MEPB Indo News

Garuda Indonesia Debt Raised Up to U.S. $ 513 Million

noreply@blogger.com (mepb-assistant) — Wed, 18 Jan 2012 03:30:00 +0000

The total amount PT Garuda Indonesia Tbk airlines debt rose up to 7.7% in 2011 or U.S. $ 513 million or IDR 4.6 trillion, from U.S. $ 476 million in 2010. This was stated by the Garuda Finance Director, Elisa Lumbantoruan.

"The debt increase is because there is a loan of U.S. $ 50 million in 2011 from Citibank, UBS, and Indo Exim," he said.

With the huge amount of this debt, said Elisa, PT Garuda Indonesia has allocated U.S. $ 131 million in 2012 budget to pay the mortgage.

Garuda Indonesia and Debt

"We hope that there is no more loan again this year, so that the total debt remains U.S. $ 400 million," she said.

Regarding the funding sources to pay the debt, the company will take IDR 2.5 trillion from operating cash flow, then the remaining funds from the IPO, and new loans. "It is still plan for the new loan, as it should be approved by the AGM meeting," she said.

Meanwhile, according to Garuda Chief Director, Emirsyah Satar, debt is a reasonable thing in business. "The debt is not against the law. Moreover, the debt is used for business development," he said.

Emirsyah stated that it is impossible that there is no debt in developing the business. "It may continue to grow with equity. The most important thing is the company's ability to pay," he said.

Emirsyah tried to illustrate, in 2006 Garuda's revenue reached U.S. $ 1 billion, with the debt of U.S. $ 900 million. But now the income reached IDR 27.1 trillion, the debt is U.S. $ 517 million. "So, there is a balance, it is sustainable," he said.

Related to the Garuda Indonesia performance in 2011, the company posted revenue of IDR 27.1 trillion from IDR 19 trillion in 2010. For 2012, the revenue is expected to increase 21 percent. "We targeted total numbers of passengers up to 22 million people in 2012. Last year, it was 17.1 million people," said Emirsyah.

Source: Detik

Nike Paid Out $ 1 Million Overtime To The Workers

noreply@blogger.com (mepb-assistant) — Tue, 17 Jan 2012 00:00:00 +0000

Sportswear company, Nike, has finally approved the provision of overtime pay to its workers in Indonesia. The payment of the U.S. $ 1 million or approximately IDR 9 billion overtime will be paid to 4500 workers at PT Nikomas in Serang, Banten.

Nike and Overtime Workers

Representatives of the union stated that the overtime payment for 593,468 working hours have not been paid for 2 years. If Nike continues this to happen, it could create a bad precedent.

"This condition has the potential to cause workers movement in Indonesia," said Chairman of the Indonesia National Workers Union, Bambang Wirahyoso.

Bambang said, the union he led is prepared to fight for the rights of workers everywhere who have to work overtime without getting the extra pay.

The agreement between Nike and the workers at PT. Nikomas occurred after 11-months negotiations. In its statement, Nike said they are ready to protect the rights of its workers. Nike is ready to continue monitoring and supporting so that the situation becomes conducive.

This U.S. sportswear company also offers training programs to the workers in Nikomas. This offer gets positive response from the union.

Actually, the workers in Nikomas have worked overtime without getting paid during the last 18 years. But the Indonesian law only allows the workers to recover their rights for only the last 2 years.

Source: Detik

Rosa’s Lawyer Said: 'Big Chief' Came Out Due To Debt Case

noreply@blogger.com (mepb-assistant) — Mon, 16 Jan 2012 01:00:00 +0000

The story behind the mystery figure 'Big Chief' is starting to be clearer slowly. He was apparently not directly related to the SEA Games project in Palembang, but he arises because of the debt case.

"Ketua Besar"

"Big Chief is related to the debt, not to the project," said Mindo Rosalina Manulang attorney, Muhammad Iskandar.

According to Iskandar, the details regarding the debt affairs will be disclosed at next Monday hearing, January 16, 2012. She will disclose regarding who else is involved in it.

"The certain thing is there is a personal debt. In the communication between the two ‘persons’, one of them mentioned that ‘I was called by Big Chief’," he explained.

On that occasion, Iskandar also reiterated about the term 'Big Chief'. According to him, in the case of Nazaruddin and Rosa there is only 'Big Chief' and 'Chairman', no other terms such as 'Big Boss' or 'Great Leader'.

"Everything be explained, just wait for the perfect timing," Iskandar promised.

Previously, Nazaruddin ever uncovered few terms such as 'Big Boss' and 'Great Leader' in SEA Games bribery case regarding the athletes homestead projects. These terms will be further explained by Rosa.

Source: detik

Indonesia 2012 Economic Growth Is Estimated At 5.8%

noreply@blogger.com (mepb-assistant) — Sat, 14 Jan 2012 16:00:00 +0000

Standard Chartered Bank forecasts that Indonesian 2012 economic growth will reach 5.8 percent, which is lower than the 2011 economic growth (6.5 percent).

"2011 is a year full of crisis, such as the European financial crisis and the "Arab Springs" in the Middle East, but Indonesia's economy managed to grow very well. However, Indonesia must remain cautious for the start of 2012," said Director of Standard Chartered Bank in Indonesia, Tom Aaker.

