Taiwan firm to make paper from rice, wheat stalks

The Jakarta Post, The Associated Press, Taiwan | Sat, 01/15/2011

A leading Taiwanese paper company expect to begin mass producing paper pulp made of rice and wheat stalks this year, a newspaper reported Saturday.

Yuen Foong Yu Group collaborated with Taiwanese universities in developing the bio-technology, Chairman Ho Shou-chuan told the Economic Daily News.

It's a cheaper and greener process because more paper pulp can be produced from rice stalks - farming byproducts that are usually dumped - than from the same amount of lumber by weight.

Ho said he hoped the new technology could replace existing chemical processes that are highly polluting and require cutting down massive numbers of trees.

The new pulp-making technology will use energy more efficiently and produce much less carbon dioxide during manufacturing, he added.

Yuen Foong Yu has been making industrial paper in Yangzhou City in eastern China. Last year, it invested $8 million to set up a new factory there to make the bio paper pulp, the newspaper said.

Production is expected to begin during the second half of this year, he added.

The group's spokesperson could not be reached for comment on Saturday.

The Yuen Foong Yu Group also owns Taiwan's E Ink Holdings Inc., which supplies global e-reader makers such as Amazon Inc. with electronic paper.

Taiwan donates $50,000 for Merapi victims

Antara News, Wednesday, December 1, 2010

Jakarta (ANTARA News) - Taiwan has donated US$50,000 in fund to the Indonesian Red Cross (PMI) to rehabilitate areas affected by the Mount Merapi eruptions.

Andrew Hsia of the Taipei Economic and Trade Office (Teto) in Jakarta handed the aid to PMI chairman Yusuf Kalla recently, Teto said in a press statement on Tuesday.

Hsia expressed hope the aid would be helpful for the PMI to continue rehabilitating disaster-hit areas to allow the affected people to resume a normal life.Kalla said he was thankful for the aid and pledged to use it properly.

"We all know Java is the most populous island. Whenever a disaster occurs it claims many lives. The reconstruction of the affected areas will need a long time and cost a sizable amount of funds," he said.

Mt Merapi, the world`s most active volcano, had erupted repeatedly in the past two or three weeks but its most fatal eruptions occurred on Oct 26 and Nov 5.

At least 259 people had perished and many others sustained burns and became displaced in the eruptions.

The total number of refugees being sheltered in 639 refugee centers in Yogyakarta and Central Java reportedly reached 367,548.

The volcano`s eruptions spewed hot clouds of ash and lava into the air and sent lava down its many slopes.

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Taiwan donates $300,000 for disaster victims

Antara News, Monday, November 15, 2010 22:40 WIB

Jakarta (ANTARA News) - Taiwan has donated US$300 thousand in funds to finance reconstruction efforts in disaster-hit regions in Indonesia.

The funds, along with 1,000 blankets, 7,000 clothes, 25,255 pairs of shoes, and 10,000 pairs of footwear will be distributed among victims of natural disasters in stages, the Taipei Economic and Trade Office (TETO) said in a press release on Monday.

The donation will be channeled through the Indonesian natural disaster mitigation board, the office said.

TETO, along with Taiwanese companies operating in Indonesia is planning the next phase of relief aid for the victims of natural disasters, it said.

The Indonesian government said early this month it would draw up blueprints for the reconstruction of the disaster-hit regions of Wasior, Mount Merapi and Mentawai islands.

"We anticipate that funding for the reconstruction of the areas hit by natural disasters will come from various sources, both internal and from foreign assistance," Coordinating Minister for People`s Welfare Agung Laksono said.

Wasior in West Papua province was devastated by a flash flood that killed more than 160 people on Oct 4.

On Oct 25, a tsunami triggered by a magnitude-7.7 undersea earthquake engulfed the Mentawai islands off the coast of West Sumatra, killing at least 430 people and leaving some 15,000 people displaced.

Mount Merapi, located on the borders between Central Java and Yogyakarta provinces, erupted at least five times since Oct 26, spewing hot clouds 1.5 km into the air and sending lava down its many slopes. The lives of at least 168 people were lost, and the homes of about 70,000 others were destroyed.

