Indonesian Political, Business & Finance News

Archive: 21 February 1998

55 articles found

Mugging in taxi

Mugging in taxi At about 7 p.m. on Monday, Feb. 16, my wife flagged down an SS taxi (an old vehicle) in front of the Land Communications office on Jl. Sudirman, South Jakarta. Upon entering the automobile, she saw a jacket draped over the back of the front passenger seat with nobody in sight except the driver. One hundred meters down the road a man suddenly emerged from the darkness of the front seat area holding a knife and warned my wife not to scream.

Students rally over price hikes

Students rally over price hikes YOGYAKARTA (JP): Hundreds of students from 10 universities here held three different demonstrations yesterday, demanding the government guarantees adequate supplies of basic commodities at affordable prices. The rally was part of a two-day demonstration by students calling themselves the Association of Yogyakarta Youth Struggle. They included students from the state-run Gadjah Mada University, the Institute of Indonesian Art and the Institute of Islamic Studies.

On expatriates

On expatriates I would like to reply to a letter published on Feb. 17 concerning expatriates. The person who wrote the letter thinks that the expatriate community in Indonesia is to be blamed for the present bad economic situation.

Stock Exchange

Stock Exchange Stock prices on the Jakarta Stock Exchange (in rupiah) on Feb. 20, 1998: Shares Close Change Trading Volume -------------------------------------------------------- Ades Alfindo 650 25 48,000 AHAP Insurance 350 0 0 Alter Abadi 500 0 55,000 Alumindo Light Metal 300 0 40,500 Alumindo Perkasa 275 0 0 Aneka Kimia Raya 575 0 220,000 Aneka Tambang 1,625 0 4,626,000 Anwar Sierad 225 0 160,000 Apac Centertex Corp.

March uncertainties force GM to delay launching of Blazer

March uncertainties force GM to delay launching of Blazer By John Aglionby ANTICIPATED political and economic uncertainties in the next month have prompted General Motors Buana Indonesia (GMBI), the local arm of American auto giant General Motors, to delay the launch of the 1998 Blazer.

364,000 cubic meters of illegal wood seized

364,000 cubic meters of illegal wood seized JAKARTA (JP): The government confiscated 364,000 cubic meters of illegally felled wood during the past three years, a senior Ministry of Forestry official has reported. Director General of Forest Protection and Nature Preservation Soemarsono said yesterday the ministry has auctioned 237,000 cubic meters of the confiscated wood, bringing in Rp 13 billion (US$1.44 million) in state revenues.

U.S. watches RI closely

U.S. watches RI closely WASHINGTON (Reuters): The United States is closely monitoring economic and political developments in troubled Indonesia, a senior U.S. Treasury official said on Thursday. The official added that the Group of Seven (G-7) industrialized nations agree that implementing a currency board, as has been proposed by Indonesia, would not provide a quick fix to the nations economic woes.

RI 'not strong enough' to resist pressures

RI 'not strong enough' to resist pressures JAKARTA (JP): President Soeharto told visiting Yemeni President Ali Abdullah Saleh that Indonesia's economic resilience was not strong enough to resist external pressures. Soeharto said in their one-hour meeting that he hoped developing countries would learn from Indonesia's experience so they would not make the same mistakes.

Firm to manage city's housing complex

Firm to manage city's housing complex JAKARTA (JP): The municipality is in the process of handing over management of its housing complex for high-ranking officials in Pejaten Mas, South Jakarta, to other parties due to a lack of maintenance funds, an official said yesterday. Deputy Governor of Economic and Financial Affairs Harun Al Rasyid said that besides the fund shortage, only two of the 14 houses were occupied. "The maintenance for these houses costs up to Rp 30 million per month.

Slingshots await rioters in Tegal

Slingshots await rioters in Tegal JAKARTA (JP): A Central Java regent has ordered 1,000 slingshots and 40,000 cement marbles to be used to ward off rioters in his area, a media report said yesterday. Tegal regent HM Zakir, who is an Army colonel, said Thursday the slingshots would be provided to security personnel consisting of civil servants trained in handling unrest.

Free food handed out to stave off rioting

Free food handed out to stave off rioting JAKARTA (JP): Governor Sutiyoso's plan to provide free staple food for needy residents is aimed at deterring people from staging street demonstrations, a city official said yesterday. Head of the city's Regional Economic Bureau (Binekda) Hari Sandjojo said it would comfort many people to know the municipality was ready to help them if there was an "emergency" situation.

