Bringing the Internet within reach of 100 million Indonesians from 20 kms above Earth

Google Blog, Thursday, October 29, 2015  

In Indonesia today, only about 1 out of every 3 people are connected to the Internet. And even though most of their connections are painfully slow, they’re doing some pretty incredible things. Startups like motorcycle delivery service Go-Jek are building impressive adaptations to Indonesia’s unique challenges, while small businesses like fashionable hijab shop HiJup are using the web to redefine marketplaces.

Still, a majority of Indonesians don’t have access to the educational, cultural, and economic opportunities of the Internet. That’s why we’re pleased to announce that Indonesia’s top three mobile network operators—Indosat, Telkomsel, and XL Axiata—have agreed to begin testing Project Loon balloon-powered Internet over Indonesia in 2016. These tests represent an important step toward bringing all of Indonesia online.

From left to right: Ririek Adriansyah, CEO of Telkomsel; Dian Siswarini, CEO of
XL Axiata; Alexander Rusli, CEO of Indosat; Mike Cassidy, VP of Project Loon;
Sergey Brin, President, Alphabet Inc

Loon balloons act like floating mobile phone towers; flying on the stratospheric winds at altitudes twice as high as commercial planes, each balloon beams an Internet connection down to the ground, and as one drifts out of range, another moves in to take its place. Loon can help telecommunications companies extend their networks; high in the sky, we can help overcome the difficulties of spreading equipment across an archipelago of 17,000 islands of jungles and mountains, providing connectivity to even the most remote islands.

Project Loon balloons travel approximately 20 km above the Earth’s surface in

 the stratosphere. Winds in the stratosphere are stratified, and each layer of wind 

varies in speed and direction. By moving with the wind, the balloons can be 

arranged to form one large communications network

  

Over the next few years, we’re hoping Loon can partner with local providers to put high-speed LTE Internet connections within reach of more than 100 million currently unconnected people—that’s enough speed to read websites, watch videos, or make purchases. From Sabang all the way to Merauke, many of these people live in areas without any existing Internet infrastructure, so we hope balloon-powered Internet could someday help give them access to the information and opportunity of the web.

But it’s not the only step Google is taking toward making the Internet both accessible and useful for people in Indonesia. Android One phones are helping to make high-quality smartphones more accessible in a country where most people first access the Internet on a mobile device. And along with that, we’re working to ease the use of data with features sure as Search Lite, which streamlines search so pages load more quickly, or by optimizing web pages so that they require less data to load. Indonesia is also one of the first countries where YouTube users can take videos offline to watch later during periods of low or no Internet connectivity.

We’re also doing what we can to ensure that language isn’t a barrier to the opportunities of the web. Google Translate was introduced for Bahasa in 2008, and more recently we’ve expanded it to Sundanese, a language that’s spoken by nearly 40 million people living on the island of Java.

Soon we hope many more millions of people in Indonesia will be able to use the full Internet to bring their culture and businesses online and explore the world even without leaving home. And for those of you who’ve never been to this country of rich culture and natural beauty, we invite you to head over to Google Street View to explore the famous temples at Borobudur and Prambanan.

Posted by Mike Cassidy, Vice President, Project Loon

Jakarta to host Turkey exports fair

The Jakarta Post, Jakarta | Thu, 06/02/2011

The Istanbul Exporters Association (IEA-IIB), in cooperation with the Turkish Embassy in Jakarta, will hold the Turkish Export Product Fair at the Jakarta Convention Center from June 2-4.

“We intend to increase the cooperation between Turkish and Indonesian businessmen in order to develop the bilateral trade relationship between both countries,” IEA-IIB chair Zekariye Mete said Thursday.

This is the second time Turkey has held such a fair in Indonesia.

Thirty-three Turkish companies from various industries including food and beverage, baby products, heavy equipment and furniture will participate.

Zekariye said Indonesia and Turkey were important developing markets.

“Indonesia is a rapidly developing country and has a strategic position in Southeast Asia,” he said as reported by kompas.com.

Batam designated as ASEAN batik trade center

Antara News, Sat, May 21 2011

Batam (ANTARA News) - The Trade Ministry has designated Batam city in Riau Islands province as an ASEAN Batik Trade Center, a local trade official said.

