Content : Bali remains secure after bomber s execution Editor s corner. Indonesian Minister of Public Works visit ADCCI.. 3

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2 Dear Readers, Editor s corner H.E. M. WAHID SUPRIYADI Ambassador Extraordinary and Plenipotentiary JOKO SANTOSO Minister Counsellor/ Political Affairs NICO ADAM First Secretary/ Economic Affairs M. ARIF HIDAYATULLAH Second Secretary/ Economic Affairs ABDI SATYA UTAMA Second Secretary/ Information, Social and Cultural Affairs HANAN HADI Third Secretary Protocol & Consular Affairs SUKARTONO DALIL Administration Officer ASDEDI Administration Officer THE EMBASSY OF THE REPUBLIC OF INDONESIA Zone 2, Sector 79, Villa No. 474 Sultan bin Zayed Street (Street- 32), Al Bateen Area P.O. BOX 7256 Abu Dhabi, United Arab Emirates Phone : Fax : indoemb@emirates.net.ae kbriabd@indonesianembassy.ae Website: Design Graphics and Layout: Nico Adam November, where most exhibitions occur, is the busiest month in United Emirates Arab. Many big companies and countries participate in those exhibitions, including Government of Indonesia and also the private sectors. Embassy of Indonesia as a host for all guests was trying all best in supporting all the missions to arrange and meet their counterparts here. Minister of Public Works Djoko Kirmanto lead a number of construction businessmen to win a number of construction projects in the Gulf market by taking part in the expo in order to seize construction business opportunities. UAE has become the financial center in the Middle East and Dubai is well known for holding biggest an internationally recognized expo such as The Big Five which specifies in building construction. Indonesian Representatives in UAE always encourages especially private sectors and SME s to participate to many potential exhibition held in UAE to promote not only products but also their skills expertise and capabilities to compete with other countries in this region. There are a number of changes in this edition; namely, the increase in number of pages with a new column for Visit Indonesia and photo gallery. Finally, your comments and suggestions are highly appreciated. Regards, Nico Adam Editor in Chief Lay out and Graphics Designer Content : Indonesian Minister of Public Works visit ADCCI.. 3 Emaar s $600 million Indonesian Venture to be Operational by Reasons why you should visit IFFINA of March VP says now right time to invest in infrastructure sector.. 6 Mexico and Indonesia sign oil cooperation deal... 6 Jakarta to stop all business charges... 6 Foreign investment up, Jakarta takes most... 7 Economy grows by 6.1% y-o-y in Q Gallery... 8 Visit Indonesia: RIAU ISLANDS The Beauty Of Nature... 9 The old man is awaiting for prayer time at Penyengat Island Mosque, Riau (Nico) 2 Govt optimistic tourist arrivals to reach 10 millions in 2009 Bali remains secure after bomber s execution... 12

3 TRADE Al Kaabi stressed on the strength of the economy and the continuity in the implementation of projects planned in various fields and sectors in the UAE in general and Abu Dhabi in particular. Indonesian Minister of Public Works, H.E. Djoko Kirmanto accompanied by President Special Envoy for the Middle East H.E. Dr. Alwi Shihab visit ADCCI, received by Board Member of ADCCI, H.E Khalfan Saeed Jumaa Al Kaabi (Herdi) Indonesian Minister of Public Works visit ADCCI He also stressed the importance of establishing joint industrial projects between Abu Dhabi and Indonesia in particular, and invite companies and institutions in Indonesia to take advantage of various opportunities available in Abu Dhabi and the multiple advantages offered by foreign companies wishing to invest in the UAE. He added: we hope to see more participation in the Indonesian industrial, real estate, health and education projects in the Emirate of Abu Dhabi planned by the stakeholders in the Emirate to be implemented in the coming years. His Excellency, Djoko Kirmanto Minister of Public Works of Indonesia and the delegation of construction and contracting companies which recently visiting the UAE met with His Excellency Khalfan Saeed Al Kaabi, board member of the Chamber of Commerce and Industry Abu Dhabi, Chairperson of the Construction Commission. The meeting discussed the current economic issues as well as trade and investment cooperation between the Emirate of Abu Dhabi and Indonesia. numbers impels us to promote cooperation between companies and institutions in both countries, especially in the area of the Emirate of Abu Dhabi which is seeking to focus on its plan for the next phase particularly in industrial, tourism and real estate development sectors. He emphasized the support of ADCCI for all Indonesian companies wishing to establish factories and projects in Abu Dhabi. The representatives of a number of Indonesian companies that HE Saeed Khalfan Al Kaabi praised the economic relations between the UAE in general and Abu Dhabi in particular with Indonesia, noting that Indonesia is one of the major trading of UAE and Abu Dhabi partner in Asia. Its pointed out the figures of bilateral trade between Indonesia and the UAE that have risen significantly Over the past few years. This increase in trade H.E Khalfan Saeed Jumaa Al Kaabi take the Minister touring to the chambers office.(herdi) 3

