RI sending mitigation team, US$2 million in aid to Japan

Antara News, Wed, March 16 2011

Marty also said Indonesia was also helped by Japan every time it was hit by a natural disaster and it was very reasonable and appropriate if on this occasion Indonesia assisted Japan in its time of need.

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Jakarta (ANTARA News) - The Indonesian government is sending a disaster mitigation team and two million US dollars in aid to help Japan recover from its recent disaster, Foreign Minister Marty Natalegawa said.

Speaking at a press conference with Japan`s Parliamentary Vice-Minister for Foreign Affairs Makiko Kikuta at the Foreign Affairs Ministry here Wednesday, Marty said the 11-member disaster mitigation team would depart on Thursday, March 17, 2010.

Along with the disaster mitigation team, the Indonesian government would send funds for disaster aid amounting to two million US dollars.

"Besides sending a disaster mitigation team that is to be dispatched tomorrow (Thursday, March 17) consisting of approximately 11 people from Indonesia, the Indonesian government has also decided to provide a two million US dollar donation or contribution to the Japanese people and government," said Marty.

Marty also said Indonesia was also helped by Japan every time it was hit by a natural disaster and it was very reasonable and appropriate if on this occasion Indonesia assisted Japan in its time of need.

"In situations like this where an extraordinary natural disaster has occurred, we must not think as a country only but also as one humanitarian act that move together hand in hand in cooperation to assist the revival of the Japanese people," said Marty.

The arrival of Japan`s Parliamentary Vice-Minister for Foreign Affairs Makiko Kikuta to Indonesia is to co-chair with Indonesia in the ASEAN Regional Forum Disaster Relief (ARF DiREx) which opened on Wednesday in Manado, North Sulawesi, and the "Priority Metropolitan Area" event, Kikuto is determined to make a success out of these two activities.

"In this visit I also met with Indonesian Vice President Boediono and a number of ministers who expressed their concerns and condolences for what happened in Japan," said Kikuta.

According to Kikuta, the Government of Japan highly appreciated Indonesian attitude in providing concrete assistance in the current Japanese situation where the situation is still chaotic after being hit by a 9-magnitude earthquake and tsunami.

The disaster is reported to cost almost 1000 casualties and about 2000 people are stated missing.

Until now the Indonesian government through its Embassy in Tokyo also had to deploy evacuation team for the citizens and to assist the Japanese government in overcoming the impact of natural disasters.

"I appreciate a lot for Indonesian support and assistance. Indonesia has managed to rise from some natural disaster that passed earlier, and then the people of Japan are also sure to rise again after this disaster," said Kikuta.

Editor: Heru

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Australia donates 3 patrol boats to RI to curb people-smuggling

The Jakarta Post, Jakarta | Wed, 03/16/2011

The Australian government will donate three patrol boats worth a total of US$5 million to Indonesia to help tackle the issue of people-smuggling through Indonesian-Australian waterways.

"The high-speed patrol boats will be placed in a number of strategic locations in Indonesia,” Australian Home Affairs Minister Brendan O'Connor said on Wednesday after meeting with Indonesian National Police chief Gen. Timur Pradopo at the National Police headquarters in Jakarta, tempointeraktif.com reported.

The three boats are currently being worked on by an Australian company in three different locations: Perth, Australia, Vietnam and Singapore.

Australia also donated $4.8 million to upgrade equipment and facilities at the Indonesian National Police's cyber crime center.

OZ investor wants to develop dairy cow farm in E. Java town

The Jakarta Post, Jakarta | Wed, 03/16/2011

An Australian investor has expressed interest in developing a dairy cow business in the East Java town of Lumajang in partnership with a local firm.

Lumajang administration economic division head Nurul Huda stopped short of naming the Australian investor, but added he and the local investor, PT Mahesa Agri Pratama, considered Lumajang a good place to develop such a business.

“It's good in terms of climate. Besides, we have abundant potential cow food here,” Nurul said in Lumajang on Wednesday, as quoted by tempointeraktif.com.

She said Pronojiwo, Pasrujambe and Candipuro districts in the East Java town were now being eyed as the center for the dairy cow business.

Nurul added that the two investors had sent their envoys to discuss their interest with the local administration, and had calculated the potential profits.

They are also planning to build a milk factory for export purposes, she said.

Lumajang Farming Agency head Gatot Subiyantoro said there were currently 5,000 cows in Lumajang, 4,500 of which produced milk. The number of cow farmers in the area is 1,100 people, who comprise 100 farmer groups, he added.