Taiwan delegation wins US$36m in Indonesian orders

Taipei Times, Staff writer, with CNA, Mon, Oct 4, 2010 

A trade and investment delegation led by Minister of Economic Affairs Shih Yen-shiang (施顏祥) won US$36 million in orders in Indonesia during a three-day visit, the Ministry of Economic Affairs said on Saturday.

The delegation, which returned to Taipei earlier in the day, held several business seminars during the visit, attracting about 1,200 potential buyers, the ministry said.

The delegation was comprised of more than 150 representatives from about 100 major Taiwanese companies, including Teco Group (東元集團), Winbond Electronics Corp (旺宏電子), CPC Corp, Taiwan (台灣中油), Tainan Enterprises Co (台南企業) and Taiwan Sugar Corp (台糖).

Biggest group

The ministry said the delegation was the largest trade and investment group from Taiwan to visit the Southeast Asian country, showing that Taiwan’s business sector values the Indonesian market.

Shih met with Gita Wirjawan, head of Indonesia’s Coordinating Investment Board, while the other delegates visited industrial zones looking for business opportunities.

Packed with natural resources and a huge population, Indonesia has become one of the most important markets in Southeast Asia, the ministry said.

Room for growth

The ministry said there was room for Taiwan and Indonesia to work together economically, especially now that Taiwan and China have signed the Economic Cooperation Framework Agreement (ECFA).

Indonesia and Taiwan can complement each other in industrial development because Taiwan is strong in information technology, machinery and auto components, while Indonesia has an edge in oil, natural gas, timber, rubber and textiles, it said.

Taiwan’s accumulated investments in Indonesia total US$13.95 billion, according to the ministry’s data.

Orchid centers opened in Bogor

Theresia Sufa, The Jakarta Post, Bogor | Fri, 08/06/2010 11:29 AM

Two orchid nurseries were opened in Bogor regency Thursday, aimed at helping farmers gain access to quality seeds at an affordable price.

The head of the Indonesian Orchid Association (PAI), Mufidah Jusuf Kalla, who is also the wife of former vice president Jusuf Kalla, said at the inauguration ceremony that the centers were aimed at cultivating quality Dendrobium and Phalaenopsis families of orchids because the two varieties were still imported.

"Dendrobium and Phalaenopsis are the two most wanted species of orchid because of their showy flowers and affordable prices. Therefore we will breed the seeds here so we can distributed them to orchid farmers throughout Indonesia at cheaper prices," Mufidah said.

The centers, which were established by Mufidah and Riantini Sofjan Wanandi as shareholders, serve two different purposes.

The 12-hectare center in Gunung Geulis is for seedlings and the 16-hectare plot in Citeko is for blooming.

The ceremony was attended by former vice president Jusuf Kalla, the Indonesian Employers Association chairman Sofjan Wanandi, Agriculture Ministry Horticulture Director General Ahmad Dimyati and a group of Taiwan orchid stakeholders led by Tainan County magistrate Su Huan Chih.

Mufidah said orchid farmers in Indonesia faced obstacles including seeds that were mostly imported from Taiwan and complex regulations and bureaucracy.

Some orchid farmers have highlighted the difficulties they faced in getting permission to establish of orchid gardens as well as the flexible fees needed to get the permission, leading to high production costs.

Riantini said Indonesian farmers would reap benefits if orchid seeds could be bred domestically with technical assistance from the Taiwan Orchid Association.

"We really expect cooperation with the Taiwan Orchid Association to go smoothly so we can develop a good orchid conservation program," she said.

Garuda, China Airlines develop cooperation

Antara News, Monday, May 24, 2010 11:14 WIB

Jakarta (ANTARA News) - Garuda Indonesia and China Airlines announced they had been developing operational cooperation in the form of passenger and cargo revenue sharing and exchange of pilot training.

Pujobroto, corporate communications official of the national flag-carrier PT Garuda Indonesia confirmed in Jakarta Sunday that the MoU had been signed by Garuda Indonesia President & CEO Emirsyah Satar and China Airlines President Huang-Hsiang Sun in Taipei, China, on Friday (May 21).

