More rate hikes likely to halt rupiah slide amid rout

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More rate hikes likely to halt rupiah slide amid rout

ASEAN+ June 01, 2018 01:00

By THE JAKARTA POST
ASIA NEWS NETWORK
JAKARTA

INDONESIA’S second interest-rate increase in two weeks may be followed by more policy tightening to stem a slide in the rupiah amid an ongoing rout in emerging markets.

While the rupiah strengthened for a fifth day yesterday, the central bank isn’t in the clear yet. Much will depend on geopolitical events – from snap elections in Italy to ongoing trade disputes between the US and China – and how much further the US Federal Reserve will tighten monetary policy. Those have added to market jitters after a rout in emerging markets pushed the rupiah to its weakest level since 2015 last week.

“We don’t want to declare being out of the woods quickly,” said Vishnu Varathan, head of economics and macro strategy at Mizuho Bank Ltd. in Singapore. “Watch this space. We can’t take our eyes off the wobbles in the markets right now.”

The rupiah rose to the highest in a month on Thursday after holding gains below the 14,000 level following the rate announcement. The currency has pared its decline this year to 2.4 percent against the dollar.

Less than a week in office, Governor Perry Warjiyo followed through with a pledge to be “pre-emptive” and to use monetary policy to stabilise the exchange rate by raising the benchmark rate by 25 basis points to 4.75 per cent on Wednesday.

The move came at a special policy meeting held a month before its regular scheduled one, allowing the central bank to hike before the Fed’s expected tightening in June.

Warjiyo also flagged the possibility of further rate increases, depending on how domestic and global developments play out and how aggressive the Fed is in tightening policy. The central bank is open to hold additional monetary policy meetings if the situation demands, Deputy Governor Dody Budi Waluyo said on Wednesday.

Indonesia has been one of the hardest hit emerging markets in Asia because of its reliance on foreign inflows to finance its current-account deficit. Foreign ownership of government bonds is also relatively high at about 38 percent, making the economy vulnerable to sharp swings in global sentiment.

The currency “is the biggest concern among foreign investors,” said Evan Lie Hadiwidjaja, head of research at PT Sinarmas Sekuritas. “Currency stability has to come first, especially given the uncertainties and volatilities in the global market.”

Southeast Asia’s largest economy hasn’t been alone in defending its currency against a resurgent dollar and rising US yields. Turkey raised interest rates by 300 basis points at an emergency meeting last week, while crisis-hit Argentina pushed up its benchmark rate to 40 percent earlier in May.

The Philippine central bank raised its rate on May 10 for the first time since 2014.

For Indonesia, “a couple more rate hikes seems likely,” Krystal Tan, an economist in Singapore at Capital Economics Ltd., wrote in a May 30 note.

Banks urged to back fintech push

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

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Banks urged to back fintech push

ASEAN+ June 01, 2018 01:00

By VIET NAM NEWS
ASIA NEWS NETWORK
HANOI

THE financial technology (fintech) sector is facing difficulties of capital mobilisation shortage, an inadequate legal framework and banks’ hesitance in co-operation, said Le Minh Hung, governor of the State Bank of Vietnam (SBV).

Hung told the Vietnam fintech forum 2018 held in Hanoi on Wednesday that fintech and banks could contribute to expand financial universalisation, and promoting hunger eradication and poverty reduction while enhancing social equality and sustainable economic development.

“In recent years, SBV has been holding dialogues with businesses in the fintech sector in order to timely resolve their difficulties and help them join the market,” he said.

The central bank has allowed firms to provide payment services on a pilot basis to meet with the market’s demand since 2008. SBV granted licences to 27 organisations specialising in intermediary payment platforms after setting up an appropriate legal framework.

However, the rapid development of fintech has proven a challenge to the banking and financial sector. The necessary legal and management framework has been developed slower than the development of products and services. The issues of human resources, network security, hi-tech crime and information sharing have also been challenges for the fintech sector.

This led to the central bank setting up a steering committee for fintech in March 2017 to complete required ecosystem for fintech companies to develop in Vietnam.

He added that many banks have co-operated with fintech enterprises to provide services, thus diversifying their products and services. The co-operation trend has become more popular in recent years, as it is generally considered a win for both sides.

