Indonesians' Behavior and Big Digital Business Prospect

Digital business inevitably brings a promising future business prospect. It continues to be the world trend business following the progress of technology.

According to Google research in collaboration with australia TNS, around 50% smartphone users in indonesia using the gadget for social media, chatting and googling. This research leverages the opportunity of e-commerce as the future paramount prototype of new business. 

Recently, the businessman has taken this as great opportunity like manifold online purchase sites such as OLX, tokopedia, bhineka.com, mataharimal.com and also the use of transportation access through smartphone like gojek, uber, and grab. All these start ups acquire positive responses through high participation of customers to the new mode of business. 

The government on the other hand call for the large improvement of this e-commerce set up. Through the communication ministry, the businessmen engaged are expected to make the smart approach to extend massive invention of the mobile application for the business sake. The government is quite optimistic toward the target of e-commerce that is predicted to dominate the business of the country. It provides easiness for the consumers and bringing the big profit prospect for the businessmen.

IDEX Up Trend to Day, due to Positive Global and Domestic Sentiment, China brings no Impact

The trend of Indonesia Stock Exchange to day shows up trend. This is much influenced by global and domestic positive sentiment. USA exchange to day closed higher and european economy indicates the convalescent after the brexit of England to dispatch from euro. The Europe stock exchanges was closed high 3.1% after brexit. 

The oil price stock exchange also significantly closed high 4.1% after the USA announced the less oil stock for 2 consecutive weeks. This brings significant increasing toward global stock exchange including indonesia IDEX. 

Meanwhile, this morning Asian stocks opened higher pengutan about 1.0% as global exchanges and easing the impact of Brexit.
JCI is expected to continue strengthening, driven by the increase in US and European exchanges. As well as the optimism of the Tax Amnesty also be a positive sentiment for JCI and the rupiah.

The predictable crisis of china nevertheless doesn't influence IDEX. The movement of Chinese stocks tracked lower in early trading today, Thursday (06/30/2016), amid reports away gap between China and the company's profit forecast by analysts.The Shanghai Composite Index fell 0.23% or 6.85

points to 2924.74 at 10.21 pm, after opening edged down 0.112 points at 2931.48 position.

Companies in the Shanghai Composite Index reported earnings per share over the past year by 33% below the predictions of analysts 12 months ago, according to Bloomberg data.That difference, which this month has been widened to the most since 2009, far beyond the differences predictions and actual earnings reports in the US, and is twice more than that experienced by Chinese companies in Hong Kong."Profit issuers are changing rapidly and even the issuer itself was not able to predict correctly," said Li Daxiao, head of research at Yingda Securities Co., as reported by Bloomberg. "If the forecast of analysts slightly deviates from what the companies actually report, it is normal and understandable. We also need more time to judge whether an analyst is accurate."Of the 1,146 stocks listed on the Shanghai Composite Index, 301 of them rose, 710 fell, while 135 shares stagnant in early trading today.Greenland stock Holdings Corp. Ltd. plummeted 3.78%, followed by China Communications Construction Co. Ltd. which dropped 3.49%, China Construction Bank Corp. which fell 5.39%, and China Railway Group Ltd. which slumped 1.56%.Meanwhile, the CSI 300 index movement in Shenzen containing blue chip stocks this morning turned down 0.07% or 2.26 points to 3149.13, after opening edged up 0.05% or 1.44 points at 3,152 , 83

Brexit Sentiment will Impose Temporal Effect on Indonesia Stock Index

The tempest of brexit issue of which UK plan to exit from EU will signal the impact on world economy. After the win of majority votes more than 505 to day, UK is clearly on its new chapter to leave the UK. According to Conservative party of UK who propose the resignation of the country from EU, the decision is in need since in general terms EU basically gives no advantages to UK. Though the currency used is still pound sterling, the general commitment of EU countries bringing bad impact on UK. Conservatives pointed out to day on the rule of free visa for EU country members thus the workers of EU countries can easily enter the country which is fundamentally ruining the economy system of the UK. 

The ultimate decision to get out of EU results on the call of prime minister David Cameron to leave. This imposes the big impact on the global economy fluctuation. However the brexit sentiment in indonesia will not affect for long. According to some analysts though this has been placing the anxiety for global economy, this will just be temporary in the country. 

The main reason is basically the stability of rupiahs for months. beside, the country has still sufficient foreign exchange reserves and the inflation rate that is still under control around more or less 4 percent. According to IDEX director, though brexit causes unrest, this won't last longer. This is ordinary phenomenon due to certain policy of powerful countries like europe. 

Meanwhile, Vice President of Research and Analysis Valbury Asia Securities, Nico Omer Jonckheere suggests that investors are expected to remain aware of the results of the referendum if it is not in accordance with market expectations. In the poll, the number of English supporters in the EU survive superior sound propose out. "The referendum on Britain's future in the EU trading group will be a driving factor in the market where investors await the outcome anxiously hoping," he said.

Separately, Finance Minister, Bambang Brodjonegoro declared global sentiment over the issue "Brexit" gone downhill. "Brexit global sentiment has decreased, decreased anxiety. For Indonesia also I see it already subsided. Therefore, it is actually only the financial turmoil alone, transient was that 'Brexit' happened, "he said.

Finance Minister assess the issue of "Brexit" more to the psychological problems of the UK only. "Over to psychological problems. Europe without Britain was odd, does not reflect the actual euro. While Britain does not use the euro as their expiry pounds, "said Bambang.

