Ras Al Khaimah Plans $5 Billion Indonesia Venture

Jakarta Globe, Bambang Djanuarto | October 19, 2010

The Argo Gajayana passing through Malang in East Java. Ras Al Khaimah, one of the sheikhdoms of the United Arab Emirates, and Trimex Group plan to invest $5 billion in Indonesian construction projects, including a 130 kilometer railway on Kalimantan. (JG Photo/Afriadi Hikmal)

Jakarta. Ras Al Khaimah, one of the sheikhdoms of the United Arab Emirates, plans to invest $5 billion in Indonesian construction projects as part of a joint venture with Trimex Group.

MEC Holdings, the venture overseeing all of Ras Al Khaimah and Dubai-based Trimex’s Indonesian projects, will spend $1 billion to build 130 kilometers (81 miles) of railway on Indonesia’s part of Borneo island, executive vice chairman Madhu Koneru said on Tuesday. The link will be able to transport as much as 64 million metric tons of coal a year, he said.

“Construction will start in 2012 and we expect to complete the project in 2014,” Koneru said in an interview in Jakarta after meeting Alwi Shihab, Indonesia’s special envoy to the Middle East.

Indonesia, Southeast Asia’s largest economy, is trying to attract investment in infrastructure as President Susilo Bambang Yudhoyono seeks to deliver average growth of 6.6 percent over the remainder of his second and final term ending in 2014.

MEC Holdings will also invest $500 million to develop a coal mine in Muara Wahau, East Kalimantan province, and build a port with an annual capacity up to 34 million tons, Koneru said.

The venture will team up with National Aluminum Co. to build a 500,000-ton aluminum smelter and power plant in East Kalimantan, according to Koneru. That investment may total as much as $3.5 billion, he said.

Bloomberg

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Seven foreign investors to build cocoa plants in RI

Antara News, Monday, October 18, 2010 22:30 WIB

Jakarta (ANTARA News) - Seven foreign investors have expressed keen interest in building cocoa processing plants in Indonesia following the imposition of duties on cocoa exports as of April 1, 2010.

The seven investors are ADM Cocoa and Olam International of Singapore, Guanchong Cocoa of Malaysia, Cargill and Mars of the United States, Armajaro of Britan, and Ferrero of Italy, Director General of Agribusiness at the Industry Ministry Benny Wachjudi said on Monday.

"I don`t know when the investors will start investing. But they have asked for clarification on the possibility of the government reviewing the imposition of duties on cocoa exports," he said.

Benny said Guanchong Cocoa was likely to build a cocoa processing plant with an annual capacity of 50 thousand tons early next year.

In addition, he said local cocoa producer PT Bumitangerang Mesindotama would also double the production capacity of its plant in Tangerang, Banten province, to 80 thousand tons per year.

The expansion project which would cost an estimated US$40 million would be completed in eight months` time, he said.

Benny said a number of downstream cocoa processing plants had begun to revive their activities after they ceased operation.

Chairman of the Indonesian Cocoa Producers Association (AIKI) Piter Jasman said the imposition of duties on cocoa exports had a positive impact on the growth of downstream industries.

"Fifteen AIKI members have raised their production capacity. The national cocoa powder and butter production is projected to reach 300 thousand tons in 2011," he said.

Govt to build 1,000 temporary shelters in flood-hit Wasior

Antara News, Monday, October 18, 2010 19:28 WIB

Wasior, W Papua (ANTARA News) - The government will soon build 1,000 temporary shelters for victims of a flash flood that swept through Wasior town in West Papua province on October 4, a Public Works Ministry official said.

The temporary shelters would be built after the emergency response period ended, Amirudin, head of the settlement development sub-directorate at the ministry`s directorate of housing, planning and urban development, said here on Monday.

The emergency response period which was supposed to end on October 14 had been extended to the end of October at President Susilo Bambang Yudhoyono`s request.

"Therefore, we will start building the temporary shelters after the end of the emergency response period," he said.

Amirudin said he could not yet ascertain technically the model of the temporary shelters.

"It is likely they will be built in the form of temporary barracks made of wood," he said.

He said it would take three weeks or more for the government to build the temporary shelters.

The relief foundation Aksi Cepat Tanggap (ACT) said earlier it would also build shelters to accommodate residents who lost their houses in the flash flood.

ACT Program Director Bayu Gawtama said the shelters equipped with public facilities could accommodate 70 to 100 families each, depending on the plot of land on which they were to be built.

