EMBASSY OF THE REPUBLIC OF INDONESIA IN …Publikasi] indonesia_news... · Electricity Company or Perusahan Listrik Negara (PLN) offers investors to build electric power plants in

Indonesia News EMBASSY OF THE REPUBLIC OF INDONESIA IN ANKARA, TURKEY

Volume XVII – November 2008

The Indonesia International Exhibition of Rubber & Tyre 2009

The Indonesia International Exhibition of Automotive

Electronics & Components 2009

The Indonesia International Exhibition of Automotive Equipment & Tool 2009

The Indonesia International Auto Parts, Accessories and Equip Exhibition & Conference 2009 (INAPA) INAPA is the only dedicated and specialized international trade exhibition for auto parts, accessories, equip, tuning cars and services in Indonesia covering Asia Pacific countries. The Highlights of INAPA 2009 are: Technical Seminars & International Conferences; Auto Clinic Workshop; International Pavilions; Open House Session with policy makers/regulation; Forum to be Highlight The Potential Investment in Automotive Original Equipment Manufacturer (OEM) & Aftermarket Industry; Global Business Matchmaking; The New Innovation Products Area. An annual gathering and market place for international manufacturers & suppliers to showcase their latest auto components/parts, equipment, tools, technology & method to targeted maintenance professional audiences from across Asia and other countries.

INAPA will be the right platform to launch new products and/or introduce advance technologies, equipments, and emerge trends to this huge and growing market in the Asia. It is an essential event for sourcing and procurement experts and professionals who want to create feasible business cases and expand their operation in Indonesia. Date : March 19 – 22, 2009 Open Hours : 10 am – 6 pm Venue : Jakarta International Expo (JIExpo) – Kemayoran, Indonesia

For further info please visit http://www.inapa-exhibition.net

INVESTMENT OPPORTUNITY Pembangkit Listrik Tenaga Uap / PLTU (Steam Power Plant) Investment

In the effort to meet the rising demand of electricity, the Indonesian State-owned Electricity Company or Perusahan Listrik Negara (PLN) offers investors to build electric power plants in Indonesia. Based on PLN’s General Electric Supply Plan, the offer from PLN to investors is categorized under the name of Independent Power Producer (IPP). IPP has been allocated as part of the second stage of 10.000 MW Fast Track Program which gives opportunity for potential developer to construct and operate the electricity power plant unit as well as to sell the electricity product to PLN.

Independent Power Producer (IPP) Description: IPP developer is a liability company which has the Power Purchase Agreement (PPA) from PLN after passing through the procurement process for construction, operation and maintenance and selling the electricity production from plant units to PLN. Scope and Responsibility: The scope and responsibility of IPP developer are to provide the financial project, to prepare the design in detail from the plant project that will be constructed, to carry out the “Engineering, Procurement and Construction” (EPC), to implement operational work and maintaining the plant unit. The interested developer must comply with the IPP procurement rules and completely understand the business scheme: (1) handling the license from Government (local and central) according to the prevailing laws; (2) The process, customs and manners of the procurement area for the project location; (3) Relationship with the fuel supplier, EPC contractor, operational contractor and maintenance and with the insurance; (4) Relationship with financial institution which will finance the project. IPP Procurement Process: Generally, the IPP procurement process is carried out through open bidding. There are two phases under this bidding: Prequalification and Auction Process (RFP - Request for Proposal) In the Prequalification phase, the appraisal will be done in 3 aspects: Track Record of the IPP development; Experience in building plant; Financial record. The last aspect should meet the following requirements: Constant Net Profit in the last 3 three years, Must have EBITDA (Earning Before Interest-Tax Depreciation-Amortization) in the end of the year, which is about 2 x 40% from the total project expense and could be shown in the form of bank account. Sales Agreement: The electricity power sales agreement between PLN and the IPP developer is purely Business to Business (B to B). Therefore, in the agreement there is no such guarantee from other parties such as Government Guarantee, Umbrella’s Notes, Comfort Letter, or any other kinds of.

