Rendi Akhmad Witular, The Jakarta Post, Jakarta
The government will hold a tender next year to select contractors to construct the country's first nuclear power plant, a minister says.
"The nuclear reactor is part of our national energy policy. It will come onstream between 2015 and 2016 in Gunung Muria (in Central Java). We will launch the tender next year so as to be able to meet the deadline," Energy and Mineral Resources Minister Purnomo Yusgiantoro said Wednesday after meeting Vice President Jusuf Kalla.
He said that investors interested in bidding should have a proven track record in the construction of pressurized water reactors. Most such companies come from the United States, Japan, France and South Korea.
The reactor is expected to be able to produce a total of 4,000 megawatts (MW) by 2025. The National Nuclear Power Agency (Batan)'s Nuclear Energy Development Center will coordinate the ambitious project.
When asked whether the reactor would be producing electricity by 2011, as stated Tuesday by Research and Technology Minister Kusmayanto Kadiman, Purnomo said this would be impossible.
"It will require comprehensive studies by our nuclear scientists before the reactor is started. We don't think it will be onstream by 2011. It is just too short a time," said Purnomo, adding that he was not aware of any local investors interested in developing the project as hinted earlier by Kusmayanto.
During the first phase of construction, the Muria nuclear power plant will consist of six generators, with each capable of producing 1,000 MW of power.
The New Order regime under the leadership of former president Soeharto had originally mooted the possibility of constructing a nuclear power plant. However, the suggestion met strong resistance from the public and non-governmental organizations over concerns about public safety and environmental hazards.
Separately, the acting president director of state power utility PLN, Djuanda Nugraha Ibrahim, told reporters that PLN would definitely buy power from the nuclear reactor.
"PLN will need an additional 1,500 MW to 2,000 MW annually after 2016. If the nuclear power plant can supply 4,000 MW, we will definitely buy the power based on the prices set for independent power producers," said Djuanda.
The Jakarta Post, Jakarta
The director of the National Development Planning Board (Bappenas) has stressed the need for the leaders of government-funded projects to possess procurement and project leadership certificates.
In a speech to a provincial development planning forum in Banten on Wednesday, Bappenas director Paskah Suzetta stressed the importance of certification to prevent incompetent officials being assigned to lead government projects.
He was quoted by Antara as saying that the certification process, which commenced in 2005, was intended to ensure the competence of project leaders, which, in turn, would help accelerate project execution and improve compliance with the law.
Meanwhile, the Bappenas director of regional affairs, A. Rudiyanto, expressed concern about the poor performance of officials charged with heading up government projects. For example, he said, out of 100,000 regency and municipal officials from throughout the country, only 12 percent, or 12,000, had passed the recent procurement and project leadership examinations.
However, he added, those who failed could retake the examinations after receiving additional training.
"We need more than 7,040 project leaders for the country's 440 regencies and municipalities," he said.
He added that the test papers had been set by a Bappenas team in collaboration with a number of universities.
JAKARTA (Bloomberg): Indonesia's defense minister said the country plans to buy submarines, fighter jets and frigates in a shopping spree stretching from Russia to the Netherlands.
The world's largest archipelago plans to buy two new German submarines next year, doubling its fleet, and four Dutch frigates within three years, Defense Minister Juwono Sudarsono said in a Tuesday interview in Jakarta.
Indonesia, which owns four Russian-made Sukhoi fighters at $45 million each, will buy a further six over the next four years.
The government, which also owns six F-16 jets, is considering asking London-based BAE Systems Plc, Europe's largest weapons maker, to recondition Indonesia's eight Hawk fighters, Sudarsono said.
Indonesia, which emerged from military dictatorship in 1998, is updating its aging arsenal amid pressure from Asian neighbors and the U.S. to tackle piracy in the Malacca Strait and other coastal waters. Sudarsono, who called the purchases "the bareessential," is buying the weaponry even as he says his defense budget can't cover a soldier's minimum wage.
"It's a reflection of the international concern," said Bruce Gale, a Singapore-based independent political risk consultant who has studied Southeast Asia since 1988. "Indonesia has seen a lot of pressure from the U.S. to do something about the Malacca Strait. The navy does need to be boosted. Whether they can afford it is another question."
Indonesia's defense budget may swell to as much as US$3 billion next year from $2.6 billion this year, Sudarsono said. He's relying on economic growth over the next decade to boost government revenue and fund additional equipment purchases.
Indonesia expects the economy to expand 6.3 percent next year from 5.9 percent in 2006.
"You can't have a powerful military if you don't have a powerful economy," Sudarsono said. "It's nothing threatening, just enough to maintain what we call minimum essential force. We must provide some degree of deterrent."
Though the government is likely to choose German submarines, it's also considering South Korean and Russian boats, he said.
Indonesia, which bought its current pair in 1980, needs a fleet of eight to patrol its waters properly, he said.
Pirate attacks on ships rose to 61 in the first three months of the year from 56 a year earlier, according to the International Maritime Bureau. Indonesia accounted for almost one third of the attacks, the group said. Indonesia, made up of about18,000 islands, neighbors Malaysia, Singapore, the Philippines, Papua New Guinea, East Timor and Australia.
Indonesian is also in talks with China and South Korea about developing jointly a missile-carrying patrol boat, Sudarsono said. South Korea may supply radar and communications equipment, he said.
Spending on border defenses won't necessarily bolster the military's logistical capacity, which is used to respond to natural disasters. An earthquake on May 27, the worst tragedy since the 2004 tsunami, killed 5,782 people in the central Java region. Floods and landslides over the past week killed at least 180 people on the island of Sulawesi.
