E Kalimantan builds three industrial estates

Antara News, Mon, May 30 2011

Samarinda, East Kalimantan (ANTARA News)- To build a highly competitive regional economy to raise the welfare of the local population, the East Kalimantan provincial administration is developing three industrial groups prioritizing agricultural and industrial development, and exports.

"The sectors are oleo chemical agricultural based industries in East Kutai, oil, gas and condensate based industries in Bontang, and industrial areas in Kiangau, Balikpapan," East Kalimantan Governor Awang Faroek Ishak said here Monday.

He added that the development of oleo chemical agricultural industries in East Kutai regency was already in line with Presidential Instruction No 1 of 2010 on National Development Priorities, in other words it has the support of the President.

Under Presidential Instruction, East Kalimantan is preparing 5,035 hectares, for the building of an industrial estate and international port (KIPI) Maloy.

The area will be divided into two locations, the first 1,000 hectares in Teluk Golok for a CPO plant, and the second 4,035 hectares in Maloy for an industrial estate and container port.

The project in Bontang was aimed at supporting the development of petrochemicals like urea, ammonia, soda and methanol, while an ammonium nitrate plant is under construction, and the area has raised its urea production capacity by building urea plants.

The industrial estate in Karingau in Balikpapan, will have CPO receiving facilities on 426.9 hectares called PT Mekar Bumi Andalas, a wood pulp plant PT Kutai Chip Mill also already operating in 15 hectares, and a coal handling area PT Gunung Bayan Grup on 400 hectares.

The other projects include an area for a shipbuilding yard and rubber industry PT Dermaga Perkasa Pratama already operating, a Pertamina supply base for offshore drilling on 8.9 hectares.

"The three estates are expected to be developed into a Special Economic Zone, for which the industrial groups need to be fully supported by effective and reliable infrastructural means and facilities," the governor said.

Editor: Aditia Maruli

S Korean firm to invest in W Java`s water industry

Antara News, Fri, May 27 2011

Bandung, West Java  (ANTARA News) - South Korean tap-water company K-Water has expressed its readiness to engage in the water processing industry in West Java with an investment of about 50 trillion rupiah, a local official said.

"So, South Korean tap water company K-Water is ready to invest 50 trillion rupiah in the clean water processing industry in our region. It is already doing the same thing in Lampung and Bali," West Java Vice Governor Dede Yusuf said here on Friday.

According to Dede Yusuf, if K-Water`s intention to invest is realized, the people`s need for clean water in Bandung city, Bandung district, the town of Cimahi and Bandung Barat district can be fulfilled.

Dede Yusuf said further that currently Bandung Raya needs 7,000 liters of clean water per second, but the designed capacity of the local tap-water company is only about 3,340 liters per second of water. So, there was a shortage of about 3,500 liters per second.

In a bid to meet the public need for clean water, the provincial government should encourage a lot of investment in the production of unprocessed water, the processing steps, the water shipment or transportation and supply pipes.

Dede Yusuf said, the central government through the National Development Planning agency had only allocated some 250 billion rupiah (for West Java) to develop water processing facilities until 2015.

Considering the urgent need for clean water and the current population r growth , it was predicted that the local government would be unable to meet the people`s demand for clean water.

Therefore, the provincial administration needed to cooperate with investors to increase the region`s water processing capacity, Dede Yusuf said.

Editor: Jafar M Sidik

Govt to build three LNG receiving terminals

Antara News, Fri, May 27 2011

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Jakarta (ANTARA News) - The government plans to build three LNG (liquefied natural gas) storage terminals which are expected to start operating in 2012, a senior energy official said.

The Energy and Mineral Resources Ministry`s director general of oil and gas, Evita Legowo, said here on Friday the three LNG terminals would be built at three locations, namely Jakarta, Belawan (North Sumatra) and Arun in Aceh.

"The operation of the terminals will reduce domestic gas supply problems," she said.

She said the LNG terminal in Jakarta is expected to start operating in the first quarter of 2012 while that in Belawan in the second quarter and that in Aceh in the third quarter of that year.

She said the government also plans to build another LNG terminal in Semarang, Central Java, which is expected to operate in 2013.

The groundbreaking of the LNG terminal project in Jakarta was carried out on Friday morning by the director for general affairs of state-owned oil/gas company PT Pertamina, Waluyo.

The project is carried out by PT Nusantara Regas which is a joint venture of PT Pertamina and state-owned gas company PT PGN respectively holding 60 and 40 percent shares.

