Indonesian Palm Oil Giant Vows to Save Forests

Jakarta Globe, February 09, 2011

A forest cleared to make way for a palm oil plantation in West Kalimantan.
Golden Agri-Resources (GAR) and its subsidiary SMART, part of the Sinar Mas group,
said it would work with Geneva-based consultancy The Forest Trust (TFT) to ensure
its palm oil is sustainably harvested. (Reuters Photo)

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Indonesia's biggest palm oil producer pledged on Wednesday to follow new standards to protect carbon-rich forests and peatlands, in a move cautiously welcomed by environmentalists including Greenpeace.

The Forest Trust (TFT)

Golden Agri-Resources (GAR) and its subsidiary SMART, part of the Sinar Mas group, said it would work with Geneva-based consultancy The Forest Trust (TFT) to ensure its palm oil is sustainably harvested.

"We will not develop plantations on High Carbon Stock (HCS) forests, High Conservation Value forest areas and peatlands," SMART president director Daud Dharsono told reporters.

He said the partnership with The Forest Trust "aims to ensure that the group has a no deforestation footprint".

Scientists believe the destruction of carbon-storing forests is a lead cause of climate change.Indonesia is the third biggest emitter of the greenhouse gases blamed for global warming, thanks mainly to deforestation across islands such as Sumatra and Borneo, where illegal logging is rife.

Major palm oil buyers including Nestle and Unilever cancelled contracts with SMART in response to a Greenpeace campaign last year highlighting the company's allegedly unsustainable clearing of forests.

TFT executive director Scott Poynton said better management of the palm oil industry was crucial for the environment. Indonesia is the world's biggest palm oil producer.

"Without better stewardship, the phenomenal growth of the palm oil industry could spell disaster for local communities, biodiversity and climate change as palm plantations encroach further and further into forested areas," he said.

But he added: "We all know that this agreement counts for nothing if it's not now implemented".

"We have worked with other companies to clean up their supply chains successfully, and it is our intention to do so again," he said.

Greenpeace Indonesia forest campaigner Bustar Maitar said the group's campaign against GAR would be put on hold to give it a chance to prove that Wednesday's announcement was more than greenwashing.

"On paper, these commitments are really a major step forwards and if GAR implements these changes, it will save large areas of forests," he told AFP. "But we will watch closely to make sure this happens."

Agence France-Presse

Related Article:

Major Global Palm Oil Supplier GAR Agrees to New Standards for Conserving Forests and Reducing Emissions in Indonesia

FREN invests Rp 1t to build more towers

The Jakarta Post, Jakarta | Wed, 02/09/2011

Telecommunications firm PT Mobile-8 Telecom (FREN) is allocating Rp 1 trillion (US$110 million) to build 2,000 more towers as part of its expansion program.

“We want to double our base transceiver stations [BTS],” FREN president director Merza Fachys said Wednesday, as quoted by kontan.co.id.

FREN was recently able to raise Rp 3.7 trillion from a rights issue.

Currently, FREN has between 1,500 and 2,000 BTS.

Rotterdam mayor in Jakarta to help

RNW, 8 February 2011, By Michel Maas

(Photo: RNW/Michel Maas)

The Mayor of Rotterdam, Ahmed Aboutaleb, is visiting the Indonesian capital Jakarta. The two cities have signed a cooperation agreement for water management, but can Rotterdam's good intentions overcome the enormous problems facing the Indonesian port?

The mayor and his entourage are watching a small dredger pushing a mountain of thick black sludge and unidentifiable waste in front of it. A bucket scoops sludge from the water. The show is part of a project which doesn't seem to be making much impact. So much rubbish has accumulated under the bridge on which the bucket grab is standing that a dam has been created.

The dredging project is one of those in which Rotterdam is involved. It's not making any headway because there is no budget. Apparently that often doesn't appear until halfway through the year. No one in the mayor's group understands how this can be possible, but it seems that's the way things work here: Jakarta can do nothing without the government, the city services can do nothing without a budget. "The system needs to change" remarks Mayor Aboutaleb, but there is nothing Rotterdam can do to help with that.

Dry feet

The mayor has just signed an agreement under which Rotterdam is committed to work with Jakarta on water management. "Rotterdam can do a lot for Jakarta. We have a great deal of expertise with water." And expertise is much needed in Jakarta.

Mayor Aboutaleb is given a tour of the northern area, where the city meets the sea. The ground is visibly sinking: at the rate of seven centimetres a year. It won't be long before large parts of the city are under water.

He compares the situation with the Netherlands of 1953: after the flood everyone in Rotterdam was persuaded of the need for good seawalls. "Dry feet are a must. I see people in Jakarta are now aware of that. Dry feet are topic number one!"

