[Kabar-indonesia] 15 RI Biz/Econ Reports: US$137m WB Water/Sanitation Loan; Telkom; Rabobank

[JoyoNews at aol.com]

15 Reports:

- Indonesia gets 137.5 mln usd World 
  Bank loan for water supply/sanitation 
  project
- Goldman Sachs ups Telkom price
    target, adds to buys
- Interview: Interview: Rabobank Eyes 
  Indonesia Retail, SME Customers
- Rabobank To Acquire Indonesia 
  Bank Haga, Bank Hagakita
- JP: Jakarta Futures Exchange limits 
  sales agent commissions to 40% 
- JP: Lower rates revive mutual-fund shine 
- Indonesia's Noble Finance assigned
    'B' rating - Fitch
- Indonesia's Noble Finance plans
    bonds -source
- Indonesia's Astra Daihatsu to import
    small sedans from Malaysia
- Indonesia's Adhi Karya H1 revenue 
  1.50 trln rupiah vs 1.11 trln rupiah: report
- Malaysia's Pantai Hldgs forms jv with 
  Indonesia's Jasa Sarana on waste 
  mgmt svcs
- Singapore's Gallant Venture sells 
  Indonesian property for 34 mln sgd
- Imported meat must be safe and 'halal':
    Indonesian minister
- Asian Cocoa: Indonesian, Malaysian 
  Physicals Up On Week
- WSJ: Banks in Japan Gear for a Boom
  [With Expected Increase in Rates, Signs 
  Point to Rush on Borrowing, Bond Trading, 
  Advisory Services]

Indonesia gets 137.5 mln usd World Bank 
loan for water supply/sanitation project

JAKARTA, July 13 (XFN-ASIA) - The World Bank board has approved a
137.5 mln usd loan to finance a seven-year Indonesian water supply and
sanitation project that will cover some 100 districts in 12 provinces.

The World Bank said in a statement that the project, which aims to
improve the water supply, sanitation and hygiene of some 5,000 poor
communities throughout the country, will cost a total of 275 mln usd.

It said the Indonesian government will provide the balance of the funding.

The World Bank said the project is expected to benefit around 6-10 mln
poor Indonesians.

The bank has pledged an estimated 900 mln usd usd loan for the country
this year through the Consultative Group on Indonesia (CGI).

------------------------------------

Goldman Sachs ups Telkom price target, adds to buys

JAKARTA, July 13 (Reuters) - Goldman Sachs upgraded its price target
of PT Telekomunikasi Indonesia Tbk , Indonesia's largest
telecommunication company, to 9,300 rupiah ($1.02) per share from
5,600 rupiah previously.

The brokerage also said late on Wednesday that it has added the
largest capitalised firm in Jakarta Stock Exchange to its buy list.

--------------------------------

Interview: Rabobank Eyes Indonesia Retail, SME Customers

By Nicolas Parasie

AMSTERDAM, July 13 (Dow Jones)--Dutch Rabobank (RBK.YY), with its
acquisition of two Indonesian banks, is taking steps to expand into
the local market for small- to midsize enterprises and the retail
sector, a company executive told Dow Jones Newswires on Thursday.

The Dutch bank earlier Thursday said it acquired Bank Haga and Bank
Hagakita for an undisclosed sum.

"The infrastructure (of Haga and Hagakita) and its clients will serve
our purpose well to gain access into the small- and medium-sized and
retail sector," executive board member Hans ten Cate said.

Rabobank in the past 16 years has had an office in the capital,
Jakarta, and has mainly focused on wholesale banking, or the "upside"
of the market. With the acquisition Haga and Hagakita, which were
internally referred to under the code name "Twin Peaks," Rabo wants to
grow further into its prime area of expertise, financing to food and
agricultural firms, ten Cate said.

Developing a network from Rabobank's current activities in Indonesia
was one possibility, but would have taken at least five to 10 years,
ten Cate said.

The 78 branches of the two banks are located in the large cities of
Java, Sumatra and Bali, ten Cate said. Rabobank, which is active in
almost 40 countries worldwide, is mainly activein rural areas
throughout its operations.

The Utrecht-based bank was founded at the end of the 19th century as a
collection of rural lenders and last year made more than EUR2 billion
in net profit. It boasts of being the sole unlisted company to hold a
Triple A credit ratings from Standard & Poor's and Moody's agencies.

Incorporated in 1989, Haga and Hagatika jointly have 78 branches and
1,500 employees. Their main customer base consists of small- to
midsize enterprises, but also retail clients.

"The two banks have their own growth scenario. We certainly didn't buy
them to put them in a cage preventing them from taking any decisions,"
Ten Cate said.

Ten Cate said the growth prospects of both banks look promising, but
that it couldn't be compared to European and American scenarios. "It
goes at more relaxing pace here," he said.

Rabobank expects to complete the purchase by August, after which it
might introduce a reorganization, but ten Cate said it was unlikely
that it would have any drastic consequences.

Bank Haga and Bank Hagakita together made IDR45.5 million, or roughly
EUR4 million, an amount Ten Cate called modest but healthy. "We're
doing it for their infrastructure and clients," ten Cate said.