"The Trade Ministry approved the designation of Batam city as an ASEAN Batik Trade Center yesterday," spokesperson of Batam`s Indonesian Chamber of Commerce and Industry (Kadin), Nada Faza Soraya, said here on Saturday.

She said the selection of Batam as an Asean Batik Trade Center was agreed on during an ASEAN summit in Jakarta early this month.

According to her, it was the Kadin Indonesia Foundation and Indonesian Batik Foundation that had asked the Trade Ministry to name Batam as a batik trade center in the ASEAN region.

Nada said t due to its strategic location and sea border with several Asean countries, the city was desfined as the Asean batik trade center.

In late 2009, the UN Educational, Scientific and Cultural Organization (UNESCO) officially recognized batik as an Indonesian cultural heritage.

Batik was considered not only as part of Indonesian cultural heritage but also recognized as a representation of humanity`s culture for its rich value and cultural inheritance.

With the determination of Batam as batik trade center in Asean, she said Indonesian batik industry was expected to be more prospective.

Therefore, Nada added that Kadin along with several other batik foundations would conduct batik education and its familiarization.

According to her, batik-related education was necessary for Indonesian community to know more about Indonesian cultural riches which have been recognized internationally.

"The Indonesian community need to know various kinds batik motif after it has been internationally recognized," Nada said, adding that every detail of batik had the value of a decent life that has to be maintained.

According to her the color and motif of batik also reflects the regions in Indonesia because every region has its own typical motif.

"Batik is found all over Indonesia and every area in the country has its own motif of batik," she said.

Editor: Jafar M Sidik

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EU will inject €30m to boost RI trade, investment climate

Esther Samboh, The Jakarta Post, Jakarta | Wed, 05/04/2011

The European Union’s (EU) 27 member states will inject €30 million (US$44.66 million) into Indonesia to strengthen the trade and investment climate, according to the countries’ joint press statement.

“[The €30 million support] includes a program to support Indonesian business organizations (ACTIVE), the Trade Support Program (TSP) II to support the Indonesian government in the field of export quality infrastructure and the Trade Cooperation Facility (TCF), a flexible mechanism to support attracting investments to Indonesia,” said an official statement issued following EU Trade Commissioner Karel de Gucht’s visit to Indonesia.

The EU member states provided over €66 million in 2009.

Negotiations between Indonesia and the EU would facilitate the export of wood and paper products from Indonesia to European companies, De Gucht said at a news conference at the Kempinski Hotel in Jakarta.

Indonesia is Europe’s largest investment destination and second largest market. The EU invested a total $2.78 billion in Indonesia -- excluding the oil and gas, banking and financial sectors – for a total of 521 projects, Investment Coordinating Board (BKPM) data shows.

In his first visit to Indonesia, De Gucht met with Trade Minister Mari Elka Pangestu to discuss bilateral trade and investment issues, including and several issues of market access

The high-level gathering assessed the EU-Indonesia Vision Group’s recommendations to boost commercial relations between the countries. Established in 2009, the vision group was formed to invigorate the relationship between Indonesia and the EU by strengthening economic growth and the alleviation of unemployment and poverty through investment and trade in key sectors.

“One important step recommended by the Vision Group after the completion of its report is to have early consultation with stakeholders to generate widely shared interests and support from businesspeople, government officials and civil society in both countries on the idea of Indonesia-EU comprehensive economic partnership agreement,” the joint statement said.

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To boost ties, Sweden to open trade office in Jakarta

Veeramalla Anjaiah, The Jakarta Post, Jakarta | Sun, 02/06/2011

In line with the growing economic interaction between Sweden and Indonesia, Stockholm will open its first ever trade office in Jakarta on Monday, the Swedish ambassador to Indonesia says.

“Our trade minister Ewa Bjorling will formally inaugurate the new trade office on Monday,” Ambassador Ewa Polano told The Jakarta Post on Sunday.

Trade between the two countries currently hovers around US$1 billion, a huge jump from the $607.86 million in 2005. More than 40 Swedish companies currently operate in Indonesia.

Minister Bjorling and her 25-member business delegation were scheduled to arrive in Jakarta on Sunday.

