Indonesia Top News

Indonesia Invites 40 Countries to Attend Bali Process III

2009-03-11T04:12:00.002Z

Some 40 countries have been invited by Indonesia and Australia to attend Bali Process III Meeting scheduled to be held next April in Bali. Spokesman of Foreign Affairs Ministry, Teuku Faizasyah during a press briefing, yesterday said most of the countries invited are participants of Bali Process I and II in 2002 and 2003 and are mostly ASEAN member countries.

In the next Bali Process, the Rohingya boat people issue will be become the main issue besides other migrant issues. Meanwhile, in the framework of returning the boat people who are still in Aceh, the Indonesian government and United Nations High Commissioner for Refugees (UNHCR) are discussing terms of reference on measures to be taken by UNHCR in the region

Indonesia and ROK to Join Hands in Developing Seaweed Energy

2009-03-11T04:01:00.002Z

Indonesia and the Republic of Korea (ROK) will establish cooperation on a biotechnology initiative involving the conversion of seaweed into environmentally friendly energy, said an Indonesian senior official. "We wish to develop a type of biotechnology that utilizes seaweed for energy," said the Maritime and Fishery Ministry Secretary General Widi Agoes Pratikto quoted by the Jakarta Post on Sunday.

He added that Indonesia, as an archipelago, was blessed with immense natural maritime resources potentially convertible into renewable energy, while ROK happened to have the technology to convert seaweed into energy. Pratikto said that the initiative would be followed by other forms of cooperation such as in fish product processing and fish cultivation.

Meanwhile, the President of the Korea Institute of Industrial Technology Kyoung-Hoan Na said ROK's decision to select Indonesia as a partner was due to certain factors. "Indonesia has the natural and human resources, while we bring the technology," he said.

Indonesia Goes Mobile Broadband

2009-03-11T03:52:00.002Z

Indonesian Internet users have choices in accessing Net services now. They can choose both PC based dial up and broadband access that are offered by Internet service providers, or if they prefer mobile and broadband access, there are many GPRS and 3G/W-CDMA services offered by the country's GSM operators such as Telkomsel, Indosat and Excelcom.

That's all? Well, no. CDMA operators just offered their EVDO Rev. A based broadband Internet services. Mobile 8 Telecom launched "Mobi" and Smart Telecom introduced "Jump". These services offer 3.1Mbps downloading speed and 1.8Mbps uploading speed. Mobile 8 uses CDMA 2000 1x and EV-DO technology in the spectrum 800MHz frequency, while Smart Telecom leverages CDMA2000 1x and EVDO-Rev A technology uses the 1900MHz frequency.

Bundled with the Pantech PX-500 PCMCIA modem and 1GB quota, Mobile 8 packages its Mobi service for Rp 499 (US$41). In the near future, "we will launch a USB based modem with the same price", Deddy Irawan, head of Data Business PT Mobile 8 Telecom, told media. Smart sells its Axesstel modem and 6GB access quota with the "prepaid" package Rp 789 (US$65).

The daily Koran Tempo, which has tested both services, is impressed with the services' speeds, but said both still have an issue in term of coverage. (Koran Tempo, February 28, 2009).

Wildlife On The Attack as Indonesia Backs Logging

2009-03-10T03:22:00.002Z

The Indonesian Government has approved a big increase in logging of its tropical forests, a decision that will lead to a rise in carbon emissions and, most likely, lead to further deadly attacks on villagers by tigers and elephants. The end of a 14 months moratorium on logging comes amid a spate of macabre maulings of Indonesians by animals struggling to survive in their dwindling habitats.

On Wednesday, an 83 year old man on the island of Sumatra was killed after 30 wild elephants stampeded through his village. The death followed a month of elephants running amok in the village, which is close to a trail commonly used by the threatened species. "The elephant routes are almost gone," said Johny Mundung, the co-ordinator for the Indonesian environmental group Wahli in the Sumatran province of Riau, where the attack occurred.

Four people have died in Sumatra in the past months due to wild elephant attacks. However the deaths caused by Sumatran tigers have been even more dramatic. The death by mauling of an illegal logger in Sumatra on Wednesday was the ninth in five weeks. About half of Sumatra's forests have been destroyed, the trees logged and, in some cases, replaced with palm oil and pulp plantations.

All the deaths caused by elephants and tigers occurred in areas where such plantations abound. Indonesia's deforestation has earned it the title of the world's third largest emitter of greenhouse gases, behind China and the United States. More than 80 per cent of the emissions are caused by deforestation.

Indonesia has destroyed more than 28 million hectares of forest since 1990, much of it on swampy, densely forested peatlands that are the world's most potent carbon sinks, absorbing greenhouse gases spewed out by a rapidly industrializing world. In 2007, the Indonesian Government announced it would stop the clearing of the peatlands, shortly before Indonesian President Susilo Bambang Yudhoyono pledged to reduce carbon emissions from forests by 50 per cent in 2009 and 95 per cent by 2025.

Indonesia Gets US$ 20 Million in Grants For Elections

2009-03-10T03:15:00.002Z

Donor nations have committed US$20.2 million in grants to Indonesia through multilateral and bilateral schemes intended to support the country’s democratic elections later this year. The money will be used to strengthen the capacity of the General Elections Commission (KPU), the Supervisory Elections Body (Bawaslu) and increase the role of women in politics.

“We invite other donors to give grants as Indonesia still needs ‘huge’ money to finance the 2009 elections, including to prepare the presidential election,” Bambang Sutedjo, deputy for politics, law, security at the National Development Planning Board (Bappenas) said. The Spainish government announced on Friday its commitment to provide 1.25 million euros (Rp 20 billion) to support elections and help empower the Regional Representatives Council (DPD).

Spanish Ambassador to Indonesia Aurora Bernaldez Dicenta as well as UN Resident Coordinator and UNDP Resident Representative El-Mostafa Benlamlih announced the commitment at Bappenas’ office. The Canadian government was the first donor to pledge, offering US$2 million through the Canadian International Development Agency (CIDA) in March 2008. The Australian government, through its overseas aid agency (AusAID) pledged US$7.3 million.

The Dutch government, through the United National Development Program (UNDP), similarly committed about US$1 million for the management of Indonesia’s election programs. Britain, through its Department for International Development, has provided $1.4 million. “The USAID has also committed to grant $8.8 million to support democratic elections in Indonesia,” Bambang said.

Indonesia will hold legislative elections on April 9 and a presidential election on July 8. Donor countries have set up a Multi Donor Program (Election MDP) to help increase the level and quality of participation from citizens in the polls by funding voter education and information projects through selected civil society groups. KPU member Sri Nuryanti said that all the money was managed by the Bappenas. “Most of the money is allocated for public service advertisements to increase voter participation,” she said.

Indonesia's Java Jazz Festival Gets Into Swing

2009-03-10T02:57:00.006Z

Indonesia's capital has opened one of the world's biggest jazz festivals, with up to 80.000 visitors expected to cheer 220 local and international acts over three days, organizers say. Any concerns over the impact of the global financial crisis on the 5th annual Java Jazz festival appear to have been misplaced, with some visitors complaining about the crowds at Friday's festival launch.

"It's the renowned jazz artists that are on the line up," said Dinesh Sharma, 28, a Malaysian music fan who flew in from Kuala Lumpur to attend the event. This year's line up includes International acts like Jason Mraz, Laura Fygi, Dianne Reeves, Swing Out Sister and Brian McKnight, as well as 150 local acts.

The chaotic Indonesian capital is not usually known for hosting many major concerts or other events, and some visitors complained of difficulties getting to the venue in a city notorious for bad traffic and little public transport. "There are too many people, I had to go round and round one and a half hours before I found parking, but the artists they offer were great," said local fan Yulvia Suman at a performance by Matt Bianco.

The festival is spread over 19 stages with 70-80 performances a day in the cavernous Jakarta Convention Center. The price of a three day pass that excludes many of the international acts is 850.000 rupiah ($70.89), prohibitive for many in a country where millions live on less than $2 a day.

"The appetite is amazing. We didn't expect it," said Eki Puradiredja, the festival's program coordinator. He dismissed concerns over security. Indonesia has been hit by bombings by Islamist militants in the capital and in Bali but there have been no major attacks for more than three years. Another Malaysian fan, Martin Dass, praised the festival.

Indonesia Flushes Target Down Carbon Sink

2009-03-07T03:46:00.003Z

Indonesia's Government has approved a big increase in logging of its tropical forests, a decision that could lead to a major jump in carbon emissions and, most likely, cause further deadly attacks on villagers by tigers and elephants. The end of a 14 month moratorium on logging comes amid maulings of Indonesians from animals that are struggling to survive in their dwindling habitats.

On Wednesday, a man, 83, on the island of Sumatra was killed after 30 elephants stampeded through his village. The death followed a month of elephants running amok in the village, which is close to a traditional trail. "The elephant routes are almost gone," said Johny Mundung, co-ordinator for the Indonesian environmental group Wahli in the Sumatran province of Riau, where the attack occurred.

While four people have died on the island of Sumatra in the past 3½ months due to elephant attacks, the deaths caused by Sumatran tigers have been even more dramatic. The death by mauling of an illegal logger in Sumatra on Wednesday was the ninth in five weeks. About half of Sumatra's forests have been cut down, the trees logged and, in some cases, replaced with palm oil and pulp plantations.

All the deaths caused by elephants and tigers were in areas where palm and pulp oil plantations abound. Indonesia's deforestation has earned it the title of the world's third largest emitter of greenhouse gases, behind China and the US. More than 80 per cent of the emissions are caused by deforestation.

Indonesia has destroyed more than 28 million hectares of forest since 1990, much of it on swampy, densely forested peatlands that are the world's most potent carbon sinks, absorbing the greenhouse gases spewed out by a rapidly industrializing world. In 2007, the Indonesian Government said it would stop the clearing of the peatlands, shortly before Indonesian President Susilo Bambang Yudhoyono pledged to reduce carbon emissions from forests by 50 per cent in 2009 and 95 per cent by 2025.

Melamine Tainted Milk Products in Indonesia

2009-03-07T03:38:00.003Z

An Indonesian consumer group said Thursday 10 imported dairy products, candies and biscuits have tested positive for the industrial chemical melamine. The independent Indonesian Consumer Foundation said the products taken from supermarket shelves in the capital, Jakarta, contained unacceptable levels of the chemical illegally used as a food additive to artificially boost protein levels.

Melamine tainted Chinese dairy products have been blamed for the deaths of least six babies and sickening of nearly 300.000 others in China. Dozens of products have been pulled in Indonesia since the scandal broke in September, but no one is known to have fallen ill. Tests conducted at an accredited laboratory with the University of Indonesia found melamine in Kino Bear Chocolate Crispy, Yake Assorted Candies, F&N Sweetened Dairy Cream, Dutch Mill yogurt drinks and other consumer food items, said Husna Zahir, the group's director.

The products were imported from Thailand, New Zealand and China, the group said in a statement. At the same time, the foundation cleared 18 other products the government's Food and Drug Monitoring Agency said in September were tainted. The government body said repeated testing had found high levels of melamine in dozens of products, including Oreo wafers and Smarties chocolate candies imported from China.

But the foundation said Thursday its tests were negative for those products made by Nestle SA and Kraft Foods Inc. PT Kinosentra Industrindo, which makes Kino Bear Chrispi Chocolate, said testing it commissioned by an independent laboratory found "the product to be free of melamine," said Hidayat, a spokesman who goes by a single name.

Four Dead From Bird Flu in Indonesia

2009-03-07T03:29:00.002Z

Four people died of bird flu in the first two months of this year in Indonesia, the country hardest hit by the disease, the head of the national bird flu committee said on Tuesday. "(The) four cases confirmed are in January and February," Bayu Krisnamurthi told AFP, without providing further details.

Officials earlier confirmed that a five year old girl from Bekasi district east of Jakarta died on January 2, but it was not clear if she was among the four deaths reported by Krisnamurthi. Health Minister Siti Fadilah Supari did not reply to requests to confirm the deaths and the health ministry's official bird flu death toll stood unchanged at 115 on Tuesday.

The health ministry stopped announcing bird flu deaths on a case by case basis in 2008 and only tells the public of confirmed cases weeks or months after a victim has died. The H5N1 virus typically spreads from birds to humans through direct contact, but experts fear it could mutate into a form easily transmissible between humans, with the potential to kill millions in a pandemic.

Communication Ministry Urged Not to Focus on Penalty

2009-02-17T09:57:00.002Z

The government has been urged to act fairly in the sense it was not only the penalty as a sanction that should be arranged, but a reward like incentive for telecommunication operators which have provided better services should also be taken into account. "The government should act fairly. If there is a punishment, a reward like incentive must be provided," President Director of PT. Indosat Johnny Swandi Sjam said.

Johnny responded to the government regulation No 7/2009 on types and tariff of the non tax state earnings (PNBP) of the Communication and Telecommunication Ministry which will come into effect since its signing by President Susilo Bambang Yudhoyono on January 16, 2009. In addition to the arrangement of non tax state regulation from post and telecommunication in the sector of television station, facility and infrastructure rental and training services, the new regulation in liew of a similar one No 28/2005 was claimed by the communication and information ministry as being more comprehensive and complete.

The new regulation was seen as the most complete as it arranged the universal service operation of telecommunication operators from 0.75 percent in the past to 1.25 percent. Operation cost fee (BHP) of telecommunication was also lowered from 1 percent earlier to 0.50 percent from gross income of the telecommunication operators. However, the regulation also set a series of administration sanction and penalty in a relatively big amount if those telecommunication operations fail to meet their obligation.

A sanction like penalty of about Rp 200 million is set for telecommunication operators which can not meet the quality of services or QoS and Rp 600 million for those who violates the supply schedule of interconnection including Rp 10 billion for those which have discriminated the price and access of interconnections. A spokesman for the communication and information ministry, Gatot S Dewa Broto said the issuance of regulation concerned had been done through public consultation and relevant authorities like the finance minister and legal and human rights minister.

Indonesia to Feel La Nina`s Impact in January-March

2009-02-17T09:49:00.002Z

Developing La Nina conditions are likely to continue into Northern Hemisphere Spring 2009, according to El Nino or Southern Oscillation (ENSO) diagnostic discussion issued by the US NOAA`s Climate Prediction Center (CPC) in its email message from Camp Springs, Maryland, the US, on Friday. "Therefore, based on current observations, recent trends, and model forecasts, La Nina conditions are likely to continue into the Northern Hemisphere Spring 2009," said CPC in its statement.

Despite the unusually late start to the La Nina, expected impacts during January-March 2009 include above average precipitation over Indonesia, according to CPC. During December 2008, negative equatorial sea surface temperature (SST) anomalies strengthened across the central and east central Pacific Ocean.

The subsurface oceanic heat content anomalies (average temperatures in the upper 300m of the ocean) also became increasingly negative as below average temperatures at thermocline depth strengthened in the central and eastern Pacific. Convection remained suppressed near the International Date Line, and became more persistent near Indonesia during December, it said.

Low level easterly winds and upper level westerly winds also strengthened across the equatorial Pacific Ocean. Collectively, these oceanic and atmospheric anomalies reflect the development of La Nina, according to CPC. La Ni?a is characterized by unusually cold ocean temperatures in the Equatorial Pacific, compared to El Ni?

Which is characterized by unusually warm ocean temperatures in the Equatorial Pacific. This El Nino discussion is a consolidated effort of the National Atmospheric and Oceanic Administration (NOAA), NOAA`s National Weather Service, and their funded institutions. Oceanic and atmospheric conditions are updated weekly on the Climate Prediction Center web site.

At least 12 Killed by Floods, Waves in Indonesia

2009-02-03T12:19:00.003Z

Three Indonesians died after huge waves washed them away on a beach on Java island, while nine people were killed in floods and landslides in other parts of Java and Sulawesi, officials said on Sunday. The bodies of three high school students had been found on Parangtritis beach south of the city of Jogjakarta, a rescue official said, while two people were still missing after they were swept away on Saturday while waiting to watch the sunrise.

The beach is a popular tourist area but known for its dangerous currents and big waves. Separately, at least nine people were killed and five others seriously injured after floods and landslides hit East Java and Central Java, as well as South Sulawesi. Landslides and flooding are common during Indonesia's rainy season, often made worse by deforestation that means there is little to prevent flash floods and soil erosion.

Indonesia's Timah Slows Investment on Project Delays

2009-01-30T02:23:00.003Z

Indonesia's PT Timah Tbk (TINS.JK) plans to spend 700 billion rupiah ($62 million) this year to expand its tin chemical plant as well as buying more dredges for off shore mining, its president director said. But Timah, the world's largest integrated tin miner, has delayed some projects this year as demand for tin used in food packaging and soldering of electronic components has fallen, Wachid Usman told reporters on Wednesday.

