Norway launches country group to fight deforestation

Google/AFP

OSLO — Norwegian Prime Minister Jens Stoltenberg said Tuesday he would put together a group of the world's most important rainforest countries in order to fight deforestation.

The group, initiated "as part of our efforts to reach a binding climate agreement in Mexico in 2010," will consist of "the most important rainforest countries, among them Brazil, Indonesia, Guyana, Gabon, Papua New Guinea and others," Stoltenberg said in a statement.

"Developing countries represent 17 percent of the total emission of greenhouse gases," he said, adding "efforts related to rainforests may lead to one third of the emission cuts needed by 2020."

Norway, one of the world's leading oil and gas exporters, has made the fight against deforestation one of its top climate change priorities.

The Scandinavian, non-EU country argued Tuesday that reducing deforestation may lead to the "largest, quickest and cheapest cuts in greenhouse gas emissions."

At the UN Climate summit in Copenhagen, Norway said it would unblock one billion dollars as part of a 3.5 billion dollar aid package to fight deforestation, put together by the United States, Britain, France, Australia and Japan.

The Norwegian prime minister, speaking at his bi-annual press conference, said the deal reached in Copenhagen had "great weaknesses" but that it was an "important step" in the fight against climate change.

Stoltenberg said two of the greatest weaknesses of the last-minute deal reached in Copenhagen were the lack of numbered targets for the reduction of greenhouse gas emissions and the absence of a legally binding agreement.

He however lauded the international consensus of world leaders to tackle climate change, the involvement of emerging countries, developed countries' financing promises and control measures.

Potable potpourri

The Jakarta Post | Tue, 12/22/2009 9:21 AM

Workers stuff dried frangipani flowers (locally called kamboja) into sacks at a warehouse in Maron village, Probolinggo regency, East Java. The flowers are exported to China where they will be used as ingredients in health drinks. JP/Indra Harsaputra

Indonesia aims to reap Rp 1 trillion from Shanghai Expo

Aditya Suharmoko, The Jakarta Post, Jakarta | Tue, 12/22/2009 4:00 PM

Indonesia needs Rp 104 billion (US$10.92 million) to participate in Expo 2010 in Shanghai, China, from May to October next year, but is aiming to reap Rp 1 trillion in total transactions, an official said Tuesday.

"Our target includes export goods, investment and tourism ... There will be business missions, trade missions, business forums, product and cultural promotions during the six months," Edy Putra Irawadi, deputy to the coordinating economic minister in charge of industry and trade, said after a meeting with the industry minister.

The Rp 104 billion budget will be used to rent a 4,000 square meter booth. In 2003, Indonesia spent Rp 20 billion to rent a 324 square meter booth, he said.

Industry Minister MS Hidayat said the government would make international-standard preparations for the expo, hiring professional event organizers.

Russia commits early delivery of three Sukhoi fighters

Antara News, Monday, December 21, 2009 23:01 WIB

Jakarta (ANTARA News) - Russia has committed itself to delivering as early as possible the three Sukhoi jet fighters ordered by Indonesia, Indonesian Air Force spokesman Air Commodore FH Bambang Soelistyo said.

"We will help speed up the delivery of the three Sukhoi jet fighters for the Indonesian Air Force," Russian Ambassador to Indonesia Alexander. A. Ivanov was quoted by Bambang as saying on Monday.

Ivanov disclosed his government`s commitment at a closed-door meeting with Air Force Chief of Staff Vice Marshal Imam Sufa`at at the latter`s office.

Bambang said the delay in the delivery of three SU-27SKM Shukoi fighters was merely caused by technical and administrative problems and the Russian government had vowed to solve them soon.

Russia was supposed to deliver the three jet fighters in December 2009 and January 2010. But because of the problems the delivery had been postponed until October 2010.

"We do hope that they will be delivered earlier than October 2010. Three more Sukhoi jet fighters are enough to give the Indonesian air force deterrent capability. And the Russian government highly understands this," he said.

In 2003, Indonesia bought two SU-30MKs and two SU-27SKs from Russia. It signed a US$300 million deal with the Sukhoi manufacturer in 2007 for the supply of six Shukoi fighters.

The six consist of three SU-30MK2s and three SU-27SKMs. The three SU-30SKMs were delivered in December 2008 and January 2009.

Indonesia to host 2010 FAEA Meeting

Antara News, Monday, December 21, 2009 14:19 WIB

Jakarta (ANTARA News) - Indonesia will host the 2010 ASEAN Economists Association Federation in 2010, General Secretary of the Indonesian Economic Scholars Association (ISEI PP) Anggito Abimanyu, said here Monday.

Abimanyu said that the 2010 FAEA meeting will discuss the global economy in the 2010 Indonesian Economy Outlook seminar.

The previous 2009 FAEA meeting was held in Cambodia, with ISEI participating, he added.

Besides to host the FAEA meeting, ISEI will also hold a plenum in Bandung, West Java, to discuss small and medium enterprises that has been playing an increasing role in the economy, he said.

Meanwhile, the Head of the Asia Pacific Studies Center from the Gajahmada University, Sri Adiningsih said that the macro economic stability would be well maintained but needs to beware of fragility in the 2010 economic prospect.

"Economic stability is still fragile due to the potential risks that arise in the number of short-term funds in the Indonesian economy," Adiningsih said.

