RI, EU ink agreement on 'open skies' aviation market

The Jakarta Post, Jakarta | Thu, 06/30/2011

Indonesia and the European Union (EU) signed a “horizontal agreement” on Wednesday on the aviation industry, aiming for a more liberalized or “open skies” aviation market  between the two parties.

“The Agreement between The Government of the Republic of Indonesia and The European Union on Certain Aspects of Air Services” was signed in Brussels on Wednesday evening by Indonesian Transportation Minister Freddy Numberi, Hungarian Ambassador to the EU Agnes Vargha and European Commission Vice President and commissioner responsible for transport Siim Kallas.

“The transportation minister said during the signing of the agreement that it was an important step to strengthen the relationship between Indonesia and the EU in the future, through the implementation of high standards of air transportation security and safety,” Indonesian Transportation Ministry spokesperson J. A. Barata said in a Thursday press release.

“The horizontal agreement between Indonesia and the EU will serve as a legal ground for bilateral agreements on certain aspects [of air services], such as aviation safety, taxation requirements and compliance with regulations on competitions,” he said.

Barata said the new agreement would complement existing bilateral agreements on aviation Indonesia had earlier signed with 18 member states of the EU: Austria, Belgium, Britain, Bulgaria, Czech, Denmark, Finland, France, Germany, Hungary, Italy, Luxembourg, the Netherlands, Poland, Romania, Spain, Sweden and Greece.

“The agreement is expected to encourage more intensified flows of goods and humans, increases in investments and the growth of tourism between the two parties, which in turn is expected to boost our national welfare and economic growth,” Barata said.

Garuda Orders 25 Airbus A320 Planes to Replace Boeing 737 Fleet

Jakarta Globe, Femi Adi | June 22, 2011

PT Garuda Indonesia ordered 25 Airbus SAS A320s, including 10 A320neos, as it replaces a fleet of Boeing Co. single-aisle aircraft at its low-cost unit.

The contract, worth about $2.2 billion at list prices, also includes options for another 25 A320neo planes, Garuda Chief Financial Officer Elisa Lumbantoruan said by e-mail today.

The Citilink unit, which operates five 737s, will receive the new Airbus aircraft from early 2014, he said.

The deal builds momentum for the A320neo after Toulouse- based Airbus yesterday won 90 orders for the plane on the first day of the Paris Air Show.

Boeing is deciding between joining Airbus in offering a revamped single-aisle aircraft with new engines and developing an all-new model.

Garuda, Indonesia's biggest carrier, picked the Airbus planes because of lower operating costs and because they were more quickly available than Boeing models, Lumbantoruan said.

Slots for the 737 are sold out until 2016, Jim Albaugh, the head of Boeing's commercial-plane unit, said in an interview yesterday.

Airbus markets the A320neo as 15 percent more fuel efficient than current planes. Deliveries of the new aircraft are due to begin in 2015.

Citilink also plans to add four leased Airbus A320s this year to support traffic growth that's three times as fast as last year, Garuda said earlier this month. The unit flies to domestic cities including Jakarta, Surabaya and Denpasar.

Bloomberg

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EU will inject €30m to boost RI trade, investment climate

Esther Samboh, The Jakarta Post, Jakarta | Wed, 05/04/2011

The European Union’s (EU) 27 member states will inject €30 million (US$44.66 million) into Indonesia to strengthen the trade and investment climate, according to the countries’ joint press statement.

“[The €30 million support] includes a program to support Indonesian business organizations (ACTIVE), the Trade Support Program (TSP) II to support the Indonesian government in the field of export quality infrastructure and the Trade Cooperation Facility (TCF), a flexible mechanism to support attracting investments to Indonesia,” said an official statement issued following EU Trade Commissioner Karel de Gucht’s visit to Indonesia.

The EU member states provided over €66 million in 2009.

Negotiations between Indonesia and the EU would facilitate the export of wood and paper products from Indonesia to European companies, De Gucht said at a news conference at the Kempinski Hotel in Jakarta.

