The Indonesian Police Watch (IPW) reported on Sunday that the recent five-day series of massive rallies to protest against the government's plan to increase fuel prices had resulted in damage to at least 16 police stations nationwide.
In its press release, IPW said four damaged police stations were located in Jakarta, while the remaining 12 were located in several other big cities, like Makassar, Medan, Yogyakarta, Samarinda and Kendari.
The rallies, held from March 27 to March 31 by students, activists and supporters of the Indonesian Democratic Party of Struggle, the country's largest opposition party, also damaged four patrol cars and one police motorcycle.
The House of Representatives decided early on Saturday to allow the government to raise subsidized fuel prices only if the Indonesia Crude Price (ICP) was 15 percent higher than assumed in the state budget within six months, meaning that the government had to cancel its initial plan to increase subsidized fuel prices today.
Sunday, April 1, 2012
PKS told to leave government over fuel price rebellion
Democratic Party executive and lawmaker Umar Arsal said on Sunday the Prosperous Justice Party (PKS) should withdraw its ministers from President Susilo Bambang Yudhoyono's Cabinet after refusing to support the government's recent plan to increase fuel prices.
Umar said the other parties within the government coalition had also been disturbed by the PKS' unexpected political move in the recent fuel price controversy.
“I can understand if the Democratic Party and other
parties in our coalition ask the PKS to take their ministers out of the Cabinet,” Umar said as quoted by tribunnews.com.
The PKS initially had four ministers in Yudhoyono's Cabinet before the President appointed former environment
minister Gusti Muhammad Hatta as Research and Technology Minister replacing Suharna Surapranata, a senior PKS member, in a major Cabinet reshuffle last year.
In a dramatic vote, the House finally agreed to revise the 2012 state budget in the early hours of Saturday. The decision automatically aborted the government’s plan to raise the fuel price by 33 percent from its current price on April 1 but allowed it to increase the price if the Indonesian Crude Price is 15 percent higher than assumed in the state budget within six months.
The PKS had earlier said it would oppose the plan despite being part of the ruling coalition. The party’s lawmakers maintained their opposition during voting to determine the fuel price increase.
Indonesia sets the price of subsidized fuel at Rp 4.500 (49 US cents) per liter, making the country’s fuel price the cheapest among Southeast Asia countries.
Umar said the other parties within the government coalition had also been disturbed by the PKS' unexpected political move in the recent fuel price controversy.
“I can understand if the Democratic Party and other
parties in our coalition ask the PKS to take their ministers out of the Cabinet,” Umar said as quoted by tribunnews.com.
The PKS initially had four ministers in Yudhoyono's Cabinet before the President appointed former environment
minister Gusti Muhammad Hatta as Research and Technology Minister replacing Suharna Surapranata, a senior PKS member, in a major Cabinet reshuffle last year.
In a dramatic vote, the House finally agreed to revise the 2012 state budget in the early hours of Saturday. The decision automatically aborted the government’s plan to raise the fuel price by 33 percent from its current price on April 1 but allowed it to increase the price if the Indonesian Crude Price is 15 percent higher than assumed in the state budget within six months.
The PKS had earlier said it would oppose the plan despite being part of the ruling coalition. The party’s lawmakers maintained their opposition during voting to determine the fuel price increase.
Indonesia sets the price of subsidized fuel at Rp 4.500 (49 US cents) per liter, making the country’s fuel price the cheapest among Southeast Asia countries.
House slams budget revision plan
The House budget committee’s meeting with the government over the revision of the state budget reached a stalemate on Thursday, with lawmakers claiming that government “mismanagement” caused an overhaul of macroeconomic assumptions.
“It has been merely three months since we approved [the 2012 state budget] and we have to make significant and thorough changes already,” Tamsil Linrung, the deputy chairman of the House budget committee from Prosperous Justice Party (PKS), said during the hearing, which was attended by representatives from the Finance Ministry, Bank Indonesia, the National Development Planning Agency (Bappenas) and the Central Statistics Agency (BPS).
“If the changes are based on external factors, then we could understand. But the problem here is the changes look to be caused not by external factors only, but also internal problems, such as the government’s mismanagement,” Tamsil said, citing that state-owned electricity company PT PLN saw electricity subsidies double to Rp 89.55 trillion, from Rp 40.45 trillion in the previous budget.
The government is proposing several alterations in macroeconomic indicators for the state budget. It proposes to lower the yearly economic-growth forecast from 6.7 percent to 6.5 percent, increase the annual inflation target from 5.3 percent to 7 percent and change the official exchange rate to Rp 9,000, from Rp 8,800, against the US dollar.
The proposed revisions will see the price of Indonesian crude oil change to US$105 per barrel, from $90 per barrel, and an oil production target of 930,000 barrels per day (bpd), down from 950,000 bpd.
The substantial rise of global oil prices and the economic slowdown in United States and Europe are among the reasons behind the revision, Finance Ministry acting chief of fiscal policy Bambang Brodjonegoro told lawmakers during the hearing.
Bambang, however, acknowledged government mismanagement had been the major factor behind the overhaul in the state budget’s macroeconomic assumptions.
“We certainly have an internal problem on why the electricity subsidy could soar and our oil production could not achieve the estimated targets,” Bambang said, adding that the government, through the state-owned enterprises minister, would conduct internal evaluations on the matter.
The revision of macroeconomic assumptions in the state budget was imperative to keep the country’s budget deficit below the permissible level of 2.5 percent of gross domestic product (GDP), Bambang told lawmakers at the end of the hearing, which was adjourned until Friday.
“It has been merely three months since we approved [the 2012 state budget] and we have to make significant and thorough changes already,” Tamsil Linrung, the deputy chairman of the House budget committee from Prosperous Justice Party (PKS), said during the hearing, which was attended by representatives from the Finance Ministry, Bank Indonesia, the National Development Planning Agency (Bappenas) and the Central Statistics Agency (BPS).
“If the changes are based on external factors, then we could understand. But the problem here is the changes look to be caused not by external factors only, but also internal problems, such as the government’s mismanagement,” Tamsil said, citing that state-owned electricity company PT PLN saw electricity subsidies double to Rp 89.55 trillion, from Rp 40.45 trillion in the previous budget.
The government is proposing several alterations in macroeconomic indicators for the state budget. It proposes to lower the yearly economic-growth forecast from 6.7 percent to 6.5 percent, increase the annual inflation target from 5.3 percent to 7 percent and change the official exchange rate to Rp 9,000, from Rp 8,800, against the US dollar.
The proposed revisions will see the price of Indonesian crude oil change to US$105 per barrel, from $90 per barrel, and an oil production target of 930,000 barrels per day (bpd), down from 950,000 bpd.
The substantial rise of global oil prices and the economic slowdown in United States and Europe are among the reasons behind the revision, Finance Ministry acting chief of fiscal policy Bambang Brodjonegoro told lawmakers during the hearing.
