Global recession overshadows property market

The Jakarta Post, Jakarta | Mon, 11/10/2008 11:13 AM 

 

Indonesia's property sector is already feeling the pinch from the global economic downturn as demand is slowing at a time when interest rate adjustments have become a necessity for developers to keep business going, a property consultant says.

 

PT Colliers International Indonesia said over the weekend in its latest survey that the slowdown had already been evident since the end of the third quarter, in particular in Jakarta and surrounding areas, hat it continues to be felt in the fourth quarter and most likely will continue to impact into next year.

 

Bank Indonesia's benchmark interest rate currently stands at 9.5 percent, with cumulative inflation already hitting double digits in the first ten months of the year.

 

Colliers' report comes just days after a similar survey by another property consultant, PT Procon Indah, which focused on the Greater Jakarta market and said that the industry is heading for a slowdown due to increases in interest rates and the effects of inflation on prices of materials and rental costs.

 

Colliers said the industrial sector in the Greater Jakarta area, for example, had already experienced lower transaction levels in the third quarter compared to the previous quarter as export-oriented companies cut back on their investment plans amid slowing demand.

 

Average rental rates in central business districts (CBD) rose in the same period slightly from Rp 87,268 per square meter per month to Rp 88,117 per square meter.

 

The total supply for CBD office stock is now reported to be 3.9 million square meters, up from 3.71 million square meters last quarter, while occupancy rates decreased slightly down to 88.76 percent from 89.62 percent previously.

 

Supply for strata title apartments grew by 3 percent in the second quarter and 0.91 percent in quarter three. On the demand side however, out of 77,277 apartment units under construction, only 65 percent were already taken up and net absorption for apartments in the third quarter reached 459 units, declining from 551 in quarter two.

 

"With the current total units being built equivalent to about half of the total existing units and anticipating additional supply from new projects over the next two years, the apartment market will be very tough in the future," the survey says.

 

The occupancy rate for retail space is expected to decline in the fourth quarter, with shopping centers adjusting their rental rates to meet market conditions.

 

Still, retail space supply is set to increase from 3.21 million square meters in 2007 to 3.31 million square meters.

 

Meanwhile, the hotel occupancy rate nation-wide increased by 0.82 percent from the second quarter, with the five-star category dominating the market at 47.5 percent.

 

The survey reports that in the last quarter of the year hotel occupancy rates in Bali will fare better than most cities in the country -- including Jakarta and Surabaya -- due to the large local tourist potential. (dis)

Old Town festival offers visitors rare recipes

Mariani Dewi, The Jakarta Post, Jakarta | Fri, 11/07/2008 10:55 AM  

"Let your nose guide your way" is the method the city's tourism agency is using to gather a crowd at the Fatahillah Park in the Old Town area, West Jakarta, this weekend for the 2008 Old Town Tourism Attraction. 

Some 50 people, from amateur cooks to professional chefs, will cook up a storm in the food competition. They will have to cook as close to the original recipe as possible. 

"We want to remind people of how it used to be. These recipes have influenced Betawi food up until now," Arie Budiman, the head of the tourism agency, said Wednesday 

There are 10 recipes from local original dishes like besengek daging (meat dish) and sate tulang(satay), to bestek (beef steak) from the Netherlands and sukiyaki (soup) from Japan. 

To win, a dish will have to wow the taste buds of five judges. Visitors can try the dishes and, after the scoring is complete, take the meals home. 

It is the second time the annual event has been held. It will showcase local-made Batavia (old Jakarta) products that cannot be found in modern markets. 

There will art performances from local singers and dances, as well as traditional performances of three cultures that influenced Indonesian arts: the Portuguese keroncong tugu, Arabic zapin dance and gambus music, and Chinese lute music and dragon dance. 

Twenty antique cars will be on display. Among them are cars made in 1928. Visitors have the chance to ride around the square in a car made in the 1950s. The car cannot go further because of its old engine, which gets overheated easily. 

