Govt has five commitments to help MSMEs

Jakarta (ANTARA News) - Indonesia's Cooperatives, Small and Medium Entrepreneurs Minister Suryadharma Ali said there were five government commitments in helping micro, small and medium entrepreneurs (MSMEs).

Among them were the empowerment of Business Development Service Providers (BDS-P), funding, creation of job opportunities and empowerment of civitas academic cooperatives as well as harmonization in understanding MSMEs through the law.

Speaking at a journalists orientation forum here on Thursday, the minister stressed that the first government commitment had to do with efforts to empower business development service providers (BDSP).

This institution played a key role in providing consultation services to MSME centers in Indonesia in addition to giving non financial assistance to MSMEs in developing the potential of their businesses. Besides, this institution was also attempting to bridge productive sources like information on capital, markets, technology and human resources.

Data from the Cooperatives, Small and Medium Entrepreneurs Ministry indicated that the empowerment of BDSP had already been developed since 2001.

At present there are about 957 BDSPs, most of which are scattered in 33 provinces and 339 districts/cities.

The second government commitment was linked particularly to funding sector. Talking about funding, many MSMEs were unbankable even though their business prospects were good. They often ran into difficulties in their efforts to obtain working capital.

MSMEs had such assets as plots of land or business buildings. Unfortunately their ownership right could not be made as a collateral in getting credit from banks.

Hence, the ministry had cooperated with the National Land Agency (BPN for many years to make certification program over their right, Suryadharma said adding that it was a chance for MSMEs to solve their funding problems.

"The funding aspect for MSMEs is one of the realizations of the government`s policy package in the real sector," he said adding that improving the aspect of funding, the government will take two steps, namely developing micro financial institutions and credit quaranty program for MSMEs.

Suryadharma also reiterated the third commitment which had to do with the efforts to create job opportunity through university graduates` self employment program (Prospek Mandiri).

This program is directly oriented to business by creating new business opportunities and not to create new job seekers.

In 2006, university graduates` self-employment and job-opportunity creation program was more focused on six provinces, namely East Java, Yogyakarta, West Kalimantan, Maluku, West Nusa Tenggara and Riau islands.

According to a plan, at least 925 university graduates who had set up around 37 cooperatives were reported to be members of the program.

In addition, the cooperatives, small and medium entrepreneurs ministry also had the fourth commitment for the employment of civitas academic cooperatives (Kocika).

The government had allocated a budget of about Rp5 billion for strengthening their capital in the form of revolving funds in 10 Kocika cooperatives in ten higher learning institutions.

Furthermore, the minister said the budget for Kocika program would rise to Rp13 billion in 2008.

The fifth comitment, he added, had to do with harmonization of MSMEs understanding under the law which until now is still under discussion at the House of Representatives.

Under the law, there will be a legal umbrella for the cooperatives, small and medium entrepreneurs ministry to execute their task in helping MSMEs in the country.

West Sumba teacher takes home Kalpataru award

M. Taufiqurrahman, The Jakarta Post, Jakarta

Like Sysiphus of Greek mythology, who relentlessly carries a rock uphill, West Sumba native Elan Wukak Victor has for years carried out a similarly endless task, growing trees on rocks.

The 63-year-old English teacher started by encouraging his pupils to grow trees in their schoolyard, an idea he took from school to school.

And after 30 years, Elan has planted 400,000 trees, distributed 100,000 seeds to 23 green community groups he helped set up as well as built 81 water reservoirs across Waikabubak, a barren, hilly village in West Sumba, East Nusa Tenggara.

Elan's hard work paid off on Wednesday, when he, along with 11 other environmental activists, was awarded a Kalpataru, the highest award for environmentalists in Indonesia.

Elan won in environmental conservation pioneer category, together with Amandus Kaize from Merauke, Papua, and village head Slamet Tugiyanto from Magelang, Central Java.

