Defense Ministry, graft body ink deal

The Jakarta Post, Jakarta

The Defense Ministry agreed Thursday to work with the Corruption Eradication Commission (KPK) on corruption investigations, particularly those relating to the procurement of defense equipment.

"The signing of the (memorandum of understanding) is active proof that we are serious about supporting the government's policy to wipe out corruption in order to achieve clean and good governance," Defense Minister Juwono Sudarsono said at the MOU signing at the Defense Ministry.

Juwono said the main elements of good governance were transparency and accountability, especially in equipment procurement.

"We need to straighten up accounts in the Defense Ministry," he said.

He said his ministry must serve the public, which means that it must be transparent and apply good governance.

"Corruption is not just a crime, but an extraordinary crime. We shouldn't see corruption as a case, but a problem," said KPK chairman Taufiequrrahman Ruki.

"Corruption destroys a nation's morality, taints the justice system and also disturbs the country's development because it is no longer mass-oriented," Ruki added.

With the signing of the agreement, the ministry will coordinate with the anticorruption body to share information and data related to procurement.

Ruki added that the military should also be allowed to have representatives at the anticorruption body.

"During this time, the military is only allowed to work in 10 state institutions, including the Defense Ministry. We want to struggle for the revision of the law to let them be able to work in the anticorruption body to help investigate military-related cases," Ruki said.

"We also expect to get support in terms of training or using their facilities," he added. (rff)

12 small entrepreneurs receive Citi Micro awards

The Jakarta Post, Jakarta

Twelve small entrepreneurs from across the country received Citi Micro-Entrepreneurship awards Thursday in recognition of their outstanding business initiative.

Loisa Lies Wally, a betel seller from Papua, won the first prize in the trade category in recognition of her creativity in selling betel, which is rarely traded.

Almost 90 percent of Papuans like to chew betel but most of them prepare the betel themselves. Loisa manages to sell around 700 packs of betel daily.

"The award has encouraged me to ask more people to get involved in the same business," Loisa told reporters after receiving the award.

Stanislaus Anwar from Magelang, Central Java, and Halimah from Tangerang, Banten, came second and third, respectively, in the trade category.

In the foodstuffs category, Sulastri, took first prize with her innovative snacks made from banana stalks. Agus Supriyanto and Wismawati, both also snacks producers, came second and third in the foodstuffs category.

Suratinah from Magelang, Chandra Nanda from Bengkulu and Hoiri from Lampung came first, second and third, respectively, in the crafts category, while Endang Kusumawati from Parigi Mautong, South East Sulawesi, Sunarno from Lampung, Sumatra, and Syahlul Munaf from Batusangkar, West Sumatra, came first, second and third, respectively, in the services category.

Each winner received a prize of Rp 11 million (US$ 1.220), while the second and third-placed runners-up each took home Rp 9 million and Rp 7 million, respectively.

Director of the University of Indonesia's Small and Medium Business Center, Nining I Susilo, said the committee this year put more focus on how these small entrepreneurs influenced their surroundings.

"We concentrated on how far these small business people could develop and maintain their social responsibility toward others in their surroundings," Nining said during the awards ceremony.

Ditta Amahorseya, senior vice president country corporate affairs at Citi Indonesia, said the winners were now expected to inspire others to develop their businesses in cooperation with microcredit institutions.

According to Ditta, the Citi group has sponsored the competition to the tune of US$170,000 over the last three years.

The awards were first presented in 2005.

This year's winners were selected from among 763 participants throughout the country based on detailed interviews and long-term monitoring conducted by a special team comprising representatives from the University of Indonesia, media and financial institutions. (dic)

Govt moves ahead with 'bonds-for-cash' swaps

Urip Hudiono, The Jakarta Post, Jakarta

Oil-rich regions will be able to choose from a variety of bonds that the central government will offer them in exchange for up to Rp 13.9 trillion (US$1.5 billion) out of the windfall revenues that accrue to them as their share of national oil and gas revenue next year.

The "cash-for-bonds" deal is part of the central government's efforts to mitigate the consequences of a worst-case scenario under which oil prices average $100 a barrel throughout the whole of next year, which could push up budgetary spending by Rp 54.7 trillion.

This figure includes more payouts from national oil and gas revenues to the producing regions -- like Riau and East Kalimantan -- apart altogether from additional subsidy spending on oil-based fuels.

"We will offer the bonds according to each region's specific cash-flow needs," the Finance Ministry's director general for debt management, Rahmat Waluyanto, said Wednesday.

"They could be short-term bills or long-term bonds, tradeable or non-tradeable ones."

The ministry might particularly suggest that the regions take up bonds from the secondary market, Rahmat said, should they prefer bonds, which are more easily tradeable.

"The plan is that the regions will purchase the bonds through private placements based on market-pricing mechanisms," he said.

On Tuesday, Finance Minister Sri Mulyani Indrawati said the government had prepared a package of measures for next year aimed at saving up to Rp 54.7 trillion to help it anticipate a worst-case scenario resulting from high oil prices.

The bonds-for-cash program for oil-producing regions is one of those measures.

On possible objections from the regions, Rahmat said that his officials would work with the ministry's Regional Financial Balance Office to inform the regions and negotiate with them.

"How much money will be exchanged for bonds will depend on the negotiations, while still adhering to the usual revenue-sharing formula," he said.

"Many regions let their funds sit idle, anyway, parking them in short-term investment instruments, like central bank bills, before putting to use."

Under the plan, the regions would still obtain such advantages as capital gains based on the option of tradable bonds, and more predictable interest earnings if they choose longer-term bonds.

The swap plan is expected to slightly increase the government's net bond sales next year.

The government plans to raise Rp 91.6 trillion in net bond sales to finance the 2008 budget, up from Rp 58.5 trillion under this year's revised budget.

