Boediono kicks-off national meeting with regional heads

Bagus BT Saragih, The Jakarta Post, Jakarta | Thu, 01/19/2012 1:37 PM

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Vice President Boediono kicked-off a 2012 national meeting on Thursday, with an emphasis on economic issues, ranging from poverty eradication to local economic development.

The one-day meeting, which was held at the Jakarta International Expo in Central Jakarta’s Kemayoran, was attended by all Cabinet ministers, as well as hundreds of governors, regents and mayors from across the country.

“First of all, I would like to say that after following the news lately, our economy performance in the early 2012 is quiet good. Both macro and micro indicators are good even though not everyone is satisfied with that,” Boediono said in his opening speech before the meeting.

“However, we have to be thankful, given [the fact that we are in the middle of] an unstable global economy.”

The Vice President highlighted five key issues that needed to be discussed during the meeting: socio-political stability, food security, job creation, state administrative management and poverty eradication.

He said food security, “particularly [in] rice stocks, is a determining issue.”

Boediono also said the government and local administrations had to “continuously monitor” efforts in job creation because they were the key to surviving 2012 “without serious problems”.

Meanwhile in poverty eradication efforts, “all relevant economic ministers will help us address this issue,” he said.

President Susilo Bambang Yudhoyono is scheduled to deliver his remarks later at 4 p.m. (mtq)

Boediono kicks-off national meeting with regional heads

Bagus BT Saragih, The Jakarta Post, Jakarta | Thu, 01/19/2012 1:37 PM

A | A | A |

Vice President Boediono kicked-off a 2012 national meeting on Thursday, with an emphasis on economic issues, ranging from poverty eradication to local economic development.

The one-day meeting, which was held at the Jakarta International Expo in Central Jakarta’s Kemayoran, was attended by all Cabinet ministers, as well as hundreds of governors, regents and mayors from across the country.

“First of all, I would like to say that after following the news lately, our economy performance in the early 2012 is quiet good. Both macro and micro indicators are good even though not everyone is satisfied with that,” Boediono said in his opening speech before the meeting.

“However, we have to be thankful, given [the fact that we are in the middle of] an unstable global economy.”

The Vice President highlighted five key issues that needed to be discussed during the meeting: socio-political stability, food security, job creation, state administrative management and poverty eradication.

He said food security, “particularly [in] rice stocks, is a determining issue.”

Boediono also said the government and local administrations had to “continuously monitor” efforts in job creation because they were the key to surviving 2012 “without serious problems”.

Meanwhile in poverty eradication efforts, “all relevant economic ministers will help us address this issue,” he said.

President Susilo Bambang Yudhoyono is scheduled to deliver his remarks later at 4 p.m. (mtq)

INSPIRATIVE THINKING

Some one who don't know what will they do must be confuse what action to do.We always press our self to get more what we want, but we don't plan it systematically. Everyone must has inspirative thinking before to do action. For instance we want take a bus to work, and the time almost late. Before do that we should ask to our selves what the first thing to do. Go after the bus with bike, motorcycle or with car. So we choice motorcycle to get the bus. Because it's efficient and the run is faster.The wrong thinking of course result wrong act, and the wrong act does not reach the target.So check out the term and options to do before you take the action.
Hope your days always beautiful and barokah. By Mustopa

Analysis: Euro downgrades: Stay with domestic plays

Harry Su, Bahana Securities | Thu, 01/19/2012 10:23 AM

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S&P’s recent debt rating cuts in nine European countries (exhibit 1) will mean that the low consensus forecast of the euro to the US dollar (USD) of 1.2 (exhibit 2) could occur sooner rather than later in our view. 

We note that commodity prices generally have the propensity to follow the performance of the USD — for example, oil is 86 percent correlated to the USD (exhibit 3). Thus, expectations of a stronger USD will mean weaker commodity prices. 

That said, the recent weakness in the Indonesian rupiah (IDR) against the dollar is likely to remain at least in the short term, although we believe Moody’s rating upgrade to investment grade will help shore up a confidence in the local currency. While the IDR has only depreciated by 0.7 percent year-to-date (ytd), we note that since Aug. 1, 2011, after reaching IDR8,464/US$1, the IDR has depreciated by more than 7 percent to current levels, making it one of the weakest performing currencies in Asia.

That said, IDR weakness, based on our study, does not bode well for earnings of listed companies. Our sensitivity analysis shows that every 1 percent IDR weakness will lead to 0.6 percent lower profit growth for the Indonesian stock market as a whole. 

Additionally, we note that a stronger dollar will mean greater imported inflation for Indonesia, adding inflationary pressure ahead of April’s 10 percent average electricity tariff hike and the government’s move to limit subsidized oil. Hence, we applaud the central bank’s move to maintain its benchmark rate given the propensity of the USD to strengthen coupled with higher inflation stemming from administered price hikes. 

Despite these challenges, Indonesia’s domestic economy is displaying resilience from the adverse impact of the European debt crisis. Consumer confidence remains high, retail sales have been robust and credit is continuing to expand strongly with November’s 2011 loan growth reaching 25.4 percent y-y and 21.2 percent ytd. 

Indonesia is one of the most well-insulated, domestically driven economies in the region, making it relatively immune from external shocks. Hence, we expect 2012 GDP to expand 6.4 percent y-y, making it one of the best performing economies in Asia.

