Govt to build solar cell company in West Java

Antara News, Mon, March 19 2012 

Jakarta (ANTARA News) - The Ministry of State Owned Enterprises plans to build a solar cell company in Karawang, West Java, in response to the growing suggestions that Indonesia should use more renewable energy and reduce its dependency on fossil fuel, a minister said.

Dahlan Iskan. (ANTARA
/Rosa Panggabean) 

"The company will produce a capacity of 60 megawatts per year, and the government has planned to invest Rp500 billion. The company is expected to start operations by November 2013," Minister of State Owned Enterprises Dahlan Iskan said here on Monday.

Earlier, Minister of Research and Technology Gusti Muhammad Hatta had said his ministry was continuously studying the pattern of geothermal energy utilization in Indonesia as part of the efforts to ready existing renewable energy sources for tapping by 2025.

"My ministry is continuously studying the utilization patterns since it has been planned that in 2025 new renewable energy should be ready in large amounts," he said.

Gusti added that the National Energy Board (DEN) had predicted that the availability of petroleum would deplete by 2020 so the preparation of renewable energy on a large scale should be started early.

Oil may still be available off the coast but it is deep inside the ocean and will require the use of advance technology and high costs to obtain.

Therefore, the renewable energy derived from various sources such as ocean currents, wind and plants (bio-ethanol) must be reviewed for use, the minister explained.

"In fact, in the near future we will be working on geothermal energy because we (Indonesia, Red) has 44 percent of the world`s geothermal potential," he noted.

The DEN version guided by the blue print of National Energy Management 2004 mentions that Indonesia`s energy source of fossil fuel, which is oil, will be exhausted within 18 years, gas in 61 years, and coal in 147 years.

Currently Indonesia needs as much as 1.5 percent of the world`s oil to reach 10.5 billion tons.

Meanwhile, Indonesia exports as much as 1.5 percent, which means that Indonesia`s ability to produce oil takes care of 3 percent of the total oil consumption in the world.

Earlier, Minister of Energy and Mineral Resources Jero Wacik said that renewable energy in Indonesia has not been fully utilized, especially the abundant solar energy.

"Solar energy is currently used only for drying coffee and during the tourist season, even though it can be utilized optimally," he said.

Jero noted that energy sources of oil will be exhausted but according to the data from the National Energy Board, renewable energy is currently only 5 percent of the total energy used.

So the government is working towards making sure that renewable energy reaches a minimum of 25 percent of the total energy used in 2025.

According to the Ministry of Energy and Mineral Resources, there are currently around 28 sources of geothermal energy with a potential of about 7,000 megawatts that have been licensed for exploration by the Forestry Ministry.

Editor: Priyambodo RH

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INDONESIA: BMW starts assembling 5-series in Indonesia

Just-Auto, Tony Pugliese, 15 December 2011

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

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

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

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

Nigeria to invest Rp 24t in Indonesian refinery deal

The Jakarta Post, Wed, 10/12/2011

Nigeria plans to invest Rp 24 trillion (US$2.68 billion) in Indonesia to fund the construction of three oil refineries, an official says.

The Industry Ministry's director general for manufacturing-based industry, Panggah Susanto, was quoted by kompas.com as saying that both countries had agreed to build the refineries in Indonesia.

Nigeria, which produces 2.6 million barrels of oil per day (bpd), was looking for a partner to refine its crude oil, Panggah said.

"Previously they wanted the refineries to be built in Nigeria," he said Tuesday. "However, as Indonesia is currently improving its downstream industry, Indonesia wanted the refineries to be built here instead."

The refineries, which are projected to produce 300 bpd each, will be used to process crude oil from Nigeria.

"State firm PT Pertamina will buy the crude oil from Nigeria and process it here," he said.

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.

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.

RI, China ink US$6b deal for SE Sulawesi nickel smelter

Esther Samboh, The Jakarta Post, Jakarta, Mon, 09/19/2011

Chinese representatives on Monday signed an agreement with Indonesian officials to invest US$6 billion in a nickel smelter in Southeast Sulawesi.

Jilin provincial government’s Jilin Horoc Nonferrous Metal Group Co Ltd will develop the nickel smelting industry in Bombana and North Konawe regencies of Southeast Sulawesi and work with local firm Billy Indonesia with operations starting next year.

“First of all, mining materials should be processed domestically — no more raw material exports. Secondly, there will be job creation for thousands of people,” Coordinating Economic Minister Hatta Rajasa said after witnessing the agreement by representatives and officials of the related firms, regencies and provinces.

