French Miner Eramet to Invest $450m in Halmahera Nickel Project

Jakarta Globe, Camelia Pasandaran, September 07, 2011

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In a move expected to give eastern Indonesia an economic boost, a French mining group plans to invest in a nickel mining project in North Malaku.

“Eramet will have spent around $450 million on this project before the final investment decision,” Eramet’s chairman and chief executive officer, Patrick Buffet, said on Wednesday after meeting with President Susilo Bambang Yudhoyono.

The $450 million is part of the first phase of a $6 billion investment that would develop a nickel and cobalt mine as well as a processing plant on North Malaku’s Halmahera Island, he said.

He added that Eramet would provide a complete investment plan for the project by the end of 2012 after settling permits and agreements on key issues with the Indonesian government.

After the first phase is complete, the Weda Bay Nickel project is expected to produce 35,000 tons of nickel a year. After the second phase, that should increase to 65,000 tons. Buffet said the project could employ about 6,000 people.

It will include the development of several mining centers in Halmahera, a hydro-metallurgical plant and facilities that provide electricity, water treatment and other basic infrastructure like roads and housing.

Hatta Rajasa, the coordinating minister for the economy, said the president welcomed the plan.

“This is one of the biggest investments in eastern Indonesia and will support the government’s Master Plan for the Acceleration and Expansion of Indonesia’s Econo mic Growth,” Hatta said.

Energy Minister Darwin Zahedy Saleh said the project should be completed by 2015.

Eramet has mining operations in New Caledonia for nickel and in Gabon for manganese.

Weda Bay Nickel is a joint venture with Japanese trading house Mitsubishi and Indonesian state-owned miner Aneka Tambang, commonly known as Antam.

Eramet holds a stake of 54 percent, Antam 10 percent and Mitsubishi the remainder.

Carrefour and Philips plan to develop ‘greener’ outlets

The Jakarta Post, Jakarta | Thu, 04/14/2011

Carrefour Indonesia and Philips Indonesia have announced a partnership plan to promoting a “green” retail concept to reduce consumption of energy by using full-LED lighting in a Carrefour outlet at the Emporium Pluit Mall in North Jakarta.

“This concept is the first of its kind in the world, so it makes this Carrefour outlet the ‘greenest’ Carrefour in the world,” Carrefour Indonesia senior public relations manager Satria Hamid said Thursday.

The low-energy lights would eventually be installed at 5 Carrefour outlets.

“These are Carrefour outlets in Jakarta, Tangerang, Yogyakarta, Medan and Makassar,” he said.

Hamid said that by using the LED lighting, the stores would reduce their power consumption by at least 35 percent per lamp.

Robert Fletcher from Philips Indonesia said, “Now is the perfect time for Indonesia to adopt green and energy-safe products because Indonesia is currently facing an energy crisis.”

He added that Philips was open to working with local companies to make Indonesia “greener”.

Bank Mandiri, AXA to acquire ADB

The Jakarta Post, Jakarta | Tue, 04/05/2011

The country's largest lender by assets, Bank Mandiri, announced Tuesday its plan to acquire local insurance firm PT Asuransi Dharma Bangsa, as part of its partnership with French-based insurance company AXA S. A.

“After going through selection and negotiation processes with a number of global insurance firms, we have selected AXA S. A. as one of Bank Mandiri's strategic partners in developing our business,” the bank said in a press statement Tuesday.

“To realize [the partnership], Bank Mandiri is planning to acquire PT Asuransi Dharma Bangsa 'ADB'”,” it added as quoted by tempointeraktif.com.

The acquisition will be undertaken, the bank further explained, by purchasing 120,000 of 126,718 new shares ADB is planning to soon issue.

AXA, meanwhile, will buy the remaining 6,718 new shares, while taking over 73,292 ADB shares currently owned by Bank Mandiri Pension Foundation and PT Estika Yasakelola.

