The government has received applications for license to build new bio-fuel factories with a total investment of $1.35 billion. Data at the investment coordinating board, BKPM, showed that 31 domestic companies and 24 foreign investors have sought license to invest Rp8 trillion ($888 million) and $464 million, respectively in the country’s bio-fuel industry. BKPM deputy chairman, Achmad Kurniadi said the proposed investment is small compared to the market potential in the country.

Japanese trading houses and power companies are preparing to launch several large projects in Indonesia, including power generation, the Nihon Keizai Shimbun learned on Monday (27/11/06). Marubeni Corp is partnering with three firms, among them a subsidiary of Korea Electric Power Corp, to build and operate a large power plant on Java. The trading house won priority negotiation rights from state-owned utility PT PLN.

PT BumiGas Energi plans to raise $308 million by selling bonds to finance the building of two geothermal power plants in Java, lead arranger, Malaysia’s Affin Investment Bank, said Monday (27/11/06). BumiGas will build a 120-MW plant in Dieng, Central Java and a 180-MW facility in Patuha, West Java at a total cost of $400 million over four years, Affin said in a statement, according to the Associated Press.

State-owned Bank Tabungan Negara (BTN) plans to set aside Rp7.8 trillion ($855 million) to provide housing loans next year to meet rising demands for housing. "But it (allocation) will still need approval from the shareholders," BTN director, Kodradi was quoted as saying by The Jakarta Post on Wednesday (29/11/06). The figure represents a 26% increase from the Rp5.7 trillion in housing loans estimated to be extended this year, of which Rp5.2 trillion had been disbursed as of the end of October.

State-owned Bank Mandiri said it will set aside credit worth Rp14 trillion ($1.55 billion) to finance the expansion of oil palm plantations and develop bio-diesel factories in 2007. The credits will be about 36% of the total credits extended by banks for the plantations sector, bank director, Abdul Rahman, was quoted as saying by Antara. Bank Mandiri has already extended Rp21.5 trillion in credit to the plantations sector and related industries.

Jakarta and Seoul will sign a comprehensive strategic partnership agreement during a three-day state visit by South Korean President Roh Moo-hyun, which began Sunday (3/12/06). The pact includes 30 programs of action, as well as nine memorandums of understanding (MOUs) covering various industries.

President Susilo Bambang Yudhoyono on Monday (27/11/06) pledged his commitment to good governance after receiving an honorary doctorate during his visit to major investor Japan, where he set the seal on a framework for a free trade deal. Receiving an honorary doctorate at Tokyo’s prestigious Keio University, Dr. Yudhoyono said he was dedicated to enforcement of the law and bringing economic equality. "I would say good governance is the ideology of the 21st century," he told his audience.

Indonesia is an attractive market for top global computer manufacturers, supported by the steadily improving economy over the past few years. Dell is one of several companies competing fiercely to tap the country's huge market. The Jakarta Post had a chance last week to talk to Andreas Diantoro, Dell Asia Pacific regional director for South Asia and emerging markets, about the firm's performance, globally and in Indonesia.