Ratu Plaza given two months to repair basement

Mustaqim Adamrah, The Jakarta Post, Jakarta | Thu, 05/08/2008 11:03 AM

 

The city administration will give two months for PT Ratu Sayang International (RSI) to fix the basement of Ratu Plaza shopping center in Central Jakarta after a gas leak incident, which sent 27 employees of Carrefour hypermarket to hospital.

 

"This is their last chance. If they fail to meet standard requirements, the basement will be closed," Governor Fauzi Bowo said Wednesday.

 

He said after the repair the administration would verify the basement's safety before allowing it to reopen.

 

The management of Carrefour's France-based retailer decided to keep renting out the basement despite a number of incidents which have caused employees and customers health problems since 2002.

 

"We still want to continue renting out the basement because we want to keep the place. We will follow any process required by the city administration," director for corporate affairs Irawan Kadarman said.

 

He said Carrefour would open again after the building's management repaired the basement.

 

During a blackout, the building's ventilator was cut, leaking carbon-monoxide into the basement. Employees were taken to Pertamina Hospital, South Jakarta, suffering nausea, vomiting, headaches and respiratory problems.

 

The city's property management and control agency head Hari Sasongko said the city administration would take the incident to court.

 

"The city's manpower and transmigration agency, as well as the city health agency, have proposed a number of recommendations, including legal action," he said Tuesday after a meeting with RSI.

 

Officials from the city's fire agency, environmental management agency, city economic affairs bureau and the legal affairs bureau, as well as representatives of France-based retailer Carrefour, also attended the meeting.

 

Representatives of a city-appointed team in charge of reviewing the building's condition also attended the meeting.

 

RSI refused to comment on the administration's response to the incident. (ind)

Summarecon issues bonds for expansion

The Jakarta Post, Thu, 05/08/2008 11:03 AM 

 

Publicly listed property developer PT Summarecon Agung issued Wednesday its first Islamic bonds (sukuk), worth Rp 200 billion (US$21.69 million), and conventional bonds, worth Rp 100 billion, carrying returns of between 13.75 and 14 percent per annum.

 

The bonds, to be offered between June 10 and 12, would have a five-year maturity period and would be listed on the Indonesia Stock Exchange on June 18, President Director Johannes Mardjuki said Wednesday during a press conference.

 

"Around 70 percent of the proceeds from these bonds will be allocated for purchasing land in Kelapa Gading and its surrounding area in North Jakarta and 30 percent for working capital," he told reporters.

 

Corporate secretary Michael Yong said previously the company intended to issue up to Rp 500 billion in bonds.

 

"Since interest rates on state bonds have increased to 12.5 percent from less than 11 percent two months ago, we decided to reduce our bonds to Rp 300 billion," he said.

 

Summarecon has appointed PT Andalan Artha Advisindo Sekuritas and publicly listed PT Kresna Graha Sekurindo to underwrite the bonds.

 

The company's net profit in the first quarter decreased to Rp 36.76 billion from Rp 43.83 billion due to the increasing tax charge, Michael said.

 

In anticipation of increases in the price of construction materials, the company has signed agreement contracts with its suppliers to ensure fixed prices for six months to a year. -- JP/rff

Bumi Serpong Damai announces IPO

The Jakarta Post, Sat, 05/10/2008 10:34 AM

 

PT Bumi Serpong Damai (BSD), developer of the popular satellite city complex west of Jakarta, will sell shares in an IPO expected to generate Rp 872 billion (US$94.42 million) in capital.

 

Director Teky Mailoa said Friday 1.09 billion shares would be sold for Rp 388 to Rp 800 per share between May 28 and 30. BSD will officially be listed on the Indonesian Stock Exchange on June 5.

 

"About 30 percent of the capital raised will be allocated to developing infrastructure in the city, such as roads, water treatment facilities and electricity and phone networks," Teky said.

 

He said another 25 percent of the proceeds would be used to refinance the company's Rp 600 billion bonds, 20 percent for financing the expansion of property projects, 20 percent for buying land and the remaining 5 percent for capital.

 

The issuance of the new shares will be underwritten by PT Sinarmas Sekuritas, PT CLSA Indonesia and PT Nusadana Capital.

 

Teky said by the end of April BSD had recorded Rp 954 billion in revenue this year.

 

BSD City is located on 5,920 hectares of land about 20 kilometers west of Jakarta. The company plans to build 80 housing clusters, seven community centers and an integrated commercial area on the site.

 

Currently there are 4,100 commercial outlets and 20,600 homes with 100,000 residents in BSD.

