House to open bid for new office building next week

The Jakarta Post, Jakarta | Mon, 03/07/2011

The House of Representatives will start next week the bidding process for the construction project of its new office building in Senayan, Central Jakarta.

A technical team comprising management and building-planning consultants are currently completing requirements for the bidding process to be submitted to the House secretariat general, House home affairs bureau deputy head Refrizal said Monday.

“As soon as the secretary-general receives [the required documents], the team will be instructed to open the bid,” he added as quoted by tempointeraktif.com.

Refrizal said among the requirements was a proposal for the standard minimum price, although he refused to disclose the amount.

He added the bid result would be announced mid May.

“Then in late May or early June we will hold the opening ceremony.”

USAID helping Borobudur`s rehabilitation with $100,000

Antara News, Mon, March 7 2011

Jakarta (ANTARA News) - US international aid agency USAID is providing 100,000 US dollars to UNESCO (United Nations Educational, Scientific and Cultural Organization) to rehabilitate the Borobudur temple compound in the aftermath of the recent Mount Merapi eruptions.

According to a US embassy`s press release received here Monday, the aid was given under the US-Indonesia Comprehensive Partnership.

USAID would provide support for the emergency cleanup, including retention of a large local workforce and purchase of equipment for the cleaning operation.

The Comprehensive Partnership is critical to the bilateral relationship and is founded on the shared values of freedom, pluralism, tolerance, democracy and respect for human rights.

Borobudur temple was temporarily closed to visitors late last year when concern about the longer-term effects of ash on the monument emerged.

Indonesia`s Ministry of Culture and Tourism along with the compound`s Site Authority had initiated emergency cleanup measures. Significant work needs to be done in order to reinvigorate tourism - a critical economic resource for the region.

"The support we are providing will help build the livelihoods of affected local communities through their involvement in the rehabilitation of the cultural tourism sector, which is critical to the area?s economy," said USAID Mission Director Walter North.

One of the most active volcanoes in the world, Mount Merapi is located less than 35 kilometers from Borobudur. A series of eruptions in October and November 2010 resulted in the deaths of 322 people and the displacement of more than 135,000 people. The Mount Merapi eruptions covered the Borobudur compound in 4.5 centimeters of volcanic ash.

The Borobudur compound was built between the eighth and ninth centuries using 57,000 cubic meters of volcanic stone. The monument is decorated with 2,672 relief panels and 504 statues. In 1991 it was declared a UNESCO World Heritage Site. It is one of the most popular tourist destinations in Indonesia and a critical economic resource for the local government.

Editor: Jafar M Sidik

@america: Cultural outreach to young foreigners

San Francisco Chronicle, Norimitsu Onishi, New York Times, Sunday, March 6, 2011

Go US: A visitor registers at @america , a hi-tech cultural center|
intended to enable Indonesians to interact with that country on their
own terms. JP/Ricky Yudhistira

PST Jakarta, Indonesia -- On the third floor of a shopping mall, around the corner from a Gap Kids and a Wedgwood china outlet, a new tenant is busily promoting what is perhaps the world's biggest brand: America.

The tenant, called @america, represents the U.S. government's first attempt at creating a full-fledged cultural center since the Sept. 11, 2001, attacks. A high-tech, interactive operation heralded as the digital-age successor to the venerable American Cultural Center, it is also U.S. public diplomacy's latest effort to win over young foreigners, especially in Muslim countries.

Thousands of high school and college students have been bused in from schools in Jakarta, the capital, and its outskirts since @america's opening in December. The technology on display - a giant, supercharged version of Google Earth called Liquid Galaxy, scores of iPads that are available to test, interactive monitors explaining Black History Month - thrilled the teenagers.

It was unclear whether the center had changed their perceptions of the United States, though.

Tech savvy: Young visitors browse
through their e-guides at the @america
center. JP/Ricky Yudhistira

"It doesn't matter what they think of the United States - 'Do you hate us? Do you love us? Are you somewhere in between?' " said Matt McGowan, 36, an American whose company, PT Ganesha Aggies Jaya, has been contracted to run the center.

The State Department's undersecretary for public diplomacy, Judith McHale, described @america as the "first of a new generation of American cultural centers."

Eva Zahrowati, 34, an English teacher at Islamic Senior High School No. 4, said her students had picked up bits of U.S. history during their visit.

