BUSINESSES EXPECTED TO GROW WITH INSURED CREDITS

By Andi Abdussalam

Jakarta, May 13 (Antara) - Small and medium enterprises (UKM) should not be apprehensive regarding their business credits as the government has attempted to minimize credit risks through cooperation between a state-owned money-lending agency and a state credit insurance company.          The Agency for Revolving Fund Management for Cooperatives and Small and Medium Enterprises (LPDB-KUKM) has cooperated with state-owned credit insurance company Perum Jamkrindo to minimize the risks of non-performing loans (NPL) of UKM.           Last week, a cooperation agreement between the LPDB and Perum Jamkrindo was signed by the leaders of the two government institutions in Jakarta, on Wednesday.          Besides this, the LPDB-KUMKM has also cut its interest rate on loans from 6 to 5 percent this year. The LPDB's interest rate has been reduced to 5 percent considering that it is a non-profit institution aimed at offering business stimulus in the form of revolving funds to small businesses.

INDONESIA DEVELOPS SEAWEED DOWNSTREAM

By Andi Abdussalam

Jakarta, May 12 (Antara) - Indonesia, a major world seaweed producer which exports about 90 percent of its seaweed production, is developing the downstream sector of the commodity to tap its added value in the export market.          For this purpose, the government will soon build 10 factories to process seaweed into flour and chips that would increase the added value of the commodity. So far, the country exports the commodity in the form of unprocessed dry seaweed.          "The country's production of dry seaweed at present is around 10 million tons per year and 90 percent of the production is exported," Maritime Affairs and Fisheries Minister Susi Pudjiastuti said on Monday.          Based on this fact, the Indonesian Seaweed Association (ARLI) hopes that the Indonesian government would formulate a program for the development of seaweed in the downstream sector to optimize the commodity's potential in various regions for the benefit of the country's economy.         "We support the government's efforts to develop seaweed in the downstream sector, and we hope that the government will prepare the  program maturely and seriously," Safari Azis, the chairman of the ARLI, stated over the weekend.

HOUSING PROGRAM FOR LOW-INCOME PEOPLE IN PROGRESS

By Andi Abdussalam

Jakarta, May 11 (Antara) -- The Indonesian government is developing houses under its one million housing development program to provide 603,516 shelters to the country's low-income people (MBR) and 396,464 others to non-MBR families.          President Joko Widodo, who is popularly known as Jokowi, recently (April 29) launched the one million housing development program simultaneously in nine regions through a video conference centered in Ungaran in Semarang, Central Java.          In Ungaran, the president conducted the ceremonial groundbreaking for the construction of 103,135 houses as part of the first phase of the construction of one million houses.          In the first phase, the government will build 331,693 houses for low-income people in the nine regions of Semarang, North Sumatra, South Sumatra, Jakarta, Banten, West Java, East Java, Central Kalimantan and South Sulawesi.          In these regions, the laying of the cornerstones was carried out simultaneously, marking the beginning of the construction of one million houses. It was done through a video conference with the president.          Of the 603,561 units of houses prepared for low-income people, 331,693 will be built in the first phase, 98,020 in the second phase and 173,803 in the third stage.          Public Works and Public Housing Minister Basuki Hadimuljono had said that his ministry will commence work this year to reduce the large backlog in the implementation of the housing program.

ECONOMIC GROWTH TO REBOUND IN SECOND QUARTER

By Andi Abdussalam

Jakarta, May 10 (Antara) - The Indonesian economy grew at a slower pace in the first quarter of 2015 with a growth rate lower than that in the corresponding period in the previous year.          The low global oil prices, declining of exports, weakening of the rupiah and the late disbursement of government budget for development have among other things, been attributed to the slower pace of the economy.          The Young Indonesian Businessmen Association (Hipmi) has attributed the current economic slowdown in the country to slow disbursement of state budget funds for various infrastructure projects.          The economic slowdown indicated by the first-quarter economic growth was inseparable from the weak performance of budget realization at central and regional levels, chairman of the Himpi executive board Bahlil Lahadalia said on Tuesday.          Although Indonesia's economic performance has slowed down over the past few months due to a number of factors, yet the government is convinced the country's economy will grow better in the second quarter of 2015.          In the second semester, the government will begin disbursing funds for infrastructure development. Finance Minister Bambang Brodjonegoro said the absorption of budget for infrastructure had been low because the Revised 2015 State Budget (APBN-P) was endorsed by the House only in February, 2015.