 

The company is winding up the second phase of 2,000 hectares of land development begun in February last year, said president director Harry Budi Hartanto.

 

It expects to complete the third phase of 2,150 hectares of land development later this year. -- JP/Novia D. Rulistia

Govt speeds up $10b Java Sumatra bridge

Oyos Saroso H.N., The Jakarta Post, Jakarta | Fri, 05/09/2008 9:38 AM

 

The government is slated to begin construction next year of the country's longest and most expensive bridge, linking Sumatra and Java islands, a year ahead of schedule.

 

Lampung Governor Sjachroedin Z.P. said Thursday the government would start work on the 29 kilometer bridge across the Sunda strait early in a bid to boost economic activities in Sumatra.

 

The bridge, connecting Bakauheni in Lampung with Merak in Banten, will cost about US$10 billion over the next 15 years, Sjachroedin said.

 

"All the governors in Sumatra want the development to begin soon and they expect it won't burden the government financially," he said, adding the bridge was expected to be operational by 2025.

 

Public Works Minister Djoko Kirmanto said the construction costs would be shouldered mainly by private investors, with the central government financing only 5 percent of the project.

 

"We will attract investors to finance the bridge development by offering them incentives," he said. (rff)

Emaar Jakarta tower to be the tallest in SE Asia

The Jakarta Post, Jakarta | Tue, 05/06/2008 2:01 PM

 

Dubai-based real estate giant Emaar Properties plans to build a landmark tower in Jakarta, which would be the tallest skyscraper in Southeast Asia, a presidential envoy says.

 

Special envoy for the Middle East Alwi Shihab said Monday the Chairman of Emaar, Mohamed Ali Alabbar, had proposed the project to President Susilo Bambang Yudhoyono during an informal meeting on Saturday.

 

"At the moment, we're still looking for the right location in Jakarta for the site of the project... we are ready to build the tower, our homework is to find the right location, " Alwi told The Jakarta Post.

 

Emaar, the largest land and real estate developer in the Gulf, is famed for its ongoing construction of Burj Dubai in Dubai, which would be the highest skyscraper in the world. The 718 meter-tall building is scheduled to be fully constructed by the end of this year.

 

Alwi said the Jakarta project was part of the company's commitment to invest in Indonesia.

 

In March, Emaar signed a joint venture agreement with the state-owned Bali Tourism Development Corporation to build an integrated tourism project in southern Lombok, West Nusa Tenggara, with a total investment of US$600 million. During the initial stage, they would build four luxury hotels, including Ritz Carlton and Giorgio Armani hotels, along with related tourist facilities.

 

"Emaar has started building its offices in Lombok and is carrying out trainings in conjunction with the tourism ministry for locals to assist in its projects," Alwi said, adding that up until now, the Indonesian government had received investments worth almost $5 billion from the Middle East and that it was targeting to attract $10 billion by 2009.

 

He said among those committed to invest in the country was Ras Al-Khaimah of the United Arab Emirates, which would bring a total investment worth $1.5 billion to construct an integrated port at Tanjung Api-Api, and a railway line from Palembang to Tanjung Api-Api.

 

Another company, Dubai Drydock, is ready to invest up to US$1 billion for the construction of a shipyard and an industrial city in Batam.

 

The envoy said the company had opened its office in Indonesia and had paid for the project's land, while adding that conglomerate company Pacific Inter-Link planned to invest US$500 million in a palm oil refinery plant in Dumai, Riau.

 

Dubai-based Al Ghurair Group also showed its commitment to invest around $500 million in the renovation and improvement of old refinery plants.

 

Previously, Saudi Telecom Company's Axis invested US$1 billion in the telecommunication industry. Alwi said the investors hoped to fully realize their commitments soon.

 

"Some of them complained that bureaucracy in our country has been too slow in responding to their proposals. While it only takes a few months to manage permits in Malaysia, for example, it could take years in Indonesia," Alwi said.

 

This had caused many of them to invest in Malaysia and Singapore instead, he added. (dia)

Developers eye low-cost apartments, houses

The Jakarta Post, Jakarta | Mon, 05/05/2008 11:25 AM

The Indonesian real estate association (REI) is to construct 86 subsidized low-cost apartment towers, with 600 units per tower, and 120,000 low-cost houses this year for low-income households.

"We have already built around 40,000 apartments in 61 apartment towers throughout Jakarta. State-owned Bank Tabungan Negara (BTN) has financed 3,000 units," said Alwi Bagir Mulachela, REI general secretary, Saturday.

David Lelij, sales manager of PT Tiara Metropolitan Jaya, subsidiary of major property developer Agung Podomoro Group, said members of the association were committed to providing such facilities at fairly affordable rates.

