RI, South Korea set up Green Business Center

Antara News, Fri, July 29 2011

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Jakarta (ANTARA News) - Indonesia and South Korea have set up a Green Business Center (GBC) through which they cooperate to develop green cooperatives, small- and medium-scale enterprises.

Syarief Hasan. (ANTARA)

Indonesia`s minister of cooperatives and small and medium businesses (UKM) Sjarifuddin Hasan said after the dedication of the GBC here on Friday that the institution was a follow-up of an agreement made by the Indonesian ministry of cooperatives and UKM with the Small and Medium Business Administration of the Republic of Korea.

"The GBC is located on the sixth floor of SME Tower Main Building on Jalan Gatot Subroto Kav 94," he said.

He said the GBC is an incubator for boosting cooperation in the development of green technology-based industries for cooperatives and UKM.

"Right now there are already 13 tenants joining in the GBC namely 10 from South Korea and three from Indonesia," he said.

Sjarifuddin hoped the GBC would in the future become the center of entrepreneurship development, transfer of technology especially green technology and boost business partnership between Indonesian and South Korean small and medium businesses.

On the occasion of the Administrator of Small and Medium Business of the Republic of Korea, Kim Dong-Sun, said the GBC would become one of the institutes that would develop green small and medium industries in Indonesia.

"We have the technology which is ready to be implemented while Indonesia has rich natural resources," he said.

He hoped the GBC would encourage transfer of technology to Indonesia for the development of eco-friendly small and medium businesses and further develop business partnership between Indonesian and South Korean small and medium businesses.

In the cooperation agreement South Korea expressed readiness to exchange experience in policy and program development to empower eco-friendly small and medium industries.

Editor: Priyambodo RH

SBY opens coal-fired power plant, pushes for more alternative energy

The Jakarta Post, Jakarta, Fri, 07/29/2011

President Susilo Bambang Yudhoyono on Friday said the proportion of geothermal energy in the second phase of the 10,000 megawatt project should be augmented.

"Do not just [adjust the contributions] from coal-fired power plants," the President said in Palembang, South Sumatra, on Friday at the groundbreaking of the Mulut Tambang Banjarsari coal-fired power plant (PLTU) in Lahat.

He added that increasing the contribution from geothermal energy power plants should be increased as part of efforts to rely more on renewable energy, kompas.com reported.

WB lends $300m for twin geothermal plants

Rangga D. Fadillah, The Jakarta Post, Jakarta, Wed, 07/27/2011

The World Bank has agreed to lend US$300 million to state geothermal producer PT Pertamina Geothermal Energy (PGE) to build two geothermal power plants in Ulubelu, South Sumatera, and Lahendong, North Sulawesi.

The bank said in a press statement sent to The Jakarta Post on Wednesday that the loan package came from the International Bank for Reconstruction and Development and Clean Technology Fund, with a contribution of $175 million and $125 million, respectively.

“The World Bank is pleased to be able to support Indonesia’s efforts to positively impact global climate change. This important project is the first approved Clean Technology Fund operation in the East Asia Region,” said Stefan Koeberle, World Bank country director for Indonesia.

“We appreciate the World Bank's support for PGE to contribute to efforts to utilize clean energy in meeting Indonesia’s growing power demand," said Abadi Poernomo, president director of PGE. "This assistance will contribute to PGE's goal of becoming a world-class geothermal company."

Upon completion of the project, by 2015, there will be approximate additions of 110 megawatts of electricity in Ulubelu and 40 megawatts in Lehendong. This will displace an equivalent capacity of coal-based power generation, which will reduce local and global environmental pollution.

2m poor elementary students to get scholarships

The Jakarta Post, Jakarta, Wed, 07/27/2011

The National Education Ministry says it has allocated Rp 762.2 billion (US$89.9 million) this year for BSM-SD scholarships for about 2.04 million poor elementary school students nationwide.

Students from first to fifth grade will be entitled to the scholarships, which are worth Rp 360,000 per student and will be disbursed between July and December.

Ministry director for elementary schools Ibrahim Bafadal said Tuesday in Jakarta the scholarships were meant to help poor parents purchase stationery, uniforms and other school-related items for their children.

School operating costs, meanwhile, are covered by the School Operational Aid (BOS) funding program, Ibrahim said.

The numbers of students to be granted scholarships in each municipality/regency has been set based on several indicators such as poverty levels and geographical conditions, he added.

