Korean agency offers $700,000 for green school project

The Jakarta Post, Elly Burhaini Faizal,  Jakarta, Fri, 05/18/2012

Marking its first ever joint cooperation with the Education and Culture Ministry and the United Nations Educational, Scientific and Cultural Organization (UNESCO), the Korea International Cooperation Agency (KOICA) is launching a Green School Action Project to help accelerate the development of environmental education in schools in Indonesia.

KOICA Indonesia Office representative, Sungho Choi, said Friday that the Green School Action Project was a collaborative and supportive scheme for the Indonesian government delivered by the KOICA and UNESCO Jakarta office on behalf of the Korean government.

This program is aimed at helping to build the capacity of Indonesian teachers to raise awareness on sustainable development in schools.

“Combating climate change is now the global concern in which joint efforts are essential. No country or region is free from this global issue. It’s highly appropriate for us to invest in education for sustainable development as climate change is not only about changing the environment but it can also lead to poverty,” said Sungho Choi on the sidelines of a three-day regional workshop for “Green Action in East Asia: Centered on Teacher Capacity Building for Climate Change Education”, which began on Friday.

For the project, he said, the KOICA had contributed US$700,000 for building capacity among teachers from 20 pilot schools in Banjarmasin, South Kalimantan, through education on climate change and sustainable development.

About 160 participants from seven countries, comprising Brunei Darussalam, China, Indonesia, Japan, South Korea, Thailand and Vietnam, are attending the workshop. Teachers from the 20 pilot schools for the Green School Action Project in Banjarmasin are also taking part in the event.

“Supporting environmental management and sustainable development is one of the core sectors in bilateral cooperation conducted by the KOICA. I sincerely hope that we can continue to closely work on sustainable cooperation and environmental education to address the impacts of climate change,” said Sungho Choi.

Under the Adiwiyata program, which was launched in 2006, the Environment Ministry, in cooperation with the Education and Culture Ministry, has created green school communities that are able to manage and protect the environment partly to support sustainable development programs that the government is currently working on.

“We know that the Indonesian government already has a good program on green schools called Adiwiyata. We hope that the Green School Action Project can add increased values to that work,” said UNESCO Jakarta’s head of education division, Anwar al-Said.

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Pertamina Kicks Off $1.4b Refinery Upgrade

Jakarta Globe, December 29, 2011

President Susilo Bambang Yudhoyono, at podium, inaugurated a
$1.4 billion upgrade project at a Pertamina oil refinery in Cilacap, West
Java, on Wednesday. (Antara Photo)

               

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Pertamina, the state-controlled Indonesian oil and gas company, has begun a $1.4 billion project to upgrade an oil refinery in Cilacap, Central Java, with President Susilo Bambang Yudhoyono inaugurating the project’s groundbreaking on Wednesday.

The company is upgrading its refinery into a residual fluid catalytic cracking plant that can convert crude oil and its residual components into higher-value products such as gasoline, liquefied petroleum gas and propylene.

The refinery, which can currently process 348,000 barrels of crude oil per day, will be able to process an extra 62,000 barrels a day after the upgrade.

“Refineries are an important chain of Pertamina’s downstream sector business,” Karen Agustiawan, Pertamina’s president director, said in a speech. She added that the refinery’s “commercial operation is expected [to begin] by the end of 2014.”

“More than that,” she said, “Pertamina’s refineries play a vital role in the nation’s energy security.”

Pertamina has six refineries with a total processing capacity of one million barrels per day, and the company produces 41 million kiloliters of gasoline per year.

However, the nation’s fuel consumption has reached 56 million kiloliters of gasoline per year and is expected to increase at an annual average rate of 4 percent. Indonesia must import oil products to fill in the production gap.

The Cilacap refinery produces 3.8 million kiloliters of gasoline every year. The upgrade will boost the refinery’s annual production by 1.9 million kiloliters.

State construction firm Adhi Karya and Goldstar of South Korea won an engineering procurement contract worth $931 million to lead the refinery upgrade project.

