Indonesia and the Global Crisis

Indonesia and the Global
Economy (in Crisis): Can
Indonesia be a Member of the
Global Elite?

Indonesia has a strategic position in the
global and regional economy

Indonesia is a member of the G 20 that can play important role in the common
effort to overcome the current global economic crisis and push for a reformation
of the world financial system.

Indonesia is the largest economy in Southeast Asia and has a leading role in the
effort to create ASEAN Economic Community in 2015 and develop cooperation
under ASEAN+3 and ASEAN+6 .

Under the current global economic crisis, Indonesia’s economy is projected to
grow moderately.

Indonesia is the third largest democratic country with a respected economic
performance.

Democracy works in Indonesia even though not yet deliver optimally.

However, Indonesia does not score well in terms of quality of the economy, such
as Human Development Index, Competitiveness, and governance.

There is possibility for Indonesia to go higher in in the rank of global economic
elite. However, there is also a danger that Indonesia could fall behind, as we
experience in the crisis of 1998, if we can not improve quality of development
significantly.

Policy Response

Place government funds at state-owned banks to increase liquidity in the banking system

Increase the amount of deposits guaranteed by the government in the banking system

Adjust the financial sector with prudential regulation (banks and the capital markets) as needed

Recognize the importance of monetary policy support, as deemed appropriate to domestic
conditions

Manage state-owned enterprises foreign exchange transactions to reduce speculation

Maintain a sufficient level of foreign exchange reserves through trade financing facilities, control of
consumption goods imports and illegal imports

Accelerate the disbursement of program loans for government and state-owned enterprise projects

Prepare crisis protocol (implementation of Committee of Financial Sector Stability)

Reduce government bond issuance in 2008 and 2009

Redefine emergency funding in State Budget Law 2009 based on emergency conditions for
anticipating of global crisis impact

Arrange standby financing facilities to support counter-cyclical measures and fiscal stimulus
package in 2009 Budget
Selected Actions Taken by the Government
High awareness and proactive management of the impact of the global financial crisis on Indonesia

Conclusions is,

Indonesia is in a god position to improve its standing in the global
economy.

Under the current global economic crisis Indonesia has a possibility to
be able to grow moderately.

Indonesia has to increase the contribution of export and FDI o growth.

Banking sector is in a good condition and should be able to play higher
role to support growth.

The challenge is to improve quality aspects of the economy so that it
could grow in a sustainable way.

As the largest economy in ASEAN, Indonesia can play a leading role in
the effort to create ASEAN economic community and develop
cooperation at the level of ASEAN+3 and ASEAN+6. This should not
allowed to set back even under the global economic crisis.

As the third largest democratic country, Indonesia should be able to
evolve as a reliable democratic country that able to deliver hiher level of
welfare to the people.


Summary of 2009 Budget

Macroeconomic assumptions used in the 2009 budget are optimistic despite having factored
in any potential downside risk

The budget assumes moderate tax revenue growth of 20% in 2009

Currently implementing the Income Tax Law, which will lower tariffs, increase minimum
thresholds and provide tax incentives to certain sectors and regions, in order to reduce costs
of businesses

Continue to improve transparency for the calculation of cost recovery and revenue from the
oil and gas sector

Priority is given to poverty alleviation and education (BLT, PKH, PMPH and BOS), health care
and infrastructure (road, bridge, airport and electricity) programs

Use all fiscal, trade and industry instruments to support the real sector, boost investment
climate and increase competitiveness of Indonesia’s economy

Increase fiscal contingency fund to fund the budget deficit

Shift financing sources from marketable securities to standby financing facilities from
bilateral and multilateral institutions

Arrange standby financing facilities to support counter-cyclical measures and fiscal stimulus
package in 2009 budget

Prepare crisis protocol through implementation of the Committee of Financial Sector Stability

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Microsoft Corporation reduction employees

Computer software company's world number one, Microsoft Corporation, is weighing a reduction in employees to perform in various divisions. The announcement about the final decision can be most quickly will be announced next weekend. Likewise daily said The Wall Street Journal on Wednesday, 14 January 2009.

Action termination of employment (PHK) employees is a rare occurrence for Microsoft. "However, the plan can still be changed, and Microsoft can still find other ways to rein in spending," wrote The Wall Street Journal quoted a source. It is reported, the number of employees who will be PHK approximately 15,000 people. Rumor also has merebak dismissal in the last few weekends.

Executive director of Microsoft, Steve Ballmer, last week rejected the rumor to the reduction of employee, although he confessed that the poor economic conditions force companies to think seriously about trimming the cost of action. Firing employees, Ballmer said, not the norm for a company headquartered in Washington, the United States.

The likelihood, according to Microsoft that the final report in June ago employs 91,000 employees, announced the decision when they submit financial reports on the upcoming January 22.

Microsoft has said that the weak economic conditions, the company can not bolster growth in the number of employees of two of the last fiscal year reached 15 percent at most.

Sales of the computer that also impacted on the decline Microsoft. Gartner research company, yesterday reported that PC sales in many countries only grow as much as 1.1 percent in the fourth quarter 2008 from a year ago. This is the worst growth rate in the computer industry since 2002.

Luxury cars defy down market

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If you have one million dollars US to spend on a car, you may be one of the "happy few" to be offered a chance to buy one of only 75 new Mercedes SLR "Stirling Moss."
Unrestrained luxury cars are selling well, despite doldrums in the global auto industry.
The nouveaux riches, recent lottery winners and the like, can thus only dream of getting in the driver's seat.

