Indonesian Political, Business & Finance News

Archive: 16 February 1998

60 articles found

Tourist arrivals up 5% in 1997

Tourist arrivals up 5% in 1997 Jakarta (JP): Foreign tourist arrivals in Indonesia rose by 5.04 percent last year to 5.03 million visitors, below the pessimistic target of 5.3 million. Data from the Ministry of Tourism, Post and Telecommunication shows the country's foreign exchange earnings from tourism rose to US$6.62 million from $6.3 billion in 1996.

More tips on faxing directly from your personal computer

More tips on faxing directly from your personal computer By Zatni Arbi JAKARTA (JP): It is always sad to bid farewell to a good friend if you don't know how long it will be until you can see each other again. That is why I felt so desolate as I stared at the closed stores in Computer City in Glodok Plaza last week. They were dark and there was very little, if anything, left in their store display and on their shelves.

Garuda suspends flights to S'pore

Garuda suspends flights to S'pore MEDAN, North Sumatra: Garuda Indonesia has temporarily suspended its daily flights from here to Singapore and Malaysia due to a sharp decline in the number of passengers over the last few months, an official said Saturday. The Garuda sales manager for its Medan office, Arjo K. Bardijan, said the economic crisis and the rupiah's free fall against the U.S. dollar was the main reason for the drop in sales.

A long and winding road for local music industry

A long and winding road for local music industry By Helly Minarti JAKARTA (JP): Piles of cassettes and compact discs (CDs) are taken off the shelves of a music store in Central Jakarta. And, for the second time in as many months, an employee is busy replacing the price tags. The woman who owns and manages the store holds up a fax she has just received from a recording company. "See, it's up again...," she said.

TV today

TV today TVRI 2:00 p.m. News: Berita 14 2:45 Cartoon: The Big Valley 3:10 TV Drama: Kabar Terakhir Dari Sanggar 3:35 Religious Teachings: Buddha 4:00 Regional News 4:30 Documentary: Berseri Hutan Lestari 5:00 Indonesian Lesson 5:25 Variety Show 5:30 Documentary: Transmigrasi Umum 6:00 News: Lintasan Berita 6:05 Nusantara, The Beloved Country 6:15 Village Program 6:30 TVRI News 7:00 Evening News 7:35 Development Program: Lemhanas 8:00 News: Lintasan Berita 8:05 Music: Mozaik 9:00 World News 9:30...

Skepticism looms over RI's CBS plan

Skepticism looms over RI's CBS plan HONG KONG (Reuters): Asian fund managers have expressed a high degree of skepticism over proposals by Indonesia to introduce a currency board mechanism. They said Indonesia needed confidence rather than a new monetary system to shore up the rupiah, which Friday was closed at 8,000 to the U.S. dollar after hitting a record low of 17,000 last month. "Re-establishing confidence is of critical importance," said Marshall Mays, chief strategist at Nikko Securities.

Wardiman installs Asman as new UI rector

Wardiman installs Asman as new UI rector DEPOK, West Java (JP): Asman Boedisantoso Ranakusuma has replaced M.K. Tadjudin as the new rector of the University of Indonesia (UI), taking over the management of 32,600 students and a faculty of 2,561.

SE Asian bank governors ask IMF to be more flexible

SE Asian bank governors ask IMF to be more flexible BALI (AFP): Southeast Asian central bank governors urged the International Monetary Fund (IMF) Saturday to be more flexible in imposing conditions for bailouts and other aid to economies troubled by the region's currency crisis.

KL to re-evaluate peacekeeping role

KL to re-evaluate peacekeeping role KUALA LUMPUR (AP): Malaysia's Defense Ministry announced yesterday plans to re-evaluate its role with the United Nations peacekeeping mission in Bosnia at the end of June, when its mandate expires. Defense Minister Syed Hamid Albar said that Malaysia's decision to withdraw troops from the war-torn Balkan state will depend on Bosnia's military needs in June, Bernama news agency reported.