"We continue some investment plans this year. But we have to delay other investment plans," Wachid said. Last year, the company earmarked spending of 1.4 trillion rupiah.

For this year, the company plans to allocate spending to increase the capacity of its tin chemical plant which currently has a production capacity of 10.000 tonnes a year and had initial investment of 240 billion rupiah, he said.

"The plant will be expanded but we still have to see the market situation first," Wachid said without elaborating. Timah has said it plans to boost output of higher value tin based products to offset falling prices. Tin prices at the London Metal Exchange have fallen around 55 percent from an all time high of $25,500 a tonne hit in last May as the global economic crisis bites.

Indonesia Joins Race to Host 2018, 2022 World Cup

2009-01-30T01:45:00.003Z

Indonesia has joined the race to host the World Cup in 2018 or 2022. The Indonesian football federation (PSSI) officially expressed interest in staging one of the tournaments to FIFA late Tuesday, becoming the sixth potential host to show interest ahead of Monday's deadline. "This seems like only a dream for us now, but we must dare to dream big. Otherwise we would realize nothing," PSSI secretary general Nugroho Besoes said.

England, Japan, Qatar, Russia and a joint Spain and Portugal candidacy have already declared intentions to bid. Other contenders including Australia, a combined (Belgium, Netherlands and Luxembourg) proposal, Canada, China, Mexico and the United States are expected to enter the first stage of a two year selection process before the cutoff.

Though its team is currently No. 144 in the FIFA world rankings, Indonesia fulfills one major requirement of hosting the world's most watched sports event it has a stadium capable of holding at least 80.000 spectators for the opening match and final.

The government owned Bung Karno Stadium in the capital Jakarta has a capacity of 88,000 and staged the 2007 Asian Cup final, when Iraq beat Saudi Arabia 1-0.

"Football is the most popular event in Indonesia, where its television rating beats everything else," said Besoes, adding that joining the race would help speed up the development of players in a country of 235 million people. Indonesia has previously made World Cup history. It became the first Asian nation to play at a World Cup, at the 1938 tournament in France under its colonial name of the Dutch East Indies.

The team lost 6-0 to eventual runner up Hungary in a first round match at Reims. Indonesia was quickly knocked out of qualifying for the 2010 World Cup being played in South Africa. It advanced through the Asian first round when opponent Guam withdrew, then lost 11-1 to Syria in a two legged series in November 2007. FIFA began the process of choosing the 2018 and 2022 World Cup hosts two weeks ago.

It will issue official bid forms next month, which must be returned by March 16. Candidates capable of providing around 12 stadiums each holding at least 40,000 fans can apply for either the 2018 or the 2022 tournament, or for both. "Ten years are enough for us to build, renovate or expand our stadiums to meet the requirement," Besoes said. FIFA said no South American country can apply for either tournament because Brazil is hosting the 2014 edition.

African countries can bid only for the 2022 event because South Africa is hosting next year. The hosts will be chosen by FIFA's 24 man executive committee in December 2010. If successful, Indonesia would be the second World Cup host from Asia. The 2002 tournament was played in Japan and South Korea.

Indonesia to Repatriate 193 Boat Migrants

2009-01-24T09:00:00.002Z

Indonesia will deny political asylum to 193 migrants from Myanmar and Bangladesh who are being held at a navy base after they were found stranded off the country's western coast, the foreign minister said.

Most of the group identified themselves as Rohingya, members of a Muslim ethnic group that fled persecution in Myanmar.

Tens of thousands of Rohingyas live in camps in Bangladesh, where they have been granted refugee status.

But Foreign Minister Hassan Wirajuda said Thursday that the migrants found drifting off Indonesia's Aceh province on Jan. 7 will be refused entry into the country.

Obama's Nominee Defends US Work in Indonesia

2009-01-24T08:52:00.002Z

President Barack Obama's choice to lead 16 U.S. intelligence agencies is defending his efforts to rein in the Indonesian military as it brutally cracked down on civilians in East Timor a decade ago. Retired Adm.

Dennis Blair told lawmakers Thursday at his confirmation hearing that he diligently worked to carry out U.S. efforts to make sure Indonesia stopped violence in East Timor. Blair was head of the U.S. Pacific Command at the time. Blair says he told both military and civilian Indonesian leaders that torture and killing had to stop for the U.S. and Indonesia to have improved ties.

He says "those who say that I was somehow carrying out my own policy or saying things that were not in accordance with American policy are just flat, flat wrong."

Bank Internasional Forecasts Loan Profitability Jump

2009-01-24T08:46:00.002Z

PT Bank Internasional Indonesia, the biggest overseas unit of Malaysia’s largest bank, forecast loan profitability will increase for the first time in three years after the cost of funds declined. The difference between interest earned from loans and the amount paid to depositors will widen to 5.5 percentage points this year, President Director Henry Ho, 54, said in an interview in Jakarta yesterday.

The net interest margin was 5 percentage points in the previous two years. Earnings growth at Bank Internasional, where net income has dropped in 13 of the past 15 quarters, may bolster parent Malayan Banking Bhd.’s effort to be among the top five banks in South and Southeast Asia by 2015. An economy forecast to expand at the slowest pace since 2003 may keep the lender from reaching its target, said Dimas Negoro, an analyst at PT Danareksa Sekuritas.

“Net interest margin may come under pressure,” Jakarta based Negoro said. “There is still some concern among banks that if they lower their deposit rates, people will take their funds elsewhere.”

Indonesia’s central bank has cut its benchmark rate by three quarters of a percentage point in the past two months to revive an economy forecast by the government to expand 5 percent this year after an estimated growth of 6.1 percent in 2008.

Ho, who was appointed as president director in December 2003, will resign from Bank Internasional by the end of February to move back to Temasek Holdings Pte, the previous owner of the Indonesian bank. Maybank hasn’t named Ho’s successor yet. A 15 percent increase in lending and a surge in fees from letting clients transact using automated teller machines may help the Jakarta based bank offset an increase in funds set aside to cover bad loans, boosting profit for the second time in five years, Ho said.

“We feel that we will be able to manage” delinquencies, Ho said. “Provisions will probably increase in line with the deteriorating economy, but increasing provisions doesn’t mean you have lower profitability.” Bank Internasional forecasts an economic expansion of about 3.5 percent this year, Ho said.

Maybank last year spent about $2.22 billion to raise its stake in Bank Internasional to 98 percent to compete with overseas lenders such as HSBC Holdings Plc in Asia’s third most populated nation. The acquisition, Indonesia’s biggest in the banking industry, will help boost profit in three years, the Kuala Lumpur based lender said on March 26. The Malaysian company last year also paid $742 million for 20 percent of Pakistan’s MCB Bank Ltd. and $93 million for a 15 percent stake in Vietnam’s An Binh Bank.

Indonesia Scraps Plans to Tag HIV Patients

2008-12-18T07:27:00.002Z

An Indonesian province beleaguered by a spiraling HIV infection rate scrapped plans to implant microchips in those with full blown AIDS on Tuesday, following strong opposition from government officials, health workers and rights activists.

Papua's parliament agreed to drop a section of the health development bill that supported the tagging of some HIV patients with small computer chips inserted beneath the skin part of extreme efforts to monitor the disease, lawmaker Weinard Watori said.

The provincial parliament will wrap up discussions on other issues in the bill, including measures to fight the spread of HIV, by the end of the week, Watori said.

Indonesia is the world's fourth most populous country and has one of Asia's fastest growing HIV rates, with up to 290,000 infections out of 235 million people, fueled mainly by intravenous drug users and prostitution. But Papua, the country's easternmost and poorest province with a population of about 2 million, has been hardest hit.

Its case rate of almost 61 per 100,000 is 15 times the national average, according to internationally funded research, which blames lack of knowledge about sexually transmitted diseases. Local health workers and AIDS activists had called the tagging plan "abhorrent" and argued the best way to tackle Papua's epidemic was through increased spending on sexual education and condom use. "It's a violation of human rights," Papua's Deputy Governor Alex Hasegem said of the proposal.

Indonesia Hires Barclays, UBS For Debt Plan Source

2008-12-18T07:21:00.002Z

Indonesia has hired Barclays Capital and UBS to set up a global medium term note programs, a source familiar with the deal said on Wednesday.

Under this plan, Indonesia could issue debt via a mix of private and public deals in 2009 and these transactions could be in various currencies, maturities and sizes.

Article controls this month, Jakarta picked seven banks, including Barclays and UBS, as advisers for a funding programs of up to $4 billion next year.

EU Welcomes Indonesian Moved on Air Safety

2008-12-18T07:16:00.003Z

The European Union on Wednesday welcomed Indonesia's adoption of a new aviation law, a sign that the bloc may be moving to end its ban on all Indonesian airlines. Earlier in the day, parliament in Jakarta adopted new legislation imposing tough new safety requirements on commercial air traffic.

"This was one of the elements called for by the International Civil Aviation Organization (ICAO) and is a significant development for the improvement of air safety in Indonesia," a EU statement said.

In June 2007, the bloc banned all aircraft registered in the Southeast Asian nation from flying within European airspace due to safety concerns caused by a spate of crashes and other mishaps.

But ICAO, the Montreal based U.N. aviation safety agency, has since urged the EU to relax its ban, saying that Indonesia has implemented a number of measures to improve air safety. "The European Commission looks forward to discussing the implementation of this new law during its regular dialogue with the Indonesian authorities," the statement said.

Indonesia Passes New Aviation Safety Bill

2008-12-18T06:13:00.003Z

Indonesia's parliament passed a new aviation law to improve air safety, meeting some of the demands of the European Commission which banned Indonesian carriers from its airspace following a string of accidents. Under the new law, Indonesia must set up an independent national commission that will report to the President and carry out investigations into aviation accidents.

Indonesia has suffered a string of deadly air accidents in recent years. The European Commission introduced a ban on Indonesian flights in 2007, urging the authorities to increase inspections of all aircraft. The European Commission welcomed the new law in a statement, calling it a "significant development for the improvement of air safety in Indonesia".

None of Indonesia's airlines fly to Europe, but state carrier Garuda Indonesia has said it wants to start flying to Amsterdam again. The ban affects Indonesia's tourist industry because European travel agents are obliged to warn customers about the risk of flying on Indonesia's domestic flights.

The International Civil Aviation Organisation (ICAO) had identified 121 problems in Indonesia's safety system, including the lack of aircraft surveillance and inability of inspectors to have a plane grounded, and made several recommendations aimed at improving air safety standards. "At least 18 of the ICOA's findings have been answered in this bill," Indonesian Transport Minister Jusman Syafii Djamal told reporters, adding this should pave the way for the European Commission to lift the ban.

Pratibha Arrives in Indonesia

2008-12-01T08:29:00.003Z

The President Pratibha Patil arrived here from Hanoi on Friday on a five days visit to Indonesia to promote ties with a country that is an important member of the Association of Southeast Asian Nations (ASEAN) and with which it shares strong historical ties. She was received at the airport by Mangku Pastika, Governor of Bali.

A joint statement issued by the both countries described the official level discussions held separately with President Nguyen Minh Triet, Prime Minister Nguyen Tan Dung, and general secretary of the Vietnamese Communist Party, Non Duc Manh, as having been held in an atmosphere of “friendship, warmth and close understanding.”

The discussions covered issues of bilateral interest covering the “challenging global and regional state of the economy, booming bilateral trade and the promising trend of Indian investment in Vietnam, cooperation in the vital field of steel production, oil and gas, nuclear energy, lines of credit, information and communications, law enforcement, security, defence, education and cultural cooperation.”

The target for US$ 2 billion set at the 13th session of the Joint Ministerial Commission of India and Vietnam in 2007 in New Delhi has been achieved ahead of schedule, the statement noted, and the leaders expressed the hope that Vietnamese trade deficit against India would be gradually reduced. The President has invited her Vietnamese counterpart to pay a State visit to India.

In view of the seven day State mourning in India announced as a mark of respect to the former Prime Minister V.P. Singh, who passed away on Thursday, the President’s visit will be subdued, with State banquets and cultural programmes organized in honour of the Indian President cancelled, Christy Fernandez, Secretary to President, told the media. The visit however will continue as scheduled.

Indonesia Denies Intelligence Operation in Australia

2008-12-01T08:19:00.002Z

Indonesia has confirmed that two more Papuan asylum seekers who arrived in Cape York two years ago are seeking to return to Papua. But Indonesia's Foreign Ministry denies the repatriation is part of an Indonesian intelligence operation in Australia.

Almost two weeks ago Papuan asylum seekers Yunus Wanggai and his daughter Anike suddenly disappeared from their normal haunts in Melbourne, prompting their family, friends and supporters to report them as missing. Unproven allegations were also made that the two were being coerced into leaving Australia by Indonesian intelligence agents.

The two have been in Canberra and talking to the Indonesian Embassy about returning to Papua. This has now been confirmed by Indonesia's Foreign Ministry spokesman Teuku Faizasyah. "This has been done voluntarily and by that it refutes any allegation that intelligence work has taken place in Australia," he said. He said Yunus Wanggai and his daughter are expected back in Papua in the near future.

Indonesia's Adaro Says 9 Months Net Profit Doubles

2008-12-01T08:11:00.002Z

Indonesia's second largest coal producer, PT Adaro Energy Tbk, on Friday reported a doubling in nine month net profit to 686 billion rupiah (US$56.7 million), citing higher selling prices for its coal.

"The significant increase is mostly due to higher achieved selling prices of coal as well as increased production," Adaro said on a statement.

Adaro, which listed on the Indonesian stock exchange this year, said revenue rose 47 percent to 12.4 trillion rupiah, even though sales volume only increased 9 percent. Indonesia is the world's largest thermal coal exporter and coal miners benefitted from soaring commodity prices earlier in the year.

But some analysts have warned that the global financial crisis might hit energy demand and drive coal prices lower, hurting mining companies. Adaro said that despite difficult weather conditions earlier in the year, production volume rose 6 percent to 28.7 million tonnes. Sales volume, including 1.2 million tonnes of third party coal trading, increased 9 percent to 30.9 million tonnes, Adaro said.

Indonesia and Yemen Ready to Open Direct Flight Service

2008-12-01T08:07:00.002Z

Indonesia and Yemen are ready to be linked by a direct flight service, House of Representatives (DPR) Speaker Agung Laksono said here on Saturday.

Speaking to the press after receiving a Yemeni delegation on the sidelines of the third Asian Parliamentary Assembly (APA) plenary session here Saturday, Laksono said he welcomed the Yemeni government`s decision to open a direct flight service to Jakarta.

Laksono said when the Yemeni government`s decision was implemented, airline flights from Jakarta to Yemen and the other way round would no longer need to make stopovers in Dubai, Abu Dhabi, or Singapore. The House speaker said a direct flight service between Indonesia and Yemen would strengthen and improve their trade and bilateral relations.

The Yemeni delegation at the meeting with Laksono was led by Akram Abdullah Atiyah who appreciated the results of the APA meeting which were to be embodied in a Jakarta Declaration. Atiyah on the occasion also invited the Indonesian House speaker to visit Yemen. Laksono said trade relations between the two countries had yet to be established but their long standing bilateral ties, including inter parliamentary relations through APA, had always been good.

Indonesia Faces With International Terrorists Threat

2008-12-01T07:46:00.002Z

Global and regional terrorists have started to expand their threat to Indonesia, Antara news agency Sunday quoted National Defense Forces (TNI) Chief Gen Djoko Santoso as saying. "We have to admit that the threat of terrorism is already in Indonesia ," Antara news agency quoted the military chief as saying.

The threat in the country could come in the form of physical violence and other acts such as bombing threats conveyed by telephone, he added.

"As we know, terrorist acts have happened in Mumbai, India and in Thailand. We have detected and prevented such acts from happening in Indonesia," he said on Saturday in Blitar, East Java province.

"At a recent Asia Pacific Military Commanders Conference in Bali, we agreed on a common perception in the management of terrorism," he said. "It is said in the law that one of the TNI's tasks is to overcome all forms of terrorism in Indonesia. Of course we cannot do it ourselves and therefore we will continue to coordinate with both the national and regional police," Djoko Santoso said.

In addition, he also asked for the people's active participation in the efforts to combat terrorism in Indonesia. Some cities, including Indonesia's capital city of Jakarta and its resort island Bali, suffered bomb attacks in 2002 and 2004, claiming hundreds of people's lives.

Greenpeace Stops Palm Oil Shipments From Leaving Indonesia

2008-11-12T08:24:00.002Z

Environmental group Greenpeace said Monday it had stopped several palm oil shipments from leaving Indonesia and called for an end to forests and peatlands being destroyed to make way for plantations. The ships were about to leave from Dumai, Indonesia's main oil export port, to Europe.