Pujobroto said the cooperation covered passenger/cargo revenue sharing, and frequent flying program.

"China Airlines will be Garuda Indonesia`s first partner in mileage value-added exchange. The cooperation also covers simulator pilot training," he said.

President Director of Garuda Indonesia Emirsyah Satar, Pujobroto said, welcomed the cooperation as it will further develop Garuda Indonesia`s flight operations.

"The cooperation also provides both Garuda Indonesia and China Airlines more options and facilities. It is also a renewal and development of previous cooperation", Emirsyah added.

In the meantime, President Director of China Airlines Huang-Hsiang Sun said the MoU with Garuda would increase air traffic between the two countries and open an opportunity for the development of cooperation between the two airline companies in the years to come.

Previously, Garuda Indonesia and China Airlines established cooperation in operations and codesharing on the Jakarta-Taipei and Denpasar-Taipei routes.

Under the cooperation, China Airlines acted as operating party while Garuda Indonesia as marketing party.

Garuda Indonesia was entitled to sell 45 seats per day on the Denpasar-Taipei return flight, and 30 seats on the Jakarta-Taipei return flight.

In addition, under the joint freighter cooperation between Garuda Indonesia and China Airlines, the United States has become available as destination, and Australia in a not too distant future.

Taiwan Targets Students With ‘Cheap’ Offer

Jakarta Globe, Heru Andriyanto, May 10, 2010

Taiwan is aiming for a bigger slice of the Indonesian student market with an offer hard to resist: the cheapest learning costs among competitors such as the United States, Australia, Singapore and even mainland China.

“What it takes for an international student to earn a master’s degree in Taiwan is spending of just $6,000 to $9,000 a year, according to the discipline the student is choosing. And that includes the living expenses,” said Chen Tsang Yao, director of Elite Study in Taiwan (ESIT), whose task is to net foreign students for more than 160 higher education institutions in Taiwan.

But he was quick to add that cost saving was not the main advantage his government could offer students.

Chen claimed Taiwan’s higher education and training were among the world’s top five in 2006 and 2007, based on a survey by the World Economic Forum, thanks to its highly advanced research facilities.

“We are offering an option to Indonesian students willing to study abroad who mostly consider the US, Australia, Singapore, Japan or the Netherlands,” he said.

The recruitment team visited Jakarta last week “to test the water” in its first official student recruiting program in Indonesia.

It is planning a much bigger introductory and marketing event involving local universities in October.

Indonesia is seen as a key partner in Taiwan’s ambition to internationalize its universities. Even before the formal marketing campaign is launched, there are already quite a number of Indonesians studying for degrees in Taiwan.

“In 2009, the total number of Indonesian students studying in Taiwan was 2,275,” Chen said.

That figure represents about 10 percent of the number of international students from 113 countries studying in Taiwan.

But while the major disciplines selected by international students are engineering and business management, 877 Indonesian students went to Taiwan to study Mandarin.

“Now we need to explain here that Mandarin language is not the only thing we are best at,” said Chung Tsair Wang, co-chairman of ESIT. “Taiwan universities have world-class research facilities in engineering and technology and we look forward to seeing more Indonesian students in those disciplines.

“I have visited several Indonesian universities and met students with great talent in those areas. In Taiwan, international students with excellent performance enjoy many advantages, including generous scholarships from the government and even free accommodation.”

Another thing to consider, he said, is that the fast-growing Taiwanese investment in Indonesia offers great job opportunities for graduates from Taiwan.

“It is only natural that Taiwanese companies operating in Indonesia will prefer to select Indonesians graduating from our universities as their employees, with high salaries and other benefits,” Chung said. “And there are many joint Taiwan-Indonesia projects here in the fields of energy, petrochemicals, engineering and so on,” he told the Jakarta Globe.

Among the top Taiwanese universities Indonesian students can select from are Asia University, Chung Hua University, Chung Yuan Christian University, National Central University, National Cheng Kung University, National Sun Yat-sen University, National Taipei University, National Taiwan University, National Taiwan University of Science and Technology and St. John’s University , Taipei campus.