The capacity of the floating terminal is planned at three million tons or 400 million cubic feet per day (MMSCFD) with an initial capacity of 1.5 million tons.

The terminal will receive LNG from the refinery in Bontang, East Kalimantan, totaling 1.175 million tons a year based on a ten-year contract or totally reaching 11.75 million tons.

Pertamina`s spokesman M Harun said his side is still seeking supply from other sources to meet the terminal`s needs.

The gas will be used to meet the demands of Muara Karang and Tanjung Priok power plants in North Jakarta.

The Arun terminal meanwhile will be modification of its old function as a supplying terminal into a storage terminal.

"So it is only being reversed so that not much investment will be needed," he said.

He said LNG supply to Arun was expected to come from Bontang or Tangguh in Papua.

The Arun terminal built by Pertamina wiil supply gas to fertilizer companies, power plants, paper and other industries.

Evita said the Belawan terminal which would be built by PGN has received supply up to 140 MMSCFD.

The gas from the terminal with a capacity of 200 MMSCFD will be used by PLN (state power company) totaling 140 MMSCFD and industries 60 MMSCFD.

The LNG to be supplied to Belawan terminal totaling 140 MMSCFD will come from the shifting of exports to Sempra in the United States.

Based on a contract, exports of LNG from Tangguh reach 3.6 million tons a year with the possibility for 50 percent of them or 1.8 million tons a year to be shifted to other buyers with a compensation fee of around one US dollar per MMBTU to Sempra.

Besides Tangguh the PGN will also open an import option to meet the need of gas for the Belawan floating storage and regasification unit.

Editor: Jafar M Sidik

Aru district developing sea water processing technology

Antara News, Fri, May 27 2011

Ambon, Maluku (ANTARA News) - The Aru Islands District administration in Maluku province is currently developing a technology to process sea water into clean water.

The sea water processing technology is being developed in four villages which have been facing clean water problem so far in the district, head of Aru`s public works department, Ongky Nanulaita, said here on Friday.

He said the application of such a technology has been developed since 2010 by adopting it from Maldives city of Male to ensure the availability of clean and potable l water for the local people`s consumption.

Four villages where the technology is being developed are Kujabi in Aru Tengah Timur sub-district, Marlase in Aru Utara sub-district, Benjina in Aru Tengah sub-district, and Langgarapara in Aru Tengah Selatan sub-district.

"The application of the sea water processing technology in Aru Islands District began with a comparative study in Maldives whose area`s characteristic is the same as that in Aru," Ongky said.

He said it was a new breakthrough in Aru which is mostly made up of low-lying rocky areas.

"With that technology we guarantee the availability of clean healthful water for the local community," Ongky said, adding that the district has lack of water catchment area, except the district town of Dobo.

Thus to maintain the water catchment area in Dobo, Ongky said development of settlement area there should be limited.

Asked if such a technology could also be developed at other villages in the district, Ongky said a careful evaluation was needed to decide if it was possible.

"The application of the technology in the four villages is a pilot project that has to be evaluated to find out if it can be developed as well in other villages," Ongki said.

Editor: Jafar M Sidik

Govt Announces 17 Infrastructure Projects Worth Rp190 Trillion

Antara News, Fri, May 27 2011

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Jakarta (ANTARA News) - The Indonesian government announced 17 new infrastructure projects worth Rp190 trillion as part of its 2011-2025 Indonesia Economic Development Expansion and Acceleration Master Plan.

"The number of projects officially started is 17 and they are part of all infrastructure projects to be carried out until 2014 worth Rp400 trillion," coordinating minister for economic affairs Hatta Rajasa said in his speech at the launching of MP3EI here on Friday.

Hatta said the projects were launched in four locations namely Sei Mangke in the province of North Sumatra, Cilegon in Banten, Lombok Timur, East Nusa Tenggara and Timika, Papua, with funds coming from state-owned companies, national private companies, foreign direct investment and national budget.

"The groundbreaking is a start for MP3EI other projects. In the months and years to come it will continue to be done and therefore a solid team is needed to conduct monitoring so that no obstacles are to be found by prioritizing transparency and accountability.," he said.

Hatta said the launching of MP3EI would be the start of "business not as usual" to accelerate economic development across the country sustainably and equally through synergy building involving all components in the central and regional governments.

"The master plan is expected to be able to eradicate various obstacles of development such as `bottleneck` that disrupt business climate and certainty," he said.

In Sei Mangke there will be three projects which are to be developed namely an oil palm area development project by PT Perkebunan Negara III with an estimated investment of Rp2.5 trillion.

