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Indonesians will enjoy lower fuel, cooking gas and cement prices next week, yet prices of other goods and services may not immediately follow suit as business struggle with a weakening currency and high distribution costs.
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Bank Indonesia announced on Thursday it decided to maintain its benchmark interest rate (BI rate) at 7.75 percent with lending facility interest rate at 8 percent and deposit facility at 5.75 percent.
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The government is set to announce another cut in the prices of subsidized premium gasoline, diesel oil, and liquefied petroleum gas (LPG) on Friday (Jan. 16). Energy and Mineral Resources Minister Sudirman Said stated here on Wednesday that the government had shortened the fuel pricing period to biweekly from monthly as originally planned.
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The Indonesian government has set a fuel subsidy of only Rp81 trillion in the 2015 revised budget, down from Rp276 trillion set previously in the 2015 budget. "The value includes carryover debt from last year totaling Rp25 trillion to Pertamina," Finance Minister Bambang Soemantri Brodjonegoro stated here on Friday.
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Effective January 1, 2015, the basic prices of all fuel oils (BBM) will be determined by the government, including that of non-subsidized RON 92 Pertamax gasoline, an energy ministry official stated here on Friday.
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Indonesia succeeded in controlling its inflation down to 8.36 percent in 2014 despite recent cut in subsidies on energy.
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Consumption of non-subsidized gasoline pertamax has increased by some 137 percent since the subsidized fuel price hikes. State-owned oil and gas company PT Pertamina recorded that consumption in the past week has increased to 5,200 kiloliters per day, the companys Vice President for Marketing and Distribution, Suhartoko, said here on Wednesday.
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Indonesian President Joko Widodo (Jokowi) has announced the increase of subsidized fuel oil prices that will take effective at 00:00 am or early Tuesday (Nov 18, 2014).
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Marine Affairs and Fisheries Minister Susi Pudjiastuti has vowed to step up efforts to curb illegal fishing in Indonesian waters, which has caused losses worth trillions of rupiah to the state and disadvantaged traditional fishermen.
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The state oil and gas company Pertamina has forecast an increase of 9 percent in its oil and gas production target for the next year as compared to its projected target for 2014.
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Indonesias foreign debts rose to US$290.6 billion by the end of July from US$284.9 billion a month earlier. The debts included US$134.2 billion owed by government and US$156.4 billion owned by the private sector, data at Bank Indonesia said.
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The future government should have the determination to increase the price of subsidized fuels to prevent fuel subsidy in the state budget (APBN) from soaring, an energy observer reported.
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Bank Indonesia, the central bank, has set aside Rp3 trillion per year to print paper currency, which is considered as a substantial amount, hence the government will encourage the use of non-cash transactions.
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Governor of Riau Province Annas Maamun revealed on Monday that a new oil reserve, presumably the biggest in Riau, was found in Rokan Hilir District by PT Chevron Pacific Indonesia (CPI).
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The government has proposed an economic growth of 5.6 percent in the Draft 2015 State Budget, considering the improvement in economic fundamentals and economic stability as well as conducive external factors.
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Indonesia expects its coffee exports to increase to US$1.4 billion until the end of this year although exports were recorded at only US$333 million in the first semester.
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Chief economic minister, Chairul Tanjung, has not yet agreed to increase the price of the 12-kg gas cylinder although state-owned oil and gas firm Pertamina has plans to raise it.
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PT Bank Central Asia (BCA) Tbk. has cut the interest rate for deposits above Rp25 billion from 9.25 percent to 9.0 percent from this month.
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A number of business associations have called on the government to entirely scrap the fuel subsidy, instead of limiting consumption of subsidized fuel types in certain areas, in a bid to avoid a swell in state spending.
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The Jakarta composite index (JCI) fell 27.27 points in the first minutes of trade on Wednesday on negative sentiment from the escalation of conflicts in Ukraine. The index of the Indonesian Stock Exchange (BEI) opened 0.53 percent lower at 5,081.81 points with index of 45 most liquid stocks down 0.78 percent to 868.63 points.
