FISCAL STIMULI MUST TARGET MULTIPLE EFFECT SECTORS

By Andi Abdussalam

Jakarta, Jan 31 (ANTARA) - The Rp71.3 trillion fiscal stimuli set aside by the government to stimulate the national economy in facing the impact of the world economic crisis this year should be given to sectors which could generate multiple economic effects and produce multiple economic outputs.

        "A fiscal stimulus is really needed in the face of global economic meltdown but its economic base should be strong where allocations go to sectors whose multiple outputs are high such as sectors that enhance employment opportunities," economist Dradjad H Wibowo said.

        Whatever fiscal stimulus the government will provide for the people should be a stimulus which has the biggest benefit and has multiple effects on the country's economy.

        "For example, expenditures on the people's empowerment programs may have small effects on economic growth rather than spending on irrigation projects," Wibowo said.

        Finance Minister Sri Mulyani Indrawati told a hearing with the House of Representatives (DPR)'s Commission XI on financial affairs recently that the government was preparing a fiscal stimulus to anticipate the impact of the global economic crisis. The fiscal stimuli, set in the 2009 state budget, amounted to Rp71.3 trillion or about 1.4 percent of the national gross domestic product (GDP).

        "If the allocations of the fiscal stimuli are provided without a strong economic base, then it would have a strong nuance that they are provided in order to gain more votes in the coming general elections," Wibowo said.

        In Wibowo's view, the allocations of the government's fiscal stimulus have no strong economic base because the government has no means to measure its effectiveness.

        "That is why I questioned it whether the government has measured the effectiveness of the allocations its stimuli on the economy," Wibowo said.

        According to the finance minister, the fiscal stimuli take the form a government-borne value added tax (PPN DTP) and government-borne import duty (BM DTP).

        They will be allocated to businesses which would increase job opportunities, be active in primary sectors, provide goods needed by the people, support investment, provide basic necessaries and protect consumers.

        There are three categories of fiscal stimuli the government would provide in an effort to reinforce the resilience of the national economy.

        The first category was a direct stimulus from the state budget given to the people in the form of direct cash assistance, subsidy, fuel oil price reduction, power rate cuts and efforts to raise people's purchasing power.

        Sri Mulyani said that the second category took the form of government expenditures on projects that could enhance employment such as infrastructure development and the national program for people empowerment (PNPM) program.

        She said that the third category was a fiscal stimulus taken to reinforce the economic and people's resilience against the impact of the economic crisis.

        Included in the third category is the government's effort to increase the survivability of companies by reducing their tax burden.

        "If their income is declining while their expenditures remain high they will suffer from losses so that we will try to help them reduce their cost burden or increase their revenues," the minister said.

        If their revenues are to be increased, the demand for their products must remain high. It is impossible for the government to make demand for their goods high so that "what the government could do is to reduce their costs, including tax burden, such as reduction in the companies' income taxes.

        In the meantime, chairman of the Permanent Committee for Internal Trade Affairs of the Indonesian Chamber of Commerce and Industry (KADIN), Bambang Soesatyo called on the government and monetary authorities to help lower bank interest rates to make the government's fiscal stimuli effective in developing the real sector.

        "We call on the government and monetary authorities to coordinate efforts to lower bank interest rates and improve banking liquidity so that banks will be able to channel credits at lower interest rates," he said

        In KADIN's view, the effectiveness of the government's Rp71.3 trillion fiscal stimuli would be less significant in boosting the economy if not coupled with the lowering of bank interest rates to enable businesses to get funds easily for working capital and investment.

        The government would be in a passive position in facing the impact of the economic crisis if its approaches are limited to providing subsidy and tax incentives only. It needs to play an active role in responding to any threat and potential problems arising from the economic crisis.

        Still, the policy of introducing low-priced generic drugs, cooking oil and exemption of added value tax would not significantly increase the people's purchasing power or boost domestic consumption.

        When the people's purchasing power was low, even price subsidies would not be able to stimulate productivity at home, Soesatyo said.

        He said tax incentives and exemption from import duties would neither be effective in reviving the real sector, because many business units in various sectors were no longer viable enough to serve as a tax-resource base because they were on the verge of bankruptcy.

        "Although there is import duty exemption, capital good and raw material imports have already declined drastically. Up to the third week of January, 2009, imports reached a total value of US$3.5 billion only, a steep fall from US$9.5 billion in the same period a year earlier," he said. ***2*** (T.A014/A/HAJM/A/S012) 22:25/... ) (T.A014/A/A014/A/S012) 31-01-2009 22:23:12

BUSINESSMEN, FARMERS CAUTIOUS ABOUT CPO PRICE REBOUND

By Andi Abdussalam

Jakarta, Jan 29 (ANTARA) - Business players and farmers are giving cautious response to signs of improving crude palm oil (CPO) prices after plunging by over 60 percent from about US$1,200 per ton in March to about US$400 per ton in December last year.

        "Although the price is going up it is believed that it would not reach last year's level when it was recorded at US$1,000 per ton," Treasurer of the Indonesian Crude Palm Oil Producers Association (Gapki), Laksamana Adiyaksa, said here on Wednesday.

        The price of CPO is predicted to continue its upward trend in response to increasing demand in the world market due to declining stocks.

        "The increase in the price of CPO this month is because stocks in Europe are declining after high consumption during the winter season at the end of 2008," Adiyaksa said.

        He said that it was predicted that the latest price would reach US$600 per ton while the price of CPO last year was US$1,000 per ton.

        Timbas Prasad Ginting, a palm oil businessman, said that the price of fresh fruit bunches (TBS) this week had reached Rp1,092 per kg from the earlier price of Rp1,048 per kg. The price of CPO has also increased to Rp6,323 per kg.

        The prices of TBS and CPO this week significantly increased if compared with those in the January 7 - 13, 2009 period which were recorded at Rp963.52 per kg and Rp5,031.42 per kg respectively.

        Companies dealing with CPO business remain cautious however, despite signs of increasing prices.

        Foods and agribusiness firm Sinarmas still restrained from expanding its investment in this sector as it will still look to the impact of the current world economic crisis.

        "In facing this business, we have to be conservative and be prudent for the time being, but if our cash flow performance is good we will increase our investment," Sinarmas Chief Executive Officer Franky O. Widjaja said on Wednesday.

        Sinarmas made additional investment worth US$200 million, including for the expansion by 20,000 hectares of its oil palm plantations. For this year, the company only sets aside US$100 for plantation expansion and construction of a CPO factory.

        "Sinarmas has begun its CPO business in eastern Indonesian regions and is planning to open a new plantation on a 2,000 hectare plot in Jayapura," Franky Widjaja said.

        The gloomy CPO business condition last year caused CPO exporters in Sumatra temporarily stopped their overseas shipments pending the stabilization of CPO prices in the world market.

        "Except to meet contract obligations, exporters have temporarily ceased overseas shipments to avoid losses which could be caused by the present CPO price fluctuations," a CPO exporter said in North Sumatra, in March 2008.

        In the meantime, PT Astra Agro Lestari (AALI), a leading CPO exporter, said its CPO exports in 2008 dropped if compared with the volumes of its shipments of the commodity in 2007.

        Investor Relations officers Thajo DA of AALI said in the company's investor bulletin that AALI's exports of the commodity in 2008 dropped 25.2 percent to 110,614 tons from 147,815 tons a year earlier.

        However, AALI's CPO sales at home increased in 2008 13.2 percent to 970,728 tons from 857,825 tons in 2007. This was due to increasing domestic demand for CPO. It is expected that domestic demand would continue to increase this year.

        Derom Bangun, chairman of the Indonesian Crude Palm Oil Council (DMSI) and adviser of the Indonesian Crude Palm Oil Businesses Association (Gapki), said demand for CPO at home could increase to 6 million to 6.6 million tons.

        "With the increase in domestic demand, exports could be reduced so that it would also reduce pressure on the world market," he said after the launch of the International Conference & Exhibition on Palm Oil (ICE-PO 2009) here on Wednesday.

        Indonesia's crude palm oil production in 2009 is estimated to total 20 million tons, of which 4.5 million to 5 million tons will be consumed at home and the rest exported.

        He said Indonesia's CPO exports to Europe were being hampered by a regulation the European Union had adopted with regard to the impact of fossil and vegetable fuel oil gases on the greenhouse effect.

        In the meantime, the government is still imposing a zero percent export tax on CPO due to the low price of the commodity in the world market.

        CPO exports for February 2009 shipments will be subjected to zero percent export taxes because the CPO reference price is still less than US$750 per ton, according to Director General for External Trade of the Ministry of Trade Diah Maulida.

        "Export tax for CPO exports is still set at zero percent, the same as those two months ago because the CPO reference price in the world market is only US$555.98 per ton," she said here on Tuesday.

        Since December 2008, the government has not collected export taxes for CPO exports (export tax zero percent) because the price of CPO in the international market fell to about US$400 per ton.***2*** (T.A014/A/HAJM/B003) 2. 21:00. (T.A014/A/A014/B003) 29-01-2009 21:07:56

TOBACCO GROWERS OPPOSE MUSLIM SCHOLARS' BAN ON SMOKING

By Andi Abdussalam

Jakarta, Jan 27 (ANTARA) - Indonesian tobacco farmers are opposed to an edict issued by the Council of Indonesias Ulema (MUI) forbidding Muslims in Indonesia to smoke although the country earns tens of trillions of rupiah of its revenues from cigarette taxes.

