Wednesday, February 10, 2010

Bali asked to apply non-corruption zone

The Jakarta Post, Jakarta | Wed, 02/10/2010 4:09 PM

The Corruption Eradication Commission [KPK] has asked Bali administration to apply corruption-free zone in governmental institution as a pilot project to fight corruption in the country, an official says.

KPK director Dedie A. Rachim said that public service agencies in provincial level could be designated as corruption-free zone, especially in their procurement division.

“If Bali succeeded, the good news will echo internationally. Hopefully, it would attract foreign investors,” Dedie told tempointeraktif.com on Wednesday.

Dedie credited Denpasar and Jembrana district’s effort to reduce corruption by establishing one-roof licensing agency.

Bali provincial secretary I Nyoman Yasa said that the administration is ready to start the project. (nkn)

Community Empowerment Program Reaches Out to 6.000 Villages

Tempo Interactive, Tuesday, 09 February, 2010 | 18:16 WIB

TEMPO Interactive, Semarang: The 2010 National Program for Community Self-Sufficiency and Empowerment (PNPM) has only benefitted 6.000 out of 8.000 villages in Central Java. “In the future, such a program must continue to be developed,” said Central Java governor Bibit Waluyo, yesterday. He called on the facilitators to work hard to support Central Java’s economy. The assistance ranged from infrastructure development programs to credit disbursement for the people. “Through the PNPM program, people can get facilities directly,” Bibit said.

As many as 1.009 facilitators have been trained to assist in carrying out the empowerment program at the village level in Central Java. Two facilitators will be assigned to each sub district in Central Java. The allocation for the empowerment program in Central Java for this year amounted to Rp 942 billion.

ROFIUDDIN

President celebrates Press Day

Erwida Maulia, The Jakarta Post, Palembang, South Sumatra | Tue, 02/09/2010 9:27 AM

President Susilo Bambang Yudhoyono attended an event held Tuesday to commemorate the 64th National Press Day in Palembang, South Sumatra.

Yudhoyono arrived in the city at around 9:10 a.m., after departing from Jakarta an hour earlier, and was immediately escorted to Hotel Aryaduta where the event took place.

During the event, the President will witness the signing of a ratification on press organization standards by 20 company representatives.

Yudhoyono will also witness the signing of a memorandum of understanding (MoU) on a new journalism school, the Indonesian School of Journalists, between journalism societies, the National Education Ministry, UNESCO and the local administration.

National Press Day was commemorated for the first time in 1985 and dedicated to the Indonesian Journalists Association (PWI), which was founded in 1946.

During the New Order era, the PWI was the only government-sanctioned press organization. An alternative press association critical of the government, the Alliance of Independent Journalists (AJI), was formed in 1994 and grew stronger following the reform movement that put an end to Soeharto's New Order regime in 1998.

There are now more than 20 press organizations in the country.

Related Article:

Indonesia's Journalists Set New Standards


Tuesday, February 09, 2010

Indonesia seaweed supply to RP assured

BusinessMirror, Agri-Commodities, Written by Jennifer A. Ng / Reporter, WEDNESDAY, 10 FEBRUARY 2010 19:48

INDONESIA has assured seaweed processors from the Philippines that it will be able to supply its requirements for raw seaweed in the coming years.

Dr. Victor Nikijuluw, a director of Indonesia’s Ministry of Marine Affairs and Fisheries, disclosed that Jakarta is not planning to impose a total ban on seaweed exports.

“[We are not planning to impose] a total ban; what we plan to do is manage exports,” Nikijuluw told reporters in a press briefing in Makati City late Monday night.

The Indonesian official said he is looking at three approaches to “manage exports.”

One approach, he said, is to give the license to import raw seaweed to companies that operate processing plants in Indonesia.

“[The second approach] is to give the export license to small and medium enterprises and cooperatives. This will ensure that SMEs and cooperatives benefit from the export of raw seaweed,” said Nikijuluw.

The Indonesian official said the third approach would be to implement a quota system for traders. He noted that Jakarta may implement all these strategies by 2012.

Last year Nikijuluw disclosed that Indonesia produced a total of 300,000 metric tons of raw seaweed. Of this volume, around 85 percent was exported to other markets. China cornered a significant chunk of this volume. The Philippines accounts for about 25 percent of what Indonesia exports to the world.

By 2014, Indonesia is targeting to increase raw-seaweed production to 1 million metric tons. Nikijuluw assured that the Philippines would still be able to get supply from Indonesia.

Benson Dakay, president of the Seaweed Industry Association of the Philippines (SIAP), hopes that Indonesia will not resort to a total ban on raw-seaweed exports.

“[Jakarta] wants [all raw seaweeds] to be processed before it ships out seaweed products. If Indonesia will impose a total ban, [their] farmers would surely suffer, because they will lose markets for their produce,” said Dakay, who also owns the seaweed-processing firm Shemberg Corp.

Meanwhile, Dakay disclosed that local seaweed processors are operating below capacity due to the lack of local seaweed supply.

“Our cottonii processing is only 30 percent, because there is no raw seaweed. We [currently] rely on Indonesia, Vietnam and Cambodia for supply,” he said.

The SIAP chief said the lack of local seaweed supply can be traced to the inability of farmers to get financing for their farming venture.

“In the past, [seaweed-processing companies] extend loans to farmers and if they default, companies can write off their loans. Now, we can no longer do that,” said Dakay.

Benjamin Tabios Jr., assistant director of the Bureau of Fisheries and Aquatic Resources, said the agency’s hands are practically tied because there is no enabling law that gives them the authority to finance seaweed farmers.

“Nowhere can you find in the Fisheries Code a specific language on financing for the seaweed industry,” said Tabios.

Seaweed is one of the top 10 export winners of the Philippines. In 2008 the value of seaweeds and carageenan exports reached $122 million, according to Department of Agriculture figures.

EU gets 'Euro-leaf' logo for organic food

The logo will soon appear on food packages across the EU

A new EU-wide "Euro-leaf" logo will be compulsory from 1 July for all pre-packaged organic food produced in any of the 27 EU member states.