"Greenpeace activists painted the words "Forest Crime" and "Climate Crime" on the hull of three palm oil tankers and a barge full of rainforest timber," Greenpeace Southeast Asia Forest Campaigner Bustar Maitar told AFP. "

The government and businesses should stop the rapid conversion of forests and peatlands into palm oil plantation in order to combat climate change," Maitar said.

A Greenpeace activist was also chained onto the anchor chain of a ship carrying palm oil owned by the Wilmar group to stop it leaving for the Netherlands. "Deforestation will continue without strong commitment," Maitar said, adding that meeting demand for palm oil was possible without further deforestation. Greenpeace said massive tracts of tropical forests in the easternmost Papua region were being converted for oil palm plantation.

The group has also exposed ongoing forest destruction for timber in Papua and discovered fresh forest clearances in the peatland forests of Riau. The rapid conversion of forests and peatlands for palm oil and pulp plantations is a major driver of deforestation in the country. Forest destruction has made Indonesia the world's third biggest greenhouse gas emitter behind the United States and China.

Indonesia's Adaro Says "Q3 Coal Output Up 6 Percent"

2008-11-12T08:20:00.002Z

Indonesia's second biggest coal company, Adaro Energy said on Monday that production volumes rose 6 percent in the third quarter to reach 28.7 million tonnes for the first nine months of the year.

Combined sales volumes, including sales by third parties, rose 9 percent to 30.9 million tonnes, the company said.

Adaro said it entered into three new long term coal supply contracts with international customers in the third quarter to cover increase production for next year, but was currently not seeking new customers.

Adaro, which is targeting 42 till 45 million tonnes of production next year, said it remained on track in the third quarter to meet this year's target of 38 till 39 million tonnes.

Bank Indonesia "Open to Possibility" Of Cut in Rates

2008-11-12T08:08:00.003Z

Indonesia's central bank is "open" to the possibility of reducing interest rates to boost the economy as global growth slows and inflation eases, Deputy Governor Miranda Goeltom said. Bank Indonesia kept its key rate unchanged at 9.5 percent this month, after six increases since May, amid lower than expected consumer price gains. Policy makers still need to monitor inflationary pressures before making any decisions on borrowing costs, Goeltom in Sao Paulo where she attended a meeting of central bank officials.

Central banks in Asia and around the globe have slashed interest rates and governments are boosting spending as the world battles the threat of a prolonged slowdown. The International Monetary Fund last week predicted the first simultaneous recession in the U.S., Japan and euro region in the post World War II era next year.

"We've already seen that the slowing down of the world economy and demand will eventually have an effect on our growth," Goeltom said.

"While the central bank is still targeting lower inflation for the future, we're not immune to the increasing need of addressing the issues of a future slowing down of productive capacities." Consumer prices in Indonesia increased 11.8 percent from a year earlier in October, after gaining 12.1 percent in September. The central bank expects to keep inflation between 11.5 percent and 12.5 percent this year, and for price gains to be no higher than 7.5 percent in 2009.

"Any Possibility"
Policy makers will consider "going further than only pausing" on interest rates as it did at its most recent meeting, Goeltom said. "If inflationary pressures have started to go down as early indications that we have seen, we are open to any possibility of responding to it timely," she said. "We don't want to be seen as over reactive to the inflation numbers that came out this month because we have to see the longer term picture."

The central bank is also battling a declining currency because of a scarcity of U.S. dollars in the market. The rupiah has dropped 11.3 percent in the past month making it the worst performer among Asia's 10 most traded currencies. It fell 0.8 percent to 11,188 against the dollar at 1:09 p.m. in Jakarta. "I think early in the first quarter of next year will be the right time for Bank Indonesia to cut rates given heavy pressure on the rupiah at the moment," said Destry Damayanti, an economist at PT Mandiri Sekuritas in Jakarta.

Earthquake Hits Sumatra, Indonesia

2008-11-12T07:49:00.002Z

A moderate quake measuring 5.3 on the Richter scale struck Sumatra Island on Tuesday, but with no report of damage and casualty, local meteorology agency said here.

The quake jolted at 08:47 Jakarta time (0146 GMT) with the epicenter at 59 kilometers southwest Bengkulu city, the capital of Bengkulu province and at 27 kilometers in depth, an official of the agency said.

Indonesia sits at a vulnerable zone so called the "Pacific Ring of Fire" where two continental plates, stretching from the Western Hemisphere through Japan and Southeast Asia, meet that cause frequent volcanic movements.

Indonesia Bourse Raises Daily Share Price Limit to 20 Percent

2008-11-01T08:42:00.002Z

Indonesia Stock Exchange said it will increase the upper limit of daily percentage change in share prices to 20 percent from 10 percent starting Friday. However the exchange will maintain a 10 percent downside limit.

The bourse introduced the 10 percent upside and downside limit earlier this month after a global sell off in stock markets around the world pushed down Indonesia Composite Index by more than 20 percent in just three days, prompting the exchange to close the trading for three days. The index as fallen by more than 60 percent so far this year as global investors pulled out from risky assets.

Indonesia's BRI 9 Months Profit Up On Loans, Fees

2008-11-01T08:37:00.002Z

Indonesia's third largest lender, PT Bank Rakyat Indonesia Tbk, reported on Friday a 17 percent rise in its nine months net profit helped by strong loan growth and higher fee based income. The state bank said its net profit for January to September rose to 4.24 trillion rupiah ($398.1 million) compared to 3.62 trillion rupiah a year ago.

The bank, which more than 80 percent of its lending portfolio are aimed at small and medium businesses, said its outstanding loan expanded to 151.46 trillion rupiah ($14.21 billion) as of September from 105.55 trillion a year ago, an increase of around 43 percent.

Helped by commodities boom, Indonesia's banking sector is expected to show loan growth of around 30 percent for the first nine months, spurred by strong demand from the plantation and mining sectors.

But as the central bank gradually increased its benchmark interest rate BIPG this year to control inflation, analysts are expecting loan growth to slow down towards the year end. The bank said its net interest income rose by 18.7 percent to 14.7 trillion rupiah. However BRI, which has a market capitalisation of $3.3 billion, said its net interest margin fell to 10.61 percent from 11.07 percent. The margin was still higher compared to its main rivals which normally report a margin of around 6 percent.

The results came before the Indonesia Stock Exchange opens. On Thursday BRI share price ended 9.43 percent higher to 2,900 rupiah each, outpacing a 5.4 percent rise in the composite index .JKSE and 6.4 percent jump in the financial sub index.

Indonesia Passes Tough New Anti Porn Laws

2008-11-01T08:29:00.003Z

After years of debate, Indonesia's Parliament has passed a far reaching anti porn law which empowers authorities to jail people for any sexually suggestive performance. Protests against Indonesia's controversial Pornography Law had brought thousands into the streets of Bali. But as the bill was suddenly rushed through Parliament in Jakarta yesterday, the few hundred protesters present were Islamic conservatives cheering on the bill's passage into law.

The law may have been most fiercely backed by Islamic parties but it has also been supported by the Government of President Susilo Bambang Yudhoyono which has proven itself fearful of being on the wrong side of Indonesia's Muslim hardliners. It is quite a law. Possessing or downloading porn can land you in jail for four years and a sexually suggestive performance can attract a 12 years sentence.

Eva Sundari is a lawmaker from the Democratic Party of Struggle. She takes issue with law's definitions of "bodily movements" and walked out of Indonesia's Parliament in protest.

"It includes the body movements which of course will be difficult to determine what kind, and how far the movements go to imply sexual arousal," she said. The anti porn law also invites members of the public to play a role in enforcing it something which critics say will give legal licence to already unruly groups of Islamic vigilantes.

So while pornographers can now be locked up in Indonesia, convicted mass murdering terrorists like Amrozi, Mukhlas and Imam Samudra are still permitted to incite murder and revenge even as their date with a firing squad draws very near. The bombers have managed to smuggle out of prison what may be their last angry letters to the world. They are dated October 22 and were posted on Islamic websites yesterday.

Mukhlas, or Ali Guhfron as he is also known, implores fellow Muslims to commit to Jihad and use swords and weapons to destroy infidels and those who do not live in Islamic states. He says he does not fear the death penalty because he will become a martyr following God's path. Imam Samudra rails against the Indonesian officials organizing his execution and asks why do they not understand that America is drawing its last breath?

Writing occasionally in English, Samudra says his enemies will not get away with executing him and will get a "Smack Down!" from the Mujahadeen. He ends by saying not a single drop of Muslim blood is free. Amrozi's letter of course condemns infidels too, but it is barely literate by comparison. The International Crisis Group's terrorism expert Sidney Jones says she is amazed that, even at this late stage, the bombers are still allowed to incite violence from their cells.

"I just think that if there's an increase in the security threat as the result of the executions, the Government it at least in part to blame for allowing these three men access to the media over and over and over again issuing threats and encouraging their supporters to take revenge and so on," she said. "It's unbelievable to me that this kind of activity could have gone ahead without any attempt to restrict it."

Property Investment a Solid Bet It Provides a Hedge Against Inflation Caused by Economic Slowdown

2008-11-01T08:22:00.004Z

The deepening financial crisis is making property investment a more attractive option, Fiabci vice president for marketing and networking Michael Geh said. He said there was going to be a shift of investment money in the coming years from the traditional financial products like bank deposits to property, which was deemed more solid. “Income bearing properties is the hedge against inflation that comes with an economic downturn,” he added.

Geh was speaking at a one day forum by MIEA Penang chapter held in conjunction with the official visit of a 50-member delegation from North Sumatra Real Estate Indonesia (REI) headed by its chairman Rusmin Lawin to Penang on Saturday. Penang chapter chairman Danny Ooi said MIEA was embarking on an initiative to assist its members to be actively involved in international marketing to tide over the impending difficult times brought about by the global economic slowdown.

“We want to encourage our members to be involved in promoting international marketing. It is our ability to adapt to the challenges ahead that is crucial to help us remain competitive,” he said.

Ooi said the REI inaugural visit would enhance on the working ties and cooperation established under the Indonesia, Malaysia, Thailand Growth Triangle (IMT-GT) and upgrade the quality of professional services provided by estate agents in their respective countries.

Both MIEA and REI signed a Memorandum of Understanding to explore areas of cooperation and collaboration and foster inter regional ties. Ooi signed on behalf of MIEA Penang chapter while Rusmin for REI.

The signing was witnessed by MIEA president Soma Sundaram, Penang Fiabci chairman Datuk Khor Teng Tong, REI secretary Jafar S. Ritonga and REHDA Penang chairman Datuk Jerry Chan. Rusmin, in his remarks, stressed on the importance of networking and exploring other markets during difficult times. He said the Indonesians were particularly keen to learn from the success of Malaysia My Second Home or MM2H programme and Penang as the top choice destination. “We are interested in how Penang is promoted to the international market.

“We also hope for some business matching and sharing of experience from this meeting,” Rusmin said, when presenting on the topic "New trend and opportunities in North Sumatera". Later, delegation members were briefed during their visits to several project sites such as the Paragon by Hunza, Tanjung Sri Pinang (E&O) and Hillside Homes (Asia Green).

On a separate matter, Ooi advised house buyers to be wary of illegal estate agents. He said there had been many instances of buyers being cheated of their deposits and receiving substandard services. He said it was an offence to act as an illegal estate agent without accreditation and punishable with a three years jail sentence, or RM25,000 fine or both, and a further fine of RM500 each day levied for subsequent offences.

Indonesia Asks Qtel To Lift Indosat Tender Offer Price

2008-10-31T04:11:00.003Z

Indonesia's capital market regulator said on Thursday Qatar Telecom (Qtel) QTEL.QA must buy the rest of PT Indosat Tbk shares at the same price they paid to Singapore's ST Telemedia. Qtel bought a stake in Indosat, the country's second largest mobile phone operator, from Singapore Technology Telemedia for $1.35 billion in June, increasing its ownership of the company to 40.8 percent from around 10 percent.

Qtel is in the process of holding a tender offer for the rest of Indosat's shares, and has said it had offered to pay 6,416 rupiah ($0.6) for each Indosat share, lower than 7,388 rupiah they paid to ST Telemedia.

"The price must be the same as the previous deal," Fuad Rahmany, the chairman of the market regulator, Bapepam, told Reuters in a mobile text message.

Indonesia's mobile phone industry has seen strong subscriber growth in recent years and the number of mobile phone customers is expected to top 120 million by the end of 2008 from around 90 million last year. Indonesia's communications minister said on Monday Qtel cannot control more than 65 percent of Indosat. The decision came as Qtel is preparing to hold the tender offer, while awaiting clarification from the government on the foreign ownership rules.

Indonesia's Arpeni Reports 25% Increase in Income and Profit

2008-10-28T06:49:00.002Z

Publicly traded cargo shipping company PT Arpeni Pratama Ocean Line (Apol) estimated its income and net profit rose 25 per cent year on year in the first nine months of this year.

The company reported Rp 1.11 trillion (US$ 115 million) in income and Rp 149.1 billion in net profit in the first nine months of last year. Company President Oentoro Surya said long term contracts for coal transport contributed largely to the improved performance.

The company has big contracts for the transport of coal from Indonesia to a number of countries in Asia, he told the newspaper Bisnis Indonesia. He said currently negotiations are in progress on new contract for the transport of coal to China and Japan.

Jetstar's Bali Flight Full Despite Terror Warnings

2008-10-28T06:28:00.003Z

Jetstar's inaugural Perth to Bali flight was packed today despite an updated warning on travel to the Indonesian island. The Department of Foreign Affairs and Trade updated its travel advice for Indonesia on Friday, warning the imminent executions of the Bali bombers would compound an already significant terrorism risk.

The update followed Friday's announcement by Indonesia that the three Islamic militants would be put before a firing squad in early November for their roles in the 2002 Bali nightclub bombings. Jetstar corporate relations general manager Simon Westaway said the travel warning had been in place for many years, but Bali remained a popular destination for Australians.

"The level of warning isn't changed but they did reissue an advisory and we will obviously be continuing to monitor the situation," Mr Westaway said.

"The important point to make is the existing warning has been in place for Bali for many years now." The warning had not deterred travelers on the first flight on the Jetstar service from Perth.

"I'm just observing here at the airport this morning, we've got a full flight load of people going up to Denpasar and from our perspective it's business as usual," Mr Westaway said. Bali has regained its popularity as a holiday destination since the Bali bombings in 2002 and 2005.

Mr Westaway said the market had returned solidly in the last 18 months and Jetstar had added additional capacity out of Sydney and Melbourne in response. The Perth service will fly three weekly initially before being boosted to four times a week in December, Mr Westaway said.

"Bali has returned as a destination for Australians, it has in many ways always been Australia's leading international playground in terms of visitation," he said. Foreign Minister Stephen Smith yesterday advised Australians to check official travel advice before travelling to Bali.

Vice President M.Jusuf Kalla Closes Asian Beach Games in Bali

2008-10-28T06:21:00.002Z

Indonesian Vice President Jusuf Kalla officially closed the first Asian Beach Games (ABG) 2008 on Sunday (Oct 26) night in Garuda Wisnu Kencana, Nusa Dua, Bali. Jusuf Kalla on the occasion expressed his feeling of proud of the struggle showed by athletes from 45 Asian countries. The ABG was opened by President Susilo Bambang Yudhoyono on October 18.

The Asian Beach Games was participated in by around 10,000 athletes from 45 countries including China, Japan, Afghanistan, Laos and Macau. "I am grateful to all athletes of the 45 countries who have strived for your all countries," Kalla said. The vice president also expressed his appreciation to Bali provincial administration and its people, who had fully supported the first ABG event.

"I also expressed my high appreciation to the Olympic Council of Asia (OCA) which has entrusted Indonesia to organize the ABG. We hope the second ABG tournament which will be held in Oman in 2010 can run well," said Kalla, who was among ohter things accompanied by the ABG steering committee chairman, Adhyaksa Dault, OCA vice president Timothy Fox and organizing committee chairwoman Rita Subowo.

Jusuf Kalla was also proud of what has been achieved by Indonesian contingent with their success as an overall champion, which grabbed 23 gold medals, eight silver and 20 bronze medals. Thailand appeared as runner up with ten gold medals, 17 silvers and ten bronze medals. Earlier, OCA vice president Timothy Fox, who represented OCA president Sheikh Ahmad A Fahad Al Sabah in his closing remarks also highly appreciated on what Indonesia had conducted as host of the international sports event.

The ABG closing ceremony was also highlighted by several attractions like dancing performances. Prior to the arrival of the vice president, Saharadja band from contemporary music from Bali showed musical entertainment at Lotus Pond stage. The event also featuring several Indonesian artists including senior female artist Titiek Puspa. Oman will be the 2nd host the ABG in 2010.

