Indonesia is Google’s ‘Regional Focus’

Jakarta Globe, Shirley Christie, July 26, 2011

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Google, the world’s largest Internet-search provider, may make a “huge investment” in Indonesia to take advantage of the country’s enormous market potential, a government official said.

The Internet giant would focus its Southeast Asian investment on Indonesia, Gita Wirjawan, chairman of Indonesia’s Investment Coordinating Board (BKPM), said on Monday.

Google executive chairman Eric Schmidt said “Google wants to invest, and based on their calculation it would be bigger than its previous offices in Southeast Asia,” Gita told a press conference in Jakarta.

“I do not know yet whether it is going to be $100 million or more, but the investment would definitely be bigger than [the amount spent] in Singapore and Malaysia,” he said

Google could set up operations in Indonesia, Gita said, but the company needed to study the potential for revenue from advertising in the country and the establishment of a data center.

Those matters are being discussed with the Communications Ministry, he said.

Google’s global brand and innovative reputation means the company’s presence would encourage other investors to do business in Indonesia, Gita said.

BKPM forecasts total foreign and domestic investment hitting Rp 240 trillion ($28 billion) this year, up 15 percent from 2010.

Gatot Dewa Broto, a spokesman for the Ministry of Communications and Information Technology, told the Jakarta Globe the ministry welcomed Google’s plan and has not imposed any requirement for the company to establish a data center locally.

Schmidt met Indonesian Vice President Boediono last Friday to inform him of the company’s plan to open a representative office in Indonesia by next year.

At an entrepreneurial summit in Bali, Schmidt said Indonesia would have an “Internet explosion” that would change the country for the better.

“There are 50 million small businesses in Indonesia. Just numerically those will be the engine of growth for the future economy,” he said.

Other foreign companies have already established local businesses to appeal to Indonesia’s Internet users. Yahoo has been operating in Indonesia since early last year.

Indonesia has about 40 million Internet users and is home to Facebook’s second-highest number of subscribers.

Global research firm Frost & Sullivan found Indonesia had 194 million wireless subscribers at the end of last year, representing a penetration rate of about 81 percent. About 80 percent of mobile users are using Internet-enabled hand-held devices.

Indonesian advertisers spend less than 2 percent of their budgets on online promotions, meaning the online advertising industry here has significant space for expansion.

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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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To boost ties, Sweden to open trade office in Jakarta

Veeramalla Anjaiah, The Jakarta Post, Jakarta | Sun, 02/06/2011

In line with the growing economic interaction between Sweden and Indonesia, Stockholm will open its first ever trade office in Jakarta on Monday, the Swedish ambassador to Indonesia says.

“Our trade minister Ewa Bjorling will formally inaugurate the new trade office on Monday,” Ambassador Ewa Polano told The Jakarta Post on Sunday.

Trade between the two countries currently hovers around US$1 billion, a huge jump from the $607.86 million in 2005. More than 40 Swedish companies currently operate in Indonesia.

Minister Bjorling and her 25-member business delegation were scheduled to arrive in Jakarta on Sunday.

Besides opening the trade office, Bjorling will address a seminar, “Green Growth for Indonesia”, on Tuesday. She will also hold discussions with Environment Minister Gusti Muhammad Hatta, Public Works Minister Djoko Kirmanto and Trade Minister Mari Elka Pangestu.

Bjorling plans to meet with ASEAN Secretary General Surin Pitsuwan on Tuesday.

China lauds RI`s role in preserving regional stability

Antara News, Thursday, December 9, 2010

Jakarta (ANTARA News) - A Chinese Army officer has lauded Indonesia for its role in preserving regional stability particularly in the Malacca Strait and the South China Sea.

Chief of the General Staff of the People`s Liberation Army Lt. Gen. Qi Jianguo made the remarks at a meeting with his Indonesian counterpart, Vice Admiral Edy Harjoko, at the National Defense Forces Headquarters here on Wednesday.

Jianguo said Indonesia`s great role in the region was inseparable from its close cooperation particularly with other ASEAN member states.

On the occasion, he also expressed China`s keen interests in enhancing cooperation with Indonesia particularly in the defense and military fields.

He underscored the need for the two countries to enhance cooperation through more concrete programs in the areas of education, training, information exchange and technological transfer.

