Timor Leste interested in buying Indonesia-made ships

The Jakarta Post, Associated Press, Antara | Wed, 03/23/2011

Leste is interested in buying fast patrol boats produced by Indonesian shipbuilder PT PAL and has asked Indonesia to provide an export credit for the purpose.

Defense Minister Purnomo Yusgiantoro said at the presidential palace after accompanying President Susilo Bambang Yudhoyono in a meeting with visiting Timor Leste Primer Minister Kay Rala Xanana Gusmao here on Tuesday that Timor Leste would buy two FPB boats each worth around US$20 million.

"They discussed it just now and the government is ready to provide an export credit through Indonesia`s export financing body. The price is about US$20 each and they (Timor Leste) have ordered two units," he said.

Besides fast patrol boats Timor Leste was also interested to increase military cooperation especially in the field of training by sending its officers to participate in Indonesia`s National Defense Institute (Lemhanas), Staff and Command College (Sesko) and Defense University (Unhan).

"(They) wish to increase military cooperation and military education. They wish to participate in Lemhanas, Sesko and Unhan. We have so far also received participants from other countries," he said.

Besides Timor Leste a number of countries in Southeast Asia have also been interested to buy Indonesia`s strategic industry products such as the Philippines, Brunei Darussalam and Malaysia.

Purnomo said the Philippines had expressed its interest in landing platform dock (LPD) ships which could accommodate helicopter and be used for transporting troops and in natural disaster handling operations.

Malaysia meanwhile has ordered ANOA tactical vehicle produced by arms industry PT Pindad while South Korea has ordered CN 235 aircraft produced by PT Dirgantara Indonesia, Purnomo said.

Prime Minister Xanana Gusmao would be in Indonesia until March 25. Besides meeting with President Yudhoyono he was also scheduled to give a lecture at state University of Indonesia and attend an international defense convention here.

Japan Asks for More LNG, Oil Supply From Indonesia

Jakarta Globe, March 17, 2011

An undated company handout photo showing a transport ship docked
at the Bontang LNG plant in Bontang, East Kalimantan. Indonesia,
the world’s third-largest exporter of liquefied natural gas, has said it
was prepared to ship more of the cleaner-burning fuel to Japan if needed.
(Bloomberg Photo)

Related articles

• Japan Choppers Dump Water on Stricken Atomic Plant
• Grave Situation at Nuclear Plant Reactor: Edano
• Japan Thanks Indonesia for Support
• Catastrophe Makes Clear Indonesia Isn’t Ready for Nuclear Power, Experts Warn
• Nuclear Fears Turning to Anger in Japan

Japan asked Indonesia on Thursday to supply it more liquefied natural gas (LNG) and oil after a devastating earthquake crippled a nuclear power plant.

"After the tsunami and earthquake, Japan's nuclear power plant is damaged and we have a massive shortage of electricity...therefore I asked Indonesia's government to add to its imports of liquid gas and crude oil to Japan," Japan's vice minister of foreign affairs Makiko Kikuta told reporters in Jakarta.

Indonesia, a former OPEC oil producer, is the world's third-largest LNG exporter and largest exporter of thermal coal for power plants.

On Monday, Gde Pradnyana, a spokesman at BPMigas, said Indonesia was prepared to ship more of the cleaner-burning fuel to Japan if needed.

The supplies “will come from excess capacity at Bontang plant,” Pradnyana said, adding that there are still 20 cargoes available for sale from the plant in East Kalimantan province.

BPMigas said in July that Indonesia will offer 60 cargoes of LNG from Bontang, Tangguh and Arun plants to buyers from countries including Japan through 2012.

Arun in Aceh province and Bontang produced more than 95 percent of Indonesia’s LNG in 2009, according to Bloomberg calculations based on official data.

LNG is natural gas chilled to liquid form for transportation by ships to places not connected by pipelines. Qatar and Malaysia are the world’s largest and second-biggest exporters of the fuel, respectively.

Reuters, Bloomberg

Related Article:

RI, Japan to establish metropolitan priority area in greater Jakarta

Sarinah to begin exporting cassava

Antara News, Sun, February 13 2011 

Jakarta (ANTARA News) - State-owned company PT Sarinah is increasing the number of its trade commodities by purchasing cassava from farmers and exporting it for cattle fodder to China.

