Sumitomo to build US$38 mln geothermal plant in Indonesia

Tokyo (ANTARA News/Asia Pulse) - Sumitomo Corp. (TSE:8053) has received a 4.5 billion yen (US$38 million) order to construct a geothermal power station for an Indonesian utility.

Slated to start operations in February 2009, the facilities are to output 20,000 kilowatts, enough to supply roughly 10,000 households with power.

The order was placed by PT Perusahaan Listrik Negara, with the facility to be assembled on the northern part of the island of Sulawesi using turbines and generators manufactured by Fuji Electric Systems Co. PT PLN will buy the equipment from Sumitomo using funds borrowed from the Japan Bank for International Cooperation.

Pilot and Demonstration Activities (ADB)

Appropriate Information System for Integrated Water Resources Management: An Exploratory Trial in the Cimanuk River Basin

Asian Development Bank

Any reliable information system provides a clear, concise, and up-to-date data to aid important management decision making tasks. Such a database is lacking in West Java's Cimanuk River Basin. This PDA will establish a Geographic Information System in Cimanuk as an initial step towards integrated water resources management.

Read More ....

Indonesia awards multi-billion dollar energy contracts

Jakarta (ANTARA News) - The Indonesian government on Wednesday awarded 37 energy contracts worth billions of dollars in total, a report said.

The contracts included exploration deals worth 4.1 billion dollars, domestic gas supply agreements worth 1.61 billion dollars and oil and gas sector contracts amounting to 1.39 billion dollars.

There were also 21 electricity supply contracts and amendments to coal deals at the meeting on the main island of Java, the Detikcom news website report said.

The projects are expected to create 26,000 jobs, Detikcom was quoted by AFP as saying.

"From January to March, investment commitments in the energy sector have already reached 19.4 billion dollars," Energy and Mineral Resources Minister Purnomo Yusgiantoroso was quoted as saying at a signing ceremony.

"We are optimistic that by the end of 2007, the investment can rise further and exceed that in previous years," he said.

Separately, President Susilo Bambang Yudhoyono inaugurated four projects by state oil and gas firm Pertaminain.

They included the development of two oil and gas fields, a fossil fuel transit terminal and a fuel depot.

Saratoga to invest in CPO business in Papua and Kalimantan

Jakarta (ANTARA News) - PT. Saratoga Investama Sedaya owned by national businessman Sandiaga S. Uno, is planning to invest in crude palm oil (CPO) business in Papua and Kalimantan.

"We are allocating around 10-20 percent out of our total investment this year (for the CPO business)," Sandiaga said here over the weekend.

The company is also launching a fund raising to collect up to about US$300 million for the purpose.

"We are trying to collect funds from institutional investors as well as pension funds," he said.

Proton plans to open 10 centres in Indonesia

By Zuraimi Abdullah,

The Business Times, March 19 2007

PROTON Holdings Bhd, which officially entered Indonesia last Friday, plans to open up to 10 sales and service centres in the republic by March 2008.

This is to facilitate the national carmaker's target of capturing a 1.7 per cent share of all vehicles sold in the republic in five years, said heads of Proton's Indonesian marketing arm.

Three outlets were opened simultaneously in Slipi, Jalan Warung Buncit and Pokok Indah, all in Jakarta, on Saturday.

PT Proton Edar Indonesia directors Norhisham Kamal and Dwi Sasetia said its other outlets will be located in Samarang, Surabaya, Bali, Makasar, Medan, Jogjakarta and Bandung.

Total cost of setting up the outlets could reach US$8 million (RM28 million), they added.

Norhisham and Dwi spoke to Malaysian reporters before Proton's launch in Indonesia by International Trade and Industry Minister Datuk Seri Rafidah Aziz on Friday in Jakarta.

Proton would directly operate two outlets including the one in Slipi. The balance of eight are to be run by independent dealers.

Savvy and Gen. 2 are the first Proton models being sold in Indonesia as passenger cars from last Saturday, while the Wira model has been on the road here as a taxi since last August.

"We have to change the perception that Proton is only a taxi manufacturer. We need to have strong promotion. We do hope that with the outlets in the main cities, Indonesians will accept Proton's other models too," Dwi said.

Dwi and Norhisham are bullish on Proton's prospects, going by Toyota's success in having its other models well-accepted here despite the Vios being sold as taxis.

Meanwhile, the first Proton car buyer in Indonesia, only known as Fauze, has selected a red Gen. 2.

"This is my third car and I am proud to have a Malaysian car. I thought, 'Why not this time I add an Asian-made car to my collection?" Fauze, in his 40s, added that he fell in love with the Gen. 2 while visiting a motor show in Kuala Lumpur last year.

Central Sulawesi to build two more airports

The Jakarta Post

PALU (Antara): Central Sulawesi provincial administration will soon have two new airports that will be built in the districts of Tojo Una-una and Morowali in the next few years.

"We have proposed the plan to the Directorate of the Air Transportation last year," Head of the local air transportation office Adiyono said on Saturday.

He added his office has conducted a survey to see the location for the airports, namely in the Uedele village in Ampana, Tojo Una-una district and in Umbele village in Morowali district.

"We have also presented the plan to the director general for air transportation," he added.

He hoped the construction would be commenced in 2010. He added that each of the airport would be built on a 100-hectare plot of land and has a 900-length of runway.

Aston, Tauzia hotels plan expansion moves

The Jakarta Post, Jakarta

Hospitality management firm Aston International Indonesia is set to expand with the opening of a new four-star hotel with 50 rooms in Palu, Central Sulawesi, in July.

Still in expansion mode, in December the firm will open another four-star hotel, with 300 rooms, in Denpasar, Bali; a four-star resort and spa with 105 rooms in Ambon, Maluku; and a three-star inn with 100 rooms in Manado, North Sulawesi.

Aston currently manages 10 properties, comprising four four-star hotels and residences, two five-star hotels, one three-star inn and three villas, located in Jakarta, Bali, Bandung and Palembang.

President and CEO of Aston International Indonesia, Charles E. Brookfield, said Wednesday in Jakarta that the company would also open five new properties in Jakarta between 2008 and 2009

The five new hotels are four-star hotels in Mangga Dua (Central Jakarta), Ancol (North Jakarta) and Slipi (West Jakarta), and two-star hotels in Kota (Jakarta's Chinatown) and Gading Serpong (west of Jakarta).

