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President Susilo Bambang Yudhoyono's lucky number is 9. He was born on 9-9-1949. His cellular phone number is +62-811109949 where people could send short messages (but don't expect direct reply!). He help established Partai Demokrat on September 9.Today, he read 59 pages of the New Year 2007 speech. What's inside?

Focus in 2007: Reducing poverty, create more jobs, higher economic growth (6% +, rotate this 180 degree we'll get 9%), etc. How? Wish he could do 180-degree turn on leadership style.
"Oh, Cm'on, be realistic!" one reader commented. "You're not fair. You should turn 180-degree your writing style too. Can you do it?" other friend said.
"Chinese love 9, lucky number. So, SBY would likely win easily in 2009," a soothsayer said.

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Another refinancing for Energi Mega

The management of PT Energi Mega Persada (ENRG) Tbk will ask shareholders approval on assets pledge for refinancing scheme in the meeting scheduled February 15. No immediate figures on the amount of new loans to be raised.

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Arwin Rasyid's letter to The President

Dear Mr President,
First of all, please accept my apology for writing this letter which may be not proper enough from political or administration point of few. Especially because so many intricating issues that need your fullest attention. I write to you simply because I have nobody to talk to regarding my job as CEO of the most profitable state-owned company PT Telkom Tbk.

Bapak Presiden, you're the one who convinced me to take the job two years ago with target of USD30 billion market capitalization by 2010. But since I started walking into the company's hallway, I never feel secure. I tried to please the board of commissioners & workers with higher salaries/bonuses. I tried to be nice to everybody, but board of commissioners dropped a bomb last August with the vote of no confidence letter. Since then I know that I would never trust them anymore however hard I may try.
Bapak Presiden asked me to clean up the company from KKN practices. Hope you're aware that one of the largest TV station is owned by one of our largest, uniterrupted, supplier for many years. One of Jakarta's governor candidates collected money for campaign from his wife, one of our contractor. A former minister maintain his lucrative business-political power inside the company and is collecting huge money for a president candidate to challenge you in 2009.
I have to admit, we're long way to go to reach the ideals of what Telkom should be. Performance wise, we're blessed with the monopoly, even though legally the competition has been launched several years ago. Most of our fellow citizens still have no access to telephone line.
Market capitalization jumped almost 80% last year, even though that's not a result of significant improvement in fundamentals.
We have nothing to worry about the numbers. I'm sure USD30 billion cap would be easy to get. But I'm deeply worried about future direction of the company. We're heading to shareholders meeting scheduled next month or so. I really have no problem if you ask me to go if that's for the best of the country.
But if you want me to stay, I need your full support. I can't work with those (BOC & BOD) who have no trust in me. Sorry to say that this is a situation of me or them, can't be both. Unless all of us sign an agreement before you that we'll work as a team.
Bapak President, once again, thank you for giving me the trust. Please send my best regards to Ibu Ani.

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Lapindo raises The White Flag

Lapindo Brantas Inc says Rp1.3 trillion is the maximum amount of compensation it can provide to all parties hurt by hot mudflow in Sidoarjo, East Java, Tempointeraktif.com reported. Pardonez Mois. Indonesian people (220 million) are invited to enjoy the hot mud treatment in Porong for Rp25,000/pac (minus Adam Air one way ticket!).
"If the amount of costs increased with higher number of people affected by the mudflow, we can't provide above the approved amount at Rp1.3 trillion. That's our maximum capability. Beyond that, we'll fully hand over to government," said Yuniwati Teryana, VP for human resources & relations at Lapindo Brantas Inc.
So far, Lapindo had disbursed Rp39 billion of compensation to 3,320 families. The maximum amount mentioned by Lapindo is well below the losses of Rp7 trillion estimated by some NGOs.
It's increasingly clear, all of us would have to underwrite the cost of a catastrophe which, according to the latest study, was merely caused by improper drilling operation and nothing to do with earthquake that hit Yogyakarta as claimed by certain groups.
Regarding the costs, initially government declared all costs should be Lapindo's full responsibility. "If they ask government's money, we'll reject," VP Jusuf Kalla said in September.
But in late November, things started to shift when president SBY declared the hot mudflow as disaster. "The state should start to take care," Energy Minister Purnomo Yusgiantoro quoted the president.
But we have different figures here. From my archieve, Lapindo should start to pay compensation of Rp1.3 trillion on January 5, 2007 till March 2007. Another Rp2.5 trillion of compensation should also be paid by Lapindo, starting March 2007. So, what Lapindo really wanted to say with 'Rp1.3 trillion is our maximum capability'? Who will bear the remaining Rp2.5 trillion? State budget?
How about Minister of Public Works' statement that Lapindo should bear the cost of relocating the toll road (Rp1.3 trillion) or compensation claim from 29 factories (Rp327 billion), exporters who have to pay additional cost of Rp1 billion/day due to the closure of the turnpike, or PT Telkom's claim of Rp18 billion?
Let's refresh our memory with Bakrie Family's statement early on that they won't walk away from the liabilities of Lapindo. Lapindo is owned by Bakrie Family and we shall not let Lapindo say, "that's it, take care this shit, we have no more money!" when we know exactly the family is sitting over billion USD worth of assets, right? What's the difference with Soeharto/IMF style of massive banking bailout in 1998-2002?
Considering what Bakrie Family will do, I think they've started to sell shares in some of its listed affiliates, and on the other end buyers are waiting to grab hot money as well. My fellow taxpayers will only get 'hot mud' treatment! Hope you enjoy, Merci Bocoup!

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Homo floresiensis

Florida State University anthropologists confirmed "The Hobbit" fossil found in my hometown Liang Bua, Manggarai is a new species of human being called Homo floresiensis. It is thought to have been contemporaneous with modern humans (Homo sapiens) on the Indonesian island of Flores. I wonder whether we're from such different species. It's not a big deal!

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Bumi to enter Newmont NT?

Koran Tempo reported that PT Bumi Resources Tbk had established PT Gerbang Emas, a JV with West Nusa Tenggara administration to buy 3% shares of gold mining company PT Newmont Nusa Tenggara for Rp1.09 trillion. In the next four years, NNT should divest further to make locals control minimum 51%. But the hotest topic in town is Jusuf Merukh's 20%

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Harvey Nichols

PT Mitra Adi Perkasa Tbk established a new subsidiary named PT Hampiran Nusantara with initial investment Rp100 billion to manage UK-based Harvey Nichols stores in Indonesia. Harvey Nichols Group Limited is now owned by the Hong Kong-based businessman Dr. Dickson Poon whose retail businesses extend to North America, Europe, Japan, China and South East Asia. MAPI also run Debenhams stores. Next in line is Harrods! And, London Casino. We'll call the customers, Londoners! Later we might see The Saks Fifth Avenue.

