IBM extends IT package to small businesses

The Jakarta Post, Jakarta

Responding to the need for affordable communications technology, PT IBM Indonesia is reaching out to small and medium enterprises (SMEs) through a new version of its Express IT package.

Launched Thursday by the local unit of IBM Corporation, the fifth edition of Express offers a wide range of both software, hardware and related services at affordable prices to SMEs.

With component prices ranging from US$1,000 to $15,000, the new scheme will also offer investment-optimization and data-backup features, according to IBM Indonesia country manager Achirul Djamal.

Achirul added that Express was intended to answer the needs of SMEs for accessible technology at relatively affordable prices so as to enable them to compete with their larger competitors.

"The domestic IT market for SMEs currently stands at around US$1.6 billion, up 18 percent from last year. We hope Express will be able to capture around 20 percent of this market," said Achirul.

Currently, IBM Indonesia services around 2,500 SME clients in various industries, Achirul said.

First launched in 2002, Express, which is distributed by around 45 suppliers, accounts for more than 20 percent of IBM Indonesia's revenues.

Express was developed as part of a 10-year-old IBM Corporation worldwide business plan to tap the SME market.

Microsoft provides IT access to farmers

The Jakarta Post, Jakarta

PT Microsoft Indonesia, the local unit of U.S. software giant Microsoft Corp., will provide online services and IT training to 64,800 farmers in 15 provinces over the next two years.

As part of the plan, Microsoft donated US$937,700 to the ASEAN Foundation and Formasi Indonesia, a local NGO, on Tuesday to fund the establishment of 100 community-learning centers (CTC) by the end of September.

"According to the Central Statistics Agency (BPS), farmers account for 45 million people. If we can provide them with access to IT, the positive effects on the whole community will be significant," said Microsoft president director Tony Chen.

The CTCs are expected to not only facilitate the provision of training to the 64,800 targeted farmers, but also to provide Internet access to 220,000 people, and introduce IT to three million rural dwellers.

Fifty-eight of the new CTCs will be built in six provinces in Java, including Jakarta, Banten and West Java, while 42 others will be established in nine provinces outside Java, including North Sumatra, Lampung and Bali.

Chen said the effects would include an increase in farmers' incomes and a decrease in unemployment and migration to the big cities.

"By being given access to IT and being taught how to use it, farmers will be able to develop their businesses, better market their products, expand their markets and obtain all sorts of agricultural information."

The 100 new CTCs come on top of the 30 CTCs that Microsoft has already established in 12 provinces since 2003. By the end of last year, it had donated $1.6 million in cash and software worth $3 million under its "IT-for-Farmers" scheme.

"Young farmers showed great enthusiasm about technology during the previous program," Chen said.

Besides teaming up with the ASEAN Foundation and Formasi, a networking organization concerned with the interests of farmers and small enterprises, Microsoft has also been working with the Bogor Institute of Agriculture (IPB), which helped design the IT-for-Farmers program.

The IT penetration rate in Indonesia, according to Chen, is very low. There are currently only six million PCs for Indonesia's 240 million people, meaning that the penetration rate is only 2.4 percent. Internet penetration is somewhat better at close to 10 percent.

4Gas, Petrogas to jointly develop LNG terminal

The Jakarta Post, Jakarta

Rotterdam-based liquefied natural gas (LNG) terminal developer and operator 4Gas and local energy company PT Petrogas plan to build an LNG terminal in East Java following the signing of an agreement by the two firms on a feasibility study for the project.

PT Petrogas is wholly owned by the East Java provincial administration.

According to a release, the memorandum of understanding (MOU), signed on Tuesday, allows the two firms to conduct the joint feasibility study, which will also determine whether they should build a terrestrial (fixed-based) or floating LNG terminal in the gas-starved province.

"Following our LNG terminal projects in the UK, the Netherlands, France, Canada and the U.S., we are now concentrating on projects in Asia.

"And Indonesia is one of the largest economies in Asia, and has a lot of promise," 4Gas executive director and general counsel Harry Van Rietschoten said in the statement.

Abdul Muid, Petrogas president director, said, "This is a landmark agreement that will allow economic and industrial development in East Java to continue.

"Without additional gas from domestic and possibly foreign sources, scope for the expansion of our industries will be seriously curtailed."

East Java is one of the regions in the country that is vulnerable to a gas shortage, alongside East Kalimantan, East Java and North Sumatra.

Data from the Energy and Mineral Resources Ministry shows that the national gas balance for this year, which describes the gas supply and contractual gas demand position, will experience a deficit of 0.3 billion cubic feet (bcf).

Abdul said the planned terminal, which will also be able to be used to store natural gas supplied from overseas, would help minimize the risk of an energy crisis in East Java and other parts of Indonesia.

Kiev offering help to set up Jakarta`s subway system

Jakarta (ANTARA News) - The Kiev city administration in Ukraine has offered subway development assistance to the Jakarta city government which is planning to have a mass rapid transportation system, Kiev Deputy Mayor Sergiy Yaroslavovych Rudik said here Thursday.

Kiev which already has a subway system with 40 stations was ready to send experts to Jakarta to help Jakarta build a subway system, Rudik said after signing a memorandum of understanding on establishment of sister-city relations between Jakarta and Kiev.

The Kiev subway experts could help minimize mistakes in the selection of locations for Jakarta`s subway system, he said.

Rudik also invited Jakarta entrepreneurs to participate in several sport stadium construction projects in Kiev which would host the European Cup tournament in 2012.

