Govt to build new cargo port near Jakarta

Antara News, Monday, November 15, 2010 17:34 WIB

Tokyo (ANTARA News) - The Indonesian government`s plan to build a new cargo port near Jakarta was discussed by visiting Vice President Boediono and Japan Bank for International Cooperation (JBIC) President Hirose Watanabe here on Monday.

"The JBIC hailed the government`s plan but it suggested that the port should be equipped with a railway infrastructure to smooth goods transportation," Boediono`s spokesman, Yopie Hidayat, said here on Monday.

He said during the meeting with the vice president, JBIC made a number of proposals, one of which was the building of a railway track for cargo transportation.

"They are interested in constructing a special railway, including a new port because the present port of Tanjung Priok is already overburdened, " he said.

He said it would be difficult to relocate cargo handling activity if the new seaport was not supported by railway track for cargo transportation.

"They proposed that a special railway track be built from industrial zones to the port," the vice presidential spokesman said.

He said that the idea to build a railway was raised during the discussion with the vice president and the JBIC on the Japanese industrial relocation to Indonesia.

In order to support the relocation, a seaport and appropriate transportation infrastructure are needed to smooth the goods movement.

JBIC also proposed the construction of a mini natural gas production center in a gas field which had not-too big reserves because it would not be economical if a a large scale plant was built.

"JBIC proposed the construction of several mini and medium sized gas processing centers. The technology for that is already there and what remains to be done is to conduct a serious study," Hidayat said.

He said that JBIC also proposed an electricity generating project in Central Java. "They want to take part in the power project in Central Java," he said.

M`sian PM donates aid worth Rp1 bln for Merapi evacuees

Antara News, Thursday, November 11, 2010 20:30 WIB

Yogyakarta (ANTARA News) - Malaysian Prime Minister Najib Razak has donated relief aid worth Rp1 billion to evacuees of the Mt Merapi eruptions in Sleman district, Yogykarta province.

Visiting Defense Minister Ahmad Zahid Hamidi symbolically handed the aid consisting of food, clothes and blankets to Yogyakarta Governor Sri Sultan Hamengku Buwono X here on Thursday.

"We bring with us the relief aid from the Malaysian prime minister for Mt Merapi evacuees. The aid is a manifestation of our concern about the disaster befalling residents living around Mt Merapi," Ahmad Zahid Hamidi said.

"We hope the aid will be useful for the evacuees. We are also ready to give another aid that is still needed, of course, with prior consent from the Indonesian government," he said.

Sri Sultan Hamengku Buwono X meanwhile expressed gratitude to the Malaysian prime minister for the relief aid. The aid would certainly be valuable for evacuees sheltered at post commands to meet their needs.

"The aid will later be handed to the Sleman district administration for further distribution to evacuee post commands," he said.

Mt Merapi again spewed hot clouds and lava on Wednesday morning. Ash rained down on Magelang district after the volcano recorded two days of decreasing intensity in its volcanic activities.

Surono, the head of the Volcanology and Disaster Mitigation Office, said on Wednesday although the intensity of Mt Merapi eruptions had started to drop the volcano`s activity remained high and therefore the highest alert status was still in place.

He warned people to stay away from Mt Merapi danger zones as the threat of hot clouds from the volcano had not diminished.

Rain forests still cleared for palm oil

RNW, by Fediya Andina and Ralph Rozema, 10 Nov. 2010 | By RNW News Desk

(photo: Wikimedia Commons/Hayden)

Tropical rain forests in South Asia are still making way for monotonous palm oil plantations. Certification for palm oil should have stopped this happening. It was introduced in 2008, but the results are patchy and the deforestation continues.

Palm oil producers and buyers are being joined by environmental organisations in Indonesia’s capital Jakarta for the annual meeting of the Roundtable on Sustainable Palm Oil (RSPO) on 11 November. A seal of approval logo for labelling products from 2011 onwards will be on display there for the first time.

Switch

RSPO's logo for product packaging

RSPO chairman Jan Kees Vis hopes the logo will let consumers know that the items they are buying are the result of sustainable palm oil production. Mr Vis, who works for Unilever, says sustainable palm oil is growing fast: “Many companies have said that they’ll make the switch in the next five years.”

However, opinions about the value of a RSPO certificate differ. “Many firms keep clearing forests, even though they’ve got a certificate,” says Suzanne Kröger of Greenpeace.

Production chain

Ms Kröger acknowledges that the introduction of certification in 2008 was an important step. Companies such as Unilever and Nestlé have really changed the way they operate. “Nestlé has gone through its whole production chain to check that there’s no deforestation. This makes the company a welcome exception to the rule,” she says. “But a lot of Indonesian and Malaysian producers are resisting. They are the biggest problem. A certificate without hard guarantees is no real solution.”

