Still Can Deflation in May

Central Bureau of Statistics (BPS) estimates that deflation is still going to happen this month of May. However, deflasinya still lower than last April because of rising prices pertamax and jewelry. Prices of basic needs are still relatively decreased, except rice and sugar. can be concluded there is huge potential for deflation, even though its potential may be smaller than last month.

Price pertamax against inflation is still quite small. Especially gold jewelry price increase also has a small weight. In Budget 2011, the inflation target of 5.3% of control dilevel. In the main points of policy Fiscal 2012, the government said inflation in 2011 could be higher at 6.0% position. Finance Minister says the change has been mostly due to projections of global factors "that later one in 2011 inflation reached 6%, it is because domestic factors, but also globally.

Last April to 0.32% deflation. By April the rate of inflation deflation calendar year (January to April) only reached 0.39%. whereas the year of year inflation reached 6.16%. Inflation in April reached the core component of 0.25%. Calendar year core inflation rate reached 1.31%. Currently, energy prices are still a scourge of inflation. If the price premium is increased to Rp 1,000, will provide an additional inflation of 0.5 to 0.6%. If the premium is removed, the impact on inflation will be greater again to 1.6%. This is because all consumers would switch to pertamax is pegged to the market price.

Read More

Plus The Fuel Subsidy Quota Proposed

Downstream Regulatory Body (BPH) oil propose the addition of subsidized fuel quota in the draft budget of Revenue Expenditure (RAPBD) changes in 2011, from 38.59 million kl (KL) are set out in Budget 2011, so 40.20 million KL. Summary of the volume of subsidized fuel prognosis for the State Budget in 2011 amounted to 40.20 million KL or 4.1% of the volume set out in Budget 2011 at 38.59 million KL. for the premium increase from 23,190,505 to 24,160,483 TOS or an increase of 4.1%. Medium diesel be increased from 13,094,952 14,726,362 KL. Calculation of the addition of the volume of fuel bersudsidi in this draft budget given the ever increasing use of subsidized fuel due to population growth, economic, and therefore contributes to the growth of motorcycle vehicles.

Read More

The Increase in TDL Affect Industry Competitiveness

The design of electric power rate increase (TDL) of 15-20% which is disclosed by Finance Minister Agustin Martowardojo, received responses from industry minister MS Hidayat. Hidayat rate, if the increase in TDL is not accompanied with the support of incentives for the industry, then this design will have an impact on industrial competitiveness homeland.

Also according to him, if followed TDL ride without a certain level of efficiency in the PLN, the burden of the government for subsidies would still be great. Therefore, he said that the company should be given targets including reducing their margins from 8% to 3%.

TDL increase for the industry will be felt seimbangbila followed by another rate improvements, such as bank interest, production subsidies or tax incentives. So therefore, the cost economics of production can be balanced despite increase in TDL.

Read More

Declining Inflow Bank

Inflow (demand) disbursement of money from the banks at Bank Indonesia in the period January-March have increased, while the second week in April and May experienced a slight decline. Of note BI, Inflow bank for the type of bank notes and coins, reach Rp94 billion in January, February Rp96 billion, Rp 288 billion in March, April and May of Rp 160 billion Rp 63.6 billion. This inflow, the BI did not know what the bank intended to, because no authority BI.

The difference with the outflow, where the bank account deposit funds in BI with a certain amount, then the BI to conduct examination of money deposited if no different from a count conducted BI, the bank mailed the above deficiency. So is the money saved would not meet the eligibility or replace worn-out then the BI, the BI did rekapitulsi inflow each month. And frequency of requests for money from the bank was not the same as well as the amount.

Inflow conducted by the bank, the bank simultaneously know the exact use, while BI is no longer in that domain.

Read More

BI Publish Anti-Fraud Guidelines

Bank Indonesia will publish Guidelines for Anti-Fraud Strategy as a response to rampant burglary fund bank customers, particularly in the premium service. The strategy includes four phases. The first stage of preventive stage, cover the use of governance, active oversight of management, and application of the principle of know your employee, the second phase with a detection system also includes whistleblowing, fraud data, and reporting. 

Third, the investigation phase. This phase includes the standard investigation, evaluation of the weaknesses of the system and the imposition of sanctions. While the fourth includes the monitoring, including evaluation of fraud risk assessments and apptite banks. 

Limitation of banks and non-bank products is now very blurred. Thus, BI will coordinate with the supervisory authority of financial institutions and non bank deposit insurance institution. BI also has revealed details of the examination of 23 banks are prohibited from adding premium customers within the next year. 

Because there is a decisive number of innovative products and services that do not matched by the readiness of banks to mitigate the operational risks that occur including the possibility of money laundering. BI then reveal a number of weaknesses organization of fund raising customers' premiums. 

First, the weakness in top management perform periodic review and monitoring of policies, the consistency of implementation of standard operating procedures (SOPs) and internal control the bank. 

Second, weaknesses in the implementation of policies, systems and procedures, as well as human resource policies, such as applying the principle in the bank. 

Third, the weaknesses of information management systems that integrate not deposit products with a portfolio of customers. 

Fourth, the weaknesses in internal control as there is no sudden its auditing system and weaknesses in business processes. Examples of weaknesses include relationship managers who can modify the personal data of customers and knowing the customer withdrawals by others without power of attorney.

Read More