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Indonesias economic slowdown in the second quarter of this year was in line with macro-economic stability policy adopted by the government and Bank Indonesia aimed especially to control inflation and current account deficit, the central bank said.
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The government is unlikely to raise the subsidized fuel quota of 46 million kiloliters in the revised 2014 state budget even if the quota will be exceeded, Finance Minister Chatib Basri said. "No matter what happens, we have no other choice but to maintain the quota at 46 million kiloliters," he said here on Friday.
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Presidential aspirant Joko "Jokowi" Widodos idea of mental revolution is considered to be an effective way for Indonesia to overtake the progress achieved by Singapore and Malaysia, noted his success teams spokesman Hasto Kristiyanto.
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More than 28.28 million Indonesian people live in poverty as of March 2014 compared to 28.17 million in the same period last year, according to the Central Statistics Agency (BPS). "It was the result of a shift in the number of people working in the agricultural sector due to the impact of climate change, which had led to belated harvest," BPS Chief Suryamin said here on Tuesday.
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The government has decided not to sign Framework Convention on Tobacco Control (FCTC) to protect the countrys tobacco industry, an official said.
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The House of Representatives (DPR RI) agreed to slash the budget of the National Development Planning Agency (Bappenas) by Rp46.47 billion as part of efforts to cut budgets at 86 ministries and government institutions in 2014.
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Bank Indonesia (BI) revised down its prediction of economic growth in 2014, from its initial 5.5-5.9 percent to 5.1-5.5 percent. "The factor that had made us revise the economic growth target down is the revision of export performance," BI governor Agus Martowardojo said at a press conference here on Thursday.
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Under recently passed national regulations, the sale of “Class-A” alcoholic beverages with an alcohol content of between 0-5% can now only take place at minimarkets, hypermarkets and supermarkets and the sale of low-alcohol beverages, such as beer, is no longer allowed at warung kaki lima, small grocers and small food stands.
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Bali's Governor told those attending his monthly open-house town meeting he wants to see every worker in the tourism sector to earn a minimum Rp. 10 million ( US$870) per month. Adding: “In principle, I want to see workers in Bali prosper. Don't let them suffer privations, even though (the privations) are permitted within the law.”
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Finance minister Chatib Basri had predicted Indonesia's economy grew 5.7 to 5.8 percent in the first quarter of 2014, primarily due to consumer spending. The minister said here on Monday consumer spending was expected to rise in March, although the impact had not been felt as of now.
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Indonesia needs to anticipate the ASEAN Open Sky Policy in the aviation sector in the Southeast Asian region in 2015, a senior official said.
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General Chairman of the Peoples Conscience Party (Hanura) Wiranto began his partys campaign activities for the April 9 legislative elections in Blitar, East Java, on Sunday.
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The issue of agriculture is a more important concern than simple economics, because it has a strategic role in the life of the nation, according to Indonesian Farmers Association Chairman Prabowo Subianto.
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An international sea law expert has emphasized the importance of Indian Ocean as Indonesia's future economic and political prospects in view of its natural resources.
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Manpower and Transmigration Minister Muhaimin Iskandar stated that the number of foreign workers in Indonesia continue to decline in the recent two years among other things due to upheaval of investment values.
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The National Aeronautics and Aviation Agency (LAPAN) plans this year to develop pioneer N219 aircraft, thereby spearheading the development of the national aviation industry, noted a minister.
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The Indonesian Consulate General in Dubai repatriated 13 Indonesian migrant workers in the third week of December, an Indonesian diplomat told Antara here on Tuesday. Indonesias consul for social and cultural affairs function at the Dubai Consulate General (KJRI), Adiguna Wijaya, said the Indonesian workers who were repatriated in the third week were female. They originated from West Java and Banten provinces.
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Indonesia needs to revitalize its policies in the migrant workers sector to provide fair treatment for its migrant workers abroad who contribute foreign exchange to the state, an ILO official said.
