Newsletter CONSULATE GENERAL OF THE REPUBLIC OF INDONESIA, , VOLUME 04 / APRIL 2012 MONTHLY

The 27th Trade Expo Indonesia 2012 October 17-21, 2012 International Expo (Jakarta Fairgounds), Kemayoran, Jakarta, Indonesia Visit : www.tradexpoindonesia.com The 27th Trade Expo Indonesia 2012 is set to open on 17 - 21 October 2012. Following its previous shows, Trade Expo Indonesia 2012 will showcase all Indonesian export products ranging from industrial, mining, agricultural to Craft sectors. Last year, Tradexpo Indonesia successfully attracted more than 8.300 buyers from over 100 countries, and generated in total trade transactions valued at US$ 225.9 milion on merchandise and 238.5 million on skilled labour. The fact that thousands of buyers from many countries come to visit Resources (Tradexpo) Indonesia every years demonstrates a high commitment of our trading partners around the world; and also a solid prove that Indonesia is one of the potensial and reliable suppliers of qualified and competitive consumer products. Therefore, you and your associates are cordially invited to pay a visit to The 27th Trade Expo Indonesia 2012, from 17 -21 October 2012 at Jakarta Fairground, Kemayoran, Indonesia. Products on Display : Automotive Components, Cocoa, Coffee, CPO, Electricity & Electronics, Footware, Furniture, Rubber & Rubber Products, Textile and Textile Products, Essential Oils, Handicrafts, Medical Herbs, Jewelry and Accessories, Leather and Leather Products, Processed Foods, Agricultural Products, Building Materials, Chemical, Food and Beverages, Household Goods, Glassware, Paper Products, Sports Equipments, Services. Organized by : Ministry of Trade, Republic of Indonesia, Main Building, , 14th Floor, Jl. MI Ridwan Rais No. 5, Jakarta 10110, Indonesia Tel (0062-21) 23528644 / 23528645 Fax : (62-21)23528654 E-mail : [email protected] / [email protected] / [email protected] Register Online for Trade Expo Indonesia 2012 : www.tradexpoindonesia.com/buyers-registration Download buyers invitation : www.tradexpoindonesia.com/docs/Mail_Shot_TEI2012.pdf INDONESIAN EXPORTS IN MARCH formation (9.9 percent), exports (7.8 percent), and imports (8.2 2012 : Indonesia`s exports in March percent). Compared with the fourth quarter of 2011, only reached US$17.27 billion, a 10.01 household consumption grew by 0.5 percent while other areas percent increase compared to dropped government spending by 45.1 percent, fixed gross capital US$15.69 billion in February, the investment formation by 4.8 percent, exports by 7.2 percent, and Central Statistics Agency (BPS) imports by 6.2 percent. Suryamin pointed out that Indonesia's stated. The March 2012 exports economic growth in the first quarter of 2012 was dominated by consisted of oil and gas exports growth in the provinces of Java and Sumatra. Provinces in Java worth US$3.5 billion and non-oil/non-gas exports valued at contributed 57.5 percent to the country's GDP growth, followed US$13.76 billion, BPS Chief Suryamin stated. The exports brought by provinces in Sumatra (23.6 percent), Kalimantan (9.8 percent), the total exports in the first quarter of 2012 to US$48.53 billion, up Sulawesi (4.5 percent), and Bali and Nusa Tenggara (2.4 percent). 6.93 percent from US$45.39 billion in the same period last year. "The smallest contribution comes from provinces in Maluku and Compared to March 2011, the non-oil/non-gas exports in March Papua, at only 2.2 percent. 2012 rose 11.55 percent from US$12.34 billion to US$13.76 billion and oil and gas exports increased 4.37 percent from US$3.36 RI TO REVISE NEGATIVE INVESTMENT LIST : The government billion to US$3.5 billion. The increase in oil and gas exports resulted expects to finish this year the revision of the long-discussed from a 6.32 percent increase in crude oil exports to US$1.29 negative-investment list in a bid to allow more foreign direct billion, and a 80.21 percent surge in oil product exports to US$525.9 investment (FDI) flowing into several key sectors. Indonesian million. The increase in non-oil/non-gas exports in March 2012 Coordinating Board chief Gita Wirjawan stated that the revision was led by vegetable oil which reached US$2.18 billion, up by would be prioritized to include telecommunication, pharmaceutical US$670.1 million from US$1.51 billion in February 2012. Meanwhile, and health care, and education sectors. The goal is to boost the decline in non-oil/non-gas exports was led by copper products Indonesia’s competitiveness and this can only happen if our human which fell by US$68.3 million from US$307.7 million to US$239.4 resources are more intertwined and there's technological transfer, million. Other commodities which also recorded export growth The government currently restricts foreign ownership in certain were mineral fuels, rubber and rubber products, machinery and sectors to some degree, including the pharmaceutical industry, electrically appliances, crust ore, and metal ash. Meanwhile, the making foreign investors reluctant to invest as they cannot have export of copper, non-knitted garments, wood, wood products majority control over their businesses. The revised list will also and footwear declined. The March 2012 non-oil/non-gas exports ensure local consumers to get the lowest prices possible, Gita mostly went to with US$2.048 billion, followed by added. US$1.43 billion and the US US$1.28 billion. The non-oil/non-gas exports to the three biggest destinations accounted for 34.63 7,000 MW CAPACITY HYDRO percent of the overall non-oil/non-gas exports. Meanwhile, POWER PLANTS UNTIL 2020 led Indonesia`s non-oil/non-gas exports to other ASEAN : The government plans to build member countries with US$919.5 million, followed by hydro power plants with a US$846.4 million and US$490.1 million. However, non-oil/ combined capacity of 7,000 non-gas exports to Japan in March 2012 fell US$48 million, followed megawatts in several parts of by US$29.8 million, Britain US$4.1 million, and the country until 2020, Public US$0.6 million. Works Minister