Eastman to sell 2 European plants for about $330M

TriCities.com, Saturday, Dec 22, 2007 - 11:13 PM

KINGSPORT, Tenn. (AP) - Eastman Chemical Co. has agreed to sell two European chemical plants to Indonesia's Indorama Group for about $330 million.

The deal is expected to close in the first quarter of next year. The plants in Britain and the Netherlands make synthetic fibers for food and drink containers. The Netherlands plant also makes an acid used to make polyester coatings and resins.

Eastman has previously announced sale of a Spanish plant.

The Kingsport-based company says the financial results for all the European plants sold will be recorded as discontinued operations in the fourth quarter.

High interest among Singaporeans in visiting Kerinci region

Jambi (ANTARA News) - Singaporean tourists show high interest in visiting Indonesia`s Jambi province, especially Kerinci district as its main tourist destination, the province`s deputy governor said.

However, Singaporean holiday makers had still asked about transportation means at a recent event to promote Kerinci, Jambi Deputy Governor Antony Zeidra Abidin said here Saturday.

The number of foreign tourists visiting Kerinci was still small due to inadequate access to the district, he said, adding that foreign tourists came to Kerinci usually through Padang, West Sumatra (some 200 kilometers from Kerinci).

In an effort to increase the number of foreign tourists to Jambi, the provincial administration was planning to cooperate with tour and travel operators who were expected to help promote tourist objects in Kerinci.

Singapore was expected to be Jambi`s main tourism market as the island state`s geographic location was relatively close to the province, he said.

Thus, Jambi`s provincial administration was encouraging Kerinci`s district administration to continue developing natural tourist sites like Lake Kerinci, Mount Kerinci, Lake Gunung Tujuh, the Semurup baths and the Telun Berasap Kayu Aro waterfall.

The district administration was also expected to soon complete work to extend the runway of Kerinci district`s Depati Parbo airport from 1,400 meters to 1,700 meters so that it could also accommodate wide-body aircraft.

The Kerinci district administration would begin operating the airport in 2008. Riau Airlines was expected to conduct direct flights from Kerinci to Singapore vice versa, he said.

In support of the land transportation system, the district administration had allocated billions of rupiahs to construct a by-pass road from Jambi City to Kerinci among other things.

The 419-kilometer trip from Jambi City to Kerinci now takes between 10 hours and 11 hours on winding roads through the Kerinci Seblat National Park.

Japan to accept 1,000 nurses, care workers from Indonesia: report

Tokyo (ANTARA News) - Japan will accept 1,000 nurses and health care workers from Indonesia from as early as next year under a free trade pact to help ease the country's shortage of such staff, a report said Saturday.

The move will mark the first time Japan has brought in foreign nurses and care workers on a full-time basis, the Nikkei business daily was quoted by AFP as saying.

For two years from April, Japan will annually accept 200 licensed nurses and 300 certified care workers, the newspaper said.

If the programme is well received, the figures may be increased for the third year, the Nikkei said.

Nurses will be limited to staying for three years and care workers for four years on their Indonesian certificates and licences. But they can extend their stay by passing Japanese nursing exams or receiving Japanese caregivers certificates.

The workers will work as assistants at hospitals and nursing care facilities after receiving language training.

The economic pact, signed in August, has already been approved in Indonesia, while Japan's government submitted the measure to the legislature earlier this month with an eye to approval in the current Diet session or early next year.

A similar effort is underway to employ workers from the Philippines, but the economic partnership agreement with that country has yet to take effect, the paper added.

The Japanese health ministry estimates the nation needs 40,000 more nurses, while the shortage is estimated to reach 450,000 to 550,000 by 2014, the Nikkei said.

All Bengkulu residents to take part in earthquake simulation

Bengkulu (ANTARA News) - All Bengkulu residents will on Sunday morning take part in an earth-quake and tsunami emergency simulation organized by provincial authorities, the provincial governor said.

The fourth simulation which was aimed at preparing the public of eartquake-prone Bengkulu province for the real thing, will be held at 06.00 a.m. on Sunday, Agusrin Maryono Najamuddin, Bengkulu`s governor said here Saturday.

"The fourth simulation will be held in nine districts and we hope that all citizens will take part in the drill, so that it will be like the real thing," he said.

One month ago, on Sunday November 23, the Indonesian Institute of Sciences (LIPI) in cooperation with the Bengkulu city administration conducted a tsunami-emergency drill involving the inhabitants of several villages including Lempuing.

Simulations were also conducted on December 10 and 15 by the provincial and Bengkulu city administrations.

The provincial government decided to hold the simulation in response to widespread rumors that an earthquake measuring 8.5 on the Richter Scale followed by tsunami will happen on December 23, 2007.

Indonesia`s tsunami reconstruction chief lauds progress

Jakarta (ANTARA News) - When Kuntoro Mangkusubroto dashed in to lead reconstruction of Indonesia's Aceh in the wake of the 2004 Indian Ocean tsunami, it was with little immediate help from his own government.

Despite leading an organisation set up by presidential decree in May 2005, Mangkusubroto was forced to go cap in hand to Australia's aid agency for the money to fly his team out to the flattened provincial capital of Banda Aceh.

"We were so grateful to the Australians, but at the same time it was very shameful," Mangkusubroto told AFP in an interview at the modern Jakarta office of the Aceh-Nias reconstruction agency, known as BRR.

A former academic and one-time energy minister, Mangkusubroto has never shied away from robust criticism of his government.

With 168,000 dead in Aceh, and the added disaster of a massive earthquake on desperately poor Nias island, the grinding pace of Indonesia's bureaucracy was always going to hinder the channelling of billions of dollars of foreign aid.

A generation-long separatist war and an entrenched culture of what he calls "pathological" corruption throughout the Indonesian state were not going to help either.

And so it was with an obvious sense of satisfaction that Mangkusubroto ticked off his organisation's list of successes recently, three years after the December 26 tragedy, one of the worst natural disasters in modern history.

Of the BRR's target to build 120,000 new houses, Mangkusubroto said more than 100,000 have been completed and the remaining homes will be finished by April 2008, three months ahead of schedule.

