Newsgroups: bit.listserv.seasia-l
Date:         Sat, 9 Jan 1993 16:51:54 EST
From:         arusydi@SUVM.SYR.EDU
Subject:      INA: Indonesia news update (fwd

With a permission from the list owner of IDS@SUVM, 1/9/1993.
=========================================================================
Date:         Sat, 9 Jan 1993 14:21:33 -0500
Reply-To:     Indonesian Development Studies - Network <IDS@SUVM.BITNET>
From:         KOWIK@MARY.FORDHAM.EDU
Subject:      APBN 1

From: Bloomberg

BBN 16:11 (UPI)-INDONESIA BUDGET LESSENS DEPENDENCE ON OIL
By SUNINO HARISUMARTO


JAKARTA, Indonesia (JAN. 7) UPI - President Suharto submitted a
draft 199394 budget Thursday in which increased returns from income
tax would exceed oil revenue for the first time by 36 percent.

Suharto unveiled to the House of the People's Representatives a
budget of $30.2 billion for fiscal 1993-94, beginning April 1 - an
11.1 percent increase over the previous year.

The new budget forecast domestic revenues to reach more than $25.6
billion, an increase of 13.5 percent.  Development revenues were
estimated to reach only $4.6 billion, down 0.5 percent.

Oil and gas revenues were expected to increase by 8.5 percent to
$7. 28 billion, while non-oil and gas revenues were forecast to
grow by 15.6 percent to more than $17.96 billion.

The fastest growing revenue would come from income taxes, expected
to rise 35.9 percent over last year to $7.2 billion, topping oil
revenues for the first time.

In Indonesia, the only Asian member of the Organization of
Petroleum Exporting Countries, oil has been a major revenue source
for decades.

"This quite substantial increase is going to materialize by
increasing the number of taxpayers and improving administration,"
Suharto said.

Suharto said the inflation rate for 1992 held at 4.94 percent and
announced salary increases for civil servants and members of
military averaging between 12 and 18 percent.

The new budget is based on a presumed average price of $18 per
barrel for Indonesian oil, sold at an OPEC-linked price.

Mining and Energy Minister Ginandjar Kartasasmita explained the
revenue from the oil and gas sector was based on the country's
planned production of 1.534 million barrels per day, including
160,000 barrels of condensate.


-0- (UPI) Jan/07/93   16:07
EOS   (UPI)    Jan/07/93    16:07


... C.A. KOWIK
... KOWIK@MARY.FORDHAM.EDU

=========================================================================
Date:         Sat, 9 Jan 1993 14:21:51 -0500
Reply-To:     Indonesian Development Studies - Network <IDS@SUVM.BITNET>
From:         KOWIK@MARY.FORDHAM.EDU
Subject:      APBN 2

From: Bloomberg

BBN 14:36 01/06/93 (PRN)-INDONESIA'S BUDGET FOR FY 1993-94 DESIGNED
                         FOR STABLE ECONOMY


     JAKARTA, Indonesia, Jan. 7 /PRNewswire/ -- Indonesia's
President Soeharto today announced the details of a mildly
expansionary State Budget for Fiscal Year 1993-94 that calls for an
11.1 percent increase in government revenues and expenditures to
Rp. 62.3 trillion (US$30.2 billion at current conversion rates).

     The bulk of the revenue increase is expected to come from
expanded domestic tax receipts, further enhancing Indonesia's self-
reliance on development funding and reducing its dependence on
foreign aid.

     The new budget, which goes into effect on April 1, 1993, is
the last in Indonesia's fifth Five Year Development Plan (Repelita
V) and marks the final year of the country's first Long-Term (25
Year) Development Program.

     The budget is based on the projection that 84.7 percent of
total government revenues will derive from domestic sources which
are slated to rise 13.5 percent to Rp. 52.8 trillion ($25.5
billion).  The share of domestic revenues in total revenues
compares with 82.9 percent in FY 1992-93 and 79.5 percent two years
ago.

     Equally significant is the continued increase in non-oil and
gas revenues as a proportion of domestic revenues.  Contributing
Rp. 37.6 trillion ($18.2 billion) -- 15.6 percent more than last
year -- the non-oil and gas sector will account for 71.3 percent of
domestic revenues, up from 70 percent in FY 1992-93 and 62.6
percent two years ago.

     Based on a projected average oil price of $18 per barrel in
the coming fiscal year, oil and gas revenues are estimated to
contribute Rp. 15.1 trillion ($7.3 billion), an increase of 8.5
percent compared with a fall of 7.1 percent last year.

     Within the petroleum sector, revenues from oil are slated to
increase by 5.4 percent to Rp. 11.8 trillion ($5.7 billion), while
those from sales of liquefied natural gas (LNG) are expected to
grow by 20.9 percent to Rp. 3.3 trillion ($1.6 billion).

