December 16, 2014 edition
Currency
Rupiah Drops to its Weakest Level
The rupiah closed at Rp12,436 per US dollar on Friday, exceeding even its lowest level reached during the 2008 Lehman crisis. Bank Indonesia (BI) has intermittently intervened throughout the week to slowdown rupiah's descent, but it did not seem to have much impact and towards the end of the week it appears that it let the rupiah weaken. BI has already used a sizable amount of its international reserves throughout the past few weeks, reflected by a drop in its reserves from US$112 billion last month to its current US$111 billion level. The central bank appeared to be more cautious this time and save the remaining amount for future needs.
Rupiah Drops to its Weakest Level
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January 1, 1970 edition
Fishery
Government to Regulate Fish Catch Quotas
Maritime Affairs and Fisheries Minister Susi Pudjiastuti is drafting a regulation to limit fish catches after a moratorium on trawlers weighing more than 30 tons ends in May next year. "This is to ensure marine ecosystem sustainability," she explained last week.
This restriction is a response to overfishing in Indonesia's waters. Maritime Affairs and Fisheries Ministry Secretary-General Syarif Hidayat said quotas would be set for 11 zones and for each fish species within them. The vessel size and type of fishing gear would also determine the quota.
Government to Regulate Fish Catch Quotas
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January 1, 1970 edition
A variety of liquor bottles were neatly arranged from floor to ceiling in the storeroom on the ground floor of Pacific Place mall in Jakarta. The store specializes in selling an assortment of imported alcohol, such as wine, whiskey and vodka. Last week it held a special sale. Customers who bought a bottle of Jack Daniel's for Rp1.47 million could also get a bottle of Jack Daniel's Honey worth Rp590,000.
The store sells a wide range of other liquor brands, such as Johnnie Walker and Smirnoff. Among the rows of bottles, it is not difficult to find one without the National Drug and Food Agency's (BPOM) Minuman Luar (ML) registration label. One bottle that lacked the label was a Canadian whiskey, Black Velvet.
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January 1, 1970 edition
The call notifying Syafii Maarif of the arrival of the special guests came two weeks ago. At the other end, Indonesian Transparency Society Secretary-General Nizar Suhendra informed him about the new energy minister's desire to talk. Two days later the guests arrived at the home of the former Muhammadiyah chairman on Jalan Halmahera in Yogyakarta.
Nizar and Energy and Mineral Resources Minister Sudirman Said stepped out of a Kijang Innova with University of Indonesia economist Faisal Basri. Also present were Amien Sunaryadi, former deputy chairman of the Corruption Eradication Commission (KPK), and Widhyawan Prawiraatmadja, upstream oil and gas regulator SKK Migas' deputy for commercial control. "The minister came without a security escort," Syafii said.
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November 18, 2014 edition
THE entrance to the offices looks old-fashioned. Made of wood painted yellow and light green, the door is similar to those found in traditional Javanese and Jakarta's Betawi homes. There, in Google Asia Pacific's headquarters on the 30th floor of Singapore's Asia Square building, on the last Wednesday in October, the search-engine giant held a briefing for small and medium-sized businesses throughout Southeast Asia called "Helping Small Business Think Big."
Six small and medium-sized businesses from six nations Thailand, Vietnam, Indonesia, Singapore, Malaysia and the Philippines presented stories of how the Internet allowed them to grow and market their businesses. "Small and medium businesses are playing an increasingly larger role, while also opening up new markets," declared Google Southeast Asia and ChinaDirector of Small & Medium Business Operations Ghislain Le Chatelier.
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November 11, 2014 edition
For nearly a month, Angkasa Transportindo Selaras' application for an airport business permit has been sitting on Bambang Tjahjono's desk. But the director of airports at the Transportation Ministry's Civil Aviation Directorate General has yet to affix his signature on the documents.
Apparently, Bambang is still waiting for definitive legal ruling. He explained that he received the application around the end of Septemberapproximately two months after Supreme Court ruling No. MA 688K/Pdt/2013 was read on July 16.
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November 4, 2014 edition
CURRENCY
Cabinet Line up Hurts the Rupiah
President Jokowi's cabinet lineup did not impress the market with the rupiah tumbling to a low of Rp12,169 per US$, a day after the announcement. The rupiah continued to wobble throughout the week, before ultimately closing at Rp12,085 on Friday, just 0.17 percent weaker than it was a week ago. A day earlier, the Government announced regulations designed to limit the risk exposure of volatile currency swings that could hurt companies with large foreign currency borrowings should the rupiah weaken further. Regulators want to avoid another 1997/8 financial crisisand are now insisting that companies have at least a BB global rating before they can borrow in foreign currency. Furthermore, these companies have to hedge at least 20 percent of their foreign currency loans and maintain a foreign currency asset to foreign currency liability (liquidity) ratio of 50 percent. Under this scheme at least 70 percent of the company's exposure to currency swings is hedged or protected. The Government appears to be anticipating and preparing for a potentially weaker rupiah should short-term foreign funds flow back to the US, with US interest rates on the rise and the US economy showing better results than other major economies. Everyone is hoping this will happen gradually, thus making it easier for the market and its players to adjust to.
Cabinet Line up Hurts the Rupiah