“Each municipality and regency will then select schools that will receive BSM-SD scholarships. Then a team will be sent to ask for a list of the students that have been nominated to receive the scholarships at each school,” Ibrahim said as quoted by kompas.com.

Rp 1t Port Planned for Remote West Papua

Jakarta Globe, Faisal Maliki Baskoro, July 26, 2011

The proposed $118 million West Pacific Port in West Papua
would have  a capacity 30 times greater than the existing
Sorong Port. (JG Photo/Yudhi Sukma Wijaya)

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State port operator Pelindo II plans to start building a new port in Sorong, West Papua, as soon as next year, as part of government efforts to reduce logistical and shipping costs to the remote eastern region.

Richard Joost Lino, president director of Pelindo II, said on Tuesday that the company had formed a consortium with major shippers including Samudera Indonesia, Meratus Line, Salam Pacific Indonesia Lines, and Temas Line to build the port, which will cost Rp 1 trillion ($118 million).

“Pelindo will act as the leader in the consortium, and we will contribute 30 percent [of the cost],” he said. “We will put the project up for tender [for contractors] later this year while construction will start early next year.”

West Pacific Port, which will replace the existing Sorong Port, will be able to handle 750,000 twenty-foot equivalent units (TEUs) once it is completed in 2013, Richard said.

Sorong Port can handle 25,000 TEUs, while cargo traffic to the region averages 700,000 TEUs a year, he said.

West Pacific Port, Richard added, would also serve as a regional port for traffic to and from Papua New Guinea and the Bismark Islands, East Timor, Darwin in Australia, New Zealand and New Caledonia. The new port is also expected to halve distribution costs to Papua, he said.

Pelindo II operates 12 seaports across the archipelago, including the busiest, Tanjung Priok, in North Jakarta.

Analysts have said that Indonesia must boost the development of infrastructure such as roads, airports and seaports to create more jobs and achieve its target of 7 percent economic growth by 2014.

Juniman, an economist at Bank Internasional Indonesia in Jakarta, said the government’s plan to build the port in Papua was the right move to reduce bottlenecks in shipping.

“The project will help create jobs and boost economic growth,’’ he added.

Pelindo II is also bidding on the rights to operate a new port in Jakarta.

It signed a Rp 11 trillion loan with Bank Mandiri, the country’s largest lender, on Tuesday. That standby loan would be used to finance the first phase of its North Kalibaru Port project in North Jakarta, if Pelindo were to win the rights to build the port.

The Transportation Ministry has not yet closed the tender for the project, which will cost an estimated Rp 20 trillion.

“The new port is vital because the busiest port in Indonesia will exceed maximum capacity this year, and this will cause higher logistic costs and longer loading and unloading times,” Richard said.

North Kalibaru Port would add between 4 million and 6.5 million TEUs of cargo capacity to Tanjung Priok Port — which has a maximum capacity of 5 million TEUs.

Richard said the North Kalibaru facility, which would span 3.5 square kilometers and include an oil and gas terminal, could be completed in 2017.

Pelindo posted a 30 percent increase in profit last year to Rp 1.2 trillion and, according to Richard, is on track to meet its target of Rp 1.6 trillion in profit this year.

Indonesia is Google’s ‘Regional Focus’

Jakarta Globe, Shirley Christie, July 26, 2011

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Google, the world’s largest Internet-search provider, may make a “huge investment” in Indonesia to take advantage of the country’s enormous market potential, a government official said.

The Internet giant would focus its Southeast Asian investment on Indonesia, Gita Wirjawan, chairman of Indonesia’s Investment Coordinating Board (BKPM), said on Monday.

Google executive chairman Eric Schmidt said “Google wants to invest, and based on their calculation it would be bigger than its previous offices in Southeast Asia,” Gita told a press conference in Jakarta.

“I do not know yet whether it is going to be $100 million or more, but the investment would definitely be bigger than [the amount spent] in Singapore and Malaysia,” he said

Google could set up operations in Indonesia, Gita said, but the company needed to study the potential for revenue from advertising in the country and the establishment of a data center.

Those matters are being discussed with the Communications Ministry, he said.

Google’s global brand and innovative reputation means the company’s presence would encourage other investors to do business in Indonesia, Gita said.

BKPM forecasts total foreign and domestic investment hitting Rp 240 trillion ($28 billion) this year, up 15 percent from 2010.

