INDONESIA TRYING TO REDUCE IMPORTS

By Andi Abdussalam

Jakarta, Aug 29 (Antara) - Indonesia does not need to worry about the depreciation of its Rupiah currency as this could boost exports and reduce imports and encourage the use of domestically produced goods.          "The government should work hard to cut its imports while increasing the use of local goods," Marine Affairs and Fisheries Minister, Susi Pudjiastuti, said on Saturday.          She said the depreciation of the local currency should not excessively raise concerns as it was a global phenomenon and numerous other countries in the world were also experiencing the same thing.          Minister Pudjiastuti said the Indonesian government had been working hard to reduce its dependence on imports amidst the rupiah weakening against the U.S. dollar.          Therefore, she called on the public to increase their sense of nationalism and use local products with pride.          Indonesia could also follow the example of other countries which had been successful in developing their local products, such as Russia.       Pudjiastuti also urged Indonesians to consume fish if the prices of other food products, such as beef and chicken continued to soar.

INDONESIA SEEKS MORE INVESTMENT FROM SOUTH KOREA

By Andi Abdussalam

Jakarta, Aug 29 (Antara) - Indonesian Vice President Jusuf Kalla, who is on a five day visit until Sunday to attend a peace conference in Seoul, has promoted Indonesian businesses to attract more investment from South Korea.         Kalla, who attended the Peace Summit of the Universal Peace Federation on Friday, also held meetings with the South Korean prime minister, trade and industry minister and conglomerates.        "Indonesia and South Korea are friendly countries and have strong relations," Kalla said in his address during a dinner party with South Korean conglomerates at Conrad Hotel, Seoul, Friday night.         During his speech, Kalla introduced additional investment potentials to South Korea, which is one of the five largest investor countries in Indonesia.         He noted that South Korea and Indonesia are both 70 years old, but South Korea has moved ahead in becoming an advanced nation.

CONCERNS ABOUT RI'S ECONOMIC CONDITIONS MOUNT

By Andi Abdussalam

Jakarta, Aug 28 (Antara) - Concerns about the unfavorable economic conditions in the country and global economic uncertainty are growing following the Rupiah's depreciation to about Rp14,000 against the U.S. dollar.          The economic difficulties that have manifested themselves recently are posing a dangerous threat to the country and should be dealt with immediately.          "In terms of economic fundamentals, growth and socio-politics, the economic conditions today are different from those during the economic crisis of 2008 and 1998. But the government should not be careless because the present economic conditions can pose a dangerous threat,"  former President Soesilo Bambang Yudhoyono, or SBY, said at his Puri Cikeas residence in Bogor, West Java, on Thursday night.          The former President asked the government of President Joko Widodo (Jokowi) to remain alert in the face of present conditions, particularly with regards to the ongoing unfavorable economic conditions.          The same concern was also raised by Zulkifli Hasan, Chairman of the People's Consultative Assembly (MPR). He reiterated that the current economic conditions were different from those existing in 1998.

JAPAN MAKES NEW PROPOSAL ON INDONESIAN FAST TRAIN PROJECT

by Andi Abdussalam

Jakarta, Aug 27 (Antara) - Japan has come up with a new proposal on the development of high speed trains (HST) in Indonesia amidst stiff competition from China to win the project.         Chief Economic Minister Darmin Nasution, who accompanied President Joko Widodo, to receive the Japanese delegation at the Presidential Palace on Wednesday said Japan had raised a new offer during a meeting with the President.         "Japan has offered that it can accept the requirement for a reduced guarantee on the project from a full guarantee," Nasution stated on Wednesday.         Japan also expressed readiness to accelerate the completion of the project from its previously proposed schedule. "They said it will be difficult to accelerate the project in terms of a time frame if an environmental study is included. They basically have several (new) proposals. I cannot explain it all yet. There is also the matter of transfer of technology," the minister said.         The new offer proposed by Japan is related to a new development in the Jakarta-Bandung high speed train project deal.