She added, however, that the center's location - in one of Jakarta's most tightly guarded malls - created "obstacles" for Indonesians like her students. Visitors must undergo body scans and deposit their bags between two doors to enter @america, and the heavy security had left a bad taste.

"Is America afraid of us?" Zahrowati said.

The technology used by @america impressed Annisa Mutiara, 16, who said her dream was to go to a U.S. university. But Annisa was not swayed by what she assumed was the motivation behind the invitation to her school.

"I believe that America hates Muslims, and I'm a Muslim," she said. "I still believe that after coming here."

@america

Pacific Place Mall 3rd floor #325

Jl. Jendral Sudirman Kav.52-53

Kebayoran Baru, Central Jakarta, 12190

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Twenty Spanish companies to invest in RI

Antara News, Thu, March 3 2011

Jakarta (ANTARA News) - Twenty Spanish companies are ready to invest in Indonesia`s energy, electricity, transportation, telecommunications, infrastructure and manufacturing sectors, a minister said.

"They seriously intend to invest in Indonesia after they had studied the good investment prospects in the country as reflected by consistent economic growth," Coordinating Minister for Economic Affairs Hatta Rajasa said after chairing a coordination meeting on a state enterprise rightsizing program here on Thursday.

The plan to invest in Indonesia surfaced when Spanish State Secretary of Foreign Trade Alfredo Bonet, along with a Spanish business delegation, held bilateral talks with officials of the Indonesian Trade Ministry a few days ago, he said.

To enhance bilateral cooperation, the Spanish government and businessmen wanted the two countries to revise a number of agreements in the investment sector to ensure that the strategic partnership could be implemented well, he said.

Data from the Trade Ministry show two-way trade between Indonesia and Spain reached US$2.18 billion in the January-November 2010 period, a 12.6 percent increase compared to US$1.94 billion in the same period the year before.

Indonesia recorded a surplus of US$1.62 billion in its trade with Spain in the January-November 2010 period, up 9.60 percent from the same period in the previous year when the figure was US$1.48 billion.

Last year Spain ranked 14th as the destination of Indonesia`s exports. Indonesia`s exports to Spain included copper ores and concentrates, coal, briquettes, palm oil, natural rubber, industrial monocarboxylic fatty acids, video recording or reproducing apparatus.

Meanwhile, Indonesia imported aircraft (helicopters, aeroplanes), unwrought aluminium, new pneumatic tyres, transmission apparatus for radiotelephony, acyclis hydrocarbons, medicaments, and cigarette paper from Spain.

Editor: Heru

Two RI vehicles to participate in Shell Eco Marathon 2011

Antara News, Thu, March 3 2011

Yogyakarta (ANTARA News) - Gadjah Mada University (UGM)`s Semar Team is to enter two energy-efficient vehicles in the Shell Eco Marathon 2011 to be held at Malaysia`s Sepang Circuit on July 6-9 2011.

"The two energy efficient vehicles are the Semar Prototype and the Semar Urban," said Jayan Sentanuhady, adviser of Gadjah Mada University`s Semar Team, here Thursday.

The Semar Team was aiming to achieve maximum fuel efficiency and riding distance, Jayan said.

The engines of the energy efficient vehicles were designed for heat efficiency and maximal volume under certain balanced conditions, Jayan said.

"They are long stroke engines with high torque characteristics on the low rev to lower fuel consumption," Jayan, who is also a lecturer of Machine and Industry Engineering of Engineering Faculty of UGM, said.

According to Jayan, the Semar Prototype could cover 280 kilometers on one liter of gasoline.

The Semar Prototype was 2.8 meters long, 0.65 meters high, one meter wide and had a 1.6-meter long wheel base.

The chassis wa made of fiberglass with 2 millimeter thickness, while the engine was a 25 cc four-stroke single cylinder able to take the vehicle to its maximum velocity of 45 km per hour.

Meanwhile, the Semar Urban, which was designed as an energy efficient city car , was now still in a finishing process.

The Semar Urban used a 125 cc four-stroke engine, had double spark plugs which were ignited sequentially using an Electronic Control Unit, and consumed number 95 octane gasoline, Jayan said.

The Semar Urban`s dimensions were 2.3 meter long, 1.3 meter high, and 1.3 meter wide.

To compete in the upcoming competition, the Semar Prototype`s engine, which was 25 cc, would be replaced with a 115 cc engine to gain more power on an uphill road, Jayan said.

