VP-elect off to early start on eastern RI job

Markus Makur, The Jakarta Post, Timika | Tue, 09/29/2009 1:14 PM

Vice-president-elect Boediono, on a whirlwind tour of the often-overlooked eastern part of the country, is looking to explore new development models in the infrastructure sector there.

The former central bank governor spent a few days in Ambon, Maluku, to see infrastructure development projects underway there.

He then flew to Papua to assess development projects being carried out by the provincial administration there and to be further studied, analyzed and implemented in the future.

On Monday, Boediono transited at Moses Kilangin Airport in Timika to observe airport facilities and meet with regency administration officials.

He was met by Papua Governor Barnabas Suebu, Mimika Deputy Regent Abdul Muis, local high-ranking officials, legislators and top police and military brass.

After jetting in from Ambon, Boediono and his entourage were given a tour of facilities at the airport before meeting with the local officials.

Deputy Regent Muis complained to Boediono of the airport's shortage of aviation fuel provided by PT Freeport Indonesia, meaning only planes operated by Garuda, Merpati and Freeport could serve the airport.

"The airport faces supply shortages of aviation fuel, so flights to Timika are very scarce," he said.

He added the administration planned to build a waiting hall at the airport, as well as other infrastructure development plans, for which it sought government funding.

"The Mimika administration hopes the central government will promptly respond to the problems we face," he said.

Security for the Papua leg of Boediono's journey is provided by the Indonesian Military (TNI) and National Police, with 300 personnel from the Sorong Military Command on alert around the airport.

Command chief Col. Fransen Siahaan said Boediono would pay a two-day visit to Wamena regency in the central mountainous region.

Boediono will also visit Boven Digul and Merauke regencies, before returning to Timika on his way back to Jakarta.

Siahaan said Boediono's visit to Papua was mainly to evaluate development, especially in the transportation sector.

The Transportation Ministry's director general for air transportation, Herry Bekti, and several experts from the field are part of the vice-president-elect's entourage.

Puncak Jaya Regent Lukas Enembe said Boediono's visit to Papua, particularly to the central mountainous region, was an important moment for him to observe several development projects.

"*Boediono* transited in Timika because Timika will serve as the major access point to the central mountainous region in the future," Lukas said.

"A port will also be built in Timika to connect a number of areas in that region."

Bridges are planned for construction in Juguru and Apema villages, as part of the 140-kilometer highway to Wamena.

The planned 500-kilometer road from Jayapura to Wamena, proposed in 1980, has yet to see the light of day, while the road from Wamena to Apema village has already been built.

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Indonesia, China sign MoUs on infrastructure project cooperation

Antara, Monday, September 28, 2009 11:57 WIB

Jakarta (ANTARA News) - Indonesia and China have agreed to step up cooperation in infrastructure and water resource development as marked by the signing of two memorandums of understanding (MoUs).

The MoUs were signed by Djoko Kirmanto, Indonesian Public Works Minister, Li Shenglin and Chen Lei, respectively of the Chinese transportation ministry, and irrigation ministry, in Beijing recently.

The MoU on road and bridge infrastructure construction was signed on September 25, 2009, and the MoU on water resource cooperation on September 26, 2009, both in Beijing, according to Indonesian Ambassador to China Sudrajat in a press statement received by ANTARA News here on Sunday.

The road and bridge infrastructure projects would be constructed with the support of a preferential buyers credit facility of the Chinese government, the ambassador said.

The projects will include the Musi III bridge in South Sumatra, Tayan bridge in Kalimantan, Kendari bridge in Southeast Sulawesi, Medan-Kualanamu toll road in North Sumatra, and Coleunyi-Sumedang-Dawuan toll road in West Java.

The cooperation in the infrastructure development would also include transfer of technology, such as that in the implementation of the Suramadu (Surabaya-Madura) bridge project in East Java, he said.

The water resource development cooperation will cover a dam project in Aceh, Indonesia`s northern-most province.

The Jambu Aye dam project in Aceh would provide an irrigation for local farmers, in anticipation of floods, and supplying hydro-electricity a power plant in Aceh, according to Ambassador Sudrajat.

