Jakarta faces $3 billion traffic nightmare

Jakarta's traffic chaos costs Indonesia billions of dollars a year in a depressing reminder of the gap between the country's ambitions for growth and its daily realities, analysts said.

The Indonesian capital ranked last of all in a global survey of commuter satisfaction in 23 cities published last month by business research firm Frost & Sullivan.

The Journey of Experience Index poll of almost 15,000 people around the world found that travellers in Jakarta were the most miserable of all, gloomier even than those in Rio de Janeiro and Cairo — notorious for its dire gridlock.

Respondents in Copenhagen, Seattle and Sydney were most satisfied with their commuting experience, based on criteria such as speed, cost and overall comfort.

But Jakarta scored less than half the marks of New Delhi.

One traveller who recently learnt the hard way how frustrating and costly Jakarta's traffic can be was Australian songstress Kylie Minogue, who had to delay a concert by 30 minutes because her crew were late.

Minogue herself avoided the traffic by flying to her June 27 gig in a helicopter, an expense that would be unnecessary in a city with a coherent transport system.

'The economic loss from traffic congestion problems in Jakarta is 28.1 trillion rupiah ($3.25 billion) per year, based on a study I made in 2007,' University of Indonesia environmental engineering expert Firdaus Ali told the AFP.

So what went wrong? Officials say they have been unable to keep up with the city's huge growth over the past three decades and the daily influx of millions of workers from the surrounding urban sprawl.

The challenges are indeed immense.

National annual growth of private vehicle ownership has averaged 11 to 13 per cent for the past decade, well above similar rates in developed countries, according to data from the University of Gadjah Mada.

But Institute of Transportation Studies chairman Darmaningtyas said successive Jakarta administrations needed to shoulder the blame for ignoring warning signs and failing to build public transport infrastructure.

'What they did was just facilitate the private vehicle industry. The Jakarta administration has to build a good mass transportation system, bike paths and pedestrian walkways,' he said.

Parts of the city are still studded with grimy concrete pillars — the remnants of a plan to build an inner-city monorail that stalled due to mismanagement and funding problems.

Haphazard commercial property development makes matters worse, leaving office blocks and shopping malls in places they never should have been, analysts said.

'The Jakarta administration still issues permits for commercial buildings such as malls in areas where they are no longer suitable, creating more congestion,' Indonesia Transportation Society expert Muslich Asikin said.

'The average speed of vehicles in the city is now about 20 kilometres (12.5 miles) per hour. From the business perspective, that's not acceptable.'

Indonesia has one of the fastest-growing economies in the world, with output expansion expected to top six per cent this year and next.

Yet its ports, roads and airports are hopelessly inadequate for the pace of growth it hopes to sustain, according to investors and analysts.

The government has announced plans to spend $140 billion on infrastructure until 2014, more than half of which will have to come from the private sector.

That is the year some experts predict Jakarta will reach 'total gridlock', the point at which every main road and back street is almost permanently clogged with barely moving, pollution-spewing cars.

Source : New Age

New IMF chief faces challenges first day on the job

The International Monetary Fund's new managing director, Christine Lagarde, will make her debut under intense pressure this week, as Greece's financial woes pose an urgent challenge.

The French executive is expected to land in Washington on Monday, the Independence Day holiday for the United States. She will officially begin work on Tuesday morning and hold a press conference Wednesday.

A 'busy work agenda awaits,' declared the IMF in its internal online magazine, while it stressed one of Lagarde's most pressing items includes the 'difficult policy choices needed to help global recovery (and) address the euro area crisis.'

'The global economy is being buffeted by continued uncertainty in Europe, uprisings in the Middle East, signs of overheating in some fast-growing emerging market economies, and rising commodity prices that pose a particular challenge for low-income countries,' the publication added.

But the Greek economic crisis eclipses all other priorities.

In the immediate term, Greece is expected to receive 12 billion euros ($17.4 billion) from the eurozone and IMF by July 15 after the ministers approved the fifth tranche of aid from last year's 110-billion-euro ($160 billion) financial rescue package.

This round the IMF's share includes 3.3 billion euros ($4.7 billion), according to the schedule of payments laid out in May 2010.

As part of a longer term strategy, the IMF must find a way to finance a country that in all likelihood will not be able to return to the markets for long-term borrowing in early 2012, as expected.

In the Greek crisis, Lagarde transitions to the IMF zone from her eurozone duties as France's former finance minister.

Before securing the job, she promised she would hold the eurozone countries to the same standards as other member states.

'The IMF does not belong to anybody. It belongs to the 187 members of the Fund, and the management of the Fund does not belong to any particular nation or region. We can't effectively represent the world's economic balance of power if certain economies are under-represented,' she said.

