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d-8 newsletter volume 24 november 2009 |
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Thursday, 26 November 2009Press Digest from media in D-8 Countries:
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Bangladesh to hold workshop on IranÃs Kiarostami
Tehran Times Art Desk
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TEHRAN -- BangladeshÃs Moviyana Film Society has organized a workshop on the prominent Iranian filmmaker Abbas Kiarostami.
The three-day workshop will open on December 24 in the capital Dhaka, the New Nation, BangladeshÃs Independent News Source, released the news on Sunday.
The workshop, directed by prominent Bangladesh filmmaker Tareque Masud, is arranged to focus on the life and films of Kiarostami, discussing his works to include films, photography and poetry.
Abbas Kiarostami is an internationally acclaimed Iranian film director, screenwriter and film producer, who has been involved in over forty films, including shorts and documentaries.
He is also a poet, photographer, painter, illustrator, and graphic designer
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54,000 Bangladesh pilgrims arrive for Haj
By Shahid Ali Khan
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RIYADH ñ More than 54,000 Bangladeshi pilgrims have already arrived in Saudi Arabia to perform this yearÃs Haj, an increase of 8,000 over last year. This is according to Muhammad Alamgeer, Haj Consul, Bangladesh Consulate General in Jeddah.
Alamgeer said an 11-member Haj delegation, headed by Bangladesh Religious Affairs Minister Muhammad Shahjahan Miah, arrived in Jeddah Friday.
The delegation is currently visiting Madina to inspect the Haj arrangements there. A 60-member medical team, including 30 doctors, will care for the Bangladeshi pilgrims.
No swine flu vaccine is available in Bangladesh so pilgrims are getting shots for this and other diseases, said Alamgeer.
Of the total number of pilgrims, 8,220 are doing so under the government quota. The rest are travelling with private tour operators.
The expenses for pilgrims coming with private tour operators ranges from Bangladeshi taka 200,000 to 500,000 while those organized by the government pay Bangladeshi taka 220,000, he said. ñ SG
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Sheikh Hasina chosen for Indira Gandhi Peace Prize
For her outstanding contribution to promotion of democracy and pluralism
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NEW DELHI: Bangladesh Prime Minister Sheikh Hasina has been chosen for the prestigious Indira Gandhi Prize for Peace, Disarmament and Development this year.
The selection was made by an international jury, chaired by Prime Minister Manmohan Singh, the Indira Gandhi Memorial Trust said in a statement on Thursday.
Ms. Hasina was chosen for her ìoutstanding contribution to the promotion of democracy and pluralism, her determined drive to alleviate poverty and secure social and economic justice for her people through inclusive and sustainable development, and her consistent commitment to peace,î the statement said.
Ms. Hasina ìpromoted peace by resolving a long-standing insurgency [problem] in Bangladesh by concluding the Chittagong Hill Tracts Peace Accord. Her global commitment to peace was manifested by her initiative that resulted in the adoption of the first-ever resolution of the United Nations General Assembly on the Culture and Peace,î it said.
The assassination of her father, Bangabandhu Sheikh Mujibur Rehman, and other members of her family in 1975 transformed her life and ìthe political landscape of Bangladesh. A number of attempts on her life and subsequent imprisonment only strengthened her resolve to restore democracy, peace and political stability in her country,î the statement said.
The award, carrying a cash prize of Rs.25 lakh and a citation, will be presented to her at a function to be held at a later date. Ms. Hasina is to visit India next month and is likely to sign a couple of landmark agreements that would strengthen ties between New Delhi and Dhaka.
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Bangladesh population now 162.2m
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BangladeshÃs present population is 162.2 million (16.22 crore) and may rise to 222.5 million by 2050 at the current growth rate of 1.4 per cent, according to the latest count by UN agency UNFPA, reports UNB.
Combined with this demographic factor of overpopulation, climate change may reverse the progress on the UN-set Millennium Development Goals through the climate-driven water scarcity, intense tropical storms, floods, loss of glacial meltwater for irrigated agriculture, changes in food availability and possible health crisis, the UNFPA forewarned in its report.
The 2009 State of Population Report entitled ëFacing a changing world: women, population and climateà was published Wednesday in Dhaka and in all the capitals of the world.
UNFPA Representative Arthur Erken, Executive Director of Bangladesh Center for Advanced Studies Dr Atiq Rahman, DGFP Director General Mohammad Abdul Qayyum, former adviser to caretaker government Rasheda K Chowdhury and Health and Family Welfare Ministry Secretary Shaikh Altaf Ali were present on the occasion.
The United Nations Population Fund report says, "Family planning, reproductive healthcare and gender relations could influence the future course of climate change and affect how humanity adapts to rising seas, worsening storms and severe droughts."
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ADB approves USD 57.5 million to India, Nepal, Bangladesh to develop major tourism sites
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By TBM Staff | Mumbai
According to a PTI report, the Asian Development Bank (ADB) has approved USD 57.5 million (around Rs 265.6 crore) in grants and loans to India, Nepal and Bangladesh to develop major tourism sites, including Buddhist sites under the South Asia Tourism Infrastructure Development Project. The Project will improve the existing infrastructure and services and develop new ones in key tourism sites in the three countries. The project is expected to be completed by September 2014.
Besides the ADB support, state governments of these countries and the OPEC (Organisation of Petroleum Exporting Countries) Fund for International Development, will provide the remaining project cost of USD 89.5 million (around Rs 413.5 crore). While India will receive a loan of USD 20 million equivalent from ADBÃs capital resources, Bangladesh will get a USD 12 million on ADF (Asian Development Fund) loan, and Nepal will get USD 12.75 million in grants and USD 12.75 million as loan equivalent, both from ADBÃs concessional ADF.
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IranÃs president calls for expansion of trade ties with Turkey
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TEHRAN, Nov. 20 (Xinhua) -- Iranian President Mahmoud Ahmadinejad on Friday called for the expansion of trade ties between Iran and Turkey, the official IRNA news agency reported.
"Iran and Turkey can be each otherÃs major trade partners," Ahmadinejad was quoted as saying at his meeting with visiting Turkish Foreign Minister Ahmet Davutoglu in the northwestern Iranian city of Tabriz.
The Iranian president also said that if Tehran-Ankara trade relations are well adjusted, they will secure mutual interests.
Conveying Turkish Prime Minister Recep Teyyip ErdoganÃs warm greetings to Ahmadinejad, Davutoglu said Tehran and Ankara can shape better two-way ties in the future by joint planning.
The two sides at the meeting also discussed bilateral and regional issues of mutual interest, IRNA reported, without elaborating.
During ErdoganÃs latest visit to Iran in late last month, both sides also expressed their willingness to enhance bilateral trade exchanges.
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IndonesiaÃs Lion Air to order 10-15 widebodies
FlightGlobal
Monday, November 23, 2009
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IndonesiaÃs Lion Air to order 10-15 widebodies
By Leithen Francis
IndonesiaÃs largest privately-owned carrier Lion Air plans to place an order for widebodies and wants first deliveries in 2011.
Lion plans to order 10-15 widebodies and is interested in Airbus A330-300s and Boeing 777-200ERs, says Lion Air president Rusdi Kirana.
The carrier wants first deliveries in 2011 and plans to use the aircraft in the day on busy domestic trunk routes and fly the aircraft at night to destinations in Asia, he says.
They aim to make a decision by the first quarter of next year, he adds.