Amirudin said the government hailed assistance from various parties to build temporary shelters in the flood-affected area.

Data from the National Disaster Mitigation Agency show at least 4,711 people who have fallen victim to the flash flood are currently being accommodated in Manokwari, around 240 km from Wasior. Some 2,554 others found shelters at their own initiative or moved in with relatives.

Around 2,652 victims have remained in Wasior but have been evacuated to emergency camps while 355 others have moved to Nabire.

The Wasior flash flood has reportedly killed at least 124 people, and left 123 others still missing.

The town was covered with mud, logs and rocks following the flood and badly needs heavy-duty equipment for evacuation and cleaning operations.

The flood also injured 853 people and forced 4,625 others to move to safer places.

Bengkulu govt to survey site for satellite launching station

Antara News, Sunday, October 17, 2010 21:27 WIB

Bengkulu (ANTARA News) - The Bengkulu provincial government will soon survey a location for a satellite launching station in Enggano island in North Bengkulu district.

A proposal for the budget of the project had been made in the revised 2010 statebudget, Head of the Bengkulu Provincial Development Planning Board M Nasyah said on Sunday.

The provincial government and the National Aeronautics and Space Agency (LAPAN) signed an agreement in August this year to build a satellite launching station in Bengkulu.

Under the agreement, both sides will form a team of officers to conduct a number of studies and surveys to decide a location for the satellite launching station,he said.

"The LAPAN team will conduct the survey, including a six-month feasibility study andan environmental impact analysis. Hopefully, work on the construction of theproject will start in 2011," he said.

Meanwhile, chief of the Enggano Customary Institute Pa`buki Rafli Zen Kaitora asked the government to familiarize the local people with the plan to build the satellite launching station in Enggano island.

He said he found out about the plan from the local media when he was in Bengkulu city."The Enggano people has not been told about the plan," he said.

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PT Angkasa Pura to expand five airports

Antara News, Friday, October 15, 2010 20:48 WIB

Jakarta (ANTARA News) - PT Angkasa Pura I plans to expand five airports in the country in the next two or three years with an investment reaching Rp4 trillion, its president director, Tomy Sutomo said here on Friday.

"The airports to be expanded are Ngurah Rai in Denpasar, Bali, Sepinggan in Balikpapan, Adi Sutjipto in Yogyakarta, Juanda in Surabaya and Ahmad Yani in Semarang," he said after signing a collective labor agreement for 2010-2012 between the company`s board of directors and employee association and union.

He said the expansion was needed to increase service in the airports. In general, he said, the airports are already overcapacity making their service to decline.

Citing an example he referred to the case of Ngurah Rai airport in Bali which was initially designed for accomodating 1.5 million passengers a year but was now accomodating more than 9.5 million passengers a year consisting of 4.5 domestic and five foreign passengers.

He said the first to be expanded would be Ngurah Rai early next year.

The enterprises ministry as the shareholder and the ministry of transportation have already given the permits, he said.

He said the documents for bidding some works had already been prepared and hopefully the project would all be completed in 2013.

He said for Ngurah Rai around Rp2 trillion would be needed, Rp1.25 trillion of it from loans and the rest from the company`s internal cash.

He said the company would cooperate with the Bali provincial government to help clear 129,000 square meters of land needed for the project.

The company expected its income this year to reach Rp2.361 trillion with a net profit of around Rp500 billion.

Until the third quarter this year, the state-owned airport operator company for the eastern region already earned Rp1.79 trillion.

RI diplomats donate Rp5.63 billion for W Sumatra quake victims

Antara News, Friday, October 15, 2010 14:04 WIB

Padang, West Sumatra (ANTARA News) - Vice Minister for Foreign Affairs Triyono Wibowo handed over funds amounting to Rp5.63 billion collected from Indonesian diplomats, including ambassadors, overseas for victims of West Sumatra`s 2009 earthquake.

The vice minister presented the financial assistance at the West Sumatra governor`s office, here, Friday.

The funds collected by the foreign affairs ministry, was meant for education infrastructure renovations, including elementary schools in Padangpariaman, Bung Hatta University and Andalas University.

West Sumatra was rocked by 7.9-magnitude earthquake which devastated Padang city on and its surroundings on September 30, 2009, and killed at least 1,195 people.

Data released on Saturday showed that a total of 15,159 building structures were destroyed, 3,980 damaged and 6,737 others were affected.