Congo and Liberia

Indonesia and Malaysia account for 90 percent of the international trade in palm oil. “You’re now seeing Malaysian companies clearing forests in Indonesia and even moving their operations to Congo, Liberia and other African countries. We expect the problem will spread to other countries.”

Indonesia’s palm oil plantations have led to disputes with local farmers. Norman Jiwan from the Sawit Watch group says farmers are being “driven from their smallholdings by bulldozers”, after the land has been sold to palm oil producers.

Small farmers

Certification costs companies several thousand euros per year and the expense can prove a difficulty for small farmers. Mr Vis points that funds have been made available to deal with this problem. “Membership costs 2,000, but small-time producers can join a cooperative or ask for the membership fee to be waived. There are even funds to meet the cost of certification.”

Related Article:

Palm oil meet underscores sustainability pledges

Austria offers 13 economic cooperation projects

Antara News, Wednesday, November 10, 2010 20:53 WIB

Jakarta (ANTARA News) - Austria has offered 13 economic cooperation projects covering infrastructure development in various fields to Indonesia.

Indonesia`s Coordinating Minister for Economic Affairs Hatta Radjasa said here on Tuesday "we have agreed to increase cooperation in the economic field as the volume of trade between the two countries has not yet reflected its potentials."

He made the statement in a press conference after receiving Austria`s economic minister Reinhold Mitterlehner and delegation at his office.

Hatta said although the trade balance and Austrian investment in the country was not too big the two countries had agreed to encourage businessmen of the two countries to increase cooperation in various fields.

"We will increase the bilateral cooperation not only in the field of trade but also investment such as in the renewable energy technology, health service, transportation and other infrastructure that we would be badly in need in the future," he said.

He said he hoped through Austria which has a strategic position in the Central Europe Indonesia could also expand its market in Europe.

"With Austria`s strategic position we hope we can promote cooperation to a higher level. Austria meanwhile could develop biofuel energy with the raw materials coming from Indonesia or set up a plant here," he said.

Hatta said the 13 cooperation projects had been included in the government`s blue book and were still being further processed including carbon emission reduction and transportation projects.

"We have received an offer of a transportation system such as cable car which is like a light train is cheap and potential. In big cities it is effective and can serve as a feeding car to serve an integrated transportation system," he said.

Austria`s economic minister Reinhold Mitterlehner meanwhile said he hoped his visit with a 50-member business delegation would increase bilateral economic relations and cooperation between the two countries including in renewable energy development.

"The two countries have a common goal of reducing carbon emissions and therefore we have offered infrastructure projects and we are hoping for a concrete result from the cooperation," he said.

He said Indonesia and Austria could also use the cooperation opportunity for opening trade representatives in Austria and for Austrian private companies to participate in the financing of infrastructure projects in Indonesia through public-private partnership.

Among the cooperation projects that Austria had presented include the development of a hospital in cooperation between AME International GmbH and the ministry of defense, provision of hydro power equipment between Andritz Hydro GmbH and PT PLN and the ministry of public works, provision of high-tech solutions in various fields, development of powertrain system between AVL List GmbH and the ministry of education, development and provision of machinery and system for railway maintenance between Plasser&Theurer Export von Bahnbaumshinen GmbH and the Directorate General of Railway of the ministry of transportation.

Other projects include provision of concepts of development and operations in the health service between VAMED Engineering GmbH & Co. KG with the ministry of defense, transportation system between VAE GmbH and the Directorate General of Railway.

It has offered projects in the production of railway lines for electricity train service between Doppelmayr Seilbahnen GmbH and PT Saratoga Infrastructure, provision of communication and information system in the fields of air transportation and public safety between Requentis AG and the ministry of transportation, the ministry of home affairs and the ministry of fisheries and marine resources.

Austria has also offered cooperation projects in tsunami-related business consultancy between ICR GmbH and the ministry of communication and information, for the provision of railway technology equipment between LISINGER Maschinenbau GmbH and the Directorate General of Railway , and for the provision of information security system between Mils Electonic GmbH & Co KG with the ministry of defense and the ministry of domestic affairs, and for the provision for a system of waste water processing between Ovivo Austria GmbH and the ministry of defense.

Norway gives $1m to tsunami and Merapi victims

The Jakarta Post, Jakarta | Wed, 11/10/2010 8:34 PM

Norway announced US$1 million of assistance recently for the emergency relief efforts in disaster-affected areas.

“In this hard time of challenges and suffering, the Norwegian government and people want to reach out to a good close friend and demonstrate our strong solidarity,” Royal Norwegian Ambassador to Indonesia Ambassador Eivind S. Homme told The Jakarta Post on Wednesday.

