ASEAN Affairs Forum

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Special post about Indonesian-Nigerian Bilateral relations.

Nigeria-Indonesia Trade Volume Hits $2billion
Leadership Editors's picture
Mon, 04/02/2013 - 1:54am | EVELYN OKORUWA

Nigeria–Indonesia trade volume currently stands at about $2 billion, the Indonesian Minister of Trade, Mr. Gita Wirjawan, has said.

He spoke during the Nigeria-Indonesia bilateral trade meeting and business luncheon in Abuja on Saturday .

The meeting was attended by the Nigerian Minister of Trade and Investment, Mr.Olusegun Aganga; the Indonesian Ambassador to Nigeria, Mr. Sudirman Haseng; representatives of over 20 Indonesian companies, presidents of both Manufacturers Association of Nigeria (MAN), and Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, and captains of industry (NACCIMA).

“Indonesia is currently a trillion dollar economy with trade volume in Nigeria at about $2billion,” Wirjawan said.

However, Aganga said that both countries would work together to double the trade volume by 2015 and noted that Nigeria and Indonesia will come up with strategic and implementable action plans to ensure that both countries leverage the cordial bilateral trade relationship to boost trade and increase Foreign Direct Investment (FDI).

Aganga said, “It is good to have country-to-country discussions and Bilateral Agreements but at the end of the day, most of these things come down to the people and how they put discussions and agreements into action. The Indonesian Minister of Trade and I have agreed that our technical teams will put together a strategic plan for Nigeria and Indonesia which we will implement going forward.

“In terms of trade, we have already set targets for ourselves in terms of where we want to be and what we want to achieve. One of our major objectives is to double the bilateral trade between the two countries by 2015, particularly , when we have met and have bilateral discussions and agreements. We will work together to make sure that this happens.”

The minister said that they were working together to create a vehicle that would make it easier for the private sector of both countries to flourish and co-invest in different sectors of the economy.

Aganga said, “I see this meeting as a symbiotic relationship between the two countries. They have some similarities with Nigeria in terms of natural resources in agro- commodities and oil and gas. One of the major decisions taken by the Indonesian Trade Minister and I is that we will create a vehicle that will make it easier for the private sector of both countries to flourish and co-invest in the different sectors of the economy.

“In line with our Industrial Revolution Plan, one of the things that we want to do in terms of growing the value chain, is to identify areas where we have competitive and comparative advantage so that we can attract more investment into these areas in order to create jobs, generate wealth and transform our economy”

Speaking during the event, the Indonesian Minister of Trade, His Excellency Gita Wirjawan, said that a Preferential Trade Agreement between Nigeria and Indonesia would soon be concluded as part of efforts to increase trade and investment between the two countries.

Nigeria-Indonesia Trade Volume Hits $2billion | Leadership Newspapers

Nigeria: FG, Indonesia Sign MOU on SMEs
3 February 2013

The federal government in Abuja yesterday signed a Memorandum of Understanding (MoU) with the Indonesian Government on technical cooperation for the development of Micro, Small and Medium Scale Enterprises (SMEs) in Nigeria.

Alhaji Muhammad Umar, Director-General, Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) signed on behalf of Nigeria.

His counterpart, Mrs Euis Sedah, Director-General, Small and Medium Scale Industries (SMI) Directorate of Indonesia, signed on behalf of her country.

Umar said, with the MoU, Indonesia would exchange technical know-how with Nigeria on cassava processing.

While describing the partnership as historic, the director-general believed that it would open a new vista in the bilateral relationship between the two countries.

"There is no doubt that Nigeria will need the assistance of Indonesia in the proposed conversion of industrial parks to cluster parks and in the revamping and development of existing Industrial Development Centres (IDC)," he said.

The director-general said the expectation of Nigerians was that Indonesia would invest in Nigeria's textile manufacturing sector so as to produce in Nigeria its fabric, popularly called 'battik,' which was in high demand.

"This will help in the actualisation of the Federal Government's goals in job creation.

"We also expect to step up our cooperation through sharing of experience, training, commercial activities and technology transfer among small and medium entrepreneurs of both countries."

He said the MoU between SMEDAN and the directorate of SMI of Indonesia offered tremendous business opportunities, especially for Nigerian entrepreneurs.

He, therefore, urged the Nigerian businessmen to leverage enhanced bilateral relations to revamp the nation's economy.

In his remarks, Mr Sudriman Haseng, Indonesian Ambassador to Nigeria, said the cooperation would strengthen relationship between the two countries.

"We are both regional leaders, the cooperation would increase the benefit of the two nations in their relationship with other countries," he said.

While noting that small and medium entrepreneur development is key to economic development of any country, the envoy called on the Federal Government to focus more on strengthening the SMEs' sector in the country.

NAN

allAfrica.com: Nigeria: FG, Indonesia Sign MOU

Indonesia weighs Nigeria’s 4 million-hectare land offer
The Jakarta Post, Jakarta | Headlines | Sat, February 23 2013, 12:29 PM

President SBY of Indonesia with Nigerian President Goodluck Jonathan.