The green logo, featuring the 12 EU stars in the shape of a leaf, will be optional for imported produce.

Existing national logos for organic food will be allowed to appear next to the new EU logo.

A German student won a competition to design the new symbol. Dusan Milenkovic got a prize of 6,000 euros (£5,254).

Some 130,000 people voted online to choose the symbol and Mr Milenkovic's entry got 63% of the overall vote. The competition was organised by the European Commission.

Monday, February 08, 2010

Car rally tours architectural landmarks for greener Jakarta

Eny Wulandari, The Jakarta Post, Jakarta | Mon, 02/08/2010 10:04 AM

Ride on: Members of Mercedes-Benz Club Indonesia convoy in "Mercedes-Benz Rally Batavia: Tribute to Indonesia" on Jl. Medan Merdeka Selatan in Jakarta on Sunday. The convoy also planted 3,000 trees along Jl. Sedyatmo and the East and West Flood Canals. JP/Wendra Ajistyatama

More than 150 vintage car connoisseurs joined the Rally Batavia II on Sunday to visit some the city’s historical spots and to witness the planting of 3,000 trees as part of efforts to make Jakarta greener.

Participants drove vintage and classic Mercedes-Benz models from 1953 to 2009 during the event, that also marked the 40th anniversary of the German carmaker’s presence in Indonesia.

“The rally was fun. We got to see places that we did not know before,” Yuniadi H. Hartono, one of the participants, said.

He added the event had also given him and other participants a chance to share with underprivileged children at the Darussa’adah Islamic Foundation by donating school equipment.

The rally began at City Hall and ended at Pintu Satu, Senayan.

During the five-hour rally, participants passed through old sites, such as the Schouburg building (now the Jakarta Arts Playhouse), Gedong Joang 45 and the National Gallery in Central Jakarta.

Apart from passing by the architectural landmarks, participants also witnessed the planting of a trembesi (rain tree) by Jakarta Governor Fauzi Bowo along Jl. Sultan Agung, South Jakarta.

Around 300 rain trees with heights of between 5 to 6 meters were planted. The same number of trees were planted along the Sedyatmo toll road while more than 2,000 trees were planted in the East Flood Canal area.

The president and CEO of Mercedes-Benz Indonesia, Rudi Borgenheimer, said the number of trees planted was the symbol of what they had achieved last year.

In 2009, the company sold 2,884 units.

“We want to continue [doing this activity] next year as part of our corporate social responsibility [CSR] program,” Borgenheimer said.

The governor said after the planting that the city parks and cemeteries agency would look after the trees.

“Some auto firms like Honda and Toyota Astra have given their support for the planting activity. I hope there will be more corporations doing the same,” Fauzi said.

South Jakarta Mayor Sahrul Effendi said that a similar planting activity would be conducted by other companies in Tebet this month.

“Apart from companies, we expect residents to plant trees around their neighborhoods,” Sahrul said.

The city administration is encouraging the public and companies to plant trees to add green space and minimize the risks of possible floods.

In 1965, more than 35 percent of Jakarta was made up of green areas, but this has been shrinking ever since. Currently, green areas in Jakarta account for only 9.3 percent of the city’s 661,000 square meters of land, far less than the target of 30 percent set by the 2007 Spatial Planning Law.

Trains from Japan to arrive in March

Indah Setiawati, The Jakarta Post, Jakarta | Mon, 02/08/2010 12:03 PM

Commuters in the city and surrounding areas will see the arrival of 10 of 40 used-electric train carriages imported from Japan in March, an official said.

“Every month, starting March, we will receive 10 carriages until June,” corporate secretary of PT KAI Commuter Jabodetabek (KCJ) Makmur Syaheran told The Jakarta Post.

The imported carriages, produced between the 1980s and 1990s, would add to the existing 386 electric trains. Makmur refused to reveal the trains’ prices.

The KCJ serves commuting routes across the Greater Jakarta area, including tracks linking the city’s main stations to Serpong, Bogor, Depok, Tangerang and Bekasi in Greater Jakarta.

Makmur said the KCJ, which has become a subsidiary of state-owned railway company PT Kereta Api (KA) since August 2008, tried to improve service quality by providing more carriages and repairing a number of train stations.

This month, he added, his company would open a bidding process for another procurement of 48 used carriages from Japan.

“We will procure carriages for electric trains every year. This is part of our effort to increase comfort quality,” he said.

With regard to the renovation of 17 train stations, Makmur said, this month it had entered the first phase, with Juanda station in Central Jakarta, for example, to be equipped with new benches.

He added that street vendors sprawling at the platform would be relocated.

Makmur said the KCJ would also develop an electronic ticketing system to many trains to curb the number of illegal passengers.

A resident of Depok Saleh Purwanto who commuted daily to his workplace in Jakarta, said he would welcome the imported used trains, saying that the news had been long awaited.

He said, however, that the additional number of trains would be meaningless if the KCJ did not improve their daily operational condition.

He said he expected on-time arrivals and departures of the electric train, but was often disappointed when faced with sudden schedule delays.

“Recently, the delay often happens Monday,” he said.

He said the delays were usually caused by train damage and troubled signals.

“If the problems are known, why doesn’t the company provide backup trains or evacuate passengers when the train stops before arriving at its destination?” he said.

Volunteer group KRLmania urged PT KAI Commuter Jabodetabek that the imported trains replaced economy-class electric trains that were unreliable.

The editorial page of the group’s website stated that PT KA should work on improving the signaling system of the electric trains, making it more reliable.

The KCJ currently manages 170 kilometers of railway lines and 56 railway stations.

It was reported that approximately 400,000 passengers from Greater Jakarta now use the trains every day, an increase from 325,000 last year. The KCJ targets to attract 1 million passengers per day by 2012. Furthermore, in 2014 it targets to carry 3 million passengers per day.

In order to improve its service, the company revealed that it would take all non-AC economy-class trains out of service and replace them with AC economy-class trains by 2011.

So far, more than 40 stations allow passengers to easily pass through without tickets.

It is common to see passengers on train roofs during peak hour. Incidents where illegal passengers were electrocuted were reported in 2009.

