Yudhoyono Hopes to Impress Foreign Leaders With $280m Bali Convention Center

Jakarta Globe, Made Arya Kencana | January 27, 2011

Plans are underway for the construction of a new $280 million convention center in Bali that will serve as the main venue of the Asia Pacific Economic Cooperation summit to be held on the island in 2013.

The convention center was requested by President Susilo Bambang Yudhoyono as a means of boosting the country’s image on the international stage, Turman Siagian, the head of the planning bureau at the Culture and Tourism Ministry, said on Thursday after an APEC planning meeting.

“The president would like to dedicate the very best to increase Indonesia’s image in the eyes of the international community,” he said.

The annual APEC summit is attended by the heads of state of 21 Pacific Rim countries, and is held to promote free trade and cooperation between member states.

Turman said the Bali International Park will be built on a 54-hectare plot of land in Jimbaran, Badung district.

Aside from seating 10,000 people in its assembly hall and 2,500 more in a secondary hall, the facility will also be equipped with a commerce center, an exhibition space and a cultural center.

Heads of state will stay in 21 residential units within the compound during the summit, according to Frans Bambang Siswanto, commissioner of project developer Jimbaran Hijau.

“The budget projection for the Bali International Park is estimated at $280 million,” he said.

Additional facilities will include a hotel, an international standards medical clinic, and art market and gallery, Frans said.

A tower symbolizing peace will be the focal point of the convention center compound.

The project is slated to begin sometime early this year and is targeted for completion by April 2013 in time for the summit.

“After the APEC summit, Bali International Park is designed to be a comprehensive tourist destination that can serve as an alternative to the other tourist spots in Bali,” Frans said.

When asked why the island needed a new convention center, Turman said the Bali International Convention Center in Nussa Dua was no longer suitable for large-scale events as it had only 5,000 seats and lacked the proper amenities for hosting foreign dignitaries.

Aside from the convention center, other infrastructure is also being built, such as a new toll road that will connect Denpasar and Nusa Dua.

RI-Indian bizmen`s cooperation worth 15.12 billion dollars

Antara News, Tue, January 25 2011

New Delhi (ANTARA News) - Indonesian and Indian businessmen have signed 18 memoranda of understanding (MoUs) on investments and development projects worth 15.12 billion US dollars.

The MoUs were signed following a bilateral business forum attended by President Susilo Bambang Yudhoyono and about 500 Indonesian businessmen at Taj Palace Hotel`s Durbar Hall here Tuesday.

The 18 MoUs included investment in important development projects like railway tracks, airports, power plants, shipyards, information technology, fertilizer plants, metal industries, and special economic zones.

The Indian enterprises that signed the MoUs included India GVK, Tata Power, Reliance, ICVL, Adani Group, Trimex Group, and Pipavav Shipyars.

Their Indonesian partners which signed the MoUs included PT Bukit Asam, PT Pupuk Sriwijaya, PT Angkasa Pura I, PT Multipolar, PT PAL, PT PLN, PT Mega Urip Pesona, and PT Eastern Infrastructure International.

The MoUs also involved the provincial administrations of South Sumatra, Jambi, and East Kalimantan, and the district administrations of Kendal and Buleleng.

According to Head of thee Investment Coordinating Board (BKPM) Gita Wirjawan, the MoUs were fixed and would immediately be implemented because the Indian companies had conducted the relevant surveys in Indonesia.

"All will be followed up with the signing of joint-venture agreements. They have actually worked in the past few months."

"They have even visited the heads of district and governor`s offices, BKPM office, and related ministries. So, this is real and will be realized," Gita Wirjawan said.

The investment cooperation between the two business communities would be implemented in rather neglected areas in which the majority of the MoUs on infrastructure and strategic industry projects were located outside Java, he said.

Gita said that about 60 - 70 percent of total worth of the investment had been pledged by four Indian tycoons, namely Ambani Group, Tata Group, Trimex Group, and GVK Group.

Ambani Group wanted to invest in infrastructure and entertainment, while GVK Group offered infrastructure development projects as building a health center for very poor people.

Then, Trimex Group offered smelter and railway track development projects, while Tata Group was interested in investment in the educational, automotive, and infrastructure sectors.

In response to this investment cooperation, Minister of Industry MS Hidayat said President Yudhoyono had asked Indonesia to build partnership with Indian automotive industries as Tata Group for the manufacture of vehicles that could serve inter-village and inter-district routes outside Java island.

"The President pays special attention to automotive production, particularly passenger/cargo vehicles. We want to talk about this," he said.

One such vehicle was sold Rp60 million in India, he said adding that the Indian automotive industries were also interested in building factories in Indonesia.

President Yudhoyono and First Lady Ani Yudhoyono would be in India from January 24 to 26, 2011. This is his second state visit to the South Asian giant since November 2005.