There were 17 beach sport branches in the sport event such as beach volleyball, dragon boat racing, body building, beach soccer, beach handball, beach pencaksilat (traditional martial art), beach wrestling, jet skiing, marathon swimming, para gliding, sailing, triathlon, windsurfing, woodball and sepak takraw.

Microplants Help Combat Shortage

2008-10-28T06:15:00.003Z

Micro hydroelectric plants have been effective at enabling local communities to generate their own power, at a time when PT PLN faces challenges in providing an adequate supply of electricity to the public. Two such plants have built under the government sponsored National Mandiri Community Empowerment Program (PNPM), one in Mamulusan and the other in Balayon, two villages on Peling Island in Central Sulawesi.

The year 2003 could be seen as a turning point for residents of Mamulusan, with PNPM initiating a community participation scheme that year through its district development program (PPK) in Liang district. PNPMchaired at the central government level by Coordinating Minister for the People's Welfare Aburizal Bakriewas designed to alleviate poverty through community empowerment, explained Ikhwan Maulana, information, education and communication specialist for PNPM Mandiri.

"Through such empowerment, the community is expected to play a role as a participant in development, solving their own problems without assistance from other parties," he said. Under the participatory scheme, local communities are directly involved in a range of activities, including proposals for village development projects, without intervention or recommendations from government institutions, Ikhwan added.

Like other villages undertaking their first PPK program, residents of Mamulusan appear to have participated without the certainty their goals would be realized.

Nevertheless, the common need to work together to provide themselves with electricity drove them to propose a project in 1998, as part of the community empowerment program. When their first proposal was turned downas they had predicted at an inter village meeting in Liang district, community members were disappointed.

However, witnessing the success of programs in other villages, Mamulusan residents began working together to realize their aims. The following year, at a similar meeting, they were pleased to hear their electricity generation project was approved, with Rp 151 million (around US$16,000) in funds awarded. Construction of the modest hydroelectric plants was not without its challenges, as technical assistance in the Banggai Islands regency was hard to come by, with project members visiting a number of government institutions, to no avail.

With the eventual help of a PNPM Mandiri consultant, the community was able to begin designing the plants. "The local residents later went to the river and began manually building a dam. Men and women worked side by side collecting stones and gravel around the project site," Ikhwan said. To reach their goal of providing light for the village, women worked together to carry away the material using bois baskets worn on their backs, he added.

In the construction phase, the local community relied on an array of existing capacities, from skilled laborers and their assistants to those removing stones. In the end, all the building was done by community members themselves, including the installation of cable networks. With construction complete, a new challenge emerged, namely the need for turbines and other electrical instruments unavailable in the village at the time.

Through consensus, the community decided to buy the equipment from a larger town, far from the village and accessible only by sea. Witnessing Mamulusan residents' success in building the power plants, residents of neighboring Basosol proposed a similar project, undertaken during the district's financing program for 2004/2005. They received Rp 139.6 million in funds for the project.

Such success in tapping abundant water resources for power generation has inspired residents in other villages, including Balayon, whose proposal for hydroelectric plants was approved in 2006, with Rp 182.3 million awarded for the project. In addition to providing themselves with electricity, local residents benefited from the program through a boost in local employment afforded by the plant's construction.

Thus far, five micro hydroelectric plants have been built in Central Sulawesi three on the Banggai Islands, one in Tiniji, and another in the Banggai regency's Ondo-Ondolu. Another community based plant project undertaken in Nipah in the Banggai regency at a cost of Rp 241 million will soon complete installation of a cable network designed to distribute electricity to the village's 1,025 residents.

Indonesia Getting Fatburger Restaurants

2008-10-23T09:05:00.002+01:00

Portland based Fog Cutter (OTCBB : FCCG) announced Monday it has a multi unit restaurant development agreement allowing PT. Global Food Indonesia to develop and operate Fatburger hamburger restaurants.

PT. Global is initially seeking locations in Jakarta, but also expects to open restaurants in Surabaya and Bali. Fatburger’s current international operations include restaurants in Canada and China, with additional agreements to open locations in Dubai, Saudi Arabia and Kuwait.

The company expects to open its first restaurants in Dubai and Hong Kong before year end. Santa Monica, Calif based Fatburger has 92 restaurants in Arizona, California, Colorado, Florida, Georgia, Michigan, Nebraska, Nevada, New Jersey, New York, Ohio, Illinois, Texas, Washington, Canada and Macao.

Beef Industry Targets Indonesia

2008-10-23T08:59:00.002+01:00

The nation's beef industry says a low Australian dollar should help to protect the sector from some of the fallout from the global financial crisis.

Meat and Livestock Australia says a new analysis shows rapid growth in the market over the last four years, with almost 550,000 live cattle exported last year and 46,000 tonnes of boxed beef.

And the industry body says it is expecting live cattle and boxed beef exports to Indonesia to continue to grow.

Chairman Don Heatley says with Indonesia's massive population forecast to grow, the market is offering valuable opportunities for cattle producers. "You've got a market like Indonesia now which is about third behind Japan and the US in the combined area of live export and boxed beef, so this is a major market and it is right on our doorstep," he said.

"From an industry perspective, we need to guard this jealously and support it." Mr Heatley says the world financial turmoil will have some impact, but market growth is still expected. "Now that you've got a dollar headed into the 60s territory, this can only be beneficial for the overall trade," he said. "It's solid, it's going to have some impacts on consumer spending, but at the end of the day the expectation is that the Indonesian economy is still expected to grow by about 5 per cent, so I think it's in pretty good shape."

Asian Beach Games Reviews

2008-10-23T08:49:00.003+01:00

Some athletes competing in the Asian Beach Games might not have as much to do over the next two years, as the Muscat Asian Beach Games Organizing Committee (MABGOC) has decided to trim the number of sports for the 2010 event in Oman. In an interview with The Jakarta Post on Tuesday, MABGOC director Habib A. Macki said they had decided to include only 11 sports, compared with Bali's 19.

"We are looking at different things. Here in Bali, there are many hotels. You can accommodate many athletes," he said on the sidelines of the general assembly of the Olympic Committee of Asia (OCA) at the Westin Hotel in Nusa Dua. "We don't want to build that many hotels because there will be not much use. We must think about the future. Therefore, we will concentrate on only 11 sports and a certain number of athletes."

Even though only 11 sports will be included at the event in Oman, Muscat expects to be able to host a greater number of athletes in its forthcoming Olympic village which, Macki said, would accommodate 3,000 athletes.

Around 1,600 athletes from 45 Asian countries are participating in the Bali Games. Macki presented the masterplan for the Muscat Games before representatives of the 45 National Olympic Committee members under OCA.

The Olympic village, which began construction this year, will be located near the coastal town of Mussanah, an hour's drive from Muscat. The town's legacy from hosting the Asian Beach Games will include world-class sporting facilities, a three star hotel and meeting and conference facilities. The village is expected to become a magnet for the country's future development of sports.

"We will host these beach games in one village. It will be home to all the sporting competitions, but some events may take place somewhere outside the village because this space will not be sufficient," Macki said. "Athletes and officials will be in one village. The media will not be far away from there, just 10 minutes' drive. And NOC (National Olympic Committee) guests will be based in a different place."

He added that MABGOC was looking forward to hosting the Games, because of its expected benefits. "There are certain things, most importantly tourism. We are looking to bringing in more tourists,"he said. "Second, for young people athletes. You (Games participants) have so many young athletes. They are very famous in our country. The Games will give them a chance to (display their skills). "Economically, it's very important. Sport is about promotion.

We are building infrastructure that we can use again in the future, such as a sport academy," he said, adding that organizers had allocated a budget of US$200 million for the Games. The Omani entourage also intends to learn from the organization of the first Asian Beach Games.

"We are learning a lot from Bali because it's the first ever Beach Games. Being the first Games, always difficult". I told Madam Rita (Subowo) the other day. I said `Thanks, you are the first and we are the second, so we can learn from you',"Macki said. "We have 45 people here to learn, about various departments such as venues. Everything. We want to learn something from Bali and take it with us."

Indonesia's Gold Streak in Dragon Boat Halted

2008-10-21T08:53:00.002+01:00

A change in strategy gave Myanmar the upper hand over Indonesia in the men's 500 meters of the dragon boat competition at the Suwung Water Reservoir on Monday. Myanmar beat Indonesia by almost two boat lengths to end the host's gold streak. Indonesia did not completely lose their victorious euphoria, with its women's 500 meter team upsetting China again for the gold.

Tuesday will offer the last two gold medals in the men's and women's 250 meters. Myanmar, which is only sending a men's team, is looking for another spoil. Each team consists of 22 athletes made up of 20 paddlers, a drummer and a helmsman. "We already won today and hopefully will make it again in the 250 meters, "Myanmar official Pe Win told The Jakarta Post. Myanmar adjusted their strategy prior to the 500 meter race to adapt to theinternational standard"lanes.

"We will use the same strategy as today,"Pe Win said. After Sunday's defeat the team changed strategy by trying to pull right from the start, he said.

"The lane is too narrow and water level is not too deep.The international standard is at least 13.5 meters for the lane's width, while water depth must be 3 meters. Here, the depth is maybe 1.7 meters and the lane's width is less than 10 meters,"he said.

"In such conditions, an attempt to catch up opponents will need extra energy because the water does not give much power. And when two boats are close to each other, the trailing boat will be impacted by the waves from the leading boat." Although the facilities are below international standards, Pe Win said he had no complaints.

"This is the first beach games and we are still doing our best. Moreover, everyone faces the same conditions." Monday's race, which saw Myanmar manage to make a reversal from its overnight flop, was the latest round of rivalries between the two countries. Myanmar topped Indonesia in their second meeting in a time of 1:53.23.

Indonesia notched 1:59.00 with the Philippines in distant third at 2:11.16. Indonesian skipper Didin Rusdiana hailed Myanmar's comeback fight and attributed it to their remarkable acceleration from the start. "We were actually in front until 200 meters. Entering 300 meters, they caught us," Didin said. "We dug in down deep, but they dug deeper.We were slowed by their waves asthey cruised ahead."

Indonesia beat China in the women's 500 meters, which was staged in two rounds to decide the winner. In both rounds Indonesia was ahead, with a time of 2:24.55 against 2:28.13 in the first round and 2:25.49 against 2:29.78 in the second. Indonesin team manager Budiman acknowledged Myanmar's superiority in the 500 meters.

"Myanmar is strong in the men's 500 meters. They are better and more experienced than us at short races,"he said, adding that the host country's strength was endurance which made them perform better over longer distances.

Dutch Made Corvette For Indonesian Navy Sails To Indonesia

2008-10-21T08:46:00.003+01:00

A Sigma class Corvette III built in the Netherlands for the Indonesian Navy is scheduled to sail to Indonesia on Saturday (Oct. 18), a Navy spokesman said. The corvette was officially delivered to the Indonesian Navy at a ceremony at the Schelde shipbuilding yard in Vlissingen, the Netherlands, recently.

The Indonesian Navy was at the ceremony represented by Rear Admiral Lilik Supramono, commander of the Indonesian Navy`s Eastern Fleet, according to Commodore Iskandar Sitompul, spokesman of the Indonesian Naval Headquarters, who is now in the Netherlands, in a phone interview with ANTARA.

"It`s expected the corvette baptized KRI Iskandar Muda will arrive in Indonesia on December 2, 2008, and take part activities to mark the Navy`s Anniversary on December 5," he said. Indonesia had ordered four missile equipped corvettes from the Schelde naval shipyard in the Netherlands in January 2004. The first ship arrived in August last year, the second early this year, while the fourth ship is expected to arrive mid 2009.

The first and second Sigma class corvettes were named respectively KRI Diponegoro and KRI Hasanuddin during the visit of Defense Minister Juwono Sudarsono and Naval Chief of Staff Admiral Slamet Soebijanto in the Netherlands on September 14-18, 2006. The third Sigma-class corvette, KRI Sultan Iskandar Muda, was baptized by Commander of the Indonesian Defense Force (TNI) Marshal Djoko Suyanto in the Netherlands.

While 34% Of Jakarta’s Transvestites Are HIV Positive

2008-10-21T08:40:00.002+01:00

Thirty four per cent of transvestites in this city are infected with HIV, a survey has revealed. According to the Biology and Behaviour Survey (STBP), the number of HIV infection among the transvestite community in Jakarta has steadily risen since 1995, when only 0.3% was reportedly HIV positive.

Indonesia’s health ministry reported that there were 20,960 to 25,300 transvestites in the country in 2006. “These findings are significant as the numbers are among the highest in Asia in the last few years,” Tjandra Yoga Aditama, the director for disease control and environmental health, said.

The 2007 STBP survey also revealed that the majority of transvestites were sex workers, many of whom were also listed as being in stable relationships with non-sex worker males.

Tjandra added that condom usage has proven inconsequential in preventing the spread of the disease within the transvestite community and that more members have received counselling and HIV testing offers in recent years.

Indonesia Grounds Four Airlines

2008-10-17T08:28:00.002+01:00

Indonesia has grounded four airlines and given them three months to improve safety standards or face a ban, a transport ministry spokesman said today. A safety audit found airlines Pura Wisata Baruna, Sampoerna Air Nusantara, Dabi Air Nusantara and Atlas Deltasatya failed to meet minimum standards in several safety categories, spokesman Bambang Ervan said.

The airlines have been moved into the transport ministry's bottom safety ranking and have had their Air Operator's Certificates (AOC) suspended with effect from October 7, Mr Ervan said.

"They could not comply with the requirements and safety standards,'' he said. Four out of five airlines that had their AOCs suspended in July have also been allowed to return to the skies after improving their safety standards, Mr Ervan said.

"But we are still closely monitoring them to ensure they continue to comply,'' Mr Ervan said. The fifth airline suspended from flying in July, Helizona, failed to meet its three month deadline and has had its AOC revoked. The airline now has six months to fix standards before being deregistered as a business. Indonesia, an archipelago nation which relies on air routes, has one of the world's worst air safety records.

Bank Indonesia Moves To Boost Currency

2008-10-17T08:22:00.002+01:00

Indonesia's central bank has unveiled new measures to ease downward pressure on the rupiah, after the national currency fell to its lowest level in three years last week.

Bank Indonesia will extend the maximum period for foreign exchange swaps to one month, up from one week. The bank's governor, Boediono, says it will reduce the amount of foreign exchange reserves that commercial banks must hold in the central bank to one percent of total foreign currency deposits, down from an earlier figure of three percent.

He says these new policies are aimed at ensuring the supply of dollars in the domestic market.

Hopes Crisis Will Boost Indonesia Tourism

2008-10-17T08:03:00.003+01:00

Indonesia's tourism minister is hoping the global financial crisis will boost the tropical country's battered tourism industry as people need to "relieve the stress", a report said Tuesday. "The crisis is stressing so many people out.

They need to relax and relieve the stress," Jero Wacik was quoted as saying by The Jakarta Post daily. "That's why I'm optimistic the number of foreign tourists visiting Indonesia will increase."

Indonesia's tourism industry has been hit by the deadly bombings on the holiday island of Bali in 2002 and 2005, bird flu outbreaks and natural disasters such as the 2004 Asian tsunami.

Despite it all, Jakarta declared 2008 "Visit Indonesia Year" and set a target of seven million tourist arrivals by the end of the year in a bid to compete with nearby hotspots such as Thailand and Malaysia. But Wacik predicted in July that Indonesia would only attract 6.3-6.4 million arrivals based on the 3.1 million tourists who visited in the first half of the year, the state Antara news agency reported.

Indonesian Basketball Team Tours Western Australia

2008-10-17T07:55:00.002+01:00

Indonesian basketball player William Tjong says he's surprised by Perth's road rules and sports facilities. He's one of 24 students from East Java's high school basketball competition, the Deteksi Basketball League, touring Western Australia.

The DPL All Stars will play local high schools, and train with the Perth NBL and WNBL sides, the Wildcats and Lynx. Tjong says the sport would develop faster in Indonesia if they had as many training courts and balls.

"Australia has alot of facilities like the ball, the gym, yes the ball and the gym," Tjong said. Western Australia has a sister state relationship with East Java for trade and sport. Basketball Western Australia is negotiating a return trip for next year.

Indonesia Remembers 2002 Bali Bombing

2008-10-16T03:09:00.002+01:00

Survivors, relatives of the victims and government officials on Sunday marked the sixth anniversary of Bali bombings by Islamic extremists. The attack, blamed on the militant Jemaah Islamiyah network linked to Al-Qaeda, claimed the lives of 202 people from 22 countries. Australia, which for years saw Bali as its playground, had the most victims, with 88.

Australian ambassador Bill Farmer read a statement from Prime Minister Kevin Rudd during a ceremony attended by some 100 people at the Australian consulate on the resort island. "The 12 October 2002 tragedy shocked Australia. For those who lost loved ones, life will never be the same," Rudd said in a statement.

