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Policy Package, Indonesian Economy Believed to be Above World Bank Prediction

06

Oct

Policy Package, Indonesian Economy Believed to be Above World Bank Prediction

Secretary-General of Coordinating Ministry for Economic Affairs Lukita Dinarsyah Tuwo stated that the Indonesian economy could rise above 5.3 percent [...]

Policy Package, Indonesian Economy Believed to be Above World Bank Prediction. Secretary-General of Coordinating Ministry for Economic Affairs Lukita Dinarsyah Tuwo stated that the Indonesian economy could rise above 5.3 percent if the 13 economic policy packages can be implemented effectively.
`The World Bank predicts our economy will be at 5.3 percent next year and 5.5 percent the year after, but we are optimistic that if all (policy packages) are implemented, the economy should be able to exceed the World Bank's prediction,` Lukita explained at the Bank Indonesia Building on Thursday (6/10/2016).
He explained that if the government did not release these policy packages, economic growth could be below 5.1 percent. Unfortunately, many parties still believe the policy packages are not yet effective enough and do not encourage economic growth in regional areas.
`The economic growth in 2017 will be at 5.1 percent. But many people say the economic packages are not effective yet, so just imagine what would happen if the policy packages did not exist, it would probably drop even lower,` he explained.
`If we look at the policy packages from 1 to 13, the impact does vary. But it is true that we suffer from a chronic ailment, that is why this policy was issued. We hope that this will be what revives our economy,` he added.
(rai)
http://economy.okezone.com/read/2016/10/06/20/1507564/paket-kebijakan-ekonomi-ri-diyakini-di-atas-prediksi-world-bank

CPO PRICE OCTOBER 6: Further Weakening, Still Affected by Soybean Oil Price

06

Oct

CPO PRICE OCTOBER 6: Further Weakening, Still Affected by Soybean Oil Price

The December 2016 CPO futures contract, the most active contract on Bursa Malaysia, fell 0.63% or 16 points to RM2,540 (US$621.87) per ton at 10:19 [...]

World Bank sees steady economic growth for Asia Pacific

05

Oct

World Bank sees steady economic growth for Asia Pacific

"A global financial tightening, a further slowdown in global growth or an earlier deceleration in China would test the resilience of East Asia," said [...]

World Bank sees steady economic growth for Asia Pacific. `A global financial tightening, a further slowdown in global growth or an earlier deceleration in China would test the resilience of East Asia,` said the World Bank's Chief Economist for the East Asia and Pacific Region, Sudhir Shetty, during a teleconference with journalists in Jakarta on Wednesday. The World Bank's latest East Asia and Pacific Economic Update projects that China will continue to transition to slower but still solid growth rates of 6.7 percent in 2015, 6.5 percent in 2017, and 6.3 percent in 2018. Growth in the rest of the region is projected to hold steady at 4.8 percent this year, increasing to 5.0 percent in 2017, and 5.1 percent in 2018. Overall, developing East Asia is expected to grow by 5.8 percent in 2016 and 5.7 percent in 2017-18. In China, growth will moderate as the economy continues to shift toward consumption, services and higher value-added activities, with a reduction of industrial overcapacity. However, a tightening labor market will continue to support wage growth and household consumption. Among developing economies, prospects are particularly strong for the Philippines, where growth is expected to accelerate to 6.4 percent in 2016, and Viet Nam, where growth this year was held back by severe drought but is expected to rebound to 6.3 percent in 2017. `In Indonesia, growth is projected to rise steadily from 4.8 percent in 2015 to 5.5 percent in 2018, conditional on increased public investment, continued improvement in the investment climate, and revenue mobilization,` said Shetty. Growth in Malaysia, on the other hand, is forecast to slow sharply to 4.2 percent in 2016 from 5.0 percent in 2015, due to weaker global demand for oil and gas exports. Meanwhile, growth prospects have deteriorated for several commodity exporters. Mongolia's economy is projected to grow by just 0.1 percent in 2016, down from 2.3 percent in 2015, due to weak mineral exports and debt overhang. Papua New Guinea's economy is forecast to grow 2.4 percent in 2016, down from 6.8 percent in 2015, reflecting lower prices and output for copper and gas. Policy Recommendations To foster inclusive growth in East Asia and the Pacific, the World Bank recommends a range of policy measures. First, China should build on its past success in reducing poverty by improving access to public services for rural residents and the growing numbers of migrants moving to urban areas. Second, other countries need to address infrastructure gaps by rebalancing public spending, enhancing public-private partnerships, and improving the efficiency of public investment management. Third, the World Bank recommends expanding early childhood development programs and micronutrient interventions to address widespread malnutrition. High rates of child stunting in many countries, even middle-income ones like Indonesia and the Philippines, lead to irreversible health deficits. Finally, East Asia and Pacific countries should harness the potential of technology to transform financial services and increase financial inclusion. `The region is quite advanced technologically, with high mobile penetration, but lags in access to financial services,` said Shetty.
Editor: Suryanto
http://www.antaranews.com/berita/588527/bank-dunia-nilai-pertumbuhan-ekonomi-asia-pasifik-stabil

05

Oct

Asia-Pacific economies grow

IMF chief economist Maurice Obstfeld said in a press conference broadcast live from Washington DC, United States on Tuesday at 09:00 AM local time [...]

