Indonesia Economy Forum

[MarveL]

CORPORATE ACTION
Telkom looking to build presence in Middle East
Jumat, 22 Agustus 2014 | 12:36 WIB

JAKARTA. Publicly listed state-owned telecommunications operator PT Telekomunikasi Indonesia (Telkom) is aiming to expand its business to Saudi Arabia as well as other Middle East countries this year, expecting to cash in on the large number of Indonesians living in and traveling to the region.

Telkom president director Arief Yahya said the company would partner with local mobile-network operators in the Middle East and operate as a mobile virtual network operator (MVNO) through its international subsidiary PT Telekomunikasi Indonesia International (Telin).

A MVNO provides wireless communication services without owning the network infrastructure. It partners with network operators to access network services at wholesale rates then sets retail prices independently.

“Our principle is that we will always follow the money, the people, the traffic and the network. So, we aim to get to any potential places that we’re not in yet,” Arief told The Jakarta Post after a state-owned enterprises awards event held by BUMN Track on Thursday.

There were around 1 million Indonesians working in Saudi Arabia alone and another million that traveled to the country, he said.

The number of umrah pilgrims to Mecca, Saudi Arabia, doubled to around 1 million last year from 500,000 in 2012, according to data from the Religious Affairs Ministry.

Arief said he expected Telin to earn revenue from workers’ remittances, worth trillions of rupiah.

The total funds sent home by all Indonesian overseas workers amounted to US$7.41 billion last year. About 65 percent of them worked in the Asia-Pacific region, with Malaysia the main destination and the rest in the Middle East, Africa, America and Europe.

Telin president director Syarif Syarial Ahmad announced last year that Telkom had signed a memorandum of understanding (MoU) with Saudi-based conglomerate the Al-Lama Group.

Al-Lama operates in both the Middle East and African markets in a number of business lines, including property, hotel, construction and telecommunications.

“By using this operational method, Telkom does not need to spend much on starting our business in our targeted countries in the Middle East,” Arief said, declining to disclose any further details about the planned Middle East expansion.

Besides planning to expand into the Middle East market, Telkom is currently expanding its presence in California’s Silicon Valley in the United States, where many global startups such as Facebook, WhatsApp were born.

“We are aiming to collaborate with local venture capitalists, such as Fenox Venture Capital, to build an incubator for Indonesian talent in the digital industry,” Arief said.

The budget for the expansions would account for part of its average annual capital expenditure of $2 billion, of which 70 percent was for the firm’s cellular business, 20 percent for broadband and the remaining 10 percent for other infrastructure development, such as telecommunications towers, he explained.

Telkom’s shares, which are traded under the code TLKM, closed at Rp 2,715 (23 US cents) on Thursday, down 0.37 percent from the previous day. (Khoirul Amin)

Telkom Looking To Build Presence In Middle East - Kontan Online

 

[MarveL]

FURNITURE
RI set to be SE Asia’s largest furniture exporter
Jumat, 22 Agustus 2014 | 09:03 WIB

JAKARTA. The Indonesian Rattan Furniture and Craft Association (AMKRI) says it is optimistic that Indonesia will become the biggest furniture and handicraft exporter in Southeast Asia in the next decade.

“This is because we are rich in raw materials for furniture and we have a lot of human resources,” AMKRI secretary-general Abdul Sobur said in Jakarta on Thursday, as quoted by Antara news agency.

Indonesia’s furniture export value reached US$1.8 billion last year, positioning the country as the world’s 18th largest furniture exporter.

The country ranked third in Southeast Asia after Vietnam and Malaysia.

Abdul stated his hope that the new Cabinet would introduce a regulation to help furniture businesspeople develop their products and export them to foreign markets. He added that the industry was important for the nation’s economy, as it could absorb the workforce.

RI Set To Be SE Asia’s Largest Furniture Exporter - Kontan Online

 

[MarveL]

Friday, August 22 2014, 2:59 PM
Jokowi - JK Government Targets 7% Economic Growth

JAKARTA - The president and vice president-elect Joko Widodo and Jusuf Kalla (Jokowi-JK) targeted national economic growth of 7% from 2014 to 2019.

