China to build four cement factories in Indonesia

Antara News, Thu, June 30 2011

Jakarta (ANTARA News) - China is planning to construct four cement factories in Kalimantan and Papua with a total investment of 2.35 billion US dollars.

A memorandum of understanding (MoU) on the cement factories development plan was signed by the industry ministry`s Director General for Manufacturing Industry Base Panggah Susanto and a Chinese consortium here Thursday.

The Chinese consortium consists of Anhui Province`s State Enterprise Administration and Supervision Commission Director General Xu Chong Xin, Chairman of Prosperity Group Huang Bing Jun, and Guo Wen San of Anhui Conch Cement Company LTd.

The MoU signing was witnessed by among others Industry Minister Hidayat, Chairman of the Investment Coordinating Board (BKPM) Gita Wirjawan, and East Kalimantan Governor Awang Farouk.

Several projects included in the MoU are among other things a cement factory to be built at Tanjung, South Kalimantan, Toeti Rahajoe, the industry ministry`s downstream chemical industry director, said.

The planned total investment would reach 400 million US dollars, with an initial investment amounting to 250 million US dollar, she added.

The second factory will be constructed at Tanah Grogot (Paser), Sepinang, East Kalimantan, with a total production capacity of 10,000 klinker tons per day. Its investment will reach around 600 million US dollars.

Two other cement factories will respectively be built in Pontianak, West Kalimantan Province, and Papua Proivnce, with investments amounting 600 million US dollars and 750 million US dollars.

Industry Minister MS Hidayat welcomed China`s plan to build the four cement factories in Indonesia as the domestic demand for cement is expected to increase 7-10 percent.

He estimated the cement demand in Indonesia in 2015 will reach 55 million ton, while the total cement productions from the existing nine cement producers are recorded at 53 million tons. The factories are located at Java, Sumatra, Kalimantan, Sulawesi and Nusa Tenggara islands.

"The cement demand in 2010 in Indonesia was 40.7 million tons while production totaled 37.8 million tons. Demand for cement in the future is expected to increase 7-10 percent," he said.

Editor: Priyambodo RH

RI, EU ink agreement on 'open skies' aviation market

The Jakarta Post, Jakarta | Thu, 06/30/2011

Indonesia and the European Union (EU) signed a “horizontal agreement” on Wednesday on the aviation industry, aiming for a more liberalized or “open skies” aviation market  between the two parties.

“The Agreement between The Government of the Republic of Indonesia and The European Union on Certain Aspects of Air Services” was signed in Brussels on Wednesday evening by Indonesian Transportation Minister Freddy Numberi, Hungarian Ambassador to the EU Agnes Vargha and European Commission Vice President and commissioner responsible for transport Siim Kallas.

“The transportation minister said during the signing of the agreement that it was an important step to strengthen the relationship between Indonesia and the EU in the future, through the implementation of high standards of air transportation security and safety,” Indonesian Transportation Ministry spokesperson J. A. Barata said in a Thursday press release.

“The horizontal agreement between Indonesia and the EU will serve as a legal ground for bilateral agreements on certain aspects [of air services], such as aviation safety, taxation requirements and compliance with regulations on competitions,” he said.

Barata said the new agreement would complement existing bilateral agreements on aviation Indonesia had earlier signed with 18 member states of the EU: Austria, Belgium, Britain, Bulgaria, Czech, Denmark, Finland, France, Germany, Hungary, Italy, Luxembourg, the Netherlands, Poland, Romania, Spain, Sweden and Greece.

“The agreement is expected to encourage more intensified flows of goods and humans, increases in investments and the growth of tourism between the two parties, which in turn is expected to boost our national welfare and economic growth,” Barata said.

RI, US ink deal on environmental partnership

The Jakarta Post, Jakarta | Mon, 06/27/2011

The Indonesian Environment Ministry and the U.S. Environmental Protection Agency (EPA) signed a memorandum of understanding (MoU) here on Monday on partnership for environmental protection and sustainable utilization of natural resources.

“The MoU is a positive step in our efforts to tackle tremendous challenges in protecting our environment,” Indonesian Environment Minister Gusti Muhammad Hatta said after the signing.

He said the EPA had a great deal of experience in dealing with various environmental issues, such as rehabilitating mining sites and heavily-polluted areas.

EPA assistant administrator for international and tribal affairs Michelle DePass said the U.S. recognized Indonesia as an essential partner in strengthening global environmental protection efforts.

