Are You suprised

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Are You suprised
INDONES IA
N E W S L E T T E R
CONSULATE GENERAL OF THE REPUBLIC OF INDONESIA, MUMBAI, INDIA
VOLUME 09/ SEPTEMBER 2002
MONTHLY
Tourism Indonesia Mart & Expo
(TIME) 2002
TIME 2002 CLINCHES US $13 MILLION DEAL
The Indonesian Tourism Promotion Board (ITPB), with
the support of the Indonesian Department of Culture
and Tourism, The Jakarta City Government, Garuda
Indonesia and PACTO Convex Ltd recently organized
the 9th Tourism Indonesia Mart & Expo (TIME) 2002
from September 4 to 8, 2002. A total of 162 sellers from
16 Indonesian provinces occupied 138 boths featuring
most of Indonesia’s tourist attractions which include all
popular tourist destinations and special interests as
well as top tourist facilities available in the country to
126 buyers from 28 countries in 36 pre-scheduled
appointment at the Mart taking place at the exhibition
venue. Panel Discussions themed “Re-discovering Indonesia Overland” was held
attended by 400 participants and the same was attendance of some prominent
speakers. H.E. Mr. I. Gede Ardika, Indonesian State Minister of Culture & Tourism
officially opened the Mart followed by signing the MOU between MPI, The Indonesian
Tourism Council and the Association of District Government of Indonesia (APKASI).
Present on this occasion were the Indonesian Coordinating Minister for Social Welfare,
H.E. Mr. Yusuf Kalla and the Minister of Home Affairs and Regional Autonomy, H.E. Mr.
Hary Sabarno and some another 700 invited guests. Tourism Indonesia Mart & Expo
(TIME) 2002 clinched a US $13 million transaction deal, up by 10 percent from the
previous year. The 10th Indonesia Tourism Mart & Expo will be held next year from
September 3-6, 2003.
IITELMIT 2003
TH
THE 4 ANNUAL INDONESIAN INTERNATIONAL TELECOMMUNICATION
MEDIA AND INFORMATION TECHNOLOGY CONFERENCE AND EXHIBITION
MAY 7-10, 2003 AT JAKARTA CONVENTION CENTRE, JAKARTA -INDONESIA
(For further information please refer page no.7)
or
http://www.iitelmit.com/2003/
If you would like to Buy products From Indonesia
Let our experts help you…….
N at i o na l A g e n c y f or E xp or t D e v e l op m e nt ( N A F E D )
Jl. Gajah Mada No 8 P.O. Box : 443/JKT, Jakarta 10130, Indonesia
Tel : (62-21)6341082(Hunting),6334580,63852468
Fax : (62-21)6336568,6338360,63852468
Website : http://www.nafed.go.id E-mail : [email protected]
INDONESIA NEWSLETTER – SEPTEMBER ISSUE
** I N D E X **
Page 1.
 TIME 2002 – Special report
 IITELMIT 2003
 NAFED
Page 2.
 Indonesian Government reforms
sectors
to
lure
foreign
investment
 RI enjoys surplus in trade with
ASEAN
 Exports and imports in August
2002
 Free competition in power sector
Page 3.
 Government
to
develop
Agropolitan
 Car sales up in August –
GAIKINDO
 RI
and
China
studying
cooperation
in
Steel
manufacturing
 Rolls Royce to build power plant
in South Sulawesi
 Kuwait to invest in Indonesian Oil
industry
 Honda to invest US $61 mln in
Indonesian Auto Factory
 Tunisian Investor to build Two
compound fertilizer plants in
Indonesia
 Indonesia to become production
bases for Daihatsu
Page 4.
 Western Australia establishing
cooperation with East Java’s
Sidoarjo district
 South Sumatra offers Germany
Investors toll road & seaport
dev’t project
 Indofarma expands operation to
foreign countries
 Pertamina-Sonatrach
to
cooperate in Oil supply
 Bajaj Auto plans at assembly
opportunities in Indonesia
 RI plans to boost promotion in
middle east to attract more
visitors
 Indonesian products at tigers of
Asia show/EXPO 2002 in Miami,
Florida
 Foreign Tourist Arrivals increase
in Indonesia
Page 5.
 Japan
the
biggest
foreign
tourists to Bali
 Expatriate community to be
treated to fun-filled programs
 Festival of India in Indonesia
 New world’s largest SPA to open
in Jimbaran
 Bali’s first airline soon to launch
 The 3rd Cocoa Conference 2002
 Indonesian
Industry
Page 6.
Telecommunicaiton
Page 7.
 IITELMIT 2003
Page 8.
 Shopping in Indonesia
 Ragunan ZOO
 Sea World Indonesia
INDONESIAN GOVERNMENT REFORMS SECTORS TO LURE FOREIGN
INVESTMENT : Indonesian Vice President, Hamzah Haz recently said that
the Indonesian government has been reforming at least five sectors in an
effort to attract foreign investment. The sectors which are being reformed
are security, human resources, electricity, legal and infrastructure,
especially in the country’s eastern regions. The Vice president said these
under-performing sectors had negatively influenced investment in
Indonesia.
