Foreign, local firms to join tender for coalbed methane fields

Ika Krismantari, The Jakarta Post, Jakarta

Eight foreign and local companies will take part in the country's first-ever exploration and production tender for coalbed methane (CBM) gas in August this year, an official says.

The Energy and Mineral Resources Ministry's director for the upstream oil and gas industry, Priyono, said last week the companies would include Australia's third largest oil and gas producer, Santos, the U.S.-based oil firm Vico, Indonesian state oil and gas company Pertamina, Medco Energi Internasional Indonesia, which is the country's biggest publicly traded oil company, and Indonesia's largest gas distributor, Perusahaan Gas Negara (PGN).

The tender will be conducted on a direct offer basis, with companies having carried out a feasibility study to be given priority, he said.

CBM fields to be tendered are located in South Sumatra and in Barito, South Kalimantan. They are estimated to have deposits of 183 trillion cubic feet and 101.60 trillion cubic feet of gas, respectively. These two areas are believed to hold the largest CBM deposits in the country.

"Pertamina will sign with us in May, as they started the project earlier, while other investors will have to wait four more months to finish their studies," Priyono said.

Pertamina and its partner Ephindo have been conducting a joint study on a CBM block in South Sumatra and Jambi since the end of 2006.

Energy and Mineral Resources Minister Purnomo Yusgiantoro has called on oil and gas companies to begin investing in the coalbed methane sector, considering Indonesia has the largest CBM deposits in the world after China, with estimated total reserves of 453 trillion cubic feet, or the equivalent of about 81.5 billion barrels of oil.

If it was able to tap these reserves, Indonesia could meet its gas export commitments while at the same time filling rising domestic demand.

The government recently said it was reviewing its liquefied natural gas export policy amid an increase in gas demand at home.

The government hopes to attract up to US$2.5 billion in investment to develop 90 CBM wells expected to produce up to 100 million cubic feet of gas per day by 2014.

RI, S Korea to develop 40 joint projects

Jakarta (ANTARA News) - Indonesia and South Korea plan to build 40 joint projects in eight different sectors to strengthen the economic cooperation and partnership between the two countries, a press statement from the Indonesian embassy in Seoul said on Sunday.

Spokesman of the Indonesian embassy Herawatin Wargamihardja said in a press release that a South Korean 177-member economic mission will visit Jakarta from April 30 to May 2, 2007, to discuss the realization of the 40 joint projects.

It said the projects cover trade and investment, energy and natural resources, infrastructure and construction, information technology, defense, forestry, agriculture and maritime affairs, research and development.

Therefore the members of the South Korean delegation led by the country`s Minister of Trade, Industry and Energy Kim Young Joo would include government officials of business executives those from the Petroleum Corp, Kotra, Korean Electric Power, and other private companies such as CJ, SK, LG, Daewoo International, STX, and Hanhwa.

"The South Korean government early this year set up a movement to expand overseas investment. Therefore, the result of the South Korean business mission to Indonesia is expected to be mutually beneficial to the two countries," Herawatin said.

The delegation is scheduled to meet President Susilo Bambang Yudhoyono on May 2, Vice President Jusuf Kalla on April 30, and also meet the Coordinating Minister for the Economy, the Foreign Affairs Minister, the Energy and Mineral Resources Minister, the Transportation Minister, the Trade Minister,the Industry Minister, the Communications and Information Minister, the Agriculture Minister, the Forestry Minister, the Head of the Investment Coordinating Board, and the chairman of the Indonesian Chamber of Commerce and Industry.

Indonesia`s CAPC to build US$40 mln facility

Jakarta (ANTARA News/Asia Pulse) - The country's largest petrochemical company PT Chandra Asri Petrochemical Center (CAPC) will build another naphtha cracking unit this year, with an investment of US$40 million.

The additional facility is expected to increase its installed production capacity for polyethylene from 520,000 tons to 590,000 tons a year. Naphtha is used as a basic material for polyethylene, which is a feedstock for benzene.

CAPC secretary Suhat Miyarso said the new facility and the recent acquisition of PT Styrene Monomer, the country's only producer of ethyl benzene and styrene monomer, would make CAPC a greater integrated petrochemical company.

Norways to contribute US$500,000 to RI for UNFCC prepatory meeting

New York (ANTARA News) - The Norwegian government will contribute US$500,000 to Indonesia for the preparatory meeting of the United Nations Framework Convention of Climate Change (UNFCC) in West Java`s town of Bogor in October, Indonesian Ambassador to Norway Retno L. Marsudi said here.

The Norwegian government made the commitment to providing Indonesia with 500 thousand dollars for the UNFCC preparatory meeting when Indonesian Environment Minister Rachmat Witoelar was visiting Oslo on April 26-27, 2007, the ambassador said.

During his visit to Oslo, Witoelar met with Norwegian Prime Minister Jens Stoltenberg, Environment Minister Helen Oddveig and Minister for Development Cooperation Erik Solheim.

Retno said that the Norwegian assistance would be provided as a follow up to the results of Norwegain Prime Minister Stoltenberg`s visit to Jakarta on March 28-30, 2007.

During his visit to Jakarta, Stoltenberg and President Susilo Bambang Yudhoyono witnessed the signing of a memorandum of understanding between the two countries on energy and climate change.

On the occasion, Stoltenberg said the cooperation on climate change was an important part of Indonesia-Norway`s bilateral ties.

According to the ambassador, when Witoelar visited Oslo, Stoltenberg indicated he would attend the United Nations Framework Convention of Climate Change to be held in Bali next December.

"The prime minister said he had plan to attend the convention," Retno who accompanied the minister during his meetings with Norwegian state officials, said.

At a meeting with the prime minister, the two sides agreed to discuss later concrete projects the two countries would be doing in connection with eco-friendly housing as suggested by the Kyoto protocol in 1997.

The technical teams of the two nations - Indonesia is represented by two special staffers and one expert staff of the minister - held talks to discuss the project on Friday.

The projects will be funded by private sectors from Norway.

Contract for US-funded Banda Aceh-Calang road to be signed in May

Banda Aceh (ANTARA News) - The contract for the construction of Banda Aceh-Calang road section which is to be financed by the United States is expected to be signed next month, a regional government official said here on Saturday.

"The contract for the construction of the road is expected to be signed by the government and the United States Agency for International Development (USAID) in May," Assistant II to the Aceh Regional Government Secretary, Usman Budiman, said when opening a workshop on the Aceh Recovery Forum.

He said that the land clearance was now in progress and was expected to be completed late this month or early in May.