The rear swing arm, rear seats and steering paddock would be made separately, Jayan said, adding that the wheel house would be made outside the chassis to maximize its steering wheel turning angle until 45 degree.

With such transformation, Jayan hoped Semar Team could compete and perform well and win the competition.

Editor: Priyambodo RH

Mitsubishi to Invest Up to $20bn in Indonesia

Jakarta Globe, March 02, 2011

President Susilo Bambang Yudhoyono, right, welcoming the arrival of Mitsubishi
 Corp. CEO Ken Kobayashi and a delegation from the company at the presidential
 palace on Wednesday. The automobile company plans to invest up to $20 billion in
Indonesia. (AFP PHOTO)  

     

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Indonesia said on Wednesday that Japan's Mitsubishi Corp. planned to invest up to $20 billion in the Southeast Asian nation over 10 years in projects ranging from car making to infrastructure.

The Japanese conglomerate "will invest in several projects in Indonesia," said the head of Indonesia's Investment Coordinating Board, Gita Wirjawan, after meeting Mitsubishi president and chief executive Ken Kobayashi and President Susilo Bambang Yudhoyono.

Other projects Mitsubishi is interested in are the Jakarta area's airport railway project, construction of a sport utility vehicle (SUV) plant and construction of a power plant, officials said. Mitsubishi is already involved in Indonesia's petroleum, shipping, fertilizer and industrial machinery sectors.

Agence France Presse

ADB to funnel $500 m for RI geothermal power plants

Rangga D. Fadillah, The Jakarta Post, Jakarta | Wed, 03/02/2011

Indonesia will receive a US$500 million (Rp 4.4 trillion) loan from the Asian Development Bank (ADB) to build three geothermal-fired power plants with a total capacity of 165 megawatts, a senior official says. 

The secretary to the alternative and renewable energy and energy conservation director general at the Energy and Mineral Resources Ministry, Djajang Sukarna, said Wednesday that the power plants would be constructed in Sungaipenuh in Jambi, Karaha in West Java and Mataloko in East Nusa Tenggara.

“We’ll sign the deal in late 2011 and start construction of the power plants next year,” he said on the sidelines of a meeting with ADB and the National Development Planning Board (Bappenas) in Jakarta.

He said Pertamina Geothermal Energy (PGE), a subsidiary of state oil and gas firm Pertamina, would handle the upstream operation at the Sungaipenuh power plant, while state electricity company PT PLN would handle the downstream operation.

 “At the Karaha power plant, all businesses will be operated by PGE. For the Mataloko plant, PLN will take full control,” said Djajang.

Indonesia to build first wind farm in W Java

Bernama, 02-MAR-2011, 2 Mar, 2011

A local energy firm, Viron Energy, plans to build the country's first large-scale wind power plant in Sukabumi, West Java, this year, with a total capacity of 30 megawatts, Xinhua news agency reported, citing local media report Tuesday.

State-run power firm PLN renewable energy division head Muhammad Sofyan said last week that the Energy and Mineral Resources Ministry had approved the project and the company was waiting for the ministry to issue an official permit to begin construction.

"Next month we'll sign the contract with the developer. The construction will take at least a year," he said after a discussion on alternative energy for industries here Monday.

He said PLN would buy the electricity produced by the firm at 820 rupiah (about 9.2 US cents) per kilowatt-hour.

The price is very good. The cost of producing electricity from oil-based fuels can reach 2,400 rupiah per kilowatt-hour (about 27 cents)," Sofyan was quoted as saying by the Jakarta Post.

The location of the site is suitable for wind power generation as wind speed in the area is more than 6 meters per second, he said.

"The Sukabumi wind power plant will have a total generation capacity of 30 megawatts. But the first stage of the plant to be built will generate 10 megawatts," Sofyan said.

The director general for new and renewable energy and energy conservation at the ministry, Luluk Sumiarso, who also attended the discussion, said that this year would herald rapid development of Indonesia's renewable energy resources.

"Next month, in addition to the wind farm project, the government will also issue three letters ordering PLN to buy power from geothermal producers," he said, adding that he was happy with PLN's commitment to boost the use of alternative and renewable energy.

Many foreign and local investors expressed their interest in developing renewable energy in Indonesia, but the government would begin investing in projects in rural areas to lure private investors, Luluk said.

