We Are Waiting for You to Invest in Indonesia, Jokowi Tells APEC in Speech

Jakarta Globe, Nov 11, 2014

President Joko Widodo delivers a speech at the APEC CEO Summit as part of the
 Asia-Pacific Economic Cooperation Summit at the China National Convention
Center in Beijing on Nov. 10, 2014. (AFP Photo/Pool/Andy Wong)

Jakarta. Indonesian President Joko Widodo addressed business leaders at the Asia-Pacific Economic Cooperation CEO summit in Beijing on Monday, where he put out a call for greater investment in the archipelago and promised a friendlier climate for doing business in the country.

The following is his speech:

Excellencies, distinguished guests, ladies and gentlemen and CEOs.

First, on behalf of Indonesian government and the people of Indonesia I would like to thank you for coming to my presentation. Today I am very happy to be among with you because you know I was a businessman years ago. So this morning I am very happy because we can talk about business, about investment with all of you.

This picture shows you our map of Indonesia. We have a population of 240 million and the distance is like from London in the UK to Istanbul in Turkey. And imagine, we have 17,000 islands.

Our national budget in 2015 is $167 billion and the fuel subsidy [allocation] is $27 billion. It’s huge. So we want to channel our fuel subsidy from consumption to productive activities. We want to channel [the money] to farmers for seed, for fertilizers, and also for irrigation. And we want to build dams — 25 dams in five years from our fuel subsidy to maintain the water supply to farming areas.

Some subsidy [funds] we want to channel to fishermen, to give them boat engines [and] refrigerators. We want to increase the income of the fishermen. Some fuel subsidy [funds] we want to [give to] micro and small enterprises in the villages. We want to help them raise working capital. And some subsidy [funds] we want to channel to the health program [and] the education program. And the subsidy [funds] we [also] want to channel to infrastructure.

In five years we want to build 24 seaports and deep seaports. We have 17,000 islands, so we need seaports and deep seaports. And this is your opportunity: 24 seaports and deep seaports.

This picture shows our Jakarta port, Tanjung Priok Port. In 2009, the capacity was 3.6 million TEUs a year. And our plan in 2017 is around 15 million TEUs a year. This is the potential [for] ports in Indonesia. This is your opportunity. We want to build in Sumatra, Kalimantan, Java, Sulawesi, Maluku, also in Papua. And we plan to build our [railway network]. We already [have railway lines] in Java and we want to build in Sumatra, Kalimantan, Sulawesi and Papua. This is your opportunity.

Now we talk about mass transportation. We want to build mass transportation in six big cities in Indonesia. We started in Jakarta last year, and we want to build in Medan, Makassar, Semarang, Bandung [and] Surabaya. So, this is also your opportunity. Because you know our national budget is limited.

Now we [will] talk [about] our maritime agenda. We want to build [a] sea toll. What is [a] sea toll? [A] Sea toll is [a] maritime transportation system to make our transportation costs lower [and] more efficient. We want to build from the west to the east. We hope not only the vessels can enter our sea toll but also mother vessels can enter the sea toll. So the price, the cost of the transportation, [becomes] more efficient.

For example, the price of [...] one sack [of] cement in Java is $6 [...] But in Papua the price is $150 [...] Imagine, 25 times [as much]. So we hope with our sea toll the price in our islands [will be] the same.

Electricity. We need power plants. We need around 35,000 [megawatts] to build our industries, projects, industrial zones, [manufacturing] zones. So we need power plants. This is also your opportunity to invest in this project. Because we need our power plants for manufacturing, for industrial zones.

Many investors, a lot of investors, when they come to me most of them [...] always complain about land acquisition. I will push my ministers, my governors, my mayors to help clear this problem. I have experience with land acquisition when I was a governor. We [had the] Jakarta Outer Ring Road [project that] started 15 years ago but stopped eight years ago, because we had a problem. One point five kilometers [was] unfinished because there [were] 143 families [who did] not accept [...] the compensation price. So last year I invited them [...] to lunch and dinner. Four times. Ah, this is me. I invited them and then we talked about the problem. Four times. And the problem [was] cleared.