RUPIAH DEPRECIATION HAS NOT HURT INVESTMENT FLOW

By Andi Abdussalam

Jakarta, Aug 26 (Antara) - The recent depreciation of Indonesia's rupiah currency against the U.S. dollar has so far not hampered the flow of investment in the country.          Currently pegged at Rp12,500 against the U.S. dollar in the revised 2015 state budget, the rupiah has continued to weaken since early this year from about Rp12,580 per U.S. dollar to Rp14,000 per U.S. dollar. Yet the deprecation has not significantly affected investment in the country.          "We do not see yet the impact of the rupiah's depreciation on investment. However, it affects the real sector as demand is likely to drop", Franky Sibarani, the head of the Capital Investment Coordinating Board (BKPM), said in Jakarta on Tuesday.          Since the first semester of this year, the rupiah's depreciation has had no direct impact on the flow of investment. Investors are even trying to take advantage of the rupiah weakening by improving performance and their exports. That is a positive aspect of the rupiah depreciation.          "Data shows that during the first semester of the year, realization of investment rose by 16.6 percent. The realization of investment in the steel industry jumped 100 percent in the first semester," Sibarani pointed out.          BKPM has set an investment target of Rp519.5 trillion in 2015 and Rp594.8trillion in 2016, or up by 14.5 percent.

SAIL TOMINI MEANS OF BUILDING TOLLERANCE

By Andi Abdussalam

Jakarta, Aug 25 (Antara) - The upcoming 'Sail Indonesia' or 'Sail Tomini 2015' event which will peak in Central Sulawesi Province on September 19, 2015 is a means of building harmony and tolerance among different groups of people and nations.          Sail Indonesia is an annual event which this year is called 'Sail Tomini' because it will be held at Indonesia's largest gulf - 'Tomoni Bay'. It will bring together different groups of ethnicity, foreign citizenship and religious adherents.          Thus, while promoting Central Sulawesi's tourism and cultural potential, the sail event is also a means of building religious tolerance as it contains religious values, particularly Islamic values.          "The event will reinforce human relations and build a common perception about the cultivation of maritime and cultural potential in this region. This is one of the values of Islam," the Rector of the State Institute of Islamic Studies (IAIN), Prof. Dr H Zainal Abidin said on Tuesday.          He said the Sail Tomini 2015 event would also bring together not only people from a certain ethnic group, or religion, but also thousands of visitors from various ethnic groups and from different religions, even people from different nations.

'EQUATOR CARNIVAL' PROMOTES PONTIANAK TOURISM

By Andi Abdussalam

Jakarta, Aug 23 (Antara) - The 'Equator Carnival 2015' organized in the West Kalimantan provincial capital of Pontianak for two days on Saturday and Sunday is considered successful and could be made an annual event to promote the  province's tourism.          Tourism Minister Arief Yahya claimed the event which was held in conjunction with the celebrations of the 70th anniversary of Indonesia's independence had made a great success.          "Thank God, the carnival made a great success," Minister Arief Yahya said in Pontianak at the conclusion of the activity on Sunday.      He referred to the great number of people, particularly the residents of Pontianak City and people from outside the city, who came to enliven the carnival event.          "More than a half of the Pontianak City residents flocked to the Kapuas Square last night to enliven the folk festival," the minister said.          The Equator Carnival consisted of three events - land carnival, water carnival and folk festivity.  Hundreds of decorated boats and cars took part in the carnivals.          Pontianak, the provincial capital of West Kalimantan, is the host of the Equator Monument which marks the division between the northern and southern hemispheres.

GOVERNMENT TO REVISE REGULATION ON SALT IMPORTS

By Andi Abdussalam

Jakarta, Aug 22 (Antara) - The Indonesian government plans to revise its regulation on salt imports in order to increase domestic purchases of locally produced salt.         Currently, salt imports are based on Trade Minister's Regulation No. 58/M-DAG/PER/9/2015 on Salt Import.         "We have set up a team to revise Trade Minister's Regulation No.58/2015. We want to regulate three issues on salt imports," Karyanto Suprih, the acting director general of External Trade of the Ministry of Trade, said on Wednesday, Aug. 19.          He made the remarks in response to calls by farmers that the government should stop salt imports, which have flooded local markets and caused prices to fall.          The acting director general noted that since 2013 the government has not issued a license for the importation of consumer salt.          "Since 2013, we have not issued import permits for consumer salt. We have issued permits only for the importation of industrial salt, including salt used by various food industries," he said.