"We plan to build several solar power plants in rural areas, not only at the household scale, but also at the community scale. We hope the construction of the wind farm can stimulate further investment," he said.

Luluk said the Sukabumi project would be Indonesia's first large-scale wind-generated power plant.

PLN has expressed its commitment to developing renewable energy for electricity, particularly in the eastern part of the country where generating power from oil-based fuels cost Rp 3,000 per kilowatt-hour, Sofyan said.

In that part of the country, the prices of renewable energy are much more competitive, he emphasized.

PLN to build six power plants with foreign capital

Antara News, Tue, March 1 2011

Jakarta (ANTARA News) - State electricity company PLN is to build six power plants in 2011 with overseas investment totaling 3.006 billion US dollars, according to the company in a document prepared for a meeting with the parliament on Tuesday.

The investments are meant for the construction of the 2,000MW Indramayu thermal power plant (West Java), Hulu Lais thermal power plant (110MW) at Bengkalis, Riau province, Tulehu thermal power plant (20MW) in Ambon, Maluku province, Kotamobagu thermal power plant (three units, 80MW) in North Sulawesi, Sungai Penuh thermal power plant (110MW) in Jambi province and Mataloko thermal power plant (5MW) East Nusa Tenggara province.

PLN had proposed the construction of those power plants in its medium term overseas grant credit plan (DRPHLN-JM) for 2010-2014.

The Indramayu power plant will need the lion`s share of the investment of 2.971 billion US dollars, 2.525 billion US dollars is expected from overseas credit and the rest 446 million US dollars will be the counterpart funding.

Hululais will need a credit of 147 million US dollars, Tulehu needs 65 million US dollars, Kotamubago needs 110 million US dollars, Sungai Penuh requires 140 million US dollars and Mataloko needs 19 million US dollars.

PLN Finance Director Setio Anggoro Dewo said in the hearing with the House of Representatives` Commission VI that some of the projects are already in the stages of engineering study while some others in feasibility study.

He said Japan International Cooperation Agency (JICA) is to fund the Indramayu, Hulu Lais and Tulehu projects.

Kotamobagu will be funded by Kreditanstalt fur Wiederaufbau (KfW), a German government-owned development bank, based in Frankfurt, whereas Sungai Penuh and Mataloko will be financed by the Manila-based Asian Development Bank (ADB).

PLN for 2011 has allocated a capital expenditure of 77.398 trillion rupiahs and 62.13 trillion rupiahs for 2012.

For 2011 PLN breakdowns the capital expenditure of 35.87 trillion rupiahs for electricity generation, transmission 29.34 trillion rupiahs and distribution 12.186 trillion rupiahs.

On operational expenditure, PLN will spend 175.19 trillion rupiahs for fuels and lubricant and purchase of electricity from private companies.

Editor: Heru

French Firms Eye $10b of Investment in Indonesia

Jakarta Globe, Dion Bisara & Shirley Christie | February 25, 2011

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Indonesia could see upwards of $10 billion in investment from an unexpected source, ministers said, as French companies expressed interest in participating in infrastructure and energy projects.

Finance Minister Agus Martowardojo walks together with
French Economy, Finance and Industry Minister Christine
Lagarde before their meeting in Jakarta on Friday.
(AFP Photo/Bay Ismoyo)

French investment only played a minor role in the country in recent years. According to data from the Investment Coordinating Board (BKPM), its investment in Indonesia only amounted to about $307 million from 2006 to 2009.

Hatta Rajasa, the coordinating minister for the economy, met with French Minister for Economic Affairs, Finance and Industry Christine Lagarde and a delegation of 40 French business leaders on Friday. It is the first visit made by France at a ministerial level in 14 years.

He said French businessmen planned to invest $175 million in a project called the Bandung Metropolitan Railway, a network of railways connecting Cicalengka and Padalarang in the West Java city.

Hatta also said that French companies would participate in a $5 billion nickel smelter project in Halmahera, North Maluku. “They are also interested in geothermal and environmentally friendly industries,” he added.

In a separate announcement, Finance Minister Agus Martowardojo said Eramet, a French firm, would work with Japanese firm Mitsubishi and state-owned miner Aneka Tambang on the Halmahera project.

“There are two investment agreements that have materialized with the French in a short amount of time,” he said.

Lagarde confirmed the intention of French companies to boost their investment in Indonesia, although she declined to provide details.