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Daihatsu Motor to invest $400m in Indonesia

The Jakarta Post, Jakarta | Wed, 03/16/2011

Automaker Daihatsu Motor Company Ltd on Wednesday announced plans to invest US$400 million on its factory in Indonesia.

“The investment will not only be allocated to expanding the existing factory, but also to improve its technology and development,” Astra Daihatsu Motor president director Sudirman said after a meeting with Vice President Boediono on Wednesday, as quoted by kontan.co.id.

With the investment, the Daihatsu factory will have an expected production capacity of 100,000 vehicles a year and absorb 1,400 workers. At present, the company produces 330,000 vehicles in Indonesia each year.

“We will export 15 percent of our output,” Sudirman said.

Lotte Group to open 10 fast food restaurants in Jakarta

The Jakarta Post, Jakarta | Wed, 03/16/2011

South Korean firm Lotte Group said on Wednesday it will open 10 fast food restaurants in Greater Jakarta this year.

The restaurant, to be named Lotteria, will be established jointly with AJBS Group, which will owns 49 percent of its shares.

“In the next five years, we expect to open 100 Lotteria in Greater Jakarta,” Lotteria director Yi Su Il said.

The company said it planned to open 100 new branches across Greater Jakarta over the next five years.

Japan investment in RI will continue as scheduled despite tragedy: Minister

The Jakarta Post, Jakarta | Tue, 03/15/2011

Japan’s investment plans in Indonesia will continue as scheduled despite the recent massive earthquake and tsunami, a senior minister says.

That investment includes the US$24 billion Metropolitan Priority Area (MPA) infrastructure project in Greater Jakarta.

After speaking with Japan’s ambassador to Indonesia, Coordinating Minister for the Economy Hatta Rajasa said the “kick-off meeting” for the MPA project will be held on March 17 as scheduled.

Hatta said the powerful quake that struck Japan would not impede the recent investment commitments of a number of the country’s major companies.

“All of the programs that have been committed to by Japan will still be realized. So far, everything is still on track, nothing has been delayed. Geothermal, MRT, transportation projects, JBIC [Japan Bank for International Cooperation], all are still ongoing,” he said Monday.

A significant growth in investment helped push Indonesia’s economy to grow above expectations last year at 6.1 percent. Japan was the fourth largest foreign investor in Indonesia in 2010, with total investments worth $712.6 million.

The Japanese Chamber of Commerce’s delegates visited Indonesia last month and pledged to invest up to $60 billion for the development of several economic corridors in Java and Sumatra.

The investments will be directed to five main sectors: transportation and infrastructure, electricity, industrial areas, clean water and oil and gas, Japan Business Federation (Nippon Keidanren) chair Hiromasa Yonekura said.

Included in Japan’s investment commitments are Japanese car maker Astra Daihatsu Motor’s Rp 2.1 trillion plan to build a new factory in East Karawang, West Java, this year; Mitsubishi Corporation’s $18 billion investment program for various projects over the next five years; and the ¥2 trillion ($24 billion) deal between the Japanese government and private firms to finance the construction of infrastructure in Greater Jakarta and surrounding areas scheduled to commence in 2013.

“The key is Japan’s rehabilitation and reconciliation. We have suffered the same thing so we understand. And we appreciate Japan’s commitment to continue the MPA project,” Hatta said, referencing the devastating 2004 tsunami that killed more than 130,000 people in Aceh.

Last Friday, Japan was struck by a powerful 8.9-magnitude earthquake off the country’s northeast coast, which triggered a tsunami that has been estimated to have killed at least 10,000 people.

Edy Putra Irawady, the deputy to the coordinating minister for the Economy, said Japan might move some of its production factories overseas to Indonesia to ease business activity in the country in the midst of its post-disaster recovery.

“The officials said that Japan’s program and projects in Indonesia are still ongoing, in fact they are offering cooperation in the construction of trade facilities,” he said after meeting with Japanese authorities in Tokyo.

“The tsunami only affected the Sendai port and Yokohama — I was worried that the electricity shortage would affect production but it turns out that Japanese firms can move their production activities overseas, including to Indonesia,” Edy said.

Government officials, businessmen and economists have been worried about Indonesia’s investment prospects with Japan, saying it may take time for Japan’s economy to recover from the disaster, which heavily damaged basic infrastructure such as seaports, power plants and roads.

— JP/ Esther Samboh

Universities in Riau sign MoU with Jordanian university

Rizal Harahap, The Jakarta Post, Pekanbaru, Tue, 03/15/2011

Three universities in Riau Province hammered out a cooperation agreement in language education with Al Isra’ University in Amman, Jordan, on Tuesday.