"We want to ignite a sense of nostalgia through all the senses -- through the sight of the old buildings and old cars, and the taste of traditional and increasingly rare foods," Tinia Budiarti, head of the Jakarta History Museum, said Tuesday. 

The museums, which are housed in Dutch colonial buildings, will be open over the weekend. 

The event will start Saturday, Nov. 8, with the cooking competition, while the musicians and dancers perform on stage. The day will end with a fireworks display at around 7:30 p.m. 

There will be more music and dance performances Sunday morning. The afternoon will be filled with prayers to celebrate National Heroes Day. 

Arie said he hoped visitors would learn about Jakarta's roots and the event would encourage the private sector to host events in the area. 

"We all know the Old Town is one of the city's famous landmarks, so we do not really need to develop it physically. But we need to develop the soul of the place and tell people its historical importance."

Glass maker Asahimas boost from building industry

The Jakarta Post, Jakarta | Sat, 11/08/2008 11:50 AM

 

Publicly listed PT Asahimas Flat Glass, Southeast Asia's largest glass producer, recorded a hefty profit during the first nine months of the year on higher demand from the construction sector.

 

The subsidiary of Japan's Asahi Glass Co. Ltd. booked Rp 205 billion (US$18.5 million) in net profit, up by 111 percent from Rp 97 billion posted in the same period of last year, according to the company's director, Samuel Rumbajan on Friday.

 

"The 10 to 15 percent growth in the construction sector this year has boosted our sales during the last nine months," he said.

 

Samuel said the company's strategy to increase its product prices by an average of five percent had also helped boost sales, which soared to Rp 1.71 trillion from Rp 1.34 trillion.

 

More than 70 percent of the company's production is flat glass for construction purposes while the remaining 30 percent is for the automotive industry.

 

In response to anticipated lower demand next year due to global recession, Samuel remained upbeat that the company's growth would remain steady.

 

"As the world's industry growth is declining, we can't predict our growth next year, or even until the end of the year," he said.

 

The company distributes its product mainly to Asian countries, Australia and New Zealand.

 

Asahimas is now operating three factories in Jakarta, Cikampek and Sidoarjo, East Java, with a total annual production capacity of 570,000 tons of flat glass, 4.5 million square meters of safety glass and 2.4 million square meters of mirror.

 

The company is 43.86 percent owned by Asahi Glass and 40.67 percent by PT Rodamas, according to the Indonesia Stock Exchange. (hwa)

The story of Indonesia

Vietnam.net

At a recent conference in Ho Chi Minh City on the real estate market in Asia Pacific, Ir.F.Teguh Satria, Chairman of FIABCI Indonesia, talked about the success of Indonesia’s model of building houses for low-income earners.

 

He said that in Indonesia, apartment buildings have a maximum of six stories and no elevator. Every apartment has a space of 21-36 sq m, and the maximum price is $15,000 (VND250mil). Meanwhile, the average land price in Indonesia is $1,000/sq.m., the same price as in HCM City.

 

The Government of Indonesia has been applying these measures to support low-income earners in buying houses. People are able to make payments through installments over 30 years, while they can also receive Government support in bank interest rates. Only people who have an income of less than $480 a year, are eligible to buy these apartments. Meanwhile, construction companies enjoy the low construction tax of 1% (the normal tax is 5%) and enjoy VAT reduction.

 

These measures allow companies to earn a profit of 10-15%, and allow low-income earners to buy houses without completely emptying their pockets. Indonesia has built 100,000 apartments over the last two years.

 

And the opportunity for Vietnam

 

In HCM City alone, there are 200,000 laborers working in industrial zones and export processing zones, and over 1.5 million immigrants who need accommodations.

 

The HCM City Real Estate Association has asked the Government to amend the Housing Law to allow the building of apartments with a space of less than 30 sq.m., which will help to reduce the price of apartments

 

Though the proposal has not yet been approved by the Government, a lot of real estate companies have jumped into the market of houses for low-income earners.

 

Le Viet Hai, General Director of Hoa Binh Construction and Real Estate Corporation, said that now is the right time to develop the a supply of houses for low-income earners.