Gatot Dewa Broto, a spokesman for the Ministry of Communications and Information Technology, told the Jakarta Globe the ministry welcomed Google’s plan and has not imposed any requirement for the company to establish a data center locally.

Schmidt met Indonesian Vice President Boediono last Friday to inform him of the company’s plan to open a representative office in Indonesia by next year.

At an entrepreneurial summit in Bali, Schmidt said Indonesia would have an “Internet explosion” that would change the country for the better.

“There are 50 million small businesses in Indonesia. Just numerically those will be the engine of growth for the future economy,” he said.

Other foreign companies have already established local businesses to appeal to Indonesia’s Internet users. Yahoo has been operating in Indonesia since early last year.

Indonesia has about 40 million Internet users and is home to Facebook’s second-highest number of subscribers.

Global research firm Frost & Sullivan found Indonesia had 194 million wireless subscribers at the end of last year, representing a penetration rate of about 81 percent. About 80 percent of mobile users are using Internet-enabled hand-held devices.

Indonesian advertisers spend less than 2 percent of their budgets on online promotions, meaning the online advertising industry here has significant space for expansion.

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Jakarta’s Soekarno-Hatta International Airport to Get $1.37b Face-Lift

Jakarta Globe, July 26, 2011

Mobile Brigade (Brimob) officers conducting search operations in an
 attempt to clean up Soekarno-Hatta International Airport on the outskirts of
 Jakarta recently. The substandard airport is to get a Rp 11.7 trillion
($1.37 billion) overhaul, the Ministry of Transportation said on Tuesday.
(JG Photo/F. Raharjo)  

    

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Jakarta’s substandard Soekarno-Hatta International Airport is to get a Rp 11.7 trillion ($1.37 billion) overhaul, the Ministry of Transportation said on Tuesday.

Herry Bhakti Gumay, director general of aviation transportation at ministry, was quoted by Detik.com as saying the revamp would be entirely funded by State-owned airport operator Angkasa Pura II.

“Construction will start in 2012 and in 2014, Soekarno-Hatta will become a world-class airport,” Herry told the news portal.

Changes included completing development of Terminal 3 by 2013, renovating terminals one and two, building a new cargo terminal by 2013.

Other improvements include an automated transportation system linking the terminals as well as a shopping mall and a hotel.

Herry acknowledged that Soekarno-Hatta was now incapable of coping with the number of passengers, which continue to grow.

“Currently the airport’s capacity is designed for 22 million passengers [annually] but in reality, the number of passengers has grown to 44 million,” Herry said.

The plan to redevelop the airport was first announced by Vice President Boediono in May.

Vice Presidential Spokesman Boediono’s said it was hoped that the number of passengers would increase to 62 million people by 2014.

“That will mean increasing the apron capacity from the current 125 aircraft to 174 aircraft.

Nissan to invest $320 mn in Indonesia plant

Yahoo/AFP, 26 July 2011

Japanese Nissan Motor said Tuesday it plans to invest $320 million in Indonesia to more than treble production capacity at its West Java factory and set up a new engine assembly plant nearby.

"We plan to increase production capacity at the plant from 50,000 vehicles per year to 180,000 vehicles for each year by 2013," Nissan Motor Indonesia vice president of sales and promotion Teddy Irawan said.

"This September we'll complete the first phase of the capacity expansion to increase production from 50,000 units to 100,000 units. In the next phase, we'll raise capacity from 100,000 units to 180,000 units," Irawan said.

Indonesia, Southeast Asia's largest economy, is seeking billions of dollars in foreign investment to help it achieve target of 7.0-percent growth by 2014.

The archipelago aims to attract private investment of up to $465 billion by 2025.

Indonesia may get U.S. help in going green

UPI.com, July 25, 2011 

DENPASAR, Indonesia, July 25 (UPI) -- Indonesia could get millions of dollars in financial aid during the next several years for a sustainable and green economy, the U.S. State Department said.

The U.S. Department of Energy in May examined the potential for investing in oil, natural gas and renewable energy in Indonesia. Both governments discussed the possibilities during talks in Bali between U.S. Secretary of State Hillary Clinton and her Indonesian Foreign Minister Marty Natalegawa.

The State Department said Indonesia under a Millennium Challenge Corp. compact could get around $600 million during the next five years for investments in environmentally sustainable green prosperity.

Both sides said they were working on completing a second agreement on forest conservation before September. The State Department said it planned to contribute around $20 million toward that agreement.

