Indonesia Topics

China and India gain popularity through the existence of “Chinatowns” and “Little Indias” all over the world. Now, Indonesia is set to follow suit by opening a permanent market in Shanghai on May 22.

The market, called “Indonesia Street”, will display high quality Indonesian products with competitive prices, according to Sukardi Koto, the CEO of Indonesia Street Shanghai.

“I often receive orders from Chinese business players. They are enthusiastic about Indonesian products because of good quality and affordable prices,” Sukardi said, as quoted by Antara.

In the long term, Sukardi added, another 10 Indonesian markets will be opened in 10 big cities in China.

“Indonesian business firms hope the Indonesia Streets will make it easier to attract Chinese customers and penetrate the market,” Sukardi said.

He said the Indonesia Street market, sponsored by Indonesian businesses and supported by the Indonesian and Chinese governments, would be a permanent feature so that people could visit whenever they want.

“We decided to open a market in Shanghai because it is a developed city with good infrastructure… and very strategic for business.

“Shanghai is not too far from Indonesia and there is a growing furniture production and retailing industry in the surrounding area, so we can promote our products there,” Sukardi said.

Projecting Indonesian artifacts and lifestyle, the market is also aimed at promoting Indonesian culture to the Chinese people.

“Indonesia Street will provide all things Indonesian.

“We aim to promote Indonesian culture as well as products and support the growth of Indonesian exports,” Sukardi said.

According to the Central Statistic Agency, Indonesia recorded an increase of 33 percent in total trade with China, from U$$10.97 billion in 2006 to $14.62 billion in 2007.

Non-oil and gas exports to China increased by 22 percent last year, from some $5.47 billion in 2006 to some $6.66 billion. Non-oil and gas imports from China increased by 45 percent, from $5.5 billion to $7.9 billion. (The Jakarta Post)

Former Microsoft’s CEO Bill Gates arrived in Indonesia this morning and will meet the Indonesia President Susilo Bambang Yudhoyono in his palace this afternoon at 4pm. Tomorrow, Gates will be the keynote speaker in two events: Presidential Lecture and Government Leaders Forum Asia 2008 in Jakarta.

The visit of Bill Gates will be used by the Indonesia govt to promote Visit Indonesia 2008. Apart from that, Indonesia would also love to have Bill Gates’s business investment .

Indonesia will soon raise fuel prices by up to 30 percent to avoid a budget blowout amid the soaring cost of oil on the global market, the government said Monday.

The decision to cut subsidies that keep gasoline, diesel fuel and kerosene affordable to the country’s millions of poor risks nationwide demonstrations and political opposition from parties jockeying for position ahead of elections next year.

The government last raised prices in 2005, defying protests and winning praise from international donors. To cushion the blow, it provided direct cash payments to the poor - a policy it is sure to repeat this time around.

President Susilo Bambang Yudhoyono said the government was no longer debating whether to raise prices,but rather by how much and when. The discussion now is “whether it will be 20, 25 or 30 percent and why will it be that,” he said.

Senior Economic Minister Boediono said the government was planning to raise prices in the “coming weeks” and that the poor would receive some form of direct compensation. He gave no more details.

Any price hike is sure to trigger inflation in the country of235 million people and risk hurting economic growth as its poorest citizens struggle to afford rice and other staples amid rising food costs.

Still, most in Indonesia agree the current level of fuel subsidies are unsustainable as global prices hover around US$117 a barrel.

Critics note they are also enjoyed by many of its wealthiest citizens, who currently spend just under half a dollar for a liter of gasoline for their cars.

Indonesia is Southeast Asia’s largest oil producer and a member of OPEC, but it has to import oil because of decades of declining investment in exploration and extraction.

A big fuel price increase in 1998 triggered rioting that helped topple former dictator Suharto. Protests also forced former President Megawati Sukarnoputri to scale back a fuel price increase in 2002.(The Jakarta Post - The Associated Press)

The 2008 state budget will withstand heavy pressure from skyrocketing oil prices until the Indonesian Crude Price (ICP) averages US$125 per barrel, a senior official says.

