Finance ministry wants part in coal work contract renegotiation

The finance ministry wishes to take part in renegotiation on 76 coal mining work contracts in order to ensure optimum state revenue from this sector, Finance Minister Agus Martowardoyo said.

"We have to take anticipatory steps. The government has never been involved in the conclusion of mining work contracts although they do affect state income such as taxe and so forth. In this case we should not stay silent, we have to be active," Agus said here Thursday.

The minister said the president`s request on renegotiation of mining work contracts should be heeded.

At present, more than 40 mineral industry work contracts and 8,000 mining concessions needed to be reviewed.

He said the finance ministry was never involved in talks on extension of the concessions and the conclusion of coal exploitation work contracts and other types of work contracts.

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Garuda to buy 50 A320 Airbus planes

Publicly listed PT Garuda Indonesia Tbk announced on Wednesday it had signed a Memorandum of Understanding (MoU) with Airbus Industrie for the purchase of 50 A320 Family planes.

Garuda Indonesia President Director Emirsyah Satar signed the MoU with Airbus Chief Operating Officer John Leahy at the Paris Airshow 2011 on Tuesday, Garuda Indonesia spokesman Pujobroto said in a press statement on Wednesday.

Under the MoU, Garuda would buy 50 A320 planes consisting of 25 planes to be bought under a confirmed order and 25 planes under an option, he said.

The 25 planes will consist of 15 standard A320s and 10 A320neos. They will join Garuda Citilink fleet in stages from 2014 to 2018, or 5 planes in each of the years.

He said the purchase of the Airbus planes was designed to develop the potential market of Garuda Citilink which grew rapidly every year amidst rising demand for low-cost airline services at domestic and regional levels.

Garuda Indonesia President Director Emirsyah Satar said the purchase of A320s was part of the airline company`s program to develop Garuda Citilink by increasing its capacity and competitiveness.

He said A320s were very suitable for low cost flights because of their reliability and convenience.

Pujobroto said Garuda Citilink would gradually rejuvenate its planes starting this year. By the end of 2011, Garuda Citilink was expected to operate four A320s with a capacity of carrying 180 passengers each.

Currently, Garuda Citilink is operating six B-737-300s and 400s to link eight cities in Indonesia, namely Jakarta, Surabaya, Denpasar, Batam, Balikpapan, Banjarmasin, Makassar and Medan.

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PLN to buy electricity from Malaysia for Entikong region

Stated-owned Electricity Company (PT PLN) will push through its plan to buy one MW of electricity from Sesco, Malaysia, to meet energy needs in the Entikong border region, Sanggau district, West Kalimantan province.

"The purchase plan is ready and our target now is to make the connection later this month," Bambang Budiarto, general manager of PT PLN`s operations in West Kalimantan, said here Saturday.

He explained, all the preparations were ready, including the transformer, so it just wait for the connection between electricity network owned by Sesco, Malayasia with PLN`s transformer in Entikong.

"Currently, the electricity purchase model at Sesco has been applied in Sajingan, Sambas district and Badau, Kapuas Hulu district in order to meet the electrical energy shortage in the border areas," Bambang noted.

The electricity purchases made ​​since the distance between the power grid owned by Sesco, Malaysia is closer than that PLN has to build the existing network to power in the border areas, he added.

In addition, the construction of the power grid at the border requires a high cost because of its location is away.

Currently, PLN region West Kalimantan are still using diesel power plant so that the operational costs of Rp2,000 to Rp3,000 per kWh. While the highest selling price to the customer at Rp620 per kWh, so the rest is subsidized by the government.

"As if buying in Sesco, Malaysia it is only Rp900 per kWh. In addition, we do not need to pay maintenance and others. But the purchasing power is short-term," Bambang said.

The electricity purchased by PLN region West Kalimantan each of 400 kilowatts for Nanga Badau areas in Kapuas Hulu district and 200 kilowatts for Aruk in Sambas district.

Bambang stated, the purchase of such electricity is only temporary pending the construction of two steam power plant capacity of 255 MW in Parit Baru, Pontianak and Tanjung Gundul, Bengkayang district.

PLN region West Kalimantan will illuminate about 12 villages in the border region of Indonesia (Kalimantan Barat) - Malaysia in 2011.

