Indonesia to build four nuclear power plants by 2025

The Jakarta Post

Antara , Surakarta, Central Java | Wed, 03/12/2008 3:02 PM

The government plans to build four nuclear power plants by 2025 to meet electricity demand, State Minister for Research and Technology Kusmayanto Kadiman said Wednesday.

"If one nuclear power plant can produce 1,200 megawatts of electricity, we need four plants by 2025 to meet demand," he said during a visit to Surakarta's March 11 University.

"We have surveyed a number of sites for the nuclear plants including in northern Java and southern Kalimantan."

Kusmayanto said going nuclear was part of the country's 2004- 2025 long-term development plan.

The government plans to build the first nuclear power plant near Mt. Muria in Jepara, Central Java. The plant is expected to be operational by 2016 despite strong opposition from residents and environment activists.

"We have to start the construction this year. Otherwise, we will be behind schedule," Kusmayanto said.

"It is normal if there are parties who oppose the plan. We have prepared everything for the nuclear power plant from planning, technology, financing to human resources."

Indonesia currently has three nuclear reactors for scientific purposes in Bandung, Yogyakarta and Serpong, Banten.

IHG to open two new resorts in Bali under InterContinental and Holiday Inn Brands

08/03/2008 10:39

The FINANCIAL -- IHG (InterContinental Hotels Group) announced the expansion of its resort portfolio in Bali, Indonesia's top leisure destination, with the signing of the InterContinental Bali Sanur Beach Resort and a Holiday Inn Resort on Tuban.

InterContinental Bali Sanur Beach Resort, managed on behalf of PT Restu Maharani, is scheduled to open in late 2009. The new-build resort designed by award-winning architectural firm eco-id with interiors by Hadiprana will occupy seven hectares of beachfront property on the tranquil coastal village of Sanur. The luxury resort's 104 rooms and suites will be located in low-rise cluster pavilions and will be complemented by 54 private villas, all featuring private pools with underwater seating, outdoor showers and private landscaped courtyards. The resort will also offer a wide selection of premium facilities, including a luxurious Spa InterContinental with spacious indoor and outdoor treatment areas, an all-day beachfront restaurant and specialty dining. InterContinental Bali Sanur Beach Resort will be the second InterContinental hotel on the island and sister property to the award-winning 418-room InterContinental Bali Resort on Jimbaran Bay.

The Holiday Inn Resort on Tuban is a 200-room property set on three hectares of Balinese gardens with direct beach access. Managed by IHG on behalf of PT Menara Perdana, the resort's opening later this year will mark the Holiday Inn brand's entry to the island. Extensive refurbishments are underway to bring the property to Holiday Inn Resort brand standards. Facilities will include a Tea Tree Spa and a kids' club with extensive outdoor play area.

"Bali is one of Asia's most popular destinations, attracting high-spending leisure travellers, corporate meeting attendees as well as families. IHG already manages a successful InterContinental resort on Jimbaran Bay and with these two new hotels, our guests can look forward to more choice of accommodations across two brands in three unique locations," said Jan Smits, chief operating officer, Southern Asia and Korea, IHG Asia Pacific.

Entrepreneur group to help SMEs tap stock market

The Jakarta Post , Jakarta , | Tue, 03/11/2008 1:38 AM

The Indonesian Young Entrepreneurs Association (HIPMI), made up largely of owners of small and medium enterprises, has commissioned a research study on ways in which SMEs can benefit from the stock market boom.

The research will be jointly conducted with state-owned financing firm PT Bahana Pembinaan Usaha Indonesia (BPUI) and a research institution, the Center for Finance, Investment and Securities Law (CFISEL).

"The main problems for SMEs are related to capital, market access and business development. The capital market is an alternative solution to such problems," Hipmi chairman Sandiaga S. Uno told reporters in Jakarta on Monday.

He said of the 40 million SMEs in Indonesia, some 1,700 had the potential to enter the stock market as they possessed assets ranging from Rp 5 billion (US$545,000) to Rp 50 billion ($5,450,000).

Presently HIPMI has 100,000 members across 33 provinces.

President director of BPUI, Boyke Mukijat, said SMEs needed thorough business plans before entering the stock market.

"SMEs in England, Canada, Italy and many other countries have successfully expanded their businesses by going public. We believe the same can be achieved in Indonesia," he said.

BPUI, which serves as the backbone of Bahana Group, provides financial infrastructure for various kinds of businesses.

Edward T. Lubis, director of Bahana TCW Investment Management, another member of the Bahana Group that deals with investment funds, said SMEs could take advantage of current developments in the stock market.

"Foreign capital is returning to Indonesia and a shift is happening in our society's financial policy, from savings oriented to investment oriented," he said.

Boyke said BPUI wanted to make sure SMEs took this opportunity with full awareness of what to expect and how to meet expectations.

He said the research study would provide case studies of SMEs that had successfully participated in the stock market.

Sandiaga said one of the problems SMEs faced in accessing the capital market was the requirement for them to establish limited corporations before going public.

"The government should also consider devising a mechanism that will facilitate SMEs to enter the capital market," he said.

Wahyuni Bahas from CFISEL said financing facilities currently offered to SMEs, such as loans from the government or from commercial banks, were spoiling them.

"When SMEs go public, they are forced to improve their management, fulfill responsibilities to shareholders and make other positive improvements," he said. (lva)

Adaro plans IPO in Q4

The Jakarta Post | Tue, 03/11/2008 1:37 AM

Indonesia's second largest coal producer, PT Adaro Indonesia, is planning to unload some of its stake to the public through an initial public offering in the fourth quarter of this year in a bid to help fuel its expansion.

"We hope to be able to go public in September or during the fourth quarter of this year. Our target is to raise some US$500 million," said Sandiaga Uno, who with tycoon Edwin Soeryadjaya and other investors control Adaro through private equity firm Saratoga Investama Sedaya.