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Intel Outside!

I met Craig Barrett, Intel Corp CEO, 7 years ago in Hong Kong. I asked him about the company's future plan in the region, especially about Indonesia. I remember he recognized the importance of Indonesia thanks to its huge population and considers to invest here.

Since then I never heard of any real investment from the company here. But I'm jealous with Malaysia when I read the story of Intel's huge investment in Kulim Hi-Tech Park last week. Intel doubled its investment to make USD3 billion in one decade & thousands of new job (highly paid, I guess).
Meanwhile, Gateway Business Park in Cavite, a province adjacent to Metro Manila, is home to USD1 billion investment from Intel to assemble chips. Intel injected another USD100 million last year.
As if these are not enough to add my jealousy, I just realized that late last year Barrett announced USD1 billion investment in Ho Chi Minh City. At least 4,000 new jobs created.
I spent several months in Vietnam for three consecutive years (1994-1996) of reporting on the country's economic reform. Travel to many cities & country sides, I wrote hundreds of articles where I warned my readers about the emergence of Vietnam and that the country would eventually leapfrogging us in almost every sector based on my observations. "But who cares, I'm just nobody," I told myself.
"We're grateful to Indonesians, for teaching us how to grow rice & coffee," one official at agricultural ministry told me in an interview. Just months after our conversation, Vietnam surpassed Indonesia as both rice & coffee exporters. And if we read newspapers in the agriculture section recently, Vietnam is currently the major supplier of rice for Indonesia, at least to maintain the buffer stock and to keep low inflation intact.
Back to Intel, what we got?
The biggest 'investment' from Intel so far is when Intel lead a consortium to build USD30 million Internet network in Aceh in a joint effort with UK's Global Marine System Ltd. That's why, to remind everybody about the fact that we're not on Intel's investment list, I suggests government to oblige all PCs sold here to replace the logo Intel Inside to Intel Outside!

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Cabinet reshuffle gossip

Various sources gave different information on the much talked about cabinet reshuffle. These sources heard of stories told by those have been summoned by president SBY to ask their views. First of all, regarding the reshuffle itself, they got mixed signal even though most of them believe the president might do that in a matter of weeks.

The president asked many people about wide range of issues, such as energy, state-owned enterprises, infocom, transportation, infrastructure, etc.
"My feeling, the president would do that, somehow after Valentine," a government official said. That's common knowledge. In fact many observers predicted the reshuffle would be in March.
PAN Chairman Sutrisno Bachir, a close friend of SBY, claimed few days ago that the president would announce the reshuffle in late March.
Early this month, Golkar Party in its New Year statement announced by its executive and House Speaker Agung Laksono urged president SBY to reshuffle the cabinet immediately.
But some says the president once told the ministers in a cabinet meeting that they'll be in the team till 2009. Minister for health affairs even claimed this week that SBY gave her 'good' grade and believes she'll stay.
"There are two hot spots, SOEs & energy. Golkar really want to take both. They want to have Burhanuddin Napitupulu at SOE & Agusman Effendi at energy," a political expert said.
But I think it would be too much to accommodate for SBY. Even if he may finally kick Sugiharto out of the cabinet, he has his own candidate for the job. Several names are being tipped, Herwidayatmo (former director of World Bank/Bapepam chairman), Arwin Rasjid (Telkom CEO)& Agus Martowardojo (Mandiri CEO).
"If SBY takes SOEs, Golkar & VP's camp might have the chance to get energy ministry. That would be the tough one, because Purnomo has really close relationship with SBY," another analyst said.
SBY might also replace ministers with minor role to maintain political accommodation. Abdurrahman Wahid's PKB might ask SBY to replace Saefullah Yusuf (for jump ship, exit PKB and joins PPP). PAN urges SBY to replace economic ministers while maintaining three ministers from the party (Siti Fadillah Supari, Bambang Sudibyo, and Hatta Rajasa).
But Golkar executive Ferry Mursidan in his op-ed at Koran Tempo today urged president SBY to replace minister of religious affairs for haj scandal, minister of transportation for various accidents, and minister of small-medium enterprises as well.

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Tirtamas major comeback

Hashim Djoyo, Al Njoo, and Honggo are partners who established Tirtamas, one of the strongest group during Soeharto years. They lost almost all of their assets to settle huge debts to IBRA. But the group gets out of the financial collapse and comeback in a big way. Giant petrochemical assets at PPA (successor of IBRA) such as polypropylene producer Polytama and aromatic center Tuban Petrochemical may well on the top of the list.

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Corporate Briefs

PT Surya Citra Televisi (SCTV), a subsidiary of PT Surya Citra Media Tbk, confirmed a financing plan, but the size and timing are yet to be decided. Media reported a possible of Rp600 billion bond to finance expansion and working capital.

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Frictions inside the cabinet

In the last few weeks we've read war of words between Information & Communication Minister Sofyan Djalil and State Minister for Research & Technology Kusmayanto Kardiman over Microsoft licensing & open source. Tempo reported this week of how president SBY was so 'mad' about the situation. How about other conflicts?

Another dispute is on settlement of unstoppable hot mudflow from Lapindo Brantas Inc's Banjarpanji drilling well in Porong, Sidoarjo, East Java. Source of conflict is how much the state budget would be deployed to settle third parties liabilities after March as President Decree issued last year obliged Lapindo to bear the costs for six months.
Minister of Energy and Mineral Resources Purnomo Yusgiantoro as the chairman of national team established by president to solve the problem has yet to come up with clear mechanism especially the gap between Lapindo's capability and the total losses to be covered.
There are two groups inside cabinet regarding the issue. Those who want to help Bakrie family (considering the group's financial support in 2004 election) and those who are increasingly suspicious about Bakrie's political support in 2009.
"The cabinet is clearly split on Lapindo. Pressures have been mounted towards MOF Sri Mulyani to approve the government bail out program," one Palace source said.
There are also pressures from DPR to reduce MOF's power with the plan to spin-off Custom & Excise Office. "Two camps inside the cabinet are also fighting for that," another source said.
The recent management brawl at Jamsostek is also part of conflicts inside the cabinet about who will get what. "Right from the appointment of Pontjowinoto, the cabinet has been split on the issue. I could understand if both the minister of SOEs and minister of manpower trying to hide the tension. But those familiar with inner circle politics could sense that," other government official said.
The same conflict at state-owned PT Telkom between cabinet members who support Arwin Rasyid and those who want him out.
Both camps inside the cabinet are also looking for stronger ties with different groups inside Indonesian military especially after the latest movement of some retired generals.
Golkar's move to hire high-profile officers such as Miranda Gultom (deputy governor of Bank Indonesia) and Anwar Nasution (Chairman of Supreme Audit Agency) is also seen in that perspective.
"For sure, the president don't want to be alienated from elite politics no matter how strong public support on him. We'll see his responses in these hot issues," a political analyst said.