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President Susilo Bambang Yudhoyono has said Indonesias bargaining position in regional and global relations has been improving as the country plays an increasingly important role in various international forums and organizations.
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Indonesian Vice President Boediono has urged Netherlands Prime Minister Mark Rutte to resolve obstacles in Indonesias palm oil exports. "Palm oil is a very important and sustainable industry in Indonesia. We hope that palm oil exports will increase again," Boediono said during Prime Minister Ruttes official visit at the Vice Presidential Palace here on Friday.
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Indonesia's economy is expected to slow down in 2014 as a result of being impacted by various domestic and foreign factors, said market analyst Surjanto Yasaputera here on Thursday. "The BI rate hike from seven percent to 7.5 percent is one of the factors holding back foreign investors from making new investments," he stated.
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Jakarta governor Joko Widodo, or Jokowi as he is popularly called, made another breakthrough by starting the modernization of peoples markets in the capital city on Wednesday.
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The Jakarta Labor Forum expressed disappointment with Jakarta Governor Joko Widodo for approving a minimum wage of Rp2.441 million per month for Jakarta workers.
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Popular Indonesian singer Agnes Monica, or popularly known as Agnez Monica, has now become one of majority shareholders in Blueberry smartphones manufacturer PT Ninetology Indonesia.
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Jakarta Governor Joko Widodo (Jokowi) said employers and workers should develop harmonious relations so they could jointly decide upon a basic minimum wage without having conflicts.
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Two Indonesian non-governmental organisations have criticised APEC`s decision to boost liberalisation, claiming that it would only strengthen foreign domination in the country.
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A government policy governing the production of low cost green cars (LCGC), which is a best possible solution agreeable to all parties, must be formulated, the Coordinating Minister for Economy Hatta Rajasa said.
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The rapid decline in the value of the Indonesian Rupiah against the U.S. Dollar and a host of other currencies is presenting a myriad of challenges to Bali and its tourism industry.
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The finance minister will soon issue a regulation on an increase in sale tax on foreign-made luxury cars to curb their import, Industry Minister MS Hidayat said. "The ministerial regulation has been prepared," he said here on Thursday.
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The Ministry of Industry has issued a package of policies to maintain the growth of national industries affected by current financial market conditions and the rupiah depreciation.
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PT Angkasa Pura I has revealed that the debt owed to them for airport charges by PT Merpati Nusantara Airline has reached Rp. 38.4 billion (US$3,84 million.) According to Bisnis.com, the head of corporate administration for PT Angkasa Pura I, Harry Budi Waluyo, said that state-owned Merpati also has debts for aeronautic services due to a number of airports managed by Angkasa Pura I and Angkasa Pura II.
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World Bank Managing Director Sri Mulyani Indrawati has suggested a reduction in the remittance fee for members of the Indonesian diaspora from 15 percent to 5 percent.
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The Indonesian government is keen to boost economic growth to six percent amid the global economic meltdown, said Finance Minister Chatib Basri.
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Indonesia`s Manpower Minister Muhaimin Iskandar estimated remittances from migrant workers during the current fasting month and ahead of the post-fasting holiday of Lebaran this year could reach Rp15 trillion.
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Indonesia's inflation may jump to 9 percent this year under the impact of the recent rise in the prices of subsidized fuel oils, World Bank economist Ndiame Diop has predicted.
"The higher fuel prices will first have a greater impact on the inflation rate by increasing average annual inflation rate in 2013," he said here on Tuesday.
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President Susilo Bambang Yudhoyono called on the people to seriously help save on fuel oil consumption in an effort to alleviate the burden of the state budget and preserve the environment.
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Dozens of students who are members of the Executive Board of Riau University`s Students, staged a protest by blocking the entrance to PT Chevron Pacific Indonesia in Rumbai complex, Pekanbaru on Tuesday.
