ASEAN Affairs Forum

[nufix]

IRAQ, An Opening For Indonesia Incorporated

JAKARTA: PT Pertamina said their readiness to initiate the first project of Indonesia Incorporated in Iraq.

Senior Vice President Corporate Investment and Business Development Pertamina Gusrizal said the cooperation between Indonesia and Iraq will fall under the Indonesia Incorporated Program.

This project will include the construction of power plants, pipelines, housing, hospitals, schools, and fertilizer plants in the country after the war shattered the country a few years ago.

The project was initiated by Pertamina and powered by PT PLN (Persero), PT Wijaya Karya (Persero), PT Adhi Karya (Persero), and PT Hutama Works (Persero) as the subcontractors.

"Iraq is a country with the world fourth largest oil reserve and the country will aggressively increase its oil production to 11 million barrels per day by 2016," said Gusrizal in a seminar entitled Strengthening National Economy Through Indonesia Incorporated held by Bisnis Indonesia in Jakarta, Wednesday (12/19).

Gusrizal said Iraq reconstruction requires a large investment in oil and gas, electricity, construction, agriculture, telecommunications, health, water resource management, petrochemical industry, food and medicine.

"Iraq was chosen because we believe Iraq will thrive. They only constrained by inadequate infrastructure facilities, "he said.

In the process of reconstruction of infrastructures, Iraq requires the involvement of other countries including Indonesia, which has a background of solid bilateral relationship. (t03/msw)

 

[Reashot Xigwin]

Dahlan Iskan present the Electric Car Tuxuci.

Dahlan Iskan with the "Ferrari esque" Tuxuci. A Pride of the nation.

Jakarta, KompadOtomotif - State Enterprises Minister Dahlan Iskan formally introduce an indigenous electric sports car called the Tucuxi at Bung Karno Stadium in South Jakarta, today (22/12/2012). The two passenger cars were designed by Suryatama Danet, who have worked in the U.S. Chrysler.

Tucuxi appearance is actually a lot slower than the previous plan August 10, 2012, but has done today. "The problem is, the design from these men is created in the U.S., so he can only come into Indonesia every two month.'s Why the process a bit longer," said Dahlan.

Besides, he added, the constraints in battery shipments from the U.S.. "Today, I feel there is still a little problem on the power steering, but easily solved later," said Dahlan who drove himself from his residence in the complex Tucuxi Widya minister Chandra towards the Bung Karno. He said the trip taken 10 minutes and he had sped up to 120 kph before.

According to Dahlan, the battery is fully charged, Tucuxi can walk up to 400 miles or 4 hours. 're Charging takes up to 5-6 hours. Tucuxi done by home modifications Butterfly Night in Yogyakarta since early 2012. The price is priced from IDR. 1.5 billion per unit/around USD 150.000.


So... Anyone interested in buying one?

 

[nufix]

Dahlan Iskan present the Electric Car Tuxuci.

Dahlan Iskan with the "Ferrari esque" Tuxuci. A Pride of the nation.

Jakarta, KompadOtomotif - State Enterprises Minister Dahlan Iskan formally introduce an indigenous electric sports car called the Tucuxi at Bung Karno Stadium in South Jakarta, today (22/12/2012). The two passenger cars were designed by Suryatama Danet, who have worked in the U.S. Chrysler.

Tucuxi appearance is actually a lot slower than the previous plan August 10, 2012, but has done today. "The problem is, the design from these men is created in the U.S., so he can only come into Indonesia every two month.'s Why the process a bit longer," said Dahlan.

Besides, he added, the constraints in battery shipments from the U.S.. "Today, I feel there is still a little problem on the power steering, but easily solved later," said Dahlan who drove himself from his residence in the complex Tucuxi Widya minister Chandra towards the Bung Karno. He said the trip taken 10 minutes and he had sped up to 120 kph before.

According to Dahlan, the battery is fully charged, Tucuxi can walk up to 400 miles or 4 hours. 're Charging takes up to 5-6 hours. Tucuxi done by home modifications Butterfly Night in Yogyakarta since early 2012. The price is priced from U.S. $ 1.5 billion per unit.


So... Anyone interested in buying one?

Not USD 1.5 billion, this car is priced IDR 1.5 billion (around USD 150.000) per unit

 

[Reashot Xigwin]

Not USD 1.5 billion, this car is priced IDR 1.5 billion (around USD 150.000) per unit

ups salah ketik nih, makasih buat ngasih tau mas

 

[Reashot Xigwin]

Indonesia Announces New Diplomatic Ties With Nauru

Indonesia has established diplomatic ties with the South Pacific island nation of Nauru, in a bid to expand opportunities and strengthen ties between the two countries.

Desra Percaya, Indonesia's permanent representative to the United Nations, said he expected the opening of these diplomatic relations would lead to more opportunities and deepen cooperation in various sectors, especially in the fields of climate change, disaster risk management and South-South cooperation.

Nauru is the 183rd member of 193 members states of the United Nations with which Indonesia has established diplomatic relationships. Indonesia had already officiated diplomatic ties with Botswana, Tuvalu and Haiti earlier this year.

Desra and Nauru's permanent representative to the United Nations, Marlene Moses, marked the occasion with the signing of a joint communique in New York last Friday.

Moses expressed hope that Indonesia would continue to help the small Pacific nations voice their needs in global environmental forums.

“One thing that the Pacific people really remember and appreciate was when Indonesia led a discussion on a climate change resolution in a UN forum, which results in an agreement in line with the interests of Pacific countries, especially in the context of global warming, which threatens the existence of these countries,” Moses said in a statement released on the weekend.

Nauru drew the attention of Indonesia's media in August after Australia re-opened its detention center in the small island nation to process asylum seekers and refugees arriving by boat to Australia. Indonesia has been a major transit country for these people trying to reach Australia.

