RI natural gas reserves estimated at 188 TSCF

Bengkulu, July 29 (ANTARA) – Indonesia has natural gas reserves estimated to total 188 trillion standard cubic feet (TSCF) or more than 40,314 billion barrels of oil while only 8.2 billion cubic feet (BCFD) has so far been extracted, an energy official said.

The existing reserves are enough for more than 50 years, Tubagus Haryono, head of marketing at the government`s oil and gas development agency (BP Migas), said here Friday.

"The natural gas potentials will continue to be exploited to meet local industry`s demand, including the needs of power generation plants," he said.

The usage of natural gas had yet to reach its optimum level, he said, adding that more than 55 percent of the natural gas produced was exported.

More than 71 percent of the natural gas reserves is located offshore, with the largest reserves found off Natuna Island (33.3 percent), East Kalimantan (30.2 percent), Irian Jaya (15.1 percent), Aceh (6.8 percent) and South Sumatra (6.4 percent). The discoveries by Arco, now BP, in the Wiriagar and Berau fields located offshore Irian Jaya represent some of Indonesia`s most promising recent finds.

In the future, he said, natural gas would primarily be developed to meet domestic demand.

 

 

 

 

 

RI, China seal economic and defense deals

 

President Susilo Bambang Yudhoyono and Chinese President Hu Jintao witnessed the signing of five agreements on the economy, tsunami assistance projects, defense technology and education at the Great Hall of the People in Beijing on Thursday afternoon.

The signing marked a significant improvement in relations between the two countries.

The agreements follow up on an earlier deal signed in Jakarta to boost trade and investment between the countries.

In his opening remarks at the signing ceremony, Susilo expressed gratitude for China's understanding of his having to delay his visit from July 13 because of fuel shortages at home.

Earlier in the day, Susilo met with Chinese Premier Wen Jiabao and the two leaders discussed efforts to strengthen bilateral ties.

Presidential spokesman Dino P. Djalal told the press that Jakarta and Beijing had agreed to set up an investment promotion center to increase two-way investment between the countries.

China also signed deals with Indonesia on four infrastructure projects: the construction of the Tuban refinery in East Java, the development of a 158-kilometer railway line connecting Cirebon in West Java and Kroya in Central Java, the construction of a power plant and the development of the Jatigede dam in West Java.

The Tuban refinery, to be build by state oil and gas company Pertamina in cooperation with China Petroleum & Chemical Corp., would be Indonesia's 10th refinery.

Indonesia currently has nine small and large refineries with a total processing capacity of close to one million barrels per day (bpd) of crude oil.

The construction of the Tuban refinery is expected to begin next year at the latest. When it is completed, the refinery will have a processing capacity of between 150,000 bpd and 200,000 bpd.

On the trade front, Dino said Jakarta and Beijing wanted to see two-way trade rise to US$30 billion by 2010, from $13 billion in 2004 and $10.2 billion in 2003.

Indonesia's trade with China could soon surpass its trade with the United States, which reached $13.5 billion in 2003.

Chinese exports to Indonesia include electrical machinery and equipment, electronics goods and home appliances, textiles and motorcycles. China's principal imports from Indonesia are mainly natural resources and resource-intensive goods like crude oil, natural gas, palm oil, paper, pulp and timber.

Dino said China would also assist Indonesia by providing a seismograph center to detect earthquakes and tsunamis.

This agreement follows the deadly tsunami that hit Nanggroe Aceh Darussalam on Dec. 26, killing about 220,000 people and causing trillions of rupiah in damage.

In return, Dino said, Susilo offered China the opportunity to develop a commuter railway system in the Aceh capital Banda Aceh.

Agreements signed by RI and China:

1. Memorandum of Understanding on Research and Development in Defense Technology Cooperation between China's Commission of Science, Technology and Industry for National Defense and Indonesia's Office of the State Minister for Research and Technology.
2. Memorandum of Cooperation between China's Ministry of Civil Affairs and the Aceh and Nias Rehabilitation and Reconstruction Agency on reconstruction projects in tsunami-affected areas, funded by Chinese non-governmental donations.
3. Agreement of Grant Assistance in Relation to Economic and Technical Cooperation between the governments of China and Indonesia.
4. General Loan Agreement of $100 million of Preferential Buyer's Credit from China to Indonesia.
5. Arrangement between China and Indonesia concerning Chinese language instruction.

 

 

 

INDOCEMENT POSTS RP307 B IN PROFIT

Jakarta, July 29 (ANTARA) - Publicly listed cement industry PT Indoecment Tunggal Perkasa said on Friday it posted a net profit of Rp307.62 billion in the first half of 2005 after suffering a loss of Rp117.29 billion in the same period last year.

Net income rose to Rp2.53 trillion from Rp2.03 trillion, causing gross profit to jump to Rp912.48 billion from Rp658.65 billion, according to the company`s midyearly financial statement, a copy of which was made available to ANTARA on Friday.

Net other expenses, which caused the company to suffer loss in the first half of last year plunged to Rp102.91 billion from Rp513.36 billion.

Consequently, profit before tax in the first six months of 2005 rose to Rp452.54 billion compared to a loss before tax of Rp150.27 billion in the same period last year.

 

 

 

 

 

 

 

UNINDO TO FACILITATE MALUKU INDUSTRIAL CENTER

Ambon, Maluku, July 29 (ANTARA) - The United Nations Industrial Organization (UNIDO) is to facilitate the establishment of an industrial center in Maluku which is scheduled to be officiated next September, Maluku Regional Development Board spokesperson Senda Titaley said here on Friday.

She mentioned further that a team from UNIDO was surveying a possible expansion of a medium-scale industry and a small-scale industry whose produces can be exported.

A computer technology, according to Titaley, would also be developed in the province and that, UNINDO has channeled US$65,000 to be spent this year and another US$1million for next year.

Titaley said UNINDO`s decision to facilitate the center was the realization of a visit by Maluku Governor Karel Albert Ralahalu to Austria in October last year.

"In Austria, the governor met with UNINDO official to sound out a cooperation with the organization to facilitate the opening of the industrial center," Titaley noted.

She added that the development of industrial center in Maluku was a strategic measure to meet the demand of the local people in the aftermath of sectarian clash that broke out on January 19, 1999.

 

 

 

 

 

GUDANG GARAM POSTS 10.85% RISE IN NET PROFIT

Jakarta, July 29 (ANTARA) - PT Gudang Garam, Indonesia`s largest cigarette maker, in the first half of 2005 posted Rp1.070 trillion in net profit, up by 10.85 percent from the same period last year.

Sales rose to Rp12.31 trillion from Rp11.94 trillion, causing gross profit to increase to Rp2.70 trillion from Rp2.40 trillion, according to the company`s midyearly financial statement, a copy of which was made available to ANTARA on Friday.

Current liabilities rose to Rp8.02 trillion as of June 30, 2005 compared to the same period last year when the figure was Rp6.553 trillion.

Over the same period current assets increased to Rp13.37 trillion from Rp11.78 trillion.

Equities rose to Rp12.29 trillion from Rp11.35 trillion, while total assets increased to Rp20.78 trillion from Rp18.27 trillion.

 

 

 

 

 

PRESIDENT INVITES CHINESE BIZMEN TO INVEST IN RI

Beijing, July 29 (ANTARA) - President Susilo Bambang Yudhoyono has called on Chinese businessmen not to wait too long before investing in Indonesia as the country is currently raising US$140 billion in funds to develop its infrastructure.

"I hope Chinese businessmen will not waste time. It is like proposing a beautiful girl, one must be quick before she says yes to another suitor," the President said.

He was speaking at a business forum organized by the China Council for International Trade Promotion (CCFIT) and the Indonesian Chamber of Commerce and Industry (Kadin) here Friday.

Yudhoyono said Indonesia was seeking US$140 billion in investment for development of its infrastructure including toll roads, power plants, oil and gas exploration, telecommunication, sanitary and water facilities, seaports and airports.

Of the overall amount , 60 percent was to come from the private sectors.

On the occasion, the President forwarded eights new positive things about conditions in Indonesia.

The points were firmer political stability, economic stability over the past three years, progress in multicultural conditions, improved investment climate, law enforcement, security, improved international confident in Indonesia and improvements in the manpower sector.

The President said Indonesia and China could play a significant role in the efforts to materialize the Asian Century based on development for the common welfare.

During his meeting with the Chinese President and Prime Minister, both governments had agreed to encourage two-way trade so that it could reach a value of US$30 billion by 2010.

"I believe that we can reach the target," the President said.

On the occasion, the two governments signed a few memorandums of understanding among others on development of a double-track railway in South Sumatra, development of a coal mine in Bukit Asam, construction of an oil refinery in Tuban, East Java, construction of a double track railway linking Cirebon in West Java with Kroya in Central Java, and opening of oil-palm plantations in East Kalimantan near Indonesia`s border with Malaysia.

 

 

 

 

RI’s shrimp export expected to increase 24 pct in 2005

Surabaya, July 28 (ANTARA) – Indonesia’s fresh shrimp production in 2005 is expected to reach 300,000 tons or 24 percent higher than in the preceding year, Marine and Fisheries Minister Fredy Numberi said.

"We are optimistic that the various programs the government has sponsored to boost shrimp production will bear fruit," the minister said in remarks at a meeting of the Shrimp Club Indonesia here Thursday.

He said the competitiveness of a country`s shrimp production in the future will be determined by the ability to develop hatcheries that are environment-friendly and require little water and space.

The Marine and Fisheries Ministry, he said, was continuously making efforts to intensify the productivity of fish ponds, revitalize neglected-fish ponds and encourage fish farmers to be more active in cultivating shrimp which has bright marketing prospects.

He said Indonesia was facing some obstacles in its efforts to develop shrimp hatcheries, particularly the declining quality of fish ponds which was affecting shrimp products.

In 2004, Indonesia exported as much as 139,000 tons of shrimp, while during January to May 2005, the country`s shrimp export volume was recorded at 23.600 tons.

He expressed hope Indonesia`s shrimp exports would continue to increase in the future. "Indonesia can earn significantly from its shrimp exports as the commodity is in great demand abroad," he added.

 

 

 

 

Consumer’s index shows improving RI economy

Jakarta, July 29 (ANTARA) – Indonesian consumers are convinced that Indonesia`s economy will improve in the coming six months, according to Bank Indonesia (BI)`s website here on Friday.

BI Consumers` survey in June indicated that the Consumers` Confidence Index (IKK) rose by 4.1 points from 97.6 last February to 101.7 points, meaning that the consumers confidence has recovered to the optimistic level, namely over 100 points, after being in a state of pessimistic since February.

The rise in the IKK index also reflected the rise of its Economic Condition Index (IKE) from 84.3 points to 87.2 points and its Consumers Expectancy Index (IEK) from 110.9 points to 116.2 points.

According to the BI website, the improvement in the IKK index was boosted by the confidence that their income would increase thanks to the expected increase in their business turnout and promising job-opportunities in the face of the increasing number of government and private investment projects.

On prices, most consumers (74.6 pct) surveyed expected that there would be price increases (inflation) in the next six months.

 

 

 

KOREAN INVESTOR TO DEVELOP PORT OF BAAI LAND

Bengkulu, July 28 (ANTARA) - A South Korean investor is interested in developing the port of Baai island, including dredging to enable large ships to moor at the port`s quays.

"The Korean investor is set to sign a memorandum of understanding for a cooperation with the state port operator PT Pelindo II," senior official of the local administration Imron Rosyadi said here Wednesday.

He said that the investor, Cheon Man Kim of PT Soong Doo, had sent a confirmation to visit the province for details of the project.

"An estimated 1,500 metric tons of silt enter the port`s basin each day. This silting process has caused problems in cargo handling operations at the port, particularly in coal shipments," he said.

He admitted that the silting up of the port`s waters has prompted the shipment of plantation and manufactured poructs through neighbouring ports, such as Padang`s Teluk Bayur (West Sumatera), Boom Baru (Palembang) and Panjang (Lampung).