The United States government through the USAID will rebuild the 150-km long Banda Aceh-Calang (Aceh Jaya district) road which was damaged by the tsunami which hit the province in December 2004.

Head of the Nias-Aceh Rehabilitation and Reconstruction Agency (BRR), Kuntoro Mangkusubroto said 54 percent of the land clearance had been finished.

"We are still facing a problem with the land clearance in Aceh Besar district, while in Aceh Jaya, the land clearance is almost finished," he added.

He said that the United States for International Development had repeatedly asked about the land clearance problem.

KL's Zelan bidding for second $571m power project in RI

The Jakarta Post

KUALA LUMPUR (AP): Malaysia's Zelan Holdings is bidding for another 2 billion ringgit (US$571 million, euro476 million) power plant project in Indonesia as well as one in Botswana in southernAfrica, a report said Sunday.

In February, a Zelan-led consortium won a 2.12 billion ringgit (US$606 million; euro505 million) project to build a coal-fired power plant in Rembang in the Indonesian province of Java.

Zelan chief executive Albert Chang was quoted by The Edge Daily as saying that the company has tied up with China's Dongfong Electric Corp. to bid for a second 600 megawatt power project at Tanjung Jati, also in Java.

Zelan and state-owned Dongfong, which is one of top three turbine producers in China, are also jointly bidding for a 1,200 megawatt power project in Botswana, he said in the report.

The Rembang and Tanjung Jati projects are part of the Indonesian government's program to build more plants that has attracted bids from established Korean, Chinese and Japanese consortiums, the report said.

Chang was quoted by The Star as saying that Zelan viewed Indonesia as an exciting market, with at least 10 new plants with a combined capacity of 7,000 megawatts to be built in Java this year. Five of the projects, including the one in Rembang, have been awarded, he said.

Indonesia is also planning another 25 new power projects outside Java this year, with total capacity of about 10,000 megawatts, he said in the report.

Chang said the Zelan group, which is involved in construction, manufacturing and property, has a current order book of 5 billion ringgit (US$1.4 billion; euro1.2 billion), 80 percent of which involved overseas work including two infrastructure projects in Saudi Arabia.

No other details were available. Zelan officials could not be reached Sunday for comments.

Pertamina to import LGP from Mideast, Thailand, Australia

Ika Krismantari, The Jakarta Post, Jakarta

State-owned oil and gas firm Pertamina will import some 1.5 million tons of liquefied petroleum gas (LPG) from Qatar and the United Arab Emirates in 2009 to support the government's campaign to gradually replace highly subsidized kerosene with natural gas.

Pertamina marketing and trading director Ahmad Faisal said here Friday that the contract for the LPG imports would soon be signed with Japan-based Ithocu Group, which has been appointed agent for the LPG purchases

Ahmad added that Pertamina was also in talks with the Autralian unit of BP and a Thai company to help meet Indonesia's LPG requirements, which are expected to amount to 3.9 million tons a year by 2010.

Rising LPG imports are inevitable if the government's kerosene-to-LPG conversion program is to be feasible as the country's LPG production is not sufficient to meet domestic demand. At present, about 20 percent of the country's LPG needs, which amounts to about 1.5 million tons a year, is imported.

After being delayed for several months, the program appears to now be back on track. Pertamina has designated 11 companies to supply gas stoves as part of the program.

The gas-stove scheme, which should have commenced in January, was delayed as the companies taking part in the tender for the procurement of the gas stoves failed to meet the requirements.

Pertamina has allocated Rp 200 billion (US$21 million) for the procurement of 4.17 million LPG stoves as part of the scheme, which is expected to be launched next month.

According to the government's estimate, the kerosene-to-LPG conversion program will save up to Rp 21 trillion annually.

One kilogram of LPG is more or less equal in energy content to three liters of kerosene. Pertamina, the only LPG distributor in the country, sells LPG at Rp 4,250 per kg, while heavily subsidized kerosene costs Rp 2,000 per liter.

Malaysian investor wants to invest in CPO production in S Sumatra

Palembang, S Sumatra (ANTARA News) - HDZ Biodiesel Corporation Sdn Bhd of Malaysia wished to invest US$50 million to US$60 million in oil palm plantations in South Sumatra, a Malaysian official said.

The wish was conveyed in a meeting between Malaysian Ambassador to Indonesia Dato Zainal Abidin Zain and HDZ Biodiesel Corporation Sdn Bhd chairman Datuk Seri Azumi Muhammad, and South Sumatra administration officials including administration secretary Musyrif Suardi and administration assistant for economic, financial and development affairs Budi Rahardjo here Friday.

Datuk Seri Azumi said his company believed that its investment in crude palm oil production in the province would be successful as the political life in Indonesia in general and in South Sumatra in particular is stable.

The location for a CPO factory had not been determined although the Malaysian ambassador and the investor company had already visited Bengkulu and Palembang.

Meanwhile, Musyrif said South Sumatra had allocated 3.2 million ha land for plantations and other horticultural crops, 2.2 million ha of which had already been planted with rubber, oil palm, coffee, and horticultural crops since 2004.

ADB will construct Aceh-Ulee Lheue two-way road

Banda Aceh, NAD (ANTARA News) - The Asian Development Bank (ADB) in cooperation with the Aceh-Nias Reconstruction and Rehabilitation Agency (BRR) will widen the Banda Aceh-Ulee Lheue road into a two-way road, a spokesman said.

The BRR Director for bridge and road affairs Eddy Mofizal made ther remarks here on Thursday concerning the road passing the Meuraxa district.

In addition, other parts of the road which will be lengthen is the road connecting Ulee Lheue-Simpang Lima in Peukan Bada sub-district, he said, noting that the construction work will start in this upcoming May.

ADB provided some rp84.019 billion in fund to build the roads, which will include the construction of two bridges in Laguna and Lamjamee villages in Aceh Besar district.

The BRR was established based on the presidential decree, following tsunami devastating the most western province in December 2004, leaving hundred thousands of people died and missing.

Seven gas contracts worth $3.1 billion signed

JAKARTA (Antara): The Indonesian Implementing Body of Oil and Gas (BP Migas) signed Wednesday seven gas contracts with a total volume of 738.52 trillion British thermal units worth US$3.1billion.

The gas would be used to supply power plant, fertilizer firms, oil refinery and other industries.

BP Migas head Kardaya Warnika said the gas contracts were necessary to maintain the availability of gas at home.

"300 trillion Btu would be used by power plants, the rest will be for fertilizer firms, oil refineries, and other industries in West Java," he said.

