AFTER SEA TOLL, JOKOWI AIMS FOR AIR BRIDGE LOGISITIC?

Coordinating minister maritime, rizal ramli claimed the success hint of sea toll that is one of the main program of government to simplify the logistic distribution of the country. For the information, the regular visitation of president jokowi to the entire regions of the country like papua, maluku always highlights the extreme difference of goods price due to unwell management of distribution. 

For instance the price of cement per sack which is Rp 65000 in java will be around Rp 1 billion in isolated area of sorong papua which is difficult to be reached by land transportation. 

Based on the case, government through coordinating minister is to build air bridge logistic which is the continuation of sea toll as the following program. Government stated the utilization of public airplane like hercules of air force can be used to distribute logistic to the isolated places like papua inland. Through the approach, the goods price of cement for instance can be pressed to around Rp 350000 to Rp 500000 per sack or around 50% less than the regular places. 

Rizal ramli is on going coordinating with related institution like air transportation directorate to prepare for the means of air bridge logistic licensing and means. This minister said that the government will maximize the use of air  public transportation like hercules for the sake of public service.

MANDIRI SHARES THE 60% MARGIN OF E-MONEY MARKET

Mandiri bank seems to foresees the big opportunity of e-money business this year. This one of big stated owned bank is optimistic to release around 7.2 billion e-money card by the end of 2016. 

Rahmat broto, senior vice president of e-money mandiri bank is quite confident with the target of achievement looking to the fact that mandiri shares the majority of 60% market share of e-money business. 

This year, in the first quarter of 2016, mandiri bank reaches 45.5% increase of e-money around 495 million rupiahs higher than last year of which they only reached 14.14% of e-money business.

There are some strategies applied to expand the business like co-branding with another banks. So far mandiri has made the cooperation with jateng bank and plan to cooperate with banten bank too. 

Meanwhile another big private sector BCA bank also seek to expand the same business. BCA itself shares around 30% of market. According to its manager head of consumer card, santos BCA plans to raise 20% increase of e-money business this year. 

E-money market has been the promising bank business prospect through the progress of technology which demand the use of it like toll pay, buss way e-money, train card and money others. The breakthrough of government to provide the easiness for public transportation has resulted on the high demand of e-money. 

ULTIMATE WAYS AND TIPS TO REACH FINANCIAL FREEDOM

It is only after being employed and realized of almost no saving from total wages for almost three years, I came to think the importance to set a goal for financial achievement. It has been three years that all my salaries seem to blow away like a wind. It only leaves the regret of having no awareness of money management. It is only that time I realized how important  having a truly ultimate goal of having financial stability or goals.

Financial achievement is the ultimate purpose that everyone wishes for. It is true that money is not every thing but everything needs money. Just look at the moment you come to the expensive restaurant, you are surely not as happy as those who afford to buy every menu they want rather than you who have the problem with money thus opting the cheaper ones even if you desire the more expensive ones. That is how money is so decisive in daily life.  Money is not an ultimate goal nor guarantees for success or happiness but the reality clearly explains how having money making all things easier for people.

But how to achieve that goal if only certain people afford for that?

Definitely every one of us deserves for financial freedom no matter what kind of job, position you have provided you have clear and well managed goal for your money. For it's a question of how you manage the money and never how much you can earn a month?

This means all of us have a chance to reach that goal even if we earn not much. Here are the things you have to bear in mind to manage your money well.

First, Identify your Income and life cost per month

The calculation of income and cost follows the month periods. So, you must know how much you earn each month from your job or from small business that you have built. After that, you have to write down all the expenses starting from you clothes, your daily meal, electricity bill and money others. And the rest of the money, 1/3 of it you can use for unexpected expense and 2/3 of it you can save in your bank account. For example you have salary 500$ and all your expense is 200$, so 100% is for unexpected expense meanwhile 200$ you can save in the bank. In a year you can have 2400$  plus the interest. Imagine without management, you won't know where the 2400$ goes just like what i experienced. Try to stick to that list of your expenses and never violate from this plan as you go through the months. This will make your more prudent money management attitude and acquiring a good habit. 

Second, reducing your unnecessary cost and avoid bad habits that cost you much

There are priority scale for all your expenses. So all that are considered unnecessary expenses can be annihilated like eating in the restaurant, regular shopping, and money others. Meanwhile if you have bad habits like smoking or drinking, you should avoid from those and it will decrease significantly your life cost. On the contrary, those money from reduced expenses you can use to increase your saving. Imagine if every month you lose 30 packs of cigarettes and 10 bottles of drinks, estimately you will lose 400$ which you can save instead of costing for not good habit of yours.

The third, opting the simple life style

Life style is the personal choice for all. But do you know that life style can lead you to eternal poverty? It is true. The reality you can observe that starting from the choice of fashion, meals, people have their own choices or styles. In order to reach the success, avoid the luxurious life style, Avoid using the expensive brand of clothes, jewelry, expensive food because the spendthrift people almost never reach the success of life. It is because usually those type of person neglecting to save their money, worsenly they even have to debt or using credit card just for the need of life style. This is a danger. In order to bring your self in social relationship you just can be in simple life but your whim, neat is the right choice. Usually the successful ones are those who are just so simple in their life.