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Most bankers in Indonesia are optimistic the country`s economy would grow strongly in 2013 despite global uncertainties, a survey says. The survey by Price Waterhouse Coopers (PwC) Indonesia said 87 percent of respondents said the country`s economy would post a stable growth with moderate inflation in 2013.
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About 3.7 million people in Indonesia live on oil palm plantations, a senior agriculture ministry said. Speaking to a seminar at Santika Hotel here on Friday, Secretary of the Directorate General of Agriculture Mukti Sardjono said that oil palm played an important role in providing income for the people.
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President Susilo Yudhoyono called on the nation to keep on maintaining the economic conditions to assure continued growth despite increasing political tension ahead of the general elections in 2014.
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The Jakarta Post reports that the province of Bali plans to propose specific bylaws protecting the market for local farmers by controlling the sale and consumption of local fruit.
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The provincial government of Bali has formally become a shareholder in PT Jasa Marga Tol – the operator of the new toll road set to soon connect Benoa – Ngurah Rai Airport – Nusa Dua.
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Indonesia still bans female domestic helpers from working in the Middle East, particularly in countries which are still affected by a moratorium, a minister said.
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Five state-owned companies would cooperate to build a monorail in the Jakarta region to ease traffic congestion in the capital city, State Enterprises Minister Dahlan Iskan said here on Thursday.
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Thousands of workers from the Indonesian Metal Workers Federation (FSPMI) of the greater Jakarta area (Jabodetabek) held a rally here on Wednesday, demanding social security benefits and refusing low wages. "The rally also marks the organization`s 14th anniversary celebration," said the organization`s President Said Iqbal.
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The electricity tariff hike by 14 to 15 percent this year is predicted to save a subsidy budget of Rp14 trillion, an official said.
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The government plans to develop Batam municipality`s coastal areas into a coconut and cassava production center to meet local and national demands, an official said.
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The Bali Post, reporting information from the Bali Statistics Bureau (BPS-Bali), confirms that poverty is on the rise in Bali.The number of “officially poor” in Bali in 2012 (based on a March survey) counted 168,800 impoverished citizens, an increase from the 166,200 estimated in 2011.
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Bali’s governor, Made Mangku Pastika caused considerable comment among the public and the press when, on Saturday, January 5, 2013, did a sleep over at the house of a poor woman in North Bali.
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The district administration of Belu, East Nusa Tenggara, told school teachers in frontier areas sharing border with East Timor in Belu to submit their proposal for special allowance in 2013.
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An increase in the price of electricity beginning this month will reduce the purchasing power of laborers, Said Iqbal, the president of the Indonesian Workers Unions Confederation (KSPI) said.
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The number of poor population in Indonesia drops by 0.54 million or 540,000 until September 2012, according to the National Statistic Agency (BPS).
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Indonesian ambassador to China and Mongolia, Imron Cotan said the 2013 is a momentum to further expand the former`s "footprints" in China, so that the people of both countries can understand each other.
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Once again a movement has been launched in Bali to secure a share of the visa-on-arrival fees (VoA) paid by visiting tourists to Bali that is now entirely remitted to Jakarta.
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After weeks of uncertainty, the Jakarta administration has revealed it will move forward with the plan to construct the city’s first Mass Rapid Transit (MRT) line next year.
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Research and Technology Minister Gusti Muhammad Hatta has stated that Indonesia will produce N-219 transport aircraft in 2014.
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Indonesian aircraft manufacturer PTDI and Airbus Military have strengthened their business partnership through a variety of joint production programs that include long-term agreements between the two companies.
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The government will raise the amount of general allocation funds for mountainous districts in Indonesia`s eastern-most province of Papau next year, a presidential aide said.
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President Susilo Bambang Yudhoyono said he would remove anyone who is considered uncooperative or a hindrance to development efforts.
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Finance Minister Agus Martowardojo said the country's budget deficit is expected to widen to more than the previously set target of 2.23 percent as a result of growing energy subsidy.
