Indonesian Political, Business & Finance News

Archive: 5 October 1998

55 articles found

Rate ceiling for Oct. 5 - Oct. 11

Rate ceiling for Oct. 5 - Oct. 11 Time deposit Maximum rate Maximum rate Rp deposit (%) $ deposit (%) ------------------------------------------------- 1-month 66 15 3-month 61 15 6-month 50 15 12-month 48 15 24-month 29 18 Maximum overnight rate for rupiah : 52 percent Maximum overnight rate for U.S. dollars: 14 percent * Maximum interest rates which are covered by government guarantee. Source: Bank Indonesia

Management consultants find their market wilting

Management consultants find their market wilting JAKARTA (JP): Local management consultancies are suffering a sharp downturn in revenue because businesses have phased out their usual spending on their services in the crisis, a top industry executive has said. The chairman of the Indonesian Institute of Management Consultants (IKMI), Heru Sutojo, said on Saturday that business for the local consultants had dropped by more than 30 percent since the crisis began in the middle of last year.

PAL confirms it's to take off again

PAL confirms it's to take off again MANILA (AP): Philippine Airlines publicly announced Sunday it was reopening after forging a no-strike deal with its largest union, though militant workers vowed to continue opposing the deal. In several paid newspaper advertisements, PAL said it would offer 14 round-trip domestic flights from Manila starting on Wednesday and apologized to the public for problems caused by its shutdown last month. "Your national flag carrier is back," PAL said.

Separatists protest in Manokwari

Separatists protest in Manokwari JAKARTA (JP): Security personnel fired warning shots to disperse 500 separatists as they tried on Saturday to enter the pier area of the port of Manokwari, on the northwest tip of the mineral-rich province of Irian Jaya, Antara reported on Saturday. There were no reports of casualties, but the news agency said security officers were wounded on Friday during a rally in front of Manokwari's legislative assembly where separatist flags were raised.

Japanese tourist dies rafting

Japanese tourist dies rafting JAKARTA (JP): A 24-year-old Japanese tourist, Fusano Tominaga was killed last month when the white-water rafting boat he rented with four friends capsized on the Ayung river in Carangsari village, Bali. Tominaga's body was found on Sept. 24, one day after the incident. The other six passengers, including two guides, survived.

Art Summit schedule of events

Art Summit schedule of events Oct. 6-7: Dance, Kembang Sampah (Garbage Flowers), Miroto (Indonesia), Gedung Kesenian Jakarta (GKJ), Jl. Pos No. 2, Central Jakarta (Phone: 3441892). Oct. 7-8: Music, No World Improvisations, Jin Hi Kim (USA), Taman Ismail Marzuki (TIM), Jl. Cikini Raya 73, Central Jakarta (Phone: 3154087). Oct. 9-10: Music, Wulan Bamban, Suka Hardjana (Indonesia), GKJ, 8 p.m. Oct. 11-12: Theater, Ngeh (Understand), Teater Mandiri (Indonesia), TIM. Oct.

Spouses told to help ministers in crisis

Spouses told to help ministers in crisis JAKARTA (JP): First Lady Hasri Ainun Habibie urged the wives of ministers of the Reform Development Cabinet on Saturday to help the government in overcoming the current economic turmoil. Speaking in a ceremony to mark the 32nd anniversary of the organization of wives of cabinet members, Ria Pembangunan, Ainun said members should offer their help for needy people.

Australia's Cini rules the RI motocross roost

Australia's Cini rules the RI motocross roost BOGOR, West Java (JP): Adam Cini of Australia outwitted local riders by capturing the 125cc and 250cc titles on his Indonesian motocross championships debut at the Lido circuit here on Sunday. Cini, riding a Honda, showed his mastery in the 250cc category as he led the pack of struggling local contenders from start to finish.

