Pertamina Kicks Off $1.4b Refinery Upgrade

Jakarta Globe, December 29, 2011

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

               

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

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

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

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

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

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

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

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

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

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

Jakarta Globe, December 28, 2011

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

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

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

Details on power plant projects as follows:

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

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

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

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

Reuters

Two ministers to facilitate geothermal projects in forest areas

Antara News, Mon, December 19 2011

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

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

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

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

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

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

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

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

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

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

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

Editor: Priyambodo RH

Indonesia Passes Land Acquisition Bill

Jakarta Globe, December 16, 2011

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

         

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Reuters

Indonesia Legislators Give Green Light to Land Bill

Reuters

PLN ready to build Jatigede hydro power plant

Antara News, Thu, December 15 2011

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

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

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

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

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

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

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

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

Editor: Heru

INDONESIA: BMW starts assembling 5-series in Indonesia

Just-Auto, Tony Pugliese, 15 December 2011

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

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

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

RI, China exploring cooperation on renewable energy

Antara News, Mon, December 12 2011

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

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

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

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

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

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

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

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

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

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

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

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

Editor: Heru

Austria opens its new ‘green’ embassy

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

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

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

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

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

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

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

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

apply in other countries.

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

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

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

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

Geothermal drilling in Solok Selatan scheduled in 2012

Antara News, Tue, November 29 2011 

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Illustration of geothermal project.
(ANTARA files/Ujang Zaelani)

Padang Aro, West Sumatra (ANTARA News) - The geothermal drilling in Solok Selatan, West Sumatra, which will be utilized as power plant by PT Supreme Energy was scheduled in 2012.

"Under the contract, the geothermal drilling in Solok Selatan will be carried out in the first quarter of 2012 with an initial plan of seven points in Pekonina, Pauh Duo sub-district," head of the Solok Selatan energy and mineral resources agency Yulian Efi said in the company of energy section chief Zilhamri said in Padang Aro on Tuesday.

Yulian said right now Supreme Energy with the assistance of the regional administration is opening 70 hectares of land which would be continued by road construction.

"We hope that in the five years of explorations, PLN would provide power smoothly," he said.

He said under the mining working area issued by the energy and mineral resources minister in 2009, the geothermal power which would be produced in Solok Selatan would reach 400 megawatts, while the geohermal area in Liki Pinangawan would reach 62,300 hectares.

In the meantime, according to the result of the initial survey by PT Supreme Energy and the Bandung Institute of Technology (ITB) in 2008, there were 30 points stretching from Balun, Koto Parik Gadang Diateh sub-district to Liki Pinangawan, Pauh Duo sub-district, of geothermal power in Solok Selatan with a capacity of 600 megawatts.

Yulian also said that PT Supreme Energy planned to produce 1,120 megawatts of power in 2014 and 2015, and 110 megawatts in the first stage. And in the following year production will reach 110 megawatts.

"Under the contract, the power which will be produced reached 2x110 megawatts in 30 years," he said.

He said in December or January 2012, the Solok Selatan administration will introduce the development of geothermal power into electric power to the general public.

Besides Solok Selatan, the potential of geothermal power in West Sumatra covers seven regencies, including Pasaman, Solok, Pasaman Barat, Limapuluh Kota, Tanahdatar, Agam or 17 points producing electricity of 1,656 megawatts.

Editor: Priyambodo RH

W. Java to open batik academy

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

The West Java Batik Foundation (YBJB) will establish a Batik Academy to develop and train young professional Batik makers.

“The West Java Batik Academy will train batik professionals to master batik skills and be ready to work in the batik industry,” the foundation’s executive director Komaruddin Hudiya said on Tuesday as quoted by Antara news agency.

The academy is scheduled to be established in 2012 with a capacity of more than 100 graduates per class. Every class will learn batik for three months and develop their own businesses.

“The batik market is still promising right now, even though the booming started in 2009. We are trying to maintain the market’s gusto for batik products by developing batik motifs from various regencies,” Komaruddin said.

He added that there had been 200 batik motifs in West Java that had been published in a batik motifs pocket book.

