Qatar Established $1b Indonesia Investment Fund

Jakarta Globe, Janeman Latul, May 11, 2010

Qatar Holding, the investment arm of Qatar’s sovereign wealth fund, has set up a $1 billion Indonesian fund to invest in infrastructure and natural resources in Southeast Asia’s biggest economy, officials said on Monday.

Gita Wirjawan, head of Indonesia’s investment coordinating board, said that the local investment vehicle, PT Qatar Holding Indonesia, was set up few days ago.

“The main focus area will be on mineral resources and infrastructure projects,” Wirjawan added.

Hilmi Gasim, an assistant to Alwi Shihab, the President Susilo Bambang Yudhoyono’s special envoy for the Middle East, said that originally Qatar and Indonesia had planned to set up a jointly owned fund with Qatar holding an 85 percent stake, but that Qatar eventually opted for a wholly owned fund.

Qatar Holding, which just last week bought the famous London department store Harrods, is estimated to control about $70 billion in assets and has interests in many leading companies in Europe and Unites States.

Reuters

Qatar renews investment commitment

Nani Afrida, The Jakarta Post, Jakarta | Wed, 12/09/2009 10:11 PM

The Qatar Investment Authority, has renewed a 2006 commitment to invest up to US$1 billion in Indonesia to help finance infrastructure projects, an official said.

There is no specific timetable for the investment as yet, as the firm would first carry out feasibility studies on a number of projects in which it is interested in particular energy-related infrastructure projects such as a fuel refinery and power plants, said Aidil Chandra Salim, director for Middle East Affairs at the Foreign Affairs Ministry, Wednesday.

“Finally the Qatar Investment Authority (QIA) has renewed its agreement with the Indonesia government.

“The company has agreed to invest $1 billion in infrastructure development in the country, which is bigger than its [previous] commitment,” Aidil said on the sidelines of a seminar on Middle East investment.

Aidil was referring to the commitment made in an agreement in 2006 when the QIA – which is backed by the Qatari government, and the Indonesian government agreed to jointly set up a form of investment fund worth about $1 billion, with the QIA planning to contribute 85 percent of the total pooled fund.

The plan was never realized due to several problems, including lack of project guarantees and taxation issues. However, a few months ago the two parties managed to resolve these key issues, Aidil said.

Qatar close to buying Indonesian aircraft

Gulf Times

The deal to buy $250mn CN-235 aircraft from Indonesia will be closed before the end of this fiscal year, Indonesia’s special envoy to the Middle East, Alwy Shihab, has announced.

“HH the Emir himself has ordered the purchase, so it’s only a matter of time,” Shihab said.

Alwy Shihab: ‘Looking for a long-term relationship

The envoy, who met Captain of the Qatar Air Force Ali al-Sulaity yesterday, explained the Qataris were still determining how many they would buy and to what use the 25-passenger aircraft -which can be used for evacuation, surveillance, or just civilian flying- would be put to.

Shihab added that he expected Qatar would be buying “many” of these aircraft.

The CN-235 is a medium-range twin-turbo-prop aircraft developed jointly by CASA (Spain) and IPTN (Indonesia) as a regional airliner and military transporter. The aircraft manufactured in Indonesia are used by the Indonesian air force.

Shihab also met Qatar Holding CEO Ahmed al-Sayyid, who confirmed to him that Qatar Holding Indonesia is “all set to be set up.” The company, controlled 100% by Qataris, will invest in Indonesia’s natural resources, power plants, and oil related activities.

“The Indonesians are preparing proposals for these projects that will be funded entirely by the Qatari side,” Shihab pointed out.

He added that Gulf Petroleum- jointly owned by private Qataris and Bahrainis is entering its final stage of bidding over projects in Indonesia.

Shihab also stated that Indonesia, Brunei and Qatar were entering into a tripartite-real-estate-building agreement; that will involve building resorts and hotels in one of the three countries.

“We are trying to increase the number of Qataris going to Indonesia through ads about shopping and cultural tourism,” he said. “I am sure that when Dubai’s Emar project is finished Bali will become a primary destination.”

The special envoy also took the opportunity to thank Qatar for helping Indonesia overcome the effects of the tsunami and helping it build a sustainable economy.

“When we were hit by the tsunami Qatar was at the forefront of countries extending help,” he said. “We are looking, with the Emir, for a long-term relationship between the two countries.”

