By Andi Abdussalam
Jakarta, Sept 1 (ANTARA) - Prices of basic necessaries in various cities in Indonesia such as in Java, Sumatra, Kalimantan and Sulawesi are moving upward in the face of the fasting month which starts on Monday (Sept 1).
In the meantime, the government has guaranteed that stocks of various essential commodities such as rice, eggs, beef and chickens are enough to meet the need during this year's religious festivities of Idul Fitri, Idul Adha, Christmas, and New Year.
"We previously doubted the availability of enough stocks but after we checked it in the market, we found that the stocks are enough," Agriculture Minister Anton Apriantono said over the weekend.
The minister said in order to ensure the availability of basic necessaries, he collected information from regional governments, met with associations food retailers and went to the market to check stocks.
The results of the Ministry of Agriculture's field inspections showed that food stocks in the face of the religious holidays in 2009 were enough.
Rice stocks reached 35,484.8 thousand tons exceeding the need for 31,799 tons, sugar 6,146.4 thousand tons surpassing the need for 4,842.3 thousand tons, cooking oil 6,216.3 thousand tons well over the need for 3,990.6 thousand tons and peanut 760 thousand tons slightly above the need for 754.1 thousand tons. Chicken meat, beef and egg stocks are also enough.
The government is able to guarantee enough stocks thanks to the country's increasing food production over the past several years.
Head of national food resilience affairs at the agriculture ministry Dr Achmad Suryana said the average annual production increase in the last four years for rice was 2.6 percent, corn 7.6 percent, soybean 1.4 percent, cassava 1.7 percent, palm oil 18.4 percent, sugar 21.9 percent, beef 6.5 percent, chicken 17.4 percent, chicken eggs 9.2 percent and fish 6.7 percent.
He also predicted that food production in 2008 would be higher than in 2007. The outputs of various foods in 2008 would be paddy 59.9 million tons of dried milled rice, corn 14.9 million tons, sugar 4.5 million tons, crude palm oil (CPO) 19.8 million tons and chicken 1.5 million tons.
While their stocks are enough, basic commodities are having prices move upward in Java, Sumatra, Kalimantan and South Sulawesi as the country's Muslims begin the fasting month of Ramadan.
"Prices of essential commodities are sky-rocketing due to the high demand for the goods," Rasman (45), a trader in the Rangkasbitung market, Lebak district, Banten, said.
Prices of a number of commodities in Lebak are increasing in the face of the fasting month. The price of tomato for example has increased from Rp2000 a kg to Rp4000, pea nut from Rp12,000 to Rp13,000 per kg, `kemiri' (fruit of aleurites moluccana tree) from Rp15,000 to Rp18,000 per kg and rice from Rp5,000 to Rp5,500 a kg.
In East Java, particularly in the traditional market of Sidoarjo district, the price on Saturday of chicken eggs increased from Rp12,000 per kg to Rp14,500, chicken meat from Rp20,000 per kg to Rp22,000, coconut from Rp4,000 each to Rp8,000, rice from Rp5,500 per kg to Rp5,700 and LPG in 12-kg cylinders from Rp63,000 to Rp75,000.
"The price of chicken meat has been increasing since two weeks ago. It almost increases every day," Juariyah, a trader in the Genteng traditional market in Surabaya said.
Prices on other commodities such as rice, chicken eggs, union, garlic, potato and beef are also escalating, she said.
In North Sumatra, traders also confirmed the increase in the prices of basic necessaries. They said prices had over the past two days increased by about 12 percent.
"Prices of slaughtered chickens increased from Rp22,000 each to Rp25,000 and beef from Rp60,000 per kg to Rp70,000," Mahdi a trader in a Medan Market, said on Saturday.
The same upward trend in the prices of basic commodities are also taking place in Samarinda, East Kalimantan. Essential commodity prices in the province increased by about 10 to 15 percent.
Laksmi Edmond of the local trade and industry office said the price increase was still relatively reasonable. "We still tolerate an increase of about 20 percent provided that we still have stocks," she added.
In the meantime, the prices of basic commodities in Makassar, South Sulawesi, have been increasing over the past two days. The price of chickens as monitored in the Toddopuli and Terong markets increased from Rp30,000 per head to Rp35,000, beef from Rp40,000 to Rp45,000-Rp50,000, chicken eggs from Rp14,000 per kg to Rp15,000, cooking oil from Rp8,000 per liter to Rp9,500 and palm sugar from Rp6,000 per kg to Rp8,000.
In anticipation of the price increases of various basic commodities in the face of the fasting month and other religious festivities, the Ministry of Trade urged regional administrations to organize cheap markets in their respective province.
The Ministry of Trade has established cooperation with the Indonesian Retailers Association (Aprindo) as well as sugar and cooking oil producers to help the organization of the cheap markets with regional governments.
"We have instructed regional governments to actively launch cheap markets. We hope that they would start organizing cheap commodity markets at the end of August," Gunaryo, director for market development and distribution affairs of the Directorate General for Domestic Trade of the Trade Ministry, said last week (T.A014/A/HNG/A/E002) 01-09-2008 00:32:10
Minggu, 31 Agustus 2008
Kamis, 28 Agustus 2008
MUSLIM SCHOLARS PLAN TO DECLARE SMOKING UNLAWFUL
By Andi Abdussalam
Jakarta, Aug 28 (ANTARA) - Smoking in the history of mankind is a habit that has existed since time immemorial. Since then, pros and cons have emerged not only because smoking is harmful to human health and disturbs non-smokers but also because it is commercially profitable to many parties. The Indonesian Ulemas Council (MUI) is planning to declare smoking is unlawful based on the Islamic law.
Despite the pros and cons, smoking has spurred people to develop its commercial aspect, the result of which shows tremendous growth in cigarettes industries in every part of the world that provides prosperity.
In the early stage, no one could really enjoy the taste of a cigarette. But why do people try it again and again until they are addicted?
"Smocking is a symbol of manhood and a means of social intercourse," said 40-year old Hasan who has tried to stop smoking several times but failed.
Others say that smoking is good for killing time, reducing tension, making friends or even for seeking inspiration, for writers for example.
"I began smoking at the age of 15 when I mixed with peers among whom cigarette consumption was a normal thing. But I have tried, to no avail, to stop smoking now because it is not good for health," Hasan said.
Ovide Pomerleau of the University of Michigan's Medical School, whose research appears in the journal Addiction said smoking even one cigarette is a bad idea. "It's a trap," he was quoted as saying by the Xinhuanet recently.
"What they don't realize is if they have this kind of genetic make-up, they are on their way to dependency," he said, and that raises their risk for lung cancer. He was referring to a gene type that not only increases the addiction risk, but also has been implicated in the development of lung cancer.
Teams of scientists reported earlier this year that smokers who had certain changes in three nicotine receptor genes - which control entry of nicotine into brain cells - were more likely to develop lung cancer than other smokers.
Campaigns on the negative effects of smoking such as the growth of lung cancer have been launched since a long time ago.
In the 1980s, physicians of a Royal College in Britain found that 90 percent of deaths from lung cancer were attributed to smoking.
At that time the Duke of Gloucester, Patron of Action on Smoking and Health told the House of Lords in a debate that of 1,000 young people who smoked a pack of cigarettes a day, 250 would die prematurely from smoking induced diseases.
If fifty percent of Indonesia's 228 million people are young smokers, about 28.5 million out of them would, if the assumption above is true, become victims of premature deaths
This is because the human body is not designed to absorb chemicals inhaled through the respiratory system.
Besides, smoke that belches out of smokers' nostrils could be inhaled by non-smokers, thus disturbing them and turning them into 'passive' smokers, threatening their health. Thus, smoking disturbs the public.
That's why, the Jakarta city administration under then-Governor Sutiyoso last year banned smoking in public places in the capital city. However, the ruling seems to be ineffective and is not being enforced consistently under tight supervision.
People still smoke freely in public places such as on public buses, at railway stations, bus terminals and in government offices.
A public controversy on whether or not smoking should be banned arose recently following a plan by the Indonesian Ulema Council (MUI) to issue a `fatwa' (edict) that smoking is prohibited under Islamic law.
While tobacco and cigarette producers raised their objections, Health Minister Siti Fadilah Supari supported the MUI's plan to declare smoking haram (forbidden for Muslims to do or consume).
"I am glad to hear about the MUI plan, and I support it," Supari said after a visit to a relative's grave at the Giriloyo public cemetery in Magelang Saturday.
Yet, Religious Affairs Minister Maftuh Basyuni doubted the effectiveness of a ban on smoking the MUI was planning to issue.
"It is better to prioritize efforts to promote public awareness about the dangers of nicotine because many MUI fatwas have been issued before but remained unimplemented," the minister said on Monday.
To tobacconists and cigarette makers, a big number of smokers in a country means a big potential market. Indonesia which has a population of about 228 million is a potential market for cigarette industries.
If each of fifty percent of the country's 228 million smokes a pack of cigarettes a day, cigarette industries would be able to put 114 million packs of cigarettes on the market a day.
