0 Easy Fed Softens Fiscal Policy Punch on Economy

The Federal Reserve’s aggressive easing of monetary policy is proving surprisingly effective at blunting the blow to the US economy from tighter fiscal policy, according to economists who have been scrambling to raise their growth forecasts. Economists had feared higher taxes and deep government spending cuts would stunt growth in the first quarter, but a string of strong economic data has so far proven them wrong. And they mostly blame the Fed. “Monetary policy is beginning to gain some traction here,” said Tom Higgins, global macro strategist at Standish Mellon Asset Management in Boston. According to Higgins, if it were not for the monetary stimulus, the economy would probably be facing growth of a 1 percent annual rate or less. As it is, he expects growth to come in at a 2.5 percent pace in the first quarter. The US central bank has held overnight interest rates near zero since December 2008 and has pumped about $2.5 trillion into the economy by purchasing Treasury debt and mortgage-backed bonds in a bid to foster faster growth and lower unemployment. On Wednesday, it recommitted to plans to buy $85 billion worth of bonds each month and said it would keep buying assets until it sees a significant improvement in the labor market. Those actions have helped put the economy in better shape to deal with the end of a 2 percent payroll tax cut, higher tax rates for wealthy Americans and $85 billion in across-the-board government spending cuts known as the “sequester.” The easy money stance has given a boost to interest rate sensitive sectors of the economy, such as autos and housing. The commitment to easy policy also appears to be lifting business confidence, which in turn is underpinning job growth and the stock market. Nonfarm payrolls increased 236,000 in February and the jobless rate fell to a four-year low of 7.7 percent. “The message from the data is that in the battle between fiscal drag and monetary stimulus, the Fed is winning,” said Jim O’Sullivan, chief US economist at High Frequency Economics in Valhalla, New York. Stunned by a surprisingly strong report on retail sales last week, most economists rushed to raise first-quarter growth estimates. JPMorgan pushed theirs up by an eye-catching eight-tenths of a percentage point to 2.3 percent, while Goldman Sachs increased theirs by three-tenths of a point to 2.9 percent. Economic activity expanded at a meager 0.1 percent rate in the last three months of last year, the slowest pace since the first quarter of 2011.

Made a Mistake
Economists also said they had been mistaken to believe that businesses would retrench if it became clear deep government spending cuts were going to take hold. They said they had simply been drawing on lessons learned during the acrimonious fight in 2011 to raise the government’s borrowing limit, a battle that hit confidence hard. “The chance we decided to take was for a more upfront impact from sequestration; in reality that is not what we are seeing,” said Adolfo Laurenti, deputy chief economist, Mesirow Financial in Chicago. “Businesses have taken it at a more leisurely pace.” 

Indeed, a Deloitte Growth Enterprise Services survey of about 1,000 mid-market executives this month found little evidence the spending cuts were worrying businesses. About 72 percent of respondents said sequestration would not affect their businesses and 91 percent said they had not put off hiring because of the cuts. That could be an indication of the confidence generated by the Fed’s willingness to aid the economy, economists say. Also helping the economy is the fact that banks are starting to ease lending standards and household balance sheets have improved after being ravaged by the housing market’s collapse. 

“What we have been seeing for a while is households have worked down their debt loads and they are now starting to expand their borrowing and, across the board, bank lending is increasing,” said Steve Cunningham, head of research at the American Institute for Economic Research in Great Barrington, Massachusetts. “So monetary policy is becoming effective in that respect.” Fed data this month showed household debt in the fourth quarter grew at its fastest pace since early 2008, while a measure of the burden of carrying debt sank to a record low. 

In addition, consumer credit has increased solidly from last year through January of this year and banks in January reported stronger loan demand and easier credit standards. Still, the economy is not out of the woods by any means. Part of the expected bounce back in growth this quarter will come from a buildup in business inventories, which means second quarter growth could fall short of the January-March rate. 

As a result of the economy’s firmer underlying strength, many analysts now estimate government budget cuts could shave off about 0.3 percentage point from GDP this year, half of what was predicted by the nonpartisan Congressional Budget Office. “The drag from sequestration is probably a little bit smaller than we thought a month ago,” said Mesirow Financial’s Laurenti. “We have a better economy that is in a better position to absorb a negative shock.”

Reuters
source : the jakarta globe

0 France's Sarkozy Charged in Probe of Illegal Party Funding

Former president Nicolas Sarkozy has been charged with taking financial advantage of France's richest woman, as part of a probe into illegal party funding that could shatter his hopes of a political comeback. His lawyers said they would appeal against the decision to formally investigate Sarkozy over allegations he took advantage of elderly L'Oreal heiress Liliane Bettencourt when she was weakened by poor health. 

He was unexpectedly summoned on Thursday to the Bordeaux offices of Jean-Michel Gentil, the judge in charge of the case, for face-to-face encounters with at least four former members of Bettencourt's staff. The surprise confrontation came over claims he had accepted envelopes stuffed with cash from the world's richest woman to fund his 2007 election campaign. Gentil was seeking to establish how many times Sarkozy had visited Bettencourt during his successful campaign. Sarkozy, 58, has always maintained that he visited Bettencourt's residence only once during the campaign, to meet her late husband. 

Members of the multi-billionaire's staff have, however, contradicted his version of events. Sarkozy's lawyer Thierry Herzog lambasted the decision to pursue his client as "legally incoherent and unfair". He said he would immediately initiate proceedings to have the charges dropped. Back in November, Gentil and two other examining magistrates spent 12 hours questioning Sarkozy. They decided not to formally charge him then but to continue investigating the allegations against him. 

France's legal system has nothing that exactly matches the charges or indictments brought in English, or US courts; but an investigating judge's decision to place someone under judicial investigation is the closest equivalent. Bettencourt is now 90. Medical experts say her mental capacity began to deteriorate from the autumn of 2006. The allegation is that Sarkozy obtained significant amounts of money from her, breaching electoral spending limits and taking advantage of a person weakened by ill health. 

Bettencourt's former accountant, Claire Thibout, told police in 2010 she had handed envelopes filled with cash to Bettencourt's right-hand man, Patrice de Maistre, on the understanding it was to be passed on to Sarkozy's campaign treasurer, Eric Woerth. Woerth has already been charged in the affair. Investigators suspect up to four million euros ($5.2 million) of Bettencourt's cash subsequently made its way into the coffers of Sarkozy's UMP party. Sarkozy lost immunity from prosecution when he was defeated in the 2012 presidential election by Socialist Francois Hollande. 

