Maluku invited to organize "Ambon Night" in Darwin

Antara News, Thursday, June 17, 2010 13:50 WIB

Ambon, Maluku (ANTARA News) - Australian Northern Territorial Governor Tom Pauling has invited Maluku province to promote its tourism potential through "Ambon Night" in Darwin in October this year.

Maluku Vice Governor Said Assagaff said here on Thursday Pauling forwarded the invitation to him when he visited Darwin on June 8-10, 2010.

"The government of Australian Northern Territory is interested in Maluku tourism, especially traditional culture and arts, so it invites us to organize Ambon Night in Darwin in October," Assagaff said.

He said the invitation from Australia was part of a realization in Ambon-Darwin sister city cooperation which has been in effective for years.

Assagaff said he would coordinate the Australia`s invitation with Maluku branch of Indonesian Tours and Travel Agencies Association (Asita) and the district heads/mayors to make use of such a strategic opportunity.

Besides, Governor Tom Pauling also invited Maluku`s under-18 soccer team to play in Darwin in May next year.

"Governor Tom Pauling is planning a friendly soccer competition between soccer teams from Northern Territory, Timor Leste, and Maluku," Assagaff said.

He said the Australian Northern Territory governor even agreed to send an aircraft to transport the 25 players including sport managers and officials from Maluku to Darwin for the soccer game.

"Transportation and accommodation will be provided by the government of Northern Territory while food will be prepared by the Indonesian Consulate General in Darwin," Assagaff said.

Assagaff promptly welcomed the invitation from Australia because the soccer game would be a tryout for the team from Maluku whose members are under 18 years of age.

"It is an honor for Maluku and Timor Leste soccer team under 18 to play in Darwin," said the Maluku vice governor.

Assagaff added that he would organize it with the provincial administrators and Maluku branch of All Indonesian Football Association (PSSI) to prepare the team for the international friendship match.

Garuda to install IT facilities in aircraft in 2011

Antara News, Thursday, June 17, 2010 04:21 WIB | Economic & Business

Jakarta (ANTARA News) - PT Garuda Indonesia confirmed on Wednesday that it would equip its aircraft with in-flight information technology facilities in 2011 to improve its service to passengers.

"We will do it next year. Passengers can then communicate through an internet service and also send short text messages," its president director, Emirsyah Satar, said after signing a memorandum of understanding on T-Cash ticket payment with Telkomsel here on Wednesday.

He said all new Garuda planes would be equipped with mobile technology and later all Garuda planes will also be given the capability.

He said the technology will allow passengers to communicate using the short text message service (SMS) and operate laptops on board aircraft.

"The technology has been developed abroad and does not disrupt the air navigation system. It will not include phone calls," he said.

Regarding the regulation put in Law Number 1 of 2009 that bans passengers from using telecommunication facilities while aboard a plane, Emirsyah said he would discuss the matter with the government.

"Later we will discuss it with the ministry of transportation," he said.

On the cooperation with Telkomsel he said that it would make it easier for would-be passengers to buy ickets or make Garuda seat reservations by phone.

"Telkomsel customers totalling 86 millions will benefit from the cooperation," he said.

Telkomsel president director Sarwoto Atmosutarno said he would exploit T-Cash facility to make it easier for Telkomsel customers to buy Garuda tickets.

T-Cash is one of the facilities Telkomsel is developing along with mobile payment and mobile advertising, he said.

Regarding the House of Representatives` (DPR) wish for reduction in the hajj flight cost, Emirsyah said Garuda would accept whatever the government and the DPR would decide.

He said although it might reduce the company`s margin, service to hajj passengers would not decline.

"We will give the best possible service to them. What is important is the flight is smooth and Garuda does not lose," he said.

He said the hajj flight cost was determined by the world fuel price.

"If the contract with the religious affairs ministry has been signed and at the time the hajj pilgrimage season begins, the fuel price rises, that will be our risk," he said.

Global fund provides rp17.3 billion for AIDS handling in Indonesia

Antara News, Tuesday, June 15, 2010 17:59 WIB

Mataram, West Nusa Tenggara (ANTARA News) - The United Nations Global Fund has provided Indonesia with Rp17.31 billion for the handling of infectious diseases in three provinces, an AIDS commission official said.

"The three provinces which have received the assistance from the Global Fund are West Nusa Tenggara (NTB), East Nusa Tenggara (NTT) and Maluku," National AIDS Commission Secretary Nafsiah Mboi said here on Tuesday.

The funds will be used to handle three types of infectious diseases, namely AIDS, tuberculosis (TBC) and malaria.

She said NTB got an allocation worth Rp5.05 billion, NTT Rp7.19 billion and Maluku Rp7.07 billion.

Nafsiah Mboi said the aim of the assistance was to accelerate the efforts to prevent and handle HIV/AIDS cases in the country.

The funds come on top of those made available in state and regional budgets.

RI, Iraq agree to remove trade barriers

The Jakarta Post, Jakarta | Mon, 06/14/2010 10:04 AM

Indonesia and Iraq have agreed to eliminate trade barriers and provide incentives to increase bilateral trade volumes, which suffered a sharp decline last year.

During a meeting in Jakarta last week, the two countries’ senior trade officials agreed to establish a task force in the next three months to identify barriers in bilateral trade and investment.

Indonesian Trade Minister Mari Elka Pangestu said the task force would explore actions and possible incentives to promote the two countries’ trade volume.