Meanwhile, Tauzia Hotel Management said it also planned to open more hotels under the Harris Hotels and Resorts trademark in a number of major cities around Indonesia.

"We expect to expand Harris Hotels and Resorts to 1,000 rooms by the end of 2007 from the current 800," managing director and founder of Tauzia Hotel Management, Marc Armand Steinmeyer, told reporters here Thursday.

Tauzia, established in 2002, currently manages four properties under the Harris Hotels and Resorts brand: the Harris Resort Batam in Riau Islands province, Harris Hotel Tuban in Bali, Harris Hotel Kuta in Bali, and Harris Hotel Tebet in Jakarta. The firm boasts an average monthly occupancy rate of between 85 and 90 percent.

Tauzia also manages resorts under the Waka International brand in Bali, the Balihai resort and spa in Tuban, Bali, and estate and serviced apartments in Indonesia and Vietnam.

Steinmeyer said Tauzia would open two more apartment projects in Bali by the end of 2007.

Oiltanking to build terminal in Cilegon at cost of $120 million

Ika Krismantari, The Jakarta Post, Jakarta

Responding to the liberalization of the gasoline retailing sector, Oiltanking, the world's second largest independent tank storage provider for petroleum products, gases and chemicals, is planning to build the first independent oil storage terminal in Indonesia at a total cost of US$120 million.

The construction of the terminal, which will be located in Cilegon, Banten, will begin in April, after being delayed for almost a year due to the complexity of the project.

Oiltanking president director Theo Pangraz said Friday in Jakarta that the first phase of the terminal would have a capacity of 280,000 cubic meters (cbm), part of which had already been reserved by market players.

He said he hoped operations could commence in the second half of 2008.

"We are very confident that in a very short time, we will be able to expand the storage facilities," Pangraz said, adding that the company hoped to increase storage capacity to 600,000 cbm in the coming years.

He also said that Oiltanking was considering building storage facilities in East Kalimantan, Sumatra and Kalimantan.

"We have to see what is available, what makes sense, and where storage terminals are needed. We are looking at the whole Indonesia. We will go where our customers need us," Pangraz said.

The need for independent storage facilities is growing following the removal of state-owned oil and gas company Pertamina's monopoly on the distribution of non-subsidized high-octane fuels. Pertamina still retains the exclusive rights over subsidized fuels.

To date, only two foreign gas-station operators have actually set up shop here: Shell Indonesia (the local arm of Royal Dutch Shell Plc.), and Malaysian state oil and gas firm Petroliam Nasional Berhad (Petronas), which have opened a number of gas stations in Greater Jakarta selling high-octane fuels.

U.S.-based energy firm Chevron is currently conducting a feasibility study before deciding on whether to submit an application for a permanent license from the government to enter the retail fuel market.

Meanwhile, Total E&P Indonesie -- the local affiliate of the world's second largest liquefied natural gas producer, Total SA, is in the process of obtaining a license.

Total's corporate communications manager, Ananda Idris, has said that the company plans to build five gas stations this year at a total cost of $5 billion.

Pangraz refused to confirm whether Total and Chevron were among Oiltanking's clients, saying that the company was ready to do business with all industry players.

Oiltanking, a division of Germany's Marquard & Bahls AG, owns and operates 72 terminals in 19 countries in Europe, North and South America, the Middle East and Asia. The group has an overall capacity of 11.9 million cbm.

Mandiri sets aside Rp 11t for plantations

Urip Hudiono, The Jakarta Post, Jakarta

Bank Mandiri will provide up to Rp 11 trillion (US$1.2 billion) in new loans to the small holder plantation sector over the next three years, says a senior Madiri executive.

The loans are intended to finance the development of up to 321,268 hectares of plantations by some 80,000 growers, and will be disbursed in stages between 2007 and 2010, Mandiri's micro and retail banking director, Budi Gunadi Sadikin, said at an agricultural expo Friday.

"The plantations concerned consist of those producing such commodities as palm oil, cocoa and rubber," he said.

The loans to small-scale plantation growers would be channeled through large-scale plantation companies, which would guarantee the loans, and provide advice and guidance to the growers.

Budi said that the new loans would increase the value of Mandiri's total outstanding loans to the plantation sector to Rp 14.39 trillion, consisting of Rp 11.3 trillion to industrial plantation firms and Rp 3.09 trillion to small-scale plantation cooperatives and growers. The bank has also provided Rp 7.14 trillion in loans to associated processing enterprises, he added

Mandiri's outstanding loans to the plantation sector account for 36 percent of the Rp 39.5 trillion in total borrowing by the sector, according to central bank figures.

Mandiri president Agus D. Martowardojo said the additional lending would support the government's program to revitalize the country's agricultural sector, develop the biofuel sector, and grow small and medium enterprises (SMEs).

A consortium of five state and local government banks recently banded together to provide Rp 25.56 trillion in loans for the development of the plantation sector, including plantations producing biofuel feedstock.

Besides Mandiri, which will provide Rp 11.08 trillion of the Rp 25.56 trillion, Bank Rakyat Indonesia (BRI) will stump up Rp 12 trillion, Bank Bukopin Rp 1 trillion, the West Sumatra provincial bank Rp 980 billion, and the North Sumatra provincial bank Rp 500 billion.

Indonesia is the world's largest palm oil producer. Palm oil, along with jatropha oil, can be processed into biodiesel, and is also used in the production of cooking oil, soap and detergent.

The country also has vast tracts of rubber plantations, most of which are owned and managed by small farmers or cooperatives operating as SMEs.

Palm oil and rubber, whose production and prices grew strongly last year, provided the backbone for Indonesia's strong 2006 export performance, bringing in more than $100 billion in foreign exchange earnings.

Agus said he expected the increased lending to the plantation sector to help Mandiri achieve its 20 percent lending growth target for this year.

Mandiri, Indonesia's largest lender by assets, saw lending grow by 10 percent to Rp 117.7 trillion last year.

13 foreign firms to invest $120.5m in fishing sector

Abdul Khalik, The Jakarta Post, Jakarta

A total of 13 overseas companies from China, Thailand and Australia are to invest a total of US$120.5 million in fishing and fish processing ventures around the country, an official from the Maritime Affairs and Fisheries Ministry says.

"The planned investments comprise fishing operations and the building of fish processing plants in Indonesia as under our current regulations, if they want to fish in our waters, they have to process the fish here," ministry spokesman Saut P. Hutagalung told reporters Friday.