Communications were disrupted, electricity supplies were cut off and water for public consumption ran short.

A number of hotels, restaurants and their supporting facilities were also destroyed. Of the 47 star-rated hotels in the province, 24 were damaged, 11 of which devastated, like the Ambacang, Rocky Plaza, Mariani, Nuasa and Hayam Wuruk hotels.

The West Sumatra`s Padang city administration alone suffered a loss of more than Rp7 trillion in the earthquake.

The loss included damage to clean water pipelines built under the city`s roads.

KPPU Says All Clear for Unilever Acquisition

Jakarta Globe | October 14, 2010

Jakarta. The Business Competition Supervisory Commission says it has no objection for Unilever Indonesia Holding BV to acquire Sara Lee Body Care Indonesia after it found no evidence of monopolizing practices.

The commission, also known as the KPPU, began a comprehensive evaluation of the companies’ products on July 9, particularly roll-on deodorants and men’s hair cream, after a preliminary study failed to reach a conclusion.

Under competition regulations, the merged company is not allowed to have more than a 50 percent share of the market for its products.

On Thursday, the KPPU said in an e-mailed statement that its evaluation had found no anticompetitive behavior that would negatively affect consumers because the markets for each product made it difficult to fix prices.

With roll-on deodorants, the proposed merger was found not to impact on other players’ entry into the market.

“Making deodorants does not require highly sophisticated technology, so the barriers to enter the market is relatively low,” the KPPU said.

As for men’s hair cream, the commission said the already saturated market would not allow for one company to dominate the market.

Franky Jamin, general manager at Unilever Indonesia, said the KPPU had never objected to the takeover bid.

In September 2009, Unilever’s parent company announced that it would acquire Sara Lee’s personal care brands in a deal worth $1.9 billion.

The KPPU requires companies to notify it of proposed mergers and acquisitions, or face billions of rupiah in fines.

Chinese company to build steel plant in S. Kalimantan

Antara News, Thursday, October 14, 2010 17:26 WIB

Kotabaru, South Kalimantan (ANTARA News) - Wuhan Iron and Steel Corporation (Wisco Group), China`s third biggest steel maker, plans to build a steel plant in Kotabaru district, South Kalimantan, in cooperation with PT Sebuku Iron Lateritic Ores (SILO).

The Chinese company would soon send its assistant president director to discuss the plan with Kotabaru district head H Irhami Ridjani, PT Sebuku Iron Lateritic Ores human resources development and general affairs manager IDK Dharmaja said here on Thursday.

Dharmaja said Wuhan Iron and Steel Corporation currently produced 30 million metric tons of steel per year.

"We do not know yet whether they will build a steel plant in Kotabaru with an annual production capacity of 30 million metric tons or below," he said.

He said SILO Group had so far run a number of iron ore industries in Indonesia and the Philippines to meet demand for raw materials to produce steel.

"To meet demand for raw materials we have iron ore industries in Manila and Indonesia. When the planned construction of steel plant in Kotabaru is completed all of our iron ore production will be used to meet its demand for raw materials to produce steel," he said.

Sriwijaya Air to order 20 B737-800 NGs

Antara News, Friday, October 8, 2010 22:04 WIB

Jakarta (ANTARA News) - Sriwijaya Air on Friday confirmed it is planning to order 20 B737-800NG aircraft for expansion and modernization of its fleet.

"We have not canceled the plan. We already told the public about it, so how could we cancel it," the company`s commercial director, Toto Nursatyo, said.

He said the 20 aircraft would all be newly-produced and a memorandum of understanding on their purchase from Boeing would be signed in Seattle, USA, by Sriwijaya president director Hendry Lie and two company commissioners, namely Fandy Lingga and Capt Sunaryo Yosopratomo, and financial vice director Jefferson Jauwena.

"Delivery is expected to be done in 2012-2013 at the earliest. Each plane will cost around US%70-75 million," he said.

Toto said with the new type of aircraft it was hoped optimalization of operations and efficiency could be done.

"This will also meet the offer of the transportation ministry`s Directorate of Air Transportation to participate in providing 4,000 seats to Australia which will be released to the flight service market in 2011," he said.

Sriwijaya spokesperson Ruth Hanna Simatupang also confirmed the plan. "The delegation is scheduled to leave for Seattle on October 10 or on Sunday," she said.