After India, the Indonesian head of state is scheduled to attend the World Economic Forum`s annual meeting in Davos, Switzerland.

The 2011 World Economic Forum would be held on January 26 - 30. Before going to Davos, President Yudhoyono would first make a state visit to India to attend the country`s national day.

West Sulawesi to build 10,000-ton fuel oil depot

Antara News, Tue, January 25 2011 12:21

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Mamuju, W.Sulawesi (ANTARA News) - The West Sulawesi provincial administration will build a 10,00 ton fuel oil depot at Belang Belang Port in Mamuju district, West Sulawesi, a local official said here Monday.

The fuel oil deport owned by state owned company PT. Pertamina was reported to be built in this year, an information obtained from the provincial administration office said here on Tuesday.

Haeruddin Anas, a spokesman for the administration office, said the local government had actually prepared about two hectares of land for the construction of the depot, the location of which is close to Belang Belang Mamuju port area.

"Pertamina was reported to have agreed with the depot construction and a feasibility study on the location will be conducted in a relatively short time, he said.

According to him, the construction of the depot in West Sulawesi was to be carried out in a bid to the province`s rising demand for in fuel oil which was directly procured from Pertamina depot in Pare-pare, South Sulawesi.

"So far, fuel oil for West Sulawesi is supplied by Pare-pare depot, the distance of which is about 300 kilometers long from Mamuju city.

Hence, the construction of fuel oil depot in West Sulawesi will ease the people in that province in getting fuel oil for their needs. Practically they will no longer be dependent on supply from Pare pare.

As a matter of fact, the construction of fuel oil depot in West Sulawesi aimed to meet rising demand from several industries in Belang Belang Mamuju port and other areas for fuel oil, he said

In addition, a increasing number of vehicles as means of transportation as well as intensive implementation of development program also caused the demand for fuel oil in this new autonomous province to rise.

R-Power to invest $5bn in Indonesia

TNN, Jan 25, 2011, 02.38am IST

MUMBAI: In what is being seen as one of the largest foreign investments in Indonesia, Reliance Power will infuse $5 billion (around Rs 22,000 crore) in two projects-one each in South Sumatra and Jambi provinces. The investment covers coal mining, setting up of railway lines, ports and power projects.

According to a senior company official, who did not wish to be identified, the project in South Sumatra involves development of a 2- billion MT coal mine, a 200-km railway line, a port and a 2,000-MW power project at a cost of $3.5 billion. The project in Jambi involves another coal mining unit, along with a port, railway line and a small power plant. It will cost $1.5 billion without the power project.

Reliance Coal Resources, a subsidiary of Reliance Power, will sign two MoUs with representatives of the governments of both the provinces in New Delhi on Tuesday. Reliance ADA Group chairman Anil Ambani and Indonesian President Susilo Bambang Yudhoyono are exected to be present during the occasion. Fiscal concessions, including land, are being offered to Reliance Power to make it attractive for them to invest in Indonesia, the official said. The investment for the development of the coal mine, rail & port infrastructure and the power project in Sumatra would be made in the next five years.

In 2010, Reliance Power's wholly owned subsidiary Reliance Coal Resources had acquired three coal mines owned by two companies PT Sriwijaya Bintang Tiga Energi and PT Brayan Bintang Tiga Energi in the South Sumatra province. The three mines are spread over 1,25,000 acres and have over 2 billion MT of coal. The Indonesian government is providing the other concessions as Reliance Power would develop the other projects associated with it which include the railway line, port and power.

Coal from these mines will be exported for Reliance Power's Krishnapatnam Ultra Mega Power Project in Andhra Pradesh. which is based on imported coal and also used for its 2000 mw project in Indonesia. These mines would ensure steady supply to the Krishnapatnam Project and also be more economical than other imported coal. Officials said talks are already on with banks to finance the first project in south Sumatra.

Ryaas: Hard to keep Jakarta as capital city

The Jakarta Post, Jakarta | Mon, 01/24/2011

Presidential Advisory Council member Ryaas Rasyid says that Jakarta is becoming more difficult to keep as the capital city and suggests moving the capital somewhere else.

“A capital city does not need mining and other industries. Instead it needs seclusion for the government to work with ease,” Ryaas said during a seminar, titled “The Country’s Capital, Challenges and Hopes” in Makassar, South Sulawesi, on Monday.

Ryaas said that Jakarta had become central to nearly everything, but given its complexities the capital should immediately be moved to another area.

There are two options, according to Ryass, either to move the capital city or the government offices to another province.

“Either somewhere in or off Java. South Sulawesi has been the first to be nominated, and may prompt other provinces to nominate [themselves] as well,” he said, as quoted by tempointeraktif.com.

