Indonesian Political, Business & Finance News

Archive: 14 March 1998

56 articles found

RI, IMF need to find compromise

RI, IMF need to find compromise Indonesia has branded the International Monetary Fund (IMF) reforms unconstitutional after the Fund announced a delay in the next installment of loans. University of Indonesia economist Sri Mulyani Indrawati , discusses possible impacts of the rift. Question: On Sunday, President Soeharto said that parts of the IMF reform package were not in line with Article 33 of the Constitution, which stipulates that Indonesia's economy should be based on family principles.

2,000 suffering from haze-related respiratory problems

2,000 suffering from haze-related respiratory problems JAKARTA (JP): More than 2,000 residents of the East Kalimantan cities of Balikpapan and Samarinda have suffered from respiratory problems in the last two months due to the haze resulting from reignited forest fires. The head of the provincial office of the Ministry of Health, Awang Joenani, said yesterday that 1,863 patients reported such problems in February and 361 new patients had already been treated in the first nine days of March.

Carmakers cut output as demand slumps

Carmakers cut output as demand slumps Indonesia's car industry is by no means the only one to be suffering from a severe downturn in demand as the country's economic woes continue. Sluggish demand in Japan for big-ticket items finally caused its carmakers to begin large-scale production cuts. The reductions are expected to hurt chances of an economic recovery, as the automakers and the rest of the auto industry contribute about 10 percent of the nation's gross domestic product.

Regent to probe misuse of wages

Regent to probe misuse of wages TANGERANG (JP): Regent Saifullah AR promised yesterday to look into reports that a subdistrict chief had embezzled money from the wages of laborers taking part in a government-sponsored project. Saifullah said he would summon Kresek subdistrict chief Bejo Mulyono following a demonstration in which the workers accused the official of unlawfully deducting their wages.

Our careers are on the line, say Bouraq pilots

Our careers are on the line, say Bouraq pilots JAKARTA (JP): The careers of 14 suspended Bouraq Airlines pilots hang in the balance because they cannot extend their flying licenses, the group said here yesterday. Andre Tambingon, one of the pilots, said the civil aviation safety regulation stipulated that to extend the license, a pilot must have a minimum of 10 flying hours in six months or risk having his/her license revoked. "Our indefinite layoff means that we cannot fly aircraft.

TV media firms allowed to go public

TV media firms allowed to go public JAKARTA (JP): The Ministry of Information has given approval to three television and multimedia companies to sell their shares to the public, a company executive said yesterday. Television broadcasting firms PT Rajawali Citra Televisi Indonesia (RCTI) and PT Surya Citra Televisi (SCTV), and multimedia company PT Datakom Asia have been given the green light by information minister R.

Conversion Rates

Conversion Rates Jakarta (JP): Bank Ekspor Impor Indonesia's (Bank Exim) indicative conversion rates on March 13, 1998: Buying Selling Rp Rp U.S dollar 1 9,500.00 11,500.00 Austrian shilling 1 681.10 898.10 Australian dollar 1 6,097.00 7,514.70 Belgian franc 1 240.50 295.30 Canadian dollar 1 6,440.20 7,894.70 Swiss franc 1 6,103.30 7,494.90 Deutschemark 1 4,945.20 6,115.70 Danish krone 1 1,301.30 1,598.70 French franc 1 1,478.70 1,818.50 Poundsterling 1 15,087.80 18,481.50 Hong Kong dollar 1...

KL asks RI for help to send home illegals

KL asks RI for help to send home illegals KUALA LUMPUR (DPA): Malaysia yesterday urged Indonesia to send navy ships to take home about 17,000 of its nationals who entered the country illegally, saying Jakarta shared the burden of repatriating them home. Foreign Minister Abdullah Ahmad Badawi pressed Malaysia's views in a meeting yesterday with Indonesia's ambassador to Malaysia, Muhammad Jacob Dasto.