The relationship helped maintain and develop a modern financial and banking system with creative financial products to meet the increasing demand of customers.

The development of fintech and co-operation with the banking sector are considered preconditions for improving access to financial and banking services for Vietnamese people, he added.

The governor also pointed out that the steering committee completed a report to assess the fintech ecosystem in Vietnam. They focussed on key issues facing the fintech industry for further consideration, including e-payments, electronic know your customers (e-KYC), peer-to-peer lending (P2P lending), open application programming interfaces (Open APIs) and blockchain technology. These are now important applications in the modern financial and banking system.

The committee also instructed to establish direct dialogue channels with fintech companies to create a closer relationship with State agencies.

Central bank deputy governor Nguyen Kim Anh, head of the steering committee, said the most important task for SBV in the upcoming time is to continue to study a regulatory sandbox framework for fintech businesses and startups to experiment with creative new products and services under supervision of the central bank. The regulatory sandbox framework would create an environment for fintech firms to have new products and minimise risks for customers and relevant parties.

Dominic Mellor, ADB senior country economist, said the ADB has always been ready to support the SBV to encourage fintech development and complete the necessary legal framework for the industry’s development.

Vietnam has some unique advantages, especially in the IT sector, which could serve as a foundation for fintech development toward popularisation, he said. Currently, there are around 80 fintech companies operating in Vietnam.

The forum was jointly held by ADB and the Australian government through the Mekong Business Initiatives (MBI) in co-operation with SBV to share development trends in the fintech sector in the upcoming time, especially management solutions used in other countries.

Under the event, SBV and ADB also organised the final round of the Vietnam Fintech Challenge 2018.

The competition is the first of its kind in the country and aims to create conditions for 15 fintech companies to work with commercial banks to employ solutions in the future.

According to the research of Solidiance, Vietnam’s fintech market is estimated to increase from US$4.4 billion last year to $7.8 billion by 2020.

Philippines govt spending surges 43%

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Philippines govt spending surges 43%

ASEAN+ June 01, 2018 01:00

By PHILIPPINE DAILY INQUIRER
ASIA NEWS NETWORK
MANILA

THE Philippine government’s spending surged by 43 per cent year-on-year in April to 261.2 billion peso, driven mainly by a doubling of expenses on infrastructure, according to the Department of Budget and Management.

This brought disbursements for the first four months of 2018 to 1.03 trillion peso, up 29 per cent from 798.4 billion peso in the same period last year.

Budget Secretary Ben Diokno yesterday said in a briefing that disbursements for infrastructure and other capital outlays last month jumped 96 per cent to 65.6 billion peso from 33.5 billion peso in April 2017.

“We are keeping our foot on the gas pedal with regard to government spending,” Diokno said. “We will maintain this positive momentum for the rest of the year.”

The Department of Public Works and Highways helped rev up spending with the upgrading and widening of roads and bridges; building and improvement of roads that lead to tourist destinations; building flood control structures and drainage systems; preventive maintenance for existing infrastructure, and payment of right-of-way claims.

Also helping accelerate spending were outlays for state universities and colleges, particularly on information technology gear for the University of the Philippines System.

Queen Elizabeth II has a framed photo of Meghan Markle and Prince Harry

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  • Photo courtesy of Elle
  • Photo courtesy of Elle
  • Photo courtesy of Elle

Queen Elizabeth II has a framed photo of Meghan Markle and Prince Harry

ASEAN+ May 31, 2018 16:56

By Philippine Daily Inquirer
Asia News Network

It’s been a little over a week since the Royal Wedding and we wonder how Meghan Markle and Prince Harry are finding the married life so far. We haven’t been seeing much of them lately but we did see some news about Queen Elizabeth II.

According to Elle, the Queen was hosting the Honorable George Brandis, the Australian High Commissioner to the United kingdom on May 30. Here is a photo from their meeting. Can you spot an important detail?

Photo courtesy of Elle

Well, if you zoom in on the table on the left you will see a framed photo of the Duke and Duchess of Sussex. Yes, Meghan has made it into the Queen’s sitting room along with other framed pictures.

Photo courtesy of Elle

We wonder what other photos the Queen has scattered around the palace. Cute photos of her great grandchildren perhaps?

