German Metro Chain to Enter Indonesian Market

Jakarta Globe, June 12, 2011           

Berlin. Germany's giant Metro distribution chain Friday announced it is extending its international business empire to Indonesia where it wants to open some 20 supermarkets.

(Photo courtesy of Metro AG's Web site)

Its Cash-and-Carry division will soon be opening a wholesale distribution superstore in Jakarta, the firm said in a statement.

Metro has set up a joint venture with Indonesia's Sintesa holding, but its shops will not be able to bear its international trade logo as others already operate under that name in Indonesia.

The firm said it was looking for a new name to go by in Indonesia.

Metro is already active in 34 countries and its Cash-and-Carry division operates some 700 stores in 30 of them.

Agence France-Presse

Indonesia reopens to Dutch onions

Fruitnet.com, Tom Bicknell, 27 April 2011

A new treatment programme has reopened the Indonesian market to Dutch onions after a two-year hiatus

Indonesia has reopened to Dutch onions after two years, following work by Dutch exporters on treatment for stem nematode.

After closing in 2009 as part of an Indonesian zero tolerance policy, the market was reopened as of 18 April, according to Dutch group the Foundation for Promotion of Onions (SAU).

The organisation coordinated with the Netherlands Ministry of Economic Affairs, Agriculture and Innovation to develop a treatment programme for the Ditylenchus dipsaci stem nematode that fit Indonesian requirements.

The programme involves treatment with maleic hydrazide (MH).

Indonesia demands high-quality onions and is willing to pay corresponding prices, the SAU said in a statement, and the market’s peak demand reportedly runs over the first few months of the Dutch season.

OZ investor wants to develop dairy cow farm in E. Java town

The Jakarta Post, Jakarta | Wed, 03/16/2011

An Australian investor has expressed interest in developing a dairy cow business in the East Java town of Lumajang in partnership with a local firm.

Lumajang administration economic division head Nurul Huda stopped short of naming the Australian investor, but added he and the local investor, PT Mahesa Agri Pratama, considered Lumajang a good place to develop such a business.

“It's good in terms of climate. Besides, we have abundant potential cow food here,” Nurul said in Lumajang on Wednesday, as quoted by tempointeraktif.com.

She said Pronojiwo, Pasrujambe and Candipuro districts in the East Java town were now being eyed as the center for the dairy cow business.

Nurul added that the two investors had sent their envoys to discuss their interest with the local administration, and had calculated the potential profits.

They are also planning to build a milk factory for export purposes, she said.

Lumajang Farming Agency head Gatot Subiyantoro said there were currently 5,000 cows in Lumajang, 4,500 of which produced milk. The number of cow farmers in the area is 1,100 people, who comprise 100 farmer groups, he added.

Related Article:

Yogyakarta cattle prices drop drastically; farmers protest

Lotte Group to open 10 fast food restaurants in Jakarta

The Jakarta Post, Jakarta | Wed, 03/16/2011

South Korean firm Lotte Group said on Wednesday it will open 10 fast food restaurants in Greater Jakarta this year.

The restaurant, to be named Lotteria, will be established jointly with AJBS Group, which will owns 49 percent of its shares.

“In the next five years, we expect to open 100 Lotteria in Greater Jakarta,” Lotteria director Yi Su Il said.

The company said it planned to open 100 new branches across Greater Jakarta over the next five years.

Coca-Cola to Double Spending in Indonesia

Jakarta Globe, Camelia Pasandaran & Bloomberg | November 24, 2010     

Jakarta. Coca-Cola Amatil, Australia’s biggest soft-drink maker, announced on Wednesday that it planned to double annual spending in Indonesia to 100 million Australian dollars ($97 million) through 2013 to tap rising incomes with new products.

