"A Summary" – Apr 2, 2011 (Kryon channelled by Lee Carroll) (Subjects: Religion, Shift of Human Consciousness, 2012, Intelligent/Benevolent Design, EU, South America, 5 Currencies, Water Cycle (Heat up, Mini Ice Ace, Oceans, Fish, Earthquakes ..), Middle East, Internet, Israel, Dictators, Palestine, US, Japan (Quake/Tsunami Disasters , People, Society ...), Nuclear Power Revealed, Hydro Power, Geothermal Power, Moon, Financial Institutes (Recession, Realign integrity values ..) , China, North Korea, Global Unity,..... etc.) -

“ … Here is another one. A change in what Human nature will allow for government. "Careful, Kryon, don't talk about politics. You'll get in trouble." I won't get in trouble. I'm going to tell you to watch for leadership that cares about you. "You mean politics is going to change?" It already has. It's beginning. Watch for it. You're going to see a total phase-out of old energy dictatorships eventually. The potential is that you're going to see that before 2013.

They're going to fall over, you know, because the energy of the population will not sustain an old energy leader ..."
"Update on Current Events" – Jul 23, 2011 (Kryon channelled by Lee Carroll) - (Subjects: The Humanization of God, Gaia, Shift of Human Consciousness, 2012, Benevolent Design, Financial Institutes (Recession, System to Change ...), Water Cycle (Heat up, Mini Ice Ace, Oceans, Fish, Earthquakes ..), Nuclear Power Revealed, Geothermal Power, Hydro Power, Drinking Water from Seawater, No need for Oil as Much, Middle East in Peace, Persia/Iran Uprising, Muhammad, Israel, DNA, Two Dictators to fall soon, Africa, China, (Old) Souls, Species to go, Whales to Humans, Global Unity,..... etc.)
(Subjects: Who/What is Kryon ?, Egypt Uprising, Iran/Persia Uprising, Peace in Middle East without Israel actively involved, Muhammad, "Conceptual" Youth Revolution, "Conceptual" Managed Business, Internet, Social Media, News Media, Google, Bankers, Global Unity,..... etc.)

The headquarters of the Corruption Eradication Commission (KPK) in 
Jakarta. (BeritaSatu Photo)
"The Recalibration of Awareness – Apr 20/21, 2012 (Kryon channeled by Lee Carroll) (Subjects: Old Energy, Recalibration Lectures, God / Creator, Religions/Spiritual systems (Catholic Church, Priests/Nun’s, Worship, John Paul Pope, Women in the Church otherwise church will go, Current Pope won’t do it), Middle East, Jews, Governments will change (Internet, Media, Democracies, Dictators, North Korea, Nations voted at once), Integrity (Businesses, Tobacco Companies, Bankers/ Financial Institutes, Pharmaceutical company to collapse), Illuminati (Started in Greece, with Shipping, Financial markets, Stock markets, Pharmaceutical money (fund to build Africa, to develop)), Shift of Human Consciousness, (Old) Souls, Women, Masters to/already come back, Global Unity.... etc.) - (Text version)

… The Shift in Human Nature

You're starting to see integrity change. Awareness recalibrates integrity, and the Human Being who would sit there and take advantage of another Human Being in an old energy would never do it in a new energy. The reason? It will become intuitive, so this is a shift in Human Nature as well, for in the past you have assumed that people take advantage of people first and integrity comes later. That's just ordinary Human nature.

In the past, Human nature expressed within governments worked like this: If you were stronger than the other one, you simply conquered them. If you were strong, it was an invitation to conquer. If you were weak, it was an invitation to be conquered. No one even thought about it. It was the way of things. The bigger you could have your armies, the better they would do when you sent them out to conquer. That's not how you think today. Did you notice?

Any country that thinks this way today will not survive, for humanity has discovered that the world goes far better by putting things together instead of tearing them apart. The new energy puts the weak and strong together in ways that make sense and that have integrity. Take a look at what happened to some of the businesses in this great land (USA). Up to 30 years ago, when you started realizing some of them didn't have integrity, you eliminated them. What happened to the tobacco companies when you realized they were knowingly addicting your children? Today, they still sell their products to less-aware countries, but that will also change.

What did you do a few years ago when you realized that your bankers were actually selling you homes that they knew you couldn't pay for later? They were walking away, smiling greedily, not thinking about the heartbreak that was to follow when a life's dream would be lost. Dear American, you are in a recession. However, this is like when you prune a tree and cut back the branches. When the tree grows back, you've got control and the branches will grow bigger and stronger than they were before, without the greed factor. Then, if you don't like the way it grows back, you'll prune it again! I tell you this because awareness is now in control of big money. It's right before your eyes, what you're doing. But fear often rules. …

Wednesday, April 15, 2009

Indonesia optimistic its economy will grow 4.5 percent

Jakarta (ANTARA News) - Indonesia is optimistic its economy will grow 4.5 percent in 2009 in spite of the impact of the global financial crisis on several of its economic sectors.

Its finance minister Sri Mulyani Indrawati said after a limited cabinet meeting on economy on Monday "our projection remains between 4.0 and 4.5 percent until the end of this year. Indeed international institutes are projecting the country`s economy will only grow 3.0 to 3.4 percent."

She said the country`s economic growth in the first quarter could still reach above 4.0 percent and this was a good beginning to show that the country`s economy remained quite resilient against the negative impact of the global economic crisis.

She said she predicted the country`s economy grew between 4.3 and 4.8 percent in the first quarter on consumption that grew 5.5 percent.

She said household economic growth in the period was predicted to be between 4.3 and 5.0 percent or down from 6.4 percent in the fourth quarter of 2008.

