Showing posts with label News. Show all posts

Sega attacked, hacker group offers to take revenge

Saturday, June 18, 2011 · Posted in


Japan's Sega Corp joined the rapidly growing club of video game companies whose computer systems have been hacked by cyber criminals, the company said on Friday.

The news capped a week in which the Lulz Security group of hackers launched a cyber crime spree against other video game companies.

In an unexpected twist, Lulz responded to the news of the attack on Sega by offering to track down and punish the hackers who attacked the Japanese maker of video game software.

The drama surrounding the recent round of video game breaches paled compared to what PlayStation maker Sony Corp experienced following two high-profile attacks that surfaced in April. Those breaches led to the theft of account data for more than 100 million customers, making it the largest ever hacking of data outside the financial services industry.

They also exposed what turned out to be a large number of security holes in sites throughout the global Sony media empire. That led to a rash of attacks on Sony systems that undermined confidence in the company and made it the source of frequent jokes by security experts. Its security staff scrambled to repair vulnerabilities in its network as independent experts identified new problems via remote scans and disclosed them to Sony and the public.

Sega said that some personal information about an unspecified number of Sega Pass online network members had been compromised in the attack, according to a letter the company sent to customers on Friday that was published on the PlayStation LifeStyle.net website.

Customer email addresses and birthdates, which can be read in plain text were taken, as were passwords, which could not be read in plain text because they had been scrambled or encrypted using security software before being stored in the database.

Sega shut down the Pass network on Thursday, the day it learned of the breach, telling customers in a note on its website that it was "undergoing improvements." It was not immediately clear when it would go back online.

The video game developer is a division of Japan's Sega Sammy Holdings, which makes game software such as Sonic the Hedgehog as well as slot machines.

Sega was one of the biggest video game consoles makers in the 1990s, but pulled out of the market in 2001 in response to disappointing sales of its Dreamcast system, which had debuted in 1998 to widespread industry praise. Dreamcast lost ground to newer products developed by Sony and Nintendo.

It now focuses on developing video games for systems made by other companies.

LULZ GETS INVOLVED

While the FBI is likely to be called in to investigate the attack on Sega, as the bureau typically is in such cases, its agents may find themselves competing for clues with members of Lulz Security hacking group.

In its offer to assist Sega, the Tweet from Lulz hinted that its leaders might count themselves among a small but highly loyal group of gamers who still play on the aging Dreamcast console.

"Sega - contact us," Lulz said in its Tweet to the video game developer. "We want to help you destroy the hackers that attacked you. We love the Dreamcast, these people are going down."

Lulz offered to see that the cyber criminals are punished for attacking Sega shortly after ending its own crime spree that included attacks on several other video game companies.

The Lulz hackers, who publicize their attacks on their own website and via Twitter, said on Friday that they had stolen customer records of some 200,000 users of the online video game Brink. Officials at Xenia Media, the developer of Brink, could not be reached for comment.

Lulz last week also attacked several other industry players, saying it was working on behalf of disgruntled players who had ordered the attacks via telephone hotlines that Lulz set up in the United States and Europe to solicit such requests.

Tribalware.net and EVE from Innogames were among the victims of the Lulz campaign against video game makers. The hacking group also attacked servers that help run two other online games -- "League of Legends" and "Minecraft" -- and it hit the The Escapist website, which provides video game news.

Lulz had hacked into Nintendo in an attack that it disclosed on June 3, but the incident has not appeared to have serious consequences for the company. The hacking group published a data file over the Internet that it said contained details on the way Nintendo set up one of its web servers.

Such data could be valuable to other hackers planning future attacks on Nintendo because the data potentially could leave clues as to possible security weaknesses in the game maker's network.
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Obama impersonator cut off at Republican conference

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A comedian impersonating President Barack Obama was cut short and ushered off the stage at a gathering of Republican activists on Saturday after a series of off-color jokes.

The Obama impersonator, Reggie Brown, poked fun at Obama's biracial heritage, a gay congressman and several of the Republican presidential candidates before Republican Leadership Conference organizer Anthony Davis cut him off.

As Obama, whose father was black and mother was white, Brown said he celebrated half of Black History Month.

He also made a joke about Democratic Representative Barney Frank, who is gay, mocked Republican presidential candidate Mitt Romney's Mormon faith and said Republican Tim Pawlenty needed a spinal transplant after his failure to confront Romney on healthcare at a debate earlier this week.

As Brown was launching into a joke about Republican Michele Bachmann, the music came up and Davis came on stage to cut him off.

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Boeing refuses to rush decision on 737 upgrades

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Boeing Co (BA.N) says it feels no pressure to rush a decision on whether to re-engine or redesign its best-selling 737 narrow-body, despite impressive orders for an upgraded version of the competing plane -- the Airbus A320neo.

Customers will wait for the best, most-fuel efficient plane Boeing can make, and the company cannot risk promising a plane it cannot deliver, said Nicole Piasecki, vice president of business development and strategic information for Boeing Commercial Airplanes told reporters earlier this month.

Piasecki spoke in Seattle at a media briefing Boeing given on the condition that media outlets not publish the information until Sunday Paris time, a day before the start of the Paris Air Show, the aerospace industry's biggest trade show.

"These are big, big decisions," she said. "Until we have confidence we can execute and have the support of customers, we won't bring a plan to the board."

The aviation world had hoped Boeing would issue a decision on the 737 at the air show after Boeing delayed its decision from last year. But the company now says it may not reach its decision by the end of 2011.

Boeing says it is leaning toward a redesigned 737, which is the domestic workhorse of many airlines around the world. But it has not ruled out putting a more fuel-efficient engine in the current design. Boeing has more than 2,000 orders for the airplane on its books and is sold out through 2015. A 737 lists between $56.9 million and $85.8 million.

Re-engining would bring the plane to market faster, but a redesigned plane would offer greater fuel savings.

Boeing says its customers are content to wait for a whole new plane. Boeing's larger rival, EADS (EAD.PA) unit Airbus, announced last year that it would re-engine its A320 and has already received more than 300 orders for it.

The future of the 737 and the A320 -- the two best-selling narrowbodies -- will be a major topic at the Paris Air Show as plane-makers contemplate a massive market for the planes, estimated at $2 trillion.

737 PRODUCTION INCREASE

Boeing, on Wednesday, said it would increase the production rate for its 737 to 42 per month from the current 31.5 per month starting in 2014 to meet growing demand.

Beverly Wyse, 737 program vice president and general manager, said at a media briefing that Boeing would aim much of its 737 production at Chinese markets, where economic growth has generated big demand for short-haul planes.

Wyse said, however, that Boeing has no plans to put a 737 production line in China.

