World Halal Business and Food Expo Held in Jakarta

KOMPAS.COM/GABRIEL ABDISUSANTO, SATURDAY, 21 NOVEMBER 2009 | 7:23 AM

JAKARTA, KOMPAS.com - The Food, Drug and Cosmetics Study Institute at the Indonesian Ulemas Council (MUI) and PT Puteri Cahaya Kharisma (Performax) will hold a world halal summit and halal business and food expo here on July 23-25, 2010.

"The events will be attended by representatives from Muslim countries. Most of them are engaged in food, beverage, banking, distribution, hypermart, and cosmetics industries," Performax President Director Risda Amarina said here on Friday.

As the world’s largest Muslim country, Indonesia played an important role in halal food and beverage industries to protect world Muslim customers. It also had the potential to serve as a source of world halal products and a destination of Muslim tourists, she said.

Indonesia was also open to international trade and therefore, it was very reasonable for the country to play an important role in applying a halal system, she said. According to her, the halal system applied not only to foods and beverages but also to businesses based on Islamic principles.

She said the halal system in Indonesia had covered the food sector and the sharia banking industry as the business supporting sector. However, many business agents and people still had inadequate knowledge of halal concept in an integrated way.

"To familiarize the community with the concept, the institute, along with Performax under the sponsorship of the Trade Ministry, the Culture and Tourism Ministry, the Agriculture Ministry, the Industry Ministry, and the Drug and Food Control Agency (BPOM) would organize the events," she said.

Editor: jimbon

RI eyes more investment from Italy, Luxembourg

Hyginus Hardoyo, The Jakarta Post, Rome | Sat, 11/21/2009 12:12 PM

Indonesia is looking to attract further investment from Italy and Luxembourg - two European countries largely untapped so far, Indonesian Vice President Boediono said Thursday.

Speaking after a meeting with representatives of 14 Italian companies at the Hassler Roma Hotel in Rome, Boediono said Italian businessmen had expressed an interest in doing business or in continuing to expand their existing operations in Indonesia.

Some of the 14 Italian companies have already established joint ventures in Indonesia in various fields, ranging from oil and gas exploration, coal mining, engineering and construction, to leather production.

ENI Indonesia Ltd., one of energy giant ENI SPA's subsidiaries in Indonesia, for example, has completed its gas and oil exploration in Ambalat waters in East Kalimantan.

"The oil and gas production there is already in the pipeline. It .., is still waiting for certainty," Boediono said, referring to border areas in Ambalat currently in dispute between Indonesia and Malaysia.

Other Italian companies invited to the meeting included Assorcarboni and Enel SPA, which both specialize in coal imports, Allilauro SPS (in maritime transportation), Fiat Group (automotive industry), Ponte de Archimede SPA (in alternative and eco-friendly energy development) and Trevi SPA (in drilling and foundation engineering services).

The meeting was held on the sidelines of Boediono's visit to Italy to attend the Food and Agriculture Organization's World Summit of Food Security at the FAO headquarters on Wednesday in Rome.

During the visit, Boediono was accompanied by Agriculture Minister Suswono and Investment Coordinating Agency (BKPM) chief Gita Wiryawan, who joined the Vice President's entourage after visiting Luxembuorg.

Gita said a similar interest had been expressed among businessmen from Luxembourg, especially in the coal business.

"Around 50 percent of Luxembourg's coal imports are supplied by Indonesia," Gita said, without providing details on the volume.

Indonesia has become the largest coal exporter to Italy, with a current market share of 30.9 percent.

In 2004, Indonesia's coal exports to Italy reached US$314.9 million. This figure jumped to $959.9 million in 2008.

Exports in the January-May period in 2009 dropped by 20 percent from the corresponding period in 2008, but this decline affected all coal exporters to Italy.

Given the promising response among investors in Italy and Luxembourg, Gita said the Indonesian government would do its best to improve bilateral trade with the two countries.

Gita further said foreign investment commitments registered with BKPM had reached $13 billion so far this year, adding that only a fraction of this amount had come from Italy.

Indonesia Information Technology Report Q4 2009 - New Report Published

New report provides detailed analysis of the Information Technology market

Companiesandmarkets.com and OfficialWire, by Press Office, Published on November 20, 2009

The Indonesian IT market should grow at a compound annual growth rate (CAGR) of around 13% over 2009-2013 despite a deceleration in 2009, with demand in key segments affected by the global economic crisis. In H109, some manufacturing organisations deferred IT procurements, but there was continued spending in the financial sector, which had previously accounted for as much as 30% of total spending.

Demand is expected to pick up in 2010, and return to double-digit territory by 2011.

Government spending is expected to increase this year, and some fundamental drivers, including low computer penetration and growing affordability, should ensure that the market remains in positive growth territory. Indeed, Indonesia is projected to be one of the best regional IT market growth prospects over BMI's five-year forecast period. 2009 has undoubtedly brought more caution, however, with pressure for cutbacks as companies focus more on the bottom line and immediate needs.

By 2013, Indonesia's hardware-dominated IT market is projected to reach a value of US$5.7bn, displaying faster growth than many Association of South East Asian Nations (ASEAN) neighbours. With information and communication technologies (ICT) penetration of only around 20% and development restricted to richer areas such as Java, the market has much latent growth potential. However, the country's uneven development, and resultant digital divide, is a major barrier to faster growth within this potentially huge IT market.

Industry Developments

In H109 a ministerial decree directed that local government offices across Indonesia must adopt open source software (OSS) by 2011. The mayor of Surabaya revealed in July 2009 that his city had launched a pilot project for OSS applications. According to the mayor, all Surabaya municipal offices were now using the software, and civil servants had been given relevant training. The local government hoped that the municipality could save between 20% and 25% of its budget.

E-government is expected to emerge as an area of growing opportunity for IT vendors over the next couple of years. Currently, several ministries at both federal and province level are planning to implement projects. In 2008, a number of projects were launched, including an e-procurement system by the State Ministry for State Enterprise, which covered 25 state-owned enterprises, including state oil and gas company Pertamina and state electricity company Perusahaan Listrik Negara (PLN).

The government is also rolling out new e-learning initiatives, which could see education's share of the local IT spending rise from its estimated level of around 4%. The current ratio of PCs to students in public schools is around 1:3,200, and the government wants to increase this to 1:20. As there are 53mn students in Indonesia's schools system, this would require at least 2.5mn computers.