“We must not be blinded by a concept based on history that Jakarta should be kept as the capital city,” he added.

Perhaps Sukarno decided to locate the central government in Jakarta based on Indonesia’s hard-earned triumph over the Netherlands in the past, Ryass said.

South Sulawesi’s prospects also depend on further examinations of urban planning and other requirements.

The government itself, he said, needs to prepare a preliminary budget both for the country and outside of the country.

Noted businessman Tanri Abeng said that if South Sulawesi wants to nominate itself as the new capital city, it should start promoting multi-cultural perspectives in the city’s life.

Tanri alluded to nagging tensions between different ethnic groups in the city.

“That [anti-multiculturalism] culture needs to be changed. If not, how can we suggest the city to host the capital should its culture fail to accommodate different ethnic groups,” he said.

Related Articles:

Indonesia should learn from Brazil in moving capital city: Observer

President: Relocating the capital city an option

Mitsubishi to Build $2.8 Billion Indonesia LNG Plant

Bloomberg, By Yuji Okada and Go Onomitsu - Jan 24, 2011

Mitsubishi Corp. Japan’s largest trading company, will build a $2.8 billion liquefied-natural gas plant in Indonesia with partners including Korea Gas Corp., the world’s largest LNG buyer, and state-owned oil company PT Pertamina.

The Donggi-Senoro project on Sulawesi island will produce 2 million metric-tons-a-year of LNG and 47,000 barrels-a-day of condensate from 2014, Mitsubishi said today on its website. PT Pertamina and PT Medco Energi Internasional, Indonesia’s biggest listed oil company, own two gas fields that will supply the Donggi-Senoro LNG plant.

“Profit for Mitsubishi from the project will be limited because it doesn’t have equity for the upstream part,” said Yasuhiro Narita, a Tokyo-based analyst at Nomura Securities Co. “But Mitsubishi will gain know-how of plant operation. That will be an important milestone for the company’s future natural resource businesses.”

Japanese trading houses including Mitsubishi are expected to report record profits during the 2012 Japanese financial year because of higher prices for natural resources, Macquarie Group Ltd. said.

Mitsubishi shares rose 2.1 percent to 2,321 yen at 2:13 p.m. in Tokyo, heading for the biggest one-day gain in two weeks. Medco rose 6 percent to 3,100 rupiah as of 9:52 a.m. local time, set for the steepest increase since Dec. 30. Korea Gas added 0.7 percent or 300 won to 44,400 won.

Partners

The joint-venture PT Donngi-Senoro LNG will sign a contract with Japan’s JGC Corp. to build the plant in Central Sulawesi. PT Donngi-Senoro LNG has signed long-term LNG sales agreements with Chubu Electric Power Co. and Kyushu Electric Power Co. and is negotiating with Korea Gas to finalize a deal.

JGC shares rose 2.6 percent, or 50 yen, to 2,028 in Tokyo as of 2:14 p.m.

A special purpose company, in which Mitsubishi and Korea Gas have 75 percent and 25 percent respectively, will hold 59.9 percent of PT Donngi-Senoro LNG. Mitsubishi solely has 51 percent of the joint venture, according to the statement.

PT Pertamina will hold 29 percent, while Medco’s share will fall to 11.1 percent from 20 percent as Mitsubishi strengthens control.

To contact the reporter on this story: Yuji Okada in Tokyo at yokada6@bloomberg.net; Go Onomitsu in Tokyo at gonomitsu@bloomberg.net.

To contact the editor responsible for this story: Clyde Russell at crussell7@bloomberg.net.

Related Article:

Kogas to join Donggi Senoro LNG plant project

Govt allocates Rp12 Bln to develop Trunojoyo airport

Antara News, Saturday, January 22, 2011

Sumenep, E Java (ANTARA News) - The government has agreed to allocate Rp12 billion to develop Trunojoyo airport in Madura island, East Java, an official said.

"Thank God, the Sumenep district government`s effort to develop Trunojoyo airport has received attention and support from the central government," Head of the Sumenep district transportation office R. Achmad Aminullah said here on Friday.

The funds would be taken from the 2011 state budget, he said.

He said the local government had since the past few years planned to develop the airport as a commercial airport for scheduled flights.

"Right now Trunojoyo airport does not meet requirements as a commercial airport due to a lack of required facilities," he said.

The airport which had 905-meter runway lacked necessary facilities such as fire trucks and waiting rooms, he said.

"It is impossible for the local government to overcome the shortcomings on its own. Therefore, we have asked for assistance from the central government to provide funds to develop the airport," he said.

Norway students to study in Bali

The Jakarta Post, Jakarta, Fri, 01/21/2011

A total of 403 students from Gateway College in Norway will be leaving for Bali to study in the coming semester, the Indonesian Embassy in Oslo says.

