S Korean tire maker to invest Us$353 mln in RI

Antara News, Thu, June 9 2011

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Jakarta (ANTARA News) - South Korean tire maker Hankook Tire will invest 353 million US dollars in Indonesia to build factories that are to employ a total of about 2,800 people by 2018.

"Building a factory in Indonesia which is in the middle of the global market is a decision that will be beneficial for the economy of Indonesia and also Hankook Tire," said CEO of Hankook Tire, Seung Hwa Suh, at the inauguration of a tire plant in Bekasi, West Java, on Thursday.

In the initial phase, he said, Hankook Tore will invest 353 million US dollars with an initial production capacity of about 6 million tires per year.

Hankook Tire also plans to have hired about 1,400 workers by 2014 and 2,800 by 2018.

"Hankook Tire is to make a strategic investment in Indonesia to meet the high demand for high-quality tires for its globally expanding business," he said.

Indonesia is considered a promising country because it is one of the world`s largest rubber producers with a total production of 2.92 million tons in 2010.

In addition, tire sales in Indonesia in 2010 increased by 23 percent from 2009, or approximately 49.5 million tires.

The factory which is worth a total of 1.1 billion U.S. dollars is planned to have four major production facilities covering an area of ​​60 hectares and will become an export base for the North American market and the Middle East as well as a regional hub for developing countries in Asia.

In addition to the factory in Bekasi, Hankook Tire also has two factories in South Korea, three factories in China, and one factory in Indonesia.

"The new plant will open an important opportunity for us to improve our global status into the top five," said Seung Hwa Suh.

Meanwhile, Minister of Industry, MS Hidayat expressed happiness for the fact that Hankook Tire has choosen Indonesia as a location to develop a global business strategy.

Head of Investment Coordinating Board (BKPM) Gita Wirjawan believe the investment will improve bilateral relations between Indonesia and South Korea.

Editor: Jafar M Sidik

AT&T Wins Indonesian License to Expand Multimedia Services

Jakarta Globe, June 08, 2011

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AT&T Inc., the second-largest US wireless provider, said it won a license to provide multimedia services in Indonesia, allowing it to expand into services including teleconferencing and managing computer networks.

PT AT&T Global Network Services Indonesia, the local venture 95 percent owned by ATandT, is the first foreign operator granted the permit in Indonesia, Roman Pacewicz, AT&T senior vice president of marketing and global strategy for business solutions, said in a telephone interview from Dallas On wednesday.

AT&T will invest about $1 billion this year to enhance services on its global network offering cloud computing and mobile applications to help businesses increase productivity and cut costs, the Dallas-based company said in May.

Indonesia’s economy, Southeast Asia’s biggest, will probably expand 7 percent annually on average in the next five years, Nomura Holdings Inc. said in a report on Tuesday.

“This operating license will allow us to deliver services more seamlessly and effectively as the Indonesia market grows,” Pacewicz said.

Previously, AT&T relied on local partners to help set up virtual private networks for customers, Pacewicz said. The company’s local venture will now expand to provide services including video conferencing directly to customers, he said.

The wireless service provider’s worldwide sales from business solutions including Ethernet, virtual private networks and hosting gained 19 percent in the first quarter from a year earlier.

AT&T will also look for opportunities in Vietnam, where government is easing controls, he said.

Bloomberg

Oz disburses Rp 4.5t in grants for education in RI

The Jakarta Post, Jakarta, Wed, 06/08/2011

Australia has disbursed Rp 4.5 trillion (US$526.5 million) in grants to support priority education programs in Indonesia for the 2010-2014 period, including for workshops to support the School Operational Aid (BOS) policy.

The grants were officially handed over by AusAID's Minister-Counsellor for Jakarta Jacqui de Lacy to Indonesian National Education Minister Mohammad Nuh at a ceremony in Jakarta on Tuesday.

Nuh said the funds would be used to improve the quality of education across Indonesia's elementary and junior high schools, including Islamic schools, in support of the nine-year compulsory education program.

He added that one of the priority programs for this funding would be to organize training for schools to better manage BOS funds disbursed by the central government.

“Schools across Indonesia need pushing and full support in using the BOS funds they've been receiving. It is important for schools to understand the essence of planning, responsibility, supervision and evaluation [in the implementation of BOS],” Nuh said after the ceremony, as quoted by tempointeraktif.com.

Garuda cares about forest reservation

Antara News, by Otniel Tamindael, Tue, June 7 2011

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akarta (ANTARA News) - To make a valuable contribution to the fight against global climate change, state-owned airline company PT Garuda Indonesia cares deeply about forest preservation.