In October, representatives from various Taiwanese universities are expected to join the ESIT team for its first major marketing program in Indonesia.

“We are still approaching local universities to be hosts of the program,” Chung said.

“We are currently at talks with the University of Indonesia, Gadjah Mada University, North Sumatra University and Brawijaya University.”

To show its seriousness in attracting more Indonesian students, the ESIT has opened an online application service at www.esit.org.tw, from which students can go one-stop shopping for their preferred university and discipline. The site includes institutions with an English-instruction international program, application forms, class schedules and even information on finding a place to live.

But it seems that the Indonesian marketing program will not be an easy task for the Taiwanese delegation.

“The cheap price tag of course started with the more famous ‘made in Taiwan’ products, but I don’t think that the concept will work when it comes to education,” said Theresia Sulis, 43, a housewife in Cimahi who is seeking a school for her son, a recent high school graduate.

“Maybe the school expenses there are cheaper than other countries, but what’s the point in sending my son there if local universities in Bandung or Jakarta have better quality?”

“And it’s still much cheaper for him to study in local schools,” she added.

“If I finally decide to send my son abroad to study, I will consider France, Australia or Singapore, which are also less expensive than the US or Britain, but equally offer big advantages in the post-school job search.”

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Taiwanese Groups Commit to Big Indonesian Projects

Jakarta Globe, Arti Ekawati, April 15, 2010

President Susilo Bambang Yudhoyono, UN official Noeleen Heyzer, center, and Coordinating Minister for the Economy Hatta Rajasa at an infrastructure conference in Jakarta on Thursday. (Antara Photo/Pandu Dewantara)

Two Taiwanese companies plan to invest billions of dollars in Indonesia’s petrochemical and biofuel industries, Coordinating Minister for the Economy Hatta Rajasa said on Thursday.

He said that Taiwan-based oil and gas firm CPC Corporation planned to build a $2.8 billion petrochemical center in Kalimantan, adding that the company had yet to decide exactly where to establish the project.

“They’re looking for the perfect location for the petrochemical center,” Hatta told reporters on the sidelines of the Asia-Pacific Ministerial Conference on Public Private Partnerships for Infrastructure Development 2010.

He said CPC chose Kalimantan because of the availability of raw materials for the petrochemical project and the rapid development in the region.

He added that CPC planned to team up with a local partner, whether a private company or state-owned enterprise such as oil and gas company PT Pertamina, to develop the project. Teaming up with Pertamina would help ensure the supply of the necessary raw materials.

Hatta said that another Taiwanese company is seeking to develop a jatropha plantation to produce biofuel. He said the company has already obtained the necessary license from the local administration to develop a 100,000 hectare jatropha plantation in East Kalimantan. He did not disclose the name of the company nor the size of the planned investment.

Hatta said the Taiwanese investor asked the government to make the plantation area a special economic zone (SEZ), which among other benefits would allow the investor to be exempted from paying duties and taxes when importing equipment and raw materials.

He added that several investors from Japan, South Korea and China had also asked for similar treatment before investing in various business sectors in Indonesia.

“Many investors have expressed an interest in developing businesses here under the SEZ system,” he said.

He said the requests were in line with the government’s plan to develop several SEZs. For instance, the SEZ in East Kalimantan would be focussed on energy-related industries such as biofuels and petrochemicals.

Meanwhile, the SEZ in Sumatra will focus on oleo-chemicals as the region has vast palm oil plantations.

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Taiwan to Relocate Shoe Factories to Indonesia

Tempo Interactive, Wednesday, 07 April, 2010 | 19:06 WIB

TEMPO Interactive, Jakarta: The Chairman of the Board of Supervisors of the Indonesian Shoe Association, Harjanto, has said that there are three Taiwanese companies that plan to relocate their shoe factories from China to Indonesia.

“There is already an investment overheat (in China),” said Harjanto at the Investment Coordinating Board Office yesterday.

The three investors consider that Indonesia’s condition is stable enough.

“There might be a lot of scandals, but businesses keep on operating,” they said.