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The JSX Roller Coaster

JSX composite index dropped 40 points so far today after few days of strong rebound following last week slump when investors dump PGN shares.

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Jamsostek management brawl

Jan 22, MSOE Sugiharto issued a decree to revoke Jamsostek's board of commissioner decision to oust Iwan Pontjowinoto from his posisiton as CEO. Sugiharto, a friend of Pontjowinoto, resumed the former Sharia Economy Society (MES) chairman to his position with off duty status.

The ministry hopes the latest decree would ultimately end the 1.5 year internal dispute at Jamsostek. Sugiharto appointed Wahyu Hidayat, official at the ministry, as interim deputy president director in charge of daily operation of Jamsostek.
The company's workers union regrets Sugiharto's decision even though some say that would be the most sensible thing to do to prevent further conflict in the state-owned company. Workers union supports BOC's decision to have Pontjowinoto ousted. But SOEs Workers Union Federation and SOEs legal aid institute (LBH BUMN) urged Sugiharto to replace BOC and Ahmad Andi (the one appointed by BOC to be interim CEO) instead. They even plan to file a report of power abuse to Corruption Eradication Commission (KPK).
As a worker with regular payment to Jamsostek for almost 15 years, I don't really care who will be the CEO or BOC of the company or which political group he/she is associated with. I care only about the return Jamsostek give for my investment over the last 15 years and the rights of millions of fellow workers in the country to get payments easily without being corrupted.

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Mandiri after tax profit may grow 300%

Following BNI's statement early this week that its profit after tax for 2006 grew 35% on loan growth of 6%, today, Bank Mandiri, the largest bank by assets, announced a possible 300% growth in profit after tax to Rp2.4 trillion for the financial year 2006. It's sad that the bank's credit grew only 9.1% last year while net interest margin (NIM) surged almost 20%.

It's a good news for investors, especially those who hold Mandiri shares (price of Rp1.640 in Dec 05 - Rp2.900 as of Dec 06, outperformed index with 77% gain).
Mandiri managed to cut its non-performing loan through major restructuring on debtors like Raja Garuda Mas (USD589 million), Agro Pantes (Rp2.88 trillion), Sumber Mitra, payment from Kiani, Apac etc even though several parties criticize some of these deals.
Domba Mas plans to refinance its Rp1.5 trillion debt, Bosowa to be restructured (Rp1.66 trillion), etc. Altogether, Mandiri's net NPL has dropped significantly to around 7% as of Dec 06, leaving the bank with further efforts to push NPL below 5% by the end of 2007.
What's next? We hope the bank could play more important role in funding new job creation projects.

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Energi Mega flip-flop, watchout!

Scientific study confirmed that mud vulcano erupted in Lapindo Brantas Inc's Banjarpanji working area was mainly caused by gas drilling, AFP & The Jakarta Post reported today. So, it's not due to earthquake in Yogyakarta as claimed by some 'experts' that pushed government to consider the mudflow as national disaster covered with state budget. On the other end, Energi Mega Persada, Lapindo's parent announced another flip-flop on the Rp3.8 trillion fund raised through rights issue in late 2005. Initially it was loan from Energi to its subsidiaries, including Lapindo, then changed into equity (conversion of loan), and now is asking to change that to loan again. Wanna more? Better watchout!

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Corporate actions update

PT Pakuwon Jati Tbk will inject USD80 million into PT Artisan Wahyu using proceeds of USD110 million issued by Pakuwon Jati Finance BV to finance Superblok Gandaria project.

Pakuwon raised USD110 million from international bond issued in November 2006 with maturity in 2011 and yield 12%/year. Gandaria project is consisted of shopping center (232,484 m2), office space (99,642 m2), four-star hotel (39,154 m2), and two condo towers with 72,765 m2. Construction to start this year and completion by fourth quarter 2009. No worries about oversupply?
Meanwhile, PT Medco Energi Internasional Tbk through its wholly owned subsidiary, Medco Far East Limited/PT Medco E&P Malaka, and its partners, Premier Oil Sumatra (North) BV, have signed a Share Sale and Purchase Agreement with ConocoPhillips to acquire Conoco's 50% working interests (through CPAL, 100% owned by Conoco) in Block A Production Sharing Contract located in Aceh province for USD72 million. Medco & Premier will equally own 50% of CPAL.
In April 2006, Medco and its partners, Premier, and Japex Block A Ltd, a subsidiary of Japan Pertroleum Exploration Co Ltd, have acquired 100% shares of Mobil Block A Limited from ExxonMobil Block A Investment Limited, which was also the holder of 50% working interest of Block A PSC. Such acquisition provided Medco, Premier, and Japex working interests of Block A PSC to the amount of 16.67%, 16.66%, and 16.67%, respectively.
Acquisition of CPAL raised Medco's ownership in Block A to 41.67%, similar to Premier's.
Meanwhile, PT Budi Acid Jaya Tbk will build a 5.7 MW biogas power plant with USD7 million investment in Lampung, Sumatra.
PT Bank Negara Indonesia (BNI) Tbk estimated 35% growth in profit after tax to Rp1.9 trillion for the year 2006 on 6% loan growth.

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A little chat with AL CAPONE

I got a surprise email from someone unepected, Alphonse Capone (born Jan 17, 1899) from a place far far away he described as a "cool, with wireless internet service" place. He declined to mention exactly whether the place is hell or heaven. "I can't tell you. But the place I live has been connected with WWW. I read your blog everyday for hell sake!"

"Hi Al, it's been a long time since the last time we met. You left this WWW exactly 60 years ago, January 25 I guess. Tell me what's happened since then in your new mansion!"
"I'm fine man. I'm too old to do business, so I dedicated most of my time & energy for phylantrophy things," Al said.
"Cool! Do your place looks like Florida where you live sometimes or Chicago where you identified with the crimes?"
"It's a bit of combination of winter in Chicago and hot summer days in Florida."
"Wow. Must be lots of fun, having fun with the money you collected for so many decades."
"Yeah, I donated some to universities so they could have better education than mine. I gave scholarships to journalists too! Oh, do you know that I have one professorship under my name in a respected university in US?"
"I heard that, Al. You're generous! How's the business?"
"I'm not dealing with gambling anymore or liquors. As you see, my businesses are clean. We cut forests, process them to pulp and then paper for your kids' school book & notes or your newspaper. We then cultivate palm trees all over the already cleared areas to produce cooking oil. See, your fellow citizens fond of fried foods."
"Good for you!"
"Lot's of changes in the last 60 years, thanks to globalization. I have global operation now. But again, none of them involved in gambling or drugs."
"Your family?"
"My first daughter has just graduated, cum laude, from Wharton School. Her younger sister is studying there too."
"How about the boy?"
"He's in charge of my business in Great Wall."
"What business?"
"We're producing & selling paper and cooking oil."
"Do they have palm oil plantations there?"
"No, you're moron! Palm oil is tropical tree!"
"Sorry Al. So, where do you get the materials?"
"From your country. In fact I have the largest plantation in Sumatra. You have to see someday. Sorry, can we hold a second? I need to go to the restroom."
"By the way, if you're born again, will you do different things?"
"Well, most likely I'll have similar friends. I'll work for guys like Torrio. I might still kill Bugs Moran. But I will not hire Eddie O'Hare so I don't have to stay behind the bars for seven years! I could enjoy my old age in Florida, spend more of my money to finance research on penicilin!"
"What things that you regret the most?"
"For my failure to ask legislators & congressmen to freeze IRS!"
"I guess you guys have no IRS over there?"
"Actually I run a lucrative business here, in your world might be considered illegal."
"What's that?"
"I run a blog, porn blog! I just posted real porn like ME-YZ. I have gambling blog as well, looks like London Casino if you ever visit that."
Ok Al, I'm tired already. Let's chat again tomorrow. Send my regards to Mr Torrio and Lucky Luciano. Ciao!