"We think of the families and friends of the victims. Our thoughts and sympathies will always be with them," he added.

Tearful mourners took turns placing bouquets of flowers at a wooden cross memorial built by victims' families at the Australian consulate in the Balinese capital Denpasar. Rudd praised Indonesia for the crackdown it carried out in the wake of the worst terror attack in the region. "We can be proud that the partnership between Indonesia and Australia is the strongest it has ever been," he said.

Farmer added that it was hoped terrorists would continue to be brought to justice. The anniversary was held amid a promise from the Indonesian government that the three key bombers Amrozi, Imam Samudra and Ali Ghufron would be executed by the end of the year. Indonesian prosecutors had earlier put plans on hold to execute the bombers before the Muslim holy month of Ramadan on September, citing bureaucratic delays.

The bombers, who have shown no regret for the attacks, promised last week "retribution" if they were executed. "The people who will execute us, if they do this execution they will be cursed by God," Mukhlas told reporters at the island prison off southern Java where they are being held.

Indonesia Adopts Measures To Offset Impact Of Global Market Crisis

2008-10-16T02:58:00.003+01:00

Indonesia, the biggest Southeast Asia economy, has adopted a series of measures to offset the impact of the global market crisis. In a bid restore the confidence in the stock market, the country's capital market watchdog, or Bapepam, plans to relax its regulation and allows listed firms to buy back shares without shareholder approval, the acting chairman of Bapepam Darmin Nasution has said.

Under the current rules, the listed firms must seek shareholder approval for a buyback and an extraordinary meeting must be notified one month in advance.

The stock market has suspended trading since Wednesday after the Jakarta Composite Index slumped to more than 10 percent, then skidded to more than 20 percent this week, causing panic selling, amid the plunge of global stock market in the United States, Europe and Asia.

The listed state owned companies have a total market value of more than 30 billion U.S. dollars, or about 30 percent of the total market capitalization in the Indonesia stock exchange. A legal action has also been taken to protect the market from speculation, as the president asked the Indonesia's Capital Market and Financial Institutions Supervisory Agency and the stock exchange to jointly protect the exchange market and to bring those allegedly involve in act which could be categorized as criminal to justice.

The country's central bank on Tuesday for the six time this year raised its benchmark interest rate by 25 basis points to 9.5 percent to slow inflation. Indonesia has revised down its economic growth target from 6.4 percent to 6 percent.

To achieve the 6 percent economic growth target, the country would boost export and explore domestic market, Indonesian Trade Minister Mari Elka Pangestu said. In a bid to boost the real estate sector, the government plans to accelerate budget disbursement for development projects in the last three months of 2008.

Indonesia's Government May Issue Decree To Boost Confidence

2008-10-16T02:44:00.003+01:00

The Indonesian government may soon issue a government decree to help boost investor confidence in local assets amid the crisis in global financial markets. The regulation in lieu of law, known as a "perpu", "is being finalized to be submitted to parliament within days for consultation, and to be then issued,'' Miranda Goeltom, senior deputy governor at Bank Indonesia, said last night, adding that the regulations will help the central bank provide liquidity support.

The government may also issue similar rules to relax criteria on collateral used in bank loans, she said. The Indonesian government is trying to boost investor confidence after the local stock benchmark index had its biggest three days loss in 20 years before trading was suspended on Oct. 8, and the rupiah touched the lowest since November 2005 against the dollar yesterday on concern the global financial crisis will worsen and damp growth in Southeast Asia's largest economy.

"The government must move fast to restore confidence it can't afford to hesitate," said Prayoga Triyono, a fund manager at PT Henan Putihrai Asset Management.

"It would be better if they could issue the regulations as soon as Monday," as trading is expected to resume Oct. 13.

The government and Bank Indonesia need the regulations to take actions to bolster confidence and prevent worsening perceptions of domestic assets and of the economy, Finance Minister Sri Mulyani Indrawati said yesterday, after consulting with parliamentary leaders. The government may also issue a regulation in lieu of law for the deposit guarantee agency, the minister said.

"It's a bit too late, but it needs to be done," Drajad Wibowo, a member of a parliamentary commission on financial affairs, said today in a text message. "We will deliberate over the regulations to become laws in a few months."

Indonesia To Fight Against Illegal Goods Distribution

2008-10-15T03:16:00.002+01:00

The Indonesian government will setup a special task force to prevent illegal goods distribution and protect local products to make them able to compete in the domestic market, a senior official said here on Friday. "Our staff will determine consumer goods which may be imported with regard to prioritizing use of domestic products.

Control of entry points which are potential to be used for sending in illegal products will be tightened," Antara news agency quoted the director general of domestic trade, Subagyo, as saying.

He said increased supervision on imported goods and distribution of consumer goods at home had to be done to maintain competitiveness of the local products in the face of possible flows of imported goods as a result of diversion of exports following current global crisis.

The director of supervision of goods and services distribution, Syahrul Sampurna Jaya, said the task force would have members from various offices concerned. He said he hoped the task force would make coordination among the offices concerned on the supervision of goods distribution more effective. "Similar teams will also be established in the regions," he said.

"The customs office has said it would close 47 ports in Batam and only two ports will be allowed for importing. They are also tightening supervision of private ports," he said. "We will also increase allocation of funds for the supervision of goods distribution to make us able to conduct more field inspections," he said.

Indonesian Volcano Erupts, Spews Flame and Smoke

2008-10-15T03:01:00.003+01:00

A volcano in central Indonesia erupted Monday, shooting clouds of smoke and flames into the night sky. Indonesia's volcanology center said Mount Soputan, roughly 1,350 miles (2,160 kilometers) northeast of capital Jakarta on Sulawesi island, billowed smoke plumes as high as 3,200 feet (one kilometer).

The nearest villages are five miles (eight kilometers) from the crater's mouth, well out of the danger zone, the agency said on its Web site.

Although no evacuations were ordered, people were warned to stay at a safe distance because it might spew lava. Indonesia, a tropical archipelago straddling a major fault line known as the "Pacific Ring of Fire," has more active volcanoes than any other nation. The 3,280 foot (1,780 meters) Mount Soputan has been one of the most active.

"Lost" Deer Rediscovered in Indonesia

2008-10-15T02:53:00.003+01:00

A "lost" type of deer has been found on a remote mountainside in Indonesia's Sumatra island 80 years after the last confirmed sighting, experts said Friday.

The Sumatran muntjac, about the size of a large dog, was photographed and rescued from a hunter's snare 6,400 feet high in mountains of the Kerinci-Seblat National Park.

The species was originally discovered in 1914 but had not been seen since 1930, Flora & Fauna International, whose experts found the deer along with park officials, said in a statement. Two more of the deer were later photographed elsewhere in the park. The snared deer was photographed in 2002 but only recognized as a Sumatran muntjac this year, in a 2008 international "Red List" of endangered species, after scientists confirmed that it was a different species from the related red muntjac.

Indonesia Open Moves To Bali

2008-10-15T02:49:00.002+01:00

The Indonesia Open will move from the capital Jakarta to the paradise island of Bali in 2009. The tournament will take place at the New Kuta Golf Resort from February 26 to March 1 and boast an increased prize fund of US dollars 1.25 million.

The 7,500 yard, par 72 layout, which overlooks the stunning 'Dream Land' Balangan Beach on the Indian Ocean, was designed by Golf Plan, USA (Ronald Fream, David Dale and Kevin Ramsey) and is the first links style course in Indonesia.

SBY Says Indonesia`s Financial System Working Well For Now

2008-10-14T09:15:00.003+01:00

President Susilo Bambang Yudhoyono said here on Thursday that the country`s financial system had been working well until now. "The system has been and is working. We have not only monitored and anticipated, but also responded apropriately and controlled the situation well and the situation is now well under control. There have indeed been dynamics in the capital market but it also happens across the world," he said at a press conference at his office.

The president said the government had taken a lesson and experienced from the monetary crisis hitting the country 10 years ago. "We are prioritizing the protection of the people, the grassroot and will assure that their need for food, health care and education will not be hurt," he said.

He said the government had already set priorities and assured that the government expenditures according to the revised 2008 national budget would be for stimulating growth and social safety net programs.

He said the government would assure that the real sector would continue to move in spite of current global financial crisis. "Therefore in the past three days I continued communicating with the business community so that they continued moving.

The government, Bank Indonesia and the banking sector would assure that there was always liquidity and credits to maintain the real sector. It will be understandable if expansion will drop in 2009," he said. He said fluctuations in the capital and share markets in the past few days were mostly caused by external factors. "The upheavals in the capital and share markets as well as foreign exchange are certainly beyond our capacity. However we must not give in and must continue to work," he said.

President Yudhoyono called on all the people to remain calm and not panic because the government until now had already taken a number of measures to deal with the situation jointly with the financial authorities such as Bank Indonesia and the banking leaders. "The government continued working. We know which had to be prioritized and we would be able to manage this global crisis," he said.

Indonesia Moves To Tackle Liquidity Crisis

2008-10-14T09:05:00.002+01:00

Indonesia on Thursday unveiled a raft of changes to stock market and banking regulations in an attempt to ease a liquidity crisis and bolster confidence after days of turmoil that triggered the suspension of share trading. Sri Mulyani Indrawati, finance minister, said trading on the Jakarta stock exchange would resume on Friday after being halted on Wednesday following a 10.4 per cent drop in the benchmark index in only 90 minutes and a 21 per cent drop in three days.

Analysts warn that, while Indonesia’s economy remains pretty healthy, the turmoil could spread from the capital market if confidence is not restored quickly. Its benchmark equity index has fallen 47 per cent this year.

From Friday, companies will be allowed to buy back 20 per cent of their paid up capital, double the previous maximum, and will no longer require shareholder approval to do so.

The government will make available Rp 4,000 billion ($420 million) to buy back their shares. This is equivalent to an average day’s trading value. Cash rich state owned enterprises, such as Telkom, Perusahan Gas Negara and Semen Gresik will also be strongly encouraged to use internal resources to buy back shares.

Banks, meanwhile, will no longer have to use mark to market valuations for their bond holdings and the minimum reserve requirement has been cut from 9.08 per cent of assets to 7.5 per cent.

Mrs Sri Mulyani stressed the new regulations were temporary but, citing “exceptional market conditions”, declined to say when they would be rescinded. James Bryson, of HB Capital Partners in Jakarta, described the steps as “positive”. But he cautioned: “Without ending the uncertainty over the Bakrie group a sustained recovery in the market is unlikely.”

Bakrie & Brothers, the conglomerate controlled by the family of the country’s powerful welfare minister, Aburizal Bakrie, is spooking the market because of the plummeting value of shares pledged as collateral for more than $1bn of loans. In the past month alone, according to data compiled by the bank UBS on Thursday, the ratio of the value of shares posted as collateral compared with the outstanding loan has fallen from 2:1 to 1:1. Bakrie & Brothers announced on Wednesday there had been no forced sale of shares of any collateralised loans and that all loan covenants were satisfied to date.

But the loans’ long term security remains opaque. Trading in Bakrie & Brothers, and five associated companies has been suspended since Tuesday. It was not clear yesterday whether the suspension would be lifted on Friday. Uncertainty also remains over the health of the broking community. Much of Wednesday’s panic was triggered by brokers struggling to settle debts as investors failed to meet obligations and liquidity dried up.

One Bakrie linked broker, Danatama Makmur, has been suspended after defaulting on obligations and Mrs Sri Mulyani said on Thursday that firm action would be taken against any others found to have contributed to the turmoil. Erry Firmansyah, the head of the Indonesian Stock Exchange, said it would be “some time” before the detailed positions of all the securities houses has been assessed.

Indonesian President Launches Torch Relay of Asian Beach Games

2008-10-14T08:57:00.002+01:00

Indonesian President Susilo Bambang Yudhoyono on Friday launched the relay of Asian Beach Games torch at the State Palace, days ahead of the games on Oct. 18 to 26 in Bali Island of Indonesia.

Forty five countries and regions with more than 3,000 athletes have confirmed their participation in the international games, according to the Bali Asian Beach Games Organizing Committee (BABGOC).

In his speech, President Susilo said that the games could build harmony and togetherness in Asia. "Athletes from Asia come with friendship. There will be competitions to build a brotherhood among Asian nations, and the world," said Susilo.

During the launch President Susilo hand in the torch, whose fire was taken from the natural source in Purwodadi of Cental Java, to a head of the contingent of the parade. Dozens of athletes will bring the torch in a parade to Bali Island. President Susilo is scheduled to open the games and Vice President Jusuf Kalla would attend the closing ceremony. Besides, scored of world's leaders will present at the games, said Subowo.

Seventeen sports will be featured in the games : handball, kabaddi (traditional Indian team sport), pencak silat (Indonesia's traditional martial art), sepak takraw (a cross between volleyballand soccer), beach soccer, beach volleyball, beach wrestling, bodybuilding, dragon boat racing, jet skiing, marathon swimming, paragliding, sailing, surfing, triathlon, windsurfing and wood ball. Indonesia will send 214 athletes and 70 coaches to compete in all 17 sports. The country's athletes have been in Bali for training since last month.

Indonesia To Ratify ASEAN Charter Foreign Ministry

2008-10-13T03:36:00.002+01:00

Indonesia is to sign up to a regional charter committing Southeast Asian nations to the principles of democracy and human rights despite doubts over its implementation, an official said Wednesday. After lengthy debate the ASEAN charter should be ratified next week, foreign ministry spokesman Teuku Faizasyah said. Indonesia is the last member of the 10 country Association of Southeast Asian Nations (ASEAN) that has not ratified the charter, after the Philippines signed up on Tuesday.

ASEAN consists of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Faizasyah said the charter would strengthen the regional bloc, often dismissed as a talking shop which fails to confront human rights abuses in member countries like military ruled Myanmar.

Myanmar's ratification earlier this year and the lack of any mechanism to sanction non-compliant members were among the reasons Indonesian lawmakers were slow to agree, he said.

"At first, we felt that if countries like Myanmar are not obliged to comply with what they sign, then ratifying the charter would be worthless," Faizasyah said. "But Myanmar's ratification is progress. We're counting on Myanmar to gradually comply with the charter." ASEAN Secretary General Surin Pitsuwan said that with the Philippines on board and Indonesia about to sign, the charter was well on its way to becoming a reality by the ASEAN summit in Bangkok in December.

"We now have just one more Member State Indonesia to go before the charter is fully ratified and I am very optimistic that we will get full ratification by the 14th ASEAN Summit in December," he said in a statement. "In fact, I am fervently anticipating that we will be able to celebrate the entry into force of the ASEAN charter at the summit." The charter requires ASEAN to uphold broad ideals of democracy and human rights and envisages the creation of a massive free trade zone by 2015.

But it lacks sanctions that can act as a deterrent against human rights abuses by rogue members such as Myanmar's military junta, human rights campaigner Rafendi Djamin said. "For example, if there is a problem in Myanmar, like an allegation of human rights abuses, it becomes a political issue. For the charter to be effective, there needs to be a dispute settlement mechanism," he said. Adreas Pareira, a lawmaker from the opposition Democratic Party for Struggle, said he hoped the charter would eventually include measures to guarantee human rights.

"We hope that the Indonesian government will struggle to make an amendment concerning this matter," he said. "There must be a concrete measure to settle this but it's difficult due to the non-interference agreement among ASEAN members." In the Philippines, Senate Minority Leader Aquilino Pimentel, who voted against the ratification, said the charter was a "sham" since it gave ASEAN no power to deal with rogue regimes like Myanmar's.

Indonesia Biofuel Policy To Reduce Palm Oil Exports

2008-10-13T03:28:00.002+01:00

Exports of palm oil from Indonesia, the largest producer, may decline by as much as 1.5 million metric tonnes a year after the nation made the use of renewable energy mandatory, a government official said. “In relation to the mandatory policy for bio-energy issued last month, we see that the use of agricultural products for alternative energy will increase,” Bayu Krisnamurthi, a deputy to Coordinating Minister for Economic Affairs Boediono, said on Wednesday in Jakarta.

“This will cut our exports” of palm oil. A fall in supplies from Indonesia, the top producer of the tropical oil, may help support prices that slumped to a two years low this week on concern slowing global economic growth will dent demand for commodities. The mandate is “positive for the week” for palm oil prices, said Tan Ting Min, a plantation analyst at Credit Suisse Group in Kuala Lumpur.

Indonesia said September 26 diesel used for transportation must have minimum 1 per cent biodiesel starting this month. The mix was set at 2.5 per cent for industrial users. The nation also mandated 1 per cent bio-ethanol mix for cars using subsidised fuel starting 2009, while industries using gasoline must ensure 5 per cent of the fuel has bioethanol.

