Indonesian Political, Business & Finance News

Archive: 18 February 1998

58 articles found

Coffee business perks up in Central Aceh

Coffee business perks up in Central Aceh By Saidulkarnain Ishak LHOKSEUMAWE (Antara): While most of the country whimpers and wails about the monetary crisis, Central Aceh's coffee growers have much to smile about. Prices of java reached their highest ever rate in the past two months, and they continue to climb. Granted, this occurred in tandem with an increase in prices of basic commodities in the district, hikes which are steeper than in other parts of the Aceh Special Region.

Germany is a reliable partner for development and reform

Germany is a reliable partner for development and reform By Theo Waigel JAKARTA (JP): My visit to Jakarta takes place at a time of great difficulty for Indonesia and for its people. I have come here with a twofold purpose: to make a personal assessment of the state of the economy, and to assure Indonesia of Germany's friendship and support. Federal Chancellor Kohl has been following developments attentively and has spoken repeatedly to President Soeharto by telephone.

SEA Games puzzle still lingers

SEA Games puzzle still lingers JAKARTA (JP): Minister of Sports and Youth Affairs Hayono Isman has pledged to resolve the controversy over the amount of funds raised through sticker sales for the SEA Games. "I will seek information from the four institutions involved in the sale of stickers for the SEA Games.

Educated people leasts confident about govt: Poll

Educated people leasts confident about govt: Poll JAKARTA (JP): The more educated people are, the less confidence they have in the government and other state institutions, a poll concluded yesterday. The survey, conducted by the Center for the Study of Development and Democracy (CESDA), also revealed people's growing fear for the future given the prolonged economic woes.

Economic crisis hits tourism

Economic crisis hits tourism UJUNGPANDANG, South Sulawesi: The spiraling economic crisis has hit tourism hard in the popular Tana Toraja regency, an official said yesterday. Tana Toraja regent Tarsis Kodrat said that since the economic crisis began last July, revenue from the tourism sector had dropped by 40 percent compared to the previous 12 months.

Asian stock markets recover some losses

Asian stock markets recover some losses SINGAPORE (AFP): Asian stocks closed generally higher yesterday, reversing the previous day's losses and surprising some brokers due to continued uncertainty about Indonesia. Singapore's benchmark stock index ended 1.0 percent firmer but off its highs on bargain hunting and stable regional currencies.

S'pore parliament focuses on RI

S'pore parliament focuses on RI SINGAPORE (Reuters): Singapore's parliament will focus on Indonesia's economic crisis when it holds a new session this week, the government said in a statement yesterday. Deputy Prime Minister Lee Hsien Loong is expected to be asked details of Singapore's proposal for guarantees for Indonesian imports and whether the government is providing guarantees for commercial liabilities during tomorrow's session.

Govt to provide incentives to boost textile exports

Govt to provide incentives to boost textile exports JAKARTA (JP): The government plans to provide financial incentives to textile companies to boost their exports. Minister of Industry and Trade Tunky Ariwibowo said yesterday the government would provide credit and other financing facilities to financially troubled textile producers. He said the government would also ease textile export quota procedures to facilitate export activities.

Low prices squeeze dairy farmers

Low prices squeeze dairy farmers By M.M.I Ahyani BANDUNG (JP): A five-year-old local boy, when told his parents could no longer afford to buy milk powder for him because its price had soared in the last few weeks, suggested that the family raise a milch cow so he could drink straight from its udder. Many parents have chosen to stop buying processed milk for their children -- given that a two-kilogram tin of milk powder is now sold for Rp 85,000 (US$8.50), compared to Rp 30,000 seven months ago.

Indonesia Incorporated: Dream or reality?

Indonesia Incorporated: Dream or reality? By C.J. de Koning This is the first of two articles on the capricious value of the Indonesia's currency. JAKARTA (JP): In the discussions about a desirable rupiah-U.S. dollar exchange rate, nearly all focus is on the price element of the exchange rate. The price of the rupiah stands for its value within Indonesia. In business such prices play a highly important role. For instance the price of sugar was Rp 1,400 per kilogram in June last year.