 

Hai said that with the current decrease in the price of construction material and the oversupply of high-grade real estate projects, investors will inject money in building low-cost apartments

 

He believes that if the Government has suitable policies, construction companies will spend money on developing suitable construction processes, which will allow for the reduction of the construction cost by 20-30%.

 

If this is able to happen, the price of a 30 sq.m. apartment will cost only $20,000, and the price could be decrease even further if construction companies were able to benefit from tax reductions.

 

(Source: Dan tri)

More cities to join urban sanitation development program

Syofiardi Bachyul Jb, The Jakarta Post, Padang | Fri, 11/07/2008 10:56 AM 

Four more cities will take part in an urban sanitation development program that has been jointly funded by the Indonesian and Dutch governments since 2007, an official says.

The four cities, which will join the program next year, are Semarang (Central Java), Kediri (East Java), Padang and Bukittinggi (both in West Sumatra). Ten other cities joined the program in 2007 and 2008.

Representatives of each of the 14 cities will take part in a three-day workshop on urban sanitation opened in Payakumbuh, West Sumatra, on Thursday.

"They will share their respective experiences in managing urban sanitation," said Fernando M. Siagian of the Home Ministry's directorate of natural resources and effective and efficient technology.

"We hope the workshop will result in more support and stronger commitment from the cities' authorities," Siagian told a press conference held here Wednesday.

The urban sanitation program, Siagian said, was part of the National Development Planning Board's (Bappenas) Indonesian Sanitation Sector Development Program (SSDP) and the Trust Fund's Water and Sanitation Program (WASAP) jointly funded by the Indonesian and Dutch governments.

It was initially implemented by six cities, Payakumbuh (West Sumatra), Blitar (East Java), Surakarta (Central Java), Banjarmasin (South Kalimantan), Jambi (Jambi) and Denpasar (Bali).

Siagian said they were included in the program after jointly signing the "Blitar Declaration" on Mar. 27, 2007, which was a pledge by each city to implement a pro-poor sanitation development program as part of their development policies.

The six original cities were chosen, he added, because their mayors had made a pledge to seriously manage urban sanitation and allocate part of their budget to make it a success.

"The six cities are expected to make themselves a model in urban sanitation management," he said.

Siagian also said that even before signing the declaration, the six cities had been implementing a planned sanitation management program involving the community.

"The achievements were different from one city to another. In Payakumbuh, for example, sanitation management was included in its main middle-term urban sanitation strategy," Siagian said.

The four cities that joined the program this year are Central Java's Tegal and Pekalongan and East Java's Batu and Malang.

Siagian said sanitation must be considered a priority in a city's development policy, especially considering that 36 out of 1,000 children under five years old die each year because of poor sanitation.

At the same time, he added, 70 percent of the country's rivers are polluted by garbage and other waste, while almost two million tons of the 6.4 millions tons of sewage produced annually had yet to be handled properly.

He also expressed concern that most cities in Indonesia had yet to manage their sanitation well even though it was a determining factor in the health of residents and the environment.

"In many cases, the human sewage and waste in urban areas cannot be managed properly because of a lack of awareness among the community and a lack of good planning from the city administrations," he said.

Planned heritage site hotel protested

Blontank Poer, The Jakarta Post, Surakarta | Fri, 11/07/2008 10:55 AM  

Plans to build a hotel in the historical Vastenburg Fortress in Surakarta are facing protest from artists and cultural experts, who claim the proposed construction has the potential to damage the heritage site. 

"It would be better if the municipal administration and the investors reviewed the plan before causing any potential damage to the city," Chairman of Surakarta's Arts Council Murtidjono said. 

Speaking at the Surakarta mayor's residence Monday evening, Murtidjono said the review was urgent because Surakarta recently pioneered the establishment of the Indonesian Heritage Cities Network (JKPI). 

The Surakarta mayor along with investors, environment experts (Amdal) and representatives from Central Java's conservation center took part in the discussions. 