RI ENJOYS SURPLUS IN TRADE WITH ASEAN : An official at the
Indonesian Ministry of Trade and Industry reported that Indonesia saw an
annual average growth of 7.94 percent in its trade with other ASEAN
countries in the past five years. Exports to ASEAN countries between 1996
and 2001 grew by an average of 2.73 percent annually. In 1996 Indonesia
earned US $8.31 billion from exports to other ASEAN countries, and the
figure further rose to US $9.50 billion in year 2001.
EXPORTS AND IMPORTS IN AUGUST 2002 : The Indonesian Central
Bureau of Statistics (BPS) reported that in the month of August 2002
exports declined by 2.27 percent to US $4.90 billion from US $5.01 billion
in the previous month, while imports increased to US $2.82 billion from US
$2.60 billion. BPS Deputy Chief, Slamet Mukeno said that the higher
imports were propelled by import of machinery, raising expectations that
the country’s manufacturers were gearing up to boost exports in the
coming months. Out of 10 main items, machinery occupied the biggest
contributor for the overall increase in imports, in which machinery import
increased by 18.13 percent in August. BPS said that from January to
August, exports fell to US $37.35 billion from US $39.34 billion in the same
period last year. BPS said that export decline in August was caused by a
3.7 percent fall in non-oil gas exports to US $3.88 billion from US $4.03
billion, while oil and gas exports increased to US $1.01 billion from US
$978.5 million. BPS said that the U.S., Japan and Singapore remained the
country’s largest export destinations.
FREE COMPETITION IN POWER SECTOR : The Indonesian Government
will begin liberalizing the country’s power sector in 2007, with Batam, Java,
and Bali expected to be the first areas to introduce free market
competition. The Indonesian government believes that the industrial island
of Batam will be ready to implement free-market competition in five years
time, point to the fact that power prices in Batam are already higher than in
other areas of the country. In the less developed areas of the country, the
government will continue providing subsidies for power consumers,
determining power prices until the areas are developed enough for open
competition. The House of Representatives recently passed a new power
bill after more than one and a half years of deliberation. Under the new
law, expected to be approved by President, H.E. Mrs. Megawati
Soekarnoputri, the government will strip state electricity PT PLN of its four
decade-long monopoly of the power sector, The new law will allow private
companies to produce power and sell it to the public. The government has
said power demand on the islands of Java and Bali alone could exceed the
supply by 2003, when the peak load is expected to hit 15,441 MW
compared with an installed capacity of 15,285 MW. According the
Indonesian Government, Indonesia needs about US $28.45 billion in new
investment over the next 10 years to build new power plants and a power
network to stave off a power crisis in Java, Bali and other parts of the
country.
INDONESIA NEWSLETTER(SEPTEMBER ISSUE)
2
INDONESIA NEWSLETTER – SEPTEMBER ISSUE
GOVERNMENT TO DEVELOP AGROPOLITAN : The
government plans to boost development of small
businesses in the agricultural sector through the
"agropolitan" area development program to start in
eight regencies with an initial investment of Rp 12
billion. The program is based on the agribusiness
system. The eight regencies to have the pilot project
are Cianjur in West Java, Kulonprogo in Yogyakarta,
Bangli in Bali, Baru in South Sulawesi, Boalemo in
Gorontalo, Kutai Timur in East Kalimantan, Agam in
West Sumatra and Rejang Lebong in Bengkulu. The
program will involves not only the agriculture ministry
but also the home affairs ministry and the office of the
state minister for settlement and area infrastructure.
CAR SALES UP IN AUGUST - GAIKINDO : The
Indonesian Automakers Association (Gaikindo)
recently reported that new vehicle sales in Indonesian
has increased slightly by 0.8 percent to 27,119 units in
August compared to same period in July. Gaikindo
said that the commercial vehicles accounted for
24,678 units of total sales with 1.6 percent increase
compared to the previous month. The association said
that the sales volumes for passengar cars declined to
2,441 units in August from 2,597 in the previous
month. The robust sales has prompted Gaikindo to
revise upward its 2002 car sales forecast to 320,000
units from the initial projection of 300,000 units. The
Industry experts have said that the stronger domestic
car sales marked the recovery of the country’s
automotive industry after it was hit by the late 1990s
economic crisis.
INDONESIA AND CHINA STUDYING COOPERATION IN
STEEL MANUFACTURING : Indonesian and Chinese
steel industrialists are studying possibility of
cooperation in the production. Under the cooperation
Indonesia will supply steel products to meet shortage
in that country particularly in Shanghai. Indonesia also
offers China to buy a number of steel products to
increase the capacity utilization of the domestic
industry. China industry could keep pace with the fast
growing demand for steel products, therefore it needs
imports. Shanghai especially needs zinc coated steel
for use in electronic industry producing refrigerators
and air conditioners.