Saratoga controls around 33 percent of Adaro, which produces around 25 million tons of coal annually.

Sandiaga said Adaro would probably sell between 20 and 30 percent of its stake, with Goldman Sachs, DBS Vickers and UBS AG Securities underwriting the sales.

He said around $200 million of the IPO's proceeds would be used to refinance the company's debts, and the remaining $300 million would be set aside to purchase four coal mines and to construct a power plant.

Herbal medicine expected to soar this year

Aditya Suharmoko , The Jakarta Post , Jakarta | Mon, 03/10/2008 1:20 AM

Herbal medicine, known locally known as jamu, has become increasingly popular recently as global consumer trends turn to nature and 'old wisdom' in search of cures.

Indonesia's major herbal consumers and producers are likely to see jamu getting a stronger foothold this year, with growing demands from both domestic and export markets as well as government support, the jamu association says.

"The jamu industry has good potential for development, with an annual growth of around 20 percent," said Charles Saerang, chairman of the Indonesian Herbal and Traditional Medicines Entrepreneurs Association (GP Jamu).

This year, he said, the country's herbal medicines industry could reach total sales of Rp 5 trillion (US$550.96 million), up 20 percent from Rp 4 trillion in 2007.

As for exports, jamu entrepreneurs have aimed to double last year's US$4 million of exports.

Nyonya Meneer and Sido Muncul, the two largest jamu producers in Indonesia, which export to destinations including Malaysia, Singapore, the Philippines, Taiwan, Saudi Arabia, the U.S. and the Netherlands, both plan to diversify their export destinations this year.

Another reason to be positive about jamu sales and exports, Charles said, was the new found government support that recently registered copyright for jamu as an Indonesian trademark.

"The government and industry have agreed that 'Jamu' should be recognized as an Indonesian trademark. As the next step, the government must promote jamu to the world," he said.

China's herbal medicine industry grew significantly after it began to get support from the Chinese government, he added.

As its first steps to promote jamu to the rest of the world, the Indonesian government plans to hold an international symposium on Temulawak (Curcuma xanthorrhiza) in late May and an international exhibition on jamu next year.

More than 80 percent of the country's total population (220 million) have consumed jamu--a really huge target market, GP Jamu says.

"In Malaysia, almost half the population consume traditional medicine. Imagine if this happened in Indonesia," Charles said.

Sido Muncul president director Irwan Hidayat believed the country's jamu industry could be developed further.

"Some pharmaceutical companies have introduced semi herbal medicine to cure colds (masuk angin) to compete with jamu. This shows the jamu industry has a huge market," he said.

Currently, Indonesia has some 1,243 jamu producers, 129 of which are large-scale producers. The rest are small and medium enterprises (SMEs) operating mostly in East and Central Java.

SMEs contribute around 20 percent of the total annual jamu sales nationally.

The industry could employ at least 3 million workers per year, Charles said.

"This number could increase, considering more and more Indonesians take jamu."

He also said the industry planned to acquire more land in East and Central Java because farmers could grow herbs there more easily.

Jamu producers have become more creative with products and packaging, like selling jamu in syrup form. The rising price of medicine has also helped to sway consumers toward traditional medicine, Charles said.

The future, however, was not all rosy for jamu, as producers were challenged to make products that comply with standards set by the Drugs and Food Monitoring Agency (BPOM), he said.

Currently, only 10 out of 1,243 jamu producers produce "quality" herbal medicine.

Many unauthorized herbal medicines are distributed nationwide and could threaten the growth of the jamu industry, Charles said.

Sales Performance: - 2006 Rp 3 trillion - 2007 Rp 4 trillion - 2008 Rp 5 trillion (forecast)

Export: - 2007 US$4 million - 2008 US$8 million (forecast)

Big Players: - Martha Tilaar - Mustika Ratu - Sido Muncul - Nyonya Meneer - Jamu Jago

Maybank keen to buy indirect stake in Indonesian bank

The Star Online

PETALING JAYA: Malayan Banking Bhd (Maybank) yesterday announced it was keen to buy an indirect stake in PT Bank Internasional Indonesia Tbk (BII).

Despite two earlier failed attempts to have a presence in Indonesia, Maybank is now seeking to acquire a stake in Indonesia’s sixth-largest bank, from the latter’s major shareholder, Fullerton Financial Holdings Pte Ltd. Fullerton is a unit of Singapore’s Temasek Holdings.

In a one-paragraph statement, Maybank said “it has indicated to Fullerton, the majority shareholder of BII, of its interest in acquiring its shareholding” in BII.

Maybank said it would make any further announcement at an appropriate time.

BII had on Feb 25 announced that Fullerton had informed of its decision to dispose of its interest in BII in line with Indonesia’s single presence policy.

Fullerton had expected to complete the sale before the regulatory deadline of end-December 2010.

Temasek is looking to sell its BII stake because the Indonesian central bank does not allow foreign investors from owning more than one bank. According to Reuters, Temasek also controls Indonesia’s PT Bank Danamon Tbk.

Fullerton holds 75% stake in BII’s controlling shareholder, Sorak Financial. Sorak, in turn owns 55.78% stake in BII. Reuters said Sorak’s BII stake could be worth about US$1.07bil at the current share price and Temasek’s 75% stake could be worth US$800mil.

BII has over 230 branches and 700 ATMs across Indonesia as well as a banking presence in Mauritius, Mumbai and the Cayman Islands.

In 2004, the Maybank-led consortium (comprising Maybank, Khazanah Nasional Bhd and PT Jaminan Sosial Tenaga Kerja) had failed to acquire a 51% stake in PT Bank Permata Tbk.

