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Indonesian central bank may suffer 8.02 trillion rupiah deficit
2008-06-10 09:35:00
The Indonesian central bank may suffer this year a much bigger deficit than last year due to a costly interest payout to holders of its key certificates, local press said Tuesday. Bank Indonesia, the central bank, is expected to suffer a total deficit of 8.02 trillion rupiah (about 861 million U.S. dollars) by the end of 2008, as it has to pay the interest of its certificates. Last year, the bank suffered a deficit of 1.4 trillion rupiah (150 million dollars), reported major newspaper The Jakarta Post, citing central bank chief Boediono. The bank announced that foreign exchange reserves in the first quarter of this year stood at 59 billion dollars due to a rise in exports, but the figure fell to 57.46 billion in May.Indonesia News Blog: http://indosnesos.blogspot.com
More About: Business , Economy , Central

Drilling caused Lapindo mud disaster - report
2008-06-10 03:14:00
Drilling of a gas exploration well, and not an earthquake, set off a volcano that has been spewing boiling mud for two years and has displaced more than 50,000 people on the Indonesian island of Java, experts said on Monday. Records kept by oil and gas company Lapindo Brantas during the drilling of a gas exploration well called Banjar-Panji-1 show specific incidents that could have triggered the disaster, the international team of experts said. "We are more certain than ever that the Lusi mud volcano is an unnatural disaster and was triggered by drilling the Banjar-Panji-1 well," said Richard Davies, a professor of earth sciences at Britain's Durham University. "We show that the day before the mud volcano started, there was a huge 'kick' in the well, which is an influx of fluid and gas into the wellbore," Davies said in a statement. "We show that after the kick, the pressure in the well went beyond a critical level. This resulted in the leakage of the ...
More About: Environment , Tragedy , Disaster , Report , Drilling

ST Telemedia`s sale of Indosat shares to Qtel "unethical", KPPU
2008-06-10 01:37:00
The Commission for Supervision of Business Competition (KPPU) said the sale of Singapore Technologies Telemedia (STT)`s 40.8 percent stake in PT Indosat to Qatar Telecom (Qtel) is an "unethical act and a show of disrespect for an ongoing legal process.""While still involved in the legal case being handled by the Supreme Court, STT has sold its shares. This is tantamount to trampling not only on the KPPU`s but also on the nation`s self-respect," KPPU chief Syamsul Maarif said here Monday.Qtel on Friday (June 6) announced it had bought 40.8 percent of Indosat shares through Asian Mobile Holding which in STT`s structure is the owner of Indonesia Communication Limited (ICL) in whose name the Indosat shares were registered. The Qatari company paid 2.4 billion Singapore dollars or 1.8 billion US dollars for the shares. Not long ago, the KPPU ruled Temasek Holding, STT`s parent company, had violated Indonesia`s anti-monopoly law and ordered the Singaporean group to divest its stakes...
More About: Economy , International , Sale , Unethical

Munarman surrenders to Jakarta police
2008-06-09 18:03:00
Munarman, the commander of the Islam Defenders` Front (FPI)`s Islamic Legion, surrendered to the Jakarta police on Monday after being on the run since the recent Monas Square incident, a police spokesperson said."He came (to the Jakarta police headquarters) but there is no report about the exact time of his arrival," Senior Commissioner Ketut Untung Yoga, the Jakarta Police Headquarters` chief public relations officer, said here Monday evening.Munarman`s case was currently being investigated, Yoga said.Earlier, National Police chief Sutanto had repeatedly called on Munarman to surrender to the authorities.The police chief pledged a fair, legal process for Munarman, who is one of the suspects in the National Monument (Monas) incident of last June 1.Indonesia News Blog: http://indosnesos.blogspot.com
More About: Crime , Justice

Indonesia not freeze Ahmadiyah, but issues warning
2008-06-09 18:01:00
Indonesia has not frozen the sect of Ahmadiyah, but issued a warning not to implement their belief which could trigger conflict in the country, Indonesian home affair minister Mardianto said here Monday. Pressure has mounted to officially disband the Ahmadi movement in Indonesia, especially by Muslims, for its deviance from the true Islamic teaching, but right groups have opposed, saying it was against the freedom of having religion or faith. Minister Mardianto told reporters after a cabinet meeting at the State Palace that "there is no word of freezing. What we are doing now is to correct the way of their performing belief." He said, "Should any member of Ahmadiyah sect makes mistake, he or she must be warned." The minister said the policy also stipulated that any violationor attack conducted by each side would be charged by the law. "The state protects citizen from believing in any religion or belief," he said. "We expect the policy will avoid anarchy from happening," ...
More About: Indonesia , Issues , Warning , Freeze

