods and technology to its Asian neighbors.

VISITING GORO FAIR:

VISITING GORO FAIR: JP/alx President Soeharto (second right) inspected a fair held at the Goro wholesale center yesterday evening where the food stalls use coal briquettes to cook food. "Using briquettes is cheaper than using gas or kerosene Pak," said food stall owner Ibu Moer. Her stall sells Javanese food. Soeharto has campaigned for years for people to use briquettes.

'Awani Dream 2' stops cruising as crisis hits

'Awani Dream 2' stops cruising as crisis hits JAKARTA (JP): The domestic operations of passenger liner Awani Dream 2, owned by PT Awani Modern Indonesia, have run aground on the country's ailing economy and uncertainty over the rupiah's value. Company sales and marketing director James Hartono said yesterday that the vessel -- which charged passengers in U.S. dollars -- had been leased to cruise in the Mediterranean Sea for an unspecified period.

'Insecure parking'

'Insecure parking' At 6:30 p.m. on Jan. 5, I parked my car in the basement parking lot of Plaza Indonesia. When I returned 30 minutes later, I found my car had been broken into. The front right door lock was damaged and my briefcase containing important documents was stolen. Where were all the security guards and parking attendants? One would have thought that a recent changeover of the car park management to Secure Parking would have kept thieves and burglars at bay.

Minimum wage hike hangs in the balance

Minimum wage hike hangs in the balance JAKARTA (JP): The decision to raise worker's minimum wage continues to hang in the balance as the government further defers the decision due to the worsening economic crisis. Director General of Labor Supervision of the Ministry of Manpower Syaufi'i Syamsuddin said yesterday that the government has yet to decide whether or not to raise the minimum wage this year.

RI plan won't work, 'agreement needed'

RI plan won't work, 'agreement needed' LONDON (Reuters): Indonesia's strategy to solve its private- sector debt crisis will not work in its current form, a senior Western banker said on Wednesday after meeting with a government debt negotiator. David Folkerts-Landau, global head of emerging markets research at Deutsche Morgan Grenfell, said the country needed an immediate agreement with foreign creditors and the International Monetary Fund (IMF) on a write-down of foreign currency debts.

Rupiah should strengthen: Camdessus

Rupiah should strengthen: Camdessus BRUSSELS (Reuters): The head of the International Monetary Fund said on Wednesday that the battered Indonesian rupiah should strengthen. But he said that the recovery would take time. The Indonesian currency has nose-dived despite last week's agreement with the IMF for sweeping economic reforms in return for a $43 billion bail-out package.

RI seeks help from Japan

RI seeks help from Japan JAKARTA (JP): President Soeharto has asked Japan to use its influence to help resolve Indonesian corporate foreign debt, which caused the rupiah to crash to almost 17,000 to the U.S. dollar yesterday. Soeharto told a visiting Japanese mission, led by Deputy Foreign Minister Masahiko Koumura, that the government would continue to help private firms in their negotiations with foreign creditors, but would not bail them out.

Rupiah's freefall spooks Asian bourses

Rupiah's freefall spooks Asian bourses TOKYO (AFP): Asia-Pacific stock markets dipped yesterday, spooked by the freefall of the Indonesian rupiah which deepened regional economic gloom and worries over corporate health. Stock indices in Tokyo, Hong Kong, Singapore, Kuala Lumpur, Sydney, Bangkok, Jakarta, Manila, Seoul and Taipei, Shanghai and Auckland closed lower in sympathy with fresh weakness assailing regional currencies.

Nadya best presenter in ATV Awards

Nadya best presenter in ATV Awards JAKARTA (JP): MTV veejay Nadya Hutagalung walked off with the honors as best light entertainment presenter at the 1997 Asian Television Awards in Singapore Tuesday. She sidestepped last year's winner, Diana Ser of Television Corporation of Singapore, and Channel V's Trey Farley from Hong Kong. Nadya hosts MTV Most Wanted, broadcast weekdays at 1:30 p.m. on MTV Asia. She has also graced magazine covers in Singapore, Indonesia, Thailand, Japan and the U.K.

Where to go in Surabaya:

Where to go in Surabaya: Music and Entertainment * Mercure Grand Hotel, Jl. Raya Kupang Indah: Pasar Senggol with traditional music - keroncong or langgam, every Wednesday night. * Hyatt Regency Surabaya, Jl. Jend. Basuki Rakhmat 106-128: - The Tavern Pub: Decada Band with a Saxophone player, daily except Sunday 9 p.m. to 1 a.m., Hazztoria Band, live music performance on Sunday, 8:30 p.m. to 12:30 a.m. - Atrium Lounge: Solo Pianist, Monday to Friday, 7 p.m. to 10:45 p.m., Saturday at 7 a.m.

Apkindo chief denies business cartel charge

Apkindo chief denies business cartel charge JAKARTA (JP): The Association of Indonesian Wood Panel Producers (Apkindo) denied that it had been operating as a business cartel. "Apkindo is not a cartel. The association does not fix prices and export quotas, we just provide price and market information in overseas countries to exporters," the association's executive director, Tjipto Wigjoprajitno, said Wednesday.

