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Indonesia Economy Forum

Merauke to contribute to country`s production of unhulled rice
Senin, 18 Mei 2015 20:20 WIB | 554 Views
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Haryono. (ANTARA/Asep Fathulrahman)
Jakarta (ANTARA News) - The Agriculture Ministry said newly developed food estate in the district of Merauke, Papua, will give the country an additional rice production of 1.5 million tons a year starting in 2016.

Head of the Research and Development Board of the Agriculture Ministry Haryono said this year the government will open 250,000 hectares of the target of 1 million hectares of food estate in Merauke.

The 250,000 hectares of food estate would be grown with rice, and with a productivity of 6 tons per hectare, it would produce around 1.5 million tons of unhulled rice per year, Haryono said.

The food estate in Merauke is expected to contribute significantly to reaching the self sufficiency target in rice, he added.

"It is one harvest per year and the production would double if harvest could take twice a year," he said.

Haryono said Merauke has 1.2 million hectares of potential flat lands to be grown with food crop such as rice.

He said the government hopes to transform 1 million hectares of the lands into rice field in 2016 including 750,000 hectares by state company and the rest by the private sector.

"This year 250,000 hectares of the land would be developed to be grown with rice," he said.

The Research and Development Center of the Agriculture Ministry will provide high yield seed variety suitable with the soil.
(Uu.H-ASG/F001)

Merauke to contribute to country`s production of unhulled rice - ANTARA News

Indian investor wants to build a new port in Timika
Selasa, 19 Mei 2015 08:04 WIB | 710 Views
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Paumako Port, Timika, Papua. (ANTARA)
Timika (ANTARA News) - An Indian investment company Bothra Group has indicated interest in building a new international port in Paumako, Timika, Papua.

Valkyn Clive Dmello, the president director of Jaldhi Marine Services of the Bothra Group said Jaldhi already surveyed the Paumauko harbor.

The company hopes for support from the district administration to build an international seaport in Paumako, Dmello told ANTARA News here.

"We are interested in cooperating with the Mimika district administration to build an international class port in Paumako. We believe if Timika has a good port, the district economy would grow rapidly," he said.

He said Jaldhi Marine Services has a representative office in Jakarta and has been in operation in the past four years.

Jaldhi Marine Services already has experience in building fertilizer , coal, oil and container ports and warehouses in India and a number of other countries in Africa, America, etc.

One of the ports the company has built is the Kakinada port in India.

The company also has representative offices in China and Singapore, and currently it is building a seaport in Jambi, Sumatra.

"The condition in Kakinanda is almost the same as in Timika. Previously Kakinanda was a small town without port. But after the port has been in operation the city grew fast in economy. Timika is highly potential, therefore, we are interested in building an international port there," Dmello said.

He said the cost of building a port in Paumako could reach Rp500 billion to Rp1 trillion.

Mimika Regent Eltinus Omaleng welcome the interest shown by the Indian investor.

"We already provide the location . They only need to invest in Timika. We hope they are serious and start soon," Eltinus said.

He said the Paumako harbor is one of the busiest ports in Papua.

It needs to be developed into an international port. All goods needed by the people in the interior districts are supplied via the port of Paumako Timika, he said.

"Mimika shares borders with 15 other regencies including Asmat, Yahukimo, Nduga, Intan Jaya, Puncak, Puncak Jaya, Paniai, Deiyai and Dogiyai and all essential goods needed by the districts are supplied via Timika," he said.

He said the port of Paumako is being build to become a special cargo port, adding the one to be built by the Indian investors is a passenger port.

He said if the Indian investor began construction in July or August, Timika would have an international port in two years.
(Uu.H-ASG/H-YH)

Indian investor wants to build a new port in Timika - ANTARA News
 
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Indonesia Receives Renewable Energy Investment Commitments
WEDNESDAY, 20 MAY, 2015

TEMPO.CO, Jakarta - Indonesia's Investment Coordinating Board (BKPM) has received investment commitments worth US$4.01 billion in the renewable energy sector from British and Scottish companies.

The BKPM received the commitments through an "Indonesia Business Forum: Energy Policy Updates and Opportunity" held in cooperation with Scottish Development International (SDI) in Glasgow, Britain.