A project to train teachers to replace the 2,500 who died in 2004 has seen startling success, with more than 20,000 trained. However, less than half the 2,000 schools planned have been built so far.

As of October, the BRR has overseen the building of 216 bridges, more than 2,000 kilometres (1,200 miles) of roads, 17 sea ports and 10 airports and air strips.

The key to BRR's success has been its full authority over reconstruction -- a fact bitterly resisted at the start by others in the Indonesian government, Mangkusubroto said.

"We didn't have that kind of organisation before in Indonesia," he said.

"We would have to explain this to Jakarta people, that this organisation has full authority, so don't try to block us."

This approach often irritated several ministers who could see their own power eroding, who would often shoot back with responses such as "Okay, Aceh is yours, Indonesia is mine," Mangkusubroto recounted.

Airport plants trees

Multa Fidrus, The Jakarta Post, Tangerang

Soekarno-Hatta International Airport operator PT Angkasa Pura II started planting trees Saturday as part of a nationwide re-greening campaign.

In cooperation with the alumni association of the University of Indonesia, the company has plans to re-landscape 25 hectares at the airport and call it "Angkasa Pura II Forest".

"We've set a goal of planting 10 million trees ... to help (mitigate) climate change," said the company's president director Edi Haryoto.

He said the program was the brainchild of Sofyan Djalil, state minister for small and medium enterprises (center, planting a tree), who is also chairman of the alumni association.

The program began with some 36,000 saplings representing nearly one thousand different tree species.

While lawns and groves are often associated with exclusive clubs and housing estates, Sofyan spoke enthusiastically about a program that was for everyone. "There will be more than 500 million trees growing in the country in the next few years if we all start by planting at least one tree now.

"This initiative can help us combat global warming and reduce its impact."

Meanwhile, Edi said the green zones at the airport could serve the same function as a public park and would be suitable for jogging and bicycling.

Cepu Mobil teams up with NGOs to conduct community development

The Jakarta Post, Jakarta

Mobil Cepu limited (MCL), a unit of the U.S energy giant ExxonMobil, is cooperating with a number of local non-governmental organizations in community development projects near its oil concession area in Bojonegoro regency.

The NGOs include the Women Empowerment Agency (LP2M), the Garis Tepi public learning center, Baitul Qirath micro finance institution, and the Republika public health service.

LP2M, for example, received a revolving fund of Rp 100 million from Mobil Cepu in December last year to empower women in the regency.

LP2M's head of Business Division Yesi Kumalasari said last week a part of the funds had been channeled to 26 working groups consisting of local businesswomen from nine villages in regency.

Each group receives up to Rp 5 million in low interest loans, with a 12-month installment.

"Many of them are producing snacks and developing tailoring businesses," Yesi told reporters during a media visit Monday.

Yesi said the revolving fund had been able to help the small businesses and most of them had been able to repay their loans on time.

"With the loan interest, we have managed to increase the amount of the revolving fund from Rp 100 million to Rp 115 million," she said.

She said LP2M planned to ask for more revolving funds from MCL next year so that more women in the regency could use the money to expand their business.

Instead of funds, the learning center got 20 computers and language laboratory equipment for its English language courses in Semengko village.

ExxonMobil Media Relations Coordinator Nuraini Razak said she was happy with the progress of the community development projects carried out in cooperation with the NGOs.

"We hope the projects will improve living standards of the local residents," she said. "We prefer to give them fishing rods instead of fish."

However, she refused to elaborate on the total amount of budget allotted by the company to establish and maintain the programs.

Exxon and its partner Pertamina were awarded a 30-year contract -- until 2034 -- to develop the Cepu oil field which straddles the border between Central and East Java. The oil block has estimated reserves of about 600 million barrels of oil and 1.7 trillion cubic feet of gas.

At its peak, the oil block produced up to 165,000 barrels per day, equivalent to some 20 percent of Indonesia's total production.

Upstream oil and gas regulator BP Migas has urged Exxon and Pertamina to speed up production from the US$2.6 billion oil block in 2008 instead of 2009 as initially planned. (dic)

Govt approves Adhi Karya's rights issue plan

The Jakarta Post, Jakarta

The government has approved the plan of state-owned construction firm PT Adhi Karya to launch a rights issue and will propose it to the House of Representatives in early 2008.

"The government's privatization committee has agreed on the plan, and we will determine the time of the rights issue after the House approves the plan," State Minister for State Enterprises Sofyan Djalil was quoted as saying by detikfinance.com news portal Wednesday.

He said the government, as the controlling stakeholder, was still considering whether it would use its rights to buy the shares.

"We can't tell you now, but the point is that we have agreed on Adhi Karya's rights issue so that the company can further develop its business," Sofyan said.

Adhi Karya president director Saiful Imam has said that his company actually had planned to conduct the rights issue this year, but had delayed it as the government did not endorse the plan at the time.

He said that the company had not decided how many new shares to issue, but it was planning to raise around Rp 600 billion (US$ 63 million).

"The rights share may account for 15-20 percent of the company's total shares," Saiful said. "But the number of the rights shares to be issued may be lower than that if the price is high."

The company is expecting to increase its net profit by 41.7 percent from an estimated Rp 120.1 billion this year to Rp 170.2 billion in 2008.

It is targeting next year to finish projects worth Rp 13.76 trillion, including Rp 8 trillion for new projects and Rp 5.76 trillion for on-going projects. (ndr)

France donates center to manage natural disasters

Syofiardi Bachyul Jb, The Jakarta Post, Padang

The French government on Tuesday donated a natural disaster crisis center to the West Sumatra provincial administration, Paul Delavenne of the French Embassy to Indonesia said.

Delavenne is civipol program director and he handed the center to the secretary of the West Sumatra provincial administration, Yohannes Dahlan.

It was the fourth batch of aid provided to Indonesia from France, with a total of 5.1 million Euro pledged since July, 2005.