The seven gas buyers are PLN (343.4 trillion Btu), Balikpapan refinery (65 trillion Btu), Pupuk Sriwijaya (326.03 trillion btu), Titis Sampurna (2.19 trillion Btu), Pertiwi Nusantara Resources (0.5 trillion Btu), and Energi Kompresindo (0.7 trillion Btu).

Japan allocates $15.7 million for Jakarta MRT

JAKARTA (Antara): The Japanese government reiterated that it would lend Indonesi US$15.7 million to develop Jakarta Mass Rapid Transit System (MRT) in order to reduce traffic congestion and improve Indonesian investment climate through infrastructure development, a Japanese official said.

The Japanese readiness to provide Indonesia with the loan was first conveyed in a meeting between Indonesian Foreign Affairs Minister Hassa Wirajuda and his Japanese counterpart Taro Aso on Nov. 28, 2008 when President Susilo Bambang Yudhoyono visited Japan, deputy Japanese Ambassador Satoru Satoh said Friday.

The MRT project will be built from Lebak Bulus area in South Jakarta to Dukuh Atas area which already has a railway track. The system will have 4 km track under the ground and 10.5 km above the ground. Construction of the MRT system is slated to be finished in 2014.

Malaysia leads plan for ambitious undersea fiber optic cable directly linking U.S. and S.E. Asia

The Jakata Post

KUALA LUMPUR(AP): Seventeen major telecommunications companies signed a pact Friday to build a US$500 million undersea fiber optic cable between Southeast Asia and the United States they claim will be relatively safe from earthquakes and tsunamis.

The link will offer "a timely increase in both the capacity and diversity of Internet links between Asia and the U.S., bearing in mind the disruptions caused by the recent Taiwan earthquake," Abdul Wahid Omar, chief executive of Telekom Malaysia, said at the signing ceremony.

Internet users will get faster and more reliable service once the high-bandwidth cable starts operating in December 2008, he said.

Telekom Malaysia, which is leading the consortium of companies, said construction of the 20,000-kilometer link would begin immediately. It said it would be the first submarine cable system linking Southeast Asia directly to the United States.

The fiber optic cable, dubbed the Asia-America Gateway, will connect the U.S. West Coast with Malaysia, Singapore, Thailand, Brunei, Hong Kong, the Philippines, Guam and Hawaii, as well as offer "seamless interconnection" for those locations with Europe, Africa and Australia, Telekom said in a statement.

It will "provide an alternative and a more secure link for traffic from the region to the U.S.A.," Telekom said. "This low-risk route was designed to avoid the volatile and hazardous Pacific Ring, thus mitigating the effects from natural disasters like earthquakes and tsunamis."

A magnitude 7.1 quake snapped undersea cables near Taiwan on Dec. 26, disrupting phone and Internet communications across Asia as companies scrambled to reroute traffic through satellites and undamaged cables. Services were gradually restored in the days after the quake.

Qatar Islamic Bank Applies to BI for Business License

Thursday, 26 April, 2007 | 17:03 WIB

TEMPO Interactive, Jakarta: The Qatar Islamic Bank has already applied for permission to establish a new Syariah bank in Indonesia.

“We have asked them (the Qatar Islamic Bank) to complete the requirements first,” said Siti Fadriyah, Bank Indonesia (BI) Deputy Governor, after the “What we should learn from Shari’ah Economics” discussion in Jakarta.

However, Siti did not want to say when the permit will be issued by BI.

“We’re waiting for the requirements to be completed,” she said briefly.

In accordance with current provisions, the central bank will issue the permit in the form of business or principal license 30 days after the requirements are completed.

BI has also asked the Qatar Islamic Bank to establish a limited company in Indonesia.

This is one of the requirements for establishing a new bank.

AGOENG WIJAYA

Rp 300 billion sugar refinery to be built in West Sumatra

Syofiardi Bachyul Jb, The Jakarta Post, Padang, West Sumatra

PT Semesta Berjaya is set to build a sugar refinery in the Padang Industrial Park, Padang Pariaman regency, West Sumatra, at a cost of some Rp 300 billion (about US$33.3 million).

Company director Burhanuddin said the refinery, which would be built on a 7-hectare site, would have a refining capacity of 500 tons per day and was expected to meet surging sugar demand in the province.

"Construction will commence in July and we hope that the refinery will have entered into commercial operation within three years," he said after the groundbreaking ceremony, which was also attended by West Sumatra governor Gumawan Fauzi.

To ensure a continuous supply of sugercane, the company will develop 17,000 hectares of sugarcane plantations at five different locations in the province in collaboration with local growers.

About 5,000 ha of the planned sugarcane plantations would be located in Pesisir Selatan regency, 5,000 ha in Dharmasraya regency, 3,000 ha in Padang Pariaman regency and 1,000 ha in Padang.

Burhanuddin said the sugar refinery and sugarcane plantations would create up to 2,800 jobs.

In the early part of the 20th century, Indonesia was the second biggest sugar exporter in the world after Cuba, with annual exports of between 1.5 million and 2.5 million tons, and an annual production of between 2 million and 3 million tons.

However, production has declined sharply since then, turning the country into a net sugar importer, Baharuddin said.

Hotel Sahid to build new hotel, offices and apartments

The Jakarta Post, Jakarta

Publicly listed star-rated hotel chain PT Hotel Sahid Jaya International Tbk. is set to expand its business by building a new hotel, and office and apartment buildings in Jakarta at a total cost of Rp 1.82 trillion (US$200 million) next year.

Finance director Muhammad Nurdin said Wednesday that the company would start the construction of the hotel and office towers, to be called the Sahid Perdana, early next year. The construction work was expected to be completed by the end of 2009.

To finance the hotel and office towers project, estimated to cost Rp 1.2 trillion, the company plans to launch a rights issue worth Rp 541 billion this year, he said.

"We will also list our company on the Singapore Stock Exchange due to the better prospects for property businesses there," Nurdin announced after the company's annual shareholders meeting.

He said the company was also likely to either issue bonds or seek loans to help finance the project.

"We haven't decided whether to raise the funds solely from the rights issue, or whether to issue bonds or take out loans," he said.

He added that the company would also use the proceeds from the sales of office and apartment units to fund the development.

He said that besides Sahid Perdana project, Sahid was also collaborating with property developer Pikko Group to build the Sahid Sudirman Residence complex with 675 apartments starting May.

As part of the Rp 560 billion development, Sahid would provide 6,700 square meters of land, while Pikko would be responsible for the physical construction of the building and infrastructure. Both companies have agreed to split their earnings, with Sahid getting 45 percent.

Muhammad said that Sahid would also renovate its flagship Sahid Jaya Hotel in Central Jakarta this year.

