Governor asks Chevron to help local people

The Jakarta Post, Jakarta | Sat, 02/13/2010 6:07 PM

West Java Governor Ahmad Heryawan has asked the US-based energy giant PT Chevron Geothermal Indonesia (CGI) to do more to help the community who live around their geothermal power plant in Garut.

Ahmad said during his visit to the CGI operational area on Saturday the province’s population of 42 million lived on only Rp 660,000 (US$71) per month on average, far below the US minimum standard of living of $2,500.

With poverty still rampant in the province, Ahmad expected the company to help the local government improve the education and health standard of the people, Antara reported.

The governor also asked the company to support rehabilitation of critical land in Garut, which he said was vulnerable to landslide, through green activities.

Ahmad said he visited the CGI plant not to “extort” the company, but to ask the management to empower and assist local people so as to avoid social upheavals.

PT CGI operates Darajat geothermal power plant, which produces 295 megawatts of electricity.

Chevron is the only foreign company currently developing geothermal energy in Indonesia, whose geothermal resource base is believed to be able to produce over 27,700 MW of electricity, or 40 percent of the world's reserve.

Looming talks

The Jakarta Post, Fri, 02/12/2010 11:43 AM

Coordinating Economic Minister Hatta Rajasa (second right) and Bank BNI president director Gatot M. Suwondo (right) talk to Zaenabun (left), a traditional songket weaver after inaugurating Kampoeng BNI in Muara Penimbung village in Ogan Ilir, South Sumatra, on Thursday. Some 100 songket makers in the village received a Rp 1 billion (US$106,695) partnership loan from BNI. JP/Ricky Yudhistira

S. Korean firm building $200m textile plant in West Java

Mustaqim Adamrah, The Jakarta Post, Jakarta | Fri, 02/12/2010 11:22 AM

South Korea-based textile and garment manufacturer Sae-A is building an integrated textile plant with an investment of US$200 million in Jatiluhur, West Java, to support the company’s expansion in the Indonesian market.

Indonesian Ambassador to South Korea Nicholas Dammen said the plant would have dying and knitting units and occupy a 60-hectare site in Jatiluhur, about 2-hours’ drive from Jakarta.

“The investment [amounts] to $200 million. [Construction] has begun and the operation will begin in January,” Nicholas said recently. “Once the factory is fully operational, it could employ up to 15,000 workers.”

As a first step, Sae-A will build the dying factory, which could employ around 2,000 workers, Nicholas said. He also said the company would use raw materials from the domestic market, instead of importing materials like many other South Korean companies.

“But it also has asked for guaranteed gas supplies to the plant, because the plant needs clean energy for its operation,” he said.

The domestic market has suffered from ongoing gas shortages because a larger portion of gas production is exported in the form of liquefied natural gas (LNG).

Nicholas said Sae-A is the largest textile and garment manufacturer in the world, with factories worldwide, including in Latin America, North America and throughout Asia, including in Vietnam and Indonesia.

In Indonesia the South Korean giant operates two factories, both in West Java, he said.

A total of around 10,000 workers are employed at the Purwakarta and Sukabumi factories, Nicholas said.

Investment Coordinating Board (BKPM) chief Gita Wirjawan could not be reached to confirm the figures.

Industry Ministry textile industry director Arryanto Sagala said he had no knowledge of Sae-A’s latest investment.

“If that’s true, the government can offer them our machinery-restructuring program, under which they can obtain a 10 percent discount [on new machines],” he told The Jakarta Post.

However, Arryanto also said that previously South Korean investors’ had left workers when they went bankrupt.

Echoing Arryanto, Indonesian Textile Association (API) deputy chairman Ade Sudrajat said while he had not heard about the new plant, he welcomed it.

“With an investment of that size… they will no doubt absorb a large number of workers,” he told the Post.

Ade also welcomed Sae-A’s plan to use local raw materials, because hundreds of South Korean garment makers already operating here tended to import raw materials, he said.

Jamsostek to expand into financial sector, healthcare service

Nani Alfrida, The Jakarta Post, Jakarta | Fri, 02/12/2010 11:22 AM

State workers’ insurance company PT Jamsostek plans to enter the financial sector, including banking, and healthcare services as part of the company’s expansion program, says a Jamsostek senior executive.

Jamsostek president director Hotbonar Sinaga said in Jakarta on Thursday the company would soon establish the investment firm, Jamsostek Investment Company (JIC), which would handle the company’s direct investments.

JIC will be established with an initial investment of Rp 1 trillion (US$107 million) and will manage all Jamsostek’s subsidiaries, he said.

Jamsostek, which at present places most funds collected from workers either in the form of savings or social and work insurance in bank deposits and portfolio investments such as bonds and equity, is also preparing to establish a reinsurance company to help mitigate the business risks of state companies, he said.