The cooperation will include an exchange program of Indonesian language lecturers from three universities and Arabic language lecturers from the Jordanian counterpart.

Among the signatories of the MoU were Islamic University of Riau rector Detri Karya, Lancang Kuning University of Pekanbaru rector Sudi Fahmi, State Islamic Sultan Syarif Qasim University of Pekanbaru rector assistant Munzir Fahmi and Al Iqra’ University of Amman rector Nu’man Ahmad Al Khatib

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Saudi's STC to increase stake in Indonesia's NTS

Reuters, Sat Mar 12, 2011

• Saudi Telecom to raise stake in Indonesia's NTS
• To provide loans of $81 mln, followed by $290 mln

(Reuters) - Saudi Telecom Co (STC) said on Saturday it planned to rase its share in its affiliate NTS in Indonesia to 80 percent, and lend it more than $370 million, as it readies to expand in the Indonesian market.

Natrindo Telepon Selular (NTS Indonesia), now 51 percent owned by STC and 44 percent owned by Malaysia's Maxis Communications Bhd (MCB) , has set up a five-year plan to expand in Indonesia's telecom market, STC said in a bourse statement.

"Saudi Telecom has shown interest in taking this opportunity to increase its shares in (NTS) due to the growth prospects in the Indonesian economy," STC said.

"It agreed on Wednesday to give an initial loan of $81 million, followed by another loan of $290 million to be paid according to the firm's operational needs," the firm said.

The deal will cancel all the loans made to NTS by Maxis Communications, amounting to almost $412 million, and increase STC's stake to 80.1 percent from 51 percent.

Maxis Communications' share will fall to 14.9 percent from 44 percent, while the local partner will maintain a 5 percent stake.

The deal has yet to be approved by the Indonesian regulators.

NTS began its mobile phone services in 2008 and has more than 10 million customers, covering 400 cities in Indonesia, the statement added.

(Reporting by Asma Alsharif; Editing by Clarence Fernandez)

Japan grants rp1.8 billion for environmental project

Antara News, Thu, March 10 2011 

Jakarta (ANTARA News) - The Japanese embassy in Jakarta had given aid worth not less than 19.2 million yen (Rp1.8 billion) for two "Jakarta, Clean & Safe!" projects to enable the capital city to have a better environment.

The assistance was handed over by Ambassador Kojiro Shiojiri during the signing of a contract at the Japanese embassy in Jakarta on Wednesday.

"The Japanese government has given the grant for two environmental projects for Jakarta to the Nahdlatul Ulama disaster and climate change mitigation institute and the Community Foundation for Sustainable Peace and Welfare," a press release received by ANTARA said.

The first project is a technological promotion on waste disposal in West Jakarta and the second project is to increase the ability of waste collection and separation in the last waste disposal location in Bekasi, the release said.

"The first assistance covers equipment to increase waste processing at the existing compost facility and the dissemination of information from waste processing information and compost facilities to the people," the release said.

"The second assistance is the supply of equipment needed for the waste selection process efficiently in Bekasi," he said.

Editor: B Kunto Wibisono

20 Indonesian/Dutch players coming to RI for soccer event

The Jakarta Post, Jakarta | Wed, 03/09/2011

Twenty Indonesian soccer players of mixed descent from the Netherlands will arrive in Indonesia this Sunday for a special soccer-related event.

Former captain of the Netherlands
’ 2010 World Cup team Giovanni
van Bronckhorst

Among them is former captain of the Netherlands’ 2010 World Cup team Giovanni van Bronckhorst, the President’s special staffer for regional development and autonomy, Felix Wanggai, said Wednesday, as reported by antaranews.com.

They will be in Indonesia for 12 days for a program termed “Indonesia is my country”, which is aimed at motivating Indonesian players, Felix said.

All of the players are of Indonesian and Dutch descent and have played in competitions in Europe.

They will arrive in Indonesia this coming Sunday and leave on March 24. They will first go to Ambon before heading to Jakarta and then to Denpasar. During their visit, they will train young players, conduct workshops for local coaches and play in friendly competitions.

“They are also scheduled to meet President Susilo Bambang Yudhoyono," Felix said.

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Huawei gets Indonesia submarine deal

Global Telecoms Business, 07 March 2011

Huawei is to build a submarine cable across the Straits of Malacca between Malaysia and Indonesia

Huawei Marine Networks has been awarded a contract for the Batam-Dumai-Melaka submarine cable project linking Malaysia and Indonesia. Huawei will offer end-to-end turnkey submarine system solutions for the project.