The company has carried out tree planting activities to help sustain forests in in a number of areas across the country to provide wider environmental and socio-economic benefits.

In the Gunung Padang forest area in West Sumatra, national flag carrier Garuda Indonesia Airlines planted thousands of trees recently.

"Thousands of the trees Garuda has planted at Gunung Padang forest area are made up of various kinds including Mahogany and Meranti," Garuda Padang branch general manager Dedi Irawan said in Padang on Sunday.

In the natural rain forest, Mahogany is a very large canopy tree, sometimes reaching over 150 feet in height with trunks sometimes more than 6 feet in diameter above a large basal buttress.

Mahogany is a generally open-crowned tree with gray to brownish-red fissured bark, and is regarded by many as the world`s premier wood for fine cabinetry, high-class furniture, pianos and other musical instruments, figured and decorative veneer, interior trim, and carving.

Besides Mahogany, Meranti is also an important emergent tree of the tropical forests in Asia. Its wood is light to medium weight and widely used for light construction and more importantly for veneers.

Many other forest products are derived from Meranti, which is classified in the division Magnoliophyta, class Magnoliopsida, order Theales, family Dipterocarpaceae.

Dedi Irawan said the Mahogany and Meranti tree planting activity by Garuda Indonesia was conducted at Gunung Padang in West Sumara because he area has been deforested.

"If reforestation is not done immediately at Gunung Padang forest area, it will would have a bad impact on the people living nearby," Dedi Irawan said.

According to him, sustainable reforestation at critical land through the government projects and public participation was one way to prevent any future natural disasters such as floods.

"The tree planting activity to help prevent erosion and restore critical land because of illegal logging is part of Garuda Indonesia`s concern for environmental damage," Dedi Irawan said.

"Forest is a buffer for the life of surrounding communities, and therefore Garuda Indonesia is very concerned about the destruction of forests due to illegal logging," he added.

Dedi said the tree planting activity at Gunung Padang forest area by Garuda was in cooperation with Padang city administration

to restore forest sustainability.

He added that Garuda started environmental care program of "One Passenger One Tree in 2007 as part of its Corporate Social Responsibility (CSR Garuda Indonesia).

Garuda Indonesia also carried out tree planting activity in Aceh province in January last year in cooperation with the International Leuser Foundation (YLI) and the provincial government of Aceh to help sustain the forests in the province.

At the time Garuda President Director Emirsyah Satar said the planting of 24,000 trees in Aceh reflected the state-owned airline company`s care about forest preservation and community economic improvement.

According to garudamagazine.com, Garuda Indonesia has realized an environmental protection program to help mitigate global climate change by rehabilitating the forest through tree replanting at Sebangau National Park in Central Kalimantan following the signing of memorandum of understanding (MoU) in November 2007.

The reforestation in the Sebangau National Park covers an area of 250 hectares and involves 100,000 trees, which were planted by setting aside part of the proceeds from ticket sales to passengers flying on Garuda Indonesia routes from Australia and Japan.

In his remarks, Emirsyah Satar said at the time that the tree planting activity was in line with Garuda Indonesia`s program of concern for natural conservation and also with the efforts of the global aviation industry to achieve "clear sky" operation by 2050.

Emirsyah Satar also noted that the activity was expected to create opportunities for economic improvement for the local community through development of ecotourism in Sebangau National park, much as Garuda Indonesia has already done in Yogyakarta through the "One Passenger One Tree" program.

An agro-ecotourism zone has been developed in Karang Tengah, Yogyakarta, through planting of 50,000 Mahogany and Cashew trees, from which golden silk would be produced that is unique in the world.

Garuda Indonesia has done this for several interrelated reasons: to spur more tourists to visit Yogyakarta, especially those who are interested in agro-ecotourism; to empower and foster local silkworm farmers; and to conserve the environment by planting trees with productive economic value.

Carbon Positive believes that tree planting can and will make a valuable contribution to the fight against global climate change.

It believes that carbon markets in their various forms are key to providing an effective means of financing tree-planting activities on the scale needed to make a difference globally.

Planting trees is hugely beneficial to the world in the face of accelerating climate change for there is a strong international scientific consensus that human activity is causing global warming.

At a local level, tree planting on deforested lands will create further environmental benefits because forests play a vital role in regulating water supplies, helping to reduce both water shortages in times drought and damaging floods in heavy rains.

Forests also provide habitats for a wide array of plants and animal species, a number of which are threatened with extinction by deforestation.

Therefore Garuda Indonesia`s care about forest preservation is expected to help support the local community`s livelihood, and through its tree planting activity, Garuda is a pioneer in conservation among state-owned enterprises.

