Private companies to build 3 hydro power plants

Rangga D. Fadillah, The Jakarta Post, Jakarta | Tue, 03/20/2012

State power company PT PLN has decided that three hydro power plants in Batang Toru in North Sumatera, Kerinci, in Jambi and Karama in West Sulawesi will be built under the public-private partnership.

Nur Pamuji: PLN president director.
(Tribunnews.com) 

“Considering that the projects require huge investments, the projects will be given to private developers. The financing may come from foreign financial institutions thus we suggest that the government provide guarantee through PT Penjaminan Infrastruktur Indonesia [PII],” said PLN president director Nur Pamudji.

The Karama power plant will be built by PT Sulbar Group and China Gezhoumba Group. The plant will have a total capacity of 450 megawatts (MW) and requires a total investment of US$$1.2 billion.

The contract for the Kerinci plant has been awarded to PT Kerinci Hydro Energy. The investment for the 450 MW plant is forecast to hit $510 million.

In Batang Boru, Operational Cooperation (KSO) Dharma Hydro will build the 500 MW power plant. The total investment is expected to reach $1.2 billion.

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Indonesia Bids to Host Future Clean Technology Center

Jakarta Globe, March 20, 2012

The surge in wind energy could save 1.6 billion tonnes of carbon
dioxide emissions each year 

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Paris. Plans for a global center to help transfer clean technology to poorer countries have drawn nine bids, including from Indonesia’s National Council on Climate Change, the UN climate forum said on Monday. 

Parties to the UN Framework Convention on Climate Change (UNFCCC) backed the proposal at a meeting in Durban, South Africa last December. 

Bidders to host the center include a 13-member consortium led by the Kenya-based UN Environment Programme (UNEP) and whose ranks include energy research institutes in India, the United States and Netherlands, the UNFCCC said in a press release. 

Others are the Global Environmental Facility (GEF), a Washington-based international funder of environmental programmes; Costa Rica’s Institute of Technology; and Indonesia’s National Council on Climate Change. 

There is also a bid by the Research Institute of Petrolum Industry (RIPI) in Tehran, which carries out research for Iran’s oil and gas sector. 

Fossil fuels are the biggest contributor to global warming, which scientists say is inflicting worrying changes to the climate system. 

The nine applicants will be whittled down to a shortlist of five next month. 

In May, a UNFCCC expert panel will propose the winner. Final approval rests with the UNFCCC’s annual ministerial-level meeting, taking place in Qatar from November 26 - December 7. 

Agence France-Presse

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Govt to build solar cell company in West Java

Antara News, Mon, March 19 2012 

Jakarta (ANTARA News) - The Ministry of State Owned Enterprises plans to build a solar cell company in Karawang, West Java, in response to the growing suggestions that Indonesia should use more renewable energy and reduce its dependency on fossil fuel, a minister said.

Dahlan Iskan. (ANTARA
/Rosa Panggabean) 

"The company will produce a capacity of 60 megawatts per year, and the government has planned to invest Rp500 billion. The company is expected to start operations by November 2013," Minister of State Owned Enterprises Dahlan Iskan said here on Monday.

Earlier, Minister of Research and Technology Gusti Muhammad Hatta had said his ministry was continuously studying the pattern of geothermal energy utilization in Indonesia as part of the efforts to ready existing renewable energy sources for tapping by 2025.

"My ministry is continuously studying the utilization patterns since it has been planned that in 2025 new renewable energy should be ready in large amounts," he said.

Gusti added that the National Energy Board (DEN) had predicted that the availability of petroleum would deplete by 2020 so the preparation of renewable energy on a large scale should be started early.

Oil may still be available off the coast but it is deep inside the ocean and will require the use of advance technology and high costs to obtain.

Therefore, the renewable energy derived from various sources such as ocean currents, wind and plants (bio-ethanol) must be reviewed for use, the minister explained.

"In fact, in the near future we will be working on geothermal energy because we (Indonesia, Red) has 44 percent of the world`s geothermal potential," he noted.

