First-Time Indonesian Voters a Force to Reckon With

First-Time Indonesian Voters a Force to Reckon With

By Nadine Sumedi on 08:05 am Jun 20, 2014

An estimated 67 million voters will be voting for the first time, and their ballots on July 9, 2014 will decide who will be the next president of Indonesia. (JG Photo/Afriadi Hikmal)

Jakarta. The presidential election on July 9 is widely anticipated by a range of Indonesians from all walks of life, from young people to the elderly. The event is seen as an important moment for Indonesians to choose the next leader to shape the country’s future. Read more of this post

Impact of Presidential Candidates’ TV Jousts Is Debatable

Impact of Presidential Candidates’ TV Jousts Is Debatable

By Pandu Rachmatika on 01:26 pm Jun 19, 2014

As the presidential election draws closer, public attention has turned to a series of debates between the two candidates. Many TV pundits and commentators firmly believe that the debates will be “game changers” that determine the final outcome of the July election.

That sentiment is supported by survey results announced by several polling outfits such as Cyrus, whose survey in May showed 58 percent of respondents believed the debates could affect their final choice of candidate. The importance of debates would seem to be substantial, however studies done to measure the effect of debates on polls have turned up results that suggest otherwise. Read more of this post

Indonesian Miners Delay Alumina Refinery Plans on Legal Uncertainty

Indonesian Miners Delay Alumina Refinery Plans on Legal Uncertainty

By Wilda Asmarini & Yayat Supriatna on 01:59 pm Jun 19, 2014

Jakarta. Bauxite producers are delaying plans to build alumina refineries in Indonesia due to legal uncertainty over a mineral ore export ban imposed five months ago, government and industry officials said.

Indonesia’s Constitutional Court has yet to decide on a legal challenge against a Jan. 12 export ban on bauxite, nickel and other mineral ores imposed by the government to force miners to build refineries and processing plants. Read more of this post

Indonesia’s Next Leader to Inherit Fragile Economy: Finance Minister

Indonesia’s Next Leader to Inherit Fragile Economy: Finance Minister

By Novrida Manurung & Neil Chatterjee on 08:44 am Jun 20, 2014

Indonesia’s next president will need to discard election rhetoric and focus on raising fuel prices and luring foreign investment to address the budget and current- account deficits, the outgoing finance minister said.

The economy is still fragile and the incoming administration must prepare for investors pulling funds from emerging markets such as Indonesia when the US Federal Reserve starts to increase borrowing costs, M. Chatib Basri said in an interview in Jakarta on Wednesday. Presidential candidates for the July election, Joko Widodo and Prabowo Subianto, have struck a protectionist tone in campaigning, saying they will look to renegotiate some contracts with foreign investors. Read more of this post

Indonesia Leads Defaults as Bakries Face a Third Time Around

Indonesia Leads Defaults as Bakries Face a Third Time Around

By David Yong & Harry Suhartono on 08:56 am Jun 20, 2014

Indonesia’s Bakrie family is seeking to avoid a third default on its companies’ debt in 16 months as the nation accounts for 74 percent of dollar bond delinquencies in Southeast Asia since 2008.

Coal miner Bumi Resources needs at least three quarters of votes at a noon bondholder meeting in Singapore on Friday to approve extending the maturity of $375 million of convertible bonds due in August by seven years, according to a memorandum sent to investors. The company, which was part of a failed venture between the Bakries and British financier Nathaniel Rothschild, missed a June 5 coupon payment and said it probably can’t redeem the notes without the delay. Read more of this post

BRICS bank: a good idea that can do grave harm

BRICS bank: a good idea that can do grave harm

Fri, Jun 6 2014

(The author is a Reuters Breakingviews columnist. The opinions expressed are his own.)

By Andy Mukherjee

SINGAPORE, June 6 (Reuters Breakingviews) – Brazil, Russia, India, China and South Africa want to clone the World Bank. It’s one of those worthwhile initiatives that can end up causing harm.