GOVT CONFIDENT OF ACHIEVING POWER PLANT DEVELOPMENT TARGET

By Andi Abdussalam

Jakarta, Aug 22 (Antara) - Even though it was criticized by a senior minister, the government is still confident of achieving its target to develop power plants with a total capacity of 35 thousand megawatts (MW) by 2019.          "Seeing the progress till date, we are optimistic. The only challenge remaining is land clearing and licensing," Energy and Mineral Resources (ESDM) Minister Sudirman Said stated last week.          The minister had made the statement following criticism by the Coordinating Minister of the Maritime Affairs, Rizal Ramli, who suggested that the government review its target to build new power plants in the next five years.          Ramli had said that it would be difficult to reach the 35 thousand MW target in 2019, especially with the carryover of a 7,000 MW pending target from the previous government.          The coordinating minister said he would ask Said and the National Energy Council to re-evaluate the target set by President Joko Widodo.          "I will ask the ESDM minister and the National Economic Council (DEN) to make a realistic re-evaluation of the target. Don't set too high a target, which becomes difficult to achieve," the new coordination minister said.

SHIP OWNERS OPEN TO SUPPORTING MARITIME PROGRAMS

By Andi Abdussalam

Jakarta, Aug 21 (Antara) - As government partners, ship operators in the Indonesian National Shipowners Association (INSA) are expected to boost tourism development and help achieve the government's goal of turning the country into a global maritime axis.          INSA, which held its 16th General Meeting (RUA INSA) on August 20 and 21, is expected to play an important role as the government's strategic partner in the maritime, sea communications and national shipping business sectors.          "INSA must utilize professionally the full support offered by the Transportation Minister," Jay Singgih, vice president of Bumi Laut Group of INSA, said during the meeting on Thursday.          He was referring to the Transportation Minister calling on ship owners to help the government develop marine tourism in Indonesia.          The meeting, which was chaired by Transportation Minister Ignasius Jonan on Thursday, was based on the theme: "INSA as the Belt of the Archipelago toward World's Maritime Axis."

IMMEDIATE EFFORTS PARAMOUNT TO ACHIEVING NEXT YEAR'S PLANS

By Andi Abdussalam

Jakarta, Aug 20 (Antara) - The government must now begin preparing actions in response to its work plans based on the macroeconomic assumptions set in the draft 2016 state budget.          These efforts must be made amid gloomy economic developments both at home and across the world. After all, Indonesia's rupiah currency has continued to depreciate against the US dollar.          "The government should accelerate the development of import substitution industries and expedite the development of downstream industries for boosting exports," Enny Sri Hartati, the director of the Institute for Development of Economics and Finance, noted on Friday last week.          She said the government should start making preparations in the second semester of 2015 and should focus on developing import substitution and downstream industries in the face of its work plans for 2016.          Policies must be prepared in response to the 2016 budget assumptions, particularly the rupiah exchange rate, which was set at Rp13.4 thousand per US dollar.          "The Rp13.4 thousand exchange rate assumption is no longer a matter of whether it is realistic or not, but of how to prepare the required policies to achieve it next year," Hartati affirmed.

FOREIGN INVESTMENT SET AT RP386.4 TLN TO BOOST EXPORTS

By Andi Abdussalam

Jakarta, Aug 1809 (Antara) - The government has set a foreign investment target at Rp386.4 trillion in 2016, or about 53.9 percent of the total investment plan of Rp594.8 trillion in efforts to boost exports.         Indonesia's export performance, which this year has slumped 10.23 percent compared with 2014, needs to be boosted by attracting more foreign investment.         "In order to help export-based industries, we need foreign investment. Of course this will need coordination among the Investment Coordinating Board (BKPM), the Industry Ministry and the Trade Ministry," Trade Minister Thomas Lembong said at a press conference on Wednesday.         The minister said he had held talks with the BKPM regarding investment in sectors that could support export-based industries.         Based on the Trade Ministry's data, the industrial sectors that can be developed because they cater to demand from overseas, include automotive, electronics, timber-based products, textile and textile products, metal and chemical products.         For this the BKPM has projected a bigger foreign investment. BKPM Chief Franky Sibarani said that of the Rp594.8 trillion target in 2016, about Rp386.4 trillion is expected to come from foreign investment or about 53.9 percent and Rp208.4 trillion from domestic investment.