"To reach that number, it needs an infrastructure investment of at least IDR6,500 trillion," said Deputy for Infrastructure, Housing and Transportation Office of Jokowi-JK Transition Team Akbar Faizal on Friday.

Akbar said that infrastructure investment demands could be provided by 25% of the State Budget or at IDR1,638 trillion.

While the remaining 75% has to be assisted from the other financing such as from State Owned Enterprises (SOEs) or private.

Akbar said Indonesia's economic growth over the past five years reached 5% with the budget allocation for infrastructure development ranging from 4% - 5% of Gross Domestic Product (GDP).

Indonesia infrastructure investment growth is still low compared to India which has reached 7% of GDP since 2009, while investment in China has reached 9-11% in 2005.

Additional budget of 1% of GDP only encouraged national growth of 0.17%, while India exceeded 0.28% and China 0.33%.

Akbar said the infrastructure development is vital to improve the country's economic growth as it has a ripple effect on the dynamics of economic activity.

Therefore, Jokowi-JK would take a new approach model in managing the national infrastructure.

Akbar said that the first approach includes holistic infrastructure development by promoting sustainable social environment equity.

Four infrastructure developments require a "big picture" and five management involve private potentials.

Akbar said Jokowi-JK administration also proclaimed the "Nawa Cita" or nine agenda of changes to improve people's productivity and competitiveness at national and international level.

Jokowi - JK Government Targets 7% Economic Growth | Economy - Bisnis.com

 

[MarveL]

Indonesia manufacturing cost, the lowest among top 25 exports economies, even lower than China and India

 

[MarveL]

moga2 di era jokowi ditolak



Indonesia, Freeport Agree on New Mining Terms

Quote:JAKARTA, Indonesia—Indonesia has cut a deal with Freeport McMoRan Inc. on export taxes and royalties, allowing the U.S. mining giant to resume copper-concentrate exports after a six-month stalemate.

The Phoenix-based company, one of the world's biggest copper producers, mines almost a fifth of its copper in Indonesia and controls Grasberg, the country's largest mine. Indonesia is a major producer of copper, tin and bauxite, and ranks as the world's fourth largest exporter of copper, an essential modern metal used to make pipes and wires.


Freeport McMoRan's Grasberg complex in Indonesia is one of the world's biggest copper mines. The U.S. company has cut a deal with the government that will allow Freeport to resume copper exports. Agence France-Presse/Getty Images
Under the deal announced Friday, Freeport's Indonesia unit will pay higher royalties, help build a smelter and begin paying taxes on copper-concentrate exports, the government said. Copper concentrate, which looks like heavy sand, is what is generated after the rock is mined, crushed and milled. It is easy to ship and is the main raw material for copper smelters.

Freeport also agreed to "provisions" to increase the stake in the local unit held by the Indonesian government and nationals to 30% from the current 9.36%. Freeport currently controls a 90.64% stake.

The deal represents a victory for Indonesia, which has tried to gain greater control of its vast natural resources and milk more in taxes and royalty payments from foreign miners and investors. Freeport Chairman James "Jim Bob" Moffett said the agreement would "enable continuing benefits of the Grasberg operations for the government, the local communities in Papua, our large Indonesian workforce and our shareholders."

In January, the government imposed an export ban aimed at keeping lucrative refining work within the country.

That was bad news for Freeport and Denver-based Newmont Mining Corp. NEM -0.83% Newmont Mining Corp. U.S.: NYSE $26.39 -0.22 -0.83% Aug. 22, 2014 4:00 pm Volume (Delayed 15m) : 3.73m AFTER HOURS $26.39 0.00 % Aug. 22, 2014 4:27 pm Volume (Delayed 15m) : 39,643 P/E Ratio N/A Market Cap $13.41 Billion Dividend Yield 0.38% Rev. per Employee $238,413 08/21/14 Indonesian Court Upholds Widod... 08/17/14 Newcrest Reports Loss After Wr... 08/05/14 Indonesia's New President Coul... More quote details and news » , the other big Western miner in the country. Large Western mining companies say that so-called resource nationalism, such as export bans and tax increases, are one of their biggest challenges. Without their expertise, they say, countries like Indonesia and the Democratic Republic of Congo wouldn't have profitable job-creating mines.

