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.”

RI-Indian bizmen`s cooperation worth 15.12 billion dollars

Antara News, Tue, January 25 2011

New Delhi (ANTARA News) - Indonesian and Indian businessmen have signed 18 memoranda of understanding (MoUs) on investments and development projects worth 15.12 billion US dollars.

The MoUs were signed following a bilateral business forum attended by President Susilo Bambang Yudhoyono and about 500 Indonesian businessmen at Taj Palace Hotel`s Durbar Hall here Tuesday.

The 18 MoUs included investment in important development projects like railway tracks, airports, power plants, shipyards, information technology, fertilizer plants, metal industries, and special economic zones.

The Indian enterprises that signed the MoUs included India GVK, Tata Power, Reliance, ICVL, Adani Group, Trimex Group, and Pipavav Shipyars.

Their Indonesian partners which signed the MoUs included PT Bukit Asam, PT Pupuk Sriwijaya, PT Angkasa Pura I, PT Multipolar, PT PAL, PT PLN, PT Mega Urip Pesona, and PT Eastern Infrastructure International.

The MoUs also involved the provincial administrations of South Sumatra, Jambi, and East Kalimantan, and the district administrations of Kendal and Buleleng.

According to Head of thee Investment Coordinating Board (BKPM) Gita Wirjawan, the MoUs were fixed and would immediately be implemented because the Indian companies had conducted the relevant surveys in Indonesia.

"All will be followed up with the signing of joint-venture agreements. They have actually worked in the past few months."

"They have even visited the heads of district and governor`s offices, BKPM office, and related ministries. So, this is real and will be realized," Gita Wirjawan said.

The investment cooperation between the two business communities would be implemented in rather neglected areas in which the majority of the MoUs on infrastructure and strategic industry projects were located outside Java, he said.

Gita said that about 60 - 70 percent of total worth of the investment had been pledged by four Indian tycoons, namely Ambani Group, Tata Group, Trimex Group, and GVK Group.

Ambani Group wanted to invest in infrastructure and entertainment, while GVK Group offered infrastructure development projects as building a health center for very poor people.

Then, Trimex Group offered smelter and railway track development projects, while Tata Group was interested in investment in the educational, automotive, and infrastructure sectors.

In response to this investment cooperation, Minister of Industry MS Hidayat said President Yudhoyono had asked Indonesia to build partnership with Indian automotive industries as Tata Group for the manufacture of vehicles that could serve inter-village and inter-district routes outside Java island.

"The President pays special attention to automotive production, particularly passenger/cargo vehicles. We want to talk about this," he said.

One such vehicle was sold Rp60 million in India, he said adding that the Indian automotive industries were also interested in building factories in Indonesia.

President Yudhoyono and First Lady Ani Yudhoyono would be in India from January 24 to 26, 2011. This is his second state visit to the South Asian giant since November 2005.

After India, the Indonesian head of state is scheduled to attend the World Economic Forum`s annual meeting in Davos, Switzerland.

The 2011 World Economic Forum would be held on January 26 - 30. Before going to Davos, President Yudhoyono would first make a state visit to India to attend the country`s national day.

R-Power to invest $5bn in Indonesia

TNN, Jan 25, 2011, 02.38am IST

MUMBAI: In what is being seen as one of the largest foreign investments in Indonesia, Reliance Power will infuse $5 billion (around Rs 22,000 crore) in two projects-one each in South Sumatra and Jambi provinces. The investment covers coal mining, setting up of railway lines, ports and power projects.

According to a senior company official, who did not wish to be identified, the project in South Sumatra involves development of a 2- billion MT coal mine, a 200-km railway line, a port and a 2,000-MW power project at a cost of $3.5 billion. The project in Jambi involves another coal mining unit, along with a port, railway line and a small power plant. It will cost $1.5 billion without the power project.

Reliance Coal Resources, a subsidiary of Reliance Power, will sign two MoUs with representatives of the governments of both the provinces in New Delhi on Tuesday. Reliance ADA Group chairman Anil Ambani and Indonesian President Susilo Bambang Yudhoyono are exected to be present during the occasion. Fiscal concessions, including land, are being offered to Reliance Power to make it attractive for them to invest in Indonesia, the official said. The investment for the development of the coal mine, rail & port infrastructure and the power project in Sumatra would be made in the next five years.

