Volcano a no-smoking area

smh.com.au, Will Carless, November 5, 2010 - 5:29AM

Nobody is allowed to smoke in the Sampoerna Rescue camp.

The cluster of leaky, ash-covered canvas tents that has been set up in a muddy field here, on the slopes of erupting Mount Merapi in Central Java, has been designated a smoke-free zone by volunteers and employees of Sampoerna, one of Indonesia's largest tobacco companies.

The camp is one of the only places here in Java, where almost two-thirds of adult males are addicted to cigarettes, and where smoking is tolerated everywhere from airport lounges to children's play parks, that you can't smoke.

The company, which has been owned by Philip Morris since 2005, paid for the camp, the flashy four-wheel drive vehicles parked in front of it, and the cluster of eager staffers wearing natty red and black uniforms covered with company logos.

The team is one of several emergency response efforts organised by large Indonesian corporations in response to the devastating series of eruptions that have so far killed 44 people and displaced more than 77,000 rural residents in the last week.

On Thursday, as the volcano unleashed its biggest explosion yet, killing five more people, the mountainside crawled with expensive ambulances, water purification trucks and four-wheel-drive vehicles, all provided by the companies.

Businesses as diverse as Jakarta-based conglomerate Artha Graha, telecommunications giant Telkomsel and state oil company Pertamina provided the vehicles, which, like the uniforms of the squads of employees who operate them, are typically emblazoned with corporate logos.

Known here as "corporate social responsibility" efforts, the disaster relief teams aim to augment efforts by a stretched Indonesian government to house, clothe and feed evacuees from the volcano.

Representatives of the companies working on the mountain said their efforts are entirely altruistic, and baulked at any suggestion that the aid teams double as a marketing campaign for the companies.

But local residents and evacuees were not so sure.

"Why can't they just do the good stuff, but without the advertising?" asked 18-year-old Anin, who like many Indonesians only uses one name and who was volunteering at an evacuation camp opposite the Sampoerna camp in her home village of Harjobinangung.

"Why can't they just use plain white vehicles or something?"

Earlier this week, police and military officers tore down hundreds of banners and advertisements for political parties that had quickly sprung up on main streets in the evacuation zone.

The removal of the advertisements, which had rankled local residents and evacuees, came after a local official said they had been erected without permits.

Aprilianto, a 31-year-old evacuee from the slopes north of Harjobinagung, said the government should apply the same rules to private companies that have erected banners and tents displaying their corporate logos.

"The companies are taking advantage of the situation, so why should they be treated differently?" Aprilianto said.

Inside one of the Sampoerna tents, Herman Sudjarwo, a general practitioner who usually works in a private hospital in the city of Surabaya in East Java, attended to evacuees in a makeshift clinic.

He said most of the 90 to 100 patients he sees a day are suffering from breathing difficulties attributable to the high levels of volcanic ash and dust that have rained down from the volcano's crater.

Asked whether he sees any irony in a cigarette company providing free medical checkups, Sudjarwo giggled.

"This is to balance it out," he said.

Arief Triastika, a national coordinator for Sampoerna's community development efforts, who has been managing the camp on Merapi, said his company is only interested in providing assistance to people affected by the volcano and is not using the disaster as a promotional opportunity.

Sampoerna maintains three disaster management teams on the island of Java and has dispatched crews of volunteers to disasters all over Indonesia since 2002, Triastika said.

The company has helped provide food, medical equipment and logistical aid to victims of the 2004 Indian Ocean earthquake and tsunami, the 2006 tsunami in West Java, earthquakes in Padang and Yogyakarta and floods across Java in 2010, he said.

Asked if skeptical evacuees have criticised his efforts, Triastika shook his head vigorously.

"At the moment we don't have that criticism. And we keep giving the best we can do for the community," he said.

When employees and volunteers want to smoke at the Sampoerna Rescue camp, they have to leave the tents, even if it is pouring with rain, Triastika said.

The camp is a de facto medical clinic, he said, and therefore must be kept sterile.

Locals eyeing the tents and the Sampoerna banners from an evacuation camp across the street had other ideas about the Sampoerna effort, however.

Asked if he had ever thought to approach the camp volunteers for free cigarettes (the company does not hand out cigarettes), Aprilianto's eyes lit up.

"No," he said as he stubbed out a rival brand's clove cigarette. "Do they do that?"

Norway to give $1.65m to boost women’s role in politics

The Jakarta Post, Jakarta | Thu, 11/04/2010 5:30 PM | World

In an effort to strengthen the status of Indonesian women in politics and enhance their role in democratic governance, the Royal Norwegian Embassy in Jakarta on Thursday signed a cooperation agreement with The Asia Foundation in Indonesia.