Immigration plans to issue 10-year passports this year

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Immigration plans to issue 10-year passports this year

Breaking News May 31, 2018 15:16

By The Jakarta Post
Asia News Network

As a result of increased public demand, the Law and Human Rights Ministry’s Immigration Directorate General is planning to extend the validity of Indonesian passports from five to 10 years.

The Immigration Director General Ronny F. Sompie said it would implement the new policy starting this year.

“If we can do it this year, we will implement it, since all we have to do is change the validity period; we’re currently still studying the implication of such a policy,” said Ronny in Batam, Riau Islands, on Wednesday during his visit to the immigration counter at the Public Service Mall (MPP).

Read also: Japan passport overtakes Singapore’s as world’s most powerful

Ronny said the 10-year passport validity offered a solution when the high demand for passports from the public no longer matched the capability of the Immigration Directorate General.

There are currently 125 immigration offices across Indonesia and several counters at MPPs and immigration working units that issue new passports, said Ronny, who did not elaborate on the demand.

“The Law and Human Rights Ministry’s Research and Development Agency is currently helping us to study [the impact] of extending the validity period to 10 years,” said Ronny, adding that the number of passport pages would not change.

How not to park a Porsche: Sydney hotel valet’s attempt goes horribly wrong

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The valet was trying to park the Porsche when, instead of reversing, the car reportedly accelerated into the back of the Subaru SUV and ended up underneath./INSTAGRAM/JONOBOZO
The valet was trying to park the Porsche when, instead of reversing, the car reportedly accelerated into the back of the Subaru SUV and ended up underneath./INSTAGRAM/JONOBOZO

How not to park a Porsche: Sydney hotel valet’s attempt goes horribly wrong

ASEAN+ May 31, 2018 14:46

By The Straits Times
Asia News Network

SYDNEY: A hotel valet gave a whole new meaning to the term double-parking when he accidentally drove a Porsche sports car under a sport utility vehicle outside a Sydney hotel.

The accident occurred near the Hyatt Regency Sydney in the city centre on Thursday (May 31).

The valet was trying to park the Porsche when, instead of reversing, the car reportedly accelerated into the back of the Subaru SUV and ended up underneath, the Sydney Morning Herald reported.

The authorities had to cut the driver out of the car as a large crowd watched during the morning rush hour, Australian Broadcasting Corp online said.

“Obviously the staff member was embarrassed and a little bit shocked, it kind of scooped the other car up, but the main thing is that he’s OK.”

A witness told the ABC: “I heard this revving and this bang and turned around and the Porsche was literally underneath this other car. It was crazy.”

Another witness, Jonathon Bayle, said: “When I first saw this, I thought it was being shot for a TV show or a movie, but apparently it’s real.”

Anti-Kremlin journalist back from the dead as Ukraine admits set-up

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  • Flowers lay under a picture of the 41-year-old anti-Kremlin reporter Arkady Babchenko on the memorial wall of Moscow’s journalist’s house in Moscow on May 30.//AFP
  • Russian opposition journalist Arkady Babchenko attends a Ukrainian Security Service (SBU) press conference in Kiev, Ukraine on May 30.//EPA-EFE

Anti-Kremlin journalist back from the dead as Ukraine admits set-up

ASEAN+ May 31, 2018 14:37

Kiev – Ukraine sought to justify faking the death of an anti-Kremlin journalist who appeared alive and well at a press conference in Kiev less than 24 hours after he was “murdered”, citing an alleged Russian plot to kill him.

    Onlookers gasped and applauded as Arkady Babchenko re-appeared on Wednesday, introduced by the head of Ukraine’s security service, who said the murder had been staged in order to foil an attempt on his life by Moscow.

Less than 24 hours earlier, Ukraine said the reporter had died from three gunshots to the back in the stairwell of his apartment building in a contract-style killing in a case that provoked an outpouring of grief and a diplomatic spat.

“Thanks to this operation we were able to foil a cynical plot and document how the Russian security service was planning for this crime,” security service head Vasyl Grytsak said at the press conference.

Grytsak announced authorities had arrested the alleged mastermind of the plot, saying a Ukrainian citizen named only by the initial G. had offered to pay a hitman to carry out the killing after being recruited by Russian special forces and paid $40,000.

Ukrainian President Petro Poroshenko later met Babchenko and wrote triumphantly on Facebook that “millions of people are celebrating” the journalist’s new lease of life.