RI, China exploring cooperation on renewable energy

Antara News, Mon, December 12 2011

 Indonesia and China which had a big population were seeking to cooperate on renewable energy to anticipate the depletion of fossil energy resources.

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Jakarta (ANTARA News) - Indonesia and China are exploring cooperation on the development of renewable energy, a cabinet minister said.

Forestry Minister Zulkifli Hasan said here on Monday that Indonesia and China which had a big population were seeking to cooperate on renewable energy to anticipate the depletion of fossil energy resources.

"It is important for the two countries to develop renewable energy in the face of declining fossil energy resources. After all, China has relatively advanced technology on renewable energy, such as technology on the utilization of solar and hydro energy," the minister said.

The minister expressed his hope that the two countries would respectively set up a team to follow up on the results of a meeting between him and a Chinese delegation which was led by Cao Jialin, deputy technology minister at the Chinese Science and Technology Ministry.

Earlier, the forestry minister said that timber estate management and wood pellet product were two business sectors that were prospective for investors.

"Wood pellet as fuel is a renewable energy and environment friendly. This is because it involves a process of planting first and then utilizing it," the minister said.

At present, South Korea is encouraging the utilization of bio mass energy in the form of wood pellets in line with the shrinking of fossil fuel resources.

The problem is that the expansion of timber estate in South Korea faced land limitation problem.

The minister said that Indonesia needed to develop its bio mass energy because besides optimizing raw materials from timber estate the business also could absorb many workers.

Forestry Ministry Secretary General Hadi Daryanto said that there were three Korean investors who had been given permits by the ministry to develop timber estates and wood pellet factory with a production capacity of about 40,000 tons.

"The Korean investors needed large lands for their investment. The proposals that have been tabled cover 200,000 hectares and the ministry has approved 140,000 hectares with an investment of Rp6 trillion," he said.

Editor: Heru

South Korea interested in ri`s renewable energy

Antara News, Tue, November 15 2011

Jakarta (ANTARA News) - South Korea is interested in making investment in the renewable energy sector in Indonesia, a deputy minister said.

Energy and Mineral Resources Deputy Minister Widjajono Partowidagdo made the remark after holding a meeting with the South Korean Ambassador to Indonesia at the Ministry of Energy and Mineral Resources (ESDM) here on Monday.

"South Korea is willing to invest in Indonesia, not only in Jakarta but also in other regions. Besides in electricity, South Korea is also interested in the renewable energy sector," he said.

He said that in the energy sector South Korea was very interested in taking part in the development of a receiving terminal storage in Belawang, Medan, North Sumatra.

"South Korea welcomes the development of the receiving terminal storage. They also are open for joining the development of the one in Semarang (Central Java). What is sure is that they will make investment as much as possible," the deputy minister said.

In the meantime, South Korean Ambassador to Indonesia Kim Yong Sun said that Indonesia was a very potential country for investment, particularly in the energy sector.

"We are willing to cooperate in the energy sector and power generation and this is part of our agenda in the ASEAN Summit in Bali," the ambassador said.

Kim said that South Korean President Lee Myung-bak will arrive in Bali during the ASEAN summit this week to hold follow up talks on the investment plan.

However, the South Korean side was not available to disclose the value of investment it would make in the renewable energy sector in Indonesia.

"Renewable energy is quite competitive with our technology," Kim said.

Besides making investment in the energy sector, the South Korean government is also interested in developing electronic industry, garment, shoe and steel industry.

Editor: Aditia Maruli

Siam Cement Eyes $1.1 Billion in Indonesian Acquisitions

Jakarta Globe, August 30, 2011

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Bangkok. Thailand's top industrial conglomerate, Siam Cement Pcl, will bid for two Indonesian petrochemical assets worth an estimated $1.1 billion, the company said on Tuesday, as part of a Southeast Asia expansion drive.

The deals are set to be another indication of increasing foreign interest in Southeast Asia's biggest economy, which is attracting investors because of strong economic growth and a buoyant stock market.