“Norway was happy to continue its partnership with Asia Foundation in strengthening the voices and involvement of Indonesian women in politics ,” Norwegian Ambassador to Indonesia Eivind S. Homme said in a press release sent to The Jakarta Post on Thursday.

“Much has been achieved, and we want to be there to offer further support in this progress with women actively taking part in shaping the future of their society and nation”.

Norway will provide US$1.65 million to the activities organized under this cooperation agreement. The agreement was signed by Ambassador Homme and The Asia Foundation representative for Indonesia Robin Bush at the Norwegian Embassy in Jakarta on Thursday.

The three-year program, according to the press release, will focus on achieving increased capacity of women lawmakers at national level and in Aceh, East Java and South Sulawesi provinces. -- JP

Three New Fertilizer Plants To Cover Domestic Demand

Jakarta Globe, Faisal Maliki Baskoro | November 03, 2010

Jakarta. State-owned fertilizer companies Pupuk Sriwijaya (Pusri) and Pupuk Kaltim (PKT) signed an agreement today to enter into a joint venture with Jordan Phosphate Mines to build three fertilizer factories in Indonesia in a deal worth $900 million.

Arifin Tasrif, president director of state-owned fertilizer company Petrokimia Gresik and chairman of the Indonesian Fertilizer Producers Association (APPI) said the joint venture would fill a gap in a domestic fertilizer market that was expected to demand eight million metric tons per year by 2025.

He said the three factories would each be capable of producing one million metric tons of NPK (nitrogen, phosphorous and potassium) fertilizer each year.

“Once these factories start operating in 2015 it will add three million tons to Pusri’s current capacity of 2.2 million tons, matching fertilizer demand in that year,” Arifin said.

“These factories will also meet the demands of 40 million farmers in Indonesia.”

He said the first factory, planned for Gresik, East Java, was expected to be operational in 30 months, while the other two, to be located in Tanjung Siapi-api, South Sumatra, and Bontang in East Kalimantan, were expected to be completed by 2015.

The Pusri-PKT partnership and Jordan Phosphate will each have a 50 percent stake in the company.

Thirty percent of the venture’s financing would come out of the companies’ equity and the rest from bank loans, Arifin said.

The deal is also a positive development for the fertilizer industry as a whole, which needs $6.2 billion from the private sector to upgrade aging factories, he said.

Mustafa Abubakar, the state enterprises minister, said that with the joint venture, Pusri could become the world’s biggest fertilizer company by 2015.

“We will export some to the Philippines, Malaysia and Vietnam.”

Walid Kurdi, chairman of Jordan Phosphates, said this was the first time his company had entered into a joint venture with a company outside of Jordan.

“We’re comfortable investing here. We trust investing here more than anywhere else as it offers facilities for investors’ protection and it is a potential market,” he said.

Petrokimia Gresik signed a joint venture agreement in January with Jordan Phosphate to build a $200 million fertilizer plant in East Java.

The factory is expected to have a production capacity of 200,000 tons annually.

Jordan Phosphate operates three mines in Jordan, where the government owns 26 percent of the company.

Kamil Holding, an investment company owned by the Brunei Sultanate, has a 37 percent stake.

Obama Set to Reveal $700m Indonesian Forest Funding

Jakarta Globe, Fidelis E. Satriastanti & Reuters | November 03, 2010

Jakarta. US President Barack Obama is expected to use his brief visit to Indonesia next week to announce hundreds of millions of dollars in funding to help the nation tackle climate change, a senior official said on Wednesday.

US President Barack Obama, seen in this file photo,
is expected to make an announcement vowing
hundreds of millions of dollars to help Indonesia tackle
climate change when he visits the country.
(AP Photo/Alex Brandon)

Obama, who is scheduled to visit the country on November 9, is likely to announce $700 million for the Millennium Challenge Corporation, a development fund formed under the Bush administration.

The foreign aid fund, which provides poorer countries with large grants to fund domestic poverty reduction through sustainable economic growth, can also include funding for climate change and forest conservation.

Indonesia’s forests and seas are widely expected to be at the heart of coming efforts to boost ties between Washington and Jakarta and to step up the fight against climate change, officials and other sources said.

Agus Purnomo, a presidential staffer focusing on climate change, said that if Obama did publicly announce the funding commitment, it would mark the country’s first concrete action to contribute to Indonesia’s battle against climate change and would affirm Washington’s seriousness in contributing to the issue.

“The US and Norway had each made a pledge for $1 billion dollars in fast-track funding committed in the Copenhagen Accord, but for a year the US side has not acted. No numbers [for climate change funding] at all,” he said.

Indonesia has some of the world’s most complex and diverse forests but also one of the highest deforestation rates.