The Indonesian government is still weighing the offer from the Nigerian government to develop agricultural businesses in the West African country, an official of the Indonesia and Commerce (KADIN) says.

“We are currently studying the offer. This is going to be a government-to-government decision,” Mintardjo Halim, the executive of the chamber’s African desk said in Jakarta on Friday.

Mintardjo said that as the study of the investment would continue until March, he could not yet disclose what kinds of the plantations would be developed, and how much the investment would be needed to meet the Nigerian government’s offer.

He, however, added that considering both countries shared the same climates, Indonesia could develop crude palm oil (CPO) plantation in the West African country.

Nigeria is seeking foreign partners including Indonesia to develop the country’s palm oil plantations.

The director general for export promotions at the Trade Ministry, Gusmadi Bustami, said early this week that Nigeria had offered 4 million hectares of land to Indonesia which could be used for CPO or other plantations. He said the developing a CPO plantation in the country would be quite promising given the country’s high demand for cooking oil.

At present, Nigeria imposes an import duty of up to 30 percent on CPO products. Developing CPO plantations in the country would enable CPO producers to avoid the high import duty, he said.

Gusmadi said that the Indonesian government would also ask for an import tariff reduction during preferential trade agreement (PTA) talks to be conducted in the second-half of this year.

“The country has a potential for palm plantations, though we don’t rule out any other crops. There are varieties of crops we can grow there and there are also possibilities that we won’t utilize the lots for growing only one kind of commodity,” Mintardjo said.

“But still, we also have to see first whether or not this investment will benefit both parties and fetch a win-win solution for us.”

Investing in Nigeria’s agricultural sector should be part of a bilateral trade cooperation agreement with Indonesia, which could include the lowering of import tariffs and the cuts in tax and trade barriers.

At present, the Nigerian government imposes high import duties on a number of goods in order to protect the domestic industry amid concerns over high unemployment rates. Indonesian exporters are eligible for exemptions, but they could face lengthy procedures to get the facility, he added.

“This investment will help them reduce reliance on oil production through our technology and expertise,” Mintardjo said.

Nigeria, Africa’s top oil producer with 160 million population, is seeking investors in various sectors to reduce its dependence on oil, which supports its 70 percent economy.

Slowdown in the global economy, on the other hand, has prompted Indonesia to no longer rely on its big export destinations — such as the United States, Japan, and the European Union — and shift to other growing markets, including countries in Africa.

Nigeria has become a destination for investment from Indonesia, with around 11 local firms having already entered certain sectors such as food and beverage, petrochemicals and pharmaceuticals.

Bilateral trade between the two emerging economies reached US$2.1 billion in 2011 and during the January-October period last year it totaled $2.7 billion. The trade volume is expected to reach $5 billion by 2015. (aml)

Indonesia weighs Nigeria

It's to be noted that back in 1960 Nigeria produced half of the world palm oil, now it covers around 7%

 

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Indonesian Economy Entering a 'Golden Age': KEN
Yohannie Linggasari & Khara Gracia | February 26, 2013


Rising political turmoil has cast doubts on Indonesia’s economic growth, but business leaders and government officials urged players not to worry as the country’s economy is showing few signs of weakness.

The naming of Anas Urbaningrum, Democratic Party chairman, and Prosperous Justice Party (PKS) chairman Luthfi Hasan Ishaaq as suspects in separate graft cases (both have resigned), as well as Golkar Party patron Aburizal Bakrie’s rift with British financier Nathaniel Rothschild, have muddied the waters ahead of the 2014 election.

Anas was named a suspect after he was accused of accepting bribes on in the Hambalang sports center scandal, and Luthfi was declared a suspect in a beef import graft case. Meanwhile, Bakrie is trying to reclaim prized coal asset Bumi Resources.

But tycoon Chairul Tanjung, chairman of government think tank the National Economic Committee (KEN) and the recently established Indonesia Forum Foundation, is calling for calm.

“We can feel that this year, the political atmosphere is hotter than it was ahead of the 2009 election. Business players and the bureaucrats must remain calm and not be affected by the current condition,” Chairul said at the new foundation’s inauguration on Monday.

The cases have raised questions about whether major parties could maintain a pro-business climate and ensure that Indonesia meets its projected growth rate of more than 6 percent.

Bank Indonesia governor Darmin Nasution said that despite rising tensions the Indonesian economy remained intact. However, he warned that the country should start becoming a net exporter if it wanted to break into the world’s top seven economies by 2030.

“Indonesia’s economy is stably growing even though it is not the fastest-growing. We are more stable than India and China. Our economy can withstand outside impact,” Darmin said.

“Indonesia is entering its economic golden age but we tend to underestimate ourselves. Our economy is more mature now,” he added.

The economy grew by 6.2 percent last year as domestic consumption offset a current account deficit of $24 billion, compared with a surplus of $1.7 billion in 2011.

