indonesianews

Bermuda Association explains reinsurance risk spreading role

2008-09-15T19:45:00.000-07:00

Syamsul Sunduseng on Report
"The global reinsurance market plays an integral role in spreading US
hurricane risk around the world," said a bulletin from the Association of
Bermuda Insurers and Reinsurers (ABIR). "Without it, the risk would be
concentrated in a single state (or geographic region) or in the US with
the result being higher insurance costs for US consumers."

The ABIR noted that "the reinsurers of US hurricane risk are predominantly
located outside of the United States with a very large number located in
Bermuda." Many of them are ABIR members.

ABIR president Brad Kading explained the following:

1. Bermuda's insurers and reinsurers understand property catastrophes
including hurricanes. We understand the tragedy they create for families
who lose loved ones or lose their homes. Hurricane Ike has the potential
to cause a tremendous loss of life. ABIR member employees themselves are
exposed to hurricane risk in Bermuda and they are familiar with what
families and businesses need to do to protect themselves against these
storms and to recover from those losses. We offer our heartfelt sympathy
to those affected so severely by Hurricane Ike in Texas and in the
Caribbean prior to the US landfall.

2. Bermuda's insurers provide an estimated 66 percent of the reinsurance
purchased by the Texas Windstorm Insurance Association (TWIA). The TWIA
protects the property most exposed to hurricane damage in Texas.

3. Based on an analysis of reinsurance premium from insurers most exposed
to hurricane risk in Texas, Bermuda's insurers will provide an estimated
45 percent of the reinsurance claims that will eventually be paid to
insurers for damage caused by Hurricane Ike. It is impossible to
accurately forecast the total insured losses for Ike at this time. All
loss estimates at this time are purely hypothetical. However, the more
severe Ike's damage is, the more likely it will be that reinsurers pay a
larger share of the actual insured hurricane damage. For example, if Ike's
insured losses are $10 Billion, insurers will primarily pay for these
costs (with exceptions including the TWIA payment noted above). If
Hurricane Ike's insured losses are $25 billion, reinsurers may pay $10 to
$15 billion of the eventual Hurricane claims. Based on these estimates
Bermuda reinsurers' share of these losses may then be $4 to $7 billion.

4. In the period from 2001 to 2008, Bermuda insurers have paid nearly $25
billion in insured and reinsured US property catastrophe losses. These
reinsurers have remained financially strong despite these losses and these
reinsurers have remained committed, and indeed have expanded, their
capabilities to provide protection to US insurers and their property
insurance clients. These reinsurers in turn in 2006-2008 continued to
provide protection to support US consumers and expanded their capacity
(either through their own underwriting capacity or via capital markets
resources) to provide even more protection to US consumers.

5. It is estimated that following Hurricane Katrina, Bermuda reinsurers
paid out enough to rebuild 45,000 homes in Louisiana and 24,000 homes in
Mississippi.

6. The lessons of the last decade indicate that Bermuda's reinsurers, and
global reinsurers generally, are: financially strong, capable of absorbing
enormous losses, capable of raising capital when needed and committed to
continuing to provide US property insurance and reinsurance protection.

7. Bermuda's reinsurers are well regulated by the Bermuda Monetary
Authority and have very high financial strength ratings and are well
capitalized to absorb these losses. Losses such as these are expected by
reinsurers. Reinsurers will reimburse their US insurance company clients
promptly as claims are submitted. Reinsurers are financially strong enough
to pay all these claims and more.

8. ABIR has 23 member insurance companies, all based in Bermuda. 14 of
these companies have US subsidiary insurance companies. These US
subsidiaries will also write US insurance for hurricane risk. Thus many
ABIR members will be paying claims both from their US subsidiaries and
their Bermuda parent corporations.

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Insurance targets cars and marine cargo premium

2008-08-18T18:15:00.000-07:00

JAKARTA: The slight premium generated and the tariff war on property
business have made loss insurance maximize the cars and marine cargo
insurance business.

Vice President Technical Division PT Asuransi Central Asia (ACA) Debbie
Wijaya said the company did not do any special effort to minimize fire
insurance business and make it balance by expanding car insurance.

Fire insurance as the largest premium contributor has been shifted to car
insurance.

Fire insurance in 2007 hit IDR397 billion or rose from IDR320 billion in
2006. But car insurance has higher growth as from IDR314 billion in 2006
into IDR420 billion.

"So the fire insurance portion to the total premium dropped from 41
percent into 39 percent or less than that of car insurance," she said to
Bisnis this week.

The premium has less in number due to the fact that many insured that does
not have any incident and propose claim will call for insurance discount
this year.

"On the renewal, they will have window shopping so as to move if they get
lower price offer. Whereas, the insured should have been careful to see
the insurance company service quality, not simply the price," she added.

The tough competition in insurance industry has become one of the major
factors causing the less premium rate. Meanwhile, the car premium rate
remains standard and the issuance of PMK No. 74/2007 on Car Insurance has
limited the abnormal acquisition cost.

"If we have no support from the government on the property business
regulation as that of in car, we start seeing other more profitable
business," she said.

In addition to car insurance, the other major business line which might
tap premium is marine cargo and individual product such as trip insurance.

PT Asuransi Binagriya Upakara minimizes the fire insurance for corporate
and move to retail insurance including car insurance.

"The competition is so tough and property price is no longer realistic,"
said President Director of Binagriya Upakara Kapler A. Marpaung.

To realize the plan, Binagriya seeks cooperation with four multifinance
companies to boost up car insurance performance so as to hit the premium
target of IDR17 billion.

Separately, Operation General Manager PT Asuransi Tri Pakarta Yulius Patty
said the company relies on fire insurance with its 50 percent contribution
to the total of premium.

The company has so far marketed fire insurance through banks so that it
should provide the products required by bank. Besides, fire insurance risk
is less than the car insurance despite the less premium.

"Fire insurance uses per mil, car insurance uses percent. So, the
insurance price of one car might equal to 10 property insurance, but with
less risk than the mobile risk as car," Yulius said.

Lecturer with the Trisakti's School of Management Munawar Kasan said the
tariff war on property insurance gets worse.