Fifteen countries to join Tour of Singkarak cycling race

The Jakarta Post, Jakarta | Thu, 04/02/2009 4:06 PM

Fifteen countries have so far expressed commitment to participate in the Tour of Singkarak 2009 cycling race to be held in West Sumatra April 29 to May 3, 2009.

Culture and tourism ministry's director general Sapta Nirwandar said in Jakarta on Thursday that the countries include New Zealand, Japan, Thailand, Taiwan, the Philippines, Malaysia, Iran, Australia, Kazakhstan, Uzbekistan, Russia, and Qatar.

"Around 85 percent of the construction works of new routes for the cycling race has been completed," he said as quoted by Antara state news agency.

Participants of the Tour of Singkarak will cover a total distance of 459 km and compete for a total prize of US$60,000.

The race route is to consist of four segments: Padang-Bukittinggi segment (92.3 km), Bukittinggi-Sawahlunto segment (85.1 km), Sawahlunto-Danau Singkarak segment (90.2 km), and Lake Singkarak- lake Kembar - Lake Singkarak segment (188 km).

The cycling race, which is aimed at promoting tourism in West Sumatra Province, will be accompanied by music concerts, a food festival, and a fun bike event.

West Sumatra Province was visited by a total of 1.4 million tourists, including about 100,000 foreigners, last year, he said.

The province has set a target of receiving at least 1.5 million tourists in 2009.

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.

Indonesia's Medco signs LNG deal with Chubu, Kansai

Reuters, Fri Mar 13, 2009 3:08am EDT  

JAKARTA, March 13 (Reuters) - Indonesia's PT Medco Energi International Tbk (MEDC.JK) has signed a head of agreement to supply a total of 2 million tonnes a year of liquefied natural gas to two Japanese buyers, a company official said on Friday. 

Under the agreement, Medco will sell 1 million tonnes of LNG from the Donggi-Senoro LNG plant on Sulawesi island to both Chubu Electric Power Co (9502.T) and Kansai Electric (9503.T), Medco director Lukman Mahfoedz told reporters. 

"We signed the agreement in February. The contract will run for 15 years," Mahfoedz said without giving details on prices. 

In August last year, state oil firm Pertamina, Medco and Japan's Mitsubishi Corp. (8058.T) signed a natural gas supply agreement for the LNG plant in Sulawesi island. 

The three firms signed an agreement in August 2007 to build the $1.4 billion Donggi-Senoro LNG plant, which will have a capacity of 2 million tonnes per year. 

The plant is expected to be operational by 2012 or 2013. 

Medco expected the government to approve the LNG plant by the end of this month, Mahfoedz said, warning the project would be delayed if approval was not forthcoming. 

"We hope to get the government approval so that we can execute the final investment decision. Otherwise, there will be a delay and we will miss a window (of opportunity)," Mahfoedz said. 

The project has been criticised by legislators for selling the natural gas to the LNG plant too cheaply. 

The plant should give LNG production in Indonesia, the world's third-biggest LNG exporter after Qatar and Malaysia, a much needed boost as the country struggles to juggle exports and local needs. 

The outlook for Indonesia's LNG exports has been put in doubt by plans to divert more of its production to domestic use at a time when its oil and gas output has been under pressure from ageing fields and lags in bringing new production onstream. 

The Southeast Asian country has failed to meet its contractual commitments to traditional markets such as Japan, South Korea and Taiwan due to a slump in production. 

Indonesia has far more gas than oil but it faces limited supplies due to long-term LNG export commitments, which it is reviewing. 

The country has about 182 trillion cubic feet of natural gas reserves. 

(Reporting by Muklis Ali; Writing by Fitri Wulandari; Editing by Ed Davies)

QTel acquires additional 25 % stake in Indosat

TelecomTiger.com, TT Bureau, 09 Mar 2009  

Qatar Telecom (QTel) successfully completed its acquirement of PT Indosat, as it bought an additional 1,314,466,775 shares of the company to now own 65 percent shares as compared to its initial 40.81 percent. 

The acquisition, which was done via dual concurrent tender offers in Indonesia and the United States, represent QTel’s aspiration of becoming a global to 20 telecommunications provider by the year 2020. 

Priced at 7,388 Indonesian rupiahs per share (or the US dollar equivalent per ADS), the offer began on January 20, 2009. Qtel could purchase in the tender offers, which was capped at 1,314,466,775, or about 24.19 percent of Indosat’s total issued and outstanding shares. 

