Thu, 14 Jan 2010
From: The Jakarta Globe
By Janeman Latul
The Indonesian government says an agreement with Dubai-based Emaar Properties to develop a massive tourist resort on Lombok has officially expired, but Emaar will be given the chance to sign a new deal.

State-Owned Enterprises Minister Mustafa Abubakar confirmed late on Tuesday that the agreement with Emaar to develop a $600 million resort in Lombok was no longer valid, and said the government would proceed with the project whether it could come to terms with Emaar or not.

“We’re still considering Emaar because we want to maintain a good relationship between the two countries,” Mustafa said. “But if the new round of negotiations come to a deadlock, the government will find other investors because we have already invested a lot money in the project, including the new international airport.”

Both parties had agreed to a Dec. 31 deadline to solve numerous problems, including poor access to roads and communications, difficulties acquiring land and disputes over stakes in the venture. The ministry said the deadline would not be extended but that while this deal had failed, the government was willing to open fresh talks with Emaar about re-starting the much-delayed project.

Harry Susetyo, a deputy at the SOE Ministry, said Emaar had enjoyed a strong position under the previous agreement, and the ministry would seek more favorable terms if talks were restarted.

The deal would also be revalued, he said.

Emaar said earlier this month that both parties had agreed to meet in Jakarta this month to discuss the next steps in project. It said the talks would focus on finalizing key details such as questions surrounding the transfer of available land.

Mustafa said the ministry wanted both parties to closely examine all the risks involved, including the fairness of the structure of the joint venture.

The project, announced by former Vice President Jusuf Kalla in May 2007, envisioned a 1,200-hectare development that would transform the Kuta and Tanjung A’an beaches into a world-class resort run by a joint venture between Emaar, state-owned Bali Tourism Development Corp. and local governments.

However, infrastructure problems sapped Emaar’s enthusiasm for the project, and Dubai’s debt crisis may have strained it financially. No one from Emaar was available to comment on Wednesday.


Thu, 14 Jan 2010
From: JakChat
Comment by Om Pong
Yes!! It's dead! The deal is dead!! Tank de lawd.


Thu, 14 Jan 2010
From: JakChat
Comment by KuKuKaChu
it's not dead. it's pining for the fjords.


Thu, 14 Jan 2010
From: JakChat
Comment by Om Pong
It's bleedin' demised.


Fri, 15 Jan 2010
From: JakChat
Comment by KuKuKaChu
i wonder what they want to talk about ...

From http://wam.org.ae/servlet/Satellite?c=WamLocEnews&cid=1261832851701&p=1135099400295&pagename=WAM%2FWamLocEnews%2FW-T-LEN-FullNews

UAE ambassador meets Indonesian officials

WAM JAKARTA, Jan. 14th, 2010: UAE ambassador to Indonesia Youssef Rashid Al-Sharhan held meetings with members of the committee on energy and committee on foreign affairs at the Indonesian Parliament.

The discussions with the delegation led by Mohammed Najeeb, deputy chairman of the inter-parliamentary cooperation committee, took in relations between the UAE and Indonesia in various areas such as investments and trade.

The Indonesian side expressed interest in attracting more UAE investments while Ambassador Al-Sharhan expressed the UAE's interest in attracting more Indonesian skilled and well-trained workers.

WAM/MMYS


Thu, 28 Jan 2010
From: JakChat
Comment by KuKuKaChu
Officials Throw Lombok Project A Final Lifeline

by Janeman Latul

Local and central government officials are mounting a last-ditch attempt to salvage a giant resort plan for Lombok that all but collapsed earlier this month.

The West Nusa Tenggara government and the Investment Coordinating Board (BKPM) now say they will give Dubai-based developer Emaar Properties until March to commit to the massive resort project. However, they say it is “game over” for Emaar’s protected status as a partner.

West Nusa Tenggara government secretary Eko Bambang Sutedjo said on Wednesday that Emaar had one more month to commit to its $600 million planned investment in the project.