In a market in dramatic decline in the United States and throughout the world, high-end brands such as Bentley, Maserati, Lamborghini, Jaguar, Maybach and Rolls Royce are posting strong sales, up eight percent to 50 percent notably in emerging markets such as Eastern Europe.

Jaguar, now owned by India's Tata, sold 65,000 cars priced between 30,000 dollars and 60,000 dollars in 2008, up eight percent over the previous year, according to its global marketing director CJ O'Donnell.

"Of course everybody feels the crisis", but Jaguar does not have to sell millions of cars to make a profit, he explained.

Britain remains Jaguar's primary market, but the United States is catching up.

On Sunday, Jaguar executive director Michael Drisco unveiled the company's new XF, which can reach speeds of up to 362 kilometers (225 miles) per hour, "which really pleases women." He says he is "pretty optimistic for the future."

It's a niche market and for the most exclusive brands, only a few hundred vehicles are produced.

"We sold 2,430 Lamborghini in 2008, up six percent, and we have 122 dealers, 50 more than in 2007," chief executive Stefan Winkelmann said at the launch of its Gallardo LP 560 at the Detroit auto show.

"Lamborghini is style, Lamborghini is lifestyle," he said, adding that the carmaker more and more customizes its vehicles in response to clients' unique demands. "We individualize the cars."

These coveted Italian luxury sports cars sell for 200,000 dollars, sales director Enrico Maffeo told AFP.

The US market was its top buyer with 950 vehicles sold in 2007, but sales fell slightly to 750 Lamborghinis last year, while European sales topped 1,000, he said.

Who rides in Lamborghinis in the United States? Hollywood actors, a few rappers, and top lawyers, mostly in New York, California and Florida.

"Elsewhere, we sell mostly in Italy, Germany, Britain and Switzerland. In Russia, the roads and the climate are harsh, but we still sold a dozen vehicles there," Maffeo said.

"We cannot say we are unaffected by global prices," commented Lamborghini's Winkelmann. "But we are not changing strategy. We have a new product each year."

Even if the car maker maintains its distinctive Italian style, in its designs as in its marketing, Lamborghini is nevertheless since 1998 part of Germany's Audi, which is in turn owned by the Volkswagen Group.

"The synergies between them are indispensable," said Enrico Maffeo. "That's something the US automakers never quite got a handle on."

Turn on oil prices, Wall Street Stocks Down

Investors await company reports quarterly revenues in the midst of economic crisis 

All share price index in the Wall Street exchange was closed out at the end of trading Monday afternoon New York time, January 12, 2009 (Tuesday morning WIT). Section, the investors refrain from the receipt of quarterly reports which will show the impact of bad economic crisis on the companies.

Index Dow Jones industrial stocks fell for the fourth trading session Monday because of anjloknya triggered by oil prices and concerns over growth in the financial sector. So far in 2009, Dow index down 3.5 percent.

Dow index fell 125.21 points (1.46 percent) to 8473.97 after the level was down 178 points at most. Experienced a decrease in the Dow yesterday was the lowest closing for the Dow since 24 December 2008.

Index than the Dow stocks are also down. Index Standard & Poor 500 fell 20.09 points (2.26 percent) to 870.26 positions. While the Nasdaq composite index down 32.80 points (2.09 percent) to 1538.79 level. Stock index companies small Russell 2000 closed down 12.50 points (2.60 percent) to 468.80 positions.

On the exchange market, the value of the currency against the dollar currencies other menguat. Meanwhile, for the first time in the last one month, gold prices fell below U.S. $ 820 per oz. Type of crude oil price of light sweet anjlok U.S. $ 3.24 to the position of U.S. $ 37.59 per barrel on the New York Mercantile Exchange.

Foreign exchange in the United States, FTSE 100 index (UK) fell 0.50 percent. Dax Index (Germany) down 1.34 percent, and the CAC-40 index (France) lost 1.62 percent. Hang Seng Index (Hong Kong) down 2.83 percent. Japanese stock exchanges closed for days libu

Suspensi Sarijaya Customer calm

Electrical current global crisis could trigger the alleged misuse of client funds

Decision-making authority to stop the capital markets trading activities while PT Sarijaya Permana Sekuritas quite appropriate. Efforts to assess the market that can calm clients.

"That there is evidence that the action is done," said the capital market, Mirza Adityaswara, in Jakarta on Tuesday 6 January 2009.

According to him, when problems Sarijaya left, it can trigger chaos. "If there is action to Sarijaya, there is a step (of authority)," he said.

Meanwhile, the capital market legal observer, said Indra SAFITRI, fund management system and customer mechanism. When customers use the funds to effect the transaction is done without permission, it can be considered criminal.

According to him, electrical current global financial crisis can trigger the alleged misuse of funds customers. Moreover, stock prices in Indonesia Stock Exchange (BEI) has decreased the last few times.

"Conditions that could trigger a decrease in assets, so that the authority is also authorized to prop fog," he said to VIVAnews.

He fears many will be a similar case occurred on I-2009 semester. "Pemicunya can because the electrical current global crisis," he said.

For that, he hopes, the effect of increasing transparency. Meanwhile, customers are required to ensure the management of the funds is done correctly according to existing rules.

"Each company must consider the effect kelolaannya funds," he said.