Russian Railways to Build $2.4b Coal Line in Indonesia

Jakarta Globe, February 07, 2012

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State firm Russian Railways plans a $2.4 billion train line on Indonesia’s Borneo island that will initially be used to transport coal, an Indonesian government official said on Tuesday.

The line in East Kalimantan province is expected to start operating by the first quarter of 2017, and will help improve the decrepit infrastructure on the island that has hampered exports of key commodities and put a strain on economic growth.

“The first stage of the railway will be meant for coal, but hopefully we can also use it for crude palm oil, plantation harvests, rubber and people,” Awang Faroek, the governor of East Kalimantan, told a news conference in Jakarta.

The first phase of development, which will cost $1.7 billion, will be for 185 kilometers of railway, with another 60 kilometers added during a second phase.

The railway’s capacity is expected to be 20 million metric tons of coal per year for the first phase, added Andrey Shigaev, a director at the project, which will be funded by both private investors and Russia’s state development bank Vnesheconombank.

Southeast Asia’s largest economy is the world’s top producer of palm oil, the biggest exporter of refined tin and thermal coal, a major nickel miner and home to the world’s second-largest copper mine and largest gold mine. The country’s coal and palm oil assets are mostly located in Kalimantan.

The railway will connect an area close to the Balikpapan port through the Kutai Barat regency to the border to Central Kalimantan province, where the railway is expected to be expanded in the second phase of the project.

“The Russians have expertise in heavy haul rail lines,” said an Australia-based analyst. “Russian Railways are a pretty big operator of rail infrastructure, so I would guess it’s the rail company looking to expand.

“Russia itself doesn’t need to buy coal from anyone, they have a lot of coal of their own so from a strategic point of view, they don’t need to do it.”

Indonesia’s thermal coal output is seen at 350 million metric tons this year, according to industry estimates, fueled in large part by power demand in China and India.

The UAE’s MEC Holdings is currently building a railway to export coal from its Kalimantan mine project, and leading Indian conglomerate Reliance ADA Group is set to invest between $5 billion and $10 billion in mining infrastructure.

“Traditionally, coal in Indonesia has been transported by pretty fragmented means — trucks, small private short railways, barges,” the analyst added.

“It does signal that the producers there and the government is getting a bit more serious in terms of their commitment to scale infrastructure.”

Infrastructure development in Indonesia has been slowed in the last decade because of uncertainties in acquiring land.

However, in December the parliament passed a land bill designed to speed up land acquisition for state projects deemed in the public interest as a way to address the problem.

Economic growth in Indonesia was 6.5 percent last year — it’s highest level since 1996 — while the country attracted record foreign direct investment of close to $20 billion.

Reuters

Russia to invest $2.5b for railway construction in Kalimantan

The Jakarta Post, Jakarta | Mon, 08/01/2011

Russia is planning to invest US$2.5 billion for the construction of a railway connecting the Indonesian provinces of Central Kalimantan and East Kalimantan, an official said on Monday.

“The length will be 185 kilometers. It will be used to transport coal,” Rizal Affandi, the deputy for international cooperation at the Coordinating Ministry for the Economy, said after a meeting between Indonesian Coordinating Minister for the Economy Hatta Rajasa and Russian Ambassador to Indonesia Alexander A. Ivanov.

Rizal said the Indonesian government aimed to complete the project within three to five years.

He added that the project was part of the government’s Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development (MP3EI).

Russia agreed to invest after the visit of a number of ministry officials to Russia a while ago, Rizal said, as quoted by tempointeraktif.com.

Thirteen young Indonesian scientists to compete in Moscow

Antara News, Thursday, December 23, 2010

Denpasar, Bali (ANTARA News) - Thirteen shortlisted students will represent Indonesia at the 2011 International Conference of Young Scientists (ICYS) due to be held in Moscow, Russia, on April 24-29, a government official said.

Among them were two Balinese students, Jessica Ikhwan (SMA CHIS, Denpasar) and Luh Laksmi Dharayanti Satria (SMAN 1 Singaraja), Head of Bali province`s education, youth and sports office, I Wayan Suasta, said here Wednesday.

Jessica and Luh Laksmi were successful in a very tight national selection process recently held in Bandung, West Java province, along with 11 other junior and high school students, he said.