4 INVESTMENT attended the meeting had announced plans to open factories of their companies in the Emirate of Abu Dhabi in the manufacture of iron and building materials for this vital sector in the emirate. Al Kaabi called on the Indonesian companies to promote industrial investment in the Emirate of Abu Dhabi and to take advantage of services available in the Emirate to enter markets in the region, as well as take advantage of the renaissance, urban and housing boom witnessed by the Emirate. Abu Dhabi needs to provide requirements and construction materials in collaboration with companies operating in the Emirate of Abu Dhabi and other specialized agencies in the Emirate. For his part, the Minister of Works paid tribute to the good Indonesian-UAE economic and trade relations, with its potential to help investment climate and stability in the region. H.E Khalfan Saeed Jumaa Al Kaabi give explaination to the Minister and Ambassador Wahid Supriyadi about one stop multi service unit in chamber (Herdi). 4 The Dh2.2 billion ($600 million) mega-tourism development venture between Dubai s Emaar Properties and Bali Tourism Development Corporation in Indonesia s Lombok Island is now underway and is expected to be operational by Minister Djoko Kirmanto, Indonesia s Public Works, disclosed this to Khaleej Times during a forum on tourism and investment in Dubai the other day. We have started constructing the international airport on the island, and other infrastructures such as water distribution system, water treatment plant, roads and others are now in place. Lombok Island, which is less than half an hour flight from the world famous Bali Island, is now gradually converted into a world-class residential and resort community sprawling over 1,175 hectares. Construction of the infrastructure needed for the island to become a tourist destination started in April this year, a month after the signing of a joint venture in Dubai between the state-owned Bali Tourism Development Corporation and Dubai s Emaar Properties PJSC to undertake the Lombok mega-tourism and mixed-use project. Senggigi beach, Lombok (Nico Adam) Emaar s $600 million Indonesian Venture to be Operational by 2010 Minister Kimanto said the joint venture underlines the strong bilateral business relations between Indonesia and the UAE. Emaar is one of the first developers from the Middle East and North Africa region to expand into Indonesia, an emerging market with strong growth potential, especially in the tourism sector. Three other UAE-based companies expanding to Indonesia, he said, are the Ras Al Khaimah (RAK) Investment Authority, which will invest in South Sumatra to build an integrated port and a railway line, Pacific-Inter Link, which has been in Indonesia since 1999 with an initial investment of $150 million, and will put in additional $500 million to build a palm oil refinery plant in Dumai, Riau, and Al Ghurair Group through its subsidiary ETA Star which plans to invest around $500 million to enter Indonesia s refinery industry. We are promoting Indonesia to Dubai and the MENA Region as prospective homes for investors, who are interested to take part in food safety program. We also need about $150 billion in the next five years to invest in public infrastructure development projects to maintain our economic growth at six per cent annually. (Khaleej Times)

5 VP says now right time to invest in infrastructure sector Vice President Jusuf Kalla said now was the right time for the government as well as private enterprises to invest in the infrastructure sector as the prices of commodities were down. Bank interest rates are admittedly rather high, but they will eventually be negotiable, Kalla said at the opening of a seminar on economic projections for 2009 here Tuesday. Citing an example of the lower commodity prices, he said the price of steel had now dropped by about 50 percent and could decline further in the days ahead. He said the government had called on national banks to make more funds available for companies intending to invest in the infrastructure sector, and the government had enough capital to raise its expenditures for development of the infrastructure sector. Mexico and Indonesia sign oil cooperation deal The presidents of Indonesia, Susilo Bambang Yudhoyono, and of Mexico, Felipe Calderon, signed an oil cooperation agreement Monday (17/11) involving their two staterun oil companies, Pertamina and Pemex, respectively, the two leaders announced after a meeting. The agreement, Calderon was quoted by AFP as telling reporters, establishes a cooperation framework in the fields of development, scientific and technological investigation, and exploration and drilling... between Petroleos Mexicanos (Pemex) and Pertamina, Indonesia s oil company. Yudhoyono, who arrived here from Washington after attending the Group of 20 economic meeting in Washington over the weekend, said he was also seeking to increase bilateral economic relations between the two countries. Calderon, who also attended the G20 meeting, said another cooperation agreement in agriculture, education and diplomatic training was also signed with the visiting president. Jakarta to stop all business charges The Jakarta administration will soon erase all fees and charges on business to help companies deal with the financial crisis, the head of the Jakarta Small and Medium Enterprises and Cooperatives Agency, Ade Harsono, said this week. According to Harsono, Jakarta Governor Fauzi Bowo has already approved the initiative. Businesses will still need to apply for operating permits, but no fee is incurred, he said, adding that once a business is running, it will be taxed instead. The initiative has also been suggested to the State Minister for Small-Medium Enterprises and Cooperatives. He said the total retribution generated to date from fees and charges, around Rp15 billion, were negligible. 5