KL Moslems pose as Chinese

KL Moslems pose as Chinese KUALA LUMPUR (DPA): Moslems in Malaysia are resorting to speaking in Chinese or reading Chinese newspapers to avoid arrest by Islamic authorities for eating in restaurants during the fasting month of Ramadhan, a news report said yesterday. However, their act has failed to save them from being caught by religious officials, who conduct regular raids on restaurants during the month-long fast which ends next week.

Indonesians must have confidence

Indonesians must have confidence I am a foreigner and have lived here for two and a half years with my family. I want to convey to all Indonesians that you have a really beautiful country and you are indeed a beautiful people. You have a wide diversity of culture that is colorful and meaningful. Since childhood you were taught how to be patient, caring and concerned for others. You have known hardship and in a time of crisis you know how to handle the bad times as well as the good times.

Can half a program succeed?

Can half a program succeed? With the IMF aid package for Indonesia in place, why is the current financial crisis deepening? ABN-AMRO Bank country manager C.J. de Koning examines the question in the following article. JAKARTA (JP): While reading the full text of the IMF agreement with Indonesia, I got the clear feeling that I was only reading half a program. In order to understand my feeling, let me try to explain how I think the Indonesian financial crisis developed.

Tougher penalties needed to put brakes on scalpers

Tougher penalties needed to put brakes on scalpers JAKARTA (JP): A police officer said yesterday heavier punishments for scalping were needed to fight the rising tide of people taking money for helping others obtain or renew their driver's licenses. Head of City Police Internal Affairs Detachment Lt. Col. Nikmat Jayadi said heavier punishment was essential because more scalpers were defying the law.

Govt issues ruling on state companies

Govt issues ruling on state companies JAKARTA (JP): The government has issued a new regulation on state companies to boost their efficiency and competitiveness amid the monetary crisis, the Ministry of Finance announced yesterday. The new ruling gives the Minister of Finance the sole right to supervise state companies. In the previous ruling, the Minister of Finance was the nominee shareholder of all state companies but the supervisory rights were jointly shared by related ministries.

Share prices fall along with rupiah

Share prices fall along with rupiah JAKARTA (JP): The rupiah continued its record plunge, almost bottoming out at 15,000 to the U.S. dollar yesterday, and share prices on the Jakarta Stock Exchange (JSX) fell 4.8 percent on persistent negative sentiment. Currency dealers and stockbrokers said market sentiment remained bleak yesterday on a combination of rising fears over the private sector external debt and heightened political sensitivity over the presidency and vice presidency.

Rampant violations in sale of bus tickets: DLLAJ

Rampant violations in sale of bus tickets: DLLAJ JAKARTA (JP): The head of City Land Transportation Agency (DLLAJ), J.P. Sepang, expressed concern yesterday over rampant violations in bus ticketing for those intending to leave the city for next week's Idul Fitri holiday. During an impromptu visit to Lebak Bulus Bus Terminal in South Jakarta and Kampung Rambutan Bus Terminal in East Jakarta, he found that almost every ticket booth displayed misleading ticket prices.

Koran readings bring Lombok together

Koran readings bring Lombok together By H. Bur Solihin MATARAM (Antara): Lombok in West Nusa Tenggara is often known as the "Island of 1,000 Mosques". It could just as well be dubbed the "Land of 1,000 Torches" during the final days of the Ramadhan fasting month.

Gus Dur needs 'total rest' to speed up his recovery

Gus Dur needs 'total rest' to speed up his recovery JAKARTA (JP): Abdurrahman Wahid's health is steadily improving but he will need complete rest to hasten his recovery, an official of the Nahdlatul Ulama (NU) Moslem organization said here yesterday. "He needs total rest to speed up his recovery," Arifin Junaidi, NU's deputy secretary-general told reporters. Arifin said that during Abdurrahman's fourth day at Cipto Mangunkusumo Hospital his condition had significantly improved.

New Japanese consul appointed

New Japanese consul appointed SURABAYA: Kaneaki Kobayashi replaced Takashi Matsumoto earlier this month as head of the Japanese Consulate General here. Antara reported yesterday that Kobayashi is scheduled to meet East Java Governor Basofi Soedirman later next month. Kobayashi started his diplomatic career in the foreign affairs ministry in 1959. He is married with two daughters and was previously Minister Counselor of the Japanese Embassy in Nigeria.

Residents protest over river project

Residents protest over river project JAKARTA (JP): Two hundred residents protested outside the Mangga Dua Selatan subdistrict office in Central Jakarta on Wednesday, demanding a postponement of compensation payments for the Ciliwung River normalization project. The residents came from four neighborhoods to be affected by the project, which aims to clean up the longest river in Jakarta. The project officially started in 1994. At risk are 109 houses and plots of land, according to the residents.

Aspindo joins "Love Rupiah"

Aspindo joins "Love Rupiah" JAKARTA (JP): Members of the Indonesian Mining Services Association (Aspindo) changed US$500,000 into rupiah yesterday as part of the Love Rupiah campaign. Association chairman Sudiarso Prasetio said $500,000 was collected from association members throughout the country who are concerned about the monetary crisis which has been gripping the country since the middle of last year. The association has 300 members across the country.