Norwegian Foreign Minister Jonas Gahr Stoere, who visited Indonesia recently, said that the tsunami that struck Mentawai Islands, West Sumatra, on Oct. 25 and the Mount Merapi eruptions had led to a great need for humanitarian assistance.

“Norway is therefore contributing $1million, which is being channeled through the Norwegian Red Cross to its Indonesian sister organization,” said Stoere in Jakarta on Monday.

He was referring to the Indonesian Red Cross.

Homme said the Norwegian funds would be used to support the emergency relief efforts and increase the capability of the Indonesian Red Cross to handle both disasters.

US wants to be RI's No. 1 trade partner, Obama says

Erwida Maulia, The Jakarta Post, Jakarta | Wed, 11/10/2010 2:19 AM

US President Barack Obama says he’s not happy that the US is Indonesia's third largest trading and investment partner.

"I've informed [President Susilo Bambang Yudhoyono] that we don't like to be ‘No. 3’. We want to be No. 1," Obama told a press conference after a meeting with Yudhoyono at the State Palace.

After Obama twice cancelled visits to Jakarta, the two leaders launched a comprehensive partnership on Tuesday.

The agreement covers cooperation in trade and investment, education, energy, climate change and environment, security, democracy and civil society.

Related Article:

US investment in RI soars to $871 million until Q3

Canada’s RIM Sets Up Shop in Indonesia

Jakarta Globe, Shirley Christie | November 09, 2010

Jakarta. Research in Motion announced on Tuesday that it was establishing an Indonesian subsidiary, a move aimed at providing marketing support for its wildly popular BlackBerry smartphones and to comply with local law, following the establishment of a similar unit in Singapore four years ago.

A woman using a Blackberry in front of Blackberry
banner  at a shopping mall in Jakarta, in this file photo.
BlackBerry's parent company Research In Motion is
setting up an  Indonesian subsidiary.
(JG Photo/Jurnasyanto Sukarno)

“I’m here because Indonesia matters a lot to Canada as a trading partner in the G-20,’’ Canadian Finance Minister Jim Flaherty said in Jakarta on Tuesday at a ceremony to unveil Research In Motion Indonesia.

“RIM is a very important Canadian-based company, and has now become a significant player here in Indonesia.”

Gregory Wade, RIM’s managing director for Southeast Asia, said the establishment of the local unit was a milestone and a testament to its long-term commitment and investment in Indonesia.

“Thanks for the support and approval of the [Investment Coordinating Board] to incorporate RIM Indonesia,” he said.

The establishment of RIM’s marketing office in Southeast Asia’s largest economy comes after government officials expressed concerns over the company’s compliance with Indonesia’s Information and Electronic Transaction Law (ITE).

Tifatul Sembiring, communication and information minister, said in September that the Canadian company should establish a database center and server in Indonesia to meet legal requirements.

Tifatul said the center would allow authorities to conduct lawful interceptions of e-mail and other messages, and the leasing of bandwidth for the servers would contribute revenue.

Other nations, such as India, have threatened to discontinue BlackBerry service because of security concerns.

The ITE also stipulates all phone producers must open an after-sales office if they want to sell products in Indonesia, a condition RIM met in August.

There are 1.5 million BlackBerry users in Indonesia, around 7.1 percent of the 21 million global users of the smartphones, said Mike Kirkup, RIM director for developer relations.

RIM, based in Waterloo, Ontario, operates offices in North America, Europe, Latin America and Asia-Pacific.

RIM Indonesia has three domestic distributors for its handsets: Teletama Artha Mandiri, Comtech Cellular and Selular Media Infotama.

Daniel Tumiwa, head of business development at 7 Langit, a BlackBerry alliance member, praised the opening of the unit, saying the time was right because other players, such as Apple, were entering Indonesia’s lucrative market.

US investment in RI soars to $871 million until Q3

Antara News, Tuesday, November 9, 2010 22:41 WIB | Economic & Business

Jakarta (ANTARA News) - US investment in Indonesia grew rapidly to US$871 million until the third quarter of this year, a minister said.

"Until the third quarter of 2010 (US investment) reached US$871 million, meaning that US investment outside the oil and gas sector grew rapidly," Coordinating Minister for Economic Affairs Hatta Rajasa said here on Tuesday.

The US investment in Indonesia stood at US$157 million in 2008, rose to US$171 million in 2009 and further moved up to US$871 in 2010 up to September, he said.

He expressed hope that US investors would invest in the country`s renewable energy. "We want a transfer of technology in the field of renewable energy. We hope there will be US investment in the management of renewable energy," he said.

