Sugar Market Operation Tomorrow Friday clerics in Three Points

In response to rising sugar prices, the Office of Trade and Industry in East Java with the eight major distributors spread sugar market operations, Friday (28 / 8) in the three markets, namely markets Bendul Merisi, PUCANG Market, and Market Rejo Pond. With the expected market operations, the price of sugar stabilized

Head of Domestic Trade Department of Industry and Trade of East Java, Arifin T Hariadi said, at every operating point the sugar market will be supplied approximately 3.5 tons to 5 tons. The distributor agreed to throw the price of sugar at the end of the level of consumer (end user) Rp 7,500 per kilogram, said Arifin, Wednesday (26 / 8) after the coordination meeting with the businessmen of sugar in Surabaya.

Benchmark price of sugar Rp 7,500 per kilogram at the market operation is much cheaper than the tender price of sugar during the sugar factory with a distributor, which is USD 8371 per kilogram. In fact, the price of sugar in the market rate has now reached the level of Rp 9500 per kg to Rp 9700 per kg.

Assistant II, Economic and Regional Development Secretariat of East Java Djaelani Chairul said, with operations expected to market the cheaper the price of sugar because the sugar distribution chain trimmed.

We cannot do something like rice price increases. Therefore, we would urge the sugar distributors to apply a minimum price with a minimum benefit to society not burdened, he said.

One of the distributors of sugar as well as Chairman of the Indonesian Sugar Association Entrepreneurs (APGI) Pieko Nyotosetiadi states, distributors dare sell sugar more cheaply than the tender price. We do have social programs for the community, especially when the price of sugar rises like this, he said.

To avoid re-sale sugar, Department of Industry and Trade of Java limits the maximum purchase of two kilograms of sugar during the market operation.

Foreign Influence

Company Secretary Company PT Nusantara (PTPN) XI Adig Suwandi said, the increase in domestic sugar prices rising influence of foreign sugar prices. Sugar price increases occurred abroad, including in India and Brazil.

In India, crop failure, initially 26 million tons per year dropped to 16 million tons per year. While in Brazil occurred sugar into ethanol substitution for ethanol prices higher, he said.

According to Adig, sugar production in 2009 is predicted to reach 2.7 million tons. This production will be consumed as approximately 2.6 million tons. But, because the price of sugar on expensive overseas reached U.S. dollars 550 dollars per ton, so much food and drink manufacturers to lower middle initial use of refined sugar turns to a local sugar.

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The government shares oil Assumption 65 U.S. Dollars per Barrel

The government shares oil Assumption 65 U.S. Dollars basic assumption on oil prices next year bigger 5 U.S. dollars per barrel compared to the assumptions proposed in the Draft Budget Revenue and Expenditure (Budget) in 2010. It was made by Vice Chairman of the Budget Committee of the House of Representatives Harry Azhar Azis, Wednesday (26 / 8).

According to Harry, in the 2010 Budget discussion meeting has been agreed that the assumption of world crude oil price set at 65 U.S. dollars per barrel. Thus, the basic assumption of oil prices in 2010 is greater 5 U.S. dollars per barrel compared to the assumptions proposed in the Budget 2010. "Expectations of economic growth next year will grow positively, so the demand increases. Therefore, the assumption set is greater than that proposed," said Harry.

Harry explained, to suppress the impact of rising world oil prices, the House is more agree if the price of oil set at 70 U.S. dollars per barrel. "Because there would be a change in oil prices again next year," he continued.

However, Harry hoped, with the benchmark rate 65 U.S. dollars per barrel in the 2010 Budget, the price of oil next year will not experience significant spikes.

If projections were missed, Harry estimates, assuming oil prices of 65 dollars a barrel will only be maintained at least for six months.

In fact, he added, the impact of world oil price hikes could be reduced if the government's infrastructure development process went well. The reason, it is believed to promote national economic growth.

Unfortunately, Head of Fiscal Policy Anggito Abimanyu met through the meeting in Parliament at all reluctant to give an explanation. "We are still calculating its net impact," he said briefly.

Net impact is to calculate the difference between revenue and expenditure budget of the central government in the oil and gas sector is expected.

