City invites foreign investors

Tifa Asrianti, The Jakarta Post, Jakarta  

The Jakarta administration is offering several infrastructure projects to international investors, especially in transportation and waste management. 

The city's bureau of capital investment and regional monetary management (BPM PKUD) held a one-day Jakarta Business Forum on Thursday. The forum attracted 125 business people from 14 countries, including Australia, the United States, Japan, Malaysia, Singapore and South Korea. 

"Our goal is to improve efficiency and performance for our expenditures, diversify and optimize city spending as well as implement regional regulations and enforce them," bureau head Hasan Basri Saleh said. 

The projects offered include six inner-city toll roads, five busway corridors, a mass-transit station and a subway. 

The bureau has also opened up investment opportunities in waste processing, with plans to set up seven landfills. Jakarta produces about 6,000 tons of garbage per day, but operates only one dump, the one in Bantar Gebang, Bekasi. 

Another project on offer, Marunda port, has several investors already expressing interest. 

David Hughes from the Australia-based property and infrastructure company Crown Project said his company has plans to invest Rp 3 trillion (US$300 million) in the port project. 

"We've had an initial briefing about the project. We're now waiting for the council to approve our proposal," he said. 

Hary Soesetyo, the bureau's division head for planning and promotion, said the seaport had also attracted interest from a Rotterdam-based company. 

Deputy Governor Prijanto said investors should not be reluctant to invest in Jakarta because the administration had cut much red tape. 

He cited specific timeframes: Anyone who want to invest in the Marunda Bonded Zone only needed three days to process the paperwork; those investing in the trade and service sector required 10 days; smaller trade and industry projects, below 5,000 square meters, would be processed in 20 days; and larger ones, above 5,000 square meters, 38 days. Paperwork used to take 196 days. 

The investment bureau also provides information on how to invest in Jakarta through www.jakarta-investment-center.com. 

Brian O'Gallagher, Director of Trade and Development for Australia's Northern Territory, said he was impressed with the city's efforts to provide information. 

"We can now see investment requirements through websites. I'm sure that will boost the investment rate," he said. 

Australian businessman Nisin Sunito said the investment process was far easier this time around because requirements about business and investment had been openly conveyed. 

"We can prepare the required documents. The process has been made faster and simpler," he said. 

Jakarta has seen an increase in investments year-to-year. In 2007, total investments reached Rp 66 trillion, two-thirds from foreign direct investment and one-third from local sources. 

As of May this year, Jakarta has lined up investments totaling Rp 63.53 trillion, already two-thirds of the 2008 investment target of Rp 96 trillion. Foreign direct investment represents most of the inputs, with only Rp 531.5 billion from local investment.

Indonesia’s New Focus on Marine and MICE Tourism

Travel News Gazette, Ozgur Tore, 

Indonesia’s tourism industry remains confident, according to I.Gede Pitana, Director of International Promotion at the Indonesia’s Ministry of Culture and Tourism. 

He told a ITB Asia press conference 23 October in Singapore: “The [global financial] crisis will probably affect our target of seven million international travellers this year. However, we should still be able to achieve a growth of over 20% with 6.5 to 6.7 million tourists.” 

Mr Pitana said that Indonesia had invested a lot in new infrastructure and these efforts were starting to pay off. He cited close to 11,500 classified hotels with over 255,000 rooms, 10 world-class convention centres each able to receive up to 5,000 delegates, and 450 first-class shopping centres, which make the country an attractive destination for Singaporeans, Chinese or Malaysians. 

The Indonesian government will extend its Visit Indonesia Year 2008 campaign into 2009. However, new promotions will be more centred on marine and MICE tourism. “We have a unique natural and historical heritage. We have over the years gained recognition from the scuba dive market for our exceptional coral reefs. We also have over 50 national parks and nine UNESCO listed-world heritage sites,” said Mr Pitana. 

The tourism director also said that Indonesia is not only Bali. He beseeched the tourism industry:  “Look beyond Bali please. And discover the amazing diversity of our land.”

New overseas markets for RI can replace falling exports

Abdul Khalik, The Jakarta Post, Jakarta   

While Indonesian exports to traditional markets like the United States, Europe and Japan show some signs of slowing down due to the global financial crisis, buyers from other countries representing potential new non-traditional markets have expressed interest in buying more Indonesian goods. 

Businesspeople from several countries in the region have also expressed willingness to put their money into Indonesia. 

Barry Helberg of the New Zealand Retailers Association and David J. Catty, the director of the ASEAN (Association of Southeast Asian Nations) and New Zealand Combined Business Council, expressed their amazement during a discussion at the recent 23rd Jakarta International Trade Exhibition, on the quality and design of Indonesian furniture. 

"These are top quality goods. It is the kind of furniture New Zealand top end consumers are looking for," Catty said. 

Barry, meanwhile, expressed his optimism that Indonesia's furniture, footwear and apparel products would be accepted by his country's consumers. 

"You see, New Zealanders, who have money to spend, are placing increased emphasis on quality and durability. I think Indonesian products still have potential to penetrate New Zealand markets," he said. 

Total two-way trade between Indonesia and New Zealand currently reached US$2 billion, the Indonesian Ambassador to New Zealand Amris Hassan said. 

New Zealand's furniture, apparel and footwear markets, worth a total of $1.4 billion, were dominated by China and Vietnam. Indonesia's total exports to New Zealand for the three sectors was only $30 million last year, he said. 

"How can we lose to Vietnam?. I think we can no longer view New Zealand markets as a leftover from Australia's. That's why we have proposed that we should have our own trade office in Auckland to increase our exports. I will do my utmost to help our businesspeople willing to export their products to the country," he said. 

Meanwhile, President Susilo Bambang Yudhoyono's special envoy to the Middle East Alwi Shihab said that there was a surplus of $1.6 trillion among the Middle Eastern countries. Indonesia could look to these countries as markets for its products and also seek to attract investment funds. 