Iraq invites Pertamina to join bids to explore oil

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

Pertamina project.
(ANTARA/Reno Esnir)

The Iraqi authorities have invited Indonesian state-run oil firm PT Pertamina to join bids to explore oil blocks in Iraq.

Iraqi Ambassador to Indonesia Ismieal S. Muhsin said Pertamina stood a good chance of exploring oil in Iraq, but it first had to win the related bids.

“We hope Pertamina will take part in the next bids,” Muhsin said Tuesday in Jakarta, as quoted by kontan.co.id.

Kontan earlier reported that Pertamina had previously declared its readiness to explore Iraq's Western Desert 3 and Tuba blocks.

In April 2002, Pertamina signed a contract to explore and develop the Western Desert 3 block, which is located 300 kilometers southwest of Baghdad and is estimated to contain three billion barrels worth of oil reserves.

The contract stipulated that should Pertamina manage to find oil during three years of geological and seismic studies worth US$24 million in the block, the cooperation would be extended for another two years. The contract’s implementation, however, was disrupted with the US invasion of Iraq that took place in 2003.

Pertamina is also reportedly eyeing the Tuba block, which produces 150,000 barrels of oil per day. To operate the block, however, Pertamina should first compete with three companies: namely, India-based Oil Natural Gas Corp., Algeria-based Algerian Sonatrach and China-based Chinese Petroleum.

Related Article:

Pertamina welcomes Iraqi offer to manage oil and gas block

Lippo Group to Build Six Hospitals in 2012

Jakarta Globe, Ivan Dasa Saputra, November 23, 2011

A doctor and his assistant perform simulations at the Siloam
 Cancer Hospital MRCCC Semanggi, Jakarta. The Lippo Group
 is planning to build six more hospitals next year.
(JG Photo/Safir Makki)

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The Lippo Group is planning to build six international standard hospitals in five Indonesian regions next year.

“Every hospital should be built with international principles, using international standards, equipment and service,” James Riady, CEO of the Lippo Group, said on Wednesday.

James said that while it is not relevant to get international accreditation for all hospitals, the hospitals will be built with international standards.

“International accreditation needs a high budget that might have an impact on patients,” James said.

The six hospitals will be built in Makassar, Manado, Bali, Palembang and Jakarta with an investment of Rp 300 to Rp 500 billion ($33 million to $55 million) each.

As part of the Lippo Group’s mission to serve all sections of society, Siloam Hospital, owned by the Lippo Group, is increasing space for a third class ward.

“We will keep on building hospitals because we’re hoping to be the main player in the health industry,” James said.

The Jakarta Globe is affiliated with the Lippo Group.

Sharp to invest $1 billion in solar tech in Indonesia

The Jakarta Post, Jakarta | Sun, 11/20/2011

Japanese electronics giant Sharp has sealed a deal at the ASEAN Summit in Bali to invest US$ 1 billion in solar cell technology in Indonesia, according to a top government official.

“Sharp has assessed that our country has been blessed with sunlight throughout the years. This has a great potential that is waiting to be explored,” Energy and Mineral Resources Minister Jero Wacik said on Saturday as quoted by tempointeraktif.com.

Sharp currently has a pilot project in Thailand with 160 hectares of solar cell panels that generate up to 73 megawatts for 23 US cents per kilowatt-hour.

“We’ll discuss the details in upcoming meetings,” he said.

RI, US agree on $600 mln cooperation project

Antara News, Fri, November 18 2011

US President Barack Obama and Indonesian President Susilo Bambang

 Yudhoyono shaking hands following statements to the press after their

 meeting on the sidelines of the Association of Southeast Asian Nations (Asean)

 and East Asia summits in Nusa Dua on Indonesia’s resort island of Bali on Friday.

(AFP Photo)

 Indonesian President Susilo Bambang Yudhoyono and US President Barack Obama announced the agreement in a joint statement to the press following their bilateral meeting at the Bali Nusa Dua Convention Center (BNDCC).

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Nusa Dua, Bali (ANTARA News) - Indonesia and the United States have agreed on a US$600 million cooperation project under a so-called "Millennium Challenge Corporation Compact" in support of environmentally friendly and sustainable development in the former.