Newmont hasn't yet agreed to an export deal and this month sought arbitration with the U.S.-based International Center for the Settlement of Investment to resolve its standoff with Indonesia.

"We are encouraged by the news about Freeport," spokesman Omar Jabara said Friday. Newmont, he added, "has been holding ongoing meetings with the government to define the outlines of a separate memorandum of understanding" that would allow the company's Batu Hijau copper and gold mine to resume operations after the company shut it down in early June because of the export ban.

On Friday, Director General of Coal and Mineral Resources Sukhyar said once the deal with Freeport is signed the company may start exporting copper concentrate within two weeks. By the end of the year, Freeport's total copper-concentrate exports from Indonesia are expected to reach 756,300 tons with an estimated value of $1.56 billion, said Mr. Sukhyar, who uses a single name. Last year, Indonesia's copper concentrate exports totaled 1.45 million tons.

Freeport doesn't disclose exports, but it says in 2013 it produced roughly 400,000 tons of copper in Indonesia, up 24% from 2012. The company said its most recent annual report that "sales from Indonesia mining are expected to increase in 2014 through 2016" as it "gains access to higher grade ore."

Freeport had initially refused to renegotiate its current contract, which doesn't require it to pay an export tax and wasn't due to expire until 2021. However, it stood to lose a huge investment in the country if it refused to sit down with the government.

Freeport has invested billions of dollars since the early 1960s in the eastern province of Papua to develop Grasberg, among the three biggest gold and copper mines on the planet.

Mr. Sukhyar said Freeport will provide a $115 million assurance bond to build a smelter, with duties on its exports declining to zero from 7.5% as the facility progresses. Meanwhile, its royalty payments will rise to 4% from 3.5% for copper and to 3.75% from 1% for gold.

In addition to the ban on ore exports, the government in January instituted export duties on mineral concentrates of copper, iron, zinc, and manganese. The duties, which begin at 20% and 25%, would rise to 60% before a complete ban on concentrate exports is imposed in 2017.

The goal is to force mining companies to build smelters and refine their minerals within the country to add value to the economy.

Companies mining in Indonesia typically smelt a relatively small part of their mineral production in the country. They say it is uneconomical and that they can't compete with smelters in China and elsewhere in the region.

In the face of their opposition to the new export taxes, the government said it would consider lowering the rates for companies that commit funds for new smelters.

The administration of President Susilo Bambang Yudhoyono has left it to a newly elected government to decide whether to extend Freeport's contract beyond 2021. President-elect Joko Widodo, who is scheduled to start his five-year term in October, said on Friday that his government and Freeport will discuss the possibility of extending the newly revised contract in 2019.

Any new mining contract extension could be granted "only two years before they are due," Mr. Widodo said, before the signing of the new mining contract terms. He declined to elaborate.

Freeport Indonesia Chief Executive Rozik Soetjipto said recently the company plans to invest $7.1 billion in the Grasberg Mine if the government extends its contract by 20 years. This is on top of $9.8 billion it plans to spend between 2012 and 2021.

http://online.wsj.com/articles/freeport-indonesia-unveils-new-mining-contract-terms-1406289397

 

[Nike]

Indonesia manufacturing cost, the lowest among top 25 exports economies, even lower than China and India

BTW, Indonesia doesn't follow the export driven economic growth rules up till today, largely we are only depend on consumer base economic growth. I think, trying to rebalancing our economic growth with export driven policy will bring more growth into our manufacture area and infrastructure supports and it will brought more economics growth to us. Seven per-cent economy growth will became a reality, although it will be easier to said than to be done

 

[katarabhumi]

IAEA Supports Indonesian Experimental Nuclear Power Plant
SATURDAY, 23 AUGUST, 2014

TEMPO.CO, Jakarta - Alexander Bychkov, the Deputy Director General of Nuclear Energy for International Atomic Energy Agency (IAEA), stated his support for the Indonesian experimental nuclear power plant to be built in Serpong, Tangerang.

