Indonesia Hopes to Complete Climate Action Plan Next Month

Jakarta Globe, Fidelis E. Satriastanti, January 28, 2010

Yudhoyono committed to reducing carbon emissions through land use change and better forest management to avoid fires. (Photo: Michael Booth, AFP/IFAW)

Indonesia will complete its national plan of action for emission cuts before February 20, the Coordinating Minister for the Economy Hatta Rajarsa said on Thursday.

During last year’s G-20 meeting in Pittsburgh, President Susilo Bambang Yudhoyono made a pledge to cut the country’s emissions by 26 percent by 2020 and said that with international assistance the country would aim to reduce its emissions by 41 percent.

“We are determined that this should be finalized before February 20 to show that Indonesia is very serious about its emission plans,” said Hatta, who is also the deputy head of the National Council on Climate Change.

He added that the council had a detailed breakdown on how to reach the 26 percent target from each sector.

“We have all the details, such as what the forestry sector and energy sector need to do, and how much it will cost,” he said, adding that the government would also be preparing for the nation’s emissions to be able to be measured and verified as being in agreement with those from the United Nations Framework Convention on Climate Change (UNFCCC).

Meanwhile, Rachmat Witoelar, executive head of the Council, said Indonesia will send its notification to be a part of the Copenhagen Accord following December’s international climate talks, but will deliver emission details at a later date.

“The submission deadline on the Accord is a soft deadline, we’ll say that we associate with the accord but details will follow later,” he said, adding that developing countries are not obliged to submit any details concerning their emission cuts.

Eka Melissa, deputy chair of a working group on international negotiations at the council, said that there were no sanctions if parties were not able to submit anything by the January 31 deadline.

“Based on the Accord, developed countries are supposed to submit their targets for emission cuts, while developing countries only have to submit their action plans for mitigation, called NAMAs,” Eka said.

“However, we have just finished meeting with the coordinating ministers and just got the national plans from Bappenas (the National Development Planning Board), so it will take time to coordinate with each sector (about the details to be provided to the UNFCCC).”

She said that they will try to submit on the due date, but still need the approval of cabinet before submitting to the UNFCCC.

“We are also still pursuing the UNFCCC on the mechanisms of this submission, but we’re serious (about the emission cuts). However, we won’t be giving that many details to the UNFCCC,” she added.

Obama May Visit Central Jakarta Development Project During Indonesia Stay

Jakarta Globe, Matthew Theunissen, January 28, 2010

A Central Jakarta community development project is being touted as a potential stop for US President Barack Obama during his planned visit to Indonesia this year.

The project in North Petojo’s RW 08 neighborhood, which receives funding from USAID, was host to a raft of high-profile officials on Wednesday, including Coordinating Minister for People’s Welfare Agung Laksono and Pradeep Ramamurthy, the United States National Security Council senior director for global engagement.

Senior USAID workers said it was likely that the White House officials had visited the site to assess its suitability as a place for President Obama to visit, though Ramamurthy would not confirm whether this was the case.

Ramamurthy said the project was an exemplary one and illustrated how the United States’ aid money could be spent effectively in Indonesia.

“I enjoy seeing how we are working in poor Indonesian neighborhoods and it is important to see how our work is affecting people in these communities,” he said.

What he saw at the site had been “very encouraging”, he added.

The neighborhood is inhabited by 3,321 people, one third of whom live below the poverty line.

USAID and community partners began working on the project in 2006 and have been involved in developing environmental, maternal and child health, sanitation, clean water and waste management programs.

One of program’s successes is a public sanitation facility now being used by 50 percent of residents, which consists of a biodigester to process feces and produce methane gas suitable for cooking fuel.

The development project, which is located near the US Embassy, was visited by US Secretary of State Hillary Clinton in February 2009.

Investment falls, as reforms incomplete

Andi Haswidi, The Jakarta Post, Jakarta | Thu, 01/28/2010 10:36 AM | Business

Foreign direct investment, which makes up the bulk of direct investments each year, fell 27.2 percent in value last year as total cumulative investment only stood at Rp 97.38 trillion (US$10.82 billion) by the end of December.

Approximately 40 percent of total foreign investment came from Singapore, followed by the Netherlands with 11 percent, Japan with 6 percent, South Korea with 5.8 percent, the UK with 3.4 percent and the rest from other countries.

The Investment Coordinating Board (BKPM) says the main factor behind this poor performance was the state of the global economy and the time-lag between investment commitment and disbursement, reflecting complicated procedures.

In a bid to simplify and speed up bureaucratic procedures, the board has been given the legal authority to take over official functions from 15 other government departments, for example in the issuing of permits and licenses, targeting to slash the time needed to complete such procedures from 70 days to 40 days.

The administrative reform program to do this is now nearing completion, BKPM chairman Gita Wirjawan said.

“We have completed the process for the delegation of authority from 13 ministries, the last two will be signed on Wednesday,” he said Tuesday night.

The board has launched a so called One Stop Shop (PTSP) for all business licensing procedures at all its regional branches and an electronic licensing and information service (SPIPISE) -- also known as the National Single Window for Investment (NSWi).

“So far, the SPIPISE has only been implemented in Batam. The rest of the regions will soon follow,” Gita said.

The new electronic system, he said, has two benefits: bypassing complicated procedures and document handling for investment procedures while facilitating that investors need not be present in Indonesia to deal with all the licensing process, but can also complete key procedures online.

“This year we expect total investment value to pick up between 10 and 15 percent,” he said.

