Indonesia Geothermal Sector Attracts Panax, Mitsubishi, BP, Chevron

Renewable Energy World, Leslie Blodgett, GEA, October 18, 2012

WASHINGTON, D.C. -- Indonesia has had the lowest volatility in economic growth of any OECD or BRIC economy over the past decade, while its economy in the short term is conjectured at close to 7% growth per year, according to Proactiveinvestors.com.au.

Concurrently, recent efforts by the Indonesian government to attract geothermal companies seem to be having an effect. At a September meeting in Washington DC on Renewable Energy Opportunities in Indonesia, hosted by the US-ASEAN Business Council, speaker Joel Kopp (U.S. Embassy Jakarta) recounted the efforts of Indonesian leaders, who have set a separate feed-in tariff for geothermal at between 10 and 18.5 cents-per-kWh. Also, projects under 10 MW are required to be purchased by state-owned utility Perusahaan Listrik Negara (PLN). Kopp added that PLN has made improvements to their reliability, as well.

Australian Panax Geothermal is making strides in Indonesia. With three key geothermal projects scheduled to begin production in Indonesia over the next three to four years, Kerry Parker, managing director, commented to press on the company’s growth in Indonesia: “Panax has long recognized the investment potential in Indonesia, having launched several projects within the region and with plans to expand on our current interests,” Parker said. Projects for Panax include the recently negotiated power purchase agreements for its Sokoria and Dairi Prime geothermal projects, each with a planned initial capacity to generate 30 MW. Agreements are with Indonesian electricity regulator PT PLN and the Indonesian Government.

One company with increasing interest is Mitsubishi Corporation, which has agreed to acquire 20% shares of Star Energy Geothermal Pte Ltd ("SEGPL"). SEGPL manages operation of the 420-MW Wayang Windu Geothermal Power Project Plant in Java Island, one of the world's largest geothermal resources. This acquisition is the country’s “first entry into the Indonesian power industry and its first operation of a geothermal power plant,” according to the release. Mitsubishi could develop and operate multiple geothermal power plants in Indonesia in the future, including an expansion of Wayang Windu.

Additionally, oil and gas giant BP (UK) could expand its business in Indonesia, it said recently. Energy and Mineral Resources Minister Jero Wacik told The Jakarta Post the government was curious as to whether BP would enter the geothermal energy sector after US-based Chevron “had successfully become the world’s largest geothermal power producer after years of operating in Indonesia.”

Chevron Geothermal’s policy, government and public affairs manager, Ida Bagus Wibatsya was quoted that the development could create healthy competition among geothermal energy developers: “It will be very positive for the development of the geothermal energy industry as well as supporting the government’s programs on renewable energy resources.”

This article was originally published in GEA's Geothermal Energy Weekly and was republished with permission.

A geothermal energy project in Tibet. (Photo/Xinhua)

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"Recalibration of Free Choice"–  Mar 3, 2012 (Kryon Channelling by Lee Caroll) - (Subjects: (Old) Souls, Midpoint on 21-12-2012, Shift of Human Consciousness, Black & White vs. Color, 1 - Spirituality (Religions) shifting, Loose a Pope “soon”, 2 - Humans will change react to drama, 3 - Civilizations/Population on Earth,  4 - Alternate energy sources (Geothermal, Tidal (Paddle wheels), Wind), 5 – Financials Institutes/concepts will change (Integrity – Ethical) , 6 - News/Media/TV to change, 7 – Big Pharmaceutical company will collapse “soon”, (Keep people sick), (Integrity – Ethical)  8 – Wars will be over on Earth, Global Unity, … etc.) - (Text version) 

“…  4 - Energy (again)

The natural resources of the planet are finite and will not support the continuation of what you've been doing. We've been saying this for a decade. Watch for increased science and increased funding for alternate ways of creating electricity (finally). Watch for the very companies who have the most to lose being the ones who fund it. It is the beginning of a full realization that a change of thinking is at hand. You can take things from Gaia that are energy, instead of physical resources. We speak yet again about geothermal, about tidal, about wind. Again, we plead with you not to over-engineer this. For one of the things that Human Beings do in a technological age is to over-engineer simple things. Look at nuclear - the most over-engineered and expensive steam engine in existence!

