The central bank has warned of a rising risk from consumer loans amid the recent rise in total bank lending, which has already exceeded its 22 percent growth target for this year and is expected to add another 25 percent next year. Bank Indonesia director for banking research and regulations Halim Alamsyah said Monday more consumer loans could face default if household income weakens, with banks themselves facing regulatory constraints to resolve the potential bad debts.

Last week, a group of political consultants from all over the world gathered in Bali to discuss, promote and celebrate democracy. The 3-day annual conference was opened by the President, with substantive speeches reaffirming Indonesia's commitment to the democratic way of life. The views of the leaders from the world's single-largest Moslem population had significant impact on the attending delegates.

Australia-based Indo Mines Limited will go ahead with plans to build a US$600 million pig iron plant in Kulon Progo, Yogyakarta, having secured the government's approval for a 30-year contract of work for the operation, an official says. Simon Sembiring, the Energy and Mineral Resources Ministry's director general for geology and mineral resources, said Monday the approval had been given with the company having agreed to comply with all requirements set by the government.

The antitrust body's questionable ruling against Singapore's Temasek Holdings, its subsidiaries and Telkomsel on Monday just added more evidence of the legal uncertainty that has kept most foreign investors away from Indonesia.

The JSX has two categories of stocks: 1. Those that any investor from any country can purchase 2. Those that only Indonesian investor's can purchase I wonder if they'll put Pertamina in cat. 1. If that's the case and "foreigners" gain a controlling stake, then it could end up being an improvement, but I really doubt those parochial NKRI nationalists would even consider such a thing. Improvement?? Allah forbid!

PT Harita Prima Abadi Mineral, Indonesia's largest bauxite producer by volume, is in talks with a Chinese alumina producer to build an alumina refinery in West Kalimantan, Dow Jones Newswires reported on Tuesday (13/11/07). The plant would be built near PT Harita's mine, said a company official, who wished to remain anonymous. "We're negotiating with them to open an alumina plant," he said.

The government plans to privatize oil and gas company PT Pertamina in 2012 via an initial public offering, Minister of State Enterprises Affairs Sofjan Djalil said Tuesday (13/11/07). Starting in December, Pertamina's management will adopt all regulations issued by the government's capital market watchdog Bapepam in running the company. "We need five years to increase Pertamina's value," Dow Jones quoted Djalil as telling a press conference in Bali.

PT Excelcomindo Pratama plans to spend $650 million on 2008 capital expenditure, which will include development of fiber optic networks and base transmission system across Indonesia, Dow Jones Newswires reported. "To finance the capex next year, we plan to issue either bonds or seek bank loans," Hasnul Suhaimi, president director and chief executive of the nation's third-largest telecommunications company by subscribers, told reporters. He didn't provide further details on the bond issue plan.

Around 20 Taiwanese footwear companies will move their operations from China to Indonesia with a total investment of $4 billion, an official of the industry ministry said, Asia Pulse reported. Multifarious industries director Nugraha Sukmawidjaya said an extension of anti-dumping sanctions on Chinese footwear products in the European Union prompted the relocation of the factories from China.

Foreign direct investment (FDI) doubled in the first ten months from the same period a year ago, partly due to strong investment in sectors such as telecoms and transportation, the state investment agency (BKPM) said on Tuesday, Reuters reported. Actual foreign investment rose 103% to $9.08 billion in January-October. Analysts cited by Reuters said the increase came amid improving investor confidence and against a backdrop of falling interest rates and a largely stable currency.

In a week in which the Central Bureau of Statistics (BPS) reported third-quarter growth of 6.5%, the finance ministry said the government will push funds into the economy in the final quarter to further boost economic activity. The Investment Coordinating Board (BKPM) announced on Tuesday (13/11/07) that actual foreign investment had doubled in the first 10 months while actual domestic investment rose by 144%.