“We are pleased to cooperate with Indonesia on protecting human health and the environment in both of our countries,” DePass said. (rpt)

London Calling for Young Indonesian Innovators

Jakarta Globe, Sylviana Hamdani, June 27, 2011

From left, UK Ambassador to Indonesia Martin Hatfull; Perdana Karta Yudha,
 national winner in the screen category (2010); Muhammad Lukman, international
 runner-up in the interactive category (2010); and the ambassador’s wife,
Phyllis Hatfull. (Photo courtesy of the British Council)

Sometimes, all you need to do is get two creative people together in the same room and magic will happen. That’s a big part of what the International Young Creative Entrepreneur Awards are all about.

Take, for example, Indonesian fashion designer Oscar Lawalata. In 2009, he won the fashion category at the IYCE Awards. That gave him the opportunity to present his fashion collections and business ideas to British designers in London.

It was there he met renowned textile designer Laura Miles. Laura and Oscar quickly became friends due to her interest in tenun ikat, a hand-woven textile with tie-dye motif from Sumbawa, West Nusa Tenggara, that Oscar brought to London for his visit. She loved the uniquely Indonesian textile so much that she collaborated with Oscar to make a line of clothing using tenun ikat, which was presented at Jakarta Fashion Week in 2010.

“Oscar’s win was quite phenomenal,” said Elsa Sasmita, a program officer for the British Council. “One thing leads to another. We’ve heard that this year, Oscar will also collaborate with famed British milliner [hat designer] Justin Smith, whom he also met during his visit to London.”

Oscar is one of many success stories to come out of the IYCE Awards. Since their inception in 2006, the IYCE Awards have helped highlight and connect more than 650 creative entrepreneurs from Indonesia with UK businesses and industry leaders. The awards have also given Indonesian entrepreneurs global exposure and helped them broaden their international networks.

“The IYCE Awards are designed to develop talented local entrepreneurs,” said Keith Davies, country director of the British Council in Indonesia. “We’ll help them grow their businesses through this program. In return, they’re expected to develop creative industries in Indonesia.”

The IYCE awards honor entrepreneurs from four creative industries — design, fashion, interactive media and film. The British Council has selected three judges for each category of the competition. They are professionals, academics and members of the media. They include Arief Suditomo, editor in chief of TV station RCTI, in the film category, and designer Edward Hutabarat in the fashion category.

This year, the British Council decided to broaden the awards’ age limit, which had required entrants to be between 25 and 35 years old, to between 21 and 40. “We’ve been seeing a lot of qualified applications from beyond those [previous] ages,’’ Elsa said. “That’s why this year we decided to give more opportunities to more people by broadening the age limit.’’

From the 153 applications received this year, the judges have selected 18 finalists. Among them are Affi Assegaf, owner of femaledaily.com, fashionesedaily.com and mommiesdaily.com, who is a finalist in the fashion and interactive media categories; Titis Sapto Raharjo, owner and editor of Movieholic Production, in the film category; and Mufti Alem, owner of Greeneration Indonesia, which produces environmentally friendly products, for the design category.

“I’m very impressed with all the candidates,’’ Arief said. “They’re all highly creative and have brilliant ideas.’’

“Their creativity and business minds are excellent,’’ Edward said. “Some of their products are lacking a sense of cultural identity. This is very important, as that is what gives Indonesian products their competitive edge.”

The finalists will go through one more judging phase from July 3 to 6, during which they will receive business coaching from experts and visit successful entrepreneurs and businesses.

On the final day, the finalists will give a presentation to the judges regarding their products and business concepts.

“They should highlight five key points — entrepreneurship, leadership, innovation, market awareness and international outlook — in their presentations to the judges,’’ Elsa said.

The names of the winners will be announced on July 6 at the IYCE Awards night, which will take place at the Pekan Produk Kreatif Indonesia (Indonesian Creative Product Week) at the Jakarta Convention Center. The winner in each category will get a seven-day, all-expenses-paid visit to the UK to inspire them with new ideas and introduce them to industry leaders and possible business partners.

“This is what Indonesian entrepreneurs need now,” Edward said. “We have to build on our international outlook. The UK is the place to do that because they have many international artists who can open doors for our local industries, allowing them to reach the global market.”

This year, the winner of the fashion category will attend London Fashion Week in September, while the winner of the design category will attend the London Design Festival, also in September. The winner of the film category will attend the London Film Festival in October, and the winner of the interactive media category will attend the Power to the Pixel workshop the same month.

“We’ve also designed specific programs as well as prearranged meetings and special events in which the winners will meet people in the creative industries in UK,” Elsa said. “They can present their ideas and products to these people and perhaps build the foundations for future collaborations.”

“We hope to become a bridge between the UK and local Indonesian businesses,” Davies said. “We want to develop Indonesian creative businesses to grow in the international market.”

