PLN identifies 96 potential locations for hydro-power plants

Rangga D. Fadillah, The Jakarta Post, Jakarta | Wed, 01/25/2012

State power company PT Perusahaan Listrik Negara (PLN) said on Wednesday that it had identified 96 locations across the country suitable for hydro-power plants with a total capacity of 12,800 megawatts (MW).

Around 60 percent of the locations would be developed by PLN, while the remaining 40 percent would be offered to independent power producers (IPP), PLN president director Nur Pamudji revealed at his office in Jakarta.

“However, we still face several problems due to poor management of the concession areas. Regional administrations, in some cases, issue permits to private companies [to develop areas which have been determined as hydro-power plant locations],” he explained.

According to the Energy and Mineral Resources Ministry’s data, Indonesia has a potential total of 75,670 megawatts (MW) of hydro energy, with only 5,705 MW being utilized.

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U.N. sustainable development summit shifts from climate change

Indonesia, Finland want to cooperates in renewable energy

Antara News, Tue, January 24 2012

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Jakarta (ANTARA News) - Indonesia and Finland have underscored the importance of renewable energy cooperation between the two countries in the framework of their Energy and Environment Partnership (EEP), Foreign Affairs Minister Marty Natalegawa said here on Tuesday.

Speaking to the press after a bilateral meeting with visiting Finnish European Affairs and Foreign Trade Minister Alexander Stubb, Marty said they discussed the importance of the two countries` renewable energy cooperation.

"Besides, Indonesia and Finland also agreed to enhance trade and investment relations between the two countries," Marty said, adding that the two countries had signed their EEP accord on February 14, 2011.

Marty said the EEP program was intended to reduce green house gas emissions and the impact of climate change by way of providing modern energy that was easily accessible and reliable in rural areas and usable in the industrial sector.

To make the program a success, the Finnish government had extended a 4-million-euro grant to the Indonesian government to promote renewable energy, energy efficiency, and investment in clean energy technology.

"In addition, Indonesia has also asked for Finland`s support for its Master Plan for the Acceleration and Expansion of Indonesia`s Economic Development (MP3EI)," Marty said.

Meanwhile, Alexander Stubb said the two countries cooperation in various fields had great potential to be improved.

"This is so because besides its strong economic development, Indonesia is also a member of G-20," Stubb said.

He added that Finland was very much dependent on its trade sector which accounted for 40 percent of the country`s gross domestic product (GDP).

"But the contribution of our exports (to GDP) is only 0.2 percent and therefore Finland wants to step up cooperation with Indonesia whose exports accont for 25 percent of GDP ," Stubb said.

Accompanied by a 30-strong business delegation, Stubb had come to Indonesia to step up trade and investment relations with Indonesia.

Editor: Suryanto

East Java asked to increase renewable energy projects

Antara News, Tue, January 17 2012

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Surabaya, East Java (ANTARA News) - Indonesian Chamber of Commerce and Industry (Kadin) of East Java province has asked to local government to increase the number of renewable energy projects.

"East Java is reach in renewable energy resources among others bio-gas, geothermal, wind energy, water and solar energy," local Kadin deputy chairman for energy and mineral resources Nelson Sembiring said at Energy Efficiency Week for the Area of Surabaya on Tuesday.

According to Sembiring, East Java has wider opportunity to optimize renewable energy potential because the province has abundant sources of energy such as geothermal in Ijen and Ngebel, bio-gas in Gresik, Pacitan, and South Malang, and hydro energy that has been used for 10 years in Seloliman.

"From the quantity of renewable energy sources, energy efficiency can reach 7.8 percent or almost close to East Java energy saving target of 12 to 15 percent in 2025," Sembiring said.

He also expressed optimism that the province could reach the energy saving target if it developed as many as five units of micro-hydro project per year with the investment value of Rp30 million per unit.