The fourth, say no to debt and free of credit cards

Debt is always a trouble for you especially if you don't care with the right strategy to cover them fast. The more you are in debt the more you are in misery to pay for its heavy burden of interest. The right advice if you are engaged with it, try to cover them as fast as possible rather than long tenor options, Usually the long tenor has bigger interest and this only makes a disaster for your plan of financial freedom. Or even if you are forced by condition to be in debt try to use the bank loan which has a proportional interest and has a clear regulation, It helps you to manage for covering and has a flexible procedure of payment suitable with your plan and income. 

The other thing, a recent life style of using credit card is the dangerous virus killing slowly its users, It is because sometimes the users are mesmerized by easiness of it and forgetting the debt it costs in every transaction made. Credit card comes up like a ghost that makes you uncomfortable upon the deadline of its invoice especially facing the brutality of collectors that are truly the recent phenomenon.

The fifth, use your talents to build extra income that will turn to your mainstream income

Have you heard that people are more successful from their talent and not from their primary job. It is true, the founder of facebook, amazone, the spectacular businessman like the owner of KFC and many other examples get success after capable to use their talent well. This means that not only to look for the extra income by exercising your talent but also it can bring you to incredible success in your life. If you are an english teacher, you can teach for private lesson for the students until you manage to open your english lesson training which has numerous students. So it won't only the freelance for you but the  main income instead. Here it needs your capability to foresee the opportunity to use your talent for a massive income stream. You can be a music teacher and opem your own studio. You can teach by means of internet and you have billions of students who pay for your skill. This is amazing of course, what you need is only to realize your capability and use it as the great threshold leading you to financial freedom.

The sixth, be a boss for you own

You reach this state after the saving money you have and deciding for the kind of business you have, It all begins from your realization of talent as i explained before, If you are good in marketing you can engage in franchise, In this case all you need is your own conviction and courage to start and sacrifice  a thing for the sake of the greater one. 

What do I mean sacrifice?

If you are an employ and you think you have already enough saving to start a business than sacrifice your job, quit and start for your business. Remember majority of successful persons are the businessman. This means unless you are a boss of your own, it is hard to be successful for you then, But it takes courage to take for a consequence of the probability ups and downs in business you are to run. But if you have a great conviction, it is just a matter of time that you are turning to be a millionaire. 

The seventh, don't hold your money tight. investing it. 

You can invest your money through various ways, You can run for property investment that always has promising high return, For example buying house than you can sell it in years later when the price is already multiplied. You can build dormitory and rent for it. This will give you regular monthly earning. You will just wait for the end of month that money will run to your account. 

Besides, you can invest in obligations, capital market which has the least risk and money others

lastly, never forget to be greatfull to the giver of all you have who is your GOD. This is inexplicable, one of them is to be generous to the poor. The more you give the more you receive. This is unwritten law that truly takes place.

LION AIR IS BLAMED FOR VIOLATING SOP GROUND HANDLING

Lion air airline has not ended in an ultimate resolution. The airline has to face the accountability before the senate after the transportation directorate relayed the formal report of investigation before the senate. Lion air is under the sanction of transportation directorate for negligence of delivering the passenger to the wrong station in seokarno hatta international airport. There are some violation after the investigation subjected:

The first, Lion air delegated the ground handling responsibility to the third party, PT sari Indah. PT sari indah failed to monitor the ground handling well thus resulting on wrong procedure.

The second, Lion air doesn't equip the officers with good and sufficient telecommunication means thus the possibility of communication mightly possible. Lion air violated sop and has to responsible for it.

Third, the clerk did not give a briefing to the driver of the shuttle, including during a replacement of driver. Moreover, no officer who provides information or directing passengers and the driver.

Fourth, groubd handling Lion Air  never provides training to drivers  shuttle bus. In fact, the investigation team found no SOP handling of passengers to the bus drivers who will take the passengers to the airport terminal.

Transportation ministery itself already provided recommendations to the Lion Air to meet all the flaws which are revealed from the investigation. Lion Air is given up to 30 days ahead to qualify it.

If within a 30-day requirement is not met, the transportation authority will immediately revoke the license of Lion Air ground handling.

Lion air  is allegedly to receive tough sanction from minister transportation Jonan after misleading the passengers to the domestic station instead of international station. There fore, they skipped the immigration checking that is considered as the big mishap toward law prevailing. Coordinating Political, Legal and Security Affairs Minister Luhut Pandjaitan  also agreed to imposed strict sanction to lion air considering the violation toward prevailing law on account of airline negligence  to lead passenger according to the procedure. 

Why kivaln zein accused this pdip politician pro communist (PKI)?