Djoko Kirmanto stated. The hydro power plants will be built at several areas in RI’S ECONOMY GREW 6.3 PERCENT IN FIRST QUARTER : Sumatra, Java, Sulawesi and Papua. The construction of the hydro Indonesia's economy has grown 6.3 percent year-on-year (YOY) power plants was part of efforts to use new and renewable in the first quarter of this year, according to the National Statistics energy to generate electricity. The construction of the power plants Agency (BPS). Compared to the fourth quarter of 2011, in terms would involve the government, state-owned companies and private of GDP, it has grown 1.4 percent, BPS chief Suryamin stated companies. The government was also planning to build dams to adding that GDP growth based on current prices reached irrigate paddy fields, supply drinking water to households and Rp1,972.4 trillion, however, based on a constant price of 2,000, it industries in many areas in the country. The dams that would be was Rp632.8 trillion. Without oil and gas, the GDP in the first built until 2014 would be able to accommodate 1.5 billion cubic quarter of 2012 increased by 1.5 percent from the fourth quarter meters per year. To date, the country had a total of 284 dams of 2011. And compared to the corresponding period of the previous capable of accommodating 12.9 billion cubic meters per year and year (YOY), it grew 6.7 percent. Suryamin said the sectors that 1,109 reservoirs capable of accommodating 0.1 billion cubic meters drove the growth were agriculture, animal husbandry, forestry, per year. fishery, finance, real estate, corporate service, communication, and transportation, among others. The highest growth in the first REALIZED FOREIGN INVESTMENT IN INDONESIA IN THE FIRST quarter of 2012 was recorded in the agricultural, animal husbandry, QUARTER : Realized foreign investment in Indonesia rose by 30 forestry, and fisheries sectors, at 20.9 percent. Suryamin noted percent to Rp 51.5 trillion (US$5.7 billion) in the first quarter that the growth in the agricultural sector was driven by large compared to the same period in 2011, the highest ever recorded harvests, while the transportation sector was boosted by for any quarter in Indonesia’s history, according to the Investment increased international travel at the beginning of the year, and Coordinating Board (BKPM). Announcing the figure, BKPM Chairman communication sector benefitted from increasing sales of and Trade Minister Gita Wiryawan said realized FDI, which created communication equipment. The high growth in the transportation 250,711 new jobs, defied a common trend in which the first quarter sector was contributed by air transportation, while in the figure usually falls from the previous quarter. BKPM, which also communication sector it was the Internet, following a shift from oversees investment companies, is confident Indonesia will reach SMS use to Internet networking. Suryamin explained that the growth its total investment target of Rp 283.5 trillion in 2012, a 13 percent in the construction was also fast because the government was increase over 2011, according to Gita. BKPM records and encouraging capital expenditure. Transportation and administers investment outside the oil/gas and financial sectors. communication grew 10.3 percent, while trade, hotel, and Gita, attributed FDI growth in the first quarter to the surging number restaurants 8.5 percent and construction 7.3 percent. Suryamin of Japanese and South Korean companies. Singapore remained said other areas that contributed to the growth this quarter were the biggest source of FDI in the first quarter with $1.2 billion, household consumption (with a YOY growth of 4.9 percent), followed by Japan with $600 million and with $500 government spending (5.9 percent), fixed gross capital investment million. Indonesia Newsletter (April 2012) 2 INDONESIAN DEVELOPER Emirsyah Satar signed a contract with Airbus executive vice INVESTS US $100 M IN JAVA president of programmes Tom Williams for the purchase of 11 WIND FARM : Wind farm A330-300 planes. The 11 planes worth US$2.54 billion will be developer UPC Renewables delivered in stages until 2017. President Susilo Bambang Indonesia plans to invest up Yudhoyono said after a meeting with Cameron that the two leaders to $100 million for a wind farm discussed a number of issues including trade, investment, on the south Java coast to tap education, democracy, interfaith dialogue, and climate change. into Indonesia’s growing Britain is among the five biggest investors in Indonesia. We call on demand for cheaper energy. to cooperate with Indonesia in spurring growth and creating The privately held company signed an agreement with the Ministry investment opportunities," President Yudhoyono stated. Data from of Energy and Mineral Resources to build 33 wind turbines off the the Investment Coordinating Board (BKPM) shows that British coast of Samas in Yogyakarta, a special region on the southern investment inflows into Indonesia reached US$419 million last year, side of Java that faces the Indian Ocean. The total capacity of the compared with US$1.89 billion in 2010. However, trade between wind farm will be 50 megawatts. This will be a milestone for a the two countries grew by 10 percent to US$2.8 billion in 2011, wind farm on a commercial scale, said Kardaya Warnika, director from US$2.6 billion in 2010. According to Cameron, Britain has general of renewable energy at the ministry. UPC Renewables aimed to double its trade with Indonesia in three years` time and will partner with a local company, Binatek Reka Energi, which has intended to contribute to the development of micro, small, and been studying and collecting wind-pattern data on the south Java medium businesses in Indonesia. British companies are engaged coast for the past four years. The agreement for the power in energy, pharmaceutical, financial, transportation, communication, purchase has yet to be signed, Kardaya said. UPC Renewables and hotel and restaurant sectors, among other sectors, in