 

 

 

 

 

 

RI, China to increase trade to US$ 30 billion by 2010

Beijing, July 28 (ANTARA) - Indonesia and China have agreed to increase their trade to US$30 billion by 2010, up from US$20 billion they have earlier planned to reach in 2008.

"The heads of state of the two countries agreed to increase trade between the two countries to US$30 billion by 2010," Indonesian presidential spokesman Dino Pati Djalal said after a meeting between the Indonesian delegation led by President Yudhoyono and its Chinese counterpart led by President Hu Jintao here on Thursday.

Dino did not explain why the original US$20 billion target set on the basis of an agreeement between the two countries signed by President Yudhoyono and his Chinese counterpart Hu Jintao in Jakarta in April this year was changed.

In a meeting with members of the Indonesian community in Beijing on Wednesday President Yudhoyono said his visit to China was aimed among other things at the realization of the trade agreement.

Dino said the meeting between the Indonesian and Chinese delegations was constructive and proceeded in a warm atmosphere, and both sides wished for a more concrete realization of the cooperation.

He said the projects ready to be built under the cooperation include an oil refinery in East Java, a double-track railway line between Cirebon in West Java and Kroya in Central Java, a power generating plant and a dam in Jatigede, West Java.

The two delegations signed five of eight memoranda of understanding after the meeting.

The MoUs cover among other things cooperation in defense technology development, and in Aceh and Nias rehabilitation.

 

 

 

 

 

 

 

GOVT WELCOMES RELOCATION OF CHINESE INDUSTRIES TO RI

Jakarta, July 28 (ANTARA) - Minister of Industry Andung A Nitimihardja hailed the Chinese businessmen`s plan to relocate their industries to Indonesia, which will increase industrial growth and create new jobs.

"Of course it`s positive for us especially at a time when Indonesia is in need for more investment to boost its economy," Andung told reporters on the sidelines of a commemoration of the 10th anniversary of South Korea`s electronic company PT LGEDI in Cikarang, West Java.

He further said that Indonesia would benefit from the relocation, because its raw materials would most likely be absorped, and eventually the relocated industries would also increase the country`s foreign exchange revenues.

Chairman of the Association of Indonesian Footwear Businessmen (Aprisindo) Harijanto meanwhile said that Indonesia should start exporting shoes to the U.S. and the European Union.

"China is currently dominating the shoe markets in the U.S. and EU. The current conflict in trade between the US and the EU provides a good opportunity to us to enter the market in the two parts of the world, for which we also have asked for government assistance," Harijanto added.

Indonesia`s exports have been increasing following a decline for some time.

In 2001, Indonesia`s footwear exports reached US$1.50 billion, but declined to US$ 1.15 billion in 2002. Gradually the exports increased to US$1.18 billion in 2003, and in 2004 reached US$ 1.32 billion. This year the footwear exports had been predicted to reach US$ 1.69 billion.

 

 

 

 

 

 

OIC TO DONATE RP12 TRILLION TO ACEH

Banda Aceh, July 27 (ANTARA) - The Organization of Islamic Conference (OIC) has said it will assist the implementation of the rehabilitation and reconstruction programs in Nangroe Aceh Darussalam (NAD) in the aftermath of last year`s strong earthquake and subsequent tsunamis by providing a donation worth Rp12 trillion, a senior local official said.

"OIC has said it will also help orphans who survived in the disaster," Azwar Abubakar, the NAD acting governor, said here on Wednesday.

He made the remarks marking the start of a selection of dedicated and promising teachers.

He further said that the assistance would cover their cost of living and education for 15 years.

Azwar, menawhile, said that he felt touched to see the teachers` strong spirit in facing various problems resulting from the still ongoing conflict, earthquake and tsunamis causing total devastation to the province and more than 200,000 people losing their lives.

"I can see they still have a high spirit to carry out their tasks to educate the young generation," he added.

 

 

 

RI, China to focus on investment

Jakarta, July 26 (ANTARA) –Indonesia and China would focus on efforts to enhance their bilateral cooperation in investment, which is not as intensive as cooperation in trade, during President Susilo Bambang Yudhoyono`s visit to the PRC on July 27 to 31.

"We will try to enhance our bilateral cooperation in investment because only our cooperation in trade has been developed," Trade Minister Mari Pangestu said here on Tuesday.

According to Mari, talks on the development of bilateral economic and trade relations would be the main agenda in President Yudhoyono`s meeting with his Chinese counterpart.

After China invested their money and started production in Indonesia, their products could be exported to China, the minister added.

"This means we will not spend any foreign exchange. And we will also tell them to use our natural resources," Mari said.

During the visit, the leaders of both governments would also discuss a Chinese government offer to provide a soft loan of US$200 million payable in 15 years at a three percent interest per year.

Another agenda in the talks would be issues of illegal logging.

However, Mari refused to elaborate on whether Indonesia would urge China not to buy illegal timber from Indonesia.

"A technical meeting of a joint commission will discuss issues on illegal logging," Mari said.

 

 

 

 

 

 

 

 

 

 

Hungarian companies to invest $4 billion in South Sumatra

South Sumatra's economy is to receive a massive boost following the signing of an agreement worth about US$4 billion on Monday, between the representatives of Hungarian investors and the province's administration.

Visiting Hungarian Prime Minister Ferenc Gyurcsany and economic and transportation minister Janos Koka, who witnessed the signing of the memorandum of understanding (MOU), said the deal would focus more on the development and construction of infrastructure.

"This morning, an MOU with the South Sumatra administration and representatives of Hungarian businesses was signed to develop power, coal mining, port and rail projects," Koka said at the State Palace.

South Sumatra Governor Syahrial Oesman said the projects would include the exploration of a coal mine in Banyuasin regency, the construction of a railroad from the mine to Bagan Siapi-Api port in Riau province and the construction of a power plant to support the mine.

"The $4 billion investment deal is a breakthrough for us. Usually, the central government deals with every major economic activity in our province. But now, we are managing to do it alone," said Syahrial after accompanying President Susilo Bambang Yudhoyono to meet Prime Minister Gyurcsany at the palace.

Syahrial said the coal mining site in Banyuasin was estimated to have a proven reserve of about six billion tons of coal, while its neighboring site in Muara Enim regency had about 13 billion tons.

He said the coal-fired power plant would have a capacity of about 4,000 megawatt (MG), which was significant given the electricity problem in the province.

The Hungarian government has also pledged to provide about $25 million in soft loans for the natural resource-rich South Sumatra to help develop a highway that would link several business areas in the province with Bagan Siapi-Api port.

Meanwhile, during a joint press conference with the President, Prime Minister Gyurcsany offered the government several of its information technology (IT) products and services, as well as a selection of its military equipment.

"Export of Hungarian products to Indonesia is 10 times smaller than imports from Indonesia. We would be very delighted if Indonesia explored several of our IT products as well as our military equipment industry," said Gyurcsany.

According to Indonesian Minister of Trade Mari Elka Pangestu, Indonesia's direct export to Hungary stands at about $96 million annually, while import from the country is less than $10 million.

Mari said that about 50 percent of Indonesian exports to Hungary was in the form of electronic goods, and the remainder was in the form of agriculture produce and food products.

Hungary, which has a population of about 10 million people, has also appealed to the Indonesian government, as well as its business community, to import wheat from Hungary.

Indonesia imports some five million tons of wheat annually, most of which is Australian.

Mari, however, said that importing wheat from Hungary would require greater effort due to the high transportation costs compared to importing it from neighboring countries.

"I think the products with the most potential for us are processing machinery for our forestry industry and IT products. Hungary excels in those sectors," Mari said.

Meanwhile, during a bilateral meeting, the two countries agreed to sign an agreement on economic cooperation and an MOU on the tourism sector.

 

 

 

 

 

 

Hungary offers millions of dollars for investment in Indonesia

 Jakarta, July 25 (ANTARA) – Hungarian Prime Minister Ferenc Gyurcsani has said his country is offering hundreds of millions of dollars for capital investment in the energy and informatics sectors in Indonesia.

"Hungary is offering a soft loan," the Hungarian prime minister said at a joint press conference with President Susilo Bambang Yudhyono here on Monday.

Earlier, the two heads of state held a bilateral meeting and witnessed the signing of a memorandum of understanding on economic and tourism cooperation.

Indonesian chief Economic Minister Aburizal Bakrie said the loans offered by Hungary could be used to build electricity generators and railways.

"The nature of the loans is business-to-business so that it would be channeled to businesses not to the government," the minister said adding that they basically would make investment in Indonesia.

Asked on the amount of the loans, Bakrie mentioned US$700 million, but he did not make clear whether it had included the whole loans or only the one that would be used for electricity and railways development.

He said the loans were still in the form of offer which still had to be realized.

On the occasion, the Hungarian prime minister also offered cooperation in the development of a joint venture to produce buses, but according to Bakrie, the offer was also business-to-business.

 

 

 

 

 

PT Garuda Indonesia grabs Indonesia Golden brand award

Jakarta, July 24 (ANTARA) – State-owned airline company PT Garuda Indonesia has grabbed two awards of the Indonesian Best Brand Award (IBBA) 2005 based on the cosumers` choice, a press release said.

In its press release made available to ANTARA here on Sunday, Pujobroto, spokesman of the PT Garuda Indonesia, said the IBBA was held by MARS, a research and marketing firm, which collaborated with Swa magazine.

The two awards are the Most Valuable Brand in Airline Service 2005, and the Indonesian Golden Brand 2005 because the national flag-carrier has won the Most Valuable Brand in Airline Service for three consecutive years (2003-2005).

MARS has conducted research in five main cities: Jakarta, Surabaya, Bandung, Semarang and Medan, elected PT Garuda Indonesia setting aside some other airline firms.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pertamina to build Tuban refinery with Sinopec

State oil and gas company PT Pertamina will work with the China Petroleum & Chemical Corp. to build the country's tenth refinery in Tuban, East Java, Minister of Energy and Mineral Resources Purnomo Yusgiantoro says.

Pertamina and Sinopec, as the Chinese company is known, will sign a memorandum of understanding (MOU) during President Susilo Bambang Yudhoyono's visit to China later this week, Purnomo said on Sunday.

Pertamina's president director Widya Purnama said that construction was expected to start as soon as possible, depending on further discussions between the two companies.

"We hope to start this year, or next year at the latest," said Widya. He declined to give a date for the coming onstream of the refinery or the investment involved in the capital-intensive endeavor.

The refinery will have a processing capacity of between 150,000 barrels of crude oil per day (bpd) and 200,000 bpd, said Widya.

The President is slated to visit China for three days, starting on Wednesday. Purnomo said that the presidential entourage would visit coal-fired power plants located at the mine heads, which Indonesia is also planning on building.

In order to prevent fuel shortages in the future, Susilo has ordered the development of a refinery in Tuban, which will process oil from the Cepu block, located between East Java and Central Java, and the Jeruk field, south of Madura island.

Cepu, which will be operated by a joint venture between Pertamina and U.S. energy giant ExxonMobil, is expected to produce 170,000 bpd at its peak, while it is estimated that Jeruk will produce at least 50,000 bpd.

At present, Indonesia has nine large and small refineries with a total processing capacity close to 1 million bpd.

With domestic fuel consumption rising by some 7 percent per year, the government, through Pertamina, has to import some 300,000 barrels of crude oil and 400,000 barrels of fuel products per day to secure supply.

Indonesia suffered a major fuel crisis a month back, the effects of which are still being felt, after the country's fuel stocks dropped to less than 18-days supply, with premium gasoline down to only 12.7-days supply, compared to the ideal buffer stock of 22-days supply. The crisis was due to cash-flow problems at Pertamina and the government's difficulties in covering pay fuel subsidies amid soaring global oil prices.

