Two Japanese firms ready to relocate plants to Indonesia

Antara News, Tue, November 1 2011

Jakarta (ANTARA News) - Two Japanese companies are ready to relocate their plants from Thailand to Indonesia because of protracted flooding in the former, an official said.

"Because of the floods we have received a request from Japanese automotive and electronic manufacturers to relocate their plants from Thailand to Indonesia," the deputy for industry and trade to the coordinating minister for economic affairs, Edy Putra Irawady said here on Tuesday.

Edy said at least four companies, three of them from Japan and one from Europe, intended to relocate their plants to Indonesia.

The companies were automotive and electronic manufacturers which were currently operating in Thailand, he said.

"Two of the four companies are really new investors, while two others intend to relocate their plants and they are Japanese companies," he said.

But the companies had yet to file a formal request to the Indonesian government, he said.

"They phoned us to ask what incentives the Indonesian government can give to them if they relocate their plants here. For instance, will they receive tax holiday or not?," he said.

But Edy stopped short of revealing the names of the Japanese companies.

Asked whether they were large-scale automotive and electronic manufacturers such as Honda and Nissan, he said they were in the same class as the two Japanese companies.

He said two automotive companies which intended to expand their investment in Indonesia were Toyota and Mercedes Benz. Toyota planned to raise its investment by Rp7 trillion next year.

"They will make Indonesia their production base for their exports," he said.

Editor: Suryanto

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

Thailand donates US$100,000 for Mentawai tsunami victims

Antara News, Wednesday, December 1, 2010 16:59 WIB

Jakarta (ANTARA News) - The Thai government here Wednesday presented Indonesia with a cash donation of US$100,000 meant to help the victims of the tsunami that hit the Mentawai Islands, West Sumatra, last Oct 25.

According to a press release received here on Wednesday Thai Ambassador to Indonesia Thanatip Upatising symbolically handed over the funds to Indonesian Deputy Foreign Affairs Minister Triyono Wibowo on Wednesday.

A two-meter tsunami triggered by a magnitude 7.2 earthquake struck the islands off the western coast of Sumatra on October 25.

Recent research conducted by Indonesian and Japanese tsunami experts had concluded that the tsunami in Mentawai Islands had moved at a speed of 800 km per hour at sea.

"Based on the results of research conducted by tsunami experts from LIPI, Tokyo University and Hokkaido University, the tsunami at Maonai, Sabeuguggung, Purorougat, North Pagai, had moved at a speed of 800 kilometers per hour at sea and at 30-40 kilometers per hour after land fall ," an earthquake specialist of LIPI`s geotechnology division, , Eko Yulianto, said.

The tsunami surged over a distance of 100-250 meters inland , depending on the height of the tidal wave, he said.

"The height of the tidal wave that hit North Pagai was around six to seven meters," he said.

The National Disaster Management Agency (BNPB) stated the big earthquake followed by a tsunami in Mentawai Islands had affected a large number of villages and caused 408 deaths, 303 people to go missing and 270 others to sustain severe injuries.

The affected population was initially estimated at 33,817 persons. However, many islands had become inaccessible and the number of potentially affected people could be over 65,000.

Meanwhile, the government said it would provide temporary shelters for the tsunami victims while waiting for the reconstruction of the Mentawai islands area. The construction of the temporary shelters was expected to be finished next December.

"The shelters are located around 30-40 meters from the coastline. So, if a tsunami occurs again, people will be safe," Social Affairs Minister Salim Segaf Al-Jufri said.

Thai company will pay for Timor oil spill

Adianto P. Simamora, The Jakarta Post, Jakarta | Sat, 07/31/2010 11:37 AM

PTTEP Australasia has agreed to pay Indonesia compensation for damage to its territory near Timor from an oil spill caused by the Thai company’s rig, an official says.

“They have agreed to pay our claim,” Indonesian advocacy team leader Masnellyarti Hilman said.

An exact amount for compensation is still being calculated by the Indonesian government since the oil slick has expanded to cover over 66,000 square kilometers (sqm) of the Timor Sea.

More than 500,000 tons of oil spilled into the Timor Sea after a PTTEP Australasia oil platform exploded in the Montara field off Australia’s north coast in August 2009.

Negotiators from Indonesia and PTTEP Australasia met for the first time Tuesday in Perth. The two parties have not yet scheduled meetings.