Sofyan Wanandi, chairman of Indonesia’s Employers Association (Apindo) which also often serves as a point of liaison for foreign investors, praised the progress of the investment reform agenda.

“If the plan goes well, it will be very useful, but we haven’t actually felt the benefit of the electronic system because it’s new,” he commented briefly.

The progress of reform in business licensing services, Gita said, was in line with the momentum of Indonesia’s improving economic fundamentals, which has led to the improvement of the country’s sovereign risk ratings.

Fitch Ratings upgraded Indonesia’s long-term foreign and local currency ratings on Monday to BB+ from BB, one level below investment grade, citing the country’s resilience in the global financial crisis.

Fitch says Indonesian companies are likely to benefit from improved profitability and external debt leveraging following recovery from the Asian financial crisis and favorable relationships between local firms and affiliated parent companies.

Moody’s Investors Service on Jan. 21 maintained its Ba2 rating for Indonesia, while Standard & Poor’s raised the outlook on its BB- rating for the country to BB+ on Oct. 23. S&P’s rating is three levels below investment grade, while Moody’s is two levels below investment grade.

“There is no reason for us not achieving investment grade within the 24 to 36 months ahead, especially if we see the [improved] trajectory of our economic growth,” Gita said.

Wiwig Santoso, head of treasury at Bank DBS Indonesia, said the Fitch Ratings upgrade had been expected by many market participants.

“We expect the pending pipeline of investment projects to materialize, on top of the already projected investments.” Wiwig said.

He added that although the corporate credit spread for Indonesia is still relatively high, the spread on Indonesian assets do offer a lucrative return for investors.

Indonesia to launch infrastructure finance firm

Reuters, Wed Jan 27, 2010 12:27pm GMT

JAKARTA, Jan 27 (Reuters) - Indonesia will launch a new private infrastructure financing company within the next two months to speed development of sorely needed infrastructure, but with initial capital of just $170 million.

Poor roads, energy and transport infrastructure have limited growth and investment in Southeast Asia's largest economy, but many vital infrastructure project proposals have stalled due to a lack of funding.

The government said on Wednesday it would launch in March PT Indonesia Infrastructure Finance, to provide funding, equity participation or financing guarantees for private infrastructure projects.

"We have already signed an agreement with some donors to help with initial capital," the new firm's interim director, Emil Dardak, told reporters.

"We are aiming for some long term infrastructure projects including power, toll roads, water, seaport and airport projects and they must be commercially viable," Dardak said, adding the agency is yet to consider any infrastructure project proposals.

It has initial capital of 1.6 trillion rupiah ($170.3 million) from shareholders including state infrastructure financing agency PT Sarana Multi Infrastruktur, the World Bank's International Finance Corporation and the Asian Development Bank (ADB).

Dardak also said the agency has secured the equivalent of 2 trillion rupiah convertible subordinated loans from the World Bank and Asian Development Bank (ADB), maturing in 20-25 years to help the agency's financing business.

"Later on they will need to raise much more funds, by issuing some bonds for example," said Anton Gunawan, chief economist at Bank Danamon in Jakarta. "It's not enough on its own to develop infrastructure, the need is very big."

A need for infrastructure development is one of the reforms seen by analysts as needed to help Indonesia achieve an investment grade sovereign rating, a prospect drawing investors into the country's bond and currency markets.

President Susilo Bambang Yudhyono last year promised to spend $140 billion over five years on infrastructure as part of an effort to boost Indonesia's economic growth to 7 percent or more by 2014, up from an expected 5.5 percent in 2010.

The government has said it will offer new incentives for infrastructure investors and has also launched a $1 billion fund for investment in environmentally friendly infrastructure.

An Association of South East Asian Nations (ASEAN) fund to support infrastructure projects in the region is also expected to be set up this year with initial capital of $1 billion, with contributions from Japan, China, South Korea and the ADB.

(Reporting by Dicky Kristanto and Sunanda Creagh; Editing by Neil Chatterjee)

Government Gets To Work Designing ID Card

Jakarta Globe, Camelia Pasandaran, January 27, 2010

Following promising tests in several major cities, the government on Wednesday established an inter-ministerial team to create the design for the single electronic ID card project, which is estimated to cost Rp 6 trillion ($642 million).

Home Affairs Minister Gamawan Fauzi said his office is now working on the design of the project, known as E-KTP, in coordination with other ministries and government bodies.

“We need to be careful with the budget because it requires around Rp 6 trillion,” he said. “[The Corruption Eradication Commission] has warned us to be careful.”

Vice President Boediono officially unveiled the team, which consists of 15 representatives from different bodies, including the Finance Ministry, the National Development Planning Board (Bappenas), Central Statistics Agency (BPS), the Communication and Information Ministry and the Agency for Assessment and Application of Technology (BPPT).

The E-KTP has been long planned as part of a government initiative to give every citizen a single 16-digit identity number.

The prototype card contains 37 categories of information, including marital status, blood type, parents’ name and employment, physical or mental disabilities, birth certificate, divorce certificate, place and date of birth, biometric finger prints of all fingers and a photograph.

Most of this information will be stored electronically. The card will display a photo, name and identity number.

The central government has tested the new ID card in pilot projects in Denpasar, Makassar, Padang and Yogyakarta. The Jakarta city administration has run its own testing program.

Gamawan said early evaluation of the pilot projects was promising.

“The pilot projects shows good compatibility of technology used to exchange data from one region to other regions,” he said. “We tested whether finger prints in Bali could be read in Jakarta. It shows that the data could be opened here.”