The border villages included in the electricity into the village program among others are Temajok and Aruk in Sambas district, Jagoi Babang, Siding and Jagoibelida in Bengkayang district, Badau and Puring Kencana in Kapuas Hulu district, Jasa in Sintang district as well as Suruh Tembawang, Palak Pasang, Sekayam and Entikong in Sanggau district.

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Investment opportunities in Indonesia need to be utilized

The government, business players, and investors should optimally utilize the wide investment opportunities in Indonesia, director of Quvat Management in Singapore Thomas T. Lembong said here on Sunday.

On the sidelines of World Economic Forum on East Asia (WEF-EA), Lembong said China and India have at present a great interest in investment in Asia, including Indonesia, and this trend should be used as best as possible.

"Asia is on the rise. Indonesia at present is a `darling` investor. The investors are aware that Indonesia has a very big potential," Lembong said.

He said as coal, palm oil and consumer goods are now lucrative commodities in Indonesia they need to be offered to investors.

But Lembong cautioned Indonesia not always has the attention of investors.

"Therefore we have to be realistic because the market and investors always have the trend. How much investment can be sustained, will depend on how we utilize it optimally," said the recipient of World Economic Forum Young Global Leader.

He said that in terms of investment supporting facilities and infrastructure, Indonesia was not inferior to those of other developing countries as China and India, but compared with the developed countries, Indonesia was still lagging far behind.

"As learned from international investors, China and India are not the countries without problems because in the developing countries there facing many obstacles and difficulties, but Indonesia actually has many good facilities," he said.

For that, Lembong said all parties including the government, business players, and investors need to be more patient because the important thing was not quantity but quality of investment.

"Ideally, all parties should be patient, and not be in a hurry so that the funds do not go to unnecessary projects," he said, adding that the key to investment success in Indonesia was cooperation of all parties namely of the government, business players, and investors.

According to Lembong, Indonesia has very big investment opportunities as a developing country.

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Indonesia to support ASEAN Bond market development

Indonesia will support the development of joint ASEAN bond market in a bid to optimize the financing potential in the region.

"ASEAN will form a guarantor institution of joint bond market and Indonesia will support it," Finance Minister Agus Martowardojo said at the World Economic Forum on East Asia (WEF-EA) here on Sunday.

Agus said ASEAN+3 (Japan, South Korea, and China) was at present finalizing the plan to optimize the ASEAN bond market.

According to him, the ASEAN+3 has earlier raised a total fund of US$120 billion in ASEAN Swap Currency framework.

Meanwhile, Michael Buchanan, Chief Asia-Pacific economist at Goldman Sach, suggested that the ASEAN bond market maintained local currency of each member country.

Buchanan said that based on his experience in various regions, bond market with joint currency was not effective enough.

"The bond market will run effective if it is with local currency," Buchanan said.

According to Group Chief Executive and executive Director of HSBC Holdings plc, Stuart T Gulliver, the management of joint commercial papers would create greater opportunity.

"I don`t agree with capital control, but I agree with the management of commercial papers because we have to create greater opportunity," Gulliver said.

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State firms to form investment forum, minister

A number of state-owned companies (BUMN) will form a BUMN Investment Forum (FIB) to bridge the investment of state firms and fund potentials they can gather amounting to Rp260 trillion, a minister said.

"Initiated by the workers insurance company PT Jamsostek, the forum would be inaugurated on June 14, 2011," BUMN Minister Mustafa Abubakar said.

The minister said BUMNs grouped in the forum were state-owned firms which had liquidity surplus and were ready to make investment.

He said that besides, Jamsostek, a number of other BUMNs in the banking, security, insurance, financing and pension funds sectors were also grouped in the forum.

"These state companies will team up to facilitate firms which need funding," the minister said.

He said that the funds were aimed at funding projects on infrastructure like roads, airports, seaports, communications networks and railways projects.

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BI predicts February`s inflation below that of years before

Bank Indonesia predicts the rate of inflation in February will be lower than in the same month last years.

"Yes, it seems it will be below the annual average for February. So it year-on-year inflation will be below seven percent," the central bank`s governor, Darmin Nasution, said here on Friday.

The Central Bureau of Statistics (BPS) recorded the year-on-year inflation in January reached 7.02 percent and the year-on-year inflation of main components reached 4.18 percent.

For February the finance ministry predicts the rate will be at the range of 0.3 and 0.5 percent, as the price of rice has dropped ahead of the harvest season.

