Australian government helps Banjarmasin`s sanitation

Antara News, Wed, April 6 2011

Banjarmasin, S.Kalimantan (ANTARA News) - The Australian government provides a grant to the Banjarmasin city administration for its sanitation program, Banjarmasin mayor, Muhidin said here, Tuesday.

The Australian government sent a team for the initial grant, the mayor said.

After an inspection of the work of the first grant, the second phase of the funds will be provided after the sanitation program had been completed by the Banjarmasin company of Waste Water Management Area (PD PAL).

With the Australian government grant of Rp10 billion, the Banjarmasin city administration is very helpful in implementing the community sanitation program.

Therefore, it is expected that in the future Banjarmasin city will be an area with a good sanitation system and supported by the community.

In addition, the Banjarmasin city administration will also formulate laws on sanitary affairs that would require every building owner to have a standard sanitation system, Muhidin noted.

Meanwhile, the director of PD PAL Banjarmasin, Muh.Muhidin plans to call the city of thousand rivers, free from waste.

The target is expected to be realized in 2028.

Currently, waste in Banjarmasin is very alarming and it is estimated that more than 70 percent of the population do not manage their waste appropriately, Muh.Muhidin noted.

Therefore, PD PAL Banjarmasin as waste water management company intends to direct the local people to carry out a good and perfect waste management system especially in household waste.

Currently, the existing waste management system in Banjarmasin city in general is a local system consisting of family latrines or toilets with septic tanks.

As an effort to improve the environmental condition and the public`s health, the Banjarmasin city administration plans to build a centralized sanitary system, Muh.Muhidin said.

Editor: Aditia Maruli

Bank Mandiri, AXA to acquire ADB

The Jakarta Post, Jakarta | Tue, 04/05/2011

The country's largest lender by assets, Bank Mandiri, announced Tuesday its plan to acquire local insurance firm PT Asuransi Dharma Bangsa, as part of its partnership with French-based insurance company AXA S. A.

“After going through selection and negotiation processes with a number of global insurance firms, we have selected AXA S. A. as one of Bank Mandiri's strategic partners in developing our business,” the bank said in a press statement Tuesday.

“To realize [the partnership], Bank Mandiri is planning to acquire PT Asuransi Dharma Bangsa 'ADB'”,” it added as quoted by tempointeraktif.com.

The acquisition will be undertaken, the bank further explained, by purchasing 120,000 of 126,718 new shares ADB is planning to soon issue.

AXA, meanwhile, will buy the remaining 6,718 new shares, while taking over 73,292 ADB shares currently owned by Bank Mandiri Pension Foundation and PT Estika Yasakelola.

After the transaction completes, Bank Mandiri is set to own 60 percent of ADB's shares, while AXA the remaining 40 percent.

ADB's financial reports said its total assets stood at Rp 61.9 billion (approximately US$7.1 million) in 2010, a 40.5 percent increase from the year before; while its gross premium revenues reached Rp 28 billion, a 21 percent increase from 2009.

Rp 80b for expansion of Bandung’s Husein Sastranegara Airport

The Jakarta Post, Jakarta | Tue, 04/05/2011

Airport operator PT Angkasa Pura II says Rp 80 billion (US$9.2 million) has been allocated to expand the passenger terminal at Husein Sastranegara Airport in the West Java capital of Bandung.

The terminal now covers 5,051 square meters of area and can accommodate up to 350,000 passengers per year. The plan is to expand the area to eventually cover 8,650 square meters of land and boost capacity to serve up to 1 million passengers annually.

“[The expansion work] is expected to be completed by 2013,” PT Angkasa Pura II director Tri S. Sunoko said Tuesday, as quoted by tempointeraktif.com.

He said the first stage of the expansion plan comprised renovation of the existing terminal this year.

Tri added Angkasa Pura II was currently working on the 7.5-centimeter overlay of the airport’s runaway, which was scheduled for completion in mid-April.

He said the overlay work would cost about Rp 40 billion.

Husein Sastranegara serves both domestic and foreign routes, with AirAsia Indonesia contributing 79 percent of the international routes to and from Kuala Lumpur and Singapore.