EVACUATION OF TRIGANA CRASH VICTIMS' BODIES DELAYED

By Andi Abdussalam

Jakarta, Aug 18 (Antara) - The evacuation of the bodies of victims of the Trigana airplane, which crashed on Sunday in Oksob, Bintang Pegunungan District, Papua, has been postponed to Wednesday due to bad weather.         "For the time being, I have stopped the evacuation operations because the visibility is pegged at only two to three meters. We will continue it tomorrow at 5 a.m. Eastern Indonesia Time (WIT)," Col. Sugiono, Chief of the 172/Pra Wira Yakti (PWY) District Military Command, said on Tuesday evening.         According to a source in Oksibil, the district capital of Pegunungan Bintang, darkness at the location due to bad weather had resulted in the delay and forced the Airfast helicopter to return from the location to Oksibil.         Col. Sugiono said the search for the victims involved 189 personnel plus about 250 local residents.         "So the total number of personnel involved in the rescue effort has reached 189 in addition to hundreds of locals," Sugiono said.         On Tuesday, rescue workers had found the bodies of all 54 victims of Trigana Air Flight No. 257, which had crashed in Oksob.

RUPIAH DEPRECIATION CHANCE TO BOOST EXPORTS

By Andi Abdussalam

Jakarta, Aug 16 (Antara) - Indonesia's rupiah currency has continued to depreciate against the US dollar where since early this year until the middle of August it has dropped from about Rp12,580 to Rp13,800 per US dollar.          The weakening of the country's currency has caused prices of imported goods to soar. However, the government hopes that Indonesian exporters will take advantage of the rupiah depreciation to increase exports.          For this purpose, the government will send trade missions abroad, provide export financing facilities and hold exposition to promote exports.          President Joko Widodo recently urged the country's exporters to explore new markets by taking advantage of the rupiah's current depreciation against the US dollar.          "We usually only look at traditional markets such as the United States, Europe, China, Japan, and Korea while, in fact, there are other countries that we can enter," he noted in his speech at the launch of Threefold Export Increase Movement at Pelindo IV Makassar Container Terminal on Monday (August 3).

REGIONAL DEVELOPMENT FOCUS OF GOVT'S BUDGET ALLOCATION

By Andi Abdussalam

Jakarta, Aug 15 (Antara) -- The government is paying serious attention to regional development in the country, as is evident from the significant amount of funds allocated for the purpose in the draft state budget for 2016.          As much as Rp782.2 trillion, which is 58.4 percent of the Rp1,339.1 trillion budget set for central government expenditures, was allocated for regional development.          "Funds to be transferred to regions and villages amounts to Rp782.2 trillion," President Joko Widodo said while presenting the government statement on the draft state budget for 2016 before the plenary session of the House of Representatives on Friday.          On Wednesday, President Joko Widodo, who is fondly called Jokowi, unveiled the government's 2016 budget plan amounting to Rp2,121.3 trillion. Of the total, Rp1,339.1 was allocated for central government expenditures and Rp782.2 trillion for transfer to regions, including village funds.          According to Finance Minister Bambang Brodjonegoro, the allocation of Rp782.2 trillion as regional and village funds was Rp117.6 trillion more than the Rp664.6 trillion allocated in the revised state budget for 2015.