And now the toll road has been [in use since] seven months ago.

Now [let’s] talk business permits. We have a national one-stop service office that can help you, that will serve you, that will facilitate you, that will give you your business permit. For example, [a] principle business permit [will take] three days to process.

Finally, again on behalf of the Indonesian government and the people of Indonesia I would like to thank you for your listening my presentation. We are waiting for you to come to Indonesia. We are waiting for you to invest in Indonesia. Thank you.

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NZ interested in geothermal and animal husbandry projects

Antara News, Mon, April 16 2012

 "For investments there are two sectors that New Zealand is interested in, animal husbandry and geothermal plants."

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Gita Wirjawan. (ANTARA)

Jakarta (ANTARA News) - New Zealand is interested in investing in geothermal and animal husbandry projects in Indonesia, trade minister Gita Wirjawan said.

"For investments there are two sectors that New Zealand is interested in, animal husbandry and geothermal plants," he said during a seminar on business and investments held by the Indonesian Chamber of Commerce and Industry (Kadin) and the New Zealand government here on Monday.

The event was also attended by visiting New Zealand prime minister John Key, flanked by trade minister Tim Groser and a 40-member business delegation.

"With regard to animal husbandry, New Zealand has 30 million head of cattle and 40 million sheep, while its population is only 4.5 millions. So there is a lot of added value that they could give us," he said.

Gita who is also head of the Capital Investment Board, said New Zealand`s businessmen have been positive about the investment potential in the animal husbandry sector, not only in cattle breeding but also processed cattle products.

"New Zealand is also interested in geothermal development projects because that country is, like Indonesia, located in the ring of fire and so they are interested in Indonesia, which has 40 percent of the world`s geothermal total reserves," he said.

Gita added that New Zealand also has skills in processing geothermal energy, as some experts in the field also joined the prime minister`s delegation.

He said, however, he could not as yet tell about the value of their investment. "But I think it will be quite big. For cattle development the investment is expected to be realized this year, while for geothermal projects, further study is needed.

With regard to trade between the two countries, the minister admitted it was still very small, only US$1.1 billion.

"The government is making efforts to see trade between the two countries reach minimally one percent of the two countries` total gross domestic product. The two countries` GDPs total US$1.2 trillion and so one percent of that is US$12 billion. As it is now still recorded at US$1.1 billion, it means a lot of work still has to be done," he said.

Indonesia export products to New Zealand include textile, garments, agricultural and animal husbandry materials.

"Indonesia, meanwhile, imports a lot of processed milk, which is their main export. We now still suffer a deficit of between US$100 million and US$200 million in our trade with New Zealand, but hope with the ratification of the ASEAN-New Zealand Free Trade Agreement early this year that conditions would become more equal," he said.

The FTA has been considered mutually beneficial because, the minister said, under it Indonesia could export more goods and services to New Zealand.

According to data from the New Zealand government, Indonesia is the world`s tenth largest export market for that country and the largest market in Southeast Asia.

New Zealand`s exports to Indonesia reach 870 million New Zealand dollars, and imports from Indonesia total 704 million dollars.

Total bilateral trade between the two countries has reached 1.5 billion New Zealand dollars.

New Zealand`s main exports to Indonesia in 2011 were food and drink, including milk, cream milk, cheese and butter, amounting to 60.9 percent of its total exports worth 521.3 million New Zealand dollars.

Cooperation between the two countries in geothermal projects began in 1982 when New Zealand`s then prime minister, Robert Muldoon, and president Soeharto opened the first geothermal project in the country in Kamojang.

Editor: Priyambodo RH

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Russian Railways to Build $2.4b Coal Line in Indonesia

Jakarta Globe, February 07, 2012

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State firm Russian Railways plans a $2.4 billion train line on Indonesia’s Borneo island that will initially be used to transport coal, an Indonesian government official said on Tuesday.