The team will ask the National Aeronautic and Aviation Agency (LAPAN) to perform modelling on the areas affected by the spill before proposing a final amount for compensation, Masnellyarti said.

“We will collect supporting data from the Maritime Affairs and Fisheries Ministry, which previously reported a level of polycyclic aromatic hydrocarbons [PAH] that exceeded marine water quality standards,” she added.

Samples collected by the Ministry of Energy and Mineral Resources indicate that the hydrocarbons now found in the Timor Sea were similar to samples taken from the Montara platform, she added.

The Environment Ministry said its analysis showed the quality of sea water in Timor Sea failed to meet tolerable levels set by Indonesian government.

The ministry sampled sea water in five different areas.

It said that the total suspended density (TSS) of particulate matter in the samples was at 147 milligram per liter (mg/l), far higher than the tolerable level of 20 mg/l.

The East Nusa Tenggara environmental agency also found physical and chemical contamination from the oil spill that exceeded the tolerable level set by the Indonesian government.

The Montara field was developed by the Norwegian and Bermudan-owned Seadrill company and operated by PTTEP Australasia, a unit of PTT, the Thai state-owned oil and gas company.

The company’s oil platform exploded spilled more than 500,000 liters of crude oil into the Timor Sea.

Thirty-eight percent of Indonesia’s sea territory in the Timor Sea was affected by the spill, local fishermen’s catches dropped and thousands of tons of dead shallow water fish and whales were discovered.

The spill also destroyed seaweed farms cultivated by coastal communities in East Nusa Tenggara.

Transportation Minister Freddy Numberi, who is the head of the National Team for Ocean Oil Spill Emergency Situations, previously said the government asked PTTEP Australasia to pay US$5 million in initial compensation to repair environmental damage from the spill.

The initial payment will cover the short-term impacts of the spill, such as losses suffered by fishermen and seaweed farmers in the area, and is estimated to exceed Rp 247 billion, he said

“That was the figure when the oil spill area was still around 56,000 sqm. Now that the area extends over 66,000 sqm. We must recalculate the figure,” he said.

The East Nusa Tenggara provincial administration estimated damage from the oil spill in the short term could reach Rp 806.17 billion.

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25 Thai firms eye producing auto spare parts in Indonesia

The Jakarta Post, Jakarta | Wed, 03/24/2010 3:09 PM

As many as 25 firms from Thailand have expressed their interest in producing auto spare parts in Indonesia.

"That is good news," the Investment Coordinating Board (BKPM) head Gita Wirjawan said Wednesday as quoted by kompas.com.

However, Gita declined to elaborate on any planned investment numbers.

Thailand`s PTT expands Indonesian coal mining investment

Antara News, Thursday, February 4, 2010 15:19 WIB

Bangkok (ANTARA News/Asia Pulse) - In a bid to diversify investment risk in the energy industry, Thailand's PTT Group has taken a syndicated loan of US$380 million or some Bt12.5 billion from four domestic commercial banks to invest in Indonesia's coal mining business through Straits Asia Resources Limited (SAR).

The four banks are Siam Commercial Bank and Krung Thai Bank, as joint lead arrangers, with Bangkok Bank and Standard Chartered Bank acting as co-lenders. Chitrapong Kwangsuksathit, acting managing director of PTT International, a PTT subsidiary, said the loan amount would be used to increase SAR's coal production capacity to 11-12 million tons this year from 9 million tons in 2009.

It is expected the capacity would rise to 20 million tons in the next five years. He said the coal output would be exported to Japan, Hong Kong, and China. It is estimated the group would earn revenue of around US$500-600 million from the business.

Source:
Business in Asia Today - Feb.4, 2010
published by Asia Pulse

Ancol to perform in Thailand and Vietnam

Nani Afrida , The Jakarta Post, Jakarta | Tue, 11/24/2009 4:35 PM

Jakarta-owned developer and recreation operator PT Pembangunan Jaya Ancol will expand its business to overseas markets by performing dolphin shows in three countries—Vietnam, China and Thailand, starting next year.

The company president director, Budi Karya Sumadi, said that Vietnam would be the first country to be visited, which would cost Rp 10 billion (US$ 950,000) in investment.

“We will work together with Soui Tien Park in Ho Chi Minh, Vietnam. So, the budget would be smaller,” Budi Karya told reporters and investors during the company public expose in Jakarta on Tuesday.

According to Budi Karya, Ancol would spend about Rp 20 billion to perform dolphin shows in those countries.