Thai sugar firm hangs RI investment

Thai sugar firm hangs RI investment SUPHAN BURI, Thailand (Reuters): Thailand's major sugar group Mitr Phol Sugar Corp said yesterday it had decided to suspend investment in a sugar mill in troubled Indonesia. Isara Vongkusolkit, the company's president, told Reuters that a liquidity squeeze in Thailand and an unsettling economic situation in Indonesia had forced it to suspend plans to build a 3,000 tons/day sugar mill in that country.

B.J. Habibie moves into Merdeka Selatan Palace

B.J. Habibie moves into Merdeka Selatan Palace JAKARTA (JP): B.J. Habibie had a light first day in his new office at Merdeka Selatan Palace yesterday, receiving a foreign dignitary and learning official protocol. Visiting Japanese vice finance minister Eisuke Sakakibara became Habibie's first official guest after being sworn in last Wednesday.

Automotive holiday

Automotive holiday The car industry is not the only one feeling the heat as the economy continues its downward slide. Due to the increasing costs associated with newspaper production, pages are again being trimmed from The Jakarta Post, and the Automotive Post has become a casualty.

IMF vs CBS

IMF vs CBS In exact science, 2+2=4 and no one will argue about its correctness. But we cannot say the same thing about economics. It is said economics is a dismal science and that it is actually common knowledge made difficult. Let us take, for example, the currency board system (CBS), which presented to Indonesia by a professor of Johns Hopkins University. His theory was successfully applied to, among others, Argentina and Estonia when those countries experienced a monetary crisis.

Ananda records fastest time

Ananda records fastest time JAKARTA (JP): Indonesian rising Formula III racing star Ananda Mikola scored the fastest time in two tests during practice at the Magione circuit in Italy, Thursday. In the first test of 40 laps, Ananda, driving the Dallara 398, recorded a time of 1:33.02 and in the second test, clocked 1:33.51. Both times were considered the fastest among the other racers. Ananda is a member of the Marlboro Humpuss team.

Charges to be laid in soccer scam

Charges to be laid in soccer scam JAKARTA (JP): At least three of the 15 witnesses who have been questioned in connection with an alleged soccer match-fixing and bribery scam will be named suspects, police said yesterday. City police spokesman Lt. Col. E. Aritonang said officers were preparing to interrogate the suspects next Wednesday.

Hashimoto on tough mission to Indonesia

Hashimoto on tough mission to Indonesia TOKYO (AFP): Japanese Prime Minister Ryutaro Hashimoto prepared yesterday for a tough but critical mission -- persuading Indonesian President Soeharto to bow to IMF demands for economic reform. Hashimoto will visit Jakarta late Saturday and hold a summit meeting on Sunday with Soeharto, who began his seventh term in office this week, a foreign ministry official said.

Soeharto unveils cabinet today

Soeharto unveils cabinet today JAKARTA (JP): President Soeharto is expected to announce the lineup of the new cabinet this morning, a presidential household official said yesterday. M. Basyuni told reporters that the new ministers would be inducted by the President at the State Palace on Monday. On Tuesday, Soeharto will preside over the new cabinet's inaugural meeting, Basyuni said in a short statement.

Keepers struggle to contain animals

Keepers struggle to contain animals PASURUAN, East Java: Keepers at the Prigen Safari Park are being kept extra busy keeping the 1,000 animals inside the park as more than 500 meters of barbed wire and fences surrounding it have been stolen in the past two months. Park official Eny Yuscefa told journalists that they had not been able to capture the culprit, but added that police were investigating the thefts.

Aceh people donate gold again

Aceh people donate gold again JAKARTA (JP): The people of Aceh province once again displayed their high sense of altruism yesterday when they donated 60 kilograms of gold and 1,900 items of jewelry to the nation. The donation was presented by Aceh Governor Syamsuddin Machmud on behalf of the province's population to the head of the presidential household, M. Basyuni, representing President Soeharto.