"We see a very good program that will implement nuclear technology for the Indonesian economy," Bychkov said on Thursday, after visiting the Indonesian Technology and Research Ministry, as quoted by Antara News.

He said the IAEA is ready to meet with colleagues and discuss possible support from the agency for the building of an experimental reactor at the National Nuclear Energy Agency, Batan.

Bychkov said the the reactor to be built in Batan includes advanced technology.

"The program in Batan will demonstrate that nuclear technology can produce not only energy, but also heat, hydrogen, and other useful products for the nations economy," he said.

Bychkov added that the agency will support and assist Batan in creating the program with high safety levels, as well as sharing their experience.

The Chief of Batan, Djarot Sulistio Wisnubroto, said the total budget for the experimental energy reactor in Serpong is Rp1.6 trillion.

He noted that the reactor can produce a maximum 30 Mw of electric power. "The aim is to show the people that we can maintain a safe nuclear reactor. Second is to utilize the nuclear energy, not only for power, but also for sea water desalination, as a smelter and for coal disbursement," Djarot said.

Bychkov will conduct meetings with several stakeholders in Indonesia, including the Mineral Resources and Energy Ministry, Research and Technology Ministry, Foreign Affairs Ministry, National Electricity Company, Pertamina and Nuclear Monitoring Agency.

IAEA Supports Indonesian Experimental Nuclear Power Plant | Economy & Business | Tempo.Co :: Indonesian News Portal

 

[Indos]

Faisal Basri is such an asshole he is not an economist, he is a politician and a dirty one

he,he......he is in a liberal camp. I like Drajat Wibowo though.....

 

[MarveL]

BTW, Indonesia doesn't follow the export driven economic growth rules up till today, largely we are only depend on consumer base economic growth. I think, trying to rebalancing our economic growth with export driven policy will bring more growth into our manufacture area and infrastructure supports and it will brought more economics growth to us. Seven per-cent economy growth will became a reality, although it will be easier to said than to be done

SBY really leaves fiscal mess for Jokowi, seem 7% will be day dreaming for a while.

 

[Nike]

SBY really leaves fiscal mess for Jokowi, seem 7% will be day dreaming for a while.

nah is nothing compared what Mega left for SBY a while back when he is took the office for the first time,

come on, with a one trillion economy, positive outlook from three major credit rating companies, 5 to six per-cent yearly economic growths, growing tax to GDP ration income, healthy major BUMN companies such Pertamina, PLN, PTPN, Semen Indonesia, Wijaya Karya and so on, ever growing middle class, you can't call it a fiscal and financial mess. Yes i do agree if SBY can't handle subsidies issue properly but you should take a notice who in parliament aggressively confront SBY decision when he decided to reduce fuel subsidies a while back? PDI-P the same party who bring Jokowi into office today.

 

[Nike]

Medco aims to become leading
oil producer in Tunisia
Anggi M. Lubis, The Jakarta Post, Jakarta | Business | Sat, August 23 2014, 12:03 PM

MedcoEnergi International president director Lukman Mahfoedz says that his company’s comeback in Tunisia through the acquisition of eight new oil and gas blocks is a great leap for the company’s global expansion, taking advantage of untapped oil and gas resources in the North African country.

After months of talks, publicly listed MedcoEnergi finally secured contracts recently to develop and explore eight new oil and gas blocks in Tunisia.

Medco, through its subsidiary Medco Tunisia Petroleum Ltd., has obtained approval from the Tunisian government and the company’s local partners to start activities in eight local oil and gas blocks on Aug. 18, the company said.

Lukman told The Jakarta Post on Friday that the company would sell the output from the blocks on the local Tunisian market, saying that Medco would take advantage of the country’s growing energy needs and competitive prices.

“These assets, with lots of potential to grow, will contribute significantly to Tunisia’s oil and gas production and MedcoEnergi will be one of the leading E and P [exploration and production] players in Tunisia in the future,” he said.

“Tunisia is far more competitive compared with other countries in North Africa, and even Indonesia as MedcoEnergi’s home country. For instance, contractors’ share from oil production is only maximum 15 percent, while it can hit around 20 percent in Tunisia.”