Fossil Fuels Palm oil, with the highest calorific value of any vegetable oil, can be added to diesel to stretch supplies of fossil fuels. Brazil mandates the use of ethanol, made from sugar cane, in cars while the US uses corn to make ethanol. Indonesia’s biofuel industry can produce between 1.3 million tonnes to 1.5 million tonnes annually, said Krisnamurthi. Capacity may double to 3 million tonnes by 2010, he said.

The country’s palm oil output will be more than 19 million tonnes next year and exceed 20 million in 2010, he added. Food and chemicals industry may use 4.5 million tonnes this year and next, and 5 million tonnes in 2010, Krisnamurthi said. Palm oil for December delivery is trading at 1,819 ringgit ($520) a ton on the Malaysia Derivatives Exchange at 4:14 pm local time. Prices have dived 60 per cent from a peak in March. Futures may average 2,900 ringgit a tonne in 2009, compared with 3,226 ringgit so far this year, Credit Suisse’s Tan said.

Indonesia Halts Stock Market Trading on Abnormal Index Drop

2008-10-13T03:17:00.003+01:00

PT Bursa Efek Indonesia (BEI) suspended trading on Indonesia's main stock market Wednesday morning, after the Composite Stock Price Index plunged 10.38 percent to 1,451.67 points, The Jakarta Post reported.

"The 10 percent decline cued BEI to suspend the market after consulting Bapepam (the Capital Market and Financial Institutions Supervisory Agency)," said acting Finance Minister Sofyan Djalil, adding that the "index drop was not normal."

The Indonesian Jakarta Stock Exchange has seen the benchmark index fall for successive three days after the fast breaking festival, due to fears about the global financial crisis. It dropped 10 percent and closed at 1,649 points on Monday, and went down 1.8 percent to reach 1,620 points on Tuesday. Indonesia was one of the countries hardest hit by the East Asian financial crisis in 1997 and 1998, when its currency against U.S. dollars dropped from about Rp. 2,000 to Rp. 18,000, and the economy shrank by 13.7 percent. Thus, the country is sensitive to the recent U.S. led financial crisis, fearing to see a repetition of the 1997-98 crisis.

Indonesia's Central Bank Raises Key Interest Rate

2008-10-10T08:58:00.002+01:00

Indonesia's central bank raised its key interest rate by a quarter point to 9.5 percent Tuesday, opting to tackle rising inflation as other Asia Pacific countries cut rates or keep them on hold amid the global credit crunch. Bank Indonesia also was hoping the move would stabilize the local currency, the rupiah, which fell sharply Monday against the dollar as the country's benchmark stock index tumbled 10 percent.

The global credit crisis that began in the United States will not seriously damage Indonesia's economy, said Gov. Budiono, who like many Indonesians goes by one name. "We are on the alert, but there is no need to worry," he told reporters, saying the current situation was very different from the 1997-1998 Asian crisis. "The center of this crisis is from abroad, we are getting its wave, which in my opinion, will have limited impact," he said.

The rate hike came the same day as Australia's central bank cut its key rate a full percentage point to 6 percent to help encourage lending as the world wrestles with a credit crisis. Japan's central bank kept interest rates unchanged after its policy meeting Tuesday. "We are guarding the market. We will continue to be in the market to prevent excessive volatility."

The composite JSX index fell almost 2 percent Tuesday to close at 1,619.72, while the rupiah rose slightly to 9,600 per U.S. dollar after falling 3.2 percent on Monday.

Indonesia's central bank raised its key interest rate by a quarter point to 9.5 percent Tuesday, opting to tackle rising inflation as other Asia Pacific countries cut rates or keep them on hold amid the global credit crunch. Bank Indonesia also was hoping the move would stabilize the local currency, the rupiah, which fell sharply Monday against the dollar as the country's benchmark stock index tumbled 10 percent.

The global credit crisis that began in the United States will not seriously damage Indonesia's economy, said Gov. Budiono, who like many Indonesians goes by one name. "We are on the alert, but there is no need to worry," he told reporters, saying the current situation was very different from the 1997-1998 Asian crisis.

"The center of this crisis is from abroad, we are getting its wave, which in my opinion, will have limited impact," he said. The rate hike came the same day as Australia's central bank cut its key rate a full percentage point to 6 percent to help encourage lending as the world wrestles with a credit crisis. Japan's central bank kept interest rates unchanged after its policy meeting Tuesday.

But in Indonesia, the concern was to rein in inflation, which rose to a two year high of 12 percent. "The key interest rate increase is to hold down the inflation rate," said Budiono. "We are guarding the market. We will continue to be in the market to prevent excessive volatility." The composite JSX index fell almost 2 percent Tuesday to close at 1,619.72, while the rupiah rose slightly to 9,600 per U.S. dollar after falling 3.2 percent on Monday.

2nd Malaysia-Indonesia EPG Meeting In Kuala Lumpur

2008-10-10T08:44:00.004+01:00

The second Malaysia-Indonesia Eminent Persons Group (EPG) meeting in Kuala Lumpur tomorrow will continue to deliberate on bilateral enhancing activities and programs, and determine its future direction to uplift the current state of bilateral relations. The seven Malaysian EPG to the two days meeting at the Mandarin Oriental Hotel will be led by chairman Tun Musa Hitam while the seven Indonesian EPG by Tan Sri Try Sutrisno.

"This meeting will be the second of a series of EPG meetings, following the first which was held in Jakarta from Aug 29 to 30," Malaysian Deputy Head of Mission to Indonesia, Amran Mohamed Zin said here Tuesday.

He said the Malaysia-Indonesia EPG meetings had been mandated by the leaders of the two countries to forge and enhance mutually beneficial cooperation between Malaysia and Indonesia.

"The EPG mechanism, comprising 14 highly distinguished and well respected personalities from both countries, also bears testimony to the commitment of both sides towards ensuring harmonious relations in the years ahead and in harnessing the existing complementaries with the view to forge greater strategic depth in bilateral relations," Amran added.

Besides Musa, the Malaysian members of the EPG are Datuk Seri Panglima Joseph Pairin Kitingan, Tan Sri Abdul Halim Ali, Gen (R) Tan Sri Mohd Zahidi Zainuddin, Professor Tan Sri Dr Khoo Kay Kim, Tan Sri Dr Hamid Bugo and Datuk Syed Ali Tawfik Al Attas.

The Indonesian members of the EPG are Gen Sutrisno, Ali Alatas, Prof Dr Quraisy Shihab, Datuk Drs Des Alwi Abubakar, Dr Musni Umar, Dr Pudentia Maria Purenti Sri Sunianti and Wahyuni Bahar.

Indonesia's Former Rebel Leader To Return To Homeland

2008-10-09T04:14:00.003+01:00

Muhamad Hasan Di Tiro, a former chief of the Free Aceh Movement (GAM) rebel group in Indonesia, will return to his homeland on October 11 for the first time after he left 30 years ago, The Jakarta Post reported.

"His return has nothing to do with politics," said Suadi Sulaiman, a spokesperson for the then GAM council. "He has been missing his homeland Indonesia very much, in particular Aceh."

Hasan planned to spend between two weeks and one month in Aceh. He was invited by the Aceh government and legislative council, aimed at boosting peace in the province, which was engulfed in armed conflict for decades. The Indonesian government and Aceh rebels signed a peace pact in Helsinki more than three years ago. Before that, Hasan led the fight against Indonesian rule from his base in Sweden as a Swedish national. Hasan arrived in Kuala Lumpur on Saturday and had met with several former leaders of the GAM, said an activist quoted by Indonesia's official news agency Antara on Sunday.

The source also said that Hasan will stay in the city for several days to meet representatives of the Indonesian government and then be taken to Jakarta before being flown to Nanggroe Aceh Darussalam, his home town. But whether or not Hasan would fly to Jakarta first before heading to Aceh will depend on Jakarta's lobby.

Indonesia's Mount Soputan Erupts Again

2008-10-09T04:03:00.002+01:00

One of Indonesia's most active volcanoes erupted Monday, spewing flames and clouds of smoke up to a kilometre into the air.

Indonesia's volcanology centre said the nearest villages are about eight kilometres from the mouth of the crater on Mount Soputan, putting residents well beyond the danger zone.

However, people have been advised to stay well clear of the volcano because it may begin spewing lava. Mount Soputan is on Sulawesi Island, about 2.160 kilometres northeast of the capital, Jakarta. Indonesia straddles a major fault line known as the "Pacific Ring of Fire" and has more active volcanoes than any other country.

Indonesia Applies For Palm Oil Patents

2008-10-09T03:54:00.003+01:00

An Indonesian plantation company has filed the first patent applications for a hybrid variety of palm oil seeds and their production that it expects will increase palm oil yield by several hundred per cent. London Sumatra, a British founded company now part of the Indofood Group, is confident the new hybrid palm oil varieties should boost yields from the Indonesian average of about 4 tonnes a hectare per year to at least 18 tonnes.

More than 90 per cent of maize grown in the US is of F1 hybrids and yields are almost six times what they were before the varieties were introduced 80 years ago. Analysts say that while other factors such as agronomy and crop protection also contribute to higher yields, F1 hybrids could have a big impact on palm oil production. It should also greatly enhance palm oil’s environmental reputation since far less land would be required to meet global demand. This should have positive consequences for its attraction as a biofuel.

Green campaigners routinely label palm oil, particularly from Indonesia, as extremely environmentally unfriendly because so much virgin rainforest is cleared for plantations. Sumatra Bioscience, the Lonsum subsidiary behind the project, says commercial roll out is still a decade away because of the testing required.

Some analysts caution high sales could take years more than that if companies wait till consistently high yields have been proven. In 2007, the world consumed 38m tonnes of palm oil, more than any other animal or vegetable oil or fat.

Jakarta listed Lonsum filed its patent application with the European Patent Office in March 2007 even though it has yet to produce an F1 hybrid seed. Patent lawyers say it would have then undergone robust examination before being published for public scrutiny a fortnight ago.

Approval could take two years but no other company will be allowed to apply for a similar patent while this is pending. Stephen Nelson, Sumatra Bioscience’s research director, said “The genetics of it, the fundamentals of it, strongly suggest there’s no reason why we shouldn’t achieve the high yields. There’s no further inventive step to create the F1 hybrid seed. All we’re going to do is an established process.”

Simon Lord, the sustainability director at Kulim, a Malaysian competitor of Lonsum, said the breakthrough “has the potential to be very significant”. “Provided they get the right combination of genes that are exposed, yields should be very high and that is fairly likely,” he said. Dorab Mistry, a director of Godrej International and one of the world’s leading vegetable oil analysts, said “It’s a major step forward to solving the world’s energy demand. It will revolutionise oil palm production if all goes well.” He described Lonsum, as “the pick” of Indonesia’s plantation companies.Indofood paid $620m for 64.4 per cent of the company last October.

Indonesia's Bumi Plans New Buyback After Share Fall

2008-10-09T03:44:00.003+01:00

Indonesia's largest coal producer, PT Bumi Resources Tbk , is seeking the approval of shareholders to buy back an additional 10 percent of its 19.4 billion outstanding shares, the company said. The buyback plan, which would be on top of 3 percent share buyback that was approved in June, came after the firm's share price plunged by nearly a third on Monday to 2,175 rupiah ($0.227).

Bumi's president director, Ari Hudaya, said in a statement late on Monday the extra buyback was in response to "the irrational market condition arising from fears of a global financial turmoil impacting every sector of the economy.

" Separately, BNP Paribas slashed its target price on the company by 49 percent to 4,500 rupiah a share, as it reduced its 2009 net profit forecast for Bumi Resources to $987 million from a previous estimate of $1.78 billion.

"We have slashed our target price by 49 percent to 4,500 rupiah as we aggressively slash our assumptions. In nearly all cases, our new assumptions are much more conservative than market consensus," BNP analyst Kim Kwie Sjamsudin said in a report.

"We believe investors are focusing more on downside risks at this juncture," Sjamsudin said, adding that "despite aggressive cuts in our assumptions, we still find good value in Bumi." He said the current share price of Bumi implied the market pricing in coal prices of $75 a tonne or comparable to oil prices of $65 a barrel.

Holiday Accidents Kill at Least 427 People in Indonesia

2008-10-08T03:17:00.002+01:00

At least 427 people were killed and more than 1,400 others injured in traffic accidents across the country during this year's Eid al-Fitr holiday season, marking the end of the Muslim fasting month of Ramadan, media reports said Sunday.

National police spokesman Abubakar Nataprawira said the figures were tabulated from reports between September 25 and October 4, with a total of 970 accidents involving 1,258 vehicles.

"The figures may still increase because our traffic operation to ensure the safety of homeward bound travelers during the Eid al-Fitr holiday is not over yet," The Jakarta Post quoted Nataprawira as saying. Last year, police recorded 1,875 accidents during Eid al-Fitr that killed 798 people, which was up by 82 per cent compared from the fatality figures in 2006. The return influx of holiday travelers was expected to reach its peak this weekend, as offices are set to resume activities on Monday.

Japanese Energy Firm Eyes Gas Production Base in Indonesia

2008-10-08T03:03:00.002+01:00

Inpex Corp., a major Japanese energy company, is in the final stage of negotiations to build an offshore plant to produce liquefied natural gas in Indonesia, company sources said Sunday.

The company, in which the Japanese government holds a stake of 29.35 per cent, is slated to clinch a deal with the Indonesian government, possibly later this year, for what it claims to be one of the world's first floating LNG facilities, the sources said.

The facility, with an estimated construction cost of more than 1 trillion yen, is expected to come onstream as early as in 2015, the sources said. Inpex plans to extract natural gas from an undersea field in the Masela block it is developing in the Timor Sea and export liquefied products to Japan, the sources said. An annual output of around 4.5 million tons is being eyed. In September, Inpex announced that its Australian unit Inpex Browse Ltd. and French energy company Total will build a facility to produce more than 8 million tons of LNG per year in Darwin, northwestern Australia.

Combined with the Australian project, Inpex will be able to provide nearly 20 per cent of Japan's LNG imports. Inpex had initially planned to deliver natural gas from the Masela block to an onshore base in Australia via a pipeline but decided to go along with the Indonesian government's wish to have a production base within its territory, the sources said.

Indonesia Appoints New Police Chief

2008-10-08T02:53:00.002+01:00

Indonesia's new chief police has officially been sworn in by the country's president, Susilo Bambang Yudhoyono. The Jakarta Post reports General Bambang Hendarso Danuri, who achieved his four star ranking earlier, replaces General Sutanto who retired at the end of September.

During the swearing in ceremony, the 56 year old pledged to push for institutional reform within the police force with an emphasis on improving its image. He says disciplining top police officers will be his top priority.

He has also promised to continue the programs started by his predecessor, including tackling gambling, illegal logging, illegal fishing, illegal mining, corruption, drug abuse and security threats. General Hendarso will serve as police chief until at least 2010.

Indonesia's Telecom Giant to Bid For New Satellite

2008-10-08T02:47:00.002+01:00

Indonesia's largest telecommunication firm, PT Telekomunikasi Indonesia (PT Telkom), has planned to bid for a new satellite in October at a cost from 150 million to 200 million U.S. dollars, according to the website of The Jakarta Post on Saturday.

"The bidding process will begin this month or after Idul Fitri (fast breaking festival)," said Rinaldi Firmansyah, president director of PT Telkom, on Saturday. He added that the potential providers of the satellite are Lockheed Martin, Alcatel, OCbital, GreatWall, and Mitsubishi, respectively from the United States, Europe, China and Japan.

The satellite, which will be called Telkom-3 Satellite, is expected to be launched into orbit in 2010 or 2011. PT Telkom expected that it will meet the increasing demand for transponders so as to expand Telkom Group services and the needs of external parties such as the military and state owned companies. PT Telkom is currently operating its Telkom-2 Satellite worth 150 million dollars, which was launched on November 12, 2005.

Indonesia Real Estate Seen as Good Investment

2008-10-07T03:13:00.002+01:00

Investors in Indonesia are driving up the prices and values of property in the country and region as they shift more money into real estate from bank deposits, according to Housing Minister Yusuf Asy´hari in an interview with Reuters. Many wealthier investors are looking for higher returns than their low yield bank deposits, and real estate is benefiting. According to the Indonesia Property Study Center, property prices are up about 12 percent so far this year.

Prices in and around Jakarta for residential property have increased substantially over the past year, according to the minister.

“The property sector attracts a lot of attention. When we talk about investment, we talk about choices. Investors will certainly shift their funds into higher yielding investments,” Asy’hari told Reuters.

He continued, “The bank deposit rates are low, that’s why they shift their investment into apartments,” and also added that demand for landed housing was also strong. The government of Indonesia is promoting real estate and the construction of new homes as it targets a total of 1,000 new apartment blocks in the next few years.