Meanwhile, Jakarta Deputy Governor Fauzi Bowo who signed the MoU with Kiev said Jakarta and Kiev had intended to establish sister-city relations since 2005.

"But we have been able to realize the plan only now, in 2007," said Bowo who was impressed by the beauty of Kiev when he visited the Ukraine capital some time ago.

He said the sister-city cooperation would consist of programs to develop city transportation, city parks, small- and medium-scale businesses, culture and sports.

USAID awards Aceh highway project to S Korean, Indonesian firms

Jakarta (ANTARA News) - The United States Agency for International Development (USAID) on Thursday awarded the prime construction contract for completion of the Aceh West Coast Highway project to a partnership between South Korean and Indonesian firms.

The partnership between Ssangyong Engineering, Construction Co. Ltd. of South Korea and PT Hutama Karya of Indonesia will receive the US$108 million contract for the construction and rehabilitation of 115 km of road extending from Banda Aceh to Calang, the US Embassy said in a press statement.

The project is scheduled to be completed by February 2010.

"With this award, the Banda Aceh-Calang road project can now complete its journey from conceptualization to finalization," USAID Mission Director William M. Frej said.

Aceh bore the brunt of the December 26, 2004 earthquake and subsequent tsunami that devastated part of the province and killed more than 200,000 people.

Adhi Karya to increase stake in Jakarta Monorail project

Jakarta (ANTARA News) - PT Adhi Karya will increase its stake in the Jakarta Monorail (JM) project from 7.65 percent to 21.83 percent gradually, a company executive said.

"JM will issue new shares. Adhi Karya will purchase in stages 250,000 shares each having a nominal value of US$100," Kurnardi Gularso, Adhi Karya`s corporate secretary, told the Jakarta Stock Exchange here Thursday.

PT Adhi Karya would thus raise the value of its investment in JM by US$ 25 million to buy 25,000 shares, he said.

PT Adhi Karya would pay $15 million to purchase JM shares in the first stage after the Jakarta Monorail company obtains a guarantee from a financial institution.

The remaining $10 million would be paid in the second phase, Kurnardi said.

The stake of ITC which currently controls 91.02 percent of JM shares would eventually drop to 12.82 percent as ITC was not taking part in the purchase of JM`s additional shares.

Charoen Pokphand eyes acquisitions

Andi Haswidi, The Jakarta Post, Jakarta

The country's largest poultry feed and breeding stock producer, PT Charoen Pokphand Indonesia (CPI), is set to expand its business by making six corporate acquisitions this year, the company says.

"We have scheduled a shareholders meeting for June 27 at which we will request approval for a rights issue to raise funds to finance the acquisitions," CPI finance president Thomas Effendy said Tuesday in Jakarta.

Thomas said it was expected that the rights issue would raise approximately Rp 175.9 billion (about US$19.6 million), with Rp 165.2 billion of the total proceeds being used to finance the acquisitions.

He said the company would offer its shares at Rp 750, with 234.61 million shares being offered.

Following the rights issue, the company's total share capital will increase from Rp 140.8 billion previously to Rp 164.2 billion.

The six companies to be acquired include four poultry breeding operations, a feed mill company and a food distributor, all of which had signed acquisition agreements that are expected to be fully realized in July.

Under the acquisition plan, CPI will purchase 99.9 percent of PT Satwa Utama Raya for Rp 51.5 billion, 99.9 percent of PT Istana Satwa Borneo for Rp 26 billion, 99.9 percent of PT Vista Agung Kencana for Rp 24 billion, and 50 percent of PT Cipta Khatulistiwa Mandiri for Rp 9.3 billion.

CPI will also acquire 99.9 percent of two other companies, feed mill company PT Vista Grain and a distributor of Fiesta processed foods, PT Prima Food, for Rp 14.2 billion and Rp 23.4 billion, respectively.

Thomas said that the acquisitions were part of the company's efforts to achieve its target of Rp 7.7 trillion in this year's net sales, with the acquisitions themselves expecting to contribute Rp 350 billion.

"We are already targeting around Rp 7.35 trillion in net sales from our existing operations," he said.

Last year, the company booked total net sales of Rp 6.38 trillion and net operating profit of Rp 338.8 billion, up from Rp 5.54 trillion and Rp 284.7 billion, respectively, in 2005.

The company made a net profit of Rp 157.06 billion last year, almost four times the Rp 41.156 billion recorded in 2005.

"By the end of last year, our sales had increased 15.26 percent compared to 2005. The increase was due an 11.32 percent increase in sales of poultry feed, and a 17.59 percent increase in sales of day-old chicks. Increases of an average of 2.34 percent in poultry feed prices and 5.27 percent in the price of day-old chicks also contributed to the increase of sales revenue," Thomas said.

He explained that the company's total assets and equity as of the end of March had increased to Rp 3.16 trillion and Rp 805.08 trillion respectively from Rp 2.9 trillion and Rp 778.13 trillion at the end of December 2006.

To strengthen its financial position, Thomas said that CPI was planning to take out a syndicated loan of $100 million, which would be partly used for working capital, loan refinancing and expansion purposes.

As of the beginning of this month, the company's total outstanding loans stood at Rp 1.4 trillion.

CPI, which has been operating in Indonesia since 1972, is the local subsidiary of Charoen Pokphand, the largest business group in Thailand, with investments mainly in the agribusiness, aquaculture and agriculture fields. It has just recently entered the mobile telecoms industry with an investment in Hutchison's Tri.