Under the worst-case scenario, oil-and-gas related revenue payouts to the regions next year may come to Rp 41.2 trillion, compared to the expected Rp 23.6 trillion.

Overall, while the government's action plan is almost enough to cover the Rp 54.7 trillion in additional oil-related spending, the additional revenues only come to Rp 52.8 trillion, pushing next year's deficit up slightly to Rp 75.9 trillion, or 1.8 percent of GDP.

Britain is second biggest investor in RI After Japan

London (ANTARA News) - Britain is the second biggest investor in Indonesia after Japan but many British businessmen have complained about lack of information on new investment opportunities, Indonesia`s chief investment official said.

"Britain is one of the important countries for Indonesia as its business players have remained the second biggest investor in Indonesia since 1967," chairman of the Capital Investment Coordination Board (BKPM), Muhammad Lutfi, said here on Wednesday.

Lutfi was here to promote investment opportunities in Indonesia among British business people at a business luncheon held by the Indonesian Embassy and the BKPM Representative Office in The British capital.

He said he had previously held similar meetings with French and Belgian businessmen and would do the same with Japanese investors in Tokyo, Japan, later.

The sectors in which British businessmen were operating in Indonesia included technology, coal mining and palm oil production, he said.

He admited that although the BKPM had a representative office in London many British businessmen he had met had complained about a lack of promotion on investment opportunities in Indonesia, especially those opened under the country`s new investment law.

British businessmen had also raised questions about the manpower law, overlapping regulations and the consistency of certain laws.

About overall investment growth in Indonesia, Lutfi said it had been significant, namely 176 percent from US19 billion to US$35 billion.

Hopefully, he added, with the new investment law and the government`s strong commitment, Indonesia would draw more investors and even be able to compete with such countries as Thailand, Malaysia and Vietnam.

In order to better serve prospective investors` interests, the government would soon set up a one-gate service system for them and also provide them with other facilities and certain incentives, Lutfi said.

Indonesia central bank plans new instrument next year

Jakarta (ANTARA News) - Indonesia's central bank plans to introduce a new monetary policy instrument next year, a newly appointed deputy governor of Bank Indonesia told reporters on Thursday.

Budi Mulya said the central bank will use the reference interest rate, known as the BI rate , as the benchmark for the overnight rate instead of the one-month rate currently.

"Regarding the benchmark, the policy rate for one month will be changed to the overnight rate. Therefore the central bank will monitor the development in the interbank money market," Mulya was quoted by Reuters as saying after a ceremony to mark his installment.

"We are also considering adding the SBI (Bank Indonesia certificates) tenor with 6-, 9- and possibly 12-months," he said, adding that an announcement would be made at a bankers' dinner in January.

Mulya did not elaborate on the reason for the changes.

Bank Indonesia introduced the BI rate in July, 2005, when the central bank emphasised the focus of its monetary policy to control inflation.

58 firms to get tax incentives

The Jakarta Post, Jakarta

In a bid to further promote new investment and business expansion, the government has agreed to provide special tax incentives to 58 companies.

"We have already approved the applications for tax facilities, and these approvals have been sent to the Investment Coordinating Board (BKPM) and to each of the companies," said the Finance Ministry's director general of taxes, Darmin Nasution, in Jakarta as quoted by Antara on Monday.

Darmin said the tax facilities had been extended to the 50 companies under Government Regulation No. 1/2007.

Under this regulation, a company can write off 30 percent of the total cost of an investment against tax. In order to secure this incentive, they have to apply to the Investment Coordinating Board (BKPM).

"So, if the total investment is Rp 100 billion, a company can deduct 30 percent of the total, or Rp 30 billion, from its net corporate income," he said, adding that this would be spread out over the number of years the company needed to fully realize its investment.

"If the investment period is six years, then the company can deduct Rp 5 billion from its taxable income every year for six years.

Aside from the tax allowance, the regulation also allows certain companies to accelerate amortization to a maximum of 10 years, and offers reduced income tax of 10 percent on dividends paid to non-resident taxpayers.

Darmin did not name the companies, but said that notifications of the extending of the facilities would soon be sent to the tax offices within whose regions the companies were located.

"What the companies have to do now is visit the tax offices in whose areas they are located, and the designated tax officials will give effect to this facility," Darmin said.

For other companies that want the same treatment, he said, they should apply to the BKPM which will examine whether they are eligible.

The government is prioritizing 15 business sectors: food, textiles, pulp and paper, rubber, steel products, electrical generators, electronics and telematics, raw iron and steel, non-iron metal manufacturing, machineries and components, land transportation, shipbuilding, industrial chemicals and other chemicals.

Indonesian Chamber of Commerce and Industry (Kadin) chairman Mohammad Hidayat hailed the tax service's approvals, saying that it was not before time.

He also asked the tax service to increase the number of categories of companies eligible for tax allowances. "Incentives should also be given to those operating in remote areas, to business sectors that are labor intensive and to those that promote the use of local materials," he said.

Hidayat said that Kadin would soon meet with the government to discuss the sectors eligible for incentives in greater detail.

RI climbs one rung on development index

The Jakarta Post, Jakarta

Indonesia has raised its Human Development Index (HDI) ranking through improvements in a number of key sectors, the United Nations Development Programme (UNDP) announced Tuesday.

The Human Development Report for 2007/2008, Fighting Climate Change: Human Solidarity in a Divided World ranks Indonesia 107th out of 177 countries, with its overall index rising from 0.711 to 0.728 this year.

"The HDI report looks back at a measure of health, education and income ... the standard of living among 177 countries and Indonesia is number 107 this year, one step further than last year," Hakan Bjorkman, UNDP country director for Indonesia, said.