The short-term funds might leave Indonesia anytime, which will cause a great impact on the Indonesian economy.

Adiningsih said that the economy, industry and investment growth will rise, but sluggishly.

"The informal sector will develop, therefore ISEI will discuss the matter in Bandung," said Adiningsih who is also the Chairperson of the Fiscal Coordination Focus Group and ISSEI Monetary ISEI central committee.

At Least Rp 3t Required for Indonesia Sugar Industry, Officials Say

The Jakarta Globe, Arti Ekawati

Workers carrying freshly-harvested sugarcane in South Sulawesi. The government is aiming for Indonesia to become self sufficient in sugar by 2014 and to more than double sugar production by 2025. (Antara Photo)

Indonesia needs an additional Rp 3.1 trillion ($328.6 million) in investment to build 50 new sugar plants required to reach the goal of self-sufficiency in white and refined sugar by 2014.

The funds are needed to build 10 sugar plants with a milling capacity of 15,000 tons of cane per day, 15 plants with a capacity of 10,000 tons per day and 25 plants with a capacity of 6,000 tons per day, according to Achmad Mangga Barani, the director general of plantations at the Ministry of Agriculture.

The country currently has only 61 sugar factories, including 51 factories belonging to state-owned companies. Most are severely outdated.

Achmad said the domestic sugar industry required large-scale investment to maintain and develop sugarcane plantations and processing plants.

“We are working with BRI [PT Bank Rakyat Indonesia] to help create a consortium to fund sugar-plant projects,” Achmad said in an interview with the Jakarta Globe on Thursday.

Adig Suwandi, the secretary of state-owned company PT Perkebunan Nusantara XI, said the high price of sugar has provided an incentive to build factories and plant sugarcane.

Prices have more than doubled this year, and were trading at record highs last week, with white sugar selling at $687 a ton.

“The recent price is still favorable,” Adig said.

However, he cautioned that sugarcane output was often affected by climate conditions.

“We must use the right technology to reduce the impact of climate on sugarcane production,” he said.

He pointed to the extended heavy rains during the early milling season this year, which delayed transportation of cane from plantations to processing factories and reduced sugar content.

The government has set a goal of sugar self-sufficiency by 2014, with targeted output of 5.7 million tons, including 2.96 million tons of sugar for direct consumption and 2.74 million tons for the food and beverage industry.

In addition to generating investment, the government plans to implement new sugar quality standards next year. With the new standards, sugar will no longer being classified into two major categories — white sugar for direct consumption and refined sugar for processing by the food and beverages industry.

Under the new rules, sugar will be classified according to its color and based on its Icumsa rating. The lower the Icumsa rating, the brighter the color and better the quality.

“I hope sugar companies will be ready for the implementation of the new standards in 2010, that they will be ready to produce sugar that is up to the standards, whether for the food and beverage industry or direct consumption,” Achmad said.

Sugar for industrial purposes with lower Icumsa ratings will be sold at higher prices compared to sugar for daily consumption.

Factories not able to meet the higher standards will likely be required to produce raw sugar for further processing by factories.

“We will cooperate with the Industry Ministry and the State Ministry for State-Owned Enterprises to evaluate the companies, which ones will only produce raw sugar and which will produce the cane into sugar,” Achmad said.

Hino expands RI factory and production to increase sales

The Jakarta Post, Jakarta | Sat, 12/19/2009 1:05 PM

PT Hino Motors Manufacturing Indonesia (HMMI), the local subsidiary of a Japanese commercial vehicle manufacturer, has completed the expansion of its factory in Purwakarta, West Java, through a US$33 million investment.

President of Hino Motors Ltd. in Japan, Yoshio Shirai, said during an inauguration ceremony held on Thursday that the expanded factory would have a production capacity of 35,000 units per annum up from an initial capacity of 10,000 units per year. This makes the plant the largest Hino Motors' production factory outside of Japan.

The expansion project was started in mid-2007 and finished in August this year. The expanded factory, with a total area of over 53,000 square meters and total land area of 120,000 square meters, is now producing light duty trucks for Hino and for Toyota Motors Corp., which owns a 50 percent share of the Japanese automotive manufacturer.

Shirai said he expected to see an increase in the company's sales of commercial vehicles in Indonesia as a result of the increased production capacity in the country.

"Hino Motors Ltd.'s target for overseas market is to see a 20 percent growth in sales, but for Indonesia I think the sales *target* could be more for than that," he said, adding that his company's global sales, excluding the Japanese domestic market, was currently expected to reach 60,000 units by the end of 2009.

Toshiro Mizutani, president director of Hino's unit for distribution, sales and after-sales service PT Hino Motors Sales Indonesia (HMSI), said that the company sold 13,770 commercial vehicles last year and was expecting to see a drop to around 12,000 by the end of 2009 due to the (delayed effects of) the global economic downturn.

HMMI said it was also considering exporting products from the expanded Indonesian production facility to other regional markets.

"We are still studying the possibilities," Shirai said.

HMMI president director Kenji Ohara said the company currently had a 26 percent share of the Indonesian domestic market.

