STRENGTHENING ITS FINANCIAFUNDAMENTALS BNI’S NET PROFIT SOARS BY 41%

BNI recorded performance growth. Up to end of June 2011, BNI’s net profit increases by 41% from Rp.1.93 trillions to Rp.2.73 trillions. Meanwhile, total loan distributed grows by 21% from Rp.126.23 trillions to Rp.152.90 trillions. Increase in cheap fund current account and savings account (CASA) grows by 10%. Gross non-performing loan (NPL) declines from 4.3 % to 4.0 %, and net NPL declines from 0.9 % to 0.7 %, and Loan to Deposit Ratio (LDR) grows form 68.2 % to 76.1 %. The performance growth is supported by coverage ratio which is stable at level 120.5 %

BNI’s President Director, Gatot M. Suwondo, admitted that performance growth happened after in the last three years, his party performed strengthening of financial fundamentals which is mainly focused on loan quality. In 2011, BNI is focusing on six strategic policies, namely sharpening of business segmentation in banking and consumer/retail businesses, continuing increase of asset quality, aggressive growth of cheap fund and diversification of fee-based income, increasing of operational efficiency, increasing of quality of customer experience, and strengthening of BNI Incorporated.

Loan distribution in corporate segment, small business segment, and consumer segment experiences a very satisfactory growth. If compared to same period of last year, loan in corporate segment grows by 25 % from Rp.45.25 trillions to Rp.56.84 trillions. Loan for small businesses (KUK) grows by 17.3 % from Rp.26.98 trillions to Rp.31.65 trillions. Consumer loan grows by 34 % from Rp.20.40 trillions to Rp.27.33 trillions, and international business financing grows by 27 % from Rp.4.79 trillions to Rp.6.08 trillions.

The focuses of loan distribution in each segment are, amongst other, the focus of corporate segment is infrastructure, small business segment is supporting commerce in the regions, and the focus of the consumer segment is on housing loan.

FAO AND WORLD BANK PREDICT FOOD CRISIS IN 2025

Food and Agricultural Organization (FAO) and the World Bank predicted there would be world food crisis in 2025. Therefore as anticipative measure the Indonesian Chamber of Commerce (KADIN) as stated by Vice Chairman of KADIN for Agri-business, Food and Animal Fram Franky Widjaya, in the Coordinative Meeting for Food Affairs, KADIN Indonesia on Tuesday (26/7) hand in hand with The Government planned to constantly enhance domestic food production at home in Indonesia.

Among the measures would be implementation of Food Estate which was already begun through Merauke Agriculture Food and Energy Estate. The Government Regulation had it that the Food Estate made it possible for foreign investors to participate based on ownership of 51% Indonesia and 49% foreign. Investment opportunity to the amount of Rp 85.40 trillion would be used for implementation of National Food Coordinative meeting and Feed Indonesia and Feed the World II so there would be partnership of mutual benefit among 14 multi-national companies and national businessmen and farmers toward sustainable self sufficiency plan.

Global warming which causes anomalous climate would remain to be the highlight of the agricultural industry today. To anticipate increasing need for food for the world’s population which increased from 6 billion in 2009 to around 9 billion in 2050, according to FAO, world’s production output of food must increase by 70% of the present output while space for plantation never increased hence a strategy would be needed to anticipate food shortage.

The currently extreme anomalous weather in all parts of the world was showing its impact on agriculture, i.e. the significant drop of food reserves, especially cereals. Setback in agriculture was due to slump of several agricultural commodity especially food, made worse by many countries producing fuel out of cereals like corn, wheat etc. which boosted up prices of food.

As result of high price of food, the number of people suffering from malnutrition in the world increases, the number of poor people increases, 80% of which are in developing nations. In 2009 the number of poor people in the world reached 1 billion or 1/6 of the world’s population. In Indonesia, the Government together with the people and businesspeople jointly strive to increase production of food at home in spite of many obstacles like pest and plant disease attack (brown insect, mice), high tide and earthquakes which keep fishermen from fishing, increasing prices of aninmal feed due to under-supply of cereals, which slowed down population growth of livestock and reduced prosudtion output of meat hindranced output of dairy products, and decreased output of eggs and chicken way below expectation.

Commodity Rice Corn Soy Sugarcane White sugar Rafinated sugar CPO Tea Coffee Cacao Fishery Hooked fish Reared fish

Target 2010 34,9 juta ton 16,5 million ton 1,0 million ton 37,9 million ton 3,3 million ton 1,5 million ton 23,6 million ton 154,5 thousand tons 754,1 thousand tons 855,0 thousand tons 9,7 million tons 5,8 million tons 3,5 million tons

Attainments 2010 36,3 million tons 17,8 million tons 0,9 million tons n.a 2,7 million tons 2,4 million tons 19,8 million tons 150,0 ribu ton 680,0 thousand tons n.a n.a n.a n.a

TO DEVELOP ECONOMIC POTENTIAL OF BOUNDARY COMMUNITIES

The Working Committee for Boundary Zone Administration of Commission II of House made a specific visit to the borderline zone between the Province of Timor Leste (RDTL). The  working Committee of House saw potentials that might stimulate economic growth of the borderline zones particularly in trading because the procurement of nine essebtial needs (food) for Timor Leste were were for the most part sent over from Indonesia. The trading potential must be developed to promote social welfare of the communities in both countries. This was disclosed by Ganjar Pranowo, Vice Chairman of Commision II of House upon leading visit of the Committee of Boundary Administration of house to the Indonesia – Timor Leste borderline zone.