PT Sarinah President Director Jimmy M Rifai Gani said here on Sunday that his company was buying cassava from farmers in Central Java`s Cilacap district to meet the need for the commodity from China.

"So far, we have actually planned to export it to South Korea which will re-export the commodity to China. We have not yet met importers in China," he said.

He said that his company would sign a contract agreement with an importer from South Korea. "The first shipment is expected to be carried out in April with a volume of 5,000 tons worth Rp10 billion," he said.

PT Sarinah, he said, will export 5,000 tons of cassava every month to China through an importer in South Korea.

Jimmy said that China had demanded for 13,500 tons of cassava for cattle fodder per month but for the time being his side could only met half of it because his firm had not yet found suppliers at home.

"That is why we are trying to find suppliers in other regions. We will look for ones in Lampung province," he said.

He said that in the long run PT Sarinah will develop cassava farmers in regions so that they would be able to provide supplies for the export needs."This is because most of cassava plantations are cultivated in small scales," he said.

Editor: Aditia Maruli

President to launch loan plan for migrant workers

Wahyoe Boediwardhana, The Jakarta Post, Surabaya | Sun, 12/12/2010

President Susilo Bambang Yudhoyono is scheduled to launch a loan program for migrant workers during his upcoming three-day visit to Surabaya.

Yudhoyono will be in Surabaya from Monday to Wednesday.

The loan plan for migrant workers aims at providing low interest credit for Indonesians before going overseas for work.

The loans would be provided by state-owned banks Bank Negara Indonesia, Bank Rakyat Indonesia and Bank Mandiri.

Each migrant worker could borrow around Rp 5 million (US$550).

RI admits lack of cooperation with Saudi over migrant workers

The Jakarta Post, Jakarta | Mon, 11/22/2010 9:54 AM

The Indonesian government has admitted it proposed but never signed a draft of a memorandum of understanding intended to improve protection for Indonesian migrant workers in Saudi Arabia, a top official says.

Manpower and Transmigration Ministry Secretary-General Setyoko said Sunday that Indonesia had a long time ago proposed a legal basis to guarantee protection for Indonesian migrant workers in Saudi Arabia.

“We proposed the MoU a long time ago. But, the agreement requires the political will from both parties to sit together and cooperate,” Setyoko said as quoted by Tempointeraktif.com.

Setyoko declined to comment on why both Indonesian and Saudi Arabian had not signed the agreement.

“We keep trying to use our diplomatic channels to talk about the issue. We are still waiting for the outcome of the talks,” he said.

“We will also invite the Saudi Arabian manpower ministry to discuss the draft of the agreement as soon as possible,” he added.

More than 4,300 Indonesian migrant workers were currently facing hardship, ranging from illness to sexual abuse, the Indonesian government said earlier.

That number constitutes 0.1 percent of the total 3.27 million Indonesian migrant workers worldwide.

Related Articles:

Govt to restrict manpower export to Saudi Arabia

Indonesian Minister on Saudi Mercy Mission Is Still Awaiting Visa

Sending Migrant Workers to Countries without Legal Guarantees Must Stop

Govt to improve migrant workers` contracts in S Arabia

Muzadi calls to stop sending housemaids to Saudi

Migrant moratorium a good move: House deputy speaker

Indonesia maid 'killed in Saudi Arabia'

Indonesian Maid in Saudi Hospital in Latest Abuse Case

Saudi King Abdullah leaves for the U.S. for medical treatment

Saudi prince returns as king readies for US treatment

It’s time for civet coffee for Lampung farmers

Oyos Saroso H.N., The Jakarta Post, Bandarlampung | Thu, 08/12/2010 8:52 AM

Cashing in on the rising popularity of civet coffee is hard for coffee farmers in West Lampung regency, Lampung, to resist.

Farmer Wahyu Anggoro in Way Mengaku district said 1 kilogram of luwak or civet coffee beans could fetch between Rp 250,000 [US$28] and Rp 750,000, while regular dried coffee beans were sold at Rp 15,000 a kilogram. “One kilogram of ground civet coffee could fetch up to Rp 1 million,” said Wahyu.