"I think both Secretary Clinton and I feel ever more confident that the comprehensive partnership between our two countries are in a good state, and that we are actually further deepening and strengthening our collaboration and partnership," said Natalegawa.

Over 500 Indonesian students head to the Netherlands

The Jakarta Post, Jakarta | Mon, 07/25/2011

Over 500 Indonesian students will leave for the Netherlands in pursuit of higher education, according to the Dutch Embassy in Jakarta on Monday.

“Through education, I am optimistic that the bilateral relationship between the two countries will be improved,” Dutch Ambassador to Indonesia Tjeerd F. de Zwaan said in a press statement as quoted by Antara news agency.

The statement says that the students include recipients of Dutch government-sponsored scholarships, namely StuNed, the Netherlands Fellowship Program and the Huygens Scholarship Program.

There are also recipients of Erasmus Mundus and Ford Foundation scholarships as well as those sponsored by the Indonesian Communications and Information Ministry, National Education Ministry and National Development Planning Ministry.

Data from Nuffic Neso Indonesia shows that 65 percent of the students will be pursuing Master's degrees while 28 percent are in undergraduate programs, Antara reported.

On Saturday, Zwaan, Nuffic Neso Indonesia director Marrik Bellen and the Indonesian Foreign Ministry director for Western Europe, Dewa Made Juniarta Sastrawan, officially bid the students farewell in an event in Jakarta, the statement said.

Chinese state-owned company to build ferronickel industry in Kalimantan

Antara News, Sat, July 23 2011

Kotabaru, South Kalimantan  (ANTARA News) - Chinese state-owned company Dafeng Port Group plans to set up a ferronickel industry in Kotabaru, South Kalimantan with a production capacity of 200 million metric tons a year.

The president director of Dafeng Port Group Co. Ltd., Ni Xiangrong, said here on Saturday the Dafeng Port Group Co.Ltd. has successfully developed an integrated economic zone in China and plan to build a ferronickel industry and its support industries in Kotabaru.

"Why it is Kotabaru. It is because Kotabaru is relatively conducive and rich of natural resources and has quite good infrastructure," he said.

Besides a ferronickel industry Dafeng Port Croup Co.Ltd. also plans to build a coal-powered electricity plant with a capacity of 150 megawatt.

The company also plans to build a vocational school to prepare skilled workers, workshops and other supporting industries.

"At the initial stage Dafeng Port Co. Ltd. will invest around US$240 billion," he said.

He said he had already conducted coordination with the local administration with regard to license and other administrative requirements.

He said he was glad he had received a serious response from Kotabaru district head Irham Ridjani who had said he was ready to cooperate with and support Dafeng Port Group with regard to the plan.

He said Dafeng Group would cooperate with local partner PT Sebuku Iron Lateritic Ores (SILO) with regard to nickel raw materials and coal fuel supply and other supporting facilities.

PT Sebuku Iron Lateritic Ores` operations manager Hendrik said all Dafeng Group`s plans would be realized if PT SILO`s plan to build a coke and other industries in Kotabaru is completed.

"Right now PT SILO is still dealing with an intervention lawsuit from the Kotabaru administration in connection with PT Arutmin`s lawsuit against a mining permit in Laut Island," he said.

PT SILO is still waiting for the ruling of the Supreme Court over the case..

"Hopefully it will come soon and the Kotabaru administration wins so that PT SILO`s plan to build a bridge and an industry in Kotabaru could immediately realized," he said.

Editor: Priyambodo RH

South Korea Tobacco Firm Takes Over Indonesian Company

Jakarta Globe, July 23, 2011

Seoul. South Korean tobacco company KT&G said Thursday it had bought a controlling stake in Indonesian firm Trisakti to tap into one of the world's biggest markets.

KT&G on July 14 signed a deal to buy a 60 percent stake in Indonesia's sixth-largest tobacco firm for 140 billion won ($132.6 million), the company said in a statement.

Trisakti sold three billion sticks of cigarettes last year, KT&G said, citing a confidentiality agreement for its refusal to give more details of the deal.

The Southeast Asian nation of some 240 million people has one of the world's highest smoking rates with almost 70 percent of men aged over 20 indulging.

KT&G sought to benefit from Trisakti's sales networks and production of kretek, a clove cigarette popular among Indonesian smokers, the Maeil Business Newspaper quoted a senior executive as saying.

"We saw Trisakti's business potential due to its share of more than 90 percent in the local kretek market," it quoted KT&G executive Kang Cheol-Ho as saying in a meeting with investors on Wednesday.