Editor: Priyambodo RH

Applications for 2012 Australian development scholarships now open

Antara News, Mon, June 6 2011

Jakarta (ANTARA News) - The Australian Government is pleased to announce that applications for Australian Development Scholarships (ADS) are now open, the Australian Embassy here said in a media release on Monday.

The program will offer up to 400 scholarships to Indonesians to study for Masters or Doctorate degrees in Australia and whose studies contribute to Indonesia`s progress.

Australia`s ambassador to Indonesia, Greg Moriarty, said the Australian Development Scholarships have been an important component of the Australian Government`s overseas aid program to Indonesia since 1950s.

"Australian Development Scholarships aim to contribute to long-term human resource development goals in Indonesia and to strengthen people-to-people links between our two countries," said Ambassador Moriarty.

Australian Development Scholarships are targeted at advancing development priorities which are set each year by Australia and Indonesia. In 2012, these include Sustainable Growth and Economic management; Democracy, Justice and Good Governance; Investing in People; and Safey and Peace.

"This program is conducted in close partnership with the Indonesian government. The impact of the program is visible through the thousands of ADS alumni who have returned to Indonesia and contributed to Indonesia`s progress," said the ambassador.

An equal number of scholarships will be allocated to men and women and up to 30 per cent to people from East Nusa Tenggara, West Nusa Tenggara, Papua, West Papua and Aceh, the focus areas for Australia`s aid program.

Applications for the 2012 intake close on August 26, 2011.

Editor: Aditia Maruli

U.S. donates patrol boats to RI national police

Antara News, Fri, June 3 2011

Jakarta (ANTARA News) - The U.S. Departments of Justice and State recently delivered two boats to the Indonesian National Police as part of the Indonesia Maritime Security Project (MARSEC), The U.S. Embassy here said in its official website on Friday.

The two boats increase to 19 the total number of boats provided to Indonesia as part of the MARSEC program. The patrol boats are deployed throughout the archipelago to assist Indonesia in securing vital maritime borders, sea lanes, natural resources, and ports.

In the first year of operation, the U.S.-provided boats seized over $10 million USD in contraband and continue to be an integral and effective component of Indonesia`s maritime security efforts.

Currently, the patrol boats are deployed in Batam-Riau, Sumatra; Bangka Island Straits, Balikpapan; Tarakan, Kalimantan; Bitung, North Sulawesi; Sorong, Papua; and Ternate-Sofia, North Maluku.

The United States Department of Justice International Criminal Investigative Training Assistance Program`s (ICITAP) mission in Indonesia is to support the development of the operational and organizational capacity and competencies of the Government of Indonesia`s law enforcement agencies.

ICITAP is funded by the U. S. Department of State`s Bureau for International Narcotics and Law Enforcement Affairs (INL) and provides organizational development interventions, technical assistance, training, and equipment donations to augment Indonesia`s law enforcement efforts.

ICITAP support helps the Indonesian National Police continue its transition to a professional democratic law enforcement organization utilizing internationally accepted law enforcement standards and practices.

Editor: Jafar M Sidik

J-Power, Adaro, Itochu win $3.2 bln Indonesia power plant

Reuters Africa, Thu Jun 2, 2011

JAKARTA, June 2 (Reuters) - A consortium of Japan's Electric Power Development Co (J-Power) , Itochu Corp and Indonesian coal miner Adaro Energy have won a tender to develop a $3.2 billion coal-fired power plant in Java, Indonesia's state power firm Perusahaan Listrik Negara (PLN) said on Thursday.

The 2,000-megawatt power plant marks the first public-private partnership (PPP) project among many that Indonesia's government is hoping for to overhaul its infrastructure, said Dahlan Iskan, PLN's CEO.

He said risks in the project's development would be covered by the Indonesia Infrastructure Guarantee Fund, set up for government initiated infrastructure projects.

"The tender is a milestone for PLN and the Indonesian government, because this is the first public-private partnership project that was auctioned successfully," Iskan said in a press statement.

Power shortages are common in Indonesia, where poor infrastructure is one of the factors restricting growth in Southeast Asia's largest economy. The government says it needs $150 billion in infrastructure and is looking for two-thirds from private investors.

President Susilo Bambang Yudhoyono launched a "masterplan" last month to drive the country to become a world top ten economy by 2025, including many planned PPP projects.

The consortium's Pemalang power plant is expected to begin operations in 2017.         

