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Indonesia Exposure to Global Risk is Limited: IMF

Cempaka — Thu, 21 Jul 2011 10:46:00 +0000

Jakarta Globe, July 21, 2011

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Indonesiafaces limited exposure to a large exit of foreign capital at a time of globalrisk aversion due to strong fundamentals and relatively low dependence onexternal demand, the IMF said on Thursday.

TheInternational Monetary Fund cited the country’s strong export growth, includingin manufacturing, and said the continued flexibility of the rupiah’s exchangerate would help protect against volatile cash inflows.

Thecomments come as Indonesia’s central bank tries to cap huge inflows of foreigncash from investors seeking higher interest rates than in the West, which itfears could trigger economic instability.

“IndonesianGDP growth is projected to remain robust at around 6.5 percent in 2011–12,”the IMF said in a statement following a consultation with Indonesian officialsand central bankers.

“Increasesin both foreign and domestic investment are supporting growth, whileaccelerating credit growth and expected reductions in energy subsidies shouldpush core inflation modestly higher this year and into 2012,” it said.

The fundalso urged Indonesia to reduce fuel subsidies so that it could boost spendingon infrastructure and social welfare.

IMF,however, said there was a risk of higher inflation if the government cut energysubsidies, and that the central bank would need to “act decisively” if thegovernment took that course.

Agence France-Presse

Foreign Direct Investment in Indonesia Up 21% in Q2

Cempaka — Thu, 21 Jul 2011 07:47:00 +0000

Jakarta Globe, July 21, 2011

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Foreigndirect investment in Indonesia rose 21 percent in the second quarter of 2011from a year ago, as strong commodity prices attracted investors into the miningsector, the government said on Thursday.

FDI fromApril to June was Rp 43.1 trillion ($5 billion), which followed $4.6 billion offoreign investment in the first quarter, the country’s investment board (BKPM)said.

This tookFDI in the first six months to just short of a half of its full year target fora record Rp 156 trillion this year. Last year foreign investment into Indonesiareached a record Rp 148 trillion.

SoutheastAsia’s largest economy has been a hot destination for foreign investors in thepast two years due to its resilient economic growth, abundant resources,emerging middle class and political stability.

Reuters

Kadin Says Renewables the Key to Heading Off Energy Crisis

Cempaka — Fri, 15 Jul 2011 21:53:00 +0000

Jakarta Globe, FaisalMaliki Baskoro, July 15, 2011

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TheIndonesian Chamber of Commerce and Industry has called on the government toshow its commitment to developing renewable energy resources throughregulations and pricing as the nation tries to reduce its reliance on fossilfuels.

Thegovernment had yet to issue any regulations to set the price of renewableenergy, which has hampered business plans for developing the resource, saidHarry Salman F. Sohar, the deputy for new and renewable energy at the chamber,also known as Kadin.

“Renewableenergy is still seen as an alternative, not a solution,” he said. “Developingrenewables is necessary, and the government needs to be more serious aboutthis.”

Theimportance of moving away from fossil fuels and natural gas for electricity generationhas been acknowledged in legislation that prioritizes shifting energy use tonew and renewable resources, including coalbed methane, nuclear, gasified coal,geothermal, solar and wind.

“There’sstill a lack of regulation that is pro-renewables, especially on the pricingmechanism,” Harry said. “Kadin will form a working committee that will provideinput to the government.”

Kadin, hesaid, will propose a feed-in tariff payment plan, which would pay those whooperate renewable electricity systems for every kilowatt hour generated basedon the cost of production by technology. That means homeowners who have solarpanels installed on their roofs would be paid for the surplus electricity thatis generated and transmitted to the power grid.

The FITscheme is already widely used in Europe, Asia and Africa.

Accordingto government data, Indonesia has up to 40 percent of the world’s geothermalreserves, with the potential to produce the equivalent of 28,000 megawatts.

Harry saidcountries had already committed to helping develop Indonesia’s renewable energypotential, including $364 million coming from the United States. Finland hasalso set aside $40 million to develop renewables in South Kalimantan and Riau,he added.