BPS chief Rusman Heriawan said earlier that the rate of inflation in 2011 could be controlled to be a low level if the rate of inflation in the next three months from February to April is low.

"If the rate of inflation in February, March and April is low we may still have hope," he said.

Rusman said the rate of inflation could be categorized as soft if it reached just between 0.1 and 0.3 percent.

Regarding the core inflation that could make the assumed target of 5.3 percent for 2011 unable to be achieved, Finance Minister Agus Martowardojo said the government would continue to discuss with Bank Indonesia to maintain it not to become too high.

"We must control the inflation and Bank Indonesia will work together with us for it," he said.

He said the government would not interfere in controlling the core inflation which is under the authority of Bank Indonesia but it must be controlled.

"It must be put below 4.2 percent but the exact figures still have yet to be discussed further with BI. I would not say in advance because for achieving a 5.2 percent the area is very slim," he said.

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Thailand exploring fishery development cooperation with Aceh

The Thai government is exploring the possibility of cooperating with Aceh to develop the fishery potential of the province`s waters, the country`s top diplomat in Indonesia said.

Speaking to reporters after a meeting with Aceh Governor Irwandi Yusuf here Friday, Thai Ambassador to Indonesia Thanatip Upatising said Aceh was the most potential area for investment especially in the fisheries sector.

Governor Irwandi Yusuf said, the Aceh provincial administration would provide special facilities, including in licensing procedures, for every investor operating in Aceh.

Under Law Number 37/2000 on the free trade port of Sabang, the government had authorized the licensing of fishing operations in Aceh with a weight above 35 gross tons (GT).

"We have reviewed the ocean fisheries port area in Lampulo, Banda Aceh. The infrastructure to invest is quite good and supportive," the ambassador said.

Therefore, his side would invite the Thailand businessmen to cooperate with the local fishermen to work on the fisheries potential in the province, the ambassador Thanatip Upatising added.

"We are eager to invest in fishery sector in Aceh and partnered with the local fishermen or businessmen. We will tell the potential investment in the province to Thailand businessmen," he said.

The meeting also followed by a number of Aceh administration officials, including the Head of Aceh Marine and Fishery Office, Razali AR, the Head of Aceh Promotion and Investment office, Anwar Muhammad and the head of Aceh Forestry and Plantations office, T Fakhruddin Polem.

Meanwhile, the Head of Aceh Marine and Fishery Office, Razali, said, through the fisheries investments cooperation, it would be at least reducing illegal fishing activities in marine waters of the province.

The cooperation in fisheries sector with Thailand can be a momentum to transfer marine technology to the Aceh fishermen, he said.

"The cooperation is expected to not only fishing but also in term of processing that further it can be used as one of Aceh export commodity in," Razali added.

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Visit Bogor 2011

Various preparations have been made for Visit Bogor 2011 in a bid to increase the number of tourists visit this year.

Bogor district culture and tourism office spokesman Baehaki said here on Saturday that the district administration has designed a budget of Rp7.4 billions for the implementation of Visit Bogor 2011.

"But we are still discussing the amount of budget because it is predicted to be about tens of billions of rupiah for the program," Baehaki said.

He explained that the budget would be used for promotion and other activities related to the implementation of Visit Bogor 2011 which is to be launched later this month to increase to number of tourists visiting Bogor district this year.

Baehaki said the number of tourists visiting Bogor in the previous years rose only by 5 percent and therefore with the Visit Bogor 2011 the number was expected to increase by 15 until 20 percent.

"With such a program we hope the number of tourists visit to Bogor will increase by 15 to 20 percent this year," Baehaki said, adding that the Visit Bogor 2011 would be officially launched on February 26 in conjunction with Dongdang cultural festival.

Meanwhile, Dongdang cultural festival committee chairman Erwin Suryana said the participants this year were expected to rise from 1000 last year to 2,000 people.

"Bogor district head will officially launch Visit Bogor 2011 in conjunction with Dongdang cultural festival on February 26," Erwin Suryana said.

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January inflation reaches 0.89 percent : BPS

Indonesia`s inflation rate in January reached 0.89 percent , Central Bureau of Statistics (BPS) head Rusman Heriawan said here Tuesday.

Rusman said the January inflation rate was quite high and surpassed the figure for January 2010 which reached 0.82 percent.

"In general, the early year inflation is high and it is so because it enters the crucial month of food production, rice production in particular," he said here Monday.