A report by the Boston Consulting Group last December said that Indonesia was an “extremely active” market for mergers and acquisitions, with a total of $7 billion in deals last year, and the number is expected to continue to rise.

Darmin said that Indonesia should capitalize on its growing economy by reviving sluggish industries.

“Our industries have been sleeping for the last 10 to 15 years. It’s time that we start to pay more attention on how to revive our industries,” he said.

Indonesia was a major industry player in the region in the 1990s, but the severity of the 1997-98 monetary crisis turned Indonesia into an importing country.

Sandiaga Uno, who controls Saratoga Capital, one of Indonesia’s largest private equity funds, said that business players must not be caught unprepared.

“Our economy is growing but so is social disparity. We have the means and opportunity to become a top seven economy by 2030, but also we need to share that means and opportunity by creating entrepreneurship opportunities for everyone,” he said.

Indonesian Economy Entering a 'Golden Age': KEN | The Jakarta Globe





Danish trade minister to seek new opportunities in RI
Linda Yulisman, The Jakarta Post, Jakarta | Business | Tue, February 26 2013, 11:02 AM


Danish Trade and Investment Minister Pia Olsen Dyhr is slated to lead a business delegation to Indonesia at the end of this week, aiming to explore business opportunities and tighten commercial links with local counterparts.

Danish Ambassador to Indonesia Martin Bille Hermann said that among the top items on the agenda would be an event announcing the Danish government’s new market strategy for Indonesia, which Denmark considers an increasingly important partner in the years ahead.

“What is clear is that there is potential to increase the commercial relation between our two countries,” Hermann told a press briefing in Jakarta, on Monday.

Exports from Denmark to Indonesia have been traditionally lower than similar European countries like Sweden and Germany. In 2011, Indonesia was the 60th biggest export destination for Danish firms. According to Danish statistics, exports expanded substantially by 70 percent to US$180 million last year, which is a positive sign for achievable growth in the future.

In terms of investment, Denmark also still lags behind other European countries, investing only $100 million in three projects last year, according to data at the Investment Coordinating Board (BKPM).

During the three-day visit starting on Sunday, the trade minister is scheduled to visit Poglar pumping station, which utilizes Danish energy-efficient technology, in West Jakarta with Jakarta Governor Joko Widodo and will announce a new cooperation program on the environment, energy and climate worth $50 million with National Development Planning Minister Armida Alisjahbana.

The minister’s visit will mark heightened efforts in the coming years to strengthen bilateral economic relations, according to Hermann. “There is a match between some of the challenges and opportunities in Indonesia and what are traditional Danish strengths,” he said, adding that Danish businesses would try to tap into Indonesia’s impressive economic growth.

They might focus on six specific sectors, including infrastructure, Hermann said.

Denmark, a member of the European Union, is one of the 20 richest countries in the world based on income per capita, thanks in part to its sizeable shipping industry and relatively significant share of North Sea oil reserves.

The Nordic economy, which relies largely on strong domestic consumer spending and investment, has recovered from recession quite quickly, growing by 1 percent per quarter in 2011, outpacing the 0.2 percent average in the 17-nation eurozone.

It is the first country in the world to be committed to leading the transition toward a green growth economy entirely non-reliant on fossil fuels by 2050 and this has been supported by a clear policy framework. Since 1980, the country has become a global leader in the development of new sustainable technologies.

Indonesian Association of Urban Planners secretary general Bernardus Djonoputro said at the briefing that Danish firms had a well-known reputation in cutting-edge innovation in green technology, which Indonesia could benefit from as it grew its economy through massive expansion in wide-ranging areas, especially infrastructure.

 

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Geothermal Energy To Be Priority For Power Plant


JAKARTA—The Ministry of Energy and Mineral Resources still will prioritize the development of geothermal energy for power plant as early stages of new and renewable energy usage in Indonesia.

General Director of New Energy and Renewable Energy and Energy Conservation Rida Mulyana said a geothermal well can be used for large capacity power plant. Therefore, the Ministry will prioritize the utilization of new energy is widely available in mountains area.

“For the beginning, we will prioritize the geothermal development. A geothermal wells can be used for power plant with hundreds megawatt capacity,” he said in Jakarta, Tuesday.

Rida said related to those things, MEMR is finalizing regulation concerning the geothermal usage and electricity feed in tariff from geothermal power plant. Since last year electricity feed in tariff from geothermal power plant set at US$0.1 – US$0.18 per kilowatt hour (KWH).

The imposition of electricity feed in tariff is adjusted to locations, such as in Sumatra set at US$0.1 per kwh in the high voltage and US$0,11 per Kwh at medium voltage. In Java, Madura and Bali set at US$0,11 per Kwh for high voltage and US$0,12 per Kwh for medium voltage.

In South Sulawesi set at US$0,12 per KWh for high voltage and US$0,13 per KWh for medium voltage. Then in North Sulawesi set at US$0.13 per KWh for high voltage and US$0.14 medium voltage. While West Nusa Tengara and East Nusa Tenggara set at US$0.15 per KWh for high voltage and US$0.16 per KWh for medium voltage.