Indonesian carriers are unable to operate domestically at night because of airport curfews. Rusdi says, for example, that Lion Air could operate a widebody at night from Bali Denpasar to Taipei and have passengers arrive in Bali in the morning.
He says Lion plans to have the widebodies in an all-economy configuration and compete on price.
Rusdi also says Indonesia has plenty of traffic rights available because at the moment "its only Garuda flying internationally" on longer routes.
Lion can succeed on longer international routes because it has the feeder traffic, he adds.
Earlier this month Lion launched services on the Jakarta-Jeddah route using two second-hand Boeing 747-400s that it bought.
Rusdi says its passenger load factor on the route is 90-100%.
LionÃs main fleet comprises of 26 Boeing 737-900ERs and it is adding one a month and plans to have a total of 30 by year-end, says Rusdi.
In addition, it has five Boeing MD-80s but these are used as stand-by aircraft and will be phased out mid next year, he says.
Lion has also signed a firm order for 15 ATR 72-500s with the first three aircraft due to arrive in December although an exact date has yet to be set, he adds.
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Topic: Economic revival gives MalaysiaÃs Najib a boost
The Straits Times (Singapore)
Saturday, November 21, 2009
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Economic revival gives Najib a boost
Hazlin Hassan, Malaysia Correspondent
Confidence goes up as pace of decline slows in the third quarter
KUALA LUMPUR: The Najib administration received a fillip yesterday
with new economic data showing that the Prime MinisterÃs moves to rev
up the economy are working.
Gross domestic product contracted 1.2 per cent in the third quarter
from a year earlier, shallower than the 2 per cent drop predicted by
most economists.
The economy shrank 6.2 per cent in the first quarter of the year, but
improved a bit in the second quarter by contracting 3.9 per cent.
While Malaysia is still in recession, things are looking up,
economists said.
ëIf the recovery momentum is maintained, positive growth is more
likely now in the fourth quarter,Ã said Mr Yeah Kim Leng, chief
economist at Malaysian ratings agency RAM.
Prime Minister Najib Razak in March announced a RM60 billion (S$25
billion) package to lift the sagging economy, and there is now
evidence that the plan is working. This was in addition to the RM7
billion stimulus package announced in November last year.
Central bank Governor Zeti Akhtar Aziz told a news conference
yesterday that domestic economic activity is gaining strength. The
construction sector grew by a strong 7.9 per cent in the third quarter
due to the implementation of construction projects under the stimulus
packages, she said.
The improving economy provides good news to Datuk Seri Najib and the
ruling Barisan Nasional (BN) coalition, amid recent concerns about
MalaysiaÃs loss of lustre to investors following reports of a shortage
of electrical and electronic engineers.
The Najib administration is helped further by a recent survey by
independent pollster Merdeka Centre which revealed that voters are
beginning to feel positive about the economy.
In the survey conducted from Sept 4 to 14, 56 per cent of Malaysians
said they were satisfied with Mr NajibÃs performance in office.
A total of 47 per cent of Malaysians felt the country was heading in
the right direction over issues which include the economy, while 56
per cent were satisfied with the way things were going.
The economy is a key challenge for Mr Najib as he tries to win back
support that was lost in last yearÃs general election.
Political analyst Shaharuddin Badaruddin of Universiti Teknologi Mara
said: ëMr Najib is quite sharp compared to the previous prime
minister, so there is some confidence there from investors.Ã
Still, there are political issues that Mr Najib needs to tackle.
ëTo gain more confidence, he needs to strengthen BN and stabilise the
Malaysian Chinese Association and Malaysian Indian Congress. He also
needs to have a better relationship with the opposition states,Ã said
Professor Shaharuddin.
He was referring to ties between the federal government and the four
Pakatan Rakyat states that include economic powerhouses Selangor and
Penang.
The states have a tough time getting development allocations as such
funds are controlled by the federal government.
The economic rebound is important also for Mr Najib, who last week
announced plans to grow Malaysia by 6 per cent a year until 2020, so
that it could become a ëhigh-incomeà nation.
The good economic news will provide a positive backdrop as the Premier
travels to New York and Washington next week to market Malaysia to
potential investors.
hazlinh@sph.com.sg
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Garuda To Issue New Shares In IPO Planned Next Year - CEO [+AirAsia plans Thai, Indonesia listings]
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Garuda To Issue New Shares In IPO Planned Next Year - CEO
SINGAPORE, Nov 20 (Dow Jones)--Indonesian national airline PT Garuda
Indonesia will issue new shares that will be offered to public
investors next year, its Chief Executive Emirsyah Satar said Friday.
"ItÃs not really government shares," Satar told reporters. "The
(proceeds) will go to the company."
Analysts said that issuing new shares will help expedite GarudaÃs plan
to go public.
Despite having obtained a green light from parliament, the government
appears reluctant to privatize Garuda on fears of a political
backlash, analysts said.
Cash-strapped Garuda will get fresh funds from the sale.
Satar said in August that Garuda aimed to raise between $300 million
and $400 million from an initial public offering it plan to undertake
in the first half of 2010.
Garuda would use the proceeds to fund itÃs planned business expansion,
he said, adding that Garuda was worth an estimated $1.5 billion in
total.
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AirAsia plans Thai, Indonesia listings - paper
KUALA LUMPUR, Nov 20 (Reuters) - Malaysian low cost carrier AirAsia
(AIRA.KL) plans to list on the Thai stock exchange and later on in
Indonesia, its chief executive Tony Fernandes told the Business Times
newspaper.
"The plan is to list AirAsia group in Thailand and later in
Indonesia," Fernandes told the paper in an interview published on
Friday ahead of the companyÃs third-quarter earnings.
Fernandes said the move would enable AirAsia to tap into other liquid
Asian stock markets and said the airline was "looking at issuing new
shares".
Malaysian bank CIMB (CIMB.KL) recently listed in Thailand.
AirAsiaÃs share price has gained 52 percent since the start of the
year, outperforming the 45.4 percent rise in the broader market
index .KLSE. (Reporting by David Chance; Editing by Valerie Lee)
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Palm Oil Exports From Indonesia to Rise 6-8 pct [2 Reports]
also: Indonesia 2010 palm oil exports seen up 6-8 pct - assoc
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Palm Oil Exports From Indonesia to Rise, Group Says
By Yoga Rusmana and Claire Leow
Nov. 20 (Bloomberg) -- Palm oil output and exports from Indonesia, the
biggest producer, may increase to a record next year as the global
economic recovery stokes demand for the most- consumed vegetable oil,
according to industry officials.
Shipments may expand between 7 percent and 10 percent from an
estimated 15.8 million metric tons this year, Fadhil Hasan, executive
director at the Indonesian Palm Oil Association, said in an interview.
Output in 2010 may climb to at least 21.5 million tons from this
yearÃs 20.5 million, Hasan said.
Increased shipments may help cool prices that have risen 40 percent
this year on signs the global economy is recovering from the worst
recession since World War II. The rise has been aided by gains in
crude oil. Palm oil is used in foods and fuels.
ìDemand from China, India and even Pakistan should help to minimize
and even outweigh the export impact of any lingering economic weakness
from the developed economies,î Scott Briggs, agricultural commodities
strategist at Australia and New Zealand Banking Group Ltd. in
Melbourne, said by e-mail.
The Organization for Economic Cooperation and Development yesterday
doubled its growth forecast for the leading developed economies next
year to 1.9 percent as China powers a global recovery. China and India
are the top vegetable oil consumers.