In this file photo, models put on clothing made from  recycled
Coca-Cola cans. Coca-Cola Amatil, Australia’s biggest soft-drink
 maker, announced on Wednesday that it planned to double annual
 spending in Indonesia. (Antara Photo/Fanny Octavianus)  

“Tomorrow we’ll be announcing that we’ll be increasing our investment in Indonesia by $100 million per year for at least the next three years,” chief executive Terry Davis said after a meeting with President Susilo Bambang Yudhoyono.

He said that political and economic reform in Indonesia had sent a positive signal to Australian investors.

“It [reform] is very important for a company like Coca-Cola Amatil. Obviously we need good access to power and we need good infrastructure — that was one of the reasons for the meeting.”

The company’s investment will cover all area of the business, Davis said, including extra bottling lines and expanded warehouse facilities and distribution.

“We have nearly 10,000 Indonesian employees so we’re hoping that we can continue to provide strong employment,” he said.

The bottler also confirmed its forecast for pre-tax earnings to rise by 7 percent to 8 percent in the six months ending on Dec. 31.

Davis said that rising per-capita consumption and a growing middle class will drive growth in a market that is the company’s biggest by population, yet its smallest by contribution to profit.

While Indonesia accounts for a quarter of the company’s sales volume, it represents just 15 percent of revenue and 10 percent of earnings, Ian Abbott, an analyst at Goldman Sachs & Partners Australia, said in a Nov. 18 report.

Atlanta-based Coca-Cola Co., the world’s largest soft-drink maker, owns 30 percent of the Australian company.

Seven foreign investors to build cocoa plants in RI

Antara News, Monday, October 18, 2010 22:30 WIB

Jakarta (ANTARA News) - Seven foreign investors have expressed keen interest in building cocoa processing plants in Indonesia following the imposition of duties on cocoa exports as of April 1, 2010.

The seven investors are ADM Cocoa and Olam International of Singapore, Guanchong Cocoa of Malaysia, Cargill and Mars of the United States, Armajaro of Britan, and Ferrero of Italy, Director General of Agribusiness at the Industry Ministry Benny Wachjudi said on Monday.

"I don`t know when the investors will start investing. But they have asked for clarification on the possibility of the government reviewing the imposition of duties on cocoa exports," he said.

Benny said Guanchong Cocoa was likely to build a cocoa processing plant with an annual capacity of 50 thousand tons early next year.

In addition, he said local cocoa producer PT Bumitangerang Mesindotama would also double the production capacity of its plant in Tangerang, Banten province, to 80 thousand tons per year.

The expansion project which would cost an estimated US$40 million would be completed in eight months` time, he said.

Benny said a number of downstream cocoa processing plants had begun to revive their activities after they ceased operation.

Chairman of the Indonesian Cocoa Producers Association (AIKI) Piter Jasman said the imposition of duties on cocoa exports had a positive impact on the growth of downstream industries.

"Fifteen AIKI members have raised their production capacity. The national cocoa powder and butter production is projected to reach 300 thousand tons in 2011," he said.

Papua village places food hopes in sago

Markus Makur, The Jakarta Post, Timika | Thu, 09/16/2010 10:04 AM

A sago planting program will ensure that the Kamaro people of Nayaro village, Mimika, Papua, can eat for the next ten years, a local leader says.

PT Freeport Indonesia, the Catholic Diocese of Timika and Manokwari’s Papua State University (Unipa) launched the program in 1998 to guarantee the community’s food security.

The program involved the cultivation of 8,520 prime sago tree seedlings between 2008 and 2009.

“Thanks to the program, we are confident that the people of Nayaro will not suffer from food shortages in the future,” Timika diocese chief Monsignor John Philip Saklil Pr. said recently.

Saklil said superior sago seedlings had been imported from Sentani, Jayapura, and planted on a 85 hectares of a 124-hectare farm that was collectively owned by 141 Nayaro village families. Each family received a plot of 60 sago trees.

Planting was completed in May 2009 and residents have since tended to the trees, which could be harvested after eight to 10 years.

“I hope PT Freeport’s Social and Local Outreach Development department will help the people in Nayaro to care for the sago trees so they can be harvested,” Saklil said.