The three companies that will relocate their factories are: Panaruk Dwikarya, which produces Mizuno and New Balance; PT Cing Lu, which produces Nike and Adidas; and PT Shang Yau Fung with Asic Tiger.

The total investment to relocate the factories amounts to US$200 million up until the end of 2011.

They target that they will produce 20 million pairs of shoes in this time.

Besides factories relocation, Taiwan will expand with several sport shoes brands.

Up until next year, the total investment for sport shoes amounts to US$ 500 million.

Meanwhile the Indonesian Shoe Association is targeting exports of US$ 2 billion this year.

Last year’s export value amounted to US$ 1.8 billion.

“We want to go back to the times before the 1998 financial crisis when exports amounted to US$ 2.4 billion," said an optimistic Harjanto.

ARYANI KRISTANTI

Taiwan appoints senior official as new TETO chief

The Jakarta Post, Jakarta | Tue, 01/12/2010 11:02 PM

Taiwan has appointed Andrew Li-Yan Hsia as its trade representative to Indonesia, the Taipei Economic and Trade Office (TETO) said in Jakarta.

Hsia assumed his post in December 2009. Prior to coming to Jakarta, he was working as deputy foreign minister of Taiwan.

“Indonesia is an important country. That’s why Taiwan has appointed such a high-ranking official as its trade representative in Indonesia,” TETO’s executive officer of the press information division, Peter Wey, told The Jakarta Post on Tuesday.

In 2008, trade between Indonesia and Taiwan reached US$10,85 billion, a 25 percent increase from $8.68 billion in 2007.

The previous TETO representative to Indonesia Timothy Chin-tien Yang, is now Taiwan’s foreign minister. Another former TETO representative, David Y. Lin, is now working as deputy foreign minister.

According to Wey, Hsia joined the Foreign Ministry as a specialist in 1982 and had worked in Washington, Ottawa, New York and New Delhi in different positions.

Antara signs news exchange cooperation with Taiwan

Antara News, Wednesday, December 16, 2009 04:50 WIB

72nd ANTARA Anniversary- Vice President Boediono (middle) flanked by State Minister of BUMN, Mustafa Abubakar (right) and President Director of Perum LKBN ANTARA, Ahmad Mukhlis Yusuf (left) entered Adhiyana room at Wisma Antara in Central Jakarta, on Monday (14/12) before presenting his speech at the 72nd ANTARA Anniversary. (ANTARA/R.Sukendi/Kunto)

Jakarta (ANTARA News) - LKBN Antara, the national news agency of Indonesia, signed two cooperation agreements in news exchange with Radio Taiwan International (RTI) and the Central News Agency in a bid to intensify the dissemination of information in Indonesia and Taiwan.

"We have to expand the wings of cooperation with many media either representating radio stations or news agencies of other countries in order to give color to the news being handled, so that the promotion of Indonesia to foreign readers will run as expected," Dr Ahmad Muchlis Yusuf, president director of LKBN Antara, said after the signing ceremony here on Tuesday.

Antara as a news agency had the right to expand its cooperation with other media in other countries, and as long as the cooperation benefits the promote of Indonesia, let it run unhampered, he said.

"Our company will also be friendly to whoever wishes to cooperate with us," he stressed.

In the meantime, Sunshine Kuang PhD of Radio Taiwan International said warmly welcomed the cooperation in news exchange with Antara, as her radio station had a broadcasting program in the Indonesian language.

"The number of Indonesian listeners in Taiwan is quite big and therefore we have to provide an Indonesian broadcasting service," she said.

Hung Chien-chao, Ph.D, of the Central News Agency, said that the cooperation in news exchange has long been awaited, but the dream came true today. Indonesia with a vast land and sea territory, has a better implementation of democracy which should be informed to its people.

"Opening the door to information from Indonesia to Taiwan is better than closing it to outsiders. At least, such misunderstanding could be avoided," he said.

In a global era, many media need to be proactive, to enable them to easier handling hardship and competition.

BP, Eni Plan To Convert Coal Gas To LNG In Indonesia

The Wall Street Journal, James Herron of DOW JONES NEWSWIRES

LONDON (Dow Jones)--BP PLC (BP) and Eni SpA (E) have launched a consortium to convert natural gas found in Indonesian coal beds to liquefied natural gas for export, BP said in a statement Monday.