ìEconomic recovery in the U.S. and Europe, and strong growth in China
and Indiaî will support demand, Hasan said yesterday. The Indonesian
grouping, founded in 1981, has 378 members that control about half of
the nationÃs planted area.
Price Gains
Palm oil for February delivery gained as much as 0.5 percent to 2,382
ringgit ($700) a ton today on the Malaysia Derivatives Exchange,
before trading at 2,374 ringgit at 11:10 a.m. local time. The most-
active contract climbed to a three- month high on Nov. 18.
The price must stay at about current levels as further gains will make
palm oil less attractive than other edible oils, said Steaven Halim,
second secretary at the association.
ìI donÃt think itÃs good if it goes higher, because usually if it gets
too high, users will rationalize consumption,î he said. Palm oil
competes with soybean oil.
HasanÃs palm oil output forecast is less than the prediction from
Dorab Mistry, director of Godrej International Ltd., one of IndiaÃs
biggest buyers of vegetable oils.
Mistry said in September that Indonesia may produce 21.5 million tons
this year, and 23.5 million in 2010. Output in Malaysia, the second-
largest producer, may total 17.5 million tons this year and expand by
500,000 tons next year, he said. Mistry has been trading edible oils
for more than three decades.
Exports Advance
Indonesia shipped 11.4 million tons in the first nine months of the
year, 16 percent more than a year ago, the association said Oct. 19.
Inventories probably climbed to 1.7 million tons in October, compared
with the August and September average of 1.3 million to 1.4 million
tons, the nationÃs palm oil board said Nov. 2.
Stockpile levels of 1.5 million to 1.7 million tons a month are
normal, Halim said
India imported 8.66 million tons of vegetable oils in the year ended
Oct. 30, 2009, the highest level in 15 years, the Solvent ExtractorsÃ
Association said Nov. 16. Palm oil makes up 80 percent of the total.
Palm oil purchases by China climbed 9 percent to 3.9 million tons
between January and September, according to customs data.
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Indonesia 2010 palm oil exports seen up 6-8 pct - assoc
* India, China continue to lead export demand in 2010
* Weather supportive for higher output despite El Nino fear
By Aloysius Bhui
JAKARTA, Nov 19 (Reuters) - IndonesiaÃs palm oil exports are expected
to grow between 6-8 percent in 2010, from 16 million tonnes estimated
for this year, an industry official said on Thursday, thanks to buying
from India and China. The worldÃs top palm oil producer is expected to
produce 22.5 million tonnes of palm oil next year, against 20.5
million tonnes seen for this year, said Fadhil Hasan, executive
director of Indonesian Palm Oil Producers Association (GAPKI).
Hasan told Reuters that weather conditions were favourable for higher
production next year.
"As for exports, I think we should be able to maintain growth from
recent years. Demand from traditional markets, India and China, will
remain strong," he said.
He said there was also hope for a pick up in palm purchases from
Pakistan if it agrees to lower the import tax rate for Indonesian palm
oil products, putting it on a par with Malaysia.
IndonesiaÃs palm exports to Pakistan have slumped in the past two
years after Pakistan cut the import tax for palm oil from rival
producer Malaysia. More than half of IndonesiaÃs palm oil exports are
in the form of crude palm oil while Malaysia exports mostly higher
value by-products. (Reporting by Aloysius Bhui; Editing by Sara Webb)
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Indonesia Rice Production to Reach 64 Million Tons in 2009, Surpassing Forecast: Indonesia Official
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Rice production to reach 64 million tons in 2009
Jakarta, Nov. 20 (Antara News) - Indonesia`s rice production is
predicted to reach 64 million tons this year surpassing the
forecast of the National Bureau of Statistics of 63.68 million
tons, an agriculture ministry official said.
"(We) are optimistic the production of dried unhulled rice could
reach 64 million tons, up 5.83 percent from 2008," the director
general of food crops, Sutarto Alimoeso, said after
participating in a fit and proper test as a candidate for
president director of Perum Bulog.
Sutarto said the hike in the rice production had been driven by
climate conditions which were very supportive while drought and
floods had been less so that they did not disrupt production.
The distribution of top seeds have also helped contribute to the
rise of rice production as well as the presence of the
Integrated Crops Management Field Schooling.
"The supply of subsidized fertilizers is sufficient and scarcity
of fertilizers has also never happened," he said.
Regarding soybean production he predicted it would increase to
above one million tons this year.
"The target of above one million tons is extraordinary. It is up
by around 24 percent from last year`s production which was
recorded at 700,000 tons," he said.
Based on third forecast figures production has now reached
966,000 tons.
He said soybean production had been boosted to reduce
dependencey on imports. He said with average soybean production
increased above 20 percent it was expected in 2014 Indonesia
would be self-sufficient in the commodity.
"In 2014 production of soybean could reach 2.5 million tons a
year," he said.
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Bank Tabungan Negara To Sell 27.08% Stake Via IPO
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Bank Tabungan Negara To Sell 27.08% Stake Via IPO
JAKARTA, Nov 19 (Dow Jones)--State-owned mortgage lender PT Bank
Tabungan Negara said in a prospectus Thursday that it plans to sell as
many as 2.36 billion shares, or a 27.08% stake, through an initial
public offering between Dec. 10 and Dec. 11.
"We have set the indicative price for the IPO at between IDR750 and
IDR1,100 per share," Bank Tabungan Chief Executive Iqbal Latanro told
reporters.
Analysts said that based on the indicative price, the bank could raise
between IDR1.8 trillion ($188 million) and IDR2.6 trillion.
Latanro expects that the bank will price the shares on Dec. 3.
The face value of the shares is IDR500 each.
The shares will be listed on the Indonesia Stock Exchange on Dec. 17.
PT Mandiri Sekuritas and PT CIMB Securities Indonesia are the lead
underwriters for the IPO.
Latanro said that the bank plans to have a seven-day marketing road
show for investors in Asia and Europe from Friday.
The bank said that it will use the net proceeds from the IPO to
strengthen its working capital and increase lending.
Its assets at end-June were IDR48.7 trillion.
To support the bankÃs lending growth, Latanro said that his bank plans
to issue up to IDR1.5 trillion in sub-ordinated debt and IDR500
billion in mortgage backed assets in the first half of 2010.
"By issuing the bonds, we expect our lending to increase by 20% next
year," Latanro said.
He expects the bankÃs total outstanding loans by the end of 2009 will
be IDR40 trillion.
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Bloomberg: OECD Argues Against More Spending as IndonesiaÃs Economy Recovers [+New Tax Rule WonÃt Hurt Bond Market, Official Says]
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also: Bloomberg: New Tax Rule WonÃt
Hurt Bond Market, Official Says
Bloomberg
November 19, 2009
OECD Argues Against More Spending
as IndonesiaÃs Economy Recovers
by Aloysius Unditu
The Indonesian government should not be considering increasing
spending, the Organization for Economic Cooperation and
Development said a day after Morgan Stanley urged a boost in
outlays to spur growth.
ìGiven that the recovery appears to have begun in earnest,
additional fiscal easing would not be advisable,î the
Paris-based OECD said in a report on Thursday, saying likely
inflation and unspent money from government projects were the
main threats. ìGrowth picked up significantly in the second and
third quarters.î
The OECDÃs call for fiscal restraint contrasts with the views of
Morgan Stanley economist Deyi Tan, who said on Wednesday that
the government ìhas roomî to raise spending by about 3 percent
of gross domestic product. The government expects the budget
deficit to narrow to 1.6 percent of GDP in 2010 from around 2.5
percent this year.