"The consumption growth of between 4.3 and 5.0 percent is still quite high as several parties are predicting that the country`s economy will grow lower than expectations," she said.

The growth of government consumption in the first quarter this year is predicted at between 8.0 and 13.1 percent or higher than that of the same period last year.

The minister said the global financial crisis had affected investment as well as export and import performance as shown by first quarter figures.

Investment is predicted to grow 5.0 to 6.5 percent in the first quarter or lower than the average growth in 2008 that reached double-digit between 10 and 13 percent. "So there has been a correction of more than 50 percent," she said.

Exports in the period contracted between minus 6.0 and minus 9.0 percent or dropped sharply from 13.6 percent in the same period last year.

"In the fourth quarter of 2008 our exports grew almost 1.8 percent so contraction in the first period of 2009 is a declining trend resulting from global economic downturn," she said.

Imports also contracted in the first quarter of 2009 between minus 8.0 percent and minus 12 percent and because the drop was deeper than that of exports the country`s trade balance remained positive at US$607 million until the end of March.

Exports in the first quarter reached US$22.55 billion while imports US$18.578 billion, leaving a surplus of US$3.974 billion.

Saturday, April 11, 2009

Kalla congratulates SBY as coalition hunt begins

The Jakarta Post, JAKARTA | Sat, 04/11/2009 9:59 AM

Delayed democracy: A Polling Station Working Committee (KPPS) member holds up a ballot in a repeat legislative election in Nusukan subdistrict, Surakarta, Central Java, on Friday. The authorities cancelled the elections in Nusukan after realizing the ballots were invalid because they were designated for other regions. (Antara/Andika Betha)

Politicians got back to wheeling and dealing with potential allies Friday as the all-important task of forming coalitions for the presidential election got underway.

Symbolic meetings were abound as major parties assessed their losses and gains from Thursday's elections.

Reeling from a disappointing result, Vice President and Golkar Party chairman Jusuf Kalla effectively conceded his party’s “defeat” by personally congratulating President Susilo Bambang Yudhoyono after Friday prayers on the Democratic Party’s sweep of the polls.

“I was quite surprised,” said Yudhoyono after receiving Kalla’s telephone call.

Always one to put his enthusiasm in check, the President quickly qualified the conversation as a “communication between friends”.

Nevertheless, in the strongest hint yet of a possible reprise of the SBY-JK duo, the President admitted the brief talk was a good start.

When pressed further on the vice presidency, Yudhoyono refused to be specific.

“There is Pak JK, and there are also other candidates,” he remarked, stressing that the focus was now on forming a coalition based on a written agreement.

“The presidential and vice presidential candidate will be an extension of the coalition,” said Yudhoyono.

Based on the results of quick counts, so far only the Democratic Party can single-handedly meet the prerequisite for nominating a presidential candidate, which requires 20 percent of seats in the House of Representatives or 25 percent of all valid votes cast.

Ahead of the election, Kalla had bowed to party pressure by declaring himself ready to run as president. Other suspected major contenders for the presidency are Megawati Soekarnoputri from the Indonesian Democratic Party of Struggle (PDI-P), along with retired generals Prabowo Subianto from Gerindra and Wiranto from Hanura.

As the party leading the polls so far, Yudhoyono was very specific about the “rules based” parameters of the coalition he would like to form.

He said such a contract should be made public so the people themselves can control the workings of government.

He said he was disappointed with the weaknesses of the present coalition and the behavior of certain politicians.

“How can a minister, who is a member of the coalition, attack a government policy?” the President said.

“In any other country he would be [kicked] out!”

Yudhoyono insisted that his party was open to any coalition as long as a mutual commitment, irrespective of ideology, was reached.

“We will especially be looking toward those who have proven they can work effectively together”.

Separately, the Prosperous Justice Party (PKS) refused to commit on the idea of a coalition, with deputy secretary-general Zulkieflimansyah saying the party leadership had not made a decision despite an internal lean toward Yudhoyono’s party.

“Our supporters are inclined toward a coalition with the Democratic Party rather than PDI-P or Golkar,” he said to Antara from Serang, West Java.

A meeting was also held between Megawati and Wiranto, though the latter said their discussion focused on their dissatisfaction with the elections, which he claimed were rife with violations.

Friday, April 10, 2009

Industrial activities pick up in Q1: Officials

Aditya Suharmoko, THE JAKARTA POST, JAKARTA | Fri, 04/10/2009 1:39 PM

Having been falling since the last quarter of 2008, the country's industries - mainly those aimed at the domestic market - have begun to show signs of perking up, indicated by an increase in electrical power consumed in the first quarter this year, compared to a quarter earlier, a ministry official says.

While industry as a whole experienced contraction in the final four months of last year, there were signs of more industrial activity in the following quarter, the first quarter of 2009, said director general of electricity and energy utilization at the Energy and Mineral Resources Ministry, J. Purwono, on Thursday.

"Electrical usage of industries began to increase in the first quarter of 2009 from the fourth quarter of 2008, when industrial activities were sluggish," Purwono said.

"Maybe industries have found new markets," he added.

His statements echoed remarks on Monday by Finance Minister Sri Mulyani Indrawati who said power consumption of industries rose 2.5 percent in the first quarter of 2009 compared to the previous quarter, indicating more activity.

It signaled, she said, that industries have continued producing goods amid the global economic downturn because of higher demand in the domestic market.

The Industry Ministry has said industries may expand between 3.6 percent and 4.6 percent this year. Indonesia's economy may expand as low as 3 percent this year, according to the central bank, as exports and investments slow down.

