Indonesian Political, Business & Finance News

Archive: 11 February 1998

52 articles found

Central banks to meet in Bali

Central banks to meet in Bali JAKARTA (JP): Central bank governors of the Association of Southeast Asian Nations (ASEAN) will hold an annual meeting in Bali this week. An official of Bank Indonesia said here yesterday that the three-day meeting, which will be held from Friday through Monday would be the 33rd such annual gathering.

The yen rises on the wings of the rupiah

The yen rises on the wings of the rupiah LONDON (AFP): The yen rose early yesterday in the light of overnight gains in South East Asian currencies, notably the Indonesian rupiah, and the pound fell after the publication of lower-than-expected inflation data. The dollar fell to 123.27 yen from 124.08 from 123.53 in Tokyo. Against the mark, the dollar fell to 1.8109 marks from 1.8161.

Tycoons must donate

Tycoons must donate From Pikiran Rakyat Media reports on the country's monetary crisis are indeed alarming. Especially now that the crisis has caused the prices of the nine staple daily necessities to soar, with the result that people are queuing to buy staples supplied by the logistics depots at normal prices. This phenomenon reminds one of the situation in the 1960s, when the then president, Sukarno, announced the resolve to be self-supporting.

Strong reactions greet Lee's Asia crisis comment

Strong reactions greet Lee's Asia crisis comment JAKARTA (JP): Former Singapore prime minister Lee Kuan Yew's remark that Asia's financial crisis could worsen if the market was uncomfortable with Indonesia's next vice president was met with strong reactions here yesterday. The strongest reaction came from State Minister of Research and Technology B.J. Habibie, one of several figures who covet the vice-presidential post.

Thailand to donate 5,000 tons of rice

Thailand to donate 5,000 tons of rice JAKARTA (JP): Thai Foreign Minister Surin Pitsuwan said yesterday his government would donate 5,000 tons of rice and one million baht (US$20,000) worth of medicines to Indonesia as a token of solidarity. The minister said he hoped his government's relief aid would help reduce the sufferings of the Indonesian people.

Industry groups oppose scrapping of 3-in-1 system

Industry groups oppose scrapping of 3-in-1 system JAKARTA (JP): The city administration has met with opposition following its announcement that car stickers would replace the three-in-one traffic regulation after next month's General Session of the People's Consultative Assembly (MPR). The head of Indonesian Transportation Society, Suyonodikun, and an Indonesian Consumers Foundation (YLKI) executive, Agus Pambagio, called Monday for improvements to be made to the current system.

Currency peg plan worth exploring, says IMF official

Currency peg plan worth exploring, says IMF official SINGAPORE (Agencies): A senior official of the International Monetary Fund (IMF) said here yesterday that a proposal to peg the Indonesian rupiah to the U.S. dollar to ease volatility was "worth exploring." Kunio Saito, director of the Asia-Pacific regional office of the International Monetary Fund (IMF), told journalists on the sidelines of a trade union conference here that stability should be the primary concern.

S&P downgrades Matahari

S&P downgrades Matahari SYDNEY (Reuters): Standard and Poor's Corp said yesterday that it downgraded its rating on P.T. Matahari Putra Prima to CC from CCC, with the rating remaining on creditwatch with negative implications. S&P said the downgrade was "the result of Matahari being highly vulnerable to nonpayment of its outstanding debt obligations".

Spotlight

Spotlight Photo A: Chinese JP/arh FOND FAREWELL: Chinese Ambassador to Indonesia Lhou Gang (center) and his wife talk with Minister of Tourism and Telecommunications Joop Ave. The ambassador hosted a farewell party at the new Chinese Embassy building in Kuningan, South Jakarta, Monday. Photo B: Regent Regent MAN ON A MISSION: General manager of the Regent, Christoph Schmidinger (left), greets World Bank President James D. Wolfensohn. The latter began a two-day visit to Jakarta last Tuesday.

Singapore hotel occupancy, room rates falling

Singapore hotel occupancy, room rates falling SINGAPORE (Reuters): Singapore hotels are suffering from Southeast Asia's financial crisis and the dense smog which blanketed parts of the region at the end of 1997, the Singapore Tourist Board (STB) said yesterday. The STB said in a statement occupancy rates of Singapore hotels fell to 79.5 percent last year, from 82.2 percent in 1996.

Japanese bank proposes debt-servicing fund

Japanese bank proposes debt-servicing fund TOKYO (Agencies): Bank of Tokyo-Mitsubishi Ltd (BTM) said yesterday it was proposing to the Japanese and Indonesian governments that they set up a fund to allow Indonesian firms to exchange the rupiah for the U.S. dollar at a much stronger rate than the current level. BTM is one of Japan's largest creditors to Indonesia.

