The Finance Department was finally able to announce the finding of unreported bank accounts of the Supreme Audit Agency's (BPK)or unclassified version in the 2006 Central Government's Financial Statement (LKPP). The number of the unclassifed accounts is 2,396 with Rp2.7 trillion value. The total of unauthorized accounts that have been found since 2004 is 5,591 and are worth Rp20 trillion. Labels: Economy, Indonesia, Internet News, Money, Politics
According to the Director General of the Treasury of the Finance Department, Herry Purnomo, the department still needs to ask clarification from 35 ministries or state institutions where the accounts were found. “The team was only given six months to bring order to the unreported accounts,” said Herry at his office, Friday (15/6).
The accounts found in 2006 LKPP comprised demand deposit of 2,141 accounts in general banks that are worth Rp2.5 trillion in the form of time-deposits and 260 accounts worth Rp144,316,88 billion. “Those accounts will be classified as state revenues,” he said.
In addition to arranging the unreported accounts in 2006 LKPP, the team will also ask for clarification of the previous unauthorized accounts totaling 3,195 at 35 ministries or state institutions that are worth Rp17.6 trillion. “Whether there is duplication or they have their own divisions,” he said.
In order to arrange the accounts, Herry said the Finance Minister has issued two Finance Minister Regulations. First, No. 57/PMK.05/2007 dated June 13, 2007 on the Management of the Bank Accounts of the State Ministries/Institutions/Offices/Working Units. The second, No. 58/PMK.05/2007 dated June 13 on the Arrangements of Government Bank Accounts for State Ministries/Institutions. “And she issued a Finance Minister Instruction for the Finance Department to regulate the unreported accounts within three month time,” he said.
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At a meeting of the Bank Indonesia (BI) Governors Board on Thursday (7/6), it was decided to lower the BI rate once again, this time by 25 base points to 8.50 percent from the previous 8.75 percent. Labels: Economy, Indonesia, Internet News, Money
Budi Mulya, BI's Director of Strategic Planning and Public Relations, said that the lowering of the BI rate was based on consideration of the prospects of this year's inflation target of six plus-minus one percent and next year's five plus-minus one percent.
“The decrease was also following our in depth study of the latest economic and financial developments,” he said in Jakarta.
He went on to say that in general, the economy will still continue with a more balanced pattern.
This is reflected in the economic growth target of 5.7 percent, higher than BI's initial projection.
In addition, the Rupiah exchange rate in May also strengthened from an average Rp9.093 against the US dollar in April to Rp8.838 against the US dollar in May, 2007.
“May's inflation was also still maintained.”
Core inflation was recorded at 5.62 percent year on year, the lowest rate in the last six years.
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The government will monitor the development of cooking oil price before increasing the export duty on crude palm oil (CPO) export duty. Labels: Economy, Internet News
CPO and cooking oil producers are regarded as not yet having been optimum in terms of market operations.
“If (the ideal cooking oil price) isn't reached, we'll certainly implement (the export duty increase0” said Boediono, Coordinating Minister for the Economy, in Jakarta yesterday (5/6).
Earlier, the government had threatened that it would the raise export duty, which has been 1.5 percent up until now.
This is stated in an agreement between the government and producers that if by June 1, 2007, cooking oil prices have not reached an ideal price of between Rp6,500 and Rp6,800 per kilogram.
However, the price stabilization program, which has been carried out since March, has not yet been successful in decreasing cooking oil prices.
Currently, cooking oil prices are still between Rp8,000 and Rp9,000 per kilogram.
The government planned to implement the domestic market obligation (DMO) policy if cooking oil prices remain high.
According to Boediono, CPO producers are not yet optimum in carrying out market operations (procuring the product in markets).
This is seen from the high CPO export volume, uncontrolled domestic supply and high cooking oil prices.
“Due to increasing CPO prices abroad, we want the players in the business to hold more effective market operations,” he said.
CPO producers circle stated they are ready to procure 150,000 tons for cooking oil price stabilization program this June.
“We're ready to procure 150,000 tons. All producers are committed that the price stabilization program in June will lower prices,” said Akmaludin Hasibuan, General Chairman of the Indonesian Palm Oil Businesspeople Association, when contacted in Jakarta yesterday.
Benny Wahyudi, Director General of Agriculture and Chemical at the Industry Department, said the government will increase export duty and implement DMO policy in July, after the price stabilization program evaluation in June.
Unsuccessful price stabilization program in May was because a lot of suppliers didn't fulfill the procurement commitment,” he said.
Out of the commitment to procure 97,000 tons of CPO, around 35,000 tons had not been realized.
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The government will cut the time it takes to issue a business license to 30 days from the previous 197 days. Labels: Economy, Internet News
This decision is one of the policies included in a new economic package that will be launched in a few days’ time.
This package is a development of the economic package that was issued last year.
Boediono, Coordinating Minister for the Economy, explained there are four important points in the package.
These are: investment climate improvement, infrastructure development, financial sector repair and small- and medium-scale enterprise (SME) development.
“In terms of investment climate, there is a reduction in the time involved in processing business licenses,” said Boediono during the Investor Forum II in Jakarta yesterday (30/5).
The Gadjah Mada University (UGM) Economy Faculty Professor emphasized that this economic package was better compared to the previous one, especially in terms of regulations, license processing and taxes.
Financial and non-bank sectors, such as capital market and insurance, will also be improved.
Unlike the previous package, the new one will also discuss SMEs.
M. Ikhsan, a special member of staff of the Coordinating Minister for the Economy, said that previously SME development was discussed in separate package.
However, this time the government will discuss it in one package.
M. S. Hidayat, Head of the Indonesian Chamber of Trade and Industry (Kadin), said he hoped that the new economic package would be more concrete and could be realistically implemented.
“If the government has issued policies, it must be ready to realize them,” Hidayat when contacted by Tempo yesterday.
He also he hoped that the economic package was not like the previous one, which was only a concept.
On the occasion, Boediono also focused on the flow of funds in the capital market.
According to him, flow of funds in the capital market must not always be separated from the real sector.
He cited the State Debt Securities (SUN) and Bank Indonesia Certificate (SBI) trade transactions.
Funds withdrawn by the government from these bonds trades were used for infrastructure development.
Boediono also said there was no need to worry about the capital market's fund flow reversal trend.
The reason for this was because Indonesia's current economic system was already more prepared compared to the time of the economic crisis in 1997.
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