Indonesian Halal requirements meeting with LPPOM - MUI

Market Access Team on Agro-Food Products, a team coordinated by European Commission to Indonesia, has conducted a meeting took place on April 15, 2009 with the LPPOM-MUI, Institute for the Indonesian Council of Ulama who is responsible for the Halal Certifications in Indonesia. Summary, by Minna Piekkari, trade officer of the European Commission delegation to Indonesia and Brunei Darussalam, of the meeting's main discussion points are below:

• A new list of accredited Overseas Halal Certification Bodies, which are authorized to give a Halal certificate for ingredients/raw materials and meat products imported to Indonesia has been drafted by the MUI and will enter into force on 1st October 2009. The list is final and will be opened for revision after a period of two years (in 2011)
• The list of accepted Halal bodies in Europe has been reduced from before. The accepted bodies in mainland Europe are however authorised to give Halal certification to establishments from all European countries
• The Draft Halal Law is waiting for the time after Elections to be processed by the Parliament
• International Training on the Halal Assurance System will take place in Bogor, Indonesia on 28 - 29 July 2009, directed to distributors, producers and suppliers involved with Halal products. MS companies / importers / distributors are encouraged to participate.

CSR remains mandatory for firms, court rules

CSR will remain mandatory for companies, after the Constitutional Court upheld a provision obliging such programs, dashing the interests of the business community. The latter, represented by several associations, argued that CSR should be voluntary, depending on the size of the firms and in which sectors they operated, instead of mandatory as stipulated under the 2007 Law on Limited Liability Companies. The judges said it was important to make CSR mandatory as a way of getting companies to take part in rolling back environmental damage.
Source: PA Asia - Public Affairs and CSR from the Jakarta Post, 16 April, p.13

Investors see RI market as 3rd most optimistic

The Indonesian capital market has retained its position as the third most optimistic market in the Asia-Pacific region in the first quarter of this year after India and China, based on a survey released last week by the Dutch financial services giant ING. The ongoing optimism is likely because investors felt that Indonesia’s economy was cushioned to an extent by high commodity prices and fuel prices correction, ING Securities Indonesia president director Robert Scholten said. He added the government’s quick response to the global crisis by managing the country’s economy well had also made investors more confident in Indonesia.
Source: PA Asia - Public Affairs and CSR from the Jakarta Post, 20 April, p.13

Registration Identity Number of Entrepreneur Providing Excisable Goods

Undertakings that run business activities as factory entrepreneur, warehouse entrepreneur, importer, distributor, or retails of excisable goods must hold the Registration Identity Number of Entrepreneur Providing Excisable Goods (NPPBKC-Nomor Pokok Pengusaha Barang Kena Cukai). The obligation of holding NPPBKC for distributor or retails only applies to distributor or retails of excisable goods in form of ethyl alcohol or beverages containing ethyl alcohol. Those undertakings must submit written application to the Head of Customs and Excise Office for the site-inspection. After obtaining the Minutes of Site-Inspection, the undertakings must submit written application to the Ministry of Finance to obtain NPPBKC. NPPBKC for the factory entrepreneur, warehouse entrepreneur and importer of excisable goods will be valid for period of those undertakings conduct their activities. NPPBKC for Distributor or Retails of Excisable Goods will be valid for 5 years and can be extended for the same period. (“Government Regulation No.72 of 2008 regarding Registration Identity Number of Entrepreneur providing Excisable Goods (November 10, 2008)”)

IFC promotes energy-saving projects for industries

The International Finance Corporation (IFC) has offered Indonesia’s palm oil and rice milling industries energy efficiency projects that could enable them to cut energy costs by 30% and reduce CO2 emissions to be cashed under the United Nations Framework Convention on Climate Change (UNFCCC) scheme. The IFC will provide technical expertise on energy efficiency and cooperate with other banks to arrange financing for the projects. The IFC also has targeted to arrange a total financing of $35 million by banks for the development of the energy programs.
Source: The Jakarta Post, 14 April, p.2

Coal industry to slow down

The performance of the coal mining industry in 2009 is predicted to slow down, as signaled by the revisions done by a number of companies for their investment and production. One of them is Berau Coal, who will cut its capital expenditure this year up to 65%. Such consequence has to be taken related with the declining commodity price in the international market – the current price is US$ 63-70/ton, while in July 2008 the price was US$ 190/ton – and the stagnant demand from abroad.
Source: PA Asia - Public Affairs and CSR from Bisnis Indonesia, 15 April, p.4

PLN to set power purchase prices

State power company PT PLN holds the mandate to set power purchase prices to buy electricity produced by its business partners, aiming at flexibility amid the dynamics of economic circumstances, an official said, The Jakarta Post reported.
The Director General for Electricity and Energy Utilization at the Energy and Mineral Resources Ministry, J. Purwono, said that the rights were based on the Energy and Mineral Resources Ministry’s regulation, the Guideline for Power Purchase Prices for Cooperatives or other Independent Power Producers (IPPs), enacted last week.
Purwono said purchase prices were determined by various indicators, including the type of power plants, their locations and their capacities; macro-economic indicators; the level of local content; fuel prices; quality; and foreign exchange rates.
“This is the reason why PLN can set different prices for different business deals,” he said. Purwono added that PLN should first receive the government’s agreement before implementing prices.
He said that the government will play a bigger role in determining the parameters for power purchase prices. Earlier this year the government announced it would set the standard for power purchase prices at $0.58 cents to $0.8 cents per KWH. The IPP winner and the power purchase price could be established through several mechanisms, including open bidding, direct appointment or direct selection. IPPs are expected to generate about 40% of PLN’s second-phase 10,000 MW power program, expected to start adding capacity in 2014. In the first-phase program, launched in 2006 to meet the increasing demand for electricity nationwide, especially for the Java-Bali system, all power plants belong to PLN.
Source: www.ekon.go.id