In some of the company’s newly acquired blocks, Lukman explained, contractors’ share from production could even hit 30 percent.

He said that Tunisia’s oil and gas industry was relatively new, datingback only to 1964 when the first giant oil block was found.

MedcoEnergi’s data showed that, to date, Tunisia produced 62,000 barrels of oil equivalent per day (boepd) and 340 million standard cubic feet per day (mmscfd). Its oil and gas reserves stand at 170 million barrels and 1.52 trillion cubic feet (TCF).

Earlier this year, Medco Tunisia Petroleum signed an acquisition deal for a 100 percent stake in Storm Ventures International (Barbados) Ltd. (SVI) from Storm Ventures International (BVI) Ltd., a subsidiary of Toronto-listed Chinook Energy Inc.

The US$114.03 million acquisition now makes Medco the shareholder of a company owning eight participation interests in oil and gas blocks in Tunisia.

SVI owns four exploration blocks, two development blocks and two producing blocks with working contracts of either 30 or 50 years.

Of the eight blocks, five — Adam, Sud Remada, Bir Ben Tartar, Jenein and Borj El Khadra — are onshore and are located in the Ghadames Basin.

Meanwhile, three other blocks, namely Cosmos, Hammamet and Yasmin, are located offshore on the northeast coast of Tunisia.

From the new blocks, Medco is expecting to see additional reserves of 12.3 million barrels of oil equivalent (mmboe) and the production of 2,800 boepd.

The company says the Tunisian blocks are promising and it is expecting that development work will allow total production to reach 16,000 boepd, particularly driven by further drilling at Bir Ben Tartar. Also, development work at Cosmos and Yasmin is expected to lift reserves to 12.6 mmboe when it is completed by 2018.

Medco first entered Tunisia in 2007, before deciding to divest its stake in the Anaguid area in 2011.

“With our comeback, Medco is now operating oil and gas in six countries, namely the United States, Libya, Oman, Yemen, Papua New Guinea and Tunisia,” Lukman said.

Medco aims to become leading oil producer in Tunisia | The Jakarta Post

 

[Nike]

Jokowi told to begin construction
of Sunda Strait Bridge
in 2015
The Jakarta Post, Lebak | Business | Sun, August 24 2014, 7:36 PM

Builders in Lebak regency, Banten, are urging Jakarta governor and president-elect Joko “Jokowi” Widodo to realize the long-delayed Sunda Strait Bridge construction project to spur economic growth in Java and Sumatra.

“We believe that Banten and Lampung’s economies will grow and many investors will come if the development plan for the Sunda Strait Bridge can be realized,” Lebak-chapter Indonesian Builders Association (Gapensi) secretary, Enjat Sudrajat, said as quoted by kompas.com, on Saturday.

He said the Sunda Strait Bridge would serve as a very strategic connection, joining Java and Sumatra islands, and could have a positive impact on economic growth for the people of Banten. Citing an example, he said Banten entrepreneurs could be involved in the goods and service procurement process for the construction project.

Enjat said there was hope that the Jokowi administration would start building the Sunda Strait Bridge in 2015; the current government had promised to start construction in 2014 but progress remained unclear to date.

The Sunda Strait Bridge is part of the government’s Master Plan for the Acceleration and Expansion of the Indonesian Economy (MP3EI).

Once the bridge was complete, Enjat said, investors in the tourism, housing, mining and agriculture sectors would start coming to Lebak, creating more job opportunities in the regency.

He further said the bridge was also needed to address serious traffic congestion on roads leading to Merak port in Serang, Banten, which he said was no longer suitable for use.

In February, the government decided that the construction of the Sunda Strait Bridge would be left to the next administration. It was also decided that no state money would be spent on the mega-project. The government agreed that state-owned construction companies would take part in the project, along with PT Graha Banten Lampung Sejahtera, a consortium led by tycoon Tomy Winata, the initiator of the project. (dyl/ebf)

Jokowi told to begin construction of Sunda Strait Bridge in 2015 | The Jakarta Post

RI to revise regulation
on foreign construction
companies
Nadya Natahadibrata, The Jakarta Post, Jakarta | Business | Sat, August 23 2014, 11:28 AM

The Public Works Ministry will issue a revision to a ministerial regulation on foreign corporations amid a possible influx of foreign construction companies ahead of the ASEAN Economic Community (AEC) next year.