Kaize was honored for his efforts to grow a rare variety of plants in a protected forest controlled by his tribal community, while Slamet won for promoting multiple crops among local farmers.

One notable figure who also won the award was former West Java governor Solichin Gautama Purwanegara, for his campaign against illegal logging and on the regreening of community-controlled forests in nine regencies in West Java.

Apart from the Kalpataru awards given to environmental activists, the government has handed out Adipura awards to cities that strive to promote cleanliness.

This year, the government gave the awards to 84 cities throughout the country. More than 300 cities were nominated for the Adipura awards this year.

All five municipalities in Jakarta won Kalpatarus in the category of metropolitan city. Other cities in the category which won Kalpataru are Palembang in South Sumatra and Surabaya in East Java.

Jakarta's gain, however, was at the loss of other cities in the greater Jakarta area such as Bekasi, Bogor and Tangerang. None of these cities won Adipura in this year's contest.

Other cities which also won Adipura include Padang (West Sumatra), Yogyakarta, Denpasar (Bali), Malang (East Java) and Pekanbaru (Riau).

President Susilo Bambang Yudhoyono said in his speech before presenting the two awards that the Indonesian people did not have to wait for people in other countries to save the environment.

"Let us save the earth together with other people in this world," Yudhoyono said.

The President also called on local governments to take environmental protection into account when making policy.

He also reiterated his statement about the need to prepare for global warming's fallout.

Yudhoyono said that global warming would have a disastrous impact on Indonesia as an archipelagic country, as the rising of sea levels would drown many of the country's small islands.

"The time is high for us to find a breakthrough and brace for global warming," he said.

More money for remote areas next year, says minister

Ary Hermawan, The Jakarta Post, Jakarta

The Transportation Ministry will focus its capital spending on remote and disaster-hit areas in 2008, with Rp 3 trillion (US$333 million) having been set aside to build and expand airports and seaports in Papua, Maluku and North Sumatra.

According to the ministry's 2008 business plan, these development projects are based on the assumption that the ministry will get Rp 15 trillion next year, a 49 percent increase over its budget for this year.

"We will distribute the funds proportionately to those provinces ... infrastructure development in Papua and West Irian Jaya has been identified as a priority," Transportation Minister Hatta Radjasa said last week.

The ministry will allocate Rp 1 trillion for expanding existing ports and airports, and building new ones in the two eastern provinces. "This is one of the biggest items," Hatta said. It includes the expansion of seven strategic ports in Papua at a cost of Rp 86 billion.

The construction of more seaports and the provision of more ferries archipelagic provinces, such as Maluku, North Maluku, East Nusa Tenggara and North Sulawesi, would also be prioritized so as to shorten travel times in these regions.

"Especially in Maluku, it can involve a month's wait for a ship from one island to another at the moment," Hatta said. The ministry plans to allocate Rp 239 billion on the development of the sea-transportation sector in the province.

Another large chunk of the money will be spent on the construction of the new Kualanamu Airport in North Sumatra (Rp 930 billion) and Lombok Baru Airport (Rp 515 billion) in West Nusa Tenggara, and on expanding Hasanuddin Airport, which will cost about Rp 491 billion.

The ministry will continue funding the construction of the Kualanamu Airport and Hasanuddin Airport through 2009, Hatta added.

The ministry's plan also states that it will provide Rp 200 billion for the expansion or construction of 27 small airports in remote and disaster-hit areas, including Banda Aceh, Nias, Meulaboh, Nunukan, Atambua, Alor, Tanah Merah and Nabire.

Hatta said capital expenditure in the transportation sector would be aimed at supporting economic growth.

"Transportation is the backbone of the economy as it has an important role to play in reducing the costs of distribution in every industry," he said.

VP launches forest and land rehabilitation program

ANTARA News - 2006-12-28 14:30:03

Jakarta, December 28, 2006 (ANTARA News) - Indonesian Vice President Jusuf Kalla is scheduled to launch a national forest and land rehabilitation program in a ceremony held at Empol village, Sekotong, West Lombok, West Nusa Tenggara (NTB) on Thursday.

