Indonesia not to ask for IMF Aid
Indonesia will not take loans offered by the International Monetary Fund to deal with the impact of the current global financial crisis, State Minister for National Development Planning Paskah Suzetta said to ANTARA News here on Thursday (13/11). “We will not use the IMF program because the problem of overcoming the crisis is not on the balance of payment but on maintaining budget deficit,” he said. He said the country’s debt ratio was still below 30 percent and therefore the government would not increase its debts. The IMF earlier offered to give loans to developing countries including Indonesia five times higher than their earlier loans for three months. The IMF and the World Bank have also expressed commitment to giving a standby loan of US$5 million to Indonesia. (November 13th 2008, Antara News)
Aus PM Kevin Rudd Pledges $67m for Indonesia Disaster Centre
Australia will spend $67 million over the next five years to establish a joint disaster coordination centre in Indonesia.Prime Minister Kevin Rudd and Indonesian President Susilo Yudhoyono made the announcement on the sidelines of the APEC leader’s forum in Peru this morning. A lot of work at APEC is done outside the official program as the 21 leaders use the opportunity for bilateral talks. The announcement of the centre was expected, as Mr. Rudd pledged to work with Indonesia on disaster relief when he traveled to the tsunami-ravaged area of Aceh in June. The $67 million from Australia will fully fund the centre. Mr. Rudd says it will improve the capacity of the region to plan for disasters and recover from them. “This will take some time to develop, it will take some time to properly integrate across the Asia Pacific region, but we believe it’s the right course of action rather than simply to wait until the next major natural disaster hits,” he said. (November 22nd 2008, ABC News)
Indonesia to Plant 100 Million Trees This Year
Indonesia, which has been losing forests at a rapid pace in recent years, plans to plant 100 million trees across the country this year in an effort to limit deforestation, a forestry official said on Wednesday (19/11). Indonesia has lost an estimated 70 percent of its original frontier forest, but it still has a total forest area of more than 225 million acres (91 million hectares), with a host of exotic plants and animals waiting to be discovered. The richest forests are found in Borneo - the world’s third-largest island shared among Indonesia, Malaysia and Brunei - which is home to about 2,000 types of trees, more than 350 species of birds and 210 mammal species. The United Nations Food and Agriculture Organization (FAO) said in a report that Indonesia was suffering the fastest forest loss in the world at almost 1.9 million hectares per year. In 2007, Indonesia succeeded in planting more than 100 million trees, surpassing its planting target of 79 million, said forestry ministry spokesman Masyhud. (November 20th 2008, Reuters)
Indonesian Rupiah Tumbles to 10-year Low
The Indonesian rupiah tumbled against the US dollar on Thursday (20/11) as capital outflow and year-end demand for the greenback increased, dealers said. The rupiah ended at 12,425 against the dollar, down from 12,150 previously and the lowest level since September 1998. “The tumbling rupiah was caused by quite a bit of capital outflow from Indonesia,” David Chang from UOB Kay Hian told AFP. He said that many investors saw slowing economic outlook for Indonesia in 2009 compared to 2008. “We have no choice. A big reason for the weakening rupiah is the drop in income from exports. Commodity prices, such as for palm oil, have dropped tremendously.” Chang, however, added that the currency was not likely to reach 15,000 against the dollar soon as overall economic fundamentals were stronger when compared to the circumstances of the 1990s financial crisis. Demand for dollars from local corporations grew because they needed to pay offshore debts by the end of the year, currency dealers said. A currency dealer at a major foreign bank said he expected the dollar to be supported at 12,350 rupiah Friday and believed that the 12,500 rupiah resistance will remain intact. However, that resistance could be broken if US markets weaken overnight, the dealer said. (November 20th 2008, Antara News)
France, Netherlands to Inspect Indonesia Airliners
Inspectors from France and the Netherlands will soon come to Indonesia to check the safety standard of Indonesian airliners, Indonesian transport minister Jjusman Syafii Djamal said Thursday (20/11). Indonesian leading airline Garuda seeks opening routes to the two countries in cooperation with its counterparts in the two countries. “In the near future, they will conduct inspections in Indonesia, in terms of safety,” Djamal told a press conference at the Indonesia Defense Expo at the Halim Perdana Kusuma air force base. The minister said that the country’s airliners, which have been banned by the European Union, had achieved some progress on their safety. “Actually, the Indonesian airliners now have complied with the international safety standard,” he said. The European Union banned 51 Indonesian airliners in July 2007, after an air accident that claimed more than 300 lives. (November 20th 2008, Xinhua )
Asia Pacific Airlines Discuss Aviation Safety in Bali
