Riffrag Business & Finance Report

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

The government recorded a budget surplus amounting to Rp60, 3 trillion until June 15, 2010, as compared with the same period last year which only amounted to Rp11, 7 trillion.

However, precisely due to the amount of the surplus is still a lack of absorption of government spending particularly in the Ministries and Institutions (K / L). The realization of state revenue until June 15, 2010 amounted to Rp386, 7 billion or 39 percent.

State revenue is divided into domestic revenue, namely tax revenue amounting to Rp300, 5 trillion, or 40.4 percent of which consists of domestic tax components of Rp290, 4 trillion, or 40.3 percent, and international trade taxes to Rp40, 1 trillion, or 44.9 percent.

Meanwhile, state revenues amounted to Rp85, 9 trillion, or 34.7 percent, and grants Rp167, three billion or 8.8 percent.

Actual expenditure up to the same period was recorded Rp326, new 3 trillion or 28.9 percent of central government expenditure amounted to Rp198, 7 billion or 25.43 percent, transfers to the regions Rp127, 6 trillion or 37 percent.

The realization of local government expenditures are divided into personnel expenditure amounting to Rp62, 3 trillion, or 38 percent, spending on goods Rp25, 4 trillion or 22.9 per cent and capital expenditure Rp14, 4 trillion, or 16.4 percent.

“We still have budget surplus amounted to Rp60, 3 trillion, so we had a deficit this time,” said Director General of Treasury Herry Purnomo told a news conference at the Office of the Ministry of Finance, Jalan Dr Wahidin, Jakarta, Monday (21/06/2010).

Compared with last year’s budget expenditure in percentage peemrintah indeed smaller. However, in nominal terms is far greater because pagunya even greater.

In the same period in 2009, state revenues from domestic revenue and grants amounted to Rp330, 8 trillion, or 38 percent of which comes from tax revenue amounting to Rp266, 8 trillion, or 40.9 percent, Rp259 domestic taxes, a trillion or 41 percent .

Meanwhile, in last year’s state expenditure until the same period was recorded Rp319 1 trillion or 31.9 percent of the Central Government spending amounted to 200 7 trillion or 29 percent, personnel expenditure Rp52 2 trillion, or 42.8 percent, and purchases goods Rp20, 6 trillion, or 24.2 per cent and capital expenditure of Rp16, 6 trillion, or 22.6 percent, and transfer areas Rp118, 3 trillion, or 38.3 percent.

“Even now the percentage is smaller but larger than nominal,” he said

JAKARTA – The government is projecting economic growth in the second quarter 2010 will reach 5.9 percent. It was driven by investment and exports.

Actual first quarter and then reached 5.7 percent, while for the economic growth target based on the national budget in 2010 amounted to P 5.8 per cent.

“For the second-quarter 2010 projected at 5.9 percent a dididorong by investment and exports,” said Vice Minister of Finance Anny Ratnawati during a press conference at the Ministry of Finance, Jakarta, Monday (06/21/2010).

Until April 2010 recorded exports amounted to USD12 billion, up 42.6 percent compared to the same realization in the 2009 period.

Earlier, former Minister of Finance (Finance Minister) Sri Mulyani expressed optimism that economic growth in the second quarter-2010 will reach 6.0 percent.

This is caused by factors that are still quite strong, both in terms of government spending, consumption, and exports. According to Sri, investment and exports will begin to increase, thus contributing to the economic growth rate is higher in the second quarter-2010. Including for imports of raw materials and capital goods could be an indicator.

JAKARTA – CIMB Group and Sun Life Financial signed an agreement forming a joint venture (JV) with the name of PT CIMB Wed Life.

The signing of the agreement consisting of bancassurance business agreement and shareholders agreement (Bancassurance and Shareholders Agreements) has agreed to last March 16, 2009, and the stock transfer agreement (Share Transfer Deed) then this will pave the way for the formation of a new company, namely PT CIMB Sun Life (formerly known as PT Commerce International), which is 51 percent owned by CIMB Group. Meanwhile Sun Life Financial will hold the remaining number of shares of 49 percent.

“This joint venture partnership opportunities for Bank CIMB Niaga to encourage the growth of its assurance business. It also proves our commitment to continue to expand our business in Indonesia. PT CIMB Sun Life will provide life insurance and protection products and other investments , which will assist them in achieving financial goals, “said President Director of Bank CIMB Niaga Arwin Rashid, in his written statement received Legal, Jakarta, Tuesday (28/7/2009).

PT CIMB Sun Life will officially operate in the third quarter of 2009 by combining the power of customer relationships and extensive distribution network of Bank CIMB Niaga, and global expertise in the insurance industry is owned by Sun Life Financial, a joint venture is expected to be able to work on developing bancassurance market rapidly in Indonesia.

PT CIMB Sun Life at the beginning of the operation will focus its services to three million customers Bank CIMB Niaga through more than 650 branches, before extending his reach to new customers.

“PT CIMB Sun Life combines the strength of the CIMB Group and Sun Life Financial to provide our customers the circuit protection solution that innovative spirit. We have a goal to become one of the leading players in the bancassurance industry in Indonesia,” said Chris Lossin, Country Manager, Sun Life Financial in Indonesia.

Within this structure of cooperation, Indonesia PT Sun Life Services, a subsidiary of Sun Life Financial, has a 49 percent stake in PT. CIMB Sun Life, an insurance company owned by CIMB Group. The rest, 51 percent of new company shares, will be owned by CIG Berhad, a holding company of CIMB Group is engaged in the insurance along with Bank CIMB Niaga. PT. CIMB Sun Life plans are ready for operation this year.