The students would study philosophy, cultural psychology, sports, tourism management, economics and Indonesian language, the embassy’s third secretary for social affairs and culture Febby Fahrani said in a statement made available to Antara on Friday.

The students will work with assistance from lecturers of Telemark University College, Sogn og Fjordane University College, Le Sud University College, Lillehammer University College and Udayana University in Bali.

Before leaving for Indonesia, Ambassador Esti Andayani hosted a farewell party that allowed the students to enjoy Indonesian food, Balinese gamelan and a documentary film about Indonesia with a particular focus on Bali.

They are among 670 students from Norway who will study in Bali during the first semester of the year beginning February. The others are from GOstudy (140 students), Active Education (96 students) and Kulturakademiet (31 students).

Last year saw 1,285 students from the four colleges participate in pre-university study exchanges in Bali, a 50 percent increase from the previous year.

Microsoft Reaches for Clouds With Indonesia Ambitions

Jakarta Globe, Shirley Christie | January 21, 2011

Software giant Microsoft is looking to invest around $2.5 billion in Indonesia to develop cloud-computing systems, an official said on Thursday.

Software giant Microsoft is looking to invest around $2.5 billion
in  Indonesia to develop cloud-computing systems, an official
said on Thursday. (AP Photo)    

Sutanto Hartono, chief executive of Microsoft Indonesia, said it was partnering with Telekomunikasi Indonesia (Telkom), Astra Graphia Information Technology, cloud-computing infrastructure firm Greenview and Infynis System Indonesia for the initiative.

Cloud computing, in which vast data banks and programs can be accessed remotely using a personal computer connected to the Internet, would be invaluable to the corporate market, he said.

“It’s going to be cost-saving and efficient because instead of spending on capital expenditure, a company would spend on operational expansion using cloud computing,” he said at the Microsoft Cloud Summit in Jakarta.

The best-known examples of cloud computing services are those offered by Google as well as Amazon, which launched S3, an online data storage service.

Cloud computing, essentially a network of servers, also allows users to access online applications anywhere in the world, often for a subscription fee, without having to install software on their own computers.

“Cloud computing is now the center of all the things we do,” said Chris Sharp, regional cloud strategist for Microsoft Asia Pacific and Japan.

He said among the 17 countries that he had managed so far, Indonesia posed a unique opportunity to generate about $75 million annually from cloud services within several years.

“It’s an evolution of virtualization,” said Arya Sanjaya, business developer manager for Intel Indonesia, referring to the system of separating computer functions from physical hardware.

“If a company used to have three servers to run three applications, with virtualization, it could run all three applications using one server,” Arya said.

Sutanto added that companies would no longer have to buy servers — computer systems that allow users in a network to access and store files — and hire technicians to maintain them.

“Now, all a company needs is a computer and a broadband Internet connection [to benefit from] cloud computing,” he said.

The cost of running a virtual server is small, Sutanto said. A small shop running inventory software from a public cloud can spend $300 on a computer and $15 a month for Internet and cloud service subscriptions.

Larger companies can create their own private clouds which can host all their applications.

But many local firms are reluctant to use cloud computing, still a relatively new concept in Indonesia, due to concerns about data security and effectiveness.

Still, government agencies and at least 14 big firms had expressed interest in cloud technology, according to Manish Chopra, Microsoft Indonesia’s marketing and operations director.

He cited the estimated 700 participants who flocked to the recent Cloud Summit, a roadshow for the new technology.

Chopra said he saw huge potential in this country with its more than 30 million online users, as of last year. Broadband access is also growing, with the penetration rate expected to reach more than 75 percent this year.

Brian Prentice, vice president for research at IT firm Gartner, said revenue generated from cloud services around the world were estimated to reach $68.3 billion last year, or up 16.6 percent from $58.6 billion in 2009.

“With an average growth rate of 20 percent, we estimate that by the end of 2014, this figure will increase to $148.8 billion,” he said.

Aside from Microsoft, other technology firms are linking up with Indonesian companies to set up cloud computing systems.

Last week, Telekomunikasi Selular (Telkomsel), a subsidiary of Telkom, said it was partnering with Google to launch Business Connect, a Web-based package.

It includes e-mail, instant messaging, office operation tools, a calendar and documents-sharing under Google Apps.

Doug Farber, Google Asia Pacific’s managing director for enterprise, said in a statement that the cloud-based applications would help boost business productivity in a way that standard applications could not.

Some of the advantages, he said, were larger data capacity, instant messaging enabled with voice and video chat, as well as the ability to access apps using mobile phones.

Sharp said competing firms offering cloud services would drive companies like Microsoft to develop better technology and products for customers.

