..:: B L O G O N M E ::..

Indonesian Government Asks for Virus Not to be Abused by WHO

2008-03-04T23:26:00.000+07:00

The Indonesian government has received a guarantee that the 15 bird flu virus (H5N1) samples that have been sent to the World Health Organization (WHO) were only to be examined for risk assessment, as to whether the virus is resistant to oseltamivir or not.

“Before the virus was sent, we already had the risk assessment guarantee letter,” said Siti Fadilah Supari, Health Minister, at her residence, Jalan Denpasar, Kuningan, Jakarta, two days ago (1/3).

According to Minister Siti, the bird flu virus samples were sent along with the material transfer agreement (MTA) that the government proposed be signed by the WHO.

If the WHO is willing to sign it, then the government will send more virus samples.

“Otherwise, the government will struggle again,” said Minister Siti.
According to her, the dispatch was a test as to whether the WHO will approve the MTA or not.

In December 2006, the government stopped sending bird flu virus samples.

This policy was taken to prevent multinational companies from using Indonesian virus samples to develop vaccines with a high sales price.

Minister Siti said that with the MTA, the bird flu virus sample dispatch mechanism is more transparent and fair in terms of responsibility towards the virus sending country.

The government's desire to change the mechanism, according to her, is not only useful for bird flu cases but also other diseases.

Under the old mechanism, virus samples were prone to be misused and
could therefore spread again in Indonesia and cause a new cases.

This is because the bird flu virus spread in Indonesia is inappropriate with epidemiology.

“This needs a great deal of attention,” said Minister Siti.

With the new mechanism, she said, the government has tried to overcome the large number of bird flu case in Indonesia.

“With transparency, what ever the virus is used for can be known,” said Minister Siti.

C.A. Nidom, Head of the Avian Influenza Tropical Disease Center Laboratory at Airlangga University, supported the government's measure to start sending bird flu virus samples.

According to him, the government needs to prioritize the bird flu handling in the country instead of fighting for the right in the MTA process at the WHO.

“What we're facing are human lives and the world's community,” said Nidom when contacted yesterday (2/3).

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source :
Margahayu Land
http://margahayuland.blogspot.com/2008/03/indonesian-government-asks-for-virus.html

Abu Dujana Admits Keeping Weapons

2008-03-04T23:25:00.000+07:00

Abu Dujana, the defendant in the alleged terrorism case, admitted keeping weapons and explosives. According to him, the weapons were the remains of the conflict in Ambon, Maluku. “There was an M-16 and a few broken pistols,” said Abu Dujana, answering Wahjono, the chairman of the panel of judges at the South Jakarta District Court, yesterday (3/3).

Despite admitting possessing weapons, none were bought by him. The agenda of the trial yesterday was hearing defendant Abu Dujana's statement.

Abu Dujana was charged by terrorism as possessing, keeping and distributing firearms and explosives. Abu, arrested on June 9, 2007 in Banyumas, Central Java, was charged with Article 9 of the Anti-terrorism Decree. In addition, he was charged with Article 17 of the Anti-terrorism Decree regarding his involvement in terrorism cooperation.

At the trial Abu Dujana a.k.a. Ainul Bahri, denied some of the investigation results in the deposition. According to Abu, his health at that time very much affected his statement he gave to the investigators. A gunshot wound in his left thigh, he said, made him so that he could not concentrate. “The wound on my leg made me tired, dizzy and nauseous,” he said.

Abu also recounted having participated in war training between 1999-2000 in the Philippines, then in Afganistan in 1989. He also acknowledged being acquainted with Noor Din M. Top, the most wanted terrorist fugitive. However, he said, how he knew Noor Din was not like what is written in the deposition, as if they were solidly cooperating in a terror

After hearing the defendant's statement, the trial was resumed by the agenda by reading the charge. The panel of judges' chairman, Wahjono, asked the prosecutor to prepare the charge against Abu Dujana in the trial in the next two weeks.

After the trial, the public prosecutor Narendra Jatna, said Abu Dujana's explanation in the trial this time was his right as a defendant. According to Narendra, the defendant also has the right of objection. However, Narendra believed Abu Dujana only denied certain matters that did not influence his charge of terrorism . “For instance, admitting to keeping firearms and explosives and meeting Noor Din M. Top,” said Narendra.

Asludin Hatjani, a member of Abu Dujana's legal team, did not comment much. She said she would just wait for the charge announcement.

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source :
Margahayu Land
http://margahayuland.blogspot.com/2008/03/abu-dujana-admits-keeping-weapons.html

Nine IPDN Students Become Suspects

2007-07-25T12:55:00.000+07:00

The Rector of the Home Affairs Administration Institute (IPDN), Johanis Kaloh, acknowledged that his students mobbed Wendi Budiman, a resident of Cikeruh Village, Jatinangor District, Sumedang and caused his death.

“The perpetrators were nine students. All of them were in the fourth grade,” said Adjunct Chief Commissioner Budi Setiawan, Sumedang Regional Police Chief,West Java, yesterday (23/7).

According to Budi, the turmoil started at the lift at Jatinangor Town Square (JTS), Sumedang. That night, Saturday (21/7), Wendi with his four friends wanted to play billiard in Pool Time, on the second floor of JTS. Inside the lift, the cigarette in the victim's mouth burned the nape of the neck of Gondo Widodo, a student who had been attending the Master’s program at IPDN.

Gondo was emotional. The other three students who accompanied Gondo, Megawati, Hasdono and Andi Irmayanti, also became emotional. When the lift door opened, Megawati ran and shouted for help. Several students who were playing billiards helped the seniors. Wendi was bullied. The mall security officers separated them .

“Unconscious, my son was brought home by his friends,” said Ibo Rohman, Wendi's father.

The victim was brought to Sumedang General Hospital. On the following day, the 22 year old boy died. There was a cerebral hemorrhage and cracked skull. From the autopsy, it was found that he died of the assault.

The incident triggered Cikeruh villagers' fury.

Yesterday, after burying Wendi's body in Gajah Cemetery, they conducted a rally at the gate of IPDN. Several police officers guarded the campus gate. The villagers were yelling IPDN must be disbanded.

IPDN Rector Assistant III. Indarto, met the residents.

“We apologize for this incident,” he said to the residents. Regarding disbanding IPDN, he said he was not authorized to decide that.

To the Head of Home Affairs Department's Information Center, Saut Situmorang, Kaloh acknowledged the students beat Wendi to death.

The IPDN Rector, he said, has not yet confirmed on what basis will the sanction be given to the nine students. Saut guaranteed that the Home Affairs Department supported the legal process carried out by the police. “”We're consistent. If they're found guilty, the nine students are subject to dismissal,” said Saut.

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tempo

BI: No Need to Worry about Economic Crisis

2007-07-10T17:16:00.000+07:00

Bank Indonesia (BI) has stated that market players and the public should not worry about a potential second economic crisis spread by a number of world economic institutions.

“Now domestic economic conditions are fully under control,” said Burhanuddin Abdullah, BI Governor, in Jakarta last week.

“Even the position until midyear is still in surplus, so it can still be contractive,” he said.

The Government's Report on the First 2007 State Budget Implementation says that up to mid-June, there has been Rp23.6 trillion budget surplus or a rise of Rp9.7 trillion compared to the same period's surplus last year.

According to Burhanuddin, Indonesia's payment balance (NPI) surplus of US$3.7 billion in June, higher than the initial estimation of US$1.1 billion, also supports economic stability.

The payment balance surplus was not gained at the time before the 1997 economic crisis.

Then, NPI was in continuous deficit.

“Our NPI surplus only happened in 1952 during Korean war
and the 1974 oil boom,” said Burhanuddin.

The last factor, he said, was the economic institutional condition which is also stronger.

Based on BI's monitoring, the banking sector, which used to be a problem, in fact grew stronger.

“So there's nothing to worry about,” said Burhanuddin.

Last week, several institutions warned about the possibility of an economic crisis.

The World Bank, for instance, warned Indonesia about soaring hot money (short-term capital flow) to capital markets.

The flood of foreign capital coming into developing countries' markets and slight differences between domestic interest and international market interests can be very risky.

The Asian Development Bank has suggested Asian countries stay alert about a potential economic crisis like what happened ten years ago.

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tempo

RI urged to get rid of fuel subsidies

2007-06-28T08:37:00.000+07:00

Indonesia needs to stop subsidizing the sale of oil-based fuels and gas on the domestic market in order to make it more attractive to investors, the government has been told.

The president of the International Energy Agency (IEA), Leonard L. Coburn, who is here on a visit, said Tuesday that the government's current subsidy system discouraged new investors from entering the downstream oil and gas industry as the subsidies created market distortions.

"It would be better for the government to revoke the subsidies to make the market more attractive," Coburn told The Jakarta Post on the sidelines of a meeting between officials from the Directorate General of Oil and Gas and 14 officials from the IEA.

The subsidy question was raised during the meeting on the grounds that it flew in the face of market principles as it allowed the government to interfere in the market and fix prices.

Coburn also said that by revoking the subsidy, the government would be better able to reduce fuel consumption as people would only use as much gasoline as they could afford.

"In some areas where you have subsidized fuel, you are getting too much consumption. You will get too much, but if your price is changed, you will get less of it," Coburn said.

During the meeting, Coburn also asked why Indonesia's fuel subsidies benefited not only the poor, but also the better-off.

The government currently subsidizes kerosene, gasoline and diesel use by motorists, households and small enterprises. In the case of regular gasoline, for example, the government has set the price at Rp 4,500 as compared to the current market price of Rp 6,000.

The government has set Rp 61.93 trillion this year to subsidize 37.9 million kiloliters of oil-based fuels.

The government is also considering subsidizing gas producers which are willing to allocate part of their production to the domestic market to bring the prices they receive up to economic levels -- a step that has been criticized as it will lead to further market distortions.

Aside from the question of subsidies, the France-based IEA applauded the government's decision at the end of 2005 to open up the retail fuel market. As a result, Shell and Petronas have already opened a number of gas stations in Jakarta.

However, he pointed out, as Pertamina still had a monopoly over the sale of subsidized fuels, the Indonesian retail market was still unattractive to investors, despite the quasi liberalization of the market.

He said that if private-sector investors were only allowed to sell non-subsidized fuels, then the market would be too small as their earnings would not be able to cover their operating costs.

Currently, state-owned oil and gas firm Pertamina still controls the subsidized fuel market, which accounts for almost 95 percent of all oil-based fuels distributed in Indonesia.

Responding to the subsidy issue, Director General of Oil and Gas Luluk Sumiarso said that it would not be easy to abolish the subsidies as higher fuel prices normally meant political suicide in Indonesia.

"However, we have found a way out that avoids having to raise prices. Instead we will reduce the volume of fuels that will be subsidized," Luluk said.

In its 2008 budget estimates, the government has proposed reducing the subsidized-fuels' quota by 1.4 million kl to 36.5 million kl in 2008 from 37.9 million kl this year.

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jakarta post

Painting as Pondering and Inspiration

2007-06-24T12:16:00.000+07:00

Artist I Dewa Komang Mahadewa is remarkably creative. In the midst of his bustle as notary public, the man from Karangasem born on 5 March 1966 also makes time for painting. Making scratches on paper and canvas fills his daily activity. His artistic works have more sweet and attractive colors and sizing 30-40 cm. Meanwhile, the media he uses is acrylic paint on canvas in naturalistic and realistic style. The theme he exposes mostly pertains to Balinese traditional culture. Paintings of this kind are eminently favored by foreign visitors.

To Deko—as he familiarly called—painting is not only making scratches and filling them with colors, but also a contemplation and inspiration, so that his works possess a typical allurement. If displayed in a room, his painting will emanate an impression of its own for those who see it. His works have been collected by visitors from Japan, Taiwan, America, Europe and Indonesia.

Recently, this seventh son out of eight children creates lots of cartoons. In art domain, the cartoon has indeed not been acquired proper position in the heart of its enjoyer. However, this chubby man, the initiator of 3-1 system in painting admits that becoming a cartoonist is absorbing as only few people that can feel happy as “scarce being.” In addition, through cartoons he can communicate to others, through the sense of humor, but certainly without the presence of sarcasm. “Thank God, if it could be contemplated and has made aware of those who feel to be reminded,” says Deko who is frequently taking part in cartoon exhibition in Semarang, Jakarta, Yogyakarta and Denpasar.

A frequent theme expresssed is in the form of social criticism. Its inspiration often comes to his mind in the form of what he watches and experiences in person. Any incidents occuring in the community, either those pertaining to politics, society; culture and defense matters often influence his works. All that he expresses are just like a philosopher that does not reduce his sense of wisdom. “Though in the form of criticism, in expressing his mind he should take many considerations like the moral, ethic and sense so it does not insult others later,” says the receiver of MURI (Indonesian Museum of Record) in the realm of education. He has graduated from basic education most quickly and then continues his study regularly.

Making a cartoon starts from the sense of idealism, namely, how to make others happy. However, to look for self-actualization, the artist who is commonly appreciated by mass media in Bali also often organizes exhibition. These exhibitions have taken place since 1983 up to these days. Its venue does not only in Denpasar, but also in Jakarta, Semarang, Ujung Pandang and other big cities across Indonesia. Similarly, his cartoons have been widely published in the newspaper, magazine and tabloid.