"We have applied for a Rp 150 billion loan from Bank Mega based on an annual interest rate of 15 percent and a maturity of six-and-a-half years," Nurdin said.

He explained that Rp 80 billion from the loan would be used for the renovation of the Sahid Jaya, and the remaining Rp 70 billion to repay its debts to Bank Mandiri.

The company expects a 9.1 percent increase in revenue this year to Rp 98.1 billion from Rp 89.9 billion last year, and a 17.03 percent decrease in operating costs to Rp 64.8 billion from Rp 78.2 billion previously.

Currently, it operates 17 hotels in Sumatra, Java, Bali, Lombok and Sulawesi.

St. Regis to Debut in the Capital City of Indonesia

Opening in 2011, The St. Regis Hotel & Residences, Jakarta will Offer Guests Superior Design and Unparalleled Service in One of Asia’s Most Exciting Metropolises

BusinessWire

WHITE PLAINS, N.Y. & SINGAPORE--(BUSINESS WIRE)--Starwood Hotels & Resorts Worldwide, Inc. today announced an agreement with Duta Anggada Realty Tbk to manage the St. Regis Hotel & Residences, Jakarta. Located on Jalan Jendral Sudirman – also known as Jakarta’s Wall Street – the newly built property will be ideally positioned to serve the city’s bustling business community. The St. Regis Hotel & Residences will offer 176 guest rooms and 284 whole-ownership residential units when it opens in 2011.

As the economic and political capital of Indonesia, Jakarta is known for its cosmopolitan flair and diverse blend of cultures. One of Asia’s most exciting and most densely populated metropolises, Jakarta is also the principal gateway to the rest of Indonesia. Top tourist attractions include the National Museum, the extravagant Istiglal Mosque, and the city’s most famous landmark - the National Monument. Avid shoppers will delight in the vast selection of designer labels in Jakarta’s numerous mega-malls, while adventurous travelers can explore the city’s traditional markets, which offer everything from produce and poultry to handcrafts and gold trinkets.

Designed by the internationally recognized American architect, Richard Keating, the St. Regis Hotel & Residences, Jakarta offers convenient access to both the business district centered around Jalan MH Thamrin and the upscale residential district of Kebayoran Baru. With a highly coveted address on one of Jakarta’s most prestigious streets in the financial district, the St. Regis Hotel & Residences, Jakarta will be close to a variety of international banks, multinational companies and embassies. The development will comprise a mixed-use complex that consists of the hotel, residences and office space. The St. Regis Hotel & Residences, designed by Dimazo Kato Partnership, will be located in two towers next to the hotel.

“The strategic location of the project in the heart of Jakarta, combined with the uncompromising, bespoke service of the St. Regis brand, will make this property an extremely attractive choice for the world’s most discerning travelers,” said Ross Klein, President, Luxury Brand Group. “Offering premium hotel accommodations and luxurious residences, The St. Regis Hotel & Residences, Jakarta will be a welcome addition to the city’s booming financial district, helping meet the surge in demand from multinational corporations as well as Jakarta’s growing numbers of tourist arrivals.”

Facilities at the St. Regis Hotel & Residences, Jakarta will include more than 5,000 square feet of meeting space, an all day dining restaurant, a specialty restaurant, a health club, swimming pool, business center, and a Remède Spa occupying over 8,500 square feet. In addition, owners will enjoy access to all of the signature services and amenities offered at the hotel.

“We at PT Duta Anggada Realty are very proud to partner with Starwood on this project, as we feel the St. Regis brand’s elevated status and refined nature reflects where we are headed as an investment property owner and property developer,” said Hartadi Angkosubroto, Chairman of PT Duta Anggada Tbk. “The St Regis name is synonymous with grace, taste, style and elegance and its unparalleled service will be matched by a property that will set the new benchmark in luxury living.”

Following in the tradition of the legendary St. Regis New York, The St. Regis Hotel & Residences, Jakarta will feature the famed hallmarks of St. Regis hotels – butler service and luxury accommodations for worldly travelers. The renowned St. Regis Butler Service offers unparalleled round-the-clock personal attention to every guest. Trained in the English tradition, the butlers provide ever-present yet unobtrusive service while anticipating guest needs and customizing each guest's stay according to his or her specific tastes and preferences.

About St. Regis Hotels & Resorts

St. Regis Hotels & Resorts includes the most celebrated properties in the world. Founded by John Jacob Astor with landmark St. Regis Hotel, New York over a century ago, the company will unveil highly anticipated St. Regis properties in Fort Lauderdale (2007), Mexico City (2008), Punta Mita, Singapore (2007), Mexico (2008), Bali (2008), Anguilla (2008), Costa Rica (2008), Atlanta (2009), Bahía Beach, Puerto Rico (2009), Deer Valley (2009), Macau (2009), Bal Harbour, FL (2010), Lhasa, Tibet (2010), Baha Mar (2011) and that will further enhance the brand's legacy. Personalized service and amenities, enviable locations and luxuriously localized design are recognized worldwide as hallmarks of the St. Regis experience. For more information on St. Regis Hotels & Resorts, please visit www.stregis.com.

About Starwood Hotels & Resorts Worldwide, Inc.

Starwood Hotels & Resorts Worldwide, Inc.® is one of the leading hotel and leisure companies in the world with approximately 850 properties in more than 95 countries and 145,000 employees at its owned and managed properties. Starwood® Hotels is a fully integrated owner, operator and franchisor of hotels and resorts with the following internationally renowned brands: St. Regis®, The Luxury Collection®, Sheraton®, Westin®, Four Points®, W®, Le Méridien® and the recently announced AloftSM and ElementSM Hotels. Starwood Hotels also owns Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality vacation interval ownership resorts. For more information, please visit www.starwoodhotels.com

About PT. Duta Anggada Realty Tbk

PT. Duta Anggada Realty Tbk has been renowned as a reputable developer for the past 30 years in the Indonesian Market. Prime locations, quality construction and innovative architecture have characterized each and every PT. Duta Anggada Realty Tbk property venture and have earned the company high standing in the property investment and development fields.

PT. Duta Anggada Realty Tbk’s strategy of prudent expansion for the sake of long-term value continues to fuel the company’s prosperity while contributing strength, to its foundation of established excellence.

KM Properties launches hotels division

KM Properties, the real estate development division of KM Holding, is to launch a dedicated hospitality and leisure management division, Tamani Hotels & Resorts, at Arabian Travel Market (ATM).