Bambang, however, acknowledged government mismanagement had been the major factor behind the overhaul in the state budget’s macroeconomic assumptions.
“We certainly have an internal problem on why the electricity subsidy could soar and our oil production could not achieve the estimated targets,” Bambang said, adding that the government, through the state-owned enterprises minister, would conduct internal evaluations on the matter.
The revision of macroeconomic assumptions in the state budget was imperative to keep the country’s budget deficit below the permissible level of 2.5 percent of gross domestic product (GDP), Bambang told lawmakers at the end of the hearing, which was adjourned until Friday.
Sunday, March 25, 2012
Headlines Indonesia Has More of ASEAN's Top Companies 50 companies in Southeast Asia may grow into multinational companies.
A consulting firm, Boston Consulting Group (BCG), figures 50 companies in Southeast Asia will emerge as the new market leaders in the region. Indonesian and Malaysian companies are the major contributors with a total of 12 corporations.
In The Companies Piloting a Soaring Region report obtained by VIVAnews, BCG announced that the 50 companies were selected from an analysis of geographic and economic diversity.
BCG at least listed around 500 companies in Southeast Asia of which annual income reach at least US$500 million per year.
The firm also measures top five companies in each area as well as considering their chances of turning into multinational companies.
Out of the abovementioned criteria, BCG came to conclusion that 50 companies in Southeast Asia may grow into multinational companies.
Indonesia and Malaysia contribute 12 first-rate companies each.
In the meantime, Singapore and Thailand can only produce 11 candidates of multinational companies each.
The Philippines and Vietnam only have two companies each that are considered worthy to spring up in regional and international markets.
Southeast Asia's economies have been out of the world's radar. The international community has so far only focused on India and China.
In fact, following the financial crisis in Asia in 1997-1998, Southeast Asia’s economies have recovered and developed significantly. The gross domestic product (GDP) of the Philippines and Singapore recovered completely in 1999.
Meanwhile, Malaysia, Thailand and Indonesia's economies recovered within 5 years.
Currently, Southeast Asia's GDP has reached US$3 trillion, greater than Brasil’s and Russia’s. Between 2005 and 2010, Southeast Asia’s economies grew more than 7% per year.
Now, the average per capita income of the people in Southeast Asia has climbed to nearly US$5.500.
In The Companies Piloting a Soaring Region report obtained by VIVAnews, BCG announced that the 50 companies were selected from an analysis of geographic and economic diversity.
BCG at least listed around 500 companies in Southeast Asia of which annual income reach at least US$500 million per year.
The firm also measures top five companies in each area as well as considering their chances of turning into multinational companies.
Out of the abovementioned criteria, BCG came to conclusion that 50 companies in Southeast Asia may grow into multinational companies.
Indonesia and Malaysia contribute 12 first-rate companies each.
In the meantime, Singapore and Thailand can only produce 11 candidates of multinational companies each.
The Philippines and Vietnam only have two companies each that are considered worthy to spring up in regional and international markets.
Southeast Asia's economies have been out of the world's radar. The international community has so far only focused on India and China.
In fact, following the financial crisis in Asia in 1997-1998, Southeast Asia’s economies have recovered and developed significantly. The gross domestic product (GDP) of the Philippines and Singapore recovered completely in 1999.
Meanwhile, Malaysia, Thailand and Indonesia's economies recovered within 5 years.
Currently, Southeast Asia's GDP has reached US$3 trillion, greater than Brasil’s and Russia’s. Between 2005 and 2010, Southeast Asia’s economies grew more than 7% per year.
Now, the average per capita income of the people in Southeast Asia has climbed to nearly US$5.500.
New Fuel Pricing, Workers to Shut Down Port “Chances are we will do it."
More workers said toll roads and port gates will be shut down if the government proceeds with the increase of fuel prices by early April.
Chairman of Indonesian Labor Union Confederation (KSPI), Said Iqbal, said various efforts have been taken by the workers to block the government from implementing the plan.
“Chances are we will do it. If the government ignores the labor union, then what has happened in Bekasi will take place once again,” Said told VIVAnews, today.
During the protest held before the Presidential Palace yesterday, Said also mentioned that five days prior to fuel price rise, workers will hold another mass protest in front of the House of Representatives (DPR) building.
“We will protest again on March 27 during which the House will hold a plenary session to discuss about the State Budget revision,” he said.
“We will urge House to reject the proposed rise in the revised State Budget, so the government won’t be able to increase fuel prices.”
Reason Behind Fuel Price Rise
President Susilo Bambang Yudhoyono (SBY) said the decision to increase fuel price was not an easy one. However, world's crude oil prices are soaring and in effect add more pressures to the State Budget.
Following the meeting in Cikeas with a number of coalition party leaders on March 14, SBY confirmed that any president would have raised the fuel price as other options were deemed difficult.
SBY said the government wanted a sound and effective State Budget. Therefore, the plan to increase fuel price was seen as an adjustment. However, the government also understood that this policy would affect the lives of many.
“When the State Budget is revised, fuel prices would also be adjusted. This will affect the lives of many,” he said.
Chairman of Indonesian Labor Union Confederation (KSPI), Said Iqbal, said various efforts have been taken by the workers to block the government from implementing the plan.
“Chances are we will do it. If the government ignores the labor union, then what has happened in Bekasi will take place once again,” Said told VIVAnews, today.
During the protest held before the Presidential Palace yesterday, Said also mentioned that five days prior to fuel price rise, workers will hold another mass protest in front of the House of Representatives (DPR) building.
“We will protest again on March 27 during which the House will hold a plenary session to discuss about the State Budget revision,” he said.
“We will urge House to reject the proposed rise in the revised State Budget, so the government won’t be able to increase fuel prices.”
Reason Behind Fuel Price Rise
President Susilo Bambang Yudhoyono (SBY) said the decision to increase fuel price was not an easy one. However, world's crude oil prices are soaring and in effect add more pressures to the State Budget.
Following the meeting in Cikeas with a number of coalition party leaders on March 14, SBY confirmed that any president would have raised the fuel price as other options were deemed difficult.
SBY said the government wanted a sound and effective State Budget. Therefore, the plan to increase fuel price was seen as an adjustment. However, the government also understood that this policy would affect the lives of many.
“When the State Budget is revised, fuel prices would also be adjusted. This will affect the lives of many,” he said.
Police Probe into Phone Credit Theft “[The losses reach] trillions of rupiah. And it's only from one operator.”
Chief of Police Criminal Investigation, Ins. Gen. Sutarman, said almost all cellular operators committed phone credit theft.
“[The losses reach] trillions of rupiah. And it's only from one operator,” said Sutarman today, March 22.
Police have so far named three suspects from Telkomsel and two suspects from content providers, namely PT Mediaplay and PT Collibri Network.
“The reports came from Telkomsel customers. We're able to find evidence which may lead this to a criminal case,” he explained.