The DEN version guided by the blue print of National Energy Management 2004 mentions that Indonesia`s energy source of fossil fuel, which is oil, will be exhausted within 18 years, gas in 61 years, and coal in 147 years.

Currently Indonesia needs as much as 1.5 percent of the world`s oil to reach 10.5 billion tons.

Meanwhile, Indonesia exports as much as 1.5 percent, which means that Indonesia`s ability to produce oil takes care of 3 percent of the total oil consumption in the world.

Earlier, Minister of Energy and Mineral Resources Jero Wacik said that renewable energy in Indonesia has not been fully utilized, especially the abundant solar energy.

"Solar energy is currently used only for drying coffee and during the tourist season, even though it can be utilized optimally," he said.

Jero noted that energy sources of oil will be exhausted but according to the data from the National Energy Board, renewable energy is currently only 5 percent of the total energy used.

So the government is working towards making sure that renewable energy reaches a minimum of 25 percent of the total energy used in 2025.

According to the Ministry of Energy and Mineral Resources, there are currently around 28 sources of geothermal energy with a potential of about 7,000 megawatts that have been licensed for exploration by the Forestry Ministry.

Editor: Priyambodo RH

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A New Home for Rp 70m? It Might Be Within Reach for Indonesia's Poor

Jakarta Globe, Anita Rachman, March 19, 2012

Model units of the prefab homes that the Ministry of Public Housing
 envisions as an affordable plan to homeownership. Accounting for all
the costs  associated with them, setting up the houses would cost at least
Rp 70 million, with mortgage plans available. (JG Photo/ Afriadi Hikmal)  

       

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Shortly after he was appointed public housing minister in October, Djan Faridz was given a daunting challenge: build Rp 25 million ($2,750) houses for low-ranking civil servants on land provided by the local government.

“I was shocked,” he told the Jakarta Globe in a recent interview. “How can I build a house with only Rp 25 million? And I wanted it to have at least a 36-square-meter [floor area].”

But he soon found an answer in Palembang, South Sumatra. In a trip to the province, he met representatives of Grand Wijaya Persada, a construction company that has been building houses for even less than that amount.

A model cheap house

Inside the ministry compound in South Jakarta, a fully furnished, two-bedroom 45-square-meter model unit now stands.

The basic structure of the prefab house costs Rp 35 million, sans flooring, ceiling and paint, which runs an additional Rp 5 million.

Beside it, a model unit of the Rp 25 million, 36-square-meter version is being built. Visible for now is the steel mold where concrete would be poured into to create the basic structure. But it won’t remain like that for long, because the house can be finished in as little as seven days.

Anyone interested in looking at the model units is welcome at the ministry. Both units have a defined two-bedroom floor plan according to the prefab mold patented by Umar Sumadi, the production head at Grand Wijaya. A single mold can be used to construct as many as 200 houses.

The ministry has already signed a memorandum of understanding with several other ministries committing to help provide civil servants with these cheap houses.

Djan said the project would be done in 60 districts and municipalities across the country, starting off with East Nusa Tenggara (NTT) and North Maluku.

The ministry is aiming to build around 7,900 cheap houses in NTT and 2,000 in North Maluku this year, among others.

Rp 70 million dream

The minister, however, is keen on finding a way to make the same cheap houses available to all Indonesians.

“Housing is a serious matter, after food and clothing. But many cannot afford it because it’s remarkably expensive,” Djan said.

According to his ministry’s data, as many as 4.8 million Indonesians today live in dilapidated houses, and more than 11 million people do not have their own homes. And with real estate prices expected to keep rising, chances are these figures will only climb higher.

That’s why the minister’s goal is to give Indonesians a chance to own a home for an affordable Rp 70 million.

Here’s how he sees it: in certain parts of Jakarta’s satellite cities, say Depok, people can still get a 60-square-meter plot of land for less than Rp 20 million.

