INFRASTRUCTURE PROJECTS OPPORTUNITY

Source: Indonesian Commercial Newsletter - April 2006

Indonesia is undoubtedly in a great need for new infrastructures across the span of the economy. The government of Indonesia has put infrastructure in high priority list for the country's short and medium term development. The government has announced that the country needs around US$ 130 billion to developed new infrastructures projects for the period of 2005-2009 to maintain gross domestic product growth of more than 6% a year over the same period. Of this huge amount of fund needed, the government is able to meet only 17% of the budget, and the remaining 83% is expected to derive from private sectors.
There is, however, some doubt on whether funding is the main problem or is it the lack of legal and operational certainty.

In the first "infrastructure summit" in January 2005, the government unveiled a list of 91 priority infrastructure projects offered to private sectors with an estimated value of US$ 22.5 billion.

Many of the projects were developed in cooperation with state owned enterprises (SOE) prior to the financial crisis but have languished for lack of financing. Valued at approximately US$ 22.5 billion (in aggregate), the sectoral distribution
of the project is as follows:

FOREIGN INVESTOR ALLOWED TO HAVE UP TO 49% OF RETAIL COMPANY

Source: Indonesian Commercial Newsletter - April 2006

The Government of Indonesia has issued a regulation allowing foreign individuals or companies to have up to 49% stake in modern retail companies or shop.

Under previous regulation, foreign investor were allowed to own supermarkets and small shops in the country without specifying the percentage of ownership.

The foreign investors, however, are allowed to have stake indirectly from stock exchange. Direct acquisition or investment of supermarket and shops modern is still banned for them.

The association of retail companies (APRINDO) said the regulation should be more concrete in banning foreign investor from holding the majority stake.

APRINDO secretary general become the majority shareholder if the remaining 51% stake is split by number of local partners.


Key of contact:

ASSOCIATION OF INDONESIAN RETAILING MERCHANTS (APRINDO)
Address:
E-Trade Building, Ground Floor
Jl. KH. Wahid Hasyim No. 55,
Jakarta Pusat 10350, INDONESIA
TEL:(021) 3928545
FAX:(021) 323267
email: aprindo@cbn.net.id

PENDIDIKAN DAN PELATIHAN EKSPOR INDONESIA

Sebagai lembaga pendidikan dan pelatihan ekspor yang berada di lingkungan Badan Pengembangan Ekspor Nasional Departemen Perdagangan, Balai Besar Pendidikan dan Pelatihan Ekspor Indonesia (PPEI) senantiasa siap membantu meningkatkan kemampuan sumber daya manusia para pelaku bisnis, (eksportir maupun calon eksportir), khususnya skala kecil dan menengah, dengan berbagai pengetahuan praktis dan keterampilan yang diperlukan untuk menjadi eksportir handal dan berdaya saing.

Berbagai program pelatihan baik jangka panjang (1-3 bulan) maupun jangka pendek (1-10 hari) dirancang oleh praktisi ekspor dan instruktur PPEI yang berpengalaman, dengan memfokuskan pembahasan atas masalah-masalah aktual perdagangan yang sedang menjadi trend, sesuai dengan kebutuhan nyata dunia usaha.

Selain program pendidikan dan pelatihan dengan sistem tatap muka PPEI juga mengembangkan program Advanced Distance Learning (pelatihan jarak jauh) dengan sistim TV Conference secara interaktif baik tingkat internasional maupun nasional. Pelatihan jarak jauh tingkat internasional telah dilakukan antara lain menghubungkan Jakarta dengan Osaka, Tokyo, dan Bangkok. Sedangkan tingkat nasional menghubungkan Jakarta dengan Surabaya, Medan, Makassar dan Banjarmasin. Kedepan akan dikembangkan pelatihan jarak jauh antara Jakarta dengan negara-negara ASEAN. Program ini dilakukan mengingat lokasi Indonesia yang terpencar di berbagai pulau, sehingga dapat dimanfaatkan oleh mereka yang berlokasi jauh dari Jakarta.