Toll road users set for emissions tests

Adianto P. Simamora, The Jakarta Post, Jakarta

Toll road operator PT Citra Marga Nusaphala Persada (CMNP) plans to start testing the emission levels of private cars passing along the Sedyatmoko turnpike to Tanjung Priok on Wednesday.

The check, for which cars will be selected randomly, will run from 9 a.m. to 4 p.m.

"The operator plans to assess the emissions levels of 200 private cars. It's part of CMNP's services to toll road users as the checks will be free," Yusiono Anwar, head of the air pollution unit at the Jakarta Environment Management Board, told The Jakarta Post on Tuesday.

The cost of an emissions test ranges from Rp 30,000 (about US$3.61) to Rp 50,000 at auto garages.

The owners of cars that pass the test will be given a window sticker, but there will be no sanctions imposed on cars that do not meet the standard.

The emissions testers, which measure carbon monoxide (CO) and hydrocarbon (HC) levels, will be placed in pits along the road to prevent congestion.

A 2005 bylaw on air pollution requires private car owners to have their cars' emissions levels tested twice a year.

The CMNP is a member of the Clean Emission Appreciation (AEB), a 50-member forum organizing emissions tests without charge.

Members of the forum, such as PT Martina Berto in Pulogadung, East Jakarta, only allow vehicles displaying an "emissions-free" sticker to enter their parking areas.

The administration has repeatedly promised to punish the owners of cars that produce emissions in excess of a healthy level, but this is yet to happen.

The administration recently pledged to fully enforce emissions tests by September, a month before Governor Sutiyoso ends his term.

"Pak Sutiyoso is to sign the gubernatorial decree on emissions testing this month, thus, we can fully enforce it in September," Yusiono said.

The city agency will also assess 200 mechanics and 100 auto workshops next week in order ease the implementation of emissions tests in the capital.

The administration plans to certify 600 technicians and 300 auto workshops this year.

Experts have said that land transportation contributes up to 70 percent of air pollution in urban areas.

More than 2.5 million private vehicles hit the city's streets every day, many of them coming from outside Jakarta.

The draft gubernatorial decree stipulates that all private cars driven in the capital, including those from Bekasi, Depok, Tangerang and Bogor, must comply with the emissions standard set by the Jakarta administration.

The State Ministry of National Development Planning predicts that regular emission tests could reduce 50 percent of the CO level, 35 percent of the HC and 45 percent of particulate matter.

It says the emission tests would also reduce fuel use by 3 to 10 percent.

Malaysian firm builds rubber processing plant in Lampung

Way Kanan, Lampung (ANTARA News) - Malaysian-owned PT Merdec Siger Way Kanan is building a rubber processing plant at Gunung Sangkaran village in Way Kanan district, Lampung province, at a cost of Rp110 billion.

The rubber processing plant with a capacity of 30,000 tons per year is the third of the company`s such plants built in Indonesia, Datuk Abdul Karim, chief of the company`s board of commissioners, said here on Tuesday.

The plant, including a housing complex and a waste treatment unit will be built on 25 hectares of land, the company`s president director, Muhammad Nuh said.

PT Merdec now has rubber processing plants in Riau and South Sumatra.

Indonesia is one of the world`s biggest rubber producers.

Firms get awards for distribution success

The Jakarta Post, Jakarta

Eight firms have taken "best consumer goods distributor" awards for nine categories of products based on a survey conducted by Qasa Strategic Consulting.

In line with the findings of the survey, titled "Most Powerful Distribution Performance 2007", Unilever received two awards as best distributor in the soap and shampoo categories.

PT Indofood Sukses Makmur received an award in the best instant noodle distribution category, PT Bintang Toedjoe in the energy drinks category, PT HM Sampoerna in the cigarettes category, PT Santos Jaya Abadi in the coffee category, PT Dankos Farma in the colds and flu medicine category, PT Johnson Home Hygiene Product in the mosquito coil and lotion category, and PT Nestle Indonesia in the milk category.

The awards were based on a survey of 1,222 traditional large and small retailers in seven major cities -- Jakarta, Bandung, Semarang, Yogyakarta, Surabaya, Medan, and Makassar, a media statement said.

Qasa managing director Joko Wiyono said that the survey was aimed largely at traditional retailers as this segment accounted for some 70 percent of all goods distributed.

"The reason for focusing on traditional retailers is because most people rely on them for their everyday needs," explained Djoko.

The survey included interviews with retailers and product audits using such indicators as availability, payment method, number of display locations, promotional programs, frequency of salesman visits and complaint management.

Kalbe Farma investing in Singapore

Jakarta (ANTARA News) - The pharmaceutical company PT Kalbe Farma (KLBF) has acquired 100 percent of Singapore-based pharmaceutical firm Kalbe International Pte. Ltd (KI), a spokesman has said.

"PT Kalbe Farma has made an investment in Kalbe International to expand its business operations overseas," KLBF director Herman Widjaja told the Jakarta Stock Exchange here Monday.

Herman, however, did not disclose the acquisition value when KLBF bought KI on June 11, 2007.

Publicly-listed Kalbe Farma is engaged in the production and distribution of pharmaceutical products for both humans and animals. It comprises four divisions: pharmaceuticals, health food, packaging and distribution.

The company has over 10 subsidiaries, which are engaged in the pharmaceutical, health food, packaging and financial sectors. It has two production facilities in Bekasi, West Java

RI police to get three new Japan-made patrol boats

TOKYO (Antara): The Indonesian Police will have three new Japan-made patrol boats late this year and will use them to deal with crimes like piracy in Malacca Straits, where Japanese ships frequently pass the area, a Japanese official has said.