"The insurance premium is like cellular tariff with 0,0000% calculation
due to their fond of premium. The inflation makes all prices soar but fire
insurance premium," he added.

The insured commonly called for premium cut down on the renewal with
abnormal demand of 30-40 percent.

"In fact, insurance could provide profit commission or no claim bonus with
normal variable as included in the policy."

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Poligami On Party

2008-08-12T19:06:00.000-07:00

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Four Cell Phone Principals Delay Investments

2008-08-12T18:20:00.000-07:00

At least four cell phone investors from Europe, the US, and Asia, threaten
to diver their investment plan worth a total of US$550 million from
Indonesia to Vietnam.

They reason the government so far has yet been able to provide favorable
regulations and proper infrastructures.

Chairperson of the Association of Indonesian Cellular Importers (AISI) Eko
Nilam viewed Indonesia had no clear and strict regulations on cell phone
import mechanism, creating a fertile soil for illegal products to prevail
in the market.

Over the past few years, he continued, the government had failed to take
strict actions against cell phone smuggling and to create favorable
regulations to attract new investments. As a result, he added, unhealthy
competition in the national cell phone market kept going on.

"The four principals also object to the product guarantee system applied
in Indonesia. If Indonesia doesnt deal with the problem, those four
investors may cancel their plans," told Eko yesterday.

Eko explained Motorola (one of the largest US cell phone makers) had
relocated their investment plan to Vietnam. Motorola previously planned to
make US$250 million investment in Indonesia to produce up to 3.5 million
units of cellphones per annum.

"We have twice met with the management of Motorola, but they finally
decided to choose Vietnam since the Indonesian government is unable to
give a clear solution."

According to Eko, two Asian investors and one European Union investor also
planned to build production facilities in Indonesia. The three investors,
he exposed, would make US$100 million investment each and their total
production capacity would reach 2 million units per annum. "I cannot yet
reveal the names of the three companies, but they are really interested in
realizing their investments," he said.

The three principals, he inserted, had even bought 6.5 hectares of area in
an integrated economic development zone in West Java.

General importers

Director of Telematics Industry at the Department of Industry Ramon Bangun
disclosed the Department of Industry had urged the Department of Trade to
restrict the number of cell phone general importers in Indonesia.

With such a restriction, he noted, Indonesia would be able to deal with
illegal product circulation to create a healthy business competition
needed to lure foreign investors to make Indonesia their cell phone
production hubs. "The decision is in the hands of the Department of
Trade," told Ramon.

The AISI estimated there would be 23 million units of imported cell phones
worth US$3 billion entering Indonesia this year. Until the first semester
of this year, he added, only 32%-35% of the import or around US$800
million had been realized. "The rest will follow in the second semester."

According to Ramon, a South Korean cell company was also probing for a
possibility to develop cell phone production facilities in Indonesia.

"The company is a South Korean research institute that has been supplying
product designs to a Chinese cell phone maker. Now they want to build
their own plant and brand in Indonesia."

According to the plan, he said, the investor would develop those
production facilities by the end of the year. Once their assembling plant
had started production, they would continue building a component
production plant.

2008-08-11T17:55:00.000-07:00

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Stanchart & Mizuho provide US$104 million fund for energy project

2008-08-05T17:49:00.000-07:00

Standard Chartered Bank (Stanchart) dan Mizuho Corporate Bank act as bank
leaders to the US$104 million syndication loan to fund the power plant and
gas field project owned by the Energy World Corporation (EWC) in Sengkang,
South Sulawesi.

Head of Project Finance, Asia Stanchart, Conor McCoole said this is the
first itme after a decade an international bank syndication funds private
power plant project without any protection in Indonesia.

"Despite the challenge of the existing loan market, the qualified projects
could evidently get long term fund facility such as in Sengkang," he said
on press release to Bisnis yesterday.

The funding activities include the loan transfer process from Stanchart
for the ongoing Sengkang power plant and gas field project with 135 MW
capacity.

Besides, the cooperation is deemed the new funding for additional 60 MW
capacity project as the next construction phase which will finish by 2008.

The results of the project will be soled to the State-owned Electricity
Company (PLN) through the power purchase agreement (PPA) in the long run.

The seven year funding is signed on October 2007 with the due date in
October 2013. The funding is fully syndicated in mid 2008.

Stanchart and Mizuho acted as the mandated lead arrangers and KBC Bank NV
Singapore branch office, Natixis and Nordkap Bank AG acted as the lead
arrangers.

All funding is given without any political risk insurance protection
despite the fact that the project got support from the Indonesian
government for the PPA.

Stewart Elliott, Managing Director EWC, said the Sengkang power plant
project is deemed the first gas energy project in Indonesia

"We are proud of cooperating with the five international banks in this
project and appreciate the given trust to EWC. The supports given by the
five banks here reflect their trust both to the project and PLN as our
user within the past 10 years."

In this project, Stanchart acted as EWC financial advisor. And, Baker
McKenzie law firm acted as the legal advisor for the debtor and Lovells as
the sponsor advisor.

The Australian based company through its subsidiary company, PT Energi
Equity, will produce liquefied natural gas (LNG) from the gas field in
quarter II/2009 with US$1 billion investment.

From SEngkang field, the company could possibly produce 5 million tons of
LNG per year. So, EWC plans to build four refinery units with 500,000 tons
capacity per annum each.

Mau ta' taya di foto

2008-07-14T19:40:00.000-07:00

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Hotel Sahid Targets to Operate 50 Hotels

2008-07-14T19:35:00.000-07:00

Publicly listed PT Hotel Sahid Jaya Internasional Tbk, which is under the
Sahid Group, will gradually add 31 new hotels nationwide by 2013.

The plan will require IDR2 trillion in investment fund and will increase
the number of hotels under the wing of Hotel Sahid to 50 hotels.

Haryadi Budisantoso Gitosardjono, Head of Business Division at the Sahid
Group, revealed Hotel Sahid so far had operated 19 units of three-star to
five-star hotels nationwide.

