NEW BI GOVERNOR GETS POSITIVE RESPONSE

by Andi Abdussalam

Jakarta, March 28 (Antara) - Economic observers and bankers have given positive response to the election of current Finance Minister Agus Martowardojo as new governor of Bank Indonesia (BI/the central bank).          He is considered to be the ideal figure to lead the central bank and his election is expected to provide positive impact on BI performance and create stimulus to national economy.         "Agus Martowardojo so far has a positive track record in the banking and financial industries. So, he is an ideal figure to lead BI," Rully Nova, financial market analyst of Bank Himpunan Saudara, said.          As a finance minister, Agus with good vision and mission similar to outgoing BI Governor Darmin Nasution, has good understanding on how to make the fiscal and real sectors run well in Indonesia.          "He is a figure who has the good governance capacity which is needed by BI to produce monetary policies for maintaining domestic economic stability," Rully said.          Finance Minister Agus Martowardojo was elected BI new governor by the House of Representatives (DPR)'s Commission XI on financial affairs on Tuesday.          He will take up his new post in May for the 2013-2018 period to replace outgoing BI Governor Darmin Nasution who will end his term on May 22, 2013.

INDONESIAN TRADITIONAL FISHERMEN REMAIN POOR

By Andi Abdussalam

Jakarta, March 24 (Antara) - Over seven million traditional fishermen living in the country's coastal areas remain poor even though the government has launched a fisheries industrialization program aimed at making the development of the fishery sector a success.          "Traditional fishermen have been in the poor condition since Indonesia gained its independence and since the declaration of the Millennium Development Goals (MDG),"  Abdul Halim, secretary general of  the People's Coalition for Fishery Justice (Kiara), said on Sunday.          Kiara urged the government to give serious attention to traditional fishermen as they remained poor amid the implementation of its fish industrialization program.          He said that the government regulations issued to speed up industrialization program in the fishery sector had failed to improve the welfare of traditional fishermen.

JAKARTA TO RUN SHORT OF 19,000 LITERS OF WATER PER SECOND IN 2020

by Andi Abdussalam

Jakarta, March 23 (Antara) -  Indonesia's capital city Jakarta, which has experienced water crisis for about 18 years, will face shortage of water supply by about 19,000 liters per second in 2020.          Now, Jakarta residents need about 26,938 liters of water per second but supply only reaches about 17,700 liters per second, according to hydrology expert Firdaus Ali of the University of Indonesia.          Other residents who have no access to clean water supply are forced to exploit groundwater.  This adds further burden to the land in the city after it suffers losses of groundwater sucked by industries, causing land subsidence.          Reports have it that Jakarta land surface has been sinking up 10 centimeters per year, bringing threats of infrastructure and building damage.          Although attempts to meet water need in the city, shortage of supply still remains. "Jakarta has been experiencing water crisis for a long time.  Exactly, it has been since 18 years ago," said Firdaus in Jakarta on Friday.

LACK OF RESPECT FOR WATER CAUSES WATER CRISIS

by Andi Abdussalam

Jakarta, March 22 (Antara) - People now lack respect for water as reflected in their less appreciation of various water related rituals, causing the emergence of clean water crisis.          "We can say that human beings are now losing their respect for water. This can be seen in the disappearance of respect for water-related rituals usually performed by traditional communities thoroughout the world," researcher of the Indonesian Consortium for Religious Studies, Dicky Sofjan said in Yogyakarta in connection with the world water day on Friday.          Traditional communities respect very much various rituals associated with water. In Yogyakarta (Java) for example, tradition such as the Merti Code ritual ceremony is performed by the masses in the rivers or sea to clean the water.          "Unluckily people of the current generation lack appreciation of such rituals. They thought the rituals are useless. But in fact such rituals are a means for us to respect water," Dicky said.          Besides that, religions also provide many lessons on how to respect water and utilize it in good way. In the Holy book of Quran, lessons on how to appreciate water could be learned from verses narrating the stories of prophets such as prophets Musa (Moses), Yunus (Johannes) and Yusuf (Joseph).