"The change is related to other countries which are improving more. But, slowly, slowly, Indonesia is improving in these areas, but maybe not fast enough," he told The Jakarta Post upon the launch of the Human Development Report.

"The improvement is not as fast as in Vietnam, but Cambodia and Myanmar are much slower than Indonesia," he added.

In the key sectors of life expectancy at birth and gross domestic product per capita, Indonesia rose respectively from 67.2 to 69.7 and from US$3,609 to $3,843.

This year, the UNDP especially focused its report on climate change issues in the lead-up to the global climate change conference in Bali in December.

"Since 1990 we have published the annual Human Development Report, but this year's report differs from last year's in that it is not from a narrow economic point of view, but from the climate change point of view," said Bjorkman.

"This report is a good reference for climate change issues." he added.

"The impact will be serious on the poor countries. If we don't do the right things right now, climate change will sabotage the Millennium Development (Goals)," said Bjorkman.

Bjorkman also said that most of the climate change has been caused by carbon emissions in developed countries over the past hundred years.

"As a good example of global solidarity between rich and poor countries, it's a big responsibility for rich countries to support the countries that are most affected, which are the poor countries, in terms of mitigating, fighting climate change or transplanting technology," Bjorkman said.

Indonesia should also be able to rely on international support. At a Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) in 2001, governments established some funding mechanisms, including the Special Climate Change Fund to support adaptation activities and to improve monitoring of diseases, early warning systems and responses, disaster planning and preparedness for droughts and floods. (rff)

Government Prepares Nine Steps in Anticipation of Oil Price Increase

Wednesday, 28 November, 2007 | 13:01 WIB

TEMPO Interactive, Jakarta: The government is preparing nine security steps in anticipating a potential additional 2008 State Budget deficit.

These steps are being taken in relation to continuing oil price increases.

Finance Minister Sri Mulyani guaranteed that the steps will not disturb the funds allocated for infrastructure and the poverty eradication programs.

“They’re still pro-growth and pro-poor, maintaining economic growth momentum with a constant budget,” she said during a press conference at her office last night (27/11).

If oil prices reach US$100 per barrel, Sri Mulyani explained, the potential additional deficit would be Rp54.7 trillion.

“That is if the government doesn’t do anything,” she said.

The potential deficit has been triggered by external factors, the oil price increases that contribute a Rp14.4 trillion deficit.

There are also internal factors, including additional fuel oil subsidies and electric sales growth, contributing Rp38.1 trillion.

The first securing step, said Sri Mulyani, was the use of the State Budget reserve fund amounting to Rp6 trillion, which can be used when base assumptions are changed.

The second, a saving of Rp11.7 trillion in the natural absorption of state expenditure, comprising savings of 10 percent of goods expenditure by Rp6.9 trillion and five percent capital expenditure by Rp4.8 trillion.

The third, using excess funds from oil and gas-producing regions amounting to Rp13.9 trillion.

The surplus from regional revenues will be placed in risk-free instruments.

"State bonds will be issued,” said Sri Mulyani.

The fourth, sharpening priority expenditure budgets of ministries and state institutions by Rp10.4 trillion.

The fifth, improving production parameters in terms of fuel oil and electricity subsidies.

The sixth step is efficiency by Pertamina and PLN (the State Electricity Company).

The seventh, optimizing taxes and dividends of state-owned enterprises, amounting to Rp9 trillion.

Eighth, relaxing the 2008 State Budget deficit.

The final step is maintaining momentum in terms of economic growth and macro-economy stability.

After the press conference, economist Chatib Basri said he considered that with these anticipatory steps, there need not be concern as regards any lowering of public purchasing power due to the oil price increases.

This is because, “Growth and inflation are sustained,” he explained.

HARUN MAHBUB

Taman Rama School gets Cambridge Awards

Denpasar (Jakarta Post) : The University of Cambridge International Examinations department (CIE) has given Taman Rama School, in Bali, a Cambridge International Fellowship status, making it the first school in the country to receive such recognition.

The school offers the Cambridge International Primary Program, the International General Certificate of Secondary Education and Advance level (A Level) study programs.

"We are very proud to receive such a prestigious status and we are committed to improving our education services," said Made Sutama, the school's principal.

He was accompanied by James Bird, director of studies at the Cambridge International Fellowship Center and Michael McBrien, director of studies for the Cambridge International Primary Program. CIE is the examinations department of the University of Cambridge in London, the United Kingdom. JP

Telkomsel launches mobile wallet

JAKARTA (The Jakarta Post): Indonesia's largest cellular provider PT Telkomsel Selular (Telkomsel) on Tuesday launched the first mobile wallet facility in the country, called T-Cash.

President director Kiskenda Suriahardja said in a ceremony the facility could be used by T-Cash subscribers whether they were Telkomsel customers or not, as an exchange tool to purchase goods or pay for services at selected merchants by sending an SMS to 2828 or showing a T-Cash card.

"We have invested some Rp 50 billion (US$53.30 million) in the establishment of the T-Cash facility," Kiskenda added.

He said T-Cash was the extension of his company's mobile banking program which offered banking services such as money transfers, deposit checks, bill payments and changes to personal identity numbers (PIN) via a banking menu on a cellular phone.(JP/nkn)

Information ministry gets ready to become ICT hub

The Jakarta Post, Jakarta

The Communications and Information Ministry says it should drive any attempts to establish an information and communication technology (ICT) culture in Indonesia.

"The culture of information and communication technology should be started from the ministry itself," said Communications and Information Minister Muhammad Nuh during the opening of the ministry's three-day national coordination meeting on Monday.

The main purpose of the meeting is to establish a new policy for the ministry in its efforts to accelerate the national ICT development program in 2008.

The national program itself is aimed at developing a prosperous, civilized and knowledge-based information society that is synergic and integrated nationally.