The director general of oil and gas at the Energy and Mineral Resources Ministry, Luluk Sumiarso, said the government did not need to worry about plugging the swollen fuel subsidy because it was still expecting to enjoy a surplus from oil price hikes at $125 a barrel.

ICP is the country’s oil price benchmark used for oil transactions and state budget assumptions. The ICP is usually slightly lower than the global price of oil.

The ICP price from January and March averaged $103.10 per barrel, according to ministry data. This was lower than the widely used U.S. crude oil benchmark, WTI, which averaged $105.46.

Still, the ICP has surpassed this year’s state budget assumption of $95 per barrel. Using this assumption, the government allocated Rp 126.82 trillion for fuel subsidies and Rp 60.29 trillion for electricity subsidies this year.

The figures are almost triple previous estimates.

Luluk’s remarks come as global oil prices hover at a new historic high of $115 a barrel, sparking concern for the sustainability of the state budget.

He did not say what measures would be taken if the ICP’s average surpassed $125 a barrel.

Energy and Mineral Resources Minister Purnomo Yusgiantoro ruled out Thursday the option to raise domestic fuel prices to ease the subsidy burden, reiterating the government’s pledge to not do so until 2009.

Rather than increasing fuel prices, Purnono said, the government would intensify efforts to slash the amount of subsidized fuels on the market, using various programs including “control cards” for households eligible for fuel subsidies.

This year, the government capped the amount of subsidized fuel at 35.5 million kilo liters (kl), down from 38.6 million kl last year.

Responding to whether the government should impose a windfall profit tax on oil producers (who are benefiting the most from the oil price hike), Purnomo said this would only be applicable to certain contracts.

“We are studying the state of the contracts because we should uphold the integrity of contracts.

“We are in talks with some producers to revise the fiscal terms and conditions, but we are not going to apply it (the windfall profit tax) in general,” he said.

He said the current production split (of 85:15 in favor of the government) still benefited the government.

The Indonesian Petroleum Association (IPA) vice chairman Sammy Hamzah said a windfall profit tax was actually understandable, although prior discussions with producers were needed to make sure it would be mutually beneficial. (The Jakarta Post)

As Indonesia faces accelerating inflation that may trim the country’s expected economic growth, the House of Representatives’ financial commission approved Monday chief economic minister Boediono as the nation’s 13th central bank chief.

The decision was made through a vote after the commission held “fit-and-proper” test to examine Boediono’s vision and mission for leading Bank Indonesia (BI).

Boediono, the coordinating minister for the economy, received votes from 45 of the 46 lawmakers attending the Commission XI selection panel, which previously rejected President Susilo Bambang Yudhoyono’s two central bank governor candidates.

The House is slated to confirm the appointment at a plenary session on Tuesday, or by April 10.

Boediono will succeed Burhanuddin Abdullah, whose five-year term expires May 17.

During the assessment session, the 65-year-old former Gadjah Mada University economics professor said he would improve BI’s role as monetary stabilizer as well as fix the long-stalled communication with top government economic officials.

“To achieve that, BI will have to mend its relations with the government, especially with authorities responsible for the distribution of goods and with regional institutions.

“In terms of monetary and financial policies, the most urgent thing to do is finish drafting the bill on financial safety nets,” said Boediono, a Wharton-trained economist who is known for his impeccable integrity and competence.

The bill, he said, would provide the country with detailed procedures on how to make decisions relating to monetary, banking and fiscal matters during financial turmoil.

The commission concluded Boediono’s knowledge and blend of experiences while acting as finance minister during Megawati Soekarnoputri’s administration from 2001-2004, deputy governor at Bank Indonesia from 1996-1998 and state minister for development planning, made him a suitable choice to strengthen cooperation and coordination in an environment of high inflation.

His record, the commission said, would greatly help the integrity and credibility of the central bank, which has been beleaguered by several corruption cases with its outgoing Governor Burhanuddin Abdullah and two other senior executives recently declared corruption suspects.