Rabobank said the Indonesian economy is the largest in Southeast Asia
with a value of $260 billion and annual growth of 5%-6%, but ten Cate
at the same time acknowledged that the Indonesian market was a
difficult one. It is also characterized by high unemployment, a
fragile banking system and widespread corruption.

"It's certainly a developing market, but we're in it for the long
term," Ten Cate said.

Rabobank will also expand its retail network in Indonesia, although
there were no specific targets yet, ten Cate said. With 1,300
branches, Rabobank is the largest retail bank in the Netherlands.

The Utrecht-based bank has no immediate plans to rebrand the twin
banks into Rabobank. "There are no concrete agreements yet. But most
banks say they won't make too many changes initially, but then 10
years later you notice the differences," ten Cate said.

Indonesia has a predominantly Muslim population and Rabobank will
consider offering Islamic banking products. "That's certainly
something we're looking at," he said. Ten Cate spent part of his
career in Dubai and said he saw Islamic banking developing from close
range.

The Rabobank executive said there were several other opportunities in
the region, but that they require hefty investments and management
attention. Therefore, it would be unlikely that Rabobank would make
another acquisition in the next year, ten Cate said.

-----------------------------------

Rabobank To Acquire Indonesia Bank Haga, Bank Hagakita

JAKARTA, July 13 (Dow Jones)--Netherlands-based Rabobank (RBK.YY) said
Thursday that it signed an agreement to buy into the holding companies
that own two unlisted Indonesian banks, Bank Haga and Bank Hagakita,
from individual shareholders.

"Bank Haga and Bank Hagakita have an impressive track record of
consistent growth since their founding 17 years ago. This is an
exciting platform for Rabobank to grow our business in Indonesia,"
said Fergus Murphy, head of Asia region for Rabobank International.

The press release didn't provide the size of the acquisition nor its
value. [ 13-07-06 0632GMT ]

The two Indonesian banks which primarily focus on serving owners of
small and medium-sized businesses in the trading, manufacturing and
business services sectors, have a combined 1,537 employees and a
network of 78 branches in Java, Bali and southern Sumatra. The two
banks had a total assets of IDR3.97 trillion ($436 million) as of Dec.
31.

Meanwhile, Rabobank, which is the world's 14th-largest bank in terms
of Tier I capital, has an existing Indonesian subsidiary PT Bank
Rabobank International Indonesia. The local subsidiary has been in
business for 16 years and focuses primarily on corporate clients.

The press release said the acquisitions are consistent with Rabobank's
strategy of being the world's leading financier in the food and
agribusiness sectors.

The bank said the Indonesian economy is the largest in the Southeast
Asian region with a total value of around $260 billion and an annual
growth of 5% to 6%. Food and agricultural plays an important part in
the economy contributing around 15% of Indonesia's gross domestic
product with an annual turnover of $23 billion.

It said Indonesia has a thriving small and medium enterprise sector
and strong growth in retail and SME banking services. "As such, the
acquisitions of Bank Haga and Bank Hagakita fit well with the
Rabobank's global strategy," it added.

----------------------------------

The Jakarta Post
July 13, 2006

Jakarta Futures Exchange limits 
sales agent commissions to 40% 

The Jakarta Post, Jakarta

The Jakarta Futures Exchange (JFX) will limit the commission paid by brokers 
to their sales agents to a maximum of 40 percent of the brokerage fees they 
receive from their clients as part of an effort to ensure ethical practices on 
the local futures market.

JFX president director Hasan Zein Mahmud said during a press conference 
Wednesday that the restriction was included in a new directive that would come into 
effect Aug. 1. 

To date, there have been no rules limiting the size of the commissions paid 
by brokerage firms to their sales agents. 

Hasan explained that gifts to sales agents would be included in calculating 
the commissions they received. 

He said that under JFX Circular No. 133/2006, brokers were also forbidden to 
receive, either directly or indirectly, any share of the revenue arising from 
the spread obtained by other brokers under the Alternative Dealing System. 

The new rules also required brokers to disclose their detailed costs, 
including costs arising from differential interest rates and rolling fees, to their 
clients before sealing a deal. 

"Brokers will also be prohibited from offering rebates to clients," he said. 

If found in violation of the new directive, brokers will be subject to 
sanctions in the form of reprimands, suspension, and, ultimately, revocation of 
their licenses. 

On June 12, the JFX revoked the license of PT Batavia Futures for violating 
futures exchange regulations. 

The revocation of Batavia Futures' license, however, did not absolve it of 
its financial obligations to its clients and the JFX. 

Meanwhile, Hasan also said that sales agents would be obliged to undergo 
training and examination in order to ensure they satisfied the minimum standards 
required for them to properly do their jobs. 

According to the JFX, of a total of 4,458 sales agents employed by brokerage 
firms, only 3.38 percent of them possessed licenses to work as brokerage 
agents. 

"This is the main reason for the JFX's bad image," said Hasan. 