Gamawan said the program would be expensive, but it would help the government save money in the longer term.

“One of the big applications is for the voter-registration process. We won’t need to fight about the voter list again. We can save a large amount of money,” he said.

He said the central database would be backed up in two other cities to help protect against identity theft and cyber attacks.

“We will have other places to back up the data, such as in Batam,” he said.

“As for identity stealers, we have planned a good security system that will be hard to be break.”

Govt gives Emaar the boot, looks for new funds

Andi Haswidi , The Jakarta Post | Wed, 01/27/2010 3:37 PM

The government has decided to terminate all commitments with Dubai-based Emaar Properties on a plan to build a US$600 million mega-tourism project in Lombok, West Nusa Tenggara.

Investment Coordinating Board (BKPM) chairman Gita Wirjawan said Tuesday that Emaar had failed to meet its share of the bargain in developing the project.

Gita said the government, represented by the West Nusa Tenggara government, had followed through with its commitments, including building an airport - to be completed in June - a 31-kilometer road connecting Mataram to the airport and an 18-kilometer road from the airport to Kuta Beach.

"*Emaar* failed to reciprocate in kind. We have taken this decision to ensure fairness and we will look for other possibilities," Gita said.

The mega-tourism project has been marked by finger-pointing since Emaar signed a joint venture agreement with the Bali Tourism Development Corporation (BTDC) in March 2008. The agreement included establishing a joint venture company called Emaar Lombok.

Emaar claimed last year that the Indonesian government had failed to follow through with some of its promises, citing in particular the clearance of a 1,200-hectare area of land required for construction.

In October, Alwi Shihab, Indonesia's special envoy to the Middle East, who also worked extensively on the project, said the land dispute was solved and that the project would follow through.

Further development showed that around 1,000 hectares had been set aside by the government for the project but still required certification from the National Land Agency (BPN), while the remainder still belonged to local residents.

A disagreement surrounding the company's investment contributions and ownership in the joint venture has also overshadowed the project.

State SOE Minister Mustafa Abubakar said earlier this month the deal with Emaar had expired, but the company would be given a chance to sign a new deal.

Both parties had agreed to a Dec. 31 deadline to solve the numerous problems plaguing the project. Mustafa said the deadline would not be extended but said he was willing to have fresh talks with Emaar about restarting the much-delayed project.

Gita hinted that the decision to kick Emaar out of Lombok was also in the interest of the property company as it was currently struggling from the impact of the financial crisis.

"Dubai World has been heavily affected by the financial crisis. They have to restructure $59 billion in debt. This will have repercussions on Emaar, which is based in Dubai.

"The company also embarked on massive projects in Saudi Arabia and the United Arab Emirates. There are a financial limitation. Secondly, they prefer to focus on settling their problems in the Middle East," Gita said.

No Emaar official was available for comment Tuesday.

Gita said his office had been in talks with investors interested in replacing Emaar.

"We have met with interested investors. One from the Middle East and another from outside the region," he said, refusing to elaborate further.

West Nusa Tenggara province, located just east of Bali, has become the central focus of the ministry's tourism programs, with a specific program aiming to draw one million tourists to the province by 2012.

The province is rich in marine life and will be developed as the center for the pearl trade and ecotourism. Famous Lombok tourist sites include Senggigi Beach, the three Gili islands, Mt. Rinjani and Lake Segara Anak.

Tourist spots in the more secluded Sumbawa Island include Mt. Tambora, Moyo Island, Jelenga Beach and Maluk Beach.

News focus: Sail Banda 2010 supported by many parties

Antara News, Otniel Tamindael, Wednesday, January 27, 2010 16:06 WIB

Jakarta (ANTARA News) - The upcoming international marine event "Sail Banda 2010" in Maluku, scheduled from July to August, has gained support from various parties.

Support to make the event a success came among others from Maluku-born people in the Netherlands, Bank Indonesia, as well as air and sea transportation agencies.

In the Netherlands, Maluku-born people are ready to support the Sail Banda 2010 by intensively promoting it in European countries, a Maluku tourism official said.

"At least 350 Moluccans in the Netherlands have expressed their readiness to intensively promote the coming event in Holland and other European countries," head of Maluku`s Culture and Tourism Office, Florence Sahusilawane, said in Ambon on Wednesday.

Florence said the expatriate Maluku people had expressed their readiness to her when she attended the Dutch tourism event, "Vakantiebeurs" in Utrecht, the Netherlands, last January 12-17, 2010.

"The most important thing in their support to Sail Banda 2010 is that they will also come to Maluku along with their relatives, Dutch friends, and other colleagues from Europe for the event scheduled for July to August 2010," she said.

Florence added that she highly appreciated the seriousness of Moluccans in the Netherlands to help make Sail Banda 2010 a success because it would be a strategic event to assure the international community that peace and calm have returned to Maluku after the province was engulfed by a communal conflict from 1999 to 2002.

"We actually want the Netherlands to be the gateway for netting West European tourists who increasingly visit Maluku every year," Florence said.

She was also optimistic about the promotion of Sail Banda in Europe because the Maluku Museum director in the Netherlands, Dr Huib Akihary, had expressed readiness to help promote the event in European countries.

"Therefore, leaflets on Sail Banda in Dutch and English will be spread large and wide in the Netherlands and other European countries," Florence said.

She said the Maluku Culture and Tourism office had been intensively promoting Sail Banda 2010 through brochures, leaflets, both print and electronic media, including its website www.sailbanda.com.

