• Binladin Group invest $.4.3 bn in Papua • Garment makers cash in on big foreign orders • Emaar to invest Dh 8 bn in Foreword

would like to welcome you to this inaugural edition of Indonesia Newsletter, Ia publication designed by the Indonesian Embassy in Abu Dhabi to highlight Indonesia’s trade, tourism and investment (TTI) opportunities. H.E. M. WAHID SUPRIYADI Ambassador Extraordinary and As the biggest country in South East Asia, Indonesia Plenipotentiary has a considerable domestic market, some 237 million people, JOKO SANTOSO including a rapidly growing middle class, and an abundance of Minister Counsellor/ Political Affairs natural resources.

NICO ADAM First Secretary/Economic Affairs There are significant opportunities for direct foreign investment in

M. ARIF HIDAYATULLAH Indonesia. The Indonesian Government is committed to measures Second Secretary/Economic aimed at boosting the business environment, promoting legal Affairs certainty and improving the country’s infrastructure. ABDI SATYA UTAMA Second Secretary/Information, Social and Cultural Affairs Bilateral trade and tourism between Middle Eastern countries Protocol & Consular Affairs especially the United Arab Emirates and Indonesia has been ASDEDI registering an impressive growth rate in recent years. Exports of Administration Officer Indonesian products to the Middle East region have gained renewed SUKARTONO DALIL buoyancy. Tourism also plays an important role in opening up new Administration Officer vistas of mutual cooperation between people.

THE EMBASSY OF THE REPUBLIC OF INDONESIA Our publication aims to act as a catalyst in further strengthening Zone 2, Sector 79, Villa No. 474 these relations. As always, I welcome your suggestions and ideas to Sultan bin Zayed Street (Street- help us in our endeavors. 32), Al Bateen Area P.O. BOX 7256 Abu Dhabi, United Arab Emirates M. Wahid Supriyadi Phone : +971 2 445 4448 Fax : +971 2 445 5453 Ambassador E-Mail : [email protected] The Republic of Indonesia [email protected] Website: www.indoemb.org/kbri/

Content : •Saudi BinLadin Group plans to invest at least $4.3 billion in agriculture sector •Emaar to invest Dh 8 bn in Indonesia •“GOD TEARS” from South Sea •E. Java jewelry center to promote global trade •Garment makers cash in on big foreign orders Sunset at Senggigi Beach - , (Nico) •The 23rd Trade Expo Indonesia 2 INVESTMENT

Government officials said in July, when another group of Saudi investors announced interest in developing a tract of land in Merauke, that Indonesia will ensure it has enough rice for its domestic market first if it is to allow foreign companies and other countries to use its land to export for their own consumption needs.

He said the close working relationship between Saudi Arabia and Indonesia, as well as Indonesia’s good agricultural prospects, made the company place the country high on its list of places to invest.

The Binladin Group follows other potential investors looking to invest in Merauke, such as Medco Group, an Indonesian oil and gas company interested in building a pulp-and-paper factory, and Green of padi field in Mount Ciremai West Java (Nico) International Paper, a US-based company also interested in Saudi BinLadin Group to invest establishing a paper mill. $4.3 billion in agriculture sector (Kompas/JP)

audi-based investment Also speaking to reporters, firm BinLadin Group is Binladin Group board member Smulling at investing in and executive managing agricultural projects here worth editor Abu Bakar S. Al-Hamed an estimated US$4.3 billion confirmed that the firm would developing at least 500,000 focus on rice and other hectares of Indonesian land for commodities and that more rice production, which will be studies were required prior to spent within the course of 15 making a final decision about years, says an official. the investment. “We have been looking at other locations Indonesia’s special envoy to that might be suitable but the Middle East, Alwi Shihab, Indonesia is first on our list,” he told reporters after the meeting said. that the Binladin Group has been tasked by the Saudi Shihab said the company plans government to look into to grow Basmati rice, a strain investing in agricultural projects of rice that’s not widely following sharp increases in consumed by Indonesians, and food prices as a result of high that the rice will be mostly crude oil prices. exported back to Saudi Arabia. Asmat sculpture from Papua (Nico) 3 INVESTMENT

