Japanese investor to build ship repair facility in Indonesia

Jakarta (ANTARA News) - A Japanese shipbuilding company, Tsuneishi Ship Building, plans to invest US$40 million in a ship repair project in Indonesia, chief of the Capital Investment Coordinating Board (BKPM) Franky Sibarani said.

Tsuneishi made the commitment at a meeting in Fukuyama with Franky Sibarani when the latter visited Japan last Monday.

"At the meeting , the management of Tsuneishi pledged to invest US$40 million in the first phase. The investment would likely be increased with expansion," he was quoted as saying in a statement. 

He said the Japanese company has long indicated interest in expanding operation to Indonesia.

He said he has invited the company leaders to visit Indonesia to determine the location for their project. 

BKPM representative office in Tokyo will facilitate the company in the process of licensing. 

"At least there are five potential locations to be recommended - Lampung, Lamongan, Surabaya, Makassar and Manado. Lampung and Lamongan have been developed as center for integrated shipbuilding industry. 

Chairman & President of Tsuneishi Holding Yasuharu Fushimi said his company plans the investment in two phases. 

The first phase the company would build ship repair facility and in the second phase the company would build shipbuilding facility, Yasuharu said. 

"We see a big potentials for ship building industry in Indonesia. There are around 3,293 ships that will make a potential market for ship repair service in Indonesia a year," he was quoted as saying. 

Tsuneishi Ship Building is the 7th largest ship building industry in Japan . It has shipyards in Cebu in the Philippines , in Zoushan, China, and in Paraguay.

Iman Gazzaarif Iskandar (1801400890)

Pertamina to set up special task force for Ramadhan

Jakarta (ANTARA News) - State oil and gas firm PT Pertamina will set up a special taskforce to ensure fuel oil and liquefied petroleum gas (LPG) supply during the fasting month of Ramadhan and Idul Fitri festivities.

"The fuel oil taskforce will cooperate with the Energy and Mineral Resources Ministry as a regulator, BPH Migas (the Downstream Oil and Gas Regulatory Agency) and Hiswana Migas (the Association of Fuel Station Owners)," Vice President for Corporate Communication of Pertamina Wianda A. Pusponegoro said here.

The taskforce will work 14 days before and seven days after the Idul Fitri festivities and will then go on standby to meet demand for fuel oils, she added.

Pusponegoro further noted that the taskforce will focus on highways in Java and Sumatra that holidaymakers will pass through.

"In Java, we identified several locations, including the Kanci toll road, which we believe will be crowded with holidaymakers," she pointed out.

Moreover, to distribute fuel oils to several gas stations, Pertamina will cooperate with the police to regulate traffic in case of congestion, he affirmed.

She also predicted that demand for non-subsidized gasoline such as Premium, Pertamax and Pertamax Plus will increase ahead of the festivities. 

"We know that ahead of the festivities, most industries do not operate, and consequently, diesel oil consumption declines. So we will focus on supplying Premium, Pertamax, Pertamax Plus, and LPG," she emphasized.

Iman Gazzaarif Iskandar (1801400890)

Bali`s exports to Spain increased 38.93%

Denpasar (ANTARA News) - The exports of unique Balinese crafts and antiques to Spain increased by 38.93 percent, from US$5.4 million recorded in January-April 2014 to US$7.4 million in the same period in 2015.

"Spain imports various woven products in the form of sandals, cloth bags, non-knitted items, confectionery, and furniture," Balinese entrepreneur Made Parwata stated here on Thursday. 

According to Parwata, Balis growth in foreign trade, particularly with Spain, seems positive, especially after the government increased the frequency of flights to European countries.

He remarked that Spanish consumers are consistent in buying various Balinese art products.

Spanish importers always order items via email every month.

In addition to Spain, the Netherlands, Greece, England, France, and the United States are the top ten buyers of Balinese handicrafts.

According to records provided by the Central Statistics Agency (BPS) of Bali, Spain ranks seventh in the list of largest buyers of Balinese non-oil products in early 2015, after the United States, which is the biggest consumer, with exports amounting to US$38.8 million followed by Japan at US$16.5 million, Singapore US$14 million, and Australia US$13.3 million.

The increasing number of foreign tourists travelling to Bali is expected to significantly affect foreign trading, especially the sale of souvenirs and agricultural products, including Balinese coffee.