Besides opening the trade office, Bjorling will address a seminar, “Green Growth for Indonesia”, on Tuesday. She will also hold discussions with Environment Minister Gusti Muhammad Hatta, Public Works Minister Djoko Kirmanto and Trade Minister Mari Elka Pangestu.

Bjorling plans to meet with ASEAN Secretary General Surin Pitsuwan on Tuesday.

Lenovo to Open Subsidiary in Indonesia

Jakarta Globe, Shirley Christie | November 30, 2010    

Jakarta. Chinese computer giant Lenovo, which purchased IBM’s personal computer division in 2005, plans to establish an Indonesian subsidiary by April, a company representative has said.

In this file photo, a Lenovo laptop computer is displayed.
 Lenovo plans to establish an Indonesian subsidiary
by April. (Antara Photo/Audy Alwi)      

Sandy Lumy, the company’s chief representative for Indonesia, told the Jakarta Globe on Tuesday that the country had better growth potential than other nations in Southeast Asia.

According to International Data Corporation figures for 2009, only 38 out of 1,000 Indonesians own a personal computer.

The company declined to share its sales targets or projected investment in the country, only saying that it planned to open the subsidiary office by April.

Currently, Lenovo exports its products from China to Singapore before passing them on to the local market in Indonesia.

Lenovo plans to start delivering products directly to Indonesia in May, after its subsidiary is established. Sandy said there were no plans to open a local factory.

Lenovo, which began life as a project of the Chinese Academy of Sciences in 1984, recently celebrated the 18th anniversary of the ThinkPad portable computer, a former IBM trademark, which has sold more than 60 million units worldwide.

“That is approximately 16 units per second,” Sandy said.

Since acquiring the IBM stable in 2005, Lenovo has sought to polish its image as a global — not just Chinese — company.

The company claims to be No. 2 in the Indonesian market with a 20 percent market share, behind Hewlett-Packard.

It is the No. 1 computer brand in China.

Kadin hosts EU-Indonesia Business Dialogue

Nani Afrida, The Jakarta Post, Jakarta | Mon, 11/29/2010

The Indonesian Chamber of Commerce and Industry (KADIN) and five European business chambers launched the 2-day EU-Indonesia Business Dialogue in Jakarta on Monday to boost trade and investment.

Indonesia and the EU were strategic partners that shared complementary economic interests, Coordinating Minister for the Economy Hatta Rajasa said on Monday.

Senior EU trade relations official Rupert Schlegelmilch said that the EU was Indonesia’s second largest export partner.

“The EU is also a [foreign direct investment] source for Indonesia with around 50 billion euro ($US66.19 billion) and over 700 European companies in the country,” he said.

Leaders of Indonesia companies will meet high-level representatives from European companies to discuss strategic business during the conference.

US wants to be RI's No. 1 trade partner, Obama says

Erwida Maulia, The Jakarta Post, Jakarta | Wed, 11/10/2010 2:19 AM

US President Barack Obama says he’s not happy that the US is Indonesia's third largest trading and investment partner.

"I've informed [President Susilo Bambang Yudhoyono] that we don't like to be ‘No. 3’. We want to be No. 1," Obama told a press conference after a meeting with Yudhoyono at the State Palace.

After Obama twice cancelled visits to Jakarta, the two leaders launched a comprehensive partnership on Tuesday.

The agreement covers cooperation in trade and investment, education, energy, climate change and environment, security, democracy and civil society.

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US investment in RI soars to $871 million until Q3

US investment in RI soars to $871 million until Q3

Antara News, Tuesday, November 9, 2010 22:41 WIB | Economic & Business

Jakarta (ANTARA News) - US investment in Indonesia grew rapidly to US$871 million until the third quarter of this year, a minister said.

"Until the third quarter of 2010 (US investment) reached US$871 million, meaning that US investment outside the oil and gas sector grew rapidly," Coordinating Minister for Economic Affairs Hatta Rajasa said here on Tuesday.

The US investment in Indonesia stood at US$157 million in 2008, rose to US$171 million in 2009 and further moved up to US$871 in 2010 up to September, he said.

He expressed hope that US investors would invest in the country`s renewable energy. "We want a transfer of technology in the field of renewable energy. We hope there will be US investment in the management of renewable energy," he said.