SEAG consortium's report due today

SEAG consortium's report due today JAKARTA (JP): The 19th SEA Games consortium has been asked to submit its accountability report on its management of the Games budget to State Minister for Youth Affairs and Sport Hayono Isman today. Imam Suyudi, the minister's assistant, said Monday the report would be submitted at a meeting in the minister's office. "In the meeting, we will listen to the consortium's report on whether it had any problems with funding or within the consortium.

Police arrest oil hoarder

Police arrest oil hoarder SEMARANG: Police here have detained a man on charges of hoarding 1,386 drums and 8,335 boxes of lubricants worth hundreds of millions of rupiah. "The place was raided after a tip-off by local residents," Semarang police chief Lt. Col. Soenarko told reporters yesterday. The Central Java authorities suspect the hoarder, identified only as Sn, aged 40, also sold tainted lubricants because they also found empty cans and coloring substances.

Crude palm oil export ban will continue: Minister

Crude palm oil export ban will continue: Minister JAKARTA (JP): The government has extended its export ban on crude palm oil (CPO) until a yet to be decided time, Minister of Industry and Trade Tunky Ariwibowo has announced. Tunky said Monday night the export ban would remain until the market price of cooking oil began to stabilize. But he did not indicate when the price was likely to be stabilized again.

Golkar affiliates told not to name VP candidates

Golkar affiliates told not to name VP candidates JAKARTA (JP): President Soeharto moved yesterday to curb growing speculation over who might be the next vice president by prohibiting organizations affiliated to the ruling Golkar from naming any names. In his capacity as Golkar's chief patron, Soeharto told Mien Sugandhi, the chairman of Musyawarah Kekeluargaan Gotong Royong (MKGR) -- one of the organization's affiliates, that they might, however, put forward criteria for the next vice president.

Stock Exchange

Stock Exchange Stock prices on the Jakarta Stock Exchange (in rupiah) on Feb.10, 1998: Shares Close Change Trading Volume ------------------------------------------------------------ Ades Alfindo 700 0 0 AHAP Insurance 350 0 0 Alter Abadi 575 25 15,000 Alumindo Light Metal 375 -25 3,481,500 Alumindo Perkasa 275 0 15,000 Aneka Kimia Raya 700 0 1,426,500 Aneka Tambang 1,800 75 14,612,500 Anwar Sierad 225 50 563,500 Apac Centertex Corp.

Pontianak's mandarin growers feel the big squeeze

Pontianak's mandarin growers feel the big squeeze By R. Masri Sareb Putra SAMBAS, West Kalimantan (JP): Those unfamiliar with West Kalimantan often assume its famed Pontianak mandarin oranges really do come from the provincial capital. But the heart of the sector once beat in Sungai Raya and Tebas subdistricts in Sambas district, 243 km to the north of Pontianak. Sambas was formerly one of the largest contributors to West Kalimantan's agricultural success.

Dollar-peg proposal for rupiah draws reactions

Dollar-peg proposal for rupiah draws reactions SINGAPORE (AFP): Most Southeast Asian bourses reacted positively yesterday to proposals for Jakarta to adopt a currency board system pegging the rupiah to the dollar, with Singapore gaining 3.8 percent on the news. Ironically, Jakarta share prices lost 2.2 percent as news of the proposal sent the rupiah to around 7,400 to the dollar in late Asian trading, from 9, 600 on Monday, making blue chips more costly for foreign investors.

Pegged rupiah draws mixed reviews

Pegged rupiah draws mixed reviews By Roberto Coloma SINGAPORE (AFP): A radical proposal to institute a peg for the Indonesian rupiah drew mixed reviews from dealers and economists yesterday, but market players took no chances and dumped U.S. dollars for regional currencies. Indonesian President Soeharto, vowing to "kill" speculators attacking his country's currency, dropped hints Monday that he was looking at a Hong Kong-style peg, and market talk put the rate at 5,000-6,000 rupiah per dollar.

Queljoe quits Lippo

Queljoe quits Lippo JAKARTA (Reuters): The American president of Indonesia's Lippo Securities has resigned and the position is currently vacant, a company official said yesterday. Charles L. de Queljoe was due to leave for the United States on Tuesday, said Jos Parengkuan, a Lippo Securities director who added that Queljoe had resigned at his own request and was expected to take up other appointments in the group.