This venture will produce the first coal bed methane in Indonesia and could potentially be the first ever facility to convert that gas to LNG, although no startup date has been set, a BP spokesman said.

Demand for LNG is strong in Asia and is expected to grow again once the region emerges fully from the economic downturn. A number of projects are underway in Queensland, Australia, to convert coal bed methane, or CBM, into LNG for export to Asia and are expected to start in the middle of the next decade.

The consortium has signed a production-sharing contract with the Indonesian government covering 1,700 square kilometers of territory on the Sanga-Sanga block in East Kalimantan, where BP and Eni are already producing conventional natural gas, the statement said.

The consortium has committed to spending $38 million to determine the production capacity of the block, the statement said.

"This important new access to Sanga-Sanga's CBM resources will allow BP to continue to grow our LNG production in Indonesia and underlines Indonesia's continuing significance to BP," said the company's exploration and production chief, Andy Inglis.

"This is a brown field development...the infrastructure needed is all in place, as is the export infrastructure," at the Bontang LNG plant, said the BP spokesman.

BP Indonesia President William Lin said: "We expect production to begin rapidly--in a very few years--and its supply to Bontang will enable Indonesia to become the world's first CBM-to-LNG producer."

Taiwan's Opicoil Energy and Universe Gas and Oil also have a share in the project.

Companies' Web sites: www.bp.com www.eni.com

-By James Herron, Dow Jones Newswires; +44 (0)20 7842 9317; james.herron@dowjones.com

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.

IBM Jumps on the High-Speed Rail to China

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

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

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

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

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

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)

Garuda Indonesia flies the skies alongside China Airlines

Indah Setiawati, The Jakarta Post, Bali | Fri, 02/13/2009 3:59 PM 
 

 (JP/Zul Trioanggono)

National flag carrier Garuda Indonesia joined hands with China Airlines Thursday to help expand the airlines' customer base. 

Garuda CEO Emirsyah Satar (second left) and China Airlines president Sun Huang-Hsiang exchanged MOUs on the agreed cooperation, signed in Bali on Thursday. 

The agreement is in the form of a number of code share agreements, including deals that China Airlines can sell a fixed number of seats for Garuda and a Special Prorata Aggrement (SPA), where Garuda can have a special rate for getting passengers to fly with China Airlines. 

Garuda will be entitled to have 90 seats in the China Airlines A330 and B744 flights on the Denpasar-Taipei route and 60 seats for the Jakarta-Taipei route, a double increase on the existing code share agreement. 

The state airline will also get an SPA for routes beyond Taipei such as Japan and America, where China Airlines flies. In exchange, China Airlines will also get an SPA for routes between Jakarta and other regions in the country. 

"This cooperation is a milestone for Garuda," Emirsyah said. 

The companies will also sit together to discuss code share cooperation on routes including Taipei-Singapore-Surabaya, Taipei-Hong Kong-Surabaya and Denpasar-Hong Kong-Taipei. 

Agus Priyanto, Garuda executive vice president for sales and marketing, said Garuda booked US$20 million total revenue last year from cooperation agreements with other airlines. 

"We hope to book $10 million in revenue this year with the new cooperation with China Airlines." 

Sun said the cooperation would benefit both companies, and that it was one of his company's steps to cope with the global economic downturn and its impact on airlines.

Tourism up while spending down this year, says minister

Andra Wisnu, THE JAKARTA POST, GIANYAR | Mon, 02/02/2009 9:53 AM  

Tourism and Culture Minister Jero Wacik expressed optimism that the country’s tourism industry will remain strong this year, though tourists would spend less due to the global financial crisis. 

During a visit to the XII summit of the Bali chapter of the Indonesian Hotel and Restaurant Association (PHRI) in the Royal Pitamaha hotel in Ubud, Gianyar, on Saturday, Jero said tourism will remain strong despite concerns that the global financial crisis would deter people from holidaying. 

