Indonesian Non Performing Loan Report

Indonesia Non Performing Loan (NPL) estimation is being increased in 2009 this year. The statement was said by Mr. Muliaman D Hadad Deputy of Indonesia Central Bank (Bank Indonesia) in Jakarta Tuesday.

The deputy said that cash liquidity (financial liquidity risk) is ok as well as market risk but credit risk is estimated to higher (trend). It is a normal condition, while global financial crisis and global economic crisis attacked all countries. Low on Demand (purchasing power parity) then declined demand for goods. Both credit loans from household and industries go to trouble. Crisis took to long to recover so we have no reason to wait better condition in foreign demanders.

Indonesia Exporters are attacked so hard as global crisis, Low of Demand in America and Europe made exporters to cut their production and employers as over stocks. Domestic market is potential market but there the multiplier of global crisis has already been arriving in Indonesia so it is not a good market. Chairman of KADIN said that to prevent worst condition to exporters, Indonesian Exporters must replace foreign market to domestic. Indonesia has big population and they are potential demand.

Indonesia Central Bank (Bank Indonesia) estimated that the growth of credit risk rate is set around 5 percent, higher than Banking NPL Gross in 2008 reached 4 percent.

The Global Financial and Economic Crisis forced Investors didn’t do anything, just stay and wait for better condition, So Banks have much money, unused money in banks but there are some banks have problem with cash liquidity and Mr. Muliaman said Central Bank (Bank Indonesia) will choose best plan to repair segmentation between banks, more cash liquidity and lower cash liquidity. Monitoring is good solution Mr. Muliaman said

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Indonesian Cocoa Export Yearly Report

National cocoa exports in 2008 decreased approximately 20 percent of export realization in 2007 reached 532,000 tons. Halim Razak as Chairman of General Association of Indonesian Cocoa said that the decreasing of cocoa export is caused by global crisis and the lowering of total cocoa production on this year.

According to him, the slope of export is influenced by the amount of gradually production. As an illustration, in 2006 the total cocoa production was around 900,000 tons, and then decreased in 2007 to be 532,000 tons, and this year's predicted around 490,000 tons.
Meanwhile, domestic market is estimated reach of 230,000 tons per year. Thus, if the cocoa production has decreased, while domestic demand is relatively fixed, then the cocoa export allocations to be decreased.

The condition goes to worst if we see the price trend in recent six months. In September 2008, the price of cocoa is still 2,600 U.S. dollars per ton, now only around 2,100 tons of U.S. dollars, while local market price for cocoa in September 2008 is still 3.500/kg Indonesian currency, but now only about 18.000/kg Indonesian currency.

South Sulawesi and West Sulawesi is the center of national cocoa production, take around 70 percent of Indonesian cocoa production. Halim Razak also said that decreasing of total cocoa production is caused by the cocoa age is over 15 year-at the period the plant result lower production. He also told that to solve the condition, government must help the farmer to replace with newer and to kill the cocoa disease.

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