Edward was upbeat about the future. “All of these industries are fueled by our minds, a resource that will never deplete or run out.”

 

For more information on the IYCE Awards 2011, visit www.thebritishcouncil.org.

China agrees to support Indonesia's economic master plan

The Jakarta Post, Jakarta | Thu, 06/23/2011

Indonesia and China have agreed on the establishment of a working committee reflecting China's support of Indonesia's 2011-2025 Master Plan for the Acceleration and Expansion of Indonesian Economic Development (MP3EI).

“The agreement was made when Coordinating Minister for the Economy Hatta Rajasa, a special envoy to the Indonesian president, met with Prime Minister Wen Jiabao in Beijing,” the Indonesian Embassy in Beijing said in a press release on Thursday, referring to a meeting on Wednesday.

The statement said Hatta was accompanied by Indonesian Trade Minister Mari Elka Pangestu and Indonesian Ambassador to China and Mongolia Imron Cotan, among others.

It also said Hatta explained to Wen the MP3EI concept and its key position in Indonesia's economic development policy for the year 2011-2025.

Hatta expressed hope that China will take part in the implementation of the master plan, which has been apparently welcomed by Wen, Antara news agency reported.

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ANTARA journalists join multimedia training in Netherlands

Antara News, Wed, June 22 2011

Jakarta (ANTARA News) - A number of ANTARA journalists will attend a multimedia journalism training in the Netherlands under the StuNed scholarship provided by the Nuffic-Neso and the Dutch government.

To mark the beginning of the training program, Indonesian Nuffice-Neso scholarship coordinator Indy Hartono handed the scholarships to the ANTARA CEO Ahmad Mukhlis Yusuf here in Jakarta, Wednesday.

The training is scheduled to be held on June 27 - July 15, 2011 at the Radio Netherlands Training Center (RNTC), Hilversum, the Netherlands, aimed to increase ANTARA journalists` professional skills.

In the training, the participants would also have the chance to visit the Netherlands news agency Algemeen Nederlands Persbureu (ANP).

"RNTC is a training facility designed for journalists, the fourth opportunity for Indonesian journalists to participate in the event at RNTC with different topics according to the necessary needs," Indy said in her opening remarks.

Indy also said that StuNed supports journalists` capacity building to promote democracy.

"By studying at RNTC, the participants would not only learn theory but also to practice with proper equipment," Indy said.

The 16 participants in the three weeks training from from ANTARA News Agency are active journalists and one manager of ANTARA Journalism School (LPJA).

Besides the Jakarta based ANTARA journalists, there are also several those from bureaus attending this training such as from Pontianak, Makassar and Denpasar.

Upon their return from the Netherlands, they are expected to apply what they have gained there to develop antaranews.comportal, including the enrichment of content and sections within it.

In the long run, the knowledge gained will be disseminated through training courses organized by LPJA, particularly in the multimedia journalism field.

On that occasion, ANTARA CEO Ahmad Mukhlis Yusuf welcomed the training as an endeavor to strengthen ANTARA as a multimedia news agency.

"Besides the training, it is also expected to reinforce the mindset that is needed to manage the current media, supported by the latest IT infrastructure, the discipline of media players, and network expanding" he said.

With the LPJA manager attending the training, it is also expected that the training methodology can be an additional reference for the management of multimedia journalism education in ANTARA.

ANTARA News Agency also thanked NESO for their cooperation and the scholarships, the program might be continued each year, and involve the PWI (Indonesia Press Association), Press Council and other journalist organizations, ANTARA is ready to help facilitate, Mukhlis said.

Nuffic Neso Indonesia is a non-profit organization officially designated and funded by the Dutch government to deal with various matters relating to the Dutch higher education.

StuNed, stands for Studeren in Nederland, or study in the Netherlands, is a scholarship program that is part of the development cooperation policy of the Dutch government which aims to support the achievement of the "UN Millennium Development Goals" in 2015.

Editor: Bambang

Garuda Orders 25 Airbus A320 Planes to Replace Boeing 737 Fleet

Jakarta Globe, Femi Adi | June 22, 2011

PT Garuda Indonesia ordered 25 Airbus SAS A320s, including 10 A320neos, as it replaces a fleet of Boeing Co. single-aisle aircraft at its low-cost unit.

The contract, worth about $2.2 billion at list prices, also includes options for another 25 A320neo planes, Garuda Chief Financial Officer Elisa Lumbantoruan said by e-mail today.

The Citilink unit, which operates five 737s, will receive the new Airbus aircraft from early 2014, he said.

The deal builds momentum for the A320neo after Toulouse- based Airbus yesterday won 90 orders for the plane on the first day of the Paris Air Show.