     The budget projects that Indonesia's domestic funds will
continue to benefit from growth in tax revenues.  A broadening of
the tax base coupled with tighter administration is expected to
generate an overall 35.9 percent increase in taxes on personal and
corporate income.

     Between them, these taxes will contribute Rp. 14.8 trillion
($7.2 billion), substantially -- and for the first time --
surpassing the Rp. 11.8 trillion revenues from oil, underlining
Indonesia's growing self-reliance in generating funds for
development.  Value Added Tax (VAT) is slated to rise by 5.9
percent to Rp. 11.6 trillion, supplying almost as much to domestic
revenues as oil.

     On the expenditure side, the category of "routine expenditure"
-covering foreign debt payments, government salaries and other
annual operating expenses -- is projected to increase by 11.7
percent in FY 1993-94.  With the budget provision for salaries and
pensions rising by 22.8 percent, Indonesia's civil servants and
armed forces personnel will enjoy their first pay increase since
July 1991.

     The enhanced domestic revenues will, in part, be directed to
increased use of national resources for development projects.  In
the projected 1993-94 Budget, only 37.8 percent of development
funding will be supported by overseas financial aid, down from 41.9
percent in the current fiscal year, 52 percent in 1991-92 and
nearly 70 percent three years ago.

     The application of increased domestic funds to development
expenditures is made possible by a 17.7 percent expansion in the
level of "public savings" to Rp. 15.7 trillion ($7.5 billion).

     Public savings represents the differential between government
revenues -- slated to increase by 13.5 percent -- and routine
expenditures -- projected to increase by 11.7 percent.  As a ratio
to domestic revenues, public savings grew from 24 percent in FY
1991-92 to an estimated 28.6 percent in the current fiscal year and
are projected at 29.7 percent for 1993-94.  For the whole of
Repelita V, public savings are expected to reach Rp. 54.3 trillion,
15.2 percent higher than the targeted Rp. 47.1 trillion.

     The continued expansion of the national revenue base, said
Finance Minister Dr. J.B. Sumarlin, reflects Indonesia's firm
resolve to increasingly fund development from the country's own
resources and reduce reliance on both overseas aid and government
borrowing.

     Provision for repayment of foreign debt comprises the largest
item under routine expenditures in the FY 1993-94 Budget, as in
previous years.  Based on an assumed exchange rate of 125 Yen to
the dollar during FY 1993-94, Indonesia's external debt repayment
obligation is projected to rise by 5.1 percent -- less than half
the 10.6 percent increase of last year -- to reach Rp. 16.4
trillion.  As at the end of September 1992, Indonesia's outstanding
government debt stood at $49.9 billion.

     At the same time, improvement is forecasted in Indonesia's
Debt Service Ratio (DSR) -- the ratio of aggregate debt service
payments to total gross exports.

     According to Minister Sumarlin, the DSR based on government
debt will decline in FY 1993-94 to 18.7 percent, down from 20.3
percent in the current fiscal year.

     With the inclusion of additional private sector debt, the
Finance Minister said Indonesia's DSR in 1993-94 is estimated at 30
percent, down from 32 percent in the current year.

     Development projects will comprise nearly 41 percent of the FY
1993-94 Budget, slightly up from the current year level.
(Development projects -- as opposed to routine expenditures --
represent government spending to improve the nation's physical and
social infrastructure.) Five key sectors will receive the greatest
share of development spending.  These are:

     -- Transportation and Tourism: This sector will again receive
the largest share of development spending, a record Rp. 4.67
trillion, up 6.7 percent from the present year.  Road construction,
in order to provide remote areas with access to markets, will
receive the largest share -- Rp. 3.02 trillion, a rise of 9.1
percent.

     -- Education and Culture: Reflecting the government's
continued emphasis on human resource development, this sector will
receive a total of Rp. 3.6 trillion, a jump of nearly 19 percent
over last year.  This will fund the improvement of teaching and
research skills, as well as raise teacher compensation in order to
attract more highly qualified talent.

     -- Regional/Municipal Development: To receive Rp. 3.56
trillion, an increase of 22 percent, this sector aims to ensure an
equitable distribution of regional development.

     -- Mining and Energy: This sector will receive Rp. 3.28
trillion, up by 9 percent.  Most of the funds will be used for
power generation, so that the national power generation capacity
will be raised to 2218 MW.

     -- Agriculture and Irrigation: Agriculture's key role in
Indonesia's development strategy will be supported by a Rp. 3.6
trillion budget, an increase of more than 18 percent.

     Within the overall FY 1993-94 development budget, the total
allocation to special schemes operating under direct Presidential
funding (known as INPRES programs) has been increased by 16.3
percent to Rp. 4.86 trillion.  INPRES programs allow the direct
flow of funds to local governments without federal intermediation.

     Among the INPRES programs, the "Dati III" program designed to
develop local infrastructure and help create new jobs will receive
Rp. 1.02 trillion, an increase of 14.7 percent.  Reforestation and
"regreening" initiatives will also receive a boost, to Rp. 104
billion, increasing 7.3 percent over last year.