DCR downgrades the ratings of Indonesian corporates

DCR downgrades the ratings of Indonesian corporates HONG KONG (Reuters): Duff & Phelps Credit Rating Co. (DCR) has downgraded the ratings of several Indonesian entities and securities and reaffirmed its ratings on several Indonesian structured transactions. All the ratings remain on Rating Watch - Down.

Police interrogate five for stockpiling food commodities

Police interrogate five for stockpiling food commodities TANGERANG (JP): At least five warehouse owners are being interrogated by police following the finding of vast stocks of food commodities on their premises, police said yesterday. The distribution of some items -- including baby formula, cooking oil, instant noodles and flour -- began yesterday to help stabilize the soaring prices in local markets due to the shortage of stock. Tangerang Police chief Lt. Col.

New guards at ABRI

New guards at ABRI If all goes well, President Soeharto will install Gen. Wiranto as the new chief of the Armed Forces (ABRI), and Gen. Subagyo as Army chief of staff at the presidential palace today. Changes in ABRI's leadership may be as regular as clockwork, but given the military's powerful influence and its role in politics and in government, a reshuffle at the top always has great bearing and significance for the country. This time is no exception.

Hamami warns political protesters

Hamami warns political protesters JAKARTA (JP): City Police chief Maj. Gen. Hamami Nata yesterday vowed to take stern action against any groups protesting for political purposes. "If a demonstration seems to have a political motive behind it, we will charge them (protesters) based on Law No. 5/1969 which upgraded president decision No. 5/1963 on political activities.

Yangon blasts Thai labor move

Yangon blasts Thai labor move YANGON (AFP): Authorities in Myanmar have described as "pitiful" the repatriation of hundreds of their workers from Thailand and accused Bangkok of double standards. "It is rather pitiful that Myanmar nationals, legal or otherwise, once welcomed in Thailand are now being sent back home," the report in the state-run New Light of Myanmar newspaper said yesterday.

Two arrested for alleged involvment in drug ring

Two arrested for alleged involvment in drug ring JAKARTA (JP): Two men were arrested Saturday at a house in Salemba, Central Jakarta, for alleged involvement in distributing marijuana. City police spokesman Lt. Col. E. Aritonang said 10 kilograms of dried Acehnese-grown ganja were confiscated from the suspects and would be used in evidence in the case. He identified the men as Agus Maulana, 42, a driver, and Arief, 21, a student of a private technical high school. "Agus and Arief are relatives.

Argentine peso peg a tough lesson for RI

Argentine peso peg a tough lesson for RI BUENOS AIRES (Reuters): The currency system Indonesia is considering has been a resounding success in restoring economic stability in Argentina but has also contributed to some tough times. Indonesia's President Soeharto is looking to the same currency system that Argentina introduced in 1991 when it fixed the peso to the dollar to end decades of hyper-inflation and set a course for strong economic growth.

Construction of office halted

Construction of office halted SEMARANG, Central Java: Governor Soewardi agreed last week to postpone the construction of a Rp 9.9 billion (US$1 million) retired civil servants headquarters. Soewardi said he had to shelve the project indefinitely due to the current economic crisis. "We must prioritize our funds and efforts to improve people's welfare who are suffering from the crisis," Soewardi was quoted by Antara as saying.

Boeing likely to delay deliveries to Asia due to economic slump

Boeing likely to delay deliveries to Asia due to economic slump KUALA LUMPUR (Reuters): The head of Boeing Co said on Saturday that Asia's financial difficulties might delay airplane deliveries over the next three years but would have no long-term impact on the U.S. aerospace giant's business.

Love local products!

Love local products! After the launch of the "Love Rupiah" campaign, the time is now ripe to launch a "Love Indonesian Products" campaign. The theme for this could be: "Be Indonesian and buy Indonesian." Most of the products produced locally are of acceptable quality and are reasonably priced, as compared to imported merchandise. In fact, some locally made products are exported to other countries and used by foreigners.

S'pore downplays problems with KL

S'pore downplays problems with KL SINGAPORE (AP): Prime Minister Goh Chok Tong will seek a broad base of cooperation during a two-day visit to Kuala Lumpur, Malaysia's capital, according to an interview published yesterday. "I go up with a positive outlook, not to think there are problems to be solved, but how we can work together," he told the Straits Times.