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State banks under fire over RGM restructuring

Late last week, the chairman of Supreme Audit Agency (BPK) criticized state-banks over terms & conditions applied in Raja Garuda Mas USD1.45 billion debt restructuring. Yesterday, majority of members of House Commission IX mounted pressures toward state-banks to review the deal signed recently.

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Krakatau to build new power plant

PT Krakatau Daya Listrik, a subsidiary of steel manufacturer PT Krakatau Steel, is expanding its power generating capacity with a new coal-fired power plant (300 MW capacity) which may cost around USD300 million.

Amir Sambodo, president commissioner of Krakatau Steel told me this morning that the new power plant will be coal-fired to meet increasing demand as the group expand facilities.
"KDL operates 400 MW gas-fired power plant at the moment. The new plant will be 2x150 MW," he said.
Krakatau wants the new plant will be built with BOT scheme. "We're hoping to accomplish the pre-qualification bidding before the end of this quarter," he said.
Krakatau has several corporate actions this year. The pipe manufacturer subsidiary PT KHI Pipe will enter stock market with IPO of up to 30% shares next quarter. "We're conducting beauty contest to select financial advisors for KHI Pipe," he said.
Most of the funds raised through that IPO will be used to finance capacity expansion.
Another subsidiary, tinplate manufacturer PT Latinusa, is looking for strategic partner to buy 10% of its shares before it launch IPO next year.

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Arbitration goes ahead, KPC divestment status quo

As ICSID had accepted (Bisnis Indonesia today) East Kalimantan province appeal for arbitration process over divestment of PT Kaltim Prima Coal (KPC) last week, the agency might impose status quo on PT Bumi Resources Tbk's plan to divest up to 30% shares in KPC scheduled for accomplishment early next month.

East Kalimantan provincial administration has taken its case against coal mining firm PT Kaltim Prima Coal (KPC) to the international arbitration through the Washington-based International Center for Settlement of Investment Disputes (ICSID) in April 5, 2006 during the due diligence process of KPC and Arutmin Indonesia divestment to PT Borneo Lumbung Energi at USD3.2 billion. Borneo failed to close the deal in August.
At the moment, six investors are conducting due diligence. If the arbitration process goes ahead, the status quo will be maintained until the case is over. It would potentially postpone the divestment of KPC's 30% share.
But Bumi Resources president Ari S Hudaya told JSX today that the arbitration process will not change Bumi's ownership in KPC.

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Iwan Pontjo ousted, Sugiharto rejects

Board of commissioners of state-owned social security company PT Jamsostek ousted Iwan Pontjowinoto from his post as CEO, Kompas Cyber Media reported.

The decree was signed by Prijono Tjiptoherjanto (president commissioner) with approval of three other commissioners last night. Why?
The board argued no chemistry between Mr Pontjowinoto, former managing director of state-owned investment bank PT Danareksa, and stakeholders. Jamsostek workers union had filed petition to replace Pontjowinoto. Jamsostek managed Indonesian workers fund of UD6 billion.
The board appointed Andi Ahmad M. Amien, director at Jamsostek, as interim CEO. What a mess in the board changes of SOEs in the last few months after what's happened at Bukit Asam, PGN, etc.
It's interesting to see MSOE Sugiharto's response to the crisis, especially the fact of their close relationship. Muhammad Said Didu, secretary to the ministry of SOEs, said Sugiharto sent a letter to BPKP (development & finance supervisory agency) asking for an audit on Jamsotek. I bet Sugiharto is buying time with the move.
Didu admitted the board of commissioners have the rights to oust Pontjowinoto according to the company's deed. "But whether the conditions met, I don't know yet."
On Sunday, Sugiharto defended Pontjowinoto saying his friend can't be ousted, unless he committed crime acts. The minister also defended Jamsostek's performance under Pontjowinoto's leadership.
SOEs Workers Union (SP BUMN) rallied behind Sugiharto and calling for replacement of Jamsostek board of commissioners instead. SP BUMN accused Jamsostek's workers union (SP Jamsostek) of politicking the replacement of Pontjowinoto.
Well, I bet both sides are playing politics. We need strong leadership of President SBY to end the dispute. Wouldn't he?

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PGN updates

As predicted, state-owned oil & gas company PT Pertamina has demanded renegotiation with PGN due to major delay of South Sumatra West Java gas pipeline. Financial impact for Pertamina is huge because the company should service USD270 million loan to JBIC. In contrast to PGN management's explanation that the delay is three months, Pertamina claims the delay is actually nine months.

"The initial schedule for operation was June 2006, but now PGN says March 2007," Rony Gunawan, Pertamina executive said.
PGN rejected the demand for price negotiation but willing to pay compensation (fines & take/pay clause). Pertamina plans to supply 250 MMSCFD. Slightly lower compensation would go to ConocoPhillips which supplies 230 MMSCFD as no fines applied.
The biggest chunk of the compensation will be for PGN's unability to absorb minimum 80% of gas supply under the take/pay clause. Under the contract with gas suppliers, PGN should absorb at least 150 MMSCFD in the first year of SSWJ pipeline. So, 80% means 120 MMSCFD. PGN revised its plan that the first three months, the company could only absorb 30 MMSCFD.
I think PGN should explain in details all the compensations to Pertamina & ConocoPhillips, financially. PGN did explain the issue in analyst meeting early this week that the low absorption this year would be compensated with bigger gas take next year (make-up gas). But when asked whether PGN should pay, the management said yes, but in 2008.
Meanwhile, Bapepam has started insider trading investigation over PGN shares that led the 40% crash last week.

