Rising inflation, BI rate move slightly Stay There
Bank March 26th, 2010
Despite record inflation higher than expected, namely equal to 0.84 percent (month on month / mom), and 3.75 percent (year on year / yoy), but the estimated level of the reference interest rate Bank Indonesia (BI rate) is for 6.5 percent will not be affected.
This was revealed by chief economist of Bank Mandiri Mirza Adityaswara, in the event of Securities Brokers Association Seminar Indonesia (IPEI) themed ‘Test Bank Bailout of the Century Perspective of Politics, Law, and Economics’ at the Hotel Nikko, Jalan MH Thamrin, Jakarta, Monday (1 / 2 / 2010) night.
“Inflation was recorded 0.84 per cent, but the BI rate will not be affected. It was higher than consensus estimates of Bank Mandiri own approximately 0.5 percent and year on year (yoy) was estimated at 3.5 percent, but exit 3, 75 percent, “said Mirza.
He explained, there are two main reasons why the BI Rate was not expected to rise following the increase in inflation. First, according to the inflation rate is still in the BI calculation. “Inflation was 3.75 percent within the range of BI until the end of the year,” he explained.
Second, he explained, if the cause of high inflation comes from the supply side. Namely the increase in food prices, which may occur due to lack distibusi well, and so forth.
“The cause of the supply side rather than demand side. To the solution must be of the supply side, such as improving the distribution of food, rather than raising interest rates. Raising the interest rate that can be done when it happens because of demand (demand),” he said.
For that, Mirza said, the government needs to do is fix the food distribution, which is also done by improving infrastructure. According to him, the BI rate to remain. Because the later will rise also because many countries will raise interest rates.
“We are still at the Fed Rate. Fed Rate until the end of the year can not change. Australia has raised interest rates, China has raised the minimum compulsory deposits (GWM), India also has raised GWM. We’re not in a position to loosen, but not yet to raise, “he explained.
However, he explained, if the worst scenario for the BI rate was increased by 75 basis points until the end of a 7.25 per cent from current 6.5 percent.
Bailout funds recorded in the accounting Century Bank Pearl
Bank March 26th, 2010
Bank Mandiri chief economist Mirza Adityaswara confirmed if bailout funds for Rp6, 7 trillion is not lost. The fund currently recorded in the accounting Pearl Bank (formerly Bank Century).
“It’s still in the balance of Century Bank, or now Bank of the Pearl,” said Mirza, in Seminars Indonesian Association of Securities Brokers (IPEI) themed ‘Test Bank Bailout of the Century Perspective of Politics, Law, and Economics’ at the Hotel Nikko, Jalan MH Thamrin , Jakarta, Monday (1/2/2010) evening.
He explained that currently the Bank’s record profit Pearl of Rp250 billion. Possible profit in five years could reach Rp1, 25 trillion. “The value of the book can be Rp2 trillion in five years,” he explained.
Furthermore, even if the bank is sold in five years, funds for Rp6, 7 trillion will be able to return. “BCA is now worth four times the price of the book, BTN cost twice the price of the book. Well, if Century could be sold two times book value price price Rp3 trillion, about three times so it Rp6 trillion,” he explained.
When compared with the fit, he explained that in November 2008 the value of the guarantee raised to Rp2 billion, and will have as much Rp5, out of 3 trillion and that will not be returned. In fact, he continued rating agency Fitch Rating credit rating raised Indonesia, but Greek as well as Spanish lowered.
“It’s raised Indonesia’s rating, the international recognition of the management of fiscal, monetary, and makropemerintah Indonesia. Including the financial sector in securing the IV-quarter 2008,” he said
Climate Change, the IMF Provide USD100 M
Finance March 26th, 2010
The International Monetary Fund (International Monetary Fund / IMF) plans to allocate USD 100 billion to several countries to help reduce the impact of climate change.
“The new growth will reduce carbon expenditures,” said IMF Managing Director Dominique Strauss-Kahn, in front of politicians and business leaders in a meeting at the World Economic Forum in the Swiss ski resort Davos, as quoted by AFP on Monday (1/2/2010) .
“The effort to face the changing weather can not be barred” only because we were not able to meet the financing needs, “he added.
