Indonesian Political, Business & Finance News

Archive: 5 March 1998

59 articles found

Where to go in Surabaya:

Where to go in Surabaya: Music and Entertainment * Hyatt Regency Surabaya, Jl. Jend. Basuki Rakhmat 106-128: - The Tavern Pub: Cosindos Band, daily except Sunday 9 p.m. to 1 a.m., Hazztoria Band, live music performance on Sunday, 8:30 p.m. to 12:30 a.m. - Atrium Lounge: Solo Pianist, Monday to Friday, 7 p.m. to 10:45 p.m., Saturday at 7 a.m. to 11 p.m. - Lobby: Gamelan, Traditional Music, daily, 6 p.m. to 12 p.m. * Shangri-La Hotel, Jl. May. Jend.

Stock markets head down as worries revive

Stock markets head down as worries revive SINGAPORE (AFP): Most Asia-Pacific stock markets fell yesterday as currencies lost ground amid renewed worries over the regional financial crisis. Fears that the International Monetary Fund (IMF) may withhold rescue funds to Indonesia coupled with concerns over the health of Malaysia's banking system hung over regional financial markets.

Pakpahan disappointed with Soeharto's MPR speech

Pakpahan disappointed with Soeharto's MPR speech JAKARTA (JP): Jailed labor leader Muchtar Pakpahan expressed his disappointment yesterday with President Soeharto's accountability speech which he said neglected labor problems over the past five years.

Stock prices down 3% on IMF concerns

Stock prices down 3% on IMF concerns JAKARTA (JP): Stock prices on the Jakarta Stock Exchange (JSX) failed to sustain early gains yesterday as heavy selling hit the market before the close of trading. The JSX Composite Index dropped 3 percent to close at 502.91 from 518.68 the previous day, with 483.93 million shares worth Rp 606.95 billion (US$64.22 million) changing hands.

Dollar rate for reforestation fees raised

Dollar rate for reforestation fees raised JAKARTA (JP): The government has increased the dollar rate for reforestation fees imposed on timber companies to Rp 5,000 from Rp 3,000 due to a continued drop in the country's currency. Outgoing Minister of Forestry Djamaludin Suryohadikusumo said yesterday the increase was made in Presidential Decree No. 32/1998, issued Feb. 25.

Stocks an option during high inflation

Stocks an option during high inflation By Reiner Simanjuntak JAKARTA (JP): The current uncertainty and looming hyperinflation in Indonesia's economy demands investors to be especially shrewd in assessing investment risk, fund managers have warned. They said that people should not put all their eggs in one basket. But the stock market may offer good opportunities for optimum return, especially in this high inflation environment.

Soeharto's challenge

Soeharto's challenge Historians 50 years hence will undoubtedly view President Soeharto's ascension to power in 1965 as a turning point in the fortunes of Southeast Asia. When he first took office, seven in 10 Indonesians lived in absolute poverty. Thirty-three years later, the country is "within striking distance" of eliminating poverty altogether, according to the World Bank. By any measure, this is a heroic achievement. Mr.

Stock Exchange

Stock Exchange Stock prices on the Jakarta Stock Exchange (in rupiah) on March 4, 1998: Shares Close Change Trading Volume -------------------------------------------------------------- Ades Alfindo 825 25 66,000 AHAP Insurance 400 0 0 Alter Abadi 550 25 5,000 Alumindo Light Metal 325 -75 794,000 Alumindo Perkasa 275 0 0 Aneka Kimia Raya 600 -25 146,500 Aneka Tambang 1,600 -50 2,040,500 Anwar Sierad 275 -25 524,500 Apac Centertex Corp.

Minister says 'D&R' cover degrading

Minister says 'D&R' cover degrading JAKARTA (JP): Information Minister R. Hartono blasted Detektif dan Romantika (D&R) weekly magazine yesterday for portraying President Soeharto on the magazine's cover this week as the king of spades. "In my opinion it is very degrading because Soeharto is not a king, and we do not have a kingdom here," Hartono said.