Mayor Joko Widodo (Jokowi) said the matter put his administration in a dilemma. He said he personally thought it was deplorable that the city's heritage sites and buildings were vanishing. 

"Under normal circumstances, I would have to issue the license to the hotel investors because all the requirements have been fulfilled," Jokowi said. 

These requirements include an overview by Amdal, an examination of the appropriateness of the planned hotel and a letter of recommendation from the conservation center. 

"If I refuse to issue the license, the investors will sue me," Jokowi said. 

Murtidjono said Amdal lacked objectivity and transparency. 

"The Amdal team has based its analysis mainly on the economic considerations and failed to acknowledge the archaeological analysis," he said. 

Located between the colonial administration office (now the city hall) and the Surakarta Palace, Vastenburg Fortress was built in 1750 by Dutch colonizers. 

The fortress was a surveillance post used to monitor the movement of palace troops, who the colonial administration feared were capable of rebellion. 

The investor, Robby Sumampouw, argued the construction would not damage the main walls and structure of the building. 

"We will not flatten the walls. We will build the hotel inside them," Robby, also owner of the Hailai entertainment center in Jakarta, told The Jakarta Post.

 

He said he would build a nine-story boutique hotel on the site, equipped with a convention hall and luxurious shopping center. 

He said colonial-style architecture would be adopted for the Rp 300 billion project, which will begin construction by the end of the year.

POLISHING MONAS

The Jakarta Post | Thu, 11/06/2008 5:11 PM 

  

Construction workers gather trash and debris as part of the restoration project of the National Monument or Monas in Jakarta on Thursday. (JP/J. Adiguna)

 

Property sector heads for slowdown

The Jakarta Post, Jakarta | Wed, 11/05/2008 10:36 AM 

 

The property business in Jakarta and surrounding areas is heading for a slowdown next year due to increases in interest rates, inflation, prices of materials and rental costs, according to a property consulting company.

 

"The impacts of the global economic crisis will likely affect the domestic property sector and indications of a slowdown in supply and demand in Jakarta and its surrounding areas have already been noted since October," said head of marketing and communications at PT Procon Indah, Dini Priadi, on Tuesday.

 

On the supply side, she said, high interest rates, inflation and prices of materials had discouraged developers from continuing their projects.

 

Hendra Hartono, Procon chief business development executive, said only developers that mobilized financial resources on pre-sale payments and cash flows or on strong commitments from would-be tenants would continue their projects.

 

Dini said that the public's low purchasing power in the country, affected by high interest rates, slower economic growth and high inflation, would hurt the sector on the demand side next year.

 

Key Bank Indonesia interest rate currently stands at 9.5 percent, with accumulative inflation already hitting double digits in the first ten months of the year.

 

Meanwhile, Indonesia's economic growth target has also been adjusted in response to the global economic downturn. The government's revised 2008 state budget lowered the assumption on targeted growth for this year end to 6.46 percent, from the previous 6.8 percent.

 

Next year, the economy is earmarked in the 2009 state budget to grow by 6 percent.

 

The high interest rate, for example, has pushed the mortgage rate up to 17 percent, which will not be so attractive for potential buyers, according to Procon in its third quarterly Jakarta property market review and 2009 outlook.

 

The report says the rupiah's depreciation against the U.S. dollar also pushed up construction costs, which will affect the new supply of properties.

 

Meanwhile, the rupiah's depreciation has also boosted the cost of U.S. dollar-denominated property rentals, which will affect occupation rates of properties.

 

The value of the rupiah depreciated from Rp 9,330 against the dollar on Sept. 24 to Rp 10,850 by Tuesday.

 

While the outlook is a bit gloomy in the coming year, the property sector did fairly well in this year's third quarter, the report shows.

 

It says cumulative supply of office space at Jakarta's central business district (CBD) rose to 3.81 million square meters as of September from 3.63 million square meters as of June, while the cumulative demand increased to 3.29 million square meters from 3.21 million square meters.