The crisis prompted the current energy-conservation drive, which may see higher luxury taxes imposed on large-engined cars, as well as additional taxes on people owning more than one car, as a means of reducing fuel demand in the transportation sector.

 

 

 

 

 

Bird flu vaccine sufficient: Ministry

 

The supply of bird flu vaccines for poultry in the country is sufficient to help prevent a further spread of the highly pathogenic virus amid the reemergence of new cases, an official said.

Director General for Animal Husbandry at the Ministry of Agriculture Mathur Riady told The Jakarta Post on Friday that the Ministry had distributed around 126 million doses of bird flu vaccine to animal husbandry offices across the country, especially in areas with the worst infection case.

"We also have around 52 million doses of vaccines," Mathur said. He added that those vaccines were left over from last year's vaccination program, which was launched following the first bird flu outbreak late in 2003, killing millions of chickens in the country.

Although the vaccine was considered enough for the chicken population, estimated at around 4.7 million last year, Mathur said vaccinations would be combined with a selective cull "since it will be very expensive and ineffective if we stick to vaccinations only."

"We recorded that bird flu cases dropped in December last year but suddenly the number increased rapidly this year," he added.

He blamed traditional farmers who did not use standard preventive measures at their farms, which caused the virus to spread rapidly from one place to another place.

On Wednesday, the government ordered a cull of healthy birds within a radius of three kilometers from any infected area, and set aside emergency funds to compensate farmers.

Mathur said that the ministry would use its emergency funds to finance the vaccination program and provide compensation for farmers whose poultry had to be slaughtered.

"Our emergency funds currently stand at Rp 130 billion (US$13.6 million) and we're planning to use half for combating the disease," Mathur said. The Minister was seeking approval from the House of Representatives, he added.

Concerns over the impact of bird flu disease on humans reemerged after the government confirmed this week the first human fatalities in Indonesia, killing a man and his two young children. But it remains unclear how they contracted the deadly H5N1 virus, which can only be transmitted to humans via sick birds.

Separately, Minister of Agriculture Anton Apriyanto said that the government would ban swine farms located near infected poultry farms amid fears that the virus could also be transmitted from sick birds to pigs, a case which could cause the virus to mutate into a more deadlier form, possibly one that could be easily transmitted between humans.

 

 

 

 

Indonesia to host wold development seminar

 

Indonesia will host the Asia-Pacific ministerial meeting on the United Nations' Millennium Development Goals (MDGs) at the Jakarta Convention Center from Aug. 3 to Aug. 5.

 

Sudjadnan Parnohadiningrat, foreign ministry's secretary general, said that participants of the meeting, which is the first to be held in conjunction with the Millennium project, would discuss strategies for the region to accomplish the MDGs.

"The strategies will be endorsed in a declaration, to be called Jakarta Declaration. This declaration will be brought for discussion in the high-level plenary meeting, at the 60th UN General Assembly Summit in September," he told a joint media briefing with Erna Witoelar, the UN Special Ambassador for the Millennium Development Goals in the Asia-Pacific, here on Friday.

Indonesia, he said, has proposed an Asia-Pacific cooperation strategy called "Regional Compact" that involves the wealthy nations of the region such as Japan.

The plenary meeting at the UN Summit will review the progress of the MDGs, declared in the Millennium Summit in 2000. The MDGs targets poverty eradication and living standards improvement, all to be completed by 2015.

Erna expressed hope that the Asia-Pacific countries' initiative would encourage UN members to put more effort into development issues.

"At present, the world's attention is concentrated on Africa. But the Asia-Pacific has more important issues to resolve, as the poor people in this region outnumber those in Africa," said the former minister of resettlement and regional infrastructure.

She said that 741 million (57 percent) of 1.3 billion poor people around the world resided in Asia-Pacific region, which added to the complexity of the MDGs.

Earlier this month, the Group of Eight wealthy nations agreed to wipe out US$41 billion of debt in 18 impoverished countries in Africa, and to increase the aid twofold to $50 billion a year by 2010.

Erna said that the Asia-Pacific should work out a more "elegant" way to lift themselves out of poverty. While the Indonesian government would not beg for debt relief because it would disadvantage the country, it should find other ways to finance its development aside from debt, she said.

"They could ask for more trade access or cooperation in the real issues of the region, such as health or environment."

"And though the amount of Overseas Development Assistance (ODA) from developed countries will increase according to their pledges to the Millennium declaration, I think Indonesia would not need much of it. We have enough money to pay for our children's school fees, to prevent mothers from dying after giving birth and poverty alleviation. At the end of the day, it is corruption that has hindered this country in achieving the Millennium Development Goals," she said.

Ministers and high ranking officials from 53 countries in the Asia-Pacific region, as well as representatives of UN special agencies (such as UNDP, UN-DESA, UN-ESCAP and UNCTAD), vice presidents of the Asian Development Bank and the World Bank, had confirmed their participation in the meeting, Sudjadnan said.

Prof. Jeffrey D. Sachs, UN Millennium Project's director and special advisor to UN Secretary-General Kofi Annan on MDGs, will speak at the Jakarta's meeting. Other speakers will be Indonesia's Minister of Trade Marie Elka Pangestu, Coordinating Minister for People's Welfare Alwi Shihab, Minister of National Development Planning and chairperson of the National Planning Agency Sri Mulyani Indrawati, Erna Witoelar President Susilo Bambang Yudhoyono is scheduled to open the meeting.

There will be an exhibition on poverty eradication and other MDGs achievements on the sidelines of the meeting at the Jakarta Convention Center.

 

 

 

 

Govt offers 'Bonded Zone Plus'

 

The status of the Batam Industrial Bonded zone, Bintan Industrial Estate and Karimun Industrial Cooperation zone have been upgraded to "Bonded Zone Plus" to give investors more legal certainty, top officials say.

Minister of Finance Jusuf Anwar and Minister of Trade Mari E. Pangestu introduced the governmental regulation and three ministerial decrees through the July Package of deregulation measures here on Friday. The regulations would serve as legal basis for the status upgrade, they said.

The package is expected to address four main legal and investment issues -- the status of assets in the zones, the status of land and spatial plans, the workings of the Batam Industrial Development Agency (BIDA) and the Batam municipality administration, Mari said.

"The package is based on input from various stakeholders. It is expected to provide incentives for investors, including facilitating an easier and faster flow of goods," she said.

Under the package, the government now allows manufacturers in the three areas to import used capital goods for industrial purposes without official permits and surveyor inspections, as long as they were an inseparable part of relocating businesses to the zones.

Several permits and taxes in the zones have also been scrapped under the package.

The policy is also expected to improve export-oriented business performance and sustainability; reduce costs, simplify procedures and maintain consistent policies; give clear distinctions and regulate industrial and residential zones; ensure fair taxation; and maintain an easy and fast flow of goods in the industrial zones.

It would also enable the government to simplify customs procedures by delegating the authorities of the finance ministry or its Directorate General of Customs to the heads of local Customs Service Office (KPBC).

Mari acknowledged that the package might not solve all the problems in zones, "but, at least it could address many problems that have been neglected for years."

The private sector, however, cautiously welcomed the package.

Head of the Indonesian Employers Association Riau Island chapter, Abidin, said although the policies were business-friendly, they were weaker than laws, which would give businesses more confidence.

"We greatly appreciate the July Package, but we still expect that Batam's status be strengthened in a law," he said.

Batamindo Industrial Zone general manager John Sulistiawan said that the package seemed to have returned Batam's status to Free Trade Zone; which was an extremely positive move.

"(However) we still have to see the implementation; will it be as good as the ministers have announced?" he said.

Batam Small and Medium Enterprises coordinator Dorlan Naibaho said the policies seemed to focus more on foreign investors than local SMEs, many of whom still depended on imported goods.

Batam is an attractive manufacturing and industrial location in Southeast Asia, hosting some 600 foreign companies and absorbing more than US$3 billion in foreign investment.

 

 

 

 

 

 

 

 

Bali’s handicraft export reach US$ 100 million

Denpasar, July 22 (ANTARA) – Bali`s handicraft exports increased by 42 pct to US$ 100 million in the January-May 2005 period from US$70.3 million in last year`s corresponding period.

The non-oil commodity exports from other provinces, however, had been declining, according to data quoted from the Bali industry and trade office here on Friday.

The data also showed that Bali`s textile exports in the same period this year had declined by 35 pct from US$ 102.5 million to US$66.7 million.

Meanwhile, the province`s vanilla and coffee exports in the same period this year reached US$400,000, a 78 percent drop from US$6.6 million last year.

Bali`s handicraft products which are popular in 50 countries include silver jewelry, wooden carvings, plated bamboo, musical instruments, paintings, ceramics and antique furniture.

 

 

 

 

 

 

 

EU ready to send monitors to Aceh

Jakarta, July 21 (ANTARA) - The European Union (EU)`s parliament is ready to send a monitoring team to Nanggroe Aceh Darussalam (NAD) as a follow up to the peace agreement reached by the Indonesian government and the separatist Free Aceh Movement (GAM), a spokesperson said here Thursday. 

The EU parliament would send a team of monitors with military background who would observe the implementation of the peace agreement in the field, Anna Maria Gomez, a member of a visiting EU parliamentary delegation, told the press after a meeting with Vice President Jusuf Kalla.

Government and GAM representatives on Sunday concluded their fifth round of talks in Helsinki, Finland with the initialing of a draft deal to end the decades-old armed conflict in NAD.

The peace deal among other things provides for the withdrawal of Indonesian government troop reinforcements from NAD and the surrender of GAM weapons.

Gomes said the meeting with Kalla did not go into the details of the monitoring mission but the EU would respond to any result of the Helsinki talks.

On July 28 Indonesian Foreign Minister Hassan Wirajuda is scheduled to hold talks with countries that will take part in the NAD monitoring team, namely Thailand, Singapore, Brunei Darussalam, Malaysia, the Philippines, and the European Union.

The meeting would formulate the tasks of the international monitoring team and the duration of its services in Aceh.

Meanwhile, Luisa Morgantini, the chairwoman of the EU parliamentary delegation, said the EU supported the peace deal because war would only sacrifice innocent people.

The deal, Luisa said, would be a chance for Indonesia to materialize reconstruction and reconciliation in the province.

Also present at the 45-minute meeting with Vice President Kalla were EU Ambassador Jean Breteche and deputy chief of the EU parliament`s Development Commission Max van den Berg.

On the occasion, the EU ambassador expressed support for the Indonesian government`s commitment to eradicate corruption and combat terrorism.

 

 

 

Indonesia still offering big chances to milk businesses

Jakarta, July 21 (ANTARA) – Indonesia is still offering a big chance to milk businesses as per capita milk consumption in the country is still low, namely seven litters per month, which is below the consumption levels in Malaysia and Thailand, an exectuive said here on Thursday.

The low milk consumption offered a good chance to milk businesses as Indonesia had a large number of population, said President Director of Royal Friesland Foods, James Gray.

He made the remarks during a function held to celebrate the change of `Frisian Flag Indonesia` name into `Royal Friesland Foods`.

The big market opportunities have encouraged the management of Royal Friesland Foods to continue expanding its business by diversifying its milk products from one to three brands, Gray said.

He said his company was committed to continuously develop itself following the title `Royal` granted by Dutch Princess Beatrix.

But he admitted that his company gained only a ten percent growth this year which was smaller compared with the growth it achieved in the previous year at 20 percent.

Gray said the slowing growth this year was due to the fact that the market was fluctuating, the rupiah continued to weaken against the US dollar and the fuel oil prices increased.

He said the Royal Friesland Foods produced this year new milk brands namely Omela and Fristi powdered milk, and other milk formulas.

 

 

 

 

 

President opens Asia-Europe Interfaith dialog

Nusa Dua, Bali, July 21 (ANTARA) - President Susilo Bambang Yudhoyono here Thursday opened a two-day Asia-Europe Interfaith Dialog at the Bali International Convention Center.