Gunadi Sindhuwinata, president director of automobile and motorcycle assembler PT Indomobil Sukses Internasional said the automotive industry is forecast to be even more lucrative in 2010. Its growth in sales is predicted to reach 10 to 20 percent, alongside the government's aggressive push forward to expand the required infrastructure (especially for toll roads) so that the industry can grow.

He added that the rate of economic growth, predicted to rise to between 5 and 5.5 percent in 2010, also provided the economic foundations for an expected increase in car sales next year.

The Indonesian Automotive Industry Association (Gaikindo) chairman Bambang Trisulo, told The Jakarta Post that he expected car sales to reach between 560,000 and 600,000 units in 2010.

"It depends *partly* on the impact of the latest developments in the Bank Century bailout saga and Dubai World debt problems," he said.

Gaikindo predicts car sales would reach around 475,000 units this year, down from the much higher level of sales in 2008, which reached 603,700 units.

Bambang said that commercial vehicle sales accounted for between 22 and 25 percent of all annual vehicle sales. (adh)

West Sumatra to build Rp 34b tsunami evacuation building

The Jakarta Post | Sat, 12/19/2009 2:53 PM

The West Sumatra administration is set to construct a tsunami evacuation building within the Gubernatorial Office compound in the city of Padang worth Rp 34 billion (US$3.6 million)

Dodi Ruswandi, head of the administration's Road, Spatial Plan and Residential Area Agency, said Saturday that the province has acquired Rp 17 billion for the project from the central government.

“We have completed the design and we are going to auction the construction tender on January,” he said as quoted by tempointeraktif.com.

Dodi said that the building would have four stories with two of the upper ones to be used for people to evacuate during tsunami disaster and the lower stories for administration offices.

The evacuation stories would also function as sports halls.

“The offices will only use light material partitions to ensure easy pulling down,” he said.

Dodi said that the building would be used as a model for city and regency administrations to build their own tsunami evacuation buildings.

The House of Representatives approved earlier this year the release of a Rp 300 billion (US$ 30 million) relief fund to assist reconstruction and rehabilitation in areas destroyed by a powerful earthquake in the province a in September.

The 7.9 -magnitude quake killed over 1,100 people, destroying tens of thousands buildings and houses in the coastal province.

Some experts have warned that the area, which lies near the colliding Indo-Australian and Eurasian tectonic plates, will bear the brunt of Indonesia's next major earthquake, as the final segment along the stretch is shifting and is expected to unleash a massive amount of energy.

The zone's other segment has already cracked, a large portion of it off Aceh. This crack triggered the 2004 Indian Ocean tsunami.

Indonesian Firm Picks Green Fuel Not Mill

The Wall Street Journal, By TOM WRIGHT

JAKARTA—PT Medco Energi, Indonesia's largest private oil-and-gas producer, has scaled back plans for a large pulp and paper mill and other forestry investments in Indonesia's remote Papua province at a time of growing global concern over the impact of deforestation on climate change.

Last year, Jakarta-based Medco, which is looking to diversify its revenues, said it was planning a 500,000 ton-per-year pulp and paper mill in Merauke district, on the southern tip of Papua, a sparsely populated California-sized Indonesian province that is covered in rainforests and home to only 2.5 million people.

The company also said it was looking for investors in the Middle East to participate in a food and biofuels project in Merauke, possibly on as much as 1 million hectares.

Those plans raised concerns among environmental groups. Until now, Papua's remote location has spared its natural forests from the destruction that paper mills and palm oil plantations have wrought on other Indonesian islands.

Medco has dropped plans for its pulp and paper mill and instead is focusing on a smaller-scale $70 million facility to produce wood pellets, a potential "green" fuel, said Aradea Arifin, the finance director of Medco's Papua operations, in an interview. It has also scaled down its food and biofuel ambitions and now plans to grow only a small amount of sugarcane.

The company is also working with Conservation International, the U.S.-based environment group, on a sustainable land-use plan for its mill that will set aside forest conservation areas inside Medco's concession.

"A pulp mill is very difficult in terms of the environment, so we changed," Mr. Arifin said in an interview.

Among other concerns, Mr. Arifin said the company wants to avoid social problems with Papuans, who use the forests for hunting and have in some cases attacked palm oil and forestry companies operating in the province. Medco also hopes its sustainable approach will allow it to get further forestry concessions from Papua's local government, whose governor, Barnabas Suebu, has declined to hand out large parcels of land to companies and says he doesn't want the province to be destroyed by rampant development like other areas in Indonesia.

Jatna Supriatna, the head of Conservation International's local office who began working with Medco last year, said he told the company's senior management that a large pulp and paper mill was going to cause "a problem with all the international NGOs" because of its impact on Merauke's eucalyptus forests. A wood pellet mill uses all parts of a tree, including branches, meaning it needs fewer inputs compared to a pulp and paper mill for the same production, Mr. Supriatna said.

Medco says it's hoping to cash in on increasing demand for wood pellets from companies in Europe and Asia that are under pressure to reduce their carbon emissions. Wood pellets are rising in popularity as a source of fuel to replace carbon dioxide-emitting coal in power stations and for heating.

Medco has teamed up with LG Corp. of South Korea, which has taken a 32% stake in Medco's Papua unit and will market the wood pellets overseas.

