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CONSULATE GENERAL OF THE REPUBLIC OF INDONESIA, MUMBAI, INDIA
VOLUME 5 / MAY 2007 MONTHLY
THE SEASON OF INDONESIAN
CULTURAL HERITAGE & CRAFT 2007
July 11-15, 2007
at Jakarta Convention Centre, Jakarta - Indonesia
Visit : http://www.indonesiaheritageproduct.com
Indonesian extensive diversity of cultural heritage and craft products have long been admired, appreciated and studied by worldcommunities. For gaining more comprehensive information as well as procuring them as private collection or business investment,you are cordially invited to : The Season of Indonesian Cultural Heritage & Craft 2007. Jakarta Convention Center, 11 – 15 July 2007.
Under the theme "Diversity of Indonesian Cultural Heritage & Craft for the World", The Season of Indonesian Cultural Heritage & Craft2007 is designed to be attractive, innovative, communicative and educative, by highlighting the inherited vast variety of Indonesianculture, produced by creative and skillful Indonesian art workers.
Products Exhibits : The Season of Indonesian Cultural Heritage & Craft 2007 showcase the best of Indonesian Heritage Products
and Craft that is well-known all over the world as one of the finest in craftsmanship. Come and fest your eyes, mind and be inspired
on the finest of Indonesia: • Indonesian Heritage Products • Fabrics and Woven Products • Wood & Rattan Profducts • Embroidery
• Earthwares, Marble & Decorative Ceramics • Leather Craft • Furniture and Interior • Toys • Metal Craft (including tin) • Traditional
Musical Instrument • Plaiting Craft • Fine Arts • Fashion Accessories & Gems • Traditional Food & Beverages • Batik • Herbal Products
& Spa.
Whether you’re a beginner, an enthusiast or an expert, you’re sure to find and learn something new. Find and discover vast varietiesof Indonesian most excellent products and crafts you’ve been long looking for, meet the producers, craft workers, and collectorsof Indonesian fine arts all over the world. While you're there, don't forget to attend our workshop, products demo, traditional (dance,music and fashion) performance, clinic consultation and seminar held in order to provide more and more information regardingIndonesian Cultural Heritage and Craft Products just for you !.
Exhibitor Profile : • Arts and Craft communities nationwide • Arts and Craft Associations • Universities with Fine Arts Department
• Research & Development Agencies.
Visitor Profile : • Central and Local Government officials • Foreign Ambassadors and Trade Attache • Indonesian business
communities • Professionals and Executives • Foreign Buyers • International Trade Associations • Academics • Non-Governmental
Organizations • Students.
Organized by : • The Coordinating Ministry for People’s Welfare • Ministry of Home Affairs • Ministry of Foreign Affair • Ministry of
Industry • Ministry of Trade • Ministry of Culture and Tourism • Ministry of National Education • Ministry of Justice and Human Rights
• State Ministry of Cooperatives and Small and Medium Enterprises • State Ministry of State-Owned Enterprises • State Ministry for
Research & Technology • Ministry of Communication and Information • Indonesian Chamber of Commerce and Industry • National
Crafts Council.
Co-Organized by : PT Debindomulti Adhiswasti, Jl. Tebet Timur Dalam III No. 1 & 22, Jakarta 12820, Indonesia Phone : (+62-21) 830
9716, 831 0656, 829 3677, 829 2661, 829 2667 Fax : (+62-21) 829 3680, 831 3073 Email : debindo@cbn.net.id Website :
www.debindo.com Contact Person Ms. Prietha Mobile : +6281511886388 Email : prietha@debindo.com
ECONOMY GROWS 6% IN FIRST
(BKPM), foreign investment in Riau amounted to about US $1.8 QUARTER : Strong exports and
billion last year, the second biggest amount among the country’s 33 provinces. Meanwhile, domestic investment in the province reached Rp 20.8 trillion (about US $2.3 billion), the third biggest.
quarter, momentum that could see itgrow even faster over the course of BAPPENAS WILL ESTABLISH GOODS AND MONITORING
CENTER : The Indonesian National Planning Agency (Bappenas)
by the end of this year will establish the National Programme Office or goods and services center. This office is a development of the directorate which monitors goods and services procurement Central Statistics Agency (BPS) reported. On a quarterly basis, process. The establishment of this body, according to Secretary the size of Indonesia’s economy grew by 2 percent to Rp 915.9 of State Minister for National Planning Agency concurrently Head trillion (US $101.7 billion), from last year’s final quarter. Exports of Bappenas, Syahrial Loetan, refers to the Presidential Decision became the economy’s main thruster, growing by 8.9 percent No. 80/2003 on Goods and Services Reformation. In accordance and making it up more than half of the on-year first-quarter growth with its function, Syahrial said this body will directly monitor the at 4.1 percent, as Indonesia gained from the strong demand and goods and services tender process in all state institutions.
prices in the global market for its main commodities of metals,coal, crude palm oil and rubber. Private consumption, which has RI’S EXPORTS AND
been recovering lately due to the easing of inflation and interest IMPORTS FOR APRIL
rates in the country, gave further drive to the economy, growing 2007 : The latest figure
by 4.5 percent and contributing to 2.6 percent of first quarter growth. Fixed investment and government spending also saw growth at 7.5 percent and 4.3 percent respectively, but were still on their usual trend of begining the year modestly. Meanwhile, from the supply side, the BPS noted an on-year 9.3 perent growth in construction and an 8.5 percent expansion in Indonesia’s trade and tourism industry. The Trade and Tourism sector made up 1.4 percent of the total first-quarter growth, just after the manufacturing and processing industry, which grew by 5.4 percent and contributed to 1.5 percent of the growth. BPS chief percent decrease in non-oil and gas exports. The decline is the Rusman Heriawan said that exports have again continued from second time this year that exports have fallen, after dropping 0.44 last year’s final quarter in becoming Indonesia’s main economic percent from January to US $8.32 billion in February. The total growth engine, and pointed out they were favorably developing value of oil and gas exports dropped from US $1.55 billion in into a more sustainable nature for future growth ahead. Private March to US $15 billion in April, while non-oil and gas exports consumption still makes up more than 60 percent of Indonesia’s declined from US $7.6 billion to US $7.3 billion. BPS deputy chairman GDP, while exports and imports account for less than 10 percent.
