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.