January 7st , 2008 - IFCCI -

The report of business trading development relationship between Pakistan - Malaysia, and its effect to Indonesia

In effort to search non traditional alternative to indonesian exporter, maintaining relationship with Pakistan is one of key point.
Complete news.

5.5 magnitude earthquake shakes Sorong

JAKARTA : A 5.5 magnitude earthquake rocked Sorong, Papua on Monday, prompting authorities to issue a tsunami warning.

The temblor struck at 10:12 a.m. Jakarta time, 77 kilometers southeast of Sorong at a depth of 50 kilometers.

Metro TV reported that people in Sorong and Manokwari left their homes for higher places when the tsunami warning was issued. There were no reports of casualties or damage.

Tangerang, Bekasi brace for local elections

TANGERANG, Banten : Two neighboring regions of Jakarta will hold local elections by the end of this month.

Tangerang regency, which is located to the west of the capital, opened its official campaign season last weekend for three gubernatorial candidates: Ismet Iskandar-Rano Karno, Jazuli Juwaini-Airin Rachmi Diany and Usamah Hisyam-Habib Alwi Al Husaini.

Incumbent Regent Ismet Iskandar is looking for a second term with actor Rano Karno as his running mate and backed by a coalition of 15 political parties, including Golkar, the Indonesian Democratic Party of Struggle (PDI-P), the National Mandate Party and the United Development Party.

Legislator Jazuli Juwaini and his running mate Airin Rachmi Diany, the sister-in-law of Banten Governor Ratu Atut Chosiah, have the backing of six parties, including the Prosperous Justice Party (PKS) and the Crescent Star Party, while the Democratic Party (PD) and the National Awakening Party have thrown their weight behind PD executive Usamah Hisyam and his running mate, Habib Alwi Al Husaini.

Ismet said he needed another term to finish all of the development programs he has been designing since 2003.

"We borrowed Rp 200 billion (US$20.1 million) from Bank Jabar to build some new and renovate dozens of damaged schools, (and) public health clinics. All the programs are still underway now and I don't want to leave any homework for my successor," Ismet said in Balaraja on Saturday.

Jazuli Juwaini-Airin Rachmi Diany who was campaigning in Teluk Naga on the same day said he would focus on poverty alleviation and the improvement of health services, the economy and education by establishing free schooling and free health services.

The direct election is scheduled for Jan. 20. It is expected that 2.4 million registered voters will take part. The regency's total population is 3.4 million.

Meanwhile, millions of the Bekasi City residents will also choose their future leaders out of the selected three candidates at the upcoming regional election to be held on Jan. 27.

The Bekasi Elections Commission has registered 1.1 million residents.

The commission also has announced three official candidates, Awing-Ronny Hermawan from the Democratic Party, Mochtar Mohamad-Rahmat Effendi from the PDI-P and eight others, and Syaikhu-Kamaludin from the PKS, who will be running to become the city's first directly elected mayor.

Kenyan opposition leader ready to discuss power sharing

NAIROBI, Kenya : Kenya's opposition leader called on Sunday for rallies across the country, raising the prospect of renewed bloodshed even as he indicated he was willing to negotiate a power-sharing agreement to resolve the explosive electoral crisis.

Raila Odinga, who claims President Mwai Kibaki rigged Dec. 27 elections with a flawed vote tally, told reporters he would negotiate only through an international mediator. He welcomed the imminent arrival of Ghana's President John Kufuor, current chairman of the African Union, who is expected in Nairobi by Tuesday.

Kenyans, meanwhile, prayed for peace and an end to the political deadlock as a relative calm descended after days of violence - often ethnic-driven - that left some 300 people dead and 250,000 homeless.

"This fighting is meaningless," said Eliakim Omondi, 17, at a Lutheran church in Nairobi's Kibera slum that had been torched just days earlier. "I wish they would just talk and square everything so the fighting will stop."

Pastor Dennis Meeker urged congregants kneeling before a charred cross to "be with those who tried to kill you and destroy you." A woman dropped to the floor screaming "Forgive the people who attacked our church!"

US dollar rises against yen in Asia on buying by Japanese importers

TOKYO : The dollar rose against the yen in Asia Monday on buying by Japanese importers, but players said the dollar may drop later amid pessimism over the U.S. economy.

The dollar rose to 108.90 yen midafternoon in Tokyo, up from 108.45 yen from late Friday in New York. In late December, it was trading above 114 yen. The euro, meanwhile, fell to US$1.4726 from US$1.4773.

Currency players are paying attention to falling stock prices, especially in Japan, London and New York, said Societe Generale's senior dealer Yuji Saito, as the moves may give players a hint as to how much the dollar may decline against the yen. Japan's Nikkei 225 index was down 1.2 percent in late afternoon trading Monday, and the Dow Jones industrial average fell 1 percent Friday.

"The dollar dropped enough last week, so in order for it to slip further, players need new trading factors, such as another sharp drop in stock prices," Saito said.

Many Tokyo dealers hold a similar view, saying without new negative U.S. economic news, the dollar may get stuck in a tight trading range against the yen as Japanese economic fundamentals are discouraging players to actively buy the currency.

