Dear all; The rosy stories told by the government are always one sided, such as released down bellow, or sometimes it was a half truth only --- a kind of disinformation.
Therefore there is no story on the rising of the number of poverty (50% higher then the previous year!) in our country from the government. So, who are the winner now? There are some minority only! While the others are losing all the time. This is a kind of "natural law" (sic!) in the world under the political economy of Neo-Liberal Capitalism (Global Economy). The gap is widening in all over the globe! Ikra.- ===== ECONOMY Govt. Upbeat on Growth Coordinating Minister for Economic Affairs Boediono says growth will be higher this year than the 5.6% in 2005 despite a downturn in the wake of two rounds of fuel price rises last year. Boediono said Friday (7/4/06) that the economy was still on target to achieve single-digit inflation and that growth would be in line with the revised forecast of 5.9%. "Personally, I think the 6% growth target is still achievable if we can maintain the current good economic, social, and political environment," Boediono said, according to The Jakarta Post. The economy in the first quarter grew by 4.8% year-on-year as consumption and investment remained slow, according to an estimate from Bank Indonesia. Some of the government's enthusiasm was based on lower-than-expected inflation for March, which brought year-on-year inflation to 15.74%, lower than analysts' estimates. The lower figure brought Bank Indonesia (BI) to tip a possible early fall in interest rates, with Governor Burhanuddin Abdullah saying rates may start to come down from their present level of 12.75% by May. Abdullah told reporters "BI sees recent positive developments continuing. Therefore, there is a possibility that rates could be gradually cut earlier than previously expected. It may be earlier by one month," Reuters reported him as saying. But, he noted, "the current BI rate needs to be maintained until macroeconomic stability is well under control, especially inflation expectations and pressures of the possible reversal of capital flows." The stock market hit new highs for three successive days, with the composite index ending the week at 1363.298. The market had already racked up the highest gains in Southeast Asia for the first quarter at 14%. The rupiah also strengthened, falling below 9,000 to the US dollar. Finance Minister Sri Mulyani Indrawati said the stronger rupiah was evidence that investors back the changes in the economy. "The sentiment, of course, is very strong in favor of us," she said in an interview with Bloomberg. "Investors also see the momentum of reform in Indonesia is picking up very progressively and I think they are making a very good gesture of endorsing the movement." She promised to keep a firm eye on the currency's movements. "It will have a lot of implications, not necessarily only positive, but it can also have certain complications on a number of other economic activities." Trade Minister Mari Pangestu said in New York she expected the new investment law to be in place by the end of the year, and the government was already making positive changes, including more lenient conditions for expatriate workers. Indicators: February 2006 Growth on year Total exports $7.35 bn 15.18% Non-oil & gas exports $5.72 bn 5.72% February 2006 (m-o-m) February 2006 (y-o-y) March 2006 (m-o-m) March 2006 (y-o-y) Inflation 0.58% 17.92% 0.03% 15.74% Full year 2005 1Q 2006 GDP growth 5.60% 4.8% January 2006 February 2006 Growth/loss Tourism arrivals 295,165 264,303 -10.46% Jan-Feb 2006 Jan-Feb 2005 Growth/loss 559,468 657,652 -14.93% Source: Central Agency of Statistics BUSINESS BRIEFS MACROECONOMY BI Keeps Policy Rate Unchanged Bank Indonesia (BI) kept its benchmark interest rate unchanged for a fourth straight month as inflation slowed, Bloomberg reported. BI Governor Burhanuddin Abdullah and his seven deputies maintained the rate used as a reference for bill sales at 12.75%, the central bank said on Wednesday (5/4/06). Abdullah however said the central bank might cut the rate as early as next month. Chief economist at Standard Chartered Plc Fauzi Ichsan believed BI might cut rates in July. "We believe the rate has peaked already," Ichsan said, adding that he expects the rate to fall to 11.25% by the end of the year. "Bank Indonesia will want to make sure that inflation is on a definite downtrend before they cut." Inflation last month dropped to its lowest since the government more than doubled fuel prices in October and could slow further as a 9.3% gain by the rupiah this year makes imports cheaper. Consumer prices rose 15.74% in March from a year ago after gaining 17.92% in February, amid declining food prices during the seasonal harvest, the Central Bureau of Statistics (BPS) said Monday (3/4/06). On-month inflation was 0.03% last month, compared to 0.58% the previous month. On-year core inflation -- which excludes prices that are controlled by the government, such as energy and food -- was 9.64% in March, down from 10.2% in February. BPS chairman Choiril Maksum said the March inflation result "was caused by the decreasing price of rice, as the harvest season has begun. If we can maintain the (same) level of inflation as in March, on-year inflation by the end of the year should be good." The central bank cut its inflation forecast for this year from 8% to 7%, Abdullah said, adding that BI expects inflation to drop to 6% next year and 5% in 2008. The World Bank said a stronger recovery in growth is likely to materialize in the second half of 2006 so long as the government can maintain a sound mix of expansionary fiscal policy and tight monetary policy through the first half. *************************************************************************** Berdikusi dg Santun & Elegan, dg Semangat Persahabatan. Menuju Indonesia yg Lebih Baik, in Commonality & Shared Destiny. http://groups.yahoo.com/group/ppiindia *************************************************************************** __________________________________________________________________________ Mohon Perhatian: 1. Harap tdk. memposting/reply yg menyinggung SARA (kecuali sbg otokritik) 2. Pesan yg akan direply harap dihapus, kecuali yg akan dikomentari. 3. Reading only, http://dear.to/ppi 4. Satu email perhari: [EMAIL PROTECTED] 5. No-email/web only: [EMAIL PROTECTED] 6. kembali menerima email: [EMAIL PROTECTED] Yahoo! 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