Indonesia and China have been working on the construction of a dam in Jatigede, West Java, he said.

The governments of Indonesia and China decided to speed up the construction of Jatigede dam, and begin with building of the Jambu Aye dam in Aceh, the ambassador said.

WiMAX may send Internet rates plunging

The Jakarta Post, Jakarta | Mon, 09/28/2009 1:11 PM

The Indonesian Internet Service Provider Association (APJII) predicts the country's Internet tariffs may drop by between 40 percent and 50 percent after WiMAX (Worldwide Interoperability for Microwave Access) tech-nology is introduced to the market next year.

APJII supervisory council member Sapto Anggoro told The Jakarta Post on Sunday that Inter-net tariffs would drop because of improved services by Internet service providers, compared to the number of potential users in the country.

The Ministry of Communications and Information spokesman Gatot S. Dewa Broto shares similar views on the likely fall in national tariffs, saying that WiMAX will provide better data access, and increase competitiveness among Internet service providers.

WiMAX technology, expected to be operational early next year, is an advanced telecommunications technology providing wireless transmission of data using portable and fully mobile Internet access.

It provides high-throughput broadband connections over long distances without having to build costly infrastructure and large numbers of transmission towers.

The technology, which provides an alternative to cable and Digital Subscriber Lines (DSL), can cover up to 50 kilometers in radius from each base station, and has relatively low-investment costs compared to existing 3G technologies.

Sapto said the current technology with lower frequencies than WiMAX, like 3G, resulted in services mostly tagged at about Rp 150,000 (US$15) per month, while non-3G-Internet services, like Speedy from Telkomsel, provided a cheaper subscription tariff at Rp 75,000 for a maximum 15 hours per month.

APJII data says there are 25 million Internet users in the country out of a population of 240 million.

Sapto said the eight winners of the WiMAX tender, announced on July 31, were expected to provide competitive tariffs compared to the current Internet subscription prices.

"WiMAX will be one of the best alternatives to existing internet access," he said, adding that the bidding prices set for the WiMAX tender would influence consumer tariffs.

PT Indosat Mega Media, who won the tender for the West Java zone, also acknowledged that it would charge tariffs based on its bidding price. Indosat won the West Java zone, tendering at Rp 18.4 billion.

"We are going to discuss further about ranges of tariffs with other winners to provide our customers with competitive pricing," said Indosat marketing director Guntur S. Siboro.

Gatot said the government set the bidding prices based on ranges of strategic rates for the WiMAX target market zones. Banten and Jakarta's consumer tariffs would be the highest, as their bidding prices were the highest compared to other zones, he said.

PT Telekomunikasi Indonesia (PT Telkom), one of the winners of the WiMAX tender, said Maluku was expected to have the lowest consumer tariff due to the lowest level of bidding prices.

The Indonesian Telecom-munication Regulator Agency (BRTI) member Heru Sutadi said WiMAX would serve as an alternative option to existing Inter-net services and help to provide more affordable data services, whilst also providing wider network availability.

Jakarta to have a new batik museum

Hasyim Widhiarto, The Jakarta Post, Jakarta | Mon, 09/28/2009 8:36 PM

Seeking to house its growing batik collection and attract more visitors, the management of the Textile Museum in Central Jakarta is preparing to open a separate batik museum within the existing complex.

“We’re looking to complete the planning [for the new museum] by the end of this year,” museum head Indra Riawan said Monday.

Built in the 19th century as a private French residence, the museum, on Jl. K.S. Tubun, showcases 1,800 items from around the archipelago, most of them batik.

Indra said the museum’s management had planned to renovate the 300-square-meter contemporary-textile gallery to make room for the new batik museum.

He declined to say when the new museum would open, with funding still being sought from the city administration before the start of renovation.

“We have so far secured a commitment from the Indonesian Batik Foundation to put some of their collections in the new museum,” Indra said.