In 2010, Reliance Power's wholly owned subsidiary Reliance Coal Resources had acquired three coal mines owned by two companies PT Sriwijaya Bintang Tiga Energi and PT Brayan Bintang Tiga Energi in the South Sumatra province. The three mines are spread over 1,25,000 acres and have over 2 billion MT of coal. The Indonesian government is providing the other concessions as Reliance Power would develop the other projects associated with it which include the railway line, port and power.

Coal from these mines will be exported for Reliance Power's Krishnapatnam Ultra Mega Power Project in Andhra Pradesh. which is based on imported coal and also used for its 2000 mw project in Indonesia. These mines would ensure steady supply to the Krishnapatnam Project and also be more economical than other imported coal. Officials said talks are already on with banks to finance the first project in south Sumatra.

Investors from India to invest US$15 billion in Indonesia

Antara News, Thursday, January 20, 2011

Jakarta (ANTARA News) - Some investors from India will invest US$15 billion in Indonesia this year, head of the Capital Investment Coordinating Board, Gita Wirjawan, said here on Thursday.

"The foreign investment from India will be realized this year. The signing of some of the agreements will be done next week," he said.

He said the Indian investors were interested in infrastructure sectors such as railway, seaport and airport development projects.

They will also enter into shipbuilding, alumina processing and coal mining, he said.

Gita did not tell about the number of the investors who would come to Indonesia but said they include Tata, Adani Group, Power and GBK.

"Usually it would take three to four years to realize investment. But they have already expressed their commitment and some of them have even signed a memorandum of understanding," he said.

According to records the total value of trade between the two countries reached US$12 billion in 2010 rising from US$9.6 billion in 2009.

Indonesia`s exports to India include vegetable oil, raw palmoil, coal, copper ore, cashew nuts, print paper, machinery and electronics, chemical products, natural rubber, balata, glass wares and pulp.

Indonesia meanwhile imports goods such as nylon, organic chemical substance, iron and steel products, purified copper, synthetic fiber and cotton.

Bali Cultural Center to be built in India

The Jakarta Post, Denpasar | Fri, 04/30/2010 10:11 AM

DENPASAR: Bali Hindu Center will be built on a 2-hectare plot near the Ganges River to allow visitors to learn more about the island’s culture and religion.

Indra Udayana from Ashram Gandhi Puri said the center would serve as a cultural and religious bridge connecting Balinese and Indian people. The Ganges is considered a sacred river in Hinduism.

“Every year, millions of people visit the site for spiritual enlightenment,” Udayana said.

“Therefore, it would be quite strategic to introduce Balinese culture to fellow Hindus from around the world,” he said.

The development of the center was an initiative by Hindu leaders such as Pedanda (High Priest) Made Gunung, Ibu Gedong Bagoes Oka and former Bali governors Ida Bagus Mantra and Dewa Made Beratha. — JP

India Invests in Parigi Muotong Power Plant

Tempo Interactive, Tuesday, 06 April, 2010 | 18:14 WIB

TEMPO Interactive, Parigi: Indian investors will expend Rp 120 billion for the construction of an agricultural waste-generated power plant in Parigi Moutong regency, Central Sulawesi. The power plant will have a capacity of producing 10 megawatt electrical power.

A meeting was held on this subject between Parigi Moutong Longki Djanggola and members of the India-Indonesia Friendship Association secretary-general, Dr Gurumukti Nataraja last week.

Rustam Pantalu as the facilitator of the meeting said the Parigi Moutong regency government will get 12 percent of shares from the power plant construction.

Meanwhile, the investors will get 80 percent of the shares. The rest will be given to the local companies. Rustam also said the assets owned by the Parigi Moutong regency government are in the form of lands and streets.

DARLIS MUHAMMAD

Godrej Consumer buys Indonesian co for Rs 1,200 cr

Rs 600-cr Megasari makes household items.