Boeing is deciding between joining Airbus in offering a revamped single-aisle aircraft with new engines and developing an all-new model.

Garuda, Indonesia's biggest carrier, picked the Airbus planes because of lower operating costs and because they were more quickly available than Boeing models, Lumbantoruan said.

Slots for the 737 are sold out until 2016, Jim Albaugh, the head of Boeing's commercial-plane unit, said in an interview yesterday.

Airbus markets the A320neo as 15 percent more fuel efficient than current planes. Deliveries of the new aircraft are due to begin in 2015.

Citilink also plans to add four leased Airbus A320s this year to support traffic growth that's three times as fast as last year, Garuda said earlier this month. The unit flies to domestic cities including Jakarta, Surabaya and Denpasar.

Bloomberg

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Indonesian President Backs Away From Nuclear Power Plant Proposal

Jakarta Globe, June 18, 2011

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President Susilo Bambang Yudhoyono has poured cold water on the idea of building nuclear power plants in Indonesia.

Yudhoyono’s comments in Japan are likely to be a major blow to Indonesia’s nuclear lobby, which most recently proposed two sites in Bangka Belitung province for two nuclear power plants, claiming it had the support of local people.

Speaking during his visit to Japan on Friday, Yudhoyono was quoted by the Kyodo News as saying he had strong reservations about following through with the plans in Indonesia, which like Japan is susceptible to earthquakes and tsunamis.

“If we could build energy sources other than a nuclear energy plant, we will choose those kinds of energy sources,” Yudhoyono told Kyodo in Tokyo, adding that nuclear power was “very much debatable” and that safety must be ensured before going ahead.

“What happened in Japan last March can happen in Indonesia because (the two countries’) geography is very much similar,” he said in reference to the devastating earthquake and tsunami in Japan, which triggered an ongoing nuclear disaster.

Kyodo interpreted the remarks as meaning that Indonesia was “unlikely” to begin building a nuclear plant during his final term in office, which ends in October 2014.

Yudhoyono was quoted as saying that alternative sources of energy, including geothermal, solar and hydroelectric power, should be considered.

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RI to form community center to help Japanese tsunami victims

Antara News, Fri, June 17 2011

Tokyo (ANTARA News) - Visiting President Susilo Bambang Yudhoyono said the Indonesian government plans to form a community center to help Japanese quake and tsunami victims.

President Susilo Bambang
Yudhoyono. (ANTARA)

"The Indonesian government`s assistance will come in the form of community center useful for the public," Yudhoyono said in a joint press conference with Japanese Prime Minister Naoto Kan here on Friday.

The community center would serve as a reminder of good ties between the peoples, he said.

The Indonesian leader expressed his belief that Japan would soon recover from the devastating tsunami and make another glory in the future.

Meanwhile, Prime Minister Naoto Kan said the two governments had agreed to encourage cooperation in mitigating disaster risks as the two countries had high disaster risks.

On Saturday morning, Yudhoyono is scheduled to visit a tsunami-hit area in Miyagi prefecture to hand US$2 million assistance from the government.

During the visit, the President will convey a letter from Aceh children who survived the December 26, 2004 tsunami to Japanese children who had fallen victim to the March 11, 2011 tsunami engulfing northeast Japan.

The President is set to return home later in the day to end his six-day two-nation tour which also took him to Switzerland.

The President`s entourage included First Lady Ani Yudhoyono, Coordinating Minister for Political, Legal and Security Affairs Djoko Suyanto, Industry Minister MS Hidayat, Cabinet Secretary Dipo Alam, Chairman of the Investment Coordinating Board (BKPM) Gita Wirjawan, and Head of the Natural Disaster Mitigation Agency (BNPB) Syamsul Maarif.

Editor: Priyambodo RH

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Govt earmarks Rp65.2 trillion for drinking water projects

Antara News, Fri, June 17 2011

The development of drinking water facilities must be able to achieve the millennium development goals (MDGs) in 2015.

Jakarta (ANTARA News) - The government is preparing Rp65.2 trillion for the development of drinking water facilities in cities and rural areas up to 2014, a vice presidential spokesman said.

(ANTARA/Iggoy el Fitra)

"The development of drinking water facilities must be able to achieve the millennium development goals (MDGs) in 2015," Yopie Hidayat said here on Friday.

He said that people who on national scale would have access to drinking water would be about 68.87 percent, while at present only about 47.71 percent of the people already had access.

The presidential spokesman made the remarks after a meeting on public water facilities between Vice President Boediono and Public Works Minister Djoko Kirmanto here on Friday.

He said that the target of people to be covered by drinking water facilities in cities was set at 78.19 percent, while the present condition was still 49.82 percent.

