Transformation of the Financial Sector in Indonesia

Introduction : The source and deployment of finance are central issues in economic development. Since 1966, when the Soeharto Administration was inaugurated, Indonesian economic development has relied on funds in the form of aid from international organizations and foreign countries. After the 1990s, a further abundant inflow of capital sustained a rapid economic development. Foreign funding was the basis of Indonesian economic growth. This paper will describe the mechanism for allocating funds in the Indonesian economy. It will identify the problems this mechanism generated in the Indonesian experience, and it will attempt to explain why there was a collapse of the financial system in the wake of the Asian Currency Crisis of 1997. History of the Indonesian Financial system The year 1966 saw the emergence of commercial banks in Indonesia. It can be said that before 1966 a financial system hardly existed, a fact commonly attributed to economic disruptions like the consecutive runs of fiscal deficit and hyperinflation under the Soekarno Administration. After 1996, with the inauguration of Soeharto, a regulatory system of financial legislation, e.g. central banking law and banking regulation, was introduced and implemented, and the banking sector that is the basis of the current financial system in Indonesia was built up. 　　　The Indonesian financial structure was significantly altered at the first financial reform of 1983. Between 1966 and 1982, the banking sector consisted of Bank Indonesia (the Central Bank) and the state-owned banks. There was also a system for distributing the abundant public revenue derived from the soaring oil price of the 1970s. The public finance distribution function, incorporated in Indonesian financial system, changed after the successive financial reforms of 1983 and 1988, when there was a move away from the monopoly-market style dominated by state-owned banks (which was a system of public finance distribution that operated at the discretion of the government) towards a modern market mechanism. The five phases of development The Indonesian financial system developed in five phases between 1966 and the present time. The first period (1966-72) was its formative period, the second (1973-82) its policy based finance period under soaring oil prices, the third (1983-91) its financial-reform period, the fourth (1992-97) its period of expansion, and the fifth (1998-) its period of financial restructuring. The first section of this paper summarizes the financial policies operative during each of the periods identified above. In the second section changes to the financial sector in response to policies are examined, and an analysis of these changes shows that an important development of the financial sector occurred during the financial reform period. In the third section the focus of analysis shifts from the general financial sector to particular commercial banks’ performances. In the third section changes in commercial banks’ lending and fund-raising behaviour after the 1990s are analysed by comparing several banking groups in terms of their ownership and foundation time. The last section summarizes the foregoing analyses and examines the problems that remain in the Indonesian financial sector, which is still undergoing restructuring.

Space-time Measurements of Oceanic Sea States

Stereo video techniques are effective for estimating the space–time wave dynamics over an area of the ocean. Indeed, a stereo camera view allows retrieval of both spatial and temporal data whose statistical content is richer than that of time series data retrieved from point wave probes. We present an application of the Wave Acquisition Stereo System (WASS) for the analysis of offshore video measurements of gravity waves in the Northern Adriatic Sea and near the southern seashore of the Crimean peninsula, in the Black Sea. We use classical epipolar techniques to reconstruct the sea surface from the stereo pairs sequentially in time, viz. a sequence of spatial snapshots. We also present a variational approach that exploits the entire data image set providing a global space–time imaging of the sea surface, viz. simultaneous reconstruction of several spatial snapshots of the surface in order to guarantee continuity of the sea surface both in space and time. Analysis of the WASS measurements show that the sea surface can be accurately estimated in space and time together, yielding associated directional spectra and wave statistics at a point in time that agrees well with probabilistic models. In particular, WASS stereo imaging is able to capture typical features of the wave surface, especially the crest-to-trough asymmetry due to second order nonlinearities, and the observed shape of large waves are fairly described by theoretical models based on the theory of quasi-determinism (Boccotti, 2000). Further, we investigate space–time extremes of the observed stationary sea states, viz. the largest surface wave heights expected over a given area during the sea state duration. The WASS analysis provides the first experimental proof that a space–time extreme is generally larger than that observed in time via point measurements, in agreement with the predictions based on stochastic theories for global maxima of Gaussian fields.