KT&G, a former state--run monopoly once known as Korea Tobacco and Ginseng, was privatised in 2002. It has about 60 percent of South Korea's tobacco market.

AFP

Chrysler Unveils $100m Indonesia Plan

Jakarta Globe, Faisal Maliki Baskoro, July 22, 2011

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US automotive giant Chrysler is planning to spend $100 million in the next three years to expand its business in Indonesia, capitalizing on the fast-growing demand for premium cars, a company executive said on Friday.

The Detroit-based Chrysler will use the funds to open 18 dealerships across the country, said Ferial Fahmi, president director of Garansindo Inter Global, the sole licensed distributor of Chrysler cars in Indonesia.

“Since 2009, we have spent $10 million to open five dealerships across Jakarta, Surabaya, and Bali. We want to have 23 dealerships across Indonesia in the next three years,” he said .

Chrysler may also be looking to open a factory in Indonesia, he said, but did not elaborate.

Speaking on the sideline of the 19th Indonesian International Motor Show, Ferial said the expansion was aimed at boosting Chrysler’s market share in the premium segment in Indonesia. “We’re hoping we can become one of the top two brands in the premium segment,” he said.

In Indonesia, Chrysler plans to sell brands including the Chrysler 300C, Cabriolet Sebring, the Dodge Journey and Jeep models Wrangler Sahara, Wrangler Rubicon and Patriot. The brands are all completely built-up units.

According to the Indonesia Car Industry Association (Gaikindo), an estimated 5,000 premium cars were sold last year. The segment is currently dominated by European car makers, including BMW and Mercedes Benz.

Ferial said that Garansindo Inter Global was on track to reach its sales target of 700 units this year.

Meanwhile, Panggah Susanto, director general for manufacturing industry at the Industry Ministry, said Chrysler was considering opening a factory in Southeast Asia.

“Meeting with Peter MacKenzie [Chrysler’s Southeast Asia regional manager] on Thursday, he said the company was looking to build a manufacturing base in Southeast Asia,” Panggah said. “Indonesia is one of the countries they are eyeing.” No further details were provided on the development of a manufacturing plant.

Industry analysts welcomed plans by Chrysler and other global automotive producers to consider setting up manufacturing plants in Indonesia as a show of confidence in the automotive industry in the country. Car makers ranging from Indian low-cost manufacturer Tata Motors to premium brand BMW have stated an interest in expanding their business here.

It was revealed on Thursday that Tata had launched a feasibility study into the notion of opening a factory to produce its Nano model in Indonesia.

Astra Daihatsu Motor, the sole distributor of products from Japanese firm Daihatsu, has announced a Rp 2.1 trillion ($246 million) investment plan to build an 80-hectare factory in Karawang, West Java, to raise annual output to 430,000 units.

The BMW group has announced it would be spending Rp 100 billion to double its capacity, while Suzuki has announced an $800 million expansion over the next two years.

As many as 32 authorized sole license holders and 227 automotive-related industries are participating in the motor show at Jakarta International Expo in Kemayoran.

AirAsia to Move Base to Jakarta

Jakarta Globe, A. Lin Neumann | July 22, 2011

Tony Fernandes, Group CEO of AirAsia speaks during a joint company
 press conference with AirAsia in Tokyo, Japan, on Thursday. AirAsia has
 chosen Jakarta to be its regional headquarters in an effort to be seen as a
Southeast Asian airline rather than just a Malaysian one.
(EPA Photo/Everett Kennedy Brown)   

       

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Tokyo. AirAsia has chosen Jakarta to be its regional headquarters in an effort to be seen as a Southeast Asian airline rather than just a Malaysian one.

The region’s largest low-cost airline plans to open its base in the capital at South Jakarta’s Equity Building in October, group chief executive Tony Fernandes told the Jakarta Globe on Thursday. 

It plans to take advantage of easy access to the Asean secretariat in advance of the “open skies” agreement that will go into effect in 2015.

That agreement will lower barriers for air travel between the region’s capitals.

Asked why he chose to move the fast-growing airline’s principal corporate base to Jakarta from Kuala Lumpur, Fernandes said: “Asean is based in Jakarta, and Indonesia will be the largest economy in Asean in times to come … And I like it there.”

Fernandes, who is Malaysian, said he had already bought a home in Jakarta within walking distance of the new office. “I don’t like the Jakarta traffic,” he said.