He said Indonesia must be able to take advantage of President Barack Obama`s visit in Indonesia to boost two-way trade. Obama arrived here on Tuesday for a two-day visit.

The US was one of the main markets for Indonesian products and the two countries still had a plenty of chance to increase their trade, he said.

"The US ranks second in terms of our foreign trade volume and export destinations. We always enjoy a surplus in our trade with the US. This means that the US is a huge market for export commodities," he said.

He expressed hope that trade between the two nations would return to the pre-crisis level of US$21 billion in the years ahead.

"In 2009 the bilateral trade fell slightly. In 2010 it shows an upward trend and will hopefully return to the level of US$21 billion such as in 2008 when Indonesia recorded a surplus of more than US$5 billion," he said.

He declined to reveal the agenda of the meeting between the two countries during Obama`s visit in Indonesia to enhance bilateral trade.

But he added that the US always saw Indonesia as its strategic partner.

Related Article:

News Focus: Obama`s visit to boost RI, US trade

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.

WHO assistance to create healthy, pleasant traditional markets

Antara News, Thursday, September 23, 2010 00:10 WIB

Gunung Kidul, Yogyakarta (ANTARA News) - The World Health Organization (WHO) has provided 2,400 US dollars to support a program to improve the sanitary health infrastructure of the Argosari traditional market in Wonosari, Gunung Kidul district.

A Health Ministry official, Wilfred M Purba, said here Wednesday the financial assistance was given under a cooperation agreement between the ministry and WHO.

"The program has a non-physical aspect , namely to change the general public`s perception of traditional markets as disorderly, untidy, dirty establishments so that they would be able to compete with modern markets which were already beginning to operate in Gunung Kidul district." he said.

He said the physical assistance in the form of infrastructure was given based on the traditional market`s needs determined by market`s stakeholders and the Gunung Kidul district government.

According to Wilfred, the best way to create a healthy traditional market was changing the market stakeholders behavior, namely the behavior of the people selling their goods in the market, the market visitors, the market traders` association and the market management.

He said altering the stakeholders` behavior was important to change the traditional market`s image in addition to the provision of supporting facilities needed to keep the market healthy, clean, neat and pleasant to see.

"The direction of the traditional market can be used for buying and selling transactions and tourism market so that visitors besides buying what they need can also engage in recreation," he said.

He said the Argosari traditional market as one of tens of traditional markets in Indonesia which turned into model traditional markets.

A WHO Indonesia officer, Tri Prasetyo, said the aim of the programs was also to anticipate the spread of avian influenza.

"The interest of market users will possible decrease if directly talking about the anticipation of avian influenza so that we have delivered to the people about a healthy market as general," he said.

He said that the traditional market program had been implemented since July 2009 and it would end on 2011. "Now we are coming to the phase of training the market management." he said.

It’s time for civet coffee for Lampung farmers

Oyos Saroso H.N., The Jakarta Post, Bandarlampung | Thu, 08/12/2010 8:52 AM

Cashing in on the rising popularity of civet coffee is hard for coffee farmers in West Lampung regency, Lampung, to resist.

Farmer Wahyu Anggoro in Way Mengaku district said 1 kilogram of luwak or civet coffee beans could fetch between Rp 250,000 [US$28] and Rp 750,000, while regular dried coffee beans were sold at Rp 15,000 a kilogram. “One kilogram of ground civet coffee could fetch up to Rp 1 million,” said Wahyu.

Civet coffee is made from hard beans eaten by nocturnal animals, which then ferment in their stomachs before they are excreted with their shape intact. After being gathered, washed, sun dried, light roasted and brewed, the coffee is highly prized for its smooth flavor and non-bitter aftertaste, earning it the reputation of the world’s most expensive coffee.

The Indonesian Ulemas Council recently considered declaring the coffee haram but asserted it could be consumed (halal) if farmers cleaned the beans before they are ground.

Droppings used to be eagerly collected by farmers, believing the civet only picked and ate the finest coffee berries. Now the coffee is mostly produced by farmers.

In West Lampung, mainly in Belalau and Balikbukit districts, in recent years the coffee has been marketed locally and overseas, mostly to Korea and Taiwan.

Farmers raise between four to dozens of civets, feeding them with ripe coffee beans freshly picked from the farm. There are 10 luwak coffee trading groups in West Lampung, each able to sell up to more than 7 tons of coffee monthly.