Indonesian Muslims rally to demand ban on 'deviant' sect
2008-06-09 12:10:00
Thousands of white-clad Muslims have taken to the streets of the Indonesian capital to demand the government ban a minority Islamic sect branded "deviant" by top clerics.Around 5,000 protesters wearing white skullcaps and Islamic headscarves blocked the street in front of Jakarta's presidential palace to demand the government of President Susilo Bambang Yudhoyono ban the Ahmadiyah sect.Protesters held up posters bearing pictures of Rizieq Shihab, who was arrested last week after members of his radical Islamic Defenders Front (FPI) attacked religious freedom activists not far from the palace, injuring 19.The protesters marched five kilometres to the police headquarters to demand Shihab and seven other FPI members be released.Calls to ban Ahmadiyah have been mounting in Indonesia after a government board recommended in April the sect be disbanded over its "deviant" beliefs.Indonesia News Blog: http://indosnesos.blogspot.com
More About: Rally , Demand

Bumi Discovers 442 Million Tons Coal Reserves in Indonesia
2008-06-09 12:05:00
PT Bumi Resources, Asia's biggest thermal-coal exporter, said it discovered 442 million of tons of coal reserves in Indonesia 's part of Borneo island.The discovered reserve may increase the company's coal reserves by 31.5 percent this year, the company said in a statement in Jakarta. Bumi's shares rose.Indonesia News Blog: http://indosnesos.blogspot.com
More About: Business , Economy , Energy , Coal

Adaro to launch Indonesia?s biggest IPO
2008-06-09 12:04:00
Indonesia?s second largest coal miner, PT Adaro Energy Tbk, has set the price of its initial public offering at 1,100 rupiah per share, a senior executive of Danatama Makmur which managed the deal said on Monday. Vicky Ganda Saputra, vice president of investment banking at Danatama, told Reuters that the company will raise 12.3 trillion rupiah ($1.32 billion) by offering 34.8 per cent of its share capital, making it the biggest IPO by value in Indonesia?s history. Indonesia News Blog: http://indosnesos.blogspot.com
More About: Business , Economy , Indonesia , Launch

Standard Chartered considers Indonesia a benchmark for success
2008-06-09 05:49:00
The Jakarta Post talked to Standard Chartered group chief executive Peter Sands on the bank's plan to expand business here, and concerns for the community.The following are excerpts from the interview:Generally, by the benchmark of Standard Chartered banking in Indonesia , it's been a success story. We acquired the American Express Bank business here in Indonesia as well, so as to increase capabilities of both the corporate side of the financial institution, and the retail side as well.Do you think Indonesia has the potential to be like Brazil, Russia, India and China (BRIC)?I definitely feel there's potential for Indonesia. It has the GDP growth potential, and has the scale, population and natural resources to become another BRIC, which I think is a very exciting prospect for the country.There are quite a number of studies on how economies will grow to 2025 and 2050. I think Indonesia figures very strongly in the top 10, just outside the top five. There's a lot of opportunities ...
More About: Benchmark , Business , Economy , Success

Trading in Indonesia's Indosat halted after Qatar deal
2008-06-09 05:44:00
Trading in the country's second largest mobile phone operator, PT Indosat Tbk ISAT.JK, was suspended on Monday after Qatar Telecom QTEL.QA increased its stake in the firm to 40.8 percent. The Indonesia Stock Exchange said the bourse will ask for more clarifications on the transaction before lifting the trading halt.Earlier: Singtel disposes stake in Indonesia's IndosatIndonesia News Blog: http://indosnesos.blogspot.com
More About: Business , Economy , Trading , Deal

Nur Wahid asks Moslems not to be provoked by inter-faith conflict
2008-06-09 02:51:00
Dr Hidayat Nur Wahid, a member of the Advisory Board of the Prosperous Justice Party (PKS), asked moslems in Indonesia not to give up to provocations which might lead to inter-faith conflicts. "The guilty must be punished. Those who are not involved should not be intimidated," he said on the sidelines of the party`s 10th anniversary commemoration here on Sunday. Hidayat further said he personally disagreed to the use of violence as in the North Maluku gubernatorial election, the issue on fuel oil price hikes which resulted in violence and even in the celebration of Pancasila (state ideology)`s anniversary which also ended with in violence. "Now there are sweepings at offices and houses by some elements of certain organizations, the action is against the law. Hence the state should uphold the law to guarantee security for the people by the state," said Nur Wahid who is also Chairman of the People`s Consultative Assembly (MPR). Any form of violence must be avoided, he stressed...
More About: Faith , Inter , Conflict , Moslems