“The reinsurance firm will be established this year and will operate in cooperation with strategic partners,” he said during a hearing with the House of Representatives’ Commision IX overseeing population, health, employment and transmigration.

“In the health sector, we will acquire PT Nayaka, which provides healthcare services. At present, the company has a contract to provide healthcare services to Jamsostek members,” he said during the hearing.

“Jamsostek also plans to acquire PT Nakartrans, which provides recruitment services,” he added.

In the expansion of the banking sector, Hotbonar said the company was considering increasing its ownership in Bank Syariah Bukopin to 51 percent from the current share of 10 percent. He expected the bank could support Jamsostek’s programs to provide affordable house credits for its members.

In 2010, Jamsostek’s total investment is expected to increase by 8 percent to Rp 88.4 trillion ($9.45 billion). Jamsostek investment director Elvyn G. Massasya said the company would invest most of the funds on bonds. “We will place Rp 40 trillion or 46 percent of the total investment on bonds, mostly the government’s bonds,” Elvyn said.

According Elvyn, the government’s bonds carry fewer risks compared to corporate bonds.

Besides bonds, the company will also place about Rp 23.3 trillion of the investment funds in bank deposits, Rp 17.6 trillion in equity, Rp 4.9 trillion in mutual funds, Rp 785 billion in property and Rp 902 billion in direct investment. This year, the company expects to book investment returns totaling Rp 9.01 trillion from Rp 8.5 trillion last year. (ind)

Rules May Free $10b Of Mining Projects in Indonesia

Jakarta Globe, Reva Sasistiya, February 12, 2010

The Indonesian Mining Association said at the end of last year that $10 billion worth of mining projects were stalled because of the government’s slow pace in issuing regulations. (AP Photo/Achmad Ibrahim, File)

The government announced on Friday that it had issued two implementing regulations for the new Mining Law that will clear the way for the development of $10 billion worth of projects that have been stalled because of the slow legislation.

The detailed guidelines governing mining concessions were signed by President Susilo Bambang Yudhoyono and are retroactive to Feb. 1. Investors had long been waiting on the regulations to resolve questions over the validity of their existing contracts of work (KK).

“We will honor the existing contracts,” said Bambang Gatot Ariyono, director of coal and minerals at the Energy Ministry.

The Indonesian Mining Association said at the end of last year that $10 billion worth of mining projects were stalled because of the government’s slow pace in issuing the regulations.

The regulations state that existing contracts will not be subject to changes in the new Mining Law.

Article 39 of regulation No. 22/2010 stipulates the smaller existing mining areas will be known as mining business permit territories (WIUP) within three months. However, Bambang said the shift in terms from mining areas to WIUP did not mean they would be affected by the new law.

Larger, existing mining concessions will be called mining business areas (WUP) within three months. The new Mining Law sets limits on exploration, production and size of concession, but WUP and WIUP holders are not subject to the restrictions.

The other regulation, No. 23/2010, states that the government must honor existing KK and mining concessions (KP) until the contracts expire. KK contracts are long-term deals signed with the central government guaranteeing lengths of 25 years and upward. KP are shorter duration contracts.

Both systems are being phased out in favor of mining business permits (IUP), which will further restrict the durations of contracts and areas of concessions.

According to the Energy Ministry, there are 8,020 applications for IUPs.

“We hope with the regulations release, the investors will start their projects soon,” Bambang said.

However, the IMA was wary of the regulations, saying it needed to study them further.

“We’re still unsure on how it will be implemented,” said Priyo Pribadi Soemarno, IMA’s executive director.

The stalled projects include a $4 billion nickel project by Rio Tinto, a $2 billion nickel project by Eramet, a $500 million zinc and black tin project by Dairy Prima, a $500 million gold project by Meares Soputan, and three PT Aneka Tambang projects — a $1 billion hydrometallurgy project, a $320 million ferronickel project and a $220 million chemical grade alumunia project.

Indonesia offers tax incentives for renewable energy

Reuters, Fri Feb 12, 2010 8:28am GMT

JAKARTA, Feb 12 (Reuters) - Indonesia is offering tax incentives to develop renewable energy projects, including geothermal energy, to cut dependency on fossil fuels, a decree published on the finance ministry's web site (www.depkeu.go.id/ind/) showed.

Indonesia has said previously that its wants to use more renewables and is targeting by 2025 an energy use mix of 30 percent from gas, 20 percent from oil-based fuels, 30 percent from coal, and the rest from renewables such as geothermal and solar power.

According to the decree, signed Jan. 29 by Finance Minister Sri Mulyani Indrawati, the government will reduce net tax by 5 percent per year on total investment for 6 years.

The government will also allow faster asset amortization and impose a lower tax rate on dividend payments for non-resident investors, the decree said.

The government will also provide exemption from value-added tax and import duty for equipment and machinery used in renewable energy projects.