Last year, Maybank had signed a memorandum of understanding with Panin Life Tbk to commence discussion to acquire a 60% stake in PT Anugrah Life Insurance, a subsidiary of Panin Life. However, the Indonesian government told Maybank that it was unable to consider the acquisition.

Traditional markets get a boost

Novia D. Rulistia , The Jakarta Post , Jakarta | Sat, 03/08/2008 12:11 PM

The government has allocated Rp 140 billion (US$15 million) for the construction and renovation of traditional markets throughout Indonesia this year, an official said.

Speaking to The Jakarta Post on Thursday, the Trade Ministry's director general for domestic trade, Ardiansyah Parman, said the budget, although limited, was expected to cover the renovation of market infrastructure, especially in the regions.

Ardiansyah said the budget, which was increased from Rp 100 billion in 2006, would be used to finance the construction of 32 traditional markets, 42 markets in remote and undeveloped regions, five markets in border regions as well as on the smallest and outer islands, 10 markets in regions that had been hit by disasters and nine supporting markets.

"Ideally, the budget needed for the development of traditional markets is Rp 15 trillion," he said, adding that it would take years to cover the development of 12,000 markets in 462 regencies throughout the nation.

The government has said that the survival of traditional markets is at risk as more people shop at modern markets.

In response, the government is also urging vendors at traditional markets to improve their services and market conditions, to maintain customers.

The government also issued a presidential regulation in 2007, which, among other things, restricts the expansion of modern retailers, including supermarkets, hypermarkets and convenience stores, in certain zones.

Last year, 20 traditional markets were built in provinces hit by disasters, including in Nanggroe Aceh Darussalam, Bengkulu, South Kalimantan and South Sulawesi.

In addition, seven traditional markets were built in border regions, such as Entikong in West Kalimantan, Skow in Jayapura and the Sangihe Talaud islands in North Sulawesi.

In remote regions, markets were built in the Mentawai islands, off the western coast of Sumatra, and Enggano off the southwest of Sumatra.

"For next year, we suggest that the budget for the development of traditional markets should be included in the special allocation funds (under the annual state budget) in order to speed up the development process," Ardiansyah said.

The role of local governments and the private sector in developing traditional markets also has to be stepped up, he said.

Islamic funding initiative aims to help reduce poverty

Desy Nurhayati , The Jakarta Post , Jakarta | Sat, 03/08/2008 12:10 PM

Indonesia has come out in support of an initiative by the Islamic Development Bank (IDB) to establish a fund aimed at promoting solidarity and cooperation among Islamic countries in line with poverty alleviation movements.

President Susilo Bambang Yudhoyono on Thursday met with the president of the IDB, Ahmed Mohammed Ali Al Madani, at the State Palace.

They discussed the idea of establishing the Islamic Solidarity Fund for Development (ISFD), which was proposed during an Organization of the Islamic Conference (OIC) meeting in 1991.

Finance Minister Sri Mulyani Indrawati said after the meeting the ISFD was a fund collected by OIC member countries and the IDB to be disbursed for poverty alleviation programs in Islamic countries.

"As of now, we have collected US$2.6 billion, with $1.6 billion from OIC members and the remaining from the IDB. We have targeted to collect $10 billion," she said.

"We will invest the money and use the profit to finance poverty alleviation programs, such as through public-private partnerships in micro-financing and other activities that are aimed at improving the economy."

She said other initiatives would include delivering technical assistance through vocational training, in a move to develop working skills and create more job opportunities.

The meeting was also attended by the former president of Sudan, Abdel Rahman Swar Al Dahab, IDB regional office director Ahmed S. Hariri, an adviser to the IDB president, Mansour bin Fetten, and former Indonesian president B.J. Habibie.

"President Yudhoyono said he fully supported the idea and would discuss it with other OIC members in the upcoming summit in Senegal," Sri Mulyani said.

She said it would require the commitment and contributions from all OIC members, and that it would take years to completely realize the idea.

Chevron to spend $4bn in region

Yuthana Praiwan, Bangkok Post

Chevron Corporation says it will invest a total of US$4 billion in upstream petroleum activities in nine countries in the Asia-Pacific region, with Thailand receiving the largest share.

The US-based oil company will expand activities in seven countries where it already has operations: Bangladesh, Burma, China, Australia, Indonesia, the Philippines and Thailand.

New offshore projects are planned in Vietnam and Cambodia, according to Joseph Geagea, managing director of the company's Asia South Business Unit.

However, the main activity would be in Thailand, Indonesia and Australia, he said.

The region's largest gas and oil producer said the Asia-Pacific budget accounted for 20% of the group's global upstream investment budget.

Mr Geagea said the region's demand for oil and gas had been growing rapidly for several years, making it the world's largest consumer with a 23% share of global oil and gas demand of 133 million barrels of oil equivalent per day (boed) in 2005, equal to the United States.

Asia-Pacific demand is expected to meet 29% of world demand in 2030, forecast at 199 million boed.

Tara Tiradnakorn, president of Chevron Thailand's exploration and production unit, said upstream natural gas exploration in Thailand required an investment of $3.1 billion from this year to 2022 for additional output of 740 million cubic feet per day (mmcfd) in 2012, compared with 500 mmcfd last year.

Its major resources in Thailand will come from the 330-mmcfd Platong 2 field and the remaining 170 mmcfd from existing platforms in the Gulf of Thailand.

Chevron last year produced 1,638 mmcfd of gas, representing 48% of the total supply in the country.

Net daily production of oil and gas was 224,000 boed from its 20 sites in the Pattani Basin in the Gulf of Thailand.

In Indonesia, the group will develop a deep-water gas project at the Gehem and Gendolo fields, while it will also expand crude production at North Duri, its largest field in Indonesia.