He said Indonesia must be able to take advantage of President Barack Obama`s visit in Indonesia to boost two-way trade. Obama arrived here on Tuesday for a two-day visit.

The US was one of the main markets for Indonesian products and the two countries still had a plenty of chance to increase their trade, he said.

"The US ranks second in terms of our foreign trade volume and export destinations. We always enjoy a surplus in our trade with the US. This means that the US is a huge market for export commodities," he said.

He expressed hope that trade between the two nations would return to the pre-crisis level of US$21 billion in the years ahead.

"In 2009 the bilateral trade fell slightly. In 2010 it shows an upward trend and will hopefully return to the level of US$21 billion such as in 2008 when Indonesia recorded a surplus of more than US$5 billion," he said.

He declined to reveal the agenda of the meeting between the two countries during Obama`s visit in Indonesia to enhance bilateral trade.

But he added that the US always saw Indonesia as its strategic partner.

Related Article:

News Focus: Obama`s visit to boost RI, US trade

RI, Netherlands extend MoU on diplomats training

Antara News, Tuesday, November 9, 2010 17:09 WIB

Jakarta (ANTARA News) - Indonesia and the Netherlands have extended until 2014 their cooperation agreement in the educational sector specifically in the training of Indonesian diplomats and building the capacity of the Indonesian Foreign Ministry`s Center of Education and Training (CET).

The extension was provided for in a Memorandum of Understanding (MoU) signed here on Monday by the secretary general of Indonesia`s Foreign Affairs Ministry, Budi Bowoleksono, and Dutch Ambassador to Indonesia Tjeerd de Zwaan.

Cooperation in diplomatic training between Indonesia and the Netherlands has been going on since February 2004 based on an MoU on the Training of Indonesian Diplomats and Capacity Building of the CET. During the implementation of the MoU, the Clingendael Institute of International Relations in The Hague was appointed as the host of the diplomat training.

"So far 349 Indonesian diplomats have had training at the Clingendael Institute. I expect this cooperation to continue in years to come," Budibowo Leksono said.

Meanwhile, Dutch Ambassador Tjeerd de Zwaan expressed appreciation for the extension of the Indonesia-Netherlands MoU on diplomat training saying that it reflected both countries` wish to cooperate even more closely in the future.

Apart from the educational sector, the ambassador added, his country was very keen to improve bilateral relations with Indonesia in other sectors such as energy, business and people-to-people contacts.

Monday`s MoU signing ceremony was also attended by Indonesian Ambassador to the Netherlands Junus Effendy Habibie and director of the Clingendael Institute Ron Ton.

China to Plow $6.6b Into Indonesian Infrastructure

Jakarta Globe, Camelia Pasandaran | November 08, 2010

Jakarta. A high-level Chinese trade and investment delegation wrapped up a four-day visit to Indonesia on Monday by signing an agreement to invest $6.6 billion in various Indonesian infrastructure and development projects.

In October, Vice President Boediono, seen in this file
photo, visited Beijing to meet with Premier Wen Jiabao|
and others to discuss investment. These negotiations
appear to have paid off as the Chinese government has
pledged $6.6 billion dollars worth of infrastructure
investment. (SP Photo)

Coming on the eve of US President Barack Obama’s state visit, the news emphasized growing ties between Beijing and Jakarka in recent years.

The timing seemed an attempt to upstage the American president.

Privately, some US business analysts have complained that the high-profile Obama visit is long on politics and short on economic initiatives at a time when American companies seem to be at a regulatory disadvantage in Indonesia over issues ranging from logistics services to shipping and pharmaceuticals.

Monday’s announcement also follows long-standing lobbying efforts by Indonesian officials to secure infrastructure funding from various partners.

In October, officials announced a commitment by Japan to invest more than $50 billion in infrastructure here over the next 15 years.

President Susilo Bambang Yudhoyono has pledged to spend $150 billion over the next five years to boost infrastructure in areas such as seaports, airports, water and roads, to boost growth to reach his pledge of 7 percent per year by the end of 2014, at the end of his second-five year term.

“The $6.6 billion will be given over a certain period of time,” Zhang Zijun, China’s deputy foreign affairs minister, said at the vice presidential palace.

“Part of the $6.6 billion is for Chinese banks to offer financial support for infrastructure projects in Indonesia.”

Zhang said further discussions would be held with the Indonesian government through the Ministry of Trade to discuss project implementation.

The infrastructure investment pledge, Zhang noted, came as a result of numerous discussions held between Indonesian and Chinese leaders.

In October, Vice President Boediono visited Beijing to meet with Premier Wen Jiabao and others to discuss investment, with both countries pledging a significant increase in deals.

“We have long experience in infrastructure development, and now we have the budget as well as the technology,” Zhang said.