Economic Growth

Standard Chartered Bank issued a report on the prediction of global economic conditions as well as the economic conditions in some countries. The report showed that global economic growth slowed to 2.2 percent in 2012 from 3 percent in 2011.

Indonesia's 2012 economic growth rate is estimated to 5.8 percent due to the impact of declining foreign direct investment (FDI) and the withdrawal of foreign currency funds that dominate the banking funds, and reduced exports.

"If the Euro deteriorate, the price of debt securities issued by troubled-European-countries such as Greece, Ireland, Portugal and Spain will continue to weaken, eventually European banks have also been affected as there are fallacious securities valued at 300 billion euros," said Standard Chartered Bank economist, Fauzi Ichsan.

This makes the European banking devastated and could not inject fresh capital to maintain the Capital Adequacy Ratio (CAR) in Europe, meaning would withdraw funds Asian banks.

"Foreign exchange is withdrawn from Asian banks would cause banking has foreign exchange shortages to finance capital expenditure. The limited purchase of capital will cause the private investment slows down," said Fauzi.

With these calculations, Standard Chartered Bank estimates that the investment growth is likely to decrease to 8.2 percent from 10.3 percent in 2011. But domestic consumption growth is expected to remain 4.7 percent in 2012.

While the inflation is likely to reach 5 percent in the late 2012 as a result of increased electricity tariffs and fuel prices as well as the rising in rice prices post-flood in Thailand.

According to Standard Chartered Bank, the 0.1 percent budget surplus in gross domestic product (GDP) in 2011 would make the government reject the rise in fuel prices. Despite that the subsidies for the fuel would need 17.5 percent in 2012 state budget. The trick is to increase the tax of the commodity sector such as palm oil and coal.

Indonesia banks interest rate is expected to fall to 5.75 percent in the first quarter of 2012. Bank Indonesia also would reduce the Indonesian banks "net interest margin" into 5.5 to 6 percent, thereby reducing the 2012 bank credit growth up to 20 percent.

The budget deficit would gradually increase from 0.6 percent of the value of GDP in 2010 (from the government target of 2.1 percent) to 1 percent in 2011 (from the government target of 2.1 per cent) to 1.3 percent in 2012 (from target 1.5 percent).

Source: Analisa

Dahlan Iskan Sets One-Year Deadlines for Merpati

noreply@blogger.com (mepb-assistant) — Fri, 13 Jan 2012 16:00:00 +0000

PT Merpati Airlines (MNA) is guaranteed won’t be closed as long as there is no loss on the operational side. However, PT Merpati really has to show his hard work in the year ahead. This was stated by Minister for SOEs, Dahlan Iskan.

Dahlan Iskan dan Merpati

Dahlan explained the demand from Merpati’s employees to work harder to extend the life of the airline. However, Dahlan hoped that the hard work of the employees can proof that Merpati airlines can still survived.

Dahlan highlighted that it is alright if there is still some loses, as long as there is no operational loss. Loss caused by high interest rate or past debt burden are still acceptable.

Moreover, the IDR 561 million government-funding given to support Merpati doesn’t guarantee anything. In fact, Dahlan ever expressed some time ago that that big sum of money would be better spent on buying plantations rather than investing on Merpati. As there is no guaranteed that Merpati airlines can survive with the support fund.

If every Merpati employee gets 2 acres of palm land each, he continued, it could become a benchmark of the employees’ welfare. "But the Merpati employees believe that with their hard work, Merpati could survive. Oh well, we just wait for the next year results," he concluded.

Source: Analisa

ESEMKA Could Exist if There Are Investors

noreply@blogger.com (mepb-assistant) — Thu, 12 Jan 2012 16:00:00 +0000

Mass production of Esemka cars that are assembled by secondary vocational school students would depend on the investors who endorse them. There are numbers of things to be improved from the product side.

Esemka Cars

This is mentioned by the Chairman of the Joint General Industrial Equipment and Motor Cars, Hadi Surjadipradja, in Jakarta. He said, currently there have been national cars produced in Rangkasbitung, Banten factory. The cars are AG-Tawon sponsored by PT Super Hornet Gasindo Jaya.

He reminded that these students from SMKN 2 Solo, SMKN 5 Solo, and SMK Warga Solo, still need to learn a lot. According to him, these students are still lack of experience in industry. Moreover, he added, there are still many things to consider in car production, not only the rules from the Ministry of Industry. Such as the roadworthy requirements, the standard should be the same as the international brand.

"The roadworthy requirements are needed because it related to the safety issues. There shouldn’t be discrimination just because it is produced by high school students, so the certificate of roadworthy requirements isn’t approved," added Hadi.

"It depends on who the investors will be, because the students will keep on changing. As example is the Tawon or Gea production, they already have investors. The progress depends on how aggressive they are," he said.

As being informed by the news, the students from SMKN 2 Solo, SMKN 5 Solo, and SMK Warga Solo, accompanied by Kiat Motor, Klaten, managed to assemble a car that is given a brand name, ESEMKA. These cars have 80 percent of the local content and have been used by Solo Mayor, Joko Widodo, and Deputy Mayor, FX Hadi Rudyatmo.

Source: Kompas

The Government Will Add $ 250 Trillion Debt in 2012

noreply@blogger.com (mepb-assistant) — Wed, 11 Jan 2012 16:00:00 +0000

This year, government still relies on debt to finance budget shortfalls. Government plans to attract new debt amounted IDR 250 trillion. This is stated by Director General of Debt Management, Rahmat Waluyanto.