“Traders from Thailand have come especially to buy luwak coffee. Traders usually sell it at higher prices of up to Rp 1 million per kilogram to visitors.,” Wahyu said.

Wahyu said traders should keep updated, such as determining the latest price of civet coffee on the global market, learning how to boost production and improve quality.

“In Lampung, luwak coffee is cheap, but not overseas. That’s why its production is very promising,” Governor Sjachroedin said. A cup of the coffee costs Rp 20,000 in a Bandarlampung hotel and only Rp 10,000 in the city’s cafes.

“We will help coffee farmers to process and package civet coffee, and help its marketing.”

RI chosen for EU study on free trade and jobs

The Jakarta Post, Jakarta | Tue, 07/13/2010 9:24 AM | National 

The ongoing project to assess the effects of trade on employment in Indonesia is expected to support new national trade and labor market policies, a labor official said Monday.

The Assessing and Addressing the Effects of Trade on Employment (ETE) program — a US$4.5 million European Union-funded project —  aims to analyze the effects of free trade on employment.

Indonesia was chosen as a research case because of its huge potential in the economically-active Southeast Asian region, said Ralf Peters, the International Labour Organization’s (ILO) chief technical adviser on ETE. 

Bangladesh, Benin, and Guatemala were also chosen for the study The ILO hopes that ETE, which started in 2009 and will run until 2013, will help policy makers and researchers reduce the negative effects of free trade on employment, he said.

“We will start from a theoretical basis, and we will be very practical in implementation later,” Peters said.

The ASEAN-China Free Trade Area (ACFTA), which went into effect on Jan. 1, will be included in the project assessment, he added.

Peters said the ACFTA would “no doubt” destroy jobs in Indonesia. However, the agreement will also reduce the price of intermediate goods imported from China and give Indonesian companies opportunities to increase exports of other products produced with existing competitive advantages, he said.

The experience of East Java under the ACFTA is not yet clear,  Manpower and Transmigration Ministry analyst Indro Warsito said.

The province recorded an overall trade deficit between March and May and its trade balance with China showed deficits of $39.93 million, $49.31 million, and $102.67 million in the same period.

“It’s premature to say that the agreement negatively affects employment in the province,” he said, adding that the ministry was investigating how many workers had been laid off or furloughed due to the trade agreement.

Warsito said the ACFTA could have a positive impact on employment and that import substitutions could reverse the trend of unemployment and encourage more workers to enter the labor market.

Chris Manning of the Australian National University said people had to look at the effect of trade development at a national level instead of focusing on regional effects.

“Indonesia has great capacity, as it is selling many commodities to the Chinese market,” he said.

Shinta Wijaya of the Indonesian Employers Association (Apindo) said the government should amend labor law to create more business and employment opportunities. She said existing law did not accommodate the rights of workers and employers.

Indonesian laborers are not ready for free trade, as the government still ignores or overlooks fundamental labor problems such as basic workers rights, Indonesian Prosperous Labor Union chairman Rekson Silaban said. (tsy)

RI, Turkey agree to increase bilateral trade

Antara News, Tuesday, June 29, 2010 21:58 WIB

Ankara (ANTARA News) - Indonesia and Turkey agreed to step up their bilateral trade from its current value at US$2.1 billion to US$5 billion over the next few years.

Turkish president Abdullah Gul and President Susilo Bambang Yudhoyono made the statement in a press conference after meeting at the Turkish presidential palace here on Tuesday.

"Indonesia is not only a country with majority Moslem population but also a country which is rich in natural resources and economic potentials. I even believe the US$5 billion target could grow to US$10 billion," President Gul said.

He said that would be possible because of the Turkish characteristics which are similar to those of Indonesians and because the psychological relationship between the two nations was of very long standing.

President Gul said now a Turkish airline had also opened a flight service between Jakarta and Istanbul enabling Asian people to go to Europe and vice versa.

President Gull said visa cooperation between the two countries cooperation would be stepped up to become a free visa cooperation to promote visits between the two countries.

President Susilo Bambang Yudhoyono meanwhile said he believed the US$5 billion trade target would be achieved in view of the current economic relations between the two countries.