"We target to add 31 new hotels by 2013 nationwide. We may even develop
hotels overseas," he informed Bisnis on the sidelines of the anniversary
of the Business Division of the Sahid Group in Solo on Tuesday night.

The additional new hotels, he continued, would increase the number of
rooms operated by Hotel Sahid to 12,000 rooms by 2013.

Haryadi added some of 19 hotels operating under Hotel Sahid flag at the
moment would be renovated and upgraded to five-star hotels.

According to him, the development of hotel business units also aimed to
support tourism and cultural promotional activities made by the
government.

In addition, Haryadi disclosed the group's property sector, which had its
separate market segment, would also be improved, including by a
possibility of building apartments in Yogyakarta and Surabaya.

"Frankly, we at first wanted to operate in Solo. However, due to the
crowded competition there, we are eyeing other regions, probably
Yogyakarta and Surabaya," he told.

Despite its impression to sell modern-class property products, the Sahid
Group, he guaranteed, would be committed to preserving buildings with
strong historic value, such as Kusuma Sahid Hotel Solo.

"Kusuma Sahid Hotel has a long legacy and heritage. Despite possible
changes, we will be committed to preserving the originality," he said.

Japan: More Favouring Motorised Bicycles Over Cars

2008-07-03T01:11:00.000-07:00

AIR, Vol VI Issue 27. Japanese companies are increasingly adopting
power-assisted bicycles, instead of cars, for business use due to rising
gasoline prices, reports the Yomiuri Shimbun.

At the same time, growing environmental awareness and measures to help
employees with weight problems are likely too to boost demand for the
bicycles, says the newspaper. The government introduced guidelines in
April requiring corporate health insurance associations and other
organisations to conduct medical checkups and to set up health guidance
systems to help prevent obesity.

According to the Bicycle Association, 282,000 power-assisted bikes were
sold in 2007, a 10% increase from the previous year.

Panasonic Cycle Technology Co in Kashiwara, Osaka Prefecture, said the use
of power-assisted bicycles by businesses had grown about 2.7-fold in the
year ended 31 March 2007, from the 12 months ended 31 March 2003. The firm
expects sales of the bicycles to increase by 80% in the current year.

Market Anticipates Interest Rate

2008-05-27T03:30:00.000-07:00

The government's policy to raise fuel prices by an average of 28.7% last
weekend will be responded by the market by selectively buying blue-chip
stocks to anticipate inflation and BI Rate.

Investors' prudent stance is estimated to make the Composite Stock Index
(IHSG) on the Indonesia Stock Exchange (BEJ) hover limitedly at 2,500
throughout this week.

Head of Research at PT Paramitra Alfa Sekuritas Pardomuan Sihombing
revealed market players were still worried about the prospect of
inflation, especially the impact on the real sector and on
social-political stability.

"On the other hand, global crude oil prices are still likely to increase,
which will boost the performances of public mining and plantation
companies," he informed.

Global crude oil price hit a new record high of US$135 per barrel last
week in the wake of weaker US dollar, security threat in Nigeria, and
speculation over tycoon in the US that would lead to supply shortage.

Pardomuan forecasted sentiment for inflation would put pressures on the
index, which would move between 2,200 and 2,513. "Next week, the index
will be under pressures from several factors."

He argued the government had to be able to secure short-term foreign funds
in the market by upping interest rate.

The Central Bank (BI) plans to organize a Board of Governors' Meeting on
June 5.

The market estimates inflation will reach a two-digit level of 12%,
triggering a necessity to raise BI rate.

"The market speculates there will be rate hike, albeit slightly, to keep
the pace with inflation. If BI retains interest rate, the market will give
negative responses."

Maintain spread

BI Rate hike was necessary to keep the negative real interest rate spread
(the spread between BI Rate and inflation) attractive.

Although the spread in Indonesia was still attractive compared to the
spreads in other countries, BI still needed to provide a premium capital
gain, he added

"This is important to prevent the risk of capital flight," told Pardomuan.

On the other hand, the central bank had to use its authority to maintain
the rupiah exchange rate since weaker currency would only create negative
sentiments toward the bourse.

20 Banks awarded as the most efficient

2008-05-25T18:08:00.000-07:00

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Bisnis Indonesia

Twenty banks are selected to be the most efficient in 11 categories,
mostly in terms of assets, including three state-owned banks Bank Mandiri,
Bank Negara Indonesia (BNI), and Bank Rakyat Indonesia (BRI) in the Bisnis
Indonesia Banking Efficiency Award 2008.

As to Bisnis Indonesia economist Rofikoh Rokhim, the asset category is
aimed to provide fair assessment.

"A bank with bigger asset cannot be compared to the one with smaller
asset, except for the regional development bank (BPD), syaria bank,
foreign bank, joint venture bank and state-owned bank," he said over the
sidelines of the event here.

The state-owned bank nominated Bank Mandiri, BNI, and BRI. Bank Syariah
Mandiri won over the syaria bank category. Bank Niaga and Bank Panin are
awarded as banks with more than IDR50 trillion worth assets.

The event here was either attended by Ingo Walter, the merger and
acquisition expert from the University of New York, who delivered his
speech on Value Creation and Value Destruction in Banking and Finance. The
Central Bank of Indonesia (BI) Deputy Governor, Budi Mulya, closed the
event after presenting his paper on Bank Efficiency and Merger/Acquisition
in terms of Banking Consolidation.

Rofikoh added in general the assessment of bank efficiency is done by
comparing the operational load and operational revenue (BOPO). The ratio
is deemed the traditional approach to measure the efficiency of bank cost.

"However, measuring efficiency using BOPO sometimes has fallen short of
providing the real picture of bank efficiency condition. The result is
hard to be interpreted."

As to Rofikoh, minimizing the excessive cost to minimize the BOPO ration
might give negative influence to the bank output, including the
downgrading bank product quality.

Growth of loan

Budi Mulya said up to March the credit remains growing by28.1 percent
(y-o-y) with decreasing gross non performing loan into 4.33 percent, the
guaranteed bank asset through the CAR ratio of 18.6 percent.