'Ojek' driver found murdered

'Ojek' driver found murdered JAKARTA (JP): A 20-year-old ojek (motorcycle taxi) driver was found dead with severe stab wounds and bruises on his body at a vacant lot in the back of the Taman Boulevard housing complex in Bekasi early yesterday. Local police believe that Mashuri bin Muhammad Haris of Kampung Dukuh Jaya, Pejuangan district, was robbed and killed by a group of men. The victim's new motorcycle was also found to be missing. Capt.

Oetojo apologizes for failing to get Tansil

Oetojo apologizes for failing to get Tansil JAKARTA (JP): Minister of Justice Oetojo Oesman said yesterday he had apologized to President Soeharto for failing to capture Eddy Tansil, the country's most wanted fugitive. Oetojo told the President he had employed every means available in a desperate search to recapture the escaped convict, even making enquiries abroad.

Ramadhan time for Jakarta

Ramadhan time for Jakarta Friday Maghrib 6:19 p.m. Saturday Imsak 4:22 a.m. Subuh 4:32 a.m.

Hino delays new RI plant

Hino delays new RI plant TOKYO (AFP): Japan's Hino Motors Ltd. is to postpone building a truck plant in Indonesia and slash its staff in Thailand due to the region's economic woes, officials said yesterday. The company, Japan's major truck maker and a member of the Toyota Motor Corp. group, would delay construction in Indonesia for a few years as truck sales had plunged more than 50 percent, an official for Hino said.

Clinton defends Asian bailout

Clinton defends Asian bailout WASHINGTON (AP): Seeking to answer growing criticism of multibillion-dollar bailouts of reeling Asian economies, the Clinton administration warned of serious threats to the U.S. economy and the global financial system if the crisis is not contained. Both President Bill Clinton and his chief economic spokesman, U.S.

The Asian economic crisis: Does meltdown spread?

The Asian economic crisis: Does meltdown spread? By Gwynne Dyer Following is the first of a three-part series of articles examining the economic, social and political implications of the current crisis that began in Asia and is threatening to involve the entire world. Subsequent parts will follow in the coming days. LONDON (JP): "The experience of being disastrously wrong is salutary," J.K. Galbraith once remarked. "No economist should be denied it, and not many are." Not now, anyway.

Conversion Rates

Conversion Rates Jakarta (JP): Bank Ekspor Impor Indonesia's (Bank Exim) conversion rates on Jan. 22, 1998: Buying Selling Rp Rp U.S.

11 killed in bus accident

11 killed in bus accident BANDUNG: Eleven people were killed and seven others injured when a minibus plunged into a ravine in Salawu, Tasikmalaya yesterday morning. A Tasikmalaya police officer told Antara by phone that the bus might have plunged into the ravine while traveling at high speed. The victims were immediately taken to the Tasikmalaya General Hospital. Brig. Gen.

Garuda hikes rates

Garuda hikes rates JAKARTA (JP): National carrier Garuda Indonesia will raise its rates for economy-class tickets on some domestic flights, the airline announced yesterday. The new tariffs, which are effective as of today, are Rp 339,000 (US$28.20) for a Jakarta-Surabaya flight, up from Rp 250,000; Rp 236,999 for Jakarta-Yogyakarta instead of Rp 174,000; and Rp 201,000 for Jakarta-Semarang compared to Rp 148,000.

Museum to hike entrance fee

Museum to hike entrance fee SURABAYA: The management of the Mpu Tantular Museum will increase its entrance fee next month, museum officials said. "The fee hike is not due to the monetary crisis as this was proposed a year ago to increase state income," head of the museum Himawan was quoted by Antara as saying recently. The entrance fee will rise from Rp 100 to Rp 150 for children, Rp 50 to Rp 100 for each person in a group and Rp 200 to Rp 750 for adults. (10)

Moslem-based PPP approves policy guidelines draft

Moslem-based PPP approves policy guidelines draft JAKARTA (JP): The United Development Party (PPP) faction approved a Golkar-sponsored draft amendment to election rules yesterday marking the end of the first stage of a People's Consultative Assembly general session.

Japan to help Asian states

Japan to help Asian states TOKYO (AFP): Japan is to "study" measures to assist Asian countries implement reforms required by the IMF in return for massive economic bailouts, a high-ranking finance ministry official said yesterday. "We will study what Japan can do to assist" Asian countries implement the agreed International Monetary Fund programs, Vice Finance Minister Takeshi Komura told a news conference.

Bring on the bad tidings

Bring on the bad tidings The government's zero growth forecast for the economy this year has not really sunk into people's minds, including, apparently, the minds of most government officials. Even as the economy tumbles from bad to worse, no one in the government is talking about a recession. They are willing to admit that there is a crisis, but how bad a crisis is something that they prefer not to discuss.

Reforms in the bureaucracy

Reforms in the bureaucracy The statement by state minister of administrative reforms, TB Silalahi, regarding the government's efforts to streamline the structure of our bureaucracy for greater efficiency is most appropriate and of strategic significance.