Stock prices up 3.1% on foreign buying

Stock prices up 3.1% on foreign buying JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX) climbed 3.1 percent yesterday on the back of strong foreign buying for certain selected stocks, analysts said. Bahana Securities' Director of Equities, Bruce Rolph, said short-term foreign institutional investors made large investments in bell-weather stocks through joint venture brokerage firms. "This is just another day of arbitrage trading by offshore investors," Rolph said.

Cavallo says rupiah debate is damaging

Cavallo says rupiah debate is damaging BUENOS AIRES (Reuters): The public disagreement over Indonesia's plans to set up a currency board is doing little to stabilize the rupiah currency, the architect of Argentina's currency peg, Domingo Cavallo, said Monday.

IMF 'not against' govt's CBS plan

IMF 'not against' govt's CBS plan JAKARTA (JP): The International Monetary Fund (IMF) is not entirely against the government's plan to adopt a currency board system (CBS), the fund's liaison official for Indonesia said yesterday. Prabhakar Narvekar, however, cautioned that Indonesia should take into account all necessary factors before taking any decision on pegging the rupiah to a fixed exchange rate.

CBS: A cure-all or experiment?

CBS: A cure-all or experiment? By Joe L. Spartz JAKARTA (JP): Whether the proposed currency board system ultimately turns out to be a Damocles sword or a panacea for the ailing rupiah depends on a number of factors and conditions. They are sufficient foreign currency funding, pegging rates, public trust and credibility, ability of the banking sector to cope with its implementation and, last but not least, strict safeguards in order to minimize inevitable abuse of the system.

PLN pays for power at below agreed rates

PLN pays for power at below agreed rates JAKARTA (JP): The state electricity company PLN has continued to buy power from private companies at a rate of Rp 2,450 per dollar despite agreements to pay according to current exchange rates. Company president Djiteng Marsudi said Monday that PLN's unilateral move to pay for privately generated power at the pre- crisis exchange rate has infuriated independent power producers (IPPs) who accuse PLN of breaking their power purchase agreements (PPAs).

Currencies unmoved by BI governor's exit

Currencies unmoved by BI governor's exit SINGAPORE (Reuters): Asian currencies were subdued yesterday as traders mulled the likelihood of Indonesia ploughing ahead with a currency board system despite daily criticism of the proposal. The rupiah remained above the 10,000 per dollar level for most of the day, slipping through briefly on early speculation that Bank Indonesia governor J. Soedradjad Djiwandono, who is understood to oppose the currency board, was about to resign.

Candidates for No. 2 man

Candidates for No. 2 man After months spent guessing, the nation can now rest assured that Minister of Research and Technology B. J. Habibie will be elected vice president for the next five-year term. His backing by Golkar, a powerful faction in the People's Consultative Assembly (MPR), became ironclad after rival nominee Harmoko, the Assembly speaker, withdrew from the contest.

Telkom prepares facilities for MPR General Session

Telkom prepares facilities for MPR General Session JAKARTA (JP): State-owned PT Telkom has prepared the connections for two temporary telecommunication centers to support next month's General Session of the People's Consultative Assembly (MPR), an executive said yesterday. Telkom president A.A. Nasution said the centers, to be set up in the Assembly building, would have 12 telephone lines, several modems, facsimiles and telex machines for MPR members and the media.

Stock Exchange

Stock Exchange Stock prices on the Jakarta Stock Exchange (in rupiah) on Feb. 17, 1998: Shares Close Change Trading Volume ------------------------------------------------------------ Ades Alfindo 575 0 0 AHAP Insurance 350 0 0 Alter Abadi 575 0 0 Alumindo Light Metal 300 -25 250,000 Alumindo Perkasa 275 0 0 Aneka Kimia Raya 550 0 1,025,000 Aneka Tambang 1,575 -50 1,957,500 Anwar Sierad 200 0 94,000 Apac Centertex Corp.