Nuh said that in order to be a reliable hub for the program, there were three things the ministry should do.

"First, improve the quality of human and other resources. Second, enhance the value system, including good governance and innovation, that can support its tasks," he said.

"Third, eliminate all performance burdens, including incapable human resources."

The minister also emphasized the need to provide concrete suggestions for revamping regulations related to foreign or joint businesses in the ICT sector.

"Any improvement must embrace both economic and political views," he said.

He also said that 2008 was an important year because it would mark the beginning of preparations for the 2009 presidential election.

"The Communications and Information Ministry will hold a big responsibility in making the election successful."

Another speaker at the meeting, Dr. Made Suwandi from the Home Ministry, explained the importance of information and communication technology in the implementation of the central government's decentralization program.

"The role of information and communication technology is very important for Indonesia's administration reform efforts, and finally for its economic development," he said.

"Progress in structural reform, both bureaucratic and institutional, is needed for improving the investment climate in Indonesia.

"More specifically, information and communication technology development is also needed for encouraging the development of small and medium enterprises, reforming the financial sector, and also for making a success of the national poverty reduction program."

Another speaker, Alex Bambang Riatmodjo from the Coordinating Ministry for Political, Legal and Security Affairs, said ICT had an important role to play in maintaining national security and defense, especially counterterrorism efforts. (uwi)

Businesses seek role in environmental policy-making

Andi Haswidi, The Jakarta Post, Jakarta

As the government prepares to unveil its National Action Plan (RAN), a road map to guide the effort against global warming, the Indonesian Chamber of Commerce and Industry (Kadin) has called for a say.

Chairman Mohammad Hidayat said Monday that Kadin had appointed a team of 15 industrial leaders to participate in drawing up the plan, which is to be made public in the upcoming United Nations Framework Convention on Climate Change (UNFCCC) conference in Bali next week.

The RAN plan will consist of a set of guidelines to help Indonesia mitigate and adapt to climate change.

According to the Environment Ministry, which is responsible for it, the plan incorporates the country's triple-track development strategy of pro-poor, pro-job and pro-growth, but adds another dimension: pro-environment.

The plan encompasses preservation of forests and carbon capture, aiming to reduce CO2 emissions by up to 30 percent by 2025.

However, for fear of having its interests neglected -- especially on issues of energy efficiency, spatial planning and tax incentives -- the Kadin team wants to be a part of the sustainable development coordination process, contributing ideas and suggestions.

"We need a comprehensive approach towards sustainable development that takes into account both environmental issues and the interest of industry," Hidayat said in a discussion with the Environment Ministry on Monday.

Hidayat said the effort to create balance between the environment and industrial growth had been marred by disputes and a lack of coordination between government agencies.

Regulatory ambiguity and discrepancies -- for example between central and regional government levels, he said, discouraged many companies from shifting to renewable sources of energy for production.

Also speaking at the discussion, Indonesian Employers Association (Apindo) chairman Sofyan Wanandi urged the government to create a comprehensive policy on the use of energy and how it will shape the future of industry.

"The government's approach in addressing the energy issue has always been ad hoc and tends to look for scapegoats if there are problems,"

"Having learned from past experience, even if we have a good plan, implementation is always an issue. I'm honestly skeptical about the action plan, especially on the implementation level," Sofyan said.

On the issue of spatial planning, Franky Wijaya, the CEO of Sinar Mas Agribusiness and Food, one of the major players in the palm oil industry, said the government must discuss land allocation matters, both with industry players and NGOs, in order to get an objective view on all related issues.

"For our industry, it is important to get a hold of exact spatial planning -- which areas are allocated for preserved forest and which are for production, to avoid disputes."

Similarly, at the UNFCCC negotiations in Bali, 180 country representatives will map out a plan for climate change mitigation and adaptation, ahead of the expiry of the Kyoto framework -- the first CO2 reduction arrangement -- in 2012.

Oil subsidy to soar to Rp87 T : minister

Jakarta (ANTARA News) - Energy and Mineral Resources Minister Purnomo Yusgiantoro said oil subsidy in the 2007 state budget is likely to soar to Rp87 trillion from Rp55 trillion previously because of the global oil price spiral.

Electricity subsidy would also increase to Rp42 trillion from Rp34 trillion, the minister said following a limited cabinet meeting at the presidential palace here on Friday.

Yet, the higher-than-expected subsidy would not lead to an increase in the 2007 state budget deficit which had been projected at 1.5 percent as the higher subsidy figure could still be offset by an increase in state revenues from the oil and gas sector, he said.

"We see it (subsidy hike) as being quite secure at the end of this year because there is still balance between the increase in revenues and that in spending. The deficit in the state budget will remain unchanged," he said.

He said oil output until the end of 2007 would stand at 910,000 barrels per day, or lower than the government-set target of 950,000 bpd.

"So, the oil output will reach 95 percent of the target. But the price of our crude oil is 118 percent above target. So, our oil revenues will still be higher than expected," he said.

Experts set up public policy think tank

JAKARTA (Jakarta Post): Experts announced Friday the new Indonesian Society of Public Policy, a non-government think tank, will recommend public policy improvements to the government.

A number of noted people are involved: Jakarta Governor Fauzi Bowo, Regional Representatives Council Speaker Ginanjar Kartasasmita, former Gadjah Mada University rector Sofian Effendi, legislator Drajad Wibowo, University of Indonesia public policy expert Eko Prasodjo, expert on policy reform Riant Nugroho, former Indonesian Military chief of territorial affairs Lt. Gen. (ret) Agus Widjojo and Gorontalo Governor Fadel Muhammad.

Organization chairman Sofian Effendy said there were plans to establish branch offices nationwide to assist policymakers at the local level.

