Good News From Indonesia

Indonesia is positioned to remain one of the fastest growing economies in Asia after China, India and Vietnam. Indonesia has the largest economy in Southeast Asia and is a member of the G-20 group of countries. As one of the emerging economies, Indonesia charted a healthy growth averaging 5.1 percent per annum over the 2000-2009 period underpinned by resilient domestic demand and a series of economic reforms. In comparison, the ASEAN economies registered an average GDP growth of 4.6 percent per annum over the same period.

Indonesia’s domestic demand is supported by a large population base of around 232 million people, making it the fourth most populated country in the world after China, India and the U.S. In recent years, Indonesia’s political stability and the government’s liberalisation of the economy coupled with sound fiscal and debt management have provided a conducive environment for the country to achieve robust economic growth.

*Bloomberg Consensus Forecast, July 2010

Factors Driving Indonesia’s Economic Performance

Despite the global economic slowdown in 2009, Indonesia was one of the few countries that managed to register a positive GDP growth of 4.5 percent on the back of resilient domestic demand. Domestic demand was driven by consumer spending, which accounts for 57.4 percent of GDP, and investment spending, which represents 23.4 percent of GDP. In the first half of 2010, GDP growth rebounded by 5.9 percent with consumer spending sustained at 4.5 percent and investment spending rising by 7.9 percent. The factors that contributed to the rapid GDP growth of Indonesia are:

Healthy consumer spending: Over the 2000-2009 period, consumer spending in Indonesia grew at a healthy rate averaging 4.1 percent per annum fuelled by higher disposable incomes amidst accommodative interest rates and manageable inflationary pressures. Consumer spending has also been supported by the rising urbanisation trend with the urban population ratio rising from 42 percent2 in 2000 to 51.5 percent2 in 2008. Meanwhile, the central bank kept its reference rate, the benchmark interest rate of Indonesia, unchanged at a historical low of 6.5 percent as Indonesia’s inflation rate moderated from 10.3 percent in 2008 to 4.9 percent in 2009 and 4 percent in the first half of 2010.

Strong Foreign Direct Investments: In view of its vast opportunities, Indonesia has enjoyed rising inflows of foreign direct investments (FDI), mainly in the mining, manufacturing and transportation & communication sectors. Total FDI into Indonesia amounted to US$34.4 billion3 over the 2005-2009 period. FDI in the mining sector was driven by higher commodity prices while the transportation & communication sector benefited from increasing urbanisation trends.

Robust commodity exports: Exports have also been an important source of growth for Indonesia, accounting for 43 percent of GDP in 2009. Indonesia’s major commodity exports include oil & gas and coal which contribute 17 percent and 12 percent respectively to total exports in 2009. Meanwhile, exports of manufacturing products were driven by machinery and transportation equipment which comprise 14 percent of total exports in 2009.

Political stability and economic reforms: Indonesia’s economic growth over the 2000-2009 period was also attributed to the country’s political stability and a series of successful economic reforms. After President Susilo Bambang Yudhoyono took office in 2004, a comprehensive set of economic programs were implemented, such as creating more jobs, addressing corruption issues and increasing infrastructure investment spending. Subsequently, Indonesia’s economy grew at a respectable average growth of 5.7 percent per annum during his first term (2004-2009). This economic performance has helped President Yudhoyono to secure a second term following a decisive victory in the 2009 general elections where he garnered more than 60 percent of the votes cast. The smooth running and decisive outcome of the 2009 general elections have cemented the country’s democratic credentials, underpinning the country’s political stability and policy continuity.

Healthy fiscal position: Due to its sound fiscal and debt management, Indonesia’s fiscal position has improved in recent years. The government maintained a fiscal deficit of less than 3 percent of GDP over the 2000-2009 period. Despite the global economic slowdown in 2009, Indonesia registered a prudent fiscal deficit of 1.6 percent in 2009 compared to 0.1 percent in 2008. Meanwhile, the government’s commitment to reduce public debt resulted in the public sector debt-to-GDP ratio declining significantly from 88 percent in 2000 to 28 percent in 2009, the lowest among ASEAN countries.