France has also provided aid to the National Disaster Mitigation Coordination Board, Jakarta's provincial administration and Nanggroe Aceh Darussalam provincial administration.

Delavenne said the aid could be used by the Indonesian government to develop its disaster management programs.

"We do hope we can help develop other regions in Indonesia as well," he Delavenne said.

He said his government selected Bakornas and the three provinces because these regions were seriously affected by natural disasters, especially tsunamis.

Delavenne's government has provided rescue equipment and disaster management training courses to Indonesian rescue teams.

"We are very happy the three regions have accepted and supported this program well," he said.

France has allocated Rp 7 billion to establish the crisis center in West Sumatra, which would be equipped with effective tools to support the administration in better managing disasters.

"The modern tools will be useless if they are not supported by skilled persons," Delavenne said.

"That's why we hope the government will choose the right men or a special board to operate them."

The crisis center uses a computerized system to provide accurate information on natural disasters. In case of a quake or tsunami, the system would remain operational because it uses multi-layered back-up system, Delavenne said.

Information is collected from the internet and a free-of-charge telephone link.

The computerized system has two back-up modes. The first back-up system uses a Global System for Mobile Communications (GSM) link, before a third and final system is relied on, which uses a satellite facility.

Yohannes Dahlan thanked the French government for the provision of funds and for the "modern and useful equipment for his region".

He said the administration would operate the facility as effectively as possible for the sake of all residents.

Yohannes also said he would establish an effective cooperation with related institutions, including local police and disaster management offices.

RI eyes $6.4b from tourism in 2008

Ridwan Max Sijabat, The Jakarta Post, Jakarta

The government said it hopes to bring in US$ 6.4 billion in foreign exchange from an estimated seven million foreign tourists expected next year.

The government has set these targets for its 2008 visit Indonesia campaign.

"We haven't reached our target yet for the year 2007, but the number of foreign visitors arriving in the first 10 months of this year was up, compared to last year's figures," Thamrin Bhiwana Bachri, director general for marketing at the Culture and Tourism Ministry told The Jakarta Post on Friday.

"Arrivals were increasing at around 14.4 percent from January to October this year, compared to the same period in 2006."

Thamrin said ASEAN countries, especially Malaysia and Singapore, had been the focus for Indonesia's tourism sector over the last 10 to 15 years.

He said these two countries remained Indonesia's major markets.

"Their proximity, the high amount of flights available and the similar customs and food are the main factors that stimulate the interest of people from these countries to visit Indonesia," he said.

But the government needed to develop tourist attractions in regions by improving facilities and access, Thamrin said.

"We have many other interesting places and cultures other than Bali," he said.

"But those places don't have good infrastructure or facilities able to accommodate tourist needs, like convenient hotels and resorts, clean public toilets, well-managed airports or easy access to tourist attractions."

Bali remains a favorite tourist destination, with foreign arrivals up 40 percent this year.

The "Visit Indonesia Year 2008" campaign, which would be launched by President Susilo Bambang Yudhoyono on Jan. 1, is set to stage 100 international-scale events and cultural festivals.

It has been timed to coincide with the "World Culture Forum Asia & Pacific" in New Delhi in January 2008.

Legislator Ade Daud Nasution from Crescent Star Party (PBB) is the owner of several hotels in Bali and Riau Islands and said the government must continue developing the Riau archipelago.

He said this was vital in order to win the tourism competition against Singapore and Malaysia and to attract tourists from China, the Middle East and Japan.

"We have to develop an integrated tourist resort on Bintan, Galang and Batam islands, which are located in a strategic position on the Malacca Straits," he told the Post.

"The government could invite foreign investors to take part in the integrated tourist resort project if it can not do this alone," Ade said.

The government said recently Indonesia's economic growth in the coming years could depend on the tourism sector if the Bintan Bay Treasure integrated resort was realized.

The resort is projected to compete with Singapore and Malaysia.

Ade said Malaysia's Landmarks Bhd. had confirmed its readiness to take part in the project in Bintan and many local businessmen had also shown an interest.

Hasto Kristiyanto from the Indonesian Democratic Party of Struggle (PDI-P) said the government would need to invest a serious sum if it wanted to make the Riau archipelago a viable tourist destination in Southeast Asia.

"Despite having a Muslim majority, Indonesia should not be a hypocrite," Hasto said.

"It should learn more from Malaysia and Singapore and see how they have developed their tourism industries," he said. (rff)

PT Bukaka to build mini hydro power plants in Jambi

Jambi (ANTARA News) - Engineering company PT Bukaka Teknik Utama (BTU) plans to build a number of mini hydro-power plants for the Kerinci community in Jambi province which is prone to frequent power shortages.

The power plants would have an average capacity of 1 KV, the company`s hydro-power director, Heru Husaini, said on Friday.

PT Bukaka would donate the mini hydro-power plants to the Kerinci community as a token of its social responsibility. It had also built a hydro-power plant in Poso, Central Sulawesi, he said.

He said the presence of the mini power plants would not reduce the significance of two hydro-power plants being built in Muara Empat and Batang Merangin sub districts in Jambi with a combined capacity of 180 MW.

The construction of the two power plants which cost Rp1.2 trillion would be completed in 2010 or 2011, he said.

RI to open trade promotion center in Shanghai

Beijing (ANTARA News) - The Trade Ministry is planning to open an Indonesian Trade Promotion Center (ITPC) in Shanghai, China, in 2008 to benefit from the increasing trade opportunities between the two countries.

"According to a plan, the Trade Ministry will open an ITPC in Shanghai next year in anticipation of Indonesia`s participation in a World Expo to be held in the city," Indonesian Ambassador to China Sudrajat said on Friday.

The two countries intended to increase their two-way trade to US$30 billion by 2010 under a strategic partnership signed by Chinese President Hu Jintao and his Indonesian counterpart, Susilo Bambang Yudhoyono in 2005.

Sudrajat said the two nations needed to work harder to achieve the target.

Two-way trade between China and Indonesia has shown an upward trend in recent years. It stood at US$13.5 billion in 2004 and increased to US$16.8 billion in 2005.

