KLM Royal Dutch Airlines is ready to resume it's interline agreement with Garuda Indonesia, after the Indonesian flag carrier was allowed back into European airspace. The Air France KLM country manager for Indonesia, Axel Colen, said the interline agreement with Garuda had been in place long before the latter was banned from European airspace. He added that both airlines were working to enable their ticketing system "to talk to each other in issuing the e-tickets". An interline agreement allows two airlines to have two different flights on one ticket, thus reducing the hassle for travelers. When asked when would KLM would ink a code-share agreement with Garuda, Colen said it would be the second stage after the interline agreement.
Source: The Jakarta Post, 2 Oct 2009, p.14
Tuesday, 13 October 2009
Indonesia channels investment to agriculture sector
The world's investment focus starts to shift towards the agriculture sector and three regions in Indonesia are considered to be the most potential to support global food resilience. The three areas are Merauke-Papua, Sulawesi and Kalimantan. The message was conveyed by Deputy to the Coordinating Economic Minister for Agriculture and Marine Affairs Bayu Krishnamurti as the result of the Routable for Promoting Responsible Investment in Agriculture held Friday.
Source: Bisnis Indonesia, 3 October, p.2
Source: Bisnis Indonesia, 3 October, p.2
Bapepam imposes rules on investor data, origin of funds
The stock market regulator is to introduce a stricter regulation on transparency and accountability that will require financial services institutions in the capital market to verify data regarding their clients. The regulation will oblige securities firms, mutual fund managers and custodian banks to collect and verify all information about their investors before confirming them as clients and allowing them to open accounts. Bapepam will also be able to impose sanctions on those who fail to comply.
Source: PA Asia: The Jakarta Post, 5 October, p.13
Source: PA Asia: The Jakarta Post, 5 October, p.13
Indonesia says inflation remains under control
Bank Indonesia Monday left its policy rate unchanged at 6.5% as the central bank deemed that inflationary pressures remain under control. Markets reacted calmly to the widely expected decision, and inflation projections released by the central bank led one economist to predict that any monetary tightening would be measured. The Central Bank said that the country's economy will likely grow between 4-4.5% this year, slowing from 6.1% in 2008, but forecast economic expansion to accelerate to between 5% and 5.5% next year.
Source: Wall Street Journal, p.11, 6 Oct 2009
Source: Wall Street Journal, p.11, 6 Oct 2009
KADIN proposed three industrial sectors to be prioritized
The Indonesian Chamber of Commerce and Industry (KADIN) proposed to the new government to focus on three industrial sectors in the next five years. Vice Chairman of KADIN elaborated that the three sectors are telecommunication and information, basic metal and machineries and petrochemical. The proposal was conveyed during KADIN's discussion entitled "National Industries' Vision for 2030 and Roadmap for 2015".
Source: PA Asia: Media Indonesia, p.A18, 7 Oct 2009
Source: PA Asia: Media Indonesia, p.A18, 7 Oct 2009
European Recovery Optimism Takes Hit
Brussels. Europe hit a recovery setback on Wednesday with the euro-sone economy shringking more than expected, giving substance to widespread warning that talk of a rapid global turnaround might be premature. But the surprise revised results showed that some nations had emerged from recession. The Increasingly upbeat mood accompanying results since the summer was punctured by EU data showing that the economy of the 16-nation euro zone shrank in the second quarter by a greater margin than initially thought.
Source: The Jakarta Globe, p.B3, 8 Oct 2009
Source: The Jakarta Globe, p.B3, 8 Oct 2009
Wednesday, 16 September 2009
The Depok-Antasari Section of Toll Road not Worthy of Continuation
The negotiation between the Board of Toll Road Management (BPJT) and PT Citra Wasphuttowa on the development of Depok-Antasari Section of toll road was till at deadlock, as agreement was still not arrived at between the two parties especially on the magnitude of expansion of land-clearing compensation for the project which burdened both parties.