"The three motorboats will set sail to Indonesia next December or three months faster than schedule," Sumidagawa Shipyard Co. Ltd`s overseas development assistance project general manager K. Fujiwara said Monday.

Indonesian Ambassador Jusuf Anwar witnessed the launching of one of the three patrol boats at Sumidagawa Shipyard last Friday. Sumidagawa Shipyard Co. Ltd. is a manufacturer of patrol boats, ferries, and medium-class warships.

Each of the three patrol boats has 27 meter in length, 98 tons in dead weight, 30 knots in speed and can carry 12 personnel.

Meanwhile, Indonesian Police Educational and Security Office Body Commissioner General Imam Hariyatna said in a report made available here Monday that the three patrol boats were part of a follow-up to the Japanese government`s grant which had been implemented since 1962 when Japan provided Indonesian with war reparations.

Godrej eyeing FMCG acquisitions in China, Brazil, Indonesia

Hindustan Times

Mumbai, June 18 (PTI): The $1.7 billion Godrej Group is targeting at least two acquisitions every year in China, Indonesia and Brazil to expand its fast moving consumer goods (FMCG) business.

The group, which had recently taken over UK's Keyline, South Africa's Rapidol and home-grown Nutrine, is aiming at 25 per cent annual growth, of which five per cent is expected to come through acquisitions, the group's Chairman Adi Godrej told PTI here.

Acquisitions in these overseas markets will primarily be in the personal and household care segments, he said.

"Last year, our FMCG business grew by 30 per cent and we are aiming at at least two acquisitions a year to further fuel our growth," Godrej said.

Gorontalo may build nuclear power plant in 2008

Gorontalo, Gorontalo (ANTARA News) - Gorontalo will likely become Indonesia`s first province to have a nuclear power plant (PLTN) after it reached agreement with the Russian power company Raoues to set up a nuclear power plant in the province, an Indonesian official has said.

"It appeared that Gorontalo is quite serious in realizing it its plan to have a nuclear power plant. The plan will hopefully encourage other provinces to follow suit," Nuclear Energy Monitoring Agency (Bapeten) chairman Sukarman Aminojoyo said here Sunday.

"Another province that is ready to have a nuclear power plant is East Kalimantan, but Gorontalo has moved ahead of the province in making preparations for a nuclear power plant," he said.

Sukarman expressed hope that the 70 MW floating nuclear power plant in Gorontalo which will be built starting in 2008, would contribute to efforts at overcoming the prolonged power supply shortages in the province.

He also said that as of April 2007 Bapeten had already issued 12,243 permits to use nuclear technology, to 4,169 to industries, 4,814 to medical establishments, 3,222 to radiation protection personnel, and 38 to educational and university research programs.

Since 1979, Indonesia built nuclear reactors respectively in Yogyakarta, Bandung and Serpong.

President to inaugurate hygienic fish market, minister says

Ambon (ANTARA News) - Marine Affairs and Fisheries Minister Freddy Numbery confirmed that President Susilo Bambang Yudhoyono will inaugurate an hygienic fish market in Tantui area, Baguala sub-district, Ambon, on June 29.

"The construction of the market, which happens to be one of the mega projects in the city, has been completed. The head of state will dedicate it on the occasion of commemorating the 14th National Family Day in Ambon," he told the press here on Sunday.

Numbery, who visited Ambon for an inspection of some fishery projects in Maluku, said that besides an hygienic fish market, he will also inspect some fishery companies in Tual, Southeast Maluku, and in Benjina, Aru district.

As to hygienic fish market covering a 40x100 square meters plot of land was built for the efficient channeling of fish from the production centers to the market.

"The people coming to the hygienic fish market will not only want to buy fresh water fish caught by the fishermen but the fish could also be directly consumed with different flavors," said Numberi in the company of South Maluku Governor Karel Albert Ralahalu.

The market has ten 2x5 square meters aquariums for the display of various fish species, in additionto some cold storages and a small fish pond, he said.

Pertamina says it'll brush up to compete on global scale

The Jakarta Post, Jakarta

In a bid to improve its service quality, the state oil company has launched a certification program for its gas stations to enable them to compete with gas stations run by foreign operators.

"With the liberalization in the downstream industries, this sector has become more competitive due to the emergence of many new competitors," said Ari Soemarno, the CEO of Pertamina, in his speech at the launch of the Pertamina Pasti Pas certification program Saturday.

"The program aims to create an effective and efficient company so it can become one of the world's best," Ari said.

The Pasti Pas Program focuses on quality and quantity, staff, facilities and equipment, physical performance and public service.

Ari said that out of about 3,500 gas stations throughout the country, 80 had met the standard, 40 of which are in Jakarta.

"We are now focusing on the big cities first," Ari added.

Energy and Mineral Resources Minister Purnomo Yusgiantoro presided over the program at a Gatot Subroto gas station in Central Jakarta.

"We believe that Pertamina will be able to conquer the challenge because we are more experienced in the domestic market," said Purnomo.

However, the program is yet to be successful.

Despite Pertamina' efforts to improve services at their gas stations, many Jakarta vehicle owners prefer foreign gasoline companies because they believe they offer better handling for car engines. engines

Motorcyclist Urip, who had just filled his motorcycle, said that although in general Pertamina's gas stations were not that bad, in some places the operators often didn't return customers' change.

For Runi, a van owner, the arrival of foreign gas stations in Jakarta was good because it provided people with more choices in finding the best for their vehicles.