Indonesia Information Technology Report Q4 2009 © Business Monitor International Ltd Page 6 Competitive Landscape Multinational vendors dominate the Indonesian brand PC market leaders, with Acer currently boasting the edge in both notebook and desktop segments. In addition to HP and Acer, the rest of the top five comprises of Dell, Lenovo and Zyrex. While locally assembled 'white boxes' still claim up to 60% of the local PC market, a number of local PC and notebooks brands also enjoy increasing success, including Zyrex and Ion.

Acer is thought to have a market share of more than 40% for notebooks. In 2009 the Taiwanese vendor continued to expand its presence across both notebook and desktop segments with more product releases.

Meanwhile, HP has pledged to reclaim top spot in the Indonesian market from Acer at some point in H110 and has been aggressive in launching new notebook and netbook series.

IT services vendors have reported a growing demand in the telecoms, manufacturing and banking sectors.

Oracle has an agreement with local IT solutions provider PT Sigma Cipta Caraka (Sigma) to provide outsourcing services. Meanwhile, e-government is also being eyed by IT services vendors as a potential growth area. Tata Consultancy Services (TCS) said that it had targeted the government as a future growth driver in the Indonesian market. Currently, TCS's 15 local clients are principally from sectors such as banking and financial services, telecoms and media.

Hardware

The report forecasts 2009 Indonesia computer hardware spending of around US$2.5bn, up from US$2.4bn last year. Growth decelerated in 2009 and is forecast to be in low single digits this year before ticking up again in 2010. Double-digit growth is expected to resume in 2011, with the market rising to a value of nearly US$4.0bn by 2013.

Early results for 2009 were encouraging, due largely to notebook sales, which surged thanks to the popularity of netbooks; notebook sales grew faster than desktops in H109. In the current environment, the most promising growth driver is perhaps the consumer segment, which accounts for around 25% of computer demand. The main drivers are growing affordability and more credit availability.

Software

For 2009, software sales are projected at US$402mn, up from an estimated US$377mn in 2008, despite the current economic slowdown. There were signs in H109 that many firms planned to increase software spending. One market inhibitor is the continuing software piracy problem, which, by the local government's own figures, loses Indonesian software companies alone more than US$100mn a year.

Over the forecast period, enterprise resource planning (ERP) software continues to be of most interest to the small and medium-sized enterprises (SMEs) market as currently only around 20% of Indonesian SMEs are estimated to make use of IT.

IT Services

Indonesia's IT services market is projected to be worth US$589mn in 2009, recording year-on-year (y-oy) growth of 4% from US$564mn in 2008. Currently, IT services account for only 17% of the country's hardware-centric IT market sales. Hardware deployment services remain the largest Indonesian IT services category, with approximately a 20% share.

In 2009, the banking sector continued to provide opportunities for IT vendors, despite the fallout from the global financial crisis. Banks continued with transformation strategies driven by factors such as new technologies & services and regulatory compliance. However, most opportunities are currently in fundamental service areas such as system integration, support systems, training, professional services, outsourcing and internet services.

E-Readiness

Low telephone line density, high charges and low PC penetration are all significant obstacles to higher internet penetration. However, the picture is not all bad as there are signs of faster growth in user numbers, and recent surveys have shown that, among a very small elite, there is fast adoption, by regional standards, of broadband and a willingness to pay for video conferencing, security and other additional features. The government is encouraging fixed wireless deployments, including WiMAX, to bring the internet to more remote areas.

The government is also rolling out an internet-based National Education Network, which involves 1,000 network points in five clusters nationwide, designed to facilitate the use of the internet in schools. Despite some advances in e-education, constraints remain due to poor infrastructure and lack of public awareness in a country where only 20mn people own fixed-line telephones.

Japan to Fund Procurement of Dredgers

Tempo Interactive, Friday, 20 November, 2009 | 16:31 WIB

TEMPO Interactive, Makassar:The Japanese government is ready to disburse Rp 6 billion for the procurement of dredging boats for the South Sulawesi provincial government in 2010.

Pompengan-Jeneberang Chief of Program and Evaluation, Widiarto, said the dredger procurement was included in a series of negotiations between the South Sulawesi provincial government and Japan. Dredgers are required to reduce the increased sedimentation in Bilibili dam in Gowa regency.

“We have negotiated with Japan. The tender for the dredger procurement project will take place in 2010,” Widiarto said when contacted by Tempo yesterday.

According to Widiarto, the dredging of Bilibili dam has become urgent since it is one of the water suppliers in Makassar and Gowa regency.

Widiarto said the dam sedimentation has now reached 75 million cubic meters. Yet, the dam can only store 375 cubic meters of water. He is concerned that the dam capacity will continue to be reduced if it is not dredged.

Furthermore, Widiarto is also worried about a potential landslide from Mount Bawakaraeng which is predicted to throw up 137 cubic meters of mud into the dam. “Dredger procurement will be a good solution,” he said.

South Sulawesi chief of Water Resources Supply Office, Soeprapto, said the dredger will not only be used to anticipate increasing sedimentation in the Bilibili dam, but it is also expected to be the solution for smooth operation of secondary water channels in some areas, including for the Makassar canal. “We hope it can be realized by 2010,” he said.

There is in fact a 14 kilometer-long canal in Makassar, extending from the east to the south. The once five-meter-deep canal is in unusable condition because it is now only two meter deep due to sedimentation caused by garbage.

Not much has been done by the municipality government since only Rp 400 million was allocated to clean the canal. “Such an allocation is only enough to pay 100 cleaning staffs,” lamented Makassar Public Works Office chief in charge of Water Development, Baharuddin. Hence, he hopes that if the canal is dredged, the funds can be taken from the provincial budget.

Earlier, South Sulawesi governor Syahrul Yasin Limpo had asked the Public Works Department to lend them their dredger. This was rejected, claiming that the dredger that they have was being used by Jakarta government to clean water channels.

TRI SUHARMAN

Indonesia, Australia eying expansion of business, trade

The Jakarta Post, Jakarta | Fri, 11/20/2009 9:02 PM

Investment Coordinating Board chairman Gita Wirjawan and deputy trade minister Mahendra Siregar will brief 150 Indonesian and Australian businesspeople at a two-day conference in Yogyakarta on new business opportunities within bilateral economic ties.

The annual conference of the Indonesia Australia Business Council (IABC), beginning Monday, will discuss new ways of further developing business ties between the two countries amid the green shoots sprouting in the industrialized economies and a robust recovery in Indonesia.

“The perception among Australian businesspeople towards Indonesia is quite positive, and they are looking forward to even better trade and investment opportunities during President Susilo Bambang Yudhoyono’s second administration,” IABC executive director Vic Halim told The Jakarta Post on Friday.