AME Info

The announcement follows in the wake of the group's launch last year of a US $2.3 billion Islamic-compliant real estate fund. The fund has been established to develop and own an international chain of hotels, and other real estate assets encompassing residential, commercial and retail components, that abide by Islamic principles. It also spread investment across various complementary commercial real estate assets worldwide.

'The Islamic-based business model and product proposition which has been created as a result of extensive studies carried out by KM Holding, and supported by retained industry respected professional showed that 'value could be added without necessarily opting to selling alcohol',' said Khulood Al Rostamani, Co-founder and Group Director of KM Holding. The business model addresses the issue of loss revenue from alcohol and replacing it with alternative revenue generating streams.

'We are offering the Tamani brand to owners and developers of exclusive and prime real estate assets, unique resorts, including palaces with our product offer called 'Tamani Exclusive' where we will manage exclusively premium properties located in prime locations.'

KM Properties has six hotel projects currently under development in Dubai, totalling more than 2,500 rooms, all of which will be operated by the Tamani Hotels & Resorts brand.

'Our vision is to develop a group of upmarket hotels. We will develop in high-class residential destinations. We will have a strong focus on quality, from bed sheets and towels to European-style furniture. There will be a great attention to detail,' said Alain Guernier, CEO, Tamani Hotels & Resorts.

'It is our aim to have 8-12 hotels in operation within the next three years. We want a limited number of properties and want to develop them well. We want to grow in a smart way,' he added.

The Tamani Hotels & Resorts portfolio will include 3, 4 and 5 star properties, located in the Middle East, North Africa and Asia. The UAE, Saudi Arabia, India, Malaysia and Indonesia have already been identified as potential destinations.

Adhering to Islamic principals, Tamani Hotels & Resorts will be alcohol free, serve halal food and will donate a percentage of profits to recognized charities.

'Tamani Hospitality & Leisure combines Islamic and wholesome values with passion for creativity, innovation and excellence to deliver globally recognised and respective hospitality and leisure brands,' Guernier said.

Tamani Hotels & Resorts will cater to both business and leisure travellers. Cutting-edge design, personalised service and state-of-the-art technology will define each property. The brand will also operate according to eco-friendly guidelines.

'We will offer the highest quality components and latest technology in all rooms to heighten the hotel experience for every guest in every property, regardless of the hotel tier or ranking,' explained Guernier.

KM Properties will unveil its new hospitality division, Tamani Hospitality & Leisure, at a press conference to be held on the first day of Arabian Travel Market. The press conference will take place at 3pm on May 1 at the KM Properties stand in Hall C of the Dubai International Convention and Exhibition Centre (DICEC).

Emaar plans Indonesia leisure project

ArabianBusiness.com

by Reuters on Wednesday, 25 April 2007

Emaar Properties, the largest Arab property developer by market value, said on Wednesday it plans to develop a multi-billion dollar leisure and residential project in Indonesia.

The project on the island of Lombok will be Emaar's last in a new country for some time as the part Dubai-government owned company focuses on its existing $100 billion of projects in the United Arab Emirates, Pakistan and 13 other countries, a spokesman for the company said.

Emaar, which bought US homebuilder John Laing Homes in June for $1.05 billion, also plans to expand in the US through acquisitions, Alabbar also told the newspaper.

The company is also expanding outside Dubai with projects in Egypt and India.

"The last country I want to do is Indonesia," Alabbar was quoted as saying.

Emaar and its joint venture partner, the Indonesian government, could agree on the Lombok project as early as next month, Alabbar said.

The company also wants to expand its US operations into Arizona, Florida and Washington, Alabbar said.

"The time is right for acquisitions in the US. With the market slowing we might find some value there," he was quoted saying.

Emaar reported its slowest rate of profit growth in the first-quarter in at least two years as the US housing market cooled.

The Egyptian government is talking with Emaar about a large leisure development project on the Mediterranean coast, Egypt's tourism minister told Reuters earlier this month.

Emaar will also expand in Dubai, the source of 90% of its revenues, when it receives fresh land from the Dubai government under a deal giving government-owned Dubai Holding $7.6 billion of stock in exchange for land.

S Korean investor ready to develop biofuel industry in NTT

Kupang, NTT (ANTARA News) - A South Korean investor based in Joellanam-Do province is ready to invest US$100 million in biodiesel oil and biofuel production projects in different parts of Indonesia, including East Nusatenggara (NTT), a provincial official said.

"The South Korean investor, in partnership with Jakarta-based PT Tata Harapan Cemerlang (THC), is currently setting up a project to make biodiesel and biofuel from jatropha curcas plants in West Sulawesi and eying opportunities to do the same in Sumba Island in NTT," Ubaldus Gogi, spokesman of the East Nusatenggara provincial administration said here Wednesday.

The $100 million was meant as an initial investment to finance planting and harvesting of jatropha curcas on 30.000 to 50.000 hectares of land.

The two firms would also utilize jatropha curcas in Sumba Island in the making of biodiesel oil and biofuel, he said.

The plan to develop an alternative energy industry in Sumba Island was conveyed by THC president director SA Habibie in a letter to NTT Governor Piet Tallo last April 17.

The PT THC management said it had been cooperating with the South Korean investor since February 4, 2002.

The cooperation initially covered the setting up of long- distance learning classrooms at 18 Indonesian universities and in the production of fresh corn-based cattle feed for export to South Korea.

After the cooperation in the two areas proved successful, the South Korean investor got interested in developing an integrated plantation, including jatropha curcas for biodiesel and biofuel oil production, in West Sulawesi and NTT, Gogi said.

Pertamina EP signs gas sales deal with Pupuk Sriwijaya, others

Jakarta (ANTARA News) - State oil-and-gas firm PT Pertamina's unit, Pertamina EP, has signed a gas sales deal with four buyers -- PT Pupuk Sriwijaya, PT Titis Sampurna, PT Pertiwi Nusantara and PT Energi Kompresindo.

Under the agreement signed today, Pertamina EP will supply 325.03 trln British thermal units (tbtu) of gas for five years to Pupuk Sriwijaya; 2.19 tbtu to Titis Samurna for three years; 0.87 tbtu for three years to Pertiwi Nusanatara Resources and 0.7 tbtu to Energi Kompresindo, also for three years.

Separately, Pertamina said it signed an agreement today with Chevron Indonesia to purchase 65 tbtu of gas from the latter's Seturian gas field over six years.

The gas will be supplied to Pertamina's Balikpapan gas refinery, the company was quoted by XFN Asia as saying.

Government allocates Rp9 trln to renew old railway tracks

Yogyakarta (ANTARA News) - The government has allocated Rp9 trillion to renew worn-out railway tracks, Transportation Minister Hatta Rajasa said here Thursday.