French judges have already successfully pursued Sarkozy's predecessor as president, Jacques Chirac, who was convicted in 2011 on corruption charges related to his time as mayor of Paris. Chirac, excused from attending his trial because of ill health, received a two-year suspended prison term. Since losing to Hollande, Sarkozy has concentrated on making money on the international conference circuit, but he has repeatedly hinted that he is considering another tilt at the presidency in 2017. 

Earlier this month he told Valeurs Actuelles magazine that his sense of duty to his country could see him return to the political arena. During his presidency he won international acclaim as the principal architect of the 2011 NATO campaign that ousted Libyan dictator Moamer Kadhafi. But since losing office he has had to contend with a string of allegations relating to his five years in power and various electoral campaigns he has been involved in. 

As well as the Bettencourt case, he faces probes into alleged cronyism in the awarding of contracts for opinion polls; an illegal police investigation into journalists; and alleged kickbacks on a Pakistani arms deal used to finance the right in 1995, when Sarkozy was budget minister. He has always denied any wrongdoing and remains popular with right-wing activists despite being regarded as a divisive figure among the swing voters who tend to decide French elections. 

Anyone convicted of exploiting a person's weakened mental state can be punished by up to three years in jail, fined up to 375,000 euros ($484,000), and banned from holding public office for up to five years. Sarkozy's troubles come just two days after France's budget minister Jerome Cahuzac resigned Tuesday, as prosecutors announced a full criminal inquiry into allegations that he had an undeclared bank account in Switzerland. Edwy Plenel, co-founder of the Mediapart news website, which first ran the allegations against Cahuzac, told AFP: "This week shows the usefulness of independent journalism, which is very much in the public interest." Mediapart has also taken a leading role covering the Bettencourt affair.

Agence France-Presse
source : the jakarta globe

0 Southeast Asia Human Rights 'Stagnating': US Officials

US officials voiced concern on Thursday about human rights in fast-growing Southeast Asian nations, pointing to a lack of progress in many places and a worsening situation in some. As the United States (US) pursues its rebalance toward Asia, it is also paying greater attention to human rights in many countries such as Cambodia, Myanmar and Vietnam, State Department officials told lawmakers. "Human rights is one of the more difficult issues we raise with our partners, but we must raise them," Acting Assistant Secretary for East Asian Affairs Joseph Yun told a Senate Foreign Relations subcommittee. 

In November, Southeast Asian leaders endorsed a controversial human rights pact, hailing it as a landmark accord to help protect some 600 million people. But critics said it had left too many loopholes for Asean, which groups a diverse range of political systems ranging from authoritarian regimes in Laos and Vietnam to freewheeling democracies such as the Philippines. "While the substance of declaration on human rights is not what we would wish, I would say that Southeast Asians doing it is an important fact," Yun insisted. 

"They have never agreed among all of them... whether they ought to have common human rights goals," he said, admitting there was still a long way to go. In Vietnam, for example, "we've been disappointed in recent years to see backsliding, particularly on freedom of expression issues," said Deputy Assistant Secretary for Human Rights and Democracy Dan Baer. He cited concerns about the prosecutions of people for speaking out on the Internet, adding there had been "some progress in religious freedom issues in Vietnam a few years ago, and that, too, seems to have stagnated." 

Things had not improved in Cambodia either, while in Laos, the disappearance of activist Sombath Somphone in December "had a chilling effect on the broader civil society" because he had not been viewed "as a particularly radical guy". Both men highlighted that it was also important to keep an eye on the role of the military in Southeast Asian nations, particularly in Myanmar, also known as Burma, which was under military rule for six decades. "We're seeing far less military intervention than we ever did, which is very, very good news," Yun told the senators. 

"But we still have situations - the prime example being Burma - where 25 percent of their legislature is appointed by the military," he said, adding that "it's not a sustainable, long-term situation." Baer said military-to-military relationships were a good way of setting an example in the region. "There's no easy recipe for persuading a bunch of guys who have had a lot of power and gotten a lot of money for a long time to give that up," Baer said. But he referred to a human rights dialogue held in October attended by US Army Pacific commander Lieutenant General Francis Wiercinski. 

Having "a guy with three stars on his shoulders deliver that message, it was certainly more powerful than had it come from me, but even more powerful than had it come from any civilian".

Agence France-Presse
source : the jakarta globe

0 Football: After Boateng, Italy Looks to Long Fight with Racism

It took a defiant gesture to reignite the debate on one of Italian sport's biggest demons, but the fight to rid football of racism in Serie A could be just beginning. On Friday Kevin-Prince Boateng, a German-born Ghanaian who plays for Serie A giants AC Milan, will hold talks with FIFA president Sepp Blatter. However football tactics or Ghana's recent showing at the Africa Cup of Nations are likely to give way to discussion of one of the scourges of the modern game. 

In a January friendly against Pro Patria, Boateng and two other black teammates suffered racist abuse from a small group of fans of the side from Busto Arsizio outside Milan. Boateng took offence and walked off the pitch, followed by his entire team. It was seen as a pivotal moment and following other, unrelated incidents this season the Italian federation (FIGC) has pledged to take a firmer stance on racism. "As a federation we are totally committed to (tackling) these issues," the FIGC's director general Antonello Valentini told Radio Anch'io Sport midweek. 

What that will amount to remains to be seen, but what is certain is that racism in Italy and elsewhere is firmly back in the spotlight. At a recent Inter-Milan derby Milan striker Mario Balotelli - born in Palermo to Ghanaian parents who gave him up for adoption, and who now plays for Italy - was subjected to monkey noises and inflatable bananas. Inter, Balotelli's former club and one created because its founding members wanted to welcome foreign players as well as Italians, were fined 50,000 euros by Italian league authorities. Last week Inter fans subjected Tottenham's Togo striker Emmanuel Adebayor to monkey chants during a recent Europa League clash. 

They are now facing sanctions by UEFA, European football's governing body which earlier this season fined Lazio after its fans racially abused fans of Tottenham, which has close ties to the Jewish community, and brandished "Free Palestine" banners at a Europa League tie in Rome. In Italy, some would argue the terraces are theatres of expression for society's ills. In the 1980s the rise of the Lega Nord political party - which pitted rich northerners against their poorer, more rustic cousins from the south - drove a bigger wedge into the north--south divide. 

To the tune of Italian classic 'O sole mio', Roma fans used to sing: "I have only one dream, Milan in flames." Milan's fans, referring to the influx of southerners to the northern industrial city, retorted: "Milan in flames? And where will you work?" Immigration - which began late, in the 1980s and 1990s, compared to Britain and France - changed the landscape. Although north-south, regional and inter-city rivalries still prevail, sections of the terraces at some clubs - where politically-motivated hardcore 'ultra' fans often call the shots - began targeting black or Jewish players. 

