Covering an area of almost 400 square kilometers, Palu City is blessed with unique landscapes. A river is flowing down from the south, while on the west and east sides the mountainous landscapes extend to the north, forming beautiful coastal bay with the sceneries of mountains, river, ocean and coastal lines that make this city dubbed as the four dimensions.

Palu is run with the vision of becoming the City of Bay based on tourism, industry and trading, as well as

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Palu, �e City of Bay on �e Rise

The President PostT H E S P I R I T O F I N D O N E S I A

SPECIAL REPORT / SEPTEMBER 2014 / PALU

ecological knowledge. While the missions are to actualize a clean, prestigious, and democratic governance; to actualize a competitive human resources; to actualize city infrastructures based on ecological knowledge; and to actualize the city economics based on tourism, industry and trading.

A Master Plan of 1,500 hectares special economic zone called Palu Industrial Estate (PIE) has been prepared, to be integrated with the Pantoloan Port. The location of this industrial estate is also only 20

minutes from Mutiara SIS Aljufrie Palu Airport, in which its terminal was just expanded to 4,800 square meters and able to accommodate 800 passengers per day.

To commemorate its 36th anniversary, Palu City will hold the 6th Palu Bay Festival on 27-29 September 2014. The festival will present various attractions, ranging from stage and street performances, many kinds of competitions, culinary and exhibitions. (ing)

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The old buildings across Sultan Hasanuddin street, close to Gedung Juang (Veteran's Building, 1930), are protected under the government’s Program Plan of SimbioCity, making them the historical landmarks of Palu City.

Palu has been promoting itself as a safe, green and clean city. In order to achieve that, some of innovative programs has been running or designed, involving all people in waste management and the preservation of the environment. These innovative approaches are integrated into Green City Development Program (known as P2KH).

The public campaign on waste management has been running since December 2011, by executing a waste management system based on economy purpose (through recycling), to the achievement of Adipura national awards (an honorable award given to a city with excellent sanitation), and to set an example to every city for good keeping of sanitation, coziness and shadiness.

There are two waste management programs in cooper-ation with Boras City in Sweden. These programs involve all related elements such as the local govern-ment offices, academicians, private sectors, and civil organizations. The Domestic Waste Management is a program focusing on converting the waste into alternative energy, which comes useful and beneficial and sustainable for Palu City.

The SymbioCity is an urban management program which is more comprehensive and sustainable. This program encourages integrative efforts on the improvement of the stakeholders, sharing experiences

Palu City Pro�le: A Piece of Paradise In Equator

Palu City celebrates its anniversary on 27 September, the date when Palu was officially declared as an administrative city in 1978. The Government's Ordinance No.18/1978 about the Establishment of Palu Administrative City marked the birth of the city, previously was the capital of Donggala Regency.

The origin name of Palu, was discovered in many versions of history told by the Kaili or native Palunese as recorded through the writings of former well known humanists such as Masyhuddin Masyhuda, H.A. Mattulada and Djaruddin Abdullah.

Some of the writings explain that Palu comes from the name of a certain plant called buluvatumpalu or volo vatumpalu, which means small bamboo trees that grow across the city, or mpalu which means small size.

Way before the administrative status achieved, Palu had already been mentioned in a journal written by Francois Valentjin, which was later published in 1724 as Oud and Nieuw Oost Indien (The Old and New of East Indian). Palu had also been mentioned in a classic journal published in London, of William Vaughn's The Narrative of Captain David Woodard in 1804. The journal tells the story of Woodard and his four seamen, who got held as captives for two years (1793-1795) after their trading ship, the Enterprise, sank in Makassar Strait, and just nearby of a gulf; this which Woodard said as Parlow, or none other but the place Palu. David Woodard took note of the geogra-phies, customs, and certain local dialogues in Malay language at that time.

(inter cities) on dialogues, and giving guidance on sustainable city analysis in many levels and with multi-disciplines approach.