Reducing the number of cigarette consumers would threaten tobacco/cigarette producers and millions of people whose livelihood depends on the industries.
Besides, the government should also downsize its revenue target from cigarette taxes which it set this year at Rp46.5 trillion.
So far, cigarette industries have continued to grow in the country. Indonesia's cigarette production in 2005 was recorded at 221.1 billion pieces. It rose to 240 billion pieces in 2006 and in 2009 it is planned to increase to 260 billion pieces.
The increase in cigarette production also raised state income from cigarette taxes which in 2006 stood at Rp37 trillion and in 2007 increased to Rp42 trillion.
This year the government's tax target from cigarette excise tapes is set at Rp46.5 trillion. (T.A014/A/HAJM/21:20/a014) 28-08-2008 21:25:33
Jakarta, Aug 28 (ANTARA) - Smoking in the history of mankind is a habit that has existed since time immemorial. Since then, pros and cons have emerged not only because smoking is harmful to human health and disturbs non-smokers but also because it is commercially profitable to many parties. The Indonesian Ulemas Council (MUI) is planning to declare smoking is unlawful based on the Islamic law.
Despite the pros and cons, smoking has spurred people to develop its commercial aspect, the result of which shows tremendous growth in cigarettes industries in every part of the world that provides prosperity.
In the early stage, no one could really enjoy the taste of a cigarette. But why do people try it again and again until they are addicted?
"Smocking is a symbol of manhood and a means of social intercourse," said 40-year old Hasan who has tried to stop smoking several times but failed.
Others say that smoking is good for killing time, reducing tension, making friends or even for seeking inspiration, for writers for example.
"I began smoking at the age of 15 when I mixed with peers among whom cigarette consumption was a normal thing. But I have tried, to no avail, to stop smoking now because it is not good for health," Hasan said.
Ovide Pomerleau of the University of Michigan's Medical School, whose research appears in the journal Addiction said smoking even one cigarette is a bad idea. "It's a trap," he was quoted as saying by the Xinhuanet recently.
"What they don't realize is if they have this kind of genetic make-up, they are on their way to dependency," he said, and that raises their risk for lung cancer. He was referring to a gene type that not only increases the addiction risk, but also has been implicated in the development of lung cancer.
Teams of scientists reported earlier this year that smokers who had certain changes in three nicotine receptor genes - which control entry of nicotine into brain cells - were more likely to develop lung cancer than other smokers.
Campaigns on the negative effects of smoking such as the growth of lung cancer have been launched since a long time ago.
In the 1980s, physicians of a Royal College in Britain found that 90 percent of deaths from lung cancer were attributed to smoking.
At that time the Duke of Gloucester, Patron of Action on Smoking and Health told the House of Lords in a debate that of 1,000 young people who smoked a pack of cigarettes a day, 250 would die prematurely from smoking induced diseases.
If fifty percent of Indonesia's 228 million people are young smokers, about 28.5 million out of them would, if the assumption above is true, become victims of premature deaths
This is because the human body is not designed to absorb chemicals inhaled through the respiratory system.
Besides, smoke that belches out of smokers' nostrils could be inhaled by non-smokers, thus disturbing them and turning them into 'passive' smokers, threatening their health. Thus, smoking disturbs the public.
That's why, the Jakarta city administration under then-Governor Sutiyoso last year banned smoking in public places in the capital city. However, the ruling seems to be ineffective and is not being enforced consistently under tight supervision.
People still smoke freely in public places such as on public buses, at railway stations, bus terminals and in government offices.
A public controversy on whether or not smoking should be banned arose recently following a plan by the Indonesian Ulema Council (MUI) to issue a `fatwa' (edict) that smoking is prohibited under Islamic law.
While tobacco and cigarette producers raised their objections, Health Minister Siti Fadilah Supari supported the MUI's plan to declare smoking haram (forbidden for Muslims to do or consume).
"I am glad to hear about the MUI plan, and I support it," Supari said after a visit to a relative's grave at the Giriloyo public cemetery in Magelang Saturday.
Yet, Religious Affairs Minister Maftuh Basyuni doubted the effectiveness of a ban on smoking the MUI was planning to issue.
"It is better to prioritize efforts to promote public awareness about the dangers of nicotine because many MUI fatwas have been issued before but remained unimplemented," the minister said on Monday.
To tobacconists and cigarette makers, a big number of smokers in a country means a big potential market. Indonesia which has a population of about 228 million is a potential market for cigarette industries.
If each of fifty percent of the country's 228 million smokes a pack of cigarettes a day, cigarette industries would be able to put 114 million packs of cigarettes on the market a day.
Reducing the number of cigarette consumers would threaten tobacco/cigarette producers and millions of people whose livelihood depends on the industries.
Besides, the government should also downsize its revenue target from cigarette taxes which it set this year at Rp46.5 trillion.
So far, cigarette industries have continued to grow in the country. Indonesia's cigarette production in 2005 was recorded at 221.1 billion pieces. It rose to 240 billion pieces in 2006 and in 2009 it is planned to increase to 260 billion pieces.
The increase in cigarette production also raised state income from cigarette taxes which in 2006 stood at Rp37 trillion and in 2007 increased to Rp42 trillion.
This year the government's tax target from cigarette excise tapes is set at Rp46.5 trillion. (T.A014/A/HAJM/21:20/a014) 28-08-2008 21:25:33
Selasa, 26 Agustus 2008
AUDITORS TO INVESTIGATE RI-CHINA LNG CONTRACT
By Andi Abdussalam
Jakarta, Aug 16 (ANTARA) - As liquefied natural gas (LNG) prices are soaring in domestic and global markets to about US$20 per mmbtu, Indonesian state auditors are planning to investigate a seven-year old LNG contract with China where the price was set at US$3.3 per mmbtu.
Jakarta, Aug 16 (ANTARA) - As liquefied natural gas (LNG) prices are soaring in domestic and global markets to about US$20 per mmbtu, Indonesian state auditors are planning to investigate a seven-year old LNG contract with China where the price was set at US$3.3 per mmbtu.
Auditors from the State Audit Board (BPK) will begin the investigation next month on the Tangguh gas field contract which was signed for a 20-year period in 2002.
"We will not cover up the results of our audit. We will make public what we have found in the investigation," BPK Deputy Chairman Udju Juhaeri said.
Oil and gas observers were of the view that the contract greatly harmed the interest of Indonesia.
"The contract on export of LNG from the Tangguh field to Fujian province in China greatly harms Indonesia's interests," Vice President Jusuf Kalla said last week.
Under the contract, LNG from the Tangguh field was priced at US$3.3 per mmbtu, well below the international price of US$20 per mmbtu, he said. Therefore, he added, the Indonesian government wanted to renegotiate the contract with the Chinese authorities.
He said it was Indonesia that proposed the contract be linked to global crude prices. And the proposal was acceptable to all countries so that they now used the formula.
"But the contract on the export of LNG from the Tangguh field to Fujian province deviates from the formula," he said.
Therefore, the vice president himself expressed hope that the House of Representatives (DPR) would investigate the Tangguh LNG export contract with China which he believed was the worst contract of it kind so far.
"So, the DPR should also investigate (through its right of inquiry) the Tangguh LNG export contract because it greatly disadvantaged Indonesia. This is the worst contract to date," Kalla said during a visit in Beijing on Sunday.
He said LNG exports from the Tangguh field in Papua to China's Fujian province had caused a great loss to Indonesia.
The BPK investigators are expected to cooperate with an inquiry committee of the DPR in auditing the contract. Several months earlier, the DPR had set up a fuel oil price inquiry committee tasked to investigate the government policy in raising fuel oil prices in May.
"We are preparing materials for a meeting with the DPR inquiry committee," BPK chairman Anwar Nasution said referring to his agency's plan to audit the government's polices in the oil sector.
Mahfudz Siddiq of the Prosperous Justice Party (PKS) said he supported the idea if the DPR's inquiry committee was involved in the auditing of the Tangguh contract.
"The energy crisis has taken place for eight years so that investigation should not be carried on the present government only but also on officials of the previous government," he said.
He said that the inquiry committee could ask explanations from former president Megawati Soekarnoputri and her officials.
"But there is no need to form a separate inquiry committee for that purpose. It is enough for the DPR to use its fuel price hike inquiry committee," he said.
BPK chairman Anwar Nasution said the BPK would be prepared to cooperate with and submit the auditing results of the oil/gas sector, and the Tangguh field gas sales contract to the House of Representatives.
"Everything is being prepared, and I have especially come to the House. The auditing of Tangguh, will be completed some time in the future," He said.
In the meantime, Energy and Mineral Resources Minister Purnomo Yusgiantoro said on Tuesday he was ready to accommodate the investigation into the LNG sales contract with China.
"I will say, go ahead and investigate it because the contract was concluded at that time transparently," the minister said after opening a business forum themed "Reinventing the Oil And Gas Sector: Responding to the National Energy Policy," here on Tuesday.
He said the oil sector in Indonesia, particularly the Tangguh LNG contract, had come under pressures with political nuances.