Milestone under ADB Financed Roads Project Reached (ADB)

Asian Development Bank

Banda Aceh, INDONESIA – On Wednesday 5 March 2008, officials from BRR, the Indonesian government’s agency responsible for post-tsunami and earthquake rehabilitation and reconstruction of Aceh and Nias, the Banda Aceh city government as well as from the Asian Development Bank (ADB) witnessed the placement of a beam of the Laguna Bridge, an important milestone under the ongoing project for the reconstruction of the roads linking the port area at Ulee Lheue to the city center of Banda Aceh, the provincial capital of Nanggroe Aceh Darussalam (NAD), and to the Aceh West Coast Road.

“This project is the crown jewel of the reconstruction projects in Banda Aceh,” says Kuntoro Mangkusubroto, Head of BRR. “I’m eager to see its successful completion in November this year.”

The mayor of Banda Aceh, Mawardi Nurdin, says, “We’d like to give great thanks to ADB for its many contributions to Banda Aceh, such as this road, the many houses rebuilt as well as other public facilities.”

The road project serves the Meuraxa communities as well as providing access to the ports serving the Banda Aceh fishing industry and the ferry service to Sabang on Pulau Weh, which is a well-know tourist destination and has the potential to become a regional deep sea water port.

The December 2004 earthquake and tsunami caused widespread damage to the residential and commercial areas as well as infrastructure and roads in the Ulee Lheue - Meuraxa area. In addition, ground levels were distorted with some places subsiding more than one meter causing much of what was formerly dry land to be submerged, with other areas being higher than previously.

Read whole story ...

Wider Alternative Access Road to Soekarno-Hatta Airport

Thursday, 06 March, 2008 | 18:41 WIB

TEMPO Interactive, Tangerang:The Tangerang Municipal Government plans to widen Jalan Irigasi, Benda District, from 1.5 meters to 14 meters in order to improve the flow of traffic to Soekarno-Hatta airport.

This 1.5 kilometers long road connects Daan Mogot and Husein Sastranegara roads.

According to Dadang Durachman, Head of the Tangerang Municipal Government Planning Board, this proposal has already been submitted to the Banten Provincial Public Works Department.

The reason for widening this street is because the Sedyatmo toll road is flooded during the rainy season, leading to traffic jams.

People have been using Jalan Daan Mogot as an alternative route to reach the airport, but the road is too small.

If Jalan Daan Mogot is widened, then traffic between Jakarta and Tangerang towards Soekarno-Hatta Airport through Jalan Irigasi (AMD) alongside the flood canal, will flow better.

The construction of the new road will be connected to Jalan Irigasi, which was constructed last year over a length of 7km length and 7m in width.

During the construction, people going to the airport from Daan Mogot can use Jakan Halim Perdanakusuma.

Later on, it will be easier to use Jalan Irigasim which will be connected to the 14m wide Jalan Husein Sastranegara and Sedyatmo toll road, before entering the airport area through the airport main entry.

On the other hand, people from airport will be able to travel via Husein Sastranegara directly to Jalan Daan Mogot.

From there, people can continue on their journey to Jakarta or go straight to Tangerang via Simpang Kebon Besar.

INTERVIEW-India's Tata Power eyeing projects in SE Asia

MUMBAI, March 7 (Reuters) - Indian utility Tata Power Co Ltd (TTPW.BO: Quote, Profile, Research) is considering building power plants in Southeast Asia and is looking at mines in Indonesia though rising coal prices are making acquisitions expensive, its managing director said.

The company, India's oldest private power producer, is spending more than $6 billion to quadruple domestic capacity to 10,000 megawatts by 2013 from 2,300 megawatt.

"Instead of putting everything into India, we would be happy to expand overseas and look at Southeast Asia," Prasad Menon told Reuters in an interview on Friday.

Last year, Tata Power, valued at nearly $6.5 billion, was interested in Singapore's Tuas Power but rival Reliance Energy Ltd (RLEN.BO: Quote, Profile, Research) was shortlisted from nine firms for the sale by state-investor Temasek Holdings [TEM.UL].

Rising coal prices are making it expensive to acquire foreign mines, but the company is on the hunt, Menon said.

"We are looking for mines and offtake agreements in Indonesia and elsewhere, where we can find a combination of equity and long-term supply contracts," he said.

The company had earlier said it was eyeing coal from mines in South Africa and Mozambique.

Contract prices of thermal coal in Asia may rise by as much as 200 percent after recent supply disruptions, according to Merrill Lynch report on Friday. [ID:nSYD224890]

Tata Power supplies electricity to Mumbai, India's financial capital, and operates a distribution arm in New Delhi.

Menon said the company may enter coal shipping business as it seeks to import more coal for its coastal power plants. It plans to import nearly 12 million tonnes of coal a year.

RISING DEMAND

India and China will lead a 73 percent leap in world coal demand to 4,994 million tonnes of oil equivalent by 2030 from 2,892 million tonnes in 2005, the International Energy Agency said in late 2007.

"Higher coal prices will have an impact on Tata Power's future plans if it bids for other power projects in India," said Mehul Mukati, analyst with Emkay Share and Stock Brokers.

"The company has been constantly focusing on generation rather than distribution as risks are relatively lower," he said.

The utility, part of India's salt-to-software Tata Group, last year bought 30 percent stakes in two coal mines owned by Indonesia's largest coal producer, PT Bumi Resources (BUMI.JK: Quote, Profile, Research), for $1.3 billion.

Shares in the company ended 5.1 percent lower at 1,136.30 rupees in a weak Mumbai market (.BSESN: Quote, Profile, Research) that fell 3.4 percent.

Tata Power competes with top state-run producer NTPC Ltd, (NTPC.BO: Quote, Profile, Research), which contributes more than a quarter of India's electricity generation, and Reliance Energy.

Asian utilities are scouting for stakes in overseas coal mines on growing concerns over security of long-term supplies.