If the Rp 25 million, 36-square-meter prefab model is built on that land, then for as little as Rp 70 million — including flooring, ceiling, paint, electricity and water installations and other fixtures — an Indonesian family can have a home it can call its own.

“Of course you can also get it elsewhere, anywhere you want,” the minister said. “So if you are outside Java, you can get a house for even less than Rp 70 million.”

Bringing it to the people

The idea is that the ministry will work with developers who can build subdivisions full of these prefab units.

For a housing project to be economically feasible, at least 200 units must be constructed to maximize the use of the mold. Grand Wijaya would earn a 5 percent licensing fee for each socialized housing project.

Indonesians can then buy the houses from these developers at prices determined together with the ministry. Of course, certain conditions, such as that the potential buyer does not own a house yet, have to be met.

The ministry will then help get bank housing loans. For a Rp 70 million house, Djan said the current computation would see a buyer pay Rp 575,000 a month for 15 years.

But it might still be a while before these become a reality, as the ministry hasn’t begun discussions with developers yet.

Real Estate Indonesia chair Setyo Maharso said delivering low-cost homes was not a problem, and the ministry’s plan could be executed in the same way as previous programs.

Doing it in Jakarta, though, would not be easy, he said.

“It’s even quite difficult to build it in Depok. Bogor or Bekasi are still possible, but not here in Jakarta,” he said.

Although he completely supports the policy, he said prefab units were not always ideal.

“Low-income families usually buy a small house, but when they have money, they will build more rooms. But prefab houses are not really flexible for modifications,” he said.

Priyo Suprobo, a structural engineer with the Sepuluh November Institute of Technology (ITS), agreed. He said modifying a prefab structure would be difficult, and that the lack of flexibility was a major weakness.

Another is that people could not embed electrical wiring into the walls.

But Priyo still believes this kind of model can help low-income families solve their housing problems, “especially if the ministry provides a subsidy,” he said.

Will people buy?

Ridwan, a security guard in an office building in Kuningan, currently rents a house in Kedoya in Kebun Jeruk, West Jakarta, with his wife and child for Rp 350,000.

Hearing about the Rp 70 million house made him happy and hopeful. “I think it’s affordable, and 36 square meters looks decent enough,” he said.

On the other hand, Afrizal, a single 24-year-old noddle seller in Lenteng Agung, felt the Rp 575,000 amortization per month was still out of reach.

“It’s already hard to make ends meet,” he said.

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Govt Pairs With F Cubed for Safe Drinking Water Project

Jakarta Globe, March 17, 2012

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The Indonesian government has announced it will partner with sustainable water technology firm F Cubed to set up solar-powered desalination kits across the country.

Indroyono Soesilo, secretary at the office of the coordinating minister for people’s welfare, said on Thursday that there was an urgent need to provide a sustainable and reliable source of clean water in villages and isolated communities nationwide.

The decision to partner with F Cubed, he said, was crucial in this respect. “We need to immediately find a solution to providing clean water in areas that experience chronic water shortages,” he said.

He said the Australian company would work with the Agency for the Assessment and Application of Technology (BPPT) and the Indonesian Institute of Sciences (LIPI) to set up its Carocell solar-powered desalination kits throughout the country.

Peter Johnstone, the F Cubed founder and chief executive, said the desalination technology that his company had pioneered was proven to produce high-quality drinking water.

“Our technology can turn water from any source, be it seawater, groundwater, polluted or even contaminated water, into clean, potable water,” he said. “And because it runs on solar power, the water can be produced at a very low cost.”

Among the other benefits of the Carocell system that the company touts are that it “emits no greenhouse gas emissions, uses no chemicals, no costly membranes, no filters, no electronics and no ongoing power source is required other than solar radiation.”

The system is based on a single or a series of low-cost solar panels that can be mounted on the roof of a building or on the ground. The water goes into a feeder pipe running along the top of the panel, then is allowed to run down in evenly dispersed streams to the bottom of the panel.