has offered a purchasing period of 30 years at a price of Rp 1,200 Indonesia. (13 cents) per kilowatt hour for the first 20 years and Rp 700 per kWh beyond that. That compares to an average production cost TO SET UP A JOINT VENTURE WITH RI’S AUTOMOTIVE of Rp 1,100 per kWh last year and an average selling price of Rp COMPONENT MAKER : Italy's Pirelli stated that it had agreed to 729 per kWh at the state power company, PLN. Kardaya said UPC set up a joint venture with Indonesia's leading automotive Renewables would start erecting the wind turbines once the components maker PT Astra Otoparts TBK to build a motorcycle power purchase agreement had been signed, and planned to use tyre factory in Indonesia. The joint venture, which will give Pirelli a local materials as much as possible in the construction. It plans to foothold in the Asian area's biggest economy, will see Pirelli hold complete the project in 15 months. Steven Zwaan, director of UPC 60 percent of the capital while Astra will hold the remaining part. Renewables hoped that the process could be done swiftly so the The venture will invest $120 million between 2012 and 2014, Pirelli wind farm could start producing next year hoping that success and Astra said in a joint statement. When the factory is fully with this project will generate interest to build more facilities across operational it will account for about 25 percent of Pirelli's worldwide Indonesia. In PLN’s 2011-20 electricity supply plan, the utility motor production. forecast states that Indonesia will needs to provide an additional 55,346 megawatts of power capacity over the next decade, COAL EXPORTS FROM assuming yearly economic growth of 7 percent, at a total JAMBI :Jambi province`s investment estimated at $96.2 billion. The plan outlines an coal exports in the first two aggressive decline in using oil fuel for the country’s power, shifting months of 2012 jumped 64.25 to cheaper gas and coal. Renewable energy would comprise 18 percent to US$31.39 million percent of total power production by the end of this decade, from from US$19.11 million in the just 10 percent currently. Wind energy, however, has yet to be same period last year, the included in the plan. local statistics office (BPS) stated. According to BPS data, the province`s coal exports in February 2012 rose to US$22.30 million STATE FIRMS TO INVEST IN SOLAR CELLS : Three state firms from US$9.08 million a month earlier, the head of the BPS office in will cooperate in producing solar cells at a total cost of US$30 Jambi, Ahkmad Jaelani stated. Coal was the biggest foreign million. In the first phase, the solar cells which will be produced in exchange earner of the province`s mining exports. Foreign the first semester of 2012 may have a capacity of 30 megawatts, exchange earnings from farm products in February were recorded the deputy for infrastructures and logistics to the state enterprises at US$3.16 million, down 4 percent from one month earlier. The minister, Sumaryanto Widayatin stated. The three state firms are export of industrial products in February 2012 rose 5.69 percent electricity company PT PLN, construction company PT Wijaya Karya to US$76.17 million from January 2012, with plywood and other Tbk, and highway operator PT Jasa Marga Tbk. Sumaryanto said processed woods recording an increase of 29.94 percent. Overall, that the cooperation is part of synergy to deal with rising demand Jambi`s exports in February fell compared to the same period last for electrical power. In the first phase, Jasa Marga will serve as year. off taker (direct user) of the solar cell production. In addition, the solar cells will also help PLN meet electrical power needs in remote SEAWEED PROCESSING PLANT IN BONTANG : PT First Marine, areas, outlying islands and hinterlands. The study on the a seaweed powder company in Makassar, plans to set up a factory development of solar cells has reached the final stage with the in Bontang, East Kalimantan, following its success in testing three state firms will soon set up a kind of subsidiary to carry out seaweed culture in Gusing, Bontang city waters. As an initial step the project. Indonesia has large potentials to develop solar cells. the Bontang city administration has met three times with the Indonesia have quartz sand deposits of up to 75 billion tons as president director of PT First Marine Makassar, Masayuki Yamamoto, raw material to make solar cell crystal or silicon. who in more than a year has experimented seaweed culture and the result was good with its quality being the best in Indonesia, BRITISH GOVERNMENT TO INCREASE INVESTMENT IN RI : The deputy mayor Isro Umarghani stated. Six locations had been British government seeks to increase its investment in, and trade identified to be used for developing seaweed. The cooperation with, Indonesia following Prime Minister David Cameron`s visit to pattern is still being sought, based on mutual benefit. It could be Indonesia. Cameron visited Indonesia during April 11-12. His based on a nucleus-plasm system involving fishermen`s groups entourage included Trade Minister Lord Green, Minister of or company to buy wet seaweed and later sells in dry form. In the Universities and Sciences David Willetts, and representatives from talks with Yamamoto a drying engine had been introduced which 39 British companies. The delegation included businesspersons, could dry seaweed within a day. Dried seaweed after being cut During Cameron`s visit, Garuda Indonesia president director into chips sells at Rp45,000 per kilogram while dried seaweed so Indonesia Newsletter (April 2012) 3 far was sold at only Rp6,500 per kilo. Isro hoped seaweed could cooperation. Prime Minister John Key was in Indonesia on a two- become the people`s economic driver moreover the quality of day visit. Also discussed at the meeting were efforts to enhance seaweed of Bontang was the best in Indonesia. The Bontang city bilateral ties. A fter holding the meeting, the two leaders witnessed administration has been