In the meantime, the target in the rural areas in 2015 was set at 61.6 percent from the present condition of 45.72 percent.

He said that the total funds needed for the projects reached Rp65.2 trillion.

Editor: Ella Syafputri

INCO to build nickel factory in Bahodopi, C Sulawesi

Antara News, Fri, June 17 2011 

Palu, C.Sulawesi (ANTARA News) - PT Inco (Tbk) will realize its commitment to build a nickel processing plant in Bahodopi, Morowali district, Central Sulawesi province, before the end of June 2011, according to a clause in the work contract signed by the Indonesian government and PT Inco Canada in 1968.

"God willing, the groundbreaking ceremony to build the nickel refinery in Bahodopi will be held on June 22, 2011," a PT Inco official, Iskandar Siregar, said here Friday.

He refused to elaborate about the project but the Head of Bahodopi and Pomala`a Project, PT Inco, Kuyung Andrawina said the project`s cost was estimated at US$500 million.

According to Iskandar, the groundbreaking ceremony will be conducted by the Governor of Central Sulawesi Longki Djanggola, Morowali District Chief Anwar Hafid and the President Commissioner of Valeinco, the Brazilian company that controls the shares of PT. Inco, Peter Poppinga, as well as the CEO of PT Inco Tony Wenas.

On the occasion, PT Inco will also sign a memorandum of understanding with Bao Steel and PCI - two companies from China that will become partners to Inco in building the nickel factory.

The construction of the nickel plant in Bahodopi is also an investment strategy of the company to achieve an annual production of 90,000 metric tons compared with an average of 73,000 metric tons achieved in the last five years from the refinery in Sorowako, South Sulawesi province.

In connection with the visit of the Chairman of Valeinco Peter Poppinga to Morowali, Inco will also symbolically hand over the products development and the social activities which were funded with Inco`s social responsibility program that most of them are already enjoyed by the people of Central Sulawesi.

Those products include diesel engine power plant with a capacity of 1 mega watt, a unit of mini-hydro power plat, a health center building and its equipment, ten motorcycles for the health center as well as food packages to the local people living in the vicinity of the project site.

Editor: Jafar M Sidik

Indonesian students have widest opportunities in New Zealand universities

Antara News, Fri, June 17 2011

Makassar, S Sulawesi (ANTARA News) - Indonesian students have wider opportunities to study at various universities in New Zealand, an Indonesian official said here on Thursday.

Indonesian Ambassador to New Zealand Antonius Agus Triyono said many leading universities there offer wide opportunities for Indonesian students to study so long as they meet the admission requirements.

"There is no limit so long as they meet the admission requirements," Antonius said, adding that the universities in New Zealand are interested in more foreign students, especially from Indonesia.

According to him, there are more Malaysian and Vietnamese students there than those from Indonesia, and therefore he encouraged Indonesian students to study in the neighboring country.

"My job is to encourage as many Indonesian students as possible to study at New Zealand`s universities because the situation and the quality of education there is very good," Antonius said after a meeting with South Sulawesi Governor Syahrul Yasin Limpo.

The Indonesian ambassador to New Zealand met with the South Sulawesi governor to convey the offer of cooperation in education from Massey University.

Antonius said the university was offering three schemes of cooperation in diploma three program for nursing education with the students from South Sulawesi.

The cooperation was then signed by the South Sulawesi governor with first scheme is for the students who have finished the second year of nursing school in Makassar can continue the third year at Massey University in New Zealand and then to have an opportunity to work there for one to two years.

"The second scheme covers nursing students exchange program and the third is "sandwich program" or postgraduate program," said the Indonesian ambassador to New Zealand.

Editor: Bambang

International Power Announces Development Agreement for 220MW Geothermal Power Plant in Indonesia

Antara News, Wed, June 15 2011

AsiaNet 45080, LONDON, June 15 (ANTARA/PRNewswire-AsiaNet) -

International Power (IPR), PT Supreme Energy (Supreme Energy) and Marubeni Corporation have entered into a joint venture agreement for the development of the Rantau Dedap geothermal project located in South Sumatra Province.

This agreement follows the appointment of Supreme Energy as winner of the concession tender and the award of the geothermal mining licence. 

Supreme Energy, IPR-GDF SUEZ Asia and Marubeni Corporation constitute a partnership that brings a strong combination of technical skills, geothermal expertise and IPP development and experience to the power sector in Indonesia.

Supreme Energy will negotiate the Power Purchase Agreement with PLN before further progressing the development of the power plant.

The 220MW project in the Rantau Dedap region, in which IPR has a 35% interest, is part of the Indonesian government's second 10,000MW accelerated electricity development programme.  It will contribute to meeting the rising need for electricity in the country, using renewable energy resources.