Rida also confirmed that geothermal usage will not damage environment and conservation forest area. Because the geothermal utilization is only done by drilling in the geothermal reserves area for immediately use.

As is known, the geothermal utilization is categorized as mining activity, so it requiring the same license as mineral mining activity.

Therefore, the MEMR is working to fix it by removing geothermal utilization activity from mining sector.

In addition to fix the regulations, the MEMR is also working to harmonize forest conservation Law in Forestry Ministry. This is done to accommodate the utilization of geothermal location and renewable energy, mostly in the conservation area.

PT Perusahaan Listrik Negara (PLN) President Director Nur Pamudji previously said inclusion of geothermal utilization as mining activity can hinder its utilization. Because the majority of geothermal energy in this country are located in forest area.

Until now, the geothermal and hydropower utilization only 12% of the entire power plant, and in 2020 it’s expected that geothermal and hydropower can take a portion of 17%. Geothermal energy itself is very promising to be used as alternative energy in the country, because Indonesia has geothermal resources as much as 29 gigawatt (GW). (aph)

Geothermal Energy To Be Priority For Power Plant - Bisnis.com

 

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Indonesia's Pertamina Waits For Approval In 4 Overseas Block Acquisition
Riendy Astria, Arif Budi Winarto
February 27, 2013 21:46

JAKARTA: PT Pertamina (Persero) is waiting for final decision of oil and gas block acquisition in four countries. Pertamina has signed a share purchase agreement with four countries.

Pertamina President Director Karen Agustiawan said the company expects acquisition of five oil and gas blocks. However, Petrodelta’s acquisition plan of 32% shares which owned by the US oil and gas company, Harvest Natural Resources Inc, is canceled.

"Harvest’s shareholders rejected the acquisition proposal due to commercial reason," she said in a press conference after Pertamina’s Annual General Shareholders Meeting, Wednesday (27/2).

After Harvest refusal, she explained, Pertamina is still waiting for the decision of other four oil and gas blocks. Although reluctant to mention in detail, Karen had explained that one of the proposal is acquisition of ConocoPhillips’ subsidiaries, a multinational oil and gas from the United States that controls Block 405a in Algeria.

As is known, Pertamina signed an acquisition agreement of ConocoPhillips Algeria Ltd, a subsidiary of ConocoPhillips, which controls Block 405a in Algeria. The acquisition value is approximately US$1.75 billion or equal to IDR16, 8 trillion. Oil and gas of the block will be prioritized to meet domestic needs.

Pertamina will get some additional oil production to 35,000 barrels per day in 2013 from current production as many as 23,000 barrels per day.

Pertamina is also ready to work closely with Sonatrach, the Algerian NOC companies and another partner company in Block 405a in order to maximize oil production from the block.

Based on ConocoPhillips press release, a US$1.75 billion (IDR16, 8 trillion) agreement has been signed in Jakarta. The acquisition agreement is subject to preemption right by ConocoPhillips’ partner in Blocks 405a and approval of the Algerian government. (11/t09/aph/tw)

 

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Vietnam to host 19th ASEAN Economic Ministers’ Retreat

VietNamNet Bridge – Vietnam will host the 19th ASEAN Economic Ministers (AEM) Retreat and related meetings from March 6-9 in Hanoi.
This was announced at the Ministry of Industry and Trade (MoIT)’s press briefing in Hanoi on February 27.
The event will be attended by the ten ASEAN Economic Ministers, the ASEAN Secretary General and the EU Trade Commissioner, along with researchers, representatives from the business community, and ASEAN and EU media agencies.
The Retreat is one of many contributions from Vietnam to the establishment of an ASEAN Economic Community (AEC) by 2015.
Economic integration is the spearhead of ASEAN cooperation and also the area in which ASEAN has achieved great success.
The 19th ASEAN Economic Ministers’ Retreat is an important annual event of ASEAN economic cooperation which gives participants the chance to discuss essential initiatives to boost regional economic cooperation and set incremental goals towards the establishment of the ASEAN Economic Community (AEC) by 2015.
As the 2015 deadline approaches, greater effort is required by members to turn ASEAN nations into a single market and production base, a highly competitive economic region and a region of equitable economic development with full integration into the global economy.
Within the framework of the 19th AEM Retreat, the 12th Consultative Meeting between ASEAN Economic Ministers and the EU Trade Commissioners will be held on March 9. The participants will discuss the programs and initiatives to promote economic cooperation and trade and investment relations between the two regions. Vietnam is well placed to contribute to the dialogue as it is currently the coordinating country for ASEAN-EU economic cooperation.
The 3rd ASEAN-EU Business Summit will also be held on March 9, offering an opportunity for regional policy makers and the business community to compare notes on inter-sectoral issues and share business experience to tap the full potential of trade and investment between the two regions.
ASEAN and the EU are Vietnam’s most important trading and investment partners, with ASEAN currently standing as Vietnam’s third largest export market after the US and EU. Conversely, ASEAN is the second largest supplier of goods to Vietnam, behind China.
Vietnam’s trade turnover to ASEAN member countries reached more than US$38 billion in 2012. Meanwhile, the EU is the second largest export market and is a major investor in Vietnam.
As the coordinating country for ASEAN-EU economic cooperation and the host of the 19th AEM Retreat and Related Meetings, Vietnam expects to make constructive contributions to the ASEAN economic integration process, as well as to the strengthening of ASEAN-EU trade and investment.
Source: VOV
Tags:Vietnam, 19th