(Reporting by Alfian; Editing by Neil Chatterjee) 

INDONESIA : Indonesia gets US$ 890 million World Bank loans

Tendersinfo News, June 1, 2011

Indonesia gets US$ 890 million World Bank loans to support infrastructure projects in the country. The first loan, worth US$ 640 million loan will be allocated for the construction of a pumped storage hydropower plant to support the increasing electricity needs of the nation. The Upper Cisokan Pumped Storage Hydropower project will be the first facility of its kind in Indonesia. The facility will be located near Bandung in west Java.

World Bank senior energy specialist Leiping Wang said, Pumped storage is the only form of technology that allows you to efficiently store large amounts of energy and quickly respond to peak electrical demand. The Upper Cisokan project will make Indonesia one of very few developing countries to have such a power plant. Pumped storage plants generate energy by transferring water from two reservoirs built at different heights - energy is generated by releasing water from the high reservoir to the low reservoir to drive turbines. The water is pumped back to the higher reservoir at off-peak times. US$ 800 million plant will be developed by Indonesia's state-owned electricity company PLN, with the support of World Bank and the proposed facility will have the capacity to generate more than 1000 MW of electricity.

The second loan worth, US$ 250 million, will go towards the development of roads along the Western Sumatra corridor of the nation. The Indonesian Ministry of Public Works will manage the project, which aims to enhance around 716 km of national roads along the Western Sumatra corridor. The project will cover laying new asphalt wearing courses, replacing 194 m of bridges, improving drainage as well as widening the roads where necessary.

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Chandra Asri to build first butadiene factory in Indonesia

Antara News, Fri, June 3 2011

Jakarta (ANTARA News) - PT Chandra Asri Petrochemical Tbk (CAP) through its sister company, PT Petrokimia Butadiene Indonesia, will build the first butadiene factory in Indonesia.

For this purpose, the company appointed Toyo Engineering Korea Ltd as a contractor which had passed successfully the process of tender on May 27, 2011, the director of PT. Petrokimia Butadiene Indonesia, Suhat Miyarso said here on Thursday.

Butadiene is a combined raw material to produce synthetic rubber for tire and plastic-related automative components.

The appointment of Toyo Engeering Korea Ltd as the contractor practically marks an immediate construction of butadiene factory in Indonesia.

According to him, the Toyo Engineering Korea Ltd company submitted the best bidding prices among other three bidders from Korea and Italy.

The bidders which participated in the tender of butadiene factory construction were those who ever built such similar factories in other countries and had been granted with licenses from BASF. Of the whole criteria, Toyo Engineering Korea Ltd was named the winner, Suhat said.

Marked with the laying of ground breaking stone, the construction will be started in July this year on a 40,000 meters squire land still within the complex of the PT. Chandra Astri Petrochemical in Cilegon, Banten province.

Furthermore, Suhat said the construction work could be expectedly completed in 23 months under EPC contract (Engineering, Procurement and Construction). Hopefully, this first butadiene factory in Indonesia will come into commercial operation in May, 2013.

The total value of investment for the factory construction may reach USD110 million with a planned production capacity of about 100,000 tons per years.

He further stressed that most of the factory?s products would be used to meet domestic and export demands by applying such a license from BASF. The raw material for the production of butadiene like cruder C4 would be mostly supplied by PT. Chandra Asri Petrochemical and small portion of raw materials was to be imported.

According to Suhat, butadiene could be further processed into SBR (styrene butadiene rubber), ABS (Acrylonitrile butadiene styrene), SBL (styrene butadiene latex) and others.

SBR can be further used as raw materials to produce synthetic rubber, constituting components for tire and plastic related automative components industries.

So far the need for butadiene in Indonesia is still imported from foreign countries such as Korea and Japan.

With the operation of PT. Petrochemical Butadiene Indonesia later, the tire producers and national automative components will be able to trim the import cost, thus increasing the scale of production in addition to strengthening domestic petrochemical and automotive industries capable of recording a significant progress.

With domestic production of butadiene, all kind of tire production costs could be reduced, thus paving the way for national tire industries to make a speedy progress in the years to come, Suhat said

Editor: Suryanto

RI calls for increased use of outer space technology

Antara News, Thu, June 2 2011

London (ANTARA News) - Indonesian Permanent Representative to the United Nations in Vienna Ambassador I Gusti Agung Wesaka Puja has called for the increased use of outer space technology to support development activities in developing nations.

He made the call at a function to mark the 50th anniversary of the first manned flight in outer space and the 50th anniversary of the United Nations Committee on the Peaceful Uses of Outer Space (UNCOPUOS) in Vienna recently.