As it flows down, it gets heated by the solar panel and vaporizes, condensing on the inside of the panel enclosure and eventually dripping out through a clean water outlet pipe.

F Cubed claims the distillation process, high temperatures and exposure to ultraviolet light kill any bacteria and germs in the water. The company also says its panels have double the solar efficiency of similar water purification systems.

The smaller of its two types of solar panels, with a surface area of three square meters, can produce up to 20 liters of clean water a day, while the larger panel, at six square meters, can produce double that amount.

Each panel converts 30 to 40 percent of the feed water into clean water.

The whole cycle can be carried out six times, after which the remaining fluid, with a high salt concentration, is crystallized to produce salt, as part of the F Cubed’s “zero liquid discharge” technology.

Johnstone said the Carocell panels were already in use in 26 countries, including Malaysia, India and Bangladesh.

“We are currently assessing building a factory in Indonesia with investment of around $10 million,” he said. “We want to participate in efforts to improve people’s welfare by providing clean water and creating jobs.”

F Cubed says that because the system runs entirely on solar power, there are no mechanical parts and no electronics, making it ideal for installation in remote, rural areas, as well as for use in disaster relief situations.

Antara 

Sharp ready to start $300m solar power project in Bali

The Jakarta Post, Sat, 03/10/2012

Japanese multinational electronics giant Sharp Corporation will soon conduct a feasibility study on a US$300 million solar energy power plant in Bali with 100 megawatt (MW) capacity, an Indonesian government official says.

Energy and Mineral Resources Minister Jero Wacik previously said the new plant will generate cheaper electricity for the people because the price could almost half the current price using fuel energy, or at about 23 US cents per kilowatt hour (kWh). Following a depreciation period, the price could further dip to 3 to 5 cents per kWh.

Kardaya Warnika, the ministry’s director general of renewable energy and energy conservation, said Friday the memorandum of understanding (MoU) had been signed with Sharp on March 2 and the feasibility study had begin the following day in Bali.

“Bali was chosen because the project targets tourism areas so that they could be supplied by electricity and renewable energy,” Kardaya said as quoted from his office’s website, adding that the feasibility study aims at finding out the intensity of heat, duration of sunlight, and market potential in the “Island of Gods”.

While the study is ongoing, Sharp will develop a smaller capacity solar power plant with capacity of 1 to 2 MW, according to him. If successful, Kardaya added, the project could be expanded to other areas including Jakarta.

Indonesia currently relies on oil, gas and coal as sources for energy, while the use of renewable energy is low. Neighboring countries have diversified to biomass geothermal and extensive use of hydro-electric technology.

The government has pushed efforts to find new and renewable energy sources as prices of oil and coal are on the rise, to provide electricity for the country where infrastructure bottlenecks remain a major issue.

State electric utility PT Perusahaan Listrik Negara (PLN), which acts as the offtaker of Sharp’s project, has embarked on a program to develop solar power plants in 100 islands to provide access to electricity in remote areas. Tropical Indonesia has more than 17,000 islands, many of which have tenuous electricity supply, especially in remote areas.

“But [Sharp’s] project is different with that of PLN. PLN aims at reaching out regions that have not had access to electricity, but Sharp’s project does not target remote areas,” Kardaya said.

The selling price to PLN has not yet been set, and the government is yet to decide on the pricing mechanism—flat rate or gradually decreasing prices, he added.

Every 1 MW solar power plant capacity requires investment of between $2.5 and $3 million and land bank of two hectares, according to Kardaya, meaning that Sharp’s 100 MW project in Bali will need up to $300 million investment and 200 hectares land.

“If they [investors/Sharp] have built [a plant] in Indonesia, the components must come from their Indonesia-based factory,” he added.