        "The edict will affect the income of tobacco growers and indirectly impact on people who want to smoke," said Abdurrahman, chairman of the Tobacco Farmers Association in Jember which has 6,000 hectares of tobacco plantations in East Java.

        He expressed regret about the MUI edict which banned children, expecting mothers and people in public places from smoking, saying tobacco growers would not obey it and continue to plant tobacco to support their families.

        Abdurrahman said he was confident the MUI ruling would not change the habit of smokers and not apply to them in Jember because the region had many tobacco growers. "Plantations of kasturi tobacco alone cover 6,000 hectares," he said.

        The secretary of Jember's Tobacco Commission (KUTJ), Abdus Setiawan, said farmers were not bothered by the issuance of the edict. "Tobacco demand over the past five years has remained stable and it does not seem it will be affected by the edict," he said.

        He said tobacco production in Jember was increasing almost every year. In 2007, production stood at 14,763.18 tons and it increased to 17,032.18 tons in 2008.

        The problem of smoking is not that simple, not just a matter of 'halal' (allowed) or 'haram' (forbidden), but also of health and most importantly of its commercial aspects which involve the welfare of a large segment of the public.

        On a national scale, cigarettes contribute tens of trillions of rupiah to the state in the form of taxes.

        Indonesia which has a population of about 228 million is a potential market for cigarette industries. Reducing the number of cigarette consumers would threaten tobacco/cigarette producers and millions of people whose livelihood depends on the industries.

        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 was 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. The government also has set itself an income target of Rp46.5 trillion from cigarette excise tapes in 2008.

        The contribution of tobacco or cigarettes to the people's welfare is so great that many people are opposed to the MUI edict which they thought would affect their livelihood.

        "We have to remember that many people depend on cigarettes like those who live in Java's districts of Kudus, Temanggung, Kenda and other districts in Indonesia," Chairman of the National Awakening Party (PKB) for Central Java branch, Abdul Kadir Karding said here on Tuesday.

        He said that an MUI edict should be issued based on the interest of the public at large, not merely on the interest of certain groups of people. It should think of the fact that if implemented the edict would affect the people's livelihood which so far relied on cigarette production. But because cigarettes involve people's incomes, it would be difficult for them to implement the religious ruling by MUI.

        "I am convinced the people will not heed the MUI edict and thus it would corrupt the credibility and existence of the Muslim scholars council," Abdul Kadir Karding said.

        Thus, the MUI decision to issue an edict which bans Muslims from smoking is a threat to its credibility and existence, he said. After all, the status of smoking in the Islamic law is already clear, namely Makruh (objectionable) so that there was no need to question it, let alone decide it as 'haram'(forbidden).

        Meanwhile, Ridha Adjam, director of Makuwaje Consortium (non-governmental organization) of North Maluku province said he was opposed to the ruling because its legal basis was not clear.

        He said that in the Holy Book (Al Quran) and in the Prophet tradition, there was no single verse or point which clearly stated that smoking was forbidden. The reason that smoking was harmful to health was not strong to confirm that smoking was haram.

        "I personally agree that children and pregnant women should not smoke for health reason but I am opposed to it if they are banned based on the MUI edict because its legal basis is not strong," he added.

        The Indonesian Ulemas Council (MUI) issued an edict in a meeting in Padangpanjang, West Sumatra, on Sunday, banning children, pregnant women, MUI members and for those in public places from smoking.

        "MUI has issued an edict which states that smoking is forbidden for children, pregnant women, MUI members and for those in public places," Amin Suma, chairman of the Edict Commission of the MUI said Sunday.

        He said that the MUI meeting agreed to two rulings, namely one that bans smoking for children, pregnant women, those in public places and MUI members and the other one that states that smoking was between 'haram' and 'makhruh.'

        According to Suma, the adoption of the edict was based on the emergence of differences of opinions on whether smoking for Muslims was allowed or forbidden.

        Nurhayati Hakim, an advisor to MUI for West Sumatra, said the MUI decision on smoking was enough to serve as guidance for Muslims with regard to smoking. "At least, the MUI edict will provide restrictions so that the public would not be free to smoke at will," she said.

        Meanwhile, Chairman of the National Commission for Children Protection (KPA), Seto Mulyadi, said the Indonesian Ulemas Council (MUI)'s edict which banned smoking was aimed at protecting children in their growth process from smoke exposures.

        "Basically the idea is to protect children first. The fact that adult people are also banned from smoking is just another idea which developed further," Seto Mulyadi, popularly called 'Kak Seto' said on Monday.

        "For sure, we are fighting for the interest of children so that they would grow, develop and live a healthy life free from the exposures of smokes which contain addictive substances such as nicotine," the KPA chairman said.' (T.A014/A/HAJM/A/E002) 27-01-2009 20:08:45

INDONESIA MAY EXPORT LOGS

By Andi Abdussalam

Jakarta, Jan 26 (ANTARA) - The Indonesian government is studying the possibility of exporting logs produced from timber estates (HTI) while allowing domestic paper and pulp industries to use wood from natural forests.

        According to the director general for timber estate development of the Ministry of Forestry, Bejo Santoso, the study was aimed at expanding overseas markets and in response to a decline in domestic demand for timber.

        However, pulp and paper industries claim they are running short of raw materials from HTI businesses facing problems in the development of their estates in the past two years.

        In response to the shortage of raw materials, the Forestry Ministry will allow pulp and paper industries to use wood from natural forests if supply from timber estates (HTI) is not available.

        "It is not impossible to extend a policy allowing pulp and paper industries to use wood from natural forests," Forestry Minister MS Kaban said recently.

        The minister did not specify a time frame for the use of wood from natural forests, saying "it depends upon their annual plans."

        The forestry minister earlier issued a decree banning pulp and paper industries from using wood from natural forests. Under the decree HTI companies linked with pulp and paper industries are required to finish planting their areas in 2009 at the latest.

        The Forestry Ministry has projected the timber estates at a total of five million hectares by the end of 2009, while by the end of last year the figure is estimated at 4.3 million hectares.

        According to Minister Kaban, many HTI companies have delayed their planting and industrial forest development activities for fear of being suspected of illegal logging, because in the last two years several HTI companies had been suspected of illegal logging.

        The ministry's director for timber estate development, Bejo Santoso, has a different reason why HTI companies are not able to develop their estates.

        At present a total of 222 timber estate companies have been operating on 9.807 million hectares of land, including 164 companies with a definitive license to operate on 7.1 million hectares, 26 units on 2.03 million hectares with a reserve license and the remaining 32 companies on 300,000 hectares for transmigration purposes.

        Santoso said his office had often received complaints from HTI companies about difficulties in selling their products to domestic pulp industries. "There has been slide in demand for HTI logs," he said.

        PT Kertas Nusantatra, a pulp and paper company, for example, has stopped purchasing wood from state-owned forest plantation firm Inhutani. "The pulp and paper market is delaying demand because of the global economic crisis."

        The slowdown in demand for HTI logs is feared to affect the viability of timber estates and disturb the national forest planting program as a whole. For that purpose, solutions to the problem are needed so that investment in timber estates would continue and support industries at home.

        Santoso said that the solution could be in the form of opening export of logs from timber estates. "Exports can be restricted to certain types of wood and periods of time," he said.

        Data available at the Forestry Ministry show that up to November 2008, wood products from timber estates which were supplied to forest-related industries reached 19.6 million cu meters.

        In the meantime, President Director of state-owned forestry company PT Inhutani IV, Mustoha, said the forestry ministry's plan to open exports for logs would help HTI companies raise their bargaining position in the face of domestic pulp and paper industries.

        "It will increase HTI businessmen's bargaining position. So far, they are facing difficulties in developing their timber estates due to unfavorable prices," he said.

        Asia Pulp&Paper and Riau Andalan Pulp&Paper (Riaupulp) are two pulp and paper giants which have so far absorbed some 85 percent of raw timber produced by HTIs. However, the prices they offered were low, namely at a range of Rp220,000 to 230,000 per cubic meter.

        With this less profitable price, HTI companies are not able to maintain the development and expansion of their estates, Mutopha said.

        "So far, the prices offered by pulp and paper companies are too low but HTI owners have no other choices because there are only two companies which purchase their products," Mostoha said. He said that demand for timber of the world market in the last several years remained high, despite a drop in the price to US$560 per ton.

        Mustoha expressed hope that the Indonesian Forestry Businesses Association (APHI) would play a more decisive role in fixing HTI logs' prices.

        "At a favorable price, HTI companies are expected to be able to resume their planting development programs," he said.
        (T.A014/A/HNG/A/S012) (T.A014/A/A014/A/S012) 26-01-2009 23:01:37

CHINESE CELEBRATE 'IMLEK' TO WELCOME FORTUNES

By Andi Abdussalam

Jakarta, Jan 25 (ANTARA) - Enthic Chinese in Indonesia are celebrating Chinese New Year 2560 on Monday, January 26, with various attractions, colorful decorations and offering or enjoying special dishes to welcome fortunes lying ahead.