He said that four of the 30 companies had already obtained permits and commenced fishing, with their catches being processed in collaboration with domestic processing firms.

Saud said that the companies would be permitted to use existing processing facilities prior to the construction of their own plants.

The companies have selected Jambi, East Java, Jakarta, Merauke in Papua, and Ambon in Maluku as their processing bases.

Last year, the government issued a decree requiring foreign fishing firms to establish fish processing plants if they wanted to fish in Indonesian waters.

The rule was introduced in light of the fact that most of the fish caught by foreign vessels here in the past ended up being processed abroad, with the state only receiving US$48 per ton of fish caught.

Saut said that besides the overseas investors, 15 local firms had committed themselves to investing around Rp 1.4 billion, with most of them still waiting for the necessary permits.

"However, three companies have already obtained permits, and will begin operations soon,' he added.

Saut said that the ministry believed that the combined investments would provide jobs for some 23,000 local people.

"This is a direct result of the new regulations. And we believe more investment is on the way," he said.

Saud stressed that the fishing licenses of Chinese firms that had been granted under the old rules would not be renewed.

"The licenses for Thailand and the Philippines expired last year while those for China will do so in July. We will not renew these licenses. Instead, they will have to comply with the new arrangements if they wish to fish in Indonesia waters," he explained.

Inco plans to invest $1 billion to build two nickel plants

Ika Krismantari, The Jakarta Post, Jakarta

PT International Nickel Indonesia (Inco), the country's biggest nickel miner, said Wednesday it would build two new nickel plants by 2010 at a total cost of US$1 billion.

President director Arif S. Siregar said the two plants would be built at the company's mines in Bahodopi, Central Sulawesi, and Pomalaa, Southeast Sulawesi.

However, the company would first prioritize the construction of the Bahodopi plant, Arif said. As for the Pomalaa plant, PT Aneka Tambang has already built two ferronickel smelters to which Inco must supply about one million pounds of ore per year.

"We are still conducting the feasibility studies on the two plants," Arif said, while declining to give details on their production capacities.

Inco also plans to build a third hydroelectric power plant in Karebbe, South Sulawesi, so as to boost its annual production capacity to 200 million pounds of nickel in matte by 2010 from 157.9 million pounds in 2006.

The power plant, which will be built on the Larona river at a cost of between $275 million and $280 million is expected to increase existing power-generating capacity by 33 percent to 90 megawatts (MW) annually.

Currently, Inco operates the 165-MW Larona and the 110-MW Balambano hydro plants to power its nickel plant in Soroako, South Sulawesi.

This year, Inco hopes to produce between 155 and 165 million pounds of nickel in matte.

In its latest unaudited report, Inco booked a 154.8 percent increase in 2006 fourth quarter sales to $589.6 million from $231.4 million in the same period of the previous year. Its net profit jumped significantly by 368.3 percent to $265.5 million in the fourth quarter of 2006, or $0.27 U.S. cents per share, from $56.7 million, or 0.06 U.S. cents per share, in the same quarter of 2005.

Over the entire year, Inco's sales increased by 51.1 percent to $1.33 billion from $885.1 million in 2005, making its net profit soar by 97.1 percent to $513.4 million, or 0.52 U.S. cents per share, from 2005's net profit of $267.8 million, or 0.27 U.S. cents per share.

Iranian investor to enter W. Java`s carpet industry

Bandung, West Java (ANTARA News) - Some Iranian business people were interested to invest their capital in a number of silk carpet companies in West Java in a hope the product would be one of the province`s prime export commodities.

"A number of local silk carpet businesspersons have explored the possibility, and some of them have even established cooperation," Chairman of the Indonesian Chamber of Commerce and Industry (Kadin)`s West Java chapter, Iwan Dermawan Hanafie, said here Thursday.

In addition to capital investment, the cooperation in the development of silk carpet industry also dealt with the supplies of raw materials and production machines besides helping market the commodity to other countries, Iwan said.

Iran is a noted producer of silk carpet whose quality is already recognized worldwide, while West Java has potential silk carpet companies, he said.

"Besides getting capital assistance and better production machines, West Java`s businesspeople will also get a wider market access to promote and market their products. Those are benefits in the long term," he said.

Several silk carpet companies in West Java are located in Bandung (West Java province`s capital) and Cimahi district.

Iwan was optimistic that the cooperation in the silk carpet industry with Iran would give positive impacts and boost the carpet industry in West Java.

"The cooperation is likely to market West Java`s carpet products to Iran and the Middle East while Iran`s carpet products will be marketed in West Java. In terms of quality, West Java`s carpet products are competitive," he said.

Outrigger plans to manage Bali resort condominium development

Mar 14, 2007

H&MM Week In Review

HONOLULU, HAWAII - Outrigger Enterprises Group announced today that it plans to manage a brand-new luxury resort condominium property in Bali, to be called the Outrigger Panorama Bali Resort & Spa, which is being developed by the Balinese development company mc2, a local development company known for their outstanding record in developing luxury projects in Bali. Outrigger also plans to own 35 of the 170 planned resort condominium units. The new resort is Outrigger's second project in Bali; Outrigger also plans to manage the Outrigger O-CE-N Resort in Legian, Bali, which is slated to open in mid-2007.

The new Outrigger Panorama Bali Resort & Spa will be located on the Bukit Peninsula along the southern tip of Bali which is known for its year-round sun. Set amidst a dense rain forest, the Outrigger Panorama Bali Resort & Spa will occupy a prime location on an expansive clifftop offering stunning views overlooking the Indian Ocean from every direction. Neighboring properties include some of the island's most prestigious resorts, including the newly opened Bvlgari Resort and other resorts operated by Alila, Angsana and Banyan Tree, with the luxury resort area of Nusa Dua for shopping and sports just a short ride away.

"We are thrilled to have an opportunity like this to manage a first-class luxury resort in a place like Bali," said David Carey, President and CEO of Outrigger Enterprises Group. "We look forward to working with mc2 to make the new Outrigger Panorama Bali Resort & Spa one of the island's favorite destinations."

Grant McArthur, Managing Director of mc2, commented, "Bali is enjoying a period of healthy investment, with the island maturing into a true luxury destination. Much of this development is concentrated on the Bukit Peninsula, which is destined to become one of the world's most exclusive playgrounds. Our partnership with Outrigger will bring this great Hawaiian brand to the area and we have high ambitions for the resort."