International Power is one of the leading power developers in Indonesia with 1,280MW of operating assets and 815MW of capacity under construction in this market.

About International Power

International Power plc is a leading independent electricity generating company with 70,196MW (gross) (41,550MW net) in operation and a significant pipeline of 17,249MW (gross) (6,826MW net) projects under construction as at 31 December 2010. International Power is listed on the London Stock Exchange with ticker symbol IPR. Company website: http://www.iprplc-gdfsuez.com GDF SUEZ holds a 70% interest in International Power plc, further information about the GDF SUEZ Group is available at: http://www.gdfsuez.com

About Supreme Energy

Supreme Energy was formed in 2007 by professionals with extensive experience and knowledge of the energy service business in Indonesia who have been very active and directly involved in the oil and gas industry in geothermal development and operations in Indonesia for the past ten years.  Supreme Energy won the rights to carry out preliminary feasibility studies in three of the best geothermal areas in Indonesia and successfully secured the mining licences in all three in competitive tenders.

International Power Press and Investor Contact:

Richard Treacher, +44-207-320-8788

SOURCE: International Power plc

Chevron Bets on $30 Billion Volcanoes in Indonesian Rainforest

San Francisco Chronicle, Tuesday, June 14, 2011

June 15 (Bloomberg) -- Chevron Corp. drilled 84 wells to a depth of two miles beneath the Indonesian rainforest to tap steam, not oil and gas, that's trapped in the world's richest store of volcanic energy.

The geothermal plant, set among wild orchids and bamboo trees, uses 315 degree Celsius (600 degree Fahrenheit) heat to spin turbines 24 hours a day, generating electricity for Jakarta, a four-hour drive to the north. The oil driller, which pioneered geothermal energy 20 years ago in Southeast Asia's biggest economy, is about to see competition.

Companies from General Electric Co. to India's Tata Corp. are leading an investment boom in Indonesia that may climb to more than $30 billion, anticipating President Susilo Bambang Yudhoyono will honor his promise in February to boost clean- energy subsidies. The pledge has spurred the biggest geothermal spending spree in Asia and the largest outside of the U.S.

"There's great momentum in Indonesia's geothermal market, and demand for power is there," Mark Taylor, a geothermal analyst in Washington at Bloomberg New Energy Finance, said in an interview. "But there are regulatory risks for developers."

Chevron was burned by Indonesia in the late 1990s, when the state-owned utility forced it to renegotiate a power-purchase accord. The San Ramon, California-based oil company is now planning to expand its geothermal operations, helping Yudhoyono eliminate energy shortages that threaten his target for as much as 6.6 percent economic growth through his term's end in 2014.

Geothermal is central to Indonesia's push for alternatives to fossil fuels such as oil, which the country once exported and now must import, driving up costs and curbing growth.

'Geothermal Superpower'

The nation, described by clean-energy investor Al Gore in January as the first potential "geothermal superpower," plans 9.5 gigawatts of capacity by 2025. That's more than triple the U.S.'s geothermal use and about 33 percent of Indonesia's electricity demand, according to Bloomberg New Energy Finance.

Indonesia's 17,000 islands straddle the Pacific Ocean's volcanic "ring of fire," making the country to geothermal power what the Middle East is to oil -- the world's largest potential resource with 40 percent, or about 28 gigawatts, of the total.

Geothermal currently provides about 0.3 percent of global electricity and 0.2 percent of energy for heat, and with better policy incentives those levels could climb to 3.5 percent and 3.9 percent, respectively, the Paris-based International Energy Agency said yesterday.

Indonesia country has tapped about 4 percent of its potential and has orders for 2.3 gigawatts, second only to the U.S., New Energy Finance data show. A gigawatt, about equal to the output of a new atomic reactor, needs $2 billion to $4 billion of investment, Taylor said.

Synergies With Oil

"There's a remarkable opportunity for Indonesia to increase the amount of power generated from geothermal," said Stephen Green, former head of Chevron's Indonesia and Philippines operations and now its vice president of policy, government and public affairs. "There are synergies between oil and geothermal and it makes sense for us to exploit that,'' he said in an interview Chevron's Jakarta office.

Indonesia hasn't always appealed to foreign investors, and skepticism still goes beyond questions of how to uncork the boiling water that's trapped miles below the surface.

After the Asian financial crisis, state-owned utility PT Perusahaan Listrik Negara canceled power purchase agreements with companies including PT Paiton Energy, 40 percent owned by Irvine, California-based Edison Mission Energy, because it couldn't afford the contracts after the collapse of the rupiah.