Sriwijaya Air has so far been known as operator of B737-200 aircraft which is noisy and fuel guzzling, reaching 13 units.It also operates eight units of B737-300 and six units of B737-400.

The company serves 171 flights a day to 35 destinations including two regional destinations namely Malaysia and Singapore.

Toto once said the regulation in the country still allows the operation of those aircraft.

"The expiration of aircraft in Indonesia is 30 years or 70,000 cycles," he said.

He said the 13 units of aircraft operated by his company were not as yet affected by the regulation.

However, he said, the company plans to take B737-200 out of its fleet as of next year in stages. "In the world around 1,200 units of aircraft of the type are still operating," he said.

Lion Air builds US$40 M hangar in Manado

Antara News, Friday, October 8, 2010 21:58 WIB

Jakarta (ANTARA News) - Indonesia`s largest private airline companies, Lion Air, is building a hangar complete with maintenance, repair and overhaul facilities worth US$40 million in Manado, North Sulawesi.

"The hangar is intended to become a center of maintenance, repair and overhaul (MRO) services," the company`s director of general affairs, Edward Sirait, said here on Friday.

The laying of the corner stone to mark its construction had been done on Thursday (Oct 7, 2010) by North Sulawesi governor Sinyo Harry Sarundajang and the company`s president director, Rusdi Kirana.

Edward said initially the facility would only be used internally for maintaining the company`s aircraft which is now at 64 but will increase to 178 following the delivery of B737-900ER the company has ordered.

"Nine months after the start of its construction yesterday the hangar would be completed with other facilities such as an engine shop, a cabin repair shop, an avionic shop, a non-destructive test shop,a hydraulic component shop, a wheel brake shop and ground support equipment on the ground floor while the second floor would be used for an office an employee guest house," he said.

Initially the project would be on a 12-hectare plot of land and the facility would be capable of accommodating two Boeing 737-900ERs.

"More land would certainly be needed in line with its development later," he said.

Edward predicted following its development at least 600 certified personnel with certain expertise would be employed there supported by up to 1000 workers.

"The market potential is big not only domestically but also regionally including East Asia such as Japan," he said.

With regard to human resources he said the company had already trained dozens of technicians in Surabaya, Bandung and Jakara.

In its press statement earlier the company said it was time for the company to have an MRO facility of its own in line with its increasing operations.

At present it serves 390 flights across Indonesia a day carrying 62,000 passengers. It said the number of passengers is expected to reach 20 million this year.

This means, Edward said, a hangar is urgently needed to meet the development of national aviation industry.

He said the facility would cut cost of maintenance, increase employement, tax revenue, manpower`s capability in maintenance service and reliability, security and safety of the company`s aircraft.

Pertamina takeover plan confirmed

Nani Afrida, The Jakarta Post, Jakarta | Fri, 10/08/2010 10:00 AM

The government confirmed Thursday that Pertamina planned to acquire a majority stake in PT Medco Energi Internasional although the state oil and gas company has not issued an official statement on the plan.

State-Owned Enterprises Minister Mustafa Abubakar said that the state oil and gas company would take over the stake currently held by PT Encore Energy — a company owned by prominent Indonesian conglomerate Arifin Panigoro — through Pertamina subsidiary PT Pertamina Hulu Energy (PHE).

“The acquisition is now under negotiation,” he told reporters .

The minister said that the acquisition was part of PHE’s expansion program to further strengthen its oil and gas exploration and production operations.

Although Pertamina has not yet publicly announced the acquisition, Mustafa said that the state oil and gas company had reported the plan to his office and he expected negotiations would be completed before the end of the year.

Medco Energi was the first Indonesian company to operate in the oil and gas sector and has been listed on Jakarta Stock Exchange since 1994.

It has transformed itself from locally-focused company to an energy company operating throughout Indonesia and overseas, as well, with focus on oil and gas, power generation and renewable fuels.

According to the company’s 2009 financial report, Arifin’s Encore, which owns a 42.41 percent stake, is the single majority shareholder.

The public holds a 40.8 percent stake and is the second largest shareholder.

According to Bisnis Indonesia daily, Pertamina would acquire 46.41 percent stake in Medco.

Over the last three months, the firms have negotiated several cooperation agreements governing joint operations and mergers and acquisitions.

The takeover might cost Pertamina Rp 6.5 trillion (US$728 million), according to estimates.

On the acquisition, Medco Energi Internasional project director Lukman Mahfoedz declined to comment, saying that the company had not determined yet how great stake would be acquired by PHE.