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Wiranto's scary observation

Antara quoted general (ret) Wiranto's various statements on Thursday. Among others, Wiranto worried about the country's security status. He described the current situation is somewhat similar with days before Soeharto's downfall in 1998 when he was military commander. Is it a political statement in his capacity as chairman of the newly established Hanura Party or based on his observation as someone familiar with conflicts ih the military structure?

Wiranto expressed his uneasy feeling about the situation he described as 'the straw under fire'. He worried about security outlook especially "if someone instigate the fire."
"For the time being, pray is the only medicine. Almost all predictions and analysis stated that something would happen, but nobody knows when. The situation is worrysome, that's why I appeal to those in power to fix it. We're in a very dangerous situation," Antara quoted Wiranto without details of who made the predictions and analysis nor intelligence report to support his statement.
Scary, isn't it?
But he dismissed speculation of military-supported coup d'etat. How about Revolution Committee established by former army chief of staff general (ret) Tyasno Sudarto? "It's not a physical revolution, it's a revolution of the heart," the former Golkar candidate for president in 2004 election. Despite his failure to pass the first round (third behind SBY & Megawati), no sign that Wiranto let his ambition dim to be Numero Uno. That's probably why he decided to exit from Golkar (the party most likely will support the chairman/VP Jusuf Kalla to contest in 2009) and established Hanura.
The State Palace is unbelieveably busy to respond the maneuver of retired generals as if no important issue need its utmost attention. I really don't get it. Five hundreds people went on a rally in front of The Palace's gates could forced the president to run the administration from his private residence? How about 61 million people who voted for him in 2004?
I'm sure millions out of the 61 voters were unemployed, expected SBY to deliver his promises to open up more jobs, higher economic growth (7% annually, not 5.2% average), but they may still unemployed. Worse, millions of the employee-voters are now unemployed. That would lead to social revolution, may be not during SBY's term in office thanks to the nation's remain strong social fabric system (though it's eroding due to modernism, urbanization, hedonism etc). So, Mr President, do something!

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Qatar Telecom, Temasek's shield for Indosat

I thought the Russians who got the shares. "No. Russia may have the money thanks to energy bonanza. But Temasek needs social & political protection for Indosat. Better to have someone from Middle East if Temasek needs shield for Indosat. Qatar Telecom fit with the requirement. With 25%, nothing they could do. Temasek still control Indosat and get the protection it wanted," an analyst said. What's the rationale?

Qatar Telecom acquired 25% shares of Asia Mobile Holdings, STT Telemedia (Temasek's subsidiary) controls the remaining 75%. Asia Mobile owns 41% shares of Indosat.
"Well, some government officials including VP Jusuf Kalla & SOE Minister Sugiharto raised the issue of buyback Indosat. But with Qatar Telecom as indirect shareholder of Indosat, the issue will die out," the analyst said.
What do you mean actually?

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The House of Gamblers

Two years ago, US Congressman Bob Ney's trip to London raised ethical flags in US politic. Ney attended meetings, one over dinner at a casino with Winfield and Fouad al-Zayat, a Syrian-born businessman who heads FN Aviation. Zayat is one of London's biggest gamblers, betting hundreds of thousands of dollars on roulette in a sitting. These days, our legislators' trip to London last month has reportedly something of the kind.

Ney reported that he won $34,000 at the very same London casino on an initial bet of $100. In 2002, Ney had reported at least $30,000 in credit card debt. In 2003, he reported he'd paid it off. His lawyer says Ney won that money gambling on a separate trip to London, not the one involving FN Aviation.
In contrast, according to the media reports, the gamblers, suspectedly from Indonesi's House of Representatives (DPR) lost 60,000 poundsterling at Hard Rock Casino.
The group, led by Sutan Bathoeguna from Partai Demokrat (president SBY's party) dismissed the rumor. Bursah Zarnubi from Partai Bintang Reformasi, who is in political competition with Zaenal Ma'arif, ousted deputy chairman of The House, also denied strongly the allegation.
Well, casino is one thing. Our parliament building, for decades, has been the 'real & the largest casino' under the banner of "Democracy". There we could find slot machines and online gambling services. The rule: The bigger your bet, the more welcomed you are! Sorry bro! (To my cousin, a parliament member)
"You have committed a contempt of parliament with this posting," my cousin said.
"Well, it's like when Gus Dur called parliament members as kindergarten students," I replied.

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Bakrie offloaded 504 million Bumi shares

CMA Pte Ltd, a company related to Bakrie family, offloaded 504 million shares of PT Bumi Resources Tbk. As a result, its ownership reduced from 10.52% to 7.92%. Credit Suisse Singapore Branch holds Bumi shares owned by CMA Pte Ltd. Credit Suisse provides loans to Bumi Resources, but Bumi repeatedly denied that it use CS loans to finance the shares buyback in the last few months.

According Bumi Resources report to JSX on Monday, the company had bought back 960 million shares until January 11, half-way to the maximum amount allowed (1.94 billion).

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Lippo's energy business

Auric Pacific, Singapore-listed company controlled by Lippo Group, acquired China Energy Limited---the largest dimethyl ether (DME) producer in China---last month through conversion of loans. Five years ago Hong Kong-listed Lippo China Resources Ltd partnered with InterGen & El Paso to build 724 MW power plant in Fujian Province, China. A decade ago, Lippo's name was connected with Mission Energy in Paiton project. And now?

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What's happened with Dr Sjahrir?

April 14, 2005, economist Dr Sjahrir met President Susilo Bambang Yudhoyono at The State Palace and confirmed his appointment as president's advisor for economic affairs. But on January 15, 2007, the Harvard-educated economist-turned-politician (he is the chairman of Perhimpunan Indonesia Baru Party) was among the group of protesters known as Gerakan Cabut Mandat SBY-JK (Movement to Revoke SBY-JK's Mandate). What's happened?

Let's refresh our memory with Dr Sjahrir's statements after the 2005 meeting with SBY. "My job will be assisting government in institutional building to achieve economic growth target, eradicating poverty, creating new jobs, and accelerating investment," he said that time.
For sure I never heard of his follow-up statements since. Especially after his long-time ally Aburizal Bakrie replaced in a cabinet reshuffle back in December 2005. Dr Boediono, Wharton School-graduated economist took the helm as coordinating minister for the economy with finance minister Dr Sri Mulyani Indrawati(Illinois-graduated) as his closest ally. We could safely predict that since then President SBY might rarely listen to Dr Sjahrir's advise. But we never heard of termination of his role as president's economic advisor.
Dr Sjahrir's position has been marginalized further with the establishment of another team of advisor led by Marsilam Simanjuntak, which sparked political tension between SBY and JK.
But Dr Sjahrir quickly clarified his participation in the January 15 rally led by his old friend Hariman Siregar, as explained in his party's website. He said he was there to commemorate Malari (1974 student rally). Both Sjahrir & Hariman were key student leaders in Malari 1974.
"But when Hariman directed the rally to The State Palace, I stopped here in Bundaran HI," he said.
Still, we could sense that Sjahrir is not happy with he might have told the president. "Government is only thingking of macro-economy improvement. People need real popular policy like cheap rice, employment, and poverty eradication," he said.
So, either Dr Sjahrir's access to the president is not like when he started to 'work for government' or the president listen too many advises, all of them seems great, but consume most of his time/energy to digest and as a result very few strategic decisions have been made.