The other ones are the Peusangan 1 and 2 (2x44MW) hydro-powered plants (PLTA) in the Aceh province worth Rp1.53 trillion and the Broadband Access and Through Broadband Access Plan by PT Telkom.

Five main projects in Cilegon in the West Java province of Banten meanwhile are the modern steel plant development project by PT Krakatau Steel and POSCO of South Korea worth Rp60 trillion and energy gasification project worth Rp59 trillion.

The third project is the extension of Samping, engine, casting and assembling plant for motor vehicles by PT Astra Daihatsu worth Rp2.4 trillion.

The fourth project meanwhile is the Tanjung Priok toll road worth Rp1.6 trillion by JBIC, the central government, the Jakarta administration, PT Angkasa Pura and PT Jasa Marga and the fifth is the aluminium grad chemical plant worth an investment of Rp4.3 trillion in Sanggau, West Kalimantan.

Four projects meanwhile will be carried out in East Lombok namely the Pandan Duri dam with an estimated investment of Rp728 billion, the Titab dike worth Rp481 billion, the Ngurah Rai airport expansion worth Rp1.94 trillion and the development of new Garuda Airlines routes o 13 cities in the Indonesian eastern regions.

Four projects to be carried out in Timika, Papua, meanwhile include the 135-kilometer long Timika-Enarotali highway with an investment of Rp600 billion and the 600-kilometer long Merauke-Waropko worth Rp1.2 trillion.

The others include a mining project and a cobalt and nickel processing plant worth Rp50 trillion and 150 KWp and 200 KWp solar power projects (PLTS).

Editor: Ella Syafputri

Germany assists RI in forest, climate change program

Antara News, Thu, May 26 2011

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Jakarta (ANTARA News) - Germany has committed to assisting the Indonesian government in the Forest and Climate Change program (ForClime).

The ForClime program will be carried through two cooperation moduls, namely Technical Cooperation (TC) via GIZ with funds worth 6.75 million Euro and Financial Cooperation (FC) through KfW worth 20 million Euro, the forestry ministry said here Thursday in a press statement.

The program has a target to decrease the CO2 emission rate from deforestation and forest degradation by 300 to 400 thousand tons during a seven-year period.

The assistance was provided as the result of the bilateral negotiation held in October 2007.

The ForClime program launching was marked by "ForClime FC-Module National Kick-off Workshop".

The program`s demonstration activities on REDD+ (Reducing Emission from Deforestation and Forest Degradation) is implemented in three districts on Kalimantan Island, namely Kapuas Hulu, Malinau and Berau.

The objective of the program is to cut the greenhouse gas emission from the forestry sector and to improve the living condition of the rural people.

The gas emission rate will be reduced by addressing the main drivers of deforestation and forest degradation occurring the conserved forests, protected forests and production forests.

President Susilo Bambang Yudhoyono recently signed a Presidential Instruction on deforestation moratorium to help curb the climate change impacts and preserve the remaining tropical forests and biodiversity in it.

The presidential decree on a moratorium on logging concessions for two years was only applicable to primary forests and peat lands in conserved forests, protected forests, production forests and the Other Use Land (APL).

Indonesia hosts the world`s third largest forest area after Brazil and Congo (formerly Zaire). Based on forestry ministry 2010 data, Indonesia has around 130 million hectares of forests, including 64.2 million hectares of primary forests, and 24.5 million hectares of peat lands.

Editor: Heru

Chinese investors eye infrastructure, energy projects in RI: Govt

Rangga D. Fadhilah, The Jakarta Post, Jakarta | Thu, 05/26/2011

Up to 300 Chinese investors have expressed a strong interest in infrastructure and environmentally friendly energy projects in Indonesia, projects that are hoped to accelerate Indonesia's economic growth, the government says.

According to a press statement made available on the website of the Indonesian Embassy in Beijing, China, Indonesia was seen as an attractive investment destination for Chinese companies aiming to expand their business networks on an international level.

Public Works deputy minister Hemanto Dardak said investment by Chinese companies would assist Indonesia's efforts to boost its economic growth through improved infrastructure and access to energy.

“With their experience, technology and financial strength, investment from Chinese companies will play a pivotal tole in achieving the Indonesian government’s target to accelerate and expand infrastructure development,” Hemanto said in his opening remarks at the Indonesia-China investment forum in Beijing on Wednesday.

Many Chinese big companies including Sinohydro, China Road and Bridge Corporation (CRBC), Gezhouba, CITIC and the China National Offshore Oil Company (CNOOC) joined the forum.