FOREIGN FIRMS EYE RI OIL PALM WASTE BUSINESS

By Andi Abdussalam

Jakarta, March 21 (Antara) - Indonesia is the world's largest crude palm oil (CPO) producer with an annual production of 25.5 million tons, but the commercial benefit of its oil palm refuse has not yet been maximally exploited.          A number of foreign companies, including from South Korea and Poland, have expressed interest in processing oil palm wastes to produce biomass energy and electricity.         The foreign investor companies which are exploring the opportunities included the EN3EN,  Daekwang Industries Co. Ltd of South Korea and PT Kepulauan Energi Lestari of Poland.          In Riau province, the South Korean government through EN3EN firm is interested in making investment with an initial fund worth US$50.1 million in this sector.          "EN3EN is the only company which wins the full support of the South Korean government in the development of energy conversion from oil palm wastes. We have begun to build a pilot project in Siak and Kampar of Riau province," Kei Sin Kim, senior and financial adviser of EN3EN, was quoted by Infosawit.com online as saying last month.          In its cash flow analysis, EN3EN depicts that the needed initial capital amounted to US$54 million. In in the 1-10 year period the cash flow would decline to US$11 million but would already enjoy an income of about US$40 million.

RI OIL PRODUCTION STILL BELOW TARGET

By Andi Abdussalam

Jakarta, March 19 (Antara) - Indonesia's average oil and condensate production up to the first week of March was recorded at 827.200 barrels per day (bpd), below the target set in the 2013 state budget at 900,000 bpd.          However its average natural gas production up to the same period has reached 8,196 million metric standard cubic feet (mmscfd), above the target set in the 2013 state budget at 7,890 mmscfd.          If oil and gas are taken together, Indonesia's average oil and gas production up to the first week of March has reached 2.29 million oil-equivalent barrels per day, slightly above the state budget target at 2.26 million oil-equivalent barrels per day.          The Upstream Oil and Gas Regulatory Task Force (SKK-Migas) has earlier predicted that the realistic calculation for Indonesia's average oil production in 2013 should be set at between 830,000 and 850,000 bpd, and its average gas production at 6,939 mmscfd or 1.24 million oil-equivalent barrels per day.          Thus, the realistic average oil and gas production for 2013, according to SKK-Migas should be set at between 2.07 and 2.09 million oil-equivalent barrels per day.

RI SEES BETTER PROSPECT FOR FURNITURE EXPORTS

by Andi Abdussalam

Jakarta, March 17 (Antara) - Indonesia's furniture exports have been declining since the 2008 economic crisis but this year the world economy is getting improvement that will support Indonesia's furniture exports to destination countries.          Indonesia with its big tropical timber potential was able to export US$2.2 billion worth of furniture before the 2008 economic crisis, but now its total furniture exports account for only about US$1.6 billion.          In line with the improvement of the market overseas, Indonesia now hopes it would regain its past furniture export glory, setting a furniture export target at US$2 billion this year.          Indonesia expects to see furniture exports surge by up to 10 percent to US$2.15 billion this year, mainly on the back of stable demand in key markets, continuing the recovery already seen in the past year, the Trade Ministry's director general for national export development, Gusmardi Bustami was quoted by the Jakarta Post as saying.

GOVT TO STABILIZE SOARING GARLIC, ONION PRICES

by Andi Abdussalam

Jakarta, March 14 (Antara) - The Indonesian government is now reviewing its regulations on import restriction of horticultural products in an effort to stabilize soaring garlic and onion prices in the domestic market.          "I appeal to the agriculture and trade ministers to meet as soon as possible to discuss the agriculture and trade ministers' regulations, particularly with regard to the importation of garlic and onion to increase supply in the local market," Chief Economic Minister Hatta Rajasa said at the Presidential Office, here, on Wednesday.          Inflation in February shot up to 0.75 percent -- the highest rate in the same month over the past ten years-- due to increase in the prices of food products.          Hatta said the time for import restriction on garlic was not correct now because farmers at home could only supply about 5 percent of the domestic need.           "It is quite unreasonable if garlic price contributed 0.17-021 percent of the inflation in February which was 0.75 percent. The minister of agriculture and the minister of trade should hold bilateral meetings to discuss and overcome this problem," Hatta said.          The result of the bilateral meeting should be taken to the coordinating minister for economic affairs to be discussed. The essence is that supply in domestic market must be met, according to Hatta.