The ministry’s construction division head, Hediyanto W. Husaini, said on Friday that the ministry would be able to control the percentage of local workers employed as well as local materials used by foreign construction companies operating across the country under the new regulation.

“The revision will be signed within a month, during the term of the current administration,” he told reporters at his office.

“We have to revise the regulation immediately [...] ahead of the AEC.”

Hediyanto said the current ministerial regulation No. 5/2011 did not detail the composition of local workers or locally produced materials to be used in foreign construction companies’ projects.

“A number of foreign construction companies in Indonesia form joint ventures with local companies only as a formality, without actually involving local workers in their projects,” he said.

According to him, all of the foreign construction companies have complied with a regulation on ownership limits, but their local partners only served as “sleeping partners” and made no contribution to decision-making.

“For instance, under the revised regulation, we will regulate that all design drafting should be conducted in Indonesia, and not be conducted overseas without any involvement by local staff,” he said.

“We want the joint venture to have a degree of quality, and these foreign companies to be able to transfer their technology and to employ local workers.”

The current limit on foreign ownership in the construction sector was set at 67 percent for construction companies and 55 percent for construction-consulting companies, as stated in the recently revised negative investments list (DNI).

According to data from the National Construction Development Agency (LPJK), the number of companies involved in the construction sector amounts to 1,300 in total.

Hediyanto said that up to this month, the number of foreign construction companies in the country had reached 298, and most of them came from South Korea, Japan and China.

He said that Indonesia should get ready for the possible influx of construction companies from neighboring countries, like Malaysia, which according to him, had more specialized construction companies that were able to carry out reclamation projects as well as constructing tunnels.

“Our local construction companies lack specialisms. The more construction projects we conduct within the next few years, the more foreign companies will eye the opportunities and try to enter the business,” Hediyanto said.

According to the ministry, spending on the construction of commercial buildings and infrastructure facilities is set to increase by about 10 percent this year to hit Rp 407 trillion (US$34 billion), from Rp 369 trillion in 2013.

RI to revise regulation on foreign construction companies | The Jakarta Post

 

[Nike]

Indonesia’s Car Exports to Jump 93 Percent Next Year on Rising Production
By Damiana N. Simanjuntak on 07:52 pm Aug 24, 2014

Bandung. Carmakers in Indonesia expect to see a 93 percent rise in exports next year, thanks to a higher volume of production, an official at the Indonesia Automotive Industry Association said on Friday.

Noegardjito, general secretary for the association known as Gaikindo, said Indonesia could export up to 386,000 cars by 2015, up from this year’s estimate of some 200,000 units.

“Car production next year is targeted at 1.61 million units. Around 386,000 is likely to be exported,” Noegardjito said during an automotive workshop in Bandung.

This year, car production is estimated at 1.3 million units. Southeast Asia’s largest economy has seen its domestic car sales pass the one million milestone, a feat that has drawn automobile producers to invest in the country.

Though most carmakers limit their stake to assembly plants, some Japanese car brands, including Indonesian favorite Toyota, have begun investing in full manufacturing plants.

Budi Darmadi, a director general at the Industry Ministry, said Indonesia currently exported some 15.4 percent of the cars it produces.

The ministry hopes to see that proportion increase to 24 percent next year.

Some of the cars put together at plants in Indonesia are exported around the world, including Toyota’s Avanza and Fortuner, the Nissan Grand Livina, the Honda Freed, Chevorelet Spin and Suzuki APV.

Friday’s automotive workshop also touched on the issue of fuel conversion from oil to gas, as the government seeks to reduce the burden of fuel subsidies.

According to Noegardjito, the domestic automotive industry will be more than capable of producing cars that can run on both types of fuel, should the government require it.