Indonesia is Europe’s largest investment destination and second largest market. The EU invested a total $2.78 billion in Indonesia -- excluding the oil and gas, banking and financial sectors – for a total of 521 projects, Investment Coordinating Board (BKPM) data shows.

In his first visit to Indonesia, De Gucht met with Trade Minister Mari Elka Pangestu to discuss bilateral trade and investment issues, including and several issues of market access

The high-level gathering assessed the EU-Indonesia Vision Group’s recommendations to boost commercial relations between the countries. Established in 2009, the vision group was formed to invigorate the relationship between Indonesia and the EU by strengthening economic growth and the alleviation of unemployment and poverty through investment and trade in key sectors.

“One important step recommended by the Vision Group after the completion of its report is to have early consultation with stakeholders to generate widely shared interests and support from businesspeople, government officials and civil society in both countries on the idea of Indonesia-EU comprehensive economic partnership agreement,” the joint statement said.

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EU and Indonesia sign deal on illegal timber

EU and Indonesia sign deal on illegal timber

BBC News, By Richard Black, Environment correspondent, 4 May 2011

Orangutans are among the animals threatened by illegal
logging in Indonesia

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Indonesia and the European Union have finalised an agreement aimed at ending the trade in illegally-sourced wood.

The agreement will mean that EU companies will only be able to import timber that is certified as complying with Indonesian environmental laws.

The East Asian nation possesses some of the world's most lavish forests, which in turn support spectacular wildlife.

The EU has concluded similar deals with four African countries, and Liberia is expected to follow suit next week.

The deal - being signed in Jakarta - is known as a Voluntary Partnership Agreement (VPA).

"Not only is Indonesia the first Asian country to conclude VPA negotiations with the EU, it is also by far the largest timber exporter to enter into such an agreement," said EU trade commissioner Karel de Gucht.

Currently, European countries import about $1.2bn (£720m) worth of timber and paper from Indonesia each year.

This accounts for about one-sixth of the nation's exports.

Importing problems

Last year, a major assessment concluded that the rate of illegal logging in Indonesia had declined by about 75% over the preceding decade.

Even so, it said, 40% of the timber harvested was illegal.

This was despite an initiative dating back to 2003 in which the government, alongside environmental groups and some companies, attempted to rein in illegal loggers, processors and exporters.

Wood products as well as raw timber will be
included in the measures

Meanwhile, the US and EU have recently stepped up measures designed to block wood and wood products of illegal origin.

The US amended the Lacey Act so that companies are responsible for making sure their imports are legal, and the totemic Gibson guitar company is among those investigated as a result.

Last year, the European Parliament passed legislation with similar components, which comes into effect in March 2013.

Mardi Minangsari of Indonesian environment group Telapak said she was hopeful that tackling both ends of the chain would bring results.

"We have worked hard with other stakeholders to design a system that will involve independent auditing and independent monitoring by civil society," she said.

"Also, we know that the new legislation in the US and EU preventing the entry of illegal timber has played a big role in convincing industry of the need to transform the way timber is harvested in Indonesia."

Companies wanting to export to the EU will have to be able to track their products from forest to exporting port.

Independent auditors - yet to be appointed - will be charged with verifying that companies' tracking is up to standard.

These auditors will report back to a joint Indonesian-EU committee.

Although only exports to Europe are covered by the agreement, the EU hopes that setting up the system will help Indonesia curb illegal logging and illegal exports across the board.

"By engaging with Indonesia, by having a good process to look at the legislative framework and identify the gaps, we hope to help them improve the whole situation," a European Commission official told BBC News.

Responsible sources

Generally, restrictions on the timber trade have had a mixed reception in the industry.

Some companies see it as a threat to their business - others, as an opportunity, ensuring that responsible practices are not penalised and that the supply of raw materials will be safeguarded.

Commenting on the latest agreement, Andre de Boer, secretary-general of the European Timber Trade Federation, congratulated the Indonesian and EU decision-makers.