Current 737 models have an 8 percent operating cost advantage over the A320, which they will lose when the new A320 comes out. Re-engining the 737 would restore that advantage, Wyse said.

Boeing has said it would like to incorporate design elements of the light-weight, carbon-composite 787 Dreamliner. Although it is incredibly popular among airlines, the plane is about three-years past due for its first delivery, largely because of snags in the global supply chain.

The delay has been a persistent embarrassment for Boeing, despite logging more than 830 orders for the plane. Boeing plans to deliver the first 787 to Japan's All Nippon Airways (9202.T) in the third quarter.

"We're going to apply the lessons learned from the 787, the strategic imperatives," Piasecki said. "Certain capabilities we want to make sure we have within the walls of Boeing."

Boeing intends to make a splash at the Paris Air Show by flying two new versions of its iconic 747 widebody to Paris for their international debuts.

Boeing plans to deliver the freighter version of that plane to its first customer this summer. The passenger version of the new 747 -- dubbed the 747-8 Intercontinental -- is set for first delivery in the fourth quarter. The company says flight tests for the freighter are about 90 percent complete.

(Writing by Kyle Peterson; Editing by Anthony Boadle)
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Target workers at New York store reject union

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Workers at a Target Corp discount store in New York voted to reject union representation in what would have been the first unionized Target store in the country, while union officials vowed to press for another election.

Employees at the Valley Stream, New York, store voted against union affiliation, 137-85, Target said in a statement released Saturday. The vote was taken on Friday.

"We are looking forward to having another election," said Aly Waddy, director of special projects for the United Food and Commercial Workers Union Local 1500, which wanted to represent workers at the store, located about 15 miles east of Manhattan.

"We are definitely going to be invested in this campaign until we make sure the workers can finally have a fair and free election," Waddy said.

Target employs thousands of workers at 27 stores in the New York City area. The Minneapolis-based company has about 1,755 U.S. stores and none have union-represented employees.

The vote was part of a closely watched battle over unionization in the retail sector.

"At Target, it has always been our goal to have a culture where our team members don't want or need union representation," Derek Jenkins, Target senior vice president of stores in the northeastern United States, said in a statement.

"The Valley Stream Target store is filled with a team of dedicated, enthusiastic team members. We want to thank the team for their faith and confidence in Target," Jenkins said.

Target and the union had already filed unfair labor practice charges against each other with the National Labor Relations Board, according to an agency spokesman, and more charges are likely.

Waddy said some store employees were told the store could close or that they could be replaced if they voted for unionization. The store also rented vans, manned by security guards, to take the employees to work to vote, she said.

"There was a serious level of tension in the store and, obviously, the company ran a really aggressive campaign," Waddy said. "A lot of people were taken aback by the fact that they thought the store was going to close."

Union members make up a small percentage of U.S. retail workers, and the percentage fell to 4.7 percent last year, according to the U.S. Bureau of Labor Statistics.

Retailers such as Target and Wal-Mart Stores Inc have long resisted having employees represented by unions at their stores.

(Reporting by Brad Dorfman and Michael Hirtzer; editing by Todd Eastham)
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Asia to become world largest economic region: Marvell

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AsiaMarvell Technology Group USA predicted that the Asian region will become the world largest economic area in a decade to come.

"Currently there is a shift of economic growth engine from the West to the Asian region," President and Chief Executive Officer Marvell Technology Group USA, Sehat Sutardja said here on Sunday in a joint press conference with chairpersons and vice chairpersons of the World Economic Forum-East Asia (WEF-EA).

The shift of the economic growth engine was accelerated by China`s steps to develop low-cost manufacturing, he said.

"Indonesia with its great number of people and good education will provide an important role, so that the country can also supply the world-class business leaders," Sutardja said.

Marvell Technology Group is the world integrated silicon producer.

Marvell products are widely used in various electronic devices, such as Cisco switches, Blackberry, Apple iPod, Xbox 360 and the output products of electronic companies, such as Panasonic, Huawei, Toshiba, Fujitsu, Sony Ericsson, HP, Samsung, including Hitachi.

Sutardja is determined to make the technology as something that can be used to narrow the gap between the poor and the rich.

"I want to see that the increase in infrastructure and technology can reduce social inequalities," he cited.

In 2006, Sutardja received an award as Inventor of the Year from the Silicon Valley Intellectual Property Law Association.

In 2007, the Forbes magazine inserted Dr. Sehat Sutardja as one of the richest men in the United States (U.S.$1 billion List of billionaires), and held over 150 patents in the U.S.

Sutardja was trusted to be one of the WEF-EA 2011 chairpersons.

Currently, Marvell is a technology company which develops storage, communications and consumer silicon solutions.


(Uu.B003/A014).
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IMF cuts U.S. growth forecast, warns of crisis

Friday, June 17, 2011 · Posted in

The International Monetary Fund cut its forecast for U.S. economic growth on Friday and warned Washington and debt-ridden European countries that they are "playing with fire" unless they take immediate steps to reduce their budget deficits.

The IMF, in its regular assessment of global economic prospects, said bigger threats to growth had emerged since its previous report in April, citing the euro zone debt crisis and signs of overheating in emerging market economies.

The Washington-based global lender forecast that U.S. gross domestic product would grow a tepid 2.5 percent this year and 2.7 percent in 2012. In its forecast just two months ago, it had expected 2.8 percent and 2.9 percent growth, respectively.

With regard to the global economy overall, the IMF struck a measured tone, saying the slowdown of recent months should be "temporary." It trimmed its forecast for global growth this year only slightly, to 4.3 percent from 4.4 percent, and maintained its estimate for robust Chinese growth of 9.6 percent despite recent signs of a slowdown there.

Yet that relatively benign global outlook could quickly fall apart if politicians in the United States and Europe do not start showing more leadership in addressing their countries' debt problems, the fund warned.

"You cannot afford to have a world economy where these important decisions are postponed, because you're really playing with fire," said Jose Vinals, director of the IMF's monetary and capital markets department.

"We have now entered very clearly into a new phase of the (global) crisis, which is, I would say, the political phase of the crisis," he said in an interview in Sao Paulo, where the updates to the IMF's World Economic Outlook and Global Financial Stability Report were published.

In the United States, the political problems include a fight over raising the legal ceiling on the nation's debt. A first-ever U.S. default would roil markets, and Fitch Ratings said even a "technical" default would jeopardize the country's AAA rating.

The IMF said the outlook for the U.S. budget deficit this year has improved somewhat due to higher-than-expected revenues. In a separate report, it forecast a deficit of 9.9 percent of GDP -- better than the deficit of 10.8 percent of GDP it foresaw in April, but still near historic highs.