"They will defend Indonesia`s honor at the ICYS along with eleven other students who are successfully shortlisted in the national test in Bandung," he said.

The other students consisted of Arief Ridho Kusuma (SMAN 1 Samarinda), Sallie Naomi (SMP St. Laurensia, Tangerang), Michael Sunarto (SMP Chandra Kusuma, Medan), Christa Lorenzia Soesanto (SMA St. Laurensia, Tangerang) and Reza Abdurahman (SMA Taruna Nusantara, Magelang).

Then Ganang Albryansah (SMPN 1 Bontang), Dwiky Rendra Graha Subekti (SMA Theresiana 1 Semarang), Fialdy Josua Pattirajawane (SMP Chandra Kusuma Medan), Luthfi Mu`awan (SMAN 1 Purwareja), Luh Laksmi Dharayanti Satria (SMAN 1 Singaraja), Jessica Ikhwan (SMA CHIS Denpasar), Jessica Lo (SMA Kristen Cita Hati Surabaya) and Christy Hong (SMA St. Laurensia Tangerang).

"At the conference, students from various countries will compete in four research fields, namely physics, math, computer and ecology sciences," Suasta said.

Luh Laksmi Dharayanti herself would compete in ecology science by presenting her research outcome entitiled "The Utilization of Tea Warte (Camellia synensis) As Natural Marine Fish".

Her colleague, Jessica Ikhwan, would also compete in the same research topic by presenting her report titled "The Making of Artificial Reef".

"This is the first time for Bali to be able to send its students to this world`s young scientist conference," he said.

At the 2009 ICYS, held in Bali provincial capital of Denpasar, none of Balinese students was in the Indonesian team despite the fact that Bali was chosen by the central government as the host, he said.

"We hope our two students will be able to do their best at the prestigious conference," he said.

Russian investment in RI projected to reach US$7 billion

Antara News, Saturday, November 20, 2010 02:48 WIB

Jakarta (ANTARA News) - Russian investment in Indonesia may increase to five to seven billion US dollars in the years to come, Russian ambassador to Indonesia Alexander Ivanov said here on Friday.

He said Russia`s total investment in Indonesia was at present recorded at more than US$1 billion.

"Our investment value in Indonesia has the potential to increase to five to seven billion US dollars," he said.

He said investment cooperation between the two countries in the form of joint ventures had kept increasing from year to year and had even intensified after a recent global financial crisis.

"We must always be optimistic to increase the two countries` cooperation," he said.

He said he would encourage more Russian businessmen to come to Indonesia and conduct partnership with local businessmen.

"For us Indonesia is a market giant which is just growing and one of the emerging countries which is accounted for," he said.

Russia and Indonesia have had diplomatic relations for 60 years. The two countries are common members of the G20, the Asia Pacific Economic Forum (APEC), the UN and Russia has also been the good partner of the Association of Southeast Asian Nations (ASEAN)in which Indonesia is also a member.

"With regard to human resources we hope our cooperation will also increase in student and tourist exchanges," he said.

On the occasion the ambassador had also called on Indonesians not to hesitate to visit Russia which he described as beautiful and friendly.

"I invite more Indonesians to come to Russia that has a lot of beautiful places to visit not only Moscow but also others," he said.

He said it was time for Indonesia as an Asia Pacific neighbour to interact more often with Russia as in the current global era distance has no longer become a problem.

Govt plans to buy more Sukhoi jet fighters

Dicky Christanto, The Jakarta Post, Makassar | Tue, 09/28/2010 9:36 AM

The government will in the near future purchase at least six more Russian-built Sukhoi jet fighters to form a complete fighter squadron, the defense minister says.

“Our strategic plan for the 2010-2014 period is to buy more Sukhoi fighters so that we could have a squadron of them,” Defense Minister Purnomo Yusgiantoro told reporters after the handing over ceremony of three Sukhoi SU-27 SKM fighters from Russia in Makassar, South Sulawesi, on Monday.

Purnomo said he was upbeat the plan would materialize soon given the country’s robust economy.

“Our state budget has reached more than Rp 1,000 trillion and our GDP is about five times that. I believe we will be able to complete our Sukhoi squadron.”

Alexander Ivanov, the Russian Ambassador to Indonesia said his government was more than ready to provide assistance to Indonesia to complete the existing Sukhoi fleet.

