Soft Skill

The Foods and Beverages Merchants in Jabodetabek Lost Their Income Until Rp 200 billion

Bad weather that hit several regions in Indonesia is large enough to impact the food and beverage industry in this country. For only the Jabodetabek area, the floods predicted suppress the turnover to 25 percent.

Chairman of the Food and Beverage Association of Indonesia (Gapmmi) Adhi Lukman explained, a decrease of revenue is due to the difficulty of the distribution of products from the factory to the market because of the flooding block. Thus, it spreads on the decline in consumption.

As an overall result, Adhi estimated the food and beverage industry in Jabodetabek lost the income until Rp 200 billion per day. “In the normal situation, the income in each day for this region reached USD 800 billion,” he said on 2014Tuesday (01/21/).

                                                                                              

It is not only the distribution to the consumer, food and beverage manufacturers must also bear the losses due to the distribution of raw materials from the another region which also faltered.

For example, the transportation of fresh fruit and meat from Central Java, currently takes up to four days. Though, it usually takes only a half day. “Whereas within five days, the fresh raw materials will rot in about 50 percent” he said.

                                                           

It hasn’t counted yet the losses because the factory could not be operated due to workers who could not get in because of flooding, or because there is no electricity supply due to outages by PLN in some areas.

Despite the losses is in sight, according to Adhi, manufacturers of foods and beverages will not raise their selling prices. Because this problem is only temporary.

This Year, Rupiah Is Predicted Will Be Number 1 In Asia 

Some analysts of the most accurate version of Bloomberg predicted that Rupiah will rise from the worst position to be the number one among other Asian currencies this year.

According to Lloyds Banking Group Plc, the rupiah will strengthen by 6.8 percent in 2014 to a level of 11,400 per U.S. dollar. Meanwhile, Societe Generale SA will see the rupiah was at 10,250 at the end of next year. In comparison, the median of 23 analysts surveyed by Bloomberg predict the rupiah will be at the level of 12,200 per U.S. dollar.

Among the 10 countries of Asia, only China can beat Indonesian growth.

There are several factors that will allegedly keep the Rupiah. One of them, a steady growth of the Indonesian economy and the reduce of trade deficit. Two factors are again the main attraction for foreign funds to re-invest in Indonesia.

“We predict the current value of the rupiah is below as it should be (undervalued) considered the dynamic growth in Indonesia,” said Jeavon Lolay, Global Research Director of Lloyds .

He added that the Indonesian economy will move in line with the positive growth in the global economy, which in turn will help to restore the level of exports in the next second quarter.

As a record, Indonesia’s currency has gained 0.7 percent this month to 12,085 per U.S. dollar. This is the best reinforcement among 11 Asian most frequently currencies traded.

Rising oil price a boon for the US Economy

According to the investors, the high-ceilinged oil price has come up with positive news for the U.S. economy. The price rose because of the fact that the private sector added almost 111,000 jobs in October 2011. The Automatic Data Processing reported that the service industries got plenty of benefits.

As a result of soaring oil prices, Benchmark crude rose by 32 cents to end the day at $92.51 per barrel in New York, while Brent crude lost 20 cents to finish at $109.34 a barrel in London. After a two-day meeting of the Federal Reserve, which doesn’t announce any new policy, the prices on oil may slip a little bit.

The studies depicted that the decision taken by the Fed has a greater impact on oil prices. Last year the Fed decision supported the prices of oil as well drained $600 billion into a bond-buying program. Hence, such things influenced the currency and commodity markets. As a result of alteration in oil price, Benchmark crude mounted 20% higher in 2010.

Despite the fact that consumers are ready to spend more, it is a very difficult task to manage downside risk. Hence, the economy is losing its importance on the commodity market. If the economy stays standstill, then the central bank assures to take a leap step.

As mentioned by the Energy Information Administration, the prices on U.S. oil and gasoline climbed up in the last week in October 2011 because of less demand for oil. Another point to note down here is that the demand for distillate supplies that include diesel and heating oil dropped enormously. However, the demand for distillate supplies, especially in foreign countries resulted to increase in export.

The demand for diesel is escalating because farmers require the fuel for harvesting. In North America and U.S. industries, many energy companies are expanding oil and natural gas drilling operations.

The retail price on diesel has increased 80.1 cents higher per gallon. Its price will keep on rising because of the existing market scenario. According to, Wright Express and Oil Price Information Service, gasoline prices fell less than a penny to a national average of $3.432 per gallon. The price of gasoline is soaring at $4 per gallon. However, a gallon of regular oil is available at reasonable rate.

According to the energy trading, the heating oil lost 3.72 cents to end at $3.0007 per gallon. Gasoline futures finished at $2.6272 per gallon. Natural gas lost 3.2 cents to end at $3.749 per 1,000 cubic feet.

1. floods predicted suppress the turnover to 25 percent.(PAST TENSE)
2. it spreads on the decline in consumption.(PRESENT TENSE)
3. Adhi estimated the food and beverage industry in Jabodetabek lost the income until Rp the 200 billion per day.(PAST TENSE)
4. the income in each day for this region reached USD 800 billion(PAST TENSE)
5. it usually takes only a half day(PRESENT TENSE)
6. the fresh raw materials will rot in about 50 percent”(FUTURE TENSE)
7. It hasn’t counted yet the losses(PRESENT PERFECT)
8. manufacturers of foods and beverages will not raise their selling prices(FUTURE TENSE)
9. the rupiah will strengthen by 6.8 percent in 2014 to a level of 11,400 per U.S. dollar.(FUTURE TENSE)
10. Societe Generale SA will see the rupiah was at 10,250 at the end of next year(FUTURE TENSE)
11.  Indonesia’s currency has gained 0.7 percent this month to 12,085 per U.S. dollar.(PRESENT PERFECT)
12.  the high-ceilinged oil price has come up with positive news for the U.S. economy(PRESENT PERFECT)
13.  the economy is losing its importance on the commodity market(PRESENT CONTINOUS TENSE)
14. many energy companies are expanding oil and natural gas drilling operations.( PRESENT CONTINOUS TENSE)

15. The price of gasoline is soaring at $4 per gallon( PRESENT CONTINOUS TENSE)

16. Gasoline futures finished at $2.6272 per gallon(PAST TENSE)
17. He added that the Indonesian economy will move in line with the positive growth in the global economy(PAST TENSE)
18. because the factory could not be operated due to workers who could not get in because of flooding(PAST TENSE
19. Last year the Fed decision supported the prices of oil as well drained $600 billion into a bond-buying program(PAST TENSE)
20. Some analysts of the most accurate version of Bloomberg predicted that Rupiah will rise from the worst position(PAST TENSE)