PRC Gets $135 Million ADB Loan for Power Plant Using New Coal Technology

Asian Development Bank (ADB) , 8 February 2010

MANILA, PHILIPPINES - The Asian Development Bank (ADB) is supporting the construction and operation of a coal-fired integrated gasification combined cycle (IGCC) power plant in the People’s Republic of China (PRC), the first such plant in a developing nation.

The ADB Board of Directors today approved a $135 million loan to build a 250-megawatt IGCC plant in Tianjin City that can generate up to 1,470 gigawatt-hours of electricity every year.

PRC is the world’s largest coal producer and consumer. Its heavy use is causing serious pollution, including sharply lowered air quality and widespread acid rain. The large coal usage is also causing global concerns due to rising greenhouse gas (GHG) emissions. In response, PRC has launched a clean coal power generation program, GreenGen, to sharply reduce pollution as well as lower the GHG emissions, with the Tianjin project being the cornerstone of the first phase.

ADB is also providing $1.25 million in technical assistance to pave the way for the second and third phases of the program which will result in a scaled-up IGCC plant fitted with carbon capture and storage technology by 2013.

Plants using IGCC technology turn coal into a synthetic gas, removing impurities, before the gas is burned in a gas turbine. It is more efficient than other clean coal technologies and emits less GHG and only a fraction of sulphur dioxide and nitrogen oxide pollutants, but its adoption has been slow due to high costs and some perceived technology complexity and risks.

The advent of IGCC technology combined with a carbon dioxide capture and storage function, however, has provided fresh impetus for its use, with studies showing that it is now the least-cost option to cut carbon dioxide emissions from coal-fired power plants by up to 90%.

“The project will demonstrate the advantages of a technology with the potential for large greenhouse gas emission reductions. Its successful implementation will bolster the confidence of investors, project developers, and policymakers leading to scaled-up IGCC power plants and their expanded deployment,” said Ashok Bhargava, Principal Energy Specialist in ADB’s East Asia Department.

To help curb risks linked to the adoption of the new technology and to keep costs down, ADB is providing a $5 million grant from its Climate Change Fund to finance direct supervision and technical support from the component suppliers during the critical initial operation and maintenance phase. It will also be used to help strengthen project management capacity and to ensure compliance with key safeguards.

As the IGCC technology reduces coal use and GHG emissions, the project is expected to be eligible for carbon credits under the Clean Development Mechanism (CDM) of the Kyoto Protocol. ADB is providing technical support to help with the CDM registration process.

ADB’s loan from its ordinary capital resources makes up 32% of the total project cost of $419.59 million. The loan has a 26-year term, including a grace period of six years, with the interest rate determined in accordance with ADB’s LIBOR-based lending facility.

The loan component is due for completion by June 2012 and the grant component by June 2015.

The remaining costs will be funded from equity contributions of $84 million, a loan of $195.59 million from a group of local banks, and the grant from ADB’s Climate Change Fund - established in 2008 to invest in projects which address the causes and consequences of climate change.

China Huaneng Group, the managing partner of the government’s GreenGen program, is the executing agency for the project.

About ADB

RI, Lebanon to organize interfaith dialog

Antara News, Monday, February 8, 2010 01:37 WIB

Jakarta (ANTARA News) - The governments of Indonesia and Lebanon will organize an interfaith dialog that will present religious leaders from both countries in Yogyakarta in the middle of 2010, an envoy said.

"This will be the second dialog of its kind organized by both nations," Indonesian Ambassador to Lebanon Bagas Hapsoro said here on Sunday.

The interfaith dialog will be attended by religious leaders and academicians of both countries. "This is interesting because in Lebanon alone there are 12 different religious groups," he said.

He said that the dialog would be held as a means of bridging the interactions and communications of religious leaders who had nowadays played an important role in building harmonious relations among religious communities.

In the dialog religious leaders are also expected to share their common experience in building and nurturing religious harmony and in establishing and increasing a new dimension in the relations between the two countries, the ambassador said.

Indonesia and Lebanon have previously organized an interfaith dialog in Beirut in late 2008 under a theme: "Promoting Interfaith Dialogue In a Plural Society."

The dialog was organized in cooperation with the Indonesian Foreign Ministry, the Indonesian Embassy in Beirut and the Dar El Fatwa of Lebanon.

RI, Turkey target US$5 billion in bilateral trade

Antara News, Monday, February 8, 2010 01:32 WIB

Jakarta (ANTARA News) - Indonesia and Turkey have set themselves a target of bilateral trade volume of US$5 billion in the coming five years, Indonesian Ambassador to Turkey Awang Bachrin said here on Sunday.

"We will try to increase the trade volume through various activities such as the publication of `Indonesia News` which contains investment and business opportunities in Indonesia, primary commodities and tourism destinations," he said.

Indonesia`s commodities whose exports to Turkey continued to increase included rubber, rubber-based products, plastic, plastic products and textiles.

These commodities have the prospect to become Indonesia`s main exports to Turkey in the future.

Indonesia in 2009 was Turkey`s 28th biggest exporter country with exports accounting for 0.7 percent of the total value of Turkey`s total imports.

Indonesia imported about 95 types of commodities from Turkey in the 2005-2009 period.

During the period the two-way trade of both nations experienced an annual growth of about 54 percent which was in favor of Indonesia.

In 2008, the volume of both nation`s trade was recorded at 2.1 billion dollars. In 2009, the trade volume however declined as a result of global economic crisis.

Sunday, February 07, 2010

RI, Japan enhancing ties through rare animal exchanges

Antara News, Sunday, February 7, 2010 08:41 WIB

Jakarta (ANTARA News) - Indonesia and Japan have been further enhancing their 51-years-old diplomatic ties by exchanging rare animals, Indonesia`s chief representative in Japan said.

"The Indonesian government has lent some rare animals to Japan as part of our diplomacy," Indonesian Ambassador to Japan Jusuf Anwar said here Saturday on the sidelines of a Foreign Ministry Working Conference.