United States Companies Eye Railways, Airports in Indonesia: Official

Jakarta Globe, April 04, 2011

United States firms are eying investments in Indonesian infrastructure
such as railways and airports but are concerned about graft and a lack of
protection of intellectual property rights, the US under secretary of
commerce said on Monday. (Reuters Photo)

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United States firms are eying investments in Indonesian infrastructure such as railways and airports but are concerned about graft and a lack of protection of intellectual property rights, the US under secretary of commerce said on Monday.

Under President Barack Obama, the United States is trying to improve ties with the world’s most populous Muslim country, including through investment and by boosting bilateral trade of $23 billion a year, which is two thirds of Indonesia’s trade with China.

“We have some American companies that are interested in supporting Indonesian transportation infrastructure needs, particularly in the railway system,” Francisco Sanchez said in an interview with Reuters.

He declined to identify the companies.

Indonesia’s government plans next week to offer investors $32 billion worth of infrastructure projects, including a railway, toll road and power plant, as Southeast Asia’s largest economy struggles to fund an overhaul of its transportation network.

Inadequate infrastructure is seen as both an investment opportunity and an obstacle to growth, and was cited by Fitch Ratings last month as a key risk to the chances of the country winning an investment grade rating in the next 12-18 months.

Other sectors US investors are interested in are health care, agriculture and green energy, said Sanchez, in Jakarta to explore closer commercial ties.

Indonesia opened up health care for foreign investment last year, and is looking to boost food security and expand geothermal power, where U.S. energy major Chevron is already an investor.

Foreign direct investment has picked up in Indonesia in the past year, but there has been far more investment from Asia than from US or European firms, with Japan having pledged more than $50 billion in infrastructure investment.

Indonesian President Susilo Bambang has vowed to tackle corruption, a concern for many investors, though progress appears to have stalled.

Sanchez said further reforms on transparency were needed to attract more investment.

“Corruption, protection of intellectual property rights and overall transparency, all of these will have more long-term impact and positive impact on the Indonesian economy,” he said, adding businesses also wanted an opportunity to have a say on proposed regulations and laws.

Policy flip-flops have been a major concern for investors, particularly in the resources sector with rules aimed at reducing foreign ownership or involvement.

ExxonMobil has been in protracted negotiations over gas fields, while Indonesian regional authorities are competing with the national government to grab a stake in a nickel mine operated by US miner Newmont.

Reuters

U.S. to accommodate 15,000 Indonesian students

English.news.cn   2011-04-04

JAKARTA, April 4 (Xinhua) - The government of the United States intends to accommodate 15,000 Indonesian students to study in the country through its ACCESS America Higher Education Forum held on Monday, Kompas.com online news reported Monday.

The program is a comprehensive cooperation in educational field that has been agreed by Indonesian President Susilo Bambang Yudhoyono and the U.S. President Barack Obama in Nov. 2010.

"Last year, President Obama intended to multiply Indonesian students to the U.S. and now we want to support and to organize the plan," U.S. Under Secretary of Commerce for International Trade Francisco J. Sanchez told the press.

He said that the forum themed "Advancing U.S. - Indonesia Higher Education Exchanges and Partnerships" will help students to register and to make them easier to get visa to the United States.

The U.S. Ambassador for Indonesia Scott Marciel said that the forum is a big opportunity for educational institutions in both countries to dig their potentials.

Based on data, there were 7,000 Indonesian students studied in the United States in 2009/2010.

Editor: Xiong Tong          

BP signs Indonesian coalbed methane deal

The Jakarta Post, Associated Press, Jakarta, Fri, 04/01/2011

BP PLC says it has signed four new production sharing contracts with Indonesian partners to access coalbed methane in the country.

BP said Friday that the four areas, covering some 4,800 square kilometers in the Barito basin of South Kalimantan, will complement existing operations in Indonesia.

BP has a 44 percent stake in one contract with Pertamina holding the remainder, and a 45 percent stake in the other three contracts with PT Sugico Graha holding the remainder.

Chief Executive Bob Dudley says the contracts awarded by the Indonesian government will tap BP's "significant experience and expertise in the development of unconventional gas."

The London-based company has recently signed agreements to access new resources in Indonesia, China, India and Australia.