State-run Korea Electric Power Corp (015760.KS: Quote, Profile, Research) said last year it planned to buy a 10 percent stake in an Australian miner.

Menon said Tata Power also plans to double its wind power generation capacity to 200 megawatt by December.

He said the company was keen on power trading business and had picked up 5 percent in Indian Energy Exchange, a power bourse that is expected to start operations in the coming months.

(Editing by Louise Ireland)

Indonesia`s Medco Group to buy stake in Natuna gas block

Jakarta (ANTARA News/Asia Pulse) - Indonesia's Medco Group says it is ready to buy from the state-owned oil and gas company PT Pertamina more than a 10 per cent stake in the giant gas block of Natuna D-Alpha, in Riau.

Pertamina has said this will open an opportunity for local companies to take part in the development of the block, believed to have one of the largest gas reserves in the word. The government had previously awarded the project to ExxonMobil, but the U.S. oil giant failed to carry out its contract before expiry.

The block is estimated to have reserves of 46 trillion cubic feet of gas, but to have high carbon dioxide content of 70 per cent that needs higher costs and technology. The project will cost up to US$52 billion.

Britain wants to increase investment in RI`s energy sector

Jakarta (ANTARA News) - Britain wants to increase its investment in Indonesia`s energy sector and is interested in the possibility of taking part in the development of oil and gas fields in the D-Alpha Block in Natuna waters in Riau Islands province , a minister said.

The British interest was expressed by a member of the British royal family, Prince Andrew, at a meeting with Energy and Mineral Resources Minister Purnomo Yusgiantoro here on Tuesday (March 2).

Speaking to the press at the presidential office here Thursday about his meeting with the British royal, Purnomo said : "They want to increase their investment in Indonesia. They also want Shell to actively participate in Natuna."

The prince, who had come to Indonesia as his country`s special envoy for international trade and investment affairs, also discussed the recently-initiated nickel mining venture of Rio Tinto in Lasampala, Morowali, Central Sulawesi, with the minister.

During his stay in Indonesia, Prince Andrew also visited the Tangguh natural gas field in Papua last Wednesday (March 5). The natural gas field is run by British Petroleum (BP).

According to Purnomo, the prince had expressed hope that the Tangguh natural gas project worth Rp50 trillion would be successful and become a symbol of bilateral cooperation between Indonesia and the United Kingdom.

The Tangguh gas field was expected to begin producing by the end of 2008. Its output would be exported to Japan, China and the United States.

The prince who is British Queen Elizabeth II`s third child and second son and bears the title of Duke of York visited Indonesia from March 3 to 6, 2008 as part of a tour of several countries to promote Britain among foreign investors.

Salim Group may invest in Bengal’s IT sector

The Economic Times, 7 Mar, 2008, 0029 hrs IST,Sutanuka Ghosal

KOLKATA: After the chemical hub and expressways, the Indonesia-based Salim Group is poised to invest in West Bengal’s IT sector. The state government has offered a 97-acre plot to New Kolkata International Development (NKID) at Kalyani for setting up an IT Park.

Confirming the development, NKID co-promoter Prasoon Mukherjee told ET: “We have just received a letter from the state commerce and industries department inviting us to set up an IT park at Kalyani. The government will have to provide land to us for the park. We will set up the IT infrastructure there.”

Incidentally, NKID is the special purpose vehicle (SPV) floated by Indonesia’s Salim Group, Delhi-based realty firm Unitech and NRI entrepreneur Prasoon Mukherjee’s Universal Success for setting up a number of infrastructure projects in the state including the chemical hub at Nayachara island.

Mr Mukherjee said that the size of the project has not yet been decided. “We received the letter a few days back. We now have to work on the project proposal. The land, which is with the state government, will also have to come to us,” he added. Salim Group has an international expertise in IT projects.

Unitech Group has already forayed into creation of IT space in the country. In the next three years, Unitech has plans to develop close to 22 million square feet of IT/ITeS space in the country. “Universal Success is already developing some 45 lakh square feet of IT space at Rajarhat along with Unitech Ltd. We have already received SEZ status for this facility. Therefore, implementing an IT park will not pose any problem. We need the land from the state government only,” Mr Mukherjee said.

In fact, NKID has taken the in-principle decision to pay the cost of acquisition upfront for all its projects.

Bekasi Goes Green

Bahasa (Indonesian)

World Bank - Bekasi, March 3, 2008 – If there is any city in the island of Java that deserves to be recognized for its progressive, green-minded approach to sustainable development, that city would be Bekasi. A city of two million people just east of the capital, Bekasi has become the first city in Java Island to enter into an emission reduction purchase agreement that promises both environmental and social benefits.

The agreement entails the set-up of a gas-flaring facility at Bekasi’s Sumur Batu landfill, which generates up to seven hundred cubic meters of solid waste each year. The flaring technique essentially traps the methane gas resulting from solid waste, and goes a long way in reducing the number of climate pollutants deriving from Bekasi. Methane is a greenhouse gas that is potentially 21 times more harmful than CO2, the main contributor to global warming. The flaring facility will be built by PT Gikoko Kogyo Indonesia, an engineering company that specializes in clean air technology, and is scheduled to be operational by the end of March.

The World Bank, acting as a trustee of the Netherlands Clean Development Mechanism, will help provide the social benefit component. Under the agreement for Bekasi city, the World Bank will purchase 250,000 tons of CO2-equivalent of Certified Emissions Reductions (CER) each year, for the next 15 years. In the global carbon market, one CER is equal to one ton of CO2 and is priced between US$5 to $10. From the deal signed between the World Bank and PT Gikoko, seventeen percent of the revenues generated would towards developing Bekasi.

“Seven percent of the revenues will support community development in Sumur Batu,” said Bekasi city secretary Tjandra Utama Effendi in a press conference after the signing ceremony. “Another 10 percent of the revenue will be added to the local budget.”