British Embassy offers scholarships

British Embassy offers scholarships JAKARTA: The British Embassy has offered 60 scholarships under the British Chevening Award Scheme 1998-1999 to Indonesians to study for one year at postgraduate level in the United Kingdom.

Changi expands cargo unit

Changi expands cargo unit SINGAPORE (AFP): A new airfreight terminal is to be built at Singapore's Changi international airport, boosting its position as Southeast Asia's leading air cargo hub, Singapore Airlines Ltd. (SIA) said yesterday. Singapore Airport Terminals Services (SATS), a wholly owned Singapore subsidiary, is developing the terminal, due for completion by late 2000 at a cost of S$300 million (US$183 million), a statement said.

Little movement as Asian stock markets stay firm

Little movement as Asian stock markets stay firm HONG KONG (AFP): Asian-Pacific markets posted little movement yesterday keeping an anxious eye on events in Indonesia and the Gulf as well as the region's economic crisis. There was mixed trading, with Thailand posting the biggest gains where the market ended 2.2 percent up, but analysts said sentiment was cautious due to regional and domestic concerns.

Elite schools must balance idealism and commercialism

Elite schools must balance idealism and commercialism By Mochtar Buchori JAKARTA (JP): This is a story about parents who felt betrayed by a school they once trusted, and about the difficulties they had in restoring that trust. The moral of the story is that trust cannot be restored by parents and teachers alone. The school yaysan, or foundation, which provides the capital and early running costs of private schools, must also be involved in this effort.

Aspelindo welcomes requirement for lubricant quality control

Aspelindo welcomes requirement for lubricant quality control JAKARTA (JP): The Association of Indonesian Lubricant Producers (Aspelindo) hailed yesterday a Jan. 12 government regulation requiring lubricant producers and importers to register their products with the Ministry of Mines and Energy. Association chairman AP Batubara said the regulation would force producers to control the quality of their products.

Conversion Rates

Conversion Rates Jakarta (JP): Bank Ekspor Impor Indonesia's (Bank Exim) indicative conversion rates on Feb. 20, 1998: Buying Selling Rp Rp U.S dollar 1 8,000.00 10,500.00 Austrian shilling 1 560.80 850.60 Australian dollar 1 4,999.00 7,095.60 Belgian franc 1 198.00 279.60 Canadian dollar 1 5,224.40 7,364.30 Swiss franc 1 5,064.60 7,152.60 Deutschemark 1 4,071.00 5,789.50 Danish krone 1 1,071.80 1,514.30 French franc 1 1,218.10 1,722.70 Poundsterling 1 12,180.80 17,158.90 Hong Kong dollar 1 949.

Citibank suspends Thai move

Citibank suspends Thai move BANGKOK (AFP): U.S. banking giant Citibank NA has suspended groundbreaking moves to take over a crippled Thai institution after the central bank ordered a major shake-up at the local bank, it was announced yesterday. Citibank NA, which in November announced it would take a majority stake in First Bangkok City Bank plc (FBCB), has formally advised FBCB that it had suspended a due diligence probe into the bank, FBCB said.

Japan announces plan for $2.36b in new loans for Asia

Japan announces plan for $2.36b in new loans for Asia TOKYO (Reuters): Eager to ward off criticism that it is not doing enough to help Asia, Japan announced yesterday 300 billion yen (US$2.36 billion) in new loans destined mostly for Indonesia, as well as other steps for the troubled country. Trade Minister Mitsuo Horiuchi also said further Japanese measures for Asia were possible. "Further steps for Asia are always possible. This is not the end of it," he told a news conference.

Departure tax

Departure tax From Kompas Kompas reported on Feb. 3 and Feb. 4 to the people in this country (not through the House of Representatives) that the departure tax has been raised to Rp 1 million. This is a disturbing report to the country's educational program in this era of globalization.

Asian corporate chiefs meet in Bali on crisis

Asian corporate chiefs meet in Bali on crisis JAKARTA (JP): Corporate chiefs from around Asia started three days of discussions yesterday in Nusa Dua, Bali on the economic crisis besetting the region. The gathering of 150 executives, called The President Forum, is to discuss ways Asian businesses can weather the current economic storm and emerge stronger and more competitive.

Jakarta car renters drive a hard bargain

Jakarta car renters drive a hard bargain By John Aglionby CAR hire firms usually thrive in times of economic slowdown. People cannot afford to buy but they can stretch to renting a vehicle as and when they need it. Indonesia's economy has not slowed down, however, it has ground to a complete standstill --if the economic growth predictions are to be believed.