"We have also made use of various events such as the observance of World Peace Day on November 25, 2009 and the election of tourism ambassadors on December 1-6, 2009 to promote Sail Banda 2010," she said.

Besides Maluku-born community in the Netherlands, Bank Indonesia (the central bank) of Ambon branch is to open money changer counters and ATM booths in Banda to support the international marine event.

"Bank Indonesia and a number of banks such as Bank BRI, Bank Central Asia (BCA), and Bank BNI will also provide services for financial transactions in Banda to support the event," Ambon branch Bank Indonesia spokesman Totok Hermianto said in the eastern Indonesian city of Ambon on Monday.

Totok admitted that he had discussed the event with the leaders of the banks operating in Ambon and they agreed to open banking service counters in Banda.

"Foreign tourists visiting Banda, as well as the participants of Sail Banda 2010 will find it easy to make financial transactions following the opening of banking service counters in Banda during the international marine event," Totok said.

He expressed hope that the promotion of Sail Banda 2010 would be intensified in order to have a good impact on the improvement of Maluku economic development in the future.

"All public elements should support the event together by making an all out promotion so that it can have a positive impact on regional economic development and the local people`s income," Totok said.

Meanwhile, Transportation Department`s Air Transportation director general Herry Bakti has said his office was ready to support the sailing festival, named Sail Banda 2010, because according to him, inter-department coordination was necessary to support the success of the international event.

"In principle, the Transportation Directorate General is ready to support the event," he has said in Bandaneira, Banda, Maluku.

The most important thing is to prepare reliable telephone and internet infrastructure. This can facilitate communication and telecommunication access so that people would not all gather in Ambon if they want to promote Banda," he said.

Sail Banda, he said, needs to be supported by a maritime armada with the capacity and speed that can sail across 159 miles from Ambon to Bandaneira in at least three to four hours.

Herry was of the view that Banda has under-sea tourism asset as well as a history and culture with particular characteristics. If managed professionally, Banda can attract many tourists.

The national shipping company PT Pelni is also ready to help make the Sail Banda 2010 event a success by putting more ships into service on its route to the Banda Islands in Central Maluku, a spokesman said.

Bachtiar, head of PT Pelni`s Ambon branch office, said in Ambon that the national shipping company felt it bore the moral responsibility to support the international maritime event in Banda.

"We at PT Pelni are ready to help make the event a success," Bachtiar said.

He said the company was currently operating MV Ciremai and MV Kelimutu on its route to Banda in Central Maluku, Tual in Southeast Maluku, and a number of ports in West Papua and Papua.

Asked if the number of ships for Banda would be increased in the runup to Sail Banda 2010, Bachtiar said it was the responsibility of PT Pelni`s head office to decide.

"But because Sail Banda 2010 is an international event, I think there will be a good coordination between the transportation ministry and PT Pelni to increase the number of ships sailing to Banda," Bachtiar said.

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A`lian investor interested in Gorontalo`s mining

Antara News, Wednesday, January 27, 2010 15:58 WIB

Gorontalo (ANTARA News) - Besides Japanese and Malaysian, an Australian investor has also expressed interest in cooperation in the mining sector in Gorontalo province.

Brian, the Australian investor, said here on Wednesday he would like to invest in the mining sector in Gorontalo because the province had a lot of gold deposits which had yet to be exploited.

"If the Gorontalo provincial administration accepts our offer, we will in the near future invest in this sector here," Brian said.

In response to Brian`s statement, Gorontalo Governor Gusnar Ismail said he welcomed the Australian`s offer.

"But we advise the investor first to survey the mining areas in Gorontalo where they intend to invest," the governor said, adding that in administrative matters the local government would help through a coordination with Gorontalo Regional Investment Board.

The governor expressed hope that the intention of the Australian investor to invest in Gorontalo would be realized on condition that it would be in accordance with existing regulations, namely acquiring the permit from the forestry ministry and the energy and mineral resources ministry.

"And the most important thing is that the gold mining activity should not cause environmental pollution," the governor said, adding that he would soon observe a gold mining area with around 1,000 workers in Kotamogabu, North Sulawesi.

BI donates Rp 1.7b to post-quake reconstruction of private schools in West Sumatra

The Jakarta Post | Wed, 01/27/2010 10:52 AM

Bank Indonesia's branch in Padang, West Sumatra, has donated Rp 1.7 billion (US$182,000) to the reconstruction of private schools in the province, which was hit by a 7.9-magnitude earthquake in September last year.

“We donated to private schools because the government has been prioritizing [the reconstruction of] state schools, while many private schools were also damaged,” said Apep M. Komarna, a BI official at the branch, as quoted by tempointeraktif.com.

The central bank branch will distribute the aid to a total of 62 schools in Agam, Pesisir Selatan, Pasaman Barat, Pariaman, Padang Pariaman and Padang regencies.

The powerful quake devastated much of West Sumatra on Sept. 30, 2009, killing at least 1,117 people and destroying more than 114,000 houses.

Australia, Indonesia commence new student exchange program

Antara News, Wednesday, January 27, 2010 12:14 WIB

Jakarta (ANTARA News) - People-to-people link between Australia and Indonesia received a boost this month with the commencement of a new student exchange program.

An Australian Embassy media release made available to Antara on Wednesday said the program was aimed at providing development studies for students in Australia to have the opportunity to work and experience life in Indonesia through the study of the Indonesian language and a four week internship program.

The Development Studies Professional Practicum, run by the Australian Consortium for "In Country" Indonesian Studies (ACICIS), runs from January 4 to February 12, 2010 and offers the opportunity for students to gain experience working in the field of international development, while at the same time learning about development issues in Indonesia.

