As a result of prudent macroeconomic policies, the Indonesian government now has sufficient resources to finance the country's infrastructure development and reduce poverty, according to a World Bank report.

The losses caused by the massive flooding in Greater Jakarta last week may reach up to Rp 8 trillion (US$879 million), almost double the earlier estimate of about Rp 4.3 trillion, a senior official at the National Development Planning Agency (Bappenas) says. Speaking Monday in Jakarta, Lucky Eko Wuryanto, the Bappenas director for urban and rural spatial planning, said that the latest estimate was based on figures provided by industry and institutions affected by the flooding.

The presidential regulation on the modern retail market scheduled to be issued in March will not restrict the operation of foreign retail chains, which have been criticized by some for the massive inroads they are making into the Indonesian market.

TEMPO Interactive, Jakarta: The Research and Technology Ministry will distribute 20,000 compact discs of Indonesia’s software Go Open Source (IGOS) 2006. This software will be distributed to all governmental institutions; universities, open sources communities and Islamic boarding schools (pesantren). State Minister of Research and Technology, Kusmayanto Kadiman, said the distribution is in order to familiarize the public with the IGOS program.

Jakarta (ANTARA News/Asia Pulse) - Publicly listed plantation company PT Bakrie Sumatera Plantations (BSP) (JSX:UNSP) said it plans to build four more crude palm oil processing plants in Sumatra at a total estimated cost of US$22 million, BSP Development Director M. Iqbal Zainuddin said. Currently BSP has two CPO processing plants in Jambi and West Sumatra to process fruits from its plantations. The company produces 150,000 tons of CPO annually.

Jakarta (ANTARA News) - Singaporean investment company Excel Holdings Private Limited which is fully owned by Oversea-Chinese Bank Corporation Ltd (OCBC Bank) will acquire more than 25 percent of the paid-up shares of PT Trimegah Securities (TRIM) from some of the latter`s stakeholdders, an Excel spokesman said.

Medan, North Sumatra (ANTARA News) - Indonesia`s palm oil badly needed certification for export following allegations from non-governmental organizations and many other quarters in Europe that the use of the product was not friendly to the environment, a businessman has said.

Jakarta (ANTARA News) - Dignitaries gathered in the Gayo highlands outside Takengon on February 10 to celebrate the dedication of a coffee plantation project that will revitalize the premium coffee industry of Central Aceh, Nanggroe Aceh Darussalam province, a statement said. The renovation of the coffee plantation and processing plant is part of a US$ 10 million development project funded by the U.S. government through the United States Agency for International Development (USAID), the U.S.

Banda Aceh (ANTARA News) - Nanggroe Aceh Darussalam province is now in need of investments to develop its economy and to create prosperity for the local people, Chairman of the Aceh provincial legislative council (DPRD) Sayed Fuad Zakaria said here Tuesday. Thus, Sayed said he supported the presence of investors who were ready to sink their capital in the long term to develop public economic infrastructures in the Indonesia`s westernmost province.

note the lufthansa logo ... anyway, i really hope they clean it up a bit before sending it to indonesia.

When I read this i thought the A320 was the big new bird from airbus and decided to check it via google .. the first thing that came up was this picture Thats not a good sign!

Jakarta (ANTARA News) - Indonesia now has enough money to pay for its development programs as prudent macroeconomic policies have resulted in a 15 bln usd windfall to spend on reducing poverty, the World Bank said. Cutting fuel subsidies in 2005, declining interest payments on its debt and increasing revenues have handed Indonesia the largest increase in fiscal resources for development since the oil boom of the mid-1970s, the World Bank said in a review of Indonesia's public expenditure.

Export companies affected by the recent floods in Jakarta have asked the government for its help in shunning penalties foreign buyers are attempting to impose over export delays. They have also asked for support in convincing buyers not to shift their orders to other countries. As the delays in deliveries were due to circumstances beyond their control, they should be exempt from paying penalties or other compensation, the companies said.

sounds like a great idea ... I hope it works

TEMPO Interactive, Jakarta: The World Bank has said it considers that decentralization has changed Indonesia’s fiscal foundations. According to Wolfgang Fengler, a senior economist at the World Bank, public fund transfers in 1996 from the central to regional governments increased significantly to US$25 billion from the previous US$8 billion. The World Bank has projected that the fund transfers will continue increasing up to US$28 billion this year.

The government is considering imposing taxes on iron ore exports to help stimulate the domestic steel industry, Bisnis Indonesia reported, citing an Industry Ministry official. “We're still studying the tax level to be imposed on iron ore exports. The purpose of the export tax is to limit iron ore exports,” Ansari Bukhari, Director General for Metal and Textile Machines at the Industry Ministry, said. Indonesia currently does not tax iron ore exports.