Currently, Sutarman said his team is probing into the possibility of violation that XL and Indosat may have committed.
Sutarman said one form of violations pulled off by the operator and content providers is by complicating the unreg facility of a product while the registration is made easy.
“There is an element of intention,” he explained.
“[The losses reach] trillions of rupiah. And it's only from one operator,” said Sutarman today, March 22.
Police have so far named three suspects from Telkomsel and two suspects from content providers, namely PT Mediaplay and PT Collibri Network.
“The reports came from Telkomsel customers. We're able to find evidence which may lead this to a criminal case,” he explained.
Currently, Sutarman said his team is probing into the possibility of violation that XL and Indosat may have committed.
Sutarman said one form of violations pulled off by the operator and content providers is by complicating the unreg facility of a product while the registration is made easy.
“There is an element of intention,” he explained.
Study:2011 Sees 63 Cases of Religious Uproar
The Faith and Cross-Cultural Study Program (CRCS) of the University of Gadjah Mada (UGM) has published an annual report on religion-related cases of violence. UGM stated around 63 of such cases occurred in 2011.
A CRCS researcher, Dr. Suhadi Cholil, said CRCS set down 20 acts of violence, seven accusations of blasphemy and 36 house of worship-related cases. The most afflicted areas were West Java, DKI and Banten, followed by Central Java, North Sumatra and Riau.
According to Suhadi, faith organizations play crucial role in persuading their followers to avoid committing violent acts. “Children must be taught to say no to violent acts. Religious organizations plays a major role in educating them,” he said in a release, today.
The research was launched on Wednesday, having UGM’s political analyst, Ari Dwipayana, and a cleric from Pondok Pesantren Al-Muayyad, Solo, Dian Nafi, as speakers.
Ari Dwipayana said the frequent religious acts of violence have been an impact of discriminative acts committed by the state towards the minority.
“I believe the central government tends to not doing anything on the issues as more cases are localized,” he said. “We should consider the cases of GKI Yasmin and Ahmadiyah. The President didn’t seem willing to take any risks and turned the cases into local issues,” he said.
Ari feared the various incidents would lead the nation to become more permissive towards acts of violence. Meanwhile, some religious groups committed violence by applying dogmatic principles.
“It’s a great danger if religious violence is only viewed as a normal issue,” he said.
The government and the House of Representatives (DPR) must issue out a regulation that can protect and value religious freedom, he said, despite promoting discriminative and impartial regulations.
“Many religion-related laws are made for the purposes of electoral politics, political configuration, religious co-modification, and the economy,” he said.
Likewise, Dian Nafi, suggested the need for strengthening education on religious issues and increasing the sense of nationhood among younger generation.
“It is important for them to improve their sprituality in that a sense of dignity and a sense of belonging among other people is built,” Dian said.
A CRCS researcher, Dr. Suhadi Cholil, said CRCS set down 20 acts of violence, seven accusations of blasphemy and 36 house of worship-related cases. The most afflicted areas were West Java, DKI and Banten, followed by Central Java, North Sumatra and Riau.
According to Suhadi, faith organizations play crucial role in persuading their followers to avoid committing violent acts. “Children must be taught to say no to violent acts. Religious organizations plays a major role in educating them,” he said in a release, today.
The research was launched on Wednesday, having UGM’s political analyst, Ari Dwipayana, and a cleric from Pondok Pesantren Al-Muayyad, Solo, Dian Nafi, as speakers.
Ari Dwipayana said the frequent religious acts of violence have been an impact of discriminative acts committed by the state towards the minority.
“I believe the central government tends to not doing anything on the issues as more cases are localized,” he said. “We should consider the cases of GKI Yasmin and Ahmadiyah. The President didn’t seem willing to take any risks and turned the cases into local issues,” he said.
Ari feared the various incidents would lead the nation to become more permissive towards acts of violence. Meanwhile, some religious groups committed violence by applying dogmatic principles.
“It’s a great danger if religious violence is only viewed as a normal issue,” he said.
The government and the House of Representatives (DPR) must issue out a regulation that can protect and value religious freedom, he said, despite promoting discriminative and impartial regulations.
“Many religion-related laws are made for the purposes of electoral politics, political configuration, religious co-modification, and the economy,” he said.
Likewise, Dian Nafi, suggested the need for strengthening education on religious issues and increasing the sense of nationhood among younger generation.
“It is important for them to improve their sprituality in that a sense of dignity and a sense of belonging among other people is built,” Dian said.
Indonesia KPK Summons Two House Members
The national Corruption Eradication Commission (KPK) has scheduled questioning over two officials of the House of Representatives (DPR)’s Budget Committee named Olly Dondokambey and Tamsil Linrung, today.
Both Deputies of Budget Committee will undergo interrogation as witnesses of the Regional Infrastructure Development Acceleration (PPID) bribery case against suspect Wa Ode Nurhayati, who was a former member of the Budget Committee.
“They’re scheduled for examination against the suspect, WON,” said Chief of KPK’s Reporting & Information, Priharsa Nugraha, in Jakarta. WON is the initials of a politician from the National Mandate Party (PAN), Wa Ode Nurhayati.
As for Tamsil and Olly, it is not their first summons. They had been summoned by KPK for quizzes in another case. Meanwhile, in relation with the PPID bribery case which involves two employees of the Minister of Manpower & Transmigration, Muhaimin Iskandar, Olly and Tamsil had been examined twice earlier.
KPK has named Wa Ode as a suspect in the PPID budget bribery case in Aceh. Wa Ode allegedly received a bribe as regards the allocation of PPID project budget of Rp40 billion for three regencies in Nanggroe Aceh Darussalam.
The three regencies were Aceh Besar, Pidi Jaya, and Bener Meriah. Wa Ode is being charged to have violated article 12 letter a and b and or article 5 section 2 and or article 11 of the Corruption Eradication Law.
Both Deputies of Budget Committee will undergo interrogation as witnesses of the Regional Infrastructure Development Acceleration (PPID) bribery case against suspect Wa Ode Nurhayati, who was a former member of the Budget Committee.
“They’re scheduled for examination against the suspect, WON,” said Chief of KPK’s Reporting & Information, Priharsa Nugraha, in Jakarta. WON is the initials of a politician from the National Mandate Party (PAN), Wa Ode Nurhayati.
As for Tamsil and Olly, it is not their first summons. They had been summoned by KPK for quizzes in another case. Meanwhile, in relation with the PPID bribery case which involves two employees of the Minister of Manpower & Transmigration, Muhaimin Iskandar, Olly and Tamsil had been examined twice earlier.
KPK has named Wa Ode as a suspect in the PPID budget bribery case in Aceh. Wa Ode allegedly received a bribe as regards the allocation of PPID project budget of Rp40 billion for three regencies in Nanggroe Aceh Darussalam.