In November, an Amnesty International team visited the Nauru camp and described it as “a human rights catastrophe ... a toxic mix of uncertainty, unlawful detention and inhumane conditions.”


Indonesia's Tourism Industry Gaining Speed

Finding flights and accommodations to Bali, Indonesia’s biggest resort area, might be difficult this time of year, highlighting the country as a destination of choice among foreigners.

Indonesia is well on its way to meet its target to host 8 million international tourists this year, said Mari Elka Pangestu, the Minister of Tourism and Creative Economy, last week.

“It must be highlighted that until October, the amount of international tourists [visiting Indonesia] was increasing by 5 percent, which is higher than the estimated average growth globally, which is around 3 to 4 percent this year,” she said.

Indonesia secured at least $9 billion in foreign exchange revenue from tourists arriving in the country, a 6 percent increase from last year’s $8.5 billion, she added.

The average spending of international tourists in Indonesia was $1,133.81 in the January-October period, a slight increase from $1,118.26 in 2011, while the length of stay dropped to an average 7.7 days per visit from 7.84 days, Mari said in her year-end statement.

“This is because there is an increase of visits from regional tourists because of an economic slowdown in Europe,” she added.

Indonesia expects domestic tourism this year to generate Rp 171.5 trillion ($18 billion) in revenue, which would be up 9.3 percent from last year.

She estimated that there will be 245 million trips for all of this year, up 3.8 percent from last year’s 236 million trips.

Domestic tourists spent an average of Rp 700,000 per trip so far this year, up 5.6 percent from Rp 662,680 a year earlier.

This is in line with the rise of Indonesia’s middle class, and the increased purchasing power that comes with it.

Investors are feeling bullish on the prospect of the tourism industry in Indonesia.

In the first nine months, the country took in $729.7 in direct foreign investment for hotels and restaurants, which shows close to a threefold increase from last year $242.2 million.

While domestic investors poured $86.1 million into the industry, up from $39.4 million.

The ministry predicts a significant increase of international tourists next year, partly because Indonesia will host several world-class events, including the Asia Pacific Economic Cooperation summit, the Ministerial Meeting of the World Trade Organization, and the Miss World Pageant.

All of the three events will be organized in Bali.

“We have set an optimistic target of 9 million international tourists next year,” Mari said. “This target is a stepping stone for achieving visits of 10 million tourists in 2014.”

The ministry has divided the country’s tourism destinations into seven categories: sports tourism, like diving an d golf; eco-tourism; cruise ship tourism; spa and medical tourism; culture and heritage tourism; culinary and shopping tourism; and tourism from MICE, or meeting, incentives, conferences and events.

The ministry incorporated the word “creative economy” when Mari was reassigned as its minister from the trade ministry last year.

Mari has repeatedly claimed that Indonesia’s creative industry contributed around 6 percent to 7 percent to gross domestic product.

Indonesia’s creative economy exports, she said, reached $10 billion a year and have the opportunity to keep growing. The creative economy also opened up jobs, employing more than 11 million Indonesians and accounting for 7 percent of job creation in the country.

Companies from abroad are also converging in Jakarta to do business in Indonesia, filling up hotels and taking prime office space that approaches full occupancy.

 

[Reashot Xigwin]

A Smart Grid Can Help Sustain Indonesia’s Growth
Sonita Lontoh | December 24, 2012

Sonita Lontoh, an executive at a leading Silicon Valley smart grid company.

With its rapid growth, Indonesia faces a daunting challenge to upgrade its various critical infrastructures — from roads to airports to energy infrastructure. Yet the price the country will pay in failing to invest in its infrastructure is enormous.

Last week, once again, we saw Indonesia’s largest airport and main gateway crippled by a blackout caused by a breakdown in its electrical infrastructure. More than 100 flights and thousands of people were affected. While this particular occurrence was relatively brief and did not cause any casualties, incidents such as this damage investor confidence and the country’s image.

The country has historically lagged behind its neighbors in infrastructure investments. In 2011, Indonesia spent about 1.7 percent of its gross domestic product on infrastructure, compared to Malaysia’s 5.4 percent and Thailand’s 3.6 percent. Experts believe Indonesia needs to spend much more in infrastructure to continue its impressive growth streak.

With its inadequate energy infrastructure, Indonesia experiences blackouts relatively frequently. Several years ago, a massive power outage left more than 100 million people — approximately half of the country’s 240 million population — without electricity for hours.

The Electric Power Research Institute estimated that annual power outages cost the US economy about $150 billion per year. Extrapolating this for the size of the Indonesian economy — with a GDP of approximately $1 trillion compared to the US GDP of $15 trillion — power outages have the potential of costing the Indonesian economy of approximately $10 billion per year. This shows a clear need for a smart strategy to generate, distribute and manage the country’s energy resources to fuel Indonesia’s growing economy sustainably.

The country needs to take innovative approaches in the energy sector to answer the challenges of increasing energy demands, inadequate energy infrastructure, and the need to reduce greenhouse gas emissions. President Susilo Bambang Yudhoyono has set an ambitious plan to cut emissions by 26 percent by 2020, while at the same time setting an economic growth target of more than 6 percent.

A smart grid can help the country modernize its energy infrastructure by enabling enhanced energy efficiency, improved grid reliability and the integration of more renewable and distributed energy resources.

What is a smart grid exactly?

While there is no one definition of a smart grid, it is essentially the layering of intelligence across our whole energy value chain — from generation to transmission to distribution to the homes and buildings, and even to beyond the homes and buildings all the way to distributed energy resources such as smart appliances, solar panels, storage and electric vehicles. By layering this intelligence, the smart grid essentially creates a two-way communication between our energy supply and energy demand, which results in a more balanced and efficient system of energy supply and demand.