Editor: Priyambodo RH

Cars for high officials to switch from gasoline to gas

Bagus BT Saragih, The Jakarta Post, Jakarta, Mon, 01/16/2012

The government plans to equip all official cars used by President Susilo Bambang Yudhoyono’s Cabinet members and other high-level state officials with gas converter kits as part of the oil-to-gas conversion program.

“We have appointed [state-owned aircraft maker] PT Dirgantara Indonesia to produce the kits. But if the company fails to provide all the demanded kits, we will import more kits to fill the gap,” Coordinating People’s Welfare Minister Agung Laksono told reporters at the presidential office on Monday.

Agung added that the government expected to reach its goal by April.

The oil-to-gas conversion campaign was launched to support government plans to limit the amount of subsidized fuel used by private cars in Java and Bali, which will be gradually carried out from April.

The government hopes the program will allow it to reduce the fuel subsidy.(dic)

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Moratorium Demanded on All DPR Construction Projects

Jakarta Globe, Rizky Amelia, January 16, 2012

Indonesia Corruption Watch displays a toilet during a press conference on
Sunday to demand a moratorium on construction works in the House of
Representatives, including the planned Rp 2 billion renovation of lavatories
in one of its buildings. (JG Photo/Afriadi Hikmal). 

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The fallout from a $2.2 million meeting room renovation project at the House of Representatives continued on Sunday as antigraft groups demanded it put down the hammers and open the books.

The Anti-Budget Mafia Coalition, which includes Indonesia Corruption Watch, said the construction projects taking place at the House of Representatives were not as open and transparent as they should be.

It demanded a moratorium on all construction and renovation work and an audit into the projects that had already taken place.

Apung Widadi, from the ICW, said with no one watching over the House on these projects, corruption was more likely. He said the Supreme Audit Agency (BPK) needed to take a close look at all the construction projects undertaken or planned for the House.

The group also called on the House Secretariat General and the Household Affairs Committee (BURT) to focus on building a transparent evaluation system for all projects at the legislature.

“While the BURT and the Secretariat General improve their performance, all projects at the DPR should be temporarily frozen, a moratorium imposed,” Apung said.

Coming on the heels of criticism over a Rp 2 billion ($220,000) plan to renovate the toilets at one of the buildings used by lawmakers, the House was found to have spent Rp 20 billion to renovated a relatively small meeting room to be used by the House Budget Committee. The House has already canceled a plan in the face of mounting public criticism to build a luxurious 36-story tower to house lawmakers’ offices.

The tower was originally expected to cost taxpayers Rp 1.8 trillion, but the price went down to Rp 700 billion before the plan was scrapped.

Apung said the coalition had asked the Corruption Eradication Commission (KPK) to investigate suspicions of graft in some of the House projects.

Indonesia Budget Center researcher Roy Salam did not mince words in talking about the meeting room project.

“This renovation stinks of corruption,” he said.

The tender selection, he said, was held twice, with 13 companies originally eligible to complete but later only state-owned Pembangunan Perumahan deemed eligible.

A second tender yielded three companies, including Pembangunan Perumahan, but the two other firms were dropped due to what were called “incomplete administrative documents.”

Roy said the all the paperwork should have been checked before the tender, not after.

Apung said the leadership of the House was to blame for failing to properly supervise all the institutions within the House, including the secretariat and the BURT.

He said this lack of supervision from the leadership, combined with the lack of transparency at the secretariat, created an atmosphere where corruption could thrive.

Roy added that the secretariat was obliged to publish tender documents. Failure to do so breaks several laws, including the Public Information Openness Law, the Law on State Finance and the Law on the State Treasury.

He said his institution would demand that the contract documents for the latest renovation project be made public.

“This will show just how much the state lost,” he said.

Apung said the Rp 20 billion price tag was too high. “Our estimate is that it should have only cost Rp 500 million,” he said.

Taslim Chaniago, a member of the House Budget Committee from the National Mandate Party (PAN), said on Friday that he was resigning from the committee in protest over the project.