SBY to hold dialogue with 220 US CEOs

Abdul Khalik , The Jakarta Post , Pittsburgh, Pennsylvania, US | Fri, 09/25/2009 3:51 PM

President Susilo Bambang Yudhoyono is slated to attend a business forum held by the Indonesian Chamber of Commerce and Industry (Kadin) in Boston on Saturday, with around 220 CEOs from various American companies confirming their presence.

Kadin chairman Mochammad S. Hidayat said in Pittsburgh on Thursday that SBY would address the business forum, focusing on infrastructure development in the country in the coming five years. “The issue is important as we lag behind in infrastructure development,” Hidayat said.

After the president’s speech, a number of CEOs of prominent companies will speak about business climate in Indonesia. The CEOs in attendance will then hold a dialogue with the president.

“The forum will be interesting, given the enthusiasm expressed by the CEOs,” said Hidayat, who is part of the president’s entourage in the G-20 summit in Pittsburgh.

Nalco to setup smelter plant in Indonesia

Odisha, By our Correspondent, Sat, 19 Sep 2009 18:42:16 GMT

Bhubaneswar ( Orissa ) In a bid to spread its wing in foreign soil the public sector navratna, Nalco will set up a smelter plant in Indonesia. The Govt of Indonesia has approved the foreign investment proposal of the company.

The Nalco is also planning to acquire a coal mine of 200 million tones resever in joint venture for setting up the smelter and power plant.

In view of the abundant reserve of natural gas and availability of cheap electricity in Iran, Nalco has decided to set up a smelter plant in that country. It has prepared a feasibility report and also conducted due diligence.

The public sector alumina major which has posted a a net profit of Rs 1272 cr and an export earning of rs 2085cr in 08-09 , has decided to set up 5 lakh tonne smelter plant and 1250 MW power plant at Brajaraj nagar in Jharsuguda district. The proposal has been conditionally approved by Govt of Orissa.

Similarly it has decided to set up 14 lakh tonne Alumina Refinery in neighbouring Andhra Pradesh. The company has prepared a fesibility report. The centr has accorded propr approval for the mining lease proposals of Andha Pradesh for awarding leas to Nalco.

In the 28th annual general meeting of the company which was held in Bhbubaneswar, it has approved a dividend payout of 50% amounting to rs 322.16 crore.

Speaking in a press conference Nalco has revealed that it has recorded alumina production of 1576500 tonnes during 08-09. Similarly it has reported a highest ever aluminium cast metal production of 361,262 tonnes against 360,457 tonnes in 207-08.

It has also achieved the highest-ever domestic sale of 271274 tonnes of metal,surprising the previous best of 263,494 tonnes in 06-07.

WB offering Indonesia $300 million for clean technology

Adianto P. Simamora, The Jakarta Post, Jakarta | Thu, 09/17/2009 2:32 PM

The World Bank has called on all nations to act on climate change by making a shift to green technologies, a scheme in which Indonesia could gain up to US$300 million in grants or soft loans to fund low-carbon energy projects.

The World Bank (WB) currently manages a $5 billion budget under the Clean Technology Fund (CTF).

"Indonesia could access about $300 million in grants or soft loans from the CTF for cleaner energy, including for geothermal projects and for transportation," Timothy Brown, natural resource management specialist at the World Bank told reporters at the launch of its World Development Report on Tuesday.

"However, the matter is still under discussion with the Indonesian government."

He said the World Bank pledged to provide about $3.6 million in grants for technical assistance to help Indonesia prepare for the reducing emissions from deforestation and forest degradation (REDD) initiative.

Secretary-General of the National Council for Climate Change (DNPI) Agus Purnomo said Indonesia needed between $200 million and $300 million for low-carbon technologies to help climate change.

"The discussion with the World Bank may take place in October," he told The Jakarta Post.

He said Indonesia had set up a road map for clean energy to help mitigate climate change which included exploring geothermal possibilities, but the country was still seeking donors to finance them.

Indonesia has the world's third largest geothermal capacity yet uses coal, deemed the main contributor of greenhouse gas emissions, as its main source of energy.

"Countries must act now, act together and act differently on climate change."