"The oil/gas sector is colored by pressures with high political nuances so that it is hard for it to develop," the minister said.
He said he had examined the contract chronology but had not found any problem in it because it was all done transparently.
Yusgiantoro said the price in the contract was based on the Guangdong price which at that time was set based on the result of a tender among six participants.
Referring to the low price while at present the world crude price is moving upward, the minister said nobody at the time could predict that the world crude price would soar to over US$100 per barrel.
"At that time, the cost with regard to the Tangguh contract was lower. The logic is that if it was not profitable, no one would sign a contract," he added. (T.A014/A/HAJM/A/S012) 26-08-2008 21:31:38
Minggu, 24 Agustus 2008
INDONESIAN SUGAR PRODUCERS COMPLAIN OF SUGAR IMPORTS
By Andi Abdussalam
Jakarta, Aug 24 (ANTARA) - Sugar producers in Indonesia are complaining about refined sugar available on local markets, as the commodity is normally imported for special consumption by industries.
"The entry into the country's retail market of refined sugar would discourage domestic sugar cane growers in increasing the volume of their production," Gatot Kussetiady, administrator of Central Java's Sragi sugar mill, said on Friday.
The government has allowed the importation of refined sugar in an effort to meet the need of raw sugar for industries but sugar producers at home said the imported sugar had also entered retail markets.
As sugar cane growers are discouraged, pessimism also arises about the country's ability to meet its self-sufficiency production target at 3.6 million tons this year.
"I think Indonesia is unable to meet its self-sufficiency target because the country's sugar mills' production is estimated at only 3.1 million a year," Kussetiady said.
On the other hand, failure to meet the production target would give a chance to more sugar imports.
According to the Indonesian Sugar Experts Association (Ikagi), the government has a plan to import 1.8 million tons of sugar and 600,000 tons of refined sugar in 2008. Indonesia's sugar production stood at 2.1 million tons last year, well below its sugar consumption estimated at 3 million tons.
"The price of local sugar will undoubtedly come under pressures if the plan to import raw and refined sugar is implemented," Ikagi Deputy Secretary General Adig Suwandi said recently.
That's why, Kussetiyadi expressed hope that the government would change its sugar trade regulation so that sugar price would also increase.
"The sugar trade regulation in force now does not benefit sugar growers because sugar price could not be increased. We hope the government would change the regulation so that it would be similar to that on rice which allows the price to increase every year," he said.
According to H Slamet, chairman of the Indonesian Sugar Cane Farmers (APTRI), Pekalongan branch, the sugar price at factory level was only Rp5,000 per kg, which was not competitive with the costs the farmers would spent.
"Ideally, the government should have fixed the price at Rp6,000 per kg," he added.
Besides price increase, sugar producers also hoped that refined sugar imports should not spill over into retail markets.
Virtually, the Trade Ministry has issued Trade Minister's Letter No.357 / M-DAG/4/2008 dated April 2, 2008 on Distribution of Refined Sugar in the Regions which forbids refined sugar distributors to sell their sugar to retailers.
Despite the trade minister's regulation, sugar producers at home claimed that refined sugar imports were sold to retail market.
In response to the sugar producers' complaint, Minister of Agriculture Anton Apriyantono asked the Ministry of Trade to withdraw refined sugar from the market to protect sugarcane growers in the country.
He said that refined sugar, used in the food and beverage industry may not be sold to retail markets for consumption.
The agriculture minister, who is also chairman of the Indonesian Sugar Council (DGI) said he was ready to prepare a policy on the matter, for the settlement of the problem of refined sugar sold on the market.
Earlier, the Association of Sugar Experts said that up till now refined sugar for the food and beverages industry is still available in the market as consumption sugar, and therefore disrupted the availability of local sugar.
Adig Suwandi said that refined sugar is widely available in suparmarkets and traditional markets offered in one or two kilograms packing.
"It is not clear where the refined sugar came from, but the commodity is both locally produced and imported," he said.
As a result of the rampant circulation of refined sugar, the market absorption of local sugar has been declining, he said.
Therefore members of the Ikagi have urged the government to immediately withdraw refined sugar from the free market, and audit the origins of the commodity.
Against Kussetiyadi's pessimistic estimate, Suwandi adversely saw an upward trend in the country's sugar production.
He said that Indonesia's sugar production in the 2008 milling season was estimated at 2.72 million tons, which is higher than the production during the milling season in 2007.
"The production estimate is based on the acreage of sugar cane plantations which reach 445,113 hectares and milled sugar cane 34.26 million tons," Suwandi said.
"If that estimate comes true, Indonesia whose sugar consumption reaches 2.7 million tons, will be self-sufficient in the commodity, particularly sugar for direct consumption," he said.
A national workshop on the 2008 milling season's mid-term evaluation organized by the Indonesian Sugar Association (AGI) in Yogyakarta on August 11-12, 2008 revealed that the production of the 58 sugar mills up to July 31, 2008 was recorded at 1.23 million tons.
Of the total, 673,441 tons were produced by 46 sugar mills in Java and 559,468 tons by 12 sugar factories outside the island.
The average production of the 58 sugar mills stood at 6.27 tons of crystal sugar per hectare with a sucrose content of 8.02 percent.
As a comparison, the milling production in the same period in 2007 was lower than that in 2008, reaching only 959,913 tons.
Suwandi said that overall there had been an increase in the sugar production of almost all sugar factories in Indonesia.
"There is an interesting phenomenon in this year's milling season such as the increase in sugar cane weight and productivity experienced by among others state-owned plantation companies (PTPN) II, X,XI,XIV, PT PG Tjandi, and PT Madu Baru," he said.
He said that although sugar production had been increasing, sugar milling and other sugar businesses were also worried about the declining prices. (T.A014/A/HNG/B003) 24-08-2008 22:40:11
Jakarta, Aug 24 (ANTARA) - Sugar producers in Indonesia are complaining about refined sugar available on local markets, as the commodity is normally imported for special consumption by industries.
"The entry into the country's retail market of refined sugar would discourage domestic sugar cane growers in increasing the volume of their production," Gatot Kussetiady, administrator of Central Java's Sragi sugar mill, said on Friday.
The government has allowed the importation of refined sugar in an effort to meet the need of raw sugar for industries but sugar producers at home said the imported sugar had also entered retail markets.
As sugar cane growers are discouraged, pessimism also arises about the country's ability to meet its self-sufficiency production target at 3.6 million tons this year.
"I think Indonesia is unable to meet its self-sufficiency target because the country's sugar mills' production is estimated at only 3.1 million a year," Kussetiady said.
On the other hand, failure to meet the production target would give a chance to more sugar imports.
According to the Indonesian Sugar Experts Association (Ikagi), the government has a plan to import 1.8 million tons of sugar and 600,000 tons of refined sugar in 2008. Indonesia's sugar production stood at 2.1 million tons last year, well below its sugar consumption estimated at 3 million tons.
"The price of local sugar will undoubtedly come under pressures if the plan to import raw and refined sugar is implemented," Ikagi Deputy Secretary General Adig Suwandi said recently.
That's why, Kussetiyadi expressed hope that the government would change its sugar trade regulation so that sugar price would also increase.
"The sugar trade regulation in force now does not benefit sugar growers because sugar price could not be increased. We hope the government would change the regulation so that it would be similar to that on rice which allows the price to increase every year," he said.
According to H Slamet, chairman of the Indonesian Sugar Cane Farmers (APTRI), Pekalongan branch, the sugar price at factory level was only Rp5,000 per kg, which was not competitive with the costs the farmers would spent.
"Ideally, the government should have fixed the price at Rp6,000 per kg," he added.
Besides price increase, sugar producers also hoped that refined sugar imports should not spill over into retail markets.
Virtually, the Trade Ministry has issued Trade Minister's Letter No.357 / M-DAG/4/2008 dated April 2, 2008 on Distribution of Refined Sugar in the Regions which forbids refined sugar distributors to sell their sugar to retailers.
Despite the trade minister's regulation, sugar producers at home claimed that refined sugar imports were sold to retail market.
In response to the sugar producers' complaint, Minister of Agriculture Anton Apriyantono asked the Ministry of Trade to withdraw refined sugar from the market to protect sugarcane growers in the country.
He said that refined sugar, used in the food and beverage industry may not be sold to retail markets for consumption.
The agriculture minister, who is also chairman of the Indonesian Sugar Council (DGI) said he was ready to prepare a policy on the matter, for the settlement of the problem of refined sugar sold on the market.
Earlier, the Association of Sugar Experts said that up till now refined sugar for the food and beverages industry is still available in the market as consumption sugar, and therefore disrupted the availability of local sugar.
Adig Suwandi said that refined sugar is widely available in suparmarkets and traditional markets offered in one or two kilograms packing.
"It is not clear where the refined sugar came from, but the commodity is both locally produced and imported," he said.
As a result of the rampant circulation of refined sugar, the market absorption of local sugar has been declining, he said.
Therefore members of the Ikagi have urged the government to immediately withdraw refined sugar from the free market, and audit the origins of the commodity.