Business Line, Our Bureau, Mumbai, April 6

Godrej Consumer Products (GCPL) has acquired Indonesia-based PT. Megasari Makmur Group for an estimated Rs 1,200 crore, its biggest buy so far. HSBC was the advisor to the transaction.

The Rs 600-crore Megasari group is a manufacturer and distributor of household products which include household insecticides, wet tissues and air fresheners. It is less than 15 years old and has plants in West Java.

Megasari is also the second largest player in the household insecticide market in Indonesia having a 35-per-cent share in the category with brands such as the Rs 250-crore Hit (household insecticide) followed by smaller brands Stella (air fresheners) and Mitu (babycare).

Interestingly, one of Godrej's own insecticide brands is called Hit.

Mr A. Mahendran, Director, FMCG Portfolio Cell for the Godrej Group, told Business Line, “The funding for the acquisition has been done through a mix of debt and internal accruals.”

Biggest deal

This is the biggest deal for the group so far and also makes it the third largest acquisition by an Indian company after the Tetley and Glaceau buyouts made by the Tata Group. For GCPL, this is the fifth acquisition. It recently bought the Nigerian personal-care company Tura, two hair care brands in South Africa, and the UK-based Keyline brands. More buys are in offing with the group keen on building a global presence.

In fact, according to analysts, mid-sized Indian FMCG companies are well positioned to go in for similar acquisitions especially when the rest of the world is still recovering from the 2009 global crisis.

Mr Mahendran said, “We will be taking our own products and leveraging the distribution strengths to emerge the leader in Asia's household insecticide business. We are already the leaders in the category in India, but are No 3 globally in this category after SC Johnson and Reckitt Benckiser.”

A cross-functional team comprising Godrej and Megasari employees will be headed by Mr Naveen Gupta, who will help integrate the operations of the two companies.

Mr. Adi Godrej, Chairman, GCPL, said: “Megasari Group provides us a strong platform to establish a significant foothold in Indonesia, which is among the largest consumer markets in Asia. As an emerging market multinational, this acquisition is an important step in our global 3 by 3 strategy, that is, presence in three continents — Asia, Africa and Latin America — through three core categories — home care, personal wash and hair care.”

GCPL has a 49 per cent stake in Godrej Sara Lee and is in the process of buying out the balance in the company. It is also acquiring the global assets of Sara Lee's household insecticide business.

GCPL has already got shareholder approval to raise up to Rs 3,000 crore through a combination of debt and equity which would be used for international acquisitions as well as to buy out Sara Lee.

The GCPL scrip was up 2.19 per cent on Tuesday and closed at Rs 277.60

Related Article:

Indian Group Snaps Up Indonesian Insecticide Maker Megasari

India’s Essar Group Buys Aries Mines in Indonesia

Jakarta Globe, Dinakar Sethuraman, March 26, 2010

India’s Essar Group has agreed to buy the Aries coal mines in Indonesia to secure supplies for its power plants.

The mines, which hold as much as 100 million metric tons of power-station coal, are in the Kutai region of East Kalimantan.

The transaction is expected to be finalised in April and production could start within a year, Essar said in an e-mailed statement, without giving a value for the purchase.

Essar joins Indian utilities including Tata Power and Reliance Power in securing coal assets overseas to supply surging power consumption in the world’s second-fastest growing major economy. More than half of India’s electricity generation is coal-fired, according to the power ministry’s Web site.

“This acquisition adds another 100 million tons to our existing thermal coal resource base of about 275 million tons in India,” Anshuman Ruia, the group’s director, said in the statement.

Extractable reserves from the Aries mines were 64 million tons, the company said.

Essar Power Ltd. is building six power projects in India and will increase generation capacity to 6,100 megawatts by 2012 from 1,220 megawatts.

India’s thermal coal imports almost doubled last year to about 60 million tons from 2008, the Macquarie Group has said.

The Essar Group bought West Virginia-based Trinity Coal Corp. for $600 million to help lock in raw materials for steel plants, adding 200 million tons of coal reserves to Essar’s portfolio, chief executive officer Prashant Ruia said on March 6.