Civet coffee is made from hard beans eaten by nocturnal animals, which then ferment in their stomachs before they are excreted with their shape intact. After being gathered, washed, sun dried, light roasted and brewed, the coffee is highly prized for its smooth flavor and non-bitter aftertaste, earning it the reputation of the world’s most expensive coffee.

The Indonesian Ulemas Council recently considered declaring the coffee haram but asserted it could be consumed (halal) if farmers cleaned the beans before they are ground.

Droppings used to be eagerly collected by farmers, believing the civet only picked and ate the finest coffee berries. Now the coffee is mostly produced by farmers.

In West Lampung, mainly in Belalau and Balikbukit districts, in recent years the coffee has been marketed locally and overseas, mostly to Korea and Taiwan.

Farmers raise between four to dozens of civets, feeding them with ripe coffee beans freshly picked from the farm. There are 10 luwak coffee trading groups in West Lampung, each able to sell up to more than 7 tons of coffee monthly.

“Traders from Thailand have come especially to buy luwak coffee. Traders usually sell it at higher prices of up to Rp 1 million per kilogram to visitors.,” Wahyu said.

Wahyu said traders should keep updated, such as determining the latest price of civet coffee on the global market, learning how to boost production and improve quality.

“In Lampung, luwak coffee is cheap, but not overseas. That’s why its production is very promising,” Governor Sjachroedin said. A cup of the coffee costs Rp 20,000 in a Bandarlampung hotel and only Rp 10,000 in the city’s cafes.

“We will help coffee farmers to process and package civet coffee, and help its marketing.”

S’pore firm to invest $500m in RI cacao industry

The Jakarta Post, Jakarta | Mon, 07/19/2010 10:33 AM

ADM Cocoa Pte Ltd, an intermediate cacao product manufacturer based in Singapore, plans to invest about US$500 million in the cacao processing industry in Indonesia, says a senior official.

“The company expects to process between 80,000 and 100,000 tons of cacao per year,” Deputy Agriculture Minister Bayu Krisnamurthi told The Jakarta Post on Sunday via text message.

He said ADM Cocoa had acquired land in South Sulawesi for a cacao plantation to supply cocoa beans for the company’s processing plants.

“It intends to develop a new factory or upgrade its existing plant. Talks are still under way,” he said.

“We estimate national production of cocoa beans at 750,000 tons this year,” Bayu said, adding that Indonesia exported 350,000 tons of cocoa each year.

Apart from cacao, he said, the ministry had also accelerated its campaign to promote other agricultural products, including coffee.

Accompanied by the Indonesian Coffee Exporters Association (AEKI) and representatives from 20 coffee producers, a ministry delegation led by Bayu recently toured China to promote Indonesian coffee, starting with a pitch at the 2010 World Expo in Shanghai, China.

“Chinese consumers very much enjoy Indonesian coffee,” he said, adding they preferred coffee with exotic aromas such as Toraja and Mandailing coffees. He said Chinese consumers also loved the Indonesian coffee specialty Kopi Luwak.

The Luwak coffee stand is one of the more popular stands at the Indonesia pavilion at the six-month Expo that kicked off May 1.

It serves between 300 and 500 cups of coffee each day to visitors.

“This is proof that coffee drinking is becoming more popular among the traditionally tea-loving Chinese,” Trade Minister Mari Elka Pangestu said last week.

The government has set a new target of 5 million visitors to the Indonesia pavilion, which it hopes to reach by the end Expo on Oct. 31, after the initial target of 3 million visitors was met last week.

Bayu said Indonesian coffee producers were targeting young Chinese consumers, an estimated market of 350 million people.

“Chinese demand accounts for about 17 percent of our total exports each year,” he said, adding that exports of Indonesian coffee to China could reach 50,000 tons annually.

Bayu added that a global coffee association had included four Indonesian blends in its list of the 10 best coffees in the world — Toraja, Gayo, Mandailing and East Java. (ebf)

Eleven Indonesian banks to receive US financing

Antara News, Friday, June 18, 2010 20:58 WIB

Jakarta (ANTARA News) - The Export-Import Bank of the United States (Ex-Im Bank) Friday announced that it has given initial approval to 11 banks in Indonesia to receive financing as part of the banking facilities amounting to one billion dollars to support US exports to Indonesia.