ASEAN agrees to consider plan on regional currencies in trade

ASEAN agrees to consider plan on regional currencies in trade BALI (AFP): Central bank governors from five key Southeast Asian economies agreed here Saturday to form a task force to study the potential use of their currencies in intra-regional trade settlements. A statement said central bank chiefs from Indonesia, Malaysia, the Philippines, Singapore and Thailand met informally, on the fringes of an annual conference of Southeast Asian monetary authorities, to discuss the proposal.

Books and paper price

Books and paper price From Media Indonesia Indonesia's economic malaise will eventually affect the education sector. A weak currency has resulted in the price of paper soaring to beyond reasonable limits. A number of newspapers and magazines, such as Sinar and Aura have ceased publication. Book publishers face similar difficulties and it is now difficult for media proprietors to set affordable prices because of an increase in their production costs.

NYL bullish on RI's prospects

NYL bullish on RI's prospects JAKARTA (JP): Many foreign firms are set to abandon or slash the scope of their operations here due to the economic crisis and ominous rumors, but giant U.S. insurance firm New York Life (NYL) is pledging to stay.

U.S. provides funds for Atauro

U.S. provides funds for Atauro DILI, East Timor: The U.S. government has provided US$25,000 in aid to alleviate poverty in Atauro island, just north of here, a local official has said. Dili regent Domingos M.D. Soares, whose area of jurisdiction includes Atauro, said Wednesday that the money would be used for income-generating projects. Soares said the local administration was still deciding what projects would be appropriate.

Telkom to build more phone lines but below set target

Telkom to build more phone lines but below set target JAKARTA (JP): State-owned telecommunications operator PT Telkom said over the weekend that the company and its partners would install at least 1.4 million telephone lines this year but would still not achieve the government's five-year target.

NU finds itself in the midst of change

NU finds itself in the midst of change Tradisionalisme Radikal, Persinggungan Nahdlatul Ulama - Negara (Nahdlatul Ulama, Traditional Islam and Modernity in Indonesia); Edited by Greg Fealy and Greg Barton; Foreword by Abdurrahman Wahid; Published by LKIS, Yogyakarta, 1997; xx + 250 pp.; Rp 17,500. YOGYAKARTA (JP): Little attention has been paid to traditionalist groups such as the Nahdlatul Ulama (NU).

Protests greet Malaysia's plan to tear down historic stadium

Protests greet Malaysia's plan to tear down historic stadium In its desire to modernize, Malaysia is set to tear down a historic stadium where independence was proclaimed more than 30 years ago, writes Anil Netto of Inter Press Service. KUALA LUMPUR: On the morning of Aug. 31, 1957, exultant cries of 'Merdeka!' (Independence!) rang out at a new stadium here.

Clinton consults with Soeharto about bailout

Clinton consults with Soeharto about bailout WASHINGTON (Reuters): President Bill Clinton spoke with Indonesian President Soeharto for about 30 minutes by telephone on Friday night, a White House official said on Saturday, amid reports a bailout for Indonesia faced potential cutoff because of a disagreement about economic policy.

Police officer dies in traffic accident

Police officer dies in traffic accident JAKARTA (JP): A police sergeant from the elite Mobile Brigade died early yesterday after his motorcycle collided with a cigarette stand when he tried to avoid a speeding public minivan on Jl. Raya Pasar Minggu in South Jakarta. Second Sgt. Asep Saefudin, 22, received medical treatment at UKI Hospital in Cawang, East Jakarta, but later died from severe head injuries. According to his colleagues, who flocked to the hospital, Asep, of Jl.

Indonesian hotel faces tough Hanoi market

Indonesian hotel faces tough Hanoi market HANOI (AFP): Indonesia's Sungeiway group launches its US$17 million Hanoi hotel today at a time when existing hotels are crying out for business. Hotel lobbies have long provided a refuge from Hanoi's chaotic streets, but a recent plunge in business travel and tourism has left these traditional oases eerily empty, executives said. And things can only get worse.