However, this exceeded the maximum number of Indosat shares Qtel could purchase in the tender offers, which was capped at 1,314,466,775, or about 24.19 percent of Indosat’s total issued and outstanding shares. 

Due to the oversubscription, Qtel announced a pro-ration factor of about 56.54 per cent on this basis,  accepted for purchase 1,314,466,775 Indosat shares on a pro rata basis from all tendering shareholders. Tendered shares that were not accepted have been returned to shareholders. 

Qatar Telecom currently has stakes in 16 countries, including the Middle East and Asia and enjoys a customer base of more than 57 million.

Pertamina to Diversify Refinery in $1.7bn Deal

The Jakarta Globe, Mita Valina Liem & Janeman Latul, March 3, 2009 

PT Pertamina on Monday signed a $1.7 billion agreement with Star Petro Energy of the United Arab Emirates and Japan’s Itochu Corp. to expand the state-owned energy producer’s product range and capacity at its oil refinery in Balikpapan, East Kalimantan Province, a senior Pertamina official said at the fifth World Islamic Economic Forum in Jakarta on Monday. 

Rukmini Hadihartini, Pertamina’s processing director, signed the memorandum of commitment for the investment plan, which is aimed at expanding refining capacity to include “bottom products” used to produce plastic bags, car parts and other substances. 

The refinery, with the capacity to process 260,000 barrels of oil per day, now produces premium gasoline, kerosene and other top-end products. It ships bottom product residue to Singapore to be processed into other petrochemical products. 

“We plan to process the residue into more valuable products such as petrochemicals,” said Anang Riskani Noor, Pertamina’s vice president of communications. “We have always exported our bottom products because we don’t have the ability to process them here.” 

Anang said the company was still discussing the kinds of goods to be produced. 

He added that the agreement followed a preliminary deal signed in September with Itochu and Star Petro Energy. 

“In this challenging economic environment it makes sense to be as efficient as possible with our investments,” Karen Agustiawan, Pertamina’s president director, said in a statement. 

“We believe cooperation is the solution. We want to build on our positive partnership experiences in Muslim and non-Muslim countries.” 

Star Petro Energy is a diversified company based in the United Arab Emirates with operations in the airline, mining and insurance sectors. 

Itochu imports and exports goods such as textiles, machinery and oil and gas products. 

Sheikh Saud Bin Saqr Al Qasimi, the crown prince and deputy ruler of the Ras Al-Khaimah Emirate, said Star Petro Energy was investing in a state-owned project rather than a private one because it felt that government-backed projects were safer in the current economic climate. 

It chose Indonesia, he said, because of the country’s wealth of natural resources. 

Pertamina has exploration rights to drill for oil and gas in Malaysia, Libya, Qatar and Sudan. 

The company expects to meet domestic fuel demand by improving the efficiency of its refineries, ports and transportation and distribution networks, it said.

China Exim Releases $186m

The Jakarta Globe, Reva Sasistiya, Mita Valina Liem & Janeman Latul, March 3, 2009

China’s Exim Bank appears to have relented and will free up $186 million in funding for two projects under the first stage of the fast-track 10,000 megawatt energy program of the PT Perusahaan Listrik Negara, Rudiantara, a vice president at the state-owned utility, said on Monday. 

A significant chunk of funding has been held hostage by China in a dispute involving state-owned PT Merpati Nusantara Airlines, which agreed to buy 15 aircraft from a Chinese manufacturer before saying it couldn’t afford them. China has threatened to haul Indonesia before an international arbitration tribunal, seeking $90 million in damages from the stalled $232 million deal. 

The fast-track program aims to bring 10,000 MW on stream by the end of 2010. China had previously agreed to finance most of the estimated $8 billion cost. However, it has demanded higher interest rates for the loans, putting the brakes on projects like a $200 million plant to be built on Sulawesi Island by PT Bosowa Corp. 

After a negotiation team went to China, the dispute was reported to be solved, with China agreeing to draw down the loans based on the project schedule, Rudiantara said on the sidelines of the World Islamic Economic Forum. 

The bank “assured us that they will not change anything, including the interest rate,” Rudiantara said, adding that the disbursement happened 10 days ago. “They will stay with the initial agreement. So far, China has disbursed $1.8 billion to finance coal-fired power plants in Paiton, East Java [Province], and Suralaya in Banten [Province].” 

PLN’s vice president said the Chinese bank’s refusal to disburse the funds had to do with the deepening world financial crisis, adding that the rest of the funds, which he declined to quantify, were still being discussed. 

