:00:00. > :00:00.Now on BBC News, all the latest business news live from Singapore.
:00:00. > :00:19.It is Asia Business Report. Indonesia 's finance minister tells
:00:20. > :00:24.the BBC the economy needs to attract more foreign investment. Carving a
:00:25. > :00:32.future, Japanese craftsmen find new ways to keep the family business
:00:33. > :00:39.alive. Hello and welcome to Asia Business
:00:40. > :00:42.Report. Some investors have become wary of Indonesia after it was
:00:43. > :00:48.dubbed one of the world's fragile five economies. It is also one of
:00:49. > :00:53.the key issues for Indonesians who will vote for the next president in
:00:54. > :00:57.a week. That is why generating growth and creating jobs is a top
:00:58. > :01:00.priority for the government. As part of the coverage of the upcoming
:01:01. > :01:13.elections, our correspondent explains why the country is at a
:01:14. > :01:17.crossroads. Indonesia has become a middle income
:01:18. > :01:23.country in the last decade. It is a notable achievement. Recently,
:01:24. > :01:26.growth has slowed. Will they continue to grow in a virtuous
:01:27. > :01:39.circle? Could it fall into a vicious cycle? Resource rich Indonesia was
:01:40. > :01:46.tipped into a virtuous circle when the global commodity sought prices
:01:47. > :01:49.skyrocket. It added in investment funds boosting growth. Higher
:01:50. > :01:54.economic growth meant there was money for investment. Indonesia was
:01:55. > :02:08.in a circle of growth and investment. Will the end of the
:02:09. > :02:14.commodity burden being Indonesia fall is into a vicious circle? Low
:02:15. > :02:19.investment could lead to slower growth and less income. If the
:02:20. > :02:27.country can attract investment into new areas like consumer goods to
:02:28. > :02:33.serve the vast population, that could launch Indonesia into a new
:02:34. > :02:37.cycle of growth and prosperity. Linda also caught up with Indonesia
:02:38. > :02:44.'s finance minister and asked whether poor infrastructure is a
:02:45. > :02:50.challenge in attracting investors. This country can't go by 7% without
:02:51. > :02:58.foreign investment. If you want to grow, you need investment over GDP
:02:59. > :03:05.of 37%. It is only 32 at the moment. The only way to ensure the country
:03:06. > :03:10.grows is by opening foreign capital portfolio. We need to grow by 7%,
:03:11. > :03:16.white? It is the only way to provide jobs. What I have heard from
:03:17. > :03:22.businesses is the frustration around the traffic jams in infrastructure
:03:23. > :03:30.and one is over corruption and leakages of the money being spent.
:03:31. > :03:34.Why hasn't it been sorted? It is important to look at the current
:03:35. > :03:41.situation and the previous one. Let me ask you a question. Do you think
:03:42. > :03:44.the corruption under Suharto was relatively low masse may be the
:03:45. > :03:54.answer is, no. Why did the economy grow by 7.6%? Why have we been able
:03:55. > :03:58.to build infrastructure? We couldn't build it after the 1998 crisis. It
:03:59. > :04:05.isn't about corruption. It is about certainty. You deal with a single
:04:06. > :04:11.family in the past. Everything will be settled from the top until the
:04:12. > :04:16.bottom. Since we have had this democratic setting, there is the
:04:17. > :04:19.fragmentation of power. You must talk to Parliament, local
:04:20. > :04:23.government, central government, maybe the transaction is
:04:24. > :04:32.increasing. The problem is uncertainty. This is the thing that
:04:33. > :04:37.I have learned, there is something worse than organise corruption, and
:04:38. > :04:45.it is disorganised corruption. The resource room is over. `` resource
:04:46. > :04:52.boom. 65% of exports will collapse if this trend continues. The
:04:53. > :04:57.Indonesian finance minister. JP Morgan 's chairman and CEO has been
:04:58. > :05:02.diagnosed with throat cancer. He says the prognosis is excellent and
:05:03. > :05:06.he will continue to be involved in the investment bank during his
:05:07. > :05:13.treatment. He will limit his travel during the chemotherapy. Google has
:05:14. > :05:16.bought a free online music streaming service called Songza. It recommends
:05:17. > :05:23.playlists based on moods and has 5 million users. Financial terms were