He said in recent years the two countries had strengthened their diplomacy to support the biodiversity conservation of endangered species between the Indonesian Nature Conservation Institute (LKA-zoos, Safari parks and breeding centers) and Japanese counterparts.

The Indonesian embassy in Tokyo during 2006-2009 period had brought nine endangered species from Indonesia to Japan, namely three orangutans, one Sumatran tiger, two komodos and five proboscis monkeys under the status of conservation loan for a specified period to be introduced to Japanese society, the envoy said.

Under the conservation and breeding loan status, both countries and Japanese Nature Conservation Institute in cooparation with the Yokohama Breeding Center had successfully bred 180 Bali Starling endangered species, about 70 of them have been restored to their natural habitat in the West Bali National Park.

On the other hand, the LKA Indonesia got conservation grants of 21 endangered species from Japan, namely five Macacas, 12 penguins and four sea lions that can be bred by the Indonesia LKA.

In 2008 Indonesian-Japan ties entered the age of 50 years, the envoy said.

The signing of the Strategic Partnership for Peaceful and Prosperous Future in 2006 and the Indonesia-Japan Economic Partnership Agreement (IJEPA) in 2007 have strengthened the bilateral good relations.

BPMigas Seeks Cabotage Exemption for Some Foreign-Owned Oil and Gas Ships

Jakarta Globe, Yessar Rossendar, February 07, 2010

Upstream oil and gas regulator BPMigas is seeking to make certain high-tech foreign vessels rented by oil and gas companies exempt from restrictions on domestic shipping set to be implemented next year.

BPMigas deputy chairman Hardiono said on Friday that the regulator had asked the Ministry of Transportation for an exemption because oil and gas companies were concerned that domestic shipping companies would not be able to meet their needs for such high-tech vessels, and that this would curtail investment in the vital sector. The ships in question, rig and seismic vessels, are typically rented from foreign-owned shipping companies for six months or less.

Since 2005, the government has been gradually implementing cabotage, a ban on foreign-owned ships carrying goods between ports in Indonesia, to boost the underdeveloped domestic shipping industry.

The final phase of its implementation will come into force in January next year, requiring oil and gas companies to use only domestically owned ships.

However, Sunaryo, the Transportation Ministry’s director general of sea transportation, said the ministry was unlikely to grant any exemptions to the cabotage rules. He said there was still time for local companies to buy the high-tech vessels or for foreign shipping companies to transfer the vessels to Indonesian owners.

“I encourage the local shipping companies to buy the high-tech vessels,” Sunaryo said.

Hardiono said several oil and gas companies had expressed concern about the potential difficulties of renting high-tech vessels from domestic companies. “Two out of four investors in the Kangean oil and gas block off Madura have pulled back from their plans to invest in the block” because of their concerns, he said.

Because rig and seismic vessels are typically only used for short time periods, and are rented to companies all over the world, it would be inefficient for Indonesian shipping companies to buy them, Hardiono said. However, BPMigas supported the introduction of cabotage rules for other types of ships in the oil and gas industry, he added.

Johnson W Sutjipto the head of the Indonesian National Ship Owners Association said domestic companies did not have enough rig and seismic vessels to service the oil and gas industry.

However, he said they would invest in these vessels because of the huge potential in the oil and gas sector.

“I’m optimistic that the vessels will be available in time, so that it will not slow down investment,” he said.

Indonesia to host UN environment forum in Bali

The Jakarta Post, Jakarta | Sun, 02/07/2010 1:46 PM

Indonesia will host the 11th Special Session of the Governing Council of the United Nations Environment Program/Global Ministerial Environment Forum in Nusa Dua, Bali between Feb. 20 and Feb. 26, says a government official.

Foreign Minister spokesman Soehardjono Sastromihardjo said that President Susilo Bambang Yudhoyono will open the forum.

“Around 100 ministers and 1,200 participants of UN members, environmentalists and activists worldwide will take part in the event,” Soehardjono said in a statement as quoted by tempointeraktif.com.

Indonesia would raise ocean issues in the week-long talks to follow up the results in the World Ocean Conference, which was held in Manado, North Sulawesi last year, he added. (nkn)

Chinese investors eying three development regions in W Sulawesi

Antara News, Sunday, February 7, 2010 08:24 WIB

Mamuju (ANTARA News)- Chinese investors have been eying three development areas planned by the West Sulawesi provincial administration, deputy West Sulawesi governor H.M.Amri Sanusi said here after opening a consultative meeting of KNIP here Saturday.

He said the three development projects include hydro-power plant PLTA Karama, Mamuju, an international seaport in Belang-Belang, Mamuju, a 104 km coastal road of a width of 8 meters from West Tappalang subdistrict to Belang-Belang port, which will become a trade center in the area.

With regard to PLTA Sungai Karama, Mamuju, Korean and Chinese investors became interested in building it.

"A positive responsive to the project is still awaiting from the central government and the National Planning Development Board (Bappenas) in Jakarta," he said.

World bank funds agricultural extension centers in 18 provinces

Antara News, Sunday, February 7, 2010 09:08 WIB

Jakarta (ANTARA News) - The World Bank has funded the development of Agricultural Extension Centers (BPP) in 18 provinces which were included in the Farmers Empowerment program through Agricultural Technology and Information (P3TIP) or FEATI.

Agriculture Minister Suswono in West Java town of Cirebon on Saturday inaugurated a total of 354 BPP units, in which each unit needs around Rp350 million of fund.

"Currently condition of almost all of BPP buildings across the country turned to dump, so the houses should be reconstructed or renovated," the minister said. Thus, apart from 354 units of BPP, other 22 units will also be renovated.

According to him, in the next five years a total of 3,900 units of BPP will also be built and other 600 BPP buildings will be renovated.

In the meantime, head of Human Resources Development of Agriculture, Ito Suprapto said that the BPP buildings will be constructed in 18 districts and 68 villages.

Saturday, February 06, 2010

Farming Funding Concept Being Prepared

Tempo Interactive, Friday, 05 February, 2010 | 19:36 WIB

TEMPO Interactive, Jakarta:The government is formulating a special institution concept in the agriculture sector.