Presidential spokesman Andi Mallarangeng said the government was content with the House’s acceptance of Boediono.

“We have heard from the House that Pak Boediono was supported by some 45 House members. This is a good sign the President has proposed an appropriate figure for the position,” Andi said.

Regarding Boediono’s replacement, Andi said the President was still undecided.

Boediono was appointed the coordinating minister in December 2005, replacing Aburizal Bakrie who was deemed responsible for plunging the country into a minor economic crisis. (The Jakarta Post)

ISPs in Indonesia are obeying the instructions of Minister of Communication & Information Muhammad Nuh. Not just YouTube, MySpace and Multiply, some of the most accessed websites in Indonesia are also banned.

Minister Nuh’s official letter were not explicitly contained about banning those website. But apparently, the major ISPs are doing beyond the instructions.

Some of the news are here. This is a reaction of Indonesia’s government over the Movie, Fitna, made by Dutch politician’s Geert Wilders.

APJII or Indonesian Internet Service Provider Association eventually blocked Youtube access through Indonesia Internet Exchange. Thus, majority of Indonesians who use this line will be unable to open Youtube. This has been an official command from Indonesia’s Minister of Information & Communication Muhammad Nuh.

However, APJII cannot guarantee that the access over Youtube is fully blocked from entire Indonesia. APJII head Sylvia Sumarlin says,”Because there are also several other lines, ISPs are usually have redundancy”.

This action is a response towards official letter from the Minister of Information and Communication to block Youtube over the distribution of Fitna the movie which can harm the unity and tolerance between believers in Indonesia.

On April 2nd, Indonesia government have asked Youtube to remove several Fitna videos for 2 days. However, there are still no response.

Sumarlin states that APJII will also coordinate with Mastel, Imoca, Awari and others regarding mechanism on blocking some other harmful sites. “We don’t want to be discriminative to Youtube, we will also consider others,” says Sumarlin.

Jakarta (ANTARA News) - President Susilo Bambang Yudhoyono has expressed hope that the people and all concerned parties in the country would remain calm in the face of the current world economic turbulences that were affecting the national economy.

“I have to tell the people and all parties in the country that we and the House of Representatives (DPR) are still able to control the situation. We are also still formulating a credible and sustainable a revised 2008 state budget. We are still able to overcome the economic problems we are facing now,” the president said here on Thursday.

The president made the statement after a meeting with Coordinating Minister for Economic Affairs Boediono, Finance Minister Sri Mulyani, State Enterprises Minister Sofyan Jalil, National Development Planning Minister/National Development Planning Board Chairman Paskah Suzetta, state-owned bank BNI presdient director Gatot Suwondo and Bank Mandiri president director Agus Martowardoyo.

Yudhoyono said the meeting with the ministers was about a government policy to assist the poor and relatively poor members of society who were affected by increases in world oil and food prices.

“The impact in the country of the global food price hikes has led us to think of using funds from the state budget for poverty alleviation programs in an effort to assist the people,” he said.

The president also said the 2008 state budget had remained under control and able to meet its functions in financing general administration activities to stimulate growth and improve the people`s welfare, including the implementation of social safety net programs.

He said t the chief economic minister, the finance minister and the governor of Bank Indonesia (BI) would soon explain this to the people and the market so that they would remain calm in the face of the current global world economic turbulences. (Antara)

Jakartans are among the nation’s most generous people when it comes to helping out those in need, according to the results of a survey announced Wednesday.

In a survey of 11 major cities, residents of Jakarta, Semarang, Surabaya and Makassar ranked first when it comes to giving to family, friends, beggars and people in need, respectively.

The survey, by the Public Interest Research and Advocacy Center (PIRAC), was conducted at the end of 2007, involving a total of 2,500 respondents, said researcher Hamid Abidin.

The survey found, among other things, 43.7 percent of all respondents have a special budget for donations, almost triple the 16 percent in surveys conducted in 2000 and 2004.