The investment in these new building projects will amount to some US $5 billion and be spread out across the many islands of the nation. It is hoping that the rising property values and a favorable tax rate will help to spur increased construction and lure developers to build new homes.

Indonesia Makes Gains in Fight Against Corruption

2008-10-07T03:05:00.002+01:00

Indonesia's fight to curb corruption has led to a series of headline grabbing investigations in recent months. Examines efforts to beat graft, which has plagued the nation for decades. Indonesia's leap from 143rd to 126th on the Transparency International corruption perception index last month is a small sign of improvement in a country widely viewed as one of the most corrupt in Asia. The organization grades perceptions of corruption in 180 nations.

Transparency International's Indonesia division says a spate of high profile prosecutions improved the business community's confidence in efforts to combat corruption. The Corruption Eradication Commission, or KPK, leads the campaign against graft. The commission, established in 2002, is an independent body with wide investigative and prosecutorial powers. The latest case brought the arrest of Competition Commission member Mohammad Iqbal, who was caught taking a $66,000 bribe from the director of a television network.

In August Iqbal and fellow commissioners ruled that the network was not guilty of monopoly practices in its broadcasts of the English Premier League soccer matches. Fellow commissioner, Sjamsul Maarif, says he is shocked at the arrest, but says the commission will not reconsider past decisions.

"In terms of our decision, I think our office has declared that the decision has been ruled," he said. "So maybe a businessperson who feels dissatisfied with our decisions, maybe they can go to district court and add this current situation to their argumentation, it depends on them."

The KPK, which thus far, has a 100 percent conviction rate, has reached into some of the highest offices in the land. Last week, Aulia Pohon, the father in law of Indonesian President Susilo Bambang Yudhoyono's eldest son, testified in the corruption court that he was in charge when the central bank distributed more than three million dollars in bribes to parliament members. The bank wanted legislators to pass favorable laws in 2004. It recently earned public praise for the conviction of a former senior prosecutor with the Attorney General's office.

Judges sentenced Urip Tri Gunawan to 20 years in jail more than twice the length of any previous corruption sentences. Gunawan was found guilty of accepting a $660,000 bribe from businesswomen Artalyta Suryani. The money was a reward for helping close an investigation of bank tycoon Sjamsul Nursalim. He is wanted for embezzling $3 billion during the Asian financial crisis 10 years ago, in a case known as the BLBI scandal. Suryani was earlier sentenced to five years in prison.

Nursalim fled Indonesia and is believed to be living in Singapore. Former Australian diplomat Kevin Evans has monitored Indonesian corruption for years and is studying politics at the University of Indonesia. He says the KPK has mounted a heroic effort against corruption. "The prime message being sent is that the dirty little deals that you do together may not necessarily stick. So that the kindly faced bureaucrat that's happy to process you for privileged whatever can't necessarily deliver anymore," he said. "But I think quite clearly the KPK is above them at this stage.

And the really wonderful thing that I find is that the integrity of the investigation and the prosecution has been unimpeachable." The Attorney General's office has resisted calls to reopen the case against Nursalim and others implicated in the bank scandal, saying the conviction of the prosecutor is not new evidence. Danang Widoyoko is the deputy coordinator of Indonesia Corruption Watch. He says the Attorney General's office has no credibility in corruption cases.

"The KPK should follow up, to take over the handling of the BLBI cases," he said. "I mean the corruption by Urip happened in the prosecuting of the BLBI cases. In this case the attorney general does not have enough public trust anymore to prosecute the BLBI cases." While the corruption court has received accolades, the country's regular courts are criticized for their lackluster response to graft.

According to Indonesia Corruption Watch, of 125 recent cases filed by the Attorney General's staff, a third were dismissed and more than half of those jailed received sentences of less than two years. Despite Indonesia's improved ranking on the Transparency International list, Danang Widoyoko at Corruption Watch says low level corruption remains a daily problem. "The data gathered by T.I. is perception among the business community, perception among the expatriates on Indonesia's level of corruption.

If we compare with the daily situation here, people are still complaining because corruption still exists," he said. "Everyday we still see corruption by traffic police. We have to deal with corruption to get licenses and to get other government services." And there is a high cost. Surveys indicate that Indonesian households spend an average of one percent of their income on bribes, and the poor pay disproportionately more. The government estimates that corruption costs it several billion dollars in losses each year.

Indonesia GSM and 3G Operator Picks Huawei

2008-10-07T02:55:00.003+01:00

AXIS, Indonesia’s newest GSM and 3G operator, has chosen Huawei as a key partner in rolling out its full service national network. For a period of three years to 2010, Huawei will be responsible for designing, deploying and managing AXIS' 2G/3G network within the island of Java, Bali, Lombok, Kalimantan and Sulawesi.

Under the deal, Huawei would also be responsible for close to 4,000 sites across the country, on GSM and 3G radio access, optical and microwave transmission, and would provide a nationwide core network and intelligent network (IN) system to AXIS.

Huawei has been a strategic partner of AXIS from the beginning, noted Erik Aas, president and CEO, AXIS, who is also pleased that Huawei will continue to be part of AXIS’ next phase of growth.

Ma Yue, president of PT Huawei Tech Investment, stated that they are proud to be an AXIS strategic partner. Their company always focuses on addressing the challenges of its customers, in order to provide them with winning solutions for their businesses, and creating long term relationships in the process.

Huawei recognizes that Indonesia represents a major growth market and they have decided to make efforts to help AXIS realize its potential. The AXIS project will use Huawei’s innovative single RAN solution, including the unified Fourth Generation BTS platform, which can support multi mode radio access between GSM and 3G, as well as allow future seamless evolution into HSPA+ and LTE.

Huawei's single RAN solution offers a number of benefits it can swap and optimize the old GSM networks, improve their performance, decrease O&M costs, reduce their power consumption and carbon dioxide emissions and pave the way for the smooth evolution to future networks. Huawei recently launched the industry's first 3G / 2G Software Defined Radio (SDR) Single RAN product developed in close cooperation with technologists from Vodafone, who aim to enhance the customer experience in a more cost effective and energy efficient way.

Bomb Found In Shopping Center In Eastern Indonesia

2008-10-07T02:24:00.002+01:00

A low intensity explosive bomb was found in a shopping area in Palu of Indonesia's Central Sulawesi province Tuesday midnight. The provincial spokesperson said that the bomb was handmade and was covered with a plastic bag. The package consisted of cable, detonator, cell phone casing and a light bulb.

Media reports said that children had found the device under a vendor's cart and had played with it for some time until adults realized its potential threat and called the police. The police exploded the bomb at the site.

They said that it was an attempt to terrorize the public on the eve of the Eid al-Fitri festival to be celebrated Wednesday. They are reported to be investigating the case. Central Sulawesi and its surrounding districts have witnessed occasional communal flare ups between the Muslims and Christians. In 2000 and 2001 about 1,000 lives were lost in one such violence. A government brokered deal came into force in December 2001.

Jayakarta Hotels to Open Four Star Property in Komodo

2008-10-07T02:19:00.002+01:00

Jayakarta Hotels and Resorts will open a 71 room four star leisure property, ‘The Jayakarta Suites Komodo’, near Komodo Island in July 2009. The hotel will offer deluxe rooms, suites and Jayakarta suites.

It will house a fully equipped 350 person meeting room, a coffee shop, lounge, bar, fitness centre, sauna, massage center, swimming pool and tennis court.

The resort will also provide diving, snorkelling and other adventure activities. Cruise services to Komodo Island, which is a 1.5 hours from the resort, will be available through the hotel. The island is home to the famous ancient Komodo Dragon, the world's largest living lizard species. From mid October 2008, the group will enter into management contracts with hotels in and around Indonesia, especially smaller hotels looking for good branding. It is in the process of working out these contracts' modalities. The group already has properties in Jakarta, Bandung, Bali, Lombok, Anyer, Cisarua and Jogjakarta.

Indonesia Running Short of 64,420 Tons of Beef

2008-10-06T05:10:00.002+01:00

The Ministry of Agriculture has predicted that Indonesia will face a shortage of 64.420 tons of beef this year, an agricultural official said. "This year, we will run short of 64.420 tons of beef or about 239.700 head of cows," Director General for Processing and Marketing of Agricultural Products, Zainal Baharudin said here recently.

He said meat production at home this year was 318.189 tons which came from 1.9 million slaughter cows. "But the meat deficit could be covered with imports in the form of frozen meat and innards," he said.

The director general said under the pertinent government policy, live cows could only be imported from Australia. Frozen meat could be imported from the United States, New Zealand and Australia.

In response to a question on the need for meat in the face of the post fasting month or Lebaran festities, the director general said the government was not facing any problems in meeting the domestic need for meat.

"Meat stocks are enough to meet demand in the coming Lebaran holidays," he added. He said the price of cows has continued to increase this year. In February it reached Rp 17.200 per kg and in September it was recorded at Rp 21.600 a kg.

Full Oil Output at Indonesia's Cepu Maybe Delayed

2008-10-06T05:05:00.002+01:00

Full scale production at Indonesia's biggest oil find in a decade, the Cepu block, could be delayed by a year if Jakarta and ExxonMobil fail to resolve differences over storage facilities, an official of the oil major said on Friday. The giant Cepu oil block, jointly developed by ExxonMobil and Pertamina, ranks among the U.S. major's top 10 projects worldwide, and any delay would be a blow to Indonesian plans to boost domestic crude output.

Cepu is scheduled to launch this December with volumes of 10,000-20,000 barrels per day (bpd), which will be refined domestically, said the official, who declined to be identified. But full scale production of around 165,000 bpd may be delayed from the scheduled date of 2011, as differences over oil storage facilities have still to be resolved, the official said.

Indonesian oil watchdog BPMIGAS has already approved an offshore floating storage and offloading unit as part of Cepu's oil production facilities, BPMIGAS deputy chairman Abdul Muin said.

But parliament members say the facilities are expensive and are pushing for an onshore terminal, Muin said. "BPMIGAS has agreed previously about storage facilities. If the government wants to change this then there will be a risk," the Exxon Mobil Indonesia official. "If facilities for oil are delayed then full production that was already planned in 2011 may be delayed.

That could be delayed for another one year. But we are still working according to the plan so far," the official added. Indonesia, Asia Pacific's only OPEC producer and the only member which is a net importer of oil, has struggled to maintain output as it has failed to tap new oilfields fast enough to compensate for older ones as they become less productive. The government hopes that quick development of Cepu will help reverse Indonesia's shrinking oil output.

Pertamina estimates oil reserves in the main Banyu Urip field in the Cepu block at 350 million barrels, above Exxon's initial assessment of 250 million barrels. Indonesia's crude oil production is likely to fall slightly to 862,200 bpd in September from 862,600 bpd in August. Its condensate output was expected to fall to 122,000 bpd in September from 125,000 bpd in August.

Up to 9 Killed in Ferry Fire in Eastern Indonesia

2008-10-06T04:59:00.002+01:00

A ferry carrying around 60 passengers caught fire in rough seas in Indonesia's eastern Moluccas islands, killing up to nine people, police and media said on Friday.

Ongen Meniks, a police office in the Moluccas islands, said at least four bodies had been found, but he expected the number of dead to rise, adding that it was unclear how many people had been rescued. Metro Television said the death toll had reached nine people.

Limitless Unveils $1.7 billion Indonesia Project

2008-09-29T08:59:00.002+01:00

Limitless, the global real estate arm of Dubai World, has announced it is to extend its operations into Indonesia with a $1.7 billion mixed use project, after securing a stake in the subsidiaries of a developer in the South East Asian country.

The 33 hectare Rasuna Epicentrum, which will be showcased at Cityscape Dubai next month, is the first project for the UAE firm in Indonesia and the fourth in South East Asia, where it already has developments underway in Malaysia and Vietnam.

Following a joint venture signing between Limitless and Jakarta based Bakrieland Development (BLD), the firm has become a 30 percent shareholder in BLD subsidiaries Bakrie Swasakti Utama, Bumi Daya Makmur and Superwish Perkasa. Located in Jakarta’s Golden Triangle, the city’s fastest growing business district, Rasuna Epicentrum will accommodate 40,000 people in more than 1.2 million square metres of office and residential towers.

Indonesia's Motorcycle Sales Continue to Grow

2008-09-29T08:54:00.002+01:00

Motorcycle sales in Indonesia are continuing to out perform their American counter parts. Industry experts are quoting increases of 43 percent in the first eight months of 2008 compared to the same period last year with sales reaching 4.2 million. During that flurry of sales Honda has managed to retain the top spot with Yamaha coming in at an aggressive second place.

The robust growth came despite Indonesia's current high interest rate environment and fuel prices that have increased 28.7 percent. Honda sold 1.9 million units to not only claim the title of best selling brand but also take 47 percent of the market share. Yamaha trailed closely with sales recorded at 1.6 million, followed by Suzuki with 0.56 million units.

Last year, more than 4.7 million motorcycles were sold in Indonesia with Honda, Yamaha and Suzuki controlling more than 95 percent. The country has seen a rapid growth in motorcycle sales with two-wheeled ownership increasing by 125 percent from 2000 to 2007, growing 13.2 million over the seven year period.

Indonesia Continues Sweep On China Milk Products

2008-09-29T08:50:00.002+01:00

The Indonesian Drug and Food Control Agency continued its sweep on imported Chinese milk products throughout the country on Wednesday.

"We are checking on products suspected to have been contaminated. A few products that have been found are being examined," said agency head Husniah Rubiana Thamrin Akib.

She could not say how many Chinese milk products had been confiscated but said that action was being taken with the aim of preventing the public from consuming contaminated milk products. Distributors have also started withdrawing Chinese milk products, following a directive issued by the agency on Tuesday. "We are still compiling the data. Perhaps, in a few days' time, the nationwide sweep will be over,"

Indonesia Selects Members For New Energy Board

2008-09-29T08:44:00.003+01:00

The Indonesian House of Representatives' Commission VII, which oversees energy affairs, has approved eight members for the country's newly established National Energy Board. The members include Rinaldy Dalimi, professor of electrical engineering at University of Indonesia Tumiran, professor of electrical engineering at Gajah Mada University Eddie Widiono, chairman of a national team on energy saving Herman Darnel Ibrahim, energy analyst Widjajono Partowidagdo, technology engineering expert Mukhtasor, environmental expert Agusman Effendi, representing consumers and Herman Agustiawan, representing consumers.

Under Indonesia's Energy Law, approved in July, 2007, the government is required to set up the NEB, which is to be chaired by the president and to have 15 members, including seven ministers. The Energy Law aims generally to guarantee energy stockpiles based on domestic sources and imports, as the Southeast Asian nation struggles with regular power outages and declining oil output.

Under the law, the NEB is charged with monitoring the implementation of national energy policy and determining the steps needed to overcome possible obstacles and the threat of future energy crises. "With the approval of this energy law, we will encourage people to use more renewable energy instead of fossil fuel in future," said Energy Minister Purnomo Yusgiantoro.

Indonesia, which recently withdrew from the Organization of Petroleum Exporting Countries, has seen a continued decline in its production of crude oil. The country is making an effort to shift some of its energy demand to more abundant natural gas or coal and biofuel.

Renewable Fuel Corp Acquires Two Biodiesel Projects

2008-09-29T08:36:00.002+01:00

Renewable Fuel Corp (RFC), a leading producer and supplier of biodiesel and biodiesel blended fuels in North America andin key International markets, is pleased to announce today the acquisition of Bio Refining Industries, Inc. (BRII) which owns two Indonesian biodiesel projects, licenses and plant properties with nameplate capacity of 400,000 Metric Tons (MT) per year of biodiesel. The facilities are in the early stages of development in Dumai, Indonesia.

When at full production capacity the plants will have the ability to produce 120 million gallons of B100 biodiesel per year.

The plant project sare strategically located adjacent to a primary international shipping route and near Kota Dumai and the port. Additionally, there is a large of supply of agriculturally produced crude palm oil and jatropha, which will be used as feed stocks.

These plants, when combined with RFC's current facilities in Kuantan,Pahang, Malaysia, will create one of the largest premier biodiesel and biofuels manufacturers and distributors in the industry.

The combined name plate capacity of all three plant facilities will be over 600,000 MTper year yielding 180 million gallons of B100 biodiesel per year. RFC will also have a significant position in the carbon credits marketplace, with carbon credits produced for each ton of biodiesel created.

"I have a vision of building a company that can truly leverage the worldwide biodiesel opportunity," said William Van Vliet, Chairman of Renewable Fuel Corporation. "This new acquisition is an important additionin our strategy to build a diverse worldwide green fuel company. AsChairman I intend to pursue a strategy of creating one of the most advanced vertical providers in the biodiesel or biofuel industry. With these new biodiesel facilities we are well positioned to fulfill this strategy."