To improve grid reliability, a smart grid can help reduce both the number and duration of outages by quickly pinpointing the cause and in some cases, automatically restoring power quickly. A smart grid can also prevent massive blackouts by isolating an outage and ensuring that it does not cascade to other areas. Recently, some utilities in the eastern United States have found that their investments in smart grid technologies made a difference in the herculean efforts to restore power to millions of customers adversely affected by hurricane Sandy.

As a smart grid is just an implementation of technology, the country needs to have a smart energy strategy that embraces both current and future energy infrastructures. In some areas where the energy infrastructure is non-existent, the country has the potential to leapfrog to smart grids and renewable energy, instead of focusing on building traditional power systems. In other areas where the current energy infrastructure exists but needs upgrading, the country needs a cohesive strategy that up-levels the traditional infrastructure today while at the same time keeps an eye for the advanced needs of tomorrow.

Indonesia has the choice — and the opportunity — to overcome many of its energy challenges, such as poor infrastructure, low reliability, supply/demand imbalance, and environmental impacts, through the embrace of a cohesive smart energy strategy for the creation of a smarter grid. With the right choice, Indonesia has the golden opportunity to serve as a role model, not only for Southeast Asia, but also the world.



Sonita Lontoh is an executive at a leading Silicon Valley smart grid company. She is the recipient of the Indonesian Diaspora award and has been named a Global Emerging Leader under 40.

 

[nufix]

Indonesian Oil and Gas is Going Local, SKMigas Says

Faisal Maliki Baskoro | December 26, 2012

Indonesia is becoming slightly less dependent on foreign investment in developing its oil and gas sector, as shown by the increasing number of local investors.

According to SKMigas, a temporary oil and gas regulatory body at the Energy and Mineral Resources Ministry, the total committed procurement value in the oil and gas sector reached $13.74 billion.

“Around $8.5 billion, or 63 percent, from that procurement is using local content. We are committed to increasing the use of domestic products to develop our oil and gas sector,” Gerhard Rumeser, deputy general affairs director at SKMigas, said in a statement on Tuesday.

The committed procurement value in 2011 was $11.81 billion, with local content accounting for 61 percent.

The increased local content is partly contributed by state companies as they are engaging more and more in Indonesia’s oil and gas exploration and production. Gerhard said that this year, state-owned enterprises accounted for $1.69 billion of procurement value, up from $630 million last year.

“In order to protect national interests and to promote domestic participation in the oil and gas sector, we have issued a regulation stating that foreign companies must partner with a national-scale local company to participate in procurement tenders. This regulation is proven to be effective,” he said.

Local banks are also encouraged to participate in the oil and gas sector. The government has also made a regulation saying that all procurement transactions use local banks.

According to SKMigas data, in 2009 local banks booked a transaction of $3.97 billion related to oil and gas procurement. Local banks have booked a total transaction of $22.15 billion cumulatively through November.

SKMigas is also looking into ways to make costly procurement less expensive. The government regulatory body claimed it has saved $123.97 million in the first half of this year by arranging joint procurement and asset optimization.

“Last year, we managed to save $103.5 million. We are optimistic that we can exceed our target of $125 million this year,” said Hadi Prasetyo, SKMigas head of public relations, security and formality.

Hadi explained that joint procurement initiatives include contract sharing on helicopters and plane charters with ConocoPhillips, Premier Oil, and Star Energy in the Natuna block and the Riau Islands.

 

[nufix]

Raw Commodity Export Ban Sparks Smelter Building Boom in Indonesia


As the government gears up to ban all exports of unprocessed commodities, Indonesia will see 12 new smelters in operation by the end of 2014, a senior ministry official said on Tuesday.

The smelters, which will help process the nation’s mineral and coal output, are owned by local and international companies, said Thamrin Sihite, the director general of mineral and coal at the Ministry of Energy and Mineral Resources.

In Cilegon, Banten province, steel billets producer Indoferro will build a smelter with a processing capacity of up to 500,000 tons of sponge iron per year. It is expected to be in operation sometime this year, Thamrin said.

DH Energy and its affiliated coal miner will also build a coal upgrading facility to produce up to five million tons of high-calorific value coal products for the export market by 2013.

State-miner Aneka Tambang (Antam) will build smelters in Halmahera, North Maluku, to produce 27,000 tons of ferronickel annually; in North Konawe, Southeast Sulawesi, for 120,000 tons of “pig iron” annually; and in Mempawah, West Kalimantan, for one million tons of smelter-grade alumina. The smelters are expected to be ready in 2014.

Ferronickel, pig iron and smelter-grade alumina are all processed commodities .

A joint venture between Antam and two Japanese companies, Showa Denko and Marubeni Corporation, will produce 300,000 tons of chemical-grade alumina annually with a smelter in Tayan, West Kalimantan.

Krakatau Steel and South Korea’s Posco are also teaming up to build a plant that will produce 3.5 million tons of steel plate, 2.5 million tons of slab steel and 3 million tons of hot rolled coil. Operations are targeted to begin in 2014.

The government earlier this month issued a regulation to implement a new law that will ban the export of unprocessed commodities.

The ban will begin in May for miners in the processing stage and in three years for those in the exploration stage.

Companies that breach the regulation will face sanctions,including the revocation of their mining licenses and the suspension of their shipping activities.

The government said earlier that it expects all raw minerals to be processed prior to shipment by 2014.

Antara

 

[Viet]

More Vietnamese tourists choose Thailand
12/29/2012 4:26:08 PM VOV



The number of Vietnamese tourists to Thailand has jumped 10-fold in the past 12 years, rewarding the efforts of the Thai Government to attract more Vietnamese visitors.

According to the Tourism Authority of Thailand's HCM City office, more than 530,000 Vietnamese visited Thailand in the first 10 months of this year. In 2000 the number had been a mere 57,000.