The BDM project will consist of a cable system across the Straits of Malacca between Melaka, Malaysia and Dumai and Batam, Indonesia. The cable route will have eight pipeline and sea-cable crossings. The new system will provide bandwidth improvement for Malaysia and Indonesia.

The 300 kilometre cable will have a capacity of 80 gigabits a second. The project is expected to be completed by the fourth quarter of 2011.

Telekom Malaysia, Indonesia’s XL Axiata and infrastructure provider Moratel will build the system.

The advanced transmission technology and the support from Huawei’s parent, Global Marine Systems, will allow the system to bring high-capacity data communications to Malaysia and Indonesia in 2011, said Huawei Marine CFO, Zhou Jin. GTB

Mitsubishi to invest $18 billion in 4 projects

The Jakarta Post, Mon, 03/07/2011

Japan-based Mitsubishi Corporation will invest US$18 billion in Indonesia over the next five years for car production, infrastructure development, a liquefied natural gas (LNG) plant and ferronickel smelting, according to the Investment Coordinating Board (BKPM).

BKPM chairman Gita Wirjawan said on Friday that Mitsubishi was targeting to produce two million cars in Indonesia within five years. Mitsubishi’s car production was up almost 58 percent to 106,483 units in 2010, up from 61,735 in 2009.

As the factory construction would take one year, Mitsubishi would produce 500,000 cars a year beginning in 2012, Gita said.

He said Mitsubishi also planned to develop infrastructure projects in big cities called Metropolitan Priority Areas (MPA), including Jakarta.

Gita said part of the planned investment would be used to finance the construction of a LNG plant near the Donggi and Senoro gas fields in Central Sulawesi.

Mitsubishi is cooperating with state-owned oil and gas company PT Pertamina and private firm PT Medco Energi Internasional.

Gita said Mitsubishi was also taking part in the establishment of a ferronickel smelting plant in Teluk Weda, Halmahera, North Maluku, in cooperation with Eramet of France and state general mining company PT Aneka Tambang. (lfr)

House to open bid for new office building next week

The Jakarta Post, Jakarta | Mon, 03/07/2011

The House of Representatives will start next week the bidding process for the construction project of its new office building in Senayan, Central Jakarta.

A technical team comprising management and building-planning consultants are currently completing requirements for the bidding process to be submitted to the House secretariat general, House home affairs bureau deputy head Refrizal said Monday.

“As soon as the secretary-general receives [the required documents], the team will be instructed to open the bid,” he added as quoted by tempointeraktif.com.

Refrizal said among the requirements was a proposal for the standard minimum price, although he refused to disclose the amount.

He added the bid result would be announced mid May.

“Then in late May or early June we will hold the opening ceremony.”

USAID helping Borobudur`s rehabilitation with $100,000

Antara News, Mon, March 7 2011

Jakarta (ANTARA News) - US international aid agency USAID is providing 100,000 US dollars to UNESCO (United Nations Educational, Scientific and Cultural Organization) to rehabilitate the Borobudur temple compound in the aftermath of the recent Mount Merapi eruptions.

According to a US embassy`s press release received here Monday, the aid was given under the US-Indonesia Comprehensive Partnership.

USAID would provide support for the emergency cleanup, including retention of a large local workforce and purchase of equipment for the cleaning operation.

The Comprehensive Partnership is critical to the bilateral relationship and is founded on the shared values of freedom, pluralism, tolerance, democracy and respect for human rights.

Borobudur temple was temporarily closed to visitors late last year when concern about the longer-term effects of ash on the monument emerged.

Indonesia`s Ministry of Culture and Tourism along with the compound`s Site Authority had initiated emergency cleanup measures. Significant work needs to be done in order to reinvigorate tourism - a critical economic resource for the region.

"The support we are providing will help build the livelihoods of affected local communities through their involvement in the rehabilitation of the cultural tourism sector, which is critical to the area?s economy," said USAID Mission Director Walter North.

One of the most active volcanoes in the world, Mount Merapi is located less than 35 kilometers from Borobudur. A series of eruptions in October and November 2010 resulted in the deaths of 322 people and the displacement of more than 135,000 people. The Mount Merapi eruptions covered the Borobudur compound in 4.5 centimeters of volcanic ash.

The Borobudur compound was built between the eighth and ninth centuries using 57,000 cubic meters of volcanic stone. The monument is decorated with 2,672 relief panels and 504 statues. In 1991 it was declared a UNESCO World Heritage Site. It is one of the most popular tourist destinations in Indonesia and a critical economic resource for the local government.