“We expect further cooperation with the Indonesian government regarding its plan to develop the Sukhoi squadron. We will provide any assistance required,” he said.

Three Sukhoi SU-27 SKM fighters were delivered by the manufacturer, Rosoboronexport Russia, to the Ministry of Defense on Monday.

The delivery of the last three fighters completed the purchase of six Sukhoi jet fighters, under an agreement signed by Jakarta and Moscow in 2008.

Indonesia now has 10 Sukhoi fighters and it will need at least six to eight more to form a squadron.

Secretary-general of the Defense Ministry Vice Marshall Eris Haryanto said the government has spent a total of US$ 335 million to purchase the six aircraft.

Air Force Chief of Staff Air Marshall Imam Sufaat said the Russian jet fighter had been able to perform beyond satisfactory level and therefore suited the air force in carrying out its duty to safeguard both the country’s air and land territory.

“The aircraft has been able to perform both air to air and air to ground striking maneuvers satisfactorily. Thus there will be no reason for us to doubt this aircraft to safeguard our country’s territory,” he said.

The newest Sukhoi is equipped with guided missile facilities, which have not been included in most of jet fighters in its class.

However, Imam said that right now none of the newly produced Sukhoi had its own weaponry system in place. “The weaponry system is sold separately from the aircraft. But this will be no problem for us since now we have been able to manufacture almost all of the aircraft’s weaponry systems. We are still in the middle of developing its missile,” he said.

Besides the Sukhoi, Indonesia, which has 43 air bases throughout the country, is also the home for the other two squadrons of jet aircraft, made up of the US F16 jet fighters and British Sky Hawks.

RI, Russia to establish economic forum

The Jakarta Post, Jakarta | Wed, 09/22/2010 9:44 AM

The governments of Indonesia and Russia will soon sign an agreement to set up a bilateral economic forum to address issues on economic and trade cooperation between the two countries, an official says.

Trade Minister Mari Elka Pangestu said Tuesday the forum would function as a place for Jakarta and Moscow to discuss and exchange potentials and constraints in boosting trade and investment.

“Businessmen from Indonesia barely recognize the huge economic potential of Russia and vice versa,” she said at her Jakarta office.

Mari said that among the constraints that currently hindered the growth of Indonesia’s exports to Russia was limited access to export finance from either Russian or Indonesian export facilities. The absence of direct transportation to send goods from Indonesia to Russia, had become a major concern, she added.

According to Trade Ministry data, the value of Indonesia’s exports to Russia in the first half of this year reached US$242 million, while the value of imports was $540.3 million, bringing the deficit to $298 million.

In 2009, total bilateral Indonesia-Russia trade volume hit $774 million with exports reaching $316 million while the deficit was $142 million.

Mari said the Indonesia-Russia economic forum was very important in facilitating direct talks on Russian import duty regulations. Russia was not a member of the World Trade Organization (WTO), so many regulations were different from those in WTO member-states, she added.

She said that Russia was a potential market for various Indonesian products, including palm oil, cacao and tea. She added that Russia not only was a large market, but it also had strong purchasing power.

“We are now still discussing which sectors should be prioritized in this cooperation. We will also listen to opinions from businessmen in both countries. The fact is, Russia is very upbeat with this cooperation,” she explained.

Robust economic performance in recent years has made Indonesia an appealing partner for economic cooperation. Indonesia’s competitiveness index rating has climbed 10 places to 44 out of 139 countries in the Global Competitiveness Index (CGI) 2010-2011. (rdf)

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.

RI to give flight permits to two Russin airlines

Antara News, Saturday, May 1, 2010 00:52 WIB

Jakarta (ANTARA News) - The Transport Ministry looks set to licence two Russian airline companies to fly to Indonesia this year.

The two Russian airlines, Transaero and Aeroflot, would serve direct flights linking the two countries starting at the end of this year, Air Transport Director Tri S Sunoko said in a press statement on Friday.

Transaero which had so far been conducting Russia-Denpasar charter flights twice a week planned to also operate scheduled flights, he said.

Russia's state-owned Aeroflot meanwhile would fly from Moscow to Denpasar vice versa as of December 2010, he said.

The issuance of flight permits to the Russian airlines was part of aviation service cooperation agreed upon by the two nations at their meeting in Russia on April 29-30, he said.