Pertamina is to Invest $100 b for Foreign Oil and Gas Stock

Indonesian state-owned oil and gas company Pertamina said it is prepared to invest up to $100 billion to reach the 943,000 barrel per day (bpd) target by 2030. It is currently in talks with several mine operators, both local and foreign, for acquisition opportunities. Pertamina director Syamsu Alam said the company is eyeing blocks with production capacity above 35,000 bpd and at least 50 million barrels of reserves. In the next few days, Pertamina will start negotiations with Iran on two concessions, each with three to four billion barrels of estimated reserves. “We could buy the assets directly or purchase the shares from the operators. 

Pertamina as the largest oil company of the state continues to expand its wings through the negotiation with other country like rusia, iran, japan. So far,indonesia has owned assets in malaysia, algeria and iraq. 

Meanwhile the government under the cabinet of work of jokowi widodo pushed the company to take advantage of domestic resources like block masela and mahakam. Block masela itself is one of the most strategic oil well projected to be able lasting for next 20 years. 

It is estimated to have 10.73 trillion cubic feet in reserves, a larger figure than the Mahakam gas block. Gas production from Masela, which is located in the Arafura Sea, is projected to be able to last for more than 20 years. The block is 65 per cent owned by Japan’s Inpex Corp and 35 per cent by Royal Dutch Shell.

Government calls for pertamina to take the share of 20% from block masela that is basically operated by two foreign companies mentioned. Pertamina itself continued to grow especially after the decision of BUMN minister to merge the National Gas Company (PGN) with it. Through this the sector gas as another major business of pertamina is predictably to grow fast. Meanwhile in oil sector pertamina aims to build the grassroot refineries which is totally around $10b to $15b with the capacity of 300.000 bpd each.  

Late Awareness of AXA Group to Release Asset in Tobacco Industry

AXA group which is known as the large insurance industry made a surprising decision. This big world class insurance company decided to release its all asset in tobacco industry for moral reason. This seems to be a late awareness of AXA opting to withdraw its obligation estimately 200 billion euro. 

AXA said that the company realized to support the campaign of health and withdrawing its obligation was just moral reason. It is just  a paradox that this company recognized as big insurance company contrarily engaging in investment for tobacco industry. On the other hand it campaigns for the health yet precisely it ruins indirectly the health itself by supporting tobacco indsutry. 

We strongly believe that insurance companies play a positive role in people's lives, and the insurance company is part of the solution to prevent health risks in order to protect customers, "said Deputy CEO of AXA Thomas Buberl in an official statement on Thursday (23/06/2016).

According Buberl, departing from that reason, it becomes absurd if it continues to support investment in the tobacco industry. By releasing the tobacco assets, we realize our contribution to support the efforts of governments around the world.

"This decision is not favorable for us, but the reason to go public is very obvious, the impact caused by tobacco is very tragic and its economic impact is also great.

As a major investor and leader in the world of health insurance, AXA Group wants to be part of the solution, and our expectations of other actors in the industry is doing the same thing, "said Buberl.

AXA Group's data show, the long-term non-communicable diseases (NCDs), including cancer, heart disease, and chronic respiratory disease, has risen sharply and is currently responsible for 68 percent of deaths worldwide Jasus.

For cancer alone, unhealthy lifestyle contribute as much as nearly 50 percent of cases of malaria.

"In line with the increasing NCD cases, the role of a health insurance company AXA has changed, prevention becomes a very important thing, in tune with the increasing use of technology," said Buberl.

Clear Stance Over Natuna, Jokowi Won't Repeat The Mistake of Ligitan and Sipadan

To day president Jokowi Widodo visited natuna island accompanied by coordinating minister of law, politic and human rights, luhut pandjaitan, foreign minister retno and presidential staff. The main agenda of Jokowi is to observe the isle after the friday clash of which china flagged vessel was bombed over the illegal fishing in exclusive economic zone claimed by Indonesia. 

Following the dispute over the isle, jokowi asserted the sovereignty of the country in economic exclusive zone responding to the accusation of china overlapping the sea territory in natuna. China protested the crackdown of its vessel and the fishermen reported to be injured by indonesia navy. Meanwhile jakarta claimed that no one was injured during the class and the country is in right stance to defend its territory from illegal act of fishing in its sea territory. The cabinet secretary pramono anung asserted that the sovereignty of indonesia in natuna is final. 

China on the other hand not considering their vessel to violate indonesia territory claiming their fishermen were in the china territory. They protested the crackdown of their vessel. According to report from USA senior senator, the fleet of warships accompanied vessel of fishing boat. It is likely a jerk of china over another country and claiming absolute  power against neighbor countries in south china sea. While china who engaged in clash many times in natuna with indonesia declared its right to fish in its traditional fishing ground. 

Maritime Affairs and Fisheries Minister Susi Pudjiastuti said the international community did not recognize the so-called '€œtraditional fishing ground'€ the Chinese government had referred to.

'€œIt [the traditional fishing ground] is not recognized by the UNCLOS; the Chinese government statement is baseless,'€ Susi said, adding that the world only recognized so-called '€˜traditional fishing rights'€™. Malaysia was the only country Indonesia had signed a traditional fishing rights agreement with, she further emphasized.