While the proposed BRICS Bank could help ease the $1.4 trillion-a-year infrastructure financing gap in developing nations, the new institution’s backers might be tempted to use it to further their own economic and foreign policy objectives. That could open the doors wide for projects that are social and environmental disasters. Read more of this post

Out of the 30 highest paid CEOs of listed Singapore companies, only half have long-term incentives worked into their 2013 pay

PUBLISHED JUNE 20, 2014

More firms align CEO pay with shareholder interest

But compliance remains a slow process, according to Freshwater Advisers pay review

SIOW LI SEN

LISEN@SPH.COM.SG   @SiowLiSenBT

They may have to be dragged into the light, but more Singapore companies are complying with the idea of aligning their interest to those of their shareholders – PHOTO: ST

[SINGAPORE] They may have to be dragged into the light, but more Singapore companies are complying with the idea of aligning their interest to those of their shareholders. Read more of this post

Loss-making budget carrier PT Mandala Airlines, which operates under the brand Tigerair Mandala, says it has decided to cease its operations as of July 1 after battling to keep its business alive

Mandala gives up hope, shuts down operations once again

Khoirul Amin, The Jakarta Post, Jakarta | Business | Thu, June 19 2014, 1:14 PM

Loss-making budget carrier PT Mandala Airlines, which operates under the brand Tigerair Mandala, says it has decided to cease its operations as of July 1 after battling to keep its business alive.
The chairman of Mandala’s board of commissioners, Jusman Syafii Djamal, said in a statement on Wednesday that his firm was no longer able to beat pressure in the country’s competitive aviation industry as well as surging operational costs.
“We have looked at every angle to make this work, and have also discussed with other potential strategic and financial investors. In addition to the overcapacity situation that has put significant pressure on yields, the weakening rupiah, which has depreciated more than 20 percent since the beginning of 2013, has also increased operating costs significantly,” he said. Read more of this post

Indonesia’s Financial Services Authority OJK cautious on ‘banking conglomeration’

OJK cautious on ‘banking conglomeration’

The Jakarta Post, Jakarta | Business | Fri, June 20 2014, 8:49 AM

The Financial Services Authority (OJK) will closely supervise what it calls “banking conglomeration”, in which several lenders also operate other businesses either in banking or non-banking sectors.

OJK deputy commissioner Endang Kusulanjari cited Bank Mandiri as an example, saying that the state lender also ran an insurance business through Axa Mandiri and Mandiri Sekuritas, its securities company. According to her, several lenders not only run business in other sectors but some of them also own shares in other banks. Read more of this post

Regulatory Scrutiny Transforms Washington’s Political-Intelligence Business; Alex Vogel Says Greater Compliance Burden is Among Reasons Spurring Shift From a Business in Regulators’ Cross Hairs

Regulatory Scrutiny Transforms Washington’s Political-Intelligence Business

Alex Vogel Says Greater Compliance Burden is Among Reasons Spurring Shift From a Business in Regulators’ Cross Hairs

BRODY MULLINS

Updated June 19, 2014 8:53 p.m. ET

Alex Vogel spent the last decade building a Washington lobbying business with a successful practice feeding investors information about potentially market-moving changes in policy.

But with federal investigators scrutinizing Washington’s interactions with hedge funds and other traders, Mr. Vogel is quitting his firm. His new venture, VogelHood Research, will make all its predictions based on computer algorithms using publicly available information—without ever talking to members of Congress or other policy makers. Read more of this post

Corinthian Colleges Warns of Possible Shutdown; Restrictions on Federal Funding Leave For-Profit Educator in Cash Crisis

Corinthian Colleges Warns of Possible Shutdown

Restrictions on Federal Funding Leave For-Profit Educator in Cash Crisis

STEPHANIE GLEASON and JOSH MITCHELL

Updated June 19, 2014 8:01 p.m. ET

One of the country’s largest for-profit education companies warned Thursday that it may have to shut down after the Obama administration moved to restrict the company’s access to federal funding.

Corinthian Colleges Inc., COCO -67.06% which operates Everest College and other schools, has about 72,000 students who receive roughly $1.4 billion in federal financial aid each year. But the company and its for-profit rivals, which enroll about 13% of the nation’s higher-education students, are drawing greater scrutiny from regulators over concerns about their marketing, dropout rates and loan defaults among their students. Read more of this post

Probe May Hit China’s Imports of Copper, Iron Ore; Traders Report Disruptions to Trade

Probe May Hit China’s Imports of Copper, Iron Ore

Traders Report Disruptions to Trade

BIMAN MUKHERJI and CHUIN-WEI YAP

June 19, 2014 6:23 a.m. ET

BEIJING—China’s imports of copper and iron ore may drop due to an alleged financing scandal, as banks withhold credit and customs officials tighten checks on incoming shipments, metals traders say.