Your current ideas of capturing energy from tidal and wave motion don't have to be technical marvels. Think paddle wheel on a pier with waves, which will create energy in both directions [waves coming and going] tied to a generator that can power dozens of neighborhoods, not full cities. Think simple and decentralize the idea of utilities. The same goes for wind and geothermal. Think of utilities for groups of homes in a cluster. You won't have a grid failure if there is no grid. This is the way of the future, and you'll be more inclined to have it sooner than later if you do this, and it won't cost as much….”

British Petroleum to develop geothermal energy in indonesia: president

Antara News, Sat, May 26 2012

Yogyakarta (ANTARA News) - British Petroleum has agreed to participate in the development of geothermal energy in Indonesia, President Susilo Bambang Yudhoyono said here on Friday.

"BP in talks just now agreed to participate in the development of geothermal energy in Indonesia thus to increase our power capacity," he said at a press conference.

President Yudhoyono said the agreement was the result of his talks with BP CEO Bob Dudley at Gedung Agung.

He said so far geothermal energy in the country has not yet been exploited well despite the fact that the country has the world`s biggest reserves.

He said the energy source has not yet been developed well due to investment challenges.

He said although incentives had been given the sector has not developed well. He said the oil subsidy had also made the price of geothermal energy not competitive yet.

The President reiterated that geothermal energy is one of the future environmental friendly renewable energy sources.

President Yudhoyono on the occasion also expressed appreciation to BP that has agreed to transfer 230 cubic feet of gas per day from its Tangguh field in Papua to domestic industries. The gas from the field had so far been exported.

President Yudhoyono said the agreement would support the economic development especially domestic industrial development.

He said the government in the future must make efforts to re-negotiate its working contracts so that the gas produced by fields in the country could be sold to the domestic market.

"In view of our economic challenges the government had actually conducted re-negotiations to make the gas produced in Indonesia not to be totally sold abroad which is certainly not fair and correct," he said.

He said however the government would always respect the contracts that have been signed. "I honor the contracts but I also appeal to investors, business leaders in Indonesia to understand the situation in Indonesia. If the contracts are considered not right and not quite fair we, with a good will, wish to improve them and renew them," he said.

Editor: Aditia Maruli

Unilever invests Rp 1.1t in N. Sumatra

The Jakarta Post, Jakarta, Thu, 09/29/2011

Multinational company, Unilever, is planning to open a palm-processing plant in Semangke, North Sumatra with a total investment of Rp. 1.1 trillion (US$122 million).

“Unilever is developing a new facility in Semangke, North Sumatra. It is a Fatty Acid Oil Chemical plant,” Investment Coordinating Board Chief Gita Wirjawan said on Thursday as quoted by Antara news wire.

Gita was among ministers who accompanied President Susilo Bambang Yudhoyono in welcoming Unilever top officials at the State Palace on Thursday.

Visiting Unilever top officials included Chairman Michael Treschow; CEO Paul Polman; Chief Supply Chain Officer Pier Luigi Sigismondi; President Director of PT Unilever Indonesia Tbk Maurits Lalisang, and Corporate Secretary Sancoyo Antarikso.

Gita said it would take two years to finish the new facility.

Gita said the company was also committed to investing US$600 million for its expansion in Indonesia.

“It has a number of plants in Java. It accepted our suggestion to build plants outside Java,” he said.

The company will cooperate with 10 firms to invest 50 million euro in Nusa Tenggara.

Shell plans to enter upstream market in Indonesia

Hans David Tampubolon, The Jakarta Post, Kuala Lumpur, Sat, 07/09/2011

Royal Dutch Shell Chief Executive Officer (CEO) Peter Voser says that his company plans to enter the upstream market in Indonesia within the next few years while further developing its downstream business.

“For Shell, Indonesia plays an important role in Asia, in line with population growth, market development and significant demand,” Royal Dutch Shell CEO Peter Voser said during a discussion with journalists at the Sepang International Circuit in Kuala Lumpur, Malaysia, on Friday.

Speaking about the future of energy, Voser said Shell had three pillars for the future, namely more energy, cleaner energy and smarter energy. For more energy, Shell is developing new sources of oil and gas that the world will need.