Palu city has committed to provide the Open Green Space (known as RTH) with a coverage of at least 30 % of total land ofthe urban area, including the front area (Gandaria), the center (Tatangana), and the back (Poavua), as part of the Green Belt Area to support the ecosystem.

With the population per December 2012 at 385.684 people, Palu City is inhabited harmoniously by various ethnics with Kaili as the origin tribe. Agricul-ture is still the dominate sector of which they make a living, with the prime commodities of seaweed, cocoa and rattan.

In addition, tourism is getting momentum too to become a big contributor of the local revenues, especially through the annual Palu Gulf Festival, held every September to celebrate Palu City anniversary. This fiesta is organized at the coastal areas, delivering varieties of art and contemporary performances, competitions and educations.

In Industry and Trade, Palu City has been declared as the Center for National Rattan Innovation through an MoU between the Ministry of Industry and Center for Rattan Innovation of Germany (Innovationszentrum Lichtenfels), signed in Jakarta on 20 February 2013. The declaration was expected to influence the escalation of production and quality of rattan-made furniture, to meet the demands in Central Sulawesi in particular, Indonesia in general and as well as for exports. There are 26 small and middle scale enterprises producing rattan stuff.

TELUK PALUBRIDGE

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Far Looking AheadPrior to serving as the Mayor of Palu City, H. Rusdi Mastura was Chairman of the Board of Representatives (DPRD) of Palu. Then he became Mayor of Palu City in 2005-2010 term and was re-elected for the period of 2010-2015.

Mastura was born in Palu on 8 February 1950 and never thought of being a mayor one day. "I once went to a university in Jakarta, but was not graduated," recalls Rusdi. According to him, becoming a mayor is his fate already written in his life paths. In performing his duties and responsibilities, Rusdi thinks in a simple logic. He wants to alleviate the poverty in Palu City.

In the spirit of development, Rusdi several times offered creative ideas. In 2007, he suggested the idea of building an industrial area. The mission of the development of the industrial park is to become a stimulator for investment climate in Palu that serves as the gate of the investment to the region of Eastern Indonesia. By building and developing quality infrastructure, that is environ-mentally friendly in the interests of investors, both domestic and abroad, it will support the economic growth of Palu in particular and Central Sulawesi in broader perspective.

The Palu Industrial Estate will cover 1,500 ha of area, conveniently located in the city of Palu, the capital city of Central Sulawesi. This area is designed as a modern and integrated industrial zone, with has a comprehensive infrastructure and facilities, and supported by the Palu Promotion Board that provides "One-Stop Services".

In the same year, he wants to make Palu as a trade center of cocoa and rattan handicrafts. Cocoa becomes one of the leading commodities of Palu. Rusdi also asked cocoa farmers to increase the added value in the form of chocolate products so that the selling prices are better than exporting them in the form of raw material. Rusdi has also developed rattan handicraft industry to become one of the flagship products of Palu.

The Chief Executive of Leadership Council (DPD) of Golkar Central Sulawesi is also avid in estab-lishing cooperation with other regional administra-tions and private sectors to develop the Palu City. He never hesitates to come over to the prospective investors to help him elevate the welfare of his people.

In addition to building a partnership with other parties, Rusdi is also committed to creating a clean and efficient bureaucracy by reforming it. He said the reform of the bureaucracy should be able to generate entrepreneurial apparatus, having integri-ty, and trustworthy people. As a result, all of the government officials in Palu are sensitive, respon-sive, and taking the initiative in facing the dynam-ic changes in the society.

Rusdi’s hard works proved fruitful. Palu is known as the largest producer of cocoa and rattan in Indonesia. Now, Rudi is in the middle of boosting the production of seaweed, coconut and mining minerals.

The Palu City has also repeatedly won the award from the Ministry of Health of the Republic of Indonesia as one of the cities with the best level of health. The central government judged that Palu’s achievement in the field of health significantly improved. The healthy behaviors increased, the services at the community health clinics and hospital have improved, and the life expectancy is rising.

