Nestle Begins Construction of $200m Factory in Indonesia

Jakarta Globe, September 13, 2011

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Geneva. Swiss food giant Nestle said on Monday it began construction of a $200 million (146.7 million euros) factory in Indonesia which will produce infant cereals, chocolate malt drinks and milk powder.

“Our decision to invest USD 200 million in Karawang is consistent with the growth in demand and our confidence in the rapidly developing economy of Indonesia,” Arshad Chaudhry, President Director of Nestle Indonesia said in a statement.

The factory in the town of Karawang, West Java, will create over 600 jobs and is expected to open in early 2013, the company added.

Agence France-Presse

Nestle Indonesia to Invest $100 Million to Make Milo

Bloomberg/Businessweek, By Claire Leow, December 09, 2010

Dec. 9 (Bloomberg) -- Nestle SA, the world’s largest food company, will invest $100 million in Indonesia to make Milo chocolate-flavored products and Cerelac weaning formula as purchasing power grows in Southeast Asia’s biggest economy.

The company’s factory in West Java will be ready by the end of 2012 and initially employ about 300 people, PT Nestle Indonesia President Director Arshad Chaudhry said in an interview in Jakarta on Dec. 6. Nestle will buy about 10,000 tons of cocoa powder annually from local farmers to make Milo, he said. Indonesia is the world’s third largest cocoa producer.

Nestle, which in August raised its full-year forecast as demand in emerging markets boosted first-half sales faster than analysts estimated, will focus on nutrition and wellness products, Chief Financial Officer Jim Singh said then. The maker of KitKat and Nescafe is targeting Indonesian households with a monthly income of between 800,000 rupiah ($89) and 1.45 million rupiah, whose purchasing power is rising, Chaudhry said.

These markets represent “people who are continuously seeking good solutions for providing them nutritious food with the limited money that they would have,” he said. “Products like Milo fit into this well.”

Nestle aims to replicate the success it has had with milk formulas such as its Ideal milk powder, which can be sold in packets for 1,000 rupiah, Chaudhry said. Milk powder and products such as Dancow, Bear Brand sterilized milk and Ideal contribute about half of Nestle Indonesia’s annual sales of about $1 billion, he said.

Dairy Products

After the new factory is operational there are plans to add capacity between 2013 and 2015 to provide for domestic needs, Chaudhry said at a press conference today.

Nestle Indonesia’s largest investment is in Kejayan, East Java, where it expanded milk production with a $100 million investment last year. The factory processes about 700,000 liters of milk bought from 33,000 dairy farms in East Java daily.

This factory, “one of the top 10 factories for Nestle” by volume, will also supply some of the milk needed to make Milo products at the new plant, the executive said.

Nestle has gained 10 percent this year while the Swiss Market Index has lost 0.6 percent. Still, the Vevey, Switzerland-based company’s stock trails the 14 percent climb by Northfield, Illinois-based Kraft Foods Inc., its closest rival.

Fox’s Candy

Nestle Indonesia was established in 1971 and employs about 2,600 people. It has another factory in Lampung, South Sumatra province, producing Nescafe soluble coffee and coffee mixes, and buys about 10,000 tons of green coffee a year from about 10,000 local coffee farmers, he added. Nestle has a plant in Cikupa, Tangerang making confectionery such as Fox’s candy.

Milo is a chocolate-flavored beverage marketed in Southeast Asia as an energy drink, and Nestle Indonesia sells about 15,000 to 20,000 tons of the product a year, a business that is growing 20 percent annually, Chaudhry said.

“We expect similar type of growth in the coming years,” he said. Besides the beverage, other Milo products include Choco Blazz, introduced this year as a snack bar, he said.

Nestle currently ships Milo to Indonesia from factories in Malaysia and Singapore.

Cerelac Formula

With the new factory, Nestle Indonesia will also seek local suppliers for red rice and mung beans for its Cerelac formula, Chaudhry said. Mung beans are an important source of vegetable protein for developing countries.

Other Nestle products contributing to the $1 billion annual sales in Indonesia include Nestea packets selling for 500 rupiah each, said Chaudhry, who worked in Pakistan, Switzerland and China before moving to Indonesia in September 2009.

