Indonesian students, scholars sent to US under Fulbright program

Antara News, Thu, May 19 2011

Jakarta (ANTARA News) - Ambassador Scot Marciel, Deputy Minister of Education Fasli Jalal and former Indonesian Ambassador to the US Dorojatun Kuntoro Jakti opened the Annual American Indonesian Exchange Foundation (AMINEF) Fulbright Pre-Departure Orientation here last Friday.

This year`s pre-departure orientation and networking event brought together the largest group of Fulbright programs in AMINEF`s 19 year history and Fulbright`s 59 year history in Indonesia, according to the US Embassy here in its official website on Thursday.

The conference which included 204 Indonesian Fulbright and other related programs candidates and 20 American grantees is designed to establish fundamental understanding of the vision and mission of the Fulbright program among the Indonesian candidates and American grantees.

It is also designed to prepare the Indonesian candidates for their upcoming academic programs in the United States.

While this year is historic in numbers, the U.S. Embassy is looking forward to celebrating AMIEF`s 20 year anniversary next year and the 60th anniversary of Fulbright in Indonesia.

Editor: Ella Syafputri

Liverpool opens Indonesian academy

The Jakarta Post, Jakarta | Sat, 05/14/2011

Liverpool legend Phil Neal officiated the opening of the Liverpool Football Club (LFC) Academy Indonesia in Jakarta on Saturday, the first of its kind in Asia.

The opening ceremony was held at Sumantri Sports Stadium in Kuningan, South Jakarta. As part of the event, Neal gave a coaching clinic to a number of Indonesian kids aged between 7 and 11 years old.

Students of the LFC Academy Indonesian will be automatically registered as members of the International Junior LFC Academy.

Another British soccer club, Arsenal, and Spain’s Real Madrid previously opened similar schools in Indonesia, tribunnews.com reported.

Govt To Offer 7,000 Jobs At Int`l Marine, Fisheries Fair

Antara News, Otniel Tamindael, Sat, May 14 2011

Jakarta,  (ANTARA News) - The government will offer at least 7,000 job opportunities in the marine and fishery sector to job seekers at an upcoming International Job Fair on Marine and Fisheries (I`JO F.M 2011).

As part part of the government`s effort to reduce unemployment and to improve the people`s welfare, the I`JO F.M 2011 will be held in Jakarta May 23-25, 2011 to net as many workers as possible.

Maritime Affairs and Fisheries Minister Fadel Muhammad said here early this week that many countries had expressed their interest in recruiting Indonesian sailors in overseas marine and fishery related industries.

"Following increasing demand for Indonesian sailors from many countries, the Maritime Affairs and Fisheries Ministry (KKP) will make a new breakthrough to accommodate the request," Fadel said on Wednesday.

The maritime affairs and fisheries minister admitted that during his visits to Europe, many shipping companies had told him that they needed a lot of Indonesian manpower for their cruise ships.

Fadel said many countries in Europe needed more Indonesian sailors because their own people were no longer interested in seafaring jobs.

According to him, there were a lot of job opportunities abroad for Indonesian sailors and therefore his office would make a breakthrough by creating a cross-ministerial program in the form of International Job Fair on Marine and Fisheries (I`JO F.M 2011).

The minister explained that his office in cooperation with Manpower and Transmigration Ministry, National Education Ministry, and Cooperatives and Small and Medium Enterprises Ministry would organize the I`JO F.M 2011.

Meanwhile, head of Maritime Affairs and Fisheries Ministry`s Department of Human Resources Development, Syarief Widjaya, said the I`JO F.M 2011 would be the biggest event this year.

Syarif said the event would be participated in by at least 50 leading national and international companies in maritime and fisheries fields, such as fishing companies, fish farming companies, marine and fisheries product processing companies, labor recruitment agencies and other companies.

The International Job Fair on Marine and Fisheries will be a perfect event for job seekers, marine and fisheries related education and training promotion, consultation, job applicants interview, direct recruitment for job applicants, and for opportunity to go abroad.

Syarif also explained that the national and international leading companies in the I`JO F.M 2011 would provide the Indonesian job seekers with around 7,000 job opportunities.

He said various job opportunities were among others in the fields of fishing, aquaculture, and fishery products processing and marketing would be offered to around 30,000 people who were expected visit the international job fair.

