Indonesian Political, Business & Finance News

Archive: 10 June 1998

58 articles found

Distressed debt a new asset class in Asia

Distressed debt a new asset class in Asia By Andrea Ricci HONG KONG (Reuters): Asia's decline in fortunes has created a new class of securities previously associated with troubled Latin economies but not robust Asia -- distressed debt. With currencies of many countries sharply weaker, numerous companies have found themselves unable to service their external debt, forcing them to restructure or default.

Right action to take

Right action to take From Neraca Recently all newspapers carried a report that Bank Indonesia (BI) had sustained losses of more than Rp 83 trillion in connection with the take-over of six problem-fraught banks. If this amount were allocated to foster small businesses or make available staple commodities for the ordinary people, just imagine how many needy people would be helped. But that's what BI has done.

Energy firm says Indonesian power contract guaranteed

Energy firm says Indonesian power contract guaranteed MELBOURNE (Dow Jones): Australian energy company, Energy Equity Corp., denied yesterday its power purchase agreement with Indonesia's state-owned power company is under threat. Over the weekend the state power company, Perusahaan Listrick Negara (PLN), unilaterally canceled another company's PPA, raising concerns about EEC's contract.

The death of our airlines

The death of our airlines Five of our regular airlines are reported to be on the brink of being compelled to halt their operations because of soaring operating expenses and falling revenues sparked by the prolonged economic crisis. These five airlines -- Garuda Indonesia, Bouraq, Mandala, Merpati and Dirgantara Air Service -- are at present in severe difficulties because their revenues are unable to balance their operating expenses, which are mostly in foreign exchange, U.S.

Haves, have-nots: Asia's outlook

Haves, have-nots: Asia's outlook SINGAPORE (Reuters): Japan is emerging as the biggest question mark for Asia's economies, most of which are expected to continue to perform poorly over the next six months, according to analysts polled for a Reuters survey. However, the survey shows the region does have some bright spots.

Marina Mahathir marries RI photographer

Marina Mahathir marries RI photographer JAKARTA (JP): Malaysian premier Mahathir Mohamad's eldest daughter Marina Mahathir married Indonesian professional photographer Tara Sosrowardoyo Sunday at Sri Perdana, the prime minister's official residence. The couple first met in 1993 here at the photo exhibition Eyes on ASEAN. Marina, chairwoman of the Malaysian AIDS Council, was in Jakarta to promote her book, Eyes on Asean, a collection of photos exhibited at the event.

Water tariffs to be cut by a quarter

Water tariffs to be cut by a quarter JAKARTA (JP): The city administration, beset by a deluge of complaints over new tap water rates, decided yesterday to lower them by an average of 25 percent starting next month. Governor Sutiyoso said the decision was made after the two foreign business partners of city-owned water management company PDAM Jaya agreed to the new tariff proposals. Tariffs for affluent customers will not be affected.

Scavengers 'eat' Harmoko's home

Scavengers 'eat' Harmoko's home SUKOHARJO, Central Java: A swarm of scavengers broke down the walls of House of Representatives Speaker Harmoko's house in Grogol village, Sukoharjo yesterday, and "devoured" whatever they could. The house was burned and looted on May 14 during a riot here in which dozens of shops and cars were destroyed. "I did this because I was asked to," said Wakijan, one of the scavengers. He refused to say who had instructed him to do so.

Three die in train collision

Three die in train collision TEGAL, Central Java: At least three people died and several houses were burned down by a fire when a train loaded with fuel oil crashed into a steamroller crossing the railroad tracks near Kebasen village, on the outskirts of Tegal, yesterday. The bodies of the three victims, the train's driver and assistant, and the steamroller's operator, have yet to be found, an employee of the state-owned railway company PT Perumka said.

GMBI receives ISO award

GMBI receives ISO award JAKARTA (JP): Automobile manufacturer PT General Motors Buana Indonesia (GMBI), the Indonesian producer of Opel vehicles, announced yesterday it has been awarded an ISO 9002 certification for its production and service quality. Company president Bill Botwick said the certification proves that Opel offers an international quality standard even at a time when the market was sluggish.