“When you have limited money, you are very interested to spend that money wisely especially because getting sick is not an option,” he said. “When you get sick, you have to spend more money. To avoid that, there is a great deal of focus in purchasing products which show them good quality and good nutrition.”

--With assistance from Eko Listiyorini in Jakarta. Editors: Suresh Seshadri, Frank Longid.

To contact the reporter on this story: Claire Leow in Singapore at cleow@bloomberg.net; Eko Listiyorini at elistiyorini@bloomberg.net.

To contact the editor responsible for this story: Frank Longid at flongid@bloomberg.net

Nestle Indonesia president director Arshad Chaudry, right, says the world’s largest food company will invest $100 million in Indonesia to make Milo chocolate-flavored products and Cerelac weaning formula as purchasing power grows in Southeast Asia’s biggest economy. (Antara Photo)

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Switzerland offers SBY contribution in corruption eradication

Antara News, Thursday, July 8, 2010 02:21 WIB

Jakarta (ANTARA News) - The President of the Swiss Confederation Doris Leuthard has offered a contribution of the Swiss government in corruption eradication in Indonesia.

"We have a long procedure but we are willing to contribute," President Leuthard said at the Merdeka Palace in Jakarta on Wednesday after having a bilateral meeting with President Susilo Bambang Yudhoyono.

He said his government can make suggestions on corruption eradication upon request.

"We would be able to apply new methods of corruption eradication," he said.

He added that his government understood if corruption is still facing a serious challenge in Indonesia and his government welcomes efforts of the government in eradicating corruption.

"This is important because corruption causes injustice," he said.

On the same occasion, President Yudhoyono expressed his government`s commitment to build a good government and wipe out corruption.

President Leuthard was making a working visit to Indonesia, which includes Jakarta and Surabaya, from July 6 to 9, 2010, for meetings with businessmen and government officials.

By forming the Joint Economic and Trade Commission (JETC) in November 26, 2009, Indonesia had been declared as a priority country as strategic partner of Switzerland in economic cooperation development.

Swiss investment in Indonesia is the 15th biggest in the 1990- 2009 period totaling 740.7 million US dollars covering 120 new projects in the January 2005 - September 2009 period worth USD 313 million.  

Zurich now in Indonesia

The Strait Times, Jun 7, 2010

Zurich Financial Services said the acquisition would mark the first step in its expansion plans in Indonesia. -- PHOTO: INTERNET

ZURICH (Switzerland) - SWISS insurer Zurich Financial Services said on Monday it had gained a foothold in Indonesia's fast growing life insurance market with an agreement to buy 80 per cent of Indonesian firm PT Mayapada Life.

The Swiss group said the acquisition would mark the first step in its expansion plans in Indonesia - one of the world's most populous nations with some 240 million inhabitants - and a building block for business growth in Asia.

Mayapada's eponymous parent group will continue to hold 20 per cent of the company, Zurich said in a statement. The deal is due to be concluded in the third quarter, subject to regulatory approval.

'The acquisition of Mayapada Life is a first step in Zurich Life's expansion plans in Indonesia,' said Mario Greco, chief executive of Zurich's Global Life section. 'The Mayapada Group will be a strong local partner as we seek to build key relationships to grow our business in the Asia-Pacific region.'

Mr Greco also highlighted the 'rapidly growing' portion of the Indonesian population with savings and insurance needs.

Jakarta-based Mayapada Life had gross written premiums of 1.7 million dollars (S$2.4 million) at the end of 2009. -- AFP

Holcim to Spend Up to $500m on New Cement Plant

Jakarta Globe, Ardian Wibisono & Muhammad Al Azhari, April 27, 2010

Cement maker PT Holcim Indonesia revealed on Tuesday that a cement factory it is planning to build in Tuban, East Java, would cost $400 million to $500 million and construction should start before end of the year.

Holcim Indonesia director Jannus Hutapea said the company was currently seeking approval from its Swiss parent company.

“Our CEO is currently in Switzerland to present our plan to expand our capacity. If wet get approval then we will finalize the plan. We are currently also dealing with permits with the local government and we have already obtained the land,” Jannus said.