Communist issue ever blowed up, reaping the controversy recently. It began with the anticipated acts of police to warn for the using of PKI attribute, hammer and sickle which is stick to the communism. It was even the polemy when  some assumed that over reaction of police and law enforcers called lebay. One of the figure who is anti PKI kivlan zein even accussed any suspicious program like village fund as the gateway for the revival of pki, a stain in the history of the state. 

Former Chief of Staff of the Army Strategic Reserve Command Major General Retired Kivlan Zen who accused pdip politician, sujatmiko to  support the movement of the Indonesian Communist Party (PKI).Kivlan assumed that the struggle of jatmiko for the farmers and the regulation plan for the propserity of farmers is a definite slit for the revival of PKI. The well being of PKI, according to the pressumption of kivlan makes the villagers are rebelling against government thus a timing for communist revival. 

On the other hand, pdip politician has not responsed seriously to the accusation. He claimed that not a serious and qualified statement since he is on a right track to implement the government program bolstering well being of farmers. He added, it is a duty of legislator to make regulation of farmer or else senators are never at all. 

According to Budiman, the Kivlan opinion baseless and unworthy of public consumption." No need to be addressed, even reducing the intelligence of the nation of Indonesia. Yes sorry for my course. "

Budiman asserted, carried Kivlan opinion is  just a waste of time and no other party contesting the issue. "Only one person screaming" he said. "This nation has been in continouing progress and all of  sudden there is a retired talking unnecessary issue unworthy to be concerned."

SILO MARITIM CORP TO EXPAND MASSIVE INVESTMENT

PT. silo maritime perdana, a corporation engaging in shipping  plans to expand massive investment. This big company aims for 20 billion dollar profit this year by opening more ship fleet in new route of ports. 

In a line with the maritime shaft platform of the government, silo maritim corp forsees a good opportunity of investment providing more ships on routes, long and short provided by the government. The minister of transportation himself last night expected and signaled the involvement of private sector company to boost the sea toll program to support the efficient business cycle looking the fact that the country comprises of archipelago and shipping for goods is indispensable. 

Theresia herjati, the finance director of silo said that the company targets for 50% profit this year. It is around 6.8 billion dollar after last year they are able to attain 15 billion dollar. The company claimed to have established the contract projects with numerous partners and to conduct business development through the inclusion of 50.84% stake in the shipping company which is engaged in the oil and gas industry, pt. suasa benua sukses.

The fund to acquire the company coming from initial public offering estimatedly 70-80 billion USD, while through the conduct, silo expect for the profit raising 50% than last year.

In its first stock offering, the company offers a stock price around USD 117-140 per share. Where the company will sell shares as many as 600 billion shares, or 23.08% of the issued and paid-up capital after the IPO. Director of Maritime SILLO Prime, Edi Yosfi said, in his first action of the stock offering, the company appointed PT Lautandhana Securindo and PT UOB Kay Hian Securities as underwriters.

SILLO Maritime currently owns and operates 8 fleet. Ownership shares of the company controlled 50 percent by PT Karya Gemilang Sinergy and 50% by PT Maxima Prima Sejahtera. In general, the company is experienced in dealing with the clients who come from the companies of international oil and gas that has a high reputation among others, China National Offshore Oil Corporation SES Ltd (CNOOC SES Ltd), Petrochina International Jabung Ltd, Total E & P Indonesia, Chevron Indonesia and Conoco Phillips Indonesia Inc.

Silo maritime assured for promising prospective of its new business based on the healthy financial condition, conducive circumstance and regulation of the government, competent management and sustainable opration.based on this, It is believed that the ipo of silo maritime will get positive response for the investor of oil and gas companies to conduct short and long term contract project. 

Looking to  the global trend of oil and gas which is capsizing down, silo stay optimist that there soon be a turn over in which the price of oil and gas soon to show upward trend. IMF released the report that the oil price has been in its lowest point in the first annual of 2016, thus the possibility to recover and upward trend is strongly feasible. 

Is jokowi worth of blame of economy slowdown and rupiah weaking afer being a temporary hero?

It still remain fresh to our mind the worst period of rupiahs weakening months ago, it's even touching near to Rp 15.000 per dollar. Most economy analysts at that time claimed it as the worst since the reformation era, the capsize of soeharto regime in history of the state.

Since the era of democration has appealed, there has been not much massive progress in term of economy indicated by infrastructure, competitiveness, autonomy. The country still lean on much on the rich country like USA to lend the money for yearly budget. 

Now, the dramatic political history of incumbent president jokowi of which people commonly predicting him as hero to bring the economy for better still facing the similar challenge at least in his 2 years presidency. Since the very beginning of his reign, jokowi face the turbulence of currency crisis by which rupiah touched the lowest level in history. People started to doubt his ability yet a sudden restoration to bring back rupiahs rate to rp 13.000 even got the kudos from USA president, barack obama. It was seemingly a magic, people relied much on the super capability of jokowi almost like flipping the hand. The government then claimed that it was the success of 4 economy policy package to restore the weakening rupiahs. 