This institution will later make non-credit financing possible.

The sources come from various sectors.

The sources being considered are through leasing and shares.

”We are trying to explore all possibilities,” said Deputy Minister of Agriculture Bayu Krisnamurthi in Jakarta yesterday.

But, before the formation of the institution, the government is trying to use all alternatives, including running a warehouse receipt system and pawning commodities.

In the warehouse receipt system, farmers could use warehouses provided by the government.

In pawning commodities, farmers could buy back commodities that they pawned gradually.

At the present time, the most common funding method is credit.

The total credit in the agriculture sector up until now amounts to Rp6 trillion.

This year, the total credit subsidies channeled for agriculture amount to between Rp1.2 billion and Rp1.3 trillion.

According to the Minister of Agriculture Suswono, one of the credit system flaws currently are the regulations on collateral.

Many farmers have difficulties obtaining credit because they do not have collateral.

“We hope Bank Indonesia will privilege the agriculture sector so credits could be obtained without collateral,” he said.

KARTIKA CANDRA

Chubu Electric to Buy 700 Metric Tons of Tangguh Gas

Tempo Interactive, Friday, 05 February, 2010 | 19:42 WIB

TEMPO Interactive, Jakarta: Japanese electrical company Chubu Electric Power will buy Tangguh liquefied natural gas this year.

The shipping for Chubu will begin this year and last until 2018.

“The Minister of Energy and Natural Resources Darwin Zahedy Saleh has approved it,” said the Head of upstream oil and gas regulator BPMigas R. Priyono in a meeting with the House of Representatives Energy Commission yesterday.

Chubu has an allocation of 700,000 metric tons per year after Korea Gas Corp (gas company from South Korea) delayed its order because of the economic crisis.

Korea Gas signed an agreement to buy 1 million tons of Tangguh LNG in 2010-2012.

Priyono deemed the agreement to be the best.

“The buy-sell gas price is the highest among other gas contracts,” he said.

The remaining 300,000 metric tons of LNG for which shipments have been delayed has not been decided upon yet.

On Tangguh LNG allocation for domestic market, Priyono said there was a decision to supply 1.5 million metric tons to a power plant in Belawan, Bali.

This a diversion option from Sempra (a US Company).

SORTA TOBING

Australia signs huge China coal deal


Coal is used to generate about 80% of China's power supplies

An Australian firm has signed a $60bn (AUS$69bn; £38bn) deal to supply coal to Chinese power stations.

Clive Palmer, chairman of the company, Resourcehouse, said it was Australia's "biggest ever export contract".

Under the deal, the firm will build a new mining complex to give China Power International Development (CPI) 30m tonnes of coal a year for 20 years.

Analysts say it is further evidence of China's strong demand for resources boosting Australia's economy.

Most of China's power stations rely on coal - and demand has risen sharply in recent months after a government stimulus programme re-energised its economy.


Knock-on effects

The plan involves building a huge new mining complex in the Australian state of Queensland, and laying 500km (311 miles) of railway line to move the coal to the coast.

Resourcehouse's executive director, Phil McNamara, said the "once-in-a-century project" would include open-cast and underground mines, with construction likely to begin later this year.

The complex in the Galilee basin, to be called China First, is expected to start coal production in 2013 and will churn out some 40 million tonnes a year.

Queensland state premier Anna Bligh anticipates the project will create tens of thousands of jobs and produce multi-million dollar royalty payments for the state government.

But the lucrative Sino-Australian deal will almost certainly disappoint some environmental groups, says the BBC's Phil Mercer in Sydney.

They believe Australia's reliance on plentiful reserves of coal, both for domestic electricity generation and for export, should be reduced in favour of renewable sources of energy.

Analysts say the deal signals a thaw between the two nations, following a string of incidents in 2009 that strained relations, from the arrest in Shanghai of an Australian mining executive from Rio Tinto to the high-profile visit to Australia of Uihgur activist leader Rebiya Kadeer.

An attempt by the state-owned resources company, Chinalco, to buy into the Anglo-Australia mining giant, Rio Tinto, also ended in acrimony.

Related Articles:

PRC Gets $135 Million ADB Loan for Power Plant Using New Coal Technology

Coal companies to allocate 68 million tons for domestic market


Govt to set up three SEZs for agribusiness

Aditya Suharmoko, THE JAKARTA POST, JAKARTA | Sat, 02/06/2010 1:03 PM | Business

The government is aiming to attract less than Rp 100 trillion (US$10.6 billion) in investment through the development of three special economic zones (SEZs) producing agricultural products this year.

The three zones will be located in Medan, North Sumatra, in Dumai, Riau, and in Merauke, Papua, Vice Agriculture Minister Bayu Krisnamurthi said Friday at the Coordinating Economic Ministry.

Medan, which produces crude palm oil (CPO), may attract Rp 12.5 trillion in investment, he said. "PT Perkebunan Nusantara III will provide 800 billion in initial investment."

Dumai needs Rp 20 trillion in investment for CPO production, Rp 2.5 trillion to come from PT Wilmar International Ltd., Bayu added.

"We want to increase CPO production, and raise CPO's added value by developing downstream industries. The SEZ approach is used to make private investors interested in developing downstream industries in a zone by using existing raw materials," he said.

Indonesia wants to develop half-processed goods to be sold abroad rather than sell raw materials.

Bayu said Indonesia expects to produce 40 million tons of CPO in 2020, almost double from 20 million tons targeted this year.

Merauke needs Rp 60 trillion in investment to become a food estate, producing various agriculture products, said Bayu.

"We're preparing land of 1.62 million hectares, suitable for food estate. But we initiate by developing from 500,000 hectares. In the first year we will start from 100,000 hectares," he said.

Bayu said the government would help develop supporting infrastructure in Merauke to ensure the region is ideal as an economic zone and viable for both domestic and foreign investment.

"Merauke is still *underdeveloped* so it needs a large initial investment of between Rp 2.5 trillion and Rp 3 trillion," Bayu said, adding that 32 investors from domestic and abroad such as the Middle East, Japan, Brazil and China were interested.