ROLLS ROYCE TO BUILD POWER PLANT IN
INDONESIA’S SOUTH SULAWESI : The British
company, Rolls Royce Pte Ltd, and its Indonesian
partner, PT Essarindo Tirta Jasa, will construct an 80
megawatt gas-powered electricity plant in Wajo
district, South Sulawesi. The two companies will
construct and operate the power plant, while the local
government will supply the gas. Wajo district heas,
Naharuddin Tinulu said that the power plant is
expected to provide electricity not only to South
Sulawesi but to neighboring Southeast Sulawesi and
Central Sulawesi as well. The representatives of both
the companies and the local government officials has
signed the memorandum of understanding on the
project recently. With huge electricity supply Wajo is
expected to lure more foreign investors with the
district also has agricultural and mining potentials.
KUWAIT TO INVEST IN INDONESIAN OIL INDUSTRY :
Kuwait will invest US 1.5 billion in oil explorations in
Indonesia’s eastern part of Maluku and Natuna
islands, making it the largest investor from the
MiddleEast in Indonesia. Kuwait also plan to put
additional US $280 million in infrastructure investment
in Indonesia. The additional investment will be
allocated for the toll road construction in the provinces
of North Sumatra and West Java. Before, the Kuwait
has also invested US $150 million for various
construction works, such as bridges, seaport and
power plants.
HONDA TO INVEST US $61MLN IN INDONESIAN AUTO
FACTORY : PT Honda Auto Parts will invest US $61
million in the construction of a new Auto parts factory
in Karawang, West Java following Indonesian
government approval. Honda Auto part is a joint
venture between Javanese investors Honda Motor
Co, Ltd, which holds 95 percent of the shares and
Okamoto Satoshi holding remaining 5 percent. The
factory will produce automotive transmission with an
annual capacity of 300,000 units and engine valves
with an capacity of 700,000 units.
TUNISIAN INVESTOR TO BUILD TWO COMPOUND
FERTILIZER PLANTS IN INDONESIA : Tunisian investor
recently expressed interest in building two compound
fertilizer plants in Indonesia. The investor is also
interested in cooperation with the existing
government-owned fertilizer factories. According to
Director General of Agricultural Development at the
Ministry of Agriculture, in July 2002 a Tunisian
Fertilizer factory delegation visited Indonesia to study
possibilities of building compound fertilizer plants and
has visited two government fertilizer plants, PT Pupuk
Sriwijaya and PT Pupuk Kaltim, further the Tunisian
investor and the two government fertilizer plants have
reached agreement to realize the project. One of the
factories will be built in South Sumatra and the other
in East Kalimantan with each to have a production
capacity of 400,000 tons per year. The project is
expected to reduce Indonesia’s dependence on
imported compound fertilizer. Indonesia’s current
fertilizer consumption reaches one million tons per
year, while domestic production reaches only 300,000
tons, and the rest still has to be imported.
INDONESIA TO BECOME PRODUCTION BASES FOR
DAIHATSU : Daihatsu Motor Co. will produce the
cheapest minivan in Indonesia starting next year with
market target all over the world. In the first year the
company plans to produce 40,000 units.The car will
INDONESIA NEWSLETTER(SEPTEMBER ISSUE)
3
INDONESIA NEWSLETTER – SEPTEMBER ISSUE
use the model of Taruna car known in Japan as
Terios. Trauna is sold at Rp 100 million making it the
cheapest in its class in the country. Daihatsu plans to
export cars to China, India, Latin America and Middle
East. The step is part of the marketing strategy of
Daihatsu.
major thrust market. Bajaj Auto’s Indonesia plans
come in the wake of a new interest in Asean markets
by Indian two-wheeler manufacturers.TVS has already
shortlisted Indonesia, Thailand and Vietnam as its
focus markets for the future and is willing to invest
around Rs 250 crore in its overseas businesses.
WESTERN AUSTRALIA ESTABLISHING COOPERATION
WITH EAST JAVA’S SIDOARJO DISTRICT : The
Director of Western Australia government’s regional
administration affairs department, Ross Taylor has
reported that the Western Australia government is
now exploring the possibility of establishing
cooperation with East Java provinces, Sidoarjo district
which has industrial potential. Director of Western
Australia government’s regional administration affairs
department has further promised to encourage
Western Australian businessmen to establish
cooperation with counterparts of Sidoarjo district.
RI PLANS TO BOOST PROMOTION IN MIDDLE EAST
TO ATTRACT MORE VISITORS : The Indonesian State
Ministry of Tourism and Culture is planning to boost
tourism to lure more visitors from Middle East
countries. The Chairman of the Indonesian Culture
and Tourism Board (ICBT) Mr. Setyanto P. Santosa
said that the campaign would be jointly conducted
with several travel agents, including the use of an
international tourism expo and several road shows to
Middle East Countries. Further Mr. Setyanto P.