Planktonic foraminiferal abundances and stable isotope ratios in middle Miocene sediments of the North Atlantic and the southwestern Pacific

A three-fold expansion of the Antarctic ice sheet at 13.60, 12.82, and 11.60 Ma has been inferred from delta18O maxima analyzed in planktonic and benthic foraminiferal tests, although accompanying changes in sea surface temperature have not been detailed. We present estimated changes in middle Miocene surface-water temperatures based on analysis of delta18O in planktonic foraminifera collected at mid-latitude Deep Sea Drilling Project sites in the North Atlantic and South Pacific oceans. We also identify periods of ice-sheet growth based on comparisons of benthic and planktonic foraminiferal delta18O values. Our results indicate: (1) a distinct cooling of the sea surface from 13.6 to 13.5 Ma immediately following a peak in ice volume at 13.6 Ma, (2) a cooling of the sea surface during a period of increasing ice volume from 13.2 to 13.0 Ma, and (3) a development of the Antarctic ice sheet during a period of cooling of the sea surface centered at 11.6 Ma.

Annotated record of the detailed examination of Mn deposits from R/V Atlantis - Cruise 151 (Dec. 1947) in the Atlantic Ocean

One of the objectives of WHOI Atlantis Cruise 151, covering the period from 7 December 1947 to 18 June 1948, was to obtain as complete a sampling of the sea bottom of the Meditterranean and Aegean Seas as was compatible with the remainder of the scientific program. It was furthermore planned to make concurrent bottom photographs as a means for studying the correlation between bottom sediments and the morphology of the sea floor. The photographs also held the possibility of determining the presence of bottom fauna. The underwater camera used for this work was loaned to us by Dr. Maurice Ewing of Columbia University. As it was fitted with a one foot long coring tube at the base of its pole a majority of the bottom samples were obtained by the camera itself. On the way to Gibraltar, several bottom photos were taken in the Atlantic ocean. One of them was the deepest underwater photograph ever taken at the tima (3026 fathoms) showing a cluster of objects, some as much as 5 inches across on a clay bottom. These appeared to be manganese nodules, judging from their rounded and bulbous shape, especially the potato-like form of some of them. A core sample obtained at the same spot with a corer attached to the camera stand contained abundant manganese grains.

Program of the United States Government in atmospheric radioactivity /

"November 7, 1960."

Report of the Commissioner for ... /

At head of title: Part II-part XXIX.

Hero tales of the far North,

A knight errant of the sea [Tordenakjold] - Hans Egede, the apostle to Greenland. - Gustav Vasa, the father of Sweden. - Absalon, warrior bishop of the North. - King Valdemar, and the story of the Dannebrog. - How the ghost of the heath was laid. - King Christian IV. - Gustav Adolf, the snow-king. - King and sailor, heroes of Copenhagen. - The trooper who won a war alone [Jens Kofoed] - Carl Linné, king of the flowers. - Niels Finsen, the wolfslayer.

Chronicles of the reigns of Stephen, Henry II., and Richard I.

Vol. 4 has imprint: London, Printed for H. M. Stationery off., by Eyre and Spottiswoode.

Views from Hamburg : the Juno Trader case or how to make sense of the coastal State's rights in the light of its duty of prompt release

Special edition: The United Nations and international legal order - the case of the Juno Trader - on 18 December 2004, the International Tribunal for the Law of the Sea ordered the prompt release of a refrigerated cargo vessel and its cargo for fisheries violations in an exclusive economic zone - Tribunal unanimously decided that the vessel and cargo be released, upon posting of a bond in the form of a bank guarantee - crew should be free to leave without conditions - in this case, on prompt release, the Tribunal made valuable contributions to existing case law on the issue - shows that specialised tribunals may perform a decentralised application of the international rule of law - crystallises international fundamental standards of fairness and human rights.

