Indonesian Political, Business & Finance News

Archive: 27 June 1998

60 articles found

Immigration responds

Immigration responds I refer to Donna K. Woodward's letter of June 6, 1998, written in response to a letter by the public relations head of the Directorate General of Immigration (M.A. Gani) dated June 3, 1998. 1. In accordance with the prevailing provisions in Indonesian laws, each complaint must be accompanied by authentic proof. If there is no proof in support of the complaint, it is considered as defamation. 2. The response given by M.A.

BUN, Bank Tiara need huge cash inputs to meet CAR

BUN, Bank Tiara need huge cash inputs to meet CAR JAKARTA (JP): Cash-strapped Bank Umum Nasional (BUN) and Bank Tiara need Rp 10.46 trillion (US$747 million) and Rp 2.88 trillion respectively in fresh funds to meet the minimum capital adequacy ratio (CAR) of 4 percent this year, according to the Indonesian Bank Restructuring Agency (IBRA).

Great River to export most of its products

Great River to export most of its products JAKARTA (JP): Publicly listed garment producer PT Great River International will export most of its products this year because domestic demand continues to decline, a company executive said yesterday. The company's president and chief executive officer, Sunjoto Tanudjaja, said about 70 percent of this year's total production would be sold overseas.

Golkar's future still bright, says Rudini

Golkar's future still bright, says Rudini JAKARTA (JP): The future of the ruling political organization Golkar is bright if it can prove its effectiveness as a true representation of the people's aspirations, said political observer Rudini yesterday. Speaking in a discussion with Jakarta-based political correspondents, he said Golkar should not be rigid in responding to voices for reform.

A compromise on East Timor?

A compromise on East Timor? Indonesian President B.J. Habibie's offer on East Timor is a dramatic leap for Jakarta to take but one that falls short of meeting the demands of the East Timorese themselves. Habibie says he is prepared to release the resistance leader Xanana Gusmao from prison immediately, to order a troop withdrawal from East Timor and to grant wide powers of autonomy to the territory. The price: international recognition of Indonesia's 1976 annexation of East Timor.

Changes in the military

Changes in the military Changes in the Armed Forces (ABRI) command are always described as normal. This is especially true when the officer who is replaced has been in his position for quite some time. Dibyo Widodo, for example, has been chief of the Indonesian National Police since March 15, 1996. Sjafrie Sjamsoeddin, who replaced Maj. Gen. Sutiyoso as Jakarta's military commander, has been in this post for a relatively short time: eight months.

Traders demand security assurance

Traders demand security assurance JAKARTA (JP): Dozens of market trader representatives urged the government yesterday to guarantee security in Tanah Abang market in Central Jakarta to enable traders to do business safely. The representatives expressed their demands at the National Commission on Human Rights yesterday. "We want the government to give us protection," said Syamsul Jakaria, spokesman of the delegation.

Street rallies, strikes are staples of year so far

Street rallies, strikes are staples of year so far JAKARTA (JP): The greater Jakarta area has seen at least 124 street demonstrations and some 100 worker strikes up to the first week of June this year, according to the police. The protests, involving hundreds of thousands of people from different walks of life, were mainly focused on demands for political and economic reforms, City Police spokesman Lt. Col. E. Aritonang told The Jakarta Post Thursday.

City cuts funds to branches of political parties

City cuts funds to branches of political parties JAKARTA (JP): The branch offices of Golkar and two other political parties -- the United Development Party (PPP) and Indonesian Democratic Party (PDI) -- have agreed to the cancelation of their grants from the city administration budget this year. All three have agreed to let the administration temporarily freeze its annual assistance, which is usually used to finance the organizations' activities, for the sake of efficiency.

Arms exports breach foreign policy

Arms exports breach foreign policy By Richard Norton-Taylor LONDON: The British Government has approved more than 2,000 licenses for arms exports to some of the world's most volatile trouble-spots, in apparent breach of its ethical foreign policy guidelines, according to a report published Wednesday.