"The MoU (Memorandum of Understanding) made in Jakarta some time ago has been upgraded to RoD (Record of Discussion)," he said.

The RoD contained a number of agreements related to exchange of traffic rights, code sharing arrangements, co-terminalization and aircraft leasing, he said.

Code sharing arrangements are seat sales cooperation carried out by at least two airline companies, he said.

As such, Indonesian-flag carrier Garuda could sell and promote flights to Moscow, Vladivostok, St. Petersburg and Novosibirsk in Aeroflot planes, he said.

On the other hand, Aeroflot could sell connecting flights from Denpasar to Jakarta, Solo and Manado in Garuda planes, he said.

Russian bizmen interested in Indonesia`s mining sector

Antara News, Saturday, February 6, 2010 06:10 WIB

Jakarta (ANTARA News) - Indonesian Ambassador to Russia Awaluddin Hamid said some Russian investors were interested in investing in Indonesia`s mining sector.

"Some Russian businessmen are interested in investing in gold and coal mining," Awaluddin said at the Foreign Affairs Ministry here Friday.

A number of Russian entrepreneurs had joined the Russian Business Academy which had offered to cooperate with Indonesian entrepreneurs to run mining ventures, Awaluddin said.

He said the Russian businessmen appreciated Indonesia`s natural wealth and rapid government response to foreign cooperation opportunities.

The ambassador also urged regional government heads in Indonesia to be more pro-active in promoting their regions` potentials.

In 2009, Indonesia-Russia trade experienced an increase of 48 percent to 1.6 million US dollars, Hamid said.

"Palm oil is the most popular commodity in Russia, even the market is still asking for additional supplies," he said.

Russia to learn hajj pilgrimage management from Indonesia

Antara News, Saturday, February 6, 2010 06:35 WIB

Jakarta (ANTARA News) - The mufti of Russia`s Muslim community wants hajj pilgrimage organizers in his country to learn better ways of doing their job from Indonesia, Indonesian Ambassador to Russia Hamid Awalludin said.

"Therefore, a Religious Affairs Ministry team will go to Russia in March to give trainings on hajj pilgrimage management, including on the system, quotas, embarkation and pilgrims food provision," he said.

Russia`s mufti had chosen Indonesia as this country annually sends the largest numbers of people on the hajj pilgrimage in the world.

Currently, he said, there were 24 million Muslims in Russia out of a total population of f 128 million.

Besides, Russian bankers were also interested in studying Indonesia`s Islamic banking system , Awalludin said.

Three universities launch Bahasa Indonesia-Russian dictionary

Antara News, Monday, February 1, 2010 21:02 WIB

Jakarta (ANTARA News) - University of Indonesia (UI)`s European Studies Center, in cooperation with Moscow State University and St Petersburg University in Russia, launched a Russian-Bahasa Indonesia dictionary here on Monday.

Published in conjunction with the 60th anniversary of Indonesia-Russia diplomatic relations, the dictionary was written by a small team of Russian linguists consisting of Assistant Professor Ludmila Nikolaevna Demudyuk of the Asia-Africa Institute of Lomonosov University, Radio Moscow broadcaster for Indonesia Igor Ilyich Kashmadev, Bahasa Indonesia teacher Vladimir Nikolaevich Losyagin and Professor Alexander Konstantinovich Ogloblin from St Petersburg University.

"The dictionary is published considering the dynamic developments in Russia during the past 20 years which have affected word selection there. This project will also help Indonesians when reading Russian text or communicating in the Russian language," Professor Ogloblin said during the dictionary`s launching at the Borobudur Hotel here.

Ogloblin explained the new Russia-Indonesia dictionary also povided transcriptions and ways to pronounce each word.

On the same occasion, Indonesian Ambassador to Russia Hamid Awaluddin said the dictionary could serve as another bridge between the two countries and further enhance their bilateral relations.

Referring to Indonesia-Russia trade relation, he said, in 2009, two-way trade had increased by about 48 percent to US$1.6 million. In the education sector, he added, more and more Indonesian students were eager to study in Russia and the other way round.

"People-to-people links are also increasing. Supporting communication tools such as dictionaries can help smooth relations between the two countries," he said.

