Riffrag Business & Finance Report

Nearly three-quarters of corporate chief executives (chief executive officer / CEO) of the world view that economic growth is not stable as a potential threat to their business within the next 12 months. In addition, nearly one-third of CEOs say that they are ‘very concerned’ by global economic outlook.

Annual survey titled PwC PricewaterhouseCoopers 14th Annual Global CEO survey says about 61 percent of respondents from among the top executives were assessing other common threats that will be faced is the government’s reaction to the fiscal deficit.

Additionally, 60 percent of CEOs worry that overlapping regulation, the threat of exchange rate volatility (54 percent), and capital market conditions are unstable (52 percent) and protection (40 percent). Meanwhile, the specter of inflation revealed by less than a third of respondents.

Among the threats to the CEO’s business, 56 percent of respondents worried about the availability of talent is required, followed by an increase in taxes (55 percent), and a permanent shift in consumer behavior (48 percent).

“The lack of potential talent of special concern in Asia Pacific, Central and Eastern Europe, Middle East, and Africa,” PwC said quoting the survey results.

Other global risks disclosed CEOs including political instability (58 percent), scarcity of natural resources (34 percent), climate change (27 percent), and natural disasters (25 percent).

For that, almost half of CEOs said the government’s priority should be emphasized in state infrastructure improvements. In addition, the government of a country is expected to create and maintain a skilled workforce, and ensuring the stability of the financial sector and access to affordable capital.

“More than 60 percent of CEOs agree that public spending cuts or tax increases would slow economic growth in their countries,” writes the results of the survey.

In fact, 53 percent of CEOs say their companies will increase the tax consequences of the government reaction to increase the public debt. Just over a third of CEOs say their companies have made strategic changes due to public spending cuts or tax increases both domestically and abroad.

Responding to the survey results, Chief Economist of PT Bank Danamon Tbk, Anton Gunawan, say, a number of global CEOs mainly from western countries are still worried about the investment climate constraints in some countries of the world.

“Not to mention, they still faced with the conditions of corporate recovery (post-shocks of economic crisis),” said Anton told VIVAnews.com in Jakarta.

Anton rate, especially in Indonesia, direct investment from European companies and the United States is not as big as business expansion coming from Asia. “If from Asia, many Korean firms, China, Japan, and India to Indonesia,” he said.

However, according to him, to invest in portfolio, a number of world companies have been so heavily into the country since last year. “Unlike a direct investment, portfolio foreign investment into Indonesia has been a lot,” he said.

PwC survey was conducted with 1201 respondents CEO interviews in 69 countries in the last quarter of 2010. Viewed from the region, as many as 420 interviews were conducted in Western Europe, 257 (Asia Pacific), 221 (Latin America), 148 (North America), 98 (Eastern Europe), and 57 in the Middle East and Africa.

Countries in Asia-Pacific consists of Australia (40), China (39), Hong Kong (7), India (40), Indonesia (1), Japan (75), Korea (15), Malaysia ((11), Singapore (4), Taiwan (10), Thailand (5), Vietnam (10).

The government plans to attract financing for this year’s prime Rp5 trillion through the issuance of series 4 debentures countries (SUN) on Tuesday next week.

Rahmat Waluyanto, Director General of Debt Management Department of Finance, explained the four series of rupiah-denominated SUN to be published, al SPN20110113 series with 1-year tenor, FR0027 series
fixed rate (fixrate) 9.5% and when due June 15, 2015, and FR0028 series with a fixed interest 10% and when due 15 July 2017. Last FR0052 series with a fixed interest rate of 10.5% and when due 15 August 2030.

“The amount auctioned indicative Rp5 trillion to meet part of the budget financing targets in 2010. The letter states the debt to be auctioned has a nominal per-unit of Rp1 million,” Grace wrote in a press release today.

For this year, state budget financing needs in 2010 to record registration in accordance with the Rp98 trillion budget deficit of 1.6% of GDP.

The plan, the government will attract financing from the domestic registration Rp107, 9 billion, most of the instruments of state securities with net target of Rp104, 4 trillion. Meanwhile, foreign financing for it is reduced Rp9, 9 trillion.

The government has poured funds amounting to Rp22, 7 trillion to subsidize fuel oil (BBM) until June 15, or approximately 25.6 percent.