MARKETS INCREASINGLY ON EDGE

The fund, which has endured its own political crisis due to the resignation of its chief, Dominique Strauss-Kahn, on sexual assault charges, said the global economy "has gained ground" despite a slowdown it deemed "not reassuring."

It attributed the weakness to temporary disruptions such as the Japan earthquake, bad weather pressuring food crops and higher energy prices. Global growth should "reaccelerate" during the second half of the year, the report said.

The fund's forecast for global growth next year remained unchanged at 4.5 percent.

The IMF raised its growth view for the euro area in 2011 to 2.0 percent from 1.6 percent. For 2012, the IMF saw growth at 1.7 percent, little changed from its previous 1.8 percent.

Yet Europe also poses some of the biggest risks to the global economy, Vinals said.

"If you make a list of the countries in the world that have the biggest homework in restoring their public finances to a reasonable situation in terms of debt levels, you find four countries: Greece, Ireland, Japan and the United States," Vinals said.

Greece has edged closer to default as euro zone officials disagree on a planned second aid package for the indebted country. With strikes and protests around the country, political turmoil has added to uncertainty, stoking fears that the government will not be able to tighten its belt enough to reduce crippling deficits.

Fears of contagion in the euro zone have driven global stock markets lower in recent sessions.

The fund raised its forecast for Germany, the powerhouse of the euro zone, to 3.2 percent from 2.5 percent, with growth moderating to 2 percent in 2012.

Forecasts for large emerging markets remained stable or slipped. While China's GDP view stayed unchanged, the IMF lowered its Brazil outlook to 4.1 percent from 4.5 percent.

Those countries, along with Russia, India and South Africa, make up the fast-growing BRICS, a group of emerging economies whose brisk expansion has outstripped that of developed markets recently.

Robust economic growth and rising inflation have caused emerging economies to tighten monetary policy with higher interest rates and reserve requirements, even as many developed nations keep policy ultra-loose to try to boost anemic growth.

The IMF warned that many emerging markets still need more tightening. In China, for example, the high inflation rate means negative real interest rates.

Some emerging markets have been reluctant to tighten too far, fearful of derailing growth or attracting speculative investment flows that could push their currencies ever higher.

(Editing by Brian Winter, Leslie Adler and Dan Grebler)
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IMF warns of increased risks to the world economy

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The International Monetary Fund has warned that the risks facing the world economy have increased.

The fund said it was concerned about the continuing Greek debt crisis, the arguments over US deficit plans and the need to curb growth in Asia.

But it said it expected global growth to remain on track, though it lowered its forecasts for the US and UK.

The IMF predicted that the world economy would grow at a rate of 4.3% in 2011 and 4.5% in 2012.

The fund called for greater political leadership in dealing with the eurozone debt crisis and the budget crisis in the US.

"You cannot afford to have a world economy where these important decisions are postponed, because you're really playing with fire," said Jose Vinals, director of the IMF monetary and capital markets department.

The IMF's latest forecasts came as it updated its assessments of financial stability, country finances and the global economy. Its last review was in April.

Greek debt

The fund warned that the continuing Greek debt crisis could destabilise the global financial system.

Many analysts believe Greece will not be able to pay back all the money it has borrowed.

"I don't think there is a question over whether Greece is going to default, it is just a question of whether it is an orderly or disorderly one," says George Magnus, senior economic adviser at UBS.

The IMF warned that if Greece was unable to pay its debts, other countries such as Spain or Portugal may also be affected.

European banks which lent money to these countries would in turn lose out.

"In a serious market event, a shock could be transmitted beyond the eurozone", warned the IMF's financial stability report.

It called on the leaders of European governments to implement long-term policies to prevent further problems.

At the same time, the IMF warned that European banks had not yet built up sufficient capital to withstand a further economic shock.

"Markets may become disorderly if political developments derail momentum on fiscal consolidation and financial repair," the fund warned.

US and Japan

The IMF also highlighted debt problems outside the eurozone.

Japan is struggling to cut its spending in the aftermath of the earthquake and tsunami.

In the US, the fund highlighted the "political stalemate" over how to tackle the deficit.

The fund lowered its growth forecasts for the US for the next two years from 2.7% to 2.5% in 2011 and from 2.9% to 2.7% in 2012, and it also highlighted renewed weakness in the housing market as a risk.
Economic growth

In the so-called "core" European countries, such as France and Germany, growth has exceeded expectations.

The IMF raised its 2011 growth forecast for Germany to 3.2% from 2.5%.

This may help to mitigate some of the problems faced by other countries in the eurozone.

The fund pushed up its 2011 forecast for the eurozone as a whole to 2% from 1.6%.

In the UK, the fund downgraded its growth forecast for 2011 to 1.5% from 1.7%.

However, it endorsed efforts to cut the deficit, describing the plans as "on track".

Outside Europe, the fund said it expected economic growth in developing countries to remain strong.

This, in turn, presents a risk of overheating - where economies grow too fast leading to a rapid contraction later.

"Too much capital may be moving too quickly to emerging markets," the IMF warned, pointing to higher inflation in some countries.

Property prices in China have also risen sharply posing the risk of a sharp downturn.

The three IMF reports highlight the uncertainty over the economic outlook

UBS's Mr Magnus said: "The standard [IMF] economic forecast is based on all sorts of assumptions, but that is the point. We are being treated to a succession of random and extreme events, which are difficult to predict."
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Nokia and Apple settle patent dispute

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Nokia and Apple have agreed a technology licensing agreement that ends the long-running legal dispute between the two firms.

"The agreement will result in settlement of all patent litigation between the companies," Nokia said.

Nokia sued Apple for patent infringements in 2009 and extended the action in December last year.

Apple had countersued, accusing Nokia of infringing its patents.

Nokia said Apple had agreed a one-off payment, the value of which was not disclosed, and ongoing royalties to use its technologies.

Apple said the deal covered both companies' patents.


Counter claims
"We are very pleased to have Apple join the growing number of Nokia licensees," said Nokia's chief executive Stephen Elop.

"This settlement demonstrates Nokia's industry-leading patent portfolio and enables us to focus on further licensing opportunities in the mobile communications market."

Apple said the two firms had agreed to "drop all of our current lawsuits and enter into a licence covering some of each other's patents, but not the majority of the innovations that make the iPhone unique".

"We're glad to put this behind us and get back to focusing on our respective businesses."
'Positive news'

Nokia's various claims against Apple included alleged patent infringements of touch interfaces, caller ID, display illumination, and 3G and wi-fi technology.

Apple had also claimed that Nokia had infringed many of its patents.

Both sides had always denied each other's claims.

"This is the first positive news from Nokia for a long time. They can both focus on their businesses now, and the dispute was settled to Nokia's advantage," said Mikael Rautanen at research group Inderes in Helsinki.