"They have shown interest to invest in solar energy projects, with a capacity of over 10 megawatts (MW), and off-shore tidal energy projects. Several companies have also sought our help to find potential partners inIndonesia," Deputy for Capital Investment Promotion Himawan Hariyoga noted in a press statement received on Tuesday.

He said the forum was organized by the government to support its commitment to achieve green investment growth after successfully organizing the Tropical Landscapes Summit late in April.

He stated that the forum, attended by around 25 renewable energy companies based in Britain and Scotland, was held concurrently with "All Energy Sector Conference and Exhibition 2015," in which Indonesia also participated through the Indonesia Investment Promotion Center.

"We have deliberately taken advantage of the momentum to explain our new investment policy and opportunities in the new and renewable energy sector in Indonesia to energy companies in Britain that have shown interest to invest in Indonesia," he affirmed.

He emphasized that the BKPM and IIPC London were committed to ably lead prospective investors.

SDI Senior Manager for Renewable Energy and Low Carbon Technologies Ewen Cameron stated that Scotland is a leader in the development of renewable energy in England, including Europe.

SDI itself is a Scottish government agency that deals with investment in the country as well as abroad.

"We are convinced that several cooperation opportunities can be utilized by Scottish, British, and Indonesian companies," he pointed out.

He admitted that his company, along with several British companies, will visit Jakarta to explore investment in the energy and oil and gas sectors with the concerned ministries and institutions in the country.

Indonesian Ambassador to Britain and Ireland Hamzah Thayeb hailed the business forum and hoped that British and Scottish investment in the renewable energy sector would continue to increase in the years to come.

"Scotland is worthy of being considered as an integrated investmentpromotion destination in the fields of new and renewable energy sources by the concerned ministries and government agencies. Several Scottish companies have shown great interest to invest and develop new and renewable energy sources in Indonesia. The cooperation, which has been established so far, can be used as an initial platform to boost investment in Indonesia," he affirmed.

According to BKPM's data for the past five years between 2010 and 2014, the total realization of green investment reached 30.3 percent of the total investment at around Rp486 trillion as compared to the total investment value recorded at Rp1.6 thousand trillion.

Of the total realization, Rp26.8 billion is foreign investment and Rp139.1 trillion is domestic investment.

The BKPM has set a target to achieve green investment growth at 20 percent a year, so that by 2019, foreign investment can reach US$56 billion and domestic investment, Rp448 trillion.

Indonesia Receives Renewable Energy Investment Commitments | Economy & Business | Tempo.Co :: Indonesian News Portal
 
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Development of Teluk Lamong Port Completed and Ready for Operational

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Bird Population Boom in Aceh, after Mangrove forest restoration process

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World Bank President meet with President Jokowi offering $11B new soft loan.

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1600 trilyun total investment from 2010 to 2014, that's amazingly huge, almost hit 150 billion US dollar
 
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Soekarno bridge with 1,2 km long completed in Manado, North Sulawesi, and ready for trial before inauguration by President and open for public

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Thai PTT Global Seeks to Secure Feedstock for Planned Indonesian Petrochemical Plant
By Reuters on 05:21 pm May 25, 2015
Category Business, Corporate News
Tags: Pertamina, Petrochemical plant, PTT Global Chemical, Saudi Aramco

Pertamina’s distinctive logo is shown in this photograph. (JG Photo/Yudhi Sukma Wijaya)

Bangkok. Thailand’s PTT Global Chemical said on Monday it was in talks with Indonesia’s Pertamina and Saudi Aramco to raise naphtha capacity at Pertamina’s Balongan refinery to use as feedstock for a planned petrochemical complex in Indonesia.

PTT Global has joined with Pertamina to build a 1.5 million ton olefins cracker at Balongan City and the project required 2.25 million tons of naphtha as a feedstock, Thitipong Jurapornsiridee, vice-president for corporate finance, told investors during an earnings presentation.

Pertamina has selected Aramco to upgrade the Balongan refinery to produce more refined oil products and the refinery could be integrated with the petrochemical complex, Thitipong said.

