Hi, Singapore. Here we are.

Inter Milan and Football Schools in Indonesia

Inter Milan will open football schools in Indonesia, the club said in the capital Jakarta on Wednesday, following a trend started by Arsenal and Liverpool.

“We are planning to build several football schools here,” club chief executive Ernesto Paolillo told reporters through a local translator.

“Indonesia is very important for us because the country has a lot of Inter Milan fans,” he said, without giving further details of the plan.

Local media showed images of the team arriving at the airport in Jakarta, where throngs of fans greeted them. The club claims to have 15 million fans in the country of 240 million people.

The team will play a friendly Thursday evening against an all-star Indonesian team made up of players from the national team, elite leagues and the under-23 youth team.

They will play the same team in a second friendly on Saturday.

“It’s the first time I’ve been to this country and it’s a real honour,” said captain Javier Zanetti.

“Thank you for the warmth you’ve shown. It’s been a tough season but we hope to make our fans happy, at least over the next few days.”

(AFP)

Ehm! Indonesia’s Beauty at the French Riviera

Amid the red carpet glamor and celebrity schmoozing of t he Cannes International Film Festival, actress Dian Sastrowardoyo finds herself with the honor of serving as the face of Indonesia for the first time.

Founded in 1946, Cannes came into being right around the same time that Dian’s homeland gained its independence. Today the festival, named for the French Riviera town that plays host, is one of the international film industry’s marquee annual events.

“It’s become one of the most prestigious film festivals in the world,” said Juliette Derosiaux, audio visual executive of the Institut Francais Indonesia. “Every year, the best movies from all over the world, from all genres, are presented.”

A series of film screenings, master classes and exhibitions are scheduled during the 12-day festival, which wraps up on Sunday. But perhaps the most popular feature is the red carpet processions, in which world-famous celebrities looking their best walk into the Palais des Festivals et des Congres, where the film festival is held.

This year, Dian will share in that limelight. L’Oreal Paris has selected the actress as its first Indonesian brand ambassador to attend the prestigious gathering.

“I feel honored and grateful to have been chosen,” Dian said, beaming.

L’Oreal Paris has been the official makeup partner of the event for 15 years. Every year, L’Oreal invites international brand ambassadors, who are all famous actresses, to the festival.

This year, Dian will attend Cannes along with American actresses Andie MacDowell and Aimee Mullins, Chinese beauty Gong Li, Australian actress Megan Gale and Bollywood actress Sonam Kapoor.

“This is a very important chapter, a new chapter in the history of L’Oreal Paris in the Cannes Film Festival,” said Vismay Sharma, president director of L’Oreal Paris Indonesia. “As a tribute to Indonesia as a country and a tribute to the Indonesian market, this year, for the very first time, we invited an Indonesian spokesperson to the Cannes Film Festival.”

Dian is also the first brand ambassador from Southeast Asia to represent L’Oreal at Cannes.

“China, India and Indonesia are countries with the biggest populations in Asia,” said Monika Ardianti Sugiharso, marketing manager of L’Oreal Paris Indonesia. “L’Oreal Paris has agreed that it’s time for Indonesia to have a presence in the international film festival this year.”

The selection process began early this year, with L’Oreal Paris Indonesia forwarding Dian’s profile to its headquarters in Paris.

“Dian has multi-dimensional beauty,” Monika said. “She’s not only beautiful on the outside, but she’s also very talented.”

The 30-year-old film actress started her career as a model, which took off in 1996 after winning Gadis Sampul, a beauty pageant held by Gadis magazine.

It was film director Rudi Soedjarwo who first recognized her acting talents and invited her to star in “Bintang Jatuh” (“Shooting Star”) in 2000. But it was her second movie, “Pasir Berbisik” (“Whispering Sands,” 2001) that catapulted Dian to stardom. The film earned Dian the Best Actress awards at the Deauville Asian Film Festival and the Singapore International Film Festival in 2002.

She also won the title of Best Actress at the Indonesian Film Festival (FFI) in 2004, for her role in the movie “Ada Apa Dengan Cinta?” (“What’s Up With Love?,” 2002) and 2005’s Most Promising Newcomer title at the Asia-Pacific Film Festival in Kuala Lumpur.