PWI, SPS oppose new press rulings

PWI, SPS oppose new press rulings JAKARTA (JP): The Association of Indonesian Journalists (PWI) and the Association of Indonesian Publishers (SPS) have joined forces in calling on the government to annul a newly issued decree allowing it to freeze errant media's publishing licenses for an unspecified period of time.

Malaysia-Myanmar trade

Malaysia-Myanmar trade KUALA LUMPUR (DPA): Malaysia and Myanmar inked a bilateral agreement yesterday to increase bilateral trade, which officials indicate would also take the form of "product exchange" or barter trade on selected products. Myanmar's Commerce Minister Kyaw Than, who is leading a high- level delegation of officials from various state enterprises, said Yangon was eager to increase its exports to its member partners of ASEAN.

Asahan not to boost output

Asahan not to boost output TOKYO (Reuters): Nippon Asahan Aluminium Co Ltd said yesterday that operation rates at its smelter in Indonesia remained reduced as recent rainfall had failed to boost water levels at a lake that supplies power to the plant. "Rain fell on the smelter, but not over the lake. Nothing has changed the severe water situation," an official at Nippon Asahan, which owns 59 percent of PT Indonesia Asahan Aluminium, told Reuters.

Southeast Asia bookies set to cash in

Southeast Asia bookies set to cash in SINGAPORE (Reuters): Illegal bookies in gambling crazed Southeast Asia are poised to make a killing as the World Cup kicks off, offering odds rivaling the best London bookmakers, pundits said yesterday. "Millions will be exchanging hands after each game this World Cup," said one regular punter, who asked not to be identified.

Investigators find proof linking Clinton to Riady

Investigators find proof linking Clinton to Riady WASHINGTON (AP): In the earliest evidence linking United States President Bill Clinton to a foreign donation, investigators have unearthed a 1992 memo indicating James Riady took a coveted private car ride with Clinton just before the Indonesian banker began writing checks that totaled half a million dollars. Riady "will be giving US$100,000 to this event and has the potential to give much more," Clinton was told in a memo dated Aug.

Indonesia's ties with Egypt based on long history

Indonesia's ties with Egypt based on long history By Al Busyra Basnur JAKARTA (JP): The Treaty of Cordiality and Friendship, which was signed by Indonesia and Egypt on June 10 1947, is a very important document in the history of the bilateral relations between the two countries. It had a profound effect on the efficacy of subsequent Indonesian diplomatic endeavors in support of the struggle to defend and preserve Indonesian independence.

Beware of divisive sentiment

Beware of divisive sentiment There should be no place for racial prejudice by citizens of this country against fellow citizens. The preamble of Indonesia's 1945 Constitution clearly states that one of the nation's duties is to protect all the people. This statement is placed ahead of defending the fatherland, or advancing the general welfare and intellectual life of the citizenry, though the latter ideals are no less important.

No need for new political laws, experts say

No need for new political laws, experts say JAKARTA (JP): Most political experts believe Indonesia no longer needs laws to govern political parties as the new electoral law, currently being drafted, should be sufficient. Indria Samego of the Indonesian Institute of Sciences and Afan Gaffar of Gadjah Mada University asserted that despite the emergence of new political parties, there was no need for the government and the House of Representatives to prepare a new law on political parties.

Habibie says he won't contest next election

Habibie says he won't contest next election JAKARTA (Reuters): President B.J. Habibie said here yesterday he was pushing Indonesia's electoral reform programs as fast as possible despite calls by critics for even speedier elections. He also told Reuters Television in an interview he had no plans to continue as head of state after the next presidential poll.

DNA test shows Sumatran tiger a separate species

DNA test shows Sumatran tiger a separate species WASHINGTON (Reuters): DNA evidence shows that Sumatran tigers are a separate species from other tigers, which means extra efforts are needed to save them, scientists said on Monday. They said that while all tigers are under threat of extinction, Sumatran tigers may be a special case because there are so few of them in zoos.