        A number of star-rated hotels in Jakarta have been adorned with typically Chinese decorations and presented the 'barongsai' (dragon dance) at leading restaurants offering Chinese dishes.

        Gran Melia Hotel in South Jakarta is offering various Chinese menus and cakes which are usually served by Chinese families during the Chinese New Year (locally called Imlek) celebrations. "We also present barongsai dance performances to enliven this year's celebrations," Dewi Banowati, public relations manager of Gran Melia hotel said.

        Not only hotels, shopping malls also compete to offer the most attractive programs to take advantage of the advent of the Chinese New Year. Chinese traditional dances, operas, wushu and Chinese traditional music performances are also held at shopping malls.

        Besides attractions and art performances, shopping centers also open stalls offering various goods and delicacies normally esnaplly enjoyed during Imlek celebrations such as 'keranjang' cakes, 'moci' cakes, lampions (Chinese paper lanterns), 'chong sam' attires and 'mei hua' flowers.

        Busy Imlek celebrations are not only held in the capital city of Jakarta but also in various other parts of the country. Ethic Chinese citizens visited shopping centers to buy various goods they needed for the special occasion.

        In Pontianak, West Kalimantan, for example, thousands of ethnic Chinese flocked shops and kiosks in China Town on Jalan Gajahmada, to buy various items and fruits which are symbol of good fortune.

        "This year, business is more than usual than last year's," Akhian, 55, a trader who sells various kinds of fruits said. He sold Bali oranges, Super Lokhan Mandarin oranges, Baby mandarin oranges and dragon pineapples. All these types of fruits bear their respective symbols of fortune in welcoming the New Year.

        A couple of Bali oranges bearing Chinese characters meaing 'bring fortune' were sold between Rp30,000 and Rp150,000. Dragon pineapples were sold up to hundreds of thousands of rupiah each, depending on their sizes, shapes and fortune they promise.

        Fruits contain sweet substances, which have their own meaning. "Every kind of sweet has its own meaning. Candied apples, for example, means safety," Ayong, owner of a fruit shop, said.

        He sells various kinds of candied fruits. He could sell about 200 kg of sweets of different tastes with each taste bearing different meanings. "Shining red candied peaches mean longevity," Ayong said.

        Fortunes promised in sweets have also led ethnic Chinese in Makassar, South Sulawesi, to flock to shops selling sugar cane in the runup to the New Year. Sugar cane is selling well in traditional markets in Makassar on Sunday. One such sugar cane may sell at Rp25,000.

        "On regular days, people rarely look for sugar cane. But on the eve of the Chinese New Year, many people look for sugar canes. The most sought ones are those which are still with leaves. This causes their price to rocket up to Rp25,000 per two bars," a trader at Pannampu market in Makassar said on Sunday. Two bars of sugar canes sell only at Rp10,000 on normal days.

        Tajuddin, another merchant at Pasar Terong in Makassar said he had purchased sugar canes directly from farmers since this week to anticipate many buyers who want to welcome the 'Imlek' New year. "Sugar canes are normally selling well in the runup to the Imlek New Year," he said.

        Baba Liong, an ethnic Chinese who lives in China Town on Jalan Somba Opu in Makassar city said based on the tradition passed on from generation to generation, fruits and other sweet crops such as sugar canes were parts of the offerings presented during prayers.

        "Fruits contain philosophical values, which offer hope for a better and sweet future," Liong said.

        Besides sugar canes, bomboo and banana leaves were also selling well in the runup to the Chinese New Year in the South Sulawesi provincial capital. A bundle bamboo leaves is sold at Rp1,000 while a piece of banana leave at Rp1,500.

        The banana and bamboo leaves are used to wrap 'burasa', a cake made of boiled rice mixed with coconut milk. Syerly, who was shopping at Terong Market said 'burasa' was usually eaten with meat or fish by the family at home before or after prayers at a temple.

        Sugar canes as a symbol of fortune are also used by ethnic Chinese in the Indonesian tourist resort island of Bali. 'Penjor tebu' decorations, a kind of adornment made of sugar canes, are put on the fence gates of houses of residents who celebrated the New Year.

        This religious nuance is almost the same as that of the Hindus when they celebrated the Darma (goodness) day against the Adharma (evil) day. The difference between the two is that the penjor during the Hindu celebrations was made of bamboo while during Imlek is made of sugar canes.

        "This reflects a harmonious assimilation and religious tolerance in Bali," Hindra Suarlin of Kuta's Dhamayana Temple, said.

        Sweets as a symbol of fortune are also reflected in what is called 'keranjang' cake. In Kudus, Central Java, this special occasion delicary, which is made of sticky rice flour and sugar, is an indispensible menu offered to welcome the Chinese New Year.

        "Keranjang cake is especially made to be offered during Imlek," Trinawati, owner of a cake shop in Kudus said. She said she always sold keranjang cakes on the event of the Chinese New Year.

        "For the ethnic Chinese community who celebrate the Imlek, serving a keranjang cake is a must and could not be passed without heed," she said adding that she produced some 5 to 6 tons of the special cake carrying a price tag of Rp20,000 per kg at her shop.

        Ethnic Chinese origins observing the New Year use the keranjang cake as offering to their ancestors during prayers on the eve of Imlek and Cap Go Meh (rituals during Night 15).(T.A014/HNG/A/E002)  25-01-2009 23:00:50

CHINESE CELEBRATE 'IMLEK' TO WELCOME FORTUNES

By Andi Abdussalam

Jakarta, Jan 25 (ANTARA) - Enthic Chinese in Indonesia are celebrating Chinese New Year 2560 on Monday, January 26, with various attractions, colorful decorations and offering or enjoying special dishes to welcome fortunes lying ahead.

        A number of star-rated hotels in Jakarta have been adorned with typically Chinese decorations and presented the 'barongsai' (dragon dance) at leading restaurants offering Chinese dishes.

        Gran Melia Hotel in South Jakarta is offering various Chinese menus and cakes which are usually served by Chinese families during the Chinese New Year (locally called Imlek) celebrations. "We also present barongsai dance performances to enliven this year's celebrations," Dewi Banowati, public relations manager of Gran Melia hotel said.

        Not only hotels, shopping malls also compete to offer the most attractive programs to take advantage of the advent of the Chinese New Year. Chinese traditional dances, operas, wushu and Chinese traditional music performances are also held at shopping malls.

        Besides attractions and art performances, shopping centers also open stalls offering various goods and delicacies normally esnaplly enjoyed during Imlek celebrations such as 'keranjang' cakes, 'moci' cakes, lampions (Chinese paper lanterns), 'chong sam' attires and 'mei hua' flowers.

        Busy Imlek celebrations are not only held in the capital city of Jakarta but also in various other parts of the country. Ethic Chinese citizens visited shopping centers to buy various goods they needed for the special occasion.

        In Pontianak, West Kalimantan, for example, thousands of ethnic Chinese flocked shops and kiosks in China Town on Jalan Gajahmada, to buy various items and fruits which are symbol of good fortune.

        "This year, business is more than usual than last year's," Akhian, 55, a trader who sells various kinds of fruits said. He sold Bali oranges, Super Lokhan Mandarin oranges, Baby mandarin oranges and dragon pineapples. All these types of fruits bear their respective symbols of fortune in welcoming the New Year.

        A couple of Bali oranges bearing Chinese characters meaing 'bring fortune' were sold between Rp30,000 and Rp150,000. Dragon pineapples were sold up to hundreds of thousands of rupiah each, depending on their sizes, shapes and fortune they promise.

        Fruits contain sweet substances, which have their own meaning. "Every kind of sweet has its own meaning. Candied apples, for example, means safety," Ayong, owner of a fruit shop, said.

        He sells various kinds of candied fruits. He could sell about 200 kg of sweets of different tastes with each taste bearing different meanings. "Shining red candied peaches mean longevity," Ayong said.

        Fortunes promised in sweets have also led ethnic Chinese in Makassar, South Sulawesi, to flock to shops selling sugar cane in the runup to the New Year. Sugar cane is selling well in traditional markets in Makassar on Sunday. One such sugar cane may sell at Rp25,000.

        "On regular days, people rarely look for sugar cane. But on the eve of the Chinese New Year, many people look for sugar canes. The most sought ones are those which are still with leaves. This causes their price to rocket up to Rp25,000 per two bars," a trader at Pannampu market in Makassar said on Sunday. Two bars of sugar canes sell only at Rp10,000 on normal days.

        Tajuddin, another merchant at Pasar Terong in Makassar said he had purchased sugar canes directly from farmers since this week to anticipate many buyers who want to welcome the 'Imlek' New year. "Sugar canes are normally selling well in the runup to the Imlek New Year," he said.

        Baba Liong, an ethnic Chinese who lives in China Town on Jalan Somba Opu in Makassar city said based on the tradition passed on from generation to generation, fruits and other sweet crops such as sugar canes were parts of the offerings presented during prayers.

        "Fruits contain philosophical values, which offer hope for a better and sweet future," Liong said.

        Besides sugar canes, bomboo and banana leaves were also selling well in the runup to the Chinese New Year in the South Sulawesi provincial capital. A bundle bamboo leaves is sold at Rp1,000 while a piece of banana leave at Rp1,500.