Irman Andriesjah, Holcim Indonesia’s deputy chief financial officer, said the new factory needed to be built soon because Holcim Indonesia did not have much spare production capacity left at its two existing factories in Java.

“Looking at the growing demand we will hit maximum utilization in a year,” he said.

It would take around two and a half years to build the new factory, Irman said. Once completed, it would add an extra 1.6 million tons a year of production capacity to Holcim Indonesia’s existing 8.3 million tons a year, he said.

With the new factory located in Tuban, Jannus said, Holcim will also improve its distribution efficiency for eastern Java, which would lead to margin gains.

Alif Sasetyo, a cement analyst at PT Mandiri Sekuritas, said that even if Holcim hit its maximum production capacity before the new factory was completed, the company could divert spare capacity from its Malaysian subsidiary to Indonesia to avoid losing market share.

“They still have 1.2 million tons of spare production capacity in Malaysia,” he said.

According to Mandiri Sekuritas data, Holcim is Indonesia’s third-largest cement producer with 13.9 percent of the total market and 19 percent market of the Javanese market.

Alif said the cement industry is expected to grow by at least 7 percent this year, supported by the property sector, which is being boosted by low interest rates and the improving domestic economy. In 2009, cement sales grew by just 0.9 percent, with total consumption reaching 38.41 million tons.

Nestle opens new US$15.5 mln ice cream factory in Philippines

Antara News, Tuesday, April 6, 2010 16:12 WIB

Manila (ANTARA News/Asia Pulse) - Nestle Philippines Inc. recently inaugurated its new ice cream and chilled dairy factory in Pulilan, Bulacan in a major initiative to beef up its production capabilities to serve local market demand with world-class quality products appealing to Filipino taste preferences.

The new facility entailed investments of P700 million (US$15.5 million), including allocations for state-of-the art production equipment and processes.

The factory is situated in a 4.5 hectare land area in Pulilan\'s Barangay Tibag. It was completed in a record 14 months.

Source:
Business in Asia Today - Apr. 6, 2010
published by Asia Pulse

Indonesia`s Merukh wins US$3 bln Swiss contract to supply coal

Antara News, Monday, March 22, 2010 17:36 WIB

Jakarta (ANTARA News/Asia Pulse) - Indonesia\'s PT Merukh Enterprises said it has secured a 30-year contract to supply coal to Swiss buyer Glencore International.

Company chief commissioner Jusuf Merukh said Merukh Enterprises will supply 30 million tons of coal valued at around US$3 billion to the Swiss trading company every year.

He said his company has secured a loan pledge of US$600 million to develop the Batu Licin coal concession.

Source:
Business in Asia Today - March.22, 2010
published by Asia Pulse

Nestle drops Indonesian supplier on rainforest concerns

Money, Sharon Singleton, 17, 2010 | 11:42

Nestle on Wednesday followed food giants Unilever and Kraft in cancelling palm oil supply contracts with an Indonesian company accused of destroying rainforest habitats that are home to endangered orangutans.

The maker of KitKat, Rolo and Coffee Crisp said it was taking the action following a review of its palm oil sources to ensure its suppliers are meeting environmental standards.

The company said it replaced Sinar Mas, Indonesia’s biggest palm oil producer, with another supplier for future shipments.

“We will continue to pressure our suppliers to eliminate any sources of palm oil which are related to rainforest destruction and to provide valid guarantees of traceability as quickly as possible,” the company said in a statement on its website.

“We will not portray palm oil as free of such oils unless such guarantees are clear and reliable.”

The action by the consumer product giants came following pressure from environmental group Greenpeace. Activists from the group staged a protest at Nestle’s headquarters and factories in the U.K., Netherlands and Germany on Wednesday to highlight the problem.

Vevey, Switzerland-based Nestle’s annual use of palm oil has almost doubled in the past three years to 320,000 tonnes, Greenpeace said. The company also uses the product in ice cream, baby cereals and infant formula.

Anglo-Dutch consumer products group Unilever ended its 20-million pound annual contract with Sinar Mas in December, while Kraft cut its ties in February.