While the country will not reach economic growth comparable to last year's 6.1 percent, the impact of the global economic slowdown will be cushioned or countered if industries can maintain output, provided that domestic demand, Indonesia's main economic driver, remains robust.

Both Purwono and Mulyani however, warned that a pick up in electricity in the first quarter was not yet significant on its own.

Compared to the electrical usage level of industries in the first quarter of 2008, this year's first quarter use of power by industry was less than that of last year, said Rudiantara, vice president director of the state power company PT PLN, the sole electricity public utility.

"Electrical usage of industries was down double-digits in the first quarter of 2009 compared to the same period a year earlier," he said, without elaborating.

Diesel consumption of industries in the first quarter of 2009 was also lower than that in the same period last year, said Anang Rizkani Noor, spokesman for state oil and gas firm PT Pertamina.

"There has not been a significant rise in diesel consumption," he said.

However, in the first quarter, Indonesia's economy is predicted to have expanded by 4.6 percent, according to the Finance Ministry.

The Central Statistics Agency (BPS) will reveal the official first-quarter growth in May.

SBY's 'integrity' behind Democratic Party's win: Juwono

The Jakarta Post, Jakarta | Fri, 04/10/2009 8:37 AM

Defense Minister Juwono Sudarsono, who is not affiliated to any political party, attributes the Democratic Party's success in the legislative elections to President Susilo Bambang Yudhoyono's "character and integrity."

"The success of the Democratic Party in gaining more than 20 percent of the votes in the legislative elections is a measure of the voters' trust in character and integrity of SBY's personality," Juwono said Friday.

Quick counts by a number of research institutes, including the Indonesian Survey Institute, the Indonesian Survey Circles, LP3ES and the National Survey Institute show that Yudhoyono's Democratic Party gained about 20 percent of the total votes, almost three times of total votes it got in 2004.

Megawati Soekarnoputri's Democratic Party of Struggle (PDI-P) came second with about 15 percent of the votes and Jusuf Kalla's Golkar Party followed closely at the third place with about 14 percent.

Yudhoyono welcomed the quick counts, saying that survey institutes would not risk their integrity by issuing quick counts.

He said that he would start talking to other political parties to build possible coalitions at the House of Representatives for the July 8 presidential elections.

Thursday, April 09, 2009

Indonesia Tops Graft List in Asia, Says Survey

The Jakarta Globe, April 8, 2009

Singapore. Indonesia is perceived as Asia’s most corrupt economy, an annual survey of foreign business executives showed on Wednesday.

According to the survey by the Political and Economic Risk Consultancy, or PERC, Singapore and Hong Kong remained the region’s least corrupt economies.

Despite the negative perception of Indonesia though, PERC noted “real headway in fighting the problem” under President Susilo Bambang Yudhoyono, who was seeking reelection in July.

“To be sure, the absolute scores show corruption in the public and private sectors is still very high,” PERC told AFP.

“But our latest survey shows that residents in Indonesia are more favorably impressed with the determined way the KPK [Corruption Eradication Commission] has been fighting corruption than any of the other countries graded poorly for corruption.”

The major question in Indonesia was whether the anticorruption efforts could be sustained.

The March results are based on more than 1,700 responses from 14 Asian economies plus Australia and the United States, which were included for comparison purposes, PERC said.

In a grading system with zero as the best possible score and 10 the worst, Indonesia got 8.32. A score greater than 7.0 indicates “serious” corruption problems.

Last year’s cellar-dweller, the Philippines, made a marked improvement, ranking sixth worst with a score of 7.0.

Thailand was seen as the second most corrupt country with a grade of 7.63, but PERC said foreign investors were more concerned about political stability.

“Very few expatriate executives find that corruption makes the country a less attractive place to live and do business,” it said.

Agence France-Presse

BI: Processing industry to grow only two percent

Jakarta (ANTARA News) - Indonesia`s processing industry is predicted to grow only two percent this year, down from 3.7 percent in 2008, according to Bank Indonesia`s economic report issued on Wednesday.

"The slowdown occurs because of decreased exports and domestic demand," it states.

BI predicts export-oriented industries would be the hardest hit, including textile and textile products, footwear, electronics, automotive, wood and wooden handicraft products.

Reduced domestic and external demand had forced many companies in the industrial sector to stop production. "They adopted the policy to avoid overstocking," it states.

It says expansion of the domestic economy will also be potentially hampered by tight liquidity and inflow of discounted imported goods.

The goods come from markets in advanced countries facing declining purchasing power.

It says imported goods that enter into Indonesia are not only half-made goods but also goods that are ready for consumption and also produced in the country.

BI also predicts the growth in the trade, restaurant and hotel sectors would also drop from 7.2 percent in 2008 to only 4.5 percent following weakening private consumption as a result of declining purchasing power.

The central bank predicts retail and wholesale trade that have dropped since the end of 2008 will further decline further in 2009.

Retail markets that will be affected heavily are the automotive, electronic and shoe markets.

Auto sales will drop, BI predicts, because people`s purchasing power declines while the price of cars soars to adjust with the exchange rate and because of tight liquidity, it says.

Indonesians vote for new parliament

The Jakarta Post, Robin McDowell, The Associated Press, Jakarta | Thu, 04/09/2009 7:46 AM

President Susilo Bambang Yudhoyono and First Lady Ani Yudhoyono show their thumbs marked by ink after they vote at a voting booth near their residence in Cikeas, Bogor, West Java, Thursday (4/9). Indonesians today vote in the parliamentary elections. (ANTARA Photo/Widodo S. Jusuf)

Legislative elections Thursday could determine if President Susilo Bambang Yudhoyono will have enough support to win a second five-year term needed to push through aggressive economic and institutional reforms.