Govt to maximize use of new energy

Antara News, Wed, March 30 2011

Jakarta (ANTARA News) - The government will maximize the use of new and renewable energy, especially geothermal, hydro-energy and bio-fuels, before deciding to use nuclear energy.

Energy and Mineral Resources Ministry`s Director General for Renewable Energy and Energy Conservation Luluk Sumiarso said here on Tuesday that the use of nuclear energy would be the last option.

"But the last option does not meant that nuclear is not prepared. It will remain being prepared but we are now still maximizing the use of other new and renewable energy such as geothermal, hydro-power, and bio-fuels which have a big potential for development," Luluk said.

According to him, the plan to build nuclear power plants (PLTN) would continue to go ahead with the principle of conformity, readiness, and safety.

"But the use of nuclear energy needs a political decision," Luluk said, adding that the case of nuclear power plant in Fukushima, Japan, would be a lesson for Indonesia.

He also said the government was revising the rules of new and renewable energy utilization in the energy mix that was previously targeted at 17 percent to be 25 percent in 2025.

"The revision of the energy mix is made by including nuclear and non nuclear," Luluk said.

He said the government would also make every effort to speed up the utilization of the new and renewable energy.

Therefore the government is currently carrying out the construction of the second phase 10,000 MW power plant with most of its energy will come from geothermal and hydro-power.

It is the target of the government that the geothermal capacity will increase by 2,000 MW in 2012 and rises to 5,000 MW in 2014 because the the country`s geothermal potential is 29,000 MW.

Luluk said that aside from geothermal energy, his party would also review the development of bio-fuels.

Editor: Suryanto

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Weda Bay Nickel plans US$4.5bl investment in Central Halmahera

The Jakarta Post, Sun, 03/27/2011

Mining firm PT Weda Bay Nikel (WBN) said Sunday it had allotted US$4.5 billion for nickel mining and development of a processing factory in Ternate, Central Halmahera regency.

WBN spokesman Olivier Beligon said initial investments began in 2006 for mining exploration.

Beligon said the company would start constructing a nickel processing factory in 2012 with a total capacity of 65,000 tons.

“The factory will absorb 4,000 workers,” he said, as quoted by kompas.com.

French mining firm Eramet controls 90 percent of WBN shares.

Japan provides Rp319 billion for e-education program in Yogya

Antara News, Sat, March 26 2011

Yogyakarta (ANTARA News) - The Japanese government, through the Japan International Cooperation Agency (JICA), has provided funds amounting to Rp319 billion for the implementation of an e-education program at 500 schools in the Yogyakarta Special Region.

"We provide financial support for the project implementation program on utilization of information and communication technology to improve education quality and equity in the Yogyakarta Special Region," a JICA representative, Ohara. said here, Saturday.

According to Ohara, with the information and communication technology facility in schools, the teachers and the students can use it maximum in order to improve the quality of education.

"The teachers can also use those tools to develop teaching materials so that the process of teaching and learning in schools can take place more attractively," Ohara noted.

Meanwhile, the Governor of Yogyakarta, Sri Sultan Hamengkubuwono X said, to realize the success of the program it needs a play role of government, people and the world of education to jointly work together in building an information and communication technology-based education.

According to the governor, with that synergy, in 2020 Yogyakrata is expected to become a leading education region in Indonesia and even in the world.

"The success of the program can be implemented in other provinces so the goal in forming the intelligent and responsive future generation to information and communication technology can be achieved," he said.

Meanwhile, according to the director general of information application, the ministry of communication and information, Aswin Sasongko, the launching of the program with theme "Learning Without Limits" is to create learning opportunities for elementary and junior high school students without being tied to space and time.

"The program is funded by the Japanese government through JICA and it is a cooperation between the ministry of communication and information with Yogyakarta provincial administration through education, youth and sports office and it will be implemented in 500 schools in Yogyakarta," Aswin noted.

According to him, the program includes information and communication technology tools, learning content and training.

The implementation of the program was started in 2010 by building internet data center (IDC), network communications, procurement of the device in 110 schools, teaching materials, content development, teacher training and disbursement of block grant funds.