Saving them from illegal logging and unsustainable clearing for agriculture and mining could help the country meet its goals to cut greenhouse emissions — the third-highest globally according to the World Bank, taking into account deforestation and land use.

It would also help the United States in its goal to fight climate change, and help Indonesia become a source of tradeable forest carbon offsets that would help polluting US industries meet future targets to cut emissions.

Although Agus said he was not sure about the funds that would be committed, he estimated that the country could get $200 million from the MCC and maybe another $200 million from another, unspecified fund.

Meanwhile, Teguh Surya, head of advocacy at the Indonesian Forum for the Environment (Walhi), said the funding commitment should wait until Indonesia was ready to manage the money.

“Obama’s good intention should be appreciated; however, we still don’t have any clear mechanism to manage this money. It would be open to misuse,” Teguh said.

He added that what the country needed most was funding for climate change adaptations — such as weather early warning systems for fishermen — rather than mitigation efforts.

Furthermore, he said, Yudhoyono should push the United States for radical emissions reductions of its own, to show that US funding was not simply a way of preparing Indonesia to enter the carbon market.

The visit could also reveal details about implementing a four-year program worth up to $40 million to fight deforestation, reduce the loss of biodiversity and improve land management.

That scheme was announced earlier this year.

Details may also emerge of a further $20 million for marine conservation, a source said, while steps to promote clean energy development could also be announced.

The United States has an interest in protecting Indonesia’s forests not just because of the valuable role they play sucking greenhouse gases out of the air, but also as a key part of a potential future forest offsets trading industry, observers say.

“They are trying to find a way to protect their future offsets but they have also seen how important Indonesian forests are for the global climate crisis,” said Jakarta-based Greenpeace forest campaigner Bustar Maitar.

Japan Offers “Green Funding” Worth US$50 Million

Tempo Interactive, Wednesday, 03 November, 2010 | 17:50 WIB

TEMPO Interactive, Jakarta:The Japan Bank for International Cooperation (JBIC) is offering “green funding” for environmentally-friendly private-sector projects. JBIC will provide a total of US$50 million.

“We are still discussing the details with the Indonesian government,” JBIC Executive Director Fumio Hoshi told Tempo in Jakarta yesterday. Hoshi said JBIC is offering the program to many countries, including Indonesia.

The JBIC fund is aimed at developing green economic growth. As such, there are some requirements to obtain the funding. The green funding is different from that of REDD or the Oslo Moratorium, which is focused on carbon trading, although they share the same vision.

Japan is ready to disburse US$14 billion for the project worldwide. Japan will allocate the funds within the next three years. “Some projects began this year,” Hoshi said.

Arianto Patunru, the University of Indonesia’s Economic and Community Research Institute (LPEM) director, said JBIC will provide more funding for projects which focus on sustainable, low carbon emissions.

Green growth can be seen from the wide opportunities available for alternative energy projects, as well as in the lowering of energy subsidies and dependence on fossil fuel.

Senior economist and environmental activist Emil Salim said Indonesia has to face three challenges within the next few years and they can all be handled with green growth, namely climate change, biodiversity erosion and the achievement of the Millennium Development Goals.

ANTON WILLIAM

PLN provides solar power generators for Mentawai

Antara News, Wednesday, November 3, 2010 21:11 WIB

Padang, W Sumatra (ANTARA News) - State-owned power utility company PLN provided 60 sets of solar power generators (PLTS) for the victims of earthquake and its subsequent tsunami disasters in Mentawai Islands, West Sumatra, a PLN official said.

"The 60 sets of PLTS will be sent to the evacuation centers to provide the victims with lighting," PLN Operation Director for Western Indonesia Harry Jaya Pahlawan said here on Wednesday.

He said that one set of PLTS consisted of three 100 watt lamps and one solar panel. "Each PLTS is able to turn on a 300 watt lamp and could last for 6 to 8 hours," he said.

Harry said that the PLTS were badly needed by the disaster`s survivors which were not staying at refugee camps. After all the power generators (PLTG) network in Sikakap subdistrict, Mentawai district, had not yet functioned.

On October 25, 2010, a magnitude-7.2 earthquake and a subsequent tsunami hit the Mentawai Islands district, West Sumatra, killing at least 408 people and caused no less than 303 others to go missing.

A total of 270 people are seriously injured and 142 lightly injured in the disaster. The 7.2 magnitude temblor and the tsunami devastated 517 buildings and cast minor damage to 204 buildings.

A total of 22,595 residents of the total 26,004 dwelling in Bumi Sikkerei were reported to be evacuated in safe places.