Brick wall

The dredgers are part of the dry feet initiative. They will be used to clear out Jakarta's choked up canals and ditches in order to solve another water problem. Every rainy season parts of the city are flooded because there is nowhere for the water to go.

There are no seawalls to be seen and the dredgers stop working as soon as the mayor and his entourage are back on the coach. Ahmed Aboutaleb sighs "sometimes I have the feeling I'm up against a brick wall". Two days in Jakarta and the mayor seems close to despair already.

Then there is Jakarta's massive traffic problem. With no public transport and a desperate lack of roads, the city is in danger of coming to a complete standstill. On Sunday the mayor had an opportunity to spend plenty of time in a weekend traffic jam himself.

Religious background

But Aboutaleb is adamant: "Rotterdam can do a lot for Jakarta". Jakarta's governor, Fauzi Bowo, acknowledges that. Rotterdam is giving his officials training courses and Rotterdam is also giving Jakarta a foot in the door in the Netherlands, in Europe if you look at the broader picture. "We can't finance our projects ourselves. But we can talk to the World Bank, the Asian Development Bank and the European Union." He may not expect much of Rotterdam but every bit of help is clearly welcome.

Mayor Aboutaleb has another lesson for the Indonesians. The Netherlands is always described there as "the land of the windmills". Then there's the colonial history. And Geert Wilders. "At dinner they asked me what it was like being mayor of Rotterdam with my name and religious background. But in the Netherlands you can be given opportunities no matter where you were born."

He is opposed to the image of the Netherlands "elsewhere in the world, including here in Indonesia" as a country slipping into a deep pit of racism. "It's absolutely not true. I think it's important for someone like me to tell his story on a regular basis."

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Wilmar Int’l set to relocate factories to RI: Govt

The Jakarta Post, Jakarta | Tue, 02/08/2011

The world’s largest palm oil producer, Wilmar International, has proposed to relocate its factories from Malaysia and China to Indonesia this year, a minister says.

“The relocation will begin this year,” Industry Minister MS Hidayat said on Monday as quoted by kompas.com.

Hidayat said Wilmar had planned to relocate its factories to Gresik, East Java, due to the existing infrastructure in the city, but the government had asked the firm to also set up factories in Riau, Indonesia’s main palm oil province.

He added that Wilmar had agreed to do so on the condition that the government could develop infrastructure such as roads to the seaport in Riau.

WIKA secures $16.9 million power plant project in Timor Leste

The Jakarta Post, Jakarta | Tue, 02/08/2011

Publicly listed constructor PT Wijaya Karya (WIKA) said Monday it had secured a US$16.9 million power plant project in Timor Leste.

WIKA president director Bintang Perbowo said the power plant, with an anticipated capacity of between 50 and 100 megawatts, will be executed by WIKA subsidiary, PT WIKA Insan Pertiwi.

“This project is expected to be completed on Feb. 20, “ Bintang said Tuesday as quoted by kontan.co.id.

The firm, along with PT Mirlindo Padu Kencana, also plans to build a 50 MW diesel power plant in Pesanggaran, Bali, worth Rp 550 billion (US$ 61 million), he said.

Indonesia to build cardiac center in Palestine

Antara News, Tue, February 08 2011

Jakarta (ANTARA News) - The Ministry of Health is building a cardiac center at Al Shifa hospital in Palestine, at a cost of Rp20 billion.

"Heart disease is most prevalent in the area, so is in eye diseases, but we chose a cardiac center because it is more life saving," Health Minister Endang Rahayu said after signing an MoU here Monday.

The MoU was signed by Health Ministry`s Secretary General Ratna Rosita and President of the Islamic Development Bank (IDB) Ahmed Mohamed Ali in Jakarta Monday afternoon in the presence of the health minister.

The Indonesian Cardiac Center will be built on 1,500 square meters of floor space of the five floors of Al Shifa hospital in Northern Gaza, Palestine.

It will take eight years to build the center with a grant from the Indonesian government, including the medical equipment.

The medical facility is built under an Indonesian government`s commitment to provide humanitarian assistance for the people and government of Palestine as declared in the 2009 OKI meeting for the Reconstruction of Palestine in Sharm el Sheik, Egypt.

In the meantime the IDB became a partner in building the project.

IDB is committed to provide 8 million US dollars for the Indonesian Cardiac Center.

Upon completion of the project, the health minister will grant to the Palestinian government, which will be followed by an exchange in science and health personnel.

"The Palestinian government will not block the access of Indonesian volunteers," the health minister said.