very serious and already prepared pre- the signing of a memorandum of understanding in the fields of feasibility study. Efforts are being made this year to increase manpower, environment, agriculture, and geothermal energy. seaweed production and six locations have been found to develop seaweed farming. NORTH SULAWESI’S FOREIGN TRADE SURPLUS IN FIRST TWO MONTHS : North Sulawesi province saw a surplus of US$243.9 RI’S PORT CORPORATION million in its foreign trade in the first two months of this year. TO ENHANCE PORT’S During the period the province`s exports reached US$254.2 million CAPACITY : Indonesia Port while its imports were only valued at US$10.3 million, Head of the Corporation II (IPC), the North Sulawesi Statistics Office Dantes Simbolon stated. Despite largest port operator in the surplus, the province`s balance of trade in the first two months Indonesia, has today of 2012 fell sharply by 59.7 percent compared to the same period announced that it is planning last year. The decline in the balance of trade was chiefly the to invest around $2.47 result of a sharp decline in exports. In the January-February 2011 billion in the development of period, the province`s exports reached US$749.5 million, while its Kalibaru Port, an extension to the existing Tanjung Priok Port in imports stood at US$254.2 million. North Jakarta, Indonesia. Upon completion, Kalibaru Port, or New Priok, will more than triple the annual capacity of Tanjung Priok ’S MILK PRODUCER TO BUILD A PROCESSING from 5 million TEU to 18 million TEU when fully completed in 2023. AND PACKAGING PLANT IN RI : Fonterra, New Zealand`s milk IPC confirmed earlier this month that it had received approval from producer, has stated it will build a processing and packaging plant Indonesia’s Presidential Regulation to begin works on the ambitious in Indonesia to meet increasing demand. Indonesia`s milk demand project. The first phase of the project will include the installation is predicted to grow around 50 percent in the next eight years and of $1.38 billion worth of container terminal infrastructure and hence they wish to increase their processing packaging capacity related equipment, while $730 million will be made available to in Indonesia to support their long-term business growth, the construct the port’s new petroleum product terminal, the port company`s CEO, Theo Spierrings, stated. Fonterra, the producer operator said in a statement. In addition, a further $305 million will of Anlene, Anmum and Anchor Boneeto, has so far processed be used to build toll roads, a power station and industrial area, and packaged the product in New Zealand or through a packaging with the remaining $50 million earmarked for other services, company in Indonesia or Asia before distributing it to the country. according to the Malaysian National News Agency. IPC also said The Fonterra products will continue to use raw materials from that further funding in the development of New Priok could come New Zealand while the new plant will support the secondary from outside investors and in the form of loans from national and process of production and help respond market needs quickly. international lenders. The President Director of PT Foterra Brands Indonesia, Yon Handoyo, said Fonterra right now is seeking a partner to set up INVESTMENT IN BATAM : The Batam authorities have received and run a processing and packaging factory in Indonesia. At investment applications worth US$9.850 million from six companies present they are still on a stage of discussing it with several since early this month. Batam as one of industrialized cities in candidates to find alternatives for a cooperation structure, location Indonesia still attracts investors, the director of one-stop service and hoped that the new plant will have been operational in 18 and public relations unit at the Batam Management Board (BP), months` time and meet the Fonterra quality standard. Spierrings Djoko Wiwoho stated. In March 2012, the Batam authorities said Fonterra`s investment plan in Indonesia is part of the approved expansion projects worth US$2 million. Since early this company`s global strategy to focus more on the ASEAN region. year, the agency received new investment applications worth Global milk demand will increase 100 billion liters in the next eight US$24.240 million and applications for expansion projects worth years and 60 percent of the growth demand will come from China, US$4.1 million. Among the countries investing in Batam in the first India and Indonesia. Investment in local packaging and processing quarter of this year were Singapore, Malaysia, Australia, Italy, capacity will help assure the fulfillment of the milk demand that India, the , Germany, South Korea, the , grows fast in the region, Spierrings. Every year Fonterra produces , and British Virgin Island. The investors were engaged two million tons of milk and its derivative products and 80 percent among others in shipbuilding and maintenance industry, oil and of the products have been processed and packaged in various gas mining business, distribution services, floating structure countries. Indonesia is Fonterra`s tenth biggest market in Asia industry, civil engineering service, container transportation service and the Middle East. Indonesia contributes the biggest namely and office building management. With the addition of foreign around 28 percent. investment, the value of investment in Batam from 1971 to March 2012 reached US$6,104.683,833.83 in 1,561 projects. RI TO BOOST DIVERSIFICATION OF RI TO COOPERATE WITH NEW ZEALAND IN DEVELOPING ITS PROCESSED FISH GEOTHERMAL ENERGY : Indonesia has agreed to cooperate with PRODUCTS : The Maritime New Zealand in developing its geothermal energy potential as an Affairs and Fisheries (KKP) alternative renewable energy source. New Zealand has adequate is now increasing its efforts technology to utilize geothermal energy in Indonesia, Energy and to boost the diversification of Mineral Resources Minister Jero Wacik