Painter and writer, who in his bachelor period frequently won several portrait painting and cartoon competitions, admits to have some interesting experience. On making cartoons expressing his anxiety about the demonstrations in Bali, he once got in touch with police. “Many a time, a cartoon is assumed to become a criticism making the people restless. Whereas, it poses a correction that drives awareness,” he says.

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source

Catalog Of Anti-US, Anti-Australia Protests

2007-06-18T15:25:00.000+07:00

Islamic groups staged separate demonstrations outside the US and Australian embassies in Jakarta yesterday and warned the US not to attack Afghanistan or other Muslim nations, as well as condeming recent attacks on mosques in Queensland, Australia.

Separately, a number of high-ranking officials in Indonesia urged Muslim groups not to attempt to force citizens of the US and and its allies to leave Indonesia.

Yesterday around 200 people from the Muhammadiyah Students Association (IMM) rallied in front of the US Embassy here in Jakarta, denouncing the possibility of US attacks on Afghanistan.

Muhammadiyah is Indonesia+´s second-biggest Muslim organization and has many schools and universities.

During the rally, the IMM students waved posters and banners and delivered speeches in the street, causing heavy traffic disruption. Chairman of South Jakarta chapter of IMM, Mohammed Supendi, said the protest was a reflection of solidarity among Muslims against likely strikes by the US on Afghanistan.

"The US government´s plan to attack Afghanistan would be a big mistake," he said, complaining that Washington´s decision to accuse Osama bin Laden of masterminding the September terrorist attacks on the World Trade Center in New York and the Pentagon in Washington DC was tantamount to a declaration of war against Islamic believers.

Supendi warned that if the US does attack Afghanistan, then Indonesian Muslims will wage war on America. "Toward this eventuality, IMM calls on all Islamic believers to unite and to launch a holy war (jihad) against the US," he thundered.

At the Australian Embassy, around 100 youths, belonging to the Syabab Hidayatullah organization, noisily denounced recent attacks on mosques in Queensland.

Demonstration coordinator Mohammad Isnaeni said his group has asked the Australian government to punish "those who have indulged in the amoral acts". The demonstrators also demanded the Australian government apologize to the international Islamic community and rebuild the damaged mosques.

Australian Prime Minister John Howard was outraged by the latest attack on Saturday, saying "If it is an act of vandalism or vilification, I condemn it unreservedly. There is no place in Australia for that kind of despicable conduct," Howard went on "Islamic Australians are as entitled as I am to a place in this community. If their loyalty is to Australia as is ours, and their commitment is to this country, we must not allow our natural anger at the extremes of Islam which have been manifested in the attack on the World Trade Center to spill over on to Islamic people generally".

"Hundreds of Islamic people died in the World Trade Center. Barbarism has no ethnicity and no-one should give any comfort to anybody in this country who seeks to wreak vengeance on people of the Islamic faith or people of Middle Eastern descent," Howard said.

In Indonesia´s second largest city, Surabaya, around 300 protesters from different Islamic organizations grouped in the Islam Anti-Terrorism Movement (GIAT) yesterday staged a demonstration in front of the US Consulate.

Among the organizations in GIAT are the Indonesian Muslim Students Association (HMI), National Mandate Party Youth Front (PAN-FP) and Association of Inter-Campus Muslim Students.

The demonstrators condemned all terrorist actions and urged the US not to attack Afghanistan. They also criticized the US for its "double-standards" and called on President Megawati Sukarnoputri not to support America´s stance on Afghanistan.

"We want the US consul general to send our demands by facsimile to Jakarta, which will then send them to the United States," Nurhadi, one of the demonstrators, told local reporters.

Many officials here have vainly urged Muslim groups not to search for citizens of the US and its allies and force them to leave Indonesia.

Vice President Hamzah Haz said yesterday that he opposes the threats to launch a "sweeping operation" to expel US citizens. "Sweeping is not the right move," he said.

Earlier, on Sunday, militant Muslim groups went to several five-star hotels in Solo, Central Java, searching out American tourists in a ´sweep´. Calling themselves the Anti-American Terrorist Force, they also visited Solo´s Adi Sumarmo International Airport. No Americans were found.

The groups also went to several hotels, handing oujt posters which read: "Once Afghanistan is attacked, people from America and its allies have to get out of Solo."

Reports said the groups consisted of Laskar Santri, Surakarta Islamic Defenders´ Front (FPI), Jundullah Force, Al-Islah Force, Hawariyun Force, Hisbullah Brigade, Salamah Force and several other radical groups. Some of them were involved in a similar search for Americans in Solo last year, following protests over US support for Israel. The groups on Monday vowed to conduct another search for Americans in the city but did not specify when.

Hamzah Haz urged followers of Islam not to go after Westerners. "Don`t attack foreigners here. Let the government handle them," he said, adding the government would never harm the interests of Muslims.

Foreign Affairs Minister Hassan Wirayuda, speaking in New York late Monday, condemned the searches, saying they would hamper the government´s efforts to restore Indonesia´s international image. "We need to cooperate with all people in the country to avoid actions that could worsen Indonesia´s image abroad," he said.

Home Affairs Minister Hari Sabarno entered the fray yesterday, saying that police are responsible for dealing with groups which launch sweeps against US citizens. "There must be a strong measure from the security authorities," he said, and emphasized that Indonesia is a law-abiding country, where the rights of citizens, including foreigners temporarily staying in the country, are guaranteed.

Jakarta Police chief Inspector General Sofyan Jacoeb said yesterday that efforts to expel US citizens would only tarnish Indonesia´s image abroad, and those responsible for any sweeping operations would be arrested. "We are going to arrest them according to the law," he told reporters before attending a meeting of local government leaders and security officials.

The meeting, convened specifically to discuss the impact of possible US attacks on Afghanistan, was attended by Jakarta Governor Sutiyoso, Jakarta Military commander Major General Bibit Waluyo and religious leaders.

Jacoeb said he plans to deploy sharpshooters, to protect US citizens, at 17 locations in Jakarta, including Sukarno-Hatta Airport, US offices, the US Embassy and residential areas. In addition to the sharpshooters, he added, 10 companies of police will be deployed to protect the locations.

Jakarta Military commander Waluyo said Indonesians should not jump on the anarchy bandwagon in protest of the possible US strikes on Afghanistan. "What is the point of launching demonstrations? It will only add to the suffering of the poor. The problem of America should be left to the care of the Americans," he pontificated.

He said it is the right of any groups to hold demonstrations as a reflection of solidarity with the people of Afghanistan, as long as the protests do not get out of control. "How would you feel if it was our turn to be made the subject of a sweep by white men in the US?" he asked.

Governor Sutiyoso said searches for US citizens in Jakarta would be detrimental to the national capital. "I don´t like a sweep to be held in Jakarta because it will only harm our interests." The governor said officials held talks with Muslim leaders to ensure that sweeps will not be conducted in the national capital. However, he noted that the Islamic Defenders Front, which has expressed its intention to search for and expel US citizens, was not invited to the talks.

In east Java Governor Imam Utomo said yesterday that US citizens living in or visiting his province should not worry about the threat of searches. "I have called on the people to refrain from such an act," he told the press Utomo said he had met with a number of local Muslim leaders and expects adherents of Islam in East Java to exercise self-control "so as to avoid indulging in destructive acts". Commenting on the provision of protection to US citizens and interests in East Java, the governor said he has not received any requests for safety guarantees. "If there have been any requests, they were probably submitted to the police chief," he said.

Indonesian legislators have also tried to stem the rising anti-US sentiment and on Monday appealed to police to take action against those responsible for the anti-American searches. "The police could either question or arrest them," Ibrahim Ambong, chairman of House of Representatives Commission I on security and foreign policy affairs, told a local newspaper

He said searches for Americans in public places would fly in the face of President Megawati´s promise to maintain security for investors in the country. Megawati told American investors in Houston, Texas, on Saturday that the security situation in Indonesia was improving.

National Mandate Party (PAN) legislator Andi Mappataheng Fatwa also said police must fulfill their promise to protect foreign citizens, especially Americans. "Even more so after Ambassador Robert S. Gelbard himself asked the police chief to protect US interests and its citizens in Indonesia," he said.

(source : www.indonesian-observer.com)

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indoexchange

DPR Asked to Evaluate Tangguh Gas Price

2007-06-15T11:26:00.002+07:00

The House of representatives (DPR) has been asked to form a special team to investigate the liquefied natural gas (LNG) sales contract from Tangguh gas field in Papua.

The price of Tangguh gas overseas is regarded as cheaper compared to that of domestic gas sales.

Effendi Situmorang, an oil industry observer, said that the team was aimed at researching and probing the contract and sales price of Tangguh gas.

The special team, he said, comprises DPR members, government officials and the Supreme Audit Agency (BPK).

“The purpose of forming the team is to take responsibility as regards whether the 20-year gas sales contract will result in benefit or loss for the state,” he told Tempo yesterday (13/6).

According to Effendi, the Tangguh gas sales price, US$3.5 per mmBtu on average, is the lowest price in the history of Indonesia's LNG sales.

“LNG price from Tangguh is lower than gas price in domestic market, which is above US$4 per mmBtu on average,” said the former Pertamina's Director of Production Sharing Management (now the Upstream Oil and Gas Executing Body or BPH Migas).

He explained that now the State Electricity Company's (PLN) power plants buy gas at prices above US$4 per mmBtu on average.

Moreover, Tangguh gas sales price can cause price discrimination in LNG from Arun gas field in Aceh and Badak gas field in East Kalimantan.

“Up to now Japan buys LNG from Indonesia at between US$7 and US$8 per mmBtu on average,” said Effendi.

Purnomo Yusgiantoro, Energy and Mineral Resources Minister, disagreed that Tangguh gas sales price was too cheap.

His reason was that the US$3.5 per mmBtu price is the export price (free on board).

“When the goods reach the destination, the price can reach US$7 to US$9,” he told Nieke Indrietta from Tempo.

Purnomo went on to say that around 50 percent of Tangguh's LNG for Sempra is also transferred to other contract to gain a better price.

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source

Humpuss To Issue US$400 Million In Bonds

2007-06-15T11:26:00.001+07:00

PT Humpuss Intermoda Transportasi Tbk. plans to issue bonds worth US$400 million to purchase five ships this year. Earlier, this company that runs a sea transportation business planned to obtain a banking loan to fund its expansion.

Agus Darjanto, President Director of Humpuss Intermoda, said that based on analysis the company has carried out, it had been decided not to obtain a banking loan.

“If we borrow from banks, there is little ‘room to move,’ despite us needing a large amount,” he said after holding a press conference following Annual and Extraordinary General Meetings of Shareholders in Jakarta yesterday (13/6).

Agus said the bonds that will be issued comprise of senior debt amounting to US$350 million with eight year period and junior debt of US$50 million with five year period.

The funds will be the sources of the company's expenditure up until to 2010.

He went on to say that after purchasing the new ships, the company plans to continue securing the company's assets in order to look for new loans.

The funds, said Agus, will be used for refinancing all the company's debts, including bond obligations.
Humpuss has allocated US$159.6 million (around Rp1.4 trillion) to purchase five new ships.

According to Agus, the five ships consist of Panamax ships and chemical tank ships.

As regards Panamax, those we are aiming at are that like the ships of Malaysia, Thailand, Japan and Korea,” he said.
In terms of chemical tank ships, the targets are 13,000 dead weight tons (DWT) ships.

The purpose is to meet the international market segment.

Earlier, Sapto Basuki, Humpuss Intermoda's Corporate Secretary, said that some of the funds for purchasing will be gained from the sales of two oil tank ships whose contract terms have ended and are worth US$36 million (Rp316 billion).

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source

European Commission and Japan Grant US$15 Million for Bird Flu

2007-06-13T18:58:00.003+07:00

The European Union and the Japanese government have given grants amounting to US$10 million and US$5 million respectively for handling the bird flu virus in Indonesia.

The grants were announced during a meeting between the Indonesian government and the donor countries at the “ HPAI in Indonesia: Latest Situation and Future Steps to Control H5N1 Virus” as the theme, at the Gran Melia Hotel, Jakarta, today (13/6).

“The spread of bird flu virus in Indonesia is sporadic and doesn't show any certain pattern. The war against this virus must be applied in all directions, especially as regards animals as the source of infection,” said Bayu Krisnamurthi, Head of the National Team for Bird Flu Handling and Readiness to Face Pandemic Influenza (Komnas FBPI).

It is planned that the grants will be used for supporting activities such as vaccine quality, socialization of fowl vaccination, vaccination officer training, access to vaccine storage and vaccine procurement.

The grants will be divided, for the Agriculture Department US$9.56 million and the remainder for the Komnas FBPI for many activities.

The time to use the grants is between July, 2007 and July, 2009.

Many activities to handle bird flu on animals have been prepared.

However, Musny Suatmojo, Director of Animal Health at the Agriculture Department, refused to give the details.

“Now it's being discussed in the meeting. Tomorrow there'll be certainties as regards the activity details,” he said.

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source

Newmont's Lawsuit Against New York Times Postponed

2007-06-13T18:58:00.001+07:00

The panel of judges at the Central Jakarta District Court postponed the civil claim of PT Newmont Minahasa Raya's President Director, Richard Bruce Ness, against The New York Times newspaper, yesterday (11/6).