Both the OECD and Morgan Stanley acknowledged that some
of the pro-growth policies adopted by President Susilo Bambang
YudhoyonoÃs government are being hampered by infrastructure
constraints.
ìImplementation bottlenecks continue to delay execution of
investment projects,î it said. ìThe 2009 budget deficit target
of 2.5 percent of GDP may therefore be undershot.î
YudhoyonoÃs efforts to jump-start development spending during
his first term were slowed by a number of ìstructural
impediments,î Morgan Stanley said.
Tan noted that none of the 91 projects worth an estimated $22.5
billion which the government put out to tender during the 2005
Infrastructure Summit have materialized.
ìLand-acquisition issues, the lack of consistency in regulation
at the central and regional government levels, the lack of
separation in functions such as policy making, regulating,
contracting and operating,î are some of the impediments, she
said.
Despite these hurdles, ìActivity is picking up in earnest,î the
OECD said about the economy.
Economic growth, targeted at 5 percent next year by the national
budget, ìis set to gather some further impetus, buoyed by rising
investment and easing credit conditions.î
Therefore, ìMonetary policy may need to begin to be tightened in
the first half of 2010 to ensure attainment of the end-year
inflation target,î the OECD report said.
------------------
Bloomberg
November 19, 2009
New Tax Rule WonÃt Hurt Bond Market, Official Says
An tax rule signed early this month will not change the
treatment on gains made by foreign investors in the local debt
market, a finance ministry official said.
The ruling ìaims to prevent domestic taxpayers from using
foreign parties as a vehicle to avoid taxes,î Rahmat Waluyanto,
director general of debt management at the ministry, said on
Thursday. The ruling requires taxpayers to file additional
documents to prove their eligibility under double-taxation
prevention agreements, Rahmat said. It will take effect on Jan.
1.
The more stringent regulation may dampen foreign interest in
Indonesian bonds and prompt selling in the rupiah, analysts said
on Thursday.
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Analysis: RI Economy in 2010: Growth in Moderation
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The Jakarta Post
Wednesday, November 18, 2009
2010 economy: Growth in moderation
Harry Su, Researcher
We expect the Indonesian economy to grow moderately by 5.2 percent in
2010, following a dip in 2009 GDP growth to 4.3 percent.
While this is not a significant escalation, we believe an emerging
middle class and a relatively young population will help drive a
healthy and solid growth outlook for the country going forward.
This is underpinned by continued robust private consumption on
relatively low inflation and increased consumer bank financing
activities.
Similarly, investment activities may also rise in tandem with
IndonesiaÃs positive economic growth prospects.
However, this would hinge a great deal on how the scandals surrounding
the Corruption Eradication Commission (KPK) would be resolved.
In our view, there continues to be a great need for Indonesia to
attack corruption and for substantial increases in civil servantsÃ
salaries in order to reduce the temptations for graft.
In addition, problems related to the legal uncertainties afflicting
commercial transactions must also be tackled.
This is particularly so given the fact that the KPK is currently in
disarray, which could pave way for cronyism to weigh down upon
reformers, blocking the momentum for institutional alteration that is
currently taking shape.
For economic growth to take place, it is imperative for the government
to ensure that poverty eradication remains on course for Indonesia.
And this means the realization on the governmentÃs blue print on plans
towards decentralization.
Apart from poverty eradication, it is clear that IndonesiaÃs physical
infrastructure requires improvement, but there are undoubtedly hurdles
which must be overcome, such as on land acquisition.
Nevertheless, we remain positive on IndonesiaÃs economic growth
outlook in 2009 and 2010, particularly when compared to the rest of
the world, still reeling from the recent global economic crisis.
As the government commits to boost infrastructure development and with
private consumption remaining solid, we expect the countryÃs economic
growth to accelerate to 5.2 percent year-on-year next year.
But in the scheme of things, growth in moderation certainly places
Indonesia ahead of the curve compared to most other countries in the
world today.
The writer is the senior vice president and head of research at Bahana
Securities.
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TOPIC: U.S. Embassy/Jakarta: Remarks by President Obama and President
Yudhoyono of Indonesia After Bilateral Meeting
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Embassy of the United States
Jakarta
Public Affairs Section
Press Release
November 15, 2009
REMARKS BY PRESIDENT OBAMA AND
PRESIDENT YUDHOYONO OF INDONESIA
AFTER BILATERAL MEETING
Shangri-La Hotel
Singapore
PRESIDENT OBAMA: Hello, everybody. I just wanted to make a
brief statement about the wonderful relationship that IÃve been
able to develop with President Yudhoyono. As many of you know, I
have some historic ties to Indonesia, but I am also
extraordinarily impressed with the progress that Indonesia has
made in developing its democracy. I want to congratulate the
President for his recent re-election, and he now has his
government in place.
Indonesia is not only regionally important, but as a member of
the G20, as one of the worldÃs largest democracies, as one of
the worldÃs largest Islamic nations, it has enormous influence
and really is, I think, a potential model for the kind of
development strategies, democracy strategies, as well as
interfaith strategies that are going to be so important moving
forward.
We had a strong discussion about a range of issues and how we
can create even better bilateral relations than we already have
-- a comprehensive agreement, comprehensive partnership
agreement that weÃre developing that will cover things like
education, working on clean energy issues, expanding the Peace
Corpsà presence in Indonesia, counterterrorism issues. These are
all areas in which we intend to focus in the months and years to
come.
We discussed some of the broader challenges of getting a
meaningful Copenhagen agreement and continuing to stabilize the
world economy and promoting growth, both through trade and
investment and also through what has been discussed throughout
the ASEAN summit, the idea of inclusive development and growth
where itÃs not just at the top but is spread out among the
population.
So I am very excited about our prospects for deepening
relations in the future, and I want to make sure that everybody
knows that I intend to be visiting Indonesia next year. The
invitation thatÃs been extended to -- by President Yudhoyono is
one that I want to take up, and IÃm hoping to be able to take
Michelle and the girls as well so that they can take a look at
some of my old haunting grounds. (Laughter.) And again, I want
to thank you, Mr. President, for your leadership and your
commitment to improving ties between the United States and
Indonesia. Thank you very much.
PRESIDENT YUDHOYONO: Thank you. (Applause.)
Yes, President Obama and I had a very good discussion on wide
range of issues of common interests. President Obama is a friend
of Indonesia. He knows Indonesia very well, and he is well
respected in Indonesia.
In this meeting, I told President Obama that I really
appreciate his fresh new approach to the world, to many
international issues, including his positive outreach to the
Islamic world.
We also renewed our commitment to elevate our relation at
higher level for comprehensive partnerships, and I welcome also
the future cooperation between Indonesia and the United States
in various fields such as trade and investment, education and
technology, climate change, food and energy security, countering
communicable diseases and also counterterrorism and
people-to-people contact.
And lastly, as has been shared by President Obama, I look
forward to welcoming President Obama to Indonesia next year, and
he will be warmly welcomed by the Indonesian people.
Thank you.
PRESIDENT OBAMA: Thank you so much. (Applause.)
=== ==== === ==================================
AirAsia to tap Southeast Asian capital market
By M. Jegathesan (AFP) ñ 1 day ago
== ===== === ==================================
KUALA LUMPUR ó Southeast AsiaÃs biggest budget carrier AirAsia plans to list on the Thai and Indonesian stock exchanges in a bid to tap the regionÃs capital markets despite a turbulent year for airlines.
