| By Andi Abdussalam |
Jakarta, July 30 (ANTARA) - Indonesia, which has so far sent some six million migrant workers overseas and received an average annual remittance of Rp100 trillion, has recently received requests for more workers from a number of employer countries. The recently revealed requests for immediate employment came from the Middle Eastern countries where about 1.5 - 1.7 million Indonesian migrant workers are already working. Kuwait, one of the Middle Eastern countries, for example, has asked for an immediate placement of at least 1,600 migrant workers in different fields. Requests also came in from South Korea which needs some 10,500 Indonesian migrant workers and Germany which is ready to give jobs to about 7,000 Indonesian nurses. According to the Indonesian Embassy in Kuwait, about 30 major companies in Kuwait need about 1,600 Indonesian professional workers in various fields. "A total of 30 leading companies in Kuwait have expressed their desires to recruit 1,687 professional workers from Indonesia to be employed in various fields," the embassy said in press statement made available to ANTARA last week. The embassy has on earlier occasions facilitated a business meeting between major Kuwaiti companies and the National Agency for Placement and Protection of Indonesian Migrant Workers (BNP2TKI). Companies attending the business meeting included M.H. Al Shaya, Kuwait Automotive Imports Company, Radisson Blu Hotel, Kout Food Group, McDonalds Kuwait, Al Ghanim Industries, Carrefour, Mustafa Karam & Sons Company and Costa Del Sol Hotel. These Kuwaiti companies expressed their need for workers, some even wanting to recruit before the end of the current fasting month, the embassy said. According to the report, they need about 100 employees in the fast food sector, 200 retailers at hypermarkets, 409 workers in the manufacturing field, 300 transportation bus drivers, 150 welders, 163 automotive technicians and 365 nurses. In his address, Indonesian Ambassador to Kuwait Ferry Adamhar said that Indonesian workers working in mainstream sectors are spread out across various parts of the Middle East, particularly in the Gulf countries. "Employer companies have expressed desires to recruit Indonesian professionals after seeing their hard work and dedication," he claimed. South Korea, which has so far absorbed 39,652 Indonesian migrant workers, has also asked for 10,500 additional migrant workers from Indonesia. "South Korea needs 10,500 workers from Indonesia in 2012, and 5,108 Indonesian workers have been sent to South Korea as of July 5 this year," said Jumhur Hidayat, the head of the National Agency for Placement and Protection of Indonesian Migrant Workers (BNP2TKI), in Aceh province over the weekend. Jumhur said Indonesia's quota for placement in South Korea reached 10,500 this year. Workers will be employed in the industrial, manufacturing, service and agriculture sectors. The BNP2TKI head said that besides Kuwait and South Korea, Germany has also expressed its need for migrant workers from Indonesia. Germany needs some 7,000 workers, particularly nurses. "Thus, Indonesian migrant workers, particularly from the nursing and midwifery sector, have a great market potential overseas. What remains to be done is to prepare them and to be ready to bridge the overseas demand for nurses and midwives," Jumhur said. After all, nurses from Indonesia are known for their unmatched quality. This has been proved in Japan where Indonesian nurses excelled their Philippine counterparts in state exams. "Many Indonesian and Filipino nurses work at Japanese hospitals and nursing homes for the elderly people," Jamhur said in Pekanbaru at the Riau province on Monday. He said that the results of a national exam conducted by the Japanese government on March 26, 2012, revealed that a total of 69 (34 nurses and 35 care workers) Indonesian nurses passed the exam in comparison to only 13 nurses from the Philippines. The nurses attended the exam following a year¿s work experience at Japan. He said that the placement of nurses in Japan was through a government-to-government (G-to-G) program carried out via the Indonesia-Japan Economic Partnership Agreement (IJEPA) signed by President Susilo Bambang Yudhoyono and Japanese Prime Minister Shinzo Abe at Tokyo in November 2006. BNP2TKI on behalf of the Indonesian government followed up on the agreement in cooperation with the Japan International Corporation of Welfare Services (JICWELS) which represented the Japanese government. Through the cooperation, BNP2TKI was asked to prepare 1,000 nurses for work in Japan. "We will sign a new agreement if the 1,000 quota is already met following the continuation of the program," Jumhur said. He said that the agency¿s main task was to seek employment programs for migrant Indonesian workers overseas. In line with this, the agency was seeking and securing overseas employment opportunities for skilled Indonesian migrant workers. "While the need for meeting the overseas employment market is very urgent, the supply of workers is still being furnished," he said at a general lecture to nursing students held in the Imelda Indonesian Workers General Hospital at Medan, North Sumatra. Jumhur said BNP2TKI has appointed a foreign and promotions cooperation deputy to seek and secure employment opportunities while mapping out employment markets overseas for the domestic workers. The BNP2TKI chief hoped that the many institutes of higher learning in Indonesia and other educational and skill institutions would continue to teach techniques that are used abroad. Moreover, migrant workers have proven their ability to mitigate the impact of global economic crisis in the country and have as a result sent an annual remittance of about Rp100 trillion. Around six million Indonesian migrant workers work in 116 countries with remittance over Rp100 trillion annually, Jumhur said. But this year, according to Manpower and Transmigration Minister Muhaimin Iskandar, remittances from Indonesian migrant workers abroad are estimated to reach only Rp65 trillion (more than US$6.5 billion). "The figure is taken based on data from banks and non-bank financial institutions only," he said while breaking his fast with migrant workers at the Sahara Lestari training center for overseas workers in Condet, East Jakarta, on Sunday.***2*** |
Senin, 30 Juli 2012
MORE INDONESIAN MIGRANT WORKERS NEEDED OVERSEAS
Sabtu, 28 Juli 2012
FREE IMPORT DUTY NOT TO SOLVE SOYBEAN PROBLEM
| By Andi Abdussalam |
Jakarta, July 28 (ANTARA) - Fluctuating prices will either 'suffocate' consumers or debilitate farmers if the prices of commodities such as for soybean are not ideally balanced. This price fluctuation has been witnessed lately with soybean, which is the raw material used for the production of tempe (soybean cake) and tofu, considered the two most popular Indonesian side dishes, especially amongst the poorer consumers of Indonesia. In the last three days however, tempe and tofu have virtually disappeared from the traditional markets and eateries following steps taken by tempe and tofu producers to stop the production in protest of skyrocketing soybean prices. In response to the problem, the government has decided to waive the import duty on soybean, since about 70 percent of the commodity is imported. Yet, another problem seems to have emerged from this redressal as critics claim that the move might adversely affect farmers at home. Though the exemption of import duty will soon scale down the price of soybean in the country and help tempe and tofu producers resume their business, this move is expected to lower the price of soybean from about Rp8,000 per kg to Rp7,600 per kg. According to Deputy Minister for Agricultural Affairs Rusman Heriawan, the price of soybean for tempe and tofu producers is currently as high as Rp8,000 per kg which is putting an undue burden on the lower class people. "The estimate of a price decline to Rp7,600 per kg is still categorically high particularly in East Java because the average prices are usually between Rp5,000 and Rp6,000 per kg," he said during a soybean grand harvest in Pager Ngumbuk village at the Sidoarjo district of East Java on Saturday. The deputy minister suggested that the people respond wisely to the government's initiative to waive soybean import duty from five percent to zero