Stable currency: The Indonesian Rupiah was one of the best performing Asian currencies in 2009 with a gain of 19.5 percent against the U.S. dollar due to the inflows of foreign funds. On a year to date basis to 28 July 2010, the Rupiah appreciated further by 5.3 percent against the U.S. dollar. Over the same period, the Rupiah depreciated by 2.4 percent against the Malaysian Ringgit.

The steady accumulation of foreign reserves has enhanced Indonesia’s liquidity position and serves as a buffer against potential financial crises. Foreign reserves rose from US$29.4 billion in 2000 to a record high of US$78.8 billion in July 2010 driven mainly by healthy trade surpluses and capital inflows.

Table 1: Performance of Jakarta Composite Index

*Year to date as at 28 July 2010

Economic Outlook

Due to its large domestic demand base, Indonesia’s economic performance is envisaged to be more resilient than other economies in the event of a slower global economic environment. Looking ahead, Indonesia’s GDP growth is projected to rebound from 4.5 percent in 2009 to 5.8 percent4 for 2010 and 6.2 percent4 in 2011 on the back of resilient consumer spending and investment spending as well as strong global demand for commodities.

Domestic demand is also expected to benefit from an accommodative interest rate environment amidst manageable inflationary pressures. Indonesia’s inflation rate, which is driven mainly by food prices, is projected at 4.9 percent5 for 2010 and 6 percent5 for 2011. Nonetheless, the inflation rate is expected to remain manageable in the medium term amidst a stable outlook for the Rupiah.

The overall economy is well-positioned to benefit from the positive political landscape as the re-election of President Yudhoyono coupled with the appointment of technocrats to the cabinet is expected to ensure continuity of economic reforms.

Outlook for The Indonesian Market

Indonesia’s stockmarket is the third largest among ASEAN countries with a market capitalisation of US$261 billion as at 30 June 2010.

After registering a 114.7 percent return in Ringgit terms for 2009, the Jakarta Composite Index continued to be one of the best performing regional markets with a gain of 17.5 percent on a year-to-date basis to 28 July 2010 amidst robust economic activities. From 2006 to the 28 July of 2010, the Jakarta Composite Index registered a total return of 143 percent in Ringgit terms (163 percent in Rupiah terms) or a commendable annualized return of 21.4 percent.

In terms of valuations, the prospective Price-to-Earnings (P/E) ratio of the Jakarta Composite Index (JCI) is 15.2x based on 2010 earnings and 12.7x based on 2011 earnings as at 28 July 2010, which is comparable to its 9-year average P/E ratio of 12.5x. Selected stocks listed on the Indonesia market are supported by strong corporate balance sheets, sound fundamentals and fair valuations.

1 ASEAN countries excluding Vietnam: Malaysia, Singapore, Thailand and Philippines
2 World Bank
3 Bank Indonesia
4 Bloomberg Consensus Forecast, July 2010
5 Bloomberg Consensus Forecast, August 2010

Source: www.publicmutual.com.my a Malaysian-based website

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Indonesia, a Southeast Asian country that has nearly tripled its number of Facebook users over the past year, has finally eclipsed the United Kingdom as the second-largest Facebook market behind the United States. Its growth underpins Facebook’s emerging strength in Southeast Asia, a region has become strategic, rife with opportunities to push virtual goods and Credits.

As the world’s fourth more populous country, Indonesia promises to be one of Facebook’s key markets for years to come with 29.4 million users. Spread out across thousands of islands, Indonesia is a patchwork nation; the country’s official language Bahasa grew out of centuries of trading between hundreds of ethnic groups. Only a small minority of people in the country actually speak Bahasa as their mother tongue.

Facebook is addicting

Initially when Facebook’s growth began accelerating, Muslim clerics debated the morality of the service, and were concerned that the social network would facilitate gossip and flirtation. The country’s leading Islamic council signaled that they were interested in regulating the social network the way they did with its predecessors Myspace and Friendster.