Essar, which is owned by Indian billionaires Shashi and Ravi Ruia, plans to raise $3 billion overseas to fund acquisitions, two people familiar with the matter said this month.

Tata Power, India’s largest non-state electricity generator, agreed to pay $1.3 billion in March 2007 to buy a 30 percent stake in two Indonesian coal mines owned by PT Bumi Resources. Reliance Power, controlled by billionaire Anil Ambani, bought three coal mines in Indonesia in 2008.

GMR Group bought Indonesia coal mining company PT Barasentosa Lestari last year.

Indonesian plywood makers eying Indian market

Antara News, Sunday, January 31, 2010 22:33 WIB

Jakarta (ANTARA News) - Indonesian plywood producers have started eying the rapidly expanding market in India in an effort to restore Indonesia`s domination in the international trade of the commodity.

Deputy Chairman of the Indonesian Wood Panel Association (APKINDO) Abbas Adhar said in Jakarta Sunday that his side has been seriously working on the Indian market. It will soon send an intelligence marketing team to obtain complete information to reach the Inddian market.

It was disclosed in a discussion of the International Tropical Wood Organization (ITTO) in November last year that India`s wood imports had increased by 10 percent.

Each year India imported 16 million m3 of wood, while its domestic consumption reached 85 million m3.

"India had been importing wooden products from many countries, but Indonesia`s wood products to that country has yet to reach some significance," Abbas said.

He said Indonesia was able to fill gaps in India, as it needed a great deal of hardwood. "As most of the Indonesian products imported to that country comprised softwood," Abbas said.

He also said India needed a great deal of plywood of a thickness of 2.7 millimeters. "It just happened that this type of products are leading products in Indonesia, compared to those from Malaysia.

India to Build 10 LPG Canister Factories

Tempo Interactive, Monday, 11 January, 2010 | 14:29 WIB

TEMPO Interactive, Bangalore:The biggest liquid petroleum gas (LPG) producer in India, Confidence Petroleum India Ltd, will build 10 factories in Indonesia this year with a total investment of US$ 16,5 million. The company had previously built an LPG canister production facility in Indonesia in June last year.

The Mumbai-based company’s plan was in line with the Indonesian government’s program to convert the use of kerosene to a three-kilogram LPG canister. The Indonesian government has so far distributed around 70 million of three-kilogram LPG canisters to low-income families for free.

“There is a really high demand in LPG canisters in Indonesia," Confidence Petroleum’s boss, Niti Khara, told The Financial Express in Bangalore last weekend. “Now, we will build 10 more facilities along with the growing demand for gas refills from Pertamina”.

SORTA TOBING

Mundra Mega power project to start before schedule

BS Reporter / Mumbai December 13, 2009, 0:30 IST

The project is likely to be completed in 2012, two years ahead of deadline.

Tata Power Company’s (TPC’s) 4,000-Megawatt (Mw) ultra mega power project (UMPP) coming up at Mundra in Gujarat is likely to start generation by 2012, two years ahead of schedule. According to the bidding requirements, the project’s first unit was to go onstream in 2014.

Coastal Gujarat Power Ltd (CGPL), a special purpose 100 per cent subsidiary of Tata Power which is executing the project, has completed 36 per cent work, employing 8,000 people onsite, according to a recent presentation by Tata Power before investors.

For the first 800-Mw unit, 83 per cent of the work for raising the structure for boiler and turbine as well as the deck for turbines and generators has been completed. In case of the second unit, 78 per cent of the work for raising the structure for boilers is complete and work on three other units is progressing. All packages have been issued to the bidders and they have been awarded 87 per cent of the work. A new coal jetty, 400-KV evacuation lines and construction works for coal and ash handling are also progressing. Equipment suppliers have started deliveries.

The 4,000-Mw Sasan UMPP, developed by Reliance Power, is also set to be commissioned ahead of schedule. The commissioning of its first unit was advanced by 16 months to December 2011, as against the original date of May 2013. The second unit will come after three months in March 2012. Main plant construction activities were in full swing and significant progress had been made on coal mine development, Reliance Power had said earlier.