Dayak, Madurese relations still tense

Dayak, Madurese relations still tense MENJALIN, West Kalimantan (JP): "Dayaks are just like bees. Disturb one of them and the whole nest will react," explains one Chinese-Indonesian in Sei Pinyuh, some 50 kilometers north of the provincial capital, Pontianak. This indigenous Kalimantan tribe makes up some 41 percent, or 1.6 million people, out of the province's population of four million.

Govt seen printing more money to recapitalize banks

Govt seen printing more money to recapitalize banks SEMARANG (JP): Economist Sri Mulyani Indrawati predicted Saturday that the government would have no other choice but to print more money to recapitalize ailing banks. The University of Indonesia lecturer said the government's decision to help recapitalize banks with capital adequacy ratios of between minus 25 percent and plus 4 percent would only be possible through deficit financing by printing money.

Where to go in Jakarta:

Where to go in Jakarta: Exhibitions * Painting Exhibition: Bias-Bias Akuarel, at the Hilton Executive Club, Jl. Gatot Subroto, South Jakarta, 10 a.m. to 9 p.m., until Oct. 9. * Painting Exhibition: Ungkapan Dunia-Dalam, by Nasirun and Pupuk DP., at Galeri Santi, Jl. Benda No. 4, South Jakarta, (Phone: 7806079), 9 a.m. to 6 p.m., until Oct. 15. * Painting Exhibition: Works of Jan Mintaraga, at Plaza Exim Penthouse, 31st floor, Jl. Gatot Subroto Kav. 36-38, South Jakarta, 9 a.m.

Govt limits rattan exports

Govt limits rattan exports JAKARTA (JP): A new regulation has limited exports of processed rattan and sawn timber in a bid to protect local companies. Only designated types of processed rattan can be exported under a decree issued by Minister of Trade and Industry Rahardi Ramelan last week. The Ministry of Forestry and Plantations will also set a yearly export quota to ensure exports would not threaten the environment and natural resources, the decree said.

More retired servicemen join Megawati's PDI camp

More retired servicemen join Megawati's PDI camp JAKARTA (JP): As the Megawati Soekarnoputri faction of the Indonesian Democratic Party (PDI) continues to prepare for its planned party congress in Bali, more retired Armed Forces (ABRI) officers and national figures have joined and pledged their support for the ousted leader.

Manila helps sugar industry

Manila helps sugar industry BACOLOD CITY, Philippines (DPA): The Philippine government will spend some 40 billion pesos (US$909 million) for a five-year program to rehabilitate its ailing sugar industry. "We have launched a modernization plan for the sugar industry. This is intended to ensure that in a few years' time, the sugar industry will be able to provide the sugar requirements of our country and there will be no need for us to import," said President Joseph Estrada.

Officials warn Jakartans against tempting thieves

Officials warn Jakartans against tempting thieves JAKARTA (JP): Governor Sutiyoso and City Council Speaker Edy Waluyo warned Jakartans on Friday not to make ostentatious displays of wealth in public areas due to a growing number of violent robberies in the capital. Wearing precious jewelry, for instance, should be temporarily avoided since it could lure criminals, who may use violent methods to extract valuables during this time of hardship, they said.

Tycoon tells graduates to find jobs in villages

Tycoon tells graduates to find jobs in villages JAKARTA (JP): Business tycoon Ciputra told fresh university graduates on Saturday to seek jobs in villages and areas outside Java as many of those places were less seriously affected by the severe economic crisis.

Nichimen to import RI logs

Nichimen to import RI logs OSAKA (Nikkei): Nichimen Corp. will resume importing logs from Indonesia, company sources said Friday, according to The Nihon Keizai Shimbun Saturday morning edition. The transaction will be the first Japanese trading firm to do so in 13 years, the newspaper said. In compliance with International Monetary Fund demands for economic liberalization, Jakarta has cut its export duty on raw lumber to 30 percent and allowed local firms to export.

Will we still need overland phone line in future?