RI, US to combat illegal logging

Antara News, Friday, January 21, 2011

Jakarta (ANTARA News) - Indonesia and the United States have agreed to combat illegal logging by providing more complete equipment in exporting the wood, a Forestry Ministry official said.

"The cooperation with the US is important as it is one of the biggest destination of our wood exports after Europe and Japan," Agus Sarsito, director of international cooperation at the Forestry Ministry, said here Friday.

The US promised not to receive illegal logs from Indonesia, Agus said after closing a workshop in related issues.

"Indonesia has agreed with the US and some other countries that only legal logs can enter those countries," he added.

In addition, Agus also said that the ministry would have further cooperation with the Industry Ministry, Trade Ministry and Finance Ministry to ban illegal log exports more effectively.

"The Forestry and Trade Ministries will revise the regulation on trade to make the program run well. And last but not least is cooperation with the customs and excise directorate general because it is the last gate in Indonesia for domestic products," Agus said.

Moreover, he said, the cooperation between Indonesia and the US would help the reduction of illegal log exports.

Combating illegal logging cannot be done alone and therefore, there need to be cooperation with other countries not to receive illegal logs, he said.

Meanwhile, Deputy Chief of Mission of the United States Ted Osius said the partnership was the right solution to combating illegal logging and in dealing with climate change in the world.

"It`s really a comprehensive partnership because it`s all about working together for better world. And there`s nothing I can think of, that it`s more important than the other challenges of climate change. So, Indonesia government is the true partnership in this area," Ted said.

Ted confirmed that illegal logging cases in Indonesia were getting reduced as the time goes by due to the development of tools used.

"Indonesia has developed the tools to combat the illegal logging and some researches showed that the trend of illegal logs coming out in Indonesia is going down. We`re happy to support such effort of Indonesia," he said.

The US supports the Government of Indonesia`s leadership on climate change and commitment to reduce emissions 26 percent below business as usual and up to 40 percent with international assistance.

One of the efforts to conserve Indonesia`s forests is to combat illegal logging and associated timber trade. The US and Indonesia demonstrated their mutual commitment to combat illegal logging and associated timber trade by signing an MoU in 2006.

Chinese firm to fund Rp 1,5 t road project in Mamuju

The Jakarta Post, Jakarta | Fri, 01/21/2011

China Metallurgical Group Corporations has expressed interest in financing a road construction project worth Rp 1.5 trillion (US$165 million) in Mamuju, West Sulawesi, the regional Chamber of Commerce and Industry (Kadin) says.

After a meeting with a delegation of Chinese firms, West Sulawesi Kadin chairman Harry Warganegara told reporters on Friday that the meeting was a follow-up to the Memorandum of Understanding (MoU) signed in 2010 by the Chinese and Indonesian governments with regards to the funding of future development projects in West Sulawesi.

“This particular Chinese investor is ranked eighth in the world. It’s subsidiary has the large capital to fund the project,” said Harry as quoted by antaranews.com

The Chinese delegation recently proposed a blueprint for the project, which is estimated to begin mid-April 2011. West Sulawesi Governor H Anwar Adnan Saleh attended the presentation.

The decision will rest on the result of the feasibility study that is currently being conducted by the Chinese investors.

Australia to build "peace museum" in Indonesia's Bali

English.news.cn 2011-01-21

JAKARTA, Jan. 21 (Xinhua) -- The Australian government is seeking support from Indonesia's local government in Bali for building a "peace museum" that commemorates Australians perished in 2002 Bali bombing, local media reported on Friday.

Speaking on the sidelines of his meeting with regent of Bali's Badung regency Anak Agung Gde Agung on Friday, Australian ambassador to Indonesia, Greg Moriarty, said that the museum would be constructed near the ground zero in Badung regency where the bomb blast killed 202 people in Bali in mid-August 2002.

Most of the casualties were Australians, the Antara news service reported.

Badung regent Anak Agung said that his administration would fully support the museum construction plans after learning that the Australia government has settled the acquisition process on the site where the project would be carried out.

Indonesia's leisure island of Bali saw strings of deadly terrorist attacks perpetrated by Indonesian terrorist cells that killed hundreds of westerners and local people. The security in the Indonesia's prominent island has been in perfect condition after Indonesian apparatus arrested the terrorists. Some of them were executed after undergone trials in public courts.

Editor: Tang Danlu

Daihatsu to Raise Indonesia Minicar Production to as Many as 400,000 Units

Bloomberg, By Anna Mukai and Yuki Hagiwara - Jan 19, 2011

Daihatsu Motor Co., Japan’s biggest minicar maker, will boost production in Indonesia to as much as 400,000 vehicles this year as the Toyota Motor Corp. unit seeks to increase sales in the Southeast Asian nation.

Indonesian auto demand will continue to expand and it’s necessary for Daihatsu to increase capital spending there if it wants to raise production further, President Koichi Ina said in an interview.