Editor: Jafar M Sidik

@america: Cultural outreach to young foreigners

San Francisco Chronicle, Norimitsu Onishi, New York Times, Sunday, March 6, 2011

Go US: A visitor registers at @america , a hi-tech cultural center|
intended to enable Indonesians to interact with that country on their
own terms. JP/Ricky Yudhistira

PST Jakarta, Indonesia -- On the third floor of a shopping mall, around the corner from a Gap Kids and a Wedgwood china outlet, a new tenant is busily promoting what is perhaps the world's biggest brand: America.

The tenant, called @america, represents the U.S. government's first attempt at creating a full-fledged cultural center since the Sept. 11, 2001, attacks. A high-tech, interactive operation heralded as the digital-age successor to the venerable American Cultural Center, it is also U.S. public diplomacy's latest effort to win over young foreigners, especially in Muslim countries.

Thousands of high school and college students have been bused in from schools in Jakarta, the capital, and its outskirts since @america's opening in December. The technology on display - a giant, supercharged version of Google Earth called Liquid Galaxy, scores of iPads that are available to test, interactive monitors explaining Black History Month - thrilled the teenagers.

It was unclear whether the center had changed their perceptions of the United States, though.

Tech savvy: Young visitors browse
through their e-guides at the @america
center. JP/Ricky Yudhistira

"It doesn't matter what they think of the United States - 'Do you hate us? Do you love us? Are you somewhere in between?' " said Matt McGowan, 36, an American whose company, PT Ganesha Aggies Jaya, has been contracted to run the center.

The State Department's undersecretary for public diplomacy, Judith McHale, described @america as the "first of a new generation of American cultural centers."

Eva Zahrowati, 34, an English teacher at Islamic Senior High School No. 4, said her students had picked up bits of U.S. history during their visit.

She added, however, that the center's location - in one of Jakarta's most tightly guarded malls - created "obstacles" for Indonesians like her students. Visitors must undergo body scans and deposit their bags between two doors to enter @america, and the heavy security had left a bad taste.

"Is America afraid of us?" Zahrowati said.

The technology used by @america impressed Annisa Mutiara, 16, who said her dream was to go to a U.S. university. But Annisa was not swayed by what she assumed was the motivation behind the invitation to her school.

"I believe that America hates Muslims, and I'm a Muslim," she said. "I still believe that after coming here."

@america

Pacific Place Mall 3rd floor #325

Jl. Jendral Sudirman Kav.52-53

Kebayoran Baru, Central Jakarta, 12190

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Twenty Spanish companies to invest in RI

Antara News, Thu, March 3 2011

Jakarta (ANTARA News) - Twenty Spanish companies are ready to invest in Indonesia`s energy, electricity, transportation, telecommunications, infrastructure and manufacturing sectors, a minister said.

"They seriously intend to invest in Indonesia after they had studied the good investment prospects in the country as reflected by consistent economic growth," Coordinating Minister for Economic Affairs Hatta Rajasa said after chairing a coordination meeting on a state enterprise rightsizing program here on Thursday.

The plan to invest in Indonesia surfaced when Spanish State Secretary of Foreign Trade Alfredo Bonet, along with a Spanish business delegation, held bilateral talks with officials of the Indonesian Trade Ministry a few days ago, he said.

To enhance bilateral cooperation, the Spanish government and businessmen wanted the two countries to revise a number of agreements in the investment sector to ensure that the strategic partnership could be implemented well, he said.

Data from the Trade Ministry show two-way trade between Indonesia and Spain reached US$2.18 billion in the January-November 2010 period, a 12.6 percent increase compared to US$1.94 billion in the same period the year before.

Indonesia recorded a surplus of US$1.62 billion in its trade with Spain in the January-November 2010 period, up 9.60 percent from the same period in the previous year when the figure was US$1.48 billion.

Last year Spain ranked 14th as the destination of Indonesia`s exports. Indonesia`s exports to Spain included copper ores and concentrates, coal, briquettes, palm oil, natural rubber, industrial monocarboxylic fatty acids, video recording or reproducing apparatus.

Meanwhile, Indonesia imported aircraft (helicopters, aeroplanes), unwrought aluminium, new pneumatic tyres, transmission apparatus for radiotelephony, acyclis hydrocarbons, medicaments, and cigarette paper from Spain.

Editor: Heru

Two RI vehicles to participate in Shell Eco Marathon 2011

Antara News, Thu, March 3 2011

Yogyakarta (ANTARA News) - Gadjah Mada University (UGM)`s Semar Team is to enter two energy-efficient vehicles in the Shell Eco Marathon 2011 to be held at Malaysia`s Sepang Circuit on July 6-9 2011.