The pilot program is being run in parallel with the Journalism Professional Practicum, now in its third consecutive year and which provides journalism students the opportunity to work in the media sector in Indonesia.

Australian Ambassador to Indonesia Bill Farmer congratulated ACICIS and its Indonesian partners, particularly Atma Jaya University, on the programs at a reception in Jakarta on Tuesday.

"These programs provide a valuable opportunity for Australian university students to learn more about Indonesia and develop contacts and experience in their professional fields," Farmer said.

The two programs will see almost 40 students placed in over 20 different organizations in Jakarta operating in the media and development sector with students given the opportunity to enhance their understanding of how theories translate into practice.

"We hope students will gain a deeper personal understanding and appreciation of Indonesia and, through this program, develop a life-long interest in Indonesia as an important neighbor, partner and friend," Farmer said.

Eko Widodo, ACICIS Coordinator at Atma Jaya, said he was very proud and honored that Atma Jaya University had again been trusted to participate in this program.

"This is a unique and real program that gives opportunities for Australian students to get to know Indonesia and Indonesians at the grass-root level," Widodo said.

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Report environmental violations to 0811 932 932

Adianto P. Simamora, The Jakarta Post, Jakarta | Tue, 01/26/2010 9:00 PM

The government has launched an online system allowing the public to report environmental violations via short message service (SMS).

People can send reports of violations to 0811 932 932 or lodge them online via the State Environment Ministry website: penegakanhukum.menlh.go.id.

“We invite the public to monitor the progress of their complaints. We hope it will force the government or local administrations to do something to improve the environment,” State Environment Ministry compliance deputy Illyas Asaad said in Jakarta on Tuesday .

The ministry would, for example, receive reports on declining air quality, river pollution, or companies damaging the environment, Illyas said.

Illyas promised that his office would follow up on reports within two weeks from the time they were sent.

“We will send our auditors to the field to verify reports. Of course, we will also make it a priority to follow up on bigger cases,” he said.

The office will forward the reports it receives directly to related institutions across the country, and order them to act accordingly.

Indonesia to host Moslem Conference on climate change

Antara News, Tuesday, January 26, 2010 21:47 WIB

Jakarta (ANTARA News) - Indonesia will host an international Moslem conference on climate change, which will be the first of its kind in Bogor, West Java, on March 1-2, 2010, a committee member said.

Ismid Hadad, the head of the steering committee, said in a press conference at Kehati Foundation here on Tuesday that the conference is the following agenda of the Moslem Seven Year Action Plan for Climate Change (M7YAP) declared in Istambul, Turkey, early in June 2009.

Ismid, who is also the head of the advisory board of Kehati said the conference would discuss three issues, namely climate change and actions Moslems in the world could do and the establishment of Moslem Association for Climate Change Action (MACCA) which is aimed at becoming an umbrella organization to accommodate activities and the implementation of the seven year action plan in various countries and Moslem communities in the world.

The third issue is the planned declaration of four green cities in Moslem countries or the Al Khaer City, including Bogor in Indonesia, Madina in Saudi Arabia, Salleh in Morocco and Sanaa in Yemen.

The four cities` development will be monitored for seven years by MACCA.

Ismid said the committee would invite around 150 environment experts, academics and clerics from 30 countries with Moslem population, such as the United Arab Emirates, Brunei Darussalam, Malaysia, India, Africa, Saudi Arabia, Iran, Kuwait, Egypt, Britain and Indonesia.

Fauzi Masud from the forestry ministry said the organizer would also invite several mayors from Moslem countries, such as from Madina, Salleh and Sanaa.

Fachruddin Mangunjaya from the Conservation International Indonesia said the M7YAP had a vision of consolidating funds from Moslems in the world to be contributed to climate change actions.

Among the programs to be carried out by the M7YAP are establishing waqf bodies in the year ahead to implement their climate change plans and develop green Moslem cities in the world.

The conference will be held in cooperation with several private organizations, such as Muhammadiyah, Nahdlatul Ulama, the Indonesian Council of Ulemas, the Kehati Foundation and the Conservation International Indonesia with support from the ministries of forestry, environment, religious affairs and the Bogor city administration, the National Council on Climate Change and the Earth Mate Dialogue Center based in London.

Government to build 100 mosques in 2010

Antara News, Tuesday, January 26, 2010 20:29 WIB

Jakarta (ANTARA News) - Religious Affairs Ministry Suryadharma Ali said his office was planning to build around 100 mosques in 2010 which will be funded by the Community Endowment Fund or DAU to help Muslims in building places of worship.

The minister made the remarks at the corner stone laying function of the Nahdlatul Ulama (NU)`s building here Tuesday, adding that he has discussed such planning with President Susilo Bambang Yudhoyono.

NU is the largest Muslims organization in Indonesia.

According to the minister, a team has been learning the legal rules of the Community Endowment Funds utilization, in a bid to avoid any problem on the use of the funds in the future.

Suryadharma estimated that the Muslims` funds saved in the DAU currently reaches Rp22 trillion, adding if the legal rules are clear, only the funds interest that will be used.

Regarding the NU`s four-storey office building which needs a total funds of around Rp 5.5 billion, the Minister hoped that the building will not be used as dormitory or misused.

The minister did not mention the total number of new mosques are actually needed by Muslims accross the country. Indonesia has more than 200 million people mostly are Muslims.

