US lawmakers reject trade proposal

Gibran Irfani Abdulllah
1801441436

The US House of Representatives has rejected a high-profile trade bill backed by the White House.

President Barack Obama made a rare trip to Capitol Hill to drum up support for his "fast track" bill but Democrats in the House voted it down.

The measure would have allowed Mr Obama to negotiate global trade deals Congress could not change, but still approve or reject.

House Minority Leader Nancy Pelosi led the charge against Mr Obama's plea.

Mrs Pelosi called on fellow Democrats to "slow down the fast track to get a better deal for the American people".

The vote specifically was for legislation to renew federal aid for workers who lose jobs because of imports.

S&P cuts UK outlook on EU exit vote

Gibran Irfani Abdullah
1801441436

The ratings agency Standard and Poor's (S&P) has cut its outlook for the UK economy because of a planned referendum on EU membership.

The referendum "represents a risk to growth prospects" for the country's economy, S&P said in a statement.

S&P changed its outlook to negative from stable but kept its current rating on the UK the same.

Prime Minister David Cameron has promised an in-out referendum on the UK's membership in the EU by 2017.

Responding to the move, the Treasury said: "We are the first to say that this is a time of heightened risk that threatens the recovery, which is why we need to go on working through the plan that is delivering economic security.

"Central to that plan is giving the British people their first say on our EU membership in forty years and resolving the uncertainty around Britain's relationship with the EU," it added.

The true scale of Tony Blair's global business empire

Gibran Irfani Abdullah
1801441436

Secret documents seen by the Telegraph disclose details of private jets, five-star hotel stays and police guards funded by taxpayer.

The scale of Tony Blair’s globe-trotting is exposed for the first time in secret documents that suggest the taxpayer is paying up to £16,000 a week to help the former prime minister build his business empire.

Documents seen by The Telegraph contain details of Mr Blair’s travels around the world, accompanied by a squad of police bodyguards, flying on private jets and staying in five-star hotels.

The files suggest Mr Blair has used identical trips to carry out both private business meetings and talks in his capacity as Quartet Representative to the Middle East – leaving him open to accusations of a potential conflict of interest.

US, Russian Navies Meet For First Time Since Ukraine Crisis To Discuss Ways To Avoid Accidental Clashes

Gibran Irfani Abdullah
1801441436

The U.S. and Russian navies held talks earlier this week to discuss how to avoid accidental clashes between both forces at sea and in the air, a U.S. naval official said Friday. It was the first meeting involving naval officials from both countries since the crisis in eastern Ukraine deteriorated ties between Washington and Moscow.
Russia’s annexation of the Crimean peninsula, as well as its alleged military involvement in the Ukrainian crisis has led to the worst rift in U.S.-Russia relations since the Cold War. While Russia has stepped up surveillance of NATO’s defense capabilities over the past few months, the intergovernmental military alliance has also increased its military presence in eastern Europe, Reuters reported, adding that the two navies last met in November 2013.
“There was an open, frank and direct discussion ... about how we can better operate in the same bodies of water and avoid miscues, mistakes or miscalculations,” Reuters quoted vice-admiral James Foggo, deputy commander of U.S. naval forces in Europe, a saying. “I think that dialogue was productive.”

Nusa Construction Engineering Dividend Rp 18.5 Billion

Mawaddah Farhany
1801441354

Construction companies, PT Nusa Construction Engineering Tbk distribute a dividend of Rp 18.5 billion, equivalent to USD 3.35 per share, up by 34 percent compared to last year, which totaled US $ 13.8 billion. The company delivers greater dividends despite the company's net profit last year fell. Despite the profit decline, but the company claims that its performance is still better seen from an increase in revenue of Rp 2.03 trillion, an increase of 40 percent from last year with the achievements revenue of Rp 1.45 trillion. In addition to increasing the amount of dividends distributed, the company also raised its dividend payout ratio of 20.88 per cent of net profits to 30.29 of net income. The company also lowered the amount of retained earnings of the Rp 52.3 billion to Rp 36.54 billion or 59.75 percent of profit in 2014, despite capital expenditure this year is also greater than ever before.