Second Stage of 10.000 MW Power Plant Plan offered to IPP :

2010 2011 2012 2013 2014 Total PLTP = Pembangkit Listrik Tenaga Panas bumi (Geothermal Power Plant)

PLTU = Pembangkit Listrik Tenaga Uap (Steam Power Plant)

PLTP – 20 365 470 615 1470 PLTU 56 190 92 – 2000 2338 Total 56 210 457 470 2615 3808

IPP developers interested in this offer can send their profiles to: Mr. Ipung Purwomarwanto (IPP Marketing Manager – PLN)

Phone: +62 - 811177498 Email: [email protected]

Investment News

Indonesia offers tax incentives for oil/energy Indonesia's president has issued a decree giving income tax incentives for investment in oil refineries and geothermal projects. Indonesia, Asia's biggest importer of diesel and gasoline, is trying to push for more investment in oil refineries to cut imports of oil products. The decree offers tax allowances at 30 percent of capital investment for the first six years of the project. "(The decree) is aimed at increasing investment activities to boost economic growth," it said. The decree was signed by President Susilo Bambang Yudhoyono on Sept. 23 and came into effect immediately and will be evaluated in two years time, it said. "The tax allowances for oil refinery projects are aimed at also cutting oil product imports," said Muhammad Lutfi, the head of Indonesia's investment agency. Indonesian state oil and gas company PT Pertamina has nine refineries scattered around the archipelago with a combined capacity of around 1 million barrels per day (bpd). But it only supplies 70 percent of domestic oil product consumption and 30 percent comes from imports.

There have been several new oil refineries project registered at investment agency in the past 15 years, but none of them have started construction.

The government has been trying to develop a refinery in Selayar island, south of Sulawesi, with a capacity of 220,000 barrels per day. Construction of new refineries has become more pressing in the past few years, as growing domestic demand forces Pertamina to import more fuel, straining the budget and weighing on the Rupiah currency. The government has also given geothermal projects income tax incentive to increase power plant capacity.

Company Exposition

PT. Golden Stone Indonesia, Is the leader of Indonesian Natural Stone with a solid reputation by supplying fine, high quality in various types Pebble / Gravel, Teppei / Rankei, Hexagon, Sand, Relief, and Candi Stone. The company is already in the world wide market with client contacts around ASIA-Pacific and USA, having capacity and production's according to the buyer requirement. The company sources various Indonesian stone from many different islands all over Indonesia, such as Ambon island, Flores island and more other island.

Products: Building Stone

Tufa Stone

Parquentry

Sliced Pebble

Mini-Pebble

Pebble

Mosaic

Gravel

CONTACT THE COMPANY

PT. Golden Stone Indonesia Address: Jl. Raya Darmo Permai III, Plaza Segi Delapan, C-868, Surabaya, INDONESIA

Phone: (+62–31–7319898) Fax:(+ 62–31–7343859) Web: www.gosindo.com Email: [email protected] Factory: Jl. Purwosari Km. 10, Pasuruan – Malang, Jawa Timur, INDONESIA

More than 2 Billion Trees Earns Indonesia Certificate of Global Leadership At the time when COP-13 United Nations Framework Convention on Climate Change was held in 2007, Indonesia embarked a national movement of planting trees which has gained positive response from Indonesian people. From 79 saplings when the movement started, it has now reached 86,9 millions plus 14,1 millions initiated by the first lady of the country, Mdm. Ani Yudhoyono. For this accomplish-ment, appreciation of Certificate of Global Leadership from the United Nations through United Nations Environment Programme has been given to the Minister for Forestry and the first lady.