In 2005, Indonesia was China`s 19th biggest export destination with a total value of US$8.35 billion or 1.11 percent of its total exports.

Meanwhile, China`s imports from Indonesia in 2005 were valued at US$8.43 billion or 1.28 percent of its total imports, making Indonesia the 18th biggest supplier of goods to China.

Sudrajat said Indonesia`s participation in World Expo 2010 was of great significance to show the world community the progress the country had made in the technological sector.

The expo would be the biggest ever held, he said.

To date, 149 countries and 18 international organizations had confirmed their plans to take part in the expo, the event`s commissioner general, Hua Junduo, said recently.

Indonesia`s Excelcom agrees $424 mln bank loans

Jakarta (ANTARA News) - Indonesia's third-biggest mobile phone operator, PT Excelcomindo Pratama Tbk, has agreed loans of 4 trillion rupiah ($424.4 million) from Indonesia's largest lender, PT Bank Mandiri Tbk.

The mobile phone firm, which is a 67 percent owned unit of Telecom Malaysia, said it in a statement that it signed the agreement on Wednesday but not elaborate on what the money would be used for.

Emirates Telecommunications (Etisalat), a Middle East firm, said earlier this month it was buying a 16 percent stake in Excelcom from Indonesia's Rajawali Corp for $438 million.

Etisalat, the second-largest publicly traded Arab telecom firm with operations in 16 countries, was quoted by Reuters as saying it wanted to gain exposure to the fast-growing telecoms market in Indonesia, the world's fourth most populous country.

Analysts see plenty of scope for growth in Indonesia's telecoms market, where penetration lags many other markets, with just 75 million subscribers in a population of 226 million.

Indonesia to open trading house for SMEs in Jedda early 2008

Jakarta (ANTARA News) - The Cooperatives and Small- and Medium-scale Enterprises (SMEs) Ministry in cooperation with businesspeople in Jedda, Saudi Arabia, is to open a trading house for food products and cosmetics produced by Indonesian SMEs in the Saudi city in early 2008, an official said.

"A building to accommodate the house has been set up and all relevant technical matters have been discussed, so our target now is to open the trading house in Jedda in early 2008," Deputy for Marketing and Business Networks to the State Minister for Cooperatives and SMEs Sri Ernawati said here Friday.

The trading house would be run in cooperation with Saudi businesspeople who already have experience in marketing Indonesian SMEs` products in Jedda. The cooperation would be conducted as a partnership for mutual benefit, she said.

Jedda was chosen as the location of the trading house as the city is a gateway to other Arab and African countries.

The trading house in Jedda was expected to be an effective solution to the export and marketing problems encountered by Indonesian SMEs, Ermawati said.

It was reported earlier that the Office of the State Minister for Cooperatives and SMEs has set up an agency providing marketing services to cooperatives and SMEs by acting as a mediator between Indonesian SMEs and foreign buyers.

"The agency is also intended to help SMEs meet export requirements as their capacity in this respect is usually low, while their capital strength and knowledge of export procedures are limited," she said.

The agency which has been operating since 2007 now had business partners in Bulgaria and set up a trading house in a city in that country.

"The agency has set up partnership relations with local companies that have networks and experience in marketing handicraft products from Indonesia," she said.

She said Bulgaria was chosen as the location of the trading house as the country served as a gateway to other European countries.

"In the future, the trading house pattern is expected to overcome export problems frequently faced by cooperatives and SMEs," she said.

Apexindo, Vico renew contract

JAKARTA (Jakarta Post): A local oil drilling firm, PT Apexindo Pratama Duta, has received another 2.5-year contract worth US$71 million to conduct drilling in the U.S.-based oil company Vico's oil and gas concession in East Kalimantan.

Apexindo president director Hertriono Kartowisastro said Wednesday that Vico would use Apexindo's two drilling rigs, Rig 9 and Rig 10, to carry out the drilling work at a contract value of $34.8 million and $35.7 million, respectively.

"This is the biggest land-drilling contract that we have got so far," Hertriono said.

Apexindo has conducted drilling work at Vico's Kalimantan oil field for almost two decades.

Berlina eyes profit after last year's loss

The Jakarta Post, Jakarta

Publicly listed plastic packaging company PT Berlina expects to return to the black this year following a loss last year, eying a full-year net profit of Rp 12.14 billion (around US$1.3 million), the company's president director says.

Antonius Rudy Sugiarto told a media conference Wednesday that the net profit was due mainly to a 24 percent increase in estimated net revenue this year to Rp 379.89 billion from Rp 306 billion last year.

"We will continue to push the sales of our profitable products, such as packaging for pharmaceuticals and cosmetics in the years to come.

"Besides that, we're also planning to make investments and acquisitions in collaboration with Japanese and German investors in the next couple of years," he said, refusing to elaborate further as the matters were still under discussion.

Starting next year, Rudy said the company would also start exporting technology products such as molding and capping machines. "Making investment in technological development is more promising than pursuing a larger market share (for existing products)."

Berlina, which is 51.42 percent owned by PT Dwi Satrya Utama, 23.34 percent by company affiliates and 25.24 percent by the investing public, operates three factories in Pandaan, East Java, in Cikarang, West Java, and in Tangerang, Banten.

The company's domestic clients include Unilever, Danone, Kao, Sara Lee, Mandom, Orang Tua Group, Penzoil, Sosro and Mustika Ratu, while it exports to Japan, the Southeast Asian countries, Sri Lanka and Bangladesh.

It has two subsidiaries -- PT Hefei Paragon Plastic Packaging, which has a plastic packaging factory in China, and PT Lamipak Primula Indonesia, which has tube factories in Sidoarjo, East Java, and in Cikarang, West Java.

NSW scheme to be rolled out in nine more ports

The Jakarta Post, Jakarta

The government hopes to expand the National Single Window (NSW) scheme, an on-line permit service for importers and exporters -- first introduced earlier this week at Jakarta's Tanjung Priok Port -- to nine more major ports next year.

"So far, it's been successful at Tanjung Priok Port.