On self-control

On self-control In the context of the current monetary crisis that has led to a national economic crisis, many informal leaders have asked the people to exercise self-control and patience. They have also appealed to the people not to be incited into rioting. In my opinion the appeal has its benefits because riots are only advantageous for thieves, hoodlums and anarchists.

New South Korean PM is former spy chief

New South Korean PM is former spy chief SEOUL (Reuters): South Korea's new "acting" prime minister Kim Jong-pil, 72, has been at the center of Korean politics and a controversial figure for nearly four decades. His appointment was blocked in the National Assembly by the opposition Grand National Party -- which still retains a majority despite losing December's election -- because of his checkered career.

Album

Album Photo A: Spelling JP/bay YOU SPELT IT WRONG: Otto Daryono of the Golkar faction corrects the spelling on his name plaque which was missing a "Y". Photo C: Joke Antara IT'S FOR YOU: Director General for Taxes Fuad Bawazier jokes with a female reporter asking her to listen to a call he is making.

'Tajuk' biweekly magazine relaunched

'Tajuk' biweekly magazine relaunched JAKARTA (JP): While most nationwide media companies are lamenting the impact of the prolonged economic crisis on their existence, PT Gema Juang relaunched yesterday Tajuk as a biweekly magazine. Aimed at top business executives and with a new look, Tajuk will focus on surveys and investigative reports to give the readers a deeper knowledge of contemporary issues, the magazine's general manager, Marah Sakti Siregar, said.

Controversy continues over issue of ministers' wealth

Controversy continues over issue of ministers' wealth JAKARTA (JP): Assembly members dodged queries yesterday about whether members of the next cabinet should have their personal wealth audited before and after their term of office, with some saying the issue was entirely a matter for the president. "It's the prerogative of the next president to decide whether or not such an audit is necessary," said Siti Hardiyanti Rukmana of the Golkar faction, echoing earlier statements by colleagues R.

The art of staying awake

The art of staying awake JAKARTA (JP): After hours of meetings one really cannot blame Assembly members who doze off for a minute or two. Maybe her military training had something to do with it, but Lt. Col. Christina Rante Tana has her own special way to fight General Session-induced drowsiness. "When I get sleepy I just look around me at all those who are nodding off or desperately trying to stay awake. My own drowsiness then disappears," the member of the Armed Forces faction said.

WB signs loan for Bengkulu

WB signs loan for Bengkulu WASHINGTON (Reuters): The World Bank yesterday approved a $25.7 million loan to ease poverty in Indonesia's Bengkulu province, but a bank official said the loan was not linked to a $40 billion international rescue deal. "This project is part of Indonesia's long-term rural development plan. It is not part of the rescue package," said the official, who asked not to be named.

Police find 13kg of ganja in a car

Police find 13kg of ganja in a car MEDAN, North Sumatra: Police detectives have arrested a 48- year-old woman who was caught red handed with 13 kilograms of marijuana in her car on Jl. Binjai here. North Sumatra Police chief Brig. Gen. Sambas Selasa said yesterday the suspect, identified only as RC, was apprehended Tuesday evening. Sambas, who interrogated the alleged drug trafficker, said the woman admitted buying the marijuana in Blangkejeren, in southeast Aceh, for Rp 600,000 per kilogram.

PPP breaks ranks on Soeharto speech

PPP breaks ranks on Soeharto speech JAKARTA (JP): The United Development Party (PPP) withheld its endorsement of President Soeharto's leadership accountability statement yesterday, saying it would announce its stand after the final debate scheduled for Monday. The other four factions in the People's Consultative Assembly, the dominant Golkar, the Armed Forces (ABRI), the Indonesian Democratic Party (PDI) and regional representatives, predictably accepted it.

U.S. worried about RI, may block next handout

U.S. worried about RI, may block next handout WASHINGTON (Agencies): A senior U.S. official said on Tuesday Washington would oppose additional rescue funds for troubled Indonesia unless reforms were clearly back on track. Deputy Treasury Secretary Lawrence Summers, briefing lawmakers on a U.S.