"We want to provide low-income earners an affordable place to live in the heart of the city," he said at the Real Estate Indonesia Expo 2008 opening.

David said Agung Podomoro were constructing 6,000 units of subsidized low-cost apartments in Kalibata, South Jakarta.

"Demand for low-cost houses is increasing," he said. 

David welcomed high-income earners to invest in the low-cost apartments. 

"But buyers who earn more than Rp 4.5 million (US$488) per month will not be eligible for the government subsidy and they will have to pay the tax as well." 

Under the scheme, the government will subsidize buyers earning less than Rp 4.5 million per month by paying 3 to 9 percent of their interest during a period of up to eight years. The 10 percent tax on units worth a maximum of Rp 144 million ($15,616) will be lifted. 

For houses, the government will provide a subsidy of Rp 7.5 million, Rp 10 million and Rp 12.5 million, depending on buyers' income levels. 

The government is aiming to have 1,000 low-cost apartments built by 2011 throughout the country and at least 1.35 million low-cost houses during the 2004-2009 period to accommodate the needs of low-income earners. 

The government supports developers by simplifying permit requirements to develop low-cost houses and apartments. 

Besides Agung Podomoro Group, Gapura Prima Group, Artha Graha Group and Bakrieland Development are also taking part in the program. (rff)

RI to get $2b in loans from World Bank for development

The Jakarta Post, Sat, 05/03/2008 11:14 AM  

The World Bank will lend US$2 billion for the country's development programs this year, the National Development Planning Board (Bappenas) announced Thursday.

The government could receive even more loans than those previously promised, according to Bappenas director for international financing Dewo Broto Joko Putranto.

"The (additional) loans can be included as loans allocated for 2009," said Dewo, as quoted by Antara.

The board will wait until it learns the exact amount needed to plug this year's state budget deficit before determining how much to propose the World Bank allocate.

World Bank spokesman Randy Salim said the $2 billion in loans would be divided into program loans and project loans.

"About $1.2 billion of the loans will be spent on programs related to climate change, education and infrastructure policy development," Salim told The Jakarta Post.

"On top of this amount, there is another $400 million in programs related to poverty alleviation."

The remaining $400 million, he said, would go toward developing roads, dams and flood-control projects and improving tax administration.

"Indonesia and the World Bank are also negotiating $300-$400 million in additional loans for infrastructure development," Salim said.

This month the World Bank will release its "Infrastructure Development Policy Loan", in which some $200 million will be channeled to support infrastructure improvement in Indonesia.

In a related development, the director general for state debt management, Rahmat Waluyanto, said the government would get an additional $2.9 billion in program loans this year, as reported by Antara.

Of this amount, $1.1 billion would come from the Asian Development Bank and $500-$600 million from the Japan Bank for International Cooperation (JBIC).

Waluyanto said part of the JBIC loan would be spent on programs related to climate change.

"About $1.2 billion worth of the loans will be used to plug the state budget deficit this year," Waluyanto said. (JP/rff)

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Govt to issue new decree on energy savings

Adianto P. Simamora, The Jakarta Post, Jakarta | Sat, 05/03/2008 11:14 AM

 

While the existing decree on energy savings remains ineffective in easing soaring energy consumption at home, President Susilo Bambang Yudhoyono is slated later this week to issue another similar decree.

 

Vice President Jusuf Kalla told reporters Friday the decree would be stricter than its predecessor, forcing the public to limit energy use amid soaring fuel subsidies in the state budget.

 

"The regulation will, for example, task a special inspector to supervise energy saving programs in government offices. It may also demand shopping malls close an hour earlier."

 

"We will evaluate these efforts. We have not discussed raising fuel prices yet." said Kalla, adding that to some extend, the regulation would include efforts to help speed up the ongoing energy conversion program.

 

The government issued in July 2005 a presidential decree on fuel savings before raising fuel prices later in October that year.

 

After the decree was in place, government offices lowered their use of air conditioners and reduced unnecessary traveling.

 

However, the euphoria over the program only lasted for a couple of months when government offices started to turn air conditioners up to the maximum, and left lights on during daylight hours.

 

President Yudhoyono has refrained from increasing domestic fuel prices to match the international market due primarily to publicity concerns ahead of next year's presidential election.

 

Based on the oil price assumption in the revised 2008 State Budget, fuel subsidies have risen from Rp 42 trillion (US$4.56 billion) to Rp 126.82 trillion, or amounting to about 12 percent of the government's Rp 987.48 trillion total spending.