He said that some investors from the Middle East, including the Emar Group and the Capital Investment Group, have now entered Indonesia to set up businesses. 

Alwi said that Emar was ready to build tourism sites worth up to $1 billion in Lombok, West Nusa Tenggara while investors from Oman would sign an MOU worth $400 million on a joint investment in an oil and gas field with an Indonesian business group. 

In addition, Capital Investment Group from the United Arab Emirates just launched its branch office in Jakarta, ready to invest in real estate, sea ports and other infrastructure sectors, he said. 

Alwi, however, criticized the country's bureaucrats who have held up permit processes for foreign investment, pointing to the example of a two-year delay in negotiations between investors from Qatar and Bahrain with a local state-owned company. 

Rector of Paramadina University Anies Baswedan said that the crisis had provided momentum for Indonesia to look to alternative markets and sources of investment in Asia and the Middle East to reduce dependence on Western countries and to lessen the negative impact of the financial crisis on Indonesia.

Saipem gets 70-year Riau land concession

Mustaqim Adamrah, The Jakarta Post, Singapore   

The Riau Islands provincial administration has finally granted Italian-based turnkey oil and gas contractor PT Saipem Indonesia a 70-year land concession for its massive proposed project on Karimun Island. 

The concession is part of the administration's efforts to encourage businesses to invest in the province's free trade zones (FTZs) in line with the 2007 law on FTZs, Governor Ismeth Abdullah said late Thursday during a signing ceremony at the Indonesian Embassy in Singapore. 

Also attending the ceremony were Saipem Indonesia offshore area manager Asia Pacific and managing director Michel Lain*, Indonesian Ambassador to Singapore Wardana, Karimun Regent Nurdin Basirun and the head of the Indonesian Investment Coordinating Board's Singapore representative office, Nurul Ichwan. 

"The company will use the 140-hectare land for a production facility, with a production capacity of 20,000 tons of oil and gas and related products," Lain* said. 

Pipelines, he said, would connect platforms and transport oil and gas from offshore to onshore. 

It is estimated that the first phase of construction of the facility will cost US$450 million and provide 5,000 jobs. 

Parent company Saipem International offshore general manager Yves Invona previously said the facility would become the production and logistics base for the Saipem Asia Pacific Group. 

He said the facility would start operations in 2010. 

Governor Ismeth has said the project confirms the revival of foreign direct investment in the province. 

Last year, Riau Islands attracted about $1 billion in investment, more than double the $484 million received in 2006. 

Karimun alone has attracted $700 million in investment this year, according to Ismeth. 

He said he aims to bring in $5 billion of investment during the next five years. 

Located 30 minutes from Singapore by ferry, Karimun is one of the province's three islands, which are designated as FTZs. 

The other islands are the Batam and Bintan Islands . 

Batam's main industries are electronics, manufacturing and shipbuilding. Bintan, with its garment and electronics manufacturing industries, measures 4,063 square kilometers, and Karimun, renowned for its deep-sea port, covers an area of 8,000 square kilometers.

South Korea current largest buyer at trade expo

The Jakarta Post, Jakarta 

South Korea is currently the largest buyer of this year's Indonesian Trade Expo with a total transaction volume of US$4 million. 

Algeria, Pakistan and Bangladesh follow closely with US$2.9 million, $1.5 million and $1.2 million respectively, tempointeraktif.com reported on Saturday. 

The 23rd Expo, held at the Jakarta International Expo Kemayoran, kicked off to a slow start on Tuesday and will close later today. 

The expo has so far only raked in $32.3 million, way below the total targetted volume of $220 million. 

Last year's event reaped $200 million. 

The organizing committee said 2,300 foreign buyers from 108 countries participated at the trade expo, which exhibits Indonesia's leading export products, including furniture, electronics, shoes, textiles and garments as well as commodities coffee, cocoa and rubber. 

"Perhaps more sales will take place today as it is the last day of the expo," chief expo organizer and head of the National Export Development Board Bachrul Chairi said. 

Furniture is still the highest generating product, raking a total of $8.1 million or 25.2 percent of the total transaction value to date. 

Mining products and crude palm oil follow second and third, each generating $7.3 million and $5.8 million.

INDONESIA: Multi Donor Fund Photo Competition

Worldbank

The Multi Donor Fund is again holding a photo competition as an effort to involve partner and implementing agencies staff and consultants, staff of all donor agencies, and beneficiaries in capturing implementation of MDF’s projects. Participants will compete for prizes and a chance to have photos featured in the 2008 Annual Report and other collateral materials. 

Theme: Capacity Building in the Reconstruction and Rehabilitation Efforts 

We strongly encourage staff of World Bank, donor agencies and partners, from amateur to expert photographers, to submit photos. Take advantage of photo opportunities while being on-the-field or traveling for a chance to see your photo in the Annual Report. If not, sponsor colleagues, friends or relatives and share the prize! 

List of prizes: 

• 1st place prize : Rp. 3,000,000
  
• 2nd place prize : Rp. 2,500,000
  
• 3rd place prize : Rp. 2,000,000
  
• Favorite photo   : Rp. 1,000,000
• Other photos selected for publication: Rp. 500,000 each 
  
  

How to participate, you can visit this following links to learn more about the competition:

• Rules of competition
  
• Download entry form
  
• Photography tips 
  

We also welcome sequences of related pictures - do not be afraid to take multiple shots of your subject from different angles and in different lighting conditions! Please note though, sequences should show interaction or process related to capacity building. 

To learn more about MDF projects please visit: http://www.multidonorfund.org/projects

Related Article:

SINGAPORE: Workshop on How to do Business in World Bank-Assisted Projects

RI should build ecological ports: Expert

Bogor, West Java (ANTARA News) - Indonesia, as a maritime country, should develop ecological ports, according to an oceanographer of the Bogor Institute of Agriculture (IPB). 