Other sectors to be offered to the job seekers in the fair are coastal regions and small islands management especially the area management and conservation of marine tourism, captains, the crews, vessel mechanics, and chefs, fish packing or canning officers, and fisheries shipping transportation services.

In a bid to arrange and manage the increasing overseas demand for marine and fisheries related manpower from Indonesia, Syarif said the government would soon build a marine manpower office.

"The joint marine manpower office is supported by Maritime Affairs and Fisheries Ministry, Manpower and Transmigration Ministry, National Education Ministry, and Transportation Ministry," Syarief Widjaya said.

He said the joint marine manpower office, expected to permanently organize the International Job Fair on Marine and Fisheries every year, would be declared at the closure of the I`JO F.M 2011.

Besides, he added that the office of the cross-ministerial cooperation would also provide Indonesian job seekers in marine and fishery field with information about job opportunities.

He also said a lot of Indonesian sailors were working abroad at present in the fields of shipping sector, fishery management industries, and aquaculture.

Therefore Indonesian Seamen Association (KPI) Secretary Sonny Pattiselano said the government should consider the protection and safety of Indonesian sailors who were working abroad.

Sonny also highlighted the gap between domestic legislation and international policy, and said that there should be well integrated consolidation rules.

"The involvement of labor union in industrial relations in the maritime and fisheries sector should also be taken into account," Sonny said.

According to maritime affairs minister Fadel Muhammad, around 12,000 Indonesian men are currently working on board various ocean liners across international waters.

"There are around 12,000 Indonesian workers on board both domestic and foreign ships which sail across international waters at present," Fadel said in an economic-related dialog on April 12, 2011.

Fadel admitted that he obtained the data about the number after a hijacking incident of an Indonesian ship with 20 crews by Somali pirates in March.

The minister explained that thousands of Indonesian sailors spread in various regions in Asia and Europe.

According to the minister, there were around 2,000 Indonesian sailors in Spain, 600 in Taiwan, and 400 in Thailand, and 3,000 in Japan.

Therefore he said the sailors had been asked to form an association amongst Indonesian seamen.

"I have asked them to form the association and to remain getting in touch with with Indonesian embassies abroad," Fadel said.

Meanwhile, data from Transportation Ministry in 2010 indicated that the Indonesian sailors working abroad could generate foreign exchange to about one billion dollars per year. 

Experts advise against building nuke power plants in RI

Antara News, Thu, May 12 2011

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Jakarta (ANTARA News) - A number of experts at a seminar on the welfare and safety aspects of nuclear power plants have advised against building such facilities in Indonesia.

Dr Ing Negah Sudja, former secretary of the Commission to Prepare the Building of Nuclear Power Plants, said the cost of constructing such a facility in Indonesia would be astronomical and not be economically viable.

Speaking at the seminar organized by the Center for Strategic and International Studies (CSIS) here Thursday, he said although fueling a nuclear power plant would be less costly than other types of power generating facilities, "there will be other, very huge expenditures."

Among the other expenditures was the construction cost which would be 3 to 5 times the cost of a coal-fired thermal power plant because of the need for multi-layer safety precautions.

Citing examples, Negah said a contract to build four nuclear power plants with a capacity of 1,400 MW each between the United Arab Emirates and Korea had cost 20.4 billion US dollars. Another contract between Turkey and Russia for the construction of four units with a capacity of 1,200 MW each required 20 billion US dollars in funding.

In addition, the nuclear plants owner had to pay enormous sums for insurance and the safe storage of nuclear waste materials, Negah said.

Prof Rinaldy Dalimi PhD, a member of the National Energy Council (DEN), said Indonesia actually did not need to build nuclear power plants, if the government could correct some basic weakness or mistakes in its energy management policies.

Explaining his view, Rinaldy said Indonesia had very great energy potentials : its crude oil reserves still stood at 86.9 billion barrels, its natural gas reserves at 384.7 TSCF, coal reserves at 104 billion tons, hydro-power reserves at 75.67 GW, geothermal reserves at 27 GW, and biomass reserves at 49.81 GW.

"Regretfully, 75 percent of our coal production and 50 percent of our natural gas output is exported. Although we also import crude oil, a large portion of our own crude production is also exported. This is related to the long-term contracts the government has signed with foreign contractors whereby it has lost control over crude oil and gas production and export," he said.