Bank executive tried for scam

Bank executive tried for scam JAKARTA (JP): An executive of PT Bank Dwipa Semesta, one of the 16 banks closed by the government last November, was indicted at the Central Jakarta District Court yesterday for forging promissory notes and deposit certificates worth Rp 22 billion.

Calculating the risks

Calculating the risks It is still difficult at this point to say whether the government will go ahead with the implementation of the currency board system. So far, the government has allowed the public debate on the system's merits to develop. This is positive since an open debate can occur between supporters and opponents of the system. At the same time, Steve Hanke, the system's architect, continues to elucidate the concept's merits to various parties.

Two killed in plane crash

Two killed in plane crash YOGYAKARTA: A Charlie C-213 training aircraft crashed near Adisutjipto Airport here yesterday, killing the trainee pilot on board, eyewitnesses said. They said the plane dropped from an altitude of about 1,000 feet, adding the pilot probably lost control during "a vertical down" maneuver. The identity of the trainee was not immediately made available, the report said.

RI commitment to IMF reform: Mar'ie

RI commitment to IMF reform: Mar'ie JAKARTA (JP): Minister of Finance Mar'ie Muhammad has reassured the finance ministers of the Group of Seven (G-7) developed nations that Indonesia remains firmly committed to the International Monetary Fund (IMF)-sponsored reform package. Mar'ie told the House of Representatives yesterday he gave the reassurance in a letter to G-7 finance ministers who are meeting in London this weekend.

Prabowo demonstrates rapport with Amien

Prabowo demonstrates rapport with Amien JAKARTA (JP): Lt. Gen. Prabowo Subianto, the newly appointed chief of the Army's Strategic Reserve Command (Kostrad), demonstrated yesterday his growing rapport with outspoken Moslem leader Amien Rais by stating he did not have any problem with the latter's often scathing attacks on the government. Prabowo said he had met with Amien several times in the past, but that neither spoke about strategic issues.

MPR factions welcome Emil's vice presidency bid

MPR factions welcome Emil's vice presidency bid JAKARTA (JP): Factions in the People's Consultative Assembly (MPR) welcomed yesterday some people's bid to have senior economist Emil Salim included in the vice presidential election next month, but considered the campaign a lesson in politics rather than a real challenge to their choice B.J. Habibie.

House urges govt to help reduce newsprint price

House urges govt to help reduce newsprint price JAKARTA (JP): The House of Representatives has urged the government to rescue print media from bankruptcy by helping bring down the price of newsprint. Aisyah Amini, who chairs House Commission I for politics, security, defense and law, told a group of journalists and press workers yesterday that the urgent measures required included basing newsprint prices in rupiah and the scrapping of taxes imposed on newsprint.

Air pressure, not temperature

Air pressure, not temperature A The Jakarta Post' article on Feb. 18, page 3, "Monsoon forecast to end next month," refers to an interview with Sri Diharto (director general of the Meteorology and Geophysics Agency, MGA). In column 5, line 14, it states: "When a La Nina occurs, the temperature in Darwin can be lower than the temperature in Tahiti." This was not discussed and is not correct.

Japan's business leaders cool on Jakarta's CBS plan

Japan's business leaders cool on Jakarta's CBS plan TOKYO (AFP): The president of the Indonesian Chamber of Commerce and Industry (Kadin), Aburizal Bakrie, asked his Japanese counterpart yesterday whether Tokyo could help out if Jakarta runs out of hard currency to support a currency peg, an official said. He received a cool response.

RI can maintain ethnic unity: China

RI can maintain ethnic unity: China BEIJING (Reuters): China said on Thursday it believed Indonesia could keep ethnic unity and deal with its economic crisis which has led to anti-Chinese riots. "The Indonesian government is working hard to rebuild its economy, and we believe the Indonesian government can control the situation, keep social stability and ethnic unity," foreign ministry spokesman Zhu Bangzao told a regular news briefing.

Alleged robber dies after drinking insecticide

Alleged robber dies after drinking insecticide JAKARTA (JP): An alleged robber, who tried to commit suicide Thursday after a man died during a bungled robbery at Naga super store in Pondok Gede Plaza, Bekasi, died early yesterday. The body of 20-year-old Rohimin has been sent to Cipto Mangunkusumo General Hospital in Central Jakarta for a postmortem examination.

Strong quake rocks Ambon

Strong quake rocks Ambon AMBON, Maluku: An earthquake measuring 6.0 on the Richter scale was felt here and on surroundings islands yesterday, but there were no immediate reports of casualties, Antara said. A spokesman for the meteorology and geophysics agency here, Ruddy Wattimena, said the quake's epicenter was located at 4.45 degrees south and 129.25 degrees east, 33 kilometers below the sea. He warned local fishermen about possible aftershocks although no tsunami was reported.