The line in East Kalimantan province is expected to start operating by the first quarter of 2017, and will help improve the decrepit infrastructure on the island that has hampered exports of key commodities and put a strain on economic growth.

“The first stage of the railway will be meant for coal, but hopefully we can also use it for crude palm oil, plantation harvests, rubber and people,” Awang Faroek, the governor of East Kalimantan, told a news conference in Jakarta.

The first phase of development, which will cost $1.7 billion, will be for 185 kilometers of railway, with another 60 kilometers added during a second phase.

The railway’s capacity is expected to be 20 million metric tons of coal per year for the first phase, added Andrey Shigaev, a director at the project, which will be funded by both private investors and Russia’s state development bank Vnesheconombank.

Southeast Asia’s largest economy is the world’s top producer of palm oil, the biggest exporter of refined tin and thermal coal, a major nickel miner and home to the world’s second-largest copper mine and largest gold mine. The country’s coal and palm oil assets are mostly located in Kalimantan.

The railway will connect an area close to the Balikpapan port through the Kutai Barat regency to the border to Central Kalimantan province, where the railway is expected to be expanded in the second phase of the project.

“The Russians have expertise in heavy haul rail lines,” said an Australia-based analyst. “Russian Railways are a pretty big operator of rail infrastructure, so I would guess it’s the rail company looking to expand.

“Russia itself doesn’t need to buy coal from anyone, they have a lot of coal of their own so from a strategic point of view, they don’t need to do it.”

Indonesia’s thermal coal output is seen at 350 million metric tons this year, according to industry estimates, fueled in large part by power demand in China and India.

The UAE’s MEC Holdings is currently building a railway to export coal from its Kalimantan mine project, and leading Indian conglomerate Reliance ADA Group is set to invest between $5 billion and $10 billion in mining infrastructure.

“Traditionally, coal in Indonesia has been transported by pretty fragmented means — trucks, small private short railways, barges,” the analyst added.

“It does signal that the producers there and the government is getting a bit more serious in terms of their commitment to scale infrastructure.”

Infrastructure development in Indonesia has been slowed in the last decade because of uncertainties in acquiring land.

However, in December the parliament passed a land bill designed to speed up land acquisition for state projects deemed in the public interest as a way to address the problem.

Economic growth in Indonesia was 6.5 percent last year — it’s highest level since 1996 — while the country attracted record foreign direct investment of close to $20 billion.

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

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

Slovakia to invest $1 bn in Indonesia

The JakartaPost, Mon, 10/10/2011

Slovakia was planning to invest US$ 1 billion in Indonesia, visiting Slovakia President Ivan Gasparovic told reporters on Monday in Jakarta.

He said the investment plan would be included in seven agreements due to be signed on Tuesday.

Gasparovic delivered the plan after meeting with President Susilo Bambang Yudhoyono in Merdeka Palace Jakarta on Monday.

“There are fields to be explored in the areas of trade, agriculture, electricity, power plant generators and heavy machinery,” President Gasparovic said.

President Yudhoyono said Slovakia planned to construct a cement factory in Central Java and West Papua, a tire factory in Banten and electrical power plants in Lombok (West Nusa Tenggara) and Batam (Riau islands.

“Indonesia has sent nine proposals to Slovakia. The proposals are in food and agriculture, renewable energy, trade and investment, banking, education, mass media, infrastructure and manufacturing, tourism and culture,” he said.

US, Indonesia announce $28.5 million debt swap for forests

Antara News, Mon, October 3 2011

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Jakarta ( ANTARA News) - The United States and Indonesia on signed a $28.5 million debt-for-nature swap agreement on Monday, the US Embassy here said in its official website on Monday.

The agreement was signed under the U.S. Tropical Forest Conservation Act (TFCA) of 1998 that will reduce Indonesia`s debt payments to the U.S. Government over the next eight years by nearly $28.5 million.