"I use Shell's gas stations because I think the quality of its gasoline is better," she said.

She added that many Indonesian gas stations sold diluted fuel.

"My car is an old one, so I have to be more careful in its maintenance, although the price of gas is more expensive," said Runi, a resident of Kemanggisan.

With the passing of a law in 2001, Pertamina lost its local monopoly on oil, fuel and gas. The is meant to allow reasonable, safe and transparent foreign businesses to operate in the industry.

The country now has two foreign gas companies, Shell and Petronas, operating several gas stations in the city. Shell became the first company to enter Indonesia's fuel business in 2005. It now has 10 gas stations in Greater Jakarta.

Jakarta has at least 2.5 million private cars, four million motorcycles and 250,000 taxis and buses. The 6,750,000 vehicles consume nearly seven million liters gasoline each day.

Indonesian Navy to get four new warships

Xinhua

Indonesian Navy will have four new warships from Russia, the Netherlands and South Korea, the Navy spokesman Leut. Colonel Toni Syaiful said Saturday.

"The ship made by South Korea to be expected to arrive in Indonesia at the end of 2007," the colonel was quoted by Antara News agency as saying.

Meanwhile, two Sigma-type ships from the Netherlands also to be expected to arrive here at the end of this year, he said.

The spokesman also said that all the crew members are in the Netherlands to master the ships

In order to pick up a Russian made sub-marine, some 60 naval officers are currently learning Russian language for three months, he added.

Nestle Indonesia renews warehousing and distribution contract with GAC Samudera Logistics

AMEinfo

GAC Samudera Logistics (GSL), a joint venture between UAE-based GAC and Samudera Indonesia Group, has announced its contract renewal with Nestlé Indonesia to manage the international food and beverage company's warehousing and distribution needs in the country.

Nestle has a long-standing relationship with GAC, going back to over a decade ago in the Middle East when GAC built the first third party logistics facility in the Gulf, now a fully-fledged GAC Logistics Park - from which GAC is still handling Nestle's regional supply chain requirements today.

Under the continuing arrangement, GSL will manage Nestlé's West Java, South Sumatra and West Kalimantan storage and inventory management requirements. As Nestlé has witnessed substantial volume growth and increasing distribution complexities since the existing agreement started in June 2005, GSL is now preparing for a more extensive scope of work for the global brand.

GSL Managing Director Kaare Thuesen says this new long-term exclusive contract is a boost to GSL's expanding logistics operations. The company recently invested USD4.4 million to expand its state-of-the art multi-user distribution centre in Lippo Cikarang in the Bekasi district, east of Jakarta. The extended facility will occupy a total of 9,000 square metres and offer an additional 12,000 pallet positions, increasing the current pallet capacity to 34,000.

He adds: 'We are confident that our expanded facilities at the distribution centre in Lippo Cikarang, coupled with our proven warehouse management techniques and advanced IT capabilities, will enable us to enhance Nestlé's supply chain and allow us to play an even bigger role in supporting their planned business growth.'

Nestlé Indonesia's Supply Chain Director, Wisman Djaja says: 'The Distribution Centre is strategic to our business. It is one of the key enablers for Nestlé Indonesia in its endeavour to provide the best service to its valuable customers. Most of our fast-growing modern channel customers are served from this DC. I am happy to see that GSL has been investing in training and development to grow talent, an important complementary to its excellent infrastructure. After all, talented employees set a company apart from its peers.'

Shell wants clarity on govt rules for sale of subsidized fuels

Ika Krismantari, The Jakarta Post, Jakarta

The local arm of Royal Dutch Shell Plc., PT Shell Indonesia, said Friday that it would require clarification of the government's rules on the sale of subsidized fuels before it would get involved in the sector.

"We welcome the government's plan to encourage new players in the subsidized fuel distribution business, and if the regulations turn out to be appropriate and provide a level playing field, we will be interested," the newly-appointed president director of Shell Indonesia, Darwin Silalahi, told reporters Friday on the sidelines of the launching of the company's corporate social responsibility program, Shell LiveWIRE.

Downstream Oil and Gas Regulatory Agency (BPH Migas) head Tubagus Haryono said recently that his agency was studying the possibility of relaxing the existing regulations so as to allow private sector firms to sell subsidized gasoline, which accounts for about 95 percent of the country's fuel sales.

Without changes to the regulations, it will be difficult for the new players to become involved in the distribution of subsidized fuels.

However, many in the industry doubt that the government is really serious about relaxing the regulations.

The government removed Pertamina's monopoly over the sale of oil-based fuels in 2005, but the state-owned oil and gas firm retains control over the subsidized-fuel market as, according to the government, the new entrants are unable to satisfy the set requirements. As a result, they are currently only allowed to sell non-subsidized high octane fuels.

Subsidized fuels include Premium gasoline, kerosene and diesel used by motorists, households and small businesses.

Besides waiting for clarification over the government's plans for the sale of subsidized fuels, Darwin said that Shell would also need to investigate further its economic feasibility, even though he acknowledged,"it would be a great opportunity for us to carve out a market beyond what we already have."

Shell currently sells non-subsidized fuels under the trade names Shell Super and Shell Super Extra, and high-quality Shell Diesel, in 10 Shell gas stations in Greater Jakarta.

Shell was the first foreign company to enter Indonesia's retail gasoline business. Following Shell's arrival, Malaysian state oil and gas firm Petroliam Nasional Bhd. (Petronas) has also set up shop here and currently operates two gas stations. It plans to open 21 more this year in Jakarta.