"The government will repair old railway tracks, rails and railway bridge," he said after attending a meeting of Indonesia?s second largest Islamic movement the Muhammadiyah.

Most of wooden rails were no longer in good condition as they were set up in Dutch colonialism, he said.

The minister attributed railway accidents in many factors.

"Heavy downpour and landslide were the cause of derailment of carriages of Serayu train in Garut district in West Java last week," he said.

Yet other railway accidents were mostly triggered by worn-out railway tracks and rails, Hatta said.

Renewing railway tracks, rails and railway bridge will take time as damage has been found in many railway tracks, he said.

"Railway bridges which were made during Dutch colonialism will not be removed but renewed," he said.

Hatta was one of some ministers who observed the Muhammadiyah meeting.

Papua offers 1 mln hectares of land for oil palm plantation

Jakarta (ANTARA News/Asia Pulse) - The provincial administration of Papua said it will make available 1 million hectares of land for oil palm plantations. The Sinar Mas Group, the Medco Group and an investor from Malaysia, Federal Land Development Authority (Felda), have indicated interest in building oil palm plantations in the province.

"We have given approval for land clearing covering 1 million hectares of hereditary lands as requested by investors," Papua Governor Barnabas Saebu said.

He added that Papua could provide up to 4 million hectares for them in 10 years if they need expansion.

Lippo Group sells NTS stakes to Maxis

Jakarta (ANTARA News) - Maxis Communications Bhd of Malaysia has increased its stake in cellular phone operator firm PT Natrindo Telepon Selular (NTS) to 95 percent by buying 44 percent of Lippo Group`s shares in NTS, an NTS spokesperson said.

NTS head of corporate communications Anita Avianty confirmed here Wednesday Maxis`s acquisition of the shares of Lippo Group which had a majority stake in NTS.

But Anita did not give further details on the acquisition.

Celularnews.com on Tuesday reported the selling of 44 percent of Lippo Group`s stake worth US$123.9 million in NTS to Kuala Lumpur-based Maxis.

Meanwhile, Communication and Information Minister Sofyan Djalil said NTS had informed his office of the sale.

The Maxis`s dominant position in NTS would not be a problem, the minister said. "Clauses in Government Regulation No.20/1994 allow a foreign firm to control up to 95 percent of a domestic telecommunication company," he said after the launch of e-Indonesia Initiative Forum here Wednesday.

Lippo Group sold its stake in NTS to Maxis after it failed to develop telecommunication infrastructure although the cellular phone operator had obtained an operation license three years ago, he said.

Maxis had said it would invest $500 million in the next one year to set up a telecommunication network as stipulated by the Indonesian government.

NTS has so far provided people in East Java with 12,000 cellular phone lines.

A Barclays-ABN AMRO deal would cause pain in U.S. and Europe

By Heather Timmons

Published: April 24, 2007, The International Herald Tribune

NEW DELHI: The planned €67 billion takeover of ABN AMRO by Barclays may result in job losses in Europe and the United States, but the combined British-Dutch bank has big growth plans in Asia, the president of Barclays said Tuesday.

The two banks plan to expand in Asia even as they move or eliminate more than 23,000 jobs, many in Europe and the United States, while selling LaSalle Bank, based in Chicago, to Bank of America for $21 billion.

Thousands of jobs are expected to be moved to India. Asia is the "most important area of growth" for the Barclays investment bank, Bob Diamond, Barclays president, said during an interview by telephone.

The fit between the Asian operations of the two banks was a principal reason for the deal, he added.

Read More ....

Reconstruction agency boasts mid-term success

Alvin Darlanika Soedarjo, The Jakarta Post, Jakarta

The Aceh-Nias Rehabilitation and Reconstruction Agency (BRR) says it's on track to meet its four year target for public housing, education and agriculture redevelopment.

The agency also says it's used just under half its total budget of Rp 21 trillion (US$2.3 billion).

It was allocated Rp 2.4 trillion in 2005 and Rp 7.4 trillion in 2006.

In 2007, the budget was set at Rp 9.99 trillion.

BRR estimated reconstruction works would cost $6.1 billion, while the central government, international donors and NGOs have committed some $7.1 billion.

"We have received funds from the central government, donor countries and NGOs," said BRR chief Kuntoro Mangkusubroto.

The central government established BRR in April 2005 following the 2004 tsunami that destroyed Aceh, and the 2005 earthquake in Nias.

"We have built about 65,000 houses from a targeted 120,000 in Aceh, and 782 schools from a target of 2,006," Kuntoro said.

In the agriculture sector, BRR has rehabilitated 85 percent of Aceh's rice fields.

"This is important because the Acehnese people and their economy are very dependent on rice cultivation."

BRR reported its midterm evaluation Tuesday to stakeholders during the third coordination forum for Aceh and Nias.

Kuntoro noted the agency had exceeded its target of building 127 health facilities because, with the assistance of the UK and Spain, a total of 359 facilities had been built.

More than 17,000 teachers have been trained by BRR to replace the 2,500 who perished in the disasters and the agency has built 1,555 kilometers of new road from a targeted 3,471 kilometers.

But inadequate administration has slowed down land certification. "We have issued certificates for only 23,000 out of 160,000 parcels of land the agency has measured," Kuntro said.

Despite its claims to success, the agency has been criticized for its patchy reconstruction and for graft inside the projects.

"We all want the projects to be free from corruption.

"However, we cannot deny we found several contractors who abandoned their jobs but we hope this will end," he told reporters.

Kuntoro said the next two years would see the agency continue to develop the region's infrastructure, housing and agriculture sectors.

Other challenges for BRR in the future will include the provision of micro-finance training to help strengthen local business.

"Another aspect we are concerned about is the transition of administrative duties when our mandate is over -- Aceh will need to manage all administration themselves."

Aceh is the fourth poorest province in the country with 48 percent of its residents living below the poverty line.

Nanggroe Aceh Darussalam Deputy Governor Muhammad Nazar said the provincial administration would have enough personnel to cope with the work when the projects were handed over.

"BRR has done its job well," Muhammad said.

"They have been serious in rehabilitating and reconstructing both the tsunami-stricken and other areas."

The Office of the United Nations Recovery Coordinator for Aceh and Nias (UNORC), and its officer in charge of the project, Satya Tripathi, said BRR's strength was in its willingness to listen to the Acehneese and Nias people.

At the meeting, the agency also discussed several issues for the future, including gender equality, mainstreaming waste and water management, and developing an exit strategy for the project.