Vietnam is the 13th largest tourism market for Thailand. Vietnamese tourists are fairly big spenders in Thailand, said Chutathip Chareonlarp, director of the Tourism Authority of Thailand in HCM City.

Last year it was estimated that 430,000 Vietnamese tourists spent 13.68 billion THB (US$446 million) in Thailand.

Though the figures for 2012 have not been calculated yet, with tourist arrivals rising by 20-30 percent, the amount could top US$500 million. The average length of stay of a Vietnamese tourist was 6.04 days last year, with an average daily expenditure of THB4,035. The rate of repeat visitors was reported at around 60 percent.

Thailand has the advantage of low prices and plenty of tourist attractions and entertainment options, and its Tourism Authority actively organises familiarisation trips for media agencies in Vietnam.

The top five destinations for Vietnamese visitors are Bangkok, Pattaya, Phuket, Kanchanaburi, and Udon Thani. Destinations gaining popularity include the northeastern region, Samui Island, and Phuket.

 

[Reashot Xigwin]

ASEAN’s Year in Review
Southeast Asia
January 01, 2013
By Luke HuntAbout the author
Luke Hunt


2012 saw ASEAN making global headlines over the South China Sea, while member nations tackled a host of internal challenges -- some better than others.

2012 has etched itself into the history books. During the last twelve months Southeast Asia regularly made global headlines largely due to competing territorial claims between China and various neighboring states.

Certainly, the result was not what China hoped for.

Beijing's actions in the South China Sea and claims over the Spratly and Parcel Islands elevated the status of the 10-member Association of South East Asian Nations (ASEAN) on the global diplomatic stage.

Against this backdrop the United States continued implementing its "rebalance" to Southeast Asia, raising the diplomatic stakes in the confrontation, much to China's irritation.

The issue also divided ASEAN like never before. Several ASEAN members have overlapping claims with China in the South China Sea. Throughout the year Vietnam and the Philippines took the lead in challenging Beijing while Malaysia and Brunei adopted a more muted tone in the dispute.

Beijing tried to thwart efforts by Manila and Hanoi to establish a united ASEAN position on negotiations with China over its territorial ambitions. China wants to deal with each claimant bilaterally and has resisted efforts to bring the dispute before international courts.

Cambodia had a difficult year as chair of ASEAN. Phnom Penh – a long term beneficiary of Chinese aid and soft loans – often times pushed China’s agenda at summits between Southeast Asian leaders winning it few friends. A stalemate persists.

China could often rely on Cambodia’s legendary former monarch and King Father, Norodom Sihanouk for help in soothing regional relations. But the man who led Cambodia against the Japanese occupation in World War II, and after independence in 1953, passed away in October.

The public response to his death was overwhelming and of great concern to Prime Minister Hun Sen, whose government was under constant fire at home and from international human rights groups over allegations of widespread land-grabbing by the rich and powerful and an escalation in the government's use of violence.

Environmentalist Chhut Vuthy was shot dead in a confrontation over a land concession given to a Chinese company. Charges against Chhouk Bundith, a district governor who was photographed waving a gun after witnesses said he shot three women at a labor protest, were dropped. Equally incredulous was the jailing of veteran broadcaster Mam Sonando, who was convicted of trying to organize a secession movement. Mam Sonando, like Chhut Vuthy, also had a habit of criticizing the government, however, Born Samnang and Sok Sam Oeun did not. The pair, after years of legal wrangling, were again jailed for the 2004 murder of Chea Vichea, a prominent union official who did have a habit of criticizing Hun Sen. That decision also outraged human rights groups who argued the pair were simply scapegoats.

Laos followed Cambodia’s lead and signaled it was also moving closer to China through a series of billion-dollar-contracts for the construction of dams, roads and railways. In order to achieve this, Laos has committed itself to Chinese banks and profits from the $3.5 billion Xayaburi Dam.

The dam will block the mainstream of the Mekong River, endangering fish migration patterns and much needed food stocks in Vietnam and Cambodia where 60 million people depend on the river for their livelihoods. Vientiane ignored objections, led largely by its traditional ally, Hanoi, where Prime Minister Nguyen Tan Dung was having his own troubles with a Communist Party that was angered by his handling of Vietnam’s economy. In August, the nation’s Appeals Court upheld convictions against nine former executives of Vinashin, Vietnam’s largest ship builder, for misappropriating funds. All had close ties with Dung.

In stark contrast was Indonesia’s economy, which enjoyed a stable year ahead of upcoming elections while the country’s Foreign Minister, Marty Natalegawa, positioned himself as a potential regional leader after he patched up differences — If only temporarily — within ASEAN over China’s advances in the South China Sea.

But the jailing of Umar Patek, a leader of the now defunct al-Qaeda-linked Jemaah Islamiya (JI) was also a welcome development for Indonesia. Patek was the last of the Bali bombers to be caught by Indonesian authorities, signaling an end to a horrific decade where the military focus was almost exclusively centered on counterterrorism.

A peace deal in the southern Philippines between The Moro Islamic Liberation Front (MILF) and the national government has also raised hopes for a more peaceful new year. The deal is yet to be approved by parliament but, if approved, it should go a long way towards shoring up support for President Begnino Aquino, whose election in 2010 was due in part to his pledge to find a lasting peace in the country’s south.

While Aquino enjoyed a solid year at the helm the same could not be said for the woman he replaced more than two years ago. Gloria Arroyo was charged with various crimes stemming from her nine years as president and her association with questionable businessmen.

Former Thai Prime Minister Abhisit Vejjajiva will also soon appear before the courts after being charged with the murder of a civilian during a crackdown on anti-government protests two years ago when he was in power. About 90 people were killed and 1,900 wounded during the confrontation between Red Shirts and the military.