He further expressed hope that China, along with ASEAN member states could always work closely in preserving regional stability particularly in the South China Sea.

Meanwhile, Vice Admiral Edy Harjoko said military cooperation between the two countries had so far run well. The cooperation covers human resources development through exchange of visits by officers, education and training for both officers and non-commissioned officers.

South Korea to send investment mission to Indonesia

Alfian, The Jakarta Post, Jakarta | Fri, 10/01/2010 2:21 PM

ASEAN-Korea Centre, an international organization established to promote economic and socio-cultural cooperation between ASEAN countries and Korea, is dispatching an investment mission to Indonesia from Oct. 3 to Oct. 6, 2010 in search for investment opportunities in sectors of ship parts, ship design and construction machinery.

In its press statement sent on Friday, the ASEAN-Korea centre said that the mission would comprise of 20 Korean company representatives and related experts and they would visit various government agencies and local companies in the ship parts, ship design and construction machinery industry sectors and have business meetings with local business.

In Jakarta, the mission members will be informed of the latest investment policies by Ministry of Industry, Indonesia during “Business Forum on Investment Opportunities in the Field of Ship Building Industry and Construction Machinery”, which will be held in cooperation with Indonesia Investment Coordinating Board (BKPM).

On Oct. 6 the mission members will be briefed on the latest investment policies and opportunities by Batam Indonesia Free Zone Authority. Also, they will have business meetings with Indonesian and Singaporean businessmen which are expected to provide an opportunity to better understand local markets and obtain information on investment potentials. In addition, there will be visits to the local companies of ship parts, ship design and construction machinery industries in Batam.

Currently, South Korean has invested in more than 1,000 projects covering various businesses, including electronics, food, construction, chemicals, and airline services. South Korean companies realized investment in Indonesia reached a total of $624.6 million in 2009.

Bali to host Asia-Pacific conference on disaster mitigation

Antara News, Monday, September 6, 2010 13:53 WIB

Jakarta (ANTARA News) - Bali is to host an Asia-Pacific Association on Emergency and Disaster Medicine (APCEDM) Conference in 2010, the organization`s chairman Dr Abdul Rajak said here on Monday.

"Of the two other candidates, namely Banda Aceh and Jakarta, the organization`s board of directors choose Bali," he said adding that he could not yet mention the exact date of the conference.

Rajak added the conference would consist of a three-day seminar and one-day simulation to test disaster management at district, province, national and international levels.

Though the conference would mainly focus on post-disaster medical and health care , Rajak said, the coordinating committee would still involve the National Disaster Mitigation Agency (BNPB) in planning the conference.

The Asia-Pacific region is among the most disaster-prone parts of the world. Disasters hitting this region are mostly landslides, volcanic eruptions, earthquakes and tsunami.

This condition has made governments in the region more and more aware of the need to unite in facing natural disasters.

Last year, the military chiefs of 24 Asia-Pacific countries agreed to enhance cooperation in tackling the effects of natural disasters and epidemic diseases, an Indonesian military official said.

The agreement was reached at the 12th Chiefs of Defense (CHOD) Conference in Hawaii, United States, last October 26-29, 2009, Indonesian National Defense Forces (TNI) Chief Gen Djoko Santoso said.

"Several issues were discussed in the forum, including post-disaster management and ways to tackle epidemic diseases," Djoko said, adding that the three-day meeting also agreed to improve cooperation in anti-piracy operations.

Panasonic Plans Hub in Indonesia

Jakarta Globe, Camelia Pasandaran | August 25, 2010

Jakarta. In a meeting with President Susilo Bambang Yudhoyono in Jakarta on Wednesday, the head of Japanese consumer electronics giant Panasonic confirmed that it planned to move its production base to Indonesia, senior Indonesian government officials said.

Panasonic plans to relocate factories in China to
Indonesia, citing drastically lower labor costs.
(EPA Photo)

Gita Wirjawan, chairman of the Investment Coordinating Board (BKPM), said Panasonic president Fumio Ohtsubo told Yudhoyono and Vice President Boediono in separate meetings that the company would move its factories from China and Vietnam to Indonesia to take advantage of lower wages and the booming economy, which is driven by consumer spending.

Gita first revealed that Panasonic was considering such a move in March.

Industry Minister MS Hidayat, who was present at Ohtsubo’s meeting with Boediono, said Panasonic was upbeat about the country’s economic prospects, and would close its factories in China and relocate them here. He did not offer a timeframe or investment value for the move.