The three regencies were Aceh Besar, Pidi Jaya, and Bener Meriah. Wa Ode is being charged to have violated article 12 letter a and b and or article 5 section 2 and or article 11 of the Corruption Eradication Law.
Illegal Fuel Offered to Industrial Companies
In the past week, fuel accumulation continues in Kalimantan. Police seized 15,300 liters of diesel fuel sent for sale to industrial companies on Wednesdsay.
According to Head of Public Relations Division of West Kalimantan Police, Adj. Comm. Mukson Munandar, the coming fuel price rise in early April 1 was being benefited by many to gain profit by accumulating fuel.
“Around 7,300 liters of illegal fuel were seized from a spot. The perpetrators admitted that the fuel will be sold to industrial companies. 8,000 illegal diesel were also seized from an unregistered fuel tank,” said Mukson.
Police arrested a suspect with the initials of IK, 27, and a driver who transported the illegal fuel with the initials of BR, 45. The evidence in the form of illegal fuel is kept in Sambas Police Headquarter and West Kalimantan Police Headquarter.
A day earlier, Police also confiscated 8,600 illegal fuel. 500 liters and 400 liters of diesel fuel were taken over from a tank that the owner had bought from one of the gas station in Sungai Raya Dalam, Pontianak.
Meanwhile, 7,700 liters of petrol were seized from a ship on the waters of Kapuas River, Teluk Barak Village, Kedamin Hilir Village, Putussibau Selatan District, Kapuas Hulu Regency.
Fuel accumulation in West Kalimantan has been common within the past month. Data from the West Kalimantan Regional Police showed that from January to early March 2012, 22 fuel cases of fuel accumulation have been exposed.
According to Head of Public Relations Division of West Kalimantan Police, Adj. Comm. Mukson Munandar, the coming fuel price rise in early April 1 was being benefited by many to gain profit by accumulating fuel.
“Around 7,300 liters of illegal fuel were seized from a spot. The perpetrators admitted that the fuel will be sold to industrial companies. 8,000 illegal diesel were also seized from an unregistered fuel tank,” said Mukson.
Police arrested a suspect with the initials of IK, 27, and a driver who transported the illegal fuel with the initials of BR, 45. The evidence in the form of illegal fuel is kept in Sambas Police Headquarter and West Kalimantan Police Headquarter.
A day earlier, Police also confiscated 8,600 illegal fuel. 500 liters and 400 liters of diesel fuel were taken over from a tank that the owner had bought from one of the gas station in Sungai Raya Dalam, Pontianak.
Meanwhile, 7,700 liters of petrol were seized from a ship on the waters of Kapuas River, Teluk Barak Village, Kedamin Hilir Village, Putussibau Selatan District, Kapuas Hulu Regency.
Fuel accumulation in West Kalimantan has been common within the past month. Data from the West Kalimantan Regional Police showed that from January to early March 2012, 22 fuel cases of fuel accumulation have been exposed.
Sunday, March 4, 2012
Stock Market Deja Vu: Why It Feels Like 2011 All Over Again Read more: http://business.time.com/2012/03/02/stock-market-deja-vu-why-it-feels-like-2011-all-over-again/#ixzz1oCIsnR4a
Last year was a rollercoaster ride for the stock market. In 2011, the Dow Jones Industrial Average raced to a high of 12,810 in April before skidding to 10,404 in October. Then, in the final three months of the year, the Dow surged more than Rick Santorum on the campaign trail – adding a record 1,304 points, or almost 12%.
Now it looks like we may be in for more of the same. Market guru David Rosenberg makes a persuasive case to his private clients that 2012 bears a striking — one might even say eerie — resemblance to 2011. “Just about everything is mapping out last year’s manic behavior,” writes Rosenberg, chief economist and strategist for investment manager Gluskin Sheff & Associates in Toronto.
(LIST: Top 10 Scared Stock Traders)
Rosenberg is a guy worth listening to: The former chief economist for North America at Bank of America-Merrill Lynch was named the most accurate forecaster by MSNBC and economist of the year by Fortune magazine in 2011. I’ve been reading his highly influential daily email, “Breakfast with Dave,” for years. Here are some of the most compelling reasons to think 2012 could be 2011 redux:
Extraordinary levels of central bank support: In 2011, the stock market was living off the “fumes” from a special Federal Reserve Treasury bond-buying program, known as QE2. Some of the money the Fed released into the economy ended up in the stock market. Similarly, in 2012, the European Central Bank lent gobs of money to the banks at yearend in its own special lending program (dubbed LTRO), fueling markets so far as well. Why is that problem? When the flood of money from the central bank spending spree ends, the stock market is likely to falter, just as it did last year.
(MORE: Is This Stock Market Rally For Real?)
Dow Transports are starting to sputter: Most people keep an eye on the Dow Jones Industrials. But those in the know also keep an eye on other Dow indexes like the Transports as an economic bellwether. It includes companies like Fedex, whose fates are closely tied to the health of the economy. Last year the Transports weakened before the broader stock market. Shades of 2011: The DJIA just embraced 13,000, but the Transports are down 4%.
Treasury bond yields are ultra-low: Then, as now, the 10-year note remains stubbornly below 2%, another indication investors are betting on a weak economy. Indeed, in his testimony before Congress yesterday, Fed Chairman Ben Bernanke said growth would be modest, hampered by the depressed housing market and turmoil in Europe. Modest growth does not typically translate into improving corporate earnings—or an exuberant stock market.
Stock volume is low: Both in 2011 and 2012 the trading volume in stocks has been thin, which means that not all that many people are saying, yes!, we love the market. When volume is thin, prices swing much more wildly, giving the market a rollercoaster feel.
(MORE: Warren Buffett on Succession, Stock Buybacks, and Why He Doesn’t Like Gold)
Oil prices are gaining: Early in 2011 the jobless picture began to improve only to get slapped with higher gas prices and political uncertainty. Sound familiar?
Confidence is suspiciously high: Ready for another encounter with déjà vu? In February 2012, the Conference Board measure of consumer confidence measure unexpectedly jumped to 70.8 from 61.5 in January. Ditto February 2011: The survey unexpectedly shot up to 72 from 64.8. If that isn’t uncanny enough, Rosenberg notes that bulls now outnumber bears two-to-one. Last year the bull-bear ratio was nearly identical early in the year and presaged the market peak. When bears finally outnumbered bulls in October, the market bottomed. Beware the wisdom of the crowds.
Markets, of course, never shoot up without some pullbacks. But if investors are expecting a smoother ride for stocks in 2012 the signposts Rosenberg is training his lights on are saying not so fast! A ticket to the stock market this year might feel like a ride on the Coney Island Cyclone. Get ready for some heady highs and stomach churning dips.