Iraq had, for example, offered Indonesian businessmen wider investment opportunities in various sectors — energy and oil and gas, telecommunications, petrochemicals, pharmaceuticals, banking and housing construction projects — as part of a program to promote trade relations.

“Indonesia and Iraq have a lot of business potential that hasn’t been optimally explored,” Mari said at a press conference Saturday, after the sixth session of the Indonesia-Iraq joint commission meeting on economic, scientific and technical cooperation.

The meeting was also attended by acting Iraqi Trade Minister Safaaldeen Mohammed Abdulhakeem Al-Safi.

According to the Indonesian Trade Ministry, bilateral trade between Indonesia and Iraq

dropped significantly to US$41.26 million in 2009 from $265.59 million in 2008.

Mari said the total trade balance during the period of 2005 to 2009 did not reflected the actual potential. “We are quite optimistic that in the next three years, two-way trade can return to the levels recorded in 2008,” she said.

The ministry said Indonesia’s non-oil and gas exports to Iraq, which mainly consisted of milk, soap, cream, margarine, television sets and tires, reached $40.57 million in 2009. Before the US-led invasion in 2003, Indonesia’s exports of tea reached $70 million a year.

As part of the agreement, Mari said Indonesia invited Iraqi businesspeople to participate in the Trade Expo Indonesia in October 13 to 17 this year, while Indonesian investors were invited to join the Baghdad Fair in November.

“The two countries have also agreed to establish a Trading House in Baghdad and the Indonesian-Iraqi Business Council,” Mari said.

Abdulhakeem Al-Safi said his government had invited Indonesian entrepreneurs to take part in the “rebuilding Iraq” program that offered huge opportunities both in infrastructure and construction development projects.

He promised foreign investors, including those from Indonesia, easier procedures to getting business permits. “We also offer a tax holiday and other kinds of tax exemption for foreign investors,” he said.

Abdulhakeem acknowledged that security remained a problem in his country. “But it’s not as bad as what is being published by western media. Our lives are getting back to normal,” he added.

Rp219 billion for housing

Antara News, Sunday, June 13, 2010 23:40 WIB

Ternate, N Maluku (ANTARA News) - The office of the Ministry of People`s Housing has allocated Rp219 billion to finance a housing project designed for the people in Halmahera Utara district, North Maluku province, the Halut district head said.

Halmahera Utara District Head Hein Namotemo said here on Sunday that the project constituted the realization of a housing project proposal made by the Halut regional government to the ministry of people`s housing sometime ago.

He said that the local government had proposed a budget of Rp371 billion for the construction of the housing project but only Rp219 billion was approved.

The district is the only district in North Maluku which got a budget allocation for a housing project in 2010, he said.

Banks pledge Rp 3.7 trillion for water projects

Nani Afrida, The Jakarta Post, Jakarta | Sat, 06/12/2010 11:34 AM

Three state-owned banks have signed a commitment to disburse a total of Rp 3.7 trillion (US$402 million) in credit to finance water distribution projects commissioned by the directorate general for urban development, Cipta Karya.

The banks are Bank BNI, Bank BRI and Bank Jabar Banten. In an agreement between parties signed on Friday, BNI will allocate Rp 1.8 trillion, BRI Rp 1.8 trillion and Jabar Banten Rp 100 billion.

“This is the first time that banks have given financial support to water companies. Usually, these companies rely heavily on the state budget or foreign loans,” Cipta Karya director general Budi Yuwono Prawirosudiorjo.

Budi said the funds would be channeled to water distribution companies owned by regional government (PDAM). He added that 75 companies had applied for the loan, 15 of which had received approval from the banks. There are 393 water companies in Indonesia.

“The water companies should have healthy financial performance or have to have restructured their debt,” he said, referring to the requirements for water companies to access the fund.

BNI business banking director Krisna Suparto said BNI was interested in offering credit to

water companies because the water industry had “a bright future, as do as other infrastructure

projects such as electricity or roads”.

He added that better management of water distribution was key to improving the lives of the

people. In Indonesia, about 70 million people have no access to clean drinking water.

He added that offering credit to water companies would boost BNI’s credit disbursement by 10 percent.

“We will offer a special rate for water companies, as the government will subsidize the rate by 5 percent,” he said, adding that the rate would follow the state bank’s rate and that the credit had a 10-year maturity period.

Bank Mandiri, Indonesia largest bank by assets, also plans to disburse credit worth Rp 1.8 trillion to water companies.

Budi said Indonesia required Rp 33 trillion in the next five years to construct water installations to provide clean drinking water.

“The government has allocated Rp 11.8 trillion from the budget. We still require about Rp 22 trillion and expect to source this from bank loans,” Budi said.

According to a Country Program report from UN Habitat 2008-2009, Indonesians’ access to clean water facilities remained relatively low.

World Bank provides PLN with us$750 million

Antara News, Saturday, June 12, 2010 07:44 WIB

Jakarta (ANTARA News) - The World Bank has approved a new investment of US$750 million for Indonesia to help increase the government`s and state power company PLN`s programs in the manpower and training sector, and regional administration investment programs.

World Bank country director for Indonesia Joachim Von Amsberg said in Jakarta that in the manpower sector, a US$30 million Additional Funding had been agreed to support efforts of bolstering PLN`s management by way of Enterprise Resource Planning (ERP).