PPP nominates Habibie

PPP nominates Habibie JAKARTA (JP): The United Development Party (PPP) formally endorsed B.J. Habibie yesterday for the vice presidency and dropped its boss, Ismail Hasan Metareum, from the candidates list. The Moslem-oriented party's choice is understood to boost Habibie's chance to clinch the position for the 1998/2003 term.

Where to go in Jakarta:

Where to go in Jakarta: Exhibitions * Photo Exhibition: World Press Photo '97, at Erasmus Huis, Jl. H.R. Rasuna Said, Kav S-3, Kuningan, South Jakarta, until Feb. 22. * Original Silkscreens Exhibition by David and Cherie Miles at Australian Embassy Jl. H.R. Rasuna Said, Kav S-3, Kuningan, South Jakarta, Feb. 16-27. * Painting Exhibition by Abdul Gaffur, Abdul Gaffar, Emily Djohan, Marlan Jass in the Lobby, Sari Pan Pacific Hotel, Jl. M.H. Thamrin, Central Jakarta, 8 a.m. to 9 p.m., until Feb.

Financial woes overshadow APEC meeting in Penang

Financial woes overshadow APEC meeting in Penang PENANG, Malaysia (AFP): Asia-Pacific trade officials begin their first round of talks chaired by Malaysia here today with most of the region preoccupied by a financial crisis which has triggered widespread rioting in neighboring Indonesia, the largest economy in Southeast Asia.

RI needs pro-reform cabinet to improve economy

RI needs pro-reform cabinet to improve economy The rupiah remains weak and prices are skyrocketing, triggering riots in several towns. Economist Emil Salim, who held portfolios in three previous cabinets, discusses the necessity for Indonesia to have a credible pro-reform cabinet to improve the nation's economic and political condition. Question: The government has introduced overall economic reforms but why does the rupiah remain weak and why do prices continue rising?

Indonesia's peg mirage

Indonesia's peg mirage If, in his anxiety to find a solution to Indonesia's financial crisis, President Soeharto presses ahead with plans to peg the rupiah to the U.S. dollar, he is likely to find himself exchanging crisis for disaster. The policy looks bound to fail, particularly if it goes into action before stability is restored to the country's economy. Such a strategy would affect the whole region, and could deal a crippling blow to the fragile recovery now under way.

Govt warns against fuel use

Govt warns against fuel use JAKARTA (JP): The Ministry of Mines and Energy has asked the public not to use a newly introduced unleaded gasoline in motorcycles and equipment using four-stroke engines. Ministry spokesman Bangun Usman Harahap said Friday that the unleaded gasoline, Bensin Biru Dua Langkah (BBK-2L), was produced by the state oil and gas company Pertamina especially for motorbikes, three-wheeled bajaj, boats, and lawn mowers equipped with two-stroke engines.

Govt forecasts power glut as demand drops

Govt forecasts power glut as demand drops JAKARTA (JP): The government's "optimistic" projection is for power oversupply of at least 4,000 megawatts on the Java-Bali network in three years due to the economic crisis. Director General of Electricity and Energy Development, Endro Utomo Notodisuryo said contributing factors to the power glut would be a probable decrease in demand combined with increase in supply as several new power plants begin operation.

Govt to subsidize feed meal

Govt to subsidize feed meal JAKARTA (JP): The government has decided to allocate Rp 1.6 trillion (US$160 million) to help stabilize feed meal prices in the domestic market, an official at the Ministry of Agriculture said last week. The head of the ministry's agribusiness department, Ato Suprapto, said the subsidy was indirectly targeted to help floundering small and medium poultry farmers to survive the monetary crisis.

Malaysia rules out peg

Malaysia rules out peg SINGAPORE (AFP): Malaysia is not looking at a peg for its currency but the idea can be explored by other countries, Prime Minister Mahathir Mohamad said in an interview published here Saturday. He reiterated that Malaysia was not planning to seek International Monetary Fund (IMF) aid as its neighbors Thailand and Indonesia have done.