"So to make our own energy sources capable of meeting our own needs, the government should correct its wrong energy management policies rather than build nuclear power plants." Rinaldy said.

Dr Irwan Kurniawan, head of the Nusantara Business Institute for Management Research and Development, said the world`s uranium reserves of 5.469 million tons were only enough to meet the global need of 65,405 tons per annum for a period of 83.6 more years. But because the world`s need for electricity was growing at 2.7 percent per annum , the uranium reserves would actually be sufficient for only 44 years.

"Meanwhile, Indonesia`s uranium reserves of 53,000 tons are enough to meet the needs of five 1,000-MW nuclear power plants over a period of 25 years. So Indonesia also does not have enough uranium to maintain nuclear power plants for up to 50 years," Irwan said.

Editor: Ruslan Burhani

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Australia increases development assistance to Indonesia

Antara News, Wed, May 11 2011

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Jakarta (ANTARA News) - The Australian Government will increase its development assistance to Indonesia from Rp923 billion in 2010-2011 to Rp5.15 trillion for the 2011-2012 period.

"The increase in aid funding demonstrates Australia`s long-term commitment to reducing poverty and achieving sustainable development in Indonesia,"Australian Ambassador to Indonesia Greg Moriarty said in press release here Wednesday.

Ambassador Moriarty said that the Australian aid program will focus on alleviating poverty through social protection programs, supporting governance reforms, and improving poor people`s access to health, education, transportation, clean water and sanitation facilities.

Australia will support Indonesia achieve its goal of giving every Indonesian child good basic education.

The aid will improve education for more than 500,000 Indonesian children by building schools and improving the quality of their education, including for those with disabilities and children in poor and remote areas.

"Australia recognizes that sustainable and equitable economic growth in Indonesia can improve livelihoods, create job opportunities and raise household income. This is why we will increase our commitment to Indonesia by improving access to essential infrastructure services such as water, sanitation and transportation," he said.

Moriarty said that Australia has strong connections with the people and communities in Indonesia, and will continue providing assistance in the wake of emergencies and disasters, as well as help promote sustainable growth.

Today`s announcement reaffirms Australia`s ongoing commitment to scale up its development assistance program to 0.5 percent of the Gross National Income in 2015 and 2016.

The Australian Government remains committed to ensuring that every dollar spent on aid in Indonesia has the maximum impact on poverty eradication and economic development.

Editor: Aditia Maruli

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Chinese government offering scholarships to Indonesian students

The Jakarta Post, Jakarta | Tue, 05/10/2011

The Chinese government is offering hundreds of scholarships to Indonesian students looking to engage in undergraduate, graduate and doctoral studies in China beginning in September 2011.

“The Chinese government has prepared several scholarships for several programs through the China Scholarship Council, the Beijing Municipal Commission of Education as well as reputable universities in the country,” Chaerun Anwar, Education Attache at the Indonesian Embassy in Beijing, said Tuesday.

He added that the Indonesian Embassy was planning to provide hundreds of scholarships in 2012 for graduate and doctoral studies.

“The amount and period is still unknown. But, we will put it into action for sure because this is a form of cooperation we have with China in the field of education,” he said as reported by kompas.com.

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RI-US open energy investment roundtable

Antara News, Tue, May 10 2011

Jakarta (ANTARA News) - Indonesian Minister of Energy and Mineral Resources Darwin Zahedy Saleh and US Ambassador Scot Marciel opened the US-Indonesia Energy Investment Roundtable on May 9 in Jakarta.

According to a press release from the US Embassy to Indonesia received here, Tuesday, the Roundtable is a joint effort between the US and Indonesian governments that focuses on the private sector`s role in supporting Indonesia?s energy security and climate change goals as part of the bilateral Energy Policy Dialogue and US-Indonesia Comprehensive Partnership.

Approximately 200 participants representing US and Indonesian businesses, government, and trade associations attended the one-day conference.

The Round-table explored ways in which US and other foreign companies can partner with Indonesia to develop and enhance the country`s renewable energy, oil and gas production, and human development.

The event also highlighted policy options to maximize the private sector`s contribution to Indonesia`s economy and energy security goals.

The Roundtable is an integral part of the US-Indonesia Comprehensive Partnership, by which the two nations are working closely on clean and renewable energy as well as other key global challenges.

The Partnership advances cooperation on a wide range of issues such as environment, health, education, science and technology, human rights, and entrepreneurship.