“The shows overseas are part of our plans to boost our revenue next year. We also have several other programs in the city amusement park,” he said.

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Thai Banpu plans $466 mln investment, wary on outlook

Reuters, By Pisit Changplayngam, Wed Nov 11, 2009 5:41am EST

BANGKOK, Nov 11 (Reuters) - Banpu BANP.BK, Thailand's largest coal miner, said on Wednesday it planned to invest $466 million over the next six years, but warned lower average selling prices in 2010 would mean just single-digit revenue growth.

"Most of our investment money for existing projects will be spent on coal rather than the power business," Chief Executive Chanin Vongkusolkit told reporters, referring to spending plans starting next year.

Of the total investments, $189 million would be for coal mining projects in Indonesia, $22 million for its coal business in China and the rest for its 40 percent owned Hongsa lignite power plant project in Laos, Chanin said.

Under the plan, the company aimed for total coal production in China and Indonesia to rise to 33.5 million tonnes, he said, without giving a comparison.

Banpu is also the fourth-biggest coal miner in Indonesia with five coal mines, and has three in China. It is now on the lookout for new assets in the region, mainly in Indonesia and Australia.

"We are quite capable of getting help from financial institutions -- with cash flow and assets worth about 50 billion baht and debt to equity of 0.24, say -- if we were to win any bidding or acquire new businesses," he added.

Banpu shares closed up more than 3 percent on Wednesday at their highest in nearly a month at 462 baht, while the broad market .SETI was up 1.4 percent.

On Tuesday it reported a higher-than-expected 22 percent rise in third-quarter net earnings after the market closed, helped by higher coal sales from Indonesian mines and gains from coal swaps.

LOWER COAL PRICES

Chanin said the company's 2010 revenue would grow by a single-digit percentage from this year's expected 57 billion baht ($1.71 billion) as it expected average coal prices in 2010 to fall below the $72 a tonne targeted this year.

Sixteen analysts polled by Thomson Reuters I/B/E/S forecast revenue of 54.8 billion baht, down 1.6 percent from an expected 55.7 billion baht this year.

"Sales in 2010 will still grow in volume, but having said that, average sale prices would be lower as we'll be expecting more low-quality coal, which would weigh on sales growth," he added.

At the end of September, Banpu's coal reserves stood at 581.4 million tonnes, down 1.1 percent from the previous quarter.

Its average coal selling price in the third quarter was $69.49 per tonne, down 17 percent from a year earlier.

Chanin said he expected fourth-quarter sales of about 16 billion baht, but Banpu would see "less net profit" compared to its 3.81 billion baht ($114.4 million) in the third quarter due to a maintenance shutdown at its 50 percent owned BLCP plant, along with a fall in average selling prices. ($1= 33.30 Baht) (Writing by Ploy Ten Kate; Editing by Alan Raybould)

Indonesia, FAO establish food security cooperation

Jakarta (ANTARA News) - The Indonesian government signed a Letter of Intent on food security with the UN Food and Agriculture Organization.

The LoI, according to the foreign ministry, was signed by Agriculture Minister Anton Apriyantono and the FAO director general Jaques Diouff on the sidelines of the FAO Asia Pacific Regional Conference in Bangkok, Thailand, this week.

The signing of the LoI was done also in the presence of the Indonesian Ambassador to Thailand Mohammad Hatta, and the Indonesian Ambassador to Italy Mohammad Umar.

In the Asia and Pacific region, and among the other developing countries, Indonesia was believed to have a high commitment to maintain food security stability. For the Indonesian success, FAO has asked Indonesia to contribute to increasing food security and agricultural development in other developing countries.

In this case, FAO asked for Indonesian help for its experts, technology transfer and other technical assistance to the other developing countries under the South-South Cooperation framework.

The cooperation is also based on Indonesia`s experience in the 1982-2002 period, which has given technical assistance for a number of countries in Asia and Africa.

In his tour of Thailand, the agriculture minister also had a bilateral meeting with his Thai counterpart Theera Wongsamut to discuss Indonesia`s initiative for an RI-Thailand Expert Group Meeting on an exchange of information and the success of the two countries in reaching food security.

Palestinian Ambassadors follow diplomatic training in Indonesia

Jakarta (ANTARA News) - An international diplomacy training which had been going on for almost a month now in Jakarta and in some other cities in Indonesia were followed by 23 foreign diplomats, including four Palestinians who are ambassadors to Bulgaria, Zimbabwe and Tanzania.