Remote Bengkulu province lacks healing hands

Remote Bengkulu province lacks healing hands By Maswandi BENGKULU (Antara): Bengkulu on Sumatra's windswept western coast is trying to cope with shortages of medical facilities and qualified personnel. The province has five hospitals, only one of them classified as a type B facility with full specialist services but limited subspecialist treatment.

Two killed by man with sickle

Two killed by man with sickle JAKARTA (JP): A top police official has defended Tuesday's shooting of an allegedly insane man by security personnel. Two people were killed during the incident in Pulogadung, East Jakarta, and three others were wounded. According to city police chief Maj. Gen. Hamami Nata yesterday, the shooting by police and military personnel was acceptable because they had no other option available at the time unless they wanted to see more people killed or wounded.

Sports needs special board, observer says

Sports needs special board, observer says JAKARTA (JP): A sports observer has urged the next government to set up an organization to handle the country's sports should the office of the sports ministry be combined with the education ministry. MF Siregar said Monday that he did not think it a good idea to combine the State Ministry of Youth Affairs and Sports with the Ministry of Education and Culture.

Protest over milk prices turns sour as 3 face court

Protest over milk prices turns sour as 3 face court JAKARTA (JP): Hundreds of people packed the public gallery at Central Jakarta District Court yesterday to watch the trial of three women who staged a peaceful protest last week over the rising price of milk. Sympathizers for the three -- Karlina Leksono, 40, Gadis Arivia, 33, and Wilasih Noviana, 30 -- distributed dozens of packets of milk powder and flowers to court visitors.

Habibie-Soeharto proximity 'will change' RI politics

Habibie-Soeharto proximity 'will change' RI politics JAKARTA (JP): Should B.J. Habibie be elected vice president, his close ties to President Soeharto will change the country's political constellation, two observers believe. Constitutional law expert Mahfud M.D. of the Yogyakarta-based Indonesian Islamic University and former Golkar legislator Marzuki Darusman both said that the proximity might make it easier for Soeharto -- whose reelection is almost certain -- to share his duties with Habibie.

Mining companies poised to reap profits

Mining companies poised to reap profits JAKARTA (JP): Mining company shares remain attractive for investment despite gloomy prospects in other business sectors, say analysts. Bahana Securities said in its latest research report released early this week that mining firms such as tin producer PT Tambang Timah and gold and nickel producer PT Aneka Tambang remained healthy despite the country's economic crisis.

Does Indonesia need new bankruptcy laws?

Does Indonesia need new bankruptcy laws? By Hafzan Taher and Ludo Mees JAKARTA (JP); A number of recent newspaper reports have suggested that the Indonesian government is preparing a new bankruptcy law to deal with the many business ventures rendered insolvent by the monetary crisis.

Artha Daya not to dominate coal sales

Artha Daya not to dominate coal sales JAKARTA (JP): Minister of Mines and Energy I.B. Sudjana has said that PT Artha Daya Coalindo would not monopolize sales of coal which the government receives from private coal mining contractors. Sudjana said the government might also permit other interested companies to handle the sales of its coal.

Indonesian buys 24.9% stake in L&M

Indonesian buys 24.9% stake in L&M SINGAPORE (Reuters): Indonesian businessman Edwin Soeryadjaya has taken a 24.9 percent controlling stake in specialist engineering group L&M Group Investments Ltd, a statement from L&M said yesterday. Soeryadjaya bought 38.24 million L&M shares at S$0.50 each through Aragorn Assets Ltd (AAL), according to the statement issued to the Stock Exchange of Singapore.

Tonton might cycle at Asiad: Sports council

Tonton might cycle at Asiad: Sports council JAKARTA (JP): The National Sports Council's 13th Asian Games task force is considering including Tonton Susanto in the quadrennial event in December in Bangkok. The task force's chairman, Muhammad Hindarto, announced yesterday that cyclist Tonton had proven his skills by winning the East Asian division of the Tour de Langkawi in Malaysia last week. "He was not included on the team, but Tonton proved that his fighting spirit is great.