Siam Cement, 30-percent owned by the Thai royal family's Crown Property Bureau, said it was interested in PT Sulfindo Adiusaha, an Indonesian chemical producer controlled by Indonesia's Tanojo family.

South Korea's Hanwha Chemical Corp may also bid for Sulfindo Adiusaha, sources with knowledge of the deal said recently.

Sulfindo's owners, the Tanojo-controlled Victoria Group, are seeking to sell the whole company for about $700 million. Separately, Singapore state investor Temasek Holdings Pte Ltd is trying to sell its 23 percent stake in PT Chandra Asri Petrochemical Tbk in a deal worth an estimated $400 million, two sources with direct knowledge of the deal told Reuters recently.

"We are interested in both petrochemical firms in Indonesia...details of the deals cannot be disclosed at this point because they are quite big deals," Siam Cement Chief Executive Kan Trakulhoon told reporters on Tuesday.

Thailand's top energy firm, state-controlled PTT Pcl is also keen to buy a stake in Chandra Asri, an industry source said last week, possibly through its PTT Chemical Pcl unit.

Siam Cement and PTT group have aggressively scouted for opportunities for assets overseas, especially in Southeast Asia.

Reuters

RI, South Korea set up Green Business Center

Antara News, Fri, July 29 2011

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Jakarta (ANTARA News) - Indonesia and South Korea have set up a Green Business Center (GBC) through which they cooperate to develop green cooperatives, small- and medium-scale enterprises.

Syarief Hasan. (ANTARA)

Indonesia`s minister of cooperatives and small and medium businesses (UKM) Sjarifuddin Hasan said after the dedication of the GBC here on Friday that the institution was a follow-up of an agreement made by the Indonesian ministry of cooperatives and UKM with the Small and Medium Business Administration of the Republic of Korea.

"The GBC is located on the sixth floor of SME Tower Main Building on Jalan Gatot Subroto Kav 94," he said.

He said the GBC is an incubator for boosting cooperation in the development of green technology-based industries for cooperatives and UKM.

"Right now there are already 13 tenants joining in the GBC namely 10 from South Korea and three from Indonesia," he said.

Sjarifuddin hoped the GBC would in the future become the center of entrepreneurship development, transfer of technology especially green technology and boost business partnership between Indonesian and South Korean small and medium businesses.

On the occasion of the Administrator of Small and Medium Business of the Republic of Korea, Kim Dong-Sun, said the GBC would become one of the institutes that would develop green small and medium industries in Indonesia.

"We have the technology which is ready to be implemented while Indonesia has rich natural resources," he said.

He hoped the GBC would encourage transfer of technology to Indonesia for the development of eco-friendly small and medium businesses and further develop business partnership between Indonesian and South Korean small and medium businesses.

In the cooperation agreement South Korea expressed readiness to exchange experience in policy and program development to empower eco-friendly small and medium industries.

Editor: Priyambodo RH

South Korea Tobacco Firm Takes Over Indonesian Company

Jakarta Globe, July 23, 2011

Seoul. South Korean tobacco company KT&G said Thursday it had bought a controlling stake in Indonesian firm Trisakti to tap into one of the world's biggest markets.

KT&G on July 14 signed a deal to buy a 60 percent stake in Indonesia's sixth-largest tobacco firm for 140 billion won ($132.6 million), the company said in a statement.

Trisakti sold three billion sticks of cigarettes last year, KT&G said, citing a confidentiality agreement for its refusal to give more details of the deal.

The Southeast Asian nation of some 240 million people has one of the world's highest smoking rates with almost 70 percent of men aged over 20 indulging.

KT&G sought to benefit from Trisakti's sales networks and production of kretek, a clove cigarette popular among Indonesian smokers, the Maeil Business Newspaper quoted a senior executive as saying.

"We saw Trisakti's business potential due to its share of more than 90 percent in the local kretek market," it quoted KT&G executive Kang Cheol-Ho as saying in a meeting with investors on Wednesday.