At AC Milan Dutch great Ruud Gullit was infamously subjected to 'bu-bu' chants while in 2000 France midfielder Patrick Vieira suffered racist abuse on the field from Serbian midfielder Sinisa Mihajlovic while playing for Arsenal against Lazio in the Champions League. Italy, however, has also witnessed the creation of anti-racism groups and outporings of support for black or non-white players who have been subjected to racism. When, during the 2000-2001 season Serie B (second division) side Treviso were threatened with relegation some of the club's fans began abusing their own striker, Nigerian Akeem Omolade. 

In solidarity, Treviso's players took to the pitch at their next home game with their faces painted black. It is likely to take more to change attitudes, but the times may be about to change and clubs, it seems, are beginning to act. After repeated fines this season for 'discriminatory abuse' by fans, Juventus coach Antonio Conte recently hit out at the "idiots" among the Bianconeri support. Juve director general Beppe Marotta, announcing an anti-racism drive, admitted, however: "We know that football can't do much on its own, it requires a change of culture and education." 

Boateng meets Blatter 24 hours after the Ghanaian gave an anti-racism speech at the UN (United Nations) in Geneva, where he later watched Italy take on Brazil in a friendly. "Racism doesn't go away. If we don't confront it, it will spread," Boateng told delegates. It could take a decision by Blatter to add much-needed momentum. Reacting to racism in Russian football this season, Blatter admitted it may take sanctions ranging from points deduction or even demotion to get the message through. "Without serious sanctions nothing will ever change," said the head of world football.

Agence France-Presse
source : the jakarta globe

0 Hospitality Panel Names Best Hotels in Indonesia

A panel of hospitality industry leaders and consultants has revealed the nine best hotels in the country under the inaugural Hospitality Investment World Indonesia Hotel Awards competition. The awards were grouped under three main categories and the winners were decided by a panel that evaluated 61 nominations, a statement from the organizers obtained in Jakarta on Friday said. In the hotel brands category, Accor was named best global hotel chain, Santika Indonesia Hotels & Resorts won best local hotel chain, Harris Hotel took home best mid-range hotel chain and best economy hotel chain went to Fave Hotel. 

In the individual property category, the St. Regis Bali Resort was declared the best luxury hotel, Alila Villas Soori was named best boutique hotel, Pullman Jakarta Central Park won best business hotel and W Retreat & Spa Bali earned the title of best resort hotel. The Tugu Hotels Group won the HIW culture award. The competition was conducted in conjunction with the 2nd Hospitality Investment World Indonesia 2013 conference in Jakarta earlier this week. 

The panel of judges for this year included Bill Barnett, managing director of C9 Hotelworks; Wiryanti Sukamdani, chairman of the Indonesia Hotel & Restaurant Association; Mimi Hudoyo, editor at Travel Trade Media; James Stuart, managing partner of The Brand Company; and Horwath, director of Rio Kondo. The conference, held with the support of the Ministry of Tourism and Creative Economy, brought together more than 200 hotel operators, owners and industry experts in the Indonesia hospitality market.

source : the jakarta globe

0 Cyprus to decide on new plan aimed at securing bailout

Cypriot leaders are to decide on Thursday on a newly drawn up plan aimed at securing a bailout for the near-bankrupt eurozone member, after parliament rejected a controversial tax on savings. President Nicos Anastasiades is to "present a Plan B package to party leaders tomorrow at the presidential palace," state television reported Wednesday, after he chaired an emergency cabinet meeting called to weigh the alternative plan. "A decision on a Cyprus rescue must be made on Thursday at the latest," the official CNA news agency quoted Anastasiades as saying as he left the palace on Wednesday night. 

The proposals, which might still include the controversial bank levy in some form, were put forward at the cabinet meeting called to end a crisis that has forced the authorities to shut the Mediterranean island's banks for 10 straight days. Unnamed government sources quoted by CNA said the rescue plan included the creation of a "structural investment fund, which will be reinforced by various provident funds, real estate," and other sources. "The fund will also be linked with a bond issue and natural gas prospects," the agency said. 

The measures were hastily drawn up after Finance Minister Michalis Sarris failed to make any progress in Moscow talks to secure aid as a rough-bargaining Russia sought lucrative assets in exchange for more help. The finance ministry said banks, which last opened their doors on Friday, would remain closed again on Thursday and Friday "on grounds of public interest in order to ensure financial stability". With Monday a scheduled public holiday, there is no prospect of any banking transactions before Tuesday, amid fears of a run on accounts by spooked deposit holders. 

That has dealt another blow to Cyprus's debt-laded economy, which contracted 2.3 percent in 2012, having taken a battering from the global financial crisis and its exposure to Greece. "We cannot buy, we cannot sell," lamented Costakis Sophoclides, the director of a frozen goods company in Nicosia. "A lot of my customers are hotels and restaurants... and we cannot supply them... I have 25 employees now but next week I will have no products in my stores. What will happen?" The authorities spent Wednesday in talks after MPs the previous day rejected a measure that would have slapped an unprecedented one-time levy of up to 9.9 percent on bank deposits as a condition for a 10-billion-euro ($13-billion) loan. 

The troika of lenders -- European Union, European Central Bank and International Monetary Fund (IMF) -- agreed the bailout on Saturday on condition Cyprus raised another 5.8 billion euros. Brazil's IMF representative on Wednesday criticised the bank deposit tax plan. Paulo Nogueira Batista, who represents Brazil and 10 other Latin American countries on the IMF executive board, said the move took him by surprise and called it "highly problematic." Thursday was "expected to be a difficult day," said the CNA, which quoted government sources as saying Anastasiades would submit the rescue plan to party leaders at 0730 GMT and put it to the parliament in the afternoon. 

While money is still available from ATM cashpoints, dwindling liquidity has seen petrol stations close their credit card facilities and many stores refuse cheques. The head of the powerful Orthodox Church, the largest landowner in Cyprus, Archbishop Chrysostomos II, offered to help by putting church assets at the government's disposal. Following the parliamentary "No" vote, in which ruling party MPs abstained, Cyprus turned to Russia, with Anastasiades sending Sarris to Moscow to seek new assistance and an easing of the terms of a 2.5-billion-euro loan which Moscow afforded Nicosia in 2011. 

Russians have $31 billion in private and corporate cash deposited in Cypriot banks. Russian Prime Minister Dmitry Medvedev said the bailout had been bungled and that the solution should not damage Moscow's relations with the EU. "I hope that in the end the solution adopted will be as thought through as possible and will at the same time aid Cyprus and not harm our relations with the EU," he said. Sarris, meanwhile, was upbeat after meeting his Russian counterpart Anton Siluanov before talks with First Deputy Prime Minister Igor Shuvalov about a possible new loan, describing it as a "very good beginning". 

