Commentary: Indonesia needs investment to head off stagflation By Andy Mukherjee Bloomberg News TUESDAY, MARCH 7, 2006 The Indonesian authorities are faced with the unenviable task of fighting inflation in a slowing economy. Ever since the Indonesian government cut its pernicious fuel subsidies in October, more expensive gasoline and diesel have pushed up the inflation rate to more than 17 percent, compared with an average of 8 percent in the first nine months of 2005.

Applying tax regulations to foundations Pahala Nainggolan, Jakarta Foundations (yayasan) are treated as taxable entities by the inclusion of foundations in the 1994 Income Tax Law. This means all tax obligations apply to foundations such as book keeping to show income and expenses, the payment of income tax, filing tax returns and withholding income tax of employees and vendors. The equal treatment of foundations and corporations has been criticized.

Kadin skeptical about new investment policy The Jakarta Post, Jakarta The business community, tired of the government failing to deliver on promises, is demanding it come through this time by implementing its latest economic policy package to increase investment and infrastructure development in the country. "Implementation is certainly the key word here.

Regaining the respect of the investment community John A. Prasetio, Jakarta Despite some cynicism, the overall reaction to the Feb. 27 policy package to improve the investment climate has been quite positive. At the very least, the package is seen as a tool that could help bring about a sense of alignment among different ministries, and reduce potential "turf conflicts" between central and local governments which often cause confusion and frustration for the investment community.