Indonesian President Susilo Bambang Yudhoyono and US President Barack Obama announced the agreement in a joint statement to the press following their bilateral meeting at the Bali Nusa Dua Convention Center (BNDCC) here on Friday.

"Indonesia is thankful to the US for the Millennium Comprehensive Partnership worth US$600 million to support environmentally friendly development," President Yudhoyono said.

The cooperation was designed to assist Indonesia in developing clean energy, food and public health programs as well as in modernizing goods and service procurement process.

President Yudhoyono said the Indonesia-US relations had been improving since the two nations signed a comprehensive partnership agreement a few years ago.

In the political, legal and security fields both nations had been engaged in various activities such as dialogs, military education and training including the US grant of F-16s to Indonesia, he said.

Both nations also had signed a trade and investment agreement to increase investment and trade ties between the two nations, he said.

President Yudhoyono also expressed Indonesia`s wish to become a US strategic partner in building democratic cooperation which pays respect for human rights.

Meanwhile, President Obama said his visit to Bali for the 6th East Asia Summit was a concrete example of the US focus on the Asia-Pacific region to get better involved in the regional organization.

He shared Yudhoyono`s view that relations between the two countries had been improving since the signing of the comprehensive partnership agreement.

He said the signing of a commercial agreement between Boeing and Lion Air at Grand Hyatt Hotel in Bali earlier in the day was an example of the ever increasingly closer cooperation between the two nations in the economic field.

Under the agreement, Lion Air is planning to buy 200 Boeing planes for at least US$2 billion.

Editor: Heru

Related Article:

Indonesia’s Lion Air to Buy 230 New Boeing 737s in $21.7b Deal

Indonesia’s Lion Air to Buy 230 New Boeing 737s in $21.7b Deal

Jakarta Globe, November 17, 2011

Indonesia’s Lion Air has agreed to buy 230 Boeing 737 aircraft with a
 list price of $21.7 billion, the White House said on Thursday, touting the
sale as the US firm’s biggest-ever commercial order. (Antara Photo/File)   

     

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Nusa Dua. Indonesia’s Lion Air has agreed to buy 230 Boeing 737 aircraft with a list price of $21.7 billion, the White House said on Thursday, touting the sale as the US firm’s biggest-ever commercial order.

The deal was announced soon after President Barack Obama touched down in Bali for the East Asia summit on the final leg of a regional tour partly aimed at drumming up markets for US products at a time of slow growth back home.

The White House also highlighted other deals, some already announced, including the sale of eight Boeing 777 planes to Singapore Airlines and an order for Sikorsky Black Hawk helicopters by Brunei’s Ministry of Defense.

Officials said the Lion Air order was for 201 Boeing 737MAX aircraft and 29 Next Generation 737ER planes.

“The President will join a signing ceremony between the representatives of Boeing and Lion Air on November 18,” a White House statement said.

“With 230 airplanes at a list price of $21.7 billion, this order represents the largest commercial airplane agreement ever for Boeing.”

Aviation Week reported on November 4 that Lion Air, Indonesia’s largest privately-held carrier, was seeking new narrow bodied aircraft and was considering 737s and the European-made Airbus 320.

The White House also said that the deal included options for a further 150 aircraft valued at $14 billion, which could put the eventual deal at $35 billion.

Officials said that the deal would support 110,000 American jobs at Boeing and at suppliers throughout 43 American states, at a time of 9.0 percent unemployment which is clouding Obama’s 2012 reelection prospects.

The White House also highlighted another big Boeing deal, the sale of eight 777-300ER jets to Singapore Airlines worth $2.4 billion which will support a further 11,000 US jobs. That contract had already been made public.

Indonesia’s Garuda Airlines meanwhile has signed a contract to buy 50 CFM56 General Electric engines worth $1.3 billion, the White House said..

And Sikorsky will sell Brunei 12 Blackhawk S-70i helicopters worth $325 million, the White House said, adding that the total value of all the deals was $25 billion.

