2011 HISTORIC YEAR FOR OVERSEAS MANPOWER PLACEMENT

By Andi Abdussalam

Jakarta, Dec 30 (ANTARA) - Head of the National Agency for Placement and Protection of Indonesian Migrant Workers (BNP2TKI) Moh Jumhur Hidayat said 2011 was a historic year for the Indonesian manpower agency.          He said that this year his agency was able to apply an online system which enable provincial and district level governments, which so far were not involved, to control the placement of workers overseas which had often created problems.          "Previously, regional governments complained because they were not involved in  the handling of Indonesian migrant workers. Many of their residents worked abroad without their knowledge. Now all this has been improved," he said.          In addition, the  BNP2TKI launched a call center service to accelerate the process for workers to obtain justice facing labor problems.          Not less important is its achievement to handle Indonesian migrant workers problem overseas.          "Only this year did the government of President Susilo Bambang Yudhoyono conducted an overall evaluation over the dispatch overseas of Indonesian domestic helpers after 40 years of problematic trap," he said here on Thursday.

ECONOMIC CONDITIONS IN 2011 CONDUCIVE

By Andi Abdussalam

Jakarta, Dec 28 (ANTARA) - Indonesia's macro economic conditions which were recently awarded the investment grade status have been viewed to be relatively conducive to economic developments in 2011.          During the year, Indonesia's economic indicators such as inflation, interest rates, foreign exchange reserves and others were considered to be improving. According to the Indonesian Chamber of Commerce and Industry (Kadin), these indicators showed that Indonesia's macro economic conditions were conducive to business developments.          The World Bank estimates that Indonesia's inflation at the end of 2011 will stand at 3.6 percent (year-on-year/yoy).  "The World Bank projection for 2011 inflation is 3.6 percent (yoy), certainly with a sustained increase in the price of components that are vulnerable to shocks," World Bank Lead Economist for Indonesia Shubham Chaudhuri said.         In the meantime, Bank Indonesia (BI) recorded that Indonesia's foreign exchange reserves in the year ended on November were recorded at US$111.32 billion. Though it fell from US$113.96 billion the month before, yet it was enough to finance imports.         "The foreign exchange reserves are enough to finance imports and repay the government's foreign debts for 6.4 months," the head of Bank Indonesia's public relations bureau, Difi A Johansyah, said.         Bank Indonesia (BI) has also lowered its key rate by a total of  75 basis points since October 2011.         Regarding the economic growth in 2011, the World Bank has predicted that Indonesian economic growth in 2011 would reach 6.4 percent. "Indonesian economy remains strong at a good position to face external turmoil, because its growth in 2011 is predicted to remain at the level of 6.4 percent," World Bank lead economist for Indonesia, Subhan Chaudri, said in the Indonesia Economic Quarterly.         He said Indonesian real economy remained strong in the third quarter of 2011 with the year on year Gross Domestic Product rose by 6.5 percent in the three consecutive semesters.  Besides, private consumption growth also remained strong like in the real export, although it dropped a bit in the second quarter following the global economic situation.         Although the foreign direct investment (FDI) slowed down in the past quarter, it was relatively strong and much bigger than the average FDI in the past two years.        And therefore he said the economic growth in 2011 was predicted to be around 6.4 percent.        