[Marinir] Indonesia Digest; No: 26.05 ; 24-07-'05

Yap Hong Gie ouwehoer at centrin.net.id
Sun Jul 24 19:18:04 CEST 2005


INDONESIA DIGEST

Indonesia's complex Issues in a Nutshell
By: Ms. Wurastuti Sunario
Published by: TBSC-Strategic Communication
No.: 26.05 - Dated: 24 July 2005
In this issue:

MAIN FEATURE:
BALI TO EXPERIENCE POWER CRISIS IN 2007 ?

NEWS AND BACKGROUND:

1.      Religion, Culture and the Environment:
·         Asians and Europeans meet in Inter-faith Dialogue

2.      The Economy, Trade and Industry:
·         Indonesia to Cut Crude Oil Use
·         New Oil Refinery at Tuban, East Java

3.      Politics and Security:
·         Informal Peace agreement between government and GAM rebels
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MAIN FEATURE:

BALI TO EXPERIENCE POWER CRISIS IN 2007?

Although everyone agrees that Bali needs more power, the question that 
remains is where will the island get its power from? Or, where, indeed, can 
a designated Bali power plant be built, if at all? At the moment, Bali 
receives power from Java on the Java-Madura-Bali power grid. The projection 
that the island must be provided with an increase of 60 megawatt (MW) per 
year, has so far not been met, while demand for power is constantly rising.

Today Bali receives 535.12 MW, whereas, it is projected that the need for 
power in 2007 will rise to 700 MW. Yet, a solution as to how this will 
materialize is nowhere in sight, reports the Kompas daily of 20/7.

A number of attempts and studies have been made for the purpose. A study 
made by the University of Udayana on currents and waves of Bali's 
surrounding seas as potential to generate electricity has been 
disappointing, as these can provide a maximum of 1 MW only.  Further, a 
plant to be built near the Lovina Beach near Buleleng  in north Bali, has 
been protested by the local population. Similarly wells drilled at the 
Bedugul forest reserve to seek electricity generating heat, has been 
questioned by the community.

Meanwhile, PT PLN calculates that during peak periods, and including 
reserve margins, Bali's needs for power already nears 700 MW, whereas 
present supply is only 535.12 MW. The company further calculates that each 
year until 2015 Bali needs an additional 60 MW.

Asked on the subject, recently re-elected Bali Governor, Dewa Made Beratha, 
told reporters that no decision has yet been made. Bali has stringent 
environmental regulations in place, where the supply of power must take into 
consideration spatial planning and the environment.   While, Culture and 
Tourism Minister, Jero Wacik, when asked, said that he was not too concerned 
that this will impact on tourism in Bali (Kompas 21/7), since, the Minister 
said, all hotels and entertainment establishments already have their own 
gensets  and have been asked to save energy.

Tourism observer, Dyak Mulahela, on the other hand, asked that the 
government not disregard the problem since, although large hotels do have 
gensets, not so the many smaller hotels dotting the island.

Bali is 563.286 sq. km.large, and has a population of 3,351 million people. 
In 2005 Bali expects to receive more than 1.5 million tourists.  Until 2004, 
an approximate 96 villages have yet to receive electricity supply. Tourism 
is still the mainstay of Bali, as well as the driving force for most of its 
economic activities. Although numbers have increased dramatically during the 
past months, however, tourism activities and receipts have not yet succeeded 
in raising Bali's economy out of the slump experienced post-Bali bombing in 
2002, said Governor Dewa Beratha, at a recent tourism conference.
(Source: Kompas, 20/7/05)                            (Tuti Sunario)
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NEWS AND BACKGROUND

1        Religion, Culture and the Environment:

Asians and Europeans meet in Inter-faith Dialogue

Asian and European delegates attending the ASEM Interfaith Dialogue in Bali 
on 21-22 July recently, issued at the end of their deliberations, the "Bali 
Declaration on Building Interfaith Harmony within the International 
Community".