To be viable as a "green" fuel, Medco will need to prove that its wood pellet production doesn't lead to widespread forest destruction. Rainforests and peat lands are efficient absorbers of carbon dioxide, and their destruction through fires, forest-clearing or drainage releases the heat-trapping greenhouse gas back into the atmosphere.

The loss of rainforests accounts for about a fifth of greenhouse gas emissions globally. Despite its relatively small economy, Indonesia is the world's third-largest emitter of carbon dioxide behind China and the United States due to forest fires and drainage of carbon dioxide-dense peat lands, according to some estimates.

Climate change negotiators meeting in Copenhagen this week are focusing on ways a successor treaty to the Kyoto Protocol, which ends in 2012, could compensate investors in nations like Indonesia that forego revenues by preserving forests.

Medco's Mr. Arifin said the company has hired consultants to look at how it could protect forests in return for carbon credits, which can be sold to polluters in developed countries or traded on international exchanges.

Conservation International's study of Medco's 170,000-hectare forest concession in Merauke should be completed in the next couple of months, Mr. Supriatna said. The study, which is being prepared with input from a consultant from the University of Texas-Austin, will advise Medco on which areas it can selectively log and which should be protected for environmental or social reasons.

Medco says it is waiting for the study before it begins to cut trees in its concession area but is looking at setting aside at least 70,000 hectares of the total area for conservation. It is planning to build up industrial-wood plantations on the remainder of the land it clears, which take six years to grow.

A Medco mill has begun limited operations, using wood felled to make way for its production facilities, Mr. Arifin said. It plans to produce 100,000 metric tons of wood pellets in 2010 and 300,000 tons within two years.

Write to Tom Wright at tom.wright@wsj.com

Surakarta to Send Solo Batik Carnival to Singapore

Tempo Interactive, Thursday, 17 December, 2009 | 12:45 WIB

TEMPO Interactive, Surakarta:Surakarta will send tourism ambassadors to the Chinghay Festival in Singapore in February next year. In this world class event to commemorate Chinese New Year, Surakarta will present the “Solo Batik Carnival,” a batik-costumed party that has been held two times in Surakarta.

”The Solo Batik Carnival is the only delegation from Indonesia,” said the Head of the Surakarta Culture Office Purnomo Subagyo yesterday.

There are 100 participants of the festival that will be held in the Formula 1 circuit.In addition to 60 Solo Batik Carnival participants, they will invite several stakeholders in the tourism industry, such as hotel, airline, travel agent and tourism entrepreneurs.

“Besides the show, we will hold a business matching,” said Purnomo. In this activity, tourism business entrepreneurs will present the potential of Surakarta tourism to future consumers and stakeholders.

The Surakarta government has budgeted a Rp500 million from the 2010 regional budget for this activity.

AHMAD

PMI receives donation from South Africa

Antara News, Thursday, December 17, 2009 15:54 WIB

Jakarta (ANTARA News) - The Indonesian Red Cross (PMI) has received a donation of Rp600 million from the South African government for earthquake victims in West Sumatra.

Chairman of financial affairs at the PMI head office, Salahuddin Nyak Kaoy, said in a written statement to Antara on Thursday the donation from South Africa would be spent on the continuation of PMI`s disaster mitigation program in West Sumatra.

Salahuddin said several ongoing disaster mitigation programs in West Sumtra were among others the construction of temporary shelters for quake victims in the province.

The donation was officially presented by South African Ambassador to Indonesia Noel Noa Lehoko to Salahuddin at a ceremony at the PMI head office here on Wednesday night.

After receiving the donation, Salahuddin said PMI expressed high appreciation and gratitude to the South African government.

Meanwhile, the South African envoy said on the occasion that the donation was given

to PMI because he believed the Indonesian Red Cross was responsible in the emergency response which was supported by a number of experienced parties including the doctors after the disaster.

Noel Noa Lehoko said the donation from his country was part of its sympathy to Indonesia.

Russian investors ready to build tourist resort in Indonesia

Antara News, Thursday, December 17, 2009 18:34 WIB

Tanjungpinang, Indonesia (ANTARA News/Asa Pulse) - Russian investors were ready to develop a tourist resort in Bintan, Riau Islands Province, Mardhiah, head of the integrated Bintan district licensing and investment promotion body, said here Wednesday.

"Russian investors` willingness to invest in this province has been expressed in a meeting with Mr. Oleg Gurbulen, a Russian representative, last Tuesday (Dec. 15)," Mardhiah said here on Wednesday.

Russian investors plan to build a tourist resort at a 55-hectare coastal area at Berakit village, Bintan District. The construction work is expected to start late December 2009 or early January 2010.

Source:

Business in Asia Today - Dec 17, 2009
published by Asia Pulse

Indonesian govt to use shale gas on trial basis in 2010

Antara News, Thursday, December 17, 2009 11:00 WIB

Jakarta (ANTARA News/Asia Pulse) - The Indonesian government is to conduct experiments in the use of gas extracted from shale or otherwise also called "unconventional gas" beginning in 2010, an energy official said.

Shale gas, like CBM (local bed methane) which is imbedded in the core of coal, is considered the alternative energy of the future, Edy Hermantoro, oil and gas upstream director at the Ministry of Energy and Mineral Resources, said.

Shale gas is gas trapped in shale rocks. He said preliminary studies had shown Indonesia had sizeable shale gas reserves in its soil but the exact volume had yet to be measured.