"The next step will be implementation in 2011 for 240 schools and 150 schools in 2012. Starting in 2012, the learning system will be implemented in other provinces," Aswin explained.

Editor: Ruslan Burhani

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Australia offers 400 scholarships to E. Nusa Tenggara

The Jakarta Post, Jakarta | Fri, 03/25/2011

The Australian government is offering up to 400 postgraduate scholarships exclusively to residents of the Indonesian province of East Nusa Tenggara.

“This year we are offering 400 scholarships, for master's and doctoral degrees, to East Nusa Tenggara,” Australia Awards Promotion coordinator Nunik Kristiani said Friday in Kupang, the provincial capital.

Nunik made the statement after a meeting with East Nusa Tenggara Governor Frans Lebu Raya, during which she asked for the latter's permission to promote the program, as well as his support.

“We hope people in East Nusa Tenggara are interested in pursuing postgraduate studies,” Nunik said, as quoted by tempointeraktif.com.

She said East Nusa Tenggara was Australia's top priority in its scholarship program aimed at Indonesians.

Nunik said a three-month English course would be provided for interested applicants.

Timor Leste interested in buying Indonesia-made ships

The Jakarta Post, Associated Press, Antara | Wed, 03/23/2011

Leste is interested in buying fast patrol boats produced by Indonesian shipbuilder PT PAL and has asked Indonesia to provide an export credit for the purpose.

Defense Minister Purnomo Yusgiantoro said at the presidential palace after accompanying President Susilo Bambang Yudhoyono in a meeting with visiting Timor Leste Primer Minister Kay Rala Xanana Gusmao here on Tuesday that Timor Leste would buy two FPB boats each worth around US$20 million.

"They discussed it just now and the government is ready to provide an export credit through Indonesia`s export financing body. The price is about US$20 each and they (Timor Leste) have ordered two units," he said.

Besides fast patrol boats Timor Leste was also interested to increase military cooperation especially in the field of training by sending its officers to participate in Indonesia`s National Defense Institute (Lemhanas), Staff and Command College (Sesko) and Defense University (Unhan).

"(They) wish to increase military cooperation and military education. They wish to participate in Lemhanas, Sesko and Unhan. We have so far also received participants from other countries," he said.

Besides Timor Leste a number of countries in Southeast Asia have also been interested to buy Indonesia`s strategic industry products such as the Philippines, Brunei Darussalam and Malaysia.

Purnomo said the Philippines had expressed its interest in landing platform dock (LPD) ships which could accommodate helicopter and be used for transporting troops and in natural disaster handling operations.

Malaysia meanwhile has ordered ANOA tactical vehicle produced by arms industry PT Pindad while South Korea has ordered CN 235 aircraft produced by PT Dirgantara Indonesia, Purnomo said.

Prime Minister Xanana Gusmao would be in Indonesia until March 25. Besides meeting with President Yudhoyono he was also scheduled to give a lecture at state University of Indonesia and attend an international defense convention here.

Nuclear Power Not Needed in Indonesia: PLN

Jakarta Globe, Ririn Radiawati Kusuma, March 23, 2011

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State Electricity Company (PLN) says it does not need nuclear power plants — yet.

The comments follow a continued effort by the National Nuclear Energy Agency (Batan) to push for the use of nuclear energy in Indonesia despite an international backlash due to the ongoing nuclear disaster in Japan.

“Commercially, Indonesia does not need nuclear power plants yet,” PLN president director Dahlan Iskan told the Jakarta Globe on Wednesday.

He said producing nuclear energy was more expensive than producing electricity from coal and gas.

He said as well as coal and gas, which Indonesia had in abundance, other options included renewable energies, such as hydro and geothermal.

He did, however, say that it would be good for Indonesia to begin preparations for the possibility of using nuclear energy.

Batan is now focusing on the island of Batam as a proposed site for a nuclear power plant. Batam lies uncomfortably close to the major fault line that produced the 2004 Indian Ocean earthquake and tsunami.

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Garuda allowed to fly directly to Syria

Antara News, Tue, March 22 2011

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Jakarta (ANTARA News) - Syria is to allow Indonesian flag carrier Garuda to fly directly to the Middle-Eastern country, chief economic minister Hatta Rajasa said here on Tuesday.