The meeting will discuss issues related to natural resource and infrastructure development, tourism, small and medium-enterprise partnership, taxation, financing and labor regulations.

Indonesia was Australia’s 13th largest trading partner last year, with two-way trade of merchandise (commodities) and services totaling about US$10 billion.

Indonesia is Australia’s 18th largest investment destination with a cumulative stock of capital investment amounting to nearly $4 billion.

Irish business to manage Sabang port

The Jakarta Post, Jakarta | Thu, 11/19/2009 1:10 PM

After years of uncertain negotiations, the Ireland-based Dublin Port Company has signed an 18-month business contract with the government to take control of the management of Sabang international port in Nanggroe Aceh Darussalam.

Representatives from Aceh administration and Dublin Port signed a Memorandum of Understanding (MoU) in 2006 to jointly develop the port but no significant developments took place since then.

The agreement was signed on Nov. 13, allowing Dublin Port - through its partner HD Asia Maritime - to take part in the port's management, replacing state-owned port operator PT Pelabuhan Indonesia (Pelindo) I.

Under this agreement, the world's 12th largest port operator would handle all the port's operations and improve facilities, including the container yard, storage facilities, warehouses, and cargo terminals.

"We will also provide top-class security services for the port's customers and carry out marketing promotions to bring more ships to Sabang," said Bernardus R. Djonoputro, the CEO of consulting company HD Asia Advisory, HD Asia Maritime's parent company, during a media conference Wednesday.

The appointment of Dublin Port came as the port is embarking on a massive overhaul that could cost up to Rp 8.8 trillion (US$896 million) up until 2015 at the latest.

Sabang port is operating two piers, each is 180 meters long and 12 meters wide, capable of accommodating ships with dead weight capacity of up to 10,000 tons, with the administration now preparing to build a third pier stretching 423 meters using Rp 1 trillion of state funds.

"The construction of the third pier will finish in 2011," Sabang Area Management Body (BPKS) deputy chairman Nasruddin Daud said.

The final target is to upgrade the port with a total of 2,617 meters of piers, with the government expecting foreign investors to take part.

One of them could be Dublin Port, Bernardus said, adding that the operator was ready to disburse up to $600 million on upgrading.

"We'll see what will happen after this first phase of cooperation. It's very possible for us to invest in developing the port's infrastructure."

Sabang port is 1.4 kilometers in length and 0.8 kilometers wide with a one hectare container yard.

"Today, goods are docked at Belawan port in Medan and carried by trucks to reach Banda Aceh, 620 km away," Nasruddin added.

Banda Aceh is located about 35 miles south of Sabang. "We can save a lot of money if the goods can directly reach Sabang," he said. (bbs)

PLN to tender 4 power plants under 2nd crash program

Alfian , The Jakarta Post, Jakarta | Fri, 11/20/2009 1:05 PM

State utility company PT PLN plans to open tenders for construction of four power plants with the total capacity of 1,648 megawatt (MW) next year, a director said.

"All the power plants are included in the second phase 10,000 MW electricity crash program. We expect to open the tender for the construction in 2010," PLN's planning and technology director Bambang Praptono told reporters Thursday.

The four power plants are: the 1,000 MW Cisokan power plant in West Java; the 2x100 MW New North Sumatra power plant in North Sumatra; the 2x174 MW Asahan III power plant in North Sumatra; and the 2x50 MW Parit Baru power plant in West Kalimantan, he added.

Bambang said the construction of these power plants would require as much as US$1 billion for the Cisokan power plant; $500 million for the New North Sumatera power plant; $300 million for the Asahan III power plant; and $250 million for the Parit Baru plant.

"As for the Cisokan power plant, we have got a $1 billion loan commitment from World Bank. We will open the tender for its construction next year and the power plant is expected to be on stream between 2013 and 2014," Bambang said.

The remaining projects may be financed by Japan International Cooperation Agency (JICA) and by a consortium of banks from China, he added.

The government launched the first 10,000 MW power project in 2006, in a bid to anticipate increasing demand for electricity, which has been growing by at least 7 percent annually.

The second phase 10,000 MW program is being planned now and is scheduled to be implemented between 2010 and 2014.

In a presentation in August, PLN said the projects under the program were expected to generate a total electricity capacity of 10,580 MW. Of this capacity, 5,685 MW will be located in Java and the remaining 4,895 MW will be outside Java.

The construction of the power plants under the project will require $10 billion, PLN's president director Fahmi Mochtar said Oct. 20.

Bambang said that one of the power plants under the second 10,000 MW project, the 120 MW Lahendong IV geothermal power plant in North Sulawesi, has already secured a financing commitment and has selected the engineering, procurement, and construction (EPC) contractor.

The $30 million power plant will be financed by a loan from Asian Development Bank (ADB), while its EPC will be done by Sumitomo.

Under the second crash program, it is proposed that 12 percent of the power generated will be generated by hydro plants, 48 percent from geothermal plants, and 14 percent from gas plants, and the remaining 26 percent from coal fired plants.

Under the first 10,000 MW program, all the proposed power plants were coal-fired.

Indosat extends sea cable system to Singapore

Antara News, Tuesday, November 17, 2009 21:17 WIB

PT Indosat. (ANTARA/Ardika)Jakarta (ANTARA News) - Telecommunication operator PT Indosat Tbk will spread the sea cable communication system or SKKL to connect Jakarta, Pontianak, Batam and Singapore which will be used for the internet-based protocol (IP) or non IP services.

PT Indosat president director Harry Sasongko after inaugurating two new telecommunication backbones here Tuesday, said that the marine cable system is 1,300 km long.

"With this additional marine cable systems, Indosat will have additional bandwidth capacity at the early stage of 80 Gbps which will be used for both IP-based services (Internet Protocol) and the non-IP," he said.

The SKKL installed by Indosat in cooperation with NEC has a four landing points on the islands of Tanjung Pakis (Karawang, West Java), Sungai Kakap (Pontianak, West Kalimantan), Tanjung Bemban (Batam), and Changi (Singapore).

"The fiber-optic network will be able to anticipate the possibility of the very large demand until the Gbps (Giga bits per second)," he said.

In addition, the network is expected to serve as a redundant or back up for the existing international network.

"All cable systems FO or fiber optic Indosat has used ring system or redundant, so if there is a break in the cable, it will be immediately backed up by another network," he said.

Meanwhile, the Indonesian ambassador to Singapore, Ali Wardana said, at least 158 thousand Indonesian people live in Singapore so that the existence of the SKKL has a potential to increase relations between the two countries.