Editor: B Kunto Wibisono

Jakarta sinking fast in wake of construction boom

Hans David Tampubolon, The Jakarta Post, Jakarta | Mon, 02/07/2011

A recent study concluded that land subsidence in Jakarta accelerated at an alarming pace in the past four decades, and if no remedial measures were taken, the northern part of the city could sink below sea level in the next decade.

Bandung Institute of Technology (ITB) researcher Heri Andreas said the persistent inundation of North Jakarta would only get worse in the future.

“Several areas in the northern coastal region of Jakarta will subside by 60 centimeters by 2020. In 2050, the area could sit 2.2 meters lower than in 2008,” said Heri, who is also a member of the Jakarta Coast Defense Strategy (JCDS).

Heri predicted that if no action was taken to mitigate land subsidence, flooding and high tides would contribute to 5,100 hectares of land in North Jakarta being submerged in 2020 and another 6,000 hectares in 2050.

A worst-case scenario, however, put the figures at 16,200 hectares in 2020 and 18,100 hectares in 2050.

“In this scenario, the northern coast of Jakarta could be 2 meters under water by 2020 and 6.9 meters under water by 2050,” Heri said.

Global sea levels have risen at a rate of about 1 to 2 millimeters per year on average, and this rate is expected to increase to 5 millimeters per year by 2050.

A recent study by ITB showed that the sea level in the Jakarta northern coastal region rose at a rate of 5.7 millimeters per year.

The most recent finding by the JCDS showed that around 40 percent of land in Jakarta was already below sea level.

Given the finding, the JCDS predicted that within between the next 10 to 20 years, 50 percent of the city would lie below sea level.

The JCDS data also showed that between 1974 and 2010, the Muara Karang area in North Jakarta had sunk 4.1 meters. West Cengkareng in Tangerang had sunk 2.5 meters in the same period.

The Daan Mogot area in West Jakarta and Ancol in North Jakarta sank 1.97 meters and 1.88 meters respectively in the same period.

Between 1974 and 1982, land subsidence rates were not as significant as today. The problem became worse after the region saw a construction boom in property and industry.

A number of dikes constructed by the city, including in Muara Angke, Muara Karang, Pluit, Cilincing and Marunda, are no longer capable of holding back the water that has increased rates of land subsidence.

Jakarta Governor Fauzi Bowo recently admitted that the city was sinking at an alarming rate.

“We have no other choice but to construct a new embankment in Jakarta Bay,” Fauzi said.

He said the city needed a giant seawall to protect the capital from flooding, but added that construction could only begin in 2025.

The construction of the seawall is a joint project run by the city administration and the JCDS, which is funded by the Dutch government.

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Jakarta Plans to Construct Sea Wall Along North Coast

Jakarta Predicted to be Underwater By 2012

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Migration Due to Climate Change Demands Attention - ADB

Jakarta to Build Sea Wall

Tempo Interactive, Friday, 04 February, 2011

TEMPO Interactive, Jakarta:Researchers from Jakarta Coastal Defense Strategy (JCDS) Consortium recommended that the Jakarta Government build a giant sea wall to manage floods. The sea wall will extend 60 kilometers from Tangerang, Jakarta up to Bekasi. “The construction is made possible because the technology has been applied in New Orleans, US,” said member of the JDCS Consortium, Heri Andreas, last Tuesday.

The sea wall was recommended to manage two big threats causing frequent flooding in Jakarta, which are ground subsidence by 10- centimeters per year and the rise of the sea level by 5 millimeter per year. The construction of the sea wall along the North coast of Jakarta is judged to be effective in reducing the threats.

Heri admitted sea walls were not the only way to manage the floods. Another method would be to stop ground water usage and refilling it back. But total stoppage would be unlikely because it is one of the main sources of water.

Even though there are plans to a water refilling plant at the Jatiluhur dam area, the Jakarta Government is still not ready to do this. “By reducing ground water intake, the ground will still subside by 10 to 15 centimeters per year. Even if we refill the water, the ground will still subside in 5 years time,” said Heru,” Meanwhile the danger of rising sea levels cannot be solved because it is caused by global warming.

Heri said that the government has tried to solve the problem partially by building embankments in Kamal Muara and other sites. But it is still regarded as insufficient.

RENNY FITRIA SARI | ENDRI K

To boost ties, Sweden to open trade office in Jakarta

Veeramalla Anjaiah, The Jakarta Post, Jakarta | Sun, 02/06/2011

In line with the growing economic interaction between Sweden and Indonesia, Stockholm will open its first ever trade office in Jakarta on Monday, the Swedish ambassador to Indonesia says.