On 28 November 2008, the ministry will embark the same project by planting 100 millions saplings in conjunction with the commemoration of 100 years of national awakening. From 2003 till now the ministry along with 32 mass organisations have planted more than 2 billions trees as part of the global campaign to fight against climate change. The Billion Tree Planting Campaign, is a unique worldwide tree planting initiative, aimed at empowering citizens to corporations and people up to presidents to embrace the climate change challenge, has now set its sights on planting seven billion trees. UNEP reported that the Billion Tree Campaign has in just 18 months catalyzed the planting of two billion trees, double its original target.

Investment Opportunity A Preliminary Feasibility Study of Indonesian Steel Industry (Part III)

Financial Feasibility Estimation – Automotive Body Structure Investment Cost Estimation US$ 20.000.000.00

Production Capacity 200.000.00 ton

Price / Ton US$ 600.00

Price Escalation 3% / Year

Cost Escalation 2,50% / Year

Operational Cost US$ 60.000.000.00 / Year

Period 10 Year

IRR on Project : 41,98%

Discount Rate : 14%

NPV on Project : US$ 65,542,426.08

Payback Period : 4 years 1 month

(in US$)

DESCRIPTION YEAR 0–1 YEAR 0–2 2011 2012 2013 2014

INCOME 60,000,000 670,980,000 76,384,800 85,232,706

Price 600 618 637 656

Utilization 50% 55% 60% 65%

Production 100.000 110.000 120.000 130.000

EXPENDITURE

Operational Cost 60.000.000 61.500.000 63.037.500 64.613.438

NET CASH FLOW FROM OPERATION – 6. 480.000 13.347.300 20.619.269

DEPRECIATION 2.000.000 2.000.000 2.000.000 2.000.000

Outflow for Project Calculation

Investment 12.000.000 8.000.000

Income Tax – 1.344.000 3.404.190 5.585.781

TOTAL OUTFLOW 12.000.000 8.000.000 – 1.344.000 3.404.190 5.585.781

Surplus (Deficit) 12.000.000 8.000.000 – 5.136.000 9.943.110 15.033.488

Accumulation 12.000.000 20.000.000 20.000.000 14. 864.000 4.920.890 10.112.598

Surplus (deficit) (discounted) 12.000.000 8.000.000 – 3. 951.985 6.711.316 8.901.032

Accumulation 12.000.000 20.000.000 20.000.000 16.048.015 9.336.699 435.667

DESCRIPTION 2015 2016 2017 2018 2019 2020

INCOME 94.542.740 104.334.667 114.629.020 125.447.134 136.811.169 148.744.143

Price 675 696 716 738 760 783

Utilization 70% 75% 80% 85% 90% 95%

Production 140.000 150.000 160.000 170.000 180.000 190.000

EXPENDITURE

Operational Cost 66.228.773 67.884.493 69.581.605 71.321.145 73.104.174 74.931.778

NET CASH FLOW FROM OPERATION 28.313.967 36.450.174 45.047.415 54.125.989 63.706.995 73.812.365

DEPRECIATION 2.000.000 2.000.000 2.000.000 2.000.000 2.000.000 2.000.000

Outflow for Project Calculation

Investment

Income Tax 7.894.190 10.335.052 12.914.225 15.637.797 18.512.098 21.543.709

TOTAL OUTFLOW 7.894.190 10.335.052 12.914.225 15.637.797 18.512.098 21. 543.709

Surplus (Deficit) 20.419.777 26.115.122 32.133.191 38.488.192 45.194.896 52.268.655

Accumulation 30. 532.375 56.647.496 88.780. 876 127.268.879 172.463.776 224.732.431

Surplus (deficit) (discounted) 10.605.392 11. 978.698 12.841.622 13.492.384 13.897.790 14.099. 146

