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					                              Indonesia News
Volume II – July 2007

                                                                           TRADEXPO Indonesia
                                                                       The 22nd National Merchandise
                                                                           and Commodity Show
                                                                    Extensive Choice of Quality Products with Added Value
                                                                    At Jakarta Fairground, Kemayoran, Jakarta – Indonesia
                                                                    With a new spirit for offering Indonesia’s best for
                                                                    the world, Trade Expo Indonesia is designed to
                                                                     accommodate multiplicity of products with the
                                                                    highest craftmanship, advanced technology and
                                                                                    competitive price

                          Make Your Visit Now!
          PATA Travel Mart 2007
                                                                    Returning sellers are rewarded with loyalty discounts of up to
    September 25-28 at Bali International
                                                                    15% on space costs, as well as priority booth locations. PTM07
  Convention Centre (BICC), Bali, Indonesia                         in Bali promises to reward everyone who is serious about Asia
     As Asia Pacific travel and tourism grows,                      Pacific travel and tourism:
            so does PATA Travel Mart!
                                                                    * More scheduled business appointments
The Pacific Asia Travel Association (PATA) invites you to join us   * Additional onsite networking opportunities
for a bigger, better PATA Travel Mart 2007 (PTM07) in Bali,         * An improved buyer-seller breakfast meet
“Island of Peace” and “Island of the Gods”.
                                                                                       * Insightful educational workshops on
Asia Pacific continues to enjoy rock solid
                                                                                          exciting emerging markets
year-to-date growth in arrivals of about
                                                                                       * Newsworthy media sessions and PR
5% (so far) in 2006. It is no surprise
therefore to find Asia Pacific’s premier
                                                                                       * A chance to rediscover Bali and
business-to-business travel trade event,
PATA Travel Mart, growing in tandem with
the region.
                                                                                       Join the three full days of serious business-
PTM06 in Hong Kong celebrated record                                                   to-business discussions and networking
numbers -- 417 buyer delegates met with                                                opportunities. Register now for PATA Travel
336 seller organisations, which occupied a                                             Mart 2007!
net floor area of 4,076 square meters.
Our stringent buyer qualifying procedures                                              Contact the Organizer:
have proven to deliver the right                                                       To download a registration application form
geographic and industry mix of quality                                                 for Buyer or Seller, please visit :
buyers from key and emerging markets.
This will be even further enhanced at                                        
                         Abdullah Cevdet Sokak No. 10, P.O. BOX 42, Cankaya 06680, Ankara, Turkey
                          Phone: (90-312) 4382190 - 92 Fax: (90-312) 4382193

                                                                           In cooperation with:

                                                            Ministry of       Ministry of Trade       Ministry of
                                                             Tourism                                   Industry
                                                          29 – 30 November, 1 – 2
                                                               December 2007

An extensive range of Indonesia’s abundant natural resources in the form of stones, precious metals and pearls

                                   Further Information, please contact:
                                   Mutumanikam Nusantara
                Menara Mulia Ground Floor, G3A, Jakarta 12930 – Indonesia
 Phone: (62 – 21) 52971581   Fax: (62 – 21) 52971583  Email:

Moody’s Investors Service is considering an upgrade in Indonesia’s sovereign debt rating, according to a Bloomberg News report
citing two analysts with the rating agency. Steven Hess and Thomas Byrne said Friday (13/7/07) that the government is handling
national finances well and has brought political stability to the country. Hess added that Indonesia had succeeded in reducing debt
significantly after it reached over 100% with the financial crisis a decade ago. “There is gradual improvement in Indonesia's credit
fundamentals,” he said. “We're fairly confident that government debt ratios are going to improve further.” Moody's raised
Indonesia's debt rating outlook to ``positive'' from ``stable'' in February and affirmed its long- term foreign currency debt rating of
B1, the fourth-highest non-investment grade. Fitch rates Indonesia's debt at BB-, the third highest non-investment grade, while
Standard & Poor's ranks Indonesia's dollar-denominated debt at BB- with a stable outlook.
In Jakarta, Finance Minister Sri Mulyani                                               The JSX composite index closed the week at
Indrawati said debt will have fallen to around                                         another new high, partly led by gains on Wall
35.6% of GDP at Rp1,325 trillion ($147.1                                               Street but also on expectations of stronger first-
billion) by the end of the year, slightly above                                        half earnings. The index closed the week at
the end-2006 level of Rp1,310 trillion, largely                                        2,301.601, while the rupiah was trading at
because of currency fluctuations.                                                      9,025/9,030 to the dollar late Friday.
Members of the senior management of state-owned Bank Negara Indonesia (BNI) were to set off on roadshows to sell a 26%
share in the bank expected to gross over $900 million in a secondary issue in August designed to tap the buoyant market. "Two
teams will head to New York, San Francisco, Boston, Singapore, Hongkong, Edinburgh and Frankfurt, starting on July 18," BNI
president director Sigit Pramono told Reuters.
In Washington, a joint study by the World                                             needs. "Indonesia is now less vulnerable, and
Bank and the Indonesian government was                                                stronger than before. Indonesia finds itself in a
released on Tuesday, stating that Indonesia                                           situation of fiscal strength," said Jim Adams, the
is currently seeing its largest increase in                                           World Bank's vice president for East Asia and
development spending in three decades. It                                             Pacific, who launched the report. "The country is
said a sharp reduction in fuel subsidies in                                           moving in the right direction, with challenges in
2005, declining debt service payments and                                             governance and improving public services. The
increasing revenues have provided an                                                  country is now in a position to use this fiscal
additional $15 billion - of the total national                                        strength to address those challenges more
budget of $70 billion - for critical development                                      effectively."
The report notes that while education now tops budgetary spending at 17%, higher investments in the sector would be highly
beneficial. Payment on debt is strongly down from number 1 in 2001 (25%) to fifth position with 11% of spending. “Infrastructure . .
. has only recovered very modestly to 11% from its post-crisis downturn,” says the report. The Coordinating Ministry of Economic
Affairs stated that 21 out of 28 reform actions due in June had been completed and the remaining seven were underway.
Coordinating Minister for Economy Boediono reported to the president that another 4 actions had been completed ahead of time, a
statement said. The completed steps included improvement in investment regulations, financial sector reform, infrastructure
development acceleration, and empowerment of micro, small and medium enterprises. Steps had also been taken in
entrepreneurial and human resources development.
FDI rose 17% to $4.1 billion in the first half of                                     trillion ($3.15 bln) in January to June from the
the year compared to the same period a year                                           same period last year. Foreign investment
ago, data from the state investment agency                                            approvals increased a little more than 300% to
BKPM showed on Monday (9/7/07). The agency                                            $23.98 billion. "Bureaucratic hurdles in getting
did not give reasons, but analysts say an anti-                                       permits have eased. Investing here is no longer
graft campaign has helped boost investment in                                         as difficult as in previous years, that's why actual
the country, Reuters reported. The data also                                          investment increased," said economist Juniman
showed actual domestic investment rose more            than 150% to Rp 28.37          of Bank Internasional Indonesia (BII).
To help develop the renewable energy sector and the use of biofuels, the government is considering providing various incentives,
including value-added tax (VAT) reductions for business players, and excise duty cuts for biofuel users. Evita H. Legowo, first secretary
of the government-sanctioned National Biofuel Development Committee, said Tuesday (10/7/07) that the incentives were currently being
discussed with tax officials at the Finance Ministry. "We hope the incentives will be in place by the end of the year," Legowo told The
Jakarta Post. On plans to introduce VAT cuts, Evita added that the committee had submitted two proposals, one that the government
reduce VAT by 50% to 5%, and the second the complete elimination of the tax. "We are still debating this," she said, adding that the
reduction would offer advantages to renewable energy promoters in purchasing feedstock and equipment. The government was also
considering halving the excise tax of 5% currently imposed on fuel used by cars, trucks and motorbikes to 2.5% in the case of biofuels.
The proposed incentives -- which will be implemented by way of government regulation if approved -- are based on the provisions of the
energy bill currently being deliberated by the House of Representatives. The bill, which is expected to be enacted next week, stresses the
need to promote the utilization of renewable energy. Aside from the proposed incentives, President Susilo Bambang Yudhoyono has
issued a regulation that provides corporate income tax breaks for firms involved in the biofuel business. The presidential regulation was
issued after the government signed 58 deals last January worth $12.4 billion with a number of big energy firms, including Chinese oil
giant CNOOC and Malaysian oil company Genting, for the development of the sector.