"Building ecological ports has now become a trend. In essence, the concept means that ports must be built in ways that do not run counter to the sustainable development principle," Prof Dr Eng Tridoyo Kusumastanto, the head of IPB`s Oceanology and Coastal Resources Study Center, said here on Thursday. 

He made the statement to ANTARA in connection with a commitment the German government had made to help Indonesia improve port management through training of port authority officials in the next three years (2008-2010). 

The German government through "InWent Capacity Building International" would team up with the Center for Assessment of Coastal and Marine Resources (PKSPL) and the Community Research and Empowerment Institute (LPPM) of the Bogor Agricultural Institute (IPB). 

He mentioned pollution in the Jakarta Bay as an example of the importance to apply ecological port management in Jakarta. 

"Learning a lesson from the Jakarta Bay pollution case, we need to develop the ecological port concept," he said. 

An international seminar in the Netherlands recently discussed ecological ports focusing on the aspects of sustainable development, he said. 

Ecological ports should also bring benefits to the community, he said. 

The first Germany-funded training course which was attended by officials of the transportation ministry, academicians, state and private ports officers, discussed ecological ports and port security, he said.

Australia to provide $64 mln to help develop Indonesia's infrastructure

www.chinaview.cn  2008-10-23 18:26:11    

JAKARTA, Oct. 23 (Xinhua) -- The government of Australia would provide 64 million U.S. dollars in the near future to assist infrastructure development in Indonesia, a release from the Australian embassy said here Thursday. 

Australian ambassador to Indonesia Bill Farmer said that some of the funds was in form of grant and technical assistance aimed at boosting economic growth in Indonesia. 

He said that the funds would be used for projects such as buildings railway, telecommunication facility, transport, power plant, electricity and sanitation facility. 

The Indonesian government has attempted to build a massive-infrastructure to generate solid economic growth. 

Indonesia targets economic growth to 6 percent next year.

Kereta Api starts construction of Kota-Tanjung Priok railway

The Jakarta Post, Jakarta 

State railway company PT Kereta Api started rehabilitation today of the nine-kilometer rail line from Kota to Tanjung Priok in North Jakarta. 

"Construction began today at Kampung Bandan station," said Akmad Sujadi, Kereta Api's Jakarta spokesperson, as quoted by kompas.com. 

The Kota-Tanjung Priok railbed and track were built long ago, but have fallen into disrepair because of lack of use. Illegal houses have also sprouted up along the railroad. 

Akhmad Sujadi said Kereta Api had given an ultimatum to the remaining squatters along the railway to remove their houses by Friday when Kereta Api would remove any remaining dwellings by force. 

"So far people have voluntarily removed about 70 percent of the buildings," he said, adding the rail line from Kota to Ancol was relatively free off squatters. The challenging stretch would be from Ancol to Tanjung Priok where many squatters have refused to leave. 

Akhmad said Kereta Api plans to regreen the area with 3,000 plantings after squatters have been cleared off. (rid)

Starbucks in RI starts selling Peruvian coffee

Veeramalla Anjaiah, The Jakarta Post, Jakarta   

For lovers of high quality international coffee in Indonesia, good news hit town Tuesday, with Starbucks announcing it would sell Peruvian coffee, one of the finest in the world. 

Peruvian Ambassador to Indonesia Juan Alvarez Vita made the announcement as he hosted a group of journalists Tuesday at a coffee tasting session organized by PT Sari Coffee Indonesia, holder of the Starbucks franchise in Indonesia. 

The history of coffee in Peru, Juan said, began in the 16th century and now Peru is the sixth largest coffee producer in the world. 

The country produced 3.9 million 60-kilogram bags in 2007 on 320,000 hectares of land. 

Peru's coffee production has doubled during the last decade and now it is the country's biggest agriculture export earner. 

"We exported US$517.33 million worth of coffee in 2006 to countries like the U.S., Belgium, Switzerland and other European markets," Peruvian Embassy's deputy chief of mission Carlos Javier Castillo Morales told The Jakarta Post on Tuesday. 

Bloomberg recently reported Peru's coffee harvest may rise 51 percent to 5.9 million bags in 2008 and earn $550 million in export revenue. 

PT Sari Coffee director Anthony Cottan said, "Though we use Indonesian coffee at Starbucks, our customers also want to taste coffee from abroad." 

Peruvian coffee is high in quality and is produced in an ecologically friendly way, Cottan said, which is what moved Starbucks company to buy it, he said. 

Starbucks started operations in Indonesia in 2002 and has since mushroomed across the archipelago. 

"We have 61 outlets in Indonesia and we will be opening three more next month," PT Sari Coffee Indonesia marketing manager Farah Milda said.

Pertamina orders two more vessels

The Jakarta Post, Wed, 02/20/2008 1:18 PM  

JAKARTA : State oil and gas firm PT Pertamina has ordered the construction of two vessels from state ship builder PT Dok dan Perkapalan Surabaya (DPS) for US$29.2 million. 

"The order of these two vessels is an effort to rejuvenate and expand our network," Pertamina president director Ari H. Sumarno said after the signing of the agreement with PDS on Tuesday. 

Pertamina currently owns 26 ships and leases 104 others. 

M. Firmansyah Arifin, director of DPS, said the two vessels were the fifth and the sixth Pertamina had ordered from DPS. 

The two 6,500 Long Ton Dead Weight (LTDW) vessels, which will be delivered in 2011, will be used to distribute fuel throughout the country. (JP/rff)

SBY orders Pertamina to gear up for Natuna block

Rendi Akhmad Witular and Ika Krismantari, The Jakarta Post, Jakarta 

President Susilo Bambang Yudhoyono on Tuesday instructed state oil and gas company Pertamina to prepare to take over the development of the gas-rich Natuna block from U.S. energy giant ExxonMobil Corp. 