Will we still need overland phone line in future? By Zatni Arbi JAKARTA (JP): Even today, getting a new phone line from our PT Telkom can be as difficult as giving the cat a full bath. The installation cost may have dropped significantly in the past few years and the services have improved a lot, but comparing the quality and the availability of our telephone services with our envied neighbor Singapore is like contrasting a bajaj motorized pedicab and a BMW C1.

Wiranto promises new ABRI style

Wiranto promises new ABRI style JAKARTA (JP): The Armed Forces (ABRI) celebrates its 53rd anniversary on Monday by taking a hard look at its image, pledging solutions to some rights violations, and pleading against being seen as "cruel murderers and destroyers" who inflicted suffering on people. Armed Forces Commander Gen. Wiranto said in a media briefing on Sunday that "history has placed ABRI at a strategic turning point...

Rp 13.5b paid by social security

Rp 13.5b paid by social security TANGERANG (JP): The local office of state social security agency PT Jamsostek has paid out Rp 13.51 billion to 2,649 members in the first nine months of the year, its chief said on Friday. Salim R.H. Toha said the amount was much higher than the previous year, without disclosing figures for 1997. Recipients were people recently dismissed by their companies in the continuing crisis.

ASEAN to hasten tariff cuts

ASEAN to hasten tariff cuts MANILA (Reuters): Members of the Association of South East Asian Nations (ASEAN) are planning to hasten economic integration and tariff cuts on 3,000 products to spur trade within the crisis-hit region, a senior Philippine official said on Friday. "The ASEAN countries will bring to the meeting a list of products which they will put on the acceleration mode," Philippine Trade and Industry Assistant Secretary Edsel Custodio said at a news conference.

Bulog to auction wheat stocks to private firms

Bulog to auction wheat stocks to private firms JAKARTA (JP): The State Logistics Agency (Bulog) will auction about 900,000 metric tons of wheat flour from its stocks to private companies following the removal of the government's subsidy on the commodity. Bulog's acting chairman Rahardi Ramelan said Friday the wheat flour would be sold to the highest bidders.

Are there alternatives to ABRI's dual function?

Are there alternatives to ABRI's dual function? By Aleksius Jemadu BANDUNG (JP): As public criticism mounts against the Armed Forces' (ABRI) socio-political role, it is worth looking into alternatives to its current dual function policy. In celebrating its 53th anniversary on Monday, ABRI is particularly challenged to rethink its political role so that it might not appear as an obstacle to the overall process of democratization.

Death toll in E. Java killing may rise to 100

Death toll in E. Java killing may rise to 100 JAKARTA (JP): The death toll of murdered people in East Java's mysterious killings may soon rise to more than 100, given reports that eight people have been found dead in similar circumstances in Jember regency. Ninety-three victims have been confirmed in Banyuwangi regency since August. In September it was also reported that similar killings took place on Madura, an island off East Java -- where Antara said "a number of people" had been killed.

ABRI should drop its political role

ABRI should drop its political role As Indonesia celebrates the 53rd anniversary of its Armed Forces (ABRI) today, political sciences lecturer Mochtar Mas'oed of Gadjah Mada University in Yogyakarta stresses the necessity to realign the political role of ABRI to accelerate the democratization process in the country. Question: Demands are increasing for ABRI to reduce its sociopolitical role, while tension is mounting because of increased rioting and crime rates. How do you see this problem.?

Stock market set to remain bearish

Stock market set to remain bearish JAKARTA (JP): Stock prices in the local market are expected to plummet further this week in line with the global market's bearish trend. The rupiah, however, is likely to continue gaining more leverage with the slight improvement in the country's monetary indicators. Currency dealers estimated on Friday that the rupiah would most probably hover above the 10,000 level against the U.S.