Unilever, maker of Hellmann’s mayonnaise and Dove soaps, also said it found Sinar Mas subsidiary PT Smart was failing to meet environmental sustainability standards.

“If PT SMART are able to come forward with concrete proof that they are not involved in unacceptable environmental practices then we would certainly re-consider our position,” Unilever Chief Procurement Officer Marc Engel said in a statement at the time.

Greenpeace claims Sinar Mas is breaking Indonesian law and ignoring its commitments as a member of the Round Table of Sustainable Palm Oil by expanding into the rainforests that are home to the apes.

PT Smart wrote to clients in February this year saying it was taking action to improve its environmental practices. The company pledged its commitment to not destroying high value conservation areas and not converting peat-rich soils to cut carbon emissions.

Nestle also confirmed Wednesday that it does not source paper from Sinar Mas unit Asian Pulp and Paper.

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Nestlé cultivates 140,000 disease-resistant cocoa trees

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Nestlé cultivates 140,000 disease-resistant cocoa trees

Manila Bulletin, February 13, 2010, 2:11pm

ABIDJAN (Reuters) – Nestlé has cultivated 140,000 disease-resistant cocoa trees to distribute to farmers in Ivory Coast and should boost that number to 1 million per year by 2012, a company executive said.

Nestlé last year launched a plan to hand out the high-yield saplings to farmers with a view to possibly doubling their productivity and improving the often poor quality of Ivory Coast's cocoa.

''This year, we are aiming to produce 500,000, and from next year onwards, 1 million every year,'' Klaus Zimmermann, Nestlé's global head of research and development, said.

He spoke to Reuters during a visit of World Bank President Robert Zoellick to a Nestlé installation in Ivory Coast.

Zoellick used the occasion to highlight badly needed reforms to the sector, which he said had to be more transparent and tax farmers less.

Ivory Coast, the world's top cocoa grower, which supplies 40 percent of world demand, has suffered in recent years from lower yields because of aging trees and black pod disease.

Cocoa sector reforms have been held back by a political crisis that has persisted ever since a 2002-3 war split the country in two, leaving the north in the hands of rebels.

Echoing similar efforts in Indonesia and Ecuador, Nestlé, the world's biggest food group, is carrying out research on cuttings from Ivorian plantations to help propagate the stronger varieties.

Zimmermann said Nestlé's high-yield plants would be a hit with farmers.

''When the farmer realises he can get three-fold his income on the same land, he will be convinced,'' he said.

Benefits of the plants include higher quality cocoa, in a country better know for its bulk than its top grades, resistance to disease and drought, and 50 percent to 200 percent more productivity.

Zimmermann cautioned, however, against thinking this would quickly solve Ivory Coast's aggregate supply problems.

''In Ivory coast there are 3 billion trees. If we plant over the next 10 years 12 million, the impact on the quantity of the product will not be that big,'' he said.

Ivorian cocoa plantations yield, on average, between 400 and 500 kilograms of cocoa per hectare, compared with averages closer to 2 tonnes per hectare in countries like Indonesia.

Exporters on Monday estimated about 751,000 tonnes of beans had reached Ivory Coast's two ports by Jan. 24, up from 681,049 tonnes in the same period last year.

Fears that a vicious combination of aging trees, disease and dry weather will bode poorly for cocoa crop yields this season have kept cocoa futures trading at 30-year highs in London and New York in the past few weeks.

DJ Nestle, Arcelor Mittal, Posco To Invest In Indonesia -Minister

Trading Markets, Wed, 03 Feb 2010 22:15:35 EST

JAKARTA, Feb 03, 2010

Several major companies plan to invest in Indonesia as early as this year in a boost to the government's plans to attract more foreign business, the industry minister said.

Consumer-products giant Nestle SA (NSRGY) plans to invest $100 million to build a new factory in Indonesia this year, while Arcelor Mittal (MT.AE) will also invest in a project here, Mohamad Hidayat said late Wednesday.

Korean steelmaker Posco and state-owned PT Krakatau Steel will also likely form a multibillion dollar joint venture this year, a proposal that has been under consideration since last year, Hidayat said.