“I’ve attended a number of international film festivals before,” Dian said. “But none of them matches the scale of the Cannes Film Festival that I’m about to attend. I’m so thrilled.”

Dian will attend a series of media interviews and cocktail parties over the weekend.

“I’ll be the first one [brand ambassador] from Indonesia in Cannes,” she said. “The reporters will surely ask a lot about Indonesia.”

Dian and her team have been preparing to answer those questions.

“I have to be prepared to answer their questions about the current issues on Indonesia, such as gender equality and poverty alleviation,” she said.

Dian will also appear in the most anticipated event of the festival, the closing ceremony, where the coveted Palme d’Or is awarded to the international film industry’s best.

How has Dian prepared for the big event?

“I have to look my best,” she said.

That has meant a strict beauty regime for more than a month prior to Dian’s departure for France.

“No matter how tired I am at night, I have to clean up my face and diligently apply the night cream,” she said. “Soft and supple facial skin is very important for the perfect look.”

Famous American makeup artist William Norris Brasfield, also known as Billy B., will do Dian’s makeup.

Billy B. is one of the most sought-after makeup artists in the world. Among his loyal clientele are top names in the international music industry, including Lady Gaga, Beyonce and Mary J. Blige.

During the film festival, Dian will show off the latest makeup collection from L’Oreal, “Cannes Electric.” The new palette is dominated by neon-bright colors, such as fuchsia, red and orange.

“The colors are perfect for Dian’s light brown skin,” L’Oreal Paris Indonesia makeup artist Adi Adrian said.

The dresses that Dian wears will also be under the spotlight over the course of the week.

For her media interviews in Cannes, Dian will wear an off-shoulder cocktail dress by top Indonesian fashion designer Sebastian Gunawan.

“He [Sebastian] said that he was inspired by Audrey Hepburn’s dresses in the 1950s,” Dian said.

The A-line taffeta dress will be enhanced with a handwoven shawl from Bali.

On awards night, Dian will wear an evening gown by haute couture designer Eddy Betty.

“It’s such a privilege for me to design a dress for the red carpet moment at Cannes,” Eddy said. “I’m both anxious and thrilled. The dress has to be excellent. All eyes will be on it.”

Eddy’s creation was inspired by Indonesian dodotan, or a long piece of batik wrapped around the body and secured with a knot, usually worn during traditional Javanese ceremonies. His one-shoulder dress has ornate floral embellishments on the bodice and draperies cascading down the lower front of the skirt. It is embellished with French Chantilly lace in various hues of orange.

“I tie-dyed it myself,” Eddy said. “I think orange goes very well with Dian’s beautiful skin color.”

For the after-party, Dian will wear designer Didit Hediprasetyo’s silver long dress, which is made of handwoven songket from South Sumatra. “It’ll be very elegant,” Dian said.

Yet for Dian, her appearance at Cannes is about more than just looking good and scoring publicity.

“I see it as an opportunity to learn and expand my knowledge and experience in the film industry,” she said. “Hopefully, I can use [both] to contribute to the Indonesian film industry.”

Will Indonesia Replace India in the BRICs?

As India fails to deliver on its promise of growth, a smaller Asian country Indonesia, finds itself in a position to lure investors away from the third largest economy in the region with higher stock market returns, better fiscal management and lower inflation.

“Indonesia looks like it has hit the sweet spot, whereas India is nursing a headache from its latest boom,” says Frederic Neumann, Co-Head of Asian Economic Research at HSBC.

While the two economies aren’t similar in terms of size, with India’s population of 1.2 billion and Indonesia’s at 240 million, the countries share many similarities, leading to comparisons. Both have a burgeoning consumer base and are democracies with an investment grade rating.

India’s economy has hit a rough spot with the slowest pace of growth in three years with the government unable to deliver on economic reforms. On the other hand, Indonesia has won favor with investors over the past few years.

That’s leading Neumann and others to call for Indonesia to be included in the lineup of top global emerging markets. “The term BRICs really misses out on some of the key developments of our time. Indonesia has solid public finances, strong growth, a burgeoning consumer market, and plenty of resources to keep the economy afloat for many years,“ says Neumann.

On the other hand, India, according to Goldman Sachs’ Jim O’Neill, the man who coined the term in 2001, is the BRIC that has disappointed. Late last year O’Neill said that India’s poor record on productivity, foreign direct investment (FDI) and policy reform had made it the most disappointing among the four biggest developing economies – Brazil, Russia, India and China.

