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

Indonesia Geothermal Sector Attracts Panax, Mitsubishi, BP, Chevron

Renewable Energy World, Leslie Blodgett, GEA, October 18, 2012

WASHINGTON, D.C. -- Indonesia has had the lowest volatility in economic growth of any OECD or BRIC economy over the past decade, while its economy in the short term is conjectured at close to 7% growth per year, according to Proactiveinvestors.com.au.

Concurrently, recent efforts by the Indonesian government to attract geothermal companies seem to be having an effect. At a September meeting in Washington DC on Renewable Energy Opportunities in Indonesia, hosted by the US-ASEAN Business Council, speaker Joel Kopp (U.S. Embassy Jakarta) recounted the efforts of Indonesian leaders, who have set a separate feed-in tariff for geothermal at between 10 and 18.5 cents-per-kWh. Also, projects under 10 MW are required to be purchased by state-owned utility Perusahaan Listrik Negara (PLN). Kopp added that PLN has made improvements to their reliability, as well.

Australian Panax Geothermal is making strides in Indonesia. With three key geothermal projects scheduled to begin production in Indonesia over the next three to four years, Kerry Parker, managing director, commented to press on the company’s growth in Indonesia: “Panax has long recognized the investment potential in Indonesia, having launched several projects within the region and with plans to expand on our current interests,” Parker said. Projects for Panax include the recently negotiated power purchase agreements for its Sokoria and Dairi Prime geothermal projects, each with a planned initial capacity to generate 30 MW. Agreements are with Indonesian electricity regulator PT PLN and the Indonesian Government.

One company with increasing interest is Mitsubishi Corporation, which has agreed to acquire 20% shares of Star Energy Geothermal Pte Ltd ("SEGPL"). SEGPL manages operation of the 420-MW Wayang Windu Geothermal Power Project Plant in Java Island, one of the world's largest geothermal resources. This acquisition is the country’s “first entry into the Indonesian power industry and its first operation of a geothermal power plant,” according to the release. Mitsubishi could develop and operate multiple geothermal power plants in Indonesia in the future, including an expansion of Wayang Windu.

Additionally, oil and gas giant BP (UK) could expand its business in Indonesia, it said recently. Energy and Mineral Resources Minister Jero Wacik told The Jakarta Post the government was curious as to whether BP would enter the geothermal energy sector after US-based Chevron “had successfully become the world’s largest geothermal power producer after years of operating in Indonesia.”

Chevron Geothermal’s policy, government and public affairs manager, Ida Bagus Wibatsya was quoted that the development could create healthy competition among geothermal energy developers: “It will be very positive for the development of the geothermal energy industry as well as supporting the government’s programs on renewable energy resources.”

This article was originally published in GEA's Geothermal Energy Weekly and was republished with permission.

A geothermal energy project in Tibet. (Photo/Xinhua)

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"Recalibration of Free Choice"–  Mar 3, 2012 (Kryon Channelling by Lee Caroll) - (Subjects: (Old) Souls, Midpoint on 21-12-2012, Shift of Human Consciousness, Black & White vs. Color, 1 - Spirituality (Religions) shifting, Loose a Pope “soon”, 2 - Humans will change react to drama, 3 - Civilizations/Population on Earth,  4 - Alternate energy sources (Geothermal, Tidal (Paddle wheels), Wind), 5 – Financials Institutes/concepts will change (Integrity – Ethical) , 6 - News/Media/TV to change, 7 – Big Pharmaceutical company will collapse “soon”, (Keep people sick), (Integrity – Ethical)  8 – Wars will be over on Earth, Global Unity, … etc.) - (Text version) 

“…  4 - Energy (again)

The natural resources of the planet are finite and will not support the continuation of what you've been doing. We've been saying this for a decade. Watch for increased science and increased funding for alternate ways of creating electricity (finally). Watch for the very companies who have the most to lose being the ones who fund it. It is the beginning of a full realization that a change of thinking is at hand. You can take things from Gaia that are energy, instead of physical resources. We speak yet again about geothermal, about tidal, about wind. Again, we plead with you not to over-engineer this. For one of the things that Human Beings do in a technological age is to over-engineer simple things. Look at nuclear - the most over-engineered and expensive steam engine in existence!