"The financial system remains well maintained amidst the various
pressures. Internally, the source of pressures includes inflation threat,
fiscal sustainability, and the soaring staple food price," he said.

Externally, the source of pressures comes from the soaring global oil
price and commodity price and volatile global market condition following
the sub prime mortgage crisis.

Feng Shui Luck - Feng Shui Can Help You Create Good Luck - Feng Shui Tips

2008-05-24T10:05:00.001-07:00

Feng Shui seems to have as many enthusiasts and followers as it does have people who are still very skeptic about feng shui uses. Arguing about why feng shui helps some people and it doesn't help others is like arguing why some people get healed faster than the others, or why some people do not get healed. There are many levels that are taken into consideration during the feng shui analysis, and from a feng shui viewpoint, there are no identical houses, just like there are no two identical humans.

Even houses with the same floor plans will have different feng shui because of their different location, earth energy, light patterns, etc, etc. The same with humans, even identical twins often have different characters and emotional traits; and the infinite number of combinations between humans and the spaces they inhabit makes it for a wide variety of feng shui case studies. Some people will apply the feng shui guidelines and will see almost immediate results, while others might still wait for their luck to be improved with feng shui.

How big is the power of feng shui to change your luck? And how long do you have to wait to see the results? Being neither religion nor superstition, here is what feng shui wisdom says about changing human luck.

2008-05-24T09:36:00.000-07:00

The Great Party Contest in Runtono Restaurant because had many "lai bin" from member of Tionghoa Course. The two boys stand up party as audience and Labour.
And then, Well, we're looking for someone to create a bridge back to China for the Chinese diaspora. The site should inform readers about contemporary China, including the arts, pop culture and the nation’s rapid development. It should also help those growing up away from China learn about the roots of the culture, such as family life, mythology and religion. Content should primarily provide deep background and reference on Chinese culture and current events. Although the site is not primarily a history site, articles on China’s rich past will naturally be included. Since news services operating within China deal with censorship, there is some call to cover major news and put it in context.

Financial Services Asked to Finance Machineries for SMEs

2008-03-10T19:51:00.000-07:00

The Capital Market and Financial Institution Supervisory Board
(Bapepam-LK) has asked financial services to provide financing to small
and medium enterprises (SMEs) to buy production machineries.

Bapepam LK Bureau Chief of Financial Service and Guarantee, Freddy R
Saragih, said so far financial services have been stuck to the traditional
products of leasing, consumer financing, factoring and credit card. They
have not touched productive sector of SME.

"They have to develop financing for production equipments for SME. It can
be part of consumer financing," he said in Jakarta yesterday.

He said SME sector is suitable for financial services rather than for
banks. He said IDR5 million - IDR20 million financing is more suitable for
financial services.

"If they can finance two wheelers, why can't they provide financing for
SME? Financial services will get the benefit of broader market and SMEs
will get access to investment goods for their production."

Freddy said he has visited ten venture capitals. They have provided
financing for productive equipments. He hopes financial services will do
the same.

"There should not be new regulation as it can be part of consumer
financing so that it is not against the law."

The Chairman of the Association of Indonesian Financial Services (APPI)
Wiwie Kurnia said that the association welcomes the idea of Bapepam LK.

He said so far the financing to SME is only on means of transportation.

"Actually it is okay to finance production tools for SME, but it must be
supported by the secure financial sources. So far joint financing has been
for means of transportation."

He said banks have to support the plan.

If banks do not provide any money, financial services will not be able to
provide any financing for the productive part of SMEs.

Japan: Aioi's Ratings Unchanged Despite Subprime Losses

2008-03-05T20:48:00.000-08:00

AIR, Vol VI Issue 10. S&P has maintained Aioi Insurance Co Ltd's 'A+'
financial strength and long-term counterparty credit ratings despite the
company's recent statement that it will face additional subprime-related
losses and consequent net loss for 2007.

The Japanese non-life insurer warned earlier that it was expecting to post
a group net loss of 4 billion yen (US$38.6 million) for the year to
end-March, as well as combined losses of about 92 billion yen on its
exposure to subprime and securitised assets.

S&P says that Aioi is highly likely to maintain a capital base
commensurate with the 'A+' rating, given its company's strong
capitalisation.

Kajima to step up urban development business

2008-02-26T20:35:00.000-08:00

TIN, Feb. 25. Kajima Corp. plans to expand its urban development project
in Jakarta, starting with the construction of a large office building,
Nikkei reported Tuesday (19/2/08). The general contractor completed a
large office building on Monday, and already plans to begin constructing a
similar-sized office building late this year.
The 4 billion yen ($37.08 million) building, which is expected to be
completed in 2010, is to have 28 above-ground floors and a total floor
space of 62,000 sq. meters.
As soon as it receives government approval, Kajima also plans to build a
hotel and a shopping mall in Jakarta.
"We aim to bolster our urban development business in Indonesia further by
planning construction of new office buildings and hotels," Kajima
president Mitsuyoshi Nakamura said.

WOM Finance Seeks IDR1 Trillion Loans

2008-02-19T00:45:00.000-08:00

Bisnis Indonesia

PT Wahana Ottomitra Multiartha (WOM) Finance Tbk is seeking IDR1 trillion
loans with the tenor of three years.

The President Director of WOM Finance Suwandi Wiratno said the money is
needed to support the expansion plan of IDR5.5 trillion compared with
IDR4.82 trillion last year.

He said that 25% of lending will be from banks other than Bank
Internasional Indonesia (BII), and the rest 75% will be from BII.

"We will expand the total loan of IDR5.5 trillion to finance 520,000 units
of two-wheelers this year compared with 476,000 units last year.

He said this year the company will seek IDR1 trillion in loan with the
tenor of three years. "Actually there is option to sell bonds, but the
market is unfavorable."

He said the liquidity of the company is sound so that last year it has
refinance IDR750 billion of the bonds.

Suwandi said WOM Finance has announced the net loss of IDR241 billion due
to the provision of IDR712 billion.

He said that the loss was the effect of its compliance to Bank Indonesia's
regulation (PBI) No.8/6/2006 on Consolidated Risk Management of Bank That
Have Subsidiaries.