Iman Gazzaarif Iskandar (1801400890)

President Jokowi hopes Indonesia to become shariah financial center

Jakarta (ANTARA News) - President Joko Widodo (Jokowi) has expressed hope that Indonesia will become a shariah financial center in view of the countrys huge potentials. 

"I hail the launch of the campaign. We indeed need to pay attention to the shariah financial service sector. It has grown fast but the growth is not yet maximal with regard to the existing potentials," he said at the launching of "I Love Shariah Finance" campaign initiated by the Financial Service Authority (OJK) here on Sunday.

The President said if the huge potential is developed it is not impossible the country will become the development center of shariah finance.

"Our country is a country with the worlds biggest micro-finance, the only country that issues a retail shariah bond and if it develops later it could make the country become an international shariah financial center. The key to achieving it is improving public knowledge sustainably," he said.

OJK chairman Muliaman D Hadad said that although the shariah finance has grown fast it is still relatively small compared to other national financial services.

He said 12 shariah general banks with 22 shariah units in the country are owned by conventional banks and 163 shariah BPRs (local banks) with total assets worth Rp264.81 trillion and a market share of 4.88 percent.

The number of players in the non-shariah financial industry totals 98 outside LKM (community financial institute) consisting of shariah insurance with a total asset of Rp23.80 trillion, shariah financing business with a total asset of Rp19.63 trillion and other shariah financial institutions with a total asset of Rp12.86 trillion.

In all the shariah non-bank financial industry market has reached 3.93 percent compared to the total assets of general non-bank financial industry.

The shariah capital market has been developed in the framework of accommodating the needs of the people in Indonesia to invest in capital market products in line with the shariah basic principles.

Until March 2015 total shariah shares traded at the shariah capital market reached Rp3,037.46 trillion with corporate bonds reached Rp7.1 trillion and shariah mutual funds Rp11.7 trillion.

Iman Gazzaarif Iskandar (1801400890)

Indonesia Labor Ministry appreciates Newmont`s agreement with workers

Mataram (ANTARA News) - The labor ministry said it appreciates a cooperation agreement (PKB) reached between PT Newmont Nusa Tenggara (NNT) with its unit of labor union.

The ministry noted there are changes in the new agreement which are considered mutually beneficial to both sides.

The changes are expected to benefit both the workers and the company better than expected from the previous agreement two years,director general for development of industrial relations R Irianto Simbolon said here.

Irianto said a cooperation agreement is an industrial relation , therefore, all companies are expected to have such agreement.

It is not a regulation of the company based only the policy of the company, he said.

"We encourage all companies to have PKB which sets working conditions and rights and obligations of the workers and the employers," he said.

He said the PKB signed by PT NNT and its workers is expected to improve the welfare of the workers and performance of the company in two years in line with the agreement.

"If in two years there is no change, the six month process of negotiations on the PKB failed and should be reevaluated," he said.

He said PKB negotiations should not take too long time as it would be inefficient.

"Negotiations should be wrapped up in a month , even in a week," he said.

NNT human resources manager Dadang Prihadi said the main point in the PKB is a hike in the salaries of the workers, but the increase would be by phases in two years of the PKB implementation.

In 2015, pay hike is three percent and four percewnt in the following year, Dadang said.

"The pay hike is effective as from January, 2015," he said.

NNT, an Indonesian unit of the U.S. mining giant Newmont Mining Corp., has a large copper and gold mine in Sumbawa, East Nusa Tenggara. 

Iman Gazzaarif Iskandar (1801400890)

Senin 15 Juni 2015

Indonesia's trade surplus increases in May

JAKARTA: Indonesia's trade surplus grew to $950 million in May, official data showed Monday, as imports slid sharply in Southeast Asia's largest economy.

It was the sixth straight month that Indonesia has recorded a trade surplus and the figure was about double that forecast by economists. It compared to a $450 million excess in April.

The widening surplus was driven by a sharp fall in imports to $11.61 billion, down 21.4 percent from a year earlier, a sign of slowing consumer demand as the G20 economy cools.

Exports fell less steeply, but were still down 15.2 percent year-on-year at $12.56 billion, according to the data from the official statistics agency.

Despite the downbeat figures, policymakers were expected to welcome the growing surplus as they battle to narrow a stubborn current-account deficit.

Indonesia's economy has been slowing in recent times as the price of its key commodity exports slips and demand falls in China, the world's number two economy.

Growth slipped to 4.7 percent year-on-year in the first quarter, its slowest pace in around six years, and well below the government's target of 5.7 percent for this year.