Indonesia to open trade promotion centers in 11 cities abroad
2008-06-09 02:48:00
Indonesia will open trade promotion centers (ITPC) for export products in eleven cities in the world in 2008 to strenghten penetration to foreign markets. "We have just received a permit to process another eleven. We will maximize the function of the ITPC to help promote and identify market opportunities and inform them to Jakarta," Trade Minister Mari Elka Pangestu said here over the weekend. The eleven cities are Shanghai (China), Busan (S. Korea), Chennai (India), San Diego(US), Chicago (US), Barcelona (Spain), Lagos (Nigeria), Vancouver (Canada), Jeddah (Saudi Arabia) and Lyon (France). Earlier, Indonesia already had ITPC offices in nine cities Osaka (Japan), Budapest (Hungary), Los Angelos (US), Milan (Italy), Sydney (Australia), Sao Paulo (Brazil), Dubai (United Arab Emirates), Hamburg (Germany) and Johanesburg (S. Africa). In the meantime, General Chairman of the Indonesian Furniture and Handicraft Producers Association Ambar Tjahjono asked the government to make ...
More About: Business , Economy , International , Indonesia , Promotion

Swedish diver describes brush with dragon in Indonesia
2008-06-09 02:46:00
A Swedish diver who spent two nights marooned on an Indonesia n island with four other Europeans told Sunday how she had to fight off an aggressive komodo dragon with her weight belt. Helena Nevalainen told AFP the dragon, a member of the largest lizard species in the world, lunged at her three times before it was driven off as the divers awaited rescue on remote Rinca Island in the Komodo National Park. "It was big... It tried to have a go at my feet," she said a day after she and her companions were rescued at the end of a two-day ordeal including more than 30 hours on the dragon-infested deserted island. "I threw my diving belt. He came back and bit my diving belt and then he let go. After that he cam back one more time," the 38-year-old tourist said. The Swede, three Britons and a Frenchman struggled to shore on Rinca Island overnight Thursday after getting caught in a strong current late Thursday afternoon as they dived in the treacherous waters of the Komodo Park. She said ...
More About: Fauna , Flora , Brush , Diver

Singtel disposes stake in Indonesia's Indosat
2008-06-08 09:48:00
Singapore Technologies Telemedia (STT), a wholly-owned unit of state-linked investment firm Temasek Holdings, has sold off its interest in Indonesian telecom firm PT Indosat to business partner Qatar Telecom, the company said.Qatar Telecom will pay 1.8 billion US dollars for the 40.8 percent stake in PT Indosat held by Asia Mobile Holdings, a joint venture firm between the Qatari outfit and STT, the company said Saturday."ST Telemedia will no longer have any involvement in Indosat," it said in the statement.The disposal of the stake came after an Indonesian competition watchdog ruled that Temasek has broken the country's anti-monopoly laws and ordered the Singapore investment firm to divest its holdings in either PT Indosat or PT Telkomsel.Temasek indirectly holds 35 percent of PT Telkomsel via its 56-percent owned unit Singapore Telecommunications Ltd (SingTel).Indonesia News Blog: http://indosnesos.blogspot.com
More About: Business , Economy , International

Indonesia's natural gas production surpassing crude oil
2008-06-08 09:46:00
Indonesia's natural gas production has continued to increase from year to year and is now replacing the position of natural oil production which is now declining, a legislator said.Chairman of Commission VII of the House of Representatives (DPR) which deals with energy affairs, Airlangga Hartarto said Sunday that natural gas whose production was increasing would continue to become a strategic commodity in the future."The increasing volumes of gas and coal production will make these commodities to continue to be strategic in the future and to replace the position of oil which is declining," he said.A hearing between Commission VII of the House and Energy and Mineral Resources Minister Purnomo Yusgiantoro on Wednesday agreed to include gas and coal production into the assumption of the 2009 state budget.Airlangga said both sides agreed to include gas and coal into the assumption of the 2009 state budget because the state revenues from these two commodities were significantly big.Mini...
More About: Natural Gas , Natural , Production , Crude Oil