percent beginning next August. "The government's decision to free the importation of soybean from import duty does not imply that the government is bowing to price pressure because the policy will be applicable only for a short term," explained Rusman. Therefore, he said his side will continue to monitor the implementation of the policy to judge whether it has an effect to restore the price of tempe and tofu, he asserted. "On the other hand, we do not restrict the importation of soybean because the nation's soybean production is not high enough," he added. Over the last five years, soybean production has increased by about 4.38 percent, while productivity has increased by 1.04 percent and land expansion by 3.1 percent respectively. But the increase in the production over the past few years is still below the production of soybean seen in the early 90s. Indonesia could only produce 851,286 tons, or about 29 percent of the demand during the same year. So, Indonesia has had to import 2,087,986 tons. Data at the Central Bureau of Statistics (BPS) puts the country's need for soybean in 2012 at 2.2 million tons, of which 83.7 percent was for food, 14.7 percent for soy sauce and other industries, 1.2 percent for seed and 0.4 percent for animal feed. However, the price of soybean has continued to increase of late because of the commodity¿s imports. "The increase in the price of soybeans in the world market has significantly affected the price at home, since about 70 percent of the country's need for soybeans is imported," said Trade Minister Gita Wirjawan while speaking to the press. The price of soybean in recent days has reached Rp8,000 per kg, rising from a previous high of Rp5,000 to Rp6,000 that has triggered a three-day strike among tempe and tofu producers, causing the disappearance of this popular staple from the nation¿s dining tables within the last few days. Therefore, the government is taking steps to deal with the soybean crisis that has led to a scarcity of tempe and tofu. According to Coordinating Minister for People's Welfare Agung Laksono, the government had already waived import duty on soybean, which had led to an increase of the commodity's price by 11 percent. The state-owned logistics agency Perum Bulog will, however, resume its role as soybean distributor. "We are also planning to let Kopti [Indonesian Tofu and Tempe Cooperative] and Primkopti [Premier Indonesian Tofu and Tempe Cooperative] import soybean directly," Agung said after visiting a tempe factory in Bogor. Yet, the government's decision to exempt the import duty also drew criticism from certain parties, including former president Megawati Soekarnoputri. "The exemption of import duties will allow the importers to import the commodity at will," stated Megawati Soekarnoputri after breaking her fast on Friday. She said that although the importers might bridge the domestic demand with big volumes of imported soybean, the country's goal of attaining self-sufficiency in soybean production might suffer a setback. Food resilience, particularly with regards to soybean, can only be achieved if the country's own production machinery is able to meet its domestic demand. "If the government is serious, I think Indonesia can achieve its food resilience", the former president said. The same opinion was also articulated by Munif Ghulamahdi MS, a researcher and lecturer of the Bogor-based Institute of Agriculture (IPB). He said that the government's plan to waive the import duty on soybean was not the best solution. "This solution will harm the interest of farmers. Once the import duty is eliminated, imported soybean will flood Indonesian markets and trigger down the price of locally produced soybean," the IPB lecturer explained. He said that though the current emergency situation demands the exemption of the import duty, this step should not be made for the long term because it could threaten the existence of local farmers. Munif said that the present price level of Rp6,000 per kg had given the impetus and could revive the farmers¿ enthusiasm to produce soybean domestically. "However, if the country is flooded with imported goods, it will automatically drag the price down. And in the next grand harvest, the farmers might suffer worse losses," he concluded. ***2*** |
Selasa, 24 Juli 2012
GOVT TO BEGIN MASS PRODUCTION OF ELECTRIC CARS IN 2014
| By Andi Abdussalam |
Jakarta, July 24 (ANTARA) - After several trial runs and following a minister driving a 'home-made' electric car, the government decided on Monday to begin mass production of electric autos in 2014. To that end, the government will soon set up an electric automotive technology development center, issue regulations on incentives, and establish other facilities for manufacturers that would boost production of electric cars. The incentives will be in the form of import duty exemptions and free value added taxes for the main components of electric autos, such as batteries. "We have decided to set up an electric automotive and technology development center to boost the production to 10,000 electric cars in 2014," the Coordinating Minister for Economic Affairs said on Monday. Coinciding with the Nation's Technology Awakening Day, the government will hold a show in Bandung, West Java on August 30, 2012, to display products that have successfully been produced, such as cargo transportation vehicles, buses, city cars and others. The Indonesian Institute of Sciences (LIPI) has produced various types of electric buses and city cars with models included at scale 7 of the nine technology readiness levels. The technology center will become the main design of electric auto components produced by Indonesians. "The center will be under the direction of several government institutions, namely the Research and Technology Ministry, Industry Ministry, Transportation Ministry and the Ministry of State-owned Enterprises," Hatta said after attending a meeting with government officials to discuss the nation¿s electric car program. This is the team that will take full responsibility for the implementation of the program until mass production begins, hopefully by 2014. "We will act faster and, if possible, mass production will be running well by 2014. We have to provide incentives and legal protection for the industry, which will be developed through state-owned firms and private companies," said Hatta. Minister for state enterprises Dahlan Iskan said earlier that Indonesia hoped to start mass production of electric cars in 2013. However, certain necessary regulations are needed before mass production begins, as electric cars use no oil fuel or cylinder engine, said Dahlan, who has recently been driving an electric car to his office. Regulations are needed, such as for motor vehicle licenses, taxes and certificates of ownership, he said after driving an electric car in a trial test from the workshop in Depok to the office of the research and technology minister in Jakarta, covering a distance of around 25 kilometers. Earlier, the government was urged to provide incentives for development of electric cars to be included in the policy of "low carbon emission project" (LCEP). Leading automotive observer Suhari Sargo said that in order to lure investors, the government needs to offer attractive incentives. "If successful, the national car product will be the trend setter for the development of cars with low emissions to support the LCEP program," Suhari said. The success in the implementation of the project will largely depend on the availability of local components. In addition, there should be after sales services provided by producers. Marketing is not easy as most people still favor conventional cars that include the availability of supporting facilities, according to the automotive observer. Further, electric cars could be a second alternative, especially for use as city transport, he said. According to Hatta Rajasa, besides regulations on legal protection, the government will also issue regulations on incentives. The incentives that will be provided will be in the form of import duty exemptions, free sales taxes on luxury goods, tax reductions and free import duties for capital goods imported for the development of electric cars, such as batteries. "Incentives will be provided for main components, such as batteries, until we are able to produce