Agis sets sights on 3 acquisitions

The Jakarta Post, Jakarta

Publicly listed electronics retailer PT Artha Graha Investama Sentral Tbk. (Agis) is set to acquire 97 percent stakes in three companies -- PT Akira Indonesia, PT TT Indonesia, and Electronic Solution -- to support its business expansion plans.

"With these acquisitions, we are aiming to become the biggest distributor and retailer of consumer electronics goods in Indonesia," Agis president director Johnny Wijaya said here Monday.

He said that the acquisitions, which would be completed by the end of July, would give his company control of between 30 and 40 percent of the country's electronics retail market, compared with 10 percent at present.

The company is also aiming to triple its revenues to more than Rp 1 trillion (about US$109.8 million) this year, he said.

Last year, Agis sales revenue decreased by 10.7 percent to Rp 342 billion from Rp 383 billion in 2005. Although the company's operating losses soared to Rp 20.9 billion from Rp 1.2 billion previously, it nevertheless booked a net profit of Rp 10.7 billion, compared with a net loss of about Rp 2 billion in 2005, thanks to other income of about Rp 22.04 billion and income tax gains of about Rp 9.8 billion.

TT Indonesia is an electronics distributor, while Akira Indonesia is a manufacturer of home appliances and electronic goods. Taken together, the two companies earned total revenue of more than Rp 800 billion last year.

Agis currently boasts 20 outlets and 25 service centers around the country. After acquiring retailer Electronic Solution, Agis will have more than 50,000 square meters of retail space and 40 service centers.

It will also become the biggest electronics distributor in the country, with between 600 and 700 dealerships.

Besides the three acquisitions, Agis also announced a collaborative venture with multimedia content provider M2B Asia Pacific Corp. to establish a joint content provider under the name Agis Asia Multimedia International.

It is hoped that the joint-venture company will become the country's leading online games provider and the first internet protocol-based television provider in Indonesia.

M2B Asia Pacific Corp. is a subsidiary of Amaru Inc., which is listed on the Nasdaq.

Johnny said that M2B had also bought about 4 percent of Agis's 1.8 billion shares at Rp 1,300 per share.

Apexindo wins $2.13 million contract for drilling services

Jakarta (ANTARA News) - Indonesia`s oil and gas drilling service company PT Apexindo Pratama Duta Tbk said on Wednesday it has won a US$2.133 million contract from Virginia Indonesia Co. LLC. for drilling rig services.

The two companies signed a letter to proceed (LTP) on April 20, Apexindo Director Agustinus B Lomboan said in a report to the Jakarta Stock Exchange.

Under the six-month contract, Apexindo will provide drilling rig services in the Mutiara field, East Kalimantan.

Hutchison plans 1 billion USD investment in Indonesia

Xinhua / People Daily Online - 2007-04-24 09:46:54

Jakarta, April 23, 2007 (Xinhua) - Hong Kong-based telecommunication firm Hutchison plans a total investment of 1.1 billion U.S. dollars to expand cellular phone service network in Indonesia, where the company made debut on March 31, local press said Monday.

Hutchison Telecommunication International operates in Indonesia in a partnership with Thai cattle feed factory Charoen Pokphan and already invested 450 million dollars to run service in 60 towns on Java island and launch the "3" cellular service brand, reported leading economic daily Bisnis Indonesia.

The company will add a new investment of 650 million to build base transceiver stations and expand coverage area in the country's most crowded island.

Hutchison president Rajiv Sawhney, when visiting the Central Java capital of Semarang over the weekend, said the company also aimed at other major islands like Bali, Sumatra, Batam, Sulawesi and Kalimantan.

Guv vows progress on city projects

The Jakarta Post

JAKARTA: Governor Sutiyoso has said he will focus on achieving progress on key infrastructure projects in the final months before his term expires in October.

"I will do my best to make way for the construction of big projects such as the East Flood Canal, the monorail, the Mass Rapid Transportation system (MRT) and low-cost apartment buildings," Sutiyoso told reporters in City Hall Monday.

He said that most of the projects had started so he hoped that his successor would be able to complete them.

For the monorail, he said he hoped there would not be any future problems with the its construction, since the government had issued a letter to guarantee any operation shortfalls for the project.

He said he hoped construction of the MRT would run smoothly after the government received a letter of guarantee from Japan.

Last year, Japan signed an engineering assistance agreement with the central government to develop the MRT and gave a one billion yen loan for the project.

When asked about infrastructure projects that have not yet been finished, Sutiyoso said he talked to several potential investors during his trip to the Middle East last week.

"I met with the president director of Islamic Development Bank (IDB) in Jeddah, Saudi Arabia, and he showed his interest in the deep tunnel project," he said.

The city administration is planning to build a deep tunnel reservoir system that will run 17 km along the West Flood Canal. --JP

Dutch involved in Kota renewal

The Jakarta Post

JAKARTA: The city administration will bring in experts from the Netherlands to run the Old Town revitalization program, since most of the buildings in the area are European designs, Deputy Governor Fauzi Bowo said Monday.

"We've had a good relationship with the experts from the Netherlands so we can invite them to share what's best for the program," Fauzi told reporters after receiving guests from the Dutch Royal Institute of Civil Engineers in City Hall.

"We mostly talked about the Old Town revitalization program. The entourage visited the area yesterday and we have reached the common opinion that the revitalization program can first be initiated by removing all public transportation routes from the area. We'll make the Old Town area a tourist destination," Fauzi said, as quoted by the official city website BeritaJakarta.

The administration's development assistant Nurfakih Wirawan said he welcomed the initiative to involve experts from the Netherlands in the ongoing revitalization program, which began last year.

"I think it's a must to involve the Dutch experts because they can help us move toward the a new but original look for the Old Town," he said. --JP

Tolitoli to get grant from Australia

Tolitoli, C Sulawesi (ANTARA News) - The Tolitoli district administration in Indonesia's Central Sulawesi will get another grant from the Australian government to finance the construction of two more junior high schools.

"Two consultants from the Australian government have observed the location for the construction of the schools," head of the local education office Sartono Djuhran said on Monday.

The grant would be the second of its kind from the Australian government since 2006, he said.

He said the schools would be built in Mimbala village, Dampal Selatan sub district.

He added the Australian government was expected to realize the grant in 2008.

Second Rig Tendered for Begara-II

Continental Energy Corp / Rigzone - 2007-04-23 09:13

Jakarta, 4/20/2007 (rigzone) - Continental Energy Corp. said that its 18% owned Indonesian subsidiary, Continental-GeoPetro (Bengara-II) Ltd. (CGB2) has called for tenders to provide a second drilling rig to drill the third and fourth wells of the four planned wildcat exploration wells for this year on the Bengara-II PSC, onshore East Kalimantan. Bid submission closes on May 18, and CGB2 expects to award the drilling contract shortly thereafter.