Santosa said that during the first half of the current
year, about 50,000 tourists from the Middle East came
to Indonesia, accounting for 1.9 percent of the total
2.7 million foreign visitors who arrived during that
period. The Indonesian government is targeting to
draw some 5.4 million foreign visitors this year, which
is an increase from last year’s 5.1 million. Total
foreign exchange earnings expected to be garnered
from tourism this year is about US $5.7 billion,
compared to US $5 billion last year.
SOUTH SUMATRA OFFERS GERMANY INVESTORS
TOLL ROAD & SEAPORT DEV’T PROJECT : The South
Sumatra administration has offered the German
investors a toll road and seaport development project
in the province. The offer was conveyed by South
Sumatra governor Rosihan Arsyad in a meeting with
German Ambassador Gerhard Fulda recently. The
proposed 50-km toll road will connect Palembang city
and Idralaya in Ogan Komering llir district.
INDOFARMA EXPANDS OPERATION TO FOREIGN
COUNTRIES : PT Indofarma is preparing a big step for
marketing expansion to various countries starting with
the naming of local partner or establishment of
subsidiaries in those countries. The company will
develop cooperation with local companies and name
distributors to handle its marketing. It has established
cooperation with international research centers such
Oxford Natural Product in Britain. The research center
will help Indofarma to develop products using raw
material from Indonesia to be accepted in international
market.
PERTAMINA-SONATRACH TO COOPERATE IN OIL
SUPPLY. The state-owned oil and gas company
Pertamina will soon sign a cooperation agreement
with Algerian oil company Sonatrach in the supply of 1
million barrels of the Saharan blend type of oil from
that country to the Balikpapan oil refinery in East
Kalimantan. Pertamina already used Sonatrach crude
oil from spot market. The agreement was one of the
results of a recent visit to that country by President
Megawati Soekarnoputri.
BAJAJ AUTO PLANS AT ASSEMBLY OPPORTUNITIES
IN INDONESIA : Bajaj Auto is looking at assembly
opportunities in Indonesia in collaboration with local
partners.The plans include local assembly of Bajaj
motorcycles including the Caliber, the Boxer and the
Pulsar. Bajaj said that the focusing on Indonesia as a
INDONESIAN PRODUCTS AT TIGERS OF ASIA
SHOW/EXPO 2002 IN MIAMI, FLORIDA : Indonesia for
the first time took part at “Tigers of Asia Show/EXPO
2002”, staged in Miami Beach, Florida from June 2830, 2002. Ten selected Indonesian companies
participated at the show, introducing various products
consisting of bath soaps, and detergent, palm oil,
carved wooden crafts, rattan furniture, wooden
statues, handbags, beach dresses, baby and children
wear, plastic bags, silver crafts, etc. The ten
participating companies have succeeded in getting
orders of various products with total amount of US
$427,000. The Tigers of Asia show/EXPO 2002 was
participated by approximately 1,400 companies from
Asian countries, including India, Indonesia, Thailand,
Taiwan, Hong Kong, Malaysia, and the host country,
the United States. At least 55,000 kinds of products
have been promoted at the show, from agricultural
products, handicrafts, industrial products, household
consumer goods, electronics, jewelry, and computer
hardware and software.
FOREIGN
TOURIST
ARRIVALS
INCREASE
IN
INDONESIA : The Indonesian Central Bureau of
Statistics (BPS) has reported that the number of
foreign tourists arriving in Indonesia in July increased
to 405,900, 7.83 percent higher than in the previous
month. According to the Chief of BPS Soedarti
Surbakti, the number of foreign visitors coming to
Indonesia from January to July totaled 2.46 million
people, 0.65 percent higher from the same period last
year. The Bali island was still an excellent destination
INDONESIA NEWSLETTER(SEPTEMBER ISSUE)
4
INDONESIA NEWSLETTER – SEPTEMBER ISSUE
for tourists, which attracted some 153,500 visitor in
July, and 837,300 in the first seven months.
JAPAN THE BIGGEST FOREIGN TOURISTS TO BALI :
Japan is recorded as the biggest supplier of foreign
tourists to Indonesia’s Bali province, as 42,125 of the
total 159,804 foreign tourists to the province in August
2002 were from Japan. The Head of the provincial
immigration office, Mr. I Gede Widiartha said in the
month same period Australia with 23,204 tourists and
Taiwan with 18,845 tourists visited Bali. The tourists
from other countries visiting Bali in the same period
were from British 10,830, Italians 9,580, French 7,001,
German 6,900,United States 5,702 and from
Netherlands 3,727.