An exemption on value-added tax on equipment used for exploration of oil and other energy resources, including geothermal, has also been extended until December.

Indonesia, with hundreds of active and extinct volcanoes, has the potential to produce an estimated 27,000 MW of electricity from geothermal sources.

However, that potential remains largely untapped because the high cost of geothermal energy makes the price of electricity generated this way expensive.

Chevron (CVX.N), lLocal energy firm Medco Energi Internasional (MEDC.JK) and state oil firm Pertamina currently have geothermal investments in Indonesia.

Indonesia has also been offering new exploration rights and financial incentives for oil and gas investors in a bid to stem a steady decline in production that has increased the need for imports.

However, oil industry players have said that the incentives are not sufficient.

Indonesia has turned into a net importer of crude oil in recent years as production has slumped after a failure to tap new fields fast enough. Its crude oil production has dropped from about 1.5 million barrels per day (bpd) in the 1990s to about 815,000 bpd currently.

(Reporting by Muklis Ali; Editing by Ed Davies)

RI, Germany to strengthen cooperation in clean energy

The Jakarta Post, Jakarta | Fri, 02/12/2010 12:31 PM

German Ambassador to Indonesia Dr. Norbest Baas met with the chairman of the People’s Consultative Assembly Taufik Kiemas Friday to discuss the potential of strengthening investment and cooperation between the two countries.

“Our focus is to attract more German businessmen to invest in Indonesia,” the ambassador said after the visit, citing Indonesia’s current promising economic performance.

He said the clean energy sector would be the ultimate target for investment because Indonesia had great potential for developing non-fossil fuel energy, such as geothermal, wind and solar energy.

He added that the German economic minister would visit the country soon, together with representatives of the German business community, to explore the potential.

Regarding the potential for expanding economic ties, Taufik said: “Indonesia will also send delegates to Germany to strengthen ties between the businessmen of the two countries.”

He said that Indonesia and Germany had a long history of economic cooperation, and pointed out that Germany company Siemens was one of the multinational corporations that stayed in Indonesia during the economic crisis of 1997. (rdf)

UGM tops list of RI best universities

The Jakarta Post, Jakarta | Fri, 02/12/2010 12:04 PM

Gadjah Mada University (UGM) in Yogyakarta ranks eighth in Southeast Asia according to the latest survey conducted by Webometrics on 100 universities across the region.

Topping the list is the National University of Singapore, followed by Kasetsart University of Thailand and Prince of Songkla University in Thailand.

There are 17 Indonesian universities that make it into the top 100, with UGM leading the pack, followed by the Bandung Institute of Technology which ranks 10th and University of Indonesia which is 17th.

Spokesman for UGM Suryo Baskoro said Friday the university welcomed the results of the latest poll, although he acknowledged Webometrics only partially assessed the universities surveyed.

Affiliated to the Spanish National Research Council, Webometrics updates the ranking every six months.

Jakarta to Begin Turning Garbage Into Electricity at Bantar Gebang Next Month

Jakarta Globe, Arientha Primanita, February 11, 2010

A scavenger wading through a sea of rubbish in search of recyclables at the 125-hectare Bantar Gebang garbage dump. (JG Photo/Yudhi Sukma Wijaya)

The Bantar Gebang integrated waste-treatment facility in Bekasi is scheduled to begin testing its electricity generating capacity next month, the Jakarta Sanitation Agency said on Thursday.

Eko Baruna Subroto, the agency’s head, said in a panel discussion about the capital’s waste and flood problems that the facility would start by generating two megawatts of electricity from the methane released by the waste on March 8.

“The two megawatts of power produced from the waste treatment facility will be the first part of the total targeted production of 26 megawatts,” he said.

Eko said the facility, the first of its kind in the country, would begin generating its 26 MW capacity next year.

The March 8 trial launch will be attended by Jakarta Governor Fauzi Bowo, Bekasi Mayor Mochtar Mohammad and Minister for Public Works Djoko Kirmanto, among other officials.

Fauzi and Mochtar last year signed an agreement for Jakarta to use the Bantar Gebang landfill site for the next 20 years. In return, Bekasi would receive a site-usage fee of Rp 103,000 ($11) per ton of garbage from the Jakarta administration.

Two private companies, PT Godang Tua Jaya and PT Navigat Organik Energi Indonesia, manage the Bantar Gebang dump.

Bantar Gebang uses gasification technology and landfill and aerobic digestion waste management. The technology produces material for composting and harvests the expended gas for the biomethane electricity-generating system.

Eko said about 70 percent of Jakarta’s 6,500 tons of daily garbage were taken to Bantar Gebang landfill, with the rest going to the Sunter dump.

He said he hoped the garbage processed at Bantar Gebang would fall to 3,000 tons a day by 2012 and 2,000 tons a day by 2023.