Plans for the US$45 million resort include 170 studio, one-, two- and three-bedroom luxury resort condominium apartments. All units will have balconies, some as large as 1,000 square feet, each offering spectacular ocean views. Additionally, every condominium unit will come with a fully equipped kitchen, stylish bathrooms and state-of-the-art video and audio equipment. Planned for the common areas of the Outrigger Panorama Bali Resort & Spa are two restaurants, a spa, fitness center, retail shops, mini water park, jungle discovery center and children's playground facilities. The architectural style will be tropical and inspired by the clear blue waters of the nearby ocean, with light and airy interiors. Construction is scheduled to begin in the first half of 2007, with completion in the first quarter of 2009.

The Hong Kong based firm of Original Vision has been appointed as architects, and according to Managing Director Adrian McCarroll, "The site for this project is breathtaking, with vast ocean views from every quarter. These views inspired us to create spacious apartments with generous balconies, so that residents have the best opportunity to enjoy the unique ambience."

Top resort interior designers, Plum, are also on board, and Principal Lisa Garriss added, "Outrigger resorts are noted for their carefully developed sense of place. We will be focused on bringing the beauty of Bali into the resort so that guests will feel genuinely immersed in the magical culture of the island."

mc2 plans to commence sales of the resort condominium units to the general public later this year.

Bali's Tourism Industry

Bali is a Hindu enclave located in the heart of Indonesia. The island is one of the most popular tourist destinations within Southeast Asia and is famous for its friendly residents, dramatic scenery and varied culture. Weather in Bali is calm and idyllic year-round and the region boasts many natural as well as man-made attractions including long stretches of sandy beaches, excellent diving, world-class surfing, fishing and some of Asia's best golf courses.

Bali is consistently voted the world's favourite island destination in the prestigious Travel + Leisure annual survey and already features three of the world's top 10 luxury resorts. Six of the world's top 10 airlines fly daily to the island.

NOTE TO MEDIA: A digital rendering of the planned Outrigger Panorama Bali Resort & Spa is available by emailing nancy.daniels@outrigger.com.

MEDIA CONTACT: Nancy Daniels, APR/ Public Relations Manager/ Outrigger Enterprises Group/ 2375 Kuhio Avenue/ Honolulu HI 96815-2992/ PH 808-921-6839/ FX 808-921-6901/ EM nancy.daniels@outrigger.com/ www.outrigger.com / www.ohanahotels.com / www.embassysuiteswaikiki.com

About Outrigger Enterprises Group

Outrigger Enterprises Group is one of the largest and fastest-growing hospitality services companies in the Asia-Pacific region. Outrigger is a family-owned company with 60 years of hospitality experience and runs a highly-successful, multi-branded line of hotels, condominiums and vacation resort properties, including Outrigger Hotels & Resorts, OHANA Hotels & Resorts, Outrigger Condominium Collection, Outrigger Resort Club by Fairfield and Embassy Suites(r)-Waikiki Beach Walk(tm).*. Outrigger Enterprises Group also operates and develops hotel properties and hospitality-related retail and real estate opportunities for partners in Hawaii, the Pacific, the mainland USA and Asia. For on-line information, log on at www.outriggerenterprisesgroup.com and www.outrigger.com.

*Embassy Suites is a registered trade mark of Hilton Hotels Corporation.

About mc2 Tropical Property

mc2 is a resort developer specializing in upscale condominium properties in Asian destinations. Headquartered in Bali, Indonesia, with corporate offices in Hong Kong, mc2 is a privately-owned company with over 25 years development experience. mc2 has a track record of successful resort delivery, including the boutique Alu Bali and Sesari Bali properties in Bali's uber-chic Oberoi district. mc2 is strategically partnered with AAA Venture Fund. For on-line information visit www.mc2property.com, www.panoramaresortbali.com and www.aaagroupltd.com .

PGN directors, commissioner fined total of Rp 5 billion

Andi Haswidi, The Jakarta Post, Jakarta

Following the sanctions imposed on PT Perusahaan Gas Negara (PGN) last month, the Capital Market Supervisory Agency (Bapepam) handed total fines worth Rp 5 billion (some US$545,000) to four PGN directors and a commissioner Tuesday for breach of the duty to disclose information to the public.

Bapepam found the directors guilty of delaying for 35 days the disclosure of essential information on problems with a pipeline project, said a Bapepam press statement.

Bapepam chairman Fuad Rahmany said in the statement that there had also been a misleading report on a plan to transmit gas through the South Sumatra-West Java pipeline (SSWJ), which the directors should have noticed.

Accordingly, Bapepam ordered PGN to pay an additional Rp 35 million. Four PGN directors -- including president director Sutikno -- and a commissioner were also ordered to pay total fines worth Rp 5 billion.

Besides president director Sutikno, those sanctioned were directors Adil Abas, Djoko Pramono and Nursubagjo Prijono, and commissioner W.M.P Simanjuntak.

Last month, the company was also found guilty of an administrative violation related to the SSWJ disclosure breach, and was fined Rp 500 million.

Fuad said that the sanctions were designed to send a message to other senior corporate executives to be more responsible in disclosing information to the public, given the effect that this could have on share prices.

According to the capital market regulations, a public company has to report any occurrence that could affect the price of the company's shares to the capital market regulator no later than two working days after it takes place.

The investigation into PGN was launched after its shares slumped by 23.3 percent from Rp 9,650 to Rp 7,400 on Jan. 12 following an admission by PGN that its SSWJ pipeline project would be delayed.

The admission not only knocked PGN's shares for six, but also affected the shares of other state-owned firms, which in turn precipitated a sharp drop in the Jakarta Stock Exchange (JSX) Composite Index.

The widespread belief that PGN management had deliberately failed to report the delay to the public turned out to be true. The Bapepam investigating committee concluded that PGN executives had been aware of the possibility of a delay since Jan. 3.

Fuad said that the investigation was still continuing, adding that there may have been people inside PGN who unlawfully provided information to traders, thereby leading to insider trading.

After nearly four months of delay, PGN finally launched its $1.1 billion pipeline linking Sumatra and Java last Sunday.

During the initial stages, the pipeline is expected to supply 30 million cubic feet per day from a Pertamina gas field in Pagardewa, South Sumatra, to industrial areas in Cilegon, West Java.