"In the present global economic era full of uncertainties, new investments are proof of self-confidence of and support to Indonesia. We are very proud to support the investment programs of the Indonesian government and PLN," he said.

PLN`s finance director Setio Anggoro Dewo said the ERP is an integrated information technological system which could help improve and increase the management of PLN`s human, material, and financial resources.

"The approved projects are to expand the ERP system to Sumatera and Sulawesi following the successful application in Jawa and Bali, which has raised managerial capabilities with the availability of accurate financial information enabling us to make decisions based on more accurate information," he said.

He also said that in the education sector, an additional funding of US$500 million has been approved to help fund and apply BOS-KITA (school operational assistance, improved knowledge for transparency and accountability) designed to bolster school-based management and public participation which would improve expenditures on education in Indonesia.

BOS-KITA is a program based on the success of the government`s BOS-program of raising the quality of education for children aged 7 to 15. The new loan brings the total World Bank funding for BOS-KITA to US$1.1 billion.

He said the latest was a new loan of US$220 million to increase regional administration accountability in the use of special allocation funds (DAK), which in 2010 reached Rp21.13 billion or 2.0 pct of the state budget. This project will receive back the current DAK grant for infrastructure projects based on the concrete results from the participating regional administrations which had been reported and verified.

The financial and development supervisory body (BPKP) verifies the development results. "A total of 81 regional administrations met the coditions to take part in this project," he said.

Indonesia going green

Antara News, by Andi Abdussalam, Saturday, June 12, 2010 12:23 WIB

Jakarta (ANTARA News) - In an effort to create a clean and healthy environment and overcome climate change, the Indonesian government is implementing a green concept and called on various businesses to apply it as part of their attempt to achieve their emission reduction program by 26 percent by 2020.

"Development efforts in Indonesia must implement the Green Development or Green Economy concepts which are in essence friendliness to the environment," Coordinating Minister for Economic Affairs Hatta Radjasa said over the weekend.

He said Indonesia`s development efforts are facing three big challenges, namely food and energy sufficiency and provision of efficient energy supplies but to meet all these, development efforts must be carried out based on a green concept to balance economic growth with environmental conservation.

"Therefore, the Green Economy concept is suitable for application in Indonesia`s development projects," he said.

The minister made the remarks after attending the topping off of Grand Royal Panghegar Apartment which implemented the Green Economy concept in Bandung, West Java. On the occasion Hatta expressed his appreciation to the Grand Royal Pangegar owner for having implemented the concept.

"I will report it to President Susilo Bambang Yudhoyono, about this," he said.

President Yudhoyono said on Thursday the government must prioritize green economic development strategy which is environment friendly in order to prevent ecosystem degradation that demands big rehabilitation cost. It must implement triple-track-plus-one economic strategy, namely pro growth, pro job, pro poor, plus pro environment.

Therefore, Indonesia will continue to develop a green economic concept in an effort to improve the welfare of its people and overcome the threat of climate change. "The green economy has become a kind of new economic ideology in the world in the 21st century," the President said.

Green economy is needed because the world today is facing a great challenge from climate change the impact of which is already being felt with the emergence of a number of crises in the world such as food, energy and water crises.

"Green economy is a life style in the world and in Indonesia, a system which does not exploit to the full extent the energy and natural resources," he said.

He said the environmental aspect must not be forgotten in the economic development, or otherwise the rehabilitation works to improve the damaged environment might reach 20 percent of the GDP.

"There is an interesting article, which writes that economic-driven national development which ignoring the environment, in the long term, will cost 20 percent of the GDP for rehabilitating damaged environment. We should be aware of that," he said.

Therefore, the green concept must be applied in carrying out various development programs, including the tourism, property development and the real sectors besides other sectors such as transportation.

Many business sectors have responded to the green concept. In the tourism sector, some hotels and aviation have implemented it.

The Indonesian National Air Carriers Association (INACA) has the "Green Energy" program to reduce gas emissions from airplanes. Transportation Minister Freddy Numberi said he supported the Green Energy campaign in the transportation sector, especially in air transportation, as it would help mitigate the impact of global warming.

"By applying the Green Energy concept, gas emission in Indonesia could be cut by up to 26 percent by 2020," Numberi said when talking on the sidelines of an INACA meeting. Every airline operator should contribute to the success of the program, he said.

INACA Chairman Emirsyah Satar, concurrently president director of Garuda Indonesia airways, said Garuda has officially become one of 15 airlines in the world that have joined the carbon offsetting effort. Aviation industry growth in Indonesia is now the third highest in the world after China and India, according to Satar.

Indonesia`s plan to reduce gas emissions by 26 percent until 2020 will cost around Rp400 trillion. "We hope not all of the funds will have to come from the government. The figure is dynamic or can still change," the secretary of the state minister for national development planning, Sjahrial Loetan, said meanwhile.

Some hotels have also followed suit. The Bali Hotels Association (BHA), a group of over 100 star-rated hotels in Bali held an environment workshop at Kuta`s Hard Rock Hotel, as a part of series to provide a new concept of green for everyone.

"The workshop contributes to BHA`s endeavors to furthermore educate and train its employees as part of its social responsibility to provide a better and cleaner future for all local communities", Gareth Warne, BHA Director of Environment, and GM of Nusa Lembongan Resort & Sail Sensations Catamaran, said in Denpasar, recently.