 

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Telkom Indonesia Eyes 5 Countries For Expansion

JAKARTA: PT Telekomunikasi Indonesia Tbk eyes five countries for this year expansion target. The countries are Myanmar, Saudi Arabia, Macau, South Korea, and Taiwan.

Director of Enterprise and Wholesale Muhammad Awaluddin said Telkom is ready to participate in a license tender as a telecommunications provider in Myanmar. He refused to detail the matters.

Previously, through a press conference, Telkom stated that it has submitted expression of interest letter to Myanmar Government.

Telkom is currently awaiting the Government's examination of the tender document as EoL submission schedule is extended to February 8 from January 25.

After Myanmar, Awaluddin said, Telkom will soon prepare for expansion to four other countries. However, the Company has not determined the kind of business models to be built there.

Telkom earlier has expanded to Malaysia, Singapore, Hongkong, Australia, and Timor Leste.
For Timor-Leste, through the brand Telkomcel, Telkom get a license as cellular service providers, while in Hong Kong, the company works as Mobile Virtual Network Operator (MVNO) service operator.

Furthermore, in Australia, through its subsidiary Infomedia, Telkom implements Business Process Outsourcing (BPO) contact center.

“For the next four countries we are studying the markets, regulations and the type of technology we can apply there,” said Awaluddin after launching IndiPreneur on Monday (02/11). (T05/TW)

G20 appoints Indonesia to co-chair Study Group Financing for Investment

REPUBLIKA.CO.ID, JAKARTA - G20 finance ministers meeting in Moscow, Russia, appoints Indonesia and Germany to co-chair Study Group Financing for Investment (SG-FI). The group will cooperate with World Bank, OECD, IMF, FSB, UN, UNCTAD and other international organizations to determine the future financing on infrastructure.

"Indonesia and Germany will report the development in the study group to finance ministers and central bank governors' meeting. It will become G20 commitment to be enacted on St Petersburg Conference next September 5-6, 2013," Indonesian Ministry of Finance stated on the press release on Monday.

During the two-day G20 forum, Indonesia was represented by Minister of Finance Agus Martowardojo and Governor of Bank Indonesia Darmin Nasution. The release explains that the target of the study group is to cooperate with Organization for Economic Co-operation and Development (OECD) to generate main principles of long term investment financed by investor institutions.
G20 finance ministers meeting have pledged to crack down on tax evasion by multinational companies. The final communique said members were determined to develop measures to stop firms shifting profits from a home country to pay less tax elsewhere. The

UK, France and Germany were the main movers behind the drive.
The communique, as cited from BBC, also said members would refrain from devaluing their currencies to gain economic advantage, amid fears of a new "currency war". The fears had been sparked by Japan's recent policies, which have driven down the value of the yen, aiding its exporters.

 

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RI turns to the sun to widen electricity outreach

Residents check the panels of a new solar power plant in Bangkled village in Bangli, Bali. The plant was inaugurated by Energy and Mineral Resources Minister Jero Wacik last week. (Antara/Nyoman Budhiana)



The future source of electricity in this country lies in space, millions of kilometers away, and not below ground where coal and oil are treasured, says Energy and Mineral Resources Minister Jero Wacik.


The newly operated electricity solar power plant in Karangasem has a 1 megawatt (MW) capacity and has cost approximately Rp 26 billion (US$2.7 million) to build. The 1.2 hectare electricity complex includes a unit of an on-grid main electricity plant of 1 MW capacity, as well as six units of off-grid plants each with a 15 kilowatt capacity.

“This power plant might only have 1 megawatt capacity, but this is just the beginning. We will build solar power plants with bigger capacities — there will be power plants with capacities of 5, 10 or even 50 megawatts next year, or afterward,” he said in a ceremony attended by top officials at the ministry, as well as local leaders from Bali.

The government plans to earmark Rp 400 billion this year to build solar power plants with various capacities in more than 100 areas throughout the archipelago, according to the minister.

Jero argued that there was a need for Indonesia to reduce its dependency on coal-powered electricity plants, and instead prioritize the development of power plants that used non-conventional sources of energy.

The minister pointed out the price of electricity generated from solar power plants was only $0.2 per kilowatt hour (kwh), cheaper than the $0.4 per kwh in coal-fired power plants that used subsidized fuel in their operations. “Oil is now already expensive — for too long, we have been pampered by oil,” he said.