One of the biggest customers for the gas will be the power plant owned by the country's largest steelmaker, PT Krakatau Steel, in Cilegon.

A second PGN pipeline is also being built to supply gas from the ConocoPhillips gas field in Grissik, South Sumatra, through Pagardewa and Labuhan Meringgai to Muara Bekasi and Ra Maju in Bekasi, West Java.

Antam, partners form joint venture company

Jakarta (ANTARA News) - Publicly-listed mining firm PT Antam Tbk said it has formed a joint venture company to study the feasibility of building a chemical grade alumina plant at Tayan, West Kalimantan.

The formation of the joint venture company follows the signing of the joint venture agreement of the Tayan project in March 2006, the company said in an e-mailed statement on Tuesday.

The formation of the joint venture company, called PT Indonesia Chemical Alumina (ICA), was marked by the signing of the articles of association by senior executives of Antam and its international partners, Showa Denko KK (SDK) of Japan, Straits Trading Amalgamated Resources Private Limited of Singapore (STAR), and Marubeni Corporation of Japan on February 26th, 2007 at Antam Head Office in Jakarta.

Following this, the parties will move into finalization of loan documents, all ancillary agreement, the selection of Engineering, Procurement and Construction (EPC) contractor and updating the 2003 bankable feasibility study.

Based on the 2003 Bankable Feasibility Study (BFS) completed for Antam by Mizuho, the Tayan project will produce 300,000 tons of chemical grade alumina per year. These figures are not final and are subject to revision during the updating of the feasibility study. The project is likely to be funded 35% equity and 65% through debt.

Antam`s share in this project is 49 percent with the other three partners owning the remaining 51 percent which consist of SDK 30 percent, STAR 15 percent and Marubeni 6 percent. However, Antam has an option to increase its ownership to 51 percent in the future.

Antam expects construction to begin in late 2007 and commercial operations in 2010 to process the vast, high quality bauxite reserves into chemical grade alumina, for sales under offtake agreement to Japan and other countries including current SDK chemical grade alumina customers and also to local sales within Indonesia.

Three Foreign Companies to Join Tender of PLN Fuel Supply

Tuesday, 13 March, 2007 | 12:10 WIB

TEMPO Interactive, Jakarta: The tender of fuel supply for PT PLN (Persero), the state electricity company, will be bolstered by three foreign companies: PT Sigma Rancang Bangun Persada (Gulf Resources), PT Petronas Wira Niaga Usaha Indonesia (Petronas' business unit) and PT Krida Petra Griya (Shell's business unit).

The three companies will compete with PT Elnusa Petrofin —Pertamina's subsidary— PT Aneka Kimia Raya, and 20 other national companies to be the supplier of the electricity company.

According to the Deputy Head of Fuel Supply of PLN Widayanto, of 46 companies there are only 25 that have handed over pre-qualification documents on the last day of document delivery. Afterwards, according to him, the 25 remaining companies will be evaluated to decide three winners. “We need three weeks,” he told reporters yesterday (03/12) in Jakarta.

Widayanto said that the pre-qualification winners will be announced around mid April. Minimally, three companies must pass the phase. Should the amount be less than three companies, “The pre-qualification process will be started again.” After the pre-qualification phase, there will be a phase for handing over tender documents (price offering).

Furthermore, he stated that there are five locations of electricity generators in Java whose fuel supply will be put on tender: Gas- and Steam-Based Electric Generating Plant (PLTGU) Grati, PLTGU Gresik, PLTGU Muara Tawar, PLTGU Muara Karang and PLTGU Tambak Lorok. “Outer Java is not yet planned. It will perhaps be considered later,” he said.

Nieke Indrietta

Medco to Build Three Ethanol Factories

Tuesday, 13 March, 2007 | 15:00 WIB

TEMPO Interactive, Depok: PT Medco Internasional is planning to build at least three ethanol companies—a material to be mixed with gasoline—within the next two years valued at hundreds of millions of dollars.

Assistant of Medco Energy's CEO Erwin Susanto Sadirsan said that the development is aimed at entering the ethanol market which is still offering great chances.

“Out of the amount, one ethanol company has been established with its processing factory located at Kota Bumi, South Sumatera,” Erwin told Tempo during the break of the Petrogas event at the Faculty of Engineering at the University of Indonesia, Depok, Saturday (03/10).

Erwin explained that the Kota Bumi factory cost US$46 million with a capacity of 60 million liters per year. Should it be multiplied, three new factories will need minimally US$140 million.

“Perhaps the capacity of the new factories will be higher so that it will increase investment,” he said.

Erwin said that for the time being, the needs for ethanol in Indonesia are considerable, in addition to the government's campaign of using biofuel. Medco, according to him, is planning to utilize the products for supplying the needs.

In addition to meet domestic demand, ethanol, starting to be produced in December, is projected for overseas markets. “It also has a high price abroad,” he said.

BUDIRIZA | MUCHTAR WIJAYA (PDAT)

Indonesia`s Sumi Asih to export biodiesel to U.S

Jakarta (ANTARA News/Asia Pulse) - PT Sumi Asih Oleo Chemical said it hopes to export 100,000 tons of biodiesel a year to the United States starting next month.

Company President Alexius Darmadi said his company has signed a sales contract with a buyer in Houston. Darmadi said Sumi Asih started producing biodiesel only in March last year with a monthly capacity of 3,000 tons using crude palm oil feedstock produced by the company.

He said the company is building a new production facility with a monthly production capacity of 5,200 tons, bringing its total capacity to 8,200 tons a month or 100,000 tons a year.

PLN seeks Kalimantan hydro plant partners

The Jakarta Post, Jakarta

State-owned power firm PT Perusahaan Listrik Negara (PLN) is seeking a partnership with private investors to build a 250-megawatt (MW) hydro power plant in South Kalimantan.

"We are trying to figure out what kind of financial options are suitable for this project," PLN business unit oversight and civil engineering head Kabul Sutijono Sugeng told The Jakarta Post.

He said investment required for the project is expected to reach US$250 million and was confident the project would attract foreign and domestic investors.

PLN is embarking on developing hydro-generated power plants to reduce its dependence on more expensive fuel-fired plants.

On March 21 the company will sign seven power purchase agreements with seven local firms in relation to the development of seven mini hydro power projects in North Sumatra, Bengkulu, Jambi and Sulawesi with a total investment of US$98,000.