Sejak didirikan pada tahun 1990, sampai saat ini (2005) PPEI telah melatih lebih dari 27.000 peserta dan telah mendapatkan predikat Center of Excellence dalam kerangka kerja ASEAN Economic Ministry/AEM Ministry of Economic Trade and Industry/METI Economic and Industrial Cooperation Committee (AMEICC) Human Resource Development Working Group Japan, yang salah satu kegiatannya adalah menyusun kurikulum bersama di lingkungan ASEAN untuk bidang International Trade. Kegiatan ini sangat mendukung peningkatan mutu dan daya saing usaha kecil menengah Indonesia bukan hanya di tingkat ASEAN tetapi juga internasional.

KEGIATAN PPEI :
PPEI membekali para peserta dengan pelatihan bermutu dan pelayanan pengembangan sumber daya manusia, yang antara lain terlihat dalam hal :

• Program pendidikan dan pelatihan PPEI dirancang sedemikian rupa agar memenuhi berbagai kebutuhan dunia usaha, bekerjasama dengan para praktisi eksportir.
• Bekerjasama dengan lembaga – lembaga baik di dalam maupun di luar negeri, PPEI menyajikan berbagai pelayanan pasca pendidikan dan pelatihan, guna mendorong lahirnya wiraswastawan-wiraswastawan baru ekspor di dalam wadah Inkubator Bisnis Ekspor.
• Simulasi Ekspor dipersiapkan PPEI guna memaksimalkan penguasaan materi ekspor impor bagi para peserta, sehingga peserta memahami secara mendalam proses ekspor mulai dari perencanaan sampai kepada realisasi ekspor dan penerimaan pembayarannya.
• Resource Center dipersiapkan untuk mendukung kelancaran arus informasi yang dibutuhkan oleh peserta dalam kegiatan ekspornya, baik yang berupa literatur maupun yang berupa informasi elektronik.

INDONESIAN TRADE PROMOTION CENTER - SÃO PAULO, BRAZIL

ITPC, shorts for Indonesian Trade Promotion Centre is a Government Organization under the supervision of the National Agency for Export Development (NAFED) . Both institutions are part of the global trade network abroad supervised by the Indonesian Ministry of Industry and Trade, with a common goal to enhance the export of Indonesian products throughout the world.
Facing the rapid growth of the global economy, especially in a very competitive environment, ITPC is expected to bridge and connect the potential traders between countries.


Main Activities of ITPC

• Participation on overseas trade promotions and trade exhibitions
• Organizing business transactions
• Trade Inquiries
• Market intelligence, observing the local government policy,the competitors,and the potential business opportunity in Brazilian business communities
• Matchmaking assistance, arranging the meeting between Indonesian exporters and Brazilian importers
• Providing information on Indonesian product supply by sector and companies
• Providing advice and information on Government trade regulation and procedures

How ITPC HELPS The Brazilian Importers

• Assisting the trade visits arrangement to Indonesia, in an effort to personally meet manufactures and exporters
• Preparing and collecting information on Indonesian companies participating in overseas trade exhibitions
• Providing assistance in coordinating and facilitating business contact between Indonesian exporters and the Brazilian importers.
• Conducting various reports, market briefs, country profile as well as importers profile
• Arranging business contact for Indonesian exporters and Brazilian importers
• Conducting mini display of Indonesian product in the ITPCSP showroom
  
  

Next event in Brazil

1. 15º INTERNATIONAL HANDICRAFT FAIR
   Curitiba - Paraná - Brazil
   Date: 05-14 May 2006
   Place: Parque Barigui
   

More information:

15º INTERNATIONAL HANDICRAFT FAIR
Porto Alegre - RS - Brazil
Date: 19-28 May 2006
Place: Shopping DC Navegantes

More information:

7º EXPOBOR
7º International Fair of Rubber, Technology, Machinery and artefacts.
São Paulo - Brazil
Date: 9-12 May 2006
Place: Expo Center Norte

More information:

TOYS, PARTIES & CHRISTMAS FAIR
São Paulo - BRAZIL
Date: 20 - 23 May 2006
Time: from 9am until 7pm
Place: ITM - São Paulo - BRAZIL

More Information:

ARTMUNDI - WORLD-WIDE HANDICRAFT FAIR
São Paulo - BRAZIL
Date: 11 - 20 August 2006
Place : Anhembi

More information:

Contact ITCP - São Paulo, Brazil
Indonesian Trade Promotion Centre
Alameda Santos 1787, Conj. 111
Cerqueira César
São Paulo - SP
CEP 01419-002
BRAZIL
Phone: +55 11 3263-0472
Fax: +55 11 3253 8126

Director: Djamian Lumban Gaol
Marketing:
Leonardo Djajaraharja
Fabio Sin
E-mail:
itpcsp@terra.com.br
itpcsp@itpcsp.com.br

INDONESIA PLANT TO INCREASE EXPORTS TO MIDDLE EAST

Antara -- 2 May 2006

Abu Dhabi (ANTARA News) - President Susilo Bambang Yudhoyono has asked Trade Minister Mari Elka Pangestu to immediately reactivate the Indonesian Trade Promotion Center (ITPC) in the Middle East with regard to tapping the regional market.