BTN aims for Rp 2.6t from IPO

Nani Afrida , The Jakarta Post, Jakarta | Thu, 11/19/2009 9:38 PM

State-owned bank PT Bank Tabungan Negara (BTN) officially announced Thursday a plan to sell 27 percent of its stakes through its initial public offering (IPO).

BTN treasury director Saut Pardede said the bank expected to raise substantial fresh capital, which it would use to expand its business.

“The range is about Rp 1.8 trillion to Rp 2.6 trillion depending on the share prices,” he said.

Mandiri Sekuritas and CIMB Sekuritas will be underwriting the IPO.

Mandiri Sekuritas’ director of investment banking, Iman Rahman, said shares would be offered at between Rp 750 and Rp 1,100.

“We plan to register our first initial public offering at the Indonesia Stock Exchange (IDX) on Dec. 17. The book building starts today and ends Dec. 3,” Iman said, adding that BTN would also offer stakes to foreign investors.

“We will have investor road shows in Asia and Europe,” Iman said.

Women in Makassar Have Opportunity to Study in the Netherlands

Tempo Interactive, Wednesday, 18 November, 2009 | 14:47 WIB

TEMPO Interactive, Makassar: The Nuffic Netherlands Education Support Office (Neso) in Indonesia is awarding scholarships for people in Makassar to study in the Netherlands. This program prioritizes women.

A Neso member of staff, Ariono Hadipuro, said that applicants from eastern Indonesia can apply through a pre-registration system.

The system allows applicants from eastern Indonesia to have TOEFL of 475 at minimum while applicants from western Indonesia have to have TOEFL of more than 550.

During the educational exhibition yesterday (17/11), Ariono said that 50 percent of the quota for master and short-course programs are for those from eastern Indonesia. Half of this is provided for women.

The Dutch government is allocating 30 million Euro for the scholarship program over the next five years.

“It is committed not to reduce the program budget even though there is a financial crisis,” said Ariono.

SUKMAWATI | HAPSA MARALA

PLN to fine contractors delaying projects

Antara News, Thursday, November 19, 2009 17:24 WIB

Jakarta (ANTARA News) - State-owned electricity company PLN will fine contractors delaying the completion of their projects under the 10,000 megawatt (MW) power plant projects, a PLN director said.

PLN`s director for strategic construction affairs Agung Nugroho said here on Thursday that the fine would be imposed on contractors who could not show acceptable reasons of the delay.

"The fine has been stipulated in the contracts," he said.

He said that the fine amounts up to five percent of the total contract value, which comes to one per mill per day.

In the meantime, contractors could also lodge a complaint if PLN delayed payments.

PLN estimated that only about 915 MW of the projected 1,890 MW under the 10,000 MW mega project crash program would be completed at the end of this year.

PLN to get Rp 1.5 trillion loan from BRI to build more power plants

Alfian, The Jakarta Post, Jakarta | Wed, 11/18/2009 12:51 PM

State power firm PT Perusahaan Listrik Negara (PLN), currently riddled with power blackout problems, will soon secure a Rp 1.5 trillion (about US$160 million) loan from Bank Rakyat Indonesia (BRI) for construction of four power plants under the government's 10,000 megawatt (MW) electricity crash program.

The four power plants are t a 2x10 MW Power Plant, the 2x7 MW Riau Selat Panjang Power Plant, the 2x7 MW Tanjung Balai Karimun Power Plant, and the 2x50 West Kalimantan Power Plant, PLN's director Fahmi Mochtar said in a text message on Wednesday.

"The loan has a maturity period of ten years. We are still waiting for the approval from the finance minister. We expect to sign the loan agreement in December," Fahmi said.

The 10,000 MW program was launched by the government in 2006 in a bid to anticipate the increasing demand of electricity which reach about 7 percent a year. The projects consists 35 power plant sites, with 10 of them located in Java and the remaining 25 located outside Java.

Indonesia Lifts Import Duty on Materials for Key Industries

The Jakarta Globe, Dion Bisara & Irvan Tisnabudi

Tourism is among the seven key service industries set to benefit from the lifting of import duties. (Photo: Adek Berry, AFP)

In a bid to boost investment and increase global competitiveness, the government on Wednesday scrapped the 5 percent import duty normally imposed on machinery and raw materials for seven vital service industries.

The Ministry of Finance said the regulation would take effect on Dec. 16 and would remain valid for two years before being re-evaluated.

The regulation covers transportation, telecommunications, public health, tourism and culture, as well as supporting services for mining, construction and ports and harbors.

Anggito Abimanyu, the Finance Ministry’s head of fiscal policy, said a similar tax break had been given to the manufacturing industry as part of the government’s Rp 73.3 trillion ($7.9 billion) fiscal stimulus package this year.

It was intended to help domestic companies compete in the global market and to attract investment.

“We decided to scrap the import duties for manufacturing industries to encourage domestic industries to open new plants or businesses,” Anggito said.

Jeffrey Mulyono, the head of the coal and geothermal commission at the Indonesian Chamber of Commerce and Industry (Kadin), said he welcomed the move.

“The existence of these [seven service industries] should be supported and [they should] have their taxes lowered to the lowest level possible, which will be beneficial for the local producers as well,” Jeffrey said.

“The Finance Ministry has finally fulfilled the wishes of local businesses by doing this,” Jeffrey added.

However, Erwin Aksa, the chairman of the Indonesian Young Entrepreneurs Association (Hipmi), said the removal of the import duty would not greatly benefit domestic industries until the government was able to provide sufficient basic infrastructure, especially power.

“As good as it is, the incentive will not immediately increase investment because what we really need now is electricity to be available and reliable,” Erwin said, referring to the power outages which have plagued the Great Jakarta area over the past two months.

Companies wishing to take advantage of the reduced import duty must contact the Investment Coordinating Board (BKPM).

Niko Resources Takes Indonesia Acreage To 12.1 Million Acres With Black Gold Energy Acquisition

Proactiveinvestors

Niko Resources (TSX: NKO) has expanded its operations in Indonesia by acquiring its partner in all projects in that country Black Gold Energy, taking its total interest to 12.1 million acres to make it one of the largest holders of deepwater exploration acreage.

The deal is worth a total C$310 million, which will be financed through the issue of convertible debentures, which will mature in three years and carry a conversion price of C$110.50 per share.

“Niko is attracted to this additional acreage due to its excellent prospectivity, good fiscal terms and proximity to the growing Asian oil and gas market. In addition, the Black Gold team is impressive both in terms of knowledge and technology. Niko will now have an unparalleled platform to add shareholder value by growing in Indonesia and beyond,” said Chairman and Chief Executive of Niko Edward Sampson.