The incident occurred Saturday when Indonesian authorities found Kwang Fey 10078 engaged in illegal fishing on Natuna waters, firing a warning shot after the vessel attempted to flee to the South China Sea.

The Indonesian sea patrol managed to catch the boat and detain its eight crew members. The poachers were also found to have used trawls, which are considered illegal in Indonesia.

As the Chinese vessel was being towed to Natuna Island, an armed Chinese coast guard ship rammed the fishing boat, shut down its engine and pulled it into international waters

What is Agenda of Jokowi to Natuna after Clash of Friday Polemy With China

President Joko Widodo today is scheduled to fly to Natuna, Riau Islands to review the Natuna waters. The President is scheduled to hold a meeting in one of its warships with members of the Cabinet Works.

President Jokowi will fly at 08.00 pm from the Halim Perdanakusuma Air Force Base, Jakarta, Thursday (06/23/2016). Jokowi President will be accompanied by TNI chief Gen. Gatot Nurmantyo and 3 chief of staff of the military.

Legal and Security Affairs will be present also Luhut Binsar, Pandjaitan, Retno Marsudi Foreign Minister and several other Cabinet members . President Jokowi will land at the Air Force Base Ranai, Natuna regency.


From Ranai, President Jokowi and his entourage are scheduled to climb KRI Imam Bonjol 383 then sailed to Natuna. This warship is a ship that captures Chinese vessels allegedly fishing in Natuna.

At KRI Imam Bonjol was President Jokowi and Labour Cabinet members will hold a closed meeting to discuss the acceleration of development in Natuna. After that Jokowi back to Jakarta late in the evening and Iftar at the State Palace.

"Yes, we want to see Natuna. Keep it later once we see a meeting, then we know what we want to say," said Menko Pohukam Luhut Pandjaitan at the Presidential Office, Jakarta, Wednesday (22/6) yesterday.

While Menseskab Pramono Agung said the visit of President Jokowi to Natuna to insist on the sovereignty of Indonesia in the Natuna position.

"Natuna is Homeland, it is final. So thus as a head of government and head of state, the President wants to make sure that the Natuna is part of the sovereignty of Indonesia," said Pramono.

To note Natuna is a district that goes Riau Islands province (Riau). When viewed on a map, the position Kepri actually present in the waters away from Sumatra. Natuna is the northernmost island in the strait Karimata.

In the north, Natuna bordering Vietnam and Cambodia, to the south by the South Sumatra and Jambi, in the western part of Singapore, Malaysia, Riau and in the east and East Malaysia and West Kalimantan.

Natuna is located on international shipping lanes Hongkong, Japan, Korea and Taiwan. This district is famous for producing oil and gas. Natuna oil reserves estimated at 1,400,386,470 barrels, while natural gas 112 356 680 000 barrels.

In the waters of Natuna it happened the shooting incident against the Chinese fishing boats suspected of illegal fishing activities in the Exclusive Economic Zone (EEZ). The arrest was led by Koarmabar

Ex Teman Ahok's Volunteer Testified the Fraud onver KTP's Collection

Ex teman ahok's vounteer testified the fraud over ktp's collection to boost indendent run of the 

incumbent governor in 2017. Through press conference, ex teman ahok clarified the fraud of his team during ktp collection. He said that all the member of teman ahok's in charge are actually hired Rp 500.000 after reaching t

he target of 140 ktps. Paulus dominggo ex teman ahok further said that they 

also incentified the people to willingly render their ktp for ahok's run. Worsely, teman aho also resubmit the same ktp many times to reach the target. 

Teman ahok nevertheless claimed that the issue was much politisized by certain people. This is beacause of the fear of political vaccum of power through the birth of people's initiation who basically lose their trust to political parties. Political parties are identical to corruption. People never see them as the hero of the people, they are more concerned on their party's interest rather than public interest. 

Teman ahok accussed the certain organization behind the testimony of ex teman ahok, paulus dominggo. There are particular mass organization and certain politicians who take advantage from it in order to ruin the effort of teman ahok to boost governor hok's re election in 2017. Along the hard effort of teman ahok to collect ktp, they have made enemies along they way including allegation of getting the money of 30 million rupiahs from agung podomoro land company. The company who won the tender for norht jakarta bay reclamation previously pointed out by junimart girsang to send the money for teman ahok. 

Teman ahok however in their official site defered all the allegations from their ex member. They clarified that all the operational fund for collectiong ktp are gained from mechandise sold and donations from member of the group. The ktp gathered were gained from lower income citizens. They also incentified the member of teman in charge to reach remote settlement to push the valor of member gathering ktp. 

In fact, Teman Ahok found that some groups of the KTP collectors, like the people who came forward with accusations against the group this morning, committed various types of fraud while collecting KTPs. As such, Teman Ahok said they have identified the problematic collectors, cut off working ties with them, and stressed that the KTPs they gathered were not included in Teman Ahok’s final KTP count.

Garuda Indonesi Airways To Expand the Flight in USA

Garuda Indonesia Airways after dodged by its bad reputation of poor service and safety has turned out as the number one choice of the flight  in the country. After series of success in domestic flight and some international routes, Garuda is to expand its wings in USA exactly the route flight to newyork and los angeles. 

Garuda president director M arif wibowo is quite optimistic that the route to USA is included in the plan of the company for five years. Arif foresees the business opportunity through the data that almost 400.000 passenger per year from jakarta to new york and los angeles. 