Nevertheless, Facebook continued growing, adding more than 17 million users in a single year and politicians and leading religious figures have come to embrace the site. The country’s president Susilo Bambang Yudhoyono has more than 480,000 thousand fans for his Facebook Page. Some of the country’s top Muslim clerics have started Pages too, like Chairul Tanjung, who sits on the board of Indonesia’s highest religious authority, the Indonesian Ulema Council.

Overall, Indonesia has a fairly young population and on Facebook, the 13 to 25 age groups are over-represented compared to the makeup of the company’s top 16 markets (see below).

Facebook also boasts 67 percent Internet penetration among the country’s 45 million Internet users, according to the country’s ISP association and data on the company’s users there. In addition, the country has a growing number of people accessing the web via mobile devices — about 9 million, according to Onno Purbo, a longtime information technologies activist in the country.

So Facebook’s mobile apps and 0, it’s low-bandwidth mobile site, will play an increasingly important role there. While the iPhone leads Facebook’s mobile presence globally, in Indonesia, Nokia is the device manufacturer with dominant share in the country. Blackberry and Android are also gradually closing in.

Anecdotally, developers tell us that social gaming is an important factor powering Facebook adoption in the region. And Facebook has moved to capitalize on that through a recent deal with Malaysian payments company MOL, which also has a presence in Indonesia.

To read more, and view data on Facebook’s growth and demographics in over 160 countries around the world, please see Inside Facebook Gold.

Source: www.insidefacebook.com

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Er Audy Zandri, The Jakarta Post, Shanghai

The end of the World Expo 2010 Shanghai China marked a significantly brighter new beginning for Indonesia, which snatched an award at the event and realized tons of other goals.

Considered a must-visit pavilion for millions of visitors, the Indonesian Pavilion recorded a total of 8,150,230 visitors by the final day of the expo on Oct. 31, 2010, almost triple the initial target and overshooting the second estimation by a million.

It was this popularity that prompted Zou Ge, a spatial architect, to travel all the way from Beijing to Shanghai to visit the pavilion on Oct. 30. Captivated by its open concept, he and his spouse, Zhao Na, were surprised by the fact that he was the eight millionth person to visit the bamboo pavilion.

He had heard of all the world famous tourist destinations, including the Island of the Gods and the incomparable natural scenery it has to offer, but winning an all-expenses paid trip for two as a result of his curiosity was just too good to be true. The couple will also receive free accommodation at five-star Hotel Borobudur Jakarta and Kartika Plaza Hotel Bali sponsored by Artha Graha and two Jakarta-Denpasar roundtrip tickets from Garuda Airlines.

While the seven millionth visitor, Tang Hanhua who visited with his new wife Wu Wawa, was recorded at the beginning of October, the more than a million addition to the visitors’ record at the end of the month is nothing but extraordinary.

Due to this also, stated the expo committee, the Indonesian Pavilion placed fourth among the best five pavilions at the expo in terms of popularity and visitor numbers.

“With too many misperceptions about our country, Indonesia could be one of the least understood countries in the world. The time has come for us, Indonesians, to tell our story to the world, to let everybody know the real Indonesia,” said Indonesian President Susilo Bambang Yudhoyono in a speech during his first and only visit to the Indonesian Pavilion on the morning of Oct. 26.

Together with First Lady Kristiani Herawati, the President was on a two-day trip to Shanghai for trade meetings and a business forum, during which he witnessed at least 27 signings of memorandums of understanding (MoU) between up to 60 Indonesian and Chinese companies in various industries ranging from mining, agriculture, fisheries, telecommunication, shipyard, financial services, manufacturing to 3D animation.

Various business forums were held by Indonesian ministries and different industry players at the Indonesian Pavilion, such as a business forum held by the Coordinating Economic Minister’s Office in May, a business forum by Mayora, an investment forum by the Indonesian Investment Coordinating Board and the Finance Ministry in June, a business forum by the Indonesian Embassy in China, the Indonesian Coffee Festival by the Agriculture Ministry in July and a business forum by Bintan Resort in August.