S Korea's Samsung signs contract to build oil facilities in Indonesia

English.news.cn 2011-05-25

JAKARTA, May 25 (Xinhua) -- An senior official said that the Indonesian unit of ExxonMobil Corp. has awarded contracts worth more than 780 million U.S. dollars to South Korean giant Samsung and its Indonesian partner, Tripatra Engineering, to build facilities at Cepu block, local media reported here on Wednesday.

BPMigas chairman Raden Priyono said the project would include building an oil-production facility at the oil and gas field in Central Java. The project was estimated to cost 900 million US dollars, but the consortium bid 780 million U.S. dollars.

"The tender will be completed soon, and its construction is expected to start in August this year," Piryono said on Tuesday. Tripatra is the engineering, procurement and construction services unit of Indika Energy, the nation's leading integrated energy company.

The Cepu block, located in Central Java, is operated by U.S. oil giant ExxonMobil. The field is 45 percent owned by ExxonMobil and 45 percent by state oil and gas company Pertamina, with the remaining 10 percent held by state enterprises, the Jakarta Globe reported.

Cepu's project will contain five separate units, Priyono said, including an onshore production facility, onshore pipes, offshore pipes, an offshore pile and supporting facilities such as an office building. The block is expected raise its disappointing output to 165,000 barrels of oil per day once the facilities are done in 2013.

Editor: Xiong Tong

Govt aims to produce 4,000 qualified sailors a year

Arghea Desafti, The Jakarta Post, Jakarta | Wed, 05/25/2011

The Transportation Ministry has announced plans to produce 4,000 sailors annually to meet increasing demand.

“We are currently producing 1,500 [graduates] a year from our state-owned sailing academies [STIP]. Hopefully we can increase the number of graduates to 4,000 next year,” Transportation Ministry Education and Training chief Bobby Mamahit said Wednesday at a discussion on improving the quality of human resources in the transportation sector.

Ministry data reveals that Indonesia will require at least 43,800 new sailors over the next five years.

The ministry is currently operating sailing schools in Jakarta, Tangerang, Semarang, Makassar, Surabaya, Barombong and Serang.

“One of the challenges we face is that we are still seeing graduates preferring to work for companies overseas rather than here in [Indonesia]," Bobby said.

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US ambassador meets with Indonesian diplomats selected for scholarship program

Antara News, Wed, May 25 2011 

Jakarta (ANTARA News) - Ambassador Scot Marciel recently hosted a group of young Indonesian diplomats selected to participate in the Fulbright-KEMLU Scholarship Program at his residence prior to their departure for the United States.

Scot Marciel. (ANTARA)

The Ministry of Foreign Affairs Center for Education and Training in cooperation with the American-Indonesian Exchange Foundation (AMINEF) offers the Fulbright-KEMLU Scholarships to junior diplomats to earn a Master`s degree in the U.S. in any field of study at the discretion of KEMLU, the US Embassy here said in its official website on Wednesday.

This coming year, six young diplomats have been selected to study under the program at the Fletcher School of Law and Diplomacy, Georgetown University, Clark University, the University of Chicago and Denver University.

The Fulbright-KEMLU Scholarship Program represents just one of many efforts under the Comprehensive Partnership designed to strengthen bilateral collaboration on a broad range of issues in order to promote peace, stability, and economic prosperity, not only for the United States and Indonesia, but also regionally and globally.

Editor: Priyambodo RH

PLN: 2,358 Mw PLTAs enter construction stage

Antara News, Tue, May 24 2011

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Jakarta (ANTARA News) - State-owned power company PT PLN said that hydroelectric power plants (PLTAs) with a total capacity of 1,358 MW have entered the construction and procurement stages.

PLN`s planning and technology director Nasri Sebayang said on the sidelines of a hearing with Commission VII of the House of Representatives in Jakarta on Monday that 1,204 MW of the total is part of the accelerated construction of power plants with a total capacity of 10,000 MW, second stage.

"The remaining 1,154 MW is outside the 10,000 MW project," he said.

He added that the projects included in the 10,000 MW power plants are 1,000 MW PLTA Jawa Barat, 174 MW Asahan-3, and 30-MW Simpang Aur.

Other than the 10,000 MW there are eight PLTAs with a total capacity of 695 MW, namely Poso 195 MW, Wampu 45 MW, Peusangan-2 88 MW, Genyem 20 MW, Malea 90 MW, Bontobatu 100 MW, Jatigede 110 MW, and Rajamandala 47 MW.