Coffee traders turn from Vietnam to RI, Brazil

Coffee traders turn from Vietnam to RI, Brazil HANOI (Reuters): Vietnam's coffee trade came to a near standstill this week as buyers turned to Indonesia and Brazil, traders said yesterday. "Vietnam's prices are not as attractive as Indonesia," said a dealer from Ho Chi Minh City. "Buyers are shifting to Indonesia and Brazil for better deals." Indonesia is now Asia's main coffee supplier as Vietnamese coffee stocks have dwindled.

Case on Hindoro stays open despite his recent death

Case on Hindoro stays open despite his recent death JAKARTA (JP): City police detectives are set to continue investigating a Rp 900 billion bank scam despite the recent death of the main suspect Hindoro Halim, an official said yesterday. City Police spokesman Lt. Col. E. Aritonang told the media that detectives were currently preparing dossiers of Hindoro's alleged involvement in illegal commercial paper transactions in an effort to net other suspects.

Unprofessional decision

Unprofessional decision The recent statement by the state minister of environment on the plan to close PT Inti Indorayon Utama, a pulp and paper company in North Sumatra, is considered a bias and unprofessional decision. The House of Representatives agreed to the plan to close the Medan-based factory, decreed by State Minister of Environment Panangian Siregar in a House hearing on June 15, 1998. One cannot say that pulp and paper companies have succeeded in being kind to the environment.

Marshall Green knew the art of diplomacy

Marshall Green knew the art of diplomacy By Jusuf Wanandi United States Ambassador Marshall Green who was posted in Indonesia during the turbulent years of the 1960s died of a heart attack on June 6 in Washington. He was 82 years old. Green also served as assistant secretary of state for East Asia and Pacific affairs from 1969 to 1972. JAKARTA (JP): Ambassador Marshall Green is one of my heroes in the art of diplomacy and in the practice of international relations.

Minister welcomes plan to audit reforestation funds

Minister welcomes plan to audit reforestation funds JAKARTA (JP): Minister of Forestry and Plantations Muslimin Nasution hailed yesterday the government's decision to appoint a public accounting firm to audit reforestation funds collected from timber companies. The minister said the involvement of public accountants in auditing the reforestation funds would make his ministry's job easier in finding any deviation of funds.

Thousands march in East Timor

Thousands march in East Timor DILI, East Timor: Thousands of East Timorese supporting integration marched to the governor's office here yesterday to express their opposition to any referendum in the province and to call for more autonomy. Calling themselves the Front for Pro-Autonomy and Integration Defenders, they presented a statement to the governor welcoming reforms in the province which they believed was the first step to improve welfare and prosperity.

Braga makeover launched at bazaar

Braga makeover launched at bazaar BANDUNG: The famous classic European-styles once found on Jl. Braga, an exclusive shopping area in the heart of Bandung, will reappear tomorrow in a one-day bazaar expected to help boost the area's ailing economy. The bazaar, Braga Kaget, will be held to celebrate Braga's return to its original European look, a move designed to help revive Bandung's status as one of the nation's favorite tourist destinations. Jl.

Riots' victims

Riots' victims The May riots have left many victims, including rape victims. Although thorough investigation into the riots is being conducted by the authorities, several organizations and institutions have started working to help these victims. But to my surprise, this help and effort is not coming from the government. It is non-governmental humanitarian institutions and women's organizations that have been making some efforts to address the issue.

Support rolls in for decision to let pedicabs return

Support rolls in for decision to let pedicabs return JAKARTA (JP): The Indonesian Consumers Foundation (YLKI) welcomed yesterday Governor Sutiyoso's decision to allow becak (pedicabs) to operate again within the city. One of the foundation's executives, Zumrotin K. Susilo, said the decision to allow pedicabs to operate is in line with people's aspirations. "The decision shows the fact," Zumrotin said in a statement.

Publisher gets permit at last

Publisher gets permit at last JAKARTA (JP): Thirteen years ago, Idrus Indas applied to the Ministry of Information to turn his Nusantara Pos weekly in Kendari, Southeast Sulawesi, into a daily newspaper. On Thursday, the license for a daily newspaper unexpectedly arrived in his office in Kendari. Idrus told Antara he had long given up on the idea after stumbling into a tangle of bureaucratic red tape.