The planned attack was “organised from Russian territory” with the aim of “destabilising the situation in Ukraine” and “killing one whom Russia fears most of all”, he said.

“Thanks to Arkady and the Ukrainian security chiefs, for not allowing this scenario to be carried out in our country.”

Anton Guerachtchenko, an adviser to Ukraine’s interior minister, likened the plot to a story from a crime novel, saying on Facebook that “Sherlock Holmes successfully used the method of staging his own death to efficiently solve complicated crimes”.

But Moscow, later Wednesday, condemned the plot, with the foreign ministry saying “now the true motives are beginning to be revealed for this staging, which is totally obviously yet another anti-Russian provocation”.

Foreign ministry spokeswoman Maria Zakharova said it was “great news” that Babchenko was alive but on Twitter she slammed the “propagandistic effect” of the set-up.

 

– Put wife through ‘hell’ –

 

Grytsak, during his press conference, thanked Babchenko and his family, who he said were in the loop about the secret operation.

The reporter, however, apologised to his wife for putting her through “this hell she had to live through for three days…but there was no other option”.

He later defiantly promised on Twitter to “die at 96 after dancing on Putin’s grave”.

“God, it got so boring being dead,” he wrote. “Good morning.”

News of the “death” of the prominent Russian war correspondent and former soldier set off a series of recriminations between Kiev and Moscow, and pictures and flowers were laid by mourners at the Russian embassy in Kiev.

Ukrainian officials led by Prime Minister Volodymyr Groysman accused Russia of being behind the killing of the Kremlin critic, a charge that Moscow batted back.

 

– ‘Pathetic stunt’ –

 

Reporters Without Borders also condemned the faked death.

“It is pathetic and regrettable that the Ukrainian police have played with the truth, whatever their motive… for the stunt,” Christophe Deloire, the head of the Paris-based media watchdog, told AFP.

And Russian investigative journalist Andrei Soldatov, a former colleague of Babchenko, also questioned the value of the operation.

“To me, it’s crossing a line big time. Babchenko is a journalist not a policeman, for Christ sake, and part of our job is trust, whatever Trump & Putin say about fake news,” he wrote on Twitter.

“I’m glad he is alive, but he undermined even further the credibility of journalists and the media,” he added.

 

– ‘Repeated death threats’ –

 

A number of Kremlin critics have been killed in Ukraine in recent years, with one gunned down on a Kiev street in broad daylight and another whose car exploded.

Babchenko fought in Russia’s two Chechen campaigns in the 1990s and early 2000s before becoming a war correspondent and author. He repeatedly said he faced death threats.

He has contributed to a number of media outlets including top opposition newspaper Novaya Gazeta and is an avid blogger, accusing Russian authorities of killing Kremlin critics and unleashing wars in Ukraine, Syria and elsewhere.

He wrote about his experience as a young soldier in the Chechen campaigns in a book published in English under the title “One Soldier’s War”.

Babchenko left Russia in February 2017 after receiving threats, living first in the Czech Republic, then in Israel, before moving to Kiev.

He has hosted a programme on the Crimean Tatar TV station ATR for the past year.

Babchenko made a name for himself with his poignant reportages from the frontlines, including the conflict in eastern Ukraine that has killed more than 10,000 people.

In recent years his increasingly bombastic posts pushed the boundaries of good taste and some of his colleagues and followers stopped reading him on Facebook.

Evacuations urged in Hawaii as lava flow advances

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This image obtained from the US Geological Survey shows a USGS scientist in the Lower East Rift Zone documenting fissure 7 lava fountain on May 27, 2018, in Pahoa, Hawaii/AFP
This image obtained from the US Geological Survey shows a USGS scientist in the Lower East Rift Zone documenting fissure 7 lava fountain on May 27, 2018, in Pahoa, Hawaii/AFP

Evacuations urged in Hawaii as lava flow advances

ASEAN+ May 31, 2018 14:19

By Agence France-Presse
Los Angeles

Authorities urged people in Hawaii Wednesday to evacuate an area at risk of being cut off by a flood of lava from the erupting Kilauea volcano.

“Hawaiian Volcano Observatory reports that lava from several fissures continues to advance toward the Kapoho area,” a Civil Defense message said, referencing an area that was devastated during a 1960 eruption.