The Equity Building is in the Sudirman Central Business District, near the Indonesia Stock Exchange (IDX). According to aviation experts, AirAsia’s relocation to Jakarta highlights the country’s growing importance in the region’s aviation sector.

“This will be great for our aviation industry,” said Dudi Sudibyo, an aviation industry analyst in Jakarta. “This will push us to be better.”

To match AirAsia’s ambitious strategy, the Indonesian government will have to continue to improve infrastructure to accommodate more passengers flying into and around the country, said Bambang Ervan, a Transportation Ministry spokesman.

“This is very positive, we welcome AirAsia’s plan,” he said. “It shows that AirAsia, one of the world leaders in the aviation industry, has confidence in Indonesia’s strong growth.”

The Indonesia National Air Carriers Association (Inaca) forecasts passenger growth at 10 percent to 15 percent this year.

Central Statistics Agency (BPS) data showed that air traffic in Indonesia grew 22 percent to 53.4 million passengers in 2010 on the back of demand from the middle class for domestic flights. 

That is higher than the 9 percent average increase recorded by Asia-Pacific carriers, according to data from the International Air Transport Association.

“Indonesia is among very few countries that managed to record strong growth in air traffic last year,” Bambang said. “The lack of available airlines compared to population and geographic conditions is only a sign that there’s a lot of opportunity here.”

Fernandes was in Tokyo for the announcement of AirAsia Japan, a new joint venture with Japan’s largest carrier, the ANA Group, to launch Japan’s second budget airline next year.

He confirmed his airline’s recent order for 300 Airbus A320neos. The deal, originally for 200 planes, was increased with an option for 100 more. It was the largest single aircraft order until Wednesday, when American Airlines ordered 460 Airbus and Boeing aircraft in a $38 billion deal.

Fernandes played down concerns raised by some analysts about the possible debt implications of such a deal, saying the company was cash rich, with a turnover of more than $4 billion last year, and operated as a group with a profit margin of about 20 percent.

Google to open representative office in Indonesia

The Jakarta Post, Jakarta, Fri, 07/22/2011

Google executive chairman Eric Schmidt said that the company intends to open a representative office to expand its internet business in Indonesia.

The statement was made during a meeting with Vice President Boediono on Friday.

According to vice president spokesman Yopie Hidayat, as quoted by kompas.com, in the one-hour meeting Schmidt stated that the representative office in Indonesia would be ready before 2012.

Yopie said that the multinational corporation investing in internet search, cloud computing and advertising technologies wanted to develop programs to connect Indonesian small and medium sized enterprises with foreign buyers.

He added that Google had been involved in serious talks with the Communications and Information Technology Ministry regarding its business plan and would soon prepare a memorandum of understanding with the government.

USAID to Inject $1m Into Neglected Research Sector

Jakarta Globe, Ismira Lutfia, July 15, 2011

A lack of opportunities in Indonesia has prompted about two
million local scientists to seek employment abroad. 
(Antara Photo/Anis Efizudin) 

The Indonesian scientific community has welcomed a $1.1 million research grant from the United States as a much-needed shot in the arm, but scientists say more domestic support is needed.

The funding, to be channeled through a new USAID project dubbed Partnerships to Enhance Engagement in Research, was announced during a 10-day visit by Bruce Alberts, a special US science envoy to Muslim-majority countries, which ended on Tuesday.

The initial funding will be made available for Indonesian researchers to participate in US National Science Foundation research projects with American scientists.

Walter North, director of USAID in Indonesia, said the grant would finance joint research projects between Indonesian and US scientists, which the foundation previously did not fund.

“We would like to encourage more collaboration between US and Indonesian scientists through this financing,” he said.

North added that the grant was expected to support up to 50 joint research projects over the next two or three years.

He said there were many ways to make the funding available, including through the Indonesian-American Kavli Frontiers of Sciences Symposium, organized by the Indonesian Academy of Sciences (AIPI), the US National Academy of Sciences and the US Department of State.

The symposium, which Alberts attended, brought together 70 leading young Indonesian and American scientists last weekend in Bogor to discuss opportunities in their fields. The scientists’ presentations highlighted major research challenges, methodologies and limitations to progress at the frontiers of various disciplines.

In addition to affording Indonesian and American scientists the chance to share their research, the symposium provided an important way for researchers to develop stronger relationships in the interests of future collaboration.

“It was one of the ways to make researchers eligible for the research grants,” North said. “We want to help Indonesia to become a leader in science, as science can help to overcome the challenges that Indonesia faces.”