A glimpse of the renovated House of Representatives Budget Committee
 meeting room in Jakarta on Wednesday. The renovation cost Rp 20 billion
($2.2 million) and has been criticized as a lavish expenditure. It comes on
the heels of a House plan for new toilet facilities that would have cost taxpayers
Rp 2 billion. (Antara Photo/Yudhi Mahatma)     

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Public cars to get free gas converter kits: Govt

Bagus BT Saragih, The Jakarta Post, Jakarta, Mon, 01/09/2012

The government plans to distribute free natural gas converter kits to public transportation vehicles as part of the subsidized fuel limitation program, said Coordinating Economic Minister Hatta Rajasa on Monday.

"We have not decided the scheme for private cars yet but numerous possibilities of incentives are on the table. For instance, we can subsidize the loan interest [for those who buy the kits through credit]," Hatta told reporters at the Presidential Office.

State-owned aircraft manufacturer PT Dirgantara Indonesia is reportedly prepared to produce the kits and supply them to support the conversion program.

The government has announced the plan to limit the use of subsidized fuel by private cars on the islands of Java and Bali, starting in April.

The government has begun campaigning on the plan this week.

The Finance Ministry said the government has allocated Rp 900 billion (US$ 99 million) for the fuel-to-gas conversion program.

Part of the funds will also be used to support the development of new gas stations.

Hatta said that the government would prioritize the construction of new gas stations along the route of public transportation.

"Our target is to produce the kits and construct as many gas stations as possible," he said.

Full Steam Ahead as PLN Targets Geothermal Power

Jakarta Globe, Ririn Radiawati Kusuma,  January 06, 2012

An employee walking along a thermal pipe at the Kamojang geothermal
power plant near Garut, West Java, on March 18. State utility provider
 Perusahaan Listrik Negara is targeting an additional 135 megawatts of
electricity from three new geothermal plants. (Reuters Photo/Beawiharta)

               

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State-owned power producer Perusaahan Listrik Negara expects to generate an additional 135 megawatts of electricity from its three geothermal power plants that are set to go online this year as part of its plans to boost capacity across the nation.

Muhammad Sofyan, director of renewable energy at the state utility provider known as PLN, said on Friday that it expected to operate three new geothermal power plants this year. They include the 110 megawatt Ulubelu plant in Lampung, Sumatra; a 20 MW plant in Lahendong, North Sulawesi; and a 5 MW plant in Manggarai, West Flores.

Sofyan said the Ulubelu plant was expected to start operating by October. Pertamina Geothermal Energy will provide steam for the plant at a cost of 4.3 cents per kilowatt hour, he said.

PGE is a unit of state-owned oil and gas company Pertamina, and it provides steam at other PLN facilities in the country.

The Lahendong plant will similarly work with PGE, Sofyan said, and it should begin operating in February.

Sofyan said the Ulumbu plant would also become operational in February. PLN, he said, would provide the steam for the Ulumbu geothermal plant.

PLN is responsible for improving access to electricity and reducing power outages that are common in many parts of Indonesia.

The country’s electrification rate, which indicates what percentage of households have access to power, is forecast to increase to 75 percent this year from 71 percent last year, PLN said.

PLN is working to provide 20 MW of power from renewable energy sources on remote islands such as Mentawai, Riau and Bangka-Belitung.

Indonesia is an archipelago of more than 17,000 islands, and many volcanoes stretch across major islands such as Sumatra and Java along a range that makes it desirable to tap these geothermal sources for the production of electricity.

Renewable energy also includes production of electricity from water, wind and solar.

Indonesia, a nation of 240 million people, had power-generation capacity at as much as 28,462 MW as of the end of last year, according to PLN data.

Coal-powered plants account for around 42.2 percent of that capacity, with diesel-fired plants 23.7 percent, gas 22 percent, hydropower plants 6.7 percent and geothermal and other renewable energy at 5.4 percent.

President Susilo Bambang Yudhoyono has ordered the Energy Ministry to boost the country’s electricity capacity by implementing a 20,000 MW fast-track program. The program aims to boost the nation’s electrification rate to 80.24 percent by 2014.