In return, the Government of Indonesia will commit these funds to support grants to protect and restore the country`s tropical forests in Kalimantan. This agreement, in partnership with World Wide Fund for Nature-Indonesia (WWF) and The Nature Conservancy (TNC), will be the second TFCA debt-for-nature swap in Indonesia.

The first agreement was signed in 2009 and supports forest conservation activities on the island of Sumatra.

Both of these agreements contribute to the climate change and environment objectives of the US-Indonesia Comprehensive Partnership.

Kalimantan - Indonesian Borneo - historically has contained some of the world`s most remote and biologically-rich forests. There are presently up to 15,000 different flowering plants on Borneo and the island is home to a large number of treasured animal species such as orangutans, clouded leopards, and "pygmy" elephants.

The second Indonesia TFCA marks the 18th TFCA deal, following agreements with Bangladesh, Belize, Botswana, Brazil, Colombia, Costa Rica (two agreements), El Salvador, Guatemala, Indonesia (now two agreements), Jamaica, Panama (two agreements), Paraguay, Peru (two agreements), and the Philippines.

Editor: Heru

Unilever invests Rp 1.1t in N. Sumatra

The Jakarta Post, Jakarta, Thu, 09/29/2011

Multinational company, Unilever, is planning to open a palm-processing plant in Semangke, North Sumatra with a total investment of Rp. 1.1 trillion (US$122 million).

“Unilever is developing a new facility in Semangke, North Sumatra. It is a Fatty Acid Oil Chemical plant,” Investment Coordinating Board Chief Gita Wirjawan said on Thursday as quoted by Antara news wire.

Gita was among ministers who accompanied President Susilo Bambang Yudhoyono in welcoming Unilever top officials at the State Palace on Thursday.

Visiting Unilever top officials included Chairman Michael Treschow; CEO Paul Polman; Chief Supply Chain Officer Pier Luigi Sigismondi; President Director of PT Unilever Indonesia Tbk Maurits Lalisang, and Corporate Secretary Sancoyo Antarikso.

Gita said it would take two years to finish the new facility.

Gita said the company was also committed to investing US$600 million for its expansion in Indonesia.

“It has a number of plants in Java. It accepted our suggestion to build plants outside Java,” he said.

The company will cooperate with 10 firms to invest 50 million euro in Nusa Tenggara.

Ministry vows to speed up issuance of geothermal project permits

The Jakarta Post, Jakarta, Mon, 09/05/2011

The Forestry Ministry promised that they would comply with instructions from President Susilo Bambang Yudhoyono to speed up the issuance of permits for geothermal projects based in forest areas.

“When the [permit] requirements are completed, we guarantee that it will take no longer than three months for the geothermal permit to be issued,” Forestry Minister Zulkifi Hasan said on Monday, as reported by kompas.com.

He added that he had ordered his ministry officials to speed up the process in issuing permits.

According to Zulkifli, several companies have already proposed investments in geothermal projects.

“Many have proposed [projects],” he said, adding that he has signed several project permits already.

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.

Indonesia to Import 180,000 Australian Cattle

Jakarta Globe, July 08, 2011

From left to right: Indonesian Agriculture Minister Siswono, Trade and
 Industry Minister Mari E. Pangestu and Finance Minister Hatta Rajasa greet
 Australian Foreign Minister Kevin Rudd before their meeting in Jakarta on Friday.
 Indonesia will import 180,000 live cattle from Australia for the third quarter, marking
 the restart of imports after a ban on the Aus$320 million trade was lifted this week,
Hatta said on Friday. (AFP Photo)  

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Indonesia will import 180,000 live cattle from Australia for the third quarter, marking the restart of imports after a ban on the Aus$320 million trade was lifted this week, chief economics minister Hatta Rajasa said on Friday.

Australia’s government removed the month-long ban on live cattle exports to neighboring Indonesia on Wednesday, saying it was satisfied the trade could resume after a scandal over mistreatment of livestock.