The company, based in Osaka, Japan, aims to increase sales in Indonesia 25 percent to 145,000 vehicles in 2011 from 115,000 last year. Its factory there, which also exports to the Middle East and Africa, will raise annual output to 330,000 units in May from the current 280,000 and could further boost production to a yearly rate of 400,000 vehicles, he said.

Japanese automakers are adding capacity in the region as sales growth outpaces the mature markets of the U.S, Europe and their home market, while the strong yen and lower labor costs make local production attractive. Auto sales in Indonesia are expected to rise 16 percent to 710,000 vehicles this year from 610,000 in 2010, according to IHS Automotive.

Daihatsu, which said last week it would withdraw from Europe in 2013 because the yen’s strength makes its exports uncompetitive, expects Japan sales to fall 4.2 percent to 1.65 million vehicles this fiscal year, Ina said.

Cutting Costs

To boost earnings, the company, 51 percent owned by Toyota, will focus on cutting costs and raising sales in Japan, Indonesia and Malaysia, Ina, 62, said in the Jan. 14 interview at the company’s headquarters.

“For now, we are not looking at entering markets elsewhere,” he said.

Daihatsu rose 1.6 percent to 1,312 yen yesterday in Tokyo trading. The stock has gained 5.3 percent in 2011.

The yen rose against all major currencies in 2010 and reached a 15-year high of 80.22 yen against the dollar in November.

In Japan, Daihatsu will introduce the e:S minicar in August with a price of less than 1 million yen ($12,160) and a fuel economy rating of 30 kilometers per liter (70 miles per gallon) under the Japanese test system.

The carmaker also plans to begin supplying Toyota with minicars in the second half of this year. Production will be limited to 60,000 units annually “no matter how much the market may expand,” Ina said.

Toyota doesn’t make its own minicars, which are limited to engines with capacities of 660cc or smaller and account for about 33 percent of auto sales in Japan, according to data from the Japan Automobile Dealers Association and the Japan Mini Vehicles Association.

Separately, Daihatsu plans to sell a hybrid car using technology from Toyota and it may also receive electric-vehicle components from its parent, Ina said. Daihatsu will decide the type of hybrid it will sell this year, Ina said.

To contact the reporter on this story: Anna Mukai in Tokyo at amukai1@bloomberg.net; Yuki Hagiwara in Tokyo at yhagiwara1@bloomberg.net

Investors from India to invest US$15 billion in Indonesia

Antara News, Thursday, January 20, 2011

Jakarta (ANTARA News) - Some investors from India will invest US$15 billion in Indonesia this year, head of the Capital Investment Coordinating Board, Gita Wirjawan, said here on Thursday.

"The foreign investment from India will be realized this year. The signing of some of the agreements will be done next week," he said.

He said the Indian investors were interested in infrastructure sectors such as railway, seaport and airport development projects.

They will also enter into shipbuilding, alumina processing and coal mining, he said.

Gita did not tell about the number of the investors who would come to Indonesia but said they include Tata, Adani Group, Power and GBK.

"Usually it would take three to four years to realize investment. But they have already expressed their commitment and some of them have even signed a memorandum of understanding," he said.

According to records the total value of trade between the two countries reached US$12 billion in 2010 rising from US$9.6 billion in 2009.

Indonesia`s exports to India include vegetable oil, raw palmoil, coal, copper ore, cashew nuts, print paper, machinery and electronics, chemical products, natural rubber, balata, glass wares and pulp.

Indonesia meanwhile imports goods such as nylon, organic chemical substance, iron and steel products, purified copper, synthetic fiber and cotton.

Indonesia to host WEF 2011

Antara News, Thursday, January 20, 2011

Jakarta (ANTARA News) - Indonesia is to host the World Economic Forum (WEF) on East Asia on June 12-13, 2011, Trade Minister Mari Elka Pangestu said here on Thursday.

"We will take advantage of it because we will also host ASEAN Summit in October this year to put Indonesia in the role of leadership in ASEAN and East Asia region," Mari said.

She said it would be the first for Indonesia to host WEF after its neighbor countries such as Singapore, Malaysia, Vietnam, and Japan have ever been trusted to be the organizing committees.

"It will be the first time for us to host the World Economic Forum, and we hope Indonesia will take a leadership role and become the central power in Southeast Asia and East Asian region," Mari said.

The minister said global issues related to commodity prices volatility, food resilience, and energy resilience would be among the topics of discussion at the forum.

"The topics of discussion will be the same as that during WEF in Davos, and it will be a challenge for the government, business world, and private party to step up the industry, investment, and technology -- especially agriculture and climate change technology to face with extreme climate change," Mari said.

The World Economic Forum is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas.

