Govt to give tax relief to environmentally friendly companies

Antara News, Saturday, December 18, 2010

Yogyakarta (ANTARA News) - The Environment Ministry and the Directorate General of Taxation are planning to provide tax relief to companies using environmentally friendly technology.

"We plan to provide tax relief to companies belonging to the `green` category," Environment Minister Gusti Muhammad Hatta said here on Saturday.

Besides tax relief, the companies would also have easy access to credits from Bank Indonesia (the central bank/BI) after they had passed an environmental standard test, he said.

"Meanwhile, companies put under the `black" category for the second consecutive time will be brought to justice and companies put under the "red" category will be denied access to credits," he said.

The sanctions were expected to have a deterrent effect on companies which contribute to environmental destruction, he said.

"We are also making approaches to the Supreme Court to impose severe punishment on companies proven guilty of destroying the environment," he said.

Most companies proven guilty of heavily polluting the environment had so far received light punishment thanks to alleged legal mafia involved in the court proceedings, he said.

"President Susilo Bambang Yudhoyono himself has instructed the anti-legal mafia task force to investigate the allegation," he said.

Under Law No.32 of 2009 on Environmental Protection and Management, civil investigators of the Environment Ministry had the authority to bring `delinquent` companies to justice, he said.

Govt to issue 10,000 electronic passports in 2011

Antara News, Saturday, December 18, 2010

Jakarta (ANTARA News) - The government plans to issue 10,000 electronic passports, dubbed e-passports, in the experimental period of 2011.

"Starting on January 26, 2011, the Law and Human Rights Ministry by way of the Immigration Directorate General, will conduct the experimental period, and issue 10,000 such passports," Maroloan Jonnis Baringbin, spokesman for the immigration directorate general, said in Jakarta Friday.

He said the e-passports will be issued in limited numbers in certain areas only as pilot project, such as the first class immigration office in West Jakarta, the first class immigration office at Soekarno-Hatta airport, and the first class immigration office in Central Jakarta.

Electronic passports are using chips containing biodata of the holders and biometric data as security measure of the passports required by the International Civil Aviation Organization (ICAO) in passport issuing accredited country not later in 2015.

Australia, Indonesia strengthen relations through scholarships

Antara News, Friday, December 17, 2010

Jakarta (ANTARA News) - The Australian Embassy in Jakarta strengthens its relations through Australian Leadership Award Scholarships to 26 Indonesians doing major studies.

"We enjoy every productive relationship with all organizations which have received the scholarship," Greg Moriarty, Australian Ambassador to Indonesia, said here Thursday (16/12) evening.

The Australian envoy said that by the scholarships for the Indonesian people, Australia and Indonesia could strengthen their relations further as well as develop Indonesia.

"And I hope by studying in Australia, we can make a stronger contribution also to employers and also help develop Indonesia in the economic, social and cultures fields. In this way Indonesia may grow into a more prosperous country," he said after awarding the scholarships to some Indonesians.

The Australian Leadership Award is a regional competitive scholarship from AusAID aimed to promote knowledge, education links and reinforcing relationship between Indonesia and Australia.

The Australian government`s commitment to the Indonesia- Australia Partnership would become stronger by the increase of the number of Australia Award recipients to 500 people by the 2014.

From the 200 Australian Leadership awards, Indonesia had the honor to receive 26 grants, and four of the 26 awardees received the 2011 Allison Sudradjat Awards.

Daniel (50), one of the recipients, said he was grateful to be awarded by the Ambassador. The police dentists is going pursue bio-molecular study in Australia and hoped to implement his study in Indonesia as well.

"Bio-molecular or DNA study is the basic human origin and it helps police in conducting investigations. Later, I hoped to create a DNA test with more accurate data by spending lower fee,s" the dentist said.

RI, Malaysia launch joint CPO campaign in EU

Antara News, Friday, December 17, 2010

Brussels (ANTARA News) - Indonesia and Malaysia reached agreement to cooperate in the development of oil palm as a renewable source of energy.

The agreement was disclosed by Malaysian Plantation and Commodity Industries Tan Sri Bernard Dompok and Indonesian Deputy Agricultural Minister DR Bayu Krisnamurthi after a meeting with the European Commission in Brussels Tuesday afternoon.

The Joint Statement of the two countries of the same racial stock was made following discussions with Jane Potocnik of the European Union`s environmental commission, Connie Hedegaar of the Climate Action Commission, Guntter Oettinger of the Energy Commission and Development Committee Nirj Deva and chairman the Paolo de Castro plant development committee.

After holding the meetings, the two ministers held a dinner with members of the European Parliament and the host Martin Callanan also attended by Indonesian ambassador to Belgium, Lusemburg and the European Union Arif Havas Oegroseno.

DR Bayu Krisnamurthi said that the issues during the discussions included the directive decision of 2009/28/EC on the promotion of the use of renewable energy sources, and sustainable palm oil production.

In addition, the problem of indirect land use change (ILUC), biofuel certification, revision of renewable energy, and High Biodiversity Grassland.

For Indonesia and Malaysia the palm oil industry is very important in economic development absorbing more than eight million workers in the two countries.

Unfortunately, the palm oil industry is opposed by various public organizations engaged in the sector of environment, and many of them had no proper understanding on the benefits of oil palm for the people.