“Our trade minister Ewa Bjorling will formally inaugurate the new trade office on Monday,” Ambassador Ewa Polano told The Jakarta Post on Sunday.

Trade between the two countries currently hovers around US$1 billion, a huge jump from the $607.86 million in 2005. More than 40 Swedish companies currently operate in Indonesia.

Minister Bjorling and her 25-member business delegation were scheduled to arrive in Jakarta on Sunday.

Besides opening the trade office, Bjorling will address a seminar, “Green Growth for Indonesia”, on Tuesday. She will also hold discussions with Environment Minister Gusti Muhammad Hatta, Public Works Minister Djoko Kirmanto and Trade Minister Mari Elka Pangestu.

Bjorling plans to meet with ASEAN Secretary General Surin Pitsuwan on Tuesday.

Hungarian parliamentary delegation visits Yogyakarta

Antara News, Sat, February 05 2011 10:20

Jakarta (ANTARA News) - A Hungarian parliamentary delegation in their visit to Indonesia from February 3 to 8, went to Yogyakarta where among others they met with Mt Merapi victims.

In the visit to Yogyakarta on Friday the Hungarian parliamentarians were in the company of the Hungarian-Indonesia Parliamentary Bilateral Cooperation Group chairman Sucipto.

The Hungarian parliamentarians led by Laszlo Kover, will be flanked by Hungarian ambassador to Indonesia Szlivester Bus.

They will meet Yogyakarta Governor Sri Sultan Hamengkubuwono X and later in the afternoon visit a silver handicraft center in Kotagede, and in the evening meet with Yogyakarta Deputy Governor Paku Alam IX, also to be attended by Sleman Regent H Sri Purnomo, who was scheduled to receive aid from the Hungarian guests.

The aid included rice, noodle, frying oil, canned meat and fish, in addition to school equipment.

On Saturday the Hungarian parliamentary delegation will visit the Borobudur Buddhist temple, the living quarters of evacuees, and visited the emergency school where the guests donated school equipment.

Later in the evening the Hungarian guests will be entertained at a Ramayana dance show at Prambanan temple.

On the third day before leaving for Jakarta, the guests will visit the Yogyakarta Palace, Taman Sari park, a batik handicraft and leather puppet center.

On Sunday the Hungarian guests were scheduled to meet President Susilo Bambang Yudhoyono, and later meet with Economic Coordinating Minister Hatta Rajasa.

In the afternoon they will meet House Speaker Marzuki Alie and Chairman of the People`s Representatives Assembly (DPD) Irman Gusman.

On the last day of their Indonesian visit on Tuesday they will meet People`s Consultative Assembly (MPR) chairman Taufik Kiemas, followed by a visit to the Cathedral, Istiqlal Mosque, and the National Museum.

Editor: Bambang

M`sian bizman to build 300 condos in Maluku

Antara News, Sat, February 05 2011

Ambon, Maluku (ANTARA News) - Malaysian businessman Datuk Wong Hee Toh is to build 300 condominiums in the Kudamati area for foreigners who want to do business in Ambon.

"What has prompted the Malaysian businessman is Maluku`s tourism potential. Tourism is a self-reliant people`s economic source," he said.

Khadijah Iskandar, director of Damuli Sarana Sdn. Bhd. of Malaysia said Wong Hee Teh had visited Ambon in early January and surveyed the area to be developed as a "business center".

He said 300 condominiums to be built on lands owned by individuals would be put on sale at the price of Rp300 million - Rp one billion per unit.

The sceneries of Ambon Bay and Ambon`s city center that can be enjoyed were an added value of the project.

Editor: Bambang

Indonesians Receive Australian Scholarships

Antara News, Fri, February 04 2011

Jakarta (ANTARA News) - The Australian Government has awarded scholarships to seventeen high achieving Indonesians to continue their study or research program in Australia and eight Australians to conduct research in Indonesia under the 2011 Endeavour Awards program.

Australian Ambassador to Indonesia, Greg Moriarty honoured the scholarship recipients in an awards ceremony in Jakarta on 2 February and launch the "Endeavours of Excellence - 60 years of scholarship in South and South East Asia" publication.

"Australia is very proud of these high achieving Endeavour Award recipients who we believe will continue to strengthen the professional and personal linkages between Australia and Indonesia," said Ambassador Moriarty as quoted in a press statement posted on the official website of the Australian embassy in Jakarta, Friday.

The Endeavour Awards is part of the Australia Awards initiative, an international scholarship scheme that supports students, researchers and professionals to study in Australia and for Australians to study, research and to undertake professional development overseas.