The Indonesian national oil firm is expected to make a final investment decision on the petrochemical complex in the second quarter of 2017 and it could start its commercial run in 2022, Thitipong said.

The project has been delayed as Pertamina and Aramco need to study the expansion of refinery capacity before concluding a deal on the petrochemical project with the Thai company.

PTT Global, petrochemical flagship of state oil and gas company PTT PCL, is one of the world’s top 10 ethylene makers.

Parent PTT has joined with Aramco to develop a refinery and petrochemical complex in Vietnam.

Reuters
Thai PTT Global Seeks to Secure Feedstock for Planned Indonesian Petrochemical Plant - The Jakarta Globe
 
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Krakatau Steel Secures $260m Loan from Commerzbank to Build Steel Plant
By Vanesha Manuturi on 09:57 pm May 21, 2015
Category Business, Corporate News
Tags: Krakatau Steel

President Director of Krakatau Steel Sukandar (center) was shaking hands with a director of Commerzbank Ralph Lerch (right) and Senior Vice President Commerzbank for Export Finance Stefan Kilp (right) in the signing ceremony of a loan deal in CIlegon, Banten on Thursday. (Antara Photo/Asep Fathulrahman)

Jakarta. State steel producer Krakatau Steel on Thursday signed a deal which will pave the way for the company to secure a $260 million loan agreement from German lender Commerzbank to build a new steel processing plant in anticipation of greater domestic demand for steel ahead.

“This investment will keep Krakatau Steel ahead of the national market in hot rolled coils,” the company’s president director Sukandar said in a statement on Thursday.

The loan facility, which will be disbursed through an export credit agency, will be used for the construction of a hot strip mill in the Cilegon Industrial Estate, according to a statement.

Hot strip mills processes steel slabs into hot rolled coils, a material that’s often used in automotive components, general construction as well as oil and gas pipelines.

The plant, which would be Krakatau Steel’s second hot strip mill, which is scheduled to start operations in September 2017, producing up to 1.5 million ton of hot rolled coils annually in the first phase.

This would total the company’s production capacity to 3.9 million ton per year.

The 48-hectare plant will also be supported with steel slabs from a subsidiary of Krakatau Steel, Krakatau Posco, according to the statement.

As global demand for steel remains weak, Sukandar said he’s looking to tap into local steel demands with the new plant, citing greater support from the government.

“The government has given more attention to the steel industry in Indonesia with its plan to increase the entry fee of steel,” he added.

Ralph Lerch, the director of export finance at Commerzbank, echoed the sentiment, emphasizing that the Indonesian market remains a promising market for steel.

“We will continue to support Krakatau Steel in investing and expanding its market to become the top regional player. This agreement also signifies Commerzbank’s role towards infrastructure development in Indonesia,” he said in a statement.

Krakatau Steel will build the plant under a consortium of engineering, procurement and construction firm, which consisted of its subsidiary, Krakatau Engineering, and German plant construction and mechanical engineering firm SMS Siemag.

GlobeAsia

Krakatau Steel Secures $260m Loan from Commerzbank to Build Steel Plant - The Jakarta Globe
 
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Lamong Bay Terminal opens in Indonesia
Lily Bertha Kartika
26 May 2015
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Lamong Bay Terminal. Photo: Konecranes

Lamong Bay Terminal in Indonesia's Surabaya port was officially opened by President Joko Widodo on 22 May, marking a milestone for the country's transportation development.

The terminal, which will raise Surabaya's annual throughput capacity from 1.5 million teu to 3.5 million teu, can accommodate 5,000 teu vessels and is fully automated with Konecranes' systems.

Operated by Indonesian state-run Pelindo III, the terminal is part of president Widodo's plan to develop Indonesia into a maritime nation, a strategy that involves building more than 170 seaports.

Konecranes, a Finnish crane-maker, supplied 20 automated stacking cranes, remote operating stations (ROS), and associated container yard infrastructure. Konecranes also provided 10 ship-to-shore cranes and five straddle carriers.