Crisis may affect regional security

Crisis may affect regional security SYDNEY (Reuters): Asia's economic crisis could slow the region's arms build up and undermine regional security, Australian Foreign Minister Alexander Downer said yesterday. "The economic crisis may affect the pace of modernization of defense capabilities in the region," Downer told a security conference grouping countries from the Association of South East Asian Nations (ASEAN) and their main allies.

Govt plans to raise school exam fees

Govt plans to raise school exam fees JAKARTA (JP): The city office of the Ministry of Education and Culture plans to hike the fees for final exams and national final exams for all schools. "We have proposed the hike to the governor. But there has been no answer to the proposal," Hadis Hadianegara, the office spokesman told The Jakarta Post yesterday.

Amalia learns the ropes

Amalia learns the ropes JAKARTA (JP): Being an Assembly member needs some courage, as Amalia Sianti Wiranto, at 21 the youngest People's Consultative Assembly member, has quickly found out. Among the "adversities" facing her is learning to cope with a barrage of questions from reporters. "There are too many questions. One at the time!" Amalia told reporters during a break in the meetings yesterday.

Textile export earnings seen to drop about 35%

Textile export earnings seen to drop about 35% JAKARTA (JP): A shortage of raw materials may cause the country's textile export earnings to fall about 35 percent to US$4 billion this year from $6.2 billion in 1997, the Indonesian Textile Association has predicted. The association's chairman, Bambang Riyadi Soegomo, said yesterday the supply of imported materials had become scarce because of financing problems.

'Armful' box a big attraction

'Armful' box a big attraction JAKARTA (JP): A safe that security officers provided for General Assembly participants to leave their firearms in proved a huge attraction yesterday. The safe, set on a small table at the entrance to the main assembly hall, might not have invoked curiosity had it not been conspicuously labeled "consignment of arms" with a black marker.

Student protests continue over prices and reforms

Student protests continue over prices and reforms JAKARTA (JP): Thousands of students again called on the government to lower the prices of daily essentials and accelerate political and economic reforms as a series of rallies in Java and Sulawesi continued yesterday. Unlike over the past two weeks, more than 2,000 students in the South Sulawesi capital of Ujungpandang left their colleagues in Java behind by marching on the streets in an attempt to force the authorities to meet their demands.

Tarmizi leads prayer to wish haj pilgrims a safe journey

Tarmizi leads prayer to wish haj pilgrims a safe journey JAKARTA (JP): Minister of Religious Affairs Tarmizi Taher led a modest prayer here yesterday to wish Indonesia's haj pilgrims, who will start departing for Saudi Arabia tomorrow, a safe journey. "I hope they all enjoy good health during their pious task, praying in the holy land at Mecca," he said during a speech.

Asian business executives against RI's CBS plan: Poll

Asian business executives against RI's CBS plan: Poll HONG KONG (Agencies): Asian business executives have given the thumbs down to a currency board system as a means of salvaging the embattled Indonesian rupiah, according to poll findings released yesterday. The Far Eastern Economic Review and CNBC Asia Business News poll found that 83 percent of executives surveyed did not believe a currency board system would rescue the rupiah, they said in news release.

RI, U.S. armies hold joint exercise

RI, U.S. armies hold joint exercise JAKARTA: Fifty Indonesian Army engineers have been involved in a month-long joint exercise with nine special U.S. army personnel in Bogor, West Java, Antara reported yesterday. The exercise, which began on Feb.

Education too commercialized: PDI

Education too commercialized: PDI JAKARTA (JP): Escalating school fees are threatening the country's efforts to promote education for all, the Indonesian Democratic Party (PDI) warned yesterday. Spokesman for the minority party Bambang Mintoko said the growing tendency among urban schools to "commercialize" education was particularly worrying.