www.cnnindonesia.com

JCI Touch Lowest Level Since Beginning of Year

Mawaddah Farhany
1801441354

Composite Stock Price Index (CSPI) closed corrected ahead of the Fed's meeting on 16 June 2015. The index fell by 98 points (1.99 percent) to 4,837 after moving between 4837-4926 on Monday. That level is the lowest point since the beginning of this year stock index, which earlier had touched 4899.88 on June 9, 2015. Furthermore, if calculated since the beginning of the year (year to date), the composite index has plummeted to 7.45 percent from 5226 points , 95 at the end of 2014. A total of 51 stocks rose, 233 stocks declined, 78 stocks did not move, and 192 shares not traded. All sectors fell, led by property sector fell 3.31 percent and the plantation sector which fell 3.10 percent. From Asia, the majority of stock indices moved lower. The condition is indicated by the Nikkei 225 index in Japan fell by 0.09 percent, Hang Seng index in Hong Kong fell by 1.53 percent, and the KOSPI Composite index in South Korea fell by 0.48 percent. This afternoon, the majority of European stock markets also weakened since it opened this afternoon. FTSE100 index in Britain dropped 0.72 percent, Germany's DAX fell 1.23 percent, and the CAC in France fell 0.82 percent. Meanwhile, in the foreign exchange market, the exchange rate appreciated by 8 points (0.06 percent) to Rp 13 326 per US dollar (US), after moving in the range of USD 13 313-USD 13 350 per dollar.





www.cnnindonesia.com

The Trans-Pacific Partnership is No Secret Deal

Mawaddah Farhany
1801441354

Critics' claims that the proposed Trans-Pacific Partnership is a secret deal simply don't hold water.

A few weeks ago, Sen. Barbara Boxer, D-Calif., soared into full-throated whine mode on the floor of the Senate. Having blasted the Trans-Pacific Partnership agreement as a secret deal, she finally had availed herself – after months of complaining – of her privilege to read the entire draft. She was now incensed that she and her accompanying staff were not allowed to take physical copies of the current (and ever-evolving) draft of the 29 chapters out of the building.

What she neglected to mention (or maybe even know) was that the rules for viewing trade agreements were not something newly concocted by the Obama administration. They were put in place by the Congress itself. Though now controlled by Republicans, the security arrangements go back to the NAFTA negotiations of the early 1990s, and have been renewed by Republicans and Democrats alike. Boxer opposed the Trans-Pacific Partnership even before reading parts of the text; and like other congressional opponents of the agreement, she is just using the "secrecy" ploy as another arrow in the quiver of darts to bring down the trade deal.

www.usnews.com

The house Need to Pass Trade Promotion Authority

Mawaddah Farhany
1801441354

Protectionists and xenophobes are holding up much-needed trade promotion authority in Congress.

The U.S. economy has been stagnant since before the beginning of the Obama administration. It's true the president has done little, if anything, to makes things better; massive government stimulus programs costing trillions where much of the money is lost, Mr. President, do not work.

The economy needs a kick to start it moving in the right direction. New trade deals with the European Union and what has been labeled the Trans-Pacific Partnership could be just the thing needed to get exports up, reduce the trade imbalance and, most importantly, put people back to work.

Since the signing of NAFTA during the Clinton years, the U.S. trade agenda has been largely moribund for a lot of reasons. Where the U.S. could have been aggressive in its pursuit of additional bi- and multi-lateral trade agreements, it has been timid. The last years of the George W. Bush presidency and the first years of Obama's, where trade protectionists held the majority in Congress, it was admittedly pointless to attempt such deals.

Trade promotion authority is critical to America's future competitiveness and ability to participate in the global economy. The nationalistic retrenchment that is occurring in some parts of the Republican Party on national security matters should not be allowed to spill over into the economic arena. Global tariffs, which are really just another form of taxes, must come down. Trade agreements do that while establishing rules of conduct on which everyone is agreed, making trade not just "freer" but "fairer."