Some of the trees now top 4 meters. Mature sago trees can yield up to 1.5 tons of flour.

“If a single tree could yield up to 1.5 tons of flour, then it could provide food to many people,” Saklil said.

“The food crisis could be overcome in the future,” he added.

Nayaro village’s sago trees are a pilot project for other villages along the southern coast of Mimika, he said, adding that residents were taught how to make sago flour into cakes, noodles and meatballs.

Unipa rector Yan Pieter Karafir said the province has 1.2 million hectares of sago plantations, 90 percent of the national total.

Fast-Food Giant Cuts Ties With Sinar Mas

Jakarta Globe, September 02, 2010

In this file photo Greenpeace activists display a large banner with a message "APP stop destroying tiger forest" at the PT. Tebo Multi Agro concession. APP, Indonesia's largest pulp and paper producer is a division of Sinar Mas. Burger King, the international fast food company, has cut ties with Sinar Mas after Greenpeace’s successful campaign against the Indonesian group’s land-clearing practices. (AFP Photo/Romeo Gacad)

US fast food giant Burger King said on Thursday that it would no longer buy palm oil from Sinar Mas or its subsidiaries, after Greenpeace’s successful campaign against the Indonesian group’s land-clearing practices.

Burger King joins the likes of Unilever, Nestle and Kraft in shunning Sinar Mas in a move that will increase pressure on other corporate buyers of its palm oil products, such as Pizza Hut, KFC and Dunkin’ Donuts.

The news comes on the same day that Burger King, the second-largest US fast-food chain, announced that it had agreed to be bought by investment firm 3G Capital for $24 per share, or about $3.26 billion.

Indonesia is the biggest producer of palm oil, which is used in everything from biscuits to cosmetics, but environmentalists say plantations are behind deforestation blamed for habitat loss and greenhouse gas emissions.

Burger King said a recent independent audit of Sinar Mas palm oil unit Smart’s land-clearing practices — commissioned by Sinar Mas in response to the Greenpeace allegations — revealed activities “inconsistent with our corporate responsibility commitments.

“We believe the report has raised valid concerns about the sustainability practices of Sinar Mas’s palm oil production and its impact on the rainforest,” Burger King said on its Facebook page.

“As part of our … corporate responsibility program, Burger King Corp. is committed to sourcing our products from sustainable suppliers.”

It said it was looking for a new palm oil supplier for its 176 restaurants supplied by Sinar Mas.

“In addition, we are notifying our suppliers of our intent to discontinue the use of palm oil supplied by Sinar Mas in the manufacturing of our products.”

Sinar Mas Agro Resources and Technology has been struggling to repair its image after a Greenpeace campaign led several foreign buyers to cancel major contracts.

Greenpeace says the company is clearing high-value peat forest against Indonesian law and failing to wait for environmental studies before starting operations in sensitive areas of Borneo.

The company has acknowledged mistakes have been made in small areas, but denies it is a “forest destroyer.”

Rampant deforestation, much of it illegal, is a major reason Indonesia is the world’s third-biggest emitter of greenhouse gases and is driving species like Sumatran tigers to extinction.

Smart’s credibility took a blow last month when auditors Control Union Certification and BSI Group, authors of the independent verification report, complained that it had misrepresented elements of their findings.

The company had trumpeted their report as evidence that Greenpeace’s allegations were false, but the auditors said the probe’s “key findings” included that it had violated Indonesian law on forest management.

It also found that Smart had initiated operations on almost 38,000 hectares of land on Borneo before mandatory environmental studies had been completed.

Greenpeace welcomed Burger King’s announcement.

Greenpeace forest campaigner Rolf Skar wrote in a blog: “This is another blow for Sinar Mas, which had hoped its self-commissioned audit would convince corporate customers and the media that it was a sustainable company."

Smart president director Daud Dharsono has rejected any suggestion the company was trying to dodge the findings of its own audit or mislead shareholders.