"We are targeting debts amounting up to IDR 250 trillion in 2012. It could be in the form of the issuance of government securities (bonds), sukuk, sharia, and others. Including Samurai Bond," said Rahmat.

He said the government is optimistic to reach IDR 250 trillion of debt through the issuance of debt securities, mainly due to the raise of Indonesia's investment grade ranking. The increase in ratings would make the cost of debt or interest government debt lower and cheaper.

"We are optimistic about IDR 250 trillion of debt can be achieved due to increased investment grade," said Rahmat.

As known, the total of Indonesian government debt up to November 2011 had reached USD 1816.85 trillion or an increase of IDR 48.81 trillion compared to October 2011 (USD 1768.04 billion).

If compared December 2010 debt (up to USD 1676.85 billion), the amount of the November 2011 debt increased up to IDR 140 trillion. Indonesian debt also rose from 27.5% in October 2011 to 28.2% in November 2011 as per ratio to GDP.

Source: Detik Finance

Government Ensures CNG Infrastructure is Ready

noreply@blogger.com (mepb-assistant) — Tue, 10 Jan 2012 16:00:00 +0000

Government is ready to implement the restrictions on subsidized fuel oil (Bahan Bakar Minyak - BBM) and the transfer fuel usage into compressed natural gas or CNG (Bahan Bakar Gas - BBG). This will commence in April this year. Deputy Minister of Energy and Mineral Resources, Widjajono Partowidagdo, ensured that the conversion-related infrastructure has been prepared.

Compressed Natural Gas

LGV (Liquefied Gas for Vehicle) and CNG (Compressed Natural Gas) are fuel alternatives for the community besides Pertamax. If the policy of subsidized fuel restriction and conversion is applied, vehicles users other than public transportation, public services, and motorcycles are prohibited to use premium.

Widjajono said there shouldn’t be any a problem related to gas and Pertamax supply. As long as there is oil, Pertamax will always be available. The government only needs to produce more Pertamax than premium. "It is the same material (oil) used, so just need to reverse. If it used to be 20% pertamax, 80% premium, now should be 20% premium and 80% pertamax," he said.

The same condition will be applied to gas supply. "It is easier for gas. There shouldn’t be problem as there will be lifting terminal soon. There is an obligation for the contractors to prepare part of its production for transportation," said Widjajono.

The subsidized fuel restriction policy and conversion from fuel to CNG is waiting for the Presidential Regulation. Yusuf Gunawan, Special Presidential Staff for Food and Energy Affairs, said that the government has prepared the legal framework related to the conversion. Not only that, the government has also prepared plans related to the amounts of vehicles and fuel stations which will be built in the conversion target areas, and also prepare the supplies and allocation of gas.

Source: Kompas

Indonesia Sends 34 Nurses to Dubai

noreply@blogger.com (mepb-assistant) — Mon, 09 Jan 2012 16:00:00 +0000

A total of 34 Indonesian nurses Indonesia are currently in the preparation process for working in a leading private hospital in Dubai, Belhoul Specialty Hospital. They consists of 7 midwife nurses, 5 intensive care unit (ICU) nurses, 7 patient nurses, 9 outpatient clinics nurses, and 6 home care unit nurses.

Belhoul Specialty Hospital, Dubai

Indonesian Consulate General in Dubai, Mansyur expressed his full support to Belhoul Specialty Hospital trust in hiring 34 Indonesian nurses for this early stage. "There is big possibility that more Indonesian nurses will be employed in the future," said Mansyur.

Mansyur said, Belhoul Group trust is one indicator that Indonesian professional workers quality is getting international acknowledgement and have more competitiveness in the international labor market.

According to Mansyur, they are observing the opportunity for Indonesian nurses to work in other hospitals in Dubai. Belhoul Lifecare plans to open new branches in the Belhoul Jebel Ali Free Zone hospital district, Dubai.

The hospital which will start operating in March 2012 require hundreds of medical personnel, staffs and nurses. Some of them are from Indonesia.

Currently, Belhoul Lifecare hospital has two hospitals in Dubai, the Belhoul European Hospital, which employs 80 staffs and Belhoul Specialty Hospital with 450 staffs.

So far, Belhoul Specialty Hospital is dominated by nurses from India and the Philippines, and never hires Indonesian nurses.

Source: Kompas

Government Auction 5 Series of Government Securities

noreply@blogger.com (mepb-assistant) — Sun, 08 Jan 2012 16:00:00 +0000

The government will soon auction off five series of government securities (Surat Utang Negara - SUN) with a total indicative value of IDR 7 trillion on January 10, 2012. The fund will be used to fulfill part of the state budget 2012 target.

Government Securities

The five series are SPN03120411 SUN series (new issuance) with an interest payment discount and the due is on April 11, 2012.

SPN012130111 Series (new issuance) with an interest payment discount and the due is on January 11, 2013.

FR0060 Series (reopening) with a fixed interest rate of 6.250 percent, maturing on April 15, 2017, the coupon payment is done on every April 15 and October 15.

Others, FR0061 Series (reopening) with a fixed interest rate of 7.000 percent, maturing on May 15, 2022, coupon payments is done on every May 15 and November 15.