Current Prime Minister Yingluck Shinwatra, however, had a better year after surviving a no confidence vote and Yellow Shirt protests. The Supreme Court also ruled in favor of her Peau Thai Party. But problems with Muslim insurgents in the country’s south and the economy persisted. Thailand's biggest fiscal headache was driven by the government's promise to pay rice farmers at higher than market prices for their product. The hope that this policy would push global rice prices higher has not been borne out. Instead, the policy has resulted in Thailand accumulating a mountain of unsold rice and debt.

While many Southeast Asian countries fared poorly in Transparency International’s annual corruption survey, Malaysia proved to be an exception. The country climbed to the 54th spot out of 176 countries, up from 60th a year earlier. The independence of Malaysia's judicial system was also bolstered when the High Court acquitted opposition leader Anwar Ibrahim of charges that he and many of his supporters said were politically motivated. His rival Prime Minister Najib Razak kept his political cards close to his chest, fending off demands for electoral reforms while at the same time threatening to call an early poll which never materialized.

Singapore again performed well on the corruption index, ranking as the 5th least corrupt country in the world. Less flattering was another survey that ranked the city-state as the most emotionless place on Earth. Singaporeans were annoyed but such feelings became harder to defend after the government, soon after the survey’s release, refused entry to what was believed to be a boat carrying 40 Muslim Rohingyas who had survived being shipwrecked after fleeing the violence in northern Burma. The deportation of immigrant Chinese bus drivers who called a strike – unheard of in Singapore for 26 years – didn’t help such perceptions.

New governments were elected in Papua New Guinea, and in East Timor.

But by year’s end it is Burma that has emerged as the region’s greatest hope, despite the continued violence between Buddhists and Muslims in Rakhine. Bolstered by an unprecedented visit to his country by U.S. President Barack Obama, Burmese President Thein Sein won over many of his country’s critics as his political reforms continued to make headway. There was even one suggestion – ludicrous and insensitive – that Thein Sein should be nominated for a Nobel Peace Prize. But such thoughts were likely dismissed after his military allegedly launched a surprise and bloody Christmas offensive against rebels in Kachin state, ensuring Burma will again be topping the international headlines for all the wrong reasons as 2013 gets underway.

 

[Reashot Xigwin]

Rupiah gains 20 points against US dollar

Fri, January 4 2013 14:12 |

Jakarta (ANTARA News) - The Indonesian currency rupiah gained 20 points against the US dollar this morning due to positive European sentiments.

Rupiah traded at 9,645 to the US dollar, strengthening from its initial level of 9,665.

"The Indonesian currency became strong because of positive sentiments from Europe," said Reza Priyambada, an analyst at Trust Securities, on Friday.

Apart from Europe, China also has positive sentiments. So, China's positive sentiments could have been compensated by negative sentiments from the US.

"China's economic data shows positive figures. China's positive sentiments could have been compensated by negative sentiments from the US, where Moody's Corporation will reduce the US credit rating," he said.

According to him, investors are worried because the US government has not agreed to increase the limit of the US debt. This will affect government bond issuance plans in the future.

"Apart from that, Indonesia`s negative trade balance can prevent the Indonesian currency from becoming stronger," he said.

Ariston Tjendra, head of Research Futures Investindo, added that US policy makers are worried that it will be difficult to increase the limit of the US debt, even though the country had been successful in avoiding the fiscal cliff.

"This could reduce the demand for risky assets," he said.
(S038/KR-BSR/O001)

Editor: Jafar M Sidik

COPYRIGHT © 2013



Govt to redenominate rupiah currency: Official

Fri, December 7 2012 22:04 |

"The redenomination of the rupiah value will take a long process of about eight years," Director General of State Treasury of the Finance Ministry Agus Suprijanto said.

Image thx to Dasril Iteza.

Jakarta (ANTARA News) - The Indonesian government will redednominate the rupiah value beginning in 2014 and will be completed in 2022, a senior Finance Ministry official said.

"The redenomination of the rupiah value will take a long process of about eight years," Director General of State Treasury of the Finance Ministry Agus Suprijanto said here on Friday.

He said the process will start in 2014 if the law to that effect was accomplished in 2013 and its popularization was already carried out in the same year.

The redenomination process is expected to be completed in 2022.

"The draft law on it has been submitted to the House for deliberation from January to June 2013," he said.

Redenomination is the simplification of the rupiah nominal by reducing three zeros in one unit of the currency so that money with a nomination of Rp1,000 will become Rp1.

The redenomination process will start in 2014 and finish in 2018 when the new rupiah with a new nominal will begin to be circulated but the old rupiah type is not yet withdrawn until the process is completed.(*)

Editor: Heru

COPYRIGHT © 2012

 

[auspice]

Philippine Economy projected to grow 7.5-8% this year

MANILA, Philippines - The Philippine economy is expected to further expand by 7.5 to eight percent this year on the back of heavy election spending, increased infrastructure projects, robust consumer and service sectors, and stronger tourism and gaming industry, economists said.

In an economic outlook forum yesterday, First Metro Investment Corp. (FMIC) said they have “ a very optimistic outlook for the Philippine economy for 2013.”

FMIC chairman Francisco Sebastian said with a 7.1 percent in gross domestic product in the third quarter of 2012, a lower than expected inflation rate of 3.2 percent, gross international reserves (GIR) rising rapid and a debt-to-GDP ratio that has fallen below 50 percent, the Philippines is definitely now on the rise.”

The country’s GDP is estimated to grow at 6.3 percent while GIR was at $84.5 billion in 2012.

The country’s international reserves come from government’s foreign borrowings, remittances from OFWs and portfolio investments.

OFW remittances will remain resilient, according to FMIC, at four to five percent growth despite the Israeli-Palestine conflict, euro zone debt problem and the fiscal cliff in the US as demand for Filipino workers will be sustained, which will continue to stimulate and intensify domestic consumption.