City Council okays draft changes to vehicles bylaws

City Council okays draft changes to vehicles bylaws JAKARTA (JP): The City Council approved yesterday the drafts of two city bylaws which will revoke the progressive vehicle taxation system and significantly reduce tax for cars and vehicle ownership transfer. After several revisions were made to the Vehicle Taxation (PKB) and Tax on Vehicle Ownership Transfer (BBN-KB) drafts, the bylaws were read out by Speaker Edy Waluyo during a plenary session.

Rabindranath Tagore

Rabindranath Tagore Rabindranath Tagore, as a world poet, was honored with the Nobel Prize for Literature in 1913, and had great influence in Indonesia, particularly prior to World War II. However, some of his works were published after Indonesia's independence was declared. Therefore, it is necessary to trace the relationship between Rabindranath Tagore and Indonesian artists and thinkers of that time as well as today. Tagore visited Indonesia from Aug. 22, to Sept. 27, 1927.

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 Jazz Music 8:30 TV Drama: RT 09 9:00 World News 9:30 Music: Kamera Ria 10:30 Late News 10:40 TV Drama: Bintang...

Colonel OK'd for vice governorship

Colonel OK'd for vice governorship DILI: Minister of Home Affairs Moch. Yogie S.M. has approved Col. Johanes Suryo Prabowo to become the next deputy governor of East Timor, an official said yesterday. Prabowo is set to replace incumbent deputy governor Brig. Gen. Johanes Haribowo, whose term of office ends in March. "The minister has asked governor Abilio Soares to seek the provincial legislative council's endorsement," provincial government secretary Radjakrina Brahmana said yesterday.

'Imported food hits local products'

'Imported food hits local products' JAKARTA (JP): President Soeharto expressed concern yesterday that the influx of foreign foods was threatening the survival of traditional products which had the potential to penetrate the global market.

Forest fires

Forest fires I would like to refer to 'Haze from forest fires blankets areas in Riau', page 2, Feb. 16, 1998. I read The Jakarta Post every day because it is one of the most interesting and most straightforward newspapers of Indonesia.

Indonesia orders hundreds of diplomats home

Indonesia orders hundreds of diplomats home JAKARTA (JP): The monetary crisis has forced Indonesia to begin calling home at least 200 of its diplomats stationed abroad. Minister of Foreign Affairs Ali Alatas confirmed the plan after attending the Third Meeting of the Joint Commission on Economic and Technical Cooperation between Thailand and Indonesia yesterday. He said the diplomats would not be replaced.

A forgotten disaster

A forgotten disaster Though publicity has been scant, another disaster, not monetary, has struck. This one has nothing to do with the rupiah exchange rate or a crises of confidence. El Nino is the scapegoat for indifference among authorities, an indifference all too common in the forestry business in this country. Forest fires are once again raging in East Kalimantan. The area damaged is, as yet, unknown. However, the 200 hot spots initially detected have now multiplied to about 800.

Sempati stops flights

Sempati stops flights JAKARTA (JP): Private airline Sempati Air will suspend flights to seven domestic and international destinations starting next month due to the economic crisis. Service will be discontinued temporarily on domestic routes to Ambon, Denpasar, Jayapura, Manado, Surakarta and Timika, the airline said in a statement received by The Jakarta Post yesterday. It will also suspend Singapore on its international flight roster.

Paid-up capital of banks

Paid-up capital of banks From Bisnis Indonesia The Bank Indonesia governor stated on Feb. 10 that the paid-up capital of banks would be Rp 1 trillion at the end of 1998, Rp 2 trillion at the end of 1999, and Rp 3 trillion at the end of 2003. The regulation for foreign exchange banks is Rp 100 billion in 1999, with a 10 percent capital adequacy ratio (CAR), and Rp 150 billion in 2001, with a 12 percent CAR.