Companies offer way out of monetary crisis

Companies offer way out of monetary crisis By C.J. de Koning JAKARTA (JP): Indonesian companies until recently were the engine of Indonesia's economic growth. They produced, they exported and imported. They employed millions of Indonesian workers, who then had an income to feed their families and dependents in the countryside. The companies also generated a substantial part of the Indonesian government's tax revenues. Now the company sector is in trouble.

Stronger rupiah boosts other Asian currencies

Stronger rupiah boosts other Asian currencies SINGAPORE (Reuters): Most Asian currencies posted robust gains on Tuesday as mounting speculation that Indonesia was on the verge of adopting a currency board system spurred hasty dollar sales.

Military denies orchestrating unrest

Military denies orchestrating unrest JAKARTA (JP): The Indonesian Armed Forces (ABRI) opened its annual leadership meeting yesterday deflecting allegations that it was orchestrating unrest for political or tactical gain or to divert attention from the country's economic turmoil. "That's untrue," spokesman Brig. Gen. A. Wahab Mokodongan told reporters when asked if the unrest was a ploy to divert attention from the economic crisis and next month's presidential election.

TV today

TV today TVRI 2:00 p.m. News: Berita 14 2:30 My Country 2:35 TV Series: Big Brother Jake 3:10 Indonesian Children 3:35 Talk Show: Kotak Pos 4:00 Regional News 4:30 Education Quiz: Cepat Tepat 5:10 Film: Road to Avonlea 6:00 News: Lintasan Berita 6:05 My Beloved Country 6:15 Village Program 6:30 TVRI News 6:53 Music 7:00 Evening News 7:35 Entrepreneurship Program: Mitra Kita 8:05 Entertainment 8:30 TV Drama: RT 09 9:00 World News 9:30 Music: Gebyar Musik 10:30 Late News 10:40 TV Drama: Pulang...

Currency peg reports cause rupiah to soar

Currency peg reports cause rupiah to soar JAKARTA (JP): The rupiah surged against the U.S. dollar yesterday on reports that the government might peg the currency to the greenback. Currency dealers said that spot rupiah closed at 7,400/7,600 against the U.S. dollar from its opening of 8,700/8,900 in the morning trading session. Yesterday's close was far higher than the previous day's close of 9,600.

GM keen on stake in Proton

GM keen on stake in Proton KUALA LUMPUR (AFP): U.S.-based auto giant General Motors Corp. is keen to take a stake in Malaysian carmaker Perusahaan Otomobil Nasional Bhd. (Proton), a newspaper reported yesterday. General Motors chief economic specialist Mustafa Mohaterem was quoted as saying in Detroit that the global chances of Proton, currently affiliated with Japan's Mitsubishi Motors Corp., would be enhanced by an equity partnership.

Beware of floods: Official

Beware of floods: Official JAKARTA (JP): A city administration official warned Jakartans yesterday to prepare themselves for possible major floods. Toha Reno, a senior city public order office official, said some flood-prone areas had already been inundated due the frequent rainfall over the past week. "It depends on land height. If certain areas are surrounded by tall buildings, the lower areas will definitely be hit by flood," Toha said.

Bomb hoax plotter at large

Bomb hoax plotter at large MEDAN: The police still have no clue as to who left a hoax bomb in a Bank Danamon automatic teller machine booth at Polonia Airport here Monday, police said yesterday. "The authorities have no one to suspect yet," spokesman for the local Bukit Barisan regional military command Lt. Col. Agus Ramadhan said. The hoax bomb triggered panic at the airport as dozens of police and troops were called in to cordon off the location and diffuse the "bomb".

Military to hand over photographs of Yorris

Military to hand over photographs of Yorris JAKARTA (JP): City military command says it has incriminating evidence about the alleged gambling activities of Yorris Raweyai, a Golkar representative in the People's Consultative Assembly (MPR). The command spokesman, Lt. Col. DJ. Nachrowi, said yesterday the personnel who detained Yorris during a recent raid on entertainment centers would hand over pictures which allegedly depicted Yorris gambling prior to his arrest.

Local comics try to draw a better image

Local comics try to draw a better image By Rita A. Widiadana JAKARTA (JP): Local comics, dogged by damning tags as vulgar and unsophisticated, have their work cut out for them in winning over readers. Lack of public appreciation, talented artists, professionalism and innovative ideas are major obstacles, Minister of Education and Culture Wardiman Djojonegoro said when opening the first exhibition devoted to the works here last Friday.