“The economy is in an unprecedented growth momentum, supported by solid fundamentals,” Sebastian said.

“As a result of robust economic growth, the government’s pungent anti-corruption stance that has improved tax administration and with new tax revenue sources, budget deficit will remain low and may not reach P200 billion or 1.5-1.6 percent of GDP. Debt-to-GDP ratio is expected to fall further and it will be lower than Thailand,” FMIC president Roberto Juanchito Dispo said.

Dispo said they also expect a revival of mining companies in order to sustain the resurgence of the manufacturing sector.

Despite the positive outlook, University of Asia and the Pacific (UA & P) economist Vic Abola, for his part, warned of the internal threats that need to be closely looked at.

Abola said growth could be hampered by the peso appreciation as this would redound to slower growth in imports/exports ratio; lower job creation and lower tax collections.

But imports, FMIC officials said, is expected to significantly jump 10 to 15 percent supported by high domestic growth as well as resurgence of the manufacturing sector.

FMIC, in its outlook, said the peso will remain in an appreciation trend and is seen to average at 41 to 42 to the dollar this year. UA&P, on the other hand, sees the peso to averaging 42 to a dollar in 2013. The peso settled at 41 average in 2012.

The power shortage especially in Mindanao, Abola said, would also dampen investment activities in the province which may cause a dent in the entire economy.

The UA&P economist also took note of the threat of possible real estate bubble.

Monetary authorities must also keep track of the inflation rates.

“Inflation is anticipated to further drop to an average of 2.8 percent supported by stable food and oil prices. The National Government is spending more money in agriculture in the form of rehabilitation and construction of more irrigation systems, farm-to-market roads and storage facilities. International rice prices have also remained stable due to abundant inventories,” FMIC noted.

FMIC said further softening of oil prices is expected as a result of larger surplus with the continued expansion of shale oil and gas output in the US and Russia. Oil price forecast is at $93 per barrel.

Lower interest rates, on the other hand, would affect the income performance of companies, particularly those engaged in financial transactions, FMIC assistant vice president Bede Lowell Gomez said.




Market breaks 6,000-pt mark: PSEi seen to hit 6,800 this year

MANILA, Philippines - The Philippine stock market continued its bull run yesterday, breaking the 6,000-point mark for the first time in the 86-year history of stock trading in the country as investors cheered the positive economic news here and abroad.

The Philippine Stock Exchange (PSE) index rallied by 1.23 percent, or 73.46 points, to post another record close at 6,044.91, which is also the new intraday high.

Analysts are expecting share prices to continue posting robust growth this year, giving investors decent returns on the back of a strong uptick in corporate earnings and the economy. They said the PSEi will likely hit the 6,680 to 6,800-point mark this year.

All subindices were in the green, led by the mining and oil sector which rose by 1.79 percent or 358.56 points to 20,396.43 while financial firms added 1.57 percent or 24.37 points to 1,576.95.

Advancers outpaced decliners, 107 to 71, while 39 stocks remained unchanged as trading value hit P8.511 billion.

Yesterday’s close was the fourth consecutive record high notched by the PSEi since trading resumed on Wednesday, Jan. 2, after pausing for the New Year holidays. The market lodged 38 all-time highs last year.

“We are very proud to have reached and breached the 6,000 level which affirm that market liquidity continues to be strong and investor sentiment remain positive over good news both locally and abroad,” said PSE president and CEO Hans B. Sicat.

“Basically, most investors took directions from Wall Street’s latest ascent last Friday,” Freya B. Natividad, investment analyst at brokerage firm 2Trade-Asia.com, said in a phone interview.

“Investors also factored in the benign inflation outlook for the year as well as aggressive government and private spending on top of the first half election spending,” Natividad added.

Philippine inflation in December was only 2.9 percent, bringing the full year inflation figures to 3.2 percent that is at the lower end of the central bank’s 3-5 percent target.

“We continue to get good numbers like the benign inflation data last week,” said Bede Lovell S. Gomez, assistant vice-president of First Metro Investment Corp.

“There is a favorable sentiment coming out from the regional and global market,” he added.

Standard & Poor’s 500 index closed last week at a five-year high as the US evaded the fiscal cliff.

In the local market, most actively traded shares were in the green, led by Megaworld Corp. that surged by 8.82 percent while BDO Unibank Inc. inched up by 0.74 percent.

“For the rest of the week, there might be re-testing of new highs,” Natividad said, adding that immediate support level is at 5,930-5,960 while resistance is at 6,100.

http://www.philstar.com/business/20...t-breaks-6000-pt-mark-psei-seen-hit-6800-year

 

[Viet]

Construction of Vietnam-Cambodia border market begins
1/9/2013 9:00:00 AM Voice of Vietnam

Cambodia-Vietnam auxiliary border gate

Construction of a Vietnam-Cambodia border market, the first of its kind, commenced at the border between Tay Ninh province of Vietnam and Kompong Cham province of Cambodia on January 8.

A ceremony to mark the occasion was organised by the Ministry of Industry and Trade, the Tay Ninh People’s Committee and the Cambodian Ministry of Commerce.

When completed, the market will create favourable conditions for local businesses and residents to increase trade and improve their living conditions.

Covering an area of 1.8 hectares, the market will include a warehouse, loading bay and a kiosk area.

According to the Tay Ninh’s Department of Industry and Trade, VND20 billion (US$1 million) of goods were traded through Chang Riec-Da border gate everyday in 2012.

 

[Reashot Xigwin]

10 ASEAN Trends to Watch for in 2013
By Prashanth Parameswaran
January 4, 2013

“It’s tough to make predictions, especially about the future,” American baseball icon Yogi Berra is often quoted as saying. It is nonetheless interesting to ponder what major events to watch out for in Southeast Asia in 2013. Below is a list of ten things to keep an eye out for in the region in the new year.