DR Bayu Krisnamurthi said the benefits of palm oil is ten times as big as the oil produced by other legumes.

The two countries agreed to develop renewable energy from palm oil with its many benefits, both for Indonesia and Malaysia, oil palm is a very important commodity.

Indonesia and Malaysia are the world`s biggest oil palm suppliers including for Europe reaching 90 pct. While 42 pct of the production in Indonesia came from the small farmers, and in Malaysia 40 pct.

The palm oil industry has managed to reduce poverty, create employment and raise the income of the people.

The Indonesian government has a great interest in the sustainable production of palm oil which in 2010 reached 21 million tons of CPO from 7.5 million hectares of oil palm estates.

In the meantime, total world CPO production reached 44.3 million tons in 2010.

There are 1.5 million small farmers engaged in the CPO industry, and many of them succeeded in raising themselves from poverty by way of oil palm.

Prior to 2000 the average income of oil palm farmers reached 1000 to 1100 euro per year, and only 37 pct produced only 600 to 700 euro per year.

In 2009 the income of the farmers doubled to 2000 euro per year, while farmers who previously have an inccome of less than 700 euro were reduced to 16 pct.

The energy produced in one hectare of oil palm land reached 3.74 tons per year with energy produced nine times as much, while soyabean only produced 0.38 tons and sun flower 0.48 tons.

The outcome of a study in Indonesia, according to chairman of the Indonesian Palm Oil Council DR Rosedana Suharto showed a default value of CPO reaching 60 pct. Therefore Indonesia felt it is necessary to hold a dialog between the European Union and Indonesia as the world`s biggest CPO producer.

The European Union set the the standard default value of CPO at 19 pct, while 35 pct is needed for biofuel. The European Union said Renewable Energy Directive of the European Union (EU-RED) is still open with inputs from various countries to enable them to produce the right policy beneficial for everyone.

RI, OZ ink A$14.5m deal to improve transport security

Nani Afrida, The Jakarta Post, Jakarta | Wed, 12/15/2010

Indonesia secured on Wednesday AUS$14.5 million from Australia to improve its transportation safety and security standards.

The signing of the Memorandum of Agreement pledging the money was attended by Indonesia's Transportation Minister Fredy Numberi and Australia's Infrastructure and Transport Minister Anthony Albanese in Jakarta.

"Australia will provide AUS$14.5 million for the next four years, starting in July 2010," Fredy Numberi said, adding that the MoU tool the form of an arrangement between the two countries called the Indonesia Transport Safety Assistance Package.

Australia granted AUS$24 million in 2007 for a similar program, which helped finance 700 Indonesians to join a training program on aviation safety.

Albanese said the new fund would finance training programs to produce transport safety inspectors and accident inspectors, as well as joint search and rescue drills.

Ciputra builds Rp 3 trillion superblock

The Jakarta Post, Jakarta | Wed, 12/15/2010

Publicly listed property firm Ciputra Property is building a Rp 3 trillion (US$333 million) superblock on 5.5 hectares of land on Jl. Prof. Dr. Satrio, Jakarta, using the concept of Singapore’s Orchard Road business district.

The company’s executive director and corporate secretary Artadinata Djangkar said in Jakarta on Tuesday that Ciputra wanted to be the pioneer to build an integrated retail and entertainment hub similar to Singapore’s famous business district of Orchard Road in Jakarta.

“We want to be the pioneer of Orchard Road’s development in Jakarta. We believe that Jl. Prof. Dr. Satrio is among the favorite roads in the city,” he told a press briefing at Ciputra World Jakarta Marketing Gallery.

The development of Jakarta’s Orchard Road started with the Capital World Jakarta project, which is equal to the size of 55 football fields.

“Capital World Jakarta will consist of a mall, entertainment and theme park, auditorium, apartments, hotel and condominiums. Up to the end of 2010, the development of the project has reached 31 percent of the overall project area,” Artadinata said.

The 14-story mall, entertainment and theme park, as well as an auditorium with a capacity of 1,200 people are expected to be open to the public in mid-2012.

In addition, 170 apartments managed by Singapore’s Ascott Group, 136 myHome condominiums, a 170-room Raffles Hotel and 88 luxurious Raffles Residences apartments will also be housed on the super block.

The super block in the busy center of the city is expected to add more traffic in the heart of the capital, but Artadinata said the government was working on an overpass that would resolve traffic issues around the Jl. Prof. Dr. Satrio area.

“From about two weeks ago, the government started its overpass project from Kampung Melayu to Tanah Abang that will reduce traffic and facilitate people coming to the center of Jakarta,” he added.

Artadinata said Ciputra would focus on the development of the Rp 3 trillion-worth Capital World Jakarta as well as another 240,000-square-meter project on Jl. Prof. Dr. Satrio, known as the Kav. 11 project, next year

“Our capital expenditure for next year will be Rp 1 trillion, mostly for Ciputra World Jakarta and the remaining for the Kav. 11 project,” he said.

Listed on the Indonesia Stock Exchange (IDX) since 2007, Ciputra currently has a total of 10 hectares of land throughout the archipelago, including Mal Ciputra and Hotel Ciputra in Jakarta and Semarang, as well as myHome apartments at Ciputra World Jakarta.