GOVT POSTPONES GAS PRICE HIKE TO OFFSET INFLATION

By Andi Abdussalam

Jakarta, March 12 (Antara) - The government's decision to postpone state-owned oil and gas firm Pertamina's plan to increase gas price in 12-kg cylinders this month can help offset inflation that has been high since early this year.          "The postponement of raising the price of liquefied petroleum gas (LPG) in 12-kg cylinders is good. We believe it would curb the inflation rate in March and April," Bambang Brodjonegoro, acting head of the Finance Ministry's fiscal policy affairs, said.          University of Indonesia's economist Lana Soelistianingsih shared Bambang's view, saying that the government decision to postpone the LPG price increase would cut inflation potential by 0.5 percent.          "If the government goes on with  Pertamina's planned gas price hike, it would contribute multiple inflationary pressures to the economy because prices of food commodities such as onions, garlic, chili and other horticultural products have been skyrocketing. The deferment of the gas price hike will reduce the increasing inflation in the past two months," Lana Soelistianingsih.

ANALYST SAYS YUDHOYONO-PRABOWO MEETING BENEFITS BOTH SIDES

By Andi Abdussalam

Jakarta, March 11 (Antara) - President Susilo Bambang Yudhoyono, who is chief patron of the Democratic Party (PD) and Prabowo Subianto, chief patron of the Great Indonesia Movement Party (Gerindra), met for two hours at the Presidential Office on Monday.          Political analyst Saleh Partaonan Daulay said the meeting between President Susilo Bambang Yudhoyono and Prabowo Subianto had strategic meaning and benefited both sides.          The meeting was held at the invitation of the President but before they met the agenda of their meeting was not disclosed to the curious media.          "I am invited by the President, possibly to discuss several issues but I myself do not know the substance of the agenda. I think it concerns economic issues and other matters," Prabowo said before the meeting.          Presidential Spokesman Julian Aldrian Pasha did not either explain the agenda of the meeting. "The substance of their meeting would be explained after the meeting," Julian said.          Deputy Chairman of Gerindra Fadli Zon who accompanied Prabowo during the meeting said earlier the invitation was dispatched by Minister/State Secretary Sudi Silalahi on Saturday.          He said that he did not know the agenda of their talks, expressing his appreciation of the president's invitation. Fadli said however that a friendship meeting was something important in politics and could build political maturity.          When asked on whether they would discuss a political coalition in the face of the 2014 presidential race,  Prabowo said he had no idea. "Let's see later. Politics is dynamics," he was quoted by "Suara Pembaruan Online" as saying.

RI REVITALIZING SHRIMP CULTIVATION

By Andi Abdussalam

Jakarta, March 10 (Antara) - When Indonesia was hit by a financial crisis in 1998 and the rupiah value nosedived from about Rp2400 to Rp16,000 per US dollar, shrimp farmers in the country found themselves to be in the golden era.          While others have to make careful calculation for their spending, traditional shrimp farmers reaped big amount of money as they enjoyed the high value of the greenback from shrimp exports.          Unluckily, the golden era did not last long for traditional shrimp farmers as in following years a shrimp virus type spread in many parts of the country.          Massive death of shrimps at ponds often caused farmers to suffer a huge loss. As a consequence, many farmers stopped cultivating shrimps, shifting to other kinds of fish or leaving their ponds idle.          Now the government is doing its best to revive the spirit of shrimp farmers by launching a shrimp pond revitalization program.         The government is providing a budget of Rp240 billion for the revitalization of idle shrimp ponds. It also set a target to produce 608,000 tons shrimps this year.          The target for this year was set after it has revitalized 1,000 hectares of idle shrimp ponds last year in the northern cost of West Java and Banten. Provisional figure of shrimp production in 2012 was recorded at 457,600 tons.