What lies as a little hindrance is the permit from USA federal Aviation Administration to audit the expediency of garuda in term of safety and services. Garuda has to pass the audit in order to receive the permit for direct flight to that world number one country. 

Garuda expected the audit will be released on july thus next 2017, the route to LA and New York will be started. 

All of the documents (for the audit) have been accepted and God willing, this July, we will get the good news as a Ramadan holiday gift," said Mohammad Alwi, the director of Airworthiness and Aircraft Operations at the Transportation Ministry.

CHINA STONGLY PROTESTED OVER THE FRIDAY'S CLASH OF ITS FLAGGED VESSEL NEAR NATUNA ISLAND

China raised a stong protest against indonesia after the friday's clash of its vessel near natuna island. China claimed that one of its fishermen get injured by the alarmed shot of indonesian navy last 

friday. It asserted that china never overlapped the territory of Indonesia and claiming their fishermen 

were still in their territory which raised 3000 kilometers from its mainland. 

South china sea has been the polemy of china and its neighbor countires like philippines. However the chinese foreign ministry spokes person denied the fact if china overlapping indonesian territory. Hua chunying said that chinese fishermen were absolutely in china traditional sea ground. However, she didn't clarify the statement if the area is under the sovereignty of Indonesia. 

Meanwhile, Indonesia through fisheries and maritime affairs minister, susi pudjiastuti said that the 

country is serious to crack down any act of illegal fishing in its territory. She added there is no country agree on illegal fishing. Indonesia thus is not to tolerate including the china flagged vessel 

caught in natuna near west borneo. On the other hand, Jokowi indonesian president met luhut pandjaitan ,the maritime coordinator minister to defend the sovereinty of the country, the land and territory from the threat of other country. It is a mandate since the independence day and has to be committed to it. 

But president ordered not to ruin the good relationship between indonesia-china.  

For the information, it has been the three times, china flagged vessels were caught by indonesian navy in natuna. 

Indonesia's navy said it intercepted 12 foreign vessels illegally fishing which fled as their warships 

approached.

Navy vessels pursued and fired several warning shots, until eventually a Chinese-flagged ship was 

stopped and boarded, it said. In March Chinese coastguards rammed a boat detained near the Natunas and helped it escape as the 

Indonesians towed the vessel to shore.

Last month, the Indonesian navy opened fire on a Chinese trawler near the islands and seized the vessel. Beijing said it protested the move.China asserts authority over almost all the South China Sea, basing its claim on historical documents, despite partial counter-claims from several Southeast Asian nations.

The polemy of south china sea will bring futher conflict between the neighbor countries. Eventhough china help much indonesia through loan support of infrastucture, the polemy of illegal fishng will test the bilateral of two countries looking to the fact of china's assertiveness to claim the majority of south china sea as its sovereignty. China seems to be arbitrary by not heeding to the other countries sovereignty especially not to admit the fault of illegal fishing in natuna island. This will ruin the situation moreover the neighbor countries place the coast guards and navy just like philippines and indonesia. 

MNC IS AMBITIOUS TO BUILD THE THEME PARK LARGER THEN SINGAPORE'S UNIVERSAL STUDIO

MNC group under its founder, harry tanoe  sudibjo is serious to invest around one million dollar to build theme park in lido, bogor west java. 
Theme park that is going to build around 3000 hectares  and predicted to be larger than universal studio in singapore and disney land in hongkong. It will be consisted of resrot, water park, hotel. gold and even industrial area. 

Harry tanoe believed that theme park will be the icon of indonesia. This will withdraw the interest of forein visitors since it's planned to be better than two famous ones like universal studio and disney land in hongkong. 

MNC Land in the development of an integrated tourist area of the holding co-operation with Chinese firms that Metallurgical Corporation of China (MCC) Group. MNC Land appoint MCC Group as the main contractor in the construction of the Theme Park Resort's first world-class integrated in Indonesia.

MNC Land selected to run the design process and get up in the development of Theme Park Resort because judged as one of the developers are quite experienced in China. MNC Land also received a letter of interest from the Chinese Export and Credit Insurance Corporation (SINOSURE). The Award marks the beginning of the process of project financing from China. "It demonstrates our commitment to serving the people of Indonesia with the best from the world of entertainment," said Hary Tanoe.

Theme Park Resort will present two hotels and entertainment centers. This is part of MNC Land plans to develop lifestyle and entertainment center.

World Bank Projected The Indonesia Economy Growth 5.1 in 2016

It is almost a semester already behind manifold of economy problems with the country, president has made massive reformation in terms of infrastructure, bureucracy,  a good climate of investment. After the disappointment of incapable to reach the target during the first quarter, the world bank precisely brings optimism that Indonesia can reach the growth of 5.1 percent in 2016. 

According to World Bank Country Director in Indonesia,  Chaves said, Indonesia was better than Brazil and Mexico.

"The recovery is not due to natural resources, but policy reform," said Rodrigo in a World Bank report, Indonesia Economic Quarterly June, in the Auditorium of the Ministry of Trade, Jakarta, Monday (06/20/2016).

Private consumption is expected to rise slightly due to moderate inflation, relatively stable rupiah, lower energy prices, the estimated increase in taxable income and salaries of all 14 for civil servants.

The World Bank estimates that inflation in 2016 is quite low at 3.9 percent. However, Rodrigo government warned of the potential price fluctuation, mainly of food commodities, especially in the months of festivals.

