Indonesian Political, Business & Finance News

Archive: 31 August 1999

57 articles found

Separation pay not ethical

Separation pay not ethical The pros and cons about the decision to give separation pay worth Rp 150 million to each of the outgoing members of the House of Representatives have led to polemics with various assumptions and allegations being exposed in our mass media, all basically questioning the reason of the government to make this decision while the country is still gripped by the deep economic crisis.

APPC provides links to NGOs

APPC provides links to NGOs JAKARTA (JP): Asia Pacific Philanthropy Consortium (APPC), an organization dedicated to charity and community service, said on Monday it was ready to match Indonesian corporations with local non-governmental organizations (NGOs).

1.3 percent not 13 percent

1.3 percent not 13 percent We refer to your article titled Riau pulp's production falls 13 percent, says ARH (The Jakarta Post, Aug. 5, 1999). We would like to bring to your attention the fact that there was an error in the headline. The headline should read as Riau pulp's production falls 1.3 percent... P. DARITAN Riaupulp, Jakarta

Phone firm doesn't pick up the phone

Phone firm doesn't pick up the phone On Aug. 26, 1999, my boss was departing to the U.S. and asked me to check whether his Simpati, SIM card from Telkomsel is able to "roam" in Boston. I called 8282811, Telkomsel's customer service number. I made the call from 8 a.m. until midday without success. Thinking that one of Telkomsel's hunting lines might be broken, I even used two telephone lines simultaneously, but both were answered by answering machines.

Lift restrictions in airline industry: INACA

Lift restrictions in airline industry: INACA JAKARTA (JP): The Indonesian National Air Carriers Association (INACA) has called on the government to lift restrictions disallowing foreign equity investors to acquire a majority stake in local chartered airlines. INACA secretary-general Benny Rungkat said on Monday the removal of the policy on foreign investment was essential to help the country's ailing unscheduled airline operators.

Oil prices inch up after oil ministers meet

Oil prices inch up after oil ministers meet TOKYO (Reuters): Crude oil prices edged higher in early Asian trade on Monday after ministers from three key oil-producing nations on Saturday reiterated their commitment to maintaining oil production cuts until March 2000. But any bullish implications of the supply cut agreement were at least partially offset by a Venezuelan proposal on price targeting that hinted oil producers think prices have risen far enough.

KPN to quit Telkomsel

KPN to quit Telkomsel AMSTERDAM (Dow Jones): Dutch telecommunications company Royal KPN NV (KPN) said Monday that it plans to offer a so-called free- access Internet service, and that it would consider selling its stake in PT Telkomsel, its Indonesian operations. During a press conference held after the company posted its first-half results, Chief Financial Officer Cees Griffioen said the company plans to offer residential customers Internet access for only the price of a local phone call.

Dismiss civilian forces: Observers

Dismiss civilian forces: Observers JAKARTA (JP): Political observers supported on Monday Amien Rais' recent call for the dissolution of militias of supporters of presidential candidates Megawati Soekarnoputri and B.J. Habibie. Nurcholish Madjid, Syamsuddin Haris and Muhammad A.S.

Astra back in the black

Astra back in the black JAKARTA (JP): Publicly listed PT Astra International reported on Monday a consolidated net profit of Rp 496 billion (about US$66 million) in the first half of this year, a meaningful recovery from losses of Rp 2.85 trillion in the same period last year. The turnaround resulted mainly from the appreciation of the rupiah's value against the U.S. dollar, from Rp 14,900 per dollar on June 30, 1998, to Rp 6,726 per dollar this year, the company said in a statement.

Labuan offshore banks post losses

Labuan offshore banks post losses KUALA LUMPUR (Dow Jones): Offshore banks operating in Malaysia's tax haven of Labuan island on the north coast of Borneo posted a pretax loss of US$268.9 million for 1998, swinging from a pretax profit of $120.3 million the year before. It was the first loss incurred by the Labuan offshore banks since the tax haven was established nine years ago.

Where to go in Bandung:

Where to go in Bandung: Exhibition * Painting Exhibition by Pupung, at Gedung Antik Yayasan Pusat Kebudayaan, Jl. Naripan 7-9 (Phone: 022 435639), Aug. 31 to Sept. 3. Performances * Puppet Show, at Gedung Kesenian Rumentang Siang, Jl. Baranang Siang 1, Kosambi (Phone: 022 433562), 9:30 p.m., Sept. 4. * Sundanese Traditional Drama, at Gedung Kesenian Rumentang Siang, 8 p.m., Sept. 11.