Last week the company also signed a power purchase agreement with Norwegian energy firm KF Gruppen for a 10-MW hydro power plant in South Sulawesi.

KF Gruppen is also planning to build a 133-MW hydro power plant in the same location with an investment of approximately US$300 million during the next three years.

According to PLN data, Indonesia has the potential to generate up to 75,000 MW of power, far higher than the 3,200 MW it already produces.

Indonesia to rehabilitate Soeharto`s peatland project

Jakarta (ANTARA News) - The Indonesian government is planning to rehabilitate a sprawling peatland in Central Kalimantan which was converted to agriculture during the reign of former president Suharto causing widespread environmental damage, an official said Sunday.

"We have approval, in principle, from the president to rehabilitate the 'One Million Hectare Peatland' but we still are awaiting the necessary presidential decree to start," Central Kalimantan governor Agustin Teras Narang told AFP.

He said the gradual rehabilitation of some 1.3 million hectares of peatland -- cleared as part of the Mega Rice Project launched by Suharto in 1995 to turn the peat bog into a rice-producing area -- will take three years and cost about nine trillion rupiah (983.6 million dollars.)

"The One Million Hectare Peatland Project had devastating consequences for the environment, and some of the most serious fires last year were in the peatland area," Narang said.

He was referring annual land-clearing fires for the new planting seasons started by small- and large-scale farmers and plantations.

The peat, which can reach several metres deep, as well as coal layers are difficult to extinguish and can burn for years under the surface.

The One Million Hectare Peatland Project, launched in 1995, cleared thousands of hectares of peat swamp and forests before it was brought to an early close in 1998, following a series of difficulties.

The acidic, nutrient-deficient peat soils failed to produce rice as planned.

The clearing of the peatland and the building of irrigation channels criss-crossing the area, also partially dried the peat and made the land more susceptible to fires.

Narang said the rehabilitation program aimed to return the peatland "to its initial function," and turn it into a conservation area, while maintaining part of the area for agriculture.

Delayed Sumatra-West Java gas pipeline comes onstream

Ika Krismantari, The Jakarta Post, Palembang

After nearly four months of delay, state-owned gas distributor PT Perusahaan Gas Negara's (PGN) US$1.1 billion pipeline linking South Sumatra and West Java finally came onstream Sunday.

The pipeline will initially deliver 30 million cubic feet per day from a Pertamina gas field in Pagardewa, South Sumatra, to industrial areas in Cilegon, West Java.

"We will gradually increase the gas distribution to about 250 million cubic feet per day in 2008," PGN president director Sutikno said during a ceremony to inaugurate the operation of the South Sumatra and West Java (SSWJ) gas pipeline.

State Minister for State-owned Enterprises Sugiharto and Energy and Mineral Resources Minister Purnomo Yusgiantoro also attended the ceremony.

The 375-kilometer pipeline is the first part of the company's 1,101-kilometer gas pipeline network connecting South Sumatra and West Java.

The second and final pipeline in the network is still being completed and will distribute gas from ConocoPhillips's gas field in Grissik, South Sumatra through Pagardewa and Labuhan Meringgai to Muara Bekasi and Rawa Maju in Bekasi, West Java. The pipeline is expected to go on stream in the fourth quarter of this year and will distribute up to 400 million cubic feet per day.

PGN's shares slumped by more than 20 percent from Rp 9,650 ($1.06) on Jan. 12 after PGN unveiled that the SSWJ gas pipeline project would be delayed.

Sutikno estimated that the company's soon to be announced 2006 profit will reach Rp 2 trillion (about $222 million), exceeding the government's target of Rp 1.89 trillion.

In 2005, PGN's total revenue rose by 22 percent from Rp 4.4 trillion in 2004 to Rp 5.4 trillion in 2005. Its operating profit over that period rose by 82 percent to Rp 862 billion.

With the operation of the new pipelines, the company expects its gas distribution volume to increase from 338 million cubic feet per day last year to 555 million cubic feet per day this year.By 2008, gas volume is expected to reach 919 million cubic feet per day.

Under the existing contracts, PGN will distribute a total of 3.3 trillion cubic feet of gas for 12 years from Pertamina's Pagardewa field and for 17 years from ConocoPhillips' Grissik field.

Starting this March, a power plant owned by Indonesia's biggest steelmaker PT Krakatau Steel in Cilegon will start receiving 30 million cubic feet per day from the pipeline. The volume will be increased to 40 million cubic feet per day in May. PGN is also planning to build 509-kilometer pipeline from Duri, Riau to Medan, North Sumatra with an initial capacity of 350 cubic feet per day. The construction of the project requires approximately $537 in investment.

BNI, BRI to provide Rp 1.38t for tollway

The Jakarta Post, Jakarta

State-owned Bank Negara Indonesia (BNI) and Bank Rakyat Indonesia (BRI) have signed a loan syndication agreement to partly finance the construction of a 35-kilometer tollway in Java.

Under the agreement, which was signed Friday in Jakarta, the two banks will provide a loan of Rp 1.38 trillion (US$151.65 million) to tollway operator PT Semesta Marga Raya.

"The loan, which is for the construction of a tollway between Kanci in Cirebon, West Java, and Penjagan in Brebes, Central Java, will have a 10-year maturity," BNI president director Sigit Pramono said as quoted by Antara after the signing of the loan facility.

BNI, as the syndicate leader, would provide Rp 897.6 billion, or 65 percent, of the total loan, and BRI the remaining Rp 483.3 billion, or 35 percent, he explained.

The tollway project is part of the government's program to accelerate infrastructural development.

The government had earlier announced an ambitious plan to construct a 1,000-kilometer tolled expressway along the north coast of Java within three years.

The Public Works Ministry and local administrations have already procured the land for the construction of the Kanci-Penjagan tollway.

Semesta, which will construct the Kanci-Penjagan scheme, is 35 percent owned by PT Bakrie Investindo, 25 percent by PT Satria Citra Perkasa, 25 percent by Transglobal Finance Ltd. and 15 percent by Pan Galactic Investment Ltd.

Four Chinese companies to sign power contracts

Ika Krismantari, The Jakarta Post, Jakarta

After a delay of almost two months, four Chinese companies have finally received the green light from state-owned power utility PT Perusahaan Listrik Negara (PLN) to go ahead with their coal-fired power plant projects.