The Company's Exploration Manager in Jakarta, Drew Eriksson, said of the tender: "We have an ambitious exploration drilling campaign planned for 2007 and we need the second rig to ensure we meet our objective of completing 4 new exploration wells this year. We have experienced more delays than originally expected due to difficulties with construction of access roads, and in particular bridges, in the swampy jungle of the Bengara-II Block."

"The second rig is a smaller, lighter and more compact unit than the first rig we deployed and that fact should facilitate rig movement and mobilization. It cannot drill as deep as the first rig but it is sufficient to drill 2 of our 4 planned 2007 wildcats and it will of course give us the capability to speed up the program and drill two wells at the same time."

"The first rig is set to drill our first well, the Seberaba-1, to a programmed total depth of 4,000 meters (13,120 feet). That rig is now on location and rigging up and we still anticipate a spud before the end of April. The Seberaba-1 will take 75 to 90 days to drill and test. After that, the rig will be moved to drill our Punga-1 prospect to 3,800 meters (12,467 feet)."

"We would expect the second rig to be on location in July to spud the first of two other wildcats, planned for our Apung-1 and Bekawas-1 prospects, each programmed to a total depth of about 2,100 meters (6,900 feet)."

Continental Energy Corporation is a small oil and gas exploration company, focused entirely on making a major oil or gas discovery in Indonesia.

Indonesia, Rio Tinto make progress in mine talks

Reuters / Yahoo Finance - 2007-04-23 09:24:39

JAKARTA, April 20, 2007 (Reuters) - The Indonesian unit of mining firm Rio Tinto Ltd/Plc said on Friday it had made progress in talks with Jakarta on a $2 billion nickel project on the island of Sulawesi.

"We have made some progress, but there are still some minor issues that need further discussion with the Indonesian government related with forestry and taxation issues," Budi irianto, Rio Tinto's Indonesia spokesman, said by telephone. He did not elaborate.

He said he hoped the issues could be resolved soon so that construction of the nickel mines and high pressure acid-leaching (HPAL) plant could begin.

Irianto said the nickel mining site, which is located on the border of Central Sulawesi and Southeast Sulawesi provinces, was estimated to have a capacity to produce 46,000 tonnes of low concentrate nickel ore a year.

The Wall Street Journal reported on Friday that two key obstacles holding back the project had been resolved and put the value of the project at $1 billion.

The head of Indonesia's investment agency, who in February said the country hoped to a sign a contract around the middle of March, at that time valued the project at around $2 billion.

The Journal quoted Energy Minister Purnomo Yusgiantoro as saying the two sticking points -- taxation and compensation Rio Tinto should pay Indonesia's forestry ministry had been resolved, though some "fine tuning" was still required.

The project also will need approval from Indonesia's parliament.

Indonesia's forestry laws ban open pit mining in protected forests, and mining investors need a licence from the forestry ministry to clear land for projects.

Indonesia's government and parliament have been discussing a draft of a new mining law in a bid to clear up uncertainty in one of the country's most vital sectors. The new mining law is expected to be approved by parliament in March.

Rio Tinto is one of several major global mining players in resource-rich Indonesia, which has been struggling to attract foreign investment in the mining sector.

Top miners such as Newmont Mining Corp. , Freeport-McMoRan Copper & Gold Inc. and PT International Nickel Indonesia have operations in Southeast Asia's biggest economy.

Indonesia mines around 150,000 tonnes of nickel annually, about 10 percent of global production

Japan Daihatsu mulls increasing Indonesia capacity

Reuters / Yahoo Finance - 2007-04-20 10:46

JAKARTA, April 19, 2007 (Reuters) - Japanese minivehicle and small car maker Daihatsu Motor Co. is considering increasing its capacity in Indonesia to meet growing demand, a company official said.

Daihatsu has thee capacity to produce around 9,600 units per month, but has had to increase shifts and working hours to boost monthly output to 13,000 units to meet strong demand.

Daihatsu has introduced a number of fuel-efficient models in Indonesia such as the Xenia mini van and Terios small SUV, which have become increasingly popular since a big fuel price hike in October 2005.

"Currently, we are still able to meet the demand, but if in the future we see more demand we will match this additional demand," Shigeharu Toda, general manager for the Asia division of Daihatsu, told Reuters.

He did not provide more details.

Last year, a company executive who declined to be named told Reuters the firm planned to increase capacity in Indonesia to 270,000 units a year by 2010.

Its market share in the world's fourth most populous nation grew to 10.4 percent in 2006 from 9.1 percent a year before.

Indonesia's vehicle sales declined by around 40 percent last year as the sector was hit by high interest rates and crumbling purchasing power following the October 2005 fuel price hike.

Vehicle sales fell to 318,883 units in 2006 from a historic high of 533,910 units in 2005. But some analysts and experts predict volumes may recover to 350,000-400,000 units this year and return to 2005 levels next year.

Pertamina, Russian Lukoil team up in oil exploration

The Jakarta Post

State oil and gas firm Pertamina has reached an agreement with Lukoil Overseas, a subsidiary of Russia's largest oil company, to explore oil and gas in Indonesia and other countries, particularly in the former Soviet Union.

In an MoU signed Wednesday in Moscow, the two companies agreed to work together to exploit mature oil fields and for training purposes.

Pertamina spokesman Toharso said Friday that the two companies would apply enhanced oil recovery technology to extend the lives of aging Indonesian oil fields.

Pertamina and Lukeoil would soon establish a steering committee to prepare for the establishment of joint venture companies to put the cooperation agreement into effect.

Lukoil, the world's second largest oil company, conducts oil and gas exploration and production in many countries, including Iran, Irak, Saudi Arabia, Columbia, Venezuela, Egypt, Uzbekistan, Azerbaijan and Kazakhstan.

The company, which controls around 1.3 percent of global oil reserves, and 2.1 percent of global oil production, dominates the Russian energy sector, with its oil production accounting for 18 percent of Russia's total oil production.

The Russian company also operates refineries in Ukraine, Bulgaria and Romania, with a total capacity of 58.5 million tons per year.

Last year, Pertamina also signed an agreement with Norwegian oil giant Statoil for joint oil and gas exploration in Indonesia. Earlier this month, a joint venture set up by the two companies won the right to develop an oil and gas block at Karama in the Makassar Strait.

Using Statoil technology, the joint venture will invest up to US$75 million on exploration work in the block, which is estimated to hold potential oil reserves of 200 million barrels. (JP/04)