The government plans to award eight-nine UMPPs in all, of which Reliance Power is executing Sasan, Krishnapatanam and Tilaya projects.

Mundra, the first UMPP awarded by the government after a bidding process, requires 11-12 million tonne per annum (mtpa) of imported coal. It has an offtake agreement with KPC and Artumin of Indonesia. Tata Power had picked up a 30 per cent stake in Bumi Resources, which owns these mines. The company was also looking for coal mines in Australia, Mozambique and South Africa, said Tata Power in its presentation.

The company will require eight vessels to ship coal for the project. The company plans to do this through long-term charters and purchase of vessels. Three vessels have been chartered and two Korean-build vessels purchased for delivery in 2011. The company has also floated a subsidiary, Trust Energy Resources Pte Ltd, incorporated in Singapore, for owning ships. Another subsidiary, Energy Eastern Pte Ltd, was incorporated earlier for chartering ships.

The Rs 17,000-crore project will supply Gujarat 1,805 Mw, Maharashtra 760 Mw, Punjab 475 Mw, Haryana 380 Mw and Rajasthan 380 Mw of power. The financial closure of the project was completed in April 2008 on the back of a consortium of lenders such as IFC, ADB, KEIC, KExim and SBI. By the end of the first half of 2009-10, a total of Rs 2,927 crore has been drawn as debt while the company has made an equity investment of Rs 1,037 crore.

Apart from Mundra, Tata Power is developing 5,170 Mw thermal projects and 98 Mw wind energy projects. Currently, Tata Power has 2,786 Mw capacity. An additional 421 Mw was added in 2009.

India's Tata launches water filter for rural poor

BBC News,

Tata Group boss Rajan Tata launches the purifier

The Indian industrial conglomerate Tata Group has launched a new low-cost water purifier, aimed at lower-income households in rural areas.

The Tata 'Swach' purifier is less than one metre tall, and does not need running water or electricity to work.

The firm is hoping to revolutionise the business of providing clean water, a lack of which affects almost one billion people globally.

Tata says the device is the result of a decade of research and development.

The Tata Group includes India's largest carmaker Tata Motors, and also has interests in steelmaking, IT, and chemicals.

Its Swach water device - named after the Hindu word for clean - will cost under 1,000 rupees ($21.5; £13), according to one Indian report.

It uses ash from rice milling to filter out bacteria, and also uses tiny silver particles to kill harmful germs that can lead to diseases like diarrhoea, cholera and typhoid.

The health consequences of poor water quality are enormous for developing countries like India, with millions of people affected.

Trying to provide safe drinking water for them has cost the government billions of rupees, but it continues to be a major hurdle.

C&O to invest $100m next year

Benget Besalicto Tnb., The Jakarta Post, Jakarta | Mon, 10/05/2009 9:01 AM

Coal and Oil (C&0) Group of India plans to invest up to US$100 million in Indonesia next year to acquire coal mines and buy more ships to strengthen its position in coal trading in the country,

“We see Indonesia, as a major producer of coal, as the right place to invest. It is part of our strategy to secure our coal supply in the long term,” the Group’s president director and CEO Ahmed A. R. Buhari said last week in an interview.

Buhari pointed out that the coal mine his company planned to acquire should have a production capacity of at least five million tons per year, whether in Sumatra or Kalimantan.

“We’ll use it to fire our Coastal Energen power plant in India that will have a generation capacity of 1,200 megawatts when it starts operation in 2012,” he said.

The company is developing a coal-fired 2,400 megawatt Coastal Energen power plant. The first phase of it will be in operation in 2012 with a capacity of 1,200 MW.

“After that we’ll build the second phase that will add another 1,200 MW capacity. For that we’ll need more coal from other countries especially from Indonesia,” he said.

According to him, for the next few years his firm planned to increase its coal imports to India by about 500 percent from 5 million tons currently to 25 million tons per year.

About 70 percent of the coal will come from Indonesia, while the rest will be imported from South Africa and Australia.