"The two energy efficient vehicles are the Semar Prototype and the Semar Urban," said Jayan Sentanuhady, adviser of Gadjah Mada University`s Semar Team, here Thursday.

The Semar Team was aiming to achieve maximum fuel efficiency and riding distance, Jayan said.

The engines of the energy efficient vehicles were designed for heat efficiency and maximal volume under certain balanced conditions, Jayan said.

"They are long stroke engines with high torque characteristics on the low rev to lower fuel consumption," Jayan, who is also a lecturer of Machine and Industry Engineering of Engineering Faculty of UGM, said.

According to Jayan, the Semar Prototype could cover 280 kilometers on one liter of gasoline.

The Semar Prototype was 2.8 meters long, 0.65 meters high, one meter wide and had a 1.6-meter long wheel base.

The chassis wa made of fiberglass with 2 millimeter thickness, while the engine was a 25 cc four-stroke single cylinder able to take the vehicle to its maximum velocity of 45 km per hour.

Meanwhile, the Semar Urban, which was designed as an energy efficient city car , was now still in a finishing process.

The Semar Urban used a 125 cc four-stroke engine, had double spark plugs which were ignited sequentially using an Electronic Control Unit, and consumed number 95 octane gasoline, Jayan said.

The Semar Urban`s dimensions were 2.3 meter long, 1.3 meter high, and 1.3 meter wide.

To compete in the upcoming competition, the Semar Prototype`s engine, which was 25 cc, would be replaced with a 115 cc engine to gain more power on an uphill road, Jayan said.

The rear swing arm, rear seats and steering paddock would be made separately, Jayan said, adding that the wheel house would be made outside the chassis to maximize its steering wheel turning angle until 45 degree.

With such transformation, Jayan hoped Semar Team could compete and perform well and win the competition.

Editor: Priyambodo RH

Mitsubishi to Invest Up to $20bn in Indonesia

Jakarta Globe, March 02, 2011

President Susilo Bambang Yudhoyono, right, welcoming the arrival of Mitsubishi
 Corp. CEO Ken Kobayashi and a delegation from the company at the presidential
 palace on Wednesday. The automobile company plans to invest up to $20 billion in
Indonesia. (AFP PHOTO)  

     

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Indonesia said on Wednesday that Japan's Mitsubishi Corp. planned to invest up to $20 billion in the Southeast Asian nation over 10 years in projects ranging from car making to infrastructure.

The Japanese conglomerate "will invest in several projects in Indonesia," said the head of Indonesia's Investment Coordinating Board, Gita Wirjawan, after meeting Mitsubishi president and chief executive Ken Kobayashi and President Susilo Bambang Yudhoyono.

Other projects Mitsubishi is interested in are the Jakarta area's airport railway project, construction of a sport utility vehicle (SUV) plant and construction of a power plant, officials said. Mitsubishi is already involved in Indonesia's petroleum, shipping, fertilizer and industrial machinery sectors.

Agence France Presse

ADB to funnel $500 m for RI geothermal power plants

Rangga D. Fadillah, The Jakarta Post, Jakarta | Wed, 03/02/2011

Indonesia will receive a US$500 million (Rp 4.4 trillion) loan from the Asian Development Bank (ADB) to build three geothermal-fired power plants with a total capacity of 165 megawatts, a senior official says. 

The secretary to the alternative and renewable energy and energy conservation director general at the Energy and Mineral Resources Ministry, Djajang Sukarna, said Wednesday that the power plants would be constructed in Sungaipenuh in Jambi, Karaha in West Java and Mataloko in East Nusa Tenggara.

“We’ll sign the deal in late 2011 and start construction of the power plants next year,” he said on the sidelines of a meeting with ADB and the National Development Planning Board (Bappenas) in Jakarta.

He said Pertamina Geothermal Energy (PGE), a subsidiary of state oil and gas firm Pertamina, would handle the upstream operation at the Sungaipenuh power plant, while state electricity company PT PLN would handle the downstream operation.

 “At the Karaha power plant, all businesses will be operated by PGE. For the Mataloko plant, PLN will take full control,” said Djajang.

Indonesia to build first wind farm in W Java

Bernama, 02-MAR-2011, 2 Mar, 2011

A local energy firm, Viron Energy, plans to build the country's first large-scale wind power plant in Sukabumi, West Java, this year, with a total capacity of 30 megawatts, Xinhua news agency reported, citing local media report Tuesday.