AirAsia has the most extensive network in Southeast Asia, with more than 70 destinations across 20 countries -- and has grown dramatically from just two planes to its current fleet of 85 in just seven years.
Now the company, currently listed only in Malaysia, wants to list itself and its Thai affiliate in Thailand. It also wants to list its Indonesian affiliate in Indonesia.
Group chief executive Tony Fernandes said the moves would give it more of a Southeast Asian identity.
"We are an ASEAN company. We want many ASEAN investors to buy our shares," he told AFP over the weekend in Kuala Lumpur.
AirAsia is a big capital stock on the Malaysian bourse. "By listing on the three stock exchanges, it will boost AirAsiaÃs ASEAN identity," he said.
Indonesia is Southeast AsiaÃs most-populated nation while Thailand and Malaysia are key members of regional bloc the Association of Southeast Asian Nations (ASEAN).
Fernandes said he was unable to say when the listings would take place as the plan was still in its infancy, but was confident there would be demand for the shares, despite the industryÃs problems during the global economic downturn.
"The timing is great in Asia. And Southeast Asia is a huge market," he said of the regionÃs 550 million people.
Yeah Kim Leng, chief economist with ratings agency RAM Holdings, in Malaysia, told AFP that the listing of AirAsia on the Thai bourse would allow Fernandes to "raise capital and to reduce overall gearing."
Listing the affiliates, Thai AirAsia and Indonesia AirAsia, would also add fresh dynamism to the capital markets in Thailand and Indonesia and "will enable local investors to participate in the growth potential of the company," he said.
Fernandes said AirAsia had picked CIMB Investment Bank Bhd, a unit of MalaysiaÃs second largest bank CIMB Group Holdings, as lead arranger for the stock listings.
AirAsiaÃs listing plans come just days after CIMB Group Holdings announced it plans to list on the Thai stock exchange in the first half of 2010.
On the outlook for the aviation industry, Fernandes said AirAsia was in better shape than many of its competitors.
"We will press ahead with our route expansion. For instance, we will continue to expand into India. The whole Indian subcontinent is an exciting region for AirAsia," he said.
AirAsia, which services more than 130 routes, already flies to Kolkata, Trichy, Kochi and Trivandrum.
While premium carriers have suffered, Fernandes said low-cost carriers have been more resilient in weathering the economic downturn.
"Passenger demand for AirAsia seats remained strong. We will weather the storm very well. Our demand for fourth quarter is good," he said.
AirAsiaÃs net profit in the three months to September climbed to 130.07 million ringgit (38.4 million dollars) from a loss of 465.53 million ringgit a year ago.
Andrew Herdman, director general of the Association of Asia Pacific Airlines (AAPA), said the first 10 months of 2009 "has been one of the most difficult and challenging for airlines in the history of aviation."
During the period, AAPA international passenger numbers were down by 8.2 percent, while air cargo experienced a 16.5 percent decline.
Herdman said the industry has to steer a difficult course over the next year.
===== ===== ====== =============================
RI, Malaysia agree to form joint labor task force
===== === ======== ============================
The Jakarta Post
Tuesday, November 17, 2009
RI, Malaysia agree to form joint labor task force
The Jakarta Post, Jakarta
Indonesia and Malaysia have agreed to set up a joint task force
to deal with migrant workers from the former working in the
latter, says a minister.
Manpower and Transmigration Minister Muhaimin Iskandar said
Monday that in addition to adopting preventive action along the
border between the two countries, the join task force?s main
task would be to handle workers entering crossing into Malaysia
illegally and those embroiled in disputes with employers.
?We can and must settle the remaining problems immediately,?
Muhaimin said on a visit to the Indonesian Embassy in Kuala
Lumpur to meet with some of the troubled workers.
?We?ll also have to settle all problems relating to their
recruitment and training at home so that only skilled workers
will be sent overseas.?
Accompanied by Indonesian Ambassador Da?i Bachtiar, Muhaimin and
his entourage, including high-ranking ministry officials, talked
with the workers and advised against entering Malaysia illegally.
The agreement was made following last week?s bilateral talks
between President Susilo Bambang Yudhoyono and Malaysian Prime
Minister Najib Razak in Kuala Lumpur.
During the talks, Malaysia said it would keep applying due legal
process in criminal cases involving the migrant workers.
Yudhoyono?s Malaysian trip came in the wake of several
high-profile cases of Indonesian domestic workers being abused
by their Malaysian employers. Since June this year, at least
three such workers have died at the hands of their employers.
In June, Indonesia put in place a temporary ban on sending
wor-kers to Malaysia and Kuwait, in response to increasing
reports of Indonesian domestic workers being abused there.
Malaysian labor law threatens harsh punishment for those
employing illegal immigrants and those entering the country
illegally and working without the proper permits.
Both governments have also agreed that migrant workers should be
in possession of their own passports, rather that leaving it
with employers, to prevent them being abused.
A proposal for a minimum wage has also been made, as have calls
for a weekly day off.
Manpower Minister Muhaimin also called on regional
administrations, the police, the immigration office and the
National Agency for Overseas Labor Placement and Protection
(BNP2TKI) to enhance coordination and take concrete measures to
prevent job seekers from going overseas illegally.
The government will tighten supervision at 51 airports
nationwide to prevent Indonesian workers traveling illegally to
Malaysia or the Middle East.
Muhaimin said the worker ban would likely be lifted if Malaysia
and Kuwait signed a memorandum of understanding by the end of
this week.
Prior to the worker ban, the number of Indonesian migrant
workers heading to Malaysia amounted to 400,000 this year, but
dropped to 230,000 since June.
An estimated 2.2 million Indonesian workers are believed to have
resettled in Malaysia without the proper permits.
Muhaimin also said he would revitalize all labor training
centers to prepare overseas-bound workers prior to their
departure.
?This must be done to help ease the unemployment rate,? he said.
===== ======= ===== ========================================================
Article hopeful Malaysians, Indonesians to strengthen ties as shown by leaders
======= ====== ======= ===================================================
BBC Monitoring Asia Pacific
November 16, 2009
Article hopeful Malaysians, Indonesians to strengthen ties as
shown by leaders
Text of report in English by Malaysian newspaper Utusan Malaysia
website on 14 November
[Article by Noraini Abd Razak: "Malaysia-Indonesia relations
after SusiloÃs visit"]
Malaysia becomes the first country that Susilo Bambang Yudhoyono
visited after he was given a mandate to continue leading
Indonesia.
The visit has brought about a great significance to bilateral
relations between the two countries.
The fact is the ëgood nameà of Malaysia-Indonesia has been
slightly tarnished lately. There have always been unpleasant
incidents that broke out or attempts to generate an
uncomfortable atmosphere for the peoples of both countries.
That was why a meeting with Susilo and his Malaysian
counterpart, Datuk Sri Najib Tun Razak, had become the hope for
many people who want to see Malaysia-Indonesia relationship is
on the right tract.
All quarters also want to see a ëconfirmationà that the ëchaosÃ
that surfaced did not get the blessing of the neighbouring
countryÃs leader.
Conversely, there are an unseen groups that do not like to see
the close ties between Malaysia and Indonesia and want to upset
the harmony that have been nurtured for such a long time.
The outcome of SusiloÃs two-day visit to Malaysia has proved
that the trivial issues that a certain group in Indonesia is
ëstruggling forà are not approved and the actions are far from
being accepted.