On the same day, the property giant also announced a target of 130 percent jump in net profit for the full year of 2010 to Rp 171 billion from Rp 74 billion in 2009. Artadinata expected the growth momentum to continue until next year, as the property sector is expected to boom mainly thanks to hefty economic growth in Southeast Asia’s biggest economy.

“As we all know, Indonesia’s economy is among the most attractive investment destinations this year, so the economy is expanding, affecting the property market,” he added, eyeing Rp 3.9 trillion in assets by the end of the year.

Ciputra’s shares (CTRP) soared following the outlook announcement, trading at Rp 440 apiece at 3 p.m. on the Indonesia Stock Exchange (IDX), a 1.15 percent increase. Ciputra has a total market capitalization of Rp 2.7 trillion. (est)

TNI asks Netherlands to support frigate building project

Antara News, Wednesday, December 15, 2010

Jakarta (ANTARA News) - The National Defense Forces (TNI) has asked the Dutch government to consistently support the development of a light frigate by Indonesian ship-building company PT PAL.

"Yes, we have asked the Dutch to be more consistent in supervising the development of the ship as there are things that PT PAL cannot yet do," TNI spokesman Commodore Iskandar Sitompul said here on Tuesday.

PT PAL is developing a light frigate-type missile destroyer under supervision of Dutch ship-building company Schelde.

Asked about the program after he had attended a closed-door meeting between TNI Commander Admiral Agus Suhartono and Dutch ambassador Tjeerd F De Zwaan, Sitompul said Dutch consistency in helping carry out the program was needed.

"This is done in the framework of revitalizing national defense industry especially PT PAL to meet the needs of TNI weaponry including a light frigate," he said.

The Indonesian navy is striving to improve its combat power in the framework of meeting its minimum strength requirements by modernizing its weaponry. Right now it has 154 warships of various types and the number is to be increased to 274.

With regard to that the defense ministry has launched a light fregat destroyer development program in cooperation with the Netherlands. The ministry expects to build 20 units.

The program is estimated to cost US$220 million and take four years to finish.

Besides discussing the frigate development program they had also discussed various matters relating to the two countries` bilateral relations including the relations between the two countries` armies, he said.

Chevron Says It’s Full Steam Ahead for Geothermal Expansion in Indonesia

Jakarta Globe, Ririn Radiawati Kusuma | December 14, 2010

Jakarta. Chevron Pacific Indonesia, a unit of the US energy giant, expects to “aggressively” establish more geothermal power projects in the coming years.

There is still enormous potential to develop Indonesia's
geothermal resources. (AFP Photo)

Abdul Hamid Batubara, CPI’s president director, said the company’s goal was to boost power supply in Southeast Asia’s largest economy.

“Chevron will always bid for any geothermal tenders offered by local governments in Indonesia,” he told the Jakarta Globe in an exclusive interview on Tuesday.

“Indonesia has huge potential in geothermal [energy] and Chevron will be aggressive in developing power plants.”

CPI was awarded a permit to explore and develop a geothermal field on the southern tip of Sumatra on Dec. 6.

It has already started exploration of the Suoh-Sekincau geothermal field in the West Lampung district of Lampung, according to Hamid.

He declined to comment on the cost of the exploration or the potential output from the field.

Chevron Geothermal Suoh-Sekincau is 95 percent-controlled by Chevron, while its Indonesian partner, Austindo Nusantara Jaya, holds a 5 percent stake.

The oil giant currently operates two geothermal projects in West Java that supply more than 630 megawatts of renewable energy.

The Lampung province Web site says Suoh-Sekincau boasts 430 MW of power.

Hamid said Chevron already sold electricity to state-owned utility Perusahaan Listrik Negara at a “competitive price, selling power at 7 cents per kilowatt hour — cheaper than the 9.7 cents per kwh that other geothermal power producers charge.”

“This is our strength. Our selling price is competitive,” he said. “We have experience through our West Java projects.”

However, Hamid expressed some concern over the tender process in Indonesia’s power-generation projects.

“In the Rantau Dedap geothermal field, for instance, we failed to win the tender because we did not have $10 million as a deposit, even though we are already a big company anyway,” the president director said.

Indonesia has an estimated potential of 28.53 gigawatts of geothermal reserves, according to data from the Energy Ministry. Of that figure, only around 4 percent or 1,189 megawatts has been tapped.

Given such room for growth, Hamid said there was plenty of opportunity to develop the country’s geothermal resources.

ADB $250 Million Risk Program to Help Expand Microfinance to the Poor

Asian Development Bank (ADB), 13 December 2010

MANILA, PHILIPPINES - The Asian Development Bank's (ADB) Board of Directors today approved a Microfinance Risk Participation Program, marking ADB's first large scale private sector microfinance initiative.

The program will allow ADB to partner with financial institutions that actively lend to microfinance institutions (MFIs) in ADB's developing member countries, and to share the default risk on underlying MFI loans. The proposed program will support the expansion of lending to MFIs, in turn enabling increased provision of financial services to the underserved. This will help address the significant unmet demand from the poor for financial services, and provide additional funding for micro-borrowers. Under the terms of the program, ADB will typically assume up to 50% of the default risk on loans made to MFIs, in aggregate up to a maximum of $250 million.