Source:

Business in Asia Today - Dec 17, 2009
published by Asia Pulse

Indonesia’s first private railway project ready for construction

The Jakarta Post, Jakarta | Wed, 12/16/2009 9:21 AM

A group of investors will soon begin building the first ever private railway in Indonesia, worth US$1 billion, as a key part of the planned development of a massive $5 billion integrated industrial facility in East Kalimantan.

The project’s readiness was announced at a meeting Tuesday between Indonesian President Susilo Bambang Yudhoyono and the crown prince and deputy ruler of the Emirate of Ras Al Khaimah, Sheikh Saud Bin Saqr Al Qasimi.

The two were joined by Gita Wirjawan, chairman of Indonesia’s National Investment Coordinating Board (BKPM), Madhu Koneru, group CEO of MEC Holdings, Hari Sankaran, managing director and CEO of Infrastructure Leasing and Financial Services Ltd. (IL&FS), and Allen Alexander, the chairman, president and CEO of SavageCANAC Corporation, a media statement said.

MEC Coal and MEC Infra, two joint ventures of MEC Holdings and Ras Al Khaimah Investment Authority, will develop a 130-kilometer railway line to facilitate the transport of raw materials and finished products in and out of East Kutai regency in East Kalimantan.

Gita said MEC Infra had been able to purchase and clear the land for the entire corridor within just a few months.

“This undertaking will create multiple benefits for the development of the local economy in East Kalimantan,” Yudhoyono said in the statement.

“It sets a positive tone for future investments from the Middle East.”

Sheikh Saud said, “This type of public-private, Middle Eastern-Indonesian initiative is a fantastic example of what can be accomplished when the fundamentals make sense for all parties involved.

“This project will help meet the development needs of East Kalimantan communities, while also serving to meet the energy challenges in Asia.”

Under the project agreement, MEC Infra will invest up to $1 billion in constructing the railway line linking the mine site at Muara Wahau to Bengalon on the coast.

MEC’s mine and railway are central to the development of a complex of integrated industrial facilities.

These will include a power plant fuelled by coal from MEC Coal, an aluminium smelter, a fertilizer plant and a high-capacity port terminal, Gita said.

All these, he added, would require total “investment value of $5 billion”.

MEC Coal has a 12,000 hectare coal concession in East Kutai.

The statement also MEC and Nalco — an Indian government entity — would invest $2 billion for an aluminium smelter capable of producing 500,000 tons of aluminum a year, with another $2 billion for the construction of a 1,250-megawatt captive power plant and other facilities. Both are scheduled for completion by 2013.

“This investment serves as a huge vote of confidence from an investor base with which Indonesia shares long-term strategic interests,” Gita said.

Over the next five years, the project is expected to create 5,000 new jobs in the province.

MEC’s Koneru said the project would help “transform East Kalimantan into a model for the future of Indonesia by providing a strong platform for growth, helping Indonesia to attract further investments”.

Indonesia Moves to Cut Business Licensing Time

The Jakarta Globe, Camelia Pasandaran

Attendees participate in a long-distance IFC conference earlier this year in Jakarta. (Antara Photo/Andika Wahyu)

Four ministries and the Indonesia National Investment Coordinating Board (BKPM) have signed a joint regulation to slash the time needed to get a business license from 60 to 17 days.

Representatives of the Home Affairs, Trade, Manpower, and Justice and Human Rights Ministries announced the move on Wednesday. The regulation sets time limits for issuing each of the permits required to obtain a business license.

Vice President Boediono said the move was aimed at raising Indonesia’s rank with the International Finance Corporation (IFC), which issues regular surveys on the ease of doing business in various countries.

“Indonesia has been left far behind by other countries in the same region in terms of the time needed to issue a business license,” Boediono said. “We rank 161st with 60 days needed to issue it, while Thailand, with only 32 days, ranks 12th.”

It takes only three days to get a license in the Philippines and 11 days in Malaysia.

“The rank influences foreign investors,” said Boediono.

Home Affairs Minister Gamawan Fauzi also touted the government’s push to open so-called One Door Integrated Service offices across the nation, which are designed to give would-be businesspeople a single place to go to complete licensing processes involving multiple ministries.

“Last month there were only 299 offices, but we have raised the number to 314,” said Gamawan. He added that Batam would debut an electronic permitting service in January.

Gamawan said the government hoped to raise Indonesia’s rank to somewhere in the 50’s in the IFC’s international survey next year.

“By 2014, we are targeting Indonesia to be in the top 20,” he said.

Ports ready to operate 24/7 by January 2010: Officials

Aditya Suharmoko, The Jakarta Post, Jakarta | Wed, 12/16/2009 9:28 AM

A load off my mind: Loading and unloading activities at Tanjung Priok port in Jakarta. State port operator PT Pelabuhan Indonesia (Pelindo) II plans to develop Tanjung Priok port into an international hub port with docks 18 meters deep, starting next year. JP/R. Berto Wedhatama

The government plans to start running Indonesia’s ports around-the-clock by early January to speed up customs clearance and reduce logistics costs, officials said Tuesday.

“All ports will operate 24 hours, starting from Tanjung Priok Port [in Jakarta],” said Edy Putra Irawadi, deputy in charge of industry and trade to the coordinating economic minister, and chairman of the preparation team for the National Single Window (NSW).