Kadin Chairman Suryo Bambang Sulisto told a press conference on Wednesday that Indonesia's economic growth this year was predicted to be high while the inflation rate was relatively low in line with the improving business tendency.         Therefore, in line with the BI step to cut its rate to 6 percent, Kadin expressed hope that banks would lower their lending rates in 2012 to the 8 percent level.         "I think the 8 percent level is still realistic to be achieved. This should be achieved through the hard work of the government," said Suryo adding that it could not be understood if the BI Rate had been lowered but the landing rates were still high.         Regarding the economic growth in 2012, Suryo Bambang Sulisto said Kadin had predicted that it would slightly be lower than that in 2011, namely at a range between 6.2 and 6.4 percent.          If the government did not take anticipatory steps, global crisis will have heavy impacts on Indonesia's economic growth, so that the growth in 2012 will likely be lower than that in 2011.          Kadin also revealed its macro economic indicators for 2012,  namely inflation at a range of between 3.5 and 5.5 percent, crude price at US$90 per barrel, benchmark rate at 6.0 percent, poverty at 11.7 percent, rupiah exchange rate at a range of between Rp8,900 and Rp9,100 per US dollar and unemployment rate at 6.3 percent.         "The global crisis will obviously affect Indonesia so that the government should take anticipatory steps in the face of its negative impacts," Suryo said.         On the other hand, Indonesia's achievement in reaching an investment grade status indicated its strong macro economic fundamentals. The World Bank itself has hailed this achievement.         "The success of Indonesia to regain its investment grade status reflected its strong economic fundamentals that the government has successfully developed in the last ten years," the World Bank said in press released last week.          Even during the 2008-2009 global economic crises, Indonesia was able to withstand turmoil and to maintain its economic growth amid the downward trend of the global economic growth.          On December 15, 2011, International rating agency Fitch raised Indonesia's debt rating from "BB" to "BBB-" categorizing the country as investment grade which is good for long-term investment.          Chief economic minister Hatta Rajasa welcomed the raising of  Indonesia's debt rating to an investment grade by Fitch ratings agency saying it had boosted the government's confidence.         "Our optimism for 2012 is increasing because we initially thought  it would be achieved in 2012, not this year, so that the 2012 outlook will change, more confident, better as certain countries would use it as a reference for their investment," he said at his office here on Friday.          The investment coordinating board (BKPM)  has set a target of investment for 2012 at Rp283.5 trillion consisting of foreign investment worth Rp204.1 trillion and domestic investment worth Rp79.4 trillion.          In this case, BI Governor Darmin Nasution said that investment which in 2011 recorded a growth of 7.7 percent, was expected to experience an increased growth of about 9.7 - 10.1 percent in 2012 which in turn would maintain the people's purchasing power.          Kadin also expressed support to the government's investment target of Rp283.5 trillion in 2012 to reach a total investment of Rp2,600 trillion in the country next year.          On the country's investment target of Rp2,600 trillion to be reached up to 2012, Kadin Cchairman Suryo Bambang Sulisto said the figure would come from gross fixed capital formation or physical investment in the country which was expected to reach Rp2,300 trillion at the end of this year.      (T.A014/A/H-NG/11:30/A/O001) 29-12-2011 11:36:3