"Microcredit has been shown to play an important role in providing seed money for businesses and improving the lives of the poor," said Philip Erquiaga, Director General of ADB's Private Sector Operations Department. "This program will allow microfinance institutions to expand lending to segments of the population who currently lack access to funds."

The microfinance industry has boomed in recent years with Asian institutions estimated to have over 47 million borrowers as of the end of 2008, with outstanding loans of over $10 billion. Demand is enormous, with as many as 600 million to 1 billion poor workers worldwide needing services, including a large number in Asia and the Pacific, home to two-thirds of the world's poor. Microfinance businesses seeking to serve this market are hampered by limited access to finance from banks, exchange rate issues, and other barriers.

The risk sharing arrangement, proposed by ADB to a range of international and local financial institutions, will allow these participants to boost loans to microfinance institutions, which in turn will result in scaled up assistance to groups currently unable to access funds, such as poor households, women and cash-strapped small enterprises.

"Under this arrangement, commercial financing institutions which are developing microfinance operations will be able to achieve greater lending scale without overextending their risk exposure," said Mr. Erquiaga.

ADB's risk support will enable participating institutions to build up their microfinance lending operations, which will help extend the reach of the commercial microfinance sector as a whole, and contribute to the development of the private sector.

ADB has been a major supporter of the microfinance and microenterprise sector for almost two decades with up to $1.9 billion in aggregate assistance for approved projects since 1988. It has extensive experience in risk sharing activities through its Trade Finance Program, under which it provides risk coverage to international banks to support trade transactions.

About ADB

President to launch loan plan for migrant workers

Wahyoe Boediwardhana, The Jakarta Post, Surabaya | Sun, 12/12/2010

President Susilo Bambang Yudhoyono is scheduled to launch a loan program for migrant workers during his upcoming three-day visit to Surabaya.

Yudhoyono will be in Surabaya from Monday to Wednesday.

The loan plan for migrant workers aims at providing low interest credit for Indonesians before going overseas for work.

The loans would be provided by state-owned banks Bank Negara Indonesia, Bank Rakyat Indonesia and Bank Mandiri.

Each migrant worker could borrow around Rp 5 million (US$550).

RI, Mexico to Cooperate On Climate Change Issues

Antara News, Saturday, December 11, 2010

Cancun, Mexico (ANTARA News) - Indonesia and Mexico have agreed to cooperate in the handling of climate change issues such on reducing emissions from deforestation and forest degradation (REDD+) and climate change adaptation.

A Memorandum of Understanding on the cooperation was signed by Indonesian Environment Minister Gusti Muhammad Hatta and Mexican Environment Minister Juan Rabael Quasada on the sidelines of the Sixteenth Climate Change Summit here on Friday.

After the signing of the MoU, the Indonesian minister said Indonesia and Mexico would exchange experience in the handling of climate change issues.

"Mexico has its own speficic problems but it also sees that we are country playing a front line role regarding climate change," Hatta said.

He said that Indonesia would also learn a lesson from Mexico which had issued a list of an inventory on green house effects in its fifth national communication report.

In the meantime, Australia has declared itself a strong supporter of Indonesia`s efforts to address climate change and announced an allocation of $45 million to Indonesia as part of Australia`s $599 million fast start climate change financing.

According to Australian Embassy media release in its official website on Friday, Foreign Minister Kevin Rudd said his country welcomed Indonesia`s strong leadership on climate change and the opportunity to build on Australia`s long-standing cooperation with Indonesia on reducing emissions from deforestation and forest degradation (REDD+) and climate change adaptation.

"Reducing emissions from deforestation and forest degradation - which accounts for 18 per cent of global emissions and more than 60 percent of Indonesia`s total emissions in 2005 - is critical to achieving a global outcome on climate change," Rudd said.

New funding of $30 million will extend support for our demonstration work in Kalimantan and accelerate joint work on Indonesia`s National Carbon Accounting System, taking Australia`s total support for Indonesia`s REDD+ efforts to $100 million.

Indonesia, Japan Sign $24 Billion Agreement on Transport-Network Projects

Bloomberg, By Agus Suhana and Yoga Rusmana - Dec 10, 2010

Indonesia and Japan signed an agreement to build infrastructure valued at up to 2 trillion yen ($24 billion) in Jakarta as the Southeast Asian nation seeks to improve transport links to spur economic development.

Projects under the agreement include a mass rapid transit system to serve the greater Jakarta metropolitan area, developing power plants and a clean water supply, Hatta Rajasa, Indonesia’s coordinating minister for the economy, said in a statement. Development is expected to start in 2013, the statement said.

“The greater Jakarta area is a priority because it’s the country’s largest industrial area,” Rajasa said in the statement, which was posted on the official website of President Susilo Bambang Yudhoyono.

Rajasa signed the so-called Metropolitan Priority Area agreement with Japanese Foreign Minister Seiji Maehara today in Bali, Indonesia. Development is expected to start in 2013, with financing provided by local and foreign companies and through loans, the statement said.

The proposed mass rapid transit system in Jakarta will have a 110 kilometer-long (68 miles) track network to serve commuters from surrounding areas, according to information on the website of PT MRT Jakarta, the company overseeing the construction.