Vice President Boediono said Thursday the government would closely look at spatial planning to ensure more land for agricultural use, according to the Indonesian Chamber of Commerce and Industry.

Research from the Agriculture Ministry shows Indonesia has 190 million hectares of land, 101 million suitable for agricultural use. Now 64 million hectares is used for farming.

President Susilo Bambang Yudhoyono said the government would focus on 10 strategic and key commodities to feed Indonesia and the world.

Coordinating Economic Minister Hatta Rajasa said the government would cooperate with regional governments to build infrastructure in the three zones.

"Investment appetite is high. I am positive in 2010 investment will grow," he said, adding that the government has met with representatives from Japan and the US.

According to the National Development Planning Agency (Bappenas), Indonesia has identified six economic corridors - Eastern Sumatra-Northwestern Java, Northern Java, Kalimantan, Western Sulawesi, East Java-Bali-East Nusa Tenggara and Papua - to be developed through public-private partnerships.

Each corridor has its own focus industries.

Bappenas said Indonesia would need almost Rp 2,000 trillion in investment between 2010 and 2014 for infrastructure development.

Red Cross volunteers to undergo military training

The Jakarta Post, Jakarta | Sat, 02/06/2010 6:11 PM

The Indonesian Red Cross (PMI) will select 60 volunteers for a rigorous training under tutelage of the Special Force instructors.

PMI chief Jusuf Kalla said the special training would help prepare the volunteers for humanitarian missions in difficult terrains.

“We have received offers from the Mobile Brigade, the Special Force and the Marine Corps,” Kalla told Antara on his way to Yogyakarta on Saturday.

The special physical training will be given to PMI volunteers who live in Surabaya and Jakarta. “It’s only a small team, not all the volunteers will undergo the training,” Kalla said.

The volunteers, he added, would focus on disaster mitigation works that require high-level skills. Kalla said the volunteers would be armed with the best equipment.

“We are still negotiating the cooperation offer, its technicalities and the place for the training,” said Kalla.

Russian bizmen interested in Indonesia`s mining sector

Antara News, Saturday, February 6, 2010 06:10 WIB

Jakarta (ANTARA News) - Indonesian Ambassador to Russia Awaluddin Hamid said some Russian investors were interested in investing in Indonesia`s mining sector.

"Some Russian businessmen are interested in investing in gold and coal mining," Awaluddin said at the Foreign Affairs Ministry here Friday.

A number of Russian entrepreneurs had joined the Russian Business Academy which had offered to cooperate with Indonesian entrepreneurs to run mining ventures, Awaluddin said.

He said the Russian businessmen appreciated Indonesia`s natural wealth and rapid government response to foreign cooperation opportunities.

The ambassador also urged regional government heads in Indonesia to be more pro-active in promoting their regions` potentials.

In 2009, Indonesia-Russia trade experienced an increase of 48 percent to 1.6 million US dollars, Hamid said.

"Palm oil is the most popular commodity in Russia, even the market is still asking for additional supplies," he said.

Pertamina starts explorations on two gas wells

Antara News, Saturday, February 6, 2010 06:02 WIB

Bengkulu (ANTARA News) - The state-owned oil firm Pertamina has started conducting exploration of two gas wells in Ulu Lais village, Lebong Utara subdistrict, Lebong district, Bengkulu province for the construction of Gas Power Plant (PLTG).

The PLTG is estimated to generate power for 55 Mega Watt (MW), head of the Energy and Mineral Resources provincial office, Winarkus, said here Friday at the corner stone laying function of the PLTG construction, marking that Pertamina has started doing the exploration.

"They have started carrying out the construction work and at the first phase from June to July this year, the two gas wells will be able to produce 55 MW of power, which will be distributed through the South Sumatra and Jambi interconnection network," he said.

The electric power which was produced from the two wells will be distributed through the interconnection channel with the South Bengkulu in a bid to meet the electric power demand of the region, he said.

In addition, the electric power for North Bengkulu and Mukomuko districts will be supplied through the interconncetion channel from Padang, West Sumatra.

"The installation of interconection network will be able to meet Bengkulu`s demand of electric power. We will even supply the needs of Southern part of Sumatra of the electrict power," Winarkus said.

According to him, the state-owned electricity company PT PLN will buy the power from Pertamina.

Govt to offer bonds worth Rp4 trillion on Feb 9

Antara News, Saturday, February 6, 2010 06:42 WIB

Jakarta (ANTARA News) - The government will offer rupiah-denominated bonds of Rp4 trillion in an auction next Tuesday to meet part of financing target in the 2010 state budget, the finance ministry said.

The bonds up for the auction will have a nominal value of Rp1 million per unit, it said in a statement on Friday.

The bonds are series SPN20110210, FR0031, FR0040 and FR0052. The last three bonds are the reopening of the existing issues.

The discount rate bonds series SPN20110210 will mature on February 10, 2011.

The fixed rate bonds series FR0031 carry a coupon rate of 11 percent and will mature on November 15, 2020. Payments for the coupon will be made every May 15 and November 15.

The fixed rate bonds series FR0040 carry a coupon rate of 11 percent and will mature on November 15, 2025. Payments for the coupon will be made every March 15 and September 15.

The fixed rate bonds series FR0052 carry a coupon rate of 10.50 percent and will mature on August 15, 2030. Payments for the coupon will be made every February 15 and August 15.

The statement said the bonds will be offered in an open auction using a multi-price method.

Russia to learn hajj pilgrimage management from Indonesia

Antara News, Saturday, February 6, 2010 06:35 WIB

Jakarta (ANTARA News) - The mufti of Russia`s Muslim community wants hajj pilgrimage organizers in his country to learn better ways of doing their job from Indonesia, Indonesian Ambassador to Russia Hamid Awalludin said.

"Therefore, a Religious Affairs Ministry team will go to Russia in March to give trainings on hajj pilgrimage management, including on the system, quotas, embarkation and pilgrims food provision," he said.

Russia`s mufti had chosen Indonesia as this country annually sends the largest numbers of people on the hajj pilgrimage in the world.