Agence France-Presse

End of deal: A Burger King franchise is seen on Sept. 2, 2010, in Los Angeles. The US hamburger chain has said it will stop buying palm oil from an Indonesian company accused of destroying rainforests. – AP/Damian Dovarganes

Related Articles:

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CJ Cheiljedang to spend us$300 mln on lysine plant Indonesia

Antara News, Tuesday, August 31, 2010 03:10 WIB

Seoul (ANTARA News/Yonhap/OANA) - CJ CheilJedang Corp., South Korea`s biggest food company, said Monday that it will spend US$300 million to build a lysine plant in the eastern part of the island of Java, Indonesia.

Earlier in the day, CJ CheilJedang broke ground on the plant in Jombang. When completed in 2012, it will produce 100,000 tons of lysine and 50,000 tons of threonine a year, the company said in a statement.

Lysine and threonine are essential amino acids for animal feed.

"We will continue to increase our investment to secure a combined annual production capacity of 550,000 tons of lysine by 2013 and grab a 30 percent share of the global lysine market," Kim Jin-soo, chief executive of CJ CheilJedang, was quoted as saying at the ceremony.

CJ CheilJedang predicted that the plant will raise the company`s global lysine market share to 25 percent, beating its two bigger rivals: China`s GBT and Japan`s Ajinomoto.

GBT currently leads the global lysine market estimated at $2.5 billion, followed by Ajinomoto.

CJ CheilJedang also started producing tryptophan, one of the 20 standard amino acids, in its Indonesian plant last month, challenging Ajinomoto`s 70 percent share of the $100-million global tryptophan market.

Indonesia potential market for halal meat

Antara News, Sunday, July 25, 2010 02:02 WIB | National

Jakarta (ANTARA News) - As the biggest Muslim country in the world , Indonesia is a potential market for `halal` meat from other countries because domestic meat production is not yet able to meet the national needs, an importer said.

"Indonesia is a potential market for halal (edible under Islamic law) meat exporting countries because domestic meat production falls far short of national needs," Executive Director of the Indonesian Meat Importers Association (ASPIDI) Thomas Sembiring said during a dialog on halal products here on Saturday.

He was a speaker at the dialog which was held in connection with the International Halal Business and Food (IHBF) Expo 2010 at the Jakarta Convention Center.

Thomas said that several countries had obtained accreditation from the Indonesian Ulema Concil (MUI) for halal meat export to Indonesia. Countries which had obtained MUI accreditation were Australia, New Zealand, the United States, Canada, Brazil and Ireland.

The Indonesian government saw three aspects to provide accreditation for a country with regard to its `halal` meat exports, namely animal diseases, food security system and the halal say of slaughtering the animals.

Not all abattoirs of exporting countries could export their meat to Indonesia. The number of slaughter houses with accreditation was only 25 in New Zealand, five in Brazil, two in Ireland and 56 in Australia.

All exporting countries are also required to enclose two certificates of health and halal ones, he said.

He said that about 100 thousand tons of meat were exported to Indonesia in 2009, which was an increase if compared with that in the previous year which stood at 90,000 tons.

Related Articles:

RI becomes world’s halal standard reference

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KFC Indonesia to open 40 outlets this year

The Jakarta Post | Tue, 05/04/2010 11:00 AM

JAKARTA: Publicly listed PT Fast Food Indonesia, the franchise holder of the Kentucky Fried Chicken (KFC) brand in Indonesia, plans to open 40 more outlets this year to take advantage on the growing fast-food market in the country.

The company’s general manager, Gandhi Lee, said in Jakarta on Monday that with the opening of new outlets, Fast Food Indonesia would have a total of 400 KFC outlets by the end of this year.

“With the planned expansion, we hope to be able to increase our sales to Rp 3 trillion [US$333 million] this year,” he was quoted as saying by detik.com. Last year, the company’s total sales totaled Rp 2.45 trillion, with net profits reaching Rp 181.9 billion.