Nestle and Arcelor Mittal already have facilities in Indonesia.

-By Jakarta bureau, Dow Jones Newswires; 62 21 3983 1277; djn.jakarta@dowjones.com

Nestle to invest $390 million in Mexico coffee plant

Reuters, Mexico City, Sat Jan 30, 2010 12:36pm EST

MEXICO CITY (Reuters) - Nestle, the world's biggest food group, said on Saturday it will invest 5 billion pesos ($390 million) in Mexico over the next three years to increase coffee processing capacity, part of a $1 billion expansion plan.

"The majority of these 5 billion pesos will be invested in the Nescafe instant coffee processing plant," Nestle said in a statement, adding that the investment would increase capacity by 40 percent at the factory in Toluca near Mexico City.

Mexico, a major world coffee producer, has struggled to improve the quality of its beans in recent years but is positioning itself as a processor of coffee to serve U.S. and European markets.

Nestle said it planned to invest $1 billion in Mexico between 2008 and 2012.

(Reporting by Adriana Barrera)

DAVOS-Zurich Financial eyes Indonesia, Malaysia growth

Reuters, Wed Jan 27, 2010 7:55am EST

DAVOS, Switzerland, Jan 27 (Reuters) - Swiss Insurer Zurich Financial Services Ltd (ZURN.VX) is exploring ways to take a controlling stake in its Malaysian joint venture and grow its business in Indonesia, its Asia Pacific head said on Wednesday.

Europe's fourth-largest insurer by market value gets most of its Asian-derived revenues from former British colony Hong Kong, but mainland China and other markets in southeast Asia should get a larger piece of the pie, Geoffrey Riddell said.

"The main areas we are focused on are Malaysia and Indonesia," he told Reuters on the sidelines of the World Economic Forum in the Swiss mountain resort of Davos.

Zurich Financial now holds a 40 percent stake in a joint venture offering general and life insurance in Malaysia, but was exploring ways to take control of that business, he said.

"We would like to have control but we want to get to control in a way that is comfortable to the parties involved. It could take time. It could involve so many different things," he said, adding that the Zurich Financial could take a stake of up to 70 percent according to domestic rules.

Neighbouring Indonesia offers the greatest growth potential for the insurer, which only has a small, wholly-owned general insurance business there, he said.

"We'd like to be a significant general insurance and life player and there are multiple ways of getting there on both sides. We are looking at all the options," he said.

"We may acquire, it may be distribution agreements, it may be buying distribution, it is really at the strategic review stage," said Riddell, who is based in Zurich.

Zurich Financial has said it will expand its life insurance unit headcount in Hong Kong by 1,400 in the coming years, bringing the total number of agents to 2,400 as it accelerates business development in the city.

Asia contributes about 7-8 percent of the company's total sales, with Hong Kong accounting for half of regional sales.

"The other markets will have to grow very fast to catch up because we are continuing to grow in Hong Kong," he said. (Reporting by Tamora Vidaillet; Editing by Lin Noueihed)

RI-Switzerland to form joint economic commission

Antara News, Thursday, November 26, 2009 17:29 WIB

Jakarta (ANTARA News) - Indonesia and Switzerland are to establish a joint commission to enhance their bilateral relations in the economic and trade sectors, an official said.

"The joint commission will be a forum for regular consultations between the two sides in order to support efforts to increase trade and economic cooperation," Director General for the United States and Europe at the Foreign Ministry, Retno LP Marsudi, said here on Thursday at the signing of a Memorandum of Understanding (MoU) on the commission`s formation.

Retno said the joint commission would function as a regular forum for representatives of the two countries to discuss efforts to enhance Indonesian exports to Switzerland as well as ways to increase Swiss investment in Indonesia.

She said the MoU signing on Thursday would be followed by a meeting between representatives of the two countries to discuss cooperation in the trade, investment, tourism, industry, agro-industry, environment, and energy sectors.

Meanwhile, Monika Ruhl Burzi, head of the Swiss Foreign Ministry`s Bilateral Relations Division, expressed satisfaction about the signing of the MoU to form the joint commission.