The Indonesian government has found it difficult to widen electricity outreach in the country, especially in areas outside of the infrastructure-ready Java. Only 64.5 percent of Indonesia’s total population of 230 million have access to electricity, according to data from the World Bank.

At the moment, the country still heavily depends on coal-fired power plants, considered as the enemy of environmental groups mainly due to generated pollution, as the plants use both coal and oil in their
operations.

There are 17 coal-fired plants with almost 3,000 MW of power still under construction. Ten of them, mainly in Kalimantan and the eastern part of the country, should be completed this year, adding 1700 MW of supplies.

The figure was relatively insignificant compared to the 48 MW solar power plants that the ministry started building in 177 locations throughout Indonesia last year.

Nevertheless, Rida Mulyana, the ministry’s director general for renewable energy, said that solar power plants, though their capacities were limited, should be seen as an alternative for expanding electricity outreach in remote, mountainous areas given that coal-fired power plants were difficult to build.

Solar power plants are especially useful in tourist areas where electricity is required without generating excessive pollution or harming the surrounding environment, say observers.

The government, for example, already built solar power plants in six tourist areas in 2011: Bunaken in North Sulawesi, Wakatobi and Tomiya in Southeast Sulawesi, Banda in Maluku, Raja Ampat in Papua, and Derawan in East Kalimantan.

 

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Competition in Indonesian people's wealth management heats up

Privileged: A priority banking lounge for premium customers at a Standard Chartered branch in Jakarta. As the number of wealthy people in Indonesia rises, banks are looking to make money through managing people’s wealth.


Competition in the wealth management business has recently intensified, with major local banks giving more attention to the country’s growing middle-class to maintain their growth.

Banks such as ANZ Indonesia, Bank Negara Indonesia (BNI), Bank Mandiri and Standard Chartered Bank have designed their own investment packages to lure customers from the country’s growing middle-class to use the banks’ wealth management services.

In addition to the increase in investment options, the banks have also placed more resources and marketing effort into expanding their wealth management services.

ANZ Indonesia vice president director and consumer banking head Ajay Mathur said the demand for wealth management services had grown as more people sought other forms of investment options, beyond time deposits or savings, to get higher returns.

Banks should be more creative and offer investment products and services, as unlike in Western countries, the Indonesian middle-class focused more on capital gain than on capital preservation, Mathur said.

“Here, customers are seeking greater returns on every rupiah they spend, so they are seeking products that give them that kind of return,” he added.

Under its signature priority banking program, ANZ offers investment products such as bonds, mutual funds and insurance to its clients whose annual income starts from US$50,000. Mathur said the bank cooperated with its Australian partner in determining and creating investment products and services to its Indonesian customers. He said with its Australian connection, the bank could, for example, provide more reliable advice related to investing in the Australian dollar.

ANZ Indonesia’s priority banking and wealth management services currently contribute to about 30 percent of the bank’s total revenues. In 2013, it aims to record a 35 percent growth in its wealth management by launching new products and collaborating with a new investment management firm.

According to a recent report by global consulting firm McKinsey, the financial services industry in Indonesia, specifically savings and investments, is expected to become the fastest-growing segment, with double digit growth between 2010 and 2030.

And as household income increases, as does the share of income that people spend on discretionary goods and services, including savings and investments.

BNI is also increasing its marketing efforts to expand the bank’s wealth management services.

The bank’s deputy head for consumer and retail product management, Teddy Atmadja, said the bank would open more executive lounges in the country’s major airports to tap into the country’s growing middle-class.

By opening more executive lounges, the bank’s customer service managers would have the chance to speak to more affluent people about a wide range of wealth management services provided by the bank.

“So far, government bonds, equity funds and fixed-income funds are three investment products that are most preferred by customers,” he said.

To ensure its pool of potential clients, the bank would also tap into its developing affluent segment of younger and technologically savvy customers. “We need to nurture the younger clients by providing attractive products and easy access to our financial services,” he said, adding that the bank’s state-owned enterprise status provided leverage as it offered a sense of financial assurance to its would-be customers.

BNI expects a double increase in revenues from its wealth management services to about US$ 100 billion by intensifying services to high-end clients through its Emerald priority banking service.

Like BNI, British-based Standard Chartered Bank is also targeting young professionals to expand its business by holding annual wealth management seminars in several cities. According to Standard Chartered’s wealth management general manager Lanny Hendra, young professionals have enough savings to invest and are more financially literate.

“For the last several years, we’ve seen an increase in the number of young clients within our customer base, including the children of our more advanced customers. All of them are already using investment as a way to prepare their futures,” she said.


Contacted separately, Bank Mandiri, another state-owned bank, expects the growth of high-net-worth individuals in the Asia Pacific region to impact positively on its priority banking and wealth management businesses.

Mandiri senior vice president for mass banking Riza Zulkifli said the bank reshaped its wealth management strategy last month by increasing customers’ minimum balance benchmark to Rp 1 billion from the previous Rp 500 million for each client. Given the increasingly fierce competition, Mandiri would manage its priority customers personally, so that they would increase their share of wealth, he wrote in email sent to The Jakarta Post.