"This regulation will support our quest for a level playing field in the market, encouraging buyers to purchase legal and sustainable timber, and therefore supporting producers who act responsibly," he said.

The EU is expected to conclude a similar agreement next week with Liberia.

A decade ago, the West African republic saw exceptionally rapacious logging, with armed factions trading timber concessions for weapons, prolonging the years of bloody civil conflict.

News Focus: Japan trying to keep RI out of China`s growing influence

Antara News, by Vicki Febrianto, Thu, February 17 2011

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Jakarta (ANTARA News) - Japan is trying to keep its long-time friend Indonesia free of China`s growing economic influence as Tokyo is convinced that Jakarta is a strategic economic co-player.

"The visit by a Keidanren delegation to Indonesia earlier this week is an alternative step taken by Japan to face China`s growing influence here," said Sofyan Wanandi, chair of the Indonesian Businessmen`s Association (Apindo), on Wednesday.

Wanandi said Keidanren is very influential in the Japanese economic system due to the fact that it is a solid grouping of the country`s industries. Thus, whenever Keidanren sends a big delegation to any country personally led by its chairman, those in the know would understand the significance of the visit.

Accompanying Keidanren chairman Yonekura Hiromasha during the visit were Keidanren board of councillors chairman Watari Fumiaki, Mitsubishi Corp.Vice Chairman Sasaki Mikio, Dai-ichi Life Insurance Vice Chairman Morita Tomijiro, Toray Industry Vice Chairman Sakakibara Sadayuki, Mizuho Financial Group Vice Chairman Maeda Terunobu and Mitsubishi Heavy Industries Vice Chairman Tsukuda Kazuo.

Wanandi said that Tokyo had been quite aware of the fast growing economic ties between Indonesia and China which has grown at the rate of 25 percent annually since 2001. Jakarta-Beijing bilateral trade has been projected at 50 billion US dollars by 2014 with the 2010 trade figure already reaching 35 billion dollars.

According to Wanandi, Jakarta however would not that easily leave Japan to become close to China considering the fact that Japan had strongly supported Indonesia in its various stages of economic development since the 1960s.

"I think Indonesia can take advantage of this recent approach by Japan. Indonesia can try to attract more investment from Japan," said Wanandi who nevertheless reminded the Indonesian government to shape up and improve the infrastructures so that investments would flow in more smoothly.

In a similar vein, the Indonesian Institute of Sciences (LIPI`s) economic observer Latif Adam noted that the visit by Keidanren was a form of recognition from Japan that Indonesia really is of strategic importance to Tokyo economically. Japan viewed Indonesia this way as it has been facing acute economic woes.

Adam said that Keidanren was an association of at least 100 major corporations and what was more important, Keindanren was always included in decision-making for investment, export and import policies taken by the Japanese government. Taking the fact into consideration, Indonesia could therefore take advantage by getting into Japan`s global production networking.

China`s Advances

Keidanren had agreed to focus on five main economic fields in its cooperation with Indonesia. "They are committed to development while focusing on five main fields," Economic Coordinating Minister Hatta Rajasa said after a meeting with the Keidanren delegation at his office on Monday.

The five main fields were transportation infrastructure such as railroads, marine ports, airports, roads and economic corridors in Java. In addition, the Japanese side was interested in energy supplies from renewable sources such as geothermal and low carbon emissions coal.

"They will also cooperate in any necessary fields that are related to industrial expansion, especially outside Java Island which are to be connected with ports," said Minister Rajasa, who welcomed the delegation. The Japanese delegation had earlier made courtesy calls on President Susilo Bambang Yudhoyono and Vice President Boediono.

In a more general perspective, according to available data, Japanese firms still have more investment in Indonesia than in any other Southeast Asian country and presently there are around 1,000 Japanese companies operating in Indonesia employing some 300,000 local staff.

The Indonesian Investment Coordinating Board (BKPM) calculates Japanese firms have invested more than 40 billion dollars in Indonesia in the last 30 years but inflows have steadily fallen dramatically since 1997.