Lagarde has said that Greeks must make difficult but necessary adjustments to restore viability in their public finance sector and competitiveness to their country.

'This is about a country's fate, its security. And I believe at that point, we have to ignore the small and big political differences for the service of the country,' she said.

In addition she said she wants to ensure some continuity from her predecessor, Dominique Strauss-Kahn.

But the two do not hail from the same schools of thought. Strauss-Kahn is a Social Democrat while Lagarde is a 'moderate liberal.'

The 2008 Nobel Prize-winning economist Paul Krugman said the 'serious, responsible, and judicious' Lagarde was still a mystery.

Source : New Age

Samsung drops lawsuit against Apple

Samsung Electronics Co has dropped a lawsuit against Apple Inc that claimed Apple copied many of Samsung's innovations, according to a report from Bloomberg on Saturday.

Samsung dropped the suit on Thursday, Bloomberg said. The news service quoted Nam Ki Yung, a spokesman for the Suwon, South Korea-based company as saying the company wanted to 'streamline' the legal proceedings.

Spokespersons from Samsung and Apple did not immediately reply to requests for comment.

Apple and Samsung are part of a wider web of litigation among phone makers and software firms over who owns the patents used in smartphones and tablets, as rivals aggressively rush into a market in which Apple jumpstarted with iPhone and iPad.

Samsung had launched the suit in April as a counter-claim against Apple, which has sued Samsung previously, saying Samsung's Galaxy line of mobile phones and tablets 'slavishly' copies the iPhone and iPad.

Source : New Age

Europe clears urgent aid to save Greece from default

Eurozone finance ministers cleared the way Saturday for Greece to receive urgent funds to avoid imminent bankruptcy, but warned it would take weeks to conclude a new bailout for the debt-hit nation.

Greece is expected to receive 12 billion euros from the eurozone and IMF by July 15 after the ministers approved the fifth tranche of aid from last year's 110-billion-euro ($160 billion) financial rescue package.

The IMF is due to clear its slice of the next instalment, 3.3 billion euros, next week. The eurozone's share amounts to 8.7 billion euros.

Following a more than two-hour conference call, the ministers said in a statement they would also determine the details of a second bailout for Greece, including the scale of private sector participation, in the 'coming weeks.'

German finance minister Wolfgang Schaeuble indicated that Greece may have to wait until autumn for a new rescue package as Berlin wants Athens to follow through with its commitments, including privatisations 'that should begin immediately.'

The IMF welcomed Europe's move Saturday.

'We welcome the eurogroup's commitment to a financing strategy that ensures the Greek economic program is fully covered,' chief International Monetary Fund spokeswoman Caroline Atkinson said in a statement.

'This commitment — together with the recent parliamentary passage of the necessary fiscal measures in Greece — will enable the IMF's executive board to consider the completion of the fourth review and the release of the next tranche under the current stand-by arrangement with Greece.'

Source : New Age

Japan officials draw up Tepco break-up plan

A group of Japanese government heavyweights have written a secret proposal to break up Tokyo Electric Power Co and nationalise its nuclear operations, a newspaper said on Sunday.

The plan, drawn up by deputy chief cabinet secretary Yoshito Sengoku, would force Tokyo Electric sell its power distribution business and bring its nuclear power operations under state control, leaving the company with power generation operations using thermal and hydraulic power plants.

It would leave Tokyo Electric, better known as Tepco, with only 1.6 trillion yen ($19.85 billion) in power business assets compared with 7 trillion yen at present, the Mainichi daily said, citing informed sources.

The proposal has been kept under wraps as the government focuses on a taxpayer bailout for the utility to soothe market worries.

Sengoku, who has held meetings with Tepco chairman Tsunehisa Katsumata several times, has notified Katsumata about the internal document, the report said.

In June, the government approved a draft law to help Tepco pay billions of dollars in compensation to refugees from around its crippled Fukushima Daiichi nuclear plant.

The nuclear crisis began with the March 11 earthquake and tsunami, which knocked out reactor cooling systems at the plant, triggering meltdowns and radiation leaks that have yet to be brought under control.

For years Tepco has resisted any attempt to end its monopoly on power in Tokyo and the surrounding region. The disaster has given its opponents a chance to break up Asia's biggest power company.

Source : New Age

London investors to focus on BoE interest rate call this week

British investors will focus this week on an interest rate decision from the Bank of England amid a smattering of economic data and a dearth of company earnings news.

London's FTSE 100 index advanced 5.13 per cent over the past week to finish at 5,989.76 points on Friday — a massive jump on the back of easing fears over the Greek and eurozone debt crises.

The British central bank will announce its latest decision on Thursday after a two-day gathering of the nine-member monetary policy committee, with most economists expecting no change.

Policymakers kept the BoE's key interest rate in June at a record low 0.50 per cent, where it has stood since March 2009, as worries over weak economic growth offset high inflation.

Britain's manufacturing sector barely expanded in June, when the purchasing managers' index dropped to 51.3 compared with 52.0 in May, according to data from research group Markit on Friday. Any score above 50 indicates growth.

'The UK manufacturing PMI fell to 51.3 in June. The outcome marked the lowest reading since September 2009 and the index is now more than 10 points below its peak of 61.6 in January,' ABN Amro economist Joost Beaumont said.

Source : New Age

China IPOs slow in H1

China's IPO market slowed by a fifth in the first half of 2011 amid a lack of mega deals that hit the market the year before, with fundraisings dominated by small businesses, a trend that analysts said could last for a few more months.

In the first six months, only about one tenth of companies seeking a listing had chosen to do so on the Shanghai Stock Exchange while the rest had gone to the smaller Shenzhen bourse, which houses the Nasdaq-style ChiNext market.

Shanghai's sluggish IPO market had pushed down total IPO proceeds raised in mainland China by 20 per cent from a year ago to $24 billion in the first half of the year, data complied by Thomson Reuters showed.

The trend may last for a while longer pending the launch of the long-awaited international board to allow top-quality multinationals such as HSBC and Coca Cola to sell shares to domestic investors, analysts said.

'There will be larger IPOs coming to the market, especially if you take into consideration the international board, which we believe will be launched in the next six to 12 months,' said Cao Xuefeng, head of research at Huaxi Securities in the south western city of Chengdu. The two biggest IPOs in Shanghai this year were the $1.4 billion Sinovel Wind IPO and the $710 million IPO of Pangda Automotive Trade.

That pales when compared to the Hong Kong Stock Exchange which had seen a string of high-profile IPOs this year, including commodities trader Glencore's $10 billion deal and Italian fashion house Prada's $2.1 billion offering.

Source : New Age

market Disclosures

Nurul Islam , one of the sponsors/directors of the bank, has reported his intention to sell 10,00,000 shares out of his total holdings of 68,42,958 shares of the bank at prevailing market price through the stock exchange within next 30 working days.

Shahjalal Islami Bank
Khandoker Sakib Ahmed, one of the sponsors/directors of the bank, has reported his intention to sell 1,30,000 shares out of his total holdings of 62,67,701 shares of the bank at prevailing market price through the stock exchange within next 30 working days.

Delta Spinners
Trading of the shares of the company will remain suspended on record date today for EGM.

ICB mutual funds
On the close of operation on June 28, 2011, the ICB mutual funds have reported net asset value for First ICB MF of Tk 10,615.83, Second ICB MF of Tk 2,529.86, Third ICB MF of Tk 1,894.61, Fourth ICB MF of Tk 2,204.02, Fifth ICB MF of Tk 1,918.43, Sixth ICB MF of Tk 732.02, Seventh ICB MF of Tk 1,134.37 and Eighth ICB MF of Tk 828.86 per unit on current market price basis against face value of Tk 100 each. Whereas, on the basis of cost price, NAV per unit of the said eight ICB mutual funds were Tk 1,173.41, Tk 780.59, Tk 592.67, Tk 587.86, Tk 427.55, Tk 240.77, Tk 320.74 and Tk 277.71 respectively against face value of Tk 100 each.
    Source: DSE
Source : New Age

Northern General insurance re-elects chairman

Nasiruddin has been re-elected chairman of the board of directors of Northern General Insurance Co Ltd.

The board at its 129th meeting re-elected Nasiruddin as the chairman, said a news release.

Nasiruddin is a sponsor director and chairman of executive committee of Social Islami Bank. He is the owner of Nasim Trading Company and Nams Trade Corporation.

Source : New Age

Caviar makes itself at home in UAE desert

Far away from the Caspian Sea, sturgeon are raised in ponds cooled in the heart of the Gulf desert of Abu Dhabi, carrying in their wombs a form of black gold strange to these countries — caviar.

Production of the desert-grown caviar will begin later this year and by 2012, consumers in the oil-rich Gulf region will begin savouring the 'food of the kings'.

'Abu Dhabi is an ideal location for distribution of the world's growing markets for high-quality caviar and sturgeon fillet. In fact, in the UAE alone, demand is around 14 tonnes per year,' said Robert Harper, group commercial director at the Royal Caviar Company.

The first stock of fish was brought in to the United Arab Emirates from Germany and the factory, which will breed its own fish in future, aims eventually to produce 35 tonnes of caviar per year.

In the 50,000-square-metre (5,38,000 square feet) factory, in the Abu Dhabi's industrial zone, special equipment is used to clean water using a biological filtration system with a semi-automated feeding system.

The group also plans to finally produce its own fish food.

In another room, technicians in lab coats in carefully place the anaesthetised female fish on a marble slab, where she undergoes an ultrasound test to check for the presence of caviar, the results of which could either show no eggs, white eggs or the precious black caviar eggs.

'In this micro-environment, the sturgeon has no natural predators, and its mortality rate is extremely low,' says Harper. 'Caviar lovers can enjoy legally and ethically produced caviar.'

Meanwhile, Ahmad al-Dhaheri, chief executive officer of Bin Salem Holding group, which owns the The Royal Caviar Company, told reporters: 'The sturgeon are threatened with extinction in its natural habitat in the Caspian Sea and by producing it here, we are helping protect this species of fish.'

The waste water will be used to water green areas in the desert emirate of Abu Dhabi, said Dhaheri.

The project costs $115 million, according to the chief financial officer of the parent company, Michel Nassour.

The UAE-made caviar will be sold at prices between four and six dollars per gram, said Harper, similar to the prices of Caspian Sea caviar.

The factory will also produce up to 700 tonnes of fresh and smoked sturgeon meat every year.

'Genuine' caviar is prized worldwide as a luxurious and highly expensive product due to the scarcity of the sturgeon and the long time it takes to the fish to carry the sought-after black eggs.

A sturgeon does not yield caviar until after four-and-a-half years, when its weight reaches around 10 kilogrammes, one-tenth of which would be pure caviar, said Christoph Hartung, chairman of United Food Technologies, the German partner in the project.

'The caviar of the desert will be excellent,' said Hartung.

The finest caviar comes from the Caspian Sea, where Iran is a leading producer.

Russia, the world's second-largest official producer of caviar, banned the harvest of sturgeon caviar in 2006 to help fight overfishing. Caviar production resumed in specially designed farms in 2010.

The Abu Dhabi-based factory, which began operations in 2008, currently has nearly 18 tonnes of fish with 124 more tonnes to arrive this year.

They will give birth to what the company says is the 'first generation of local' sturgeon in the Emirati capital, which sits on almost eight per cent of the world's reserves of oil — the country's other black gold.

Source : New Age

MA Halim Chy new AMD of Pubali Bank

The board of directors of Pubali Bank Limited recently appointed MA Halim Chowdhury as additional managing director of the bank on contractual basis.

Prior to the new assignment, he was deputy managing director of the bank, said a news release.

He was promoted to general manager of the bank in 2006. He joined Pubali Bank as principal officer in 1988.

Source : New Age

Tapan Chy new chairman of Pioneer Insurance Company

Tapan Chowdhury has recently been elected as the chairman of Pioneer Insurance Company Limited.

He was elected in the 158th board meeting of the company held on Thursday, said a news release.

Former adviser to the caretaker government, Chowdhury is the managing director of Square Pharmaceuticals, Square Textiles and Square Hospitals. He is also an executive committee member of board of governors of Bangladesh Enterprise Institute and board of directors of the Bangladesh Textile Mills Association.

Source : New Age

BlackBerry under attack in corporate cradle

The BlackBerry, once ubiquitous in business, faces deep challenges in that market as more companies allow employees to pick their own smartphones and add third-party security applications.

One of the BlackBerry's main selling points has been Research in Motion's top-tier security and management features, which appeal to IT managers eager to control what workers do with corporate information and protect business systems from cyber attacks.

But with companies such as Good Technology and MobileIron offering applications that could untether IT managers from their BlackBerrys, analysts say that consumer-market pressures could intrude into RIM's mainstay corporate market.

Only two of nine major US companies contacted by Reuters said they exclusively use the BlackBerry, namely Boeing and Exxon Mobil.

The remaining seven—Alcoa, Caterpillar, DuPont, Kraft Foods, PepsiCo, Microsoft and Verizon Communications — support at least one other brand, such as Apple's iPhone or phones that run Google's Android or Microsoft Windows.

'I would say their enterprise base has been besieged really, first by Apple, then by Android,' John Jackson, a mobile device analyst at CCS Insight, said of RIM. 'What's happening in the consumer market is repeating itself in the enterprise market. They've been materially hurt in their core enterprise market.'

RIM's share of the US smartphone market stood at 25 per cent in April, down from 35 per cent in October last year, pushing BlackBerry to third place from first place in the market, according to research firm comScore.

Source : New Age