Rachmad Hidayat, a recipient of the 2011 Prime Minister`s Australia Asia Endeavour Award and currently a senior lecturer at the Universitas Islam Negeri Sunan Kalijaga, said an overseas academic experience is very important in broadening the viewpoint and attitude in critical thinking and analysis.

The "Endeavour of Excellence" publication celebrates the education ties between Australia and its regional neighbours featuring the achievements of Australian alumni from South and South-East Asia over a period of 60 years.

"The book highlights the importance of education in strengthening the people-to-people links, through intellectual exchange, cultural understanding and enduring friendships," added Ambassador Moriarty.

A number of prominent Indonesians are profiled in the publication including Dr Ir Hartarto Sastrosoenarto AO, who served under three Indonesian Presidents from 1983 to 1999; Abdullah Alamudi, a leading voice in Indonesia?s fight for freedom of the press; and Mira Lesmana, a celebrated and well-known member of the arts industry.

Editor: AA Ariwibowo

Dumai airport built for Boeings

Antara News, Wed, February 02 2011

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Dumai, Riau (ANTARA News) - The Pinang Kampai airport of Dumai, Riau, normally used by Fokker planes, will be built for use by bigger planes like Boeings.

Head of the Dumai transportation agency H Marwan said here Tuesday that the promotion is first of all carried out by increasing the length of the runway from 1,800 x 40 meters to 2,250 x 40 meters.

"We are doing this because the runway of a Boeing is basically 2,000 meters long. We therefore have to renovate the airport by making its runway longer," he said.

The renovation of the airport Marwan said is also necessary because of the loan (for use) cooperation in running Pinang Kampai or a grant of state oil company PT Pertamina to Dumai city administration for 2011 will be continued.

"This is an agreement of the city administration which had reviewed the MoU reached in 2008," Marwan said.

Marwan said not only to lengthen the runway, the other facilities of the airport which are thought to be not enough need to be renewed by the procurement of supporting heavy equipment.

"The improvements and building of Pinang Kampai will have its funding and budget from the State Budget of the Transportation Ministry estimated at Rp 34 billion," Marwan said.

The company has five Fokker-50 planes, and is trying to procure several Boeings.

Editor: B Kunto Wibisono

State plantation firm to build CPO factories in Kalimantan

The Jakarta Post, Jakarta | Tue, 02/01/2011

A state plantation company says it has allocated Rp 120 billion (US$ 12.9 billion) to build two factories to process crude palm oil (CPO) in Modang and Petangis districts, East Kalimantan.

The construction of the two factories will start this year and next year, and is expected to be complete within two or three years, Perkebunan Nusantara (PTPN) XIII general manager Anang Chaerul said Tuesday as reported by tempointeraktif.com.

PTPN XIII currently owns seven CPO processing plants in Kalimantan. Three of them are located in palm plantation areas in Paser and have a capacity to produce up to 1,000 tons of CPO a day.

“There is a huge potential for the expansion of palm plantations here. Every day there around 10 hectares of land is converted for palm plantation use,” he said.

The company currently manages 41,770 hectares of palm plantations in East, South, West and Central Kalimantan. A total of 39 percent of these areas are core plantations and the rest belong to plasma farmers.

Last year, the company’s CPO production reached 142,317 tons, increasing from 108,996 tons in 2008 and 135,321 tons in 2009.

Anang has targeted for all of the plasma farmers’ 25,194 hectares of land to be managed by the company so it can double its CPO production.

“That’s why we need new factories,” he said.

Yudhoyono Hopes to Impress Foreign Leaders With $280m Bali Convention Center

Jakarta Globe, Made Arya Kencana | January 27, 2011

Plans are underway for the construction of a new $280 million convention center in Bali that will serve as the main venue of the Asia Pacific Economic Cooperation summit to be held on the island in 2013.

The convention center was requested by President Susilo Bambang Yudhoyono as a means of boosting the country’s image on the international stage, Turman Siagian, the head of the planning bureau at the Culture and Tourism Ministry, said on Thursday after an APEC planning meeting.

“The president would like to dedicate the very best to increase Indonesia’s image in the eyes of the international community,” he said.

The annual APEC summit is attended by the heads of state of 21 Pacific Rim countries, and is held to promote free trade and cooperation between member states.

Turman said the Bali International Park will be built on a 54-hectare plot of land in Jimbaran, Badung district.

Aside from seating 10,000 people in its assembly hall and 2,500 more in a secondary hall, the facility will also be equipped with a commerce center, an exhibition space and a cultural center.

Heads of state will stay in 21 residential units within the compound during the summit, according to Frans Bambang Siswanto, commissioner of project developer Jimbaran Hijau.

“The budget projection for the Bali International Park is estimated at $280 million,” he said.