The 11 banks are Indonesia Eximbank, Bank Mandiri, Bank Negara Indonesia, Bank Rakyat Indonesia, Bank Central Asia, Bank Danamon, Panin, Bank CIMB-Niaga, Bank OCBC Indonesia, Bank Internasional Indonesia and Bank UOB Buana.

Chairman and President of the US Ex-Im Bank, Fred P. Hochberg, through a press statement released by the U.S. Embassy in Jakarta, Friday, announced a new banking facility on Friday at a meeting with Coordinating Minister for Economic Affairs of Indonesia in Jakarta.

"With a diverse economy that continues to grow, Indonesia offers huge opportunities for U.S. exporters in various sectors. This banking facility will allow Indonesian companies to access financing of Ex-Im Bank support from their local banks and help Ex-Im Bank approved the transaction faster," said Hochberg.

RI ambassador opens Moscow "Halal" Expo 2010

Antara News, Tuesday, June 8, 2010 01:59 WIB

London (ANTARA News) - The Indonesian ambassador to Russia and Muslim leaders opened an exhibition of "halal" (allowed for Muslims) products, the very first of its kind in Russia, the International Moscow Halal Expo 2010, at Crocus Expo, Moscow, from June 7 to 9, 2010.

The 60 participants came from Russia, Belarussia, Germany, Turkey, United Arab Emirates, Bahrain, and Indonesia, Counsellor at the Indonesian embassy in Moscow Aji Surya told Antara`s London correspondent Monday.

Aji Surya said the exhibition is an answer to the needs of the 25 million Muslims in Rusia.

The event not only displays food and drinks, but also cosmetics, household utensils, and souvenirs.

Five Indonesian companies have sent their products.

On the occasion of the expo, a conference was also held on the development of an Islamic financial system in Russia, business meetings, and fashion shows.

By the end of June, a team from the religious ministry will provide supplies and directives on the management of the haj pilgrimage.

US commerce secretary to visit RI

Antara News, Monday, May 10, 2010 22:37 WIB

Jakarta (ANTARA News) - United States Secretary of Commerce Gary Locke and a select group of US business leaders are scheduled to visit Indonesia May 25-26,

According to a press release received here on Monday, the first cabinet-level trade mission of the Obama Administration`s visit to Indonesia was aimed to deepen the commercial and technology partnerships and exchanges that lead to increased trade and investment in clean energy development.

Building a solid foundation for President Obama`s new National Export Initiative and his commitment to creating substantive partnerships with growing economies such as Indonesia, US Commerce Secretary Locke will engage with Indonesian officials and private sector representatives on advancing bilateral trade and to pave the way for Obama`s upcoming visit to Jakarta that will mark a new chapter for US trade and partnership with Indonesia.

Secretary Locke and his staff will lead select American companies on this clean energy mission to assure them of the deep US commitment from the Obama administration to emerging Asian economies and to ask the host countries to open their doors to reliable US partners who can join them in building jobs, economic growth and a better environment in their respective countries.

The delegation will be in Jakarta where Coordinating Minister of Economy Hatta Rajasa will host the Secretary of Commerce and the business leaders to meet with key Indonesian ministers, legislative leaders and private sector representatives. The group is also expected to see President Susilo Bambang Yudhoyono who is a firm advocate of a clean and secure energy future for Indonesia and a proponent of a meaningful strategic partnership with the US. The group will also be hosted by KADIN, the American Chamber of Commerce and US Ambassador Hume as well as the University of Indonesia.

In speaking about this mission, Secretary Locke said, "America`s economic future will depend on how well it competes to meet the rising global demand for clean energy in the 21st century; the business leaders joining me on this trade mission understand the urgency of that global competition". Locke noted that Indonesia represents a key partner for US companies that is ready to compete in the clean energy and energy efficiency sectors and find mutual benefits in Asia.

The US Ambassador to Indonesia, Cameron Hume, during his presentation at an ASEAN clean energy summit in Manila said last week that Indonesia is to be applauded for its integrity in openly addressing the distortions and losses from subsidies to fossil fuel consumption that divert funds from education, health and defense.