The two plants approved for financing are expected to generate 1,285 MW starting in early 2010. However, PLN earlier warned that some won’t be completed until 2012. 

The utility’s vice president also confirmed that PLN has been in talks with the Qatar Investment Bank through its Malaysian unit, the Asian Finance Bank, about financing the fast-track program, which will require 33 million tons of low-grade coal annually. Ninety percent of the coal has been secured in long-term contracts with Indonesian producers. 

PLN expects to build 10 power units in Java, which will account for 70 percent of the capacity of the program. Another 25 plants, ranging from 5 MW to 100 MW, will be built in Sumatra, Kalimantan, Sulawesi, Nusa Tenggara, Maluku and Papua. 

The Energy and Mineral Resources Ministry estimates that total domestic consumption of coal in 2009 may rise by nearly 30 percent from 52.57 million tons to 68.3 million tons, while coal production is expected to reach 230 million tons this year, up slightly from 225 million tons last year. 

PLN is expected to consume 41 million to 42 million tons of coal this year, with the remainder being used by industrial enterprises.

Bakrie Builds Plant in Qatar

Wednesday, 18 February, 2009 | 16:58 WIB 

TEMPO Interactive, Jakarta:PT Bakrie Building Industries and Malaysia's TechAir Corporation Sdn Bhd will collaborate in building a construction material plant in Qatar. Bakrie Indo Infrastructure president director, Bobby Gafur Umar, said his company will first conduct a market feasibility test in 2 – 3 years time. "We want to try to penetrate the market first," he said yesterday. 

Bobby said that Bakrie will provide the plant's technology, while TechAir will build the plant. However, he could not yet confirm the plant's investment value and production capacity. Qatar was chosen as the site of the plant because of the market potential. TechAir is also familiar with the construction material market in the Middle East. 

TechAir Executive Chairman Ahmad Ghazali said the collaboration between the two companies will be a joint venture. Current exports consist only construction materials. However, "We will later produce other products, like pipes," Ahmad said. TechAir is a foreign-investment company owned by 100 percent by Malaysia. 

NIEKE INDRIETTA

Indonesia Strikes Oil With Arab Investors

The Jakarta Globe, Janeman Latul & Muhammad Al Azhari, January 30, 2009

Abu Dhabi’s crown prince, Sheikh Mohammed bin Zayed al-Nahayan, is one of two investors from the United Arab Emirates who are set to invest at least $3.7 billion in infrastructure projects and oil refineries in Indonesia by March, said the co-head of the World Islamic Economic Forum on Wednesday. 

“Two foreign investors from the Middle East have already committed around $3.7 billion, out of our forecast of $5 billion in total,” said Tanri Abeng, co-chairman of the Wief and chief commissioner of PT Telekomunikasi Indonesia Tbk, or Telkom. “An investor from Abu Dhabi is in the final stages of investing in infrastructure and energy projects in East Kalimantan and South Sumatra, by teaming up with the two provincial governments.” 

Tanri revealed few specific details about the projects. 

“The Crown Prince himself will be investing, and the total investment will be about $2 billion to $3 billion,” he said. 

Early this month, Tanri said he expected Indonesian companies to sign more than $5 billion worth of deals during the Wief, which will be held from March 2 to 3 in Jakarta. “The figure may end up lower than our projections, but hopefully we will be able to achieve our targets at the forum,” he said. 

The crown prince is the head of Mubadala Development Co., which functions as the main investment vehicle for the Abu Dhabi government. 

Dubai, the second-richest emirate in the UAE, is also interested in investing in Indonesian assets. Tanri said representatives from Dubai were expected to sign a joint-venture agreement with PT Pertamina that would increase the state oil and gas producer’s oil-refining capacity. 

“The value of this investment will be between $1 billion and $1.7 billion,” Tanri said. “[The deal] has come quite far and is now down to lawyer-to-lawyer negotiations. I expect the two sides to actually sign a joint-venture deal during the forum, rather than just a tentative memorandum of understanding.” 

On Jan. 9, Pertamina, Japan’s Itochu Corp. and Dubai-based ETA Star Property Developers announced plans to jointly increase Pertamina’s refining capacity in Balikpapan, East Kalimantan Province, from 260,000 barrels per day to 280,000 bpd by this year.  