At the end of last month, Nokia said it expected sales and profit margins for the current quarter to be well below its previous forecasts.

The company has been struggling to reposition itself in the rapidly-growing smartphone sector, where it is trying to make up ground lost to competitors such as Apple's iPhone and phones using Google's Android operating system.
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SEC could file civil fraud charges against some raters

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U.S. regulators could file civil fraud charges against some credit-rating agencies for their role in developing mortgage-bond deals that helped bring about the financial crisis, the Wall Street Journal reported, citing people familiar with the matter.

The Journal said the Securities and Exchange Commission was reviewing the conduct of companies including McGraw Hill's Standard and Poor's and Moody's Investors Service owned by Moody's Corp on at least two mortgage-bond deals.

The paper said a Standard & Poor's spokeswoman declined to comment, and it quoted Michael Adler, a spokesman for Moody's, as saying: "Although Moody's is uncertain as to what The Wall Street Journal is referring, we would certainly cooperate with any requests we receive from the SEC."

Reuters could not reach Standard and Poor's, the SEC or Moody's for comment.

The SEC is considering whether the credit-ratings firms failed to do enough research to be able to rate adequately the pools of subprime mortgages and other loans that underpinned the mortgage-bond deals, the paper said.

In May, the SEC sought public comment on proposals that the credit-rating agencies needed to reveal more about how they judge financial products and how those ratings perform over time.

(Reporting by Vaishnavi Bala in Bangalore; Editing by Hans-Juergen Peters)
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Three countries ready to supply cattle to RI

Thursday, June 16, 2011 · Posted in

CattleNew Zealand, Canada and Brazil are ready to supply beef and cattle to Indonesia following Australia`s suspension of live cattle exports to the country over alleged abusive treatment of livestock.

Representatives of the three countries expressed the readiness during a meeting with Head of the Agricultural Quarantine Body at the Agriculture Ministry Banun Harpini here on Wednesday.

Banun said actually the ministry invited six countries, namely New Zealand, Canada, Brazil, Mexico, Uruguay and Ireland, to attend the meeting. "However, only three countries attended the meeting and they expressed readiness to supply cattle to Indonesia."

He said Brazil which had so far exported live cattle to India, China, Singapore, Russia and even Australia was ready to export beef to Indonesia in any quantities.

However, Indonesia could not import live cattle from Brazil because Law No. 18 of 2009 on husbandry and animal health stipulated that Indonesia could only import cattle from foot and mouth disease (FMD)-free countries.

"Admittedly, FMD is still found in Brazil. But like Indonesia, Brazil is a large country. Brazil has FMD-free zones and FMD-free zones where vaccination is still given or is not given," he said.

Therefore, there had been an idea of amending the law, he said.

He said New Zealand offered to export beef because the country did not export live cattle according to its policy.

Meanwhile, Canada offered to export young cattle to Indonesia to increase the country`s cattle population, he said.

The Australian government decided last Wednesday to suspend all cattle exports to Indonesia following an outcry over alleged abusive treatment of livestock in the country.

Australia said the suspension would remain until Indonesia establishes new regulations to protect livestock from mistreatment.

Australia exports about 500,000 cattle a year to Indonesia, accounting for 60 per cent of its livestock trade.(*)

Editor: Heru
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Google invests $280 million to spur home solar

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Google is making its largest investment yet in clean energy in an effort to help private homeowners put solar panels on their rooftops.

The $280 million deal with installer SolarCity is the largest of its kind. SolarCity can use the funds to pay for a solar system that it can offer to residents for no money down. In exchange, customers agree to pay a set price for the power produced by the panels.

Google earns a return on its investment by charging SolarCity interest to use its money and reaping the benefits of federal and local renewable energy tax credits.

"It allows us to put our capital to work in a way that is very important to the founders and to Google, and we found a good business model to support," said Joel Conkling of Google's Green Business Operations in an interview before the company announced the investment Tuesday.

Google co-founder and chief executive Larry Page wants Google's operations to eventually produce no net greenhouse gas emissions. To this end, Google has invested in wind farms in North Dakota, California and Oregon, solar projects in California and Germany, and the early stages of a transmission system off the East coast meant to foster the construction of offshore wind farms. The SolarCity deal brings the total value of these investments to $680 million.

Google, based in Mountain View, California, is emerging as one of the biggest corporate users of energy as it continues to build data centers packed with computers that run its search engine and other services.

This type of fund Google is creating is common in the residential solar industry, A typical rooftop solar system costs $25,000 to $30,000, too much for many homeowners to lay out. Instead, solar providers like SolarCity and competitors SunRun and Sungevity can pay for the system with money borrowed from a bank or a specially-designed fund. The resdent then pays a set rate for the power generated. The rate is lower than or roughly the same as the local electricity price.

A typical 5-kilowatt system will generate about 7,000 kilowatt-hours of power in a year, or about 60 percent of the typical household's annual use. The homeowner buys whatever remaning electric power he needs from the local utility. The homeowner typically enjoys lower overall power bills and is protected somewhat against potentially higher traditional electricity prices in the future.

Electricity prices have not risen in recent months, unlike gasoline and heating oil. But they're expected to creep up in coming years as the cost of increasingly stringent clean-air regulations are passed on to customers.

These types of programs don't work well forall homes. In order for both the solar company to make money and the homeowner to save money there must be some combination of high local electric rates, state and local subsidies, and low installation costs.

And, of course, sunshine. A home needs a roof, preferably facing south, that is not shaded by tree or structures.

Google's $280 million is expected to pay for 10,000 rooftop systems that will be installed over the next 18 months. These types of programs originated in California, by far America's largest solar market, because the state has offered generous incentives, power prices are high and there is mple sunlight.

In recent months, though, SolarCity and its competitors have announced expansions to other states, and the establishment of new funds to pay for new systems. SolarCity, based in San Mateo, California, offers service in Arizona, California, Colorado, Maryland, Massachusetts, New Jersey, New Yrk, Oregon, Pennsylvania, Texas and Washington, D.C.

SolarCity established a $158 million fund in May while SunRun set up a $200 million fund, both with U.S. Bancorp. SolarCity has now raised $1.3 billion in total. Also last month, Sungevity announced it would offer services through Lowe's stores in eight tates.

Customers typically choose to finance their systems. SolarCity says of the 15,000 systems it has installed, 12,000 were financed.

Google's investment generates returns three ways. Google gets a tax credit from the federal government of 30 percent of the cost of the solar projects, in this case $84 million. It also can write off the total value of the systems in the year they are built, an accounting benefit called accelerated depreciation. The value of state and local tax credits also flow to Google.

Finally, SolarCity pays Google interest for the use of the funds through the rates it charges customers, though neither company will say how much.