The French chief executives and chairmen who met with Hatta came from sectors such as energy, transportation, water treatment, weather forecasting, railroad development, construction and retail, she said.

“Those companies are determined to improve investment,” she said, adding that the deals ranged in the billions of euros.

Last week, L’Oreal Group, a Paris-based cosmetics and beauty company, declared its plan to construct its largest factory in Indonesia. The new factory will be built at the Jababeka industrial estate in West Java and is expected to be operational by the end of this year.

The 200,000 square meter plant will be able to produce 300 million units annually by next year, with maximum production forecast at 500 million units.

Apart from boosting investment, Lagarde said, the French want to double the growth rate of trade between the two countries. She said the growth rate of trading, which is currently at 5 percent, is too small.

Last year the total value of two-way trade between the two countries stood at $2.5 billion.

France is the 23rd-largest importer of Indonesian commodities. The main exports to France include electrical transformers, static converters, furniture, cocoa butter, fat and oil.

Indonesia is the 13th-largest importer of French commodities, mainly bulldozers, excavators and other heavy machinery.

Indonesia registered a deficit of $762.9 million in trade with France in 2010. The deficit was spurred by declining exports of commodities and items such as natural rubber, paper pulp, footwear and radio and telephone parts.

France confirms plan to invest in Bandung railway project

Antara News, Fri, February 25 2011

Jakarta (ANTARA News) - France has confirmed its intention to invest 175 million US dollars in Bandung`s Metropolitan Railway project that will connect Padalarang and Cicalengka districts, West Java, a minister said.

"France has confirmed its intention to invest 175 million US dollars in the Padalarang-Cicalengka railway project that is designed to overcome the region`s chaotic traffic congestion problem," Coordinating Minister for Economic Affairs Hatta Rajasa said here Friday after a meeting with French Economic, Finance and Industry Minister Christine Lagarde.

Hatta Rajasa said France was also interested in urban development in Surabaya city, East Java.

On a national scale, France would like to cooperate with Indonesia in developing geothermal energy sources and in extreme climate monitoring efforts being managed by Indonesia`s Meteorology Climatology and Geophysics Agency (BMKG).

"Besides, they are also interested in geothermal energy and environment based industries which will be a government-to-government issue," he said.

France had also confirmed its plan to participate in a nickel smelter project and nickel processing industries in Halmahera, North Maluku, valued at around 5 billion US dollars, through a multinational company, Eramet.

To participate in the nickel smelter project, France was asking for an operation permit valid for up to 50 years while Indonesian government policy only allowed foreign companies to operate for 30 years only with the possibility of extending it every 10 years, Hatta said.

Hatta also hoped the French government would also contribute to the development of Indonesia`s economic regions with an investment of 10 billion US dollars.

Meanwhile, Minister Christine Lagarde said the French economic delegation she was leading was the first to come to Indonesia in the last 14 years. France wanted to step up its investment in and its economic cooperation with Indonesia through ministerial level talks.

"We have also met Vice President Boediono and discussed investment in energy, transportation, water conservation, climate monitoring, railroads, construction and retail companies such as Carrefour," she said.

The French economic delegation`s purpose was also to increase the volume of trade between the two countries which currently still stood at the relatively low figure of about 2.5 billion US dollars.

Editor: Heru

Epson opens new factory in Cikarang

The Jakarta Post, Jakarta | Fri, 02/25/2011

PT Indonesia Epson Industry, a subsidiary of Japan-based Seiko Epson Group (SEG), launched its new plant at EJIP industrial estate in Cikarang, Bekasi, West Java, on Friday.

SEG director Hagata Tadoaki said that the company wanted to boost its production capacity to more than double by 2012 by opening the new facility.

“Currently, our Indonesian plant produces 6 million printers per year. With the new plant, we expect to start producing 13 million units annually by 2012,” he said during the opening ceremony of the new plant in Cikarang.

He said that in line with the expanding production capacity, Indonesian plants would contribute more than 50 percent to Epson’s total sales.

Currently, Epson’s only Indonesian plant makes up 40 percent of Epson's global sales, which reaches 15 million units.

Hagata said the new plant would absorb 5,000 new workers, adding to around the 10,000 people already employed. (lnd)

Miniature traditional Gowa house to be built in South Africa

Antara News, Wed, February 23 2011

Gowa traditional house or Balla Lompoa. (gowata.blogspot.com)

Maskassar (ANTARA News) - A miniature traditional Gowa house from South Sulawesi, known as Balla Lompoa, will soon be built in South Africa.

