Thursday, 29 January 2009

Consumer products to grow more than 10%

PT Unilever Indonesia Tbk predict the growth of their sales this year to be more than 10% because they believe the consumers will not reduce their spending on consumer products. Unilever’s Corporate Secretary Franky Jamin said the company will continue their expansion efforts, such as launching new products. Moreover, Unilever will also try to acquire several famous brands. Previously, the company has acquired Go-go and Buavita drinks from PT Ultrajaya Milk Industries Tbk.
Source: PA Asia - Public Affairs and CSR from Koran Jakarta, p.11, 22 January 2009

Presidential election to be held of 8 July and 8 September 2009

The General Elections Commission (KPU) agreed yesterday that the polls for presidential and vice presidential election will be held on 8 July 2009. If another round is needed, it will be held on 8 September 2009. Based on that schedule, the final election result after the approval by the Constitutional Court could be decided on 8 October 2009 and the elected president and vice president could be inaugurated on 20 October 2009.
Source: PA Asia - Public Affairs and CSR from Kompas, p.1, 23 January 2009

Import limitation will boost food sales

The sales figure of food and beverages products will increase after the government applies its import limitation policy staring from 1 February 2009. Chairman of Indonesian Food and Beverages Producers (Gapmmi) Thomas Darmawan said domestic producers have the chance to takeover the market share of imported products, which currently valued at US$ 28 billion. He said industries such as milk, flour, coffee, cereal and beverages could grow approximately 10 percent.
Source: PA Asia - Public Affairs and CSR from Koran Tempo, p.A18, 23 January 2009

Government dangles 63% price hike to lure fast-track energy producers

The price paid to independent power producers for electricity is to be increased by up to 63% percent to encourage more investment in the sector, Jacobus Purwono, a senior official at the Energy and Mineral Resources Ministry, said on Tuesday (28/01/2009).
The government wants to see an additional 30,056 megawatts of generating capacity coming on stream by the end of the year, including 10,000 MW under the first stage of state electricity utility PT Perusahaan Gas Negara, or PKN’s, fast-track capacity expansion program.
Source: JakartaGlobe, p. B2, 28 January 2009

Thursday, 15 January 2009

Private sector’s role in Priok port to be changed

The management of state port operator in Tanjung Priok port, PT Pelindo II indicated that it would still involve the private sector in port service activities but the partnership scheme would be changed. General Manager Pelindo II Tanjung Priok, Cipto Pramono said the private sector would be involved in the use of space in the container yard. Meanwhile, Pelindo will manage anything related with management status and facility/area operations. In the previous scheme, companies could rent and operate the container yard on their own.
Source: PA Asia - Public Affairs and CSR from Bisnis Indonesia, 5 January, p.M6

Pelindo II to develop Teluk Bayur

State port operator PT Pelindo II will develop a container terminal in Teluk Bayur port, West Sumatra, starting from February 2009 to be completed in August 2010. The expected container traffic in the port is 60,000 TEUs per year, or a 20% increase to the current volume of 50,000 TEUs. Pelindo II is also planning to expedite the development of the Banten Bay oil refinery in Bojonegara International Port, in cooperation with state oil company PT Pertamina.
Source: PA Asia - Public Affairs and CSR from Bisnis Indonesia, 6 January, p.m3

Presidential election is scheduled on 28 July 2009

The General Elections Commission (KPU) has scheduled the first round of the presidential election to be held on 28 July 2009. The second round, meanwhile, is scheduled to be held on 9 September 2009. If everything goes according to the plan, the elected president and vice president will be inaugurated on 20 October 2009. However, KPU said this schedule is still tentative.
Source: PA Asia - Public Affairs and CSR from Tempointeraktif website, 8 January, 19:57

Bank Indonesia cuts rate to 8.75%

Bank Indonesia surprised the market Wednesday by cutting its benchmark rate by half a percentage point to 8.75%, and signaled easier policy settings in the months ahead. Analysts and markers cheered the lowering of the benchmark on expectations that lower interest rates would cap bad loans at a time when the economy is slowing. The central bank also said it expected the economy to grow between 4% and 5% this year, compared with forecast growth of 6% for 2008. Source: PA Asia - Public Affairs and CSR from The Wall Street Journal, 8 January

Economy grows 6.2% in 2008

Indonesia's economy expanded 6.2% in 2008, the finance ministry said on Thursday, slowing slightly from 6.3% in 2007 when the country enjoyed its fastest growth in a decade, Reuters reported. However, the government has warned that 2009 would be tougher, with growth seen at between 4.5% and 5%. Inflation in 2008 was 11.1%, in line with government forecasts and tax revenue amounted to Rp658.7 trillion ($60.71 billion), Rp49.4 trillion above the government's target.
"Generally the actual macroeconomic indicators were good although in the past few months there has been some significant pressure from the global financial crisis," the ministry said in its statement.
The budget deficit was 0.1% of Gross Domestic Product (GDP), the finance ministry said in a statement, The Jakarta Globe reported. The figure was far below the amended budget figure of 2.1%.
The finance ministry said on Thursday the previous deficit projection was due to higher-than-expected state revenue plus grants from foreign donors, and below-target spending. In monetary terms, the 2008 deficit was Rp4.2 trillion, far less than the revised estimate of Rp94.5 trillion. Revenue plus grants were recorded at Rp981 trillion ($90.25 billion), 9.6% higher than expected, while overall state spending was 91.5% of budgeted amounts.