“The investment will play an important role in Indonesia and will strengthen cooperation between China and Indonesia.”

Some of the projects that have been agreed between the two nations are for coal mine development in Kalimantan, electric power generation in Central Java, palm oil plantations and a cement factory.

Zhang said Indonesia has enormous potential and that China, given its massive population and emerging market, is a great customer for Indonesia. “We hope that businessmen from both nations will intensify their cooperation,” Zhang said.

“We hope to see further developments in economy and trade to support the economies of both nations.”

This year marks the 60th anniversary of diplomatic relations between Indonesia and China, although relations were suspended by Jakarta for ideological reasons for more than 20 years during the Suharto era. In 2005, both nations signed a strategic partnership.

Indonesia also recently asked China for permission to open a Bank Mandiri branch in Shanghai.

Zhang announced on Monday that the government had agreed to give the permit.

“We hope it will help Indonesian companies in China,” Zhang said.

In addition, Wu Bangguo, the head of China’s National People’s Congress, announced a 10 million yuan ($1.5 million) donation for disaster relief, in addition to Chinese government donations of medical assistance, medicine and food.

US, RI intensify volcanic talks ahead of Obama's arrival

Erwida Maulia, The Jakarta Post, Jakarta | Mon, 11/08/2010

The United States and Indonesia are intensifying talks on volcanology ahead of US President Barack Obama's planned arrival in Jakarta on Tuesday.

Indonesian Ambassador to the US, Dino Patti Djalal, told a press conference in Jakarta on Monday that the US had expressed its intention of boosting cooperation with Indonesia on the issue, including providing assistance, following Mount Merapi's multiple eruptions, which have continued for two weeks now and have now killed more than 130 people.

Dino said the US would also soon send a team of volcanologists to Indonesia to discuss with local volcanologists the way to better predict future volcanic eruptions.

"Over the past 24 hours, we've been intensively communicating with the US on cooperation and support on volcanic issues in regards to the recent Merapi calamities," Dino said at the Presidential Office in Jakarta.

He added that the partnership would be a follow up of the already established cooperation between Indonesian volcanologists and the Hawaii-based US Geological Survey, and would also include Japanese volcanologists.

"So this will be a trilateral partnership between Indonesia, the US and Japan," Dino said.

Volcano a no-smoking area

smh.com.au, Will Carless, November 5, 2010 - 5:29AM

Nobody is allowed to smoke in the Sampoerna Rescue camp.

The cluster of leaky, ash-covered canvas tents that has been set up in a muddy field here, on the slopes of erupting Mount Merapi in Central Java, has been designated a smoke-free zone by volunteers and employees of Sampoerna, one of Indonesia's largest tobacco companies.

The camp is one of the only places here in Java, where almost two-thirds of adult males are addicted to cigarettes, and where smoking is tolerated everywhere from airport lounges to children's play parks, that you can't smoke.

The company, which has been owned by Philip Morris since 2005, paid for the camp, the flashy four-wheel drive vehicles parked in front of it, and the cluster of eager staffers wearing natty red and black uniforms covered with company logos.

The team is one of several emergency response efforts organised by large Indonesian corporations in response to the devastating series of eruptions that have so far killed 44 people and displaced more than 77,000 rural residents in the last week.

On Thursday, as the volcano unleashed its biggest explosion yet, killing five more people, the mountainside crawled with expensive ambulances, water purification trucks and four-wheel-drive vehicles, all provided by the companies.

Businesses as diverse as Jakarta-based conglomerate Artha Graha, telecommunications giant Telkomsel and state oil company Pertamina provided the vehicles, which, like the uniforms of the squads of employees who operate them, are typically emblazoned with corporate logos.

Known here as "corporate social responsibility" efforts, the disaster relief teams aim to augment efforts by a stretched Indonesian government to house, clothe and feed evacuees from the volcano.

Representatives of the companies working on the mountain said their efforts are entirely altruistic, and baulked at any suggestion that the aid teams double as a marketing campaign for the companies.

But local residents and evacuees were not so sure.

"Why can't they just do the good stuff, but without the advertising?" asked 18-year-old Anin, who like many Indonesians only uses one name and who was volunteering at an evacuation camp opposite the Sampoerna camp in her home village of Harjobinangung.

"Why can't they just use plain white vehicles or something?"

Earlier this week, police and military officers tore down hundreds of banners and advertisements for political parties that had quickly sprung up on main streets in the evacuation zone.

The removal of the advertisements, which had rankled local residents and evacuees, came after a local official said they had been erected without permits.

Aprilianto, a 31-year-old evacuee from the slopes north of Harjobinagung, said the government should apply the same rules to private companies that have erected banners and tents displaying their corporate logos.