One of the Rusdi’s ideas, which is quite surprising, is when he wanted to create a world civilization initiated by the Malay people. Rusdi has learned how the Greeks, Egyptians, Chinese, and Europe-ans once initiated the development of the world. Then, why not Malays? (jok)RUDI MASTURA (MAYOR OF PALU)

AGRIBUSINESS

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Palu City has set to open its door to industry by designing the Master Plan of 1,500 hectares of a special economic zone called Palu Industrial Estate (PIE), to be integrated with the Pantoloan Port. The location of this industrial estate is also only 20 minutes from Mutiara SIS Aljufrie Palu Airport, in which its terminal was just expanded to 4,800 square meters and able to accommodate 800 passengers per day.

According to Palu Mayor H. Rusdy Mastura, the industry to be developed in the PIE would be based on the agricultural prime commodities of Palu, namely cacao, seaweed and rattan. However, there is also a zone allocated for high-tech industry, as well as commercial, education, recreation and residential areas.

“Hopefully this industrial estate will produce export quality products, so that the added value will help elevate the people’s welfare. Besides, it will open about 100,000 jobs,” he said, adding that the phase of the PIE would cover 25 hectares.

The Palu City administration has been promoting the industrial estate by inviting investors to visit the location in April 2014 and Mastura said that a number of investors from domestic and abroad had expressed their interests to invest there. They run businesses on processing agriculture and fishery products, mining,

car assembling, warehousing, and services providing.Some names of the investors have appeared, such as PT Multistrada Arah Sarana will invest Rp15 trillion in the rubber-processing industry. The company owns an 80-hectare rubber plantation in Parigi-Moutong regency.

Shenzen Nanli Engineering Decoration Co. Ltd. from China, will run businesses in logistics (warehousing, packaging, processing and inventory), end-product processing and manufacturing electronic goods, with an overall investment value of Rp10 trillion.

PT Sinosteel Corporation, also from China, will build a nickel-processing plant worth Rp7.6 trillion. PT Intraco Penta will invest Rp4.5 trillion in the assembling, heavy machinery maintenance and automotive industries. The subsidiary of the Volvo automotive company has also set up a representative office in Palu.

In the meantime Big Trade California will establish a cacao-processing plant. The US Consulate General in Surabaya has made a visit to Palu to inspect the Palu KEK project.

Other potentials of Palu can be managed as an industry are coconut, active carbon, canning fish and ground beef, sugar factories, rattan furniture, corn and livestock feed, ebony and bamboo, as well as palm oil processing plants.

In addition to the sea and air ports, the other supported infrastructures are being prepared. The state-owned electricity company PT PLN has been laying the transmission line for supplying 125 megawatt of electricity from its Sulewana Poso hydro-power plant. The installation of the trans-mission line is scheduled to finish by the end of this year.

A 35.7-km Palu-Parigi will also be developed with the budged from the central government at Rp1.5 trillion, out of it Rp50 billion had been disbursed for the initial phase of the project. The Central Sulawesi Provincial Administration has also allocated Rp8 billion for basic infrastructure development inside the Palu Industrial Estate.

Besides industry, Palu has been determined to develop trade, services and tourism to boost its economy. Last year this capital city of Central Sulawesi booked impressive economic growth of around 9%.

Palu Mayor Mastura has been stressing that investing in Palu now is easy as there is one stop service facility. “We have reformed the bureaucracy to make the investors easier to get business licenses. They can even take care of the necessary licenses in our representative office in Jakarta, not always have to fly to Palu.” (ing)

Palu Steps Into Industry, Based on Agribusiness

SPECIAL REPORT / SEPTEMBER 2014 / PALU www.presidentpost.comWebsite Twitter @President_Post Facebook The President Post

Poso II Hydro Electric Power Plant (Poso II HEPP)The Poso II Hydro Electric Power Plant (HEPP) was built by PT Poso Energy, a subsidiary of the Kalla Group owned by vice president elected Jusuf Kalla, at a cost of around Rp 4 trillion in 2005.