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Garuda to Issue Visas in the Air

Tempo Interactive, Tuesday, 26 January, 2010 | 16:46 WIB

TEMPO Interactive, Tokyo: National flag-carrier airline Garuda Indonesia start will to offer visas on arrival (VoA) on flights on February 1st.

The program entitled “Immigration on Board" was tested on the GA881 flight from Tokyo to Denpasar on January 21.

“This is the world first visa service in the air,” said Emirsyah Satar, Managing Director of Garuda Indonesia.

Present on the flight were the caretaker Immigration Director General Muhammad Indra and the Indonesian Ambassador for Japan Jusuf Anwar.

The second trial will be held today.

With this service, tourists or those who wish to travel to Indonesia do not have to process their visas before their departure or upon arriving at the Denpasar or Jakarta airports.

To process this, passengers can buy a visa voucher after they check in at Narita Airport, Tokyo.

“A visa for 10 days visit costs US$ 10 and a visa for 30-60 days visit cost US$ 25," said Muhammad Indra.

Jusuf said he hoped that the new service would increase the number of Japanese tourists which has been in decline for the last two years.

To increase the number of visits from Japan to Indonesia, according to Emirsyah, Garuda is attempting to have direct flights from Tokyo to Jakarta.

All this time, Japanese passengers have had to go to Denpasar first.

“We hope that this year, direct flights from Tokyo to Jakarta can be operated,’ he said.

Prasidono Listiaji

Indonesia Plans $1 Billion Green Investment Fund

Jakarta Globe, January 26, 2010

The fund is intended to provide equity to help environmentally-friendly projects get bank loans. (JG Photo/Afriadi Hikmal)

Indonesia plans a $1 billion green investment fund this year to drive infrastructure developments that aid growth and help cut greenhouse gas emissions, a finance ministry official said on Tuesday.

Indonesia has promised to slash its emissions by at least 26 percent from business as usual levels by 2020 but recently re-elected President Susilo Bambang Yudhoyono has also vowed to boost economic growth to 7 percent or more by 2014.

At global climate talks in Copenhagen last month, Yudhoyono announced a plan to develop the Indonesia Green Investment Fund, which will catalyse infrastructure development that could speed economic growth, boost food and clean water production and also help cut emissions blamed for global warming.

Indonesia's sovereign wealth fund the Government Investment Unit will put $100 million into the fund and a further $900 million will come from foreign governments including Norway and Australia, plus institutional investors, said Edward Gustely, a senior adviser to the Ministry of Finance.

"We're in the initial stages but the target is to have this fund operational within this year," Gustely told Reuters, adding the fund would rival Brazil's Amazon Fund in size and scope. "There's no reason why this can't, in the next five years, scale to $5 billion or more."

Brazil launched its Amazon Fund last year to promote sustainable development and scientific research in the world's largest rain forest, with donations from European countries and the first projects unveiled last month.

Indonesia last year became the first country to launch a legal framework for a U.N.-backed scheme called Reducing Emissions from Deforestation and Degradation, allowing polluters to earn tradeable carbon credits by paying developing nations not to chop down their trees.

Indonesia's green investment fund will not offer loans or grants but rather top-up funding needed for projects where a bank lender is seeking an additional equity injection.

"Many technology providers and project sponsors don't have the balance sheet to top up the required equity needed to secure financing," said Gustely. "We would come in and play a catalyst role to ensure good projects with good asset quality, with good expertise and proper management, can be deployed and proceed."

The Copenhagen talks failed to achieve a legally binding agreement to reduce greenhouse gas emissions but projects like the Indonesia Green Investment Fund were a way for countries to take initiative at home, said Gustely.

"This is driven by how to create more food, water and energy in a sustainable fashion while trying to achieve Indonesia's growth objectives," he said.

Fitrian Ardiansyah, climate change programme director for WWF Indonesia, welcomed the fund but said more needed to be done to reduce Indonesia's greenhouse gas emissions.

"The Indonesian government heavily subsidies fossil fuels, but investment in renewable energy sources is too expensive. The government must help the private sector by making investment in renewable energy sources cheaper, which will address the problem. But at the moment coal plants continue to be built, which does not help," he said.

Reuters

Pertamina Sets Aside $1b to Buy ConocoPhillips’ Local Assets

Jakarta Globe, Reva Sasistiya, January 25, 2010

State-owned oil and gas company PT Pertamina said on Monday that it has allocated $1 billion to acquire US oil giant ConocoPhillips’ assets in Indonesia and the rest of Southeast Asia.

“We are ready to acquire all of the available assets of ConocoPhillips, not only in Indonesia but also elsewhere in Southeast Asia,” said Basuki Trikora Putra, Pertamina’s vice president of communications. “We have allocated $1 billion for the acquisition plan.”

However, Jacob Kastanja, corporate communications manager for ConocoPhilips Indonesia, said the company did not intend to divest its Indonesian assets.

“ConocoPhilips remains committed to continue its strong business presence in Indonesia. Our assets in Indonesia are not part of the current divestment plan that was announced by our head office late last year,” Jacob said. “As you know, we have just seen North Belut’s first gas and ConocoPhilips is continuing with its plan for exploration drilling in Makassar Strait and Arafura Sea in 2010 and 2011.”

ConocoPhillips revealed in October that it planned to sell off some of its overseas assets over the next two years in a drive to raise $10 billion.

However, Bayu Kristanto, Pertamina’s vice president for mergers and acquisitions, said the company had informed ConocoPhillips of its interest. It is believed that ConocoPhillips’ Indonesia assets are worth $600 million to $700 million.