Police arrest three alleged Ecstasy dealers

Police arrest three alleged Ecstasy dealers JAKARTA (JP): Police arrested three alleged members of a drug- dealing ring early on Saturday and confiscated 2,867 Ecstasy pills, 150 grams of amphetamine-derivative shabu-shabu, two drug processing machines and Rp 390 million (US$35,454) in cash. City police detectives chief Col. Gories Mere, who led the raid, identified the suspects as Agung Siswanto alias Aliong, 42; Lee Men Cung alias Erwin, 40, and Santoso alias Asen, 24.

Bambang says inflation rate will drop sharply

Bambang says inflation rate will drop sharply WASHINGTON (Dow Jones): Indonesian Finance Minister Bambang Subianto said Friday Indonesia's rate of inflation will drop sharply in coming months and that since June the base money supply, Indonesia's key monetary indicator, has shown no growth. Bambang's comments were in the text of speech to be delivered at a conference hosted by the Brookings Institute and the Harvard Institute for International Development.

Govt urged to give income supplement

Govt urged to give income supplement JAKARTA (JP): The government should provide an income supplement to the needy, instead of subsidized food staple, in a bid to encourage diversification of staple foods, agriculture analysts suggested on Sunday. Bungaran Saragih from the Bogor Institute of Agriculture said the current policy of a price subsidy hampered food diversification efforts, especially for rice, because it kept prices of rice relatively cheap compared to other foodstuffs.

Lubricant producers against import freedom

Lubricant producers against import freedom JAKARTA (JP): The Association of Indonesian Lubricant Producers (Aspelindo) has expressed concern over the government's plan to ease restrictions on lubricant imports. The association said the import liberalization would not only hurt local producers but also consumers. "Aspelindo supports a free market idea for lubricant trading provided that it is carried out in the spirit of protecting the national interest.

Medan students protest by hanging themselves

Medan students protest by hanging themselves MEDAN (JP): Fourteen students at St. Thomas Catholic University used a novel, albeit very dangerous, way to protest what they perceived as the government's sluggish handling of the economic crisis. They hanged themselves until they passed out. If the government "failed to respond appropriately", one student threatened, he would immolate himself. The students hung thick ropes from the third floor of their school building on Jl.

Opposition voiced to plan to relocate brawling residents

Opposition voiced to plan to relocate brawling residents JAKARTA (JP): Criminologists disagree with a city administration idea to relocate communities stricken by chronic outbreaks of violence between rival groups. Speaking to The Jakarta Post on Saturday, criminologists Mulyana W. Kusumah and Yohanes Sutoyo of the University of Indonesia argued that such a move would not solve chronic neighborhood clashes.

McDonald's workers leave for Kuwait

McDonald's workers leave for Kuwait JAKARTA (JP): Thirty-nine employees and managers of McDonald's Indonesia left for Kuwait on Saturday to work at McDonald's Kuwait. McDonald's Indonesia president Bambang N. Rachmadi said the workers had been trained and had worked for two years at his outlets. "The sending of the workforce overseas shows that Indonesian workers are of the same quality as their counterparts from other countries," Bambang said.

Habibie mulls APEC attendance: Paper

Habibie mulls APEC attendance: Paper BANGKOK (Agencies): Indonesian President B.J. Habibie was quoted on Sunday as saying he was "very concerned" about the reported treatment of sacked Malaysian minister Anwar Ibrahim and would have to consult the House of Representatives on whether to attend November's summit in Kuala Lumpur of Asian and Pacific nations.

Police arrest hashish 'mafia'

Police arrest hashish 'mafia' LHOKSEUMAWE, North Aceh: Police here arrested eight people with suspected links to a hashish syndicate and confiscated around 32 kilograms of hashish in a raid on Saturday. Local police chief Lt. Col. Iskandar Hasan said the evidence comprised four kilograms on Saturday night, 20 kgs Tuesday night and another eight kgs in the Bireuen area also on Tuesday night. The suspects were identified as residents of Aceh Besar and south Aceh and in their 20s and early 30s.