The World Bank said the money for low-carbon energy projects could be used as regular investment funding that could give benefits in the short run in addition to the carbon credits gained from the projects.

Timothy said Indonesia had the potential to gain billions of dollars per year from the forest carbon market in the next twenty to thirty years, once REDD was agreed in 2012.

"But, *the money would come* only if deforestation was reduced," he said. "Indonesia has to take much tougher action in terms of forest governance, such as reducing forest fires or managing the peat lands in order to qualify for the forest carbon market."

Indonesia, the world's third largest forest country with about 120 million hectares of rainforest, said it would gain billions of dollars from protecting the forest under the REDD program.

Climate expert from the Center for International Forestry Research (CIFOR) Daniel Murdiyarso said Indonesia could gain about $15 billion from the REDD mechanism.

The World Development Report 2010 from the World Bank was released Tuesday ahead of the December meeting on climate change in Copenhagen, when negotiators from 189 countries are expected to agree a new climate regime on deeper emission cuts.

The report said rich countries, which produced most of the greenhouse gas emissions of the past, must act to shape the climate in the future.

"If developed countries act now, a *climate-smart' world is feasible, and the cost of getting there will be high, but still manageable," it said.

The World Bank president, Robert B. Zoellick, said the current financial crisis should not be an excuse to put climate on the back burner.

"Countries must act now, act together and act differently on climate change," he said in the statement.

"Developing countries are disproportionately affected by climate change - a crisis that is not of their making and for which they are the least prepared. For that reason, an equitable deal in Copenhagen is vitally important."

World Bank chief economist and senior vice president of development economics Justin Lin said solving the climate problem required the transformation of energy systems toward higher energy efficiency and more low-carbon technologies.

"It is in the interests of developing countries to act now to avoid locking into a high-carbon infrastructure," Justin said.

The report found three majors areas of climate vulnerability in East Asia and the Pacific region including a large number of people living along the coasts and on low-lying islands.

Green activists, including Indonesian Environmental Forum (Walhi), have criticized the government for using the loans to mitigate climate change, saying it was the responsibility of rich nations to cut emissions.

Hotels and villas fully booked for Idul Fitri holidays

Wasti Atmodjo, The Jakarta Post, Denpasar, Bali |Thu, 09/17/2009 10:59 PM

Star hotels and luxury villas are likely to gain profits from the Idul Fitri long weekend as occupancy rates reach more than 90 percent, a hotel executive confirmed.

Djinaldi Gosana, executive director of the Bali Hotel Association (BHA), which overviews 100 members of four and five-star hotels in Bali, said that most clientele would check in this weekend (Sept.18) and spend the rest of the long holidays on the island.

“Most hotels especially those located in Kuta, Legian, Seminyak, Nusa Dua and Jimbaran resorts are already fully booked,” Gosana said.

Bali had just finished a robust holiday season, including national school holidays and summer holidays, which started ran from June to August.

Despite terrorist attacks in Jakarta’s J.W. Marriot and Ritz-Carlton hotels last July, Bali’s tourism industry has remained strong. From January to June this year, more than 1 million foreign tourists spent their holidays on the island.

Aloysius Purwa, chairman of the Association of Travel Agencies (ASITA), said that Bali would again host visitors, mostly domestic guests, during the Idul Fitri holidays.

Expatriate to lead Semen Gresik

The Jakarta Post, Jakarta | Mon, 09/14/2009 8:49 PM

The State Minister for State Enterprises Sofyan Djalil said Monday his office would appoint an expatriate to be the new vice president director of state cement producer PT Semen Gresik.

“The candidate for the Semen Gresik vice president director is not from Semen Gresik. He is an expatriate who has been working in Indonesia for a long time,” Sofyan told reporters.

Sofyan said the name of the nominee was proposed by PT Rajawali Group, but refused to mention the name.

Previously, the Semen Gresik vice president director was Heru Adiningrat before he was appointed as a director for PT Danareksa.