"The contracts will be signed Monday after having been delayed for almost 2 months," PLN director of power plants and primary energy Ali Herman said Friday in Jakarta.

Herman said that the contracts could be signed after the companies met all the requirements set by PLN's bidding committee.

The four projects are the new 600-megawatt (MW) Paiton power plant in East Java, the new 600-MW Suralaya plant in Banten, the 300-MW Labuan plant in Banten and the 300-MW Indramayu plant in West Java.

The companies that will sign the contracts are Harbin Power, the winner of the tender for the new Paiton power plant, China National Technical Import & Export Corp. (CNTIC), which won the contract for the new Suralaya plant, Chenda Engineering Corporation and its partner PT Truba Jurong Engineering for the Labuan plant, and a consortium of China National Machinery Industry Corporation (Sinomach), China National Electronics Equipment Company (CNEEC) and PT Penta Adi Samudera for the Indramayu power plant.

The power plants are being built as part of the government's fast-track program to provide additional power supply of about 10,000 MW by 2009.

Herman said that the signing of the contracts for the four power plants, which was originally supposed to have taken place in January, had been delayed because the developers failed to submit guarantees that the financing of the projects would be secured on schedule.

The signing of the contracts for two other coal-fired power plants, the Awar Awar plant in East Java and the Rembang plant in Central Java, each with a capacity of 300 MW, has also been delayed for similar reasons.

"For the Awar Awar and Rembang power plants, we have to wait for the investors to complete some of their documents before signing the contracts," Herman said.

Herman said that a number of other projects would be retendered on March 20 after the first tenders failed to attract qualified bidders.

The projects to be retendered include the 600-MW Tanjung Jati coal-fired power plant in Central Java, the 300-MW Teluk Naga plant in Banten, the 300-MW Pelabuhan Ratu plant in West Java and the 300-MW Pacitan plant in East Java.

As part of the fast-track program, Herman said, PLN would also open the tenders for the construction of 30 power plants outside Java and Bali.

Under the program, PLN will provide additional power supply of 6,900 MW for Java and Bali, and 3,100 MW for areas outside Java and Bali.

Pamulang Square construction halted

The Jakarta Post

TANGERANG: The Tangerang regency administration has halted the construction of a lakeside shopping mall in Pamulang.

"We have told developer PT Indoland Perkasa to call off the project," Mursan Sobari, the head of the development unit at the regency's building and resettlement agency, told The Jakarta Post on Friday.

He said the order was given during a meeting with company executives and the public order agency earlier in the day.

The public order agency has given the developer a month to demolish the structure.

The administration earlier issued an ordinance on lake and river management, which prohibited the construction of any building within 50 meters of a river or lakes.

The new shopping center is only about 30 meters away from Cileduk Lake.

"The developers promised to reevaluate the project," Mursan said.

Representatives of the company who attended the meeting declined to comment to the media. -- JP

ENRG Partners two Japan firms in Kangean Block

Jakarta (ANTARA News) - Indonesia`s private oil and gas firm PT Energi Mega Persada (ENRG) has signed a binding final agreement with Mitsubishi Corporation and Japan Petroleum Exploration Co. Ltd (Japex), an official said.

The move was made by issuing share of ENRG`s subsidiary namely Energi Mega Pratama Inc (EMPI) last March 6, ENRG director Faiz Shahab told the Jakarta Stock Exchange (BEJ) here Friday.

The issuance of the EMPI shares is a follow-up to Head of Agreement (HoA) which was signed last week, he said.

The binding final agreement specifies that Mitsubishi and Japex will control 50 percent working contract in Kangean PSC block cumulatively and finance parts of major projects at Kangean block.

"The transaction will generate fund totaling US$360 million in the form of the issuance of EMPI new shares. The transaction which involves the taking over of EMPI new shares issued by Mitsubishi and Japex will reduce ENRG ownership in EMPI to 50 percent," he said.

The transaction, Faiz said is a material one which must be approved by the majority of ENGR shareholders who will hold a shareholders` meeting next April.

The transaction reflects ENRG strategy which is focusing on vital growth, gas commercialization and operational superiority which can give a special value to shareholders, he said.

Late February Kangean PSC produced 39 MMscfd gas, 250 barrels of condensate and 3800 barrels of oil per day.

Other ENRG oil field in Sepanjang block produced 66,000 barrels of oils early this month.

Medco to develop four new gas wells in Tarakan

Tarakan, East Kalimantan (ANTARA News) - PT. Medco Oil & Gas (Persero) company will develop four new gas wells to anticipate a decrease in natural gas reserves in Tarakan, East Kalimantan province, a company executive said.

The new wells were located not far from the company`s existing seven gas wells in the Karungan region, Medco`s Tarakan Operations Manager Herman Fauzi said here on Friday.

"One gas well at a depth of 2,425 meters is estimated to produce 7 MMSCF (million metric standard cubic feet) of gas daily," he said.

The gas production of the seven existing wells had decreased by natural casues from 20 MMSCF to 11 MMSCF, he said.

PT Medco Oil and Gas company has been supplying gas to the State Electricity Company (PLN) in Tarakan and to its subsidiary company engaged in methanol production in Bunyu.

The Medco gas supply to PLN in 2007 was targeted to reach around 2.690 to 3.776 MMBTU (Million Metric British Thermal Unit) daily and to the methanol factory 14 MMBTU per day.

The gas production decrease had forced the methanol factory to cease its operations over the past one month, Herman Fauzi said.

Norwegian firm to invest $300m in hydro projects

The Jakarta Post, Jakarta

A Norwegian energy firm, KF Gruppen (KFG), plans to invest US$300 million on the building of two hydro power plants in South Sulawesi over the next three years. The two plants will have a total capacity of 133 megawatts.

KFG president director Knut Fossum said Thursday that the company would sign a memorandum of understanding for the projects with state-owned electricity firm PT Perusahaan Listrik Negara (PLN) on March 30.

The two projects are the 33-MW Alla plant and the 100-MW Bontu Batu plant, both located in Enrekang, South Sulawesi.

"We are looking for partnerships with local firms to forge sustainable cooperation to develop the technology in the future," Fossum said.

KFG, in partnership with a local firm, has already established PT Sulawesi Mini Hydro Power (SMHP), in which the Norwegian company holds a 95 percent stake, to develop five power plants with a total capacity of 30 MW as pilot schemes.