EXPATRIATE COMMUNITY TO BE TREATED TO FUNFILLED PROGRAMS : The expatriate community in
Jakarta will be treated to a series of fun-filled
programs in a two-day long International Expo. The
first-ever "International Exhibition of Products,
Services and Facilities for Expatriate Community and
their Indonesian Friends" will be held at the ISCI
International Sports Club of Indonesia on Jl. Ciputat
Raya, Jakarta. With theme " Supporting Foreign
Investment In Indonesia", the Expo will run from
October 12 to 13, 2002. Modeled on the "Country
Fair" concept common in many countries, the two-day
event will feature exhibitions of varied products,
services and facilities as well as entertainment. Event
organizer PT Sinar Expo Prima said that the
expatriate community provide badly needed foreign
investment to the country. "The Expo is an opportunity
for them to relax, enjoy the programs and make new
contacts with suppliers of products and services they
may need during their stay in Indonesia," said
chairperson Ester Ferguson.
FESTIVAL OF INDIA IN INDONESIA : More than 150
Indian artists are slated to participate in the first-ever
“Festival of India” which will make a tour to Jakarta,
Bandung (West Java), Yogyakarta and Bali from
October 14 to November 14, 2002. The artists, all
from India, will appear in films, fashion shows, musical
and dance performances, such as in the Bollywood,
including in the contemporary music and dance (both
classical and contemporary). The Indian artists who
will participate in this event are Shahrukh Khan, Juhi
Chawla and Rani Mukherjee.
NEW WORLD'S LARGEST SPA TO OPEN IN JIMBARAN
: New world's largest thalasso spas will be opened in
Jimbaran, Bali in December 2002. The thalasso spas
will be equipped with the expansive European
aesthetic spa facility, comprising six hydrotherapy
treatment rooms and 21 massage rooms. Six
luxurious spa villas will be available, with each
featuring individual private, indoor and outdoor
therapy areas equipped with baths, a swimming pool
and relaxation pavilion. The pool is augmented with
peaceful and cool resting areas along the cliff-top
location overlooking the Indian Ocean, perfect for a
soothing break before or after individual or couples'
therapies. The treatments include under-seawater
massage, effusion shower, hydro jet, and seaweed
wrap and anti-cellulite therapy. Traditional Balinese
treatments will also be available, with the pool
delivering fresh seawater from the Indian Ocean in
therapeutic jet streams, micro bubbles, water
massages and Aqua beds. The spa facilities will be
opened to resorts, guests and visitors.
BALI'S FIRST AIRLINE SOON TO LAUNCH : Air
Paradise International (API), Bali's first airline, is
nearing its inaugural flight on October 28, 2002. API is
leasing aircraft from Singapore Airlines, who also
handle maintenance. Manager of API, Kadek
Wiranatha recently announced that flight schedules
included Perth (four flights / week), Melbourne (three
flights / week), Sydney (three flights / week) and
Taipei (four flights / week), as well as a JakartaDenpasar daily service, to be expanded to twice daily
within two months. The airline is using Airbus A310 300 wide-bodied aircraft with capacities of twenty
business class seats and 200 economy seats
THE 3RD INDONESIAN
COCOA CONFERENCE 2002
OCTOBER 23-25, 2002 AT MAKASAR,
SOUTH SULAWESI, INDONESIA
Theme of the conference will be :
“The Sustainability of Cocoa Industry in the
Trade Liberalization Era”
Organized by Indonesian cocoa Association (INCA)
Fully endorsed by Government of South Sulawesi
Indonesian Cocoa organization is arranging “The 3rd
International Cocoa Conference 2002 at Makasar, South
Sulawesi, Indonesia on October 23-25, 2002, The
Conference will offer the best opportunity for the Cocoa
Industry together to observe and discuss changes in past
and on going changes, also in the cocoa international. This
conference will be divided into Trading, Industry, Research
and Finance.
For inquiries and further information,
please contact :
The Secretariat of The 3rd International Cocoa
Conference and Cocoa Dinner 2002
Address: Jl. Rusa 45 B Makassar 90142,
South Sulawesi, Indonesia
Phone : (62 411) 878604 Fax : (62 411) 878566 E-mail :
[email protected]
The Secretariat of Indonesian Cocoa Association
(INCA/ASKINDO)
Address: Gedung AEKI Lt. 3, Jl. RP Suroso No. 20, Jakarta
Pusat, Indonesia
Phone : (62 21) 3925053 Fax : (62 21) 3925024 E-mail :
[email protected]
The Conference Information and update can also be
accessed at
http://www.askindo.go.to
INDONESIA NEWSLETTER(SEPTEMBER ISSUE)
5
INDONESIA NEWSLETTER – SEPTEMBER ISSUE
INDONESIAN TELECOMMUNICATION INDUSTRY – A BRIEF OVERVIEW
Indonesia, which has a population of about 220 million, currently has 7.82 million telephone lines and 4.6 million
cellular phone users. The number of cellular phone users would increase to 12.1 million by 2004. According to a US
State Department document, Indonesia had only 1.5 million telephone lines installed in 1992, representing a
telephone density of only 0.83 per 100 people – one of the lowest in Asia. To stimulate development, the
government in 1993 began an ambitious telecommunications program. About 3.1 million additional telephone lines
were installed between 1993 and 1997, increasing the country's phone density to 2.51 per 100 people. That
increase was attributed to Indonesia’s average annual economic growth of about 7% since the early 1980s, with
the telecommunications industry sector growing at about 13%. But the economic crisis that started in 1997
thwarted the government's target of 11 million telephone lines by 2000. Two companies manage Indonesia’s
telecommunications services, PT Telkom and PT Indosat. Telkom is the major domestic telecommunications service
provider and is engaged in the voice, data and image-communication sectors. Telkom's product lines are ViewNet,
MobileNet, Service Net, PhoneNet and InterNet. As of December 31, 2001, Telkom and the KSO (Joint Operation
Scheme/JOS) units recorded 7,218,938 lines in service, consisting of 3,949,905 lines in service in Telkom Regions
and 3,269,033 lines in service in KSO Regions, and along with the internet development, there are 24 Internet
Service Providers. Indosat is Telkom’s partner and provides international telecommunications services. Both are
public companies, with majority shares owned by the government. Telkom's monopoly on local fixed wire-line
communication will be ended in 2010. The company’s monopoly on long distance fixed wire-line communication is
due to end in 2005. The international connection monopoly, held by Indosat and PT Satelindo, will end in 2004.