“They are committed to making Indonesia the production base for exports as well as for the domestic market,” Hidayat said.

This week, the Wall Street Journal reported that the average wage for factory workers in China is about three times more expensive than in Indonesia — $413 versus $129 a month — while wages in Vietnam were $136.

The report cited research by JP Morgan, CEIC and the International Labor Association.

Rachmat Gobel, the chairman of Panasonic Gobel, the electronics firm’s local unit, also declined to cite an investment value for Panasonic’s factory relocations, saying only that the parent company had been continuously investing in Indonesia, and had already brought the total to $400 million.

Panasonic’s three factories in Indonesia — in Jakarta, Surabaya and Batam — make home appliances, personal electronics and batteries.

“Its current annual turnover [in Indonesia] is $850 million,” Gita said, adding that it is expected to surge to $3 billion by 2014, partly because of its recent acquisition of Sanyo.

Yopie Hidayat, a spokesman for Boediono, said Panasonic told the vice president the company may also develop solar panels domestically.

“It plans to turn houses into self-sufficient energy houses with zero emissions,” Yopie said. “They made the prototype in Japan but are considering whether to develop the industry there or in Indonesia considering the skilled-laborers here and the availability of abundant solar energy. The vice president supports the plan to make Indonesia as the production base, not only as the market.”

“They’re still considering the solar panel development here,” he added. “But the LED factories have been here and there’s also plans to extend the battery production factory.”

Boediono encouraged Panasonic to develop solar energy as it could supply remote regions of the country with electricity.

Gita and Hidayat both said Panasonic’s decision was expected to convince other companies to make Indonesia their production base.

Jakarta Globe Wins Major Asian Award for Journalism

Jakarta Globe | August 05, 2010

Jakarta. The Jakarta Globe on Wednesday night won another award for journalistic excellence, this one for a special supplement highlighting the many water problems facing the capital.

“Water Worries,” published in July 2009, picked up a bronze award for best news coverage (newspaper special section) at the Asia Media Awards, held in Kuala Lumpur. The awards are run by prestigious industry group the World Association of Newspapers and News Publishers (WAN-IFRA).

The special supplement — containing stories written by Dewi Kurniawati, Globe contributing editor Joe Cochrane, investigative writers Hera Diani and Kafil Yamin and news reporter Putri Prameshwari — outlined Jakarta’s troubles in dealing with water-related issues, including ensuring steady supply, dealing with sewage and garbage cast into rivers and canals, and flooding caused by rainfall and coastal tides.

The award is the latest of more than a dozen reporting, photography and design accolades for the paper this year. At the Society of Publishers in Asia Awards for Editorial Excellence in June, “Water Worries” received another award for excellence in special coverage.

“All these recognitions serve to inspire the entire news organization to work harder at providing our readers with first-rate journalism, the kind of reporting that we hope makes a difference,” Globe deputy chief editor Bhimanto Suwastoyo said.

The gold in the Asian Media Awards special section category went to the United Arab Emirates newspaper Gulf News for coverage of boxer Manny Pacquiao.

WAN-IFRA is a worldwide organization that supports newspapers in pushing for the defence of press freedoms, high standards of journalism and best practices in publishing technology. The Asia Media Awards also recognize the region’s best newspaper and magazine front cover designs, photography and printing quality.

“Water Worries” is one in a series of four special reports on Jakarta’s social and infrastructure challenges that the Globe has published. The others cover preserving Kota Tua in North Jakarta, traffic woes and environmental sustainability. You can download them HERE.

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RI to host Asean disaster relief exercise in March 2011

Antara News, Friday, July 23, 2010 20:20 WIB

Jakarta  (ANTARA News) - Indonesia is to host an ASEAN Regional Forum (ARF) Disaster Relief Exercise in March 2011 in Manado, North Sulawesi.

The joint exercise co-chaired by Indonesia and Japan would aim to strengthen international cooperation and increase the capacity of related government officials to handle post-disaster situations.

Indonesian Foreign Affairs Minister Marty Natalegawa and his Japanese counterpart , Katsuya Okada, made the announcement in Hanoi, Vietnam, on Friday during the ARF`s Foreign Affairs Ministers meeting.