Business forums were also held by Gajah Tunggal, Maritime Affairs and Fisheries Ministry, Sinar Mas, the Energy and Mineral Resources Ministry, the Communications and Information Technology Ministry, Artha Graha, West Kalimantan province and the Maspion Group in September, not to mention an investment forum by the Public Works Ministry at the end of the month.

Before the signing of all the MoUs on Oct. 25, different forums were also held by Mustika Ratu, BNI and the Industry Ministry, in addition to a Tropical Fruit Festival by the Agriculture Ministry in mid-October.

In addition to business goals, one undeniable achievement of the Indonesian Pavilion is how it managed to introduce different authentic Indonesian food dishes — and beverages — at the expo. Even President Yudhoyono, for example, jokingly opened the business forum on Monday evening by urging attendees to visit the pavilion and “enjoy our world famous nasi goreng.”

“Our pavilion is really famous, especially for its authentic Indonesian food,” he added.

In Oct. 20, the pavilion also flew two winners of the Nasi Goreng Competition to Shanghai. Arsita Laksmi Paramita, with her nasi goreng recipe called Nasi Goreng Iwak Pe, flew to Shanghai with second prize winner Yustiana to cook in front of a live audience on Oct. 24, allowing the public to taste the winning recipe firsthand.

Over the six-month period, the pavilion’s restaurant, Enak, sold more than 67,000 plates of nasi goreng, 46,000 plates of fried noodles, 40,000 portions of nasi campur and 350,000 sticks of chicken satay and took in US$2.7 million, making it the fourth most favorite restaurant at the expo after those of Germany, Japan and France. Its kopi luwak at RMB380 (US$57) per cup was also a well known beverage at the expo.

In addition to milestone visitors winning roundtrip airline tickets to Indonesia, the last visitor to the pavilion on the last day of the expo, school teacher Zhu Zhao Hui, was also presented with a gift of a free return ticket to one of 33 destinations in Indonesia provided by Garuda Indonesia Airline.

What all Indonesians should be proud of was how the idea behind an open pavilion made of bamboo, with original artifacts on creative display, worked like a charm. On Oct. 30, it was announced that the massive structure was the winner of the Bronze World Expo Award for Creative Display in the 4,000-meter Self-Built Pavilions category after Saudi Arabia and Japan, making Indonesia the only developing country to receive such an award.

The Bronze award winners for the Theme Development and Pavilion Design categories were France and Spain.

Only 34 of the total 192 country pavilions received these prestigious awards. The award evaluates each pavilion’s interior design, exhibit presentation and narrative relevance to the World Expo 2010’s overall theme of “Better City, Better Life”, conducted by nine experts in architecture and urban planning led by the International Exhibitions Bureau Awards Committee.

“This is totally unexpected, a big surprise for every one of us,” said Indonesian Pavilion exhibit display designer Pincky Sudarman upon receiving the award at the World Expo Center.

Despite the success, Indonesian Pavilion officials have yet to confirm participation in the next world expo to be hosted by Milan, Italy, in 2015 with “Feeding the Planet, Energy for Life” as its theme.

The World Expo 2010 Shanghai China recorded 73,084,400 expo visitors in total by Oct. 31. There is no news yet on which pavilions will be left standing after the expo.

The closing ceremony on Oct. 31 was attended by different world leaders, including Chinese Prime Minister Wen Jiabao, Sri Lankan President Mahinda Rajapaksa and Nepalese President Ram Baran Yadav. UN General-Secretary Ban Ki-moon also attended the event.

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Data from the agency show Indonesia`s exports in the first nine months of 2010 grew 38.27 percent to US$110.81 billion from the corresponding period last year.

The Central Statistics Agency (BPS) has projected Indonesia`s exports may reach US$150 billion or above this year.

“In the January-September 2010 period alone, our exports reached US$110.81 billion. With exports from October to December projected to average US$12-13 billion, our exports may reach US$150 billion or above at the end of this year,” BPS Chairman Rustam Heriawan said here on Monday.