In his address on the occasion, the President expressed hope the dialog would serve as a bridge for people of different faiths to understand each other better and answer the many problems being faced by the international community.

"We should not forget that we are all God`s creation," he said.

He also suggested that the dialog focus on how to cultivate moderate attitudes among people of different faiths so that they would become the main power in daily life.

"The dialog should involve groups representing all faiths. Every voice including those from the so-called militant groups should be heard." he said.

The Indonesian contingent at the dialog consisted of representatives of all major religious groups in the country such as the largest Moslem organization Nahdlatul Ulama (NU), the second largest Moslem organization Muhammadiyah, the Indonesian Council of Ulemas (MUI), the Indonesian Communion of Churches (PGI), the Indonesian Hindu organization, the Indonesian Buddhist organization, and the Indonesian Conference on Religion and Peace.

British Parliamentary Secretary for Foreign Affairs Kim Howells was scheduled to attend the event which is being participated in by 26 countries from Asia and Europe.

Delegates from the Holy See, the United Nations, the United Nations for Educational, Scientific and Cultural Organization (UNESCO), the Arab League, the Organization of the Islamic Conference (OIC) and the ASEAN Secretariat were also presence as observers.

The dialog was organized by Indonesia and Britain in cooperation with Asia-Europe Meeting (ASEM) member countries like Denmark, Finland, Greece, Malaysia, the Netherlands, the Philippines, Singapore, Spain and Thailand.

The results of the dialog will be formulated in a "Bali Declaration for Building Interfaith Harmony."

 

 

 

 

 

Indonesia’s LNG exports contribute Rp 100 trillion in revenues

 Jakarta, July 20 (ANTARA) – Indonesia’s liquefied natural gas (LNG) last year contributed foreign exchange worth Rp100 trillion last year and it was expected this year the contribution will increase.

"Then, the LNG exports had given a large contribution to support our National State Budget," Energy and Mineral Resources Minister, Purnomo Yusgiantoro said here on Wednesday.

However, he said, he would also focus on the domestic gas consumption which amounts to 50 percent of the LNG production and the rest is for export.

Responding on an idea to stop LNG exports, he said up to now government not made any such decision.

Indonesia`s LNG has been exported mainly to Japan, South Korea and a number of other countries. Currently there is an agreement for LNG exports to Fujian, China.

On the other hand, domestic gas consumption continued to increase as oil prices also continued to increase on the world market.

 

 

 

 

 

 

Artha Graha, Sampoerna cooperate with Chinese investor in agrobusiness

Jakarta, July 18 (ANTARA)- Two Indonesian business groups, Artha Graha and Sampoerna, will establish cooperation with Guangdong Foreign Trade (GFT) Group Co.Ltd of Guangzhou, China, in investing three billion US dollars in Indonesia covering a period of three years.

Corporate Communications Head of Artha Graha Group, Heka Hartanto told journalists here on Monday that the consortium planned investment in various sectors, including agrobusiness, fishing, handicraft, furniture, mining, oil and gas, finance, and infrastructure.

He said, in the beginning the consortium would build an Indonesia-China Trade Center in Jakarta scheduled to operate in November 2005.

"The trade center is open to local producers to sell their products to China and other countries," he said.

Heka said the consortium involving foreign investors will make joint investments in various sectors, specially in building a China Industrial Estate in West Java province.

"In the China Industrial Estate, GFT Group will also bring leading Chinese companies to invest in Indonesia," he said.

 

 

 

 

 

 

 

 

 

Govt expects $193m from forestry fees, royalties

With the country's timber production recently showing signs of increasing, the government believes it can increase next year's revenues in royalties and fees from the timber industry to Rp 1.9 trillion (US$193.39 million), the forestry minister has said.

Speaking during a hearing with the House of Representatives' Commission IV on agriculture, fisheries and forestry on Tuesday, Minister of Forestry Malam Sambat Kaban said that the expected revenues would consist of Rp 1.04 trillion in taxes for reforestation, Rp 868.5 billion in timber royalties and Rp 6.6 billion in logging permit fees.

He said the revenue forecasts were based on the assumption that the country's timber production would reach eight million cubic meters next year.

"The figure is a 46 percent increase over this year's target of 5.4 million cubic meters," he was quoted as saying by Antara.

Kaban explained that the rise in timber production would mainly be boosted by an increase in demand arising from reconstruction work in tsunami-stricken Nanggroe Aceh Darussalam.

The government also expects state timber firm Perhutani to increase its timber production to 26.6 million cubic meters and its non-timber production to 422,500 tons.

"This is the result of the government's 'soft landing' logging policy, which helps sustain forests and make optimal use of other forestry products besides timber," he said.

Kaban said that revenues from logging permit fees were expected to increase as a result of the ministry's plans to auction off logging permits for some 414,000 hectares of forest land throughout the country.

Apart from the royalties and fees, the government is expecting the timber industry to contribute some $9 billion in foreign exchange earnings this year compared to an estimated $7.8 billion last year.

During the hearing, Kaban also said that his ministry would seek a budget allocation of Rp 1.6 trillion to help finance its efforts to develop and improve the country's timber industry.

Indonesia is the world's third largest forestry country, but is struggling to sustain its forests, which are being decimated by illegal logging.

Some 2.6 million hectares of land are deforested every year, and the country's remaining 40 million hectares of primary/natural forest are under threat.

 

 

 

 

 

 

RI, Japan focus on cooperation

Japan and Indonesia are focusing their series of negotiations on setting up an Economic Partnership Agreement (EPA) to strengthen cooperation in trade, investment and intellectual property rights, the Minister of Trade says.

Mari E. Pangestu said on Monday the two countries had agreed in their first talks ending on Friday to form an EPA with five "expert groups", which would negotiate sector agreements.

"Friday's talk marks the kick-off of the EPA negotiation," Mari said.

The Expert Group on Trade in Goods will negotiate issues of market access, customs, rules of origin, competition and standard and conformance.

The Expert Group on Trade in Services, Investment and Government Procurement will explore mostly in areas of regulations needed to enhance investment, while the Expert Group on the Movement of Citizens will cover workers moving between the two countries.

The group on intellectual property rights, meanwhile, is to focus on information exchange and cooperation, while the Expert Group on Cooperation, will explore efforts in areas of capacity building for the Indonesian private sector in penetrating Japanese and international markets through the improvement of quality, standards and technical requirements.

Chief negotiator and U.S. Ambassador Soemadi DM Brotodiningrat said Indonesia had proposed forming a sixth group focusing solely on investment.

"But Japan has yet to show us its position (on forming a new group)," Soemadi, a former ambassador to Japan, said.

Earlier, the ministry said that Indonesia needed to focus more on capacity-building cooperation because lifting the tariff barriers would not automatically lead to a wider market access for local products, which would still face non-tariff barriers.

Indonesian goods might not be able to meet Japanese quality standards and technical requirements or be unsuited to Japanese tastes, the ministry warned.

The first round of talks came after President Susilo Bambang Yudhoyono and Japanese Prime Minister Junichiro Koizumi signed an agreement to launch EPA negotiations during Susilo's visit to Tokyo on June 2.

In the meeting, Koizumi and Susilo agreed the two countries would conclude the EPA talks "within a reasonable period of time".

According to Soemadi, the two countries were yet settle on a time frame for how long the negotiations would take place.

However, he said that Japan needed at least two years to conclude FTA talks with Thailand, the Philippines and Malaysia.

Because Japan was experienced in FTA talks, Soemadi hoped that EPA negotiations could be finished in less than two years.

The two delegations have agreed to hold negotiations at least every two months after their October meeting in Tokyo.

 

 

 

 

 

Govt plans world's largest oil palm plantations

The government is working on the development of the world's largest integrated oil palm plantation, including processing facilities, which would run along the 850 kilometer-long border with Malaysia in Kalimantan.

The government expects more than 500,000 jobs will be created through the project and oil palm production will increase by some 2.7 million bunches annually, Minister of Agriculture Anton Apriyantono told The Jakarta Post recently.

The establishment of the plantation -- which will start producing by 2010 -- and its supporting industry is estimated to cost approximately Rp 5.5 trillion (some US$567 million) over the next five years.

"The project is aimed at strengthening our border against our neighbor Malaysia, as well as reducing the prosperity gap between our people living along the border and those in Malaysia," said Anton.

Anton said his ministry was tasked with coordinating the development of the plantation, including attracting local and foreign investors and providing seedlings and farming equipment.

Foreign investors interested in the business are required to form a joint venture with local investors, he added.

Due in part to a lack of development, the border between Indonesia and Malaysia in Kalimantan has become a haven for illegal loggers, many backed up by law enforcers, in smuggling out logs from protected forests.

Anton said the government would initially focus on developing oil palm plantations in several regencies including Sambas, Bengkayang, Sintang and Sanggau in East Kalimantan, and in Kapuas in Central Kalimantan.

"The end-product can be exported overseas or sold on the local market for developing biodiesel fuel, which is much needed to help reduce the domestic consumption of subsidized premium gasoline. Therefore, the plantation has huge prospects," said Anton.

Aside from oil palm, several areas near the border will be cultivated as rubber plantations with an estimated output of some 135,000 tons of dried rubber annually, he said.

The development of the plantations will involve the Ministry of Manpower and Transmigration in providing workers, the Ministry of Public Works in building roads and opening up access, and the Ministry of Forestry in land acquisition.

Ministry of Manpower and Transmigration Fahmi Idris told The Jakarta Post his ministry would intensify transmigration programs for recruiting unemployed people in densely populated provinces, such as those in Java, to be relocated into the planned plantation areas.

"We are currently working with the Ministry of Agriculture on the mechanism to relocate unemployed people or farmers from densely populated provinces to border areas under the transmigration program," said Fahmi.

Indonesia is the world's second largest exporter after Malaysia of oil palm -- a raw material for, among other things, cooking oil, soap and detergent.

Output from the two countries makes up about 85 percent of yearly global oil palm production.

According to data from the Central Statistics Agency (BPS), the country produced about 12 million tons of crude oil palm last year, with about 8.66 million tons exported to China, India, Pakistan, Bangladesh and the Netherlands.

 

 

 

 

Riau Islands nets $2b Chinese investment

Efforts by the Riau Islands to attract foreign direct investment are off to a good start, with the sealing on Sunday of a US$2 billion investment commitment in the tourism sector between a group of entrepreneurs from the province and their counterparts from China.

The group also signed a memorandum of understanding with the Maldivian Chamber of Commerce and Industry -- for a similar cooperation in the tourism sector -- and established the Riau Islands Development Acceleration Agency, with the local administration to follow up the implementation of the FDI agreements.

Head of the Riau Islands Development Acceleration Agency Rufinus I. Susanto said the $2 billion investment commitment from China would be realized in the form of developing several of the province's islands into private tourist resorts.

"Many investors from China have expressed their interest in building private tourist resorts on the Riau Islands," he said. "And not just resorts in a single area, but turning the whole island into an integrated, complete tourist resort."

For that purpose, the agency will make an inventory of all the islands and select those that have potential as resort islands.

"That, and the construction of access roads on the selected islands, will be the priority of the investment commitment in the first year," he said, adding the development of the islands would boost the province's overall economic condition and improve its infrastructure.

The commitment itself will be realized within a five-year time frame, and will be carried out through PT Naga Putra Sakti, a company established by the consortium of the province's local entrepreneurs and Chinese investors.

Rufinus explained the Chinese investors were also interested in building airstrips on the planned resort islands for direct flights to and from China, as well as the construction of interconnecting bridges between certain resort islands.

"They want these -- especially the direct flight airstrips -- for easier access to the resort islands, without having to go through the hassle of immigration procedures," he said.

"Of course there is a possibility that this might create problems regarding the country's immigration regulations, but the agency is ready to work this out with the local administration."