"We are also inviting investors from Turkey to invest in various sectors such as geothermal energy, trade, economy and others," he said.

President Yudhoyono said the eight agreements that had been signed would open a new chapter in the relations between the two countries.

"Let us open a new chapter in the relations that keep increasing," he said.

President Gul said "President Yudhoyono`s visit to Turkey would not be merely symbolic but was very important."

After the meeting the two leaders witnessed the signing of cooperation documents in the fields of politics, defense industry, small and medium businesses, joint programs to increase investment and in news exchange bewteen state television station TVRI and Tukish television.

Eleven Indonesian banks to receive US financing

Antara News, Friday, June 18, 2010 20:58 WIB

Jakarta (ANTARA News) - The Export-Import Bank of the United States (Ex-Im Bank) Friday announced that it has given initial approval to 11 banks in Indonesia to receive financing as part of the banking facilities amounting to one billion dollars to support US exports to Indonesia.

The 11 banks are Indonesia Eximbank, Bank Mandiri, Bank Negara Indonesia, Bank Rakyat Indonesia, Bank Central Asia, Bank Danamon, Panin, Bank CIMB-Niaga, Bank OCBC Indonesia, Bank Internasional Indonesia and Bank UOB Buana.

Chairman and President of the US Ex-Im Bank, Fred P. Hochberg, through a press statement released by the U.S. Embassy in Jakarta, Friday, announced a new banking facility on Friday at a meeting with Coordinating Minister for Economic Affairs of Indonesia in Jakarta.

"With a diverse economy that continues to grow, Indonesia offers huge opportunities for U.S. exporters in various sectors. This banking facility will allow Indonesian companies to access financing of Ex-Im Bank support from their local banks and help Ex-Im Bank approved the transaction faster," said Hochberg.

RI, Iraq agree to remove trade barriers

The Jakarta Post, Jakarta | Mon, 06/14/2010 10:04 AM

Indonesia and Iraq have agreed to eliminate trade barriers and provide incentives to increase bilateral trade volumes, which suffered a sharp decline last year.

During a meeting in Jakarta last week, the two countries’ senior trade officials agreed to establish a task force in the next three months to identify barriers in bilateral trade and investment.

Indonesian Trade Minister Mari Elka Pangestu said the task force would explore actions and possible incentives to promote the two countries’ trade volume.

Iraq had, for example, offered Indonesian businessmen wider investment opportunities in various sectors — energy and oil and gas, telecommunications, petrochemicals, pharmaceuticals, banking and housing construction projects — as part of a program to promote trade relations.

“Indonesia and Iraq have a lot of business potential that hasn’t been optimally explored,” Mari said at a press conference Saturday, after the sixth session of the Indonesia-Iraq joint commission meeting on economic, scientific and technical cooperation.

The meeting was also attended by acting Iraqi Trade Minister Safaaldeen Mohammed Abdulhakeem Al-Safi.

According to the Indonesian Trade Ministry, bilateral trade between Indonesia and Iraq

dropped significantly to US$41.26 million in 2009 from $265.59 million in 2008.

Mari said the total trade balance during the period of 2005 to 2009 did not reflected the actual potential. “We are quite optimistic that in the next three years, two-way trade can return to the levels recorded in 2008,” she said.

The ministry said Indonesia’s non-oil and gas exports to Iraq, which mainly consisted of milk, soap, cream, margarine, television sets and tires, reached $40.57 million in 2009. Before the US-led invasion in 2003, Indonesia’s exports of tea reached $70 million a year.

As part of the agreement, Mari said Indonesia invited Iraqi businesspeople to participate in the Trade Expo Indonesia in October 13 to 17 this year, while Indonesian investors were invited to join the Baghdad Fair in November.

“The two countries have also agreed to establish a Trading House in Baghdad and the Indonesian-Iraqi Business Council,” Mari said.

Abdulhakeem Al-Safi said his government had invited Indonesian entrepreneurs to take part in the “rebuilding Iraq” program that offered huge opportunities both in infrastructure and construction development projects.

He promised foreign investors, including those from Indonesia, easier procedures to getting business permits. “We also offer a tax holiday and other kinds of tax exemption for foreign investors,” he said.

Abdulhakeem acknowledged that security remained a problem in his country. “But it’s not as bad as what is being published by western media. Our lives are getting back to normal,” he added.