“The decision will be in the hands of our company’s shareholders. I can’t comment,” he said as quoted by Bisnis Indonesia.

Pertamina corporate communications vice president Mochammad Harun said that the companies had not yet reached any agreement on the acquisition, nor on the percentage of shares to be acquired.

“When we have finished or closed the deal, we will inform the public,” he said as quoted by Republika online news portal.

Mochammad said that there were still processes that had to be completed before the company could acquire the stake officially.

He added that the company was conducting currently a study to determine which of Medco’s physical facilities could be synergized with Pertamina.

“We don’t have any deadline, because if we’re too hurried, the process can’t be optimized,” he said.

Earlier reports said that PHE postponed its initial public offering (IPO) plan this year due to the acquisition.

Medco Energi booked total revenues of $397.09 million in the first half of 2010, up 27.67 percent from $311.03 million in the same period last year.

Net profits rose 26.2 percent to $12.1 million in the first half, up from $9.6 million in the same period last year.

Revenues from oil and gas sales contributed $258.55 million to the total revenue from January to June while contracts and services provided $56.79 million, electricity and related businesses such as petroleum products contributed $30.24 million and $51.51 million, respectively. (rdf)

President sends Rp2 billion worth of logistics to Wasior

Antara News, Wednesday, October 6, 2010 21:25 WIB

Jakarta (ANTARA News) - President Susilo Bambang Yudhoyono has sent logistical supplies worth Rp2 billion to wasior, West Papua, to alleviate the suffering of flood victims there.

"The President has sent aid to the flood victims," Coordinating Minister for People`s Welfare Agung Laksono said here on Wednesday.

Agung said the President was very concerned about the disaster and therefore had sent the aid.

The aid consists of clothes, blankets, medicines, food, mats, milk for under five children and other things.

"If all goes well the aid is expected to arrive in Wasior on Thursday," he said.

Agung said the President had asked all the ministries concerned to monitor developments in Wasior and take emergency response actions.

"I have been asked to keep coordinating the ministries concerned with the problem. The President said all ministries concerned must pay special attention to the victims and evacuees," he said.

He said according to the latest reports a total of 64 people had died and 91 were seriously wounded in the disaster.

Meanwhile, 68 people were lightly injured and 451 were still missing, he said.

He said 3,000 people had sought refuge in various places such as in Manokwari and Nabire.

Thirty-one houses had been heavily damaged and health facilities, schools, roads, bridges and a hotel had also been damaged.

"The Wasior airstrip is still inundated and cannot be used for landing and therefore my flight to Wasior has been postponed," he said.

He said the National Disaster Control Agency had sent three units of platoon tents, 80 family tents, 200 roll tents, 60 emergency beds, 500 pieces of clothes, 150 packages of baby and children supplies, 100 mats, 2,250 packages of instant food and 2,500 kilograms of medical supplies.

Heavy rains have fallen in the region from Sunday to Monday. Those who died in the disaster were likely because they had been sunk after being carried away by the flood that also carried with it logs and rocks from a lake in the mountain.

Operators claim major upgrade of pipe networks

The Jakarta Post, Jakarta | Wed, 10/06/2010 11:44 AM

The two tap water operators that serve Jakarta, PT PAM Lyonaise Jaya (Palyja) and PT Aetra Air Jakarta (Aetra), have announced they have completed major improvements to their infrastructure since they were established in 1998, claiming improved water quality, coverage and pressure.

Palyja, which serves the west side of Jakarta, says it has built 1,200 kilometers of new pipes and restored 850 kilometers of its existing 5,200 kilometers of pipes at a total cost of Rp 1.35 trillion (US$151.2 million) since 1998.

Palyja public relations manager Meyritha Maryanie said a further 3,000 kilometers of pipes needed to be restored.

The company booked a net profit of Rp 222 billion last year, up from Rp 136 billion in 2008.

“We realize that under such conditions, we won’t be able to supply enough water for the areas on the west side of the city but we have done what we can, especially amid a lack of water resources and also a lack of awareness among residents,” Meyritha told The Jakarta Post.

She said that her company drew the majority of its water from the Jatiluhur resevoir in West Java and another reservoir in Tangerang.

“We are planning to use water from the Pesanggrahan river as it often overflows during the rainy season. However we are still checking the quality of the water and negotiating with the authorities,” she said.

Palyja and Aetra have held the exclusive rights to manage the city’s tap water since 1998.