South African Ambassador to Indonesia Noel N. Lehoko discussed the plan to build the Gowa traditional house at a meeting with South Sulawesi Vice Governor Agus Arifin Nu`mang here on Wednesday.

The miniature of Gowa traditional house in South Africa is expected to further strengthen cultural ties between the country and South Sulawesi.

"The purpose of my visit here is to connect the cooperation that has been done and to renew a memorandum of understanding that has expired," the South African envoy said.

Relations between South Africa and South Sulawesi have lasted for 300 years but remained strong because there used to be Syeh Yusuf tomb in South Africa but it has been removed to South Sulawesi.

Meanwhile, Agus Arifin said that in the past visit to South Africa by President Susilo Bambang Yudhoyono the plan to build a miniature of Balla Lompoa in Cape Town was discussed.

"The South African envoy mentioned the from central government and thus we will prepare the miniature of Balla Lompoa to be built in Cape Town," Agus Arifin said.

In addition, he said the cooperation with South Africa in the field of education, culture, trade, and tourism would also be developed.

Agus Arifin said that one of tourism cooperation that could be developed was a tour package to South Africa like Umrah package plus to Cairo and Palestine.

In education field, he said South Africa could also be a choice by South Sulawesi students to take their doctorate degrees in mining.

"South Africa with its surrounding countries have a high economic level and are open to South Sulawesi because of their cultural relations," Agus said.

Editor: Priyambodo

Australian government supports clean water program

Antara News, Wed, February 23 2011

"This will help improve their health, quality of life and economic potential."

Jakarta (ANTARA News) - The Australia government supported clean water access program for about 2,000 households in Serang, Banten.

(FOTO ANTARA/Sahrul Manda Tikupadang)

"More than 100,000 people in Serang now have easier and cheaper access to clean water. This will help improve their health, quality of life and economic potential," AusAID Infrastructure Counselor Ben Power said in a press release received here, Wednesday.

Serang is one of 35 Indonesian districts that have received grants to install new water connections. Australia is working closely with the Indonesian Government to administer this program.

"Australia is proud to be working with Indonesia to improve access to clean water and is committed to helping Indonesia reach its goal of halving the amount of people living without access to clean drinking water," said Power.

The grant is part of Australia`s 25 million Australian dollars commitment to Indonesia to increase piped water in poor urban communities, and to increase the number of households with sewerage connections.

This support will give about 60,000 households across Indonesia new connections to piped water and up to 10,000 household`s sewerage connections.

A further 400,000 Indonesians will have access to cleaner water and better sanitation as a result of the Grant Water program.

Furthermore several cities and districts in Sumatra, Java, Kalimantan, West Nusa Tenggara and Sulawesi will also received benefit from this new water and sanitation initiative.

As well as this grant program, Australia is helping local governments manage community water supply and sanitation utilities to ensure the sustainability of this development.

Editor: Priyambodo

Daihatsu Indonesia's unit says to invest 2.1 trln rph in new car factory

Reuters, JAKARTA | Tue Feb 22, 2011

Feb 23 (Reuters) - PT Astra Daihatsu Motor, a unit of Japan's Daihatsu , will invest 2.1 trillion rupiah to build new car factory with a capacity of 100,000 units in Indonesia, the firm said in a statement on Wednesday.

The firm expects production to start by end of 2012 and the factory will be located in East Karawang, West Java province, it said.

The statement confirmed an earlier report by Nikkei, which also said Daihatsu was considering a low-cost car in Indonesia.
(Reporting by Fathiya Dahrul)

South Korea’s Lotte to Build $5b Petrochemical Project in Banten

Jakarta Globe, Camelia Pasandaran | February 22, 2011

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South Korea’s Lotte Group is planning to invest up to $5 billion in a petrochemical project in Banten province, with construction expected to start next year.

“We will start the feasibility study to develop a petrochemical project in Merak, Banten province, this year. The investment is estimated to cost between $3 billion to $5 billion,” Lotte chairman Shin Dong-bin told reporters after meeting with President Susilo Bambang Yudhoyono.

Shin said the group was expecting to start the construction of the plant next year and finish within four to five years.

Gita Wiryawan, chairman of Indonesia Investment Coordinating Board (BKPM), praised Lotte’s plan, saying that “Lotte has been investing in Indonesia, in the retail sector, duty free. It’s great that they are expanding here.’’