A number of global oil giants, including U.S.-based oil company Chevron, and France's oil giant, Total, are in the process of securing licenses from the government. Shell is also set to expand its business by establishing gas stations outside Java

Kumpulan Perangsang Eyes Water Project And More

SHAH ALAM, June 15 (Bernama) -- Water management company Kumpulan Perangsang Selangor Bhd (KPS) plans to grow its water business locally and abroad through its expertise in the sector, executive chairman Datuk Abdul Karim Munisar said today.

KPS, he added, is looking to secure the Langat 2 project, to migrate water from Pahang to Selangor initiated by the government, as well as develop water resources involving groundwater and surface water schemes.

"We have come out with a feasibility study. We also have the expertise and financial strength to undertake the Langat 2 project. We have placed our company well in securing the project," he told reporter after the company's annual general meeting here.

According to Abdul Karim, the company had worked on the Langat 2 project proposal since 1999 and has allocated about RM5 million to conduct the technical and feasibility studies.

Asked when the company will secure the Langat 2 project, he said that depends on the authorities.

"The water business contributes 60 per cent to the group's revenue and the company produces over 120 MLD (millions of litres per day). With the Langat 2 project, our water production will double," he added.

Abdul Karim said KPS' acquisition of Konsortium ABASS in May last year is expected to contribute more than RM100 million or 40 per cent to its revenue from this year.

ABASS is the water concessionaire for the Sungai Semenyih Water Supply Scheme.

KPS is also eyeing two infrastructure projects in West Sumatera, Indonesia - an independent hydro power plant (IPP) with 10 megawatt output capacity worth RM50 million and the 150-km first phase of a toll road project worth RM600 million.

"We are carrying out feasibility studies on the IPP project and the toll road between Pekan Baru and Dumai," he added.

The company is also working with another state government on a potential mining project, but he declined to elaborate.

Asked about market talk on KPS' plans to acquire a 70 per cent stake in Syarikat Bekalan Air Selangor (Syabas) which supplies water in the state, Abdul Karim said: "It is not proper for me to comment yet."

KPS posted a pre-tax profit of RM28.3 million in the financial year ended Dec 31, 2006 from a pre-tax loss of RM124 million in 2005 as revenue rose to RM378.64 million from RM308.88 million.

LIPI-Japan cooperation in research on earthquakes

Jakarta (ANTARA News) - The Indonesian Institute of Sciences (LIPI) and the Japan Society for Promotion of Science (JSPS) have expanded their cooperation to include a joint research on natural disasters.

"The cooperation between LIPI and JSPS was started in 1978 with the signing of an MoU by the Director General of JSPS, and it was later extended," LIPI Deputy Chief Prof Dr Lukman Harun told journalists here on Friday.

The MoU which was only aimed at enhancing the cooperation in the field of sciences, especially in developing basic sciences, was revised on August 29, 2006 by LIPI Chief Prof Dr Umar Anggara Jenie and JSPS President Motoyuki Ono, to include cooperation in dealing with earthquakes.

The sectors under the earthquake cooperation in West Java and Aceh include the application of the global positioning system (GPS) which involved Indonesian geotechnologists Dr Danny Hilman of LIPI, Dr Hasanuddin Z Abidin from the Bandung Institute of Technology (ITB) and Dr Wahyu Triyoso of ITB and some experts from Japan.

At present, the cooperation between LIPI and JSPS included some programs like joint projects in the field of multilateral programs on marine sciences, exchange of researchers, research work, and seminars.

Special Delivery

Berto Wedhatama, The Jakarta Post

State-owned PT Pos Indonesia president director Hana Suryana (right) speaks with Stephen Bird, the CEO of Citibank's Global Consumer Group for Asia-Pacific, after they signed a partnership agreement at PT Pos headquarters in Jakarta on Thursday.

Citibank is expanding its service network through the introduction of new loans that can be processed in only 30 minutes, and which will be available at all post offices throughout the archipelago. JP/R.

Fix quality, garment producers told

The Jakarta Post, Jakarta

Indonesia's garment producers have to improve productivity, service and, most importantly, quality, if they want win a bigger share of the world market, particularly in the United States, a consultant suggests.

"Price is no longer a major issue in the world garment market, but product quality is," Senada global marketing consultant Andreas Saldias Pozo told a media conference Thursday.

Senada recently conducted a two-week survey, which was financed by the U.S. Agency for International Development (USAID), on the prospects for Indonesian garment exports in the U.S. after the removal of the export quota for Chinese garments at the end of December 2008.

The study found that Indonesian manufacturers had the potential to grow sales in the U.S. market, but lacked efficiency.

Pozo said the survey showed that only half of Indonesia's garment producers had an efficiency rating of between 80 and 85 percent.

Pozo suggested that local garment manufacturers improve their competitiveness through improving workers' skills and reequipping.

The government has allocated Rp 255 billion (US$246 million) in subsidies and low-interest loans this year to help textile producers purchase new machinery.

"There is still more room for improvement to anticipate the global race with leader China, and others that have only recently become players, including Vietnam, following the lifting of the Chinese quota," said Pozo.

China, the world's leading garment supplier, exports its garments to the U.S. based on quotas extended by that country. The three-year quota system will expire on Dec. 31 next year.

Other major exporters are the Eastern European countries, Pakistan, Tunisia, Korea, Vietnam, Thailand, Bangladesh and Indonesia.

In addition, Pozo suggested that local garment manufacturers provide more services to buyers, and develop the home market to reduce their dependence on exports.