:05:24. > :05:31.not disclosed. Reports value the deal at $15 million. HSBC pays $10
:05:32. > :05:35.million to settle US charges it defrauded taxpayers over housing
:05:36. > :05:39.foreclosures. The lender is accused of inflating fees and overcharging
:05:40. > :05:45.the US government when it protest resident foreclosures in 2009 and
:05:46. > :05:50.2010. The US government said this led to millions of dollars of
:05:51. > :05:55.losses. Australia logs a $2 billion trade deficit in May and the
:05:56. > :06:01.country's historically high dollar could have a significant impact on
:06:02. > :06:06.that. It is now worth more than 94 US cents, up 87 cents in January and
:06:07. > :06:10.some investors bet it might regain parity or equal value with the US
:06:11. > :06:14.dollar this year. Earlier, I asked an analyst whether he thought the
:06:15. > :06:20.Australian dollar would strengthen further. It is unlikely that
:06:21. > :06:25.interest rates will rise in the short term. There is dragged on the
:06:26. > :06:34.domestic economy. The reserve bank made the case the economy is weaker
:06:35. > :06:40.than expected. The most important factor is the US dollar and a
:06:41. > :06:44.strengthening US dollar is something we believe in. While we might see
:06:45. > :06:48.short`term strength in our dollar, we think the US dollar will come
:06:49. > :06:51.back and we see the Australian dollar in the medium`term somewhere
:06:52. > :06:58.in the mid` 80s as opposed to parity, which it might touch the
:06:59. > :07:01.short term. Businesses have throughout history
:07:02. > :07:04.been handed down through generations and in some cases they stay in the
:07:05. > :07:09.same family for hundreds of years. How do they adapt and survive?
:07:10. > :07:16.Rupert Wingfield`Hayes met the last in a line of craftsmen in Japan and
:07:17. > :07:23.has diversify to his family business although not entirely on purpose.
:07:24. > :07:30.Have a guess what this craftsmen is making. Whatever you guessed, I am
:07:31. > :07:33.pretty sure it is wrong. These strips of wood and glue will
:07:34. > :07:43.eventually be part of a bicycle. That's right. I would bicycle. `` a
:07:44. > :07:47.wooden bicycle. This man's family have been mastered boatbuilders for
:07:48. > :07:55.over 200 years. In a nearby dock, he has the first one he ever made. He
:07:56. > :08:00.began building Pretty Angel when he was 13, it took him five years. How
:08:01. > :08:15.did he get from here to making bicycles? I can make a bicycle the
:08:16. > :08:23.same way. Some European people are asking for it to not be exactly
:08:24. > :08:37.round. Seven years ago, he built this, a racing bike made entirely of
:08:38. > :08:44.mahogany. Here we go. It is a rather strange feeling, to be riding a
:08:45. > :08:50.$20,000 mahogany bicycle. You would not think it is wood, but it is
:08:51. > :08:58.astonishingly light, 7.5 kilograms, the same as a carbon bike. He made
:08:59. > :09:04.his first bike to show off his woodworking skills. Then he took it
:09:05. > :09:09.to a European bike show. Everybody was surprised. Some people tried to
:09:10. > :09:27.ride. Very fast and interesting bike! I had three orders in one day.
:09:28. > :09:33.I was very surprised. Client says, the price is high, but quality is
:09:34. > :09:46.also very high and it looks very nice and I have never seen such a
:09:47. > :09:51.high performance would bike. He is a craftsmen who takes immense pride in
:09:52. > :09:56.what he banks. He will make three bikes this year `` makes. If you
:09:57. > :10:03.order one now, you will have to wait until 2018 to get it. His daughters
:10:04. > :10:11.don't want to do this. When he retires, all of his knowledge and
:10:12. > :10:15.skills could be lost for ever. Before we go, a story for those who
:10:16. > :10:20.like to invest in a good night sleep. Tracy England has sold her
:10:21. > :10:26.own made bad, replete with empty bottles, condom than cigarette
:10:27. > :10:34.butts, for more than $4 million at a London auction. My bet does not look
:10:35. > :10:36.like that and it does not copper asthma `` does not cost that much
:10:37. > :10:42.either. Thank you for watching Asia Business Report. I am Mike Embley.
:10:43. > :10:43.The main news stories this