Men's doubles team expected to do well: PBSI

Men's doubles team expected to do well: PBSI By Primastuti Handayani DENPASAR (JP): Indonesia's new partnerships in the men's doubles are expected to create surprises in the US$150,000 Sanyo Indonesia Open, which will start here on Wednesday. The new pairs of Flandy Limpele and Wahyu Agung and another pair of Antonius and Halim Heryanto have a good chance to reach the quarterfinals.

Malaysia deports 25 Indonesians

Malaysia deports 25 Indonesians MEDAN, North Sumatra: Malaysia has deported 25 Indonesian workers for not having passports and they are expected to arrive at the Belawan port of Medan this week, Imam Soeparapto of the Immigration office here told Antara. The regional government and local immigration office have urged Indonesians wanting to work in Malaysia to complete travel documents and avoid immigration violations. "Their acts (of violating the rules) smears the Indonesian image in Malaysia.

Indonesia and the future of ASEAN

Indonesia and the future of ASEAN This is the second of two articles based on an address by Rodolfo C.

Conversion Rates

Conversion Rates Bank Indonesia's conversion rates on Aug. 30, 1999: Buying Selling Rp Rp U.S.

East Timorese go to polling stations across Indonesia

East Timorese go to polling stations across Indonesia JAKARTA (JP): Thousands of East Timorese living outside the province thronged to polling stations across the country on Monday. Proindependence leader Jose Alexander "Xanana" Gusmao was among at least 1,622 East Timorese who cast their votes in Jakarta. The United Nations Information Center in Central Jakarta was open from 9 a.m. to 6 p.m. for voters, who traveled from a number of cities and provinces to vote in the direct ballot.

Message by the Charge d'Affaires a.i. on Malaysia's National Day

Message by the Charge d'Affaires a.i. on Malaysia's National Day As Malaysia celebrates its 42nd anniversary on 31 August 1999, I would like to take this opportunity to express satisfaction on the state of bilateral relations currently enjoyed by Malaysia and Indonesia. The shared similarities particularly in culture and language between our two countries have helped reinforce the bond of friendship and understanding at all levels of both societies.

Nomura Jafco to close funds

Nomura Jafco to close funds JAKARTA (JP): PT BNI Nomura Jafco Investment and Singapore- based Nomura/Jafco Investment (Asia) Ltd. have sold their entire shares in publicly listed cosmetics producer PT Tancho Indonesia in line with the close of their investment funds. In notices sent to the Jakarta Stock Exchange (JSX), the two companies said they sold all their Tancho shares to Mandom Corporation, the current majority shareholder, on Aug. 23 at Rp 2,700 each.

American arrogance

American arrogance Once again, the United States is displaying its arrogance and double-standard in matters of foreign policy. The sincerity of Indonesia's commitment in holding a referendum in East Timor is a good deal better than Washington's commitment in the case of the Israeli-Palestinian conflict, which remains unresolved up to this very moment. The United States under Clinton's leadership shares for a good part in the responsibility for this state of affairs.

Can capital markets beat crisis?

Can capital markets beat crisis? By Rini M.S. Soewandi The following article is based on a paper presented at the Capital Market Conference on Aug. 24, 1999 in Jakarta. JAKARTA (JP): The role of business is critical at this time in pushing along what we hope is the beginnings of recovery. People at every level of society are dependent on us to do our part.

Observers praise East Timor ballot

Observers praise East Timor ballot JAKARTA (JP): Both local and international observers responded favorably to the largely peaceful direct ballot in East Timor on Monday. Indonesian Minister of Foreign Affairs Ali Alatas, who helped broker the historic vote in East Timor, told the Associated Press Television News he was filled with "hopeful anticipation". However, he added it was too soon to say he was "relieved".

Severed head meets body in Purworejo

Severed head meets body in Purworejo JAKARTA (JP): A severed head discovered in Jakarta last Friday matched a body found in Bajan, a district of the Central Java city of Purworejo, Jakarta Police chief Maj. Gen. Noegroho Djajoesman said on Monday. "But we are still waiting for the results of blood tests before making a final conclusion about whether the two parts really match," Noegroho told The Jakarta Post in a telephone interview.

Banten area expects tourist boom to start next year

Banten area expects tourist boom to start next year The Jakarta Post in cooperation with PT Banten West Java Tourism Development Corporation, will be presenting weekly issues over the next six months on the attractions and activities of the Banten region. JAKARTA (JP): West Java's Banten region, which claims to have multiple tourist attractions, expects to see tourism boom starting next year, with a significant increase in international tourist arrivals.

KPU told to revoke seat allocation decree

KPU told to revoke seat allocation decree JAKARTA (JP): President B.J. Habibie has demanded the revocation of an election commission decree granting legislative seats to parties that failed at the ballot box, Antara said on Monday.