 

The cumulative supply of rental apartments increased to 35,000 units from 34,460 units and the cumulative demand to 25,200 units from 24,000 units. (dis)

Citra Marga to build $195m turnpike in the Philippines

Ika Krismantari, The Jakarta Post, Jakarta 

Citra Marga Nusaphala Persada (CMNP), a publicly listed toll operator, plans to build a turnpike in the Philippines with a total investment of US$195 million. 

Director of operations Hudaya Arryanto said over the weekend the project would start early next year and was scheduled to be completed in 2010. 

The project, known as Metro Manila Skyway, is the company's second project in the Philippines. CMNP will build a toll road connecting Bicutan to Alabang with a total length of 6.8 kilometer. 

The first one involves the construction of a 13.5-kilometer toll road connecting Buendia and Bicutan regions. The company has a 21 percent stake in the two projects. 

"We are in talks with a number of local banks in the Philippines to provide loans for the project," Hudaya said, without naming the banks. 

Aside from the projects in the Philippines, the company also has projects in Malaysia. 

On the domestic front, the company's ongoing projects include Cawang-Tanjung Priok turnpike (North South Link) -- a section of Tanjung Priok Port-Jembatan Tiga (Harbor Road) and Surabaya Eastern Ring Road tollway. 

It plans to start the construction of a Depok-Antasari turnpike with a total length of 22.8 kilometers by the end of this year. 

With its domestic and overseas projects, the company expects a net profit of Rp 120 billion ($11.4 million) this year, having recorded Rp 92 billion in net profit in the first nine months of the year. 

Formerly controlled by the eldest daughter of former president Suharto, Siti Hardiyanti Rukmana, CMNP is now 58.3 percent owned by the public. 

State toll road operator and builder PT Jasa Marga also owns about 17.8 percent stake in the company.

Japanese-built school opens for kids with disabilities

Multa Fidrus, The Jakarta Post, Tangerang 

The sounds of laughter and cheerful chatter filled the air at the new school building for children with disabilities in Tangerang on Tuesday. 

The students, most of whom are from low-income families, knew something different was going on because the campus of SLB Yanaiz had been decked out for the building's inauguration ceremony.

 

 

SIMPLE GESTURE: Japanese Ambassador to Indonesia Kojiro Shiojiri shakes hands with a student of SLB Yanaiz, a school for disabled children and adults in Tangerang, as school founder Izak Timisela (center) looks on. The school’s new building was inaugurated Tuesday. (JP/Mult Fidrus) 

Japanese Ambassador Kojiro Shiojiri presided over the ceremony at the campus on Jl. H. Ridwan, Bojong Poncol kampung in Pinang district, Tangerang municipality. 

Tangerang officials also attended the event. 

According to Shiojiri, the Japanese government had financed the construction project of the school under the Grassroots Program. The financial assistance amounted to US$85,994, he said. 

"We want children with disabilities to be able to study at this school," he said. 

Twenty-year-old Khalid, a fourth grader in a class for people with autism, said the new school building was closer to his home. 

"I love the new classroom," Khalid said, who is suffering from hydrochepalus and needs regular medicine to control its symptoms. 

The school's 123 students pay school fees of between Rp 5,000 (40 US cents) and Rp 10,000 each month. 

"The most important thing is that I pay (school fees), no matter how much it is. The money is for the teachers' salaries," Khalid said. 

SLB Yanaiz is managed by Erihatu Samasuru Lesuri Tapirone, a humanitarian foundation established by Izak Timisela in 2000. 

"We started the school in a small rented house and now we have a three-story building with 12 classrooms, a health clinic, a kitchen, a teacher's office and a meeting hall, thanks to the Japanese government," he said. 

Unfortunately, the classrooms have yet to receive new furniture so the students and teachers still use old desks and chairs. Some of the desktops even have holes in them.

Developer keeps classrooms locked over debt

Theresia Sufa,  The Jakarta Post, Bogor 

For the past year Nurlia and her classmates have had to sit on the floor of their school corridor, bending down for almost the whole school day from 7:30 a.m. to 12 p.m. 