During eight lectures over 100 participants had been informed of practical hands on solutions on saving energy, water management, recycling, carbon offset, and green corporate social responsibility programs.

In the property sector, the office of the Ministry of People`s Housing is drawing a regulation on incentives for developers which support the green property development concept. "We are preparing it as part of our commitment to facing the global climate change challenge," Iskandar Saleh, secretary to the Minister for People?s Housing, said.

The government is also planning to provide certification for the buildings or housings built by developers who are able to apply the eco-green or green property concept.

In this case, the Jakarta Garden City (JGC) is determined to build 9,000 houses within 10-15 years ahead with the green property concept.

"We have strong determination to develop these houses with the green property concept in line with the appreciation we received from the international real estate federation (FIABCI) in Bali recently," said President Director of JGC Lim Seng Bin.

In the telecommunications sector, Telkomsel has also gone green. Telkomsel is a telecommunications operator which has the biggest number of go-green base transceiver stations (BTS), or 132 bts in Southeast Asia.

"Of the 132 units of BTS, some 20 BTS are already developed with the go-green concept, of which 14 BTS are using solar cells and six others using fuel cells," Regional General Manager Network Operation of Telkomsel for North Sumatra Moelqy Furqan said.

Kerinci district to build geothermal power plant

Antara News, Thursday, June 10, 2010 22:24 WIB

Jambi (ANTARA News) - The Kerinci district government plans to build a geothermal power plant with a capacity of 2x55 megawatts to meet rising power needs in Jambi province.

"Jambi province will need 275 MW of electrical power in the next five years, almost a two-fold increase from the current peak load of 150 MW," Irmansyah Herman, the head of the Jambi provincial mining and energy office, said here on Thursday.

He said 110 MW of the province`s power needs was currently supplied by power plants owned by state power utilities PT PLN in Jambi and the remaining 40 percent by the Ombilin hydro-power plant in neighboring West Sumatra province.

To meet power demand on its own, the Jambi provincial government was making constant efforts to develop power plants by taking advantage of potential natural resources such as water, coal and geothermal energy, he said.

He said the 2x55 MW capacity geothermal power plant would be built at Lempur village, Gunung Raya subdistrict, Kerinci district, by state oil and gas company PT Pertamina.

Pertamina was expected to embark on geothermal drilling activities at the village next year, he said.

He said PT Bukaka Teknik Utama was also determined to continue the construction of a hydro power plant with a capacity of 2x90 MW in Jambi.

Japan needs 117 nurses from Indonesia

Antara News, Wednesday, June 9, 2010 13:31 WIB

Bandung, West Java (ANTARA News) - Japan needs 117 nurses from Indonesia in 2010 to work in various hospitals and nursing houses in the East Asia country, an envoy said.

Japanese Ambassador to Indonesia Kajiro Shiojiri made the statement in an opening ceremony of training course for would-be nurses and caregivers, at the Indonesian Education University (UPI), in Bandung, according to an e-mailed press release from the National Agency of Indonesian Manpower Protection and Placement, here, Wednesday.

The governments of Indonesia and Japan have signed Indonesia-Japan Economic Partnership Agreement (IJEPA), stating, among other things, that Japan needs one thousand nurses to work in the country`s hospitals and caregivers to work in nursing houses.

The Japanese ambassador said his country would need more caregivers for nursing houses than nurses for hospitals as Japan`s population of old ages is increasing in line with the improvement in the people`s live expectancy rate.

Ambassador Shiojiri said his nation would need nurses until five years to come, and the cooperation problem would be evaluated.

The government of Japan hoped that scholarship providers such as The Association for Overseas Technical Scholarship (AOTS) of Japan, would help better prepare intellectual and skills of Indonesia`s would-be nurses.

Maluku signs agreement with China’s Henan province

M. Azis Tunny, The Jakarta Post, Ambon | Tue, 06/08/2010 10:40 AM

Maluku took another step to rebuild the province after years of communal conflict as it signed an agreement with China’s Henan province Monday.

The agreement, which was described as a first step towards establishing a sister city relationship, was signed by Maluku Governor Karel Albert Ralahalu and Henan Vice Governor Song Xuan Tao in Ambon on Monday.

Ralaharu said signing the memorandum of understanding (MoU) showed that Maluku and Henan were serious about improving cooperation to develop both provinces.

“For Maluku, this cooperation is an important effort to optimize our potential and accelerate growth in the province,” he said.

Both provincial administrations were eager to expand the MoU and develop sister province ties, he added.

“I hope the cooperation will mutually benefit the welfare of people of both provinces,” he said.

A sister province cooperation agreement is expected to be signed at an event with President Susilo Bambang Yudhoyono on Aug. 3 that has been scheduled to coincide with the Sail Banda festival in Ambon.

Henan Vice Governor Song said that the agreement was a landmark for both provinces and that the Chinese delegation had already conducted fisheries research in Maluku. Song was accompanied by an economic and trade team.

The two delegations discussed industry, construction, power, logistics, agriculture and fisheries.

Song said he was confident that economic cooperation between the provinces would improve in the near future.

Song said that Henan province was ranked eighth in China for production of food; minerals, oil and gas; non-ferrous metals and other mineral resources.

The province has an integrated industrial system and is an important production center in China.