Your current ideas of capturing energy from tidal and wave motion don't have to be technical marvels. Think paddle wheel on a pier with waves, which will create energy in both directions [waves coming and going] tied to a generator that can power dozens of neighborhoods, not full cities. Think simple and decentralize the idea of utilities. The same goes for wind and geothermal. Think of utilities for groups of homes in a cluster. You won't have a grid failure if there is no grid. This is the way of the future, and you'll be more inclined to have it sooner than later if you do this, and it won't cost as much….”

General Electric, PLN to Build Renewable Energy Plant in Sumba

Jakarta Globe, October 15, 2012

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General Electric and state utility firm Perusahaan Listrik Negara on Monday signed a Letter of Intent to cooperate in the development of a model renewable energy power plant in Sumba, East Nusa Tenggara.

Under the agreement, GE will provide expertise in the construction of a power plant on Sumba that will use Integrated Biomass Gasification technology, according to a GE statement.

The plant, which is expected to produce 1 megawatt of electricity, will use wood chips as fuel.

“PLN is certain that the technology and the experts from GE can play an important role in the development of an electricity plant using biomass in Indonesia,” PLN president director Nur Pamudji said after the signing.

He said success in Sumba would demonstrate the technical and economic feasibility of expanding the nation's electricity grid to isolated regions using biomass fuels and could also become a model for similar power plants elsewhere.

“GE is committed in bringing the latest technology and solutions to help Indonesia overcome its challenges in developing the country,” GE Indonesian CEO Handry Satriago said.

Freeport donates Rp 58b to human rights foundation

Nethy Dharma Somba, The Jakarta Post, Jayapura, Fri, 03/02/2012

American mining giant PT Freeport Indonesia (PT FI) has donated Rp 58 billion (US$6.38 million) to the Timika-based Human Rights and Anti-Violence Foundation (Yahamak) to fund its programs.

Yosepha Alomang
(Kompas.com)

 “The donation will be disbursed in two stages: Rp 27 billion in 2012 and Rp 31 billion in 2013, as stipulated in the Memorandum of Understanding (MoU),” PT FI vice president for social affairs, Demianus Dimara, said after the MoU signing in Jayapura, Papua, on Friday.

Yahamak’s founder, Yosepha Alomang, said the funds would be allocated for education, health and economic programs, as well as to enhance the capacity of the foundation’s management.

 Yahamak was established in 1999 by Yosepha, a human rights defender who received the Yap Thian Hien award in the same year, and the Goldman Prize in 2001.

 Yosepha said that Yahamak was born out of the struggles of local women living in the company’s working area.

 Responding to the numerous shooting incidents, which have recently occurred in the province, Yahamak vice director Arnold Romsumbre demanded the President take the matter seriously and to speedily arrest the perpetrators.

 “When someone is stabbed and killed in an attack with an arrow in Timika, we can easily identify the perpetrator’s clan from the arrow’s characteristics. But we can hardly identify it from a bullet,” Arnold said. (swd)

Boeing Finalizes $22.4b Deal With Lion Air for 230 Planes

Jakarta Globe, Royston Sim - Straits Times Indonesia, February 14, 2012

Boeing announced a $22.4 billion deal with Lion Air on Tuesday afternoon
for 230 airplane orders — the largest deal in its history in terms of dollar value
and total number of airplanes. (Antara Photo/Lucky)  

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Boeing announced a $22.4 billion deal with Lion Air on Tuesday afternoon for 230 airplane orders — the largest deal in its history in terms of dollar value and total number of airplanes.

This deal alone has exceeded the $10 billion of deals signed at the previous Airshow in 2010.

Jakarta-based Lion Air and Boeing finalized an order for 201 737 Maxs and 29 737-900 ERs.

Lion Air will also acquire rights to purchase another 150 airplanes.

The Singapore Airshow runs from Tuesday till Sunday at Changi Exhibition Centre

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Major Gas Reserve Found Off Kalimantan

Jakarta Globe, Ririn Radiawati Kusuma, February 13, 2012

Chevron Indonesia has discovered a pocket of natural gas off the eastern
coast of Kalimantan that could boost the country’s production by more than
10 percent. (AFP Photo)

               

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Chevron Indonesia, an Indonesian unit of US energy giant Chevron, has discovered a pocket of natural gas off the eastern coast of Kalimantan that could boost the country’s production by more than 10 percent.