"The establishment of a joint commission for the trade and economic sectors will be a significant step in forging closer cooperation between the two countries in the future," Burzi said.

The Swiss government had since 2008 included Indonesia on the list of countries being prioritized in its foreign economic and trade policies. The other countries were emerging market countries such as Egypt, Ghana, Colombia, South Africa and Vietnam.

Total trading activity between Indonesia and Switzerland last 2008 reached US$ 938.8 million. The figure had increased from the previous year`s US$ 668.9 million.

Switzerland ranks 15th on the list foreign countries investing in Indonesia. The foreign countries accumulated investment in Indonesia in the period January 1990 - September 2009 reached US$740.742.270 billion with 120 projects scattered across the country.

RI to expand research for sustainable development

The Jakarta Post , Jakarta | Thu, 11/26/2009 1:30 PM

Indonesia aims to increase its scientific research capacity through the establishment an international research center that fosters cooperation between local and foreign universities.

The Indonesian Institute of Science (LIPI) launched Wednesday the International Center for Interdisciplinary and Advanced Research (ICIAR), as part of an initiative to promote preservation of the environment and to advance food security.

The center was established through cooperation between the institute and the the State Research and Technology Ministry, as well as the National Education Ministry.

The center is going to work with the United Nations Universities in Japan and New York, the Wageningen University in the Netherlands, the Kyoto University in Japan and the Swiss German University in Serpong, Banten.

Swiss German University is the first international university offering a double degree from both Indonesia and Europe for local students.

State Minister for Research and Technology Suharna Surapranata said in his speech that the center would propel scientific research in the country.

The center's chairman, Jan Sopaheluwakan, said he expected the center to become a melting pot of advanced studies from various scientific fields and to influence decision makers in the country through its research results.

Jan, who is also LIPI's deputy chairman for scientific studies, said the center would focus on developing research on biogeodynamics, sustainable environmental practices, climate change and disaster mitigation, coastal community resilience and conflict and crisis management, as well as food, health, biomedical and intercultural studies.

He said this would be made possible through networking with foreign partner universities.

"United Nations University, for example, has extensive networks in UN member countries," he said during the center's launching ceremony.

"This will help Indonesia catch up with other nations' achievements, which address environmental and human security problems."

Associate Director of the Institute for Environment and Human Security at the United Nations University, Fabrice Renaud, said the new center would extend the role of his institute in promoting solutions related to the environmental dimension of human security.

"We are putting the individual, social groups and their livelihoods at the center of debate, analysis and policy," he said.

"Our university has acted as a bridge between the UN and the academic world since 1973."

Senior Researcher at Wageningen University, A. Schrevel, said his university would work together with the center on low-land management projects in Sumatra and Kalimantan for two to three years.

"Significant peatland losses on the islands have increasingly contributed to the release of emissions," he said.

Jan said this center would change the old paradigm of local uni-versities.

"Most local universities have not yet prioritized research programs. Lecturers help their students research certain topics only to help them fulfill their academic requirements," he said.

He called such universities as "teaching universities", which had yet to improve their research functions due to limited facilities. (nia)

BSD to build more universities in the complex

The Jakarta Post, Wed, 03/04/2009 4:06 PM  |  City 

TANGERANG: PT Bumi Serpong Damai (BSD), developer of the popular satellite city complex in Tangerang, Banten, says it has secured a commitment with Atmajaya Catholic University to build a new campus near the BSD complex. 

BSD director Ignesjz Kemalawarta said the move was in line with the company's plan to develop the complex as a center of learning. 

"The constructions of the Swiss-German University *SGU* and the Prasetya Mulya University campuses are the real evidence of our commitment to transform BSD into a city of education centers," Ignesjz said in a press release sent to The Jakarta Post recently. 

BSD is home to the Deutsche International Schule, SGU, Bina Sarana Informatika, the Indonesian Institute of Technology and the Banten Nursing Academy.

Switzerland considers RI a priority country in Asia: Envoy

Veeramalla Anjaiah, The Jakarta Post, Jakarta | Thu, 02/19/2009 2:13 PM  

As the center of gravity of international politics and economics moves toward Asia, Switzerland, a tiny but prosperous European nation, has picked Indonesia as one of the priority countries in Asia to develop a new partnership with. 