The NSW is an integrated public service system to give importers and exporters simpler access to services.

Launched in December 2007, the NSW is designed to shorten the time needed to verify the identity of importers to a maximum of seven-and-a-half hours, or one working day.

Importers previously had to wait several days for customs clearance.

The NSW has now been implemented at Tanjung Priok Port, Tanjung Perak Port in East Java, Tanjung Emas Port in West Java, Belawan Port in North Sumatra and Soekarno-Hatta International Airport in Banten.

Coordinating Economic Minister Hatta Radjasa said last week the fifth phase of the NSW would be launched in January 2010 to ensure the management of all imports and exports was integrated in one portal.

Anwar Suprijadi, the Finance Ministry’s director general of customs and excise, said his office was ready to work around-the-clock to support the ports’ new operating hours.

“The ministry regulation [on the operating hours] is up to the finance minister,” he said after a seminar with the Priority Businesses Association (APJP), which has 71 members prioritized to run export-import businesses.

Businesses have often complained that inefficient public services at ports push business costs up.

Finance Minister Sri Mulyani Indrawati said in her speech Tuesday that importers and exporters should help the government protect the ports by reporting any misconduct.

Economist Aviliani said the NSW would create greater efficiency cut costs and improve investment competitiveness.

“These conditions are expected to attract investors to Indonesia,” she said.

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Major Indonesian Seaports Now Open Around the Clock

Freeport Indonesia unit says may sell stake to local govt

Reuters, Wed Dec 16, 2009 5:58am EST

JAKARTA, Dec 16 (Reuters) - The Indonesian unit of Freeport McMoran Copper & Gold Inc (FCX.N) which runs Grasberg mine in Papua said on Wednesday it is in talks with the local government in Papua about selling it a stake in the unit.

Freeport owns 90.64 percent of the subsidiary, PT Freeport Indonesia, which operates the huge Grasberg copper and gold mine in far-flung Papua province. The Indonesian government owns the remaining 9.36 percent.

"Dialogue and negotiations are ongoing about the possibility of the government of Papua province obtaining ownership shares in PT Freeport Indonesia," Mindo Pangaribuan, spokesman of PT Freeport Indonesia, said in a statement emailed to Reuters.

"The stakes offered will be Freeport's shares," he added, and offered to the Papua provincial government. However, he did not say how big a stake would be sold, or give details of payment, as talks are still in progress.

One possibility reported in local media is that the local government could take the shares in return for part of the royalties it receives from Freeport.

Last year, state miner PT Aneka Tambang Tbk (ANTM.JK) said it might buy a stake of up to 18.72 percent in PT Freeport Indonesia in a deal estimated to be worth about $3 billion. But the deal did not go ahead.

PT Freeport Indonesia has paid an estimated $6.9 billion in the form of royalties, dividends, and taxes to the central government between 2004-2009, of which 9.4 percent is paid to the local governments, the firm said in a statement to parliament recently.

Freeport, unlike some other foreign mining firms in Indonesia such as Newmont Mining Corp. (NEM.N), is not under any obligation to reduce its stake in its local unit.

The head of Indonesia Stock Exchange has said he is keen to get local units of international mining firms such as Freeport and Newmont to list on the bourse to lift trading and lure investors.

Grasberg, which has the world's largest recoverable reserves of copper and the largest gold reserve, accounts for nearly 40 percent of Freeport's total copper reserves of 93 billion pounds, according to the firm's website. The mine is about 3,350 km (2,080 miles) east of Indonesia's capital Jakarta.

Freeport is the world's largest publicly traded copper miner. PT Freeport Indonesia expects to produce 1.4 billion pounds of copper in 2010, unchanged from this year.

Protecting the World's From Vision to Action

Asian Development Bank

Climate change puts the health of the world's oceans at stark risk, but a global consensus has yet to be reached on which paths will lead to a solution. Every indecisive moment is a lost opportunity to bequeath a better world to future generations.

Speakers at the World Ocean Conference 2009, the first large-scale international event to bring together both ocean and climate change stakeholders and specialists, highlighted that oceans themselves play a key role in transforming the world's geography as temperature rise and that rising sea levels will have an impact on small-island developing states.

Governments, their development partners, nongovernment organizations, and the private sector must move quickly to adapt to or mitigate the impacts of climate change, speakers said. They must also, for the benefit of humanity, agree on ways to use marine resources sustainably.

Country delegates at the conference adopted the Manado Ocean Declaration, which recognizes that oceans play a crucial role in the global climate system and in moderating its weather systems, and that the oceanographic processes that result from this interaction will affect the rate of climate change.

This conference report goes beyond simply listing the proceedings and instead highlights key issues raised and solutions put forward by some of the more than 3,000 researchers, scientists, educators, and ocean experts from 74 countries who attended.

The report on the talks, held in Manado, Indonesia, is an important part of official preparations for the 15th United Nations Framework Convention on Climate Change, Conference of the Parties, to be held in Copenhagen in December 2009.

E-mail or fax the Publications Unit at + 632 636 2648 to order copies of this document. Applicable shipping cost will be charged.