State-run power firm PLN renewable energy division head Muhammad Sofyan said last week that the Energy and Mineral Resources Ministry had approved the project and the company was waiting for the ministry to issue an official permit to begin construction.

"Next month we'll sign the contract with the developer. The construction will take at least a year," he said after a discussion on alternative energy for industries here Monday.

He said PLN would buy the electricity produced by the firm at 820 rupiah (about 9.2 US cents) per kilowatt-hour.

The price is very good. The cost of producing electricity from oil-based fuels can reach 2,400 rupiah per kilowatt-hour (about 27 cents)," Sofyan was quoted as saying by the Jakarta Post.

The location of the site is suitable for wind power generation as wind speed in the area is more than 6 meters per second, he said.

"The Sukabumi wind power plant will have a total generation capacity of 30 megawatts. But the first stage of the plant to be built will generate 10 megawatts," Sofyan said.

The director general for new and renewable energy and energy conservation at the ministry, Luluk Sumiarso, who also attended the discussion, said that this year would herald rapid development of Indonesia's renewable energy resources.

"Next month, in addition to the wind farm project, the government will also issue three letters ordering PLN to buy power from geothermal producers," he said, adding that he was happy with PLN's commitment to boost the use of alternative and renewable energy.

Many foreign and local investors expressed their interest in developing renewable energy in Indonesia, but the government would begin investing in projects in rural areas to lure private investors, Luluk said.

"We plan to build several solar power plants in rural areas, not only at the household scale, but also at the community scale. We hope the construction of the wind farm can stimulate further investment," he said.

Luluk said the Sukabumi project would be Indonesia's first large-scale wind-generated power plant.

PLN has expressed its commitment to developing renewable energy for electricity, particularly in the eastern part of the country where generating power from oil-based fuels cost Rp 3,000 per kilowatt-hour, Sofyan said.

In that part of the country, the prices of renewable energy are much more competitive, he emphasized.

PLN to build six power plants with foreign capital

Antara News, Tue, March 1 2011

Jakarta (ANTARA News) - State electricity company PLN is to build six power plants in 2011 with overseas investment totaling 3.006 billion US dollars, according to the company in a document prepared for a meeting with the parliament on Tuesday.

The investments are meant for the construction of the 2,000MW Indramayu thermal power plant (West Java), Hulu Lais thermal power plant (110MW) at Bengkalis, Riau province, Tulehu thermal power plant (20MW) in Ambon, Maluku province, Kotamobagu thermal power plant (three units, 80MW) in North Sulawesi, Sungai Penuh thermal power plant (110MW) in Jambi province and Mataloko thermal power plant (5MW) East Nusa Tenggara province.

PLN had proposed the construction of those power plants in its medium term overseas grant credit plan (DRPHLN-JM) for 2010-2014.

The Indramayu power plant will need the lion`s share of the investment of 2.971 billion US dollars, 2.525 billion US dollars is expected from overseas credit and the rest 446 million US dollars will be the counterpart funding.

Hululais will need a credit of 147 million US dollars, Tulehu needs 65 million US dollars, Kotamubago needs 110 million US dollars, Sungai Penuh requires 140 million US dollars and Mataloko needs 19 million US dollars.

PLN Finance Director Setio Anggoro Dewo said in the hearing with the House of Representatives` Commission VI that some of the projects are already in the stages of engineering study while some others in feasibility study.

He said Japan International Cooperation Agency (JICA) is to fund the Indramayu, Hulu Lais and Tulehu projects.

Kotamobagu will be funded by Kreditanstalt fur Wiederaufbau (KfW), a German government-owned development bank, based in Frankfurt, whereas Sungai Penuh and Mataloko will be financed by the Manila-based Asian Development Bank (ADB).

PLN for 2011 has allocated a capital expenditure of 77.398 trillion rupiahs and 62.13 trillion rupiahs for 2012.

For 2011 PLN breakdowns the capital expenditure of 35.87 trillion rupiahs for electricity generation, transmission 29.34 trillion rupiahs and distribution 12.186 trillion rupiahs.

On operational expenditure, PLN will spend 175.19 trillion rupiahs for fuels and lubricant and purchase of electricity from private companies.

Editor: Heru

French Firms Eye $10b of Investment in Indonesia

Jakarta Globe, Dion Bisara & Shirley Christie | February 25, 2011

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Indonesia could see upwards of $10 billion in investment from an unexpected source, ministers said, as French companies expressed interest in participating in infrastructure and energy projects.