Mari said President Susilo Bambang Yudhoyono would lead Indonesia`s delegation in the 41st World Economic Forum (WEF) in Davos-Klosters, Switzerland next January 26-31,2011.

The minister said she would accompany President Yudhoyono to the forum with several senior officials such as Coordinating Minister for the Economy Hatta Radjasa, Finance Minister Agus Martowardojo, Foreign Affairs Minister Marty Natalegawa, Investment Coordinating Board` (BKPM) chair Gita Wirjawan and leaders from national enterprises namely Bank Mandiri, BNI, Garuda Indonesia, Bhumi Resources, Indorama and Gunung Sewu.

S korean tire maker invests $1.2 bln in RI

Antara News, Thursday, January 20, 2011

Jakarta (ANTARA News) - A South Korean tire maker Hankook Tire plans to build a new tire plant at a cost of US$1.2 billion in Bekasi, West Java.

In the first phase, the company would invest US$353 million in the project scheduled for completion in 2014, Chairman of the Investment Coordinating Board (BKPM) Gita Wirjawan said on the occasion of "Hankook Tire`s Planned Investment in Indonesia" at the BKPM building here on Thursday.

Also present at the event were Industry Minister MS Hidayat, Hankook Tire Vice Chairman & CEO Seung Hwa Suh, and Hankook Tire Executive Vice President Hyun Bum Cho.

Gita said the construction of the plant with a production capacity of 6 million tires a year would be started in the first quarter of 2011.

The plant which will produce tires for four-wheeled and two-wheeled vehicles will be built on 60 hectares of land in Cikarang, Bekasi, West Java. Once the project is completed, Indonesia will become a hub for Hankook tires in Southeast Asia.

Hyun Bum Cho said by building a new plant in Indonesia, the company would be one of the world`s five largest tire producers, with a production capacity of 100 million units a year in 2014.

The company is expected to sell its products from the Bekasi plant in a number of Asian and American countries.

Hankook now has five tire plants, including those in Hungary and China.

W. Sumatra geothermal block fails to lure investors

The Jakarta Post, Jakarta | Wed, 01/19/2011

Amid recent campaigns for renewable energy, a geothermal mining working area in Solok Regency, West Sumatra, has failed to attract investors, the government says.

West Sumatra Energy and Mineral Resources Agency chief Marzuki Mahdi on Tuesday said he had twice publicly announced the bid for geothermal mining working area in Bukit Kili, but had received no responses at all, kompas.com reported.

The working area has the potential to produce up to 86 megawatts of electricity (MWe) for power generation, with a realization of up to 53 MWe.

Upon recommendation from the geology office of the Energy and Mineral Resources Ministry, the working area in Bukit Kili may be combined with that of Gunung Talang, which has the untapped potencial for 58 MWe, with a realized figure yet to be calculated, Marzuki said.

West Sumatra has geothermal potentials in 16 areas with a total output of up to 1,656 MWe in the regencies of Pasaman, Limapuluh Kota, Agam, Solok, Tanah Datar and Solok Selatan, and in Solok city.

The mining working area in Solok Selatan had earlier been tendered with PT Supreme Energy as the winner. The company is currently conducting a survey in the area.

Germany disburses Rp 90b for geothermal project in Aceh

Nani Afrida, The Jakarta Post, Jakarta | Tue, 01/18/2011

German development bank KfW has disbursed a total of Rp 90 billion or 7.72 million euros (US$9.9 million) in grants to Indonesia to finance geothermal exploration activities in Aceh.

Indonesia’s Finance Ministry debt management director general Rahmat Waluyanto said Tuesday the activities were part of the government’s target to develop geothermal power plants with a total capacity of 12,000 megawatts across the country.

“Indonesia needs 18.7 million euros to construct a geothermal power plant in the area [Aceh],” Rahmat said.

He added that the Aceh administration would allocate Rp 2.5 billion for the same project, and that the remaining funds needed were expected to be covered by a company's winning bid on the project.

Rahmat said the project was also part of Indonesia and Germany’s partnership in tackling climate change.

Taiwan firm to make paper from rice, wheat stalks

The Jakarta Post, The Associated Press, Taiwan | Sat, 01/15/2011

A leading Taiwanese paper company expect to begin mass producing paper pulp made of rice and wheat stalks this year, a newspaper reported Saturday.

Yuen Foong Yu Group collaborated with Taiwanese universities in developing the bio-technology, Chairman Ho Shou-chuan told the Economic Daily News.

It's a cheaper and greener process because more paper pulp can be produced from rice stalks - farming byproducts that are usually dumped - than from the same amount of lumber by weight.

Ho said he hoped the new technology could replace existing chemical processes that are highly polluting and require cutting down massive numbers of trees.

The new pulp-making technology will use energy more efficiently and produce much less carbon dioxide during manufacturing, he added.