He said officials will fly to Dubai next month for a last round of talks aimed at convincing Emaar to commit, but added that negotiations are already under way with several other investors.

The Lombok project, unveiled by former Vice President Jusuf Kalla in May 2007, envisioned a 1,200-hectare development that would transform the Kuta and Tanjung A’an beaches into a world-class resort run by a joint venture between Emaar, state-owned Bali Tourism Development Corp. and local governments.

According to documents related to talks between the parties, poor access to roads and communications, land-acquisition problems and disputes over the terms of the joint venture sapped Emaar’s enthusiasm for the deal. The parties had agreed to a Dec. 31, 2009, deadline to solve the problems, but this was missed.

BKPM Chairman Gita Wirjawan stressed that media reports on Wednesday that BKPM had “terminated” its involvement with Emaar were inaccurate. However, he acknowledged that talks were just a step away from collapse and confirmed that BKPM, the State-Owned Enterprises Ministry and the Tourism Ministry had been re-evaluating the project over the past two months, under the leadership of Coordinating Minister for the Economy Hatta Rajasa.

“We’ve come to the conclusion to take a firm decision on the project against Emaar. Therefore, we’re ready to find alternative investors. It’s actually game over for Emaar,” he said.

However, Eko insisted a lifeline was being prepared for Emaar. He said that “based on a meeting with Pak Gita and the provincial government, we’ve decided to give Emaar until March to realize its investment.”

BKPM representatives and the West Nusa Tenggara governor will travel to Dubai next month to seek a commitment from Emaar, he said. “Since Emaar didn’t keep its promise to come to Indonesia this month, the government took the initiative to meet them in Dubai and settle the matter once and for all,” he said.

Since the implementation of the local autonomy law in 2004, local governments have had a larger role in making decisions on investments in their region, while the central government’s role is to facilitate any deal.

Despite the extended deadline, Gita remained pessimistic about the likelihood of a deal. “This project has been stalled for more than three years and now Dubai World [a major state-owned company] has suffered a debt crisis and is having to restructure $59 billion in debt,” he said. “This will have an impact on Emaar, too, as the company is currently embarking on several big projects in the Middle East. It means the company’s financial capacity is tight.”

The government had bent over backward to satisfy Emaar, including building the Lombok International Airport, which is scheduled to be completed in June, as well as access roads to Kuta Beach, Gita said. “But those efforts weren’t reciprocated by Emaar,” he said.

A Litany of Missed Deadlines

May 2007: Then-Vice President Jusuf Kalla and Emaar Properties chairman Mohammed Bin Ali Alabbar announce plans for the ambitious project.

May 2008: Emaar opens an office in Jakarta to oversee the project. Both parties agree to allow six months to finish the preliminary plan concerning supporting infrastructure, the resolution of land-acquisition issues, and the establishment of joint venture company PT Emaar Lombok.

November 2008: The deadline on preconditions passes, with the government requesting an extension from Emaar until March 2009.

March 2009: Emaar closes its Jakarta office because the government is still unable to provide necessary details of the plan. The deadline is extended for three months after senior United Arab Emirates government officials intervene.

June 2009: A dispute develops over shares in the joint venture company. The deadline is extended until Dec. 31.

October 2009: West Nusa Tenggara government delegation goes to Dubai to talk to Emaar representatives in an effort to get the project started. Emaar declines to commit.

December 2009: No action is taken by either party as the Dec. 31 deadline expires.

Jan.13 2009: SOE Minister Mustafa Abubakar says the government is seeking new investors and gives an ultimatum to Emaar.


Thu, 28 Jan 2010
From: JakChat
Comment by Om Pong
This deal wouldn't go' "Voom" if you put 50,000 volts through it. It's a bleedin' stiff.


Thu, 28 Jan 2010
From: JakChat
Comment by Marmalade
Very heavily one-sided reporting.



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