Rusman explained the contributory factors to the January inflation were surging food prices which were up 2.21 percent; delis, drinks and cigarettes for 0.49 percent; and clothes for 0.15 percent.

Therefore, he added, year-on-year the inflation in January this year was 7.02 percent and year-on-year core inflation of the month was 4.18 percent.

"The year-on year inflation in January is higher than in December, while the core one is reaching 0.49 percent," Rusman said, here Tuesday.

Meanwhile, there were 62 cities in Indonesia contributing inflation while four cities gave deflation.

The highest inflation was in Padang, West Sumatera, with 3.70 percent and Sibolga, North Sumatera, with 2.66. Otherwise, the lowest was recorded in Manokwari, Papua, with 0.07 percent inflation.

"At the same time as in Sorong, the highest deflation is minus 1.07 percent, and minus 0.83 percent deflation is from Ambon," he said.

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Bank Kesawan Rights Issue Concluded

Jakarta - Bank Kesawan recently announced the conclusion of the bank`s Rights Issue, and received rights issue fund of Rp 734 billion (US$ 73 million dollars), a press release received here on Friday stated.

"The fund increased the capital adequacy ratio (CAR) and reached 61,19 percent from previously 11.43 percent (unaudited as per year 2010 end). Under the current CAR, we will have more room to grow," said Gatot Siswoyo, President Director Bank Kesawan.

Post rights issue condition marks the beginning of Qatar National Bank (QNB) ownership in the Indonesian banking industry through Bank Kesawan. QNB is now the majority shareholder of the bank representing 69,59 percent of the shares. Other shareholders above 5 percent shares ownership are Adhi Tirta Mustika with 9,01 percent and other institutions and the public with 21,4 percent.

Gatot added that QNB presence will bring added value to the bank. QNB global experiences will enhance the bank`s performance. Transfer of knowledge in terms of banking technology, risk management and human resources quality will refer to global best practices. In the future Bank Kesawan will be stronger and in line with its vision to be a leader in its class.

As published earlier the funds raised from the rights issue will strengthen the bank`s capital base and enable Bank Kesawan to be more active in participating in the growing Indonesian economy and provides better services to its customers.

"Arqaam Capital acted as the exclusive financial adviser on this transaction, and has offered excellent service in facilitating Bank Kesawan looking for investors," said Gatot.

Established in 1913 as a local bank in Medan as The Chinese Trading Company Limited. Bank Kesawan later moved its head office to Jakarta in 1990 as a national player. The bank now operates 36 branches across Indonesia with total assets of approximately Rp2,5 trillion (US$270 million). The bank offers various consumer products, with Kesawan Savings as innovated one because it is combined with a bank insurance.

Bank Kesawan ATM network linked to Indonesian most wide network, ATM BERSAMA, which enables Bank Kesawan customers to access the bank from more than 17,000 ATM across the country.

Meanwhile, Qatar National Bank is the largest bank in Qatar with a market share approaching 40 percent of banking sector assets. QNB offers a full range of Retail, Corporate, Investment, Treasury, Wealth Management, and Islamic Banking products and services for individuals, corporate institutions and government entities in Qatar as well as internationally.

QNB has the largest distribution network in Qatar, comprising 44 branches and offices (including 3 mobile branches), in addition to 12 Islamic branches and offices operated by QNB Al Islami, and more than 160 ATMs. Currently QNB is operating in 23 countries including branches in London, Paris, Yemen, Oman, Kuwait & Singapore as well as Representative Offices in Iran and Libya.

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Australian envoy addresses IABC members

Jakarta  - Australian Ambassador to Indonesia Greg Moriarty addressed the Indonesia Australia Business Council (IABC) members and guests during their Australia Day Business Luncheon and Investiture at the Intercontinental MidPlaza Hotel here on Wednesday.

According to a media release from the Australian Embassy in Jakarta on its official website, Moriarty in his speech said the agreement to negotiate toward an Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) in November 2010 by President Yudhoyono and Prime Minister Gillard presented the perfect opportunity and vehicle to do more on enhancing the bilateral investment, economic and trade relationship.

"We plan to work with Indonesia and to support Indonesia to ensure we reach the best possible outcome for both countries. It will be absolutely crucial to consult all sectors - and we particularly need to consult with the business community and those organizations that represent the business community," Moriarty said.

Currently 400 Australian businesses have operations in Indonesia in fields ranging from mining to agriculture to education. Australian businesses have also invested over A$4.7 billion in Indonesia in 2009.