2011 OPTIMISTIC TOURISM TARGET UNLIKELY TO BE ACHIEVED

by Andi Abdussalam

Jakarta, Dec 28 (ANTARA) - A record 7.6 million tourists are expected to have visited Indonesia by the end of 2011 or up 0.6 million from last year, but the figure is below the government's optimistic target of 7.7 million.          The Tourism and Creative Economy Ministry predicted over the weekend that about 7.6 million foreign tourists will have arrived in Indonesia until the end of the year.          "The figure is quite good because to achieve it we had to overcome many obstacles," Vice Minister of Tourism and Creative Economy Sapta Nirwandar said on Thursday.          He said the figure exceeded the moderate target of 7.5 million tourist arrivals for this year. The ministry had set three alternative tourist arrival targets for 2011, namely a pessimistic, moderate and optimistic target or 7.2 million, 7.5 million and 7.7 million respectively.          According to the Central Board of Statistics (BPS), the number of tourist arrivals in the ten months through October 2011 has reached 6.27 million, an 8.47 percent increase compared with 5.78 million in the same period last year.          The Indonesian government was early this year convinced that it would achieve its optimistic target, saying 2011 had a positive aura for its tourism. It announced its optimistic target of attracting 7.7 million foreign tourists into the country in 2011, up about 10 percent from 7,000,571 arrivals in 2010.          The government raised by 10 percent the foreign tourist arrival target because it was convinced that the world now had a good perception of Indonesia that could attract more visitors.          "Indonesia has a positive aura in 2011 so that we set an optimistic target of 7.7 million foreign tourist arrivals in the country," then culture and tourism minister Jero Wacik said in a year-end press conference.          Besides the optimistic target, the minister also set a pessimistic target of 7.3 million arrivals as a "performance contract" target of the culture and tourism ministry with the Indonesian President.          If the ministry's prediction of 7.6 million arrivals by the end of 2011 is true, it means that the government fails to achieve its optimistic target of 7.7 million.          Yet, Sapta still hopes it would be achieved. "Indeed the figure 7.6 million is merely a forecast. At the end of this year we will have a lot of programs in a number of border areas which are expected to increase the number of tourist arrivals," he said.          He said tourism was among the sectors which were highly sensitive to current issues and therefore the number of tourist arrivals would also depend on external factors.          Among the obstacles met in the efforts to increase the number of tourist arrivals were negative media reports on Indonesia, including bomb blasts in a number of places in Indonesia and unrest in several parts of the country, he said.         "The tourism sector is sensitive to security issues and therefore, we must deal with the security issues together," he said.         Tourism and Creative Economy Mari Elka Pangestu also expressed optimism early this month that the optimistic target would be achieved.           "We are optimistic the target of foreign tourist arrivals this year will be met. Although there is a debt crisis in Europe it has not affected tourist arrivals," the minister said.          After all, November and December are peak seasons for foreign tourists to arrive in Indonesia. So, the target set at 7.7 million with foreign exchange earnings of US$8.47 billion is most likely to be achieved.          In the meantime, the Tourism and Creative Economy Ministry has also set the target of tourist arrivals for 2012 at 8 million, with foreign exchange earnings projected to reach US$8.98 billion.          In anticipation of unexpected developments next year, the ministry had set three versions of tourist arrival targets, namely a pessimistic target of 7.8 million, a moderate target of 7.9 million and optimistic target of 8 million.         Sapta said in order to achieve the target next year, his ministry will apply an integrated strategy by disseminating the Wonderful Indonesia tag-line, introducing match market products, targeting specific segments and reinforcing the popularization of market activities.          Minister Mari Pangestu said Indonesia did not need to worry about its tourism developments as it had potentials to be developed.          "We need not worry about our tourism because we have big tourism potentials. Indonesia is the largest archipelagic country and is the world's fourth most populous nation with a population of 237 million," the minister said.          She said that Indonesia stretched 5,120 km from the east to the west and 1,760 km from the north to the south. Besides, it was ranked in the 39th position among 139 cultural heritage rich countries.          "We have eight World Cultural Heritage Sites with the potentials to serve as host for various international festivals and exhibitions, as well as strong creative industries," the minister said.          From the age aspect, the minister said that most of the Indonesian people were still at the productive age of less than 29 years old.          "The tourism sector is Indonesia's safety belt against global crisis because it is not as fragile as other sectors such as trade," she told a seminar organized by ANTARA National News Agency early this month.     (T.A014/ A/H-NG/1235/O001) (T.SYS/A/A014/O001) 28-12-2011 12:48:

RI'S TOURISM TO SERVE AS SAFETY BELT AMID GLOBAL CRISIS

by Andi Abdussalam

Jakarta, Dec 8 (ANTARA)- Indonesia's tourism which has continued to grow in recent years is considered immune to the impact of  economic crises so that it is being touted  as a safety belt for the country in the face of the ongoing global economic meltdown.          "Indonesian tourism is not vulnerable to economic crisis so that the tourism sector along with the domestic market can serve as a safety belt for the national economy," Tourism and Creative Economy Minister Mari Elka Pangestu  said on Wednesday.          Over the last three years, the number of foreign tourist arrivals in the country has continued to increase where in 2009 it rose to 6.4 million and to over 7 million in 2010. This year the tourism ministry is targeting 7.7 million arrivals.          "The tourism sector is Indonesia's safety belt against global crisis because it is not as fragile as other sectors such as trade," she said at a  seminar organized by ANTARA National News Agency.          The increase in the number of tourist arrivals indicates that tourism is not much affected by global crisis, just like other tourism in the world. The UN-World Tourism Organization (UNWTO) recorded a positive growth in  global tourism, namely 6.6 percent in 2010 while up to recently it had risen to 4.5 percent     This was a positive development if it is compared with its development during the previous crisis when it faced a global challenge. The development of the tourism sector in the span of 15 months in the 2008-2009 period experienced negative growth.          "We need not  worry about our tourism because we have big tourism potentials. Indonesia is the largest archipelagic country and is the world's fourth most populous nation with a population of 237 million," the minister said.          She said that Indonesia stretched 5,120 km from the east to the west and 1,760 km from the north to the south. Besides, it  was ranked in the 39th position among 139 cultural heritage rich countries.          "We have eight World Cultural Heritage Sites with the potentials to serve as host for various international festivals and exhibitions, as well as strong creative industries," the minister said.          From the age aspect, the minister said that most of the Indonesian people were still at the productive age of less than 29 years old.          All these are assets in the development of Indonesia's tourism which raises the government's optimism. Therefore, Mari Elka Pangestu said she was optimistic the country's foreign tourist arrival target for this year - set at 7.7 million -  would be met.          "We are optimistic the target of foreign tourist arrivals this year will be met. Although there is a debt crisis in Europe it has not affected tourist arrivals," the minister said.          According to the chief of Central Board of Statistics (BPS) Deputy Chief for distribution and service statistics, Djamal, the number of tourist arrivals in the ten months through October 2011 has reached 6.27 million, an 8.47 percent increase compared with 5.78 million in the same period last year.          After all, November and December are peak seasons for foreign tourists to arrive in Indonesia. So, the target set at 7.7 million is most likely to be achieved.          It is this reason that the Tourism and Creative Economy Ministry has set the target of tourist arrivals for 2012 at 8 million, with foreign exchange earnings projected to reach US$8.98 billion.          The figure represented a 7.35 percent increase compared to this year's, the director of the ministry's market development, Sadar Pakarti Budi said meanwhile.          In anticipation of unexpected thing next year, the ministry had set three versions of tourist arrival targets, namely a pessimistic target of 7.8 million, a moderate target of 7.9 million and optimistic target of 8 million, he said.          He expressed his optimism the tourism industry would grow positively according to the target thanks to the improving competitive edge of the Indonesian tourism.          The competitive edge of the Indonesian tourism would become increasingly stronger in terms of budget, tourist arrivals, foreign exchange earnings, representative offices and direct flight seats which currently stood at 15 million.          "So far we have provided visa-free facilities to 12 countries and visa-on-arrival (VOA) facilities to 64 countries," he said.          That's why, Tourism Minister Mari E Pangestu said the number of foreign tourist arrivals in the last two years had  shown an upward trend. "Even in July 2011 we experienced the highest point of tourist arrivals in the last three years which reached 750 thousand persons per month," she said.          In October this year for example, more than 656 thousand foreign tourists visited Indonesia, up 10.32 percent from 594.7 thousand in the same period last year, the Central Statistics Agency  said.          Compared to September 2011, the number of tourist arrivals in October 2011 rose slightly by 0.91 percent, said Djamal.           To achieve the tourist arrival target of 8 million, the ministry would apply an integrated strategy by among others disseminating tag-line Wonderful Indonesia, eying special segments and intensifying marketing activities.***5*** (T.A014/A/HAJM/18:22/A014) 08-12-2011 18:29:2

