Today Economic 4

Inflation will decline
this year, says analyst

The Jakarta Post, Jakarta | Business | Wed, March 19 2014, 11:04 PM

 

Rating agency PT ICRA Indonesia director Joko W. Widodo predicts that the inflation rate in 2014 will decline from last year.
“We predict that, compared to last year, the inflation rate this year will decline, as several factors that occurred last year are unlikely to be repeated,” he said in Jakarta on Wednesday, as quoted by Antara news agency.
Joko said the inflation rate in 2013 was quite high due to several factors, one of which was the fuel price hike ahead of the fasting month of Ramadan and subsequent celebration of Idul Fitri.
“As is known, the period [of Ramadan and Idul Fitri] is a point where the inflation rate usually increases,” he said.
The fuel price hike ahead of Ramadan and Idul Fitri had worsened inflationary pressures in Indonesia, he added.
The analyst further said that in 2013, the inflation rate reached 8.2 percent, which was quite high, but it was hoped that such high inflation would not be seen again this year.
“This year, markets have shown that the inflation rate will stand at around 4.5 percent, and this level is normal,” Joko said. Such a prediction, he added, had taken into account the impact of electricity prices in the industrial sector. (ebf)

COMMENT :
Anne Karina Sekar
Inflation means there is a sustained increase in the price level. The main causes of inflation are either excess aggregate demand (economic growth too fast) or cost push factors (Supply side factors). The more the governmentt borrows the more it increases money supply. Higher money supply result into access money supply which will lead to high aggregate demand encouraging films to raise prices of their goods and services.Tight fiscal policies and tight monetary policies could also be the solution to inflation. So that our country Indonesia could decrease our numbers of inflations and stays in normal level.
 

Today Economic 3

NZ eyes closer economic
ties with Indonesia 

Linda Yulisman, The Jakarta Post, Jakarta | Business | Tue, March 18 2014, 11:35 AM

New Zealand aims to tighten bilateral ties with Indonesia, which it recognizes as growing in importance regionally and globally, particularly through greater trade and investment over the next five years.

New Zealand Economic Development Minister Steven Joyce said on Monday that the current relationship between the two countries was in “good shape”, especially with around 15 ministerial bilateral visits made last year.

“It’s a big step up and I think it’s developing well, but there’s a lot we can do together,” he said during an interview on the sidelines of a seminar on renewable energy.

Joyce pointed out areas for further cooperation, such as agriculture, geothermal and renewable energy, food and beverage, as well as education.

Joyce, who will conclude his three-day visit to Indonesia on Wednesday, witnessed the signing of a memorandum of understanding (MoU) between Auckland UniServices Limited and the Indonesian Geothermal Association (Inaga).

Under the MoU, UniServices will help enhance the capacity of Indonesian geothermal professionals through training and other aspects in the next two years. New Zealand has so far provided training for 180 local geothermal professionals.

In 2012, the Pacific country also spent US$6.95 million to support the development of two geothermal fields — Ulubelu in Lampung and Lahendong in North Sulawesi — built by Pertamina Geothermal Energy (PGE), a subsidiary of state-owned oil and gas firm PT Pertamina, for the development of its 1,000-megawatt power plants. The $300 million power plants were funded primarily with World Bank loans.

Trade between Indonesia and New Zealand rose by 12.16 percent to $1.27 billion last year, with Indonesia remaining on the deficit side after exporting $469.51 million and importing $805.99 million. The scale of New Zealand investment, however, is relatively small, totaling only $500,000 in 11 projects.

New Zealand Ambassador to Indonesia David Taylor said that his government had earmarked a total of NZ$100 million ($85.67 million) in aid for a range of sectors in Indonesia over the next five years, with NZ$20 million disbursed each year.

“Of the overall figure, NZ$15 million will go to the energy sector, including geothermal-related activities,” he said.

He added that NZ$7 million would be spent on supporting a renewable energy project conducted by state-owned electricity firm PT PLN on around 1,000 islands and another NZ$3 million on capacity building for human resources in the geothermal sector in partnership with Yogyakarta-based Gadjah Mada University.