1. How will ASEAN’s new chief fare? Vietnamese Deputy Foreign Minister Le Luong Minh took over as ASEAN Secretary-General on January 1, 2013. He will have big shoes to fill as his predecessor, Surin Pitsuwan, was a dynamic chief during his five-year term – and some argue its most effective one yet. If Surin’s task was to make ASEAN a household name, Minh’s task, as I’ve argued earlier, will be to preserve its centrality in the wake of daunting internal and external challenges. His extensive diplomatic experience will come in handy in achieving the main goals he has outlined, including progress on economic integration and negotiations on the South China Sea. It will also be interesting to see if Minh is able to make progress on some of the reforms Surin has been pushing, such as strengthening the ASEAN Secretariat.

2. New waves in the South China Sea? It’s a no brainer that the territorial disputes in the South China Sea would make this list. In 2012, it was the subject of tensions between China and the Philippines in the disputed Scarborough Shoal, fierce divisions within ASEAN, and Beijing-issued passports containing the so-called “nine-dashed line” in a bold attempt to gain recognition for its extensive claims from other states. What will we see in 2013? Will there be progress towards a binding code of conduct on the South China Sea, another wave of assertiveness by China followed by responses by other claimants, or some calm before the next storm?

3. Will the U.S. ‘rebalance’ sustain? The U.S. “pivot” or “rebalance” to the Asia-Pacific has been met by a mix of content and skepticism by Southeast Asian states. The skepticism is rooted in the fact that the U.S.’ heightened presence in the region may not be sustainable because of domestic economic difficulties, divisive politics, distractions in other regions, and the exit of dynamic personalities such as Hillary Clinton and Kurt Campbell. U.S. officials insist that such concerns are overblown. Nonetheless, 2013 will be the year of judgment for how Southeast Asia features in the foreign policy of President Obama’s second term.

4. Can ASEAN unite? As I’ve pointed out before, outgoing ASEAN Secretary-General Surin Pitsuwan has repeatedly stressed that the organization’s main challenge will be whether member states can move towards greater regional integration. Despite advances in 2012, setbacks have led ASEAN to delay launching the ASEAN Economic Community (AEC) by nearly a year to the end of 2015. More important than any deadline though is the extent to which Southeast Asian states can bridge their differences in 2013 in the interest of not only regional unity, but also broader Asian integration which has ASEAN in the driver’s seat.

5. How “robust” will growth be? Some have been fairly bullish about economic growth in Southeast Asia in 2013. The OECD’s November forecast posited that growth will begin to return to a “robust” pre-crisis average of 5.5% which will be achieved by 2017. The group claims the region will be powered by domestic demand growth and private consumption and investment rather than exports, which will insulate it from slowing growth in India and China. Earlier this month, the Asian Development Bank revised its forecast for Southeast Asian growth from 5.2% to 5.3%. But the key will be the extent to which downside risks in 2013 – principally enduring problems in Europe and uncertainty in the United States – may dampen growth prospects in the region.

6. How will Brunei perform in the hot seat? Turning to specific countries, all eyes will be on Brunei in 2013 as it takes over the ASEAN chairmanship. 2012 was a troubling year for the ASEAN chair Cambodia as it presided over (and some say was responsible for) the organization’s unprecedented failure to issue a joint communique amid allegations that China was using its influence on Phnom Penh to split ASEAN. Some fear that a string of smaller or less developed ASEAN countries chairing the organization – Brunei in 2013, Myanmar in 2014, Laos in 2016 – is a cause for concern. Though Brunei has traditionally preferred maintaining a low profile, being a South China Sea claimant (unlike Cambodia), it may yet prove a capable leader and take a stronger line against Beijing.

7. Change or continuity in Malaysia? Malaysia’s Prime Minister Najib Razak has to dissolve parliament and call for a general election before April 28, 2013, where his Barisan Nasional (BN) party will seek to recover from the unprecedented 2008 loss of its prized two-thirds majority. Despite presiding over a good economic year in 2012, a string of corruption scandals and growing dissatisfaction among Indian and Chinese voters as well as the youth could cause problems for Najib’s party at the polls in 2013. While few expect the world’s longest serving elected political coalition to lose, many expect it to be a closer fight than Najib would like with potential advances by the opposition led by former deputy prime minister Anwar Ibrahim.

8. Will the Myanmar spring endure? While many continue to marvel at the ongoing reform process in Myanmar, some caution that the progress is still reversible. Several twists and turns along the road could derail or delay change. These include resistance from laggards, cronies, and the still powerful military, protests leading to massive crackdowns, raging insurgencies in ethnic minority areas spiraling out of control, and a deterioration in the health of the aging President Thein Sein and opposition leader Aung San Suu Kyi who are both vital to reform efforts. Will the Myanmar spring endure through 2013?

9. Is the Philippine diamond forever? 2012 was an especially good year for the Philippines. Economically, with the country recently registering the highest growth in Asia after China and its stock market repeatedly breaking records, some analysts call it “the diamond of the region”. Other achievements outside the realm of economics have been notable as well, including the inking of a landmark peace agreement with the Moro Islamic Liberation Front (MILF) and the passage of historic legislation on tax reform, reproductive health and enforced disappearances. President Benigno Aquino III enjoys high popularity ratings and has said 2013 will be an even better year. But 2012 will be tough to beat, and major challenges remain, ranging from the unemployment rate and corruption at home to territorial disputes with China abroad.

10. What will elections in Cambodia bring? As early as mid-2012, some were already declaring that the overwhelming victory of Prime Minister Hun Sen’s ruling Cambodian People’s Party in June commune elections meant that it would win a landslide victory in general elections in July 2013. Odds are that Hun Sen will preserve his place in the club of the world’s top ten longest serving political leaders through elections that are far from free or fair. Even so, factors such as the merger of Cambodia’s two leading opposition parties and discontent over issues like land reform nonetheless present potential, albeit narrow openings for limited contestation and perhaps more opposition seats.