US commerce secretary to visit RI

Antara News, Monday, May 10, 2010 22:37 WIB

Jakarta (ANTARA News) - United States Secretary of Commerce Gary Locke and a select group of US business leaders are scheduled to visit Indonesia May 25-26,

According to a press release received here on Monday, the first cabinet-level trade mission of the Obama Administration`s visit to Indonesia was aimed to deepen the commercial and technology partnerships and exchanges that lead to increased trade and investment in clean energy development.

Building a solid foundation for President Obama`s new National Export Initiative and his commitment to creating substantive partnerships with growing economies such as Indonesia, US Commerce Secretary Locke will engage with Indonesian officials and private sector representatives on advancing bilateral trade and to pave the way for Obama`s upcoming visit to Jakarta that will mark a new chapter for US trade and partnership with Indonesia.

Secretary Locke and his staff will lead select American companies on this clean energy mission to assure them of the deep US commitment from the Obama administration to emerging Asian economies and to ask the host countries to open their doors to reliable US partners who can join them in building jobs, economic growth and a better environment in their respective countries.

The delegation will be in Jakarta where Coordinating Minister of Economy Hatta Rajasa will host the Secretary of Commerce and the business leaders to meet with key Indonesian ministers, legislative leaders and private sector representatives. The group is also expected to see President Susilo Bambang Yudhoyono who is a firm advocate of a clean and secure energy future for Indonesia and a proponent of a meaningful strategic partnership with the US. The group will also be hosted by KADIN, the American Chamber of Commerce and US Ambassador Hume as well as the University of Indonesia.

In speaking about this mission, Secretary Locke said, "America`s economic future will depend on how well it competes to meet the rising global demand for clean energy in the 21st century; the business leaders joining me on this trade mission understand the urgency of that global competition". Locke noted that Indonesia represents a key partner for US companies that is ready to compete in the clean energy and energy efficiency sectors and find mutual benefits in Asia.

The US Ambassador to Indonesia, Cameron Hume, during his presentation at an ASEAN clean energy summit in Manila said last week that Indonesia is to be applauded for its integrity in openly addressing the distortions and losses from subsidies to fossil fuel consumption that divert funds from education, health and defense.

He recognized that Indonesia seeks to balance the social demands for cheap energy with the reality that now they are a net energy importer that like the US they must find the means to efficiently use their rich renewable resources like geothermal, sunshine, geography and their people to embrace cutting edge clean technology tools from the US and locally to achieve a bright future for Indonesians.

Trade directly and indirectly supports millions of jobs globally. Trade and open collaboration in technology transfer, development and use of advanced energy equipment and high level education and skills are an increasingly important part of the knowledge economy and a key component of the Obama Administration`s efforts to create jobs and economic balance in the US and globally.

The administration has stated its commitment to aggressive trade promotion strategies and in March, President Obama issued an executive order creating a new initiative that aims to enhance US trade and international engagement leading to millions of jobs and economic vibrance for the US and its partners.

In addition to Jakarta, the group will visit Hong Kong, Shanghai, and Beijing. The delegation also includes other US economic and trade agencies such as the US Export Import Bank, US Overseas Private Investment Corporation, US Trade Development Agency and US Foreign Commercial Service.

Private firms include Capstone Turbine Corporation, Caterpillar, Echelon Corp., Emerson Electric, General Electric Company, Lockheed Martin Global, Inc., Oshkosh Corporation, Peabody Energy, Pratt & Whitney Power Systems, Inc., and Prime Engineering, Inc.

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President: Follow up education reform with innovation

Talking science

The Jakarta Post, Antara | Mon, 05/10/2010 3:56 PM

Talking science: President Susilo Bambang Yudhoyono (right) welcomes Bruce Alberts, the US special envoy for science and technology, at the State Palace in Jakarta on Monday. The meeting was to discuss possible cooperation between the two countries in science and technology matters. Antara/Widodo S. Jusuf

ADB, FMO of the Netherlands to Share Risk on Trade Finance in Asia

Asian Development Bank

MANILA, PHILIPPINES - The Asian Development Bank (ADB) today signed a risk distribution agreement with the Netherlands Development Finance Company (FMO), which will lead to greater and wider support for trade in ADB's developing member countries.