Accumulation 10.169.725 22.067.423 34.909.046 48.401.430 62.299.220 76.398.366

Company Exposition: Perusahaan Kayu Mas

KAYU MAS is one of the major teak manufacturing companies in Banyuwangi, East Java, Indonesia.The Company has more than 25 years of manufacturing and exporting teak wood to International market. Its product includes Teak Flooring, Teak Parquet, Teak Laminate Flooring, Teak Lamparquet, Teak Skirting, Teak Listoni, Teak Parquet Flooring, Merbau Wood Flooring, Coconut Wood Flooring, Teak Furnitures and Teak for Housing Components The Company’s Teak Laminate products have been certified by CATAS Italy. All of the Company’s products are made from high quality, come in varying sizes tailored to customer requirements. European Standard Quality spec:

1 S4S 10 X 50 300 - 350 mm

2 S4S 10 X 60 300 - 350 mm

3 S4S 12/14 X 70/75 400 - 600 mm

4 T & G (LISTONI) 15 X 90 600 - 1200 mm

5 LAMINATING (T & G) 15 X 90 400 Up Max 1800 mm

CONTACT THE COMPANY

PERUSAHAAN “KAYU MAS” Jln. Raden Wijaya No.73, Banyuwangi 68452, Jawa Timur, INDONESIA

Phone : (+62-333) 423515, 422484 Fax : (+62-333) 424924 Web: www.kayumas.com www.karyamas.com

Bunaken Island, sea garden paradise (part 2)

The wildly varied shapes and colours of the fringing coral off Bunaken Island have become an International snorkeling and diving attraction. North-easterly currents generally sweep through the park but abundant counter currents and gyros related to lunar cycles are believed to be a trap for free swimming larvae. This is particularly true on the south side of the crescent-shaped Bunaken Island, lying in the heart of the park.

A snorkeler or diver in the vicinity of Lekuan or Fukui may spot over 33 species of butterfly fish and numerous types of groupers, damsels, wrasses and gobies. The gobies, smallish fish with bulging eyes and modified fins that allow them to attach to hard surfaces, are the most diverse but least known group of fish in the park. Bunaken Island offers a plethora of wall experiences for visiting divers. The reasons are obvious immediately upon entry. You can't help but notice the high concentration of schooling fish from the drummers and fusliliers that greet you as you begin your descent, the blizzards of brightly-colored anthias you pass along the edge of the reef top, continuing to fall through the clouds of pyramid butterfly fish and banner fish underneath. The variety of reef fish is astounding: you could pick out over 20 species of butterflyfish alone if you so desired.

The start of the traditional dive offers small treasures as candy crabs frequent the beautiful soft corals in the area, often adorning themselves with a sprig of live soft coral they've affixed atop their head. The faerie crab, a fingernail-sized squat lobster that's pink and hairy can be found by a discerning eye peering among the outer folds of barrel sponges. But don't become engrossed with the macro life so much that you miss any of the larger residents: sharks that pass you by below your fins, napoleons wrasse or bumphead parrotfish above you, or turtles out in the blue off the wall.Toward the end of the site, the Lekuan point, the current predictably picks up just as you notice the schools of redtooth triggerfish around you.

Getting There Bunaken Island is easily reached from Manado by motorized outrigger boat start from Manado harbor, Molas, Kalasey and Tasik Ria beaches. The public boats from Manado to Bunaken are leaving daily around 2 p.m (depending on tide), except Sundays, from Pasar Jengki near Manado harbor. Back from Bunaken to Manado usually early in the morning, around 7-8 a.m

Where to Stay On the island you have the choice amongst a number of homestays, with rates starting at Rp. 50.000 per day (YTL 6) per person including full board. Some of the dive operations on Bunaken are offering more up-market accommodation, and even running water.

INDONESIA NEWS IS COMPILED, PRINTED AND PUBLISHED BY THE EMBASSY OF THE REPUBLIC OF INDONESIA IN ANKARA, TURKEY

Abdullah Cevdet Sokak No. 10 (P.O. Box 42) Cankaya 06680, Ankara, Turkey

Phone: (90-312) 4382190 Fax: (90-312) 4382193 www.indo-ank.org