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The House recommends Laksamana probe

A special committee of The House of Representatives (DPR) investigating irregularities of divestment of Pertamina's two oil tankers back in 2004 recommends a probe against former SOE Minister Laksamana Sukardi for alleged corruption, Detik.com reported.

Anti-Monopoly Commission launched a massive investigation over the case and found all parties involved of guilty (Pertamina, Goldman Sachs, Equinox, and Frontline) for colluding to favor a certain bidder during the open tender.
Deputy Chairman of The House's special committee Sutan Bhatoegana recommends The Corruption Eradication Commission (KPK) and Attorney General's Office (AGO) to immediately investigate corruption allegation on Laksamana's involvement in the tender.

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Harry Tanoe's maneuver at CMNP

Harry Tanoesoedibjo's PT Bhakti Investama Tbk bought 180.3 million shares (9.01%) of turnpike operator PT Citra Marga Nusaphala (CMNP) Tbk on the last trading day of 2006 at Rp1345/share, days after PT Jasa Marga announced its plan to offload almost 270 million shares of CMNP. On Dec 26, I posted the news about Jasa Marga's divestment. Initially I thought it's Tutut (Soeharto's daughter). "No, it's Harry Tanoe and Robby Sumampouw," a friend said. Robby's son Ievan Danar Sumampouw owned 5.13% shares as of Dec 31.

CMNP reported to JSX last week that as of Dec 31, Jasa Marga owns 17.78% shares, followed by UBS (7.2%), Redmington (5.23%), and Ievan Sumampouw (5.13%). On Jan 11, CMNP told JSX that as of Jan 3rd, Jasa Marga ownership reduced from 355.76 million shares to 352.56 million, and further declined to 84.57 million (4.23%) as of Jan 5. Jasa Marga divested the shares through bookbuilding, limited to less than 100 investors on Dec 26-27. No information available who bought the shares. Today its price jumped to Rp1580.

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Sukanto tax evasion: An expanded investigation

Tax office has established a team to probe alleged tax manipulation (evasion) at Asian Agri Group owned by Indonesia's richest man (Forbes list) Sukanto Tanoto. The team will work hand-in-hand with Corruption Eradication Commission (KPK) and Financial Transaction Authority (money laundering watchdog), Koran Tempo reported today. Go for it! Sukanto replied: Catch Me if You Can!

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Djarum controls 92,18% Farindo Investment

Farallon Capital and Alaerka Investment (controlled by Djarum Group) changed ownership structure at Farindo Investment (Mauritius) Ltd which controls 51.18% PT Bank Central Asia (BCA) Tbk, an official at Bank Indonesia said today.

"Under the new structure, Alaerka controls 92.18% shares in Farindo while Farallon the remaining 7.82%," the officer said.
Initially, Alaerka only owned 9.36% while Farallon at 90.64%. According to BCA's financial report in September, Farallon Capital, Robert Budi Hartono & Michael Bambang Hartono are the ultimate shareholders of Farindo Investment. With the transfer, Alaerka now has indirect ownership of around 46% at BCA which as market capitalization of USD6.8 billion.
Jahja Setiaatmadja, CFO at BCA admitted the change. "Yes, the management received the letter from our shareholders about the change and we had reported it to Central Bank and Bapepam," Jahja said when I contacted for confirmation.
Both my source at Central Bank and Jahja don't know the value of the transaction. "It's beyond our authority. It's a matter between shareholders. But one thing for sure, there will be no management or governance change at BCA," Jahja said.
"The transaction is not on BCA shares. Farindo would still controls 51.18% shares in BCA. That's why they have no obligation to disclose the transaction," an officer at Bapepam argued.
According to the latest report of BCA registered shareholders to JSX on January 5, 2007, as of December 31, 2006, foreign entities control 93% shares. BCA share price closed at Rp5,000 on Monday trading.

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Bumi is confident on KPC-Arutmin divestment

PT Bumi Resources Tbk is confident that it could close the divestment deal of 30% shares in two coal mining subsidiaries PT KPC & Arutmin before February 9. But investment bankers & analysts doubt that would happen. "They're just want to pump up the price," an analyst said. But one investment banker close to Bakrie family said "It's true difficult to get strategic investor who want to buy 30% shares of KPC & Arutmin. But it's depend on the arrangement, let say the new investor will control the marketing & cash-flow."

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Be Cool, Mr President!

President SBY seems an overtly-sensitive person when he 'emotionally' reacted to criticism on his leadership (undecisive & too much focus on his own image). He wasted more than two years of his presidency entertaining such criticism. Everytime he looks like a woman with PMS whenever people criticize.

As reported by almost all newspapers today, SBY responded straight the critics, especially from former president Megawati who accused SBY for paying too much attention on his image and a rally of 1,000 people scheduled today in front of the State Palace.
"I think, more than 60% of the eligible voters elected him as the president and he should rely on them, focus more on his promises to those who voted for him, not to 1,000 protesters," a political analyst said this morning.
"Media should let people know who is working for the country," SBY complained.
"Well, people voted him to work for them, no need to complain about that. SBY should not acts like those who criticize, walk his talks" the analyst replied.
And, Be Cool!

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PGN crash, insider trading

I got some calls early Friday after I posted the information about major delay of gas pipeline linking South Sumatra & West Java (SSWJ) built by PT Perusahaan Gas Negara (PGN) Tbk. I didn't realize that information had been around for a while and triggered almost 38% drop in the share price. I got the information on Thursday evening, like everybody else.

"It's a mini Enron," an analyst at European-based investment bank said.
"What's up?"
"Just imagine almost 40% drop in days after government divested 5% shares at Rp11,300."
"I thought the whole market has been under global pressure."
"No, it's specific Indonesia & PGN. Some of us think PGN might hide more information about its performance in their balance sheet!"
"I heard the management with their MSOP & employees with their ESOP had the information kept for themselves for so long. You gotta investigate this, a potential insider trading case," an analyst for US-based firm said.
"Wish I could. Do you have data to support?"
"We could provide!"
"That's great. BTW, it must be a blessing in disguise for the Malaysian investor who claimed that he offered to buy PGN shares at Rp12,000 and government's advisors declined the offer, right?"
On Friday, right after many aware of the PGN situation, 186 million shares changed hands to make it the single largest transaction in the market at Rp1.4 trillion. Macquarie Securities dumped 57 million shares, followed by Deutsche and CLSA at 17 million and 14.7 million shares respectively.
On Sunday, PGN management denied accusations of hiding material information, including the 3-month delay of SSWJ.
It looks all fine if you read the press statement. PGN predicts gas delivery would increase significantly from 338 MMSCFD in 2006 to 555 MMSCFD in 2007 and 919 MMSCFD in 2008. But the management didn't disclose financial impact of the delay, including claims from third-parties (gas suppliers & customers).