Prosecutors ignore defense request in Trisakti hearing

Prosecutors ignore defense request in Trisakti hearing JAKARTA (JP): The second session of the court-martial of two police officers involved in the Trisakti shooting incident ended in tension yesterday after prosecutors ignored a defense request to respond to the prosecutor's statement. The hearing began at 9 a.m.

TV today

TV today TVRI 2:00 p.m. News: Berita 14 2:30 Music 2:35 Children's Film 3:05 Family's Film 4:00 Regional News 4:30 Teen Program: Remaja Indonesia 5:00 Science and Technology Program 5:30 Education Quiz: Cepat Tepat 6:05 My Country: Rona Nusantara 6:15 Sports 6:30 TVRI News (in English) 7:00 Evening News 7:35 TV Drama: Ganti Nama 8:05 Economic News: Lintas Ekonomi 8:30 News: Laporan Peristiwa 9:00 World News 9:30 World Cup Opening Ceremony (live) 10:30 World Cup Soccer: Brazil vs Scotland (live)...

Indonesian women in politics

Indonesian women in politics By Johannes Nugroho SURABAYA (JP): The inception of the Indonesian Women's Party (PPI) by novelist La Rose recently brought forth the issue of women's role in the governance of this country. La Rose sardonically remarked that existing women's organizations had not empowered women except in making them adept at arranging dried flowers. In the supposed era of equal opportunity between the two sexes, are gender politics still a pertinent issue?

The Chinese become the silent minority

The Chinese become the silent minority By Sri Lestari JAKARTA (JP): Not long after the first riots broke out in Jakarta less than a month ago, hundreds, or even thousands, of people hastily grabbed their belongings and fled the city in fear of their lives. Some even left the country. Most of them were Indonesians of Chinese descent -- the main targets of the rioters.

Weakening yen continues to overshadow markets

Weakening yen continues to overshadow markets SINGAPORE (Reuters): Japan's sliding currency made Asian markets suffer again on Tuesday as worries about the weak yen's impact on regional stability and competitiveness overshadowed trade. The yen dipped below 141 to the dollar in early Asian business and, despite rebounding to 140.30 by late afternoon on fears of official intervention, traders worried about further falls and the lack of concrete action by Japanese policymakers to stop the rot.

Yen's fall a bane and boon for Japan, curse for Asia

Yen's fall a bane and boon for Japan, curse for Asia By Linda Sieg TOKYO (Reuters): Japanese policy-makers confronting an ever weaker yen could be forgiven a bit of ambivalence, given conflicting views on how much a falling currency helps or hinders the beleaguered economy. But when it comes to the rest of Asia, most pundits agree: an ever-weaker yen makes regional woes worse and at some level risks sparking competitive currency devaluations.

Trend toward more democracy continues in Asia

Trend toward more democracy continues in Asia By Olaf Jahn HONG KONG (DPA): The collapse of the Soeharto regime in Indonesia was only the latest chapter in a pro-democratic domino effect that has been transforming Asia for a dozen years. The People's Power movement which swept Philippine dictator Ferdinand Marcos out of power in 1986, and mass demonstrations the same year in Taiwan which forced the first steps toward democracy there may have seemed isolated developments at the time.

Indonesia, Singapore Navies launch joint civic work mission

Indonesia, Singapore Navies launch joint civic work mission PALEMBANG, South Sumatra (JP): The Navy will continue to place a strong emphasis in its civic work missions to help alleviate poverty in the country's least developed areas. "The Navy sees the Baskara Jaya civic work mission as a must. Now the social mission becomes urgent due to the economic crisis that has plagued the country in the last 11 months," Navy Chief Adm.

Minister admits anomaly in sales of fertilizer

Minister admits anomaly in sales of fertilizer JAKARTA (JP): The Ministry of Agriculture admitted yesterday that malfeasance occurred in the distribution of subsidized fertilizers earmarked for farmers. Mohammad Jafar Hafsah, the secretary of the Mass Guidance Engineering Unit (Bimas) of the ministry, said much of the subsidized fertilizer ended up instead with plantation companies. He said the probe was still underway into the amount of government losses caused by the irregularities.