for statistics Pietojo said that the biggest decline (in the oil and gas The government is expecting growth at 6.3 percent this year, category) was in exports of machinery, including railway rolling and a higher 6.8 percent next year. In terms of unemployment stock and locomotives. Exports of machines and electronic goods and the affects of first quarter growth, the BPS also noted in dropped from US $702 million in March to US $581 million in April.
another separate report released that the number of unemployed On a cumulative basis, however, January-April exports totaled people decreased by 556,000 to 10.55 million in February, from a US $34.55 billion, up 14.82 percent compared with the same period year ago. This comes with another 2.4 million workers having last year. The cumulative figure included a 22.67 percent increase been employed during the same period, bringing the total number in non-oil and gas exports. The government is targetting 20 percent of employed people to 97.58 million. Indonesia’s workforce of export growth this year so as to help it achive 6.3 percent economic people between the age of 15 and 64 years increased by 1.85 growth. Indonesia’s exports hit a record high of US $100.69 billion million to 108.13 million. Unemployment however still remains at a last year. April also saw total imports of US $5.64 billion, an increase high 10 percent, still offsetting the current level of growth needed of 3.86 percent from the US $5.44 billion recorded in March, with to reduce it. The government wants to reduce unemployment to oil and gas imports amounting to US $1.62 billion, representing an approximately 7.76 percent increase. From the start of the yearup until the end of April, the value of total imports amounted to US FOREIGN MINISTRY TO
$21.03 billion, representing an increase of 16.13 percent compared PROMOTE INVESTMENT :
to the same period last year, when the equivalent figure was US to play a greater role inpromoting trade, tourism and INDUSTRY TO GREW 5.83% IN FIRST QUARTER : The Indoensian
Industry Minister, Fahmi Idris said that the Industrial sector grew 5.83% in the first quarter this year compared to 2.83% in the same period last year. Fahri Idris said that, however the growth was still below the country’s economic growth of 5.97%. The growth potential of Indonesia’s regions. Indonesian Foreign Minister, was recorded in almost in all industrial sub-sectors, except the Hassan Wirayuda during the launch of the first “Update from the textile and wood-based industries. According to Industry Regions” forum said that “Through these forums, we are hoping Department data, wooden and forestry product industries shrank to use our diplomacy to promote mutually beneficial economic by 1.74% while textile, leather goods and footwear product transactions”. This forum will also promote interaction between industries only grew 0.68%. The food, beverage and tobacco the diplomatic community, businesspeople and local industries grew by 9.84%, paper and printing product industries administrations. The launch of the forum was attended by 12.47%, fertilizer, chemical and rubber-based industries 7.05%.
ambassadors from some 30 countries, mainly from the Middle Other industries such as cement, non-metal mining industries grew East, Europe and Africa, as well as representatives of national 6.97%, basic iron and steel industry 2.11%, transport, machineries and international business associations. Riau province, located and equipment 3.98% and other goods 3.6%.
near Singapore had been chosen as the first province to befeatured by the forums, which are to held regularly. Riau which RI EXPECTS US $222 MILLION FOR TEXTILE SECTOR : Following
produces oil, gas, crude palm oil, and pulp and paper, has become discussions with the country’s banks, the government hopes that a major destination for foreign and domestic investors. According they will help revitalize the textile industry by providing up to Rp 2 to the data from the Indonesian Investment Coordinating Board trillion (US $222 million) in loans this year to support the government’s own Rp 255 billion reequipment program for the and North Sumatra. According to the ministry’s 2008 businesssector. The government plans to increase its support fund to Rp plan, these development projects are based on the assumption1.27 trillion over the next five years, with the banks expected to that the ministry will get Rp 15 trillion next year, a 49 percentfollow suit in committing up to Rp 8.5 trillion in lending. The country’s increase over its budget for this year. Indonesian Transportationtextile and garment industry may need some Rp 50 trillion to finance Minister Hatta Radjasa said that the government will distribute thecomplete reequipping, with 80 percent of the machinery currently funds propotionately to those provinces infrastructurein use being over 20 years of age, stated by Anshari Bukhari, the development in Papua and West Irian Jaya which has beenIndustry Ministry’s Director General for Metals, Machinery and identified as a priority. The ministry will allocate Rp 1 trillion forTextiles. Anshari Bukhari stated that the textile and garment industry expanding existing ports and airports, and building new ones inlast year contributed US $9.4 billion of Indonesia’s total exports of the two eastern provinces, it includes the expansion of sevenUS $100.6 billion last year and provided employment for some 1.8 strategic ports in Papua at a cost of Rp 86 billion. The constructionmillion workers. The government expects exports from the sector of more seaports and the provision of more ferries archipelagicto grow to US $10 billion this year, having rolled out last month a provinces, such as Maluku, North Maluku, East Nusa TenggaraRp 255 billion financial support program to allow the industry to and North Sulawesi, would also be prioritized so as to shortenrequip. A total of Rp 175 billion will be used to subsidize the interest travel times in these regions. Another large chunk of the moneyof loans taken out by large-scale textile companies to purchase will be spent on the construction of the new Kualanamu Airport innew machinery, while the remaining Rp 80 billion will be disbursed North Sumatra (Rp 930 billion) and Lombok Baru Airport (Rp 515as soft loans to smaller textile firms. Some 150 companies are billion) in West Nusa Tenggara, and on expanding Hasanuddinexpected to receive between Rp 100 million and Rp 5 billion under Airport, which will cost about Rp 491 billion. The ministry willthe program.
continue funding the construction of the Kualanamu Airport andHasanuddin Airport through 2009. The ministry’s plan also states RI BETTER PLACE FOR INVESTMENT IN OIL AND GAS that it will provide Rp 200 billion for the expansion or construction
EXPLORATION AND PRODUCTION : Indonesian President H.E. of 27 small airports in remote and disaster-hit areas, including
Mr. Susilo Bambang Yudhoyono has recently pledged to make Banda Aceh, Nias, Meulaboh, Nunukan, Atambua, Alor, Tanah Merah
Indonesia a better
and Nabire. Hatta said capital expenditure in the transportation sector would be aimed at supporting economic growth. Hatta Radjasa said that Transportation is the backbone of the economy as it has an important role to play in reducing the costs of distribution FOREIGN FIRMS TO BUILD RUBBER FACTORIES : Three foreign
companies have completed construction of rubber processing factories in the country. The executive director of the Association of Rubber Companies (Gapkindo) Suharto Honggokusumo said that Itochu from Japan builts its factory in Jambi, Mardex Bhd from Malaysia in South Sumatra and Trans Corp. from Thailand in South Sumatra. The factories were built to meet growing demand for Convention and Exhibition in Jakarta, Yudhoyono said that the rubber especially on the domestic market. Demand for naturalgovernment was in the progress of creating a better and friendlier rubber in the country totaled 355,000 tons last year exceedinginvestment climate for energy companies. In addition to removing target of 250,000 tons, adding this year demand is forecast to risemonopolies in both the upstream and downstream oil and gas further by 10%. Meanwhile, PT Astra Agro Lestari plans to expandindustry, the government also in revamping its policies to make the its rubber plantations by 100,000 hectares with an investment ofoil and gas industry more attractive to local and foreign investors. Rp1 trillion (US $111 million).