The risk distribution agreement is part of ADB's $1 billion Trade Finance Facilitation Program (TFFP), which provides loans and guarantees through, and in conjunction with, international banks and ADB's developing member country banks to support international trade transactions.

Read the full news release.

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Primastuti Handayani, The Jakarta Post, Jakarta | Thu, 04/29/2010 9:03 AM

Less than a week before the kickoff of the World Expo Shanghai China (WESC) 2010, the organizers announced tickets for the May 1 opening day were sold out.

Such great enthusiasm reflects the pride of the Chinese government in hosting the event — dubbed the third largest in the world after the Olympic Games and the soccer World Cup. The organizers have issued some tips on the World Expo’s website for would-be visitors, which include finding the entrances and wearing comfortable walking shoes.

For the government of Indonesia, this year’s World Expo is very special. It is the second time Indonesia has had its own pavilion at the event. The first time was in New York in 1964, where Indonesia also participated as an independent country. During the Dutch colonial era, Indonesia, then named the Dutch Indies, took part in the event in Chicago in 1893.

A total of 192 countries and 50 multinational corporations have confirmed their participation at the six-month-long event that will end on Oct. 31. The event is expected to attract 70 million visitors from around the globe, the organizers said on its website en.expo2010.cn.

Indonesia’s Trade Minister Mari Elka Pangestu said recently that the presence of the Indonesia pavilion in the expo “is proof of the efforts to position the country on the world map.

“It will enhance Indonesia’s image as a country possessing rich cultural, natural… resources and a rich civilization,” said Mari, who chairs the Indonesian participation committee.

For Indonesia, this nation branding exercise — the term nation branding was first coined by author and British government adviser Simon Anholt — is to showcase the country’s potential and achievements in economic growth, democracy and politics, as well as culture.

What makes Indonesia’s participation more special is that the year 2010 marks the 60th anniversary of Indonesia-China diplomatic ties. Chinese Prime Minister Wen Jiabao had to cancel his state visit to Jakarta, slated for April 23, following the earthquake in Yushu county that killed over 2,000 people.

At the 5.28-square-kilometer WESC, the Indonesian pavilion will be located in Zone B along with pavilions for Australia, Brunei Darussalam, Cambodia, Singapore, New Zealand, Malaysia, the Philippines and other international organizations, including the United Nations. The 2,400-square-meter pavilion is built on a 4,000-square-meter plot of land.

The Indonesian pavilion carries the theme “Indonesia Biodiver City”, in line with the WESC grand theme “Better City, Better Life”.

To showcase the theme, the pavilion is covered with greenish bamboo stems, some of them growing out

of the ceiling. The use of bamboo reflects the synergy between the traditional and contemporary lifestyle

in Indonesia.

The pavilion’s interior will highlight Indonesia’s diverse culture, influenced by China following the arrival of Admiral Cheng Ho, or Zheng He, of China, in the 1400s, and by Buddhism as represented by the Borobudur temple relief inside the pavilion and others.

The pavilion will include a restaurant serving Indonesian food and a special corner for Komodo dragons where visitors can vote for the beast to be among the world’s New Seven Wonders of Nature.

“Every single aspect of the display [at the pavilion] will reflect our true character as a nation,” Mari said.

The government chose “Indonesia is” as the country’s tagline.

Indrani Buntarian, the communication specialist on Indonesia’s committee, said the tagline was aimed at sending a positive message about Indonesia to the whole world.

“This event is important for Indonesia because it is a place where we can build a ‘conversation’ with other countries,” she said.

Mari said that by promoting Indonesia, foreign investors were expected to invest in Indonesia, and the WESC was tipped to bring a multiplying effect in tourism, trade and investment. The government aims to earn Rp 1 trillion (US$110.8 million) in transactions at the event.

Indonesia’s committee has an agreement with flag carrier Garuda Indonesia to be the expo’s official airline for both Indonesian delegates and the public. Garuda is the only Indonesian airline linking Shanghai with Jakarta.

Garuda Indonesia’s president and CEO Emirsyah Satar expressed hope that the WESC would help raise the number of passengers using its Jakarta-Shanghai service by between 10 and 15 percent, from last year’s 60,000 passengers.