For example, India’s fiscal deficit target of 5.1 percent is wider than those of its BRIC peers. Its forecast deficit is more than four times Brazil’s estimated 2012 budget gap of 1.2 percent of output.

“It is difficult to see how India can turn around in the short term. It could in the next couple of years, but that is an eternity from investors’ point of view, ” says Neumann.

He adds that investors have already voted with their feet taking money out of India. The latest evidence of this was in the month of April when offshore investors withdrew some $403 million out of Indian equities and bonds, according to Reuters data.

While it is difficult to estimate how much of India’s loss has been Indonesia’s gain, market watchers say many investors have been increasingly looking at Indonesia as an alternative to India.

“To a large extent investor interest has moved to Indonesia,” Robert Prior-Wandesford, Director, Asian Economics at Credit Suisse told CNBC. “Indonesia’s equity market is hugely better than that of India and in part at the cost of India.”

While the Bombay Stock Exchange’s Sensex was the worst performing major global index in 2011 falling almost 25 percent, the Jakarta Composite Index[.JKSE  3945.68    -99.97  (-2.47%)   ]gained over three percent.

Besides delivering better returns, Indonesia is also catching up with India when it comes to economic growth. India’s gross domestic product (GDP) is expected to expand at just under 7 percent in the current fiscal year, which began April 1, while Indonesia is expected to deliver 6 to 7 percent growth over the next couple of years, say analysts.

Even on trade, Indonesia scores over India. According to brokerage CLSA’s latest forecast Indonesia’s current account deficit in 2012 will be just 0.8 percent of GDP, while India’s will come in at around 3.9 percent.

Rajeev Malik, Senior Economist at CLSA, says in Indonesia’s case, net Foreign Direct Investment (FDI) will offset the current account deficit. In India’s case, he points out, an estimated net FDI inflow of $15-20 billion will be well short of the current account deficit.

“They are doing better although they are not as big an economy as India,” he says.

Credit Suisse’s Wandesford says Indonesia reminds him of India three to four years ago, when there was a huge euphoria over the growth opportunity it offered foreign investors and companies. “In 2005-2008 India could do no wrong, now it is Indonesia.”

India, which was awarded an investment grade rating by Standard and Poor’s in 2007 is now under threat of losing it, with the ratings agency last month downgrading its credit outlook to negative. By contrast, both Fitch and Moody’s upgraded Indonesia to investment grade in December and January, respectively.

Size Matters

But despite the growing pessimism around India, most experts feel that it is not time yet to write off a country of a billion-plus people, if on nothing else than its sheer size.

Some argue that while there is a case for Indonesia to join the BRICs, it shouldn’t be at the cost of India as they both have different comparative advantages. While one is a commodity economy, the other is a services oriented one and an investor, for example, can’t completely replicate his menu of Indian stocks in Indonesia, say analysts.

“BRIC investors have a 20-year horizon and India will finally deliver in the long term,” says Neumann.

By CNBC’s Gauri Bhatia

Ranks 9 in the World

Indonesia takes no. 9 position on the list of major countries for direct foreign investment, below Vietnam and Mexico.

The data compiled via the United Nations Conference on Trade and Development (UNCTAD) survey announced by Director of Regional Cooperation of Investment Coordination Board (BKPM) Rizar Indomo Nazaroeddin.

In the survey conducted on 193 countries through out the period 2009-2012, Indonesia remains at no. 9, whereas Vietnam advances from no. 11 in the period 2009-2011 to no.8 in the period 2010-2012. Mexico jumps from no. 12 to no. 6, while China consistently maintains no. 1 position in the two consecutive periods.

Although Indonesia’s position is stagnant, for the period 2010-2012, it manages to beat Germany, Thailand, Australia, Japan, and Malaysia. Its position is further strengthened by investment grades embedded by other institutions in the survey.

According to Deputy Governor of Bank Indonesia Muliaman Hadad, Indonesia’s continued economic growth opens door for the country to develop further.