"And we expect that ten big ports, including Tanjung Priok Port, will be served by the scheme by the end of 2008, at the latest," said Edy Putra Irawadi, a deputy to the coordinating minister for economics, on Thursday.

By next April, he said, the government would introduce the system at Belawan Port in North Sumatra, Tanjung Mas in Central Java, Tanjung Perak in East Java, and Makasar Port in South Sulawesi.

The extension of the scheme to another five ports -- Panjang in South Sumatra, Pontianak in West Kalimantan, Batam, Bali and Banjarmasin in South Kalimantan -- was expected to follow later in the year.

Last Monday, Finance Minister Sri Mulyani Indrawati officially launched the first stage of NSW and its web portal -- http://www.insw.go.id.

During the first stage, five government agencies out of the 36 with responsibilities in the export/import field, have adopted the system, namely, the Customs Office, Food and Drug Control Agency, Directorate General of Foreign Trade, Animal Quarantine Center and the Agricultural Quarantine Center.

Currently, however, only 100 importers -- the beneficiaries of the so-called fast-track priority facility operated by the port authority -- are able to benefit from the scheme.

The priority facility, which grants importers preferential treatment for goods inspection at the port, is restricted to firms that have a proven track record and have never violated the regulations.

As for exporters, they will not be eligible to receive such treatment during the first phase of the NSW scheme, which is expected to end before April, when the second phase is scheduled to commence.

"We hope that by April next year, when we launch a common portal, the work of all the 36 agencies will be integrated in the NSW system, as well as other importers and exporters, so that we can simplify permit processing and curtail corruption," Edy said,

"There used to be a lot of redundancies involved as regards the necessary documents, unnecessary payments and convoluted bureaucracy."

He said that under the new service, an importer would only need 7.5 hours to get the necessary clearances to recover their shipments from the port authority, must faster than previously, when several days might be required.

The new service would also significantly reduce costs.

Edy said the NSW scheme had also simplified the job of the relevant government agencies, adding that the 23 biggest ports in Indonesia had to process 4.5 million export and import documents every year.

Mandiri set to boost micro loans

The Jakarta Post, Jakarta

Bank Mandiri, the country's largest bank, plans to boost its lending to micro businesses by opening up to 300 more micro units next year to add to the existing 311.

"Micro businesses are very important in Indonesia as they provide employment. That's why we have to support them," said micro and retail banking director Budi Gunadi Sadikin on Wednesday.

He said that of the 300 new micro units, 104 would be in Jakarta, 60 in Sumatra, 25 in West Java, 24 in Central Java and Yogyakarta, 30 in East Java, 12 in Bali, 20 in Kalimantan and 25 in Sulawesi and Papua.

According to the central bank, loans of up to Rp 50 million (around US$5,300) are categorized as micro, from Rp 50 million to Rp 500 million as small and from Rp 500 million to Rp 5 billion as medium.

Budi said Mandiri commenced lending to micro, small and medium enterprises in 2005.

"We want to see more entrepreneurs establishing micro businesses. Unfortunately, Indonesian youth has a lack of role models in the entrepreneurship arena," he said in a discussion on the development of micro, small and medium enterprises.

Mandiri's lending to micro business during the first nine months of this year amounted to only Rp 1.12 trillion, less than 1 percent of its total loan book of Rp 121.7 trillion.

Still, it reflects an increase of 4 percent from last year's Rp 982 billion.

In addition to providing more loans to micro businesses, Mandiri is also stepping up its efforts to boost its housing loan portfolio, taking advantage of rising demand on the back of declining interest rates.

Also on Wednesday, Mandiri signed an agreement with top developer PT Lippo Cikarang.

Under the partnership agreement, every buyer of a home or shophouse in Lippo Cikarang that has been purchased with a loan from Mandiri will get a fixed 7.77 percent interest rate during the first two years.

"We are offering loans ranging from Rp 25 million to Rp 5 billion for customers who use Bank Mandiri's housing loan scheme," said the bank's director for consumer finance, Omar S. Anwar.

Meanwhile, PT Excelcomindo Pratama, Indonesia's third-biggest mobile-phone operator, said it had received a Rp 4 trillion ($424 million) loan from Bank Mandiri to expand its network.

The funds will be used to build transmission towers and fiber optic cabling, President Director Hasnul Suhaimi told Bloomberg.

It will be repaid in five years, the telecoms company said in an e-mailed statement.

Excelcomindo, controlled by Telekom Malaysia Bhd., is building networks outside the main island of Java to win more customers and counter falling prices. The company, also known as Excelcom, obtained shareholders' approval in November to raise $950 million by selling bonds or borrowing.

"We'll probably seek a syndicated loan as well as issuing bonds next year" to refinance the debt, Suhaimi said. He didn't elaborate.

The Jakarta-based company had 12.8 million subscribers as of Sept. 30. PT Telekomunikasi Selular is Indonesia's largest wireless operator, followed by PT Indosat and Excelcom.

More rangers to hunt illegal loggers

JAKARTA (Jakarta Post): The forestry ministry plans to have 1,500 elite forest rangers by 2009 to protect forests from illegal logging.

Forestry Minister MS Kaban said his office would also procure speed boats and firearms and train rangers on how to use them.

He spoke at the inauguration ceremony of 300 rangers in Sukabumi, West Java on Wednesday.

He said "floating ranger stations" would also be set up.

Currently there are nearly 900 elite forest rangers divided into 11 brigades.

National Police chief Gen. Sutanto said Thursday that illegal logging activities had significantly decreased in recent years.

Logging syndicates had long benefited at the expense of the country's public wealth and the fight against them wasn't over, he assured

New power plant might break down

DENPASAR (Jakarta Post): The absence of technology transfer in setting up the wind-powered plant on Nusa Penida Island, Klungkung regency, has raised fears the plant could not be repaired in the event of an accident.

"We fear officials will not be able to repair the plant if it suddenly breaks down. The problem is, when the plant's parts were purchased, they did not come with the necessary technology transfer," Harry Surjadi, executive director of the Society of Indonesian Environment Journalists, told Antara in Denpasar on Wednesday.