Late last month, Yudhoyono inaugurated three coal-fired plants and broke ground on the upgrade of an oil refinery, facilities that are intended to help the country cope with rapidly rising demand for fuel and electricity.

Yudhoyono launched three power plants, two in Banten province and one in Central Java, via teleconference. The three plants have a total production capacity of 1,600 MW and are expected to consume 6.5 million tons of coal annually.

Lawmakers Now Interested in Student-Made Car

Jakarta Globe, Anita Rachman & Antara, January 04, 2012

The Solo mayor’s Kiat Esemka brand sport utility vehicle, which is priced
 at Rp 95 million ($10,500), was built by students at SMK (vocational school)
2 Solo and assembled using almost all locally produced components. (JG Photo)

         

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Some lawmakers, who last year were criticized for ostentatious lifestyles and flashy cars, have expressed interest in following the Solo mayor’s example and driving a locally made car.

Solo Mayor Joko Widodo, or Jokowi as he is better known, is now using a car assembled by SMK 2 Solo students along with Kiat Motor, while his deputy, F.X. Hadi Rudyatmo, is using a car assembled by the students of SMK Warga Solo, also in cooperation with Kiat Motor.  

The 1.5-liter engine Sport Utility Vehicles cost about Rp 95 million (Rp 10,500) each. 

On Wednesday, House Speaker Marzuki Alie said that he wanted to see and try out the car branded “Kiat Esemka” — a reference to how SMK (vocational high school) is pronounced, and Kiat Motor, one of the biggest car repair shops and dealerships in Solo.  

“I will visit it,” Marzuki said. “We should support its production so we could have an Indonesian built car.” 

Asked whether he would buy the car, Marzuki said: “If I have enough money, I’ll buy it.” 

A number of lawmakers are reportedly planning to order the car.  

A lawmaker from the United Development Party, Arwani Thomafi, said he really wanted one.  

“I’m not only interested, but desperate to see and try the car made by our people,” Arwani said. “Who else should buy it but us?”

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Indonesian Garbage Project Helps to Save the Climate

Jakarta Globe, Christiane Oelrich, January 01, 2012

A man perches on a makeshift raft on a river covered with trash as he
 searches for materials to recycle, north of Indonesia's capital, Jakarta
 in this file photo. Residents in Tangerang are taking trash collection into
their own hands. (Reuters Photo/Supri) 

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Tangerang. Crouched and concentrated, August and Karma rip open knotted plastic bags at the foot of a big pile of rubbish.

Yoghurt cups, paper packaging, plastic, pineapple rinds, cabbage leaves, chicken bones and the like fall out. The young Indonesian men begin sorting. Organic material goes to one side, and bottles, plastic and paper to the other.

“A super job,” remarks Karma, 23. “Finally, reliable work.” The two sort their rubbish and that of their neighbors, too. For the past year, the 325 families in Griya Serpong — a working class housing area of Tangerang, a city some 40 kilometers south-west of Jakarta — have been disposing of their garbage themselves.

Municipal garbage collection was never reliable, and the residents used to dump their refuse in a vacant field — a paradise for rats, flies, mosquitoes and snakes.

Everything is different now. The roofed garbage sorting facility is a source of local pride.

“It’s got a lot cleaner here,” notes Ulil Albab, the project’s honorary chairman.

“Nobody wanted to have anything to do with rubbish before. Now we bring school kids here and show them how to compost,” Karma says.

Residents built the facility with the help of BEST, a local non-governmental organization focusing on urban poverty and community development, and BORDA (Bremen Overseas Research and Development Association), a German non-profit organization that aims to improve the living conditions of disadvantaged communities and to keep the environment intact.

At a monthly cost per family of 12,000 Indonesian rupiahs, or a little over 1 dollar, August and Karma sweep through the alleyways of Griya Serpong with their moped and trailer every day collecting garbage — 400 kilograms of it.