New dump sites in Ciangir, Tangerang, and Marunda, North Jakarta, are planned to absorb some of the excess from Bantar Gebang.

Eko said an agreement between Jakarta and Tangerang finalizing the Ciangir site would be signed next month, with a tender process for its management begun soon after.

Eko said on Thursday that the Ciangir dump would be opened in early 2011, despite reports that the site would begin operations in the middle of this year.

The Marunda site will also be managed privately, with an initial investment of Rp 600 billion. It is planned to be opened by 2012.

The site is located on 12 hectares in the Special Economic Zone in Marunda, and the facility there will use technology similar to Bantar Gebang’s.

Muhammad Sanusi, a city councilor from Commission D, which oversees development, said the council supported the new waste-treatment facilities to help handle the capital’s ever-increasing waste problems.

He said he especially supported the Marunda site because it would be the first to be wholly owned by the city.

“With independent management, the city can implement and decide on the technology needed to handle the waste problems,” Sanusi said.

Garuda makes corporate sales deal with Shell

Antara News, Thursday, February 11, 2010 02:19 WIB

Jakarta (ANTARA News) - PT Garuda Indonesia has concluded a corporate sales agreement with PT Shell Indonesia as part of its program to cooperate with 750 companies to secure a potential income of Rp2 trillion.

"It is in line with the increase in our capacity after the acquisition this year of 24 new planes and the opening of 10 new domestic and international routes," Garuda president director Emirsyah Satar said after the signing of the corporate sales accord with Shell Indonesia here on Wednesday.

He said last year the airline company signed a memorandum of understanding for corporate sales with 580 big companies in Indonesia with total income expected more than Rp600 billion.

In connection with the cooperation Emirsyah said the company had prepared special packages for Shell employees in Indonesia for domestic as well as international flights.

The president director of Shell Indonesia, Darwin Silalahi, said the contract was not only based upon a discount facility but it also showed Garuda`s capability to serve a big number of customers.

Darwin declined to tell the number of Shell Indonesia employees nor the discount Shell would receive from Garuda.

To develop corporate market in the future Garuda will ease access for its corporate partners through "Garuda Online Booking Corporate" facility and will also expand abroad, Garuda`s head of communications, Pujobroto, said.

He said Garuda had also launched a service based on a concept of hospitality rooted in the Indonesian culture called "Garuda Indonesia Experience" last August.

With regard to its service Garuda has earned a four-star class recognition from Sky Trax which is an international rating agency for airline service. It expects to earn the five-star title in 2013, he said.

Shell is a global energy and petrochemical business group with around 102,000 employees in more than 100 countries and regions, based in the Hague, the Netherlands.

In Indonesia it operates in various locations in Java and Kalimantan and has kept looking for an opportunity for developing business and to contribute significantly to Indonesia.

Indonesia Now On the Global Investment Map, Soros Says

Jakarta Globe, Camelia Pasandaran, Ardian Wibisono & Muhamad Al Azhari, February 10, 2010

Vice President Boediono, left, and billionaire investor and philanthropist George Soros at Boediono’s office on Wednesday. (Antara Photo)

Billionaire investor and philanthropist George Soros praised Indonesia’s economy for successfully weathering the global financial crisis and said the country is now on the global investment radar screen.

Soros is in Indonesia for a two-day visit to review the work of the pro-democracy Tifa Foundation, which he supports.

However, he also found time to pay a visit to Vice President Boediono to get the lowdown on recent economic and financial developments.

Soros said Indonesia had managed to pass through a very difficult financial period and experienced relatively little damage compared to other countries.

When quizzed by local reporters about the Bank Century bailout, Soros said: “Generally speaking, it is appropriate to save the financial system from collapse by supporting institutions that are in trouble.”

However, he criticized the absence of banking regulations globally, saying banks would not have needed bailouts if proper regulations had been in place.

“When you compare the amount of money that was used in Indonesia [for the bailout], compared to the tremendous amount used in the United States and Europe, Indonesia had relatively very little damage,” Soros said.

Some observers have blamed rating agency Standard & Poor’s refusal to lift the country’s sovereign debt rating on rising political tension due to the House of Representatives’ investigation into the Bank Century bailout.

Rahmat Waluyanto, the Finance Ministry’s director general of debt management, dismissed suggestions that the investigation had been a factor.

“S&P’s rating upgrade, I think, is just a matter of time. It is not true they refused to upgrade the rating because of the investigation,” he said.

Rahmat said Finance Ministry officials had recently met officials from S&P, who had been bullish on the prospects for the domestic economy.

“On the growth side, as you know, today [Wednesday] BPS announced a better-than-expected GDP growth figure,” Rahmat said.

Peter Jacobs, the head of foreign-debt analysis and investor relations at Bank Indonesia, also said the Bank Century investigation had not been a major influence on S&P.