"It hurts my back and stomach because I often get cold," said the third grader at state elementary school SDN Cilubang 06 in Dramaga, Bogor. 

LEAN ON: Third grade teacher Ujang Suyana teaches his class in the corridor of state elementary school SDN Cilubang 06 on Wednesday. Developers have locked the school’s newly built classrooms because the school cannot afford to pay for them. (JP/Theresia Sufa)

"When I get home my mother always bathes me in cajuput oil to relieve me from the pain." 

Third, fourth and fifth graders at the school have to study outdoors because the new buildings, which are supposed to be their classrooms, have been locked by the developer. 

"We don't have the money to pay for the classrooms," school teacher Madrohi told The Jakarta Post on Wednesday. 

He said the school was in debt from the construction of the new classrooms. 

The project started in May 2007 and was funded by the West Java administration. The Rp 120 million (US$10,909) fund was disbursed in August last year and was received by headmaster Fatimah in cash. 

The handover of the money was witnessed by the school committee and an official from Dramaga district administration, Rosadi. The teachers, according to Madrohi, were not informed about the fund. 

The construction had been going for six months when the workers stopped. 

"The school committee reported that the developer didn't receive all the money intended for the construction," Madrohi said. 

Rosadi found another developer to complete the project in September. The developer, however, is withholding the new classrooms until the school pays Rp 73 million for the work. 

"The developer threatened to dismantle the classrooms," Madrohi said. 

"We reported the case to the education agency and during the meeting with the school headmaster, Rosadi said he had stolen the fund. He was given window time to pay up what he had taken, but he hasn't shown up at the office. 

"Headmaster Fatimah retired three months ago, so it's us, the teachers and the 121 students, who have to bear the consequences," Madrohi said. 

In addition to lacking three functional classrooms, the school doesn't have a lavatory, he said.

Mayors agree to safeguard, protect cultural properties

Sri Wahyuni and Blontank Poer, The Jakarta Post, Surakarta

Mayors of the 37 participating member cities in the Euro-Asia Organization of World Heritage Cities (OWHC) agreed Tuesday to emphasize the need to safeguard and protect cultural properties and develop a harmonious lifestyle.

Reading out a declaration at the closing ceremony of the two-day WHC conference here, host Surakarta Mayor Joko Widodo said doing so would give the cities a distinct image and encourage a vibrant cultural lifestyle at various levels of community.

"A clear policy, strategy and implementation program needs to be developed in each city," read Joko Widodo, popularly known as Jokowi.

The Solo Declaration, named after Surakarta's alternate name, underscored that outstanding cultural works of the past be maintained and preserved so current and future generations could learn, understand and enjoy the wisdom and experience of the past.

"Cultural heritage produces inspiration and motivation as well as economic potential and input for further cultural development," the nine-point declaration stated.

Representatives of participating cities also highlighted in the declaration the importance of local, national, regional and international efforts to protect, preserve and revitalize traditional culture and knowledge.

The conference, attended by some 450 delegates, acknowledged cultural diversity and multicultural understanding was a basic foundation on which to build a harmonious world.

The understanding and appreciation of the world's rich and diverse cultural heritage can contribute to multicultural understanding and friendship across regions and countries, the conference agreed.

Also in attendance Tuesday were OWHC Secretary-General Denis Richard, OWHC Coordinator of Euro-Asia Secretariat Ressikh Sagitov and chairman of the Indonesian Heritage Trust Setyanto P. Santosa.

The conference was part of a six-day WHC conference and expo held from Saturday to Thursday, which also presented a series of workshops on wayang (Javanese shadow puppets), keris (traditional double-edged daggers), gamelan (traditional Javanese percussion ensemble) and batik.

Speaking at a joint press conference held after the closing ceremony, Setyanto, also a member of the conference's organizing committee, said the declaration was the beginning of a long struggle to preserve heritage in Indonesia, following its signing by government officials.