Gita added that Lotte would also launch Lotteria, a fast-food chain, in Indonesia.

Lotte has also recently stated its interest in acquiring a stake in Matahari Putra Prima, Indonesia’s largest retailer by market value, through its retail subsidiary. The deal was turned down by Matahari because Lotte’s offer was too low.

Last week, Indonesian ministers flew to Seoul, meeting with President Lee Myung-bak to ask South Korean companies to invest in Indonesia. South Korean firms were said to be interested in investing as much as $20 billion in various infrastructure sectors in Indonesia.

Indonesia is trying to entice more foreign investors to help meet Yudhoyono’s target of an average annual growth rate of 6.6 percent over the remainder of his presidential second term, which will end in 2014.

The country is targeting total realized investment to rise to 230 trillion rupiah this year from 208.5 trillion rupiah last year, Gita said in January.

President suggests construction of millions cheapest houses

Antara News, Tue, February 22 2011

Bogor, W Java  (ANTARA News) - President Susilo Bambang Yudhoyono has suggested the construction of million of very cheapest houses for the poorest and poor people in the country.

"We can build several million homes with the very cheapest prices within one year and will continue to do so," the president said in his closing address of government working meeting at Bogor Palace on Tuesday.

The head of state proposed that the prices of the cheapest houses would range from Rp5 million to Rp10 million per unit, because they were classified into temporary residence before the owners moved to a more permanent home.

President Yudhoyono`s suggestion would be a guideline which is to be discussed in the cabinet meetings.

According to the president, the funds for constructing the very cheapest houses could come from related state enterprises, corporate social responsibility funds, and those allocated from the government budget.

The construction of the most inexpensive houses is one of six new programs, proposed by the president.

The five other programs are related to cheapest transportation, cheapest clean water facility, cheapest electricity program, improvement of fishermen standard of living, and program to improve the lives of suburban community.

President Yudhoyono said the six new programs were the fourth group of pro-people programs.

Editor: Aditia Maruli

Govt to develop biogas for small industry

Antara News, Tue, February 22 2011 

Jakarta (ANTARA News) - The government will develop biogas technology as an energy source for small and medium scale industries, a senior official said.

Director General for Small and Medium Industries Euis Saedah said here on Monday that biogas could serve as a solution to the use of efficient energy for small and medium industrias.

"The development of biogas has yet to be aimed at supporting the existence of 3.8 million IKMs while in fact the development of bio gas is quite suitable with IKMs` condition which are small scale and separate with each other," she said.

She said that the number of IKMs now reached 3.8 million with employed about 8.75 million workers. About 90 percent of these industries were small industries and the remaining ones were middle scale with groups of sectors such as food, chemicals, construction materials, clothing, handicraft and metal as well as electronics.

In the meantime, Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Suryo Bambang Sulisto said the government had not yet provided incentive for the development of biogas in Indonesia.

"The incentive is needed so that the people would turn to alternative energy," she said.

She said that since it was developed 20 years ago, there were now only 14,000 units of biogas development devices in Indonesia.

"Kadin has a target to install one million units in the next three years," she said.

Editor: Aditia Maruli

US universities hold US education fair in Jakarta, Medan, Semarang, Surabaya

Antara News, Tue, February 22 2011

Jakarta (ANTARA News) - U.S. Ambassador Scot Marciel, here, Sunday (Feb. 20) spoke at the Spring 2011 EducationUSA Fair, held in partnership with 38 prominent U.S. educational institutions.

U.S. Ambassador Scot Marciel (Antara)

The EducationUSA Fair, which was open to the public, included university representatives and presentations on "Study in the USA" and the student visa application process, a press statement of the US Embassy in Jakarta, said here, Tuesday.

The EducationUSA Fair started on Sunday, February 20 in Jakarta, followed by events in Medan on February 22, Semarang on February 24, and Surabaya on February 26 before concluding in Denpasar on February 28.

Attendees will be able to meet university representatives and follow activities through EducationUSA`s website and social media channels, including Facebook, Skype, and Twitter.

The EducationUSA Fair is an annual advising activity coordinated by AMINEF/EducationUSA that provides accurate and impartial information on studying in the United States by facilitating direct interaction between students and university representatives.

This Fair also enhanced students` exposure to the thousands of possibilities of majors, programs, scholarships and assistantship opportunities available at U.S. academic institutions.