Eight parts of the plant's generator were reportedly set up ahead of a visit by delegates from the recent climate change conference.

"The plant should include transfer of technology, but what happened in Nusa Penida was simply a purchase deal," he said.

Hira P. Jhamtani, an activist from the Third World Network, also raised a similar issue, urging developing countries to demand transfer of technology from developed countries.

"With the existence of technology transfers, we can fix anything, including the power plant, when it breaks down," she said.

Administration forced to tighten purse strings

The Jakarta Post, Jakarta

Due to the regional income being lower than expected this year, the city administration is preparing to be more thrifty in its spending in 2008.

"The proposed budget for next year is lower than the 2007 budget by Rp 679 billion ... However, I am optimistic we can boost the regional income next year," Governor Fauzi Bowo said Tuesday after submitting the proposed budget to the City Council.

The proposed budget for 2008 is Rp 20 trillion (approximately US$2.12 billion), or 3.28 percent lower than the 2007 budget, which was Rp 20.68 trillion.

In 2006, the city budget was Rp 17.99 trillion and in 2005 it was Rp 13.48 trillion.

Fauzi said the budget was expected to decrease in value next year due to the fact the city fell short of its projected income of Rp 18.65 trillion in 2007. He said at the end of the third quarter, the city administration's income for the year stood at only Rp 11.3 trillion, or 60.59 percent of the projected total.

Fauzi said the administration would take steps to increase its income next year and would reduce unnecessary expenditure as well as expand the role of the public and private sectors in budgeting and development.

He said to save money during the past few months, the administration had procured goods and services over the internet, which resulted in budgetary savings amounting to almost 15 percent.

"For example, if a project was worth Rp 1 billion, we could save up to Rp 150 million with online procurement," he said.

Fauzi said discussions regarding the budget were expected to be finalized by Jan. 15, after which the budget would be submitted to the Home Ministry for approval. He said it was likely the budget would be disbursed in February.

"We submitted the proposed budget late this year due to the gubernatorial election," he said.

City Council speaker Ade Surapriatna said the council realized the importance of speeding up discussions regarding the budget.

"We can schedule discussions for any time ... as it is important we finish the process quickly," Ade said.

Aside from revealing the administration's income plans for next year, the proposed budget also details several programs to be carried out, totaling some Rp 3.25 trillion.

The administration submitted 2007's proposed budget in November 2006. However, the budget was only finalized in April 2007, causing delays in salary payments for city employees and contractors. (tif)

The administration's proposed programs for 2008

• flood control: Rp 691 billion
• for East Flood Canal land acquirement Rp 400 billion
• for river clearances Rp 215 billion
• for dam clearances Rp 76 billion
• Improvements on busway corridor I - X Rp 142 billion
• preliminary development of MRT Rp 108 billion
• first phase of Pulogebang bus terminal construction Rp 25 billion
• development of roads/bridges to support West and East Primary Center: Rp 41 billion
• construction of low-cost apartments: Rp 257 billion
• school operational costs (elementary - high schools) Rp 1 trillion
• health services for the poor/disaster-affected families Rp 200 billion
• construction of two public health centers Rp 43 billion
  
• disease control Rp 10 billion and public health insurance Rp 2 billion
• improvement of transparency and accountability: Rp 5 billion (including for e-procurement and internet-based business permits)
• development of Old City tourism: Rp 18 billion
• air pollution and green space control: Rp 110 billion

Jakarta warned of Christmas tidal floods

JAKARTA (Jakarta Post): A second high tide in less than a month is likely to hit Jakarta's shores on Dec. 23 and 24, said an Indonesian-Dutch tidal monitoring body.

The city's public works body said it has moved into preparatory mode and is repairing coastal embankments in seven areas in North Jakarta.

Jakarta Flood Project, the Indonesian-Dutch partnership, said it has closely monitored tide levels and has calculated sea water levels on Dec. 23 and 24 would be as high as Nov. 26, when high-tides caused traffic mayhem along the city's airport toll road.

"Sea water levels are already very high," project leader Jan Jaap Brinkman was quoted in an email sent to The Jakarta Post on Thursday.

"The 190 centimeter mark was reached at Pasar Ikan (Jakarta's fish market) today," Jan Jaap said.

"Tomorrow levels will increase again."

"It is almost certain that sea water levels will reach the same levels as on Nov. 26."

RI, Moroccan companies exploring joint projects to produce fertilizer feedstock

Jakarta (ANTARA News) - A consortium of four Indonesian companies led by PT Petrokimia Gresik (PT Petrogres) and the Moroccan state-owned OCP (Office Cherifien des Phosphates) Group are to explore the feasibility of joint projects to produce fertilizer plant feedstock in an effort to ensure their supply amid their rising world market prices.

The two sides` agreement to do the exploration was formalized in a Memorandum of Understanding (MoU) signed by PT Petrogres President Director Arifin Tasrif and OCP Marketing and Sales Director Mhamed Ibnabdeljalil on the sidelines of an International Fertilizer Association (IFA) conference in Nusa Dua, Bali, on Wednesday.

Mhamed Ibnabdeljalil said the MoU was an initial step to study the feasibility of projects OCP intended to undertake together with the consortium of PT Petrogres, PT Pupuk Kalimantan Timur (PKT), PT Medco Energy International Tbk, dan PT Bosowa Investama.

"We want the feasibility study to be completed in six months` time after which we will move to the next stage of the cooperation," Mhamed said.

He said the two parties would cooperate to set up an integrated posphate acid factory in Morocco which had the biggest posphate rock reserve in the world.

According IFA data, Morocco had a reserve of about 21 billion tons posphate rock and its posphate production in 2006 stood at about 27.1 million tons or the third highest output in the world after China and the United States.

"We will also collaborate to build an ammonia plant in Indonesia to ensure ammonia supply to make fertilizer in Morocco," the OCP executive said.

PT Petrogres chief Arifin Tasrif said the cooperation was intended to ensure stable supply of phosphate for the production of various types of fertilizer needed in Indonesia such as DAP, SP-36, and NPK.