"The effect is temporary so that our balance sheet will go blue this year.
We will book net profit this year."

If the company did not apply the system, it should have posted the net
profit of more than IDR100 billion."

WOM Finance is a financing arm of BII (50.03%). The other shares of WOM
Finance belong to International Finance Corporation (11.97%), DBS Nominees
Ltd (5%) and the public (33%). The company has been focusing on
two-wheelers from Japan.

Motorcycle Market Soars by 36.4%

2008-02-11T19:24:00.000-08:00

Honda & Yamaha Keep Competing Tightly
The motorcycle sales volume in the domestic market in January 2008 soared
by 36.4% to 473,060 units from 346,669 units in January 2007.

The Association of Indonesian Motorcycle Industries (AISI) revealed the
sales volume in January was the highest in the past five years.

"I hope the condition will be a good start for the national motorcycle
industry this year. This is a very remarkable achievement," said
Chairperson of AISI Gunadi Sindhuwinata yesterday.

According to him, usually motorcycle sales volume in January was lower
than the sales volume in the previous months since after the Christmas and
New Year's holiday consumers chose to refrain themselves from buying
motorcycles.

Gunadi exposed in January 2008 Honda still ranked highest by selling
208,130 units, up from 153,806 units in January 2007.

In the meantime, Yamaha tailed Honda by selling 185,900 units of
motorcycles, up from 133,199 units in January 2007, while Suzuki in
January 2008 was able to sell 73,043 units of motorcycles.

Three factors

According to him, the significant growth was supported by improved
domestic macro-economic conditions.

He continued there were at least three factors spurring motorcycle sales
volume. The first factor is motorcycle has become a basic need among
Indonesian families.

Second, the controllable inflation has maintained the people's purchasing
power. Third, the relatively low BI Rate at 8% since December 2007 has cut
credit interest rate to 12%-14% per annum. "Most people are still buying
motorcycles on credits."

Domestic motorcycle producers are optimistic they will be able to meet the
target to sell a total 5.2 million units of motorcycles this year.

Nice Picture

2008-02-10T17:37:00.000-08:00

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BI to Sell 3 Units

2008-02-05T19:18:00.000-08:00

Bank Indonesia has planned to sell three commercial units to the
government, but it will sell IndoverBank to one of the state banks.

Bank Indonesia Deputy Governor Budi Mulya said BI and the government have
agreed that BI will sell NV De Indonesische Overzeese Bank (Indover Bank),
PT Asuransi Kredit Indonesia (Askrindo) and PT Bahana Pembinaan Usaha
Indonesia (BPUI) this year.

"The point is that we will sell the three units to the government. We will
discuss how to transfer it later. But it will be in 2008," he said
yesterday.

BI controls 100% shares of Indover or at IDR53.9 billion. BI also owns 55%
shares of Askrindo and 82.2% shares of BPUI.

Budi said that a state bank will take over Indover as the bank is
strategic to drive Indonesian export to Asia and Europe.

Actually Bank Ekspor Indonesia (BEI) has proposed to take over the bank
but BI and the government did not respond. Rumor said BEI will take over
Indover at US$40 million, but they have the problem on legal lending
limit.

Rumor said that Bank Mandiri is serious to acquire Indover. "We will see
on whether there will be other bidder," Budi said.

He said Indover has been dealing with its losses and the unperformed loan
so that it will meet the target on recovery rate. Last year, the bank has
cut the loss from EUR10 million to EUR4.9 million.

The bank has targeted to post the net profit of EUR120 thousand last year
from the disbursed loan of EUR211.5 million.

While the loss is lower, the assets also have been lower. In 2006 the
asset was EUR743 million compared with EUR781.8 million in 2005 and
EUR787.3 million in 2004.

Regarding with the sale of BPUI shares, Budi said BI will discuss the
Investment Account Fund (RDI) with the SOE Minister and Finance Minister.
The government has asked that IDR1.2 trillion of RDI should be accounted
as the government's shares.

The total RDI of BPUI that are used to stabilize the money market and
capital market have been increasing from the initial figure of IDR250
billion.

It did not include RDI of 2006 as much as IDR163 billion and it will
increase to IDR170 billion if there is no restructuring.

The debt of BPUI to non-governmental-debtors has declined from US$300
million to US$30 million.

Budi said that BI stocks at Askrindo have been diluted as the government
has injected IDR850 billion last year so that BI's stocks at the company
has declined to 17.6%.

AXA gaveway USD 500 Million of Shares for its employess

2008-02-04T20:21:00.000-08:00

JAKARTA - French-based insurer, AXA, gave shares valued about USD 500
Million to its employess worldwide. In a program called AXA Miles which is
a share ownership program that is done for the first time by a large-scale
global corporation.

"The program gave away 0.7 percent of shares owned by AXA Global which
headquartered in France to its 112,100 employess worldwide" Country CEO
AXA Indonesia Randy Lianggara explains in Jakarta yesterday (4/2).
Starting this year, AXA employees will be given 50 shares for free
irrespective of seniority, level, or position. "The gaveaway was based on
company performance in total," he mention.

If one AXA shares valued at EUR 22-EUR 25, with 14 million given away
shares means corporation must allocate EUR 308 - 350 million. If current
exchange rate for EUR against IDR is 14,000, then corporation must
allocate IDR 4,3 - 4,9 trilion or about USD 500 Million.

"For Indonesia, of all 500 AXA employees, 400 eligible for AXA Miles
program" he said. If so, AXA Indonesia share will be IDR 12,3 - 14
billion. According to him, the program is a part of AXA Ambition to be the
preferred company by 2012 for clients, shareholders, and employees.

"We believe employees is an important asset. AXA Miles is a program which
make significant change. Since believed to give sense of belonging to
employees," he explains.

With regards of AXA Indonesias performance, Randy reveals last year was a
satisfying one. Proven by premium achievement which exceed their target,
eventhough he reluctant to mention the figures. "We are currently binded
by time of blackout period. So we cannot inform you the figures now
because currently AXA Indonesia ranked second in Asia after Hongkong with
the largest growth in the region."