our own national batteries," the chief economic minister asserted. The government is planning to develop three types of electric cars, including minivans for public transportation, vehicles for cargo transportation and city cars, with priority of development given to the city cars. "The production of city cars is relatively easy. We have produced the prototype of the bus, but the problem with it is its battery. The battery can run out of electricity quickly when the bus is traveling on an uphill road. Its electricity system is not reliable. We have to solve this one," Hatta explained. Regarding prices, the chief economic minister expressed his hope that it would be cheaper than the previous estimate, so that it would serve as a popular car, called "the people's car". "The price of an electric car should be lower than that of the 'Avanza' minivan, which is used by many circles in Indonesia," Hatta said. He added that the government has the intention of launching an electric car because it has more potential to be developed on a massive scale than cars that consume fuel oils. "We call it a national electric car because its 'chip' and 'muscles' are produced by the nation's sons. We hope its local components will account for 70 percent," he said. He also said he hoped that with a lower price, which is lower than the Avanza, the electric car will attract the public because it does not use fuel oils. Yet, Hatta has not figured out the price of an electric car because it would be adjusted to the types that the government will develop. Earlier, Minister Dahlan Iskan predicted that the price of an electric city car, namely the Ahmadi 5.0 trade mark type, would be about Rp200 million each. At present, besides the prototype of the trademark "Ahmadi Mesin 5.0", which is designed by Desep Ahmaid, four other prototypes of electric cars have also been produced in the same types as Carry, Avanza, Yaris and Ferrari cars.***2*** |
Senin, 23 Juli 2012
CAR SALES EXPECTED TO DROP IN SECOND SEMESTER OF 2012
| By Andi Abdussalam |
Jakarta, July 23 (ANTARA) - Despite witnessing an increasing sales trend during the first semester, automotive manufacturers have predicted that domestic car sales in the country will fall in the second semester of this year. Manufacturers predict that car sales will decline, following a decision by Bank Indonesia (the central bank) to raise the down payment for cars purchased on credits. However, domestic car sales in the second semester of the year are expected to fall by 10 percent due to Bank Indonesia's rules that stipulate a minimum down payment of 30 percent for new vehicle loans. "Bank Indonesia's new rules on down payment for motor vehicle loans will have an impact on car sales in the second semester," said co-chairman of the Indonesian Motor Vehicle Industry Association (Gaikindo) Johnny Darmawan. The central bank, fearing an increase in nonperforming loans amid global financial crisis, has raised the down payment to 30 percent from its nominal 10 percent charges seen in the last month. The central bank said that the regulation is aimed at ensuring greater prudence and to create healthy competition in the credit market. Around 80 percent of owners in the country purchase cars on credits from banks and financial companies. These loans are expected to be repaid via installments. So far car sales have dropped between 10 and 25 percent, the Gaikindo chairman explained. According to Sudirman Maman Rusdi, co-chairman of Gaikindo, the association has revised its car sales target down to 875,000 units for this year from the previous 948,500 units set earlier. In the first semester of this year, domestic car sales reached a record of more than 500,000 units. Yet the second-semester car sales might drop by 10 percent, particularly following the Idul Fitri festivities that will fall in the fourth week of August. Car sales, however, would still record growth in July due to a rising demand ahead of the festivities, he said. "But starting September, car sales are likely to fall," added Johnny, who is also the president director of PT Toyota Astra Motor. The impact of the new ruling effective June 15, 2012 would be felt in the second semester, while car sales in June would remained unaffected, he said. "In fact, car sales in June hit a record of 98,000 units, up from the previous month. This was because many sales purchase contracts were made before the new ruling on the down payment for car loans took effect," he was quoted as saying. Johnny noted that the new ruling has had an impact on motorcycle and heavy-duty equipment sales which dropped by around 30 percent. Jodjana Jody of PT Astra International Tbk, the country's largest automotive company, said that 70 percent of prospective car buyers, with an estimated expenditure of below Rp150 million per unit, might delay their purchases due to difficulties in raising cash for the down payments. The increase in the down payment has also caused a setback in the market for commercial cars and trucks. Jodjana said that 90-95 percent of Toyota trucks of PT Astra are sold on credits. While domestic car sales are expected to decline in the second semester, production in the first semester surpassed the average monthly capacity of 75,000 units, reaching as high as 88,904 units. "Car production in the first semester of this year reached 533,429 units with production in June estimated at 103,000 units. Monthly car production is meanwhile, only at 75,000 units out of a total capacity of 900,000 units a year. This means that car production during the first semester of this year has been above average by about 18.54 percent," said Gaikindo co-chairman Yongki D Sugiarto. Domestic car sales actually increased in the first semester of the year. The sales of commercial pick-up cars in the first semester of 2012 rose by 20.56 percent to 87,356 units from the 72,404 units seen in the same period of the previous year. "The sales of commercial cars for the pick-up trucks in the January-June 2012 period reached 87,356 units with an increase of 20.65 percent seen in the same period of the previous year with a total of 72,404 units," remarked Yongkie D Sugarto on Sunday. Data at Gikindo showed that Daihatsu's market share for pick-up cars accounted for 22.04 percent. Head of Domestic Marketing Division of PT Astra Daihatsu Motor (ADM), Rio Sanggau, said that the sales of his company¿s Daihatsu Granmax pick-up cars were recorded at 19,260 units in the first semester of this year. "The sales of Granmax pick-up cars from January to June 2012 increased by 5,742 units to a total of 19,260 units from the 13,518 units seen in 2011," he divulged. In the meantime, Suzuki has dominated the pick-up market with a market share of 29.77 percent. The sales of Suzuki pick-up trucks in the first semester of this year reached 26,010 units with an increase of 40.46 percent compared to the 18,517 units sold during the corresponding period last year. PT Suzuki Indomobil Sales said that it posted a 24.8 percent increase in car sales with 12,121 units accounting for June sales and with 9,712 units sold during the previous month. Davy J Tuilan, the sales director of the Suzuki car agency in the country, said that the sales in June created an all-time monthly record after last month's peak of 9,712 units. The sales in June represented a 68 percent year-on-year increase, Davy noted. The sales were dominated by new Suzuki city car Ertiga, which contributed 36.3 percent of the total company sales, followed by Suzuki van Carry Futura, which accounted for 34.2 percent. Other Suzuki cars sold in the country include APV, Splash, SX4, Swift, Estilo and Vitara. Suzuki has the fourth largest market share in the country following Toyota, Daihatsu and Mitsubishi. At the same time, the sales of Ford cars shot up by 51 percent in June, thereby recovering from a setback witnessed in the total sales during May. The all-new Ford Fiesta contributed 499 units to the total sales in the month of June, the statement said. "We will produce more Fiesta variants to provide the consumers with a wider alternative," said the company's president Bagus Susanto. Bagus said that significant sales of 394 units were also recorded for the Ranger variant in June. He further added that orders for 1,000 more units will soon be released towards the end of July. Car maker PT Mazda Motor Indonesia (MMI) sold a total of 4,836 cars in the first semester of 2012, with the Mazda 2 variant contributing nearly 60 percent to the overall sales, MMI marketing manager Astrid Ariani said here on Friday. The BT-50 and CX-5 variants further contributed to the first-semester sales. Astrid said Mazda recorded its highest sales since inception with a total of 1,074 units in June 2012. She said Mazda would try to achieve the 2012 sales target through three similar variants, namely Mazda 2, Mazda CX-5 and BT-50. Sole Agent PT Hino Motors Sales Indonesia (HMSI) set itself a sales target of 35,000 units in 2012. Sales and Promotion Director of HMSI Santiko Wardoyo recently announced that his company has sold 25,400 units in 2011 in Makassar, thereby grabbing 55.8 percent of the commercial vehicle market share. |