The company located a gas reserve of 2.3 trillion cubic feet in the Makassar Strait, and total cost to develop the block is estimated at up to $7 billion, the nation’s upstream oil and gas regulator BPMigas said on Monday.

The company is expected to produce 1,000 million standard cubic feet per day (mmscfd) of gas from the block, BPMigas said. Output of 1,000 mmscfd of gas is equal to about 172,000 barrels of oil equivalent per day (boepd). Indonesia’s natural gas production last year was 1.5 million boepd, according to BPMigas.

“We have agreed on the plan of development on those blocks, so we already know the reserve for the first phase of the project,” Gde Pradnyana, a spokesman for BPMigas, said on Monday. The total cost to develop the project is estimated at $4 billion to $7 billion, BPMigas said.

Chevron owns four gas blocks in the Makassar Strait, located between Kalimantan and Sulawesi islands, and continues to explore within those blocks for more gas reserves. It began exploration activities on the blocks in 2008.

Of the four blocks, two of them — the Ganal and Rapak blocks — are jointly owned with ENI, an Italian oil and gas company, in which it owns a 20 percent stake.

Chevron is Indonesia’s largest oil producer, with total daily production averaging 477,000 barrels of liquids and total average daily production of natural gas at 611 mmscfd in 2010, according to the company’s Web site.

Chevron operates in partnership with Indonesia’s government under so-called production-sharing contracts.

Indonesia has been struggling to boost oil production after the country’s crude oil output fell below 1 million bpd in 2007.

Oil companies operating in Indonesia produced about 904,000 bpd last year.

“That’s why we want to change the paradigm from oil to gas,” Gde said.

RI, US agree on $600 mln cooperation project

Antara News, Fri, November 18 2011

US President Barack Obama and Indonesian President Susilo Bambang

 Yudhoyono shaking hands following statements to the press after their

 meeting on the sidelines of the Association of Southeast Asian Nations (Asean)

 and East Asia summits in Nusa Dua on Indonesia’s resort island of Bali on Friday.

(AFP Photo)

 Indonesian President Susilo Bambang Yudhoyono and US President Barack Obama announced the agreement in a joint statement to the press following their bilateral meeting at the Bali Nusa Dua Convention Center (BNDCC).

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Nusa Dua, Bali (ANTARA News) - Indonesia and the United States have agreed on a US$600 million cooperation project under a so-called "Millennium Challenge Corporation Compact" in support of environmentally friendly and sustainable development in the former.

Indonesian President Susilo Bambang Yudhoyono and US President Barack Obama announced the agreement in a joint statement to the press following their bilateral meeting at the Bali Nusa Dua Convention Center (BNDCC) here on Friday.

"Indonesia is thankful to the US for the Millennium Comprehensive Partnership worth US$600 million to support environmentally friendly development," President Yudhoyono said.

The cooperation was designed to assist Indonesia in developing clean energy, food and public health programs as well as in modernizing goods and service procurement process.

President Yudhoyono said the Indonesia-US relations had been improving since the two nations signed a comprehensive partnership agreement a few years ago.

In the political, legal and security fields both nations had been engaged in various activities such as dialogs, military education and training including the US grant of F-16s to Indonesia, he said.

Both nations also had signed a trade and investment agreement to increase investment and trade ties between the two nations, he said.

President Yudhoyono also expressed Indonesia`s wish to become a US strategic partner in building democratic cooperation which pays respect for human rights.

Meanwhile, President Obama said his visit to Bali for the 6th East Asia Summit was a concrete example of the US focus on the Asia-Pacific region to get better involved in the regional organization.

He shared Yudhoyono`s view that relations between the two countries had been improving since the signing of the comprehensive partnership agreement.

He said the signing of a commercial agreement between Boeing and Lion Air at Grand Hyatt Hotel in Bali earlier in the day was an example of the ever increasingly closer cooperation between the two nations in the economic field.

Under the agreement, Lion Air is planning to buy 200 Boeing planes for at least US$2 billion.

Editor: Heru

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Indonesia’s Lion Air to Buy 230 New Boeing 737s in $21.7b Deal

Indonesia’s Lion Air to Buy 230 New Boeing 737s in $21.7b Deal

Jakarta Globe, November 17, 2011

Indonesia’s Lion Air has agreed to buy 230 Boeing 737 aircraft with a
 list price of $21.7 billion, the White House said on Thursday, touting the
sale as the US firm’s biggest-ever commercial order. (Antara Photo/File)   

     

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Nusa Dua. Indonesia’s Lion Air has agreed to buy 230 Boeing 737 aircraft with a list price of $21.7 billion, the White House said on Thursday, touting the sale as the US firm’s biggest-ever commercial order.