Google also declined to compare the return on its solar fund with the company's overall profit margin. In 2010, Google earned $8.5 billion on $29.3 billion in sales, a profit margin of 29 percent.

Google investors have questioned investments that have little to do with the company's main Internet businesses and that may be potentially risky or generate lower returns. In a meeting with investors last month, Google CFO Patrick Pinchette said tax benefits of these projects can generate high returns.

"In order for us to invest in them they have to do very well from a returns perspective," Pinchette said.

Nathaniel Bullard, a solar analyst at Bloomberg New Energy Finance, estimates that these types of residential solar funds generate returns for the primary investor of well over 10 percent, and perhaps as high as 20 percent, including the value of the tax benefits.

Google - and solar installers - hope that this investment will inspire other corporations to establish similar funds.

"The number one constraint for the last few years has been the lack of project financing," said Lyndon Rive, CEO of SolarCity. "Once corporations start entering this space it will bring more affordable solar to millions of homes."
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Consumers feel pinch as beef prices go up

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Australia’s six-month ban on cattle exports may be considered a blessing to local players, but the sudden cut in a supply chain that contributes a significant slice of the cattle market has been a pain for consumers and shaken the country’s food sufficiency program, a minister said.

“Domestic cattle producers can only supply 70 percent of the annual national demand. Normally we import the other 30 percent, which is equal to 550,000 live cows,” Agriculture Minister Suswono said in Jakarta on Thursday.

Last year, Indonesia imported 500,000 head of cattle from Australia and 120,000 tons of beef and offal from countries such as Australia, New Zealand, the United States and Canada. Indonesia’s beef and offal demand reached 400,000 tons in 2010.

As local farmers were unlikely to meet demand in the short term, Indonesia would have to import from other sources, namely New Zealand and the US, Suswono said.

“At the same time, we should improve conditions in the 12 slaughterhouses by collaborating with private companies so they will be equipped to international standards,” he added.

Suswono said Australia’s ban should be viewed as a lesson and be used as momentum to expedite measures to achieve the goal of
self-sufficiency.

Australian Agriculture Minister Joe Ludwig told the Australian media on Wednesday that the country would initially impose a six-month halt in live cattle exports to Indonesia, worth US$342 million, and review live export trade to all overseas markets, after a television broadcast depicting cattle being beaten, whipped and maimed prior to slaughter in several slaughterhouses created an uproar.

The impact on Indonesian consumers was felt immediately. State news agency Antara reported on Thursday that beef prices in a traditional market in Tangerang were up an average of 20 percent.

Indonesian Cattle and Buffalo Breeders Association chairman Teguh Boediyana the increases would not exceed 15 percent. He estimated the price of beef in cities would increase to Rp 25,000 (US$2.93) per kilogram, up from Rp 22,000 prior to the ban.

“This is the positive side of the ban. It will benefit the welfare of local [cattle] breeders,” he said.

Ali Gus, an animal science professor from Gajah Mada University, said the impact of the ban was immediate and that the price of beef in traditional markets in Yogyakarta had jumped from Rp 16,000 to Rp 19,000 per kilogram.

A breeder from Srigading Village, Bantul, Central Java testified to the ban’s “positive impacts”, saying that, a month and a half ago, he was offered Rp 7 million for his two cows.

“After the ban, the price has increased, as a buyer has offered Rp 8.5 million per cow, Rp 750,000 more,” he said. In many traditional markets such as in Bantul, the price of cattle has increased between Rp 300,000 and Rp 500,000.

However, the situation could worsen soon, as the fasting month of Ramadhan approaches. Ramadhan, which starts Aug. 1 this year, is notorious for the impact it has on inflation in the country.

“We will import if the situation becomes urgent,” Suswono said.

Trade Minister Mari Elka Pangestu tried to gloss over concerns on the ban’s impacts.

“For now, there’s no need to be worried about a beef shortage in the lead up to the fasting month and Idul Fitri. ... Concerns are unnecessary because the domestic stock will be more than enough,” Mari said.

“There’s no threat of price volatility. We have enough [cattle],” she added.

According to Mari, a plan to improve animal welfare at abattoirs was already in place, and the Australian ban would push the Agriculture Ministry to intensify its work on resolving the plan.
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Japan's nuclear efforst hit a setback

Saturday, March 19, 2011 · Posted in

japanAn unexpected spike in pressure inside a troubled reactor set back efforts to bring Japan's overheating, leaking nuclear complex under control Sunday as concerns grew that so far minor contamination of food and water is spreading.

The pressure increase raised the possibility that plant operators may need to deliberately release radioactive gas, erasing some progress in a nuclear crisis as the government continued its halting response to a catastrophic earthquake and tsunami that savaged northeast Japan on March 11.

A teenage boy's cries for help led police to rescue an 80-year-old woman from a wrecked house in a rare rescue after so many days.

Beyond the disaster area, an already shaken public grew uneasy with official reports that traces of radiation first detected in spinach and milk from farms near the nuclear plant are turning up farther away in tap water, rain and even dust. In all cases, the government said the radiation levels were too small to pose an immediate risk to health. Still, Taiwan seized a batch of fava beans from Japan found with faint — and legal amounts — of iodine and cesium.

"I'm worried, really worried," said Mayumi Mizutani, a 58-year-old Tokyo resident shopping for bottled water at a neighborhood supermarket to give her visiting 2-year-old grandchild. "We're afraid because it's possible our grandchild could get cancer." Forecasts for rain, she said, were an added worry.

Troubles at the Fukushima Dai-ichi nuclear complex threatened to spread more radiation. While all six reactors saw trouble after the disasters knocked out cooling systems, officials reported progress in reconnecting two units to the electric grid and pumping seawater to cool overheating reactors and replenish bubbling and depleted pools for spent nuclear fuel.

But pressure inside the vessel holding the reactor of Unit 3 rose again Sunday, forcing officials to consider the dangerous venting. The tactic produced explosions during the early days of the crisis. Nuclear safety officials said one of the options could release a cloud dense with iodine as well as the radioactive elements krypton and xenon.

The plant's operator, Tokyo Electric Power Co., temporarily suspended the plans Sunday after it said the pressure inside the reactor stopped climbing, though at a high level.

"It has stabilized," Tokyo Electric manager Hikaru Kuroda told reporters. Kuroda said temperatures inside the reactor reached 572 Fahrenheit (300 degrees Centrigrade), and the company wants to minimize radiation releases. The option to release the highly radioactive gas inside is still under consideration if pressure rises, he said.

The higher reactor pressure may have been caused by a tactic meant to reduce temperatures — the pumping of seawater into the vessel, Kuroda said.