Nurdin Manurung, Head of the Board of Toll Road Management (BJPT) in his disclosure to Business News in Jakarta Tuesday [8/9] said that the continuity of road building of the Depok-Antasari section of toll road depended on the Toll Road Enterprise [BUJT] in this case PT Citra Wasputhowa as investors, whether they were wiling to pay for the costly land clearing expenses in that section zone or preferred to resign from the contract with the Board of toll Road Management [BJPT]. “The final decision is not in BJPT anymore, whether they wish to quit or not. Tell then to call me on the phone directly” Nurdin remarked.
As known, the price of land along the Depok-Antasari had skyrocketed, resulting in the tremendous expansion of the cost of project. Evaluation by BPJT on that section of road concluded that the Depok-Antasari Section was financially not feasible and therefore no longer worthy of continuation. This was due to the fact that cost of land clearing which was formerly estimated at Rp. 700 billion had swollen up to become Rp. 2.1 trillion. While the Government’s capacity to cover up was only Rp. 1.8 trillion, so that investors should increase their investment up to Rp. 300 billions.
The additional investment worth Rp. 300 billion was felt as a heavy burden to investors. Nevertheless they still persist to run the project, hoping that the complementary expenses for land clearing be borne by the Government – and yet the contract between PT Citra Wasphuttowa and BPJT toll road management, as written in the letter of Agreement (PPJT) signed on May 2006 was way overdue.
In fact cases like the Depok-Antasari project could have been avoided if the component of land clearing expenses be excluded from the PPJT. This was the point to be proposed by BPJT Management to the Minister of Finance. BBJT believed that if land clearing expanses would be borne by the Government so that investors were only responsible for building and operating the toll road, there would be certainty in investment climate at the project.
The case of the Depok-Antasari toll road was such that, if the revision of the agreement with PPJT were agreed upon, it would be necessary to repeat the tender of the entire project so the rights were no longer in the hands of PT Citra Wasphuttowa, if another participant came up with better terms.
Nurdin Manurung, Head of the Board of Toll Road Management (BJPT) in his disclosure to Business News in Jakarta Tuesday [8/9] said that the continuity of road building of the Depok-Antasari section of toll road depended on the Toll Road Enterprise [BUJT] in this case PT Citra Wasputhowa as investors, whether they were wiling to pay for the costly land clearing expenses in that section zone or preferred to resign from the contract with the Board of toll Road Management [BJPT]. “The final decision is not in BJPT anymore, whether they wish to quit or not. Tell then to call me on the phone directly” Nurdin remarked.
As known, the price of land along the Depok-Antasari had skyrocketed, resulting in the tremendous expansion of the cost of project. Evaluation by BPJT on that section of road concluded that the Depok-Antasari Section was financially not feasible and therefore no longer worthy of continuation. This was due to the fact that cost of land clearing which was formerly estimated at Rp. 700 billion had swollen up to become Rp. 2.1 trillion. While the Government’s capacity to cover up was only Rp. 1.8 trillion, so that investors should increase their investment up to Rp. 300 billions.
The additional investment worth Rp. 300 billion was felt as a heavy burden to investors. Nevertheless they still persist to run the project, hoping that the complementary expenses for land clearing be borne by the Government – and yet the contract between PT Citra Wasphuttowa and BPJT toll road management, as written in the letter of Agreement (PPJT) signed on May 2006 was way overdue.
In fact cases like the Depok-Antasari project could have been avoided if the component of land clearing expenses be excluded from the PPJT. This was the point to be proposed by BPJT Management to the Minister of Finance. BBJT believed that if land clearing expanses would be borne by the Government so that investors were only responsible for building and operating the toll road, there would be certainty in investment climate at the project.
The case of the Depok-Antasari toll road was such that, if the revision of the agreement with PPJT were agreed upon, it would be necessary to repeat the tender of the entire project so the rights were no longer in the hands of PT Citra Wasphuttowa, if another participant came up with better terms.
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