Yudhoyono has given Pertamina three weeks to come up with a detailed plan of development for exploring the largest natural gas reserve in Southeast Asia before making a final decision to scrap ExxonMobil's rights to operate the block. 

"The President has ordered Pertamina to get ready for taking over the block. The company will have to prepare the plan of work before the president decides to officially granted the block," Energy and Mineral Resources Minister Purnomo Yusgiantoro told said at the Presidential Palace. 

However, Purnomo declined to elaborate on what step the government would take next should Pertamina's upcoming work plan fail to impress the President. 

Yudhoyono's instruction comes following a recent deadlock in negotiations between the government and ExxonMobil on extending the development of the Natuna D-Alpha block, estimated to hold 46 trillion cubic feet of gas. 

Under existing regulations, Pertamina stands first in line to take over when contracts with private developers are terminated. 

The government claims ExxonMobil's rights expired in 2005 after it failed to show any progress in developing the field. 

ExxonMobil has denied the claim, saying it retained its rights to the block after having sunk some $400 million into exploration. 

The issues over which negotiations foundered, according to Purnomo, were revenue sharing and taxes, contract term and termination, government guarantee, asset depreciation, sunk costs and first-trance petroleum arrangements. 

"We have given ExxonMobil two years to negotiate and to come up with latest feasibility study. But they have failed to meet our requirements, forcing us to shift their rights," he said. 

ExxonMobil holds a 74 percent participating interest in the block, while Pertamina holds the remaining 26 percent. 

Pertamina president director Ari Soemarno said the work plan to be presented to Yudhoyono would include a financing scheme, feasibility study, technology capability, as well as potential partners. 

"It is going to be a complicated project as it will need advanced technology for separating carbon dioxide (CO2) from the gas. If it is realized it will be the world's largest offshore gas exploration ever," he said. 

Ari said several global energy giants, such as Royal-Dutch Shell, Total SA, StatOil and ExxonMobil, were interested in forming a partnership with Pertamina to develop the block. 

The government has estimated at least $30 billion would be needed to develop the block. However, Pertamina previously said the investment could soar to as much as $52 billion, making it the largest investment in Indonesian history. 

Meanwhile, ExxonMobil Oil Indonesia spokeswoman Deva Rachman told The Jakarta Post the company had not yet been advised by the government on this plan. 

She said the company hoped negotiations would go on and a win-win solution could be reached in the near future.

Dairi Prima to invest $180m

Ika Krismantari, The Jakarta Post, Jakarta  

Despite unresolved permit problems, PT Dairi Prima Mineral, a local unit of Australian-based zinc and lead producer Herald Resources, said Tuesday it planned to spend US$180 million for initial exploration activities at its North Sumatra mine. 

Dairi office manager Junjungan Harahap told The Jakarta Post the company had so far spent $50 million to develop infrastructure and road access. 

The company has two concession areas -- Anjing Hitam and Laezahe -- with a combined reserve of 14 million tons of lead and zinc. 

Junjungan estimates that with such reserves the exploitation period will last 15 years. 

He also said he hoped the company would be soon able to secure all required permits from the government to carry out the mining activities, which are located in forestry areas. 

Dairi is 80 percent owned by Herald and 20 percent owned by state mining company PT Aneka Tambang (Antam). 

Herald has been in the spotlight recently over a buy-out offer from Antam and PT Bumi Resources, the country's largest coal producer.

Indonesia key in RAKIA's expansion

Andi Haswidi, The Jakarta Post, Singapore 

Allocating some US$1.5 billion worth of capital investment for a mammoth project in South Sumatra, Ras Al Khaimah Investment Authority (RAKIA) says it sees Indonesia as key in its global expansion plan. 

"We are currently conducting a joint feasibility study of the investment with the South Sumatra government. We expect it to be complete within six months," Madhu Koneru, managing director of RAKIA's subsidiary, RAK Minerals & Metals Investments (RMMI), said Thursday in Singapore. 

Koneru said the investment plan aimed to build an entire mining-to-export chain of coal industry and several other potential industries. 

Considering it has the largest reserves of coal in the country, South Sumatra's government, Koneru said, was aiming to capitalize its strategic location and get full benefits from its natural resources, and induce social and economic growth by attracting investment. 

The planned infrastructure development, he said, would include world-class integrated industrial infrastructure including a rail transportation corridor and deep-water sea port to handle bulk containers and cargo. 

"RAKIA will basically invest in developing the Tanjung Api-api Port, aiming to acquire about 20 percent of shares in the port," Koneru said. 

The railway (expected to span 90 kilometers) will connect the port with Palembang, focusing on catering for trains delivering supplies to and from the port. 

"Besides supplies, we would also be open to other options for the railway -- maybe for commuters; it depends on the local government's decision," Koneru said. 

As a subsidiary of RAKIA, RMMI would be in charge of the industrial park, which would include a metal refinery and smelting and metal based fabrication industries, Koneru said. 

RMMI is 50 percent owned by mining company Trimex Group and the remaining 50 percent is owned by RAKIA -- wholly owned by the Ras Al Khaimah government, one of the seven kingdoms of the United Arab Emirates. 

Koneru said the Ras Al Khaimah government had been in the mining business for the past 50 years, focusing on resources for construction such as limestone. 

"The world's tallest tower, Burj el-Dubai, was built using cement and concrete from RAK natural resources." 

"So we are not new to the mining business, it's just that we decided to go global," he said. 

On March 19, he said, RAKIA and RMMI met with President Susilo Bambang Yudhoyono in UAE, where the two companies presented their strategic plans to expand investment footprints across the world in the minerals and metals sector. 

"Investment in Indonesia is a key step in the company's strategy to scout potential growth zones in Asia," he said. 

Outside the investment plan in South Sumatra, Koneru said, RMMI was exploring two potential coal-mining fields in Kalimantan, but refused to elaborate. 