The reason is, during the trial headed by judge Heru Pramono, only Newmont's legal adviser, Arief Surowidjojo, was present. As from The New York Times, the side was absent. “The trial is adjouned for a week,” said Heru, closing the trial.

In the lawsuit, Ness regarded The New York Times as having contained the article that defamed his reputation and assassinated his character. The articles were written by the reporter Jane Perlez and were published three times: September 9, 2004; September 24, 2004 and October 7, 2004.

Ness, in his lawsuit, says that the news of The New York Times and several other media of its subsidiaries such as the International Herald Tribune and The Boston Globe, has caused Newmont to suffer loss as what was printed was not true.

The New York Times along with reporter Jane Perlez, contained articles with such headings as, “Spurred by Illness, Indonesians Lash Out at U.S. Mining Giant” on September 9, 2004 and “Gold Mining Company to Pay Indonesia $30 million” on February 17, 2006.

Ness wanted the recovery of his reputation and apology to be published as a first-page story in the newspapers and all media subsidiaries of The New York Times and www.nytimes.com website. He also asked The New York Times to pay immaterial compensation amounting to US$63.930 million.

Richard Bruce Ness was acquitted by the Manado District Court on April 26, 2007. As PT Newmont's President Director, Ness was found not guilty in environmental pollution in the Buyat Bay area.
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source

BI Rate Down by 25 Base Points

2007-06-08T12:29:00.001+07:00

At a meeting of the Bank Indonesia (BI) Governors Board on Thursday (7/6), it was decided to lower the BI rate once again, this time by 25 base points to 8.50 percent from the previous 8.75 percent.

Budi Mulya, BI's Director of Strategic Planning and Public Relations, said that the lowering of the BI rate was based on consideration of the prospects of this year's inflation target of six plus-minus one percent and next year's five plus-minus one percent.

“The decrease was also following our in depth study of the latest economic and financial developments,” he said in Jakarta.

He went on to say that in general, the economy will still continue with a more balanced pattern.

This is reflected in the economic growth target of 5.7 percent, higher than BI's initial projection.

In addition, the Rupiah exchange rate in May also strengthened from an average Rp9.093 against the US dollar in April to Rp8.838 against the US dollar in May, 2007.

“May's inflation was also still maintained.”

Core inflation was recorded at 5.62 percent year on year, the lowest rate in the last six years.

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source

Sarwono Awaits Constitutional Court's Decision

2007-06-08T12:28:00.000+07:00

Jakarta Gubernatorial candidate, Sarwono Kusumaatmadja, acknowledged he could not register as gubernatorial candidate because he was not supported by a political party.

“I can't register anymore,” said Sarwono after attending the material review trial of the Regional Governance Decree at the Constitutional Court, today (7/6).

Now he is waiting for the decision of the Constitutional Court which is still in the middle of its Regional Governance Decree judicial review.

“Because I chose the independent lane,” said Sarwono.

The former Maritime Affairs and Fisheries Minister acknowledged the experts' statement during the Regional Governance Decree judicial review that there should be an opportunity for independent candidates to become regional leaders.

“A non-party lane is in fact needed,” said Sarwono.
He then made an analogy of his candidacy as the Regional Representatives Assembly (DPD) member.

At that time Sarwono did not need to have support from any political party in order to become a DPD member.

“I was elected by the people without going through any political lane,” he said.

The Jakarta Governor Election entered the last day today for the registration of gubernatorial candidates and the deputies at the Regional Election Commission (KPUD) Jakarta.

However, so far there has not been any candidate pairing who have registered at the KPUD.

As already reported, the pair of Sarwono and Jeffry who was previously put forth by the National Mandate Party (PAN) and the National Awakening Party (PKB) have canceled their participation in the Jakarta Governor Election because they did not have 15 percent of the votes of the Provincial Legislative Council (DPRD).
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Former Rose Team Commander Wants Judicial Review of Human Rights Court Law

2007-06-07T16:21:00.003+07:00

Former “Rose Team” Commander, Major (retired) Bambang Kristiono, filed a proposal for s judicial review of the Human Rights Court Decree at the Constitutional Court, yesterday (5/6).

Bambang, via his attorney Mahendradatta, asked the Court to correct Article 43 Point 2 of the Decree No. 26/2006.

“Bambang is worried because the articles can lead him being scrutinized again by the ad hoc Human Rights Court,” said Mahendradatta at the Constitutional Court, yesterday.

Bambang is a former Army Infantry Major who was Battalion 42 Commander Group 4 of Special Force Command (Kopassus) and concurrently “Rose Team” commander.

“Rose Team”was the team involved in kidnapping and making activists disappear by force cases of in 1997-1998.

Bambang was sentenced to 20 months imprisonment by the Supreme Military Court in 2000 and was also dismissed from the Army because of the case.

Mahendratta said Article 43 Point 2 of the law states that the ad hoc Human Rights Court was formed based on the House of Representatives' (DPR) suggestion with the President's decision.

The article's explanation states that the ad hoc Human Rights Court was formed after the House deemed there had been a severe human rights violation during a certain event in a certain time and place prior to the Human Rights Decree being effective.

According to him Mahendratta in the activists kidnapping case, the Human Rights National Commission sent a letter to the House on December 27, 2006, and Bambang's name is in the letter.

The letter states that Bambang can be asked for statement as regards activists kidnapping cases.

“The nebis in idem principle may not be valid for our client,” said Mahendratta.

The trial began with preliminary questioning by the panel of judges led by judge H.A.S. Natabaya.

Constitutional judge Natabaya asked the applicant which constitutional right of him that was infringed due to the decree.

He asked the applicant to strengthen the legal standing of the judicial review.

“The constitutional loss suffered by the applicant is not clear,” he said.

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Tax Directorate General Oversees Indosat Tax Problem

2007-06-07T16:21:00.001+07:00

The Tax Directorate General has acknowledged that there has been a decrease in the tax deposits from PT Indosat Tbk.'s revenues during the last couple of years.

However, tax officials have not yet carried out an investigation as there are not any indications of tax manipulations by Indosat, in which Singapore Technologies (ST) Telemedia owns the majority shares.

“We've collected the dossiers but they are insufficient as there must be indications of (tax) manipulation,” said Darmin Nasution, Tax Director General, Jakarta yesterday (5/6).

Signals of the state's losses due to Indosat's tax income and dividend shortfalls amounting to around Rp323 billion were brought up by Dradjad H. Wibowo, a member of the House's Banking and Finance Commission.

According to him, the potential income tax losses are Rp196 billion, the potential loss of revenue from dividends Rp65 billion and the potential loss of income tax from dividends Rp62 billion.

The losses were due to Indosat's mismanagement in carrying out derivative transactions.

Darmin asked that Indosat's tax manipulation allegation not to be taken for granted as it must be proved first.

“It's really a loss or a manipulation. Those must be differed. If it's a loss, we (Tax Directorate Genera) can't do anything. But the Capital Market Supervisory Board (Bapepam) might,” he said.

Wong Heang Tuck, PT Indosat Tbk.'s Finance Director, stated he was ready to be checked by Bapepam regarding Indosat's loss and tax deposit potential loss due to derivative transactions.

However, he denied that the losses were because of mismanagement or foreign currency speculation activities.

“Moreover, derivative transactions are not against tax rules,” he said after the nnual General Shareholders' Meeting (AGM) in Jakarta yesterday.

According to him, Indosat's derivative transactions were included in the financial statement submitted to Bapepam and the United States Security and Exchange Commission (SEC).

Indosat will continue carrying out derivative transactions until the end of Indosat's Dollar bonds I and II issuing terms.

“Indosat has the obligation of hedging at least 50 percent of the total long-term debt obligation.”

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Government Prepares CPO Export Duty Increase

2007-06-06T15:31:00.001+07:00

The government will monitor the development of cooking oil price before increasing the export duty on crude palm oil (CPO) export duty.

CPO and cooking oil producers are regarded as not yet having been optimum in terms of market operations.

“If (the ideal cooking oil price) isn't reached, we'll certainly implement (the export duty increase0” said Boediono, Coordinating Minister for the Economy, in Jakarta yesterday (5/6).

Earlier, the government had threatened that it would the raise export duty, which has been 1.5 percent up until now.

This is stated in an agreement between the government and producers that if by June 1, 2007, cooking oil prices have not reached an ideal price of between Rp6,500 and Rp6,800 per kilogram.

However, the price stabilization program, which has been carried out since March, has not yet been successful in decreasing cooking oil prices.

Currently, cooking oil prices are still between Rp8,000 and Rp9,000 per kilogram.

The government planned to implement the domestic market obligation (DMO) policy if cooking oil prices remain high.

According to Boediono, CPO producers are not yet optimum in carrying out market operations (procuring the product in markets).

This is seen from the high CPO export volume, uncontrolled domestic supply and high cooking oil prices.
“Due to increasing CPO prices abroad, we want the players in the business to hold more effective market operations,” he said.

CPO producers circle stated they are ready to procure 150,000 tons for cooking oil price stabilization program this June.

“We're ready to procure 150,000 tons. All producers are committed that the price stabilization program in June will lower prices,” said Akmaludin Hasibuan, General Chairman of the Indonesian Palm Oil Businesspeople Association, when contacted in Jakarta yesterday.

Benny Wahyudi, Director General of Agriculture and Chemical at the Industry Department, said the government will increase export duty and implement DMO policy in July, after the price stabilization program evaluation in June.

Unsuccessful price stabilization program in May was because a lot of suppliers didn't fulfill the procurement commitment,” he said.

Out of the commitment to procure 97,000 tons of CPO, around 35,000 tons had not been realized.

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Foreign Languages on Radio to be Regulated

2007-06-06T15:30:00.000+07:00

The Indonesian Broadcasting Commission (KPI) will regulate the use of foreign languages in radio programs.

This is because up to now no such regulation has yet been made.

Currently, the government only regulates the use of foreign languages on television.

M. Izzul Muslimin, a KPI member, said that there were possibilities that the use of foreign languages in radio programs will be the same as for television, that is 30 percent.

“However, perhaps there will be special criteria for radio stations that broadcast programs in foreign languages, for instance Indonesian radio programs specially broadcasted,” said Izzul yesterday (5/6).

It is expected that the regulation will be completed soon and that it does not deviate from the material in the Broadcasting Decree.

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Entrepreneurs Push for Fuel Oil Tax to be Abolished

2007-06-05T09:36:00.003+07:00

Industry players hope that the government is serious in responding the proposal to abolish the industry fuel oil value-added tax (VAT) of 10 percent per liter.

The proposal for the fuel oil tax abolition was in response to the possibility of fuel oil price hikes in line with the increase of the Mid Oil Platts Singapore (MOPS) rate.

“Fuel oil price hikes would clearly put pressure on the industry's position. Therefore, we need policy alternatives to help smoothen the industry's cash flow,” said Thomas Darmawan, Head of Food and Beverages Businesspeople Association Chairman, yesterday (3/6).
On June 1, 2007 Pertamina increased fuel prices.

Diesel is up five percent from the previous level of Rp5.522 per liter to Rp5.797 per liter.

Pertamina increased the price in accordance to the price standard in Singapore of between 2.9 and 12.0 percent compared to the previous period.

The abolition of industry fuel oil tax, said Thomas, would not lower the state's revenues.

The reason for this is that 10 percent VAT will be imposed on ready-goods products.

“With production being smoother, the amount of production goods and the government's VAT will also increase,” said Thomas.

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New Economic Policy Package Being Prepared

2007-06-05T09:36:00.001+07:00

The government will cut the time it takes to issue a business license to 30 days from the previous 197 days.

This decision is one of the policies included in a new economic package that will be launched in a few days’ time.

This package is a development of the economic package that was issued last year.

Boediono, Coordinating Minister for the Economy, explained there are four important points in the package.

These are: investment climate improvement, infrastructure development, financial sector repair and small- and medium-scale enterprise (SME) development.

“In terms of investment climate, there is a reduction in the time involved in processing business licenses,” said Boediono during the Investor Forum II in Jakarta yesterday (30/5).

The Gadjah Mada University (UGM) Economy Faculty Professor emphasized that this economic package was better compared to the previous one, especially in terms of regulations, license processing and taxes.

Financial and non-bank sectors, such as capital market and insurance, will also be improved.

Unlike the previous package, the new one will also discuss SMEs.

M. Ikhsan, a special member of staff of the Coordinating Minister for the Economy, said that previously SME development was discussed in separate package.

However, this time the government will discuss it in one package.

M. S. Hidayat, Head of the Indonesian Chamber of Trade and Industry (Kadin), said he hoped that the new economic package would be more concrete and could be realistically implemented.

“If the government has issued policies, it must be ready to realize them,” Hidayat when contacted by Tempo yesterday.

He also he hoped that the economic package was not like the previous one, which was only a concept.

On the occasion, Boediono also focused on the flow of funds in the capital market.

According to him, flow of funds in the capital market must not always be separated from the real sector.

He cited the State Debt Securities (SUN) and Bank Indonesia Certificate (SBI) trade transactions.

Funds withdrawn by the government from these bonds trades were used for infrastructure development.

Boediono also said there was no need to worry about the capital market's fund flow reversal trend.

The reason for this was because Indonesia's current economic system was already more prepared compared to the time of the economic crisis in 1997.

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Crude Palm Oil Policy to be Effective from June 1

2007-05-30T16:35:00.001+07:00

Crude palm oil (CPO) producers are to be obligated to set aside some of their products for domestic needs.