At the end of January 2002, the government increased telephone call tariffs by an average of 15% to help cover
the state budget deficit and fund installation of more lines.At the end of January 2002, the government increased
telephone call tariffs by an average of 15% to help cover the state budget deficit and fund installation of more
lines. Local calls within an area and range of 20 kilometers now cost Rp195 (US 2 cents) for every two minutes, up
16.8% from Rp167 for every two minutes previously. For long distance calls within an area and range of between
200 kilometers and 500 kilometers, the charge has been raised by 13% to Rp915 (US 9 cents) a minute from
Rp810 a minute. The telecommunication business is considered still to have good prospects in Indonesia. The
reason is that in Indonesia the telephone use ratio was still low at just 3.17 telephone line units per 100 people in
2000 and that on the other hand demand for telephone connections has kept growing. With a population of 210
million, Indonesia indeed offers potentials as very big telecommunication market, the more so if the economy can
recover soon from its crisis. Quite big market opportunities are also inexistence in the cellular telephone sector. In
fact, lately it is the cellular phone business that has been expanding faster than the fixed phone sector. The
number of cellular phone subscribers was rising rapidly from 1.1 million in 1998 to 3.7 million in 2000, and is
expected to increase even faster in the years to come, in line with the market penetration in other countries that
have in fact reached levels far above Indonesia. The cellular phone market penetration in Indonesia in 2000 was
just 1.74 telephones per 100 people, meaning still very low compared with 39.4 telephones in Singapore, 11.1
phones in Malaysia, 4phones in Thailand and the very much bigger Korean figure of 43.2 phones (in 1999). Cellular
phone sales in Indonesia catapulted 67 percent to more than 2.4 million in the first half of the year, compared to
the same period last year, due in most part to declining prices for handsets and phone cards, according to the
Indonesian Cellular Phone Association (ATSI). Cellular subscribers jumped to 8.1 million by the end of the first half
of the year, from 6.5 million by the end of last year, the association said. Of the total handsets sold in the first half
of the year, 1,439,100 were bought by first-time users, while the remaining 986,250 were purchased by those
wanting to replace their handsets. Cellular phone sales for the first semester of last year reached 1,453,050,
including 902,700 bought by first-time users and 550,350 by those wanting to replace their old handsets, ATSI
data said. ATSI has predicted annual sales of handsets to top 3.5 million this year, while new cellular subscribers
will increase by 3 million in the second half of the year to hit 9.6 million by the end of this year. From 1997 to the
end of June 2002, a total of 8.5 million handsets were sold in the country, while total cellular subscribers numbered
8.1 million. This means that 400,000 handsets were owned by users with more than one handset. Forty percent of
the country's mobile users live in the Greater Jakarta area. Rudiantara said Finland-based handset manufacturer
Nokia was the largest supplier to the country with a market share of 70 percent. Siemens ranks second in terms of
sales volume, followed by Samsung and Ericsson. However, in terms of sales revenue, Samsung is the second
largest supplier after Nokia, followed by Siemens and Ericsson. Samsung's handsets are costlier than Siemens and
Ericsson's products. ATSI said compared to other Southeast Asian countries, the number of cellular subscribers in
Indonesia was fairly high. But the country has the lowest ratio of cellular subscribers to the population. Until the
end of this year's first semester, Malaysia had 8.3 million cellular subscribers, Singapore some 3 million, while the
Philippines had 12.7 million. Rudiantara added that the average replacement handset in the region, including
Indonesia, was considered high compared to Australia and European countries. Customers in Southeast Asia
usually replace their old handsets with new versions not more than three years later, while in Europe and Australia,
people tend to keep their handsets for more than four or five years. Business opportunities in this kind of
telecommunication sector have been opened even wider by enactment of Law No. 52 year 2000 on the
implementation of telecommunication in Indonesia. This law enables investors to have more freedom in the
development of their respective business strategies fully from the planning up to the realization stage. This
liberalization in the telecommunication sector will clearly have an impact on causing this business sector to be
more freely competitive.
