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Thursday, 03 June 10
INDO GOVERNMENT TRIES TO CALM BUSINESSES FEARS OVER FOREST - CLEARING MORATORIUM
 The Jakarta Globe reported that, as producers of coal and palm oil continued to howl, the government on Tuesday offered reassurances that the development of the nation’s industries and power infrastructure would not be threatened by the moratorium on deforestation announced during the president’s visit to Oslo last week.
Meanwhile, businesses complained about the moratorium, saying there were not consulted or even informed, and warned of falling coal and palm oil output, as well as the effect on the investment climate.
Agus Purnomo, head of the National Climate Change Council, clarified how the government would treat companies with existing permits to develop natural forests and peatlands after worrying businesses on Monday with comments that some of the licenses would be revoked.
On Tuesday, he explained that license holders who had already initiated work on their concessions could continue, while those who did not must relocate but would be compensated with permits for other sites.
“Our goal is to save the remaining primary natural forests and peatlands, not to make life difficult for everyone,” Agus said.
He added that the government would provide additional information to permit holders regarding their concessions within the next six months.
Meanwhile, Coordinating Minister for the Economy Hatta Rajasa said construction of new power plants and other small-scale developments would continue despite the moratorium.
“Sectors that only require small-scale land will still be allowed to continue operating, such as sectors related to infrastructure, meaning power plants,” Hatta said.
He also responded to concerns that the moratorium would threaten plans to secure the nation’s food supply through agro-development, including the massive food estate planned for Merauke, Papua.
“The new scheme will not affect our food and commodity supply because it will only cover primary forests, and there are about seven million hectares of land outside of these forests that can be used for fulfilling our requirements,” he said.
President Susilo Bambang Yudhoyono last week agreed to a two-year moratorium on the clearing of natural forests in exchange for $1 billion in financial compensation from Norway as part of efforts to fight climate change. Indonesia ranks third globally in carbon emissions, mostly from deforestation.
The Indonesian Coal Producers Association (APBI) warned on Monday that the moratorium could cut production, even as national coal demand is expected to double over the next five years. Bob Kamandanu, chairman of the group, told Reuters that the country’s new environmental laws were the “biggest issue facing the industry” in Indonesia, the world’s largest exporter of power-station coal.
Similarly, the Indonesian Palm Oil Board (DMSI) said the moratorium could cut the industry’s expansion rate in half over the next decade.
On Tuesday, Didiek Goenadi, a senior official with Investment Coordinating Board (BKPM), said forests and peatlands that hold large carbon reserves can still be preserved while giving planters an option to swap out to degraded land, Reuters reported.
“We can help save forests and achieve our target of 40 million tons of crude palm oil by 2020. It is achievable,” Goenadi said.
The Indonesian Chamber of Commerce and Industry (Kadin) complained on Tuesday that the government did not give the business community advance warning of the moratorium, and said that such unpredictability could hurt the nation’s overall investment climate.
“We just knew about the decision in Oslo from the media. There was no publication at all before it,” said Adi Putra Tahir, Kadin’s acting chairman.
Adi said the chamber did not necessarily oppose the moratorium, and noted potential economic benefits derived the climate change fight. But he questioned the impact on investment, a large part of which goes to developing forested lands for large-scale food crop estates, mining sites and seed oil plantations.
Source: The Jakarta Globe
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Sunday, 20 June 10
OUR COAL: ITS DEVELOPMENT AND CONTROVERSIAL ISSUES
Indonesia’s production of coal has been growing amazingly. In the mid 1980s, national coal production was less than 1 million tons per annum, ...
Saturday, 19 June 10
STRONG DEMAND, RISING PRODUCTION SETTING SCENE FOR COAL BONANZA - THE JAKARTA GLOBE
The Jakarta globe rerported that, As the nation’s coal miners enjoy burgeoning demand from energy-hungry economies such as China and India, th ...
Saturday, 19 June 10
DRY BULK MARKET DOWN ON CHINESE SLOWDOWN FEARS
Dry bulk freight rates have been on a freefall for more than two weeks now, something which has caused the industry’s benchmark, the Baltic Dr ...
Saturday, 19 June 10
COAL INDIA KEEN ON BLOCK DEVELOPMENT IN INDONESIA - THE HINDU BUSINESS LINE
Expanding horizon
Agreement by the Indonesian Government is likely to help CIL gain foothold in India's largest sourcing point of thermal coal.
...
Friday, 18 June 10
THE PANAMAX MARKET CONTINUED ITS SOFTENING TREND - FEARNBULK
Handy
Flat Atlantic markets with most markets in ´slow mode´ due to holidays in China.
Supramax vessels open in the USG are achievi ...
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