Deputy Foreign Minister Triyono Wibowo when opening the training in Jakarta Thursday said that the training for the Palestinian officials was one form of Indonesia`s high commitment to help the struggle of the Palestinian people.

The diplomatic training opened at the foreign ministry on Thursday was a Foreign Service Staff School held from March 30 to April 24, 2009.

The third Sesparlu was attended by 13 senior diplomats from Indonesia and nine diplomats from China, Vietnam, Singapore, Thailand, Brunei Darussalam, Cambodia, Myanmar, Malaysia and Laos as well as four Palestinian ambassadors.

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.

Myanmar, Indonesia seek direct trade link

www.chinaview.cn, 2009-03-29 10:39:54

YANGON, March 29 (Xinhua) -- Myanmar and Indonesia are seeking direct trade link, direct banking transaction and direct Yangon-Jakarta air link to boost their bilateral economic and cooperation, the leading local weekly Yangon Times reported in this week's issue, quoting Indonesian official sources.

So far, the two countries are trading through Malaysia, carrying out banking transaction through Singapore and connecting without direct air link.

The report also quoted the two countries' businessmen as saying that Indonesia imported from Myanmar beans and pulses, onions and marine products, while it exported to Myanmar in return crude oil, cigarettes, and medicines.

Indonesia's beans and pulses import from Myanmar amounted to 20,000 tons annually, the report added.

Indonesia is Myanmar's fourth largest trading partner among members of the Association of Southeast Asian Nations (ASEAN) after Thailand, Singapore and Malaysia, having a bilateral trade of 235.09 million U.S. dollars with Myanmar in 2008. Of the total, Indonesia’s exports to Myanmar amounted to 209.03 million dollars, while its imports from Myanmar were valued at 26.06 million dollars, according to Myanmar official statistics.

Meanwhile, Indonesia's investment in Myanmar has so far reached over 241 million dollars since late 1988 when Myanmar opened to such investment, standing the 9th among Myanmar's foreign investors.

Editor: Deng Shasha

RI may benefit from Nike's global rationalization strategy

Mustaqim Adamrah, The Jakarta Post | Mon, 03/23/2009 1:22 PM

Indonesia's footwear industry may gain more orders placed by United States-based sports apparel company Nike Inc., following plans by the footwear giant to stop orders at four factories globally as part of a major rationalization program, cutting orders to take account of the global economic downturn, as demand has been slashed by falling purchasing power.

Industry Minister Fahmi Idris said last Friday that none of the four factories that are negatively affected are located in Indonesia.

"Nike says it will stop placing (shoe) orders at four factories but none of them are in Indonesia. Its good news," he told reporters at the ministry, while reading a short message service he received from Nike's country manager for Indonesia, John Richard.

"Indonesia will not be affected by Nike's plan. Instead, Indonesia may have Nike place more orders at factories here," he said.

The move made by Nike is prompted by a double-digit decline in shoe orders in the global market amid the economic downturn, which started to impact negatively on world trade, and on shoe production in Indonesia, in the second half of last year.

The ministry's director general for metal, machinery, textiles and miscellaneous, Ansari Bukhari, said Nike usually placed orders in Vietnam, China and Thailand, as well as in Indonesia.

"Our condition is deemed as the most conducive, compared to other countries (where Nike usually places orders)," he said.

The domestic shoe market accounts for 235 million pairs per annum, including 94 million pairs made by local firms and 141 million pairs imported from abroad.

Every year, national shoe production, mostly for export, amounts to 1.2 billion pairs , including 800 million pairs of sports shoes.

Around 60 percent of sports shoes are orders from Nike.

Japan EPA affected by crisis

Mustaqim Adamrah, THE JAKARTA POST, JAKARTA | Fri, 03/20/2009 12:31 PM

Part implementation of Japan’s EPA agreement with Indonesia to help develop human resources in 13 industries is delayed by the economic crisis.

An expert assistant to Industry Minister Fahmi Idris, Achdiat Atmawinata, said Thursday that out of the 13 sectors programmed under the Manufacturing Industrial Development Center (Midec), part of the Indonesia-Japan EPA economic cooperation agreement, three of the components mentioned have not yet started to be implemented.

The Midec training program is a supporting part of the Indonesia-Japan Economic Partnership Agreement (IJ-EPA), a free trade agreement between the two countries which came into force last July.