Objective grading of the anterior eye

Purpose. To convert objective image analysis of anterior ocular surfaces into recognisable clinical grades, in order to provide a more sensitive and reliable equivalent to current subjective grading methods; a prospective, randomized study correlating clinical grading with digital image assessment. Methods. The possible range of clinical presentations Of bulbar and palpebral hyperaemia, palpebral roughness and corneal staining were represented by 4 sets of 10 images. The images were displayed in random order and graded by 50 clinicians using both subjective CCLRU and Efron grading scales. Previously validated objective image analysis was performed 3 times oil each of the 40 images. Digital measures included edge-detection and relative-coloration components. Step-wise regression analysis determined correlations between the average subjective grade and the objective image analysis measures. Results. Average subjective grades Could be predicted by a combination of the objective image analysis components. These digital ``grades'' accounted for between 69%, (for Efron scale-graded palpebral redness) and 98% (for Efron scale-graded bulbar hyperaemia) of the subjective variance. Conclusions. The results indicate that clinicians may use a combination of vessel areas and overall hue in their judgment of clinical severity for certain conditions. Objective grading call take these aspects into account, and be used to predict an average ``objective grade'' to be used by a clinician in describing the anterior eye. These measures are more sensitive and reliable than subjective grading while still utilizing familiar terminology, and can be applied in research or practice to improve the detection, and monitoring of ocular surface changes.

Annotated record of the detailed examination of Mn nodules recovered from the VA04 expedition (R/V Valdivia) in the Pacific Ocean

Twenty-four manganese nodules from the surface of the sea floor and fifteen buried nodules were studied. With three exceptions, the nodules were collected from the area covered by Valdivia Cruise VA 04 some 1200 nautical miles southeast of Hawaii. Age determinations were made using the ionium method. In order to get a true reproduction of the activity distribution in the nodules, they were cut in half and placed for one month on nuclear emulsion plates to determine the alpha-activity of the ionium and its daughter products. Special methods of counting the alpha-tracks resolution to depth intervals of 0.125 mm. For the first time it was possible to resolve zones of rapid growth (impulse growth) with growth rates, s > 50 mm/106 yr and interruptions in growth. With few exceptions the average rate of growth of all nodules was surprisingly uniform at 4-9 mm/10 yr. No growth could be recognized radioactively in the buried nodules. One exceptional nodule has had recent impulse growth and, in the material formed, the ionium is not yet in equilibrium with its daughter products. Individual layers in one nodule from the Indian Ocean could be dated and an average time interval of t = 2600±400 yr was necessary to form one layer. The alternation between iron and manganese-rich parts of the nodules was made visible by colour differences resulting from special treatment of cut surfaces with HCl vapour. The zones of slow growth of one nodule are relatively enriched in iron. Earlier attempts to find paleomagnetic reversals in manganese nodules have been continued. Despite considerable improvement in areal resolution, reversals were not detected in the nodules studied. Comparisons of the surface structure, microstructure in section and the radiometric dating show that there are erosion surfaces and growth surfaces on the outer surfaces of the manganese nodules. The formation of cracks in the nodules was studied in particular. The model of age-dependent nodule shrinkage and cracking surprisingly indicates that the nodules break after exceeding a certain age and/or size. Consequently, the breaking apart of manganese nodules is a continuous process not of catastrophic or discontinuous origin. The microstructure of the nodules exhibits differences in the mechanism of accretion and accretion rate of material, shortly referred to as accretion form. Thus non-directional growth inside the nodules as well as a directional growth may be observed. Those nodules with large accretion forms have grown faster than smaller ones. Consequently, parallel layers indicate slow growth. The upper surfaces of the nodules, protruding into the bottom water appear to be more prone to growth disturbances than the lower surfaces, immersed in the sediment. Features of some nodules show, that as they develop, they neither turned nor rolled. Yet unknown is the mechanism that keeps the nodules at the surface during continuous sedimentation. All in all, the nodules remain the objects of their own distinctive problems. The hope of using them as a kind of history book still seems to be very remote.