— JP/Esther Samboh

After Success of ‘A Separation,’ Iran to Host Cultural Festival

Jakarta Globe, Ade Mardiyati, March 02, 2012

The Embassy of the Islamic Republic of Iran in Indonesia is set to host
 Cultural Week from March 7 to 13 in Jakarta. It will feature film screenings,
 workshops on Iranian arts, photography exhibitions and traditional music
performances. (Agency Photo)

               

The Embassy of the Islamic Republic of Iran in Indonesia is set to host Cultural Week from March 7 to 13 in Jakarta. It will feature film screenings, workshops on Iranian arts, photography exhibitions and traditional music performances.

As part of the festivities, the embassy will also host a film festival at Pusat Perfilman Usmar Ismail in Kuningan, South Jakarta, from March 9 to 12. There will be discussions with Iranian directors and actors.

“Through this Cultural Week event, we are trying to introduce the culture and people of the Republic of Iran to the Indonesian people,” said Mahmoud Farazandeh, the Iranian ambassador, during a recent news conference at his residence in Menteng, Central Jakarta.

“There are plenty of Indonesian people I met who have expressed interest in Iranian films, so we decided to run this event.”

Among the films to be screened are “A Span of Heaven,” “The Third Day,” “The Sun Shines on All Equally” and “Eighth Sky.”

Iranian cinema has recently been thrust onto the international stage with the success of “A Separation,” which won Best Foreign Language Film at the Academy Awards, among some 45 film award wins for the drama.

While most modern movies portray violence, romance and unique relationships, the message of Iranian films, according to Farazandeh, is to show the world the problems that exist in the country. Some of these problems are unique to Iran, while some problems, such as “A Separation’s” portrayal of a couple struggling to care for their children and an ailing parent, are universal to all cultures.

“We don’t present merely entertainment. There is always a message we want to deliver,” he said. “It is how to say something without using violence or sexual scenes.”

The film industry, Farazandeh said, was one way to voice revolution in Iran.

“We don’t believe that violence can help reach revolution. Instead, it is the values of humanity that can,” he said. “Our revolution is a cultural one.” 

Cultural Week of the Islamic Republic of Iran

March 7-13, from 9 a.m. to 5 p.m.

Museum Nasional, Jl. Medan Merdeka Barat No. 12, Central Jakarta

Freeport donates Rp 58b to human rights foundation

Nethy Dharma Somba, The Jakarta Post, Jayapura, Fri, 03/02/2012

American mining giant PT Freeport Indonesia (PT FI) has donated Rp 58 billion (US$6.38 million) to the Timika-based Human Rights and Anti-Violence Foundation (Yahamak) to fund its programs.

Yosepha Alomang
(Kompas.com)

 “The donation will be disbursed in two stages: Rp 27 billion in 2012 and Rp 31 billion in 2013, as stipulated in the Memorandum of Understanding (MoU),” PT FI vice president for social affairs, Demianus Dimara, said after the MoU signing in Jayapura, Papua, on Friday.

Yahamak’s founder, Yosepha Alomang, said the funds would be allocated for education, health and economic programs, as well as to enhance the capacity of the foundation’s management.

 Yahamak was established in 1999 by Yosepha, a human rights defender who received the Yap Thian Hien award in the same year, and the Goldman Prize in 2001.

 Yosepha said that Yahamak was born out of the struggles of local women living in the company’s working area.

 Responding to the numerous shooting incidents, which have recently occurred in the province, Yahamak vice director Arnold Romsumbre demanded the President take the matter seriously and to speedily arrest the perpetrators.

 “When someone is stabbed and killed in an attack with an arrow in Timika, we can easily identify the perpetrator’s clan from the arrow’s characteristics. But we can hardly identify it from a bullet,” Arnold said. (swd)

Dutch investor to support production of N219 planes

Antara News, Fri, February 17 2012

Bandung, W Java (ANTARA News) - Dutch investor RT ComInvestment Co.Ltd. supports the funding for the production of N219 aircraft by PT Dirgantara Indonesia, ordered by PT Nusantara Buana Air.