They compost all organic refuse at the sorting facility. It is then sold along with the plastic, glass and paper.

Agathe, 35, has made a business out of rubbish. She collects discarded detergent and noodle bags. She and her girlfriends fashion colorful handbags and wallets from them.

When everything of value has been separated out of the housing area’s refuse, no more than 30 percent remains. It is taken to a tip.

BEST Director Hamzah Harun Al Rasyid is pleased. “It’s a win-win situation,” he says. “The housing area is cleaner, there are new jobs, and there is considerably less rubbish, so we’re reducing methane emissions from the garbage tips.”

Karma and August constantly turn over the compost pile, which aerates it. This helps prevent the formation of methane, a potent greenhouse gas that makes garbage tips a big contributor to global warming.

As Indonesia’s population grows rapidly, so do the piles of garbage that are produced by the country’s more than 240 million inhabitants.

While recycling is a booming industry — for example in Germany, where it generates some 67 billion dollars in revenues annually — almost all of the Indonesian garbage is incinerated or dumped in open tips.

About 1.8 million tons of garbage is likely to be produced daily worldwide by 2025, according to BORDA. In Indonesia, 62 percent of the refuse is organic and could be composted. But there is no large-scale sorting of refuse.

Facilities like the one in Griya Serpong are catching on. The twenty-first one is to be inaugurated in the near future, and many other communities are clamoring for their own.

“We estimate that each facility like this reduces methane by 132 tons a year,” said Jati Kusumowati, who works at the BORDA office in the city of Yogyakarta. “We think they ought to be promoted internationally as well.” One way to do this might be via the Clean Development Mechanism (CDM) set out in the Kyoto Protocol on climate change, which allows industrialized countries to meet their emission--reduction or limitation commitments in part by paying for emission cuts in developing countries.

A one-ton reduction in methane would earn about 13 to 16 dollars, according to Kusumowati.

But small projects such as the one in Griya Serpong would not clear the technical and bureaucratic hurdles necessary for them to be officially recognized. BORDA is now trying to get the requirements for small projects loosened.

DPA

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Pertamina Kicks Off $1.4b Refinery Upgrade

Jakarta Globe, December 29, 2011

President Susilo Bambang Yudhoyono, at podium, inaugurated a
$1.4 billion upgrade project at a Pertamina oil refinery in Cilacap, West
Java, on Wednesday. (Antara Photo)

               

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Pertamina, the state-controlled Indonesian oil and gas company, has begun a $1.4 billion project to upgrade an oil refinery in Cilacap, Central Java, with President Susilo Bambang Yudhoyono inaugurating the project’s groundbreaking on Wednesday.

The company is upgrading its refinery into a residual fluid catalytic cracking plant that can convert crude oil and its residual components into higher-value products such as gasoline, liquefied petroleum gas and propylene.

The refinery, which can currently process 348,000 barrels of crude oil per day, will be able to process an extra 62,000 barrels a day after the upgrade.

“Refineries are an important chain of Pertamina’s downstream sector business,” Karen Agustiawan, Pertamina’s president director, said in a speech. She added that the refinery’s “commercial operation is expected [to begin] by the end of 2014.”

“More than that,” she said, “Pertamina’s refineries play a vital role in the nation’s energy security.”

Pertamina has six refineries with a total processing capacity of one million barrels per day, and the company produces 41 million kiloliters of gasoline per year.

However, the nation’s fuel consumption has reached 56 million kiloliters of gasoline per year and is expected to increase at an annual average rate of 4 percent. Indonesia must import oil products to fill in the production gap.

The Cilacap refinery produces 3.8 million kiloliters of gasoline every year. The upgrade will boost the refinery’s annual production by 1.9 million kiloliters.

State construction firm Adhi Karya and Goldstar of South Korea won an engineering procurement contract worth $931 million to lead the refinery upgrade project.