“The global financial crisis will not prevent people from holidaying. It will just deter them from traveling far. So expect Germans to just travel to Spain instead of Indonesia,”he said. 

“But at the same time, tourists in Asian countries would be doing the same thing, and we can expect more travelers from Japan or Taiwan.” 

The concerns stemmed from the fact that Indonesia missed its original target of 7 million foreign tourists by the end of 2008, recording 6.4 million arrivals instead. 

The 6.4 million is in line with the ministry’s revised target however, with Jero quickly adding that the number was still higher than 2007, which saw slightly more than 5.5 million arrivals.

The revision to the target was made in October. 

He added that the tourism industry last year generated an income of US$7.5 billion, significantly higher than the expected $ 6 billion in the ministry’s revised target.

Jero predicted that Indonesia would see 6.5 million tourists by the end of 2009. 

“It’s a moderate target, but still higher than our record in 2007,” he said. 

He said the global financial crisis would hit tourists “pockets” though, further predicting that average tourist spending per visit would decrease from $1,170 in 2008 to $1,000 this year. 

He reminded participants that this was still an increase on the record figure in 2007 when tourists spent an average of Rp $970 per visit. 

He told tourist sector businessmen not to worry about the decreased spending, saying that domestic travelers has been spending more and more within the past years. 

Meanwhile, according to data from the Central Statistics Agency, domestic travelers’ expenditure rose to an average of Rp 406,350 (US$34.37) per trip in 2007 from Rp 324,000 in 2001.  

Indonesians have also been traveling more, as the same data recorded an increase to about 116 million travelers in 2007 from 103 million in 2001. 

Jero said he had began several programs to boost domestic travel such as working out a plan with the Bali General Election Commission to turn this year’s campaign season into an arts and culture festival. 

“This year, domestic travelers will be our secret weapon,” Jero said.

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Bali tourism expiring: Experts

Foreign investment up, Jakarta takes most

The Jakarta Post, Jakarta | Thu, 12/11/2008 7:28 AM  

Endowed with rich natural resources and a large population, Indonesia is becoming more attractive for investors as indicated by an increase in the number of realized direct investment projects involving foreign businesspeople. 

Chairman of the Investment Coordinating Board (BKPM) Muhammad Lutfi said Wednesday actual domestic and foreign investment had reached US$14.2 billion in the January to November period, higher than the full-year target of $9.92 billion. 

Of the total, $12.5 billion was foreign direct investment (FDI), and the remaining $1.7 billion was domestic-based. 

“FDI jumped by 40 percent during the period ... But domestic investment plunged by 51 percent,” said Lutfi, who was a member of President Susilo Bambang Yudhoyono’s campaign team during the 2004 election. 

“The drop in domestic investment is due to the fact that local 

companies prefer to form joint ventures with foreign companies in order to pay less tax,” he said, adding that the condition was unlikely to continue as the government would soon implement a new tax law. 

Under the new tax scheme, income tax will be slashed to 28 percent in 2009 and to 25 percent in 2010 from the current 30 percent. 

The actual investment figure excludes those in the sector of oil and gas, mining, banking and financial institutions, including insurers. 

Jakarta received the largest chunk of FDI, reaping $9.62 billion from 404 projects, followed by West Java with $2.39 billion from 255 projects, and Riau with $460.9 million from eight projects. 

In domestic investment, West Java ranked the top with Rp 3.67 trillion (US$334 million) from 52 projects, tailed by East Java with Rp 2.56 trillion from 37 projects, and Banten with Rp 1.95 trillion from 29 projects. 

According to Lutfi, the transportation, storage, telecommunications, metal, machinery, electronics and automotive sectors were the largest contributors to the investment. 

“The good news is that so far some 650,000 people have been employed in the realized investment projects (begun) between January and November.”  “This is a sign that our investment climate is getting better. We hope the trend will continue, especially through intense and serious efforts by local administrations to net more investors,” Lutfi said. 

Last year, FDI reached $10.34 billion; with top sectors including transport, storage, communications and chemicals and pharmaceutical. 