Kalla during the ceremony is also expected to present awards to eight governors, 15 district heads and mayors as well as 12 farmers` groups for their achievement in conducting forest and land rehabilitation programs in their respective regions.

Information from the Vice President`s Secretariat office said here on Thursday that among those receiving the awards would include Gorontalo Governor Fadel Muhammad.

During his stay in NTB, Jusuf Kalla is accompanied by Deputy Chairman of the People`s Consultative Assembly (MPR) Aksa Mahmud, Agriculture Minister Anton Apriyantono, Research and Technology Minister Kusmayanto Kadiman, Environmental Affairs Minister Rachmad Witoelar, Golkar Party Secretary General Sumarsono, and two legislators, namely Enggartiasto Lukito an and Rully Chairul Azwar.

Meanwhile, Mme. Mufidah Kalla is scheduled to visit a seaweed and cashew nut processing factory, PT Phonix Mas Persada, at Abian Tubuh, and a Lombok Pottery industry at Cakra Negara, Mataram city.

The Vice President and his entourage left Jakarta on Thursday by The Indonesian Air Force`s Boeing 737 presidential plane from the Halim Perdana Kusuma air force base.

An official reported earlier that the deforestation rate in Indonesia reached two million hectares annually while its reforestation rate was only around 600,000 hectares per year.

The deforestation rate has tended to increase from year to year, Dr. Harri Santosa, secretary of the organizing committee of the National Forest and Land Rehabilitation Program, said in Mataram, NTB Province on Wednesday.

Santosa said the deforestation rate in Indonesia was around 900,000 hectares in 1990 and it increased to 1.8 million hectares in 2004.

In 2006, the deforestation rate was recorded at 2.8 million hectares, he said, adding that the rate was two million hectares per year on the average.

The country`s total deforested areas were about 60 million hectares, he added.

Three Indonesian provinces, namely East Nusa Tenggara (NTT), Southeast Sulawesi and NTB, were currently being threatened by desertification, he added.

Govt to maximize 'local potentials' in building power plants

JAKARTA (Antara): The government will maximize the use of local resources in building coal-fired power plants outside Java currently in bidding process, a senior official at the Ministry of Energy and Mineral Resources said Tuesday.

"The local potentials include goods, manpower as well as funding," said the ministry's director general of electricity and energy utilization J Purwono.

"We will ask the contractors to use local resources including machineries, construction materials and manpower although the funding come from foreign sources, which usually are binding ones," he added.

Purwono pointed to the construction of a foreign-funded 7 megawatts (MW) coal-fired power plant which could use up to 30 percent of local content.

He also called local financial institutions to be proactive in funding power plant projects saying it could be a market for local lenders.

"Indonesian banks should also compete to finance power projects. Don't be passive," he said.

The government has announced on Dec. 19 a tender for the construction of 25 coal-fired power plants outside Java.

Four power plants will have the capacity of 100 to 200 MW to be built in Aceh, North Sumatra, West Sumatra and Lampung provinces.

Another four power plants with 50-65 MW of capacity slated for West Kalimantan, South Kalimantan, Central Kalimantan and South Sulawesi provinces.

There are also 17 plants with smaller capacities of 7 to 25 MW scattered nation wide in Bangka Belitung, Riau, Riau Islands, West Kalimantan, Maluku, North Maluku, Papua, East Nusa Tenggara,West Nusa Tenggara, Gorontalo, Southeast Sulawesi and North Sulawesi provinces.

These power plants are part of the government's plan to generate additional 10,000 MW of electricity by 2009.

As for Java island, the government has started bidding process for 10 power plants. Seven power plants will the capacity of 300 to 400 MW while the remaining three with 600 to 700 MW of capacity.