The Working Committee of House was expecting that the market at the borderline of motaain of the Regency of Belu NTT and Timor Leste could be functioned to the maximum. Today there are only two kiosk being active at the borderline market. This borderline market is only used by the local communities, although the place was meant to be a meeting point of the Indonesians and people of  of Timor Leste. In reality, the boundary market is not functioning, because Timor Leste could import food directly from Surabaya or other cities without using NTT.

Development of boundary areas could not be simultaneously carried out at all boundary points, because administration at boundary towns have no standard management platform. To build boundary zones, House was proposing to set up a pilot project, which may serve as a model for building other similar towns on the borderlines.

Furthermore development of borderline towns should not be monitored by one single commission, because to make advance ments in the boederline cities is a multi-sector process. Moreover if management of borderline cities were to be part o national political strategy, a comprehensive parliamentary team would be needed to control development in borderline zones.

INDIA OFFER INDONESIA COLLABORATION IN ENERGY INVESTMENT

Indonesia had become one of the highly estimated country by India In terms of collaboration in the energy sector, especially I the development of infrastructure for national economic growth. According to one of the executives of the Indian Electrical and Electronics Manufacturers Association/IEMA Subil More during his visit to Jakarta on Wednesday (20/7) the Indian company was now aggressively looking for partners, investors and suppliers from Indonesia to collaborate with company of the same business lines. India sets target to attain USD 300 bilion of investment in 2017 for initial planning of the energy sector in India.

“We excpect more strategic collaboration with Indonesian companies, which would eventually lessen hindrances on the both parties, and on the contrary broaden access to markets of both countries, especially companies into the energy sector in India was expected to secure safety and yield profit in the long run because admittedly the distance between the two countries could be overcome by balance of supply and demand secure safety and yield profit in the long run because admittedly the distance between the two countries could be overcome by balance of supply and demand” More was quoted as saying.

Indonesian property and infra structure companies operating in India were highly regarded because of their competence in key turning projects and infra structures which were complex. Therefore Indonesian companies operating in the energy sector could use the business tyrack already existing in India as path to enter the energy sector in Indonesia, he explained. “Therefore we are offering companies specializing in the cable industry to participate in Elecrama 2012, a premium Exhibition of electricity industry. As planned the expo which is to be staged in Mumbai on January 18-22 in India would display products and technology through the entire voltage spectrum, from 110 volt – 1,200 k adjusted to the local and global standard.”

This event would be forum for the world market to seek and angage collaborations, especially in industry planning as well as the government sector in India. Now India even has the ambition to command over the electricity sector worldwide and dare to make commitments to make India as the world’s greatest provider of electricity. “This is thanks to the support of numerous expert staff from outside India and ther related companies entering India. Now opportunities are wide open in the energy sector in India” More remarked.

OPERATION OF SEMARANG – UNGGARAN TOLL ROAD SECTION AWAITING FOR FEASIBILITY CHECK UP

Head of the Board of toll Road Management (BPJT) Ahmad Ghani Gozali stated that the had not known for certain the adequacy of the Semarang Unggaran toll road section to be used during the “Home for Lebaran” rush 2011 because that section was part of the Semarang – Solo section which was still waiting for readiness check up in terms of technical, administrative and security. “If all requirements were fulfilled, the toll road would be open for public, if not then we dare not to open it” Ghani told Business News in Jakarta on Friday (22/7).

To check feasibility of the road the estimated time needed would be not more than one month. From the quality check up process the inferiorities of the road would be detected such as degree of flatness etc, which would take time to accomplish. The Board of Toll Road Management, Semarang – Solo Section, in this case PT Jasa Marga (Persero) Tbk asked for BPJT permission to be given time to accomplish the task.

Ghani’s statement was in reponse to public insistence, especially the citizens of Semarang that the Semarang – Unggaran section be used to accommodate home for Lebaran traffic rush 2011. Vice Chairman of Commision D of Central Java Regional Parliament Sasmito believed that functioning of Semarang Unggaran toll road section through Lebaran festive days was important as it could reduce traffic jam along the Semarang Unggaran section where some of the lanes were not wide enough. For example, in the Regency of Semarang some of the lanes were not ideal “The Semarang – Unggaran section had no motorcycles lane. Such a condition has the potential to stagnate traffic during Idul Fitri holidays if the Semarang Unggaran section were not operational” Sasmito remarked.

So far road building of section I Semarang – Unggaran was still underway the technical construction was at the stage of toll road building at Jalan letjen Suprapto I Unggaran, Regency of Semarang.

Repair of the road section of around 500 meters long which sank due to land motion at km 5.5 was up till now still not completed. Due to the long dragging process of road repair of the Semarang – Unggaran section, the feasibility test process of this toll road remained unclear.

Commisioner of PT Trans Mega Central Java, Danang Atmodjo was in no condition to clarify when the process of road repair be completed. According to Danang, the changing weather often stagnated the process of repair as heavy equipment machines could not function to the maximum, however he would do his best to complete repair on time. “I dare not promise when the process would be completed considering the irregular weather. One thing is sure up till now the overall process had been 90% accomplished” he remarked.