"We'll soon give our recommendation to the government on how they can improve their bottom-up public policies," Sofian told The Jakarta Post.

The new organization will be officially launched next year in April. --JP/dic

Govt to establish innovation agency to help SMEs

The Jakarta Post, Jakarta

The government will establish a national agency aimed at strengthening and improving the competitiveness of small and medium enterprises (SMEs) through better access to information and the development of innovative technology, an official said Wednesday.

The agency, to be called the small and medium enterprise innovation center (PI UMKM), would work together with academia and business associations to develop innovative technology especially designed to strengthen SMEs, said Edy Putra Irawadi, the deputy for industry and trade at the Office of the Coordinating Minister for the Economy, on Wednesday.

The agency, whose establishment will be based on a recent presidential instruction, will be launched early next year after six months of preparations, said Edy, who chairs the preparatory committee laying the groundwork for the agency's establishment.

The committee consists of representatives from 15 ministries, the Agency for the Assessment and Application of Technology (BPPT), the Central Statistics Agency, the Indonesian Institute of Sciences (LIPI), entrepreneurial associations and universities.

Edy said that the agency would furnish assistance and information to SMEs on technical matters, intellectual property rights and marketing, and help them forge links with various communities, such as the leather association in Yogyakarta, textile association in Bandung, West Java, and research centers in the universities.

Dharmawan, the deputy chief of technology policy assessment at the BPPT and a member of the team, said that "The agency will also offer incentives to inventors of innovative technology."

Eddy said that the preparatory committee had started its work in July and had been allocated around Rp 1.4 billion (US$150,000) to disseminate information on the plan and establish a relationship with SMEs, government agencies, private institutions and universities.

"I think our budget for next year will be more or less the same," he said.

SMEs made up 90 percent of the country's 48.9 million business enterprises in 2006. They accounted for 53 percent of the country's gross domestic product of Rp 3,338 trillion and employed 96 percent of the approximately 88 million workers in employment that year, according to data from the Cooperatives and SMEs Ministry. (ind)

Middle class prefer information to soaps, says survey

The Jakarta Post, Jakarta

Although soap operas remain the most popular TV programs in Indonesia, most middle-income and educated households prefer news and other informative programs, such as talk shows and showbiz news, a survey reveals.

The results of the TV audience and viewing survey, which was conducted in 10 major Indonesian cities by AGB Nielsen Media Research Indonesia in July-September, also shows that, like their parents, only a small percentage of children from middle-income homes are partial to soaps, or sinetron as they are known here.

According to the survey, the households with a monthly income of more than Rp 3 million (about US$315) also preferred to watch soccer matches, musical programs like the Ungu-Nidji Superband Duet, Western children's movies like Harry Potter, and comedy shows, such as Extravaganza.

"Those who are highly educated, such as those who have attended university or equivalent institutions, also tend to watch informative shows, whereas those who are less educated prefer entertainment offerings, such as variety, reality and game shows," AGB Nielsen marketing communications executive Andini Wijendaru told a media briefing Thursday.

She said that other types of musical programs, such as Indonesian Idol and Mamamia, were favored by the upper-income brackets, in addition to Western movies and TV series, and sports tournaments, like the Asia Cup.

In terms of length of time spent viewing, housewives were found to spend the most time per day watching TV, with an average of 3 hours and 12 minutes, 59 minutes of which was spent watching soap operas and the remainder on religion-themed shows.

Other viewers would spend an average of between 2.4 hours and 2.9 hours a day watching a variety of shows, depending on their age segment, educational level, profession and socio-economic background.

"The kind of TV shows people watch depends on their demographic backgrounds, and this is confirmed by our survey," said Hellen Katherina, AGB Nielsen's associate director for marketing and client service.

The AGB Nielsen 2007 third-quarter survey essentially highlights the correlation between a viewer's socioeconomic status and his TV viewing preferences, particularly during prime time.

It reveals that 72.07 percent of soap operas' total viewership comes from households with monthly incomes of less than Rp 1,500,000 (about US$159.63).

"People with a monthly income of below Rp 500,000 spend the most time watching TV, whereas those who make more than Rp 3 million spend the least. The report shows that 74.77 percent of total TV viewership is made up of lower-middle income households," Andini added.

AGB Nielsen, which has been conducting audience surveys for TV networks and advertisers in Indonesia since 2004, carried out the July-September survey by stratified random sampling covering 42 million individuals in 10 major Indonesian cities, including Greater Jakarta, Bandung in West Java, Medan in North Sumatra, Makassar in South Sulawesi and Denpasar in Bali. (amr)

Income tax receipts from oil and gas expected to increase Rp5 T

Jakarta (ANTARA News) - Indonesia`s income tax receipts from the oil and gas sector are expected to increase by Rp4-5 trillion this year due to the current global oil price spiral, a tax official said.

"If I am not mistaken this year`s income tax receipts from oil and gas will increase by Rp4-5 trillion from the target set in the revised 2007 state budget," Director General of Taxation Darmin Nasution said here Friday.

But this would not be as high as an increase in non-tax state revenues from the oil and gas sector, he said.

He stopped short of revealing by how much the non-tax state revenues would increase. It was the director general of budgetary affairs who knew it well, he said.

If combined with an increase in other revenues, such as from crude palm oil, the increase in income tax receipts from the oil and gas sector would be higher than a rise in fuel and electricity subsidy borne by the government, he said.

"Although fuel and electricity subsidy goes up because of global oil price spiral, the rise in oil and gas revenues still will be slightly higher than the subsidy hike," he said.

Indonesian workers are better than Japanese, in some ways, says survey

The Jakarta Post, Jakarta

Indonesian employees have a high understanding of what they need to do in order to make their companies successful in achieving targets, but they have a low commitment to helping them succeed, according to a survey.