“The ongoing economic crisis has hurt Japan’s economy and consequently affected the implementation of the Midec.”

“[Therefore] we set a target that the work for three remaining sectors – electronics, petrochemicals and food and beverages – would start in the fiscal year of 2009,” he added.

The 13 sectors include metal work, welding, industrial molds and dies, export promotion and investment, micro business, automotive, steel, textile, oleo chemicals and non-iron metals.

Indonesia could earn up to US$68 billion by 2012 from expanding businesses in the 13 areas, if they are well-developed under the Midec program, Achdiat said.

The IJ-EPA requires Japan to actively help develop the 13 sectors under the Midec program because this would also help determine “the level of Japan’s products absorbed in the Indonesian market”, he said.

Industry Minister Fahmi Idris said earlier that industrial capacity building under the Midec programs would experience a “little” disturbance as the global financial crisis is hitting the world’s developed economies, including Japan.

“Midec training and education related programs may be delayed [because of the crisis],” he said.

“But [the crisis] will not delay programs [related to efforts to intensify export-import activities between the two countries] by any means.”

“Even if there were a decline in the volume and value of our exports to Japan and vice versa, that would not result from any delay in [the implementation of] Midec programs.”

Under the IJ-EPA, Indonesia agrees to reduce to zero 92.5 percent of 11,163 tariff lines covering import duties on a wide range of items incrementally over a period of 15 years from the start of the agreement.

Indonesia has further scrapped 328 tariff lines imposed on steel products under the user specific duty free scheme (USDFS), which also comes under the IJ-EPA. This covers steel products used in automotive and auto parts, electronics, energy and construction.

Indonesia reciprocally accesses duty reductions for exports of fruit and fishery products to Japan.

The Economic Partnership Agreement is designed to strengthen bilateral economic relations between the two Asian nations, covering not only issues related to trade and tariffs but also investment and movement of labour.

Besides Indonesia, Japan has also signed EPA agreements with Singapore, Mexico, Malaysia, Chile and Thailand.

Thai Ratchaburi may take Indonesia power plant stake

Reuters, Thu Mar 19, 2009 2:58am EDT

BANGKOK, March 19 (Reuters) - Thailand's Ratchaburi Electricity Generating Holding RATC.BK said on Thursday it was in discussions with PT Truba Alam Manunggal Engineering Tbk about investing in a power plant in Indonesia.

Ratchaburi, Thailand's largest private power producer, expected to take about 40 percent in the coal-fired power plant, which had an estimated cost of $274.3 million, the Thai firm said in a statement.

The 270-megawatt power plant is located in Kuala Tanjung and commercial operations are expected to begin in 2010.

Apart from Indonesia, Ratchaburi has said it is looking for opportunities to invest in Laos and Vietnam as part of its attempt to boost capacity.

Ratchaburi is 45 percent owned by state-run Electricity Generating Authority of Thailand and 15 percent owned by Banpu (BANP.BK), the country's biggest coal miner.

At the midday break, Ratchaburi shares were up 0.65 percent at 38.75 baht, while the overall market was 0.94 percent higher. (Reporting by Khettiya Jittapong; Editing by Alan Raybould)

Thai PTTEP quits two Indonesian, Bangladesh projects

Reuters, Tue Mar 17, 2009 11:41pm EDT

BANGKOK, March 18 (Reuters) - Thailand's PTT Exploration and Production (PTTE.BK) said on Wednesday it had decided to withdraw from two petroleum exploration projects in Indonesia and Bangladesh.

The two projects are Indonesia Merangin 1 and Bangladesh 17 and 18, where the potential for commercial discoveries was deemed low after exploration, it told the stock exchange in a statement.

PTTEP, which holds a 40 percent stake in the project and owns two other exploration projects in Indonesia, Bengara-1 and Semai II, said its withdrawal was subject to approval from the Indonesian authorities.

PTTEP has a 30 percent participation interest in the Bangladesh project.

A Bangladeshi official said on Tuesday that France's Total SA (TOTF.PA) and four partners, including PTTEP, had abandoned their rights to explore in the two offshore blocks. [ID:nDHA501448] ($1 =35.76 Baht) (Reporting by Ploy Chitsomboon; Editing by Alan Raybould)

Five countries studying disaster preparedness in West Sumatra

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

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

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

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

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

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

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

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

Mercedes, Honda send wave of optimism across Indonesia's automotive industry

Mustaqim Adamrah and Benget Besalicto Tnb., THE JAKARTA POST, JAKARTA , 14 March 2009 

Amidst the worsening global economic downturn, major international companies are showing their confidence in Indonesia, as the country is forecast to be less negatively affected by the global downturn compared to neighboring countries. 