Against Kussetiyadi's pessimistic estimate, Suwandi adversely saw an upward trend in the country's sugar production.
He said that Indonesia's sugar production in the 2008 milling season was estimated at 2.72 million tons, which is higher than the production during the milling season in 2007.
"The production estimate is based on the acreage of sugar cane plantations which reach 445,113 hectares and milled sugar cane 34.26 million tons," Suwandi said.
"If that estimate comes true, Indonesia whose sugar consumption reaches 2.7 million tons, will be self-sufficient in the commodity, particularly sugar for direct consumption," he said.
A national workshop on the 2008 milling season's mid-term evaluation organized by the Indonesian Sugar Association (AGI) in Yogyakarta on August 11-12, 2008 revealed that the production of the 58 sugar mills up to July 31, 2008 was recorded at 1.23 million tons.
Of the total, 673,441 tons were produced by 46 sugar mills in Java and 559,468 tons by 12 sugar factories outside the island.
The average production of the 58 sugar mills stood at 6.27 tons of crystal sugar per hectare with a sucrose content of 8.02 percent.
As a comparison, the milling production in the same period in 2007 was lower than that in 2008, reaching only 959,913 tons.
Suwandi said that overall there had been an increase in the sugar production of almost all sugar factories in Indonesia.
"There is an interesting phenomenon in this year's milling season such as the increase in sugar cane weight and productivity experienced by among others state-owned plantation companies (PTPN) II, X,XI,XIV, PT PG Tjandi, and PT Madu Baru," he said.
He said that although sugar production had been increasing, sugar milling and other sugar businesses were also worried about the declining prices. (T.A014/A/HNG/B003) 24-08-2008 22:40:11
GOVT DETERMINED TO MAINTAIN ITS RICE SELF-SUFFICIENCY
By Andi Abdussalam
Jakarta, Aug 23 (ANTARA) - Indonesia, which boasted about its rice self-efficiency at a FAO conference in Rome in 1985, is determined to maintain the self-efficiency in rice it has regained after years of importing the commodity.
"We estimate that the country's rice production this year will exceed national consumption. We have to maintain the rice self-sufficiency by maintaining increased national rice production," President Susilo Bambang Yudohono told a plenary meeting of the Regional Representatives Council (DPD) here on Friday.
The Central Bureau of Statistics (BPS) reported production in 2008 is estimated at 59.88 million tons of dry unhusked rice or equivalent to about 34 million tons of rice.
With a population of 227.78 million, the national rice production level would surpass national need estimated at 31.68 million tons a year.
Last year, Indonesia's dry unhusked rice output rose by 4.98 percent or 2.70 million tons from 2006, enabling the country to enjoy a surplus of 1.5 million tons,
President Yudhoyono said that in order to maintain rice self-sufficiency, each region in the country must significantly raise its production level. To this end, the government would provide the needed facilities such as seeds, fertilizer and improve agricultural infrastructure facilities in the regions.
In the meantime, DPD chairman Ginandjar Kartasasmita said the DPD was delighted to hear that Indonesia had regained self-sufficiency in food, in rice in particular. He said it was a great achievement by the government.
Food security is as crucial to Indonesia as energy security. In addition to energy security, food security is an important problem in Indonesia with its big population, Kartasasmita said.
Yet, to maintain the food self sufficiency, the government should stay alert, he said because there were many factors that could influence agricultural production.
In addition to climate and weather conditions as well as the threat of plant diseases or pests, the availability of production facilities and a smooth distribution system were also determining factors. For example, he said, the DPD had received reports from several regions such as North Sumatra about shortages of fertilizer.
"Above all, what poses as a challenge to us is how to guarantee the welfare and the buying power of farmers and fishermen who should now be enjoying the benefits of the high prices of agricultural products in the world," he said.
For this reason, President Yudhoyono explained that each time he was visiting a region he would always ask a report from the governor, mayor and district head about the progress and problems their regions were facing in food production.
Yudhyono admitted that enough national food stock was only one of the factors that affected prices of food. "The smoothness of goods distribution is also a factor that could affect price stability," he added.
Regional governments therefore need to support the central government's efforts to improve the distribution and flow of goods. This is intended to reduce additional burdens in the distribution of goods.
The president also called on regions to anticipate food price hikes by increasing stocks of the staple. "All regions must discard their egoistic attitudes that hamper the flow and distribution of necessary goods for the people. Barriers hampering the flow of goods must be removed because it will drive up prices and inflation rates," the president said.
The president's remarks indicated the important role the regions were playing in building the country's self-efficiency in food. Regions have extensive and potential areas for the development of agriculture.
Therefore, agricultural and plantation development will not be carried out in Java only but also in other island . According to Agriculture Minister Anton Apriantono, if the self-sufficiency is to be maintained, agricultural development must not be done in Java only but also in other islands.
"Oil palm plantations can be opened in many regions other than where they are now located," the minister said on Friday.
Development of rice and oil palm plantations would be carried out in regions which are most suitable such as Marauke in Papua, he said.
"But the central government will only facilitate development of agriculture in the regions. The initiaive must be taken by the regional administrations concerned," Apriiantono added.
Indonesia has several food crop varieties such as maize and soybean that could be developed to strengthen national food resilience.
"Our food resilience is high. We have various food varieties which are carbohydrate sources that can replace rice if the country runs low on the staple," Hasanuddin Ibrahim of the Ministry of Agriculture said recently.
Besides, the government had also stated its determination to taise Indonesia's soybean production to more than 1.3 million tons in 2008 in order to reduce dependence on imports.
Agriculture Minister Anton Apriantono said the government would have to enhance the country's self-sufficiency in soybean from 2015 to 2011 with a production of one to 1.3 million tons.
To maintain self-sufficiency in food, he added, the government had allocated Rp1 trillion, which included Rp600 billion for soybean cultivation. (T.A014/A/HAJM/14:25/A/O001) 23-08-2008 14:37:54
Jakarta, Aug 23 (ANTARA) - Indonesia, which boasted about its rice self-efficiency at a FAO conference in Rome in 1985, is determined to maintain the self-efficiency in rice it has regained after years of importing the commodity.
"We estimate that the country's rice production this year will exceed national consumption. We have to maintain the rice self-sufficiency by maintaining increased national rice production," President Susilo Bambang Yudohono told a plenary meeting of the Regional Representatives Council (DPD) here on Friday.
The Central Bureau of Statistics (BPS) reported production in 2008 is estimated at 59.88 million tons of dry unhusked rice or equivalent to about 34 million tons of rice.
With a population of 227.78 million, the national rice production level would surpass national need estimated at 31.68 million tons a year.
Last year, Indonesia's dry unhusked rice output rose by 4.98 percent or 2.70 million tons from 2006, enabling the country to enjoy a surplus of 1.5 million tons,
President Yudhoyono said that in order to maintain rice self-sufficiency, each region in the country must significantly raise its production level. To this end, the government would provide the needed facilities such as seeds, fertilizer and improve agricultural infrastructure facilities in the regions.
In the meantime, DPD chairman Ginandjar Kartasasmita said the DPD was delighted to hear that Indonesia had regained self-sufficiency in food, in rice in particular. He said it was a great achievement by the government.
Food security is as crucial to Indonesia as energy security. In addition to energy security, food security is an important problem in Indonesia with its big population, Kartasasmita said.
Yet, to maintain the food self sufficiency, the government should stay alert, he said because there were many factors that could influence agricultural production.
In addition to climate and weather conditions as well as the threat of plant diseases or pests, the availability of production facilities and a smooth distribution system were also determining factors. For example, he said, the DPD had received reports from several regions such as North Sumatra about shortages of fertilizer.
"Above all, what poses as a challenge to us is how to guarantee the welfare and the buying power of farmers and fishermen who should now be enjoying the benefits of the high prices of agricultural products in the world," he said.
For this reason, President Yudhoyono explained that each time he was visiting a region he would always ask a report from the governor, mayor and district head about the progress and problems their regions were facing in food production.
Yudhyono admitted that enough national food stock was only one of the factors that affected prices of food. "The smoothness of goods distribution is also a factor that could affect price stability," he added.
Regional governments therefore need to support the central government's efforts to improve the distribution and flow of goods. This is intended to reduce additional burdens in the distribution of goods.
The president also called on regions to anticipate food price hikes by increasing stocks of the staple. "All regions must discard their egoistic attitudes that hamper the flow and distribution of necessary goods for the people. Barriers hampering the flow of goods must be removed because it will drive up prices and inflation rates," the president said.
The president's remarks indicated the important role the regions were playing in building the country's self-efficiency in food. Regions have extensive and potential areas for the development of agriculture.
Therefore, agricultural and plantation development will not be carried out in Java only but also in other island . According to Agriculture Minister Anton Apriantono, if the self-sufficiency is to be maintained, agricultural development must not be done in Java only but also in other islands.
"Oil palm plantations can be opened in many regions other than where they are now located," the minister said on Friday.