The House should join the Senate in giving trade promotion authority to the president. This does not obligate lawmakers in any way to approve any of the trade deals he may submit to them once he has it. The Trans-Pacific Partnership and other agreements could still be voted down if, as some people are already arguing out of their gut and without the benefit of insider knowledge, it actually is a bad deal for the American worker. 

www.usnews.com

Export-Import Bank Heading Toward Closure

Mawaddah Farhany
1801441354

Most in Congress think the bank's charter will expire, at least temporarily. More than 80 years after it was founded in the midst of the Great Depression, the U.S. Export-Import Bank could be nearing its end. And it could come down to partisan politics.

The charter authorizing the credit agency, which is charged with accepting credit risk to help spur the sale of American-made goods abroad, expires at the end of June. While for most of its history, the bank was so uncontroversial that its charter was renewed without so much as a recorded vote, a growing outcry from conservatives in the past few years has imperiled it. Supporters say the bank, which primarily guarantees loans taken by U.S. businesses to sell products overseas, is hugely important to small- and medium-size businesses and is an engine for job creation and opening new markets overseas. In the 2014 fiscal year that ended in October, the bank provided $20.5 billion in credit assistance. It did so at no cost to the taxpayer, and actually returned $675 million to the U.S. Treasury from interest and fees. If the bank were to close, a large corporation like Boeing would have to take on more of its own risk, but not stop exporting planes. But smaller companies often rely on the bank to make loans to foreign buyers for their products, and could see significant hits to their sales and profits.

www.usnews.com

Indonesia Surplus in April 2015

Mawaddah Farhany 
1801441354

Indonesia recorded a USD 0.45 billion trade surplus in April of 2015, rebounding from a 1.96 billion deficit reported a year earlier and beating market consensus, as imports declined more than exports. 

In April, exports fell by 8.46 percent year-on-year to USD 13.08 billion. Sales of non-oil and gas products fell by 0.13 percent to USD 11.63 billion and those of oil and gas dropped by 45 percent to USD 1.46 billion.

Imports declined by 22.31 percent year-on-year to USD 12.63 billion. Purchases of non-oil and gas products fell by 18.06 percent to USD 10.30 billion and those of oil and gas decreased by 36.74 percent to USD 2.34 billion.

Compared to the previous month, exports fell by 4.04 percent. Oil exports declined by 26.68 percent and sales of non-oil and gas products declined by 0.13 percent. By products, sales increased for: fat and animal/natural oils (+17.18 percent to USD 1.85 billion), rubber and rubber articles (+10.79 percent to USD 549.9 million), footwear (+21.58 percent to USD 416.4 million), chemical products (+20.91 percent to USD 252.8 million) and iron and steel (+26.55 percent to USD 115.3 million). In contrast, outbond shipments declined for: mineral fuels (-11.73 percent to USD 1.50 billion); machinery/electrical equipments (-3.72 percent to USD 737.8 million); pearls/gems (-10.59 percent to USD 512.9 million); knitted wear (-11.89 percent to USD 261.3 million) and ores, slag and ash (-53.69 percent to USD 99.5 million).

Sales to the country's major trading partners were mostly up except those to Japan, the ASEAN countries and South Korea. Those to India increased the most by 8.73 percent to USD 1.19 billion, followed by China (+6.26 percent to USD 1.18 billion), the US (+3.41 percent to USD 1.38 billion), the EU countries (+8.62 percent to USD 1.33 billion), Taiwan (+9.7 percent to USD 381.2 million) and Australia (+5.49 percent to USD 174.2 million). In contrast, sales to Japan declined by 11.50 percent to USD 1.03 billion), the ASEAN countries (-4.91 percent to USD 2.31 billion) and South Korea (-11.41 percent to USD 436.3 million).

Compared to the previous month, imports increased by 0.16 percent. Purchases of oil and gas in rose by 3.0 percent while those of non-oil and gas decreased by 0.46 percent. Imports of raw materials fell by 3.86 percent to USD 9.70 billion. In contrast, those of capital goods declined by 13.62 percent to USD 21.52 percent to USD 2.03 billion million) and purchases of consumption goods decreased by 2.10 percent to USD 910.8 million).