Indonesian President cited the recently passed investment law,which provides greater business certainly and equal treatment RI TO CREATE 1.5 MLN
for domestic and foreign investors, as a major step in efforts to HECTARES OF OIL PALM
make Indonesia a better place for doing business. Indonesia, once PLANTATIONS UNTIL 2010 :
one of the most important oil exporters in the world, has become a net oil importer in recent years due to a continued decline in crude production. The country, now the second smallest member of the organization of Petroleum Exporting Countries, is in dire need of private investment to boost oil and gas output at its aging fields. Indonesia’s oil production reached its peak in 1977, at approximately 8.3 billion cubic feet per day, down or roughly a Oil Commission (KMSI), Rosediana Suharto said that starting this37.5 percent decline, making the country a net oil importer. Natural year expansion would begin in stages reaching 1.5 million hectaresgas has fared better, with production averaging approximately until 2010 consisting of 1.375 million hectares of new plantations8.3 billion cubic feet per day, down just 3.44 percent from its peak and 125,000 hectares of replanted plantations. Rosediana saidof 8.7 billion cubic feet per day in 1996. Earlier this year, the that the new oil palm plantations would be developed outsidegovernment announced a target of increasing oil and gas Java. There would be a production hike of 200,000 tons a yearproduction by 30 percent to 1.3 million barrels per day and 8.5 following the development of the new plantations. In the Nationalbillion cubic feet per day, respectively by 2009. Also speaking at Industry Roadmap 2010 and Vision 2030 made by the Indonesianthe convention was Energy and Mineral Resources Minister Chamber of Commerce and Industry it is stated in 2005 the widthPurnomo Yusgiantoro who said that the government was serious of oil palm plantations in the country only reached 5.2 millionabout transforming Indonesia into a good place for investment, hectares with production reaching 13.5 million tons. With productionespecially in the vital energy sector. The energy sector currently assumed to grow around six percent a year and land productivityaccounted for about 30 percent of the country’s total revenues. reaching 2.6 tons per hectare, the country’s palm oil production inThe minister also unveiled a government plan to auction off 21 oil 2010 is expected to reach 18 million tons and oil-palm fruitand gas blocks in July. Most of the blocks are located in frontier production 6.6 million tons. In 2020 the country’s crude palm oilareas, including in the Natuna Sea, Papua and Timor Islands.
production is expected to reach 30 million tons and the total widthof oil-palm plantations 10.7 million hectares and in 2030 the figures RI TO FOCUS ON REMOTE AREAS IN 2008 : The Transportation will change respectively to 50 million tons and 17.4 million hectares.
Ministry will focus its capital spending on remote and disaster-hit
areas in 2008, with Rp 3 trillion (US $333 million) having been set RI’S NATIONAL INDUSTRY GROW IN FIRST QUARTER : Indonesian
aside to build and expand airports and seaports in Papua, Maluku Industry Minister Fahmi Idris said that Indonesian National Industries
grew 5.83 percent in the first quarter this year compared to 2.83 engage in the rayon fiber industry as raw material of rayon fiber
percent in the same period last year. However, the growth was in the form of pulp is abundant in the country. Meanwhile, PT
still below the country’s economic growth recorded at 5.97 percent. South Pacific Viscouse Marketing Manager for ASEAN Ida Purname
The growth was recorded in almost in all industrial sub sectors Sirait said that in past few years domestic demand for rayon fiber
except textile and wood-based industries. According to the rose 30 percent a year. In the past three years demand for rayon
Industry Ministry data, wooden product and foresty product fiber rose around 30 percent per year and its tends to increase
industires grew minus 1.74 percent while textile, leather goods this year and next year.
and footwear product industries only grew 0.68 percent. The
food, beverage and tobacco industries grew 9.84 percent, paper FOREIGN, LOCAL FIRMS TO BID ON COALBED METHANE
and printing products industries 12.47 percent, fertilizer, chemical, FIELDS : Eight foreign and local companies will take part in the
rubber-based industries 7.05 percent. Other industries such as country’s first-ever exploration and production tender for coalbed
cement, non-metal mining industries grew 6.97 percent, basic methane (CBM) gas in August this year. The Energy and Mineral
iron and steel industry 2.11 percent, transport, machineries and Resources Ministry’s Director for the upstream oil and gas industry,
equipment 3.98 percent and other goods 3.6 percent. Based upon Priyono said that the companies would include Australia’s third
the data, total growth of non-oil/non-gas industries in the first largest oil and gas producer, Santos, US-based Vico, Indonesian
quarter was recorded at 5.83 percent. The ministry was expecting state oil and gas company Pertamina and Medco Energi
the country’s industrial growth to reach 7.9 percent, up from the International, the country’s biggest publicly trade oil company, and
year before when the figure was 5.27 percent. Industrial growth gas distributor Perusahaan Gas Negara (PGN). The tender will be
last year was lower than the 5.86 percent recorded in 2005. The conducted on a direct offer basis, with companies having carried
industry ministry had set a target of 8.4 growth in 2008.
out a feasibility study to be given priority. CBM fields to be tenderedare located in South Sumatra and in Barito, South Kalimantan.