The domestic market obligation (DPO) policy will come into effect as from June 1, 2007.

“The DPO implementation is a mandate of the State Decree on Plantations,” said Anton Apriyantono, Agriculture Minister, after accepting bird flu vaccine aid from Chinese government at the Agriculture Department building, Jakarta, yesterday (29/5).

“(The implementation provision) is the Agriculture Minister Decision for a start,” he said

Anton explained that for the time being, the DMO policy was being implemented in order to fulfil domestic cooking oil needs because cooking oil is one of the nine staple household goods.

Therefore, CPO stocks are prioritized for domestic needs.

“It's unfortunate (for producers) if the price abroad is high, but we limit it here,” said Anton.

On the other side, in order to secure domestic stocks, the government cannot determine the price.

“We still leave the price to the market mechanism,” said Anton.

Regarding the CPO quota per producer, he went on to say it will be determined later with the Industry and Trade Departments.

“It can't be set by us alone,” said Anton

What is certain is the minimum limit being calculated based on the company's tax payment and amount shipped abroad.

Anton said that the DMO policy is effective even for companies associated with Malaysia.

Fahmi Idris, the Industry Minister, instead stated that the DMO policy for fulfilling domestic palm oil need will be effective by the end of the month.

He explained domestic CPO needs reach 4.5 million tons per year.

“So the obligation (DMO) amount is between 4.5 million to 5 million tons per year,” he said, on Monday (28/5) at the Vice President's office, Jakarta.

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Prosecutor Rejects Australian Expert Witness’ Statement

2007-05-30T16:34:00.000+07:00

The public prosecutor in the review trial of the illegal drugs case involving Australian citizens--Tan Duc Tan Nguyen, Si Yi Chen and Matthew James Norman—has rejected an expert witness from Australia.

According to prosecutor Olopan Nainggolan at the Denpasar District Court, yesterday (29/5), the statement of Professor James R.P. Ogloff from Monash University was considered not to be relevant with the trial materials.

In his statement, Oglof said that during the last 30 years the number of countries which still implement death penalty continues to decrease.

The prosecutor also objected to the statement because the permit from the Australian Justice Minister for Ogloff was only sent by e-mail the print-out of which was not submitted during the trial.

The convicts' lawyer, Erwin Siregar, stated he brought a copy of Australian Supreme Court's statement that explained about Ogloff's whereabouts.

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MoU Must be Reviewed, Indonesian Workers in Malaysia Suffering Losses

2007-05-29T10:15:00.001+07:00

A number of Indonesian migrant workers activists have asked the government to review the Memorandum of Understanding (MoU) with Malaysia signed in Bali in 2006.

The agreement is regarded as being detrimental to Indonesian citizens working as migrant labors.

Miftah, Chairperson of the Indonesian Migrant Workers Association, said that under the MoU, employers were allowed to seize employees’ passports.

This was despite passports being individual identities which cannot be held by anybody except police and immigration officers.

“But the government easily gives permission that passport is submitted to employers or agents in Malaysia,” Miftah told Tempo yesterday (27/5).

The policy that allows employers to hold passports, said Miftah, actually triggered the large number of trafficking cases.

It is not surprising therefore that the rights of Indonesian workers in that country are often violated.

For example, torture, unpaid salary, prohibition to marry at work place and impediments to meet family members.

“All are human rights violations,” said Miftah.
Anis Hidayah, Executive Director of Migrant Care, questioned the deportation policy carried out by Malaysia.

According to Anis, a lot of Indonesian workers are to be deported due to the wrong recruitment system in Indonesia.

“Indonesia should have been able to struggle to remove the deportation option, and fight for legalization. The documents are legalized because the laborers there actually already have jobs.”

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Tangguh Field's Gas for America Can Be Transferred to Other Buyer

2007-05-29T10:14:00.000+07:00

The sales of some liquefied natural gas (LNG) from Tangguh gas field, Papua, to Sempra, United States, can be transferred to another buyer.

The transfer will be carried out if the LNG sales price is higher than that of Sempra’s.

Eddy Purwanto, Deputy of Marketing and Finance at the Upstream Oil and Natural Gas Business Executing Body, emphasized that the gas transfer from Sempra can be done to any other buyer.

“As long as the sales price is better than Sempra’s,” he told Tempo last weekend.

Based on information received by Tempo, gas sold to Sempra will be transferred to a buyer from Japan.
The reason is, Sempra's LNG facility was built quicker than first planned, in mid 2008.

Sempra signed Tangguh's 20 year gas purchase contract for a volume of 3.7 million tons at the price of US$5.94 per mmBtu.

Eddy went on to say, that the transfer of gas that was bought by Sempra to another buyer has compensations.

“Sempra will obtain certain compensations,” he said.

However, when asked whether the compensation was a penalty that the government must pay, Eddy did not give any answer.

Kurtubi, an oil and gas observer, said that the Tangguh gas sales price, which is under the average gas sales price from Badak refinery in East Kalimantan, will not result in any revenues for the state.

This is because, he said, with investment totaling US$6.5 million and the revenues totaling only US$8.5 billion for 25 years, all revenues are only sufficient to cover the investment costs.

“So what does the state obtain?” he said to Tempo.

Currently, the gas sales contract amounts to 2.6 million tons to Fujian, China for 25 years, with an average price of US$3.35 per mmBtu.

The contract with SK Power Korea amounts to 0.55 million tons for 20 years with US$3.5 per mmBtu sales price.

The contract with Posco Korea 0.55 million tons for 20 years with US$3.36 per mmBtu sales price and Sempra (West Coast, US) 3.7 million tons for 20 years with US$5.94 per mmBtu sales price.

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Supreme Court Annuls Mystic Programs Provision

2007-05-25T13:03:00.002+07:00

The Supreme Court has passed the judicial review proposed by the Association of Indonesian Private Television Stations (ATVSI) against the Indonesian Broadcasting Commission's (KPI) decision on the broadcasting performance guide and broadcasting program standard.

KPI must revoke the provisions, including mystic and pornographic television programs.

ATVSI Chairperson Karni Ilyas acknowledged having received the Supreme Court's decision recently.

“It was already sent to the Association's office this afternoon (yesterday). It was only the summary, the details will follow,” she said when contacted by Tempo yesterday (23/5).

In the decision, the Supreme Court gives three month time for KPI to revoke the letter no. 009/SK/KPI/8/2004.

If within three months the letter is not revoked, the provision will not have any legal force.

According to Karni, actually from the aspect of content, the association agrees with KPI provision.

“We agree that programs with mystic and porn nuance must in fact be limited,” he said.

According to him, the association's claim is more because KPI made the provision earlier than the government.

“In addition, KPI regulates the sanctions. Through the sanction is already regulated in the Broadcasting Decree,” he said.

In article 57 of the decision, for example, factual programs with occult, paranormal and black magic themes may only be broadcasted between 10pm and 3am.

The sanctions stated in article 77 are the forms of written notice, program temporary halt, duration
limitation, fines, freezing television program, turning down license extension up to television station's license revocation.

These sanctions are what the association considered as too heavy.

KPI acknowledged it will study the Supreme Court's decision.

According to KPI member, Don Bosco Selamun, the provision they made for all television stations including TVRI (state-owned television station), is normal.

“Because KPI is given the job in the Broadcasting Decree to protect the society from violence, pornography, sadism and mysticism,” he said.

According to Don Bosco, this KPI provision is different from ATVSI's code of ethics.

“ATVSI's code of ethics are valid for the internal, KPI's decision is general,” he said.
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World Health Assembly Grants Indonesia's Demand

2007-05-25T13:03:00.001+07:00

The World Health Assembly, during the 60th meeting in Geneva, Swiss, granted Indonesia's request for a more transparent mechanism as regards sending bird flu virus samples.

Because of this, developed countries will no longer be able to take advantage of poor countries attacked by bird flu.

“The resolution will bind all members of the World Health Organization (WHO),” wrote I Nyoman Kandun, Director General of Disease Control and Environmental Improvement at the Health Department, in a short message to Tempo yesterday (23/5).

Earlier, Indonesia refused to send H5N1 virus samples to the WHO's collaboration laboratory.

The reason for this is the virus, that must be given freely by infected countries, will later be used for research, including for producing bird flu vaccines.

The problem is, the vaccine made by developed countries will then be sold at an expensive price to the infected countries.

“Bird flu virus is provided free from developing countries, but medicinal companies take on a patent on the vaccines and sell it at an expensive price,” said Health Minister Siti Fadilah Supari.

According to Kandun, in the future the resolution will be followed up with cooperation among governments and among divisions.

The cooperation is aimed at revising the term of reference and documents on virus shipping.

“Virus shipping must be done transparently, responsibly and beneficially for all sides in maintaining the world's health,” he said.

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Indonesia: Market for China's Export Product Remainders

2007-05-24T12:17:00.002+07:00

Indonesian domestic product industries are losing the competition against China's imported goods in the domestic market.

The goods from China which enter Indonesia are export remainders.

Cyrillus Harinowo, BCA's Independent Commissioner, said most of China's goods in Indonesia are export goods remainders.

“So the prices are much cheaper,” he said during the “Dragons at Your Door: China's Position in the World Trade Course and How Indonesian Entrepreneurs Response China's Excellence” discussion yesterday (21/5).

Almost all of Chinese exports to Indonesia are export product remainders sold at a very low price.

It is estimated that Chinese products that enter Indonesia amount to 10 percent of China's total exports.

Cyrillus asked that domestic producers make goods which can compete with China-made products.

This is because tariff and non-tariff impediments for restraining the export goods remainders are also not effective.

“It's difficult to face such goods,” said Cyrillus.
Imposing a 100 percent import duty, he said, would not influence the abundance of Chinese products.

The reason for this is that Chinese products will still be cheaper than the normal prices on the international market.

Cyrillus suggested that producers group together to produce medium quality products in order to face the invasion of Chinese products.

This is because Indonesia can export more natural resources products especially energy source and agriculture products that China does not have.

The University of Indonesia's Chinese Study Center Head, Ignasius Wibowo, said that productivity of workers in China is very high, so China can produce cheap products.

“No bureaucracy impediments and production costs are much cheaper. China has managed to build industrial centers,” he said.

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World Bank Supports Freedom of Information Bill

2007-05-24T12:17:00.001+07:00

The public being ably to access easily information from governmental institutions is considered as one of the important factors in advancing corruption eradication.
This was conveyed by World Bank communication officer, Ahmad Sukarsono.

“Indonesia already has good instruments for corruption eradication, but without public open access, i believe corruption eradication will be more difficult,” said Ahmad during the Workshop of Access to Obtain Information and Good Governance in Indonesia at Le Meridien Hotel, Jakarta, Tuesday (22/5).

According to Ahmad, the Freedom to Obtain Public Information (KMIP) Bill which is being discussed by the House of Representatives (DPR) will be the oxygen for corruption cases in Indonesia.

World Bank as a financial organization which often provides loans, supports this KMIP Bill being passed.

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Medicine Prices in Indonesia Extremely High

2007-05-23T10:19:00.001+07:00

The public buys medicine with a price that is actually higher than the standard price. This fact is rarely realized because the medicines are needed and the consumers are not given an option to use other medicines.

“Patients are often deceived,” said the Head of Indonesian Health Consumers Empowerment Foundation, Marius Widjajarta, in Jakarta yesterday (21/5).

According to Marius, the foundation he is leading has carried out a survey in 25 hospitals in Indonesia. The result is the costs expended by patients for medical devices and medicines reach 60 to 70 percent of the total cost. “This isn't natural. Patients should only spend 30 percent of the total cost for buying medicines,” he said.

Marius assumed that the ruse against patients is practiced by pharmaceutical companies and doctors who give the prescription. Pharmaceutical companies set a high price for medicines they produce. “The difference can be 200 percent of the generic medicines price,” he said.

It is very rare that patients refuse a prescription given by a doctor. In the meantime, doctors have a motive that patients buy the medicines they recommend. “Pharmaceutical companies give commissions to doctors. The commission is a reward as the doctors prescribe the medicines they produce,” said Marius.

This sham actually does not have to happen if the government's role in monitoring the labeling of medicines runs well. The government must also issue a regulation to determine the price of branded medicines.

Director General of Pharmaceutical Service and Medical Device Improvement at the Health Department, Richard Panjaitan, said that the government does not have the authority to determine the prices of branded medicines.

The government is only authorized to determine the prices of generic medicines to be consumed by the public. “For determining medicine’s price, a law is necessary. Now the draft is being composed by us,” he said.

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AGO Reopens BPPC Case

2007-05-23T10:17:00.000+07:00

The Attorney General's Office (AGO) will once again investigate the alleged corruption of the Coordination Body and Clove Marketing (BPPC) which involved Hutomo Mandala Putra a.k.a. Tommy Suharto. The investigation is the AGO's priority as it is considered as the case with the fastest verification process compared to the other Tommy's cases.

“The order to begin investigation was issued on May 7,” said Director of Criminal Act Investigation, Muhammad Salim, yesterday (21/5).

Salim explained that the indications of corruption in the BPPC case are strong. He said these include the requirement that BPPC did not carry out as regulated by the Presidential Instruction No. 1/1992. However, he did not explain it further.

Salim also stressed he will examine all sides related to BPPC, including the former Main Village Unit Cooperative Chairman, Nurdin Khalid. The AGO team, he said, is formulating the role of the main cooperative chairman.

