Indonesia Business Headlines Wednesday November 21, 2014

JAKARTA, Indonesia - Nov. 20, 2014 - PRLog -- HEADLINE

Foreign Exchange Debt & Rights Issue Preferred To Achieve Funding

JAKARTA—Corporation is predicted to choose new shares issuance and foreign currency loan in order to obtain financing source amid tight liquidity in the country.

According to PT BNI Securities Analyst I Made Adi Saputra, it is reasonable for corporation listed or not to conduct rights issue and seek foreign exchange funding at this moment.

COMMODITY

ARC Establishment Acceleration To Control Rubber Supply

JAKARTA—  Establishment of Asean Rubber Council (ARC) will probably be accelerated to slow the decrease of natural rubber price which reach the critical level due to a large increase of big player of world rubber trade.

It is signed by the inclusion of Cambodia, Laos, Myanmar and Vietnam in the International Tripartite Rubber Council (ITRC) forum which originally only has three world biggest rubber producers as its member namely Indonesia, Thailand, and Malaysia.

BANK & FINANCE

CONSUMER LOAN: Banks Lower Vehicle Loan Target

JAKARTA – Banking industry didn’t set high targets for vehicle loans in the next year in response to the fuel price hike.

The data from the Indonesian Banking Statistics (SPI) published by Financial Services Authority (FSA) showed that motor vehicle loan (KKB) experienced a slowdown in growth since the second quarter of 2014.

ECONOMY

Advertising Expenditure To Increase Next Year

JAKARTA – Advertising expenditure next year is expected rebound by 15%, after this year is expected to slow down to 8%, driven by world’s political and economic conditions.

Chairman of the Indonesian Association of Advertising Company (PPPI) Harris Thajeb said that such optimism was due to the political climate certainty and subsidized fuel price hike policy, so that business players were able to calculate the necessary budget for advertising expenditure.

ECONOMY

SUBSIDY DIVERSION: Govt To Use Provident Fund For Six Programs

JAKARTA – The government will use the provident fund of fuel subsidy in 2014 and 2015 for at least six priority programs.

Finance Minister Bambang P.S. Brodjonegoro said President Joko Widodo had instructed him to focus on six programs of basic infrastructure and social protection.

ENERGY & MINING

Govt Promises Incentive For Gas Station Builder

JAKARTA—Government is offering incentive for company that builds gas station in order to boost conversion of fuel to gas following the increase in fuel price.

Coordinating Minister for Maritime Affairs Indroyono Seosilo said the government will soon determine the tariff increase for inner city public transportation. At the same time, he said the government will encourage transfer of fuel use from gasoline to gas.

INFRASTURCTURE

Irrigation Network As Priority

JAKARTA— The government is going to focus the diversion of IDR4 trillion fuel subsidy to the development and management of national irrigation instead of to the development of fresh water and housing.

Director of Planning, Directorate General of Water Resource of Public Works-Public Housing Ministry Widiarto said that they propose to allocate IDR2.8 trillion of total diversion fund for irrigation development and management.

INDUSTRY

WEST JAVA: An Unfriendly Area For Investor, Apindo Said

JAKARTA— The business players consider that West Java is increasingly inhospitable. They also suggest the investor to choose central Java due to more conducive employment climate.

Such consideration occurred due to the Indonesian Employers Association (Apindo) threat to leave the wage board membership. It’s reared that the membership resignation plan will be threat to the industrial area occupancy particularly in Bekasi, West Java.

AGRIBUSINESS

Local Beef Loses Market To Imported Beef

JAKARTA— Ministry of Agriculture is discussing the policy to import feeder cow and beef following the excessive imports of those two commodities.

Director General of Animal Husbandry and Health, Syukur Iwantoro, said surplus of imported beef occurs since the amount of imported beef exceeds the national need and local beef cannot keep up with the demand.

Here is the headlines news of Bisnis Indonesiaepaper (business.bisnis.com), the biggest economic daily in indonesia.