Accordingto Shinta Widjaja Kamdani, Kadin’s deputy for the environment and climatechange, the government needs to act on developing renewables because fossilfuel reserves could run out as soon as in the next 15 years, leaving thecountry with an energy crisis. “A major breakthrough needs to happen soon,” shesaid.

Indonesia’soil reserves are estimated at 4.7 billion barrels, the equivalent of 15 years’worth with average domestic consumption of 1,126 million barrels per day, shesaid, citing data from the BP Statistical Review of World Energy.

At the sametime, the use of renewable energy by way of solar, wind and biodiesel hasincreased significantly over the past four years, she said, citing theInternational Energy Agency.

RI posts record historical exports value in May

Cempaka — Fri, 01 Jul 2011 09:09:00 +0000

The Jakarta Post, Jakarta | Fri, 07/01/2011

Indonesia recorded a “historical” combined export value in May, totaling US$18.33 billion, an increase of 45.29 percent compared with May last year, the Central Statistics Agency (BPS) reported Friday.

“This is a new record for exports, compared with the December 2010 figure, which stood at US$16.83 billion,” BPS head Rusman Heriawan told a press conference at his office in Jakarta.

Cumulatively, Indonesia’s exports values in the January-May period reached $80.28 billion, an increase of 33.37 percent from the same period in 2010.

Rusman said the increase was attributable to the increases in both oil and gas and non-oil and gas exports.

“[In May 2011] non-oil and gas exports reached US$14.22 billion and oil and gas exports US$4.11 billion,” he said, as quoted by tempointeraktif.com.

Rusman added that coal and vegetable oil contributed the most to the increase in the non-oil and gas exports.

He also said that China was the top destination for non-oil and gas exports, followed by Japan and the US.

“The total value of exports to China was US$1.81 billion, to Japan $1.53 billion and the US $1.32 billion,” Rusman said.

RI posts record historical exports value in May

Cempaka — Fri, 01 Jul 2011 09:09:00 +0000

The Jakarta Post, Jakarta | Fri, 07/01/2011

“This is a new record for exports, compared with the December 2010 figure, which stood at US$16.83 billion,” BPS head Rusman Heriawan told a press conference at his office in Jakarta.

Cumulatively, Indonesia’s exports values in the January-May period reached $80.28 billion, an increase of 33.37 percent from the same period in 2010.

Rusman said the increase was attributable to the increases in both oil and gas and non-oil and gas exports.

“[In May 2011] non-oil and gas exports reached US$14.22 billion and oil and gas exports US$4.11 billion,” he said, as quoted by tempointeraktif.com.

Rusman added that coal and vegetable oil contributed the most to the increase in the non-oil and gas exports.

He also said that China was the top destination for non-oil and gas exports, followed by Japan and the US.

“The total value of exports to China was US$1.81 billion, to Japan $1.53 billion and the US $1.32 billion,” Rusman said.

RI posts record historical exports value in May

Cempaka — Fri, 01 Jul 2011 09:09:00 +0000

The Jakarta Post, Jakarta | Fri, 07/01/2011

“This is a new record for exports, compared with the December 2010 figure, which stood at US$16.83 billion,” BPS head Rusman Heriawan told a press conference at his office in Jakarta.

Cumulatively, Indonesia’s exports values in the January-May period reached $80.28 billion, an increase of 33.37 percent from the same period in 2010.

Rusman said the increase was attributable to the increases in both oil and gas and non-oil and gas exports.

“[In May 2011] non-oil and gas exports reached US$14.22 billion and oil and gas exports US$4.11 billion,” he said, as quoted by tempointeraktif.com.

Rusman added that coal and vegetable oil contributed the most to the increase in the non-oil and gas exports.

He also said that China was the top destination for non-oil and gas exports, followed by Japan and the US.

“The total value of exports to China was US$1.81 billion, to Japan $1.53 billion and the US $1.32 billion,” Rusman said.