Violence flared hours before the first polling stations opened in the easternmost province of Papua, the scene of a decades-long insurgency, killing at least six people, said local police chief Maj. Gen. Bagus Ekodanto.

But by midmorning, the situation appeared calm, with voters forming long lines to cast ballots.

The outcome of Thursday's election for a new 560-member legislature is being closely watched because it will determine who will qualify to run for president in July.

The party or coalition that wins a fifth of the seats - or 25 percent of the popular vote - can nominate a candidate for that race.

Yudhoyono's Democrat Party is expected to come out on top, but with more than 170 million people registered to vote and 38 parties to choose from, nothing is certain. Other front-runners are the Indonesian Democratic Party of Struggle headed by former President Megawati Sukarnoputri and the largest party, Golkar.

Indonesia, the world's most populous Muslim nation, emerged from 32 years of dictatorship under Gen. Suharto in 1998, leading to reforms that freed the media, struck down repressive laws and, in 200, allowed citizens to vote for president for the first time. It is often held up as a beacon of how Islam and democracy can go hand-in-hand.

If Yudhoyono's party wins 26 percent of the popular vote, as some opinion polls predict, he will not have to cobble together an alliance with others seen to be less willing to tackle corruption, overhaul the judiciary and streamline bureaucracy.

"At this moment it looks like he's going to make it," said Dede Oetomo, a political analyst from Airlangga University in the city of Surabaya.

Last time around, the Democrats won just 7 percent of the vote, forcing Yudhoono, eventually, to partner up with Golkar and a handful of Islamic parties that tried to push through laws governing everything from the way women dressed to the types of magazines that could be hawked on street corners.

Analysts say these elections could see the popularity of religious parties, which did well in 2004, waning. Most of the secular country's 210 million Muslims practice a moderate form of the faith.

"As long as these parties try to push through Islamic-based laws, they are going to keep losing support," said Syafiie Maarif, an Islamic scholar. "They need to come up with a broader, policy-based platform, like fighting poverty."

Campaigns across the board were largely personality driven and policies have been broad and ill-defined, focusing on issues like the effect the global slowdown has had on the economy or the need to root out pervasive corruption.

Unlike 2004, security is no longer a big issue, something many credit to Yudhoyono.

Indonesia was last hit by an al-Qaida-linked terrorist attack four years ago and, thanks to a 2005 peace deal, guns have largely fallen silent in formerly war-torn Aceh province, on the country's northwestern tip.

Aceh and Papua are the only places thathave been hit by pre-election violence, but it is not expected to spiral out of control.

Papuan police chief Maj. Gen. Bagus Ekodanto said more than 80 suspected rebels attacked a police post in the provincial capital, Jayapura, with machetes and spears at around 1 a.m. Thursday, leaving four dead in thelash that followed.

Elsewhere, he said, rebels who want Papua to break from Indonesia stabbed several motorcycle taxi drivers, burned an oil depot and property at a state university, leaving two others dead.

Voters, who had been told to boycott the vote, refused to be intimidated.

"I think everything should be solved in a peaceful way. That's why I'm out here today," said Leonard Tuilan.

In addition to a national parliament, elections were being held Thursday for a new provincial and local legislatures and councils.

The Indonesian Survey Institute poll showed the Democratic Party would win 26 percent of the popular vote; the Indonesian Democratic Party of Struggle 14 percent; and Golkar 13 percent. The four Islamic-based parties each came in at around 4 percent. The survey, based on interviews with 2,486 people, had a margin of error of 2.3 percent.

Associated Press Writers Zakki Hakim, Niniek Karmini and Ali Kotarumalos contributed to this report from Jakarta.

Related Articles:

Successful election marks a decade of democracy

Early quick counts have SBY's Democratic Party in the lead

Tribal vote

Yogyakarta to organize another voting for Papuans after attack

Wednesday, April 08, 2009

Economy may grow by 4.6% in Q1, supported by elections

The Jakarta Post, JAKARTA | Wed, 04/08/2009 12:03 PM

Stimulating election: A worker in a small T-shirt production house in Jakarta arranges the products ready to hit the streets. Finance Minister Sri Mulyani Indrawati predicted Tuesday Indonesia has grown by 4.6 percent in the first quarter from a year earlier, as elections helped stimulate the economy. JP/P.J. Leo

The economy may have grown by 4.6 percent in the first quarter of the year from a year earlier, as the elections helped pushed up consumption, the finance minister says.

Consumption remains the largest contributor to Indonesia’s economy, making up about 70 percent of the GDP.

Finance Minister Sri Mulyani Indrawati told reporters Tuesday that a number factors in the first three months of the year had helped boost consumption, such as the campaign for the general elections, fuel price cuts, and salary increase for state employees.

“Almost all political parties spent massive amounts on consumption during their campaigns in various activities,” Mulyani said.

“Bank Indonesia predicts that household consumption grew by 4.1 percent, while we predict it grew by 4.6 percent.”

The growth in consumption.

Mulyani added, mitigated slumping export figures and slowing flows of investment amid the global credit crunch.

The Central Statistics Agency (BPS) has reported that non-oil and gas exports contracted 28.34 percent to $12.26 billion in the first two months of this year, from $17.11 billion in the corresponding period last year.

Total exports stood at $14.23 billion in that period this year, a 34.5 percent drop from the $21.73 billion recorded in the same period last year, BPS data shows, with the central bank also cutting its full-year growth forecast to between 3 and 4 percent, down from the initial 4 to 5 percent.