The government, pressing ahead with its program to electrify underdeveloped regions across the nation, will next month hold a tender for the procurement of 30,000 home solar-power units, The Jakarta Post reported on Tuesday (6/2/07). J. Purwono, Director General for Eelectricity and Energy Use at the Energy and Mineral Resources Ministry, said the government had allocated Rp247 billion for the project.

Quote: The central government is aiming to raise Rp40.61 trillion ($4.48 billion) in net bond issues this year after Rp35.9 trillion last year. Net bond issues are gross issues minus certain factors such as maturing debt and bond buybacks. Translation: The government is adding new debt of 4.48B USD. kuku do you know what the bond risk rating? and discount rate? bonds, liquid market in Indonesia?

State-owned sugar producer PT Rajawali Nusantara Indonesia (RNI) will team up with Russian partner JC Prom Sviaz Automatika to modernize its bagasse-fuelled power plant in Indramayu, West Java, Asia Pulse reported on Monday (5/2/07). The capacity of the power plant located near the Jati Tujuh sugar factory of RNI, will be expanded from 5 MW at present to 20 MW in 2008.

Chinese contractors are set to strengthen their domination of electric generating projects owned by state-owned electricity company PLN, Asia Pulse reported on Wednesday (7/2/07). After winning most of the coal-fired power generating projects with capacity of 300 and 600 MW in Java they are potential winners of most similar contracts to be built in other islands. The Chinese contractors are also eyeing contracts to build transmission systems, Kompas reported.

Banks disbursed Rp102.8 trillion ($11.44 billion) in new credits in 2006, bringing the total outstanding credit to Rp832.9 trillion, against Rp695.65 trillion in 2005, Antara reported on Wednesday (7/2/07). The credit expansion was below the target set for that year, although it rose 14.1% from the previous year, the central bank said.

Publicly listed cellular phone operator, PT Excelcomindo Pratama, said it will spend $700 million in capital expenditure this year, up from last year’s $500 million. Part of the funds will be used to build more base transceiver stations (BTS). In addition to internal cash, funds will be raised through bond issues and bank loans, its president Hasnul Suhaimi said, according to an Antara report.

Indonesian flag-carrier, Garuda Indonesia, and privately owned airlines Lion Air, Mandala Airlines and Batavia Air will bring in new aircraft to strengthen their respective fleets. Director General for Air Transport M Iksan Tatang said Garuda will bring in a 737-800, Lion Air and Mandala Airlines a Boeing 737-900 and an Airbus A320, and Batavia Air an Airbus A320 aircraft, Antara reported on Thursday (8/2/07).

The government is set to speed up development of 1,000 low-cost apartment towers in 10 large cities across the country, Antara reported on Thursday (8/2/07). The project is to cope with acute housing problems in urban areas in the country, President Susilo Bambang Yudhoyono said. It will be a priority project in the next five years and subsidy will be provided, he added. The project will be launched in Kemayoran and Pulo Gebang in Jakarta with 20-story towers, he said.

Indonesia has invited Japan to construct 10 Manufacturing Industry Development Centers (MIDEC) within the framework of the Indonesia-Japan Economic Partnership Agreement (IJEPA). "We have asked Japan to develop MIDECs in Indonesia to compensate for an unbalanced partnership, considering that Japan is much more advanced than Indonesia," the Industry Department’s expert staff in charge of strengthening the industrial structure, Achdiat Atmawinata said, according to Antara.

Switzerland will increase its investments in Indonesia this year from $3 billion last year, visiting Swiss President Micheline Calmy-Rey said Thursday (8/2/07). The Swiss leader, who arrived in Jakarta on Wednesday (7/2/07) evening for a three-day visit, made the statement during a joint press conference with President Susilo Bambang Yudhoyono at the State Palace.

The government and the House of Representatives have agreed to speed up their debate on the taxation and investment bills. "I am convinced the two bills will be passed into law this year," House Speaker Agung Laksono said after a meeting with President Susilo Bambang Yudhoyono on Wednesday (7/2/07), according to Antara. The bills were originally scheduled to be passed late last year.

Indonesia has issued new rules allowing its regional governments to issue bonds but the debt has to be denominated in rupiah and sold in the domestic markets, Reuters reported on Monday (5/2/07). "Regional government bonds are regional debt that are offered to the public through a public offering in the capital market. They are only allowed to be issued in the domestic capital markets and must be rupiah-denominated," a Finance Department statement said.

The rupiah will climb 7% by year-end as the central bank's reduction of interest rates to 9.25% attracts global equity funds, said HSBC Holdings Plc. Stock buying by overseas investors will outweigh sales by bondholders as lower yields reduce the appeal of fixed-income assets, said Richard Yetsenga, a currency strategist at HSBC in Hong Kong.