Government expenditures are projected to increase in the following three quarters-I in line with historical trends.

World Bank calculations show that 90 per cent of the Budget 2016 investment target can be achieved with the revenue projections were even lower than the 2016 revised state budget.

Jokowi's cabinet has been performing of reformation in policy, infrastructure, commodity,agriculture. For the first time jokowi opened the rail way trans celebes and toll trans papua, toll trans sumatra that have never been done by presidents before. Though the government was criticized for over expenditure while not supported by the revenue, jokowi still boost his minister not to let the massive infrastructure  stagnant. He is quite confident of long prospect that can be reaped by the massive infrastructure namely to make the systemic distribution of goods all over the country's regions. One of the campaign of government is to make the sea toll as the main resolution for equitable distribution so as to solve the different margin of goods' prices in regions and provinces like sumatra or west papua. 

The world bank sees the policy and reformation of jokowi as the main reason to boost the fast economy growth. Though encountered by little challenges like low commodity, it will not  be much obstacle to reach the 5.1 economy growth. On the other hand, The world bank advised the country to be more serious in sevices and manfucature sectors that are not much concerned for 10 years. This will be a right timing for indonesia to engage more in these two vital sectors that will be  beneficial for economy growth. 

Asian stocks rose in early trade on Monday as rising expectations for the UK remains in the EU

Asian stocks rose in early trade on Monday as rising expectations for the UK remains in the EU, which dampened sentiment and increasing global concern pound than other currencies.

The MSCI index of Asia Pacific stocks outside Japan rose 0.4 percent. While the Nikkei 225 index rose 1.5 percent, helped drop in the yen. Australian stocks rose 0.3 percent and South Korea's Kospi index rose 1 percent.

Three sites last British poll showed that the choice to remain in the EU increased.

The global market sentiment hit Brexit on June 23, then going along assassination campaign suspension on supporting British politicians remain in the EU, Jo Cox.

"To be honest, the murder of British politicians jo Cox became rhetoric on the campaign two opinions. But the market will remain between the two bergerakn this opinion and the opinion polls will continue," wrote ANZ.

The pound rose 1.4 percent to a level of 1.4573 US dollars per 1 GBP. While the safe-haven yen fell setekah achieve the increase for 22 months.

The dollar rose 0.5 percent to 104 650 yen. The euro rose 0.5 percent to a level of 1.1336 dollars per 1 euro.

Some Foreign Companies Fooled Indonesia to Steal Fish

Under the coordination of incumbent minister fisheries and maritime affairs, susi pudjiastuti Indonesia cracks down the foreign ships that are caught stealing the fish in its territory. It is acknowledged that the rigor of minister susi to drown the neighbor countries ships upon being caught of stealing still not to loosen the syndicate of fish stealing.

According to Dean of the Faculty of Human Ecology, Bogor Agricultural University (IPB), Arif Satria said, there is one special trick for foreign legal firms in illegal fishing in Indonesia. They are hiding behind the operating license processing industry.

"They use permit processing, but they used to steal fish here (Indonesia)," said Arif, discussion of 'State Oceanic but Imported Fish', at Gado-gado Boplo, Menteng, Central Jakarta, Saturday (18/06/2016)

Using the guise of doing business processing industry, said Arif, foreign companies that acquire various types of fish from the indonesian fishermen and smuggled abroad. Meanwhile the processing industry remain empty without any industrial activity. Therefore, the Government of Indonesia must anticipate these events because they escaped the attention of the government in smart trick.

The fisheries and maritime affairs minister on the other hand is still handling the case of fish stealing by neighbor countries flagged ships. As previously happened, the minister will be still on her stance to sink down the ships and bringing before the court for illegal acts against indonesia law. What lies as the problem then most of the ship crew are also indonesian being employed by foreign company to disguise the indonesia's control thus they can freely smuggling the fish without being noticed. 

Indonesia authority through the fisheries and maritime affairs ministry will not limbering the law enforcement and commitment to bomb all the allegedly caught ships and trial to crew. However, addressing the various mode marine crime of foreign countries within indonesian territory, the government has to look forward for anticipation including the tight monitoring toward the company which have the legal permit to operate as processing industries in the country.

Jokowi Postponed Cigarettes Ratification, a Positive Sentiment to Companies Stock

Cigarettes companies are nonetheless the big contributors to the country especially the tax that has simultaneously raised for them in three consecutive years. According to daewoo securities, since 2014 cigarettes companies reached 112.5 trillion rupiahs, 139 trillion rupiahs 2015 and predicted around 148.9 trillion rupiahs in 2016.

The ruling on issue of government postponing ratification gives positive sentiment to cigarettes companies stock. Previously, president committed to use local regulation for cigarettes and not to rely on international framework convention on tobacco control (FCTC).

Meanwhile, the postpone of ratification will raise the emitent's income and negatively influencing the purchasing power of smokers since the high price won't lessen the smoking habit of its users. 

It is acknowledged that government intended to look for alternative revenue from raising the cigarettes taxes. According to some economy watcher, this should not happen since cigarettes already give big revenue of taxes and under a well managed law control. However, the budget deficit spurs the government to still raise the taxes of tobacco.

From observation Bloomberg, Thursday, May 16, it appears the stock performance of four non observed moving issuers began to improve. Shares of PT Hanjaya Mandala Sampoerna Tbk (HMSP) rose 50 points, or 1.37 per cent to be at Rp3.720 per share. PT Bentoel International Investama Tbk (RMBA) gaining 4 points to reach 0.88 per cent to be at Rp460 per share.