The company has total oil and gas resources of 4.2 MMbbl (million barrels) and 1.68 tcf (trillion cubic feet) respectively, including 3 MMbbl and 1.18 tcf in the proved category.

IFC offers loans to reforest degraded land

Adianto P. Simamora, The Jakarta Post, Jakarta | Tue, 11/17/2009 9:23 PM

The International Finance Corporation (IFC), a private arm of the World Bank, has announced it will provide loans to local companies interested in reforesting degraded land, to reduce the impacts of climate change.

The IFC launched its sustainable-forest program on Tuesday, targeting to replant 250,000 hectares of damaged forest land — in Sumatra, Kalimantan and East and West Nusa Tenggara — within five years.

Restoring 250,000 hectares of forests could cut around 90 million tons of carbon emissions annually, which could be traded under the clean development mechanism (CDM) stipulated in the Kyoto Protocol.

“The program has several benefits; reducing greenhouse gas emissions, putting the land to a productive use and producing new jobs in rural areas,” IFC Indonesia for Sustainable Forestry program manager Kenneth Mac Dicken said Tuesday.

The program would provide a promising option to investors, as demand for forest products, including timber, would likely increase in future, he said.

“Expansion for new [production] forests will decrease because of pressure [to reduce] the high deforestation rate in Indonesia,” he said.

Replanting projects could be carried out on low-carbon stock areas such as grasslands, by planting fast-growing trees.

According to the IFC, there are around 96 million hectares of degraded land in Indonesia at present, at least 8 million hectares of which is coarse grassland.

The program aims to generate up to 90,000 jobs in rural areas.

Related Articles:

Indonesia Forestry Ministry Asks for Cash Boost

Indonesian forests on frontline of climate debate

Carrefour to Promote Locally-grown Fruits

TEMPO Interactive, 16 November, 2009 | 15:18 WIB

TEMPO Interactive, Jakarta:PT Carrefour Indonesia President Director, Shafie Shamsuddin, promised to introduce locally-grown fruits as exports through thousands of Carrefour supermarkets spread worldwide. “Indonesian fruits are considered halal-guaranteed and clean,” he said on Saturday.

Demand for Indonesian fruits according to Shafie, comes not only from the Middle East but also from Thailand, Malaysia, Singapore and Japan. “They really like Malang apples because it is the main ingredient for apple pies,” he added.

However, the export of locally-grown fruits face problems. Prospects would improve if the role of mediators was reduced. Fruit farmers’ are also being urged to improve the quality of their products.

Kartika Candra

China Interested in Investing in Infrastructure and Electricity Projects

Tempo Interactive, Monday, 16 November, 2009 | 14:50 WIB

TEMPO Interactive, Singapore:Chinese president Hu Jintao has promised to participate in building the infrastructure sector in Indonesia and to invest in energy projects.

This was communicated by Industry Minister M. Hidayat during breaks at the Asia Pacific Economic Cooperation (APEC) meeting in Singapore, last week. “This was what the Chinese president told President Yudhoyono," he said.

Hidayat also said the two countries have agreed to improve the domestic market as Indonesia and China have so far been relying on exports.

Presidents Yudhoyono and Hu Jintao had a meeting on Friday before the APEC forum held in Singapore from November 14 to 15.

ALI | ANTARA

RI geothermal investment opportunities offered to NZ

Antara news, Saturday, November 14, 2009 22:03 WIB

Singapore (ANTARA News) - Indonesia has offered investment opportunities in the geothermal field to New Zealand to develop environmentally-friendly energy based on the "green growth" principle.

Industry Minister MS Hidayat said here on Saturday that the offer was made at a bilateral meeting between Indonesian President Susilo Bambang Yudhoyono and New Zealand Prime Minister John Key at the Gemini Room of the Marina Mandarin Hotel in Singapore in the run-up to the 17th Asia Pacific Economic Cooperation (APEC) forum.

"New Zealand has geothermal technology and therefore we discussed it with Prime Minister John Key," Hidayat said after accompanying President Yudhoyono at the bilateral meeting.

He said that after the meeting with John Key, President Yudhoyono gave directives to related ministers to emphasize on several cooperations with various countries, including New Zealand, which has competence in the geothermal energy field.

"We offered geothermal investment opportunities to New Zealand," Hidayat said, adding that to develop geothermal energy, the government should immediately issue a relevant pricing policy so that the investors who had interest in it could calculate the continuation of the investment in that field.

"If the price is commercially reasonable, the investors can continue to invest but if it isn`t, they would not dare to do so," Hidayat said.

Asked about New Zealand`s reaction to the offer, Hidayat said Prime Minister John Key asked Indonesia to decide the kind of geothermal development and then the New Zealand government would encourage private parties in the country to explore it in Indonesia.

"We have yet to touch on the value because we have yet to offer it specifically. We only said we want investment in the geothermal sector," Hidayat said, adding that a similar offer was also made to Japan.

Besides having bilateral talks with the New Zealand prime minister, President Yudhoyono had made a series of bilateral meetings with several heads of state/government, among others with Singapore Prime Minister Lee Hsien Loong, Chinese President Hu Jintao, and Papua New Guinean Prime Minister Sir Michael Somare.

In the meeting with the New Zealand prime minister, President Yudhoyono was accompanied by among others Foreign Affairs Minister Marty Natalegawa, Coordinating Minister for Economy Hatta Radjasa, Finance Minister Sri Mulyani, Trade Minister Mari Elka Pangestu, Industry Minister M Hidayat, and presidential spokesman Dino Patti Djalal.

Indonesia Needs 35,000 Tourist Guides

Kompas, Jimbon, FRIDAY, 13 NOVEMBER 2009 | 6:27 PM

International tourists swarm Fatahillah Park, Kota Tua Jakarta. (Kompas/Osa Triyatna)

PONTIANAK, KOMPAS.com - Indonesia is in need of around 35,000 tourist guides in light of the country’s target of attracting 7 million foreign tourists in 2010. "The Indonesian Tourist Guides Association (HPI) at present has 12,000 members, and for just 2 million tourists, we need around 10,000 guides," I Nyoman Kandia, chairman of the HPI’s central executive board, said here on Friday.

Of the existing 12,000 tourist guides, he said, only about 30 percent were categorized as professional ones. According to Nyoman Kandia, tourist guides played an important role in supporting the tourism industry in the country.