Asia-Pacific economies grow. IMF chief economist Maurice Obstfeld said in a press conference broadcast live from Washington DC, United States on Tuesday at 09:00 AM local time the number was slightly higher than the IMF's estimate in July 2016 at 4.1 percent and was expected to reach 4.6 percent in 2017.  `Overall, Asia-Pacific continues to show resilience amid the global slowdown,` he stated.  Despite the growth, the IMF noted that there were significant resilience differences among developing economies in the regions. In the Asia-Pacific Region, Chinas economic recovery remained the main factor influencing the economies of surrounding developing countries, including through government policies continuing to shift their dependence from investment and industry towards consumption and services. The policy was estimated to slow down short-term growth, but at the same time could build a foundation for long-term more sustainable economic expansion. However, Obstfeld stated that the Chinese government must act quickly to control credit, which is `increasing at an alarming pace`, and to stop granting capital to unprofitable state-owned companies. Amidst the recovery, the IMF estimated that the Chinese economy would grow 6.2 percent in 2017, lower than the 6.9 percent growth rate in 2016. To increase growth amidst the global slowdown, the IMF encouraged developing countries to continue reforming structurally in order to increase job creation, adaptability of job specialization, and to reduce trade barriers. The IMF will be holding a press conference regarding economic estimates for Asia-Pacific region countries, including Indonesia, on Thursday (Oct 6).
Editor: Ade Marboen
http://www.antaranews.com/berita/588429/ekonomi-asia-pasifik-bertumbuh

U.S. dollar bolstered by comments from Fed official

05

Oct

U.S. dollar bolstered by comments from Fed official

Richmond Fed President Jeffrey Lacker, a non-voting member of the Fed's policy-setting committee, said Tuesday that there was a strong case for [...]

U.S. dollar bolstered by comments from Fed official. Richmond Fed President Jeffrey Lacker, a non-voting member of the Fed's policy-setting committee, said Tuesday that there was a strong case for raising interest rates and that borrowing costs may need to rise significantly to keep inflation under control.  Cleveland Fed President Loretta Mester, meanwhile, said Monday that the U.S. central bank should not delay raising interest rates.  Analysts said the comments from the policymakers added to market speculation of an interest rate hike by the end of the year.  The U.S. dollar index, which measures the greenback against six major currencies, rose 0.46 percent to 96.137 by the end of trading.  In late New York trading, the euro fell to 1.1201 U.S. dollars from 1.1217 U.S. dollars, and the British pound decreased to 1.2739 U.S. dollars from 1.2859 U.S. dollars. The Australian dollar dropped to 0.7621 U.S. dollars from 0.7674 U.S. dollars.  The U.S. dollar bought 102.82 Japanese yen, higher than 101.57 yen in the previous session. The U.S. dollar also rose slightly to 0.9798 Swiss francs from 0.9733 Swiss francs, and gained to 1.3197 Canadian dollars from 1.3117 Canadian dollars. 
Editor: Ade Marboen
http://www.antaranews.com/berita/588438/dolar-as-menguat-didorong-pernyataan-pejabat-the-fed

04

Oct

European Sentiment Weighs on CPO Prices

"For the next week, the price of Fresh Fruit Bunches (FFB) of CPO Riau in the Indonesian commodity exchange has plummeted by Rp135.67 per kg, from [...]

European Sentiment Weighs on CPO Prices. `For the next week, the price of Fresh Fruit Bunches (FFB) of CPO Riau in the Indonesian commodity exchange has plummeted by Rp135.67 per kg, from Rp2.081,78/kg the previous week to Rp1.946,11 for a 10-20 year-old palm,` said Rusdi, Secretary of the CPO FFB Price Setting Team for Riau, in Pekanbaru, Tuesday (4/10/2016). According to Rusdi, the trend was no different from Malaysia, which also showed weakening prices. The drop in Riau CPO prices has also been influenced by the accusations of the government's lack of wisdom in managing the palm oil industry, such as deforestation and destruction of wildlife. However, he said, the Malaysian government has issued a refutation of this allegation submitted by The Malaysia Palm Oil Council (MPOC) CEO Dr Yusof Basiron. `Malaysia has implemented an environmentally friendly palm oil industry since requiring palm oil businesses to have an MSPO certificate, in the same way Indonesia requires an ISPO certificate,` he said. Meanwhile, the German government and industry are also concerned about the environmental impact of palm oil cultivation. German Chancellor Angela Merkel previously raised issues about the sustainability of oil palm plantations in Malaysia. In response, Malaysian Prime Minister Datuk Seri Najib Razak visited Germany to alleviate these concerns. `Given these circumstances, the price of CPO futures is expected to weaken in subsequent trading with negative sentiment from Europe. However, it will also be influenced by the movement of the price of crude oil, which if it continues to strengthen will boost CPO prices and vice versa,` he said. Other contributing factors are the balance of supply and demand, the price of similar commodities or substitutes, and the policies of importing countries. Other commodities that fell this week were oil, corn and soybeans, although their price drops were not as steep as for CPO. He noted that the price of CPO FFB for the Riau Province from 5 to 11 October 2016 was as follows: Rp1.393,91/kg for three-year-old palms, Rp1.555,12/kg for four-year-old palms, Rp1.663,49/kg for five-year-old palms, Rp1.713,73/kg for six-year-old palms, Rp1.778,75/kg for seven-year-old palms, and Rp1.834,29/kg for eight-year-old palms.The price of CPO FFB Riau for nine-year-old palms was Rp1.894,01/kg, 21-year-old palms Rp1.900,89/kg, 22-year-old palms Rp1.854,95/kg, 23-year-old palms Rp1.809,73/kg, and 24-year-old palms Rp1.791,50/kg, while the price for 25-year-old palms was Rp1.718,57/kg. The K index was 91.95 percent with a CPO price of Rp7.931,56/kg and kernel at Rp7.487,29/kg.

Source : ANTARA  Editor : Martin Sihombing

http://industri.bisnis.com/read/20161004/12/589315/sentimen-eropa-tekan-harga-cpo-

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