Tuesday, 6 January 2009

Importation of Certain Products

The Ministry of Trade has postponed its Trade Regulation No.44/M-DAG/PER/12/2008 concerning the Provisions on Certain Product Import to February 2009. The regulations states that a company that imports products like electronic, ready-to wear clothes, kid toys, footwear and food and beverage products must obtain an appointment as a Registered Importer of Certain Product from the Ministry. Such an appointment is valid for one (1) year and can be extended. Furthermore, each of these products has to be checked by a Surveyor in the loading port before shipment.

BI Issues New Rule on Exports Facility

Bank Indonesia (BI) has introduced a new rule, which came into effect on December 5, enabling exporters to receive payment faster, in an attempt to reduce the impact of the global credit crunch, Reuters reported.
”Exporters can have liquidity both in foreign exchange and in rupiah, thus reducing pressure on the rupiah exchange rate," BI Governor Boediono said in a statement, adding that this should be positive for the economy.
The new regulation is eligible for six foreign currencies, the US dollar, yen, pound sterling, euro, Australian dollar and Swiss franc.
Under the new rule, commercial banks are allowed to sell export receivables, the monies owed to an exporter by the importer, to the central bank, which will in turn extend the proceeds to the original exporter.
"Exporters, through the banks, will receive exports proceeds faster to meet working capital needs rather than having to wait for the payment date from overseas buyers," BI said on its website.
This should reduce the time it takes for an exporter to receive payment, which typically can be as long as six months, and may help to reduce demand for foreign currencies, reducing the selling pressure on the rupiah currency.
Several companies have already complained about the difficulty of obtaining financing, while monthly exports have dropped significantly because of the crisis.
A BI official said a similar regulation was put into effect during the 1997-1998 Asian financial crisis.

Jakarta Sets Mining Law

Indonesia’s controversial new mining law, which gives greater power to local governments and forces mine operators to process raw materials locally, is likely to deter foreign investment at a time of falling global commodity prices, miners and industry analysts said. The law is passed by Indonesia’s parliament on Tuesday. Under the new system, which comes into effect within three months, local authorities will give companies five-year exploration licenses that can later be turned into full mining development agreement.
Source: PA Asia - Public Affairs and CSR from The Wall Street Journal, December 17, p.3

Lampung builds special school to support bioenergy program

The Lampung provincial administration is building an integrated biofuel school in Central Lampung regency as part of its plan to become a national bioenergy center. Construction of the special school in Sulusuban village, Central Lampung, is expected to cost US$ 19.6 million and funded by the central government (50%), province (30%) and regency (20%). Construction work commenced in the middle of the year and is scheduled for completion in 2017.
Source: PA Asia - Public Affairs and CSR from The Jakarta Post,23 December, p.8

US$ 208 billion is needed for electricity projects

The government needs an investment of US$ 208.7 billion to fund electricity projects during the period of 2008-2017. The investment value was based on the National Electricity General Planning (RUKN) for 2008-2017 that was passed in November. From total amount of investment needed, the largest investment will be for the development of power plants, particularly in Java-Madura-Bali, which is estimated to cost around US$ 140.75 billion.
Source: PA Asia - Public Affairs and CSR from Bisnis Indonesia, 23 December, p.T4

Cigading Port to develop warehousing facility

Administrators of Cigading Port, Banten will build warehousing facility to accommodate imported raw materials from industries. The facility is prepared to replace warehouses in Tanjung Priok Port that will be demolished. The development of the facility is also to anticipate Tanjung Priok Port’s plan of development that will be more focused on container service starting the first semester of 2009.
Source: PA Asia - Public Affairs and CSR from Bisnis Indonesia, 24 December, p T6

Import arrangement to be introduced in January

Trade Minister Mari Elka Pangestu on Monday revised a policy on entry limitation of five categories of imported goods at certain ports and airports to be introduced on January 1, The Jakarta Post reported. She had earlier rescheduled the introduction of the new policy to February 15 but said she was aware of pressure from local manufacturers for faster implementation.
Under the policy, five categories of goods including garments, footwear, toys, electronics, food and beverages can only enter the country through five designated ports and certain international airports.
For now, only garments will enter the country using pre-shipment inspection (PSI) procedures as of January 1 while the four other categories of goods will use these inspection procedures as of February 1.
The ports that will serve as entry points are Belawan in North Sumatra, Tanjung Priok in Jakarta, Tanjung Emas in Central Java, Tanjung Perak in East Java and Makassar in South Sulawesi .
The policy is aimed at strengthening supervision of the customs office against the possible smuggling of these products.Industry Minister Fahmi Idris said his ministry was drafting a proposal requesting the Trade Ministry to expand the categories of imported goods that could enter the country only through the designated ports. It proposed that the import restrictions be extended to cosmetics, ceramics, steel, energy-saving lamps, cell phones, auto parts (spark plugs and filters) and bicycles, Idris said.