The Bekasi gas flaring project is only the second of its kind in Indonesia. Last year, the World Bank facilitated a similar agreement to a landfill in Pontianak, West Kalimantan. Another such project is currently being prepared in Makassar, South Sulawesi.

Thailand's PTT bids for Tangguh gas: Official

Ika Krismantari , The Jakarta Post , Jakarta | Thu, 03/06/2008 1:21 AM

Upstream oil and gas regulator BPMigas confirmed Wednesday it was currently reviewing a proposal from Thailand's petroleum authority PTT on the purchase of gas from Tangguh Liquefied Natural Gas (LNG) plant in Papua.

BPMigas chairman Kardaya Warnika said PTT had submitted a bid aiming to top a deal previously signed between the regulator and U.S.-based Sempra.

"So far, PTT offers the best deal, but we are still waiting, should there be a better one," Kardaya said, refusing to mention the price.

The government has decided to review the deal in light of the surging price of LNG in the global market.

A number of other buyers, including from Japan and Korea, have also shown their interest in buying the gas, with each bidding for 1.85 metric tons per annum (mtpa) or almost half the amount poised to be delivered to the U.S. company.

In its latest report, BPMigas said the Tangguh project was ready to produce gas by the end of the year. The plant itself has a total production capacity of 7.6 mtpa and proven reserves of more than 14 trillion cubic feet of LNG.

Under the deal with Sempra, BP Indonesia, the operator of Tangguh LNG plant, would sell the gas to the U.S. company at a price of US$5.94 per million British thermal units (mmbtu) for 20 years.

However, the deal also allows BP Indonesia, with the consent of the government, to divert the gas to other buyers, subject to a "diversion fee".

The sale of gas from Tangguh had drawn protests from analysts and lawmakers who argued the government failed to secure good deals from the gas contracts with an average selling price of $4 per mmbtu.

The government also has deals with other buyers for the Tangguh gas, such as China's Fujian at a price of $3.35 per mmbtu for 25 years, Korea's SK Power at $3.50 for 20 years and Korea's Posco at $3.36 for 20 years.

The lawmakers and analysts claimed the price was too low as compared with the current global price, which recently has been at around $8 to $9 per mmbtu.

BPMigas said earlier that with the gas diversion the government had the potential for additional revenue of $1.75 billion.

Pertamina set to sign $2b deal with Iran

Ika Krismantari , The Jakarta Post , Jakarta | Thu, 03/06/2008 1:21 AM

State oil and gas company PT Pertamina will sign an agreement with an Iranian firm to build an oil refinery in Banten with a capacity of 200,000 barrels of oil per day.

If the joint venture materializes, the US$2 billion facility will be the second-largest oil refinery in the country.

President director Ari Soemarno said Wednesday a team from the company's processing and refinery division was on its way to Tehran to meet with representatives of Iran's state oil company, National Iran Oil Company.

Ari was speaking to reporters after the inauguration of the company's new directors.

The team will discuss a number of points before the signing, including the security of the crude oil supply.

The two companies had long planned the project but negotiations stalled over a disagreement on the refinery's oil supply.

Having initially promised to be able to supply up to 300,000 barrels of oil, the Middle East country said later it would only be able to supply 150,000 barrels, putting the project in jeopardy.

However, recently Pertamina struck a deal with Libya for another supply of 50,000 barrels of oil, reviving negotiations.

"We think a refinery with a 150,000-barrel capacity is not economically feasible. But it definitely is with 200,000 barrels now that Libya can help," Ari said.

Also on Wednesday, Pertamina replaced three of its directors.

Two of the three are women, Karen Agustiawan and Rukmi Hadi Hartini, replacing Sukusen Soemarinda and Suroso Atmomartoyo for directors of upstream and processing, respectively.

Waluyo, a former member of the Corruption Eradication Commission (KPK), became the director for general affairs and human resources, replacing Sumarsono.

State Minister for State Enterprises Sofyan A. Djalil said the next target for a shake-up in state firms would be power company PT PLN as the tenure of a number of directors, including president director Eddie Widiono and finance director Parno Isworo, are nearing their ends.

President want people`s empowerment program sped up, expanded

Bogor, West Java (ANTARA News) - President Susilo Bambang Yudhoyono has asked Coordinating Minister for People`s Welfare Aburizal Bakrie to accelerate and expand the coverage of the national program for people`s empowerment (PNPM Mandiri).

Speaking during a visit to Bogor Wednesday to observe implementation of some projects under the program, the President said it was important for all parties to help make the program a success so that the country`s poverty rate would drop and the people`s welfare improve.

"All state officials and local leaders must take part (in the program) and ensure that the program remains on track," he said.

He also asked the relevant cabinet ministers to periodically make field visits to observe the implementation of the program in the regions.

The president launched the PNPM program in April 2007 after considering people`s aspirations.

The President also asked West Java Governor Danny Setiawan to soon disburse PNPM funds totaling Rp720.63 billion that had been allocated for 3,598 villages in 383 sub districts in the province.

"I don`t want to see the funds remaining idle for too long. Everything has to be done fast and meet the targets," he added.

The government would increase the fund allocation for the program to accelerate the achievement of the poverty alleviation target in accordance with the Millennium Development Goals (MDGs) in 2015, he said.

In 2007, the government had appropriated a total Rp3.6 trillion in funds for the PNPM program and the amount would be increased to Rp13 trillion in 2008.

Yudhoyono said, the PNPM program was part of the government`s policy to alleviate poverty. Although all the results of the poverty alleviation program would not be visible in the short term, the poverty rate was already showing a downward trend, he said.

During his visit in West Java, the President also commissioned a flyover in Depok and a complex of flats for low income people in Bogor.