     In terms of overall economic performance, Indonesia's total
exports are projected to rise by 11.4 percent in FY 1993-94 to a
record $37.2 billion.  Oil and gas exports will continue to be the
largest single source of foreign exchange earnings, comprising
$10.09 billion or 27 percent of total exports.

     Indonesia's manufactured, agricultural and other non-oil
exports will continue to grow, rising by nearly 20 percent to $27.1
billion, or comprising 72.8 percent of total exports.

     The underlying health of the Indonesian economy is also
reflected in its foreign reserves position.  Foreign reserves held
by Bank Indonesia, the central bank, will amount to an estimated
$11.9 billion at the end of the current fiscal year and are
projected to reach $13 billion at the end of FY 1993-94.

     The new budget also projects inflation at 5 percent, roughly
the same as the current level, but significantly down from the
level in 1991.  In real terms, therefore, the budget growth for FY
1993-94 represents a modest increase of 6 percent over the present
year.

     As a consequence of measures to control inflation, slightly
slower growth of Indonesia's GDP is projected.  Having achieved a
6.6 percent growth in 1991-92, GDP growth of 6 percent is estimated
for both the current and the upcoming fiscal years.

     (This material is being transmitted by Hill and Knowlton,
Inc., a person registered with the Department of Justice,
Washington, D.C., as an agent of the Republic of Indonesia retained
to provide public relations advice and assistance.  Pursuant to the
requirement, the material aforesaid is available for inspection at,
and copies are filed with, the Department of Justice.  Such
registration does not indicate approval by the United States
Government of the contents of this material.)


     -0-                        1/7/93
     /CONTACT: Anthony Whittingham of Hill and Knowlton, 212-697-
     5600, for NDIO/


... C.A. KOWIK
... KOWIK@MARY.FORDHAM.EDU
=========================================================================
Date:         Sat, 9 Jan 1993 14:22:24 -0500
Reply-To:     Indonesian Development Studies - Network <IDS@SUVM.BITNET>
From:         KOWIK@MARY.FORDHAM.EDU
Subject:      CZECH, SLOVAK

FROM: BLOOMBERG

BBN 12/31 (XIN)-INDONESIA RECOGNIZES CZECH, SLOVAK

     JAKARTA (DEC. 31) XINHUA - THE INDONESIAN GO HAS MADE A
DECISION AS FROM DECEMBER 31, 1992 TO FORMALLY RECOGNIZE AND
ESTABLISH DIPLOMATIC RELATIONS WITH CZECH AND SLOVAK.

     A PRESS RELEASE FROM THE FOREIGN MINISTRY TODAY SAID THAT THE
INDONESIAN FOREIGN MINISTER HAS RESPECTIVELY SENT LETTERS TO
FOREIGN MINISTERS OF CZECH AND SLOVAK INFORMING THEM ABOUT THE
DECISION OF THE INDONESIAN GOVERNMENT.

     CZECH AND SLOVAK WILL FORMALLY BECOME TWO REPUBLICS FROM
JANUARY 1, 1993.


... C.A. KOWIK
... KOWIK@MARY.FODHAM.EDU

=========================================================================
Date:         Sat, 9 Jan 1993 15:12:49 -0500
Reply-To:     Indonesian Development Studies - Network <IDS@SUVM.BITNET>
From:         KOWIK@MARY.FORDHAM.EDU
Subject:      BENSIN

From: Bloomberg

BBN  1/08 (UPI)-INDONESIAN PRICE RISES PROMPT ECONOMIC WORRIES

     JAKARTA, Indonesia (JAN. 8) UPI - Higher domestic fuel prices
and electricity tariffs prompted legislators and business leaders
here to worry Friday that the government move would mean a rise in
inflation and a drop in export competitiveness.

     Sri Bintang Pamungkas, legislator from the Muslim-backed
United Development Party, urged the government to cut lending rates
to offset higher manufacturing costs, saying cutting fuel subsidies
would reduce the competitiveness of Indonesian exports.

     The government Thursday announced a 5 percent to 27.2 percent
increase in domestic fuel prices, with electricity rising an
average 13 percent.

     Businessmen and lawmakers said the simultaneous increases
would put strong pressure on prices and could prompt a drastic
increase in interest rates, in line with the government's anti-
inflation policies.

     In 1992, the government kept inflation to 4.94 percent. One
source said the increases could put off foreign investors, citing
existing competition from China and the Philippines.

     In announcing the higher prices Thursday, Trade Minister
Arifin Siregar said the move would hit businesses but spare
exports.


-0- (BBN) Jan/08/93  13:41


... C.A. KOWIK
... KOWIK@MARY.FORDHAM.EDU
Comments: Gated by NETNEWS@AUVM.AMERICAN.EDU