“Today [Wednesday] we met with S&P and during the meeting they did not mention anything or ask anything about the Bank Century case or political stability,” he said.

“We mentioned our GDP growth this year. It is good news for us and I’m sure that it is good news to them as well. They will stay for a couple of weeks to see the progress on infrastructure-projects, but overall they are positive about Indonesia. I think they will announce whether they are going to upgrade within the next three weeks,” he said.

Indonesia is still rated “BB-” with a “positive outlook” by S&P, three notches below investment grade.

In late January, Fitch Ratings upgraded Indonesia’s sovereign debt to “BB+” from “BB,” with a “stable outlook,” citing the country’s resilience amid the global financial crisis and good management of the state budget. Fitch’s upgrade means the country is just one step away from its investment grade rating.

Meanwhile, Moody’s Investor Service said in January that the country’s “Ba2” rating remained stable. Moody’s “Ba2” rating means it is two levels below investment grade.

Related Article:

Global Banking Regulations Could Have Prevented Century Bailout: George Soros

Indonesia to Upgrade Ports, Airports in Wake of Trade Deals

Jakarta Globe, Yessar Rosendar & Janeman Latul, February 10, 2010

The government said on Wednesday it was planning to triple its budget for capital expenditure on state-owned seaports and airports this year to prepare for an expected increase in the flow of goods resulting from free-trade deals with China and India.

It said it would spend Rp 10.3 trillion ($1.1 billion) to upgrade 66 seaports and 25 airports this year, compared to Rp 3.27 billion in 2009. The government owns the trade gateways through four seaport operators and two airport operators.

“We will use the money to increase capacity and revitalize infrastructure at the airports and seaports,” said Harry Susetyo, a deputy at the State-Owned Enterprises Ministry, during a meeting on Wednesday with the House of Representatives Commission VI, which oversees state enterprises.

“We hope it will increase the efficiency of the ports as well as increasing revenue, as the China and India free-trade agreements boost the outflow and inflow of goods.”

About Rp 6.17 trillion would be spent at the state-owned seaports, up from Rp 1.67 in 2009, while Rp 4.14 trillion will be spent at the airports, up from Rp 1.6 trillion last year.

The government is also targeting an increase in revenue and profit at both the seaports and airports.

It aims to lift combined revenue at the seaports to Rp 7.53 trillion this year, from a projected Rp 6.5 trillion in 2009, and increase net profit to Rp 1.98 trillion, from a projected profit of Rp 1.63 trillion in 2009.

It has projected revenue at the airports of Rp 5.15 trillion this year, from a projected Rp 4.56 trillion in 2009. Net profit is targeted to rise to Rp 1.54 trillion, from a projected Rp 1.28 trillion in 2009.

A wide-ranging free-trade agreement between China and Asean came into force on Jan.1, scrapping import tariffs on about 90 percent of goods.

A more limited free-trade deal between Asean and India was signed in August 2009. It also took effect on Jan. 1.

Together, China and India buy most of Indonesia’s commodity exports, such as crude palm oil and coal.

The Central Statistics Agency (BPS) said this month that shipments of crude palm oil increased by $1.1 billion in December from November.

State-owned port operator PT Pelindo I, which oversees seaports in Sumatra, said on Wednesday that it would focus this year on developing the Dumai Port, with the goal of transforming it into the country’s main port for palm oil exports.

Many of Indonesia’s state-owned airports struggled in 2009, with only five out of 12 ending the year in the black.

The largest, Jakarta’s Soekarno-Hatta International Airport, was the most profitable. It posted an unaudited net profit of Rp 1.46 trillion in 2009.

But the seven loss-making airports recorded a combined loss of Rp 114.39 billion, resulting in a net profit for all state-owned airports of just Rp 1.18 trillion.

Tulus Pranowo, director of operations at state-owned airport operator PT Angkasa Pura II, blamed insufficient traffic for the poor performance.

Bali asked to apply non-corruption zone

The Jakarta Post, Jakarta | Wed, 02/10/2010 4:09 PM

The Corruption Eradication Commission [KPK] has asked Bali administration to apply corruption-free zone in governmental institution as a pilot project to fight corruption in the country, an official says.

KPK director Dedie A. Rachim said that public service agencies in provincial level could be designated as corruption-free zone, especially in their procurement division.

“If Bali succeeded, the good news will echo internationally. Hopefully, it would attract foreign investors,” Dedie told tempointeraktif.com on Wednesday.

Dedie credited Denpasar and Jembrana district’s effort to reduce corruption by establishing one-roof licensing agency.