Western banks are looking into allegations that a Chinese trading company illegally pledged metals as collateral to more than one lender. The operator of Qingdao Port, the eastern Chinese port where the metals are stored, has confirmed that Chinese authorities are investigating allegations of fraud relating to stockpiles of metals. Read more of this post

China-Hollywood Venture Fizzles; Huayi Brothers Media’s Plan to Fund New Film Studio Hits the Pause Button

China-Hollywood Venture Fizzles

Huayi Brothers Media’s Plan to Fund New Film Studio Hits the Pause Button

BEN FRITZ

June 19, 2014 3:56 p.m. ET

Huayi Brothers Media Corp.’s 300027.SZ +1.29% plan to fund a new Hollywood studio is on hold.

The Chinese entertainment conglomerate announced in March that it intended to invest between $120 million and $150 million in Studio 8, a new company run by former Warner Bros. film chief Jeff Robinov. But those negotiations have fallen apart, people close to the venture said Thursday. Read more of this post

Indian Regulator Recommends State-Run Firms Raise Public Shareholding; SEBI Says the Government Should Cap its Stake in Listed Companies at 75%

Indian Regulator Recommends State-Run Firms Raise Public Shareholding

SEBI Says the Government Should Cap its Stake in Listed Companies at 75%

MUKESH JAGOTA And KENAN MACHADO

June 19, 2014 9:56 a.m. ET

NEW DELHI—India’s stock market regulator recommended Thursday that state-controlled companies be required to sell at least 25% stakes to the public.

The Securities and Exchange Board of India said it wants to close the loophole that allows state-run firms to remain listed even if only 10% of their shares are held by the public. Read more of this post

Want to Be a Millionaire? Move to Hong Kong; Hong Kong mints millionaires faster than any of the world’s other top 25 economic powerhouses, according to a new survey on the rich by Capgemini and RBC Wealth Management

Jun 19, 2014

Want to Be a Millionaire? Move to Hong Kong

Hong Kong mints millionaires faster than any of the world’s other top 25 economic powerhouses, according to a new survey on the rich by Capgemini and RBC Wealth Management.

Tis the season of wealth reports – the new 2014 World Wealth Report is the second global survey of the world’s rich in as many weeks (Boston Consulting Group released its wealth tome last week). And again, the latest survey confirmed an obvious outcome of Asia’s economic boom: The region is home to more millionaires than ever. Read more of this post

The tightrope China’s biggest business tycoon must walk; Can you be Maoist and ultra-capitalist at the same time? Yes, you can. The embodiment of this ultimate contradiction is Ren Zhengfei, the legendary founder of Huawei

The tightrope China’s biggest business tycoon must walk

Peter Cai

20 June 2014

Can you be Maoist and ultra-capitalist at the same time? Yes, you can. The embodiment of this ultimate contradiction is Ren Zhengfei, the legendary founder of the Chinese telecommunication giant, Huawei.

He is one of China’s most respected and powerful businessmen, an admirer of the Whiz Kids of Ford — who pioneered a data-driven decision-making process — and is a personal friend of American business tycoons such as Hank Greenberg of AIG and John Chambers of Cisco. Read more of this post

China denies trying to ban unapproved critical media coverage

China denies trying to ban unapproved critical media coverage

9:08am EDT

BEIJING (Reuters) – China is not trying to ban reporters from publishing critical reports without prior approval, an official told state media on Thursday, insisting an order had been misinterpreted and its real goal was to stop journalists abusing their jobs.

The State Administration of Press, Publication, Radio, Film and Television issued rules on Wednesday saying reporters could only publish critical stories if their employer had signed off on it, sparking accusations of censorship. Read more of this post

China Property Collapse Seen as $33 Billion in Trusts Due

China Property Collapse Seen as $33 Billion in Trusts Due

By Bloomberg News – Jun 19, 2014

Chinese property trusts face record repayments next year as the real-estate market cools, fueling speculation among bond funds that more developers will collapse.

The trusts, which channel money from wealthy individuals to smaller builders that have trouble obtaining financing elsewhere, must repay 203.5 billion yuan ($32.7 billion) in 2015, according to Use Trust, a Chinese research firm. That’s almost double the 109 billion yuan due this year. New issuance of the products slumped to 40.7 billion yuan this quarter, the least in more than two years, Use Trust data show. Read more of this post