Semen Gresik is scheduled to hold a shareholders meeting tomorrow. (naf)

Indonesia Ornamental Fish Show 2009

The Jakarta Post,

Venue: Jakarta Convention Center - Date: Thu, 10/08/2009 - Sun, 10/11/2009

The Indonesia Ornamental Fish Show 2009 (IOFS), an official exhibition and business from of the Ministry of the Marine and Fishery, is designed to promote the richness and multi-variety of hundreds of Indonesian ornamental fish and aquatic products. As the largest archipelago country in the world, Indonesia has been a leading fish ornamental and aquatic products exporter to all parts of the world.

Besides showcasing ornamental fish and aquatic products, the show is also displaying supporting products and accessories of ornamental fish.

New world-class theme park takes off in Makassar

Andi Hajramurni and Endy M. Bayuni, The Jakarta Post, Makassar | Thu, 09/10/2009 12:59 PM

Residents of South Sulawesi and neighboring provinces in eastern Indonesia will now not need to travel far to enjoy an international-class theme park, they can just head to Makassar.

The Trans Studio, named after the Trans TV network and billed the world's largest indoor theme park, was officially opened Wednesday.

"People need leisure once they've fulfilled their basic tasks," Vice President Jusuf Kalla said at the opening ceremony.

The outgoing Vice President's business group is a part owner of the 2.7-hectare park, along with Jakarta-based media mogul Chairul Tanjung.

Kalla underlined the economic impact of the theme park, which employs 1,000 workers to run the facility.

The Rp 3 trillion (US$300 million) park will eventually have two hotels and a large mall. It already has the largest car park in Indonesia.

The owners expect to get two million visitors each year, drawing not only residents of Makassar, but also visitors from across Indonesia.

Trans Studio boasts 21 different features and rides, including the SpongeBob film in 4-D, and a locally produced musical opera show in its Trans City Theatre.

The theme park is a reflection of the growing affluence of the South Sulawesi community, thanks largely to its huge agriculture industry.

The inauguration was scheduled to take place at 9 a.m. on Sept. 9, 2009 - nine being considered a lucky number by many Indonesians.

The date also marked the 60th birthday of President Susilo Bambang Yudhoyono, who had earlier turned down an invitation to inaugurate the park.

"We wish you a happy birthday, Mr. President," Kalla said in his speech.

Kalla, who has said he plans to return to live in his hometown of Makassar after his term in office ends Oct. 20, joked that he wanted to help run the Trans Studio theme park.

"I asked Pak Chairul if I could be the head of the cleaning service."

Ministry to connect 53,000 villages with Internet next year

The Jakarta Post, Jakarta | Tue, 09/08/2009 10:47 PM

The Information and Communication Ministry has aimed to connect the remaining 53,528 villages across the country with Internet next year.

"All villages should have Internet connections by 2010 at the latest," minister Muhammad Nuh said on Tuesday.

Of the total 72,000 villages in the country, only about 19,000 were connected to Internet so far, kompas.com reported.

The ministry has also planned to build 30 TV transmitters in border areas.

Indonesia expected to produce 200 movies by 2014

China Daily, 2009-09-07 16:43

JAKARTA: The vibrant Indonesian movie industry is highly expected to improve production up to 200 movies by the year of 2014 following significant movie production increase in the industry in the past few years, Indonesian Culture and Tourism Minister Jero Wacik said here on Monday.

"At least 87 movies were produced last year. This year, the movie production would reach 95. Hopefully, the movie production in the country would reach 200 by 2014," Jero was quoted as saying by the Detik.com during his hearing with legislators in the parliament.

The minister said that Indonesia has saw significant film making business growth with extraordinary growing number of filmmaker firms in the last few years.

"My ministry learned that there were only 704 filmmaker firms in 2007. In 2008 they have increased up to 1,072 firms. As of July this year, national firm makers have reached 1,163," he said on the sidelines of the hearing that discussed film making draft law in the parliament.

He guaranteed that after being enacted into law, the filmmaking law will not restrain national filmmaker from creating movies.

After paralyzed for more than a decade, Indonesian movie industry started to improve. Many of Indonesian movies are now played along with western and Hong Kong-made movies in lavish cinemas in the capital city of Jakarta.

