- Title: VARIOUS: ASIA FEELS THE IMPACT OF RECORD OIL PRICES.
- Date: 30th August 2005
- Summary: (ASIA) JAKARTA, INDONESIA (AUGUST 30, 2005) (REUTERS) 1. VARIOUS: TRADING FLOOR AT JAKARTA STOCK EXCHANGE. 0.14 2. CU: SCREEN SHOWING SHARE PRICES OF LISTED COMPANIES. 0.20 (BN08) JAKARTA, INDONESIA (AUGUST 30, 2005) (REUTERS) 3. WS/EXTERIOR: OF PRESIDENTIAL PALACE. 0.23 4. TRACK: INDONESIAN PRESIDENT SUSILO BAMBANG YUDHOYONO ENTERING NEWS CONFERENCE. 0.30 5. SCU: (SOUNDBITE) (Bahasa Indonesia) INDONESIAN PRESIDENT SUSILO BAMBANG YUDHOYONO, SAYING "I consider this current problem to be quite a serious one, even though it does not mean that there is no way out or that there is no solution to be taken. I believe we will find the solution and proper ways to tackle this problem." 0.59 (ASIA) JAKARTA, INDONESIA (AUGUST 30, 2005) (REUTERS) 6. SCU: WORKER AT FOREIGN CURRENCY TRADING COMPANY COUNTING RUPIAH BILLS ON A MACHINE. 1.02 7. CU: RUPIAH BILLS BEING COUNTED BY MACHINE. 1.10 8. CU: EMPLOYEE COUNTING U.S. DOLLAR BILLS. 1.15 9. CU: EXCHANGE RATES ON BOARD. 1.19 10. CU: CLOSE-UP OF U.S. DOLLAR RATES AGAINST RUPIAH. 1.23 (BN08) JAKARTA, INDONESIA (AUGUST 30, 2005) (REUTERS) 11. SCU: (SOUNDBITE) (Bahasa Indonesia) INDONESIAN PRESIDENT SUSILO BAMBANG YUDHOYONO, SAYING: "The truth is that our current economic condition is very different from what happened with our economy in 1998. It is so important to make sure that no one in this country believes so." 1.52 (ASIA) BANGKOK, THAILAND (AUGUST 26, 2005) (REUTERS) 12. VARIOUS: WORKERS WORKING AT THAI SUMMIT CAR PART FACTORY. (5 SHOTS) 2.20 13. LAS: THAI SUMMIT EXECUTIVE VICE PRESIDENT, THANATHORN JUANGROONGRUANGKIT, SITTING. 2.24 14. SCU: (SOUNDBITE) (English) THANATHORN JUANGROONGRUANGKIT, SAYING: "Oil prices, raw material prices, so all these costs has eaten up our profit margin. We have lost somewhere around 5 per cent of our profit margin due to the higher cost. In terms of, in 5 percent, in business is significant." 2.44 15. VARIOUS: OF BANGKOK TRAFFIC. (3 SHOTS) 3.00 16. MV: ANALYST SUPAVUD SAICHEUA FROM PHATRA SECURITIES PUBLIC COMPANY LIMITED AT DESK. 3.04 17. CU: OF COMPUTER. 3.07 18. SCU: (SOUNDBITE) (English) SUPAVUD SAICHEUA SAYING: "Asking people to conserve works in the short term, but then you sort of forget about it. The most effective mechanism for conservation is higher prices. That will get really, hit the people's pocket books and they'll start to conserve." 3.22 (ASIA) BULACAN, PROVINCE, PHILIPPINES (AUGUST 26, 2005) (REUTERS) 19. VARIOUS: OF FARMERS PLANTING RICE. (3 SHOTS) 3.39 20. CU: (SOUNDBITE) (Filipino) FARMER REYNALDO MATEO SAYING: "Our carabaos have all died because of the pesticides we have been using for years. We are forced to use modern farming machines. You know those things will not function if there is no fuel. What if fuel becomes so expensive? How do you expect the farmer to cope?" 4.04 21. WS/MV: OF FARMERS WORKING THE LAND. (2 SHOTS) 4.14 Initials Script is copyright Reuters Limited. All rights reserved
- Embargoed: 14th September 2005 13:00
- Location: JAKARTA, INDONESIA / BANGKOK, THAILAND / BULACAN, PROVINCE, PHILIPPINES
- Country: Philippines Thailand Indonesia
- Reuters ID: LVA5POYTQ603BGJU08HMWMEBJMJN
- Story Text: Asia feels impact of record oil prices; Indonesia forced to tackle currency crisis as Thailand absorbs proft losses.
Indonesia's rupiah plunged on Tuesday (August 30, 2005) with stock and bond investors scared off record oil prices.
The rupiah fell to 11,750 to the U.S. dollar, having lost 14 per cent
of its value this year. Oil prices were just over 68 U.S. dollars and 80
cents, worsening Indonesia's balance of payments and increasing inflation
At a hastily convened news conference, Indonesia's President Susilo
Bambang Yudhoyono sought to ease fears the economy was spiralling out of
"I consider this current problem to be quite a serious one, even
though it does not mean that there is no way out or that there is no solution
to be taken. I believe we will find the solution and proper ways to tackle
this problem," Yudhoyono said.
The budgetary crisis in the country has been provoked by a surging fuel
subsidy bill, which saw the country's central bank hike its interest rates to
stem capital flight.
But traders reported limited spillover selling in other emerging
markets, despite echoes of the 1997-98 Asian financial crisis, as Indonesian
In Thailand, southeast Asia's second largest economy, big businesses
are complaining about slashed profits as production costs increase and
consumers tighten spending.
Like many business leaders in the region that are not protected by
government subsidies, Thai Summit's Executive Vice President, Thanathorn
Jungroongruangkit, says his company
is being forced to absorb the fall out from the higher prices.
"Oil prices, raw material prices, so all these costs has eaten up
our profit margin. We have lost somewhere around 5 per cent of our profit
margin due to the higher cost. In terms of, in 5 percent in business, is
significant," he said.
Thai Summit is not alone. Thailand's $163 billion economy is facing its
slowest growth in four years because of the impact of oil.
The Thai government is now trying to reign in the cost of oil by asking
companies to curb overseas purchases of crude oil to help reduce the country's
import bill. But business leaders say this is only a band-aid solution, as in
the long term they are faced with fierce competition from China.
Many sectors are now calling on the Thai government to join Malaysia
and Indonesia in subsidising the cost of oil, but analysts are pulling in the
"Asking people to conserve works in the short term but then you
sort of forget about it. The most effective mechanism for conservation is
higher prices. That will get really, hit the people's pocket books and they'll
start to conserve," said Supavud Saicheua (PRON: SOUP- PA-WUT SAI-CH-A),
from Phatra Securities in Bangkok.
Economists warn the middle class and poor communities will be the
hardest hit, especially those relying on the agricultural industry for their
In the Philippines, already-struggling farmers face a grim future.
Forced to modernise decades ago and rent expensive machinery, many
farmers say they can no longer afford the fuel to run them.
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