Indonesia’s PLN to Operate 3 New Coal-Fired Plants

Jakarta Globe, December 28, 2011

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Indonesian state utility Perusahaan Listrik Negara will operate three new coal-fired power plants in Banten, the company said on Wednesday.

PLN CEO Nur Pamudji said, these power plants are crucial to step up power capacity in Java and Bali from 19,700 up to 23,000 megawatt (MW).

The coal-fired power plant is also said to cut PLN expenses as much as 19.9 trillion rupiah ($2.19 billion) per year, by converting from fuel-based power plant.

Details on power plant projects as follows:

— PLTU 1 Banten-Suralya: Capacity at 1 x 625 megawatt with 2.9 million metric tons per year coal consumption. Located in Suralaya, Banten, with investment size at around $478 million. The project is run by CNTIC and Indonesia state-owned Rekayasa Industri consortium.

— PLTU 3 Banten-Lontar: Capacity at 3 x 315 megawatt with 1.4 million metric tons per year coal consumption. Located in Lontar, Banten, with investment size at around $808.4 million. The project is run by China power equipment giant Dongfang Electric Corporation and Dalle Energy consortium.

— PLTU Tanjung Jati B: Capacity at 2 x 662 megawatt with 2.2 million metric tons per year coal consumption. Located in Tubanan, Central Java, with investment size at around 160 billion yen ($2.06 billion). The project is run by Japan’s third-largest trading firm Sumitomo Corporation, Wasa Mitra Engineering and Bangladeshi power firm Summit Power Development Ltd.

Indonesia wants to boost its electricity capacity under the government’s fast-track program to add a total of 20,000 megawatts generating capacity. Power shortages are common in Indonesia, where poor infrastructure is one of the factors restricting growth in Southeast Asia’s largest economy.

Reuters

Two ministers to facilitate geothermal projects in forest areas

Antara News, Mon, December 19 2011

Jero Wacik (right) and Zulkifli Hasan (left).
(ANTARA/Prasetyo Utomo)

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Jakarta (ANTARA News) - Energy and Mineral Resources Minister Jero Wacik and Forestry Minister Zukfili Hassan on Monday inked an agreement to facilitate implementation of geothermal energy projects in production and protected and development of the same energy sources in conservation forest areas.

Under the memorandum of understanding (MoU) signed by the two ministers, the two parties would coordinate with each other on and speed up the issuance of licences for geothermal development projects in production, protected and conservation forest areas in the country.

Jero Wacik said on the occasion the country`s need for energy was increasing continuously and therefore development of alternative energy sources including geothermal had become an absolute need.

"We will from now on more seriously encourage development of geothermal energy sources," Wacik said, noting that 40 percent of the world`s geothermal energy potentials was to be found in Indonesia.

Forestry Minister Zulkifli Hassan for his part said the agreement with the energy and mineral resources minister was made in line with a presidential instruction to speed up development of geothermal energy resources.

"This MoU will support the government`s program to build a 10,000-MW power production capacity," he said.

Jero said in the MoU the two sides had set the time required to issue a license for the initiation of a geothermal development project in a protected forest area at 1 to 7 months and to speed up the issuance of permits for 28 such projects across the country.

The 28 peojects were located at Lumit Balai, Sarulla, Karaha, Telaga Ngebel, Bedugul, Gunung Ungaran, Gunung Rajabasa, Rauntau Dedap, Gunung Tampomas, Hu`u Daha, Sorik Merapi., Sokaria.

Also at Tangkuban Perahu, Balwen Ijen, Baturaden, , Wayang Windu, Patuha, Dieng, Kaldera Danau Banten, Cisolok Sukarame, Lili Panangawan, Sungai Penuh, Hululais, Kamojang 5 and 6, Sibayak, Iyang Argopuro, Kotamobagu and Darajat.

"The stipulation of a maximum period for the issuance of a license is meant to give the developer certainty in applying for a license and to minimize the possibility of overlaps in the designation of the frest areas concerned," Jero said.