KT&G, a former state--run monopoly once known as Korea Tobacco and Ginseng, was privatised in 2002. It has about 60 percent of South Korea's tobacco market.

AFP

Indonesia - Korea to Build Marine and Fisheries Institute in Karawang

Antara News, Wed, July 6 2011

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Jakarta, July 6, 2011 (ANTARA) - The Ministry of Marine Affairs and Fisheries (KKP) and Korea Marine Institute (KMI) agree to build national Marine and Fisheries Institute in Karawang, West Java.This educational institution which was built in 2012 is the development from Fisheries College (STP) and Fisheries Academy (AP) to become a world-class educational institution. "To realize this program, Karawang Regency has prepared a land area of 65 Hectares. While the budget of 300 billion rupiah will be borne together by the Indonesian and Korean Government for each 150 billion rupiah," explained Head of Marine and Fisheries Human Resources Development, Syarief Widjaya, after opening Indonesia-Korea Ocean and Fisheries Forum (IKOFF) today (6/7) in Jakarta.

The effort to realize this program, KKP previously has done the partnership with the Ministry of National Education so that this marine and fisheries institution can be a world-class higher educational institution and become the Top ten marine and fisheries vocational education in the world. This higher educational institution aims to make superior and characteristic experts to compete in the world of work for national or international level, as well as for make the young enterpreneurs in marine and fisheries sector.

The International Seminar of Indonesia Korea Ocean and Fisheries Forum (The 1st IKOFF) filled with the explanation from leading experts and practitioner in marine, maritime, and fisheries from Indonesia and Korea with three sub-themes, which are sustainable preservation and development of marine and coastal; new source of technology and creative activities of marine. One day before, KKP and KMI has done the signing of Letter of Intent (LoI) to increase partnership in marine and fisheries sector between Indonesia and Korea. This agreement signed by Secretary General of Marine Affairs and Fisheries (KKP), Gellwynn Jusuf with the President of Korea Maritime Institute (KMI), Hak So Kim, also witnessed by Chairman of Land, Transportation, and Marine Affairs Comission of the Korean House of Representatives, Kwang Keun Chang.

KKP and KMI will be looking for the opportunity to increase partnership in scientific and marine and fisheries research, development and enhancement the capacity of marine technology, marine resources for alternative energy, sustainable and integrated management of marine ecosystem and coastal, fisheries biological resources conservation, the establishment of marine policy study centre, including marine and fisheries," explained Fadel. According to him, these opportunities will be achieved by training, workshop and increasing of other building capacity, such as research and joint development, exchange of experts, information, and related data. For the implementation of this agreement, KKP and KMI will appoint each vocal point to discuss more about operational stride.

For further information, please contact Dr. Yulistyo Mudho, M.Sc, Head of Data, Statistics and Information Center, the Ministry of Marine Affairs and Fisheries (Mobile: 0811836967)

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

Antara News, Thu, June 9 2011

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

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

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

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

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

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

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

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

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

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

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

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

Editor: Jafar M Sidik

Chandra Asri to build first butadiene factory in Indonesia

Antara News, Fri, June 3 2011

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Editor: Suryanto

S Korean firm to invest in W Java`s water industry

Antara News, Fri, May 27 2011

Bandung, West Java  (ANTARA News) - South Korean tap-water company K-Water has expressed its readiness to engage in the water processing industry in West Java with an investment of about 50 trillion rupiah, a local official said.

"So, South Korean tap water company K-Water is ready to invest 50 trillion rupiah in the clean water processing industry in our region. It is already doing the same thing in Lampung and Bali," West Java Vice Governor Dede Yusuf said here on Friday.

According to Dede Yusuf, if K-Water`s intention to invest is realized, the people`s need for clean water in Bandung city, Bandung district, the town of Cimahi and Bandung Barat district can be fulfilled.

Dede Yusuf said further that currently Bandung Raya needs 7,000 liters of clean water per second, but the designed capacity of the local tap-water company is only about 3,340 liters per second of water. So, there was a shortage of about 3,500 liters per second.