MORE: For Chinese Advertisers, Nostalgia is Their New Secret Weapon
Read more: http://business.time.com/2012/03/02/stock-market-deja-vu-why-it-feels-like-2011-all-over-again/#ixzz1oCIyAZ27
Now it looks like we may be in for more of the same. Market guru David Rosenberg makes a persuasive case to his private clients that 2012 bears a striking — one might even say eerie — resemblance to 2011. “Just about everything is mapping out last year’s manic behavior,” writes Rosenberg, chief economist and strategist for investment manager Gluskin Sheff & Associates in Toronto.
(LIST: Top 10 Scared Stock Traders)
Rosenberg is a guy worth listening to: The former chief economist for North America at Bank of America-Merrill Lynch was named the most accurate forecaster by MSNBC and economist of the year by Fortune magazine in 2011. I’ve been reading his highly influential daily email, “Breakfast with Dave,” for years. Here are some of the most compelling reasons to think 2012 could be 2011 redux:
Extraordinary levels of central bank support: In 2011, the stock market was living off the “fumes” from a special Federal Reserve Treasury bond-buying program, known as QE2. Some of the money the Fed released into the economy ended up in the stock market. Similarly, in 2012, the European Central Bank lent gobs of money to the banks at yearend in its own special lending program (dubbed LTRO), fueling markets so far as well. Why is that problem? When the flood of money from the central bank spending spree ends, the stock market is likely to falter, just as it did last year.
(MORE: Is This Stock Market Rally For Real?)
Dow Transports are starting to sputter: Most people keep an eye on the Dow Jones Industrials. But those in the know also keep an eye on other Dow indexes like the Transports as an economic bellwether. It includes companies like Fedex, whose fates are closely tied to the health of the economy. Last year the Transports weakened before the broader stock market. Shades of 2011: The DJIA just embraced 13,000, but the Transports are down 4%.
Treasury bond yields are ultra-low: Then, as now, the 10-year note remains stubbornly below 2%, another indication investors are betting on a weak economy. Indeed, in his testimony before Congress yesterday, Fed Chairman Ben Bernanke said growth would be modest, hampered by the depressed housing market and turmoil in Europe. Modest growth does not typically translate into improving corporate earnings—or an exuberant stock market.
Stock volume is low: Both in 2011 and 2012 the trading volume in stocks has been thin, which means that not all that many people are saying, yes!, we love the market. When volume is thin, prices swing much more wildly, giving the market a rollercoaster feel.
(MORE: Warren Buffett on Succession, Stock Buybacks, and Why He Doesn’t Like Gold)
Oil prices are gaining: Early in 2011 the jobless picture began to improve only to get slapped with higher gas prices and political uncertainty. Sound familiar?
Confidence is suspiciously high: Ready for another encounter with déjà vu? In February 2012, the Conference Board measure of consumer confidence measure unexpectedly jumped to 70.8 from 61.5 in January. Ditto February 2011: The survey unexpectedly shot up to 72 from 64.8. If that isn’t uncanny enough, Rosenberg notes that bulls now outnumber bears two-to-one. Last year the bull-bear ratio was nearly identical early in the year and presaged the market peak. When bears finally outnumbered bulls in October, the market bottomed. Beware the wisdom of the crowds.
Markets, of course, never shoot up without some pullbacks. But if investors are expecting a smoother ride for stocks in 2012 the signposts Rosenberg is training his lights on are saying not so fast! A ticket to the stock market this year might feel like a ride on the Coney Island Cyclone. Get ready for some heady highs and stomach churning dips.
MORE: For Chinese Advertisers, Nostalgia is Their New Secret Weapon
Read more: http://business.time.com/2012/03/02/stock-market-deja-vu-why-it-feels-like-2011-all-over-again/#ixzz1oCIyAZ27
The Unemployment Paradox: Why the Conventional Wisdom About Job Seekers Is Wrong Read more: http://business.time.com/2012/03/02/the-unemployment-paradox-could-a-better-economy-make-jobless-rates-worse/#ixzz1oCICfwvS
American labor force participation — that is, the percentage of working-age persons who are employed or are looking for a job – has been down since the financial crisis in 2008, putting us on par with Europe, as I noted last year in my cover story on economic mobility. That’s been a big hit to the idea of America as a land of opportunity. Labor force participation in the U.S. now stands at only 63%. Lots of investors and economists believe that’s because so many job seekers out there during the Great Recession and the jobless recovery grew frustrated and gave up looking.
Remember that official unemployment rate calculations count people who are looking for work — but not those who have given up and stopped looking — as unemployed. As a result, when people give up looking for work, it can have the counter-intuitive effect of making the unemployment rate look better. And theoretically, the reverse can also be true — but here’s where the conventional wisdom goes astray: Now that the economy is truly expanding once again, many observers are predicting that formerly discouraged workers will flood back into the labor market and reverse the decline in unemployment that we’ve seen over the last few months.
(MORE: Why Manufacturing Can’t Solve The Jobs Problem)
Not so, says the macro-economic team at Barclays. They ran models showing that demographics, and especially retirement amongst baby boomers, has played a larger role in pushing the labor participation rate down than other factors have. “Only about a third of the drop in the labor force participation rate is accounted for by those who say they want a job, and only about 15% by those who want a job and are also of prime working age – i.e., between 25-54,” says the report issued Thursday. What’s more, historically, re-entrants into the labor force haven’t really played much of a role in changing the unemployment numbers.
(MORE: Like Microbreweries Before Them, Mini-distilleries are Sweeping the Nation)
That’s good news for President Obama, who needs the unemployment number to keep ticking down in order to ensure victory in November. What I wonder about, though, is this: If, as many economists predict, inflation rises, and if entitlements are eventually cut, how many of those 55 and older Americans will decide that they have to go back to work, whether they want a job or not.
I do think employment dynamics are changing in ways that are extremely hard to predict right now, thanks to a push for entitlement reform, a trend towards in-sourcing, and the increasing lifespan of people in wealthy countries. But I basically buy the Barclays idea that in the short term, at least, the idea of a surging labor force of formerly frustrated job seekers is an “urban legend.”
MORE: How a Fear of Foreigners Is Gripping Europe When Its Economy Needs Them Most
Read more: http://business.time.com/2012/03/02/the-unemployment-paradox-could-a-better-economy-make-jobless-rates-worse/#ixzz1oCIKSYmd
Remember that official unemployment rate calculations count people who are looking for work — but not those who have given up and stopped looking — as unemployed. As a result, when people give up looking for work, it can have the counter-intuitive effect of making the unemployment rate look better. And theoretically, the reverse can also be true — but here’s where the conventional wisdom goes astray: Now that the economy is truly expanding once again, many observers are predicting that formerly discouraged workers will flood back into the labor market and reverse the decline in unemployment that we’ve seen over the last few months.
(MORE: Why Manufacturing Can’t Solve The Jobs Problem)
Not so, says the macro-economic team at Barclays. They ran models showing that demographics, and especially retirement amongst baby boomers, has played a larger role in pushing the labor participation rate down than other factors have. “Only about a third of the drop in the labor force participation rate is accounted for by those who say they want a job, and only about 15% by those who want a job and are also of prime working age – i.e., between 25-54,” says the report issued Thursday. What’s more, historically, re-entrants into the labor force haven’t really played much of a role in changing the unemployment numbers.