Agence France-Presse

Indonesia's Lion Air has placed the largest ever commercial airplane
order in Boeing's history, valued at $21.7 billion. (AFP Photo) 

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Indonesia’s Lion Air Roars with Record Boeing Order

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Adhi Karya to build 100-floor tower in Jakarta

Antara News, Tue, November 15 2011

 The tower is a mega project with a height of 600 meters in the Kemayoran complex, Jakarta.

Jakarta (ANTARA News) - After the rights issue in the first semester of 2012, PT Adhi Karya Tbk (ADHI) planned to build a 100-floor tower in Jakarta, Minister of State Companies Dahlan Iskan said at his office on Monday night.

He believed that the 100-floor tower will become Indonesia`s pride considering its extreme height.

"The project will be built following ADHI`s rights issue," Dahlan said without pointing to the tower`s exact location.

He said the tower will be built by using unproductive government land. Right now the land was still under the control of the Finance Ministry, but will be handed over to ADHI to build it.

In realizing the major project, Dahlan will give ADHI the full responsibility in seeking business partners and the funds. "It appeared that the project would be realized under a corporate action, and let ADHI do all the plans and thinking," he said.

With regard to the possibility of the tower being used by state owned companies outside Java island, he dismissed, saying that the tower is a commercial project.

Previously former minister of state-owned companies Mustafa Abubakar had received the design of the tower from two senior businessmen Ciputra and Tommy Winata. And Ciputra and Tommy Winata had even offered to build the project with five and four towers.

The tower is a mega project with a height of 600 meters in the Kemayoran complex, Jakarta.

Editor: Heru

South Korea interested in ri`s renewable energy

Antara News, Tue, November 15 2011

Jakarta (ANTARA News) - South Korea is interested in making investment in the renewable energy sector in Indonesia, a deputy minister said.

Energy and Mineral Resources Deputy Minister Widjajono Partowidagdo made the remark after holding a meeting with the South Korean Ambassador to Indonesia at the Ministry of Energy and Mineral Resources (ESDM) here on Monday.

"South Korea is willing to invest in Indonesia, not only in Jakarta but also in other regions. Besides in electricity, South Korea is also interested in the renewable energy sector," he said.

He said that in the energy sector South Korea was very interested in taking part in the development of a receiving terminal storage in Belawang, Medan, North Sumatra.

"South Korea welcomes the development of the receiving terminal storage. They also are open for joining the development of the one in Semarang (Central Java). What is sure is that they will make investment as much as possible," the deputy minister said.

In the meantime, South Korean Ambassador to Indonesia Kim Yong Sun said that Indonesia was a very potential country for investment, particularly in the energy sector.

"We are willing to cooperate in the energy sector and power generation and this is part of our agenda in the ASEAN Summit in Bali," the ambassador said.

Kim said that South Korean President Lee Myung-bak will arrive in Bali during the ASEAN summit this week to hold follow up talks on the investment plan.

However, the South Korean side was not available to disclose the value of investment it would make in the renewable energy sector in Indonesia.

"Renewable energy is quite competitive with our technology," Kim said.

Besides making investment in the energy sector, the South Korean government is also interested in developing electronic industry, garment, shoe and steel industry.

Editor: Aditia Maruli

Govt targets Internet coverage on all islands by 2012

The Jakarta Post, Jakarta | Fri, 11/11/2011

The Communications and Information Technology Ministry is targeting to connect all islands in Indonesia to the Internet by 2012, according to an official.

A ministry’s expert staffer, Suprawoto, said on Friday that the ministry also planned that all islands would have broadband networks by 2016.

He said that the plans were a “follow up” to the Indonesia Informatif (Informative Indonesia) program, which has been a vision of the ministry.

“Indonesia Informatif is our effort to bring Indonesian people closer to information,” he said in a forum in Gorontalo, North Sulawesi, Antara news agency reported.

He added that the ministry hoped Indonesians would use the Internet for education and community empowerment purposes.

“People are uneducated or poor not because of their financial situation but because of a lack of information,” he said.

Suprawoto said the ministry had developed the Desa Berdering (Villages Rings) program this year, building infrastructure in 5,874 districts that gave villages access to telephones, the radio and the Internet.

“We are building the optical fiber networks on the remaining islands. It has now reached Papua,” he added.