After the transaction completes, Bank Mandiri is set to own 60 percent of ADB's shares, while AXA the remaining 40 percent.

ADB's financial reports said its total assets stood at Rp 61.9 billion (approximately US$7.1 million) in 2010, a 40.5 percent increase from the year before; while its gross premium revenues reached Rp 28 billion, a 21 percent increase from 2009.

Weda Bay Nickel plans US$4.5bl investment in Central Halmahera

The Jakarta Post, Sun, 03/27/2011

Mining firm PT Weda Bay Nikel (WBN) said Sunday it had allotted US$4.5 billion for nickel mining and development of a processing factory in Ternate, Central Halmahera regency.

WBN spokesman Olivier Beligon said initial investments began in 2006 for mining exploration.

Beligon said the company would start constructing a nickel processing factory in 2012 with a total capacity of 65,000 tons.

“The factory will absorb 4,000 workers,” he said, as quoted by kompas.com.

French mining firm Eramet controls 90 percent of WBN shares.

French Firms Eye $10b of Investment in Indonesia

Jakarta Globe, Dion Bisara & Shirley Christie | February 25, 2011

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Indonesia could see upwards of $10 billion in investment from an unexpected source, ministers said, as French companies expressed interest in participating in infrastructure and energy projects.

Finance Minister Agus Martowardojo walks together with
French Economy, Finance and Industry Minister Christine
Lagarde before their meeting in Jakarta on Friday.
(AFP Photo/Bay Ismoyo)

French investment only played a minor role in the country in recent years. According to data from the Investment Coordinating Board (BKPM), its investment in Indonesia only amounted to about $307 million from 2006 to 2009.

Hatta Rajasa, the coordinating minister for the economy, met with French Minister for Economic Affairs, Finance and Industry Christine Lagarde and a delegation of 40 French business leaders on Friday. It is the first visit made by France at a ministerial level in 14 years.

He said French businessmen planned to invest $175 million in a project called the Bandung Metropolitan Railway, a network of railways connecting Cicalengka and Padalarang in the West Java city.

Hatta also said that French companies would participate in a $5 billion nickel smelter project in Halmahera, North Maluku. “They are also interested in geothermal and environmentally friendly industries,” he added.

In a separate announcement, Finance Minister Agus Martowardojo said Eramet, a French firm, would work with Japanese firm Mitsubishi and state-owned miner Aneka Tambang on the Halmahera project.

“There are two investment agreements that have materialized with the French in a short amount of time,” he said.

Lagarde confirmed the intention of French companies to boost their investment in Indonesia, although she declined to provide details.

The French chief executives and chairmen who met with Hatta came from sectors such as energy, transportation, water treatment, weather forecasting, railroad development, construction and retail, she said.

“Those companies are determined to improve investment,” she said, adding that the deals ranged in the billions of euros.

Last week, L’Oreal Group, a Paris-based cosmetics and beauty company, declared its plan to construct its largest factory in Indonesia. The new factory will be built at the Jababeka industrial estate in West Java and is expected to be operational by the end of this year.

The 200,000 square meter plant will be able to produce 300 million units annually by next year, with maximum production forecast at 500 million units.

Apart from boosting investment, Lagarde said, the French want to double the growth rate of trade between the two countries. She said the growth rate of trading, which is currently at 5 percent, is too small.

Last year the total value of two-way trade between the two countries stood at $2.5 billion.

France is the 23rd-largest importer of Indonesian commodities. The main exports to France include electrical transformers, static converters, furniture, cocoa butter, fat and oil.

Indonesia is the 13th-largest importer of French commodities, mainly bulldozers, excavators and other heavy machinery.

Indonesia registered a deficit of $762.9 million in trade with France in 2010. The deficit was spurred by declining exports of commodities and items such as natural rubber, paper pulp, footwear and radio and telephone parts.

France confirms plan to invest in Bandung railway project

Antara News, Fri, February 25 2011

Jakarta (ANTARA News) - France has confirmed its intention to invest 175 million US dollars in Bandung`s Metropolitan Railway project that will connect Padalarang and Cicalengka districts, West Java, a minister said.