Currently, he said, there were 24 million Muslims in Russia out of a total population of f 128 million.

Besides, Russian bankers were also interested in studying Indonesia`s Islamic banking system , Awalludin said.

Friday, February 05, 2010

Main Indonesian Port Tanjung Priok to Get Rp2.7t Revamp

Jakarta Globe, Yessar Rosendar, February 05, 2010

State-owned port operator PT Pelindo II plans to invest Rp 2.7 trillion ($286.2 million) to improve infrastructure at Tanjung Priok port.

The investment is part of a five-year plan to modernize Tanjung Priok, the country’s main port, and cut costs in half.

Pelindo II president director Richard J Lino told the Jakarta Globe late on Thursday that the company would spend Rp 1.5 trillion on new equipment, with the rest going toward redesigning the docks and purchasing stronger cranes. Richard said the goal was to reduce the time ships were required to remain docked from three to four days currently to two days.

Richard said PT Jakarta International Container Terminal would spend Rp 1.6 trillion to improve infrastructure facilities at its adjacent terminal this year.

JICT announced in December that it had secured a $70 million syndicated loan from the International Finance Corporation, the lending arm of the World Bank, and HSBC to help boost capacity at its Tanjung Priok terminal. JICT is jointly owned by Hong Kong’s Hutchison Port Holdings and state-owned port operator PT Pelabuhan Indonesia II. Its Tanjung Priok terminal handles an estimated 30 percent of the country’s container volume.

The government has set a goal of developing an international-standard regional port. Richard is pushing for Tanjung Priok to be that port, despite its limitations. It has been hampered by limited capacity and inefficient operations, including poor road access.

Its current capacity is only 600 containers per hour, about two-thirds of the volume projected for next year.

RI demands compensation over Aussie oil leak

Lilian Budianto, The Jakarta Post, Jakarta | Fri, 02/05/2010 10:57

Indonesia will file a demand to Australia asking for compensation after the latter’s oil rig leaked in Indonesian territory in Timor Sea, says the Indonesian Ambassador to Australia, Primo Alui Joelianto.

Primo said the demand would be submitted Feb. 22 when a team led by the Foreign Ministry visited Canberra.

“We are still finalizing details to ensure the amount accurately compensates for the destruction we have encountered,” Primo told The Jakarta Post at the sidelines of an ambassadors’ on meeting in Jakarta on Thursday.

The crude oil spill in the Timor Sea occurred August last year when an oil platform in the Australian Montara oil field exploded, spilling around 500,000 liters, or about 1,200 barrels of crude oil each day.

The accident has impacted on the environment and the income and health of fishermen in East Nusa Tenggara province.

“We have a strong legal standing given the extent of damage it has caused, and may continue to cause, to our country,” Primo said. “The compensation demand has a basis in international law and it will not affect our relations with Australia.”

The Australian government said last year it would respond to the incident according to international law, including launching an inquiry into the accident. The inquiry will conclude its report in April.

“To ensure that environmental impacts from the oil spill are understood and appropriately addressed in the long-term, a robust, scientific monitoring plan has been agreed between the Australian government and the company responsible for the wellhead platform,” it said.

Australian Embassy launches short film competition on climate change

Antara News, Friday, February 5, 2010 15:27 WIB

Denpasar (ANTARA News) - The Australian embassy in Jakarta announced the launching of a short film competition themed Climate Change: What it means to you and your surroundings.

The Australian embassy in a press release in Denpasar on Friday said they are inviting junior secondary school students from Jabotabek aged 15-19 years old to send their short films of a duration of 3 to 5 minutes on all aspects of climate change.

The deadline for handing over the films had bee set on February 16, 2010. The accepted films will be announced and screened on February 24 with their winners announced during the "Study In Australia" exhibition in Jakarta on Saturday, February 27, 2010. The winners will be given an change to visit Perth for five days under the sponsorship of the "Perth Education City", where they will be introduced to the latest developments of climate changes, other techniques of making short films on studies, and technology of research.

The competition was organized under partnership with the Perth Education City, the Indonesian Nobel Foundation, and the Indonesian Climate Project.

On this, Australian ambassador to Indonesia Bill Farmer said it is important to combine important topics like climate change into our initiative.

Farmer said the competition is aimed at making junior secondary school students to become more aware of climate change issues, their causes, effects, and impacts on their daily life and efforts at reducing their impact.

In response, executive director of the Indonesian Nobel Foundation Lukman Niode said in this case the young students will see the role of science and technology in facing climate change problems.

Mike Ryan of Perth Education City said "We are very happy to be seen in this project.

The message from this competition to the students is that climate change starts with change in thoughts, so that we in a natural way wish to be seen because Perth is the right destination for the education of thoughts and the development of knowledge.

Indonesia will not develop nuclear power anytime soon: Minister

Nani Afrida, The Jakarta Post, Jakarta | Fri, 02/05/2010 3:01 PM

Energy and Mineral Resources Minister Darwin Zahedy Saleh said the government had yet to consider developing nuclear energy for electricity generation.

"We will exploit other available energy sources first," Darwin told reporters Friday.

He added that the government would remain open to study the development of any alternative energy, including nuclear energy.

Currently, the biggest energy source for power plants operated by state utility firm PT Perusahaan Listrik Negara (PT PLN) is still coal, which is estimated to reach 44 percent of the company's total energy production this year.

PLN also generates power from oil-based fuels (19 percent), biofuel (1 percent), hydro (7 percent), gas (26 percent) and geothermal (2 percent).

Garuda plans to develop secondary hubs, adds more routes

Novan Iman Santosa, The Jakarta Post, Singapore | Fri, 02/05/2010 11:21 AM

Indonesian flag carrier Garuda Indonesia plans to develop secondary hubs in Indonesian major cities in addition to its major hubs in Jakarta and Denpasar as part of its Quantum Leap program.

The secondary hubs would include cities such as Balikpapan in East Kalimantan, Medan in North Sumatra, Surabaya in East Java and Makassar in South Sulawesi, Garuda’s president director Emirsyah Satar said Wednesday.

