Consumer protection groups criticize
Consumer protection groups criticize insurance firms over all risk policies
Consumer protection groups criticize insurance firms
Consumer protection watchdogs demanded insurance companies to provide consumers with detailed explanations about their products, particularly the "all risk" policies to avoid misinterpretation.
The Indonesian Consumer Protection (YLKI) and the Indonesian Insurance Consumer Protection (YLKAI) said that many consumers had complained that their "all risk" clause did not cover floods.
"The term 'all risk' needs to be clarified whether it covers natural disaster claims or not," Daryatmo, a legal consultant at YLKI, told The Jakarta Post on Monday.
Mira Amalia Malik, chairwoman of YLKAI, was of the same opinion saying that a policy document normally stipulated the list of risks to be covered.
"Insurance companies must give detailed explanations about their products," she said.
Both said that the misinterpretation of the term "all risk" amongst the public is a growing concern. Particularly, in regard to natural disaster-related risks.
In the aftermath of the recent floods, many insurance policy holders were disappointed after learning that their "all risk" insurance did not cover floods.
2. Vessel ( 3 X 18
France provides soft loan to curb illegal fishing
The Indonesian and French governments signed on Monday an agreement on the financing of a project to curb rampant illegal fishing in Indonesian waters by foreign vessels.
The French Embassy in Indonesia said in a statement that the agreement had been signed by the French ambassador Herve Ladsous and the director general for economic affairs at the Ministry of Foreign Affairs, Makarim Wibisono.
Under the agreement, the embassy said, the French government would grant a soft loan worth 9.38 million euros (US$8.23 million) to help Indonesia in implementing a Fishing Vessel Monitoring System (VMS), a satellite-based technology developed by French company CLS Argos, a subsidiary of the French Space Agency (CNES).
Under the terms of the agreement, Indonesia will pay back the loan over 20 years with a five-year grace period and interest of 2.35 percent per year.
Using the VMS technology, the Ministry of Fishing and Maritime Affairs will be able to track down the movement of fishing vessels which illegally enter the country's waters, the embassy said adding that major fishing countries like Peru, Russia, and Japan use similar technology.
3. Duit ( 2 X 28
Asian monies mixed late, yen supported 135 yen per dollar
Dow Jones Singapore
Asian currencies were mixed in holiday-thinned trade late Monday, languishing in familiar ranges, as the yen, while wobbly, remained supported around the psychologically important 135 yen threshold to the dollar, dealers said.
Market players, wary of any potential volatility in the yen under thin market conditions during Asian time or on Wall Street, refrained from taking any major positions. Most financial markets in Asia are closed this week, at least for the first three days.
On Monday, Japanese markets were closed for National Day, while South Korea and Taiwan were shut ahead of the Lunar New Year holidays, which start Tuesday. Most foreign exchange players in Singapore had left after lunch.
With South Korea, Taiwan and Singapore to closed through Wednesday, trading in the region's foreign exchange markets will likely be paltry, dealers said.
The dollar was quoted at 134.74 yen at 0620 GMT (1:20 p.m. Jakarta time), slightly higher than 134.61 yen in New York late Friday. The dollar briefly tested 135 yen in New York, after staying below 134 yen for most of the day earlier in Asia that day.
There were few trading incentives Monday.
The Group of Seven finance ministers and central bank governors at their weekend meeting in Ottawa were more upbeat about the prospects for a global economic recovery.
3. Peso ( 2 X 20
Argentina peso down 9% as trading resumes
Peso down nine percent as trading resumes in Argentina
The Argentine peso fell nine percent, with the dollar selling at 2.30 pesos when currency operations resumed in Argentina Monday with full flotation of the currency, after being suspended for a week.
Within minutes of opening, prices fluctuated between currency traders in the capital, where some sold the greenback at 2.50 pesos.
Before currency trading was suspended, the dollar sold for 2.10 pesos on Friday, Feb. 1.
Operations were halted for a week after the government did away with a dual exchange rate system by eliminating a fixed dollar rate of 1.40 used for certain transactions.
A decision to do away with restrictions on withdrawals from checking accounts also came into effect Monday, leading to concern that crisis-weary Argentines could seek refuge in the dollar, putting the peso under further pressure.
Monday's opening dollar price of 2.30 pesos, represents a 57 percent devaluation since the 11-year-old parity between the two currencies was eliminated last month.
Argentines selling dollars were offered 1.90 pesos to the greenback.
Over the weekend, authorities went all out to convince Argentines not to scramble for dollars, warning them that the greenback's value could shoot up initially, only to come down once the central bank intervenes.
Many analysts agreed the market would eventually settle, with some even predicting the dollar could fall below the two peso level.
4. Gold ( 2 X 20)
Europe gold drifts back in thin trade
Europe gold drifts back in thin trade
Gold prices gave up in European morning trading on Monday some of the gains made in last week's rally, and traders said they saw bullion consolidating near US$300.00 an ounce as major buyers were absent from the market.
Bullion finished last week in a powerful position after a spectacular rally triggered by a gold rush in Japan by investors worried over the problems facing the country's banking system pushed spot prices near their two-year highs of $307.50 an ounce.
The market attempted to break higher but momentum was lost as profit-taking capped the move.
At 1144 GMT (5.44 Jakarta time) spot gold was indicated at $300.00/301.00, down from Friday's New York close at $303.50/304.50.
The metal was fixed softer at $301.50 a troy ounce, down from $304.30 an ounce on Friday afternoon.
Traders said bullion appeared well positioned to consolidate at current levels but trading was likely to pick up on Tuesday, with bullion supported by renewed buying interest from Japan.
"Prices will hover just above $300 today...gold looks happy at these levels...tomorrow we might see another push higher, probably $307-$311," another trader said.
Dealers said that with continuing Japanese demand and funds increasing their gold holdings, bullion looked well supported in the near term but warned that the metal was heavily overbought.
Silver tracked gold and spot was indicated at $4.40-4.42, down from Friday's New York close at $4.45/4.47.
Spot platinum was quoted at $472.00/477.00, versus $461.00/466.00 at the last close in New York, while palladium was at $368.00/378.00, down gently from Friday's New York's close.