AXA Indonesia operates through AXA Mandiri Financial Services, AXA
Financial Indonesia, AXA Life Indonesia, and AXA Asset Management
Indonesia.

Great Expectation

2008-01-31T22:52:00.000-08:00

(See attached file: CIMG0728.JPG)(See attached file: CIMG0727.JPG)

HSBC Aggressive in Micro Financing

2008-01-31T17:30:00.001-08:00

Becoming foreign bank is not a problem for HSBC to be aggressive in the
competition in micro financing by targeting to have 500,000 customers.

The Chief Executive Officer of HSBC Indonesia Rakesh Bhatia said the bank
is committed to support Indonesia amid the risk of global turbulence that
overshadows the country.

"By having more branch offices we show our long term commitment in
Indonesia," he said while launching four new branch offices of the bank
yesterday.

For micro sector, he said, the bank will focus on individual and
productive sector. The sector, he said, should support the corporate
service provided by the bank.

He said the government also has offered the bank to take part in corporate
and infrastructure financing.

"We always see opportunities. At least we have just take part to become
underwriter for US$2 billion global bonds for the country."

So far the icon in micro financing is PT Bank Rakyat Indonesia Tbk, as it
has thousands of office to the village level.

But presently Bank Danamon also has been in this sector by opening 7,000
units of Danamon Simpan Pinjam.

Some rural bankers have been complaining that their market was seized by
the aggressiveness of big banks. But the big banks have said that the
market is still huge.

Ravi Sreedharan, the Head of Personal Financial Services HSBC, said that
micro financing is one out of its four focuses.

He said the bank has opened 64 offices of micro banking. Today the bank
has had 80 units of office.

"We will open at least 15-20 offices this year plus around 40 offices of
micro banking unit."

Ravi said that the total customers of the micro unit have been 130,000,
and at the end of the year it will be 500,000.

He said that the sharia service of HSBC Amanah is aimed at supporting the
policy of micro financing. He said that the conventional and the sharia
service offer individual banking service such as wealth management.

HSBC Amanah also provide investment base product like mutual fund - in
cooperation with AIA insurance and Fortis Investment. The bank has been
managing IDR150 billion for the service.

On corporate sector HSBC Amanah provide sharia syndication such as US$322
million for Pertamina in 2004, followed with US$200 million in 2006.

In 2007 HSBC Amanah also provide syndication loan of US$50 million for
Krakatau Steel and US$128 million for Berlian Laju Tanker.

13 Insurance Companies Got Sanctions

2008-01-29T23:28:00.001-08:00

The Insurance Bureau of Bapepam LK of Finance Ministry has sanctioned 13
insurance companies as they did not surrender the risk profile of
automotive insurance they have had during the provided time.

The Chairman of the Insurance Bureau, Isa Rahmatarwata, said the sanctions
have been given.

"They should pay attention to this as it will affect the process of fit
and proper test for the directors," he said over the weekend.

He said that until the deadline 17 companies did not surrender the
required data. After an investigation the authority found that two of
those companies don't have car insurance business.

"We have sent them letters not to sell automotive insurance before they
file their report that includes the premium rate," Isa said.

Two other companies have car insurance business, but they are in the
process of clearing out the business as they are in merger process. But he
declined to mention their name.

Until the deadline of November 30 2007, 31 companies filed their data on
risk and loss profile of their cars insurance. The Finance Ministry data
shows that 67 insurance companies have not filed their required data. They
have to collect the data base on the tariff set by PMK No.74/2007 on car
insurance business.

He said that among the sanction is warning that will be effective in one
month. If within that period they still do not file their report, the
sanction will be business limitation.

An official of Indonesian General Insurance Association (AAUI), Julian
Noor, said that he did not know yet about the sanction as the association
will arrange a meeting with the regulator this week.

regards-

SYAMSUL SUNDUSENG
PT. Asuransi Tokio Marine Indonesia
Jl. A. P. Pettarani No. 18 B-2
Makassar
Phone : +62-411-4660 816/17
Fax : +62-411-4660818
^=========================================^
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Asia Insurance Review

2008-01-21T17:29:00.000-08:00

The government and the business sector are still negotiating the details
for the Draft of Regulation on Job Cut Insurance and it is not known when
the draft would be ready.

Businessmen were reported to have said that they would want a ceiling for
the contribution and that should be five times the non-taxable income. As
the non-taxable income is Rs 1.1 million (US$116.6 dollars), five times
that amount would be Rs 5.5 million. Without the ceiling, they would not
be willing to agree to the regulation.

However, as the government has a different view on what the regulation
should be, the negotiations have since stalled.

Garment makers to invest $122M

2008-01-17T18:39:00.001-08:00

TIN, Jan 14. A number of textile companies plan to build new garment
factories with a total investment of Rp1.1 trillion ($122 million) this
year, the Indonesian Textile Association (API) said, Asia Pulse reported
Tuesday (8/1/08).

Growing demand has prompted the plan by six large companies - PT Sritex,
PT Argo Pantes, PT Sari Warna Asli, PT Batik Keris Utama, PT Lucky Print
Abadi and PT Apac Inti Corpora - and ten other smaller companies.

Each of the six companies will invest Rp100 billion to produce 12,000
garments annually, API chairman Benny Soetrisno said.

In 2007, the country exported 380,000 tons of garment valued at $5.97
billion or an increase of 13.2% from the previous year.

Governor Building on Watched

2008-01-17T00:57:00.000-08:00

Governor Building of South Celebes on watch by policeman, because reaction
of citizen about local general.
Mass of Syahrul Yasin Limpo make traffic jam in every road until toll road.

(See attached file: CIMG3073.JPG)
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Automotive Insurance Boost Premium Income of Adira

2008-01-14T17:53:00.001-08:00

PT Asuransi Adira Dinamika (Adira Insurance) has posted the premium income
of IDR520 billion, an increase of 18% from IDR443 billion in 2006.

The Chief Finance Officer of Adira Hafid Hadeli said the premium income
has beaten the target of IDR500 billion. "Automotive insurance contribute
75% to the total premium income."