The US and Indonesia have engaged in bilateral energy talks since 1990 and launched the Energy Policy Dialogue in 2005 to reaffirm our bilateral ties to support policy options that enhance energy security for both countries.

The most recent Energy Policy Dialogue was held in June 2010 in Washington, D.C.

Editor: Priyambodo RH

Yudhoyono Opens International Corruption Conference

Jakarta Globe, May 10, 2011

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Fighting corruption is not just a moral imperative but also a democratic, political, social, and economic obligation, President Susilo Bambang Yudhoyono says.

Yudhoyono made the statement in his opening address at the International Conference on Foreign Bribery in Business Transactions 2011 in Bali on Tuesday.

Present in the conference were Corruption Eradication Commission (KPK) officials and representatives of law enforcement and corruption eradication from the G-20, OECD, APEC and Asian Development Bank, as well as national and foreign observers.

“This gathering is truly a corrupter's worst nightmare! Thank you for taking part in this very important conference, to talk about combating bribery in international business transactions,” Yudhoyono said, adding that fighting graft had been a cornerstone of his administration.

Commenting on bribery cases, the president said the money spent on bribes meant the money was not used to improve roads, schools and hospitals.

“By turning a blind eye to a bribe here and a bribe there, we are compromising the quality of life for ourselves, our parents, our children. We all pay the price. Ultimately, bribery robs all of us of true progress and economic growth,” Yudhoyono said.

He said that even today, systemic corruption continued, and in developing countries, it did so by taking advantage of the global financial network.

The corrupt exploit the international financial network, covering their tracks in foreign jurisdictions, he said, adding that as long as these “safe havens” existed, people would continue to siphon money and send it overseas, he said.

“We cannot keep on supporting this endemic problem,” the president said, adding that the World Bank estimated that bribery accounted for some 3 per cent of the world’s economy, or more than $1 trillion dollars.

He said bribery was prevalent in tax evasion efforts, and it was also rife in the investment sector, particularly foreign investment.

But Yudhoyono said law enforcement agencies were not keeping idle for some 150 companies and individuals, in more than 10 countries have been charged with bribery and duly punished.

“Today, some 250 cases remain under investigation. Yet, these efforts have not been enough.”

Antara

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President SBY wins UN disaster management award

Antara News, Tue, May 10 2011

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Jakarta (ANTARA News) - President Susilo Bambang Yudhoyono will receive a UN award for his outstanding work in the field of disaster management and risk reduction, Cabinet Secretary Dipo Alam said.

"I am pleased and proud that President Yudhoyono will receive a UN award `Global Champion on Disaster Risk Reduction` in Geneva, Switzerland, on May 10, 2011," Dipo said in a statement on Monday.

"The UN award is the first of its kind and President Yudhoyono is the first to receive the award in recognition of his leadership in implementing natural disaster mitigation programs," he said.

Dipo said the President had assigned the head of the Natural Disaster Mitigation Board (BNPB) to represent him in receiving the award as well as to convey his message to delegates of 160 countries to the Conference on Global Platform on Disaster Risk Reduction in Geneva. UN Secretary General Ban Kim-moon is slated to open the conference.

"The Indonesian government`s hard work in handling the impact of a tsunami in Aceh at the end of 2004 as well as natural disasters in the rest of Indonesia and its relief assistance to other countries showed the seriousness and awareness of President Yudhoyono as one of the world leaders who pay attention to the challenge and threat of natural disasters," he said.

"I say congratulation to President Yudhoyono. May his hard work encourage other developing countries to pay more attention to natural disaster risk management," he said.

Editor: B Kunto Wibisono

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Medco to produce 3,000 barrels of oil in Tunisia

Rangga D. Fadillah, The Jakarta Post, Jakarta | Mon, 05/09/2011

Medco Tunisia Anaguid, a subsidiary of Indonesia’s largest private oil and gas firm, PT Medco Energi Internasional (MEI), plans to produce around 3,000 barrels of oil per day (bpd) at the Durra field in Tunisia.

MEI president commissioner Hilmi Panigoro said on Monday that the company expected the production to kick off in June this year.

“We hope to begin producing oil in June while continuing to test how many barrels we can produce at the block daily in the long-term,” he told reporters on the sidelines of the US-Indonesia Energy Investment Roundtable in Jakarta.