6 INVESTMENT Foreign investment up, Jakarta takes most Endowed with rich natural resources and a large population, Indonesia is becoming more attractive for investors as indicated by an increase in the number of realized direct investment projects involving foreign businesspeople. Chairman of the Investment Coordinating Board (BKPM) Muhammad Lutfi said Wednesday actual domestic and foreign investment had reached US$14.2 billion in the January to November period, higher than the full-year target of $9.92 billion. Of the total, $12.5 billion was foreign direct investment (FDI), and the remaining $1.7 billion was domestic-based. FDI jumped by 40 percent during the period but domestic investment plunged by 51 percent. The drop in domestic investment is due to the fact that local companies prefer to form joint ventures with foreign companies in order to pay less tax, he said, adding that the condition was unlikely to continue as the government would soon implement a new tax law. Under the new tax scheme, income tax will be slashed to 28 percent in 2009 and to 25 percent in 2010 from the current 30 percent. The actual investment figure excludes those in the sector of oil and gas, mining, banking and financial institutions, including insurers. Jakarta received the largest chunk of FDI, reaping $9.62 billion from 404 projects, followed by West Java with $2.39 billion from 255 projects, and Riau with $460.9 million from eight projects. 6 In domestic investment, West Java ranked the top with Rp 3.67 trillion (US$334 million) from 52 projects, tailed by East Java with Rp 2.56 trillion from 37 projects, and Banten with Rp 1.95 trillion from 29 projects. According to Lutfi, the transportation, storage, telecommunications, metal, machinery, electronics and automotive sectors were the largest contributors to the investment. The good news is that so far some 650,000 people have been employed in the realized investment projects (begun) between January and November. This is a sign that our investment climate is getting better. We hope the trend will continue, especially through intense and serious efforts by local administrations to net more investors, Lutfi said. Last year, FDI reached $10.34 billion; with top sectors including transport, storage, communications and chemicals and pharmaceutical. Domestic investment topped Rp 34.8 trillion ($3.16 billion), primarily due to projects involving the paper and printing industry, the food industry and the metal, machinery and electronics industry. Realized FDI 2008 (Jan Nov) 12, , , , , , ,082.6 Economy grows by 6.1% y-o-y in Q3 The economy grew by 6.1% on a year-on-year basis in the third quarter of 2008, with 3.5% growth during the quarter with agriculture putting on the strongest growth at 6.7% during the quarter, according to figures released by the Central Bureau of Statistics (BPS). Without the contribution from the oil and gas sector, growth during the quarter was 3.7%. Trading, hotels and restaurants put on the second strongest level of growth per sector at 4.6%, transport and communications by 4.2%, while manufacturing grew by a surprising 3.2% to take fourth position. Services were the slowest sector with growth of 0.9%. The Business Tendency Index, based on a survey of 2,500 large and medium companies during the quarter, showed a continuing improvement in conditions over the second quarter of the year. All sectors showed improvement except mining, which experienced a slight fall. Top 10 realized FDI by Country Of origin in 2007 (in million USD) Country Singapore Investment Projects 3, South Korea Japan Taiwan Seychelles Mauritius Malaysia Australia Brazil Others , TOTAL 10,

7 Visit Indonesia Hole 8th Ria Bintan Golf Club (Nico Adam) RIAU ISLANDS The Beauty Of Nature Riau Islands Province has a determination to build its neighborhood into one of the central economy growth in Indonesia while still grasping their roots of culture, which are the foundations of the vast development. Tanjungpinang In the 16th Century, Tanjungpinang was a Malay Kingdom centralized at Penyengat Island. Today, Tanjungpinang is the capital of Riau Islands Province endowed with fascinating tourist attractions of historical heritages, art and culture as well as natural and marine destinations. With total area of sq.km, the tropical city is strategically situated at the borders of neighboring countries of Singapore and Malaysia. Tanjungpinang has not only reserved the Moslems great treasures but also other religions and beliefs. In Senggarang, we may found Buddhist Temples, which reflect harmonious living environment, although Islam is the predominant religion in the area. The population has become culturally and ethnically diverse. One of the areas in Tanjungpinang has also been renowned as a China Town,where about 99% of its community is from Chinese ethnic. This City has International Ferry Passengers Terminals, serving destinations to Singapore and Malaysia with 45 minutes ferry rides from Sri Bintan Pura Tanjungpinang Terminal or Bandar Bentan Telani (BBT) at Lagoi, Bintan. Airport is also available to cater flights to Jakarta from Kijang Airport since July Another tourist enticement is the varieties of art and cultural attractions in Tanjungpinang which is inclusive at the calendar of events such as Dragon and Sailing Boat Race, Jong, Canoeing, Traditional Diving and Traditional Dance Festival to introduce the flourishing Malay traditions as well as to attract more foreign visitors. 7