RI TO INCREASE They are estimated to have deposits of 183 trillion cubic feet and
COTTON PRODUCTION 101.60 trillion cubic feet of gas, respectively. These two areas
IN 2010 : The Imports, are beleived to hold the largest CBM deposits in the country. Energy
Director General of and Mineral Resources Minister Purnomo Yusgiantoro has called
Plantations Achmad on oil and gas companies to begin investing in the coalbed methane
Manggabarani said that sector. Indonesia has the largest CBM deposits in the world after
Indonesia plans to China, with estimated total reserves of 453 trillion cubic feet, or
increase its cotton the equivalent of about 81.5 billion barrels of oil. If it was able to
production to 70,000 tons tap these reserves, Indonesia could meet its gas export
in 2010 to reduce its commitments while at the same time filling rising domestic demand.
dependence on imports. The domestic need of cotton at present The government recently said it was reviewing its liquefied natural
reached 550,000 tons a year but only 5,000 tons of if could be met gas export policy amid an increase in gas demand at home. The
by domestic production and the rest had to be met with imports. government hopes to attract up to US $2.5 billion in investment to
Achmad Manggabarani said that to meet the production target develop 90 CBM wells expected to produce up to 100 million cubic
they plan to open 50,000 hectares of cotton plantations until 2010 feet of gas per day by 2014.
and raise productivity to 1.4 tons per hectare. Achmad said that at
present productivity of cotton plantations in Indonesia reached RI SIGNS DEAL FOR
only 0.6 tons per hectare because the seeds the farmers used COAL-TO-FUEL PLANT :
were of low quality. The cotton plantation development program The Indonesian
would be implemented in 55 districts in seven provinces, namely government has signed a
Central Java, East Java, Yogyakarta, Bali, East Nusa Tenggara preliminary agreement with
and South Sulawesi. At a production rate of 70,000 tons a year, 11firms to build a US $1.3
national cotton plantations contribution to the domestic textile billion coal liquefication
industry and textile production would reach 4.7 percent or up 0.5 plant. The companies are
percent from the present level. In 2006, cotton plantation mostly major coal
development reached 8,980 hectares producing 4,191 tons of producers in Indonesia,
raw cotton equivalent to 1,397 tons of processed cotton to including PT Adaro Indonesia, PT Bureau Coal, PT Bumi Resources,
contribute 0.3 percent to the textile industry and textile production. PT Tambang Batubara Bukit Asam and PT Bayan Resources. State
Manggabrani stated that three companies would be involved in Oil and Gas firm Pertamina is expected to buy the fuel. Nenny Sri,
the development of cotton, namely PT Nusa Farm in West Nusa head of research and development at the energy ministry said
Tenggara, PT Sukun in East Java, Central Java, Yogyakarta and that the government is encouraging the coal liquefaction project to
Bali and PT Sebo Fajar in South Sulawesi. Manggabarani said that reduce oil use. The plant will have capacity of 13,500 barrels per
the country actually had large potentials for cotton plantation day (bpd) commercially operational in 2013. The capacity is
development but it still had yet to overcome irrigation problems expected to be increased to 27,000 bpd in 2017. 2.5 million tonner
because the plantations were located on marginal land.
per year of coal is needed for a 3,500 bpd capacity plant. Indonesiahas nine oil refineries scattered around the Indonesian archipelago RI NEED INVESTMENTS TO INCREASE ITS RAYON FIBER with a combined capacity of around 1 million bpd. But it only
OUTPUT : Indonesia needs more investment to increase its rayon supplies 70 percent of domestic oil product consumption, with the
fiber output as domestic demand for the commodity rises 30 percent remainder coming from imports. Coal production might total 196
per annum. Director General of Metal, Textile Machine and Multi- million tonnes in 2007, a 17 percent rise from 168 million in 2006.
farious Industries Anshari Bukhari said at present domestic demand
for rayon fiber is projected at 200 thousand tons a year, while PTPN XI TO INCREASE PRODUCTION SUGARMILLS : Indonesian
total domestic supplies reach about 120 thousand tons, well below state plantation firm PT Perkebunan Nusantara (PTPN) XI has been
the total installed capacity of 250 thousand tons. To date, Indonesia trying to boost the production capacity of two of its sugarmills.
has two rayon fiber producers, namely PT Indo-Bharat Rayon Adig Suwandi, PTPN XI corporate secretary said that the Djatiroto
and PT South Pacific Viscouse, with a total installed capacity of Lumajang Sugarmill has a processing capacity of 5,700 tons
250 thousand tons a year. Of the total installed capacity, only 120 sugarcane per day, which would be raised to 7,000-8,000 tons
thousand tons are marketed at home and the rest is exported to per day. The processing capacity of the Semboro Jember sugarmill,
Japan, South Korea, China, Thailand, India and the Middle East. PT meanwhile, will be raised from 4,600 tons to 5,500 - 6,000 tons of
Indo-Bharat Rayon and PT South Pacific Viscouse now supply 90 sugarcane per day. The PTPN XI management has plans to build
thousand tons and 30 thousand tons to the domestic market more sugarmills. In the milling season last year, PG Djatiroto
respectively. The government expects the domestic rayon fiber produced 68,170 tons of sugar, and PG Semboro 55,882 tons.
producers to increase their investment and new investors to The production of the suarmills in East Java accounted for 30 pct
of the company’s total production of 404,172 tons.
TRAIN SERVICES OPENED IN FDI : The government has opened
its railway sector to domestic and foreign investors to spur
RI HAS INVITED GERMAN
development of the country’s train network. Indonesian AUTOMAKERS TO MAKE
Transportation Department Director General Soemino Eko Saputro INDONESIA THEIR
said that the Foreign investors can now own up to 95% of PRODUCTION BASES : The
companies providing train services. Saputro said that the government decided to open the sector to foreign investors due to the reluctance of local investors. State-owned PT Kereta Api is the sole provider of passenger train services in Indonesia, which bases and gateways toother Southeast Asian NORTH SUMATERA’S COCOA EXPORTS : North Sumatra earned
countries, pointing to an improving investment climate and the US $12.7 million in foreign exchange from cocoa exports in the
possibility of fiscal incentives. The Industry Ministry’s director first three months of 2007. Fitra Kurnia, official of North Sumatra’s
general for transportation and IT industries, Budi Darmadi said industry and trade office said that the value of the cocoa exports
that European carmakers are seeking new countries to establish from January to March 2007 increased by about US $3 million
their production bases in as the economies of the Asian countries from US $9.4 million in a corresponding period last year. The volume
grow rapidly, particularly those in eastern Asia. Budi and of the cocoa exports also increased to 7,636 tons from last year’s
Indonesian Investment Coordinating Board direct Muhammad Lutfi 7,015 tons in the first three month period of 2006. North Sumatra’s
recently met with automaker executives during a three-day visit cocoa exports go to several countries such as Malaysia, China,
to the German headquarters of Volkswagen in Wolfsburg, Singapore and Thailand. The higher cocoa export earnings
Mercedes Benz in Stuttgart and Audi in Ingolstadt. Budi and Lutfi happened because of an increase in the world cocoa price and in
were in a mission to persuade the executives that they would demand for the commodity.