Meanwhile, commenting on the newly signed MOU between Riau Islands province and the Maldives, president of the Maldivian Chamber of Commerce and Industry Mohamed Salih was optimistic that it would be beneficial for both parties.

"The Riau Islands will be a good investment place for Maldivian tourist resort businesses, while the Riau Islands can learn from the Maldives' experience in managing its island tourism sector," he said.

The Maldives are renowned for having among the finest beach resorts in the Indian Ocean region.

The development of resort islands will be another investment landmark for the newly established province of Riau Islands, following Batam island, already renowned for the major industrial investments in its free-trade zones.

 

 

 

 

 

Indonesia to host international tea conference next week

Denpasar, July 16 (ANTARA) – Indonesia will host the 16th International Tea Business Conference (ITBC) and an Intergovernmental Group on Tea (IGG on Tea) meeting in Nusa Dua, Bali, on July 18 to 22, 2005 to discuss world tea issues and developments.

Insyaf Malik, chairman of the Indonesian Tea Association (ATI) acting as chairman of the ITBC organizing committee, said 200 delegates from 30 countries -- members of FAO (Food and Agriculture Organization) -- would attend the conference.

He said the conference is a forum for the world`s tea producers, traders and packers to exchange information on current tea issues and developments and to discuss tariff and non-tariff barriers, maximum residual level and competition analysis.

"It is a suitable forum for tea association members, including Indonesia, to promote their tea business and investment in their respective countries," Insyaf said.

Meawhile, the IGG on Tea conference to be held after the ITBC meeting, will discuss FAO members` views on the tea industry as a promising industry to meet the organization regulations.

The conference which is held once every two years will also discuss current issues of the tea industry, including environment, health, lifestyle and government regulations.

Indonesia is the world`s fifth largest producer of tea.

 

 

 

 

RI's recovery boosts ASEAN's attractiveness

Being the largest ASEAN member country, Indonesia's economic recovery would boost the attractiveness of the region as a trade partner and an investment destination, experts said here on Friday.

Manu Bhaskaran, a partner at the Centennial Group Inc. of Singapore, noted that Indonesia's on-track recovery was one factor bringing back investment into Southeast Asia. Others, he said, were the beginning of a new investment cycle and improving competitiveness across the region.

Speaking at the 2005 Euro Conference here, Bhaskaran noted that despite its lingering problems, Indonesia under President Susilo Bambang Yudhoyono had already had more successes than failures.

He said Susilo had given the market a clear direction on where his administration was heading. Combined with a strong anticorruption drive, this had increased business confidence in Indonesia, he said.

The President had also been successful in settling several important overdue problems, including the Cepu oil block dispute with U.S. energy giant ExxonMobil, and had moved to cut oil subsidies, although they remained high, Bhaskaran said.

Corporations were also responding positively to the government's moves to enforce good governance in the public and private sectors, he said. Banks had stepped up lending to small and medium enterprises, and international firms had increased their investments in the region as confidence among foreign investors and donors improved.

Bhaskaran said the country was now on track toward high economic growth of more than 6 percent, a figure that could be reached next year. This would help resolve Indonesia's long-standing problem of high unemployment, he said.

Indonesia's recovery was in line with the robustness of other economies in the region, and this had increased demands for infrastructure projects and the development of other sectors, he said.

Mirando Goeltom, the senior deputy governor of Bank Indonesia, said things were looking good for Indonesia amid sluggish global economic growth, which was mired in uncertainties about the future. However, he cautioned inflationary pressures from the instability of the exchange rate could undermine the country's performance.

Narongchai Akrasanee, Thailand's former minister of commerce, said ASEAN, with its large market of more than 500 million people, represented a huge potential for growth.

However, he also warned that investors were increasingly seeing non-traditional risks emerging from the region, including the SARS epidemic of 2003, the more recent bird flu outbreak, earthquake and tsunami risks, and the remaining high risk of terrorist attacks in some parts of the Philippines, Indonesia and Thailand.

Otherwise, the region was a strong contender to be a major trading partner and investment destination for countries in the European Union, he said.

The EU has in recent years become the largest investor in the region, overtaking Japan and the United States.

Narongchai noted that the establishment of Trans-Regional EU-ASEAN Trade Initiative (TREATI) in 2003 could pave the way for a freer trade between the two regions.

Under the TREATI framework, the two parties have agreed to focus on six areas -- agriculture, fisheries, electrical and electronic goods, forestry, trade and investment facilitation.

Narongchai suggested that the EU and ASEAN consider formalizing their relations through formal institutions, such as an ASEAN-EU joint secretariat, business council and a free trade agreement.

FDI flows into ASEAN

(billions of U.S. dollars) ---------------------------------------------- 1995 2000 2003 ---------------------------------------------- 28.1 23.4 19.3 ---------------------------------------------- Source: ASEAN Statistical Yearbook, 2004

 

 

 

 

President to open interfaith dialog in Bali

JAKARTA (Antara): President Susilo Bambang Yudhoyono is scheduled to open a two-day international interfaith dialog in the framework of the Asia-Europe Meeting (ASEM) at the Bali International Convention Center in Nusa Dua on July 21, an official said on Friday.

Ministry of Foreign Affairs spokesman Marty Natalegawa said Indonesia and Britain would act as the main sponsors of the event, with cosponsors including Denmark, the European Commission, Finland, Greece, Malaysia, the Netherlands, the Philippines, Singapore, Thailand and Spain.

Marty said participants of the dialog would include religious figures, intellectuals, media representatives and officials from Asia and Europe, as well as representatives from the Holy See and other international organizations like the United Nations, the Arab League, the Islam Conference Organization and the Secretariat of the Association of Southeast Asian Nations.

Marty said the dialog, which will have the theme Building Interfaith Harmony within the International Community, would be used to develop and promote mutual understanding and respect among all religions and faiths in Asia and Europe.

"The recent bombings in London are very relevant," he said, adding that a declaration was expected from the event.

 

 

 

Fuel problems may not hamper investment  

The Investment Coordinating Board (BKPM) remains upbeat that domestic and foreign investment will reach Rp 179 trillion (US$18.2 billion) as projected in the state budget.

The board also dismissed concerns that the ongoing investment activities in the country would fade away following a disruption in the stable economic condition as an impact of the increasing global oil prices and ballooning fuel subsidy expenses that government will need to pay.

"I don't want to speculate on a possible drop in investment for this year's second semester. The fuel problem is unlikely to affect investor appetite although in other countries there are several investment corrections," BKPM chairman Muhammad Luthfi said on Thursday.

He made the remarks after a meeting with Vice President Jusuf Kalla on Indonesia's investment progress and the impact of soaring global oil prices on investment here.

The government has targeted approvals of foreign direct investment this year to reach Rp 133.41 trillion -- similar to 2003 -- while domestic investment is expected to reach Rp 46 trillion.

The influential National Economic Recovery Committee (KPEN) had warned the government that there was a concern among foreign investors about fiscal stability as the government continued to maintain its massive fuel subsidy.

KPEN chairman Sofjan Wanandi said earlier that foreign investors were now reassessing their stance toward Indonesia since there was an uncertainty in the country's fiscal condition that might affect currency exchange, inflation and interest rates.

The budget assumes a fuel subsidy of a total of Rp 76.5 trillion for the fiscal year, which it would be if the annual average price of crude oil stayed at $45 per barrel, an exchange rate of Rp 9,300 against the U.S. dollar and fuel consumption of 59.6 million kiloliters.

But with oil prices now hovering at $62 per barrel, the rupiah around Rp 9,800 (its closing rate on Thursday) and fuel consumption estimated to soar by 10 percent over and above the initial assumptions, the government may have to spend Rp 135 trillion, or more, to finance the fuel subsidy.

Luthfi, however, said he believed that the fuel problem was likely to be resolved soon as the government would not allow it to do further damage to the country's otherwise stable macro-economic condition, as well as putting at risk its fiscal stability.

"Thus far, the investment prospects in the country are still good, because there has been no sign from investors that would lead to a declining investment climate. We can actually see this positive trend in our first semester (2005) investment approvals," he said.

On average, fresh investment approvals -- both from domestic and overseas sources -- rose by 51 percent to Rp 80.85 trillion in the first semester compared to the same period last year, according to BKPM figures.

 

 

 

 

Investment approvals up, boosting hopes of confidence revival

Approvals for fresh domestic and foreign direct investment (FDI) are on the raise, increasing optimism that a pickup in investor confidence has finally started to set in.

On average, fresh investment approvals -- both from domestic and overseas sources -- rose by 51 percent in the first semester compared to the same period last year to Rp 80.85 trillion (US$8.5 billion), the Investment Coordinating Board (BKPM) announced on Tuesday.

BKPM chairman Muhammad Luthfi said FDI approvals during the January to June period alone posted a jump of 72 percent to Rp 56.34 billion compared to the corresponding period a year earlier.

New investment approvals in the chemical and pharmaceutical industry led the advance with 21 projects valued at $2.6 billion, ahead of the construction sector at 53 projects worth $540.7 million, he added.

Also included in the list of FDI approvals were 34 projects worth $531 million in the transportation, warehousing and communications sectors, 22 projects worth $520 million in the mining sector and 34 projects worth $384 million in the food processing sector.

The bulk of the FDI proposals came from Britain (50 projects worth $989 million), Singapore (108 worth $591 million), Canada (4 worth $553 million), the Netherlands (24 worth $374 million) and Japan (32 worth $332 million).

With Indonesia still struggling to lure back investment in the wake of the crisis, the BKPM data should provide some hope of a return of foreign investment, which is badly needed to quicken the pace of economic growth.

The country's FDI approvals reached their peak in 1995 with a record $39.66 billion, but collapsed to $13.64 billion in 1998 as a result to the Asian monetary crisis and ensuing political turbulence here.

National Development Planning Board (Bappenas) chairwoman Sri Mulyani Indrawati said the figures were encouraging, making the government's full-year total investment target of Rp 179 trillion attainable.

"Achieving 45 percent of the full-year target (by June) is good enough," she said.

The government has targeted FDI approvals for this year at Rp 133.41 trillion ($14 billion) -- similar to what was achieved in 2003.

Other parts of the BKPM report show that domestic and foreign direct investment realization rose 43 percent to Rp 39.7 trillion in the first semester of this year compared to the same period last year.

The increase was mostly attributable to a 70 percent increase of FDI realization during the period to Rp 31.84 trillion -- equal to about 97 percent of the government's full year realization target.

In total, domestic and foreign investment realization in the first six months of the year provided jobs for 129,227 workers.

FDI realization alone provided 69,515 jobs, mostly in the construction, chemical and pharmaceuticals, metals, machinery and electronics, transportation, warehousing and communications, and food processing sectors.

In an attempt to improve the country's investment climate, the government has urged the BKPM to finalize the drafting of a new investment bill that would slash the time needed to set up a business from 156 days to only 30, and that would ensure proper coordination among ministries.

Meanwhile, the government is also vowing to curb rampant corruption and red tape, loosen rigid labor laws, improve tax rates and administration, guarantee legal certainty and work to improve the country's ailing infrastructure.

 

Indonesia, Japan's first EPA talks to kick off

In response to an agreement inked between Japan and Indonesia during President Susilo Bambang Yudhoyono's visit to Tokyo in June, senior officials from the two Asian nations will initiate the first round of free trade talks here on Thursday.

Modalities needed for further and more substantive negotiations will be proposed at the two-day talks, part of scheduled rounds of negotiations aimed at establishing a bilateral Economic Partnership Agreement (EPA), Minister of Trade Mari Elka Pangestu said in a media statement on Wednesday.

The modalities will cover, among other things, the basic principles of negotiations, the structure and coverage of the negotiations, place and frequency of meetings, as well as setting up formations for expert groups.

Indonesia will identify the areas in which to negotiate after the modalities are agreed upon.

The areas range from trade of goods and services, customs procedures, rules of origin, investment policy, government procurement, movement of natural persons to intellectual property rights.