Hatta and Investment Coordinating Board (BKPM) chairman Gita Wirjawan said they expected the project to have a multiplier effect on the regencies’ economies and create jobs for local residents.

Toyota Toots Its Horn Over Massive New W. Java Plant

Jakarta Globe, Faisal Maliki Baskoro, September 13, 2011

Toyota chief executive Akio Toyoda arrived in style in Jakarta on Tuesday,
posing beside an orange 1977 Toyota Kijang, a popular model during the
company’s four decades in Indonesia. (AP Photo/Achmad Ibrahim)    

          

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Toyota’s supply chain may have been hit by the impact of the March tsunami in its home country of Japan, but the automotive maker is pushing ahead with expansion plans abroad, including in Indonesia.

Visiting the archipelago to mark 40 years of Toyota’s presence here, Akio Toyoda, the company’s chief executive, formally announced its plan to build a second plant in West Java.

Toyoda met Indonesia’s president and vice president on Tuesday, as well as an Industry Ministry official, to provide details of Toyota’s Indonesia plans.

“Our expansion plan shows our commitment to Indonesia,” Toyoda said, after briefly driving an orange 1977 Toyota Kijang, once the company’s most popular model.

Toyoda said Indonesia had become a focus of investor attention and a leader among developing nations as economies in Japan and Europe were clouded by economic crises.

Despite global production plans being disrupted by the March 11 earthquake and tsunami, Toyoda said that by June, Toyota had recovered “100 percent,” ahead of initial projections.

This was “thanks to the hard work and support of our people and thanks to the support from other countries like Indonesia,” he said.

Toyota announced it would build its second factory in a 76,000-square-meter facility next to its existing plant in Karawang, 60 kilometers east of Jakarta.

Toyota increased its investment to Rp 2.9 trillion ($336 million) from the Rp 1.7 trillion it committed in March in a sign of the growing automotive demand in Indonesia.

The factory is expected to be completed by 2013 and add 70,000 units of annual production capacity. Toyota is also keen to boost the local content of its cars and hopes the factory will generate 15,000 jobs.

Toyota expects to boost its exports from Indonesia, which last year represented 42 percent of its 107,000 unit output in the nation.

Toyota leads the market in Indonesia with a 37 percent share. Toyoda attributed that success to the Kijang, a family van.

“It’s the road that makes the car. Making cars that suit the characteristics of Indonesian roads is our way to catch our customer,’’ Toyoda said.

The Toyota Kijang has been sold in Indonesia for three decades. “Together with the Kijang Innova, these two models are our stars,” Toyoda said.

Johnny Darmawan, the president director of local distributor Toyota Astra Motor, said the trend in Indonesia was toward multipurpose vans to accommodate families, while there was also likely demand for a low-cost hatchback.

“We are also looking to export some of the cars produced in the new plant, but our priority is still satisfying the local demand,” he said.

Johnny said Toyota and the government were still in talks over tax incentives, but that infrastructure such as ports was more important.

Edwin Sebayang, the head of research at MNC Securities in Jakarta, said Indonesia’s growing economy and easy financing would drive car sales.

“It’s not surprising at all that automotive companies are posting high revenues with high margins,” he said.

Nestle Begins Construction of $200m Factory in Indonesia

Jakarta Globe, September 13, 2011

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Geneva. Swiss food giant Nestle said on Monday it began construction of a $200 million (146.7 million euros) factory in Indonesia which will produce infant cereals, chocolate malt drinks and milk powder.

“Our decision to invest USD 200 million in Karawang is consistent with the growth in demand and our confidence in the rapidly developing economy of Indonesia,” Arshad Chaudhry, President Director of Nestle Indonesia said in a statement.

The factory in the town of Karawang, West Java, will create over 600 jobs and is expected to open in early 2013, the company added.

Agence France-Presse

Toyota to build new factory in Indonesia-Nikkei

Reuters, Sept 9, 2011

(Reuters) - Toyota Motor Corp plans to spend nearly 30 billion yen($387.8 million) to build an assembly plant in Indonesia that it hopes to launch in the first half of 2013, the Nikkei business daily reported.

The plan calls for nearly doubling the firm's capacity in that country to about 200,000 vehicles a year, the paper said.

The decision comes after three years of holding off judgement on any plant construction in Japan and abroad, said the business daily.

Japan's leading carmaker seeks to maintain its lead in Indonesia, which is set to become Southeast Asia's largest auto market, the Nikkei said.

The new facility will be built adjacent to its existing factory in the Jakarta suburbs of Karawang and is expected to assemble three subcompact models, including a low-priced strategic vehicle under development for that country, the paper reported.