He said in the January-September 2010 period the export of industrial products grew 34.16 percent, farm products 15.72 percent and other mining products 41.95 percent compared to the same period last year. The main markets for Indonesia`s exports in the first nine months of 2010 were Japan, the United States and China. Over the period Indonesia`s exports to Japan were valued at US$11.79 billion, the United States US$9.68 billion, and China US$9.31 billion.

Indonesia-Brazil Trade Projected to Reach US$2,5 Billion

Ivan Ramalho, the Brazilian Development, Industry, and Foreign Trade deputy minister, said his office had projected trade with Indonesia to reach US$2,5 billion this year. He is optimistic that the target is achievable as both
countries’ trade had already reached US$2 billion. However, according to
Indonesian statistics, the total trade value has not reached that amount yet.

Cocoa tree

according to Gusmardi Bustami, the Trade Ministry’s International Trade
Cooperation director-general, the total trade so far has not reflected the real
potential. Both countries’ trade can still be improved because Indonesian and Brazilian products complement each other.

Based on the Trade Ministry’s data, Indonesia’s non-oil and gas exports to
Brazil last year was valued at US$ 888 million. Meanwhile, in January to July
this year, the export value was US$ 788 million.

So far, Indonesia is still experiencing a trade deficit against Brazil. Last
year, the deficit was US$ 198.5 million. As of the first seven months this year,the deficit was still US$ 147.3 million. Some products exported to Brazil include textile products, footwear, and rubber products like tires.

Bali Moniaga, the former Indonesian Ambassador in Brazil, said the Brazilian
market is full of potential. Brazil is the eighth richest country in the world
with 199 million people. “Half of them are in the upper-middle group,” said
Bali.

Some of Indonesian exports that can be sent to Brazil include palm oil, rubber and cocoa. Three years ago, Indonesia’s palm oil exports were worth only US$60 million per year. This amount is still below that of Malaysia. However, Indonesia’s palm oil exports to Brazil now has reached US$300 million per year.
Palm oil is used in industrial raw materials like food and cosmetics. In addition, Indonesia has an opportunity to develop rubber exports.

Brazil will not plant rubber trees as it can endanger the Amazon forest. The
same goes for cocoa, because Brazilians are fond of chocolate. “Their chocolate consumption is the fifth highest in the world,” he said. Besides these products, opportunity is still open for the automotive, electronic, and home furniture industries.

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Indonesia is on track to receive record foreign direct investment this year: in the three months through September, FDI rose nearly 14 per cent from a year ago to $4.4bn, and the full-year figure will probably beat the official target of $18bn.

But the head of the OECD is encouraging deeper reforms. “Indonesia is open for business, but we believe it could do more to realise its full potential as host to foreign investment,” said Angel Gurría, who was in Indonesia on Monday, launching a report on Indonesia’s investment prospects.

Indonesia’s third-quarter FDI performance wasn’t just about quantity – the figures also showed a shift from commodity exports to domestic demand. The top foreign investment sector was real estate and office buildings, with 33 deals worth $800m, the country’s Investment Coordination Board said. The leading foreign investor was the UK with $1.3bn pouring into 86 projects.

That reflects the country’s huge consumer market of 237m people, as well as its macroeconomic stability. GDP growth was 4.5 per cent in 2009 and is forecast at least 6 per cent for 2010. The capital markets are among the best performing in the world, with investors encouraged by political calm, fiscal reforms and falling inflation.

HSBC Asia analyst Wellian Wiranto says that, in spite of Indonesia’s shortcomings in infrastructure and labour market flexibility, the country is already attractive:

At the margin… enough good things seem to be in the pipeline domestically to capture the growing attention of foreign investors.

It looks like we are going to see a good year for Indonesia – finally.

But Gurría encouraged the government to take additional measures to lift growth. He stressed the need to cut subsidies for fuel and electricity eating up roughly a fifth of the entire budget, or more than $15bn a year. He said the so-called “negative list” – of sectors partially closed to outside investors – should be dropped, arguing:

Indonesia’s recent growth performance has been impressive, but there is no room for complacency. The current environment offers Indonesia a unique opportunity to embark on a long period of sustained increase in living standards.