"France has confirmed its intention to invest 175 million US dollars in the Padalarang-Cicalengka railway project that is designed to overcome the region`s chaotic traffic congestion problem," Coordinating Minister for Economic Affairs Hatta Rajasa said here Friday after a meeting with French Economic, Finance and Industry Minister Christine Lagarde.

Hatta Rajasa said France was also interested in urban development in Surabaya city, East Java.

On a national scale, France would like to cooperate with Indonesia in developing geothermal energy sources and in extreme climate monitoring efforts being managed by Indonesia`s Meteorology Climatology and Geophysics Agency (BMKG).

"Besides, they are also interested in geothermal energy and environment based industries which will be a government-to-government issue," he said.

France had also confirmed its plan to participate in a nickel smelter project and nickel processing industries in Halmahera, North Maluku, valued at around 5 billion US dollars, through a multinational company, Eramet.

To participate in the nickel smelter project, France was asking for an operation permit valid for up to 50 years while Indonesian government policy only allowed foreign companies to operate for 30 years only with the possibility of extending it every 10 years, Hatta said.

Hatta also hoped the French government would also contribute to the development of Indonesia`s economic regions with an investment of 10 billion US dollars.

Meanwhile, Minister Christine Lagarde said the French economic delegation she was leading was the first to come to Indonesia in the last 14 years. France wanted to step up its investment in and its economic cooperation with Indonesia through ministerial level talks.

"We have also met Vice President Boediono and discussed investment in energy, transportation, water conservation, climate monitoring, railroads, construction and retail companies such as Carrefour," she said.

The French economic delegation`s purpose was also to increase the volume of trade between the two countries which currently still stood at the relatively low figure of about 2.5 billion US dollars.

Editor: Heru

L'oreal building ‘largest factory’ in Jababeka

The Jakarta Post, Jakarta | Thu, 02/17/2011

Paris-based cosmetics giant L’Oreal says it is building a factory that will be the largest factory in the Jababeka industrial area in Cikarang, West Java. The company has allocated US$50 million for project construction.

PT L'Oreal Indonesia president director Jean-Christophe Letellier said Thursday in Jakarta that the factory was expected to have a production capacity of 300 million units per year as soon as it commenced operations, adding that capacity would expand to up to 500 million units by 2015.

He said 25 percent of the products would be targeted at the domestic market, while the rest would be exported.

“The construction began in October last year and is expected to be complete in October this year,” Letellier said, as quoted by tempointeraktif.com.

The factory is being built on a 200-hectare area, he added.

Indonesia receives french`s climate change loan

Antara News, Thursday, June 17, 2010 21:47 WIB

Jakarta (ANTARA News) - Indonesia is to receive a loan of 300 million US dollars from the Agence Francaise de Developpement (AFD) to support the implementation of a matrix policy for its climate change program

An agreement on the loan was signed by Indonesian Finance Ministry official Rahmat Waluyanto, the AFD Director in Indonesia Joel Daligault at the Finance Ministry here Thursday.

The last meeting of the Climate Change Program Loan (CCPL) steering committee had accepted the results of Indonesia`s program in 2009 and decided on several goals and activities for 2010.

The climate change program loan was to support the ongoing policy reforms to deal with climate change issues through a number of objectives or activities embodied in the framework of a triennial policy matrix consisting of mitigation (forestry, energy), adaptation (agriculture, water), and cross-sectoral issue areas.

AFD had provided first and second stage loans of 200 and 300 million US dollars, in a co-financing scheme with the Japan International Cooperation Agency (JICA) in 2008 and 2009, Rahmat said.

JICA would also provide loans amounting to 300 million US dollars to support the third stage and the World Bank would also join the CCPL starting this year, with contributions amounting to 200 million dollars

AFD is a financial institution for development to fight poverty and support economic growth in developing countries and French overseas territories.