“Residents of Kapoho Beach Lots and Vacationland are advised to evacuate. You are at risk of being isolated due to possible lava inundation,” the message added.

Authorities had earlier advised that lava flow from Fissure 8 had blocked a major highway and caused an electricity blackout, and recommended evacuations of other nearby areas as telephone communications were cut.

Meanwhile, a 4.5 magnitude earthquake with an epicenter at Kilauea itself was recorded on Wednesday at 11:00 am (0000 GMT). Although it was felt strongly in the area, authorities dismissed the possibility of a tsunami.

Local authorities could not confirm to AFP how many people would be evacuated. Around 2,000 residents have already abandoned their homes as a result of the eruption, which has destroyed 71 houses so far.

The lava has engulfed an area of approximately 9.5 square kilometers, with the majority ending up in the ocean, creating so-called “laze” — acid fumes created when lava meets water.

Kilauea is one of five volcanoes on Hawaii’s Big Island.

Scientists believe that volcanic activity can be a precursor to a major eruption, similar to the Kilauea eruption in the mid-1920s.

Japan whale hunt killed 122 pregnant minkes

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Japan whale hunt killed 122 pregnant minkes

Breaking News May 31, 2018 12:22

By Agence France-Presse
Tokyo

Japan killed 122 pregnant minke whales during a highly controversial annual whaling expedition that Tokyo defends as scientific research but conservationists call “gruesome and unnecessary.”

The four-month expedition in the Antarctic ended in March after the fleet killed 333 minke whales, according to a report submitted by Japanese authorities to the International Whaling Commission last month.

Of those, 122 were pregnant, according to the Japanese report, with dozens more immature whales among those killed.

Humane Society International, a conservationist group, called the figures “a shocking statistic and sad indictment on the cruelty of Japan’s whale hunt.”

“It is further demonstration, if needed, of the truly gruesome and unnecessary nature of whaling operations, especially when non-lethal surveys have been shown to be sufficient for scientific needs,” said the group’s senior program manager, Alexia Wellbelove.

Japan is a signatory to the International Whaling Commission, which has maintained a moratorium on hunting whales since 1986.

But Tokyo exploits a loophole allowing whales to be killed for “scientific research” and claims it is trying to prove the population is large enough to sustain a return to commercial hunting.

It makes no secret of the fact that whale meat ends up on dinner tables.

Japan has hunted whales for centuries, and their meat was a key source of protein in the immediate post-World War II years when the country was desperately poor.

But consumption has declined significantly in recent decades, with much of the population saying they rarely or never eat whale meat.

In 2014, the International Court of Justice ordered Tokyo to end the Antarctic hunt, saying it found permits issued by Japan were “not for purposes of scientific research”.

Tokyo cancelled the hunt the following year, but resumed it in 2016, also killing around 300 minke whales.

‘You’re all going to die’: Parkland shooter’s phone videos released

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

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‘You’re all going to die’: Parkland shooter’s phone videos released

Breaking News May 31, 2018 08:27

By Agence France-Presse
Washington

Nikolas Cruz, the now infamous shooter behind February’s Parkland school massacre, filmed his disturbing plans to attack his former school in footage released by Florida prosecutors Wednesday.

“It’s going to be a big event. When you see me on the news, you’ll know who I am,” Cruz said, filming with his cellphone.

“My name is Nik, and I’m going to be the next school shooter of 2018,” said the 19-year-old, in clips apparently in part filmed on February 14, the day of the shooting, which killed 17 students and staff members at Marjory Stoneman Douglas High School.

“My goal is at least 20 people,” he added, speaking in a calm, nonchalant voice in an outdoor setting.

“You’re all going to die. Pew pew pew pew pew. Ah yeah. Can’t wait.”

Cruz explained his plan to take an Uber taxi, armed with his semi-automatic AR-15 rifle, to his old school. The video also revealed he initially intended to shoot down at students in a courtyard.

“All the kids in school will run in fear and hide. From the wrath of my power they will know who I am,” Cruz said.

“I am nothing, I am no one, my life is nothing and meaningless,” added the shooter, who was arrested soon after the massacre.

“I hate everyone and everything. With the power of my AR, you will all know who I am.”

Cruz faces the death penalty if he is convicted of first-degree murder.