The deal was announced soon after President Barack Obama touched down in Bali for the East Asia summit on the final leg of a regional tour partly aimed at drumming up markets for US products at a time of slow growth back home.

The White House also highlighted other deals, some already announced, including the sale of eight Boeing 777 planes to Singapore Airlines and an order for Sikorsky Black Hawk helicopters by Brunei’s Ministry of Defense.

Officials said the Lion Air order was for 201 Boeing 737MAX aircraft and 29 Next Generation 737ER planes.

“The President will join a signing ceremony between the representatives of Boeing and Lion Air on November 18,” a White House statement said.

“With 230 airplanes at a list price of $21.7 billion, this order represents the largest commercial airplane agreement ever for Boeing.”

Aviation Week reported on November 4 that Lion Air, Indonesia’s largest privately-held carrier, was seeking new narrow bodied aircraft and was considering 737s and the European-made Airbus 320.

The White House also said that the deal included options for a further 150 aircraft valued at $14 billion, which could put the eventual deal at $35 billion.

Officials said that the deal would support 110,000 American jobs at Boeing and at suppliers throughout 43 American states, at a time of 9.0 percent unemployment which is clouding Obama’s 2012 reelection prospects.

The White House also highlighted another big Boeing deal, the sale of eight 777-300ER jets to Singapore Airlines worth $2.4 billion which will support a further 11,000 US jobs. That contract had already been made public.

Indonesia’s Garuda Airlines meanwhile has signed a contract to buy 50 CFM56 General Electric engines worth $1.3 billion, the White House said..

And Sikorsky will sell Brunei 12 Blackhawk S-70i helicopters worth $325 million, the White House said, adding that the total value of all the deals was $25 billion.

Agence France-Presse

Indonesia's Lion Air has placed the largest ever commercial airplane
order in Boeing's history, valued at $21.7 billion. (AFP Photo) 

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US, Indonesia announce $28.5 million debt swap for forests

Antara News, Mon, October 3 2011

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Jakarta ( ANTARA News) - The United States and Indonesia on signed a $28.5 million debt-for-nature swap agreement on Monday, the US Embassy here said in its official website on Monday.

The agreement was signed under the U.S. Tropical Forest Conservation Act (TFCA) of 1998 that will reduce Indonesia`s debt payments to the U.S. Government over the next eight years by nearly $28.5 million.

In return, the Government of Indonesia will commit these funds to support grants to protect and restore the country`s tropical forests in Kalimantan. This agreement, in partnership with World Wide Fund for Nature-Indonesia (WWF) and The Nature Conservancy (TNC), will be the second TFCA debt-for-nature swap in Indonesia.

The first agreement was signed in 2009 and supports forest conservation activities on the island of Sumatra.

Both of these agreements contribute to the climate change and environment objectives of the US-Indonesia Comprehensive Partnership.

Kalimantan - Indonesian Borneo - historically has contained some of the world`s most remote and biologically-rich forests. There are presently up to 15,000 different flowering plants on Borneo and the island is home to a large number of treasured animal species such as orangutans, clouded leopards, and "pygmy" elephants.

The second Indonesia TFCA marks the 18th TFCA deal, following agreements with Bangladesh, Belize, Botswana, Brazil, Colombia, Costa Rica (two agreements), El Salvador, Guatemala, Indonesia (now two agreements), Jamaica, Panama (two agreements), Paraguay, Peru (two agreements), and the Philippines.

Editor: Heru

PT KAI receives US grant to upgrade railway signal system

The Jakarta Post, Jakarta, Thu, 09/15/2011

State railway firm PT KAI on Thursday announced that it had received a grant worth Rp 5.2 billion (US$598,000) from the US Trade and Development Agency (USTDA) to be spent on a strategic plan development study to improve its telecommunication and signaling system.

The grant was handed by US Ambassador to Indonesia Scot Marciel to PT KAI chief director Ignasius Johan, in Bandung on Thursday.