The company, popularly called KFC Indonesia, operates 360 restaurants across the country. — JP

Indonesian Govt Gives Green Thumb-Up To Plant Papua ‘Food Estate’

Jakarta Globe, Arti Ekawati & Muhamad Al Azhari

Wamena women selling cabbage in a Papua market. The government hopes the food estate will transform agriculture in its largest province. (Antara Photo)

The government is moving forward with the country’s first integrated food production zone in Merauke, Papua, a minister told the Jakarta Globe on Sunday.

“Drafting of the [food estate] regulation has been finished and it is ready to be signed by the president,” Agriculture Minister Suswono said.

The food estates, as they are known, are designed to stimulate large-scale investment in the agriculture sector and beef up food security. The developers will be prevented from exporting any of their produce until the nation’s food needs have been met.

If the pilot project, which aims to attract domestic and international investors with a series of tax breaks, is successful, the government hopes to establish similar zones elsewhere in eastern Indonesia.

The completion of the food estate regulation was one of the objectives of the government’s program for its first 100 days.

According to the ministry, the pilot project will see 1.6 million hectares of land in Merauke transformed into an integrated farming, plantation and livestock zone, where companies will grow, process and package their products in one place.

The government plans to give investors financial incentives such as tax breaks and reductions in customs and excise duty, according to the ministry.

The government will also look to streamline the land acquisition process and facilitate immigration for foreign workers.

However, Suswono stressed that “the government will put Indonesian investors in first priority before inviting foreign investor to invest in Merauke.” Overseas investors will have work with a local partner and will be restricted to a maximum 49 percent ownership of any joint venture.

In addition to farming, the project will support a wide range of agricultural businesses including, post-harvesting industries such as sorting and grading, packing, storage and processing as well as agri-tourism.

One million hectares of lands will be available to produce food crops such as rice, soy bean and corn. The rest will be split between plantations, fisheries and livestock. Investors will have to purchase a minimum of 1,000 hectares of land each.

But the development, which will require some residents to sell their land, has met opposition from locals and non-government organizations, who have warned of possible social and environmental problems.

The Indonesian Farmers Union (SPI) has said that the food estate regulation will lead to a “land grab” by big businesses at the expense of locals.

“This will eventually lead [the country] to losing sovereignty in our food [production],” the union said. “Food estates could also lead to feudalism because the role of the indigenous farmers will be just to provide labor to the capital owners.”

Bungaran Saragih, a former agriculture minister, expressed similar concerns. “There is potential for social conflict between the original residents and the newcomers,” he told the Jakarta Globe last month.

SPI said on its Web site that a handful of local investors have showed an interest in the Merauke project so far: PT Bangun Tjipta, Medco Group, PT Comexindo Internasional, PT Digul Agro Lestari, PT Buana Agro Tama and PT Wolo Agro Makmur.

The union also said executives from Binladin Group, a Saudi Arabian conglomerate, have visited Merauke to examine the project’s potential.

At Least Rp 3t Required for Indonesia Sugar Industry, Officials Say

The Jakarta Globe, Arti Ekawati

Workers carrying freshly-harvested sugarcane in South Sulawesi. The government is aiming for Indonesia to become self sufficient in sugar by 2014 and to more than double sugar production by 2025. (Antara Photo)

Indonesia needs an additional Rp 3.1 trillion ($328.6 million) in investment to build 50 new sugar plants required to reach the goal of self-sufficiency in white and refined sugar by 2014.

The funds are needed to build 10 sugar plants with a milling capacity of 15,000 tons of cane per day, 15 plants with a capacity of 10,000 tons per day and 25 plants with a capacity of 6,000 tons per day, according to Achmad Mangga Barani, the director general of plantations at the Ministry of Agriculture.

The country currently has only 61 sugar factories, including 51 factories belonging to state-owned companies. Most are severely outdated.

Achmad said the domestic sugar industry required large-scale investment to maintain and develop sugarcane plantations and processing plants.