Govt to make reconstruction blueprints for disaster-hit regions

Antara News, Tuesday, November 2, 2010

Jakarta (ANTARA News) - The government will draw up blueprints for the reconstruction of the disaster-hit regions of Wasior, Mount Merapi and Mentawai islands, a coordinating minister has said.

"We anticipate that funding for the reconstruction of the areas hit by natural disasters will come from various sources, both internal and from foreign assistance," Coordinating Minister for People`s Welfare Agung Laksono said, here on Tuesday.

The minister said the government would prepare the blueprints for the reconstruction works in those areas very soon, something that he expects the public will support because the project will not be workable without the expected support and assistance.

He revealed that the Indonesia government had been notified of expression for support from friendly countries to help with the reconstruction works in the disaster-hit regions. "We appreciate the support and pledges of assistance from those countries," Agung said.

Agung also said the government would also like to say thanks for the assistance and contributions given by various elements of Indonesian society to the disaster mitigation efforts in the disaster-hit regions.

Wasior in West Papua was devastated by a giant flash flood that killed more than 160 people on October 4, 2010.

On October 25, a tsunami triggered by a magnitude-7.7 earthquake engulfed the Mentawai islands off the coast of West Sumatra killing 430 people and making some 15,000 people homeless.

Mount Merapi in Magelang district, Central Java, erupted five times since October 26, spewing hot clouds 1.5 km into the air and sending lava down its many slopes. The lives of 39 people were lost, and the homes of about 70,000 others were destroyed.

Governor Orders Construction of Bamboo Shacks for Conjugal Visits for Volcano Victims

Jakarta Globe | November 02, 2010

Jakarta. Yogyakarta Governor Sri Sultan Hamengkubuwono X has ordered the construction of bamboo shelters for families displaced by the Merapi volcano disaster to allow for privacy, including for married couples who wish to engage in sexual activity.

Merapi evacuees having a meal at a shelter.
Yogyakarta Governor Sri Sultan Hamengkubuwono X
planned to build one shelter for one refugee family
to provide privacy. (Antara Photo)

“[On Monday] we received an instruction from the governor to build each family a shelter,” Sleman district deputy head deputy Yuni Rahayu told Detik.com. “The special shelter is necessary so children can study and husbands and wives can conduct their sexual activities in private.”

With predictions the eruptions could continue for months and that the rebuilding process for those who lost homes even longer, Yuni said the shelters would need to accommodate 13,000 refugees.

He said the three x four meter structures would be manufactured from bamboo.

All natural: The Green School in Bali features bamboo construction engineered into a more modern look. JP/ Zul Trio Anggono

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Govt to rebuild houses destroyed in Mt Merapi eruptions

US pledges $2 mln to assist RI`s disaster victims

Antara News, Friday, October 29, 2010

Jakarta (ANTARA News) - The US government has pledged US$2 million in aid to assist the victims of a tsunami in Mentawai islands and Mount Merapi`s eruption in Central Java.

The US government was deeply concerned about a string of natural disasters engulfing Indonesia, US Ambassador to Indonesia Scot Marciel said on Friday.

"For the sake of humanity, we want to assist Indonesia. America is Indonesia`s friend. We very much care about what has happened in Indonesia," Marciel said.

A tsunami triggered by a 7.2 magnitude earthquake devastated the Mentawai islands off the western coast of Sumatra on Monday night. Official figure put the death toll in the tsunami at 394 as of Friday morning, while 312 others are still missing.

The tsunami also injured at least 267 people and forced the evacuation of 12,865 others.

The West Sumatra Provincial Disaster Mitigation Board said on Thursday the tsunami also destroyed four elementary school buildings, one junior high school building, four churches, 426 houses, and 10 bridges, while more than 200 houses had minor damage.

Meanwhile, Mount Merapi which erupted on Tuesday has killed 34 people and seriously injured 10 others.

The world`s most active volcano erupted again at around 04.00 p.m. on Thursday, spewing hot clouds of ash down its slopes.

A total of 17,776 people in Sleman district, Yogyakarta, and 13,757 people in Magelang district, Central Java, have so far evacuated to safer places following the eruption.

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Friendly countries allowed to help reconstruct Mentawai

Mayors share ideas on good governance

The Jakarta Post, Jakarta | Fri, 10/29/2010 11:05 AM

Anticorruption award-winning mayors shared ideas on key strategies to bring about good governance in their respective administrations throughout their ground-breaking tenure at the Bung Hatta Anticorruption Award 2010.

The awards were officially handed to Yogyakarta Mayor Herry Zudianto and Surakarta Mayor Joko Widodo on Thursday night in a ceremony attended by well-respected figures — including academics, activists and the media — concerned with corruption eradication.

The judges chose the two over 36 other candidates.