 

The new scheme is based on an estimate the Indonesian Crude Price (ICP) -- the country's benchmark oil price -- will stand at an average of US$95 a barrel for the budget year.

 

But with the ICP now hovering at more than $103 a barrel, the subsidies are likely to soar to more than Rp 140 trillion.

 

The government is exploring other options to help sustain the state budget while maintaining prices.

 

Kalla said the government had sought to garner more oil through production sharing contract (PSC) oil and gas companies.

 

"We have requested the PSCs raise oil production," he said.

 

Kalla on Tuesday gathered some 20 PSCs to his office to demand higher production.

 

However, a source attending the meeting told The Jakarta Post that despite numerous privileges enjoyed by the PSC companies, they requested more incentives and facilities.

 

"These incentives and facilities are requested in exchange for producing more oil. It sounds insensitive, really, at a time when the country is in dire need of oil," said the source.

 

Yudhoyono has received pressure from the business community to hike fuel prices to ensure fiscal sustainability.

 

Analysts fear that if fiscal sustainability is not ensured, overseas lending and foreign-direct investment would suffer.

 

Funds for infrastructure development, education and health are also likely to be strangled as subsidy spending continues to overwhelm the state budget.

Wasted opportunity to manage e-trash

Tifa Asrianti, The Jakarta Post , Jakarta | Sat, 05/03/2008 11:14 AM

 

What happens to used batteries after being dumped into a waste bin and forgotten about? With a metal jacket and a polyethylene gasket, you cannot expect a battery to just shrink into the soil and become fertilizer.

 

"With the absence of a proper waste treatment system in the country, there is only a fifty-fifty chance hazardous waste goes to proper processing plants rather than littering our rivers and soil," said Emma Rachmawaty, assistant deputy minister for hazardous waste management department at the Environment Ministry, during a discussion on electronic waste (e-waste) on Thursday.

 

Her calculation is based on a 2006 statistic which says only 50 to 60 percent of the 7 million tons of annual hazardous waste was being processed properly. The rest was disposed of at legal dumping sites.

 

There should be a mass movement in the country to collect the hazardous waste from residential areas, sending it to processing sites, Emma said.

 

"In other countries, consumers can return the used batteries and lamps to stores. I've met several producers here. Most of them are willing to open a counter to accept used electronic goods, such as batteries and lamps. They just don't want to put such services in place because no regulation requires them to do so," she said.

 

Furthermore, the absence of proper e-waste treatment has opened the opportunity for other countries to dump their waste in Indonesia, she said.

 

The Environment Ministry will soon issue a regulation on e-waste management to encourage more hazardous waste processing companies, Emma said.

 

"The regulation will also help ease the permit procedure for the establishing waste processing company, which is expected to encourage the number of such companies to grow," Emma said.

 

The regulation would require the producers of electronic stuffs to manage the waste produced from their products.

 

In Greater Jakarta, there is at least one company, PT Prasadha Pamunah Limbah Industri (PPLI), providing disposal services for hazardous waste and other kind of waste management processes.

 

The Bogor-based company, which has operated since 1994, is 95 percent owned by Modern Asia Environmental Holdings and 5 percent by the government through the ministry.

 

Selamet Daroyni from the Jakarta chapter of the Indonesian Environment Forum (Walhi) said both the government and the Jakarta administration should monitor waste processing closely so no one would break the regulation.

 

A few years ago, his organization found cases in Bekasi and North Jakarta, in which several individuals assured ISO holder companies to process the companies' waste at a cheaper price instead of sending the waste to PPLI, he said.

 

"The companies had to provide Rp 250 million (around US$27,000) to process one ton of hazardous waste in PPLI, while these individuals offered Rp 100 million. It turned out that they threw the waste into the river," he said.

 

Selamet said Walhi did not have data to say what the total number of hazardous waste in Jakarta was, but he believed e-waste was yet to be processed properly because waste control has been low.

 

"The low level of control has resulted in hazardous waste, produced by household and industry, entering the Bantar Gebang dumping site instead of PPLI," he said.

Indonesia Tower tries out Wimax technology

The Jakarta Post, Antara, Jakarta | Wed, 04/30/2008 6:27 PM

Information technology firm Indonesia Tower has tried out its Wimax technology, which is claimed to have better speed than 3G technology.

 

The test was held on Tuesday by conducting a videoconference among Information and Communications Minister Muhammad Nuh, Post and Telecommunication director general Basuki Yusuf Iskandar and commissioners of Indonesia Tower.

 

The trial ran smoothly with the allotted data transfer speed reaching 3 Mbps. Indonesia Tower's Wimax maximum data transfer speed is claimed to reach 24 Mbps.