"The companies are taking advantage of the situation, so why should they be treated differently?" Aprilianto said.

Inside one of the Sampoerna tents, Herman Sudjarwo, a general practitioner who usually works in a private hospital in the city of Surabaya in East Java, attended to evacuees in a makeshift clinic.

He said most of the 90 to 100 patients he sees a day are suffering from breathing difficulties attributable to the high levels of volcanic ash and dust that have rained down from the volcano's crater.

Asked whether he sees any irony in a cigarette company providing free medical checkups, Sudjarwo giggled.

"This is to balance it out," he said.

Arief Triastika, a national coordinator for Sampoerna's community development efforts, who has been managing the camp on Merapi, said his company is only interested in providing assistance to people affected by the volcano and is not using the disaster as a promotional opportunity.

Sampoerna maintains three disaster management teams on the island of Java and has dispatched crews of volunteers to disasters all over Indonesia since 2002, Triastika said.

The company has helped provide food, medical equipment and logistical aid to victims of the 2004 Indian Ocean earthquake and tsunami, the 2006 tsunami in West Java, earthquakes in Padang and Yogyakarta and floods across Java in 2010, he said.

Asked if skeptical evacuees have criticised his efforts, Triastika shook his head vigorously.

"At the moment we don't have that criticism. And we keep giving the best we can do for the community," he said.

When employees and volunteers want to smoke at the Sampoerna Rescue camp, they have to leave the tents, even if it is pouring with rain, Triastika said.

The camp is a de facto medical clinic, he said, and therefore must be kept sterile.

Locals eyeing the tents and the Sampoerna banners from an evacuation camp across the street had other ideas about the Sampoerna effort, however.

Asked if he had ever thought to approach the camp volunteers for free cigarettes (the company does not hand out cigarettes), Aprilianto's eyes lit up.

"No," he said as he stubbed out a rival brand's clove cigarette. "Do they do that?"

Norway to give $1.65m to boost women’s role in politics

The Jakarta Post, Jakarta | Thu, 11/04/2010 5:30 PM | World

In an effort to strengthen the status of Indonesian women in politics and enhance their role in democratic governance, the Royal Norwegian Embassy in Jakarta on Thursday signed a cooperation agreement with The Asia Foundation in Indonesia.

“Norway was happy to continue its partnership with Asia Foundation in strengthening the voices and involvement of Indonesian women in politics ,” Norwegian Ambassador to Indonesia Eivind S. Homme said in a press release sent to The Jakarta Post on Thursday.

“Much has been achieved, and we want to be there to offer further support in this progress with women actively taking part in shaping the future of their society and nation”.

Norway will provide US$1.65 million to the activities organized under this cooperation agreement. The agreement was signed by Ambassador Homme and The Asia Foundation representative for Indonesia Robin Bush at the Norwegian Embassy in Jakarta on Thursday.

The three-year program, according to the press release, will focus on achieving increased capacity of women lawmakers at national level and in Aceh, East Java and South Sulawesi provinces. -- JP

Three New Fertilizer Plants To Cover Domestic Demand

Jakarta Globe, Faisal Maliki Baskoro | November 03, 2010

Jakarta. State-owned fertilizer companies Pupuk Sriwijaya (Pusri) and Pupuk Kaltim (PKT) signed an agreement today to enter into a joint venture with Jordan Phosphate Mines to build three fertilizer factories in Indonesia in a deal worth $900 million.

Arifin Tasrif, president director of state-owned fertilizer company Petrokimia Gresik and chairman of the Indonesian Fertilizer Producers Association (APPI) said the joint venture would fill a gap in a domestic fertilizer market that was expected to demand eight million metric tons per year by 2025.

He said the three factories would each be capable of producing one million metric tons of NPK (nitrogen, phosphorous and potassium) fertilizer each year.

“Once these factories start operating in 2015 it will add three million tons to Pusri’s current capacity of 2.2 million tons, matching fertilizer demand in that year,” Arifin said.

“These factories will also meet the demands of 40 million farmers in Indonesia.”

He said the first factory, planned for Gresik, East Java, was expected to be operational in 30 months, while the other two, to be located in Tanjung Siapi-api, South Sumatra, and Bontang in East Kalimantan, were expected to be completed by 2015.

The Pusri-PKT partnership and Jordan Phosphate will each have a 50 percent stake in the company.

Thirty percent of the venture’s financing would come out of the companies’ equity and the rest from bank loans, Arifin said.

The deal is also a positive development for the fertilizer industry as a whole, which needs $6.2 billion from the private sector to upgrade aging factories, he said.

Mustafa Abubakar, the state enterprises minister, said that with the joint venture, Pusri could become the world’s biggest fertilizer company by 2015.