At the luncheon, Ambassador Moriarty also presented the insignia of honorary Officer of the Order of Australia (AO) to Mr Moetaryanto Poerwoaminoto, Founder and Advisor of the IABC, for his service to the Australian business sector, particularly through the IABC.

Moetaryanto, also known as MP, is a senior Indonesian businessman and has been a member of the IABC since he assisted with its formation in 1989.

As a highly respected businessman, Moetaryanto has promoted trade and business between Australia and Indonesia over the past 40 years and has assisted many Australian business people in understanding the business environment in Indonesia.

From 1992 to 1996, Moetaryanto was President of the IABC and has since taken on the role of Advisor.

He is responsible for building the Council into an influential organization which promotes trade and investment between Australia and Indonesia.

The IABC is a substantial and well-regarded institution, considered by many as Moetaryanto`s legacy.

The IABC is one of the most dynamic and active business bodies in Indonesia, promoting bilateral business cooperation between Australia and Indonesia, and works closely with its Australian counterpart organization, the Australia Indonesia Business Council (AIBC).

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RI economy expected to grow 6.38 pct

Jakarta - Danareksa Research Institute has predicted the Indonesian economy will grow at a higher rate to 6,38 percent in 2011 with consumption, investment and exports expected to remain a growth engine.

The economic growth still will largely rely on interest rate, Danareksa Institute Chief Economist Yudhi Purbaya Sadewa said at a discussion on market outlook 2011 here on Wednesday.

Based on historical data, an interest rate of below 10 percent will be able to push up growth, he said.

Meanwhile, the interest rate will very much depend on the inflation rate in the country, he said.

He predicted the 2011 inflation rate will move to a level of 6.2 percent, slightly down from 6.96 percent the year before.

Yet the trend of inflation rate will still have the potential to go up, fueled by extreme weather and electricity tariff hikes, he said.

"Given the prospects for the inflation rate, what`s likely ahead is that pressure on the BI Rate will increase even though it still can be maintained at 6.5 percent," he said.

Under these circumstances, the low interest rate is expected to serve as monetary stimulus to the economic growth, he said.

The conducive banking system, coupled with the rupiah`s stable exchange rate against the dollar is expected to boost the economic growth this year, he said.

Overall, the Indonesian economy is entering the new phase of expansion expected to go on until 2016, he said.

Despite the good prospects for the Indonesian economy this year, he warned of global factors that may have an adverse impact on the national economy. He said The Fed rate is expected to remain low.

Although several main indicators of the European economy are improving its growth has begun to slow down. "This suggests that the European economy will slow down in upcoming years," he said.

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ADB Provides US$3 Million for Merapi Victims

Jakarta, The Asian Development Bank (ADB) has provided US$3 million for victims of the recent Mt Merapi eruptions in Central Java which caused damage to human settlements and forced hundreds of thousands to evacuate.

ADB President Haruhiko Kuroda in a press release made available to ANTARA here on Saturday said the bank would do whatever it can to support the government in providing temporary shelters for the victims and meet their other important needs.

The ADB assistance would among other things be used to normalize the functions of public facilities such as schools, health care centers, water and sanitation infrastructure.

The assistance would also be used to design a cash-aid-for-work scheme for evacuees.

More than 300 people were killed and over 400 thousand others were forced to evacuate as a result of the volcano eruptions last month.

Most of the evacuees had by early December returned to their respective homes after Mt Merapi`s danger status was officially lowered.

The Geological Disaster Mitigation and Volcanology Center lowered the danger status of MT Merapi on December 3, 2010 from the highest (red) to the alert level.

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BI to Launch New Banking Architecture

Purwakarta, West Java, Bank Indonesia plans to issue a new Indonesian Banking Architecture (API) this month which is the continuation of the earlier API, in line with new challenges and economic developments.

"I hoped the revised edition of the API could be immediately made known to the public before the end of this year," BI deputy governor Muliaman D Hadad said at a journalist training event here on Saturday.

He said the new API would have a time frame until 2020 following the start of the ASEAN Economic Community period so that the national banking community by the time will have been ready to compete with other banks in the Southeast Asian region.

"In 2020 the Indonesian economy is growing bigger so that it must be supported by strong banking and therefore as of now preparations towards 2020 have to be made," he said.