"They have offered Garuda to conduct direct flights to Syria based on the freedom right," he said after holding a bilateral talk with visiting Syrian Deputy Prime Minister Abdullah Al-Dadari.

He said the opening of Garuda direct flights to that country was one of the topics discussed at the meeting.

The meeting also discussed implementation of Greater Arab Free Trade Agreement (GAFTA), Syria`s plan to implement infrastructure development with support of project officers from Indonesia and Syria`s plan to purchase helicopters from PT Dirgantara Indonesia.

"The Syrian deputy prime minister has already visited Bandung, the location of PT Dirgantara Indonesia and the Bandung Institute of Technology (ITB)," he said.

During the visit to ITB Syria built education cooperation with regard to its plan to build a petroleum university.

"We will immediately follow up the cooperation by discussing it at a ministerial level," he said.

Indonesia and Syria has set up a business cooperation council on October 13, 2010 as a forum for developing business network and exchange of information between the two countries` businessmen and investors.

The two countries` governments are supporting cooperation between private parties for the development of economic, trade and investment cooperation.

Editor: Jafar M Sidik

Germany's Metro Group to open local outlet in 2012

Rangga D. Fadillah, The Jakarta Post, Jakarta | Tue, 03/22/2011

German-based retail giant Metro Group said on Tuesday it would open the first of about 20 planned retail outlets in Indonesia by 2012.

Metro Group chief executive officer Eckhard Cordes said in a press statement that over the past several years, Asian countries, including Indonesia, have emerged as potential targets for retailers seeking to expand their businesses.

“The presence of Metro Cash & Carry in Indonesia will create great momentum for our business expansion in the Asian market,” he said.

Cordes said Metro would open around 20 Metro Cash & Carry outlets across Indonesia, with the first to open in 2012, if the economic conditions in Asia remained stable.

In the past 15 years, Metro Cash & Carry has opened stores in China, India, Japan, Vietnam and Pakistan. Indonesia would be the 31th country in the world that to have Metro Cash & Carry outlets, according to the release.

“With …a fast-growing economy and strong domestic consumption, Indonesia offers abundant potential for our retail business,” Metro Group management council member WH Muller said.

Indonesia to Invest in Oil, Mining in East Timor

Jakarta Globe, March 22, 2011

President Susilo Bambang Yudhoyono, right, drives East Timor Prime
Minister Xanana Gusmao in a golf cart during the latter's visit to the presidential
palace in Jakarta on Tuesday. Gusmao and Yudhoyono discussed bilateral issues
between the two countries. (AFP Photo)

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The Indonesian government has expressed an interest in investing in oil and mining infrastructure, among other industries, in East Timor.

“Economic cooperation is vital to developing infrastructure, trade and tourism in East Timor,” said Teuku Faizasyah, the presidential staff for international relations, at a press conference after a meeting between President Susilo Bambang Yudhoyono and East Timor’s Prime Minister Xanana Gusmao at the Presidential Palace on Tuesday.

“Indonesia is willing to invest in the oil and gas sectors,” he said.

The Indonesian government was responding to a bid from the East Timor government to encourage Indonesian investment in the country.

“The Indonesian government positively welcomes the invitation,” Teuku said.

Indonesia on Tuesday also offered its neighbor export credit facilities to purchase military equipment. But Teuku could not confirm the value of the export credit, as it would be discussed in further bilateral meetings between the two heads of state.

Yudhoyono and Xanana on Tuesday witnessed the signing a number of memorandums of understanding (MoU) by ministers from the two countries — including MoU on education and training, tourism and trade, infrastructure development, technical cooperation to decentralize government sectors, marine and fisheries, and transportation.

Prime Minister Xanana is scheduled to remain in Indonesia until March 25.

After his meeting with the president on Tuesday, Xanana was scheduled to give a public lecture at the University of Indonesia.

Antara

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Indonesia, Singapore to develop BBK Free Trade Zone

Antara News, Fri, March 18 2011

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Batam, Riau Islands (ANTARA News) - The Indonesian and Singaporean governments cooperate in the development of Batam, Bintan and Karimun into an industrial zone competitive against other such projects in Asia and the Pacific.