WASHINGTON : Wary employers clamped down on hiring and pushed the unemployment rate to a two-year high of 5 percent in December, an ominous sign that the U.S. economy may slide into recession. President George W. Bush explored a rescue package, including a tax cut, with his economic advisers.

Gripped by uncertainty, government and private employers last month added the fewest new jobs to their payrolls in more than four years. In fact, employment at private companies alone actually declined. The Labor Department's report, released Friday, provided evidence of an economy greatly strained by a housing slump and acredit crunch.

The disappointing employment figures sent Wall Street into a nosedive, thrust the White House into damage control and ratcheted up the blame game as Republicans and Democrats battle for the presidency. The employment numbers also sparked expectations that the Federal Reserve will have to lower interest rates again. Asexpected, the Fed took action to make cash more available to banks.

Bush said he is on top of the situation. "We can't take economic growth for granted," he said. "There are signs that will cause us to be ever more diligent and make sure that good policies come out of Washington."

The president said he wants to work with Congress "to deal with the economic realities of the moment and to assure the American people that we will do everything we can to make sure we remain a prosperous country."

"While there is some uncertainty, the report is that the financial markets are strong and solid," Bush said.

Sitting around a table with his economic advisers at the White House, the president warned Congress against taking steps that would increase taxes. "If the foundation is strong yet indicators are mixed, the worst thing that Congress can do is raise taxes on theAmerican people and on American businesses," Bush said.

With the odds of a recession increasing, Bush is weighing the need for an economic stimulation package. The president, who has been plagued by low public approval ratings for his handling of the economy, is not expected to make any decisions until later thismonth. Tax cuts are under consideration, White House spokesman Tony Fratto said. "We've done tax cuts before and it's led to growth," Fratto said.

The nationally televised State of the Union policy address to Congress is Jan. 28 and Bush is likely to unveil his package then.

The civilian unemployment rate jumped from 4.7 percent in November to 5 percent in December, the highest since November 2005, after the Gulf Coast hurricanes dealt the country a mighty blow. Total payrolls - both private employers and government - grew by just 18,000 last month, the worst showing since August 2003, when the economy suffered job losses as it struggled to recover from the 2001 recession.

"This is a major warning shot that the economy is in trouble," said economist Joel Naroff, president of Naroff Economic Advisors.

On Wall Street, stocks plunged. The Dow Jones industrials lost 256.54 points to close at 12,800.18.

As part of its recently launched effort to make credit more readily available, the Federal Reserve announced that it will provide banks an additional $60 billion worth of loans through two auctions on Jan. 14 and Jan. 28. The Fed's first two auctions offered banks a total of $40 billion in loans.

The December employment picture was much weaker than economists were expecting.

Employers have grown cautious as they try to cope with fallout from housing and credit problems and rising uncertainty about how the economy will fare in the months ahead. Galloping energy prices and bad weather in some parts of the country also probably figured into the weak job figures.

Manufacturers, construction companies and financial services all cut jobs in December - casualties of the housing slump. Retailers also sliced jobs.

The government added 31,000 jobs in December, while private employers actually cut payrolls by 13,000, underscoring the weakness.

"Businesses have turned super-conservative," said economist Ken Mayland, president of ClearView Economics. "With slower economic growth has come the pink slips."

TOKYO : Indonesia's ranking has improved to eighth from ninth last year in the top ten countries for Japanese investors, a survey has revealed.

An official at the Indonesian embassy in Tokyo, M. Abas Ridwan, said Friday the survey was conducted by the Japan Bank for International Cooperation (JBIC).

"It's a new year's gift for Indonesia," he said.

However, he said, most Japanese investors still remained cautious with Indonesian business prospects following the economic crisis a decade ago.

Dollar rises against yen in Asia on short-term investor buying

TOKYO : The dollar rose against the yen in Asia Friday on short-term investor buying, recovering from an early steep decline caused by a plunge in Japanese stocks that prompted risk-averse players to sell the greenback.

The U.S. dollar was trading at 109.41 yen at 2:50 p.m. (0550 GMT) Friday, up from 109.33 yen late Thursday in New York. The euro fell to US$1.4740 from US$1.4744.

Japan's benchmark Nikkei stock index plunged to its lowest finish since July 2006 in the traditional half-day session that starts the new year, ending down 4 percent at 14,691.4 points.

The dive on the Tokyo Stock Exchange prompted risk-averse investors to unwind so-called yen carry trade positions, in which they borrow yen and buy higher yielding currencies. The liquidation of those positions tends to strengthen the yen.

The greenback fell to a session-low of 108.78 yen in the aftermath of the share losses, but it later recovered its losses after stock markets closed as short-term speculators bought the currency.

Traders said the dollar's rise was likely short-lived as worries over the U.S. economic outlook dominate the market.

"Given worsening business sentiment, especially in the U.S., and fears over subprime mortgage market woes, the unwinding of yen-carry trade positions due to risk aversion is likely to continue," said Tohru Sasaki, chief foreign-exchange strategist for JPMorgan Chase Bank.

The dollar was mixed against other Asian currencies. It rose to 39.325 Indian rupees from 39.225 and 41.015 Philippine pesos from 40.900, and fell to 3.2840 Malaysian ringgit from 3.2890.