In it, they declared their profound conviction that the various faiths and 
religions existing in the ASEM member countries are advocating peace, 
compassion, and tolerance among mankind. That the promotion and protection 
of human rights and fundamental freedoms including the right of individual 
to choose religion or faith, can contribute to upholding respect for the 
diversity of faiths and religions, essential in combating ideologies based 
on extremism, intolerance, hatred, and the use of violence.
Furthermore, it is more important than ever for people of different 
religions and faiths to stand united and make it clear that they will not 
allow use of violence to divide them. People must all speak up against those 
who use religion to rationalize terrorism and murder.

Peace, justice, compassion and tolerance need to be cultivated and nurtured 
to help create an environment conducive to building harmony within the 
international community and people.

The conference resolved to continuously bring the importance of promoting 
interfaith dialogue to the attention of governments and communities, and 
translate the shared values of peace, compassion and tolerance into 
practical actions within communities.

These will be done through activities in the fields of Education, Culture, 
Media , Religion and Society.

Earlier, in his Keynote Address, President Yudhoyono, expressed that "We all 
came to this Dialogue because we prefer to live in a community rather than 
in a divided world." "This restless, volatile world calls for a more 
assertive role on the part of religious leaders and scholars. Millions of 
people over the world look to you for guidance, direction and inspiration. 
You have much to contribute to the well-being of our world".

Firstly, the President continued, this Dialogue can help bridge the lack of 
understanding or misunderstanding among the different faiths. Secondly, the 
Inter-faith Dialogue should empower the moderates, so that their voices will 
be become a major force in the dynamics of our communities. "Moderation 
means we have to refrain from imposing one's views on others and avoiding 
the use of violence. Moderation calls on us to respect the rights of others 
and respecting others as much as you respect yourself.- Moderation calls for 
an inclusive approach and a total devotion to peace and tolerance". A 
healthy Inter-Faith process has endless possibilities, and our success in 
doing this can spell the difference between peace and war, between progress 
and regression, between growth and decay, concluded the President.   (For 
details see www.deplu.go.id)

2.      The Economy, Trade and Industry:

The Coordinating Ministry for Economic Affairs issued the following articles 
in its bulletin of 18 July:

·         Indonesia to Cut Crude Oil Use

With the world market price of oil at a record $60 per barrel, Indonesia 
plans to cut by half its crude oil consumption and increase its use of 
liquefied natural gas (LNG) and coal by 2015, senior economic minister 
Aburizal Bakrie said.

The government's energy diversification and conservation campaign aims to 
reduce domestic crude oil consumption from the present 60% of the country's 
total energy mix to 30% within 10 years, Bakrie was quoted as saying by Dow 
Jones.

The government will offset that reduction by doubling its proportion of LNG 
and coal use from current levels of about 5% and 15%, respectively, during 
the same period.

"We've changed our thinking," he said. "The government will no longer use 
energy [sources] that are expensive and not widely available in Indonesia 
and [instead] we're going to export more oil."

Indonesia is South East Asia's only member of the Organization of Petroleum 
Exporting Countries (OPEC), but dwindling investment in oil exploration has 
led to falling output and has made the country a net oil importer.

The country's oil imports cost $1.27 billion in May, the latest official 
statistics indicate, and in June, Indonesia's crude oil output declined 
slightly to 927,800 barrels per day from 968,700 bpd in May, falling short 
of Indonesia's OPEC quota of 1.425 million bpd, a source from the Mines and 
Energy Department said.

Bakrie said key to the energy plan is diverting gas reserves that state oil 
firm Pertamina and US petroleum giant ExxonMobil will extract from the Cepu 
oil block for domestic use rather than for export.

"It is important to watch how large the reserves and production of gas that 
can be produced out of the Cepu Exxon field [because] Cepu has a lot of gas 
that can be used" on Java, he said.