This is because the trivial issues have continued to hurt the
feelings of people in this country, especially when Indonesian
protestors burned the Malaysian flag and stomped on it without a
slightest respect.
And if the trivial issues cannot be dealt with effectively, they
can mar the relations between the two countries and also the
people to people relations as well as simultaneously, spoil the
spirit of ASEAN [Association of Southeast Asian Nations]
What is more, Malaysia and Indonesia share many common values as
countries of the Malay roots and with populations, the majority
of which are Muslims.
By right, they should benefit from the relationship that has
been established since long ago and this should be strengthened
based on the point that Malaysia is a Muslim country and
Indonesia, has a record of having the largest Muslim population
in the world.
However, there are the quarters that do not like the bilateral
relations to proceed smoothly. So one issue after another has
been triggered but no one actually knows what their objective is.
It is also not known what mistake has Malaysia committed until
there is a group that is willing to do something to tarnish this
countryÃs relations with Indonesia.
It is well-known that both countries mutually need each other.
In fact, in many matters, Malaysia and Indonesia cannot afford
to be unfriendly and, much less, to hate each other.
The most important thing is to ensure that the outcome of the
cordial meeting between Susilo and Najib can be absorbed by the
peoples in both countries. The sincerity of the two leaders to
strengthen relations between the two countries and between their
peoples should be emulated.
It is useless if the top leaders are very serious in wanting to
do the best, but there is be a group that reacts in a manner
contrary to their efforts.
Sometimes, there are some quarters that deliberately wish to
disturb Malaysia-Indonesia relations and exaggerate trivial
issues as though bilateral ties between the two countries will
get to nowhere. .
No less important is for the two countries to promote the
exchange of information and immediately clarify about the
trivial issues that have been raised in order to prevent
confusion from changing to be a flame of hatred.
The task is not hard if all quarters are serious in wanting to
maintain the relations that have been established and then to
ensure that no quarters try to take advantage and destroy them.
To what extent the people are receptive to the commitment of
both leaders to efforts to strengthen cooperation in various
fields should be ascertained.
Malaysia and Indonesia cannot afford to be squabbling anymore.
In this era of globalization that offers various and confusing
challenges, the two countries must foster close relations.
The failure of some countries in Asian region to maintain
harmonious relations with its neighbour cannot be allowed to
happen to Malaysia and Indonesia.
This is because if such a situation occurs, the effect is so
severe that it can jeopardize the relationship that has been
established thus far.
SusiloÃs visit was brief but it brings a very deep understanding
-not only from the point of maintaining political ties but also
protecting his peopleÃs good feelings either when in their own
country or in Malaysia.
It is hoped that the closeness shown during the visit will be
emulated by the groups that never ceased to incite tension so as
to correct the wrong depiction of the meaning of
Malaysia-Indonesia relations.
Source: Utusan Malaysia website, Kuala Lumpur, in English 14 Nov
09
======== ========= ===== =============================================
Malaysian plan to buy Indonesian APCs hampered by limited production capacity
======= ======== ===== ===============================================
BBC Monitoring Asia Pacific
November 16, 2009
Malaysian plan to buy Indonesian APCs hampered by limited
production capacity
Text of report by Indonesian government-owned news agency Antara
website
[Unattributed article: ëMalaysia Minati Panser Buatan IndonesiaÃ]
Indonesian Defence Minister Purnomo Yusgiantoro has revealed
that the Malaysian Government was interested in procuring more
armoured personnel carriers (APCs) from PT Pindad after
previously ordering 30 units. However, these plans have been
hampered by PindadÃs production capacity.
"A question was posed last night as to whether or not there were
restrictions in place. I did not think there were any
restrictions, but there were possibly production limitations. We
have also ordered 150 APCs. Malaysia has already imported some
and wants to buy more," Yusgiantoro said on 12 November 2009
whilst accompanying President Yudhoyono on a state visit to
Malaysia.
According to Yusgiantoro, PT PindadÃs production capacity is
still limited and focused on fulfilling the requirements of the
Indonesian Armed Forces (TNI) so any orders from overseas would
be difficult to facilitate.
"This needs to be addressed. One way is to expand production
capacity. But our defence industry is currently stop-start. I
have heard that the main problem is funding and a lack of long
term contracts. This is what needs to be rectified. This also
must become a high priority programme," said Yusgiantoro.
Yusgiantoro added that Pindad was in the process of increasing
production of its SS-2 assault rifle after the success of the
SS-1, as well as increasing production of its grenades, mortars
and other combat soldier requirements.
Concerning the Department of DefenceÃs (Dephan) priority
programmes, Yusgiantoro said that a TNI force would be prepared
especially for handling natural disasters. Dephan has already
coordinated with the National Disaster Mitigation Agency (BNPB)
in order to integrate these programmes with TNI.
"First we had the [Army Strategic Reserve CommandÃs] 1st and 2nd
Infantry Divisions at Cilodong and Singosari. These rapid
reaction forces were initially formed for war but now handle
disasters. We must ensure that our engineer and medical
battalions are strong and concentrate on peaceful objectives,"
said Yusgiantoro.
After meeting Malaysian Defence Minister Ahmad Zahid Hamidi on
11 November, it was agreed that Indonesian and Malaysian naval
forces would not fire on each other if either side were found to
have encroached on each othersà territorial waters, like what
had happened in the Ambalat Block. Yusgiantoro said that often
the violations were unintentional and due to minor matters, so
they needed to be prevented so that they did not provoke a
bigger problem.
Apart from the border matters, Indonesia and Malaysia also
agreed to increase cooperation with Singapore in relation to
naval patrols, especially in the Malacca Strait. Yusgiantoro
said the intensity of patrols and the amount of personnel taking
part would be increased.
Source: Antara news agency, Jakarta, in Indonesian 0000 gmt 12
Nov 09
===== ======= === ===========================================
update: Trade Ministry, Kadin Back Asean Zero Tariff Agreement
=== =========== ======= =====================================
The Jakarta Globe
November 17, 2009
Trade Ministry, Kadin Back Asean Zero Tariff Agreement
by Irvan Tisnabudi
Representatives from the Trade Ministry and the Indonesian
Chamber of Commerce on Monday expressed optimism about the
economic benefits the nation would reap under a new zero tariff
agreement in the Association of Southeast Asian Nations.
The Asean Zero Tariff Agreement was signed on Saturday night by
Indonesia and five other nations ó Brunei, Malaysia, the
Philippines, Singapore and Thailand ó in the 10-nation grouping.
The agreement aims to gradually reduce all tariffs on goods in
the form of import duties between the six nations to zero by
2015, in time for the signing of a proposed Asean economic
community agreement.
Policy implementation will start on Jan. 1, with an initial
target of zero to 5 percent import tariffs for 98 percent of
goods. However, the tariffs still exclude some ìsensitiveî
commodities, such as rice, which is deemed as essential to
IndonesiaÃs food security.
John Prasetio, international department vice chairman of the
chamber, also known as Kadin, said the agreement would increase
IndonesiaÃs competitiveness in international trade.
ìIn the past, [inefficient] local producers could use tariffs as
shields, but they wonÃt be able to anymore,î he said. ìThe
[agreement] will push efficiencies in domestic production and
will affect existing policies concerning investment, industry
and trade.
Changes in policy would further increase IndonesiaÃs
competitiveness, he said.