stated. New Zealand are processed fish products. good at their technology, particularly geothermal technology. That The diversification was done through increasing the capacity of is what Indonesia want’s to benefit from. To date, there are 28 small-scale fish businesses and fish processing industries. The locations for potential geothermal sources agreed upon by the ministry had been carrying out various pro-people programs such Energy and Mineral Resources Ministry and the Forestry Ministry. as increasing the supply chain and the value chain management In a press statement, President Yudhoyono stated he discussed of processed fish production. Indra also quoted the minister`s the planned development of geothermal energy with New remarks who stated the need for integrating the networks among Zealand`s John Key at the meeting. Under the cooperation in the the related industries, like core industries, supporting industries geothermal energy, Indonesia intend to develop the energy in five and other related industries. The KKP would continue to encourage to ten years. Indonewsia is inviting joint investment and technical and develop fish processing industries to produce products loved Indonesia Newsletter ( April 2012) 4 by consumers. Therefore, diversification of all forms of resources expects to produce 345,000 tons of flour a year in Gresik. They in the fishery sector should continue to be maximally made. plan to have our own brand for the flour because this is a strategic industry. However, the company would sell to baking companies PT PUPUK INDONESIA at first. According to the Indonesian Wheat Flour Mills Association TO BUILD A (Aptindo), Indonesians consumed 3.46 million tons of flour from PETROCHEMICAL January to September 2011, up 5.8 percent over 3.26 million tons COMPLEX : in 2010 during the same period. In addition, as part of its expansion, Indonesian fertilizer firm the company aims to increase crude palm oil (CPO) production by PT Pupuk Indonesia 7,000 tons per day in 2012. Wilmar Indonesia also expects to plans to build a produce 30,000 tons of CPO per day, or 7.8 million tons, in 2012, petrochemical complex up from 23,000 tons a day in 2011, PT Wilmar Nabati Indonesia worth $5.2 billion in the executive director Taufik Tamin stated. The company has 300,000 country's Papua region. Investors from Japan, South Korea and hectares across the archipelago, including 140,000 hectares Germany have expressed interest to take part in a plant that will dedicated to palm oil, and currently has assets of $35 billion. have annual capacity of 2 million tonnes a year, stated the firm's Wilmar Indonesia is planning to acquire more land and in the next CEO Arifin Tasrif. They want to be the majority (owner) in a joint five years expects to produce 10 million tons of CPO. According venture company, Tasrif added, without giving details on the to Tumanggor, the production value of Wilmar Indonesia’s largest timeframe for the plant. Indonesia, Southeast Asia's largest subsidiaries — PT Wilmar Nabati Indonesia and PT Multimas Nabati economy, is seeing strong economic growth of over six percent Asahan — reached $7.09 billion in 2011, up from $5.5 billion in and the government is keen for investors to expand the 2010. They predicted 20 percent growth in production value petrochemical industry to make higher value products from the throughout this year. Wilmar Indonesia is part of Wilmar International country's oil and gas output. Papua, a remote and mountainous Ltd., Asia’s leading agribusiness group, which operates in more region in eastern Indonesia home to BP's 's Tangguh liquefied than 20 countries across four continents. Wilmar Indonesia natural gas plant, sees high costs for construction and businesses contributes 15 percent of the Group’s total production. because of the expense in transporting materials from the country's main industrial centres on Java island. Pupuk Indonesia, a holding EAST KALIMANTAN COAL firm of four state-controlled fertilizer firms, already has plants in PRODUCER TO INCREASE west and east Java, in Kalimantan on Borneo island and Aceh in PRODUCTION : East Kalimantan Sumatra island, with a total capacity of 12 million tonnes. The firm coal producer PT Indo expects sales in 2012 to reach 45 trillion rupiah ($4.90 billion), up Tambangraya Megah (ITM) stated from last year's 40 trillion rupiah. it wants to increase production 8 percent to 27 million tons this year, BALI IMPORTS DIFFERENT COMMODITIES : Bali imported up from 25 million tons last year. different kinds of commodities worth 11.60 million US dollars in At its annual shareholders meeting the firm announced it would January 2012, an increase of 19.01 pct than those in December spend US$208 million to develop infrastructure and technology 2011 worth only 9.75 million US dollars. In the same month the for its six mining subsidiaries and acquire local coal firms to year earlier, the imports declined 43.04 pct, as the January 2011 support its expansion. Total coal sales last year reached 24.7 imports were worth 20.37 million US dollars, head of the Bali million tons, of which 22.6 million tons went to China and several Central Board of Statistics (BPS) Gede Suarsa stated. In the other Asian countries and Italy and the remaining 2.1 million tons meantime the February 2012 imports were worth 15.1 million US were sold on the domestic market, ITM finance director Edward dollars, a 30.11 pct increase from those in January 2012 or up Manurung stated. The company, which is 65 percent controlled 77.22 pct from February 2012 with 8.5 million US dollars. The by Thailand’s Banpu Minerals Co. Ltd., booked US$546.13 million imports in the first two months of 2012 came from Thailand 21.76 in net profits last year, up 167 percent from $204.15 million in pct, followed by Singapore 17.86 pct, 11.44 pct, China 2010. Indo Tambang’s operations director Pongsak Thongampai 7.26 pct and the US 11.35 pct. Gede Suarsa said further that the was appointed to replace outgoing president Somyot