Last year, auto sales in Indonesia was around 750,000 units, approaching Thailand's roughly 800,000, with the number seen exceeding 1 million units in the coming years, the paper said.

Toyota controls about 60 percent of the Indonesian market when contributions by group firms such as Daihatsu Motor Co are included. But as competition grows with Nissan Motor and Suzuki Motor announcing plans to boost output, Toyota aims to improve cost competitiveness through increased local production, the Nikkei reported.           

(Reporting by Sumit Jha in Bangalore;Editing by Sriraj Kalluvila)

General Motors to Invest $150m in Indonesia Plant

Jakarta Globe, August 12, 2011

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Detroit. General Motors Co said on Friday it will invest $150 million to reactivate a plant in Indonesia to build a “people mover” van for Southeast Asia.

The No. 1 U.S. automaker said the Bekasi plant in West Java, Indonesia, will begin production of the vehicle in 2013 and build 40,000 of the vans a year, ultimately creating more than 800 jobs.

GM, which said it will add new manufacturing equipment at the plant, did not disclose further details about the vehicle, including its name, design specifications or pricing.

GM said the Indonesia plant will mean an expansion of GM’s dealer network in that country and it will join with its Rayong, Thailand, and Hanoi plants to support growth in the region.

Last year, GM’s sales in Indonesia rose 72 percent to 4,500 vehicles. They were up 18 percent in the first six months of 2011.

Reuters

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GM to Reopen Indonesia Plant, Create 800 Jobs

Procter & Gamble to build first plant in Indonesia

Antara News, Wed, August 10 2011

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Jakarta (ANTARA News) - Procter & Gamble will invest up to US$100 million to build its first plant in Indonesia in Karawang, West Java, P&G Home Product Indonesia External Relations Manager, Junita Kartikasari said.

The fast moving consumer goods producing plant (PMCG) will be completed with modern facilities to produce baby diapers Pampers, she said.

She said it would be the first plant in Indonesia that will recieve a "Leadership in Energy and Environmental Design (LEED)" certificate.

LEED is a system of international certification issued by the US Environment-Friendly Construction Council.

The certificate is given to buildings that meet environmental criteria. P&G has earlier announced that all of its new facilities would be LEED-certified.

PGHP president director Mohamed Ismail at the laying of a corner stone of the plant said Indonesia is an important market for baby treatment industry.

The ceremony was also attended by industry minister MS Hidayat who expressed hope on the occasion that the new plant would spur national FMCG industrial growth.

He said the government fully supported the construction of the plant which shows that business opportunity in Indonesia is wide open.

Mohamed said six of 11 countries with the biggest baby population are in Asia. Indonesia is one of them with 17 million babies aged under 48 months.

"A lot of babies I think would need correct treatment especially when their parents have to adapt to a modern life style. At the time practical, healthy and trusted will be badly needed," he said.

The plant will take around two years to construct before it could fully operate.

In the next five years P&G expects demand for baby diapers in the country would reach around eight millions. The plant is expected to create around 400 jobs.

P&G hopes its products would reach hospitals and midwives. Its products at present are consumed by around 4.4 billion people in the world such as Pampers, Tide, Ariel, Always, Whisper, Pantene, Mach3, Bounty, Dawn, Fairy, Gain, Pringels, Charmin, Downy, Iams, Crest, Oral-B, Duracell, Olay, Head&Shpulders, Wella, Gillette, Braun, Fusion, Ace, Febreze and Ambi Pur.

P&G is operating in 80 countries and its producs could be found in more than 180 countries.

Editor: Priyambodo RH

Nissan to invest $320 mn in Indonesia plant

Yahoo/AFP, 26 July 2011

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

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

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

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

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

Chinese state-owned company to build ferronickel industry in Kalimantan

Antara News, Sat, July 23 2011

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

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

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

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

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

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

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

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

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

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

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

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

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

Editor: Priyambodo RH

Red Cross to build blood bag factory

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

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

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

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

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

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

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

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

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

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

World’s Cheapest Car to Be Made in Indonesia: Report

Jakarta Globe, July 11, 2011

Netherlands Ambassador to India Bob Hiensch posing at the wheel of
a Tata Nano in New Delhi in 2010. The world’s cheapest car is likely to
 be manufactured in Indonesia, a report said on Monday. (AFP Photo)

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The world’s cheapest car, the Nano produced by Indian carmaker Tata Motors, is likely to be manufactured in Indonesia, a report said on Monday.