GOOD INFRASTRUCTURE NEEDED TO IMPROVE DISTRIBUTION OF BEEF

By Andi Abdussalam

Jakarta, Aug 15 (Antara) -- As production centers lack infrastructure to distribute the commodity to consumers, the price of beef has soared in the country.         Making improvements to infrastructure and ensuring proper management of the system used in the beef business can help regulate the price of beef to a fair level. Therefore, the government needs to improve infrastructure facilities and the management of the beef business, according to a legislator.         "These efforts are needed to ensure smoother and more efficient distribution of meat from production centers to consumers," Rofi Munawar, a member of Commission IV, which oversees agricultural affairs, of the House of Representatives, said here on Saturday.          If the government can improve the distribution and management system, he added, consumers will enjoy beef at a reasonable price, while cattle farmers will also earn great profit.          Munawar, who is a politician of the Prosperous Justice Party, explained that the scarcity of meat in the market of late was caused by imbalances between supply and demand from consumers.

NEW MINISTER EXPECTED TO OVERCOME SALT PROBLEM AT HOME

by Andi Abdussalam

Jakarta, Aug 13 (Antara) -- President Joko Widodo's move to appoint Rizal Ramli, an outspoken economist, as the coordinating minister for maritime affairs is expected to help resolve the issues related to salt at home.          Salt production by local farmers in the country has been facing stiff competition from an influx of imported salt in the domestic market, which allegedly involves a salt cartel.          "This is an important issue that must be resolved to realize the government's efforts to achieve food sovereignty," General Chairman of the Indonesian Traditional Fishermen's Association (KNTI) Muhammad Riza Damanik said on Thursday.          The KNTI has urged Minister Rizal Ramli, who was the coordinating minister for economic affairs during former president Abdurrahman Wahid's term, to investigate the alleged presence of a salt cartel.

INDONESIAN PARLIAMENT HAILS CABINET RESHUFFLE

 by Andi Abdussalam

          Jakarta, Aug 12 (Antara) -- Welcoming President Joko Widodo's move to reshuffle his working cabinet, the parliament said that it gave new hope amid the country's slowing economic growth.

         "It gives us new hope. The president must have evaluated the work of his ministers," House Speaker Setya Novanto said in response to the cabinet reshuffle that was conducted on Wednesday.

         Novanto added that the efforts of the reshuffled ministers should be appreciated.

         Chairman of the People's Consultative Assembly Zulkifli Hasan had the same positive response.

         He said that the cabinet reshuffle conducted by President Joko Widodo will assure the market and public that the working cabinet now has the right people.

         "The cabinet reshuffle will give a strong signal to the market and public that positions in the cabinet are now filled by the right people," he stated here on Wednesday.

ECONOMY EXPECTED TO GROW BETTER IN SECOND SEMESTER OF 2015

By Andi Abdussalam

Jakarta, Aug 12 (Antara) - The Indonesian government hopes that the country's economy would perform better in the second semester of 2015 after registering slower growth in the first semester.          Indonesia's economy grew 4.67 percent in the second quarter of 2015, down from 4.72 percent recorded in the first quarter. Thus, the economy grew only 4.7 percent in the first semester of 2015.         "The economic growth in the second quarter of 2015 was lower than that in the same period last year and the previous quarter of this year, which recorded a growth of 4.72 percent," Head of the Central Bureau of Statistics (BPS) Suryamin remarked during a press conference last week, August 5.         However, the government expects the economy to grow by 5.5 percent in the second half of 2015. To achieve this, it will make optimal efforts, including boosting government spending, to improve economic activities.

INDONESIA TO IMPORT CATTLE TO OVERCOME BEEF SHORTAGE

By Andi Abdussalam

Jakarta, Aug 11 (Antara) - The Indonesian government has decided to import 50 thousand heads of cattle and to conduct market operations as a short-term solution to overcome the current shortage of beef in various regions.         "During a coordination meeting, the government has decided to import cattle and conduct market operations to provide a short-term solution to the scarcity of meat in the market. The market operations will be conducted by the State Logistics Agency (Bulog)," Chief Economic Minister Sofyan Djalil stated on Monday.          For this purpose, the government will issue a permit to Bulog to import 50 thousand slaughter cattle.          "This is a very short-term policy. A mid-term policy until the end of the year should first be reported to the president," Djalil remarked during a joint press conference with Trade Minister Rachmat Gobel and Bulog President Director Djarot Kusumayakti.          He noted that the imported cattle would be slaughtered once they arrive in the country to meet the public's beef requirement. The government also hoped that the feedlot farmers would also release their cattle, so that the meat traders would return to their regular activities again.