NUR ALFIYAH

(Source: Tempo Interaktif)

Menduniakan si Baret Merah

By : Ahmad Cholis Hamzah

Ketika bencana tsunami terjadi di Aceh, dunia terkejut karena besarnya bencana itu menyebabkan ratusan ribu orang Aceh meninggal dunia, dan bencana itu pula menerjang wilayah yang lebih luas dari Aceh, Thailand, Srilangka sampai Madagaskar di Afrika. Dunia juga kemudian bersimpati dan “bangga” dengan gambar-gambar tentara negara-negara sahabat yang ikut terlibat dalam operasi kemanusiaan di Aceh itu menggendong bayi atau anak kecil atau orang tua. Media dunia terutama dari negara-negara barat seakan-akan “bersatu” memuat gambar yang menyentuh kalbu itu. Sayangnya media Indonesia tidak ada yang bersatu atau “ngeh” untuk memuat gambar pasukan TNI kita yang juga melakukan operasi kemanusiaan yang sama.

Kejadian seperti itu berulang lagi pada saat musibah jatuhnya pesawat Rusia Shukoi Superjet 100 di Gunung Salak Bogor. Serpihan pesawat dan potongan tubuh korban berada di lereng gunung yang kemiringannya hampir 90 derajat dan berada di dasar jurang yang dalam. Tapi sangat mengagumkan pasukan TNI baik dari Kopassus, Marinir, Paskhas, dan Brimob dari kepolisian, tim SAR dari Basarnas serta para mahasiswa pencinta alam dan penduduk lokal berhasil mencapai daerah yang sulit di jangkau itu. Tim Rusia pun yang akhirnya ikut rombongan SAR ternyata mengakui sulitnya medan Gunung Salak dan malahan ada yang minta turun lagi ke daerah yang lebih datar.

Yang mengagumkan dan membanggakan lagi adalah tim kecil dari Kopassus yang ditugaskan untuk mencari black box di dasar jurang, dan akhirnya menembukan ELT atau Emergency Locator Transmitter. Ada informasi yang menyebutkan bahwa Tim ini diterjunkan dengan menggunakan tali, dan ketika mereka sampai di tengah-tengah jurang, ternyata talinya tidak mencukupi panjangnya, lalu mereka lapor pada komandannya, dan komandan mengatakan akan mengirim tali tambahan tapi satu hari lagi datangnya. Bisa di bayangkan pasukan elit itu menunggu tambahan tali sambil bergelantungan di medan yang gelap dan membahayakan itu.

Kopassus memang tangguh dalam tugas-tugas seperti itu, mereka memang dilatih dengan keras dan ada pendapat yang mengatakan bahwa satu orang prajurit Kopassus itu sama dengan 5 prajurit regular. Dan yang membanggakan lagi adalah Kopassus ini disejajarkan dengan pasukan elit Inggris SAS dan pasukan inteligen Israel Mosad. Bahkan pasukan elite AS tidak termasuk pada masuk pada jajran ini karena dianggap terlalu mengandalkan teknologi. Sementara Kopassus itu memang dilatih secara individu dan tim kecil yang tangguh.

Kopassus Angkatan Darat dengan baret merah darahnya dibentuk pada bulan April 1952 dengan nama yang berganti ganti, dari RPKAD –Resimen Para Komando Angkatan Darat, lalu Kopasandha – Komando Pasukan Sandi Yudha dan sekarang Kopassus atau Komando Pasukan Khusus. Tugas negara banyak yang berhasil di embannya.

Memang pada jaman Suharto, nama Kopassus mencadi tercoreng karena kasus-kasus hak azasi manusia; namun sekarang sejalan dengan reformasi di tubuh Angkatan Darat, Kopassus mulai bangkit lagi dan negara-negara di dunia termasuk negara-negara tetangga termasuk Australia masih mengakui bahwa Kopassus adalah pasukan elit Angkatan Darat yang tangguh.

Terlepas dengan pro kontra soal keterlibatan Kopassus di berbagai kasus HAM, namun ketangguhan, ke profesionalitasannya, dalam operasi kemanusiaan bencana jatuhnya pesawat Shukoi superjet 100 harus diliput media nasional dengan proporsional, agar masyarakat Indonesia makin mencintai Tentaranya sendiri. Apresiasi yang tingggi dari seluruh anak negeri ini harus ditujukan kepada prajurit –prajurit penjaga ibu pertiwi ini. Siapa lagi kalau bukan kita.