He recognized that Indonesia seeks to balance the social demands for cheap energy with the reality that now they are a net energy importer that like the US they must find the means to efficiently use their rich renewable resources like geothermal, sunshine, geography and their people to embrace cutting edge clean technology tools from the US and locally to achieve a bright future for Indonesians.

Trade directly and indirectly supports millions of jobs globally. Trade and open collaboration in technology transfer, development and use of advanced energy equipment and high level education and skills are an increasingly important part of the knowledge economy and a key component of the Obama Administration`s efforts to create jobs and economic balance in the US and globally.

The administration has stated its commitment to aggressive trade promotion strategies and in March, President Obama issued an executive order creating a new initiative that aims to enhance US trade and international engagement leading to millions of jobs and economic vibrance for the US and its partners.

In addition to Jakarta, the group will visit Hong Kong, Shanghai, and Beijing. The delegation also includes other US economic and trade agencies such as the US Export Import Bank, US Overseas Private Investment Corporation, US Trade Development Agency and US Foreign Commercial Service.

Private firms include Capstone Turbine Corporation, Caterpillar, Echelon Corp., Emerson Electric, General Electric Company, Lockheed Martin Global, Inc., Oshkosh Corporation, Peabody Energy, Pratt & Whitney Power Systems, Inc., and Prime Engineering, Inc.

Related Article:

President: Follow up education reform with innovation

Talking science

The Jakarta Post, Antara | Mon, 05/10/2010 3:56 PM

Talking science: President Susilo Bambang Yudhoyono (right) welcomes Bruce Alberts, the US special envoy for science and technology, at the State Palace in Jakarta on Monday. The meeting was to discuss possible cooperation between the two countries in science and technology matters. Antara/Widodo S. Jusuf

CN-235 to be displayed at expo Indonesia 2010 in Bangladesh

Antara News, Tuesday, April 20, 2010 19:54 WIB

Jakarta (ANTARA News) - CN-235, a product of Indonesia`s strategic airplane industry PT Dirgantara Indonesia (PT DI), will be displayed at Expo Indonesia 2010 in Bangladesh on May 11 to 13, 2010.

Indonesian ambassador in Dhaka Zet Mirzal Zainuddin said the exhibition will display various export products of strategic and non-strategic industries in Indonesia.

Some of the products of strategic industries included CN-235 of PT DI, military vehicles and equipment of PT PINDAD, and railway coaches of PT INKA.

The automotive products also to be displayed at the event will include multi purpose vehicles like Suzuki APV, Toyota Avanza, and GT products.

Expo Indonesia 2010 will have the theme "Integrated Expo 2010: Discover Indonesia, the Beauty Unlimited".

Indonesia takes U.S. to WTO over clove cigarette ban

Reuters, Jonathan Lynn, GENEVA, Mon Apr 12, 2010 12:15pm EDT

(Reuters) - Indonesia is launching a formal dispute at the World Trade Organization (WTO) against the United States over a U.S. ban on clove-flavored cigarettes, an official at Indonesia's WTO mission said on Monday.

Like many trade disputes, this one involves health standards and whether they are being abused for protectionist purposes. It centers on the clove and tobacco blends known as kretek that dominate the tobacco market in Indonesia but are little smoked outside the southeast Asian country.

The U.S. Food and Drug Administration (FDA) banned cigarettes with fruit, confectionery or clove flavors in September last year, arguing that such cigarettes were particularly attractive to children.

But the U.S. ban does not include menthol-flavored cigarettes that are widely produced in the United States and smoked by about 19 million Americans.

Indonesia argues this discriminates against foreign producers of flavored tobacco to help domestic manufacturers.

"They have to prove that menthol doesn't have a bad impact," said the official, who asked not to be identified.

MENTHOL YES, CLOVES NO

U.S. tobacco companies told the Food and Drug Administration on March 31 that adding menthol did not make cigarettes more harmful or addictive.

Under WTO rules, the two countries now have 60 days to resolve their differences through consultations, otherwise Indonesia can ask the WTO to create a panel of experts to rule on the issue.