In the meantime, micro power plants (PLTM) under construction by private companies have a capacity of 435 MW and by PLN 24 MW.

Nasri also said that seven PLTA and PLTM projects are in the stage of design totaling 624 MW, including three PLTAs with a capacity of 541 MW and those in stage of tender documents are Merangin 350 MW, Jambi, Kusan 65 MW, Kalsel, and Bakaru-2 126 MW, South Sulawesi.

"Four other projects are in the stage of design preparations and tender documents with a total capacity of 83 MW, they are PLTA Beh 27 MW, NTB, PLTA Sawangan 16 MW, North Sulawesi, PLTA Warsamson 31 MW, Papua Barat, and PLTM Way Rancang 9 MW, East Nusa Tenggara.

In the meantime, he added, 15 other power plant projects with a capacity of 1,022 MW are still in the stage of feasibility studies. They are nine PLTAs built by private companies Karama 350 MW, West Sulawesi, Batu 100 MW, South Sulawesi, Lawe Mamas 90 MW, Aceh, and Umpu 15 MW, Lampung.

Then came PLTA Besai-2 40 MW, Lampung, Semung 25 MW, Lampung, Semangka 35 MW, Lampung, Hasang 30 MW, North Sumatra, Asahan 4 and 5 60 MW, North Sumatra.

Six other projects with a capacity of 277 MW built by PLN, namely Peusangan-4 27 MW, Aceh, Tala 50 MW, Maluku, Baliem-2 50 MW, Papua, Way Rancang 9 MW, NTT, Simanggo 86 MW, N Sumatra, and Masang 55 MW, also N Sumatra.

Under the general plan on power supply (RUPTL) for the 2010-2019 period, 73 projects with a total capacity of 5,140 MW will be built.

The hydropower in Indonesia has a total potential of 75,670 MW, including 22,371 MW in Papua and 16,844 MW in South Kalimantan, and Central Kalimantan.

Editor: B Kunto Wibisono

P&G plans to invest $100 million in Indonesia oleochemicals

Reuters, JAKARTA | Mon May 23, 2011

(Reuters) - Procter & Gamble Co (P&G) (PG.N) will invest $100 million in the oleochemical sector in Indonesia, the country's industry minister MS Hidayat said on Monday.

"P&G is anticipating the need for 200,000 tonnes of fatty alcohol in the coming ten years from Indonesia," Hidayat said following a meeting with P&G officials at his office.

"To meet the need they are preparing at least $100 million to set up a joint venture with the local partner in the sector," Hidayat added.

High commodity prices and government efforts to boost downstream industries have started to attract investment in Indonesia over the past year.

Indonesia plans to offer fiscal incentives and restructure its export tax policy on crude palm oil, after it steadily hiked the tax to 25 percent in February from just 3 percent a year ago, to do more to spur downstream processing in the country.

The country is still reliant on exports of raw materials, and is aiming to move up the value chain.

Agriculture companies are looking to take advantage of growing wealth within Southeast Asia's biggest economy.

Indonesia's economy grew by 6.5 percent in the first quarter of 2011 from a year earlier, data showed in early May, due in part to strong domestic consumption.

(Reporting by Yayat Supriatna; Writing by Michael Taylor; Editing by Muralikumar Anantharaman)

Batam designated as ASEAN batik trade center

Antara News, Sat, May 21 2011

Batam (ANTARA News) - The Trade Ministry has designated Batam city in Riau Islands province as an ASEAN Batik Trade Center, a local trade official said.

"The Trade Ministry approved the designation of Batam city as an ASEAN Batik Trade Center yesterday," spokesperson of Batam`s Indonesian Chamber of Commerce and Industry (Kadin), Nada Faza Soraya, said here on Saturday.

She said the selection of Batam as an Asean Batik Trade Center was agreed on during an ASEAN summit in Jakarta early this month.

According to her, it was the Kadin Indonesia Foundation and Indonesian Batik Foundation that had asked the Trade Ministry to name Batam as a batik trade center in the ASEAN region.

Nada said t due to its strategic location and sea border with several Asean countries, the city was desfined as the Asean batik trade center.

In late 2009, the UN Educational, Scientific and Cultural Organization (UNESCO) officially recognized batik as an Indonesian cultural heritage.

Batik was considered not only as part of Indonesian cultural heritage but also recognized as a representation of humanity`s culture for its rich value and cultural inheritance.