The idea to hold the exercise in Manado was raised since Indonesia was considered very experienced in handling post-disaster situations as it was prone to seismic upheavals due to its location on the so-called Pacific "Ring of Fire", an arch of volcanoes and fault lines encircling the Pacific Basin.

Officials from 27 countries including the European Union were expected to participate in the exercise.

The main scenario to be used in the exercise would be an earthquake measuring 7.3 on the Richter scale which struck Wori district, North Sulawesi, followed by a tsunami wave that caused many casualties and damage to the area.

The exercise would focus on coordination among officials at the disaster mitigation office, evacuation and identification of victims, logistics distribution, hospitalization system after the disaster and relocation program.

Some preparatory activities had already been started by related parties in Indonesia, namely the Foreign Affairs Ministry, National Disaster Mitigation Board (BNPB), Defense Ministry, National Defense Forces and the government of North Sulawesi.

During the 16th ARF Ministerial Meeting in Thailand last year, Indonesia announced its intention to host a disaster relief exercise.

RI, Canada expand ties beyond G20

Lilian Budianto, The Jakarta Post, Jakarta | Tue, 06/29/2010 10:25 AM

The rise of a resilient Asia in the face of the global economic downturn has brought many major countries knocking on Indonesia’s door in recent years, including the US, China and Canada.

Ties between Indonesia and Canada are largely underpinned by economic contacts, but Canadian Ambassador to Indonesia Mackenzie Clugston said recently in an interview that both countries had expanded relations beyond the economy along with the rise of Indonesia as a democracy.

“Our principle interest in Indonesia is that it is a major G20 country, geographically speaking it is one of the largest countries in the world, it occupies a strategic area in Southeast Asia, it is a democratic, multicultural and multi-religious society, it plays an increasingly [important] role,” he said.

Canada will celebrate Canada Day on July 1.

Clugston said Canada had poured a significant amount of development grants into Indonesia

through the Canadian International Development Agency (CIDA). Ottawa has disbursed US$79.39 million in grants from 2008-2009 for sustainable economic growth programs.

Relations between the two G20 members has received more attention as Toronto hosted the G20 summit last weekend.

Clugston said Jakarta and Ottawa were studying the possibility of forging a comprehensive partnership.

“There idea is there but I think we want to be sure that we can deliver on all commitments before we enter into the partnership. We want to make sure that it is not just a piece of paper.”

On the bilateral front, Clugston said future cooperation would have to include expansion of economic ties, security areas, a higher level of dialog or cooperation on development and education.

Indonesia has increasingly made its presence felt to the West after the 1998 reforms that ended 32 years of dictatorship under Soeharto. Indonesia is home to the largest Muslim population in the world and is the third-largest democracy.

Indonesia has also spearheaded democracy enhancement in Southeast Asia as major countries in the region face challenges in improving their democratic institutions.

Clugston said Canada’s foreign policy toward Asia largely focused on China and India but Indonesia was also a major point of attention because it was at the center of ASEAN. Also, Indonesia will chair ASEAN next year and is expected to focus attention on democracy, human rights and other economic and security issues as well.

“Indonesia can play a leadership role in promoting human rights in the region,” he said.

Although ASEAN has seen its status rise along with the rest of Asia, the ASEAN’s role in the G20 was questioned when Ottawa did not immediately extended an invitation to the grouping.

ASEAN’s secretary-general and chair were invited to previous G20 summits. Clugston said Canada did not mean to exclude ASEAN representatives to the biannual meeting.

“Prime Minister [Stephen Harper] was determined that the G20 would be a small group of people. His concern in Pittsburgh was that there were around 45 or 50 people around the table and it was too large a group to develop a consensus. We are not excluding ASEAN, the African Union or other groups, but we want to look at a model of small decision making, what size is optimum,” he said.

RI to host 7th Asian court conference

The Jakarta Post, Jakarta | Fri, 06/18/2010 10:16 AM

Indonesia’s Constitutional Court will host the 7th Conference of Asian Constitutional Court Judges, which will take general election laws and constitutional practices as its theme, from July 12 to 15.

“A nation cannot restrain nor avoid the establishment of democracy and both law and human rights enforcement,” Constitutional Court chief justice Mahfud M.D. said Thursday.

He explained that nations needed to discuss each country’s past experiences with electoral systems and constitutional practices, then to find future plans to facilitate development.