A Working Group set up by the two countries on Wednesday agreed to develop the electronic, shipbuilding and network storage and server industry in Batam.

"This time we discussed action plans in exploring more than one sector for development, namely the electronic industry, ship building and network storage and servers," said Luky Eko Wuryanto who co chairs the group in Batam on Wednesday.

In addition to determining the three industries which will be developed in Batam the two countries will also discuss special incentives at Batam, Bintan, and Karimun free trade zone (BBK-FTZ).

"We are considering incentives expected by the investors," the official who is also deputy minister coordinating the economy of infrastructures and regional development.

In the meeting, Singapore also agreed to increase capacity building in running the BBK-FTZ by way of trainings with the special assistance of the Singapore government.

On the same place and occasion, Chairman of the Singapore Economic Development Board Leo Yip said the working group also agreed to seriously develop Batam, Bintan and Karimun.

In the meantime Assistant Deputy Minister for Infrastructure of Water Resources of the Ministry Coordinating the Economy Purba Robert Sianipar said actually many industries would be developed in Batam, but the working group agreed to develop several of them only for the same of efficiency and practicality.

The electronic, ship building and network storage and server industry in Batam on the basis of the global investment trend.

He said the cooperation between the two countries is not only in drawing up a concept favorable to fellow naighbouring countries. The Singapore government is also agreed to conduct a joint promotion in introducing Batam in the world business.

In the meantime, besides cooperation in the development of Batam, the two countries also agreed to set up a working group for the development of manpower, investment, air transportation, tourism and agribusiness.

The working group was the result of a meeting between President Susilo Bambang Yudhoyono and the Singapore Prime Minister on May 17, 2010.

Editor: B Kunto Wibisono

Japan Asks for More LNG, Oil Supply From Indonesia

Jakarta Globe, March 17, 2011

An undated company handout photo showing a transport ship docked
at the Bontang LNG plant in Bontang, East Kalimantan. Indonesia,
the world’s third-largest exporter of liquefied natural gas, has said it
was prepared to ship more of the cleaner-burning fuel to Japan if needed.
(Bloomberg Photo)

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Japan asked Indonesia on Thursday to supply it more liquefied natural gas (LNG) and oil after a devastating earthquake crippled a nuclear power plant.

"After the tsunami and earthquake, Japan's nuclear power plant is damaged and we have a massive shortage of electricity...therefore I asked Indonesia's government to add to its imports of liquid gas and crude oil to Japan," Japan's vice minister of foreign affairs Makiko Kikuta told reporters in Jakarta.

Indonesia, a former OPEC oil producer, is the world's third-largest LNG exporter and largest exporter of thermal coal for power plants.

On Monday, Gde Pradnyana, a spokesman at BPMigas, said Indonesia was prepared to ship more of the cleaner-burning fuel to Japan if needed.

The supplies “will come from excess capacity at Bontang plant,” Pradnyana said, adding that there are still 20 cargoes available for sale from the plant in East Kalimantan province.

BPMigas said in July that Indonesia will offer 60 cargoes of LNG from Bontang, Tangguh and Arun plants to buyers from countries including Japan through 2012.

Arun in Aceh province and Bontang produced more than 95 percent of Indonesia’s LNG in 2009, according to Bloomberg calculations based on official data.

LNG is natural gas chilled to liquid form for transportation by ships to places not connected by pipelines. Qatar and Malaysia are the world’s largest and second-biggest exporters of the fuel, respectively.

Reuters, Bloomberg

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RI sending mitigation team, US$2 million in aid to Japan

Antara News, Wed, March 16 2011

Marty also said Indonesia was also helped by Japan every time it was hit by a natural disaster and it was very reasonable and appropriate if on this occasion Indonesia assisted Japan in its time of need.

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Jakarta (ANTARA News) - The Indonesian government is sending a disaster mitigation team and two million US dollars in aid to help Japan recover from its recent disaster, Foreign Minister Marty Natalegawa said.