France to double investment in Indonesia

The Jakarta Post, Jakarta, Wed, 04/07/2010 9:11 PM

French companies have expressed their interest to double investment up to US$ 2 billion over the next five years in Indonesia, an employer says.

“Seeing your country’s capability in rapid development has assured us to double the investment for the next five years,” director of the Movement of French Enterprises [MEDEF] employers union Thierry Courtaigne told a press conference on Monday as quoted by tempointeraktif.com.

French Ambassador to Indonesia Philippe Zeller said that around 150 French companies have been operating in Indonesia over the past five years. “The number will surely increase,” he added.

Indonesia Gets $100 Million to Improve Java-Bali Power Distribution Systems

Asia Development Bank, 23 March 2010

MANILA, PHILIPPINES - The Asian Development Bank (ADB) and Agence Française de Développement are providing $100 million in loans to help Indonesia overhaul a key power distribution network in a bid to save energy and cut greenhouse gas emissions.

The ADB Board of Directors today approved a loan of $50 million for the Java-Bali Electricity Distribution Performance Improvement Project. The state-owned French development agency is providing a cofinancing loan of the same amount, which will be administered by ADB.

The project will rehabilitate the overburdened distribution network of the two islands, as well as supporting the introduction of energy efficient compact fluorescent lamps and light emitting diodes. The measures will help reduce peak power load demand and system losses, and contribute to sizeable cuts in greenhouse gas emissions. It will support PT Perusahaan Listrik Negara’s (State Electricity Corporation [PLN]) plan to invest about $1.2 billion in efficiency investments in the distribution sector between 2010 and 2014.

“The project will reduce the power sector’s carbon dioxide emissions by 330,000 tons per year, while the substantial energy savings and freeing up of 200 megawatts of equivalent distribution system capacity will allow the state electricity corporation to connect about 1.2 million additional customers to the Java-Bali network,” said Sohail Hasnie, Principal Energy Specialist in ADB’s Southeast Asia Department.

To make energy savings of 400 gigawatt-hours worth an estimated $60 million a year, the project will reconfigure electrical equipment, reconductor or replace old overhead distribution lines and voltage transformers, and introduce new switching stations and capacitors. The distribution of up to 500,000 quality compact fluorescent lamps and light emitting diodes in remote areas will help demonstrate the energy savings and greenhouse gas reduction benefits of efficient lights, which last far longer and consume much less energy than commonly used incandescent bulbs.

The project is expected to be eligible for carbon credits under the Clean Development Mechanism of the Kyoto Protocol, and carbon dioxide cuts could generate close to $200,000 a year in credits for the next 5-7 years, paving the way for potential nationwide distribution of the fluorescent lamps. The value of avoided carbon dioxide emissions as a result of the project is estimated to be around $3.5 million a year.

"Indonesia recently announced that it plans to reduce CO2 emissions by 26% by the year 2020 so PLN and ADB, together with the Government of Indonesia, view this project as a step towards meeting this goal," said Mr. Hasnie.

Indonesia’s energy demand has risen sharply in recent years, but investment in new capacity has not kept pace, resulting in regular power outages in Bali and Java, and up to 90 million people - or 38% of the population - still lack access to electricity. The economy relies on costly fuel oils for over 30% of its generation needs, limiting the government’s ability to fund new infrastructure, and putting Indonesia among the top 20 polluters in the world.

PLN is now planning to sharply expand the use of coal for power generation to reduce reliance on imported oil in the short term, and the project will help offset some of the new emissions. Once the conservation and efficiency benefits of the project are proven, it will be scaled up into a sector-wide initiative, funded by a multitranche financing facility.