Development of rice and oil palm plantations would be carried out in regions which are most suitable such as Marauke in Papua, he said.
"But the central government will only facilitate development of agriculture in the regions. The initiaive must be taken by the regional administrations concerned," Apriiantono added.
Indonesia has several food crop varieties such as maize and soybean that could be developed to strengthen national food resilience.
"Our food resilience is high. We have various food varieties which are carbohydrate sources that can replace rice if the country runs low on the staple," Hasanuddin Ibrahim of the Ministry of Agriculture said recently.
Besides, the government had also stated its determination to taise Indonesia's soybean production to more than 1.3 million tons in 2008 in order to reduce dependence on imports.
Agriculture Minister Anton Apriantono said the government would have to enhance the country's self-sufficiency in soybean from 2015 to 2011 with a production of one to 1.3 million tons.
To maintain self-sufficiency in food, he added, the government had allocated Rp1 trillion, which included Rp600 billion for soybean cultivation. (T.A014/A/HAJM/14:25/A/O001) 23-08-2008 14:37:54
Selasa, 19 Agustus 2008
GOVT CHALLENGED TO MEET ITS 6.2 PCT ECONOMIC GROWTH TARGET
By Andi Abdussalam
Jakarta, Aug 20 (ANTARA) - While the government sees better economic conditions next year, businesses say that the government has to work hard to achieve its 6.2 percent economic growth and 6.5 percent inflation rate targets for 2009.
"The government has to work hard and focus on infrastructure development if it wants to achieve its economic growth and inflation rate targets next year," Chairman of the Indonesian Association of Young Entrepreneurs (Hipmi), Erwin Aksa said on Monday.
The Hipmi chairman made the statement in response to the government's prediction that Indonesia's economic growth in 2009 would remain at over six percent despite persistent external pressures.
"We have been able to maintain the economic growth at over 6 percent during eight consecutive quarters," President Susilo Bambang Yudhoyono said in his state of the nation address on the Draft 2009 State Budget and Financial Notes before the House of Representatives (DPR)'s plenary session here last week.
The president said it was a matter of fact that Indonesia's economy during the first semester of 2008 managed to keep its momentum going with a growth rate of 6.4 percent, which is the highest rate after the economic crisis in 1998.
"We should be grateful that despite the persistent external pressures, we have been able to maintain the economic growth of over 6 percent during eight consecutive quarters," the president said.
Yet, Hipmi is of the view that the 6.2 percent economic growth and 6.5 percent inflation rate targets are a challenge to the government owing to the fact that commodity prices are still high and the people's purchasing power still weak.
"The 2009 state budget should focus on the development of infrastructure in order to improve the investment climate and reduce the poverty rate," Erwin Aksa said.
According to the the Hipmi chairman, the budget should be spent on effective and efficient infrastructure development programs so that it would have a direct effect on the economic growth, on increasing the people's purchasing power and on improving their living standard.
In the meantime, inflation will also pose a challenge. The Indonesian Chamber of Commerce and Industry (Kadin) said that the government's major challenge in 2009 was to control inflation. It said that oil and commodity prices in the world market are still difficult to predict until the beginning of 2009.
"If the government is unable to control the inflation, the purchasing power of the middle class will also drop. At present, domestic demand is still relatively good because the middle class has been able to maintain the level of their purchasing power," Bambang Soesatyo, chairman of Kadin's permanent committee for monetary and fiscal affairs, said.
"The problem is whether or not we will achieve a good growth that can improve the people's purchasing power, lower the poverty rate and create jobs for both new and old workers," he said.
He said banks would also likely make necessary adjustments to their credit provisions following the increase in the central bank's benchmark interest rate, which could serve as a stumbling block to the development of the real sector.
The Indonesian central bank (Bank Indonesia/BI) early this month raised its benchmark interest rate by 25 basis points from 8.75 percent to 9.00 percent in an effort to offset the upward trend of the inflation.
The increase in bank interest rates could hamper the development of the production sector.
"It is difficult to expect a significant expansion in investment next year because the business climate is not conducive due to increased risk factors," Bambang Susatyo said.
Therefore, according to Erwin Aksa, the government has to create a conducive business climate to boost the development of the real sector and to realize infrastructure projects that had been planned but not yet built so far.
Virtually, Erwin Aksa said, the government's expansive draft 2009 state budget was relatively realistic to support the economic growth target.
The government has prepared a comprehensive state budget with Rp1,122 trillion expenditure allocation, far over the state revenues and grants which were set at Rp1,022 trillion.
A finance ministry official is even optimistic with the country's economic condition. He predicted that the country's economic condition in 2009 would be better than this year's, due to various supporting factors.
"Indonesia's economic condition in 2009 would be better than in 2008 because the world's economy is expected to perform better next year in better market conditions while Indonesia will also have a better tax resource-base than that in the previous year," Anggito Abimayu, Head of the Finance Ministry's Fiscal Policy Affairs, said.
He mentioned a new law on income tax (PPh) which followed the issuance of a law on general tax provisions and procedures (KUP). It is expected that this year the deliberations of a law on value added tax (PPN) and a law on luxury good sales tax (PPnBM) would have also been completed.
"The various instruments will reinforce the country's tax-resource base in 2009 and would increase the taxpayers' obedience so that the country's tax revenues would also increase," he said. T.A014/A/HNG/A/S012)
INCREASED EDUCATION BUDGET RAISES CONCERN ABOUT IMPROPER SPENDING
By Andi Abdussalam
Jakarta, Aug 19 (ANTARA) - Teachers and various quarters in the educational sector hailed the government's proposal in the Draft 2009 State Budget to raise education expenditure from Rp154.2 trillion in 2008 to Rp224 trillion next year.
However, worries and warnings also arose that the funds which for the first time reached 20 percent of the state budget as required by the 1945 Constitution might not be used in proper ways to improve the quality of education.
President Susilo Bambang Yudhoyono in his state of the nation address on Friday last week said the government was proposing to raise the education budget to meet the 20 percent requirement in the Constitution.
"The budget for education has risen to almost double from Rp78.5 trillion in 2005 to Rp154.2 trillion in 2008. In fact, for the 2009 budget, in the midst of the global oil and food price crisis that has adversely impacted our economy, we have been able to meet the 20 percent of the State Budget requirement for education as mandated by the constitution," the president said.
The education budget calculation formula for the 2009 state budget was the same as for the 2008 state budget but the amount was increased to 20 percent.
The president revealed the plan to raise the education budget only two days after the Constitutional Court made a decision demanding the government to allocate budget amounting to at least 20 percent from the State Budget and Regional Budgets for the education sector.
Teachers welcomed the government's decision to heed the Constitutional Court's decision. "We gladly welcome the increase in the education budget which reaches 20 percent of the state budget to increase the welfare of teachers," Sayuti, coordinator of United Teachers Front of Nanggroe Aceh Darussalam (NAD) province, said.
The same response was also given by other teachers in various parts of the country, including those in Lebak district, Banten.
"If the 20 percent budget is realized, education in the country will progress and its quality will be improved," Nurmanah (50), an elementary school teacher in Rangkasbitung Timur, Lebak District, Banten province, said.
She said that Indonesia up to now had not enough and proper educational facilities due to shortages of funds. Thus, the increase in the education budget was really a welcome surprise.
Minister of Education Bambang Sudibyo himself claimed he was surprised to learn that the president in his state of the nation address proposed a 20 percent education budget.
"I was surprised, even almost dazed, to hear the president's address," Sudibyo said.
In line with the increase in the education budget, calls for a tight control of its use also arose.
Thus, President Susilo Bambang Yudhoyono asked that increase in the budget for education in the 2009 Draft State Budget must be used most properly in improving the quality of education.
"I call on all concerned to spend the education budget which has been raised by 20 percent as best as efficient as possible, and avoid missing a target, " he told a meeting with national exemplary figures on Monday night.
He told the exemplary national figures, including teachers from 33 provinces in the country, and dedicated teachers from remote and isolated areas, that the increased budget will raise the living standard of teachers, and improve the quality of graduates making them ready for work.
The president said that in order to meet the decision of the Constitutional Court, the government in the 2009 Draft State Budget allocated a budget of 20 percent for education, bringing the budget to a total of Rp244 trillion.
In the meantime, the Indonesian Teachers Association (PGRI) also called for a tight control of the use of the education budget so that it would be effective and efficient.
"We hail the allocation of Rp224 trillion or 20 percent of the state budget for the education sector but we hope that the use of the budget will be tightly controlled," H Dahri of PGRI for South Kalimantan branch said.
He said that a budget of that large amount would be useless if there were leakages in its use.
Anang Rosadi Adnansi, deputy chairman of the People's Welfare Commission of South Kalimantan's Regional Legislative Assembly (DPRD) said that the big budget should not create 'project mentality' of officials in charge of managing the use of the funds.
"All parties welcome the 20 percent budget but it should not create a project mentality," he said referring to widely known officials' mentality to create projects where they could get money.
Therefore, the Education Ministry and Religious Affairs Ministry as the recipients of the budget had to prepare an implementation scheme for the proper and efficient use of the budget.