Germany's automotive giant Mercedes-Benz and Japan's Honda have recently both decided to make Indonesia their production base for multi-purpose vehicles (MPVs). 

Investment Coordinating Board (BKPM) chairman Muhammad Luthfi said Friday Mercedes was carrying out a feasibility study on the production of luxury multipurpose vehicles (MPV) in the country. 

The new Mercedes MPV models would include the Mercedes Viano, Luthfi said. 

"The global economic crisis has caused Mercedes-Benz to suffer declining sales in many parts of the world," he said. 

"However, it posted sales growth (last year) only in China by 17 percent and in Indonesia by 10 percent." 

Based on these figures, Mercedes believed there would be a strong demand in Indonesia in the near future, especially in the MPV class, according to Luthfi. 

The Indonesian premium MPV market is still dominated by the Toyota Alphard and Nissan Elgrande. 

Luthfi refused to cite the amount of investment planned by Mercedes here, but said Mercedes would use its existing completely knocked down (CKD) factory to produce the MPV. 

He also said Mercedes would spend around Rp 200 billion (US$16.95 million) this year to repair facilities in its factory. 

Mercedes' existing factory, located in Gunung Putri in Bogor, West Java, runs with an installed capacity of 20,000 units and annual production of around 3,000 units. 

In the global market, Mercedes has produced premium V-class MPVs including the Mercedes Vito and Mercedes Viano, which Indonesia has imported from Thailand in completely built units (CBUs). 

Lutfi said Mercedes' expansion plan also resulted from the free trade agreement recently signed between the Association of Southeast Asian Nations (ASEAN) and New Zealand and Australia. 

The deal, he said, would provide a big opportunity for the automaker to boost sales in those two countries by exporting the MPV vehicles from Indonesia. 

PT Mercedes-Benz Indonesia's deputy marketing director Yuniadi Hartono confirmed the investment plan. 

"But we could not yet mention the timeframe and the amount of investment for the new product," he said. 

He said the premium car market in Indonesia accounted for just 4,000 units per annum, or 1 percent of total national car sales. 

The Indonesian Automotive Industry Association (Gaikindo) forecasts sales of new cars, trucks and vans will decline by 32 percent to around 405,000 units this year from 603,774 last year as the full impact of the global economic downturn hits Southeast Asia's largest economy. 

Auto sales in January dipped 24 percent to 32,167 units compared to 42,489 in the same period last year. Toyota. with its affordable Avanza van, secured around 39,7 percent of market share, up from 32.3 percent a year earlier. 

Toyota's Japan rival Honda is trailing behind, selling mostly the popular city car the Honda Jazz. 

In a bid to boost its presence in the market, Honda has recently announced its plan to make Indonesia its Southeast Asia production base for the affordable Freed MPV. 

According to Gaikindo, more than 60 percent of the four wheeler market in Indonesia is still being dominated by sales of MPVs. 

Jonfis Fandy, the marketing director of PT Honda Prospect Motor, said Thursday that planned expansion into the affordable MPV market was part of the company's strategy to anticipate the rising demand for minivans in the next two years when the economy was likely to boom. 

"Now is the time to invest in the new market," said Jonfis, adding that realizing such investment now would be much cheaper rather than doing it later. 

Jonfis said for the first time outside Japan, the Freed would be produced in Karawang, West Java, and was scheduled for launch in June. 

The MPV will be powered by a 1,500 cc engine, while its body will possibly be similar to the higher class MPV Honda Stream. 

"But with its specific design and price, it'll create a new market," said Jonfis. 

"This is also part of our strategy to deal with the economic crisis that may cause a drop in demand. By creating this new market, we hope to at least maintain our total sales this year." 

He refused to detail the total amount of investment for the Freed. 

Gaikindo chairman Bambang Trisulo shared similar view with Jonfis that Honda's decision to expand now was particularly due to the current low cost of investment. 

"Due to the ongoing economic crisis, prices have been declining. That has made investing cheaper if you compare with investing in normal times. Companies that have money will make such moves now," he said. 

He cited the example of South Korea when it heavily invested in a number of key industries such as steel, dockyards and a number of infrastructure projects during the 1998 Asian financial crisis. 