benefit from opening auto plants in Indonesia. Mercedes Benz
has had an assembly plant in Gunung Putri, east of Jakarta, since N. SULAWESI EXPORTS CANNED FISH TO MIDDLE EASTERN
1985, while the country’s economic crisis forced Vokswagen to COUNTRIES : North Sulawesi in the first quarter of 2007 earned
shut it plant in 2000 after only two years in operation. Budi said US $968,268 from exporting 462.05 tons of canned fish to six
that Audi and Volkswagen, whose plants in China and South Middle Eastern countries. The chief of the export and import section
Korea serve the Southeast Asian and Pacific regional markets, of the North Sulawesi provincial industry and trade office, Johny
were both convinced they would be unable to keep up with Rumagit said that the six countries were Yemen, Syria, Saudi
growing demand should they rely solely on their bases in these Arabia, Egypt, Lybia and Jordan. The province’s exports in the
two countries. Indonesia’s total commercial and passenger vehicle first quarter of 2007 totaled US $135.92 million. The exports went
sales nose-dived to 318,304 in 2006 from 534,000 in 2005 due to to 38 countries. The Netherlands took the lead, importing US $71.79
higher lending rates. Total automotive sales this year amounted to million worth of commodities from the province in the first quarter
84,511 as of March. Sales are expected to increse to 400,000 this of 2007. The United State came in second with US $14.29 million,
year as demand picks up on the back of declining interest rates. followed by China (US $11.51 million), South Korea (US $10.82
According to Budi, the automakers are now looking at Indonesia million) and Germany (US $8.63 million). North Sulawesi’s exports
due to falling lending rates, the faster pace of infrastructure covered coconut powder, canned fish, palm oil, prefabricated
development, the introduction of new car models and the increase traditional houses.
in per-capita income which is growing annually by between US
$400 and US $500, on average. Other pluses included the new SULAWESI OIL REFINERY TO START IN DECEMBER : The regional
Investment Law passed late last month and the Finance Ministry’s investment board of South Sulawesi said that the construction
regulation removing duty from automotive components and raw work on a Rp28.3 trillion (US $3.1 billion) oil refinery in the
materials for automotive component production, which was issued province’s Pare Pare region will begin in December this year.
on April 3 and has came into effect recently for a one-year period. Investment board official Andi Nuralam, said that a joint venture
Previously, import duties ranged from between 5 and 15 percent. between Saudi, U.S. and Indonesian investors is set to be signed,
allowing for work to begin on the project as soon as an RI TO SPEND US $5 BLN TO REVITALIZE SUGAR MILLS : The environmental analysis report on the site is approved. So, far the
Indonesian government is to make US $5 billion in funds available project has been delayed several years from its first conception
to revitalize old sugar mills in the country. Industry Minister Fahmi in 2003, partly because of the long time taken to complete the
Idris said that at present there were only 10 to 20 sugar mills in environmental study.
the country that were under 10 years old. The drop in the country’s TVS READY TO PRODUCE MOTORCYCLES : Indian motorcycle
sugar production was in part related to the technology used in the maker TVS is set to produce various types of motorcycles for the sugar mills and therefore revitalizing their machines would be the Indonesian market at its recently completed assembly plant in main priority. Most of the mills are located in Central and East Karawang, West Java. TVS has invested US $45 million in its plant which had a production capacity of 300,000 units per year.
BLP Simha President Director of PT TVS Motor Co Indonesia said RI SHIPBUILDERS RECEIVE ORDERS FOR CARGO SHIPS : that the company will begin by utilizing 40% of their plant’s
Shipping companies from the Netherlands, Britain and Germany production capacity in the first year and increase the figure to will place orders for cargo ships and tankers worth US $220 80% in the following three to four years and also are raising the million from Indonesian shipbuilding companies. PT Destini Marine investment to US $100 million. Simha added that Indonesia’s and three state shipyards PT Dok & Perkapalan Kodja Bahari, PT motorcycle market was estimated to grow by more than 15% in Dok and Perkapalan Surabaya and PT Industri Perkapalan 2007.
Indonesia are scheduled to sign contracts with the foreign shippingcompanies in July.
ESSAR TO BUILD STEEL PLANT IN CENTRAL KALIMANTAN :
India’s steel giant Essar International Co has secured a license
RI REMOVES IMPORT DUTIES ON HEAVY EQUIPMENT : The from the government to invest around US $1 billion in two steel
Indonesian government has slashed import duties on raw materials projects in Indonesia. Essar will build an iron ore processing plant and components used in the assembly of heavy equipment down with an annual capacity of 2 million tons in Central Kalimantan and to zero pct from 5 pct previously. The move was aimed at a billet processing plant with the same capacity in Cilegon, Bantan.
stimulating growth of the heavy equipment industry in the country. The president of PT Essar Indonesia, KB Trivedi said that Essar is The ruling, applicable for a period of 12 months began on Oct 30, seeking from the government a tax holiday, new infrastructure 2006 and will be effect until September this year.
and a guarantee of supply of 300 million tons of iron ore over aperiod of 20 years for its project in Central Kalimantan.