In a bid to meet the public need for clean water, the provincial government should encourage a lot of investment in the production of unprocessed water, the processing steps, the water shipment or transportation and supply pipes.

Dede Yusuf said, the central government through the National Development Planning agency had only allocated some 250 billion rupiah (for West Java) to develop water processing facilities until 2015.

Considering the urgent need for clean water and the current population r growth , it was predicted that the local government would be unable to meet the people`s demand for clean water.

Therefore, the provincial administration needed to cooperate with investors to increase the region`s water processing capacity, Dede Yusuf said.

Editor: Jafar M Sidik

S Korea's Samsung signs contract to build oil facilities in Indonesia

English.news.cn 2011-05-25

JAKARTA, May 25 (Xinhua) -- An senior official said that the Indonesian unit of ExxonMobil Corp. has awarded contracts worth more than 780 million U.S. dollars to South Korean giant Samsung and its Indonesian partner, Tripatra Engineering, to build facilities at Cepu block, local media reported here on Wednesday.

BPMigas chairman Raden Priyono said the project would include building an oil-production facility at the oil and gas field in Central Java. The project was estimated to cost 900 million US dollars, but the consortium bid 780 million U.S. dollars.

"The tender will be completed soon, and its construction is expected to start in August this year," Piryono said on Tuesday. Tripatra is the engineering, procurement and construction services unit of Indika Energy, the nation's leading integrated energy company.

The Cepu block, located in Central Java, is operated by U.S. oil giant ExxonMobil. The field is 45 percent owned by ExxonMobil and 45 percent by state oil and gas company Pertamina, with the remaining 10 percent held by state enterprises, the Jakarta Globe reported.

Cepu's project will contain five separate units, Priyono said, including an onshore production facility, onshore pipes, offshore pipes, an offshore pile and supporting facilities such as an office building. The block is expected raise its disappointing output to 165,000 barrels of oil per day once the facilities are done in 2013.

Editor: Xiong Tong

South Korea eyeing Sunda Strait bridge project

Antara News, Otniel Tamindael, Thu, May 19 2011

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Jakarta (ANTARA News) - As the sixth largest investor in around 1,400 projects in Indonesia at present, South Korea also has an interest to invest in the construction of Sunda Strait bridge.

With cumulative investment of US$3.35 billion over the past 10 years exuding oil, gas, and banking sectors, the country is also eyeing other infrastructure projects in Indonesia.

"South Korea is interested in a number of infrastructure projects in Indonesia, including Sunda Strait bridge development," Coordinating Minister for Economy Hatta Rajasa said in Jakarta on Thursday.

Speaking after a coordination meeting to discuss ways to overcome traffic congestion problems in several Indonesian major cities, the economic minister said South Korean interest in infrastructure projects in Indonesia was discussed at his meeting with the country`s Economic Minister Choi Joong Kyung in Bali on Wednesday.

It was in Bali on Wednesday that the governments of Indonesia and South Korea signed nine memorandum of understandings (MoUs) on investment and economic cooperation between the two countries.

Signed by the two countries` senior government officials and business representatives, the MoUs covered cover partnership agreements in the fields of of among others technology, textiles, machinery, maritime, aerospace, defense and solar photovoltaic.

According to Hatta Rajasa, the business partnership agreements could make Indonesia as South Korea`s main overseas investment hub in the world.

He said the MoUs included hydroelectric power plan projects in Lampung province, shipyard collaboration between Daewoo Shipbuilding and Marnie Engineering and PT Dok & Perkapalan Kodja Bahari to build projects for vessels and offshore facilities.

In addition, Hatta said that the South Korean economic minister also expressed his country`s support to the implementation of the Indonesian Economic Development Acceleration Master Plan (MP3EI). Hatta said.

"At the meeting, South Korean economic minister expressed his country`s support to the implementation of the Indonesian Economic Development Acceleration Master Plan (MP3EI)," Hatta said.