Bali provincial secretary I Nyoman Yasa said that the administration is ready to start the project. (nkn)

Community Empowerment Program Reaches Out to 6.000 Villages

Tempo Interactive, Tuesday, 09 February, 2010 | 18:16 WIB

TEMPO Interactive, Semarang: The 2010 National Program for Community Self-Sufficiency and Empowerment (PNPM) has only benefitted 6.000 out of 8.000 villages in Central Java. “In the future, such a program must continue to be developed,” said Central Java governor Bibit Waluyo, yesterday. He called on the facilitators to work hard to support Central Java’s economy. The assistance ranged from infrastructure development programs to credit disbursement for the people. “Through the PNPM program, people can get facilities directly,” Bibit said.

As many as 1.009 facilitators have been trained to assist in carrying out the empowerment program at the village level in Central Java. Two facilitators will be assigned to each sub district in Central Java. The allocation for the empowerment program in Central Java for this year amounted to Rp 942 billion.

ROFIUDDIN

President celebrates Press Day

Erwida Maulia, The Jakarta Post, Palembang, South Sumatra | Tue, 02/09/2010 9:27 AM

President Susilo Bambang Yudhoyono attended an event held Tuesday to commemorate the 64th National Press Day in Palembang, South Sumatra.

Yudhoyono arrived in the city at around 9:10 a.m., after departing from Jakarta an hour earlier, and was immediately escorted to Hotel Aryaduta where the event took place.

During the event, the President will witness the signing of a ratification on press organization standards by 20 company representatives.

Yudhoyono will also witness the signing of a memorandum of understanding (MoU) on a new journalism school, the Indonesian School of Journalists, between journalism societies, the National Education Ministry, UNESCO and the local administration.

National Press Day was commemorated for the first time in 1985 and dedicated to the Indonesian Journalists Association (PWI), which was founded in 1946.

During the New Order era, the PWI was the only government-sanctioned press organization. An alternative press association critical of the government, the Alliance of Independent Journalists (AJI), was formed in 1994 and grew stronger following the reform movement that put an end to Soeharto's New Order regime in 1998.

There are now more than 20 press organizations in the country.

Related Article:

Indonesia's Journalists Set New Standards

Indonesia seaweed supply to RP assured

BusinessMirror, Agri-Commodities, Written by Jennifer A. Ng / Reporter, WEDNESDAY, 10 FEBRUARY 2010 19:48

INDONESIA has assured seaweed processors from the Philippines that it will be able to supply its requirements for raw seaweed in the coming years.

Dr. Victor Nikijuluw, a director of Indonesia’s Ministry of Marine Affairs and Fisheries, disclosed that Jakarta is not planning to impose a total ban on seaweed exports.

“[We are not planning to impose] a total ban; what we plan to do is manage exports,” Nikijuluw told reporters in a press briefing in Makati City late Monday night.

The Indonesian official said he is looking at three approaches to “manage exports.”

One approach, he said, is to give the license to import raw seaweed to companies that operate processing plants in Indonesia.

“[The second approach] is to give the export license to small and medium enterprises and cooperatives. This will ensure that SMEs and cooperatives benefit from the export of raw seaweed,” said Nikijuluw.

The Indonesian official said the third approach would be to implement a quota system for traders. He noted that Jakarta may implement all these strategies by 2012.

Last year Nikijuluw disclosed that Indonesia produced a total of 300,000 metric tons of raw seaweed. Of this volume, around 85 percent was exported to other markets. China cornered a significant chunk of this volume. The Philippines accounts for about 25 percent of what Indonesia exports to the world.

By 2014, Indonesia is targeting to increase raw-seaweed production to 1 million metric tons. Nikijuluw assured that the Philippines would still be able to get supply from Indonesia.

Benson Dakay, president of the Seaweed Industry Association of the Philippines (SIAP), hopes that Indonesia will not resort to a total ban on raw-seaweed exports.

“[Jakarta] wants [all raw seaweeds] to be processed before it ships out seaweed products. If Indonesia will impose a total ban, [their] farmers would surely suffer, because they will lose markets for their produce,” said Dakay, who also owns the seaweed-processing firm Shemberg Corp.

Meanwhile, Dakay disclosed that local seaweed processors are operating below capacity due to the lack of local seaweed supply.

“Our cottonii processing is only 30 percent, because there is no raw seaweed. We [currently] rely on Indonesia, Vietnam and Cambodia for supply,” he said.

The SIAP chief said the lack of local seaweed supply can be traced to the inability of farmers to get financing for their farming venture.

“In the past, [seaweed-processing companies] extend loans to farmers and if they default, companies can write off their loans. Now, we can no longer do that,” said Dakay.

Benjamin Tabios Jr., assistant director of the Bureau of Fisheries and Aquatic Resources, said the agency’s hands are practically tied because there is no enabling law that gives them the authority to finance seaweed farmers.

“Nowhere can you find in the Fisheries Code a specific language on financing for the seaweed industry,” said Tabios.