Pelindo III project manager Prasetyadi said, "Lamong Bay Terminal is the next-generation container terminal. Thanks to the reliability, productivity, predictability, and safety provided by our Konecranes automated container handling system, we will provide our shipping line customers with uninterrupted, reliable container flow. This will be the key to build up business success in Indonesia and Southeast Asia."

Lamong Bay Terminal's automated container handling system incorporates a host of technological improvements, including stronger redundancy throughout the design and an improved ROS and graphical user interface.

Lamong Bay Terminal opens in Indonesia - IHS Maritime 360
 
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RI set to join sharia infrastructure bank

Indonesia will become a founding member of a cross-border sharia-compliant infrastructure bank to help boost infrastructure development in various countries, a top government official says.

The bank, named Islamic Investment Infrastructure Bank, will be cofounded with Turkey and the Saudi-based Islamic Development Bank (IDB), according to Finance Minister Bambang Brodjonegoro. “The bank’s concept is to act like a global infrastructure bank with a sharia approach. So, Indonesia, Turkey and the IDB will become its founding members,” Bambang told reporters on Tuesday.

To qualify as a founding member, Indonesia must contribute more than US$300 million.

more: RI set to join sharia infrastructure bank | The Jakarta Post
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Indonesian Mariculture Products Possess Significant Global Market Potential

JAKARTA, May 26, 2015 - (ACN Newswire) - The Indonesian government, through the Marine Affairs and Fisheries Ministry (KKP), is focusing on increasing the production of cultured fishery products as these commodities have huge potential in the global market, a senior official stated.

"Mariculture products have high economic value as they have immense global market potential and good export prospects," Director General of Cultured Fisheries Affairs of the KKP Slamet Soebijakto noted in a press statement received by Antara here on Monday. He emphasized that the government needed to develop fishery zoning in the regions to facilitate the development of mariculture.

For instance, to promote seaweed development, the cultivation areas will be located up to four miles along the coastlines while in areas located four miles and beyond, seaweed will be developed using the floating net cage (KJA) equipment. Fish commodities to be developed in the zoning system will be adjusted to the local conditions. Fish species will include snapper, grouper, pomfret, starfish, abalone, or tuna.

more: Indonesian Mariculture Products Possess Significant Global Market Potential - NASDAQ.com
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Indonesia's shipping industry estimated at US$20b

JAKARTA: Indonesia's Investment Coordinating Board (BKPM) wants to develop the country's shipping industry. The Board said the industry has a multiplier effect which is able to spur growth in other sectors of the economy and create employment.

“The potential for the shipping industry is huge - the demand for ships not only for cargo, but also passenger ships, ferries, fishing boats and so on. So, we are inviting investors to fill that demand,” said Franky Sibarani, head of BKPM on Tuesday (May 26).

The Indonesian Chamber of Trade and Industry values the shipping industry at US$20 billion. This is before taking into account the potential of the country's maritime economy worth US$171 billion.

more: Indonesia's shipping industry estimated at US$20b - Channel NewsAsia
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~ Indonesia - Iran Relation ~

Indonesia Keen to Boost Oil Import from Iran

Indonesian Economy Minister Sofyan Djalil voiced his country's willingness to boost import of Iranian crude supplies and Tehran's experience in building refineries.

"Indonesia is currently importing between 800,000 to 900,000 barrels of Iranian crude which can be increased," Djalil said in a meeting with Iranian Communications and Information Technology Minister Mahmoud Vaezi in Tehran on Sunday.

The Indonesian economy minister pointed to the meeting of Iran-Indonesia Economic Cooperation Commission held on Saturday, and said, "During the commission meeting, we discussed building an oil refinery in Indonesia by utilizing Iran's energy capacities."

more: Farsnews
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Indonesia Keen to Start Jakarta-Tehran Direct Flights

Indonesian Economy Minister Sofyan Djalil in a meeting with Iranian Communications and Information Technology Minister Mahmoud Vaezi in Tehran on Saturday called for the establishment of direct flights between the two countries' capitals.

"We need to continue our negotiations with regard to establishing direct flights between Indonesia and Iran to enable the two countries' traders and ordinary people to travel easily," Djalil said during the 11th Iran-Indonesia Economic Cooperation Commission Meeting.

more: Farsnews
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Tehran, Jakarta ink MoU

Iran and Indonesia ended the 11th meeting of joint economic cooperation commission on Sunday by signing an MoU.