So far, to secure its coal supply for the Coastal Energen Power Plant, it has signed a number of deals with several coal firms in Indonesia to buy around 5 million tons of coal per year from the country.

He quoted a report by McKinsey, which said that as India is continuing to raise its per capita consumption of electricity, India’s total imports of coal will increase by almost three times to 100 million tons by 2015. This year alone, India’s coal imports are predicted to jump by 19 percent to 39 million tons from 33 million tons last year.

India generates about 70 percent of its electricity from coal. The rest is generated from hydroelectricity, gas-fired plants and nuclear energy.

It has seen its electricity demand grow at between 8 and 10 percent per year during the last few years. Its current per capita consumption of electricity is 612 kilowatt per hour (KWh), which is higher than Indonesia’s 496 KWh but lower than that of China at 1,898 KWh and Singapore at 8,176 KWh.

The Indian government said it expects per capita consumption to rise from 612 KWh to around 1,000 KWh per year in the next few years.

“Actually, our total demand in India will rise from 120 gigawatt (GW) to around 335 GW by 2017. To do that we will need a total investment of US$600 billion,” he said.

“Coal will still be the most viable source of energy for us in India. Currently, some 70 percent of our electricity needs are derived from coal-fired power plants. Perhaps that will increase further in the future as I don’t see other more viable sources other than coal.”

India expects per capita consumption to rise from 612 KWh to around 1,000 KWh in the next few years.

Nalco to setup smelter plant in Indonesia

Odisha, By our Correspondent, Sat, 19 Sep 2009 18:42:16 GMT

Bhubaneswar ( Orissa ) In a bid to spread its wing in foreign soil the public sector navratna, Nalco will set up a smelter plant in Indonesia. The Govt of Indonesia has approved the foreign investment proposal of the company.

The Nalco is also planning to acquire a coal mine of 200 million tones resever in joint venture for setting up the smelter and power plant.

In view of the abundant reserve of natural gas and availability of cheap electricity in Iran, Nalco has decided to set up a smelter plant in that country. It has prepared a feasibility report and also conducted due diligence.

The public sector alumina major which has posted a a net profit of Rs 1272 cr and an export earning of rs 2085cr in 08-09 , has decided to set up 5 lakh tonne smelter plant and 1250 MW power plant at Brajaraj nagar in Jharsuguda district. The proposal has been conditionally approved by Govt of Orissa.

Similarly it has decided to set up 14 lakh tonne Alumina Refinery in neighbouring Andhra Pradesh. The company has prepared a fesibility report. The centr has accorded propr approval for the mining lease proposals of Andha Pradesh for awarding leas to Nalco.

In the 28th annual general meeting of the company which was held in Bhbubaneswar, it has approved a dividend payout of 50% amounting to rs 322.16 crore.

Speaking in a press conference Nalco has revealed that it has recorded alumina production of 1576500 tonnes during 08-09. Similarly it has reported a highest ever aluminium cast metal production of 361,262 tonnes against 360,457 tonnes in 207-08.

It has also achieved the highest-ever domestic sale of 271274 tonnes of metal,surprising the previous best of 263,494 tonnes in 06-07.

Indonesia, India to boost tourism cooperation

The Jakarta Post, Jakarta | Mon, 08/31/2009 12:13 PM

Indonesian and Indian tourism officials and private stakeholders met in Yogyakarta last week to discuss how to boost tourism cooperation between the two countries, known for their exotic cultural and natural attractions.

"India has become one of the main targets of Indonesian tourism in the past few years," the Indonesian Culture and Tourism Ministry said in a statement.

Jakarta and New Delhi signed a memorandum of understanding on the matter in the Indian capital in 2000.

The ministry has set up a tourism representative office in New Delhi, held exhibitions and invited Indian journalists to promote Indonesian tourism sites.

It noted the number of Indian tourists rose to 112,267 last year, an increase of 23.73 percent from 90,720 in 2007.

The government is seeking to attract between 150,000 and 160,000 Indian tourists this year, a tough challenge due to the economic downturn and the absence of direct flights between Jakarta and New Delhi.