Sabtu, 21 Juli 2012
ONLY POLICE CAN CONDUCT SWEEPING OVER VICES
| By Andi Abdussalam |
Jakarta, July 21 (ANTARA) - An Islamic organization and the Indonesian Police Watch (IPW) have gone on record saying that fringe organizations should not conduct operations to fight against vices during the fasting month of holy Ramadan. In previous years, certain mass organizations often took the law in their own hands, raiding and vandalizing the properties at night clubs, massage parlors and other night entertainment centers in a bid to weed out vices during the holy month of Ramadan. According to Nahdlatul Ulama (NU), the biggest Islamic organization in Indonesia, fighting against such vices during the fasting month is the responsibility of police. "It is the responsibility of the police to do that. There is no merit in Muslims taking over the task from the police. What we can do is to help control, make suggestions and assist police," said Miftachul Akhyar, the chairman of the lawmaking body of NU for East Java here on Saturday. Akhyar, who is the leader of Miftachussunnah Islamic Boarding School, said that operations against such entertainment centers by an Islamic organization would leave the impression that Muslims interfere in the affairs of the law enforcers. "NU will not accept these raids as mistakes, but we will have to see things in the right context. It is not impossible for other parties to use these operations to create provocations in an effort to corner Islam," Akhyar said. The same idea was also raised by the Indonesian Police Watch (IPW). It said that the National Police must have the courage to take firm actions against fringe organizations that raided or conducted vigilante operations against night spots, which operated during the holy Ramadan month. "But police must also have the will to act upon and arrest owners of night spots that operate during the fasting month," said Neta S Pane, the presidium chairman of IPW. If police compromise with mass organizations during the vigilante raids or with nightclub owners, it will make itself the target of public criticism. "IPW avails itself to remind police that vigilante justice, demonstrations and protests conducted at night are against the law. Therefore, the National Police must have the guts to field its mobile brigade and anti-riot forces to stop mass organizations from conducting such sweepings," said Neta. If the mass organizations turn anarchic, police should have no doubts before using rubber bullets, after all, police has resorted to using rubber bullets to disperse student rallies in the past, Neta said. "IPW also asks regional governments to be consistent with and willing to assist police in overcoming potential conflicts and security threats during the fasting month," Neta stressed. He said that before mass organizations take the initiative to launch raids, the public order police (Satpoll PP) should take prior actions and launch operations at locations such as at illegal entertainment centers. "This is because based on the IPW monitoring, about 70 percent of the night spots continue to operate during the fasting month. Although these watering holes are seemingly closed from the front, they still continue their backend operations," Neta said. National Police Chief General Timor Pradopo said his side was ready to take firm actions against mass organizations, which conducted unauthorized raids on night spots or other places in order to fight the social vices, since such operations violated the law. "If they violate the law, they will be acted upon. But we should take a persuasive approach in the first place. In essence the problem must be settled by police but we should also cooperate with the people. During the fasting month, we will cooperate with religious leaders or ulemas," the police chief said in East Java during the launch of an East Java Regional Police program. Therefore, the police chief called on these fringe organizations to not launch unauthorized raids over entertainment centers during the fasting month, which began on Saturday. "I call the attention of all mass organizations to not violate the law," Pradopo said after accompanying President Susilo Bambang Yudhoyono at a function in Jakarta on Tuesday. He said that in order to prevent a raid by a mass organization that threatened to fuel public unrest, police would approach the leaders of mass organizations, including their members. "We will take steps to conduct cordial meetings and discuss what they can and cannot do. We also cooperate with the regional governments and religious leaders," the police chief said. Earlier in Madiun, East Java, police had raided a number of hotels in the city in their efforts to fight vices ahead of the Muslim fasting month of Ramadan. The chief of Sabhara police unit of the city police, Adjunct Commissioner Baru Trisno, revealed here in Madiun on Tuesday. During the operations the police arrested five unwed couples found in the rooms of a few low-cost hotels. "The police have arrested five couples outside wedlock, staying at different hotels such as Hotel Dinar, Hotel Taman Asri and Hotel Taman Indah," he told newsmen. ***1*** |
RI NEEDS TO EXPAND MARKET FOR HANDICRAFT PRODUCT
| By Andi Abdussalam |
Jakarta, July 21 (ANTARA) - Indonesia has planned to expand its export markets in a bid to leverage a rising trend in the production of local handicrafts and in order to focus on exporting to markets other than the United States and the European Union. "We need a breakthrough to increase exports by expanding our markets to the members of ASEAN and Asia such as China and India," said Ambar Tjahyono, chairman of the Indonesian Furniture and Handicraft Industry Association (Asmindo) on Friday. Asmindo, which has set a 10 percent export increase at US$2 billion this year, needs to expand its exports to Asia and ASEAN to overcome gloomy markets in the United States and Europe that are still experiencing economic turmoil. Indonesia's furniture exports to the United States and Europe accounted for 25 percent and 35 percent of the total exports respectively. Ambar had previously said that Indonesia should avoid exporting to a number of countries in the midst of the economic crisis because it could disadvantage Indonesian businesses. He said that Indonesia should, thus reorient its outlook on newer market destinations. "We are targeting 15 provinces in China for our furniture and handicraft products at present," he claimed. The volumes of Asmindo exports to a number of ASEAN countries in 2011 stood at US$77.328 million, the biggest of which were contributed by exports to Malaysia, Singapore and Vietnam. Last year, Indonesia's handicraft exports (excluding furniture) increased by 8 percent to US$800 million. "Indonesia's handicraft exports in 2011 rose by 8 percent to US$800 million when compared to the numbers seen in 2010," said Anshari Bukhari, the secretary general of the Ministry of Industry meanwhile. In a step towards developing the industry¿s potential, the government has given a priority to the development of labor intensive handicraft businesses, most of which are cottage industries that significantly contribute to foreign exchange of the country. Home industry is the prime driver of the country's regional economies and plays a big role in creating new entrepreneurs, absorbing new workers and contributing to the Gross Domestic Products (GDP), particularly in the creative economic sector. "Cottage industry is successful because it is able to increase its own