“The recent trend of decreasing imports will also have a significant effect on investment. We predict that investment growth will decrease to 4 percent from 12 percent in the first quarter,” Mulyani said.

Indonesia’s economic growth of 4.6 percent is slower than the 6.1 percent booked in the fourth quarter of last year, but is still fairly respectable as compared to many of its peers in the region amid the global downturn.

Mulyani said the first quarter growth was within the government’s expectations.

“We have told the House of Re-presentatives that economic growth this year will tend to go downward, between 4 and 4.5 percent. That means our first quarter prediction is still achievable,” she said.

Mulyani also said the fiscal sti-mulus, worth Rp 43 trillion, had also contributed in improving consumers’ spending power for consumption in the first quarter.

“The tax cuts and their impact in stimulating purchasing power are already effectively recorded within the economic system during the first quarter as well.”

It forms part of the government’s Rp 73.3 trillion in stimulus package designed to keep the country’s economic wheels oiled and eventually cushion the external economic impacts.

Going forward, Mulyani was upbeat the elections would again help stimulate the economy, in particular consumption.

“We should consider the fact that the election is far from over, as it will proceed to the presidential election in June, which will greatly affect consumption, not to mention the impact of lower fuel prices along with the increase of salaries for state employees,” she said.

The BPS will reveal the official realization of this year’s first quarter economic growth in May.

The Asian Development Bank (ADB) and World Bank forecast Indonesia’s economy to grow this year by 3.4 percent and 3.6 percent, respectively.

Indonesia needs to keep its economy expanding at a respectable rate to help prevent unemployment and keep poverty rates from rising. (hdt)

Tuesday, April 07, 2009

Indonesia Foreign Debt at US$ 10.1 Billion

Tuesday, 07 April, 2009 | 18:42 WIB

TEMPO Interactive, Jakarta: Indonesia foreign debt due to be paid in 2009 reached US$ 10,1 billion, a report from the central bank showed on Tuesday. The report also projected foreign loans in 2009 at US$ 9,1 bilion.

Bank Indonesia noted that US$ 7,1 billion of the total debt was the primary loan while US$ 3 billion was the loan interest, and the government to make the payment from the 2009 state budget.

In 2009 the government planned to acquire US$ 9,1 billion to finance spending, US$ 5,8 will came in form of programme and project loans, while US$ 3,3 billion will be acquired through auctions of government and islamic bonds.

Several countries and international institutions have reportedly pledged loans for precautionary measures for Indonesia totalled at US$ 6,5 billion. The pledge came from the World Bank at US$ 2 billion, Asian Development Bank and Australian Development Bank to make separate contribution of US$ 1 billion, the Japanese government to make US$ 1,5 billion loans, while International Development Bank and the French government to lend US$ 0,5 billion.

The private sector according to the central bank is due to settle US$ 17,4 billion foreign debts due to mature this year or about 63,3 percent of Indonesia's total short term debts.


Samurai power

The Jakarta Post | Tue, 04/07/2009 7:01 PM

Finance Minister Sri Mulyani Indrawati (2nd right) exchanges agreement documents with Japan Bank for International Cooperation (JBIC) president Hiroshi Watanabe (2nd left) in Jakarta on Tuesday while accompanied by Japan’s ambassador to Indonesia Kojiro Shiojiri (left) and Director General for Debt Management Rahmat Waluyanto (right). Backed by a loan worth US$1.5 billion from JBIC, the government plans to issue sell five- and 10-year yen-denominated bonds or Samurai bonds this year.

US provides over $1b for RI airline upgrades

Ika Krismantari, THE JAKARTA POST, JAKARTA | Tue, 04/07/2009 11:01 AM

The United States Export-Import Bank approved more than US$1 billion in financing for Indonesian airlines to improve passenger fleets, generate business and create jobs in Indonesia and throughout the region.

In a press statement in Jakarta on Monday, the US Embassy said the financing was made possible after the ratification and implementation of the Cape Town Treaty, which allows Indonesian airlines to save millions of dollars in financing costs.

“This financing allows Indonesian-registered companies to gain very competitive rates and favorable credit similar to the most advanced countries in the world,” said US Ambassador Cameron R. Hume.

“This action by the US is a vote of confidence for the improvement of aviation regulation and the general business environment in Indonesia,” said Henry Bakti, the Indonesian Transportation Ministry’s director general for air transportation.

The financing will allow Lion Air to access $238 million to purchase new Boeing 737-900ER planes and provide preliminary authorization for another $841 million, for a total of 30 new passenger jets.

Last month, national flag carrier Garuda Indonesia announced the bank’s authorized joint financing of $346 million for increasing its’ fleet.

“We are delighted to offer Lion Air the reduced exposure fee available under this treaty, which reduces the legal risks associated with cross-border, asset-backed aircraft financing and leases,” said Robert Morin, Export-Import Bank vice president of transportation.

The loan facility is expected to boost not only aviation safety but also the country’s image, which has been marred by several air transportation accidents.

Since 2007, the European Commission has banned all Indonesian airliners from flying to EC territory in response to the country’s poor safety record. The government has since tried to improve the airline regulatory system and safety in the hope the EC will revoke the ban. EC representatives have promised to lift the ban, acknowledging the progress Indonesia has made. However, Indonesia will still need to comply with the remaining 10 of 60 flight safety requirements set out by the EC before the ban can be lifted.

At least six incidents of aircrafts skidding off the runaway occurred during the first quarter of this year.

While there were no fatalities, these accidents could signal the government’s sluggish effort to revise safety standards despite EC inspections to ensure the ban could be lifted.