Iman Gazzaarif Iskandar (1801400890)

Global Economics Institutions

GEIs exist within a changing global environment and one measure of their success is their ability to adapt to change. In some respects the IMF (International Monetary Fund) has responded creatively to the challenges posed by a changing international financial order, but in other respects it has failed either to provide appropriate regulatory oversight or develop polices suitable for its membership. Initially the IMF was essentially a short term lending (12-24 month loans) institution providing loans through its stand-by arrangements. Although the IMF has clearly responded to changing global financial system. Like its twinned institution, the World Bank has show a degree of flexibility and adaptability to a changing international economic order. The world Bank has also adapted its approach to development over time. Since its early years the bank has had four identifiable shifts in its approach to the financing of economic development. Nevertheless, the World Bank remains a deeply controversial institutions. Supporters of the Bank contend that its provides developing countries with much-needed capital, and maintain that the projects it supports are vital in the fights against world poverty.  And  the World Trade Organization’s (WTO) contribution to global governance has varied depending on the view taken of organization’s ability to affects countries’ trade policies and analysis of the beneficial effects of trade liberalization. The WTO provides a framework for the organization of international trade. First, as an international organization the WTO is primarily a legal agreement which provides a framework of rules, norms, and principles to govern the multilateral trading system. Second, it is a forum for multilateral trade  negotiations. Third, the WTO through its Dispute Settlement Understanding (DSU) facilitates dispute resolution. The WTO committed to the promotion of a liberal trading order. Its policies are predicated on an assumption that trade is better than no trade, and that barriers to trade are harmful to national and international welfare.

            The activities of the International Monetary Fund, World Bank, and World Trade Organization have far –reaching consequences for the livelihood of people around the globe. The IMF’s mocaroeconomic policy coordination, crisis management skills and role in economic  development have all sparked debate and controversy. The World Bank, as the world’s leading multilateraldevelopment agency, has a crucial role to play in poverty allevation. The creation of WTO signaled a stronger institutional base for the multilateral trading system, but the tension between futher trade liberalization and sectional interest has stymied its ability to fulfil this role.

            In respect of all three institutions persistent criticisms remains of their ability to contribute to stability, efficiency and justice in the global economy.  In a very stark manner the Global Financial Crisis raised pertienent issues about the governance role of these institutions and brought to the forefront the dilemmans of reforming their internal governance structures to address the perceived crisis of legitimacy they face.

 I Made Danan Jaya (1801406622)

Facing Unemployment in Indonesia

According to Trade Economics's website, unemployment Rate in Indonesia increased to 5.94 percent in the third quarter of 2014 from 5.70 percent in the first quarter of 2014. Unemployment Rate in Indonesia averaged 6.15 percent from 1982 until 2014, reaching an all time high of 11.24 percent in the third quarter of 2005 and a record low of 2 percent in the fourth quarter of 1983. Unemployment Rate in Indonesia is reported by the Statistics Indonesia. (http://www.tradingeconomics.com/indonesia/unemployment-rate)

Unemployment have been a seriuos problem for Indonesia. It's about competing to other people with excelent skill, people with intelligent brain, good attitude, and of course self-confident. Sometimes it makes people with lack experience less able to make their economic growth in future, as people lose skills and become unemployment.

But throughout the course of Suharto's New Order, economic development added many new jobs to Indonesia's job trade, therefrom, pushing down the unemployment rate. Mainly, the industry and services sectors saw major increases in its employment shares towards national employment, at the charge of the agriculture sector as we know.

Improving job quality is a major challenge facing Indonesia as in many other emerging countries and advanced economies. If people try their best not to face unemployment, they will find their own way to generate their economic. For example, know what is your passion and it will makes you easier to find a job, increase your self quality in work, learn from a mistake, and do what you think is best for your life so you won't be unemployment.

Mega Indah Putri Utami
1801404251

Tax for Development

Indonesia do export and import because as we know that Indonesia have ten major export commodities of Indonesia, there are textile and electronics,  oil and oil products, textile products (TPT), forest products, automotive, rubber and rubber products,  footwear, cocoa and coffee, also shrimp. Export and import commodity will give some benefit for the country. There must be a tax  to do that transaction export and import. Well, Tax is more than just a source of revenue and growth. It also plays a key role in building up institutions, markets and democracy through making the state accountable to its taxpayers.

In export and import taxes in a country that is the most important thing is to increase foreign exchange.  In developing economies a lack of tax structures is a major cause of weak, unresponsive governance. Just as excessive tax burdens might hinder growth in wealthier countries and it also leads to an over reliance on help. But tax does matter because taxes are like income for the government so that they can pay for socialized services within your country for service such as health care, welfare, pension funds, homeland security, war, etc.

It's true that developing countries need help and will continue to do so, but they can also use it to help strengthen their tax capacity, increase their autonomy and reduce their long-term dependence on their external assistance.  Rich and poor country governments have agreed on the importance of tax for development for years because they wanted to advance their country.

 In my opinion, it is important for every citizen of the state to pay their own tax regularly. Citizen should not have a bone to pick the burden of the tax, instead they should think about the utilities that they receive from the tax. It can be simply said that you are paying rent to live in a wonderful country.

Mega Indah Putri Utami
1801404251

Why countries join currency war?

Why countries join currency war?

Currency war is when a nation's central bank uses expansionary monetary policy to decrease the value of its currencies. Low currency makes their goods become chaper than others.  It is a condition where countries compete against one another to achieve a low exchange rate for their own currency.

When the currency decreased, so too does the price of exports. And the imports to the country become more expensive. Devaluation of currency can harm the citizen's living standard as their purchasing power is also reduced and it can discourage foreign investor.  However, when country is suffering from high unemployment this devaluation can be seen as advantegeous. When the imports are getting expensive, it make exports become cheaper. It tends to encourage more domestic production and raise employment. 

Currency war is a way to export deflation. As one country starting to decrease its exchange rate, another country's exchange become stronger. The imports become cheaper for the strengthening currency and export become expensive. Since this force them to reduce their prices in order to maintain their market share, when one country reduce its currency, its majir trading partners also follow to reduce their own currencies.

There are 2 ways that countries enter currency wars (marketrealist.com). The first one is by lowering interest rate. A central bank lowering its interest rate to stimulate domestic demand and consumption. Money is available cheap and this boost inflation. A higher inflation reduces a currency's real value and would lead to depreciation. And second is by quantitative easing measures. QE such as asset purchase or bond-buying programs are used by central bank to increase the supply of money in the market. With this, the central banks aim to promote increased lending and liquidity.

Author : Carnesia Deswara Chandra - 1801400480

Currency War: Japan

Monetary authorities are preparing to let Asian's currencies falling as Japanese yen makes the economies in Asia became uncompetitive.  The post world war ii Japanese economy was built up from exports, which means japanese will always has a weak currency. However, a weak currency is the main requirement for strong exports. There are some parallel with the 1997 when the japanese yen became extremely weak. There were also highly uncompetitive exchange rates and current account deficits culminated in the Asian currency crisis. 

According to the Bank of International Settlements, the japanese yen is down about 20% against the U.S dollar just since the last summer. With this, would the japanese yen collapse? But actually this is not an accident. Japanese prime minister is trying to kickstart the country's economy by printing as many yen as he can. Chinese and South Korea exports to America and have risen about 20% in the past two years, while Japan's are down by 2%. The weak yen allows Japanese firms to cut theprice of exports in foreign currency terms without reducing their earnings in yen. They keep international prices stable and pocketing extra yen.

A weaker yen believed to give a positive impact on Japanese jobs and industry, it makes foreign imports more expensive in Japan and making Japanese exports cheaper abroad.  But any significant devaluation by China will put more pressure on the yen. Japan might have a bond-market crisis that would have to be met with even more policy easing. It is obvious that devaluations must be orderly to minimize the risk. It is more likely that Japanese Prime Minister Shinzo Abe's government is just looking for a way to raise sustained growth in a depopulating and dept-heavy nation. Yen would continue rising, it can be seen from the government's program and  foreign exchange traders have more influence on the value of yen, dollar or euro. But if foreign traders can make profit from a rising yen, they will keep bidding it.

Author : Carnesia Deswara Chandra 1801400480

Japan and China Economy in Senkaku/Diayou Island Dispute

Economy is in a state can not be separated. Because the economy itself can also be a benchmark for a country, where countries are classified as developed countries or developing countries. Economics itself is also associated with the sectors - sectors such as investment, trade (export and import), economic cooperation, the income countries (foreign exchange), natural resources and human resources, and economic growth. Economics is also a key pillar of a state in running the country and the economy could also be a way to explore cooperation between countries. In addition to the economy it can also be used as the initial or base of an inter-state problem (conflict or dispute).

The condition of the Japanese economy and China can be said to be very good. Both countries are the largest economic power in Asia, while Asia is the region with the most dynamic economy in the world and be an engine for the global economy. Any confrontation between the two countries will surely raise international concern about the stability and peace in Asia.

In the case of a dispute Senkaku Islands / Diaoyu between Japan and China, the Chinese continued to press claims sovereignty of the island and surrounding waters because these disputed areas suspected of having huge resources of oil and natural gas, similar to the disputed Spratly Islands in the South China Sea. Estimated 2005, the oil resources in the East China Sea is 100-200 billion barrels, enough to provide a good source of energy for the country 50-80 years. Access to oil resources is a priority for China as the second largest consumer of oil after the United States. This strain also harm the economies of both countries, which is mutually tegantung. According to the input-output toWorld Database, the contribution of Chinese demand for Japan's GDP in 2009 was 2.7%. Similarly, Japanese demand accounted for 2.1% of China's GDP. Interdependence is caused by cross-border production network between the two countries. However, intensify their antipathy among nations have weakened the economic relations between the two countries. Direct investment from Japan to China in the first half of 2014 decreased by 49% compared to the previous year's figure.

Through this dispute conflict can be seen that thing - things that support the economy of one of the triggers of conflict, such as the location of the island is very strategic and the amount of content of the natural resources contained within the island. By doing so the wheels of the economy of both countries to be disrupted.

I Made Danan Jaya (1801406622)

The Weakening of Rupiah

These days, the Indonesian rupiah (IDR) trades at roughly 13,000 to one U.S. dollar (USD), its weakest level since 1998. The ongoing currency depreciation may pose the greatest threat to Indonesia’s economy in more than a decade unless the government acts decisively to rectify the situation.

Rupiah changing unstable will extremely affect the macroeconomic in Indonesia. In outline, there are several variables that affect macroeconomic Indonesia, namely, the first is associated with the exchange rate of value balance of demand and supply on the domestic currency and  also foreign currency. The second is the interest rate, which will take place in the value of bank interest rates and will have an impact on changes in investment in Indonesia. The third  is the occurrence of inflation, rising prices in general and continuous, as a result of increased public consumption, and surplus liquidity in the market that trigger continuous consumption. The weakening of the exchange rate is also fueled by rising fuel imports made by Pertamina. Great fuel imports made the trade balance deficit and pressing needs of foreign currency in the country.

Currently, the ailing Indonesian rupiah is unlikely to find much assistance from the global economy, as the US recovery reduces the investment appeal of emerging markets, and ongoing weaknesses in Japan, China, and Europe damage the market for exports. Consequently, to stabilize the situation in response to both foreign and domestic factors, the economic community must look to Indonesia's President, Joko Widodo and Bank Indonesia (BI), the country’s central bank. 

Jokowi’s efforts to limit the central government’s budget have been commendable, especially in fuel price policy reform. Now, as we know Indonesia faces its worst currency crisis in 17 in recent years, the president must exercise strong monetary policy acuity, working in tandem with Bank Indonesia to stop the fall of the rupiah. 

Mega Indah Putri Utami
18101404251

Trade between Indonesia and EU

Delvia Erfani Olii

1801405424

this time is about Indonesia and EU,

The EU and Indonesia signed a Partnership Cooperation Agreement in 2009.

Intense contacts have taken place since 2011 to explore the possibility to further deepen EU-Indonesia relations and negotiate a Comprehensive economic partnership agreement. Indonesia is the largest economy in the Association of South-Asian Nations (ASEAN) representing 40% of its GDP and population (244 million inhabitants). However, it ranks only at the fourth position inside the region as EU's trading partner (and 29th overall), with a bilateral merchandise trade just reaching €23.5 billion in 2011. Total trade in commercial services between EU and Indonesia in 2011 amounted to €3.7 billion and represented more than 14% of the total trade.  

The co-operation between the EU and Indonesia is ensured mainly through the EU-ASEAN Dialogue which includes discussions on trade and investment issues at ministerial and senior economic official levels. Indonesia is one founding member of the 10 members of the Association of Southeast Asian Nations (ASEAN). The ASEAN countries as a group are the EU's fifth largest trading partner outside Europe, after the United States, China, Russia and Switzerland. Bilateral trade in goods between the EU and ASEAN reached some €164 billion in 2011. Negotiating better access for EU exporters to the dynamic ASEAN market was identified as a priority under the 2006 Global Europe trade strategy.

After Free Trade Area negotiations between the EU and a group of ASEAN countries proved difficult, in December 2009, the EU decided to pursue negotiations towards free trade agreements with individual ASEAN countries, beginning with Singapore and followed by Malaysia and Vietnam. That said, the EU is not losing sight of the ultimate goal of achieving an agreement within a regional framework. Indonesia currently enjoys trade preferences with the EU under the Generalised Scheme of Preferences. That said, the EU is not losing sight of the ultimate goal of achieving an agreement within a regional framework: bilateral negotiations with ASEAN members would constitute building blocks towards a future region-to-region agreement.

Indonesia and The WTO Dispute Settlement System

Delvia Erfani Olii

1801405424

Indonesia's participation in the WTO. Indonesia has been a WTO member since 1 January 1995 and  a member of GATT since 24 February 1950. also Indonesia is a member of these group in theses negotiation such as Asian developing members, APEC, ASEAN and etc.

in general, opportunities and obstacles faced by the developing countries must also be experienced by Indonesia in its activities when getting involved in the settlement process of international trade dispute in the World Trade Organization (WTO). Indonesia's participation in the WTO. Indonesia has been a WTO member since 1 January 1995 and  a member of GATT since 24 February 1950. also Indonesia is a member of these group in theses negotiation such as Asian developing members, APEC, ASEAN and etc. The consequence of the position of Indonesia as a developing country is that its position becomes weak when dealing with the developed countries. This happens due to the difference of economic power among the states that become the members of the World Trade Organization (WTO). This happens due to the difference of economic power among the states that become the members of the World Trade Organization (WTO).

According to Christina L. Davis, there are four reasons why the legal-based dispute settlement system can help the developing countries when litigant with particularly the developed country,1 among other things, first, the availability of the option to file a lawsuit gives strength to the developing countries to force the developed countries to come to the negotiating table to discuss their interests. Second, the dispute settlement system such as Disputes Settlement Understanding (DSU) has made the international trade law as a benchmark to reach an agreement. Third, using a mutually agreed rules will facilitate developing countries to get allies who have similar interests to support their case. Fourth, long-term economic interests can be used to support the regulationsto encourage the compliance with the regulations. the Disputes Settlement Understanding (DSU) is one of the best achievements oneof the World Trade Organization (WTO), there are still several drawbacks in the WTO dispute settlement system that could potentially cause problems for the developing countries to obtain maximum results.

The World Trade Organization (WTO) dispute settlement system (managed under the Dispute Settlement Understanding, DSU) is undoubtedly one of the principal achievements of the WTO, representing the most widely used intergovernmental dispute resolution system in the world. In its first seventeen years, the WTO DSU has seen 452 requests for consultations made, resulting in 167 panel reports and 103 Appellate Body reports.

The purpose of this Information Note is to examine in particular the participation of Asian countries2 in the DSU. Predominantly comprised of low income and low middle income countries,3 statistics on the region’s engagement in the DSU will be illustrated and analyzed to look at behavioural patterns in its participation and to determine whether the constraints on capacity often associated with developing states also apply to certain Asian countries.

Globalization and Economy

Globalization is a messy term that encompasses a wide variety of human activity. As you may be aware there are trade statistics and other economic facts that suggest the world is becoming increasingly globally integrated (Held et al.1999: 169-75).  For the hyperglobalist, globalization is the consequence of information and communications technology as well as capitalism and the main elements is global economy. Globalization has made it easier to develop non-government organizations (NGOs) that promote and disseminate a certain set of political values.  The globalization and economy very related with liberalism, especially neoliberalism.

Because in neoliberalism based on the principle that human welfare is best promoted by economic growth and reducing the interference of government in private sector. And neoliberalism support measure that enable trade and finance to have unrestricted movement across national boarders. These policies attempt to ‘roll back’ the state and the role of government, and leave decisions about allocation, production, and distribution in the econmy to the global market.

            In this globalization era, many global economic institutions has rises like international monetary fund (IMF), world bank, and world trade organization (WTO). And they have a important act in world’s economy. And in globalization era the economy more increasingly, important, and complicated so the economy in this era has a lot of problems but it has a many benefits. Many new economy actor rises in many countries in this era and they have a influence in their countries, so that they can help their country in problems especially in economy like reduce the unemployment, increasing the economy, make the economy activity more variation,etc. And country began to build a connectifity in economy with other country or in regional. They start to make a policy that they can do trade and business easier like free trade or make a free trade area in the regional.

I Made Danan Jaya

1801406622

Currency War: China

Author : Carnesia Deswara Chandra (1801400480)

The currency war is still continues, with Euro as the loser to USD. While China facing various difficulties in reaching their expected economic growth by 7% which would be the lowest economic expansion in approximately 25 years for the Asian country. The situation might get worse before it gets better as for instance investment, consumption and production growth levels have fallen and became an extremely bad sign. This slow growth rate of China will lead to an impact that will be felt all over the world.

Strengthened by the lower expected inflation rate, many of China's banks eased its monetary policy. China more likely to weaken the yuan. a weaker yuan would help prop up export earnings, boosting growth and create jobs in an economy that grew at its slowest pace in 2014. China's central bank allowed yuan to gradually decline and it has fallen 2.3% against dollar since the last November. In this situation, the world's focus would be the decision made the USA, if everyone is going to reduce their currency values, it would be an economical suicide for USA if they decided to increase their interest rate and make the USD more appealing to foreign investors.

Premier Li Keqiang said in a report to lawmakers that the exchange rate would be kept at reasonable and balanced level. While avoiding currency weakness, policy maker relied on interest-rate cuts and reduced reserve requirement at banks to support economic growth. While the others are trying to reduce their currency values, China quietly trying to steal more and more of the global market. In order to win the battle, China did various efforts to win its favor and become the leading offshore for reminbi transaction is well chronicled, and now China is promoting Yuan as world beating. Yuan accounts for 2.6% of global transaction and that's up from 1.39% a year ago. If US lose the currency war, China will likely to be the long term winner.

Small Medium Enterprises in Indonesia

          Indonesia has a large population, with the large population Indonesia become a country who has a higher economy. And the economy activity in Indonesia has a big influence, If the economy going down any sector will get that influence. Know that Indonesia has a large population and the economy activity has a big influence, its make the Indonesia peoples began to establish some simplicity enterprises who called small medium enterprises. Does not rule out the possibility that these enterprise will be a big enterprise later. And of course it will make many jobs and can accommodate many jobseeker in Indonesia and Indonesia unemployment rate will be suppressed. But these small medium enterprise still focus in food and baverages sector and in fashion sector.

            See this progress, the Indonesia government looks like a quiet and lacking of attention. Many these small medium enterprises has a difficulties in terms of capital, permits to do business, registration to do business and their lack of participation of the government in the protection of the rights of their business as well as protection from the piracy of their product. So many of these small medium enterprises are bankrupt, does not have a clear direction of business, not able to pay their employees and difficult to competing with foreign businesses and product.

            The existence of these problems, it is time for the Indonesia government to care about this small medium enterprises. Maybe the government could start by providing training to small medium enterprises  and provide convenience permission in business and provide interest-free capital loans for small medium enterprises. And provides protection their products from piracy and helps in competing with foreign firms and product. So that, the small medium enterprises will become kore developed and feel protected in business. And it will increasing the Indonesia economy, make many jobs, can accommodate many jobseeker in Indonesia and Indonesia unemployment rate will be suppressed.   

I Made Danan Jaya (1801406622)                                                               

           

           

Japan's Globalization

Globalization has been an on-going process in the modern world. In Japan's economy has rebounded and is growing again. Japan ranks as the world's 3rd largest economy and is a leader in the fields of IT-related industries, automobiles, and also animation like cosplay and other stuff in comics. It also has showed the world in high tech exports, microelectronic products or gadgets. Japanese companies have invested all over the world. Toyota for example, has invested in an automobile plant in France with all of its labour laws.

Some argue that Japan's market has unique vulnerabilities, and as analysts see it, the plunge reflects to a large extent foreign investors desertion of a Japan that now appears to have poor prospects fot growth and prosperity in the future. But on the other hand Japan's modernization process now can be viewed as a globalization process as well. Japan's adoption of European imperialism resulted in total devastation of both the country and many traditional values. 

Japan has characteristics of the economic development especially in the period after the 1990s. The first characteristic is the changes in exchange rates and their economic impact. After Japan making the transition to a floating exchange rate system. Japan was faced with a precipitous appreciation of the yen although its simple, in the early 1990s.  Because of the exchange rate changes had a substantial impact on the Japanese economy. Secondly, with the advancement of Japan's industrial and trade structure, the focus on the US as a trading partner and direct investment destination gradually shifted to the East Asian region. Thirdly, regarding Japan's financial and capital transactions, equity investments from abroad have recently increased, but it can't be said that Japan's international financial and capital transactions have accelerated, except in the bubble economy period. Fourthly, Japanese's economy's international ties are not as deep as those of European and North American countries. This means that even though globalization in Japan is presumably advancing, it may not be the case when compared to the Europeqan and North American countries. 

Globalization is not a choice but a necessity for survival. In order to move forward with globalization Japanese companies must open up their closed labor market, an undertaking equivalent to a "cultural revolution" to overturn Japan Inc.'s human resource management style. 

Mega Indah Putri U.

1801404251

Investment and business culture in spain

I Made Danan Jaya (1801406622)

Spain, which covers 195.000 square miles, is located on the Iberian Peninsula at the southwest corner of Europe. Its southernmost tip is directly across from Marocco. The country has a population of approximately 40.5 million and a gross domestic product of about $1.1 trillion ($27.400 per capita). Spain has an international business platform and the economy ranked 9^th largest in the world and top five countries with huge economies in the European Union. Spain economic freedom score is 67.6, making its economy the 49^th freest in 2015 index. Spain has a strategic location, they belongs to European Union and on the gateway to North Africa and Latin America. And the export and import activity have grown quickly.

            Spain has an majority investment. The first one in aerospace sector, spain aerospace industry is the 5^th in Europe in terms of turnover and unemployeement and 80% of the 60 million tourist that visited spain in 2013 did so by plane. This is very interested the investor to invest their capital in aerospace sector. The second is automotive sector, spain is the second car manufacturer in Europe and eleventh worldwide. The third is biotechnological, pharmacy, and life sciences. Spain is tenth world scientific power and fifth by scientific production in EU 15 and biotech companies are growing faster in spain than other countries. The fourth is ICT (informational and Communication Technology) sector, sapin have modern and telecommunication infrastructures, couples with an extensive network of scientific and technology parks and higher education canter and spain has storng government support in this sector, through specific sector plans to all activities aimed at fastering the development of the information society. And the last, fifth is tourism sector, spain has a rich history and cultural heritage and spain is the number two tourist destination in revenue and number three in number of visitors.

As we know that, the Spanish culture in one that places a great deal of emphasis on pride. When people work together, they try to avoid situations that will taint the relationship through criticism or cause either party embarrassment. Spanish business culture will affect the decision-making in negotiations with investor by controlling a business that can generate prosperity and benefit. Than, the Spanish are not known to be risk takers, and approach ventures with caution because they don’t want either party loss. So the time to take a decision will be long. Because to achieve mutual benefits needed both for collective bargaining. Thus, the resulting decision will be much better. 

The Impact of Foreign Direct Investment in Indonesia

The main points that must be done in the implementation of Indonesia's foreign policy is the effort to achieve the urgent national interest, namely tackling the economic situation. To implement the necessary capital not less, although in this case the aid or investment capital from foreign party is just a complementary. 

The relationship in the economic field between the Republic of Indonesia to the other social state at this time has been going well in an atmosphere of mutual friendship and without interfering in the internal affairs of each party and also as long as no harm and will not affect the freedom of Indonesia.
In Foreign Direct Investment there must be procedurs and instructions for foreign direct investment policy implementation to advanced Indonesia. And by that Indonesia wants priority in the framework of the government's economic policy to achieve economic stabilization and rehabilitation.

There are also the positive and negative impact of FDI in Indonesia. First I'll explain the positive impact, namely: 
1. The increase in production and national income target countries.
2. Foreign-direct investment will not burden the balance of payment because there's no obligation to pay the debt and interest. Because the transfer of profits based on the success of foreign companies to invest.
3. Encouraging the develompment regional and sectoral

And the negative impact, namely:
1. May occur against the home government intervention by MNC. So it is possible the policy tend to protect the MNC's made from a variety of threats, including investment and domestic industries.
2. The emergence of the dominance of the industry, which is potentially turn off the domestic industry loses in terms of capital

And nowadays, Foreign Direct Investment in Indonesia increased to 82100 Billion IDR in the first quarter of 2015 from 78700 Billion IDR in the fourth quarter of 2014.

Mega Indah Putri Utami
1801404251