'Total reform' necessary to heal crisis

'Total reform' necessary to heal crisis Indonesia is witnessing growing demands for economic and political reform as the best way to overcome the economic crisis. Political analyst Amien Rais, who is also the chairman of the 28- million-strong Moslem organization Muhammadiyah, proposes a platform for the reform. Question: Many have speculated the current economic crisis is part of a conspiracy engineered by certain parties. Do you agree? Answer: We cannot rule out such possibilities.

Export companies face L/C problems

Export companies face L/C problems JAKARTA (JP): Export companies said yesterday local banks still required them to pay high security deposits before issuing letters of credit for imports despite central bank guarantee. The chairman of the Indonesian Footwear Association, Anton J. Supit, told members of the House of Representatives yesterday that banks required companies to pay a security deposit worth the total value of the letters of credit (L/Cs).

Jakarta reforms restoring confidence: IMF

Jakarta reforms restoring confidence: IMF SINGAPORE (Reuters): Indonesia's economic reforms are a move in the right direction and are restoring market confidence, International Monetary Fund (IMF) director Kunio Saito said yesterday. He said that in November and December, the reforms the IMF demanded as conditions for a $43 billion rescue package for Indonesia proved inadequate.

Conversion Rates

Conversion Rates Jakarta (JP): Bank Ekspor Impor Indonesia's (Bank Exim) indicative conversion rates on Feb.10, 1998: Buying Selling Rp Rp U.S.

Latest bomb hoaxes at bank building and bus terminal

Latest bomb hoaxes at bank building and bus terminal JAKARTA (JP): Fresh bomb hoaxes continued to hit the city yesterday, keeping police busy sweeping a number of places where bombs were reportedly planted. City police spokesman Lt. Col. E. Aritonang said a few places in South Jakarta were swept for bombs after threatening phone calls were received by the Danamon Aetna building on Jl. Sudirman and the Lebak Bulus bus terminal. "We checked the places and found nothing there," said Aritonang.

Bomb explodes in Tarakan

Bomb explodes in Tarakan SAMARINDA: Bombs dating from World War II exploded yesterday in Tarakan, East Kalimantan, shocking local residents. Tarakan military chief Lt. Col. Soekarno, said that residents were jolted awake by a series of explosions. The sounds came from a burning forest near the popular tourist resort of Amal beach. "We believe that the source of the explosion was old land mines or artillery mortars," he told Antara.

Pegging the rupiah

Pegging the rupiah The economic crisis facing the nation as a result of volatility and weakness in the rupiah exchange rate demonstrates how fundamental a stable currency is to a healthy and growing economy.

Sanyo raises RI prices

Sanyo raises RI prices TOKYO (Reuters): Sanyo Electric Co Ltd said on Tuesday it raised wholesale prices of its products in Indonesia by 50 percent in January in line with rising costs of importing components and materials caused by the weakened Indonesian currency. Jakarta-based Sanyo Industries Indonesia, owned 65 percent by Sanyo and the rest by local investors, cut production by 20 percent in mid-January, a Sanyo spokesman said.

Nine Filipinos deported

Nine Filipinos deported MANADO, North Sulawesi: Nine Filipinos have been repatriated by the provincial immigration office here following their arrest for illegally entering northern Maluku's waters. The head of North Sulawesi's justice office, Freddy Gerung, said yesterday the nine Filipinos were taken to Bitung port in late January before being deported, Antara reported. It was reported they entered Maluku's waters where they got stranded near an island in Ternate regency.

MAS to defer jet delivery

MAS to defer jet delivery KUALA LUMPUR (AFP): Malaysia Airline System Bhd. (MAS) is to defer taking delivery of its new Boeing aircraft due in 1998 and 1999 amid a declining load factor and currency fluctuations, a report said yesterday. Malaysia Airline executive vice-president (group finance) S. Suppiah said the company was currently talking to some European and American airline companies on possible swaps in the delivery slot.

MUI calls for 'jihad' to protect country

MUI calls for 'jihad' to protect country JAKARTA (JP): The Indonesian Ulemas Council concluded its three-day congress by calling on Moslems to wage a jihad (holy war) alongside the government and the military to protect the country from political and economic pressures. "As the majority in the population, we are obliged to maintain the nation's unity and protect it from irresponsible groups and foreign conspiracies," chairman Hasan Basri said at the closing ceremony here yesterday.

Man tried for smuggling pistol

Man tried for smuggling pistol TANGERANG (JP): A former waiter was indicted at the Tangerang District Court yesterday for attempting to smuggle a pistol into the country from the United States. Prosecutor Syamsudin said Nuri Samsudin, 30, of Taman Bunga housing complex in Cibubur, East Jakarta, was arrested on Nov. 26. Syamsudin said the former waiter at a restaurant in Florida was arrested when he arrived at Soekarno-Hatta International Airport.