Queues of people who wanted to watch Indonesian movies in front of tickets booths were commonly seen in many theaters here in the last few years, a view that can hardly found three or five years ago.

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Indonesia`s Adaro-Shell to build US$40 mln fuel storage facility

Antara, Monday, September 7, 2009 15:40 WIB | Economic & Business

Jakarta (ANTARA News/Asia Pulse) - PT Indonesia Bulk Terminal (IBT) and PT Shell Indonesia have signed an agreement to build a US$40 million fuel facility in South Kalimantan.

IBT, a subsidiary of the country's second largest coal producer PT Adaro Energy, is the operator of a coal terminal in the Laut island off South Kalimantan.

Andre J Mamuaya, president of Adaro Energy, said under the agreement signed on Sept 1, Shell will build the fuel storage facility with a capacity of 60,000 tons near a fuel tank owned by IBT on the island.

Govt prepares Rp 1.4t for post-quake programs

Erwida Maulia , The Jakarta Post , Bogor, West Java | Mon, 09/07/2009 5:32 PM

The government said Monday it would allocate Rp 1.4 trillion (US$140million) for rehabilitation and reconstruction programs after a powerful quake rattled West Java last week.

Coordinating Minister for the People's Welfare Aburizal Bakrie told a press conference in Bogor, West Java, on Monday, that the money would be taken from the 2009 state budget's reserve funds because funds allocated for disaster management had already been used to deal with other catastrophes earlier in the year.

"We will soon verify how many buildings have been destroyed and how much damage has been done. After that we hope we can immediately begin the reconstruction," Aburizal said after a Cabinet meeting with President Susilo Bambang Yudhoyono.

"We estimate that the cost will amount to between Rp 1.4 trillion and Rp 1.5 trillion. We hope the reconstruction will be completed by the end of February 2010," he added.

Aburizal said that the 7.3-magnitude quake, centered off the coast of Tasikmalaya, West Java, had affected 14 towns and regencies, killed 73 people and wounded hundreds of others.

He said the government would manage the reconstruction program similar to how it dealt with the aftermath of a major earthquake that hit Yogyakarta in 2006.

Fugro Indonesia to provide offshore East Kalimantan site survey, positioning services

Offshore staff, Sep 4, 2009

LEIDSCHENDAM, Netherlands -- Chevron Indonesia has awarded Fugro Indonesia a contract to supply site survey and positioning services to support exploration and production facilities offshore East Kalimantan.

The contract starts immediately on a call-out basis and will cover offshore positioning of barges, anchor vessels, and drilling rigs. In addition, Fugro will provide hydrographic and geophysical surveys as required prior to drilling or pipelay operations.

In support of this contract and other regional developments, Fugro has set-up an administration office and technical workshop facility in Balikpapan, Indonesia.

Qatar close to buying Indonesian aircraft

Gulf Times

The deal to buy $250mn CN-235 aircraft from Indonesia will be closed before the end of this fiscal year, Indonesia’s special envoy to the Middle East, Alwy Shihab, has announced.

“HH the Emir himself has ordered the purchase, so it’s only a matter of time,” Shihab said.

Alwy Shihab: ‘Looking for a long-term relationship

The envoy, who met Captain of the Qatar Air Force Ali al-Sulaity yesterday, explained the Qataris were still determining how many they would buy and to what use the 25-passenger aircraft -which can be used for evacuation, surveillance, or just civilian flying- would be put to.

Shihab added that he expected Qatar would be buying “many” of these aircraft.

The CN-235 is a medium-range twin-turbo-prop aircraft developed jointly by CASA (Spain) and IPTN (Indonesia) as a regional airliner and military transporter. The aircraft manufactured in Indonesia are used by the Indonesian air force.

Shihab also met Qatar Holding CEO Ahmed al-Sayyid, who confirmed to him that Qatar Holding Indonesia is “all set to be set up.” The company, controlled 100% by Qataris, will invest in Indonesia’s natural resources, power plants, and oil related activities.