The Bangkok Post reported that Indonesia had appeared to win out over Thailand as the production base for the vehicle.

The newspaper, quoting an unnamed source, said that as Indonesia had “offered more attractive incentives, Tata decided to shelve the expansion plan in Thailand.”

Reasons included Thailand’s lack of political stability and automobile tax structures.

The Post reported that Tata was hoping to produce 50,000 Nanos a year at a plant in Jakarta from 2013.

“It plans to export the cars to Thailand, Malaysia and the Philippines as it is banking on their large populations and big demand for low-cost cars.”

China to build four cement factories in Indonesia

Antara News, Thu, June 30 2011

Jakarta (ANTARA News) - China is planning to construct four cement factories in Kalimantan and Papua with a total investment of 2.35 billion US dollars.

A memorandum of understanding (MoU) on the cement factories development plan was signed by the industry ministry`s Director General for Manufacturing Industry Base Panggah Susanto and a Chinese consortium here Thursday.

The Chinese consortium consists of Anhui Province`s State Enterprise Administration and Supervision Commission Director General Xu Chong Xin, Chairman of Prosperity Group Huang Bing Jun, and Guo Wen San of Anhui Conch Cement Company LTd.

The MoU signing was witnessed by among others Industry Minister Hidayat, Chairman of the Investment Coordinating Board (BKPM) Gita Wirjawan, and East Kalimantan Governor Awang Farouk.

Several projects included in the MoU are among other things a cement factory to be built at Tanjung, South Kalimantan, Toeti Rahajoe, the industry ministry`s downstream chemical industry director, said.

The planned total investment would reach 400 million US dollars, with an initial investment amounting to 250 million US dollar, she added.

The second factory will be constructed at Tanah Grogot (Paser), Sepinang, East Kalimantan, with a total production capacity of 10,000 klinker tons per day. Its investment will reach around 600 million US dollars.

Two other cement factories will respectively be built in Pontianak, West Kalimantan Province, and Papua Proivnce, with investments amounting 600 million US dollars and 750 million US dollars.

Industry Minister MS Hidayat welcomed China`s plan to build the four cement factories in Indonesia as the domestic demand for cement is expected to increase 7-10 percent.

He estimated the cement demand in Indonesia in 2015 will reach 55 million ton, while the total cement productions from the existing nine cement producers are recorded at 53 million tons. The factories are located at Java, Sumatra, Kalimantan, Sulawesi and Nusa Tenggara islands.

"The cement demand in 2010 in Indonesia was 40.7 million tons while production totaled 37.8 million tons. Demand for cement in the future is expected to increase 7-10 percent," he said.

Editor: Priyambodo RH

INCO to build nickel factory in Bahodopi, C Sulawesi

Antara News, Fri, June 17 2011 

Palu, C.Sulawesi (ANTARA News) - PT Inco (Tbk) will realize its commitment to build a nickel processing plant in Bahodopi, Morowali district, Central Sulawesi province, before the end of June 2011, according to a clause in the work contract signed by the Indonesian government and PT Inco Canada in 1968.

"God willing, the groundbreaking ceremony to build the nickel refinery in Bahodopi will be held on June 22, 2011," a PT Inco official, Iskandar Siregar, said here Friday.

He refused to elaborate about the project but the Head of Bahodopi and Pomala`a Project, PT Inco, Kuyung Andrawina said the project`s cost was estimated at US$500 million.

According to Iskandar, the groundbreaking ceremony will be conducted by the Governor of Central Sulawesi Longki Djanggola, Morowali District Chief Anwar Hafid and the President Commissioner of Valeinco, the Brazilian company that controls the shares of PT. Inco, Peter Poppinga, as well as the CEO of PT Inco Tony Wenas.

On the occasion, PT Inco will also sign a memorandum of understanding with Bao Steel and PCI - two companies from China that will become partners to Inco in building the nickel factory.

The construction of the nickel plant in Bahodopi is also an investment strategy of the company to achieve an annual production of 90,000 metric tons compared with an average of 73,000 metric tons achieved in the last five years from the refinery in Sorowako, South Sulawesi province.

In connection with the visit of the Chairman of Valeinco Peter Poppinga to Morowali, Inco will also symbolically hand over the products development and the social activities which were funded with Inco`s social responsibility program that most of them are already enjoyed by the people of Central Sulawesi.

Those products include diesel engine power plant with a capacity of 1 mega watt, a unit of mini-hydro power plat, a health center building and its equipment, ten motorcycles for the health center as well as food packages to the local people living in the vicinity of the project site.