Additional facilities will include a hotel, an international standards medical clinic, and art market and gallery, Frans said.

A tower symbolizing peace will be the focal point of the convention center compound.

The project is slated to begin sometime early this year and is targeted for completion by April 2013 in time for the summit.

“After the APEC summit, Bali International Park is designed to be a comprehensive tourist destination that can serve as an alternative to the other tourist spots in Bali,” Frans said.

When asked why the island needed a new convention center, Turman said the Bali International Convention Center in Nussa Dua was no longer suitable for large-scale events as it had only 5,000 seats and lacked the proper amenities for hosting foreign dignitaries.

Aside from the convention center, other infrastructure is also being built, such as a new toll road that will connect Denpasar and Nusa Dua.

RI-Indian bizmen`s cooperation worth 15.12 billion dollars

Antara News, Tue, January 25 2011

New Delhi (ANTARA News) - Indonesian and Indian businessmen have signed 18 memoranda of understanding (MoUs) on investments and development projects worth 15.12 billion US dollars.

The MoUs were signed following a bilateral business forum attended by President Susilo Bambang Yudhoyono and about 500 Indonesian businessmen at Taj Palace Hotel`s Durbar Hall here Tuesday.

The 18 MoUs included investment in important development projects like railway tracks, airports, power plants, shipyards, information technology, fertilizer plants, metal industries, and special economic zones.

The Indian enterprises that signed the MoUs included India GVK, Tata Power, Reliance, ICVL, Adani Group, Trimex Group, and Pipavav Shipyars.

Their Indonesian partners which signed the MoUs included PT Bukit Asam, PT Pupuk Sriwijaya, PT Angkasa Pura I, PT Multipolar, PT PAL, PT PLN, PT Mega Urip Pesona, and PT Eastern Infrastructure International.

The MoUs also involved the provincial administrations of South Sumatra, Jambi, and East Kalimantan, and the district administrations of Kendal and Buleleng.

According to Head of thee Investment Coordinating Board (BKPM) Gita Wirjawan, the MoUs were fixed and would immediately be implemented because the Indian companies had conducted the relevant surveys in Indonesia.

"All will be followed up with the signing of joint-venture agreements. They have actually worked in the past few months."

"They have even visited the heads of district and governor`s offices, BKPM office, and related ministries. So, this is real and will be realized," Gita Wirjawan said.

The investment cooperation between the two business communities would be implemented in rather neglected areas in which the majority of the MoUs on infrastructure and strategic industry projects were located outside Java, he said.

Gita said that about 60 - 70 percent of total worth of the investment had been pledged by four Indian tycoons, namely Ambani Group, Tata Group, Trimex Group, and GVK Group.

Ambani Group wanted to invest in infrastructure and entertainment, while GVK Group offered infrastructure development projects as building a health center for very poor people.

Then, Trimex Group offered smelter and railway track development projects, while Tata Group was interested in investment in the educational, automotive, and infrastructure sectors.

In response to this investment cooperation, Minister of Industry MS Hidayat said President Yudhoyono had asked Indonesia to build partnership with Indian automotive industries as Tata Group for the manufacture of vehicles that could serve inter-village and inter-district routes outside Java island.

"The President pays special attention to automotive production, particularly passenger/cargo vehicles. We want to talk about this," he said.

One such vehicle was sold Rp60 million in India, he said adding that the Indian automotive industries were also interested in building factories in Indonesia.

President Yudhoyono and First Lady Ani Yudhoyono would be in India from January 24 to 26, 2011. This is his second state visit to the South Asian giant since November 2005.

After India, the Indonesian head of state is scheduled to attend the World Economic Forum`s annual meeting in Davos, Switzerland.

The 2011 World Economic Forum would be held on January 26 - 30. Before going to Davos, President Yudhoyono would first make a state visit to India to attend the country`s national day.

West Sulawesi to build 10,000-ton fuel oil depot

Antara News, Tue, January 25 2011 12:21

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Mamuju, W.Sulawesi (ANTARA News) - The West Sulawesi provincial administration will build a 10,00 ton fuel oil depot at Belang Belang Port in Mamuju district, West Sulawesi, a local official said here Monday.

The fuel oil deport owned by state owned company PT. Pertamina was reported to be built in this year, an information obtained from the provincial administration office said here on Tuesday.

Haeruddin Anas, a spokesman for the administration office, said the local government had actually prepared about two hectares of land for the construction of the depot, the location of which is close to Belang Belang Mamuju port area.

"Pertamina was reported to have agreed with the depot construction and a feasibility study on the location will be conducted in a relatively short time, he said.