The Association of Asia Pacific Airlines (AAPA) is holding an Asia Pacific Aviation Safety Seminar 2008 (APASS 2008) at Jimbaran, Bali, from Nov. 20 to 21 to discuss latest developments in aviation safety. Some 150 participants from 17 airlines in Asian and Pacific countries are taking part in the seminar hosted by Garuda Indonesia, according to Garuda President Director Emirsyah Satar here on Thursday (20/11). The seminar’s participants also include aircraft manufacturers, suppliers, aviation safety experts and academics. The two-day seminar titled “Asia Pacific Aviation Safety” is part of ongoing efforts of AAPA members to continuously improve aviation safety in Asia Pacific. The seminar was important because it would discuss the most crucial aspect of aviation, namely safety, said Satar. Garuda, as the national flag carrier of Indonesia, was obliged to help the government develop and improve the safety aspect of aviation in Indonesia, he said. The Garuda Indonesia chief hoped that domestic airlines would compete in improving aviation safety. During the seminar, which was officially opened by AAPA Director General Andrew Herdman, the participants were expected to exchange ideas and discuss the important fundamentals and application of aviation safety best practices, in-service experience and lessons-learned with leading aviation safety experts from within and outside the region. (November 20th 2008, Antara News)
Anger at Tagging Plan to Fight HIV in Indonesia
People with HIV in Papua, Indonesia, who are deemed to be “sexually aggressive”, may be micro-chipped to enable the authorities to identify, track and punish those who deliberately infect others under a plan which has the backing of the provincial parliament. Human rights campaigners and support groups yesterday condemned the plan as an intrusion into privacy as well as being unworkable. It would further stigmatize those with HIV and push the epidemic underground, they said. The detail of the scheme has not yet been worked out, but if it gets the vote of the majority in Papua’s parliament, it will be enacted next month, said an MP, John Manangsang. Anybody found guilty of deliberately infecting another person would be liable to a six-month jail sentence or a fine of about £3,300. Indonesia has one of the fastest growing HIV rates in Asia, but Papua, the poorest and easternmost province, has been worst hit, with almost 61 infections per 100,000 people - 15 times the national average. “The health situation is extraordinary, so we have to take extraordinary action,” said an MP, Weynand Watari. Nancy Fee, country coordinator for UNAids, said she had “grave concerns” about the effect it might have on human rights and public health. (November 25th 2008, The Gaurdian)
Bali to Host Int’l Martial Arts Championship
A total of 15 countries have been registered to take part in a martial arts championship scheduled in the tourist resort island of Bali on December 18-24, 2008. PB IPSI General Chairman Prabowo Subiakto has previously stated that the world championship could be held if attended by participants from at least 20 countries. He said that PB IPSI was optimistic that the championship could be held while it was now waiting for the participation of another five countries. He said that the venue of the event will be at the Ngurah Rai Sports Hall in Denpasar. The sports hall is located near residential areas so that it would be easier for people to witness the event, he said. (November 17th 2008, Antara News)
Bali Earns US$2.5 Million from Painting Exports
Bali exported as many as 750,000 paintings in various types and sizes in the January-September period in 2008 earning some US$ 2.5 million in foreign exchange from the activity, according to a report released by the province’s industry and trade office. The cited figures meant the province’s fine arts business had grown by 62% compared to a corresponding period in 2007 when it earned only US$ 1.5 million from painting exports. With the gain, it was expected local artists, young ones in particular, would be motivated to improve their creative works and increase their welfare at the same time.Made Sunarta, a young painter from Ubud, said he hoped Bali’s security conditions would remain good and stable so that local and foreign collectors would feel safe to come to Bali to hunt paintings. He said Bali’s artist community now realized the vital importance of good security conditions because they were also severely affected by the downturn in tourist arrivals following the terror bomb attacks on their island a few years ago. Bali artists now welcomed the increasing number of visiting tourists that was expected to have a positive effect on the sale of various art works including paintings, he said.(November 17th 2008, Antara News)
Indonesia Gets Tough with Foreign Drug Companies
Foreign drug companies can quit Indonesia if they do not like new rules requiring them to have local production facilities, Health Minister Siti Fadilah Supari said Monday (24/11). Rules introduced earlier this month are designed to encourage foreign companies to transfer technologies to Indonesia and boost investment to create jobs, she said. “If they want to get licenses (to sell their products) they have to invest here also, not just take advantage of the Indonesian market,” Supari was quoted by AFP as telling Dow Jones Newswires. “They can’t just operate like a retailer here, with an office size that’s three meters (yards) by three and make billions of rupiah. That is not fair.” The decree, which has drawn protests from the US Chamber of Commerce, will affect 13 international pharmaceutical companies that currently sell their drugs in Indonesia but do not have production facilities here. The affected companies include Wyeth, Eli Lilly and Merck Sharp & Dohme Corp. of the United States, Switzerland’s Roche, France’s Servier, Denmark’s Novo Nordisk, AstraZeneca of Britain and Astellas Pharma of Japan. Under the new rules, foreign companies have a two-year grace period in which to set up production facilities. The president and chief executive of the US Chamber of Commerce, Thomas J. Donohue, last week sent a letter to President Susilo Bambang Yudhoyono, urging the president to “consider revising the decree.” (November 24th 2008, Antara news)