Bimantara denies monopoly allegation

Bimantara denies monopoly allegation JAKARTA (JP): PT Bimantara Cakra Nusa, the automotive division of the diversified Bimantara Group has denied reports that it would monopolize the import of public transportation auto components subsidized by the government. Company president director Jongkie D. Sugiarto said in a statement yesterday that Bimantara never asked for the job, and that other parties, including the public transportation cooperatives should also be given the opportunities.

Stocks, rupiah up on growing optimism

Stocks, rupiah up on growing optimism JAKARTA (JP): Stock prices on the Jakarta Stock Exchange (JSX) rose 1.7 percent yesterday on growing market speculation that the government would soon peg the rupiah to the U.S. dollar at a fixed rate, stockbrokers said. They said the market also anticipated that the new cabinet ministers, to be announced by President Soeharto this morning, would soon give an impetus to solve the crisis.

International phone rates raised by 25%, ministry says

International phone rates raised by 25%, ministry says JAKARTA (JP): The Ministry of Tourism, Post and Telecommunications announced yesterday a 25 percent increase in international telephone call rates due to the depreciation of the rupiah against the U.S. dollar. The ministry said the new call rates will be effective from March 15. The increase includes standard international telephone tariffs to 204 countries and international telex tariffs to 206 countries.

Utut still in second place

Utut still in second place JAKARTA (JP): Indonesian Grandmaster Utut Adianto is still in second place in the Grandmasters Championship in Calicut, India on Thursday. Utut defeated International Master Ravi Lanka of India in the 48th move of the Dutch opening. The match lasted five hours 20 minutes. With this victory, Utut recorded 5 points together with IM Ziaur Rachman, also of India. Ziaur won over GM Komliakov of Russia. Indian Abhijit Kunte still leads the rangkings with 5.5 points.

Indonesian workers face execution in Saudi Arabia

Indonesian workers face execution in Saudi Arabia JAKARTA (JP): Two Indonesian migrant workers in Saudi Arabia may face the death penalty if found guilty of murder. The Ministry of Manpower's director general of labor placement, Jack Iskandarsyah, said that Dimiyati Usro and another unnamed Indonesian were currently on trial for murder. Dimiyati is accused of murdering his wife and his employer's parents, while the other Indonesian is charged with bludgeoning his employer to death.

Angry Agung in acid attack

Angry Agung in acid attack CILACAP, Central Java: In a jealous fit, Agung Guritno, 37, doused his fiance's face with acid causing severe burns and partial blindness. Agung admitted to police yesterday afternoon that he was jealous after hearing that Kanti Sriastuti, 32, had gone out one evening with another man. "I became even more enraged when she wouldn't admit it," he said.

Confidence building seen as top priority

Confidence building seen as top priority JAKARTA (JP): The biggest challenge for the new cabinet ministers will be to restore both domestic and international confidence in the country's economy, outgoing Minister of Industry and Trade Tunky Ariwibowo said yesterday. "Our main problem now is that we have lost the confidence of the global community because of the crisis, and it is hurting our industries," Tunky told journalists at his farewell luncheon with members of the media.

Games fund-raising a lesson for ministry

Games fund-raising a lesson for ministry JAKARTA (JP): The mismanagement of fund-raising revenue for the 19th SEA Games has proven to be a lesson for the Ministry of Social Services in that it needs to be more careful in issuing decrees.

Singapore awaits response to Indonesian L/C scheme

Singapore awaits response to Indonesian L/C scheme SINGAPORE (Reuters): Singapore said yesterday it was awaiting responses from other countries before going ahead with its plan for trade financing guarantees for Indonesia. "The proposal is awaiting responses from countries to which the prime minister has written," Foreign Minister Shanmugam Jayakumar told parliament.

Human impact of triple-tier system surfaces

Human impact of triple-tier system surfaces JAKARTA (JP): About 3,263 families and 1,278 houses will be affected by construction of the first stage of the triple-tier transit system, an environmental consultant said yesterday. The first phase involves laying 14 kilometers of track from Dipo in South Jakarta to Tanah Abang in Central Jakarta. Moira S.