        The banana and bamboo leaves are used to wrap 'burasa', a cake made of boiled rice mixed with coconut milk. Syerly, who was shopping at Terong Market said 'burasa' was usually eaten with meat or fish by the family at home before or after prayers at a temple.

        Sugar canes as a symbol of fortune are also used by ethnic Chinese in the Indonesian tourist resort island of Bali. 'Penjor tebu' decorations, a kind of adornment made of sugar canes, are put on the fence gates of houses of residents who celebrated the New Year.

        This religious nuance is almost the same as that of the Hindus when they celebrated the Darma (goodness) day against the Adharma (evil) day. The difference between the two is that the penjor during the Hindu celebrations was made of bamboo while during Imlek is made of sugar canes.

        "This reflects a harmonious assimilation and religious tolerance in Bali," Hindra Suarlin of Kuta's Dhamayana Temple, said.

        Sweets as a symbol of fortune are also reflected in what is called 'keranjang' cake. In Kudus, Central Java, this special occasion delicary, which is made of sticky rice flour and sugar, is an indispensible menu offered to welcome the Chinese New Year.

        "Keranjang cake is especially made to be offered during Imlek," Trinawati, owner of a cake shop in Kudus said. She said she always sold keranjang cakes on the event of the Chinese New Year.

        "For the ethnic Chinese community who celebrate the Imlek, serving a keranjang cake is a must and could not be passed without heed," she said adding that she produced some 5 to 6 tons of the special cake carrying a price tag of Rp20,000 per kg at her shop.

        Ethnic Chinese origins observing the New Year use the keranjang cake as offering to their ancestors during prayers on the eve of Imlek and Cap Go Meh (rituals during Night 15). ***4*** (T.A014/HNG/A/E002) (T.A014/A/A014/A/E002) 25-01-2009 23:00:50

CHINESE CELEBRATE 'IMLEK' TO WELCOME FORTUNES

By Andi Abdussalam

Jakarta, Jan 25 (ANTARA) - Enthic Chinese in Indonesia are celebrating Chinese New Year 2560 on Monday, January 26, with various attractions, colorful decorations and offering or enjoying special dishes to welcome fortunes lying ahead.

        A number of star-rated hotels in Jakarta have been adorned with typically Chinese decorations and presented the 'barongsai' (dragon dance) at leading restaurants offering Chinese dishes.

        Gran Melia Hotel in South Jakarta is offering various Chinese menus and cakes which are usually served by Chinese families during the Chinese New Year (locally called Imlek) celebrations. "We also present barongsai dance performances to enliven this year's celebrations," Dewi Banowati, public relations manager of Gran Melia hotel said.

        Not only hotels, shopping malls also compete to offer the most attractive programs to take advantage of the advent of the Chinese New Year. Chinese traditional dances, operas, wushu and Chinese traditional music performances are also held at shopping malls.

        Besides attractions and art performances, shopping centers also open stalls offering various goods and delicacies normally esnaplly enjoyed during Imlek celebrations such as 'keranjang' cakes, 'moci' cakes, lampions (Chinese paper lanterns), 'chong sam' attires and 'mei hua' flowers.

        Busy Imlek celebrations are not only held in the capital city of Jakarta but also in various other parts of the country. Ethic Chinese citizens visited shopping centers to buy various goods they needed for the special occasion.

        In Pontianak, West Kalimantan, for example, thousands of ethnic Chinese flocked shops and kiosks in China Town on Jalan Gajahmada, to buy various items and fruits which are symbol of good fortune.

        "This year, business is more than usual than last year's," Akhian, 55, a trader who sells various kinds of fruits said. He sold Bali oranges, Super Lokhan Mandarin oranges, Baby mandarin oranges and dragon pineapples. All these types of fruits bear their respective symbols of fortune in welcoming the New Year.

        A couple of Bali oranges bearing Chinese characters meaing 'bring fortune' were sold between Rp30,000 and Rp150,000. Dragon pineapples were sold up to hundreds of thousands of rupiah each, depending on their sizes, shapes and fortune they promise.

        Fruits contain sweet substances, which have their own meaning. "Every kind of sweet has its own meaning. Candied apples, for example, means safety," Ayong, owner of a fruit shop, said.

        He sells various kinds of candied fruits. He could sell about 200 kg of sweets of different tastes with each taste bearing different meanings. "Shining red candied peaches mean longevity," Ayong said.

        Fortunes promised in sweets have also led ethnic Chinese in Makassar, South Sulawesi, to flock to shops selling sugar cane in the runup to the New Year. Sugar cane is selling well in traditional markets in Makassar on Sunday. One such sugar cane may sell at Rp25,000.

        "On regular days, people rarely look for sugar cane. But on the eve of the Chinese New Year, many people look for sugar canes. The most sought ones are those which are still with leaves. This causes their price to rocket up to Rp25,000 per two bars," a trader at Pannampu market in Makassar said on Sunday. Two bars of sugar canes sell only at Rp10,000 on normal days.

        Tajuddin, another merchant at Pasar Terong in Makassar said he had purchased sugar canes directly from farmers since this week to anticipate many buyers who want to welcome the 'Imlek' New year. "Sugar canes are normally selling well in the runup to the Imlek New Year," he said.

        Baba Liong, an ethnic Chinese who lives in China Town on Jalan Somba Opu in Makassar city said based on the tradition passed on from generation to generation, fruits and other sweet crops such as sugar canes were parts of the offerings presented during prayers.

        "Fruits contain philosophical values, which offer hope for a better and sweet future," Liong said.

        Besides sugar canes, bomboo and banana leaves were also selling well in the runup to the Chinese New Year in the South Sulawesi provincial capital. A bundle bamboo leaves is sold at Rp1,000 while a piece of banana leave at Rp1,500.

        The banana and bamboo leaves are used to wrap 'burasa', a cake made of boiled rice mixed with coconut milk. Syerly, who was shopping at Terong Market said 'burasa' was usually eaten with meat or fish by the family at home before or after prayers at a temple.

        Sugar canes as a symbol of fortune are also used by ethnic Chinese in the Indonesian tourist resort island of Bali. 'Penjor tebu' decorations, a kind of adornment made of sugar canes, are put on the fence gates of houses of residents who celebrated the New Year.

        This religious nuance is almost the same as that of the Hindus when they celebrated the Darma (goodness) day against the Adharma (evil) day. The difference between the two is that the penjor during the Hindu celebrations was made of bamboo while during Imlek is made of sugar canes.

        "This reflects a harmonious assimilation and religious tolerance in Bali," Hindra Suarlin of Kuta's Dhamayana Temple, said.

        Sweets as a symbol of fortune are also reflected in what is called 'keranjang' cake. In Kudus, Central Java, this special occasion delicary, which is made of sticky rice flour and sugar, is an indispensible menu offered to welcome the Chinese New Year.

        "Keranjang cake is especially made to be offered during Imlek," Trinawati, owner of a cake shop in Kudus said. She said she always sold keranjang cakes on the event of the Chinese New Year.

        "For the ethnic Chinese community who celebrate the Imlek, serving a keranjang cake is a must and could not be passed without heed," she said adding that she produced some 5 to 6 tons of the special cake carrying a price tag of Rp20,000 per kg at her shop.

        Ethnic Chinese origins observing the New Year use the keranjang cake as offering to their ancestors during prayers on the eve of Imlek and Cap Go Meh (rituals during Night 15). (T.A014/HNG/A/E002)  25-01-2009 23:00:50

BANKERS SEE PROSPECT OF CREDIT EXPANSION

By Andi Abdussalam

Jakarta, Jan 19 (ANTARA) - Despite the impact of global financial crisis, bankers predict that credits would expand by 20 to 22 percent in the next two or three months following the government's decision on January 15 to announce cuts in fuel oil prices that helps lower inflation.

        "The declining inflation would lead Bank Indonesia (BI) to lower its benchmark rate. We believe that credit interest rates could be lowered in the coming two or three months as there is a clear prospect for that," Kostaman Thayib, retail banking director of PT Bank Mega said here on Monday.

        Given the downward trend in the country's inflation rate, Bank Indonesia's benchmark interest rate could be lowered at a range between 7.5 percent and 8 percent.

        "We are optimistic the BI interest rate will reach 7.5 percent -8 percent at the end of the year and stimulate national economic growth," Kostaman Thayib said.

        Earlier, chairman of the National Banks Association Perbanas, Sigit Pramono said the banking interest rates could be lowered if BI cut its benchmark rate and if it was followed by the lowering of the interest rates of third party funds such as deposit, demand deposit and saving.

        "The cost of funds should go down first before banks could lower the interest rates of their credits. The cost of funds is the interest banks have to pay for third party funds such as deposit and saving," Sigit Pramono said.

        The interest rates of the banking credits will automatically go down if banks' cost of funds is lowered because they are forced to compete with each other.

        According to Kostaman Thayib, banks have now begun lowering their interest rates on third party funds by about 0.5 to 1 percent, and are expected to cut interest rates on credits next.

        "So it is very likely that banks will also lower their interest rates on credits which at present range between 15 percent and 19 percent," he said.

        He said that credit interest rates were expected to go down so that credit expansion could be boosted and economic growth which was set this year at 4.5 to 5 percent could be ignited.