Conversion Rates

Conversion Rates JAKARTA (JP): Bank Ekspor Impor Indonesia's (Bank Exim) indicative conversion rates on June 26, 1998: Buying Selling Rp Rp U.S.

'TVRI': A television station in waiting

'TVRI': A television station in waiting By Antariksawan Jusuf JAKARTA (JP): It is a classic dilemma: how can the state television station TVRI survive its role as a broadcaster serving the people and, at the same time, be financially independent? Minister of Information Muhammad Yunus, formerly known as Yunus Yosfiah, has mooted an idea of allowing the station to air commercials, saying the station should be run professionally. But will it work?

Tight selection for RI squads for Asiad

Tight selection for RI squads for Asiad JAKARTA (JP): Only athletes from five or six sports deserve to go to the 13th Asian Games in Bangkok in December, Minister of Sports and Youth Affairs Agung Laksono said yesterday. On a visit to the national badminton training center in Cipayung, East Jakarta, Agung said the lack of international achievements coupled with lack of funds should prod several sports organizations to reconsider their efforts to send their athletes.

News on heart disease available on Internet

News on heart disease available on Internet JAKARTA (JP): A new heart and stroke foundation was set up yesterday with the mission to spread information on the diseases. "Unlike other foundations, we are more concerned with public information services," Lily I Rilantono, chairwoman of Yayasan Peduli Jantung dan Stroke, or Foundation for the Awareness of Heart and Stroke Diseases, said yesterday.

Jakarta 'unhappy' with its ties with Singapore

Jakarta 'unhappy' with its ties with Singapore SINGAPORE (Reuters): An Indonesian minister has been quoted as saying the new government in Jakarta is unhappy with the state of its relations with Singapore. "Ties are not moving in the right direction," State Minister for the Empowerment of State Enterprises Tanri Abeng was quoted by Singapore's Business Times newspaper yesterday as saying in an interview.

Governor Sutiyoso agrees to mediate for Tommy in row

Governor Sutiyoso agrees to mediate for Tommy in row JAKARTA (JP): Governor Sutiyoso agreed yesterday to help Hutomo Mandala Putra sell two disputed buildings to state enterprises. Speaking to reporters after a meeting with the youngest son of former president Soeharto, the governor said he would contact State Minister for the Empowerment of State Enterprises Tanri Abeng to discuss the matter.

New House may see reduced ABRI presence

New House may see reduced ABRI presence JAKARTA (JP): A seven-member team assigned to draft new political laws has outlined a proposal which would eliminate the Armed Forces' (ABRI) representation in provincial legislatures while also reducing the number of its allocated seats in the House of Representatives (DPR).

U.S., World Bank hail Indonesia-IMF accord

U.S., World Bank hail Indonesia-IMF accord JAKARTA (JP): The World Bank and the United States have welcomed a new agreement between Indonesia and the International Monetary Fund on a revised economic program designed to stabilize the country's embattled economy. U.S.

Neglected buildings in Surakarta

Neglected buildings in Surakarta From Merdeka The city of Surakarta in Central Java has thousands of ancient buildings which are both artistic and historical. Unfortunately, many of them are in a highly neglected state. The city does not seem to care for its historical buildings. It has modified many of the ancient buildings into shopping centers, offices, plazas and recreational places. The remaining buildings are in disrepair and without any visible effort at improvement and conservation.

Tommy refuses calls to resign from Assembly

Tommy refuses calls to resign from Assembly JAKARTA (JP): Hutomo Mandala Putra, former president Soeharto's youngest son, refused yesterday to meet calls for him to resign from the People's Consultative Assembly (MPR). Resigning without being asked to by one's electorate would be an irresponsible action, the 36-year-old businessman, who is better known as Tommy, told reporters after meeting Jakarta Governor Sutiyoso at City Hall yesterday. "Why should I resign? What's the reason?," Tommy asked.