The movement of the shares of PT Gudang Garam Tbk PT (GGRM) experienced a decline Rp725 or 1.13 percent to reach Rp63.625 per share. PT Wismilak Inti Makmur Tbk (WIIM) experienced a decline of two points, or 0.52 per cent to reach Rp386 per share.

Jokowi cut of more than 3000 Local Regulations to Boost Investment Sector

Being committed to his promise to ensure the easiness for investment in the country, president through his home affair minister, cahyo kumolo has declared the annihilation of around 3000 local regulations that are considered obstacles to the business and investment. 

Indonesian business association ( APINDO ) gladly welcome the decision of government for a good breakthrough in business and investment. Apindo admitted that local regulation so far have been hindrance for investment because of complicated bureaucracy and permits that have to be fulfilled by the investors. This is seen as the obstacle by Apindo likewise being affirmed by home affair minister. Thus as a new approach, Jokowi's government aims to only provide one permit for investor.

The government claimed that the eradication of local regulations are not against the law since by essence these local laws are contradicted to its prime law. Cahyo kumolo said that this is time for revolution to look forward for investment progress. There is no need for investor to prepare for unnecessary document of permitance.

According to regional economy autonomy watcher, endi jaweng, the main cause of these local regulation is the mindset of the mayors who aim only to achieve the additional income for their region neglecting the principle function to have social control and protection over environment and local business. Endi added that central government has to facilitate also the investment in region. So far there is no endeavor of central government as facilitator. 

Rupiah to Depreciate against Three Major Currencies during May 2016.

The Central Statistics Agency (BPS), the rupiah to depreciate against three major currencies during May 2016. All three currencies are the US dollar (USD), the yen, and the euro currency.
BPS in chief Suryamin said depreciation against the yen depreciation is highest. Only then followed the depreciation of the rupiah against the US dollar and the euro.

"The rupiah depreciated 3.31 percent against the yen in May 2016. At its low, the national average retail middle rate of rupiah against the yen occurred in the fourth week of May 2016, which reached Rp122,83 per yen," he said at BPS Headquarters, Jalan Dr Sutomo, Central Jakarta, Wednesday (15/06/2016).
Meanwhile, the rupiah depreciated 3.14 percent against the dollar in May 2016 to the lowest level national average retail middle rate of rupiah against the USD occurred in the fourth week of May 2016, which reached Rp13.571,96 per USD.
The rupiah's depreciation against the euro in May 2016 was 1.55 percent, the lowest level of the national average rupiah exchange rate against the euro amid retail occur in the fourth week of May 2016, which reached Rp15.153,11 per euro.

Meanwhile, according to the province, the lowest rate occurred in the middle of East Nusa Tenggara province which reached Rp13.691,67 per US dollar in the fourth week of May 2016, North Maluku Province reached Rp125,35 per Japanese yen in the fourth week of May 2016, and Banten which reached Rp15.309,00 per euro in the second week of May 2016.

Nevertheless, the rupiah managed to appreciate against the currencies Australian dollar in May. In this case the rupiah appreciated 3.13 percent against the Australian dollar in May 2016.
The highest level of the national average retail middle rate of rupiah against the Australian dollar occurred in the third week of May 2016, which reached Rp9.727,93 per Australian dollar. Meanwhile, according to the province, the highest level of the middle rate occurred in the province of North Borneo which reached Rp9.364,00 per Australian dollar in the second week of May 2016

Businessman Urges Government to Haste Raw Sugar Import

After the issue of raw sugar import, the businessman urge the government to haste 381.000 tons as signaled previously by the government. The businessman who are associated in food and beverage business association (GAPMI) postulated the urgency of raw sugar import to fulfill the refined sugar industrial needs.

Lack of sugar supply was claimed as the main reason since the failure of sugarcane farmer due to the unfriendly climate. This caused the harvest of sugarcane delayed to last march and april, meanwhile the demand of raw material sugar cane for refined industry is high. Though it was still under control due to the flat production number of industry, the lack of raw sugar disturb the industry too. 

The Food and beverage association called for the prudent plan for sugar stock to the government so as to maintain the production plan of refined sugar industry. The government should anticipate long before and not seemingly plump in case of climate factor like this year. This is important to keep the industry going on production on track. 

There are allegedly the conspiracy of importers causing the high price of sugar in the market. Vice Chairman of Market Merchants Association of Indonesia (LGAs) Ngadiran said that so far only allowed import of refined sugar for industrial use. However, he suspected the importers deliberately plays the price of sugar in order to obtain permission to import more. Ngadiran urged the commitment of government to stabilize the stock and price of sugar in the country. In case of lack of supply, there are suspected cases that worth to be investigated and fixed by the government including the possibility of import mafia especially for basic needs like sugar. 

Businessmen are Enthusiastic with Tax Amnesty

Tax amnesty that is going to rule out getting positive response from the businesmen. According to sofjan wanandi, chairman of vice president's team expert, businessmen interest toward tax amnesty raises due to the exchange of information among countries that make them difficult to conceal the access toward their business or money overseas. The government can easily access the investors who place their money in other countries. Sofjan said, this will boost the businesmen to repatriate their money to the country. 