“However, all the supporting facilities, like gas-fuel stations must be developed,” he said, adding that clear regulations and incentives for producers were needed.

Indonesia’s Car Exports to Jump 93 Percent Next Year on Rising Production | The Jakarta Globe

We can produce more than two millions car a year by 2017 when the Toyota and Daihatsu new plants in Karawang fully operational

Pulp and Paper Market to Grow 5% in 2015
By Vanesha Manuturi on 07:11 pm Aug 22, 2014

Pekanbaru. Indonesia’s pulp and paper market is forecast to grow by 5 percent next year, amid intensifying global competition, on rising paper consumption in China, an executive at Riau Andalan Pulp and Paper said.

RAPP president director Kusnan Rahmin said the Asian market — China in particular — has been showing an upward trend in pulp and paper demand.

Global pulp demand is expected to grow 2.6 percent annually, to 38.9 million tons by 2025 from 24.5 million tons in 2010.

China’s market in particular is forecast to grow 6.4 percent annually, reaching 14.3 million tons in 2025.

RAPP exports around 70 percent of its total production, while the remainder is sold to Indonesian customers.

Despite steady growth in Asia, demand for paper in North America and European countries is slowing as the use of computers and mobile device in the digital age rapidly grows, according to Rusli Tan, deputy chief of the Indonesia Pulp and Paper Association (APKI).

“Just think about it, in Western countries nowadays, most people access everything on the Internet,” Rusli said on Thursday.

Many of Indonesia’s pulp and paper companies have faced slower demand this year due to an oversupply of paper and declining paper consumption globally.

Facing an oversupplied market, Kusnan said the competitiveness of Indonesia’s pulp and paper manufacturers must be maintained in order to keep their hold on the Asia-Pacific market.

Rusli echoed Kusnan’s sentiments, adding that the government must take part in facilitating the industry’s growth to assist local companies.

“For now, Indonesia’s pulp and paper companies must remain competitive and uphold their market share by increasing production capacities,” Rusli said.

The total paper production in Indonesia reached 6 million tons last year, with around 2.8 million tons coming from RAPP.

In 2014, production is expected to reach 8 million tons, 33 percent higher from last year, with the growth of Sinar Mas’s pulp and paper plant in Palembang, South Sumatra, which commenced operations earlier this year.

Rusli remains upbeat that if the next government, led by President-elect Joko Widodo, succeeded to improve Indonesia’s infrastructure, the pulp and paper industry could grow by 20 percent in 2016.

“Improved infrastructure will lead to higher purchasing power, which will spill over to the pulp and paper industry,” he said.

Environmental groups often single out pulp and paper manufactures such as RAPP, but Kusnan emphasized that ensuring the sustainability of RAPP’s forest area simply makes business sense.

“Why would we burn our own forest if we need to timber from it?” he said. “RAPP only has a limited area of land. We can’t add on more land, so optimization is key.”

Pulp and Paper Market to Grow 5% in 2015 | The Jakarta Globe

 

[Nike]

IAEA Supports Indonesia’s Plan for Reactor
By Jakarta Globe on 10:02 pm Aug 22, 2014

Jakarta. The International Atomic Energy Agency, or IAEA, supports Indonesia’s plan to develop an experimental power reactor, or RED, as part of implementing nuclear technology in the country.

“The IAEA will be a watchdog that will monitor the utilization of nuclear energy in the context of improving life quality and welfare [in Indonesia],” IAEA’s deputy director general Alexander Bychkov said in a meeting with Research and Technology Minister Muhammad Hatta in Jakarta on Thursday. They were accompanied by Djarot Sulistio Wisnubroto, head of the National Nuclear Energy Agency (Batan).

Bychkov said the IAEA would exchange information, experience, knowledge and offer advice on nuclear technology when RED was built. Djarot said the RED aims to show people that nuclear power plants (PLTN) can be used to produce electricity that even small islands can benefit.

“The idea to construct RED came up last year. Right now, we are going to try to get the new government to approve this program. A political decision from Indonesia’s president-elect is needed,” Djarot said.