Song said Indonesia’s economy was the largest in ASEAN, and that agriculture and the oil and gas industries were the pillars of the economy. Henan is a province which is influential in the field of new industries and culture, he added.

Song said that they could achieve the same goals by signing a sister province cooperation agreement.

The strategic partnership between China and Indonesia that was established in 2005 accelerated the arrival of a new phase of development.

In 2009, Henan’s provincial administration and Indonesia’s Industrial Ministry signed an agreement to increase exchange and improve cooperation in the industry and technology sectors.

Cooperation between the two provinces began when a delegation from Maluku visited Henan earlier this year.

Henan province trade department director Li Qing Shu said Henan was eager to implement an open strategy and improve the investment climate for domestic and foreign investors.

He said the cooperation between Henan and Indonesia in the field of trade was growing.

Maluku province was ravaged by sectarian fighting between 1999 and 2001 that left at least 6,000 people dead.

Zurich now in Indonesia

The Strait Times, Jun 7, 2010

Zurich Financial Services said the acquisition would mark the first step in its expansion plans in Indonesia. -- PHOTO: INTERNET

ZURICH (Switzerland) - SWISS insurer Zurich Financial Services said on Monday it had gained a foothold in Indonesia's fast growing life insurance market with an agreement to buy 80 per cent of Indonesian firm PT Mayapada Life.

The Swiss group said the acquisition would mark the first step in its expansion plans in Indonesia - one of the world's most populous nations with some 240 million inhabitants - and a building block for business growth in Asia.

Mayapada's eponymous parent group will continue to hold 20 per cent of the company, Zurich said in a statement. The deal is due to be concluded in the third quarter, subject to regulatory approval.

'The acquisition of Mayapada Life is a first step in Zurich Life's expansion plans in Indonesia,' said Mario Greco, chief executive of Zurich's Global Life section. 'The Mayapada Group will be a strong local partner as we seek to build key relationships to grow our business in the Asia-Pacific region.'

Mr Greco also highlighted the 'rapidly growing' portion of the Indonesian population with savings and insurance needs.

Jakarta-based Mayapada Life had gross written premiums of 1.7 million dollars (S$2.4 million) at the end of 2009. -- AFP

RI ambassador opens Moscow "Halal" Expo 2010

Antara News, Tuesday, June 8, 2010 01:59 WIB

London (ANTARA News) - The Indonesian ambassador to Russia and Muslim leaders opened an exhibition of "halal" (allowed for Muslims) products, the very first of its kind in Russia, the International Moscow Halal Expo 2010, at Crocus Expo, Moscow, from June 7 to 9, 2010.

The 60 participants came from Russia, Belarussia, Germany, Turkey, United Arab Emirates, Bahrain, and Indonesia, Counsellor at the Indonesian embassy in Moscow Aji Surya told Antara`s London correspondent Monday.

Aji Surya said the exhibition is an answer to the needs of the 25 million Muslims in Rusia.

The event not only displays food and drinks, but also cosmetics, household utensils, and souvenirs.

Five Indonesian companies have sent their products.

On the occasion of the expo, a conference was also held on the development of an Islamic financial system in Russia, business meetings, and fashion shows.

By the end of June, a team from the religious ministry will provide supplies and directives on the management of the haj pilgrimage.

Green concept compulsory for all development projects : minister

Antara News, Sunday, June 6, 2010 03:10 WIB

Bandung, West Java (ANTARA News) - Coordinating Minister for Economic Affairs Hatta Radjasa said all development efforts in Indonesia must be carried out based on a green concept to balance economic growth with environmental conservation.

"Development efforts in Indonesia must implement the Green Development or Green Economy concepts which are in essence friendliness to the environment," he said after attending the topping off of Grand Royal Panghegar Apartment on Jalan Merdeka here on Saturday.

He said Indonesia`s development efforts are facing three big challenges, namely food and energy sufficiency and provision of efficient energy supplies.

"Therefore, the Green Economy concept is suitable for application in Indonesia`s development projects," he said.

Hatta on the occasion expressed his appreciation to the Grand Royal Pangegar owner for having implemented the Green Economy concept.

"I will report it to Pak SBY (Mr Susilo Bambang Yudhoyono, the President)," he said.

The ceremony was also attended by the president director of PT Panghegar Group, Cecep Rusmana, and West Java governor Ahmad Heryawan.

The structural construction of the 21-floor apartment project since January 2009 has now reached the highest floor.

Bandung mayor Dada Rosada meanwhile said in his speech on the occasion he hoped the Grand Royal Panghegar Apartment would become an important public notice about the presence of apartments in the city.

He said Bandung, the capital of West Java province, still needs a lot of apartments. "The city administration itself plans to develop flats in 10 locations," he said.

On the occasion the Grand Royal Panghegar handed over 1,000 raintree saplings to the city administration to help regreen the city.

Indonesia plans to buy more submarines, C-130s

Reuters, By Harry Suhartono and Nopporn Wong-Anan, Sat Jun 5, 2010 10:27am EDT

SINGAPORE, June 5 (Reuters) - Indonesia plans to increase the size of its submarine fleet over the next two years to defend its territory as well as protect international shipping lanes, its defence minister said on Saturday.

Purnomo Yusgiantoro also told Reuters the country was discussing buying 10 more C-130 military transport aircraft from Lockheed Martin (LMT.N) but had not come to any agreement.