In an emailed statement to the ANTARA correspondent in London on Thursday, third secretary of the Indonesian Embassy in Vienna Luna Amanda Sidqi said the Secretariat Office for Outer Space based in Vienna was organizing a special function to mark the 50th anniversary of the first manned flight in outer space by Yuri Gagarin in April 1961.

In the course of the commemoration, the organizing committee is also holding an outer space technology expo at the Vienna International Center on June 1-30.

Ambassador I Gusti Agung Wesaka Puja went on to say outer space technology had grown rapidly but it had not been optimally used to help developing countries.

The Indonesian delegation to the event touched on developments in the use of outer space technology in Indonesia since the 1970s when the country launched Palapa telecommunication satellite in 1976.

By launching the Palapa satellite, Indonesia was the first developing nation to operate a satellite on its own, the delegation said.

The operation of the satellite had strengthened unity and cohesion of the Indonesian nation which was made up of various ethnic groups, and religious adherents inhabiting thousands of islands in the country.

In addition, it also helped efforts to mitigate the impact of natural disasters which frequently affected the country.

Looking ahead, the delegation said Indonesia needed to benefit from any opportunities to increase the use of outer space-based technology to support sustainable development through tele-education, tele-medicine and to provide information for climate change mitigation efforts.

Indonesia underscored the need of enhanced international cooperation in the use of outer space-based technology for various purposes such as remote sensing and disaster management, the delegation said.

Editor: Ruslan Burhani

Jakarta to host Turkey exports fair

The Jakarta Post, Jakarta | Thu, 06/02/2011

The Istanbul Exporters Association (IEA-IIB), in cooperation with the Turkish Embassy in Jakarta, will hold the Turkish Export Product Fair at the Jakarta Convention Center from June 2-4.

“We intend to increase the cooperation between Turkish and Indonesian businessmen in order to develop the bilateral trade relationship between both countries,” IEA-IIB chair Zekariye Mete said Thursday.

This is the second time Turkey has held such a fair in Indonesia.

Thirty-three Turkish companies from various industries including food and beverage, baby products, heavy equipment and furniture will participate.

Zekariye said Indonesia and Turkey were important developing markets.

“Indonesia is a rapidly developing country and has a strategic position in Southeast Asia,” he said as reported by kompas.com.

Australian govt expands bridge school partnership program

Antara News, Wed, June 1 2011 

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Jakarta (ANTARA News) - Australia`s Ambassador to Indonesia, Greg Moriarty, on Wednesday announced the continuation of the Australia-Indonesia Building Relations through Intercultural Dialogue and Growing Engagement (BRIDGE) program, the Australian embassy said in its media release on Wednesday.

The ambassador announced the program during a visit to SMAN 15 Surabaya, one of the first Indonesian schools to join the program in 2008.

"Australia is committed to building stronger people-to-people links between Australian and Indonesian schools to increase knowledge and understanding of our two countries," said Ambassador Moriarty.

This new $3.6 million, five-year program will forge more than 80 new school partnerships and involve more than 3,500 Australian and Indonesian teachers and more than 100,000 students through information technology, social networking tools, school visits and on-line training sessions. Four schools from Surabaya, Malang and Kediri have joined the new program, bringing the total number of BRIDGE schools in East Java to fourteen.

"The BRIDGE program has worked with the private sector and communities to deliver education benefits to thousands of teachers and students in Australia and Indonesia. The first phase of BRIDGE built people-to-people links between more than 90,000 Australian and Indonesian students and thousands of teachers," said Ambassador Moriarty.

"Being a part of BRIDGE has been a great benefit to our school. It has meant our students have been more motivated to learn English and are able to use ICT more confidently. Our students are looking forward to visiting our partner school Kormilda College in Darwin later this year to share and participate in learning and cultural activities," said SMAN 15 BRIDGE teacher Ali Gufron.

The program is funded by the Australian Government in partnership with The Myer Foundation and delivered by the Asia Education Foundation and Australia-Indonesia Institute.

The new program will be run in 12 Indonesian provinces and 8 Australian states and territories.

Editor: Aditia Maruli

BMW to Double Domestic Capacity in Indonesia

Jakarta Globe, Faisal Maliki Baskoro, May 31, 2011

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Luxury carmaker BMW has announced that its local unit will invest Rp 100 billion ($11.7 million) over the next two years to double its production capacity.

Luxury carmaker BMW has announced that its local unit
will invest Rp 100 billion ($11.7 million) over the next two
years to double its production capacity. (JG Photo)

“BMW’s growth in Indonesia has been wonderful,” Graeme Grieve, global vice president of BMW, said in Jakarta at the local unit’s 10th anniversary on Tuesday. “Indonesia’s robust economic growth and promising future are the reasons behind our expansion.”