Besides targeting the overseas investors, tax amnesty expects to reach domestics investors who have not report the tax obligations. According to sofjan, around Rp 500 trillion deposits have not fulfilled the tax obligation. THis will be the apt oppurtunity for them to pay in less deducted amount through tax amnesty policy. 

However, the government is expected to ensure the long term prospect of tax amnesty by providing conducive environment for the investors thus they will be assured to repatriate and invest their money. Otherwise, they won't stay long wihtout the safety guarantee of busines environment by the government. Besides, the government has to revise the tax regulation for better, because this is decisive on the part of investor to willing investing their money for long term in the country. 

CHINA IS UNDER CRISIS TURMOIL, INDONESIA WILL BE AFFECTED?

In the forum of bahana economic: the end game for china, chief economy banking policy, it's highly discussed that the panda country facing the turmoil crisis. The main reason of the crisis is the shadow banking in which the chinese can freely borrow the money by means of internet. What cause the great crisis is unwell management of shadow banking, government doesn't provide good management thus the finance sector in that country is out of control.

Currently, the debt over of that panda country is 250 percent above gross domestic product. On account of this over debt, china is mostly close to the great financial crisis turmoil. The crisis of china is surely affecting the other countries especially the south east asia's. The undisputable fact in term of economy, china is one of the most powerful country even juxtaposed with USA. The trade of China which pervades to the entire market especially in south east asia becomes the main factor how the economic issue of that country is decisive for the others. 

After the decision of china to devaluate its currency to overcome the crisis, it faces another problem of shadow banking by which the crisis is mostly the issue to soon devastate the country's economy. 

Indonesia is one of the business partner of china. It even lent the money to bolster government programs of infrastructure in Indonesia. This means the possibility of china's crisis will nevertheless influences Indonesia's economy. China is the main export destination of indonesia. This means export of the country will nonetheless becomes one of sector affected if china will soon be overlapped by financial crisis. 

The head of economy banking policy, yogi affandi stated that mostly export is the big sector influenced by china crisis. Meanwhile, finance sector will not much affected except USA will face the same issue. According to yogi, since the currency for international trade used by the country is dollar thus only USA crisis will only begets financial fall down to indonesia. 

The issue of china is to face crisis turmoil is upheaval discussed by international economy watcher. For instance Japan economy market in chief, jevin lai described that the panda country is already 30 percent to have economy down fall. 

AHOK IS FREE OF CORRUPTION ALLEGATION REGARDING SUMBER WARAS, KPK TO SUMMON BPK?

The Commission on corruption watch(KPK) to day set an end of speculation regarding ahok's corruption allegation regarding sumber waras hospital. The director in chief of KPK, agus rahardjo clarified that Ahok was clearly not to involve in corruption intention as proposed through BPK's audit of which the purchase of sumber waras land propertly causing the lose of 971 million rupiahs. 

People are eager to hear from KPK announcement regarding the case looking to the fact that many speculated if ahok will end in jail after the corruption indication found by KPK especially coming from Ahok's political rival. 

According to Agus rahardjo, it's expected that the case of sumber waras is clear and ahok is not involved in any act of corruption in the case, on the other hand, KPK will summon BPK to clarify regarding the indication they found in sumber waras purchase of which concluded causing Rp 971 million lose for the state. 

This ultimate report of the KPK is surely a big knock out for the political rivals of ahok. Looking to the fact that many really expect the end of this incumbent jakarta's governor career in this sumber waras case. Ahok who is invincible and protagonist in state's politics has been the envy of certain people who are disadvanteged  by series of Ahok's policies and programs. 

Furthermore,the ultimate statement of KPK will boost the popularity and trust of public to the governor for his second run in next 2017 election. Though Ahok 's program seem controversials but people clearly stand for him since he is truly leader of the people. His programs are pro public need and marginal class

RUPIAH TUMBLED DOWN WHEN POUNDSTERLING CONTINUES TO COLLAPSE

The rupiah rate against the US dollar (USD) in today's trading opened toppled, even back in translucent level Rp13.300 / USD, although at this weekend  rupiah is to leave those levels. The weakening of the rupiah is in line with the fall of the British currency, the pound.

The position of the rupiah against the USD based on data from Yahoo Finance opened at the level Rp13.348 / USD range Rp13.335-Rp13.350 / USD or worse than yesterday's closing weekend at the level Rp13.295 / USD and at 10:00 am moving to Rp13. 335 / USD.

Based on the reference rate Jakarta Interbank Spot Dollar Rate (Jisdor) BI, rupiah opened at the level Rp13.341 / USD. These positions are rapidly collapsed from previous positions at the level of Rp13.305 / USD.

According to data from Bloomberg, the rupiah was opened also improved in position Rp13.355 / USD this morning with a daily range Rp13.328-Rp13.366 / USD. This position shows the rupiah did not improve compared to yesterday's closing weekend at the level Rp13.294 / USD. And at 10:00 am moving to the level of Rp13.339 / USD.

Reported by Reuters on Monday (6/13/2016), the British Pound currency fell to its lowest level in eight weeks against the USD ahead of a referendum that could push the UK out of the EU. Meanwhile, the yen strengthened broadly after the mass shootings in the United States yesterday.

The pound fell 1.4% on Friday or the second biggest fall this year, and in early trading in Asia today back down 0.2% to a level of 1.4208.

