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