RI PRESIDENT PROMISES TO ELIMINATE INVESTMENT OBSTACLES

Shanghai, China (ANTARA News) - Visiting Indonesian President Susilo Bambang Yudhoyono said he would eliminate major obstacles in every sector in Indonesia to ensure the entry of foreign investment into the country.

"I reitrate that I will do my best to eliminate the major obstacles in every important sector," he said when opening the Indonesia-China Energy Forum (ICEF) II in Shanghai, China, on Saturday.

The president made the remarks in comment on the existing interest of Chinese investors not only in the energy but also in the mining and mineral sectors.

"We are endowed with huge mineral and other resources. I hope Chinese companies will invest in these sectors," the president said.

In the governmnt`s efforts to create legal certainty, Susilo said he had asked all governors in the country to conduct coordination, cooperation and better understanding not only in their own jurisdictions but also with the other provinces and correlate their moves with the national policies.

The head of state also explained that Indonesia had changed the way in which it was managing its oil and gas sector with the objective of having a modern and competitive oil and gas industry.

The president said, Indonesia was providing opportunities for investment in its oil and gas sector at the upstream and downstream levels by cutting the operational costs, so as to make it more atractive to domestic and foreign energy companies.

"We also need major investment to finance measures to improve and expand the infrastructure sector," he said.

In addition, Yudhoyono said Indonesia had also a new power policy by creating similarity for all investors through investment scheme for competitive power market, risk distribution inter investors, improvement of the regional government regulation, consumers and people protection.

"We also promote the new policy on coal to step up production so as to meet the increasing domestic demand and control its sustainability and improve its competitiveness in the international market," he said, adding that for Indonesia and China energy had become the key to success in development, to prosperity and stability.

"The prosperity of our people, the health of our economy and our political stability depend on the trust of sustainability and the aviability of energy resources," he said.

Meanwhile, Chinese Senior Deputy Prime Minister Huang Zu in his address said the strategic partnership between China and Indonesia which was agreed on last year should be stepped up in a bid to turn out good results for the two countries.

Regarding the cooperation in the field of energy, it was expected that ICEF II would bring about better results compared with ICEF I which was held in Bali in 2002.

"ICEF I which was conducted four years ago has turned out positive results and the present ICEF II is also expected to bring about better results in energy cooperation," Huang Zu said, hoping that through this forum not only Chinese investors would come to Indonesia but Indonesian investors would also come to China.

President Susilo Bambang Yudhoyono on the occasion was accompanied by Energy and Mineral Resources Minister Purnomo Yusgiantoro, State Enterprises Minister Sugiarto, Head of the Investment Coordinating Agency Muhammad Lutfi and Chairman of the Indonesian Chamber of Commerce and Industry (KADIN) MS Hidayat.

During his five-day stay in China, President Yudhoyono and his entourage would also visit the tourist city of Guilin and Nanning to attend the China-Asean Relations Commemorative Summit and meet Chinese Prime Minister Wen Jiabao.(*)

INDONESIA TO OFFER 111 PROJECTS WORTH US$16.74 BLN

Jakarta (ANTARA News) - The government will offer 111 projects worth US$16.74 bln at a two-day infrastructure summit that starts today (November 1, 2006), deputy coordinating minister for infrastructure Suyono Dikun said.

He said the main target is to offer 10 projects worth US$4.51 bln.

"For the 10 projects we will issue information memorandum to potential investors at the summit. Hopefully, right after the summit, we can start the bidding process," Dikun told XFN-Asia.

He said the government hopes interest on the remaining 101 projects valued at US$12.23 bln will follow suit.

The projects range from power plants, toll roads, water, gas pipelines and transportation infrastructure.

"The number (of total projects to be offered) is not fixed. It could change but that is the plan," said Dikun, who heads the summit's steering committee.

During the first infrastructure summit in January last year, the government offered 91 projects worth more than US$22.5 bln, but has so far secured deals for only nine. (*)

REGIONS OFFERS MAJOR INVESTMENT PROJECTS

The Jakarta Post, Jakarta

Domestic and foreign investors will have plenty of tempting opportunities laid out before them this week. On top of large, national-level projects that the central government plans to offer at the upcoming infrastructure conference, the regions are also lining up ventures for investors to put their money into.

More than 16 provinces will put projects worth some US$3.47 billion on the block at the upcoming Indonesian Regional Investment Forum (IRIF) on Nov. 2-3, says the event organizer.

Toni Gourlay of Sound Initiatives said the projects were in such sectors as tourism, infrastructure, agribusiness, power generation, food processing and manufacturing.

Among the participating provinces, Riau's are the most valuable, including a new highway worth $506 million, the $1.41 billion Dumai international airport, the Pasir Pangarayan-Dumai railroad worth $555 million and a $222-million power plant in Rokan Hulu regency.

Meanwhile, Jakarta province is offering a project worth $110 million for the expansion of the Tanah Abang market.

More than 800 foreign and domestic investors, and business leaders will attend the two-day forum, which will be opened by President Susilo Bambang Yudhoyono, Gourlay said.

"We have also specially invited one of the most influential thinkers on business strategy today, CK Prahalad, as the keynote speaker for this event to enlighten local bureaucrats on how to make their regions more investor-friendly," steering committee chairman Irman Gusman said.

"The problem is that these bureaucrats are not businessmen and in this forum we want to help them meet the needs of investors," Irman explained.

The idea for the forum was initiated by the Regional Representatives Council. (JP/09)

GOVT SUGGESTS EIGHT SOE TO GET ADDITIONAL CAPITAL

The government has suggested eight SOEs (state owned enterprises) to get additional capital in the form of government funds (PMN) in year 2007.