ConocoPhillips has been active in Indonesia for more than 40 years and operates seven production-sharing contracts. Four of the contracts are offshore projects, including the South Natuna Sea Block B in the Riau islands, the Kuma block in the Makassar Strait and the Amborip VI and Arafura Sea blocks southeast of Maluku province. It also operates three onshore fields, including the Corridor PSC and South Jambi B blocks in Sumatra as well as the Warim block in Papua.

Pertamina is also hoping to acquire the assets controlled by France’s Total in Indonesia, Basuki said. The state-owned company has previously said it is considering issuing dollar bonds worth $1 billion and $1.5 billion next year to finance its acquisition plans.

It has allocated Rp 39 trillion ($4.17 billion) for capital expenditure this year, with plans to allocate about 70 percent for exploration and production.

Pertamina will pump an additional 7,500 barrels a day from new fields as part of a drive to boost output by 8 percent this year.

President inaugurates new toll road

Antara News, Tuesday, January 26, 2010 13:11 WIB

Cirebon, West Java (ANTARA News) - President Susilo Bambang Yudhoyono at the Mertapada toll gate here on Tuesday inaugurated the 35-km Kanci-Pejagan turnpike.

"Please use this infrastructure facility properly because it has cost a huge amount of funds belonging to the people or the state although the private sector has also invested in it," he said.

He hoped the new project would help boost the regional economy and improve public services.

The president, who was accompanied by Public Works Ministry Djoko Kirmanto and West Java Governor Ahmad Heriawan, pushed a button to activate a siren and then signed a plaque to mark the toll road`s inauguration.

On the occasion, the head of state also inaugurated several other projects such as a flood control dam in Medan (North Sumatra), Amplas fly over in North Sumatra, Oerip Sumahardjo fly over in South Sulawesi, Benel dam in Bali, Cilaki bridge in West Java, several clean water facilities, rented modest apartment in West Java and Central Java provinces, with a total value of Rp3.5 trillion.

After the inauguration ceremony, President Yudhoyono inspected the new Kanci-Pejagan toll road in his presidential car and later returned to Jakarta.

The Kanci-Pejagan toll road was constructed by PT Bakrie Land and is integrated with other infrastructure facilities in surrounding areas, such as real estate, small-and-medium scale business centers, fiber optic, gas pipelines, tap water pipelines, electricity and telephone wires.

The 35-km-long toll road was built with funds amounting to Rp2.2 trillion and was the first Trans Java highway completed as part of the government`s 100-day program.

President Director of Bakrieland Hiramsyah said his company always developed real estate and infrastructures in integrated ways.

Meanwhile, Public Works Minister Kirmanto hoped that the Kanci-Pejagan toll road would help smooth the traffic flow and add alternative routes.

The 3.5 trillion rupiah in funds were spent on among other things the Kanci - Pejagan toll road (Rp2.4 trillion), a flood-control dam in Medan (Rp818 billlion), Benel dam in Bali

(Rp107.4 billion), Ampelas fly over in Medan (Rp124 billion), 2.7-km long Oerip Sumaharjo fly over in Makasar (Rp80 billion), Cilaki bridge (Rp51.3 billion) and clean water project in West Java ( Rp13.5 billion).

CVC’s Venture Pays $771 Million to Acquire Matahari Store Unit

Bloomberg, by Widya Utami and Achmad Sukarsono

Jan. 25 (Bloomberg) -- Meadow Asia Company Ltd., a unit of U.K. buyout firm CVC Capital Partners Ltd., paid 7.2 trillion rupiah ($771 million) to buy the department store unit of PT Matahari Putra Prima, Indonesia’s biggest retailer.

Jakarta-based Matahari Putra sold its 90.76 percent stake in PT Matahari Department Store to Meadow, a venture it established with CVC Capital, Benjamin Mailool, president director of Matahari Putra, told reporters in Jakarta today.

Matahari Putra’s shares jumped 10.9 percent to 1,120 rupiah in Jakarta today, the biggest increase in almost two years. The retailer plans to buy a 20 percent stake in Meadow, with an option to purchase an additional 10 percent, Mailool said.

This transaction is “proof of foreign investor interest in Indonesian companies,” said Edwin Sinaga, president director of PT FinanCorpindo Nusa, a Jakarta-based brokerage firm. “The share surged as people expect a tender offer.”

Meadow will also buy another 7.24 percent stake in Matahari Department Store from shareholders, Matahari Putra said in a filing today on the Indonesia Stock Exchange. The agreement was signed on Jan. 23, the statement said.

Matahari Department’s shares surged 24 percent to 1,680 rupiah.

To contact the reporter on this story: Widya Utami in Jakarta at wutami@bloomberg.net; Achmad Sukarsono in Jakarta at asukarsono@bloomberg.net

US envoy praises Indonesia for sending aid to Haiti

Antara News, Monday, January 25, 2010 13:28 WIB

Jakarta (ANTARA News) - US Ambassador to Indonesia Cameron R. Hume has praised the Indonesian government for sending aid to earthquake-devastated Haiti.

"Yet this week Indonesia is making generous contributions to the people of Haiti in their greatest need. Indonesia`s extended hand is not a mere gesture. It is a significant act of leadership," Ambassador Cameron said in his statement published on the official website of the US embassy in Jakarta, Monday.

The aid for Haiti, in many ways, was similar to Indonesia`s pledge to fight climate change by reducing greenhouse gas emissions, a pledge that triggered positive promises from other governments, he said.

"Indonesia is playing a key role in creating a world community ready to respond to the challenges of the 21st century," he said.