"The funding agreement was signed in Singapore between PT NBA and RT ComInvestment Co. Ltd. on Wednesday," Sonny Saleh Ibrahim, the president director`s assistant for quality management system and communications development of PT Dirgantara Indonesia (PTDI), said here on Friday.

He said on the same day PTDI signed a letter of intent for the order of 20 N219 aircraft and an option for additional 10 aircraft.

The signing was done on the sidelines of the Airshow in Singapore witnessed by three ministers, namely Industry Minister MS Hidayat, State Enterprises Minister Dahlan Iskan and Trade Minister Gita Wirjawan.

PTDI in the signing was represented by its president director Budi Santoso, the director of technology and development and administrative affairs Dita Donny Jafri, the director of aerostructure Andi Alisyahbana, the director of aircraft services Budi Wuraskito and the director of aircraft integration and finance, Budiman Saleh.

"The trust given to PTDI to manufacture the N219 aircraft shows that we are really important part of air development in the country," Sonny Ibrahim, the company`s former head of rocket program, said.

The value of the contract was US$120 million. The two companies had also agreed to discuss and negotiate technical things and business aspects.

N219 is a feeder plane powered by two turboprop engines capable of carrying 19 passengers and a payload of 3,000 kilograms with a cruising speed of 213 knots.

The aircraft is now still under the process of development with a certification target in the first quarter of 2014.

The plane is designed to be able to take off and land in a short runway of 600 meter long.

On the day of the signing of the N219 contract PTDI also signed a contract with Military Airbus for the manufacturing of nine military transport aircraft C295. PTDI will contribute with a number of important components including fuselage and tail.

The C295 aircraft which is to be used by the Air Force will be delivered between 2012-2014. The aircraft will later be named CN-295.

Editor: Heru

Indonesian Military Signs $325 Million Airbus Deal

Jakarta Globe, February 15, 2012

Singapore Air Force’s F-15 and F-16 fly by each other during
the aerial  display on the opening day of the Singapore Airshow
on Tuesday. (AP Photo/Bryan van der Beek)

               

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Singapore. Indonesia on Wednesday signed a $325 million contract with Airbus Military for nine C-295 transport planes to be used for defense, logistical and humanitarian purposes.

The first plane will be sent to the Southeast Asian nation this year, with the remainder scheduled for delivery by 2014.

“This is a proud moment for our country as well as for the Indonesian aerospace industry,” said Indonesian Defense Minister Purnomo Yusgiantoro, at the signing of the deal at the Singapore Airshow.

“The C-295 provides the ideal capacity to respond to Indonesia’s current and future military and humanitarian transport needs,” he added.

The model is a medium-sized transport plane which can be configured for different operational purposes such as ground surveillance, anti-submarine warfare and search and rescue operations.

The planes will be used for “a variety of roles including military, logistical, humanitarian and medical evacuation missions,” according to a statement.

Yusgiantoro did not rule out future purchases of the C-295, saying other branches of the armed forces were interested in the plane.

“The police for instance... are also interested in this. And you know that (the) 295 version that we ordered now is for the Air Force, and probably the army is also interested,” he said.

The deal includes a collaboration between state-owned aviation firm PT Dirgantara Indonesia (PTDI) and Airbus Military, with Indonesia manufacturing parts for the C-295.

The partnership will allow the Indonesian firm to “grow its aerospace business as a tier-one supplier,” said PTDI Chief Executive Budi Santoso.

“This will position PTDI on the global aerospace scene and allow us to enhance our skills and workforce,” he added.

Indonesia’s defense budget totalled $6.39 billion in 2011, ranking second in Southeast Asia behind Singapore.

Agence France-Presse

Boeing Finalizes $22.4b Deal With Lion Air for 230 Planes

Jakarta Globe, Royston Sim - Straits Times Indonesia, February 14, 2012

Boeing announced a $22.4 billion deal with Lion Air on Tuesday afternoon
for 230 airplane orders — the largest deal in its history in terms of dollar value
and total number of airplanes. (Antara Photo/Lucky)  

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Boeing announced a $22.4 billion deal with Lion Air on Tuesday afternoon for 230 airplane orders — the largest deal in its history in terms of dollar value and total number of airplanes.