Senggigi beach hotel in Lombok (Nico) Emaar to invest Dh 8 bn in Indonesia

ubai-based Emaar and ensuring the on-schedule According to Serinata, the NTB Properties plans to invest delivery of the project. The Dh administration has committed Dmore than Dh8 billion 2.2 billion Lombok project will to Emaar’s requests for a clean (Rp20 trillion) in total over a 15- be an environmentally friendly water facility, which could year period in the tourism project, which will energize the supply 30,000 cubic meters per sector of an Indonesian tourism sector. day and a three-lane road to province. “Emaar will develop the city’s international airport. a tourism project on a 1,250- Master planning for the Emaar’s expansion to Indonesia hectare plot of land previously development has already is in line with its Vision 2010 to owned by Lombok Tourism begun. Besides, the project will become one of the most Development Corporation in have more than 17 kilometers valuable companies in the Central Lombok. It has also of natural waterfront, which world through geographic pledged to invest more than will support a marina, apart expansion and business Rp20trn in total over 15 years from luxury residences and segmentation. The company period in the tourism sector in resorts by five-star hospitality has a growing presence in Asia. West Nusa Tenggara (NTB) chains. (JP/ province,” NTB Governor Lalu Antara/ Serinata was quoted as saying “With our development plans Arabian by Antara News Agency. for Indonesia, Emaar is Business. consolidating its geographic com) In May, the company had expansion in Asia,” Chairman opened an office in Jakarta Mohamed Ali Alabbar had said which was leading its efforts at in a statement. identifying new growth opportunities in the country 4 TRADE

in 1934 is the largest pearl in the “GOD TEARS” from South Sea world. In 1936 Wilbur Dowell Cobb was given this pearl as a gift by a chieftain of Palawan for having saved the life of his son

Pearl of Asia This pearl was found in 17th century India. After the siege of Delhi it became the property of the King of Persia (present-day Iran), who in turn gave it to Chinese Emperor Qianlong.

The Imperial Hong Kong Pearl The Imperial Hong Kong pearl’s was formed in Pinctada Maxima. The Pearl origins are unclear it is believed to have once belonged to the Royalty of China and purchased by an Imperial of Hong Kong in the 1940s. Beautiful golden pearl from Lombok (Nico) Hope Pearl pearls, the white, pink and The Enchanting Pearls The Hope Pearl is a white drop- golden South Sea pearls are shaped freshwater blister pearl outh Sea Pearls refers to most valuable. The creamy of 1,800 grains (450 carats or 4 pearls from Pinctada type is valued at a lower price. oz). One of the largest maxima – a large oyster For their overtone, a silver-pink S saltwater pearls in existence , also called the silver-lip or overtone can be more valued the Hope Pearl was first yellow-lip (gold-lip) oyster than an overtone of bluish-gray acquired by Henry Philip Hope depending on the color of its or green. in the 19th century. It is on shell lip. They are extensively display at the British Museum of cultured in areas of the Indian Central Indonesia’s West Nusa Natural History. (Amerop) and Pacific Oceans, including Tenggara Barat region contains Indonesia. The color of south the rugged island of Lombok, sea pearls is white to golden. situated just east of . Their sizes are normally large Lombok is known for its golden than 9mm, sometimes reaching ‘South-Seas’ cultured pearls. 19mm. South Sea Pearl is very Lombok Pearl farms are precious. Its beauty and located on the south-western gorgeous luster honor its coast of the island, west of the reputation as “the queen of towns of Sekotong Timur, pearls”. Sekotong Tengah, and Lembar. The Lombok pearl farms are The color of South Sea pearls located within the chain of 10 varies depending on which islands (Gili) along the northern oyster the pearl comes from. side of the Sekotong peninsula, The oyster in Northern Australia between Sekotong Timur and is silver-lip oyster which tends to Bangko Bangko on the western produce white south sea pearls tip. with silver overtone. The gold- lip oyster which is commonly Famous pearls in the world found in the sea area of south- The Pearl of Lao-tze east Asia produces yellow or The Pearl of Lao-tze found by creamy South Sea Pearl. an anonymous Muslim Filipino Among those colorful south sea diver off the island of Palawan 5 TRADE