"Tourist guides are required to master everything related to tourism objects, foreign exchange rates, and other kinds of information not directly related to tourism," Kandia said. In addition, he said, they were also required to master as many foreign languages as possible.

"Foreign language mastery is compulsory for tourist guides," Nyoman Kandia said, adding that about 50 percent of foreign tourists’ satisfaction depended on the tourist guides’ capability to explain everything they see or experience in the country. Therefore, he expressed hope that the central government would facilitate the training of professional tourist guides for all tourist destination areas across the country.

"The HPI central executive board has a management program for professional tourist guides, although it has not been easy to carry out the program," Nyoman Kandia said. Meanwhile, the Culture and Tourism Ministry (Depbudpar) has set itself the target of enticing 7 million foreign tourists to visit Indonesia in 2010, or up from from the 2009 target of 6.5 million tourists.

VP opens OVOP conference in Bali

The Jakarta Post, Jakarta | Sat, 11/14/2009 10:07 AM

Vice President Boediono will open an international conference on government-sanctioned “One Village One Product” program (OVOP) in Nusa Dua, Bali on Saturday morning.

Boediono's opening of the 6th in international conference on OVOP , which also features an exhibition, marks his second working visit after his inauguration as vice president.

The OVOP program, originally proposed by the Indonesian Chamber of Commerce and Industry (Kadin), aims to discover hidden opportunities to boost the country's industrial competitiveness, including searches for regions home to natural resources suitable for development, referred to in the studies as core competencies.

The government and Kadin expected there would be around 80 regions throughout the nation found to be eligible for the program.

Kadin said included in the potential for development were cassava and fish products, traditional medicine and herbs, textiles and pottery, metal crafts and paper products.

Ministry opens 1,500 civil servant vacancies for athletes, coaches

The Jakarta Post, Jakarta | Sat, 11/14/2009 11:43 AM

State Ministry for Sports and Youth Affairs has open around 1,500 vacancies in regional offices across the archipelago for athletes and coaches.

“The main qualification is a gold medal winner in a National Games,” Wafid Muharram, secretary of the ministry, said Saturday as quoted by kompas.com.

The maximum ages to apply for the vacancies are 35 years old for athletes and 40 for coaches, much more lenient that standard civil servant qualification, he said.

Last year, the ministry opened around 800 vacancies in the same program, but only have of them were filled.

The Indonesian Sport Council (KONI) has been working to provide post-playing career employment options for athletes.

Many notable athletes, especially in the past when prize winnings were small and sponsorship was rare, have faced a difficult life when they retired.

Paper giant to withdraw from Indonesia rainforest destruction

www.chinaview.cn 2009-11-13 20:33:28

JAKARTA, Nov. 13 (Xinhua) -- Finnish global paper giant UPM-Kymmene planned to stop purchasing pulp from Asia Pacific Resources International Holding Limited (APRIL), which has involved in rainforest destruction in Riau province of Indonesia, Green peace said here Friday.

The decision comes following a move by dozens of Green peace activists from around the world who chained themselves to escavators in a logged peat land forest the province, demanding the United States to take more actions to end deforestation. The activists are now being detained by the police.

Greenpeace campaigner for Southeast Asia Bustar Maitar said that UPM, which supplies products like photocopy paper to global markets including the United States, China, Europe and Australia, admitted that APRIL's pulp "comes from a very delicate environment."

"It is reported that the firm would begin to cancel its contract with APRIL," Maitar told Xinhua over phone.

"The plan indicated a very positive move by UPM to help protect Indonesia's rainforests and carbon rich peatlands, the destruction of which leads to climate change, mass species extinction and causing poverty in forest dependent communities," he added.

"If international companies start distancing themselves from this environmental disaster, the call to end global deforestation here and around the globe will only get louder and louder."

Greenpeace estimates the contract to be equal to over 4 percent of APRIL's total pulp production, worth over 55 million U.S. dollars annually.

The campaigner said that APRIL had involved in forest destruction as the firm still had not licencing completely and operating at the peatland area in which its depth was more than 3 meters.

Besides, the firm had started operation before completing assessment of the location of the highly conservative forest.

"This is illegal under Indonesian law," said Maitar.

Editor: Lin Zhi

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China`s Huwaei to set up training centers in Indonesia

Antara News, Friday, November 13, 2009 15:10 WIB

Chinese telecommunication giant Huawei plans to establish two major training centers and a Research & Development (R&D) center here, a senior Huawei official said on Thursday.

Huawei tech Investment President Director Ma Yue said that the planned training centers are expected to graduate 1,500 credible Indonesian telecommunication technicians each year.

According to Ma, Huawei has supplied telecommunication equipment for 9 mobile telecommunications operators operating in Indonesia to develop their GSM (Global System for Mobile) and Code Division Multiple Access (CDMA) telecommunication networks.

RI to purchase trainer, attack aircraft from Russia, China

The Jakarta Post, Jakarta | Fri, 11/13/2009 8:58 AM

Indonesia will purchase new trainer/light attack aircraft from Russia and China as part of an effort to revitalize its primary defense system, says newly sworn-in Air Force chief of staff Vice Marshal Imam Safaat.

He said the new jets, consisting the Yak-130 from Russia and the FTC-2000 Mountain Eagle from China, would replace the squadrons of British Hawk Mk-53 jets and American OV-10 Bronco.

The Air Force has 20 Hawk Mk-53, and eight turboprop-driven OV-10 Bronco aircraft that are around 30 years old.

“We plan to replace them in the next couple of years. We have done feasibility studies for the purchases, and will propose them to the government soon,” Imam said after the handover ceremony at Halim Perdanakusumah Air Force Base in East Jakarta. Imam replaced Marshal Subandrio.

It would be the first time Indonesia purchases warplanes from China and the second from Russia after the United States embargoed the supply of spare parts for its F-5E Tiger II and F-16 Fighting Falcon jet fighters and C-130 Hercules transport planes in 1999 due to human rights abuses mainly East Timor.

The Indonesian Military (TNI) spokesman, Rear Marshal Sagom Tamboen said the reshuffle in the Air Force leadership was conducted to improve its professionalism through the regeneration of leaders.

Sagom added the new Air Force chief was assigned to boost the country’s air defense system by increasing the quality of aircraft and equipment.

“It is our mission to reduce accidents during training and operational work conducted by Air Force personnel to zero,” he said.

Iman said the military aircraft had to be replaced soon because the Air Force had used the existing planes for more than 30 years.

Imam said further that the Indonesian Military had also planned to replace the old F-5E Tiger II jets.

“We expect to replace them by 2013,” he told The Jakarta Post.