Monday, April 06, 2009

BI rate cuts make no impact on growth in bank lending: Report

The Jakarta Post, JAKARTA | Mon, 04/06/2009 9:29 AM

Taking too long: Customers queue Saturday at an ATM in a mall in South Jakarta. Despite sharp cuts in Bank Indonesia’s key interest rate since December, growth in bank lending remains slow. With the BI rate at 7.5 percent, interest rates for bank lending remain high at 12 to 16 percent, discouraging companies and individual consumers alike from borrowing, thus doing little to get the wheels of the economy moving any faster. JP/P. J. Leo

Despite sharp cuts in the central bank’s key interest rates since December, growth in bank loans remains slow as the sector grapples with rising bad loans and — for small and medium lenders — tight liquidity.

Bank Indonesia has since December slashed its benchmark interest rate by 200 basis points, the latest cut being last Friday, to help bolster domestic demand and stimulate economic growth slowed by a drop in exports amid a global economic meltdown.

However, while the BI rate now stands at 7.5 percent, interest rates for bank lending remain fairly high at around 12 to 16 percent, discouraging companies and individual consumers alike from borrowing, thus doing little to get the wheels of the economy moving any faster.

Businesses also claim that banks have been applying stricter and tighter requirements in handing out loans.

Bank Mandiri, the country’s largest lender by assets, says such a trend may have a lot to do with the banking sector’s cautiousness in giving out loans amid a rising trend in nonperforming loans (NPLs), and also a lack of liquidity in small and medium banks.

“Smaller banks will keep their interest rates high because they are worried their clients will transfer their savings and deposits to larger banks, which would then hurt their liquidity even more,” Mandiri president director Agus Martowardoyo said Friday at a gathering.

“Banks also have to face other problems in lowering interest rates, such as the high cost of funding, capital, risk, management and competition.”

According to BI data, there was no significant amount of increase in loans from commercial banks since the first BI rate cut last December.

The report shows that bank loans for investment only increased by 1.3 percent to Rp 259.3 trillion in January from Rp 255.9 trillion from the previous month, while lending for consumption barely rose to Rp 367.2 trillion in January from Rp 367.1 trillion in December.

Lending for working capital even decreased to Rp 663.4 trillion in January from Rp 684.7 trillion in December.

A growing trend in NPLs may also have contributed to the trend.

The BI report shows that NPLs have been on the rise since December.

The percentage of loans that are NPLs increased to 4.2 percent in January from 3.8 percent in December. Last Friday, BI Governor Boediono said that in February, national banks’ gross NPL rate rose by another 0.1 percent to 4.3 percent.

The report says that NPLs increased by 10.5 percent on average in three major segments — working capital, investment and consumption — ever since the first BI rate cut in December.

By function, the NPLs dedicated for the working capital segment rose 10.5 percent in January from the previous month; for the investment segment they increased 13.5 percent, and for the consumption segment they rose 7.7 percent.

Aviliani, an economist from the Indonesian Development of Economics and Finance (INDEF), shared the same opinion with Agus that scarcity in liquidity as well as rising NPLs had slowed down growth in bank lending.

“The first factor is from the funding side: large corporate banks have no problem giving out loans, but smaller and mid-size banks are currently facing a liquidity problem that prevent them providing loans,” she said Saturday.

“Second, smaller banks set high annual deposit rates of between 12 and 14 percent in order to gather cash from the public to increase liquidity. With such a high percentage on the deposit rates, no wonder they choose to set around credit rates of around 16 to 17 percent.” (hdt/fmb)

Credit of Commercial Banks Based on Type of Use (In Bilion Rp)

Types of Use October 2008 November 2008 December 2008 January 2009

  • Working Capital 687,229 705,366 684,672 663,357
  • Investment 250,188 255,984 255,900 259,317
  • Consumption 360,443 363,973 367,117 367,165
  • Total 1.297,860 1.325,323 1,307,688 1,289,839

Non Performing Loan of Commercial Banks Based on Type of Use (In Billion Rp)

Types of Use October 2008 November 2008 December 2008 January 2009

  • Working Capital 22,250 24,637 22,953 25,361
  • Investment 11,403 11,807 9,607 10,904
  • Consumption 9,669 9,750 9,313 10,030
  • Total 43,322 46,194 41,873 46,295

Saturday, April 04, 2009

President: Teachers should be listened to and serve as model

Surabaya (ANTARA News) - President Susilo Bambang Yudhoyono said teachers will be playing an important role in the future, as he or she should serve as model to their students.

"If the teachers` advice and guidance are accepted and practiced in the daily life of their students, it means they are good teachers," the head of state during a get together with teachers engaged in `For you, my teachers` program organized by the Jawa Post group here on Friday evening.

The president also asked the teachers not only to teach their students but also develop their character and mentality .

"Teachers should be listened to, their advice heeded and their character should also serve as a model of their students," Yudhoyono said.

Accompanied by his wife, Madame Ani Yudhoyono, the president said this condition would be better if the teachers made innovations in teaching and record such achievement.

Also present on the occasion were State Secretary/Minister Hatta Radjasa, National Education Minister Bambang Sudibyo, People`s Welfare Coordinating Minister Aburizal Bakrie and Jawa post group chairman Dahlan Iskan.

BI moves to bolster growth

The Jakarta Post, JAKARTA | Sat, 04/04/2009 10:25 AM

For the fifth month in a row, the central bank slashed its key interest rate to bolster domestic demand and stimulate economic growth slowed by a sharp drop in exports.

The Bank Indonesia rate was cut by 25 basis point to 7.5 percent, BI Governor Boediono said Friday at a press conference, adding it had room for even more cuts.