According to him, the construction of the depot in West Sulawesi was to be carried out in a bid to the province`s rising demand for in fuel oil which was directly procured from Pertamina depot in Pare-pare, South Sulawesi.

"So far, fuel oil for West Sulawesi is supplied by Pare-pare depot, the distance of which is about 300 kilometers long from Mamuju city.

Hence, the construction of fuel oil depot in West Sulawesi will ease the people in that province in getting fuel oil for their needs. Practically they will no longer be dependent on supply from Pare pare.

As a matter of fact, the construction of fuel oil depot in West Sulawesi aimed to meet rising demand from several industries in Belang Belang Mamuju port and other areas for fuel oil, he said

In addition, a increasing number of vehicles as means of transportation as well as intensive implementation of development program also caused the demand for fuel oil in this new autonomous province to rise.

R-Power to invest $5bn in Indonesia

TNN, Jan 25, 2011, 02.38am IST

MUMBAI: In what is being seen as one of the largest foreign investments in Indonesia, Reliance Power will infuse $5 billion (around Rs 22,000 crore) in two projects-one each in South Sumatra and Jambi provinces. The investment covers coal mining, setting up of railway lines, ports and power projects.

According to a senior company official, who did not wish to be identified, the project in South Sumatra involves development of a 2- billion MT coal mine, a 200-km railway line, a port and a 2,000-MW power project at a cost of $3.5 billion. The project in Jambi involves another coal mining unit, along with a port, railway line and a small power plant. It will cost $1.5 billion without the power project.

Reliance Coal Resources, a subsidiary of Reliance Power, will sign two MoUs with representatives of the governments of both the provinces in New Delhi on Tuesday. Reliance ADA Group chairman Anil Ambani and Indonesian President Susilo Bambang Yudhoyono are exected to be present during the occasion. Fiscal concessions, including land, are being offered to Reliance Power to make it attractive for them to invest in Indonesia, the official said. The investment for the development of the coal mine, rail & port infrastructure and the power project in Sumatra would be made in the next five years.

In 2010, Reliance Power's wholly owned subsidiary Reliance Coal Resources had acquired three coal mines owned by two companies PT Sriwijaya Bintang Tiga Energi and PT Brayan Bintang Tiga Energi in the South Sumatra province. The three mines are spread over 1,25,000 acres and have over 2 billion MT of coal. The Indonesian government is providing the other concessions as Reliance Power would develop the other projects associated with it which include the railway line, port and power.

Coal from these mines will be exported for Reliance Power's Krishnapatnam Ultra Mega Power Project in Andhra Pradesh. which is based on imported coal and also used for its 2000 mw project in Indonesia. These mines would ensure steady supply to the Krishnapatnam Project and also be more economical than other imported coal. Officials said talks are already on with banks to finance the first project in south Sumatra.

Ryaas: Hard to keep Jakarta as capital city

The Jakarta Post, Jakarta | Mon, 01/24/2011

Presidential Advisory Council member Ryaas Rasyid says that Jakarta is becoming more difficult to keep as the capital city and suggests moving the capital somewhere else.

“A capital city does not need mining and other industries. Instead it needs seclusion for the government to work with ease,” Ryaas said during a seminar, titled “The Country’s Capital, Challenges and Hopes” in Makassar, South Sulawesi, on Monday.

Ryaas said that Jakarta had become central to nearly everything, but given its complexities the capital should immediately be moved to another area.

There are two options, according to Ryass, either to move the capital city or the government offices to another province.

“Either somewhere in or off Java. South Sulawesi has been the first to be nominated, and may prompt other provinces to nominate [themselves] as well,” he said, as quoted by tempointeraktif.com.

“We must not be blinded by a concept based on history that Jakarta should be kept as the capital city,” he added.

Perhaps Sukarno decided to locate the central government in Jakarta based on Indonesia’s hard-earned triumph over the Netherlands in the past, Ryass said.

South Sulawesi’s prospects also depend on further examinations of urban planning and other requirements.

The government itself, he said, needs to prepare a preliminary budget both for the country and outside of the country.

Noted businessman Tanri Abeng said that if South Sulawesi wants to nominate itself as the new capital city, it should start promoting multi-cultural perspectives in the city’s life.

Tanri alluded to nagging tensions between different ethnic groups in the city.

“That [anti-multiculturalism] culture needs to be changed. If not, how can we suggest the city to host the capital should its culture fail to accommodate different ethnic groups,” he said.