“Renewable energy sources will supply up to 30 percent of global energy by 2050, while now it is only 13 percent. Shell invested over US$100 billion from 2011 to 2014 to develop new energy. In 2010 we invested more than $1 billion for research and technology development,” Voser said.

London Calling for Young Indonesian Innovators

Jakarta Globe, Sylviana Hamdani, June 27, 2011

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

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

Liverpool opens Indonesian academy

The Jakarta Post, Jakarta | Sat, 05/14/2011

Liverpool legend Phil Neal officiated the opening of the Liverpool Football Club (LFC) Academy Indonesia in Jakarta on Saturday, the first of its kind in Asia.

The opening ceremony was held at Sumantri Sports Stadium in Kuningan, South Jakarta. As part of the event, Neal gave a coaching clinic to a number of Indonesian kids aged between 7 and 11 years old.

Students of the LFC Academy Indonesian will be automatically registered as members of the International Junior LFC Academy.

Another British soccer club, Arsenal, and Spain’s Real Madrid previously opened similar schools in Indonesia, tribunnews.com reported.

BP signs Indonesian coalbed methane deal

The Jakarta Post, Associated Press, Jakarta, Fri, 04/01/2011

BP PLC says it has signed four new production sharing contracts with Indonesian partners to access coalbed methane in the country.

BP said Friday that the four areas, covering some 4,800 square kilometers in the Barito basin of South Kalimantan, will complement existing operations in Indonesia.

BP has a 44 percent stake in one contract with Pertamina holding the remainder, and a 45 percent stake in the other three contracts with PT Sugico Graha holding the remainder.

Chief Executive Bob Dudley says the contracts awarded by the Indonesian government will tap BP's "significant experience and expertise in the development of unconventional gas."

The London-based company has recently signed agreements to access new resources in Indonesia, China, India and Australia.

Shell to open lubricant plant in Indonesia

Rangga D. Fadillah, The Jakarta Post, Jakarta | Sat, 02/12/2011

Anglo-Dutch Royal Dutch Shell announced Friday that the company would set up a US$100 million lubricant plant in the western part of Java with a total capacity of 100,000 tons per year.

PT Shell Indonesia president director Darwin Silalahi said the plant would be the company’s production hub, not only to supply the Indonesian domestic market, but also the Asian regional market.

“We’ve been discussing with the Industry Minister [M.S. Hidayat] about what incentives Shell can

get to make the plant competitive for the export market,” he told reporters after meeting the minister in Jakarta.

Darwin said that in addition to fulfilling domestic demand, lubricants from the planned plant would be exported to emerging Asian economies such as China, India and Vietnam, whose demand has been rising over the past several years.

The plant would start operations in late 2013 or early 2014, Darwin said. He estimated that the plant’s construction process would absorb around 700 workers, while its operation would open around 250 new job opportunities.

Industry Ministry director general of upstream chemical industry Tony Tanduk reported that Shell was eying opportunities to profit from the rapid growth of Indonesia’s automotive industry.

“That remarkable growth has caused the demand for lubricants to rise significantly,” he said.

Indonesia’s automobile sales reached 764,710 units in 2010, while motorcycle sales exceeded 7 million. The Indonesian Automotive Industry Association (Gaikindo) projects car sales may top 850,000 this year.

Tony said that the government was now considering several incentive options for Shell. Besides tax allowances, he said the company requested the government lift import duties for raw materials.

Hidayat explained that in the near future the Investment Coordinating (BKPM) would submit a

revision draft on the 2008 government regulation on income tax incentives for investors to accommodate Shell’s requests.

The 2008 government regulation on income tax incentives for investors stipulated that only investors intending to build oil and gas refineries are eligible for an income tax reduction of 5 percent of their total yearly investment for the first six years of the project.

“We want that by the revision, companies committed to building downstream oil and gas businesses will also get that incentive,” Hidayat said.

He revealed that the company was currently conducting studies on suitable locations for the planned lubricant plant. There were two potential candidates; Marunda in North Jakarta and Cilegon in Banten province, he added.