Ibnu Maryanto, a researcher from the Indonesian Institute of Sciences (LIPI), welcomed the news, citing a dearth of domestic funding for research and development. However, he also warned that research findings could end up benefiting the United States more than Indonesia.

“From a research and development point of view, it’s a good opportunity to enhance our knowledge, but we must also keep in mind that there is no such thing as free [research] funding,” he said on Friday.

Ibnu said developed countries were increasingly looking to tropical countries for research and development projects, largely because of the abundance and availability of biodiversity resources.

“There are plenty of biodiversity resources here that they can develop for various industries, such as pharmaceuticals, biofuels and even biological weapons,” said Ibnu, who is one of the country’s leading bat experts, or chiropterologist.

Despite his cautiousness, Ibnu has benefited from National Science Foundation research projects, having received a research grant this year for a five-year project on transboundary bat migration within Southeast Asia, in which he cooperated with scientists from around the region and the United States.

Ibnu also criticized the administration of President Susilo Bambang Yudhoyono for showing little interest in cultivating a culture of research and development in the country.

He said the sector was robust during the rule of President Suharto, when B.J. Habibie, who would later succeed the strongman, served as minister of research and technology.

“There was a clear correlation between a good R&D environment and an increase in exports,” he said.

Data from the World Bank and Unesco, the UN’s scientific organization, in 2006 showed that Indonesia’s R&D funding was less than $1 billion, or 0.1 percent of its gross domestic product. That put Indonesia far behind neighboring countries such as Thailand, which spent 0.6 percent of its GDP on research, Malaysia (0.7 percent) and Singapore (2.2 percent).

The decline in the research and development sector in Indonesia has led to an exodus of scientists seeking better opportunities abroad, where many have made their mark on the global stage.

According to the National Education Ministry, there are roughly two million Indonesian scientists working as professionals, researchers and academics around the world.

Alberts, who met with various stakeholders in the Indonesian scientific community during his visit, urged Indonesian government officials to invest more resources in basic science research.

$1m grant up for grabs to develop multimedia

The Jakarta Post, Jakarta | Fri, 07/15/2011

Ford Foundation, in cooperation with Wikimedia Indonesia, ICT Watch and the Alliance of Independent Journalists (AJI), announced Friday that it would be awarding grants worth US$1 million (Rp 8.5 billion) to 30 people or organizations that come up with best practices in innovative ideas to improve media conditions in Indonesia.

“We want to improve Indonesian media through innovative and novel ideas,” Ford Foundation media program officer Heidi Arbuckle said at the program’s launch in South Jakarta on Friday.

Arbuckle said her foundation wanted to try a different way in handing grants.

She said that some foundations were not too open to the public during the selection of grant recipients.

The first selection will be held on Aug.1 to Sept.15, while the announcement of grant recipients will be made on Nov.7.

More information can be found at www.ciptamedia.org. (drs)

Red Cross to build blood bag factory

The Jakarta Post, Jakarta | Fri, 07/15/2011

The Indonesian Red Cross (PMI) plans to build a blood bag factory in order to supply blood bags throughout the country.

PMI signed a memorandum of understanding (MoU) with PT. Ocean Media Link, on Friday, to construct the factory.

“In the past, we’ve been importing blood bags. By building our own factory, we can meet the demand for blood bags on our own," PMI chairman, Jusuf Kalla, said as quoted by tribunnews.com

The commissioner for PT. Ocean Media Link, Tatat Rahmita, said that the factory was still in undergoing an assessment process.

It is expected to cost Rp 70 billion (US$8.2 million) to build.

“We expect the factory to start operating in 2012 and it will be capable of producing between 10 million and 12 million blood bags annually," he said.

PMI, according to Tatat, would only need between 3 million and 4 million per year, therefore the surplus can be exported to ASEAN markets.

During the agreement signing, PMI also launched 100 new Red Cross mobile minibuses for the collection of blood donations.

“Currently, we only have 20 minibuses but we expect to deliver 100 more units over the coming seven months,” Kalla said.

Pertamina Plans Rp 2t Geothermal Push

Jakarta Globe, Antara & JG | July 14, 2011

Pertamina Geothermal Energy, a unit of state oil and gas company Pertamina, plans to increase its capital spending by nearly 20 percent next year as part of a push to expand its business, a company executive said.