Obama's Stepfather

Unocal Inc., which built the plant in the rainforest and was acquired by Chevron in 2005, was forced to renegotiate a deal to sell its power at 4 to 5 U.S. cents a kilowatt-hour instead of 6 cents to 7 cents. Unocal negotiated Indonesia's first foreign-partnership geothermal license in 1982 with the help of U.S. President Barack Obama's late stepfather, Lolo Soetoro, who worked for Unocal as a government liaison.

The rainforest plant was opened in Mount Halimum Salak National Park in 1992. Together with another about 100 miles west in Dajarat, Chevron lights homes for 4 million people. To capitalize on the new tariffs for geothermal electricity, the company is planning new plants including a potential 200- megawatt facility in South Sumatra.

Geothermal investors are again "starting to look at Indonesia as a place where they can do business," Ravi Krishnaswamy, a Singapore-based director for energy consultancy Frost & Sullivan, said in a phone interview.

Incentive for Government

Indonesia began consuming more oil than its domestic production capacity in 2004 as economic growth surged. It suspended membership in the Organization of the Petroleum Exporting Countries, or OPEC, in 2008.

Higher oil prices give the government more incentive to promote geothermal power, Chevron's Green said.

The generators use wells to tap underground deposits of scalding water. At Salak, hot water and steam are pumped from as deep as 3,211 meters (10,535 feet) below the surface through 54 kilometers (34 miles) of pipes to turn turbines to make power. Each well takes as much as 90 days to drill and costs up to $7 million, Chevron says.

There's no shortage of foreign interest. Sumitomo Corp., Japan's third-biggest trading company, is building a 110- megawatt plant in nearby Ulubelu. Australia's Origin Energy Ltd. is partnering with power company Tata in northern Sumatra.

"It's good for the environment and good for reducing our dependence on oil," Widhyawan Prawiraatmadja, General Electric Co.'s Indonesia company executive, said in a phone interview from Jakarta. "It also frees up tradable resources such as oil and gas and coal to be exported."

'Difficult' Deals

Yet geothermal deals in Indonesia remain "very difficult," according to BNEF. The government's decision to raise the price that state-owned utility PLN pays for geothermal power to up to 9.7 cents per kilowatt-hour may backfire, Vandana Gombar, a geothermal analyst at BNEF, wrote in a February report.

The utility usually opts for cheaper coal power that enables it to sell electricity to consumers at the government- mandated 6-7 cents per kilowatt-hour. The policy hinges on whether the government will continue to subsidize PLN at the higher prices because the increase can't yet be passed on to consumers, Gombar said.

The government's plan is a "pipe dream" until it's prepared to force consumers to pay more for their electricity, Ari Soemarno, former president of Indonesia's state-owned oil company PT Pertamina, said in an interview. The government can't afford to keep subsidizing power yet isn't brave enough to force consumers to buy at cost, he said.

--Editors: Todd White, Randall Hackley

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Major firms launch initiative to fight malnutrition in kids

Rangga D. Fadillah, The Jakarta Post, Jakarta | Tue, 06/14/2011

The Indonesian government welcomed on Monday a public private partnership (PPP) initiative to fight malnutrition in Indonesian children called Project Laser Beam (PLB), which is supported by the United Nations World Food Program (WFP) and several globally renowned enterprises.

The secretary of the Office of the Coordinating People’s Welfare Minister, Indroyono Soesilo, said the initiative was critical to help the country end child hunger and poverty, particularly in East Nusa Tenggara and Papua, two of the poorest provinces.

“The government of Indonesia is committed to lifting people out of poverty and giving every Indonesian child a healthy start in life. PLB will kick off very soon under the coordination of my office,” he said at a press conference on the sidelines of the World Economic Forum on East Asia in Jakarta.

He expressed his gratitude to Unilever, Kraft Foods, DSM and Global Alliance for Improved Nutrition (GAIN) as well as to three local companies — PT Tiga Pilar Sejahtera, GarudaFood and Indofood – for their participation in PLB.

“PLB is a creative new pillar in the fight to end child malnutrition, which we believe will be a major contributor to attain the Millennium Development Goals [MDGs],” said Indroyono who is also a candidate for the Food and Agriculture Organization’s director general for the 2012-2015 period.

PLB is a five-year, US$50 million project that aims to eradicate child malnutrition. The initial focuses of the initiative will be Indonesia and Bangladesh where child malnutrition rates are unacceptably high.

In Indonesia, more than 37 percent of under fives go to bed hungry, while in Bangladesh, the rate reaches 48 percent.

Pradeep Pant, Asia Pacific president director of Kraft Foods, said his company contributed around $10 million to the initiative. He elaborated that PLB would cover programs, such as teaching locals about sustainable farming, assisting them to create micro enterprises and providing nutrition education to mothers and children.

