02/07/2014

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:00:00. > :00:16.Now on BBC News, all the latest business news live from Singapore.

:00:17. > :00:22.Indonesia's Finance Minister tells the BBC their economy needs to

:00:23. > :00:28.attract more foreign investors. Carving a future. A Japanese

:00:29. > :00:40.craftsmen finds new ways to keep his family business alive. `` craftsman.

:00:41. > :00:44.Welcome to the programme. Some investors have become wary of

:00:45. > :00:50.Indonesia after it. One of the world's gradual five economies. The

:00:51. > :00:56.economy is one of the key issues for Indonesians who will vote in a

:00:57. > :01:23.general election in around a week. Gross has become a top priority the

:01:24. > :01:28.government there. `` growth. Indonesia has become a middle income

:01:29. > :01:31.country in the past decade. It is a notable achievement, but recently

:01:32. > :01:45.growth has begun to slow. Will they begin to go into a virtuous circle

:01:46. > :01:48.or will it be a vicious cycle? The country went into a virtuous circle

:01:49. > :01:52.when prices skyrocketed ten years ago. Foreign money brought funds

:01:53. > :01:55.that boosted growth. That meant there was more money for investment.

:01:56. > :02:12.Indonesia was in a virtuous circle of growth and investment. Will the

:02:13. > :02:14.end of the commodity boom mean that Indonesia could fall into a vicious

:02:15. > :02:24.circle, where lower investment leads to slower growth and less income?

:02:25. > :02:27.But if the country could attract investment into new areas, like

:02:28. > :02:30.consumer goods to service its large population, that could launch

:02:31. > :02:38.Indonesia into a new cycle of growth and prosperity. While in Jakarta,

:02:39. > :02:50.our correspondent also caught up with the Foreign Minister of

:02:51. > :02:58.Indonesia. I don't think this country can grow by 7% without

:02:59. > :03:05.foreign investment. The only way to make sure this country grows by 7%

:03:06. > :03:11.is by opening to foreign capital and foreign investment. The question is

:03:12. > :03:22.why we have to grow by 7%. That is the only way we can create jobs and

:03:23. > :03:29.reduce poverty. There is frustration over corruption and the amount of

:03:30. > :03:34.money being spent. I think that it is important to look at the

:03:35. > :03:42.situation of the previous government. Let me ask you a

:03:43. > :03:49.question. Do you think that the corruption under that government was

:03:50. > :03:52.eradicated? No? Of course not. But how did the country grow? How were

:03:53. > :04:01.they able to build and infrastructure? It is not about

:04:02. > :04:07.corruption but certainty. In the past, we were dealing with one

:04:08. > :04:14.single family and everything was settled from the top to the bottom.

:04:15. > :04:19.But in this democratic setting, there is fragmentation at the top.

:04:20. > :04:24.That means we have to talk from central government to local

:04:25. > :04:32.government, so there is more uncertainty. There is something

:04:33. > :04:42.worse than organised corruption and it is unorganised corruption. What

:04:43. > :04:46.about the resources boom? If Indonesia continues with this

:04:47. > :04:56.trend, 60% of our exports will collapse. In other business news, a

:04:57. > :05:03.Japanese drugs giant is expected to face charges for data manipulation.

:05:04. > :05:14.The companies alleged to have provided false data to retailers to

:05:15. > :05:21.push its products. Google has bought a free online music streaming

:05:22. > :05:26.service. The application creates playlists based on the move of its

:05:27. > :05:36.users. Reports value the deal at around $15 million. Australia logged

:05:37. > :05:44.a $2 million trade deficit this quarter because of a slow in trade

:05:45. > :05:53.to China. The Australian dollar is now worth more than 94 cents in

:05:54. > :06:05.American currency. Some say it may regain parity or exceed the value of

:06:06. > :06:09.the US dollar later this year. There is still a bit of drag on the

:06:10. > :06:14.domestic economy. The Reserve Bank yesterday made the case that the

:06:15. > :06:19.economy was still a bit weaker than expected. For the Australian dollar,

:06:20. > :06:25.we think the most important factor is the US dollar, and strength in

:06:26. > :06:33.the US dollar is something we are looking for in the next few years.

:06:34. > :06:40.We see the Australian dollar in the immediate term as in the mid` 80s as

:06:41. > :06:47.opposed to parity. Throughout history, businesses have been handed

:06:48. > :06:51.down through the generations, sometimes staying in the same family

:06:52. > :06:56.for hundreds of years. But how do traditional crafts survive? We went

:06:57. > :07:08.to meet the last of a long line of craftsmen in Japan. Have a guess

:07:09. > :07:16.what he is making. Whatever you have guessed, I'm pretty sure it is

:07:17. > :07:23.wrong. These strips of wood and blue will eventually become part of a

:07:24. > :07:28.bicycle. `` wood and glue. That is right, a wooden bicycle. For over

:07:29. > :07:32.200 years, his family have been master boatbuilders. In a nearby

:07:33. > :07:39.dock, he still has the first one he ever made. He started building her

:07:40. > :07:47.when he was just 13. It took him five years. How on earth did he get

:07:48. > :08:04.from here to making bicycles? I can make a bicycle wheel the same way.

:08:05. > :08:08.Some European people have been asking for a wheel that is exactly

:08:09. > :08:20.round. Seven years ago, he built this, a racing bike made entirely of

:08:21. > :08:28.mahogany. It is a rather strange feeling to be riding and $80,000

:08:29. > :08:34.mahogany bicycle. You would not think it, this being wood, but it is

:08:35. > :08:40.astonishingly light, just seven kilograms, which is the same as a

:08:41. > :08:44.carbon bikes. He only made his first bicycle to the show off his

:08:45. > :08:51.woodworking skills, but then he took it to a European bike show. I was so

:08:52. > :09:02.surprised how many people tried to ride. They asked me to make it. On

:09:03. > :09:12.the first day, I received three orders. I was very surprised. The

:09:13. > :09:21.price was very high but the client said, yes, the price is high, but

:09:22. > :09:30.the quality is very high. They had never seen such a high`performance

:09:31. > :09:38.wooden bike. This man is a craftsmen who takes immense pride in his work.

:09:39. > :09:41.`` a craftsman. He will make only three bikes this year. If you order

:09:42. > :09:47.one now, you would have to wait until 2018 to get it. But his

:09:48. > :09:50.daughters do not want to do this. When he retires, all of his

:09:51. > :09:58.knowledge and skills could be lost forever.

:09:59. > :10:04.Before we go, here is a story for those who like to invest in a good

:10:05. > :10:14.night's sleep. One artist has sold her unmade bed complete with empty

:10:15. > :10:21.vodka bottles and cigarette ash trays for millions of dollars. My

:10:22. > :10:26.bed certainly doesn't look like that and it does not cost that much

:10:27. > :10:33.either. Thank you for joining us. Don't forget, you can follow us on

:10:34. > :10:42.Twitter. All of the sport is coming up next with the latest in the World

:10:43. > :10:47.Cup. This is BBC News. The headlines: Former French president,

:10:48. > :10:50.Nicolas Sarkozy, has appeared in court. He is under investigation

:10:51. > :10:54.over claims his election campaign was funded illegally.

:10:55. > :10:57.Israel has held funerals for the three teenagers abducted and

:10:58. > :11:00.murdered in the West Bank. Prime Minister Benjamin Netanyahu called

:11:01. > :11:02.their killers heinous murderers. Fly`tipping has been illegal for

:11:03. > :11:03.years but now courts