FR0058 Series (reopening) with a fixed interest rate of 8.250 percent, maturing on June 15, 2032, coupon payments is made on every June 15 and December 15.

Directorate General of Debt Management of Ministry of Finance, stated on the press release said the sale of these government securities would be done by the auction system organized by Bank Indonesia.

This will be an open auction by using multiple price method. Winner of the auction to bid non-competitive will pay in accordance with the weighted average yield of the winning competitive bid.

Source: Kompas

Will Indonesia be The Victim of Oil Prices?

noreply@blogger.com (mepb-assistant) — Sat, 07 Jan 2012 16:00:00 +0000

The political situation in the Middle East is tense now due to the nuclear program in Iran, which is a oil major producer country. If there is military friction than it will affect the world oil supply and prices. Indonesian President, Susilo Bambang Yudhoyono (SBY) is worried that Indonesia could be affected by these political tensions, especially because of the raising oil price.

Middle East conflict and Oil Prices

"Indonesia believes the United Nations and the international atomic agency could play a role in finding the best solution on this issue, hopefully a peaceful settlement could be reached. There is no need to worsen and encourage the use of military force from any party whatsoever," explained SBY.

"If anything happens in the Hormuz Strait , there will be a tremendous upheaval on petroleum as well," Yudhoyono said.

Yudhoyono said that during the current military conflict in the region, the world oil prices directly rise, although no changes in supply and demand.

"So the world really worry that there will be disruptions in oil supply, as it will endanger the world. The rising of the price will benefit the oil-produce countries, but developing countries will suffer because of it. Therefore Indonesia hoped all parties to refrain, "explained SBY.

SBY said that today he would sent a letter to United Nations Secretary-General to make appropriate steps so that it can prevent the oil supplies disruption from the Middle East.

"This is solely for the world economy. Developing countries, including Indonesia, are struggling to enhance its growth," said SBY.

Previously, Petroleum Observer, Muhammad Kurtubi, said the tension between the United States and Iran gives a bad impact to oil-importing countries including Indonesia. Because the conflict could inflate the crude oil price up to U.S. $ 150/barel.

Source: Analisa

noreply@blogger.com (mepb-assistant) — Sat, 07 Jan 2012 14:28:00 +0000

Indonesia Tourism Rank Rose Up to 74

noreply@blogger.com (mepb-assistant) — Fri, 06 Jan 2012 16:00:00 +0000

Ministry of Tourism and Creative Economy revealed that Indonesia's tourism competitiveness ranking rose up to 74th rank in 2011 from the previous ranking of 81st in 2009 among 139 countries.

Minister of Tourism and Creative Economy (Menteri Pariwisata dan Ekonomi Kreatif - Menparekraf), Mari Elka Pangestu said that it's a good indication for the development of Indonesia's tourism sector.

Indonesian tourism

Even so, she realizes that Indonesia rank is still far below other ASEAN countries such as Singapore (16th rank), Malaysia (32nd rank), and Thailand (42nd rank).

"So the government policies to accelerate the development of national tourism are still needed," she said.

According to her, the lack of competitiveness in Indonesia is caused by the limited number, variety and quality of human resources in tourism sector. As well as the capacity and quality of research and development in tourism sector not yet optimized.

"Although the national tourism has shown good progress, but there are still some problems," she said.

She noted one of the obstacles is that the tourist destinations in Indonesia are not yet fully ready to compete in the global market.

It is because of the management of the tourist destination hasn’t met the standard of assessment, the utilization of data bases not yet optimized, and the orientation in sustainable tourism development needs to be improved.

In addition, inadequate facilities and infrastructure to support tourism such as transportation sector, either by land, sea, or air, hence there is still lack of public facilities availability.

She also realized that the partnership and cooperation in promoting the tourism among government, private sector, and community have not been optimized yet.

The government policy in boosting the tourism investment climate is not effective. The development of the tourism sector, especially in West and East Indonesia region, still needs to be improved.

The promotion and marketing of Indonesian tourism are also considered not effective due to inadequate tourism information within and outside the country, less optimal partnerships between stakeholders in the promotion and marketing business, and the utilization of mass media, electronic, printed media and ICT as promotional tools not yet optimized.

She also admitted that inadequate promotion of local and international tourism destinations as well as the limited support of local government in supporting regional tourism promotion.

In the future she hoped the tourism sector will be one of the largest contributors for the state income. In year 2010, Tourism sector contributed U.S. $ 7603.45 million or fourth rank in the foreign exchange income.

Source: Analisa

Mari Pangestu Denied Bringing U.S. Franchise to Indonesia

noreply@blogger.com (mepb-assistant) — Thu, 05 Jan 2012 16:00:00 +0000

Minister of Tourism and Creative Economy, Mari Elka Pangestu, has denied that she brought 16 franchises from the U.S. to Indonesia. She said that she simply witnessed the MoU (Memorandum of Understanding) only.

"We stated that there is neither discussion nor meeting between the Minister Mari Pangestu, with the U.S. franchises. Mari Pangestu received an invitation to witness the signing of a memorandum of understanding (MoU) with a franchise partner in Indonesia. And she has assigned the Director General of Tourism Destination Development to attend, "said Head of Public Communication Center for Tourism and Creative Economy Ministry, I Gusti Ngurah Putra on Tuesday (12/20/2011).