Aetra, then PT Thames PAM Jaya, has built 1,451 kilometers of new pipes to add to the 4,400 kilometers of pipes that it already had. Aetra serves residents on the east side of Jakarta.

Aetra general manager Agit Pratomo said the company was focused on allocating more money to expand its pipe network and build new pumps to increase water pressure this year.

“We understand that many of our customers have complained about our supply so we are allocating

Rp 300 billion to build 232 kilometers of pipes and two pressure pumps,” he said.

He said his company usually only spent an average of about Rp 120 billion per year on infrastructure

upgrades.

“We hope that private companies will become more aware of the need to use tap water in accordance with the 2007 bylaw,” he added, refering to a bylaw that stipulates that commercial and industrial buildings that tap into the ground water must pay taxes that are more costly than paying for tap water.

The companies do not produce enough tap water to meet demand. They are running at an estimated combined defecit of 4,000 liters of water per second this year, based on the assumption that the population of the city is growing at a rate of up to 0.3 percent per year.

In fact, the Jakarta Statistics Agency (BPS) recently announced that the population growth had reached 1.3 percent per year.

Earlier, experts said that almost all commercial buildings in the city used groundwater because of the lack in supply and coverage of tap water in the city. (rch)

Banyan Tree Bintan hotel released sea turtle hatchlings to sea

Antara News, Tuesday, October 5, 2010 01:54 WIB

Tanjungpinang, Riau Islands (ANTARA News) - A number of sea turtle hatchlings found their way to the open sea as released by the Banyan Tree Bintan Resort and Hotel of Riau Islands at Lagoi Beach, Bintan witnessed by hundreds of foreign tourists on Sunday evening.

"This campaign was conducted to preserve the ecosystem balance and to save the hawksbill turtle (Eretmochelys imbricata) from extinction," the Corporate Social Responsibility Manager of Banyan Tree Bintan Resort and Hotel, Henry Ali Singer said here Monday.

"There were still 220 sea turtle eggs estimated to hatch in the mid-October 2010 in the hatchery," he said.

The last four months, banyan Tree Bintan had released 364 sea turtle hatchlings originated from eggs collected from Panjang Beach, Lagoi tourism spot in the nesting time in March-September, he said.

The Manager of Banyan Tree Bintan, Herman Puspa released the first hatchling to the sea witnessed by hundreds of enthusiastic foreign tourists, especially children.

The tourists documented the struggle of the hatchlings to reach the open sea from the shoreline.

The crowd was getting louder to encourage the hatchlings to reach the sea creating a blithe atmosphere in the campaign.

"The tourists were pleased to witness this rare moment. It was the first experience for most of the tourists, especially kids, and they will show their documentations of the rare occasion to their relatives and friends back in their countries," Henry said.

Each of the hatchling weigh around 15 gram at the day it born, much lighter than the egg itself that weigh 25 gram, he said, adding that the turtle eggs were buried 50 cm deep in sand until they hatch 50-60 days afterward.

A sea turtle could lay 150 eggs at a time in the nesting time, but it takes around 30 years and even decades for sea turtle to reach sexual maturity, he said.

According to the research, only one percent of the hatchlings could survive in the ocean, he said.

However, the management relocated the sea turtle eggs from the natural nesting ground to secure them from human threat as some people consume the eggs and sell them in the market.

"Some animals such as wild hogs and monitor lizards like to eat sea turtles," he said.

Anti-corruption Teaching Materials At Indonesian Schools

Antara News, Tuesday, October 5, 2010 01:51 WIB

Sidoarjo, E Java (ANTARA News) - Education Minister Muhammad Nuh said anti-corruption teaching materials would have officially been taught at Indonesian schools by 2011.

Speaking to newsmen here Sunday, he said these anti-corruption teaching materials were not taught in a special subject but would be inserted into all subjects.

"These anti-corruption teaching materials are like oxygen. They are badly needed though they are not observable. They will exist in all subjects, including mathematics, history, and physics," he said.

Muhammad Nuh said corruption was mainly related to two causing factors, namely human and system.

"Therefore, we must enable our children or our students to avoid any act of corruption since their early ages and save them from the corruption culture," he said.

In the educational field, the facts of corruption culture were noticeable, such as the bad habits of asking friends to do classroom absentees or write theses for their favors, he said.

"All these bad things must be eradicated from our educational life. May the anti-corruption teaching materials will help our generation get rid themselves of corruption and combat it," he said.