Gita Wirjawan, founder of Jakarta-based private equity firm PT Ancora Investment Capital Management, said Indonesia was insulated from the worst of the global economic downturn because of its relatively small export sector. This, along with the country’s mineral resources, made it an attractive investment destination for oil-rich countries. 

“Compared with other countries, we are less dependent on exports. So if you had money, what would you do? It would be better to pour it into this country than an [export-led country] where growth is going to contract,” Gita said. “Don’t forget — investors from Qatar, Abu Dhabi and Saudi Arabia have already invested billions of dollars here.” 

However, Eric Sugandhi, an economist at Standard Chartered Bank, cautioned that inward investment would probably not substantially offset the impact of the global slump. 

“I applaud [the Wief] for the investments, but they won’t come into play until around the second half or early next year.”

Qatar to grab more Indosat shares this week

Mon, 01/19/2009 5:22 PM, The Jakarta Post 

JAKARTA: Qatar Telecom Q.S.C. (Qtel), the Middle East telecommunications group with around 55 million customers, will commence its tender offer for shares of PT Indosat, the nation's second largest telecom firm, this Tuesday. 

"We look forward to a smooth completion of this process, which will put us in a strong position to push ahead with development plans for Indosat," Qtel Group Chairman and Indosat President Commissioner H.E. Sheikh Abdullah Bin Mohammed Bin Saud Al Thani said in a statement. 

Qtel will offer up to 24.19 percent of Indosat's shares, or 1,314,466,775 units of billion Series B Shares, including those listed on the New York stock exchange. Each share is priced at Rp 7,388. 

The offer will end on Feb. 18 and simultaneously in Jakarta (3 p.m.) and New York (3 a.m.) and will take QTel's ownership in the company close to 65 percent. JP/dis

Qatar's Qtel says has not called off Indosat tender

DUBAI, Oct 12 (Reuters) - Qatar Telecom QTEL.QA (Qtel) said on Sunday it had not called off its tender offer for Indonesia's Indosat (ISAT.JK: Quote, Profile, Research, Stock Buzz), but was awaiting government clarifications on foreign ownership rules.

"The tender offer has not been called off and Qatar Telecom is awaiting government clarification on whether foreign ownership limitations should apply before continuing the tender offer process in accordance with Indonesian laws and regulations," the firm said in a statement. 

The statement came in response to Indonesian media reports. 

(Reporting by John Irish, Editing by Lin Noueihed)

Indonesia looking at $5b in investment from Middle East

The Jakarta Post, Jakarta

The government eyes up to US$5 billion in investment from the Middle East this year in financial services, natural resources, infrastructure, property and plantations.

Alwi Shihab, special government envoy to the Middle East, said he was optimistic about the target with the country having secured investment commitments from high profile companies such as Qatar Investment Authority last year.

"If we can bring in investment of $1 billion, like the Qatar Investment Authority, surely we can get high value investors from other Middle East countries, for example Kuwait."

He added that in 2007 countries from the region had invested some $2.55 billion through joint venture companies operating in infrastructure, chemical products and tourism.

Besides the Qatar sovereign fund, other investors who have signed investment agreements include Emmar of Algeria -- for the development of hotel and resort facilities worth $600 million in Lombok, with PT Bali Lombok Tourism Development Center.

To further support efforts to attract more Middle East investors, Alwi added, the government should introduce a more flexible taxation system and issue regulations on sharia-based financial services.

"The Middle East investors have mentioned they are very interested in Indonesia's sharia industry. But the absence of supporting laws has discouraged them."

As a result, "they choose Malaysia, and even Singapore." (nkn)

Qatar investment agency to set up $1b joint venture

The Jakarta Post, Jakarta

The Indonesian government and Qatar's Investment Authority (QAI) have agreed to establish a joint venture to finance a number of infrastructure projects in Indonesia.

QAI will own 85 percent stake of the joint venture, which will have initial capital of about US$1 billion. The Indonesian government, through the Finance Ministry, will own the remaining 15 percent.

"The joint venture will participate in a number of infrastructure, property and electricity projects," Vice President Jusuf Kalla said told reporters after the signing of the agreement on the establishment of the joint venture in Jakarta on Thursday.

The Gulf state's $50 billion sovereign wealth fund is trying to boost its assets in Asia to counter a weak dollar and capture higher returns.

Qatar, a member of the Organization of Petroleum Exporting Countries, owns the world's biggest gas field, and channels surpluses from energy sales to the QIA.