Using seawater to douse Unit 3 and the plant's other reactors or storage pools — Unit 4 was sprayed again Sunday — was a desperate measure. Seawater is corrosive, and so is damaging the finely milled machine parts of the plant, rendering it ultimately unusable.

The government acknowledged Sunday that the entire complex would be scrapped once the emergency is resolved. "It is obviously clear that Fukushima Dai-ichi in no way will be in a condition to be restarted," Chief Cabinet Secretary Yukio Edano told reporters.

Growing concerns about radiation add to the overwhelming chain of disasters Japan has struggled with since the 9.0-magnitude quake. The quake spawned a tsunami that ravaged the northeastern coast, killing more than 8,100 people, leaving 12,000 people missing, and displacing another 452,000, who are living in shelters.

Fuel, food and water remain scarce for a 10th day in the disaster. The government in recent days acknowledged being caught ill-prepared by an enormous disaster that the prime minister has called the worst crisis since World War II.

Bodies are piling up in some of devastated communities and badly decomposing even amid chilly rain and snow.

"The recent bodies, we can't show them to the families. The faces have been purple, which means they are starting to decompose," says Shuji Horaguchi, a disaster relief official setting up a center to process bodies in Natori, on the outskirts of Sendai. "Some we're finding now have been in the water for a long time, they're not in good shape. Crabs and fish have eaten parts."

Before the disasters, safety drills were seldom if ever practiced and information about radiation exposure rarely given in Futuba, a small town in the shadow of the nuclear plant, according to 29-year-old Tsugumi Hasegawa. In the aftermath, she is living in a shelter with her 4-year-old daughter and feeling bewildered.

"I still have no idea what the numbers they are giving about radiation levels mean. It's all so confusing. And I wonder if they aren't playing down the dangers to keep us from panicking. I don't know who to trust," said Hasegawa, crammed with 1,400 people into a gymnasium on the outskirts of Fukushima city, 80 miles (50 miles) away.

Another nuclear safety official acknowledged Sunday that the government only belatedly realized the need to give potassium iodide to those living within 12 miles (20 kilometers) of the nuclear complex.

The pills help reduce the chances of thyroid cancer, one of the diseases that may develop from radiation exposure, by preventing the body from absorbing radioactive iodine. The official, Kazuma Yokota, said the explosion that occurred while venting the plant's Unit 3 reactor last Sunday should have triggered the distribution. But the order only came three days later.

"We should have made this decision and announced it sooner," Yokota told reporters at the emergency command center in the city of Fukushima. "It is true that we had not foreseen a disaster of these proportions. We had not practiced or trained for something this bad. We must admit that we were not fully prepared."

Contamination of food and water compounds the government's difficulties, heightening the broader public's sense of dread about safety. Consumers in markets snapped up bottled water, shunned spinach from Ibaraki — the prefecture where the tainted spinach was found — and overall express concern about food safety.

Experts have said the amounts of iodine detected in milk, spinach and water pose no discernible risks to public health unless consumed in enormous quantities over a long period of time. Iodine breaks down quickly, after eight days, minimizing its harmfulness, unlike some other radioactive elements which remain in the environment for decades.

The governor of Fukushima, where milk contaminated with iodine was found at one farm Friday, urged dairy farmers across the prefecture to halt all sales — just short of a ban in consensus-driven, if polite, Japan.

Edano, the government spokesman, tried to reassure the public for a second day running Sunday. "If you eat it once, or twice or even for several days, it's not just that it's not an immediate threat to health, it's that even in the future it is not a risk," Edano said. "Experts say there is no threat to human health."

No contamination has been reported in Japan's main food export — seafood — worth about $3.3 billion a year, less than 0.5 percent of its total exports.

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Japan cites radiation in milk, spinach near plant

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earth quakeIn the first sign that contamination from Japan's stricken nuclear complex had seeped into the food chain, officials said Saturday that radiation levels in spinach and milk from farms near the tsunami-crippled facility exceeded government safety limits.

Minuscule amounts of radioactive iodine also were found in tap water Friday in Tokyo and elsewhere in Japan — although experts said none of those tests showed any health risks. The Health Ministry also said that radioactive iodine slightly above government safety limits was found in drinking water at one point Thursday in a sampling from Fukushima prefecture, the site of the nuclear plant, but later tests showed the level had fallen again.

Six workers trying to bring the Fukushima Dai-ichi plant back under control were exposed to more than 100 millisieverts of radiation — Japan's normal limit for those involved in emergency operations, according to Tokyo Electric Power Co., which operates the complex. The government raised that limit to 250 millisieverts on Tuesday as the crisis escalated.

Officials said the crisis at the plant appeared to be stabilizing, with near-constant dousing of dangerously overheated reactors and uranium fuel, but the situation was still far from resolved.

"We more or less do not expect to see anything worse than what we are seeing now," said Hidehiko Nishiyama of the Nuclear and Industrial Safety Agency.

Japan has been grappling with a cascade of disasters unleashed by the 9.0-magnitude earthquake on March 11. The quake spawned a tsunami that ravaged Japan's northeastern coast, killing more than 7,600 people and knocking out cooling systems at the Fukushima Dai-ichi nuclear plant, causing the complex to leak radiation.

More than 11,000 people are still missing, and more than 452,000 are living in shelters.

Chief Cabinet Secretary Yukio Edano, meanwhile, insisted the contaminated foods "pose no immediate health risk."

The tainted milk was found 20 miles (30 kilometers) from the plant, a local official said. The spinach was collected from six farms between 60 miles (100 kilometers) and 75 miles (120 kilometers) to the south of the reactors.

Those areas are rich farm country known for melons, rice and peaches, so the contamination could affect food supplies for large parts of Japan.

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More tests was being done on other foods, Edano said, and if they show further contamination, then food shipments from the area would be halted.

Officials said it was too early to know if the nuclear crisis caused the contamination, but Edano said air sampling done near the dairy showed higher-than-normal radiation levels.

Iodine levels in the spinach exceeded safety limits by three to seven times, a food safety official said. Tests on the milk done Wednesday detected small amounts of iodine-131 and cesium-137, the latter being a longer-lasting element that can cause more types of cancer. But only iodine was detected Thursday and Friday, a Health Ministry official said.

After the announcements, Japanese officials immediately tried to calm an already-jittery public, saying the amounts detected were so small that people would have to consume unimaginable amounts to endanger their health.

"Can you imagine eating one kilogram of spinach every day for one year?" said State Secretary of Health Minister Yoko Komiyama. One kilogram is a little over two pounds.

Edano said someone drinking the tainted milk for one year would consume as much radiation as in a CT scan; for the spinach, it would be one-fifth of a CT scan. A CT scan is a compressed series of X-rays used for medical tests.

