Amid declining oil production, a long-standing issue that the Indonesian government has not satisfactorily resolved is whether to continue to be tough against oil companies on the question of financial incentives or to be flexible. Although the government recognizes that to boost oil exploration and production it needs support and cooperation from oil companies, relations between the government and the oil companies, especially foreign oil companies, is basically hostile, and lacks mutual trust.

VIVAnews - To achieve growth in the gross domestic products at seven percent by 2012, the Indonesian government must advance the capital expenditure twice as much as this year's budget. The government this year have just spent infrastructure expenditure by 3.5 percent of the GDP. "It's still too low," said World Bank Lead Financial Economist, P.S. Srinivas, today, Sept 30.

TEMPO Interactive, Jakarta:Thailand Trade representative, Suthad Setboonsarng, said most of the 18 countries participating in the 2010 Indonesia-Thailand Business Forum and Business Networking Programs are engine producers. This shows Thailand’s high interest in investing in the machinery industry in Indonesia.

TEMPO Interactive, Jakarta:Gita Wirjawan, the Investment Coordinating Board (BKPM) chairman, said Hyundai, the car producer from South Korea, had expressed its interest in building a car manufacturing factory in Indonesia. This is one of their investment plans brought up in a discussion with a number of companies in Korea last week. Gita said the intention was in line with BKPM and the Trade Ministry’s program to promote car manufacturing in Indonesia.

Jakarta (ANTARA News/Asia Pulse) - PT Jakarta Industrial Estate Pulogadung (JIEP), said it would start building a 130-megawatt power plant for its own use this year. Agus Dwitarto, the president of the company, which is owned by the Jakarta city administration, said the US$130 million project will be discussed with a number of Japanese partners next month. The power plant will likely use gas for fuel to be supplied by state gas distributor PT Perusahaan Gas Negara (PGN, JSX:PGAS), Dwitarto said.

Jakarta (ANTARA News/Asia Pulse) - China's state-owned steel company Guo Feng Iron and Steel plans to move its factory from Tangshan, China, to Indonesia with a total investment of US$1 billion, a government official said. Guo Feng will team up with PT Gunung Garuda to produce steel in Indonesia with blast furnace technology next year, Gunung Garuda chief commissioner Jamaludin said.

Some economists say Indonesia is poised to become an emerging economic power similar to China and India. Economic growth slowed slightly during the worst of the global economic crisis, but now it is again expanding at a rate of over six percent a year, and Indonesia has the second-best performing stock market in Asia.