Editor: Priyambodo RH

Indonesia Passes Land Acquisition Bill

Jakarta Globe, December 16, 2011

Indonesian members of parliament approved the final draft of a long-awaited
 land bill on Wednesday that investors hope will speed up land acquisition for
 government infrastructure projects in Southeast Asia’s biggest economy.
(Antara Photo)     

         

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Jakarta. Indonesia’s House of Representatives on Friday approved a long-awaited land acquisition bill investors hope will give a big boost to government infrastructure projects in Southeast Asia’s top economy.

The bill is an attempt to break the bottleneck in infrastructure development that has long been seen as holding back growth in Southeast Asia’s top economy.

It also presents major investment opportunities in a country where roads, ports and airports are overloaded.

The House, also known as the DPR, on Wednesday signaled it would pass the bill. 

A day later, Fitch Ratings gave Indonesia an investment grade rating, which could act as a spur to much-needed investment. 

Fitch had cited weak infrastructure as one reason why it had delayed the upgrade.  

The controversial bill was passed despite a barrage of interruptions from members of the 560-strong parliament.

Shares in Indonesian construction, property and toll road firms have rallied this week on hopes the bill would be passed.

Bankers say the delay in passing the bill has been holding up the dispersal of loans to companies for infrastructure development this year.

The main toll road operator, Jasa Marga had described the impact of the delay on its business as like a race car waiting for a track.  

Sucorinvest sees the bill as positive for firms such as PT Wijaya Karya, PT Citra Marga Nusaphala Persada and PT Adhi Karya. 

Though the bill only applies to government projects, it is likely to benefit privately operated projects on government-bought land.

The government is relying on about $150 billion of private investment between 2010 and 2014 to overhaul its roads, railways and ports.

Without better infrastructure, analysts say the country’s growth may start to slow because of capacity constraints. 

Human rights groups say the bill disregards traditional land rights and could lead to more conflict over land and forced expropriation of property.

Reuters

Indonesia Legislators Give Green Light to Land Bill

Reuters

PLN ready to build Jatigede hydro power plant

Antara News, Thu, December 15 2011

Jakarta (ANTARA News) - State electricity company PT PLN is planning to build a hydro power plant with a capacity of 2x25 megawatts in Jatigede, Sumedang district, West Java province.

The plan would soon be realized following an agreement between PLN and the Directorate General of Water Resources at the Public Works Ministry, PLN senior corporate communication manager Bambang Dwiyanto said here on Thursday.

Under the agreement, the Public Works Ministry will develop and manage a dam needed to operate the power plant, while PLN will build and manage the power plant.

The construction of Jatigede hydro power plant will cover a power house, along with water ways, surge tank, penstock, tailrace, transformer yard and switch yard, transmission line and other supporting facilities.

"The electrical power produced by the Jatigede power plant will be incorporated to the Java-Bali 150 kV transmission system," Bambang said.

The construction of the dam is designed not only to generate electricity but also to irrigate 90 hectares of rice field and control floods in West Java`s northern coastal areas, particularly between Cirebon and Indramayu.

The construction of the hydro power plant will cost an estimated US$224.4 million.

Bambang said PLN was in the process of preparing a tender for the construction of the 2x25 megawatt-capacity power plant. "We hope that the Jatigede power plant will be able to supply electrical power to the Java-Bali transmission system as early as in 2015," he said.

Editor: Heru

INDONESIA: BMW starts assembling 5-series in Indonesia

Just-Auto, Tony Pugliese, 15 December 2011

BMW has begun assembly of its 5-series in Indonesia, at the PT Gaya Motor plant in Jakarta which is owned by its local distributor PT Astra International.

The plant, which also makes the 3-series model as well as vehicles of other brands, has an initial capacity of four 5-series units a day. This will be increased to eight in early 2012. Around 80% of local 5-series sales are expected to be assembled at the plant.

BMW sold 1,399 units in the January-November period of 2011, including 496 3-series and 394 5-series.