Habibie says Aceh referendum impossible

Habibie says Aceh referendum impossible JAKARTA (JP): Aceh students demonstrated in Banda Aceh on Monday, demanding a referendum to determine their own future, while President B.J. Habibie here flatly denied this was possible. The President also said the reestablishment of the military command scheduled for Wednesday would be postponed. Minister of Defense and Security/Indonesian Military (TNI) Chief Gen.

Editor jailed for 6 months over falsified report

Editor jailed for 6 months over falsified report JAKARTA (JP): South Jakarta District Court on Monday sentenced managing editor of biweekly Warta Republik tabloid, Hoessein Madilis, to six months in jail for publishing a falsified report of an alleged triple sex scandal, involving former vice president Try Sutrisno, former minister of defense and security Edi Sudradjat and a widow, identified as Nani.

Writing on the wall

Writing on the wall President B.J. Habibie's staunch supporters may understandably take International Monetary Fund (IMF) and World Bank pressure for a speedy and satisfactory resolution of the Bank Bali scandal as a game of power politics, capitalizing on the case to damage Habibie's chances in the November presidential election.

Youths ask Pertamina to clarify US$6.1b graft

Youths ask Pertamina to clarify US$6.1b graft JAKARTA (JP): About 60 activists from several youth organizations demanded on Monday that state-owned oil and gas company Pertamina clarify an independent financial audit showing that it had incurred losses of US$6.1 billion over the past two years due to corruption and gross inefficiency. Staging their protest in front of Pertamina's head office on Jl.

BCM survives bankruptcy suit

BCM survives bankruptcy suit JAKARTA (JP): The Central Jakarta Commercial Court has rejected a bankruptcy claim filed by listed Bank Internasional Indonesia (BII) against the debt guarantors of PT Bentala Coal Mining (BCM) on procedural reasons. Purwoko J. Soemantri, the lawyer for PT Bentala Coal Mining, said that the court's decision was issued on Aug. 25 in favor of his client.

Two bodies found in Bogor

Two bodies found in Bogor BOGOR (JP): Two male bodies were found here at separate places on Monday. The first body, identified as an ojek (motorcycle taxi) driver, was found by Pasir Maung villagers residents of Cijayanti hamlet in Citeureup at 6:30 a.m. The second body was discovered a few hours later at kilometer 25 on the Jagorawi toll road in the Gunung Putri area.

Indonesia regrets KL's proposal to delay cut in tariffs

Indonesia regrets KL's proposal to delay cut in tariffs JAKARTA (JP): Minister of Industry and Trade Rahardi Ramelan said on Monday that Indonesia regretted Malaysia's proposal to delay the cut in tariffs on automotive products by the year 2000 as agreed to in the Association of Southeast Nations (ASEAN) Free Trade Area (AFTA).

House to summon banking authorities

House to summon banking authorities JAKARTA (JP): The House of Representatives will summon Minister of Finance Bambang Subianto, Indonesian Bank Restructuring Agency (IBRA) chairman Glenn S. Yusuf and Bank Indonesia Governor Sjahril Sabirin on Thursday to disclose their findings in the Bank Bali scandal. "We'll summon the banking authorities on Sept. 2 to disclose their audit results," House member Ichsanuddin Noorsy said on the sidelines of a seminar on banking.

Former councilors urged to return cars

Former councilors urged to return cars JAKARTA (JP): The City Council expects 11 former councilors to return their official cars so they can be used by the newly elected councilors, an official said on Friday. Council secretary Soemarto said he would write to the former councilors to return the cars -- nine Timor sedans and three Toyota Corona sedans. "However, I hope that they understand and return the cars soon without waiting for our formal letters," Soemarto said.

Prosecutor demands two years for Tommy

Prosecutor demands two years for Tommy JAKARTA (JP): Prosecutors asked the South Jakarta District Court on Monday to sentence the two key figures in wholesale firm Goro's land exchange deal with the State Logistics Agency (Bulog), Hutomo "Tommy" Mandala Putra and Ricardo Gelael, to two years in jail and order them to repay Rp 28.15 billion the state lost in the transaction. Prosecutors read their demands at the separate trials of the two suspects.

Zurich opens service center

Zurich opens service center JAKARTA (JP): Indonesia's Zurich Financial Services officially opened on Monday its new sales and service center at Gedung Rifa in South Jakarta. The service center is designed as an integrated service for the company's life and nonlife insurance customers. PT Zurich Life Insurance president Ronald Cheyne said the service center had generated Rp 700 million (US$93,000) in new premium income since operations started about two and a half months ago.