Books, Periodicals, Studies, and Reports
ISBN: 978-971-561-867-0
Publication Date: May 2009
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Antara signs news exchange cooperation with Taiwan

Antara News, Wednesday, December 16, 2009 04:50 WIB

72nd ANTARA Anniversary- Vice President Boediono (middle) flanked by State Minister of BUMN, Mustafa Abubakar (right) and President Director of Perum LKBN ANTARA, Ahmad Mukhlis Yusuf (left) entered Adhiyana room at Wisma Antara in Central Jakarta, on Monday (14/12) before presenting his speech at the 72nd ANTARA Anniversary. (ANTARA/R.Sukendi/Kunto)

Jakarta (ANTARA News) - LKBN Antara, the national news agency of Indonesia, signed two cooperation agreements in news exchange with Radio Taiwan International (RTI) and the Central News Agency in a bid to intensify the dissemination of information in Indonesia and Taiwan.

"We have to expand the wings of cooperation with many media either representating radio stations or news agencies of other countries in order to give color to the news being handled, so that the promotion of Indonesia to foreign readers will run as expected," Dr Ahmad Muchlis Yusuf, president director of LKBN Antara, said after the signing ceremony here on Tuesday.

Antara as a news agency had the right to expand its cooperation with other media in other countries, and as long as the cooperation benefits the promote of Indonesia, let it run unhampered, he said.

"Our company will also be friendly to whoever wishes to cooperate with us," he stressed.

In the meantime, Sunshine Kuang PhD of Radio Taiwan International said warmly welcomed the cooperation in news exchange with Antara, as her radio station had a broadcasting program in the Indonesian language.

"The number of Indonesian listeners in Taiwan is quite big and therefore we have to provide an Indonesian broadcasting service," she said.

Hung Chien-chao, Ph.D, of the Central News Agency, said that the cooperation in news exchange has long been awaited, but the dream came true today. Indonesia with a vast land and sea territory, has a better implementation of democracy which should be informed to its people.

"Opening the door to information from Indonesia to Taiwan is better than closing it to outsiders. At least, such misunderstanding could be avoided," he said.

In a global era, many media need to be proactive, to enable them to easier handling hardship and competition.

Starting a Business in Indonesia? Yogya’s the Place to Be

The Jakarta Globe, Irvan Tisnabudi

Yogyakarta is the easiest city in Indonesia to start a business in, way ahead of Jakarta, which ranked just seventh of 14 Indonesian cities in a new survey.

The study, released on Tuesday by the International Finance Corporation, also revealed that Manado and Makassar would hold their own globally as business-friendly destinations.

“This survey indicates that certain cities have been efficient in helping businesses grow,” said Adam Sack, Indonesia country manager for the IFC, which is part of the World Bank.

The survey measured how long it takes to obtain a construction permit or register a business in various Indonesian cities and compared regulations with 182 other economies worldwide.

Yogyakarta only requires eight procedures to get a building permit, putting the city fifth in the world in that category. Jakarta, on the other hand, is more cumbersome, requiring 14 procedures.

It takes 43 days to get a business permit in Yogyakarta, at a cost of $2,271 — or about 29 percent of the national per capita annual income. The equivalent permit in Jakarta takes 64 days on average but costs less.

In Makassar, the capital of South Sulawesi, it takes only 56 days for businesses to get a construction permit, ranking it ninth globally in that category. In Manado, it takes 12 days for a business to formally register its property, ranking it 24th globally.

In September, Indonesia was ranked 122nd out of 183 countries in an IFC survey on the ease of doing business. Singapore topped the list, Thailand was 12th and Malaysia 23rd.

They city survey was conducted jointly by the IFC and Regional Autonomy Watch, and endorsed by the State Ministry for Administrative Reform.

Sandiaga Uno, chairman of small- and medium-sized enterprises at the Indonesian chamber of commerce, said other factors should be considered in ranking cities. “Even though several cities do well in global rankings on the ease of starting a business and gaining permits, if there was a global list covering ease of acquiring land for businesses, Indonesia would rank very poorly,” he said.

Only three state firms to go public in 2010

Nani Afrida, The Jakarta Post, Jakarta | Tue, 12/15/2009 8:10 PM

State Enterprises Minister Mustafa Abubakar confirmed Tueday that only three state companies — construction company PT Pembangunan Perumahan, flag carrier PT Garuda Indonesia and steel maker PT Krakatau Steel — qualified for privatization through an initial public offering (IPO) in 2010.

PT Pembangunan Indonesia would be privatized in the first semester of 2010, while Garuda Indonesia and Krakarau Steel in the second semester, Mustafa said.

“Garuda will go public in the middle of 2010, probably in June, while Krakatau Steel will follow in the second semester,” he said.

He said the government would also watch the condition of the steel market, particularly after the ASEAN-China Free Trade Agreement (FTA) takes effect on Jan. 1, 2010, before deciding on when Krakatau Steel could go public.

Mustafa acknowledged that the FTA would influence domestic steel prices, as steel imported from China would be cheaper than Krakatau's.

“We have to see how the FTA progresses, and then we can talk about the Krakatau IPO,” he said.

Mustafa also confirmed that the government would delay the privatization of state plantation firms PT Perkebunan Nusantara (PTPN) III, PTPN IV and PTPN VII. The privatization of these companies through IPOs was previously slated for next year.