production capacity. Therefore, Indonesia has the big potential to develop its home industry. After all, it is rich in local culture and heritage which will enable it to produce cultural handicraft products," added Director General Anshari. In order to develop this creative industrial sector in a globalized world, the ministry of industry seeks to cooperate and establish a strategic alliance with industrial players to revitalize and increase the capacity of the creative industry while creating new entrepreneurs. "The ability to be creative by creating good designs for products is decisive to increasing the competitive edge of our products. In order to win against the domestic and world market competition, business players must be able to produce goods in line with the demand trend," explained the secretary general of the ministry of industry. The director general is convinced that cottage industry can develop and compete in the market. Moreover, handicraft industry is able to increase its own production capacity. Most businesses can develop themselves without bank credits. Yunita Resmi Sari, the deputy director for research and banking regulation affairs of Bank Indonesia (BI) or the central bank, said that the ability to finance cottage industry was relatively high at present. The industry has high liquidity while the borrowing cost for asset financing is low. Its ability to repay debts is also high, she said. Even, according to Yunita, about 54.9 percent house-hold (industry) respondents surveyed did not take credits from banks while 45.1 percent had borrowed money," she said. She cited a BI survey on household and cottage business in 2011 carried out on 4,095 respondents in 10 different regions of the country. Low-income people with an annual income of Rp20 million accounted for 22.1 percent, middle-class people with incomes between Rp20 million and Rp65 million stood at 60.9 percent and the remaining percentage made the high income bracket with an annual earning of Rp65 million or over. "Of the respondents, some 51.8 percent have no savings in banks while those who have money at banks accounted for 48.1 percent. About 54.9 percent of respondents did not borrow money from banks while 45.1 percent had borrowed money," she said. According to Yunita, most of those (24.1 percent) people who borrowed money, obtained funds from non-financial institutions, 19 percent from banks and 16.04 percent from non-bank financial institutions," she said. Yunita explained that in 2011 about 29.51 percent of banking credits by cottage industry were used for business capital, 19.95 percent for consumption, 18.51 percent for purchasing vehicles, 8.32 percent for education, 3.84 percent for health and 8.88 percent for others. In order to develop home industry, Director General Anshori stressed the importance for home industrial businessmen to establish information networks on local resources that could be used by handicraftsmen to develop their business such as natural and cultural resources. Besides, promotion of products is also necessary so that handicraft products would become popular both in the domestic and international markets. For this purpose, Indonesia will hold an International Furniture and Craft Fair Indonesia (IFFINA) in Jakarta to start on March 11 next year. The sixth annual fair is expected to draw 3,500 buyers both from Indonesia and from foreign shores, said the Asmindo chairman for Jepara chapter. The number is larger than this year's 3,000 buyers, chairman of the Jepara chapter of the association Akhmad Fauzi added. Next year's fair will occupy a location of 20,000 sq. m of land including 2,600 sq. m for Jepara furniture, Akhmad said. Foreign furniture producers are also expected to take part in the fair, he said. The fair will serve to prepare for similar fairs scheduled to be held abroad in a number of countries, such as Malaysia, Singapore, Vietnam, Thailand, the Philippines and China, Europe and the United States.***2*** |
Kamis, 19 Juli 2012
GOVT RAISES GEOTHERMAL POWER PRICES
| By Andi Abdussalam |
Jakarta, July 19 (ANTARA) - The government has raised the sales price of electricity produced by geothermal power plants from the previous maximum 9.7 cent dollar per kWh to a range of 10 cent dollar - 17 cent dollar per kWh, in a move congruent with power energy distributors' demands. Director General for New, Renewable and Conservation Energies Affairs of the Ministry of Energy and Mineral Resources (ESDM) Kardaya Warnika said that the government hoped the increase in the price of geothermal power would increase the use of electricity produced by geothermal power plants and would boost investment in this sector, here on Tuesday. The director general said that the new price increases were regulated through a ministerial decree which revised the ESDM ministerial decree No. 2 / 2011 on the assignment of state-owned power utility firm PLN to purchase electricity produced by geothermal power plants and on the reference prices of geothermal power the PLN has to pay. Based on the revised ministerial decree, PLN has the obligation to purchase geothermal power at a maximum price of 9.7 US dollar cents per kWh. Last month, Pertamina Geothermal Energy (PGE), a subsidiary of state-owned oil and gas company Pertamina, hoped that the government would soon set a reasonable price on the price of geothermal power. He said the sales price of geothermal power was still low at Kamojang IV geothermal power plant (PLTP) with its price still at three US dollar cents per kWh. The government could help develop geothermal power production by setting a reasonable price," told President Director of PT PGE Slamet Riadhy. He said the geothermal power plant industry is a highly risky business and needs a large investment. PGE hoped that the sales price of electricity from geothermal energy produced at Ulubelu 3 and 4 would be higher than Ulubelu 1 and 2 which will soon start operating as per government guidelines. Slamet said PT PGE is managing 292 megawatts of geothermal power energy, of which 20 MW is produced by PLTP Lahendong. However, he added PGE has set a target of producing 110 megawatts from the geothermal area in PLTP Ulubelu 1 dan 2 this year. Director General Kardaya said the newly set prices of geothermal power were set at a variable rate ranging from 10 US dollar cents to 17 US dollar cents per kWh, depending on the locations of the plants and on other specific considerations. He cited Java as an example where the price of per kWh of geothermal power was set at 11-11.5 cent dollar per kWh in Sumatra at 10 cent dollar, in East Nusa Tenggara at 15 cent dollar and Papua at 17 cent dollar. The prices were also set based on the availability of geothermal energy sources and their environment supporting capacity in places such as at tourist resorts and places where pollution of the regions was high. He said that the new prices were not effective for old contracts, but were effective for new contracts or for contracts which were to be extended. "Yet, old contracts can also implement the price increases based on a business-to-business (B-to-B) deal," he asserted. The director general said that the price of geothermal energy was also raised as part of the government's efforts to boost investment in the geothermal energy sector. "The government has set itself a target to increase geothermal production to 4.000-5.000 MW in 2014-2015," revealed Kardaya Warnika. The Indonesian government is developing a 20,000 MW power project in two phases. Out of the country's second phase of the 10,000 MW development project, 4,000 MW would come from geothermal sources. According to Education Minister Muhammad Nuh, New Zealand has high technology and research expertise in geothermal energy. Nuh said that the education ministry has established a rapport with a number of major universities in the country like Bandung Institute of Technology, and Surabaya Institute of Technology to develop geothermal research. In the meantime, Japan is also looking to increase its cooperation with Indonesia in the field of geothermal energy development as part of its efforts to find energy sources to meet its needs. "Japan has expressed its commitment to cooperate in the field of geothermal energy development," told Vice-Presidential spokesman Yopie Hidayat while speaking to newsmen recently. He released a statement after Vice-President Boediono received Hiroshi Okuda, the governor of Japan Bank for International Cooperation (JBIC) and Japanese ambassador Yoshinori Katori. While noting the similarities in natural conditions of the two countries, it was cited that they could cooperate to develop geothermal and hydro-energy sources. "Japan has used geothermal and hydro-energy sources to generate electricity. Japan wishes to be involved in the development of the energy resources in Indonesia," he said. He said Vice-President Boediono welcomed the JBIC's request, saying the Indonesian government is prioritizing the development of environmental-friendly power plant. Out of the country's second phase of the 10,000 MW development project, 4,000 MW would come from geothermal sources. "It would be very good if JBIC would participate and support it," he said, quoting the Vice-President.***2*** |