Twenty-five countries are expected to participate at the conference, including Indonesia, Azerbaijan, Bangladesh, Brunei, Cambodia, Kazakhstan, Laos, Malaysia, Mongolia, Nepal, Pakistan, the Philippines, South Korea, Tajikistan, Kyrgyzstan, Thailand, Timor Leste and Uzbekistan. The conference will also invite non-Asian countries: Austria, Germany, Turkey, Chile, Colombia, Mexico, Egypt and Morocco.

“At the conference, we will discuss elections issues and shortcomings of electoral courts in each country,” Mahfud said.

Mahfud said in terms of settling election disputes, Indonesia’s experience was considered exemplary by other countries.

“The Indonesian Constitutional Court has resolved 640 electoral disputes in the 2009 presidential and regional elections peacefully,” he said. Of these cases, the court delivered rulings in 70 cases that consequently changed the election results, Mahfud said.

He claimed that a peaceful settlement of electoral disputes through courts was rare in other countries.

Mahfud explained that Indonesia’s elections proved that laws could be drafted to settle any disagreement. He said he believed the Constitutional Court contributed to the country’s democracy.

However, Mahfud admitted there were still incidents of electoral violations, such as vote buying, unfair nomination processes and nepotism.

Eight Asian countries at the conference will also establish the Association of Asian Constitutional Courts and Equivalents Institutions by signing the Jakarta Declaration, Court secretary-general Janedjri M. Gaffar said.

The eight countries are the Philippines, Malaysia, Thailand, South Korea, Mongolia, Kyrgyzstan and Uzbekistan, as well as host Indonesia.

The objectives of the association are to protect human rights, promote democracy and supervise the implementation of the law, as well as overseeing the independence of constitutional courts and other similar judicial institutions.

“I hope the formation of the association can improve our role,” Mahfud said. (ipa)

Second ASEM Conference to be held in Yogyakarta

Antara News, Friday, May 21, 2010 17:10 WIB

Jakarta (ANTARA News) - Indonesia is to host the 2nd ASEM (Asia Europe Meeting) Development Conference co-sponsored by the European Commission, in Yogyakarta on May 26-27, 2010, an official said here, Friday.

The dialogue will focus on social cohesion and the future of international cooperation for development in a forum consisting of 43 member countries Asia and Europe, the the EU (Europe Union) and the ASEAN Secretariat.

Foreign Affairs Ministry`s Director of inter America-Europe cooperation, Dian Wirenjurit said that the meeting will be discussing several topics such as the future of Asia-Europe cooperation in sustainable development.

Besides it will also discuss climate change and low carbon development, social cohesion and its role in sustainable development and the role of policy coherence in sustainable development.

Australia and Russia will be attending the conference which will be two member countries in ASEM, besides the EU also invited several countries as observers namely Tajikistan, Srilanka, Hong Kong and Bangladesh.

The second ASEM conference is planned to be opened by the State Minister for National Development Planning, Prof. Dr. Armida S. Alisjahbana and the EU Commissioner for Development Mr Andris Pielbags.

In the meeting, Indonesia would also emphasize the Jakarta Commitment: Aid for Development Effectiveness in Indonesia, Indonesia`s Road Map to 2014 in bilateral aid management cooperation and also to make an explanation on climate change and low carbon development.

The Conference will aim to produce a statement with recommendations. On the basis of this work, it would become possible to design a political document which could be submitted for consideration of the ASEM members and through them, for approval of the ASEM.

ADB, FMO of the Netherlands to Share Risk on Trade Finance in Asia

Asian Development Bank

MANILA, PHILIPPINES - The Asian Development Bank (ADB) today signed a risk distribution agreement with the Netherlands Development Finance Company (FMO), which will lead to greater and wider support for trade in ADB's developing member countries.

The risk distribution agreement is part of ADB's $1 billion Trade Finance Facilitation Program (TFFP), which provides loans and guarantees through, and in conjunction with, international banks and ADB's developing member country banks to support international trade transactions.

Read the full news release.

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Foreign doctors must master Indonesian: Minister

The Jakarta Post, Jakarta | Sat, 03/13/2010 5:11 PM

The Ministry of Health has issued a regulation governing migration of foreign doctors in the country in the wake of the China-ASEAN free trade agreement, which includes proficiency in Indonesian language.