New U.S. Francises

Previously, a Professor of University of Indonesia, Sri Edi Swasono, 'pout' Mari Pangestu for bringing 16 U.S. franchises into Indonesia. The government act for allowing 16 U.S. francises into Indonesia is considered not-human and only cared for the capital owners only.

As reported, there are 12 companies that will bring 16 franchises to Indonesia. The twelve companies are incorporated in the Franchise Trade Mission Times / International Franchise Association / U.S. Commercial Service Trade Mission which came to Indonesia for the first time. The delegation was in Jakarta on 12-13 December 2011.

For the initial stage, Johnny Rockets franchise signed a Memorandum of Understanding (MOU) with the Sahid Group to bring the famous brand of U.S. restaurants to Indonesia, with its first location in Bali.

The brands that are engaged in this trade mission are dominated by a food and beverages based franchise, such as:
Applebee's
Denny's
Johnny Rockets
Carvel Ice Cream
Cinnabon
Schlotzsky's
Moe's Southwest Grill
Great American Cookies
Marble Slab Creamery
Pretzelmaker
Pollo Tropical
Rita's Italian Ice
Which Wich
Wing Zone
As for the non-food and beverage franchises are:
Crestcom (leadership training franchise)
The Vitamin Shoppe

Source: detik

This Is Dahlan Iskan's Strategy to Boost Domestic Salt Quality

noreply@blogger.com (mepb-assistant) — Wed, 04 Jan 2012 16:00:00 +0000

Ministry of SOEs (State-Owned-Enterprises) has a responsibility in improving the quality and production of domestically-produced salt. Currently the government company that specializes in salt-produced is PT Garam.

SOE Minister, Dahlan Iskan, has a plan to cover as much as the salt produced land. This is to improve the production and quality of the salt, and stopped imported salt especially salt for consumption.

Salt Production

"Roughly speaking, we will coat every salts area with 'plastic', therefore the salt production and quality can be improved," he said, in the Office of the Ministry of SOEs, on Friday (16.12.11).

According to him, all this time there is only limited produce of first quality salt. Because the first layer is covered with sand and even mud, the second layer still has soil-smell, and the third layer will become the first quality salt in very limited amount.

"With the membrane (plastic coating), all the salt production will be first quality. And it can increase the production up to 20%. In addition, the production is faster because the temperature is higher," he said.

He said the program will be implemented starting next year summer as it is currently still rainy season. They are still calculating how much funds to be prepared.

"Roughly we will need around IDR 20 million / ha, but we are still calculating to get exact amount. This will be done gradually based on the abilities, but can be done in mass as well," he added.

The purpose of the program is that Indonesian will no longer need to import the salt, especially for consumption needs.

"But we will still need to import salt for industry. Because industry really needs a lot of salt such as paper industry and oil mining industries, while domestic production can’t fulfill these industry needs," said Dahlan Iskan, who is also the former president director of PLN (Perusahaan Listrik Negara).

"Maybe in the next 10-20 years,(we) can fulfill the industries need," said Dahlan.

Source: Detik

30% Imported Goods to Indonesia are Illegal

noreply@blogger.com (mepb-assistant) — Tue, 03 Jan 2012 16:00:00 +0000

Economy Coordinating Minister, Hatta Rajasa, estimates that there are around 20-30% of illegally smuggled imported goods in Indonesia. This smuggling has been an issue every year but there seems to be no solution.

Illegal imported goods

"The most dangerous is that the smuggled goods continued to flow, approximately 20-30%," Hatta said at his office, Jalan Lapangan Benteng, Jakarta, Tuesday (20/12/2011).

Hatta stated that this needs to be watched out since the economy growth in China and India are declining, thus the products from both countries would be looking for new markets.

"I has alarmed and warned to pay attention, because the growth in China and India are declining, they will expand their exported goods. My concern is that don’t let our domestic goods become ‘foreign’ goods, but anyway, we can’t forbid them as well," he said.

Hatta is sure that Indonesian export will not have negative impact to our country, even though there is crisis. Because the export shares contribute only around 26 percent in GDP.

"It is not possible that export will cause crisis. My reason because the export shares 26 percent to GDP, unlike Singapore that reaches 200 percent and 90 percent in Malaysia, so the impact won’t be that big," he said.

Source: detik

Indonesian Minister Was Sentenced to Three Years Imprisonment

noreply@blogger.com (mepb-assistant) — Mon, 02 Jan 2012 16:00:00 +0000

Non-active Secretary to the Minister of Youth and Sport (Sesmenpora – Sekretaris Menteri Pemuda dan Olahraga), Wafid Muharram, adjudged guilty of corruption. Wafid was sentenced to three years imprisonment with additional fine of IDR 150 million that can be replaced with a three-month confinement.

Sesmenpora - Wisma Atlet

The sentence for Wafid was announced by the judges at the Corruption Court, Jakarta, Monday (12/19/2011). The head judge was Marsudin Nainggolan. Wafid was proven guilty for violating Article 5 Paragraph 2 in conjunction with Article 5 Paragraph 1 letter b of Law on Corruption Eradication.

As a state organizer, he was proven receiving a check valued IDR 3.2 billion from El Mohamad Idris, Marketing Manager of PT Duta Graha Indah (PT DGI), and Mindo Rosalina Manulang, Marketing Director of PT Anak Negeri. The provision was given related to PT DGI’s winning on athletes homestead project contractors.