The survey, by consultancy firm Watson Wyatt Worldwide, shows that Indonesian employees scored 78 percent in the "line of sight" category, which is defined as their knowledge of what to do in order to make the company successful, but only 53 percent in their commitment to doing so.

The combination of these two factors gives Indonesian workers an "employee engagement" score of 64 percent, similar to those for their counterparts in Hong Kong (68 percent), China (67 percent) and Australia (65 percent).

The Indonesian employees' score was higher than those for their counterparts in Japan (39 percent) and Taiwan (58 percent), according to the survey, which was conducted in 11 countries in the Asia-Pacific region -- Australia, China, India, Indonesia, Japan, Malaysia, the Philippines, Singapore, South Korea, Taiwan and Thailand.

Watson Wyatt Worldwide is one of the world's largest human resource-consulting firms and periodically conducts independent surveys on human resources. It has been operating in Indonesia since 1973.

Managing consultant Lilis Halim explained that the top three drivers of employee engagement in Indonesia were customer focus, communication, and compensation and benefits.

However, "two of these drivers -- communication, and compensation and benefits -- received low-favor ratings," she revealed.

Lilis said that 59 percent of respondents, including staff, managers and professionals, were not satisfied with the compensation and benefits they got, while 57 percent of them were unhappy about the communication situation in their companies.

"That is why the number-one reason for employees to leave their current jobs is better career opportunities, while number two is better compensation and benefits," she said.

On customer focus, Lilis said that this was strong, especially when employees clearly saw how their work helped their customers and believed that the company truly made customer satisfaction a top priority.

Communication, she added, meant ease of two-way communication between employees and employers, and among the employees.

According to the survey, high employee engagement can lead to better financial performance and business success.

"We hope corporate managers can improve the key drivers of employee engagement in order to enhance financial performance," said Lilis.

In Indonesia, the survey involved 370 full-time employees working for organizations that employ at least 250 people. (ind)

All regencies expected to introduce one-stop service late 2008

The Jakarta Post

JAKARTA (Antara): Administrative Reform Minister Taufiq Effendi said Wednesday he wanted all regency administrations in the country to apply a one-stop service system for the public by the end of 2008.

"Previously, only nine regencies applied a one-stop service system and now there are 293 regencies applying it. I hope all regencies will follow suit by the end of 2008. In Central Java, all regencies are already applying it," he said.

The one-stop service system assists the public with applications for identity cards, building construction permits and business permits, he said.

The minister asked regency administrations that had not yet implemented the system to conduct a comparative study in regencies where a one-stop service already existed.

"I ask you to visit regencies that have successfully implemented it," he told 72 participants of a national executive development training program.

Antimonopoly body rules against Temasek

JAKARTA (Jakarta Post): Temasek Holdings was found guilty by the KPPU on Monday of cross- ownership in the domestic mobile telecommunications industry, a move that led to an abuse of dominant powers in the marketplace and a monopoly.

The Singapore-owned company would now be forced to either let go of all indirect shares in PT Telekomunikasi Selular (Telkomsel), or in PT Indosat, and to pay a fine of Rp 25 billion for breaching the anti-monopoly law, the Business Competition Supervisory Commission (KPPU) said.

"We hereby order Temasek and its business group to let go of all shares in either Telkomsel or Indosat, no more than two years (after) this decision takes effect," head of the KPPU's panel of judges Syamsul Maarif said.

The divested shares, Syamsul said, must not exceed five percent for each buyer. (Andi Haswidi)

RI more ready to implement ASEAN Economic Community

Singapore, Nov 19 (ANTARA) - Trade Minister Mari Elka Pangestu believed Indonesia has the potential soon to join the ASEAN Economic Community (AEC) which was projected to materialize by 2015, in line with the formation of the ASEAN Charter.

"Indonesia is ready, and it may even be sooner than expected," Mari Elka Pangestu said on the sidelines of the 13th ASEAN Summit in Singapore on Monday.

The summit held on November 18 and 19, 2007 concurrently with ASEAN`s 40th founding anniversary, is almost certain to declare an ASEAN Charter covering three pillars of cooperation, namely the ASEAN Economic Community, ASEAN Security Community and the ASEAN Socio-Cultural Community.

On Tuesday (Nov 20) ASEAN economic ministers was to draw up an AEC blueprint as an integrated regional trade center comparable to the European Union.

The blueprint covers four priorities within the AEC framework, namely free flow of goods and services, competitive economic region, equitable ecconomic development, and preparation to a global economy.

"The blueprint reflects readiness, the measures to be traken, and schedule of formation of AEC in 2008, up to its implementation by 2015.

Mari said that the ASEAN member countries will meet once in every six months to identify various problems facing them, not only four countries, i.e. Vietnam, Cambodia, Laos, and Myanmar, which appeared not to be ready enough, but also six others which appeared to be ready, namely Indonesia, Singapore, Malaysia, Thailand, Vietnam, and Brunai Darussalam.

"Indonesia along with the five other countries is ready to implement the AEC in 2015, while the other four were given time between 2018 and 2020," he said.

The AEC blueprint covers at least 12 sectors of priority to integrate in the EAC, namely the agro-industry, aviation services, automotive industry, E-ASEAN, elektroniks, fisheries, medical equipment/instruments, rubber products, textile and garments, tourism, wooden products, and logistical services.

Nevertheless, Mari said, Indonesia must continue making new breakthroughs to meet the target by improving the various systems, especially in the service sector.

"There is not much worry about the production of goods, in view of their competitiveness. But the service sector needs to be encouraged by policies which may increase capacities and professionalism yang dapat meningkatkan kapasitas dan the profesional skills of personnel, like those at hospitals, in tourism, and in technology industries," she said.