Leaders Wary of Hurdles to Climate Treaty in 2009

2008-09-26T03:27:00.001+01:00

Leaders from Poland, Norway, Denmark and Indonesia on Wednesday pressed for a global climate treaty to replace the Kyoto Protocol next year but said prospects were extremely unfavorable. Some said replacing the 1997 global warming accord depends largely on the United States dropping its opposition to participating, and whether wealthy and poorer nations can bridge their differences over technology sharing and cutting emissions.

The U.N. is campaigning to replace the accord, which regulates the emissions of 37 industrial countries, with another accord at a meeting in Copenhagen, Denmark in December 2009. If approved, it would take effect in 2012 when Kyoto expires. The U.S. rejected the Kyoto Protocol, arguing it would harm American business and didn't require similar cuts by China, India and other emerging economies.

But those developing countries have refused to accept a binding arrangement that would limit their development. “Without the United States, we can never succeed,” said Norwegian Environment Minister Erik Solheim.

“If the Americans are not moving, anyone else who does not want to move will hide behind the Americans.” The new accord is expected to aim for global cuts of 50 percent by 2050, below the 1990 levels of carbon emissions.

“There is very little progress and there is reason to be concerned about the progress of the negotiations aiming at reaching an agreement in 2009,” Norwegian Prime Minister Jens Stoltenberg said at one of several climate related gatherings Wednesday held on the sidelines of the U.N. General Assembly's annual ministerial session. “The main reason why there is too little progress is distrust, is the lack of confidence between the rich world and the developing world,” he said.

“And that's because the rich world promised in Kyoto, in 1997, to transfer knowledge, capital to assist the developing world with creating sustainable development. That hasn't happened at least to a very limited amount or scale.” That's also why, he said, Norway agreed to donate $35 million in startup money for a new U.N. program announced Wednesday aimed at curbing deforestation.

The program will pay for more monitoring and verification of tropical rainforests, as part of an effort to persuade rich nations to reward developing countries for conserving and expanding their remaining forest cover. Chopping down trees contributes to climate warming by eliminating plant material that absorbs carbon dioxide, and by releasing the dead wood into the atmosphere as more carbon. By helping reverse the rapid pace of deforestation in the tropics, proponents envision the possibility of cutting greenhouse gas emission globally by up to 20 percent.

“It has the potential to make substantial and immediate contributions,” said Secretary General Ban Ki-moon. The program will begin on a pilot basis in nine countries: Bolivia, Congo, Indonesia, Panama, Papua New Guinea, Paraguay, Tanzania, Vietnam and Zambia. Some nations, such as Indonesia, which has abundant tropical forest cover, could receive as much as $1 billion a year by making steep cuts in its deforestation rate, according to some U.N. estimates. Last year, a U.N. panel of scientists said climate change is happening, and the Earth's temperature would continue rising even if emissions of carbon dioxide and other warming gases were cut to zero today because of their accumulation in the atmosphere.

Leaders from Indonesia, Poland and Denmark said Wednesday they had agreed to help Ban rally efforts over the next 15 months to reach a new agreement in Copenhagen in 2009, by moving the agenda from the abstract to the concrete and raising the sense of urgency. An earlier round of negotiations toward a new global climate treaty is scheduled to take place in December in Poznan, Poland. “We must shift to high gear,” Indonesian Foreign Minister Hassan Wirajuda said.

Thousand Rally Against Indonesia's Porn Bill in Bali

2008-09-26T03:15:00.003+01:00

About 1,000 people protested against Indonesia's anti pornography bill on the resort island of Bali on Tuesday, prompting the local governor to vow he would ask the president to drop the controversial legislation.

The protesters who wore traditional Balinese sarongs and headdresses, and carried banners with the words "Anti porn bill no, Indonesia yes" marched to Governor Made Mangku Pastika's office in Denpasar.

"We will sign a Balinese statement and will send it immediately to President SBY," Pastika told the crowd, referring to President Susilo Bambang Yudhoyono by his initials. The anti porn bill is being pushed by a small group of Islamist parties in predominantly Muslim, but officially secular, Indonesia. But it has been condemned by some of the country's minorities including the Balinese, who are Hindu, as well as Christians, and some tribal groups who favor near nudity as traditional attire.

Critics say that the exceptions to the bill for sexually explicit cultural and artistic material are too vague, and that by allowing civil organizations to play a role in preventing pornography, this could open the door for vigilante groups to take the law into their own hands. Balinese art incorporates nudity and sexually explicit images, while in the eastern province of Papua some tribal men wear just penis gourds.

Legislators have so far stopped short of passing the bill, which has been discussed for about three years, because critics say it would threaten Indonesia's tradition of tolerance and diversity. Some parliament members were hoping that the anti smut bill would be approved this month, but the bill was postponed again last week.

Indonesia Bans Imports of Dairy Products From China

2008-09-26T03:09:00.001+01:00

Indonesia has temporarily banned imports of dairy products from China to ensure product safety following the tainted dairy products scandal in China, a health ministry official said on Tuesday. "We have banned dairy products from China because they mostly don't have distribution permits," Lily Sulistyowati, the ministry's spokeswoman, said. "The situation in China is severe. We don't want to get affected," she said.

China vowed to prevent toxic milk from reaching processors and export markets after an infant powder scandal that has made more than 54,000 children sick and mired the nation's trade reputation in fresh crisis.

Only one dairy product from China has a legal permit for distribution in Indonesia and the government has pulled out the product from the market for investigation, Sulistyowati said.

The Indonesian Food and Drugs Supervisory Agency has instructed all regional offices to pull out Chinese dairy products from stores for investigation, particularly in border areas, Sulistyowati said. Fear has spread across the world about the safety of Chinese dairy products. Brunei, Singapore, Malaysia, Hong Kong, Taiwan, Japan, Bangladesh, Gabon, Burundi and the Philippines are some of the countries testing Chinese dairy products or pulling them from the shelves altogether.

Thomas Darmawan, chairman of the Indonesia Food and Drinks Producers Association, said consumers should not panic as Chinese dairy products only account for a tiny amount of the country's dairy product imports. "I hardly see imports of raw material for the making of dairy products from China," Darmawan said. Indonesia imports about 250,000-300,000 tonnes of powdered milk, or between 60-75 percent of total milk consumption of 400,000 tonnes a year.

President Leads Cabinet Meeting on Lebaran Preparations

2008-09-25T03:51:00.002+01:00

President Susilo Bambang Yudhoyono on Tuesday led a cabinet meeting to discuss preparations for the post fasting month or Lebaran festivities. "The main agenda (of the cabinet meeting this time) is discussing preparations to manage the activities and serve the needs of home bound Lebaran travelers in the next few weeks," the president said moments before the meeting at the presidential office here.

The head of state expressed hope that the government would manage everything related to the movement of home bound Lebaran travelers this year in a much better way than last year. "Last year, we did the job well. And this year, we hope, we can do it at least equally well as last year while expecting there will be improvements here and there across the country," he said.

For their part, the relevant government agencies would prepare proper steps according to their respective function to handle all problems, the president said. Tens of millions of people in the world`s largest Muslim country are expected to leave the many cities in which they have been working to travel to their respective home towns or villages to celebrate the Lebaran festivities with relatives or old friends. Also present at the cabinet meeting were Vice President Jusuf Kalla and all ministers of the United Indonesian Cabinet.

PT KAI Starts Carrying Passengers For Lebaran Holidays in South Sumatra

2008-09-25T03:36:00.002+01:00

State railway company PT.KAI in South Sumatra starts from September 21 carrying passengers to their hometowns for the Lebaran.

The trains to be used for this purpose are the Limek Sriwijaya, Rajabasa Express from Kertapati Station to Tanjung Karang and Sindang Marga Train also Srelo Train from Kertapati Station to Lubuk Linggau, said South Sumatra PT. KAI public relations, Darmawan here, Wednesday.

He said, besides the four trains, PT.KAI also prepared extra trains (KLB) known as Sapujagat Train, it would be operated if the available trains were not enough. On the last, the passenger transportation is still in normal state, which means there are no standing passengers from a total of 8,300 seats available, every body is seated.

Despite Dumping Charges, Indonesia and Turkey Stepping Up Cooperation

2008-09-25T03:09:00.003+01:00

Indonesia and Turkey are stepping up bilateral trade and economic cooperation amid accusations by Ankara that Jakarta has committed dumping practices. Indonesia and Turkey have agreed to meet their commitment to achieving a bilateral trade target of US$2 billion this year, the Foreign Ministry said in an official statement. The agreement was reached during the Seventh Meeting of The Indonesia and Turkey Joint Commission (ITJC) in Ankara over the weekend.

The meeting attended by Indonesian Trade Minister Mari Elka Pangestu and Turkish Justice Minister Mehmet Ali Sahin discussed trade and economic cooperation, besides Turkish charges that Indonesia had been dumping its rayon and polyester fiber products in Turkey. On the occasion, Indonesia, while promoting bilateral cooperation also lodged a protest against Turkish charges that Indonesia had been dumping its rayon and polyester fiber in Turkey.

"We told them we objected to their investigation of the alleged dumping practices. We noticed there were things against the standing procedures and we asked them to heed the matter," Trade Minister Mari Elka Pangestu said on the sidelines of a working meeting with the House of Representatives (DPR)`s Commission VI, which deals with trade affairs, here on Monday.

In spite of the protest, negotiations on other lines of business cooperation proceeded well and productively. The two countries adopted a 2009-2010 Roadmap to increase their bilateral trade and exchange investment assessment delegations in 2009.

On bilateral trade, both nations were believed they would book a trade value of two billion US dollars this year. Retno Marsudi, director general for American and European affairs of the Foreign Ministry, said that it was not impossible for the two nations to achieve the two billion target owing to the fact that at the end of 2007 bilateral trade between the two nations had reached 1.8 billion US dollars, or an increase by 127 percent from a year earlier. Both nations also agreed to encourage their investors to cooperate in investing in the energy sector such as explorations and production of hydrocarbons and other energy projects in Indonesia.

The program aims at inviting Indonesian businesses to conduct joint explorations of sea energy resources in Turkey and third countries. During the meeting Mari Elka Pangestu said that Turkey was one of Indonesia`s main trading partners. The volume of their two way trade totaled US$ 1.8 billion in 2007 with Indonesian exports to Turkey reaching 1.1 million dollars and imports 700 million dollars.

Marie Elka Pangestu and Turkish Justice Minister Mehmet Ali Sahin witnessed the signing of two memoranda of understanding on cooperation between Turkish Radio Television (TRT) and Indonesia`s Radio Republik Indonesia (RRI) as well as between the Postal Services Organization of Turkey (PTT) and Indonesia`s postal service PT POS Indonesia. They also agreed to expedite cooperation in technical matters such as the signing of MoU on agriculture and technical cooperation. In the meantime, Indonesian Ambassador to Turkey Awang Bahrain said the embassy had been organizing regular meetings with Turkish businesspeople of both nations and issuing a bulletin in an effort to promote Indonesia`s investment and trade potentials.

Dumping Allegations
The Indonesian trade minister also met with Turkish Minister for External Trade Affairs Kursad Tuzman to discuss bilateral trade issues, especially Turkish accusation that Indonesia had been dumping its textile products in Turkey. Indonesia lodged a protest against the Turkish dumping charges. "We lodged the protest against the Turkish Trade Authority," Mari Pangestu said. She said that the protest was lodged in a bilateral meeting between Indonesian and Turkish delegations during an Indonesian trade mission.

"They took notes of our objection and promised to take heed of the problem at hand. We have written them about all matters that were not in line with the standing procedures. We saw that their investigation was not in line with the standard procedures based the available data," she said. General Chairman of the Indonesian Textile Producers Association (API) Benny Sutrisno saw that the Turkish dumping charges against Indonesian synthetic fiber was unfair, because Turkey was not a producer of synthetic fiber. "Turkey is not a producer of synthetic fiber and this country is only a cotton producer," he said in response to the Turkish allegations.

Indonesia along with China and India had been accused of having dumped their polyester fiber in Turkey. As many as 22 yarn companies and three supporting companies in Turkey accused three Indonesian companies of dumping practices last year. The three Indonesian companies were PT. Polyssindo Eka Perkasa, PT. Indo Liberty Textile and PT. Yarn Manunggal Jaya. In February 2008, the Turkish Dumping Authorities had already investigated four companies in Indonesia.

Garuda Indonesia Resumes Direct Brisbane Bali Flights

2008-09-25T02:31:00.004+01:00

Garuda Indonesia will honour its commitment to the Queensland market by resuming services to Bali, three times a week, in time for the commencement of the Queensland state school summer holidays.

Effective 14 December, GA713 will depart Brisbane every Tuesday, Friday and Sunday morning, arriving in Bali early afternoon. GA712 leaves Bali just before midnight arriving early morning in Brisbane.

Since suspending direct Brisbane Bali flights early last year Garuda has continued to be proactive in restoring the leisure market to Bali including offering user friendly through fares with Virgin Blue. “It seems that Garuda Indonesia’s decision to continue supporting the Queensland market has proven worthwhile as, along with other Australian markets to Bali, it has grown significantly in the last twelve months”, said Mr. Poerwoko Soeparyono, Senior General Manager Australia/SWP.

“Bali is well and truly back on the map and we are delighted that, in less than two years, we are able to resume direct services to this popular holiday destination and thus honour our commitment made to Queenslanders in 2007. As the only full service carrier flying this route, Garuda Indonesia will offer a total of 869 seats per week nonstop to Bali utilising the wide bodied Airbus A330 aircraft.

An announcement will be made shortly regarding Garuda fares and arrangements for passengers, currently booked and ticketed on Garuda flights via Sydney. As usual, Garuda will remain competitive. The new Brisbane Bali schedules are expected to be accessible in reservations systems within the next few days and are subject to confirmation of slot times.

Indonesia and Finland to Cooperate in Fighting Global Warming

2008-09-24T09:43:00.003+01:00

Indonesia and Finland cooperate to fight global warming by planting trees in a forest within the area of the University of Indonesia (UI) in Depok, West Java, a statement recieved here Sunday.

"The activity will be held on Monday, September 22. Jakarta Governor Fauzi Bowo, Finnish Ambassador to Indonesia Antti Koistinen and UI rector Gumilar Rusliwa Somantri are scheduled to take part in the activity," an official of Findland`s Embassy in Jakarta Ivan Alidjaja said.

The activity, according to Alidjaja, is part of Planting Tree Global Day 2008 an event which will take place for 24 hours, starting from Tonga Island following the sun movement, trees will be planted in Asia, Europe, Africa and America. "Up to this moment, more than 1,100 schools in 13 countries had registered and committed to plant 300,000 plants.

In this 2008 program, Indonesia will participate for the first time," Alidjaja said. "The aim of the program is to increase people`s awareness of environmental issues and affirmed the importance of trees to fight global warming," he explained, adding the activity is also a symbol of Indonesia and Findland cooperation in forestry and education.

By the tree planting program in UI, Alidjaja added, Indonesia will take part in efforts to reach at least 1 million trees by the end of 2008. "The long term goal of the program is to plant 100 million trees all around the world before 2017," Alidjaja said.

Indonesian Firm to Sponsor Asian Beach Games

2008-09-24T09:20:00.002+01:00

Indonesian state oil company (PT Pertamina) said on Monday that it is willing to be one of the sponsors of Asian Beach Games (ABG) to be held from October 18-26 in Bali, Indonesia. With a limited number of sponsors, the ABG organizing committee had ever decided to decrease the budget, from 300 billion rupiahs (34 million U.S. dollars) to 200 billion rupiahs (22 million U.S. dollars) before Pertamina's sponsorship with 20 billion rupiah (2. 3 million U.S. dollars).

"We take the decision for adjusting our capability, yet we still maintain the standard of the Olympic council of Asia (OCA)," the chairperson of ABG organizing committee Rita Subowo told Xinhua on Monday.

"This event is first time, not only in South East Asia, but in the world as well. it is still not popular yet, we find it difficult in marketing," she added. Some 200 billion rupiahs channeled by the Government of Indonesia through the ministries of both sports and tourism, Indonesian state owned enterprises.

"The rest, about 100 billion rupiahs, will be funded by some private companies in Indonesia, excluding 20 billion rupiahs, which will be channeled soon from Pertamina," she said. The director of Pertamina Ari H. Soemarno and Rita Subowo signed an agreement on sponsorship grasped by Pertamina on Monday. The signing ceremony was witnessed by Indonesian Sport and Youth Minister Adhyaksa Dault. With the deal, Pertamina will become the prestige partner of ABG, the highest status of sponsorship of the first beach games in Asia on October 18-26 in Bali, Indonesia.