ADB’s loan, from its ordinary capital resources, has a 25-year term, including a five-year grace period, with interest determined in accordance with its LIBOR-based lending facility. The Agence Française de Développement loan has a 15-year term, including a five-year grace period, with interest set in accordance with the Euro Interbank Offered Rate. A $1 million grant from the multidonor Clean Energy Fund under the ADB-administered Clean Energy Financing Partnership will finance the distribution of the fluorescent lamps and light emitting diodes, while the state electricity corporation will provide $19 million equivalent, for a total project cost of $120 million.

PLN is the executing agency for the project, which is due for completion by May 2012.

About ADB

Carrefour refuses to sell Alfa, files appeal

The Jakarta Post, Jakarta | Wed, 12/30/2009 9:19 PM

France-based retail giant Carrefour defies the anti-monopoly watchdog’s order to sell its Alfa subsidiary and instead files an appeal against the verdict to the court.

In November, the Business Competition Supervisory Commission (KPPU) found PT Carrefour Indonesia guilty of unfair business practices following the acquisition of the PT Alfa Retailindo.

The commission ordered the retail giant to sell all of its shares in Alfa worth Rp 675 billion (US$ 71.55 million) within a year and fined it Rp 25 billion.

Irawan Kadarman, Carrefour Indonesia's corporate communications director, told The Jakarta Post on Wednesday that the retail giant would not obey the orders for the moment until final legal decision in courts have been reached.

An appeal against the verdict had been filed to the South Jakarta District Court, Irawan said.

“We stay in our stance that Carrefour has in no way been conducting monopoly practices,” he said.

The first court hearing is scheduled on Jan. 11, 2010.

KPPU spokesman Ahmad Junaidi said that Carrefour’s rejection was lack of legal and fact basis.

“It’s their right to file appeal,” he said.

“We, however, are optimistic that the court will rule in favor of us. Our ruling is based on deep analysis and investigation which has resulted convincing evidence that Carrefour has conducted unfair business practices,” he said. (bbs)

Norway launches country group to fight deforestation

Google/AFP

OSLO — Norwegian Prime Minister Jens Stoltenberg said Tuesday he would put together a group of the world's most important rainforest countries in order to fight deforestation.

The group, initiated "as part of our efforts to reach a binding climate agreement in Mexico in 2010," will consist of "the most important rainforest countries, among them Brazil, Indonesia, Guyana, Gabon, Papua New Guinea and others," Stoltenberg said in a statement.

"Developing countries represent 17 percent of the total emission of greenhouse gases," he said, adding "efforts related to rainforests may lead to one third of the emission cuts needed by 2020."

Norway, one of the world's leading oil and gas exporters, has made the fight against deforestation one of its top climate change priorities.

The Scandinavian, non-EU country argued Tuesday that reducing deforestation may lead to the "largest, quickest and cheapest cuts in greenhouse gas emissions."

At the UN Climate summit in Copenhagen, Norway said it would unblock one billion dollars as part of a 3.5 billion dollar aid package to fight deforestation, put together by the United States, Britain, France, Australia and Japan.

The Norwegian prime minister, speaking at his bi-annual press conference, said the deal reached in Copenhagen had "great weaknesses" but that it was an "important step" in the fight against climate change.

Stoltenberg said two of the greatest weaknesses of the last-minute deal reached in Copenhagen were the lack of numbered targets for the reduction of greenhouse gas emissions and the absence of a legally binding agreement.

He however lauded the international consensus of world leaders to tackle climate change, the involvement of emerging countries, developed countries' financing promises and control measures.

Jakarta to have a new batik museum

Hasyim Widhiarto, The Jakarta Post, Jakarta | Mon, 09/28/2009 8:36 PM

Seeking to house its growing batik collection and attract more visitors, the management of the Textile Museum in Central Jakarta is preparing to open a separate batik museum within the existing complex.

“We’re looking to complete the planning [for the new museum] by the end of this year,” museum head Indra Riawan said Monday.

Built in the 19th century as a private French residence, the museum, on Jl. K.S. Tubun, showcases 1,800 items from around the archipelago, most of them batik.