        "We are optimistic that the credit interest rates could be lowered in the coming two or three months," he said. After all, the inflation in January tended to drop which would encourage Bank Indonesia to cut its benchmark rate which at present is about 8.75 percent, Kostaman Thayib said.

        He said that if banks' credit interest rates were lowered, banks would increase the amount of credits for customers by about 20 to 23 percent in the second semester of this year. The economic growth meanwhile will be encouraging if the BI rate is already lowered to 7.5-8 percent at least at the end of this year.

        Kostaman Thayib predicted that the general elections in 2009 would not lead to the rise of turmoil in the market because it was believed that the government would be able to organize peacefully.

        The banker also called on banks to extend more credits if BI cut its rate. With low interest rates, the amount of non-performing loans would also be small.

        "We are optimistic that the credit growth this year will remain big even though banks tend to be prudent in extending credits the first semester," he said.

        After all, given the downward trend in the country's inflation rate, BI's benchmark interest rate may range between 7.5 percent and 8 percent.

        "We are convinced the BI interest rate will reach 7.5 percent -8 percent at the end of the year and stimulate national economic growth," he said.

        He said that BI's inflation target of 6.5 percent - 7.5 percent was realistic enough. "So, the 6.5percent -7.5 percent target is most likely to be achieved," he said.

        Kostaman said inflationary pressures had eased, and this would enable BI to lower its benchmark rate in order to boost economic growth.

        "A further cut in BI Rate is urgently needed as an effort to stimulate the real sector," he said. BI should be able to lower its benchmark rate from the present 8.75 percent to 8 percent in the first semester of this year.

        "To go down further to 7.5 percent, I think BI can do it but there are many conditions that must be met before it can be lowered further to 7.5 percent," he said.

        He said that banks customers were now waiting for BI to lower its rate so that their banks would also follow its step to lower their interest rates. Banks now have not yet cut their interest rates because they are still waiting for the BI rate to go down.

        If banks' interest rates are cut it will boost debtors' demand for banking credits for the expansion or revitalization of their businesses which have not yet running well.

        Perbanas chairman Sigit Pramono however said that banks needed three to six months before they could cut their credits interest rates after BI lowered its benchmark.

        "The best thing to measure before lowering banking credit interest rate is to see businesses in the real sector whether they are now willing to expand or to increase production. If they will, that means that they will need funds from the banks," Pramono said.(T.A014/A/A014/Z002) 19-01-2009 21:50:03

GOVT ENDS EXXON'S RIGHT TO DEVELOP NATUNA GAS BLOCK

By Andi Abdussalam

Jakarta, Jan 17 (ANTARA) - The Indonesian government has urged Petamina to develop Natuna D-Alpha Block soon, assuring the state-owned firm that the American ExxonMobil Oil Indonesia's contract for exploitation of the gas field has expired.

        Energy and Mineral Resources Minister Purnomo Yusgiantoro said that Pertamina might develop soon Natuna D-Alpha block which was estimated to hold around 222 trillion cubic feet of gas reserves.

        "There is no need for Pertamina to cast doubt on the exploitation right of the gas field," the minister said on Friday about the controversy over the right to develop the huge oil block of Natuna D-Alpha in Riau Islands province.

        A limited cabinet meeting chaired by President Susilo Bambang Yudhoyono on Friday asked Pertamina to carry out a feasibility study on the exploitation of Natuna gas field. "So, Pertamina should not be hesitant any longer," the minister added.

        Controversy continues over the right to develop the huge oil block of Natuna D-Alpha in Riau with old contractor ExxonMobil saying it still owns the block.

        Indonesia terminated the contract with Exxon on Natuna D-Alpha block in 2005 because after the contract had run for 20 years the American company was still unable to bring the field to a productive stage.

        The Indonesian government took the decision after negotiations with ExxonMobil failed. Talks with ExxonMobil have stopped on the offshore gas project - estimated to need total investment of about US$40 billion - due to disagreements on how to split gas output.

        Under the old contract, ExxonMobil controlled 76 percent of the shares and Pertamina the remaining 24 percent but the production sharing ratio was unfair as Exxon enjoyed 100 percent and the government zero percent.

        The Natuna D-Alpha block holds around 222 trillion cubic feet of gas reserves, of which about 46 Tcf are thought to be commercially recoverable.

        Yugiantoro said that the contract between the Indonesian government and ExxonMobil has expired on January 9, 2009. Based on the contract, ExxonMobil was required to submit a plan of commitment to continue the development of the Natuna gas field before January 9, 2005. It should enclose a feasibility study as a basis for commercial viability considerations between BP Migas (Upstream Oil and Gas Regulating Body) and ExxonMobil.

        Yusgiantoro said ExxonMobil had submitted a letter of commitment before January 9, 2005 but it did not enclose a feasibility study as a condition to obtain the commercial viability status.

        ExxonMobil however claims its contract on Natuna is still effective. ExxonMobil's vice director Maman Budiman said his side held that the Exxon's contract on Natuna was still effective. Exxon remained committed to develop Natuna efficiently along with Pertamina as stated in the written contract.

        ExxonMobil said it had submitted a plan of development (POD) on December 30 in 2008 before its contract expired on January 9 this year. Based on the production sharing contract the PoD is to be submitted before the deadline of development as a commitment of Exxon Mobil for Natuna development, its vice president Maman Budiman said last week.

        Chief of BP Migas Raden Priyono, however, said he knew nothing about the PoD, adding that the contract of ExxonMobil was already terminated.

        Earlier the government said the contract of the U.S. company had already expired in 2005 and was not renewed as ExxonMobil failed to honor its contract after a renewal made earlier.

        On Friday, the Indonesian government threatened it would file a lawsuit against ExxonMobil if it failed to return all data on Natuna D-Alpha Block development.

        Yusgiantoro said under Law Number 22 of 2001 on Oil and Gas, the results of an exploration and exploitation belong to the government. "So contractors including Exxon may be brought to justice if they fail to submit the data to the government. If Exxon is not serious, I will sue it," he said.

        Regarding the possibility of Exxon seeking arbitration , Purnomo said the government had a strong basis, namely the contract that automatically expired when commercial viability was non-existent.

        Based on the contract, commitment to conduct field development would only be acceptable if BP Migas and contractor jointly agreed to develop economical fields based on a feasibility study. "So, as commercial viability is non-existent the contract automatically expires on January 9, 2005," he said.

        Thus, the government had since last year asked Pertamina to make a feasibility study and submit a proposal on the development of the gas field. The state-owned company has already taken steps including selecting a partner to develop the block.

        It said it would partner with other companies in developing Natuna gas field because the project needed a high technology and a big investment.

        Foreign companies which have expressed interest in Natuna include Total, PetroChina International, Royal Dutch Shell, Start Oil, Petronas, PTT Thailand and PetroVietnam. (T.A014/A/HAJM/A/O001) 17-01-2009 19:51:27

TRANSPORT FARES BEGIN TO DROP IN VAROUS REGIONS

By Andi Abdussalam

Jakarta, Jan 16 (ANTARA) - In response to the government's decision on Thursday to lower the prices of premium gasoline and diesel oil for the third time in less than two months, transport fares in various parts of the country began declining on Friday.

        Economy class commuter trains serving routes within Jakarta and its satellite towns of Bogor, Depok, Tangerang and Bekasi (Jabodetabek) lowered their tariffs by eight to 20 percent on Friday.

        Spokesman of railway company PT KA for region I operation, Ahmad Sujadi, said PT KA had decided to lower its economy class train fares, including fares for air-conditioned (AC) ones, for passengers commuting the Jabodetabek routes.

        The fares for the Jakarta-Bogor route for example, were lowered by 20 percent from Rp2,500 to Rp2000 per passengers for non-AC economy class, while those for the Jakarta-Depok and Jakarta Bogor routes were cut by 8 percent from Rp6,000 to Rp5,500.

        Air-conditioned economy class train fares for the Jakarta - Bekasi and Jakarta - Serpong (Tangerang) were lowered by 8 percent from Rp5,000 to 4,500 percent.

        Sujadi said that fares for executive class remained unchanged, however.

        In the meantime, President Susilo Bambang Yudhoyono on Thursday toured a number of places in Jakarta to inspect the impacts of cuts in the fuel prices which had begun effective on Thursday. The price of premium gasoline was cut from Rp5,000 to Rp4,500 per liter and that of diesel oil from Rp4,800 to Rp4,500 per liter.

        The first location inspected by Yudhoyono was the Kota railway station where the president found that the ticket price of Tegal Arum train for Tegal direction in Central Java, had been lowered from Rp16,000 to Rp15,000.

        After inspecting a number of gasoline refilling stations, the head of state also inspected the Pulogadung intercity bus terminal in East Jakarta to look at the impact of the fuel oil price cuts.

        He said that a number of public transport vehicles had begun to lower their rates following the cuts. "I hope this condition can be improved further in order to increase the people's purchasing power," the president said.

        The president said he had contacted a number of regional administration heads to ask about the lowering of transport fares after the fuel oil prices were cut. "This morning, I called on the mayor of Padang to cut transport fares there. I also did the same thing with Bogor's mayor. I checked with the Land Transport Owners Organization (Organda), and I found that it has lowered its tariffs," the president said.