The case is only the fifth brought by Indonesia, the world's 21st biggest exporter, at the WTO.

Kretek cigarettes account for the bulk of tobacco consumption in Indonesia, the world's fifth biggest tobacco market, although unflavored or "white" sticks are gaining in popularity.

Indonesian exports of cigarettes and cigars totaled $357.8 million in 2008, the last year for which data is available.

Only a relatively small number of kretek cigarettes is exported, and anecdotally they are coveted by young people in the United States who see them as an alternative to more conventional brands.

Foreign tobacco producers, keen to gain a bigger share of expanding markets for cigarettes in emerging economies, have been buying up Indonesian manufacturers to acquire kretek brands and expertise and build on the potential for white stick sales.

In June last year the world's number two cigarette maker British American Tobacco bought an 85 percent stake in Indonesia's fourth largest cigarette maker by volume, PT Bentoel Internasional Investama.

Philip Morris International acquired the majority of Hanjaya Mandala Sampoerna in 2005.

Other Indonesian manufacturers include Gudang Garam and unlisted conglomerate Djarum.

Supervising the consultations with Indonesia will be one of the first tasks of the new U.S. ambassador to the WTO, Michael Punke, whose Senate confirmation was held up for six months by a Republican senator from the tobacco-growing state of Kentucky.

Senator Jim Bunning wanted President Barack Obama's administration to challenge Canadian anti-smoking legislation -- including a ban on flavored tobaccos -- that he said hurt his state. Obama finally put Punke into office at the end of March with a recess appointment.

(Editing by Michael Roddy)

State-owned Enterprises Invited to Manage Middle East Projects

Tempo Interactive, Saturday, 27 March, 2010 | 09:38 WIB

TEMPO Interactive, Jakarta:State-owned Enterprises Minister Mustafa Abubakar said his office has invited state-owned enterprises to meet with Iraqi and Jordanian businessmen who offered business in the construction sector. “I invited them for a business-to-business meeting,” Mustafa said in Jakarta yesterday.

Among the state-owned enterprises invited were PT Wijaya Karya, PT Adi Karya, and PT Pembangunan Perumahan. With regards to the financial loss suffered in the Middle East, Mustafa said state-owned enterprises have learned a lot from their experience. “They have learned their lesson and will not let it happen again,” he said.

The investments offered included projects in road, housing, and building construction in post-war Iraq. The collaboration would be in the form of a partnership or a possible joint-venture. The investment value is high although Mustafa does not know the exact figures. “We have not talked about numbers yet,” he said.

PUTI NOVIYANDA

Indonesia`s Merukh wins US$3 bln Swiss contract to supply coal

Antara News, Monday, March 22, 2010 17:36 WIB

Jakarta (ANTARA News/Asia Pulse) - Indonesia\'s PT Merukh Enterprises said it has secured a 30-year contract to supply coal to Swiss buyer Glencore International.

Company chief commissioner Jusuf Merukh said Merukh Enterprises will supply 30 million tons of coal valued at around US$3 billion to the Swiss trading company every year.

He said his company has secured a loan pledge of US$600 million to develop the Batu Licin coal concession.

Source:
Business in Asia Today - March.22, 2010
published by Asia Pulse

Indonesia seaweed supply to RP assured

BusinessMirror, Agri-Commodities, Written by Jennifer A. Ng / Reporter, WEDNESDAY, 10 FEBRUARY 2010 19:48

INDONESIA has assured seaweed processors from the Philippines that it will be able to supply its requirements for raw seaweed in the coming years.

Dr. Victor Nikijuluw, a director of Indonesia’s Ministry of Marine Affairs and Fisheries, disclosed that Jakarta is not planning to impose a total ban on seaweed exports.

“[We are not planning to impose] a total ban; what we plan to do is manage exports,” Nikijuluw told reporters in a press briefing in Makati City late Monday night.

The Indonesian official said he is looking at three approaches to “manage exports.”

One approach, he said, is to give the license to import raw seaweed to companies that operate processing plants in Indonesia.

“[The second approach] is to give the export license to small and medium enterprises and cooperatives. This will ensure that SMEs and cooperatives benefit from the export of raw seaweed,” said Nikijuluw.