RI embassy in Moscow to hold series of expos

Antara News, Saturday, January 16, 2010 23:47 WIB

London (ANTARA News) - The Indonesian embassy in Moscow plans to organize a number of exhibitions this year to mark the 60th anniversary of Indonesia-Russia diplomatic ties.

Indonesian Ambassador to Russia Hamid Awaludin is paying special attention to the effort to enhance economic ties between the two nations, spokesman for the Indonesian Embassy in Moscow Aji Surya said in a statement issued to an Antara correspondent in London on Friday.

The series of exhibitions are part of the efforts to help improve the performance of the Indonesian economy amidst the global economic recovery, Aji said.

Aji said Ambassador Awaludin hoped Indonesian businesspeople to take optimum advantage of the exhibitions to promote their products.

"The participation of the Indonesian businesspeople in the expos is a must if they want to make progress," the ambassador said.

Among the exhibitions will be International World Food Expo and Gift Handicraft Expo to be held in September 2010.

To make the events a success, the embassy will cooperate with the Indonesian Chamber of Commerce and Industry (KADIN), the National Agency for Export Development (BPEN), the Investment Coordinating Board (BKPM), the Secretariat of the Integrated Economic Zones (KAPET), the Batam Authority and regional governments.

Two-way trade between Indonesia and Russia reached an estimated US$1.5 billion last year.

Russia commits early delivery of three Sukhoi fighters

Antara News, Monday, December 21, 2009 23:01 WIB

Jakarta (ANTARA News) - Russia has committed itself to delivering as early as possible the three Sukhoi jet fighters ordered by Indonesia, Indonesian Air Force spokesman Air Commodore FH Bambang Soelistyo said.

"We will help speed up the delivery of the three Sukhoi jet fighters for the Indonesian Air Force," Russian Ambassador to Indonesia Alexander. A. Ivanov was quoted by Bambang as saying on Monday.

Ivanov disclosed his government`s commitment at a closed-door meeting with Air Force Chief of Staff Vice Marshal Imam Sufa`at at the latter`s office.

Bambang said the delay in the delivery of three SU-27SKM Shukoi fighters was merely caused by technical and administrative problems and the Russian government had vowed to solve them soon.

Russia was supposed to deliver the three jet fighters in December 2009 and January 2010. But because of the problems the delivery had been postponed until October 2010.

"We do hope that they will be delivered earlier than October 2010. Three more Sukhoi jet fighters are enough to give the Indonesian air force deterrent capability. And the Russian government highly understands this," he said.

In 2003, Indonesia bought two SU-30MKs and two SU-27SKs from Russia. It signed a US$300 million deal with the Sukhoi manufacturer in 2007 for the supply of six Shukoi fighters.

The six consist of three SU-30MK2s and three SU-27SKMs. The three SU-30SKMs were delivered in December 2008 and January 2009.

Russian investors ready to build tourist resort in Indonesia

Antara News, Thursday, December 17, 2009 18:34 WIB

Tanjungpinang, Indonesia (ANTARA News/Asa Pulse) - Russian investors were ready to develop a tourist resort in Bintan, Riau Islands Province, Mardhiah, head of the integrated Bintan district licensing and investment promotion body, said here Wednesday.

"Russian investors` willingness to invest in this province has been expressed in a meeting with Mr. Oleg Gurbulen, a Russian representative, last Tuesday (Dec. 15)," Mardhiah said here on Wednesday.

Russian investors plan to build a tourist resort at a 55-hectare coastal area at Berakit village, Bintan District. The construction work is expected to start late December 2009 or early January 2010.

Source:

Business in Asia Today - Dec 17, 2009
published by Asia Pulse

RI to purchase trainer, attack aircraft from Russia, China

The Jakarta Post, Jakarta | Fri, 11/13/2009 8:58 AM

Indonesia will purchase new trainer/light attack aircraft from Russia and China as part of an effort to revitalize its primary defense system, says newly sworn-in Air Force chief of staff Vice Marshal Imam Safaat.

He said the new jets, consisting the Yak-130 from Russia and the FTC-2000 Mountain Eagle from China, would replace the squadrons of British Hawk Mk-53 jets and American OV-10 Bronco.

The Air Force has 20 Hawk Mk-53, and eight turboprop-driven OV-10 Bronco aircraft that are around 30 years old.