Rajasa met with Australia’s foreign minister Kevin Rudd in Jakarta on Friday to agree the details of resumption of trade, which comes just as Indonesia’s demand is expected to pick up during the fasting month of Ramadan in August.

Rudd said both sides had agreed on cattle welfare, but he did not specify what improvements to standards Indonesia had made or had promised to make, after a joint team of experts toured abattoirs in the archipelago last month.

“Australia and Indonesia welcome any arrangements that industry reaches to give the sector higher standards, including the use of appropriate technical devices to meet halal standards,” Rudd said at a joint news conference in Jakarta.

Australia’s agriculture minister said this week it had revised export control orders to require ranchers to apply for permits to meet welfare requirements, and to trace cattle from farms through shipping to abattoirs with agreed standards.

The minority government had been under pressure from ranchers to overturn the ban.

Cattle producers had warned the decision was costing jobs and that domestic beef prices would fall, while some had also threatened to slaughter stock. 

Elders Ltd, one of Australia’s largest shippers of live cattle to Indonesia with up to 200,000 head annually, said it had booked a ship on Aug. 1 to take 3,200 cattle to its Indonesian abattoir.

“We expect to be up and running by Aug. 1 ... that’s the game plan at the moment,” said Malcolm Jackman, chief executive of Elders.

Elders owns a fully accredited abattoir in Indonesia and on Thursday said it was willing to provide the needed third-party certification that would be transparent and provide full traceability.

The abattoir stuns the cattle before slaughtering them, a practice that is seen as causing less distress to cattle. The ban came after television footage showed cattle being beaten, whipped and maimed prior to slaughter in some abattoirs.

Jackman said it would still take at least two months for shipments to pick up.

“It depends how quickly it can be done before the wet season starts,” he said. “Everyone is a lot happier than they were a week ago -- that’s for sure.”

Reuters

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Netherlands to assist RI in boosting food security

Antara News, Mon, July 4 2011

Jakarta, July 4 (ANTARA) - The Dutch government will help Indonesia step up its food security in the framework of the two countries cooperation.

Armida S. Alisjahbana. (ANTARA)

"Food security is important issue especially with the prices which tend to rise," Dutch Minister for International Cooperation and European Affairs Ben Knapen said in a press conference at the national development planning board (Bappenas) building here on Monday.

Knapen said if the food prices were not controlled, it would have a negative impact on the poor people.

According to him, food security was one of several cooperation between Indonesia and the Netherlands, which would help Indonesia among others in food research and development.

He said the focus of cooperation this time was not as wide as that in the past, because it would be aimed at improving institutional capacity for development, climate change, and forest damage management.

The Dutch government has a commitment to supporting development cooperation in the form of grants amounting 53 millions of euro.

Meanwhile, State Minister for National Development Planning Board/National Development Planning Board chairman Armida S Alisjahbana said the cooperation between Indonesia and the Netherlands was focused on a number of important sectors.

She said the important sectors were about water related climate issues, food security, governance which was focused on law, and higher education.

Armida pointed out that the Netherlands was known to have a lot of experts in water management, and therefore the country would help Indonesia develop water management system in Jakarta.

Editor: Priyambodo RH

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Garuda cares about forest reservation

Antara News, by Otniel Tamindael, Tue, June 7 2011

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akarta (ANTARA News) - To make a valuable contribution to the fight against global climate change, state-owned airline company PT Garuda Indonesia cares deeply about forest preservation.

The company has carried out tree planting activities to help sustain forests in in a number of areas across the country to provide wider environmental and socio-economic benefits.

In the Gunung Padang forest area in West Sumatra, national flag carrier Garuda Indonesia Airlines planted thousands of trees recently.

"Thousands of the trees Garuda has planted at Gunung Padang forest area are made up of various kinds including Mahogany and Meranti," Garuda Padang branch general manager Dedi Irawan said in Padang on Sunday.