The new API is the results of evaluation of the old API with additions such as on new initiatives aimed to push banks to grow with stronger capital.

In the new API the roles of state-owned banks and regional banks would be strengthened with regard to their strategy and capital so that they could become a market leader in their respective region.

"The role of smallholder banks (BPR) would also be made clear so that they are not inferior compared to general banks," he said.

He said the new API would also direct banks to ease public access to them so that more people would be involved in banking services and so that they would be useful in reducing poverty.

"The banking access improvement and financial worthiness are the two main topics related to boosting of banking credits," he said.

Muliaman said the target of 2020 was also in line with the Basel III decision that states that all provisions in the Basel III could be implemented fully in 2019 such as with regard to requirements for an eight to 10 percent capital adequacy ratio.

BNI`s international and treasury director Adi Setianto on the occasion said that he also viewed that the revised API would have a consequence on national banks with regard to supervision, capitalization and competence.

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Tax Ratio to GDP Reaches 15.7 Percent

Jakarta, The ratio of tax receipts to the domestic gross products (GDP) has reached 15,7 percent, Taxation Director General Mochmad Tjiptardjo said.

"So far the calculation of the tax ratio to the GDP did not include receipts from regional and natural resource taxes. If all are calculated, the ratio of total tax receipts to the gross domestic products would reach 15.7 percent," the director general said when he popularized taxation in Ciawi, West Jave, over the weekend.

Mochamad Tjiptardjo said that various quarters had so far considered that Indonesia had been behind neighboring countries in terms of tax receipts.

"A comparison must be made apple-to-apple. They (neighboring countries) include regional taxes while Indonesia so far has only calculated national tax receipts," the director general said.

He said that the national tax ratio in the last several years had been going up and down. The tax ratio in 2009 reached 11.9 percent, while in 2010 it was 12.1 percent and in the previous years it was recorded at 13 percent.

The director general said that the tax ratio in 2011 and in the following years would move dynamically. After all, it will include taxes on land and buildings (PBB) as well as on obtaining titles of land and building (BPHTB).

"The ratio of tax receipts to GDP will continue to drop if tax receipts only include national taxes, but if regional and natural resources taxes are also calculated, the ratio will reach 15.7 percent," he said.

He said with that figure, Indonesia`s tax ratio to the GDP was not far different from those of other neighboring countries in Southeast Asia.

Regarding tax incentives to boost businesses, Tjiptardjo said the government was providing a number of facilities such as tax allowance and acceleration of write-off.

"The government is also studying the possibility of providing tax-holidays," he said.

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RI, China share experience in developing state enterprises

Jakarata, Indonesian and Chinese state enterprises are expected to be able to share their experience in making both countries state enterprise profitable, Mustafa Abubakar, minister of Indonesian State-Owned Enterprises, said.

"State-Owned Enterprises in Indonesia play an important role in the country`s development. And I hope the directors of our state-owned enterprises could learn from the transformation of Chinese enterprises," the minister said in his remark in a morning dialogue about Chinese Experience in Making State Enterprise Profitable, here Thursday.

According to Mustafa, the Indonesian State Enterprises had made progress in realizing the world class corporation by having work culture transformation, restructuring, privatization and synergy development.

He also said that Indonesian State Enterprises could be world class enterprises like China, whose banking and energy enterprises had become global players.

"Iam optimistic that our state enterprises have big opportunity for improvement. And I think the keys are good management and leadership," the minister said.

Moreover, Mustafa said that the Indonesian state enterprises had become economic backbones and driving forces for growth like Chinese enterprises.

"The success of many State Enterprises in Indonesia has showed that our state enterprises are playing an important role for developing our country, and it has broken the rule that state enterprises is identical with mismanagement and inefficiency," he said.

However, the Ministry of State Enterprises also needed to be improved to make better ministry in building up the Indonesia.

"The Ministry of State Enterprises also needs to be increased by having restructuring enterprises, so that the Ministry can be more competitive, efficient and synergistic," he said.

Meanwhile, Prof. Xiao Geng, the Director of Columbia Global Center-East Asia, said the China government had reformed its state enterprises gradually since 1978 by keeping the big enterprises and release the small and loss ones.

"From 1993 until now, the reformation of state enterprises in China has come to the third phase, where the main element of this step is to maintain the big enterprises, while the small ones are released," said the professor here Thursday.