Editor: Jafar M Sidik

S Korean tire maker to invest Us$353 mln in RI

Antara News, Thu, June 9 2011

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Jakarta (ANTARA News) - South Korean tire maker Hankook Tire will invest 353 million US dollars in Indonesia to build factories that are to employ a total of about 2,800 people by 2018.

"Building a factory in Indonesia which is in the middle of the global market is a decision that will be beneficial for the economy of Indonesia and also Hankook Tire," said CEO of Hankook Tire, Seung Hwa Suh, at the inauguration of a tire plant in Bekasi, West Java, on Thursday.

In the initial phase, he said, Hankook Tore will invest 353 million US dollars with an initial production capacity of about 6 million tires per year.

Hankook Tire also plans to have hired about 1,400 workers by 2014 and 2,800 by 2018.

"Hankook Tire is to make a strategic investment in Indonesia to meet the high demand for high-quality tires for its globally expanding business," he said.

Indonesia is considered a promising country because it is one of the world`s largest rubber producers with a total production of 2.92 million tons in 2010.

In addition, tire sales in Indonesia in 2010 increased by 23 percent from 2009, or approximately 49.5 million tires.

The factory which is worth a total of 1.1 billion U.S. dollars is planned to have four major production facilities covering an area of ​​60 hectares and will become an export base for the North American market and the Middle East as well as a regional hub for developing countries in Asia.

In addition to the factory in Bekasi, Hankook Tire also has two factories in South Korea, three factories in China, and one factory in Indonesia.

"The new plant will open an important opportunity for us to improve our global status into the top five," said Seung Hwa Suh.

Meanwhile, Minister of Industry, MS Hidayat expressed happiness for the fact that Hankook Tire has choosen Indonesia as a location to develop a global business strategy.

Head of Investment Coordinating Board (BKPM) Gita Wirjawan believe the investment will improve bilateral relations between Indonesia and South Korea.

Editor: Jafar M Sidik

Chandra Asri to build first butadiene factory in Indonesia

Antara News, Fri, June 3 2011

Jakarta (ANTARA News) - PT Chandra Asri Petrochemical Tbk (CAP) through its sister company, PT Petrokimia Butadiene Indonesia, will build the first butadiene factory in Indonesia.

For this purpose, the company appointed Toyo Engineering Korea Ltd as a contractor which had passed successfully the process of tender on May 27, 2011, the director of PT. Petrokimia Butadiene Indonesia, Suhat Miyarso said here on Thursday.

Butadiene is a combined raw material to produce synthetic rubber for tire and plastic-related automative components.

The appointment of Toyo Engeering Korea Ltd as the contractor practically marks an immediate construction of butadiene factory in Indonesia.

According to him, the Toyo Engineering Korea Ltd company submitted the best bidding prices among other three bidders from Korea and Italy.

The bidders which participated in the tender of butadiene factory construction were those who ever built such similar factories in other countries and had been granted with licenses from BASF. Of the whole criteria, Toyo Engineering Korea Ltd was named the winner, Suhat said.

Marked with the laying of ground breaking stone, the construction will be started in July this year on a 40,000 meters squire land still within the complex of the PT. Chandra Astri Petrochemical in Cilegon, Banten province.

Furthermore, Suhat said the construction work could be expectedly completed in 23 months under EPC contract (Engineering, Procurement and Construction). Hopefully, this first butadiene factory in Indonesia will come into commercial operation in May, 2013.

The total value of investment for the factory construction may reach USD110 million with a planned production capacity of about 100,000 tons per years.

He further stressed that most of the factory?s products would be used to meet domestic and export demands by applying such a license from BASF. The raw material for the production of butadiene like cruder C4 would be mostly supplied by PT. Chandra Asri Petrochemical and small portion of raw materials was to be imported.

According to Suhat, butadiene could be further processed into SBR (styrene butadiene rubber), ABS (Acrylonitrile butadiene styrene), SBL (styrene butadiene latex) and others.

SBR can be further used as raw materials to produce synthetic rubber, constituting components for tire and plastic related automative components industries.

So far the need for butadiene in Indonesia is still imported from foreign countries such as Korea and Japan.

With the operation of PT. Petrochemical Butadiene Indonesia later, the tire producers and national automative components will be able to trim the import cost, thus increasing the scale of production in addition to strengthening domestic petrochemical and automotive industries capable of recording a significant progress.

With domestic production of butadiene, all kind of tire production costs could be reduced, thus paving the way for national tire industries to make a speedy progress in the years to come, Suhat said

Editor: Suryanto