ASEAN currency plan not instant cure: Analysts

ASEAN currency plan not instant cure: Analysts TOKYO (Reuters): A proposal to promote the use of local currencies for trade between ASEAN members may not be an instant panacea for the region's financial problems and could also face resistance from key members, economists say. While they agree that over-reliance on the U.S.

Effective and efficient

Effective and efficient I am extremely concerned about the monetary upheavals and the economic crisis. Trillions rupiah from oil and gas, general mining, energy, forestry, estate crops, agriculture, taxes and foreign loans seem to have entered into chaos. On the one hand, the man on the street and students were told for many years to save money. The value of their savings has strongly declined now and the interest on their savings is taxed.

RI should suspend debt payments: Sachs

RI should suspend debt payments: Sachs NEW YORK (Reuters): Indonesia should temporarily suspend corporate debt payments and rebuild a core of banks to allow some breathing room to rebuild its battered economy, Harvard University economist Jeffrey Sachs said Monday. Sachs criticized Jakarta's recent flirtation with a currency board, saying that a foreign exchange peg did not make sense. But he also blamed the International Monetary Fund (IMF) for triggering a crisis of confidence in Indonesia.

Feedmeal producers cut prices

Feedmeal producers cut prices JAKARTA (JP): The Association of Indonesian Feedmeal Producers said Tuesday that it had decided to reduce the price of feedmeal from the current Rp 1,850 (21 U.S. cents) per kilogram to Rp 1,600 per kilogram to help small-scale poultry farmers.

Asian currencies drop on Indonesian fears

Asian currencies drop on Indonesian fears SINGAPORE (Reuters): Asian currencies weakened yesterday amid fears the International Monetary Fund's next disbursement of aid to crisis-riddled Indonesia might be delayed. Senior banking sources in Jakarta said Indonesia's political preoccupations ahead of next week's election and the need to reassess some fundamental economic assumptions were likely to push back an IMF review of the country's performance.

Impact of new rate

Impact of new rate Your Message from the Publisher on the front page a few days ago was indeed a sad announcement for me. I have no choice but to finally stop subscribing to The Jakarta Post when the new rate is applied. I tell you frankly that I still subscribe to the Kompas daily and Kontan weekly. This is not because I am being unfair to you but I have to be fair to others at home -- I am the only active English-speaking person. I am afraid our rupiah is getting slimmer and slimmer.

Star's RI venture canceled

Star's RI venture canceled AMSTERDAM (Reuters): KNP Leykam said yesterday its "China Star" joint venture with Indonesia's April group had been canceled following KNP BT's sale of the former unit KNP Leykam to Sappi Limited. "The sale of KNP Leykam by KNP BT to Sappi Limited and the strategic reorganization of April make it inappropriate from this project to continue," KNP Leykam said.

Golkar officials against cabinet quotas

Golkar officials against cabinet quotas JAKARTA (JP): Two Golkar officials rejected yesterday a proposal that certain groups could ask for seats in the next cabinet. Golkar legislators in the People's Consultative Assembly (MPR), Siti Hardiyanti Rukmana and Mien Sugandhi, said it would be unethical for people to seek ministerial posts in the 1998/2003 cabinet. "No, they cannot ask for seats in the cabinet," Hardiyanti, who is better known as Mbak Tutut, told reporters.

Lamenting our education

Lamenting our education When Hong Kong-based Asia Magazine printed a list of the best Asian universities last year Indonesians were not offended to find their institutes of higher learning ranked below those of our neighboring countries.

Fischer mulls Goh's RI plan

Fischer mulls Goh's RI plan CANBERRA (Reuters): Australia was still considering supporting a Singaporean proposal for a multilateral system of guarantees to prop up Indonesian exports, Trade Minister Tim Fischer said on Wednesday. "We are... having further dialogue with Singapore and the issue is one which is still under consideration," Fischer, who is also deputy prime minister, told reporters.