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Corporate actions update

PT Bank Artha Graha controlled by Tommy Winata & Sugianto Kusuma to issue new shares in a bid to strengthen the bank's capital. The 840 million shares are offered at nominal value of Rp110.88. As of August, the bank has total asset of Rp10.2 trillion.

Meanwhile PT Perusahaan Gas Negara (PGN) Tbk reported the delay of three months of commercial operation of South Sumatra West Java gas pipeline from initial schedule by December 2006. PGN argued the delay was mainly due to social problems, especially land acquisition, in its early stage of construction.
DIA Holdings, a minority shareholder of nickel producer PT Inco Tbk, plans to file lawsuit against CVRD (which acquired INCO Ltd in October 2006), PT Inco Tbk, and Bapepam.

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Wiranto joins anti-Exxon movement

General (ret) Wiranto, chairman of Hanura Party, has joined with an anti-ExxonMobil movement. He attended the seminar at parliament building hosted by the movement's leader Marwan Batubara who is close to Fuad Bawazier (former Soeharto's finance minister, now an executive at Wiranto's party).

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Buying out Singapore apartments

A friend of mine, an investment banker, has just bought an apartment in Singapore for USD3.5 million. My other friend, a broker, bought USD5 million property there last year, but his lawyer managed to took away the money, so he failed.

I know these guys make a lot of money out of the deals. Still, I want to know how. "It's simple, honey! I work for a foreign bank as advisor for a buyer in a deal, but I also build relationship with the buyers. There I could get lot more," one of them said.

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Another bank merger

A listed bank with asset slightly above Rp10 trillion is working on a merger with privately-held bank with asset around Rp5 trillion. The merger is likely to happen this year after significant transactions in both banks. Meanwhile, a bank with asset well above Rp100 trillion will announce a major corporate action soon.

Indonesian banking system clearly needs further consolidation to improve its efficiency. High operating costs & losses from non-performing loans are major issues in the banking system that caused huge margin between Central Bank's benchmark rates and lending rates of above 6%.
We're expecting some mergers this year. State Bank of India (SBI), for example, is expected to merge two banks it acquired last year (Indomonex & Swadesi) or Rabobank's Haga & Hagakita.

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Air Canada also vying for Garuda

There are at least four companies that will compete to be the strategic partner of ailing flag carrier PT Garuda Indonesia Airways. They are Texas Pacific Group (TPG)/Newbridge, Lufthansa, Air Canada and one name I don't know.

Other names have been mentioned before such as KLM, Thai Airways, Emirates, or Qantas. "There will no preferred bidder. Government want a competitive bidding," people close to Garuda said.
While state-owned enterprises ministry repeatedly expressed its preference for IPO of SOEs, in Garuda's case, strategic partner is the preferred choice because the company has yet to accomplish its restructuring. "IPO is not a choice. Garuda have to restructure its debts," he said.
But when I asked whether the cabinet is solid on the strategic partner option, he said, "so far, yes. But we're not sure."
MSOE Sugiharto had announced the plan to privatize Garuda Indonesia many times. In 2005, Sugiharto said Garuda to be privatized in 2006. We're in 2007 now. And I could imagine stiff competition and possible strong opposition from certain groups (management, workers union, political parties, pressure groups etc).

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Indonesia's Yuri Orlov

I bet most of you have seen Lord of War with Yuri Orlov (Nicholas Cage) as the arms dealer with his brother Vitaly (Jared Leto) as partner. So, brothers-in-arms. "Yuri doesn’t believe in concepts like “right or wrong.” He doesn’t believe that things are black or white. Yuri lives in the shades of gray, making us all wonder if we’re in there with him," George Epps wrote in his review (Brothers in Arms) back in 2005.

Reading an article in TRUST magazine this week, I found Indonesia's Orlov in Mr RM Soeryo Goeritno, arms dealer, born in Blitar, East Java, graduated from Moscow's Gubkin Institute, and had experience in arms supply to various countries in Middle East (Iran, Iraq, Suriah, and Afghanistan).
But he is not alone. He mentioned a name, Nicholas (Niko), Flores-born, as one of the key arms dealer in the country. Ah, Flores man, like me. Unfortunately I have no information about this Orlov from Flores. ou can add the list with those jailed in US last year. It's a lucrative business!

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PLUS Expressway's major inroads

Malaysia's PLUS Expressway Berhad has made major inroads into Indonesian toll road projects with the acquisition of 55% share in PT Lintas Marga Sedaya, the holder of the biggest concession in the Trans Java Expressway that may cost USD600 million. The subsidiary of Khazanah is also competing in bids for another three toll road projects. Now I realized what a Khazanah executive told me last month. "We have a dream to operate an integrated expressway system here like what we have in Malaysia," he said. Will the dream come true? Who are the key local partners?

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Children of cabinet members, what they do?

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Wilmar & Synergy: Amalgamation of plantation business in Indonesia

Two palm oil giants have been emerged with Wilmar's acquisition of PPB Oil and the merger of Guthrie, Sime Darby & Golden Hope into Synergy. Both have strong operations in Indonesia and Malaysia, but it's Singapore who get most of the gains. What?

The merged entity under Synergy will manage about 600,000 hectares of plantations, second to unlisted Malaysian state plantation firm Felda with 800,000 hectares. It will have a combined market capitalisation of US$7.23 billion, employ about 93,000 people, and will be the country's fifth-largest company on the stock exchange.
Meanwhile Wilmar-PPB Oils will manage around 570,000 hectares of plantations in Malaysia & Indonesia with combined market value around USD4.3 billion. While Synergy has strong position in plantations, Wilmar-PPB has more downstream capability.
This year, for example, Wilmar will operate giant biodiesel plant in Dumai, Riau province with combined capacity of 1.05 million tones/year in three stages (each with 350,000 tones).

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The President as Poster Boy for Prescious Stone Necklace

You better check this out! I'm not sure if this is real nor when did President SYB wear that, and Smile! I did ask the sales person of Bio-FIR. "Yes, the president use this product," he said. "But why I neevr saw the president wear that in public?" "Well, for certain occasions, he wears that," the sales person trying to convince me. "So, is it something wrong with the president's state of health?" "Not necessarily so. But it's good for those with high cholesterol, hypertension, migrain, vertigo, prostat, insomnia, etc," he answered. "Which one is the president's problem?" "You better ask yourself." "Do you pay the president for such advertisement?" "I don't know."