Medco Tunisia Anaguid holds a 20 percent stake in the Durra block while the remaining 80 percent is owned by OMV Anaguid and Tunisian state-owned oil and gas company Tunisienne d’Activites Petrolieres, with 30 percent and 50 percent stakes respectively.

RI prioritizes geothermal energy usage

Antara News, Thu, May 5 2011

Kuta, Bali (ANTARA News) - The Agency for the Assessment and Application of Technology (BPPT) said the use of geothermal energy currently tops the list of government`s priorities in developing new energy in the country because of its huge potentials.

"We predict geothermal potentials in the country to reach 26,000 megawatts," BPPT Deputy Chief for Information Technology, Energy and Materials Unggul Priyanto said on the sidelines of an international congress on ocean energy and deep ocean water application (DOWA) here on Thursday.

Only small part or 1,200 megawatts of the geothermal potentials had been utilized, he said.

In view of the untapped huge geothermal potentials, he said the government had decided to prioritize the use of the new energy.

"Indonesia has the largest geothermal deposits in the world. Therefore, many European countries want to utilize it," he said.

From the economic and technological standpoint, geothermal energy was cheaper than any other types of new energy, he said.

"The investment and production cost of geothermal power plant are also lower than those of power plants using marine potentials," he said.

He said the construction of a geothermal power plant with a capacity of 1 kilo watt would only cost US$2,000.

Editor: Heru

Volkswagen to build factory in Indonesia soon

Antara News, Thu, May 5 2011 

Jakarta (ANTARA News) - European car maker Volkswagen will soon build a factory in Indonesia or at the end of 2011 at the latest, Industry Minister MS Hidayat said.

"I have had a talk with them (Volkswagen) about their plan. They already have a blueprint on the project," said Hidayat after attending the ASEAN-UE business summit at the Jakarta Convention Center (JCC) here on Thursday.

Volkswagen had been exploring the possibility of setting up a production facility in Indonesia for the past three years and now it was hoping to realize it later this year, Hidayat said.

Volkswagen`s intention to expand its business in Indonesia was in line with the European country`s plan to increase its investment in Indonesia, especially in the automotive sector which had huge market potential.

Hidayat, however, did not mention the amount Volkswagen would invest in Indonesia.

The minister said the German auto maker`s plan to set up shop in Indonesia was in line with the exhaust emission standards campaign in 2012 towards Euro-3.

"This is good news for the domestic automotive industry because the European automotive industry has no base yet in Indonesia where the market is so far dominated by Japanese and Korean brands," Hidayat said.

According to earlier reports, the investment value of the would be Volkswagen factory in Indonesia was about 35 million euro and it was expected to absorb 2,000 to 4,000 workers.

The ASEAN summit is scheduled to take place at the Jakarta Convention Center on May 7-8, 2011.

Editor: B Kunto Wibisono

EU will inject €30m to boost RI trade, investment climate

Esther Samboh, The Jakarta Post, Jakarta | Wed, 05/04/2011

The European Union’s (EU) 27 member states will inject €30 million (US$44.66 million) into Indonesia to strengthen the trade and investment climate, according to the countries’ joint press statement.

“[The €30 million support] includes a program to support Indonesian business organizations (ACTIVE), the Trade Support Program (TSP) II to support the Indonesian government in the field of export quality infrastructure and the Trade Cooperation Facility (TCF), a flexible mechanism to support attracting investments to Indonesia,” said an official statement issued following EU Trade Commissioner Karel de Gucht’s visit to Indonesia.

The EU member states provided over €66 million in 2009.

Negotiations between Indonesia and the EU would facilitate the export of wood and paper products from Indonesia to European companies, De Gucht said at a news conference at the Kempinski Hotel in Jakarta.

Indonesia is Europe’s largest investment destination and second largest market. The EU invested a total $2.78 billion in Indonesia -- excluding the oil and gas, banking and financial sectors – for a total of 521 projects, Investment Coordinating Board (BKPM) data shows.

In his first visit to Indonesia, De Gucht met with Trade Minister Mari Elka Pangestu to discuss bilateral trade and investment issues, including and several issues of market access

The high-level gathering assessed the EU-Indonesia Vision Group’s recommendations to boost commercial relations between the countries. Established in 2009, the vision group was formed to invigorate the relationship between Indonesia and the EU by strengthening economic growth and the alleviation of unemployment and poverty through investment and trade in key sectors.