Rabu, 18 Juli 2012
COMMODITY PRICES SHOWING UPWARD TREND
| By Andi Abdussalam |
Jakarta, July 18 (ANTARA) - Commodity prices in the country, particularly those of basic necessities, have begun to show a rising trend in the run-up to the fasting month of Ramadan that begins at the end of the week. Economist of the Institute for Development of Economics and Finance (Indef) Enny Sri Hartati said that this increase was due to certain private businesses which manipulate prices in order to create a condition where the markets are non- competitive. "There are certain parties who control and decide prices in accordance to their desires. That causes the markets to be non-competitive," said Enny on Tuesday. Prices of various basic necessities in Jakarta, for example, have continued to increase in the past several days. Traders say prices have been increasing, since the past three weeks. Anik, one of the traders at Gandaria Market in Central Jakarta, said that the price of chicken had been on the rise since the last three weeks. Almost all food prices are on the rise. A relatively big chicken is usually sold at Rp18,000 each. "Now its price has reached up to Rp35,000 each," Anik said. There is a steep price increase even for meat. Meat trader Usin said that the beef prices had increased to Rp80,000 per kg from Rp70,000 per kg. "Demand for meat continues to increase even as our stocks continue to be limited,¿ he explained. Traders said that different types of onions like garlic and 'Bombay' onion had seen price increases from Rp12,000 to Rp18,000, and Rp8,000 per kg to Rp11,000 per kg respectively. Meanwhile, the price of eggs rose from Rp16,000 per kg to rp20,000 per kg. In the meantime, rice price also increased, but ever so slightly. The price of best quality rice increased from Rp7,000 per kg to Rp10,000 per kg. 'Putri Sejati' rice also experienced a price increase of some Rp100 per kg daily. The price of a sack of rice weighing about 25 kg, has now reached Rp25 thousand, increasing by Rp2,500 per kg. It is now being sold at Rp8,200 per kg. With reference to sugar, trader Ipan said that sugar price also was up from Rp12,000 per kg to Rp13,000 per kg. Traders said that although prices were now on the rise, the number of consumers buying the commodities did not decline citing regular demand. Still, a number of consumers complained about the price increases. According to a buyer Budhiarti, the prices of food items had shot up, particularly beef, chicken and chili. She said she used to spend anywhere between Rp50,000 and Rp80,000 when she visited the market to shop for her kitchen needs. "Now, I have spent Rp100,000, without buying rice. Rice used to be sold at Rp170,000 for 20 kg, but now it sells at Rp195,000 per 20 kg," Budhiarti complained when we met her in a market at Jakarta. Data at the Ministry of Trade and Industry on July 10, indicated that the national average price of beef was Rp75,332 per kg, of chicken rp27,081 per kg, of egg Rp18,301 per kg, of sugar Rp13,123 per kg and of red chili Rp28,387 per kg. The average increase in the prices of these goods when compared to those from last June is between Rp1000 and Rp3,000 per kg. According to Indef economist Enny Sri Hartarti, demand during the season increases in the run up to the fasting month and during the post-fasting festivities, locally called "Lebran," and could be seen as being realistic, since consumers would continue to shell out money for basic necessities. Therefore, Agriculture Minister Suswono urged business players to not make use of this opportunity to overtly raise prices. "We urged business players to alleviate the price burden of consumers by not overly raising prices," the minister said on Tuesday. He added that if the commodity prices sky-rocket, they would adversely disadvantage the business players left with excessive stocks that remain unsold during this upward trend, which will further lead up to a drastic price drop. The minister acknowledged that the government faced difficulties in controlling price increases because it had no agency in charge of conducting market operations for basic necessities other than for rice. The government only has the logistics agency (BULOG) that has authority to conduct market inspections on rice. "Bulog can launch market operations to stabilize rice prices, but the other necessities such as eggs are left to the market mechanism in order to decide prices," the minister asserted. Suswono said that during the run-up to the fasting month, prices increased but they would begin to drop after the first week of Ramadan, and would increase yet again during the post-fasting Idul Fitri Lebaran festivities. Therefore, the minister called on the people to not panic during this upward trend. "Public panic could adversely be taken advantage of by traders to overly raise prices," said the agriculture minister. He said that the main problem facing the markets was logistics and distribution. The rise in prices was due to the scarcity of food items in circulation. The scarcity would not have taken place if distribution was running well and smoothly. Therefore, the government is now preparing transportation facilities to streamline the inter-island distribution of commodities, including cattle. "Now, beef stocks are enough. Stocks of slaughter cows are also adequate because we have a headcount of 150,000 cows that can be supplied if there is a significant price rise," the minister concluded. ***2*** |
Selasa, 17 Juli 2012
RIAU READY TO HOST NATIONAL SPORTS WEEK
| By Andi Abdussalam |
Jakarta, July 17 (ANTARA) - The Sumatran province of Riau is now ready to host the four-yearly National Sports Week (PON) XIII, which will feature 39 sports and have 598 gold medals at stake, in September. "The Province of Riau is now ready to organize PON XVIII on time. Youths and Sports Affairs Minister Andi Malarangeng has overseen the preparations and the sports festivals can be held on time," PON XVII Executive Chairman for Riau Syamsurizal said during the weekend. "The sports week will begin on September 9 and last until September 20, 2012. The opening ceremony will be held on September 11, because the President will still be in overseas until then. However, the competitions will begin on September 9," he added. Last week, Minister Andi visited the sports venues, including the seven sites where construction was earlier hampered due to time constraints. The minister and his entourage also inspected the baseball, softball and fencing venues. The sports week organizers said they were optimistic that the event would be held on time, although the construction of seven venues had yet to be completed. PON VIII Deputy Executive Chairman Zulkifli Saleh stated that the committee had prepared alternative arenas to replace the seven venues if their construction did not finish on time. "We have to pay attention to the construction of the venues but the focus is on [how to obtain more] funds," Zulkifli said, adding that the unfinished seven venues were those for baseball, shooting, sepak takraw, indoor volleyball, archery, wrestling and billiards. "For the billiard event, we can organize it in a hotel or use the previous facility," he said. Zulkifli noted that the organizers were working hard to build the facilities. In order to save time, the government would invite tenders from private parties for provision of various equipment and services. The organizers might even lease equipment used