Indonesia, the world's largest archipelago with more than 17,000 islands, lies across shipping lanes between the Indian and Pacific oceans as well as between Asia and Australia, heavily used for transporting commodities and energy. It currently has two submarines.

Singapore put out a warning earlier this year about possible attacks on ships in the Malacca Strait, one of the world's busiest shipping lanes that lies between the city state, Indonesia and Malaysia and carries about 40 percent of global trade. [ID:nSGE62409F]

"We have several countries that we think are able to supply them (submarines). We want to make sure that it would be compatible to our needs as well as our sea (conditions)," Yusgiantoro said in an interview on the sidelines of the Shangri-La Dialogue security conference in Singapore.

"They are very important in order for us to guard sea lanes. We are going to have that in a couple of years," he said, without giving further details.

Yusgiantoro also said the government had earmarked funds in this year's budget to modernise some of its 32 C-130s.

"We can use that (plane) not only to bring troops, but also for humanitarian missions. We are ready to buy but we are still in discussions with the seller."

Indonesia set aside 42 trillion rupiah ($4.6 billion) in 2010 for defence spending, with most earmarked for operating expenditure for its 550,000-strong military force.

The country plans to boost its defence spending up to 1.5 percent of gross domestic product by 2014 from about 0.7-0.8 percent in 2010, among the lowest in the region.

Yusgiantoro held a meeting with U.S. Defence Secretary Robert Gates on Friday, which he characterised as "very good".

Indonesia is currently working to improve its military ties with the United States, including removing a ban on military training for its special forces, put in place over rights abuses blamed on elite troops.

"I think things will become more positive," Yusgiantoro said, but he did not comment on when the ban was likely to be removed.

Yusgiantoro, a Catholic minister in the world's most populous Muslim country, said his nation's defence ties with Washington were akin to a marriage, which could be rocky at times.

"I don't see any problem with our cooperation. But you know you always have little things going on, something like little arguments between you and your wife after she found a picture of another girl in your pocket," he said.

RI, Mozambique to cooperate in cooperative empowerment

Antara News, Saturday, June 5, 2010 21:02 WIB

Jakarta (ANTARA News) - Indonesia and Mozambique will soon cooperate in Small and Medium Enterprises Cooperative (KUKM) empowerment.

Cooperatives and Small and Medium Enterprises Minister Sjarifuddin Hassan said here on Friday that a memorandum of understanding (MoU) on the cooperation would be signed on Monday, June 7, 2010.

"We are going to exchange ideas and experiences through the KUKM empowerment cooperation with Mozambique," the minister said, adding that the MoU was about the implementation of such a cooperation between the two countries.

He said capacity building for the KUKM players from Indonesia and Mozambique would also be part of the cooperation.

The KUKM minister said Mozambican ambassador to Indonesia and the industry minister of the country were scheduled to be present to sign the memorandum of understanding with KUKM Ministry.

"The government of Mozambique has discovered that our achievement in cooperatives and small and medium enterprises sector was high enough, although we have yet to be satisfied about it," the minister said.

Sjarifuddin Hassan said he has earlier explored KUKM empowerment cooperation with a number of countries, among others with Egypt to empower water hyacinth as part handicrafts industry, with Japan for One village One Product (OVOP), with the United States in KUKM empowerment, and with Palestine for human resources training.

"In such a cooperation there should be a mutual benefit, in a sense of what we can give to those countries and what we can get from them," the minister said.

RI to apply sustainable CPO standards

Antara News, Saturday, June 5, 2010 01:24 WIB

Jakarta (ANTARA News) - The government will soon apply Indonesia Sustainable Palm Oil (ISPO) standards nationwide to sharpen the competitive edge of the commodity in the international market, an official said.

"I have heard ISPO will be made mandatory. So far, RSPO (Roundtable for Sustainable Palm Oil) has been applied voluntarily," Deputy Trade Minister Mahendra Siregar said here on Friday.

He said the agriculture minister had completed the initial draft of ISPO. The draft had been distributed among various parties for inputs.

"I hope the process will go on so that the ISPO can be issued in the not too distant future," he said.

For the time being, the government would only encourage palm oil producers to abide by the RSPO, he said.

He said the government and domestic palm oil producers had agreed that the issue of environment and good agricultural practices were something unbargainable.

"We have all agreed on the matter. I am optimistic we can continue to develop palm oil for exports in view of its great production potentials," he said.

The issue of sustainable CPO has turned into controversy since the European Union planned to introduce renewable energy directives.

The EU policy gives preference to imported goods produced by means of environmentally-friendly processes and penalties on those produced by polluting the environment.

At least 25% of Donggi gas may go to the domestic market

Alfian and Aditya Suharmoko, The Jakarta Post, Jakarta | Fri, 06/04/2010 12:25 PM

Indonesia may allocate at least 25 percent of gas from Donggi and Matindok fields to the domestic market after years of protracted debate on supply allocations.

The recommendation was made by Vice President Boediono during a recent meeting with economic ministers, Energy and Mineral Resources Minister Darwin Zahedy Saleh said in a text message sent Thursday.

"Vice President *Boediono* recommended that at least 25 percent of the gas be allocated to the domestic market," Darwin said.

However, he added, the recommendation had not been the government's final decision as the ministry was still studying the matter.

"We are still evaluating the matter to find the best and the most realistic option for the country," Darwin said.

However, Coordinating Economic Minister Hatta Rajasa said the government had reached the decision on the gas allocation.