"Garment manufacturers need to provide more services to buyers, such as arranging on-time shipments and payment at the buyers' warehouses instead of the producers' warehouses," he said.

"In this face-to-face business, manufacturers also need to negotiate directly and build good relations with buyers in their home countries. Go to the U.S. and don't wait for buyers' agents to place orders," he added.

Indonesian garment producers, whose exports were worth 4.5 billion last year, ship about 47 percent of their total exports every year to the U.S. -- the world's second largest market after the E.U. -- but control only between 3 and 4 percent of the U.S. garment market, which is worth $75 billion a year, according to the study.

U.S. clothing companies that buy garments from Indonesia include Banana Republic, G.A.P. and ESPRIT, according to Pozo.

Major U.S. garment suppliers are Mexico, with 20.7 percent of the market, worth around $8.1 million, followed by Honduras with 13.4 percent and El Salvador with 5.05 percent.

Worldwide, the value of the garment trade stands at $300 billion, and is growing by 7-10 percent per year.

Gulf Petroleum to invest $6 M in Riau power plant

Jakarta (ANTARA News) - Gulf Petroleum Ltd., a consortium of Qatari and Bahrain companies, will invest US$6 million in a coal-fired power plant in Indragiri Hulu, Riau province.

The company would cooperate with PT Ridlatama Energi Group of Indonesia in building the power plant with a capacity of 2X300 megawatts, Abdul Aziz Addulaimi, the director of Gulf Petroleum Ltd., said after meeting Vice President Jusuf Kalla here Thursday.

PT Ridlatama Energi Group President Director Anang Widjiantoro said work on the construction of the power plant was expected to start late July 2007.

Hopefully, the power plant would be operational starting 2011, he said.

Ridlatama Energi Group is operating 11 coal fields in Indragiri Hulu.

The consortium is also looking into the possibility of investing in a power plant with a capacity of 2X150 negawatts in East Kutai, East Kalimantan.

Italy to scrap 9.3 mln euro Indonesian debt in exchange for humanitarian

Jakarta (ANTARA News) - Italy has agreed to cancel the equivalent of 9.32 mln usd worth of debt that Indonesia owes it on condition that Jakarta spends the same amount on six humanitarian projects in Aceh, an official said.

Aceh, the country's westernmost province, was devastated by a tsunami in December, 2004.

Coordinating Ministry for Economic Affairs spokesman, Mahendra Siregar, was quoted by XFN Asia as saying among the six projects approved by Italy are the building of a bridge and hospital and the reconstruction of a fishing harbour.

Last year, Italy cancelled 4.98 mln eur debt after Indonesia pledged it would spend the same amount on four projects in Aceh.

As of December 31, 2006, Indonesia's outstanding debt to Italy stood at 141.66 mln usd.

Jiangsu Eastern wins US$61 mln Indonesian contract

Jakarta (ANTARA News/Asia Pulse) - Chinese shipbuilder Jiangsu Eastern Shipyard has been awarded a contract to build two oil tankers worth US$61.49 million by Indonesia's state-run oil firm Pertamina.

Jiangsu is expected to deliver the two tankers in July 2010, Pertamina President Ari Soemarno said after signing the contract with Jiangsu executives here.

The tankers will be used to transport kerosene for a period of 25 years, he said.

City to build more recycling plants

The Jakarta Post, Jakarta

The city administration is planning to build another three recycling plants in the city next year, a city official said.

"We're planning to build the three recycling plants in Duri Kosambi (West Jakarta), Pulo Gebang (East Jakarta) and Marunda (North Jakarta)," sanitation agency head Eko Bharuna told reporters at City Hall on Wednesday.

Jakarta currently has only one recycling plant, located in Cakung Cilincing, North Jakarta. The plant has the capacity to process 500 tons of trash per day.

Eko said the city administration had provided 6 hectares of land at each of the sites in Duri Kosambi and Pulo Gebang, while a private company was in the process of acquiring 18 hectares of land in Marunda.

Eko was unable to recall the name of the private company acquiring the land.

"Around Rp 150 million (US$11,111) of investment will be needed to build a plant (using) simple composting technology for 1,000 tons of garbage a day," he said.

He invited the private sector to invest in the plants in Duri Kosambi and in Pulo Gebang.

"So far there have been five private companies interested in the projects," Eko said.

Eko said the administration would be careful in choosing investors for the plants after poor performance by PT Patriot Bekasi Bangkit, the company which has managed the preliminary dump in Bantar Gebang, Bekasi since 2004.

The administration is carrying out a tender to replace the company, whose contract ended last month. The company is still managing the site pending the appointment of a new operator.

Eko also said the city administration would encourage PT Wira Golfindo Sarana, which owns and runs the recycling plant in Cakung-Cilincing, to increase its capacity to 1,500 tons a day by the end of this year.

The city administration pays Rp 60,000 for each ton of garbage processed at the plant.

The plant uses new technology to process garbage into fertilizer and fuel, leaving zero excess waste at the end of the process.

Jakarta produces nearly 7,000 tons of garbage each day. More than 118 hectares of city land is occupied by garbage, but most waste is transported outside the city to Bantar Gebang.

Eko said that the administration was trying to improve the Bantar Gebang dump into a regionally integrated trash processing site.

He said he had also talked to Banten administration officials about building a similar plant in Nameng, Banten.

"The Banten administration has provided about 100 hectares of the 200 hectares of land needed for an integrated processing plant in Nameng," Eko said.

Humpuss to issue $400 M worth of bonds

Jakarta (ANTARA News) - Publicly-listed transportation firm PT Humpus Intermoda Transportasi Tbk is planning to issue US$400 million woth of bonds this year to meet capital expenditure needs until 2010.