Considering the great impacts of corruption on a country, it has then been perceived as an unforgivable extradordinary crime by Nahdlatul Ulama (NU) advisory council leader KH Masdar Farid Mas`udi.

"The impacts of corruption on a country are so extraordinary. Corruption is a big crime that can threaten a country`s life," Mas`udi recently said.

Muhammadiyah Chairman Din Syamsuddin had even urged the government not to give remissions or pardon to convicted corruptors.

"The government must be sensitive to and consider its people`s sufferings. Don`t hurt the people`s sense of justice," he said in response to the release of some convicted corruptors.

The Indonesian people consider corruption as an extraordinary crime against the state and nation.

One of the convicted corruptors who had enjoyed a remission and pardon from the Indonesian president was Syaukani Hassan Rais.

The ailing former head of Kutai Kertanegara district, East Kalimantan Province, had been released.

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Taiwan delegation wins US$36m in Indonesian orders

Taipei Times, Staff writer, with CNA, Mon, Oct 4, 2010 

A trade and investment delegation led by Minister of Economic Affairs Shih Yen-shiang (施顏祥) won US$36 million in orders in Indonesia during a three-day visit, the Ministry of Economic Affairs said on Saturday.

The delegation, which returned to Taipei earlier in the day, held several business seminars during the visit, attracting about 1,200 potential buyers, the ministry said.

The delegation was comprised of more than 150 representatives from about 100 major Taiwanese companies, including Teco Group (東元集團), Winbond Electronics Corp (旺宏電子), CPC Corp, Taiwan (台灣中油), Tainan Enterprises Co (台南企業) and Taiwan Sugar Corp (台糖).

Biggest group

The ministry said the delegation was the largest trade and investment group from Taiwan to visit the Southeast Asian country, showing that Taiwan’s business sector values the Indonesian market.

Shih met with Gita Wirjawan, head of Indonesia’s Coordinating Investment Board, while the other delegates visited industrial zones looking for business opportunities.

Packed with natural resources and a huge population, Indonesia has become one of the most important markets in Southeast Asia, the ministry said.

Room for growth

The ministry said there was room for Taiwan and Indonesia to work together economically, especially now that Taiwan and China have signed the Economic Cooperation Framework Agreement (ECFA).

Indonesia and Taiwan can complement each other in industrial development because Taiwan is strong in information technology, machinery and auto components, while Indonesia has an edge in oil, natural gas, timber, rubber and textiles, it said.

Taiwan’s accumulated investments in Indonesia total US$13.95 billion, according to the ministry’s data.

Unicef extends $5 million for post-quake efforts in Sumatra

Antara News, Sunday, October 3, 2010 01:51 WIB

Bogor, W Java (ANTARA News) - The United Nations Children`s Fund (UNICEF) has provided US$5 million in aid to finance post-quake rehabilitation and construction efforts in West Sumatra.

"In the past year we extended Rp45 billion ($5 million) in aid to mitigate the impact of the Sumatra quake," UNICEF spokesperson Lely Djuhari said in an e-mailed statement on Saturday.

An earthquake measuring 7.9 on the Richter scale rocked the western coast of Sumatra Island on September 30 last year, killing at least 1,117 people, one-third of them children.

The quake also injured tens of thousands of people and destroyed hundreds of buildings particularly in the West Sumatra provincial capital of Padang and neighboring Padang Pariaman district.

An estimated 1.4 million people, including 700,000 children had been affected by the quake. They had lost their wealth and access to clean water.

A few hours after the quake struck the region, the government launched a one-month emergency response period. UNICEF was committed to supporting the program for six months to meet women and children`s urgent needs and strengthen alertness capacity.

The government has so far allocated more than US$333 million in funds to the post-quake reconstruction efforts in the region.

Japan assists SMP 25 Padang rebuilding

Antara News, Saturday, October 2, 2010 10:53 WIB

Padang, West Sumatra (ANTARA News) - The Japanese government through its embassy in Jakarta is providing a grant assistance for the rebuilding of SMPN-25 senior high school which was damaged by a strong earthquake in September 2009.

The handing of the assistance was marked by the cornerstone laying of the school rebuilding by Japanese Ambassador to Indonesia Kokiro Shiojori.

The ambassador was accompanied by the National Disaster Mitigation Agency (BNPB) deputy Bakri Beck, West Sumatra provincial secretary Muhammad Rivai and Padang Mayor Fauzi Bahar.