Herry, however, asked that his award to be bestowed to his administration, saying that the achievement would not have been possible without all the civil servants in his office.

“Good governance in Indonesia is like a rolling snowball: it can’t be stopped,” he said. “The paradigm shift can come from outside forces, or it can come from our willingness to change.”

Some of the novel systems that Herry has implemented in his administration include a one-stop licensing agency in which one office handles all administration procedures and the information and complaint service unit through which Yogyakarta residents voice their aspirations.

Herry added that he viewed leadership not as an avowal of social position, but as a sharing of responsibility with his colleagues.

“I consider myself more as the head of services in Yogyakarta rather than a mayor,” he said, adding that he nurtured his spirit of service during his previous profession as a batik entrepreneur.

Joko, who was a furniture entrepreneur before assuming office, said that he too implemented lessons learnt during his previous profession in his administration.

He stated that in his 21 years of dealing with foreign customers, he learnt the importance of quality, timeliness and finances, which he implemented by strengthening small-scale enterprises in Surakarta.

Joko is lauded for his success in the peaceful relocation of 5,817 street vendors and the establishment of 15 markets in his five years in office.

Clear-cut communication detailing the benefits of relocation overcame the vendors’ fears, he said.

“I apply the same method of communication with fellow politicians. I talk to them and provide them with detailed explanations of my concept,” he said.

Natalia Subagjo, one of the founders of the foundation giving out the award, which was established in 2003, said bureaucratic reforms were the focus of this year’s award.

“It was not easy to fund non-corrupt individuals in this country,” she said. “But it wasn’t impossible since there are still many individuals who hold onto their integrity and remain unaffected by the habits of those around them. Instead, they are the ones who influence their surroundings.” (gzl)

European Commission provides €1.5 million for Indonesia twin disasters survivors

The Jakarta Post, Jakarta | Thu, 10/28/2010

The European Commission has allocated €1.5 million (US$2 million) in humanitarian assistance to survivors of the tsunami in Mentawai and the volcanic eruption of Mount Merapi in Java, EU Delegation to Indonesia, Julian Wilson said in a statement Thursday.

The funds will help around 65,000 people in Mentawai and at least 22,000 people in Yogyakarta or Central Java.

The funding will be channelled through the European Commission Humanitarian Aid and Civil Protection department (ECHO).

“We extend our condolences to those who have lost loved ones in these two natural disasters,” Wilson stated.

“The European Commission is providing this initial emergency assistance which will help alleviate the suffering of the survivors and the EU will continue to stand by its Indonesian partners in this time of need.”

A tsunami hit several islands of Mentawi in West Sumatra killing at least 343 people on Monday. The number is likely to climb higher because hundreds of missing people may have been swept away.

In Yogyakarta, the Mount Merapi volcanic eruption killed at least 33 people on Tuesday, forcing thousands to evacuate from the mountain slopes.

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Australia supports better urban sanitation in Indonesia

Antara News, Tuesday, October 26, 2010 11:04 WIB

Jakarta (ANTARA News) - Indonesians in 22 cities will soon have access to better sanitation facilities thanks to support from Australia that will help local governments improve their sanitation programs, according to a media release from the Australian Embassy here on Tuesday.

Heads of the 22 district governments gathered in Jakarta on Tuesday to sign agreements for grants provided by Australia totalling A$6 million. These grants will allow the governments to invest in urban wastewater sewerage and treatment; connections to sewerage systems; communal septic tanks; public toilets; solid waste collection services; and solid waste recycle and reuse facilities.

AusAID`s Infrastructure Counsellor, Ben Power, said the project rewards district governments that have demonstrated a strong commitment to better sanitation infrastructure.

"Helping Indonesia improve sanitation is a key priority for Australia,"Power said.

"We are proud to be involved in a project that focuses on poor urban households and that will lead to better health and safer environments."

Through the new agreements district governments will have access to grants from Australia ranging from IDR 500 million to IDR 4.8 billion. The size of the grant will be determined by how much the district governments allocate for sanitation in their 2010 budgets.

The 22 cities to receive grants are: Probolinggo, Jombang, Purworejo, Yogyakarta, Solok, Deli Serdang, Makassar, Banjarmasin, Malang, Tegal, Cimahi, Jambi, Banda Aceh, Medan, Bukit Tinggi, Pekanbaru, Pekalongan, Blitar, Batu, Ambon, Jayapura, and Denpasar.

Australia is committed to helping Indonesia make faster progress towards achieving the Millennium Development Goal to increase access to clean water and better sanitation.

Japan readies $52.9b for first corridor

The Jakarta Post, Jakarta | Sat, 10/23/2010 12:27 PM

Japan has earmarked US$52.9 billion to help Indonesia finance projects in the first of six economic corridors intended to sustain the flow of goods in the country and in the Southeast Asia region.