"The Ministry of National Education and the Ministry of Religious Affairs should prepare how to absorb a fund which all of a sudden increases drastically," Chairman of the United Development Party Faction of the House of Representatives (DPR) Lukman Hakim Saefuddin said.
Minister for National Education Bambang Sudibyo said he already had a strategy for the use of the fund. He cited as an example the absorption of educational expenditure in the 2007 budget which reached 93 percent.
He said that the education budget allocation would be channeled through the ministry of national education and the ministry of religious affairs as well as through the General Allocation Fund (DAU) and Special Allocation Fund (DAK) schemes.
According to Sudibyo, Rp52 trillion of the education budget would be channeled through the ministry of education and Rp20 trillion through the religious affairs ministry (which manages state-owned religious schools), and the remaining ones through the DAU and DAK schemes.
The funds will, among others, be used to rebuild damaged school buildings and increase the functional allowance of 2.7 million teachers from the present Rp1.5 million a month to Rp2 million, Minister Sudibyo said.
(T.A014/A/HAJM/A/S012) 19-08-2008 19:39:49
Jumat, 15 Agustus 2008
GOVT'S OIL PRICE ASSUMPTION AT US$100 SEEN AS TOO LOW
By Andi Abdussalam
Jakarta, Aug 15 (ANTARA) - The government is considered to be too optimistic in setting the oil price assumption at US$100 a barrel for the 2009 state budget amid oil price volatility.
Besides, the oil lifting the government has set at 950,000 barrels per day is also seen as lower than it should have been in an expanding draft state budget which for the first time reaches over Rp1,000 trillion.
"As the government is to increase the allocation for the education sector by 20 percent in the 2009 state budget, it should set the oil price assumption at US$110 and oil lifting at one million barrels per day," Drajad Wibowo of Commission VI of the House of Representatives (DPR), which deals with financial, banking and national development affairs, said.
The National Mandate Party (PAN) politician made the remarks in response to President Susilo Bambang Yudhohono's state of the nation address on the Draft 2009 Stage Budget and Financial Notes before the DPR's plenary session here on Friday.
The Indonesian Chamber of Commerce and Industry (Kadin) concurred with Drajad Wibowo, saying the Indonesian Crude Price (ICP) assumption at US$100 per barrel in the draft 2009 state budget is too optimistic.
During the first semester of 2008, the world crude price jumped by 40 percent to US$147 a barrel. But in the last two months it has fallen 20 percent to below US$115 per barrel.
The recent fall of the oil price has been taken into account by the government in setting the domestic oil price assumption for the state budget at US$100 a barrel.
"I think, the decline would not continue in 2009," Kadin chairman MS Hidayat said. He said an ICP assumption at US$110 per barrel would be more realistic.
However, according to Dradjad Wibiwon, the government's oil price assumption at US$100 for the draft 2009 state was actually relatively good.
"I think the oil price assumption at US$100 is OK because the oil price in the world market is difficult to predict. A price at a range between US95 and US$120 per barrel is reasonable enough," he said.
Dradjad, who is a politician from the National Mandate Party (PAN), said the polarization of the world crude price was quite high where oil price could increase by several tens of percent in only a few months.
"This is beyond the economists' ability to predict," he said suggesting that in line with its plan to allocate 20 percent of the state budget to the educational sector, the government should however set the Indonesian crude price at US110 per barrel.
"It should not happen that the government is forced to finance the education expenditure base on the budget with loans. So, there should be adjustment between the oil lifting and the oil price," he added.
The government should have set the country's oil lifting at about one million barrels per day, instead of the 950,000 as it has assumed for the 2009 Draft State Budget, Dradjat said.
"I was surprised to hear that the oil lifting was set at only 950,000 barrels per day," he said.
Drajad said the oil lifting target of 950,000 barrels per day was not in line with the president's statement when he gave the Cepu oil field to Exxon Mobile.
"When transferring the Cepu oil field to Exxon Mobile, the president said the oil field would begin to produce at the end of 2008 and in 2009 production would have been increasing. So, in 2009, the oil lifting should have reached one million barrels per day," he said.
He expressed hope that the Budgetary Committee of the DPR would correct the government's oil lifting target for 2009 and raise it to one million barrels per day.
Virtually, the government's decision to set the oil price assumption at US$110 per barrel and the oil lifting at 950,000 barrels per day was also based on agreements between the government and the DPR.
House speaker Agung Laksono said the DPR and the government had agreed in previous meetings set the Indonesian crude price for the 2009 state budget at a range between US$95 and US$120 a barrel.
According to Coordinating Minister for Economic Affairs Sri Mulyani, the ICP assumption at US$100 per barrel is realistic
Besides, the DPR and the government also agreed the Indonesian crude lifting to be set at between 927,000 and 950,000 barrels per day and the rupiah exchange rate at Rp9,000-Rp9,200 per 1 US dollar, he said.
Therefore, the House according to Agung Laksono, has asked the government not to overreact to the volatility of the world's crude price and not to hastily change the basic assumption of average domestic oil price in the draft 2009 stage budget.
"The House is of the opinion that the world economic turbulence and crude price volatility tend to develop to an uncertain level and difficult to predict," House Speaker Agung Laksono told the DPR's plenary session.
According to President Susilo Bambang Yudhoyono, the government's oil price assumption was still within the price range approved by the DPR, namely between US$95-$120 per barrel.
The president said that the selected average oil price at US$100 per barrel in 2009 is a reflection of the latest world oil price movements and the latest projection.
"Nevertheless, the government feels that it is important to still protect the state budget against the risk of an upward movements of oil price that can always happen, just as what we have experienced during the last 18 months," the head of state said. (T.A014/A/HAJM/A/E002) 15-08-2008 19:30:28
Minggu, 10 Agustus 2008
PRESIDENT ASKED NOT TO RESPOND TO US CONGRESS OVER OPM ISSUE
By Andi Abdussalam
Jakarta, Aug. 10 (ANTARA) - Legislators and activists have called on President Susilo Bambang Yudhoyono not to respond to a U.S. Congress letter asking him to release two sympathizers of the outlawed Free Papua Organization (OPM), Filep Karma and Yusak Pakage.
Jakarta, Aug. 10 (ANTARA) - Legislators and activists have called on President Susilo Bambang Yudhoyono not to respond to a U.S. Congress letter asking him to release two sympathizers of the outlawed Free Papua Organization (OPM), Filep Karma and Yusak Pakage.
"The president must firmly reject the request," Chairman of the People's Consultative Assembly (MPR) Hidayat Nurwahid said here on Sunday.
The MPR chairman made the statement in response to a report that 40 US Congressmen had written to President Susilo Bambang Yudhoyono demanding the "immediate and unconditional" release of the two sympathizers of the outlawed separatist OPM.
Karma and Pakage were sentenced to 15 years and 10 years imprisonment respectively in May 2005 for hoisting a separatist "Bintang Kejora" (Morning Star) flag in Abepura, Papua, on December 1, 2004.
"This is a form of intervention into the nation's sovereignty," Nurwahid said expressing his regret.
Abdillah Toha, chairman of the Inter-Parliamentary Cooperation Body (BKSAP) of the House of Representatives (DPR), concurred with Nuwahid, saying there was no need for the president to respond to the US congressmen's request.
"The US Congress is free to write letters to anyone for the sake of its constituents. So, if the president responds to it, he should only explain Indonesia's present legal system," he said.
Former chairman of the Executive Board of Islamic Students Organization (HMI), Anas Urbaningrum said Papua is a province within Indonesia's territory and sovereignty. Thus, it is a matter of Indonesia's domestic affairs.
"That is why it is not proper for the parliaments of other countries to meddle into others' internal affairs," Urbaningrum who is now an executive chairman of the Democrat Party said.
He said that a member of parliament of a big country like the United States should understand the principles of mutual respect towards the domestic affairs of other countries.
"Yet, what happens with the US Congress. They show arrogance and attitude as if they could serve as police for other countries," he said.
Therefore, he said that the US Congress letter need not be replied. "If we should reply it, we should only explain the principles of good relations and mutual respect," Urbaningrum said.
Hajriyanto Yasseir Thohari of the Commission I of the DPR which deals with foreign affairs, said the letter indicated that the US Congress was ignorant about the unitary state condition of Indonesia.
"With the letter it is clear that they are ignorant about Indonesia's democracy and law. Indonesia is no less democratic than the United States, and it is neither inferior to the United States in terms of law enforcement, because Indonesia upholds legal supremacy," Thohari said.
Deputy Chairman of Commission I of the DPR Yusron Ihza Mahendra said if the United States alleged that injustice had taken place in Papua, they were actually triggered by the United States itself.
"Local people have been focusing a spot light on the presence of Freeport in Timika and other foreign investors, including the British Petroleum in Bintuni, as a source of injustice," he said.
Yusron said that as a result of injustice with regard to abundant natural resources they could not enjoy, certain local people who did not understand the problem were than trapped in establishing a movement against the government of Indonesia.