To contact the reporters on this story: Agus Suhana at asuhana1@bloomberg.net; Yoga Rusmana in Jakarta at yrusmana@bloomberg.net

To contact the editor responsible for this story: Berni Moestafa at bmoestafa@bloomberg.net

Finland to fund sustainable energy from forests in Indonesia

Reuters, By Chris White, JAKARTA | Fri Dec 10, 2010

An aerial view of deforestation at Indonesia's Sumatra island, August 5, 2010.
(Credit: Reuters/Beawiharta)

(Reuters) - Finland is aiming to set up an scheme to produce renewable biomass energy from Indonesian forests next year, following in the footsteps of a lauded Norwegian agreement to tackle Indonesia's high deforestation.

Finland's scheme, with initial investment of four million euros, is small compared to the $1 billion pledged by Norway, but is a sign more countries may look to do bilateral deals if U.N. talks in Cancun fail to produce a global climate pact.

Australia said on Thursday it would increase its spending on climate change financing by giving Indonesia an additional $45 million for projects to reduce emissions from deforestation and degradation (REDD) and for climate change adaption.

Protecting forests is seen by some as the easiest and cheapest option in the fight against climate change. The Finnish project aims to support the forestry industry turn toward renewable energy production.

"The focus will be on the utilization of forest biomass and the residues of the wood processing industry as renewable energy sources," Päivi Alatalo, the deputy head of the Finnish embassy in Indonesia, told Reuters.

The projects are to be established in the regions of central Kalimantan on Borneo island and Riau province on Sumatra island, areas that have seen intense deforestation in recent years by timber and palm oil firms, both legally and illegally.

Indonesia has been pushing on the global stage for greater support in its efforts to reduce the costs of deforestation, though environment minister Gusti Muhammad Hatta rejected a proposal by Japan in Cancun this week that developing nations agree to legally binding targets to reduce emissions.

Indonesia has promised to slash its emissions by at least 26 percent from business as usual levels by 2020 but President Susilo Bambang Yudhoyono has also vowed to boost economic growth to 7 percent or more by 2014, with development of resources from palm oil to coal helping drive the economy.

Other big developing nations have rejected binding targets for a climate deal that developed nations want before they sign up to a pact to replace the Kyoto Protocol, in a rich-poor rift that has haunted the talks to agree a new global climate deal.

"Reducing emissions from deforestation and forest degradation, which accounts for 18 per cent of global emissions and more than 60 percent of Indonesia's total emissions in 2005, is critical to achieving a global outcome on climate change," said Australian foreign minister Kevin Rudd in a statement.

So far over $4 billion has been pledged to help Indonesia tackle deforestation from rich nations, including from the United States, Norway, Japan and now Finland.

However, the Indonesian government still faces numerous difficulties, such as lobbying by firms profiting from deforestation, competing vested interests within the forestry industry, weak governance and top-heavy bureaucracy, that is slowing the pace of action.

Norway's scheme, which proposes a two-year moratorium on new permits to clear natural forest, is meant to start in January but details of how it will work have still not been finalized.

"No projects have been finalized yet because we are still in the process of making a bilateral contract between Finland and Indonesia," said Finland's Alatalo. "But we are hoping that we will get this agreement finalized soon."

(Editing by Neil Chatterjee and Miral Fahmy)

RI, Japan Sign 8.3 Bln Yen Loan Agreement

Antara News, Friday, December 10, 2010

Nusa Dua, Bali (ANTARA News) - Japan has agreed to provide 8.3 billion yen in loans to Indonesia to improve investment climate, eradicate poverty and support national budget.

Indonesian Foreign Minister Marty Natalegawa and his Japanese counterpart Seiji Maehara signed exchange of notes on the development policy loan VII on the sidelines of the third Bali Democracy Forum (BDF) here on Friday.

On the occasion, Marty on behalf of the Indonesian government expressed gratitude to Maehara for his presence at the forum as well as to the Japanese government for its contribution to a number of BDF activities since the forum was for the first time held in 2008.

Marty said the presence of the Japanese foreign minister at the third BDF and that of former Japanese prime minister Yukio Hatoyama at the second BDF reflected Japan`s strong commitment to promote democratic values as the basis for social and political interaction with countries in the region.

Maehara meanwhile said both Japan and Indonesia shared views in various fields including economy, investment, infrastructure, financial cooperation and climate change mitigation program.

Both Marty and Maehara underscored the need for the two nations to strengthen economic cooperation based on strategic partnership for the benefit of prosperous future.

Touching on regional issues, the two foreign ministers said they had been paying great attention to the escalation of tension in the Korean Peninsula and were concerned about North Korea`s shelling of South Korea`s Yeonpyeong Island last month.

They condemned any form of military attacks which blatantly violate the principles and spirit of the UN Charter and disrupt regional stability and peace.

They expressed hope that conflicting countries could take peace steps to settle the conflict and refrain from taking military actions that may deteriorate regional security.

Tension in the Korean peninsula rose again on Nov 22 when North Korea fired dozens of artillery shells onto a South Korean island, killing two people, setting homes ablaze and triggering an exchange of fire with its southern neighbor.

In what appeared to be one of the most serious border incidents since the 1950-53 war, South Korean troops fired back with cannon.