The president was accompanied by a retinue consisting of Coordinating Minister for People`s Welfare Aburizal Bakrie, Agriculture Minister Anton Apriyantono, Public Works Minister Djoko Kirmanto, Public Housing Minister Yusuf Asyari, Education Minister Bambang Sudibyo, Environment Minister Rachmat Witoelar and West Java Governor Danny Setiawan.

Getting there quicker with GPS

Zatni Arbi , Contributor The Jakarta Post, Jakarta | Mon, 03/03/2008 12:52 AM

A friend and I were in an office building in the Pondok Indah area, South Jakarta, and we were about to leave for the airport.

I had just powered up the Global Positioning System (GPS) device I had in my hand. While the device was busy determining our location, I selected our destination from the list of Points of Interest: Cengkareng Airport (Jakarta Soekarno-Hatta International Airport).

I had to wait for quite some time before the system finally zeroed in on our exact location. Once it knew where we were and where we wanted to go, it began to blow us away.

The sleek device I was playing around with this time was Mio C320. It was designed as a car navigation system, although it can easily fit into a shirt pocket.

What makes it stand out is its text-to-speech feature, which uses a woman's voice to guide the user turn-by-turn through the confusing maze of Jakarta's roads and alleys.

The Bluebird driver who took us to the airport was amazed at how accurate the instructions were every time.

"In three hundred meters, turn left." Or, "In two hundred meters, keep right". It was truly impressive!

The screen also showed some visual clues, too. On the upper left corner it had an arrow telling us where we should go next -- left, right or straight ahead.

The name of the next street we were to turn down was displayed at the top of the screen. The system also provided some trip statistics, such as the distance traveled.

We took a back street to avoid congested Jl. Sultan Iskandar Muda, which took us through a residential area. The intelligent software inside the device didn't mind.

On the contrary, it continued to tell us to turn left or right. It conformed to the route the taxi driver was actually taking.

At one point, we didn't follow the instructions and stopped at a mini mart to get some bottled drinking water. The system forgave us for our disobedience and recalculated the route to make sure we were back on the right track to the airport.

The name "Mio" may not be as familiar to us as Panasonic or Samsung, and it definitely has nothing to do with Yamaha motorcycles. Still, Mio is the market leader in GPS devices in the Asia-Pacific region.

Garmin, which may ring a bell when talking about GPS gadgets, is still the market leader in the U.S., but Mio is the No. 3 there, says Sonia Chan, Mio's sales manager.

Frankly, I wasn't aware of the Taiwanese brand Mio before I was given the opportunity to interview Sonia Chan from Mio Technology Limited, Yo Yoe from PT Tele Atlas Indonesia and Kemal Toha from Kahar Duta Sarana right after the product launch in Indonesia.

However, when I checked the Web, I realized I had been missing a lot. Luckily, I was able to play around with a Mio C320 to really see how great the Mio GPS device is.

Mio kicked off its official arrival in Indonesia by introducing six different models, including the Mio C320 car navigation system. My review unit was priced at around Rp 5 million.

The other models included the A701 and A501, which are GPS devices with PDA and GSM phone functionality, as well as the P560 and P360 -- two GPS-cum-PDA-only models. And there was also the C230, a compact car navigation device. All these devices run Windows Mobile 6. The A701 and A501 also come with a 3.2 MP camera.

The digital mapping data is compiled by Tele Atlas, a global company based in the Netherlands.

"We use 50,000 data resources worldwide to ensure the highest level of accuracy," said Yo Yoe, Tele Atlas Indonesia's General Manager.

Kahar Duta Sarana has been appointed by the Taiwanese company as the authorized distributor of Mio products for the Indonesian market.

"We provide the logistics and user training for these products," said Kemal, the company's director.

A GPS device uses signals from a network of GPS satellites. There is no charge for using the signals beamed by the 24 satellites that were put into orbit by the U.S. Department of Defense.

A GPS device needs at least three satellite signals to be able to determine any location on earth through a method known as triangulation. The results are shown on a digital map.

What are the things that I especially like about the C320? First, the large 4.3-inch touchscreen TFT is very bright and sharp. Secondly, the speech is very clear and the system uses remarkably simple English.

I didn't have the chance to measure the life of the integrated battery, but it should be more than enough for a long trip inside the city without crawling traffic.

Mio Technologies comes with the necessary accessories to attach it to the car's windscreen. There is a car power adapter as well, so we can use it for a trip all the way to Bali. Yes, Bali, folks.

Mio has preinstalled Tele Atlas' map for Jawa and Bali, Singapore and Malaysia. If I wanted to use it in Spain, for example, I would have to purchase the maps from Tele Atlas. It should be worth every cent, as the maps are very detailed. It even has addresses of nearby cash dispensers, gas stations, hotels, galleries, restaurants, etc.

By the way, if you use the device in countries like Singapore, the C320 will even alert you if there is a speed camera ahead.

There are a few shortcomings, of course. First, the screen tends to get washed out and unreadable outdoor under the sun. You can use it inside the car with no problem.

Second, the screen keypad is a bit too small for fat fingers like mine. This is something that Mio can learn from LG Mobile; in Viewty and Prada phones, I have no problem pressing the correct characters on the phones' touchscreen although the screen keys are pretty tiny.

Another item on my wish list is a mechanical volume adjustment. As it is now, turning the voice assistance up or down requires a lot of steps, which can create a dangerous distraction to a driver.

Finally, I think the system should also allow us to make some correction in street names. I came across Duri Kepa that should have been Duri Kelapa.

Despite these minor weaknesses, it will be very difficult for me to part with the C320. It's a very useful device, especially when you need to go to a place that you are not familiar with. It's no wonder someone once said "GPS is one of the most fantastic utilities ever devised by man".

Try using one of these Mios, and you'll be trying to convince your wife that you need it.