(MORE: Like Microbreweries Before Them, Mini-distilleries are Sweeping the Nation)
That’s good news for President Obama, who needs the unemployment number to keep ticking down in order to ensure victory in November. What I wonder about, though, is this: If, as many economists predict, inflation rises, and if entitlements are eventually cut, how many of those 55 and older Americans will decide that they have to go back to work, whether they want a job or not.
I do think employment dynamics are changing in ways that are extremely hard to predict right now, thanks to a push for entitlement reform, a trend towards in-sourcing, and the increasing lifespan of people in wealthy countries. But I basically buy the Barclays idea that in the short term, at least, the idea of a surging labor force of formerly frustrated job seekers is an “urban legend.”
MORE: How a Fear of Foreigners Is Gripping Europe When Its Economy Needs Them Most
Read more: http://business.time.com/2012/03/02/the-unemployment-paradox-could-a-better-economy-make-jobless-rates-worse/#ixzz1oCIKSYmd
Mitch Daniels: Indiana Tornadoes As Serious As I've Seen As Governor
Indiana Gov. Mitch Daniels on Saturday morning toured the devastation unleashed by a swarm of tornadoes that killed 14 people in his state.
He spoke to CNN after viewing the wreckage in the town of Henryville.
"We're not unfamiliar with Mother Nature's wrath out here in Indiana," Daniels said. "This is about as serious as we've seen in the years that I've been in this job."
He spoke to CNN after viewing the wreckage in the town of Henryville.
"We're not unfamiliar with Mother Nature's wrath out here in Indiana," Daniels said. "This is about as serious as we've seen in the years that I've been in this job."
Newt To TPM: Never Mind Rush's Apology, How About Barack Obama's To Afghanistan?
TPM caught up with Newt Gingrich after a speech at Bowling Green University in Ohio and asked about Rush Limbaugh's apology to Sandra Fluke.
"I'm not paying attention," he responded.
Asked whether he thought he felt Limbaugh misspoke, Gingrich turned the question on President Obama.
"I'm not paying attention," he repeated."I'm paying attention to the president apologizing to people who killed Americans."
The line was a reference to Obama's apology to Hamid Karzai, president of Afghanistan for the burning of Korans by US troops, which he said was necessary to calm deadly violence against American troops that erupted over the incident.
"I'm not paying attention," he responded.
Asked whether he thought he felt Limbaugh misspoke, Gingrich turned the question on President Obama.
"I'm not paying attention," he repeated."I'm paying attention to the president apologizing to people who killed Americans."
The line was a reference to Obama's apology to Hamid Karzai, president of Afghanistan for the burning of Korans by US troops, which he said was necessary to calm deadly violence against American troops that erupted over the incident.
Romney Camp Says Santorum’s Ohio ‘Delegate Debacle’ Shows Major Problems
Mitt Romney may be running into trouble putting away Rick Santorum, but at least he’s running a fully functional campaign. That’s the argument his surrogates in Ohio made on Saturday at least, pointing to Santorum’s basic difficulties getting his delegates on the ballot as proof he’d wilt against President Obama’s elite re-election team.
According to Romney’s national counsel, Ben Ginsberg, Santorum’s ability to field a full delegate slate in competitive states ia “a true test, especially for Republican primary voters to look at, whether a candidate is ready for primetime.”
“What’s evident from what’s going to happen on Super Tuesday and beyond is that Rick Santourm flunks that test,” Ginsberg said in a conference call with reporters.
While several polls have shown Santorum leading Romney in Ohio, he failed to submit the necessary paperwork in three congressional districts needed to compete for their delegates, putting him at a serious disadvantage to Romney from the start. He also, like Newt Gingrich, failed to qualify for the ballot in Virginia entirely. All told, the Romney campaign estimates 16% of all Super Tuesday delegates are already out of play for Santorum. There may be some legal recourse for Santorum if he wants to try to claim those missing Ohio delegates later, but it will be complex and difficult.
“In the Fall, we know whoever the Republican nominee is will be going against one of the best, well-oiled political machines,” Hamilton County Commissioner Greg Hartmann, a Romney supporter in Ohio, told reporters. “This kind of ball drop at this stage of the campaign shows he’s not ready for primetime.”
Update: A spokesman for Santorum, Hogan Gidley, responded to TPM that the Romney campaign’s attack on their professionalism reflected an elitist effort to undermine their more grassroots campaign:
“The Romney campaign is just throwing another temper tantrum because they’re a little confused and frustrated as to why they can’t buy this election. I’m sure they thought that with all their Establishment friends and all the Establishment money and with the handpicked Establishment candidate, this campaign would really be a coronation for Mitt Romney. But they’ve just never understood that this election is not about who has the most money - or who has the most infrastructure. It’s about electing a President who inspires and believes in the American people instead of the government control. And on the biggest issues in this election, Mitt Romney sided with Barack Obama, and we just learned today, he actually encouraged Barack Obama to use Romney’s Massachusetts model for the government take over of healthcare. When a grassroots conservative Tea Party candidate like Rick Santorum threatens the Establishment with true conservatism and actual reform minded policies the Establishment resorts to namecalling and tearing down others.”
According to Romney’s national counsel, Ben Ginsberg, Santorum’s ability to field a full delegate slate in competitive states ia “a true test, especially for Republican primary voters to look at, whether a candidate is ready for primetime.”
“What’s evident from what’s going to happen on Super Tuesday and beyond is that Rick Santourm flunks that test,” Ginsberg said in a conference call with reporters.
While several polls have shown Santorum leading Romney in Ohio, he failed to submit the necessary paperwork in three congressional districts needed to compete for their delegates, putting him at a serious disadvantage to Romney from the start. He also, like Newt Gingrich, failed to qualify for the ballot in Virginia entirely. All told, the Romney campaign estimates 16% of all Super Tuesday delegates are already out of play for Santorum. There may be some legal recourse for Santorum if he wants to try to claim those missing Ohio delegates later, but it will be complex and difficult.
“In the Fall, we know whoever the Republican nominee is will be going against one of the best, well-oiled political machines,” Hamilton County Commissioner Greg Hartmann, a Romney supporter in Ohio, told reporters. “This kind of ball drop at this stage of the campaign shows he’s not ready for primetime.”