MILITARY, POLICE NEED COMMUNICATIONS IN GRASS ROOTS

By Andi Abdussalam

Jakarta, March 9 (Antara) - Thursday's attack by military personnel on a police station in South Sumatra, has raised many quarters' concern, blaming the incident on the lack of communications of the military and police in the grass-root level.          "We are sad and regret the incident. The attack on a police station in Ogan Kemering Ulu (OKU) was just another incident which involves the two institutions. Members of the two institutions have often clashed in the past," Tjatur Sapto Edi, a member of the House of Representatives (DPR)'s Commission III on defense affairs, said in Yogyakarta on Friday.          The same concern was also expressed by Hamidah Abdurrachman, member of the National Police Commission (Kompolnas).  She said the acts of the military personnel who attacked, destroyed and set fire to the police station were something that stabbed the police institution.          "The commander of the Indonesian Defense Forces (TNI) should take stern actions against the TNI members immediately," Hamidah Abdurrachman said.           A group of military members from Artillery Battalion 15 of South Sumatra's Sriwijaya Military Command II attacked the OKU police headquarters, setting it on fire and injuring a number of police officers.

RI MINISTER ON WORLD TOUR TO INTRODUCE VISION ON WTO

By Andi Abdussalam

Jakarta, Feb 7 (Antara) - Indonesia's Tourism and Creative Economy Minister Mari Elka Pangestu has been on a world tour in the past several weeks to introduce her vision and mission as one the World Trade Organization (WTO) director general candidates.          In her bid to become director general of the World Trade Organization, Mari Elka Pangestu, has embarked on a world tour to persuade the trade bloc's 158 members to vote for her.          After being cleared to qualify as one of nine candidates for the organizations top job, Mari has met in Brussels with Jean Asselborn, Luxembourg's deputy prime minister and foreign minister, and Karel De Gucht, the European Union trade commissioner.          She has also delivered her vision and mission in a meeting in the WTO General Council in Geneva. She met with WTO representatives of a number of countries and visited a number of cities such as Washington, Beijing, Brussles, Paris, Berlin, Moscow, United Arab Emirate, Abidjan and Abuja.

HATTA OUTLINES CRITERIA FOR SUCCESSOR OF FINANCE MINISTER

By Andi Abdussalam

Jakarta, March 7 (Antara) - President Susilo Bambang Yudhoyono has submitted the name of Finance Minister Agus Martowardojo to the House of Representatives (DPR) as a sole candidate for the Bank Indonesia (BI) governorship to succeed outgoing Darmin Nasution.          On Tuesday night, the DPR's Commission XI on financial affairs decided to accept Agus's sole nomination as the central bank governor, yet it was still available if the president would add other candidates  before March 25, 2013.          Agus Martowardojo will have to undergo a fit-and-proper test in the House of Representatives before he could assume the post. Yet the correct figure who could take up his position as finance minister is now under discussion.      Economist Dradjat Wibowo said there were a number of figures who could succeed Agus Martowardojo. He among others mentioned Gita Wirjawan, now trade minister, and Darmin Nastion, the outgoing BI governor who would complete his term of office on May 23, 2013.       "I think one of the requirements is that a candidate must have personal closeness to the Palace," Dradjat Wibowo, who is also deputy  chairman of the National Mandate Party (PAN), was quoted recently by BritaPrima.com online as saying.