E. Java jewelry center to promote global trade

Dubai as the Main Market in the Middle East

ast Java is the center of East Java will benefit from this gold jewelry production in robust industry. Through jewelry, EIndonesia, producing up the industry can also promote to 90 percent of the country’s our culture to global buyers. For gold jewelry exports. instance, through designs and motifs typical of East Java. The province exports jewelry to Hong Kong, Malaysia, the U.S. and the Middle East through Dubai. In addition to 46 big companies operating in its jewelry industry, East Java is also home to thousands of smaller jewelry businesses. Beautiful gem stone and gold design from Indonesia (Nico) Garment makers cash in on big foreign orders

ndonesia’s garment industry China’s market,” she said. The orders were placed by has been reaping profits this Indonesia’s garment prices companies including Iyear filling out orders worth were even more competitive Abercrombie & Fitch, Dewhirst, US$230 million placed by 17 than those of Vietnam, the HanesBrands, J.Crew, branded garment producers Philippines, China and JCPenney, GAP, Jones Apparel, from Germany, the United Cambodia. Li & Fung, Linmark, Liz States, South Korea and Claiborne, Nike, PIERS, Ralph Taiwan. Lauren, Target, Vanity Fair and Walmart. The orders, which amount to a three-year high for the industry, Executive director of national were made out to 30 local textile research institute garment manufacturers, said Indotextiles Redma Gita Henrietta Lake, the senior Wirawasta said GAP had consultant of U.S. agency for placed an order for 12 million international development to 14 million items worth $100 project Senada, on Thursday. million and Walmart had ordered 11 million to 13 million The global producers had been items valued at $80 million. SOT attracted by the competitive and Marks & Spencer submitted prices and high quality orders for 8 million items, worth products offered by the $60 million. industry’s textile and garment manufacturers. “The quality of Orders from other global Indonesian garment products garment manufacturers like are better than other countries, Target, Nike, Adidas, Levi’s, including Bangladesh. Arrow, Van Houesen, only Indonesian products are likely reach less than $50 million. to be ready to take over Songket, weaving textile from South However, their orders grow by Sumatra (Nico) 6 EXHIBITION