Through the formal report of first quarter economy growth, there is a red note that government even failed to equate the consensus of economy growth 5.1%. They only reached 4.92% still too far from the main ambition to reach the growth of 8% by the end of jokowi's reign.Jokowi blamed on his helper,minister of failing to absorb the budget effectively resulting to the embarrassing mark of economy growth rate. This is admittedly a failure nevertheless, the government surely in serious commitment of working through the breakthroughs and infrastructure established massively. 

The slowdown of economy basically the global issue and the entire world is grappling for restoration. Mostly it is influenced by the AS economy which seeks to recover from crisis. It's the rising of interest rate, the main issue that becomes the focus of global economy. The USA economy that signal to slowly restored to stable is mostly heading to the decision of USA government to rise the fed interest rate. This is a good news for global economy including indonesia that relies much on it. This global economy dynamic also contributes to the slowdown and uncertainty of economy of the state. 

Lately, market indicators show the sluggish tendency. Rupiah seems to be in a hint of disaster after being recovered from previous weakening. Market indicator like IHSG also sags to worse level after in previous months touching the high level. Even the big impact of global economy crisis alerts on the banks. In first quarter, all the banks reported the high non performing loans,the rising of debitor capable to pay for the credits. On the other hand, the tax income in spite of the tax amnesty policy failed to boost the increasing revenue. Thus even to sustain the running programs, government has to borrow the money which is basically a dilemma budget strategy of government. 

It seems the issue of  slow down economy will be in long term. It is because of some global issues like the issue of the release of the United Kingdom from the European Union even more rampant. This term is more commonly known by the term "BREXIT" which owns the stands of British Exit. Such issues like it or not affect the movement of the economy. David Cameron, the British Prime Minister, in his campaign at the election had expressed their referendum to determine the status of the country's alliances in Europe. Some experts of the country also agrees that Britain is considered not get much benefit from fellowship do. This referendum will take place on June 23.

Prolonged economic slowdown further exacerbate the situation. Especially slowing developing countries that are considered as a driver of the economy, such as China and India. The implication, economic growth projections RI repeatedly circumcised and even make the country risks are higher than ever. In the financial sector, the economic slowdown makes the status of national banks started to alert. The ratio of non-performing loans appears to be rising. The risk of default are now haunting.

Government is definitely in dilemma to boost the economy growth between the efficient programs for inclusive economy growth and the option to add the debt. Is jokowi worth to be blamed? definitely not, unless the issue is used for political means. What about optimism for global economy?

Mandiri and BRI bank, stated own corporation decrease the rates of micro credit

The stated banks, mandiri and bri became the first announcing new platform regarding rate policy of micro credit. 

The trend of high rate especially micro credit of banks has become the shaft before the government before the objection initiated by the government to decrease the rate. 

Mandiri bank head to offer the flat lower rate micro credit for 6-7 months around 15% for the new debitor. Meanwhile, BRI bank offer the rate around 17% to 20%. 

Both of the banks admitted to target for the increasing demand of customer after the lowering rate propose for micro credit which encompasses large scope of market segment. Mandiri micro and business director, tardi said they aim to achieve  20% target for micro credit or around 51 trillion rupiahs in the end of 2016, higher than previous period 45 trillion rupiahs. 

Meanwhile, BRI target for 213 trillion rupiahs afer the achievement of 178.9 trillion rupiahs last year.

The initial discretion  of BRI and mandiri banks to lowering credit rate is basically still far from the main target of bank of indonesia to gain single digit rate in the end of 2016. The minister of fund and monetary in previous months called for the sinergic implementation of agreement to lower the rate after the bank of indonesia decrease its rate from 7 to point 6.75 expected to follow by banks as the area executor for the policy. 

Responding to the regulation, mandiri bank and bri opt to reduce the cost fund to attain the consensus with the goverment aiming for single digit rate in the end of 2016.

Jokowi failed to reach the target of economy growth in terms of number

In the first quarter, the economy growth of the state reached only 4.92% less than the same period of previous year which was 5.04%. This achievement of government is still below the market consensus which is 5.1%. 
Regarding the failure to boost the rate of economy growth, jokowi blamed on his ministers who fail to execute the rapid absorption of budget and programs including 4 consecutive economy policy packages expected to increase the rapidity of economy growth yet proven to be ineffective.
Jokowi thus plan to call his ministers for the evaluation of economy policy package in presidential palace.


As reported by BPS data, Gross domestic product (GDP) or output economic activity Indonesia during the first quarter of 2016, only Rp 2,947 trillion, is not much different from the GDP the fourth quarter of 2015 amounted to Rp 2.945 trillion, even lower compared to the third quarter 2015 Rp 2,998 trillion.