Royal visit seen as boost for RI investment

Andi Haswidi and Novia D. Rulistia , The Jakarta Post , Jakarta | Wed, 03/05/2008 2:15 AM

BUSINESS AFFAIRS: Prince Andrew shakes hands with the Minister of Trade Marie Elka Pangestu before a meeting in Jakarta on Tuesday.

Prince Andrew, the Duke of York, was in Jakarta on Tuesday as a special envoy for trade and investment, aiming to strengthen bilateral ties between the United Kingdom and Indonesia and look for new business opportunities.

The high-level visit, business players said, would help bridge the perception gap between existing foreign investors in the country and potential investors on Indonesia's investment climate.

"Existing investors, many of whom have been here for decades, are generally upbeat and positive about doing business in Indonesia despite challenges that exists," British Chamber chairman Simon Morris said during a luncheon with the Duke in Jakarta.

However, he said, potential new investors often had a different perception that could negatively affect their business decisions when it came to investing in Indonesia.

"I have no doubt that visits like this, by the most senior level of UK trade and investment, can only help to ensure that such perceptions are gradually overcome. It will also help to ensure that business and investment decisions can be more informed and fact-based," he said.

During the luncheon, the Duke said he was here as part of the Indonesia-UK strategic partnership agreement signed by President Susilo Bambang Yudhoyono and then prime minister Tony Blair in March 2006.

"I want to make it clear that Indonesia is an important trading partner for the UK and offers us considerable potential for further growth, and that is for both directions," he said.

The Duke said the UK also had a great deal of business expertise to be offered, particularly London as a global financial capital, with advanced financial and business consultancy services.

Regular high-level visits, he said, are crucial in building a mutual relationship between the two countries. He invited President Yudhoyono to visit London to raise Indonesia's profile and showcase the opportunities that exist here and in the UK

The Duke also met with the President and Trade Minister Mari Elka Pangestu, before heading to Papua to visit British Petroleum's Tangguh project until Wednesday.

Mari reported after the meeting that the total value of Indonesia's exports to the United Kingdom reached Rp 1.4 billion and that her office was projecting a 10 percent growth this year.

Bilateral trade reached $1.72 billion in the first 10 months of 2007, a 6.5 percent increase from $1.61 billion during the first 10 months of 2006. Total trade in 2006 reached $1.98 billion.

"Together with the ministry of maritime affairs and fisheries, we're cooperating with the UK government in establishing a fisheries trade corridor which will help us meet the standards of exports," the trade minister said.

The UK is the second largest investor here after Japan, with total investments of $4.6 billion, mainly in the oil, gas and mining sectors, where British Petroleum, Rio Tinto and Shell are all active. UK investors also have stakes in automotive manufacturer PT Astra International and several hotels.

WB, firm deal on carbon trading

Adianto P. Simamora , The Jakarta Post , Bekasi | Tue, 03/04/2008 11:11am

The World Bank and PT Gikoko Kogyo Indonesia signed an agreement Monday to develop an eco-friendly project that will trap climate pollutants released from the Sumur Batu sanitary landfill in Bekasi.

Under the agreement, the World Bank, acting as trustee of the Netherlands' Clean Development Mechanism (CDM) Facility, will purchase 250,000 tons of carbon dioxide (CO2) per year for 15 years.

"This project, together with the growing number of CDM projects in Indonesia, is an indication of the critical role the country is playing in addressing climate change," Joachim von Amsberg, World Bank director for Indonesia, said during the launch ceremony here.

The daily management of the landfill gas flaring project, aimed to harvest methane gas from solid waste in Sumur Batu landfill, would be run by Gikoko.

"The CDM enables Gikoko and Bekasi municipality to enter into private-public partnership in waste management to convert a liability with investment into a cash stream utilizing the Kyoto Protocol," said Joseph Hwang, production director of Gikoko.

Methane is a greenhouse gas that is potentially 21 times more harmful than CO2, the main contributor to global warming.

Carbon trading is part of the Kyoto Protocol allowing developing countries, including Indonesia, to reduce emissions.

The host of the CDM project will receive certified emission reduction (CER) credits issued by the United Nations executive board. The credits are traded in 38 developed nations that have the obligation to cut emissions between 2008 and 2012 by 5.2 percent below their 1990 levels.

The government of the Netherlands, which purchased the credits from the Bekasi landfill, is among the developed countries which are required to cut their emissions under the Kyoto Protocol.

One CER credit is equal to one ton of CO2 priced between US$5 and $10.

The UN Executive Board has approved 819 carbon reduction projects worldwide to begin in October -- 34 percent in India and 15 percent in China.

Indonesia, which ratified the Kyoto Protocol in 2004, listed only nine projects with the executive board. The government has so far approved 40 carbon trading projects. Most of them are related to the energy sector.

The UN reported that developing countries produced nearly 450 tons of CO2 and CER credits in 2006, with China still leading at 61 percent of the total.

The World Bank said the global carbon market was worth less than $1 billion in 2004 but skyrocketed to $11 billion in 2005 and to more than $30 billion last year.

The Bekasi administration said 7 percent of the funds generated from the carbon trading project would be used to develop communities living near landfill areas.

"The revenue will support community development in Sumur Batu. In addition, 10 percent of the revenue will be added to the local budget," Bekasi city secretary Chandra Utama Effendi said.

He said the Sumur Batu landfill received about 700 cubic meters of solid waste per day in the 10,000-hectare area, located along the northeast border of Bantar Gebang which belongs to the Jakarta administration.

Gikoko also expressed concerns about the United Nation's bureaucracy in validating the CDM project.

"The bureaucratic process is still too long. We have to wait about six months for validation to determine whether or not the UN approves the project. We hope the UN can improve its efficiency and encourage more private companies and local administrations to host CDM projects," Hwang said.