8 Nirwana Hotel & Resort, one of many place to stay in Bintan (Nico Adam) BINTAN RESORT The City can wait... With the metropolitan Singapore so close by, shopping, entertainment and urban commercialism are easily accessible. Therefore, as they say you can have the best of two worlds on a visit to Bintan Resorts the city and the resorts. 8 Bintan Resorts is located on the largest of Indonesia s enchanting Riau islands in the South China Sea. Experience endless beaches, a wide variety of international-class resorts, and a refreshing host of tropical holiday activities. If location, as they say, is everything, then sitting at the economic hub of Asia is a precious pearl. The largest and most significant island in the Riau Archipelago of Indonesia, Bintan is a mere 45 kilometers from Singapore. Eighty international carriers fly into Singapore s Changi Airport with access to 50 countries and over 180 cities in the world. A cumulative population of 2 billion people lives within 7-hours of flying time to Singapore, and Bintan is just 55-minutes away by ferry from Singapore. Along its 103-km northern coastline of Bintan Island, its lies Bintan Resorts. Here, you will find endless beaches, secluded coves, lush greeneries, azure waters and year-round sunshine. Unprecedented in its size and scale of development, Bintan Resorts is by far the single largest master planned resort development in Asia. World Class Infrastructure & Sustainable Environment To help you invest in Bintan Resorts, the government has invested over S$200 million in infrastructure and support services. Their excellent infrastructure facilities are built with international standards and have paved the way for the development of investor projects. Infrastructure for the initial phase is already in place, and is built taking into account the needs of developers of individual projects. The infrastructure will constantly be upgraded to support all future developments. At Bintan Resorts, they are committed to the fact that long term success of the Resorts rests

9 TOURISM on sound planning and proper execution. Integrated master plan, land use plans, design and development guidelines and environmental protection are the result of a well coordinated approach towards a sustainable development. It is no wonder that Bintan Resorts has been invited by World Bank to deliver conference papers on environmentally sustainable development. Bintan Resorts has also been on PATA s task force to advise other regional resort destinations a testimony to our commitment and international recognition. Support of Two Governments Many resort developments enjoy government backing but how many can boast of two? Bintan Resorts is indeed in an enviable position. It can capitalize not just on the complementary strengths of both Singapore and Indonesia, but also on the committed support of the two governments, at the very highest level. In 1990, Indonesia and Singapore embarked on a joint programme to promote natural resources and its highly competitive labor costs coupled with Singapore s development and management expertise. Bintan Resorts is also jointly marketed around the world by the tourism promotion boards of both countries. The result of all of this is a stable and secure investment environment. But that s not all. Experienced Management To help the investors, Bintan Resorts facilitates dealings with the various governmental authorities in Indonesia on matters such as submission of building plans and obtaining Banyan Tree Resort, a romantic places for enjoying honeymoon (Top and Left), Sea shell as a favourite sea food (right) permits. They will assist you through the approval process and this saves investors much time and effort in understanding the government procedures. Investors can also contact the Indonesian Investment Coordinating Board (BKPM)to find out more on foreign direct investment in Indonesia. For more Informations please contact Indonesian Embassy Abu Dhabi 9