Reports said the Moscow talks would continue on Thursday. Meanwhile, US Federal Reserve chief Ben Bernanke said that, so far, "we are not seeing a major risk to the US financial system or the US economy" from the crisis in Cyprus. But he added: "I don't think the impact has been enormous" on markets overall, pointing to the rebound Wednesday in European trade. Although no solution was yet clear in the Cyprus drama, the extension of the closure of the island country's banks while talks continued appeared to calm markets. The euro rebounded modestly in early trading on Asian markets Wednesday after earlier sharp losses caused by the Cyprus bailout. At 2100 GMT, the euro traded at $1.2937, up from $1.2881 late Tuesday.

AFP
source : the jakarta globe

0 Australian PM calls leadership ballot

Australian Prime Minister Julia Gillard caved in to building pressure and called a leadership ballot of parliamentarians in her Labor party for later Thursday. "I have determined that there will be a ballot for the leadership at 4.30pm (0530 GMT) today. In the meantime, take your best shot," she said in parliament, adding that the vote would also be for the deputy leadership. 

Her decision followed senior cabinet minister Simon Crean openly calling for a ballot, with leadership speculation rampant as Gillard lags badly in opinion polls just six months out from national elections.Crean said the speculation was "killing" the party as former leader Kevin Rudd waits in the wings and his backers campaign behind the scenes. "He has got no option but to run," Crean said of Rudd. "We have to get on with the message and it has to become an inclusive party." Rudd was brutally ousted by Gillard in mid 2010 and lost a 2012 leadership challenge 71-31.

AFP
source : the jakarta globe

0 Gita Denies Profiting From Bank Century

Trade Minister Gita Wirjawan denied on Wednesday that he still held shares in Ancora Land, a company with connections to the now-defunct Bank Century. Summoned to appear before the House of Representatives’ special committee into the bank’s controversial 2008 bailout, Gita said that he had delegated his ownership and management of the Ancora Group to others since joining the government and becoming a minister. 

Gita’s name has been linked to the infamous Bank Century scandal before, but he was cleared of any wrongdoing by police. The trade minister, who started Ancora Capital, said that people were making false allegations against him, including that he owns a 21-hectare plot of land in South Jakarta. The same people claim that Graha Nusa Utama, in which Ancora now has shares, received Bank Century bailout money to buy the land located behind the Fatmawati general hospital. 

“With regards to the recent news reports about PT Ancora Land, I no longer have ownership [in the company] both directly and indirectly,” Gita told lawmakers. “I came to this meeting because I’m willing to answer several questions and to straighten out comments that need to be clarified with regards to PT Ancora Land’s involvement [in the Bank Century bailout case].” Gita found himself in hot water after Hendrawan Pratikno, a Bank Century committee member from the Indonesian Democratic Party of Struggle (PDI-P), implied that the trade minister received bailout funds when Ancora Land bought 55 percent of GNU’s shares. “Ancora Land is owned by Gita Wirjawan. 

The question is, why did he acquire a company which was not doing well? The company was used only to launder money,” Hendrawan said recently. University of Gadjah Mada criminal law professor Eddy O.S. Hiariej said the finger-pointing lawmakers did not understand Ancora’s company maneuvers properly. When Ancora agreed to acquire GNU’s shares in 2008, Eddy said the latter was not in legal trouble. “When the acquisition of shares took place, PT GNU’s only asset was that plot of land in Fatmawati,” he said. 

“There were no other assets.” Eddy said even if GNU had wealth stemming from banking crimes and money laundering committed by Bank Century owner Robert Tantular or GNU’s president director Toto Kunjoro, Ancora Land would have been misled according to criminal law. In January, Gita said that the 21-hectare plot was taken over by one of Ancora’s affiliates after GNU brought it from Yayasan Fatmawati in 2003. He stressed the land was purchased by GNU “long before the Bank Century bailout,” which took place five years later. 

Gita also said that Ancora began purchasing GNU shares in 2008, but the transaction was only made official in October 2010, long after the bailout case had made headlines. He said that up until the time the transaction was completed, GNU’s ownership of the land in question was legal. The National Police in December cleared Gita of involvement in the Rp 6.7 trillion Bank Century bailout scandal, announcing that the minister’s company did not receive funds from the troubled bank.

source : the jakarta globe

0 House Sacks Rogue PKB Lawmakers

Despite the threat of civil and criminal lawsuits, the House of Representatives on Wednesday inaugurated two new members of the National Awakening Party, replacing a pair of maverick lawmakers who have vowed to fight their dismissals. Lily Wahid and Effendy Choirie were sacked by the party known as PKB after refusing to support its position on the controversial Rp 6.7 trillion ($690 million) bailout of Indonesia’s Bank Century in 2008. 

Contrary to the party’s stance, the pair argued in a House debate that the emergency funding package was illegal. Following their dismissal, the PKB then petitioned for the pair to be permanently ousted from the House, a move President Susilo Bambang Yudhoyono approved last week. On Wednesday, the House secretary general officially replaced Lily and Effendy with Jazilul Fawaid and Andi Muawiyah Ramli. 

“I have an obligation to inaugurate [Jazilul and Andi], and although there is a motion to stop the inauguration, I can’t delay it,” House speaker Marzuki Alie said after the swearing-in ceremony. Effendy has said that he would file a civil lawsuit against Yudhoyono and Marzuki if they proceeded with the dismissal. Leader of the PKB’s faction in the House, Marwan Jafar, applauded the decision to press ahead with the pair’s dismissal despite the threat of legal action. 

Lily and Effendy “have not only been disobedient, they have both harmed the PKB with their behavior,” he said. Marwan added the party would still welcome the pair back if they apologized. But PKB secretary general Imam Nahrowi said that the likelihood of that happening was remote. “It has been a long time since Lily and Effendy talked to party officials,” he said. “They don’t feel the need to communicate with us and we have nothing to say to them.”

source : the jakarta globe

0 YouTube Passes Billion User Mark

More than a billion people use YouTube each month, it says, with viewing on smartphones helping drive growth. In a blog post, the YouTube team noted that nearly one out of every two people on the Internet visits the website, which has grown into a global hit since launching in 2005. "If YouTube were a country, we'd be the third largest in the world after China and India," the team said. "PSY and Madonna would have to repeat their Madison Square Garden performance in front of a packed house 200,000 more times. 

That's a lot of Gangnam Style," it added referring to the South Korean rapper and American pop singer. Google bought YouTube in 2006 for $1.65 billion and has yet to disclose whether the service has turned a profit. YouTube has gradually added professional content, such as full-length television shows and movies to its vast trove of amateur video offerings in a bid to attract advertisers. YouTube confirmed early this year that its evolution as an Internet stage for video may include subscriptions to content that creators expect people would pay to watch. 