The Indonesian official said the third approach would be to implement a quota system for traders. He noted that Jakarta may implement all these strategies by 2012.

Last year Nikijuluw disclosed that Indonesia produced a total of 300,000 metric tons of raw seaweed. Of this volume, around 85 percent was exported to other markets. China cornered a significant chunk of this volume. The Philippines accounts for about 25 percent of what Indonesia exports to the world.

By 2014, Indonesia is targeting to increase raw-seaweed production to 1 million metric tons. Nikijuluw assured that the Philippines would still be able to get supply from Indonesia.

Benson Dakay, president of the Seaweed Industry Association of the Philippines (SIAP), hopes that Indonesia will not resort to a total ban on raw-seaweed exports.

“[Jakarta] wants [all raw seaweeds] to be processed before it ships out seaweed products. If Indonesia will impose a total ban, [their] farmers would surely suffer, because they will lose markets for their produce,” said Dakay, who also owns the seaweed-processing firm Shemberg Corp.

Meanwhile, Dakay disclosed that local seaweed processors are operating below capacity due to the lack of local seaweed supply.

“Our cottonii processing is only 30 percent, because there is no raw seaweed. We [currently] rely on Indonesia, Vietnam and Cambodia for supply,” he said.

The SIAP chief said the lack of local seaweed supply can be traced to the inability of farmers to get financing for their farming venture.

“In the past, [seaweed-processing companies] extend loans to farmers and if they default, companies can write off their loans. Now, we can no longer do that,” said Dakay.

Benjamin Tabios Jr., assistant director of the Bureau of Fisheries and Aquatic Resources, said the agency’s hands are practically tied because there is no enabling law that gives them the authority to finance seaweed farmers.

“Nowhere can you find in the Fisheries Code a specific language on financing for the seaweed industry,” said Tabios.

Seaweed is one of the top 10 export winners of the Philippines. In 2008 the value of seaweeds and carageenan exports reached $122 million, according to Department of Agriculture figures.

EU gets 'Euro-leaf' logo for organic food

BBC News

The logo will soon appear on food packages across the EU

A new EU-wide "Euro-leaf" logo will be compulsory from 1 July for all pre-packaged organic food produced in any of the 27 EU member states.

The green logo, featuring the 12 EU stars in the shape of a leaf, will be optional for imported produce.

Existing national logos for organic food will be allowed to appear next to the new EU logo.

A German student won a competition to design the new symbol. Dusan Milenkovic got a prize of 6,000 euros (£5,254).

Some 130,000 people voted online to choose the symbol and Mr Milenkovic's entry got 63% of the overall vote. The competition was organised by the European Commission.

Indonesian plywood makers eying Indian market

Antara News, Sunday, January 31, 2010 22:33 WIB

Jakarta (ANTARA News) - Indonesian plywood producers have started eying the rapidly expanding market in India in an effort to restore Indonesia`s domination in the international trade of the commodity.

Deputy Chairman of the Indonesian Wood Panel Association (APKINDO) Abbas Adhar said in Jakarta Sunday that his side has been seriously working on the Indian market. It will soon send an intelligence marketing team to obtain complete information to reach the Inddian market.

It was disclosed in a discussion of the International Tropical Wood Organization (ITTO) in November last year that India`s wood imports had increased by 10 percent.

Each year India imported 16 million m3 of wood, while its domestic consumption reached 85 million m3.

"India had been importing wooden products from many countries, but Indonesia`s wood products to that country has yet to reach some significance," Abbas said.

He said Indonesia was able to fill gaps in India, as it needed a great deal of hardwood. "As most of the Indonesian products imported to that country comprised softwood," Abbas said.

He also said India needed a great deal of plywood of a thickness of 2.7 millimeters. "It just happened that this type of products are leading products in Indonesia, compared to those from Malaysia.

Shoe Factory in China Moves to Indonesia

Tempo Interactive, Thursday, 28 January, 2010 | 14:55 WIB

TEMPO Interactive, Tangerang:Trade Minister Mari Elka Pangestu said there seems to be a tendency for shoe manufacturers in China to relocate to Indonesia. The strengthening Chinese yuan can be one reason for this, along with the increasing cost of manpower and its regulations in China. “This is a permanent trend,” Mari said yesterday in Tangerang, Banten.