LIGNA Furniture was established in 1975 and has since then become the leading furniture manufacturer in Indonesia
            specializing in living room, bed room and dinning sets from wood, rattan as well as panel.
                                          Contact the Company :
                                         Hadinata Brothers & Co.
                Address: Jln. Tapos Km. 1 P.O. Box 23, Cibinong 16901, Bogor – INDONESIA
             Phone: (00–62–21) 87902970, 8755915, 8755925, 8752151 Fax: (00–62–21) 8755911
                                             PROJECT PROFILE: CASHEW NUT
General                                                                                        The purchasing price of land is between Rp.
South Sulawesi Province is well known of the                                                   40,000,000 and Rp. 50,000,000 per hectare.
producing and exporting cashew nuts. Both
                                                                                               Market Prospect
land and climate conditions are suitable for
                                                                                               Cashew nuts which are produced in South
cashew fruit plantation. The plantation area is
                                                                                               Sulawesi are mostly dominated by those
widely scattered over regencies of the
                                                                                               having an export quality. Seventy five percent
                                                                                               of cashew nuts produced in South Sulawesi
Cashew nuts production is supported by the
                                                                                               correspond to export quality. Therefore,
provincial/regency government to be one of
                                                                                               about 65% of cashew nuts produced in this
the key commodities. The potential location is
                                                                                               Province have been exported to overseas
in Maros Regency. Maros Regency is
suitable for cashew fruit plantation for
                                                                                               Market demand from overseas markets is still
investment. This Regency is recommended
                                                                                               strong enough so the production of cashew
to be a potential location because of its light
                                                                                               nuts can be expanded. To expand the
of land availability and an easy access to
                                                                                               cashew nut plantation investment, the mid
Makassar as the gate of South Sulawesi
                                                                                               scale enterprise may be required to invest
Province. According to the regional
                                                                                               around US$ 650,000 for construction of
development plan of the Regency, the area
                                                                                               production facilities and machineries, and
of Tanralili district in Maros Regency is
                                                                                               about US$ 1,100,000 to develop a 500 ha
reported to be suitable for cashew nuts
                                                                                               nucleus plantation area.
                                                                    A partnership scheme for cashew nut plantation and cultivation can be
                                                                    developed with farmer in Maros Regency.
                                                                    To support this plantation, plenty of landless farmers are available for
                                                                    cashew fruit plantation as unskilled labor. The minimum wage of
                                                                    unskilled labor is Rp. 15,000 per day and the minimum wage of the
                                                                    province is Rp. 415,000: monthly.
Business Facilities Information
a. Potential location is having a good accessibility to the trade
   centre such as Makassar and the gates such as the Makasar
   Harbor or Airport. The distance to the Harbor and Airport from
   the centre of the Maros Regency is 15 km and 30 km
b. Road condition connecting the Regency and Makassar is fairly
c. Five types of power plant in South Sulawesi consisting of 187
   units of diesel with 285,200 KW, two units of PLTU with 25,000
   KW, six units of PLTA with 127,710 KW, one unit of PLTD with
   92,000 KW, and five units of PLTS with 125,920 KW.
d. Telecommunication network is extended to the villages in
   Maros Regency. There are also cellular services available from
   Telkomsel and Satelindo.
e. Clean water is available from PAM in Maros Regency.              f. All areas of the Province are electrified with grid network of PLN.