Investments from Shell would provide positive momentum for Indonesia to boost its efforts in developing the downstream industry, Hidayat said. He continued that this year he would focus on luring more investment to the sector.

Darwin said that the $100 million lubricant plant would be the first phase of the company’s investment in downstream businesses.

“If the progress is good, we’ll have no doubt to expand the plant capacities in the future,” he said.

However, he was still waiting for the government’s decision on what incentives the company would receive, because other countries had also offered interesting incentives that might boost the company’s products’ competitiveness.

BP awarded exploration block in Indonesia

The Jakarta Post, The Associated Press, London | Fri, 11/26/2010 7:28 PM

BP PLC says it has been awarded an oil and as exploration block in Indonesia and plans to commence seismic operations in the "near future."

The London-based company said Friday that it has received a 100 percent interest in the North Arafura oil and gas production sharing contract in onshore Papua Province.

The block is located on the coast of the Arafura Sea, 480 kilometers (300 miles) southeast of the BP-operated Tangguh plant, covering an area of just over 5,000 square kilometers (1,900 square miles).

BP has over 35 years experience in Indonesia, including its Tangguh LNG operations in Papua Barat province, and is one of the largest foreign investors in the country.

BP shares are down 1.5 percent at 430.75 pence ($6.76) on a lower overall London Stock Exchange.

Indonesian Government Opens 4 New Blocks for Oil, Gas Exploration

Jakarta Globe, Ririn Radiawati Kusuma | November 18, 2010

Jakarta. Indonesia, Southeast Asia’s largest economy, has awarded four oil and gas blocks to local and foreign companies, including BP Exploration Indonesia, a unit of oil major BP, a government official has confirmed.

Indonesia has awarded four oil and gas blocks to local
and foreign companies. (AFP Photo)

As much as $28 million was expected to be spent on exploration activities in the newly opened blocks, including $4.2 million going straight to the government for so-called signature bonuses, Evita Legowo, director general of oil and gas at the Ministry of Energy and Mineral Resources, said on Thursday.

Aside from BP Exploration Indonesia, the other companies awarded the oil and gas blocks were Ephindo Oil and Gas Holding, the Awe Consortium and Mitra Energy.

BP Exploration Indonesia is set to spend $3.4 million on exploration in the North Arafura block in Papua.

Ephindo was granted rights to explore the North Sokang block in Riau, with an investment plan totaling $10.2 million.

The Awe Consortium, which consists of Baruna Recovery Energy and Sillo Maritime Perdana, was awarded the Titan block in Java, although no details were provided about which provinces would be covered by the project.

Its total investment is estimated at $8.3 million.

Mitra Energy is set to explore the Bone block in South Sulawesi, with a total investment of $6.1 million.

“The companies have three years to explore the oil and gas potential of those blocks,” Evita said.

Indonesia has so far this year awarded 42 blocks across the country for exploration.

While the North Sokang block is estimated to hold 600 billion cubic feet of gas, and the Titan block is believed to hold 300 bcf, Evita said the companies might find more oil and gas reserves in those blocks.

The newly opened blocks are expected to help the country meet its increased oil production targets over the coming years.

The government had hoped to see oil production reach 965,000 barrels per day for the year.

But a number of recent incidents, including a major leak in a pipeline operated by Transportasi Gas Indonesia at the end of September that caused disruptions to about 20 percent of the nation’s total production capacity, have made reaching the ambitious target all but impossible.

Chevron Pacific Indonesia’s Duri oil field in Riau also stopped production in October after one of its pipelines burst. CPI accounts for some 40 percent of the nation’s total oil output.

Oil production is now forecast to reach an average of 955,000 bpd for the year, lower than the 2010 state budget target, Evita said in September.

Indonesia has been struggling to attract foreign investment to develop new oil and gas fields.

Although it has offered incentives, including favorable tax treatment and production sharing, an uncertain regulatory environment has hampered investment in the sector.

Seven foreign investors to build cocoa plants in RI

Antara News, Monday, October 18, 2010 22:30 WIB

Jakarta (ANTARA News) - Seven foreign investors have expressed keen interest in building cocoa processing plants in Indonesia following the imposition of duties on cocoa exports as of April 1, 2010.