"What we have witnessed so far here in the country is that local administrations are the main perpetrators in the destruction of our heritage," Setyanto said.

He added many administrations had turned heritage buildings and sites into modern shopping malls in their bids to attract more visitors and hence more money.

"They forget that malls abroad are much bigger and more attractive," Setyanto said.

Jokowi expressed similar sentiments, saying the declaration held strategic values of promoting Indonesian cities as new tourism destinations.

INDONESIA: Multi Donor Fund Photo Competition

Worldbank

The Multi Donor Fund is again holding a photo competition as an effort to involve partner and implementing agencies staff and consultants, staff of all donor agencies, and beneficiaries in capturing implementation of MDF’s projects. Participants will compete for prizes and a chance to have photos featured in the 2008 Annual Report and other collateral materials. 

Theme: Capacity Building in the Reconstruction and Rehabilitation Efforts 

We strongly encourage staff of World Bank, donor agencies and partners, from amateur to expert photographers, to submit photos. Take advantage of photo opportunities while being on-the-field or traveling for a chance to see your photo in the Annual Report. If not, sponsor colleagues, friends or relatives and share the prize! 

List of prizes: 

• 1st place prize : Rp. 3,000,000
  
• 2nd place prize : Rp. 2,500,000
  
• 3rd place prize : Rp. 2,000,000
  
• Favorite photo   : Rp. 1,000,000
• Other photos selected for publication: Rp. 500,000 each 
  
  
  

How to participate, you can visit this following links to learn more about the competition:

• Rules of competition
  
• Download entry form
  
• Photography tips 
  
  
  

We also welcome sequences of related pictures - do not be afraid to take multiple shots of your subject from different angles and in different lighting conditions! Please note though, sequences should show interaction or process related to capacity building. 

To learn more about MDF projects please visit: http://www.multidonorfund.org/projects

Ternate`s Orange fort soon to be renovated

Ternate, (ANTARA News) - The Orange Fort, a colonial heritage in Ternate, North Maluku (Moluccas) would soon be renovated with Rp2 billion fund taken from the 2008 state budget as it seemed to be neglected. 

"The Orange Fort will soon be renovated. The Rp2 billion fund from the central government is now in a tendered contract process," the Chief of Ternate`s tourism and cultural office, Arifin Umangsaji, said here Sunday. 

The Orange Fort was built in the 16th century by the Dutch government when they colonized Ternate. In Ternate, similar forts were also built by Portugal and Spain during their ruling times. 

Arifin said the Orange Fort renovation would raise its function for scientific needs and tourist attraction in the area. 

The Orange Fort is located in the center of Ternate city, and has become the center of attention of many people due to the concerning condition of the valuable historical heritage. 

Meanwhile, a Ternate history observer, Djafar Noho S.pd, wished that the Fort`s renovation should be done precisely to keep its originality as a historical relic. 

Contractors should involve experts dealing with historical renovation and consult with Ternate`s royal family who knows the fort very well. 

"I hope the renovation deviation case in Kastela fort several years ago will not recur on the Orange Fort. This has to be the contractor`s attention and everyone relevant to this renovation project," he said.

Indonesia to learn Germany`s water management

Jakarta (ANTARA News) - The head of a study on water resources and research on technology application by the Agency for Assessment and Application of Technology (BPPT) Sutopo Purwo Nugroho said Indonesia needs to learn German water management which uses a lot of Natural Treatment Plants.

 

"Natural treatment plants are needed for development, which is commonly applied in Germany," he said in a seminar on 10 million new clean water lines in 2013 here Wednesday.

 

He said the natural treatment plants is a concept of taking water from underground sources.

 

The concept is commonly applied in Germany where 65 percent of basic water sources is the ground, 9 percent springs, 5 percent wells and 21 percent of the ground surface like lakes and rivers.

 

"Most of Germans don`t have water purifier installations because drinking water is obtained from springs and the ground on mountain slopes," he said.

 

He also mentioned that some German drinking water companies has a strict policy by forbidding farmers to use chemical fertilizers and pesticides.