"We have selected seven priority countries from all over the world in the context of our development cooperation for the period of 2008-2012. Indonesia is one of them," Swiss Ambassador to Indonesia Bernardino Regazzoni told The Jakarta Post during a recent interview at his office in Jakarta. 

The six other countries are Egypt, Ghana, Colombia, Peru, South Africa and Vietnam. 

All seven countries, Ambassador Regazzoni said, were presently enjoying rapid economic growth and striving toward greater integration into the global economy, and they boasted predominant positions in their respective regions. 

For instance, Indonesia, the largest economy in Southeast Asia, has recorded 6.1 percent economic growth in 2008 amid the global slowdown. 

But the seven countries still face huge problems in terms of poverty alleviation and development. 

"The priorities of our development cooperation with these seven countries lie in strengthening competitiveness and trade diversification of these countries, in mobilizing domestic and foreign investment, in improving basic infrastructure and promoting stable basic economic conditions," Regazzoni, the media-friendly ambassador, said. 

The Swiss Federal Council has already provided 800 million Swiss francs to the State Secretariat for Economic Affairs (SECO) to implement this program. 

There has been a flurry of activity in Switzerland's policies toward Indonesia, especially after Regazzoni took over as Swiss ambassador on July 25, 2006. 

"The most important thing in our bilateral relations is growing new Swiss foreign investments in Indonesia. It's amazing," Regazzoni said. 

"Our investments in Indonesia are much higher than our investments in India, South Korea, Malaysia and Vietnam." 

In 2006, Swiss companies in-vested US$500 million in the country, with another $250 million in 2007. In the first six months of 2008, the realized Swiss investments reached $21 million. 

In 2008, total foreign direct investment in Indonesia reached $14.87 billion, with Mauritius topping the list with an investment of $6.47 billion. 

Most Swiss investments are new, with more than 75 Swiss companies already operating in Indonesia in different sectors, including banking, chemicals, food, pharmaceuticals and insurance. 

"More and more companies are showing an interest in Indonesia. Our cumulative investments in Indonesia have already reached $3 billion. It will grow further in future," Regazzoni said. 

Bilateral trade between the two countries has also improved significantly. 

"Our bilateral trade has been witnessing double-digit growth. Last year, to our surprise, there was a significant increase in our imports of textiles, garments and footwear from Indonesia," Regazzoni said. 

Data from the Indonesian Central Statistics Agency (BPS) show bilateral trade valued at $668.90 million in 2007, a huge jump from the $339.38 million recorded in 2003. 

It seems the year 2008 will remain a milestone in the history of the trade between the two countries. In the first 10 months of 2008, trade surged to $907.03 million, a 64.40 percent increase from $551.74 million during the same period in 2007. 

Switzerland imports mainly textiles, garments, furniture, footwear, agricultural products like tea, coffee and cocoa from Indonesia, while it exports machinery, food, drugs, medical equipment and chemicals to Indonesia. 

Unlike Indonesia, Switzerland lacks abundant natural resources, thus making it rely of high-quality human resources to produce top-notch machinery, drugs, foods, precision tools and strong brands. 

"We also cooperate with Indonesia's National Agency for Export Development in the areas of fishing and seafood, agricultural products, handicrafts, educational toys, furniture and so on," Regazzoni said. 

The ambassador added there was another aspect that would strengthen bilateral relations even further. 

"Switzerland became a member of the Schengen area on Dec.12, 2008. Now we can issue Schengen visas valid for up to a three-month stay," he said 

"The visa will also will be valid for entry into the territory of all other Schengen member states. Indonesian passport holders with a valid Schengen visa can enter Switzerland without an additional Swiss visa." 

Both countries, Regazzoni said, were also mulling establishing a Joint Economic Commission to further strengthen the partnership.

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Swiss German school to have own campus

The Jakarta Post. Wed, 11/12/2008 10:42 AM  

TANGERANG: After eight years of operating in Tangerang, the Swiss German University (SGU) plans to build its own campus on a 10-hectare plot of land in Bumi Serpong Damai (BSD) satellite city in Tangerang, Banten. 