an average of 10 percent annually. Exhibition and Promotion Event The country is the global garment market’s 10th biggest provider and the U.S. market’s third biggest, citing a recent study. The country’s garment exports reached $2.1 billion in The 23rd Trade Expo Indonesia the first semester of this year, up he 23rd Trade Expo Indonesia 2008, 6 percent from last year. pavilion are also displayed specific products is set to open on 21-25 October 2008. that have ISO, Eco label and CSR. They Demand for local garment TLike in the previous shows, Trade boast a synergy of cultural heritage, products had increased by Expo Indonesia 2008 will showcase all creative innovations and technology to form between 12 and 14 percent Indonesian export products ranging from an exceptional competitive advantage that is compared to last year. industrial, mining, agricultural to Craft distinctively Indonesia. sectors. Last year, the Ministry of Industry Total Attendance The last year show successfully attracted 20.000 professionals, overseas, CEO’s disbursed Rp 255 billion more than 7.333 buyers from 109 Indonesia business executives, (US$27.87 million) in interest rate countries, and generated total trade representative buyers of domestic and subsidies and soft loans to 92 transactions valued at US$ 208.26 million. foreign companies, government official and textile and garment The fact that thousands of buyers from the publics. many countries come to visit Resources manufacturers for purchasing Indonesia every year demonstrates a high Date & Venue new machinery. (jp) commitment from our trading partners October 21 - 25, 2008 around the world Indonesia is one of the Jakarta International Expo, Kemayoran potential and reliable suppliers of qualified Jakarta - Indonesia and competitive consumer products. Visiting Hours The Indonesian Embassy in cooperation Tuesday - Friday, October 21 - 25, 2008 with the Indonesian Consulate General in 10:00 am - 04:00 pm for Business Visitors Dubai and ITPC will organize business trip 04:00 pm - 08:00 pm for Public Visitors and a road show to some regions. (see attachments) Saturday, October 25, 2008 10:00 am - 07:00 pm for Public Visitors ICON PAVILION Trade Expo Indonesia 2008 The Venue Jakarta Fairground, Kemayoran, The Icon Pavilion of Trade Expo Indonesia Jakarta 2008 is the showcase of potential, unique The main open exhibition area is and best quality value - added products, surrounded by purposely built exhibition resources and services which meet with total space of 43.000 sq.m. international export standards. In this Indonesia in brief Area : 1.9 million sq km Population : 237 million Capital City : Jakarta (9.5 million) Official language : Bahasa Indonesia GDP Growth : 6,3% (2007) GDP : US$. 364 billion, US$.2077 (per capita, 2008) Inflation : 6% Exchange rate : USD$1.00 = Rp.9150 (IDR) Major Export Market : Japan (22.3%), USA (13.9%), China (9.1%), Singapore (8.9%)

Major Import Market : Japan (18%), China (16.1%), Singapore (12.8%)

Distance by air : Singapore (1h35m), Hongkong (4h40m), Tokyo (7h25m), Abu Dhabi (7h45m), Dubai (7h20m)

Traditional design of batik from Kalimantan (above) and Java (Nico) 7 TOURISM

Singapore Airlines, Indonesia cooperate to develop tourism

Under the MoU, the The promotional activities will two sides will jointly continue over a three-year carry out period, CNA said, adding that promotional each party will contribute up to activities in key 250,000 USD to fund these markets that activities. (jp) contribute to ingapore Airlines (SIA) and Indonesian tourism, namely the Indonesian Ministry of Europe, North Asia, The Middle Culture and Tourism have S East, Australia and the United signed a Memorandum of States, the Channel News Asia Understanding (MoU) to jointly (CNA) on August 25 cited a boost visitor arrivals to statement by SIA as saying. Indonesia. Karnival Announces Program – 9 Days of Fun on the Beach October 18-26, 2008 EMBASSY’S AGENDA raha Wicaksana, the coverage. The 2008 Karnival will head of Community also feature Balinese dance • 21-30 October 2008 GDevelopment for Kuta, competitions, environmental Trade Expo Indonesia, Bali’s most famous beach area, conservation exhibits, a fun Jakarta, followed by a has confirmed that the Kuta cycle show, seminars and a business road show to Bali, Yogyakarta, and Karnival returns for nine days mass street parade. Based on Banten. from October 18-26, 2008. past years, the Kuta Karnival is expected to draw more than • 10 November 2008 Initially organized as a response 90,000 people. (Budpar) Business Forum, Dubai. A to the Bali terrorist attack of number of Indonesian October 2002, the event has businessmen and local now become a regular fixture authorities will attend the forum. on Bali’s busy calendar of yearly events. This year’s event has • 12 November 2008 – 21 been given the motto “A February 2009 Celebration of Life” reflecting Indonesia to participate the nine days of traditional art in Dubai Global Village, performances, sunset dances Dubai. on the beach, sports activities, and an entire bazaar of • 21 November 2008 culinary kiosks located in tents Indonesian Performance up and down the beach. (Mainly designed for Indonesian Community) at Al Dhafra Tourist Following the first Kuta Karnival Village. held in 2003, this will represent the sixth year for the festivities • 23 November 2008 which now garners national Indonesian Cultural Night and international press at Abu Dhabi Cultural & Heritage Foundation. 8