Indonesia, Mari added, has eight years to prepare various things in facing the AEC in 2015, and therefore needs to implement a total and comprehensive reform program in stages, improve the investment climate and shorten red tape, and promote efficiency programs.

One example is that the regional grouping will publish an ASEAN Single Window in 2008, although since 2006 Indonesia has already been implementing a National Single Window in improving the traffic of goods integrated at customs and excise facilities for higher efficiency.

Banking credits expected to grow at 24 pct this year

Jakarta (ANTARA News) - Director of Banking Management and Research Affairs of Bank Indonesia (BI), Halim Alamsyah, said the central bank had estimated banking credits in 2007 would grow by 24 percent.

"Up to the third week of October 2007, the growth of banking credits had reached 23.95 percent driven by consumption credit expansion," he said on the sidelines of a seminar on financial stability research at Bank Indonesia`s office building here on Monday.

The central bank has set the lending growth target at 22 percent in 2007.

He said consumption credits had increased due to expansion of lending on credit cards.

Credit growth was also driven by increasing demand for credits in the investment and working capital sectors at the end of 2007.

"There is credit expansion for investment and for working capital," he said.

In the first ten months of 2007, BI recorded that the amount of new credit provision by banks had reached Rp168 trillion, exceeding this year`s target at Rp150 trillion.

"This has exceeded the target," Halim said.

Therefore, when asked on the credit growth next year, Halim said it could achieve a range between 24 percent and 25 percent.

Report: Climate change could reverse decades of economic, social progress in Asia

The Jakarta Post

BANGKOK (AP): Worsening weather and higher sea levelscaused by climate change could reverse decades of social and economic progress across Asia and the Pacific, according to a report released Monday by a coalition of environmental and humanitarian groups.

The report, "Up In Smoke? Asia and the Pacific," warns that communities across the region are already feeling the effects of climate change and face a dire future unless the international community acts at next month's climate change meetings in Bali, Indonesia, to control rising greenhouse gases.

"Before the Bali meeting, we must make our voices heard and demand international leaders take urgent and ambitious action while placing climate change at the heart of their plans," Saleem Huq, head of climate change for the London-based International Institute for Environment and Development, said in a statement.

"Without this, Asia's vulnerable will continue to suffer, as will communities worldwide who are contributing least to climate change but continuing to suffer the most," he said.

The report by 35 private organizations, including the humanitarian group Oxfam and environmental group Greenpeace, comes two days after the Intergovernmental Panel on Climate Change warned that global warming is "unequivocal" and carbon dioxide already in the atmosphere commits the world to an eventual rise in sea levels of up to 1.40 meters.

The IPCC report found that warming temperatures could result in 75 million to 250 million people in Africa suffering water shortages by 2020 and residents of Asia's large cities facing a greater risk of river and coastal flooding.

Earlier in the year, the IPCC reported that 130 million people in Asia could suffer severe food and water shortages by 2050 unless international action is urgently taken.

The Up In Smoke report paints a portrait of communities already struggling to adapt to changing weather patterns. Droughts are on the rise in China and India while Bangladesh has been hit by worsening floods and natural disasters, including Tropical CycloneSidr which killed more than 1,800 people Thursday.

Pacific island villages have been forced to relocate because of rising sea levels while melting glaciers have contributed to a decline in runoff to countries that depend on them for drinking water and irrigation.

The report calls for richer countries to commit to make mandatory cuts in greenhouse gases and do more to provide green technologies to the developing world.

It also calls for more financial resources to help communities cope with global warming. Disaster preparedness should also be better funded and organized, the report said.

"The ongoing erratic weather conditions experienced the world over mean a daily struggle for the millions of poor people who rely on the land and sea for their survival," Oxfam International's Bert Maerten said in a statement. "Oxfam wants to see governments taking both mitigation and adaptation efforts seriously now and in the future."

Governor to empower subdistrict offices

The Jakarta Post, Jakarta

Governor Fauzi Bowo said Sunday he would consider working at the 267 subdistrict administration offices spread around the city.

"I wouldn't hesitate to receive a guest in subdistrict offices because they're government offices too," he said during a visit to Pisangan Timur subdistrict office in East Jakarta.

He said it would allow him to be closer to the city's residents and help improve the performance of the offices.

During the meeting with residents, some asked Fauzi to promise to improve community unit facilities and increase the Family Welfare Education (PKK) budget.

"I'm asking for the governor's promise to pay attention to our operational budget," said a woman who is a member of the PKK.

Fauzi said he was concerned with the issues but could not make any promise that would realize all of their requests.

"I thank you all for delivering your requests. However, I can't promise that I will fulfill all of them, especially for those who asked for money," he said.

The governor said he would not provide more facilities to community unit offices as they belonged to the residents, not the city.

"If the city administration provides too many facilities for a community unit, I'm afraid it will suffer the same bureaucratic disease.

"On the other hand, if a neighborhood unit and a community unit can be responsible in using their operational budgets, I might reconsider increasing the budgets," he said.

"I can make a contract-based package between a subdistrict office and a neighborhood unit. A neighborhood unit will have its rights, but it must fulfill its duties -- otherwise it will be sanctioned," added Fauzi.

On Friday, Fauzi assessed the work performance of each unit in the city administration, in accordance with the 100-day work program.

He asked every unit head to sign a performance agreement that will be used to evaluate the performance of each unit.

"There will be a sanction for a unit head whose work quality is below the performance agreement.

"The performance agreement signing will push the city administration's work in five years, in accordance with good governance," he said, as quoted by the city administration's official Web site Berita Jakarta.

Commenting on ongoing infrastructure projects in the city, Fauzi said the construction of the three new busway corridors was going according to the city administration's plan.

"The building of East Flood Canal is important to mitigate possible annual flooding, however, it is a bit delayed.