In March 2015, the country posted a revised USD 1.02 billion trade surplus.

Indonesia has been running a consistent trade surpluses since December 2014.

http://www.tradingeconomics.com/indonesia/balance-of-trade

Rupiah strengthens 20 points to Rp 13,250

Amanda Venska
1801446102

The rupiah interbank trade rate increased by 20 basis points to Rp 13,350 per dollar in the first trading session on Tuesday from Rp 13,370 in the previous trading session. Mandiri Securitas chief economist Aldian Taloputra said that BI had revised several regulations on foreign exchange transactions with the aim of giving protection to companies that are able to prevent the rupiah from falling further.

The revised laws were BI Regulation No. 16/16/2014 on foreign exchange transactions between banks and domestic parties, Regulation No. 16/17/2014 on foreign exchange transactions between banks and foreign institutions and Regulation No. 5/13/2003 on banks' net foreign exchange position. The revision of the regulation has been effective as of June 1.

Apple makes product upgrades, pushes into streaming music

Amanda Venska P
1801446102

Apple announced a major new foray into streaming music on Monday as it showed off a host of new software features for its iPhones, iPads and Mac computers.

The US$10-a-month music service is called Apple Music and combines on-demand listening, a 24/7 radio station hosted by live DJs and a forum for artists to give fans behind-the-scenes content from upcoming releases.

The service, which was announced during Apple's annual software conference Monday, will be launched later this month in more than 100 countries. It comes at a time when iTunes songs and album sales are falling, while streaming music leaders like Spotify and Deezer are gaining subscribers and revenue.

The music service was the biggest news of the company's five-day conference, but Apple also announced a host of new upgrades and services coming later this year to the operating software for its popular iPhones, iPads and Mac computers.

The new features including enhancements to Siri, the company's voice-activated digital assistant, as well as Apple Pay, Apple Maps and the Apple Watch. Executives also mentioned a new streaming TV service that Apple is reportedly hoping to announce later this year.

Analysts say the new services and upgrades, which will be available when Apple releases free updates to its iOS and Mac OS software this fall, are part of a broader strategy to make Apple's devices indispensable.

Some of the new features could provide new profits for the tech powerhouse. But perhaps more importantly, they may help keep customers from defecting to rivals like Google, which showed off new features for its competing Android mobile software at its event last month.

Asian stocks lower on weak China CPI, Dow's dip into red

Amands Venska P
1801446102

Asian stock markets were mostly lower Tuesday, hit by a sagging Wall Street and deadlocked Greek bailout negotiations. More weak Chinese economic data further clouded the gloomy outlook.

KEEPING SCORE: Japan's Nikkei 225 lost 0.8 percent to 20,292.94 and Hong Kong's Hang Seng fell 0.9 percent to 27,060.09. The Shanghai Composite shed 1.6 percent to 5,050.34. But South Korea's Kospi held steady at 2,065.74 and Australia's S&P/ASX 200 gained 0.2 percent to 5,511.00. Shares in Southeast Asia were mostly lower.

GREEK DEBT: Talks between Greece and its creditors have been deadlocked since late last week. Greek Prime Minister Alexis Tsipras rejected as unacceptable a proposal made by the three institutions overseeing the country's bailout: the European Central Bank, the International Monetary Fund and the European Commission. An agreement is needed by June 30, when Greece's emergency financing program ends.

THE QUOTE: "Against a backdrop of ongoing bond value destruction, the Greek PM's latest piece of interpretive dance, and better than expected US jobs data, markets face a turbulent week as they digest a smorgasbord of data," Michael McCarthy, chief market strategist at CMC said in a commentary.

WALL STREET: The Dow Jones industrial average slipped into the red for the year on Monday as stocks extended their slump, with big losses among airlines. Investors remain cautious over the possibility that the U.S. Federal Reserve will raise its benchmark interest rate later this year for the first time since the 2009 global recession after a strong jobs report last Friday suggested that the economy is recovering from its winter slump. The Dow fell 82.91 points, or 0.5 percent, to 17,766.55, giving it a loss of 0.3 percent for 2015. The Standard & Poor's 500 dropped 13.55 points, or 0.7 percent, to 2,079.28.