Mount Soputan spewing sand and thick smoke
2008-06-07 13:18:00
Volcano Soputan located between South and Southeast Minahasa districts, North Sulawesi, on Friday at about 16:15 local time spewed sand black clouds into the sky.An eyewitness, Inyo Rumondor, as contacted by Antara in Amurang city, the capital of South Minahasa, about 15 km from the explosion said the billowing hot ashes formed high cloud which was visible from Amurang city.Another eyewitness, Jerry Rawis who is also a local resident of Molompar I village, Southeast Minahasa district, through his cell phone said that the ashes were mixed with mud spewed by the volcano. A number of houses in Lobu, Silian and Tombatu villages were reported to have collapsed because of the tremor. But there was no report on residential houses were damaged or causualties caused by the eruption. Mount Soputan erupted at around 09.00 a.m. on Friday, spewing hot ashes. "The tremors caused by the volcano`s activities are very strong. A total of 45 tremors have been recorded so far," Sand y Manengkey,...
More About: Environment , Tragedy , Disaster , Smoke

Passengers' laptops now subject to security checks at Jakarta int'l airport
2008-06-07 13:16:00
The operator of Jakarta 's Soekarno-Hatta international airport has instituted tight security checks on passengers' laptops at entrance gates to prevent the equipment's misuse for negative purposes, an airport official said on Saturday. "We have taken the measure for passengers' own safety because certain people could use laptops for negative purposes," Herry Bakti, the airport's administrator was quoted by the national Antara News Agency as saying. The tight inspection on laptops was meant as an anticipative measure against the illegal use of documents for certain purposes, including terrorist activities, he said. The inspection on laptops was done with the help of X-ray devices and by body search, he said, noting that laptops could also be used to hide heroin. Security checks on passengers' laptops had now become part of airport security officers' routine duties to help guarantee flight safety, he said.Indonesia News Blog: http://indosnesos.blogspot.com
More About: Laptops , Crime , Airport

Indonesia 'keen' to explore Rudd's Asia-Pacific plan
2008-06-06 12:50:00
Indonesia is "really keen" to examine an ambitious plan by Prime Minister Kevin Rudd to create a European Union-style grouping for the Asia -Pacific , an official says.Mr Rudd said on Thursday an Asia-Pacific community, including the massive economies of China, India, the United States and Japan could be established by 2020.Indonesian government officials said they would discuss the proposal with Mr Rudd when he makes his first prime ministerial visit to Jakarta to meet President Susilo Bambang Yudhoyono next week."We're following the issue with interest. We are really keen to study the issue further," Foreign Ministry spokesman Teuku Faizasyah said."I suppose the visit of PM Rudd next week to Indonesia will be an occasion for us to have a clear reference of what exactly [is] the vision of his statement."Indonesia News Blog: http://indosnesos.blogspot.com
More About: International , Indonesia , Explore

Rudd heads to Indonesia
2008-06-06 04:57:00
Indonesia's Government says it is looking forward to hearing directly from Prime Minister Kevin Rudd when he visits Indonesia next week.Bilateral ties experienced some challenging times in the late 1990s, but Mr Rudd has inherited a relatively healthy relationship from the Howard government.Indonesia News Blog: http://indosnesos.blogspot.com
More About: International , Indonesia , Heads

Police mount search for Munarman in Cirebon
2008-06-06 04:43:00
Local police have mounted a search for Munarwan, the "Islamic Legion commander" wanted in connection with the Monas Square incident in Jakarta, who is believed to be hiding in Cirebon`s northern coastal region, a spokesman said. "It`s quite possible Munarwan has escaped to the Cirebon region. In fact, I have been instructed by the National Police Headquarters to look for him in this region," Cirebon Regional Police Chief Senior Commissioner Nasser Amir told the press here Thursday. He said police detectives were deployed in the field on Wednesday to scour locations in the region where the fugitive might have taken refuge. Meanwhile, at least one thousand people coordinated by the Cirebon Nahdlatul Ulama Extended Family (KBNU) on Thursday staged rallies in the city condemning the violence committed by Islam Defenders` Front (FPI) in the Monas Square incident in Jakarta last Sunday. They also demanded the FPI`s disbandment and prosecution of the perpetrators of the violence. T...
More About: Crime , Justice , Search