Poso 2 hydro electric power with a capacity of 3 x 65 MW built with the concept of run-off river, without a dam. The flow of river water flows in open channel and soothed the pool tranquilizers (headpond).

Furthermore, the water flowed rapidly on 3 pieces of steel pipe (penstock) to the turbine each with a capaci-ty of 65MW with high water falls 158 m.

After moving the turbine, and the water is returned to the original river flow through the tail race channel in the form of an open water channel back to the original stream.

The Poso PLTA 2 was completed by local experts and did not involve any foreign experts. The Poso PLTA has employed more than 2,000 workers, 70 percent of whom are local residents.

Hydro Electric Power Plant development was due to develop economic conditions in the regency in particu-lar, and Central Sulawesi in general, as well as prove that Poso was worthy of being turned into a prospec-tive investment area.

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POSO IIHEPP

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DSLNG represents a major investment that will generate economic growth for Central Sulawesi through multiplier effects in social, economic, and infrastructure development.

DSLNG provides an opportunity to develop gas reserves that have been stranded for many decades. The initiatives have come from Indonesia's national energy company PT Pertamina (Persero) and PT Medco Energi Internasional, Tbk., together with international companies, namely Mitsubishi Corporation and Korea Gas Corporation.

The DSLNG plant is located in the Banggai Regency in the Province of Central Sulawesi and is situated about 25 km south-east of Luwuk, the main town of Banggai Regency.

The plant site comprises about 100 hectares of land along the coast facing the Peling Strait, which provides a deep-sea route from Surabaya and Makassar to Luwuk and Manado.

DSLNG was established as a foreign investment company on 28 December 2007, with shares owned by Pertamina Energy Services Pte. Ltd. (29%), PT Medco LNG Indonesia (20%), and Mitsubishi Corporation (51%). Since February 2011, however, the ownership structure has changed to PT Pertamina Hulu Energi (29%), PT Medco LNG Indonesia (11.1%) and Sulawesi LNG Development Ltd. (59.9%).

DSLNG is the first Indonesian LNG project developed as a "downstream business activity" based on Law No. 22 of 2001, which enables separate development of upstream (feedstock gas supply) and downstream (LNG manufacturing) businesses.

A downstream LNG development model benefits the country as it shifts the investment and the associated risks of the LNG plant development from the Government of Indonesia to a downstream company.

Multiplier E�ects of Donggi Senoro Liquid Natural Gas (DSLNG)

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DONGGI SENOROLIQUID NATURALGAS

SMI Group of Companies is the newest major player in Indonesia’s nickel mining industry exporting average of 1.8% nickel ore grade.

Strategically located in Sulawesi Island, it posses the largest single whole block of Nickel mining concessions in Indonesia. Currently probably the biggest Indonesian exporter of 1.8% Nickel Ore grade through one single port and will further solidify this position with mining production almost doubling in the next 2 to 3 years.

Our Indonesian mining site operations is easily accessible via Jakarta. Major Indonesian national airlines fly from Jakarta to Kendari City, Southeast Sulawesi.

Thereafter, we transfer to our twin engine air conditioned speed boat in 3-hour voyage time from Kendari City to our Morowali Mining Camp Complex. It can also be reached by a 7~8-hour drive overland using the national highway.

Vision: To be the number one nickel producer in the world in terms of excellent operating standards across the entire spectrum of mining operations.

Mission : To be the best Indonesian corporate model in good corporate governance and corporate social responsibility in achieving an eco-friendly management of mineable resources.

Sulawesi Mining Investment

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SPECIAL REPORT / SEPTEMBER 2014 / PALU

Bintang Delapan MiningStrategically located in Sulawesi Island of Indonesia.

Possessing the largest single whole block of Nickel mining concessions.