CHINA FACTOR: China's inflation benchmark slipped to 1.2 percent in May from 1.5 percent the month before, signaling weak demand and continued deflationary pressures. That followed Monday's report that both imports and exports contracted again in May. The string of lackluster data are adding to pressures for further stimulus to prevent the slowdown becoming a sharp slump.

ENERGY: Benchmark U.S. crude gained 25 cents to $58.39 a barrel in electronic trading on the New York Mercantile Exchange. It fell 99 cents Monday to close at $58.14 a barrel in New York after import data suggested a slowdown in Chinese trade, which could lead to weaker global demand for diesel, gasoline and other fuels. Brent crude, a benchmark for international oils, rose 18 cents to $63.41 a barrel. It fell 62 cents to close at $62.69 in London on Monday.

CURRENCIES: The U.S. dollar slipped to 124.45 yen from 124.62 yen on Monday. The euro climbed to $1.1317 from $1.1278.

Stock market falls below 5,000

Amanda Venska P
1801446102

The stock market tumbled below its psychological barrier of 5,000 to hover at around 4,858.31 during midday trading on Tuesday, a level not witnessed since the second quarter of 2014.

The benchmark Jakarta Composite Index (JCI) fell by 3.12 percent at the afternoon session closing, led by a 4 percent drop in banking and property shares.

Among those who recorded the steepest declines were Bank Mandiri (4.61 percent), Bank Rakyat Indonesia (5.91 percent), Bank Negara Indonesia (4.98 percent), Astra International Indonesia (3.97 percent), Unilever (3.79 percent), Adhi Karya (8.08 percent) and Wijaya Karya (6.31).

"Investors were shaken by an improving US economy and a possible increase in the US Federal Reserve interest benchmark later this year. Also, some securities decided to trim their outlooks," said Andreas Yasakasih, Valbury Asia Asset Management investment director.

Earlier on Tuesday, Mandiri Sekuritas set its target for the stock index to 4,500 from 5,450. It was the second revision from its initial outlook of 6,000

RI’s inclusive finance targeted to rise to 90% by 2017

Amanda Venska P
1801446102

The Financial Services Authority (OJK) is targeting that Indonesia’s inclusive finances, which include people’s banking and financial literacy as well as banking participation, will reach 90 percent by 2017.

“We will continue to educate people and push them to become banking consumers. We will also continuously push the related parties to become bank agents,” OJK commissioner council chairman Muliaman D. Hadad said as quoted by Antara news agency after he opened a finance literacy international seminar in Nusa Dua, Bali, on Tuesday.

OJK survey data shows that in 2013, the level of finance literacy in Indonesia stood at 21 percent while the public’s inclusiveness as banking consumers reached 59.7 percent.

With such a low level of inclusive finance, Muliaman said, the government, local administrations and the OJK had to boost banking assistance and education activities as well as micro, small and medium enterprises’ acceptability.

Among efforts the OJK had conducted to boost inclusive finance were creating branchless banking programs, he said.

Muliaman said branchless banking programs were targeting people living in remote areas that were far from banks’ reach, poor people and people in cross-border provinces. 

“Branchless banking is a communication and technology innovation as it uses telecommunication providers that are an important part of banking penetration efforts and education tools,” said Muliaman.

Currently, at least 16 national banks in Indonesia have expressed their commitment to the branchless banking program by creating hundreds of thousands of agents, as the extension of banks, which have a duty to educate people and involve them in the financial sector

US international trade gap at $40.90 billion in April vs. $44.0 billion expected

The U.S. trade deficit narrowed in April as exports of services hit a record high and imports fell.The U.S. Commerce Department on Wednesday said that the U.S. trade gap shrunk to $40.9 billion in April, down from March's revised deficit of $50.6 billion. The March deficit was previously reported at $51.4 billion. 

The 26.6 percent drop in the April trade deficit was the largest decrease since early 2009.