"It's been decided. Next week it will be announced by the Energy and Mineral Resources Ministry," he said at his office.

State oil and gas company PT Pertamina owns 50 percent of the Senoro field, while domestic private energy company PT Medco Energi Internasional holds the remainder. Pertamina fully owns the Matindok field.

Pertamina and Medco intended to export the gas in the form of LNG. They established PT Donggi Senoro LNG to construct and operate the LNG plant.

Pertamina holds a 29 percent participating stake in the venture, while PT Medco Energi Internasional holds 20 percent and Japan's Mitsubishi Corporation holds a controlling 51 percent share.

However, the project's status become uncertain when most of the economic decision making in the 2004-2009 administration was supervised on a day-to-day basis by then vice president Jusuf Kalla.

Kalla decided the Donggi-Senoro LNG should be sold, at least primarily, to the domestic market.

This decision is thought to be the reason why Japan's Kansai Electric Power Co. Inc. terminated its agreement to buy the LNG in August last year. Now three Japanese buyers are still lining up to buy the LNG: Chubu Power Co. Inc., Kyushu Electric Power Company and Korea Gas Corporation (Kogas).

Lukman Mahfoedz, project director at Medco, said he had not known about the Vice President's recommendation, but he said the decision was very welcome.

"We hope the decision has been made," he said.

In an earlier press conference, Lukman said that after the government made its decision on the project, Medco would need about six weeks to formulate the final investment decision (FID).

"We expect to come up with the FID in July this year," he said.

To Agents' Disappointment, Indonesia Keeps Ban on Foreigners Buying Property

The New York Times, by JON GORVETT, June 3, 2010

JAKARTA — Hopes for a change in Indonesia’s restrictive rules on foreign ownership of property were dashed when a major conference of real estate agents on Bali ended last week without an expected government announcement.

“We all thought they were ready to go for it,” said Bagus Adikusumo, director of Colliers International Indonesia. “But then it didn’t happen.”

Only Indonesian citizens are allowed to hold freehold titles in this archipelago republic. And its Constitution limits ownership of land as well.

Foreigners wishing to buy property have had to make purchases through Indonesian proxies, or one of two types of limited lease.

The first is a 30-year renewable lease available to entirely foreign-owned companies; the second is a 25-year renewable “right of use” lease available to individual foreigners.

“The problem is that the second of these leases is not bankable — no bank will lend on a title that is so limited and difficult to change,” said Alwi Bagir Mulachela, secretary general of the Indonesian real estate association. “It’s also not clear what happens if the foreign owner dies — inheritance is not clear in these circumstances.”

The Indonesian government has been eager to increase foreign investment and not be left behind by countries like Cambodia and Vietnam, which have recently eased their foreign ownership laws.

At the conference held last week by the International Real Estate Federation, known as the F.I.A.B.C., agents had expected the government to announce that foreigners would be allowed to buy property with a minimum value of $150,000; to introduce a simplified, 70-year lease that could qualify for bank financing; and to clarify the right of foreigners to inherit.

“I think they backed off first for nationalistic reasons,” Mr. Adikusumo said, “then secondly, because of fears that opening up the market to foreigners would favor luxury house construction at the expense of low-cost mass housing. They will also have to make major changes in the law, even perhaps the Constitution, which would take quite a while to push through Parliament.”

There are some indications that changes may still occur.

“Limiting foreign ownership is no longer the right approach,” the country’s public housing minister, Suharso Monoarfa, said in his speech at the conference.

Mr. Mulachela, of the real estate association, said: “I’m confident we’ll get something by the end of the year. The government says it’s working on it and the Land Office says it is too, so we’re still hoping.”

Chevron, ConocoPhillips sign Indonesia gas supply deal

Reuters, JAKARTA, Mon May 31, 2010 6:29am EDT

May 31 (Reuters) - Chevron Corp (CVX.N), the biggest oil producer in Indonesia, has signed a final supply deal to buy natural gas from ConocoPhillips (COP.N) on Sumatra island, the head of Indonesia's energy watchdog, BPMIGAS, said on Monday.

ConocoPhillips has agreed to two separate deals, amending terms to an existing deal after some politicians complained that the deal was unfair because of the rise in oil prices.

It will supply a total of 77.9 trillion British thermal units of gas during a four-year period, and an additional 1,177 trillion British thermal units over a 12-year period, Priyono, BPMIGAS chief, told reporters.

ConocoPhillips will supply the gas from its fields in South Sumatra.

The gas deal will replace a previous agreement under which Chevron swapped about 50,000 barrels per day (bpd) of crude oil from Duri for about 400 million cubic feet per day of natural gas from ConocoPhillips' gas field in South Sumatra.

"This final deal will guarantee long-term gas supply to support Chevron's operations in Sumatra," Priyono said.

Chevron needs the gas to support technology used to coax more oil from its Duri field in Central Sumatra. The technology, known as steamflood, can enhance recovery on oil fields where output is declining.

Priyono said that Chevron currently produces about 370,000 barrels per day of crude oil, including Minas and Duri, from its operation in Central Sumatra.

Indonesia has turned into a net importer of crude in recent years, as production has slumped after a failure to tap new fields fast enough.

Southeast Asia's biggest economy produced about 1.5 million bpd about a decade ago, but production has now slumped to below 1 million bpd.