Andreas H Pareira, another member of the House's Commission I said that the maneuver being played by the US Congressmen was a litmus test for President Yudhoyono.
"It will indicate whether or not Yudhoyono would show his sovereign authority or merely act as a puppet serving the interest of another country," Pareira said.
Meanwhile, thousands of activists of the Indonesian Islamic Organization Hizbut Tahir Indonesia (HTI) staged a rally outside the U.S. Consulate General in East Java on Sunday protesting the US Congress.
This was the second rally held by the HTI in two days. On Saturday, tens of them staged a rally in front of the US embassy in Jakarta warning Washington not to meddle in Indonesia's domestic affairs.
The demonstrators unfurled banners reading "HTI Rejects US Intervention in Papua" and "Prevent the Nation's Disintegration".
"The US said that freedom of thought and expression should be respected while in fact the two OPM members had committed a rebellious act and hoisted the morning star flag," Rally coordinator Fikri A Zudian said.
Therefore, the HTI would call on the President to turn down the US Congressmen's request, and see that the two OPM sympathizers stay in jail.
"The government must reject any kind of intervention. Don't pay attention to the US Congress' letter," Sodik Ramadhan, another rally coordinator, said.
Foreign Minister Hasan Wirajuda said on Saturday he will soon answer the US Congress' letter.
"We will answer the letter as soon as possible. In essence, we will ask the US government to respect the legal decisions made in our country," he said.
Yet, Minister/State Secretary Hatta Radjasa said that until Sunday morning he had not received the US Congress letter.
"Up to know, we still have not yet received the letter," the minister said.
In the meantime, the United States government issued a statement on Sunday through its embassy in Jakarta that it supported Indonesia's full sovereignty and integrity and did not support any separatist movements in Indonesia, including in Papua.
It supported the Indonesian government in applying Law No. 21 / 2002 on Regional Autonomy in Papua and West Papua. (T.A014/A/HNG/B003) 10-08-2008 22:32:07
Selasa, 05 Agustus 2008
BI RAISES BENCHMARK INTEREST RATE TO OFFSET INFLATION
Jakarta, Aug 5 (ANTARA) - The Indonesian central bank (Bank Indonesia/BI) on Tuesday raised its benchmark interest rate (BI rate) by 25 basis points from 8.75 percent to 9.00 percent in an effort to offset the upward trend in inflation and to keep its rate within a targeted range.
The government is determined to maintain the year-on-year inflation rate at 11.25 percent and is thus carrying out an inter-departmental coordination in an effort to achieve the inflation target of 11.25 percent by year end.
However, the BI saw inflationary pressures that could emerge until the end of 2008, prompting its board of governors to decide to raise the BI rate to 9.00 percent on Tuesday.
BI said in press statement that it had raised its BI rate in an effort to stabilize the economic financial system and to support the mid-term inflation target.
According to BI Governor Boediono, BI still saw risks of inflationary pressures in the future which originated from world oil and food price fluctuations and pressures of demand.
By raising its reference rate and taking into account several risk factors as well as inflationary pressures that were likely to emerge, BI hoped it would help curb inflation and predicted that the year-end inflation would be recorded at a range between 11.5 and 12.5 percent.
In a statement, the BI said the increase in the central bank's benchmark interest rate by 25 basis points to 9.00 percent would not affect Indonesia's economic activities.
There were indicators showing that domestic demand was still strong and the banking industry's resilience had remained under control supported by a good implementation of banks' intermediary functions.
BI Governor Boediono said year-on-year bank credits had still grown by 31.6 percent while the gross amount of non-performing loans (NPLs) had dropped to 4.08 percent.
He predicted that Indonesia's economy in 2008 would still grow well supported by export growth, public consumption spending and relatively high government expenditure.
The domestic demand would also be supported by an increase in regional spending and the start of the 2009 general election preparations.
In the meantime, Indonesia's balance of payments was also expected to perform better so that the stability of currency exchange rates would also be well maintained.
Foreign exchange reserves up to the end of July 2008 stood at US$60.56 billion or equivalent to the amount needed to finance 4.7 months of imports and payment of the government's external debts.
According to Boediono, the relatively high risks of inflationary pressures had been taken by BI to increase its BI rate this month, despite the fact that the impact of the fuel oil price hikes on inflation had been significantly reduced.
The BI governor said in order to make the monetary policy effective, the BI rate increase was followed by the optimizing of other monetary instrument policies such as taking under control the volatility of currency exchange rates and the absorption of liquidity excesses through open market operations.
"With the policy, the 2009 inflation rate target of 6.5 - 7.5 percent is expected to be achieved," he said.
The BI's step to raise its benchmark interest rate on Tuesday had been predicted.
State-owned BNI economist Ryan Kiryanto said last week that BI would likely raise its rate by 25 basis points to 9.0 percent this month following monthly and year-on-year inflationary pressures in July which reached 1.37 percent and 11.9 percent respectively.
He said BI would likely take the step to offset the upward trend in inflation which was expected to be fueled by seasonal factors in the coming months.
"But it is believed that the BI rate increase will not shock the market because banks and the real sector can understand the background conditions of such a policy," Kiryanto said.
BI decided early last month to raise its benchmark interest rate by 25 basis points to 8.75 percent in a widely-expected move to curb the accelerating inflation.
Inflationary pressure in 2008 was particularly the result of fuel oil and food price hikes. It noted that the inflationary pressure also resulted from rising demands due to a rise in the amount of bank loans and money supplies until the second quarter of this year.
The inflation rate in July 2008, fueled by price increases in groups of goods and food as well as groups of services such as education, recreation and sports was recorded at 1.37 percent.
"This is actually an annual cycle which was previously predicted to occur," Head of the Central Bureau of Statistics (BPS) Rusman Heriawan said on Friday. Thus, he said, the calendar year inflation is recorded at 8.85 percent and year-on-year inflation rate at 11.9 percent. (T.A014/A/HAJM/a/s012) 05-08-2008 19:27:11
The government is determined to maintain the year-on-year inflation rate at 11.25 percent and is thus carrying out an inter-departmental coordination in an effort to achieve the inflation target of 11.25 percent by year end.
However, the BI saw inflationary pressures that could emerge until the end of 2008, prompting its board of governors to decide to raise the BI rate to 9.00 percent on Tuesday.
BI said in press statement that it had raised its BI rate in an effort to stabilize the economic financial system and to support the mid-term inflation target.
According to BI Governor Boediono, BI still saw risks of inflationary pressures in the future which originated from world oil and food price fluctuations and pressures of demand.
By raising its reference rate and taking into account several risk factors as well as inflationary pressures that were likely to emerge, BI hoped it would help curb inflation and predicted that the year-end inflation would be recorded at a range between 11.5 and 12.5 percent.
In a statement, the BI said the increase in the central bank's benchmark interest rate by 25 basis points to 9.00 percent would not affect Indonesia's economic activities.
There were indicators showing that domestic demand was still strong and the banking industry's resilience had remained under control supported by a good implementation of banks' intermediary functions.
BI Governor Boediono said year-on-year bank credits had still grown by 31.6 percent while the gross amount of non-performing loans (NPLs) had dropped to 4.08 percent.
He predicted that Indonesia's economy in 2008 would still grow well supported by export growth, public consumption spending and relatively high government expenditure.
The domestic demand would also be supported by an increase in regional spending and the start of the 2009 general election preparations.
In the meantime, Indonesia's balance of payments was also expected to perform better so that the stability of currency exchange rates would also be well maintained.
Foreign exchange reserves up to the end of July 2008 stood at US$60.56 billion or equivalent to the amount needed to finance 4.7 months of imports and payment of the government's external debts.
According to Boediono, the relatively high risks of inflationary pressures had been taken by BI to increase its BI rate this month, despite the fact that the impact of the fuel oil price hikes on inflation had been significantly reduced.
The BI governor said in order to make the monetary policy effective, the BI rate increase was followed by the optimizing of other monetary instrument policies such as taking under control the volatility of currency exchange rates and the absorption of liquidity excesses through open market operations.
"With the policy, the 2009 inflation rate target of 6.5 - 7.5 percent is expected to be achieved," he said.
The BI's step to raise its benchmark interest rate on Tuesday had been predicted.
State-owned BNI economist Ryan Kiryanto said last week that BI would likely raise its rate by 25 basis points to 9.0 percent this month following monthly and year-on-year inflationary pressures in July which reached 1.37 percent and 11.9 percent respectively.
He said BI would likely take the step to offset the upward trend in inflation which was expected to be fueled by seasonal factors in the coming months.
"But it is believed that the BI rate increase will not shock the market because banks and the real sector can understand the background conditions of such a policy," Kiryanto said.
BI decided early last month to raise its benchmark interest rate by 25 basis points to 8.75 percent in a widely-expected move to curb the accelerating inflation.
Inflationary pressure in 2008 was particularly the result of fuel oil and food price hikes. It noted that the inflationary pressure also resulted from rising demands due to a rise in the amount of bank loans and money supplies until the second quarter of this year.