Japan plans rice aid to RI

Japan plans rice aid to RI TOKYO (Reuters): Japan has not yet agreed on details of its food aid to Indonesia ahead of Prime Minister Ryutaro Hashimoto's trip to Jakarta this weekend, an official at the Foreign Ministry said yesterday. "We haven't yet decided the amount (of the rice aid) or the way to provide the food," the official said.

DGS poised to perform well despite crisis

DGS poised to perform well despite crisis JAKARTA (JP): Indonesia's only locally listed fishing company, PT Daya Guna Samudera (DGS), will perform well despite the monetary crisis due to its strong export earnings, a joint venture security company has reported.

Freeport copper expansion not good news: Analysts

Freeport copper expansion not good news: Analysts LONDON (Reuters): Plans by Freeport McMoRan Copper & Gold Inc to increase its Indonesian mine's copper output by 43 percent did not bode well for the price of the metal, analysts said on Thursday. Freeport announced earlier on Thursday that it would "hunker down and go" and bring forward production increases at its Grasberg operation in Indonesia due to current market conditions.

Cathay offers free night

Cathay offers free night JAKARTA (JP): Hong Kong's Cathay Pacific has announced a new promotion drive offering passengers a free night in leading hotels when they stopover in Hong Kong. The company said here yesterday that passengers would be given a free night of accommodation in Hong Kong when they fly back from long destinations such as Europe or North American through Hong Kong on Cathay Pacific.

BI urged to favor credit lines over market operations

BI urged to favor credit lines over market operations JAKARTA (JP): Bank Indonesia (BI) should direct more liquidity to productive sectors through credit lines to reduce inflation and bank interest rates, economist Nyoman Moena said. Moena, former BI director, said the central bank's current policy of market operation through issuing Bank Indonesia Certificates (SBIs) and buying commercial banks' money market securities (SBPUs) had failed to revive the dying economy.

Arrested playwright, activists sue police

Arrested playwright, activists sue police JAKARTA (JP): The Indonesian Legal Aid and Human Rights Association (PBHI) has filed a pre-trial lawsuit against the police over the arrest of the playwright Ratna Sarumpaet and eight other activists last Tuesday.

Bank Danamon responds

Bank Danamon responds Bank Danamon would like to extend an apology to Mr. Michael Stewart Knight, a Prima dollar account holder at our Melawai branch, who wrote a complaint published in the "Your Letters" section of the March 11 edition of The Jakarta Post. Due to the present economic uncertainty and considerations of our customer's needs, there is a need to enhance the quality of our policy.

Nicholson's latest film now playing at theaters

Nicholson's latest film now playing at theaters JAKARTA (JP): This is the time in the week to excuse yourself from the humdrum daily routine. Movie ticket prices may have increased by an average of 20 percent, but taking in an hour or two of celluloid is still much cheaper than a night out at a bar or fancy restaurant dinners. Two new offerings on local screens, a comedy and an action- packed thriller, are ready to take you into their worlds. As Good As It Gets. Cast: Helen Hunt, Jack Nicholson.

Police round up 46 without ID cards

Police round up 46 without ID cards JAKARTA (JP): Police and government officials in Tangerang netted 46 people, who had hit the streets without ID cards, in an operation early Thursday. Tangerang Police chief Lt. Col. Aryanto Boedihardjo said the government would "take the necessary legal action" against those without identification. He did not elaborate.

Nobody wants a revolution

Nobody wants a revolution No doubt many people overseas, when they read about Indonesia, believe that this nation is headed toward a "violent upheaval". Let us lay aside the sensationalist headlines for a while and take a realistic look at our present situation. Not a single Indonesian I know about, in or out of the government, believes that the answer to our country's problems is through a bloody revolution.