This reflects a relocation of existing Japanese investment from Indonesia to neighboring countries due to a diminishing comparative advantage in labor costs and concerns over the country`s institutional and physical infrastructure, according to observers.

The total trade volume between China and Indonesia were projected to have reached 40 billion dollars in 2010. Bilateral trade from January to October 2010 has reached 33.75 billion dollars, a 53.6 percent increase compared to same period in 2009.

China and Indonesia is increasing 25 percent per year, because China saw Indonesia as a strategic partner, according to Zhang Qiyue, Chinese ambassador to Indonesia, in a seminar late in 2010.

To date, China`s investment in Indonesia has reached the level of 35 billion US dollars since diplomatic relations between the two countries resumed in 1990. Trade and investment have kept increasing steadily in terms of volume and value, observed Makmur Kellat, a China watcher.

Both countries also signed a strategic partnership in 2005 in which cooperation (not only in the economic but also the culture and defense sectors) was included in the agenda to strengthen existing relations.

Other efforts are also underway to sustain the impressive achievements in trade, investment and energy cooperation, for example, through trade fairs and regular meetings between the business community and policy makers.

Almost no one doubts that Japan, the United States and Europe`s role in investment in Indonesia can be overtaken by China, Kellat said.

With the view to building roads, bridges, ports and the energy sector, it is no wonder government institutions in Jakarta dealing with foreign investment are very keen to tap into China`s massive foreign reserves.

Editor: B Kunto Wibisono

RI, Malaysia launch joint CPO campaign in EU

Antara News, Friday, December 17, 2010

Brussels (ANTARA News) - Indonesia and Malaysia reached agreement to cooperate in the development of oil palm as a renewable source of energy.

The agreement was disclosed by Malaysian Plantation and Commodity Industries Tan Sri Bernard Dompok and Indonesian Deputy Agricultural Minister DR Bayu Krisnamurthi after a meeting with the European Commission in Brussels Tuesday afternoon.

The Joint Statement of the two countries of the same racial stock was made following discussions with Jane Potocnik of the European Union`s environmental commission, Connie Hedegaar of the Climate Action Commission, Guntter Oettinger of the Energy Commission and Development Committee Nirj Deva and chairman the Paolo de Castro plant development committee.

After holding the meetings, the two ministers held a dinner with members of the European Parliament and the host Martin Callanan also attended by Indonesian ambassador to Belgium, Lusemburg and the European Union Arif Havas Oegroseno.

DR Bayu Krisnamurthi said that the issues during the discussions included the directive decision of 2009/28/EC on the promotion of the use of renewable energy sources, and sustainable palm oil production.

In addition, the problem of indirect land use change (ILUC), biofuel certification, revision of renewable energy, and High Biodiversity Grassland.

For Indonesia and Malaysia the palm oil industry is very important in economic development absorbing more than eight million workers in the two countries.

Unfortunately, the palm oil industry is opposed by various public organizations engaged in the sector of environment, and many of them had no proper understanding on the benefits of oil palm for the people.

DR Bayu Krisnamurthi said the benefits of palm oil is ten times as big as the oil produced by other legumes.

The two countries agreed to develop renewable energy from palm oil with its many benefits, both for Indonesia and Malaysia, oil palm is a very important commodity.

Indonesia and Malaysia are the world`s biggest oil palm suppliers including for Europe reaching 90 pct. While 42 pct of the production in Indonesia came from the small farmers, and in Malaysia 40 pct.

The palm oil industry has managed to reduce poverty, create employment and raise the income of the people.

The Indonesian government has a great interest in the sustainable production of palm oil which in 2010 reached 21 million tons of CPO from 7.5 million hectares of oil palm estates.

In the meantime, total world CPO production reached 44.3 million tons in 2010.

There are 1.5 million small farmers engaged in the CPO industry, and many of them succeeded in raising themselves from poverty by way of oil palm.

Prior to 2000 the average income of oil palm farmers reached 1000 to 1100 euro per year, and only 37 pct produced only 600 to 700 euro per year.