Corruption in Indonesia

Corruption in Indonesia While The Jakarta Post articles of Mr. Jeffrey A. Winters, U.S. Northwestern University professor, and author, Mr. Sri Pamoedjo Rahardjo, former regional development bank officer, Indonesian World Bank country director, Mr. Dennis de Tray, and others (i.e. the letter written by Suharsono Hadikusumo concerning Finance Ministry corruption practices, in the Sept.

Investigating Soeharto's wealth

Investigating Soeharto's wealth The government, i.e. the Attorney General's office, has started a probe into former president Soeharto's wealth, but I think the method being used is very sluggish. Apparently the government is not sufficiently serious about this matter. I would propose the following for scrutiny of the matter: a. An independent committee consisting of prominent figures and experts from the community should assist the Attorney General.

Student plan to topple Habibie condemned

Student plan to topple Habibie condemned JAKARTA (JP): Politicians, religious leaders and observers expressed alarm at the weekend over the stated support of the National Front -- an association of retired generals, officials and ex-Golkar leaders -- for student activists' 40-day campaign to force President B.J. Habibie to resign.

BMW to make Thailand its regional hub

BMW to make Thailand its regional hub BANGKOK (AFP): German automaker BMW AG announced plans Saturday to build cars in Thailand, with the aim of turning the country into its regional manufacturing hub. Executives from the firm officially launched two new companies to make and export cars, but warned that the project's future depended on further trade liberalization in the region.

Madurese toil for a better lot in life

Madurese toil for a better lot in life SIANTAN, West Kalimantan (JP): Here is an ordinary town on the bank of the Kapuas river, the main business artery in the province. It is a town around which the Madurese -- who number 80,000 of the province's four million inhabitants -- are mostly concentrated. There are 6,000 of them in the town itself. In the Pontianak mayoralty, of which Siantan is a subdistrict, there are around 500,000 people.

Number of poor people in Nusa Tenggara rises

Number of poor people in Nusa Tenggara rises JAKARTA (JP): The number of poor people in East and West Nusa Tenggara is on the rise, but distribution of cheap rice to them is pending a decision from the National Family Planning Development Board, an official has said. Provincial logistics agency (Dolog) distribution manager Bakri said on Saturday that the government had provided 188,156 families 10 kilograms of rice at a subsidized price of Rp 1,000 from January to May this year.

Banks' reserves at BI jumps to Rp 19.79t

Banks' reserves at BI jumps to Rp 19.79t JAKARTA (JP): Commercial banks' deposits with Bank Indonesia (BI) expanded by Rp 1.3 trillion (US$120 million) to Rp 19.79 trillion in the week ending Sept. 30. The central bank said in its latest weekly report that the increase reflected an improvement in the liquidity of the country's commercial banks.

Upholding the law

Upholding the law Investigations into practices of corruption, collusion and nepotism (KKN) in the judiciary is of the greatest importance. KKN was suspected of being widely practiced in this institution many years ago, long before anyone dared to speak up openly about investigating Soeharto's wealth. Added to such practices were various inconsistencies prevalent in the judiciary.

ABRI at 53 years old

ABRI at 53 years old ABRI, the Armed Forces, celebrates its 53rd anniversary today against a backdrop of declining public popularity. The new reality is that people are extremely disappointed with the excessive implementation of ABRI's right, bequeathed to it by the Soeharto regime, to intervene in all national activities without limit or supervision. The privilege has made ABRI believe it can do no wrong. Never before has our military appeared in the limelight with such a frightful face.

Whereabouts of missing activists still a mystery

Whereabouts of missing activists still a mystery JAKARTA (JP): Mystery remains over the whereabouts of 14 missing activists because the Armed Forces (ABRI), which has been battered by revelations of alleged serious human rights abuses, can no longer afford the disclosure of any past wrongdoing, according to a member of the Independent Commission for Missing Persons and Victims of Violence (Kontras).