As part of its global expansion, RMMI has so far invested $250 million in the Congo by acquiring stakes in two mining companies, and another $200 million in Eastern Europe by acquiring an Armenian mining firm, TSCC Armenia.

New oil refinery in Cepu to starts operating in February 2009

Jakarta (ANTARA News) - The government expects to start operating a new oil refinery in Cepu in February next year. 

The director general of oil and gas of the ministry of energy and mineral resources, Evita H Legowo, said here on Wednesday the refinery would process crude from the Cepu Block of oil fields into a number of fuel oil products. 

"The capacity of the refinery reaches 6,000 barrels of crude a day," she said according to the office website. 

Evita said the government were planning to develop two other oil refineries namely in Banyuasin with a capacity of 800 barrels a day and Bojanegara with a capacity of 300,000 barrels a day. 

The refinery in Banyuasin will be developed jointly by the local government and a private party while in Bojanegara by state-owned oil company PT Pertamina and an Iranian company. 

Evita however said she was not sure yet if the refinery project in Bojanegara would go as planned. 

Until now she said Indonesia only has seven refineries producing around 900,000 barrels of oil fuels a day to meet domestic need and they are all operated by Pertamina. 

She said fuel oil demands in the country had reached 1.4 million barrels a day and therefore the country had to import the shortfall.

Bosowa to name strategic partner in first quarter 2009

Jakarta (ANTARA News) - PT Semen Bosowa expects to get an investor to become its strategic partner in the first quarter in 2009 to develop the company, its chief executive officer, Erwin Aksa, said here on Monday. 

"It is hoped there will already be an investor to join in the company in the first quarter of 2009," he said. 

The cement company based in South Sulawesi is currently needing funds to increase its production capacity. 

The company actually already plans to conduct an Initial Public Offering as one of the options to raise the money which is expected to reach US$100 million. 

However "considering current market situation which is not favourable I think the plan will be postponed and so the company will focus on seeking a strategic partner," he said. 

Three investors that have expressed their interest to become the company`s strategic partner so far are Lafarge from France that has so far owned stakes in the Andalas cement factory, the Siam Cement which is the largest cement producer in Thailand and YTL from Malaysia. 

"The possibility to conduct an IPO is still to be further considered but it will likely be materialized after the company gets an investor partner," he said. 

He said in the coming partnership agreement Bosowa would be the majority shareholder and the investor a mere minority stakeholder to help improve the company`s technical operations, management and technology application. 

Erwin said he hoped with the presence of an international-level investor in the company PT Bosowa would become the fourth largest cement company in the country. 

In 2008 Bosowa`s production is projected at 2.5 million tons a year while until September this year it has produced up to two million tons. 

"With the presence of the strategic investor Bosowa`s production is expected to reach five million tons a year in 2012," he said. 

At present 98 percent of five percent of the company`s market share is domestic, leaving the rest two percents for Timor Leste.

Kuwait invests US$300 million in Mamuju, West Sulawesi

Mamuju (ANTARA News) - A Kuwaiti company, Gulf Investment House (GIH), has invested around US$300 million in Mamuju district, Mamuju, West Sulawesi, through capital participation in the Mamuju regional company (Perusda Mamuju). 

The memorandum of understanding on the investment was signed by Perusda Mamuju`s president director Benyamin S and GIH`s president director Raseed Al-Badab here on Tuesday, in the presence of Mamuju district head Suhardi Duka and the chairman of the district`s legislative assembly, Thamrin Endeng. 

Raseed Al-Badab said on the occasion that his company was attracted to invest in Mamuju because of the region`s natural as well as human resource potentials that could be exploited to support investment activities. 

He said his company had had investments almost across the world such as Europe and America but because it was difficult to develop them the company decided to move them to Asia and to Indonesia in particular. 

"We are attracted to invest in Indonesia and in Mamuju in particular because most of the country`s population are Moslem and therefore making it easier for the company to conduct shariah-based investment," he said. 

He said he hoped the investment that his company had put in Mamuju would be successful so that it could contribute positively to the development of the company as well as the people in the region. 

Suhardi Duka meanwhile said that the US$300 million investment was an initial GIH capital participation as a contractor for Perusda Mamuju before it would later invest in West Sulawesi in line with the existing law. 

He said GIH would invest in the region for 30 years to process natural resources in Mamuju such as oil and gas, gold, coal, nickel, iron ore and potentials in the forestry as well as plantation sector. 

In view of that he said he asked Perusda Mamuju as a GIH partner to cooperate professionally and transparently with the Middle Eastern company. 

"We hope that the investment of GIH could empower the local people and increase local income for raising the living standard of the people," he said.

US companies ready to invest In Indonesia

Jakarta (ANTARA News) - Twenty five American companies were planning to make investments in Indonesia in spite of the current financial crisis facing their country, it was learned from a meeting between a US-ASEAN Business Council delegation and the Indonesian minister of industry Fahmi Idris here on Wednesday. 

The US companies include Dow Chemical, General Electric, Mosanto Corp., Pfizer, Conoco Philips, Johnsons & Johnsons, Microsoft, and Oracle which had already been investing in Indonesia, and new investors such as Guardian and Martahon Oil. 

Fahmi Idris said that in principle the companies wished to invest in the country, but still awaiting the country`s secured gas and electricity supply,as well as any tax incentives the country would offer. 

For example, he said, Guardian plans to invest US$150 million in the production of flat glass, while Mosanto around US$12 million in supplying plant seeds. 

Marathon Oil meanwhile plans to conduct production cooperation with PT Pertamina, while Caterpillar wishes to develop its line of production and General Electric to invest in locomotive production in cooperation with PT Inka. 

Fahmi said he believed the current global economic crisis that broke out in the US and Europe prompted the American companies to seek safer places for investment. 

"They are just seeking the right countries to save themselves namely countries whose economy is not badly affected by the crisis," he said. 