This means during the first quarter of 2016, jokowi fail to bring significant change in economy despite series of policy economy package to boost investment, bolstering competitiveness, and increasing purchasing power. Jokowi is also popular for his breakthrough in restructuring cumbersome bureuacracy and groundbreaking the infrastucture yet bring no significance on the economy growth signaled by lower scale of rate below market consensus. 

on the other hand, the global economy slowdown places impact indicated by the lower gross domestic product worse 

compared to the same period of last year. The export to china for instance, the export of Indonesian GDP continues to shrink from Rp 599.3 trillion in the first quarter of 2015 to Rp 533.6 trillion in the first quarter of 2016.
Facing this difficulty of gross income makes the government has to find option in the midst of the main pillar of revenue from tax which encompassing almost 70% is still below the target of government. By the end of April 2016, citing data from the Ministry of Finance, total state spending has reached Rp 586.8 trillion, or 28 percent of the target in the state budget expenditures in 2016 amounted to Rp 2095.7 trillion.

Such big deficit of budget which is going contradict with the aggresive expenditure of goverment especially the infrastructure project, jokowi forces to increase the debt from overseas country willing to lend like china, usa. 
The option to cut of 50% budget as proposed as possible way proposed by finance minister is almost impossible looking the fact of massive infrastructure programs like railway trans papua and celebes, another toll way, water reservoir for agriculture will not be stagnant at the cause.

Though the rate is still lower than consesus, it's real the effect of jokowi's program to the eyes of people. BUt it's expected for the president to work on more well planned and precised .

AUTOMOTIVE SALES SLOWDOWN IN FIRST QUARTER

Entire automotive sales of nation shows slowdown trend in the first quarter 2016. This set impact on the slow down of motor vehicle slowdown portofolio since the end period of last year 2015.

Referring to the latest data of the Financial Services Authority (FSA), auto loans fell 3.18% to Rp 119.45 trillion as of March 2016 compared to the same period in 2015 tang which reached Rp 123.38 trillion. The decline in lending vehicles have occurred since last year.

For comparison, in December 2015, auto loans amounting to Rp 120.55 trillion. Furthermore, CLA during January, February and March 2016 respectively dropped to Rp 121.97 trillion, Rp 119.72 billion and Rp 119.45 trillion.

According to central asia bank(BCA) consumer director, the slowdown trend will be predicted to continue in the next period. Thus, BCA will not determine high growth of automotive credit ranging from 7-10% in the next period. 

In the first quarter of 2016, the Bank has channeled KKB Rp 32.68 trillion, up 13.8% compared to the same period in 2015. The growth of high credit flowing 80% to a new vehicle. KKB BCA spur growth through a single-digit lending deals with long tenor. Meanwhile another private sector bank

CIMB Niaga, agreed on the flat growth and recorded a decrease of 3.1% CLA to Rp 18.21 trillion in the first quarter of 2016. The portion of financing through its subsidiary contributed Rp 15.99 trillion.

On the contrary, one of the state owned bank, mandiri bank has different opinion. They still put a high target on automotive credit based on the high demand of the automotive in the next period. It is listed that mandiri chalked growth of 23.20% to Rp 18.34 trillion as of March 2016. Bank Mandiri credit to boost their business through two subsidiaries: Mandiri Utama Finance (MUF) for used vehicles and Mandiri Tunas Finance (MTF) for the new vehicle.

Through MUF and MTF, the government-owned bank credit work on cars and motorcycles as well.

In all, the slow down of automotive credit is the corollary of nation economy slowdown which is basically the global phenomenon. To push the growth, government push through the call of budget absorption to fasten the infrastructure and purchasing power of the consumers. Another policy of the increasing of income per capita of the factory workers result on the work termination and efficiency program of the factories. Thus the rate of jobless increases inaline with the detention of the factory to recruit the workers.

POSCO AND LOTTE TO INVEST IN INDONESIA AFTER JOKOWI'S VISITATION

Jokowi's visitation to south korea has a significant result of tying the country to series of business agreement. Lately, the main agenda of the incumbent president of ov

ersea's visitation is to bring more investor in the country as to boost his program exposed in nawacita program. 

Lately after his work visitation to south korea, 2 blue chip companies posco and lotto decide to invest in indonesia. Lotte who is popular with retail and supermarket business is also to expand the wings in petrochemicals. According to economy coordinator minister, darmin nasution, in president's visitation, the two companies agreed to expand in indonesia looking to the more secure investment circumstance guaranteed by jokowi. 

Meanwhile posco will be in commitment to develop steel business. In supporting government program of 35000mega watt electricity, posco will be collaborating with stated own company krakatau steel to produce steel while government in need of it to sustain electricity project.

CREDIT CARD BUSINESS ARE THREATENED BY GOVERNMENT POLICY

Many figures criticized on the policy of government through Peraturan Menteri Keuangan (PMK) Nomor 39/PMK.03/2016  which is assessed to disadvantage banks and consumer. 

Right after the release of government regulation, the increase of credit card closing multiplied up to even three times greater than before. This is almost like the temporal shut down of this bank products. 