The bonds would consist of US$350 million senior bonds due in eight years and US$50 million junior bonds due in five years, the company`s president director, Agus Darjanto, said on Wednesday.

He said the company`s capital expenditure needs were projected at US$100-115 million in each of the next three years.

"This year we will buy five ships worth US$159 million," he said.

Some of the funds needed to buy the ships would originate from the capital expenditure and the rest from the sale of two ships estimated worth US$36 million, he said.

In its general shareholders` meeting on Wednesday, the company decided to allocate Rp41.9 billion of its 2006 net profit to pay dividends, and to use the remaining Rp108.76 billion as retained earnings.

PT Pertamina awards $61.49 mln tanker project to Jiangsu

Jakarta (ANTARA News) - State oil and gas firm PT Pertamina said it has awarded a tanker building contract to Jiangsu Eastern Shipyard of China worth 61.49 mln usd.

Pertamina president Ari Soemarno said the firm expects to receive the tanker in July 2010 which will be used to transport crude oil.

"The trend in the (crude oil transportation) market is towards owning your own ships and Pertamina needs more ships to improve its negotiating position (for the price it pays for oil shipments). Another aim of this project is to improve our tanker facilities service and have a younger fleet of ships," he told XFN Asia.

At present Pertamina's own fleet of ships carry just 25 pct of the company's total oil needs with the rest transported by chartered vessels.

Leighton wins $835m Indo mining contracts

June 13, 2007, The Australian Business

CONSTRUCTION giant Leighton Holdings says it has been awarded two new mining contracts in Indonesia worth close to $US700 million ($834.38 million).

The contracts are for the provision of mining services at two coal mines in South Kalimantan and East Kalimantan.

The largest of the two contracts is a six-year deal with PT Wahana Baratama Mining worth $US610 million, for mining services at the Wahana coal mine in South Kalimantan.

It is the largest mining project Leighton Asia (Southern) has ever been awarded, the company said.

The second contract is a two-year deal with PT Multi Harapan Utama (MHU) worth $US70 million at its Samarinda coal mine in East Kalimantan.

Leighton said it would provide land clearing, drill and blasting services, the loading and hauling of overburden, coal mining, and the haulage of coal to port.

Managing director of Leighton Asia (Southern) David Savage said the company was well placed to benefit from the continued strength of the resources market.

“We have built a reputation in the Indonesian mining industry for efficient project delivery, and as a result we are in the fortunate position of being able to capitalise on the ongoing growth in this market,” Mr Savage said.

“These projects take our work in hand in Indonesia to $US800 million, underwriting our business there for the next few years and providing us with a solid platform for future growth.”

Leighton said it was working on six other mines in Indonesia and would be mining over nine million tonnes per annum.

Leighton Asia (Southern) is the group's operating company covering operations in Malaysia, Brunei, Sri Lanka, Indonesia, India and the Arabian Gulf.

By 1504 AEST, Leighton shares dipped 78 cents to $43.49.

Govt encouraging investors to build cement factories outside Java

Jakarta (ANTARA News) - The government is encouraging investors to set up cement factories outside Java on the ground that demand for the commodity in the other islands is high but often not met, an Industry Ministry official said.

Unless there was new investment in the cement production sector in 2007-2008, Indonesia would face a cement shortage in 2011, Agus Tjahajana, the ministry`s secretary general, told the 10th international conference on cement (Intercem) here Wednesday.

"Assuming that demand for cement grows by 8 percent annually, Indonesia`s cement production capacity in 2011 will not grow beyond today`s figure, if investors do not set up new cement factories," he said.

The production capacity of the national cement industry in January-May 2007 reached 47 million tons compared to 31 million tons in a corresponding period in 2006.

Agus predicted demand for cement in the next few years would grow at a faster rate than in the January-May period of 2007 when the figure was 8.1 percent.

"In 2005, demand for cement grew by 5.2 percent but due to the world oil price hikes, it only grew by 2.1 percent in 2006. Demand for cement has already reached 8.1 percent in the January-May period of this year," he said.

Data compiled by the Indonesian Cement Association (ASI) showed demand for cement in the first five months of this year stood at 12.83 million tons, rising from 11.87 million tons in 2006.

Agus said demand for cement outside Java would still rise in the future.

In 2006, demand for cement in Sumatra grew by 8.1 percent, in Kalimantan 5.3 percent, Sulawesi 10.9 percent, Maluku 8.6 percent and Papua 8.6 percent.

In Java, however, demand for cement was recorded at minus 2 percent last year.

Indonesia has nine cement factories but most of them are located in Java.

FajarPaper expands capacity, ups sales

The Jakarta Post

JAKARTA: PT Fajar Surya Wisesa, a publicly listed producer of recycled packaging paper, has announced that its sales surged by 55 percent to Rp 992 billion (US$109 million) in the first five months from the same period last year.

The sales boost was attributable to a 40 percent increase in production capacity of sack packaging FajarPaper from 500,000 tons to 700,000 tons to satisfy rising domestic and international demand.

"We have secured orders from Asia, the Middle East and Europe as demand for sack paper has risen significantly," said president director Winarko Sulistyo.

Fajar Surya managed to generate $20 million in pre-tax earnings for the first five months, up 81 percent from the same period of last year.

Winarko said that as the company's capacity had increased, its total sales were expected to increase by 47 percent to Rp 2.5 trillion this year from last year's Rp 1.7 trillion.