Plans to disrupt MPR session uncovered

Plans to disrupt MPR session uncovered JAKARTA (JP): City police chief Maj. Gen. Hamami Nata announced yesterday that documentary evidence had been found of plans to disrupt next month's General Session of the People's Consultative Assembly. He said the documents indicated a particular group planned to wreak havoc on the General Session. "The group apparently does not only plan to cause trouble before the session starts, but also during the session and after the session ends.

Jambi to deport two foreigners

Jambi to deport two foreigners JAMBI, Jambi: The immigration office here is to deport today a Malaysian and a Singaporean who misused their tourist visas to proselytize Taoism in the province. Antara reported yesterday that the two foreigners were identified as Yap Eng Jo, 33, a Malaysian, and Toh Ben Bon, 28, a Singaporean. "They were spreading an illegal religion unregistered in Indonesia," a local immigration official, Zailani, was quoted as saying.

Rain or shine, business as usual at Bandung bars

Rain or shine, business as usual at Bandung bars By Kafil Yamin BANDUNG (JP): Night shadows fell and the heavy rain had just petered out. Barely 20 minutes later, all the executive rooms of the BIO Karaoke & Bar on Jl. Soekarno-Hatta were occupied. It was a full house. "You want to book? Sorry, you will have to wait until one of them leaves," a waitress told a visitor.

Rumors of a riot put Tangerang on edge

Rumors of a riot put Tangerang on edge TANGERANG (JP): Hundreds of stores and supermarkets in this town on the capital's outskirts closed in the early morning yesterday after the area was rocked by rumors of a massive riot. The gossip also prompted residents to abruptly leave the streets and stay at home or in their offices. The authorities' announcement that the rumors were totally baseless apparently failed to persuade the store owners, most of whom are ethnic Chinese, to reopen.

Aneka Tambang brings in 15 new mining COWs

Aneka Tambang brings in 15 new mining COWs JAKARTA (JP): Publicly listed mining company PT Aneka Tambang has received 15 new mining contracts of work (COWs) covering 2.4 million hectares in joint ventures with foreign investors. The 15 COWs are part of 50 COWs awarded by Minister of Mines and Energy I.B. Sudjana to local and foreign investors Thursday.

Stock prices end lower on profit taking

Stock prices end lower on profit taking JAKARTA (JP): After four days of consecutive gains, stock prices on the Jakarta Stock Exchange (JSX) ended 0.2 percent lower yesterday on profit taking by local investors, brokers said. They said trading activities were light for the day as people were still concerned over the government's currency board plans and renewed social unrest.

Food shortages loom in 3 areas

Food shortages loom in 3 areas JAKARTA (JP): Food shortages are threatening thousands of people in several subdistricts in Central Sulawesi, North Maluku and East Kalimantan as the economic crisis continues to deteriorate, media reports said yesterday. In Banggai regency, Central Sulawesi, 526 families, or 2,735 people, are suffering shortages due to a lack of rain.

Asia currencies ease as intervention hopes fade

Asia currencies ease as intervention hopes fade SINGAPORE (Reuters): Asian currencies were weak but off their lows yesterday as hopes of intervention by the Group of Seven (G-7) to shore up Asia's ailing currencies diminished. U.S. Treasury Secretary Robert Rubin said ahead of a G-7 meeting of finance ministers and central bankers in London this weekend the group would press Japan to play a bigger role in helping Asia recover.

Union calls for urgent reform of PT Jamsostek

Union calls for urgent reform of PT Jamsostek JAKARTA (JP): Labor leaders blasted yesterday state-owned insurance company PT Jamsostek, which has collected billions of rupiah in workers' contributions, for failing its clients in this time of need. The leaders of the Federation of All-Indonesia Workers Union said they had not heard of any money being spent recently to help the millions of workers who had lost their jobs in the economic crisis.

Govt to reimburse remaining depositors of 16 closed banks

Govt to reimburse remaining depositors of 16 closed banks JAKARTA (JP): After four months of uncertainty, customers of 16 banks closed by the government last year waiting to recover deposits can now rest assured that their money is safe.

Aniston's 'Picture Perfect' focuses on love

Aniston's 'Picture Perfect' focuses on love JAKARTA (JP): Valentine's is now past, but Cupid's arrow may still be in your future. Still reason for caution, however, as grand celebrations with a new or old love interest may no longer be advisable in this economic crunch. Magical movie moments, packing value for money, may be the best bet this weekend. The latest offering at local movie theaters, Picture Perfect, is celluloid proof that love is most definitely in the air.