“We plan to replace them in the next couple of years. We have done feasibility studies for the purchases, and will propose them to the government soon,” Imam said after the handover ceremony at Halim Perdanakusumah Air Force Base in East Jakarta. Imam replaced Marshal Subandrio.

It would be the first time Indonesia purchases warplanes from China and the second from Russia after the United States embargoed the supply of spare parts for its F-5E Tiger II and F-16 Fighting Falcon jet fighters and C-130 Hercules transport planes in 1999 due to human rights abuses mainly East Timor.

The Indonesian Military (TNI) spokesman, Rear Marshal Sagom Tamboen said the reshuffle in the Air Force leadership was conducted to improve its professionalism through the regeneration of leaders.

Sagom added the new Air Force chief was assigned to boost the country’s air defense system by increasing the quality of aircraft and equipment.

“It is our mission to reduce accidents during training and operational work conducted by Air Force personnel to zero,” he said.

Iman said the military aircraft had to be replaced soon because the Air Force had used the existing planes for more than 30 years.

Imam said further that the Indonesian Military had also planned to replace the old F-5E Tiger II jets.

“We expect to replace them by 2013,” he told The Jakarta Post.

Imam declined to mention the prices of the new aircraft, saying he had not yet discussed it with the government.

“They are expensive,” he said, adding the aircraft would be purchased using foreign aid.

Indonesia bought three Sukhoi fighter jets in February this year to strengthen aerial defense following a series of deadly accidents caused by outdated military aircraft.

The country now has seven Sukhoi-type fighters, all of which were purchased from Russia through a credit scheme. Three more are expected later this year.

Indonesia purchased the seven fighter jets from Russia through the seven-year credit scheme at a total price of US$335 million, but does not have to start making payments for five years.

TNI chief Gen. Djoko Santoso said the Air Force would focus on increasing the operational quality of its basic equipment and maintenance.

“That includes the improvement of the Air Force’s radar systems and air control power,” he said.

Sagom said the Air Force would also focus on improving personnel welfare, despite its limited budget, in addition to increasing safety standards for its primary weaponry defense system.

Sagom added that 70 percent of the Air Force’s budget was geared toward the welfare of personnel. The other 30 percent was for the maintenance of equipment and spare parts.

He said the Air Force budget was expected to increase to between Rp 5 trillion ($531.6 million) and Rp 7 trillion next year, up from Rp 4 trillion this year. (nia)

Indonesia Eximbank launched to boost exports

Aditya Suharmoko, The Jakarta Post, Jakarta | Tue, 09/01/2009 2:22 PM

Mahendra Siregar, chairman of Indonesia Eximbank’s board of directors, Finance Minister Sri Mulyani Indrawati and Trade Minister Marie Elka Pangestu talk at the official launch of the Indonesia Eximbank in Jakarta on Tuesday. (JP/R. Berto Wedhatama)

The government has officially launched the Indonesia Eximbank, an agency to help finance exports, particularly by micro-, small- and medium-sized enterprises (MSMEs).

Indonesia Eximbank will boost the number of exporters, which have difficulty securing financing from other financial institutions, Trade Minister Mari Elka Pangestu said Tuesday after the launch ceremony.

"We will identify potential exporters," she said.

Finance Minister Sri Mulyani Indrawati said she expected Indonesia Eximbank to help diversify exports to new destination markets.

The Middle East, Russia, Kazakhstan and Uzbekistan are among the new destination export markets, Mari said.

Fifteen countries to join Tour of Singkarak cycling race

The Jakarta Post, Jakarta | Thu, 04/02/2009 4:06 PM

Fifteen countries have so far expressed commitment to participate in the Tour of Singkarak 2009 cycling race to be held in West Sumatra April 29 to May 3, 2009.

Culture and tourism ministry's director general Sapta Nirwandar said in Jakarta on Thursday that the countries include New Zealand, Japan, Thailand, Taiwan, the Philippines, Malaysia, Iran, Australia, Kazakhstan, Uzbekistan, Russia, and Qatar.

"Around 85 percent of the construction works of new routes for the cycling race has been completed," he said as quoted by Antara state news agency.

Participants of the Tour of Singkarak will cover a total distance of 459 km and compete for a total prize of US$60,000.