New Zealand officials were also in talks with their Indonesian counterparts about bringing breeding cattle to help boost beef output here, Taylor said.

COMMENT :
 I think there's a big hope that New Zealand not only sees Indonesia as a good market target and investment, but open a market for Indonesias product not only in geothermal and energy sector but in generally. Today, Indonesia is 16th on table rank between the biggest economic countries. With over 50 millions citizens with 50 percents young citizens and productive (under 30 years old) shows how big Indonesia's economic potencials.

Today Economic 2

XL officially acquires
Axis

The Jakarta Post, Jakarta | Business | Thu, March 20 2014, 3:05 PM

Telecommunication company XL Axiata has completed its payment to acquire Axis Telekom Indonesia with a US$865 million investment. 
The deal was made after XL and Saudi Telecom Company (STC), previously the major shareholders in Axis, signed the transaction document. 
Kompas.com reported on Thursday that the acquisition transaction signing was conducted at XL headquarters in Menara Prima, Kuningan, South Jakarta. 
XL's acquisition of Axis Telekom Indonesia makes it the major shareholder in the company. 
XL received a $500 million loan from its holding firm, Axiata of Malaysia, and the rest was from three other banking institutions, which were UOB, the Bank of Tokyo Mitsubishi and DBS.

XL Axiata president director and CEO Hasnul Suhaimi said his team would finish a series of processes to finalize the acquisition and merger in line with the existing regulations.

"XL efforts in acquiring and merging with Axis will support and produce a healthy telecommunication industry and create significant multiple effects for the nation's economy," Hasnul said in a release to KompasTekno.

XL announced its plan to acquire Axis in September 2013. The first regulator who gave the green light to the company was the Communications and Information Ministry in December last year.

XL then received approval from its shareholders, the Financial Services Authority (OJK), the Indonesia Stock Exchange (BEI), the Investment Coordinating Board (BKPM) and the Business Competition Supervisory Commission (KPPU) on March 10 this year.  (nfo)

COMMENT : 

Anne Karina Sekar 

Depends on the rules, if there are two cellular operator companies are acquiring, both frequency is based on the governments. Eventhough both companies has it owns principil, it doesn't guarantee that the process of acquiry has been done. Still, they have to qualify the regulations of acquiry company.

Today Economic 1

RI’s logistics still
behind peers: WB

Nadya Natahadibrata, The Jakarta Post, Jakarta | Headlines | Thu, March 20 2014, 8:33 AM

Indonesia’s competitiveness is suffering because, despite improvements, its logistics performance still lags behind its Southeast Asian neighbors, a World Bank survey has revealed.

Indonesia came in 53rd this year among 166 countries surveyed in the bank’s latest Logistics Performance Index (LPI) released on Wednesday Jakarta time.

The ranking was an increase from 59th in the previous index two years ago.

By comparison, Vietnam, Thailand, Malaysia and Singapore were ranked 48th, 35th, 25th and fifth, respectively, in the survey, which was conducted between October and December last year and involved about 1,000 respondents in international logistics firms in 143 countries.

Components in the survey included customs; transportation infrastructure; ease of arranging shipments; quality of logistics services; tracking and tracing; and timeliness.

The World Bank said trade powerhouses in developing countries like Indonesia saw seamless and sustainable logistics as an engine of growth and of integration into global value chains.

Although Indonesia had set up a connectivity program, the concept remained intuitive and often loosely defined, it said.

Indonesian Logistics Association (ALI) chairman Zaldy Masita said it was easy for neighboring countries in the region to outrank Indonesia as it had failed to improve in the logistics sector.

“[Therefore] it remains a challenge for us ahead of the [2015] ASEAN Economic Community,” he said on Wednesday.

Zaldy has previously said several key policies on infrastructure were likely to further harm the logistics sector rather than develop it.

For example, he said the US$2.5 billion Kalibaru Port project in Tanjung Priok, North Jakarta, would further increase road congestion, leading to higher logistics costs, because the project was not matched by improvements in land transportation infrastructure.