The railway signal system, operated by the train travel chief, is a guide for train drivers, telling them when to start trains, when to stop them and when to travel at certain speeds.

PT KAI signals, telecommunication and electricity deputy chief Ira Nevasa said the company hoped the study would result in a safer, more efficient and better quality operating procedure.

Goldman, Morgan in Talks to Buy Indonesian Brokers: Sources

Jakarta Globe, September 12, 2011

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Goldman Sachs and Morgan Stanley are each in talks to buy an Indonesian brokerage firm to expand their reach into the booming capital market of Southeast Asia’s biggest economy, sources said.

Goldman is in talks to buy Tiga Pilar Sekuritas and expects to complete the acquisition before the end of 2011 as it aims to start a local brokerage operation next year, two sources with direct knowledge of the deal told Reuters on Monday.

Goldman does not have an underwriting or broking license in Indonesia, while Morgan Stanley secured an underwriting licence in 2008, but is seeking a bigger presence through a full-fledged broker license.

Both banks plan to add research analysts as well as sales and trading staff to the brokerages next year, while Goldman could also add investment bankers, as they seek to win fees from equity offerings and debt deals, the sources said.

“I think this signals a positive view on our capital market ... It has really become an important destination for global investment banks,” said Winston Sual, who manages nearly $1 billion in funds at Panin Sekuritas in Jakarta.

“This will give more competition for fees among global bankers like JPMorgan and Credit Suisse.”

The banks’ plans in Indonesia, which has seen its stock market hit records this year on surging foreign investment, follow moves by Nomura Holdings and Citigroup to ramp up equity research teams in Jakarta this year to challenge leaders Credit Suisse and Deutsche Bank.

Investment interest in the G20 member is set to rise again next year, when Indonesia hopes to get an upgrade by Fitch Ratings to an investment grade sovereign rating that will put it alongside top emerging BRIC nations such as Brazil. 

Goldman has completed due diligence for Tiga Pilar and both parties are now negotiating the deal structure and valuation, said one of the sources, who all declined to be identified.

“Goldman has already asked Tiga Pilar to start looking for prospective staff and bankers as a precondition before they complete the deal,” said the source. No financial details were immediately available.

Officials at Tiga Pilar and Goldman declined to comment.

The Tiga Pilar deal size is likely to be small as Goldman is only seeking to buy the operating licenses that the deal will provide. It will need to at least inject the Rp 50 billion ($6 million) in license costs and required brokerage capital.

Tiga Pilar, partly owned by the family of Tan Pia Sioe, traded Rp 445 billion by stock value in the first six months of this year, ranking it 102 out of 117 active brokerages, according to stock exchange data.

The IDX composite index has jumped over 5 percent so far this year, topping the list of gainers in Southeast Asia. 

Goldman’s rival Morgan Stanley has also identified a target brokerage firm to acquire and hopes to conduct due diligence this year in order to start operations next year, said three other sources with direct knowledge of this deal.

“Talks are ongoing. It is still early to mid-phase. Morgan Stanley is talking to people,” said one of the sources. Sources declined to give the name of the target brokerage and no financial details were available.

A Morgan Stanley spokesman declined to comment. The talks are aimed at either buying a brokerage to get their seat on the stock exchange or to buy a seat from an existing brokerage, one of the sources said.

A full broking license would allow the firm to cover the secondary side of sales and trading as well as research, the source added.

Citigroup bought Indonesian brokerage Republik last year and this year added bankers and analysts, including veteran analyst Ferry Wong from Macquarie as its new head of research.

Citi was not in the top five for underwriting Indonesian equity deals last year but this year has surged up the league table to rank second among global banks, behind Deutsche.

Reuters

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Freeport familiarizing Jayapura schoolers with environmental awareness

Antara News, Thu, September 8 2011

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Jayapura, Papua (ANTARA News) - PT Freeport Indonesia in cooperation with the Jayapura City administration is conducting a program to familiarize local primary and secondary school students with environment-related subjects under the theme "Towards Environmentally Aware Schools."

The head of the PT Freeport Indonesia representative office, Anthon Raharusun, said here Wednesday the program was a manifestation of the company`s constant attention to the environment and part of its efforts to work in partnership with local stakeholders.

"We have been doing a lot of cooperation with various parties as well as local administrations and private sectors, not only in Papua but also throughout Indonesia, especially in terms of environmental problems. Because PT Freeport Indonesia is concerned about the environment," he said.