The seven investors are ADM Cocoa and Olam International of Singapore, Guanchong Cocoa of Malaysia, Cargill and Mars of the United States, Armajaro of Britan, and Ferrero of Italy, Director General of Agribusiness at the Industry Ministry Benny Wachjudi said on Monday.

"I don`t know when the investors will start investing. But they have asked for clarification on the possibility of the government reviewing the imposition of duties on cocoa exports," he said.

Benny said Guanchong Cocoa was likely to build a cocoa processing plant with an annual capacity of 50 thousand tons early next year.

In addition, he said local cocoa producer PT Bumitangerang Mesindotama would also double the production capacity of its plant in Tangerang, Banten province, to 80 thousand tons per year.

The expansion project which would cost an estimated US$40 million would be completed in eight months` time, he said.

Benny said a number of downstream cocoa processing plants had begun to revive their activities after they ceased operation.

Chairman of the Indonesian Cocoa Producers Association (AIKI) Piter Jasman said the imposition of duties on cocoa exports had a positive impact on the growth of downstream industries.

"Fifteen AIKI members have raised their production capacity. The national cocoa powder and butter production is projected to reach 300 thousand tons in 2011," he said.

KPPU Says All Clear for Unilever Acquisition

Jakarta Globe | October 14, 2010

Jakarta. The Business Competition Supervisory Commission says it has no objection for Unilever Indonesia Holding BV to acquire Sara Lee Body Care Indonesia after it found no evidence of monopolizing practices.

The commission, also known as the KPPU, began a comprehensive evaluation of the companies’ products on July 9, particularly roll-on deodorants and men’s hair cream, after a preliminary study failed to reach a conclusion.

Under competition regulations, the merged company is not allowed to have more than a 50 percent share of the market for its products.

On Thursday, the KPPU said in an e-mailed statement that its evaluation had found no anticompetitive behavior that would negatively affect consumers because the markets for each product made it difficult to fix prices.

With roll-on deodorants, the proposed merger was found not to impact on other players’ entry into the market.

“Making deodorants does not require highly sophisticated technology, so the barriers to enter the market is relatively low,” the KPPU said.

As for men’s hair cream, the commission said the already saturated market would not allow for one company to dominate the market.

Franky Jamin, general manager at Unilever Indonesia, said the KPPU had never objected to the takeover bid.

In September 2009, Unilever’s parent company announced that it would acquire Sara Lee’s personal care brands in a deal worth $1.9 billion.

The KPPU requires companies to notify it of proposed mergers and acquisitions, or face billions of rupiah in fines.

UK envoy sends off 26 scholarship recipients

Antara News, Wednesday, September 8, 2010 15:50 WIB

Jakarta (ANTARA News) - British Ambassador to Indonesia Martin Hatfull on Tuesday sent off 26 Indonesian civil servants who had received scholarships to study at major universities in his country.

In his remarks on the occasion, Hatfull said the scholarship program , funded by the British embassy, British Council and several British institutions in Indonesia, was expected to help further strengthen the existing relationship between the two countries..

"I am delighted that the UK government is able to fund so many talented representatives of Indonesia`s national and local government to develop their skills further in the UK. I am sure that the knowledge and experience they gain will be of real value in helping Indonesia achieve its goals of growth, prosperity and economic reform," he said.

The 26 scholarship recipients came from three Indonesian state institutions such as the Home Affairs Ministry, Finance Ministry and the National Development and Planning Board (Bappenas) who had been selected from 40 applicants in a process started in May 2010.

The British envoy said the program was intended to support Indonesia`s decentralization policies that focus on public service delivery, fiscal decentralization, capacity building and governance also monitoring and evaluation.

The program also aimed to provide high quality decentralization education for central and local government officials on important aspects of public service delivery, principally fiscal decentralization and social accountability.

All the 26 young professionals would pursue a one-year master`s degree programs at several UK universities, namely in Southampton, Bristol, Bradford, Birmingham, Birkbeck New Castle and Manchester.

According to British Council scholarships officer Rowena Rompas, the newly launched program was expectedly to provide more education to Indonesian professional government officers.