With the determination of Batam as batik trade center in Asean, she said Indonesian batik industry was expected to be more prospective.

Therefore, Nada added that Kadin along with several other batik foundations would conduct batik education and its familiarization.

According to her, batik-related education was necessary for Indonesian community to know more about Indonesian cultural riches which have been recognized internationally.

"The Indonesian community need to know various kinds batik motif after it has been internationally recognized," Nada said, adding that every detail of batik had the value of a decent life that has to be maintained.

According to her the color and motif of batik also reflects the regions in Indonesia because every region has its own typical motif.

"Batik is found all over Indonesia and every area in the country has its own motif of batik," she said.

Editor: Jafar M Sidik

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Aceh to host international nurses conference

Antara News, Sat, May 21 2011

Banda Aceh (ANTARA News) - Aceh province is to host an international nurses conference next June 16-18, chairman of the local Nurses Association , Saifuddin AR, said here on Saturday.

Under the theme "Clinical Nursery to face the Future", the June conference would bring together nurses from around the world to share their experiences.

He said the event was expected to contribute to the betterment of health services to the people.

"The event is also a chance for Aceh province to show to the participants the current situation in the region," he said adding that up till now, 300 participants namely from Norway, Sweden, Thailand and Malaysia had confirmed their plans to attend the upcoming event.

Editor: Ruslan Burhani

RI elected to UN Human Rights Council for third time

Antara News, Sat, May 21 2011

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New York (ANTARA News) - Indonesia has been elected member of the United Nations Human Rights Council for the period 2011-2014, Indonesian Permanent Representative to the United Nations Hassan Kleib said here on Saturday.

The election which made Indonesia a member of the council for the third time was held last Friday (May 20) in New York with representatives of 188 out of the UN`s 192 member countries attending.

The meeting was was asked to elect 15 members of the UN Rights Council and, among a number of candidates, Indonesia won the highest number of votes, namely 184.

The 14 other countries elected to the council were Italy, Austria, Chile, Romania, Georgia, Costa Rika, Peru, Nicaragua, Congo, Botswana, Benin, Burkina Faso, India and Kuwait.

Hassan said Indonesia getting the highest number of support from UN members was an indication of the international world`s trust in the development of human rights protection in the country.

"It is also considered a recognition of Indonesia`s active role in initiatives related to the promotion of human rights protection in the Southeast Asia region such as the ratification of ASEAN Charter and the formation of ASEAN Intergovernmental Commission on Human Rights," said the ambassador.

Indonesia had been member of UN Rights Council two times before namely in the periods 2006-2007 and 2007-2010. The latest success also add the list of Indonesia`s active role in the UN`s 65th General Assembly Meeting from the period of September 2010-September 2011. Indonesia has been appointed as Vice President of the UN`s 65th General Assembly Meeting, Chairman of Commission on Population and Development, member of Governing Council UNEP and Governing Council UN Human Settlements Program (UN-HABITAT).

Indonesia is also listed as member of Commission on Sustainable Development (CSD), member of Commission on the Status of Women (CSW), executive board member of UN Women, executive board of UNDP/UNFPA and executive board member of UNICEF.

Indonesia is also member of Peace Building Commission (PBC), member of Council of the International Telecommunication Union (ITU), member of Council of the International Maritime Organization (IMO), member of the Council of Administration of the Universal Postal Union (UPU) and member of the Postal Operations Council of the UPU.

Editor: Ruslan Burhani

Winning bidders of three oil/gas blocks announced

Antara News, Fri, May 20 2011

Jakarta (ANTARA News) - The Indonesian government announced the three winning bidders for three oil and gas blocks auctioned through a regular mechanism on December 10, 2010 here on Friday.

They are Eni Indonesia Ltd. winning the bid for Arguni I Block in West Papua, Total E&P Activities Petrolieres winning the bid for South West Bird`s Head in West Papua and Pan Orient Energy Holding Ltd. winning the bid for East Jabung Block on the border of Riau, Jambi and South Sumatra.

The director general of oil and gas of the ministry of energy and mineral resources, Evita Legowo, said the fixed investment commitment for the three blocks in the first three years reached US$113.7 million.

"The signing bonus is US$31.5 million," she said.

The fixed investment commitment for Arguni I is US$86.5 million with the signing bonus of US$25 million. The investment commitment for South West Bird`s Head is US$19.5 million with a signing bonus of US$5 million, East Jabung US$7.725 million with a signing bonus of US$1.5 million.

Besides Eni, two other investors submitted their tender documents for Arguni I Block and for South West Bird`s Head, one investor besides Total submitted its tender document.