RI posts record historical exports value in May

Cempaka — Fri, 01 Jul 2011 09:09:00 +0000

The Jakarta Post, Jakarta | Fri, 07/01/2011

“This is a new record for exports, compared with the December 2010 figure, which stood at US$16.83 billion,” BPS head Rusman Heriawan told a press conference at his office in Jakarta.

Cumulatively, Indonesia’s exports values in the January-May period reached $80.28 billion, an increase of 33.37 percent from the same period in 2010.

Rusman said the increase was attributable to the increases in both oil and gas and non-oil and gas exports.

“[In May 2011] non-oil and gas exports reached US$14.22 billion and oil and gas exports US$4.11 billion,” he said, as quoted by tempointeraktif.com.

Rusman added that coal and vegetable oil contributed the most to the increase in the non-oil and gas exports.

He also said that China was the top destination for non-oil and gas exports, followed by Japan and the US.

“The total value of exports to China was US$1.81 billion, to Japan $1.53 billion and the US $1.32 billion,” Rusman said.

RI posts record historical exports value in May

Cempaka — Fri, 01 Jul 2011 09:09:00 +0000

The Jakarta Post, Jakarta | Fri, 07/01/2011

“This is a new record for exports, compared with the December 2010 figure, which stood at US$16.83 billion,” BPS head Rusman Heriawan told a press conference at his office in Jakarta.

Cumulatively, Indonesia’s exports values in the January-May period reached $80.28 billion, an increase of 33.37 percent from the same period in 2010.

Rusman said the increase was attributable to the increases in both oil and gas and non-oil and gas exports.

“[In May 2011] non-oil and gas exports reached US$14.22 billion and oil and gas exports US$4.11 billion,” he said, as quoted by tempointeraktif.com.

Rusman added that coal and vegetable oil contributed the most to the increase in the non-oil and gas exports.

He also said that China was the top destination for non-oil and gas exports, followed by Japan and the US.

“The total value of exports to China was US$1.81 billion, to Japan $1.53 billion and the US $1.32 billion,” Rusman said.

RI posts record historical exports value in May

Cempaka — Fri, 01 Jul 2011 09:09:00 +0000

The Jakarta Post, Jakarta | Fri, 07/01/2011

“This is a new record for exports, compared with the December 2010 figure, which stood at US$16.83 billion,” BPS head Rusman Heriawan told a press conference at his office in Jakarta.

Cumulatively, Indonesia’s exports values in the January-May period reached $80.28 billion, an increase of 33.37 percent from the same period in 2010.

Rusman said the increase was attributable to the increases in both oil and gas and non-oil and gas exports.

“[In May 2011] non-oil and gas exports reached US$14.22 billion and oil and gas exports US$4.11 billion,” he said, as quoted by tempointeraktif.com.

Rusman added that coal and vegetable oil contributed the most to the increase in the non-oil and gas exports.

He also said that China was the top destination for non-oil and gas exports, followed by Japan and the US.

“The total value of exports to China was US$1.81 billion, to Japan $1.53 billion and the US $1.32 billion,” Rusman said.

RI posts record historical exports value in May

Cempaka — Fri, 01 Jul 2011 09:09:00 +0000

The Jakarta Post, Jakarta | Fri, 07/01/2011

“This is a new record for exports, compared with the December 2010 figure, which stood at US$16.83 billion,” BPS head Rusman Heriawan told a press conference at his office in Jakarta.

Cumulatively, Indonesia’s exports values in the January-May period reached $80.28 billion, an increase of 33.37 percent from the same period in 2010.

Rusman said the increase was attributable to the increases in both oil and gas and non-oil and gas exports.

“[In May 2011] non-oil and gas exports reached US$14.22 billion and oil and gas exports US$4.11 billion,” he said, as quoted by tempointeraktif.com.

Rusman added that coal and vegetable oil contributed the most to the increase in the non-oil and gas exports.

He also said that China was the top destination for non-oil and gas exports, followed by Japan and the US.

“The total value of exports to China was US$1.81 billion, to Japan $1.53 billion and the US $1.32 billion,” Rusman said.