"Our partnership with the Government of Indonesia allows us together to invest for the long term in Indonesia's attractive economy," QIA executive board member Hussain Al Abdulla said in a statement. "This joint venture represents a natural extension of our strategy to increasingly focus investments in Asia."

Meanwhile, the government's special envoy to the Middle East, Alwi Shihab, said that Emaar, an investment company based in the United Arab Emirates, was tentatively scheduled to sign a similar agreement with the government's asset management company, PT Perusahaan Pengelola Aset (PPA).

However, the agreement, which would allow them to develop a US$600 million tourist resort in Lombok, could not be signed immediately as the asset management company was soon to be wound up, he said.

"We hope we can sign the agreement within the next few weeks after the establishment of a new agency to replace PPA ," Shihab was quoted as saying by Bisnis Indonesia.

Three RI companies to set up posphate acid factory in Morocco

Jakarta (ANTARA News) - Three Indonesian companies intend to invest US$500 million in the construction of a phosphate acid factory in Morocco under an investment cooperation agreement with the Middle Eastern country, Indonesia`s special envoy to the Middle East Alwi Shihab said.

Speaking to the press after a meeting with President Susilo Bambang Yudhoyono at the State Palace here Friday, Shihab identified the three companies as PT Petrokimis Gresik, Medco Energi Corporation and Bosowa Group.

A Memorandum of Understanding (MoU) on the three Indonesian firms` plan was expected to be signed in 2008, he said.

The investment would be made under a bilateral investment cooperation scheme whereby Indonesia would import semi-finished phosphate acid from Morocco and the latter would invest in the construction of an ammonia plant in Indonesia.

"It`s a better way to meet our need for phosphate acid than having to import the finished product while Morocco also needs ammonia," Alwi said.

Alwi who met the president to report the results of his work during the past few months and his work plans for the near future, said he was also exploring the possibility of forging the same kind of investment cooperation with Egypt.

In Saudi Arabia and Qatar there were many investment opportunities for Indonesian construction companies, he said.

Citing examples, Alwi said construction company Waskita Karya had been offered to invest in a project worth US$1.5 million in Saudi Arabia. The project would include development of a housing complex and apartments in University City.

Another Indonesian construction company, Adhi Karya, had won a contract to build apartment towers in Qatar, Alwi said.

Seven countries to invest in South Kalimantan

Banjarmasin, South Kalimantan (ANTARA News) - At least nine investors from seven countries have expressed readiness to invest US$7,247,000 in various sectors in South Kalimantan, local Regional Investment Coordinating Board (BKPMD) spokesman Thalib said here on Wednesday.

He pointed out the investors, expected to absorb at least 515 local workers, are from Malaysia, Singapore, South Korea, Australia, South Africa, the Netherlands, and Qatar.

Thalib said conducive security and political climate at home had made it possible for so many countries to invest in South Kalimantan province which is rich in its natural resources.

"Regional security situation at present is the most important factor for the foreign investors to invest in the province," Thalib said.

Of nine companies which had obtained foreign investment approvals (SP-PMA), six are active in mining and export businesses.

The six companies are PT Balangan Energy and Environ Mental Resources of Australia in Balangan district, PT Coal Trans Jaya of South Korea in Banjar Baru town, PT Gunung Harang Trading of Malaysia in Kotabaru district, PT Chindoz Berkat Mineral Technologies of Singapore in Tanah Laut district, PT IOL Indonesia of the Netherlands in Banjarbaru town, and PT Midline Mineral and Energy Resources of Qatar in Banjarbaru town.

Three other companies are PT Borneo Adventure Cruises of South Africa, PT Agro Harapan Lestari of Malaysia, and PT Illuva Mining Technology of Singapore.

Mideast investment in Indonesia meagre: ex-envoy

The Peninsula, 9/22/2007 0:17:28

Abdul Wahid Maktub

DOHA: Investment from the GCC and the rest of the Middle East in Indonesia, which is the world's most populous Muslim country, is quite low, rues a former Indonesian ambassador to Qatar.

Abdul Wahid Maktub, who left Doha early this year having served as Jakarta's envoy for a little more than three years, was here on a brief private visit.

He told this newspaper in a brief interview late last week: "There are misperceptions in the Middle East about the safety of investments back in our country. The misgivings need to be removed."

Having recovered from the financial crisis of the late 1990s, Indonesia is making rapid economic strides. The economic growth rate has been 6.5 per cent and expected to shortly climb to seven per cent.

