11 April 2008

Indonesia not to boycott Olympic games in Beijing

Jakarta: Indonesia is not to take part in any boycott of the Olympic Games in Beijing but asks the Chinese government to solve its problem properly so that it will not endanger the competitions, the head of the country's private sports organizations said.  

"Indonesia will not boycott the Olympic Games in Beijing but we ask the Chinese government to settle its problem properly so it will not jeopardize the games," Rita Subowo, chairwoman of the Indonesian National Sports Committee and Indonesian Olympic Committee (KON-KOI), said here on Friday.

She also referred to a declaration made by 205 member countries of the Association of National Olympic Committees fully supporting the holding of the Olympic Games in Beijing. "Political and sports matters should be kept apart. If there is a boycott, it could happen that no country will later be prepared to host the Olympiad," she said.

"We should also remember that the athletes who are to take part in the Olympic Games have been preparing themselves for a long time, not just for one or two years," Subowo said. "China also had to go through a long bidding process to host the games," she added.

Demonstrations against the holding of the games in Beijing have taken place in a number of cities in the world through which the Olympic flame was carried in relay after being lit in Olympia, Greece, last March 14.

Because of the possibility of demonstrations in Jakarta when the Olympic flame arrives in the Indonesian capital on April 22,national sports authorities have decided to shorten the flame's parading route in Jakarta. Initially, the flame was to be carried from the Monas (National Monument) area in central Jakarta to the Gelora Bung Karno (Bung Karno Sports rena) in south Jakarta.Source : PTI

11 April 2008

Indonesia to enhance cooperation with Mongolia

Beijing (ANTARA News) - The Indonesian government through its embassy in Beijing will expand bilateral cooperation with Mongolia in various potential fields, Indonesian Ambassador to China Sudrajat said here on Saturday.
"We will explore various fields of cooperation such as in the political, economic and tourism sectors because these sectors have the potentials to be expanded," the ambassador said.
He said that the services of the Indonesian Embassy in Beijing had since the end of 2007 covered Mongolia which had previously been covered by the Indonesian Embassy in Moscow.
At present, relations between Indonesia and Mongolia in all fields such as politics, law, security, social, culture and economy were now covered by the services of the Indonesian embassy in Beijing.
The ambassador said the Indonesian embassy in Beijing was now exploring cooperation opportunities such on increasing political and tourism cooperation.
He said that cooperation between the two nations so far was still limited so that it would be expanded in the future.
"I am planning to visit Mongolia next June to explore various fields of cooperation that could be expanded," the ambassador said. He said that his planned visit to Ulan Bator bore significant and strategic meaning.
"I will try to expand cooperation in different fields," he added. (*)

8 April 2008

Foreign investors to have access to state exports financing

Jakarta (Jakarta Post) - While deliberations over a bill on state-owned Indonesian Exports Financing Agency (LPEI) are still at an early stage, the government and the House of Representatives have agreed such services will be opened to foreign investors.

"The distinction between domestic and foreign investment is no longer relevant -- both government and House members agree the state exports financing will be accessible to foreign investment," said Hasto Kristiyanto, vice chairman of the special committee for the LPEI bill.

National Agency for Exports Development head Bachrul Chairi said domestic and foreign investors had the same right to export financing as long as they were registered under Indonesian companies.

"Our new laws on corporations and investment clearly state both domestic and foreign investors will be given equal treatment. So it is natural the financing be open to everyone," he said.

Hasto said the bill's only discrimination concerned financing for exports intended for markets exposed to high political risk.

"For exports to risky markets, for instance, Iran, the agency would only finance projects handled by state-owned firms and not by private ones," he said,

He further said House members involved in the committee had accepted the government's proposal for the agency's starting capital, which would come from government liquid assets, worth Rp 4 trillion, previously stored in the already defunct Bank Ekspor Impor Indonesia (Exim).

The government and the House expect the deliberation process to conclude this year and are hopeful the agency will begin operations early next year. Establishing exports financing is crucial for local industries that are reluctant to borrow from banks in fear of enduring high borrowing interest rates, which currently stand at 12 percent.

In the last couple of years, banks have been reluctant to lend to the real sector, preferring instead to target consumer credit, which continues to show significant growth despite its interest rates could climb to 17 percent.

An official draft on the bill states the exports financing agency aims to provide more affordable credits in three steps.

First, by issuing securities, second, by borrowing funds from short, medium or long term loans from foreign government, multilateral institutions or banks and third from grants.

Such fund gathering strategies were impossible for PT Bank Ekspor Indonesia (BEI) due to restrictions imposed by the central bank. BEI was established in 1999 after the demise of Bank Exim following the Asian financial crisis.

The agency can give credits to buyers, provide export guarantees and shipping insurance, all under one roof, in addition to providing credits with low interest for exporters prior to shipping.

The risks covered by the agency insurance services include, failure to export, payment failure, investment failure of local based exporters in the export market and destination and export failure due to political risks -- although only state firms are eligable for this coverage.

The draft also says all risks relevant to small and medium enterprises export activities will be covered by the government.

Despite the seemingly positive provisions, Barchrul said House members must be careful all benefits provided by the agency would not violate WTO regulations on subsidies. "We don't want the credits given by the agency seen as a hidden subsidy from the government," he said.

Benny Soetrisno, chairman of both Indonesian Exporters Association (GPEI) and Indonesian Textile Producers (API), said the export financing must also be available to credible exporters regardless of whether they had standing debts with banks. "I also think the agency must correspond to the central government programs, for instance by focusing on financing business sectors currently being prioritized by the government."