Indra said the museum’s management had planned to renovate the 300-square-meter contemporary-textile gallery to make room for the new batik museum.

He declined to say when the new museum would open, with funding still being sought from the city administration before the start of renovation.

“We have so far secured a commitment from the Indonesian Batik Foundation to put some of their collections in the new museum,” Indra said.

3 Islands in Riau Find That Not All Are Free in FTZs

The Jakarta Globe, Teguh Prasetyo & Dian Ariffahmi, April 3, 2009

Despite the designation of three Riau islands as free trade zones, the government will continue to control the import of primary commodities like sugar and rice into these areas, Diah Maulida, the director general of foreign trade at the Trade Ministry, said on Thursday.

“The flow of goods, especially staple foods, will remain controlled by the central government,” Diah said. “Designating the Batam, Bintan and Karimun islands as a free trade zone does not mean there will be an uncontrollable flow of goods to and from the islands.”

Collectively, the free trade zones are known as BBK.

Trade Minister Mari Pangestu officially handed over the authority to issue licenses to the free trade zone board on April 1.

Despite the fact that the FTZ board expects the three areas to boost exports significantly and generate an estimated 130,000 jobs, Indonesia for decades has hesitated to grant the areas full free trade status.

Batam was given limited status as far back as 1978, affording companies exemption from import duties and income and value-added taxes for export-oriented industries. However, since the start, state, regional and local governments have been ambivalent about granting full status over concerns that it would lead to an uncontrollable flow of goods and result in harm to local producers.

In October 2007, the government, in theory, passed legislation granting the three islands within shouting distance of Singapore full free trade status. But the official launch didn’t come until January and authorities are keeping a wary eye on it. As of that date, all goods flowing to and from the region are subject to Finance Ministry regulations on tax exemptions and customs and excise, Dian said

Licences to authorized exporters and importers will be strictly controlled by the BBK authority board, known as the Dewan Kawasan FTZ, chaired by Ismat Abdullah, the Riau Island governor. The board, she said, is evaluating the performance of exporters and importers.

“At least 118 companies have gotten licenses to export or import their goods to and from the BBK region,” she said.

The import-export companies must make master lists of the products they intend to trade.

“The master list is also a valuable source of reference for customs and excise offices to control the flow of goods to and from the region,” she said.

Import-export rights are to be granted in stages, with the first to be given to liquor and salts. Other commodities such as textiles, steel, plastics, agricultural machinery and some electronic products will be next.

Last week, the Indonesian Association of Forwarder and Expedition Companies, or Gafeksi, proposed that the FTZ authority include the Batam seaport as an international logistics hub for ports in Jakarta, Medan in North Sumatra, Surabaya and Bitung in North Sulawesi. Collectively, the move could save logistics operation costs of as much as Rp 85 trillion ($7.48 billion) per year, the association said.

The Batam seaport management is expecting an unnamed French investor to invest.

KLM upbeat on Indonesian market, brings in new aircraft

Novan Iman Santosa, The Jakarta Post, Jakarta | Wed, 04/01/2009 2:56 PM

KLM, the Royal Dutch Airline is upbeat about the Indonesian passenger market, describing it as a strong one, despite the current global economic downturn.

"Indonesia is withstanding the global crisis quite well while Singapore, Australia and New Zealand are hit much harder," Air France KLM general manager for the region (comprising Singapore, Indonesia, Australia and New Zealand), Paul Rombeek, told reporters Monday.

"However, we do see worldwide that all economies are in trouble."

Rombeek, appointed in February, quoted IATA suggesting airlines worldwide might suffer losses of up to US$4.6 billion this year.

Meanwhile, Air France KLM country manager Axel Theo Colen said the airline was experiencing a fall of 10 to 20 percent in bookings.

Colen emphasized however that Indonesia reached its budgeted target for the year ending March 31.

"This means that there was growth in Indonesia compared to the 2007/2009 fiscal year," he said.

"Indonesia has big potential despite negative trends in bookings."