The net profit, meanwhile, has increased by 25% from IDR91 billion to
IDR115 billion - IDR120 billion. He said that the profit and premium
income will grow by 20%-25% this year.

He said that in 2008 the company will offer new product but it will still
focus on automotive insurance. "We will also develop non automotive
insurance like on property."

The company's investment also has increased from IDR577 billion in 2006 to
IDR730 billion, consisting in time deposit (30%), bonds (40%), and mutual
fund (30%). The investment result was IDR74 billion compared with IDR50
billion in 2006.

"The investment portfolio will be the same. The minor change is on bonds
that will be partly moved to mutual fund."

The company has launched the new product of Motopro, a special insurance
foe automotive. It covers the risk on motorcycles as well as on the
riders.

The product covers the risk on fire, stealing, and accident. It also
covers the risk of personal accident with the maximum claim of IDR20
million for death claim and IDR1.5 million for personal accident claim.

The minimum coverage is one year and the motorcycle must be less than
seven years old. The premium rates are various such as 2.8% for Jadetabek,
West Java and Banten, 2.3% for Sumatera, Sulawesi, Kalimantan, and 2% for
Central Java, Yogyakarta, East Java and Bali 2%. "We seek IDR300 billion
from this product this year," said the Business Development Division Head
of Adira Insurance, Maya Pudjianto.

The Managing Director of Adira Insurance Indra Baruna said that the
potency of motorcycle insurance is huge as there are seven to eight
million units of motorcycle that have passed credit period while the
annual purchase of motorcycle reaches 500,000 - 700,000 units.

r
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Nice Picture of Sulviani

2008-01-11T01:08:00.000-08:00

BNI Sells Finconesia to Charoen

2008-01-07T18:21:00.000-08:00

PT Bank Negara Indonesia Tbk has reached the deal to sell 48% shares of PT
Bank Finconesia to Charoen Pokhpan Group, an agribusiness company from
Thailand.

An executive getting involved in the transaction said that Charoen has
planned to change the bank into specialized bank for animal farming.

"The deal has been reached last December. BNI will use the money to
support its expansion plan," he said in Jakarta yesterday.

The transaction will be concluded this year.

BNI Corporate Secretary Elvyn G Masassya said he did not know the news as
he was on vacation.

Bank Indonesia Director for Banking License and Information, Yang Ahmad
Rizal, said that he has not got any report from BNI and from Bank
Finconesia. "There is no report."

The share price of BNI closed 1.55% lower to IDR1,910 from IDR1.940 on the
previous day so that the market cap was IDR29.17 trillion.

Since last April BNI has been waiting for investors who would like to
acquire the mixed bank. But most investors have been asking to get
controlling stake in the bank.

BNI has targeted to conclude the sale this year as it will use the money
to acquire some small banks.

Bank Finconesia is a mixed bank. Last year Charoen, through PT Dian Intan
Perkasa, has acquired 51% shares of Bank Finconesia from Commerzbank
Aktiengesellschaft of Germany at US$58.8 million. Commerzbank has bought
the stocks from BNI in 2002.

As much as 99% credit of Finconesia has been for corporate sector.
Following the transfer of ownership the bank will increase the allocation
for SME to 25%.

Old & New 2007-2008

2008-01-02T00:54:00.000-08:00

(See attached file: CIMG2953.JPG)(See attached file: CIMG2966.JPG)

End Of Year in Bawakaraeng Mountain

2008-01-02T00:18:00.000-08:00

Nice, cool and.....(See attached file: CIMG2951.JPG)(See attached file:
CIMG2956.JPG)

Windstorm in Losari Beach

2007-12-27T00:27:00.000-08:00

(Makassar-Indonesia) Today in the morning windstorm in Losari Beach , you
can see 2 people to fight survive, be care be ware.....

Iwan Natsir Graduation Party-UNHAS

2007-12-27T00:24:00.000-08:00

Congratulation for Mr. Iwan Natsir, ST with your additional title for
Sarjana Teknik. You get it in 6 years (too long...)
In the picture are your nice Mom, and sister and where is the other? We
hope you can cacth your ambition immediately as engineer.

Our Vacation in Malino

2007-12-25T19:25:00.000-08:00

They are good friends to make your problem flushed away. The location in
Malino is too cool because near from water fall from Bawakaraeng Mountain.
If you want to go there, may be you can contact me ini this blogspot.

Transaction on Bank Nusantara Signed

2007-12-25T17:24:00.000-08:00

Bisnis Indonesia

Acom Co Ltd and The Bank of Tokyo-Mitsubishi UFJ Ltd (BTMU) have signed
acquisition agreement of 239 million or 75.41% shares of PT Bank Nusantara
Parahyangan Tbk.

The Corporate Secretary Bank of Bank Nusantara Parahyangan Mario Yahya
said the agreement was signed in Jakarta on December 17 2007.

"With the transaction Acom get 55.41% shares and BTMU get the rest 20%
shares," he said in a statement by adding that Bank Indonesia has approved
the acquisition plan of the two banks.

In this regard Bank Indonesia has issued the letter of BI Governor No
9/130/GBI/DPIP/Rahasia on September 13 2007 and the letter Bank Indonesia
Bandung No.9/205/DS/Bd on September 27 2007.

In the meantime BNP shareholders have approved the acquisition plan in
their EEGMS on January 5 2007.

The signing was attended by Rituo Ando of Acom and Yoichi Kondo of BTMU.

Bank Nusantara was presented by PT Hermawan Sentral Investama, PT Hermawan
Ladang Arta, PT Gucimas Sukses Makmur, PT Gema Megah Korporindo, PT
Teradana Megah, PT Binadana Nata Arta and some other shareholders.

"Hopefully the acquisition will be positive for the development of BNP as
Acom and BTMU are strong in international market," he said.

He said Acom will control 55.41% shares and BTMU will get 20% shares. The
other shareholders will be Hermawan Sentral Investama & Hermawan Ladang
Arta (7.50% each), Gucimas (1.27%), Gema Megah Korporindo (2.25%),
Binadana (0.28%), and others (5.80%).