“We decided to cut the rates after a thorough evaluation of the economy and the financial situation, both abroad and domestically,” Boediono said.

“Positive sentiments have been growing in the global economy following the G20 meeting, at which agreements were made on improving financial and capital market performance.”

The central bank earlier cut its growth forecast for this year as the impacts on the country of the global economic meltdown worsened. It predicts the economy to grow by 3 to 4 percent this year, instead of initial forecasts of 4 to 5 percent.

Data from the Central Statistics Agency (BPS) showed exports had dropped 32.8 percent in February from a year earlier.

A lower BI rate will force banks to lower their lending interest rates, boosting loan demand from companies and individual consumers alike, thus spurring economic growth.

Indonesia's economy relies heavily on domestic consumption, which makes up around 70 percent of gross domestic products (GDP).

With inflation also easing, the rate cut was fairly understandable, according to Sri Adiningsih, an economist at Gadjah Mada University in Yogyakarta.

“I see that inflation will continue to ease in the next few months to come, and the BI rate should be able to decline down to 7 percent,” she said.

She added state-owned banks should lead the way in giving out loans at lower interest rates.

“Private banks will prefer to go for profit by maintaining the spread between deposits and interest rates, so it's important for state-owned banks to be the pioneers and encourage other banks to take the same policy,” she said.

She added current national bank credit loan rates stand between 12 and 15 percent.

Muliaman Hadad, a BI deputy governor, said the central bank would put more effort into building positive perception within the banking industry.

“Credit loan rates from public banks are gradually decreasing, and we will continue to encourage bankers to continue lowering their loan rates,” he said.

BI has been cutting its benchmark interest rate since December. However, it has so far failed to jack up bank lending demand.

BI data shows that as of the end of December, outstanding bank loans stood at Rp 1,307.7 trillion, but dropped to Rp 1,289.8 trillion at the end of January.

Households begin to reduce consumption, spending: Survey

Erwida Maulia, The Jakarta Post, Jakarta | Fri, 04/03/2009 2:18 PM

Upper-middle class consumers may not have suffered a reduction in income as a result of the global monetary crisis, but most have cut their spending on tertiary and even secondary products, a survey revealed Thursday.

The survey, conducted in February by market research firm PT Ipsos Indonesia, found that 70 percent of nearly 600 upper-middle class women surveyed in Jakarta had reduced their household expenses and were saving cash in anticipation of financial difficulties in the future.

Twenty seven percent of respondents preferred to cut their bill costs, 24 percent reduced consumption, 19 percent shifted to products with less packaging, 13 percent switched to cheaper brands, 8 percent chose to delay buying certain purchases and 8 percent said they would stop consuming some products.

"They tend to reduce tertiary expenses such as buying outfits, eating at restaurants, visiting malls and cutting pocket money for children," Ipsos Indonesia managing director Iwan Murty said at the announcement of the findings at a press conference.

"They also cut some costs for secondary expenses, such as electricity bills, cell phone bills and cosmetic and skincare products," he added.

Respondents opted to reduce their consumption of milk and snacks and their need for laundry detergent and home cleaning products.

"One respondent even said she reduced milk consumption for her infant from five to three times a day while others said they used less moisturizer," Iwan said.

The changes in consumption patterns were not the result of declining income, he said, with only one respondent saying her household experienced a slide in revenue.

This spending behavior is in response to the soaring prices of many products and because of media coverage of the global financial recession, Iwan said.

"Had the media taken a more positive spin on the crisis, these women would most likely have not changed their spending patterns.

Besides reviewing their attitudes to consumption, half the respondents said they planned to earn additional incomes.

This situation is not unique to Indonesia, Ipsos said, and resembled patterns in other Asia-Pacific countries.

Ipsos Asia Pacific chief executive officer Rodrigo Tony said in a press statement that according to surveys involving 1,000 respondents in India, South Korea, China, Japan and Australia, most households in the region were trying to reduce their expenses by cutting consumption.

Industry, however, should not be discouraged by this condition, Iwan said.

They should not cut prices or stop advertising because that would have long term effects on weakening brand positions and, subsequently, future profits.

Friday, April 03, 2009

Obama plans to visit Indonesia this year: Yudhoyono

The Jakarta Post, Jakarta | Fri, 04/03/2009 11:22 AM

Back to the battle: President Susilo Bambang Yudhoyono speaks at a news conference Thursday night on board a Garuda Indonesia flight returning from the G20 Summit in London, as First Lady Ani Yudhoyono (right) looks on. The President arrived back in Indonesia on Friday and immediately headed to Surabaya, East Java, to campaign for his Democratic Party a week ahead of the legislative elections. Courtesy of Presidential Office/Abror Rizki

US President Barack Obama has planned to visit Indonesia this year, President Susilo Bambang Yudhoyono told reporters during a flight from London to Surabaya, East Java, on Thursday night.

Obama told his plan to his Indonesian counterpart when the two leaders sat next to each other at a working breakfast during the G-20 summit in London on Thursday morning local time.

"When I told Obama that the people of Indonesia were awaiting Obama's visit, he said he planned to do so this year," Yudhoyono said as quoted by Antara news agency.

In response to Obama's plan, Yudhoyono said if it was realized, the US president would again meet his former elementary school friends in Jakarta.

According to Yudhoyono, Obama still remembered lot of Indonesian words.

On a moment during the G-20 summit, Obama surprisingly tapped Yudhoyono on the shoulder and asked, "Feeling tired?"

"Then I said, 'No, I am OK.' He still remembers a lot of Indonesian words such as 'apa kabar' for how are you, and 'capek' for feeling tired," Yudhoyono said.