ASEAN proposes deal for Ranarridh to run in election

ASEAN proposes deal for Ranarridh to run in election MANILA (Agencies): Southeast Asian governments proposed a compromise formula yesterday to enable exiled Prince Norodom Ranarridh to run in Cambodia's elections, under which he could be tried, pardoned and then join the poll race. The Philippines, Indonesia and Thailand tried to break the impasse in the face of Cambodian co-Premier Hun Sen's insistence that he will arrest his rival and put him on trial if he comes home.

Asian markets brace for chaos over rupiah's peg

Asian markets brace for chaos over rupiah's peg SINGAPORE (AFP): Asian foreign exchange and stock markets could face renewed volatility this week amid fears of a standoff between Indonesia and its creditors over Jakarta's plans to peg its currency, economists said. Concerns over racial riots triggered by rising food prices in Indonesia, as President Soeharto awaits confirmation for a seventh five-year term, also undermined since early February a strong recovery in Asian financial markets.

China's exports slow as catastrophe hits Asia

China's exports slow as catastrophe hits Asia SHANGHAI (Reuters): The Asian financial crisis started to take its toll on China's foreign trade as exports slowed in January, economists said yesterday. But they said the latest figures were unlikely to change Beijing's determination to avoid a currency devaluation to make exports more competitive. "There has been a slowing of exports," said Yang Shijun, a researcher in economics at Fudan University.

Taiwan to invest in SE Asia

Taiwan to invest in SE Asia TAIPEI (AFP): Several leading Taiwanese business groups are to form a holding company to invest in Southeast Asian nations devastated by the financial turmoil, a news report said Saturday. Each group is required to put in at least T$500 million (US$15.2 million) as share capital for the new firm, the Commercial Times reported.

Five activists held for child labor march

Five activists held for child labor march JAKARTA (JP): Five labor activists remained in police custody Saturday after their arrest the previous day for involvement in the local staging of the Global March against Child Labor, a city police spokesman said. Lt. Col. E. Aritonang said Saturday the members of the Indonesian Committee for the Global March Against Child Labor were accused of violating a requirement for permits for public demonstrations.

IMF official favors Asia currency basket

IMF official favors Asia currency basket PHILADELPHIA (Reuters): Japan's representative at the International Monetary Fund said Friday that he believed troubled Asian countries could set the stage for economic recovery by pegging their exchange rates to a basket of regional currencies.

Haze from forest fires blankets areas in Riau

Haze from forest fires blankets areas in Riau JAKARTA (JP): Thick haze from forest fires has blanketed some regencies in Riau province over the last few weeks, Antara reported Saturday from Pekanbaru. The U.S. National Oceanic and Atmospheric Administration (NOAA) located 27 hot spots in the province from satellite images on Feb. 10.

Moslem leader decries attacks on Chinese property

Moslem leader decries attacks on Chinese property YOGYAKARTA (JP): Amien Rais, leader of the 28-million-strong Muhammadiyah Moslem organization, denounced yesterday attacks on property owned by the Indonesian Chinese community. Amien told reporters after a grand rally in this historic city that protests should be directed at the government, Reuters reported. "I think my government has an absolute duty to supply enough rice and other basic needs to the people," he said. "The stomach cannot wait..

RI asks Japan for rice aid

RI asks Japan for rice aid TOKYO (AFP): The Indonesian government has unofficially asked Japan to send 500,000 tons of rice because a food shortage is looming due to a poor harvest and economic woes, a leading daily said Saturday. Tokyo will start negotiations on the assistance as early as March after Jakarta makes a formal request, the Nihon Keizai Shimbun said.

Dengue fever kills 66 people

Dengue fever kills 66 people PALEMBANG, South Sumatra: At least 66 people in South Sumatra have died of dengue fever since early January, according to a local health official. The head of the provincial health office, Deddy Ruswendi, was quoted by Antara as saying that 1,381 people have been infected by the disease. Five regencies in the province -- Palembang, Muara Enim, Musi Banyuasin, Musi Rawas and Ogan Komering Ilir -- have been relatively prone to such outbreaks.

Prevention key to public order

Prevention key to public order JAKARTA (JP): It is no exaggeration to suggest that the security issue prior to and during the General Session of the People's Consultative Assembly (MPR) next month demands special attention both from the government and the public.