Ruchirawat main import commodities included mechanical products 31.06 pct, at the meeting. The company will use internal reserves to finance jewelry 1.3 pct, power equipment 9.23 pct, leather goods 2.59 2012’s capital expenditures, which have been allocated for its pct, motor vehicles 2.59 pct, and others 3.13 pct. Gede Suarsa subsidiaries and the acquisition of local coal companies. PT also stated that Bali`s imports mostly comprised production Indominco Mandiri and PT Trubaindo Coal Mining are the company’s equipment with a much lower value compared to Bali`s exports subsidiaries with the largest capital expenditure allocations, at worth 44.06 million US dollars in the same month. In the meantime, $108 million and $80 million respectively. PT Bharinto Ekatama and the imports had been declining in value while on the other hand PT Kitadin in Tandung Mayang start production this year. ITM has the foreign exchange earnings from the exports of various predicted it would sell all of its expected output at $100 per ton in commodities continued to increase, giving a positive impact on the 2012, a slim increase over last year’s average sale price of $97.10 life of the people and local economic growth. Bali`s exports included per ton. Edward said the company would allocate 10 percent of products of small and household industries, fishery and marine its total production for the domestic market, up from an 8.5 percent products. allocation, or 2.1 million tons, in 2011. As of March 20, ITM had the 17th-largest market capitalization of companies traded on the WILMAR INDONESIA TO BUILD SEVERAL PLANTS : The largest Indonesian Stock Exchange. ITM is estimated to have 1.627 million palm oil producer in the nation, Wilmar Indonesia, will build several tons of coal resources and 417 million tons of coal reserves. new plants worth US$300 million in the next two years. Wilmar Indonesia will build oil refining plants and a flour mill through RI AND TO IMPROVE BILATERAL RELATIONS : subsidiaries PT Wilmar Nabati Indonesia in Gresik, East Java; Indonesia and Latvia have agreed to improve bilateral relations in Padang, West Sumatra; and Balikpapan, East Kalimantan; and PT the fields of economy, politics, and social culture, according to Multimas Nabati Asahan in Medan, North Sumatra. Palm oil and Foreign Affairs Minister Marty Natalegawa. The two countries flour are commodities that are consumed by a lot of people and have signed a memorandum of understanding (MoU) to improve the demand keeps increasing every year. Wilmar sees a lot of bilateral relations," he said at a joint press conference with his business opportunities, Wilmar Indonesia commissioner Master Latvian counterpart Edgars Rinkevics. Marty added that the MoU Parulian Tumanggor stated. The construction of a flour mill would would be the basis on which the two countries would make efforts be a first for the palm oil company. Starting next year, the firm to improve bilateral relations. The two countries had big economic Indonesia Newsletter (April 2012) 5 opportunities in their bilateral relations, which would turn 20 years ports, the airport of Bandung in West Java recorded highest growth in 2013. Besides, economic cooperation between the two countries at 22.74% to 33,368 passsengers, up from 27,187 during the first has a big opportunity to develop. The two countries` trade value three months last year. In the same period, the island of Bali saw rose by more than 300 percent in 2011, to US$57.86 million, from an increase of 11.35%. Top tourist markets to Indonesia are 12.12 million in 2010. Marty hoped that the trade value would Singapore, Malaysia, Australia and China, with the Chinese market continue to increase in the future. growing by 26.6%. On the other hand, in Q1 the number of tourists from Taiwan declined (by -7.09%) and from the (– TELKOM TO FORM 7.7%). While number of tourists from Japan, which has been JOINT VENTURE WITH sliding for the past years has seen positive growth of 3.94%. EBAY : Telekomunikasi Indonesia or Telkom is set FOREIGN TOURIST ARRIVAL IN MARCH 2012 : Foreign Tourist to form a joint venture Arrivals Surge by 10.12%. As many as 658,600 foreign tourists with eBay Inc. (EBAY) to visited Indonesia in March 2012, representing a 10.12 percent of tap into the emerging e- increase compared to the same period last year, the Central commerce business in Statistics Agency (BPS) stated. Compared to February 2012, Southeast Asia's biggest foreign tourist rate went up by 11.16 percent in March 2012, BPS economy. Telkom's chief head Suryamin said. Cumulatively, around 1.90 million foreign Rinaldi Firmansyah stated in a statement that both companies have tourists visited Indonesia from January 2012 to March 2012. This signed an agreement to form a joint venture named PT MetraPlasa. represents 11.01 percent of increase compared to the same period Firmansyah cited a survey by Frost & Sullivan that said Indonesia's in 2011. Starred-hotel room occupancy rate in 20 provinces was e-commerce transactions' value was at $1 billion at the end of 52.70 percent on average in March 2012, up by 0.75 points 2011. Research by MarkPlus showed the number of Internet users compared to the one recorded in March 2011. Compared to in the Southeast Asian country increased by 32% in 2011 to at February 2012, room occupancy rate went up by 1.92 points. least 55 million, "which shows huge potentials for e-commerce in Foreign tourists spent shorter time in Indonesia in March 2012 Indonesia," Firmansyah added. Telkom, 53.24% owned by the compared to the same period last year. On average, foreign tourists Indonesian government, posted a 20.8% increase in its revenue stayed for 2.01 days in Indonesia during March 2012, while last from data and Internet services in 2011. With its relatively young year, they spent 2.11 days of staying in the country. population, increasing wealth, and a technologically savvy middle class, Indonesia is attracting investment from Internet-related SAIL KOMODO 2013 : companies. Google Inc. (GOOG) late last month opened an office The Island of Flores, in Jakarta. and in particular the district of West INTERNATIONAL MARITIME EVENT SAIL TOMINI 2012 : Manggarai, - hopping International maritime event Sail Tomini 2014, to be held in Ampana, off point to the Komodo Tojo Una-Una District, Central Sulawesi Province, is expected to National Park, - gives boost the flow of investments into the province. "Information about priority to improving its the plans to organize Sail Tomini is expected to attract investors infrastructure in the for the development of infrastructure and public facilities, such as town of Labuan Bajo and surrounding areas in order to ensure a hotels and restaurants in the Tomini Bay area," Central Sulawesi`s proper reception and enjoyment for participants and tourists to Maritime and Fishery Office official Hasanuddin Atjo stated. Further, the prestigious Sail Komodo 2013. At the moment, repair work on the international event will need new infrastructure and facilities the roads in the town of Labuan Bajo and its surrounding areas to accommodate and serve thousands of foreign participants from are already underway, and drainage and access roads to the city some 10 countries at the Sail Tomini event. Therefore, the and tourist attractions improved, stated Head of Public Works of government will invite private investors for the development of the district, Oban Adu. In addition, a budget of Rp. 1 billion has infrastructure, hotels and restaurants in Central Sulawesi. The been set aside to widen and improve the road and drainage system regional administration is waiting for a presidential directive on the to Lake Sano Nggoang, where 4 km. of damaged roads have implementation of Sail Tomini 2014, to move ahead on the drafting already been repaired. Komodo island , the protected nature park of a working plan for the event. The Central Sulawesi administration located next to the island of Flores features the unique habitat of will also need to intensively coordinate with the Gorontalo and Komodo, the only prehistoric dragon alive, and wonderful pristine North Sulawesi Provinces, as well as the 15 districts surrounding seas surrounding the island. Sail Komodo 2013 is expected to Tomini Bay, for the implementation of Sail Tomini. Sail Tomini activities attract hundreds of yachts sailing across the Indonesian seas will include a yacht rally from Australia to Tomini Bay via Tolo Bay, from Australia and the Philippines to Singapore, as well as tourists a business forum, product and investment exhibitions, along with from 87 countries. Highlight of Sail Komodo 2013 which will take cultural and art festivals. The peak of the event will be centered at place from 6 – 9 September 2013 will be staged at three locations the Togean isles, a national marine tourist object in Tojo Una-Una so as to spread out visitors, giving them the opportunity to see a District that once was part of Poso District. Indonesia had earlier number of attractions. The three locations are at the Pede beach, sponsored Sail Indonesia events such as Sail Bunaken (in North the Kampung Ujung Square and at the Batu Cermin cave. West Sulawesi Province, 2009), Sail Banda (Maluku, 2010), and Sail Manggarai itself boasts no less than 55 attractions, including the Wakatobi-Belitung (Southeast Sulawesi and Bangka Belitung, 2011). Snake Palace, the Cunca Wulang and Cunca Rami waterfalls, the This year, Sail Morotai will be held in North Maluku Province in Sano Nggoang Lake, megalithic villages, the Pink Beach and more, September, while Sail Komodo is to take place in East Nusa giving justice to its slogan: Komodo and So Much More. Tenggara Province in 2013. 2013 CONTEST IN BALI : Bali Governor, Made INTERNATIONAL TOURIST ARRIVAL IN FIRST QUARTER OF Mangku Pastika, recently welcomed the decision by : In the latest development, the Central Bureau of Statistics Organization, expressing his support to hold announced that International tourist arrivals to Indonesia during Contest in Bali in September 2013. Governor Pastika said this the first quarter this year grew by 11.01% registering 1.9 million when he received a courtesy call by , visitors compared to 1.7 million in the same period last year. While from Venezuala, who was accompanied by Chairwoman of Miss nation-wide, the month of March delivered a 10.12% increase World Organization Julia Morely, Astrid Ellena, and compared to the same month last year. Among the main entry CEO of MNC (television) Group Hary Tanoesoedibjo. During one Indonesia Newsletter (April 2012) 6 entire month in September 2013, over 131 of the world’s most Bali will not only be preserved but will also grow and spread to beautiful girls are expected to contest for the coveted Miss World other parts of the world. For more Information and detailed Daily title, which event will be broadcast around the world. The decision Program click the official website of the event: http:// to hold next year’s Miss World Contest on the fables island of Bali www.baliartsfestival.com/ has been enthusiastically received by many countries that regularly send contestants to this popular international event. Besides FIRST CULINARY enjoying the attractions of Bali during this visit, the organizers RESEARCH CENTER IN also looked into sites and facilities to hold next year’s event. During BANDUNG : The Bandung the courtesy call, Governor Pastika bade a warm welcome to Tourism Institute (STPB) is set Miss World Ivian Sarcos and the Miss World Delegation and hoped to open the first Culinary that they will enjoy Bali’s attractive nature and culture during their Research Center in the stay on the island. Governor Pastika hopes that through this country to indentify and prestigious event the island of Bali will be even more well known compile the wealth of food around the globe. presentations across the Indonesian archipelago, then innovate to create Indonesia’s finest BALI ARTS FESTIVAL - authentic cuisine for the international world. Deputy