When speaking about Indonesia's view and attitude toward the current global financial crisis at the working breakfast, Yudhoyono used Bahasa Indonesia.

In his introduction, Yudhoyono said he hoped Obama could understand what he said.

"Obama then laughed and said, he had to learn to speak Bahasa Indonesia again," Yudhoyono said.

According to him, the US president was a good listener and was able to approach anybody.

"I saw that Obama continued to listen attentively to anybody, and hopefully it will be a new chapter for the United States to see our common views," Yudhoyono said. (dre)

New economic world order emerges

Mustaqim Adamrah, THE JAKARTA POST, LONDON | Fri, 04/03/2009 8:48 AM

The world’s 20 most powerful economies ended their summit Thursday with a set of measures that are hoped to function as a panacea to immediately cure the failing global economy.

Leaders of the G20 member countries walked out of the group’s summit venue in London with a united optimism of turning the course of the world’s economy into a more transparent and accountable financial system.

The group said in a statement that confidence would not be restored until trust in the financial system had been returned.

“Strengthened regulation and supervision must promote propriety, integrity and transparency; guard against risk across the financial system; dampen rather than amplify the financial and economic cycle; reduce reliance on inappropriately risky sources of financing; and discourage excessive risk-taking,” the group said.

Aside from setting out stricter rules for financial companies, the G20 also agreed to shame and name blacklisted tax havens. It will also set out new rules on pay and bonuses for corporate chiefs, and draft details to curb speculation among hedge fund companies, which have been widely blamed for the financial turmoil in the United States that proliferated to other countries.

“Our interests right now are to restore confidence and economic growth at the global level,” Indonesian President Susilo Bambang Yudhoyono told the accompanying Indonesian reporters.

“And that can only be reached with a high degree of financial system transparency, a stimulus package and monetary policies as counter-cyclical measures to help revive global demand and to make the economy run again.”

UK Prime Minister Gordon Brown said he believed a new world order had emerged from the summit.

“A new world order is emerging, and with it we’re entering into a new era of international cooperation,” he said in a press conference.

Other key measures agreed upon included pouring an extra US$1 trillion into international agencies, including tripling the International Monetary Fund's (IMF) financing to US$750 billion.

Yudhoyono said it would require more efforts by developed countries to help strengthen the multilateral financial institutions to help developing and poor countries recover from the crisis, as the cause of the problems stemmed primarily from developed countries.

The group said it had agreed to make available an additional $850 billion of resources through the global financial institutions to support growth in emerging markets and developing countries by helping finance counter-cyclical spending, bank recapitalization, infrastructure, trade finance, balance of payments support, debt rollover and social support.

"It's unfair for underdeveloped and developing countries to be held responsible for the mistakes they didn't make, without the help from the international community," Yudhoyono said.

The G20 members also vowed to promote global trade and investment and reject protectionism, to underpin prosperity, and to build an inclusive, green and sustainable recovery.

The G20 members are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the US, the UK and the EU.

G20 key measures

  1. G20 countries expect to have spent $5 trillion to counter the economic crisis by the end of 2010.

  2. Multilateral agencies will get financing boost worth $1 trillion. This includes a three-fold rise for IMF capital to $750 billion.

  3. The IMF will sell billions of dollars of gold reserves to help finance poor countries.

  4. To smooth the trade flow, an extra $250 billion will be allocated for trade financing.

  5. A concerted effort to shame and name blacklisted tax havens.

  6. Setting out new rules on pay and bonuses for corporate executives.

  7. Agreement to "act urgently" to conclude the WTO’s Doha round.

  8. Establish a new Financial Stability Board (FSB) with a strengthened mandate.

Thursday, April 02, 2009

Japan Offers $22 Billion Trade Aid, Warns Against Protectionism

Bloomberg, Toko Sekiguchi

April 1 (Bloomberg) -- Japan’s Prime Minister Taro Aso pledged $22 billion in trade assistance before tomorrow’s summit of leaders from the Group of 20 nations.

In a meeting with Indonesian President Bambang Yudhoyono, Aso in addition said the government in Tokyo will also give $20 billion in overseas aid to developing countries in Asia.

U.K. Prime Minister Gordon Brown, who is hosting the talks in London, wants world leaders to agree a $100 billion package to make up for credit lines lost during the turmoil in financial markets. Trade loans finance 90 percent of deliveries worldwide.

“We must send a strong message against protectionism,” Aso said, according to a Japanese government official who was at the meeting. “A recovery in Asian economies is key.”

Southeast Asian exports, which grew 14.7 percent last year, may shrink 10.3 this year, according to a report by the Asian Development Bank. Indonesia has the largest Southeast Asian economy. It’s the only G-20 nation in the 10-member Association of Southeast Asian Nations.

Japan in February pledged to guarantee $1.5 billion of Indonesian yen-dominated bonds, called samurai bonds. Yesterday, the government announced that it will provide a 71 billion-yen ($718 million) loan for Indonesia’s infrastructure projects. Indonesia is the largest recipient of Japan’s overseas aid.

Earlier today, Aso met with South Korean President Lee Myung-bak and won support for Japan’s plans to deploy a system capable of shooting down missiles launched from North Korea. Japan may test the system in early April.

“Japan may take any necessary measures to protect its people,” the Japanese government official quoted Lee as saying at the meeting.

Aso will speak with Brown and Italian President Silvio Berlusconi and before the G-20 meeting tomorrow.

To contact the reporter on this story: Toko Sekiguchi in Tokyo at Tsekiguchi3@bloomberg.net.