At the two-day 1st Joint Working Group Meeting on Tourism between Indonesia and India in Yogyakarta from Aug. 27 to 28, 2009, both governments agreed to hold media and tour operator junkets for each country and also exchange information on tourism development.

Indonesia also offered its tourism sites to be used as film sets for Bollywood movies, the ministry said.

The Indonesian delegation was headed by Wardiyatmo, the ministry's secretary-general, while the Indian delegation was headed by Sujit Banerjee, secretary of the Indian Ministry of Tourism.

UAE advises Indonesia to sign FTA with GCC

Abu Dhabi (ANTARA News) - The United Arrab Emirates (UAE) has proposed to Indonesia to enter into a Free Trade Agreement (FTA) with the Gulf Cooperation Council (GCC), Indonesian Ambassador to the UAE M Wahid Supriyadi said.

"Singapore already has an FTA with the six-nation GCC and Malaysia is in the process of establishing the link with GCC," Supriyadi told Indonensian journalists in Abu Dhabi on Thursday.

He said the UAE had made the proposal through its foreign trade minister, Sheikh Lubna Al Qarini, at a meeting with Indonesian Trade Minister Mari E Pangestu in Dubai early this week.

The UAE had made the same proposal to ASEAN member countries when their finance ministers, including Indonesia`s Sri Mulyani, held a roadshow in the Middle East recently, he said.

The GCC groups six Gulf countries, namely UAE, Oman, Saudi Arabia, Kuwait, Qatar and Bahrain. The six countries have a combined population of 40 million.

"Since the onset of the global financial crisis, Gulf countries have become interested in doing business with and investing capital in Asia. Indonesia should use this opportunity," said Supriyadi who has been in UAE post for 11 months.

Speaking about the prospects of widening the market of Inonesian goods in the Middle East in general, the envoy said an "Indonesian Festival" was held in the UAE and other Middle Eastern countries in cooperation with Lulu Hypermarket, the largest hypermarket chain in the UAE which also had 74 branches in the Middle Eastern region.

Supriyadi said the GCC had also concluded an FTA with India and was negotiating another FTA with Europe.

He said during her one-day visit to Dubai earlier this week, Indonesian Trade Minister Mari E Pangestu met with her Somalian counterpart, Abdi Rashid Mohamed Abdi, to discuss efforts to step up trade relations between their two countries.

India To Assist Indonesia To Set Up Its First Commodity Exchange

RTTNews , 3/24/2009 4:09 AM ET

(RTTNews) - India has offered to help Indonesia in setting up its first such bourse. The move is part of the proposed India-Indonesia Comprehensive Economic Partnership Agreement or CEPA, for which the talks are scheduled to begin by this year-end, media reports said.

The Joint Study Group that finalizes the CEPA text has asked the commodity market regulator Forward Markets Commission (FMC) and leading commodity exchanges like National Commodity and Derivatives Exchange (NCDEX) and Multi Commodity Exchange (MCX) to hold talks with Indonesian authorities and companies in assisting the setting up of commodity exchanges.

Leading IT companies like TCS, which played a significant role in the set up and running of NCDEX, will also be roped in to develop the back-end IT infrastructure for such an exchange in Indonesia, the release said.

Though Indonesia is one of the largest producers of palm oil, rubber, coal and iron ore, it lacks a functioning commodities exchange, while other Asian nations like India, China, Japan, Singapore and Pakistan all have vibrant commodity bourses. The other main countries with commodity exchanges are Brazil, the US, Argentina, Iran, the Netherlands, UK and the city of Dubai.

Presently, most of the commodity traders from Indonesia hedge their positions in Bursa Malaysia Derivatives Exchange and other Asian bourses.

As far as India is concerned the country not only has thriving commodity bourses, but also required technology to support the functioning.

by RTT Staff Writer

For comments and feedback: contact editorial@rttnews.com

India explores investment opportunities in South Sulawesi

The Jakarta Post, Jakarta | Mon, 03/23/2009 2:42 PM

Indian Ambassador to Indonesia Biren Nanda met with South Sulawesi Governor Syahrul Yasin Limpo to explore investment opportunities between the two countries in Makassar on Monday.

