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.

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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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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.

Indonesia Works To Secure Lead in "Ring of Fire" Geothermal Market

Renewable Energy World, By Ivan Castano, Contributor , November 2, 2011    

Jakarta, Indonesia -- Indonesia is aggressively moving to build up its geothermal industry with plans add as much as 9,000 MW of installed capacity by 2025. However, industry observers say the Southeast Asian country's government must do more to attract foreign investment if it wants to achieve that target.

"The tenders are out there, they just need the investors to come in," says Paul Brophy, president and chief executive of geothermal consultancy GES, which is working with the Indonesian government to help boost foreign investment and develop the geothermal industry. "So far, some 20 to 30 concessions have been issued so there is still lots of room for new companies to come in and develop the resources."

Industry observers say Indonesia, with the world's highest number of active volcanoes, has the greatest geothermal potential in the so-called Ring of Fire volcanic region straddling the country as well as New Zealand, Philippines, Japan and the Eastern part of Russia. Of all those countries, Indonesia, Philippines and Japan have the strongest development potential, observers say.

However, Indonesia has more volcanic "hot spots" (some 265) and a more aggressive development scheme than the other countries. Developers are using these hot spots to drill holes that can produce steam from volcanic energy. So far, Chevron is the leading foreign developer in the sector but others including Indian industrial conglomerate Tata, Shell, Canada's Raser Technologies and Australia's Origin Energy are also looking to set up geothermal plants.

Investment Challenge

Brophy said the biggest stumbling block in the way to Indonesia's development dream is a dearth of foreign investment as the government does not want to finance the 9,000-MW build-up, estimated to cost $30 billion, on its own.

To do this, the government recently issued a law that would allow foreign developers to pursue their own projects as long as an Indonesian player receives a five percent stake in them. To meet this requirement, international developers must set up consortiums that include at least one Indonesian company, Brophy explained, adding that he thinks that the law will boost investment. This is because before, foreign companies were mostly restricted to partner with state energy group Pertamina if they wanted to build a geothermal project in Indonesia.

"They don't need to partner with Peternina anymore. They can go on their own as long as an Indonesian player has at least five percent equity in the project," adds one industry observer.

Jennifer Derstine, a renewable energy analyst at the U.S. Department of Commerce's international trade mission, agrees that the government is working to attract more international players. She adds that when the department of commerce launched a geothermal trade mission two years ago, the investment framework banned foreign companies from pursuing small geothermal projects on their own. However, that is now allowed and is expected to bolster interest from U.S. and other foreign companies to roll out projects.

"The law had reserved smaller-size development permits of geothermal plants under 10 MW for Indonesian companies. Now, the market is open to U.S. geothermal developers and investors," says Derstine.

"Uncompetitive" Tariffs

However, echoing other views, she says tariffs are still too low to make geothermal projects competitive.  Brophy says Jakarta is also working to address this issue. State electricity company PLN recently established a U.S. $0.097 feed-in tariff per kilowatt-hour (kWh) for geothermal plants, but the region is wiling to negotiate a higher price for projects located far from the power grid. However, some investors are concerned about whether debt-ridden PLN will ultimately be able to pay those prices as state coffers are already burdened with high subsidies for the energy sector, observers say.

Because building geothermal plants is expensive, with the ultimate capacity that can be extracted from them, uncertain, developers are looking for the highest possible tariffs and assurances that the projects will be profitable before jumping into the market. Brophy adds that the government is aware that tariffs must be more competitive and that it is likely to shift some traditional power subsidies into renewable energy to develop the geothermal space as well as other green technologies. 

The Indonesian tariff is lower than in the U.S. where developers are paid $0.10 to $0.12 per kWh. Development costs are much lower in Indonesia, however, Brophy says.

If all goes well — and barring a prolonged and deeper global recession — Brophy hopes Indonesia will be able to attract enough foreign money to meet its 2025 geothermal targets, which could ultimately make the country the world's biggest producer of geothermal power. But it will need to watch over rivals like the Philippines and Japan. The former is looking to install 3,000 MW by 2020, up from 1.95 MW now. And as it moves to diversify its energy matrix following its recent nuclear disaster, Japan could also draft ambitious plans to develop its "vast" geothermal resources, Derstine adds.

For now, eyes are on Indonesia as a potential leader in geothermal energy as long as it can get the funds it needs to meet its ambitious development targets.

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Two Japanese firms ready to relocate plants to Indonesia

Antara News, Tue, November 1 2011

Jakarta (ANTARA News) - Two Japanese companies are ready to relocate their plants from Thailand to Indonesia because of protracted flooding in the former, an official said.

"Because of the floods we have received a request from Japanese automotive and electronic manufacturers to relocate their plants from Thailand to Indonesia," the deputy for industry and trade to the coordinating minister for economic affairs, Edy Putra Irawady said here on Tuesday.

Edy said at least four companies, three of them from Japan and one from Europe, intended to relocate their plants to Indonesia.

The companies were automotive and electronic manufacturers which were currently operating in Thailand, he said.

"Two of the four companies are really new investors, while two others intend to relocate their plants and they are Japanese companies," he said.

But the companies had yet to file a formal request to the Indonesian government, he said.

"They phoned us to ask what incentives the Indonesian government can give to them if they relocate their plants here. For instance, will they receive tax holiday or not?," he said.

But Edy stopped short of revealing the names of the Japanese companies.

Asked whether they were large-scale automotive and electronic manufacturers such as Honda and Nissan, he said they were in the same class as the two Japanese companies.

He said two automotive companies which intended to expand their investment in Indonesia were Toyota and Mercedes Benz. Toyota planned to raise its investment by Rp7 trillion next year.

"They will make Indonesia their production base for their exports," he said.

Editor: Suryanto

No cuts in scholarship allocations for Indonesians: Netherlands

The Jakarta Post, Jakarta | Tue, 11/01/2011

The Netherlands has no plans to cut the portion of scholarships it has been allocating for Indonesians despite the debt crisis currently plaguing the Eurozone, a Dutch official said here on Tuesday.

“Don't worry about budgets. We're still offering wide opportunities for Indonesians who want to study in the Netherlands,” Nuffic NESO Indonesia director Mervin Bekker told a press gathering in Jakarta.

Nuffic Neso Indonesia is the official representative of Nuffic -the Netherlands Organisation for International Cooperation in Higher Education- in Indonesia; for all matters concerning Dutch higher education.

Bekker said the Dutch government was even planning to further expand its partnership with Indonesian education institutions.

He said the Netherlands considered Indonesia important in its international education cooperation policy, citing127 partnerships that had been established between Dutch and Indonesian higher education institutions, 22 percent of which covered student exchanges and 19 percent were in the form of research partnerships, Antara news agency reported.