Indonesia and Exxon last month successfully concluded talks allowing the US 
company to tap the Cepu block, which holds some 600 million barrels of crude 
oil as well as an unspecified amount of LNG.

The government is also hatching a national energy-conservation policy that 
aims to shrink energy consumption by 20% annually beginning this year, the 
minister said.

·         New Refinery at Tuban

The government will build the country's 10th oil refinery at Tuban, East 
Java in anticipation of output from the Cepu block, The Jakarta Post 
reported.

"The government has decided that a refinery in Tuban will be built when oil 
exploration
and exploitation are successful in Cepu, Central Java and in the Jeruk 
field, south of the island of Madura" President Susilo Bambang Yudhoyono 
said.

By developing the refinery, state oil and gas firm PT Pertamina will add to 
its numbers of fuel depots to improve domestic fuel distribution, he said.

Mines and Energy Minister Purnomo Yusgiantoro said the refinery is expected 
to have a capacity of between 150,000 and 200,000 barrels of oil per day, 
sufficient to process the output from Cepu, expected to reach 170,000 bpd at 
its peak, and the output from Jeruk, estimated at 50,000 bpd. Indonesia has 
nine large and small refineries with a total processing capacity of nearly 
one million bpd.

Meanwhile, the oil and gas regulatory body BP Migas has requested lower 
import duties on imported capital goods, such as machinery and materials, to 
encourage the building of expensive facilities such as refineries and fuel 
depots across the archipelago.  The Finance Ministry is looking into the 
request.


3.      Politics and Security:

·         Informal Peace agreement between government and GAM separatists

The Indonesian government and the separatist Free Aceh Movement (GAM) have
reached a peace deal to end the 29-year insurgency in the tsunami-devastated
province, Communications Minister Sofyan Jalil confirmed on Sunday 
(17/7/05).

On Saturday, negotiators from both sides said that they had reached a 
tentative agreement to end one of the world's longest-running wars.

The draft accord, which hinged on allowing the separatist GAM to form its 
own local political party, was sent to Jakarta to receive the approval from 
President Susilo Bambang Yudhoyono.

The two sides are to initial a deal, that is seen as the best chance yet of 
ending the three decades of fighting that has killed 15,000 people in the 
province of Aceh. The peace accord is expected to be signed on 15 August at 
a formal ceremony in the Finnish capital, Helsinki. It will allow the 
separatists to field individual candidates in local elections next April. 
The government has also undertaken to change a law banning local political 
parties - a key rebel demand - within 18 months.

The draft agreement, among others, provides for the withdrawal of most of 
the 40,000 Indonesian troops and paramilitary police deployed to the 
province, as well as the disarmament of the 5,000-strong guerrilla force on 
the side of GAM.

This process will be overseen by about 250 European Union observers and at 
least 100 monitors from the Association of Southeast Asian Nations (ASEAN).

In Jakarta, President Yudhoyono said that GAM rebels will be given three 
months to disarm. He made the comments before the draft agreement was 
announced.

"If the conflict is declared over, then within about three months GAM will 
be expected to hand over its guns which would then be destroyed," Yudhoyono 
told reporters.

The peace process was restarted immediately after the December 26, 2004 
quake and tsunami disaster, when both the Indonesian administration and the 
Aceh government-in-exile in Sweden came under intense international pressure 
to end the long-running
armed insurgency.

In the latest development, according to SCTV's Liputan6.com, President 
Yudhoyono affirmed on 17 July that the Government will not allow GAM to form 
a local party. "Former GAM members will be accommodated through a national 
party in accordance with the Law on the Establishment of Political Parties," 
said the President. The President also confirmed that he had received the 
results of informal negotiations in Helsinki, Finland, between the 
government and GAM. 97% has been completed. And the results are quite 
satisfactory, said Yudhoyono.


For your comments or further inquiries, please e-mail to" 
tbsc-strategy at indo.net.id

 



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