To comply with the regulation of the Capital Market and Financial
Institution Supervisory Board (Bapepam LK), Acom will arrange tender offer
over the rest of the stocks.

The new commissioners and directors of the bank have reflected the
acquisition.

"The president director will be Takeshi Ishikawa, but it should wait for
fit and proper test by Bank Indonesia."

Local Election Again

2007-12-24T07:36:00.000-08:00

After Election in view months a go, one candidate not respond the result. If KPPUD local election again in 4 district (Kab. Gowa, Kab. Jeneponto, Kab. Tana Toraja, Kab. Bone) maybe can make big trouble from the winner last months. But, we hope it can not be happen. Peace man...

A Glipse About makassar

2007-12-23T01:29:00.000-08:00

(Makassar-online) The capital city of South Sulawesi , Makassar , for centuries has been the gateway to eastern Indonesia . This bustling commercial, shipping, and government center constitutes a major air-sea crossroads between western and eastern Indonesia.

The seafaring Bugis and Makassar people dominate the southern tip and along the coast, who famous for being seafarers, build settled without any nails and wooden hull that ride high over the wave, their tall-masted Phinisi schooners sea voyage over the Madagascar for any trading purpose.

The people of South Sulawesi are sailors who are proud of their heritage, glad hand people, great brotherhood and highest willingness to protect the visitors. Their ancestors have left them one of the last remaining sailing fleets in the world and a historic lineage of kings from former kingdoms of Gowa and Bone. The southern part of this province holds the mysteries of this glorious past.

Whereas the northern part of South Sulawesi is inhabited by the Torajas whose unique culture rivals that of the Balinese. Their ceremonies and architecture are the primary reason as the popular tourist destination.

Asian Idol

2007-12-23T01:05:00.002-08:00

It says that Asian Idol will be held somewhere in the month of November this year. Indonesia's largest TV station, RCTI will be the main TV station. The competition will also be broadcasted live in the competing countries.

There will be 7 countries competing - Indonesia, Malaysia, Singapore, The Philippines, Vietnam, India dan Kazakhstan. Each countries will be represented by the winner from the choice season.

Every competing countries will send a judge only to comment on the contestants' performances. Viewers in the competing countries will cast their votes via SMS to determine who stays & who goes.

Indonesian Idol Project Director, Daniel Hartanto said that Indonesian Idol representative is not yet decided as the 4th season is still in its process. He also said that Malaysia, India & The Philippines are the countries to beat.

Fotini Paraskakis, Production Director of Freemantle Media said that they would love to have Simon Cowell as one of the judges. But, it might not be possible as Simon Cowell is a super busy guy.

And on This summer the winner is Hady mirza from Singapore... Where is Indonesian people??? Mike are still harmful?

Hady started singing at the age of 8 and instantly fell in love with it because of the passion in each individual genre. It is a way for him to convey his emotions and express himself freely. On the show Hady was known for his diverse versatility singing not only R&B, but Pop, Rock and Soul.

His occupation was a pub performer but he wished to be a professional soccer player growing up. The song that would describe him best is "Bohemian Rhapsody" by Queen because of the flow of feelings and brilliant arrangement.

Three words Hady has used to describe himself are: simple, strong-willed and stubborn. He says he is good at ball games, entertaining guests and making scrambled eggs.

His favourite singers include John Legend, Robbie Williams, Babyface, Boyz II Men, Peter Cetera and Jamie Cullum. He has a very tight knit family and friends and is very grateful to all those who believe in him, especially his mum.

Hady's debut album, self-titled Hady Mirza, was released in Singapore on 13 November 2006 [1] and achieved Platinum status within 4 days of release. The album will be repacked with additional materials.

In June 2007, Hady was awarded with two major awards in Anugerah Planet Muzik 2007, a yearly malay music award show awarding the best musicians in Singapore, Malaysia and Indonesia. Hady was voted "Most Popular Artiste (Singapore)" and his self-penned malay single "Merpati" was voted "Most Popular Song (Singapore)"

Hady Mirza was also chosen to sing an exclusive song "You and I" for Police Week 2007 held in conjunction with Police Day Parade 2007. In October 2007, to coincide with the grand opening of the KPE Tunnel, a special compilation album Sounds of the Underground was recorded, and Hady Mirza was featured on the track Jangan Memandu di Pinggir Jalan (Don't Drive on the Side of the Road).

One year after his Singapore Idol win, Hady Mirza goes another step further in winning the world's first-ever Asian Idol, featuring Idol winners from six countries: Singapore, Malaysia, Indonesia, Vietnam, the Philippines and India. With his unique soulful voice and charming looks, Hady Mirza will now represent Asia to promote the diversified Asian music to the word (Source: Wikipedia)

Strong Earthquake Rocks Eastern Indonesia

2007-12-23T00:41:00.000-08:00

(The Jakartapost): A strong earthquake rocked parts of Papua province in eastern Indonesia on Saturday, causing some residents to flee their homes in panic, but there were no immediate reports of damage or injury.

The tremblor, with was initially measured at magnitude 6.4, struck 183 kilometers to the west of the coastal city of the capital city Jayapura, according to the U.S. Geological Survey.

"I felt unsteady on my feet and saw people running from their homes," said a resident Robert Fanwi. He said the quake did not appear to have caused any major damage in his neighborhood.

Agung Saptaji, a local geoscientist, said he had received no reports of damage.

Quakes of 6.5 magnitude and above can cause extensive damage depending on depth and other factors.

Indonesia, the world's largest archipelago with 17,500 islands, is prone to seismic upheavals because of its location on the so-called Pacific "Ring of Fire," an arc of volcanoes and fault lines encircling the Pacific Basin.

A giant quake off Indonesia's Sumatra island in 2005 spawned the Asian tsunami and killed more than 230,000 people in 11 countries, more than half of them in Indonesia. (**)

Makassar Flood

2007-12-22T23:32:00.000-08:00

Since December 2007, Makassar around always rain everyday-every times. In the morning get up wow it's rain, so the citizen goes to working in the raining and if go to by bike maybe it's challenges because can make your dress wet up. After working at 5 pm still rain until dawn.