"The referendum is getting closer and polls show a very tight race," said Shin Kadota, chief FX strategist at Barclays.

volatility in the sterling surged as market participants felt the need for protection against the fall of the currency. volatility pounds three months jumped to 17.2%, its highest level since early 2009.

Poll published at the weekend showed voters still divided over whether to end Britain's membership of the European Union. The pound also hit a one-month high against the euro, which rose to as high as 79.355.

While the yen surged to its highest level in three years against both currencies namely sterling and euro as investors sought refuge in the Japanese currency due to hit sentiment continued following the mass shootings in the United States yesterday.

The pound approached a three-year lows against the yen at 150.68 level, while the euro also fell to a nadir three-year high of 119.52. On the other hand, the USD lost 0.4% against the yen to 106.60.

While many market players think the Bank of Japan will keep policy on hold at its meeting on June 15 to 16, that perception could change if the USD fell below 18-month lows at 105.55 positions. Euro against the USD dipped to 1.12475, its lowest since June 3.

MONTH OF MAY, MANDIRI BANK CORPORATION CREDIT GROWS 8%

In the month of may,2016, Mandiri bank noted the growth of 8% in corporation sector credit from total porto folio of Rp 200 trillion. This is the positive hint of credit of the bank in the midst of economy slowdown and juxtaposed of credit problems that have overlapped the bank industries in the late periods. 

According to mandiri corporate director, royke timilaar, the achievement of 8% corporation credit is still below the target of 10%. However, royke is quite confident that the target will be achieved but mandiri bank so far is much concerned on corporation credit especially infrastructure and manufacture. This is because based on the fact the currently government under the program to establish massive infrastructure like toll roads, rail ways, water reservoir. Mandiri bank also foresees the opportunity in manufacture sector since many company already started to build their own factories. 

Royke also confirmed that mandiri bank also aim to expand the credit in property sector. But the stated owned bank has to wait the government to approve the LTV loan to value and mostly the tax amnesty that is the main breakthrough in economy term.  

SBY SAID: TAX AMNESTY IS A FRAGILE ASSUMPTION BUT HE PROPOSED NOT AN IMPRESSIVE CHOICE

SBY often criticized various programs of government since his era ended last 2014. The lately the sixth president pointed out on the tax amnesty policy as an absolute fragile assumption of jokowi's presidency. 

According to Susilo, it's not effective to increase the revenue by means of tax amnesty. Instead Jokowi and his cabinet should opt to cut of unnecessary budget and allocate to the potential sectors only like infrastructure, real sectors and many others. On the other hand, tax amnesty according to Susilo bambang yudhoyono is only advantegous to the tax evaders rather than raising the national revenue.

Need to know, the house of senate is to complete the regulation of tax amnesty meant to repatriate the potential investors who reeside abroad. By means of tax amnesty, it is expected for the investors to return back to the country and gaining more additional revenue estimatedly Rp 180 trillion. According to minister of finance, bambang brodjonegoro, from overseas target around Rp4000 trillion, 4% from that estimatedly gaining Rp 160 trillion meanwhile from domestic 2% from targeted Rp 1000 will earn Rp 20 trillion of additional revenue. In addition, finansce minister said that without the tax amnesty, government would cut off around 250 trillion rupiahs for national budget. This is much caused by low tax revenue which contributes the majority fund for national budget.  

Tax amnesty still becomes the main target of government for national revenue addition. Taking into consideration that jokowi must push through with it since they need more fund to bolster the massive program like infrastructure in entire regions. 

2 years in presidency jokowi has built rail train trans celebes and trans papua which are the first 

time in history. Besides, jokowi cabinet has build major toll ways of trans java, massive water 

reservoir for irrigation and money others. Though seems only speculative to earn from tax revenue, 

government included it in the list still. 

The ex sixth president, sby blamed that government should seek for other strategy to boost for 

revenue.According the cut off of budget in proportional amunt is feasible provided for unnecessary 

programs. However, the critic basically did not give impressive solution or simply a mere rhetoric. He doesn't propose significant strategy based on 2 consecutive periods of him as president. Meanwhile, the tax amnesty of jokowi is categorized as novel ardous breakthrough. Beside it is advantegous for short term. in long term, this will withdraw back the outside investors thus support more on the investment of the country. This approah of jokowi is considered as the courageous and smart approach. Furthermore, the neighbor country which has been target of indonesian investor to flee like singapore is in stagger upon the tax amnesty to apply in indonesia.

STOCK PRICE INDEX FELL 15.63 POINTS ON THIS MID FRIDAY

Increasing of  Stock Price Index (CSPI) in the opening exchanges this morning did not last for long. JCI on pause during this friday s
lumped at the level of 4861.15. Stock index fell 15.63 points, or down 0.32 percent. In fact, at the opening of trading this morning, Composite Index touched its highest level at 4887.58.

Based on data from RTI, the volume of stock trading until the break this afternoon reached 5.50 billion shares worth 2.20 trillion transactions.

A total of 106 stocks closed up, 137 shares closed down and 88 stocks closed fixed or unchanging.
Foreign net sell in all trade board was Rp 44.8 billion, with shares of interest for sale that HMSP, BBCA, GGRM, SMGR and LPKR.
JCI dragged lower due to profit taking various industry sectors, which were dragged down 2.19 percent.

In addition, seven other sectors also weakened, which helped push the index slid into the red zone.
While sectors closed higher at midday break is the infrastructure sector and the trade sector.