“We will export some to the Philippines, Malaysia and Vietnam.”

Walid Kurdi, chairman of Jordan Phosphates, said this was the first time his company had entered into a joint venture with a company outside of Jordan.

“We’re comfortable investing here. We trust investing here more than anywhere else as it offers facilities for investors’ protection and it is a potential market,” he said.

Petrokimia Gresik signed a joint venture agreement in January with Jordan Phosphate to build a $200 million fertilizer plant in East Java.

The factory is expected to have a production capacity of 200,000 tons annually.

Jordan Phosphate operates three mines in Jordan, where the government owns 26 percent of the company.

Kamil Holding, an investment company owned by the Brunei Sultanate, has a 37 percent stake.

Obama Set to Reveal $700m Indonesian Forest Funding

Jakarta Globe, Fidelis E. Satriastanti & Reuters | November 03, 2010

Jakarta. US President Barack Obama is expected to use his brief visit to Indonesia next week to announce hundreds of millions of dollars in funding to help the nation tackle climate change, a senior official said on Wednesday.

US President Barack Obama, seen in this file photo,
is expected to make an announcement vowing
hundreds of millions of dollars to help Indonesia tackle
climate change when he visits the country.
(AP Photo/Alex Brandon)

Obama, who is scheduled to visit the country on November 9, is likely to announce $700 million for the Millennium Challenge Corporation, a development fund formed under the Bush administration.

The foreign aid fund, which provides poorer countries with large grants to fund domestic poverty reduction through sustainable economic growth, can also include funding for climate change and forest conservation.

Indonesia’s forests and seas are widely expected to be at the heart of coming efforts to boost ties between Washington and Jakarta and to step up the fight against climate change, officials and other sources said.

Agus Purnomo, a presidential staffer focusing on climate change, said that if Obama did publicly announce the funding commitment, it would mark the country’s first concrete action to contribute to Indonesia’s battle against climate change and would affirm Washington’s seriousness in contributing to the issue.

“The US and Norway had each made a pledge for $1 billion dollars in fast-track funding committed in the Copenhagen Accord, but for a year the US side has not acted. No numbers [for climate change funding] at all,” he said.

Indonesia has some of the world’s most complex and diverse forests but also one of the highest deforestation rates.

Saving them from illegal logging and unsustainable clearing for agriculture and mining could help the country meet its goals to cut greenhouse emissions — the third-highest globally according to the World Bank, taking into account deforestation and land use.

It would also help the United States in its goal to fight climate change, and help Indonesia become a source of tradeable forest carbon offsets that would help polluting US industries meet future targets to cut emissions.

Although Agus said he was not sure about the funds that would be committed, he estimated that the country could get $200 million from the MCC and maybe another $200 million from another, unspecified fund.

Meanwhile, Teguh Surya, head of advocacy at the Indonesian Forum for the Environment (Walhi), said the funding commitment should wait until Indonesia was ready to manage the money.

“Obama’s good intention should be appreciated; however, we still don’t have any clear mechanism to manage this money. It would be open to misuse,” Teguh said.

He added that what the country needed most was funding for climate change adaptations — such as weather early warning systems for fishermen — rather than mitigation efforts.

Furthermore, he said, Yudhoyono should push the United States for radical emissions reductions of its own, to show that US funding was not simply a way of preparing Indonesia to enter the carbon market.

The visit could also reveal details about implementing a four-year program worth up to $40 million to fight deforestation, reduce the loss of biodiversity and improve land management.

That scheme was announced earlier this year.

Details may also emerge of a further $20 million for marine conservation, a source said, while steps to promote clean energy development could also be announced.

The United States has an interest in protecting Indonesia’s forests not just because of the valuable role they play sucking greenhouse gases out of the air, but also as a key part of a potential future forest offsets trading industry, observers say.

“They are trying to find a way to protect their future offsets but they have also seen how important Indonesian forests are for the global climate crisis,” said Jakarta-based Greenpeace forest campaigner Bustar Maitar.

Japan Offers “Green Funding” Worth US$50 Million

Tempo Interactive, Wednesday, 03 November, 2010 | 17:50 WIB

TEMPO Interactive, Jakarta:The Japan Bank for International Cooperation (JBIC) is offering “green funding” for environmentally-friendly private-sector projects. JBIC will provide a total of US$50 million.

“We are still discussing the details with the Indonesian government,” JBIC Executive Director Fumio Hoshi told Tempo in Jakarta yesterday. Hoshi said JBIC is offering the program to many countries, including Indonesia.

The JBIC fund is aimed at developing green economic growth. As such, there are some requirements to obtain the funding. The green funding is different from that of REDD or the Oslo Moratorium, which is focused on carbon trading, although they share the same vision.