Gurría added that raising tax income and lowering subsidies would also free up billions of dollars for crumbling infrastructure and weak education and healthcare sectors. Following tragic natural disasters last week, his words are another reminder of the challenges facing Indonesia.

Source: ft.com/beyondbrics

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I have been to almost all ASEAN countries except for Myanmar and Brunei, and to be honest, iIfound no taxi company in cities of those countries as comfy and reliable as Blue Bird taxi of Indonesia. Singapore is very close behind, but their taxi fleet are mostly outdated, diesel-powered, and noisy. Bangkok is in the third rank, but I got lost in Bangkok more than 3 times on taxi. And it is not really easy to spot which taxi is more reliable than others.

I’ve been to 18 different countries in my life, and I would say that Blue Bird (and Silver Bird) is arguably one of the world’s best taxi companies. Maybe, one day, National Geographic team or Discovery Channel, or BBC Knowledge should do a research/survey on this.

Blue Bird taxis have the blue bird marking on the top of the windshield. They are blue, and in Jakarta and other cities, they also carry the Pusaka name. In Bali, they go by Bali Taxi. They also operate in Lombok, I just dunno the name.

Silver Bird with MB

With regular Blue Bird, you usually save money over other taxis because they take you where you are going without any hassles and the drivers are courteous.

Silver Bird with Toyota Vellfire

As for other Indonesian taxis? Many of them are very good too, and leave their counterparts in other countries behind.

GNFI will also cover some of them.

Photos Credit: Blue Bird, Toyota

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Garuda persuaded to open route to Munich

The operator of Munich airport asks Garuda Indonesia to serve Jakarta-Munich route following the state airline’s plan to fly to Germany.

Floren Potsch, Marketing and Traffic Development Business Division Aviation at Munich Airport, revealed the operator had expressed this to Garuda.

“We have talked to them [Garuda] to fly to Munich. Next week, we will also still discuss the possibility,” Floren said yesterday, when the Munich delegation, together with Singapore Airlines, promoted Munich as the business and tourism destination city.

Singapore Airlines has recently opened its direct flight route Singapore-Munich in March 2010. According to Potsch, Munich airport was highly profitable for any airline flying to the city.

“Airlines flying or opening routes to Munich record remarkable and unprecedented profits. Just look at All Nippon Airways and Singapore Airlines.”

Munich airport is the second busiest airport in Germany, with the passenger traffic reaching 32.7 million people last year.

In the meantime, Frankfurt airport was the busiest, with the passenger traffic reaching 50.9 million passengers in 2009.

Potsch disclosed the flight market in Frankfurt was indeed lucrative, thanks to the high number of airlines flying from and to the city.

The upbeat aviation business in Frankfurt is also attributable to the relocation of Lufthansa headquarter from Berlin to Frankfurt.

However, the operator of Munich airport seems have to try harder to persuade Garuda since the state airline once expressed its plan to fly to Frankfurt after the European Union lifted its travel ban against the airline.

On the other hand, Garuda may find that it won’t be easy to realize the plan since the state airline has to compete with Asean airlines, such as Singapore Airline, Malaysia Airlines, Thai Airways, and Vietnam Airlines.

Thai Airways and Singapore Airlines have been tightly competing to open routes to Frankfurt and Munich.

The two airlines have provided 28 roundtrip direct flights a week to Frankfurt and 14 flights to Munich.

Hub airport Separately, Director of Strategy and Information Technology (IT) at Garuda Elisa Lumbantoruan exposed the company had not yet decided on whether it would fly to Frankfurt or Munich.

“What is certain, Garuda has a history of flying routes to Frankfurt,” she said.

She added the state airline was conducting a review based on the market conditions of the destination cities and the functions of the city airports.

“We have to know for sure if the airport is a hub airport that has wide networks to other cities,” inserted Elisa.