“We are working with BRI [PT Bank Rakyat Indonesia] to help create a consortium to fund sugar-plant projects,” Achmad said in an interview with the Jakarta Globe on Thursday.

Adig Suwandi, the secretary of state-owned company PT Perkebunan Nusantara XI, said the high price of sugar has provided an incentive to build factories and plant sugarcane.

Prices have more than doubled this year, and were trading at record highs last week, with white sugar selling at $687 a ton.

“The recent price is still favorable,” Adig said.

However, he cautioned that sugarcane output was often affected by climate conditions.

“We must use the right technology to reduce the impact of climate on sugarcane production,” he said.

He pointed to the extended heavy rains during the early milling season this year, which delayed transportation of cane from plantations to processing factories and reduced sugar content.

The government has set a goal of sugar self-sufficiency by 2014, with targeted output of 5.7 million tons, including 2.96 million tons of sugar for direct consumption and 2.74 million tons for the food and beverage industry.

In addition to generating investment, the government plans to implement new sugar quality standards next year. With the new standards, sugar will no longer being classified into two major categories — white sugar for direct consumption and refined sugar for processing by the food and beverages industry.

Under the new rules, sugar will be classified according to its color and based on its Icumsa rating. The lower the Icumsa rating, the brighter the color and better the quality.

“I hope sugar companies will be ready for the implementation of the new standards in 2010, that they will be ready to produce sugar that is up to the standards, whether for the food and beverage industry or direct consumption,” Achmad said.

Sugar for industrial purposes with lower Icumsa ratings will be sold at higher prices compared to sugar for daily consumption.

Factories not able to meet the higher standards will likely be required to produce raw sugar for further processing by factories.

“We will cooperate with the Industry Ministry and the State Ministry for State-Owned Enterprises to evaluate the companies, which ones will only produce raw sugar and which will produce the cane into sugar,” Achmad said.

Indonesia - US$5 billion farm investment

Meat Trade Daily News

Indonesia government’s large-scale commercial farming or food estate project in Merauke, Papua, is expected to attract fresh investment up to $ 5.3 billion over the next five years.

However, basic and supporting infrastructure, estimated around $266-318 million, must be build first before it could actually attract investors. According to Agriculture Deputy Minister Bayu Krisnamurti, Indonesia government have tried to find some funds for the food estate project.

Several giant companies including Medco, Artha Graha and Sinar Mas have also expressed interest in investing in the Merauke project.

Commercial food estates are actually rare in Indonesia, as crops such as rice, corn and soybeans are usually grown by small scale farmers on plots of two hectares or under.

The government plans to open up an initial 27,000 hectares of plantation in Merauke. The land will be expanded up to 500,000 hectares out of the available 900,000 hectares of potentially usable land in the area. The project is scheduled to start next year.

World Halal Business and Food Expo Held in Jakarta

KOMPAS.COM/GABRIEL ABDISUSANTO, SATURDAY, 21 NOVEMBER 2009 | 7:23 AM

JAKARTA, KOMPAS.com - The Food, Drug and Cosmetics Study Institute at the Indonesian Ulemas Council (MUI) and PT Puteri Cahaya Kharisma (Performax) will hold a world halal summit and halal business and food expo here on July 23-25, 2010.

"The events will be attended by representatives from Muslim countries. Most of them are engaged in food, beverage, banking, distribution, hypermart, and cosmetics industries," Performax President Director Risda Amarina said here on Friday.

As the world’s largest Muslim country, Indonesia played an important role in halal food and beverage industries to protect world Muslim customers. It also had the potential to serve as a source of world halal products and a destination of Muslim tourists, she said.

Indonesia was also open to international trade and therefore, it was very reasonable for the country to play an important role in applying a halal system, she said. According to her, the halal system applied not only to foods and beverages but also to businesses based on Islamic principles.

She said the halal system in Indonesia had covered the food sector and the sharia banking industry as the business supporting sector. However, many business agents and people still had inadequate knowledge of halal concept in an integrated way.