Grieve said the expansion, scheduled to start in September and finish in March, would double daily automobile output by modernizing the assembly line of partner Gaya Motor, a unit of Astra International.

“Production capacity will increase from four cars per day to eight cars per day,” he said. “In the long term, we expect to have a production capacity of 3,000 units per year.”

After officially launching the convertible 650i and 640i at the anniversary party, Grieve added that the production facility would also begin assembling BMW 5 Series midsize sedans in addition to the 3 Series. The Mini luxury economy car will also arrive in the market by the end of this year.

“With a worldwide sales volume of 230,000 units, the Mini is a leader in the compact premium car market segment,” he said. “We believe the Mini will be very successful here.”

BMW Indonesia’s car sales increased 38 percent last year to 1,500 units from a year earlier, more than double the gain in the broader auto sector. “Sales in Indonesia are relatively small compared to our worldwide sales of 1.5 million units, but we have identified Indonesia as a growing market,” Grieve said.

Ramesh Divyanathan, president director of BMW Indonesia, said the company had seen an average sales increase of 30 percent over the past three years. “BMW’s market share in the luxury car segment also increased to 27.9 percent in the first four months this year from 7.7 percent in the same period last year,” he added.

Car sales in Indonesia are projected to grow by as much as 15 percent to 850,000 units on the back of increasing purchasing power and auto financing.

E Kalimantan builds three industrial estates

Antara News, Mon, May 30 2011

Samarinda, East Kalimantan (ANTARA News)- To build a highly competitive regional economy to raise the welfare of the local population, the East Kalimantan provincial administration is developing three industrial groups prioritizing agricultural and industrial development, and exports.

"The sectors are oleo chemical agricultural based industries in East Kutai, oil, gas and condensate based industries in Bontang, and industrial areas in Kiangau, Balikpapan," East Kalimantan Governor Awang Faroek Ishak said here Monday.

He added that the development of oleo chemical agricultural industries in East Kutai regency was already in line with Presidential Instruction No 1 of 2010 on National Development Priorities, in other words it has the support of the President.

Under Presidential Instruction, East Kalimantan is preparing 5,035 hectares, for the building of an industrial estate and international port (KIPI) Maloy.

The area will be divided into two locations, the first 1,000 hectares in Teluk Golok for a CPO plant, and the second 4,035 hectares in Maloy for an industrial estate and container port.

The project in Bontang was aimed at supporting the development of petrochemicals like urea, ammonia, soda and methanol, while an ammonium nitrate plant is under construction, and the area has raised its urea production capacity by building urea plants.

The industrial estate in Karingau in Balikpapan, will have CPO receiving facilities on 426.9 hectares called PT Mekar Bumi Andalas, a wood pulp plant PT Kutai Chip Mill also already operating in 15 hectares, and a coal handling area PT Gunung Bayan Grup on 400 hectares.

The other projects include an area for a shipbuilding yard and rubber industry PT Dermaga Perkasa Pratama already operating, a Pertamina supply base for offshore drilling on 8.9 hectares.

"The three estates are expected to be developed into a Special Economic Zone, for which the industrial groups need to be fully supported by effective and reliable infrastructural means and facilities," the governor said.

Editor: Aditia Maruli

S Korean firm to invest in W Java`s water industry

Antara News, Fri, May 27 2011

Bandung, West Java  (ANTARA News) - South Korean tap-water company K-Water has expressed its readiness to engage in the water processing industry in West Java with an investment of about 50 trillion rupiah, a local official said.

"So, South Korean tap water company K-Water is ready to invest 50 trillion rupiah in the clean water processing industry in our region. It is already doing the same thing in Lampung and Bali," West Java Vice Governor Dede Yusuf said here on Friday.

According to Dede Yusuf, if K-Water`s intention to invest is realized, the people`s need for clean water in Bandung city, Bandung district, the town of Cimahi and Bandung Barat district can be fulfilled.

Dede Yusuf said further that currently Bandung Raya needs 7,000 liters of clean water per second, but the designed capacity of the local tap-water company is only about 3,340 liters per second of water. So, there was a shortage of about 3,500 liters per second.

In a bid to meet the public need for clean water, the provincial government should encourage a lot of investment in the production of unprocessed water, the processing steps, the water shipment or transportation and supply pipes.

Dede Yusuf said, the central government through the National Development Planning agency had only allocated some 250 billion rupiah (for West Java) to develop water processing facilities until 2015.

Considering the urgent need for clean water and the current population r growth , it was predicted that the local government would be unable to meet the people`s demand for clean water.