Three national shuttlers quit

Three national shuttlers quit JAKARTA (JP): Three national players Ardy B Wiranata, Alan Budikusuma and Hermawan Susanto have announced they will quit badminton. Ardy will train a United States national team while continuing his studies there. Alan wants to do business, and Hermawan does not intend to continue his career as a coach. Hermawan's wife, Sarwendah Kusumawardhani, had no qualms about his decision to quit badminton.

BHP to sign RI contract

BHP to sign RI contract MELBOURNE (Reuters): The Broken Hill Pty Co Ltd (BHP) on Tuesday indicated it was close to signing a deal with the Indonesian government to step up feasibility work for the Gag Island nickel deposit. A report in The Australian newspaper said a contract of work for the nickel deposit, 150 km west of Irian Jaya, would be signed between the company and the Indonesian government on Thursday.

RI may face dumping charge

RI may face dumping charge WASHINGTON (AFP): A U.S. trade body is to issue a preliminary ruling Thursday in a dispute over prices of imported canned mushrooms that could lead to substantial penalties on Chinese, Indonesian, Indian and Chilean exporters. The International Trade Commission is scheduled to determine if there is a "reasonable indication" that imports from the four countries are causing harm to the U.S. canned mushroom industry.

Kadin delegation leaves for Japan

Kadin delegation leaves for Japan JAKARTA (JP): An Indonesian Chamber of Commerce and Industry (Kadin) delegation, led by its chairman Aburizal Bakrie, is leaving for Tokyo today to discuss the country's corporate foreign debt problem. After a meeting with Japan's ambassador to Indonesia yesterday, Aburizal said the delegation would meet key officials of the Keidanren, Kadin's Japanese counterpart, to explain Indonesia's current condition and its future prospects.

Rising drug prices blamed for drop in outpatients

Rising drug prices blamed for drop in outpatients JAKARTA (JP): The number of outpatients using state-run Cipto Mangunkusumo General Hospital, which is popular among low-income Jakartans, has dropped drastically. Only half of last year's monthly average of 25,000 patients now use the hospital's facilities, an executive said yesterday.

Uzbekistan works with Ukraine

Uzbekistan works with Ukraine KIEV (DPA): Two former Soviet republics, Ukraine and Uzbekistan, are to sign a basic treaty on friendship and cooperation during the visit of Uzbekistan President Islam Karimov to Kiev starting today. During the visit, which will end tomorrow, Karimov is to hold talks with his Ukrainian counterpart Leonid Kuchma and Ukraine's prime minister and speaker of the parliament. The talks are expected to concentrate on economic cooperation.

Monetary reform could pay divident

Monetary reform could pay divident By Peter Duncan JAKARTA (JP): Indonesia is about to embark on the most far- reaching monetary reform of its half century of existence as an independent nation. It is being discouraged from taking this step by an impressive array of conventional banking and business authority and wisdom from the IMF, the World Bank and national leaders down through economists and analysts to the ever- articulate brokers and fund managers.

Pakistani jailed in heroin case

Pakistani jailed in heroin case JAKARTA (JP): A Pakistani man was sentenced yesterday to eight and a half months in jail and fined Rp 500,000 for being an accessory to an illegal drug transaction. Central Jakarta District Court presiding judge Suyatno said Ali Liquat, 35, knew of the transaction of 450 grams of heroin at Wisma Bintang hotel in Tanah Tinggi, Central Jakarta, on June 17 last year but failed to report it to the police.

BI governor Soedradjad replaced

BI governor Soedradjad replaced JAKARTA (JP): President Soeharto has removed Soedradjad Djiwandono from his post as central bank governor and appointed Sjahril Sabirin, a long time Bank Indonesia career officer, in his place, Minister/State Secretary Moerdiono said yesterday. Sjahril, 54, had served as a director of the bank since December after returning from a three-year stint as a World Bank senior economist in Washington. Like Soedradjad, he will carry a ministerial rank.

