Bank Indonesia trims growth forecast for banking loans next year

Bank Indonesia has slashed its forecast for bank industry loan growth next year to between 19 percent to 22 –percent from the previous 22 to 24 percent, as the global economic slowdown is expected to impact the domestic economy, Halim Alamsyah, BI’s director of banking research and regulation, said.
Source: JakartaGlobe, Tue 9 Dec, section B

Import handling points will still be in five ports

Trade Minister Mari Pangestu insisted that the government will maintain certain five ports as import handling points, starting from 15 December 2008. She said that in response to the protest by the people in Dumai, Riau Province, whose port is not included in the list. Those five ports are Belawan, Tanjung Priok, Tanjung Emas, Tanjung Perak and Makassar.
Source: PA Asia - Public Affairs and CSR from Media Indonesia, 11 December, p.13

World Bank cites drop in exports and investments: 2009 growth may fall to 4.4%

In a report released on Wednesday, the World Bank said Indonesia’s economic growth rate could slow to 4.4 percent next year from 6 percent in 2008, assumed a prolonged global economic recession affecting both investment and exports. The bank further forecast that Indonesia’s investment growth could be flat in 2009, before recovering to around 7 percent in 2010. Growth in export volume is estimated to slow from 14 percent this year to between 1 percent and 2 percent in 2009, before strengthening to 8 percent in 2010.
Source: JakartaGlobe, Thu 11 Dec, section B.

Government lowers growth forecast

The government has slashed its 2009 growth forecast to between 4.5% and 5%, Finance Minister Sri Mulyani Indrawati said on Tuesday, Agence France-Presse reported.
Indrawati told an investor conference the economy would likely grow well below the budget target of 6.1% next year. The minister said year-on-year growth could come in below 6% during the fourth quarter of this year from 6.11% in the third. For the entire year, the economy could expand by 6.2%.
The government will provide tax relief worth an estimated Rp12.5 trillion next year to help businesses, she said. The minister also forecast the rupiah, which has recently sunk to 10-year lows of around Rp.12,500 to the dollar, would average Rp9,675 against the greenback this year.
"Interest rates, given expectations of falling inflation, may be adjusted," Indrawati told reporters.
Annual inflation was 11.77% in October, easing from 12.14% in September due to softer energy and commodity prices globally.
Source: www.ekon.go.id

Bank Indonesia trims key rate to stimulate growth

Defying analysts’ predictions, Bank Indonesian on Thursday (Thu, 4 Dec) cut its benchmark interest rate by 25 basis points to 9.25 percent-the first reduction this year-in an attempt to stimulate the economy and blunt the impact of the global economic slowdown, the central bank said in a statement.
Source: JakartaGlobe, Fri 5 Dec, pg. A1.

Trade Minister foresees tough times for exporters

Trade Minister Mari Pangestu said that exports were set to fall next year due to weak global economic growth, but predicted that a recovery could occur in the second half of the year.
“The first half of 2009 will be the most difficult period,” she said, adding that she was unable to estimate as yet how big the drop would be. She said exports would decline as demand for Indonesian’s commodities and manufactured goods fell in the country main’s main trading partners, particularly in the US.
Source: JakartaGlobe, Fri 5 Dec, section B.

Income tax facilities

The Chairman of Investment Coordinating Board (“BKPM”) issued the guidelines and procedures for submitting an application of income tax facilities for the Investment Company in the certain sectors and/or regions (BKPM Regulation No.2/P/2008 of 2008)(October 14, 2008). The said regulation sets out the guidelines for the Company to obtain the income tax facilities. The Company shall submit the application of income tax facilities to Ministry of Finance through the Chairman of BKPM. Then, BKPM issues the recommendation letter if the applicant has fulfilled all the requirements. Based on the recommendation letter of BKPM, the Ministry of Finance will issue grant the income tax facilities to the respective applicant.