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Government legalize Blackberry "Service Center"

Ministry of Communications and Information Technology (Depkominfo) with BRTI (Indonesian Telecommunication Regulation Agency) states finally, to accept in principle the completeness, mechanisms, and procedures that have authorized repair service facility RIM (RIM-Authorized Repair Facility) in Indonesia.

"BRTI plenary meeting at the end states, that in principle BRTI can receive completeness, mechanisms, and procedures owned by RIM-Authorized Repair Facility in Indonesia," said Chief Information Center and Public Relations Administrator, Gatot Dewa Broto, in Jakarta, Wednesday (26 / 8).

It's just that, said Gatot, BRTI ask RIM to make a statement on the seal must be signed by officials representing RIM from Canada and the central office that represents or is responsible and legally authorized for RIM operations in Indonesia.

RIM's request that it provide a number of statements in between RIM has been trying to meet the requirements demanded by BRTI as stated in his letter No. 652/DJPT.5/KOMINFO/VII/2009 dated July 15, 2009 which applies to telecommunications providers and vendors / importers related to the follow-up commitment to service center for RIM BlackBerry.

"We also ask that RIM said it had obtained from the team's visit and BRTI Administrator on August 19, 2009 to see, learn, and conduct assessments freely and directly to the RIM-Authorized Repair Facility in Indonesia," he said.

Billy emphasized, that RIM-Authorized Repair Facility is provided as a full-service center sold as provided in Article 8 paragraph (2) letter (f) of Regulation Minister Kominfo No. Certification 29/PER/M.KOMINFO/8/2008 of Telecommunication Equipment and Tool.

In the rules it states that the petition certification of telecommunication equipment such conditions attached affidavit and the ability to provide warranty-after sales service on the stamp sale, unless the equipment tested was not to be traded.

In addition, RIM is required to affirm that the RIM-Authorized Repair Facility is provided as a full-service center for the sale in Indonesia is a total solution, so that any damage to any level does not need to bring consumers of telecommunications equipment damaged property is out of Indonesia.

"And we also asked RIM to assert that the RIM-Authorized Repair Facility is operational this has started functioning since August 21, 2009," he said.

As for some of RIM's after sales service which is spread in some places has been officially opened to the public for users who purchase telecommunications device via a telecommunications provider that is affiliated with RIM on 26 August 2009.

It asked that the statement was made by addressed to BRTI secara and if there are violations of commitments-commitments above, then the RIM should be willing to risk and legal consequences in accordance with the provisions of the laws and regulations applicable in Indonesia.

According to Billy, the existence of that statement is important, because it can serve as one means of control and BRTI Administrator in the process of supervision if there are things that contradict what he had promised to BRTI.

"And if such an affidavit has been submitted to the Administrator and BRTI, then as quickly RIM will regain their rights to use RIM to immediately apply for certification could be suspended / frozen by the Directorate General of Post and Telecommunications," said Gatot S. Dewa Broto.

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Cost Recovery for Oil and Gas Exploration to Rise

Cost recovery for oil and gas exploration next year is estimated to rise to US$13.01 billion as oil and gas companies try to increase oil production, the Ministry of Finance says.

Cost recovery paid by the government to oil and gas companies this year is set at $11.05 billion, with a best effort of $10.05 billion, as requested by the House of Representatives. The ministry said the increase was aimed at boosting national oil and gas output to meet production targets.

Next year's national crude oil output is set at 965,000 barrel per day, according to the 2010 budget bill, up from the 960,000 barrel per day expected this year.

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Adjustment of Air Transport Agreements between Indonesia and EU

Indonesia and the European Union (EU) are seeking to adjust their air transport agreements following the lifting of an EU flight ban on four Indonesian airlines in mid-July. "I have just received a report on the matter. To be sure, there has been common understanding and perception of civil aviation in the two regions and of harmonization process to increase flight safety," Transportation Minister Jusman Syafii Djamal said here on Thursday.

The EU had invited the Indonesian aviation authorities to a meeting on initial agreement on certain other aspects of air services on August 17, in Brussels, Belgium, he said. Head of the Transportation Ministry’s Public Communication Center Bambang S Ervan said the meeting was a horizontal meeting between Indonesia and the 27-nation bloc.