"After receiving the check, he handed it to Poniran (the witness) to be kept as soon as Idris and Rosa left the office of the defendant (Wafid)," said a member of the judge panel, Sofialdi.

Meanwhile, Wafid pleaded that the IDR 3.2 billion check is a bailout loan. This plea is not accepted. From the information gathered from the Witnesses during the trial, the judges indicated that the giving of the check is related to the commitment fee.

"As a state organizer, the defendant is prohibited from receiving any compensation. The defendant should refuse the offer, anyway the defendant argued that it is for loan or bailout," said Sofialdi.

The verdict against Wafid is less than the public prosecutor demands, i.e. six years in prison. Few considerations for giving lighter punishment are the fact that he is a state servants or civil servants and he was polite during the trial.

However, Wafid was guilty for not supporting government programs in combatting the corruption.
Responding to the verdict, Wafid will consider whether or not he will appeal. "My lawyer and me will have more intensive discussion. So, no comment regarding it yet today," he said.

Source: Kompas

Pertamina Will Invest IDR 52.8 Trillion in 2012

noreply@blogger.com (mepb-assistant) — Sat, 31 Dec 2011 16:00:00 +0000

Vice President Corporate Communications of PT Pertamina (Persero), Mochamad Harun, said that Pertamina plans to invest IDR 52.8 trillion in 2012. Most of the investment funds would be used for upstream projects.

Pertamina

"For 2012, Pertamina plans to invest IDR 52.8 trillion, with the composition of 80 percent for upstream projects and 20 percent for downstream projects," said Aaron, in the Pertamina Office, Jakarta, Monday (19/12/2011). According to him, the projects that will be funded are part of the MP3EI project (Masterplan Economic Development Acceleration and Expansion of Indonesia or Masterplan Percepatan dan Perluasan Pembangunan Ekonomi Indonesia).

Regarding the funding sources, Pertamina would take a small fraction of 20 percent from the internal funding. The remaining 80 percent will be from external. "The External Funding will be from bonds, project financing and loan," added Aaron.

Related to the projects, Aaron said construction of the Regasification of Floating Storage Units in West Java is one of the major projects for next year. The project is targeted to operate in April 2012 with 3 million metric tons capacity per year or equivalent to 400 million cubic feet of natural gas per day.

Another project is building the refineries Residual Fluid Catalytic Cracking Cilacap. This will add the Cilacap capacity up to 411 thousand barrels per day. "Pertamina and ExxonMobil have also been carrying out the joint development of Cepu Blok facility. It is expected to start the operations in 2014 with a production capacity of 165 thousand barrels per day," said Aaron.

Source: Kompas

Agung Podomoro Launches Three Real-Estate Projects

noreply@blogger.com (mepb-assistant) — Fri, 30 Dec 2011 16:00:00 +0000

Property company, PT Agung Podomoro Land Ltd (APLN), launches the opening of three new projects in the end of year 2011, on Monday (12/19/2011). They are the Kuningan City Mall, Hotel Amaris Thamrin City, and Hotel POP Festival Citylink.

Agung Podomoro

These three new projects are expected to strengthen the APLN performance the next year.

Kuningan City Mall is a lifestyle mall in Jakarta CBD (Central Business District) area covering 55,000 square meters and consists of 6 floors. With the back to nature concept, it combines the elements of nature, earth, water, and light, which offers the visitors new experiences different from other existing malls.

According to APLN Investor Relations Officer, Wibisono, the current mall occupancy rate has reached 90 percent. Some confirmed tenants are Lotte Mart, Best Denki, Cinema XXI, Pure Jatomi Health & Fitness, ACE Hardware, Primer Group and PT Mitra Adi Perkasa.

Meanwhile, located at Thamrin City Shopping Distric, Jakarta, Hotel Amaris Thamrin City will be managed and operated by the network operator of Santika hotel groups. The hotel is only a few hundred meters from the Bundaran Hotel Indonesia (traffic circle). It is also close to Jl. Thamrin and Jl. Sudirman which are the business and commercial center in Jakarta. Amaris Hotel has 134 rooms and 2 meeting rooms with the capacity of 30 people, targeting the entrepreneurs and businessmen.

POP Festival Citylink Hotel is located in the Festival of Citilink, Bandung. POP Hotel provides 175 rooms. It is claimed to be the only budget hotel (in Bandung), POP Hotel will be a destination hotel for tourists.

Source: Kompas

Fitch Also Raises The Rating of Eight Banks

noreply@blogger.com (mepb-assistant) — Thu, 29 Dec 2011 16:00:00 +0000

Fitch Ratings also raised the long-term credit rating of eight banks following the increase in the Government of Indonesia's debt rating from BB + to BBB-. The increase is in the debt securities denominated in rupiah.

Fitch Ratings

The eight banks are PT Bank Mandiri Tbk (BMRI), PT Bank Central Asia Tbk (BBCA), PT Bank Rakyat Indonesia Tbk (BBRI), PT Bank BNI Tbk (BBNI), Lembaga Pembiayaan Ekspor-Impor Indonesia (LPEI), PT Bank OCBC NISP Tbk (NISP), PT Bank International Indonesia Tbk (BNII), and PT Bank CIMB Niaga Tbk (BNGA). The overall outlook for the bank declared stable.