Soemadi DM Brotodiningrat, former Indonesian ambassador to Japan, will head the Indonesian delegation in Thursday's talks, while Japan will be led by Mitoji Yabunaka, deputy minister for Japanese foreign affairs in charge of EPA.

Before agreeing on the upcoming talks, both countries underwent a series of preparatory talks to identify concerns and benefits of a possible bilateral free trade agreement.

From Indonesia's perspective, aside from seeking cooperation to enhance local industrial competitiveness through Japan's assistance in developing supporting domestic industries, it also raised other concerns in the sectors of agriculture and fisheries.

In agriculture, Indonesia has asked Japan to recognize the country as being free of foot-and-mouth disease, so that in the future Indonesia may export meat and dairy products to the Asian giant.

Indonesia is also seeking Japan's support in strengthening its local tuna fisheries management, as well as combating illegal fishing in the country's exclusive economic zone.

On Japan's side, it has requested that Indonesia iron out investment regulations, and reduce or eliminate tariffs on vehicles and auto parts.

For instance, Japan wants explanations about Indonesia's rules in investment in the oil, natural gas and mining sector, as well as in the power sector, in regards to the recent annulment of Law No.20/2002 on electricity.

Japan is also seeking deeper liberalization in financial services, with interest in nonbanking financial services including insurance.

Also, in response to Indonesia's requests, Japan is reviewing rules to possibly allow unskilled Indonesian workers, particularly nurses and care givers, to secure full-time employment in Japan.

 

 

 

 

 

 

 

Californian businessman builds scuba diving center in Maluku

Ambon, Maluku, July 12 (ANTARA)  An investor from California has started building a scuba-diving center in formerly sectarian conflict-torn Ambon, the local tourism office said here Tuesday.

The building of the scuba-diving center in the waters of Latuhalat village in Nusaniwe subdistrict in Ambon city, was started in May 2005 by John Black to promote the underwater scenery, Ape Watratan said.

He said the establishment of the scuba-diving center was encouraging as Ambon had been torn by bloody sectarian conflicts for several years.

No foreign investor was interested in making money in the tourism sector following the deadly conflict which broke out on Jan 19, 1999.

The number of domestic and foreign tourists, however, began to increase as the security situation in Ambon began to improve last year, Ape said.

Some 1,984 tourists visited Maluku last year, a 59.74 percent increase compared to the 1,242 in 2003.

Ape said Maluku governor Karel Albert Rahalu was ready to facilitate investors interested in doing business in the province.

 

 

 

 

 

 

 

 

 

RI-New Zealand cooperation in training international standard nurses

Surabaya, July 12 (ANTARA) - Surabaya-based Airlangga University (Unair) has established cooperation with New Zealand`s Auckland University of Technology (AUT) in international standard training of nurses, midwives, and people for master`s program.

The Memorandum of Understanding on the cooperation was signed by AUT Rector Chris Hawley and Unair Rector Prof DR Med Puruhito here on Tuesday.

According to Puruhito, actually the cooperation between the two universities had already been established in September 2004, but on July 12 the two sides decided to renew the cooperation for another five years after as two sides came to a conclusion that furthering the cooperation will be mutually benefial.

He said that the Unair-AUT cooperation is desigend for the development of business education from the level of master of management to master of business, while the nursing study program would be promoted to the master`s program.

"Besides establishing cooperation in School of Medicine and Faculty of Economy, we also have developed cooperation in social studies, including social and anthropological research as well as social communications study program for virtual, television and radio," he said.

He hoped that the cooperation could be expanded by inviting AUT lecturers to Unair or providing Indonesian students to pursue master`s program study in New Zealand.

Meanwhile, Unair`s Nursing Program Manager dr. Siti Pariani MS MSc PhD, also hoped that under the cooperation, Indonesia would have the opportunity to recruit nurses and midwives for employment at overseas hospitals.

"So, Indonesia would not only send informal sector workers to some neighboring countries, but also nurses and midwives who are in great demand in some European countries," she added.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Over US$ 6 billion in foreign assistance now available for Aceh reconstruction

Jakarta, July 12 (ANTARA) - The amount of foreign financial assistance available for the reconstruction of tsunami-devastated Aceh probvince now stands at more than US$6 billion, half of which has already been channeled into Indonesia`s state budget, Coordinating Minister for People`s Welfare Alwi Shihab said here Tuesday.

"Half of the foreign assistance has already been entered into the state budget," Alwi told an international symposium on Indonesian anthropological journals held at the University of Indonesia`s Center for Japanese Studies in Depok, south of here.

Foreign agencies can use the remaining part of the assistance to rebuild Aceh so long as their projects are carried out in coordination with Indonesia`s Aceh Rehabilitation and Reconstruction Executive Board, he said.

"For example, if a U.S. donor wants to rebuild a road in Aceh, it should make a bid and carry out the project in coordination with the board," he said.

However, if a foreign institution wants to rebuild a hospital directly, it must implement the project in line with Indonesia`s master plan on Aceh.

Alwi said rebuilding such transportation facility as ports in Aceh was a top priority so that Aceh reconstruction projects would run smoothly.

"In the Aceh reconstruction program priority is to be given to the rebuilding of ports or materials for the other projects would never arrive in the province," he said.

Alwi also said his office was waiting for reports on the funds all Indonesian governors as well as state and provincial enterprises had collected for Aceh.

"We have instructed all governors to submit the reports to my office on July 14 at the latest," he said.

 

 

 

 

 

 

 

Indonesia, Australia agree to cooperate developing science, technology

Jakarta, July 11 (ANTARA) - Research and Technology Minister Kusmayanto and Australian Education, Science and Training Minister Brendan Nelson on Monday signed an agreement on cooperation in the development of science and technology.

The cooperation would be developed for such vital sectors as agriculture, energy, climate, global environment, marine research and biotechnology.

"I believe this cooperation will lead to broad cooperation between the two countries in the field of science," Nelson said following the signing ceremony.

The two ministers also signed a memorandum for inter-agency collaboration in science and innovation which would serve as a forum for officials of the two governments to meet regularly to identify opportunities to establish collaboration in the scientific field.

Nelson said the Australian government was giving very significant support to the creation of cooperation between the two countries in the research field.

Citing an example, he said, the Australian Research Council which is a prominent research funding institute in Australia was supporting 71 projects that involved Australian and Indonesian researchers between 2002 and 2004.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Indonesian coal production expected to rise 16 percent in 2005

JAKARTA (AFP): Indonesian coal production is forecast to rise nearly 16 percent to reach 155 million tons this year, an industry executive said here on Tuesday.

Jeffrey Mulyono, who chairs the Indonesia Coal Mining Association, told AFP that production last year stood at 134 million tons and estimates for this year are 155 million tons on the back of increased capacity and the entrance of new players.

"Out of that production, our exports will still stand above 100 million tons as domestic demand will only reach about 45 to 50 million tons," Mulyono said.

Indonesia normally exports some 65-70 percent of its production annually.

Mulyono said that according to reports from members, the association expects coal production charges to rise by US$2-$3 per ton due to higher diesel costs but this should be at least partly offset by rising coal prices.

State oil and gas company Pertamina raised diesel prices for mining and oil and gas firms to Rp 4,740 (50 US cents) per liter, effective July 1, to reflect the full market price. The previously subsidized cost was Rp 2,200.

The increase was aimed to help ease pressure on the government budget from rising fuel subsidies.

 

 

 

 

 

 

 

 

Krakatau Steel expands hot-rolled-coil production to 3.4 million tons

JAKARTA (Antara): State-owned steel manufacturing company PT Krakatau Steel will expand its hot-rolled-coil production by one million tons with an additional investment commitment of US$350 million to $550 million, an official of the firm said on Tuesday.

"The completion of the project, expected by the year 2008, will raise the company's production capacity to 3.4 million tons of hot-rolled coils per annum," Krakatau Steel's secretary Doni Sugihmukti said.

The expansion of the existing production capacity of 2.4 million per annum would be done to meet rising demand for the product on the domestic market, he said.

Doni explained that the expansion plan was part of the company's effort to become a dominant steel player with production capacity of 10 million tons per year by the year 2013.

Irvan Kamal H, chairman of Krakatau Steel's privatization and expansion project, said that prequalification was being processed before being internationally tendered.

"The tender will take place within five-and-a-half months. The winner will be announced in January next year and the project will commence in June," he said, adding that the construction of the new project would take between 24 to 26 months.

 

 

 

 

 

Kalimantan opening 1 million hectare of land for oil palm cultivation

Sangatta, E Kalimantan, Jul 11 (ANTRARA) - The East Kalimantan provincial administration is planning to establish oil-palm plantations on one million hectares of land in cooperation with foreign and domestic investors, a spokesman said.

The provincial administration was making at least 1.5 million hectares of land in East Kutai district available for the project, East Kutai District Chief H. Mahyudin told reporters here Tuesday.

He said the regional government was optimistic that the project can be realized in a relatively short time as domestic investors` interest in it was "quite encouraging."

"Many investors have submitted proposals to take part in the project after the local administration had pledged to provide all the necessary supporting facilities, including its basic approval," he said.

He said the East Kutai district administration had in the past already facilitated and seen the opening of oil-palm plantations in many subdistricts, namely in Kongeng, Muara Wahau, Sangkulirang, Kaliorang, Telen, Muara Bengkal and Muara Ancalong.

"Investors` interest in the project is good because security conditions in East Kutai district are very conducive," he said adding that this was also due to the local people`s awareness about the positive impact the project would have on their welfare and their region`s economic growth.

He said some of the investors who had expressed interest in the project were PT. Makin, PT. Bumi Resoursces and PT Kiani Lestari.

"PT Kiani Lestari is now seeking at least 100,000 hectares of land in Muara Bengkal subdistrict to cultivate oil palm," he said.

Meanwhile, HM Abdul Halim Johar MM. head of the local plantation service, said a number of companies were already operating oil palm plantations in East Kutai district, namely PT Makin (Gudang Garam Group), PT Astra Agroindo (Astra Group), PT Mussi Mas, PT Bumi Resources and a company of the Salim Gruop.

 

 

 

 

 

President signs mortgages-on-ship decree

Jakarta, July 10 (ANTARA) - President Susilo Bambang Yudhoyono has signed a presidential decree on mortgage on ship that will facilitate national shipping companies to obtain credits from national and international banks.

Chairman of the Indonesian National Shipowners Association (INSA) Oentoro Surya said here on Sunday that the decree was signed as a follow-up to the Presidential Instruction No.5/2005 on the Empowerment of National Shipping.

"The decree was signed to ratify the international convention on the maritime and mortgage credits on ship (from the Maritime Lines & Mortgages) in order to provide shipping companies with legal certainty in applying for credits," he said.

Surya said that he was informed of the signing by the president of the decree by Deputy Cabinet Secretary Lambok V Nahattans on Friday.

He said that with the signing of the decree, the mortgage provision that had been based on the Dutch law for over 200 years was changed into a law on mortgage on ship based on the international convention.

"This would encourage national shipping companies to borrow money from national and international banks," he said adding that shipping firms would be able to fulfill their dream of procuring some 984 ships until 2009.

 

 

 

 

 

 

 

Bali reelected world’s best tourist island 2005

New York, July 9 (ANTARA) - Indonesia`s resort island of Bali was reelected by international tourism magazine Travel+Leisure as the best tourist island in the world in 2005 based on the judgement of its editor and readers, an Indonesian diplomat has said.

"We have been informed by the magazine`s editor about the matter. An appreciation ceremony will be held on July 14," Indonesian Consul General in New York, Kristio Wahyono, said here Saturday.

Wahyono said Indonesia`s Culture and Tourism Minister Jero Wacik was expected to attend the ceremony and receive the award of appreciation to represent the country.

Bali receives the appreciation for the second time after the first one last year.

According to the New York-based magazine which has networks in different countries, Bali was considered the best among other resort islands across the world based on the criteria about hotel services, transportation facilities, reasonable prices and tourist packages among other things.