The company wants to boost its capital expenditure to Rp 2 trillion ($234 million) in 2012 from this year’s Rp 1.7 trillion, the company’s corporate secretary Adiatma Sardjito, said in Jakarta on Thursday.

It plans to build several geothermal power plants, including two 55-megawatt power plants in Ulu Belu, Lampung. The total cost for the two plants is estimated at Rp 385 billion, Adiatma said.

“There will be an additional 110 megawatts of power capacity next year,’’ he said.

The company has been building seven geothermal power plants this year, which are expected to add a combined power capacity of 292 MW.

Adiatma said the company would finance the projects with its own cash and soft loans from overseas financial institutions, including the Japan International Cooperation Agency and the World Bank.

He said most of the company’s projects were located in North Sulawesi, known for its abundant geothermal reserves. The company expects its geothermal capacity to increase to 2,033 MW in 2014 from the current 1,194 MW, Adiatma said.

Meanwhile, Indonesian company Supreme Energy expects operations to start in 2015 at its geothermal power plant in Lampung, which will produce 220 MW of power, said Sutono, secretary of South Lampung district.

He said the exploitation of geothermal energy would produce electricity equal to the power produced by the power plant in Tarahan, also in Lampung, and increase the power supplies in the province, which sits in the southern stretch of Sumatra Island.

The power from the plant will be sold to state utility Perusahaan Listrik Negara. Sutono said the geothermal plant would employ about 62,000 people, helping to relieve unemployment in the province.

Lampung's geothermal power plant to commence operations in 2015

The Jakarta Post, Jakarta | Wed, 07/13/2011

Lampung is expecting its first ever geothermal-fired power plant, which is currently under construction, to start operating by 2015.

Situated in South Lampung regency, the plant is projected to have a generating capacity of 220 megawatts, or double the current electricity supply for Lampung, which so far has been provided solely by a coal-fired power plant in Tarahan village in the same regency.

It is estimated that the construction project will cost a total of Rp 80 billion (US$9.36 million), South Lampung administration secretary Sutono said Wednesday in Kalianda, Lampung as quoted by Antara.

He said the company would drill in 12 locations to access geothermal energy.

Sutono also said the power plant would be operated by PT Supreme Energy Rajabasa and was expected to create thousands of new jobs, thus helping to improve the local economy.

Govt highlights renewable energy master plan

The Jakarta Post, Jakarta | Wed, 07/13/2011

According to Indonesia’s economic acceleration and expansion master plan for 2011-2015, the country needs Rp 134.6 trillion (US$ 15.7 billion) in investment to develop renewable energy resources for the next 15 years, the Energy and Mineral Resources Ministry says.

The funds will be allocated to five regions; Sumatra (Rp 25.06 trillion), Java (Rp 86.3 trillion), Sulawesi (Rp 15.77 trillion), Bali-Nusa Tenggara (Rp 2.64 trillion) and Papua-Maluku (Rp 4.83 trillion).

Supplying the public with renewable energy is a government priority, Renewable Energy and Conservation Director-General Kardaya Warnika said Wednesday.

"The funds will be used to build both infrastructure and generators,” he said as quoted by tribunnews.com.

Kardaya added that the government was seeking to increase renewable energy utilization by the public, by endorsing innovations such as solar powered street lights.

The ministry also encourages shopping centers and city malls to produce their own electricity by installing solar panels on their roof tops.

“We are blessed with sunshine throughout the year, so we should use it.

"Even a subtropical country like China is doing so,” Kardaya said.

He also added that the government was promoting biofuel development using coconut husks and jatropha.

RI to host World Batik Summit in Jakarta

Antara News, Mon, July 11 2011

 The event is expected to attract international`s interest towards batik.

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Jakarta (ANTARA News) - Indonesia is to hold World Batik Summit 2011 in Jakarta Convention Center (JCC) next September 28 - October 2, a source said.

(ANTARA/ Wahyu Putro A)

"The event is expected to attract international`s interest towards batik," Cabinet Secretary Dipo Alam said here on Monday.

Also founder of Batik Indonesia foundation, Dipo said the World Batik Summit was aimed to establish a strong networking between batik makers and lovers around the world.

Meanwhile, Trade Minister Mari Elka Pangestu said the WBS event would be participated in by 1,000 delegates from Indonesia and abroad. The delegates are coming from various background namely practitioner, academia, marketing and fashion critic.

She said the WBS would become a forum for batik makers to promote their products.

Editor: Ella Syafputri