"To familiarize the community with the concept, the institute, along with Performax under the sponsorship of the Trade Ministry, the Culture and Tourism Ministry, the Agriculture Ministry, the Industry Ministry, and the Drug and Food Control Agency (BPOM) would organize the events," she said.

Editor: jimbon

Japanese Investors Eye Purbalingga

Friday, 20 March, 2009 | 17:28 WIB

TEMPO Interactive, Purbalingga: A number of Japanese investors intend to invest in food production in Purbalingga regency. “At least 171 Jpanese companies are interested in investing in crystal coconut sugar produced by Purbalingga,” said Djoko Triwinarso, Purbalingga Secretariat spokesperson, yesterday.

Two investors, Pooki Teading Co and Asaki Yushi Koogyo, said they were ready to build livestock feed and food industries. However, they submitted some requirements, such as open price standards, quality and continuity.

Purbalingga regent, Triyono Budi Sasongko, said he would support the interest of the Japanese investors. “Beside capital investment, we also hope for a process of technology transfer,” he said.

ARIS ANDRIANTO

Bulog chief says RI to export rice not for "showing off"

Banda Aceh  (ANTARA News) - National Logistics Agency (Bulog) Chief Mustafa Abubakar said Indonesia would export rice not for "showing off" its rice self-sufficnecy but because it had to dispose of a rice production surplus. 

"We will export rice not to show off nor for any political purpose but because domestic rice production in 2008 was rather good and has resulted in a surplus," Abubakar said here on Monday. 

The Bulog chief was here to attend a working meeting on rice procurement in all provinces in Sumatra. He said the government was planning to export rice also in an effort to keep the domestic rice price stable. 

"If the rice surplus is not exported, there will be an over supply in the market, and then its price will fall. Though some of the production is exported national rice stocks will remain stable," he said. 

Since 2008, Indonesia has stopped importing rice because Bulog was able to buy up 3.2 million tons of domestic farmers` rice. In 2007, Indonesia was still importing rice from Vietnam and Thailand at a volume of 1.3 million tons. 

"By stopping rice imports, the government was able to save Rp15 trillion. Most of these funds is now flowing to farmers in villages. In the past, the funds flowed to farmers in Vietnam and Thailand," the Bulog said. 

Abubakar said the government was planning to begin rice exports in March 2009. It was believed that the export would not affect stocks at home because the rice to be exported was number one quality rice. 

For stocks procurement at home, Bulog had set a target of 3.8 million tons. "We are optimistic that procurement for 2009 will reach 3.8 million tons," he said. 

Therefore, he said, it was hoped no protracted droughts, floods and pest attacks would happen this year that could affect rice plants during the planting season.

Big project erases `dream' from Dreamland

Claudia Sardi, The Jakarta Post, Pecatu | Tue, 02/10/2009 2:40 PM  

Early this year, a group of 37 warung (food stall) owners at Dreamland Beach in Pecatu had to vacate their beachside businesses and relocate elsewhere. 

The clearance of the beach was ordered by PT Bali Pecatu Graha (BPG), a development company that wants to give the area a multimillion-rupiah rebirth as an investment haven for local and international corporations. 

The development of the 400-hectare Pecatu Indah Resort site has caused alarm among some Pecatu villagers who work at the beach. 

Once a laid-back secret among nudists and surfers, Dreamland became one of the most popular beaches in Bali in recent years, spawning a thriving, informal service industry on the cliff-side. 

"I find it a pity that our warung, built in traditional Balinese style, have all been demolished. People used to love spending their time here, far away from the overpriced and stylish hotels," said I Made Jenar, manager of the new Dreamland Warung. 

For eight years, he owned Boy's Warung right on the beach, serving up barbeques and seafood dinners for people from all over the world. 

Most of the 37 warung were built without permission during the construction interruption between 1998 and 2006, when BPG was hit by the fallout of the Asian financial crisis and the terrorist attacks. 