"We are proud of this performance as our culture and tourism remain in the heart of the international community, Wahyono said when receiving an Indonesian arts team slated to appear at I La Galigo in New York.

I La Galigo which is a combination of theatrical performance, dancing, reading poems and traditional musics from Bugis in Indonesia`s South Sulawesi province will perform at the Lincoln Centre in New York on July 13-16, 2005.

 

 

 

 

 

Japanese SMEs to invest in component sector in Indonesia

Jakarta, July 9 (ANTARA) - Japanese small and middle scale businessmen are to invest in the component industry in Indonesia and thereby help to accelerate growth in Japanese investment in Indonesia in general, an official of the office of the coordinating ministry for economy said recently.

A 100-member small and medium-scale business delegation from Japan will visit Indonesia to initiate the investments, Mahendra Siregar, deputy for international finance and economic cooperation to the coordinating minister for economic affairs, said on Friday.

He said one of the reasons of the slow progress in Japanese investment in Indonesia compared with other countries was the low investment in component industries, including investment in the automotive, electronic and other industries.

He said a study carried out by the Japanese small and middle scale industry association, JETRO, had shown that Japanese investment in other countries such as Thailand had grown fast due to the existence of component industries.

"Component industries are badly needed as supporting units to big industries. This is where there is a difference between Indonesia and Thailand," he added.

Meanwhile, in Indonesia, he said, the automotive industry, mainly the car assembling industry, still had to import all the components it needed, meaning that there was no relation between big industry and component industries.

In Japan, he added, the component industry is controlled mostly by small and middle scale businessmen.

 

 

 

 

 

 

 

 

 

RI, China ready to cooperate in defense technology development

Jakarta, July 8 (ANTARA) - Indonesia and China are ready to cooperate with each other in the developemnt of defense technology including the manufacturing of rockets, Research and Technology Minister Kusmayanto Kadiman said here Friday.

The cooperation would not only include rocket technology but also science as well as military and outer space technology development, the minister said.

Speaking to reporters after attending the installation of General Sutanto as the new National Police Chief at the State palace, Kusmayanto said an agreeemnt on the cooperation would be signed by President Susilo Bambang Yudhoyono during his visit to Beijing later this month.

The agreement would also cover cooperation in the agricultural, pharmaceutical and transportation fields.

The cooperation, however, would be mainly focused on defense technology development since China had high capability to produce strategic vehicles, communication gadgets and other electronic gear, he said.

The minister said the defense technology cooperation could not be realized in the near future but in the next five years.

The cooperation with China which could be realized in the near future was a partnership in the agricultural sector, he said.

Yudhoyono`s plan to visit China was a follow-up to a strategic partnership agreement between Indonesia and China. The president and his Chinese counterpart Hu Jintao signed here last April.

 

 

 

 

 

 

 

  

U.S. grants Indonesia import duty cuts

The United States has agreed to add eight categories of products to its scheme for reduced import duties on Indonesian goods entering the U.S. market as part of its overall efforts to help tsunami-affected countries, the Ministry of Trade has said.

"The value of exports to the U.S. covered by the eight categories last year stood at US$301.67 million," ministry spokesman Iman Pambagyo told The Jakarta Post on Friday.

The eight groups of products fall within four broader groups, namely, edible products of animal origin (HS 0410.00.00), ether-alcohol of odoriferous or flavoring compounds (HS 2909.50.40), plywood with outer ply of less than 6 millimeters in thickness (HS 4412.13.40) and contact lenses (HS 9001.30.00).

The eight groups of goods have been eligible to benefit from the scheme since July 1, along with the hundreds of other categories of goods that have been on the list for years.

Iman said that Indonesia had benefited most from the U.S.'s Generalized System of Preferences (GSP) scheme this year, which is worth $500 million for all the tsunami-affected countries.

The GSP scheme is a program under which developed countries are granted preferential duty cuts for selected products.

Following the Dec. 26 tsunami disaster that claimed up to 230,000 lives along Asian coasts, the world poured aid into the devastated countries. The more developed countries have also offered various trade relief measures.

 

 

 

 

 

 

China’s furniture industries to be relocated to RI

Jakarta, July 5 (ANTARA) - Some Chinese furniture factories planned to relocate their companies to Jepara district, Central Java province, in order to improve their competitiveness as well as to use timber and rattan in Indonesia more efficiently.

"Chinese investors will relocate their furniture industries as timber and rattan are available in a huge quantities in Indonesia," said Trade Minister, Mari Elka Pangestu here on Tuesday.

According to Mari, the main purpose of the Chinese investors to relocate their industries to Indonesia was to develop synergy between the two countries` businessmen to increase their competitiveness on the regional and global market.

"China has capital, export market, and way to produce products efficiently, while Indonesia has the raw material and skills," he said.

However, Mari said that she did not know how many of the Chinese investors will invest their money in Indonesia.

 

 

 

 

 

 

 

 

 

 

 

Venezuelan businessmen interested in Sulawesi’s commodities

Manado, July 5 (ANTARA) - Venezuelan businessmen are interested in buying North Sulawesi`s commodities the samples displayed at the Trade and Tourism Fair Actual Products of Indonesia 2005 in Caracas, a local official has said.

"They will carry out trial orders for virgin coconut oil, nutmeg oil, clove oil, coconut flour and vanilla," Albert Pontoh, head of the North Sulawesi` industry and trade office said here on Tuesday.

In the fair held on June 25 to 28, 2005, he said, Venezuelan businessmen promised to visit the provincial capital of Manado to follow up on their contacts.

Albert who also attended the fair said they bought the samples to be sold in the country`s market to find out about the customers` response.

He hoped the businessmen would order the commodities, so that the province`s exports will increase.

 

 

 

 

 

 

 

 

30 companies interested in oil and gas blocks

Jakarta, July 5 (ANTARA) - Some 30 domestic and foreign companies are interested in developing 14 oil and gas blocks offered by the government this year.

Director of Oil and Gas Exploration and Production at the Energy and Mineral Resources Ministry, Novian M. Thaib said here on Tuesday that there were 54 documents on information about the oil and gas blocks which had been taken by the 30 companies.

Some of the 30 oil and gas companies based in the US are ConocoPhillips, Chevron, Husky Energy, Marathon Energy, and Amerada Hess.

The others are Shell of Netherlands, Santos (Australia), and Genting Oil (Malaysia).

The Indonesian government last month offered 14 oil and gas blocks through regular bids and the other 13 blocks through the direct bidding system.

The oil and gas blocks offered through regular bids include those in Cakalang, Kerapu, and Baronang in offshore Natuna, Riau Islands, East Bawean I and II in East Java`s offshore areas, Lampung I and II in Lampung, Buton I and II, and Damls block in Makassar.

Meanwhile, the oil and gas blocks offered through direct bids include Lhokseumawe in Naggroe Aceh Darussalam, West Kampar (Riau), Bunga MAs (South Sumatera), Bengkulu (Bengkulu), Citarum (West Java), North East Madura V (East Java), North Bali II (Bali), East Kangean (East Java), Taritip (South Sulawesi) Sebatik, Wailawi, Amborip V and VII in Arafura Sea, Papua province.

 

 

 

 

 

 

 

 

 

 

 

 

Foreign investment in RI to increase significantly

Jakarta, July 5 (ANTARA) - Foreign investment in Indonesia will grow significantly as Chinese businessmen`s interests in expanding their business network abroad have been increasing, a businessman said here.

"Chinese businessmen are very interested in operating in Indonesia, especially in the mining and property sectors, because their prospects in these sectors are bright," Sukanta Tanudjaja, chairman of the Indonesia-Chinese Businessmen`s Association told newsmen after the signing of a joint venture deal between the Sahid group and China Ruier International Group Ltd here on Tuesday.

He further said that the Chinese businessmen wished to expand their business by injecting fresh capital to get more profits because their country`s economy is growing rapidly.

As the result of this rapid economic growth, Sukanta said that the Chinese government tried to slow down the country`s economy growth.

If the Chinese businessmen make an investment in Indonesia, he said, more job opportunities will be available to the people and eventually reduce unemployment in Indonesia.

"We`re optimistic they will soon make an investment as some of these Chinese businessmen will be coming here next September," Sukanta added.

Chinese investment in Indonesia increased by 20 to 30 percent each year. In 2003, their investment amounted to US$100 million, in 2004 US$125 million and in 2005 US$150 million.

 

 

 

 

 

 

 

 

 

 

 

China ready to build bridge over Sunda strait

Bandar Lampung, July 5 (ANTARA) - China is ready to build a bridge worth almost US$10 billion over Sunda Strait connecting Sumatra and Java islands.

Leader of a Chinese delegation, Ou Kuang, when meeting Deputy Governor of Lampung, Syamsuria Ryacudu here Monday, said that the Chinese group would support and take part in the construction of the big scale project offered by the Lampung provincial administration.

"We hope that the Indonesian government would give more opportunities and facilities to foreign investors in taking part in the province`s development projects," he said, adding that the Chinese delegation`s visit to the province at the invitation from PT Artha Graha`s boss, Tommy Winata.

Ou Kuang said that the Chinese delegation also invited the Lampung Governor to China for first hand information about the Chinese group`s lines of business of handling about 10,000 different products.

According to Prof Wiratman, an Indonesian bridge construction designer, who also attended the meeting, the building of the 29-km long and 60-m wide bridge could be completed in eight years.

"While, the break event point of building the project would be reached in 15 years," he said.

 

 

 

 

 

 

Indonesia ready to ratify convention on maritime liens and mortgages

Jakarta, July 5 (ANTARA) - Indonesia is ready to ratify the international convention on maritime liens and mortgages of 1993, Transportation Minister Hatta Rajasa said here on Tuesday.

"It just wait for the President to sign the draft on it. It will not be long now," he said when opening the 13th meeting of members of the Indonesian National Shipowners Association (INSA).

The ratification of the convention would be important following the implementation of Presidential Instruction Number 5 of 2005 about the empowerment of the national shipping industry.

"The ratification is important to promote the confidence of banks and finance institutions at home and abroad with regard to the provision of loans for Indonesian shipping industries for the expansion of their fleet," he said.

He said that one of the obstacles hindering national commercial fleet development was availability of capital.

Hatta said the government in cooperation with the INSA was currently also preparing the concept for the ratification of the international convention on arrest of vessels.

He said the aim of the convention was improving legal certainty in case a vessel had to be seized through a swift and simple legal procedure.

"If the two conventions were ratified it is hoped they could provide conducive business climate and legal certainty for banks and investors to help finance shipping industries in their effort to develop national fleet," he said.

He said the government had also proposed foreign soft loans especially from Japan under a two step loan scheme.

"The scheme is expected to be a financing alternative for the expansion of the national merchant fleet," he said.

INSA`s chief Oentoro Surya meanwhile had urged the government to immediately materialize the establishment of a non-bank financial institution that would exclusively operate in ship procurement financing.

He said if the institution had been established, the two step loan scheme would no longer be needed.

The INSA had also urged for a tax reduction for the national shipping industry like those enjoyed in Indonesia`s neighbouring countries Malaysia and Singapore.

In its statement the INSA had also called for an improvement in port management to avoid monopoly and for a more practical ship registration system and procedure.

 

 

 

 

 

 

 

US$ 2.8 billion in funds now available for Aceh, Nias reconstruction

Jakarta, July 5 (ANTARA) - The chairman of the Implementing Body for Naggroe Aceh Darussalam (NAD)`s and Nias` Reconstruction and Rehabilitation, Kuntoro Mangunsubroto, said here Tuesday US$2.8 billion in funds were now ready for spending on the implementation of the body`s mission.

"We will be able soon to dispose over some US$2.8 billion in funds," Kuntoro said after attending a limited cabinet session on Aceh and Nias rehabilitation and reconstruction issues.