Health Minister Endang Rahayu Sedyaningsih said on Saturday the government imposed strict requirements on foreign doctors who wished to operate in the country that she had no worry about the impacts of the free trade regime on health sector.

“The impacts of the CAFTA on health sector are not that serious, but visible, such as migration of foreign doctors to the country,” she told Antara during a visit to Semarang.

The regulation requires the foreign doctors to master Indonesian and register themselves with the Health Ministry. It also says the foreign doctors can work only at institutions appointed by the government, but are prohibited from running private health clinics.

The work permit for the foreign doctors ranges from two years to five years.

Jakarta’s role in ASEAN could make it the regional hub

Abdul Khalik, The Jakarta Post, Jakarta | Mon, 02/01/2010 10:13 AM

Kebayoran Baru, a residential area in South Jakarta for members of the capital’s upper class may get a lot busier and see more expatriates moving in soon.

Blok M, with its popular amusement center and shopping malls, could be an attraction for many foreigners, not only Japanese or Koreans, who have become traditional customers of the nightclubs and bars dotting the area.

Officials are saying this might be the beginning of a busy period as more countries will appoint their representatives to ASEAN, whose secretariat office is located at the heart of the area.

Currently, 33 countries, including major economies, such as the US, UK, Germany, China and India, have sent their own ambassadors to ASEAN in addition to the ambassadors posted to the diplomatic missions.

ASEAN deputy secretary-general Bagas Hapsoro said Sunday that although several countries still attached their ASEAN representatives to embassies in Indonesia, most of them will have their own office as relations become more complex, with the expectation that they will open their office close to the Kebayoran Baru premises where the ASEAN Secretariat is located.

He went on to say that as interest in ASEAN grows, so too will the number of permanent missions, with Kebayoran Baru expected to be a prime location.

Also, he added, more jobs will be available as, for example, if one representative brings five foreign assistants and employs several other local workers, then hundreds or even thousands of jobs could be created.

“Many representatives are looking for offices and residences in the areas surrounding the secretariat,” Bagas, the outgoing Indonesian ambassador to Lebanon, said.

“These developments can only benefit ASEAN’s centrality and Indonesia’s primary role as a member and host of ASEAN,” he said.

ASEAN has established free trade agreements (FTAs) with many countries, including China, Australia, New Zealand and India, with many more to be implemented soon.

“The FTAs will make ASEAN and its secretariat much busier. And the world will look to Jakarta as an important city,” Bagas said.

Interest is rising among more distant countries in Africa, Latin America and the Middle East, he said.

Foreign Ministry spokesman Teuku Faizasyah agreed that the Dec. 15, 2008, ASEAN Charter, soon to come into force, has strengthened the position and relevance of the grouping as a rules-based organization, both in regional and international arenas, while giving Jakarta huge leverage as the host of the grouping’s secretariat.

“It will bring huge financial benefits to the Indonesian economy. It will also shape Indonesia’s changing role within the region and the entire world,” he said.

Faizasyah underlined, however, that to reap these benefits Indonesians should enhance their awareness of the new environment that requires Indonesians to be more open and to have a cosmopolitan outlook.

“We have been trying to raise awareness of people across the country through seminars, talk shows and other activities so that more Indonesians know about ASEAN and its impact on them,” he said.

As far as the government is concerned, Faizasyah said a national secretariat under the command of a director general has been established to coordinate other ministries’ activities within ASEAN.

“Indonesia has also sent its permanent representative to ASEAN to channel diplomatic efforts to lobby for our national interests,” he said.

The Government of Indonesia, Bagas said, has agreed to donate more land to enlarge the current ASEAN Secretariat office to prepare for more activity within the grouping.

The ASEAN Secretariat, which the ASEAN leaders have entrusted with the task of implementing the ASEAN Charter, has more than 270 employees, of whom only 70 are professionals, serving 10 countries with a combined population of 585 million people, Bagas said.

“By comparison, the EU employs 14,000 people serving 27 members with a smaller combined population,” he said, adding that Brussels, the headquarters of the EU, has evolved from being a sleepy Belgian town into the robust capital of a new Europe.

“It is time for us to think of Jakarta as an international city by defining it as the new ‘Brussels of the East’, and this includes more support to enhance the role of the ASEAN Secretariat. We should take a fresh look at how we can accommodate both ASEAN and non-ASEAN citizens who work to sustain the centrality of ASEAN,” Bagas said.