Driver strike hits Pandeglang

Driver strike hits Pandeglang PANDEGLANG, West Java: Dozens of buses were mobilized from government offices yesterday to ferry passengers left stranded by a massive strike by city bus drivers. Students and workers were those most affected by the strike organized to protest the dramatic rise in prices of auto parts and to press demands for fare hikes. Antara reported that major government offices looked like bus terminals as scores of people waited for buses to take them to work, school or home.

Crime and corruption as forms of business

Crime and corruption as forms of business By Mochtar Buchori JAKARTA (JP): It has been said that among gangsters, killing is just "business". It is something that has to be done for survival. As such, it should be done efficiently. A true gangster never kills in anger. In most cases the gangster approaches the victim in a friendly manner, chats with the victim, he may even invite the victim for a drink, and then he strikes without warning. The job is done, and the gangster goes away quietly.

Timber companies to be reduced to 50 by 2003

Timber companies to be reduced to 50 by 2003 JAKARTA (JP): The government plans to consolidate the timber industry by reducing the number of forest concession holders from 437 to 50 within the next five years to boost efficiency, a minister said yesterday. Minister of Forestry Djamaludin Suryohadikusumo said the consolidation measures were necessary for both state and private companies to strengthen their businesses.

Dairy buys stake in Hero

Dairy buys stake in Hero LONDON (Reuters): Trade and retail group Dairy Farm International Holdings Ltd said yesterday it was paying $36.4 million for a stake in Indonesia's PT Hero super market chain. Dairy Farm, partially owned by Hong Kong's Jardine Matheson Holdings, said it had bought a bond from PT Hero Pusakasejati which would be exchangeable into 24.55 percent of shares in Hero after five years.

Crisis could 'lead to widespread strikes'

Crisis could 'lead to widespread strikes' JAKARTA (JP): Unless properly addressed, the current economic crisis could spark widespread strikes that would threaten sociopolitical stability, labor activists warned yesterday.

Pawnshops doing big business as public seeks quick cash

Pawnshops doing big business as public seeks quick cash JAKARTA (JP): With no money to buy basic commodities and pay day still a week away, Tuti was at her wit's end. How could she get her hands on some cash? Go to the bank? Swallow her pride and borrow from a friend or relative? Instead, she chose to hock some of her belongings at the pawnshop. After all, procedures at the shops, called pegadaian in Indonesian, were relatively simple.

Man gets 6 months for pot possession

Man gets 6 months for pot possession BOGOR (JP): The Bogor District Court sentenced Endah, alias Sapri, to six months in jail yesterday for possession of three marijuana cigarettes. Prosecutor Lukman said the 24-year-old defendant was guilty of violating Article 85 of Law No. 22/1997 on illegal use of narcotics. "The defendant is deserving of this punishment," Lukman said. Judge Nafisah met Lukman's sentencing demand, stating that the term was light for the defendant.

Kidney patients worried

Kidney patients worried UJUNGPANDANG, South Sulawesi (JP): Hundreds of local patients with kidney failure are in great danger because of the soaring cost of medical treatment, relatives said. They said that the price for dialysis had skyrocketed to between Rp 600,000 and Rp 1 million (US$67 to $111) from Rp 300,000 before the economic crisis began last July.

Hun Sen accepts Japan's plan on ousted Ranariddh

Hun Sen accepts Japan's plan on ousted Ranariddh PHREK DACH, Cambodia (Reuters): Cambodian leader Hun Sen said yesterday he accepted a Japanese plan for resolving Cambodia's political deadlock, paving the way for the return of the co- premier he ousted last year, Prince Norodom Ranariddh.

Five drug dealers arrested for kidnapping

Five drug dealers arrested for kidnapping JAKARTA (JP): Police arrested five alleged drug dealers during a raid on a Central Jakarta house yesterday and rescued a woman who the group are believed to have kidnapped. City police spokesman Lt. Col. E. Aritonang said the five had kidnapped the woman to blackmail her brother, who allegedly failed to supply them with drugs.