They have now been replaced by a strip of 20 small concrete shops being built on a raised platform along a dry riverbed that leads to the beach. BPG, owned by Tommy Soeharto, son of the former Indonesian president, has provided locals with legal papers for the properties. 

All the former warung owners are now organized under the Desa Pecatu Adat. 

They employ 50 people, mainly from Pecatu, and have full power over their shops. 

"Our company invested Rp 3 billion for the construction, water and electricity supplies and sanitation facilities in the new warung, and now they're not being maintained properly. Most of the shops are still closed; we are disappointed," said Arturo Seril, BPG project manager. 

The place looks uninhabited and no goods or food are on display for sale, although visitors can still buy drinks and ice cream. 

"We're still figuring out what we want to sell to visitors, and the people have to undergo training because this is a new situation now; we lack experience and are looking for ideas from Geger Beach," Jenar said. 

He added Geger Beach had experienced the same relocation woes and managed to build a new business among local people. 

Another hot topic is the name of the beach. It has been renamed since the original launch of the project by BPG to New Kuta Beach. 

The beach's former and still widely popular name, Dreamland Beach, was given to it by Australian surfers during the construction pause. People approaching the beach are still welcomed by a big Dreamland Beach banner. 

"We will demolish the banner as soon as possible, because we renamed the beach; it is now New Kuta Beach, which has nothing to do with dreams. This is reality now." Seril said. 

Many locals are afraid of losing customers, and report that they already see fewer visitors during peak seasons. 

"People used to come here because it was a romantic, natural place with cheap food and accommodation," Jenar stressed. 

The developers are currently building a four-story beachfront restaurant, which will include a spa, bars and clubs. 

"I was shocked when I saw the beach today after two years of being abroad," said visitor Nani Clark Tjokrosuharto. 

"I don't know if Bali needs more clubs; it is slowly losing its natural and cultural spirit, which is what draws people here."

Alfaria Sets Share Prices For IPO

Yohanes Obor, The Jakarta Globe, January 7, 2009 

PT Sumber Alfaria Trijaya Tbk, owner of the country’s Alfamart convenience stores, has priced its shares through initial public offering, or IPO, at Rp 395 each. 

In its prospectus, published on Monday, the company stated it was offering 343,177,000 shares with a total value of Rp 135.6 billion ($12.48 million). This offer price is lower than the company’s previous target of Rp 425 to Rp 475 a share. 

The company earlier said it had decided to limit its IPO to a 10 percent stake given a possible lack of investor appetite amid the current global economic downturn. 

As the market regulator, Bapepam LK, has given its approval, the company will offer the shares from today until Friday before listing on the Indonesian Stock Exchange on Jan. 15. 

Two brokerage firms, PT Ciptadana Securities and PT Indopremier Securities, have been appointed as underwriters for the IPO. 

Ang Gara Hans Prawira, Sumber Alfaria’s finance director, said the company expected to open 400 new outlets in 2009, bringing its total to 2,750. As of June, the company had booked sales of Rp 3.6 trillion and net profit of Rp 44 billion.

RI to import meat from Brazil

The Jakarta Post, Jakarta | Mon, 01/05/2009 8:43 PM  

Indonesia plans to open the way for Brazilian meat imports in an effort to lower domestic meat prices, Agriculture Minister Anton Aprijantono said Monday in Jakarta. 

"We will expand our sources of supply, which now can be from anywhere, but the most important thing is the meat be safe to consume and halal [fit according to Islamic law]," Apriyantono said, as quoted by Antara news agency. 

He said the additional supply of meat from Brazil would be realized immediately depending on how ready importers were to start importing. 

"We will first inform the importers about the regulation but preparations should continue," he said. 

The minister said that besides increasing the supply, importing more meat would also allow for classification of meat into different grades and price categories. 

"At present, all types of meat are priced the same while they are actually classifiable into better cuts for middle-income consumers, for example, and regular for general consumers," he said. 

President Susilo Bambang Yudhoyono has said the government would cut the price of meat following the drop in the global price of fuel oil. (dre)