Rating of three banks, BMRI, BBRI, and BBNI, as well as one institution, namely LPEI, increase from BB + to BBB-. "The rating reflects the high probability and the strong support from the government as the controlling shareholder. Banks have a significant impact on the economy of Indonesia," said Julita Wikana, Director of Fitch's Financial Institutions Team.

The ranking of BNGA, NISP, and BNII increases from BB + to BBB. This rating reflects the strong support of the foreign holding company, especially during the time when Indonesia entered the investment grade position. The increase in ratings was also supported by the commitment of the holding company to put Southeast Asia as a core part of their strategy. Fitch calculates, their three exposures in Government Securities (SUN- Surat Utang Negara) owned by Indonesia declined from year to year, lower than the previous ownership of the three state-owned banks mentioned above.

While the upgrade of BCA, was assessed from its viability assessment from the track record and strength of credit distribution. Fitch's affirmation of the viability of the other banks reflects their stable credit profiles despite the global uncertainty becomes a threat of the moderate domestic economic outlook.

Source: Kompas

Indonesia Oil Reserves Went Down Drastically

noreply@blogger.com (mepb-assistant) — Wed, 28 Dec 2011 16:00:00 +0000

Executive Agency for Upstream Oil and Gas (BP Migas – Badan Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi) noted that there is a reduction in oil and gas reserves. The most drastic decline is in oil reserves which occurred on January 1, 2011 reached 4.039 billion barrels. While the estimated proved reserves in 2012, reaches 3.925 billion barrels.

BP Migas

Control Officer of BP Migas Operation, Rudi Rubiandini, say, the proven natural gas reserves is also experienced a downward trend but not as drastic as oil. In early January 2011, the proved reserves of natural gas reached 104.7 trillion standard cubic feet, whereas in January 2012 the estimate is 104.5 trillion cubic feet.

"Additional reserves found in 2011 were smaller compared to its production," Rudi said in a press release published in Jakarta, Sunday (18/12).

Throughout 2011, BP Migas noted an additional of 215.5 million barrels of oil and 2.86 trillion cubic feet of natural gas. But the realization in production is much higher, or about 329.9 billion barrels of oil and 3.08 trillion cubic feet of gas.

Therefore, he asserted that the increase in exploration must be carried out. BP Migas - as the regulator of government upstream activities of the oil and gas - encourages contractors with cooperation contracts (KKS – Kontrak Kerja Sama), prioritize the exploration of unused land.

He explained that they would conduct a review of the exploration potential on idle land throughout Indonesia. "Moreover, in order to make the marginal and frontier area exploration activity more attractive, BP MIGAS would submit incentive criteria plans," he added.

The implementation of certain commitments must be implemented in exploration area. " There must be more selective screening tests in the selection of winners of the working area contractors, in order to get a contractor that is capable financially, technically, and has capable human resources," said Rudi.

Source: Analisa

Foreign Ownership in Government Securities Reached IDR 223.86 trillion

noreply@blogger.com (mepb-assistant) — Tue, 27 Dec 2011 16:00:00 +0000

Foreign ownership in state securities or government securities (SBN – Surat Berharga Negara) reached IDR 223.86 trillion on December 15, 2011 while on previous day was IDR 224.11 trillion.

SBN in Indonesia

This data was quoted from the Directorate General of Debt Management Ministry of Finance, this weekend. The mutual fund industry has SBN worth IDR 47.03 trillion on December 15, 2011 compared to the beginning of December 2011 at IDR 46.94 trillion. The insurance industry has SBN valued at IDR 93.04 trillion as of December 15, 2011.

Meanwhile, the pension funds have SBN valued at IDR 34.53 trillion as of December 15, 2011. Securities firms have IDR 20 billion worth of government securities and others amounting up to IDR 52.86 trillion. The banking industry still has the highest record on the ownership of government securities valued at IDR 283.16 trillion as of December 15, 2011. Total tradable government securities (SBN) valued at IDR 723.76 trillion.

Source: Analisa

Indonesian Banks has 12% Credit Interest Rate, while Malaysia has only 6%

noreply@blogger.com (mepb-assistant) — Mon, 26 Dec 2011 16:00:00 +0000

The inefficiency in Indonesia Banking has resulted in expensive operational costs and higher interest rates. Among ASEAN countries, Indonesia's banking loan interest is very high.

Banks in Indonesia

According to the data from Bank of Indonesia (BI) quoted by detikFinance, Saturday (17/12), the mortgage interest rate of Indonesia banks has an average of 12.4%. This is very high compared to the credit interest in Malaysia (6.54%).

Even Thailand, the Philippines, and Korea have very low interest rate credit banking, i.e. respectively 7.25%, 5.71% and 5.69%.

Bank Indonesia noted that the highest differences between the central bank's benchmark interest rate and the real mortgage interest rate happened in Indonesia. Banks in Indonesia have much profit from the large difference between savings interest rate with credit interest rate. The savings interest rate in Indonesia is 6.39%, while the credit interest rates reached 12.4%.

As of the Bank of Indonesia data, the banking industry in Indonesia is lavish and inefficient resulted in high-interest credit. The ratio of operating expenses compared to operating income is high at 86.44% in October, while the average in ASEAN banks is only 40-60%.