Elisa continued Garuda had also received a request from an airport operator in New Zealand to fly to the country. David Lau, Genera Manager of Singapore Airlines to Indonesia, welcomed Garuda’s plan to fly to Germany.

“If airlines, including Garuda, keep flying to cities in Germany, it will bolster the market, which is good for the industry.”

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Mbah Maridjan (“Grandfather Maridjan”) (1927 – 26 October 2010) was the spiritual guardian of the Indonesian volcano Mount Merapi. He was killed at the age of 83 by a pyroclastic flow that hit the village of Kinahrejo during the 2010 eruption of Mount Merapi.

Maridjan was the son of the previous guardian. He was appointed to the palace staff of the Sultan of Yogyakarta, Sri Sultan Hamengkubuwono IX, in 1970 and was given the title of Mas Penewu Suroksohargo. He replaced his father as gatekeeper in 1982.

Merapi Volcano in her peaceful mood

The spiritual guardian of the mountain is believed by local people to have the power to speak to the spirits of Mount Merapi, which the Javanese consider to be a sacred mountain. Maridjan led ceremonies to appease the spirits of the volcano by presenting them with offerings of rice and flowers in and around the crater. One of his most important duties was the performance of the annual Labuhan sacrificial ceremony dedicated to the spirits of Mount Merapi. A procession from the royal palace on Yogjakarta led by the gatekeeper sacrifices to the volcano spirits a set of ritual offerings including textiles, perfume, incense, money and, every eight years, a horse saddle.He described his job, for which he was paid $1 a month, as being “to stop lava from flowing down. Let the volcano breathe, but not cough.”

Maridjan was known for his dedication and loyalty to the king and became an Indonesian icon. He lived only about 5 kilometres (3.1 mi) from the peak in his home village of Kinahrejo. Many villagers believed that he would be warned in a vision if an eruption was imminent.In May 2006, he refused to leave his village despite a mandatory evacuation order after scientists warned of an imminent eruption. He went with fifty other men to the village mosque when the volcano began to erupt. Following his example, a hundred other families also refused to evacuate.

Merapi Volcano, world's most active volcano

He was badly burned in a subsequent blast and spent five months in hospital after being rescued from his collapsed house. He became a popular hero because of his refusal to leave his village and his insistence that it was his duty to discharge his responsibility for the welfare of the people. He said that “the people of Kinahrejo feel that it was their destiny to be born to be a fortress to protect the welfare of the kraton (royal palace) and the people of Mataram (central Java).”During an interview in 2006, he said, “Everybody has their duty. Reporter, soldier, police, they have their duty. I also have a duty to stand here”.

He is gone,..for good

He again refused to evacuate prior to the 26 October eruption in 2010, telling a friend that he could not leave because he had a responsibility, and that because “my time to die in this place has almost come, I can’t leave.” Thirteen other people, who were in his home trying to persuade him to leave, were killed along with him when his house was hit by a pyroclastic flow. Only the mosque in his village was left standing. Maridjan’s body was found in a praying position; he was thought to have been killed instantly by the 1,000-degree Celsius cloud of gas and ash.

The Yogyakarta Palace subsequently confirmed his death. Gusti Prabukusumo, the brother of Sultan Hamengkubuwono X, said that they had “known long before it happened that Mbah Maridjan would be taken by Merapi. Now that he’s gone, we have to choose a new guardian soon”. Maridjan was survived by his wife and five children.

Good bye, Mbah Maridjan!
May God protect your soul.

Source: Wikipedia

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Russia has offered Indonesia to cooperate in the nuclear field. The offer stipulates the construction of the first nuclear-powered electric power plant in the country. Russian experts believe that Indonesia, being the country of many islands, may show interest in Russia’s state-of-the-art technology of building floating nuclear power plants.

For the time being, it goes about the construction of a conventional nuclear power plant on Indonesia’s largest island, Sumatra. The deal with Indonesia may trigger the speedy development of the Russian nuclear industry as Russia may obtain prospects for entering the markets of other Asian countries such as China, Turkey and Vietnam.