In 2009 the income of the farmers doubled to 2000 euro per year, while farmers who previously have an inccome of less than 700 euro were reduced to 16 pct.

The energy produced in one hectare of oil palm land reached 3.74 tons per year with energy produced nine times as much, while soyabean only produced 0.38 tons and sun flower 0.48 tons.

The outcome of a study in Indonesia, according to chairman of the Indonesian Palm Oil Council DR Rosedana Suharto showed a default value of CPO reaching 60 pct. Therefore Indonesia felt it is necessary to hold a dialog between the European Union and Indonesia as the world`s biggest CPO producer.

The European Union set the the standard default value of CPO at 19 pct, while 35 pct is needed for biofuel. The European Union said Renewable Energy Directive of the European Union (EU-RED) is still open with inputs from various countries to enable them to produce the right policy beneficial for everyone.

Kadin hosts EU-Indonesia Business Dialogue

Nani Afrida, The Jakarta Post, Jakarta | Mon, 11/29/2010

The Indonesian Chamber of Commerce and Industry (KADIN) and five European business chambers launched the 2-day EU-Indonesia Business Dialogue in Jakarta on Monday to boost trade and investment.

Indonesia and the EU were strategic partners that shared complementary economic interests, Coordinating Minister for the Economy Hatta Rajasa said on Monday.

Senior EU trade relations official Rupert Schlegelmilch said that the EU was Indonesia’s second largest export partner.

“The EU is also a [foreign direct investment] source for Indonesia with around 50 billion euro ($US66.19 billion) and over 700 European companies in the country,” he said.

Leaders of Indonesia companies will meet high-level representatives from European companies to discuss strategic business during the conference.

European Commission provides €1.5 million for Indonesia twin disasters survivors

The Jakarta Post, Jakarta | Thu, 10/28/2010

The European Commission has allocated €1.5 million (US$2 million) in humanitarian assistance to survivors of the tsunami in Mentawai and the volcanic eruption of Mount Merapi in Java, EU Delegation to Indonesia, Julian Wilson said in a statement Thursday.

The funds will help around 65,000 people in Mentawai and at least 22,000 people in Yogyakarta or Central Java.

The funding will be channelled through the European Commission Humanitarian Aid and Civil Protection department (ECHO).

“We extend our condolences to those who have lost loved ones in these two natural disasters,” Wilson stated.

“The European Commission is providing this initial emergency assistance which will help alleviate the suffering of the survivors and the EU will continue to stand by its Indonesian partners in this time of need.”

A tsunami hit several islands of Mentawi in West Sumatra killing at least 343 people on Monday. The number is likely to climb higher because hundreds of missing people may have been swept away.

In Yogyakarta, the Mount Merapi volcanic eruption killed at least 33 people on Tuesday, forcing thousands to evacuate from the mountain slopes.

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Third Biggest European Investor in Indonesia

Kompas.com, Kamis, 5 Agustus 2010 | 17:42 WIB

LONDON, KOMPAS.com - Italy is the third biggest European investor country in Indonesia after Britain and the Netherlands with an investment value of US$4.05 million in the first quarter of this year, a diplomat said.

"Italy’s investment of US$4.05 million in the first quarter of 2010 increased 200 percent compared with that in the same period a year earlier which stood at US$1.4 million," Musurifun Lajawa, counselor for social and cultural affairs of the the Indonesian Embassy in Rome, said in a press statement received by ANTARA here on Thursday.

He said that Italy’s investment in the third quarter of 2010 was made in three projects while that in the first quarter of 2009 was for four projects.

According to the Investment Coordinating Board (BKPM), Italy’s investment in Indonesia in the first quarter of 2010 increased 192.9 percent.

Italy was in the fifth position on the list of European investors in Indonesia in the January - December 2009 period after the Netherlands, Britain, Switzerland and Germany. During the period, Italy’s investment reached US$41.02 million. In the last nine years (January 1990 - 2009), Italy’s investment ranked the sixth position after Britain, the Netherlands, Germany, France and Switzerland. Is investment in this period reached US$660.90 million.