RI PRESIDENT CONCLUDES WORKING VISIT IN GERMANY

By Andi Abdussalam

Jakarta, March 6 (Antara) - Indonesian President Susilo Bambang Yudhoyono, who arrived on Sunday for a three-day working visit in Germany concluded his tour of the European nation on Wednesday after fostering bilateral cooperation in various fields.          President Yudhoyono and First Lady Ani Yudhoyono's entourage during the German tour included Foreign Affairs Minister Marty Natalegawa, deputy defense minister Sjafrie Syamsuddin, Industry Minister MS Hidayat, Trade Minister Gita Wiryawan and other government officials.          In his three-day working visit, the president among others met with German President Joachim Gauck, German Chancellor Angela Merkel, former German president Horst Kohler, chief executive officers of major German companies and other noted German businessmen.          President Yudhoyono, after a meeting  with German Head of State Joachim Gauck said that both sides agreed to continue cooperation, praising relations between the two countries.         "We are glad with the present state of our relations," President Yudhoyono said at Hotel Adlon Kempinski after the meeting.

RI NEEDS TO DEVELOP LOCAL CATTLE RANCHES

By Andi Abdussalam

Jakarta, March 5 (Antara) - The soaring beef price in the domestic market of late, particularly in Jakarta, has been blamed on stock shortage, lack of supply and dependence on import.          The price hikes happened amid the government's efforts to boost local breeding and to make its meat self-sufficiency program by 2014 a success.          The Agriculture Ministry has expressed optimism that the country can achieve self-reliance in meat production by 2014 despite the current high meat imports. It argued that the population of cows has always increased every year.          According to Director General of Husbandry and Animal Health at the Agriculture Ministry Syukur Iwantoro, the number of cows across the country reached 15.421 million in 2011 and the number rose to 16.656 million in 2012, he said.          "We remain optimistic that self-reliance in meat production can be achieved if it receives supports from all agencies," he said.          Therefore, the government hoped it would meet 85 percent of its meat need which reached 549 thousand tons per annum. Ranchers should therefore increase the number of their cattle which now reached about 14.8 million cows.

GOVT TO STUDY TRIGGERS OF FEBRUARY INFLATION

By Andi Abdussalam

Jakarta, March 3 (Antara) - The country's high inflation rate last February, the highest one in the same month over the past ten years, surprised the government.          Recorded at 0.75 percent, the February inflation is far higher than the government's estimate at between 0.3 and 0.4 percent.          "I have predicted that inflation would be high because it was usually high in the months of January and February. But the inflation rate last February was beyond expectation, reaching 0.75 percent." Chief economic minister Hatta Rajasa said.          The Central Bureau of Statistics (BPS) has announced that the inflation in February was the highest one ever recorded in the same month over the past ten years. It reached 0,75 percent.      "The inflation in February was the highest in the last ten years," BPS  Suryamin said.          Hatta Rajasa said on Sunday that the government will discuss and study what had became the trigger of the inflation.      "Usually, the inflation is high in January and February, not because it is not under control but because it has been a fact that inflation is always high during that period, usually due to the volatility of food prices. This time, however, the inflation is beyond expectation," Hatta said.

GOVT URGED TO DISSOLVE ANTI-TERROR SQUAD

By Andi Abdussalam

Jakarta, March 2 (Antara) - The Police's Densus 88 anti-terror squad has been able to crack-down on terrorism in the country but a human rights violation allegedly committed by officers of the elite force has caused religious leaders to call for its dissolution.          A number of religious leaders have filed a report to the National Police and submitted a video which showed a torture of a civilian in Poso, Central Sulawesi, allegedly committed by Densus 88 officers.          "We think Densus 88 needs to be evaluated and if need be it should disbanded. A new institution, with new approach in fighting terrorism should be established," Din Syamsuddin, chairman of the country's second largest Muslim organization Muhammadiyah, said     He said that the anti-terror squad had created stigma that it had committed a gross human rights violation in its efforts to fight terrorism in the country. The fight against terrorism has been often linked to Islam so that it disadvantaged the Muslim community.          Earlier, Muslim leaders and representatives of the Indonesian Ulemas Council (MUI) met with National Police Chief Gen. Timur Pradopo to discuss the video which showed the torture of an alleged terror suspect. They argued torture of a terror suspect was a  human rights violation.