He also hoped the cooperation with the Jayapura city administration can be done continuously in the future, not just familiarization for schools but also for regional task force units.

"All parties who wish to conserve the environment can cooperate with Freeport," he said.

The supervisor for environmental awareness and education of PT Freeport, Jimmy Rumainum, said the environmental awareness familiarization program for primary and junior high school students was also aimed at creating an environment-based school (locally named Adiwiyata).

"The activity itself in Jayapura city is still in its early stage but in Mimika district and several other areas in Papua it was in an advanced stage. In fact, in Mimika there is already an Adiwiyata school," he said.

Meanwhile, the vice mayor of Jayapura city, Nur Alam, on behalf of the city administration welcomed the concept of cooperation and initiatives offered by PT Freeport Indonesia.

Moreover, the administration has outlined the Five-Year Development Program (2011-2016) of Jayapura City, among others, the Clean and Beautiful City, and Lighting the City in the night.

"Many things can be supported by PT Freeport as a world class company. We hope the activities that give positive values ​​such as this can become a sustainable program," he said.

The Freeport program is highly synergistic with Jayapura city administration`s work program, so it can join hands to save the environment in Jayapura city area," he added.

Editor: Jafar M Sidik

Pertamina Flags $40b Investment in Riau Gas Project

Jakarta Globe, Ririn Radiawati Kusuma, September 05, 2011

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State oil and gas company Pertamina and its partners expect to spend up to $40 billion to develop a gas block in western Indonesia, a company official said on Monday.

Muhammad Husen, director of upstream business at Pertamina, said the huge cost would include investment for exploration, exploitation and gas transportation system.

“The $40 billion cost is the original budget. It can be increased or reduced,” Husen told reporters on Monday.

The East Natuna block in Riau Islands contains about 200 trillion cubic feet of gas and would be the largest gas reserve in Indonesia, according to US oil giant Exxon Mobil. But only 45 trillion cubic feet can be taken because extracting the remainder, with its high carbon content, would be too costly.

Pertamina will cooperate with three other oil and gas companies: Malaysia’s Petronas Carigali, France Total E&P Indonesie and US ExxonMobil Indonesia.

Divvying up the composition of the stakes in the gas block has not been decided. Husen said last month that the ownership stake is expected to be determined in October and the production-sharing contract will be signed on Oct. 28.

A PSC typically stipulates the sharing of revenue between the companies and the government. It also sets tax incentives, tax obligation and cost recovery.

It was not clear whether this East Natuna gas block would be the biggest investment in Indonesia’s oil and gas history.

The East Natuna gas block will require advanced technology to extract natural gas. Last month, Husen said Pertamina and its partners were confident that they have enough expertise and technology to harvest gas from the block.

Total investment to develop the Masela block in Timor Sea and to build the LNG floating terminal is estimated at $19.7 billion upon completion in 2016.

The cost to develop the East Natuna project may be less than the estimated budget, at about $20 billion, Husen said.

“The $20 billion cost is our calculation for using the gas pipeline to deliver the gas,” Husen said. The cost will rise should the delivery system to channel the gas be processed by the LNG plant, he said, though that may depend on the government’s objective.

The consortium, Husen added, has several possible plans for Natuna, including delivering gas through a pipeline to Sumatra and Java. Some of the gas will be sold to Malaysia, he said.

General Motors to Invest $150m in Indonesia Plant

Jakarta Globe, August 12, 2011

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Detroit. General Motors Co said on Friday it will invest $150 million to reactivate a plant in Indonesia to build a “people mover” van for Southeast Asia.

The No. 1 U.S. automaker said the Bekasi plant in West Java, Indonesia, will begin production of the vehicle in 2013 and build 40,000 of the vans a year, ultimately creating more than 800 jobs.

GM, which said it will add new manufacturing equipment at the plant, did not disclose further details about the vehicle, including its name, design specifications or pricing.

GM said the Indonesia plant will mean an expansion of GM’s dealer network in that country and it will join with its Rayong, Thailand, and Hanoi plants to support growth in the region.

Last year, GM’s sales in Indonesia rose 72 percent to 4,500 vehicles. They were up 18 percent in the first six months of 2011.

Reuters

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GM to Reopen Indonesia Plant, Create 800 Jobs