INDONESIA NEWSLETTER(SEPTEMBER ISSUE)
6
INDONESIA NEWSLETTER – SEPTEMBER ISSUE
IMPORTANT CONTACTS FOR INDONESIAN TELECOMMUNICATION INDUSTRY
INDONESIAN STATE MINISTRY FOR COMMUNICATION AND INFORMATION
JL. MERDEKA BARAT NO 9, JAKARTA PUSAT, INDONESIA
TEL : (62-21)3841972
DIRECTORATE GENERAL OF POSTS AND TELECOMMUNICATIONS
GEDUNG SAPTA PESONA , JL. MEDAN MERDEKA BARAT NO. 17, JAKARTA 10110, INDONESIA
TEL : 62-21-3835912/3835849 FAX : 62-21-3860754/3860781/3844036
HOMEPAGE : http://www.postel.go.id/ E-MAIL : [email protected]
INDONESIAN TELECOMMUNICATION ASSOCIATION
ASOSIASI PERUSAHAAN NASIONAL TELEKOMUNIKASI (APNATEL)
WISMA EKA KARMA GR. FL, JL. KAPTEN TENDEAN NO. 15, JAKARTA 12790, INDONESIA
TEL : (62-21)79192821 FAX : (62-21)79192822
TELEKOMUNIKASI INDONESIA
(PERSERO) TBK,
JL. JAPATI NO 1, BANDUNG 40133 TEL : (62-22)4521510,4521108 FAX : (62-22)4240313
HOMEPAGE : http://www.telkom.co.id
INDOSAT (PERSERO) TBK
(INDONESIAN SATELLITE CORPORATION)
INDOSAT BLD, JL. MEDAN MERDEKA BARAT NO 21, JAKARTA 10110, INDONESIA
TEL : (62-21)3810777,3810727,3802614 FAX : (62-21)3458155,3809633
E-MAIL : [email protected] HOMEPAGE : www.indosat.com
MASTEL (INDONESIA INFOCOM SOCIETY)
INDONESIAN INFOCOM SOCIETY
JL. SUNGAI SAMBAS VIII/19, KEBAYORAN BARU - JAKARTA 12130, INDONESIA
Phone No. +62 21 722 7345, 722 7346 Fax No. +62 21 739 3995 HOMEPAGE : http://www.mastel.or.id/
INDUSTRI TELEKOMUNIKASI INDONESIA (PERSERO)
WISMA BISNIS INDONESIA 11TH FLOOR, JL. LETJEN S. PARMAN KAV. 12, SLIPI, JAKARTA 11410,INDONESIA
TEL : (62-21)5307161,5707162 FAX : (62-21)5307163 HOMEPAGE : http://www.inti.co.id
IITELMIT 2003
THE 4 ANNUAL INDONESIAN INTERNATIONAL TELECOMMUNICATION
MEDIA AND INFORMATION TECHNOLOGY CONFERENCE AND EXHIBITION
MAY 7-10, 2003 AT JAKARTA CONVENTION CENTRE,
JAKARTA-INDONESIA
TH
OPPORTUNITIES IN INDONESIAN TELECOMMUNICAITON INDUSTRY : Indonesia’s telecommunication
industry is currently enjoying a period of rapid growth, as the government’s liberalization policies begin to take
effect, and free competition in the wireless sector puts ever-greater pressure on the incumbent operators to
improve the quality, pricing and reliability of telecommunications and network services. As operators continue to
invest in the technology they need to service their subscribers, companies that supply carrier-class equipment and
services can be certain of a large and growing market in Indonesia.
IITELMIT 2003 EXHIBITION : The latest telecommunications and networking infrastructure solutions, the
newest IT and software offerings, and all the leading providers of local and international content all under one roof:
It can only be IITELMIT.
IITELMIT 2003 TECHNOLOGOY BUYERS PROGRAM : For the second year running, we are pleased to invite all
Enterprise Technology Buyers to participate in the Technology Buyers Program: matching the right buyers with the
right suppliers. Participation in the Technology Buyers Program is free to registered buyers and exhibitors.
IITELMIT 2003 HOSTED BY TELKOM AND INDOSAT IN ASSOCIATION WITH MASTEL : IITELMIT 2002
Conference offers opportunity to review the technologies that are newly available in Indonesia, and learn first-hand
how they can be applied to your business.
IITELMIT 2003 BUPATI FORUM : Indonesia's regional leaders present and discuss their development plans at
the heart of the industry, and the nation, in Jakarta.
ASIA PACIFIC SALELLITE CONFERENCE : The APSAT Conference, an initiative of the Indonesian Satellite
Association (ASSI), will bring together leading figures from Indonesia’s fast moving satellite industry, with top
experts in satellite development from around the world. Learn about the latest trends in satellite development, and
network with experts from the world’s top satellite companies.