Alumni University of London, Universitas Airlangga Surabaya, dan dosen STIE PERBANAS Surabaya.

Welcome, Kamerad!

After being punished with extra UN sanctions for launching a long-range rocket, North Korea may now be turning to foreign investment from Singapore and Indonesia to boost its economy.

North Korea looks to Singapore, Indonesia for economy boost (Credit: ABC)
North Korea’s ceremonial leader, Kim Yong Nam, visited the Southeast Asian nations this week in what’s being called a bid to build economic partnerships with the countries.

Mr Kim, the President of the Presidium of North Korea’s Parliament, spent two days in Singapore where he visited a food factory and an electronics manufacturer.

Observers say North Korea may have used the trip to learn how to develop a successful growth model that does not threaten Pyongyang’s political power structure.

Others say, Singapore offers an attractive model to North Korea for attracting direct foreign investment.

Presenter: Bill Bainbridge

Speaker: Professor Zhi Zhiqun, visiting Senior Research Fellow at Singapore’s East Asian Institute

ZHU: I think Mr Kim is here trying to break up the isolation and sanctions imposed by western powers, especially the United States and Japan. So he’s trying to reach out to form partnerships with other countries.

BAINBRIDGE: And is that working with Singapore, I mean what kind of history do Singapore and North Korea have in terms of their trade relationship?

ZHU: My understanding is that Singapore already has some investment in North Korea, so does Indonesia. And I have to say that many of these Southeast Asian nations are less ideological and less critical of North Korea. So from a pure business perspective I think they see North Korea as a new frontier for investing, so it’s a good opportunity for many countries in the region.

BAINBRIDGE: Why do you think that is that they’re less as you put it, ideological and critical of North Korea? Why don’t they go along with the UN approach, the US approach to isolate North Korea and punish it for its threatening positions on nuclear armament?

ZHU: That’s a good point, I think in general these countries also support UN resolutions and support western countries approach to North Korea. However I don’t think and they completely agree with specific policies. For example basically western powers, especially the United States their approach to North Korea is based on sanctions and isolation and I think this kind of approach lacks creativity and is really morally deficient, because what kind of objective can these policies achieve? Well it’s the poor North Korean people who are suffering, the North Korean ruling elites in Pyongyang are not going to be affected by such an approach. So I think many countries in the region perhaps think differently from the United States and other western powers. So they may wish to try a different approach.

BAINBRIDGE: So is there evidence then on the other hand that engagement with North Korea by Singapore and Indonesia and other countries is acutally promoting more openness from North Korea?

ZHU: I think so, for example Indonesia and North Korea recently signed an agreement to exchange news, photos, tv footage, earlier Associated Press already opened a bureau in Pyongyang. So I think there are signs, there are indications that North Korea is moving positively towards integrating itself with the international community. And also I learnt that for example previously visitors to North Korea cannot take photos and cannot carry cell phones with them, and more recently such restrictions have been eased. So there are positive signs from North Korea, so I think such a development needs to be encouraged.

BAINBRIDGE: So what some people are suggesting is that North Korea wants to learn from Singapore’s economic model. Why would Singapore be an appealing model to the North Koreans?

ZHU: Well you remember before Kim Jong-il died China invited Kim Jong-il to visit two towns like Shanghai, Shenzhen. I think Kim Jong-il was probably very impressed. However China is such a big country, I think smaller nations in Southeast Asia are perhaps more relevant, and I think perhaps North Korea feels that Singapore especially as one of the four tigers has much to offer to North Korea, unlike China which is a totally different situation. So I believe that Singapore serves as a good model for North Korea, especially in terms of attracting foreign investment.

BAINBRIDGE: And what about Indonesia. Kim Yong Nam is in Indonesia now, what do you think he’ll gain from that trip?

ZHU: Indonesia is a different story. Indonesia and North Korea actually have had good relations since the 1950s. I think they established relations in the early 1960s. Indonesia offers a different model because Indonesia is also a nation rich in resources. And North Korea is in the same situation, North Korea actually has a lot of minerals and other resources. I think they can make a lot of money by exporting these resources and Indonesia definitely has much to offer in this regard.

BAINBRIDGE: And so perhaps a closer model for North Korea would be Singapore?