Wanted Indonesian radical thumbs nose at police amid crackdown
2008-06-06 04:42:00
A fugitive Indonesian extremist who allegedly led an assault by stick-wielding fanatics on a pro-tolerance rally taunted police in a video and emails purportedly sent to media here Thursday.Munarman, the alleged "commander" of the attack on the peaceful demonstration in Jakarta on Sunday, remains on the run despite a police crackdown on the Islamist group responsible for the violence.In a video sent to television station ANTV he demands the president outlaw the minority Ahmadiyah Islamic sect, deemed "deviant" by religious authorities in the Muslim country.He also demanded the closure of a US research laboratory in Jakarta as it "no longer has any legal foundation to operate in Indonesia."Police spokesman Nataprawira said Munarman was nothing but a criminal and no one was listening to his demands."There are no negotiations. If he engaged in a crime we will act against him," he said.Indonesia News Blog: http://indosnesos.blogspot.com
More About: National , Crime , Justice

Gus Dur Thanks President for FPI Leader`s Arrest
2008-06-05 13:54:00
Former president Abdurrahman Wahid or popularly known as Gus Dur has thanked President Susilo Bambang Yudhoyono for the arrest of Islam Defenders` Front (FPI leader Habib Rizieq Shihab. "And I will be more grateful if FPI is dissolved," Gus Dur said at a press conference here on Thursday. Also present at the press conference were Rev Nugroho Tjahjadi, Romo (Father) Beny Susetyo, Wahid Institute Director Ahmad Suaedy, and Demos (Center for Democracy and Human Rights Studies) Director Asmara Nababan. Gus Dur said he had so far called for the dissolution of FPI because the organization had often violated regulations and even the Constitution. "If the government does not want to dissolve the FPI, we will do it. The government is not the only party that can take action," Gus Dur said. Meanwhile, Asmara Nababan welcomed the arrest of the FPI activists, although it was a bit late. Nababan hoped the police would do more, by not only arresting FPI members but also dissolving...
More About: Crime , Justice , Arrest , Leader

Indonesia Raises Key Rate as Asia Battles Inflation
2008-06-05 10:54:00
Indonesia's central bank increased its benchmark interest rate for a second straight month, as surging food and energy prices force policy makers across Asia to tackle inflation.Governor Boediono, in his first policy decision since taking over the post, raised the rate used as an indication for bill sales to 8.5 percent from 8.25 percent. Five of 17 economists in a Bloomberg News survey predicted the decision, announced by the central bank in Jakarta today. The other 12 expected a half-point rise.Bank Indonesia expects the rupiah to strengthen, which may also help slow inflation to a ``single-digit'' figure next year, Deputy Governor Budi Mulya said today.Financial services companies such as PT Bank Mega are preparing to raise lending rates, said Daniel Budirahaju, credit director at Bank Mega. ``Definitely we will raise rates because the cost of funds will increase,'' he said.Costlier wheat, soybean and oil pushed Indonesian inflation to 10.4 percent in May, the fastest in 20 ...
More About: Business , Economy , Indonesia , Inflation

Indonesian prosecutors removed over anti-corruption failures
2008-06-05 10:52:00
INDONESIA'S attorney general has removed 25 district prosecutors for failing to meet the minimum annual target of three corruption cases, an official said on Thursday. A spokesman for the Attorney General's Office said they had been stood down as part of a long-term drive to tackle chronic corruption. They are expected to undergo extensive retraining before being considered for re-appointment, reports said. 'There are 25 heads of district prosecutor offices where handling of corruption cases stood at nil,' Deputy Attorney General Muchtar Arifin was quoted by the Koran Tempo newspaper as saying. The evaluations covered 2007. Indonesia News Blog: http://indosnesos.blogspot.com
More About: Indonesian , Corruption , Anti

Indonesia foreign exchange reserves $57.46 bln end-May vs $58.77 bln end-Ap
2008-06-05 04:04:00
Indonesia's foreign exchange reserves fell 2.2 percent to $57.46 billion at the end of May from $58.77 billion at end-April, data posted on the central bank's website showed Thursday.Base money rose to 334.0 trillion rupiah from 324.19 trillion rupiah due to an increase in banks' deposits with Bank Indonesia, the central bank.Indonesia News Blog: http://indosnesos.blogspot.com
More About: Business , Economy , Indonesia , Exchange , Foreign Exchange

