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Newmont Mining Corp. and Sumitomo Corp. were ordered by an international arbitration panel to reduce their ownership in mining firm PT Newmont Nusa Tenggara from a combined 80% to 49% by next year. A joint venture composed of investment firm PT Multicapital Indonesia and three Indonesian regional governments plan to buy a 10% stake in Newmont Nusa for about $400 million.

This article reports that PT Multicapital Indonesia, an investment company linked to Indonesia's powerful Bakrie family, is planning to join with three local governments to buy a 10% stake in PT Newmont Nusa Tenggara, a company that operates a copper and gold mine on the Sumbawa island. PT Newmount Nusa Tenggara is owned by Newmont Mining Corp. and Sumitomo Corp., which have been ordered by an international arbitration panel to sell the shares.

This article predicts that Indonesian rupiah will continue its strengthening trend in the foreign exchange market. Bank of Indonesia governor Boediono shares the optimism of analysts and market participants. The strengthening of the rupiah is a turnaround after taking a battering for much of 2008 and the first quarter of 2009 losing almost 8% of its value in the first quarter.

The article reports on the expected increase in interest rate in Indonesia as a higher-than-expected inflation was announced. According to the Indonesian Central Statistics Agency, the consumer-price index for September 2008 was 12.14% higher than a year earlier and 0.97% above the August level. The demand for food and housing items during the festive month of Ramadan were said to be the causes of the price increases.

The article reports that Bank Indonesia has increased the interest rate to 9.25% due to continuous rise in inflation. It has been the fifth quarter-point addition since May 2008. While the inflationary demands from energy, food and commodities are softening, the overall inflation is anticipated to reach 11.5% to 12.5% in December 2008 against 6.59% in 2007. However, Bank Governor Boediono reassures that inflation is his primary focus.

The article discusses the results of the first Indonesian government auction of the Islamic equivalent bond sukuk that sold 4.7 trillion rupiah. According to bankers close to the deal, the sale revealed that seven-year sukuk were sold at yields of 11.8% and 10-year sukuk at 11.95%, while seven-year government bonds yielded at 11.93% and 10-year bonds yielded at 12.02% on August 22, 2008.

The article reports on the acquittal of Newmont Mining Corp. and senior executive Richard Ness from charges of polluting a bay near the village of Buyat in Indonesia. Judge Ridwan Damanik claimed that charges against the company and Ness cannot be proven. Prosecutors said that they will appeal the decision.

The article reports on the risks faced by the coal industry of Indonesia in relation to restrictive laws and perceived political risks in the country.

The article reports on the concerns arising from the decision of Malaysia to replace Hassan Marican with Shamsul Azhar Abbas as chief executive officer (CEO) of the national oil company Petroliam Nasional Bhd.

The article offers new briefs related to economics in Asia.

This article states that law enforcement authorities in Indonesia have intensified their search for Noordin Mohamed Top, an alleged Malaysian terrorists who worked with Jemaah Islamiyah Islamist group and the prime suspected mastermind of the suicide bombing of JW Marriott and Ritz-Carlton hotels in Jakarta that killed at least nine people and wounded several others. Authorities have raided the house of Noordin's father-in-law after the suicide bombing attack.