(Reporting by Muklis Ali; Editing by Sara Webb)

MCL begins calling tenders for Cepu oil field project

Antara News, Sunday, May 30, 2010 18:12 WIB

Bojonegoro, E Java (ANTARA News) - Mobil Cepu Limted (MCL) has begun calling tenders for Full Field Development (FFD) projects of the Cepu oil/gas field in Bojonegoro, East Java, MCL spokesman said.

"The tender for several FFD projects is now in progress and in deciding the winners it would involve various parties," MCL external relations officer Deddy Afidick said here on Sunday.

Deddy did not disclose the schedule of the tender but a number of Cepu oil and gas projects, which were also called FFD, were facilities designed to put the oil block in full production.

Based on the production scenario, the Cepu peak production would be achieved in 2013. "We hope this tender would proceed smoothly," Afidick said.

The FFD included the central processing facilities (CPF) and other well facilities in the Cepu Block area, he said.

Besides, there would also be a 72-km long onshore oil pipeline network from the Banyu Urip, Cepu Block in Ngasem sub-district, to the sea in Tuban. From the coastal lines to the sea there would also be a 23-km long undersea pipeline network.

A floating storage would be built on-shore which will function to contain oil before it is loaded onto tanker ships.

Supporting projects which are not less important in the Cepu Block included civil works and other supporting infrastructures called engineering procurement and construction (FPC), he said.

Govt allocates rp273 b for Lapindo tourist site

Antara News, Saturday, May 29, 2010 02:26 WIB

Surabaya, E Java (ANTARA News) - The government has set aside Rp273 billion in funds to develop a geological tourist object near the Lapindo mudflow site in Sidoarjo district, East Java, an official said.

"The government through the maritime affairs and fisheries ministry has set aside Rp273 billion in funds to develop Lapindo geological tourist site," East Java Governor Soekarwo said here on Friday.

The 83-hectare geological tourist object would be located north of the mudflow site, he said adding: "President Susilo Bambang Yudhoyono visited the location some time ago."

"The DED (detailed engineering design) of the project will be available in 2011. The project is likely to be started this year," he said.

Asked to comment on the land subsidence around the mudflow site, he said there was nothing to worry about it.

"The land subsidence can be handled if new embankments are not built. The emergence of new mudflow spots and land subsidence results from the construction of new embankments which add to another burden," he said quoting geologists of the Surabaya-based Sepuluh November Institute of Technology (ITS) and Airlangga University (Unair).

To date, there were 180 thousand mudflow spots, including 30 thousand to 50 thousand new ones, he said.

The mudflow first began from a crack near an exploratory gas well owned by PT Lapindo Brantas on May 29, 2006. It soon expanded into a mud lake, swallowing houses, factories and schools, leaving more than 15,000 people homeless.

Related Article:

Indonesia mud volcano still spewing sludge four years later

Ireland Eyes Investment in Indonesian Telecoms

Jakarta Globe, Arti Ekawati, May 28, 2010

Irish investors are targeting Indonesia’s communications and banking technology sectors to capitalize on the country’s rising population and robust economic growth.

Patrick O’Riordan, director of Enterprise Ireland for Indonesia, a trade and technology board, said private business in Indonesia was growing rapidly.

“This will demand an easy and safe banking system and telecommunication access in wide areas,” O’Riordan said on Thursday in Jakarta.

To satisfy this demand, investors from Ireland are expected to enter the banking technology sector and share their expertise, including establishing e-learning for Shariah finance and providing more affordable communication in remote areas.

Irish companies Tango Telecom, Altobridge and Openet are set to start business in Indonesia and cooperate with local mobile-phone operators.

O’Riordan said the telecommunication sector had much potential given the rising population and global free trade.

Since the implementation of the China-Asean Free Trade Agreement in January, Indonesia’s import value on telephones has been increasing. Based on Trade Ministry data, the import value on telephone goods from China in January was $138 million, about a 349 percent increase year-on-year.

“Therefore, finding qualified local partner is very important because of Indonesia’s very complex and huge market in telecommunications,” O’Riordan said.

Mark O’Sullivan, sales director for Altobridge for the Asia-Pacific region, said the company had met with several local mobile-network operators to discuss providing services in remote areas.

Many of Indonesia’s 240 million people live in rural areas spread across the country’s 17,000 islands, which are often underserved by communications networks.

“These are potential customers who can be served by local mobile operators by using Altobridge’s Remote Community solution, since we have satellite technology to provide services for people living in remote areas without any basic communication services,” O’Sullivan said.

To run its business in Indonesia, Altobridge would cooperate with more than one operator, as each operator has its own specific customers. O’Sullivan did not elaborate on how much the company planned to invest in Indonesia.

“We are in the process of looking for local-operator partners,” he said.

Richard O’Brien, Ireland’s ambassador to Singapore, said the Indonesian government needed to minimize obstacles for business development to boost foreign investment.

“Investors need transparency and predictability on tax payment. An attractive and predictable tax regime is urged so that people will know what they have to pay,” O’Brien said.

He added that the government should simplify investment procedures by implementing a one-stop service for investment and business licenses.

Based on Enterprise Ireland’s data, the trade balance between Indonesia and Ireland in 2009 was valued at 1.2 billion euros ($1.49 billion). This consisted of 650 million euros of Indonesian exports and 550 million euros of Indonesia’s imports from Ireland.