in previous events. The sporting events will be held in different districts of Riau, as well as in the provincial capital city of Pekanbaru. Pekanbaru had started its preparations for the sports week a year ago. Last year, Pekanbaru Mayor Herman Abdullah applauded his government¿s efforts to make the city ready for the event. "We are now working on the Siak III and IV bridges," he said. "Infrastructures such as roads, airport and bridges must be ready. The mayoral government has completed a number of infrastructure-related tasks under its responsibility, such as land clearance for Siak bridge construction. Now it is the task of the provincial government to complete it," Herman added. He also cited the example of Siak IV bridge, in which the land clearance was done by the mayoral government and local residents had already received compensation. "The same is true in the case of Siak III. The provincial government has said the construction of the bridge will be completed soon, but it would be better if it does so earlier," Herman said. ¿The two bridges that connect the various venues on Jalan Sudirman in Pekanbaru should have been completed and fully functional well before the sports events took place. The Siak bridges must be given priority. Moreover, Siak I, which connects Pekanbaru and Rumbai district, is already 33 years old. People fear that it could collapse anytime when it is used," he added. Meanwhile, Syamsurizal said the province of Riau was ready to organise the opening ceremony, and preparations for the event were running well. He added that his team also cooperated with the organizers of the SEA Games, held in Palembang, South Sumatra, not long ago. Regarding the development of the seven sports venues, he noted that the preparations were running smoothly. "Based on the organizers¿ evaluation, we concluded that all parties responsible for the preparations of the venues are now ready to carry out their respective tasks for the sports events," Syamsurizal said. He pointed out that the technical teams involved in the preparations of the event had also expressed conviction that Riau was ready to host the competitions. "In order to overcome transportation problems, traffic jams in particular, we have coordinated with traffic police," he stated. To support the organizers, Sysmsurizal added, the committee had trained about 5,000 people to help in the smooth implementation of PON XVIII. Riau province is poised to win at least 60 gold medals. It was earlier said the National Sports Week XIII would feature 55 sports events and there would be 555 gold medals, 555 silvers and 729 bronze medals at stake. According to the Indonesian National Sports Committee (KONI) for Riau, the province's athletes are superior in certain sports. "We set ourselves a target of grabbing 60 gold medals. We have athletes who are excellent in sepak takrau, rowing, weightlifting, bodybuilding, and several other sports," KONI chairman for Riau Yuherman Yusuf said. However, he noted that Riau province had never been the overall champion at the event. Compared with Jakarta, Riau lags far behind, with the country¿s capital having been the overall champion 10 times. "But we are eager to give the best results to the people of Riau with our professional athletes," Yuherman said. He added that the athletes of Riau province were mentally and physically well prepared, so they were expected to make the Riau people proud.***3*** |
Senin, 16 Juli 2012
CONSUMERS WARNED OF EXPIRED GOODS DURING FASTING MONTH
| By Andi Abdussalam |
Jakarta, July 16 (ANTARA) - Many traders try to take advantage of the high food consumption during and post Ramadhan fasting month by selling illegally trademarked products, and expired foods and beverages on the market.
In order to protect people from consuming expired goods, government agencies like trade and industry services as well as the Food and Drug Supervision Agency (BPOM) will conduct market inspections.This is in line with the call made by the Indonesian Consumer Institute Foundation (YLKI). "We are calling on relevant services and agencies to increase supervision to guarantee that food items released into the market are safe and secure for public consumption," said Chairman of YLKI for West Sumatra Syaharman Zanhar earlier on the occasion. Besides checking on expired goods, the government must also ensure the normal availability of food stocks and basic necessities needed by consumers during the holy month of Ramadhan that¿s expected to start next Friday or Saturday. For this purpose, the government will hold a meeting this week to discuss and evaluate the availability of food stocks during the fasting month. "The evaluation of food stocks will be done by the coordinating ministers," remarked Agriculture minister Suswono at the Presidential Palace last week. "So far we have no problems, but we will evaluate it next week at a coordination meeting on economic affairs," he asserted. The government will evaluate the availability of three commodities: rice, meat (beef and chicken) and sugar. |
Sabtu, 14 Juli 2012
GOVT UPBEAT OVER ECONOMIC GROWTH THIS YEAR
| by Andi Abdussalam |
Jakarta, July 14 (ANTARA) - The World Bank has reminded Indonesia to keep a watch on the global economic crisis and prepare anticipatory steps to maintain its relatively high economic growth which stands at about six percent this year. "Indonesia needs to remain alert and be careful. Overcast skies will be followed by rains and storms. Similarly, Indonesia must prepare for unforeseen risks and take anticipatory steps to minimize their impact," said World Bank Director Sri Mulyani on Thursday. Yet, Finance Minister Agus Martowardojo is optimistic that Indonesia's economic growth at the end of 2012 will be above 6 percent despite the ongoing global economic crisis. "I am optimistic that Indonesia's economic growth will be above six percent this year regardless of the financial crisis in Europe," he said. However, economic analyst Lana Soelistianingshi has predicted that although the country has a chance to boost its economic growth to a relatively higher level, Indonesia will not be able to achieve its economic growth target of 6.5 percent. "This is because it is still slow in implementing its economic development program, particularly in developing its infrastructure to support what it calls the Master Plan for the Acceleration and Expansion of Indonesia's Economic Development (MP3I)," explained Lana, chief economist of Samuel Sekuritas firm. She also claimed that to achieve an economic growth of over 6 percent, the Indonesian government must develop adequate infrastructure, such as the construction of the Rp225 trillion Sunda Strait Bridge that will connect Java and Sumatra islands. "I am convinced that if the Sunda Strait Bridge is built soon, Indonesia's economic will grow by 6.5 percent because of its definite impacts and implications on the country's economic developments," she said. According to Lana, uncertain global economic conditions are another factor that could slow the country's economic growth. Indonesia's commodities, such as coal, crude palm oil, rubber and copper exports have continued to drop. If the world economy is slowing down, the prices of Indonesia's commodities will also decline. The economies of Indonesia's major importers such as China and the United States are also predicted to weaken during this time. "Declining commodity prices will reduce revenues from exports. Thus, the World Bank has begun to revise downward Indonesia's economic growth," she said. "Despite its strong growth compared to that of other developing countries owing to its strong domestic consumption and investment, Indonesia would not be able to avoid the impact of global economic slowdown, especially if prices of world commodities and demand from countries such as China are affected," revealed World Bank's country director for Indonesia Stefan Koeberle in a press statement earlier. Yet, Stefan Koeberle is convinced that Indonesia will be able to surpass the current global economic crisis with its six percent growth this year. "The Indonesian government has made important progress such as preparing a crisis management protocol and regulating contingency funds for the government in case of the crisis," he added. In spite of this, the World Bank reminded that Indonesia should remain