Speaking at the Singapore Airshow in Changi, he said the secondary hubs were to generate local or feeder traffic as part of Garuda’s efforts to expand new routes to strengthen its domestic network.

Other efforts include feeds to and from international routes, and domestic hub by-pass routes for mature markets, such as the Medan-Surabaya route, without stopping over in Jakarta.

“We also plan to develop flights from all provincial capitals to Jakarta,” he told reporters.

Garuda is aiming to increase the frequency of flights covering existing high density networks.

Emirsyah said the Indonesian domestic market still had room to grow in the world’s largest archipelago with some 230 million people.

“The domestic market is about 40 million passengers so there is still plenty of room to grow,” he said.

“Especially now that we have regional autonomy in which each region has more freedom to handle its own affairs.”

Garuda recorded 1,333 departures per week in 2008 and aims for 2,702 departures per week by 2014.

On international routes, Garuda had 338 departures in 2008 and plans for 1,222 per week in 2014.

Emirsyah said the airline plans to expand routes to include Hong Kong, India and ASEAN countries as well as opening European and American routes.

Garuda will fly to Amsterdam as of June 1 with other cities being considered, including Frankfurt, London and Paris as well as Los Angeles.

Emirsyah said Garuda would still focus on the Asia Pacific region saying it was where the economic activities were taking place nowadays.

Emirsyah also said Garuda was pursuing full membership of global airline alliance arrangements.

“We have support from KLM and Korean Air for membership of the SkyTeam alliance,” he said.

Garuda also aims to increase its fleet of aircraft from 54 in 2008 to 116 by 2014.

The airline will use Boeing 737-800 New Generation for domestic and regional routes, Airbus 330-200/300 for medium-haul and Boeing 777-300 ER aircraft for long haul routes.

PLN to build special coal terminal

Antara News, Friday, February 5, 2010 07:12 WIB

Pandeglang (ANTARA News) - State power company PT PLN will build a special coal terminal in Labuan subdistrict, Pandeglang regency, for the supply of coal to PLTU Labuan, unit 2.

"PT PLN has already submitted a plan for the special coal terminal, which is currently still under discussion," head of the Pandeglang cleaning and zoning agency D Hasahatan said here Thursday.

The discussion covers matters relating to development in close harmony with government policies of central and regional level, port development and optimizing the utilization of zoning and integrating local, regional and national transformation.

He also said that the master plan in the making needs to cover territorial waters and land zoning on the basis of the aspects and parameters of nature, operations, facilities, equipment, and type of cargo.

"The master plan also needs to be flexible to support development and environmental aspects," he said.

According to the National Zoning Plan, part of Banten province is covered by a certain area which gets priority in development, namely the Cilegon industrial estate, Tangerang within Jabodetabek (Jakarta, Bogor, Debok, Tangerang and Bekasi), classified as a fast growing area.

The Soekarno-Hatta international airport as a national gate, port of Bojonegara as international port which is integrated with Jakarta`s Tanjung Priok of Jakarta.

The same is also true with Sunda Bay which is an international lane linked to the Indian Ocean and the South Chinese Sea.

PLTU Labuan, unit 2, in Labuan subdistrict, Pandeglang regency, Banten province, inaugurated by President Susilo Bambang Yudhoyono on January 28, 2010, needs coal to move its two turbines.

The power plant has a capacity of 300 x 2 megawatts (MW) and was built to meet the power supply shortage in Java and Bali power grid.

Member of Commission VII of the House of Representatives Irna Narulita Dimyati has asked to prioritize Banten province in getting power supply from PLTU Labuan.

"The PLTU is a national project, but as it is located in Pandeglang, it is only reasonable that Banten has the priority for power supply from the power plant," Irna said here Saturday.

Of the total number of people of Banten, only 250 thousand families are enjoying electricity.

Thursday, February 04, 2010

PGN allocates Rp 3.4t for gas blocks acquisitions

Nani Afrida, The Jakarta Post, Jakarta | Thu, 02/04/2010 7:46 PM

State gas distributor PT Perusahaan Gas Negara (PGN) has allocated Rp 3.4 trillion (US$ 363.8 million) this year to acquire several gas blocks it needs to provide more gas for its receiving terminal in North Sumatra, a PGN director says.

“[PGN] has allocated Rp 3.4 trillion to buy new gas blocks, the entire amount of which will be taken from the company’s internal budget,” PGN president director Hendi Prio Santoso said Thursday after signing an MoU for a joint venture with state oil and gas company Pertamina.

PGN reportedly has plans to build a $1 billion Liquefied Natural Gas (LNG) receiving terminal in North Sumatra, which is expected to operate in 2012.

“Our spending is only for the starting budget. In fact if it needs more capital, the figure will be up to five times more, or Rp 15 trillion,” Hendi said, adding that in order to achieve gas supply stability the company would invest some of the funds it gained from the downstream sector to strengthen its upstream sector.

“Our main problem is we do not have enough gas to distribute. We only provide around 65 of our capacity. By purchasing new gas blocks we will not need to rely on gas producers,” he said.

Balikpapan to Build 80 MW Power Plant

Tempo Interactive, Thursday, 04 February, 2010 | 13:42 WIB

TEMPO Interactive, Jakarta:The Balikpapan City Government, East Kalimantan, will inaugurate a 80 MW Power Plant.

This power plant construction could resolve Balikpapan’s electricity deficit.

“The power plant will be soon inaugurated at Batakan,” said Balikpapan mayor Imdaad Hamid today.

According to Imdaad, the power plant is built to supply a need of 92 MW of electricity in Balikpapan.

The project is included in the development program of 10,000 MW of power plants in East Kalimantan.

When in use, Imdaad said, the Balikpapan power plant will join with the Mahakam System belonging to state-owned power firm PLN.

“This power plant will reduce the electricity deficit for Balikpapan residents,” he said.

The East Kalimantan PLN Mahakam System still suffers a 20 MW deficit to fulfill a peak load of 200 MW.

As a consequence, PLN have to alternate electricity blackouts in Balikpapan, Samarinda and Tenggarong.

SG WIBISONO