SINGAPORE TO BUILD COAL-FIRED PLANTS : PT Truba Alam
South Kalimantan. Currently the company has 200,000 hectares of Manunggal Engineering has signed four contracts valued at Rp3 oil palm plantations with crude palm oil (CPO) production totaling trillion to build coal-fired power plants with a total capacity of 380 917,885 tons last year. With the addition of the 100,000 hectares in MW. President of the Singapore-based company, Arifin Wiguna said 2010, its CPO production is expected to rise to 1.5 million tons a that the contract was signed on April 30 by its subsidiary Tame year. The company also plans to acquire 5,000 hectares of rubber Turnkey Contracting Pte Ltd. The four projects include Kuala Tanjung Plant of PT Eanyza Energy with a capacity of 250 MW, the Lampungplant of PT Central Daya Energi (60 MW), the Pontainak plant of PT BAKRIE BUILDS BIODIESEL PLANT : PT
Equador Manunggal Power (50 MW) and the Bangka of PT Bangka Manunggal Power (20 MW). Arifin said construction of the projects, which are estimated to cost US $900,000 per MW, will start expected to start operating mid next year immediately and they should come on line late in 2008 or early biodiesel annually, mainly for theoverseas market. Indonesian state MEDCO TO BUILD BIOETHANOL PLANTS : The country’s largest
publicly traded oil company PT Medco Energi Internasional plans to build eight bioethanol plants over the next five years to meet the expected surge in the demand for biofuels both at home and overseas. Medco president director Hilmi Panigoro said that the the cornerstone at the four-hectare factory company would spend about US $400 million on building the eight bioethanol plants, which would be capable of producing 10,000 facilities will cost US $22 million to build barrels of oil equivalent per day (boed). The first of the plants was and are expected to employ at least 200 workers. PT Bakrie now under construction in Lampung, with a total investment of Sumatera Plantation will supply the plant with crude palm oil, the about US $46 million. The plant will start producing by December main raw material for producing biodiesel . PT Bakrie Sumatera this year at an estimated initial production of 180,000 liters (about Plantations managing director Ambono Janurianto said 70% of total 1,132 boed). Within the five-year timeframe, Hilmi expected Medco production would be allocated for the overseas market and the rest would build another seven plants with the same production capacities.
The company would seek some 100,000 hectares of plantationland in West Java and Papua, adding to its existing 15,000 hectares ANTAM TO INCREASE MINING : In a bid to add value to its mining
in Lampung. The output of the new plants would mostly be exported, operations, PT Aneka Tambang (Antam), the country’s second largest given the currently high prices for ethanol on the global market.
nickel producer, revealed Tuesday that it would build five alumina Indonesia’s demand for biofuel is expected to reach 5.29 million and nickel smelters at a total cost of US $2.9 billion. Antam’s Deddy kiloliters by 2010, about 9.84 million kiloliters by 2015 and 22.26 Aditya Sumanegara said that the company also known as Antam, million kiloliters by 2025. Hilmi predicted that by 2025 there would planned to build an alumina smelter in Tayan, West Kalimantan, be 371 biofuel plants, which would require a total investment of US and one in Bintan, having installed capacities of 300,000 tons per year and 600,000 tons a year respectively. Deddy said that theconsortium involving Japanese company Marubeni and a BALI TO COMMENCE THERMAL DEVELOPMENT : The province of
Singaporean company Swadeon had been formed in February to Bali is expected to begin the development of a 400-MW thermal provide financial support for the US $220 million Tayan project, power plant (PLTU) around Celukan Bawang port, Buleleng district, while the company was in talks with a number of Chinese companies in an effort to anticipate a power crisis in the island. The thermal as regards the financing of the US $500-million Bintan project. The power plant is expected to commence operation in stages in 2008.
two projects are expected come onstream by 2010. Aside from the The power plant was expected to meet the need for electricity alumina projects, the company also plans to build a nickel smelter supply of Bali for five to ten years to come. The plant will use coal worth US $50 million, a ferronickel plant worth US $650 milion and so that its operational cost would be lower than other plants in Bali US $1.5 billion nickel refinery producing nickel and cobalt. The which used diesel oil. So far Bali has been supplied with 580 MW of projects will be built at the company’s mines in Maluku. Deddy said power supplies, consisting of 200 MW from Java, 130 MW from that the projects would increase the company’s nickel production to Gilimanuk power generators, 120 MW from the Pesanggaran diesel more than 50,000 tons per year for the current 20,000 tons.
power plant and 80 MW from the Pemaron gas-fired plant.
ASTRA EYES EXPANSION IN MINING, INFRASTRUCTURE : PT
FIRMS PLANS RAW SUGAR MILLS : Two sugar companies plan to
Astra international, the country’s largest automotive distribution set up the country’s first raw sugar mills with a combined annual company, is considering expanding its interests in mining and production capacity of 22,000 tons. Privately owned PT Sentra infrastructure. Astra president director Michael D Ruslim said that Usahatama Jaya and PT Angel Products plan to set up 15,000 their core business will remain in automobiles, but it is possible the hectare cane plantations and a raw sugar mill with an output capacity company this year will expand to other sectors such as mining and of 110,000 tons a year. They are now exploring Papua and Sumatra infrastructure or toll roads. The company, controlled by Singapore’s for areas to set up the plantations and sugar mills. The country Jardine Cycle & Carriage Ltd, is also in business ranging from currently imports all its raw sugar, which is mostly used by industrial plantations to banking, financial institutions and heavy equipment.
sugar producers with a total installed capacity of 2.18 million tons a In infrastructure, it has interests in water, as well as coal contractor year. It imports raw sugar from countries including Brazil, Australia, South Africa, Mozambiue, Guatemala and Thailand. The associationsaid Indonesia’s raw sugar imports by industrial sugar producers may RI EARNS US $25,000 FROM HANDICRAFTS IN CYPRUS FAIR :
rise by 22.6% to 1.52 million tons in 2007 to meet growing domestic Indonesia earned US $25,737 from handicraft sales at the Cyprus demand from the food and beverage industry. Sugar mills also International Fair (CIF) which took place in Cyprus from May 11 to import raw sugar to fill miling capacity when there is a shortfall in 20, 2007. Indonesia was represented at the fair by four small-and domestic cane production. The government has issued permits to medium size enterprise (SME) companies that displayed their seven sugar mills this year to import 232,563 tons of raw sugar. The products in Hall 9 of the CIF. The Indonesian SME companies that country consumed 4.2 million tons of sugar in 2006 for industrial took part in the exhibitions were Ashahi Furniture & Handicraft, Deli and household use, while domestic output from plantations and Craft Koleksi, Kechiti Art Antique and CV Kerindo. The Indonesian industrial sugar producers totaled 3.4 million tons. The rest was stand was visited by many buyers from neighboring countries such as Turkey besides local buyers. The Indonesian products were ableto compete with those from China, Vietnam and the Philippines.