Pertamina receives loan

Pertamina receives loan JAKARTA (JP): U.S. Exim Bank has agreed to provide state-owned oil and gas company Pertamina with a US$285 million loan facility to refinance part of its debt to an international bank syndication led by Hong Kong's Citicorp, Pertamina said on Monday. Company spokesperson Ramli Djaafar said in a statement Pertamina had borrowed $633 million from the bank syndication to finance its project to overcome the bottleneck at its Cilacap refinery in Central Java.

KONI short of funds: Official

KONI short of funds: Official JAKARTA (JP): National Sports Council (KONI) deputy chairman Arie Sudewo said on Wednesday that KONI had not succeeded in securing sufficient funds to finance sports development or to send athletes to sports events. "In the national congress held last February, we pledged to raise some Rp 300 billion as an 'eternal' fund. But until now, we have no cash in hand," he said.

State security bill needed, Muladi says

State security bill needed, Muladi says JAKARTA (JP): Minister of Justice Muladi said on Monday that despite mounting criticism against the draft of the state security bill, the government would not veto it. Students told legislators on Monday that they rejected the government-sponsored state security bill because they feared it would allow excessive power of the military.

3-in-1 kids rally for release of friends

3-in-1 kids rally for release of friends JAKARTA (JP): A group of 25 three-in-one people staged a rally in front of the City Hall, demanding their friends, netted in a city-sponsored raid last week, be freed soon.

SSX to trade new bonds

SSX to trade new bonds SURABAYA (JP): The Surabaya Stock Exchange (SSX) said on Monday it has signed a preliminary agreement with six local companies for the listing of their Rp 6 trillion (about US$790 million) worth of bonds at the exchange. SSX president Anton Natakoesoemah said here that the bonds of the state-owned pawnshop service company Perum Pegadaian would be listed with a total value of Rp 135 billion, Bank NISP Rp 500 billion, and PT Indah Kiat Pulp & Paper Rp 2 trillion.

Thieves threaten turtle conservation at Sukamade coast

Thieves threaten turtle conservation at Sukamade coast By Gin Kurniawan and M. Falach BANYUWANGI, East Java (JP): At daybreak, a sampan arrives and three passengers leap out of it. They walk stealthily along the coast and pierce the white sand of the beach with their iron sticks. When their sticks strike something peculiar, they dig into the sand with their hands. That is what turtle egg thieves do on Sukamade Coast in Banyuwangi district, East Java.

Malaysia agrees to help finance Indonesia's rice imports

Malaysia agrees to help finance Indonesia's rice imports JAKARTA (JP): Minister of Trade and Industry Rahardi Ramelan said on Monday that Malaysia had pledged to finance the procurement of 500,000 metric tons of rice for crisis hit Indonesia. Rahardi, who is also the chairman of the State Logistics Agency (Bulog) told reporters of the results of his visit to Malaysia with President B.J.

Do not repeat 1965 massacre: Gerwani

Do not repeat 1965 massacre: Gerwani JAKARTA (JP): A former executive of Gerakan Wanita Indonesia (Gerwani), a women's group associated with the now defunct Indonesian Communist Party (PKI), has called on Indonesia's younger generation not to repeat the mistakes of their predecessors who in 1965 massacred tens of thousands of people linked to PKI.

BNI loses Rp 2.85 trillion

BNI loses Rp 2.85 trillion JAKARTA (JP): Publicly listed Bank Negara Indonesia (BNI) reported on Monday unaudited first half net losses of Rp 2.85 trillion (US$371.92 million), compared to a net profit of Rp 70.68 billion in the same period last year. The bank, majority owned by the state, was plagued by a massive negative net interest income, which soared to Rp 4.84 trillion from Rp 91.83 billion during the period.

Hariyanto's decision to quit Indonesia deplored

Hariyanto's decision to quit Indonesia deplored JAKARTA (JP): The National Sports Council (KONI) deplored the decision taken by national badminton player Hariyanto Arbi to switch allegiance from Indonesia to Singapore after he finishes competing in the five-day Indonesia Open in Bali starting on Wednesday. KONI deputy chairman Arie Sudewo told reporters on Monday that KONI would, however, respect Hariyanto's decision regarding his future. "We regret his decision.

Coal mining may sink island

Coal mining may sink island BANJARMASIN, South Kalimantan: Sebuku island may sink if coal mining activities there are continued, a local activist of the Indonesian Forum for Environment (Walhi), an environmental watchdog, said here on Sunday. Nurhalis Madjid said the findings of the Regional Development Study Center of Kotabaru regency showed the 275-square-kilometer island does not have the environmental capability to sustain mining activities.