Market cheerless over IMF, ADB deals

Market cheerless over IMF, ADB deals JAKARTA (JP): Indonesia's financial market is unimpressed by a new deal between Indonesia and the International Monetary Fund (IMF) and a new loan agreement with the Asian Development Bank (ADB).

PAL pilots made to reapply for jobs

PAL pilots made to reapply for jobs MANILA (Reuters): Striking pilots of Philippine Airlines Inc. (PAL) said yesterday they were returning to work but the airline told them they would have to reapply for a job as new employees. "All striking officers and members of ALPAP are returning to work effective at 11 a.m (10 a.m. Jakarta time) of this day, 26 June, 1998," Airline Pilots Association of the Philippines president Sotico Lloren said in a letter to PAL.

Habibie visits Malang markets

Habibie visits Malang markets MALANG, East Java (JP): Hundreds of shoppers at Singosari and Besar market in this small East Java town were taken aback when they saw their president suddenly among them yesterday. B.J. Habibie made an impromptu day visit to the two markets, staying in this small town for about five hours before returning on a special plane with his entourage to Jakarta.

Rubber ends little changed

Rubber ends little changed KUALA LUMPUR (Reuters): The Malaysian rubber market ended the week little changed as consumers refused to deal in the wake of uncertainty in currency movements and poor demand, dealers said. By the close, the Malaysian Rubber Board said July Int. Ones RSS buyer eased half a cent to 274.50 cents (68 U.S. cents) a kg and July SMR 20 buyer was down a cent at 249.50. "Dealing was extremely dull.

Regional currencies continue to track yen

Regional currencies continue to track yen SINGAPORE (Dow Jones): Southeast Asian currencies fell during Asian trading hours yesterday to finish the week down across the board against the U.S. dollar. For the fourth week running regional currencies faithfully tracked the yen. Throughout the week Southeast Asia's currencies were edged lower as market participants sought every opportunity to buy the U.S. dollar. Traders and analysts alike are convinced the U.S.

Hudson sells RI investments

Hudson sells RI investments SYDNEY (Dow Jones): Hudson Conway Ltd., an Australian investment concern and property developer, said yesterday it has sold investments that it holds in Indonesian companies, incurring an after-tax loss of A$12.8 million on the transaction. The decision to sell the shares was made in view of the recent depreciation of Indonesia's currency, the rupiah, and the adverse impact it has had on the country's economy, Hudson Conway said in a statement.

Should minority groups form parties?

Should minority groups form parties? By Aleksius Jemadu BANDUNG (JP): Like it or not, a political distinction between the majority and minority groups in Indonesian politics remains an undeniable fact. Those who are in the majority group have a natural tendency to aspire to a bigger role in the political system. The minority groups, on the other hand, tend to demand factual recognition as an integral part of the nation.

Hotel gives scholarships

Hotel gives scholarships JAKARTA (JP): To commemorate their first anniversary, Quality Hotel Aspac yesterday handed out 37 scholarships to high- achieving but needy students from schools in the Benda district, Tangerang, surrounding the Sukarno-Hatta International Airport. The scholarships were given to 35 students from 10 elementary schools in the area and two students from Pandawa Budiluhur tourism school.

The governor's new clothes

The governor's new clothes What could Rp 105 million -- the equivalent of about US$7,500 -- buy in this time of crisis in Jakarta? Some 35,000 kilograms of rice, perhaps, or more than 17,000 kgs of cooking oil, or 4,200 one-liter cans of milk, or 43,750 kgs of sugar. Even at the current inflated prices, Rp 105 million could do a lot to relieve the hardships of those who are suffering the most in the ongoing economic crisis.

AJI establishes Yogya branch

AJI establishes Yogya branch YOGYAKARTA: The Alliance of Independent Journalists (AJI), previously banned during the Soeharto era, established a branch here this week. In a modest ceremony attended by local journalists, R. Fadjri was installed as chairman of the new branch on Wednesday.