Where to go in Bali:

Where to go in Bali: Exhibitions * Painting Exhibition: Image Dance by Made Budhiana at Ganesha Gallery, Four Seasons Resort, Jimbaran Bay, Nusa Dua, 12 p.m. to 8 p.m., until March 27. * Painting Exhibition: Ida Bagus Made, at Darga Gallery, Komplek Sanur Raya, No.21/22, Denpasar, March 14 to April 14. Music and entertainment * Grand Hyatt Bali, Nusa Dua: - Poolside: Pasar Senggol, daily, 6:30 p.m., Kecak Dance, Friday and Tuesday.

Habibie is news to some in his hometown area

Habibie is news to some in his hometown area JAKARTA (JP): B.J. Habibie's name may be on everybody's lips these days as the hot candidate for vice president, but in parts of his home province of South Sulawesi, many do not even know he has been nominated for the position. "We didn't know because in our village and several others where Habibie lived with his father, there aren't any radios or TVs," said Mrs. Rusmiati, a Nepo village resident.

The governor's new blazer

The governor's new blazer JAKARTA (JP): Attending the General Session is apparently not all work as some Assembly members were able yesterday to take time off to do some personal shopping. East Timor Governor Abilio Soares, who is a member of the regional representatives faction, sneaked off during a break to purchase a new blazer from the stands in one of the venue's side halls.

Daido Steel

Daido Steel We read in The Jakarta Post, March 2, 1998, an news article (page nine) entitled Japan's Daido goes bankrupt. We have checked with our principal, Daido Steel Co. Ltd.- Japan, and were informed that in Indonesia our principal has not been involved in a joint venture with a company named PT Daido Steel Indonesia. It should be noted that Daido Steel Co.

Golkar, ABRI push for extra presidential power

Golkar, ABRI push for extra presidential power JAKARTA (JP): The dominant Golkar and its main ally, the Armed Forces, are to ask the People's Consultative Assembly to pass a decree that will give extra powers to the next president. The two guaranteed yesterday that the implementation of the decree would follow legal procedures and not infringe on human rights or democracy.

Govt confirms end of Bulog monopolies

Govt confirms end of Bulog monopolies JAKARTA (JP): The government has asserted that it has abolished the monopolies of the State Logistics Agency (Bulog), except in rice, but that it would continue to subsidize prices of imported staples to ease the suffering of poor people. "The government has ended Bulog's monopolies in sugar and wheat flour in line with the IMF-brokered reform package," Minister/State Secretary Moerdiono said yesterday.

IMF-Plus: Crisis management

IMF-Plus: Crisis management By C.J. de Koning This is the first of two articles on the Indonesian financial crisis. JAKARTA (JP): In one of Asia's main languages the word crisis has two core elements: It constitutes a "threat", but also an "opportunity". The current Indonesian financial crisis has of course threatening elements like a weak rupiah, lower production, lower exports, higher inflation and higher unemployment levels. Many articles have been written about the threats.

Golkar tightens security measures at office entrance

Golkar tightens security measures at office entrance JAKARTA (JP): Dominant faction Golkar beefed up its security yesterday by placing metal detectors at the entrance of its office on the seventh floor of the People's Consultative Assembly building. Security guards from the Jakarta military command, wearing batik shirts, asked people entering the site, even Golkar members, to pass through the metal detectors and searched their bags.

Exhibition frames Indonesian art through history

Exhibition frames Indonesian art through history By Chandra Johan JAKARTA (JP): It all began in the mid 1950s when the late art critic Kusnadi broached the need for a museum to present the journey of Indonesian art. This employee of the Directorate of Arts of the Ministry of Education and Culture did much to build up the collection of his own office. There are now over 1,500 works, about 350 of which are on display at ministry's Fine Arts Gallery on Jl.

Conversion Rates

Conversion Rates Jakarta (JP): Bank Ekspor Impor Indonesia's (Bank Exim) indicative conversion rates on March 4, 1998: Buying Selling Rp Rp U.S.