This means that the Indonesian stock market remains as one of the most attractive globally for investors. However, at this stage of the cycle, we caution investors that while in a weak IDR operating environment dollar earners in general have the tendency to benefit from currency gains, exporters’ earnings could be wiped out by lower commodity prices, which would come off in line with stronger dollar.

 Hence, we retain our preference for domestic plays as top picks. We like companies that benefit from the trickle-down effects of rising direct investments, substantially higher minimum wage increases and the land clearing law. 

The writer is senior vice president and head of research at PT Bahana Securities.

http://www.thejakartapost.com/news/2012/01/19/analysis-euro-downgrades-stay-with-domestic-plays.html

$8.5b projects prepared to support gas supply

Rangga D. Fadillah, The Jakarta Post, Jakarta | Thu, 01/19/2012 10:20 AM

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To boost the utilization of natural gas for domestic purposes, the government has prepared nine gas infrastructure projects with a total investment value of Rp 77.93 trillion US$8.5 billion.

The projects, which are included in the work plan of downstream oil and gas regulator BPH Migas, are estimated to be completed in six years, says BPH Migas committee member A. Qoyum Tjandranegara.

“Gas exports have long caused severe losses for the country. We export a cheap energy source while we import the expensive one [oil-based fuel] in exchange,” he told House of Representatives Commission VII in Jakarta on Wednesday.

Indonesia’s gas is exported to China and Korea for $3.88 per million British thermal unit (mmbtu), while the country’s industries have found difficulty in accessing the gas although they were willing to pay up to $7 per mmbtu, he continued.

Upstream oil and gas regulator BPMigas’s cites the 2011 natural gas supply contract as saying that 4,366 mmscfd, or 56.78 percent of the total sales of 7,688 mmscfd, would go to the domestic market with the remaining 43.22 percent, or about 3,322 mmscfd, earmarked for exports.

In 2010, the gas sold in the domestic market totaled 4,342.7 mmscfd, which was about 50.18 percent of the total sales of 8,654.29 mmscfd.

Qoyum said boosting the utilization of gas for domestic purposes was even tougher because the government did not provide subsidy for gas. Many other countries, except developed countries, provide a gas subsidy.

“The utilization of gas in the transportation sector has also declined. In 1984, we had 18 gas stations, now there are only 12,” he reported.

“If you ask the government why the gas isn’t utilized for domestic purposes, the answer is normative: Because the country lacks the infrastructure [to store and transport the gas],” he added.

In a bid to solve that problem, the government has introduced the nine projects. The projects are the Natuna-West Java pipeline, which can transport 1,200 million standard cubic feet per day (mmscfd) of gas; the East Kalimantan-East Java pipeline, which has a capacity of 900 mmscfd; the Cirebon-Semarang pipeline, whose capacity is 400 mmscfd; the South Sumatera-West Java (SSWJ) I and II compressor expansion with capacity 1,100 mmscfd; and Train 3 at the Tangguh liquefied natural gas (LNG) plant in Papua with a capacity of 534 mmscfd.

The remaining four projects are the floating storage and re-gasification unit (FSRU) in Belawan, North Sumatera; FSRU in Jakarta Bay, West Java; FSRU in Central Java; and compressed natural gas (CNG) trucks, mother and daughter stations.

There are also four additional projects: The Semarang-Surabaya pipeline, the SSWJ III pipeline, an LNG plant in Maluku and an LNG plant in Sulawesi. However, BPH Migas’s data does not reveal the investment value of those projects.

Indonesia’s gas users have called on the government to increase gas supply for them.

http://www.thejakartapost.com/news/2012/01/19/85b-projects-prepared-support-gas-supply.html

Google 7 years behind Japan’s NTT Docomo in Mobile Wallet services

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A few weeks ago, Google announced that it will introduce Google Wallet, a way to pay for goods using just your mobile phone, this summer. This application uses Near Field Communication (NFC) technology so that users can pay just by waving their phones in front of a reader at a checkout.

NTT DOCOMO Osaifu Keitai Illustration

It has been reported that the program will initially be launched in New York and San Francisco before being extended more widely across the US. Google wrote on their blog that:

Because Google Wallet is a mobile app, it will do more than a regular wallet ever could. You’ll be able to store your credit cards, offers, loyalty cards and gift cards, but without the bulk. When you tap to pay, your phone will also automatically redeem offers and earn loyalty points for you. Someday, even things like boarding passes, tickets, ID and keys could be stored in Google Wallet.

As someone used to seeing this technology at work day in day out here in Japan, I find it interesting to see Google lagging behind Japan’s NTT DoCoMo by a solid 7 years in this path.
NTT DoCoMo launched the Osaifu Keitai (Wallet Mobile), which is  based on Sony’s FeliCa card,  in July 2004.  It supports both proximity payments in shops that have a FeliCa chip reader and remote (online) payments.
Apart from electronic money, other services of the Osaifu Keitai include identity card, loyalty card, fare collection of public transport (railways, buses, and airplanes), credit card etc.
The CGAP blog post of 2009 reported that as of January 2006, there were over 10 million subscribers of Osaifu-Keitai with compatible handsets.  As of 2008, there were more than 29 million subscribers (NTT DoCoMo 2008). The mobile wallet application was accepted at more than 640,000 stores (Contactless News 2008)
.http://nthambazale.com/2011/07/google-7-years-behind-japans-ntt-docomo-in-mobile-wallet-services/