This year’s competition will even be tighter, with Citibank trying to re-secure a strong foothold in the business. Citibank retail investment and consumer treasury director Harsya Prasetyo said that the bank expected to see a minimum of 15 percent growth in the wealth management business now that the Bank Indonesia (BI) sanction had been lifted.

In 2011, BI forbade Citibank from acquiring premium customers for a year following an embezzlement scandal involving one of its customer relationship managers, Malinda Dee.

Harsya said Citibank was excited to acquire new Citigold clients and that the bank was developing a new acquisition strategy, which would involve new products and new partnerships with new investment firms.

 

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Indofood.co Boosts Stake in China Minzhong to Almost 30 Percent

Indofood Tower

Indonesia’s food production Indofood Sukses Makmur has announced that it has raised its stake in China Minzhong Food Corporation Limited from to almost 30 percent of the total issued share capital.

In a press release obtained in Jakarta on Tuesday, Indofood said that the increased stake was reached through the acquisition of 94.2 million shares from Tetrad Ventures in Singapore for S$1.12 per share on Thursday. The company now has a 29.33 percent stake, up from its original 14.95 percent.

“As a leading total food solution company with operations in all stages of food manufacturing, CMFC’s integrated cultivation and processing capabilities provide a strategic fit to our business development,” Indofood president director and CEO Anthoni Salim said.

Anthoni said that with the higher stake, Indofood could leverage Mizhong’s business model, technology and expertise to strengthen its supply chain and expand its product portfolios.

“We believe that this strategic alliance will be mutually beneficial to both companies,” he added.

Lin Guorong, CMFC executive chairman and chief executive officer, said that the two companies have identified many potential synergies. He cited strategic cooperation in the supply chain and product distribution in the fast moving markets of China and Indonesia.

“Indofood’s recent share-holding acquisition in CMFC represents a vote of confidence in the long-term prospects of the company and the strategic alliance would bring forth the next stage of the company’s growth and development through broadening of the market exposure in the future,” Lin said.

Indofood operates four complementary strategic business groups— in consumer brand products, wheat flour and pasta production, agribusiness and distribution.

CMFC is an internationally accredited integrated vegetable processor in China with distribution to 26 countries. It is publicly listed on the Main Board of the Singapore Exchange Securities Trading Limited.

Indofood Boosts Stake in China Minzhong to Almost 30 Percent | The Jakarta Globe

 

[nufix]

Jakarta to Replace Billboards With LED Screens
SP/Deti Mega Purnamasari |

Grand Indonesia Tower in Jakarta with 60,000 S.F. of LED


The Jakarta administrative said that it would no longer issue permits for new billboards as part of plans to clean up the capital.

“Eventually we will not allow any new billboards. We want to stop it and we will not issue new permits,” Jakarta Deputy Governor Basuki Tjahaja Purnama said on Wednesday. “If the advertisers want to promote their products, they can put the ads on buses.”

Basuki said Jakarta’s ubiquitous billboards would be replaced by light-emitting diode (LED) screens. He said the Jakarta administrative would provide free LED screens, with advertisers needing only to submit their films to be displayed on the screens.

“We will provide the LED screens and people can use them for free if it’s needed, they just need to prepare their films, just like the one at Taman Anggrek [mall],” he said.

The city administrative would be more selective in managing the outdoor advertisements, he added.

For the capital’s current billboard advertisers, the banners will remain for the length of their permits, but will not be renewable.

Basuki said the LED screens would only be placed in certain places, such as at bus stops, to keep the city neat and orderly. He said the city administrative would begin talks with advertising agencies to execute the plan.

JKGB @2013

 

[Viet]

nice pic of the tower at night

 

[Malaya]

Palace says Sabah standoff not a stumbling block to ASEAN integration
By: Philippine News Agency
March 6, 2013

The regional grouping agreed on this last year during a summit in Cambodia to realize the ASEAN Community by 2015.

President Benigno Aquino III and Malaysian Prime Minister Najib Abdul Razak have been in touch with each other on the Sabah crisis and both are working to resolve the issue at the soonest possible time, Presidential spokesman Edwin Lacierda said in a press briefing in Malacanang Tuesday.

“Hindi po magiging sagabal ito [Sabah]. Nakita natin at the highest level, nag-usap na si Prime Minister Najib at saka ang Pangulong Aquino. Hindi namin ito nakitang isang obstacle,” Lacierda told reporters.

Lacierda said the administration doesn’t believe the Sabah issue would be an obstacle to the ASEAN's goal of achieving a single community by 2015.

The President’s perspective is much broader and he cares not only for the 180 people holed up in Lahad Datu, the Palace spokesman said.

“He cares not only for the 800,000 Filipinos in Sabah, he also has to be concerned with the interest of the 95 million Filipinos here in the Philippines. We have a national interest to protect and to promote.”