This deal alone has exceeded the $10 billion of deals signed at the previous Airshow in 2010.

Jakarta-based Lion Air and Boeing finalized an order for 201 737 Maxs and 29 737-900 ERs.

Lion Air will also acquire rights to purchase another 150 airplanes.

The Singapore Airshow runs from Tuesday till Sunday at Changi Exhibition Centre

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Major Gas Reserve Found Off Kalimantan

Jakarta Globe, Ririn Radiawati Kusuma, February 13, 2012

Chevron Indonesia has discovered a pocket of natural gas off the eastern
coast of Kalimantan that could boost the country’s production by more than
10 percent. (AFP Photo)

               

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Chevron Indonesia, an Indonesian unit of US energy giant Chevron, has discovered a pocket of natural gas off the eastern coast of Kalimantan that could boost the country’s production by more than 10 percent.

The company located a gas reserve of 2.3 trillion cubic feet in the Makassar Strait, and total cost to develop the block is estimated at up to $7 billion, the nation’s upstream oil and gas regulator BPMigas said on Monday.

The company is expected to produce 1,000 million standard cubic feet per day (mmscfd) of gas from the block, BPMigas said. Output of 1,000 mmscfd of gas is equal to about 172,000 barrels of oil equivalent per day (boepd). Indonesia’s natural gas production last year was 1.5 million boepd, according to BPMigas.

“We have agreed on the plan of development on those blocks, so we already know the reserve for the first phase of the project,” Gde Pradnyana, a spokesman for BPMigas, said on Monday. The total cost to develop the project is estimated at $4 billion to $7 billion, BPMigas said.

Chevron owns four gas blocks in the Makassar Strait, located between Kalimantan and Sulawesi islands, and continues to explore within those blocks for more gas reserves. It began exploration activities on the blocks in 2008.

Of the four blocks, two of them — the Ganal and Rapak blocks — are jointly owned with ENI, an Italian oil and gas company, in which it owns a 20 percent stake.

Chevron is Indonesia’s largest oil producer, with total daily production averaging 477,000 barrels of liquids and total average daily production of natural gas at 611 mmscfd in 2010, according to the company’s Web site.

Chevron operates in partnership with Indonesia’s government under so-called production-sharing contracts.

Indonesia has been struggling to boost oil production after the country’s crude oil output fell below 1 million bpd in 2007.

Oil companies operating in Indonesia produced about 904,000 bpd last year.

“That’s why we want to change the paradigm from oil to gas,” Gde said.

Russian Railways to Build $2.4b Coal Line in Indonesia

Jakarta Globe, February 07, 2012

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State firm Russian Railways plans a $2.4 billion train line on Indonesia’s Borneo island that will initially be used to transport coal, an Indonesian government official said on Tuesday.

The line in East Kalimantan province is expected to start operating by the first quarter of 2017, and will help improve the decrepit infrastructure on the island that has hampered exports of key commodities and put a strain on economic growth.

“The first stage of the railway will be meant for coal, but hopefully we can also use it for crude palm oil, plantation harvests, rubber and people,” Awang Faroek, the governor of East Kalimantan, told a news conference in Jakarta.

The first phase of development, which will cost $1.7 billion, will be for 185 kilometers of railway, with another 60 kilometers added during a second phase.

The railway’s capacity is expected to be 20 million metric tons of coal per year for the first phase, added Andrey Shigaev, a director at the project, which will be funded by both private investors and Russia’s state development bank Vnesheconombank.

Southeast Asia’s largest economy is the world’s top producer of palm oil, the biggest exporter of refined tin and thermal coal, a major nickel miner and home to the world’s second-largest copper mine and largest gold mine. The country’s coal and palm oil assets are mostly located in Kalimantan.