Haryono presents aid to Yogya

Haryono presents aid to Yogya YOGYAKARTA: State Minister of Population Haryono Suyono presented Saturday a Rp 6.45 billion (US600,000) state-sponsored rolling fund scheme to the special provincial territory of Yogyakarta. Antara reported that the fund would be used to alleviate poverty and to help workers who have lost their jobs due to the economic crisis.

Three-month-old baby has baby

Three-month-old baby has baby JAKARTA (JP): Doctors in the East Java town of Kediri have successfully removed a fetus from a three-month-old female baby, a press report said yesterday. Initially, doctors in the Baptis Hospital had thought that Gita Novia Rahma's stomach had progressively swelled because of a tumor until they performed surgery last week.

Emil intends to go forward with VP nomination

Emil intends to go forward with VP nomination DEPOK, West Java (JP): Senior economist Emil Salim has responded favorably to calls by fellow intellectuals for him to be nominated a candidate for the vice presidential election next month. "I'm pressing forward. I intend to stay (in the race)," Emil said here Saturday after Asman Boedisantoso Ranakusuma was installed as the new rector of the University of Indonesia, replacing M.K. Tadjudin. "Five years ago, nobody nominated me.

Why always Singapore?

Why always Singapore? When Singapore came to support Indonesia in its monetary crisis, someone pointed out that its pledged US$5 billion was conditional. This may mislead others to think that support from Japan and other countries came without strings attached. When someone said the attack on the rupiah came from outsiders, straight away people pointed at Singapore and forgot about other financial centers, such as Hong Kong and Kuala Lumpur.

Fresh riots hit W. Java subdistrict

Fresh riots hit W. Java subdistrict BANDUNG (JP): A riot triggered by price hikes hit the West Java subdistrict of Kadipaten in Majalengka regency, 10 kilometers east of here, as other towns remained tense yesterday. Dozens of people began to take to Jl. Siliwangi and Jl. Baros at midday, attacking shops and setting them ablaze. At least 15 shops were damaged, six of them -- plus several motorcycles -- were set on fire.

Share prices are likely to remain under pressure

Share prices are likely to remain under pressure JAKARTA (JP): Stock prices on the Jakarta Stock Exchange (JSX) are likely to remain under pressure this week over concerns of heated social and political tensions and uncertainties surrounding the planned currency board system, analysts have said.

Japan beats Indonesia in sweeps for Davis Cup placing

Japan beats Indonesia in sweeps for Davis Cup placing SAPPORO, Japan (AP): Japan beat Indonesia in both singles matches yesterday for a 5-0 record in the three-day first round in Group One of the Davis Cup Asia-Oceania Zone. On Saturday, Japan already clinched a place in the second round of the competition by winning a doubles match for a 3-0 lead. In the first match Sunday, Takao Suzuki defeated Andrian Raturandang 6-1, 6-4, 6-4 at Tsukisamu Green Dome in northern Japan.

Malaysia and Singapore urge RI to put out forest fires

Malaysia and Singapore urge RI to put out forest fires KUALA LUMPUR (Agencies): Malaysia and Singapore urged Indonesia yesterday to take immediate steps to douse a new wave of fires raging through East Kalimantan. "We hope that the Indonesia authorities will take immediate legal action regarding the fires caused by the opening up of forests and by the El Nino weather phenomenon," Information Minister Mohamed Rahmat was quoted by Bernama news agency as saying.

ABRI's new leadership

ABRI's new leadership We all know the government is working hard to overcome the current crisis. One consequence that this brings, however, is a heightened degree of vulnerability to security disturbances.

U.S. envoys to gather in S'pore to discuss crisis

U.S. envoys to gather in S'pore to discuss crisis SINGAPORE (AFP): U.S. ambassadors from across Southeast Asia will gather in Singapore this week to discuss the Asian financial crisis and ways to increase U.S. trade with the region, the U.S. embassy said here yesterday. The envoys will meet Feb. 19-20 and hold discussions with United States Commerce Secretary William Daley, who will be on an official visit to Singapore at the time, an embassy statement said.