AGO's Civil Director, Yoseph Suardi Sabda, said the alleged corruption in BPPC can be made as a means of disbursing Tommy Suharto's money in Banque Nationale de Paris (BNP) Paribas of the Guernsey branch by the Indonesian government. If the investigation states Tommy's money must be seized, Yoseph believes that the money in Guernsey can be used to pay the compensation. The disbursement can be done through the civil and criminal procedure.

Tommy's lawyer, O.C. Kaligis, is of the opinion that AGO's measure is only a manipulation and seems to be forced. “The main purpose is only the verification of the Guernsey trial,” said Kaligis when contacted by Tempo.

A member of the Indonesian Corruption Watch (ICW) working body, Adnan Topan, is optimistic about the AGO's scenario. “The case hasn't expired. AGO can even name Tommy as a suspect,” he said.

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“England Must Oversee Origins of Oil Palm”

2007-05-21T16:50:00.001+07:00

England, as the biggest palm oil importer in the world after the Netherlands, must set up tight regulations on the origins of palm oil, which is to be a bio-fuel base commodity. This is because the development of a palm oil estate is closely related to deforestation and the orangutan slaughtering.

“We hope that the palm oil plantation will not destroy forests or habitats,” said Director of the Centre for Orangutan Protection (COP), Hardi Baktiantoro, during a rally in front of the British Embassy, Wednesday (16/5). In the rally, four COP activists wore the uniform of plantation officers and carried orangutan puppets, also fuel jerry cans.

Throughout 2006, said Hardi, the rescue team from the Forestry Department and the Nyarumenteng Orangutan Reintroduction Center, Central Kalimantan, managed to save 368 orangutans from a number of palm oil plantations. The plantation workers generally consider orangutans as pests as they eat palm oil leaves. They also chase orangutans from palm oil plantations. As a result, orangutans lose its habitats, water and food sources.

“This cruelty is a violation against the Decree No. 5/1990 on Natural Resources and Ecosystem Conservation. The perpetrators could face five year imprisonment or Rp100 million fine,” he said.

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Producers Lower CPO Sales Price

2007-05-18T08:35:00.000+07:00

The producers of crude palm oil (CPO) lowered the sales price at the factory level to Rp6,100 per kilogram starting yesterday (14/5). On Friday (11/5), the CPO sales price was Rp6,500 per kilogram.

By the decrease of the CPO sales price at factory level, it is expected that the price of cooking oil can decline to between Rp6,500 and Rp6,800 per kilogram, as expected by the government. The national average retail price of cooking oil is still Rp7,900 per kilogram.

This was an agreement between the government and CPO and cooking oil producers during the cooking oil price evaluation meeting at the Trade Department yesterday.

In the agreement in early May with the producers, the Trade Department threatened it will impose sanctions in the form of a hike in CPO export levies if producers could not lower the cooking oil price to Rp6,500-Rp6,800 on June 1.

Industry Minister, Fahmi Idris, said that producers were ready to supply between 100,000 and 150,000 tons of CPO to Java and outside Java. “As much as 80 percent goes to Java,” said Fahmi after the meeting.

Director General of Agriculture Products Marketing and Processing at the Agriculture Department, Djoko Said Damardjati, said yesterday that producers who are not in the Indonesian Palm Oil Entrepreneurs Association were also willing to provide 10,000 tons of additional CPO, which only awaits the approval of company leaders in Malaysia.

The price of cooking oil up to last weekend in several regions was still high.

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Some State Officials Do Not Pay Tax

2007-05-18T08:34:00.000+07:00

The Tax Directorate General revealed several names of state officials who have not paid tax or submitted the Yearly Information (SPT) of Tax. “They also don't have a personal tax number (NPWP),” Tax Director General Darmin Nasution told reporters in Jakarta, yesterday (14/5).

Although he has pocketed the names, he refused to explain the identities of state officials who did not pay tax. He was also reluctant to give the details of institutions or departments of the officials who did not report their tax obligation by the Tax SPT because he will first report the cases to President Susilo Bambang Yudhoyono.

Regarding the names of civil officials of echelon IV up to I who neither have NPWP nor submitted Tax SPT, they will be reported to the respective ministry or state institutions. “This is a part of tax intensification to optimize the state revenue,” he said.

A House member, Andi Rahmat, said that the signals of state officials not paying tax have already been there a long time and this could happen. However, there is a possibility that the officials did not intend to break the law or avoid the obligation to pay tax.

The State officials generally have NPWPs. The problem is, he said, they are not accustomd to filling out Tax SPT. “Perhaps many ministers don't know how to fill out Tax SPT,” he said while mentioning that he already filled out his Tax SPT.

Therefore, he said that the Tax Directorate General must intensify the campaign of self assessment of tax much more. “Everybody must have an NPWP, especially those whose income exceeds the income that is tax-free,” he said.

He was sorry that Indonesia does not have a solid system yet like European countries which already implemented NPWP ownership. “In Europe, even people who want to make a call must show his or her NPWP, so they comply with the tax system,” he said.

He still supports the publication of the tax embezzlers. “The Tax Directorate General's findings must be revealed soon so that people feel the obligation to pay tax.”

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tempo

Tax Officials to Hunt Down Sukanto Tanoto

2007-05-18T08:33:00.000+07:00

The Tax Directorate General at the Finance Department will concentrate on hunting down the main players in the Asian Agri Group tax embezzlement case, including the company's owner Sukanto Tanoto and the other shareholders.

Mochamad Tjiptardjo, Director of Tax Intelligence and Investigation at the Finance Department's Tax Directorate General, did not deny the possibility that the Asian Agri's owner could be legally charged.

”If there is proof, then why not? This is already classified as a criminal case,” said Tjiptardjo in Jakarta yesterday (15/5).

“The numbers of the suspects and the amount of the state's losses may increase,” he said

When asked the same question, whether or not the Tax Directorate General would also hunt down Sukanto Tanoto, on a separate occasion, Finance Minister Sri Mulyani Indrawati said, “We'll see how the Tax Directorate General handles the case. But clearly, the government will chase after payment of all the tax debts plus the fines.”

On Monday (14/5), the Tax Directorate General already stated that five Asian Agri Group directors were suspects of tax embezzlement. The five persons' initials are LA, WT, ST, TNK and AN.

Asian Agri is the second biggest holding company in the Grup Raja Garuda Mas – a company owned by Sukanto Tanoto, Indonesia's richest person in 2006 according to Forbes magazine.

According to Tjiptardjo, 18 members of the Tax Directorate General investigation team are working domestically and abroad to search for new findings in the case.

The legal base being used to charge the embezzlers, including those who asked for the manipulation to be carried out, he said, was Decree No. 16/2000 on Tax General Provisions and Procedures.

So far, according to him, the case development was only as far as the involvement of the five Asian Agri directors.

Signs regard new suspects have not yet been reached at this level of the investigation.

It is so far estimated that the state's losses amount to Rp786.3 billion, or around 30 percent from the total funds marked-up by the company which reached Rp2.62 trillion, but this amount could rise.

According to M. Salim, Director of the Attorney General's Office Investigators, the AGO is still analyzing public complaints about Asian Agri’s alleged corruption and tax embezzlement practices.

“We just received the reports last week,” said Salim.

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tempo

Japan Offers Technology for Stopping Lapindo Mud Flow

2007-05-12T08:40:00.000+07:00

The President Director of Katahira Engineering, Okumura, explained today (11/5) about the technology for ‘control cofferdam’ for stopping the Lapindo hot mudflow in Sidoarjo. This technology will replace the method of stopping the mudflow using aseries of concrete balls .

According to Public Works Minister, Djoko Kirmanto, mud coming out of the center will be blocked by dams. The mud will be channeled to the Porong River and the sediment will stay inside the dam through iron pipes circling the center.

“The mud will be the counterweight for the mud hole. the pressure of the mud from the outside and the inside will be in balance so it can reduce the mudflow,” said Djoko after attending the closed meeting led by President Susilo Bambang Yudhoyono.

The dam will be made by arranging the iron pipes in a circle around the center. The diameter of the iron pipes dam is estimated to reach 120 meter. The pipes' height is 40 meters.

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source

11 Japan Loan Bank Projects Delayed

2007-05-11T13:41:00.000+07:00

The National Development Planning Agency (Bappenas) has discovered that the realization of 11 infrastructure projects funded with loans from the Japan Bank for International Cooperation has been delayed.

“The delayed projects belong to the Public Works Department, the Transportation Department, Cipta Karya and Bina Marga,” Benedictus Benny Setiawan, Director of Development Funding Monitoring and Evaluation told Tempo at his office, Jakarta, yesterday (9/5).

Benny explained that the projects were delayed because of land acquisition and project procurement.

Four projects were delayed because of land acquisition problem, Batanghari Irrigation; North Java Corridor Flyover, Tanjung Priok Access Road and Double Double-Track.

The projects which were delayed by procurement are Lower Solo River Improvement, Komering Irrigation Project, PTSL for Water Resources Development and the Railway Electrification and Double Double-Track.

The projects' procurement was hampered due to land acquisition.

The Dumai Port project was delayed by the Indonesian Military (TNI) Navy’s quay demolition.

The problem was settled in the end of 2006, but the process must be accelerated because it is likely to not to be completed on schedule.

The Maritime Education and Training Improvement project is also not in accordance with schedule due to design alterations.

The constraints resulted in the absorption of loans being low.

Benny said that not all of the loans from the Japan Bank were absorbed.

The US$5.95 billion in loans from the Japan Bank is equivalent to 40.8 percent of the total foreign loans for infrastructure projects.

Funds from Japan Bank are allocated for 51 projects.
The delay in projects and fund absorption did not make the government pay commitment fee to Japan Bank.

However, infrastructure facilities cannot be enjoyed soon by the general public and economic costs have occurred.
“Roads were ruined due to high transportation cost,s so goods' prices are also high,” said Benny.

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tempo

Government to Accelerate SOE Privatization

2007-05-10T08:10:00.000+07:00

The government will accelerate the privatization of several state-owned enterprises (SOEs) this year.

“Privatization that has already been approved by the House of Representatives (DPR) must be speeded up,” Sofyan Djalil, SOE Minister, told reporters at the Presidential Office, Jakarta, yesterday (7/5).

Sofyan was installed as SOE Minister recently, replacing Sugiharto in the cabinet reshuffle announced by President Susilo Bambang Yudhoyono, on Monday (7/5).

In addition to BNI, he said that SOE privatizations to be accelerated include PT Wijaya Karya and PT Jasa Marga.

“As regards Garuda (Indonesia), I don't know yet,” said Sofyan

According to him, another privatization that must be accelerated include further divestment and the rights issue of PT Bank Negara Indonesia because this has already have approved by DPR members.

“With right issue to market, capitalization will be strong,” said Sofyan.

DPR in fact approved BNI privatization using a secondary public offering of 15 percent and rights issue of 15 percent with an additional option of five percent.

Maximum divestment is 35 percent and minimum 30 percent.
Currently, 99.17 percent of BNI shares is owned by the government and the remainder by the public.

Divestment of BNI shares is aimed at fulfilling privatization target in the State Budget by Rp3.3 trillion.

Further BNI divestment is targeted to be realized in the first half of this year.

Wijaya Karya will carry out an initial public offering (IPO) of 35 percent with targeted proceeds of Rp500 billion.

As regards Jasa Marga, it will offer 30 percent shares in an IPO, with proceeds target of Rp2 trillion.

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tempo

State Suffers Tens of Million Rupiah Losses Due to Fictitious Tax Invoice

2007-05-09T17:00:00.000+07:00

Up to early May 2007, the Tax Directorate General has found nine cases of fictitious tax invoices which caused the state to suffer more than Rp20.1 billion in losses. The five fictitious tax cases were in Medan, North Sumatra; one in Jambi; two in Lampung and one in Jakarta.

The Director of Tax Intelligence and Investigation, Mochamad Tjiptardjo, said in Jakarta yesterday (7/5) that tax officers were also finalizing the investigation into the fictitious tax invoice carried out by a consultant office in Jakarta. “We continue concentrating on this case as the loss is certainly higher (than the findings in the nine cases),” he said.

The findings in the fictitious tax invoice cases, he said, were based on the complaints, reports and information from the general public to the tax investigation officers during 2007. The mode of operation includes preparing annual notification letter on behalf of the taxpayer's name with the claim amount already arranged based on the taxpayer's request, also issuing and using fictitious tax invoices.

Based on the administration records of the Tax Directorate General, he said taxpayers, either a body or individual, who have become suspects did not have tax numbers or never submitted the annual income tax notification.

He stressed that every action of using fictitious tax invoices is subject to imprisonment in line with Article 39 Paragraph 1, Letter a,b and c in conjunction with Article 43 Paragraph 1 of the Decree No.16/2000 on Tax General Provisions and Procedures.

The Head of the Tax Investigation Sub-directorate, Ilhamsyah, said the perpetrators who abused the fictitious tax invoice have become suspects.

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tempo

Private Sector Compete in Guaranteeing Infrastructure Projects

2007-05-08T08:32:00.000+07:00

Private sector and international financial institutions have stated their interest in guaranteeing infrastructure projects such as the monorail, toll roads, harbors, airports and electricity generating plants.