Bali to have tourist tabloid

Bali to have tourist tabloid DENPASAR: The Bali Post is planning to publish an English- language tabloid called Bali Travel News by the end of this year. I Gde Wirata, chief of the Indonesian Hotel and Restaurant Association (PHRI) chapter in Bali, said the tabloid would provide access to information about tourist attractions and transportation on the tourist island.

Kadin urges foreign creditors to be forgiving

Kadin urges foreign creditors to be forgiving JAKARTA (JP): Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Aburizal Bakrie said on Saturday that providing debt forgiveness to the country's indebted private sector would be the best way to settle some US$64 billion in overseas debts.

History of French comics no laughing matter

History of French comics no laughing matter By Izabel Deuff JAKARTA (JP): Foreign comic strips are quite popular here. Both children and adults enjoy reading them, and it is no secret that most people prefer foreign comics to local ones. Three of the favorite comics are from France: Asterix, Lucky Luke and Tintin (whose hairstyle has become a fashion here).

Tracking wealth

Tracking wealth Those seriously (as opposed to farcically) investigating the wealth of the New Order president, his family, ministers, other officials, and associates, and of his successor and his family, ministers, other officials, and associates, should send someone to Manila to talk to those who were involved in tracking down Ferdinand Marcos' wealth. The Filipinos should be able to advise on the best and most expeditious ways to locate the hidden assets of the Indonesians.

Clouds of unrest still hang over West Kalimantan

Clouds of unrest still hang over West Kalimantan West Kalimantan has drawn national attention twice this year. In May, a significant number of Chinese-Indonesians fleeing Jakarta's May turmoil sought shelter in the province, known to be traditionally accepting of them despite tensions between other dominant ethnic groups there. Then in early September, widespread rice pillaging broke out. The Jakarta Post reporter Sugianto Tandra visited West Kalimantan's capital, Pontianak, from Sept.

Liquidity matters in the end

Liquidity matters in the end By Eddy Soeparno JAKARTA (JP): It is now clear that relying on foreign money has its costs. The Asian miracle, characterized by the economic boom in the region over the past two decades was undoubtedly nurtured by unprecedented flows of capital. Even U.S. Federal Reserve chairman Alan Greenspan confessed in retrospect that "it is clear that more investment monies flowed into these economies than could be profitably employed at reasonable risk".

Too broke to renovate school

Too broke to renovate school TANGERANG (JP): Hundreds of students at state elementary school SDN 5 in Teluk Naga district here have been forced to attend school in much smaller classrooms over the last two years following the collapse of three of the school's six classrooms. School principal Sri Haryati said that she was forced to divide the first, second and third year classrooms into two to enable all the students to continue learning.

UPS expects larger share in courier market

UPS expects larger share in courier market JAKARTA (JP): U.S.-based express parcel company United Parcel Service (UPS) is targeting 35 percent of Indonesia's market share next year despite its relatively recent entry into the country. UPS Indonesia president Jeff Fairbairn said on Friday the company currently handled about 19 percent of the country's parcel deliveries.

Journal provides medical assistance

Journal provides medical assistance JAKARTA (JP): Intisari monthly provided medical services on Saturday to 500 families from Palmerah subdistrict and its surrounding area in Central Jakarta. Held at the Bentara Budaya building complex on Jl. Palmerah Selatan, it arranged for treatment by three doctors and 20 paramedics from event cosponsor Harum Hospital.

Donations to poor students

Donations to poor students JAKARTA (JP): Students at the Gandhi Memorial International School handed over on Friday a donation of Rp 20 million (US$1,800) to poor students under the National Charity Movement (GN-OTA) to enable them to continue their studies. The donation was given in the form of a check to H.H. Siagian of the movement in a ceremony held in conjunction with the celebration of the 129th anniversary of Mahatma Gandhi's birth at the school complex in Ancol Barat, North Jakarta.