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Mari Pangestu's mother passed away

Evi Elka Pangestu, mother of Mari Elka Pangestu (minister of trade), passed away on Thursday at 85. Evi, wife of the late economist Yusuf Panglaykim, survived three children (Mari, Tikki, and Pingki) and five grandchildren (Pang, Bayu, Raymond, Alexander, and Budi).

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Loka Prawiro & The Sweet of Business

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Tax incentive & efficacy

In a bid to boost investment, government launched a new tax incentive where certain projects and/or in certain areas will enjoy tax income break. But based on various surveys by different organizations, income tax is not an issue. Investors are willing to pay tax, but all they need is certainty and eradication of under the table payments.

This is not the first time government offers tax incentive. Back in 90s, Soeharto administration once offered tax holiday to certain projects. Kiani Kertas (that time controlled by Soeharto's golf buddy Bob Hasan), Tuban Petrochemical (controlled by Hashim Djoyohadikoesoemo, younger brother of Soeharto's son-in-law Prabowo Subianto), and Texmaco Perkasa Engineering (owned by Marimutu Sinivasan, one of Soeharto's favourite businessman) were among the receipients of tax holiday. But all of these projects almost bankrupt and even until now are struggling after almost 10 years. And most important, the facilicy failed to attract significant FDI.
Antara reported that nine types of investment would be eligible for tax income incentive. Investment in palm oil/cooking oil in Sulawesi, corn mills in Sulawesi, fish processing in Sulawesi, Maluku, and Papua, sugar plants outside Java, and cement in Papua are among them.
I'm not saying this is a kind of wrong medicine. I just sense the reemerging of cronyism in selecting companies which eligible to get.

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This is the perfect time, Mr President!

President SBY indirectly admitted his weaknesses when he stated that in 2007 onwards he would be more decisive & direct. Recent issues, the humiliating Haj catering chaotic and transportation accidents, might be the best tests of how SBY would implement his New Year resolutions.

It's difficult indeed. Imagine how officers at religious affairs ministry pointed their fingers to legislator KH Aziddin from SBY's Democrat Party who recommended the catering service. Imagine also how difficult to punish Mandala Airlines (previously controlled by army) or Adam Air (partly owned by House Speaker Agung Laksono).
OK, he might needs little bit time, awaiting the conclusion of respective investigations. The president could start with softer issues like the disbursement of land acquisition fund to accelerate the construction of trans-Java toll roads. The state budget had allocated Rp2 trillion for that purpose (to be reimbursed by toll road investors later on) and Tuesday (Jan 2nd) should be the first disbursement. None! Why? Because the ministry of finance and public works are yet to settle the mechanism. Mr President, call in these ministers and ask them to settle immediately. We have too many people unemployed and that's not good for your image (if you really cares about this)!
Another tough issue that needs tough decision is mudflow disaster caused by Lapindo Brantas Inc in Sidoarjo, East Java. We're confused of conflicting statements over the cost of handling the disaster or compensation to people's assets. You've signed a decree last September that gives Lapindo six months time to cover all the costs, which means until March. The problem, we have no idea of what will happen after March which is two months away. Should all of us bear the costs Lapindo failed to cover? What do you really mean with Rp3.8 trillion that Lapindo should bear? What if Lapindo said "sorry, we have no money, we're filing for bankruptcy protection."?
You've assigned energy minister Purnomo Yusgiantoro to lead the Lapindo Settlement team. But I never read of any decision made by the team. The team looks bussy, but I'm afraid nothing is actually being done.
Purnomo told us today that he can't move (to separate what's government share or Lapindo share of the burden) because you made no decision yet. Should you the one who make all the technical decisions?
We understand how deep your relationship with Mr Purnomo. But this is just the perfect time to convince public that you want to walk the talks!

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Sense of urgency

JSX composite index closed with 55% growth last year and could easily pass the 2,000 point. But nothing special. Russian stock market grew higher at 67%, Shanghai almost 100%. So, I don't see the urgency of President SBY's visit to JSX today to officially open the 2007 trading activity. All we need is investment in the real sector that creates more jobs. Besides, we have lots of problems lately with safety of our public transportation services that deserved serious attention from the president.

The crash of Adam Air in West Sulawesi that killed more than 90 people has raised concern about the safety issue. On September 5, 2005, a Mandala Airlines’ Boeing 737-200 crashed just after take-off into a crowded residential neighbourhood of the north Sumatran port city of Medan, Indonesia’s third largest city. At least 102 crew and passengers were killed, as well as 47 local residents.
Indonesia's worst was in September 1997, when a Garuda Airbus A-300B4 crashed in a mountainous area near Medan, killing all 222 passengers and 12 crew.
What's shocking this time is the sequence of disasters. Just hours before Adam Air crashed, several ships sinked in various areas with hundreds of people missing. Some blamed bad weather, but others pointed to gross neglience of passenger's safety with overloaded cargoes.

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Introducing Yosefardi.com

Dear readers,
In the coming days, I'll introduce the new web service at yosefardi.com for your convenience.

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Tragedies

I can't help but wonder why we have to start writing the 2007 chapter with tragedies & misseries. Detik.com reported Adam Air flight from Surabaya to Manado, North Sulawesi is out of radar screen for almost six hours now with 102 people onboard missing only hours after a ship sinking with 400 people on board. I rejects to believe the soothsayer's gloomy 2007 prediction or President SBY's bad aura & let's pray for their survival!

Detik.com reported Tuesday morning that Adam Air crashed in mountain area of Polman, West Sulawesi. Thank God, 12 passengers survived, but no information available on the remaining 90 passengers on board the Boeing 737-400.
Associated Press reported few minutes ago that rescue teams found the smoldering wreckage of an Indonesian jetliner that went missing over Indonesia's Sulawesi island during a storm, authorities said. At least 90 of the 102 people on board were killed, a local official said.
"The plane is destroyed and many bodies are around there," said local police Chief Col. Genot Hariyanto, AP reported.

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Herwidayatmo's Back in Town

First of all, Happy New Year 2007. I really want to start 2007 differently. I started 2006 postings with floods in several areas. This year, I starts with my Herwidayatmo, former chairman of Capital Market Supersivory Body (Bapepam), who served two years as director at World Bank and just returned home recently. In fact I met him accidentally on Saturday while I had window shopping at Plaza Senayan. Herwidayatmo was with his son.

"As civil servant, I'll back to ministry of finance," he said when I asked what will be his new post.
"Are you going to start a news organization by yourself?" he asked about what I'm going to do in 2007.
Considering his close relationship with SBY as coordinating minister for politic & security affairs, I wonder whether he'll be promoted to higher lader as minister in the next cabinet reshuffle.

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