Third Biggest European Investor in Indonesia

Kompas.com, Kamis, 5 Agustus 2010 | 17:42 WIB

LONDON, KOMPAS.com - Italy is the third biggest European investor country in Indonesia after Britain and the Netherlands with an investment value of US$4.05 million in the first quarter of this year, a diplomat said.

"Italy’s investment of US$4.05 million in the first quarter of 2010 increased 200 percent compared with that in the same period a year earlier which stood at US$1.4 million," Musurifun Lajawa, counselor for social and cultural affairs of the the Indonesian Embassy in Rome, said in a press statement received by ANTARA here on Thursday.

He said that Italy’s investment in the third quarter of 2010 was made in three projects while that in the first quarter of 2009 was for four projects.

According to the Investment Coordinating Board (BKPM), Italy’s investment in Indonesia in the first quarter of 2010 increased 192.9 percent.

Italy was in the fifth position on the list of European investors in Indonesia in the January - December 2009 period after the Netherlands, Britain, Switzerland and Germany. During the period, Italy’s investment reached US$41.02 million. In the last nine years (January 1990 - 2009), Italy’s investment ranked the sixth position after Britain, the Netherlands, Germany, France and Switzerland. Is investment in this period reached US$660.90 million.

Based on the data, Italy’s total investment in Indonesia in the January-February 2010 period amounted to US$501.59 million, which was a 4.8 percent increase compared with that in last year’s corresponding period of US478.51 million.

Int’l medical team provides free services

M. Azis Tunny, The Jakarta Post, Ambon | Sat, 07/31/2010 11:48 AM

Medical teams from various countries collaborated in the 2010 Pacific Partnership Mission to provide free medical services to thousands of coastal residents in Maluku.

The humanitarian mission was carried out for three days from July 27 in a number of locations in the region. It was part of the Sail Banda event, which will be attended by President Susilo Bambang Yudho-yono on Aug. 3.

More than 17,000 people received health services, said Pacific Partnership Mission Commander Capt. Lisa M. Franchetti. Around 105 doctors were involved in the mission, consisting of 40 doctors manning onshore health posts and 65 doctors aboard the USNS Mercy hospital ship.

“Medical examinations and treatment are conducted at the health posts on land as well as aboard the USNS Mercy,” Franchetti told The Jakarta Post at a health post in Pelauw village, Haruku Island, on Thursday.

More than 10 health posts have been set up on Seram, Ambon and Haruku islands to support the

program. To reach posts outside Ambon city, medical teams and logistics were airlifted by two helicopters on stand-by aboard the USNS Mercy.

“The most common sickness is sore eyes. More than 500 patients come each day to have their eyes treated. Besides medicine, we also provide eyeglasses. Many of the residents also complain about internal illnesses and a number of common ailments,” Franchetti said.

Ailments requiring surgery on board the USNS Mercy include kidney problems, prostate cancer, hernia and cleft palate, Franchetti said.

Members of the medical team on board the USNS Mercy are able to perform between 150 and 200 surgeries daily, while the on-land health posts provide medical treatment for common ailments, such as sore eyes, toothaches, internal diseases and skin ailments.

The medical workers mark the patients with colored wrist bands according to their ailments, such as red for sore eyes, purple for toothaches and yellow for common

illnesses.

Data on patients and their ailments are recorded on computers using the Civil Humanitarian Information Management Expeditionary System (CHIMES).

“We will give this data to the Maluku governor after our mission in Maluku is over, and we will also submit it to the Health Ministry,” Franchetti said.

Besides the presence of the USNS Mercy from the US, a number of countries have also dispatched hospital ships. Singapore deployed its RSS Endevour, while Australia contributed the services of two heavy landing craft (HLC) — HMAS Labuan (L128) and HMAS Tarakan (L129).

Other countries taking part in the program include Canada, Cambodia, New Zealand, the UK and Indonesia. As many as 17 international relief organizations also took part in the mission by sending activists and relief aid.

Taxi company leaves Pertamina, shifts to Shell

The Jakarta Post, Jakarta | Wed, 07/28/2010 9:32 AM

Taxi company PT Gamya Taksi Group is negotiating a cooperation agreement with PT Shell Indonesia after 270 units or one fourth of its fleet could not operate due to broken fuel pumps.