 

No chemicals and distribution pumps are needed because they are mostly located on mountains, Sutopo said.

Jakarta to undergo rotating two-week power cuts starting July 11

Jakarta (ANTARA News) - State electricity company PT PLN will impose alternating two-week power cuts in Jakarta and environs starting July 11 as pipelines supplying gas to its Muara Karang and Tanjung Priok thermal power plants would undergo repairs.

 

"We apologize for the power cuts but the gas pipelines need so repairs," PT PLN spokesman Azwar Lubis said on Friday.

 

The alternating power cuts would mean a reducation in power supply of an average of 150 megawatts per day, he said.

 

He said BP West Java as the operator of the gas pipelines had pledged to speed up the repair work so that the duration of alternating power cuts would be shorter than expected.

RI's first green building institution starts up

The Jakarta Post, Jakarta | Fri, 06/20/2008 10:33 AM

 

The country's first green building institution has been established to certify and rate environmentally friendly housing and workplaces.

 

The Green Building Council of Indonesia (GBCI), is currently making comparative studies on international best practices and plans to launch its first-ever rating system early next year.

 

GBCI currently has 64 members comprising academics, property industry players and professionals and is applying for membership in the World Green Building Council.

 

"GBCI will set a framework for green facilities management, which will generate various benefits for all -- companies and society," Tondy O. Lubis, one of the founders of GBCI, told The Jakarta Post on Thursday.

 

The concept of green buildings emphasizes increased efficiency in the use of electricity, water and building materials, from the design stage and construction through to maintenance.

 

Lubis said demand for green buildings had grown tremendously in Asia with Singapore, Taiwan, Japan, Hong Kong, the Philippines, Korea and India among those that already have green building councils. They issue certificates to building owners rating the environmental sustainability of their buildings.

 

Tondy said that in Indonesia, such a council would issue certificates with four levels certified, silver, gold and platinum -- depending on how they met the required measures.

 

"But obtaining the certificates is voluntary," said Tondy, who is also the director for facility management services at Indonesia's Colliers International, a global real estate management firm.

 

According to Colliers, the 2008 Green Building Market Report found that most Indonesian companies were interested in making their buildings green because they believed it would not only benefit the environment and employees but also increase company profitability.

 

"Now, Indonesian companies have realized that green buildings will mean they can reduce operating costs," Tondy said, adding that multinational companies in Indonesia such as Citibank and BHP Billiton were among those interestrd in green buildings.

 

Tondy said the cost of a green building would be two to four percent higher than a conventional building. However, over 20 years, its financial return could be 10 times higher as a green building could reduce energy consumption by as much as 30 percent.

 

"That's why a well-conceived plan is very important and a thorough survey must first be conducted before constructing a green building," Tondy said.(dia)

Govt to apply Fidic standards to tenders for large-scale projects

Jakarta, (ANTARA News) - The government will soon make it a rule that tenders for large-scale construction projects must meet the international standards of Fidic (Federation Internationale Des Ingenieurs Conseils), Public Works Minister Djoko Kirmanto said.

 

"By adhering to Fidic standards, tenders can be participated in by all contractors, including contractors from other parts of the world," the minister said here Thursday.

 

He said at present only a few Indonesian contractors were able to meet international standards in project tenders but it was time that more and more of them acquired the ability so that they could also compete overseas.

 

"We now live in a world that is becoming increasinly globalized so it is time that tenders for large-scale projects conform with Fidic standards so that world-class players can also take part," he said.

 

According to the minister, many infrastructure projects requiring huge investments would be implemented in Indonesia in the future and therefore tenders should increasingly be made to meet Fidic standards so that interested world-class contractors would have no difficulty in making bids.

 

On the other hand, by getting used to meeting international tender standards, Indonesian contractors would also be increasing their ability to take part in tenders in other countries, he said.

 

So far, only very few Indonesian contractors were already accustomed to complying with international tender standards. Three of them were Waskita Karya, Wijaya Karya and Adhi Karya.