AG and BPKP to audit all Pertamina contracts

AG and BPKP to audit all Pertamina contracts JAKARTA (JP): The Attorney General's Office and the Development Finance Comptroller (BPKP) will conduct legal and financial audits of contracts between the state oil and gas company Pertamina and companies linked to former president Soeharto's family and cronies.

Blaming the victim

Blaming the victim In his letter of June 30, Mr. Sumarsono finds fault with the fact that many Chinese-Indonesians chose to flee the country during the riots which engulfed Indonesia several weeks ago. He also cites their siege mentality, feeling of victimization and lack of commitment as reasons why they will continue to be victimized. Mr.

Seven top businessmen named as special business envoys

Seven top businessmen named as special business envoys JAKARTA (JP): President B.J. Habibie will appoint seven of the country's top businessmen as special envoys with ambassadorial rank to help promote the Indonesian economy abroad and improve foreign investor confidence. Chairman of the Indonesian Chambers of Commerce and Industry (Kadin) Aburizal Bakrie told reporters after meeting with the President yesterday that the new envoys would be James Riady, Hashim S. Djojohadikusumo, A.A.

Karimun shipyard on hold

Karimun shipyard on hold SINGAPORE (Reuters): Jurong Shipyard Ltd has put on hold expansion plans at its Karimun shipyard in Indonesia due to uncertainties in the crisis-stricken country, chairman Lua Cheng Eng said yesterday. "We are on hold. We just can't do anything now. Our plans remain unchanged, but we are now watching developments in Indonesia," Lua told Reuters in an interview. "We are not in a hurry to implement the plans that we have.

Irianese protest over planned eviction

Irianese protest over planned eviction JAKARTA (JP): About 100 Irianese staged a peaceful demonstration at City Hall yesterday to protest a statement by Governor Sutiyoso that he would expel them from their Tanah Abang dormitory in Central Jakarta because of their repeated clashes with neighboring Betawi (native Jakartans). One of the protesters, Ones Dom, criticized Sutiyoso's remarks which he said labeled Irianese living at the dormitory as hoodlums who had to be driven away.

BI support for ailing banks up to Rp 132t

BI support for ailing banks up to Rp 132t JAKARTA (JP): Bank Indonesia (BI) reported yesterday that its net claims on the Indonesian Bank Restructuring Agency (IBRA) jumped to Rp 132.12 trillion (US$11.49 billion) on June 5 from Rp 124.63 trillion the previous week. The increase was mainly caused by the increase in liquidity injections to troubled banks being supervised by IBRA, BI said in a statement. BI said liquidity credits rose to Rp 19.3 trillion from Rp 19.14 trillion.

Friend hunted in Yemeni murder

Friend hunted in Yemeni murder JAKARTA (JP): Police are hunting a friend of a Yemeni man murdered in Hotel Pitagiri in Palmerah, West Jakarta, on Monday morning. "Officers of the Palmerah police subprecinct are looking for the victim's local friend, identified as Rusdi, 25, as some clues have emerged in the case," city police spokesman Lt. Col Edward Aritonang said. He refused to give further details. "It's all being investigated.

Govt urged to restore late Dharsono's name

Govt urged to restore late Dharsono's name JAKARTA (JP): A group of senior government critics is urging President B.J. Habibie's government to restore the good name of the late Hartono Rekso Dharsono, a soldier and diplomat whom former president Soeharto's regime jailed for subversion. Members of Petisi 50, speaking to the media yesterday during a gathering at the Central Jakarta residence of its leader, Lt. Gen.

Indonesia to ratify human rights pacts

Indonesia to ratify human rights pacts JAKARTA (JP): Indonesia will begin a five-year National Action Plan on Human Rights later this month in an attempt to better its much maligned international image on rights issues. President B.J. Habibie will officially launch the program, to include ratification of several United Nations' conventions, on June 25 to coincide with the 1993 Vienna Action Plan Declaration.