Both Bapeten and IAEA will cooperate in supervising safety and nuclear security to ensure that the nuclear site will not be misused, Nuclear Energy Regulatory Agency (Bapeten) deputy chairman Khoirul Huda said.

“Bapeten and the IAEA will make sure that the nuclear site will not cause harm to the people and the environment. Besides, we want to create an image that nuclear [power] is safe,” he said.

The program itself has been included in the National Mid-Term Development Plan (RPJMN) by the National Development Planning Board (Bappenas). RED can produce up to 10 megawatts of electricity.

According to the plan, RED will be built in Serpong, South Tangerang, and its construction can be completed in three to four years at a budget of up to Rp 1.6 trillion ($137 million). If approved, Djarot predicted that the nuclear site will be completed in 2019.

Still, anti-nuclear activists have said that Indonesia would risk enduring environmental risks of radioactive contamination.

IAEA Supports Indonesia’s Plan for Reactor | The Jakarta Globe

 

[Nike]

Honeywell Promotes Science and Technology Education in Partnership with Government Schools

Jumat, 22 Agustus 2014 18:51 WIB | 499 Views

More than 1,200 students and 12 teachers will benefit from experiential learning science kits program; Honeywell Engineers volunteer to promote technology careers to students

JAKARTA, Indonesia, Aug. 22, 2014 (ANTARA/PRNewswire) -- Honeywell (NYSE: HON) announced today that it is helping more than 1,200 local students learn about science and technology through a partnership with local schools in Batam and Bintan in Riau Islands province.

Under the Honeywell Science Kits program, four schools will receive science kits supporting the national curriculum. These comprehensive tools will allow students to experience science and technology concepts in an innovative way. As part of the program, 12 teachers from these four schools will be trained with hands-on teaching techniques, enabling them to better engage their students in the classroom. In addition to that, 12 engineers from local Honeywell facility are volunteering to promote technology careers at these local schools.

The program is part of Honeywell's ongoing commitment to promote science and technology education in Indonesia which includes sponsoring middle school math and science teachers to attend its international programs such as Honeywell Educators and Green Boot Camp to learn advanced teaching techniques. This new science kits program is sponsored by Honeywell Hometown Solutions, the company's global citizenship initiative.

"Honeywell provides students and teachers opportunities in science and technology education in Indonesia, through a series of unique programs designed to inspire the next generation of innovators," said Alex Pollack, President of Honeywell Indonesia. "This exciting program affords students an opportunity to learn concepts in a more engaging manner and gain valuable access to information about potential careers in science and engineering from Honeywell's top engineers."

According to National Science Foundation, 80 percent of the jobs in the next 10 years will require Science, Technology, Engineering and Math (STEM) skills and capabilities. "We aim to provide the best education to our students and these advanced teaching techniques will be highly beneficial both for our students as well as our teachers. We welcome such initiatives and are delighted to have Honeywell engineers volunteer to encourage our students," said Zurnalis, Principal of SMPN 9, Batam.

Honeywell Science Kits program is being run in partnership with SMP II Lukman Hakim and SMP Negeri 9 in Batam as well as in SMP Negeri 11 and SMPN 13 in Bintan.

About Honeywell

Honeywell is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; turbochargers; and performance materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London, and Chicago Stock Exchanges. For more news and information on Honeywell, please visit www.honeywellnow.com.

About Honeywell, Indonesia
Honeywell's products and systems have been distributed and installed in Indonesia since 1974. In 1992, Honeywell established our Indonesian representative office, which maintains a network of local distribution companies. Today, three of Honeywell's businesses, Automation and Control Solutions, Aerospace, and Performance Materials and Technologies, employ over 1,500 employees in cities across the country, including Jakarta, Surabaya, Purwakarta, Batam and Bintan.

About Honeywell Hometown Solutions

Honeywell Hometown Solution, the company's corporate citizenship initiative, which focuses on five areas of vital importance: Science & Math Education, Family Safety & Security, Housing & Shelter, Habitat & Conservation, and Humanitarian Relief. Together with leading public and non-profit institutions, Honeywell has developed powerful programs to address these needs in the communities it serves. For more information, please visit Honeywell Corporate Citizenship.