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Indonesian Manpower Minister Muhaimin Iskandar has expressed concern due to the increasing number of unemployed university graduates in the country.
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The government has assured it will go ahead with its plan to construct the Sunda Strait Bridge (JSS) while the relevant parties are still discussing it, according to Public Works Minister Djoko Kirmanto.
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Jakarta Governor Joko Widodo said the Jakarta administration could not satisfy all in connection with his decision to raise provincial minimum wage (UMP) from Rp1.5 million per month to Rp2.2 million in 2013. "It is difficult to satisfy all," Jokowi, as Joko Widodo is popularly called, said here on Wednesday.
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The Hindu Business Line reports that the GVK Group, an Indian company listed on that country’s stock exchange, has finalized an agreement for the operation, management and development of commercial facilities at Bali’s Ngurah Rai International Airport.
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Manpower and Transmigration Minister Muhaimin Iskandar has said the increase in Indonesian labourers` minimum regional wage, or UMR, will be decided in the middle of this month.
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Minister of National Development Planning Armida S. Alisjahbana urged Jakarta, as the nation`s Capital, to provide better mass transport system to support its citizens mobility effectively. "As a big city, as well as the nation`s capital, Jakarta badly need a mass transport system," Armida said during a working visit here on Sunday.
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The railway directorate general said it will start construction of double rail track between Kroya and Kutoarjo, Central Java in 2013. "The project of the 76-kilometer track is the second phase of of a rail track project in southern part of Java," Surono, the chief spokesman of state railway company (PT KAI), said here Tuesday.
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A plan put forward by Indonesia’s Minister of Natural Resource and Energy, Jero Wacik, to build a championship golf course on the foothills of Mount Batur on the western escarpment of the volcano, is getting a lukewarm response from many parties in Kintamani.
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President Susilo Bambang Yudhoyono has stated that the reduction of poverty in the country must be the next government`s top priority.
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Legislators from the Badung House of Representatives (DPRD-Badung) are complaining that lax collection policies by tax authorities are costing the regency substantial revenues in underpayment of taxes by nightspots and discothèques.
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The spokesman for PT Jasa Marga – the consortium building the new Benoa – Ngurah Rai – Nusa Dua toll way has compared the road network in Bali to a patient suffering from coronary disease.
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Thousands of workers in Riau Island stated they will conduct a strike if the government doesn`t respond to their demand, a source said. "We want the government to abolish the outsourcing system, cheap wages and corruption," Chairman of Riau islands` Indonesian Metal Workers Federation (FSPMI) Otong Sutisna said here on Sunday.
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Finance Minister Agus Martowardojo said the US$27.8 billion Sunda strait bridge project would not burden the state budget. "The project would not be a burden for the state burden now or in the future," Agus told the lawmakers in a meeting here on Tuesday.
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State enterprises minister Dahlan Iskan said here on Thursday he would continue with Adhi Karya`s plan to build a 13-km long monorail network in Jakarta although governor Fauzi Bowo has said it is already outdated.
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President Susilo Bambang Yudhoyono said the government would increase the basic salaries of civil servants, military and police personnel by seven percent in 2013.
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President Susilo Bambang Yudhoyono has said that Indonesia is determined to become a world leader by 2045.
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Indonesia still has a lot of opportunities to strengthen its industries due to continuing investment growth, a presidential aide said.
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Radar Bali reports that data from the Denpasar Manpower Department shows more than 500 foreign workers are currently registered with their office.
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As of March 2012, the number of poor people in Indonesia has decreased from 30.02 million people seen last year to 29.13 million this year--a remarkable 890,000 people decrease in the number, said Chairman of National Statistic Agency Suryamin here on Monday.
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National Development Planning Minister Armida Salsiah Alisjahbana denied on Monday that Indonesia was a failed state, saying the country was making progress. "We are not a failed state because we are improving. By scoring 80.6 points in a recent survey, we are moving closer to a moderate level," she told a press conference here.
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