"Several years after the crisis they were ready for the booming market," he said. 

Despite a forecast of declining sales, Bambang remains upbeat on the Indonesian automotive market because it performs better than that of the neighboring countries. 

"Despite the drop, however, it is still better than the other markets in this region. Not to mention the European and American markets, which have seen a very serious drop due to their ongoing crisis," he said.

Related Article:

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Banpu expansion eyes stakes in aust, indian power plants

Company also plans to buy another coal mine in Indonesia 

By Nalin Viboonchart, The Nation, Hua Hin, March 7, 2009 

Thailand's coal mine and energy firm Banpu plans to acquire controlling stakes in power plants in both Australia and India as well as to purchase an additional coal mine in Indonesia, chief executive Chanin Vongkusolkit said yesterday. 

The move is part of the company's 2009-2013 business development plan. The company started developing the plan in October and is still adjusting it to be in line with the current economic situation. 

Besides the interest in the power plants in Australia and India, the company plans to purchase the coal mine in Indonesia as part of its coal-mine business expansion. It currently has five coal mines in Indonesia and two in China. 

Chanin added that the move to acquire shares in the power plants and the coal mine depends on the market situation. 

He said that currently the share prices of power plants in Australia have dropped, while some of them have had to shut down, giving Banpu a business expansion opportunity. 

For this year the company plans to spend US$208 million (Bt7.5 billion) on expanding the production capacity of its coal mines in Indonesia and in China. Of the total, $126 million is set aside for its mines in Indonesia and the remaining $82 million for those in China. 

The company aims to boost the combined total production capacity of coal mines in Indonesia to 20.5 million tonnes this year from the present 18.1 million tonnes, and that in China to 5.6 million tonnes from the present 4.5 million tonnes. 

"There's still coal demand in the market," Chanin added. 

As of the first two months of the year, the company already secured coal contracts totalling 71 per cent of its full production capacity in Indonesia and China this year. 

Of the total contracts, 57 per cent feature coal that will be sold at a fixed price, while 14 per cent is for coal that will be sold according to the market price at the product delivery date to the buyers. 

For the remaining 29 per cent of production capacity, 14 per cent is in the process of price negotiation and the other 15 per cent is for contracts that have yet to be finalised. That coal is expected to be sold at the spot price. 

Chanin said the sale price of Banpu coal was expected to be around US$72 per tonne this year on average, unchanged from last year. The sale price jumped from $41 per tonne in 2007 to $72 per tonne last year. 

Banpu will issue debentures in the second quarter of this year worth Bt6 billion to refinance debt while keeping some part of the amount as working capital. The refinancing will help cut its interest burden by at least 0.5 per cent per year. 

The debt it will refinance was incurred by a loan of Bt14 billion it assumed on taking over 100 per cent of the shares of the Asian-American Coal mine in China last year.

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Thai Banpu to invest $208 mln in Indonesia, China

Growth Triangle tourism cooperation

Bangkokpost.com, 28/02/2009 at 07:54 PM 

Phetchaburi - Leaders of Thailand, Indonesia and Malaysia on Saturday agreed to step up closer tourism cooperation under the Indonesia-Malaysia-Thailand Growth Triangle in a campaign to be launched this year. 

Prime Minister Abhisit Vejjajiva also urged his two counterparts, President Susilo Bambang Yudhoyono of Indonesia and Malaysian Prime Minister Abdullah Badawi, to further cooperate in energy to strengthen regional security in the longer term. 

The three leaders held talks on the sidelines of the Association of Southeast Asian Nations summit in Cha-am district of Phetchaburi. 

PM's Office Minister Virachai Virameteekul said after the fourth IMT-GT meeting, chaired by the Indonesian president, that the new tourism campaign for the sub-region would be officially launched in Sumatra Island in coming months as a joint effort between the three countries. 

The private sector would be encouraged to take leading role to promote tourism opportunity in the sub-region including medical tourism, he said. 

Mr Abhisit has expressed his opinion that tourism would be the key for IMT-GT members to get through the current global economic crisis. 

Besides, the premier called on Indonesia to develop cooperation on liquefied natural gas. With Malaysia, Thailand proposed joint development of the energy land bridge which is a part of Thailand's long-delayed Southern Seaboard project. 

The southern seaboard has been suggested to be develop in line with Malaysia's northern and eastern regional development plan.