According to him, Choi Joong Kyung was specifically sent by South Korean president to Indonesia to discuss what projects to be undertaken.

"Specifically the country conveyed its interest to participate in the development of Sunda Strait bridge, and the country wanted it to be considered," Hatta said.

He added that South Korea was probably interested not only to be the contractor of Sunda Strait bridge project but also the other ones.

"But we have yet to come to term, just the interest to participate in the projects," Hatta said, adding that the value of investment in the projects reached around US$20 billion.

Earlier in February this year, Hatta said that of the total $20 billion investment plans, $12 billion was already in the pipeline while the remaining $8 billion remained to be discussed.

Some South Korean companies that have expressed commitment to investing in Indonesia are among others Hankook Tires US$1.2 billion investment plans to build tire production plants, Lotte Groups US$5 billion petrochemical factory in Banten, East Java, or in Kalimantan, as well as electronics giants LG and Samsungs estimated US$500 million to US$1 billion investment to expand their businesses in Indonesia.

The South Korean investment plans are part of the Indonesian governments efforts to raise funds in the process of realizing the 2011-2025 economic master plan.

Indonesia is really South Korean main overseas investment hub and therefore many more companies from the country have made commitment to investing in various sectors in East Java, South Sulawesi.

Earlier this month six South Korean companies made commitment to investing a total of of US$52 million in East Java which was formalized in memorandum of understandings (MoUs) singed by their heads before before East Java Governor Soekarwo and Gyeongsangnam-Do Governor Kim Do Kwan.

The six companies from South Korea are Bo-Kyung, C02 Byo, PT Leader Music, PT Seong Dong Abadi, PT Agro Deka Industri, PT Mitra Lestari Hanjaya.

Bo-Kyung, a company engaged in the footwear industry, is to invest US$15 million in Bangil, Pasuruan district.

PT Leader Music would invest US$2 million in the music instrument industry in Mojosari, Mojokerto district.

Also in Mojosari, PT Seong Dong Abadi is to invest US$ 10 million in the chemical industry.

PT Agro Deka Industri with an investment value of US$2 million is to operate in an agricultural industry in Bangil, Pasuruan, while PT Mitra Lestari Hanjaya would invest around US$20 million.

Soekarwo said six more companies from South Korea would also invest in East Java later and the memorandums of understanding was signed when he visited Seoul last April 5-7, 2011.

While in Makassar, South Sulawesi, South Korea`s PEM Korea Co.Ltd also plans to build a polyethylene pipe plant on two hectares of land at Makassar industrial estate in June this year.

PEM Korea Co. Ltd. President Director Jin Hwan Ho signed a cooperation agreement for the construction of the plant with South Sulawesi Governor Syahrul Yasin Limpo at the gubernatorial residence in Makassar on Monday, May 16, 2011.

"In the first phase of the project, we will build two production lines to meet demand in South Sulawesi and neighboring provinces. Later we will develop them into four lines that we project will be able to meet demand in the eastern part of Indonesia," Jin said.

He said PEM Korea Co.Ltd. would team up with two local companies -- PT Hanwoo and Bahana Cipta -- to build the plant which would cost US$5 million to US$10 million.

Editor: Aditia Maruli

South Korea's Daewoo, Hyundai win 2 hydro power plant projects

The Jakarta Post, Jakarta | Tue, 04/12/2011

South Korea's Daewoo Engineering & Construction Co. won a bid for a 60-megawatt hydro power plant construction project worth Rp 2.5 trillion (US$290 million).

“The hydro power plant will be built in North Sumatra,” Dahlan Iskan, president director of state electricity company PT PLN, which held the bid, said Tuesday.

Dahlan said another Korean company, Hyundai Engineering, along with Indonesia's state construction firm PT Pembangunan Perumahan, won another bid for a hydro power plant project in Aceh, with a planned production capacity of 89 megawatts.

The two power plants are expected to be completed in 2013, kontan.co.id reported.