This was conveyed by Vice Minister of Finance Anny Ratnawaty, in a press conference at the Ministry of Finance, Jalan Dr Wahidin, Jakarta, Monday (06/21/2010).

When compared to the realization years ago, that number is greatly increased due to the same period last year realization of fuel subsidies only Rp5, 8 trillion, or only 11.6 percent.

Although not explicitly mention the main cause of the increase in fuel subsidy allocation, but is expected in the year 2009 the world crude oil prices still in the range of $ 30-40 per barrel, but now oil prices have been above $ 70 a barrel.

Meanwhile, the actual electricity subsidy in the same period actually declined this year compared with same period in 2009. Currently the electricity subsidy amounted to Rp14, 1 trillion or 25.6 percent, while last year the realization of Rp16, 7 trillion, or 35.1 percent

JAKARTA – Actual expenditure absorption of 76 Ministry / Agency (C / L) until June 15, 2010 was recorded to reach Rp88, eight trillion or higher when compared to last year amounted to Rp83, 9 trillion.

Meanwhile, from 10 K / L average realization of large absorption of the budget reached 24.2 percent. Among the K / L are:

1. Ministry of Defence of the ceiling of the Budget Implementation Entry List (DIPA) Rp42, 3 trillion, the realization Rp17, 3 trillion, or 40.9 percent.
2. The Ministry of Communications from the limit of Rp15 DIPA 8 trillions, realization Rp3, 2 trillion, or 20.7 percent.
3. Ministry of National Education, the maximum amount of DIPA Rp55, 1 trillion, the realization Rp15, 4 trillion or 28.07 per cent.
4. Ministry of Health, the maximum amount of DIPA Rp21, 3 trillion, the realization Rp5, a trillion or 23.99 per cent.
5. Ministry of Religious Affairs, the maximum amount of DIPA Rp27, 5 billion, the realization of Rp6, 8 trillion, or 25 percent.
6. Ministry of Public Works, the maximum amount of DIPA Rp34, 9 trillion, the realization Rp6, 8 trillion, or 19.4 percent.
7. Police, the maximum amount of DIPA Rp27, 1 trillion, the realization of Rp10, 8 trillion, or 39, 8 per cent.

“Most of realization because of personnel expenditure to pay salaries, whereas capital spending is still small but not significant,” said Director General of Treasury Herry Purnomo, during a press conference in the office of the Ministry of Finance, Jalan Dr Wahidin, Jakarta, Monday (21 / 6 / 2010).

Meanwhile, Vice Minister of Finance who also serves as the Director General of Budget Anny Ratnawaty mention, still tersendatnya actual expenditures K / L is caused by several K / L which still get the star is still blocked because of a delay in the submission to the Director General of Treasury DIPA.

“The Ministry has facilitated the disbursement of financial in K / L. If it was nonetheless a star in the DIPA (blocked) did not inhibit the process of procurement of goods because there is already pagunya,” he said.

He also reminded the K / L that the government will do rewards and punishments to the implementation of the budget. Later, in 2012 a new application of rewards and punishments to K / L due to the realization of a new budget is known in 2011 by making it as a baseline for implementation in 2012.

“For our rewards and punishments based on the experience of fiscal stimulus in the preparation of the financial memorandum and the State Budget in 2011, and will we do in 2012. Implementation of punishment should be cautious, for example because there inefieinsi, force major, and really nothing is justified, “explicitly

JAKARTA – Bank Indonesia (BI) BI asserted if the associated policy packages one month period was deliberately not closed the opportunity for foreign investors, to purchase Bank Indonesia Certificates (SBI). The reason is the presence of foreign funds was also a positive impact on the domestic market.

It is said Director of Economic Research and Monetary Policy Bank Indonesia BI Perry Warjiyo in discussions Bareng Media (BBM), in Building the Bank of Indonesia, Jakarta Monday (6/21/2010).

“Particularly in the domestic foreign exchange market, because it does not always have excess supply. Even to excess demand,” he said.

Furthermore, it was clear Perry, Indonesia, in principle, still require the presence of foreign funds, especially for investment activities. Even if there is negative impact, he said, BI is still able to anticipate the policy of holding one-month SBI.

“If this can be achieved with this policy, why the need to create policies that risky,” he concluded