Pelindo II to develop the road in Priok port

State port operator PT Pelindo II prepares a Rp 84 billion budget to develop a 5-km road extension in Tanjung Priok port, as part of the company’s port inner road improvement program. Pelindo II also plans to extend the port’s main road from three lanes to five lanes, and connect the inner and outer toll roads. This is aimed to reduce the congestion inside and outside the port.
Source: PA Asia - Public Affairs and CSR from Bisnis Indonesia, p.m3, 12 February 2009.

Seven companies are authorized to certify organic food

The National Accreditation Committee (KAN) authorizes seven companies to conduct certification on organic food products, making each of them as an Organic Food Certification Agency (LSPO). They are LSPO Sucofindo, LSPO Mutu Agung Lestari, LSPO Inofice, LSPO BIOCert Indonesia, LSPO Sumatera Barat, LSPO LeSOS and LSPO Persada. Currently, there are only 10 to 15 organic food products that have obtained the Indonesian National Standard (SNI) certificate.
Source: PA Asia - Public Affairs and CSR from Koran Jakarta, p.15, 30 January 2009.

Bojonegara Port is damaged

The Bojonegara International Port in Serang Regency, Banten province, has been left to crumble. Since the construction was started in 2003, the port has never been operational although it was originally planned to start operating in 2007. The government has spent Rp 100 billion for the construction. According to the Banten port administrator office, the port’s current condition is unsuitable for an international port and its location does not fulfill the shipping safety standards.
Source: PA Asia - Public Affairs and CSR from Kompas, p.27, 30 January 2009.

Government to maintain fuel prices during 2009

The government will likely maintain the latest prices of Premium gasoline, diesel and kerosene until the end of 2009, the president says. According to him, the current prices are “appropriate” and “in accordance” with the projected movement of global crude oil prices and with the composition of the 2009 state budget. The government has cut the fuel price three times in the past few months following falls in global crude oil prices.
Source: PA Asia - Public Affairs and CSR from the Jakarta Post, p. 13, 3 February 2009

Demand for palm oil export is improved

Export of crude palm oil (CPO) starting from early this year is predicted to keep increasing since the price and the demand are still good. According to the Head of the Marketing Department at the Indonesian Exporter Businessmen Association (Gapki), Susanto, the biggest increase for CPO export is triggered by the large demands from China and India. He added that the CPO export to Europe is declining due to the global economic crisis.
Source: PA Asia - Public Affairs and CSR from Bisnis Indonesia, p.4, 4 February 2009

Electricity crisis in Ambon is getting worse

The electricity crisis in Ambon, Maluku province is getting worse due to damaged power generators. Rotating outage is done twice or thrice a day for 3-5 hours, hampering the economic activities in the city. According to the regional branch of the state electricity company (PLN), the peak load in Ambon is around 28-32 MW and the installed capacity is 37 MW
Source: PA Asia - Public Affairs and CSR from Kompas, p.22, 5 February 2009

Indonesia cuts interest rate as domestic demand wanes

Indonesia’s central bank cut its benchmark interest rate by half a percentage point Wednesday to 8.25%, and hinted that another reduction is likely to aid the flagging economy as inflation eases. The latest inflation data indicate waning demand as domestic consumers feel the impact of the global slowdown. The government expects growth to slow to 5% this year from an estimated 6% in 2008.
Source: PA Asia - Public Affairs and CSR from the Wall Street Journal, p.8, 5 February 2009