"The world market prices of fertilizer feedstock such as phosphate are now constantly rising because demand is exceeding supply in line with the development of bio fuels in many countries," he said.

The Indonesian side was hoping that through the cooperation it would be assured of stable supply of posphate, phosphate acid in particular, for the production of non-urea fertilizer at a favorable price while the world market prices of these commodities were on an upward trend.

So far, non-urea fertilizer makers in Indonesia, PT Petrogres in particular, were importing posphate rock and posphate acid from several countries, including Morocco. The price of phosphate rock had continuously increased from $70 per ton early this year to $150 late this year.

"We expect this cooperation to be able to ensure supply of phosphate to Indonesia as demand for non-urea fertilizers such as NPK is expected to continue to increase and reach four million tons by 2020," he said.

The envisaged phosphate factory in Morocco would have a production capacity of 300,000 to 400,000 tons a year and was estimated to require an investment of $225 million to $360 million.

Indonesia government may set up holding company for state banks

Jakarta (ANTARA News) - The government may set up a holding company under which all state banks could be put together, in accordance with a central bank rule that disallows a bank owner to control more than one bank by end-2010, an official said Wednesday.

"We have submitted a proposal (to Bank Indonesia). The possibility is to set up a holding company," State Enterprises Minister Sofyan Djalil told reporters.

Bank Indonesia has set an end-2007 deadline for affected bank owners to decide on how they would comply with the rule.

Apart from setting up a holding company, owners can also merge the banks they control, or keep their stake in just one bank and sell their interests in other banks.

The government still controls three listed state banks -- PT Bank Mandiri, PT Bank Rakyat Indonesia and PT Bank Negara Indonesia. They are the first, third and fourth largest banks in the country.

The state also owns non-listed banks PT Bank Tabungan Negara and PT Bank Ekspor Indonesia.

Other bank owners affected by the rule include Singapore government investment arm Temasek Holdings, which controls PT Bank Internasional Indonesia and PT Bank Danamon; and Malaysia's state investment agency Khazanah Nasional Bhd, which has stakes in PT Bank Niaga and PT Bank Lippo.

Temasek has decided that it prefers to merge the two Indonesian banks that it controls.

Khazanah has yet to announce its decision.

Bank Indonesia director Halim Alamsyah told Thomson Financial he understands that Khazanah has submitted a proposal, but he declined to give more details.

Carrefour expects negotiations to buy Alfa stake completed shortly

Paris (ANTARA News) - PT Carrefour Indonesia, a unit of Carrefour, said Wednesday it expects negotiations for the purchase of a majority stake in retailer PT Alfa Retailindo to be completed shortly.

"We have just signed a memorandum of understanding for the stake purchase. We hope an agreement can be reached over the next few days," Carrefour Indonesia corporate affairs director Irawan Kadarman told Thomson Financial.

Earlier today, the company said it was planning to acquire a 75 percent stake in PT Alfa Retailindo from key Alfa shareholders PT Sigmantara Alfindo and Prime Horizon Pte Ltd.

Kadarman however declined to comment on how much Carrefour was offering for the stakes.

PT Sigmantara Alfindo owns 55 percent of Alfa Retailindo, Prime Horizon holds 40 percent and 5 percent is held by the investing public.

Prime Horizon is an investment company jointly owned by Citigroup Financial Products Inc, CIMB Group Sdn Bhd and the Government of Singapore Investment Corp (Ventures) Pte Ltd through its wholly owned unit, Archipelago Investment Pte Ltd.

Prime Horizon bought Alfa Retailindo shares from cigarette maker HM Sampoerna and Sigmantara Alfindo in September last year.

Alfa Retailindo operates supermarkets.

Earlier, Indonesian retailer PT Ramayana Lestari Sentosa had offered to buy PT Sigmantara Alfindo and Horizon's stakes in Alfa Retailindo for 1,600 rupiah per share.

Ramayana later cancelled the deal due to disagreement over certain provisions of the sale-and-purchase agreement.

Oxiana approves US$310 mln Indonesian gold mine development

Melbourne (ANTARA News/Asia Pulse) - Australian copper and gold miner Oxiana Ltd (ASX:OXR) has approved the $US310 million ($A361.2 million) development of the Martabe gold and silver mine in Indonesia.

Oxiana is expected to initially produce about 200,000 ounces of gold and 200,000 ounces of silver from the project over a nine year life. The company expects that construction of the process plant will start in July 2008 with commissioning of the mine scheduled for December 2009.

Indonesian firms and Mitsubishi to build LNG plant

Jakarta (ANTARA News) - Mitsubishi Corp. has agreed on a joint venture with Indonesia's state oil firm, Pertamina, and PT Medco Energi Internasional Tbk to build a LNG plant in Sulawesi, a Medco official said on Wednesday.

"We have signed a joint venture agreement and there will be further talks on gas supply," Hilmi Panigoro, president director of the Indonesian energy firm, was quotd by Reuters as telling reporters.

He said Medco would take a 20 percent stake in the liquefied natural gas plant, while Mitsubishi would hold 51 percent and Pertamina 29 percent.

He did not elaborate on the cost of building the plant.

A Pertamina official, who declined to be named, said the plant would receive natural gas from the Matindok field, operated by the state oil firm, and Medco's Senoro field. The fields have combined reserves of around 2 trillion cubic feet of gas.

The official said the plant would have an annual capacity of around 2 million tonnes of LNG.

Panigoro said he expected the plant to come onstream in 2011.

Indonesia is the world's second-largest producer of LNG after Qatar but production is expected to fall by 4 percent next year, while exports may fall even further as the country seeks to divert more gas to the domestic market.

Indonesia, Asia Pacific's sole OPEC member, has far more gas than oil and is trying to phase out costly oil-fired power generation and use more of its cheaper and cleaner natural gas domestically.

But it faces limited supplies due to long-term LNG export commitments, which it is reviewing.

The country is estimated to have gas reserves of around 182 trillion cubic feet.