In the natural rain forest, Mahogany is a very large canopy tree, sometimes reaching over 150 feet in height with trunks sometimes more than 6 feet in diameter above a large basal buttress.

Mahogany is a generally open-crowned tree with gray to brownish-red fissured bark, and is regarded by many as the world`s premier wood for fine cabinetry, high-class furniture, pianos and other musical instruments, figured and decorative veneer, interior trim, and carving.

Besides Mahogany, Meranti is also an important emergent tree of the tropical forests in Asia. Its wood is light to medium weight and widely used for light construction and more importantly for veneers.

Many other forest products are derived from Meranti, which is classified in the division Magnoliophyta, class Magnoliopsida, order Theales, family Dipterocarpaceae.

Dedi Irawan said the Mahogany and Meranti tree planting activity by Garuda Indonesia was conducted at Gunung Padang in West Sumara because he area has been deforested.

"If reforestation is not done immediately at Gunung Padang forest area, it will would have a bad impact on the people living nearby," Dedi Irawan said.

According to him, sustainable reforestation at critical land through the government projects and public participation was one way to prevent any future natural disasters such as floods.

"The tree planting activity to help prevent erosion and restore critical land because of illegal logging is part of Garuda Indonesia`s concern for environmental damage," Dedi Irawan said.

"Forest is a buffer for the life of surrounding communities, and therefore Garuda Indonesia is very concerned about the destruction of forests due to illegal logging," he added.

Dedi said the tree planting activity at Gunung Padang forest area by Garuda was in cooperation with Padang city administration

to restore forest sustainability.

He added that Garuda started environmental care program of "One Passenger One Tree in 2007 as part of its Corporate Social Responsibility (CSR Garuda Indonesia).

Garuda Indonesia also carried out tree planting activity in Aceh province in January last year in cooperation with the International Leuser Foundation (YLI) and the provincial government of Aceh to help sustain the forests in the province.

At the time Garuda President Director Emirsyah Satar said the planting of 24,000 trees in Aceh reflected the state-owned airline company`s care about forest preservation and community economic improvement.

According to garudamagazine.com, Garuda Indonesia has realized an environmental protection program to help mitigate global climate change by rehabilitating the forest through tree replanting at Sebangau National Park in Central Kalimantan following the signing of memorandum of understanding (MoU) in November 2007.

The reforestation in the Sebangau National Park covers an area of 250 hectares and involves 100,000 trees, which were planted by setting aside part of the proceeds from ticket sales to passengers flying on Garuda Indonesia routes from Australia and Japan.

In his remarks, Emirsyah Satar said at the time that the tree planting activity was in line with Garuda Indonesia`s program of concern for natural conservation and also with the efforts of the global aviation industry to achieve "clear sky" operation by 2050.

Emirsyah Satar also noted that the activity was expected to create opportunities for economic improvement for the local community through development of ecotourism in Sebangau National park, much as Garuda Indonesia has already done in Yogyakarta through the "One Passenger One Tree" program.

An agro-ecotourism zone has been developed in Karang Tengah, Yogyakarta, through planting of 50,000 Mahogany and Cashew trees, from which golden silk would be produced that is unique in the world.

Garuda Indonesia has done this for several interrelated reasons: to spur more tourists to visit Yogyakarta, especially those who are interested in agro-ecotourism; to empower and foster local silkworm farmers; and to conserve the environment by planting trees with productive economic value.

Carbon Positive believes that tree planting can and will make a valuable contribution to the fight against global climate change.

It believes that carbon markets in their various forms are key to providing an effective means of financing tree-planting activities on the scale needed to make a difference globally.

Planting trees is hugely beneficial to the world in the face of accelerating climate change for there is a strong international scientific consensus that human activity is causing global warming.

At a local level, tree planting on deforested lands will create further environmental benefits because forests play a vital role in regulating water supplies, helping to reduce both water shortages in times drought and damaging floods in heavy rains.

Forests also provide habitats for a wide array of plants and animal species, a number of which are threatened with extinction by deforestation.