Major shoe producers like Nike, Adidas, and New Balance, have relocated their shoe purchases from China to Vietnam and Indonesia. Such a trend, Mari said, has been going on since 2005. For the last four years, the resulting value of these moves to Indonesia have resulted in US$ 1,8 billion. "Buyers are coming in large numbers,” she said.

The relocation, Mari continued, will improve production and investment in the country, especially when Indonesian shoes are now capable of competing with Chinese and Vietnamese products. The Indonesia Shoe Association board chairman, Harijanto, said with top shoe brands coming to Indonesia, the national shoe industry will make efficiencies and restructure the production system. “But the government must ensure that electricity supply is reliable and that infrastructure, like roads are repaired,” she said during the visit. She also cited the example of the Panarub factory in Pabuaran, Tangerang, which can only reach Tanjung Priok Port through the Tomang toll road which is often congested.

Harijanto also asked for more efficiency in arranging investment permits, especially in the provinces. Mari promised to reduce the bureaucracy, including the time to process the licenses. She said New Balance investors admitted that the cost and production of Indonesian manpower is competitive and the staff turnover is stable, as is the national political situation. “Then there is the infrastructure that need to be repaired,” she said. PT Panarub Dwikarya CEO, Hendrik Sasmito, said the local shoe industry will remain competitive with China and Vietnam, as long as it can keep down the cost of production. “So long as there is no out-pricing, it can still go on,” he said.

Panarub currently produces four shoe brands; Adidas, New Balance, Mizuno, and Specs. A pair of New Balance shoes is sold at US$ 12 to 16. Panarub has two factories and will open a new one in Cikupa, Tangerang. Panarub has exported 1 million pairs of shoes. Until the end of 2010, an additional 500.000 pairs per month will be produced.

IQBAL MUHTAROM

Indonesia to host world food exposition next week

The Jakarta Post, Jakarta | Sat, 01/23/2010 12:48 PM

The Indonesian Chamber of Commerce and Industry (Kadin) is gearing up to host an international conference and exhibition on food, aimed at introducing domestic producers to the global market.

President Susilo Bambang Yudhoyono will launch the two-day "Feed the World" event on Jan. 28 at the Jakarta Convention Center.

Hundreds of participants - including food producers, business associations, academics and international bodies - will take part.

Several Cabinet ministers will speak at the event, as well as representatives from the Food and Agriculture Organization (FAO) and other international institutions.

Among those slated to deliver presentations at the event's seminars are Public Works Minister Djoko Kirmanto, Agriculture Minister Suswono, Forestry Ministry Zulkifli Hasan, Finance Minister Sri Mulyani Indrawati and Home Minister Gamawan Fauzi.

Industry Minister Mohamad Suleman Hidayat, also the Kadin chairman, said Friday at a press conference that participants would showcase innovations and various types of new products from the agricultural, plantation, forestry, animal husbandry and fishery sectors.

"We want to show the world that we're not just going to fulfill domestic food demand, but also help meet the world's food needs," he said.

In its 2009-2014 road map on food development, the government is looking to promote 10 key commodities: the four "strategic commodities" of rice, corn, soybean and sugar, and the six export-potential commodities of palm oil, tea, coffee, cacao, shrimp and tuna.

Hidayat said the road map was the first step for the government to achieve the target of making Indonesia a top food-producing nation by 2030.

Indonesia is currently the world's biggest producer of crude palm oil (CPO), accounting for 47 percent of global production. CPO pro-duction is expected to reach 23.6 million tons this year, an 18 percent increase from last year's total of 20 million tons.

The road map allows domestic CPO producers to expand their plantations from a total 7.9 million hectares as of the end of 2009 to 9.7 million hectares in 2015.

The expansion is expected to help boost output to 36.6 million tons.

Production of another key crop, coffee, is expected to reach 737,000 tons this year, or 142 percent more than domestic consumption. The 433,000-ton surplus will be exported, under the road map.

Coffee exports are expected to increase by 4.69 annually until 2020, when 636,000 tons of the total production of 973,000 tons is expected to be exported. (bbs)

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.