“In my opinion, this initiative is likely to succeed because it has three required pillars, which are sustainability, big scale and conducted repeatedly,” he said.

Unilever chief executive officer Paul Polman argued that participating in the initiative was very important for his company’s business. Ending child malnutrition and preparing children to be healthier and more prosperous in the future would be a way for the company to expand its market.

“Our business won’t work if the market doesn’t work,” he said.

The continued commitment of Unilever, Kraft Foods and several new local and international partners demonstrated confidence that the world was on the right track in fighting hunger in a new and innovative way, said the director for public policy, communications and private partnerships of WFP, Nancy Roman.

“When the government and businesses work together, we can do more than what we can do individually,” she said.

German Metro Chain to Enter Indonesian Market

Jakarta Globe, June 12, 2011           

Berlin. Germany's giant Metro distribution chain Friday announced it is extending its international business empire to Indonesia where it wants to open some 20 supermarkets.

(Photo courtesy of Metro AG's Web site)

Its Cash-and-Carry division will soon be opening a wholesale distribution superstore in Jakarta, the firm said in a statement.

Metro has set up a joint venture with Indonesia's Sintesa holding, but its shops will not be able to bear its international trade logo as others already operate under that name in Indonesia.

The firm said it was looking for a new name to go by in Indonesia.

Metro is already active in 34 countries and its Cash-and-Carry division operates some 700 stores in 30 of them.

Agence France-Presse

US strengthens commitment to renewable energy partnership with RI

Antara News, Thu, June 9 2011

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Jakarta (ANTARA News) - The United States government has strengthened its commitment to a renewable energy partnership with Indonesia, according to a US Embasy report.

Potential project developers, financial institutions, and government officials met this week to explore development of new and innovative clean energy project, aiming to remove barriers to the development of clean energy in Indonesia.

According to the press release received by ANTARA News, here Thursday, the clean energy initiative directly supports the U.S.-Indonesia Comprehensive Partnership to achieve energy security.

The Comprehensive Partnership is also working to promote prosperity, sustain the environment, strengthen democracy, and enhance understanding and security between Indonesians and Americans.

"Clean energy must be a part of Indonesia`s future. The United States stands ready to help Indonesia get to the green energy starting line," said US Charge d`Affaires Ted Osius.

The new project will coordinate with local governments, project developers, and financial institutions to promote clean energy and stimulate domestic funding for clean energy.

Besides, the project will also support a process of pairing potential project developers with financial institutions for clean energy projects.

By building on a US-sponsored regional program which developed four biomass and hydro power projects, and added 77 megawatts of energy for Indonesia, the new clean energy project will continue to build renewable energy opportunities.

By working in conjunction with other US government initiatives, this new clean energy project will help Indonesia continue to develop its clean energy and attain energy security.

Editor: Priyambodo RH

Malaysian investors to develop Pulau Bawah as tourist resort

Antara News, Thu, June 9 2011 

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Tanjungpinang, Riau Islands (ANTARA News) - Malaysian investors are ready to develop Pulau (island) Bawah in the district of Anamabas, Riau Islands province. into a marine tourist resort, the province`s governor, HM Sani, said.

"I have discussed it with the investors. They plan to invest Rp1.5 trillion to develop a tourist object in Pulau Bawah," he said here on Thursday.

He said Pulau Bawah has an undersea natural beauty which is good for being developed into a snorkeling and diving area.

"The development of Pulau Bawah is also aimed at developing a prime economic driver in the tourism sector," he said.

Sani said negotiations were still going on such as with the district administration of Anambar, the customs service and other offices concerned which are expected to conclude in September 2011.

"The development is expected to take 1.5 years to complete while the operation is expected to start in 2013," he said.

Sani said the marine tourist object is expected to be able to attract 5,000 foreign tourists at the initial stage and create jobs for the local population.

The governor said the province needs around Rp12 trillion to increase economic growth over the next five years.

The province`s economic growth at present was recorded at 7.2 percent. President Susilo Bambang Yudhoyono meanwhile has asked for the growth to reach 10 percent.

Sani said investors were also interested in developing tourist objects in Pulau Kepala Jeri and Pulau Janda Berhias in Batam with an investment of Rp2 trillion.

Riau Islands borders Vietnam and Cambodia in the north, Malaysia and West Kalimantan province in the east, Bangka Belitung islands and Jambi provinces in the south and Singapore, Malaysia and Riau province in the west.

The Sumatran province with a population of more than 1.6 millions consists of more than 2,000 big and small islets and some of them are not populated yet.

Editor: Jafar M Sidik