The MoU was signed by the Minister of Communications and Information Technology Mahmoud Vaezi and visiting Indonesian Coordinating Minister for Economic Affairs Sofyan Djalil, IRNA reported.

Speaking at a press conference, also attended by Djalil and his delegation, Vaezi stressed that the two sides are determined to strengthen relations between their private and public sectors.

more: Tehran, Jakarta ink MoU
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Iran agrees to develop hydro power projects in Indonesia

The Iranian Government has finalized agreement to develop 48 hydroelectric power plants in Indonesia.

Iranian Energy Minister Hamid Chitchian and Indonesian Economics Affairs Coordinating Minister Sofyan Djalil have signed the deal.

Chitchian told MEHR News Agency: "Iranian power plant companies, whose technical capabilities are internationally competitive, could help Indonesia in building power plants; currently, 11,700MW of hydroelectricity is distributed in national grid, which indicate the capabilities necessary for cooperation with Indonesian government to that end."

Indonesia intends to build small-sized hydroelectric power plants ranging between 1MW and 10MWin the next five years.

more: Iran agrees to develop hydro power projects in Indonesia - Energy Business Review
 
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Indonesia's shipping industry estimated at US$20b

JAKARTA: Indonesia's Investment Coordinating Board (BKPM) wants to develop the country's shipping industry. The Board said the industry has a multiplier effect which is able to spur growth in other sectors of the economy and create employment.

“The potential for the shipping industry is huge - the demand for ships not only for cargo, but also passenger ships, ferries, fishing boats and so on. So, we are inviting investors to fill that demand,” said Franky Sibarani, head of BKPM on Tuesday (May 26).

The Indonesian Chamber of Trade and Industry values the shipping industry at US$20 billion. This is before taking into account the potential of the country's maritime economy worth US$171 billion.

more: Indonesia's shipping industry estimated at US$20b - Channel NewsAsia

Ironic, the government talk about how big the multiplier from shipping industry, at the same time killing the small local shipping company using new regulation.

Kementerian Perhubungan (Kemenhub) memberikan batas waktu hingga Februari 2016 kepada para pengusaha di bidang pelayaran yang sudah memegang izin usaha angkutan laut, agar memenuhi persyaratan modal dasar minimal Rp 50 miliar dan modal disetor minimal Rp 12,5 miliar. Apabila hingga batas waktu pihak operator tak mampu memenuhi persyaratan tersebut, izin usaha yang dipegang akan dicabut oleh regulator.

Polite way to close small shipping company with less than 3-5 ship and reduce competition for the bigger player.
 
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Polite way to close small shipping company with less than 3-5 ship and reduce competition for the bigger player.

Or maybe a way to force them doing joint venture and form bigger, more professional and more profitable business.
 
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Or maybe a way to force them doing joint venture and form bigger, more professional and more profitable business.

Using the same logic, the government should make the same regulation and close all the small shop/stall, traditional market, farmer, fisherman or any small private business. Forced them to joint venture.

In the end more competition is always good for customer. Usually in smaller port town, there's only 1 big player who bother to service the port and 2-3 small shipping company. Without competition the big player can easily jack up the price and/or reduce the service quality.
 
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Using the same logic, the government should make the same regulation and close all the small shop/stall, traditional market, farmer, fisherman or any small private business. Forced them to joint venture.

In the end more competition is always good for customer. Usually in smaller port town, there's only 1 big player who bother to service the port and 2-3 small shipping company. Without competition the big player can easily jack up the price and/or reduce the service quality.


I do agree that more competition mean better price & option for customer. I don't know what the real reason behind the regulation. What about safety reason in public transport business? shipping for cargo and public transport by the sea is considered vital and can be dangerous if managed carelessly, just like the air transport. The fatality can be substantial if bad thing happen on the sea.

We all familiar with 'sinking overcapacity boats' story. That's alone is an enough reason to tighten the regulation and force the players in shipping business to operate more professionaly and bring more safety factor into consideration.
 
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