Yuen Foong Yu has been making industrial paper in Yangzhou City in eastern China. Last year, it invested $8 million to set up a new factory there to make the bio paper pulp, the newspaper said.

Production is expected to begin during the second half of this year, he added.

The group's spokesperson could not be reached for comment on Saturday.

The Yuen Foong Yu Group also owns Taiwan's E Ink Holdings Inc., which supplies global e-reader makers such as Amazon Inc. with electronic paper.

Maritime International Training Center to be Built in Pangkep

Tempo Interactive, Thursday, 13 January, 2011 

TEMPO Interactive, Makassar:A Maritime International Training Center to be built in Pangkep this year will be luxurious and world-class, Saggaf Saleh, the South Sulawesi Manpower and Transmigration Office chief said in Makassar yesterday. 

The construction project located in Mandalle sub-district is valued at Rp300 billion. The building will be equipped with supporting equipment for the training. “We will have complete facilities to prepare our manpower to work overseas,” he said. 

The training center will have a dormitory with 1,000 rooms for the trainees. The project is fully funded by the state budget and is expected to be completed by 2013. “We are prioritizing the quality, not the quantity,” said Saggaf. 

Instructors will also be flown in from the Netherlands, while local instructors will be sent to the Netherlands to improve their skills. 

The Takalar Regency previously submitted documents for the building’s construction however, as the land administration was not arranged until the end of 2010, the government relocated it to Pangkep. “It is ready there and close to Makassar,” Saggaf said. 

Until 2010, there were 4,850 people from South Sulawesi working overseas, mostly in Malaysia. 

According to Saggaf, most South Sulawesi workers are hired as domestic workers or work at cocoa and palm oil plantations. “The technical workers are usually sent to Brunei to work in the oil sector,” he said. 

In Saudi Arabia, he continued, around 160 people from South Sulawesi were employed as drivers, cleaners and domestic workers. “We are thankful there are no problems with abuse such as the Sumiati case,” Saggaf said. 

This year, another 150,000 workers will be added in South Sulawesi. Therefore, he said, the province needs investors to create job opportunities. 

ABD AZIS

Indonesia Donates $1 Million for Australia Flood Relief

The Jakarta Globe, Nurfika Osman & AP | January 12, 2011

         

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Indonesia is donating $1 million to help the victims of the deadly floodwaters that have swept Queensland, Australia, Foreign Ministry spokesman Michael Tene told the Jakarta Globe on Wednesday.

An aerial view of partially submerged houses in flooded
 Rockhampton in Australia's state of Queensland. Indonesia
 has donated $1 million to Australia to help the flood victims.
 (Reuters Photo) 

"[Foreign] Minister Marty Natalegawa has contacted Australian Foreign Minister Kevin Rudd this morning and the fund will be sent immediately," Michael said.

Regarding the condition of Indonesians in Brisbane, he said he has not received detailed information yet.

"But if others take refuge, I am sure they will do the same thing," he said.

Deadly floodwaters that have cut a swath across northeastern Australia flowed onto the streets of the nation's third-largest city Wednesday, forcing people to flee suburbs and skyscrapers as rescuers elsewhere searched for 67 people still missing.

Almost 20,000 homes in Brisbane were expected to be swamped in the city of about 2 million by the time the Brisbane River reaches its expected peak Thursday, Mayor Campbell Newman said.

The figures were constantly being revised as the threat became clearer and it was getting consistently worse.

At least 22 people have died in Australia's northeastern state of Queensland since drenching rains that began in November sent swollen rivers spilling over their banks, inundating an area larger than France and Germany combined.

Govt plans new toll road to Bali airport before APEC Summit

The Jakarta Post, Jakarta | Tue, 01/11/2011

On Tuesday, the government announced plans to build a toll road in Bali connecting Nusa Dua airport with the rest of the island.

“We have agreed to build the Sarangan - Nusa Dua toll road, spanning 11.5 kilometers, in Bali," State-Owned Enterprises Minister Mustafa Abubakar said Tuesday after meeting Coordinating Economic Minister Hatta Rajasa.

“The toll road will not curve but cut from the airport to Benoa. It will also cut from the airport to Sarangan," he added.

Four state-owned enterprises, PT Jasa Marga, PT Pelindo III, PT Angkasa Pura, and the Bali Tourism Development Board, would form a consortium that would oversee the construction of the road.

“The four state-owned enterprises will work together to manage [the construction of] the toll road so it won't be necessary to use the state budget [APBN]. All funds, amounting to Rp 1.4 trillion to Rp 1.6 trillion, will come from the state-owned enterprises,” Mustafa said.

He added that the construction would begin in January, and has been targeted for completion by May 2013.

"We hope this road will be complete before the APEC Summit in Bali in 2013," he said.