     Important Address:
Promotion & Investment Board
  – South Sulawesi Province
  Jln. Urip Sumoharjo No. 269,
 Sulawesi Selatan – Indonesia
Phone: (62-411) 453614, 453752

                          Competitive Source: Indonesian Spices
                                               World has known
                                              Indonesia for long
                                               that it is home to
                                                spices. It is no
                                            surprise that over the
                                             centuries, European
                                               adventurers and
                                             traders from Spain,
                                               the Netherlands,
                                              Portugal, and The
                                               United Kingdom,
                                            dared to sacrifice life
                                            and wealth to obtain
                                             spices from its best
                                               origin Indonesia.
To date, Indonesia still has collection of the world’s best and mostly various spices like black and white
pepper, chili, ginger, cinnamon, nutmeg, cardamom, and tobacco.

Origin of Indonesian Spices:
• Black and white pepper: Maluku,
  Lampung, East Kalimantan and
  Bangka Belitung;
• Cinnamon: Jambi & West Sumatera;
• Tobacco: North Sumatera, Central
  Java, and East Java;
• Nutmeg: Maluku.

List of Indonesian Spices Producers:
Address: Jl. Ir. Sutami Km. 7, Bandar Lampung, Indonesia
Telephone: (62-721) 350135 Fax: (62-721) 350134 Email:
Contact Persons: Mr. Aman & Mr. Simon Susilo

Address: Jl. Sikatan No. 23, Surabaya 60189, Jawa Timur, Indonesia
Telephone: (62-31) 3522991, 3525606 Fax: (62-31) 3534027, 3553446           E-mail:
Contact Persons: Isnandar Lilananda

● Company Name: CV. DEWI SRI MADRIM
Address: Pontianak Mail Blok B No. 7, Pontianak, Kalimantan Barat, Indonesia
Telephone: (62-561) 767911, 744150 Fax: (62-561) 767910 E-mail:
Contact Persons: Sri Astuti Buchari

Address: Graha Cipta Building Lt 1, Jl. D.I. Panjaitan No. 40, Jakarta 13350, Indonesia
Telephone: (62-21) 8193663 Fax: (62-21) 8563464 E-mail:
Contact Persons: Drs. Samsudin & Rasmani Niah

● Company Name: PT. NEKA BOGA PERISA
Address: Jl. Ir. Sutami Km. 9, Tanjung Bintang, Lampung Selatan, Lampung, Indonesia
Telephone: (62-721) 351091 Fax: (62-721) 351089 E-mail:
Contact Persons: Henky Harjo & M. Bambang Hartono

● Company Name: CV. RASDI & CO
Address: Jl. Adinegoro No. 38, Simpang Lalang, Padang, Sumatera Barat, Indonesia
Telephone: (62-751) 480434 Fax: (62-751) 481492 E-mail:
Website:      Contact Persons: H. Ramal Saleh & M. Irsyad

Address: Jl. Kompos No. 110-A, Desa Puji Mulyo, Kecamatan Sunggal, Binjai 20351, Sumatera Utara,
Telephone: (62-61) 8454291-93 Fax: (62-61) 8454294 E-mail:,
Contact Persons: Suryo Pranoto & Tjia Bie Hoei

Address: Jl. Ir. Sutami, Way Laga, Panjang, Bandar Lampung, Lampung, Indonesia
Telephone: (62-721) 350321, 350421 Fax: (62-721) 351221
Contact Persons: Budiman Kencana Putra

Address: Wisma Eka Jiwa Ruko No. 3, Jl. Mangga Dua Raya Blok N, Jakarta 10730, Indonesia
Telephone: (62-21) 6257168 Fax: (62-21) 6257140 E-mail:
Contact Persons: Mustakim Haryanto Widjaja & Teddy Wijaya

● Company Name: PT. LATRANSA CITRA
Address: Shangrila Indah Unit I/83, Ciledug Raya, Jakarta 12270
Telephone: (62-21) 7340772-3 Fax: (62-21) 7340845 E-mail:
Contact Persons: Farida Joelhaswin & Joelhaswin

● Company Name: CV. PINANG MAS
Address: Jl. Bypass Lama KM 12 Batung Tebal, Padang, Sumatera Barat 25223, Indonesia
Telephone: (62-71) 765999 Fax: (62-71) 64846 E-mail:
Contact Persons: Novian Halim & William Halim