ZHU: Well I would say both Indonesia and Singapore can offer something to North Korea. And of course especially in terms of growth and investment. Perhaps Singapore offers a better model, a better approach, but I think North Korea can really learn a lot from many of these countries in the region, and it can also learn from China, although it’s on a much larger scale. So by and large I believe that all these countries in the region need to encourage North Korea, to help North Korea to integrate into the regional economy and that’s the proper approach I believe. Personally I don’t like, I don’t think the sanctions and the isolation preferred by western powers will work.

RadioAustralia.net.au

World Most Beautiful Countries. Yours?

When it comes to listing the most beautiful countries in the world, many may look to sun-drenched nations or tropical islands.

But it seems Twitter and Pinterest users have different ideas. In a competition to find the country with the most spectacular scenery a rather unusual entry has come out on top… Latvia.

India? Forget it :)

Southeast Asian nations are swallowing an outflow of money from India, as foreign investors lose patience with its policy paralysis and slowing growth and aim instead for more promising emerging markets such as Indonesia.

Corruption scandals and high inflation have added to India’s woes, which have seen growth slow to a three-year low while the fiscal deficit widened to 5.9 percent of GDP in the last financial year.

“India was sold on the promise of high growth which simply hasn’t panned out over the past four years,” said Gautam Prakash, founder of U.S. based hedge fund Monsoon Capital.

Foreign portfolio flows into Indian stocks have dropped 99 percent to just 5.17 billion rupees ($96.5 million) since a March budget that largely disappointed investors.

Among the most significant developments from the shift has been the direction in which money is headed – with a big chunk flowing to Jakarta and other Southeast Asian capitals.

Two provisions put forward in the budget to tax indirect investments and combat tax evasion were the last straw for some global mutual funds, prompting an acceleration of money leaving India.

While the provisions were later put on ice, the prospect that such a tax could be proposed in India was enough for some investors to send their Asia-allocated money further east.

“You’re seeing a situation where the ‘I’ in BRIC is being replaced by Indonesia,” said Tim Condon, head of research and strategy for Asia at ING.

LEFT OUT

An emerging market brochure distributed by Franklin Templeton last month had data on India missing from a world map. From a global leader in emerging market investing, led by omnipresent guru Mark Mobius, that omission was telling.

India exposure in Asia’s biggest equity fund, the $18 billion Templeton Asian Growth fund, dropped to 16 percent of its assets at the end of March from nearly 20 percent a year ago, while exposure to Association of Southeast Asian Nations countries rose to 35 percent from 31 percent during the period.

An ASEAN-focused equity fund launched by Daiwa Asset Management started with about $366 million in February and has since grown to manage about $430 million, while Fidelity Funds-ASEAN has seen a net inflow of nearly $250 million in the last year.

The bigger ASEAN markets do not necessarily offer a compelling case on valuation grounds.

“Generally we are more negative on India than we are positive on the alternatives, such as Indonesia and the Philippines where we feel the markets have perhaps run ahead of themselves,” said David Baran, co-founder of Tokyo-based hedge fund Symphony Financial Partners.

“However, the ASEAN alternatives do have more positives and less negatives than India and we think that foreign investment outflows from India into the ASEAN alternatives are highly likely to increase if anything.”

Indian shares trade at price to book value of 1.9 times, higher than 1.4 times for Asia Pacific shares as a whole but less than 3.1 times for Indonesia, 2.2 times for Thailand and 2.5 times for Philippines, according to data from Thomson Reuters StarMine.

The trend, nonetheless, is clear as money managers shift away from India, at least for the short-term, towards markets that offer the same favorable demographics and growth potential that had previously drawn investors to Delhi and Mumbai.

BETTING ON ASEAN

Funds from firms such as Aberdeen, Matthews and T.Rowe with mandates to bet in Asia invested a smaller percentage of their assets in India at the end of March compared with the year-ago period and more in Indonesia and other Southeast Asian countries than they did a year ago.

Part of the drop is due to a fall in the value of holdings, but fund flow data tracked by Lipper shows mutual fund clients are responding as well, giving more ammunition to funds betting on Southeast Asia and less to those investing in India.

Investors pulled out nearly $480 million from offshore India dedicated funds in April, increasing the 12-month cumulative net outflows to about $4.1 billion, according to data from Lipper.

By comparison, funds investing in Southeast Asia have seen net inflows of about $900 million in the year ending April.