Lotte Group to open 10 fast food restaurants in Jakarta

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

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

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

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

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

South Korea’s Lotte to Build $5b Petrochemical Project in Banten

Jakarta Globe, Camelia Pasandaran | February 22, 2011

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South Korea’s Lotte Group is planning to invest up to $5 billion in a petrochemical project in Banten province, with construction expected to start next year.

“We will start the feasibility study to develop a petrochemical project in Merak, Banten province, this year. The investment is estimated to cost between $3 billion to $5 billion,” Lotte chairman Shin Dong-bin told reporters after meeting with President Susilo Bambang Yudhoyono.

Shin said the group was expecting to start the construction of the plant next year and finish within four to five years.

Gita Wiryawan, chairman of Indonesia Investment Coordinating Board (BKPM), praised Lotte’s plan, saying that “Lotte has been investing in Indonesia, in the retail sector, duty free. It’s great that they are expanding here.’’

Gita added that Lotte would also launch Lotteria, a fast-food chain, in Indonesia.

Lotte has also recently stated its interest in acquiring a stake in Matahari Putra Prima, Indonesia’s largest retailer by market value, through its retail subsidiary. The deal was turned down by Matahari because Lotte’s offer was too low.

Last week, Indonesian ministers flew to Seoul, meeting with President Lee Myung-bak to ask South Korean companies to invest in Indonesia. South Korean firms were said to be interested in investing as much as $20 billion in various infrastructure sectors in Indonesia.

Indonesia is trying to entice more foreign investors to help meet Yudhoyono’s target of an average annual growth rate of 6.6 percent over the remainder of his presidential second term, which will end in 2014.

The country is targeting total realized investment to rise to 230 trillion rupiah this year from 208.5 trillion rupiah last year, Gita said in January.

Seven large Korean companies to expand Indonesian business

The Jakarta Post, Jakarta | Wed, 02/16/2011

Coordinating Economic Minister Hatta Rajasa says that seven prominent Korean-based companies plan to expand their business operations in Indonesia, saying that the country has not yet tapped into its potential.

Hatta shared the plans to the press after a one-on-one meeting with three big companies in Lotte Hotel, Seoul, South Korea.

The seven Korean companies are Samsung C&T Corporation, KCCI/CJ Corporation, Daewoo Shipbuilding & Marine Engineering Co Ltd, Lotte Group, Hyundai/ Kia Motor Company, Hanhwa Group and Hankook Tire Mfg.

“They are companies that are already present in Indonesia and intend to expand their business in the country,” Hatta said as reported by kompas.com.

Related Article:

S Korean firms to invest US$12 bln in Indonesia

Sarinah to begin exporting cassava

Antara News, Sun, February 13 2011 

Jakarta (ANTARA News) - State-owned company PT Sarinah is increasing the number of its trade commodities by purchasing cassava from farmers and exporting it for cattle fodder to China.

PT Sarinah President Director Jimmy M Rifai Gani said here on Sunday that his company was buying cassava from farmers in Central Java`s Cilacap district to meet the need for the commodity from China.

"So far, we have actually planned to export it to South Korea which will re-export the commodity to China. We have not yet met importers in China," he said.

He said that his company would sign a contract agreement with an importer from South Korea. "The first shipment is expected to be carried out in April with a volume of 5,000 tons worth Rp10 billion," he said.

PT Sarinah, he said, will export 5,000 tons of cassava every month to China through an importer in South Korea.

Jimmy said that China had demanded for 13,500 tons of cassava for cattle fodder per month but for the time being his side could only met half of it because his firm had not yet found suppliers at home.

"That is why we are trying to find suppliers in other regions. We will look for ones in Lampung province," he said.

He said that in the long run PT Sarinah will develop cassava farmers in regions so that they would be able to provide supplies for the export needs."This is because most of cassava plantations are cultivated in small scales," he said.