BI to handle credit supply to small firms

BI to handle credit supply to small firms JAKARTA (JP): Bank Indonesia will take over the overall supply of subsidized credit to small and medium-scale businesses because the country's commercial banks can no longer make any contribution, a top official of the central bank said. BI director Miranda Gultom said yesterday that the central bank would boost its contribution of total supply of subsidized credit to 100 percent from 65 percent last year.

Rupiah remains weak but stock prices up slightly

Rupiah remains weak but stock prices up slightly JAKARTA (JP): The rupiah remained weak yesterday due to political uncertainty but share prices rose slightly in thin trading on the wake of late buying support. Currency dealers said the rupiah received no respite from last week's debt accord or the likelihood of the release of the International Monetary Fund (IMF)-brokered bailout package late this week.

164,000 workers quit PT Jamsostek

164,000 workers quit PT Jamsostek KUDUS, Central Java: More than 164,000 employees of cigarette factories in the city yesterday announced they were withdrawing from the state social security program PT Jamsostek. Mohammad As'ad, the chairman of the trade union in the tobacco, cigarette, food and beverage sector, said here yesterday that the workers would withdraw all the money appropriated from their salaries for the insurance program and would establish their own social security program.

Our national unity

Our national unity It has been almost a month since the riots that rocked Jakarta between May 13 and May 15. The wounds from the violence, arson and looting of those days are, however, still far from healed. With a countless number of shops and businesses destroyed and their owners having fled to other countries or safe havens here in Indonesia, our daily commerce has yet to fully return to normal.

Team set up to probe officials' wealth

Team set up to probe officials' wealth JAKARTA (JP): The Attorney General's Office has formed a team, headed by Deputy Attorney General for Civil and State Administrative Courts Soehanjono, to investigate the wealth of current and past government officials. "The results (of the investigation) of officials from both the central and provincial governments will be announced to the public," the office's spokesman, Barman Zahir, said yesterday.

Conversion Rates

Conversion Rates Jakarta (JP): Bank Ekspor Impor Indonesia's (Bank Exim) indicative conversion rates on June 9, 1998: Buying Selling Rp Rp U.S.

Ramos links IMF to Asian dilemma

Ramos links IMF to Asian dilemma MANILA (Reuters): The International Monetary Fund's rescue plan for Indonesia and Thailand may have worsened the two countries' economic problems, Philippine President Fidel Ramos said. Ramos made the statement in an article he wrote for the June 12 issue of Asiaweek news magazine, excerpts of which were released by the presidential palace yesterday.

World Cup likely to bring lull in political tension

World Cup likely to bring lull in political tension JAKARTA (JP): Not only does the World Cup, which kicks off today, promise hectic competition, but a respite to the country's looming political and economic tension. Minister of Defense and Security/Armed Forces Chief Gen. Wiranto was quick yesterday to use the momentum of the sporting fiesta to call on a lay-off to any movement that could lead to mass deployment.

Habibie no economic savior, says sennior economist

Habibie no economic savior, says sennior economist MELBOURNE (Reuters): A senior Indonesian economist said yesterday he doubted the nation's battered economy could recover with new President B.J. Habibie at the helm. Hadi Soesastro, of the Jakarta-based Centre for Strategic and International Studies, said Habibie lacked the political and moral authority to be more than a caretaker leader.

Airport cab drivers protest collusion

Airport cab drivers protest collusion TANGERANG (JP): Hundreds of taxi drivers licensed to operate out of Soekarno-Hatta International Airport protested about the operation of unofficial taxies at the airport and the corrupt security officials who assist them yesterday. The drivers, who came from various taxi companies, parked their cabs in the terminal one and two parking lot.

Telkom's partners face trouble meeting targets

Telkom's partners face trouble meeting targets JAKARTA (JP): Partners of state-owned telecommunications firm PT Telekomunikasi Indonesia (Telkom) admitted yesterday the crisis was making it difficult for them to meet targets for telephone line installation. Eddy Hadijanto, a spokesman of the five firms which participate in the joint-operation schemes to build telecommunication networks across the country, said the partners had problems securing loans to continue their projects.