Finance Minister Agus Martowardojo walks together with
French Economy, Finance and Industry Minister Christine
Lagarde before their meeting in Jakarta on Friday.
(AFP Photo/Bay Ismoyo)

French investment only played a minor role in the country in recent years. According to data from the Investment Coordinating Board (BKPM), its investment in Indonesia only amounted to about $307 million from 2006 to 2009.

Hatta Rajasa, the coordinating minister for the economy, met with French Minister for Economic Affairs, Finance and Industry Christine Lagarde and a delegation of 40 French business leaders on Friday. It is the first visit made by France at a ministerial level in 14 years.

He said French businessmen planned to invest $175 million in a project called the Bandung Metropolitan Railway, a network of railways connecting Cicalengka and Padalarang in the West Java city.

Hatta also said that French companies would participate in a $5 billion nickel smelter project in Halmahera, North Maluku. “They are also interested in geothermal and environmentally friendly industries,” he added.

In a separate announcement, Finance Minister Agus Martowardojo said Eramet, a French firm, would work with Japanese firm Mitsubishi and state-owned miner Aneka Tambang on the Halmahera project.

“There are two investment agreements that have materialized with the French in a short amount of time,” he said.

Lagarde confirmed the intention of French companies to boost their investment in Indonesia, although she declined to provide details.

The French chief executives and chairmen who met with Hatta came from sectors such as energy, transportation, water treatment, weather forecasting, railroad development, construction and retail, she said.

“Those companies are determined to improve investment,” she said, adding that the deals ranged in the billions of euros.

Last week, L’Oreal Group, a Paris-based cosmetics and beauty company, declared its plan to construct its largest factory in Indonesia. The new factory will be built at the Jababeka industrial estate in West Java and is expected to be operational by the end of this year.

The 200,000 square meter plant will be able to produce 300 million units annually by next year, with maximum production forecast at 500 million units.

Apart from boosting investment, Lagarde said, the French want to double the growth rate of trade between the two countries. She said the growth rate of trading, which is currently at 5 percent, is too small.

Last year the total value of two-way trade between the two countries stood at $2.5 billion.

France is the 23rd-largest importer of Indonesian commodities. The main exports to France include electrical transformers, static converters, furniture, cocoa butter, fat and oil.

Indonesia is the 13th-largest importer of French commodities, mainly bulldozers, excavators and other heavy machinery.

Indonesia registered a deficit of $762.9 million in trade with France in 2010. The deficit was spurred by declining exports of commodities and items such as natural rubber, paper pulp, footwear and radio and telephone parts.

France confirms plan to invest in Bandung railway project

Antara News, Fri, February 25 2011

Jakarta (ANTARA News) - France has confirmed its intention to invest 175 million US dollars in Bandung`s Metropolitan Railway project that will connect Padalarang and Cicalengka districts, West Java, a minister said.

"France has confirmed its intention to invest 175 million US dollars in the Padalarang-Cicalengka railway project that is designed to overcome the region`s chaotic traffic congestion problem," Coordinating Minister for Economic Affairs Hatta Rajasa said here Friday after a meeting with French Economic, Finance and Industry Minister Christine Lagarde.

Hatta Rajasa said France was also interested in urban development in Surabaya city, East Java.

On a national scale, France would like to cooperate with Indonesia in developing geothermal energy sources and in extreme climate monitoring efforts being managed by Indonesia`s Meteorology Climatology and Geophysics Agency (BMKG).

"Besides, they are also interested in geothermal energy and environment based industries which will be a government-to-government issue," he said.

France had also confirmed its plan to participate in a nickel smelter project and nickel processing industries in Halmahera, North Maluku, valued at around 5 billion US dollars, through a multinational company, Eramet.

To participate in the nickel smelter project, France was asking for an operation permit valid for up to 50 years while Indonesian government policy only allowed foreign companies to operate for 30 years only with the possibility of extending it every 10 years, Hatta said.

Hatta also hoped the French government would also contribute to the development of Indonesia`s economic regions with an investment of 10 billion US dollars.

Meanwhile, Minister Christine Lagarde said the French economic delegation she was leading was the first to come to Indonesia in the last 14 years. France wanted to step up its investment in and its economic cooperation with Indonesia through ministerial level talks.

"We have also met Vice President Boediono and discussed investment in energy, transportation, water conservation, climate monitoring, railroads, construction and retail companies such as Carrefour," she said.

The French economic delegation`s purpose was also to increase the volume of trade between the two countries which currently still stood at the relatively low figure of about 2.5 billion US dollars.

Editor: Heru