Related Articles:

Indonesia should learn from Brazil in moving capital city: Observer

President: Relocating the capital city an option

Mitsubishi to Build $2.8 Billion Indonesia LNG Plant

Bloomberg, By Yuji Okada and Go Onomitsu - Jan 24, 2011

Mitsubishi Corp. Japan’s largest trading company, will build a $2.8 billion liquefied-natural gas plant in Indonesia with partners including Korea Gas Corp., the world’s largest LNG buyer, and state-owned oil company PT Pertamina.

The Donggi-Senoro project on Sulawesi island will produce 2 million metric-tons-a-year of LNG and 47,000 barrels-a-day of condensate from 2014, Mitsubishi said today on its website. PT Pertamina and PT Medco Energi Internasional, Indonesia’s biggest listed oil company, own two gas fields that will supply the Donggi-Senoro LNG plant.

“Profit for Mitsubishi from the project will be limited because it doesn’t have equity for the upstream part,” said Yasuhiro Narita, a Tokyo-based analyst at Nomura Securities Co. “But Mitsubishi will gain know-how of plant operation. That will be an important milestone for the company’s future natural resource businesses.”

Japanese trading houses including Mitsubishi are expected to report record profits during the 2012 Japanese financial year because of higher prices for natural resources, Macquarie Group Ltd. said.

Mitsubishi shares rose 2.1 percent to 2,321 yen at 2:13 p.m. in Tokyo, heading for the biggest one-day gain in two weeks. Medco rose 6 percent to 3,100 rupiah as of 9:52 a.m. local time, set for the steepest increase since Dec. 30. Korea Gas added 0.7 percent or 300 won to 44,400 won.

Partners

The joint-venture PT Donngi-Senoro LNG will sign a contract with Japan’s JGC Corp. to build the plant in Central Sulawesi. PT Donngi-Senoro LNG has signed long-term LNG sales agreements with Chubu Electric Power Co. and Kyushu Electric Power Co. and is negotiating with Korea Gas to finalize a deal.

JGC shares rose 2.6 percent, or 50 yen, to 2,028 in Tokyo as of 2:14 p.m.

A special purpose company, in which Mitsubishi and Korea Gas have 75 percent and 25 percent respectively, will hold 59.9 percent of PT Donngi-Senoro LNG. Mitsubishi solely has 51 percent of the joint venture, according to the statement.

PT Pertamina will hold 29 percent, while Medco’s share will fall to 11.1 percent from 20 percent as Mitsubishi strengthens control.

To contact the reporter on this story: Yuji Okada in Tokyo at yokada6@bloomberg.net; Go Onomitsu in Tokyo at gonomitsu@bloomberg.net.

To contact the editor responsible for this story: Clyde Russell at crussell7@bloomberg.net.

Related Article:

Kogas to join Donggi Senoro LNG plant project

Govt allocates Rp12 Bln to develop Trunojoyo airport

Antara News, Saturday, January 22, 2011

Sumenep, E Java (ANTARA News) - The government has agreed to allocate Rp12 billion to develop Trunojoyo airport in Madura island, East Java, an official said.

"Thank God, the Sumenep district government`s effort to develop Trunojoyo airport has received attention and support from the central government," Head of the Sumenep district transportation office R. Achmad Aminullah said here on Friday.

The funds would be taken from the 2011 state budget, he said.

He said the local government had since the past few years planned to develop the airport as a commercial airport for scheduled flights.

"Right now Trunojoyo airport does not meet requirements as a commercial airport due to a lack of required facilities," he said.

The airport which had 905-meter runway lacked necessary facilities such as fire trucks and waiting rooms, he said.

"It is impossible for the local government to overcome the shortcomings on its own. Therefore, we have asked for assistance from the central government to provide funds to develop the airport," he said.

Norway students to study in Bali

The Jakarta Post, Jakarta, Fri, 01/21/2011

A total of 403 students from Gateway College in Norway will be leaving for Bali to study in the coming semester, the Indonesian Embassy in Oslo says.

The students would study philosophy, cultural psychology, sports, tourism management, economics and Indonesian language, the embassy’s third secretary for social affairs and culture Febby Fahrani said in a statement made available to Antara on Friday.

The students will work with assistance from lecturers of Telemark University College, Sogn og Fjordane University College, Le Sud University College, Lillehammer University College and Udayana University in Bali.

Before leaving for Indonesia, Ambassador Esti Andayani hosted a farewell party that allowed the students to enjoy Indonesian food, Balinese gamelan and a documentary film about Indonesia with a particular focus on Bali.

They are among 670 students from Norway who will study in Bali during the first semester of the year beginning February. The others are from GOstudy (140 students), Active Education (96 students) and Kulturakademiet (31 students).

Last year saw 1,285 students from the four colleges participate in pre-university study exchanges in Bali, a 50 percent increase from the previous year.