Gamya President Director Mintarsih A Latief said replacing the taxis’ fuel tanks would not solve the problem if the cause of the damage was still around gasstations selling subsidized fuel produced by state oil and gas company PT Pertamina.

“There is no guarantee that the same problem will not recur if we change the fueltanks,” she told Kontan business daily on Tuesday.

Preliminary investigation found that the Pertamina fuel bought from gas stations in Kreo,Pondok Bambu and on Jl. TB Simatupang contained sulfur. Gamya claims to have lost up to Rp 162 million in revenue per day due to the damage.

As of Tuesday 50 taxis could not operate due to limited stock of fuel pump components.

Mintarsih said the use of high-octane fuel from Shell would force her company to increase service fee. “If we cannot find another way, we will have to increase thetariff,” she added.

The multinational oil company only sells non-subsidized fuels.

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BP Indonesia says no change to Indonesian strategy

Reuters, Tue Jul 27, 2010 11:57pm EDT

July 28 (Reuters) - BP Indonesia, a unit of BP plc (BP.L) (BP.N), on Wednesday said there was no change to its strategy or plans in Southeast Asia's biggest economy and that it wants to expand and find new opportunities in Indonesia.

The statement follows BP's announcement on Tuesday that it plans to sell $30 billion in assets over the next 18 months to help cover its liabilities resulting from the Gulf oil spill.

"In Indonesia, there is no change to our strategy and plans. Indonesia is an important area for BP," BP Indonesia president, William Lin, said in an email to Reuters.

"We will continue to manage our existing operations in a safe and efficient manner, as well as continuously look to grow these assets and access new opportunities through further development, exploration and renewal," he said.

BP has a 37.16 percent stake in Indonesia's Tangguh liquefied natural gas (LNG) project in Papua, in the easternmost part of the sprawling archipelago, which has capacity to produce 7.6 million tonnes per year (tpy) through two trains.

The Tangguh project cost about $5 billion. Other partners in the project include China National Offshore Oil Corp (CNOOC) (0883.HK).

Tangguh has several foreign supply contracts, including a 2.6 million tpy contract with CNOOC, while U.S. firm Sempra Energy (SRE.N) has a 20-year contract to lift 3.6 million tpy, and there are also supply contracts withSouth Korean firms K-Power and POSCO (005490.KS).

BP also has a stake in Sanga Sanga gas field in East Kalimantan, Borneo island, and has also participated in a coalbed methane (CBM) project in the same area in East Kalimantan.

(Reporting by Muklis Ali; Editing by Sara Webb)

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UK keen on helping RI’s environment agenda

The Jakarta Post | Sat, 07/24/2010 9:29 AM

The United Kingdom is committed to helping Indonesia tackle the impacts of climate change by providing environmentally friendly technological assistance, the Indonesian government says.

Following a closed-door meeting with visiting Minister of State for the Foreign and Commonwealth Office Jeremy Browne, Coordinating Economic Minister Hatta Radjasa said Friday that the commitment was a follow up to an earlier agreement with the UK government, which touched on, among others, the use of carbon capture storage in Indonesia.

“We are still discussing the implementation of the commitment,” Hatta said, adding that the two countries were also exploring other areas of cooperation on climate change.

Browne is the first UK government minister to visit Indonesia since a new administration took office earlier in May.

Hatta said Browne praised Indonesia’s achievements during the reform era. “Indonesia is moving forward. It has achieved many significant changes,” Hatta said quoting Browne.

Reform programs that had been carried out by the government made Indonesia more attractive as an investment destination to UK businesses, Hatta said, further citing Browne.

The Coordinating Economy Ministry said total UK investment in Indonesia reached US$587.7 million for 61 projects in 2009, higher than 2008’s $513.4 million for 58 projects.

Total trade between Indonesia and the UK decreased from $2.6 billion in 2008 to $2.3 billion in 2009, with Indonesian exports worth $1.4 billion and imports around $844 million.

Hatta said the UK trusted Indonesia’s ability to preserving natural resources and the ecosystem.

“In this context, I hope you still remember Prince Charles cited Jambi as a model in preserving wildlife and allocating funds to support this project. It shows UK government’s trust in our efforts,” he said.