In the report release, the central asia bank (BCA) admitted that the consumers are afraid much their identity get reported by the official state, department of taxation. Alluding to the preceding policy of the government, obliging the bank to record the id user, history of transaction, address and kind of transaction using cards including the limit of credit to analyze the potential taxpayer.

The fund and money minister, bambang brodjonegoro said the government policy is to expand the tax payer by analyzing the expenditures of the customers and the income profile enlisted in their tax annual report. 

However, indonesia bank authority ( BI) is still to scrutinize the effectivity of the government of how they attain the target through the identity report of credit card users. Is it significance the entire report for all consumers or only for limited users. 

This policy of government to boost the tax income of the state is basically to threaten the credit card business of the banks. Take in note that the users of credit card spread out widely and the sudden shock of the policy will influence the profit share. 

Minister of fund and monetary nevertheless that the decreasing number of credit card user is just temporary. He still believe that the facility to make easier the shopping needs through credit card than cash money making the priority of this kind of business still significant for the consumers. 

THE CLOSING OF CREDIT CARD MULTIPLIES DUE TO DIRECTORATE GENERAL OF TAXATION?

In the first quarter of 2016, all the banks released the phenomenon of credit card closing. The customers terminated the loans increased 3 times more than in the same period of last year.
it is assessed that the customers decision to close credit card due to the recent policy of obliging the banks to list the credit card user id for tax potential assessment.

According to head of consumers card bank of central asia,  santoso admitted the impact of goverment policy for the consumer to open and close the credit cards. They are much worried of being monitored by tax directorate thus the potential customers of credit card are much hesitate to use these bank products. Moreover, some don't know really the right use of credit cards, while other opt to decrease the limit of credit card to lower range.

In addition, there are also customers who put the brakes on credit card transaction volume."There was a decrease (volume transaction value) is almost 15 percent. The average transaction value of Rp 4.6 trillion to Rp 4.1 trillion to Rp 4.2 trillion per month," said Santoso.

The rule stated in PMK No. 39 / PMK.03 / 2016 on Breakdown of Data and Information Taxation and Procedures for Submission. This rule was signed by Finance Minister Bambang Brojonegoro on March 22, 2016.In that rule, 23 banks and credit card issuers are required to report the transaction data of credit card customers.

The minimal data reported are account number credit cards, ID and the name of the merchant, name and address of the owner of the card, National ID / passport number, taxpayer identification number (TIN), in the bill, the date of the transaction, the details and value of transactions, also credit limit.

MANDIRI BANK NON PERFORMING LOAN RAISES TO 2.89% WORSEN THAN LAST YEAR

In the first quarter, mandiri bank, stated owned corporation reported the increasing of non performing loan to 2.89% higher than the same period of last year which is 1.81%. 

According to  kartika wirjoadtmodjo, presdir of manidir bank, The net NPL recorded 0.85 percent from 0.53 percent a year ago. Meanwhile, consolidated gross NPL was recorded 3.18 percent in the first quarter of 2016 from 2.27 percent in the first quarter, 2015.

The increasing of NPL is much caused by mandiri syariah  bank which listed 6% of its npl making the aggregate NPL for mandiri bank in general is higher. 

To anticipate the high NPL, the bank prepares for better special asset management to handle well the hiking trend of NPL. Besides, early warning system and portofolio system are more focused to anticipate the customers problem of how they are capable to pay for the loan. There is a more serious approach based on region  to monitor disciplinely the loan system like wise the capability to manage the loan well. 

INDONESIA BANKS ARE UNDER DIFFICULT PERIOD IN 2016

Standard & poors and global rating funds released the result of survey estimating indonesia banks are slow to grow in 2016 period. This is one of difficult period much caused by the economy growth slowdown and bad credits. 

S & P stated that the non performing loan of indonesia banks will rise slightly to 3 to 4 percents from 2.9 percents in month of february. 

However, in asean region the banks still have resillience  against global economy shock in 2016. It is predicted that in asean region the npl will still rise slightly due to the slow of economy growth of the region. 

The monetary fund also in its formal release, estimated the decrease of economy growth globally from 3.4 percents to 3.2 percents. Facing the case, asean regions are cooperating to work on target 4.7 percents economy growth. As the consequence of low productivity of this economy slow down, the number of jobless will increase for certain periods.

Nevertheless, comparing to european economy, asian are better and the asean member countries expected to work on solutions. 

PT POS DIRECTOR TO PROSPECT 80 TRILLION PROFIT

PT Pos indonesia, the stated owned company is inspired by the incredible achievement of international logistic company who is capable to reach the 800 trillion profit in a year. 

The director of pt pos, gilarsi wahyu setijiono described the achievement of profit of pt pos which is still 5 trillion per year far from another international level company level like DHL. There must be a the changing approach of not only to serve the letter delivery but also to approach the logistic and e commerce business. Pt pos set the seemingly senseless target to hike up to 80 trillion per year, though it's only 10% from achievement of DHL.