Asabri scam suspect to face land debt suit

Asabri scam suspect to face land debt suit JAKARTA (JP): Businessman Henri Leo, the main suspect in a Rp 410 billion (US$55.4 million) insurance scam at armed forces insurer Asabri, is now in further trouble after his 38-hectare plot in West Java, to be used to repay his debts, has been claimed by another businessman.

Stock Exchange

Stock Exchange Stock prices on the Jakarta Stock Exchange (in rupiah) on Aug. 30, 1999: Shares Close Change Trading Volume ------------------------------------------------------------ Ades Alfindo 475 0 0 AHAP Insurance 525 0 0 Alakasa Industrindo 275 0 0 Alter Abadi 250 0 0 Alumindo Light Metal 1,200 100 32,500 Aneka Kimia Raya 425 0 0 Aneka Tambang (Persero) 1,525 -25 5,439,000 Anwar Sierad 200 0 45,000 APAC Centertex Corp.

New University of Yogyakarta opens

New University of Yogyakarta opens YOGYAKARTA: The Teachers Training Institute (IKIP) of Yogyakarta was officially declared a state university under the new name of University of Yogyakarta on Saturday. Through a presidential decree on August 4, six teachers training institutes in the country had their status changed to state universities.

Hotel Mulia holds social program

Hotel Mulia holds social program JAKARTA (JP): Hotel Mulia Senayan on Jl. Asia Afrika in South Jakarta organized its first social welfare program on Friday, providing free circumcision for 77 children in the neighborhood. "Through this program, we'd like to display to the people our concern for low income families," the hotel's assistant public relations officer, Alice Joe, said. Covering their faces with peci (black caps), the boys found it difficult to deal with the operations.

East Timorese vote in UN polls

East Timorese vote in UN polls DILI, East Timor (JP): East Timorese cast their votes on Monday in a historic, largely peaceful self-determination ballot to choose whether to remain part of Indonesia or form an independent state. Over 80 percent of the 451,000 registered voters turned out at polling booths, with the UN Mission in East Timor (UNAMET) calling the day "very successful".

Malaysia insists capital control the right move

Malaysia insists capital control the right move This is the second of two part series, based on Prime Minister Mahathir Mohamad's monthly column Dr. Mahathir's World Analysis which was first published in Mainichi Shimbun. KUALA LUMPUR: We have said right from the beginning that the present international financial regime exposes newly emerging economies and middle-income countries to very destructive currency trading and manipulation by the hedge funds and other currency traders.

Expats hand out food for the poor

Expats hand out food for the poor BEKASI (JP): A group of 12 expatriates in the We Care Fund (WCF) program distributed two tons of rice and other basic commodities to poor families in several villages in Tarumajaya subdistrict here on Saturday. They handed over seven kilograms of rice, 10 eggs and eight packages of instant noodles to each of 360 family heads in the subdistrict. The food aid is worth about Rp 10 million (US$1300).

Bus owners threaten strike for fare hike

Bus owners threaten strike for fare hike JAKARTA (JP): A group of some 160 bus owners, drivers and conductors gathered at City Hall on Monday to demand Governor Sutiyoso immediately raise bus fares in the capital. Arriving in 37 buses and minibuses from a number of bus companies, including Metro Mini, Kopaja, Himpurna, Mayasari Bhakti, ARH, Agung Bakti, Koantas Bima, Hiba and Pahala Kencana, the group repeated the threat of a massive strike if the governor failed to raise fares.

U.S.-Manila ties face obstacle

U.S.-Manila ties face obstacle MANILA (AFP): Failure to extradite a fugitive friend of Philippine President Joseph Estrada to the United States could hurt Manila's ties with Washington, the justice secretary said on Monday. In a comment filed to the Supreme Court, secretary Serafin Cuevas said the Philippines had an obligation to hand over businessman Mark Jimenez to U.S. authorities since both governments were bound by an extradition treaty. The U.S.

Gus Dur tells NU not to back Megawati

Gus Dur tells NU not to back Megawati JAKARTA (JP): Abdurrahman Wahid says he has prohibited leaders and members of his 30 million-strong Nahdlatul Ulama from supporting presidential candidate Megawati Soekarnoputri of Indonesian Democratic Party of Struggle (PDI Perjuangan).

The legal system no longer works

The legal system no longer works Lawyer Hotma Sitompul would seem to have a point when he argued (as he did so vehemently on the 7 p.m. TVRI news the other night) that alleged corruption cases should be processed through established legal channels. In a country with a functioning legal system, this would be a valid viewpoint. What he chose to ignore (and he, or all people, surely know this) is that at present the entire legal system in Indonesia is a tool of the status quo.