19 killed in shop fire

19 killed in shop fire PALEMBANG, South Sumatra: Nineteen people died and dozens others were hospitalized when they were trapped in a fire that razed a shopping center and theater building in the South Sumatran capital Monday evening. The injured victims are still in intensive care at AK Gani General Hospital in the city. Two bodies, identified as Abdurachim and Rozali, were found on Monday. They were asphyxiated after becoming trapped in the gutted theater building.

Probo defends Soeharto's integrity

Probo defends Soeharto's integrity JAKARTA (JP): Soeharto's half-brother Probosutedjo deplored yesterday baseless allegations over the former president's wealth, claiming Soeharto never used his power to enrich himself or his children. The four foundations that Soeharto established were created only to help needy people and they used legal and open ways to collect donations from the public, he said. "The criticism is not objective. It targets only the (former leader's) family.

Oil traders make beeline to Pertamina offices

Oil traders make beeline to Pertamina offices SINGAPORE (Reuters): Oil traders are making a beeline to the offices of the just liberalized Indonesian state oil monopoly Pertamina, jostling for lucrative multi-million dollar supply contracts, industry sources said yesterday. "Everybody is flying in there to shake hands," said one trader who had just returned from his round of making new friends at Pertamina. "We are just going in there to say I don't know anything that happened.

IMF promises fast action on Indonesia loan

IMF promises fast action on Indonesia loan WASHINGTON (Reuters): The International Monetary Fund said it could resume lending to Indonesia by early July or sooner, and promised subsidies would remain in place to help the poor cope with rising prices. IMF First Deputy Managing Director Stanley Fischer told reporters in Washington Monday that release of the fund's next loan payment to Jakarta would depend on the outcome of an IMF review of the battered economy. But he added: "They need help.

Police 'must be separated from ABRI'

Police 'must be separated from ABRI' JAKARTA (JP): The National Commission on Human Rights recommended yesterday that the police be separated from the Armed Forces so it could be independent and be in a better position to serve and protect the public. The rights body told the House of Representatives' Commission I for defense and security, foreign affairs, information and legal affairs, that the police should no longer be the "political tool" of the government and the Armed Forces (ABRI).

Stock Exchange

Stock Exchange Stock prices on the Jakarta Stock Exchange (in rupiah) on June 9, 1998: Shares Close Change Trading Volume -------------------------------------------------------------- Ades Alfindo 450 -50 3,000 AHAP Insurance 575 25 500 Alter Abadi 525 -25 1,124,500 Alumindo Light Metal 300 0 507,000 Alumindo Perkasa 200 0 16,000 Aneka Kimia Raya 300 -25 104,500 Aneka Tambang 1,475 75 5,940,000 Anwar Sierad 125 0 6,500 Apac Centertex Corp.

Trauma and horror remains for women raped by rioters

Trauma and horror remains for women raped by rioters JAKARTA (JP): The debris around many of the buildings damaged during last month's riots has been cleaned up and business is slowly restarting. But for most of the women raped between May 13 and May 15 just facing up to the fact that they are still alive is an almost unbearable burden. "For the victims, death would have been better than anything else," Ita F.

Former U.S. envoy to RI dies at 82

Former U.S. envoy to RI dies at 82 WASHINGTON (AP): Marshall Green, a former U.S. ambassador to Indonesia and Australia who also served as an assistant secretary of state, is dead at age 82. A Washington resident, Green was playing golf with his son when he suffered a heart attack. He died at Suburban Hospital in nearby Bethesda, Maryland, on June 6.

Garbage dump sparks protest

Garbage dump sparks protest BOGOR (JP): A group of Rancamaya village residents here staged a protest Monday to vent their opposition against the existence of a garbage dump 200 meters away from their residential area. Usep, the protesters' spokesman, said the residents wanted the mayoralty to close down the garbage dump because it spoiled their environment. "You can see here. Trash and flies are scattered everywhere," he said.