Xanana wants RI-Timor Leste brotherly relations preserved

Antara News, Friday, December 10, 2010

RI-Timor Leste: Timor Leste Prime Minister Kay Rala Xanana Gusmao accompanied by East Java Vice Governor Saifullah Yusuf (right) visit Sekar Sari Cow Farm at Wonosari village, Pasuruan, East Java, on Friday. The Timor Leste Government will send their youth to study in Indonesia, especially in the agriculture and dairy cow farming sectors as it begins its first step toward long-term development next year. (JP/Wahyoe Boediwardhana)

Gianyar, Bali (ANTARA News) - Timor Leste President Xanana Gusmao has called for the preservation of the fraternal relations between his country and Indonesia so that their bilateral cooperation would always run well.

"The brotherhood between Indonesia and Timor Leste must be maintained," he said when receiving a Developing Relationship With Peace award from the Blahbatuh Grand Temple in the district of Gianyar, Bali, on Thursday evening.

Xanana said the brotherly relationship between the two countries must be preserved forever so that no conflict would happen between them.

Blahbatuh Grand Temple chief Anak Agung Ngurah Alit Kakarsana meanwhile said Xanana Gusmao had been invited specially to receive the peace award from the temple.

Besides Xanana, two Balinese artists also received the award, namely Ida Bagus Blansinga and Ida Bagus Oka. "On Friday, the award will also be presented to the wife of Tourism and Culture Minister Jero Wacik and the wife of Bali Governor I Made Mangku Pastika," he said.

The two women had contributed to the development of peace through their passion for batik art.

Related Article:

Timor Leste, E. Java mull cooperation in dairy farms

ADB $3 Million Grant to Help Victims of Indonesia's Volcano Eruption

Asian Development Bank (ADB) , 10 December 2010

MANILA, PHILIPPINES - The Asian Development Bank (ADB) is extending $3 million to assist in aid efforts in the wake of the Mount Merapi volcano eruptions, which destroyed homes and displaced hundreds of thousands of people in Central Java province and Yogyakarta Special region in October and November 2010.

ADB's assistance will be used to build temporary shelter, normalization of public facilities (i.e. schools, health care, water and sanitation) and setting up a cash for work scheme for the refugees to clear debris.

More than 300 people were killed and over 400,000 people were forced to flee their homes because of the eruption, according to the Indonesian Agency for Disaster Management. Many evacuees have left the evacuation points to return home after the government downgraded the alert level of the volcano in early December, more than five weeks since it began erupting. The government warned, however, that there was still a danger of volcanic mud flooding homes and properties.

"There are still thousands of families who cannot return to their villages because they were destroyed by the volcanic eruption," said ADB President Haruhiko Kuroda. "ADB will do whatever it can to support the government's efforts to provide them with temporary shelters and other essentials they need."

The $3 million grant is being provided under ADB's emergency facility, the Asia Pacific Disaster Response Fund, which provides quick-disbursing grants to help restore essential life-saving services following disasters.

ADB is coordinating its aid efforts with the Government of Indonesia, the United Nations and other development partners.

About ADB

Nestle Indonesia to Invest $100 Million to Make Milo

Bloomberg/Businessweek, By Claire Leow, December 09, 2010

Dec. 9 (Bloomberg) -- Nestle SA, the world’s largest food company, will invest $100 million in Indonesia to make Milo chocolate-flavored products and Cerelac weaning formula as purchasing power grows in Southeast Asia’s biggest economy.

The company’s factory in West Java will be ready by the end of 2012 and initially employ about 300 people, PT Nestle Indonesia President Director Arshad Chaudhry said in an interview in Jakarta on Dec. 6. Nestle will buy about 10,000 tons of cocoa powder annually from local farmers to make Milo, he said. Indonesia is the world’s third largest cocoa producer.

Nestle, which in August raised its full-year forecast as demand in emerging markets boosted first-half sales faster than analysts estimated, will focus on nutrition and wellness products, Chief Financial Officer Jim Singh said then. The maker of KitKat and Nescafe is targeting Indonesian households with a monthly income of between 800,000 rupiah ($89) and 1.45 million rupiah, whose purchasing power is rising, Chaudhry said.

These markets represent “people who are continuously seeking good solutions for providing them nutritious food with the limited money that they would have,” he said. “Products like Milo fit into this well.”

Nestle aims to replicate the success it has had with milk formulas such as its Ideal milk powder, which can be sold in packets for 1,000 rupiah, Chaudhry said. Milk powder and products such as Dancow, Bear Brand sterilized milk and Ideal contribute about half of Nestle Indonesia’s annual sales of about $1 billion, he said.

Dairy Products

After the new factory is operational there are plans to add capacity between 2013 and 2015 to provide for domestic needs, Chaudhry said at a press conference today.

Nestle Indonesia’s largest investment is in Kejayan, East Java, where it expanded milk production with a $100 million investment last year. The factory processes about 700,000 liters of milk bought from 33,000 dairy farms in East Java daily.

This factory, “one of the top 10 factories for Nestle” by volume, will also supply some of the milk needed to make Milo products at the new plant, the executive said.

Nestle has gained 10 percent this year while the Swiss Market Index has lost 0.6 percent. Still, the Vevey, Switzerland-based company’s stock trails the 14 percent climb by Northfield, Illinois-based Kraft Foods Inc., its closest rival.

Fox’s Candy

Nestle Indonesia was established in 1971 and employs about 2,600 people. It has another factory in Lampung, South Sumatra province, producing Nescafe soluble coffee and coffee mixes, and buys about 10,000 tons of green coffee a year from about 10,000 local coffee farmers, he added. Nestle has a plant in Cikupa, Tangerang making confectionery such as Fox’s candy.