Based on the data, Italy’s total investment in Indonesia in the January-February 2010 period amounted to US$501.59 million, which was a 4.8 percent increase compared with that in last year’s corresponding period of US478.51 million.

RI chosen for EU study on free trade and jobs

The Jakarta Post, Jakarta | Tue, 07/13/2010 9:24 AM | National 

The ongoing project to assess the effects of trade on employment in Indonesia is expected to support new national trade and labor market policies, a labor official said Monday.

The Assessing and Addressing the Effects of Trade on Employment (ETE) program — a US$4.5 million European Union-funded project —  aims to analyze the effects of free trade on employment.

Indonesia was chosen as a research case because of its huge potential in the economically-active Southeast Asian region, said Ralf Peters, the International Labour Organization’s (ILO) chief technical adviser on ETE. 

Bangladesh, Benin, and Guatemala were also chosen for the study The ILO hopes that ETE, which started in 2009 and will run until 2013, will help policy makers and researchers reduce the negative effects of free trade on employment, he said.

“We will start from a theoretical basis, and we will be very practical in implementation later,” Peters said.

The ASEAN-China Free Trade Area (ACFTA), which went into effect on Jan. 1, will be included in the project assessment, he added.

Peters said the ACFTA would “no doubt” destroy jobs in Indonesia. However, the agreement will also reduce the price of intermediate goods imported from China and give Indonesian companies opportunities to increase exports of other products produced with existing competitive advantages, he said.

The experience of East Java under the ACFTA is not yet clear,  Manpower and Transmigration Ministry analyst Indro Warsito said.

The province recorded an overall trade deficit between March and May and its trade balance with China showed deficits of $39.93 million, $49.31 million, and $102.67 million in the same period.

“It’s premature to say that the agreement negatively affects employment in the province,” he said, adding that the ministry was investigating how many workers had been laid off or furloughed due to the trade agreement.

Warsito said the ACFTA could have a positive impact on employment and that import substitutions could reverse the trend of unemployment and encourage more workers to enter the labor market.

Chris Manning of the Australian National University said people had to look at the effect of trade development at a national level instead of focusing on regional effects.

“Indonesia has great capacity, as it is selling many commodities to the Chinese market,” he said.

Shinta Wijaya of the Indonesian Employers Association (Apindo) said the government should amend labor law to create more business and employment opportunities. She said existing law did not accommodate the rights of workers and employers.

Indonesian laborers are not ready for free trade, as the government still ignores or overlooks fundamental labor problems such as basic workers rights, Indonesian Prosperous Labor Union chairman Rekson Silaban said. (tsy)

Transport Department: Europe Lifts Flight Ban on Two Carriers

Tempo Interactive, Thursday, 01 July, 2010 | 16:45 WIB

TEMPO Interactive, Jakarta: Transport Department claimed today that two indonesian carriers had been given permission to fly to Europe after Garuda Indonesia, the prime and state flagship carrier resumed its flight to Europe earlier this month.

More than a week after the latest meeting between the Transport Department and the European Commission to negotiate flight ban on the remaining Indonesia-based airlines, Director General of Air Transport Herry Bhakti Gumay said today (1/7) flight ban on Air Asia and Batavia Air has been lifted, while ban on Lion Air remains.

Herry said it was the result of the meeting though the European Aviation Safety Agency is yet to officially announce the revoke. He said announcement is expected in two weeks as the agency need to report first to the European Parliament.

European flight licenses of several Indonesian airlines were revoked in 2007 after a series of deadly crash, including one into the sea, which killed hundreds, left hundreds missing, and injured hundreds other on board and ground.

ADISTI DINI INDRESWARI

Indonesia to Get Rp4 Trillion in Education Grants from EU

Jakarta Globe, May 27, 2010

4 trillion rupiah has been allocated by the EU to develop Indonesia's education sector. (Photo Chris Ratcliffe/Bloomberg)

Yogyakarta. Indonesia will receive Rp 4 trillion in grants from the European Union (EU) and Australia to develop its education sector, a minister said.