"We need to coordinate with the National Land Agency about the land acquisition and land compensation," he said. (adt)

RI to allocate Rp100 bln for women`s cooperatives in 2008

Jakarta (ANTARA News) - Indonesian Cooperatives and Small-Medium Scale Business Minister Suryadharma Ali has said that the government would allocate Rp100 billion for women`s cooperatives, or an increase of 400 percent.

"We have set a target of providing funds to 1,000 cooperatives for women to strengthen the women`s program of healthy and prosperous families," the minister said here on Friday.

In 2007, the ministry allocated a fund amounting to Rp25 billion for 250 cooperatives.

The ministry also planned to continue the Program of Productive Cooperatives and Micro Business (P3KUM) next year.

"We plan to have 6,100 P3KUMs in 6,100 subdistricts throughout Indonesia next year," the minister said.

The ministry intended to give more attention to the development of cooperatives in Islamic boarding schools.

Palm oil industry needs to be revamped: Observers

The Jakarta Post, Jakarta

The so-called "partnership" between companies and farmers in the palm oil business needs to be reconsidered because it benefits big corporations, not farmers, say observers.

Nursuhud, a member of the House of Representatives' Commission IX overseeing social welfare, labor and transmigration affairs said the partnerships, established in 1977, were not equitable.

"The companies, as the core, possess the ability to control everything, like deciding how much of which crops will be accepted and also the criteria," he said Friday during a discussion on the welfare of Indonesian palm oil farmers.

"Farmers are always placed in a marginal position. The farmers are never involved in any attempts to reshape the paradigm."

Indonesia has some 7.2 million hectares of oil palm plantations producing some 16 million tons of crude palm oil. Indonesia controls nearly 36 percent of the world's CPO market, second only to Malaysia with 47 percent.

However, observers say there is still no system to integrate farmers into the industry, as equals of companies.

Suprapto, an oil palm farmer in Peser regency, East Kalimantan, who has been involved in the business for more than 20 years, said that during the harvest farmers often experienced losses because factories could not accommodate the entire crop.

"The price is quite good, but the problem is that we cannot sell all of our crops," he said.

Abetnego Tarigan of the group Oil Palm Watch said companies did not have a substantial interest in buying crops from farmers because most have their own plantations.

"They treat the farmers only as buffers to anticipate times when their plantations do not produce enough," he said.

He said the current system allowed companies to monopolize the industry because they controlled everything from transportation to manufacturing.

Director of plantation protection at the Agriculture Ministry, Hendrajat N, said to improve the welfare of palm oil farmers, the government would launch a program in 2008 to revitalize oil palm plantations.

The program will include the replanting of old plantations and the provision of soft loans so farmers can own at least four hectares of land.

"The revitalization program will also require (oil palm) companies to buy up to 20 percent of the company's needs from farmers," he said.

"The program also aims to develop a sustainable, environmentally safe, oil palm industry." (uwi)

President asks researchers to come up with better food technology

The Jakarta Post, Jakarta

President Susilo Bambang Yudhoyono told the agriculture minister and governors to challenge researchers and other Indonesians to compete for a substantial cash prize to develop formulas for the production of noodles made from local materials.

"Please develop noodles that are made of local -- instead of imported -- materials. We have cassavas, sweet potatoes, corn and other staple foods," he said before presenting the 2007 National Food Security awards at the State Palace in Jakarta on Thursday.

"Noodles have the potential to replace rice," Yudhoyono was quoted as saying by Detik.com newsportal, saying the official competition to modify noodles would begin early in 2008.

Currently noodles in Indonesia are made of imported wheat flour.

The awards were given to the governors of East Java, Jambi, Riau, South Sumatra, South Sulawesi and Yogyakarta, as well as to 11 regents, a mayor, 108 farmers groups and 30 farming officials.

At a separate event scientists announced they had found a cheaper substitute for the raw material of the ubiquitous Indonesian tempe, a protein-rich cake made from soybeans, which Indonesia currently imports from the United States.

"Indonesia and Australia have been successful in making tempe from lupin, a kind of bean that grows in Australia," said program leader of the Food Science and Technology School of Public Health at the Curtin University of Technology in Australia, Prof. Vijay Jayasena.

"The cost of the lupin bean is less than half the cost of imported American soybeans," he said at a seminar at the Australian Embassy on the development of food science and technology in Indonesia.

The joint research on lupin-based tempe was a cooperative effort between Curtin University and the Indonesian Institute of Sciences (LIPI).

Director of LIPI's chemical research center, LB Sugeng Kardono, said lupin beans couldn't grow properly in Indonesia.

"We tried to grow them at LIPI, but the plants were always beanless," he said.

Lupin is the common name for members of the genus Lupinus in the legume family (Fabaceae). There are more than 200 species of lupin.

Australia is the largest lupin producer at more than 984,000 tons a year, accounting for the lion's share of the world's annual production of some 1.15 million tons.

Vijay and Kardono also presented other recent developments in the field of food science and technology, introducing several food processing technologies to an audience of biology and chemistry students.

Vijay described a variety of methods, including high pressure processing, irradiation, extrusion, intelligent packaging using time and temperature indicators, active packaging, micro capsulation and ozone treatment, all of which are commonly used in other countries.

Kardono said the methods hadn't been implemented in Indonesia because they were costly.

"These methods do not necessarily need a costly high-tech investment, just local instruments and the willingness to think outside the box," Vijay said.

He cited the example of an extrusion machine developed by researchers and the Asian Institute of Technology in Thailand. They were able to build the machine for one-tenth of the usual cost of US$180,000 for an imported machine.

Kardono added that LIPI was currently focusing on creating food that has an added health value, like vitamin-enriched food and curries that can fight cholesterol. (lva)