“One important step recommended by the Vision Group after the completion of its report is to have early consultation with stakeholders to generate widely shared interests and support from businesspeople, government officials and civil society in both countries on the idea of Indonesia-EU comprehensive economic partnership agreement,” the joint statement said.

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Jusuf Kala invests Rp4 trillion in PLTA (Hydro Power) Kerinci

Antara News, Thu, May 5 2011

 "We will be making a long-term investment, one century or 100 years, not only for a couple of years, but the result will also be enjoyed by our children and grand children, like the Jatiluhur in West Java," he said.

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Jakarta (ANTARA News) - Jusuf Kala, owner and president commissioner of PT Bukaka said he will invest Rp4 trillion in a hydro power project.

"The project may cost Rp4 trillion, may be more, as one turbine for the project with a capacity of 10 MW aone will cost Rp15 billion, while we have to build four giant turbines with a total capacity of 1,800 MW in two points," he said in Kerinci Wednesday.

He made the statement when inspecting the PLTA Kerinci project in Air Mlancar village, Muaro Imat, Batsng Merangin Kerinci sub-district, the construction of which was started by the end of last month.

Also accompanying Yusuf Kala in the inspection was Ahmad Kala, his younger brother as president director of the family company who has a wide experience in building PLTAs in various parts of Indonesia like Poso, Pekanbaru, and Maninjau lake in West Sumatra.

In the meantime, the former 2004-2009 vice president said, such a big investment would not lead to negative sentiments to the business world he was undertaking, because investment in the power sector is highly potential and serves the interest of people and the environment.

"Such big investment may look very high today, in in the future electricity will become a primary need which must be satisfied because nothing will in the future not use electricity and even cars will be running on power," he said.

"We will be making a long-term investment, one century or 100 yeas, not only for a couple of years, but the result will also be enjoyed by our children and grand children, like the Jatiluhur in West Java," he said.

Editor: Heru

EU and Indonesia sign deal on illegal timber

BBC News, By Richard Black, Environment correspondent, 4 May 2011

Orangutans are among the animals threatened by illegal
logging in Indonesia

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Indonesia and the European Union have finalised an agreement aimed at ending the trade in illegally-sourced wood.

The agreement will mean that EU companies will only be able to import timber that is certified as complying with Indonesian environmental laws.

The East Asian nation possesses some of the world's most lavish forests, which in turn support spectacular wildlife.

The EU has concluded similar deals with four African countries, and Liberia is expected to follow suit next week.

The deal - being signed in Jakarta - is known as a Voluntary Partnership Agreement (VPA).

"Not only is Indonesia the first Asian country to conclude VPA negotiations with the EU, it is also by far the largest timber exporter to enter into such an agreement," said EU trade commissioner Karel de Gucht.

Currently, European countries import about $1.2bn (£720m) worth of timber and paper from Indonesia each year.

This accounts for about one-sixth of the nation's exports.

Importing problems

Last year, a major assessment concluded that the rate of illegal logging in Indonesia had declined by about 75% over the preceding decade.

Even so, it said, 40% of the timber harvested was illegal.

This was despite an initiative dating back to 2003 in which the government, alongside environmental groups and some companies, attempted to rein in illegal loggers, processors and exporters.

Wood products as well as raw timber will be
included in the measures

Meanwhile, the US and EU have recently stepped up measures designed to block wood and wood products of illegal origin.

The US amended the Lacey Act so that companies are responsible for making sure their imports are legal, and the totemic Gibson guitar company is among those investigated as a result.

Last year, the European Parliament passed legislation with similar components, which comes into effect in March 2013.

Mardi Minangsari of Indonesian environment group Telapak said she was hopeful that tackling both ends of the chain would bring results.

"We have worked hard with other stakeholders to design a system that will involve independent auditing and independent monitoring by civil society," she said.

"Also, we know that the new legislation in the US and EU preventing the entry of illegal timber has played a big role in convincing industry of the need to transform the way timber is harvested in Indonesia."

Companies wanting to export to the EU will have to be able to track their products from forest to exporting port.

Independent auditors - yet to be appointed - will be charged with verifying that companies' tracking is up to standard.

These auditors will report back to a joint Indonesian-EU committee.

Although only exports to Europe are covered by the agreement, the EU hopes that setting up the system will help Indonesia curb illegal logging and illegal exports across the board.