Update: A spokesman for Santorum, Hogan Gidley, responded to TPM that the Romney campaign’s attack on their professionalism reflected an elitist effort to undermine their more grassroots campaign:
“The Romney campaign is just throwing another temper tantrum because they’re a little confused and frustrated as to why they can’t buy this election. I’m sure they thought that with all their Establishment friends and all the Establishment money and with the handpicked Establishment candidate, this campaign would really be a coronation for Mitt Romney. But they’ve just never understood that this election is not about who has the most money - or who has the most infrastructure. It’s about electing a President who inspires and believes in the American people instead of the government control. And on the biggest issues in this election, Mitt Romney sided with Barack Obama, and we just learned today, he actually encouraged Barack Obama to use Romney’s Massachusetts model for the government take over of healthcare. When a grassroots conservative Tea Party candidate like Rick Santorum threatens the Establishment with true conservatism and actual reform minded policies the Establishment resorts to namecalling and tearing down others.”
Romney Takes Washington Ahead Of Super Tuesday
Mitt Romney picked up another win Saturday night in Washington state, taking 36 percent of the vote with 77 percent of precincts reporting. The win gives Romney some much-needed momentum heading into a critical Super Tuesday contest.
The victory capped a week in which the former Massachusetts governor also won Arizona and a close contest in Michigan. It also provided the Romney camp a jolt of positive news after the candidate slipped up in an interview with a local Ohio reporter and was forced to spend multiple days clarifying his position on a controversial measure to limit birth control coverage.
“I’m heartened to have won the Washington caucuses, and I thank the voters for their support,” Romney said in a written statement shortly after the win. “Every day that passes with Barack Obama in the White House is a day in which America’s recovery from the economic crisis is delayed.”
At stake in Washington are 43 delegates, but the caucuses had no affect on their selection. That will be determined by other GOP events in the coming weeks.
Still, he results were a disappointment for Texas Rep. Ron Paul, who had staked his hopes on winning Washington and ended up competing for second place with about 25 percent, narrowly edging former Pennsylvania Sen. Rick Santorum. Paul has not won any states to date.
Paul was the only candidate to appear in Washington on Saturday, while the others focused their campaigns on Tuesday’s big event. He aggressively organized and recruited supporters in the lead up to the caucuses, hoping a win in Washington could propel him to the front of the pack nipping at Romney’s heels.
Saturday’s voting proved to be a big event for the Washington GOP. With some counting still to go, the party had already tallied the votes of more than 40,000 caucus goers. That put turnout far ahead of 2008 Republican caucuses, which saw about 12,000 people participate.
The boost appeared to cause problems in at least one part of the state, where it was reported that some 1,500 people were turned away from the caucuses on Saturday morning.
The victory capped a week in which the former Massachusetts governor also won Arizona and a close contest in Michigan. It also provided the Romney camp a jolt of positive news after the candidate slipped up in an interview with a local Ohio reporter and was forced to spend multiple days clarifying his position on a controversial measure to limit birth control coverage.
“I’m heartened to have won the Washington caucuses, and I thank the voters for their support,” Romney said in a written statement shortly after the win. “Every day that passes with Barack Obama in the White House is a day in which America’s recovery from the economic crisis is delayed.”
At stake in Washington are 43 delegates, but the caucuses had no affect on their selection. That will be determined by other GOP events in the coming weeks.
Still, he results were a disappointment for Texas Rep. Ron Paul, who had staked his hopes on winning Washington and ended up competing for second place with about 25 percent, narrowly edging former Pennsylvania Sen. Rick Santorum. Paul has not won any states to date.
Paul was the only candidate to appear in Washington on Saturday, while the others focused their campaigns on Tuesday’s big event. He aggressively organized and recruited supporters in the lead up to the caucuses, hoping a win in Washington could propel him to the front of the pack nipping at Romney’s heels.
Saturday’s voting proved to be a big event for the Washington GOP. With some counting still to go, the party had already tallied the votes of more than 40,000 caucus goers. That put turnout far ahead of 2008 Republican caucuses, which saw about 12,000 people participate.
The boost appeared to cause problems in at least one part of the state, where it was reported that some 1,500 people were turned away from the caucuses on Saturday morning.
Friday, March 2, 2012
Indonesia Stock Market Opens Higher
Most Asian markets today were on the rise following supportive cues from Wall Street.
Indonesia's stock market rebounded on Friday as positive sentiments helped share prices to climb.
The composite index opened higher at 3,962.91, following a rise in pre-opening prices of 3.968,27.
An analyst fro PT Equator Securities, Gina Novrina Nasution, said most Asian markets today were on the rise following supportive cues from Wall Street.
"The positive sentiments from the US and Asian markets today cause the domestic market to improve," she told VIVAnews, March 2.
Gina recommends take on shares of PT Perusahaan Gas Negara Tbk (PGAS), PT PP London Sumatra Indonesia Tbk (LSIP), PT Bank Mandiri Tbk (BMRI), PT Bank Rakyat Indonesia Tbk (BBRI), and PT Bank Central Asia Tbk (BBCA).
Indonesia's stock market rebounded on Friday as positive sentiments helped share prices to climb.
The composite index opened higher at 3,962.91, following a rise in pre-opening prices of 3.968,27.
An analyst fro PT Equator Securities, Gina Novrina Nasution, said most Asian markets today were on the rise following supportive cues from Wall Street.
"The positive sentiments from the US and Asian markets today cause the domestic market to improve," she told VIVAnews, March 2.
Gina recommends take on shares of PT Perusahaan Gas Negara Tbk (PGAS), PT PP London Sumatra Indonesia Tbk (LSIP), PT Bank Mandiri Tbk (BMRI), PT Bank Rakyat Indonesia Tbk (BBRI), and PT Bank Central Asia Tbk (BBCA).
Dhana Denies Cooperation with Six Companies
“It is still too early to declare whether there is any crime or not.”
Dhana Widyatmika’s attorney denied all stories published by the media on his client. The attorney said that it is still too early to assess any criminal element in this case.
The attorney also denied Dhana’s cooperation with the companies he handled while he was working in the Directorate General of Taxes.
“It is still too early to declare whether there is any crime or not,” said Attorney Daniel Afredo while assisting Dhana in the AGO office, Friday, March 2.
Daniel said Dhana has various sources of income.
Dhana was only transferred from the Directorate General of Taxes to Jakarta Tax Office for a month. Dhana’s wife, DA, is an employee of the Directorate General of Taxes.
Daniel continued that the AGO has confiscated several of his client’s assets, including his showroom. Meanwhile, the showroom’s director has also been questioned.
When asked about the news on the six companies that Dhana watched over, Daniel could supply answer in details.
“We have no idea about it yet,” said Daniel.
Dhana Widyatmika’s attorney denied all stories published by the media on his client. The attorney said that it is still too early to assess any criminal element in this case.
The attorney also denied Dhana’s cooperation with the companies he handled while he was working in the Directorate General of Taxes.
“It is still too early to declare whether there is any crime or not,” said Attorney Daniel Afredo while assisting Dhana in the AGO office, Friday, March 2.
Daniel said Dhana has various sources of income.
Dhana was only transferred from the Directorate General of Taxes to Jakarta Tax Office for a month. Dhana’s wife, DA, is an employee of the Directorate General of Taxes.