Imam declined to mention the prices of the new aircraft, saying he had not yet discussed it with the government.

“They are expensive,” he said, adding the aircraft would be purchased using foreign aid.

Indonesia bought three Sukhoi fighter jets in February this year to strengthen aerial defense following a series of deadly accidents caused by outdated military aircraft.

The country now has seven Sukhoi-type fighters, all of which were purchased from Russia through a credit scheme. Three more are expected later this year.

Indonesia purchased the seven fighter jets from Russia through the seven-year credit scheme at a total price of US$335 million, but does not have to start making payments for five years.

TNI chief Gen. Djoko Santoso said the Air Force would focus on increasing the operational quality of its basic equipment and maintenance.

“That includes the improvement of the Air Force’s radar systems and air control power,” he said.

Sagom said the Air Force would also focus on improving personnel welfare, despite its limited budget, in addition to increasing safety standards for its primary weaponry defense system.

Sagom added that 70 percent of the Air Force’s budget was geared toward the welfare of personnel. The other 30 percent was for the maintenance of equipment and spare parts.

He said the Air Force budget was expected to increase to between Rp 5 trillion ($531.6 million) and Rp 7 trillion next year, up from Rp 4 trillion this year. (nia)

US Aims to Double Number of Indonesian Guest Students

The Jakarta Globe

US Ambassador to Indonesia Cameron Hume has announced his support for an initiative to double the number of Indonesians studying in the US within the next five years.

The "Take Control" initiative will increase Indonesian students' access to free advisory services from AMINEF EducationUSA, a State Department-supported network of educational advising centers around the world tasked with assisting international students.

"I endorse this initiative to encourage Indonesian students to study in the United States. They should take control of their future, and we can help to make it happen," Ambassador Hume said.

Almost 7,700 Indonesian students are currently studying in the US. To double that number, EducationUSA said it would send advisors out to mobile centers around the country.

Visitors to the booths will be able to talk to an adviser and get help on how to select a university, apply for a course of study, assess financial needs and apply for a visa.

More information is available at www.educationUSA.or.id.

Govt to auction Rp2 Trillion bonds Nov 17

Antara News, Thursday, November 12, 2009 22:43 WIB | Economic & Business

Jakarta (ANTARA News) - The government will offer rupiah-denominated state bonds of Rp2 trillion in an auction on November 17, a Finance Ministry official said.

Proceeds from the issuance of the bonds, all of them reopening of the existing issues, will be used to meet part of the financing target in the 2009 state budget, the ministry`s director general of debt management, Rahmat Waluyanto, said in a statement on Thursday.

The bonds up for auction will be series FR0031, FR0040 and FR0052.

The fixed rate bonds series FR0031 due on November 15, 2020 will be issued at a coupon of 11 percent to be paid every May 15 and November 15.

The fixed rate bonds series FR0040 to be issued at a coupon of 11 percent will mature on September 15, 2025. Coupon payments will be made every March 15 and September 15.

The fixed rate bonds series FR0052 due on August 15, 2030 will be issued at a coupon of 10.50 percent to be paid every February 15 and August 15.

"The government has the right to sell the three types of bonds at higher or lower prices than the indicative amount," Rahmat said.

Thai Banpu plans $466 mln investment, wary on outlook

Reuters, By Pisit Changplayngam, Wed Nov 11, 2009 5:41am EST

BANGKOK, Nov 11 (Reuters) - Banpu BANP.BK, Thailand's largest coal miner, said on Wednesday it planned to invest $466 million over the next six years, but warned lower average selling prices in 2010 would mean just single-digit revenue growth.

"Most of our investment money for existing projects will be spent on coal rather than the power business," Chief Executive Chanin Vongkusolkit told reporters, referring to spending plans starting next year.

Of the total investments, $189 million would be for coal mining projects in Indonesia, $22 million for its coal business in China and the rest for its 40 percent owned Hongsa lignite power plant project in Laos, Chanin said.

Under the plan, the company aimed for total coal production in China and Indonesia to rise to 33.5 million tonnes, he said, without giving a comparison.

Banpu is also the fourth-biggest coal miner in Indonesia with five coal mines, and has three in China. It is now on the lookout for new assets in the region, mainly in Indonesia and Australia.

"We are quite capable of getting help from financial institutions -- with cash flow and assets worth about 50 billion baht and debt to equity of 0.24, say -- if we were to win any bidding or acquire new businesses," he added.

Banpu shares closed up more than 3 percent on Wednesday at their highest in nearly a month at 462 baht, while the broad market .SETI was up 1.4 percent.

On Tuesday it reported a higher-than-expected 22 percent rise in third-quarter net earnings after the market closed, helped by higher coal sales from Indonesian mines and gains from coal swaps.

LOWER COAL PRICES

Chanin said the company's 2010 revenue would grow by a single-digit percentage from this year's expected 57 billion baht ($1.71 billion) as it expected average coal prices in 2010 to fall below the $72 a tonne targeted this year.

Sixteen analysts polled by Thomson Reuters I/B/E/S forecast revenue of 54.8 billion baht, down 1.6 percent from an expected 55.7 billion baht this year.

"Sales in 2010 will still grow in volume, but having said that, average sale prices would be lower as we'll be expecting more low-quality coal, which would weigh on sales growth," he added.

At the end of September, Banpu's coal reserves stood at 581.4 million tonnes, down 1.1 percent from the previous quarter.

Its average coal selling price in the third quarter was $69.49 per tonne, down 17 percent from a year earlier.

Chanin said he expected fourth-quarter sales of about 16 billion baht, but Banpu would see "less net profit" compared to its 3.81 billion baht ($114.4 million) in the third quarter due to a maintenance shutdown at its 50 percent owned BLCP plant, along with a fall in average selling prices. ($1= 33.30 Baht) (Writing by Ploy Ten Kate; Editing by Alan Raybould)

Major Indonesian Seaports Now Open Around the Clock

The Jakarta Globe, Putri Prameshwari

Jakarta's Tanjung Priok and three other ports around the country will now operate 24 hours a day. (Photo: Antara)

Four major domestic seaports will now be open 24 hours a day, seven days a week as part of a government plan to increase trade, Transportation Minister Freddy Numberi said on Wednesday.

“This is to boost our export and import activities,” he said.

The four ports are Tanjung Priok in North Jakarta, Belawan in Medan, North Sumatra, Tanjung Perak in Surabaya, East Java and Soekarno-Hatta in Makassar, South Sulawesi.

The move comes after the Indonesian Chamber of Commerce and Industry (Kadin) and other business organizations called for working hours to be extended at the country’s ports earlier this month.