More newsprint importers sought

More newsprint importers sought YOGYAKARTA (JP): The Association of Indonesian Newspaper Publishers (SPS) urged the government yesterday to facilitate the importation of newsprint because the current near-monopoly had taken an increasing toll on the press industry. Association secretary-general Leo S. Batubara said newsprint producer PT Aspex Paper, which is largely controlled by timber baron Mohamad "Bob" Hasan, practically monopolized the procurement of newsprint for the country's print media.

Soedradjad market-friendly and consistent

Soedradjad market-friendly and consistent JAKARTA (JP): Bank Indonesia Governor J. Soedradjad Djiwandono suddenly leaves his office as the country's economy is sinking due to the rupiah meltdown. Financial market players have reacted with surprise by President Soeharto's decision to sack Soedradjad when the governor's official tenure would actually conclude by the end of this month. The move follows similar dismissals of four Bank Indonesia directors in late Dec. 1997.

Conversion Rates

Conversion Rates JAKARTA (JP): Bank Ekspor Impor Indonesia's (Bank Exim) indicative conversion rates on Feb. 17, 1998: Buying Selling Rp Rp U.S.

English course for Navy officers

English course for Navy officers JAKARTA (JP): Rear Admiral Abu Hanifah Hasanuddin, a personnel affairs assistant to the Navy commander, opened a nine-day English course for 11 of the Navy's high-ranking officers yesterday. Abu Hanifah said in his speech that the course, the third conducted by the Navy, was intended mainly to enable the participants to hold meetings, discussions and negotiations as well as to make written reports and presentations in English.

Monsoon forecast to end next month

Monsoon forecast to end next month JAKARTA (JP): The National Meteorology and Geophysics Agency has predicted that the rainy season will end next month. The head of the agency, Sri Diharto, told The Jakarta Post on Tuesday that the rainy season would peak this month in Jakarta and most parts of Indonesia. "Due to the continuation of the effects from the El Nino phenomenon, which is expected to end in June, rain will likely continue to fall sporadically.

Spotlight

Spotlight Photo A: Megawati JP/leo MEET THE AMBASSADOR: U.S. Ambassador to Indonesia Stapleton Roy greets Megawati Soekarnoputri, the ousted leader of the Indonesian Democratic Party. She held a post Idul Fitri gathering at her residence on Monday last week.

Tunky urges PT Timor to review its business

Tunky urges PT Timor to review its business JAKARTA (JP): Minister of Industry and Trade Tunky Ariwibowo has urged PT Timor Putra Nasional to assess whether its business is still commercially feasible. Tunky said yesterday he has called on the car import company, which until last month had received tax and duty exemptions from the government, to consolidate its project due to the sluggish economy.

KL and S'pore start anew

KL and S'pore start anew KUALA LUMPUR (Reuters): Malaysia and Singapore sought yesterday to bury old rivalries, agreeing to cooperate in the rescue of the region's reeling economies. Speaking at the end of a visit by Singaporean Premier Goh Chok Tong, Prime Minister Mahathir Mohamad also said that Malaysia would not cut off the island-republic's water supply. "The two prime ministers ...

Team given go ahead to probe sticker system

Team given go ahead to probe sticker system JAKARTA (JP): The city municipality has established a special team to conduct an in-depth study of the proposed sticker system, which is to replace the current three-in-one traffic regulation. Gubernatorial Decree No. 115/1998 dated Feb. 9 -- but made available to the media Monday -- sets out the team's objectives.

Habibie only needs Armed Forces' nod

Habibie only needs Armed Forces' nod JAKARTA (JP): B.J. Habibie only needs the Armed Forces' nod to make his vice presidential nomination a forgone conclusion after the country's 27 governors lined up behind him yesterday. The regional leaders' endorsement means that Habibie, the state minister of research and technology, has secured the backing of four of the five factions in the People's Consultative Assembly (MPR).