“We will see doubled outflows once Kalibaru Port is operational. Meanwhile, roads are already heavily congested with the current flow of goods from Tanjung Priok,” Zaldy said, adding that the government’s plan to construct a railway from Bekasi, east of Jakarta, to Tanjung Priok remained unrealized.

According to Zaldy, logistics services are at their best when based on railway transportation, which currently accounts for less than 1 percent of the country’s total transportation share.

He said that the country’s logistics sector could look forward in the near future to the Trans-Java double-track railway system connecting the capital city to Surabaya, East Java.

The railway is scheduled to begin operations next month.

“The double-track railway system will help reduce logistics costs by 20 percent, but it should be supported by proper loading and unloading facilities at stations,” Zaldy said.

Separately, Transportation Ministry director general for sea transportation Bobby Mamahit said it would take time for the industry to fully reap the fruits of the government’s infrastructure projects.

“We are still developing ports including those in Tanjung Priok, Kalibaru, Belawan [North Sumatra] and Makassar [South Sulawesi],”
he said.

“I believe that by the end of 2015 we can significantly improve our logistics performance, and compete with other ASEAN countries when those ports and their supporting infrastructure are ready.”

Business consulting firm Frost & Sullivan analysts say that Indonesia’s logistics industry is expected to grow by 14.7 percent to Rp 1,82 quadrillion ($160 billion) in transactions this year on the back of growth in the services sector and a surge in consumer spending.

Frost & Sullivan vice president for transportation and logistics in the Asia-Pacific Gopal R. said on Tuesday that growth in gross domestic product (GDP) and purchasing power were among the key indicators of increased trade volume and value, which would favor freight distribution in the country.

He said that the capacity for the transportation of freight by road in Indonesia was only constrained by road congestion near ports.

COMMENT : 

Anne Karina Sekar

In my opinion, the government should have to pay more attentions for supporting infrastructure. As it said there are the customs; transportation infrastructure; ease of arranging shipments; quality of logistics services; tracking and tracing; and timeliness. The regulations in our customs should have to clearly supportive, numbers of curroptions in our country should be recovered, too. And we as a good nations of Indonesia, wehave to support the governments programs so we could increasing our quality in economics and increasing the rank based on World Bank survey.

My Personal Description

Hi!
My name is Anne Karina Sekar, you can call me Anne :)
I'm 21 years old. I was born on May 23, 1992. 
I live in Cilegon, Banten. But since I was being a college student, i live in a dorm in Margonda Raya, Depok. 
Actually, since I was in highschool my motivations for college is International Relations because of some reasons. I'd love to communications and learn a lot of new experiences. When i was a highschooler in 2008, i was in Pasukan Pengibar Bendera Pusaka (PASKIBRAKA) in Istana Negara and sent to Japan for DUTA BELIA in 2008, and JENESYS Programme in 2009.
I'd love to make a relations from new people I met. Takayanagi Kako was my house fam when I was in Japan for JENESYS Programme. Since 2009 until today, we still keep in touch by BBM :)
But then, actually I choose Economic Faculty of University of Gunadarma because it was my alternative choice. I could'nt make my goals for International Relations in University of Indonesia, and become a college student in UG was actually my father's suggestions. 
Here, in this University I have met new people, from strangers become best friends, a friend become a lover, from knowing nothing until know something. I've learned everything good which is now become a part of my life. I love what I do. Then I learned, God gives what I need, not what I want.
Why I choose Management Department is simply because I want become a leader and manager in my own company. In a last 2 year, I've made my own online shop, named #10ThRockstore. Selling rockband t-shirt, anime, football and movie character t-shirt. I use my Twitter account and Blackberry Messenger group for online catalogue and contact person. 

My hobbies are reading, singing and watching movie. Beside lecture, I was in Paguyuban Duta Wisata Kota Cilegon and Paguyuban Kang Nong Banten. I was winning the competition as the first winner Duta Wisata Kota Cilegon in 2009, and 2nd Runner Up Nong Banten 2011. 
My resolutions for 2014 is graduation and looking forward for a chance in my carrier. 
Hope my personal description was good enough for you, thank you for reading! :)