The inflation rate in July 2008, fueled by price increases in groups of goods and food as well as groups of services such as education, recreation and sports was recorded at 1.37 percent.
"This is actually an annual cycle which was previously predicted to occur," Head of the Central Bureau of Statistics (BPS) Rusman Heriawan said on Friday. Thus, he said, the calendar year inflation is recorded at 8.85 percent and year-on-year inflation rate at 11.9 percent. (T.A014/A/HAJM/a/s012) 05-08-2008 19:27:11
Minggu, 03 Agustus 2008
CENTRAL BANK EXPECTED TO RAISE BENCHMARK RATE
By Andi Abdussalam
Jakarta, Aug. 2 (ANTARA) - The central bank, Bank Indonesia (BI), is expected to raise further its benchmark interest rate by 25 basis points to 9.0 percent this month following monthly and year-on-year inflationary pressures in July which reached 1.37 percent and 11.9 percent respectively.
"The July inflationary pressures will likely force the central bank to raise its benchmark interest rate (BI rate) by 25 basis points to 9.0 percent," state-owned BNI economist Ryan Kiryanto said on Friday.
The BI will likely take the step to offset the upward trend of inflation which is expected to be fueled by seasonal factors in the coming months.
"But it is believed that the BI rate increase will not shock the market because banks and the real sector could understand the background conditions of such a policy," Kiryanto said.
He said if however the BI worried about negative reactions from businesses if it raised its BI rate, the central bank would at least maintain its last-month rate level at 8.75 percent.
BI decided early last month to raise its benchmark interest rate by 25 basis points to 8.75 percent in a widely-expected move to curb the accelerating inflation.
Inflationary pressure in 2008 was particularly the result of fuel oil and food price hikes. It noted that the inflationary pressure also resulted from rising demands due to a rise in the amount of bank loans and money supplies until the second quarter of this year.
The inflation rate in July 2008, fueled by price increases in groups of goods and food as well as groups of services such as education, recreation and sports was recorded at 1.37 percent.
"This is actually an annual cycle which has previously predicted to occur," Head of the Central Board of Statistics (BPS) Rusman Heriawan said on Friday. Thus, he said, the calendar year inflation is recorded at 8.85 percent and year-on-year inflation rate at 11.9 percent.
The government is determined to maintain year-on-year inflation rate at 11.24 percent.
Trade Minister Mari Elka Pangestu said recently the government was carrying out an inter-departmental coordination in an effort to achieve the inflation target of 11.25 percent by year end.
"The government's inflation target is 11.25 percent. We have to make sure that the target is achievable," the minister said after installing a number of echelon-1 officials at the Trade Ministry.
She said it was her ministry's obligation to prevent the occurrence of scarcities in good stocks and to guarantee the availability of supplies so that prices would not fluctuate.
Pangestu said that efforts to offset the inflation rate should be made comprehensively, not merely by adopting macro economic policies such as increasing or lowering the Bank Indonesia benchmark rate.
In the meantime, BI, besides using its benchmark rate, will also study the possibility of raising banks' minimum reserves requirement (GWM) in order to curb increasing inflation.
"We will take a look at adjustments in the context of all monetary instruments we have such as the BI rate, foreign exchange reserves and weekly auction. If need be, we will consider the GWM. We have many weapons so that we will adopt a good policy combination that will have a minimum negative impact and bring down the inflation rate," BI Governor Budiono said.
The second amendment of Bank Indonesia's regulation on the Minimum Reserves Ratio Requirement (GWM) for Public Banks stipulated that public bank's GWM is set at 5 percent plus 3 percent for those with a total public funds (DPK) of between Rp10 trillion and Rp50 trillion, and plus 1 percent for banks with a DPK between Rp1 trillion and Rp10 trillion.
Banks with a DPK of lower than Rp1 trillion are only required to meet the 5 percent GMW requirement.
Data at BI show that until December 2007 the amount of GWM was Rp158.45 trillion and up to March 2008 it was recorded at Rp125.71 trillion.
By preparing monetary instruments, BI is optimistic that the inflation could be controlled.
"We hope it will not (be worrying). The current inflation rate is chiefly fueled by global crude prices and must be viewed carefully. Moreover, the finance minister's statement that the fiscal side is still safe has raised the public's and the market's confidence in the economy," BI Deputy Governor Hartadi A Sarwono said.
He said the finance minister had stated that the state budget was still safe even though global crude prices hit another record high of US$150 a barrel. The statement made BI confident it could control the accelerating inflation rate fueled by last May's fuel oil price hikes.
After all, the world crude price spiral has passed its peak of US$146 a barrel, and is now estimated that it will drop to between US$120 and US$130 in the second semester of 2008.
"The crude price will settle at a range of US$120 to US$130 a barrel," National Development Planning Board (Bappenas) Planning Director Bambang Prijambodo said.
(T.A014/A/f001) 02-08-2008 13:31:20
Jakarta, Aug. 2 (ANTARA) - The central bank, Bank Indonesia (BI), is expected to raise further its benchmark interest rate by 25 basis points to 9.0 percent this month following monthly and year-on-year inflationary pressures in July which reached 1.37 percent and 11.9 percent respectively.
"The July inflationary pressures will likely force the central bank to raise its benchmark interest rate (BI rate) by 25 basis points to 9.0 percent," state-owned BNI economist Ryan Kiryanto said on Friday.
The BI will likely take the step to offset the upward trend of inflation which is expected to be fueled by seasonal factors in the coming months.
"But it is believed that the BI rate increase will not shock the market because banks and the real sector could understand the background conditions of such a policy," Kiryanto said.
He said if however the BI worried about negative reactions from businesses if it raised its BI rate, the central bank would at least maintain its last-month rate level at 8.75 percent.
BI decided early last month to raise its benchmark interest rate by 25 basis points to 8.75 percent in a widely-expected move to curb the accelerating inflation.
Inflationary pressure in 2008 was particularly the result of fuel oil and food price hikes. It noted that the inflationary pressure also resulted from rising demands due to a rise in the amount of bank loans and money supplies until the second quarter of this year.
The inflation rate in July 2008, fueled by price increases in groups of goods and food as well as groups of services such as education, recreation and sports was recorded at 1.37 percent.
"This is actually an annual cycle which has previously predicted to occur," Head of the Central Board of Statistics (BPS) Rusman Heriawan said on Friday. Thus, he said, the calendar year inflation is recorded at 8.85 percent and year-on-year inflation rate at 11.9 percent.
The government is determined to maintain year-on-year inflation rate at 11.24 percent.
Trade Minister Mari Elka Pangestu said recently the government was carrying out an inter-departmental coordination in an effort to achieve the inflation target of 11.25 percent by year end.
"The government's inflation target is 11.25 percent. We have to make sure that the target is achievable," the minister said after installing a number of echelon-1 officials at the Trade Ministry.
She said it was her ministry's obligation to prevent the occurrence of scarcities in good stocks and to guarantee the availability of supplies so that prices would not fluctuate.
Pangestu said that efforts to offset the inflation rate should be made comprehensively, not merely by adopting macro economic policies such as increasing or lowering the Bank Indonesia benchmark rate.
In the meantime, BI, besides using its benchmark rate, will also study the possibility of raising banks' minimum reserves requirement (GWM) in order to curb increasing inflation.
"We will take a look at adjustments in the context of all monetary instruments we have such as the BI rate, foreign exchange reserves and weekly auction. If need be, we will consider the GWM. We have many weapons so that we will adopt a good policy combination that will have a minimum negative impact and bring down the inflation rate," BI Governor Budiono said.
The second amendment of Bank Indonesia's regulation on the Minimum Reserves Ratio Requirement (GWM) for Public Banks stipulated that public bank's GWM is set at 5 percent plus 3 percent for those with a total public funds (DPK) of between Rp10 trillion and Rp50 trillion, and plus 1 percent for banks with a DPK between Rp1 trillion and Rp10 trillion.
Banks with a DPK of lower than Rp1 trillion are only required to meet the 5 percent GMW requirement.
Data at BI show that until December 2007 the amount of GWM was Rp158.45 trillion and up to March 2008 it was recorded at Rp125.71 trillion.
By preparing monetary instruments, BI is optimistic that the inflation could be controlled.
"We hope it will not (be worrying). The current inflation rate is chiefly fueled by global crude prices and must be viewed carefully. Moreover, the finance minister's statement that the fiscal side is still safe has raised the public's and the market's confidence in the economy," BI Deputy Governor Hartadi A Sarwono said.
He said the finance minister had stated that the state budget was still safe even though global crude prices hit another record high of US$150 a barrel. The statement made BI confident it could control the accelerating inflation rate fueled by last May's fuel oil price hikes.
After all, the world crude price spiral has passed its peak of US$146 a barrel, and is now estimated that it will drop to between US$120 and US$130 in the second semester of 2008.
"The crude price will settle at a range of US$120 to US$130 a barrel," National Development Planning Board (Bappenas) Planning Director Bambang Prijambodo said.
(T.A014/A/f001) 02-08-2008 13:31:20
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