Seaweed is one of the top 10 export winners of the Philippines. In 2008 the value of seaweeds and carageenan exports reached $122 million, according to Department of Agriculture figures.

EU gets 'Euro-leaf' logo for organic food

BBC News

The logo will soon appear on food packages across the EU

A new EU-wide "Euro-leaf" logo will be compulsory from 1 July for all pre-packaged organic food produced in any of the 27 EU member states.

The green logo, featuring the 12 EU stars in the shape of a leaf, will be optional for imported produce.

Existing national logos for organic food will be allowed to appear next to the new EU logo.

A German student won a competition to design the new symbol. Dusan Milenkovic got a prize of 6,000 euros (£5,254).

Some 130,000 people voted online to choose the symbol and Mr Milenkovic's entry got 63% of the overall vote. The competition was organised by the European Commission.

Car rally tours architectural landmarks for greener Jakarta

Eny Wulandari, The Jakarta Post, Jakarta | Mon, 02/08/2010 10:04 AM

Ride on: Members of Mercedes-Benz Club Indonesia convoy in "Mercedes-Benz Rally Batavia: Tribute to Indonesia" on Jl. Medan Merdeka Selatan in Jakarta on Sunday. The convoy also planted 3,000 trees along Jl. Sedyatmo and the East and West Flood Canals. JP/Wendra Ajistyatama

More than 150 vintage car connoisseurs joined the Rally Batavia II on Sunday to visit some the city’s historical spots and to witness the planting of 3,000 trees as part of efforts to make Jakarta greener.

Participants drove vintage and classic Mercedes-Benz models from 1953 to 2009 during the event, that also marked the 40th anniversary of the German carmaker’s presence in Indonesia.

“The rally was fun. We got to see places that we did not know before,” Yuniadi H. Hartono, one of the participants, said.

He added the event had also given him and other participants a chance to share with underprivileged children at the Darussa’adah Islamic Foundation by donating school equipment.

The rally began at City Hall and ended at Pintu Satu, Senayan.

During the five-hour rally, participants passed through old sites, such as the Schouburg building (now the Jakarta Arts Playhouse), Gedong Joang 45 and the National Gallery in Central Jakarta.

Apart from passing by the architectural landmarks, participants also witnessed the planting of a trembesi (rain tree) by Jakarta Governor Fauzi Bowo along Jl. Sultan Agung, South Jakarta.

Around 300 rain trees with heights of between 5 to 6 meters were planted. The same number of trees were planted along the Sedyatmo toll road while more than 2,000 trees were planted in the East Flood Canal area.

The president and CEO of Mercedes-Benz Indonesia, Rudi Borgenheimer, said the number of trees planted was the symbol of what they had achieved last year.

In 2009, the company sold 2,884 units.

“We want to continue [doing this activity] next year as part of our corporate social responsibility [CSR] program,” Borgenheimer said.

The governor said after the planting that the city parks and cemeteries agency would look after the trees.

“Some auto firms like Honda and Toyota Astra have given their support for the planting activity. I hope there will be more corporations doing the same,” Fauzi said.

South Jakarta Mayor Sahrul Effendi said that a similar planting activity would be conducted by other companies in Tebet this month.

“Apart from companies, we expect residents to plant trees around their neighborhoods,” Sahrul said.

The city administration is encouraging the public and companies to plant trees to add green space and minimize the risks of possible floods.

In 1965, more than 35 percent of Jakarta was made up of green areas, but this has been shrinking ever since. Currently, green areas in Jakarta account for only 9.3 percent of the city’s 661,000 square meters of land, far less than the target of 30 percent set by the 2007 Spatial Planning Law.

Trains from Japan to arrive in March

Indah Setiawati, The Jakarta Post, Jakarta | Mon, 02/08/2010 12:03 PM

Commuters in the city and surrounding areas will see the arrival of 10 of 40 used-electric train carriages imported from Japan in March, an official said.

“Every month, starting March, we will receive 10 carriages until June,” corporate secretary of PT KAI Commuter Jabodetabek (KCJ) Makmur Syaheran told The Jakarta Post.

The imported carriages, produced between the 1980s and 1990s, would add to the existing 386 electric trains. Makmur refused to reveal the trains’ prices.

The KCJ serves commuting routes across the Greater Jakarta area, including tracks linking the city’s main stations to Serpong, Bogor, Depok, Tangerang and Bekasi in Greater Jakarta.

Makmur said the KCJ, which has become a subsidiary of state-owned railway company PT Kereta Api (KA) since August 2008, tried to improve service quality by providing more carriages and repairing a number of train stations.

This month, he added, his company would open a bidding process for another procurement of 48 used carriages from Japan.

“We will procure carriages for electric trains every year. This is part of our effort to increase comfort quality,” he said.