careful. World Bank Director Sri Mulyani Indrawati said Indonesia should be vigilant with regards to the global economic crisis, so that it will be able to take anticipatory steps over possible outcomes. The WB director said Indonesia's economic growth in the first semester of this year was quite high when compared to the average growth rate of the world in recent days. She also said that Indonesia's ability to maintain momentum seemed to be relatively strong. "We predict that Indonesia's economic growth at present will still be over six percent," she said. She reminded, however, that the risks emerging from the global economic crisis during the second semester of this year might be found in a number of sectors. Seemingly, Europe still needs time to overcome the current condition, particularly with regard to policy making. Weak policies have the potential to become precursors for different crises that could affect confidence in the world economic development. She said one cannot predict when this may happen. However, it is almost certain that such a crisis will take place. "What the government can do is to keep a watch and make calculations to minimize its impacts." Finance Minister Agus Martowardojo, however, has predicted that the Indonesian economy will perform better in the second semester when compared to its 6.3 percent growth seen during the first semester. "Usually the economic growth in the second, third and fourth quarters is higher than that of the first quarter," he said. Therefore, to increase its economic growth the government will speed up capital spending and raise the limit of untaxed income as a fiscal stimulus, he said. "If the stimulus in the form of expedited infrastructure financing is disbursed, it will surely cause our economy to perform better. Likewise, the plan to raise the limit of untaxed income will boost the people's economy," he said. He expressed optimism that economic growth was still relevant to the assumed economic growth rate of 6.5 percent in the revised 2012 state budget and would not be affected by the lingering European economic crisis. Meanwhile, Deputy Chairman of the Prosperous Justice Party (PKS) Faction of the House of Representatives (DPR) Sohibul Iman hailed the country's economic growth that stood at 6.5 percent in 2011. "This is a good growth trend that¿s continued to rise from 6.1 percent in 2010 and 4.6 percent in 2009," he added. The PKS House Faction chairman said that the government needs to maintain this upward economic growth trend amid uncertain global economic conditions. He also appreciated the government's success in tackling the inflation rate by bringing it under control at only 3.79 percent in 2011, which was far lower than the assumed figure of 5.65 percent during the 2011 state budget. The inflation rate had touched 6.96 percent earlier in 2010. "We ask the government to work and consistently cooperate with Bank Indonesia in curbing inflation at a lower rate in an effort to ensure better purchasing power for the people," he concluded.***2*** |
Kamis, 12 Juli 2012
GOVT PREPARING FOOD STOCKS IN FACE OF FASTING MONTH
| By Andi Abdussalam |
Jakarta, July 12 (ANTARA) - Like in previous years, the issue of food stocks is a crucial one during the run-up to Ramadhan, the holy fasting month for Muslims, and its post-festivities, locally called "Labaran." "We have big stocks stored at the warehouses of the state logistics board Bulog," revealed Coordinating Minister for Economic Affairs Hatta Rajasa on Tuesday. He explained that Bulog's rice stocks totaled 1.5 million tons and it had procured about 2.4 million tons of rice since January this year. In the meantime, Agriculture Minister Suswono asserted that the country's rice production could reach over 7 million tons by September 2012. Based on the data furnished by the Central Bureau of Statistics (BPS), the volume of rice production showed an increase of 4.30 percent. "Rice stocks are enough to last during the post-fasting festivities of Lebaran," Suswono asserted. Regarding the possibility of rice price hikes, the minister said it was possible that rice prices could increase although not significantly. He said that the ability of Bulog to procure rice from farmers this year was better than that of last year's. Up till now, Bulog has absorbed about 2.4 million tons of rice. This figure is higher than what was seen during the corresponding period of 2011, which stood at only 1.7 million tons. The logistics board agency has set itself a target of absorbing rice amounting to about 3 to 3.5 million tons in 2012. "Presently, a number of regions are waiting to harvest their fields and with the current normal climate continuing, it seems that there is no need to worry about rice production. This will enable Bulog to absorb more rice stocks," he added. Even though, it is sure that the food stocks are quite enough, the government has still planned to hold a meeting to discuss and evaluate the availability of food stocks next week. Speaking from the Presidential State Palace on Tuesday, Agriculture minister Suswono said that an evaluation on food stocks would be carried out at the Coordinating ministers' meeting. "So far we have no problems but we will evaluate the status next week at a coordination meeting on economic affairs," the minister said. The government will evaluate the availability of stocks of three commodities, namely rice, meat (beef and chicken) and sugar. Earlier, Acting Director General for Agricultural Product Processing and Marketing Banun Harpini had said that the people did not need to worry about the availability of food stocks during the fasting month and Lebaran. In order to ensure the availability of meat, the government has proposed an importation of beef during the third and fourth quarters of this year. Although the government guarantees the availability of food stocks, it also predicts that the prices of a number of commodities might also increase slightly, particularly those of garlic and chili. Yet, the increase in the prices of the commodities during the run-up to the fasting month is predicted to be within reasonable limits as a result of psychological impacts of increasing demand. Banun who is also the head of the agricultural quarantine service of the Agricultural Ministry said that the public meat consumption in Indonesia was still low. It is known that the people's animal protein consumption such as in chicken, beef, egg, milk and others continues to be low. "Therefore, we need to encourage people to increase their animal protein intakes so as to boost production,¿ he claimed. The per capita consumption of the Indonesian people for chicken is only about 7 kg per year, lower than that of the Malaysians which stands at 36 kg per annum. The Indonesian egg consumption is only about 80 per capita per annum, whereas the Malaysians consume about 311 per capita per year. However, Banun believes that this number will increase in line with the improvement of their welfare. "There is a good prospect for animal husbandry industry in the country," he added. In the meantime, the Indonesian Consumer Institute (YLKI) urged all the relevant services to increase their supervision of food products during Ramadhan. Chairman of YLKI for West Sumatra Syaharman Zanhar stated that the demand for different types of food products during and the post-fasting month will increase drastically. He said that the increasing demand could be taken advantage of by irresponsible traders who put sub-standard products in the market. "Therefore, supervision should be tightened," he cautioned. "We are calling on relevant services and agencies to increase supervision and guarantee goods that are released into the market continue to be safe and secure for public consumption," he said. He mentioned that these relevant agencies were the Food and Drug Supervision Agency (BPOM) and the industrial and trade services, among others. Syaharman said that it was not impossible that irresponsible parties would take advantage of the momentum of the fasting month to sell expired goods, non standard foods and unregistered with the BPOM. The YLKI also called on the relevant agencies to supervise the selling of goods prepared for consumption during the breaking of the fast so that they would be free from chemical substance, formaldehyde and borax.***2*** |