Colen, however, declined to reveal any load factor figures from Jakarta saying this was confidential.

KLM serves daily the Jakarta-Amsterdam route via Kuala Lumpur.

Both Rombeek and Colen were speaking before a ceremony to welcome the new Boeing 777 at the Soekarno-Hatta International Airport in Cengkareng, Banten.

Previously the route was served by the 428-seat Boeing 747-400 aircraft which flew the route four times a week. The 280-seat 747-400 Combi (combined with freight) flew the other three times a week.

KLM currently has 15 Boeing 777-200s in its fleet, with two more expected later this year.

The airline also has two Boeing 777-300s with two more expected to arrive in May and August.

The 200 series has 327 seats while the 300 series has 425 seats. Both series have 35 business class seats while the rest are economy seats.

The 300 series will fly every Monday, Wednesday, Thursday and Saturday with the 200 series flying on Tuesday, Friday and Sunday.

The use of the Boeing 777 provides an additional 150 seats per week or an increase of 6 percent.

"Not only is the new airplane a reward for the route for good performance but it also offers a better product to passengers," Colen said.

With better technological advances Colen said the Boeing 777 burned less fuel than the 747.

A round trip with a 747 needs 300 tons of fuel while the 777 only needs some 230 tons," he said.

IBM Jumps on the High-Speed Rail to China

Fastcompany, BY Ariel Schwartz, Wed Mar 25, 2009 at 1:50 PM

Oil prices may not be rising quite as dramatically as they were a year ago, but mass transportation--and more specifically, high-speed rail--is still growing in scope and importance. According to the International Monetary Fund (IMF), three quarters of G-20 countries (including France, China, Germany, Indonesia, and Italy) plan to increase funding for transportation infrastructure. And since the cornerstone of any successful transportation network is reliable computer technology, it's not surprising to hear that IBM is jumping on the high-speed rail train.

The computer giant announced plans today for high-speed rail projects in China, Taiwan, and the Netherlands. IBM will be responsible for managing maintenance, logistics, and IT needs in the China and Taiwan projects, while the Netherlands will rely on the company for resource utilization. It's not a small job.

In the Netherlands, IBM will oversee nearly 5,000 trains passing through a network of 279 stations. The Guangzhou Metro Corporation (GZ Metro) transports 2 million passengers per day across 60 stations, and is investing $1.76 billion this year to expand the network.

All of this is great news for denizens of these three countries, but what about those of us in the United States? When do we get our fancy high-speed rail lines? Relatively soon, if the U.S. government's $8 billion in rail-line stimulus funds goes ahead as planned. And when we do get our high-speed rail, IBM is likely to be a part of it. The company, which manages Amtrak's reservation system, is already angling for a chunk of the stimulus money. In the end, IBM might be known more for its ubiquitous transportation software than its consumer technology.

Total Operating its First Fuel Stations in Indonesia

Tuesday, 24 March, 2009 | 12:37 WIB

TEMPO Interactive, Jakarta: PT Total Oil Indonesia is now officially operating its first two fuel stations at Jalan Daan Mogot and Jalan MT Haryono in Jakarta.

The oil company from France plans to build 500 fuel stations in the Asia-Pacific region.

Senior Vice President of Total Refining and Marketing for Asia-Pacific, Thierry Pfimlin, said that Total has now entered the retail market following its success with the company’s lubricant oil in Indonesia.

“It is a strategic and significant market consideration to enter the fuel retail market,” he said yesterday (23/3).

Total is selling its Performance 95 petrol at Rp6,500 while Performance 92 is Rp5,900; and Performance Diesel is Rp6,900.

Managing Director and CEO of PT Total Oil Indonesia, Piotr Janiw, said that Total offers fuels with high performance and best services to consumers.

Total has 16,000 fuel stations throughout the world, with most of them located in Europe.