Humpuss unfazed by Pertamina moves

Humpuss unfazed by Pertamina moves JAKARTA (JP): Publicly listed shipping and port company PT Humpuss Intermoda Transportasi, which is controlled by members of former president Soeharto's family, said yesterday it was ready to face any move by state oil and gas firm Pertamina to retender its shipping contracts. Company finance and marketing director/corporate secretary A.

Parents told to be wary of drug abuse threat

Parents told to be wary of drug abuse threat JAKARTA (JP): President B.J. Habibie warned Indonesian parents yesterday to step up their vigilance over the rising danger of drug abuse by the young generation. The President said parents were the ones most responsible for their children, though teachers and society also play an important role in their education and maturation process. According to official statistics only 0.065 percent of the total population, or 130,000 people, are drug addicts.

Health centers to reduce fees

Health centers to reduce fees PURWOKERTO, Central Java: Thirty community health centers here have decided to reduce their consultation fees to previous rates, after being deserted by patients following a 600 percent fee hike in January. Head of the Banyumas regency health office, Mambodiyanto, told The Jakarta Post that the decision was taken because health centers here had found that the higher fees discouraged people from visiting the centers.

Pertamina buys oil with international L/C

Pertamina buys oil with international L/C TOKYO (Reuters): Indonesian state-owned oil firm Pertamina has made one of its first imports of crude oil supported by a letter of credit (L/C) from an international bank, oil trade sources said yesterday. The break through comes after several deals fell through because crude and oil product sellers were not willing to accept L/Cs from domestic Indonesian banks.

Patience fading for military probe: Kontras

Patience fading for military probe: Kontras JAKARTA (JP): Public patience is fast disappearing for the results of the Armed Forces' investigation into the kidnappings of scores of activists, an independent advocacy group said yesterday. The Commission for Missing Persons and Victims of Violence (Kontras) called on the government to speed up the investigation and announce the findings.

Zhao appeals for reversal of verdict on massacre

Zhao appeals for reversal of verdict on massacre Our Asia correspondent Harvey Stockwin in the second article of his series on Clinton's current visit to China reports on a noteworthy development in Chinese politics, as former prime minister and party leader Zhao Ziyang urges a change of heart in regard to the Beijing Massacre in June 1989.

USDA sets credits for SE Asia

USDA sets credits for SE Asia WASHINGTON (Reuters): The U.S. Agriculture said Thursday that it has authorized US$90 million in export credit guarantees for sales of U.S. farm goods to the Southeast Asian region through the end of fiscal 1999.

Asia's problem a thorn in American global power

Asia's problem a thorn in American global power By John Gray LONDON: Asia's gathering depression is opening up widening cracks in American global power. Wall Street views Asia's crisis as the fire sale of the century -- a once-in-a-lifetime opportunity to buy up sizable chunks of its economies. It expects the crisis to end with the spread of the free market throughout Asia and a continuation of America's spectacular boom. In reality, the U.S.

Indonesia's rice production seen declining 6.25% this year

Indonesia's rice production seen declining 6.25% this year JAKARTA (JP): Indonesia's unhusked rice output is expected to drop 6.25 percent to 46.29 million metric tons this year, down from 49.38 million tons in 1996, due to the planting season being delayed by the drought, the Central Bureau of Statistics announced yesterday. The government earlier estimated this year's rice production would drop by 3.80 percent.

Where to go in Jakarta:

Where to go in Jakarta: Exhibitions * Indian Photo Exhibition, in the National Museum, Jl. Medan Merdeka Barat 12, Central Jakarta (Phone: 3811551), Sunday, Tuesday to Thursday, 8:30 a.m. to 2:30 p.m., Friday, 8:30 a.m. to 11:30 a.m., Saturday, 8:30 a.m. to 1:30 p.m., until July 1. * Arts Exhibition: ASEANA, a showcase of ASEAN Cultures, featuring books, video and audio tapes, paintings, photographs, handicrafts, at ASEAN Secretariat, Jl.