“The grants will consist of 200 million euros from the European Union and Aus$200 million from Australia,” State Minister for National Development Planning Armida Salsiah Alisjahbana said following a bilateral meeting with the EU Commission for Development here on Wednesday.

The grants would be channeled for four years starting 2010, he said. Armida said the EU had agreed to channel the grants as budget support, “so the grants are not a project for the elementary education sector but will be taken to the state budget.”

In 2010 alone, EU will channel 45 million euros of the grants, he said.

“The rest will be channeled in stages,” he said. Director of Multilateral Overseas Funding at the National Development Planning Agency (Bappenas) Dewo BJ Putranto said it was entirely up to Indonesia to decide what activities are to be funded by the EU grants.

“In the first year the grants will be used to support the education sector to achieve the goals of the Ministry of National Education’s strategic plans,” he said.

Antara

EU to fund Indonesia's education program

English.news.cn, 2010-05-25 14:11:10

JAKARTA, May 25 (Xinhua) -- The European Union (EU) on Tuesday signed an agreement in which it provided grant worth 2.4 trillion rupiah (about 258.3 million U.S. dollars) to Indonesia for the new "Education Sector Support Program", to support the country's effort towards achieving the education-related Millennium Development Goals and providing nine years of quality basic education to all children by 2015.

Minister of National Education Muhammad Nuh in his remarks said that the government saw the provision of qualified education to all children as one of key priorities.

"Therefore, we welcome the new EU grant," said Nuh.

The Education Sector Support Program will be jointly supported by the EU and AusAID from Australia, whose contribution is expected to be announced later this year.

The EU grant contribution will be channeled as sector budget support and as such will directly support key policies and strategies in the new education of 2010-2014 to improve nation- wide access, quality and governance in basic education services.

As part of the EU-funded 258.3 million dollars contribution to the Education Sector Support Program, the EU will provide 240 million rupiah (about 25,931 dollars) over five years to support the government with technical expertise and access to international knowledge and best practices, in order to implement necessary reforms to achieve its education objectives.

The technical cooperation component will be managed by the Asian development Bank (ADB).

The signing ceremony took place in the two-day "Indonesia Education Partnership Forum" organized jointly by the Ministry of Education and the EU.

The forum gathered ten development partners of the EU to share and discuss with Indonesian government representatives and education stakeholders the lessons learned from their support to basic education.

Second ASEM Conference to be held in Yogyakarta

Antara News, Friday, May 21, 2010 17:10 WIB

Jakarta (ANTARA News) - Indonesia is to host the 2nd ASEM (Asia Europe Meeting) Development Conference co-sponsored by the European Commission, in Yogyakarta on May 26-27, 2010, an official said here, Friday.

The dialogue will focus on social cohesion and the future of international cooperation for development in a forum consisting of 43 member countries Asia and Europe, the the EU (Europe Union) and the ASEAN Secretariat.

Foreign Affairs Ministry`s Director of inter America-Europe cooperation, Dian Wirenjurit said that the meeting will be discussing several topics such as the future of Asia-Europe cooperation in sustainable development.

Besides it will also discuss climate change and low carbon development, social cohesion and its role in sustainable development and the role of policy coherence in sustainable development.

Australia and Russia will be attending the conference which will be two member countries in ASEM, besides the EU also invited several countries as observers namely Tajikistan, Srilanka, Hong Kong and Bangladesh.

The second ASEM conference is planned to be opened by the State Minister for National Development Planning, Prof. Dr. Armida S. Alisjahbana and the EU Commissioner for Development Mr Andris Pielbags.

In the meeting, Indonesia would also emphasize the Jakarta Commitment: Aid for Development Effectiveness in Indonesia, Indonesia`s Road Map to 2014 in bilateral aid management cooperation and also to make an explanation on climate change and low carbon development.

The Conference will aim to produce a statement with recommendations. On the basis of this work, it would become possible to design a political document which could be submitted for consideration of the ASEM members and through them, for approval of the ASEM.