According to gilarsi, so far pt pos is still engaging in letter delivery business which turns obsolete to day. PT pos must be involved more in cargo and e commerce business as to expand for bigger profit. Nonetheless, gillarsi said that the target will be attained in 5 years to come, estimately in year 2021. 

COFFEE EXHIBITION IN ATLANTA, 392 CONTAINERS OF INDONESIA COFFEE SOLD OUT

This year the world coffee association held the biggest coffee exhibition of the world in atlanta. This even was sponsored by specialty coffee association of america in georgia, joined by people of different profession all around the world like coffee farmers, coffee lovers and even the restaurant or cafe owners. 

There was a different view in indonesia pavilliun which was the main target of the visitors compared to the other countries. In this occasion also, indonesia offered different kinds of coffee from different region like manggarai coffee, ende flores coffee, java temanggung coffee and honey malabar coffee. 

The visitors are allowed to have coffee cupping starting from sniffing the smell of coffee and deciding for the kind to be bought. 

The attendance of indonesia in this biggest coffee exhibition aimed to bring the taste of its product to the international level. It got positive response through the booming visitors to pavilliun. This signified the more priority and quality of indonesia coffee is better than the other countries. 

The entire transaction of coffee during this exhibition was $35 million for 392 container distribution. Nus nuzhulia ishak, the representative of trade ministry pointed out the objective of this even to promote and establish the business network of indonesia and other countries. It's expected that indonesia coffee will be popular in international level in aline with the nomination of the country as the fourth producen of coffee of the world. 

This year indonesia is appointed as the SCAA portrait country. Some coffee lovers appreciated much the unique taste of indonesia coffee. One of the coffee cafe owner shared that;" indonesia coffee is very unique and unfound in other place. He speculated to sell the product in his coffee as he won the coffee auction in remarkable indonesian coffee pavilliun. 

BAKRIE'S COMPANY MADE RP 148 BILLION PROFIT IN THE FIRST QUARTER 2016

PT. bakrie sumatera plantations tbk, subdsidiary of bakrie group made a profit report  during the first quarter 2016. This company engages in oil palm released the report of Rp 148 billion profit during the first quarter of which in the previous year the same period of 2015, this bakrie subsidiary lost around Rp 88 billion. 

Though its faces the challenge of unstable price trends and the drastic global climate changing, the company has to extra work hard to revitalize the plantation and production facility. The global trend of crude palm oil (CPO) indicates the low trend meanwhile the policy of $50 per ton charge for the palm oil and rubber on the account of global warming, el nino and to push the biodiesel  program forces the company to adjust and yet listed the sale figures of Rp 334 billion in the first quarter.

According to the public relation officer of Bakrie company, andi w setianto, the greatest challenge of first quarter is the global low price trend of rubber and palm oil likewise the uncertain el nino period makes it's difficult to acquire sufficient water for the plantation. To maintain the sales quota, the company bought from the farmers who do not have the factory. 

During the first quarter 2016, the trend of price raise from $530 in january to $630 in march. Further more the program of government to boost biodiesel program prompting to make discount and increasing the domestic demand for the palm oil since the first quarter. The policy to charge $50 per ton for the CPO minimize the profit rate of the export. On the other hand, it indicates the good sign of domestic market of rubber and oil palm. 

Andi said, the price trend of will be increasing up to the third quarter likewise the production of the palm oil and rubber will be in culmination at the third quarter. The first quater of 2016 in which the PT. bakrie sumatera plantations made profit of Rp 148 is in the lowest production cycle. 

THE MOST INFLUENTIAL GROUP OF BANKS, STATE OWNED BANKS ARE UNDER THE PROBLEM OF STAGNANT CREDIT AND LOW PROFIT

State owned bank group, the most influential bank of the country faces the two great problems during the first quartal of 2016. The state owned banks group are the most influential ones in term of investments through which they own 40% from total of investment. At the end of 2015, four stated owned banks which are mandiri, bni, bri and btn owned 2445,227  trillion rupiahs from total investment of bank industry.

Since the state owned banks are the most influential, they also influence the other bank industry of national. Its performance determines the entire performance of banks of nationwide, thus it is central since it's the market leader.

In general, the performance of state-owned banks during the first quarter of 2016 was weaker as the continued slowdown in economic growth in Indonesia.

The slowdown in the domestic economy can not be separated from the global economic recovery is still weak. Especially the europe still faces turmoil within their economy, japan is still sinking and USA who is central in world economy is still seeking to resolve to solidity. Meanwhile though,china as the new power of asia economy leads to a stable country but still has high downside risk.

In the state, acceleration of capital expenditures and goods related to the central government's infrastructure development has not been able to boost economic growth. In previous months before the plan of economy released by president jokowi, rupiah ever fell down to its lowest rate up to rp 15000 per dollar, 

Based on the report of the Central Statistics Agency (BPS), Indonesia's economic growth during the first quarter of 2016 only 4.92 percent, down from the fourth quarter of 2015 by 5.04 percent.