Pan Orient is the only one that submitted the tender document for East Jabung Block.

Evita said the fixed commitment for exploration consisting of geological and geophysical studies was US$4.17 million, for seismic and two dimensional surveys US$15 million and for drilling five exploration wells US$76 million.

The three blocks were part of offers made through a regular mechanism in the second round in 2010.

A total of 17 blocks had been offered through a regular bidding mechanism namely East Asahan, North Kuantan, East Jabung, South West Sumatra I, South West Sumatra II, North Merak, West Kangean and East Bankanai, West Sebuku Block, SE Mandar, Gorontalo Tomini, Tomini Bay I, Tomini Bay II, Tomini Bay III, SW Bird`s Head, Arguni I and Arguni II.

Evita said of the 17 blocks only 10 had attracted investors. "But four tender documents for four working areas have been submitted," she said.

Niko Resources Ltd. was interested om Tomini Bay II besides three other blocks. She said however that Niko could not meet the terms so that it could not be declared as the winner.

Besides the 17 blocks offered through a regular bidding the government has also offfered seven blocks through direct bidding in the second round namely Gurita, Sembilang, Marquisa, South Betung, Southern part of Sumatra, Damar and Arafura Sea II.

Editor: Aditia Maruli

Minister, ambassador launch Coral Reef and Climate Change Guide

The Jakarta Post, Jakarta | Fri, 05/20/2011

Maritime Affairs and Fisheries Minister Fadel Muhammad and Australian Ambassador to Indonesia Greg Moriarty on Friday launched the Indonesian version of the University of Queensland’s publication Coral Reefs and Climate Change: A Guide for Education and Awareness.

Fadel, working in collaboration with the University of Queensland, had arranged for the book to be translated into Indonesian.

“Australia is widely recognized for its world-class research in environmental sciences. We are pleased that through this book we will be able to contribute and work together in conserving the beautiful reefs of Indonesia,” Moriarty said in a release received by The Jakarta Post on Friday.

The book aims to increase awareness of coral reef science and preservation. It includes recent scientific research with informative images and covers topics including oceanography, coral reef biology and the implications of climate change.

It provides practical tools and recommendations to chart and measure the health of coral reefs and a program to encourage public involvement in reef conservation.

The original publication was launched in Australia in November 2009 and was produced and published by the Coral Watch Foundation at the University of Queensland.

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SBY Signs Decree on 2-Year Deforestation Moratorium

Jakarta Globe, Fidelis E Satriastanti, May 19, 2011

An area of rainforest in a South Sumatran national park, left, and a nearby
deforested peatland with two trees still standing. President Susilo Bambang
Yudhoyono has signed a decree banning the conversion of forests for two years.
(AFP Photo/Romeo Gacad)

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President Susilo Bambang Yudhoyono has finally signed the presidential decree declaring a two-year moratorium on new logging concessions in Indonesia.

The news was confirmed on Thursday afternoon by Agus Purnomo, a presidential staff for climate change.

The moratorium on new concessions in peatland and primary forests is part of a bilateral agreement with Norway, in exchange for which Indonesia will receive $1 billion in funding for Reducing Emissions from Deforestation and forest Degradation (REDD-plus) activities.

The moratorium was expected to begin on Jan. 1, but was delayed pending the signing of the presidential decree. It is not yet clear when the moratorium would officially go into effect.

Environment Minister Gusti Muhammad Hatta has previously said that despite the lack of a decree, the moratorium had been in effect all year.

“We’ve banned clearing of peatland and primary forests since the start of the year,” Gusti said in March. “We’ve already stopped issuing permits. The decree is only to provide legal certainty.”

Deforestation is one of the primary sources greenhouse gas emissions, which cause global warming. Indonesia, the world’s third-largest emitter, has one of the fastest rates of forest clearing.

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South Korea eyeing Sunda Strait bridge project

Antara News, Otniel Tamindael, Thu, May 19 2011

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Jakarta (ANTARA News) - As the sixth largest investor in around 1,400 projects in Indonesia at present, South Korea also has an interest to invest in the construction of Sunda Strait bridge.

With cumulative investment of US$3.35 billion over the past 10 years exuding oil, gas, and banking sectors, the country is also eyeing other infrastructure projects in Indonesia.

"South Korea is interested in a number of infrastructure projects in Indonesia, including Sunda Strait bridge development," Coordinating Minister for Economy Hatta Rajasa said in Jakarta on Thursday.