"We have long maintained that different content requires different types of payment models," a YouTube spokesman told AFP. "There are a lot of our content creators that think they would benefit from subscriptions, so we're looking at that." YouTube's layout showcasing television-style channels sets the stage for film or television studios to create pay channels on the service. The video-sharing service says it is trying to "marry the best of TV and the best of online."

Agence France-Presse
source : the jakarta globe

0 Al-Qaeda says French hostage killed in Mali

A French hostage has been executed in Mali, a man claiming to be a spokesman for Al-Qaeda in North Africa told Mauritania's ANI news agency. A French foreign office spokesman said Paris was trying to verify the report of the killing of Philippe Verdon, who was kidnapped in November 2011, adding that "we don't know at the moment" whether it was reliable. The private Mauritanian news agency reported that someone calling himself Al-Qairawani and claiming to be a spokesman for Al-Qaeda in the Islamic Maghreb (AQIM) group told them that the "spy" Verdon had been executed "on March 10 in response to France's intervention in Northern Mali." 

"The French President (Francois) Hollande is responsible for the lives of the other French hostages," he warned. In all 15 French nationals, including Verdon, are being held captive in Africa, with AQIM claiming responsibility for six of the kidnappings. Verdon was seized on the night of November 24, 2011 along with Serge Lazarevic. According to their families the two men had been on a business trip and were kidnapped from their hotel in Hombori, northeast Mali. The families denied that the two men were mercenaries or secret service agents. 

AQIM swiftly claimed responsibility for the kidnappings and in August last year a video showing Verdon describing the "difficult living conditions" was released on a Mauritanian website. The hostages' families have in recent weeks expressed growing fears for their loved ones in the light of France's military actions in Mali. Earlier Tuesday, Verdon's father Jean-Pierre Verdon complained that the families were hearing nothing from the French authorities. "We are in a total fog and it is impossible to live this way," he told RTL radio. "We have no information." 

Asked about France's refusal to pay ransoms to kidnappers, Verdon senior replied that the families had no say in such "decisions of state". Paris deployed forces in Mali on January 11 to help stop Al-Qaeda linked fighters who had controlled the north of the country since April 2012 from moving southward and threatening the capital Bamako. France now has more than 4,000 troops on the ground in Mali, of whom about 1,200 are currently deployed in the northeast, carrying out clean-up operations after driving out most of the Islamist rebels from the area. 

There are still pockets of resistance in areas such as Gao, which have witnessed stray attacks and suicide bombings since the Islamists fled. The French troops in the region are backed up by African forces. Soldiers from Chad, whose experience and training has made them key in the French-led offensive, have also suffered casualties with at least 26 deaths. On Tuesday the French army announced that 15 Islamist fighters had been killed in recent days in the northern Mali region of Gao, with the seizure of a large cache of arms and ammunition. 

The AQIM source cited by the Mauritanian news agency refused to confirm reports that top Islamist rebels, Mokhtar Belmokhtar and Abdelhamid Abou Zeid had been killed in Mali earlier this month. France has been carrying out DNA tests to determine whether the militant leaders are among those killed in recent fighting in Mali.

AFP
source : the jakarta globe

0 Saratoga Keen to Offload 20% Stake in Finance Firm

Private equity fund Saratoga Capital plans to sell up to 20 percent of its holding in multifinancing company Mitra Pinasthika Mustika via an initial public offering within months. Saratoga official Kay Mock told the Jakarta Globe that Saratoga is preparing an IPO for MPM, an automotive multifinancing specialist, in June. Mock said Saratoga would sell between 10 percent and 20 percent of MPM, but did not disclose the targeted proceeds. He was speaking on the sidelines of an Asian Venture Capital Journal seminar in Jakarta on Tuesday. 

Morgan Stanley has been hired as an underwriter to help manage the share sales, he said, declining to identify other investment bankers involved. MPM, established in 1987, is the sole distributor of Honda motorcycles in East Java and East Nusa Tenggara. The company also produces motorbike lubricants and serves as an automotive dealership and financier. Saratoga also plans to sell a stake in Saratoga Investama Sedaya, a private equity unit in the group, via an IPO. Mock said he was unable to comment on SIS’s listing plans. Catharina Latjuba, a representative of Saratoga Capital, told the Jakarta Globe in January that SIS is expected to conduct its IPO in the middle of this year. 

Mock said that SIS was the holding company for the first private fund set up by businessmen Sandiaga Uno and Edwin Soeryadjaya under the Saratoga umbrella. Saratoga may raise more than $200 million from the IPO for SIS, it was reported in January. Other than these IPOs, Mock said, Saratoga is seeking business opportunities in other industries in Indonesia. “What we are focusing on are natural resources in Indonesia, infrastructure and consumer-related [opportunities],” he said. “We just recently committed to a toll-road transaction, so we are going to get involved in the toll road.” 

The toll road will stretch from Cikampek in West Java to Pademangan in North Jakarta, and will link to the Trans-Java toll road. Mock said the toll-road project was previously owned by Lintas Marga Sedaya, in which Saratoga is a minority investor. A 55 percent controlling stake in the company is held by Plus Expressway, a company partly owned by Malaysia’s Khazanah Group. Saratoga set up a new fund of $600 million in 2011, Mock said, of which $135 million has been “committed” for investment. Separately, Saratoga Capital has bought a 7 percent stake in Nusa Raya Citra, the construction arm of Surya Semesta Internusa, for Rp 105 billion ($10.8 million). 

“Saratoga will buy the stake through an IPO in May,” Johannes Suriadjaja, president director of Surya Semesta, said in Jakarta, according to a Monday report from Investor Daily newspaper. NRC plans to sell a 20 percent stake in May’s IPO, through which the company hopes to raise Rp 300 billion. The company has hired Ciptadana Securities to help it arrange the IPO. Surya Semesta currently holds a 83.3 percent stake in NRC, according to company data last year. NRC had total assets of Rp 837 billion as of December last year. Sandiaga and Edwin founded Saratoga in 1998, and the company now oversees more than $2 billion, according to its website. 

It closed its third fund in May 2012. Saratoga’s investments include Adaro Energy, Indonesia’s second-largest coal producer, and Tower Bersama Group, a provider of telecommunications infrastructure. The private equity firm plans to invest about $480 million, mainly in consumer-related companies, ahead of a planned initial public offering this year, it was reported in January. Saratoga Investama Sedaya, which owns the shares in Adaro Energy, was seeking to buy at least one consumer-related company, Edwin said in a recent interview, declining to name the target. Saratoga will team up with other investors because the deal may exceed the fund’s $90 million cap for a single project, he said. 