Operations at the four ports would be open not only for ship docking but also for customs and immigration activities, Freddy said. “This way, if a cargo ship arrives at 2 a.m., it can immediately be served,” he said, adding that it could also avoid vessels from docking for too long as a result of delays.

Freddy said he hoped service would be improved if ports were open for 24 hours.

Sunaryo, director general of maritime transportation at the Transportation Ministry, said the infrastructure to open the seaports around the clock was adequate.

“All we have to do is coordinate with customs,” he said.

The hardest part would be to provide 24-hour manpower to load and unload vessels, Sunaryo said. “That should be synchronized with the Manpower Ministry,” he said.

On the other hand, Sunaryo said, the Transportation Ministry’s initiative could create more jobs, especially for people living near the ports.

The plan is currently in a test phase and would be officially implemented next January, Freddy said.

Richard J Lino, chairman of state-owned port operator PT Pelindo II, said it would take a long time to get all relevant agencies, including customs, immigration, and quarantine services, to coordinate their work activities at the seaports.

“They need time to adjust,” he said.

The government also wants to establish an international-standard port in Indonesia to function as hub port for the wider region.

PT Pelindo II has been pushing for Tanjung Priok to be that port. Lino said he hoped Tanjung Priok would be ready to operate as an international hub port by 2014.

Renovating the port, he said, would take five years and cost up to Rp 7 trillion ($749 million).

An archipelago of more than 17,000 islands, Indonesia relies heavily on sea transportation. Millions of people and tons of cargo are delivered every day using big vessels and small ships.

Pelindo II manages ports across Indonesia, including in Banten, Palembang in South Sumatra as well as Teluk Bayur seaport in West Sumatra, and Sunda Kelapa port in North Jakarta.

HSBC Launches Yuan Trade Settlement Services In Indonesia

The Wall Street Journal

HSBC Holdings PLC (HBC) launched trade transaction services in Indonesia using the Chinese yuan, Xinhua news agency reported Wednesday, citing a senior HSBC official.

Vincent C. Sugianto, head of trade and supply chain HSBC Indonesia, said the service can only be conducted between Chinese firms authorized to make such transactions and their counterparts in the Association of Southeast Asian Nations, according to the report.

He said HSBC will provide various yuan transaction services in Indonesia, including trade financing, currency exchange between the rupiah and yuan, and export/import financing.

HSBC now offers yuan trade settlement services in six Asean countries, according to the report. The others are Malaysia, Thailand, Singapore, Vietnam and Brunei, the report said.

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Merpati prepares fund for leasing new planes

Nani Afrida, The Jakarta Post, Jakarta | Wed, 11/11/2009 3:15 PM

Merpati Airlines, revealed Wednesday that the company will lease seven ATR-72 aircraft in the first quarter of 2010, costing US$80,000- $90,000 each per month, and that it planned to further lease a total of 22 planes by 2011.

“We will start with 7 planes in the first quarter of 2010 first. Hopefully by the beginning of 2011 we will lease all of 22 planes,” Merpati President Director Bambang Bakti told reporters at the office of state ministry for state enterprises in Jakarta.

He said that the company had allocated a budget for leasing those planes, which are from France, at about Rp 1 billion per aircraft per month.

“We also have prepared Rp 3-5 billion as additional an budget per aircraft for training for pilots and co-pilots, technicians, stewardesses, including maintenance and flying approval,” Bambang said.

Merpati is targeting to increase its routes from 150 to 200 routes using the new armada. The company also plans to create a hub, which will provide flying services to remote areas for its consumer.

Indonesia's Toba Pulp to invest $150 mln in capacity

Reuters, Tue Nov 10, 2009 6:32am EST

JAKARTA, Nov 10 (Reuters) - Indonesian pulp producer, PT Toba Pulp Lestari (INRU.JK), plans to invest $150 million to increase the capacity of its factory in the next two years, corporate secretary Anwar Lawden said on Tuesday.

The firm aimed to increased the capacity of its factory in North Sumatra in the next two years to 300,000 tonnes from 165,000 tonnes by adding machinery, Lawden said by telephone.

"We are still reviewing our options but we plan to seek loans from financial institutions including banks."

Toba Pulp, which has a stock market value of $26.2 million, currently produces dissolving pulp -- the basic material for rayon fiber -- and bleached kraft pulp to make paper.

The firm aims to sell 50,000 tonnes of dissolving pulp and 162,000 tonnes of bleached kraft pulp in 2009, with most exported to China.

It will move to only producing dissolving pulp starting from January 2010, with a planned capacity of 200,000 tonnes in 2010. (Reporting by Tyagita Silka; Editing by Ed Davies)

Foreign Businesses Frustrated by Blackouts in Jakarta

The Jakarta Globe, Dian Ariffahmi, Yessar Rossendar & Teguh Prasetyo

Foreign manufacturers are joining the growing list of industries unhappy with Jakarta’s ongoing blackouts, saying frequent work stoppages are gouging into their production and endangering millions of dollars in overseas investments.

A 28-member delegation of Japanese business leaders complained about the outages to Industry Minister MS Hidayat on Monday.

The group was from the Kansai Economic Federation, also known as Kankeiren, which represents thousands of firms from Japan’s Kansai region that operate in Indonesia.

Hidayat said the Kankeiren delegation told him the blackouts in the city were burdening their business activities.

“They didn’t mention which companies are suffering from this power problem, but they represent all business players and investors who put their money here,” Hidayat told reporters after the meeting.

“I told them I am sorry, it is also affecting local industry. But I assured them that electricity infrastructure is among the top priorities in the [Yudhoyono administration’s] 100-day program. So it will be fixed as early as possible,” Hidayat said.

A senior official with PT Perusahaan Listrik Negara, the state electricity utility, said last week that Jakarta, Bekasi and Tangerang would continue to experience rotating four-hour shifts of power rationing through the end of the month.

PLN is struggling to meet demand for power in Greater Jakarta since a fire at its central facility in Cawang, East Jakarta, in September. The blaze triggered mechanical problems with other generators on the grid this month because they were overloaded.

Eddy Widjanarko, chairman of the Indonesian Footwear Association (Aprisindo), said shoe factories were operating at only between 50 to 60 percent capacity because of the unstable power supply.

Eddy said Aprisindo was meeting on Monday with seven Korean footwear producers to discuss the blackouts.

In a desperate move to guarantee a power supply, “the seven South Korean firms, which own factories in Gunung Putri, Bogor, in West Java, are now considering setting up their own coal- and gas-fired power generators,” Eddy said.

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