“The Indonesians are preparing proposals for these projects that will be funded entirely by the Qatari side,” Shihab pointed out.

He added that Gulf Petroleum- jointly owned by private Qataris and Bahrainis is entering its final stage of bidding over projects in Indonesia.

Shihab also stated that Indonesia, Brunei and Qatar were entering into a tripartite-real-estate-building agreement; that will involve building resorts and hotels in one of the three countries.

“We are trying to increase the number of Qataris going to Indonesia through ads about shopping and cultural tourism,” he said. “I am sure that when Dubai’s Emar project is finished Bali will become a primary destination.”

The special envoy also took the opportunity to thank Qatar for helping Indonesia overcome the effects of the tsunami and helping it build a sustainable economy.

“When we were hit by the tsunami Qatar was at the forefront of countries extending help,” he said. “We are looking, with the Emir, for a long-term relationship between the two countries.”

Massive Cepu block resumes production

Alfian, The Jakarta Post, Jakarta | Tue, 09/01/2009 9:32 AM

Exxon Mobil Corp. resumed production on Monday at its Cepu plant with output anticipated to increase up to 15,000 barrels of oil a day by September, after the state regulator threatened to revise its contract if it continued to delay output.

The block, which holds the country’s largest untapped reserves, is being managed by Mobil Cepu Ltd (MCL), a subsidiary of US-based oil producer ExxonMobil.

Exxon spokesman Maman Budiman said the block’s Banyu Urip field had begun delivering oil for facilities’ start up and commissioning on Monday afternoon.

“The start-up and commissioning were done to make facilities able to produce more than 5,000 barrels of oil per day [bpd],” he said in a text message.

Upstream oil and gas regulator BPMigas’s chairman R. Priyono said the field would initially produce between 2,000 and 5,000 bpd.

The Banyu Urip field began oil production in limited quantities in December last year, but production was put on hold in April because of incomplete facilities.

Located on the border between East and Central Java, the Cepu block is said to have massive proven reserves of 600 million barrels of oil and 1.7 trillion cubic feet of gas.

MCL and state oil and gas company PT Pertamina each hold a 45 percent participating interest in the block.

A consortium of enterprises controlled by provincial administrations holds the remaining 10 percent participating interest.

For its slow development of the block, MCL’s operatorship has drawn strong criticism from lawmakers and the government, through upstream oil and gas regulator BPMigas, because the block’s production had missed several deadlines with initial output scheduled for 2008.

The government relies heavily on the block to help jack-up its dwindling oil output, and had expected Cepu to begin contributing 20,000 bpd as of September last year.

However, this has yet to be realized. At its peak, the Cepu block could produce about 160,000 barrels of oil per day — about 15 percent of the country’s current total oil production.

Declining oil production has forced Indonesia to become a net oil importer and led the Indonesian government to request its withdrawal from the Organization of Petroleum Exporting Countries (OPEC) last year.

BPMigas joined forces to slam the MCL’s operatorship of the block, threatening to revise the terms of the contract should the company continue to delay production.

After threatening to replace MCL’s management if they failed to meet the output target, BPMigas chairman R. Priyono said the terms and conditions stipulated under the joint of agreement (JOA) between MCL and Pertamina in developing the block were among the worst and needed revision.

“Pertamina’s position in the JOA is very weak. We may have to improve this JOA,” he said, without elaborating.

Oil and gas formed the backbone of Indonesia’s state revenue.

Data from the Energy and Mineral Resources Ministry suggests that last year the sector contributed Rp 304.38 trillion or more than 30 percent of the total state revenue.

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President orders solar energy development

Erwida Maulia, The Jakarta Post, Jakarta | Tue, 09/01/2009 5:33 PM

President Susilo Bambang Yudhoyono has ordered that development into solar-cell energy be explored in Indonesia.

Managing director of state-owned solar cell producer PT LEN Industri, Wahyuddin Bagenda, said following a meeting with SBY in Jakarta on Tuesday that the President supported moves for increasing the production of efficient solar-cell energies.

“... And he [SBY] is hoping that the price will be reasonable for the public. That was the most important issue.” Wahyuddin said in a press conference at the Presidential Office.