Milo is a chocolate-flavored beverage marketed in Southeast Asia as an energy drink, and Nestle Indonesia sells about 15,000 to 20,000 tons of the product a year, a business that is growing 20 percent annually, Chaudhry said.

“We expect similar type of growth in the coming years,” he said. Besides the beverage, other Milo products include Choco Blazz, introduced this year as a snack bar, he said.

Nestle currently ships Milo to Indonesia from factories in Malaysia and Singapore.

Cerelac Formula

With the new factory, Nestle Indonesia will also seek local suppliers for red rice and mung beans for its Cerelac formula, Chaudhry said. Mung beans are an important source of vegetable protein for developing countries.

Other Nestle products contributing to the $1 billion annual sales in Indonesia include Nestea packets selling for 500 rupiah each, said Chaudhry, who worked in Pakistan, Switzerland and China before moving to Indonesia in September 2009.

“When you have limited money, you are very interested to spend that money wisely especially because getting sick is not an option,” he said. “When you get sick, you have to spend more money. To avoid that, there is a great deal of focus in purchasing products which show them good quality and good nutrition.”

--With assistance from Eko Listiyorini in Jakarta. Editors: Suresh Seshadri, Frank Longid.

To contact the reporter on this story: Claire Leow in Singapore at cleow@bloomberg.net; Eko Listiyorini at elistiyorini@bloomberg.net.

To contact the editor responsible for this story: Frank Longid at flongid@bloomberg.net

Nestle Indonesia president director Arshad Chaudry, right, says the world’s largest food company will invest $100 million in Indonesia to make Milo chocolate-flavored products and Cerelac weaning formula as purchasing power grows in Southeast Asia’s biggest economy. (Antara Photo)

Related Article:

Nestle Indonesia to Invest $100 Million to Make Milo, Cerelac

Indonesia Gets $45 Million From Australia to Address Climate Change

Antara News, Thursday, December 9, 2010

Jakarta (ANTARA News) - Australia Thursday announced an allocation of $45 million to Indonesia as part of Australia`s $599 million fast start climate change financing.

Foreign Minister Kevin Rudd said that Australia welcomed Indonesia`s strong leadership on climate change and the opportunity to build on Australia`s long-standing cooperation with Indonesia on reducing emissions from deforestation and forest degradation (REDD+) and climate change adaptation.

"Reducing emissions from deforestation and forest degradation - which accounts for 18 per cent of global emissions and more than 60% of Indonesia`s total emissions in 2005 - is critical to achieving a global outcome on climate change," Rudd said as quoted on the official website of the Australian embassy in Jakarta, Thursday.

New funding of $30 million will extend support for our demonstration work in Kalimantan and accelerate joint work on Indonesia`s National Carbon Accounting System, taking Australia`s total support for Indonesia`s REDD+ efforts to $100 million.

Speaking at the United Nations Climate Change negotiations in Cancun, the Climate Change and Energy Efficiency Minister, Greg Combet, said that developing a national carbon accounting system is critical to providing credible evidence of emissions reductions.

"This will be a crucial part of our cooperation as it will enable Indonesia to monitor and measure the success of its efforts. Our existing support for Indonesia`s efforts positions Australia well to be a lead partner in the establishment of a new independent institution for forest measurement, reporting and verification in Indonesia," Minister Combet said.

Building on this strong cooperation on REDD+, Australia today also accepted an invitation from Indonesia to join the Indonesia REDD+ Partnership. This is an important opportunity for Australia to further support practical activities and work closely with other countries and multilateral organisations to coordinate support for Indonesia`s REDD+ efforts.

"We are pleased to accept the invitation to join the Indonesia REDD+ Partnership and this builds on the strong bilateral cooperation we launched together in 2008," Minister Rudd said.

New funding of $15 million will support Indonesia`s efforts to adapt to climate change, including to increase understanding of likely climate change impacts, and support the development and implementation of local adaptation responses.

"Indonesia`s many islands are highly vulnerable to the impacts of climate change, and this funding recognizes how critical the issue is," said Minister Combet.

This additional support for Indonesia is part of Australia`s $599 million climate change fast-start funding which was announced in June 2010.

China lauds RI`s role in preserving regional stability

Antara News, Thursday, December 9, 2010

Jakarta (ANTARA News) - A Chinese Army officer has lauded Indonesia for its role in preserving regional stability particularly in the Malacca Strait and the South China Sea.

Chief of the General Staff of the People`s Liberation Army Lt. Gen. Qi Jianguo made the remarks at a meeting with his Indonesian counterpart, Vice Admiral Edy Harjoko, at the National Defense Forces Headquarters here on Wednesday.

Jianguo said Indonesia`s great role in the region was inseparable from its close cooperation particularly with other ASEAN member states.

On the occasion, he also expressed China`s keen interests in enhancing cooperation with Indonesia particularly in the defense and military fields.

He underscored the need for the two countries to enhance cooperation through more concrete programs in the areas of education, training, information exchange and technological transfer.

He further expressed hope that China, along with ASEAN member states could always work closely in preserving regional stability particularly in the South China Sea.