Due to the sluggish real sector, lending, including by state-owned banks also weakened.

Credit growth BRI, BNI and BTN per end of March 2016 compared to the end of 2015 in a row just 0.48 percent, 0.19 percent and 2.87 percent.

Comparison using the position of the end of 2015 because you want to capture only state-owned bank's performance during the first quarter of 2016.

Bank Mandiri not to publish financial statements in March 2016. Bank Mandiri Reports are available only until February 2016.

Nonperforming loans surged

Amid a slowdown in the pace of loans, NPLs (non-performing loans / NPL) state-owned banks actually jumped. Many debtors in the mining sector collapsed so it could no longer pay its debts to the banks, including state-owned banks.

The mining sector is the sector most affected by the global economic downturn and the fall in oil prices and coal. Figures NPL Bank BRI rose from 2.02 percent at the end of 2015 to 2.22 percent by the end of March 2016. Figures BNI NPLs rose from 2.7 percent to 2.8 percent.

Among the state-owned bank, Bank BTN NPL is the highest since increased from 3.42 percent to 3.59 percent.

In 2015, BTN actually able to lower the NPL of 4.78 percent at the end of the first quarter of 2015 to 3.42 percent at the end of 2015.However, during the first quarter of 2016, NPL BTN back up.

As a result of a surge in NPLs, banks must set aside reserves SOE course, be funded by the profits. In other words, the increase in NPLs will erode bank profits.

The slow pace of loan portfolio also potentially reduce the bank's revenues and profits. Thus, during the first quarter of 2016, profit of state-owned banks under pressure due to slow lending and a surge in NPLs.

On the other hand, state-owned banks certainly do not want profits plummeted. Therefore, profit is the main parameter used to assess the success shareholder management. Shareholders only want to see the dividends they receive continues to increase every year.

Credit should go down, NPLs may rise, but profits should continue to grow, so the law. If profits plummeted, shareholders may replace bank management. Then, how to overcome the bank's management complicated situation like this? One strategy employed is playing a lending rates and deposit rates.

Because it can not rely on the volume of lending, the bank raised the profit margin. How, by lowering deposit rates as soon as possible and lower the loan interest as late as possible.

As the economic downturn and low inflation, during the first quarter of 2016, Bank Indonesia imposed a loose monetary policy, which means interest rates are on a downward trend.

Based on data from the FSA, the average interest rates on term deposits 1 month fell 28 basis points (bp) from 7.60 percent at the end of December 2015 to 7.32 percent at the end of February 2016.

However, during the same period, the average interest rates on working capital loans only fell 6 bps from 12.46 percent to 12.40 percent.

With this strategy, the bank can maintain the net interest margin (net interest margin / NIM) remained stable.

Not all banks increase the interest margin. Some banks take other strategies for securing such profit encourage fee-based income or revenue services and services beyond the flower.

INDUSTRIAL SECTOR LEADS THE FIRST QUARTER OF INVESTMENT IN INDONESIA

Upon the release of economy evaluation in term of investment,of the first quarter, industrial sector leads the majority of investment which contributes around 85.5 trillion from total investment in entire sectors. It is almost 58.6% from the total investment for the first quarter of 2016. This means half of total investment falls to industrial sector which shows great opportunity for the investors. 

On wednesday, may 4th, 2016 head of the Investment Coordinating Board (BKPM) Franky Sibarani point out that some sectors of industry that are in the top list are labor intensive sectors. "One is the food industry that accounts for realization of investment of Rp 15.4 trillion, equivalent to 10.5% to the industrial investment. 

Another 5 sectors that are in top list of industrial other than food industry is  the paper industry paper products and printing with an investment of Rp 27.5 trillion, equivalent to 18.7%, basic chemical industry, chemical and pharmaceutical goods amounting to Rp 19 trillion (13 %), transport equipment and other transportation Rp 12.2 trillion (8.3%) and basic metal industries, metal and electronic goods amounting to Rp 11.8 trillion (8.1%)

What shows as an incredible hint then is the majority of investment from top 5 list industrial sector coming from foreign investment which is recorded to reach 4.8 billion dollar or equivalent to 11.8 trillion rupiahs or 8.1% from total industrial sector investment. On the contrary domestic investors has to push through to increase the scope of investment of which only contributing 21% from total investment of five industrial sector or 18.6 trillion rupiahs. 

The realization of these investments breaks the  records investment realization in country, consisting of domestic investment  amounting to Rp 50.4 trillion, up 18.6% from Rp 42.5 trillion in the same period in  previous year 2015, and investment foreign  amounting to Rp 96.1 trillion, up 17.1% from Rp 82.1 trillion in the same period in 2015.

Responding to this significant statistic, government seeks to support the realm of investment for better circumstance.  the government is also in  efforts to encourage the industrial sector mainly included in the priority sectors such as labor-intensive industries, export-oriented industries, import substitution industry and mineral downstream industries will continue to be pursued.