Therefore, the provincial administration needed to cooperate with investors to increase the region`s water processing capacity, Dede Yusuf said.

Editor: Jafar M Sidik

Govt to build three LNG receiving terminals

Antara News, Fri, May 27 2011

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Jakarta (ANTARA News) - The government plans to build three LNG (liquefied natural gas) storage terminals which are expected to start operating in 2012, a senior energy official said.

The Energy and Mineral Resources Ministry`s director general of oil and gas, Evita Legowo, said here on Friday the three LNG terminals would be built at three locations, namely Jakarta, Belawan (North Sumatra) and Arun in Aceh.

"The operation of the terminals will reduce domestic gas supply problems," she said.

She said the LNG terminal in Jakarta is expected to start operating in the first quarter of 2012 while that in Belawan in the second quarter and that in Aceh in the third quarter of that year.

She said the government also plans to build another LNG terminal in Semarang, Central Java, which is expected to operate in 2013.

The groundbreaking of the LNG terminal project in Jakarta was carried out on Friday morning by the director for general affairs of state-owned oil/gas company PT Pertamina, Waluyo.

The project is carried out by PT Nusantara Regas which is a joint venture of PT Pertamina and state-owned gas company PT PGN respectively holding 60 and 40 percent shares.

The capacity of the floating terminal is planned at three million tons or 400 million cubic feet per day (MMSCFD) with an initial capacity of 1.5 million tons.

The terminal will receive LNG from the refinery in Bontang, East Kalimantan, totaling 1.175 million tons a year based on a ten-year contract or totally reaching 11.75 million tons.

Pertamina`s spokesman M Harun said his side is still seeking supply from other sources to meet the terminal`s needs.

The gas will be used to meet the demands of Muara Karang and Tanjung Priok power plants in North Jakarta.

The Arun terminal meanwhile will be modification of its old function as a supplying terminal into a storage terminal.

"So it is only being reversed so that not much investment will be needed," he said.

He said LNG supply to Arun was expected to come from Bontang or Tangguh in Papua.

The Arun terminal built by Pertamina wiil supply gas to fertilizer companies, power plants, paper and other industries.

Evita said the Belawan terminal which would be built by PGN has received supply up to 140 MMSCFD.

The gas from the terminal with a capacity of 200 MMSCFD will be used by PLN (state power company) totaling 140 MMSCFD and industries 60 MMSCFD.

The LNG to be supplied to Belawan terminal totaling 140 MMSCFD will come from the shifting of exports to Sempra in the United States.

Based on a contract, exports of LNG from Tangguh reach 3.6 million tons a year with the possibility for 50 percent of them or 1.8 million tons a year to be shifted to other buyers with a compensation fee of around one US dollar per MMBTU to Sempra.

Besides Tangguh the PGN will also open an import option to meet the need of gas for the Belawan floating storage and regasification unit.

Editor: Jafar M Sidik

Aru district developing sea water processing technology

Antara News, Fri, May 27 2011

Ambon, Maluku (ANTARA News) - The Aru Islands District administration in Maluku province is currently developing a technology to process sea water into clean water.

The sea water processing technology is being developed in four villages which have been facing clean water problem so far in the district, head of Aru`s public works department, Ongky Nanulaita, said here on Friday.

He said the application of such a technology has been developed since 2010 by adopting it from Maldives city of Male to ensure the availability of clean and potable l water for the local people`s consumption.

Four villages where the technology is being developed are Kujabi in Aru Tengah Timur sub-district, Marlase in Aru Utara sub-district, Benjina in Aru Tengah sub-district, and Langgarapara in Aru Tengah Selatan sub-district.

"The application of the sea water processing technology in Aru Islands District began with a comparative study in Maldives whose area`s characteristic is the same as that in Aru," Ongky said.

He said it was a new breakthrough in Aru which is mostly made up of low-lying rocky areas.

"With that technology we guarantee the availability of clean healthful water for the local community," Ongky said, adding that the district has lack of water catchment area, except the district town of Dobo.

Thus to maintain the water catchment area in Dobo, Ongky said development of settlement area there should be limited.

Asked if such a technology could also be developed at other villages in the district, Ongky said a careful evaluation was needed to decide if it was possible.

"The application of the technology in the four villages is a pilot project that has to be evaluated to find out if it can be developed as well in other villages," Ongki said.

Editor: Jafar M Sidik

Govt Announces 17 Infrastructure Projects Worth Rp190 Trillion

Antara News, Fri, May 27 2011

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Jakarta (ANTARA News) - The Indonesian government announced 17 new infrastructure projects worth Rp190 trillion as part of its 2011-2025 Indonesia Economic Development Expansion and Acceleration Master Plan.