Daniel continued that the AGO has confiscated several of his client’s assets, including his showroom. Meanwhile, the showroom’s director has also been questioned.
When asked about the news on the six companies that Dhana watched over, Daniel could supply answer in details.
“We have no idea about it yet,” said Daniel.
Govt Should Set Minimum CNG Price Disparity
“Countries that have implemented CNG best set [the disparity] at around 60 percent.”
CNG Association of Indonesia said the Indonesian government should set the minimum price disparity between compressed natural gas (CNG) and premium at 60 percent.
“Countries that have implemented CNG best set [the disparity] at around 60 percent,” said Secretary General of CNG Association of Indonesia, Danny Praditya, on Thursday, March 1.
He said 30 CNG private companies in Indonesia are now in operation. Nonetheless, prices and infrastructure have been the problems in developing CNG in the nation.
“The government must really make calculation on the economic price of CNG,” he explained.
If the price of premium fuel is raised to Rp6,000 per liter, it is not going to reach the 60 percent disparity with the CNG’s price. However, the effort could be the first step toward CNG conversion.
He cited the use of CNG in Thailand, that was developed within 5 years. Around 250 thousand vehicles are now using CNG and the country is equipped with 500 CNG stations with a variety of incentives and monitoring.
CNG Association of Indonesia said the Indonesian government should set the minimum price disparity between compressed natural gas (CNG) and premium at 60 percent.
“Countries that have implemented CNG best set [the disparity] at around 60 percent,” said Secretary General of CNG Association of Indonesia, Danny Praditya, on Thursday, March 1.
He said 30 CNG private companies in Indonesia are now in operation. Nonetheless, prices and infrastructure have been the problems in developing CNG in the nation.
“The government must really make calculation on the economic price of CNG,” he explained.
If the price of premium fuel is raised to Rp6,000 per liter, it is not going to reach the 60 percent disparity with the CNG’s price. However, the effort could be the first step toward CNG conversion.
He cited the use of CNG in Thailand, that was developed within 5 years. Around 250 thousand vehicles are now using CNG and the country is equipped with 500 CNG stations with a variety of incentives and monitoring.
Australian Facing Death Penalty in Bali
Another drug smuggler was again foiled by the Customs at Ngurah Rai Airport in Bali on Tuesday, Feb 28. An Australian man named Edward Norman Myatt (55) was arrested when he was detected to have the possession of around 72 capsules (71 capsules containing hashish of 113 grams, and 1 capsule containing meth powder of 7 grams) in his stomach. The total weight is 120 grams.
The price of hashish in the market is around Rp600 thousand. Meanwhile, 1 capsule of 7 grams meth powder is Rp2.5 million per gram. Edward is part of an international narcotic network.
Head of Ngurah Rai’s Customs Supervision & Service, I Made Wijaya, said Edward was caught on Tuesday afternoon at around 2 PM shortly after he arrived at Ngurah Rai Airport, Denpasar. The construction worker had just arrived from Bangkok, Thailand. “He carried several bags,” said Made Wijaya, Friday, March 2.
Several officers immediately raised their suspicion towards Edward, who looked nervous. He even tried to avoid the body scanner at the international arrival terminal.
When Edward passed the scanner, bizarre items kept in his stomach appeared on the screen. Further test proved the items to be illegal drugs. “There are approximately 72 capsules inside the suspect’s body,” he said.
Edward was then brought to BMC Hospital in Kuta to confirm the contents of the capsules through X-ray examination and also to remove the capsules from his stomach.
“All capsules were removed within four days. The capsules went out with his feces. He was given natural drinks such as milk and papaya juice,” explained Wijaya.
“The suspect is charged under Article 112 Law No.35/2009 on Narcotics with the maximum sentence of death penalty,” said Wijaya.
The price of hashish in the market is around Rp600 thousand. Meanwhile, 1 capsule of 7 grams meth powder is Rp2.5 million per gram. Edward is part of an international narcotic network.
Head of Ngurah Rai’s Customs Supervision & Service, I Made Wijaya, said Edward was caught on Tuesday afternoon at around 2 PM shortly after he arrived at Ngurah Rai Airport, Denpasar. The construction worker had just arrived from Bangkok, Thailand. “He carried several bags,” said Made Wijaya, Friday, March 2.
Several officers immediately raised their suspicion towards Edward, who looked nervous. He even tried to avoid the body scanner at the international arrival terminal.
When Edward passed the scanner, bizarre items kept in his stomach appeared on the screen. Further test proved the items to be illegal drugs. “There are approximately 72 capsules inside the suspect’s body,” he said.
Edward was then brought to BMC Hospital in Kuta to confirm the contents of the capsules through X-ray examination and also to remove the capsules from his stomach.
“All capsules were removed within four days. The capsules went out with his feces. He was given natural drinks such as milk and papaya juice,” explained Wijaya.
“The suspect is charged under Article 112 Law No.35/2009 on Narcotics with the maximum sentence of death penalty,” said Wijaya.
Electricity Rate Suggested to Rise in Phases
“Fuel price rise is already a burden, not to mention the increase in electricity rate.”
Minister of Energy and Mineral Resources, Jero Wacik, said that the new electricity rate should be set phases.
“Fuel price rise is already a burden, not to mention the increase in electricity rate,” said Jero in Jakarta today, March 2.
This year’s Revision of State Budget Draft (RAPBN) will specify gradual pricing of electricity rate, which will be set in 3 stages.
“I have yet to take notice about it on the Revised Draft of State Budget. Maybe it will be raised by 3 percen in each stage,” he said.
The government will also redraft the Indonesian oil lifting assumption from 950 thousand barrels per day to 930 thousand barrels per day in the Revised Draft of State Budget.
For the Indonesian oil price (Indonesia Crude Price/ICP), the government will raise the ICP assumption from US$90 per barrel to US$105 per barrel.
“Actually, it’s already US$112 per barrel in February. My assumption is US$90 per barrel. If anyone said there is no need to raise the price, well, we can’t,” he said.
Minister of Energy and Mineral Resources, Jero Wacik, said that the new electricity rate should be set phases.
“Fuel price rise is already a burden, not to mention the increase in electricity rate,” said Jero in Jakarta today, March 2.
This year’s Revision of State Budget Draft (RAPBN) will specify gradual pricing of electricity rate, which will be set in 3 stages.
“I have yet to take notice about it on the Revised Draft of State Budget. Maybe it will be raised by 3 percen in each stage,” he said.
The government will also redraft the Indonesian oil lifting assumption from 950 thousand barrels per day to 930 thousand barrels per day in the Revised Draft of State Budget.
For the Indonesian oil price (Indonesia Crude Price/ICP), the government will raise the ICP assumption from US$90 per barrel to US$105 per barrel.
“Actually, it’s already US$112 per barrel in February. My assumption is US$90 per barrel. If anyone said there is no need to raise the price, well, we can’t,” he said.
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