Of the overall amount, Rp8.4 trillion (US$900 million) came from the state budget and US$1.9 billion from donor countries as well as non-governmental organizations.

Work on a number of large and medium projects such sea-ports will soon begin, he said.

He said in implementing the rehabilitation and reconstruction projects in the two regions, he had to think of the procurement and distribution of the needed construction materials such as timber, concrete iron and cement - goods for which domestic demand was increasing sharply.

NAD`s need for timber over the next four years would be seven million cubic meters whereas national timber production was only 2.5 million cubic meters a year. To cover the shortfall, it would be necessary to import timber from other countries, for instance West European countries. The same applied to cement and concrete iron.

Kuntoro called on national businessmen to invest in NAD saying that if the prices of building materials increased inordinately, importing them would be the only alternative.

 

 

 

 

 

 

 

RI to earn US$ 6 billion from foreign tourist arrival in 2005

Balikpapan, E Kalimantan, July 5 (ANTARA) - Foreign tourists visiting Indonesia are expected to contribute US$6 billion to the country`s foreign exchange earnings this year, Culture and Tourism Minister Jero Wacik said.

He said most foreign tourists coming to Indonsia prefer natural resorts. Therefore, entrepreneurs engaged in tourism should adopt and maintain environment-friendly business strategies so that more foreign tourists would visit Indonesia, the minister said here Monday.

Besides the contribution from foreign tourists , the tourism industry would also earn Rp 100 trillion from domestic holiday-makers this year, he said.

He said tourism was the country`ss second biggest foreign currency earner after oil and gas and surpassed timber, textiles, chemicals and automotive industries.

The World Tourism Organization, he said, had predicted that some 660 million people would travel around the world this year and about one billion would travel outside their own countries for pleasure in 2010.

 

 

 

 

 

 

Indonesia finally has industrial policy

 

After more than a decade without clear direction, Indonesia's manufacturing sector finally has a comprehensive detailed plan to develop the country's manufacturing industries for the next 20 years.

The Ministry of Industry revealed its National Manufacturing Sector Development Policy, which prioritizes 32 sectors of some 365 existing industries in the country.

The 32 sectors -- chosen through a thorough quantitative measurement of its international and domestic competitiveness -- have been contributing 78 percent of the national output and 83 percent of the country's total non-oil and gas exports.

The Ministry's secretary general Agus Tjahajana explained that the priority sectors were grouped in two main categories: the basic (core and supporting) and future industries.

The core and supporting sectors are existing industries, which survived the monetary crisis in 1997. Agus said the government would continue to support the core sectors to return to their precrisis level of competitiveness in the next five years and further strengthen them to be world class industries in the long term.

"Should any of them fail due to natural competition over time, we have no choice but to shift to others. Nevertheless, we are determined to do our best to assist all of them (basic sectors)," Agus said on Friday during a workshop on Industrial Policy for Journalists.

The basic manufacturing is expected to support the development of future industries and all the agro-based industries upgraded from the basic manufacturing sector.

The National Policy document includes a detailed target of what products each sector should be able to produce in 10 years from now and a matrix of who would be responsible for each activity, as well as industrial zoning maps.

Agus elaborated that 20 industries would be developed using a cluster approach, while the remaining 12 would have non-cluster or development according to individual characteristics.

The industrial cluster approach would enable the government to develop a certain manufacturing sector from downstream to upstream, through facilitating networking and synergy between core, related and supporting industries of all sizes, and then future sectors.

"It is like a conglomerate, but it involves numerous different firms -- small, medium and large -- instead of, for example, all under one holding company," Agus said.

The ministry chose to adopt the industrial cluster approach, which tends to push the priority sectors evenly, mainly because it was the best option for the government's limited budget.

"If we have the money, we might consider selecting a limited number of leading sectors and use the budget to push them in order to pull all other industries," he said.

However, Agus stressed that looking at other countries' experiences -- such as England, France, the U.S., Thailand and Malaysia -- it would take years or even decades to develop a single fully-integrated cluster.

"Now we have somewhere to start. If this could not serve as a road map or blueprint, I don't know what could."

He said further that the 32 priority sectors would enjoy preferential treatment from the government, including fiscal, monetary and administrative incentives.

The government would expand the market of products from the 32 industries, prioritize foreign direct investment for them, push capacity building of their human resources, direct and organize university research for their benefit, and build the infrastructure for the sectors.

"To put it simply, if we have to choose where to disburse our limited budget or facilities, we would prioritize those 32," he said.

The ministry acknowledged that the success of the detailed policy depended greatly on commitment, coordination and consistency from all stakeholders in the government, private sector and academic world.

To ensure strong legal support, the ministry is now pursuing the enactment of the policy as a presidential regulation. But until then, it was upbeat that other ministries would stay committed, as the policy was a result of a rigorous inter-departmental and assorted stakeholder consultations.

"We expect this to become the Ministry of Finance's or Ministry of Trade's or other ministries' policy on the industrial sector," Agus said.

The policy formulation was first initiated in 2000 under Minister of Industry and Trade Luhut Panjaitan, but somehow stopped until the next Minister Rini MS Soewandhi restarted it in early 2004. Eventually, the industry ministry under the leadership of Andung A. Nitimihardja managed to conclude the much-anticipated policy.

Agus said the time was right to launch the policy, as local industries had just started to rebound after the monetary crisis, while the stabilizing of the macroeconomic climate, globalization and trade liberalization commitments had started to show a concrete impact on the manufacturing sector.

The national policy document should be able to answer the questions and doubts of observers and industry players in relation to the Mid-term Development Plan (RPJM) 2004-2009 launched earlier this year by the National Development Planning Agency (Bappenas), in which the government announced it would prioritize only 10 industrial clusters.

The RPJM put the clusters under Chapter 18 titled Improving the competitiveness of the manufacturing sector, thus it only explained the government's concern over the sector's ailing competitiveness, but did not outline a plan and steps to develop the country's industries, Agus explained.

In the next five years, the national policy is expected to help the industrial sector to grow by 8.6 percent per annum to support the national economy to expand by 6.6 percent annually.

 

 

 

23 RI women nominated for Nobel Peace Prize

 

Twenty three Indonesian women activists have been nominated for this year's prestigious Nobel Peace Prize by the Association 1000 Women for the Nobel Peace Prize 2005.

Samsidar and Kamala Chandrakirana -- both from the National Commission on Violence Against Women -- Nursyahbani Katjasungkana from the Indonesian Women's Coalition and Galuh Wandita from the Commission for Reception, Truth and Reconciliation are some of the activists whose names were included on the Nobel nomination list.

"I learned that women have their own way of avoiding war and creating peace," says Samsidar, secretary-general of the Indonesian National Commission on Violence Against Women.

Samsidar, a women's activist who is involved in issues like violence against women, reconciliation initiatives and trauma healing, has been working in isolated areas and even many Indonesians may not know her name or her organization.

Thanks to a Swiss government initiative, Samsidar and another 999 women from across the globe were jointly nominated for this year's prestigious Nobel Peace Prize

The names of the 1,000 women and their short biographies can be found on the website www.1000peacewomen.org.

The official nomination of 1,000 women from more than 150 countries was handed to the Nobel Peace Prize Committee in Oslo in January 2005.

"The number 1,000 is symbolic, as the 1,000 nominated women represent innumerable women worldwide who are engaged in the cause of peace and human dignity," Olin Monteiro, the person in charge for 1000 Women for Nobel Prize campaign in Jakarta, said in a press statement sent to The Jakarta Post.

"The nominated women commit themselves daily to the cause of peace and justice, often under the most difficult circumstances. They call for reconciliation and organize peace talks, they rebuild what has been destroyed in villages and cities, they fight against poverty and create new sources of income. They struggle for access to clean water, land and other resources. They care for those infected with HIV (Human Immunodeficiency Virus) and give war orphans a home. They denounce violations of human rights and publicly condemn all forms of torture. They hold silent protests in public places and seek solutions to all forms of aggression," the statement said.

Though it began as a Swiss initiative in 2003, the campaign to nominate 1,000 women for the Nobel Prize has become a project supported globally, thanks to the commendable work of coordinators and many volunteers from 20 regions around the world.

The establishment of the Association 1000 Women for the Nobel Peace Prize 2005 has boosted the campaign. The ambitious association is seeking public support for its campaign for these remarkable 1,000 women who represent millions of women worldwide who are engaged in the cause of peace and human dignity.

" There are millions of peace women! It is in their name that 1,000 women shall receive this prestigious political prize. On the way to the Nobel Peace Prize, they and we are dependent on the support, the ideas, and the benevolence of a broad-based public commitment," the president of the Association 1000 Women for the Nobel Peace Prize 2005 Ruth-Gaby Vermot-Mangold, who is also a member of the Swiss Parliament and the Council of Europe, said at the time of the establishment of the association in April 2003 in Bern.

For the last two years, the Nobel Peace Prize has been awarded to women.

Last year, Kenya's environmental and human rights activist Wangari Maathai won the Nobel Peace Prize for her untiring work to protect the environment in Kenya and Africa.

In 2003, Iran's leading women's lawyer and human rights campaigner Shirin Ebadi won the prize.

The Norwegian Nobel Committee is scheduled to announce the winner of this year's Nobel Peace Prize on Oct. 14.

The prize, which includes 10 million Swedish kronor (US$1.3 million), is awarded in Oslo on Dec. 10 each year.

 

 

Government Urges for Sanctions Against Countries Buying Illegal Wood

The Indonesian government is to request that the international community impose sanctions against countries that often purchase illegal logging wood, particularly from Indonesia.

Vice President Muhammad Jusuf Kalla said that the international world has regulations relating to the conservation of the environment.

Therefore, sanctions should be imposed against countries purchasing illegal wood.

“This is a joint global effort to save the environment,” stated Kalla on Friday (01/07).

According to the Vice President, the government has found data about both local and foreign businesspersons conducting illegal logging activities, for example in Kalimantan and Papua.

These logs were sold to several different countries, in China.

The international organization Environmental Investigation Agency (IEA), based in the UK and the USA has reported, together with its Indonesian partner Telapak, that 300,000 cubic meters of wood from illegal logging in Papua being sent to China.

Because of these crimes, Indonesia loses forests equivalent in size to the nation of Switzerland every year.

President Susilo Bambang Yudhoyono soon plans to visit China.

One of the topics on his agenda will be the purchase of illegal wood by Chinese businessmen.

Indonesia is estimated to have suffered losses amounting to Rp20 trillion because of these crimes.

 

 

 

 

 

 

Govt to make PT Dipasena world’s largest shrimp exporter

 Jakarta, July 4 (ANTARA) - The Indonesian government seriously intends to revitalize PT Dipasena Citra Darmaja and invite foreign interests to invest in the company in order to make it the world`s largest shrimp exporter, Finance Minister Jusuf Anwar said here Monday.

Speaking to the press after a meeting with Vice President Jusuf Kalla, the minister said he had presented a plan to revitalize PT Dipasena which had the potential to become operator of the world`s largest shrimp farm.

"Dipasena ponds contain two of the world`s most popular shrimp species, namely black and white prawns which are a potential source of US$400 million in export earnings a year," Anwar said.

Currently, some 11,000 farmers in Lampung were working under PT Dipasena`s management to tend to some 170,000 hectares of inland ponds in 8 villages.

"The company is integrated. There is PT Dipasena itself, a power plant, an airline, a shrimp nursery," the minister said.

The company`s revitalization was expected to take Rp1.5 trillion in funds but the money would not be provided by the state.

"That`s why we will invite foreign investors. Now there are six foreign investors in Lampung. Previously, there were nine but some of them have merged. They are now conducting a due diligence," he said.

The minister declined to name the six foreign investors.

The government is in the process of conducting a financial as well as legal audit on the investors, Anwar said.

"Dipasena is ours (the government`s) now. We will revitalize it, support the shrimp farmers and we will bring prosperity to the 8 villages," Anwar said.