He said LEN could install solar cells with a capacity of 6 Megawatts, and could offer this renewable energy at US$3 per watt.

Wahyuddin said this capacity fell short of the government’s actual annual requirement of 10 MW.

“Based on our analysis, if we increase the installed capacity to 50 MW, we’ll be able to sell the solar cells at $1.2 per watt. The global price currently stands at around $1.7 per watt,” he said.

The Bandung-based firm will need around $17 million worth of investment to develop the 50-MW power plant, he said.

Businessman to develop Islamic resorts

Indra Harsaputra and Achmad Faisal, The Jakarta Post, Surabaya | Tue, 09/01/2009 5:45 PM

A Sumenep legislative council member confirmed reports that two islands off Madura had been sold to a businessman who intends to develop them into resorts.

Councilor Badrul Aini said Tuesday that businessman Zainal Seniya bought the islands and had leased them to Canadian and Singaporean investors.

“Both Sitabok and Seradeng islands will be developed into maritime resorts equaling Bunaken [North Sulawesi],” Badrul said.

Local cleric Dailami Abu Hurairah, who is close to the businessman, said the two islands would be Islamic resorts and target Middle East tourists.

“We have been involved in the project and will help operate the maritime resorts, which will follow an Islamic concept,” Dailami said.

He said many Middle East tourists felt uncomfortable with major tourist destinations like Bali, which do not promote Islamic values.

Deputy Sumenep Regent Mochammad Dahlan said the two islands belonged to the state and had not been sold to anyone.

Indonesia Eximbank launched to boost exports

Aditya Suharmoko, The Jakarta Post, Jakarta | Tue, 09/01/2009 2:22 PM

Mahendra Siregar, chairman of Indonesia Eximbank’s board of directors, Finance Minister Sri Mulyani Indrawati and Trade Minister Marie Elka Pangestu talk at the official launch of the Indonesia Eximbank in Jakarta on Tuesday. (JP/R. Berto Wedhatama)

The government has officially launched the Indonesia Eximbank, an agency to help finance exports, particularly by micro-, small- and medium-sized enterprises (MSMEs).

Indonesia Eximbank will boost the number of exporters, which have difficulty securing financing from other financial institutions, Trade Minister Mari Elka Pangestu said Tuesday after the launch ceremony.

"We will identify potential exporters," she said.

Finance Minister Sri Mulyani Indrawati said she expected Indonesia Eximbank to help diversify exports to new destination markets.

The Middle East, Russia, Kazakhstan and Uzbekistan are among the new destination export markets, Mari said.

Indonesia, India to boost tourism cooperation

The Jakarta Post, Jakarta | Mon, 08/31/2009 12:13 PM

Indonesian and Indian tourism officials and private stakeholders met in Yogyakarta last week to discuss how to boost tourism cooperation between the two countries, known for their exotic cultural and natural attractions.

"India has become one of the main targets of Indonesian tourism in the past few years," the Indonesian Culture and Tourism Ministry said in a statement.

Jakarta and New Delhi signed a memorandum of understanding on the matter in the Indian capital in 2000.

The ministry has set up a tourism representative office in New Delhi, held exhibitions and invited Indian journalists to promote Indonesian tourism sites.

It noted the number of Indian tourists rose to 112,267 last year, an increase of 23.73 percent from 90,720 in 2007.

The government is seeking to attract between 150,000 and 160,000 Indian tourists this year, a tough challenge due to the economic downturn and the absence of direct flights between Jakarta and New Delhi.

At the two-day 1st Joint Working Group Meeting on Tourism between Indonesia and India in Yogyakarta from Aug. 27 to 28, 2009, both governments agreed to hold media and tour operator junkets for each country and also exchange information on tourism development.

Indonesia also offered its tourism sites to be used as film sets for Bollywood movies, the ministry said.

The Indonesian delegation was headed by Wardiyatmo, the ministry's secretary-general, while the Indian delegation was headed by Sujit Banerjee, secretary of the Indian Ministry of Tourism.