"I have asked the trade minister to reactivate the ITPC again so that it does not stay idle," he said at a press conference here on Tuesday.

He said Indonesia must not be inferior to other countries such as China, India and Malaysia which also wished to increase exports to the region in its efforts to tap the regional market.

"Our export performance must be better," he said.

He said Indonesia wished to increase not only exports of goods but also services and in view of that it had to be active again in promoting its goods and services.

On Qatar the President said Indonesia and the country had agreed to hold a meeting in a near future in Jakarta to discuss concrete steps to increase economic, trade and investment cooperation between the two countries.

The President is here as part of his tour of some Middle East countries including Qatar.

He was accompanied by Coordinating Minister for Economy Boediono, Foreign Minister Hassan Wirajuda, Trade Minister Mari Elka Pangestu, State Minister for State Enterprises Sugiharto and chief of the Capital Investment Coordinating Board Mohamad Lutfi.(*)

RI, SLOVAKIA SIGN ECONOMIC COOPERATION AGREEMENT

Antara -- 2 May 2006

Jakarta (ANTARA News) - Indonesia and Slovakia signed a new economic cooperation agreement here on Tuesday to renew the old one which was made before the latter became a member of the European Union.

The director general of America-Europe affairs of the ministry of foreign affairs, Eddi Hariyadhi, signed the agreement on behalf of the Indonesian government. Signing on behalf of the Slovakian government was State Secreraty/Deputy Minister of Economy Laszlo Pomothy.

Eddi said under the agreement the two countries expressed their committment to free market principles and to promoting and facilitating for a wider economic cooperation between individuals as well as legal entities including business associations.

"In a meeting in Bratislava, Slovakia, earlier the two countries had discussed steps to increase economic cooperation through trade and investment promotions and technical cooperation including promoting the role of businessmen and possible establishment of joint ventures in a third country," he said.

He said the two countries were currently considering to hold the first meeting of the Joint Commission for Economic Cooperation in 2007 to identify various potentials for economic cooperation and formulate concrete steps for the cooperation.

Trade between the two countries in 2005 reached US$97.5 million. Indonesia`s exports to Slovakia reached US$92.8 million while its imports from that country US$4.7 million.

"Slovakia wishes to make the trade more balanced," he said.

Laszlo Pomothy said Slovakia wished to cooperate in the fields of energy, industry, machinery industry, agriculture, chemical and automotive industries, technology, environment, defense industry, health, road construction and railway system.

"Slovakia has also offered investment cooperation in manufacturing and tourism particularly in view of its position as an entry gate to Europe," he said.

Asked about priorities of economic cooperaton he said that Indonesia and Slovakia still had yet to determine them in the next meeting.

Pomothy said the president of Slovakia planned to visit Indonesia to strengthen the cooperation between the two countries.

"The schedule still has yet to be adjusted to the activities of the Indonesian President," he said.

Slovakia`s director general of trade and tourism of the ministry of economy Josef Harvath meanwhile said Indonesia would benefit much from its cooperation with Slovakia following the latter`s membership in the EU.

"By cooperating with Slovakia, Indonesia could at the same time also cooperate with other EU member countries," he said.

He said tourism cooperation between the two countries was potential. He said around 4,000 Indonesians were in Slovakia every year. "The figure is based only upon visa requests and therefore it could be higher as some other might come there though other Euroopean countries," he said.(*)

SAUDI ARABIA INVEST US$4 BLN IN INDONESIA

Xinhuanet -- 2 May 2006

Saudi Arabia to invest US$4 bln in Indonesia's oil sector www.chinaview.cn 2006-05-02 20:13:16

JAKARTA, May 2 (Xinhua) -- Saudi Arabia would invest about 4 billion U.S. dollars in Indonesia for building an oil refinery with total capacity of 400,000 barrels per day (bpd), said Iin Arifin, vice presidential director of Indonesian state oil firm Pertamina, here on Tuesday.