The railway will connect an area close to the Balikpapan port through the Kutai Barat regency to the border to Central Kalimantan province, where the railway is expected to be expanded in the second phase of the project.

“The Russians have expertise in heavy haul rail lines,” said an Australia-based analyst. “Russian Railways are a pretty big operator of rail infrastructure, so I would guess it’s the rail company looking to expand.

“Russia itself doesn’t need to buy coal from anyone, they have a lot of coal of their own so from a strategic point of view, they don’t need to do it.”

Indonesia’s thermal coal output is seen at 350 million metric tons this year, according to industry estimates, fueled in large part by power demand in China and India.

The UAE’s MEC Holdings is currently building a railway to export coal from its Kalimantan mine project, and leading Indian conglomerate Reliance ADA Group is set to invest between $5 billion and $10 billion in mining infrastructure.

“Traditionally, coal in Indonesia has been transported by pretty fragmented means — trucks, small private short railways, barges,” the analyst added.

“It does signal that the producers there and the government is getting a bit more serious in terms of their commitment to scale infrastructure.”

Infrastructure development in Indonesia has been slowed in the last decade because of uncertainties in acquiring land.

However, in December the parliament passed a land bill designed to speed up land acquisition for state projects deemed in the public interest as a way to address the problem.

Economic growth in Indonesia was 6.5 percent last year — it’s highest level since 1996 — while the country attracted record foreign direct investment of close to $20 billion.

Reuters

Australia supports RI focus on achieving MDGs

Antara News, Sat, February 4 2012 

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Jakarta (ANTARA News) - With three years until the world needs to meet the Millennium Development Goals (MDGs), the Indonesian Government, with Australia`s support, is focused on progress throughout the archipelago.

Australian Embassy media release in its official website early this week said the Australian Government, through its aid program (AusAID), was strongly supporting Indonesia in achieving the MDGs by being Indonesia`s largest development partner.

As part of this commitment, AusAID is sponsoring the Indonesian Government`s MDG Awards, and participating in an exhibition showcasing MDG achievements at the Balai Kartini Convention Center, on January 31 and February 1, 2012.

The MDG Awards will recognize individuals and organizations making a substantial contribution towards achieving the MDGs. These awards will also inspire further action to tackle poverty and other development challenges in Indonesia.

"Indonesia is making substantial progress helping poor people improve their incomes and access food, ensuring children go to school, supporting women and making childbirth safer, but there`s still a lot more work that needs to be done," said the head of AusAID in Indonesia, Jacqui De Lacy.

"By recognizing those making a difference, we will encourage more Indonesians to accelerate efforts on achieving the MDGs including improving maternal health, combating HIV/AIDS and ensuring environmental sustainability," added De Lacy.

The exhibition, which is open to the public, will promote the work of Indonesian Government departments, international development partners, members from the private sector and local and international NGOs.

The MDG Awards are hosted by the Office of the Special Envoy of the President for the MDGs and in cooperation with Metro TV.

Australia is allocating an estimated A$558.1 million in 2011-12 for its development program in Indonesia. Australian aid programs have already created over 330,000 new school places for students, trained over 5,000 health workers and connected nearly 350,000 people to water and sanitation networks.

Editor: Priyambodo RH

Army high officials depart to Netherlands to view Leopard tanks

Dicky Christanto, The Jakarta Post, Jakarta | Mon, 01/30/2012

Army spokesman Brig. Gen. Wiryantoro said a team of Army generals led by deputy Army chief of staff Lt. Gen. Budiman had departed to the Netherlands to take a closer look at Leopard tanks that the Army was interested in purchasing.

“The team is tasked with making an assessment over many aspects, one of them being to take closer look at the tanks’ real condition,” Wiryantoro told The Jakarta Post on Monday.

He said the results of the visit will be given to the public once the team returned.

The Army has allocated US$280 million to purchase 100 used Leopard tanks from the Netherlands this year. However, the idea has drawn controversy, with some people criticizing the tanks as being too big and thus not appropriate for the country’s geography.