Wiranto calls for alertness over rumors

Wiranto calls for alertness over rumors BANDUNG (JP): Army Chief of Staff Gen. Wiranto has called on the public to be alert for rumors spread by people seeking to instigate unrest and divide people. "If need be, treat those rumors as you would rubbish," he said here Monday. "Today's (economic and political situation) is not so bad, but there are groups who are trying to circulate rumors to divide people. "Those rumors are garbage," he said.

Habibie reprimands LIPI staff

Habibie reprimands LIPI staff JAKARTA (JP): State Minister of Research and Technology B.J. Habibie has reprimanded 19 researchers of the National Institute of Sciences who issued a statement last month demanding a new national leader. Habibie said yesterday the researchers were guilty of using the institute and its facilities for an activity unrelated to their jobs. "People who carry out routine jobs should not use their offices or their facilities for other business.

RI political uncertainty could affect region

RI political uncertainty could affect region MELBOURNE (Reuters): A leading investment bank said on Tuesday that political uncertainty in Indonesia could trigger fresh financial turmoil in Asia unless it was resolved soon. U.S.-based bank Salomon Smith Barney's Asian chief, Trevor Rowe, said investors wanted President Soeharto to unveil a clear succession plan before his current term expired next month.

Sofjan Wanandi questioned at city police HQ

Sofjan Wanandi questioned at city police HQ JAKARTA (JP): Businessman Sofjan Wanandi was questioned for at least eight hours at Jakarta Police Headquarters yesterday in connection with last month's explosion at a Tanah Tinggi apartment in Central Jakarta. City police spokesman Lt. Col. E. Aritonang said his office would review the statements of Sofjan, chairman of the widely diversified Gemala Group, before considering whether further interrogation would be needed.

ITB alumni stage rally, activists denounce violence

ITB alumni stage rally, activists denounce violence JAKARTA (JP): Twenty-five alumni of the Bandung Institute of Technology (ITB) staged a street demonstration here yesterday to demand a change in the national leadership after police barred them from holding a news conference. Separately, a group of 20 prominent human rights campaigners, democracy activists and Moslem leaders issued a joint statement urging the public to refrain from using violence to tackle the worsening economic crisis.

The fate of rupiah

The fate of rupiah I have been worried ever since the rupiah began to fall, not because I have particular need of dollars, but because the rupiah has lost its credibility as a means of exchange. Now rupiah are just like any another commodities, with a value determined at will by speculators. Initially, I believed that the worsening monetary crisis was due to a lack of confidence in the rupiah, and the ability of the government to cope with the situation.

Malaysian palm oil stock down, demand up

Malaysian palm oil stock down, demand up KUALA LUMPUR (Reuters): Malaysia could face difficulty in meeting demand for its palm oil after the first quarter of 1998 due to falling production and stock levels, industry sources and traders said yesterday. Palm oil exports from Malaysia have picked up following a sharp fall in the ringgit against the dollar, which has made the commodity attractively priced for overseas buyers, and a ban in palm oil exports by Indonesia. "Stocks are still available.

Singgih denies police have right to probe graft

Singgih denies police have right to probe graft JAKARTA (JP): Attorney General Singgih denied yesterday law enforcement agencies had agreed to allow the police to investigate corruption cases. "There's no such thing as joint investigation (of corruption by the police and my office)," Singgih told a hearing of House Commission I for security, defense, legal and information affairs.

New bank capital requirement set at Rp1t

New bank capital requirement set at Rp1t JAKARTA (JP): Bank Indonesia, the central bank, will raise the minimum paid-up capital requirement for domestic banks to Rp 1 trillion (US$125 million) from Rp 50 billion and Rp 150 billion at present to strengthen the country's banking system. Bank Indonesia Governor J. Soedradjad Djiwandono said yesterday the paid-up capital requirement would be Rp 1 trillion by the end of this year, Rp 2 trillion by the end of 1999 and Rp 3 trillion by the end of 2003.

Currency peg disadvantageous for RI: Analysts

Currency peg disadvantageous for RI: Analysts JAKARTA (JP): The establishment of a currency board system (CBS), which would peg the rupiah to a foreign currency, would be disadvantageous for Indonesia, analysts have said. Economic analysts claimed yesterday that setting up a CBS would not directly solve the alarming problems of food shortages, unemployment, troubled banks, corporate foreign debts and political uncertainty.