"South Sulawesi holds a very important role in Indonesia. Currently, the province has exported various goods to India, such as pine sap, " Nanda said, as quoted by tempointeraktif.com.

Nanda added that his trip to South Sulawesi was part of a means to tap into Indonesia's massive natural reserves.

Some Indian entrepreneurs have already invested in Indonesia's various business sectors, such as textiles, steel, automotive, finance, natural resources, trade, and coal, he said.

During the visit, Limpo introduced various other potential future export comodities from the region, including cocoa and seaweed.

He added that he looked forward to enhancing further ties between the two Asian nations. (amr)

Kalimantan Gold in India talks on Indonesian coal

Reuters, Mon Mar 16, 2009 7:39am EDT  

JAKARTA, March 16 (Reuters) - Canadian mining firm Kalimantan Gold Corp. is in talks with an Indian power plant on equity participation and a supply deal in a coal project in Indonesia's East Kalimantan, a company official said on Monday. 

Kalimantan Gold (KLG.V), a junior mining firm listed on Canada's TSX Venture Exchange and the AIM Exchange, said in November last year it had signed an option with a local firm PT Indobara Pratama to bring its coal deposits into production and acquire up to an 80 percent stake. 

The firm has an exclusive 90-day option on due diligence as well as for a drilling programme during this period, Kalimantan Gold said in its statement. 

PT Indobara owns a coal mine in East Kalimantan which has potential deposits of between 55-60 million tonnes of 5,400 kcal/kg of coal, Kalimantan Gold said in December. 

"We are inviting them (the Indian power firm) because for this type of coal you need long term and certainty. It's not the type of coal you can sell for spot market," said Mansur Geiger, Kalimantan Gold's vice president for exploration. 

"They will own shares and they will be responsible for the coal off-take," Geiger told reporters, adding the mine is expected to start commercial production in September. 

He did not name the Indian power plant or give the number of shares it might take up in the project. 

The coal mine is expected to produce 1 million tonnes in the first year, gradually increasing to 5 million tonnes within 4-5 years, he said. 

Indonesia' energy ministry expects the country to produce about 230 million tonnes of coal this year, unchanged from 2008 on expected slowing demand. 

But industry officials said the country's coal output may reach 250-260 million tonnes as coal consumption by India and China would help shore up demand.[ID:nDEL409393] 

India's demand for coal is growing by around 8-9 percent a year, outpacing production that is growing by 6 percent as the power sector has not been as badly hit by the credit crunch. 

The government expects Indonesia's coal output to increase to 250 million tonnes in 2010 and 321 million tonnes by 2015. 

(Reporting by Fitri Wulandari; Editing by Ed Davies)

Five countries studying disaster preparedness in West Sumatra

Padang, W Sumatra (ANTARA News) - Five countries will send delegations to conduct a feasibility study on the disaster preparedness in Padang, West Sumatra, an activist said here on Saturday. 

The five countries which will send representatives to Padang are Malaysia, Thailand, India, Sri Lanka and Maldives, executive director of the Indonesian Tsunami Alert Community (Kogami), Patra Rina Dewi, said. 

She said that each country would send two representatives. The delegates will visit disaster preparedness centers and have interviews with the relevant parties on March 17-19, 2009. 

The foreign guests will also attend a regional seminar on "Building Model for Disaster Preparedness" which will be organized by the Kogami and in cooperation the UNESCO. 

Representatives from foreign institutions, such as the International Strategy for Disaster Reduction and the European Union will also take part in the seminar. 

The seminar will also involve the Padang-based University of Andalas, the Indonesian Institute of Sciences (LIPI), the National Disaster Handling Body and the Disaster Alert Journalist Network. 

Dewi said that the seminar was partly organized in connection with the appointment by the government of the Padang city as an exemplary disaster preparedness region in Indonesia. 

Therefore, the seminar will discuss the way of Padang city in preparing its capacity and system in handling disasters, particularly tsunami and earthquakes, she said.