The race route is to consist of four segments: Padang-Bukittinggi segment (92.3 km), Bukittinggi-Sawahlunto segment (85.1 km), Sawahlunto-Danau Singkarak segment (90.2 km), and Lake Singkarak- lake Kembar - Lake Singkarak segment (188 km).

The cycling race, which is aimed at promoting tourism in West Sumatra Province, will be accompanied by music concerts, a food festival, and a fun bike event.

West Sumatra Province was visited by a total of 1.4 million tourists, including about 100,000 foreigners, last year, he said.

The province has set a target of receiving at least 1.5 million tourists in 2009.

Russia, Main Target for Indonesia Tourism

Monday, 23 March, 2009 | 16:17 WIB

TEMPO Interactive, Jakarta: Despite the global crisis, the number of tourists coming to Indonesia remains high.

Tourists from Russia have been increasing their visits to Indonesia from year to year.

In 2008, 65,000 tourists from Russia visited Indonesia, 40 percent more than in 2007 when there were 46,000 tourists who came to Indonesia from Russia.

“Russia is one of our main markets in East Europe,” said Sapta Nirwandar, Director General of Marketing from the Tourism and Culture Department at the 16th Moscow International Tour and Travel exhibition last week.

In this exhibition that lasted until last Sunday, Indonesia was represented by 19 organizations including hotels and tour agencies.

IRFAN (Moscow)

Indonesia Rejects Gift of Mirage Airplanes

Friday, 20 March, 2009 | 17:23 WIB

TEMPO Interactive, Jakarta:Indonesia has a gift of one squadron of Mirage combat airplanes from Qatar. According to Defense Minister, Juwono Sudarsono, the offer was rejected because of the limited budget available for their maintenance. “The gift is fine, but the maintenance is costly,” he said in his office yesterday.

The offer was made verbally by the Indonesian Ambassador in Qatar, Rozy Munir, six months ago. According to Juwono, all he needed was for him to send a letter to the Qatar Defense Minister.

At a glance, Juwono said, the eight-year old French airplanes would need high maintenance cost. Meanwhile, the budget of the Defense Department and that of the Indonesian Armed Forces’ budget could not afford such an expense. Moreover, they are currently focusing on the maintenance of cargo planes, such as the Hercules. Juwono added that the gift grant did not mean no costs would be involved. “There would still be costs, like mediator fees,” he said.

The Defense Department refused the offer for other considerations as well. According to Juwono, two problems would occur if the offer was accepted: the budget and the additional burden on the air hitter system, creating chaos to the existing system. The Indonesian Air Force currently owns American F-5 and F-16 combat planes and Russian Sukhois.

In terms of air strike capability, Juwono said, more important is the kind of deterrence technology. Quantitatively, we may not have enough airplanes. “That is why we bought the Sukhoi, even though they are expensive,” he said. Hence, our defensive system is still on a par with Singapore’s, particularly if they buy 24 F-15 airplanes next year.

According to Juwono, the Indonesian Air Force was initially interested in the offer from Qatar. However, the problem would arise in the allocation as well as in the availability of spare parts. “We must be certain the spare part manufacturer will still exist. They could well be extinct,” he said.

Russia offers oil extraction technologies to Indonesia

Tehran Times, March 8, 2009

JAKARTA (RIA Novosti) - Russia’s Petros company and Indonesia’s Nuansa Group have signed a memorandum on joint implementation of Russian technologies in the development of abandoned oil fields in Indonesia. 

“There are many oil fields in Indonesia whose exploration has been abandoned for various reasons. We need new technologies to continue their development, and we are glad that we can now use Russian technologies,” Nuansa Group president Susanto Suparso said at the signing ceremony late on Thursday. 

Petros company was established in 1991 on the basis of a research institute in Moscow, and specializes in the development of technologies allowing more efficient oil extraction. 

“Technologies for the development of abandoned oil wells that the Russian company is offering to our Indonesian partners are very effective from an ecological standpoint, and more cost-efficient than those offered by Western firms,” said Alexander Ivanov, Russian ambassador to Indonesia. 

The Russian firm plans to initially implement its technologies at abandoned oil deposits in East Kalimantan on the Island of Borneo, and in central parts of the Java Island. 

According to the Oil & Gas Journal, Indonesia’s proven oil reserves amounted to 4.3 billion barrels in January 2007.