Stock Exchange

Stock Exchange Stock prices on the Jakarta Stock Exchange (in rupiah) on June 26, 1998: Shares Close Change Trading Volume ------------------------------------------------------------- Ades Alfindo 450 0 0 AHAP Insurance 575 0 0 Alter Abadi 500 0 120,000 Alumindo Light Metal 275 -25 75,000 Alumindo Perkasa 200 0 26,000 Aneka Kimia Raya 150 -25 50,000 Aneka Tambang 1,500 25 4,284,500 Anwar Sierad 100 0 4,000 Apac Centertex Corp.

OPEC basket price falls

OPEC basket price falls LONDON (Reuters): The price of OPEC's basket of seven crudes fell to $11.50 a barrel on Thursday from $11.93 the previous day, the OPEC news agency said quoting the OPEC Secretariat. The basket comprises Algeria's Saharan Blend, Indonesia's Minas, Nigeria's Bonny Light, Saudi Arabia's Arabian Light, Dubai of the UAE, Venezuela's Tia Juana and Mexico's Isthmus.

ADB gives RI $1.5b loan to meet budget deficit

ADB gives RI $1.5b loan to meet budget deficit JAKARTA (JP): The government and the Asian Development Bank (ADB) signed a US$1.5 billion loan agreement yesterday to finance Indonesia's budget deficit and strengthen its balance of payments. ADB Vice President Peter Sullivan said the loan would be disbursed in three tranches during the 1998/1999 fiscal year.

Feeling of empathy

Feeling of empathy The letter of my Moslem brother Syahyurli AB of June 12, is more than touching. It's rather a very consoling and healing one for those going through unbearable sufferings due to the tragedy of May 13 and May 14. You have indeed a very beautiful feeling of empathy toward those victimized. It is really time now for each of us to make introspection. What happened was due to our own faults.

BSD resident robbed of Rp 41m

BSD resident robbed of Rp 41m TANGERANG (JP): A group of 12 armed criminals allegedly robbed a resident of the Bumi Serpong Damai (BSD) housing complex of gold, belongings and cash valued at Rp 41 million (US$2,733) yesterday. Head of Tangerang police precinct Lt. Col. Aryanto Boedihardjo told reporters the robbers broke into Dento Prakoso's house on Jl. Herbras Blok I/11 by breaking down the back door at about 5 a.m.

Man dies after losing bet

Man dies after losing bet HANOI (AP): A 24-year-old man committed suicide after losing a bet on the Germany-Yugoslavia World Cup soccer match, local police said yesterday. Bui Van Dang was found dead Monday after hanging himself at the office of the people's committee of Quyet Thang precinct in the central highlands province of Kon Tum, police said. Police said he had lost his Honda Dream motorcycle on the Sunday match between Germany and Yugoslavia, which ended in a 2-2 draw.

Party promises not to mobilize masses

Party promises not to mobilize masses JAKARTA (JP): The newly established Indonesian Workers Party (PPI) promised yesterday that it would not mobilize the masses to achieve its political objectives. PPI, formed by activists of the All-Indonesia Workers Union Federation (FSPSI), joined the growing chorus calling for a convening of the People's Consultative Assembly (MPR) to establish a transitional government.

Moslem scholar launches new political party

Moslem scholar launches new political party JAKARTA (JP): Moslem scholar Deliar Noer, known for his staunch criticism of the government, launched Partai Ummat Islam (Islamic Community Party) yesterday, adding to the country's already long list of new political parties. "We want to develop Islamic teachings while upholding the Republic of Indonesia," Deliar told reporters at the Al-Azhar Grand Mosque in Kebayoran Baru, South Jakarta.

RI starts marketing debt exchange program

RI starts marketing debt exchange program NEW YORK (Dow Jones): Indonesia will begin marketing to foreign banks a program to exchange between US$8 billion and $10 billion in debt contracted by the country's banks into new loans in early July, a source familiar with the plan said Thursday.

Closing down banks is last option: Sjahril

Closing down banks is last option: Sjahril JAKARTA (JP): Indonesia's financial authority would not immediately liquidate banks which were not able to fulfill the minimum 4 percent capital adequacy ratio by the end of this year, Bank Indonesia Governor Sjahril Sabirin said yesterday. "We will not take the decision to close down the banks abruptly.