“It may even be increased to $60 billion if needed,” Coordinating Economic Minister Hatta Rajasa told reporters on Friday. The agreement was reached during his recent visit to Japan.

The economic corridors are defined as six economic development highways, mostly located along coastlines, which would connect centers of economic growth in five islands: Java, Sumatra, Kalimantan, Sulawesi and Papua.

Hatta said the first economic corridor, spreading along the east coast of Sumatra to the western part of Java, including Greater Jakarta and Banten, would comprise a total of 44 projects to be developed in two phases 14 projects in the period 2010-2014 and 30 projects in 2015-2025.

Hatta said the projects on the corridor would be developed using various financing schemes.

“Those projects may be financed purely by private sector or using the public-private partnership scheme,” he said, while mentioning coal fire power plants and railway transportations as two of projects would be financed by private sector

According to the Investment Coordinating Board (BKPM), five prioritized projects worth US$4.44 billion are ready to be offered to investors now: The Soekarno-Hatta Airport - Manggarai railway track ($735 million), the Tanah Ampo cruise terminal in Bali ($30 million), the Medan-Kualanamu tollroad in North Sumatra ($475 million), the Umbulan tapwater plant in Pasuruan, East Java ($200 million), and a large 3,000 MW coal-fired power plant in Central Java ($3 billion).

Vice President Boediono has declared those five projects as pioneer projects under the PPP scheme.

Hatta said a strong economic growth engine driven by strong export and investment flows had made Indonesia’s economy more stable.

“We have quite strong macro economy fundamentals,” he said.

However, he said, Indonesia should put more effort into infrastructure development.

“With rapid infrastructure development, we will have faster economic growth,” he said, adding that Indonesia should better promote the development of infrastructure and of the real sector.

The 14 projects proposed for the first phase of development in the first corridor are already listed and will comprise ports, bridges, and toll road developments.

These will include the renovation of the Dumai port in Riau province, the expansion of the Lampung-Panjang road in Lampung province, the developments of coal-fired power plants, provision of road infrastructure for mines and electricity infrastructure in North Sumatra, the renovation of Soekarno Hatta airport, the development of the long-awaited Manggarai-Soekarno Hatta railway, the development of the Lahat-Kertapati coal railway, the development of another coal railway in South Sumatra, the development of the Medan-Binjai toll road, the development of Kuala Namu airport in North Sumatra, the development of the Pekan Baru-Kandis toll road, the development of the 400-kilometer Medan-Pekanbaru road, and the development of the Belawan shipping line in North Sumatra.

Hatta said he would complete the master plan for the six corridors in three months as requested by the president. (ebf)

Dubai companies to invest in South Sumatra`s energy sector

Antara News, Saturday, October 23, 2010 16:08 WIB

London (ANTARA News) - Two Dubai companies, Salam Investments and Mas ClearSight Investment Bank, plan to invest in the energy sector in South Sumatra, an Indonesian official said.

"The two companies from Dubai are interested in investing in coal mining and power generation and prepared to sink about 0.5 billion US dollars in eventual projects ," Mansyur Pangeran, Indonesian consul general in Dubai, told ANTARA here on Saturday.

Pangeran said he had accompanied Abdelhakim Mosleh of Salam Investments and Senior Vice President of Mas Clear Sight Investment Bank, Mujitaba Sarfaraz, on a business mission to the capital city of South Sumatra province, Palembang , recently.

In Palembang, they met with the head of the province`s regional coordinating agency for investment (BKPMD) as well as with officials representing coal mining and power plant sectors. The two Dubai businessmen got comprehensive information on those sectors, including aspects related to permit issuance, locations for coal mining and power plant and the supporting infrastructures.

Pangeran said after the visit to Palembang they also met with officials of the central investment coordinating agency (BKPM) and Indonesia power company PT PLN in Jakarta for further talks on their plan to invest in South Sumatra.

In accordance with the regulation for foreign investments, Pangeran added, the two Dubai businessmen sought data on Indonesian companies, state-owned or provincial government-owned companies, that will be made partners in the investments.

The business visit of the two Dubai businessmen to South Sumatra province was facilitated by the Indonesian consulate general in Dubai, Ministry of Foreign Affairs and South Sumatra provincial government (Pemprov Sumsel).

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Japan to invest $52.9 bln in Indonesia infrastructure

Reuters Africa, By Aditya Suharmoko and Janeman Latul, Fri Oct 22, 2010

• Mix of private investment, loans, grants over 15 years
• Projects include ports and power plants

JAKARTA, Oct 22 (Reuters) - Indonesia has received $52.9 billion of investment commitments from Japan over the next 15 years to develop the country's infrastructure, Indonesia's chief economics minister Hatta Rajasa said on Friday.