He said Guardian besides Indonesia was now also considering to invest in other Southeast Asian (Asean) countries such as the Philippines and Thailand. 

"They however believe Indonesia`s economy is now more stable," he said. 

A US delegate in the meeting , Chris Fedderson, meanwhile said that US companies had chosen Indonesia as their investment destination because the country`s economy had been favorably growing by six percent. 

"Indonesia has a large market and therefore has good business prospects," he said. 

He said besides Indonesia, the US businessmen would also visit other countries such as Vietnam, Thailand and India also seeking investment opportunities. 

Vice president of the US-ASEAN Chamber of Commerce and Industry William Warmon meanwhile said that the US companies were not discouraged by the crisis to invest in Indonesia. 

In order to speed up the realization of business he called for the country`s infrastructural readiness including electricity supply. 

In response to it minister Fahmi Idris said that electricity supply was no longer a crucial problem in the country particularly in Java. 

He said in June 2009 three new power plants would start operating namely the plant in Labuan, West Java, with a capacity of 600 MW, Indramayu, also in West Java, with a capacity of 500 MW and in Rembang, Central Java. 

On gas supply he said that the pipeline to distribute gas from a number of refineries in Sumatra to Java had also been operating well so that factories around Banten, Cilegon and in the northern parts of Java were no longer facing gas supply shortfalls. 

On their request for tax incentives the minister said that it was no problem because the matter had already been laid down in a government regulation.

Marathon subsidiary to drill off Indonesia

Houston (ANTARA News) - Marathon Oil Corp. said Wednesday that its Marathon Indonesia New Ventures Ltd. subsidiary has obtained a 49 percent interest and right to operate in an offshore field that could yield natural gas or oil. 

The 1.2-million acre Bone Bay Block is off southern Sulawesi Island in Indonesia and is described by Marathon as a "high potential, under-explored area." 

Marathon expects to enter into a production-sharing contract with the Indonesian government before the end of the year and drilling is expected to begin in 2011. 

Kaizan Oil & Gas LLC, a subsidiary of Black Gold Energy LLC, was awarded the remaining 51 percent interest in the Bone Bay Block. 

Shares of Marathon fell $4.10, or 16 percent, to $22.26, in afternoon trading. AP reported.

Indonesian palm oil producers ready to use biodiesel

Pekanbaru (ANTARA News) - Most Indonesian palm oil producers are ready to use biodiesel fuel to increase the use of crude palm oil while the price of the commodity in the world market has dropped.

"After inspecting a number of regions including Riau, I conclude that many palm oil factories were ready to use biodiesel," the executive chairman of the Association of Indonesian palm oil producers (GAPKI), Derom Bangun, said here on Tuesday. 

He made the statement in reaction to a number of economists who considered the call for use of vegetable oil fuels in palmoil factories only giving more burden. 

He said the use of biodiesel was posssible because many palm oil factories had had the equipment capable for it. 

"Biodiesel could be used by mixing it with the diesel fuel to activate turbine in the factory. New equipment is not needed," he said. 

He said the use of biodiesel in palm oil factories so far could reduce around five percent of industrial diesel fuel need reaching 27 million tons a year. 

The use of biodiesel in palm oil factories could increase domestic use of palmoil up to 1.35 million tons a year, he said. 

In view of that he said crude palm oil use in the country could rise up to 4.5 million tons out of this year`s production of 18.8 to 19 million tons. 

He said the rise in the use of crude palm oil in the country may help reduce the impact of the declining crude palm oil exports as a result of the current global economic crisis.

RI and China agree to renegotiate Tangguh LNG contract

Beijing (ANTARA News) - Indonesia and China have agreed that their technical teams will meet in the near future to renegotiate their Tangguh liquefied natural gas (LNG) contract. 

The agreement was reached in a bilateral meeting between visiting Indonesian President Susilo Bambang Yudhoyono and his Chinese counterpart Hu Jintao at the Great Hall of the People here on Thursday. 

In the 20-minute meeting, President Yudhoyono mentioned Indonesia`s intention to renegotiate the LNG Tangguh price in the contract with the government of China`s Fujian province. 

Meanwhile, presidential spokesman Dino Pati Djalal said the two countries` leaders did not discuss the LNG contract in detail during their meeting. 

But President Yudhoyono told President Hu Jintao that Indonesia`s negotiating team, led by Finance Minister Sri Mulyani, would visit Beijing, China, for the renegotiation. 

"Our negotiating team will come to Beijing in the near future to renegotiate the Tangguh LNG contract," Dino said. 

He added the Chinese government understood Indonesia`s position in the renegotiation process. 

"With the arrival of Indonesia`s negotiating team in Beijing later, it means they are ready to discuss the matter," Dino said. 

He said in the bilateral meeting, Yudhoyono and Hu agreed that in spite of the global financial crisis, the concessionary loan program China had initiated for Indonesia would continue. 

According to Dino, President Hu Jintao wanted Indonesia-China cooperation in infrastructure projects maintained and continued at bilateral, regional and international level. 

President Yudhoyono for his part wanted cooperation with China stepped up in the field of energy, especially in the construction of power plants under China`s concessionary loan program. 

On the occasion, President Yudhoyono also invited President Hu to come to Indonesia in an effort to develop the two countries strategic cooperation. 

In the bilateral meeting, President Yudhoyono was accompanied by Coordinating Minister for Political, Legal and Security Affairs Widodo AS, Trade Minister Mari Pangestu, State Minister for State Enterprises Sofyan Djalil, Foreign Affairs Minister Hassan Wirayuda, Energy and Mineral Resources Minister Purnomo Yusgiantoro, Health Minister Siti Fadilah Supari, State Minister for Environmental Affairs Rachmat Witoelar, Public Works Minister Djoko Kirmanto, Cabinet Secretary Sudi Silalahi, State Intelligence Agency (BIN) chief Syamsir Siregar, and Regional Representatives Council (DPD) Vice Chairman Irman Gusman.