Arifin said that currently Pertamina was conducting a feasible study and the result would be reported to Indonesian Vice President Jusuf Kalla next week.

"To build a refinery with capacity of about 100,000 bpd, we need 1 billion US dollars (on average), so for the Saudi Arabian project, it needs about 4 billion U.S. dollars," said Arifin.

He said that Saudi Arabia would supply the crude oil to be processed at the refinery, then the production would be fully consumed for Indonesia's domestic need.

Now Indonesia still imported 300,000 bpd of oil to meet its consumption, he said.

MARINE BUSINESS MANAGEMENT GOING TO PRIVATIZE

TEMPO Interactive, Jakarta: The management of the marine sector will be fully transferred to private parties. The government's role has been so dominant that maritime industrial growth was slow.

Marine Affairs and Fisheries Minister, Freddy Numberi, said the transfer to private ownership will be in the form of business renovation. To develop the privatization of the marine business, the government will invite foreign investors to provide the funds. “Until now, marine management has been obstructed by bureaucracy. We will transfer it to private parties soon.” he said yesterday.

Freddy admitted there are many regional regulations that became obstructions for investment activity. As a result, several foreign investors were slow in realizing their investment and they were only noted in the files of the Investment Coordinating Board.

Starting 2007, said Freddy, he will intensify the coordination system in the central and provincial governments, besides expediting investment and coordination for budget efficiency. Next year, the allocated fund for the Marine Affairs and Fisheries Department will be Rp3.02 trillion. Eighty percent will be allocated for regions.

Freddy said in the next five years, marine sector development will face serious challenges, some of which are conflict among fishing groups from different areas, illegal fishing, and the Indonesian outer islands' management. “The other problem is the rise of production costs due to the fuel oil price increase,” he said.

OIL AND GAS EXPORT RISE IN Q1

The Jakarta Post, Jakarta

A recent rise in the value of oil and gas exports amid rising crude oil prices has helped boost Indonesia's already strong export performance for bituminous fuels and rubber by 12 percent during the first three months of the year as compared to the same period last year.

Indonesia's total exports from January to March 2006 reached US$22.3 billion, the Central Statistics Agency (BPS) reported Monday, compared to $15.5 billion during last year's first quarter.

The country's oil and gas exports up to the end of March surged by almost 19 percent to $5.1 billion, as international oil prices averaged around $62 per barrel. The price of oil has now increased further to $72 per barrel.

In March alone, exports of oil and gas increased by 4 percent to $1.7 billion from February, BPS director Choiril Maksum said, as Indonesian crude prices for the month rose to US$61.72 a barrel from $61.19 in February.

Combined with non-oil and gas exports during the month, which saw an incidental rise in exports of fisheries products, March's total exports rose to $7.4 billion, up 1.33 percent from February.

The country's non-oil and gas exports, accounting for more than three-quarters of the country's total exports, rose nearly 11 percent to $17.2 billion in the first quarter from last year's first quarter, with the main markets being the 25 nations of the European Union, the U.S. and Japan.

Of first quarter non-oil and gas exports, shipments of bituminous fuels, which include Indonesia's abundant coal resources, saw the biggest increase -- almost 53 percent -- to book a value of $1.32 billion as compared to $867 million in last year's first quarter.

Following bituminous fuels, exports of rubber and rubber products also enjoyed a significant increase of 21 percent to $1.25 billion. The prices of both coal and rubber have been gaining lately on the global market.

Exports of furniture, however, fell 6 percent to $516 million in the first quarter.

The BPS also reported that Indonesia imported a total of $13.23 billion worth of goods between January and March, down 2.54 percent from the same period the previous year, with most of the imports coming from Japan, China and the U.S.

A positive signal for the economy is that imports of capital goods rose 21 percent to $2.2 billion in the period, reflecting a revival in investment and the future production of local industry, although imports of raw materials declined 8 percent to $9.7 billion, which could signify still slowing consumption.

Overall, the country had a trade surplus of $9.12 billion in the first three months of 2006, a 44 percent jump from the $6.29 billion recorded in the same period last year.

The government expects Indonesia's total exports to continue growing by between 7 and 13 percent this year from last year's record high of $85.6 billion.