Of course, this list is far from comprehensive. It leaves out other issues and several countries that could steal the show in 2013 as well as potential black swans that are hard to predict. Nonetheless, the ten items presented above illustrate that the year of the snake will hardly be a dull one for Southeast Asia and those who watch the region closely.

 

[auspice]

To Heal Divisions, Brunei Must Take Proactive Role in ASEAN Disputes

After a year of intense diplomatic brinkmanship over the management of maritime disputes in the South China Sea, Cambodia passed the rotating chairmanship of the Association of Southeast Asian Nations (ASEAN) to the tiny kingdom of Brunei on Jan. 1.

Recent years have witnessed a dramatic escalation in territorial disputes between China, on one hand, and a number of Southeast Asian nations such as the Philippines and Vietnam on the other. However, the past year in particular marked a major deterioration in regional relations, due in no small part to the failure of ASEAN, under Cambodia’s watch, to adopt a coherent and effective diplomatic solution, be it in the form of a legally binding regional maritime code of conduct or simply a credible modus vivendi among disputing states.

As a result, many are beginning to wonder whether Brunei, known for its low-key diplomatic style, can muster enough political will to, first, steer a unified regional approach and, second, build on diplomatic advances made during the ASEAN chairmanships of Vietnam in 2010 and Indonesia in 2011, which set the contours of a code of conduct and censured China, a nonmember, over its aggressive maneuvering. Overall, there are still reasons to expect a relatively more constructive and decisive ASEAN leadership this year.

Last year, Beijing further stepped up its paramilitary activities in the South China Sea and coaxed its Southeast Asian ally, Cambodia, to quash any form of regional unity regarding the disputes, while the Philippines and Vietnam intensified their pressure on China by deepening strategic-military cooperation with the U.S. and vigorously internationalizing the disputes.As a result, the region splintered along divergent strategic alignments, calling into question ASEAN’s self-described “centrality” as the engine of regional integration and stability.

The situation further deteriorated when China, under its recently installed new leadership, issued a new passport bearing a watermark map portraying all the disputed areas in the region as Chinese territory and announced potentially destabilizing maritime regulations in the disputed waters. Meanwhile, the Philippines and Vietnam solicited wider diplomatic and strategic assistance from sympathetic Pacific powers, such as the U.S., India, Australia and Japan.

Clearly the region can’t afford the current pattern of spiraling escalation to continue in one of the world’s most important sea routes. Nor can it allow the glaring strategic fault lines to widen, especially with ASEAN, among the world’s most dynamic regional markets, set to form an Economic Community by 2015 and hoping to play a pivotal role in actualizing a Comprehensive Economic Partnership in East Asia in upcoming years. This means that there is tremendous pressure on Brunei to revitalize intra-ASEAN cooperation and return the territorial disputes to the center of the group’s agenda.

In particular, Brunei will be pressured by other members to play a more proactive role and abandon its tradition of neutrality. In contrast to some other ASEAN members (.pdf), Brunei has neither contested China’s territorial claims, nor has it questioned Beijing’s notorious nine-dash line doctrine laying them out. Brunei has, at least officially, also shied away from claiming sovereignty over the two South China Sea features that fall within its 200-nautical-mile exclusive economic zone, the Louisa Reef and the Rifleman Bank.

Like Cambodia, hydrocarbon-rich Brunei is experiencing growing interdependence with Beijing in key strategic and economic areas. Major Chinese companies, including Sinopec Engineering, the Zhejiang Henyi Group and the Chinese National Offshore Oil Corp. are involved in big-ticket downstream, refinery and exploration projects in Brunei. China’s involvement in these areas is particularly important, as hydrocarbon exports account for almost 70 percent of Brunei’s GDP, 94 percent of government revenues and 96 percent of total exports.

Moreover, the island state’s ruling monarchy is heavily reliant on petrodollars to prop up its security apparatus and appease its population through generous subsidies and welfare schemes. Not only is China among the largest customers of Brunei’s hydrocarbon exports, but China’s vast consumer markets also represent a major opportunity for Brunei to diversify its economy and unshackle scores of Bruneian small and medium enterprises from the constraints of a tiny domestic market.

Brunei, like Cambodia, is also one of the less influential and newer ASEAN members, in contrast to the longstanding members that have diligently fought for ASEAN centrality over many decades. Therefore, there are doubts as to Brunei’s willingness and strategic maturity to steer the region amid rising territorial tensions. Brunei is already under growing pressure from regional heavyweights such as Indonesia, Singapore and Malaysia to patch up ASEAN’s differences, even as the ascent of former Vietnamese Deputy Foreign Minister Le Luong Minh to the helm of ASEAN as secretary-general could signal a more robust regional response to China’s assertiveness.

Nonetheless, in contrast to Cambodia, Brunei is a direct party to the ongoing disputes in the South China Sea and has a considerable stake in ensuring maritime security in its surrounding waters. Flush with petrodollars and benefiting from a diverse set of external partners, the Bruneian leadership -- known for its history of astute diplomacy -- could also see its chairmanship role as the perfect opportunity to elevate its international profile and project the image of a stable and strong kingdom. Therefore, although the tiny monarchy would prefer to avoid undermining flourishing ties with Beijing, it has vowed to back Indonesia’s so-called Six-Point Principles initiative, which calls for a peaceful, diplomatic settlement of disputes and the development of a binding regional maritime code of conduct.

Despite Brunei’s preference for low-profile diplomacy and its burgeoning energy ties with China, the prosperous kingdom seems to have realized the urgency of more decisively resolving the ongoing disputes and projecting itself as a reliable and responsible regional leader.

WPR Article | To Heal Divisions, Brunei Must Take Proactive Role in ASEAN Disputes