“Many are interested,” said Mulia Nasution, Secretary General of the Finance Department, on Friday (4/5), at the Finance Department building, Jakarta.

They, according to Mulia, want to participate in providing funds for guaranteeing projects which later will be combined with the revolving fund prepared by the government.

However, Mulia did not mention the amount of the guarantee funds from the private sector and international institutions that can be gathered.

As regards institutions that directly stated their interest, they include the World Bank, the Asian Development Bank (ADB), banking guarantee institutions and financial institutions for national non-banking funding.

“There has been preliminary dialogue (the government) with them.”

The Transportation Department's budget will also be raised by 49 percent for 2008 and the total of the department's indicative allocation limit plan is Rp15,734.52 trillion.

“The development of transportation infrastructure has had a multiplier effects on the economic sector,” said Hatta Rajasa, Transportation Minister, Friday, during the “National Development Planning 2007 Dialog” at Bidakara Hotel, Jakarta.

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tempo

Government Orders Lapindo to Pay Compensation Quickly

2007-05-07T11:42:00.000+07:00

The government ordered PT Minarak Lapindo Jaya to pay compensation to locals starting this Monday. This was included in the points of agreement resulting from the dialog between the government, hot mudflow victims and Lapindo, Wednesday (2/5).

The dialog that went on from 3pm to 9.30pm was attended by the government – comprising the Sidoarjo Mudflow Handling Agency and the National Land Agency- PT Minarak Lapindo Jaya; Head of Sidoarjo Regional Representatives Council (DPRD); Porong District Chief, Tanggulanging District Chief also representatives from four villages – Jatirejo, Renikenongo, Kedungbendo and Siring.

“Compensation must be paid as soon as everything has passed the verification of notary or officials empowered to draw up land deeds (PPATK),” said Head of the Sidoarjo Mud Handling Agency Advisory Board Chairman, Bachtiar Chamsyah, during a press conference after the tripartite negotiation, at the Social Affairs Department, Jakarta, Wednesday.

In addition, the agreement says if a resident does not have the building permit (IMB), the building width will be based on the Sepuluh Nopember Technology Institute, Surabaya's (ITS) data. Then, if the ITS data is lacking, the building width will be based on the letter of resident's statement legalized by the government based on the Government Regulation No. 14/2007.

Sidoarjo DPRD Chairman, Arly Fauzi, acknowledged he was not satisfied with the agreement. This is because there has not yet clarity about the definition of 'certificate legalization by the government.'

One of the residents' representatives, Khairul Huda, also said he was dissatisfied with the agreement.

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tempo

Deflation Increase Possibility of BI Rate Decrease

2007-05-04T09:40:00.000+07:00

It is possible that the Bank Indonesia's interest standard (BI Rate) will decrease due to deflation (goods and service's price decreases) last April.

It is estimated that by the end of the year, the BI Rate could reach 8.5 percent.

“The room for a BI Rate decrease is larger,” said Burhanuddin Abdullah, Bank Indonesia (BI Governor) in Jakarta yesterday (2/5).

Deflation, he said, also enlarged the possibility of reaching the inflation target of six percent plusor minus one percent.

“The possibility to reach the inflation target is larger,” he said.

On Tuesday (1/5) the Central Statistic Bureau (BPS) announced there was 0.16 deflation, better compared to in March which underwent inflation of 0.24 percent.

Of 45 cities surveyed by BPS, 30 cities or 66 percent underwent goods and service's price decreases, while the remainders underwent inflation.

The deflation was due to the decrease of prices shown by the decreasing index of food category (11.30 percent) and leisure and sports education (0.03 percent).

The causes of deflation include the drastic decrease of rice and red chili prices as also other vegetables.

In the State Budget 2007, the government targets annual inflation to be 6.5 percent while BI's target is six percent plus-minus one percent.

Currently, the BI Rate is at the level of nine percent.
During the meeting of Governors Board in early April, the central bank did not lower the interest standard as there was a threat of inflation.

Boediono, Coordinating Minister for the Economy, stressed that the deflation in April was extreme.y good agreeable because it strengthened the government's optimism in maintaining economic stability.

Therefore, the government will maintain the low inflation rate maximally in the following months.

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tempo

Advertisement Regulation Violators Threatened with Multiple Sanctions

2007-05-03T09:52:00.000+07:00

The Information and Communication Minister Regulation on the Domestic Resources Usage for Advertisement Products Broadcast by Broadcasting Institution, is effective starting yesterday (1/5).

People who violate this new regulation are threatened with multiple sanctions.

Sofyan Djalil, Information and Communication Minister, said the regulation was issued in order to advance the domestic industry's and resources competitive power in broadcasting.

The regulation is in fact already included in the Article 46 Point 11 of the Decree No. 32/2006 on Broadcasting.
Unfortunately, the law does not explain in details about the definition of domestic resources.

As a result, a large number of advertising groups violated the law.

“In practice it’s extremely free,” said Sofyan in Jakarta yesterday (1/5).

According to Emmy Yuhasari, a member of Information and Communication Minister's expert staff, the use of local resources in the law is arranged from the process of production to post-production.

From the aspect of acting, the provision is effective for models, actors, supporting-actors, directors, creative directors, photography directors, lighting directors, production officers, camera persons, audio operators, production assistants, back sound operators and tele-cinema operators.

It is the same with on-line editors, off-line editors, effect editors, graphic artists, animation artists, musicians, music arrangers, effect persons, recording operators, technical advisers, stunt and audio as also visual 3-D special effect editors.

In the implementation, said Emmy, every advertising agency must sign a letter of statement that the advertisement has fulfilled the requirements.

The letter must be handed to television stations.
If anyone is found to have violated the requirements, Emmy said the government will impose multiple sanctions.

First, administrative sanctions that forbids broadcasting of the advertisement on television and radio station.
The agency will be charged under the falsehood article of the Criminal Code.

Banking Sector Shares Hunted Again

2007-05-02T10:54:00.000+07:00

Investors at the Jakarta Stock Exchange (JSX) were hunting banking sector shares during last week.

The maneuvers were made in anticipation of a BI Rate decrease after the Central Bureau of Statistics (BPS) indicated that there will be deflation this April.

Market players targeted shares of PT Bank Mandiri, PT Bank Rakyat Indonesia, PT Bank Central Asia and PT Bank Danamon which afterwards triggered increases in other banks’ shares.

During last week, shares of Bank Mandiri increased by 7.69 percent from Rp2,925 to Rp3,150 per share; BCA by 5.83 percent from Rp5,150 to Rp5,450; Bank Danamon by 4.62 percent from Rp6,500 to Rp6,800; and BRI by 2.86 percent from Rp5,250 to Rp5,400 per share.

Rafdi Prima, an analyst from PT Sriwijaya Permana Sekuritas, said that the increases occurred because banking shares will still be prospective within the medium term.

Nonetheless, according to him, share price of the sector is already overbought with quite high earnings per share (EPS).

“Today, the banking PER is approaching a P/E market ratio by 23 times. So, investors should be careful,” he said.
According to Rafdi, investors should see the “number” in the four banks' share.

As for BRI shares he said, investors should first of all carry out corrections.

“If the level of Rp5,650 were passed, prepare to buy for it has the potential to reach Rp6,000 per share,” he said.

Christine Salim, Head of Research at PT Samuel Sekuritas, has also advised investors to control purchase accumulation of banking shares.

She said that this was because blue chip shares were sensitive to profit-taking.

“Investors should wait for priced to be corrected first if they intended to take a positive buying-position in banking shares,” said Christine.

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tempo

Extradition Agreement: Fugitives to be Announced After Ratification

2007-05-01T19:04:00.000+07:00

The Attorney General’s Office (AGO) will announce the names of fugitives who are wanted for corruption and are suspected to have escaped to Singapore, after the extradition agreement is ratified by the House of Representatives (DPR). “The fugitives’ names will be announced. It depends on when the ratification is,” said the Duty Executing Officer of the Deputy Attorney General for Special Criminal Acts, Hendarman Supandji, at his office yesterday (30/4).

According to Hendarman, now the AGO is still inventorying the names of the fugitives. The standard of fugitives to be pursued, said Hendarman, are those who have been suspects, defendants and convicts, who are thought to be in Singapore. The names that AGO has pocketed, he said, are the 15 that have previously been named, including Agus Anwar, Irawan Salim, Sjamsul Nursalim, Atang Latief, Sukanto Tanoto, Sudjiono Timan and Bambang Sutrisno.

The Indonesian and Singaporean governments signed an extradition agreement, last Friday. The important points in extradition, are it’s retroactive for 15 years; Indonesian corruptors who changed citizenship can be extradited and an extradition request is handled through the trial process in Singapore.

The Director of Immigration Investigation and Prosecution at the Justice and Human Rights Department, Syaiful Rachman, said that although the fugitives have changed citizenship, the fugitive status is still valid. “It is a matter of names,” said Syaiful when contacted yesterday.

However, Syaiful said that Immigration feels it is difficult tracing a fugitive who escaped abroad. This is because, said Syaiful, in addition to the immigration system that is not online, there is also a human resource limitation. “Moreover, investigation is the intelligence job,” he said.

Financial Management 2008 Investor-Friendly

2007-05-01T08:46:00.000+07:00

The government will create friendlier state financial management for investors by next year.

In its 2008 financial notes, the government will include fiscal risks including contingent liabilities, especially for guaranteeing infrastructure projects.

“With the new posts, investors' accountability may increase because the government guarantees several infrastructure projects with contingent liabilities,” said Deputy Director of Risk Management of Director General of Risk Management at the Department of Finance Schenaider C.H. Siahaan in Jakarta, at the end of last week.

Contingent liabilities emerge when the government decides to provide financial support to other entities in the economy, especially in the form of guarantees, such as payment failure and unachieved revenues.

With this system, said Schenaider, the view of Indonesia as a country with a non-investment rating will start to become more positive.

The reason for this is that investors take notice of the government's capabilities in managing risks involving any economic uncertainties that may appear.

Contingent liabilities will also support creditors in disbursing loans, especially for vital infrastructure projects.

“Business partner will also be more certain about working with Indonesia,” said Schenaider.

In previous government management, contingent liabilities were more focused on natural disasters.

Starting from 2008, the liabilities that could occur in the future will be covered under contingent liabilities.
Guarantee fund will be taken from debt reserve projections with a maximal limit of 60 percent of GDP.

However, the execution will only be done when contingent liabilities have already been realized in the current fiscal year.

According to Ronald Silaban, Head of the Central for Fiscal Risks of Fiscal Policy Agency at the Department of Finance, contingent liabilities are not listed in the government's financial balance.

It is only attached in the financial notes.

“There are amounts that can be quantified, and those that cannot,” he said.

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tempo

ADB Finances for Widening Banda Aceh - Ulee Lheue Road

2007-04-28T14:01:00.000+07:00

The Nanggroe Aceh Darussalam – Nias Rehabilitation and Reconstruction Agency (BRR) will widen the lane from Banda Aceh City to Ulee Lhue, Meuraxa District. The road and bridge package construction is financed by the Asian Development Bank (ADB), that totals Rp84, 019,450, 000.

Ulee Lheu is a busy harbor area which was once ruined by a tsunami. In addition to Ulee Lheue lane, the road from Ulee Lheue – Simpang Rima (Peukan Bada Distrcit, Aceh Besar) will also be widened. The construction will cause several Java tamarind trees along the road to be cut down.

According to BRR NAD-Nias’ Director of Roads and Bridges, Eddy Mofizal, the two roads will be worked on in May 2007. In addition to roads, BRR will also build two units of bridges in Laguna and Lamjamee Villages.

Eddy said on the Jalan Sultan Iskandar Muda, the first 600 meters will be widened from 8.5 meters to 11 meters. From a distance of 600 meters to 3,600 meters (from the Punge bridge to the Laguna bridge near Ulee Lheue Mosque), it will be widened from around eight meters to 29 meters. As for the road from Laguna bridge to Simpang Rima (stretching for 4.5 kilometers), it will be widened from six meters to 14 meters.

The road reconstruction comprises dismantling, widening and ascending the structure of Banda Aceh – Ulee Lheue – Simpang Rima road. In the meantime, two bridges which have been ruined will also be built anew beside the old ones (duplication).

Basic Software Requirement for Personal Computers

2007-04-28T14:00:00.001+07:00

The following are basic software that you need to install into your computer:
1. Operation System. Most of the desktop and laptop bundled with Microsoft OS nowadays. Most user will go for Microsoft Operating System. Some computer savvy will use Linux, such as redhat, Suse, etc. For microsoft OS you need to pay few hundreds bucks as for Linux normally it's free when you download from the following links:

For Redhat Click Here
For Suse Click Here
It's possible for multiple OS setup. There are a lot of utilities available for you to do that.
2. Microsoft Office. None of the personal computer is perfect without this. It contains 4 important components: Microsoft Words, Microsoft Excel, Microsoft Access, Power Point. Since most of the users share document in the above format, you will not be able to open if you do not install them.
3.Anti Virus Software. You can easily get infected with virus if you connect to internet without them install into your computer. I get one from symantec and pay less than 100 bucks per year to keep my computer safe and sound.
4. If you need to perform web application in PHP I suggest you to download XAMPP as it's easy and all the required components come together.