Govt to let private business engage in railways

Jakarta (ANTARA News) - The government will let private enterprise enter the railway business through a railway revitalization program to be implemented in 2008-2010, Transportation Minister Jusman Syafii Damal said.

Private business will have an opportunity to invest in and manage railway utilities and infrastructure, Jusman told the press after a meeting on railway revitalization at the vice-presidential office here Wednesday.

A government regulation giving the private sector a role in the operation and management of railways will be issued in March 2008, he said.

"Letting the private sector enter the railway business is in principle intended to create a climate of healthy competition in the field so that there will also be an improvement in the quality of railway services," the minister said.

He said the private sector would at least have a share in the operation and management of special train services to transport strategic commodities such as coal or oil-palm kernel, or also of airport train services.

About the railway revitalization program, Jusman said it was estimated to cost about Rp19.3 trillion and cover railway operations in the Jabodetabek (Jakarta-Bogor-Depok-Tangerang-Bekasi) region, Java, and a few provinces in Sumatra such as North Sumatra, West Sumatra, and the southern part of Sumatra.

In parts of Sumatra, the revitalization would include rehabilitation of bridges, roads, and other infrastructure facilities including the building of a tunnel through the Bukit Barisan mountain range at Indarung.

In Java revitalization efforts would be focused on increasing the capacity of services to keep up with the constant growth in the number of train passengers and of container and other goods transportation.

"It is estimated that by 2010 the number of people moving within the Jabodetabek region daily will reach 22 million. It has been decided that a separate company needs to be set up to serve the needs of that number of commuters in a better way," Jusman said.

The revitalization program would be implemented by a national team to be overseen by the Coordinating Minister for Economic Affairs.

Vice President Jusuf Kalla at the meeting asked the management of state-owned railway company PT KA to concentrate on efforts to improve its image. "The safety of railway travel must be improved and train passengers` comfort guaranteed," Kalla said.

The meeting at the vice president`s office was also attended by Coordinating Minister for Economic Affairs Boediono, State Enterprises Minister Sofyan Jalil, National Development Planning Minister Paskah Suzetta and Industry Minister Fahmi Idris.

PLN opening tender for supply of high-speed diesel oil

Jakarta (ANTARA News) - State-owned electricity company PLN is opening another tender for the supply of one million kiloliters of high-speed diesel (HSD) oil per annum for the 2008-2010 period.

PLN needs the HSD oil to operate power generating plants in Belawan (N Sumatra), Grati (East Java), Tanjung Batu (East Kalimantan) and Pontianak (West Kalimantan), the company`s power generation and primary energy director, Ali Herman Ibrahim, said here Wednesday.

"The tender`s winner will have the opportunity to be assigned to supply diesel oil for two more years (after 2010)," Ali Herman said.

He said the tender winner was expected to sign a contract with PLN by April next year, adding that interested parties could obtain auction forms between December 27, 2007 and January 9, 2008.

Companies interested in taking part in the tender would be required to guarantee their ability to supply 100,000 to one million kiloliters of HSD per annum from refineries either at home or abroad.

So far, PLN`s need for diesel oil was being met by only one company, namely state-owned oil company Pertamina.

PLN needs some nine million kiloliters of HSD oil and marine fuel oil (MFO) every year.

PLN held a similar tender late last year. A number of companies then expressed their interest such as PT Aneka Kimia Raya, PT Elnusa Petrofin (a subsidiary of Shell), PT Krida Petra Graha (a subsidiary of PT Petronas Wiraniaga Usaha) and PT Sigma Bangun Persada (a subsidiary of Gulf).

The location of PLN`s power generating plants at the time were among others Grati, Gresik Muara Karang, Muara Tawar and Tanjung Priok.

But PLN had up to now not yet named the winner of last year`s tender.

Govt bodies agree to speed up food vulnerability

Jakarta (ANTARA News) - A number of government institutions and ministries have agreed to speed up efforts to reduce the country`s food vulnerability and poverty rate over the next two years.

Efforts to lessen food vulnerability would be made through integrated programs to be carried out by government institutions and ministries, Agriculture Minister Anton Apriyantono said here on Wednesday following a meeting of the Food Resilience Council.

The meeting was attended among others by the agriculture minister, the trade minister, the transportation minister, the cooperatives minister, the president director of the National Logistics Board (Bulog), as well as officials from the marine and fisheries ministry and the economic coordinating ministry.

The government had set itself the target of reducing food vulnerability and the poverty rate within five years but the meeting decided to shorten the time, Apriyantono said.

Some 16 ministries and government institutions, including state-owned companies (BUMNs) would support the programs, the minister said.

Apriyantono said food vulnerability was closely related to poverty. The country`s poverty rate in 2005 was recorded at 16.69 percent and it increased to 17.75 percent due to the impact of the fuel price hike in 2006.

However, the poverty rate in 2007 dropped to 16.58 percent as the impact of the fuel price hike had been overcome, he said.

The fuel price hike had affected people facing food shortages whose energy consumption rate was below 70 percent of the energy adequacy rate.

In 2005, a total of 5.11 million people (or 2.32 percent of the country`s population) lived with an energy consumption rate below 70 percent. In 2006 the number rose to 9.95 million or 4.52 percent of the population, but in 2007 it decreased to 5.71 million or 2.55 percent of the population.

"As we are now in the improvement stage, we are moving to the next stage, namely acceleration in order to speed up the reduction of the poverty rate," he said.

The food vulnerability rate had significantly dropped over the past 10 years from 7.9 percent in 1999 to 2.5 percent in 2007, the minister said. Meanwhile, the number of poor people during the 2001-2007 period decreased from 19.1 percent to 16.6 percent.

The head of the agriculture ministry`s Food Resilience Body, Kaman Nainggolan, said one of the efforts to reduce the poverty rate would be the launching of non-formal education programs to fight illiteracy.

"In India, literate mothers have a better understanding and awareness of adequate food intake so there are no more malnourished children there," he said.

In Indonesia, illiteracy-related problems were still to be found in West Java, Banten, East Java and a number of provinces outside Java Island, he said.