ASTRA AGRO TO EXPAND OIL PALM : Leading agribusiness
The Indonesian Embassy in Rome suggested that Indonesian company PT Astra Agro Lestari said it will acquire 17,000 hectares companies should also take part in the next exhibition scheduled to of palm oil plantation this year, mainly in East Kalimantan. The held in 2008. CIF is an annual event and this year’s fair was attended acquisition is part of its plan to expand its oil palm plantations by by 350 participating companies from 30 countries including the 100,000 hectares by 2010. Palgunadi said that the process of United States, South Africa, India, Italy, Kuwait, Malaysia, Egypt, acquisition is already in progress for 20,000 hectares in Aceh, 40,000 Singapore, Sri Lanka, Syria, Greece and Indonesia.
hectares in Morowati, Central Sulawesi and 10,000 hectares in MODERN VIRGIN COCONUT OIL FACTORY TO BE BUILT IN NORTH
three months. Garuda spokesman Pudjo Broto said that Garuda is SULAWESI : North Sulawesi will have a modern virgin coconut oil
in third place among Asia Pacific airlines this year for e-ticket (VCO) factory which will be build at an investment value of Rp 1.3 issuance. Garuda, which introduced e-ticketing last March in billion from provincial budget. North Sulawesi Plantation Office compliance with the IATA regulations, offers e-ticketings on all head Rene Hosang said that bid for a contract to build the factory domestic routes and 24 overseas ones. The destinations not covered will finish this year and the factory will be operated next year. The so far are Jeddah in Saudi Arabia, Saigon in Vietnam, Biejing in proposed factory would use stainless steel machinery in a bid to China and Seoul in South Korea. Pudjo added that they will have maintain quality of VCO which was widely known as panacea.
fully implemented e-ticketing for the four remaining overseas Operation of the VCO factory will be handed over to a private firm destinations by October. According to IATA, e-ticketing will result in which is required to make contribution to the provincial coffer. The savings of US $3 billion annually for the airline industry as processing VCO will be produced based on Indonesia’s National Standard (SNI) a paper ticket costs US $10, while and e-ticket costs only US $1. In that it can be exported to many countries. The proposed VCO factory addition, IATA says passengers also benefit from e-ticketing as the inconvenience arising from lost tickets is eliminated and last minutechange are made easier.
OLAM INDONESIA EXPORTS CACAO BEANS : PT Olam Indonesia
has set a target of exporting cacao beans amounting to 50,000 tons
ARRIVALS UP 12.78% FROM JANUARY-APRIL 2007 : During the
in 2007. Spokesman of PT Olam Indonesia company Ferry first four months of 2007 from January through April 2007 Indonesia Rumangkang said that they were optimistic that the target could be received 1.37 million tourists through 15 gateways or up a significant achieved this year. The company exported around 15,000 tons of 12.78% compared to same period last year. Best performance was cacao beans during the January-April 2007 period. The company turned in by Bali. The island received a total of 472,082 visitors, up shipped around 3,000 tons of cacao beans to Malaysia, Singapore a hefty 38.38% when compared to the first four months last year. In and the United States. Meanwhile, data from the Central Sulawesi April, 131,034 tourists came to Indonesia through Bali, 98,101 industry service showed that the province’s cacao bean exports through Jakarta, and 85,951 through Batam. Although arrival figures reached more than 130,000 tons in 2006.
are on the increase nation-wide, averaging 300,000 visitors permonth, this will bring total arrivals this year to around 4.2 million, BATAM TO HOST SMES EXPO : Batam is slated to host the ASEAN
still far below the national target of 6 million for 2007. Despite the Small and Medium Enterprise Expo and Seminar (ASEAN SMES) fact that arrivals from Japan, South Korea, Taiwan and China are on July 4-8. The head of the local chamber of commerce and Trade recovering, Indonesia’s important markets from Europe and Australia Nada Faza Soraya said that all ASEAN nations will take part in the exhibition. The expo will be an opportunity to promote products ofthe small and medium scale businessmen in the region. The expo RI’S TOURISM MINISTRY TARGETS 116 MLN LOCAL TOURISTS :
would also aim to extend the market of export and import products The Indonesian Culture and Tourism Ministry has set a target of 116 as well boost the small and medium industry to develop products to million local tourists visiting various tourist objects in the country in meet the international standard. The other goals of the expo were 2007. The Director for Domestic Tourism Promotion, Titien Soekarya to improve the quality of both the product and service of the trade said that the target was higher than that of last year which was set at and industry as well as prepare them to face the ASEAN free trade 114 million. Titien Soekarya said that her office was optimistic that era. The expo will also promote Batam as the MICE (meeting, the target would be achieve because the previous year’s target of incentive, convention and exhibition) in ASEAN region. The expo 114 million was reached. Titien said that Indonesia had big tourism will among others, exhibit handicrafts, furniture, textile and its potentials which had not yet been exploited so far. Most of the local products, food and beverage, leather-made products, agribusiness tourists only visited the touris objects in Java and Bali, or abroad, and agricultural products, household equipments and cosmetics.
while Indonesia is really rich in attractive places and cultures.
ROYAL DOULTON TO INVEST US $25 MLN IN RI : The Royal Doulton
Company of Britain which has so far invested US $75 million in the
ceramic industry sector in Indonesia plans to increase the amount
by US $25 million. Anthony O’Reilly, the British company’s chairman,
said that with the additional investment, the company would raise
its ceramic wares production capacity in Indonesia from six million
to 12 million pieces per year. The company had decided to make
the additional investment as it believed the Indonesian economy
PATA TRAVEL MART 2007
would undergo continuous development in the next five to ten years.