Recommended Specification and Configuration for Your Computer

2007-04-28T13:53:00.000+07:00

This is a tough subject. There is no perfect and best specification. As best specification come with heavy price tag. All is depend on how you are going to use your computer and budget.
From my opinion, below are acceptable specification for general usage. With below configuration, you will be able to run most of the application without any problem. And it may not be too expensive but it may not be the cheapest you can get in town:

1. 512MB DDR or DDR2 SD RAM
2. Intel Core 2 Duo 1.86GH or AMD Athlon 64 3000+ 1.8GH
3. Seagate Barracuda 7200 rpm 160GB
4. ASUS Striker Extreme (NVIDIA nForce 680i SLI) motherboard if you go for AMD processor. Foxconn G9657MA-8EKRS2H (Intel G965) if you go for Intel processor.

What You Need to Know Before Purchasing Your Computer

2007-04-28T13:26:00.000+07:00

To get a right computer is as easy as picking a right clothes from your fashion store. It's depend on where and how you are going to use it. The same idea goes to buying a computer.
Ask yourself the following questions before getting a computer:
What will you use your computer for? Will you use it for gaming, watching movie, or just merely for surfing net?
If you are going to use it for playing game heavily, you may need to invest more on the following:
1. Memory. 1GB RAM is recommended.
2. VGA Card. A good VGA card with independent memory of 256MB is recommended. If you are using low end VGA card or mother board built in VGA card you will end up suffer from graphic delay of the game. And you lose the fun of some of graphic games.
3. Monitor. Make sure you get a monitor with high resolution and high contrast rate. 2000:1 contrast rate is sufficient.
4. DVD Burner. A DVD burner will surely help if you need to copy certain games or big data files from your game partner.
5. CPU. A moderate speed of processor is required. If you are going heavy graphic game and higher speed CPU is recommended.

For computer savvy that will use it to do some programming jobs, I will suggest to invest more on the following:
1. CPU. A CPU with 3GHz processing speed or above if possible. This will help if you install development tools for coding purpose. It will also speed up the database processing speed if you install database server in your computer.
2. Memory. 1GB RAM is recommended
3. Monitor. Do not get a monitor with high contrast and also extra bright that will reflect light from your back.
4. Put less priority on VGA card, Sound card, etc.
If you only use it for surfing net, play song and also some light gaming, I will suggest you to get a basic unit on entry level. This will surely sufficient.
Next, you need to set a reasonable budget to get your personal computer.
If you have tight budget, do not over spend on branded and high end processor. You will get some similar computer with almost the same capability but save you few hundreds more. For example, a Pentium Duo Core 3.8 GHz will cost a lot more than a Pentium Duo Core 3 GHz. However, when you really use it with 512MB memory, you may not feel it the different at all. If you are using it to surf the net, the different on opening the internet browser is just merely 0.01 seconds. You will not feel it anyway. In my opinion if you are not sure go for basic level.
3. Where will you use it? Do you need to purchase a portable laptop?
If you have better budget you may want to consider getting a portable computer. Nowadays, there are a lot of hotspots that provide free internet access. With a laptop you can access to internet from those hotspot and do your job as you are at home or office. If you are getting a laptop, try to get one with wireless network card.
If you use it for heavy gaming, a laptop may not be a choice for you. A laptop will normally have limited VGA card memory and also slower processor if you compare the price with PC. Remember, a $2000 PC will have much better specification than a $2000 laptop.
In my opinion, buy what you think it’s the best for you. Do not over spend on something that you may feel you will not use it.

Domain Name Scams: Have You Fallen for One?

2007-04-28T13:16:00.000+07:00

Have you received information regarding your domain name through postal mail? Did you receive numerous invoices regarding your domain name? Ever been stuck in a contract for well over a year? If any of the above apply to you, you may have fallen for a domain name scam.

Domain name scams occur when a domain name registrar sends you and “invoice” to renew your domain registration, but it really is an agreement to switch to their services.

Scott Karlo, founder of Internet Know How (IKH), LLC, offers these helpful tips on how prevent your company from falling for domain name scams.

Prevent Domain Name Scams by:

• Setting up automated renewals with timely advanced warnings prior to billing period. This allows you to know when a renewal date is scheduled and in turn you can ignore any other “invoices” you may receive from other companies since you know exactly how much and when your next payment is due.

• Using the registrar’s domain locking feature to protect it from being taken without authorization. This prevents registrar companies from initiating a transfer request to pull your domain to their system. By locking your domain you save yourself the time, hassle and cost of switching back away from them.

• Carefully review invoices from the registrar companies before mailing in the requested payment due. Many companies assume that the invoice is real. It passes through accounts payable, who recognize the web address, pay it. Since they are fearful of losing the domain they don’t tend to question the invoices legitimacy. Investigate who the invoice is from before paying it!

• Finding an internet consulting firm that will be able to monitor your domain names on a regular basis and keep track of renewal dates. Hiring an internet consulting firm relieves the headache of domain name scams. Your company can ignore all mailings regarding your website domain registration.

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article-emporium[dot]com

Can blogging increase web traffic?

2007-04-28T13:01:00.000+07:00

Blogging is merely keeping of a log at a website. It is a combination of the words "Web" and "log". Blogging is carried out through a blogging software that maintains the daily posts on the site. It doesn’t take long to set up blogs and once installed you can update it easily with lots of content daily.

To keep a blog is simply to maintain a page on your site where there can be daily posting of new content by the website owner or the visitors to the site. Blogging has one particular striking feature - the information there is always kept fresh as there are daily entries.

Our interest in blogs is in its search engine placement significance. Blogs can fetch you a lot of web traffic without any effort at all.

Search engines tend to rank sites with content favorably. Since a blog posts fresh content to the site on daily basis, the information at such a place is kept fresh and current making it a preferred destination for visitors. The web is about information - current and meaningful ones so as the information in the blog gets updated constantly with rich information so does the ranking on the search engines increase.

Some blogging tools worth looking into include:

Blogger.com
Blosxom
Drupal
Geeklog
LittleHJ
ModBlog
Movable Type
PHPNuke
pMachine
Radio UserLand
WordPress

Like in traditional sea, your blogging should be around a central theme or keyword. Too many themes may dilute the consistency of your content and score you down the lane of SEO. Sticking to a central theme will help you to enrich the content of your pages and get favoring scoring in the search engine ranking algorithms.

The most popular blogging tool on the market today is WordPress which can be downloaded from their website at http://wordpress.org/download. Installation is simple and does not require extensive knowledge of programming languages.

Blogging is being used by many sites as a way to passively draw targeted traffic and search engine rankings. Installing one can help you draw web traffic and get noticed quickly by the engines.

lookforlinks[dot]com

Hati-hati Terhadap W32/VBWorm.MQE

2007-02-12T11:15:00.000+07:00

Jika suatu saat Drive di komputer anda tiba-tiba hilang atau muncul beberapa dialog box dengan pesan “khas” met PacaraN yach ... :), sebaiknya anda waspada karena kemungkinan besar anda sudah menjadi korban salah satu virus lokal yang saat ini sedang menyebar dan “celakanya” jika user klik tombol “OK” maka dialog box lain akan muncul dengan isi “hitungan mundur 60 detik” setelah itu virus ini akan mematikan komputer dan jangan senang dulu karena pesan ini akan muncul jika user menjalankan komputer dibawah jam 8.00 pagi. Mungkin virus ini bermaksud mendisiplinkan karyawan agar tidak bekerja sebelum jam 8 pagi.

simak reviewnya disini.

Pusing juga Bersihin Rumah

2007-02-12T11:13:00.000+07:00

don't try this at home..!!!

ga percaya, baca ajah beritanya disini.

Sebelum Meninggal, Anna Nicole Jatuh di Kamar Mandi

2007-02-12T11:11:00.000+07:00

anda tahu anna nicole smith ..??
ya... beliau adalah salah satu model di play*oy.

simak berita selengkapnya disini

Slank Galang Dana Untuk Korban Banjir

2007-02-12T11:09:00.000+07:00

salut juga deh buat group band Slank.
maju terus buat slank.

berita lengkapnya ada di :Slank Galang Dana Untuk Korban Banjir

Banjir Pasti Berlalu

2007-02-12T11:05:00.000+07:00

"Ah, siga nu enya bae Ahmad mah. Memangna tiap turun hujan caina dileteran?"

lucu juga seh. simak beritanya di =>Banjir Pasti Berlalu

Sebuah Makna Dari Persahabatan

2007-02-12T11:03:00.000+07:00

"SEORANG sahabat adalah orang yang menanyakan kabar kita dan kemudian menunggu untuk mendengarkan jawabannya' (Ed Cunningham)."

baca kelanjutannya di ==>Makna Sebuah Persahabatan:

Meningkatkan Ranking Website melalui Meta Tag

2007-01-29T18:40:00.000+07:00

baca reviewnya disini :Meningkatkan Ranking Website melalui Meta Tag

Google + Samsung = Google Switch Phone

2007-01-25T09:05:00.000+07:00

pengen punya hape yang support sama akun gmail ..??

pake hape samsung. berbasis software dari google.
simak beritanya disini : Google + Samsung = Google Switch Phone

Now available: Adobe Reader 8

2007-01-25T09:04:00.000+07:00

sebagai pemakai adobe acrobat reader versi 7, saya sangat senang sekali mendengar muncul nya versi 8. kayak apa yah versi 8 dibandingkan dengan versi 7 ..??

simak beritanya di sini : Now available: Adobe Reader 8

Situs Baru dari Yahoo!

2007-01-25T09:02:00.000+07:00

Yahoo! ngebuat situs baru mengenai keuangan. baca selengkapnya : Situs Baru dari Yahoo!

2006-10-19T11:38:00.000+07:00

ijinkanlah saya, seorang manusia biasa
untuk meminta maaf kepada semua orang, termasuk anda.

Minal Aidin Wal Fa Idzin
Mohon Maaf Lahir & Bathin

Selamat Idul Fitri 1427 H

selama ini saya banyak melakukan kesalahan,
sekali lagi, kita bermaaf-maafan yah.

*impas deh... :D

Sugar

2006-08-18T18:02:00.000+07:00

In general use, non-scientists take "sugar" to mean sucrose, also called "table sugar" or saccharose, a white crystalline solid disaccharide. Humans most commonly use sucrose as their sugar of choice for altering the flavor and properties (such as mouthfeel, preservation, and texture) of beverages and food. Commercially-produced table sugar comes either from sugar cane or from sugar beet.
The "simple" sugars, or monosaccharides (such as glucose), store energy which biological cells use and consume. In a list of ingredients, any word that ends with "ose" probably denotes a sugar.
For information on the other sugars, see monosaccharide and disaccharide.
In culinary terms, sugar as a type of food delivers one of the primary taste sensations, that of sweetness.

Etymology

The English word "sugar" ultimately originates from the Sanskrit word sharkara or śarkarā (शर्करा) which means "sugar" or "pebble". It probably came to English by way of the French, Spanish and/or Italians who derived their word for sugar from the Arabic al sukkar (whence the Spanish word azúcar, the Old Italian word zucchero, the Old French word zuchre). The Arabs in turn derived their word from the Persian shakar, derived from the original Sanskrit.

Production

The first production of sugar from sugar-cane took place in India. Alexander the Great's companions reported seeing "honey produced without the intervention of bees" and it remained exotic in Europe until the Arabs started cultivating it in Sicily and Spain. Only after the Crusades did it begin to rival honey as the sweetener in Europe. The Spanish began cultivating sugar cane in the West Indies in 1506, and in Cuba in 1523. It was first cultivated in Brazil 1532 by the Portuguese.
Table sugar or sucrose comes from plant sources. The most important two sugar crops are sugarcane (Saccharum spp.) and sugar beets (Beta vulgaris), in which sugar can account for 12%–20% of the plant's dry weight. Some minor commercial sugar crops include the date palm (Phoenix dactylifera), sorghum (Sorghum vulgare), and the sugar maple (Acer saccharum). In the financial year 2001/2002, 134.1 million tonnes of sugar were produced worldwide.
Most cane sugar comes from countries with warm climates, such as Brazil, India, China and Australia (in descending order). In 2001/2002 there was over twice as much sugar produced in developing countries as in developed countries. The greatest quantity of sugar is produced in Latin America, the United States and the Caribbean nations, and in the Far East.
Beet sugar comes from regions with cooler climates: northwest and eastern Europe, northern Japan, plus some areas in the United States including California. The beet growing season ends with the start of harvesting around September. Harvesting and processing continues until March in some cases. The duration of harvesting and processing is influenced by the availability of processing plant capacity, and weather - harvested beet can be laid up until processed but frost damaged beet becomes effectively unprocessable.
The European Union (EU) has become the world's second-largest sugar exporter. The Common Agricultural Policy of the EU sets maximum quotas for members' production to match supply and demand, and a price. Excess production quota is exported (approx 5 million tonnes in 2003). Part of this is "quota" sugar which is subsidised from industry levies, the remainder (approx half) is "C quota" sugar which is sold at market price without subsidy. These subsidies and a high import tariff make it difficult for other countries to export to the EU states, or compete with it on world markets. The U.S. sets high sugar prices to support its producers with the effect that many sugar consumers have switched to corn syrup (beverage manufacturers) or moved out of the country (candy makers).
The cheap prices of glucose syrups produced from wheat and corn (maize) threaten the traditional sugar market. In combination with artificial sweeteners, drink manufacturers can produce very low-cost products.