        He said the fare for public transportation in Bogor, West Java, had been lowered from Rp2,500 to Rp2,000 per passenger. The train tariff at the Kota railway station had been cut by 8 percent as well but the tariff for electric trains had not yet been lowered on Thursday.

        According to Yudhoyono, he had also checked transport fares at the Pulogadung intercity bus terminal in East Jakarta. "Passengers who wanted to go to Madura enjoyed a cut from Rp200,000 to Rp180,000 per person," he said adding that those going to Yogyakarta also paid a lower price as the fare had been reduced from Rp175,000 to Rp160,000 per passenger.

        In the meantime, Bambang Setyo Prayitno, spokesman of PT KA for region II operation in Bandung (West Java) said that fares for economy class intercity trains were lowered by 8 percent. "The cuts in the fares are only for intercity economic class, while those for commercial and for commuters (local train) were not lowered," he said.

        Four economy express trains in Bandung have lowered their fares, namely Pasundan for Bandung-Surabaya route, Kahuripan for Padalarang - Kediri, Kutojaya for Kiaracondong - Kutoarjo and Serayu I, II, III and IV for Jakarta - Kroya. The fares were lowered from Rp41,000 to Rp38,000 for Pasundan, from Rp21,000 to Rp19,000 for Kutojaya and from Rp20,500 to Rp19,000 for Serayu trains.

        In East Java, PT KA spokesman for region VIII operation, Sugeng Prijono said that train fares for economy class from Surabaya to a number of destinations had also lowered their tariff by 8 percent.

        Among trains which have cut their tariffs were Logawa, which had lowered their fares from Rp33,000 to Rp31,000 for the Jember-Purwokerto route, Gaya Baru Malam Selatan cut its tariff from Rp36,000 to Rp34,000 for the Surabaya-Jakarta route and Matarmaja from Rp55,000 to Rp51,000 for Malang-Jakarta and Sri Tanjung from Rp21,000 to Rp20,000 for Banyuwangi - Yogyakarta route.

        In the meantime, the Organization of Land Transport Owners (Organda) for East Java's Jember district, is also considering cutting the fares of its angkot (urban mini-van transport vehicle) by 10 percent. "Organda is now considering a cut for angkot fares by 10 percent after the government cut fuel oil three times," Organda Jember chairman Hari Sardi said.

        Angkot fares were also reduced by 10 percent in Cirebon, a district town in West Java. Cirebon Organda chairman H Iskandar Agus Banaji said that his side had cut the angkot fares in accordance with an agreement his organization had concluded with the local government. "The angkot fares are lowered from Rp2,500 to Rp2,200 for adults while for school children the fares are reduced Rp1,500 to Rp1,400," he said.

        In Banjarmasin, capital of South Kalimantan, the local government and Organda had agreed to lower angkot fares in the city by 8 percent. Romansyah, chief of land transportation affairs of the South Kalimantan's Transportation Service, said that with the lowering by eight percent, transport fares for Banjarmasin-Mertapura, for example, were reduced from a range of between Rp5,640 and Rp8,520 to a range of between Rp5,160 to Rp7,880.

        While many public transport operators have cut their transport fares, many others in a number of regions, such as South Sumatra, West and Central Kalimantan have not yet followed their counterparts in lowering their tariffs.

        Chairman of West Kalimantan Organda Adhie Rumbee said it was difficult to cut transport fares in the province because fuel oil accounted for only a small portion of the basic tariff elements.

        "We still charge our passengers with old tariffs because retailers are still selling fuel oils at old prices," said Edy Nyanyah, owner of a speed boat service in Muara Teweh, Central Kalimantan on Thursday.

        Actually, South Sumatra has lowered angkot fares from Rp2,500 to Rp2,200 but drivers still charged their passengers with the old tariffs. Head of South Sumatra's Tansportation Service Edi Nursalam promised to take actions against errant drivers who violated the decision. (T.A014/A/HAJM/A/S012) 16-01-2009 21:10:34

PEOPLE BEING ALERTED TO DENGUE FEVER THREAT

By Andi Abdussalam

Jakarta, Jan 14 (ANTARA) - Though the number of people suffering from dengue fever in 2008 was lower than in 2007, the public in many parts of Indonesia has been alerted to the possibility of sudden outbreaks of the deadly disease as the epidemic is expected to peak in February.

        "We will give speedy responses to the need of preventing the spread of dengue fever in any region following the outbreak of the disease early this year," the head of the Jakarta Health Office, Dien Emawati, said.

        Data at the Jakarta health office indicated that the number of people contracting dengue fever in Jakarta has risen since last October.

        A total of 956 Jakarta residents were recorded to have been infected in October. The figure increased to 1,052 in November and to 1,577 in December.

        Dengue patients at the Fatmawati Hospital in South Jakarta, for example, had begun to increase as weather conditions became uncertain, Fatmati Hospital spokesman Atom Kadam said on Monday.

        He said the number of dengue patients this week could increase to 78 while the hospital had a capacity to accommodate a maximum of only 70 dengue patients.

        In order to serve the increasing number of dengue patients, Fatmawati Hospital had begun using folding beds but only for 50 patients. If dengue patients continued to increase the hospital would try to borrow beds e from other institutions, he said.

        Actually, the number of dengue cases in Jakarta in 2008 which stood at 27,400 showed a decline if compared with that in 2007, when at least 31,836 people suffered from the fever. The death toll in dengue outbreaks in 2008 which was recorded at 26 had also dropped compared with that in 2007 when the disease killed 86 patients.

        Yet, residents are reminded to remain alert as the degue fever cycle would peak in February 2009.

        Fatmawati Hospital's chief spokesman Atom Kadam predicted the dengue fever epidemic would peak in February. He said the number of patients had begun to increase this month.

        An increase in the number of people contracting dengue fever was also noted in West Java province. At the Al Islam Hospital the number of dengue patients in January was up 100 percent from the figure in December 2007.

        "Up till yesterday, we admitted a total of 581 patients consisting of children and adults," Dr Rita Herawati, deputy director for medical care affairs of the Al Islam hospital, said on Tuesday.

        She said the figure in January was far higher than that in December when there were only 225 patients.

        Herawati even said the public health authorities should declare the outbreaks as "extraordinary incidents" (KLB) and also called on residents to help conduct a prevention program locally called 3-M or three acts to eradicate dengue, namely drain open water tanks, cover clean water and dispose of unused water containers.

        She said preventive efforts were needed in the face of the peak of the epidemic in February.

        Head of the disease prevention and eradication section of the West Java Health Office Dr Fetty Sugiharti said dengue outbreaks in West Java would peak in January and February.

        The health office had data showing that there were 160 dengue cases in 2008 or more than 100 percent less than in 2007 when there were 350 cases.

        An upward trend in dengue cases was also recorded in Banten province. At least 113 people had contracted dengue fever since last November, and one of them had died, a local health official said.

        "The health office has recorded an increase in the number of dengue fever cases in Banten," Tien Suhartini of the Banten health office said here on Tuesday. In Rankasbitung alone, a total of 39 dengue fever sufferers had been admitted to the Misi Hospital in the past two weeks, she said.

        "This hospital has handled 51 dengue fever patients over the past two weeks. Twelve of them are still being intensively treated while 27 others have been allowed to go home," Darya, an administration official of Misi Hospital, said.

        Calls for alertness over the dengue spread were also made by the health office of Kediri district in East Java province.

        "In observing the dengue's annual cycle, we notice there has been an upward trend in dengue cases since October last year," Nur Munawaroh of the health service said.

        She said there were 462 dengue patients in 2008, of whom six died. Most of the cases took place in January, namely 185 but down to 77 in February.

        In Madiun, another distict in East Java, dengue killed eight people in 2008. The chief of Madiun's Health Office, Soelistyo Widyantono, said the 2008 figure was far lower than that in 2007.

        In 2008, there were 289 sufferers of whom eight died while in 2007 there were 421 residents who contracted the disease but there were only seven fatalities.

        Bigger numbers of cases in East Java were recorded in Sumenep, Madura, where there were 570 cases in 2008. It represented a decline if compared with 2007 when there were 971 cases.

        In Sumatra, the number of dengue cases also showed an downward trend, particularly in Medan, North Sumatra province. The death toll in the epidemic in North Sumatra was down from 17 in 2007 to seven only in 2008.

        The total number of dengue cases was 1,917 in 2007 and 1,260 in 2008. "The drop in dengue cases was thanks to the active participation of the locals," Umar Zein, head of Medan's Health Office, said.

        In the Sumatran province of Lampung, at least three residents were reported to have died of dengue fever.

        "Dengue killed its third victim this morning," Darsono, a resident of Sukabumi Indah village, Bandar Lampung city, said last weekend.

        In the meantime, the regional government of West Kalimantan has set aside Rp3 billion in funds to help overcome the spread of dengue fever this year after the number of cases increased to 1,500 in 2008 from 1,350 cases in 2007. In 2008, a total of 30 of the 1,500 patients in Balikpapan died of the disease.

        "We should increase alertness in the face of outbreaks of dengue in January and February," said Dyah Muryani, head of Balikpapan's Health Office. (T.A014/A/HAJM/18:25/A014) 14-01-2009 18:25:15

GOVT TO MAINTAIN EXPENDITURES FOR MINISTRIES

By Andi Abdussalam

Jakarta, Jan 13 (ANTARA) - The government has decided to maintain the ministries and state institutions' expenditures despite changes in the assumptions of the state budget for 2009.