The ASEAN Community will be based on three pillars, namely, a security community, an economic community and a socio-cultural community.

Palace says Sabah standoff not a stumbling block to ASEAN integration - InterAksyon.com

 

[Reashot Xigwin]

Belarus and Indonesia plan to create joint nanoproduct.

This was stated today in Minsk by the Deputy Chairman of the Presidium of the National Academy of Sciences Sergei Chizhik. According to preliminary information, the countries will produce carbonic, metallic and ceramic nanoparticles. And the project with Vietnam is already prepared for implementation: Belarusian-Vietnamese atomic microscopes will appear on the market soon. Several Arab and Asian countries are also ready to cooperate with Belarusian scientists. This is explained by the fact that Belarus already has competitive nanoproducts which are in demand on the world market.


Belarus, Indonesia eager to cooperate in nanotechnologies

(Nanowerk News) Belarus and Indonesia plan to implement projects involving the creation of nanotechnology products. The information was released by Mr Sergei Chizhik, Deputy Chairman of the Presidium of the National Academy of Sciences of Belarus, on 5 March, BelTA has learned.
Some time ago the official visited Indonesia. During the trip the possibility of cooperation between Indonesian and Belarusian organizations in the area of nanotechnologies was discussed. The possibility of working together to make carbon, metal, and ceramic nanoparticles was considered. “Nanotech is one of the fields where we can find partners abroad,” underlined Sergei Chizhik.
Belarus also plans to implement a project with Vietnam. The project involves the production of atomic force microscopes. Apart from that, several Arab countries are ready to cooperate with Belarusian scientists.
Sergei Chizhik also mentioned the creation of a center for transfer and commercialization of nanotechnologies in Belarus. In his words, the center is part of the concept for developing the nanotech industry in the country but there is no need to accelerate the creation of the center because it is necessary to upgrade nanotech manufacturing standards in the country first. Nanotech industry development in Belarus is one of the most important areas. All the modern electronics uses nanoscale technologies. It is remarkable that healthcare and the pharmaceutical industry are moving in the same direction, too, he said.
Mr Dmitry Krupsky, Head of the Science and Innovation Policy Office of the Economy Ministry, remarked that the fifth technological paradigm has only ten years at most to live. The development of nanotechnologies will be the key part in the sixth technological paradigm. It is one of the reasons behind the adoption of the concept to develop the nanotech industry in Belarus and the establishment of a relevant association founded by 18 organizations. At present eight organizations of the National Academy of Sciences of Belarus have specialized labs and sections to make nanotech products. Six organizations of the Industry Ministry and nine small businesses also specialize in nanotechnologies in Belarus.
There are plans to set up an interagency council to develop the nanotech industry under the Council of Ministers in the near future. Apart from that, nanotech producers are supposed to be granted a 50% income tax privilege.
Source: BelTA

Read more: Belarus, Indonesia eager to cooperate in nanotechnologies

 

[Rechoice]

Honeywell partners with PetroVietnam University to serve South East Asia

For this collaboration, Honeywell Process Solutions will provide the full suite of equipment – both hardware and software – that will be used in the curriculum.

The College is located at PetroVietnam University, where thousands of students are expected to go through its courses over the next three years.

“I believe the college will be a great resource for Vietnamese students,” said Jose Simon, Director - Global Service Operations, Honeywell Process Solutions.

“We have been working closely with PetroVietnam to provide inputs to the curriculum so that students who enroll will be equipped with all the necessary skills to cover every aspect of maintaining a safe, reliable and efficient plant.”

Developed with more than two dozen standard and customised courses, the Honeywell Automation College will cater to both undergraduates in process and chemical engineering and experienced engineering professionals, including plant operators, maintenance technicians, implementation engineers, system administrators and management.

As part of the training, students at the college will also gain hands-on experience with Honeywell process automation solutions such as the Experion Process Knowledge System and Safety Manager.

Pictured above (L-R): Mai Trang Thanh (Honeywell Vietnam President); Tran Van Hoa (GM Training and HR, PetroVietnam); Jose Simon (Global Director of HPS Lifecycle service); Le Phuoc Hao (Rector, PetroVietnam University); Hoang Hung (Vice Rector, PetroVietnam University).

The college will enable professionals to maximise the value of their Honeywell products, and is integrated with other Honeywell Automation Colleges in 50 cities around the world, offering students the same global training environment provided to Honeywell’s customers and employees.

“As a leading state-owned economic enterprise, PetroVietnam manages all projects and operations related to oil and gas exploration, production, storage, processing, transportation and distribution, as well as enhancement of value of oil and gas resources in the country,” said Le Minh Hong, vice president, PetroVietnam.

“With Honeywell we are confident of improving training quality to meet the surging demand for high quality talent for Vietnam’s energy needs.”

Students can contact either PetroVietnam University (PVU) or Honeywell’s team in Vietnam to register for classes.


Honeywell partners with PetroVietnam University to serve South East Asia | PACE

 

[nufix]

edited, double post