Sudarsono said he plans to spend 70 percent of future defense budgets on equipment to improve the military response to such catastrophes, adding planes, trucks and logistical supplies. He plans to add as many as seven C-130 Hercules transport planes,which can carry aid or troops. Indonesia currently has dozens of the aircraft but only eight operational.
"We anticipate in the next five to 10 years there will be more earthquakes, natural disasters and volcano eruptions, so our defense will be on focused on providing immediate and timely relief," Sudarsono said.
Jakarta (ANTARA News): The Indonesian government was sounding out the possibility of the liquid coal development with the Japanese Investor, J-Coal, the ESDM Nenny Sri Utami headword of the Body of the Department's Research And Development.
According to her, ended the liquid opening of the coal seminar in Jakarta, on Tuesday, the government will ask Earth Resource co-operated with J-Coal in the development of liquid coal that will be made the synthetic oil.
The "location that possibly was built was Berau, East Kalimantan, Bangko, South Sumatra or Muriah, South Kalimantan," he said.
Beforehand, Earth Resource will co-operate with the South African company, South Africa Synthetic Oil Liquid (SASOL) developed the liquefaction of the coal.
"However, this co-operation was postponed because SASOL was concentrating on developing liquid coal in Qatar, Nigeria, and China," said Nenny.
Nenny added, the liquefaction capacity of coal was with J-Coal sounded out 3 thousand tonne per the day and it was hoped could produce 12 thousand barrel synthetic oil per the day.
Planned, the factory could begin to be built in 2012 and 2015 has begun to be productive.
According to him, was based on the estimate, thought development investment of liquid coal was 2,4 billion US dollar for produced 55 thousand barrel synthetic oil per the day or 23-29 US dollar per barrel. The coal that was needed reached 12 thousand tonne per the day.
In the meantime, the Director General of the Mineral, coal, and the Department's Geothermal of ESDM Simon F Sembiring added, the government was still studying giving of the incentive for the development of liquid coal. His incentive could take the form of the reduction in royalties or the import duty tax for the owner of the mine and the liquid coal developer. Giving of the incentive was enabled in accordance with President Instruction No. 2 in 2006 about the provisions and the Utilisation of coal that was diluted as the Other Fuel dated January 25 2006.
This President Instruction mentioned Minister ESDM was assigned to prepare the incentive for the development of liquid coal and afterwards proposed to the Department of Finance. Simon also added, the coal reserve in Indonesia very abundant that is reached 58 billion tonne.
The Jakarta Post, Jakarta: President Susilo Bambang Yudhoyono and Singapore Prime Minister Lee Hsien Loong are slated to sign an agreement on economic cooperation that will include arrangements for the establishment of special economic zones in Indonesian territory.
The agreement, which will open up more opportunities for Singapore manufacturers to invest in Indonesia, will be signed by the two leaders on June 25 in Batam, presidential spokesman Dino Patti Djalal told reporters Monday.
"The agreement will include the establishment of special economic zones in Batam and Bintan to facilitate investment in these areas by more companies from Singapore," he said without going into details.
Vice President Jusuf Kalla has initiated several meetings with officials from Singapore to promote Batam and Bintan as Indonesia's main investment destinations for investors from the neighboring country.
Singapore is interested in Bintan and Batam because the islands are located less than an hour by ferry from Singapore, and have adequate business infrastructure, abundant water and labor supplies, and more relaxed customs management and supervision than other areas in Indonesia.
Due to a lack of land, Singapore is now trying to expand its manufacturing into neighboring countries. Bintan and Batam are likely to be its main focuses in this regard.
Under the new customs and excise bill currently being deliberated in the House of Representatives, companies operating in special economic zones will be exempted from paying excise and import duties.
JAKARTA (Agencies): Poland agreed Tuesday to sell 10 M-28 Skytruck light transport airplanes to Indonesia as part of a memorandum of understanding to increase defense cooperation.
The memorandum was signed by Defense Minister Juwono Sudarsono and his Polish counterpart Radoslaw Sikorski in Jakarta.
The purchase will use a US$75 million loan offered by Poland. The east European country initially offered a loan up to $260 million to buy the airplanes.
The Skytrucks -- produced by Polish state aircraft maker PZL Mielec -- will be operated by the National Police and the Navy for maritime patrol missions.
Indonesia purchased several Skytrucks for $135 million during the presidency of Megawati Soekarnoputri in 2003.
Juwono also said that state aircraft maker PT Dirgantara Indonesia (DI) would get a work contract of between 3 to 6 percent of the value of the purchase as part of efforts to empower state-owned defense industries.
Skytruck is a dual-engine light transport airplane with similar capabilities to PT DI's own CN-212 Aviocar.
JAKARTA (AP): Indonesia warned U.S. Secretary of Defense Donald Rumsfeld Tuesday that Washington risked triggering a backlash if it tried to force its approach to fighting terrorism on the rest of the world.
Rumsfeld, wrapping up a three nation tour of the region, held talks with President Susilo Bambang Yudhoyono, Defense Minister Juwono Sudarsono and other senior government officials.
Topics discussed included improved ties between the two nations' militaries, security in the Malacca Strait and ways to boost cooperation in the fight against terrorism.
Juwono said he told Rumsfeld that, "as the largest Muslim country, we are very aware of the perception ... that the United states is overbearing," and advised against trying to force itstough anti-terror approach on other nations.
"It's best that you leave the main responsibility of anti-terrorist measures to the local government in question and not to be overly insistent about immediate results arriving from your perception of terrorists," he said at a joint news conference.