Foreign Exchange Market

2006-07-27T15:06:00.000+07:00

The foreign exchange (currency or forex or FX) market exists wherever one currency is traded for another. It is by far the largest market in the world, in terms of cash value traded, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. Retail traders (small speculators) are a small part of this market. They may only participate indirectly through brokers or banks and may be targets of forex scams.

Market size and liquidity

The foreign exchange market is unique because of:

its trading volume,
the extreme liquidity of the market,
the large number of, and variety of, traders in the market,
its geographical dispersion,
its long trading hours - 24 hours a day (except on weekends).
the variety of factors that affect exchange rates,

Average daily international foreign exchange trading volume was $1.9 trillion in April 2004 according to the BIS study Triennial Central Bank Survey 2004

$600 billion spot
$1,300 billion in derivatives, ie
- $200 billion in outright forwards
- $1,000 billion in forex swaps
- $100 billion in FX options.

Exchange-traded forex futures contracts were introduced in 1972 at the Chicago Mercantile Exchange and are actively traded relative to most other futures contracts. Forex futures volume has grown rapidly in recent years, but only accounts for about 7% of the total foreign exchange market volume, according to The Wall Street Journal Europe (5/5/06, p. 20).

The ten most active traders account for almost 73% of trading volume, according to The Wall Street Journal Europe, (2/9/06 p. 20). These large international banks continually provide the market with both bid (buy) and ask (sell) prices. The bid/ask spread is the difference between the price at which a bank or market maker will sell ("ask", or "offer") and the price at which a market-maker will buy ("bid") from a wholesale customer. This spread is minimal for actively traded pairs of currencies, usually only 1-3 pips. For example, the bid/ask quote of EUR/USD might be 1.2200/1.2203. Minimum trading size for most deals is usually $1,000,000.

These spreads might not apply to retail customers at banks, which will routinely mark up the difference to say 1.2100 / 1.2300 for transfers, or say 1.2000 / 1.2400 for banknotes or travelers' cheques. Spot prices at market makers vary, but on EUR/USD are usually no more than 5 pips wide (i.e. 0.0005). Competition has greatly increased with pip spreads shrinking on the majors to as little as 1 to 1.5 pips.

Trading characteristics

There is no single unified foreign exchange market. Due to the over-the-counter (OTC) nature of currency markets, there are rather a number of interconnected marketplaces, where different currency instruments are traded. This implies that there is no such thing as a single dollar rate - but rather a number of different rates (prices), depending on what bank or market maker is trading. In practice the rates are often very close, otherwise they could be exploited by arbitrageurs.

The main trading centers are in London, New York, and Tokyo, but banks throughout the world participate. As the Asian trading session ends, the European session begins, then the US session, and then the Asian begin in their turns. Traders can react to news when it breaks, rather than waiting for the market to open.

There is little or no 'inside information' in the foreign exchange markets. Exchange rate fluctuations are usually caused by actual monetary flows as well as by expectations of changes in monetary flows caused by changes in GDP growth, inflation, interest rates, budget and trade deficits or surpluses, and other macroeconomic conditions. Major news is released publicly, often on scheduled dates, so many people have access to the same news at the same time. However, the large banks have an important advantage; they can see their customers' order flow. Trading legend Richard Dennis has accused central bankers of leaking information to hedge funds.

Currencies are traded against one another. Each pair of currencies thus constitutes an individual product and is traditionally noted XXX/YYY, where YYY is the ISO 4217 international three-letter code of the currency into which the price of one unit of XXX currency is expressed. For instance, EUR/USD is the price of the euro expressed in US dollars, as in 1 euro = 1.2045 dollar.

On the spot market, according to the BIS study, the most heavily traded products were:

EUR/USD - 28 %
USD/JPY - 17 %
GBP/USD (also called cable) - 14 %

and the US currency was involved in 89% of transactions, followed by the euro (37%), the yen (20%) and sterling (17%). (Note that volume percentages should add up to 200% - 100% for all the sellers, and 100% for all the buyers). Although trading in the euro has grown considerably since the currency's creation in January 1999, the foreign exchange market is thus still largely dollar-centered. For instance, trading the euro versus a non-European currency ZZZ will usually involve two trades: EUR/USD and USD/ZZZ. The only exception to this is EUR/JPY, which is an established traded currency pair in the interbank spot market.

Market participants

According to the BIS study Triennial Central Bank Survey 2004

53% of transactions were strictly interdealer (ie interbank);
33% involved a dealer (ie a bank) and a fund manager or some other non-bank financial institution;
and only 14% were between a dealer and a non-financial company.

Banks

The interbank market caters for both the majority of commercial turnover and large amounts of speculative trading every day. A large bank may trade billions of dollars daily. Some of this trading is undertaken on behalf of customers, but much is conducted by proprietary desks, trading for the bank's own account.

Until recently, foreign exchange brokers did large amounts of business, facilitating interbank trading and matching anonymous counterparts for small fees. Today, however, much of this business has moved on to more efficient electronic systems, such as EBS, Reuters Dealing 3000 Matching (D2), the Chicago Mercantile Exchange, Bloomberg and TradeBook(R). The broker squawk box lets traders listen in on ongoing interbank trading and is heard in most trading rooms, but turnover is noticeably smaller than just a few years ago.

Commercial Companies

An important part of this market comes from the financial activities of companies seeking foreign exchange to pay for goods or services. Commercial companies often trade fairly small amounts compared to those of banks or speculators, and their trades often have little short term impact on market rates. Nevertheless, trade flows are an important factor in the long-term direction of a currency's exchange rate. Some multinational companies can have an unpredictable impact when very large positions are covered due to exposures that are not widely known by other market participants.

Central Banks

National central banks play an important role in the foreign exchange markets. They try to control the money supply, inflation, and/or interest rates and often have official or unofficial target rates for their currencies. They can use their often substantial foreign exchange reserves, to stabilize the market. Milton Friedman argued that the best stabilization strategy would be for central banks to buy when the exchange rate is too low, and to sell when the rate is too high - that is, to trade for a profit. Nevertheless, central banks do not go bankrupt if they make large losses, like other traders would, and there is no convincing evidence that they do make a profit trading.

The mere expectation or rumor of central bank intervention might be enough to stabilize a currency, but aggressive intervention might be used several times each year in countries with a dirty float currency regime. Central banks do not always achieve their objectives, however. The combined resources of the market can easily overwhelm any central bank. Several scenarios of this nature were seen in the 1992-93 ERM collapse, and in more recent times in South East Asia.

Investment Management Firms

Investment Management firms (who typically manage large accounts on behalf of customers such as pension funds, endowments etc.) use the Foreign exchange market to facilitate transactions in foreign securities. For example, an investment manager with an international equity portfolio will need to buy and sell foreign currencies in the spot market in order to pay for purchases of foreign equities. Since the forex transactions are secondary to the actual investment decision, they are not seen as speculative or aimed at profit-maximisation.

Some investment management firms also have more speculative specialist currency overlay units, which manage clients' currency exposures with the aim of generating profits as well as limiting risk. Whilst the number of this type of specialist firms is quite small, many have a large value of assets under management (AUM), and hence can generate large trades.

Hedge Funds

Hedge funds, such as George Soros's Quantum fund have gained a reputation for aggressive currency speculation since 1990. They control billions of dollars of equity and may borrow billions more, and thus may overwhelm intervention by central banks to support almost any currency, if the economic fundamentals are in the hedge funds' favor.

Retail Forex Brokers

Retail forex brokers or market makers handle a minute fraction of the total volume of the foreign exchange market. According to CNN, one retail broker estimates retail volume at $25-50 billion daily, which is about 2% of the whole market. CNN also quotes an official of the National Futures Association "Retail forex trading has increased dramatically over the past few years. Unfortunately, the amount of forex fraud has also increased dramatically."

All firms offering foreign exchange trading online are either market makers or facilitate the placing of trades with market makers.

In the retail forex industry market makers often have two separate trading desks- one that actually trades foreign exchange (which determines the firm's own net position in the market, serving as both a proprietary trading desk and a means of offsetting client trades on the interbank market) and one used for off-exchange trading with retail customers (called the "dealing desk" or "trading desk").

Many retail FX market makers claim to "offset" clients' trades on the interbank market (that is, with other larger market makers), e.g. after buying from the client, they sell to a bank. Nevertheless, the large majority of retail currency speculators are novices and who lose money, so that the market makers would be giving up large profits by offsetting. Offsetting does occur, but only when the market maker judges its clients' net position as being very risky.

The dealing desk operates much like the currency exchange counter at a bank. Interbank exchange rates, which are displayed at the dealing desk, are adjusted to incorporate spreads (so that the market maker will make a profit) before they are displayed to retail customers. Prices shown by the market maker do not necessarily reflect interbank market rates. Arbitrage opportunities may exist, but retail market makers are efficient at removing arbitrageurs from their systems or limiting their trades.

A limited number of retail forex brokers offer consumers direct access to the interbank forex market. But most do not because of the limited number of clearing banks willing to process small orders. More importantly, the dealing desk model can be far more profitable, as a large portion of retail traders' losses are directly turned into market maker profits. While the income of a marketmaker that offsets trades or a broker that facilitates transactions is limited to transaction fees (commissions), dealing desk brokers can generate income in a variety of ways because they not only control the trading process, they also control pricing which they can skew at any time to maximize profits.

The rules of the game in trading FX are highly disadvantageous for retail speculators. Most retail speculators in FX lack trading experience and and capital (account minimums at some firms are as low as 250-500 USD). Large minimum position sizes, which on most retail platforms ranges from $10,000 to $100,000, force small traders to take imprudently large positions using extremely high leverage. Professional forex traders rarely use more than 10:1 leverage, yet many retail Forex firms default client accounts to 100:1 or even 200:1, without disclosing that this is highly unusual for currency traders. This drastically increases the risk of a margin call (which, if the speculator's trade is not offset, is pure profit for the market maker).

According to the Wall Street Journal (Currency Markets Draw Speculation, Fraud July 26, 2005) "Even people running the trading shops warn clients against trying to time the market. 'If 15% of day traders are profitable,' says Drew Niv, chief executive of FXCM, 'I'd be surprised.' "

In the US, "it is unlawful to offer foreign currency futures and option contracts to retail customers unless the offeror is a regulated financial entity" according to the Commodity Futures Trading Commission. Legitimate retail brokers serving traders in the U.S. are most often registered with the CFTC as "futures commission merchants" (FCMs) and are members of the National Futures Association (NFA). Potential clients can check the broker's FCM status at the NFA. Retail forex brokers are much less regulated than stock brokers and there is no protection similar to that from the Securities Investor Protection Corporation. The CFTC has noted an increase in forex scams.

Speculation

Controversy about currency speculators and their effect on currency devaluations and national economies recurs regularly. Nevertheless, many economists (e.g. Milton Friedman) argue that speculators perform the important function of providing a market for hedgers and transferring risk from those people who don't wish to bear it, to those who do. Other economists (e.g. Joseph Stiglitz) however, may consider this argument to be based more on politics and a free market philosophy than on economics.

Large hedge funds and other well capitalized "position traders" are the main professional speculators.

Currency speculation is considered a highly suspect activity in many countries. While investment in traditional financial instruments like bonds or stocks often is considered to contribute positively to economic growth by providing capital, currency speculation does not, according to this view. It is simply gambling, that often interferes with economic policy. For example, in 1992, currency speculation forced the Central Bank of Sweden to raise interest rates for a few days to 150% per annum, and later to devalue the krona. Former Malaysian Prime Minister Mahathir Mohamad is one well known proponent of this view. He blamed the devaluation of the Malaysian ringgit in 1997 on George Soros and other speculators.

Gregory Millman reports on an opposing view, comparing speculators to "vigilantes" who simply help "enforce" international agreements and anticipate the effects of basic economic "laws" in order to profit.

In this view, countries may develop unsustainable financial bubbles or otherwise mishandle their national economies, and forex speculators only made the inevitable collapse happen sooner. A relatively quick collapse might even be preferable to continued economic mishandling. Mahathir Mohamad and other critics of speculation are viewed as trying to deflect the blame from themselves for having caused the unsustainable economic conditions.

E-gold

2006-06-15T11:47:00.000+07:00

digital gold currency operated by Gold & Silver Reserve Inc. under e-gold Ltd., and is a system which allows the instant transfer of gold ownership between users. There are over three million e-gold accounts of which about one quarter active [1].

As of May 2006, e-gold had 3,784,689 grams of gold in storage, which is worth approximately US$86 million. There are typically 66,000 e-gold spends each day, with a total value each day of about US$10.5 million (that is, about 460 kilograms of gold). In comparison, PayPal handles transfers of approximately US$60 million per day ^{[citation needed]}.

History

e-gold was founded in 1996 by Dr. Douglas Jackson and Barry K. Downey [2]. Transactions using e-gold have grown dramatically since 2005. The total amount of gold bars (over three tonnes) in the e-gold system is approaching the size of the national reserves of smaller countries. e-gold now generates a substantial income from spend and storage fees — it costs a few cents to make each e-gold "spend" and e-gold itself now earns well over a million USD per year from fees.

The number of e-gold accounts (as claimed by e-gold) grew from 1 million in November 2003 to 3 million on 22 April 2006. That represents a compound growth rate of approximately 55% per annum. This high growth rate has been sustained by e-gold almost since inception. [3]