Director of 9 JUNE - 7 JULY 2012 : STPB, Anang Sutono, explained, that for the first step, the The fabled island of Bali Research Center will release 25 sets of Indonesia’s best menus will this year again roll out to include appetizers, entrees, and desserts. The sets will be the the annual Bali Arts result of identification of various traditional cuisines in the country, Festival to be held from 9 that will be tastefully and elegantly presented to meet international June to 7 July 2012, at standards. The taste itself will not be altered, only food Denpasar, capital of Bali. presentations will be re-invented to meet global demand, added For one full month, the Anang. The Culinary Research Center aims to make Indonesian best of Bali’s dances, music, and artistic expressions will be on Cuisine an inseparable part of the top products to promote display as this tourist paradise showcases its best cultural Indonesia’s Cultural diversity in the International world, thereby presentations. There are daily performances of dance and music strengthening Indonesia’s culinary competitiveness in the alongside countless related cultural and commercial activities international scene” added Anang. Cooperating with the Ministry during which literally the whole of Bali comes to the city to present of Tourism and Creative Economy, the Research Center in the cool its offerings of dance, music and beauty. Trance dances, classical mountain city of Bandung, in West Java, may also recommend court dances, stars of Balinese cultural stage, odd village dances, menus at official banquets at the State Palace, presenting various food and offerings contests, modern innovations on classical traditional cuisines.Official state banquets should represent the dances, flower arrangements, fashion shows, films, and more character of Indonesia through menus of traditional cuisines, are on the month-long agenda. Cultural performances from other suggested Anang. Aside from the technical aspects, the research Indonesian provinces including Central Kalimantan, North Sumatra, center will also delve into the philosophical meanings behind every East Java, Riau, Jakarta, Solo and many others will also be menu to reveal their cultural and historical aspects. According to presented, bringing their own traditional as well as most Anang, the Culinary Research Center is expected to start operating contemporary choreographies. In Bali, for months now competitions in December 2012. With close cooperation between academic have been held in villages to select their best cultural groups to institutions, the government, culinary associations and businesses, vie for a slot in the Arts Festival to perform in front of large Anang is optimistic that Indonesian cuisine can go global and international crowds who have thronged to the island. For its eventually become one of the icons to represent Indonesia in the 34th Bali Arts festival, organizers have chosen as theme of the International world. Among the world’s top dishes, CNN viewers Festival : “Paraos-paros”, meaning : Dynamic Togetherness. The have last year chosen Indonesia’s Rendang, Nasi Goreng and event itself will be highlighted with fascinating features among Satay among their top favorites. which are dance dramas (Sendratari), Bali Modern theatre, Gong Kebyar maestro, Photography Workshops, culinary festivals, and musical performances. There will also be exciting competitions such as documentary movie competitions, handicraft competitions, literary writing, painting, photography competitions. Parades and processions will also be presented including the Parade of Flowers and coconut leaves arrangements, a culinary and fashion Parade, The 27th Trade Expo Indonesia 2012 Nglawang Parade, Dramatari Arja Parade, Gong Kebyar Parade, October 17-21, 2012 Semara pagulingan Parade, Joged Bumbung Parade, and many Jakarta International Expo others. Each year, at the Bali Arts Festival are featured classical (Jakarta Fairgounds), Kemayoran, Jakarta, Indonesia dances of the island, such as the legong, gambuh, kecak, barong, baris, mask dances and the like, on which contemporary dance Visit : www.tradexpoindonesia.com choreographies have been created and old village dances and activities revived. Over the years, the whole range of classical Balinese folk stories – such as the Ramayana, Mahabharata, Sutasoma, Panji - have thus been turned into "colossal Dance dramas” known as Sendratari. While major performances are held at the amphitheater which can hold up to 6,000 spectators in PASARWISATA 2012 a temple-like stage, others are held at locations across the city Tourism Indonesia Mart & Expo and surrounding areas. Since most of the art and cultural activities (TIME) 2012 in Bali are motivated by religious devotion, artists will attempt to create their best works. Through its 34 years history, the Bali Arts “Meet all of Indonesia Under One Roof” Festival has been a media to rediscover and preserve the unique October 9-11, 2012 and celebrated arts and culture of Bali, at the same time increase Lampung Province, Indonesia its people’s welfare. Through this special annual event, it is hoped Visit : http://tourismindonesiamartexpo.com rthat the true authentic wisdom and philosophy of the people of Indonesia Newsletter (April 2012) 7 INDONESIAN CONSULATE GENERAL, MUMBAI - EVENTS IN APRIL 2012 Consulate General of the Republic of Indonesia, Mumbai organized Interactive Dialogue with Indonesian Community residing under the jurisdiction of KJRI, Mumbai at Resort Silver Hil, Lonavala, Maharashtra on Friday, April 6, 2012

Consulate General of the Republic of Indonesia, Mumbai jointly with Indonesian Investment Coordinating Board (BKPM) in cooperation with Indian Merchants Chamber (IMC), Mumbai organized seminar “Investment Promotion Forum - Regional Potential Investment Opportunities in Indonesia" on April 26, 2012 at Hotel Intercontinental, Mumbai

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 E-mail : [email protected] Website : www.kjrimumbai.net