Furthermore, Xiao Geng said transferring composition of government ownership into private one, by inviting asset from private company to join, was also the effort done by the Chinese government to increase the role of state enterprise there.

In relation to the initial public offering (IPO) of Krakatau Steel assets by inviting foreign common stocks, Mustafa said people should not think negatively to the foreign shares because the aim of the offering was to bring better changes on the economic.

"The lack of knowledge about IPO makes citizens to have distortions in understanding the meaning of IPO itself. So that, it is the media?`s duty to give clear information about the interference of foreign shares that not always bring loss to our economy," the Minister said.

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Garuda Indonesia sets its 2010 load factor at 85 pct

Denpasar, Bali, The Denpasar office of Garuda Indonesia has sets itself a 85 pct load factor target by the end of 2010.

"We are optimistic that the load factor up to the end of this year would reach 85 pct," General Manager (GM) of Garuda Indonesia`s Denpasar office Jubi Prasetyo said at Pan Fasific Nirwana Resort, Tabanan regency, Bali, on Thursday.

He said at the Garuda Frequent Flyer (GFF) Platinum Golf Gathering that the Balinese people has a high confidence in flying by Garuda Indonesia.

This is proven by an increase in GFF in Bali which has reached 15,000 people.
"Last year it was only 12,500 people, there has been an increase by 2,500 GFF holders," Jubi said.

By way of this GFF Platinum golf, he said, Garuda is getting increasingly intimate with its customers.

With regard to the recent confusion in the airline company`s flight schedules, it would not affect confidence in Garuda.

"We are lucky that the Denpasar office of Garuda did not suffer too serious disruptions. And we believe that with the existing system, Garuda Indonesia`s flight operations would even become better," Jubi said.

One of the GFF Platinum holders, Erwin Siregar, said that he always flied by Garuda wherever he went.

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Govt, BP Migas sign MoU on accelerated poverty eradication

Jakarta, The social affairs ministry and the oil and gas management agency (BP MIGAS) have signed a memorandum of understanding (MoU) on accelerated poverty eradication by way of joint effort group (KUBE) and handling of street chidren.

"We thanked BP MIGAS for its attention and care in facing the problems currently facing the nation," Social Affairs Minister Salim Segaf Al Jufri said in Jakarta Monday night.

A company with a coorporate sosial responsibility (CSR) by way of social activities is a big potential and is one form of implementing social solicarity values.

The MoU covers activities in social welfare including social empowerment, social rehabilitation, social security, and social protection.

The number of the poor in Indonesia this year according to the Central Bureau of Statistics (BPS) had reached 31.02 million. To handle the poverty problem the government, in this case the social affairs ministry, is still dealing with poor families.

In the last five years, the ministry has empowered 66,293 KUBE, or 662,926 families comprising 165,509 poor families through centralized DIPA, and 498,417 families by way of deconcentrated DIPA projects. 

Minister Salim Segaf Al Jufri said the figures was still far from the real figure of the existing poor population due to the government`s limited financial capacity.

"In view of this condition, it would be necessary to increase the participation of various national components along with the government in overcoming the social problems," the minister said.

In the meantime, head of BP Migas R Priyono said the cooperation with the social affairs ministry in overcoming poverty is crucial, because 50 percent of exploitation had been slowed down because of social problems.

He added that the program which will be drawn up will be directed to raise the economy of the people, especially of the community surrounding business enterprises.

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Indonesia Integrated in East Asia Trade

Jakarta, Indonesia as a developing country which has been integrated with the rapidly growing international trade in East Asia, with China as its main driving force, World Bank senior economist Sjamsu Rahardja said.

He said that Indonesia as a developing country is playing an important role in this regional trade, as it has many potentials and is located in a stragetically geographical region.

"At a time when Indonesia and China are flighting for a market, although some Chinese products are selling well on the world market, some Indonesian products like chemicals, paper, essential oils and even musical instruments, still manage to have a good position on the international market," he said in Jakarta Monday.

He said China will remain a world export power, but the inflation and production costs in China had been increasing, and will force it to increasingly relocate its manufacturing process to other countries, like Indonesia.

"We have to make use of this opportunity. For instance, the export of automotive components and food products which had been steadily growing, could be studied for later development," he said.

He also said that Indonesia`s exports of services are still focused on products like Bali`s tourism and Indonesian migrant workers, while in fact there are many other potentials such a designs, children`s work of art, which could be developed and promoted.

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