Two suspected robbers shot dead by policemen

Two suspected robbers shot dead by policemen JAKARTA (JP): Police have shot dead two alleged robbers for resisting arrest in the Pamulang district of Tangerang, West Java, and Pademangan in North Jakarta. The victims were identified as Sutopo and Lias, respectively. South Jakarta Police chief Lt. Col. Yudi Sushariyanto said Sutopo was shot yesterday because he attacked an officer with a machete as police tried to apprehend him.

350 suspected illegals netted

350 suspected illegals netted SINGAPORE (AP): In the latest operation against illegal immigrants from crisis-stricken Southeast Asian countries, Singapore police arrested some 350 suspected immigrants in an overnight raid. In an islandwide operation Thursday night, police raided coffee shops, construction sites and lodging houses. Those arrested came from China, Thailand, Indonesia and Bangladesh. Many of them were working illegally at construction sites.

Six students go on hunger strike

Six students go on hunger strike SALATIGA, Central Java: Six students from the state-run Islamic Institute (STAIN) here began a hunger strike yesterday to protest the soaring prices of basis essentials. The protesting students stayed inside "a tent of concern" set up on their campus. They urged the government yesterday to solve the country's deepening crisis.

Harmoko says Golkar open to people's aspirations

Harmoko says Golkar open to people's aspirations JAKARTA (JP): Golkar chairman Harmoko said yesterday the political organization would be ready to listen and hold dialogs with any party willing to contribute opinions to help resolve the monetary crisis. Addressing a media briefing at Golkar's secretariat in Slipi, West Jakarta, Harmoko said Golkar's commitment was made in response to President Soeharto's readiness to listen to even harsh criticism from the people.

Japan shares lead regional gains

Japan shares lead regional gains TOKYO (AFP): Japanese share prices led regional gains yesterday with a rally balancing losses earlier in the week, amid reports that the government would continue efforts to prop up the economy, dealers said. Hong Kong shares were 1.4 percent higher after a bumpy ride throughout the week, influenced by regional concern over Indonesia's standoff with the International Monetary Fund (IMF) on economic reforms.

U.S., following IMF, hints at flexibility on Indonesia

U.S., following IMF, hints at flexibility on Indonesia WASHINGTON (AFP): The United States, following the lead of the IMF, on Thursday expressed flexibility toward Indonesia and said it wanted to "engage constructively" in the country's economic recovery. Treasury Secretary Robert Rubin suggested to reporters following Congressional testimony that the United States could eventually support consideration of a currency peg in Indonesia, administered by a special currency board.

Budihardjo to be a deputy governor

Budihardjo to be a deputy governor JAKARTA (JP): Budihardjo Sukmadi, head of the city's Development Planning Board (Bappeda), is expected to be promoted to deputy governor for development affairs, replacing TB.M. Rais who has served the city for more than 30 years. Budihardjo, who was nominated by Governor Sutiyoso, was interviewed by members of the City Council yesterday.

Asia currencies stuck on Indonesia, baht shines

Asia currencies stuck on Indonesia, baht shines SINGAPORE (Reuters): Asian currencies were mostly steady yesterday as activity wound down ahead of an event-filled weekend in Indonesia. Dealers said trade was subdued as the market awaited the formation of Indonesia's new cabinet on Saturday morning, while pressure mounted on Jakarta to stick to International Monetary Fund reforms. A senior IMF team, U.S.

HK citizen faces lawsuit

HK citizen faces lawsuit JAKARTA (JP): The Ministry of Justice's directorate general of immigration will file suit against a Hong Kong citizen for illegally obtaining Indonesian citizenship, an official said. Immigration director of supervision and control Zaiman Nurmatias announced on Wednesday that his office had compiled evidence that Li Wing Fong, 46, had obtained citizenship illegally.

Japan pulls out of SE Asia

Japan pulls out of SE Asia BANGKOK: Japanese carmakers are expected to have a reduced presence in Southeast Asia as the U.S. Big Three move into the region. According to Bangkok-based Automotive Research Asia, Japanese automakers will assemble 66 percent of all vehicles produced in four Southeast Asian countries in 2002, down from 76 percent at present. Furthermore, the U.S.