Munarman included in wanted persons list: police chief
2008-06-05 01:54:00
National Police Chief General Sutanto said that his side had included Munarwan, commander of "Laskar Islam" (Islamic Legion) in the list of wanted persons (DPO). "He has become a fugitive. We call on him to surrender, the sooner the better. He has said he is ready to be responsible based on the law. Here we have law enforcement," the police chief said after a meeting with President Susilo Bambang Yudhoyono here on Wednesday. He said that as one of the leaders of persons who attacked activists of the National Alliance for Freedom of Religion and Faith in National Monument (Monas) square on Sunday, Munarman must be responsible. "As a leader he must be responsible. Now he has become a fugitive and has been included in the DPO. He is clearly a suspect," the police chief said.Indonesia News Blog: http://indosnesos.blogspot.com
More About: National , Crime , Justice

Indonesian couples told to plant trees before marrying
2008-06-04 14:00:00
PROSPECTIVE newlyweds in an Indonesian province are being given one more promise to honour: planting trees to help slow the rapid deterioration of the country's forests. As Indonesia marks World Environment Day on Thursday, husbands- and brides-to-be in Gorontalo, a rugged mountainous province on Sulawesi island, are being required to plant 10 seedlings supplied by the local government, said Mr Hasyim Alidrus, head of the religious affairs office. It is part of a nationwide 're-greening' initiative launched by President Susilo Bambang Yudhoyono at the Bali Conference in Bali last November when million of trees were planted across the vast archipelago. The program, critics say, is largely symbolic in a nation that is losing its forests at one of the fastest rates in the world due to illegal logging, mining, new oil palm plantations and slash-and-burn land clearing. Indonesia News Blog: http://indosnesos.blogspot.com
More About: Trees , Couples , Told

Sea water inundates parts of Indonesia's capital
2008-06-04 10:49:00
Sea water inundated parts of Indonesia's capital overnight, flooding homes in the north of the city with up to 70 centimetres (2.3 feet) of water, officials said Wednesday.However, the waters, which poured into homes despite reinforced defences, were less severe than authorities expected, a North Jakarta public works official who identified himself as Eko told AFP.The World Bank last week warned that the peak of an 18-year astronomical tide cycle would combine with storm surges to flood swathes of the capital, as well as shutting off the toll road to the city's international airport.The airport road was untouched by the surging water and the early warning allowed the public works authority and residents to reinforce defences with makeshift sandbag and stone barriers, Eko said"We had been anticipating the high tides and warned people in flood-prone areas in North Jakarta to prepare for the floods caused by the high tides," Eko said.The peak of the flooding hit between 9.00 pm (1400...
More About: Environment , Cities , Water , Parts , Capital

Indonesian police detain radical Muslims over attack
2008-06-04 10:45:00
Indonesian police arrested at least 59 Muslim hardliners Wednesday for their alleged involvement in a violent attack over the weekend against a rally by interfaith supporters. Indonesia's national police spokesman, Inspector General Abubakar Nataprawira said that some 59 members of Muslim hardliner group Islamic Defenders Front (FPI), had been detained for questioning in connection with Sunday's violent attack. 'Fifty nine people, including Habib Rizieq Shihab, were taken to the Jakarta police headquarters for questioning,' Nataprawira said, referring to the hardliner group's chairman. 'They will be questioned before police figure out how many of them were involved in the incident in Monas on Sunday,' he said, adding that the Jakarta city police had 24-hours before they had to name suspects. The police were also hunting down another radical activist who claimed responsibility in the attack and have listed him as a wanted person, Nataprawira said. Jakarta city police c...
More About: National , Indonesian , Crime , Justice , Police

Bank Indonesia expected to raise key rate by 25-50 basis points: economist
2008-06-04 04:04:00
Bank Indonesia (the central bank/BI) is likely to raise its key rate by 25-50 basis points at the meeting of its board of governors on Thursday as the on-month inflation rate in May reached 1.41 percent, an economist said. "I think the BI Rate will be raised by 25-50 basis points this month in view of the high inflation rate last month," Fauzi Ihzan of PT Standard Chartered Bank said on Tuesday. The rise in BI Rate was not aimed at easing inflationary pressure but at stemming the expected high inflation rates, he said. The current inflation was chiefly caused by the global inflation triggered by a surge in food and energy prices, he said. "The current inflation is caused by a surge in global food and energy prices that no any other central bank in the world can stem. So, the rise in BI Rate by 25 basis points or more will only stem the expected high inflation rates in six months` time rather than to reduce the inflation rates," he said. Even if the BI Rate was raised by 2...
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