Edwin is counting on rising domestic consumption in Indonesia to boost returns as a slowdown in global growth has weakened prices of commodities such as coal and palm oil. Private consumption accounts for about 56 percent of Indonesia’s $850 billion economy, according to government data. Saratoga’s Asia Fund III manages about $600 million, of which around $120 million has been invested, Edwin said, adding that individual investments by the fund cannot exceed 15 percent of its total assets. Like other private equity funds, Saratoga’s business model depends on borrowing heavily to buy companies whose performance it believes it can improve, before later selling those companies at a profit.

Additional reporting from Bloomberg
source : the jakarta globe

0 ABM Investama Secures $225m Coal Pit Contract

Coal miner ABM Investama has, through its mining services provider, sealed a $225 million deal for works on a coal pit in Musi Banyuasin, South Sumatra. ABM told the Jakarta Globe on Tuesday its unit Cipta Kridatama signed the five-year contract — valid until 2018 — with coal mining company Realita Jaya Mandiri on Friday. Cipta Kridatama’s president director Boedi Santoso and his Realita Jaya Mandiri counterpart Arif Syaifuddin were both present to ink the deal. 

Under the agreement, Cipta Kridatama will provide overburden removal and heavy equipment lease services to develop Realita Jaya Mandiri’s Musi Banyuasin mine, which mainly supplies a power plant in Banten. “We very much appreciate this opportunity to work with RJM,” Boedi said. “Not only do we note the company’s commitment to responsible operations, but we also know this deal recognizes the high-quality services we provide. Our contributions to RJM will maximize its performance long-term.” 

ABM Investama president director Andi Djajanegara said the agreement would see both partners breaking into new territory. “This contract will expand CK’s and ABM’s operational reach to Sumatra and diversify CK’s operational locations, which are currently concentrated in Kalimantan,” he said. Founded in 1997, Cipta Kridatama is one of the leading coal mining service providers in Indonesia, offering pit-to-port assistance around the archipelago. The company is staffed by more than 3,400 employees and operates in excess of 624 units of heavy equipment. 

ABM Investama is an integrated energy firm focused on coal production, contract mining services and power solutions, supported by engineering services and integrated logistics. It is part of the Tiara Marga Trakindo Group, controlled by the Hamami family, which earned its fortune in the heavy equipment industry 40 years ago. ABM’s shares were unchanged at Rp 3,200 in Tuesday trading on the Indonesia Stock Exchange. Earlier this month, the company announced its unit Reswara Minergi Hartama had obtained a combined $150 million loan to finance coal mining asset development in Aceh. 

Meanwhile, Realita Jaya Mandiri is undertaking exploration activities in several regencies in South Sumatra: Sumber Harum, Sidomulyo, Simpang Tungkal, Bayung Lencir and Musi Banyuasin.

source : the jakarta globe

0 Airbus to Set up a Workshop in Batam

French aircraft manufacturer Airbus SAS has agreed to establish a workshop on Batam island in Riau Islands province at the request of Lion Air, just a day after the airline agreed to purchase 234 single-aisle aircraft from the plane maker on Monday. Lion Air president Rusdi Kirana said on Tuesday that the airline has sought support from Airbus as part of the $24 billion deal, including the French company setting up an airplane workshop on Batam. 

The 16-hectare workshop is expected to begin the first stage of operations by the middle of this year. “Domestic airlines will not only sell tickets but can also maintain their aircraft within the country,” Rusdi said. “[The workshop] is not only for domestic-owned aircraft, but also for foreign airlines.” Rusdi said the workshop was expected to create jobs in Indonesia. “This creates job vacancies as well as giving foreign exchange to our country,” Rusdi said on Monday at the Airbus Delivery Center in Toulouse. 

Rusdi said some Airbus technicians will work at the facility so that it can acquire European certification in aircraft maintenance. With the certification, he expects foreign airlines to send their aircraft to the Batam facility for maintenance. Lion Air has also asked Airbus to start a joint company for the training of pilots and technicians. As the company behind Airbus’s biggest-ever order, Lion Air also encouraged Airbus to order aircraft components from Indonesia’s own aircraft manufacturer Dirgantara Indonesia, Rusdi said. 

“We have the power to lobby them because we are their biggest buyer and they [Airbus] have been really cooperative about this idea,” Rusdi said. Monday’s record $24 billion deal will be financed by the European Credit Agencies. Rusdi said the ECA could loan the company 85 percent of the total value of the deal, with the remaining 15 percent financed by a commercial syndication. Lion will have no share in the financing. Lion is expected to cover the loan within 12 years through installments. 

“In 10 to 12 years we can cover the finance. I am sure because of technology, cheaper aircraft maintenance, efficient fuel as well as a growing market,” Rusdi said. When asked what collateral Lion Air has to receive such a large loan, Rusdi said with a smile “Rusdi Kirana [is the collateral].” “The loan is to encourage Europe exports and imports and for them, Lion has a good track record. So our capital is trust,” he said. The 234 aircraft ordered will increase the number of planes in Lion Air’s fleet to 727. 

The company has said it aims to have 1,000 aircraft by 2027. The company has hinted at plans to establish new airlines in the Asia-Pacific region. This expansion has started with Lion Air’s Malaysian low-cost carrier Malindo Air, which has its first flight scheduled for Friday. With the new planes, Lion Air will be able to provide a varied range of services, ranging from low-cost to full service. In 2011, Lion ordered Boeing aircraft worth $21.7 billion. John Leahy, chief operating officer-customer at Airbus, said the airline industry is growing fast. 

He said air travel globally doubled every 15 years despite economic conditions, while in the Asia-Pacific region, it doubled every 10 years. Air transport growth, Leahy said, is highest in expanding regions like China, India, Indonesia, the Middle East, Asia, Africa and Latin America. He added that the aviation industry matched advancements in emerging economies. He added that Indonesian was a key growth market for air travel because of the big population, vast travel distances and economic growth. 

“Despite the big population, less than 10 percent of the population has flown on a commercial aircraft and that is something that Rusdi wants to change,” he said, referring to the deal between Airbus and Lion Air. Leahy said that in Indonesia, one in five people take a trip once a year, one-10th of the rate of travel in more developed New Zealand. “With the economic development in Indonesia, air traffic will be dramatically increased,” he said. In January, Indonesia’s Batavia Air went bankrupt, and some commentators have said some airlines in Southeast Asia have already overcapitalized.

source : the jakarta globe

0 Cooling systems restored at Fukushima reactors: TEPCO

Technicians have restored power to all cooling systems at the reactors of Japan's tsunami-hit Fukushima nuclear plant, the operating company said Wednesday after a blackout sparked a new crisis. Equipment in pools used to cool used fuel became fully operational from 0:12 am (1512 GMT), some 30 hours after the blackout, Tokyo Electric Power Co. (TEPCO) said. Used nuclear fuel becomes dangerous if its temperature is allowed to rise uncontrollably to the point where a self-sustaining critical reaction begins, causing a meltdown. 