RI, China exploring cooperation on renewable energy

Antara News, Mon, December 12 2011

 Indonesia and China which had a big population were seeking to cooperate on renewable energy to anticipate the depletion of fossil energy resources.

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Jakarta (ANTARA News) - Indonesia and China are exploring cooperation on the development of renewable energy, a cabinet minister said.

Forestry Minister Zulkifli Hasan said here on Monday that Indonesia and China which had a big population were seeking to cooperate on renewable energy to anticipate the depletion of fossil energy resources.

"It is important for the two countries to develop renewable energy in the face of declining fossil energy resources. After all, China has relatively advanced technology on renewable energy, such as technology on the utilization of solar and hydro energy," the minister said.

The minister expressed his hope that the two countries would respectively set up a team to follow up on the results of a meeting between him and a Chinese delegation which was led by Cao Jialin, deputy technology minister at the Chinese Science and Technology Ministry.

Earlier, the forestry minister said that timber estate management and wood pellet product were two business sectors that were prospective for investors.

"Wood pellet as fuel is a renewable energy and environment friendly. This is because it involves a process of planting first and then utilizing it," the minister said.

At present, South Korea is encouraging the utilization of bio mass energy in the form of wood pellets in line with the shrinking of fossil fuel resources.

The problem is that the expansion of timber estate in South Korea faced land limitation problem.

The minister said that Indonesia needed to develop its bio mass energy because besides optimizing raw materials from timber estate the business also could absorb many workers.

Forestry Ministry Secretary General Hadi Daryanto said that there were three Korean investors who had been given permits by the ministry to develop timber estates and wood pellet factory with a production capacity of about 40,000 tons.

"The Korean investors needed large lands for their investment. The proposals that have been tabled cover 200,000 hectares and the ministry has approved 140,000 hectares with an investment of Rp6 trillion," he said.

Editor: Heru

Austria opens its new ‘green’ embassy

The Jakarta Post, Jakarta, Tue, 11/29/2011

For a bright future: Austrian Ambassador to Indonesia Klaus Wolfer
(second left) gestures as he gives his opening statement accompanied
 by Austrian State Secretary for European and International Affairs. Wolfgang
 Waldner (right) while Indonesian Foreign Ministry’s American and Europe
 Affairs director general Retno L.P. Marsudi (second right) looks on at the
 reception of Austrian Day at the Hotel Indonesia Kempinski Hotel in Jakarta
on Monday. JP/ Jerry Adiguna

Hundreds of guests strolled into the spacious ballroom at Hotel Indonesia-Kempinski in Central Jakarta to celebrate Austria’s national day and the official opening of the new “green” embassy building.

Austrian Ambassador to Indonesia Klaus Wolfer and his wife greeted guests, including Indonesia’s Foreign Ministry director general for American and European affairs Retno L.P. Marsudi and other diplomats from foreign representative offices in Jakarta.

Visiting Austrian State Secretary for European and International affairs Wolfgang Waldner also attended the ceremony.

Wolfer said that Austria had officially opened its new “green” embassy in Menteng, Central Jakarta, on Monday morning.

“Jakarta should be the place that will go beyond the normal routine to establish low-energy housing in tropical climates,” Wolfer told The Jakarta Post during the ceremony.He said that the embassy was installed with instruments to prevent heat. “We applied solar panels in the building to save energy.”

Wolfer added that the new two-story building could reduce the wasted energy from 100 percent to only 17 percent.He said that Jakarta was the pilot project for the green type embassy building which would possibly

apply in other countries.

Waldner also said that Austria and Indonesia’s foreign ministers had signed an agreement about student exchanges on Monday morning.

“We are planning to send 10 post-graduate Indonesian students to Austria next year,” he told the Post, adding that there will be two-way exchanges in the future.

He said that at present the student exchange program would only be for postgraduate students of mathematics and natural sciences.

“We will send Indonesian students to some universities in Vienna and in the future we will send Austrian students to the Bandung Institute of Technology and Gadjah Mada University in Yogyakarta,” Wolfer added.(drs)