At the meeting the Indonesian government was represented by Director General of Air Transportation Herry Bakti and the EU by Gilles Gantelet, he said. Bambang said articles in the air transport agreements the two sides adjusted and discussed at the meeting dealt among others with designation by member state, safety, taxation of aviation fuel, and compatibility with competition rules.

"Actually, the matter has been discussed with EU member states. But the discussion came to a standstill following the EU flight ban on the Indonesian airlines. Now that the ban has been lifted they (the EU) invited us to discuss it," he said.

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Must be from the Ministry of Economy The Professional

The entrepreneur hopes that the president and vice president elected on 8 July pilpres selecting economic ministers from the professional to avoid political compromise and political trade cattle.

Chairman of the Indonesian Employers Association (APINDO) Sofyan Wanandi in Jakarta on Friday (10 / 7), say, employers want the economy minister was appointed from among professionals who truly understand and understand the field. "Avoid political compromise and trade cattle," he said.

Sofyan said, if the economic ministers from the professionals will work more quickly and adapt to global changes in a fast and complex. This is very different from the minister that titipan is a political party, they will learn more and adjust the very old with the global changes that are fast, he said.

He hopes the president and the elected representatives must be able to take decisions more quickly and are consistent with the desired employers. "Because we want a decision quickly to avoid uncertainty," he said.

This senada disclosed economic observers, Avilliani, which according to him, economic ministers should be professional and do not compromise from the political parties. In addition, he said, the future must be able to take decisions quickly and can encourage the balance of investment between real and financial sectors.

Sofyan added, there are three things that need to be addressed the future, that is, the problem of infrastructure, regulatory overlap, and bureaucratic reform. "Three things make this a high economic cost, if not be addressed," he said.

According Avilliani, bureaucratic reforms are very important, one to streamline the bureaucracy. For example, re-merging the Department of Trade and Industry into one department. "Do not be away only to accommodate political interests, which helps government departments to be more fat," he said.

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Rupiah to benefit further from elections, economic growth

The rupiah, already among Asia’s best currency performers, may continue to gain against the US dollar due to the largely peaceful recent legislative and presidential elections and as Indonesia's economic prospects continue to weather the storms of the global downturn.

The local currency has gained by 9 percent so far this year and will likely to strengthen more in the second half of the year, with President Susilo Bambang Yudhoyono’s projected victory helping to ensure the sustainability of development programs necessary to boost growth in already Asia’s third-fastest growing economy, say analysts.

“During the elections, there were no riots or conflicts as in Iran or some other countries, which is positive for the market,” currency analyst Farial Anwar said Friday, adding it should bolster investors' confidence in the country’s economy.

The rupiah closed 10,173 Friday against the US dollar.

The country’s economy grew by 4.4 percent in the first quarter from a year earlier, with full-year growth estimated to be over 4 percent.

While it is slower than the 6.1 percent growth booked last year, it is still better than most of its regional peers amid the current global slowdown, trailing only behind China and India.

By comparison, Malaysia, Singapore and Thailand each contracted by at least 6 percent.

Bloomberg, quoting DBS Asset Management, said Indonesia’s rupiah and bonds, offer one of the region’s few “pockets of opportunity” for fixed-income investors in the second half of the year.

“Among currencies, I’m only bullish on the rupiah due to the high yield, the positive political outcome and its economic growth,” Desmond Soon, who helps oversee some US$24 billion of assets as a portfolio manager at DBS Asset in Singapore, told Bloomberg in an interview.

An HSBC index tracking the nation’s local-currency debt is up 13 percent and the yield on the benchmark 10-year bonds has dropped 1.38 percentage points to 10.51 percent. That’s still the best yield on offer in Asia’s 10 biggest economies excluding Japan.

Benchmarks tracking currencies and government bonds in the region posted their biggest quarterly gains since 2004 in the three months through June as signs that a global recession was easing bolstered demand for emerging-market assets.

However, despite the positive outlook, Farial said the local currency would not advance to a level far below 10,000, in part because the authority would need to create a balance between the interest of importers and that of exporters.

“So the movement of the local currency will be somewhat limited, not too far away from Rp 10,000.”

The Jakarta stock index meanwhile declined Friday to close at 2,062.92, although long-term
outlook remains also positive in accordance with improving overall economy, stock analyst Felix Sindhunata said.(The Jakarta Post)

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