The gap between the total assets under offshore India funds and that of Southeast Asia fell to a three-year low of about $13.5 billion in April, indicating investors were buying into a region that is home to nearly 600 million people.

Indonesia focused bond funds are in favor too, with eight such funds collecting a cumulative $355 million in the year ending April. HSBC Indonesia Bond Open received $200 million alone.

“We are definitely seeing more interest in ASEAN,” said Matt Pecot, head of Credit Suisse’s prime broking unit in the Asia Pacific.

Net exposure to India in Asia-focused hedge fund portfolios fell to 18.7 percent in April from 32.5 percent in January 2011, according to data compiled by Credit Suisse based on their client portfolios. The same measure for Indonesia surged to 51.8 percent in April from 24.7 percent in January 2011.

Net exposure refers to the difference between a hedge fund’s long positions and short positions. A higher net exposure means funds are expecting the stock market to rise.

BRIC HITS WALL

Ten years ago, Chairman of Goldman Sachs Asset Management Jim O’Neill, then the bank’s chief economist, combined the emerging market growth stories of Brazil, Russia, India and China to coin the famous “BRIC” moniker. O’Neill recently called India the “biggest disappointment” of the BRIC nations.

“India was a 9 to 10 percent growth economy when the BRICs were put together and now it’s slowing. Indonesia was a 4 to 5 percent growth economy and it’s moving in the other direction,” ING’s Condon said.

The top-three BRIC mutual funds by assets invested a smaller percentage of their assets into India at the end of March than they did a year back, according to data from Lipper. They are also underweight compared with their benchmark, meaning they do not expect India to contribute to portfolio outperformance.

Templeton BRIC fund had 11.7 percent of its assets in India, its lowest since June 2009.

“India is getting trapped in that high fiscal deficit, high current account deficit situation and there is no easy way out of that unless it takes the tough steps,” said Binay Chandgothia, portfolio manager at Principal Global Investors.

Indonesia and the Philippines, meanwhile, have neither current account nor significant budget deficits to worry about, although they do share some of India’s problems such as their own fuel and food subsidies, Symphony Financial Partners’ Baran said.

With combined GDP of $2 trillion, 10-member ASEAN is angling for foreign investment. Ranging from resource-rich Indonesia to impoverished Laos and financial centre Singapore, ASEAN is planning a union by 2015 to allow for free flow of goods, capital, services and labor.

“As far as stock prices go, foreigners own approximately 40 percent of the free float of the Indian market,” Baran said.

“It will not take much of an exodus for this to have a significant impact on the market and there are clearly plenty of alternatives in ASEAN.” ($1 = 53.5550 Indian rupees)

Reuters

(Additional reporting by Abhishek Vishnoi in MUMBAI; Editing by Michael Flaherty and Alex Richardson)

Airbus A400 for Indonesia. Anyone?

Airbus Military is confident about the A400M’s prospects in Indonesia and says it is open to collaborating with Dirgantara Indonesia on work share if Jakarta buys the airlifter.

“If they buy the aircraft, we’ll discuss with local industry how they can participate,” says Ignacio Alonso, Airbus Military’s senior vice-president for commercial, strategy, and industrial relations in Asia. “It’s too soon to say how they could collaborate, but we are open to discussing collaboration.”

“The A400M fits their current and future needs very well, both for military and humanitarian relief,” he adds.

He was speaking after the conclusion of the A400M’s Asian debut tour in April. The trip saw aircraft MSN4 visit Malaysia, Indonesia, and Thailand. Malaysia is the first non-European nation to order the aircraft, with an order for four. During the Thailand visit, the Thai defence minister flew on the aircraft from Chiang Mai to Bangkok.

Alonso also provided more details about Indonesia’s nine aircraft C-295 purchase that was announced at the Singapore air show in February. The aircraft will be operated by the Indonesian air force and will be designated CN-295 in Indonesian service. The Indonesian government is still arranging for the financing of the aircraft and Alonso expects the first two to be delivered this year.

When it announced the CN-295 deal in February, Airbus Military said Dirgantara Indonesia will manufacture the tail empennage as well as the rear fuselage and fuselage panels. The final assembly line for the last two aircraft will be located in Indonesia and Dirgantara Indonesia will also establish a service centre.

www.flightglobal.com