ORGANIZERS OF THE EVENT : PT. RANTAI EXPO INTERNASIONAL, SUCACO Building 5th Floor, Jl. Kebon
Sirih Kav. 71, Jakarta 10340, INDONESIA, Tel: +62 21 3190 1987, Fax: +62 21 3190 1620 E-mail:
[email protected], Website: www.ptrei.com
INDONESIA NEWSLETTER(SEPTEMBER ISSUE)
7
INDONES IA
N E W S L E T T E R
SHOPPING IN INDONESIA
Indonesia is a shoppers paradise whether you are one for market
bargaining or expensive name brands Indonesia can offer it to you.
All major cities in Indonesia have local markets at which you can
bargain for items, the products for sale vary depending on the market
type and the region. Craft markets often sell batik, beautifully carved
wooden ornaments and furniture, and paintings (especially in Bali).
The capital city Jakarta is a good place to shop because it has a wide
variety of goods that have originate from various islands in the
archipelago, that are good quality.
Blok M Kebayoran Baru Jakarta has a variety of shops all under one roof you can find just about anything
here you want and more. Jalan Surabaya in Menteng, Jakarta has a wonderfully colourful antique market,
that is worth a visit even if you are not planning to buy anything, because it is a feast for the eyes and mind
to see all the hand crafted goods. Jakarta also has a good selection of markets Pasar Kembang is a flower
market, if that does not suit your needs or tastes there is Pasar Pagi Mangga Dua selling clothes, shoes, bags
and many other goods, Pasar Benhil a traditional market, and Pasar Cikini a food market, to name only a few
of the markets in Jakarta. With its giddy variety of insular environments, Indonesia has many beautiful
traditional crafts which have been made for thousands of years. Superb craftsmanship and longest traditions
are best seen in the simplest crafts: the palm weaving of Bali, the flute making of the Torajans, the basketry
of the Rotinese, the Lizard motifs on Batak magic wands and houses, and infinite other examples of
traditional domestic and cultural art. Indonesian arts and crafts lend themselves especially to attractive
decorative items and furnishings for contemporary Western homes. Batik, king of Indonesian art forms, can
be fashioned into upholstery, and the superb ikat textiles make unique wall-hangings. Shopping in Indonesia
is a real hit or miss treasure hunt; you must doggedly search every corner of a shop to find what you are
looking for. Many villages or city kampung specialize in their own crafts. If you want to know what crafts an
area or city specializes in, just ask the locals what gifts they take to out-of-town relatives when they visit.
This way, you find out what is cheap, unique or rare about that place. If the plastic arts interest you, head for
ASRI (School of Fine Arts) art centres in the largers cities where painting, drawing, graphics, sculpture and
the decorative arts are taught.
RAGUNAN ZOO
Entertainments – Recreations
Jl. Harsono RM. 1,Jakarta 12550, South Jakarta
Ph. (62-21) 780-5280 / 780-6975 Fax. (62-21) 780-5280
[email protected] http://sahabat-satwa.freeyellow.com/zool.htm
Established in the South of Jakarta in 1964, Ragunan Zoo is home to
around 4,000 animals and sees thousands of visitors each year. It
provides a welcome park atmosphere and access to wildlife for urban
Indonesians who live in and around their nation's capital. The zoo
houses many rare and endangered species, both native and exotic
and has achieved marked success in breeding many of these. The
captive breeding programmed for the indigenous Komodo Dragon has
been particularly successful. Located south of the city, Ragunan Zoo
(Kebun Binatang, Ragunan) is set in 134 hectares of grassland with
lakes and streams and provides many of the animals with purposebuilt enclosures designed to resemble their natural habitat.
SEA WORLD INDONESIA
Entertainments – Recreations
Taman Impian Jaya Ancol, Jl. R.E. Martadinata, North Jakarta
Ph. (62 21) 645-0117 / 6450-6711 / 640-6712
Fax. (62 21) 645-0118
[email protected] www.ancol.co.id
Housing over 5,000 types of tropical species from Indonesia's
bountiful oceans and beyond, Seaworld is the biggest sea-aquarium
in the Far East. Stroll through "Freshwater World" or journey to the
bottom of the sea at "Microworld". The "Touch Pool" allows you to
actually feel the marine life. Movies about the underwater world are
regularly screened. Open daily from 9 a.m. to 8 p.m.
INDONESIA NEWSLETTER IS COMPILED, PRINTED AND PUBLISHED BY THE
CONSULATE GENERAL OF THE REPUBLIC OF INDONESIA
19, ALTAMOUNT ROAD, CUMBALLA HILL, MUMBAI - 400 026, INDIA.
TEL : (91-22)3868678,3800940 FAX : (91-22)3800941 E-mail : [email protected]
INDONESIA NEWSLETTER – SEPTEMBER ISSUE
INDONESIA NEWSLETTER(SEPTEMBER ISSUE)
9

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