10 TOURISM Govt optimistic tourist arrivals to reach 10 millions in 2009 The government said it is optimistic the number of foreign tourists visiting Indonesia next year will reach 10 million with foreign exchange earnings estimated at US$10 billion. We hope the condition will be getting more stable so that the tourism sector will contribute more to the country s foreign exchange earnings, Secretary General of the Culture and Tourism Ministry Wardiyatmo said at the weekend. To achieve the target of 10 million tourist arrivals the government must work hard because of tight competition among ASEAN member states amid the current global financial crisis. The ministry has earlier set the target of tourist arrivals for 2009 at 7.1 million, an increase of the targeted 6.4 million tourist arrivals for this year. Bali remains secure after bomber s execution Security conditions in Bali, the scene of the terrorist attack, which killed 202 people in 2002, have remained conducive and free of threats after the execution of Bali bombers Amrozi et al, Bali Governor Made Mangku Pastika said. The people of Bali gave a proportional response to the execution of the three deathrow convicts, the governor said during a function to observe the 63rd Heroes Day here on Monday. He said with the execution of Amrozi, Mukhlas alias Ali Ghufron and Imam Samudra, Indonesia had shown that its system to administer justice was working. Pastika hoped the conducive security conditions in Bali would be maintained, saying the people of Bali should remain vigilant and sensitive to any unusual happenings in their respective surroundings. Meanwhile, Bali tourism observer I Nyoman Ruhta Adhy hoped that the execution of Amrozi et al would restore the positive image of Bali s tourism in the future. Before the Bali bombers execution, a number of 10 countries, among others Australia, had advised their citizens not to visit Bali, he said. Another Bali tourism observer, I Nyoman Darma Putra, said the world community, including the Australian public, would soon forget the executions of Amrozi at all. The world, including the Australian people who lost 88 of their compatriots in the bombing, will soon forget the execution so that Bali is expected to be visited by many holiday makers during this year s Christmas season and the 2009 New Year, he said. Bali dancer in action (Paolo Luigi G) He thanked God for the fact that the execution was done eight weeks before the peak of the holiday season at year-end. I think, Bali will be very busy receiving an increased number of foreign tourists because a few days from now the public will have forgotten the execution, he added. Putra, who is the author of Tourism, Development and Terrorism in Bali said in the next few days, Indonesia, particularly Bali, would be completely safe from terrorist attacks.

11 EXHIBITION Exhibition and Promotion Event International Furniture & Craft Fair Indonesia Reasons why you should visit IFFINA of March 2009 EXPLORE THE HIDDEN BEAUTY OF INDONESIA Discover the hidden beauty & top quality of Indonesian product that comes from a huge number of craftsmen from all over Indonesia WORLDWIDE BUYERS PARTICIPATION This is a must visit event for domestic and international buyers, last year attract international buyers from more than 87 countries MEET THE CHARM HOSPITALITY OF INDONESIA Indonesian people is well known throughout the world as the most charm and friendly people that will provides you with countless destinations to cater around STRONG SUPPORT FROM ASSOCIATION AND GOVERNMENT AGENCIES IFFINA 2008 is organized by the ASMINDO (Furniture Association) and in close cooperation and fully supported by the Government and Government Agencies of Republic of Indonesia. WIDE RANGE OF WORLD CLASS FURNITURE A golden opportunity to observe a wide range of products and, at the same time, to meet with Indonesia s producers and exporters EXCELLENT PRODUCT MIX IFFINA 2008 showcases an excellent product mix between furniture and handicraft from all regions in Indonesia STRATEGICALLY LOCATED AND CONNECTED TO WORLD MARKET Strategically located and connected to world markets by an excellent communication and transportation network and often regarded as a bridge between Asia and Australia and as a gate from the Indian Ocean to the Pacific Ocean Rattan furniture become a classic and luxurious product (Nico Adam) 11

12 Gallery Indonesian Economic Expert Prof. Dr. Mudrajad Kuncoro along with the Ambassador of the Republic of Indonesia, H.E. Wahid Supriyadi have a meeting with President of the Abu Dhabi Chamber of Comerce and Industry, H.E. Salah Salem bin Omair AI Shamsi. (19/11/2008) Ambassador, H.E. Wahid Supriyadi made a courtesy call to Ruler of Ajman, H.H. Sheikh Humaid bin Rashid Al Nuaimi. (5/11/2008) Finance Minister of the Republic of Indonesia, H.E. Sri Mulyani along with the Ambassador on the occasion of business meeting with UAE businessman. (6/10/2008) UAE Finance Minister, H.E. Obaid Humaid Al Tayer received Indonesian delegation lead by Finance Minister of the Republic of Indonesia, H.E. Sri Mulyani. (6/10/2008) Indonesian Minister of Public Works, H.E. Djoko Kirmanto along with the Presidential Special Envoy To the Middle East, H.E. Alwi Shihab and the delegation visit Abu Dhabi Chamber of Commerce and Industry (ADCCI), received by Board Member of ADCCI, H.E Khalfan Saeed Jumaa Al Kaabi and the Director General of ADCCI, Mr. Ahmad Hassan AI Mansouri. (24/11/2008) 12 Indonesian Ambassador, H.E. Wahid Supriyadi with the Indonesian businessman, Mr. Yogi on the opening ceremony of Snow White New Branch store in Ras Al Khaimah. (29/11/2008)