Speaking at a press conference with Japan`s Parliamentary Vice-Minister for Foreign Affairs Makiko Kikuta at the Foreign Affairs Ministry here Wednesday, Marty said the 11-member disaster mitigation team would depart on Thursday, March 17, 2010.

Along with the disaster mitigation team, the Indonesian government would send funds for disaster aid amounting to two million US dollars.

"Besides sending a disaster mitigation team that is to be dispatched tomorrow (Thursday, March 17) consisting of approximately 11 people from Indonesia, the Indonesian government has also decided to provide a two million US dollar donation or contribution to the Japanese people and government," said Marty.

Marty also said Indonesia was also helped by Japan every time it was hit by a natural disaster and it was very reasonable and appropriate if on this occasion Indonesia assisted Japan in its time of need.

"In situations like this where an extraordinary natural disaster has occurred, we must not think as a country only but also as one humanitarian act that move together hand in hand in cooperation to assist the revival of the Japanese people," said Marty.

The arrival of Japan`s Parliamentary Vice-Minister for Foreign Affairs Makiko Kikuta to Indonesia is to co-chair with Indonesia in the ASEAN Regional Forum Disaster Relief (ARF DiREx) which opened on Wednesday in Manado, North Sulawesi, and the "Priority Metropolitan Area" event, Kikuto is determined to make a success out of these two activities.

"In this visit I also met with Indonesian Vice President Boediono and a number of ministers who expressed their concerns and condolences for what happened in Japan," said Kikuta.

According to Kikuta, the Government of Japan highly appreciated Indonesian attitude in providing concrete assistance in the current Japanese situation where the situation is still chaotic after being hit by a 9-magnitude earthquake and tsunami.

The disaster is reported to cost almost 1000 casualties and about 2000 people are stated missing.

Until now the Indonesian government through its Embassy in Tokyo also had to deploy evacuation team for the citizens and to assist the Japanese government in overcoming the impact of natural disasters.

"I appreciate a lot for Indonesian support and assistance. Indonesia has managed to rise from some natural disaster that passed earlier, and then the people of Japan are also sure to rise again after this disaster," said Kikuta.

Editor: Heru

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Australia donates 3 patrol boats to RI to curb people-smuggling

The Jakarta Post, Jakarta | Wed, 03/16/2011

The Australian government will donate three patrol boats worth a total of US$5 million to Indonesia to help tackle the issue of people-smuggling through Indonesian-Australian waterways.

"The high-speed patrol boats will be placed in a number of strategic locations in Indonesia,” Australian Home Affairs Minister Brendan O'Connor said on Wednesday after meeting with Indonesian National Police chief Gen. Timur Pradopo at the National Police headquarters in Jakarta, tempointeraktif.com reported.

The three boats are currently being worked on by an Australian company in three different locations: Perth, Australia, Vietnam and Singapore.

Australia also donated $4.8 million to upgrade equipment and facilities at the Indonesian National Police's cyber crime center.

OZ investor wants to develop dairy cow farm in E. Java town

The Jakarta Post, Jakarta | Wed, 03/16/2011

An Australian investor has expressed interest in developing a dairy cow business in the East Java town of Lumajang in partnership with a local firm.

Lumajang administration economic division head Nurul Huda stopped short of naming the Australian investor, but added he and the local investor, PT Mahesa Agri Pratama, considered Lumajang a good place to develop such a business.

“It's good in terms of climate. Besides, we have abundant potential cow food here,” Nurul said in Lumajang on Wednesday, as quoted by tempointeraktif.com.

She said Pronojiwo, Pasrujambe and Candipuro districts in the East Java town were now being eyed as the center for the dairy cow business.

Nurul added that the two investors had sent their envoys to discuss their interest with the local administration, and had calculated the potential profits.

They are also planning to build a milk factory for export purposes, she said.

Lumajang Farming Agency head Gatot Subiyantoro said there were currently 5,000 cows in Lumajang, 4,500 of which produced milk. The number of cow farmers in the area is 1,100 people, who comprise 100 farmer groups, he added.

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Daihatsu Motor to invest $400m in Indonesia

The Jakarta Post, Jakarta | Wed, 03/16/2011

Automaker Daihatsu Motor Company Ltd on Wednesday announced plans to invest US$400 million on its factory in Indonesia.