Currently probably the biggest Indonesian exporter of 1.8% Nickel Ore grade through one single port and will further solidify this position with mining production almost doubling in the next 2 to 3 years.

Rental of heavy mining equipment to affiliated mining companies is geared to optimize mining production capabilities.

Our mining production and maintenance engineers; geologists and technicians have a cumulative professional experience of over 100 years working with both listed and non-listed Indonesian companies.

The company is a pioneering leader in Corporate Social Responsibility in the communities it operates.

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BINTANGDELAPAN

Since the 15th century, Palu Bay was visited by the Portuguese and Spanish trade ships and commercial boats from all over the archipelago and has held a variety of commercial contacts with the islands of Southeast Asia. Similarly, the spread of Islam, which is believed to be brought in by people from the ships anchored in the Bay of Palu in the 17th century.

The native tribe who inhabits the valley and the coast of the Bay of Palu is the Kaili ethnic, spreading in Palu, Donggala, Sigi, Parigi Moutong up to North Mamuju Regency in West Sulawesi

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Palu Bay Festival, 27-29 September 2014

Palu Bay At A Glance

As the actualization of community-based ecotourism programs, the local government of Palu will hold the Palu Bay Festival on 27-29 September 2014. Although the annual event has been running since 2003, but this year it will be the sixth because it was three times absent in 2007, 2008, and 2009.

Thousands of people from Palu and other cities are expected to flock at the event, like what happened last year and the years before. Various attractions will be available, from stage and street performances, many kinds of competition, culinary and exhibitions.

The rundown of the event will be started with the carnival where about 500 people will show off their glamour outfits in unique designs, walking along the coastal line from Talise Beach to Panggaraman. The materials they use not only fabrics, but also tree bark, rattan, bird feathers and so on. The designs will depict the heterogeneity of ethnics in Palu, from the native tribe of Kaili, Balinese, Javanese, Dayak and others.

The carnival will be led by a drum band, and in between of the street fashion show, there will be street performances like traditional cultural performance of Barong (Bali), Kuda Lumping (Jawa), as well as traditional music performance from Palu origin with bamboo instruments and tambourines (rebana).

Palu Bay has a topographically diverse coastline, from the vertical cliffs and steep, sloping white sand, rocky coast, estuaries and river deltas to the lush mangrove forests, is a haven for biodiversity and coastal ecosystems. The beauty of coral reefs in Palu Bay with various kinds of fish and marine lives which include endemic species makes this bay is also the potential for underwater tours. A bridge is a landmark city of Palu, which allows us to enjoy the ocean landscape to the north, east hills, rivers and mountains of the southern part of the western section; a landscape that is rare to find a counterpart in the world.

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PALU BAYFESTIVAL

The music festival will be staged presenting various groups of music, from traditional-based to the modern ones. Another stage will present the traditional art performances, from music, dances as well as people’s theaters.

The festival also includes various kinds of competition. There will be the Randa – Kabilasa contest, selecting a young couple as the ambassadors of Palu; the swimming competition in the offshore; the race of sailing boats; the competition in adorning rafts; the culinary competition; the competition of adorning the horse carts; and a horse race.

Meanwhile in the exhibition department, there will be an exhibition of dragon boats; an exhibition of photography in which the photos on display are the winners of the photography competition; and an exhibition of tourism related products. Fun bike for all with the route along the coastline of the Palu Bay will also be held.

For the visitors coming from outside the Palu City, the 61 hotels and inns (guest houses) are ready to accommodate them. Star-rated hotels include Swissbel, Santika, Palu Golden, Grand Mulia, Grand Duta, and Jazz Hotel.

province. The fishermen on the coast of this beautiful bay still continue to preserve the tradition and its maritime heritage. Their boats with a unique and distinctive shape are still sailing in the bay whose deepest water reaches 400 meters. Economy and investment is growing and growing very rapidly around the coast of the bay, including fishermen, traditional salt farmers, shop and cafe selling various culinary and restaurant serving traditional food and seafood. (ing)