The incident was a reminder of the vulnerable state of the Fukushima plant two years after the tsunami, despite the government's claim that the reactors are in a "cold shutdown" state and no longer releasing high levels of radiation. The latest crisis began Monday night with a brief power outage at a building on the plant's site that serves as the central command for work to contain the nuclear accident and to dismantle the reactors. The initial glitch cut electricity to the cooling pools at three of four heavily damaged reactors as well as a common pool at 7:00 pm (1000 GMT) on Monday, according to TEPCO. 

By Tuesday evening engineers had managed to restart cooling systems in the three affected reactor pools, TEPCO said. A separate cooling system for the common pool was restarted just after midnight Wednesday, ending the latest problem, the company said. "At 0:12 am today (Wednesday), the common pool cooling purification system was restarted," TEPCO said in a statement. "All of the systems have been restarted." TEPCO has stressed that the glitch was fixed before any lasting damage was caused, saying the temperatures of all the fuel pools remained well below the safety limit of 65 degrees Celsius (149 degrees Fahrenheit). 

Company officials say there has been no major change to the level of radioactivity at nearby monitoring spots. Monday's outage knocked out power to nine facilities at the plant, its largest simultaneous electricity failure since it was brought under control in December 2011. TEPCO is yet to identify the cause of the blackout, but suspects a problem with a switchboard. The firm says the incident did not affect the injection of cooling water into reactors whose cores melted down soon after the start of the 2011 nuclear crisis. The meltdown of three of Fukushima's six reactors occurred after an earthquake and huge tsunami on March 11, 2011, which shut off the power supply and cooling system. 

TEPCO drew flak for playing down the scale of the disaster in the first few months. It has since admitted it had been aware of the potential dangers of a big tsunami but did nothing for fear of the reputational and financial cost. The latest incident rekindled public concern about whether the politically connected utility is being fully transparent. TEPCO informed the government's regulatory agency about the blackout shortly after it started, but waited three hours before issuing a public press release.

AFP
source : the jakarta globe

0 Asia stocks bounce back after Cyprus scare

Asian stock markets rose Tuesday, shaking off jitters sparked by a plan to give bank deposits in Cyprus a haircut to help fund the European country's bailout. Most benchmarks rose modestly while Japan's Nikkei 225 index jumped 2 percent to 12,467.18 as the yen began to drop against the dollar. Hong Kong's Hang Seng rose 0.5 percent to 22,201.93. South Korea's Kospi rose 1 percent to 1,987.52. Australia's S&P/ASX 200 advanced 0.2 percent to 5,023.50. 

Benchmarks in Singapore, Taiwan and Indonesia rose, while the Philippines dropped. Stock markets dropped around the world Monday as jitters intensified over an agreement between cash-strapped Cyprus and its lenders to fund a 15.8 billion euros ($20.4 billion) rescue plan by taxing deposits in the country's banks. It would be the first time in the European debt crisis that bank deposits have been seized and has stoked fears of bank runs among the 16 other countries that use the euro. 

Cypriot authorities delayed a parliamentary vote Monday on the plan and ordered the country's banks to remain closed until Thursday while they try to modify the deal to lessen the impact on small depositors. On Wall Street, the Dow dropped 0.4 percent to 14,452.06. The Standard & Poor's 500 index fell 0.6 percent to 1,552.10. The Nasdaq composite index dropped 0.4 percent to 3,237.59. 

Benchmark oil for April delivery was up 17 cents to $93.91 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 29 cents to close at $93.74 per barrel on the Nymex on Monday. In currencies, the euro rose to $1.2959 from $1.2948 late Monday in New York. The dollar rose to 95.66 yen from 95.42 yen.

source : the jakarta post

0 Police say US college student plotted attack

A college student with two guns, hundreds of rounds of ammunition and a backpack filled with explosives pulled a dorm fire alarm Monday in an apparent attempt to force other students out into the open so that he could slaughter them, authorities said. But he instead put a bullet in his head as police closed in. James Oliver Seevakumaran, 30, was found dead in his dorm room at the 51,000-student Orlando campus of the University of Central Florida. No one else was hurt. 

"His timeline got off," said university Police Chief Richard Beary. "We think the rapid response of law enforcement may have changed his ability to think quickly on his feet." Some 500 students were evacuated from the building in the middle of the night, unaware how narrowly they had escaped what could have been another Virginia Tech-style bloodbath. "It could have been a very bad day here for everybody. All things considered, I think we were very blessed here," Beary said. 

"Anybody armed with this type of weapon and ammunition could have hurt a lot of people here, particularly in a crowded area as people were evacuating." Police shed no light on a motive, but university spokesman Grant Heston said that before the episode, the school was in the process of removing Seevakumaran from the dormitory because he hadn't enrolled for the current semester. He had never been seen by university counselors and had no disciplinary problems with other students, Heston said. 

Detectives found notes and other writings that indicated Seevakumaran had carefully planned an attack and "laid out a timeline of where he was going to be and what he was going to do," Beary said. The episode began early Monday, just after midnight, when Seevakumaran pulled a gun on one of his roommates, who holed up in a bathroom and called police, Beary said. Around the same time, Seevakumaran pulled a fire alarm, apparently to get other students out in the open, the police chief said. 

In his room, investigators found four makeshift explosive devices in a backpack, a .45-caliber handgun, a .22-caliber tactical rifle, and a couple of hundred rounds of ammunition, police said. Beary said it appears his weapon and ammunition purchases began in February. Antonio Whitehead, 21, said he heard the fire alarm go off in the dorm and thought it was a routine event. "All of a sudden, I felt the crowd move a little faster. And a police officer with a machine gun or something told everyone to start moving a lot faster," he said. 

Seevakumaran had attended the university from 2010 through the fall semester as a business student. His roommates told detectives that he had shown antisocial behavior but had never shown any violent tendencies, Beary said. According to Florida records, his only adult arrest in the state was in 2006 for driving with a suspended license. Morning classes were canceled, but most campus operations resumed around noon.

source : the jakarta post

0 New BlackBerry Model to Boost Telcos’ Data Revenue in Indonesia

Macquarie Equity Research said the recent launch of BlackBerry’s new Z10 model in Indonesia will help boost data revenue of telecommunication firms. “Data now accounts for 20 percent of industry revenues, which we expect will grow conservatively by 25-30 percent in 2013, effectively driving 65 percent of industry growth of 8-9 percent. The successful launch of smartphones provides upside to estimates,” analyst Riaz Hyder said in a note on Tuesday. 