President Yudhoyono invites Asian, European bizmen to invest in Indonesia

Beijing (ANTARA News) - Visiting Indonesian President Susilo Bambang Yudhoyono has invited Asian and European investors to invest in various fields in Indonesia. 

"I invite you to invest in various business opportunities in Indonesia," President Yudhoyono told hundreds of Asia and European businessmen at the 11th Asia-Europe Business Forum here on Thursday. 

The business forum was organized in conjunction with the 17th Asia-Europe Summit (ASEM) from October 24-25, 2008. 

The summit is attended by 43 heads of state/government and the chiefs of two international organizations. 

At the business forum, President Yudhoyono was accompanied among others by Coordinating Minister for Political, Legal and Security Affairs Widodo AS, Health Minister Siti Fadilah Supari, Foreign Affairs Minister Hassan Wirayuda, State Minister of Environmental Affairs Rachmat Witoelar, State Minister for State Enterprises Sofyan Djalil, and Cabinet Secretary Sudi Silalahi. 

On the occasion President Yudhoyono offered the foreign investors opportunities to invest in energy, infrastructure, and agriculture. 

He said the Indonesian government had created and would continue to create a conducive business climate for foreign investors in an effort to maintain cooperation with foreign parties. 

"We will continue to create a conducive business climate in an effort to attract foreign investors," Yudhoyono said. 

He said foreign businessmen should not hesitate to invest in Indonesia because the business climate in the country was safe and conducive for them. 

Indonesia, he said, was now one of Asia`s resurgent countries and worthy of becoming a business partner of foreign investors intending to expand their business internationally. 

In his 45-minute address, Yudhoyono also cited the progress Indonesia had made in various respects , including in its economy which, he said, had seen significant development.

ADB ready to provide $30 m loan for RI`s rice development

Jakarta (ANTARA News) - The Asian Development Bank (ADB) is ready to provide US$3 million in loans to develop rice through the system of rice intensification (SRI) in Indonesia, an Agriculture Ministry official said. 

The project would target three districts of Bandung, Cianjur and Karawang in West Java from 2009 to 2011, Director of Land Management of the Directorate General of Land and Water Management at the Agriculture Ministry Suhartono said on Tuesday. 

"The project will involve 150 farmer groups and require 3,000 hectares of paddy field," he said on the sidelines of a national workshop on the system of rice intensification (SRI) at the Agriculture Ministry building here. 

In addition to the ADB loans, the Agriculture Ministry would this year set aside funds to cultivate rice on 4,260 hectares of land through the system across the country, he said. 

The project would involve 213 farmer groups with each of them cultivating rice on 20 hectares of land through the system, he said. 

So far, 28 districts in 15 of the country`s 33 provinces had cultivated rice on 3,200 hectares of land by applying the system, he said.

Dirgantara Indonesia strikes Eurocopter deal worth $42m

The Jakarta Post, Tue, 10/21/2008 11:25 AM 

State aircraft manufacturer PT Dirgantara Indonesia (DI) has signed a US$42 million contract to assemble components of Super Puma MKII helicopters for Eurocopter Indonesia, the local unit of helicopter maker Eurocopter Group. 

"The deal verifies the ability of DI as a competent partner in the aerospace business for the manufacturing of aircraft parts and components in Asia," said DI president director Budi Santoso after the contract signing Monday. 

The contract was signed by Budi and Henri Stell, president director of Eurocopter Indonesia, at the office of the state minister for state enterprises. 

"DI keeps expanding its market in the aerospace business. The deal confirms global demand as the Super Puma brand is among the most sold brands in the international market," said Budiman Saleh, DI aerostructure director. 

Under the deal, a series of training programs will take place between the two parties in the first three years, including a permanent posting of a Eurocopter team in Bandung, West Java. The Bandung posting, also the location of DI headquarters, will allow for technical assistance and the exchange of ideas and technology. 

The actual production process will start in 2011. 

Eurocopter is the world's number one helicopter manufacturer. Eurocopter's products account for 30 percent of the fleets across the globe. 

Dirgantara was founded in 1976 and provides aircraft design, development and assembly for commercial and military planes and spare parts. 

Among its partners, in addition to the Indonesian Air Force, are the U.S. Coast Guard and the governments of Malaysia, the United Arab Emirates and Pakistan. -- JP/Olivia Dameria

Two new geothermal power plants to operate in 2009

Olivia Hutabarat and Alfian, The Jakarta Post, Jakarta 

Two geothermal power plants with a total capacity of 122 megawatts (MW) could be in operation by next year to help ease the country's power supply shortage. 

Sugiharto Harsoprayitno, the Energy and Mineral Resources Ministry's director of geothermal utilization, named the two plants as the Wayang Windu plant's unit 2 in West Java, with a capacity of 120 MW, and the Sibayak plant in North Sumatra, with a capacity of 2x6 MW. 

"Important equipment, such as turbines, have arrived at the sites, so we are optimistic the plants can begin operating next year," he said. 

The government has set a target for the Kamojang plant in West Java to start operating by 2009, but the project is caught up in a wrangle over a permit to operate in a protected forest. 

Indonesia has the world's largest geothermal reserves, with an estimated capacity of up to 27,000 MW of electricity -- equal to around 40 percent of the world's geothermal reserves. 

However, Indonesia's 18 operational geothermal plants only produce a combined 1,050 MW. 

These 18 power plants include: Salak in West Java (375 MW), Darajat in West Java (255 MW), Kamojang in West Java (200MW), Wayang Windu in West Java (110 MW), Dieng in Central Java (60 MW), Lahendong in North Sulawesi(40 MW), and Sibayak in North Sumatra (12 MW). 

The government has said geothermal power will contribute 30 percent to its second 10,000 MW power plant construction program. However, investors have demanded a revision of the government's policy on pricing. 