Editor: Aditia Maruli

Mitsubishi to Build $2.8 Billion Indonesia LNG Plant

Bloomberg, By Yuji Okada and Go Onomitsu - Jan 24, 2011

Mitsubishi Corp. Japan’s largest trading company, will build a $2.8 billion liquefied-natural gas plant in Indonesia with partners including Korea Gas Corp., the world’s largest LNG buyer, and state-owned oil company PT Pertamina.

The Donggi-Senoro project on Sulawesi island will produce 2 million metric-tons-a-year of LNG and 47,000 barrels-a-day of condensate from 2014, Mitsubishi said today on its website. PT Pertamina and PT Medco Energi Internasional, Indonesia’s biggest listed oil company, own two gas fields that will supply the Donggi-Senoro LNG plant.

“Profit for Mitsubishi from the project will be limited because it doesn’t have equity for the upstream part,” said Yasuhiro Narita, a Tokyo-based analyst at Nomura Securities Co. “But Mitsubishi will gain know-how of plant operation. That will be an important milestone for the company’s future natural resource businesses.”

Japanese trading houses including Mitsubishi are expected to report record profits during the 2012 Japanese financial year because of higher prices for natural resources, Macquarie Group Ltd. said.

Mitsubishi shares rose 2.1 percent to 2,321 yen at 2:13 p.m. in Tokyo, heading for the biggest one-day gain in two weeks. Medco rose 6 percent to 3,100 rupiah as of 9:52 a.m. local time, set for the steepest increase since Dec. 30. Korea Gas added 0.7 percent or 300 won to 44,400 won.

Partners

The joint-venture PT Donngi-Senoro LNG will sign a contract with Japan’s JGC Corp. to build the plant in Central Sulawesi. PT Donngi-Senoro LNG has signed long-term LNG sales agreements with Chubu Electric Power Co. and Kyushu Electric Power Co. and is negotiating with Korea Gas to finalize a deal.

JGC shares rose 2.6 percent, or 50 yen, to 2,028 in Tokyo as of 2:14 p.m.

A special purpose company, in which Mitsubishi and Korea Gas have 75 percent and 25 percent respectively, will hold 59.9 percent of PT Donngi-Senoro LNG. Mitsubishi solely has 51 percent of the joint venture, according to the statement.

PT Pertamina will hold 29 percent, while Medco’s share will fall to 11.1 percent from 20 percent as Mitsubishi strengthens control.

To contact the reporter on this story: Yuji Okada in Tokyo at yokada6@bloomberg.net; Go Onomitsu in Tokyo at gonomitsu@bloomberg.net.

To contact the editor responsible for this story: Clyde Russell at crussell7@bloomberg.net.

Related Article:

Kogas to join Donggi Senoro LNG plant project

S korean tire maker invests $1.2 bln in RI

Antara News, Thursday, January 20, 2011

Jakarta (ANTARA News) - A South Korean tire maker Hankook Tire plans to build a new tire plant at a cost of US$1.2 billion in Bekasi, West Java.

In the first phase, the company would invest US$353 million in the project scheduled for completion in 2014, Chairman of the Investment Coordinating Board (BKPM) Gita Wirjawan said on the occasion of "Hankook Tire`s Planned Investment in Indonesia" at the BKPM building here on Thursday.

Also present at the event were Industry Minister MS Hidayat, Hankook Tire Vice Chairman & CEO Seung Hwa Suh, and Hankook Tire Executive Vice President Hyun Bum Cho.

Gita said the construction of the plant with a production capacity of 6 million tires a year would be started in the first quarter of 2011.

The plant which will produce tires for four-wheeled and two-wheeled vehicles will be built on 60 hectares of land in Cikarang, Bekasi, West Java. Once the project is completed, Indonesia will become a hub for Hankook tires in Southeast Asia.

Hyun Bum Cho said by building a new plant in Indonesia, the company would be one of the world`s five largest tire producers, with a production capacity of 100 million units a year in 2014.

The company is expected to sell its products from the Bekasi plant in a number of Asian and American countries.

Hankook now has five tire plants, including those in Hungary and China.