The deal comes as Indonesia's government is in the midst of a long-promised infrastructure improvement campaign needed to help sustain growth momentum in its booming economy.

The government, which says it can only fund about a third of an estimated $140 billion of infrastructure needs in thenext five years, hopes improved transport links and power supply will attract further long-term foreign direct investment.

"There are 44 projects, 14 projects for 2010-2014 and 30 projects for 2015-2025," Rajasa said, adding the first phase of development will connect east Sumatra and northwest Java.

He said the first 14 projects include ports at Dumai and Lampung Panjang, a north Sumatra coal-fired power plant and electricity infrastructure in northern Sumatra island, a key producer of commodities such as coal, tin and palm oil.

The projects will be funded from a combination of private investment, loans, and grants, Rajasa said.

BETTING ON GROWTH

Japan, which is also funding a metro line in traffic-choked Jakarta, committed the investments to capitalise on a growth trajectory that it lacks at home, analysts said.

"They're barely growing domestically and they are looking to put their money into emerging markets like us in order to get a boost for their economy -- infrastructure investments have reoccurring stable income," said Chandra Pasaribu, infrastructure analyst at PT Danareksa Securities in Jakarta.

"Such commitments from the government are also benefiting Japanese companies because they will get the projects where they plan to give loans or grants."

Thanks to increased political stability and resilient growth, Indonesia's government has seen much more investor interest in long-term projects recently, and expects foreign direct investment (FDI) to jump 22 percent in 2010 from a year ago.

Higher FDI would help stabilise its long-term finances and improve its chances of getting an investment grade sovereign rating, a status that would put it on a par with BRIC nations such as Brazil and lower government borrowing costs.

South Korean firms and steel giant ArcelorMittal (ISPA.AS: Quote) are considering investments in Indonesia, while Chinese wealth fund CIC is interested in investing up to $25 billion, government officials have said.

"Japan is slightly different to China," Pasaribu said. "They put more focus on high-tech projects while China is more focused on low-end ones."

(Writing by Joseph Chaney; Editing by Neil Chatterjee)

Japan Invests in Cassava Cultivation

Tempo Interactive, Friday, 22 October, 2010

Garut– A Japanese company, Nihon Yakuzen Food, through PT Java Energy will invest Rp 742,1 billion in cassava cultivation. Wahyudijaya, the Garut Investment Office chief, said the project that will be carried out on a 15.000-hectare land in Garut, West Java, is scheduled to begin next year.

For the cultivation of cassava plants and production of cassava chips, a kind of toxic but superior cassava is required. With a 9 to 10 month planting period, the harvest is expected to be 60 to 120 tons per hectare. The cost to plant on the area in Cibalong is around Rp375 billion.

To process the product, businessmen plan to build a factory on a 10-hectare area around the agricultural area. Three factories will be built with investment worth Rp55 billion to yield an annual production capacity of 450.000 tons. “The product will be exported to Japan to produce 25 to 69 million tons of cassava chips per year,” Wahyu said yesterday.

The company’s investment is expected to boost Garut’s revenues and its economy, as well as to cut down unemployment rate. After the issuance of the investment license, construction can begin and is expected to be completed within one year.

Wawan Kurnia, the Garut Regional House of Representatives’ (DPRD) B Commission member, welcomed the plan. He hoped the project is supported by the government. “If possible, people should be hired to plant the cassava and businessmen to buy the products. In that way, farmers’ living standard can improve,” he said.

If the plan to invest in cassava cultivation is achieved, the regional government can be a little relieved because the auction on Mount Papandayan’s geothermal project that can potentially produce 160 megawatt of electricity, has been canceled.

Widiyana, the Garut Water and Mining Resources Office chief, said the auction was canceled because Mount Papandayan was not in the list of the second phase of the 10.000 megawatt electricity acceleration project. Moreover, the regulation on the mining operation had not been issued by the Energy and Mineral Resources Ministry. “Yet, we submitted the request a long time ago,” he said on Monday.

As such, Widi said, the regional government will urge the Energy Ministry to issue the mining business license. Another research on Mount Papandayan must be carried out soon so that the auction can take place immediately. “We hope Papandayan will be operational by 2014.

Prospects to generate geothermal energy in Garut Regency has been offered by Garut Regent Aceng H.M. Fikri to 100 European investors, like in the Hague, a while ago. The offer was made during the 2009 West Java Expo in Banding. The Papandayan investment project was offered at US$10 million.