RIEKA RAHADIANA

Indonesia Rejects Gift of Mirage Airplanes

Friday, 20 March, 2009 | 17:23 WIB

TEMPO Interactive, Jakarta:Indonesia has a gift of one squadron of Mirage combat airplanes from Qatar. According to Defense Minister, Juwono Sudarsono, the offer was rejected because of the limited budget available for their maintenance. “The gift is fine, but the maintenance is costly,” he said in his office yesterday.

The offer was made verbally by the Indonesian Ambassador in Qatar, Rozy Munir, six months ago. According to Juwono, all he needed was for him to send a letter to the Qatar Defense Minister.

At a glance, Juwono said, the eight-year old French airplanes would need high maintenance cost. Meanwhile, the budget of the Defense Department and that of the Indonesian Armed Forces’ budget could not afford such an expense. Moreover, they are currently focusing on the maintenance of cargo planes, such as the Hercules. Juwono added that the gift grant did not mean no costs would be involved. “There would still be costs, like mediator fees,” he said.

The Defense Department refused the offer for other considerations as well. According to Juwono, two problems would occur if the offer was accepted: the budget and the additional burden on the air hitter system, creating chaos to the existing system. The Indonesian Air Force currently owns American F-5 and F-16 combat planes and Russian Sukhois.

In terms of air strike capability, Juwono said, more important is the kind of deterrence technology. Quantitatively, we may not have enough airplanes. “That is why we bought the Sukhoi, even though they are expensive,” he said. Hence, our defensive system is still on a par with Singapore’s, particularly if they buy 24 F-15 airplanes next year.

According to Juwono, the Indonesian Air Force was initially interested in the offer from Qatar. However, the problem would arise in the allocation as well as in the availability of spare parts. “We must be certain the spare part manufacturer will still exist. They could well be extinct,” he said.

Total Indonesia to Allocate Rp21 Billion to Kutai

Friday, 20 March, 2009 | 12:26 WIB

TEMPO Interactive, Balikpapan: Foreign oil and gas company, Total E&P Indonesia, is allocating Rp21 billion for a corporate social responsibility (CSR) program this year. The budget increases 31 percent over last year which was Rp16 billion.

“The program will be for the local community,” said Total's coordinator for Social and Economy Development, Pandu Wahono, Friday (20/3).

He explained that the community of Kutai Kartanegara is prioritized, as gas and oil exploitation is located in this place. He said there were five sub-districts receiving the program: Semboja, Anggana, Muara Jawa, Muara Badak, and Sanga Sanga.

He said that the program will include physical development for health and education services, economic, environmental, and cultural activity.

“It will be for infrastructure development first and then economic empowerment for the community,” he said.

Total Indonesia is an oil and gas company that has been in Kutai Kartanegara since 1968. Its total production reaches 565,000 barrels per day. It supplies 80 percent of its gas to LNG storage in Bontang, East Kalimantan. Its gas production contributes 30 percent to national gas production.

SG WIBISONO

Thai PTTEP quits two Indonesian, Bangladesh projects

Reuters, Tue Mar 17, 2009 11:41pm EDT

BANGKOK, March 18 (Reuters) - Thailand's PTT Exploration and Production (PTTE.BK) said on Wednesday it had decided to withdraw from two petroleum exploration projects in Indonesia and Bangladesh.

The two projects are Indonesia Merangin 1 and Bangladesh 17 and 18, where the potential for commercial discoveries was deemed low after exploration, it told the stock exchange in a statement.

PTTEP, which holds a 40 percent stake in the project and owns two other exploration projects in Indonesia, Bengara-1 and Semai II, said its withdrawal was subject to approval from the Indonesian authorities.

PTTEP has a 30 percent participation interest in the Bangladesh project.

A Bangladeshi official said on Tuesday that France's Total SA (TOTF.PA) and four partners, including PTTEP, had abandoned their rights to explore in the two offshore blocks. [ID:nDHA501448] ($1 =35.76 Baht) (Reporting by Ploy Chitsomboon; Editing by Alan Raybould)