The Fair is part of AMINEF`s EducationUSA initiative to contribute to the goals set forth in the Comprehensive Partnership agreement between the governments of the Republic of Indonesia and the United States of America to double the number of Indonesians studying in the U.S. in the next five years.

During the Fair, representatives of the U.S. Embassy Consular Office provided information on the visa application process.

The Consular section welcomes student visa applications and has made the application process as easy as possible. Student visa applicants are guaranteed an appointment on any Monday the Embassy is open.

The Education USA website at www.educationusa.or.id provides more details of the visit agenda along with additional information on universities, courses, and studying in the United States.

Editor: Priyambodo

Bank Mandiri allocates $12 million for IT development

The Jakarta Post, Sat, 02/19/2011

The country’s biggest lender in term of assets, state-owned Bank Mandiri, has earmarked US$12 million for IT system development.

“In 2011 we allocate US$12 million, or about Rp 1 trillion, for our IT system development, with which we hope to be able to expand our services,” Bank Mandiri corporate banking director Fransiska Nelwan Mok said Saturday while addressing a workshop on transactional banking in Kuningan, West Java.

“Indonesia, as a country with large population and income per capita of US$2,500, will demand wider financial transaction services,” she said, as quoted by Antara.

Genting Unit Discovers Gas in Indonesia

Jakarta Globe, Bambang Djanuarto | February 18, 2011

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Genting Bhd.’s exploration unit discovered natural gas in the Kasuri block in the Indonesian province of West Papua, said Elan Biantoro, a spokesman at Indonesia’s oil and gas regulator BPMigas.

Genting Oil and Gas Ltd. found the gas at the Asap-1X exploration well with a potential flow rate of 100 million cubic feet a day, Biantoro said by phone from Jakarta today. The discovery was earlier reported by Upstream publication.

“We hope the discovery will help us increase gas production to meet increasing domestic demand,” Biantoro said. The Kuala Lumpur-based company completed the drilling test at three layers of the block on Jan. 28, he said.

Genting Oil, which has four oil and gas projects in Indonesia, won rights from the Indonesian government to explore the Kasuri block in May 2008. It also operates in China and Morocco, according to information on the parent’s Web site.

Bloomberg

Govt offering investors chance to develop cotton plantations

Antara News, Thu, February 17 2011

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Jakarta (ANTARA News) - The government is offering investors a chance to develop cotton plantations to meet growing demand from the domestic textile industry, an Industry Ministry official said.

Right now the domestic yarn spinning and textile industries depended on imported cotton because of low domestic cotton output, the ministry`s director general of manufacturing industry base, Panggah Susanto, said here on Thursday.

He said domestic cotton output currently supplied 2.5 percent of the national needs.

Data from the Central Statistics Agency (BPS) show the country last year imported US$2.23 billion worth of cotton compared to US$1.48 billion a year earlier.

Indonesia, with a population of 234 million, now imports cotton from China, Australia, the United States, and South Korea.

Because of large dependence on imported cotton, the domestic textile industry is easily influenced by a change in global cotton prices.

The government said earlier it would encourage the development of cotton plantations to reduce the country`s dependence on imported cotton.

To that end, the Agriculture Ministry has decided to develop cotton as one of the strategic commodities which will receive priority in the implementation of the 2010-2014 plantation development program.

Editor: B Kunto Wibisono

Gas using industries to build LNG receiving terminal

Rangga D. Fadillah, The Jakarta Post, Jakarta | Thu, 02/17/2011

A consortium of gas using-industries on Thursday announced it would set up a US$200 million liquefied natural gas (LNG) receiving terminal in Banten province, in efforts to meet demand for the resource.

The secretary-general of the Forum for Natural Gas Using Industries (FIPGB), Achmad Widjaja, said the consortium expected the floating storage and re-gasification unit (FSRU) to start operating in April 2012.

“We hope the government will soon issue the permit to start the construction of the FSRU so that we can finish it on schedule by April next year,” Achmad said after a discussion about the plan in Jakarta.

He added that the planned FSRU would have a total capacity to store up 500 million standard cubic feet per day (mmscfd) of LNG -- equivalent to one-third of industries total needs.

“The LNG will be imported from several gas-producing countries including Russia, Qatar and Nigeria. The consortium has already spoken to suppliers on how to transport the LNG to Indonesia,” Achmad said.