Developing countries do not have sufficient funds to adapt it, and the ability of developed countries to pay is also limited. The reason these countries burdened by debt after the funds are used to handle the financial crisis.
“Therefore it is necessary to think” out of the box “to the problem of funding. We need innovative ways to finance it,” Strauss-Khan said.
The IMF, he said, will give some ideas, funds obtained from the Reforestation Fund / Green Fund is intended to finance the mylar USD100 dollars (72 billion euros) a year which aimed to overcome the problem.
On climate change meeting in December for 11 hours, which was organized by the United Nations, formed Copenhagen Accord. Agreement to limit global warming to limit to two degrees Celsius (3.6 degrees Fahrenheit), the threshold set by many climate scientists.
In the meeting also requires rich countries to pay $ 30 billion, in the next three years, and USD 100 billion per year in 2020. The fund is to assist poor countries to combat climate change and deal with the impact of these changes.
ICB Bank Bumiputera target achievement
Credit & Loan March 26th, 2010
- ICB Bank Bumiputera target achievement in this year’s credit to Rp4, 74 trillion. Credit was up 30 percent of the achievement at the end of 2009 for Rp3, 645 trillion.
“We are targeting the over-all increase in credit this year by 30 percent compared to last year. The increase was supported by the improving economy this year,” said Vice President Director Dian A Bumiputera ICB Soerarso, the ICB Building Bumiputera Cikini Jakarta, Monday (1 / 2 / 2010).
For credit target this year will contribute from Rp3 consumer credit, 51 trillion and the rest will be backed by mortgages (KPR). Until 2009 then, the company of consumer credit reached Rp2, 7 trillion. Consumer credit is typically contribute approximately a total of 65 percent of corporate loans.
“But for this year would be lowered to 60 percent and the rest of the company will boost commercial credit and micro finance,” said Dian.
Head of Product & Business Bumiputera Development ICB Adie B Soerjohoesodo explains mortgage (mortgage) for this year is expected to rise. That’s because the company just launched a mortgage program with a 8.88 percent interest per year.
“For this we expect a mortgage can get a new loan of 500 billion. While the achievement of mortgages until 2009 and then for Rp810 billion,” said Adie.
For mortgages with interest is 8.88 percent, up Adie, will be charged to customers for a year (fixed). After that, rates will return to the market price by 10 percent.
Outside of these special programs, ICB Bank Bumiputera also have other mortgage installments. Among them for mortgages of less than Rp250 million with interest 10,99-11,99 percent, mortgage Rp250 million and Rp1 billion with 11.49 percent interest, and in the Rp1 billion for 10.99 percent. “The mortgage rate applicable to 20-25 year tenor,” he added.
Cover the deficit, the Government Co-financing Prepare
Finance March 26th, 2010
The government was preparing a financing scheme with (co-financing) through sekma Public Private Partnership (PPP) for infrastructure investment deficit in 2010-2014.
With co-financing scheme PPP, it is estimated the funds obtained for Rp407 trillion. Meanwhile, the need for infrastructure investment over five years is estimated at Rp1.429, 18 trillion, or five percent of GDP and the central government is only able to provide funds for Rp768, 16 trillion, or 53.74 percent.
This was conveyed by Minister of Planning / Head of Bappenas Alisjahbana Armida, in Hearings Meeting (RDP) with the Commission XI of DPR RI, in Building MPR / DPR RI, Senayan, Jakarta, Monday (1/2/2010).
Co-financing scheme involves the preparation of a series of documents by the government in order to make the selection of business entities and governmental cooperation partners in providing infrastructure.
These documents include the feasibility prastudi documents, the plan of cooperation, the project financing plan and sources of funds, offering a plan of cooperation which includes the schedule, and how the assessment process.
“An estimated cost to finance the preparation of these documents will be for one to three percent of the value of the project will be cooperated,” he added.
In addition to the private sector, the government also will maximize cooperation with local government (Local Government), in which the government is expected to help finance the infrastructure investment needs for Rp511, 16 trillion and the rest can be financed by the state.
“The rest of Rp112 trillion is expected to be financed by private and state enterprises,” he said