Among the total respondents, 99.6 percent said they had given a donation in the past year, a slight decrease from 99.8 percent in 2004 but higher than 98 percent in 2000.

The amount of money respondents said they allocated for donations, however, was up from Rp 663,661 (US$69) per person per year in 2004 to Rp 767,272.

“There has also been a change in people’s motivation to donate, where it is no longer just the conventional religious or cultural obligation. We saw an increase in public donations to economic empowerment programs, legal advocacy as well as for the development of arts and culture,” Hamid said.

“The potential (for donations) grows as more people become aware of what they can do to help others and the environment. But this has not yet been tapped by the government or organizations in need of funding for their social and environmental programs.”

The survey, called The Pattern and Potential of People’s Donations, was supported by the Indonesian Philanthropy Association (PFI) and the Ford Foundation.

A significant increase in donating was seen in Jakarta, Semarang and Pontianak, while respondents in Manado, Balikpapan, Medan and Surabaya were less interested in donating compared to the 2004 survey. Denpasar remained relatively unchanged from one survey to the next.

Eighty-two percent of respondents in Jakarta gave money to relatives in need, an increase from 76 percent in 2004 and 63 percent in 2000; 95 percent gave to street beggars while 66 percent gave to natural disaster victims or to people they had never met who were in need of assistance.

“The donors, however, prefer to meet the recipients directly … either because they don’t trust the aid organizer or the non-profitable organization managing the money for their programs,” Hamid said.

PFI chairman Ismid Hadad said donor education was needed to increase people’s awareness of the importance of donating to strategic, long-term programs.

“Both donors and organizations managing the funds must learn that transparency and accountability in the use of donations will ensure the sustainability of public donations.

“As an incentive, the government could consider giving the donors tax deductions or tax exemptions,” he said.

Currently, only Muslims giving annual alms enjoy a 2.5 percent income tax deduction.

Giving to people in need

1. Makassar 69%
2. Jakarta 66%
3. Bandung 66%
4. Semarang 62%
5. Surabaya 60%
6. Padang 56%
7. Medan 47%
8. Pontianak 44%
9. Manado 40%
10. Balikpapan 36%
11. Denpasar 33%

Source: PIRAC, 2007

The Jakarta post

Indonesia said Tuesday it would block access to YouTube unless the video-sharing Web site removes an anti-Muslim film by a Dutch lawmaker within 48 hours.

Communications and Information Minister Mohammad Nuh said the government sent a letter to the site informing it of its demand on Tuesday.

“The deadline is two days. If (the film) is not removed by that time, we will block YouTube under cooperation with the Internet service providers,” Nuh told reporters in the capital, Jakarta.

Anti-immigration politician Geert Wilders posted the 15-minute film on LiveLeak.com on Friday. It has since been available on other blogs and file-sharing sites, including YouTube.

Last year, Thailand blocked YouTube for four months because of clips it deemed offensive to the king. The ban was lifted after YouTube’s owner, Google Inc., agreed to not allow videos that break Thai laws or offend the Thai people.

In February, YouTube was inaccessible globally for several hours after the government of Pakistan blocked it, citing what it said were clips in which Wilders made denigrating remarks about Islam.

Wilders’ film intersperses scenes of recent terror attacks with versus from the Quran, Islam’s holy book, and speeches from Islamic extremists calling for attacks on non-Muslims. It has been condemned as racist and misleading by governments around the world.

Earlier Tuesday, about 50 people rallied outside the Dutch Embassy in Jakarta calling for Wilders to be put to death.

“Islam is a holy religion,” Shodiq Ramadan told about 50 protesters who shouted in agreement. “Those who have insulted it deserve to be sentenced to death.”

Indonesia is the world’s most populous Muslim nation, but its government is secular and hard-line interpretations of the faith generally do not attract much support.

President Susilo Bambang Yudhoyono, who relies on the support of several Islamic parties in parliament, has condemned the film and urged protesters in Indonesia - a former Dutch colony - to stay calm. (courtesy: The Jakarta Post)