INDONESIA'S CULTURAL DIVERSITY SUPPORTS TOURISM SECTOR

By Andi Abdussalam

Jakarta, Aug 10 (Antara) -- Having thousands of islands with some 300 ethnic groups that speak more than 580 local dialects, Indonesia is rich in culture, which serves as the backbone of its efforts to develop the tourism industry.          The government will continue to preserve, maintain and develop the country's culture as part of efforts to attract foreign tourists, to reach its target to draw some 10.6 million tourists to Indonesia in 2015 and 20 million in the next four years.          Director General of Culture of the Ministry of Education and Culture Kacung Marijan said that it is necessary for Indonesia to develop its culture to attract more foreign tourists.          "Indonesia's culture is one of the main attractions that draw in foreign tourists to the country. A survey revealed that about 60 percent of foreign tourists come to Indonesia because they are interested in its rich culture," he told the media in Semarang, Central Java, on Friday evening last week.

GOVT TO BOOST TAX RECEIPTS THROUGH REINVENTION POLICY

By Andi Abdussalam

Jakarta, Aug 8 (Antara) - The government is introducing a reinvention policy in an effort to boost tax receipts, which as of the second half of this year have not reached 50 percent.          Director General of Taxation Sigit Priadi Pramudito of the Ministry of Finance said that tax collections in the first half of 2015 stood at Rp531.1 trillion, 41.04 percent of the Rp1,294.2 trillion target set in the 2015 Revised Stage Budget.          Therefore, the government will seek to boost tax receipts through a reinvention policy to prevent total receipts from falling too low.          Finance Minister Bambang Brodjonegoro said on Friday that the details in the reinvention policy included the declaration of one year of tax guidance, wherein all taxpayers are urged to correct their tax reports and pay their arrears of the past five years on their own. They will be provided with an administrative penalty-free procedure.          Individuals and corporate bodies who have fulfilled requirements as taxpayers but do not have taxpayer numbers yet are expected to register, submit their tax reports and pay their tax obligations.

SHORTER DWELLING TIME TO BE IMPLEMENTED BY DECEMBER

by Andi Abdussalam

Jakarta, Aug 7 (Antara) -- The government has expressed hope that its plan to shorten the dwelling time at Indonesian ports from the current 10 to 11 days to only four days will be implemented by October or December this year.          President Joko Widodo's government is focusing on reducing the dwelling time, which continues to be considered too long, to smooth economic activities at ports.      It will reduce the time taken to load goods on and unload goods from ships at Indonesian ports to only four days.          Chief Economic Minister Sofyan Djalil said on Thursday that the four-day dwelling time target will be implemented by December at the latest.          To make improvements to this service, good coordination among relevant ministries/agencies is needed.          "As a mid-term plan, it should be completed by October, and we hope it is at least 95 percent complete by December," he remarked.

GOVERNMENT TO CONTROL SALT IMPORTS

By Andi Abdussalam

Jakarta, Aug 7 (Antara) - The local farmers have always voiced their complaints about the imported salt and agricultural products, such as rice and sugar when these products are flooding the domestic market.          Concurrently, the government is obligated to protect the interests of farmers and consumers, while businesses are only keen to make considerable profits.      Hence, when the prices and quality of local products fail to compete in the domestic market, importers tend to look to foreign goods that harm the interest of the farmers.          To create a balanced environment for businesses, farmers, and consumers, the Ministry of Marine Affairs and Fisheries will form a task force team to audit salt imports as part of its efforts to supervise the salt business in the country.          Salt farmers have so far complained about the imported salt, and domestic production has now dropped due to the commodity's declining prospects in the country.          The price of salt in the domestic market is about Rp750 to Rp1.5 thousand per kilogram (kg) while salt from Australia, for instance, costs only Rp500.

KPU REOPENS REGISTRATION FOR REGIONAL HEAD ELECTIONS

By Andi Abdussalam

Jakarta, Aug 6 (Antara) -- Seven regions were facing issues in implementing the simultaneous regional head elections (pilkada) for having less than two tickets.         However, the problem has been resolved for the time being as the General Elections Commission (KPU) has reopened the registration for the pilkada.         The KPU had closed the registration on August 3, but till the deadline, only one pair of candidates had registered in seven regions.         The simultaneous regional head elections, which were scheduled to be held across the country on December 9, could not be organized in these places with only one ticket.         However, the problem has been resolved, at least temporarily, following a recommendation from the General Elections Supervisory Body (Bawaslu) that the KPU open another round of registration for the seven regions.          With the opening of another round of registration, the seven regions are expected to have more than one ticket so that they can take part in the pilkada.          During the elections, voters across the country will simultaneously elect governors in nine provinces, district heads in 224 districts, and mayors in 36 municipalities.          Based on the recommendation of the Bawaslu, the KPU finally decided to open another round of registration from August 9 to August 11.

CORE INFLATION TREND AFFIRMS INDONESIA'S CURRENT ECONOMIC STABILITY

by Andi Abdussalam

Jakarta, Aug 4 (Antara) -- As announced by the Central Bureau of Statistics (BPS) on Monday, August 3, the inflation trend indicates that Indonesia's current economic conditions are stable.          Although the July 2015 inflation rate increased to 0.93 percent month-to-month (mtm) from 0.54 percent mtm in June, core inflation declined.          Core inflation dropped to 4.86 percent year-on-year (yoy) in July from 5.04 percent in June.         "Core inflation dropped to 4.86 percent from 5 percent three months ago. This means that on the whole, economic components developed positively and well," BPS Chief Suryamin said while announcing the latest developments in the inflation rate of the country, on Monday.           Core inflation in July was recorded at 0.34 percent mtm and 4.86 percent yoy. This is an indicator of stable economic conditions.

INDONESIAN DROUGHT WILL NOT CAUSE RICE SHORTAGE

By Andi Abdussalam

Jakarta, Aug 3 (Antara) - The ongoing drought affecting various parts of Indonesia will not cause shortage of rice this year as the government has taken anticipatory steps to reduce its impacts on rice fields.         Indonesia has set its rice production target for 2015 at 46.14 million tons while its annual rice requirement is only about 28.5 million tons.         The Ministry of Agriculture has forecast that it will reduce the impact of drought on rice farms from 200 thousand hectares in 2014 to 100 thousand hectares this year.     Hence, based on the five-ton rice production in every hectare of land, the drought this year will reduce rice production by only five thousand tons of the targeted 46.14 million tons.        Of the 8.61 million hectares of rice fields in Indonesia, about 3.3 million hectares of rain-fed rice fields are prone to drought.          However, Agriculture Minister Andi Amran Sulaiman has made assurance that the current drought will not affect the rice production, which will remain adequate. The government has even managed to successfully save Rp2 trillion worth of rice this year until July this year.

GOVT MAINTAINS INFLATION AT FAVORABLE LEVEL

By Andi Abdussalam

Jakarta, Aug 1 (Antara) - The government has been able to keep in check the country's inflation rates over the past months.         This is indicated by the July 2015 inflation rate of 0.8 percent, lower than the average rate of 0.86 percent recorded every July over the past five years.         Governor of Bank Indonesia (BI), the central bank, Agus Martowardojo, said on Friday that compared with the average 0.86 percent month-to-month (mtm) July inflation rate over the past five years, the inflation rate in July 2015 showed that the government had been able to curb the inflation rate.         "We have previously predicted that the mtm July 2015 inflation would be at 1.12 percent. But it turned out to be lower than that. This shows an improved condition," the Indonesian central bank governor noted.         BI officials expected that the July 2015 inflation rate would be lower than 0.8 percent, yet this level is relatively good and indicated the government¿s success in keeping inflation in check.