"By engaging with Indonesia, by having a good process to look at the legislative framework and identify the gaps, we hope to help them improve the whole situation," a European Commission official told BBC News.

Responsible sources

Generally, restrictions on the timber trade have had a mixed reception in the industry.

Some companies see it as a threat to their business - others, as an opportunity, ensuring that responsible practices are not penalised and that the supply of raw materials will be safeguarded.

Commenting on the latest agreement, Andre de Boer, secretary-general of the European Timber Trade Federation, congratulated the Indonesian and EU decision-makers.

"This regulation will support our quest for a level playing field in the market, encouraging buyers to purchase legal and sustainable timber, and therefore supporting producers who act responsibly," he said.

The EU is expected to conclude a similar agreement next week with Liberia.

A decade ago, the West African republic saw exceptionally rapacious logging, with armed factions trading timber concessions for weapons, prolonging the years of bloody civil conflict.

Finding America's Best Batik Designers

Jakarta Globe, May 03, 2011

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Whether it's Bill Clinton or Jessica Alba, it's clear a myriad of Americans have already been won over by batik. With this in mind, the Indonesian Embassy in the US is holding a batik design competition for American citizens.

A woman draws a batik pattern in Solo.
(Photo: Jurnasyanto Sukarn, JG)

The American Batik Design Competition is aimed at creating a marriage of Indonesia's time-honored batik motif and America's diverse culture. While the end product may still manifest a trait of the original motifs, the design is expected to exhibit American spirit and values.

"The 21st century will be an era of confluence and fusion between cultures,” Ambassador Dino Patti Djalal said during the launch of the event last month.

“This is a perfect time for the rich heritage of Indonesian batik to meet American contemporary designs."

Participants, American citizens 16-years-old and above, have to submit their designs — just the digital design, not on an actual textile — before August 1.

While usual fashion elements such as colorfulness, imagery and composition factor in, key to winning the competition is how the design conveys the contextual meaning of American values through batik.

And of course, the design should be friendly enough to be inked on an actual fabric.

Once the winners have been announced, the digital design will be handed over to the skilled Indonesian batik artists to be translated into a hand-made batik.

The event was first launched on April 8 in Washington DC, and then further introduced in New York and San Francisco, before going to Houston and Chicago this month.

Three first-place winners of the competition will fly to from the US to Indonesia for a two-week batik excursion in a number of cities, while having their designs showcased to aficionados in an exhibition in San Francisco, Washington DC and Jakarta.

For the complete rules and guidelines, click here.

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Sany to Build $200m Factory in Cikarang

Jakarta Globe, Camelia Pasandaran & Faisal Maliki Baskoro, April 30, 2011

China-based coal mining equipment maker Sany signed a memorandum of understanding (MoU) with Indonesia on Saturday tp invest up to $200 million to build a production base for its heavy machineries in Cikarang, Bekasi.

“Sany is convinced that we're able to sell our products to Asian countries,” said the president director of Sany, Liang Wengen.

“Our market share in the Asian market is still very small, at less than 5 percent. So [through] the investment in Indonesia, we hope we can increase our market share in Asian countries.”

Wengen said the initial injection would be $15 million, with the total investment at $200 million.

“This is going to the biggest investment that Sany has made.”

Sany's plan is part of the Chinese government's pledge to support development in Indonesia and improve the trade balance between the two countries.

Wengen said the factory would play an important role in boosting revenue to 350 billion RMB ($54 billion) in 2015, up from 90 billion RMB target for this year.

"We're not just going to manufacture here, but we will also transfer our technology to Indonesia," he said.

The factory will be located on 10 hectare in Cikarang industrial zone. It will have an annual capacity to manufacture 1,000 units of heavy equipment and is expected to absorb 1,500 workers. Construction is expected to star in July, with operations expected to open in 2012

"We have a passion for Indonesia. Its huge population and low labor cost are also what draw us here. We're optimistic that our operation here will break even in no time," Wengen said.

Sany group started operations in 1989 and currently has factories in the United States, Germany, India and Brazil. The corporation employs more than 53,000 people in more than 120 countries. It's sales last year reached 50 billion RMB.

Agus Cahyana, the secretary general of the Industrial Ministry, said that the government welcomed the new investment would facilitate it by helping the company find the location and providing market data.