The Health Ministry said iodine levels slightly above the safety limit were discovered Thursday in drinking water samples from Fukushima prefecture. On Friday, levels were about half that benchmark; by Saturday, they had fallen further.

Drinking one liter of water with the iodine at Thursday's levels is the equivalent of receiving one-eighty-eighth of the radiation from a chest X-ray, said Kazuma Yokota, a spokesman for the prefecture's disaster response headquarters.

The trace amounts of iodine were found in Tokyo's water on Friday, the first day since the government ordered nationwide daily sampling due to the nuclear crisis, the Ministry of Education, Culture, Sports, Science and Technology said. A ministry statement said the amounts found did not exceed government safety limits. But tests on water, which for decades were only done once a year, usually show no iodine.

At the Fukushima plant, emergency workers have been struggling to cool the reactors and the pools used to store used nuclear fuel, as well as to put the facility back on the electricity grid.

A replacement power line reached the complex Friday, but workers needed to methodically work through badly damaged and deeply complex electrical systems to make the final linkups without setting off a spark and potentially an explosion. Company officials hoped to be able to switch on the cooling systems Sunday.

Once the power is reconnected, it is not clear if the cooling systems will still work.

A fire truck with a high-pressure cannon pumped water directly from the ocean into one of the most troubled areas of the complex — the cooling pool for used fuel rods at the plant's Unit 3. Because of high radiation levels, firefighters only went to the truck every three hours to refuel it.

Holes were also punched in the roofs of units 5 and 6 to vent buildups of hydrogen gas, and the temperature in Unit 5's fuel storage pool dropped after new water was pumped in, according to officials with Tokyo Electric Power Co., which owns the complex.

More workers were thrown into the effort — bringing the total at the complex to 500 — and the safety threshold for their radiation exposure was raised 2 1/2 times so they could keep working.

Officials insisted that would cause no health damage.

Edano said conditions at the reactors in Units 1, 2 and 3 — all of which have been rocked by explosions in the past eight days — had "stabilized."

The reactors and the storage pools both need constant sources of cooling water. Even when they are taken from reactors, uranium rods remain very hot and must be cooled for months, possibly longer, to prevent them from heating up again and emitting radioactivity.

Low levels of radiation have been detected well beyond Tokyo, which is 140 miles (220 kilometers) south of the plant, but hazardous levels have been limited to the plant itself.

People evacuated from around the plant, along with some emergency workers, have tested positive for radiation exposure. Three firefighters needed to be decontaminated with showers, while among the 18 plant workers who tested positive, one absorbed about one-tenth of the amount that could induce radiation poisoning.

Outside the bustling disaster response center in the city of Fukushima, 40 miles (60 kilometers) northwest of the plant, government nuclear specialist Kazuya Konno was able to take only a three-minute break for his first meeting since the quake with his wife, Junko, and their children.

"It's very nerve-racking. We really don't know what is going to become of our city," said Junko Konno, 35. "Like most other people, we have been staying indoors unless we have to go out."

She brought her husband a small backpack with a change of clothes and snacks. The girls — aged 4 and 6 and wearing pink surgical masks decorated with Mickey Mouse — gave their father hugs.

The government conceded Friday that it was slow to respond to the crisis and welcomed ever-growing help from the U.S. in hopes of preventing a complete meltdown.

Nishiyama, of the nuclear safety agency, also said backup power systems at the plant had been improperly protected, leaving them vulnerable to the tsunami.

The failure of Fukushima's backup power systems, which were supposed to keep cooling systems going in the aftermath of the earthquake, let uranium fuel overheat and were a "main cause" of the crisis, Nishiyama said.

"I cannot say whether it was a human error, but we should examine the case closely," he told reporters.

A spokesman for Tokyo Electric said that while the generators were not directly exposed to the waves, some electrical support equipment was outside. The complex was protected against tsunamis of up to 5 meters (16 feet), he said. Media reports say the tsunami was at least 6 meters (20 feet) high when it struck Fukushima.

Spokesman Motoyasu Tamaki also acknowledged that the complex was old, and might not have been as well-equipped as newer facilities.

The crisis has led to power shortages and factory closures, and triggered a plunge in Japanese stock prices.

On Saturday evening, Japan was rattled by 6.1-magnitude aftershock, with an epicenter just south of the troubled nuclear plants. The temblor, centered 150 kilometers (90 miles) northeast of Tokyo, shook buildings in the capital.

 

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G20 finance ministers resist US pressure over trade

Friday, October 22, 2010 · Posted in

US proposals that countries set targets to reduce trade imbalances appeared to be running into opposition at the G20 meeting of leading economies.

US Treasury Secretary Timothy Geithner wrote to G20 members on Friday suggesting limiting surpluses and deficits to a percentage of output.

But Japan, Germany and Russia expressed opposition to what one delegate called "planned economy" thinking.

The proposal is seen as mainly directed at China, which had yet to comment.

Washington has for months been pressing China - without success - to let its currency appreciate.

Getting Beijing to tackle its large trade surplus would be an indirect way of forcing the yuan to rising in value.

In his letter to G20 colleagues on the opening day of a meeting of finance ministers in South Korea, Mr Geithner said countries should aim to reduce surpluses or deficits to a targeted share of gross domestic product.

US officials said the target would be 4% of GDP by 2015. China's current account surplus was 4.9% of GDP in the first half.

Japanese Finance Minister Yoshihiko Noda summed up the mood among other big exporters, including Germany, saying Mr Geithner's proposal was "not realistic".

Australian Treasury Secretary Wayne Swan said he was not sure a "one-size-fits-all" approach could work.

Tensions over exchange rates are like to dominate the meeting, being held ahead of a summit by heads of state next month.

Common approach

The G20 finance ministers are trying to find a co-ordinated path out of the financial crisis and avert what some leaders have called "currency wars".

Many countries have been happy to see the value of their currencies fall, as it boosts their export competitiveness.

The US has accused Beijing of resisting upward pressure on the yuan by buying dollars, thereby making America's exports to China more expensive.

However, China has expressed unhappiness at what it sees as foreign interference in what it believes is an internal matter.

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Cuba details taxes for the self-employed

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The Cuban government has outlined the taxes that will have to be paid by the country's growing number of self-employed workers.

It is the latest stage of President Raul Castro's reforms to move Cuba away from a solely state-run economy.

Self-employed workers will have to pay 10% income tax, while those who take on staff will pay more.

It comes after the government announced last month that it was laying off half a million state workers.

Cuba's new tax code is detailed in the latest edition of the country's Communist Party newspaper - Granma.

The article includes an explanation that no government can provide services without gaining tax revenues.

In addition to the 10% income tax, workers will pay another 25% into a social security account from which they will in time draw a pension.

The coverage in Granma adds that successful businesses will see their tax burden rise as they take on more staff.