Japan consided that education was important so that it assisted the re-construction of Padang`s SMP-25. Japan is assisting the reconstruction of nine damaged schools in Padang and in Padangpariaman district with a total of 400 million yen," the Japanese ambassador said meanwhile.

"Besides reconstructing nine school building, Japan will also provide knowledge about the prevention of earthquake impact in the form of earthquake-resistant house construction," the ambassador said.

BNPB deputy Bakri Beck said West Sumatra was the best province in post-earthquake rehabilitation and reconstruction work after the 2009 earthquake.

"Therefore, BNPB has allocation a budget of Rp6.7 trillion for rebuilding infrastructure and for financing the reconstruction and rehabilitation works," he said.

South Korea to send investment mission to Indonesia

Alfian, The Jakarta Post, Jakarta | Fri, 10/01/2010 2:21 PM

ASEAN-Korea Centre, an international organization established to promote economic and socio-cultural cooperation between ASEAN countries and Korea, is dispatching an investment mission to Indonesia from Oct. 3 to Oct. 6, 2010 in search for investment opportunities in sectors of ship parts, ship design and construction machinery.

In its press statement sent on Friday, the ASEAN-Korea centre said that the mission would comprise of 20 Korean company representatives and related experts and they would visit various government agencies and local companies in the ship parts, ship design and construction machinery industry sectors and have business meetings with local business.

In Jakarta, the mission members will be informed of the latest investment policies by Ministry of Industry, Indonesia during “Business Forum on Investment Opportunities in the Field of Ship Building Industry and Construction Machinery”, which will be held in cooperation with Indonesia Investment Coordinating Board (BKPM).

On Oct. 6 the mission members will be briefed on the latest investment policies and opportunities by Batam Indonesia Free Zone Authority. Also, they will have business meetings with Indonesian and Singaporean businessmen which are expected to provide an opportunity to better understand local markets and obtain information on investment potentials. In addition, there will be visits to the local companies of ship parts, ship design and construction machinery industries in Batam.

Currently, South Korean has invested in more than 1,000 projects covering various businesses, including electronics, food, construction, chemicals, and airline services. South Korean companies realized investment in Indonesia reached a total of $624.6 million in 2009.

Hyundai Interested in Building a Factory in Indonesia

Tempo Interactive, Thursday, 30 September, 2010 | 17:17 WIB

TEMPO Interactive, Jakarta:Gita Wirjawan, the Investment Coordinating Board (BKPM) chairman, said Hyundai, the car producer from South Korea, had expressed its interest in building a car manufacturing factory in Indonesia. This is one of their investment plans brought up in a discussion with a number of companies in Korea last week.

Gita said the intention was in line with BKPM and the Trade Ministry’s program to promote car manufacturing in Indonesia. “We must accommodate it with a strong logistical basis,” Gita said yesterday. One of the ways was to re-manage logistical inter-modes like railway and roads.

The Korean car producer was very interested in investing in Indonesia because it does not have a manufacturing factory in Southeast Asia. In Indonesia, Hyundai only has one commercial vehicle assembling factory under PT Korindo Motors and another one for non-commercial vehicles.

Jongkie D. Sugiarto, PT Hyundai Mobil Indonesia president director said that because Hyundai does not have a manufacturing plant in the region,Hyundai cannot be exempted from duties, a policy implemented after the ASEAN free trade market. “That is why we are trying hard to offer Hyundai to build its manufacturing factory in Indonesia,” he told Tempo.

So far, Hyundai’s sedan, sports car, and multi-purpose vehicles are subject to a 45 to 60 percent duty. Therefore, the price of Hyundai cars had never been competitive since the beginning, compared to cars getting those facilities.

According to Jongkie, however, the construction of the car manufacturing plant, still depends a lot on improvement of the investment climate. Some investment barriers that must be resolved include the licensing, infrastructure, and political stability.

Gita further said that he was certain that within the next three years, Korea’s investments can reach US$ 10 billion. The target was set following a meeting with many companies there. “They see Indonesia in a positive way,” he said.

A few companies which have invested in Indonesia include a steel company from South Korea, Posco, which has established a joint-venture together with PT Krakatau Steel. In the near future, Hancook tire factory will also invest in Indonesia by building a plant. “Posco is to confirm it will perform a stone-laying ceremony this October,” Gita said.

SUTJI DECILYA | KARTIKA CANDRA