        "The government will maintain the expenditures of ministries and state institutions worth Rp322.3 trillion," Finance Minister Sri Mulyani Indrawati, who is also acting coordinating minister for economic affairs, said after cabinet ministers' meeting here on Tuesday.

        Earlier, chief of fiscal affairs of the Ministry of Finance Anggito Abimayu said the macro assumptions in the 2009 state budget would undergo major changes in line with the change in a number of macro-economic indicators.

        "There will be changes in the rupiah exchange rate and crude price. The rupiah exchange rate was previously set at Rp9,400 per US dollar in the state budget and the crude price at US$80 per barrel. These should be changed," he said adding that the depreciation of the rupiah against the US dollar would have an impact on the state budget deficit.

        However, Finance Minister Sri Mulayani said that despite the change in the posture of the 2009 state budget, the government would maintain expenditures for ministries and state institutions to make sure that they would be able to carry out their programs without interruption.

        "We should learn a lesson from the previous experience when we should delay expenditures until 3 to 6 months each time there was a change in the state budget, because it required a change in the list of development projects (DIPA), she said.

        As an example, the government would not change the Rp207 trillion budget it has allocated for the education sector, which is 20 percent of the 2009 state budget, even though it would constitute 21 percent of the new (revised) 2009 state budget.

        The change in the posture of the 2009 state budget has caused the Rp207 trillion allocation to account for 21 percent of the budget.

        "In this case, if the 20 percent requirement should be met based on the law on the 2009 state budget, the budget for education should be cut by Rp9 trillion. But we have decided not to lower it," the minister said.

        The government is changing the 2009 state budget posture in connection with the change in a number of macro-economic indicators due to global and national economic conditions.

        The 2009 state budget undergoes a change as the government altered assumptions in the country's economic growth, oil prices and the rupiah exchange rate against the US dollar. However, assumptions on inflation, bank Indonesia (BI)'s benchmark interest rate and oil lifting remained unchanged.

        The change in the assumptions of macro-economic indicators brought major impacts to the state revenues and expenditures. "State revenues are estimated to undergo a decline by Rp128 trillion from Rp985.7 trillion to Rp857.7 trillion.

        This is due to lower economic growth, change in the rupiah exchange rate and incentives that the government would provide," the minister said.

        Tax revenues will also decline by Rp54 trillion from Rp725 trillion to Rp671 trillion. While non-tax revenues will become Rp74.51 trillion due to the change in the fuel oil prices and the rupiah exchange rate as well as the decline in state-owned dividends.

        With regard to the government's plan to lower fuel oil prices on January 15, 2009, Anggito Abimayu said that the government will no longer provide a subsidy for premium gasoline though its price is to be lowered further from Rp5,000 per liter to Rp4,500 per liter.

        "The government no longer provides a subsidy for premium gasoline. The fuel oils which are still receiving subsidies from the government are diesel oil and kerosene," Abimayu said here on Tuesday.

        The lowering of the diesel oil price and its subsidy were a policy to provide a stimulus to households and the business world. With the lowering of the diesel oil price, it was possible for the electricity tariff to be lowered so that it would provide a stimulus for the business world and households.

        "So, there will be three kinds of stimuli, namely stimuli for households, for businesses and for infrastructure which is expected to create job opportunities," he said.

        Abimayu said that with the lowering of fuel oil prices, fuel oil subsidy expenditure in 2009 would be lower than the estimate in the state budget at Rp54 trillion. (T.A014/HNG/A/H-YH) 13-01-2009 23:53:50

FLOODS HIT VARIOUS OF INDONESIA

Jakarta, Jan 12 (ANTARA) - The current rainy season has triggered floods and landslides in various parts of Indonesia, killing scores of residents, carrying away residential houses, knocking down bridges, cutting off communications and destroying various other public facilities and crops.

        Meteorological and geophysics officials have warned residents to stay alert over bad weather, storms, gales and high waves as the rainy season is still going on and is predicted to peak in February.

        At least 180 passengers were reported missing on Sunday in Parepare waters, South Sulawesi, when their motor boat KM Teratai Prima sank at 4. a.m due to high waves and bad whether.

        Coordinator of the rescue and search team from the University of Hasanuddin, Salman said that the ill-fated Teratai carried 200 passengers, 18 of whom had been rescued by local fishermen, and 182 still missing.

        On the occasion, another coordinator of the SAR, Arham, said Makassar, South Sulawesi, that besides providing help for victims of the motor boat accident, the team also sent rescuers to West Sulawesi's Polewali district, which was hit by floods on Sunday. The floods killed at least six people with four others missing.

        At least 30 houses were carried away by water currents, Arham, said adding that by Sunday afternoon, a number of government offices, places of worship and school buildings were still inundated by one-meter-deep flood water following overnight heavy rains.

        The floods also cut off land communication between West Sulawesi and Central Sulawesi provinces, he said. "Up till now the joint team of search and rescue workers are still trying to evacuate flood victims and continuing their search for missing residents," he said.

        One of the bridges in Deking village, Majene district, just about 50 km from Mamuju, capital of West Sulawesi, was also knocked down, cutting off land communication.

        Big floods also hit the Indonesian tourist resort island of Bali. The big floods in many parts of Bali from Kuta and Legian tourist resorts to Seminyak and Ubud, Gianyar regency and Denpasar city on Sunday had caused massive material losses.

        The losses were not only facing hundreds of families and their homes inundated, but also souvenir stores, especially those in Kuta, Legian and Seminyak.

        Head of the Badung regency social and manpower agency Tjok Ngurah Bagus Agung said in the middle of flood evacuees in Legian, said the floods had caused massive losses of the people, including to the owners of souvenir stores.

        But the extent of the loss is still being estimated, including the number of families and their property, he said.

        "Even tonight we still cannot give the figures and data. The big floods following incessant heavy rains and the overflow of river Tukad Mati had caused massive material losses," he said.

        Although the flood waters have started to recede, people are still evacuated, as rain started falling again in Bali which may cause another flood disaster.

        Floods also hit rural tourist destinations like the arts village of Ubud, Gianyar regency, especially around River Mumbul, inundating many homes, restaurants and museums.

        In Denpasar, although the flood waters have started receding, a resident was dragged by a strong current, and still went missing.

        In West Nusa Tenggara (NTB) province, one resident was killed when heavy-rain triggered floods hit West Sumbawa district over the weekend. Regional Legislative Assembly chairman H Manimbang Kahariady said Mustafa died because he was shocked with the floods.

        He said that floods hit a number of villages in West Sumba district. At least 160 houses were destroyed, 33 others were carried away by the water current.

        The local meteorology and geophysics office called on ferry operators to keep alert on bad weather due to heavy rains and storms that triggered huge waves up to three meters high.

        In east Java, flash floods hit four sub districts in Jember District, and inundated at least 500 houses.

        The four affected sub districts were Jenggawah, Tempurejo, Silo, and Mayang. In Silo sub district, the flash floods triggered a landslide and destroyed 15 houses and two bridges.

        The inundation also cut off roads connecting Pace and Mulyorejo villages, as well as Jember and Banyuwangi districts.

        On December 2008 floods also inundated hundreds of hectares of rice fields at several villages in Bojonegoro, East Java, following incessant downpours for two days.

        At Sukerojo, flood submerged 107 hectares of 10-20-day-old paddy fields, Sukerojo Village Head, Budi Suprayitno said in Bojonegoro recently.

        In Sumatra, floods also hit Aceh and South Sumatra provinces.

        In Aceh, hundreds of houses in Langsa were flooded after rivers which flow through the city about 470 km west of the provincial capital Banda Aceh had overflowed since last Saturday, spokesman for the provincial social service. Several parts of Aceh Tengah district were hit by landslides following the incessant rains.

        Rain that has been falling since Friday in South Sumatra has caused landslides in a road section between Sekayu and Musi Rawas districts. Deputy chairman of the Regional Legislative Assembly (DPRD), Bihaqqi Sofyan called on the Public Work Services to repair the road the slid section of the road to normalize the traffic immediately.

        Local officials said road sections which were prone to landslides in South Sumatra included those connecting Muara Enim with Tanjung Enim, Lahat with Pagar Alam and Lahat and Tebing Tinggi.

        In Kalimantan, floods hit six districts in South Kalimantan province following incessant rains for a few days. The six affected districts were Hulu Sungai Utara (HSU), Hulu Sungai Selatan (HSS), Hulu Sungai Tengah (HST), Tanah Laut (Tala, Banjar and Tapin, Ariffin, a South Kalimantan provincial administration official said.

        In the meantime, land transportation in a number of road sections which connected Singkawang city with a number of towns in the northern coasts of West Kalimantan were cut off by floods and landslides on Sunday.(T.A014/A/HAJM/13:15/a/f001) 12-01-2009 13:51:05

FUEL OIL CUTS TO HELP LOWER COMMODITY PRICES?

By Andi Abdussalam

Jakarta, Jan 10 (ANTARA) - The government's signal over the weekend to cut subsidized premium gasoline and diesel oil prices in the middle of this month has raised public hope for increased purchasing power and lower commodity prices and transportation fares.