Japan is ready to disburse US$14 billion for the project worldwide. Japan will allocate the funds within the next three years. “Some projects began this year,” Hoshi said.

Arianto Patunru, the University of Indonesia’s Economic and Community Research Institute (LPEM) director, said JBIC will provide more funding for projects which focus on sustainable, low carbon emissions.

Green growth can be seen from the wide opportunities available for alternative energy projects, as well as in the lowering of energy subsidies and dependence on fossil fuel.

Senior economist and environmental activist Emil Salim said Indonesia has to face three challenges within the next few years and they can all be handled with green growth, namely climate change, biodiversity erosion and the achievement of the Millennium Development Goals.

ANTON WILLIAM

PLN provides solar power generators for Mentawai

Antara News, Wednesday, November 3, 2010 21:11 WIB

Padang, W Sumatra (ANTARA News) - State-owned power utility company PLN provided 60 sets of solar power generators (PLTS) for the victims of earthquake and its subsequent tsunami disasters in Mentawai Islands, West Sumatra, a PLN official said.

"The 60 sets of PLTS will be sent to the evacuation centers to provide the victims with lighting," PLN Operation Director for Western Indonesia Harry Jaya Pahlawan said here on Wednesday.

He said that one set of PLTS consisted of three 100 watt lamps and one solar panel. "Each PLTS is able to turn on a 300 watt lamp and could last for 6 to 8 hours," he said.

Harry said that the PLTS were badly needed by the disaster`s survivors which were not staying at refugee camps. After all the power generators (PLTG) network in Sikakap subdistrict, Mentawai district, had not yet functioned.

On October 25, 2010, a magnitude-7.2 earthquake and a subsequent tsunami hit the Mentawai Islands district, West Sumatra, killing at least 408 people and caused no less than 303 others to go missing.

A total of 270 people are seriously injured and 142 lightly injured in the disaster. The 7.2 magnitude temblor and the tsunami devastated 517 buildings and cast minor damage to 204 buildings.

A total of 22,595 residents of the total 26,004 dwelling in Bumi Sikkerei were reported to be evacuated in safe places.

Govt to make reconstruction blueprints for disaster-hit regions

Antara News, Tuesday, November 2, 2010

Jakarta (ANTARA News) - The government will draw up blueprints for the reconstruction of the disaster-hit regions of Wasior, Mount Merapi and Mentawai islands, a coordinating minister has said.

"We anticipate that funding for the reconstruction of the areas hit by natural disasters will come from various sources, both internal and from foreign assistance," Coordinating Minister for People`s Welfare Agung Laksono said, here on Tuesday.

The minister said the government would prepare the blueprints for the reconstruction works in those areas very soon, something that he expects the public will support because the project will not be workable without the expected support and assistance.

He revealed that the Indonesia government had been notified of expression for support from friendly countries to help with the reconstruction works in the disaster-hit regions. "We appreciate the support and pledges of assistance from those countries," Agung said.

Agung also said the government would also like to say thanks for the assistance and contributions given by various elements of Indonesian society to the disaster mitigation efforts in the disaster-hit regions.

Wasior in West Papua was devastated by a giant flash flood that killed more than 160 people on October 4, 2010.

On October 25, a tsunami triggered by a magnitude-7.7 earthquake engulfed the Mentawai islands off the coast of West Sumatra killing 430 people and making some 15,000 people homeless.

Mount Merapi in Magelang district, Central Java, erupted five times since October 26, spewing hot clouds 1.5 km into the air and sending lava down its many slopes. The lives of 39 people were lost, and the homes of about 70,000 others were destroyed.

Governor Orders Construction of Bamboo Shacks for Conjugal Visits for Volcano Victims

Jakarta Globe | November 02, 2010

Jakarta. Yogyakarta Governor Sri Sultan Hamengkubuwono X has ordered the construction of bamboo shelters for families displaced by the Merapi volcano disaster to allow for privacy, including for married couples who wish to engage in sexual activity.

Merapi evacuees having a meal at a shelter.
Yogyakarta Governor Sri Sultan Hamengkubuwono X
planned to build one shelter for one refugee family
to provide privacy. (Antara Photo)

“[On Monday] we received an instruction from the governor to build each family a shelter,” Sleman district deputy head deputy Yuni Rahayu told Detik.com. “The special shelter is necessary so children can study and husbands and wives can conduct their sexual activities in private.”

With predictions the eruptions could continue for months and that the rebuilding process for those who lost homes even longer, Yuni said the shelters would need to accommodate 13,000 refugees.

He said the three x four meter structures would be manufactured from bamboo.

All natural: The Green School in Bali features bamboo construction engineered into a more modern look. JP/ Zul Trio Anggono

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