“These companies still need support from the government,” he said.

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EMP plans $196m investment in 2010

The Jakarta Post, Jakarta | Tue, 12/15/2009 10:09 PM

PT Energi Mega Persada (EMP), the nation’s second-largest publicly listed oil company, is targeting capital spending of US$196 million in 2010, derived mostly from a planned rights issue to commence in January.

The rights issue is expected to raise Rp 4.8 trillion ($502 million) in proceeds.

Of that amount, EMP vice president for capital markets Herwin H. Hidayat said Tuesday, $111 million would be used to help finance the company’s capital expenditure, while the rest would come from EMP’s internal cash flow.

“The capital spending will be allocated for operating expenditure for all our operating blocks,” EMP president director Imam P. Agustino said during a public exposé in Jakarta.

He added the company was also looking to acquire more assets in Indonesia and abroad, but did not elaborate.

EMP’s blocks, which include the Kangean block, Malacca block and several others, produce a total of 13,000 barrels of oil per day (bpd) and 88 million standard cubic feet of gas per day (MMSCFD).

“Thirty to 50 percent of the capital expenditure will be spent on the Kangean and Malacca blocks,” Herwin said.

He added the money generated from the planned rights issue “would change the faith of the company” that has seen year after year of losses. (adh)

Denmark extends $10m grant for good governance in RI

Veeramalla Anjaiah, The Jakarta Post, Jakarta | Tue, 12/15/2009 9:45 PM

At a time when the world is focused on Denmark regarding climate change talks, the same Denmark is focusing on fostering democracy through enhancing good governance in Indonesia.

Royal Danish Ambassador to Indonesia Borge Petersen on Tuesday announced a US$10 million Danish government grant for good governance programs in Indonesia.

During a ceremony held Tuesday at his residence in Jakarta, Ambassador Petersen signed separate agreements with representatives from the Transparency International Indonesia (TII), the Asia Foundation and the Kemitraan (Partnership for Governance Reform).

Money from this grant will also go to Semarang-based Jakarta Center for Law Enforcement Cooperation, an agency devoted to improving professional standards of law enforcement agencies in combating transnational crimes.

With the Danish government’s assistance, the TII will implement a project to improve good governance and reduce corruption. Meanwhile, Kemitraan will focus on a five-year program on leveraging and educating on accountable democracy.

KSW eyes exports of 70,000 safety shoes per month

Fadli, The Jakarta Post, Batam | Tue, 12/15/2009 9:21 PM

Safety shoes producer King's Safety Ware (KSW), Batam, said Tuesday it targets to produce 70,000 safety shoes a month next year, to meet demand from European countries, up from 40,000 a month this year.

KSW Batam managing director Sasmita Winata said the Netherlands and Germany had ordered shoes from its factory this year.

“The competition is very tight, but we are optimistic that we can produce more next year since we will acquire a German shoe producer so we will be more acceptable in the European market,” she said.

Between 2007 and 2009, KSW made 8 million pairs of safety shoes, she said.

Google To Lay Undersea Telecom Pipes To Asia (GOOG)

Silicon Aley Insider, Alaska Miller|Dec. 14, 2009, 4:40 PM

Google and a consortium of five telecommunication firms have joined together in a $400 million project to connect southeast Asia with the fastest undersea fiber-optic pipe in the world. The project is called Southeast Asia Japan Cable.

This investment is the second major undersea telecom project undertaken by Google.

Previously, Google joined another international consortium to build a trans-Pacific bandwidth pipe code-named Unity.

That project cost $300 million and took two years to connect a 6,200 mile pipe from Los Angeles to Chikura, Japan. Unity is now in the testing phase and will be officially online in early 2010. It's capable of delivering 960 gigabits a second from each of its 5 fiber optic lines.

The SJC will initially connect Singapore, Hong Kong, Indonesia, Phillipines, and Japan to provide 17 terabits per second of bandwidth, upgradeable to 23 Tbps. When finished the SJC will provide the fastest connection in the world.

Google's investment are not typical. Most content providers simply lease bandwidth access. Google's involvement stems from its belief that major growth in Internet use in Asia in the coming years warrants direct investments. Google will not divulge how much money it has paid in both projects.

Today over 738 million Internet users originate from Asia. China has 338 million users. With those numbers it makes sense for Google to heavily invest into the telecommunications projects.

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PLN secures $371 million loans from Chinese bank

Antara News, Tuesday, December 15, 2009 04:35 WIB

Jakarta (ANTARA News) - The Bank of China has agreed to extend US$371.5 million in loans to state electricity company PT Perusahaan Listrik Negara (PLN) to finance the construction of the Tanjung Awar-Awar steam power plant in East Java.

The loans were fully supported by Sinosure, a government export credit insurance agency in China, PLN President Director Fahmi Moechtar said on Monday.

The loans, payable in 13 years including a grace period of 3 years, carried a floating interest rate based on the London Interbank Offered Rate (LIBOR), he said.

PLN and Bank of China signed a loan agreement in the presence of Finance Minister Sri Mulyani on Monday.

Also on Monday, PLN signed an agreement with state-owned Bank Mandiri, Bank BNI and Bank BRI and privately-run Bank BCA for a syndicated loan of Rp5.88 trillion to finance the construction of four steam power plants and transmission projects.