BUSINESS OF BOND ISSUANCE EXPECTED TO IMPROVE IN Q2

By Andi Abdussalam

Jakarta, May 9 (Antara) -- Despite delaying the issuance of bonds in Indonesia due to the economic gloom last year, several companies see better prospects in the second quarter of 2015 even though it is still overshadowed by economic slowdown.          An analyst of PT Pefindo Riset Konsultasi, Guntur Tri Hariyanto, said that the prospects of issuing corporate bonds in Indonesia in the second quarter of 2015 will be better, although the downward trend of the economy and the weakening of the rupiah will continue to prevail.         "Since early this year, the performance of Indonesian corporate bonds has been one of the best in the world, despite being overshadowed by risks at home," Hariyanto stated on Friday.          He added that domestic bonds received positive response from investors because they offered high coupon interest amid the downward trend in the coupon values of global bonds.          For instance, the yield of the government's 10-year bonds, which serve as a reference of bond coupons in the country, reached 7.7 percent as compared to that of the United States' market, which offered 2.1 percent.

GOVERNOR'S IDEA TO LEGALIZE PROSTITUTION SPARKS CONTROVERSY

By Andi Abdussalam

Jakarta, May 6 (Antara) - Alleged rampant online prostitution has led Jakarta Governor Basuki Tjahaya Purnama (Ahok) to propose an idea to legalize, certify, and localize prostitution in a bid to tackle the social vice.          However, the governor's idea has stirred up a hornet's nest as it runs counter to morality. Condoning, let alone legalizing, certifying, and localizing prostitution just means justifying slavery and human trafficking as prostitution is not free from these practices.          "Within the system of prostitution, there is slavery. With or without certification, you can find exploitation, criminalization, human and even child trafficking there," Minister of Social Affairs Khofifah Indar Parawansa stated on Thursday last week.          Therefore, the minister voiced his objection to the Jakarta administration's plan to provide certification to sex workers in the capital city.          Earlier, the Jakarta governor had recommended that the city administration should legalize prostitution in certain areas.          The governor noted that legalizing prostitution in certain areas will provide an alternative solution for it.          "Legalizing a prostitution site would be a solution because no matter how hard we try, we will never be able to eradicate prostitution. It will always exist as long as humans exist," Governor Ahok emphasized.

JOKOWI EXPECTED TO RESHUFFLE WORKING CABINET

by Andi Abdussalam

Jakarta, May 5 (Antara) -- Six months into his term, President Joko Widodo, who was installed as Indonesia's seventh president last October, is expected to reshuffle his cabinet ministers as they are believed to be underperforming.          Of late, some quarters have been voicing the need for Jokowi, as the president is popularly known, to reshuffle his Working Cabinet to make his government run more effectively.          "As seen in the performance of the Working Cabinet, only a few ministers have been active and carrying out their duties based on the tasks given by President Jokowi. Others give the impression that they did not perform the given tasks," a sociologist of the Gorontalo State University, Rudy Harold said last month.          There have been indications that Jokowi will finally review his cabinet ministers, as pointed out by Vice President Jusuf Kalla on Monday.          Kalla confirmed that the government will reshuffle its current cabinet to improve its performance.         "Yes, it will be done as performance needs to be improved, and it will need people with the required capabilities," he stated at his office but did not mention when the reshuffle will take place.