Man hangs himself

Man hangs himself JAKARTA (JP): A 28-year-old man committed suicide on Thrusday by hanging himself from a jackfruit tree, raising the number of suicides in the greater Jakarta area to 12 this year. The man, Supriyono, was a resident of Tipar village, in Bogor's Cimanggis district. Sutarno, the victim's uncle, said Supriyono was already dead when neighbors found him hanging on the tree.

Residents told to beware of rabies

Residents told to beware of rabies KENDARI, Southeast Sulawesi: The provincial government has warned residents to beware of rabies, which is mostly spread through bites from animals such as dogs and monkeys. Provincial spokesman Amir Manaf said yesterday that the province's health office had received at least 59 reports of rabies cases: 37 from the Kolaka regency, 14 from the Kendari mayoralty, and eight from the Kendari regency.

Stock Exchange

Stock Exchange Stock prices on the Jakarta Stock Exchange (in rupiah) on March 13, 1998: Shares Close Change Trading Volume -------------------------------------------------------------- Ades Alfindo 800 0 0 AHAP Insurance 400 0 0 Alter Abadi 550 25 5,000 Alumindo Light Metal 325 0 511,000 Alumindo Perkasa 250 0 0 Aneka Kimia Raya 575 0 54,000 Aneka Tambang 1,600 0 531,000 Anwar Sierad 400 100 1,649,000 Apac Centertex Corp.

Fire engulfs shopping mall

Fire engulfs shopping mall PALU, Central Sulawesi: A shopping complex in Tolitoli town here was set ablaze early Thursday with six shops and five kiosks being burned down, Antara reported yesterday. No casualties were reported. The cause of the fire was still being investigated, the news agency quoted Buol Tolitoli police chief Lt. Col. Wancik Wahab as saying. The fire was the second such blaze to hit the district in the past two weeks, it said.

Morgue makes way for 5 more corpses

Morgue makes way for 5 more corpses JAKARTA (JP): Cipto Mangunkusumo General Hospital in Central Jakarta received five unidentified corpses between Wednesday afternoon and early Thursday from police, a hospital official said yesterday. Ecip, who oversees the hospital's morgue, said police told him the corpses were found in various parts of Greater Jakarta. "Four were picked up in Bekasi and one in Tebet, South Jakarta," he said as quoted by Antara.

Car rental driver found dying

Car rental driver found dying JAKARTA (JP): A car rental driver, who claims to have been beaten by three youngsters, was found in a critical condition on Jl. Patal Senayan, Central Jakarta, yesterday morning. His vehicle was missing. The driver, identified as A'ang, 50, was taken to the rental base on Jl. Teluk Betung in Central Jakarta before being rushed to Abdi Waluyo hospital on Jl. HOS Cokroaminoto in Menteng. His condition was becoming critical, Yusuf Munawar, the owner of the car, said.

Composers' Week in the swing to debut latest compositions

Composers' Week in the swing to debut latest compositions JAKARTA (JP): Ten years after disappearing from the cultural events calendar, Composers' Week will once again entertain Jakartans as talented artists perform their latest compositions. Formerly an annual event, Composers' Week was first held in 1979, but it halted in 1988 due to the absence of people who were really committed to making it into a forum to develop talent.

I.B. Sudjana calls for return of oil ceiling

I.B. Sudjana calls for return of oil ceiling JAKARTA (JP): Outgoing Minister of Mines and Energy I.B. Sudjana, who is also president of the Organization of Petroleum Exporting Countries (OPEC), has called on the organization to return to the old oil supply quota to improve oil prices. The old supply quota was 25.03 million barrel per day (bpd), compared with the current quota of 27.5 million bpd, which was agreed on by OPEC ministers during a meeting last November in Jakarta.