Meanwhile, PT Pertamina Geothermal Energy, a subsidiary of state oil and gas company PT Pertamina, is also planning to have the Lahendong geothermal power plant up and running by the end of 2008. 

The plant will have a total capacity of 60 MW, geothermal energy director Abadi Poernomo said. 

Sugiharto said the government would soon open bidding for geothermal utilization at 11 sites. 

However, he said he doubted the government target to utilize 3,000 MW power from geothermal plants by the end of 2011 would be reached, because of the long delay in pricing negotiations with state power company PT PLN. 

Investors developing geothermal sites in Indonesia must sell the electricity to PLN. 

They have demanded PLN revise the price of geothermal-produced energy in Sumatra, saying the current price is not feasible. However, PLN has thus far refused to revise the price.

Jakarta to host "Pesta Blogger" on Saturday

The Jakarta Post, Jakarta 

Information and Communication Minister Mohammad Nuh said on Wednesday that Jakarta would host this year's national blogger gathering on Saturday, heralding the theme "Blogging for Society". 

Nuh said the event was to be titled Pesta Blogger 2008 and would be held in the BPPT II building on Jl M.H. Thamrin, Central Jakarta. Nuh added that the gathering would be attended by the U.S. ambassador to Indonesia Cameron R. Hume. 

"To establish an information-based society, we need creativity. Events like this undoubtedly give people room to express themselves," Nuh said, as quoted by kompas.com. 

The event's administrative chairman, Wicaksono, said bloggers from across Indonesia would participate, and that his team expected to double the attendance levels seen at last year's gathering. 

"We hope this event will make a positive contribution to society," Wicaksono said. (and)

Indonesia to host 5th World Islamic Economic Forum

The Jakarta Post | Tue, 10/21/2008 8:54 PM  

Indonesia is scheduled to host the 5th World Islamic Economic Forum (WIEF) in March next year, heralding a theme of "Food and Energy Security & Stemming the Tide of the Global Financial Crisis", an official said. 

An MOU for the event was signed on Monday by former Malaysian deputy prime minister and WIEF board of trustees chairman, Tun Musa Hitam, and (Indonesian) State Minister for State Enterprises Sofyan Djalil as chairman of the organizing committee. 

The forum is not exclusively for Islamic businessmen, although it was first established under the Organization of the Islamic Conference (OIC), Tun Musa said. 

The WIEF was first formed in 2003 during the 10th OIC Summit, and has both corporate and individual members. WIEF organizes global and regional forums, with the aim of fostering partnership among Muslim entrepreneurs and between Muslim and non-Muslim businessmen. The 4th WIEF was held last May in Kuwait. 

So far this year, Indonesia has attracted investment commitment worth US$5 billion, or half of this year's investment target from Muslim countries, said Alwi Shihab, the President's special envoy for the Middle East, on the sidelines of the MOU signing. 

While the world was facing a serious economic downturn due to the U.S. liquidity crisis, Alwi said, Middle Eastern investors would not back down with their investment plans. 

"But I have to stress that regional government bureaucracies play an important role here. Investments will accelerate faster if they do not slow the process down," he said. (iwp)

Cap rattan exports to help local industry

Mustaqim Adamrah, The Jakarta Post

The Industry Ministry seeks to decrease rattan exports to help ensure supply for the local furniture industry.

Benny Wahyudi, the ministry's director general for agriculture and chemical industries, said last week the ministry was in the process of submitting a request to the Trade Ministry to revise a 2005 Trade Minister regulation on rattan exports.

"We want (the Trade Ministry) to only issue export permits when raw rattan producers are able to provide enough supply for domestic rattan craftsmen," he said last Friday.

Under the 2005 regulation, the government allows a maximum 25,000 tons of raw rattan and 16,000 tons of processed rattan to be exported per year.

"This (planned revision) is also expected to boost the value of our rattan exports," he said.

The revision is also expected to limit the number of companies eligible for raw-rattan export licenses, Industry Minister Fahmi Idris said previously.

"Export licenses will later be given only to companies based in raw-rattan producing regions," he said during a meeting with members of the House of Representatives Commission VI overseeing industry and trade.

The country produces 600,000 tons of raw rattan per year, or 75 to 80 percent of the world's total production. Sumatra, Kalimantan, Sulawesi and Papua are rattan-producing regions.

The request was prompted by calls by the Indonesian Furniture Entrepreneur Association (Asmindo) -- which represents almost all of Indonesia's rattan users, accounting for an annual demand of 300,000 tons of the commodity -- to further limit raw rattan exports.

Asmindo chairman Ambar Tjahyono said many rattan companies were exporting rattan beyond their allotments, causing a supply shortage for domestic craftsman on Java.

In addition to a limit on exports, tighter monitoring and supervision are necessary to boost the local furniture industry, said Ambar, adding that the association hoped the Trade Minister would soon review the regulation.

Furniture exports, including rattan-based items, reached US$2 billion last year from $1.8 billion in 2006.

Fahmi has said the government expects furniture exports to reach $3 billion by the end of 2009.

HSBC to acquire Bank Ekonomi to double presence

The Jakarta Post | Mon, 10/20/2008 8:07 PM

HSBC Holdings announced in London on Monday it would acquire majority ownership of Indonesia-based Bank Ekonomi for US$607.5 million, as a step toward doubling its presence in the country.

HSBC would acquire a 38.84 share in Ekonomi from PT Lumbung Artakencana, 38.6 percent from PT Alas Pusaka and 11.45 percent from individual shareholders, giving it 88.89 percent ownership of the thriving bank.

Under Indonesian law, HSBC will be required to make a mandatory tender offer for the outstanding 10.11 percent of Bank Ekonomi.

"The acquisition will enhance HSBC's commercial banking business in Indonesia, extend the group's presence in the retail banking sector and almost double HSBC's network to more than 190 outlets in 24 cities across the country," HSBC says. (and)