George Soros to invest in oil palm sector in Aceh

One of the world's best-known fund managers, George Soros, plans to invest in the oil palm plantation sector in Nanggroe Aceh Darussalam, its governor, Irwandi Yusuf, said Thursday after meeting with Soros in New York recently. "He said that he was interested in developing an oil palm plantation of about 20,000 hectares during the first stage.

This kind of investment could feed around 2,500 families in Aceh," Irwandi said as reported Thursday by Antara. The governor could not put a precise figure on the investment, or the likely timeframe.

However, he promised that his administration would work hard to help Soros realize the plan. "Both sides will immediately get to work on ensuring that this investment plan is realized," Irwandi said. Soros is best known for his famous bet against sterling as Britain was forced to pull its currency out of the European currency grid in 1992.

This eventually earned Soros an estimated US$1.1 billion. Following this, he was dubbed "the man who broke the Bank of England." During the 1997-1998 Asian crises, his name was repeatedly linked to speculation that led to the devaluation of Southeast Asian currencies, although he consistently rejected the accusations. Then Malaysian prime minister Mahathir Mohammad was particularly strident in making accusations against Soros.

With an estimated net worth of around $8.5 billion, he is ranked by Forbes magazine as the 80th-richest person in the world. A Hungarian-born U.S. citizen, Soros is said to have started investing in Indonesian companies in 1999, buying shares in investment firm PT Bhakti Investama and PT Agis, which is a distributor for 14 household and electronic brands, such as Sony, Toshiba, Philips, Goldstar and RCA.

Currently, he is the chairman of Soros Fund Management and the Open Society Institute. Both institutions are heavily engaged in philanthropic activities. With the price of crude oil continuing to increase in the recent years, biofuel has become the most sought-after alternative energy source, with crude palm oil (CPO) being one of the main raw materials. Currently, Indonesia has the largest oil palm hectarage in the world, with 6.1 million hectares in Sumatra, Kalimantan, Sulawesi, Papua and, to a lesser degree, Java. "Aceh has a vast land area with a lot of potential, especially in the oil palm sector.

However, we do not have the money to develop this potential," Irwandi said. Attracting foreign investment has been one of Irwandi's main tasks since he was elected governor in Aceh's first democratic local election in February this year. In the current era of peace and recovery following 32 years of civil unrest, as well as the 2004 tsunami disaster, Aceh is opening up its arms to investment, especially in the energy, mining, agricultural and fisheries sector.

In 2005, oil palm plantations in the province produced nearly 250,000 tons of CPO from an area of 163,000 hectares. Investment procedures in Aceh have improved since the establishment of the Aceh One-Stop Investment Service (KPTSP), where business permits can be processed within 7 working days at the latest.

Read more!

Aceh province seeks expertise from UN in India

Inspired by the networks of development practitioners facilitated by the United Nations in India under its Solution Exchange initiative, the tsunami-hit Aceh region of Indonesia has reached an agreement with the United Nations Country Team in India to seek expertise for establishing similar networks for disaster recovery and rehabilitation.

A Memorandum of Understanding was signed on 20 August in New Delhi by the Governor of Aceh Province representing the agencies for recovery and rehabilitation in Aceh region and the UN Resident Coordinator in India.

After the signing of the MoU, the Governor of Aceh Province, Dr. Irwandi Yusuf commented, “Earlier I had five advisors to provide me with policy making advice and now, with the establishment of Solution Exchange Communities of Practice, I will have five million advisors with me in Aceh.”

The United Nations Country Team’s Solution Exchange concept which was established in India in 2005 now has eleven Communities of Practice, offering development practitioners in India a forum for sharing knowledge and experience of development challenges in pursuit of the MDGs. This knowledge management partnership of the UN in India has offereds expertise and experience to assist in the development of the Solution Exchange model to foster communities of practice in Aceh and Nias.

At the signing of the MoU the Resident Coordinator for UNCT India, Dr. Maxine Olson said: “The UN in India has been very enthusiastic about Solution Exchange as a new role for the various UN agencies that taps its convening power and offers an impartial space for practitioners to share knowledge and experience. We are sure that the operations in Aceh and Nias will find these networks to have the same effect, and will add more value to the rehabilitation and reconstruction work of the UN Agencies in Indonesia.”

The Solution Exchange initiative in Aceh and Nias which will be initiated in November 2007, will catalyze in multi-level coordination in recovery and rehabilitation efforts, minimizing gaps, providing linkages and strategic policy advice.

Read more!

Aceh Inviting Foreign Investors

First Democratically-Elected Governor thanks Americans for supporting tsunami relief and presents future of job growth and economic development in Aceh
NEW YORK -- The American Indonesian Chamber of Commerce and the Building Bridges to the Future Foundation, Inc. today announced the beginning of Governor Irwandi Yusuf's visit to the United States.
"After 30 years of conflict and the devastating tsunami in December 2004, the people of Aceh are at an important cross-road that will determine success for future generations," said Sara Henderson, President of the Building Bridges to the Future Foundation. "For the first time in their history, the people of Aceh have a democratically- elected leader who will vigorously represent their interests in recovery and in sustainable economic development to create jobs."
"Aceh is open for business and the US is already their largest trade and investment partner," declared Wayne Forrest, President of the American Indonesian Chamber of Commerce. "Irwandi's vision for Aceh is to create jobs and encourage economic development. He is in the US to promote Aceh's world-famous Sumatran Arabica coffee beans, significant palm oil resources that can be produced into biodiesel, and his commitment to environmental policies that will generate carbon credits that can be sold to carbon-generating countries like the US."
Following is Governor Irwandi's schedule of events in the US, as of September 9th. He is accompanied by a delegation of Aceh business leaders and the Aceh Investment Office

Read more!