Maktub, who is practising as a legal consultant in the Indonesian capital-Jakarta now, said that he was on a visit to the region to attract investments back home, especially in the booming real estate market. "I have been to Saudi Arabia and now I am here," he said.

One of the biggest achievements to his credit has been that Dubai's real estate giant, Emaar, has agreed to make an initial investment of $800m in a massive city project in Lombok island, which is close to Bali. "Emaar has recently set up an office in Jakarta," said Maktub.

Here, he said he met Sheikh Faisal bin Qassem Al Thani, Chairman of the Qatari Businessmen's Association, and urged him to pay a visit to Indonesia to explore avenues of investment. "He has accepted the invitation," said the former envoy.

"When I had met Emaar's chief, I had only requested him to visit Indonesia. When he visited Lombok, the first thing he did was pray and immediately after that he told me that he was going to develop a city on this virgin and breathtakingly beautiful island," said Maktub.

Saudi Arabia's Bin Laden Group, he said, has given sub-contract for a 60-storey building it is developing in Dubai, to an Indonesian construction company and is quite happy with its work.

A lot of western countries are investing in real estate projects in Indonesia, but a disappointing thing is that the investment inflow from the Gulf and the rest of the Middle East is nil or negligible. It is because businessmen here have misperceptions about the country. There is so much idle money here and a lot of business and investment opportunities in Indonesia.

"Ours is a huge country. It takes eight hours to fly from the easternmost point to the west. You can, thus, imagine how big the country is, and so are the possibilities of doing business and making investments," said Maktub.

"We are adopting a practical strategy. We want businessmen here to simply visit Indonesia and the rest would automatically follow."

Also with Maktub was Gunawa Witjaksono, one of the top real estate developers of Indonesia.

Gulf Petroleum to invest $6 M in Riau power plant

Jakarta (ANTARA News) - Gulf Petroleum Ltd., a consortium of Qatari and Bahrain companies, will invest US$6 million in a coal-fired power plant in Indragiri Hulu, Riau province.

The company would cooperate with PT Ridlatama Energi Group of Indonesia in building the power plant with a capacity of 2X300 megawatts, Abdul Aziz Addulaimi, the director of Gulf Petroleum Ltd., said after meeting Vice President Jusuf Kalla here Thursday.

PT Ridlatama Energi Group President Director Anang Widjiantoro said work on the construction of the power plant was expected to start late July 2007.

Hopefully, the power plant would be operational starting 2011, he said.

Ridlatama Energi Group is operating 11 coal fields in Indragiri Hulu.

The consortium is also looking into the possibility of investing in a power plant with a capacity of 2X150 negawatts in East Kutai, East Kalimantan.

Pertamina to import LGP from Mideast, Thailand, Australia

Ika Krismantari, The Jakarta Post, Jakarta

State-owned oil and gas firm Pertamina will import some 1.5 million tons of liquefied petroleum gas (LPG) from Qatar and the United Arab Emirates in 2009 to support the government's campaign to gradually replace highly subsidized kerosene with natural gas.

Pertamina marketing and trading director Ahmad Faisal said here Friday that the contract for the LPG imports would soon be signed with Japan-based Ithocu Group, which has been appointed agent for the LPG purchases

Ahmad added that Pertamina was also in talks with the Autralian unit of BP and a Thai company to help meet Indonesia's LPG requirements, which are expected to amount to 3.9 million tons a year by 2010.

Rising LPG imports are inevitable if the government's kerosene-to-LPG conversion program is to be feasible as the country's LPG production is not sufficient to meet domestic demand. At present, about 20 percent of the country's LPG needs, which amounts to about 1.5 million tons a year, is imported.

After being delayed for several months, the program appears to now be back on track. Pertamina has designated 11 companies to supply gas stoves as part of the program.

The gas-stove scheme, which should have commenced in January, was delayed as the companies taking part in the tender for the procurement of the gas stoves failed to meet the requirements.

Pertamina has allocated Rp 200 billion (US$21 million) for the procurement of 4.17 million LPG stoves as part of the scheme, which is expected to be launched next month.

According to the government's estimate, the kerosene-to-LPG conversion program will save up to Rp 21 trillion annually.

One kilogram of LPG is more or less equal in energy content to three liters of kerosene. Pertamina, the only LPG distributor in the country, sells LPG at Rp 4,250 per kg, while heavily subsidized kerosene costs Rp 2,000 per liter.