The banking industry in Indonesia is also still "lazy" to give credit and prefer to invest in securities as it is safer.

Data shown that the ratio of bank credit to GDP in Indonesia is still low (just 29.1%). While in Malaysia it reached 114.9%, 131.1% in China, 116.7% in Thailand, 102.1% in Singapore and 100.8% in Korea.

Source: Analisa

10 Banks with The Lowest Credit Interest Rate

noreply@blogger.com (mepb-assistant) — Sun, 25 Dec 2011 16:00:00 +0000

Top 10 Banks in Indonesia

This information is gathered from the large banks in Indonesia websites. These banks have the largest assets with various interest credit rate or in Indonesian, Suku Bunga Dasar Kredit (SBKD). BCA, Bank Central Asia, has the lowest interest rate with the average interest rate of 8.91%.

BCA is on the top position because it has lower than 10% interest rate in three segments of credit which are Corporate Credit, Housing Credit or Home Loan or in Indonesian, Kredit Kepemilikan Rumah (KPR) and Non-Housing Credit.

Below is the list of the top 10 banks starting with the lowest interest rate banks:

1. BCA (Bank Central Asia)

Average interest rate: 8.91%
Corporate Credit (CC): 9.0%
Retail Credit (RC): 10.50%
House Loan (HL): 7.50%
Non-Housing Credit (NHC): 8.64%

2. BII (Bank International Indonesia)

Average interest rate: 10.76%
Corporate Credit (CC): 10.59%
Retail Credit (RC): 11.43%
House Loan (HL): 10.67%
Non-Housing Credit (NHC): 10.37%

3. BTN (Bank Tabungan Negara)

Average interest rate: 10.92%
Corporate Credit (CC): 10.56%
Retail Credit (RC): 10.68%
House Loan (HL): 11.08%
Non-Housing Credit (NHC): 11.38%

4. Permata Bank

Average interest rate: 11.06%
Corporate Credit (CC): 10.75%
Retail Credit (RC): 11.0%
House Loan (HL): 12.0%
Non-Housing Credit (NHC): 10.50%

5. Panin Bank

Average interest rate: 11.32%
Corporate Credit (CC): 11.25%
Retail Credit (RC): 11.25%
House Loan (HL): 11.75%
Non-Housing Credit (NHC): 11.75%

6. CIMB Niaga Bank

Average interest rate: 11.35%
Corporate Credit (CC): 11.10%
Retail Credit (RC): 11.50%
House Loan (HL): 11.30%
Non-Housing Credit (NHC): 11.50%

7. Mandiri Bank

Average interest rate: 11.68%
Corporate Credit (CC): 10.50%
Retail Credit (RC): 12.50%
House Loan (HL): 11.25%
Non-Housing Credit (NHC): 12.50%

8. BRI (Bank Rakyat Indonesia)

Average interest rate: 11.76%
Corporate Credit (CC): 10.22%
Retail Credit (RC): 12.86%
House Loan (HL): 11.07%
Non-Housing Credit (NHC): 12.92%

9. Danamon Bank

Average interest rate: 12.1%
Corporate Credit (CC): 11.0%
Retail Credit (RC): 13.0%
House Loan (HL): 12.25%
Non-Housing Credit (NHC): 12.49%

10. BNI (Bank Negara Indonesia)

Average interest rate: 12.17%
Corporate Credit (CC): 10.75%
Retail Credit (RC): 13.0%
House Loan (HL): 11.80%
Non-Housing Credit (NHC): 13.15%

Source: Analisa
Updated on: December 10, 2011

Indonesian President: First Lady Will Not Run For 2014 Election

noreply@blogger.com (mepb-assistant) — Sat, 24 Dec 2011 16:00:00 +0000

Chairman of the Board of Trustees of the Democratic Party, Susilo Bambang Yudhoyono, who is also the President of Indonesia, asserted that the First Lady, Ani Yudhoyono, would not run for the 2014 Presidential Election. It was stated repeatedly in public in order to respond the speculation that the First Lady, Ani Yudhoyono, will run for the 2014 election.

President and First Lady of Indonesia

"If there is question whether Mrs. Ani Yudhoyono will move forward or whether the Democratic Party will propose Mrs. Ani, then the answer is 100 percent there was no such intension and plan. Both First Lady or myself have repeatedly express it to the people," Yudhoyono said during briefing and workshop for the Democratic Party candidates at the Hall C Arena Pekan Raya Jakarta, Thursday (15/12/2011).

Also attending the event, are the ranks of members of the board of supervisors, board of honor, the regulatory commission, the deputy chairman and deputy secretary general, leaders and members of the Democratic Party faction in Parliament, the executive director, the management ranks of the Democratic Party and the Democratic leaders throughout Indonesia.

During that occasion, Yudhoyono also emphasized that the Democratic Party have not determined any presidential candidate or vice presidential candidate for the 2014 elections. "Being a president really needs to get strong support from the people and the blessing of God, not merely only support from the party," he said.

"There is also question whether President Susilo Bambang Yudhoyono as an outgoing leader or a president whose presidential term will end soon, will support any candidate? That is not known yet. I was also asked whether there should be new 'face' in the 2014 presidential candidate? In my opinion, one of the values and spirit of democracy is equality of opportunity," said Yudhoyono.

Source: Kompas