BIMA CLASH NEEDS TO BE INVESTIGATED INDEPENDENTLY

By Andi Abdussalam

Jakarta, Dec 26 (ANTARA) - While an investigation into  bloody clashes between security forces and local people  that claimed the lives of nine people in Mesuji, Lampung province, was still in progress, another incident involving police and residents happened  in Bima district, West Nusa Tenggara (NTB), on Saturday, leaving to  two locals dead.         Many quarters, including chairman of the Muhammadiyah Islamic organization Din Syamsuddin, legislators, mining officials  and a  legal aid institute (LBH), urged the government to investigate the Bima incident thoroughly in order to uphold the law.          "Law enforcers must find the parties responsible for the incident because the violence constituted  human rights violations ," Din Syamsuddin said after inaugurating a mosque in Jepara, Central Java, on Sunday.          Din said he was sad about the incident because it had claimed the lives of people. Moreover, the dead victims included a member of Muhammadiyah, Indonesia's second largest Muslim organization which claims to have about 25 million members.          He said the clash between police and demonstrators began with the rejection by residents of the presence of a mining firm in their area. Law enforcers should settle the problem of people's aspirations  through dialogs or through  a discussion forum, he said.          "I hope clashes  like those in Bima will not also happen  in other regions," Din said.           The same hope was aired by a top Democratic Party legislator  who said the incident should become an important lesson in enforcing the law. "I have instructed  Democratic Party faction members in the House of Representatives hailing from NTB to visit the location where the clash happened and make consolidation and coordination with the local government," chairman of the Democratic Party faction  in the House of Representatives (DPR), Mohammad Jafar Hafsah, said.          Mohammad Jafar Hafsah said that as chief of the Democratic party faction in the House, he had consolidated especially with members of the House commission VII from the Democratic Party overseeing mines and energy affairs in an effort to get a comprehensive report on the Bima clash.          Chief of NTB's Energy and Mineral Resources Office Eko Bambang Sutedjo said meanwhile that residents' demand for the revocation of the mining license (IUP) issued by Bima district Head  Ferry Zulkarnaen should be settled through  legal channels.          The local people's demand for the revocation of the IUP could be settled through a legal process, namely a review by the State Administrative Court (PTUN).          "Any opposition to a government policy should be settled through  legal channels, not through street protests which always  tend to become  anarchic," Eko said.          A clash between police and demonstrators broke out at Sape Ferry port in Bima district, West Nusa Tenggara (NTB), on Saturday claiming two lives. It happened when security officers tried to forcefully drive away a group of local residents who had occupied the ferry port since December 20, 2011.          The residents who called themselves  members of an anti-mining front, had occupied the port and demanded that the Bima district head retract his  decision to allow mining firm PT Sumber Mineral Nusantara to operate in the district on the ground the company's operations had damaged the environment.          During the clash,  police confiscated 20 machetes, four crescent blades, 10 spears, some large and small stones and Molotov cocktails as evidence. Apart from that, the police also seized  gasoline in "aqua" bottles, a black bag, a Carry Pick-Up car, a motorcycle, a megaphone and other public speaking equipment.          The local police chief said after the demonstrators had left the scene, an angry mob had also torched the Lambu police precinct and  several other government office buildings.           They vandalized the office of the Lambu police precinct and set fire to his official residence, four  police dormitories, and a Bank Tabungan Negara (BTN) building.          In addition, they also vandalized a forestry office, a youth and sports office and 25 houses.         Until Sunday, police had named 47 people suspect over the clash in which, according to police,  two people were killed, but another source said there were three fatalities.          "The Bima police resort has so far questioned 47 suspects. They are members of the Anti-Mining People's Front who were involved in blockading actions and arson," spokesman of the National Police Insp. Gen. Saud Usman Nasution said on Sunday.          He said police investigators would interrogate each of the suspects for their alleged part in the violent acts which  included the occupation of  the Sape ferry port, vandalizing and setting fire to public facilities.          "All the suspects will be interrogated about their involvement in the incident," he said.          Yet, a legal aid institute urged the government to set up an independent investigation team because the clash involved security officers and demonstrators.         LBH Keadilan (Legal Aid for Justice Institute) called on President Susilo Bambang Yudhoyono to set up an independent team to soon investigate the Bima case in  which three people were killed.          LBH Keadilan in a press statement made available to ANTAR on Sunday said the independent team should be composed of civilians and academics. Without an independent team, it was feared the law would not  enforced fairly.          The bloody Bima clash which has added to the  number of violent police-people confrontations  happening in the country, is a serious case that has to be solved with the partcipation of  independent investigators, it said.          In order to prevent the occurrence of the same conflict in other areas, LBH Keadilan called on the president to form a special team to settle  conflicts over natural resources and agrarian issues. Without a special team, natural resource related conflicts would continue to take place, it said.          (T.A014/B/HAJM/14:50/f001) 26-12-2011 15:00:

FLOODS BEGIN TO AFFECT VARIOUS PARTS OF INDONESIA

by Andi Abdussalam

Jakarta, Dec 27 (ANTARA)  - In the run-up to the end of the year this week, the on-going rainy season has begun to trigger floods in various parts of Indonesia such as in Sumatra, Java, Sulawesi and Kalimantan.          The Meteorology, Climatology and Geophysics Agency (BMKG) has warned that flash floods may happen in various vulnerable areas in the country, including Jakarta at the end of the year.          "There is snowstorm in Hong Kong where pressures on the earth surface will rise by 10 millibars, creating dry weather," Head of BMKG for climate change affairs Dr Edvin Aldrian told a discussion over the weekend.          He said that flash floods like that in Jakarta in 2007 could take place again in the capital city in January which could be detected by the advent of the cold surge or the Siberia winds blowing from the north to the south.          The cold surge factor will put enough pressures on Jakarta from the sea and from the atmosphere when local rains fall incessantly.  This will be worsened by the Maden Julian Oscillation (MJO) phenomenon.          "The MJO is now changing to the wet phase which would increase water gas. Cold surge usually causes disasters if it comes at the same time as the arrival of the MJO phase," Edvin said.          Therefore, he warned that flash floods might hit the country, particularly Jakarta, at the end of the year or early in January.         Although significant flash floods have yet to take place in the capital city, flood waters have hit many areas in Indonesian islands such as Sumatra, Java, Sulawesi and Kalimantan.          In Riau province in Sumatra for example, floods inundated seven villages comprising 1,151 houses in Kampar Kiri subdistrict, Kampar district on Monday as a result of incessant rain that caused three rivers to overflow their banks.         "Besides inundating residential areas and houses, the floods also inundated village offices, school buildings, plantations and other people's properties," Kampar Kiri subdistrict head Febrinaldi said.  The three rivers that overflowed their banks were the Subayang river, the Setingkai and the Seingingi river.         The floods in Riau have of late affected 1,151 houses, 1,283 families, 5,017 residents, 611 hectares of farmland, 184 hectares of agricultural land and 245 hectares of animal husbandry land.          The water surface of the Musi River in South Sumatra province has also increased affecting locals who reside at river bank areas over the past one week. Local resident Dani (36) of Ulu Laut village, Ulu Seberang sub district, Palembang, said residents in the river bank areas had been affected since in the last one week.          In the Bandung district, West Java, a legislator called on the local government to comprehensively solve the flood problem that occurred in the areas between the district of Sumedang and Bandung, so that it would not create new problem with the spatial planning.          "It should not be settled only partially," Cecep Suhendar of the Bandung district?s Legislative Assembly (DPRD) said.          He said the rain-triggered floods had taken place because a number of rivers in the area such as the Citarik, Jatinangor and other steams overflowed their banks because they could not accommodate the water volumes due to silting.          In Central Java, a flash flood swept through  Windurejo village in Pekalongan district on Monday evening, leaving at least 14 houses seriously damaged. The flash flood occurred after a hill near the Gondok River collapsed, causing it to overflow and engulf nearby residences. The flood also inundated hundreds of other houses in the village.          By Monday night, heavy rains continued to fall in a number of areas in the district, forcing residents living in flood-hit areas to evacuate to higher ground. Chief of the Pekalongan police resort Adj Comr Habif said police, along with local people were trying to evacuate the affected people in the village.          Tens of other houses were also affected by floods as their areas were submerged by waters in Telang Housing Complex, Kamal sub district, Bangkalan, Madura, East Java, on Monday.         "The water in my house is knee-deep," said Bety Wirandini, a resident who was affected by the flood said. Bety who is also a member of the executive board of the Islamic Students Association of East Java said that the floods occurred because the sewage system did not function well.          Other areas in East Java affected by floods included those in Sidoarjo district such as Sidokare and its surroundings and Pucang Sidarjo. Dwi Retno, a resident in Sidokare said that rain had fallen over the past few days while rivers could not accommodate the water volume as a result of river erosion and silting.          In the meantime, floods also hit a number of areas in Sulawesi and Kalimantan. In South Sulawasi,  rain showered the capital city of Makassar creating water inundation in a number of points with a water depth reaching the thigh-deep level.         The Bung Housing complex and the Hamzi BTN housing which are situated near the Tallo River which overflowed its banks on Monday are among areas in Makassar which were affected by floods.         Legislator Iqbal Djalil of Makassar DPRD said the floods had taken place because, among other things, the drainage networks were not well integrated and connected so that water was not disposed to the sea.          In West Kalimantan, Pimpinan village about 300 km to the north of provincial capital Pontianak, was also affected by floods. Incessant rains on Sunday night sent a flood to the village with a water depth of about 50 centimeters.          "Rain has been falling since last night and until now it is still going on causing flood waters in Pimpinan village," Ridwan, a junor high school staffer in Pimpinan village, Teluk Keramat sub district, said.          He said that tens of houses had been inundated by flood waters.           Besides, several sections of the West Kalimatan Northern Highways were also inundated as a result of water overflows over the past two days.          Secretary of the Indonesian Medical Association (IDI) for West Kalimantan Dr Nursyam Ibrahim called on the people of West Kalimantan to keep on alert over pestilence outbreak after floods.          "Almost all parts of West Kalimantan are affected by floods of late. So, we call on the people to be alerted over a possible outbreak of pestilence which is caused by rats," Nursyam said.     (T.A014/A/H-NG/10:30/O001) 27-12-2011 11:11:

GOVT TO LIMIT CONSUMPTION OF SUBSIDIZED FUELS IN 2012

By Andi Abdussalam

Jakarta, Dec 23 (ANTARA) - After  several delays, the government is now determined to carry out its policy to limit  consumption of subsidized fuel oil next year in an effort to reduce subsidies that have so far burdened the state budget.           Energy and Mineral Resources Deputy Minister Widjajono  Partowidagdo said the policy would first be implemented in Jakarta and then be continued in the capital's buffer towns of Bogor, Depok, Tangerang and Bekasi.          "After that we will continue the implementation of the policy in West Java, Java and Bali," Widjajono said. He said that up to 2015,  the subsidized premium gasoline and  diesel oil consumption limitation measures would have covered  all private vehicles in Indonesia.          Thus, later on, the government will only provide fuel subsidies for public transportation vehicles and motorcycles. "This program will reduce subsidies significantly," he said.           Oil and Gas Director General Evita Legowo said the government was now in the process of revising Presidential Regulation No. 55 / 2005 and Presidential Regulation No. 9 / 2006, which regulated parties who had the rights to consume subsidized fuels.          "We have set the target to revise the presidential regulations at the end of December or in January next year," she said.           Law No. 22 / 2011 on the 2012 state budget regulated that the limitation of subsidized premium gasoline consumption for private cars in Java and Bali should be started on April 1, 2012.          In the law, the fuel oil quota for 2012 was set at 40 million kiloliters with a reduction option of 2.5 million kiloliters through the implementation of the consumption limitation program.          Regarding the government's plan to implement the program, a legislator said that the government had decided to implant the program due to the increasing price of the world crude price. However, the government's step was too reactive to the world crude price hike while when taking polices regarding the matter it did not consider much negative implications,     "The government's reactive options are feared to create negative implications on premium gasoline consumers, refueling premium gasoline stations (SBPUs) and state-owned oil and gas company Pertamina," legislator Bambang Wuryanto, secretary of the Indonesian Democratic Party of Struggle (PDIP) said here on Friday.          Earlier, the government has reacted to the world crude price which rose to US$100 per barrel and caused the country's fuel oils (BBM) subsidy to increase from the estimate of Rp126 trillion to Rp198 trillion in 2012.          Thus, the government is planning to implement its program to cut subsidized premium gasoline consumption. Beginning on April 1, 2012, all private cars are no longer allowed to consume subsidized premium gas but Pertamax ( non-subsidized fuel).          Besides, the government will also replace premium gasoline with gas fuel (BBG) for South Sumatra, Java and Bali regions.          According to Bambang who is also member of the House Commission VII on energy affairs, if the government did carry out its too reactive plans, it meant that it would give a big homework for Pertamina and SBPU owners.          "Pertamina and SBPU owners have to make available pertamax dispensers. About 4,000 SBPUs in the country still have no dispensers. The investment needed for one dispenser is about Rp2 billion, which means that an investment of Rp8 trillion would be needed," he said.          He said that SBPU owners must earmark money for the purchase of dispensers. "It is the SBPU owners who will pay the dispensers. This will clearly put a heavy burden of small SPBU owners," he added.           Yet, a Pertamina official said that more than 2.7 thousand refueling stations have now ready to implement the program.           A total of 2,704 gasoline refueling stations  are now ready to implement the government's program to cut consumption of subsidized premium gasoline.           Spokesman of state-owned oil and gas firm Pertamina, M Harun said Friday with  2,704 SPBUs now ready to execute the subsidized premium consumption reduction program,  the target of having 2,500 such stations at the end of 2011 was considerably surpassed. "The 2,704 SBPUs are now ready to sell pertamax," he said.          According to Bambang, there is still other problems, namely the fact that the price of Pertamina's pertamax at SBPUs would not be able to compete with that of foreign SPBUs like that of Shell, Petronas and others.          "This could be concluded that the government policy will benefit foreign SBPUs while ruining those of Pertamina. It will widen the market of foreign SBPUs and narrow the market of Pertamina," he said.          After all, all private cars are required to consume pertamax. Based on a research in Jakarta and in its satellite towns of Bogor, Depok, Tangerang and Bekasi (Jabodetabek), luxury private cars only accounted for 1.4 percent, while those with a price of lower than Rp200 million reached 54 percent.          "This will put a burden on the owners of the private cars because they most likely have no enough savings to purchase pertamax," Bambang said adding that this did not yet include pick up (open box cars) such as those used to transport vegetables or other commodities in traditional markets.          This will also trigger further inflation for basic commodities whose prices have so far been high.      The same thing also true to the government plan to convert the use of premium gasoline to BBG. It is inefficient as dispensers must be made available at every SPBU, converter in every car, supply of BBG to SPBU and the absence of gas supply analysis.         "This means that before implementing its policy, the government should first prepare the needed infrastructures," he said.     (T.A014/A/HAJM/23:00/H-YH) 23-12-2011 23:03: