Index. Badak, 87-8 Badan Koordinasi Penanaman Modal (BKPM), see Indonesian Investment Coordinating Board Badan Pelaksana Pasar Modal, see

Transcription

1 Index Agriculture, 17 agribusiness, 134 productivity improvement, 15, 57 Allende, 216 Andean Group, 5 Antifraud provision of corporate laws, 182, 188 Argentina, 228 Arun, 87-8 Badak, 87-8 Badan Koordinasi Penanaman Modal (BKPM), see Indonesian Investment Coordinating Board Badan Pelaksana Pasar Modal, see Indonesian Capital Market Executive Agency Balance of payments, 4, 11, 75 Bank Bumi Daya, 42 Bank Central Asia, 42 Bank Dagang Negara, 36, 42 Bank Ekspor Impor Indonesia, 42, 44 Bank Industri Negara, 55 Bank Mergers, Bank Negara Indonesia, 36, 42 Bank of Indonesia, 35-6, 41, 51, 55, 192-3,203 (see also Central Bank) Bank of Java, 35 Bank Pembangunan Indonesia, 36, 55 Bank Perdania, 52 Bank Rakyat Indonesia, 44 Bank reform laws of , 41, 55 Banking credits, 39, 41, 44, 51-2, 136 branch offices, 50, 64 licences, 50--3, 221 interbank, 49, 52-3, 57, 203 lending, 5, 13, 47, 53, 147, 217, 225 Banking structure, Banks,22,28, 140,204 Bapepam, see Indonesian Capital Market Executive Agency Bapindo, see Bank Pembangunan Indonesia Basic Law on Forestry, Act No. 6 of 1967, 103 BAT, see British American Tobacco Company Bata shoes, 196 Bayer Indonesia, 172, 196 Bearer certificates, 187 Belgium, 127 Bhopal, 1 BKPM, see Indonesian Investment Coordinating Board Bond market, 57, 69, 171, 179, 202, 223, 227 Brazil, 31,33-4, 153, 167, 170, 177-8, 186, 228 Britain, 170 British American Tobacco Company (BAT), 156, 192, 196, 199 Brokerage licence, 188 Caltex, 77-8, 81 Canada, 170 Capital controls, 30, 146 Capital Investment Coordinating Board, see Indonesian Investment Coordinating Board Capital markets, 125, 147, 162, 170 Capital Market Policy Council, 187 Capital market regulations, 180 Central Bank, 37-9, 54, 64, 203 discount facilities, 41, 44, 47, 51, 55, 62, 70 Central Java, 192 Certificates of Indebtedness, 202 Chile, 90, 106, 170, 216, 228, 230 China, 21, 124, 230 Chinese in Indonesia, 7, 20--l, 50, 53, 99, , , 145, 160, 205 Christian-Nationalist Indonesian Democratic Party (PDI), 18 Citibank, 34, 42 Coca-Cola Company, 142, 146 Collateral security, 202 Collection practices,

2 236 Index Commercial lending banks, 8, 13, 30, 37 during late 1970s, 4 Commissions, 153 Common stocks, 184 Company Law, , 227 Concession agreements, 22, 77, 219 Continuity, 163 Contracts of work, see Work contracts Currency swaps, 53, 64 Customs, 131, 231 Daiwa Bank, see Japan Danareksa, 62, 139, 141, 150-4, 161, 171, , 186-9, 198-9, 208 pilot promotional projects, 192, 193 (see also National unit trust) Debt long term, 150, 176, 179 short term, 176 Debt-equity swaps, Debt structures external debt, ll, 134, 167,218,228 debt servicing, l1, 13 Demand for equities, 150, 170, 173, 183, 193, 195 Devaluations, 183, 186, 196 result of OPEC price policies, 10 Development Finance Company, 56 Directorate of Taxation, 196 Disclosure, 145-6, 177-8, 180, 185-6, 193, 195, 226 trading transaction exemption, 182 Discounting, 155-6, 176, 203 Distribution of wealth, 122, 135, 139, 161, 223 Diversification, 160 of ownership, 168, 219 Dividends, 93, 150-4, 176, 183, 192, , Domestic financial resources, 30 Domestic housing industry, 56 Domestic Investment Law of 1968, 124 Domestic savings, 11, 33, 37, 41, 167-8, intermediation of, 123, 140, 169 alternative uses of savings, 177, 208 Dutch Heineken, 196 Economic autonomy, 6, 121, 163, 217, Economic pragmatism, 7, 18, 124 Economic Stabilization Council, 41 Emerging Markets Growth Fund, 167 Energy, 10 Equador, 228 Equity market, 23, 140, 151, 179, 199, 222 Equity securities, 57 Equity sharing, 82, 90-4, 136, 162, 206 disincentives, 142, 146 incentives, 140 policy, 23, 122-3, 127, 137, 141, 161, 222 Euro-credits, 13 Exchange controls, 93, 183 Export quotas, 99 Export trade credits, 47 Exports, , non-oil, 10, 14, 47, 219 oil, see Oil industry Expropriation, 136-7, 156, 162, 220 Extractive sector, 17, 22, 74, 121, 217, 221' 226, 230 Ferrosteel payments, 81 Financial assets, 30, 39, 51, 53, 57, 62, 65 Financial deepening, 29, 31-3, 168, 204 Financial sector, 22, 28, 65, 124, 220, 230 Five Year Plans, 16, 55 Replita I, 16 Replita II, 17 Replita III, 17, 198 Replita IV, , 131 Foreign Bank Law of 1968, 39 Foreign branch banks, 52 Foreign direct investment, l-6, II, 18, 122, 125, 162, Foreign investment, 3, 90, 127 applications, , 144 dependence on, 31, 56

3 Index 237 government regulation of, 2, 56, 104, 134 in Third World, 1 motives and benefits, 1, 206 needs, 21 priority investment categories, 126 working capital, 47 Foreign Investment Law of 1967, 8, 103, 124, 133, 136 (see also Bank reform laws of ) Foreign Investment Law of 1976, 131 Foreign-owned companies, 121 and local involvement, 121-2, 142 policy success factors, 163 share offerings, 164, 171 Forest management, 99 Forestry, 97, 126, 163 concessions, 100 France, 170 Freeport Indonesia, 22, 91, 220 Gas sector, 10, 124 exports, 131 (see also liquid natural gas (LNG), LNG trains) General Agreement on Tariffs and Trade (GATT), 54 General Ibnu Sutowo, 8 Golkar (Golangan Karya), 18 Goodyear Indonesia, 139, , 160, 189, 196 Government objectives, 3, 141, 180, 188, 206, 217, 221, 223 Governor of Bank Indonesia, 187 Graft and corruption, 21, 218 Grey market financial system, see Informal market financial system Guided democracy, 6, 124 Guided economy, 36 Hong Kong, 28, 98, 127, 150, 176, 177, 179, 184, 221, 224 IBM, 142, 147 Imports, 131 non-oil, 10 oil, see Oil industry Income distribution, 21, 177, India, 142, 160, 176,201 Indonesian Capital Market Executive Agency, 152-3, 187, 195, 201, 208 Indonesian Investment Coordinating Board (BKPM), 8, 124, 131 Foreign Investment Priority List, 126 Indonesian trade balance, 14 Industrial sector, 125, 133, 202 Industrialization, 11, 183, 199, 221 Inflation, 6-7, 33, 49, 83-4, 127, 155, 183, 184, 218, 229 Informal market financial system, 28 Infrastructure, Insurance companies, 62 Interest, 30, 51-3, 63-4, 93, 177, 183, rate controls, 47 rate subsidies, 44 Inter-Governmental Group on Indonesia, 13, 16 Internal Revenue Service, 83 International Center for Settlement of Investment Disputes (ICSID), 136 International Finance Corporation, 167 International Monetary Fund, 8, 225 International Standard of the Principles of Accounting, 186 Investment Finance Company, 56 Investors Overseas Services, 183 Iran, 19, 154, 195 Jakarta, 36, 52, 70,192,205, rioting, 125 Jakarta Stock Exchange, 23, 63, 125, 132, 140, 144, 147, 152, 161, 179, 182, 185-8, 198-9, 206 Japan,52,80,87,98, ,124,127, 131, 154, , 179 Japanese consortium agreement with Pertamina, 85 Java, 20, 98 (see also Population) Java Bank, 36 Joint operating agreements, 85 Joint ventures, 57, 65, 70, 80, 103, 156, 163 local ownership and, 122-5, 131-4, 162, 219

4 238 Index Joint ventures cont. local partners, 139 NBFis and, 56, 211 Judicial system, 222 Kalimantan, 87, 97-8 Kennecott, 91 Korea, l 02, 139 Korea Electric Company, 170 Kuwait, 178 Labour, 86, 101, 155, employment and job creation, 6, 14, 16, 90, 101, 121,217 intensive projects, 14, 16-17, 81, 125, 217, 225 Leasing companies, 64, 204-5, 221 Libya, 19 Licences, 160, 218 Licencing agreements, 156 Liquid Natural Gas (LNG) LNG trains, 87 Locally owned private companies, 171,205 London Inter-Bank Offer Rate (LIBOR), 64 Malaysia, 98-9, 103, 134, 145, 147, 161, 167, 170, 172, 176, 188, 193 Management contracts, 137, 156 Manila and Makati Stock Exchanges, 171 Manufacturing sector, 22, 74, 127, , 224-6, 230 Merck, 147, 196 Mexico, 30-l, 33-4, 121, 123, 141-2, 153, 167, 170-l, 217,224,228 Mineral contracts, 94 first generation contracts, 91 Presidential Regulation No. 21 of 1976, 93 second generation contracts, 92 third generation contracts, 92 Mineral sector, 163 Mining, 17, 21, 89, 93, 96, 127, 220 Mining contracts, 121 Minister of Finance, 63, 187, 198 Minister of Small-scale Industry, 134 Minister of Trade and Industry, 187 Ministry of Agriculture Act No. 5 of 1967, 99 Ministry of Finance, 62-3, 193, 205, 221 Mobil Oil, 77, 83 Monetary policy, 11, 14, 33 reforms of 1983, 202 stimulative policies, 33 Multinational companies (MNCs), 23 effects of foreign investment, l transfer of ownership, 22, 62 National Insurance Savings Scheme, 47 National Investment Trust, see Danareksa National private banks, 50 National unit trust, 23, 187, 192 Nationalization, 78, 121, 136, 155 Natomas, 156 Natural Gas, 77-8, 87-9, 225 (see also liquid natural gas) Netherlands, 127 Netherlands Trading Society, 36 New stock issues, 152, 199 New Order Government, 134, 163, 216, , 231 New Order (Indonesia), 35, 37, 55, 91, 99, 103, 124 Nigeria, 121, 123, 167, 206 Non-bank financial institutions (NBFis), 55-7, 62, 64, 68, 125, 153-4, 187-9, 192, 203-4, 221 (see also Joint ventures) Non-financial service sector, 22 North Sumatra, 77 Offshore loans, 49 Offshore market, 151 Oil law of 1960, 78-9 Oil sector, 21, 75, 124, 219, 223 domestic involvement and, 10, 82, 220 exports, l 0, 131 in Indonesia's economy, 9, 75-7, 86,202,225 oil prices and, 49, 75, 229 refineries, 87 revenues, 13, 17, 134, 222, 227

5 Index 239 world oil demand, I 0, 85-6 OPEC, 5, 10, 75, 85, 220, 226 Operating control, 161 Orthodox Muslims, 7, 19, 124 Pakistan, 167 Pension funds, 39, 56, 65, 103, 180, Per capita income, 176 Pertamina, 8, 21, 77-80, 84, 87, 130, 220, 223 Pfizer, 147, 196 Philippines, 30, 96, 98-9, 103, 123, 134, 143, 171-2, 218, 228 Plywood industry, 101 price competition and, 102 Population, 77 growth and family planning, 3, 15, 85 pay scales, I 06 standard of living, 7, 17, 37, 217, 225 Preferred stock issues, 172, 183, 184 Pribumi economic well-being, 53 equity ownership, 14, 22, 125 Primary securities market, 138, 153, 170, 173, 176, 192 Private placements, 182 Privatization, 14, 170, 230 Production sharing agreements, 21, 79-82, 84, 220 Public offerings, 141-2, 150--l, 156, 161, 179, 189,222 decision not to go public, 173 going public, 173, 187, 205-6, 224 Public ownership, 134 Qadhafi, 19 Registration of stocks, , 186, 188 Repatriation of capital, 124, 229 Return on equity in banking, 53 other, 202 Return on Capital Employed (ROCE), Richardson Vicks, 147, 196 Royal Dutch Shell, 77 Saudi Arabia, 21 Savings rates, 57, 217 (see also Domestic savings) SBI, see Certificates of Indebtedness Secondary market, 62, , 152, 173, 176-8, 182, 188-9, 193, 203, Securities market, 57, 123, 135, 150, 154, 160, 162, , 183, 188, 192, 196, 199, 220, 223, 226 protection for outside investors, 184 trading process, 193 trading volume, 189 Semen Cibinong, 153, 186, 196 Service sectors, 133, 221 Share prices, 96, 151, 188, 192 Shareholder rights, 185 Sime Darby, 161, 193 Singapore, 7, 28, 47, 150, 167, 176, 179,221 Singapore Inter-Bank Rate (SIBOR), 64 Small business, 134 Small investors, 177-8, 189, 208 Societe Generale de Surveillance (SGS), see Customs South Korea, 7, 28, 31, 33-4, 87, 103, 143, 153, 167, 171, 176, 178-9, 184, 188, 195, 201, 206, 224 South Korean Securities Investment Trust Business Law, 178 Soviet Union, 124 Spain, 170 Squibb, 147, 196 State enterprise state banks, 37, 39, 45, 50--2, 140, 151, 154, 188, 192-3, 198 state-owned enterprises, 121 Stock markets, 167 Stock ownership, 122, 163, 199 Stockholders, 139 Subcontracting, 121 Subsidies, 30--1, 41, 45, 50, 54, 189, 225 reduction of domestic oil and, 85

6 240 Index Suharto, Dr, 18, 81, 124-5, 127, 179, 200, 218 New Order, see New Order (Indonesia) Sukarno,99, 184 nationalization of foreign companies, 21, 35, 90, 103 see also Guided democracy; Guided economy Sulawesi, 192 Sumatra, 20, 87, 97-8, 125, 192 Supply of shares, 170 Taiwan, 7, 28, 52, 102, 152-3, 167, 176-7, 184,201,224 Taska, see also National Insurance Savings Scheme Tax disincentives, 123, 143 incentives, 23, 51, 198, 200, 209, 226 law change effects in economy, 18, 140, 231 legislation, 63, 95, 144, 180 policy, 96 revisions of 1984, 64, 198, 202 withholding, 53, 180, 199, 223 Technical assistance contracts, 84 Telefonos de Mexico, SA, 170 Texas Instruments, 141 Thailand, 31, 33-4, 134, 167, 172, 176, 201 Third World Centre on Transnational Corporations, 6, 216 intermediating financial resources, 167 Timber industry, 10, 123, 225 government policy, 99, 121-2, 223 Time deposits, 37, 70, 140, 150, 154, 176,180,184,189,202,208,221-3 with deposit money banks (DMBs), 44-5,64 Transfer payments, 146 Transfer pricing, 5, 93 Turkey, 170 Underwriting, 57, 152-3, 187-8, 192, 195, 220 see also Danareksa Unilever, 151, 196 United Nations United Nations Group of Seventy Seven, 5 United States, 81, 83, 98, 102, 127, 131, 168-9, , US Securities and Exchange Commission, 187 US Tax Ruling of 1976, 83 Value added tax, 18 Venture capital, 18 Village banks, 39 Voting rights, 161, 193, 201 West Germany, 127, 169, 170 West Iran, 91 Work contracts, 21, 78, 80, 82, 220 Working control, 160 World Bank, 218, 225, 228 see also Inter-Governmental Group on Indonesia; agriculture; International Finance Corporation