Australia to keep strict immigration rules

Australia to keep strict immigration rules CANBERRA (AP): The Australian government rejected suggestions yesterday it should relax immigration laws and allow low-skilled Indonesian workers temporary entry as shelter from Indonesia's economic crisis. Indonesian Ambassador to Australia Wiryono Sastrohandoyo Thursday said Australia should consider allowing Indonesian laborers to enter as guest workers as a way to ease the current economic and social unrest there. "Indonesia in the past...

General concerned over unrest

General concerned over unrest JAKARTA (JP): The newly appointed chief of the Army's Strategic Reserve Command (Kostrad), Lt. Gen. Prabowo Subianto, expressed concern yesterday over the continuing social unrest as many areas remained tense. No fresh riots were reported yesterday but the Southeast Sulawesi capital Kendari and the North Sumatra town of Rantau Prapat, the scene of major unrest Thursday, were tense, officials said.

Who's hoarding what?

Who's hoarding what? In big cities, the police and military have been breaking open warehouses stacked high with basic foodstuffs. In many small towns, people have been ransacking shops and looting their contents. In East Java, rice processors have been attacked by people angered at seeing piles of rice in their barns. In Jakarta, shoppers have been robbed and attacked as they loaded goods into their cars. The nation is in a frenzy.

Indonesia delays oil imports for one month

Indonesia delays oil imports for one month SINGAPORE (Reuters): Indonesia has delayed key imports of oil products for one month and its affiliated oil buyers are asking for extended credit to help smooth over the currency crisis, oil industry sources said yesterday. State oil firm Pertamina has delayed the delivery of 135,000 tons (one million barrels) of gas oil and kerosene from state-oil firm Kuwait Petroleum Corp (KPC), the sources said.

Govt has not done enough

Govt has not done enough There is a disturbing mistake in my article "Prevention key to public order" published by The Jakarta Post Feb. 16. In the eighth paragraph it is written: It should be admitted that so far the government has done enough to put an end to the social, political and economic gap between wealthy Indonesians of Chinese origin, who are dominant in economic activities, on one side, and the relatively poor indigenous, on the other.

Banking stability needed to support currency peg

Banking stability needed to support currency peg The government seems determined to adopt a currency board system (CBS), under which the rupiah will be set at a fixed exchange rate to the U.S. dollar, to stabilize Indonesia's currency exchange rates. Manggi Habir, research director of PT Bahana Securities, discusses the issue. Question: Do you consider that Indonesia is ready to adopt a currency board system (CBS)?

Wiranto urged to make ABRI more democratic

Wiranto urged to make ABRI more democratic JAKARTA (JP): Gen. Wiranto took over the command of the Indonesian Armed Forces (ABRI) from Gen. Feisal Tanjung yesterday amid calls from senior officers that he develop the military into a more democratic institution. Two senior ABRI members, Gen. (ret) Abdul Haris Nasution and Gen. (ret) Leonardus Benjamin Moerdani, expressed hope that under Wiranto the Armed Forces could be more heedful of and responsive to people's aspirations.

Police detain housemaid over robbery

Police detain housemaid over robbery JAKARTA (JP): Police have detained a 40-year-old housemaid for her alleged involvement in a robbery at the home of a Nigerian national in Permata Hijau, South Jakarta, an officer said. "We have detained, not incarcerated, the suspect at the police station for questioning," city police spokesman Lt. Col. E. Aritonang said Thursday. Police are still looking for two men and two women who are believed to be accomplices of the suspect, Sumiah.

RI stays in Fed Cup Asia Oceania qualifying group I

RI stays in Fed Cup Asia Oceania qualifying group I JAKARTA (JP): The Indonesia Fed Cup tennis team reached its ambition to stay in the Asia Oceania qualifying group I despite its 1-2 loss to China in Bangkok yesterday. A release from the Indonesian Tennis Association said first singles Wynne Prakusya defeated Jing Qian Yi 6-3, 6-4 but second singles Wukirasih Sawondari, a 19th SEA Games gold medalist, failed to follow in her companion's footsteps as she lost 2-6, 3- 6 to Lili.

PSSI believes report on collusion practices

PSSI believes report on collusion practices JAKARTA (JP): The All Indonesian Soccer Federation (PSSI) believes practices of collusion between referees and clubs exist. PSSI spokesman Tondo Widodo said Thursday an association investigative team headed by Adang Ruchiatna uncovered alleged collusive practices after collecting data and questioning a number of witnesses. "Many referees were found to be involved in collusion.