"The number of projects officially started is 17 and they are part of all infrastructure projects to be carried out until 2014 worth Rp400 trillion," coordinating minister for economic affairs Hatta Rajasa said in his speech at the launching of MP3EI here on Friday.

Hatta said the projects were launched in four locations namely Sei Mangke in the province of North Sumatra, Cilegon in Banten, Lombok Timur, East Nusa Tenggara and Timika, Papua, with funds coming from state-owned companies, national private companies, foreign direct investment and national budget.

"The groundbreaking is a start for MP3EI other projects. In the months and years to come it will continue to be done and therefore a solid team is needed to conduct monitoring so that no obstacles are to be found by prioritizing transparency and accountability.," he said.

Hatta said the launching of MP3EI would be the start of "business not as usual" to accelerate economic development across the country sustainably and equally through synergy building involving all components in the central and regional governments.

"The master plan is expected to be able to eradicate various obstacles of development such as `bottleneck` that disrupt business climate and certainty," he said.

In Sei Mangke there will be three projects which are to be developed namely an oil palm area development project by PT Perkebunan Negara III with an estimated investment of Rp2.5 trillion.

The other ones are the Peusangan 1 and 2 (2x44MW) hydro-powered plants (PLTA) in the Aceh province worth Rp1.53 trillion and the Broadband Access and Through Broadband Access Plan by PT Telkom.

Five main projects in Cilegon in the West Java province of Banten meanwhile are the modern steel plant development project by PT Krakatau Steel and POSCO of South Korea worth Rp60 trillion and energy gasification project worth Rp59 trillion.

The third project is the extension of Samping, engine, casting and assembling plant for motor vehicles by PT Astra Daihatsu worth Rp2.4 trillion.

The fourth project meanwhile is the Tanjung Priok toll road worth Rp1.6 trillion by JBIC, the central government, the Jakarta administration, PT Angkasa Pura and PT Jasa Marga and the fifth is the aluminium grad chemical plant worth an investment of Rp4.3 trillion in Sanggau, West Kalimantan.

Four projects meanwhile will be carried out in East Lombok namely the Pandan Duri dam with an estimated investment of Rp728 billion, the Titab dike worth Rp481 billion, the Ngurah Rai airport expansion worth Rp1.94 trillion and the development of new Garuda Airlines routes o 13 cities in the Indonesian eastern regions.

Four projects to be carried out in Timika, Papua, meanwhile include the 135-kilometer long Timika-Enarotali highway with an investment of Rp600 billion and the 600-kilometer long Merauke-Waropko worth Rp1.2 trillion.

The others include a mining project and a cobalt and nickel processing plant worth Rp50 trillion and 150 KWp and 200 KWp solar power projects (PLTS).

Editor: Ella Syafputri

Germany assists RI in forest, climate change program

Antara News, Thu, May 26 2011

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Jakarta (ANTARA News) - Germany has committed to assisting the Indonesian government in the Forest and Climate Change program (ForClime).

The ForClime program will be carried through two cooperation moduls, namely Technical Cooperation (TC) via GIZ with funds worth 6.75 million Euro and Financial Cooperation (FC) through KfW worth 20 million Euro, the forestry ministry said here Thursday in a press statement.

The program has a target to decrease the CO2 emission rate from deforestation and forest degradation by 300 to 400 thousand tons during a seven-year period.

The assistance was provided as the result of the bilateral negotiation held in October 2007.

The ForClime program launching was marked by "ForClime FC-Module National Kick-off Workshop".

The program`s demonstration activities on REDD+ (Reducing Emission from Deforestation and Forest Degradation) is implemented in three districts on Kalimantan Island, namely Kapuas Hulu, Malinau and Berau.

The objective of the program is to cut the greenhouse gas emission from the forestry sector and to improve the living condition of the rural people.

The gas emission rate will be reduced by addressing the main drivers of deforestation and forest degradation occurring the conserved forests, protected forests and production forests.

President Susilo Bambang Yudhoyono recently signed a Presidential Instruction on deforestation moratorium to help curb the climate change impacts and preserve the remaining tropical forests and biodiversity in it.

The presidential decree on a moratorium on logging concessions for two years was only applicable to primary forests and peat lands in conserved forests, protected forests, production forests and the Other Use Land (APL).

Indonesia hosts the world`s third largest forest area after Brazil and Congo (formerly Zaire). Based on forestry ministry 2010 data, Indonesia has around 130 million hectares of forests, including 64.2 million hectares of primary forests, and 24.5 million hectares of peat lands.

Editor: Heru