        Yet, concerns also prevail. Despite another cut, prices of goods would remain unchanged as it was shown when the government lowered fuel oil prices twice in December last year.

        It could even turn worse, if the government were forced to lift the gasoline and diesel oil prices again due to unexpected crude price rebound in the world market. It would surely drive up prices of goods and transport fares.

        In such a case, the government's efforts to alleviate the people's burden and increase their purchasing power by cutting fuel oil prices amid the impact of the world economic crisis will fail.

        "It would not be enough for the government to cut fuel oil prices only, and then let the market mechanism decide (lower) prices. It should have a clear scheme to lower commodity prices," Farid Wajdi, director of Consumer Protection and Advocacy Institute (LAPK), said.

        He said that the government had lowered fuel oil prices two times but it had not yet affected the lowering of commodity prices, such as the prices of basic necessaries.

        The fact that fuel oil price cuts have not yet helped lower prices in the market prompted the government to discuss the matter on Friday.

        President Susilo Bambang Yudhoyono, who chaired the cabinet meeting, has earlier said he would study the effect the diesel oil price cuts on the real sector. He expressed concern as the fuel oil price cuts seemed to be unsuccessful in driving down the prices of basic necessaries and transport fares.

        The government in December last year cut the premium gasoline price two times by Rp500 from Rp6,000 per liter to Rp5,000 per liter and diesel oil price from Rp5,500 per liter to Rp4,800 per liter.

        During the meeting on Friday, which was also attended by chairman of the Indonesian Chamber of Commerce and Industry (Kadin) MS Hidayat, the head of state asked the business community to be fair with regard to basic necessary prices and transport fares in light of the domestic fuel oil price cuts.

        "The president asked the business community to be just and fair to the people by lowering the prices of basic necessaries and transport fares," Finance Minister Sri Mulyani said after the meeting.

        The president at the meeting asked Kadin chief MS Hidayat to seriously consider oil price reduction and reflect it in the prices of its products. Oil price cuts should obviously have reduced the business community's production costs.

        Mulyani said all parties, the business community in particular, should be transparent and serious in helping realize the government's desire to have the basic necessary prices and transport fares in the country lowered.

        "The government has lowered domestic fuel oil prices and the business community should have reduced the prices of other commodities accordingly without any excuse," Sri Mulyani said.

        According to MS Hidayat, commodity prices could be lowered by 10 percent if the government cut further the oil prices by Rp500. He said that if the Kadin proposal was accepted and the fuel oil prices were lowered, then there would be possibilities for the prices of a number of necessaries and transportation fares to go down by about 10 percent.

        "I have no authority to say that the government is going to announce the price decrease but if I look at its 'body language' it is likely that the government will accept Kadin's proposal," Hidayat said after attending the meeting adding that the government would likely announce it on January 15, 2009.

        Kadin was proposing that the government cut the prices of subsidized premium gasoline and diesel oil to Rp4,500 per liter and Rp4,300 per liter respectively.

        Vice President Jusuf Kalla indicated the government would announce another cut in domestic fuel oil prices but he did not mention any figures.

        "God willing, the prices will be lowered again on January 15. The government is committed to alleviating the people's burden in line with the current world crude price," the vice president told a press conference.

        Hidayat said that a cut by about Rp500 per liter of the fuel oil prices followed by the lowering of transportation fares would help maintain or even increase the people's purchasing power in the current economic crisis.

        In the meantime, Transportation Minister Jusman Syafii Djamal said public transport fares were expected to go down by 10 percent if the government lowered fuel oil prices in the middle of this month.

        "Transport fares have previously been lowered by about 3 to 6 percent following cuts in premium gasoline and diesel oil prices in mid December last year. If the oil prices are lowered again, transport fares can be cut father by about 10 percent," the minister said.

        He said President Yudhoyono had asked him about the possibility of lowering transport fares if the government lowered gasoline and diesel oil prices.

        Therefore, the minister called on public transport owners to lower their fares soon after the government cut further fuel oil prices. "State-owned transportation firms such as the DAMRI for buses, ASDP for ferries, and PT KA for trains have to pioneer the lowering of transport fares," the minister said.

        So far, fares for economy class inter-city buses could easily be lowered but the fares for city mini buses (angkot) are difficult to lower because of the drivers' errant attitudes.

        "The drivers directly feel the impact of increasing prices of spareparts such as tires in Indonesia which are relatively higher than those overseas," the minister said.

        The government and relevant vehicle owners associations are trying to find a way to provide incentives for lower prices of automotive spareparts, including tires. (T.A014/HNG/A/E002) 11-01-2009 21:38:19

RI TRYING TO EXPAND EXPORT MARKETS AMID GLOBAL CRISIS

By Andi Abdussalam

Jakarta, Jan 9 (ANTARA) - In the wake of predictions that its exports will decline due to the global financial crisis, Indonesia is trying to diversify its export markets and launch diplomacy overseas to win new export destinations.         "In the face of the negative impact of the global crisis such as reduced demand for our export goods, the government will pursue a market-seeking diplomacy as a top priority in 2009," Foreign Minister Hassan Wirayuda said.         Indonesia's efforts to expand markets are made in line with predictions that its export performance will slow down in 2009.         The main problems facing the country's exports in 2009 would be the declining demand such as in the US, Japan and the European Union, rising protectionism in the destination markets and declining prices of commodities.         According to Bank Indonesia (BI) Deputy Governor Hartardi, exports and services would fall steeply to a growth of 4.3 percent to 6.1 percent in 2009 from 13.7 percent in 2008.         In the period of January-October, 2008, Indonesia's total exports reached a value of US$ 118.5 billion. The number represents an increase compared to the same period in 2007.         Trade Minister Mari Pangestu said the country's non-oil and gas exports, for example, would grow maximally 8.0 percent in 2009 as the world's economic growth weakened as a result of the global financial crisis.         She said the 8.0 percent figure could be achieved if the world trade grew by 4.4 percent. If the world trade grew only 3.6 percent or 3.4 percent Indonesia's non-oil and gas exports were predicted to grow only six percent and 4.3 percent.         The 4.3 percent - 8 percent non oil/gas growth projection may still change in view of export market conditions and the competitiveness of domestic industries.         "Whether the change will be rapid or slow depends upon the development of the current crisis or whether the crisis could be overcome quickly or otherwise. If it cannot be controlled the projection may still change in every country," the head of the trade ministry's research and development agency, Muchtar, said.         He said growth in the exports to the main destinations such as the US and Japan, would be lower than this year's 11 to 12 percent respectively.         "For the main export destination countries like the US and Japan the growth will not be far from 6.0 and 5.57 percent," he said.         As the prospect of exports is bleak in 2009, the Indonesian Chamber of Commerce and Industry (Kadin) suggested that domestic market should be empowered.         "Our main problem is the deteriorating performance of our exports. That is the problem which has to be solved. The government should focus its attention on the domestic market and on supporting labor-intensive industries, including the support industries at home," Kadin Chairman MS Hidayat said.         He said what needed to be urgently done to create alternative markets for Indonesia's exports was empowerment of its domestic market so that this market could absorb the commodities otherwise intended for export.         According to the Kadin chairman, domestic market should be empowered because it would be difficult for the government to implement its plan of expanding to new export markets.         "We would have to set up networks in the new export markets. And our banking system must also match with those in the new markets. And accomplishing all this will not be easy," he said.         But through optimal foreign diplomacy, Foreign Minister Hassan Wirayudha hoped new markets could be created overseas.         "We will seek to gain access to new non-traditional export markets such as Russia, East Europe, Africa and Latin America," Wirayuda said.         The export market expansion or diversification effort is important to ensure the continuity of Indonesia's export business as one of the contributors to its economic growth.         Therefore, the minister said, Indonesia's diplomatic activity which had generated political closeness with other countries should be turned into economic benefit and be strengthened further in order to help the government's tasks in promoting the country's trade, investment, tourism and manpower potentials.         Thanks to diplomacy, Indonesia would at least have easy access for exports, for example, to the Middle East after it reached an agreement with Saudi Arabia.         "Our exports will increase thanks to cooperation," secretary general of the National Accreditation Committee (KAN) Sunarya said after signing an agreement with a Saudi Arabian Standards Organization (SASO) here Thursday.         "If our products do not have a national standardization (SNI) and follow the qualifications in SASO, the products might have to be tested according to SASO regulations and earn a logo to be accepted in Saudi Arabia," he said.         The organization has 14,600 product standards according to international standards which are accepted to all Gulf countries. Some products such as clothes, household electronic devices, and automotive products have more prospects in the Saudi Arabian market.         Actually, Indonesia has made expansion in new emerging markets. According to Trade Minister Marie Pangestu, Indonesia's exports to Europe in 2003 accounted for 19 percent of its overall exports but the figure dropped to 1.5 percent in 2008 while its exports to the United States fell from 15 percent (of overall exports) in 2003 to 11.3 percent in 2008.         "The reductions in these overseas market shares indicate that there has been market diversification in Indonesia's exports which go to newly emerging markets such as China where Indonesia's market share increased from 6 percent to 8 percent, India from 3 percent to 6 percent and in ASEAN countries," the minister said.***2*** (T.A014/A/HAJM/A/S012) 20:15/... ) 09-01-2009 20:37:42