Fate and geography make Indonesia uniquely vulnerable to natural disasters. The Aceh tsunami of five years ago made an indelible impression on the entire world, but other events as recent as last year`s earthquakes in western Java and Padang reminded the people of Indonesia`s vulnerability, Hume said.

"First, why is Haiti important? Despite its favorable location in the Caribbean, Haiti is the poorest country in the Western Hemisphere and one of the poorest countries in the world," Hume said.

Its people suffer from disease, malnutrition, wretched public services, and lack of economic opportunity. But they also have a proud history of being the second country to fight for and win their independence from colonialism, and they have a rich artistic culture. But for the past century development has passed Haiti by. There must be a way to turn around that decline, according to the US ambassador.

"Second, what does Indonesia have to offer? Quite a lot that is in greatest need, especially skill and experience: 30 doctors with a field hospital and medicine, 25 communication workers, 10 electricians, plus supplies and food. Indonesia knows how to respond to a natural disaster, and it knows that human solidarity counts. Anyone who has watched the extensive television reports from Haiti would know that Indonesia will be helping to meet Haiti`s most urgent needs," he stated.

"Third, why can`t others meet these needs? My own country, like others, has been quick to dispatch rescue workers, medical teams, and supplies - but we know that acting alone cannot be adequate. Isn`t it likely that the resourceful Indonesian who brought emergency cell phone service back to Padang might have just the skills most needed?," he said

The US ambassador said that Haiti lacked basic infrastructure even before the earthquake.

The roads, port, electricity grid, water and sanitation service, and communications are broken or destroyed by the earthquake.

"Little wonder that delivering assistance the last meter to a victim is so hard," he said.

The United Nations, including its Brazilian-led peace-keeping force, is at the center of international efforts to help Haiti. The organization has its own reasons to grieve the loss of so many able and dedicated staff.

Hedi Annabi, the Secretary-General`s special representative, died in the rubble of the UN headquarters last week.

"He was a remarkable man -- calm in crises, straightforward in discussions, dedicated to doing the good he could, able to appreciate irony, but never cynical. Others now need to step forward," Hume said.

According to the envoy, Indonesians should be proud of their government`s actions to help Haiti.

"Although Haiti is a small, poor country on the other side of the world, our future depends on leadership that brings together global responses to what might appear as local needs. Indonesia is playing its part to provide that kind of leadership, both on the ground in Haiti and at the conference tables of the climate change talks, the G-20, and elsewhere. Indonesia`s leadership makes it an important partner for the United States," he said.

`Men anpil, chay pa lou` is a Haitian proverb which means, with many hands, the burden is light. "Indonesia is lending an impressive hand to the Haitian relief effort," he added.

Aceh Hopes Modern Hospital Will Prevent Medical Tourism Among Indonesians

Jakarta Globe, Nurdin Hasan, January 24, 2010

German Ambassador to Indonesia Norbert Baas visiting a ward for premature babies at Zainoel Abidin Hospital in Banda Aceh. The German-aided hospital cost Rp 418 billion and is meant to provide top-of-the-line care for Acehnese. It was officially inaugurated on Saturday. (JG Photo/Suparta)

Banda Aceh. Aceh Governor Irwandi Yusuf and German Ambassador to Indonesia Norbert Baas officially inaugurated on Saturday what they said was the “most advanced hospital in the country.”

Zainoel Abidin State Hospital (RSUZA), which is equipped with several state-of-the-art medical instruments, including a CT Scan, MRI machine and radio-diagnostic devices, was rebuilt with aid from the German government. The facility has been receiving patients since last August.

“We say that RSUZA is the most advanced hospital in Indonesia, and its facilities can match prominent hospitals in Penang and Singapore,” Irwandi Yusuf said during the inauguration ceremony

He added that he hoped the new hospital would put an end to the practice of thousands of Acehnese going to Penang, Malaysia, or Singapore each month for medical treatment.

“Including myself, who has to opt for Singapore as a place to have medical treatment because the facilities at the neighboring country’s hospitals are far more advanced than what we have had in Banda Aceh,” the governor said. “But, considering the development, I am certain that the equipment we have now can rival hospitals abroad.”

He also encouraged the staff to prove to the public that the hospital personnel could master the hospital’s advanced machines. “A strong building and advanced equipment are not enough to make RSUZA the best hospital in terms of services for the people of Aceh,” he said.

Baas said that RSUZA was equipped with advanced infrastructure and utilized eco-friendly integrated waste management technology.

“The employees of RSUZA have been intensively trained to ensure the patients and staff can reap maximum benefits from its new facilities and equipment,” he said, adding that the hospital was also designed to weather flooding and earthquakes.

The hospital’s reconstruction was part of German aid for Indonesia, which was augmented after the 2004 tsunami in Aceh that killed 170,000 people, Baas said. During five years of reconstruction in the region, the German government has disbursed a total of 178 million euros ($251.6 million).

The development of the two-story hospital, which sits on 42,946 square meters of land, started in March 2006, funded by a 31 million euro grant from the German government through state-owned bank KfW. The German Agency for Technical Cooperation provided an additional 10.2 million euros worth of technical assistance.

Uwe Ohls, KfW’s first senior vice president of for Asia and Europe, said that the bank would continue to guide the hospital management for the next two years and would facilitate collaborations between the hospital and several universities in Germany for paramedic training courses.

The director of the hospital, Taufik Mahdi, said the facility had 350 beds, and would add 150 more this year. Since the hospital opened, an average of 600 people a day have come to receive medical treatment.