The first stone for the new campus complex was put in place Tuesday. The event was witnessed by German Ambassador to Indonesia Paul Freiher von Maltzan, who is also the honorable chairman of the SGU Foundation, Austrian ambassador Klaus Woelfer and Swiss ambassador Bernardino Regazzoni. 

Fasli Jalal, the director of higher education at the Education Ministry, SGU rector Peter Psceihd, the SGU board of patronage and management, and the PT BSD board of directors were also present. 

The planned campus complex will be equipped with lecture rooms, a parking area, pedestrian facilities, a caf*, rectorate building, auditorium, sports hall, soccer field and other facilities. 

Since it was established in 2000, SGU has been renting a space in the German Centre building in BSD. 

The university is a government and privately sponsored university. It is managed by the SGU Foundation, which is a joint German, Austrian, Swiss and Indonesian venture.  

SGU offers 13 courses, with about 900 students.

Julius Baer opens branch in Indonesia

Aditya Suharmoko, The Jakarta Post, Jakarta | Wed, 11/05/2008 10:31 AM  

Swiss-based top financial firm Julius Baer has opened a branch in Indonesia, PT Julius Baer Advisors Indonesia, despite the global financial crisis, as part of its strategy to expand in southeast Asia. 

Julius Baer's CEO for Asia, the Middle East and Eastern Europe, Thomas R. Meier, said Tuesday the Indonesian branch would enable the firm to identify new investment opportunities and give advice to clients from the region. 

"The establishment of a presence in Jakarta is an important element of our growth strategy, which continues to be supported by Julius Baer's sound capitalization and balance sheet," Meier said. 

"The opening demonstrates our commitment to the region and we expect to further leverage Julius Baer's existing global strengths to benefit all our clients," he added. 

Julius Baer opened its branch in Singapore, two years ago. It was named the fastest-growing financial institution in the country last year. 

The global financial crisis does not seem to be stopping large financial institutions from opening branches in Indonesia, Southeast Asia's largest economy. 

Last week, U.S. financial giant Morgan Stanley opened a branch here. 

Salina Nordin, president director of Julius Baer Advisors Indonesia, said the firm would benefit Indonesia, after securing a license from the Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK). 

Julius Baer, a "pure-play" private bank without an investment banking arm, has managed to avoid the massive U.S. subprime mortgage crisis which has been hitting its rivals. 

Julius Baer was founded in 1980 by famous banker Julius Baer. The firm's services include asset management, wealth management, investment consultation and investment funds for both private and institutional investors and securities, as well as foreign exchange trading. 

With more than 4,200 employees worldwide, it was managing more than 360 billion Swiss francs (US$310.39 billion) by the end of June.

NGO needs wood for house construction

MEDAN, North Sumatra (Jakarta Post) : Caritas Swiss foreign non-governmental organization needs 4,000 square meters of wood to build permanent houses for quake victims in Singkil, Nanggroe Aceh Darussalam.

Caritas Swiss' Medan office head Gian Reto Capaul said the wood was badly needed to help speed up the construction of the houses.

Of the 590 houses to be built, only 100 has thus far been completed, he said, adding that they would be given to quake victims in Singkil on Wednesday.

"Most wood used to build the houses in Singkil is imported from New Zealand and some is shipped from Kalimantan," Reto said Saturday.

Reto reiterated that his organization never used wood taken from illegal logging practices.

Indonesia`s Bumi almost certain to take over Herald Resources

Jakarta (ANTARA News/Asia Pulse) - Indonesia's largest coal producer PT Bumi Resources is almost certain to take full control of Herald Resources Ltd (ASX:HER), a report said today.

The management of the Australian mining company has agreed to sell all of its shares to Bumi Resources at a price of A$455 million (US$395.21 million), the newspaper Investor Daily said.

Credit Suisse will loan Bumi US$375 million to finance the acquisition Srivastava said Bumi will hold a shareholders' meeting later this month to get approval for the acquisition. Bumi corporate secretary Dileep Srivastava said a final deal is expected to be signed on February 15.