In November 2008, the Prince of Wales visited the Harapan Rainforest project in Batanghari regency, designed to restore the forest’s ecosystem and save endangered species. It was developed by a consortium consisting of Burung Indonesia, International Bird Life and the London-based Royal Society for the Protection of Birds. The project, which operates in more than 50,000 hectares of forest, is part of the Prince’s Rainforest Project.

Hatta said infrastructure was a key topic discussed with Browne on the development of investments.

In a meeting at the Coordinating Economy Ministry on Thursday, the ministry asked the National Land Body (BPN) to accelerate the drafting of a law on land development for the public, he said.

“We will speed up infrastructure development because we truly understand that the bottlenecks are related to it,” he said, adding that investors saw a lack of infrastructure as the biggest obstacle while talking about public private partnerships (PPP).

In a recent statement, Investment Coordinating Board (BKPM) head Gita Wirjawan said the government aimed to attract Rp 163 trillion ($18.09 billion) in investments this year due to an improved investment climate.

According to the board’s Blue Book, the government is targeting investments of about Rp 200 trillion to Rp 300 trillion per year, leading to a total Rp 1,500 trillion in domestic and foreign direct investments in five years.

Gita said he believed that about Rp 450 trillion of the total targeted investment could be achieved in the next two or three years, most of which would prioritize infrastructure projects. Most potential investors came from the Middle East and Asia, including Taiwan, Korea, Japan, China and India. (ebf)

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Shell eyes another gas treatment project

Alfian, The Jakarta Post, Jakarta | Thu, 06/24/2010 10:42 AM

Shell Global Solutions (Shell GS), an oil and gas upstream technology provider and a subsidy of Royal Dutch Shell Plc., is seeking to double its presence in Indonesia by launching another gas treatment project within the next two years.

Currently, the company has secured a deal to provide gas treatment technology for state oil and gas firm PT Pertamina’s project at the Matindok gas field in Central Sulawesi.

“We expect to double our presence in the next two years. Thus we hope we can secure at least one more project in that period of time,” Shell GS’s business development director Johan Hazejager told The Jakarta Post in an interview Wednesday.

Derek Ritchie, Shell GS’s Asia Pacific upstream technology commercialization and licensing manager, said the company had been in talks with several Indonesian gas project developers.

“There are 10 opportunities we are pursuing now. These [deals] are in different stages,” Ritchie said without giving details of the projects’ owners or locations.

Ritchie said Shell GS provided technology for gas treatment and gas processing. Gas treatment involves the separation of gas from contaminants such as CO2 and sulphur.

Processing involves the various steps in preparing the gas for supply to customers.

“The 10 opportunities are for gas treatment, but we are also looking for opportunities for gas processing in the future,” Ritchie said.

Shell GS sells a sulphur recovery technology called Thiopaq to Pertamina for use in its Matindok project.

The company said seven Thiopaq applications were in commercial operation worldwide and 20 other units were in the start-up, construction, or design phase.

The implementation of the technology in the Matindok field is awaiting government approval for the field’s development plant.

Ritchie declined to mention exact figures on how much Pertamina was spending on the technology, but said Thiopaq usually cost less than 3 percent of the project’s total value.

Pertamina estimated that the Matindok field development would require as much as US$800 million in investment.

Royal Dutch Shell Plc., Shell GS’s parent company, has also been short listed by Pertamina as one of seven potential partners in developing the gas-rich Natuna D-Alpha block.

In Indonesia, Shell Plc. is better known for its fuel retailing business. Through its local unit, PT Shell Indonesia, the company operates 43 fuel stations.

Shell Indonesia (Shell) plans to open five more petrol stations in Jakarta and Surabaya in East Java within the next few months, the company’s executive said early this month.

Shell public management consultancy manager Esto Sunarso said that three of the stations would be in Jakarta and the other two in Surabaya.

One station will start operating on Jl. Fatmawati, South Jakarta, another two in Kebon Jeruk, West Jakarta, and one on Jl. Ahmad Yani, North Jakarta, this month.

The two Surabaya stations will open on Jl. Mayjen Sungkono and Jl. Ahmad Yani next month, he said.