ìFor example, I hope to see a lowering of tariffs on imported
raw materials, as foreign exporters will then lower their prices
and domestic producers that use the materials will benefit.î
Prasetio added that the agreement could also push infrastructure
development here.
ìAs investors welcome the freer market, the countryÃs
infrastructure will be enhanced as well. ItÃs logical.î
He said, however, that increased competitiveness would also mean
there were going to be some losers. ìIf local producers cannot
keep up with the increased competition, theyÃll get left behind.î
Speaking separately, Gusmardi Bustami, the director general of
international trade cooperation at the Trade Ministry, hoped to
see a more open market in the next few years.
ìThe flow of goods will be better, traders will have a more
choices,î he said.
But Djimanto, deputy chairman of the Indonesian EmployersÃ
Association (Apindo), said the agreement would pose a challenge
to the government.
ìOnce the agreement is implemented, the government will have to
make very sure that they get the business community involved in
decision- making, to make sure that everybody is happy with the
lowered tariffs,î Djimanto said.
ìThey will also have to make the right decisions regarding which
imported commodities will have lowered tariffs, so it will not
be a smooth ride for the government [in entering the free trade
world].î
The Asean Trade Facilitation Joint Consultative Committee, made
up of officials in the six nationsà trade, customs, standards,
transport and sanitary departments, will monitor implementation
of the agreement.
===== ==== ==== =========================================
ADB:Approved $300M Capital Mkt Development Loan For Indonesia
==== ===== ==== ========================================
ADB:Approved $300M Capital Mkt Development Loan For Indonesia
JAKARTA, Nov 16 (Dow Jones)--The Asian Development Bank said in
a statement Monday that it has approved a $300 million loan to
support the second phase of IndonesiaÃs capital market
development program.
It said the loan will go toward policy reforms and providing
budgetary support for the governmentÃs fiscal stimulus program
in response to the global economic crisis, to support the
governmentÃs program to develop the local capital markets as a
source of long-term funding for infrastructure, and other
development needs.
The ADB said the 15-year loan with a three-year grace period
will be sourced from its ordinary capital resources with
interest determined in accordance with its London interbank
rate-based lending facility.
The capital markets development program aims, among others, to
deepen government and corporate bond markets as well as
interbank money markets, while broadening the investor base by
promoting institutional investors such as contractual savings
and collective investment schemes, via initiatives such as
policy reforms to improve financial governance and market
efficiency, the ADB said.
=== ==== === ===========================================
Oil Majors Race to Seal Deals in Nigeria
Firms Want to Beat Possible Law That Would Raise Tax, Royalty Rates
===== == ==== ============================================
By WILL CONNORS
WARRI, Nigeria -- Western oil companies operating in Nigeria are racing to lock up license renewals ahead of legislation that could boost tax and royalty rates.
Amid the negotiating scramble, several big players are expected to recommit to community-development programs and local infrastructure projects. Royal Dutch Shell PLC has even agreed to offer business training to former gun-toting militants in the volatile, oil-rich Niger Delta, following a government-sponsored amnesty here.
A sense of urgency arose among the Western oil majors after the Nigerian government said earlier this year it had received an expression of interest from oil-thirsty China to buy the rights to the expiring licenses. Nigerian officials confirmed in September that ChinaÃs state-owned Cnooc Ltd. was interested in more than 20 oil blocks, including nonexpiring blocks currently operated by Western companies.
ChinaÃs chances of actually acquiring the leases from the government were never very good. Apart from legal avenues Western companies could pursue to prevent their licenses from being taken and given to the Chinese, Western operators in Nigeria have been pumping oil for years and have longstanding, though sometimes volatile, relations with Abuja.
In more-recent discussions, their worry over Chinese competition seems to have subsided. "That threat appears to have gone away," said an industry executive familiar with the talks. "It is not being used as a negotiating ploy to get the deals done."
But oil companies are still eager to get renewal discussions over with and sign deals. ThatÃs because the Nigerian government is considering legislation that would change the scope of new oil-related joint ventures, increasing tax and royalty rates paid by foreign companies.
On Friday, Exxon Mobil Corp. became the first big company to lock in renewals, signing an extension for 20 years, with an option to renew, on three of its licenses.
Shell Chief Executive Peter Voser met Nigerian President Umaru YarÃAdua in October to discuss renewal of ShellÃs licenses. At the meeting, Shell officials argued they had been long-term investors in Nigeria and shouldnÃt be forced out of the countryÃs oil fields now, said one official who attended the meeting.
"We talked about us building the foundation, us building the house, us living in the house and others knocking on the door," this official said, referring to the Chinese offer. The president "got it," the official said.
A Shell spokeswoman declined to comment on the negotiations. "We expect that the formalization of the renewal of these licenses can be accommodated through continued dialogue with the federal government," she said.
Chevron Corp. is also discussing license renewals. "WeÃre in contact with the Nigerian government about license issues. WeÃre seeking clarity on this matter," a Chevron official said.
Nigerian officials couldnÃt be reached for comment on negotiations.
Established players such as Shell, Exxon, Chevron and FranceÃs Total SA have worked NigeriaÃs fields for decades, through cycles of violent militancy, oil theft, corruption and frequent failure by the government to follow through on investment commitments in partnerships with the oil companies.
Despite all those headaches, oil companies are eager to stay in the region because of NigeriaÃs vast reserves. Amid worry over their licenses in recent months, they have demonstrated fresh commitment.
Shell said earlier this month that it had taken the extraordinary step of starting a business-training and rehabilitation program for former militants from the Delta region. Shell has yet to provide details about the program or how much it will cost.
In October, thousands of militants turned themselves in and handed over their weapons in exchange for amnesty. Analysts now see public efforts by companies to contribute to post-amnesty rehabilitation as a possible new focus of oil-company largesse.
"There could be some pressure outside and within the international oil companies to improve their relationship with the government," said Antony Goldman, a Nigeria analyst based in London. "If oil companies feel that they can make a gesture to show that they can help [in the post amnesty process], there may be a payoff."
=== === === ================================
Nigeria exceeds 40bn oil reserves targetÃ
By Elisha Bala-Gbogbo
== === ===== ===============================
NigeriaÃs quest to grow its oil reserve target of 40 billion barrels has been achieved earlier than the targeted 2010 deadline, the countryÃs geoscientistsà chief has revealed.
Growing the nationÃs recoverable oil reserve has been at the fore of the federal governmentÃs twin vision for improving exploration and production in the upstream petroleum sector; the other is raising oil output to four million barrels per day by 2010. This drive has been on since 2003.
Victor Agbe-Davies, president of the Nigerian Association of Explorationists (NAPE), disclosed in Lagos last week that the oil reserve target for next year has been surpassed.
ìWeÃve surpassed the 40 billion barrel mark now in terms of reserve and these are from newer fields. The only thing is that our daily production is still hovering around 2.4 million barrels of oil per day. Geoscientists have been busy in all the oil companies and the exploration team have been busy looking for reserves and theyÃve been able to get additional reserves.î
Nature of the oil reserves
The reserves are book reserves based on the prospects that have been identified and those that have been drilled. However, more drilling needs to be carried out to determine the extent of the fields concerned.
Mr Agbe-Davies revealed that the international oil companies are responsible for achieving this. ìWeÃre talking about the all the big companies, weÃre talking about Total, Shell, Chevron, Agip ... all the big companies have been at the fore because theyÃre the ones that have the deeper pockets. They canÃt make any announcements now because theyÃre not being produced.î
It is when actual oil production commences that the oil companies announce figures.