Swedish businessmen to visit Indonesia

Antara News, Saturday, January 30, 2010 17:40 WIB

Jakarta (ANTARA News) - President directors of 35 Swedish companies will visit Indonesia on January 30 - February 2, 2010 to identify investment and business opportunities in the country, Swedish Embassy said in a media release here on Friday.

This will be the biggest Swedish business delegation ever to visit Indonesia. The visit is jointly organized by the Swedish Embassies in Jakarta and Singapore, in cooperation with the Swedish Business Associations of Indonesia and Singapore.

During their stay in Indonesia, the delegation is expected to meet with high level officials from relevant ministries and authorities, economists, the European Union delegation, as well as with representatives of the Indonesian and Swedish related business community.

Ambassador of Sweden to Indonesia Ewa Polano, heading the delegation, says that the Swedish businessmen are very happy that so many Swedish communities have signed up.

"It has been our ambition to present the Swedish president directors a visiting program that gives a unique opportunity to improve their understanding of the impressive economic and political developments in Indonesia over the last years," she said.

Indonesia has made substantial progress in the field of democracy, economic reforms and security over the last decade. Its location and size make Indonesia strategically important: the fourth largest country in the world and the largest in ASEAN.

Having been worst hit by the Asian economic crisis in 1997-98, Indonesia has now outperformed other major economies in Southeast Asia in 2009 and in fact most other countries in the world.

Indonesia to launch infrastructure finance firm

Reuters, Wed Jan 27, 2010 12:27pm GMT

JAKARTA, Jan 27 (Reuters) - Indonesia will launch a new private infrastructure financing company within the next two months to speed development of sorely needed infrastructure, but with initial capital of just $170 million.

Poor roads, energy and transport infrastructure have limited growth and investment in Southeast Asia's largest economy, but many vital infrastructure project proposals have stalled due to a lack of funding.

The government said on Wednesday it would launch in March PT Indonesia Infrastructure Finance, to provide funding, equity participation or financing guarantees for private infrastructure projects.

"We have already signed an agreement with some donors to help with initial capital," the new firm's interim director, Emil Dardak, told reporters.

"We are aiming for some long term infrastructure projects including power, toll roads, water, seaport and airport projects and they must be commercially viable," Dardak said, adding the agency is yet to consider any infrastructure project proposals.

It has initial capital of 1.6 trillion rupiah ($170.3 million) from shareholders including state infrastructure financing agency PT Sarana Multi Infrastruktur, the World Bank's International Finance Corporation and the Asian Development Bank (ADB).

Dardak also said the agency has secured the equivalent of 2 trillion rupiah convertible subordinated loans from the World Bank and Asian Development Bank (ADB), maturing in 20-25 years to help the agency's financing business.

"Later on they will need to raise much more funds, by issuing some bonds for example," said Anton Gunawan, chief economist at Bank Danamon in Jakarta. "It's not enough on its own to develop infrastructure, the need is very big."

A need for infrastructure development is one of the reforms seen by analysts as needed to help Indonesia achieve an investment grade sovereign rating, a prospect drawing investors into the country's bond and currency markets.

President Susilo Bambang Yudhyono last year promised to spend $140 billion over five years on infrastructure as part of an effort to boost Indonesia's economic growth to 7 percent or more by 2014, up from an expected 5.5 percent in 2010.

The government has said it will offer new incentives for infrastructure investors and has also launched a $1 billion fund for investment in environmentally friendly infrastructure.

An Association of South East Asian Nations (ASEAN) fund to support infrastructure projects in the region is also expected to be set up this year with initial capital of $1 billion, with contributions from Japan, China, South Korea and the ADB.

(Reporting by Dicky Kristanto and Sunanda Creagh; Editing by Neil Chatterjee)

Wika to set up joint venture to tap foreign markets

Antara News, Monday, January 18, 2010 21:44 WIB

Jakarta (ANTARA News) - PT Wijaya Karya Tbk (Wika) plans to set up a joint venture company to tap construction market abroad particularly in Northern African countries such as Algeria, the company`s finance general manager, Entus Asnawi, said.

"Like in Algeria we will set up a joint venture with a local company to tap construction market in the oil rich country," Entus said here on Monday.