“Taking into consideration the fact that Indonesia is a large archipelago, it may go about the construction of floating nuclear power plants. I believe that this project will be one of the arguments that will attract Indonesia’s attention and the country will accept Russia’s nuclear cooperation offer,” State Duma official Igor Igoshin said.

In the beginning of July, Russia launched the head floating power block “Akademik Lomonosov” in St. Petersburg. The block will become the first element of the world’s first-ever floating nuclear powered station. The station will hold the capacity of producing electric power and heat for 200,000 people. If the station is used for processing sea water, it will be able to produce 240,000 cubic meter of fresh water a day.

Floating Nuke plant (NYtimes.com)

SharePrint version Font Size Send to friend The market of desalinated water was evaluated at $3 billion in 1995. The market value will grow to $12 billion a year by 2015, according to the IAEA. The shortage of fresh water in the world will increase to 1.3-2.0 trillion cubic meters a year, according to the UN. The basic consumers of desalinated water are situated in the Middle East (70%), in Europe – 9.9%, in the USA – 7.4% (presumably California and Florida), in Africa – 6.3% and in Asia – 5.8%.

For the time being, it is too early to ascertain that Indonesia will agree to cooperate with Russia in the field of the nuclear industry. Indonesia has been planning the construction of the nuclear power plant for many years, but the government still tries to win the support of the population for the project.

Indonesia does not conduct any direct talks on the matter yet in spite of the fact that the IAEA approved the project and the construction locations have been set. Russia, being one of the world leaders in the nuclear industry, hopes to take part in the tender for the construction of the nuclear power plant in Indonesia, and the project will be launched sooner or later.

Indeed, Indonesia and Russia have much more in common than it may seem at first sight. Russia is the largest country on the planet, whereas Indonesia is the world’s largest island state. It has more than 13,600 islands of which over 6,000 are inhabited.

Like Russia, Indonesia presumably exports oil and gas. Indonesia used to be the world leader in terms of the production and sales of liquefied natural gas. The nation’s share in this business has been declining during the recent years, having dropped from 20% in 2002 to 16.7% in 2005. However, it still remains a major supplier of liquefied gas in the Asian-Pacific region.

It is worthy of note that Indonesia may become the world leader in geothermal energy. There are from 500 to 600 volcanoes in Indonesia (129 active volcanoes). The country holds up to 40% of world’s reserves of underground heat that can be used in the energy industry.

The development of geothermal branch of the energy industry may considerably reduce the consumption of oil already during the forthcoming five years. By 2025, Jakarta plans to ensure the production of geothermal energy of 9,000 megawatts which will save four billion of barrels of oil.

Sergey Nikolayev
Bigness

Source: www.pravda.ru

Popularity: 4% [?]

Travel industry leaders gathered in New Delhi on Thursday, October 14, 2010, to attend the latest edition of the World Travel Awards for Asia and Australasia.

The annual awards recognize best destinations, hotel, airlines, villas, resorts, golf courses, travel brands and tourism promotion organizations.

Winners were selected via a voting process among colleagues in the travel industry and consumers in which thousands of votes were cast.

Now in its 17th year, World Travel Award winners from Asia and Australasia go automatically go on to the World Travel Awards 2010 Grand Final in London, held each year before the World Travel Market scheduled to begin on Sunday, November 7, 2010.

Bali Scores High

The Bali travel products named as winners in their respective categories in New Delhi were:

• Asia’s Leading Beach Resort – Samaya Resort, Bali

Samaya Resorts- Bali (www.baliwww.com)

• Asia’s Leading Luxury Resort – Ayana Resort and Spa, Bali

Ayana Resorts - Bali (www.interlinestay.com)

• Asia’s Leading Luxury Villa – Ayana Resort and Spa, Bali

Ayana Resorts Bali (www.universeofluxury.com)

• Indonesia’s Leading Golf Course – Pan Pacific Nirwana Bali Resort, Bali

Pan Pacific Golf Course (www.baliwww.com)

Related Link: List of Asia Region Winners of World Travel Awards http://www.worldtravelawards.com/

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