With regard to the renovation of 17 train stations, Makmur said, this month it had entered the first phase, with Juanda station in Central Jakarta, for example, to be equipped with new benches.

He added that street vendors sprawling at the platform would be relocated.

Makmur said the KCJ would also develop an electronic ticketing system to many trains to curb the number of illegal passengers.

A resident of Depok Saleh Purwanto who commuted daily to his workplace in Jakarta, said he would welcome the imported used trains, saying that the news had been long awaited.

He said, however, that the additional number of trains would be meaningless if the KCJ did not improve their daily operational condition.

He said he expected on-time arrivals and departures of the electric train, but was often disappointed when faced with sudden schedule delays.

“Recently, the delay often happens Monday,” he said.

He said the delays were usually caused by train damage and troubled signals.

“If the problems are known, why doesn’t the company provide backup trains or evacuate passengers when the train stops before arriving at its destination?” he said.

Volunteer group KRLmania urged PT KAI Commuter Jabodetabek that the imported trains replaced economy-class electric trains that were unreliable.

The editorial page of the group’s website stated that PT KA should work on improving the signaling system of the electric trains, making it more reliable.

The KCJ currently manages 170 kilometers of railway lines and 56 railway stations.

It was reported that approximately 400,000 passengers from Greater Jakarta now use the trains every day, an increase from 325,000 last year. The KCJ targets to attract 1 million passengers per day by 2012. Furthermore, in 2014 it targets to carry 3 million passengers per day.

In order to improve its service, the company revealed that it would take all non-AC economy-class trains out of service and replace them with AC economy-class trains by 2011.

So far, more than 40 stations allow passengers to easily pass through without tickets.

It is common to see passengers on train roofs during peak hour. Incidents where illegal passengers were electrocuted were reported in 2009.

PRC Gets $135 Million ADB Loan for Power Plant Using New Coal Technology

Asian Development Bank (ADB) , 8 February 2010

MANILA, PHILIPPINES - The Asian Development Bank (ADB) is supporting the construction and operation of a coal-fired integrated gasification combined cycle (IGCC) power plant in the People’s Republic of China (PRC), the first such plant in a developing nation.

The ADB Board of Directors today approved a $135 million loan to build a 250-megawatt IGCC plant in Tianjin City that can generate up to 1,470 gigawatt-hours of electricity every year.

PRC is the world’s largest coal producer and consumer. Its heavy use is causing serious pollution, including sharply lowered air quality and widespread acid rain. The large coal usage is also causing global concerns due to rising greenhouse gas (GHG) emissions. In response, PRC has launched a clean coal power generation program, GreenGen, to sharply reduce pollution as well as lower the GHG emissions, with the Tianjin project being the cornerstone of the first phase.

ADB is also providing $1.25 million in technical assistance to pave the way for the second and third phases of the program which will result in a scaled-up IGCC plant fitted with carbon capture and storage technology by 2013.

Plants using IGCC technology turn coal into a synthetic gas, removing impurities, before the gas is burned in a gas turbine. It is more efficient than other clean coal technologies and emits less GHG and only a fraction of sulphur dioxide and nitrogen oxide pollutants, but its adoption has been slow due to high costs and some perceived technology complexity and risks.

The advent of IGCC technology combined with a carbon dioxide capture and storage function, however, has provided fresh impetus for its use, with studies showing that it is now the least-cost option to cut carbon dioxide emissions from coal-fired power plants by up to 90%.

“The project will demonstrate the advantages of a technology with the potential for large greenhouse gas emission reductions. Its successful implementation will bolster the confidence of investors, project developers, and policymakers leading to scaled-up IGCC power plants and their expanded deployment,” said Ashok Bhargava, Principal Energy Specialist in ADB’s East Asia Department.

To help curb risks linked to the adoption of the new technology and to keep costs down, ADB is providing a $5 million grant from its Climate Change Fund to finance direct supervision and technical support from the component suppliers during the critical initial operation and maintenance phase. It will also be used to help strengthen project management capacity and to ensure compliance with key safeguards.

As the IGCC technology reduces coal use and GHG emissions, the project is expected to be eligible for carbon credits under the Clean Development Mechanism (CDM) of the Kyoto Protocol. ADB is providing technical support to help with the CDM registration process.

ADB’s loan from its ordinary capital resources makes up 32% of the total project cost of $419.59 million. The loan has a 26-year term, including a grace period of six years, with the interest rate determined in accordance with ADB’s LIBOR-based lending facility.

The loan component is due for completion by June 2012 and the grant component by June 2015.

The remaining costs will be funded from equity contributions of $84 million, a loan of $195.59 million from a group of local banks, and the grant from ADB’s Climate Change Fund - established in 2008 to invest in projects which address the causes and consequences of climate change.

China Huaneng Group, the managing partner of the government’s GreenGen program, is the executing agency for the project.

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