EU gets 'Euro-leaf' logo for organic food

BBC News

The logo will soon appear on food packages across the EU

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

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

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

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

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

Garuda plans to develop secondary hubs, adds more routes

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Paper giant to withdraw from Indonesia rainforest destruction

www.chinaview.cn 2009-11-13 20:33:28

JAKARTA, Nov. 13 (Xinhua) -- Finnish global paper giant UPM-Kymmene planned to stop purchasing pulp from Asia Pacific Resources International Holding Limited (APRIL), which has involved in rainforest destruction in Riau province of Indonesia, Green peace said here Friday.

The decision comes following a move by dozens of Green peace activists from around the world who chained themselves to escavators in a logged peat land forest the province, demanding the United States to take more actions to end deforestation. The activists are now being detained by the police.

Greenpeace campaigner for Southeast Asia Bustar Maitar said that UPM, which supplies products like photocopy paper to global markets including the United States, China, Europe and Australia, admitted that APRIL's pulp "comes from a very delicate environment."

"It is reported that the firm would begin to cancel its contract with APRIL," Maitar told Xinhua over phone.

"The plan indicated a very positive move by UPM to help protect Indonesia's rainforests and carbon rich peatlands, the destruction of which leads to climate change, mass species extinction and causing poverty in forest dependent communities," he added.

"If international companies start distancing themselves from this environmental disaster, the call to end global deforestation here and around the globe will only get louder and louder."

Greenpeace estimates the contract to be equal to over 4 percent of APRIL's total pulp production, worth over 55 million U.S. dollars annually.

The campaigner said that APRIL had involved in forest destruction as the firm still had not licencing completely and operating at the peatland area in which its depth was more than 3 meters.

Besides, the firm had started operation before completing assessment of the location of the highly conservative forest.

"This is illegal under Indonesian law," said Maitar.

Editor: Lin Zhi

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Indonesian forest on frontline of climate debate

Indonesia Pumps More Money into Tourism

The Jakarta Globe, Nurfika Osman, October 23, 2009

A jet skier plies the waters under a setting sun in the Bunaken area of North Sulawesi, one of the destinations that could benefit from a boost in tourism marketing.

The Ministry of Culture and Tourism has been given a significant financial boost to attract more tourists, the minister said on Thursday.

Tourism Minister Jero Wacik said the ministry’s budget for this year has been increased by 36 percent from its 2009 level to Rp 1.366 trillion, plus Rp 426.3 billion for marketing.

In a press conference short on details, Jero, who often evaded direct questions, said the ministry now answered to the Coordinating Ministry for the Economy, not the Coordinating Ministry for People’s Welfare.

He said the increased budget was the reason for the shift.

Jero said the budget was still insufficient but added that he was optimistic that the tourism sector would continue to grow.

“The next five years will be harder because we have a working [performance] contract with the president, but I am sure we will continue to be as successful as we have been over the past five years,” he said.

“Visit Indonesia Year” in 2008 saw a record number of tourists arriving in the country: 6.4 million compared to 5.5 million visitors in 2007.

Tourism generated $7.3 billion in 2008, according to the ministry, up from $5.75 billion the previous year.

Tourist arrivals are expected to suffer in 2009 due to the global financial crisis, but in March the ministry was still forecasting a slight increase.

Jero said challenges still facing the tourism industry included immigration issues and the number of flights into the country.

But he said he was optimistic that flagship carrier Garuda would be able to increase the number of direct flights it operated, including to European countries after its ban was revoked.

Its ban on flying to the EU was lifted in August.

Jero said he would collaborate directly with the Ministry of Justice and Human Rights on immigration issues, specifically visas for tourist arrivals.

“We cannot let the bureaucratic system in immigration offices create difficulties for foreign tourists,” he said.

Asked about his strategy to boost tourism, including during the first 100 days of his new term, Jero said it was too early to comment.

“We are still thinking about the best strategy to boost this sector. I will collaborate with my staff and announce it soon,” he said.