Meanwhile, Vice Admiral Edy Harjoko said military cooperation between the two countries had so far run well. The cooperation covers human resources development through exchange of visits by officers, education and training for both officers and non-commissioned officers.

Government to Fund Poor Students

Tempo Interactive, Wednesday, 08 December, 2010

TEMPO Interactive, Jakarta:Djoko Santoso, director of Higher Education said the National Education Ministry will grant scholarships to students from low-income families. The Ministry has issued Government Regulation no. 66/2010 on Education Management and Organization, requiring state universities to allocate 20 percent of seats for students from the low-income group. The government, he said, will also fund their living costs and the tuition, Djoko said yesterday.

One of the universities already applying for this policy is the Tenth November Institute of Technology (ITS) Surabaya.

ITS Rector Priyo Suprobo said the cost of living will be borne by the campus, the foster parents, or sponsorship from various companies.

Meanwhile, the entire tuition will be borne by ITS.

Every month, ITS will disburse Rp500.000 per student. Meanwhile, the student will get at least Rp500.000 from the foster parent or a minimum of Rp750.000 from a sponsoring company. “Each student will get a cost of living assistance from a grantor,” Priyo said.

The cost of living, he said, varies from Rp150.000 to Rp2 million per month. The smallest amount is the Supersemar scholarship totaling Rp150.000 per month. ITS allows the grantee to receive other scholarships because Rp150.000 is not enough to cover their cost of living.

However, he said students who get a living cost from ITS, foster parent, or other scholarship whose amount is bigger than the Supersemar, will not be allowed to seek other forms of assistance.

According to Priyo, the scholarship will be annulled if the student’s score declines for two consecutive semesters. “Their score cannot be below 2,75,” he said.

Priyo did not mind the government’s policy requiring universities to allocate 20 percent of the seats for students from the low-income group.

CORNILA DESYANA

Related Article:

Additional Rice Budget for the Poor

Malaysia offers 131 projects to Indonesian investors

English.news.cn   2010-12-04

JAKARTA, Dec. 4 (Xinhua) -- Malaysia has offered 131 projects to foreign investors in a meeting with Indonesian businessmen in the capital city of Jakarta, Kompas daily reported on Saturday.

"We offer 131 projects to investors, including businessmen from Indonesia. Now, we are more opened to investors to make Malaysia a developed country by 2020 with income per capita of 15,000 U.S. dollars," Deputy Prime Minister of Malaysia Tan Sri Dato Muhyiddin Yassin said Friday.

The meeting was attended by prominent Indonesian businessmen and officials from the country's Chamber of Commerce and Industry.

The projects offered consist of plantation, hospital, infrastructure and retail among others.

According to Chairul Tanjung, chairman of Para Group, a leading business group in Indonesia, investing in Malaysia was difficult in the past.

Editor: Mo Hong'e

Indonesia to make small aircraft to connect regions

Antara News, Saturday, December 4, 2010

Jakarta (ANTARA News) - Indonesia plans to produce the prototype of a small capacity aircraft for air travel to and from regions inaccessible by land in 2013.

"I have coordinated with the National Development Planning Agency (Bappenas), the transportation ministry and the Technology Assessment and Application Agency (BPPT) to produce an N219 type aircraft with a capacity of 19 passengers that could land on a simple airstrip as early as 2013," the director of maritime, aviation and defense equipment of the ministry of industries, Soerjono, said here on Saturday.

He said in this case PT Dirgantara would likely be assigned to build two units of aircraft with a price tag of around US$3.8 million over the next three years.

"According to PT Dirgantara Indonesia (DI) in order to break even sales should reach 27 aircraft. The capital is around US$250 million but for the basic capital for the development a total of US$40 million would be needed," he said.

He said the government would prepare a subsidy scheme for the operating of the aircraft.

"The aircraft is badly needed for the new regions and therefore there will be subsidy in the tickets or fuel," he said.

He said he hoped regional governments and airline companies would buy the planes to operate in regions that need them.

He said the idea was to improve connectivity among regions and spur growth in regions which used to be isolated due to a limited access.

"The government is pushing this program because the number of aircraft operating in regions in Papua, Sulawesi and Sumatra tend to decline while people in the regions need them very much," he said.

Chevron Sells Interest in Indonesia Gas Project to Sinopec

Bloomberg, By Brian Swint - Dec 2, 2010

Chevron Corp. agreed to sell a stake in the Gendalo-Gehem natural gas development in Indonesia to China Petroleum & Chemical Corp.

The 18 percent farm-down is subject to regulatory approval in Indonesia and China, Singapore-based Chevron spokesman Gareth Johnstone said in an e-mail today. Chevron currently has an 80 percent interest in the project, which is located in the deep- water Makassar Strait and may eventually produce 1.1 billion cubic feet of gas and 31,000 barrels of condensate a day. Financial details weren’t disclosed.

San Ramon, California-based Chevron said that it awarded front-end engineering and design contracts for the development to Technip Indonesia, PT Worley Parsons Indonesia, and PT Singgar Mulia, according to a statement.

“The completion of this project will strengthen our regional portfolio of major gas projects and enhance our position as a leading supplier of natural gas and liquefied natural gas in the Asia-Pacific region,” said George Kirkland, Chevron vice-chairman.

To contact the reporter on this story: Brian Swint in London at bswint@bloomberg.net.

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net