SIGIT ZULMUNIR

ICBC allocates us$250 million for RI

Antara News, Friday, October 22, 2010 03:06 WIB

Jakarta (ANTARA News) - The Industrial and Commercial Bank of China (ICBC) has allocated funds totaling US$250 million in the framework of its cooperation with Indonesia`s Eximbank.

"In this cooperation, ICBC allocates US$250 million to support bilateral cooperation projects," Eximbank Senior Executive Director Arifin Indra said here on Thursday.

He said that the signing of Indonesia Eximbank and ICBC was done in Beijing witnessed by Indonesian Vice President Boediono and Chinese Vice President Xi Jinping on Wednesday.

"ICBC is a biggest government-owned publicly listed bank in China with a world class capitalization," Arifin said.

The area of cooperation between the two sides covered trade, investment and finance between Indonesia and China.

The form of the cooperation is trade in mechanical products, electronics, technology products, energy and raw materials. It is also in the form of infrastructure projects and energy projects in both countries and are cultivated by Indonesian or Chinese firms.

Apart from that it also covered construction projects done by Indonesian or Chinese companies and loans from ICBC to Indonesia Eximbank for projects related to the two institutions.

The fund allocation is also provided to support Chinese buyers who want to buy goods from Indonesian exporters, or cooperation on projects between Indonesian and Chinese companies.

Timika gets first green high school in Papua

Markus Makur, The Jakarta Post, Timika, Papua | Thu, 10/21/2010 10:02 AM

State junior high school SMPN 2 in Timika would be the first environment-focused school in Mimika regency, Papua, says a regency spokesman.

Mimika regency administration assistant Alfred Douw said the green school pilot project was part of the regency’s move to improve education and preserve the environment, following a central government program launched five years ago.

“This is a new program for Mimika that should be followed by the other 32 junior high schools in the regency,” Alfred said.

As part of the program, SMPN 2 Timika is expected to teach students about environmental destruction and preservation, he said.

Mimika Secondary Education Office head Yesaya Sombuk said the school was expected to initiate a change in perspectives in the students and teachers and develop a greater respect for the environment.

He said teachers could be examples for the students in environmental action, through taking part in cleanup campaigns themselves instead of simply assigning students to do the work, for example.

“Teachers have to be creative in teaching students through example. Change, in teachers and students, has to start in school,” Yesaya said.

The regency’s environment agency head Zakarias Marey said that SMPN 2 Timika was the first school in Papua to be named an environmentally-focused school.

He said the regency administration would continue to support other schools applying to implement the environmental program.

SMPN 2 Timika principal Bernardus Manik said the school was determined to adopt the program, as they had learned how to do so from PT Freeport Indonesia’s environment division and a recent official visit to Australia.

To initiate the program the school prepared a field where students can practice planting several varieties of plants.

“We are ready to be the example of preservation of the environment in Mimika regency. We will teach our students how to respect the environment in their classes, their school and their communities,” Bernardus said.

Demianus Dimara of Freeport Indonesia said littering would be the biggest challenge for teachers to deal with, adding that while visiting SMPN 2 Timika before the program’s launch, he found a lot of plastic garbage in the school’s bathrooms and schoolyard.

“Students can change their attitudes with one simple step, such as not littering.”

RI, China sign four economic agreements

Antara News, Wednesday, October 20, 2010 20:41 WIB

Beijing (ANTARA News) - Indonesia and China have signed four economic agreements covering trade financing, investment and infrastructure development.

The agreements were contained in memorandums of understanding signed by officials from the two countries and witnessed by visiting Indonesian Vice President Boediono here on Wednesday.

The four memorandums of understanding cover an agreement to expand and deepen the two countries` trade and economic cooperation, an agreement on trade and investment financing between the Indonesia Export Financing Institute (LPEI) or Indonesia Exim Bank and China`s Exim Bank and an agreement to increase cooperation in the infrastructure development.

They also signed an agreement on the PLTU power project in Celukan Bawang, North Bali, with a capacity of 3x1500 MW.

Indonesian Trade Minister Mari Elka Pangestu said Indonesia`s Exim Bank received a financing facility of US$350 million from the Industrial and Commercial Bank of China to increase financing for domestic trade and investment.

She said the Indonesian Textile Association (API) and the Indonesian Shoe Makers Association (Aprisindo) had already signed an agreement with LPEI for Indonesia Exim Bank to be able to help the country`s textile and shoe industries in the field of financing and investment.

She said industrialists were interested in the financing from LPEI because LPEI gives an affordable interest and a risk guarantee for new exporters.

"LPEI provides financial help at an affordable interest rate and a risk guarantee for new exporters with good track records or for new vestures such as cooperation with China for the financing of new machinery procurement," she said.

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China provides 250 million US dollars for RI