The government is reducing the once all-encompasing role of the state in the hope that it will boost a stagnant economy.

However, people setting up their own firms will be limited to just 178 professions, including car maintenance and rabbit farming.

(bbcnews)

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Pertamina can increase oil lifting to 200,000 bpd

Monday, May 17, 2010 · Posted in

State Enterprises Minister Mustafa Abubakar said that state-owned oil firm Pertamina was able to increase its oil and gas lifting from 182,000 barrels per day (bpd) to 200,000 bpd by maximizing its existing oil and gas fields.

"I hope that Pertamina would maximize the production of Cepu field which so far has not yet been fully exploited," the minister said here on Sunday.

The minister said he had asked the board of commissioners of Pertamina to make efforts so that Pertamina would be able to meet its production target.

He said that he had not yet received any report even if he had just had an audience with Pertamina commissioners. They had not yet talked about liquefied petroleum gas. They had talked about lifting.

Increasing gas lifting would depend on the operations of gas receiving terminals.

Pertamina and state-owned gas distributor firm PGN were asked to cooperate in managing the Arun gas stock tanks.

He did not provide details on funds needed for that purposes.

"What is certain is that a big fund would be needed. Pertamina has enough funds for the development of the upstream sector," the minister said.

Pertamina has allocated capital expenditure for 2010 amounting to Rp39 trillion, or a sharp increase of 56.4 percent from that in 2009 which stood at Rp22 trillion.

The increase in the capital expenditure is to support the increase in the number of new projects owned by Pertamina and the plan to develop new refinery plants.

Of the Rp39 trillion, 70 percent would be used for activities in the upstream sector, the remaining 30 percent would be allocated for down stream activities.

Mustafa said that in order to finance capital expenditure, the government was planning to issue bonds and ask for loans for working capital to boost oil production.

"So far, Pertamina`s oil lifting reached 182,000 bpd and is expected to increase to 200,000 bpd," the minister said.
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RI, Germany hold 1st senior officials consultation meeting

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The Indonesian and German governments held the first senior officials consultation meeting here on Monday to follow up the results of President Susilo Bambang Yudhoyono`s visit to Germany in December 2009.

The meeting discussed efforts to promote bilateral cooperation in various fields for the benefit of the two peoples` welfare besides regional and global issues of common interests, the Indonesian Foreign Ministry said in a statement.

Indonesia hoped the bilateral consultation would serve as a regular forum to explore the possibility of new cooperation between the two countries as well as to discuss possible hindrances to the realization of bilateral cooperation, the statement said.

Meanwhile, Germany deemed it necessary to hold the consultation meeting regularly, realizing that Indonesia was a large democratic country which had strong economy and influence in the region, it said.

The Indonesian delegation to the meeting was led by the ministry`s director general of America and Europe, Ambassador Retno L.P. Marsudi, accompanied by the chief of the Indonesian mission in Berlin, Ambassador Eddy Pratomo, director of western Europe Dewa Made Juniarta Sastrawan, and relevant officials of the ministry.

The German delegation was meanwhile led by the director general of Asia and the Pacific at the German Foreign Ministry, Ambassador Cyrill J. Nunn, accompanied by German Ambassador to Indonesia Dr. Norbert Baas, officials of the ministry`s directorate general of culture and staff members of the German embassy in Jakarta.
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Riau Airlines injected with rp55.4 billion

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A general meeting of shareholders agreed to inject Rp55.4 billion into Riau Airlines to improve the company`s performance and for buying more planes.

President Commissioner of Riau Airlines Wan Syamsir Yus said after attending the general meeting of the airline company`s shareholders in Pekanbaru on Monday night that up to the end of December this year two planes will be used on hire-purchase basis in mid-June and early in July 2010 namely a Boeing 737-500 and Boeing 737-300 from Hong Kong.

The shareholders also agreed to the company`s plan on an operational cooperation with European companies in operating 14 Embraer ERJ 145 jets and seven Embraer E 170s.

The company`s management also had been asked to make a financial evaluation of a number of shareholder routes and a request that each new route will be served if meeting the requirements and income criteria of the new routes covering operational cost.

"The president commissioner has the task of controlling and reporting the developments of Riau Airlines once in every three months to the shareholders," Wan Syamsir said.

For the company`s internal improvements, he said the state airline company in Sumatra island also needs to conduct efficiency measures in various fields and managerial improvement like organizational restructuring, optimizing work, review of remunerations and use of operational expenses.

The Riau administration as majority shareholder of Riau Airlines said commitment to give a capital for performance improvements.

President Director of Riau Airlines Teguh Triyanto, who had been installed only five months ago as a pilot, said he will conduct external and internal reforms as agreed to in the shareholders general meeting.

"As employee, we are ready to give the best for the company and focus on improvement of services and fly to the regions of Sumatra island," said Teguh who was once Vice President of PT Garuda Indonesia.
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Batam Authority seeking private developers of apartment

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The Batam Authority will seek other developers to build private apartment houses if those who had been granted land permits still had not started building their projects for lack of profit reasons.

"We will tell them to return the permits so that we could give them to truly serious developers," Director of Workers` Residences and Social Development of the Batam Authority Fitrah Kamaruddin said in Batam on Monday.

Right now it has been more than three years that 52 developers had control of plots of land of the Batam Authority for private apartment houses.

"It was only in Batam Centre Park that private developers cooperated with PT Jamsostek and State Savings Bank (BTN) in building apartment houses," he said.

Batam has a population of 1.025 million people, including 300 thousand industrial workers, but only 10 thousands of them have apartment houses.

Those who are not staying at the dormitories of their industries, had to rent type-21 houses, while subcontract workers are allowed to stay at room of shop houses.
In the meantime, some formal workers are staying or renting rooms in illegal residential complexes built on government land.

The Batam Authority, Fitrah added, has built apartment houses in strategic areas to enable the workers to reduce their transportation expanses, enjoy electricity, clean water, and security.

The Batam city administration has in mid-2009 completed the construction of four apartment buildings with 390 family rooms in Sei Harapan village, Sekupang, side by side with four apartment buildings built several years ago under the management of Batam Authority.

Some of the tenants of the Batam Authority apartment houses have moved to those of Batam city administration which Fitrah said were actually built for informal workers with wages of less than Rp 2 million per month.

"This is obviously to our detriment", he said.

The tenants of the formal sector, he said, disagreed with the consensus between the Batam city administration and the Batam Authority, namely that the Batam city administration apartment houses in Sei Harapan were built to remove the illegal houses.

The Batam Authority has repeatedly warned the management of the Batam city administration apartment houses in Sei Harapan to obey the agreement and the task of removing the illegal settlements.

"No improvements are in sight, except promises," Fitrah said.
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