Therefore Garuda Indonesia`s care about forest preservation is expected to help support the local community`s livelihood, and through its tree planting activity, Garuda is a pioneer in conservation among state-owned enterprises.

Editor: Priyambodo RH

E Kalimantan builds three industrial estates

Antara News, Mon, May 30 2011

Samarinda, East Kalimantan (ANTARA News)- To build a highly competitive regional economy to raise the welfare of the local population, the East Kalimantan provincial administration is developing three industrial groups prioritizing agricultural and industrial development, and exports.

"The sectors are oleo chemical agricultural based industries in East Kutai, oil, gas and condensate based industries in Bontang, and industrial areas in Kiangau, Balikpapan," East Kalimantan Governor Awang Faroek Ishak said here Monday.

He added that the development of oleo chemical agricultural industries in East Kutai regency was already in line with Presidential Instruction No 1 of 2010 on National Development Priorities, in other words it has the support of the President.

Under Presidential Instruction, East Kalimantan is preparing 5,035 hectares, for the building of an industrial estate and international port (KIPI) Maloy.

The area will be divided into two locations, the first 1,000 hectares in Teluk Golok for a CPO plant, and the second 4,035 hectares in Maloy for an industrial estate and container port.

The project in Bontang was aimed at supporting the development of petrochemicals like urea, ammonia, soda and methanol, while an ammonium nitrate plant is under construction, and the area has raised its urea production capacity by building urea plants.

The industrial estate in Karingau in Balikpapan, will have CPO receiving facilities on 426.9 hectares called PT Mekar Bumi Andalas, a wood pulp plant PT Kutai Chip Mill also already operating in 15 hectares, and a coal handling area PT Gunung Bayan Grup on 400 hectares.

The other projects include an area for a shipbuilding yard and rubber industry PT Dermaga Perkasa Pratama already operating, a Pertamina supply base for offshore drilling on 8.9 hectares.

"The three estates are expected to be developed into a Special Economic Zone, for which the industrial groups need to be fully supported by effective and reliable infrastructural means and facilities," the governor said.

Editor: Aditia Maruli

Germany assists RI in forest, climate change program

Antara News, Thu, May 26 2011

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Jakarta (ANTARA News) - Germany has committed to assisting the Indonesian government in the Forest and Climate Change program (ForClime).

The ForClime program will be carried through two cooperation moduls, namely Technical Cooperation (TC) via GIZ with funds worth 6.75 million Euro and Financial Cooperation (FC) through KfW worth 20 million Euro, the forestry ministry said here Thursday in a press statement.

The program has a target to decrease the CO2 emission rate from deforestation and forest degradation by 300 to 400 thousand tons during a seven-year period.

The assistance was provided as the result of the bilateral negotiation held in October 2007.

The ForClime program launching was marked by "ForClime FC-Module National Kick-off Workshop".

The program`s demonstration activities on REDD+ (Reducing Emission from Deforestation and Forest Degradation) is implemented in three districts on Kalimantan Island, namely Kapuas Hulu, Malinau and Berau.

The objective of the program is to cut the greenhouse gas emission from the forestry sector and to improve the living condition of the rural people.

The gas emission rate will be reduced by addressing the main drivers of deforestation and forest degradation occurring the conserved forests, protected forests and production forests.

President Susilo Bambang Yudhoyono recently signed a Presidential Instruction on deforestation moratorium to help curb the climate change impacts and preserve the remaining tropical forests and biodiversity in it.

The presidential decree on a moratorium on logging concessions for two years was only applicable to primary forests and peat lands in conserved forests, protected forests, production forests and the Other Use Land (APL).

Indonesia hosts the world`s third largest forest area after Brazil and Congo (formerly Zaire). Based on forestry ministry 2010 data, Indonesia has around 130 million hectares of forests, including 64.2 million hectares of primary forests, and 24.5 million hectares of peat lands.

Editor: Heru