Domestic investment topped Rp 34.8 trillion ($3.16 billion), primarily due to projects involving the paper and printing industry, the food industry and the metal, machinery and electronics industry. (dis) 

 

Acer starts multibrand strategy with eMachines

The Jakarta Post, Mon, 12/01/2008 5:56 PM  

Already a market leader in Indonesia's computer market, Acer has further expanded its operations here with the introduction of its new eMachines brand last week. 

After acquiring Packard Bell, Gateway and eMachines, Acer introduced the eMachines desktops and notebooks to the Indonesian market to expand its 37 percent market share here, Acer Group Indonesia president director Jason Lim said. 

Worldwide, the Taiwan-based company is third in terms of sales after Hewlett Packard and Dell. 

"Next, the Gateway brand will be introduced to the Indonesian market in the first quarter of next year," Lim said. 

Gateway computers are aimed mostly at younger users. 

"Students who prefer functionality over frills are our main target." 

Indonesians bought 1.2 million units of notebooks in the first three quarters of 2008, with Acer brands making up 37.7 percent of the total, he said. 

In 2007 full year sales, Acer accounted for 35 percent of the total 750,000 notebooks sold across all brands. 

"We estimate eMachines will expand our market share by 7 percent," he said. 

The figure could be much higher if the next year's projected slowdown in economic growth, which is translated into lower demand, is limited. 

The global economic downturn, which has now tipped many countries into recession, is projected to derail Indonesia's economic growth. Having initially assumed an economic growth of 6 percent for next year, Finance Minister Sri Mulyani Indrawati has said the government would settle for a growth of "above 5 percent". 

"While our average annual sales growth is around 100 percent, we forecast next year's sales growth will be 50 percent due to a decrease in consumers' purchasing power," Lim said. 

Data from consultancy firm Gartner for the third quarter of this year show that Acer Indonesia will maintain its top position with a 23.1 percent market share for computers overall, and shares of 37.7 percent and 9.2 percent for notebooks and desktops, respectively. 

eMachines was acquired by Acer at the end of 2007 through its acquisition of Gateway. Gateway bought former rival eMachines in 2004. 

Since its establishment in 1998, eMachines has sold five million PCs. It was the second largest vendor of desktop PCs sold through U.S. retailers and remains a stand-alone brand. 

Acer spent US$710 million for the acquisition of Gateway, completed last December. Acer also bought another PC company, Packard Bell, with its acquisition completed in February this year. (iwp)

TEI falls short of expectations

Mustaqim Adamrah, The Jakarta Post, Jakarta 

The recent 23rd Trade Expo Indonesia (TEI) recorded a total of US$214.17 million in transactions, a slight rise from the $208.26 million recorded at last year's event. 

But despite the increase, the figure was less than projected. 

"The bad news is we missed the target of $220 million because global demand is declining," Trade Minister Mari Elka Pangestu said. 

"But the good news is we were still able to record growth." 

Mari said a slowdown in Indonesia's "traditional markets", such as the United States and members of the European Union, partly contributed to the shortfall. 

For example, the value of transactions with Spanish businesses sharply declined from $23.91 million in 2007 to $2.07 million. 

Orders from Australian businesses also were down dramatically, from $13.71 million to $2.24 million. 

Orders from Japanese businesses fell from $11.26 million last year to $6.49 million, while transactions from Taiwan dropped from $9.88 million to $5.2 million. 

Despite missing the target, the TEI did manage to attract buyers from new markets, Mari said. 

Orders from new players accounted for $148 million of the total, including orders from Egypt ($28.47 million), Bulgaria ($12.25 million), Saudi Arabia ($6.26 million), Sudan ($4.65 million), Nigeria ($4.33 million), Pakistan ($4.32 million), Ukraine ($4.28 million), South Africa ($3.16 million) and Brazil ($3.14 million). 

"We'll now focus on emerging markets, like China and India, as well as on new markets, such as Turkey, Egypt, Iraq, Iran, Uzbekistan, Ukraine, Kazakhtan and Russia," Mari said. 

Indonesia is also trying to benefit from an expected drop in China's share of the international market as it is "losing its competitiveness in the manufacturing sector with the strengthening of the yuan against the U.S. dollar".