State Minister for SOE Sugiharto said here Thursday (12/10) the eight governments suggested SOEs are in urgent need of additional capital for their restructuring.

PT Pupuk Iskandar Muda will get US$22 million, PT Kertas Leces US$ 19.4 million, PT Kereta Api Indonesia US$ 11.1 million, Garuda Indonesia US$ 55.6 million, Perum Sarana Pengembangan Usaha US$ 5.6 million, Industri Kereta Api US$ 11.1 million, PT Boma Bisma Indra US$ 8.3 million, and PT PTPN XIV US$ 11.1 million.

House Commission VI suggested two more SOEs to get PMN. They are PT Aceh Asean Fertilizer and Permodalan Nasional Madani.

In view of the 2007 privatization program, the government is selling a maximum 30 per cent of its share to several SOEs. Of the total, 10-20% goes to the State Budget of Revenues and Expenditures and the remainder to SOE.

The move, Sugiharto said, is to see to it that the government remains being the majority share holder.

Commenting on the increased privatization target of US$ 366.7 million, the minister hoped that could come from 14 SOEs that will shortly be privatized. The total includes BNI Bank, Krakatau Steel, PT Jakarta Hotel Development, PT Kertas Padalarang, PT Intirub, PT Reksadana, and PT Kertas Basuki Rachmat.

Meanwhile, the divestment of Perusahaan Gas Negara Stata Gas Corporation) is to be conducted by way of secondary offering and is still being analyzed, Sugiharto said.

source: http://www.bipnewsroom.info

PRESIDENT DECLARES PALM SUGAR PROJECT NATIONAL PROGRAM

Jakarta (ANTARA News) - President Susilo Bambang Yudhoyono has declared the sugar palm development project part of the national food security program and the alternative energy program, like castor oil, sugarcane and cassava development projects.

Coordinating Minister for People`s Welfare Aburizal Bakrie told the press at the Presidential Office here Thursday that the President made the decision after receiving information about the prospect of this sugar palm development in the creation of job opportunities, alleviation of poverty, enhancement of food security and production of alternative energy resources.

North Sulawesi now has a factory that processes palm sugar into crystal sugar, according to Aburizal. This is the first sugar processing factory in the world, which is oriented to export, has given jobs to 2,222 farmers who serve as sap tappers.

The price of crystal sugar is Rp50,000/kg, and 30 percent of this palm sugar consists of molasses, a basic material for ethanol, which can be used as an alternative energy source.

In the implementation of the sugar development program, the government plans to build six processing factories in North Sumatra, West Java, East Java, Southeast Sulawesi, West Kalimantan and East Kalimantan at a total cost of Rp60 billion from the State Budget in 2007.

The operation of the six new processing factorie is expected to open job opportunities for some 300,000 workers, Aburizal said, and pointed out there are 800,000 of sugar palm plantations in Indonesia today. The optimal cultivation of those plantations will give jobs to some five million people, he added.

The President is scheduled to visit Tomohon, North Sulawesi province, in December 2006 to inaugurate the second crystal sugar factory in Indonesia. On the occasion, the President will hold a dialogue with sugar palm farmers in the province. (*)

Copyright © 2006 ANTARA

October 13, 2006

TOP TRADERS GET PRESIDENT'S SEAL OF APPROVAL

The Jakarta Post, October 13, 2006 - Jakarta

President Susilo Bambang Yudhoyono presented the Primaniyarta Awards to 23 companies assessed as the best performing exporters this year, and praised them as economic heroes during a ceremony Wednesday.

He said that total exports this year could reach US$100 billion as they amounted to $64.6 billion during the first eight months alone, up 17.1 percent from the same period last year.

Mineral exports posted the highest growth at 35.20 percent, followed by agricultural commodities at 21.7 percent and manufactured products at 14.6 percent.

"We should further develop our exports, notably the products of labor-intensive and resource-based businesses as they have a strong competitive edge on the international market," Yudhoyono said.

He noted that the export sector, besides private and government consumption, had been the main locomotive of economic growth over the past few years. However, investment needed to be increased if the export sector was once again to be the prime mover of the economy as it was before the 1997 economic crisis.

"The government has launched several reform packages to improve the investment climate as it is only through robust new investment that we will be able to create the jobs we need," he said at the opening of the five-day Trade Expo Indonesia at the Kemayoran Fairground.

The Primaniyarta Awards have been presented by the Trade Ministry annually since the 1990s as part of the effort to promote exports and motivate companies to become more active in marketing their products worldwide.

Best export performance is assessed based on increases in export sales, diversification of export markets and products, and the development of Indonesian brand names on the international market.

Resource-based exporters continued to make up the majority of the 23 Primaniyarta awardees this year, which included eight small and medium-scale businesses.

Among the winners were PT Musim Mas, a palm-oil company based in Medan, North Sumatra, which received an award for best performing exporter. This was the seventh time that Musim Mas has won the award.

PT Megasurya Mas from Sidoarjo, East Java, received the exceptional achievement award for promoting its own brands and expanding its exports of soap and margarine products to more than 60 countries in Asia and Africa. This year marked its second Primaniyarta award.

Other awardees were companies that utilized natural gas (such as PT Pupuk Kaltim), timber (such as PT Cahaya Sakti Furintraco) and agricultural products (fruits, spices and palm oil).

Only two of the awardees -- PT LG. Electronics Indonesia and textile firm PT Daya Manunggal -- were not entirely dependent on local natural resources.