Speaking after a coordination meeting to discuss ways to overcome traffic congestion problems in several Indonesian major cities, the economic minister said South Korean interest in infrastructure projects in Indonesia was discussed at his meeting with the country`s Economic Minister Choi Joong Kyung in Bali on Wednesday.

It was in Bali on Wednesday that the governments of Indonesia and South Korea signed nine memorandum of understandings (MoUs) on investment and economic cooperation between the two countries.

Signed by the two countries` senior government officials and business representatives, the MoUs covered cover partnership agreements in the fields of of among others technology, textiles, machinery, maritime, aerospace, defense and solar photovoltaic.

According to Hatta Rajasa, the business partnership agreements could make Indonesia as South Korea`s main overseas investment hub in the world.

He said the MoUs included hydroelectric power plan projects in Lampung province, shipyard collaboration between Daewoo Shipbuilding and Marnie Engineering and PT Dok & Perkapalan Kodja Bahari to build projects for vessels and offshore facilities.

In addition, Hatta said that the South Korean economic minister also expressed his country`s support to the implementation of the Indonesian Economic Development Acceleration Master Plan (MP3EI). Hatta said.

"At the meeting, South Korean economic minister expressed his country`s support to the implementation of the Indonesian Economic Development Acceleration Master Plan (MP3EI)," Hatta said.

According to him, Choi Joong Kyung was specifically sent by South Korean president to Indonesia to discuss what projects to be undertaken.

"Specifically the country conveyed its interest to participate in the development of Sunda Strait bridge, and the country wanted it to be considered," Hatta said.

He added that South Korea was probably interested not only to be the contractor of Sunda Strait bridge project but also the other ones.

"But we have yet to come to term, just the interest to participate in the projects," Hatta said, adding that the value of investment in the projects reached around US$20 billion.

Earlier in February this year, Hatta said that of the total $20 billion investment plans, $12 billion was already in the pipeline while the remaining $8 billion remained to be discussed.

Some South Korean companies that have expressed commitment to investing in Indonesia are among others Hankook Tires US$1.2 billion investment plans to build tire production plants, Lotte Groups US$5 billion petrochemical factory in Banten, East Java, or in Kalimantan, as well as electronics giants LG and Samsungs estimated US$500 million to US$1 billion investment to expand their businesses in Indonesia.

The South Korean investment plans are part of the Indonesian governments efforts to raise funds in the process of realizing the 2011-2025 economic master plan.

Indonesia is really South Korean main overseas investment hub and therefore many more companies from the country have made commitment to investing in various sectors in East Java, South Sulawesi.

Earlier this month six South Korean companies made commitment to investing a total of of US$52 million in East Java which was formalized in memorandum of understandings (MoUs) singed by their heads before before East Java Governor Soekarwo and Gyeongsangnam-Do Governor Kim Do Kwan.

The six companies from South Korea are Bo-Kyung, C02 Byo, PT Leader Music, PT Seong Dong Abadi, PT Agro Deka Industri, PT Mitra Lestari Hanjaya.

Bo-Kyung, a company engaged in the footwear industry, is to invest US$15 million in Bangil, Pasuruan district.

PT Leader Music would invest US$2 million in the music instrument industry in Mojosari, Mojokerto district.

Also in Mojosari, PT Seong Dong Abadi is to invest US$ 10 million in the chemical industry.

PT Agro Deka Industri with an investment value of US$2 million is to operate in an agricultural industry in Bangil, Pasuruan, while PT Mitra Lestari Hanjaya would invest around US$20 million.

Soekarwo said six more companies from South Korea would also invest in East Java later and the memorandums of understanding was signed when he visited Seoul last April 5-7, 2011.

While in Makassar, South Sulawesi, South Korea`s PEM Korea Co.Ltd also plans to build a polyethylene pipe plant on two hectares of land at Makassar industrial estate in June this year.

PEM Korea Co. Ltd. President Director Jin Hwan Ho signed a cooperation agreement for the construction of the plant with South Sulawesi Governor Syahrul Yasin Limpo at the gubernatorial residence in Makassar on Monday, May 16, 2011.

"In the first phase of the project, we will build two production lines to meet demand in South Sulawesi and neighboring provinces. Later we will develop them into four lines that we project will be able to meet demand in the eastern part of Indonesia," Jin said.

He said PEM Korea Co.Ltd. would team up with two local companies -- PT Hanwoo and Bahana Cipta -- to build the plant which would cost US$5 million to US$10 million.

Editor: Aditia Maruli