Wika would inject up to 49 percent of capital into the joint venture company with the rest of the capital left for the local company, he said to newsmen.

"We deliberately take a minority position because the rule in the country only allows to hold up to 49 percent shares," he said.

He said Wika would set up the company to win construction projects in that country which number a lot including building, housing and bridge construction projects.

"Later after the company wins a tender will Wika come to carry out the project. We are optimistic we will win the projects because the number of construction companies in that country is small," he said.

Entus said the plan will be realized immediately by the middle of this year at the latest and a local has already been chosen to be Wika`s partner.

He said Wika has actually received a lot of offers so far to carry out projects abroad such as from Russia and Brazil but "study has yet to be carefully done with regard to legal aspects to avoid a loss."

Entus said Wika had indeed built cooperation with Exim Bank of Indonesia to become the underwriter for the overseas projects but the bank also had to conduct a careful study first before agreeing the plan.

Regarding Algeria, he said, Wika was now carrying out a 500 kilometer long road and bridge project worth Rp800 billion in cooperation with a Japanese consortium.

"We win the trust because the result satisfied the consortium. Although our posisition is a mere sub-contractor we have been trusted to implement the next package. So we have twice obtained additional packages," he said.

With regard to the Asean-China Free Trade Area he said Wika would change its strategy not only to become a mere sub-contractor but to become a main contractor.

Indonesia to host 2010 FAEA Meeting

Antara News, Monday, December 21, 2009 14:19 WIB

Jakarta (ANTARA News) - Indonesia will host the 2010 ASEAN Economists Association Federation in 2010, General Secretary of the Indonesian Economic Scholars Association (ISEI PP) Anggito Abimanyu, said here Monday.

Abimanyu said that the 2010 FAEA meeting will discuss the global economy in the 2010 Indonesian Economy Outlook seminar.

The previous 2009 FAEA meeting was held in Cambodia, with ISEI participating, he added.

Besides to host the FAEA meeting, ISEI will also hold a plenum in Bandung, West Java, to discuss small and medium enterprises that has been playing an increasing role in the economy, he said.

Meanwhile, the Head of the Asia Pacific Studies Center from the Gajahmada University, Sri Adiningsih said that the macro economic stability would be well maintained but needs to beware of fragility in the 2010 economic prospect.

"Economic stability is still fragile due to the potential risks that arise in the number of short-term funds in the Indonesian economy," Adiningsih said.

The short-term funds might leave Indonesia anytime, which will cause a great impact on the Indonesian economy.

Adiningsih said that the economy, industry and investment growth will rise, but sluggishly.

"The informal sector will develop, therefore ISEI will discuss the matter in Bandung," said Adiningsih who is also the Chairperson of the Fiscal Coordination Focus Group and ISSEI Monetary ISEI central committee.

PM plans 24 expressways totalling 2,300km, plus more public transport

Viet Nam News, (29-08-2009)

HCM CITY — Viet Nam plans to build 24 expressways and expressway sections with a total length of 2,381 km by 2020, as approved by Prime Minister Nguyen Tan Dung.

Under the plan to 2020 with a vision to 2030, all national roads will meet technical standards by 2020.

Workers at Thang Long Construction Corporation spead asphalt on the under-construction high-way from HCM City to Long An. Viet Nam plans to build 24 expressways with a total length of 2,381km by 2020. —VNA/VNS Photo Thanh Nhan

Construction of all large bridges will be completed and all bridges in disrepair on national roads will be rebuilt by 2020. All footbridges made from trees and bamboo will be replaced by concrete bridges, and provincial roads will be paved with asphalt or cement.

Wider roads

Roads wide enough for cars to travel to the centre of communes will also be built.

The plan envisages rapid development of public transport in large urban areas, especially in Ha Noi and HCM City.

It also calls for a transport infrastructure network and public transport facilities for people with disabilities.

The plan targets 5.5 billion passenger trips within a year by 2020, and freight volume of 760 million tonnes by 2020.

By 2020, the country is expected to have about 2.8-3 million automobiles.

The plan also aims to control the increasing number of individual vehicles, resolve traffic jam problems and ensure urban traffic safety. It aims to offer safe transpor at reasonable prices.

To 2030, the plan calls for the completion of the modernisation of road infrastructure, which will include the construction of more expressways, expressway sections, urban roads and beltway roads. — VNS