BAKRIE START CONSTRUCTION OF US$ 350 MILLION 'SUPERBLOCK'

The Jakarta Post, Jakarta

Publicly listed property firm PT Bakrieland Development Tbk kicked off the construction Wednesday of the Rp 3.5 trillion (US$368 million) Rasuna Epicentrum "superblock" in Kuningan, South Jakarta.

The development will consist of an office tower, apartments, a concert hall, a media center and a park along a nearby riverbank.

President director Marudi Surachman, accompanied by the other members of the Board of Directors, led the groundbreaking ceremony at the 44.7-hectare site in front of the company's Rasuna Club near Jl. Rasuna Said.

"This officially starts the construction of the infrastructure for the whole superblock," he said.

The infrastructure he referred to includes basic facilities, such as the drainage system, and electricity, telecommunications, water and gas networks, as well as the waste treatment system and access roads.

"Infrastructure is the most important part of this project. As a superblock, the Rasuna Epicentrum will boast high quality buildings that provide all possible comforts to tenants and visitors," Marudi said.

He added that the construction of the infrastructure would be carried out in three phases and was expected to be completed in less than two years.

Bakrieland has appointed local contractor Hutama Karya to construct the infrastructure.

While the infrastructure was being developed, Bakrieland would also start on the construction of a 48-story office building, to be called the Bakrie Tower, as well as the Epicentrum Walk, the Lifestyle Center and an apartment building. It would also renovate the existing Pasar Festival shopping center.

The entire development was expected to be completed in 2010.

According to chief marketing officer Ferry S. Supandji, 80 percent of the space in the Bakrie Tower has already been sold, even though construction will not start until July.

"We have sold about 50,000 square meters out of the total floor space of 60,000 square meters. Most of those taking space in the tower are member companies of the Bakrie Group. A number of other companies, including foreign firms, have also taken space," he said.

Marudi said the "superblock" would be unique in the capital.

"For example, people walking along the Epicentrum Walk will be treated to music and performances by entertainers every day," he said.

JAPAN ALLOCATED RP. 3 TRILLION FOR RAIL PROJECT

TEMPO Interactive, Jakarta: Japan has allocated about Rp3 trillion for a four-track railway line project.

These funds will be utilized to construct the first phase of a four-track railway line between Manggarai and Bekasi.

“The funds have not been spent because we are still negotiating with land owners,” Yoyo Sulaiman, head of the project, said yesterday (11/6) in Jakarta.

Japan, Yoyo said, has asked that there will not be any tender offered to any parties if the team has not finished negotiating with land owners.

“So, if the lands have already been purchased, we'll carry out the tenders,” he said.

Yoyo said he plans that the first phase of land purchasing will be accomplished this year.

As for the second phase, he has cannot yet confirm when the purchase will be completed.

ADB WILL LOAN INDONESIA US$900 MILLION

TEMPO Interactive, Jakarta: The Asian Development Bank (ADB) will loan between US$800 million and $900 million to the Indonesian government. This was conveyed in a meeting of the Consultative Group on Indonesia (CGI) in Jakarta, today. “This is a soft loan with market interest,” said ADB Director Edgar Cua, in Jakarta yesterday (12/6).

Edgar said the loan will be used for the economic reform program, and infrastructure project and program. The loan will also be used for development in social welfare including education and health. For 2007, ADB has also planned to lend between US$1 billion and $1.1 billion.

ADB, said Edgar, took into account the improvement in Indonesia's macro-economic condition. For that reason, ADB suggested that the government invest to increase economic growth. “From the budget aspect, the government has an opportunity for higher investment to increase economic growth,” he said. ADB will also support the Indonesian government in the reform of finance.

The Government of Indonesia decided to build the Giant's Coal Electric Generator

ANTARA - Jakarta: The government decide to build immediately several the coal electric power generator with the strength 10,000MW in order to overcomes the occurrence of the electricity crisis in 2009 - 2010.

Minister Energi and Mineral Resources, Purnomo Yusgiantoro in the press conference after special kabinet meeting in the president's Jakarta office, on Tuesday explained the development of the electricity generator needed the fund around Rp70 trillion (US$7 billion).

"If to produce electricity around 10 thousand MW this needed the fund around US$7-8 billion or if being multiplied Rp9,200, around Rp70 trillion rupiah," he said.

However, according to Purnomo the number still the estimate breakingprep early and very possibly changed for example resulting from the problem of land clearing for example case.

According to him, the development of the crash program of 10 thousand MW this electric power will be built by PLN-State Owned electric company by means of choosing directly the prepared investor built this generator. "We had two choices, the tender was open and the direct election." If the contractor brought the fund, could was done that was named the direct election. The direct election, not the direct appointment. The direct election like beauty contest, he said.

Now for the direct appointment of the investor who did the project, continued Purnomo only could be done in areas that experienced the electricity crisis like in South Sulawesi.

"In Indonesia had several areas of the crisis that during now to speed up this filling indeed was in PP No 3/2005. That was published last year. That was enabled for the area of the crisis, that indeed needed the electricity generator", he said.

Was related to this, Purnomo also confirmed that PLN appointed directly the Bosowa group to build the generator of non-fuel electricity in South Sulawesi. "South Sulawesi including kriris. The electric generator has several now. Yesterday there had generator shut-down also, Because indeed the growth of his requirement was very high like in Java, around 13 percent", he said.

Appointing Bosowa, he continued came from the process of the PKUK proposal (the Holder of the Electricity efforts Power) that knew precisely the condition for electricity of an area.

Purnomo explained to support the development of this the coal electric power generator, the government also prepared the development of the infrastructure of coal handling to increase the production around 87 million tonne per the year to 2009/2010.
At this time, he continued the government was also compiling the basic rule that enabled PLN to carry out the development of this generator.

"Also was planned by us to form the co-ordination team that they task was to monitor this electricity generator," he said.

Contact information:

BOSOWA GROUP
Address:
Jl. Urip Sumuhardjo No. 188
Ujung Pandang 90232 - South Sulawesi
INDONESIA
Tel: (62 411) 444444
Fax: (62 411) 447744

ESSAR POWER PLAN TO BUILD POWER PLANT IN INDONESIA

The Hindu -- June 1, 2006

New Delhi, May 31 (PTI): Essar Power, which had recently bid for setting up a coal-fired power plant in Indonesia, on Tuesday said it is eyeing more coal and gas-based plants in the south east Asian country.

"We are looking at more coal and gas-based power plants in Indonesia," Essar Power Managing Director A K Shrivastava said at a conference here.



The company is planning to bid for three projects in that country. While two projects are coal-based with a capacity of 1,000 MW each, the third one is a gas-fired station with a capacity of 500 MW.

Earlier this month, the Ruias-controlled company had emerged as among the two shortlisted firms for a 600 MW power plant in Java, Indonesia. Besides Essar, an international consortium led by Japan's Marubeni is also in the fray.

The tariff-based bids were invited by Indonesian state-owned electricity firm PT Perusahaan Listrik Negara early this year.

Industry sources said Essar is unlikely to get the project as its bid has been slightly higher than that of Marubeni. However, the Indonesian firm has not announced of any decision on the project so far.

Essar Power runs a 515 MW plant at Hazira in Gujarat. The company is in the process of expanding this plant to 1,500 MW over the next three years. The company aims at becoming an integrated power utility in the country with interests in generation, transmission as well as power trading.