The research note said industry feedback suggested the initial reaction to Z10 was strong, with unit sales expected to reach 100,000 over the next six months. “Leading retailer Erajaya has already sold almost all of its 19,000 units allocated and is trying to secure additional stock. Rising smartphone adoption [currently around 15 percent] is a key driver for our positive sector thesis.” 

Indonesia’s biggest cellular provider Telkomsel, a unit of Telkom, expects its BlackBerry subscriber base to grow to 40 percent in 2013 while Indosat has the most aggressive data pricing among major operators, with Rp 11 per megabyte (MB), the note said. However, the research house said it is concerned about the operators’ ability to cope with accelerating data usage although capex intensity is likely to remain high in the medium term as operators ramp up 3G coverage. Shares of Indosat rose 2.42 percent to Rp 6,350 (65 US cents) while Telkom shares were up 0.95 percent at Rp 10,600. Erajaya shares rose 0.78 percent to Rp 3,225. The broader index was up 0.57 percent.

Reuters
source : the jakarta globe

0 Pope Francis set for grandiose inauguration mass

World leaders flew in for Pope Francis's inauguration mass in St Peter's Square on Tuesday where Latin America's first pontiff will receive the formal symbols of papal power. Hundreds of thousands of people are expected to attend the mass laden with rituals and spectacular imagery, which will begin with a tour of the famous Vatican plaza by the Argentine pope after his election last week. Still haunted by criticism at home for failing to speak out against the excesses of Argentina's military rule, the former archbishop of Buenos Aires, Jorge Mario Bergoglio, has already won hearts in Rome with a disarmingly informal style. 

Bergoglio was a surprise choice at a conclave of cardinals to replace 85-year-old Benedict XVI, who last month brought a sudden end to a papacy that had often been overshadowed by scandal, saying he was too old to carry on. The jovial Francis has said he chose his papal name in honour of the mediaeval Italian saint St Francis of Assisi and has called for a "poor Church for the poor", warning the world's cardinals against pursuing worldly glories. 

The son of an Italian emigrant railway worker from a working-class quarter of Buenos Aires has been effusive in a way that is unusual in the Vatican, kissing pilgrims and doing impromptu walkabouts. The Vatican has said security guards will have to adapt to the new style. The arrivals have already presented Francis, 76, with a first diplomatic headache in the form of a request from compatriot President Cristina Kirchner of Argentina to mediate in a row with Britain over the Falkland Islands. 

The Chinese government has also said it will not be sending any representatives after Taiwanese President Ma Ying-jeou said he was attending. Zimbabwean President Robert Mugabe also flew in, sidestepping an EU travel ban over human rights abuses in his country that does not apply to the Vatican. Latin America will be heavily represented at the mass by the first non-European pope in nearly 1,300 years, with the presidents of Argentina, Brazil, Chile, Costa Rica, Mexico and Paraguay all expected to attend. The Vatican will be in security lockdown for the event, with 3,000 officers deployed including sharpshooters on the rooftops and bomb disposal experts. 

The day's events will begin with a tour of St Peter's Square by the new pope starting a few minutes before 9:00 am (0800 GMT), after which Francis will pray at the tomb of St Peter, who is considered the first pontiff in Catholic tradition. Francis will then receive from his cardinals the pallium -- a lambswool strip of cloth that symbolises the pope's role as a shepherd -- and the "Fisherman's Ring", a personalised signet ring representing his authority. 

The ring is named in honour of St Peter, a fisherman by trade. The mass proper is expected to begin at around 9:30 am and will include a homily by Francis, who has often strayed from prepared texts with off-the-cuff jokes, anecdotes and passionate exhortations for spiritual renewal. Church leaders have urged Francis to move quickly to reform the intrigue-filled Roman Curia, the central administration of the Roman Catholic Church, and his appointments in the coming weeks will be closely watched. Francis has indicated he will press for a friendlier faith that is closer to ordinary people and for social justice, although the moderate conservative is unlikely to change major tenets of Catholic doctrine. 

Vatican experts say he has also signalled he will pursue a more inclusive "collegial" style of leadership together with the cardinals and bishops. The Church is being challenged on many levels around the world -- including growing secularism in the West, the rise of radical Islam and the ongoing scandal of abuses of children by priests that were hushed up for decades.

AFP
source : the jakarta globe

0 Indonesia's Astra Otoparts Set to Offer 11.4 Billion Fresh Shares

Astra Otoparts, an automotive parts maker and distributor under car giant Astra International, has announced it aims to raise fresh capital by selling shares in a limited public offering in May. Funds from the rights offering will be used to finance debt payments and business expansion plans. The Jakarta-based company said it wanted to generate Rp 3.1 trillion ($319 million) from the limited share offering. Astra Otoparts plans to sell 1.4 billion shares at a price of between Rp 2,200 and Rp 3,400 apiece, according to a brief prospectus published in Bisnis Indonesia on Monday. 

Existing shareholders will be entitled to purchase 20 to 40 new shares for every 100 shares they already own come April 29. Astra Otoparts is 96 percent controlled by Astra International, the largest automotive distributor in the country. Some 74 percent of the limited public offering’s proceeds will be used as an early payment for the company’s accumulated debt and 26 percent will be used to inject capital or provide loans to its subsidiaries in the automotive manufacturing and trade industry. According to Astra Otoparts’ financial statement, the company had a total long-term debt of Rp 401.51 billion at Dec. 31, 2012. 

On Wednesday last week, the firm announced that it had signed an agreement with Pakoakuina to acquire a 51 percent stake in the alloy aluminum wheel rim maker. Pakoakuina also has a stake in Inkoasku, a producer of steel wheel rims for four-wheeled vehicles, and Palingda Nasional, a manufacturer of steel wheel rims for trucks and buses. Last month, Astra Otoparts reported a 2 percent rise in net income to Rp 1.14 trillion last year compared to 12 months prior, while its revenue rose 13 percent to Rp 8.28 trillion. 

Trimegah Securities said the earnings result was above expectations, with net income coming in at 13 percent more than the firm’s analysts had predicted, and 36 percent higher than the forecast made by a group of stock-watchers monitored by Bloomberg. Trimegah estimates Astra Otoparts’ revenue will increase 16 percent to Rp 9.6 trillion this year, while net income is expected to rise 14 percent to Rp 1.3 trillion, supported by anticipated growth in both motorcycle and car sales. Shares of Astra Otoparts traded 2.4 percent lower to close at Rp 4,025 on Monday, while the main index lost 0.3 percent.

source : the jakarta globe