Although there has not been an official announcement from the oil companies, the Department of Petroleum Resources (DPR), the industry regulator, or the Nigerian National Petroleum Corporation (NNPC), the most recent data from the DPR indicates the likelihood of this development.
Reserve position as at the third quarter of 2009 was 38.61 billion barrels. ìThere is an observed net increase of 480 million barrels against January 2008 reserves, representing 1.46 percent increase,î according to DPR data.
This is despite no exploration wells spudded during the last quarter. However, 40 developmental wells were drilled during the same period.
During the quarterly briefing held last week, Billy Agha, a director at the DPR, said the regulatory agency has commenced the auditing of oil and gas reserves for all Exploration and Production companies towards the end of the third quarter.
ìThe exercise is to validate and authenticate the reserve figures to DPR by the companies.î
The Department of Petroleum Resources said that the countryÃs oil reserve will hit 40 billion barrels by 2010.
Deep water operations
Offshore fields in deep water Nigeria have continued to play a significant role increasing oil output and growing the reserves.
Although Mr Agbe-Davies said, ìfields onshore, in shallow water, and deep waterî contributed to attaining the target, it is noticeable that the Production Sharing Contracts assets in the deep offshore areas accounted for the bulk of the reserve growth.
Mr Agha confirmed that ìthe bulk of the increase is coming from the deep and ultra deep offshore.î Besides, he noted, there are three categories of reserves- proven reserves, probable reserves and possible reserves.
He added that some development wells upon first drilling might not have any reserves, but on further and deeper drilling will yield hidden reserves.
Most of NigeriaÃs giant fields in the last two decade have come from deep water; fields like Agbami, Erha, Akpo, and Bonga.
The NAPE boss enthused that the reserve figures could reach as high as 50 billion barrels by the end of next year.
ìThe deep offshore has a very important role to play in reserve growth because most of the big finds will come from the deep offshore,î he said. ìAnd that means that companies are doing the right thing now by ensuring that they revisit all the data they have on the deep offshore to be able to grow more reserve. I believe this will yield result.î
=== === === ================================
EU signs deal with Nigeria to support peace
(AFP) ñ
=== ==== == =================================
ABUJA ó The European Commission has signed a 677 million euro (one billion dollar) deal to help Nigeria tackle challenges in its restive oil-producing region, promoting peace, good governance and trade, the EU said Friday.
The EU said the deal, signed in Brussels on Thursday by European Commissioner for Development and Humanitarian Aid Karel De Gucht and NigeriaÃs Executive Secretary of the National Planning Commission Sylvester Monye, was "an ambitious step forward in cooperation" and "a direct result of the Nigeria-EU political dialogue".
"It reinforces cooperation in three strategic areas: peace and security; governance and human rights; trade and regional integration with 677 million euros for the period 2009 to 2013 financed through the European Development Fund, " the EU said in the statement released in the Nigerian capital on Friday.
De Gucht said: "This agreement shows that Europe stands by Nigeria and its people in the development challenges it faces. IÃm delighted that a substantial amount of this financing will go to support conflict resolution and the peace process in the Niger Delta which has been ravaged by years of unrest."
The Niger Delta has for more than three years been a haven for armed militants claiming to be fighting for a greater share of oil wealth for their communities.
At the peak of the unrest Nigeria, the worldÃs eighth largest exporter of crude, saw its output slashed by a third.
"We are fully committed to supporting the government of Nigeria in the process of restoring peace and bringing development to the region," De Gucht added.
The cooperation programme entails a "Country Strategy Paper and National Indicative Programme" (CSP/NIP) of the 10th European Development Fund (EDF), which covers the period 2008-2013.
The EU said this CSP/NIP differs significantly from the earlier 10th EDF (2008-2013) cooperation strategies launched with the other African, Caribbean and Pacific countries.
"For the first time it ties political dialogue at the highest levels with cooperation policy," it said, adding that the strategy and programme are based on the priorities established at the EU-Nigeria Ministerial meetings in Ljubljana (May 2008) and Prague (June 2009).
Copyright © 2009 AFP. All rights reserved.
==== === === ===========================================
Exploring investment opportunities: BoI delegation completes successful visit to Malaysia
=== === === ==========================================
ISLAMABAD: Malaysia and Pakistan have agreed to explore and enhance mutual investment opportunities through an interactive coordination between the Board of Investment (BoI), Pakistan and the Malaysian Industrial Development Authority (MIDA).
Tariq Iqbal Puri, Secretary, Ministry of Investment, along with his delegation paid an official visit to Malaysia extended from 16th of November to 18th of November to explore investment opportunities and areas of mutual coordination.
According to a message received here, during a meeting between Tariq Iqbal Puri and Dato Wahab Hamid, Deputy Director General MIDA, it was agreed in principle to share investment intelligence and encourage cross border investors and intend technical cooperation between the two sister organisations. Moreover, a consensus was reached to focus on round table conferences, which should highlight information pertaining to projects of vital importance.
The Secretary, BoI appreciated the role played by MIDA in the economic stability of Malaysia and emphasised on his counterpart that BoI will also consider seriously the approach adopted by MIDA to enhance its effectiveness in investment promotion. One striking feature that has helped the improved effectiveness of MIDA is the ìone window operationî which ensures close coordination among Immigration, Environment, Telecom, Customs, Labour and Power departments with a changed mode from regulation to facilitation.
Investment Counsellor, Dato Salim Bin Fateh Din hosted an investor round table meeting in his office. Prominent business houses like DRB-HICOM Berhad, Renexus (M) Sdn Bhd, MMC Corporation Berhad, Pollution Engineering Bina puri Holdings Bhd, Tenaga National Berhad (TNB), MayBank, Padibernas Nasional Berhad (Bernas), attended the meeting. staff report
=== === == ======================================
Thomson Reuters
UPDATE 1-Foreign visitors to Turkey rise 6.28 pct in October
11.23.09, 04:14 AM EST
= === == =======================================
ISTANBUL, Nov 23 (Reuters) - The number of foreign visitors to Turkey rose 6.28 percent year-on-year in October to 2.62 million, the Tourism Ministry said on Monday, pointing to a possible recovery in the important sector.
The number of visitors, who provide a key source of foreign currency for Turkey, rose 1.96 percent to 24.45 million in the first 10 months of the year, the ministry also said.
The number of tourists declined as much as 7.5 percent year-on-year earlier this year.
Despite the rise in the number of tourists coming to Turkey, revenues from the industry fell 4.6 percent from a year earlier to $9.526 billion in the high-season third quarter.
Tourism receipts rose 18.5 percent last year to almost $22 billion, or 3 percent of gross domestic product.
A total of 26.336 million tourists visited Turkey in 2008, making it one of the top destinations in the Mediterranean.
== == === =====================================================
President: Iran, Turkey can be each otherÃs major trade partners
President Mahmoud Ahmadinejad said here Friday that Iran and Turkey can be each otherÃs major trade partners.
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President Ahmadinejad further told Turkish Foreign Minister Ahmet Davutoglu that if Tehran-Ankara trade relations are well adjusted, they will secure mutual interests.
Conveying Turkish Prime Minister Recep Teyyip ErdoganÃs warm greetings to Ahmadinejad in the meeting, Davutoglu said Tehran and Ankara can by joint planning, shape better two-way ties in the future.
The two sides at the meeting also discussed bilateral and regional issues of mutual interest. |
Thursday, 26 November 2009
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