  Bali, the tropical paradise, is a main                                                   Bali is a popular tourist destination
  tourist destination. Bali's rich cultural                                                 known for its natural attractions,
    heritage has been explored and                                                             perfect climate and relaxed
exposed by many Western visitors since                                                     atmosphere, this island of flowers,
 1930s. Among these Westerners were                                                          temples and friendly people is
   Walter Spies, Rudolf Bonnet, Carlie                                                     considered a real gem by travelers
    Chaplin and Noël Coward. These                                                             worldwide. Travel + Leisure
  Westerners contributed largely to the                                                    magazine's 12th annual list of the
  development of paintings and arts in                                                    world's best awards followed a poll of
 general. Furthermore, they popularized                                                       almost 19,000 conducted by
                    Bali.                                                                 researcher Harris Interactive named
                                                                                             Bali as the world's best island.
                                                 Volcanic lakes, white sandy
                                                   beaches, spectacular rice
                                                terraces and the splendour of
                                                 ancient temples and palaces
                                                have enriched Bali. Here you
                                                  can find many water sports
                                                 activities (snorkelling, diving,
                                                 kayaking, etc.), adventurous
                                                    sports (hiking, climbing,
                                                    trekking, etc.) and other
                                                        exciting activities.
   Regular temple ceremonies,                                     The Balinese have a natural            Flowers in Bali are
     dance performances and                                           capacity for absorbing       everywhere. You'll see (and
   wedding ceremonies can be                                      different cultural elements to       smell the fragrance of)
   found easily in Bali. Balinese                                 blend them with their own to        hibiscus, bougainvillea,
  festivals, holidays and special                                     produce dynamic new            jasmine, and water lilies.
  celebrations occur all the time.                                hybrids. Over the years Bali      Magnolia, frangipani, and a
    Yet Bali has more than just                                     has been the recipient of       variety of orchids are found
  cultural heritage, travellers will                                  numerous influences,            in many front yards and
 find many enchanting places to                                    Chinese, Buddhist, Indian,      gardens, along roads, and in
    explore. Artistically Bali is a                                   Hindu, and Javanese.                temple grounds.
    melting pot of cultures and
             traditions.             For centuries artists and
                                     craftsmen in Bali worked
                                      under the patronage of
                                       the priests and ruling
                                        classes, decorating
                                       palaces and temples.
                                      The artists themselves
                                     were anonymous, never                                           Dancers wear blossoms in
                                      signing their work and                                         their crowns, and even the
                                        usually living close                                       flower behind the ear of your
                                         together in artists'                                         waitress seems natural in
                                             'villages'.                                                        Bali.
                                              Bali Tourist Information Center
 Information materials in the forms of brochures, booklets and leaf-lets are available free of charge at Tourist Information
                Centers as follows: Please note these departments will not send out information by mail.
                                 ● Ngurah Rai International Airport, Tuban, Denpasar 80361
                                ● Kuta Art Market, Jalan Bakung Sari, Kuta, Denpasar 80361
                     ● Bina Wisata Ubud, Gianyar 80571. (Next to the villages head's office of Ubud)
                   ● Government Tourist Information Center, Jalan Bakung Sari, Kuta, Denpasar 80361
               ● Bali Government Tourism Office. Jalan S. Parman, Niti Mandala Renon - Denpasar 80235
  Travel Agents in Indonesia offering Bali Package Looking for Partnership with Travel Agents from Turkey
                     NADA KUMARA TOUR                                     SATRIAVI - AEROWISATA HOUSE
        Address: Jl. Sunia Negara, Sakah Permai No.17,                       Address: Jl. Prapatan No. 32,
        Pemogan – Denpasar 80221, Bali, INDONESIA                            Jakarta 10410 – INDONESIA
          Phone: (00-62-361) 721617 / Fax: 724718                Phone: (00-62-21) 2310002, 2310872 Fax: 231 0003
               E-mail :                 E-mail: Web:
                        Abdullah Cevdet Sokak No. 10 (P.O.BOX 42) Cankaya 06680, Ankara, Turkey
                                      Phone (90-312) 438-2190 Fax (90-312) 438-2193