"We will sign the power purchase agreement tomorrow (Friday) with PLN for the Manipi plant, one of the five plants with a capacity of 10 MW," SMHP country manager Atot W. Saptari explained.

He said the electricity produced by SHMP would be sold at a price of Rp 469.22 (51 U.S.cents) per kilowatt hour (KwH), while PLN would sell it to consumers at around Rp 600 per KwH.

Fossum acknowledged Indonesia's huge hydro-power potential.

Four Countries Intend to Build Nuclear-Powered Electricity Generating Plant

IRMAWATI, ALI NY, Tempo Interactive - 2007-03-08 09:53:31

Jakarta, 07 March, 2007 (Tempo Interactive) - Energy and Mineral Resources Minister Purnomo Yusgiantoro has stated that four countries are interested in constructing a nuclear-powered electricity generating plant (PLTN) in Indonesia.

The four countries include France, Japan, Korea and the United States.

“Germany is perhaps interested as well,” said Purnomo on Monday (03/05).

According to him, the construction of the PLTN will be carried out between 2015 and 2017.

Purnomo went on to say that currently the government is carrying out inter-agency coordination to set up a Nuclear Power Advisory Council.

He also said that nuclear power utilization was also related with research, development, mining, manufacturing, production, distribution, storing, transferring, export, import, usage, decommissioning and radioactive waste management.

The government has already chosen the Muria region in Jepara, Central Java, as the location for building the PLTN.

For the time being, a study on the environmental impact is being conducted there.

Banks Provide Rp7.6 Trillion for Toll Road

Thursday, 08 March, 2007 | 14:40 WIB

TEMPO Interactive, Jakarta: PT Bank Mandiri, PT Bank Negara Indonesia and PT Bank Rakyat Indonesia will provide Rp7.6 trillion in loans for PT Jasa Marga.

The funds will be used to build three toll roads, Semarang-Solo, Gempol-Pasuruan and the Bogor Outer Ring Road.

The Rp7.6 trillion financing will be provided by Mandiri with 40 percent, BNI 35 percent and BRI 25 percent using the club deal method..

Under the club deal method, none of the creditor banks is the leader, which means that an agreement is signed by Jasa Marga with each creditor.

Agus Martowardojo, Bank Mandiri’s Managing Director, said that the disbursement was a form of the bank’s support in developing toll roads.

“The loan agreement has now been signed, so what’s left now is the land acquisition,” he said in Jakarta yesterday (7/3).

According to Agus, two out of three toll roads to be financed, Semarang-Solo and Gempol-Pasuruan toll roads are part of the Trans-Java toll road development. “

We hope that with this financing, the Trans-Java toll road development can be soon realized,” he said.

BNI’s Managing Director Sigit Pramono said that BNI has prepared toll road financing of around Rp12 trillion.

Of that amount, Rp8.8 trillion was prepared for Trans-Java toll road development and the remainder is for non Trans-Java toll roads.

“As much as Rp5.6 trillion for Trans-Java (toll roads) has been approved (to be disbursed),” he said.

Agoeng Wijaya and Desy Pakpahan

SAS Institute's Investment Totals US$2 Million

Eko Nopiansyah, TEMPO Interactive - 2007-03-08 09:59

Jakarta, 07-March-2007 (TEMPO Interactive) - SAS Institute Inc., a developer of software for business applications, plans to invest US$2 million, or around Rp18.4 billion, over the next three years for developing the business application market in Indonesia.

Erwin Chan, Chief Operating Officer of SAS Indonesia, said that the potential of the software market for business applications in Indonesia is still large.

“Especially in the banking, telecommunication and public sectors, because they all experience significant growth,” said Erwin yesterday (6/3).

SAS's CEO Jim Goodnight said that in general, the revenues of SAS in 2006 rose by 12 percent to US$1.9 billion, compared to US$1.7 billion in 2005.

The revenue hike was contributed to by the additional 1,300 new customers that entered the market in 2006, including Citi Info, Google Inc., Honda Motor Co., Ltd., HSBC Bank Canada and Texas Instrument France.

Contributions from the Asia Pacific region in 2006 were 10 percent of the total revenues of SAS.

“We will strengthen the market in this region in 2007,” said Goodnight.

The measures to be taken by SAS in order to reach their target include expanding its distribution network and combining the best technological solutions.

Sanyo, ITB develop water purification pump

The Jakarta Post, Jakarta

The Bandung Institute of Technology (ITB), in collaboration with Sanyo Electric Co. Ltd., has successfully developed a pump equipped with ozone-based water purification technology, which it has dubbed Aquaoasis and plans to start mass producing in April.

"This is a very important product for ITB because of the involvement of its researchers in the development process," ITB Rector Djoko Santoso said Wednesday in Jakarta.

He said he hoped the pump would help improve access to clean water around the country.

The government is currently striving to meet the United Nations Millennium Development Goal of providing access to clean water to 80 percent of the country's population by 2015.

Currently, only 34 percent of the 215 million people have access to clean water.

Sanyo, which invested US$1 million in the development of the Aquaoasis pump, will produce and sell it, while the ITB will evaluate and analyze its benefits in Indonesia.

"We will invest US$3 million more and plan to produce 20,000 pumps in the first year," said Sanyo executive director Akira Kan.

He said Sanyo would manufacture the pumps at its plant in Cikarang, West Java, and sell them for $700 each. However, he said he expected the price could be reduced after production increased.

He stressed that the pumps would contain 70 percent local and 30 percent imported content, with the ozonizer being imported from Japan.

After one year of production and sale in Indonesia, the pumps would be exported to other developing countries, such as India, Vietnam, Malaysia and the Philippines.

Industry Minister Fahmi Idris said the planned exports of Aquaoasis pumps would hopefully help increase Indonesia's foreign exchange earnings from electronics exports to $9.5 billion in 2009 from $6.6 billion in 2005.

Renault in talks to set up RI plant

Bloomberg / The Jakarta Post - 2007-03-07 10:35:57

JAKARTA, March 7, 2007 (Bloomberg) - Renault SA, France's second-biggest car-maker, is in talks with the government to set up a plant here, an official says.

"We are in intensive talks with Renault," M. Lutfi, head of the Investment Coordinating Board told reporters in Jakarta on Tuesday. "We will hold serious discussions with Renault at the end of this month."

Renault may set up a plant with a capacity to produce 35,000 sedans' and utility vehicles per year, Lutfi said.