Besides, Indonesia as a ceramic ware producing country also had September 25-28
certain comparative advantages over other ceramic ware making at Bali International Convention Centre (BICC)
countries. In terms of manpower absorption, the company was Bali, Indonesia
planning to increase the number of its workers from 1,350 at present The Pacific Asia Travel Association (PATA) invites you to join for a bigger, better PATA Travel Mart 2007 (PTM07) in Bali,“Island of Peace” and “Island of the Gods”. Asia Pacific continues CARREFOUR TO OPEN NEW OUTLETS IN INDONESIA : A subsidiary
to enjoy rock solid year-to-date growth in arrivals of about 5% of French retail giant Carrefour, PT Carrefour Indonesia, said it will (so far) in 2006. It is no surprise therefore to find Asia Pacific’s open nine new outlets in the country, Carrefour also opened nine premier business-to-business travel trade event, PATA Travel new outlets last year. The first of the nine units planned this year Mart, growing in tandem with the region. PTM06 in Hong Kong was already commissioned early this month in Denpasar, Bali with celebrated record numbers -- 417 buyer delegates met with 336 an investment of Rp116 billion (US $1.8 million), the President of seller organisations, which occupied a net floor area of 4,076 Carrefour Indonesia Jean Noel Bironnneau said. The nine new outlets square meters. Stringent buyer qualifying procedures have would bring the total number of its outlets in the country to 30, proven to deliver the right geographic and industry mix of quality buyers from key and emerging markets. This will be even furtherenhanced at PTM07. Returning sellers are rewarded with loyalty E-TICKETING TAKES OF IN INDONESIA - IATA FIGURES SHOW :
discounts of up to 15% on space costs, as well as priority booth After long lagging behind in the e-ticketing stakes, 82 percent of locations. PTM07 in Bali promises to reward everyone who is airline passengers in Indonesia now access websites or telephone serious about Asia Pacific travel and tourism:- * More scheduled carriers to have their tickes issued electronically, according to the business appointments * Additional onsite networking International Air Transport Association (IATA). This percentage, the opportunities * An improved buyer-seller breakfast meet * second highest among IATA members in the Asia-Pacific, is higher Insightful educational workshops on exciting emerging markets than the global and regional averages of 79 percent and 67 percent * Newsworthy media sessions and PR opportunities * A chance respetively. Since 2005, IATA has been requiring some 250 of its to rediscover Bali and Indonesia. Join us for three full days of members serving 94 percent of international scheduled air traffic to serious business-to-business discussions and networking adopt e-ticketing by the end of this year. Indonesian National flag opportunities. Register now for PATA Travel Mart 2007! For carrier Garuda Indonesia, which is a member of IATA, said it issued further details please log in to http://www.pata.org.
some 750,000 e-tickets and around 240,000 paper tickets in the first BALI ARTS FESTIVAL
June 16 - July 14, 2007
http://www.baliartsfestival.com/
The Bali Arts Festival is a full month of daily performances, handicraft exhibitionsand other related cultural and commercial activities during which literally thewhole of Bali comes to the city to present its offerings of dance, music andbeauty. On display are trances from remote mountain slopes, forgotten orrecently revived village dances, food and offering contests, classical palacedances, stars of Balinese stage, odd musical performances, "kreasi baru" (new creations) from the dance schools of Denpasar, as well as contemporary choreography and dance companies from otherislands and from abroad.It is a month long revelry that perhaps no other place in the world can put up on such a low budget as theBalinese. Not only is their traditional culture alive and well, but they have a tremendous pride in it.It begins in the villages, where theseka or cultural groups are selected and organized at the regency level, vie with each other to perform the Arts Festival and thusdisplay in front of a large audience the uniqueness of their village of birth and resting place of their ancestors.The Bali Arts Festivalis the Denpasar cultural event of the year, perhaps it would no be too far fetched to suggest that it is the cultural event of Indonesia.
The festival is thus a unique opportunity to see local village culture both "live" and at first hand. Tourists are warmly welcomed. Just10km from the popular Kuta beach area, thousands come to see the most accomplished musicians and dancers perform inDenpasar's, if not Indonesia's, cultural event of the year, Pesta Kesenian Bali, the Bali Arts Festival. The spectacular openingprocession features seven types of complex and vibrant Balinese music ensembles, dance, traditional costume, floats and giantogoh-ogoh dolls. It begins in the villages, where local groups from Bali's 21 regencies vie for the chance to bring their brand oftraditional art to the capital. It is said that everyone in Bali is an artist and the standard and diversity of the island's cultural life isinternationally recognised. The entertainment on offer during the month includes traditional and modern music, dance and theatrefrom both the islands and further afield, puppet shows, more parades and various competitions (food, flowers, coconuts.). A fullprogramme is available on the Bali Paradise website. Most events are held at the Werdi Budaya Arts Centre, a classic example oftraditional architecture which houses a 6000-seat amphitheatre. Artists from across Bali, Indonesia and abroad are bound toparticipate in the 29th Annual Bali Arts Festival from June 16 to July 14, 2007. Conceived and created 29 years ago by Bali'scultural visionary, then-Governor Ida Bagus Mantra, the Bali Arts Festival has grown to become a staple on the Island's culturalcalendar. Night after night from June 16 through July 14, 2007, Bali's best gamelan orchestras, dance and drama groups, andvisiting artists from overseas will take to the stage at various performance venues around Denpasar. This year's festival will seeforeign artists from China and Japan perform. As in year's past, the Bali Arts Festival will commence with a massive parade ofartists and Balinese culture centered in the Renon district of downtown Denpasar commencing at 3:00 p.m. "INDIAN-INDONESIAN TRADE FIESTA 2007"
1 - 3 AUGUST 2007
at World Trade Center, The Atrium, JL Jend Sudirman Kav 29-31, Jakarta 12920, Indonesia
The aim of the Event is to open wider opportunities towards closer and broader relations between the Indian and Indonesian business communities which will create a domino effect to boost trade, business and tourism between the two nations.
Target: - To enhance Trade Activities, Social & Cultural relationship and Tourism - Opening new business opportunity from Participants: Exhibition: 40 booths, Private Company/corporate, Government Institutes, Company: Indonesian and Indian Products: Products of big Industries. Consumers' goods from small & medium enterprise fit for Promoting to export market Activities: 1. Exhibitions, for export product quality from Indonesia and India 2. Sales Promotions, for consumer 3.
Business Meeting between Indian & Indonesian business people 4. Talk Shows, Short Courses, Cultural Shows Organizer: World Trade Center Jakarta, Wisma Metropolitan 1 Fl. 9 Jln. Jendral Sudirman Kav. 29 Jakarta 12920 Indonesia Ph. 62-21-5211125 Fax. 62-21-2511982 website: www.wtcjakarta.org For Event details visit : http://www.kjrimumbai.net/economy/India-Event-Outline-Fiesta-2007-Brief.pdf
For Event Package visit : http://www.kjrimumbai.net/economy/India-Indonesia-Fiesta-Package-Tour.pdf
INDONESIA NEWSLETTER IS COMPILED, PRINTED AND PUBLISHED BY THE
CONSULATE GENERAL OF THE REPUBLIC OF INDONESIA
19, ALTAMOUNT ROAD, CUMBALLA HILL, MUMBAI - 400 026, INDIA.
TEL : (91-22)23511678/23530900/23530940 FAX : (91-22)23510941/23515862
WEBSITE : http://www.kjrimumbai.net E-mail : kjrimumb@bom3.vsnl.net.in

Source: http://www.kjrimumbai.net/newsletter/2007/INLMAY2007.pdf

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