“The investment will not only be allocated to expanding the existing factory, but also to improve its technology and development,” Astra Daihatsu Motor president director Sudirman said after a meeting with Vice President Boediono on Wednesday, as quoted by kontan.co.id.

With the investment, the Daihatsu factory will have an expected production capacity of 100,000 vehicles a year and absorb 1,400 workers. At present, the company produces 330,000 vehicles in Indonesia each year.

“We will export 15 percent of our output,” Sudirman said.

Lotte Group to open 10 fast food restaurants in Jakarta

The Jakarta Post, Jakarta | Wed, 03/16/2011

South Korean firm Lotte Group said on Wednesday it will open 10 fast food restaurants in Greater Jakarta this year.

The restaurant, to be named Lotteria, will be established jointly with AJBS Group, which will owns 49 percent of its shares.

“In the next five years, we expect to open 100 Lotteria in Greater Jakarta,” Lotteria director Yi Su Il said.

The company said it planned to open 100 new branches across Greater Jakarta over the next five years.

Japan investment in RI will continue as scheduled despite tragedy: Minister

The Jakarta Post, Jakarta | Tue, 03/15/2011

Japan’s investment plans in Indonesia will continue as scheduled despite the recent massive earthquake and tsunami, a senior minister says.

That investment includes the US$24 billion Metropolitan Priority Area (MPA) infrastructure project in Greater Jakarta.

After speaking with Japan’s ambassador to Indonesia, Coordinating Minister for the Economy Hatta Rajasa said the “kick-off meeting” for the MPA project will be held on March 17 as scheduled.

Hatta said the powerful quake that struck Japan would not impede the recent investment commitments of a number of the country’s major companies.

“All of the programs that have been committed to by Japan will still be realized. So far, everything is still on track, nothing has been delayed. Geothermal, MRT, transportation projects, JBIC [Japan Bank for International Cooperation], all are still ongoing,” he said Monday.

A significant growth in investment helped push Indonesia’s economy to grow above expectations last year at 6.1 percent. Japan was the fourth largest foreign investor in Indonesia in 2010, with total investments worth $712.6 million.

The Japanese Chamber of Commerce’s delegates visited Indonesia last month and pledged to invest up to $60 billion for the development of several economic corridors in Java and Sumatra.

The investments will be directed to five main sectors: transportation and infrastructure, electricity, industrial areas, clean water and oil and gas, Japan Business Federation (Nippon Keidanren) chair Hiromasa Yonekura said.

Included in Japan’s investment commitments are Japanese car maker Astra Daihatsu Motor’s Rp 2.1 trillion plan to build a new factory in East Karawang, West Java, this year; Mitsubishi Corporation’s $18 billion investment program for various projects over the next five years; and the ¥2 trillion ($24 billion) deal between the Japanese government and private firms to finance the construction of infrastructure in Greater Jakarta and surrounding areas scheduled to commence in 2013.

“The key is Japan’s rehabilitation and reconciliation. We have suffered the same thing so we understand. And we appreciate Japan’s commitment to continue the MPA project,” Hatta said, referencing the devastating 2004 tsunami that killed more than 130,000 people in Aceh.

Last Friday, Japan was struck by a powerful 8.9-magnitude earthquake off the country’s northeast coast, which triggered a tsunami that has been estimated to have killed at least 10,000 people.

Edy Putra Irawady, the deputy to the coordinating minister for the Economy, said Japan might move some of its production factories overseas to Indonesia to ease business activity in the country in the midst of its post-disaster recovery.

“The officials said that Japan’s program and projects in Indonesia are still ongoing, in fact they are offering cooperation in the construction of trade facilities,” he said after meeting with Japanese authorities in Tokyo.

“The tsunami only affected the Sendai port and Yokohama — I was worried that the electricity shortage would affect production but it turns out that Japanese firms can move their production activities overseas, including to Indonesia,” Edy said.

Government officials, businessmen and economists have been worried about Indonesia’s investment prospects with Japan, saying it may take time for Japan’s economy to recover from the disaster, which heavily damaged basic infrastructure such as seaports, power plants and roads.

— JP/ Esther Samboh