-----------------------------------

The Jakarta Post
July 13, 2006

Lower rates revive mutual-fund shine 

The Jakarta Post, Jakarta

After experiencing a disastrous wave of redemptions earlier last year, the 
mutual fund industry is showing signs of revival, notching up a 16 percent 
increase in the value of managed assets during the first half of the year.

Figures from the Capital Market Supervisory Agency (Bapepam) show that as of 
the end of June 2006, total net asset value (NAV) stood at Rp 33 billion 
(around US$36,540), compared to Rp 28.4 billion as of the end of December 2005. 

According to the president director of PT Fortis Investment, Eko Priyo 
Pratomo, Bank Indonesia's decision to start gradually lowering interest rates this 
year was one of the reasons why investors were now showing more interest in 
mutual funds. 

"We are confident that total assets under management will grow by 20 percent 
this year, considering that Bank Indonesia will continue lowering its key rate 
later this year in line with falling inflation," he told journalists during a 
press conference Wednesday. 

Due to falling inflation in the first half of the year, the central bank 
reduced its key rate by 25 basis points to 12.25 percent last week. This was the 
second rate cut in three months. 

"We can see that the inflation will remain under control and will probably 
drop to 8 percent by the end of this year," said Eko. 

Last year's inflation came in at 17.11 percent. 

As a result, Eko predicted that the central bank would gradually cut its key 
rate further to 11 percent by December. 

Bank Indonesia has said that the rate could come down to as low as 10 percent 
by the end of this year if inflation fell to 8 percent.

--------------------------------------

Indonesia's Noble Finance assigned 'B' rating - Fitch

JAKARTA, July 13 (XFN-ASIA) - Fitch Ratings has assigned a 'B'
long-term foreign currency issuer default rating (IDR) to Noble
Finance BV, with a stable outlook.

Fitch has also assigned an expected rating of 'B' and an expected
recovery rating of 'RR4' to the proposed 240 mln usd senior secured
notes due 2011 to be issued by Noble Finance BV.

PT Mulia Intipelangi, owner of Mall Taman Anggrek; PT Mulia
Intanlestari, owner of Hotel Mulia Senayan; and PT Sanggarcipta
Kreasitama, owner of the Wisma Mulia office building, will
collectively guarantee the interest and principal payment of the
notes.

The guarantors are affiliates of the Mulia group and the three
properties are managed by PT Mulia International, a property
management company within the group.

In view of the joint and several guarantee, Fitch has assessed the
credit based on the pro-forma consolidated financials of the
guarantors.

Noble's rating reflects the high financial leverage of the guarantors,
some currency mismatch between their revenues and debt, a degree of
property concentration risk and some refinancing risk at the maturity
of the notes, the rating agency said.

Fitch also notes that Noble's debt servicing is dependent on cash
flows from only three properties, increasing the risk of default in
the event of curtailment of flows from any one of them.

-------------------------------------------------------------

Indonesia's Noble Finance plans bonds -source

HONG KONG, July 13 (Reuters) - Noble Finance B.V., a special purpose
finance company, plans to issue a dollar-denominated bond and has
mandated Citigroup as the sole bookrunner for the bond sale, a market
source said on Thursday.

The source said the bond would be unconditionally and irrevocably
guaranteed by PT Mulia Intipelangi, PT Mulia Intanlestari and PT
Sanggarcipta Kreasitama, which respectively own and operate a shopping
mall, hotel and office building in Jakarta, Indonesia.

The transaction would be launched in the near future, subject to
market conditions, the source said but gave no further details on the
size and maturity of the offer.

Indonesian corporates have raised nearly $900 million worth of dollar
bonds this year.

--------------------------------------------------------------

Indonesia's Astra Daihatsu to import small sedans from Malaysia

JAKARTA, July 13 (Asia Pulse/Antara) - PT Astra Daihatsu Motor (ADM)
said it will import small sedans from Malaysia to add to the variants
of cars to be sold in the country.

The import plan is prompted by a import duty facility provided by the
government for cars from Malaysia, ADM Vice President Sudirman MR said
Wednesday.

So far the facility has not been utilized, Sudirman said, adding
"currently we have no small sedan."

ADM's sales are expected to rise to 150,000 cars in 2007 from an
estimated 114,000 units in 2006, he said after launching a new series
of Daihatsu Xenia.

He said the company plans to increase investment in the country, but
he gave no further details.

---------------------------------------------------------------

Indonesia's Adhi Karya H1 revenue 
1.50 trln rupiah vs 1.11 trln rupiah - report

JAKARTA, July 13 (XFN-ASIA) - State construction firm PT Adhi Karya
had revenue of 1.50 trln rupiah in the first half, compared to 1.11
trln a year before, the Investor Daily reported.

The newspaper quoted Adhi Karya finance director M Choliq as saying
the company expects to increase its full-year revenue to 4 trln rupiah
from 3.03 trln rupiah last year.

He expects Adhi Karya's pre-tax profit this year to be 6-7 pct higher
than last year.

Choliq said the company expects to work on contracts worth 5 trln
rupiah this year, half of them carried over from last year and half of
them new contracts signed this year.

Among the new contracts are overseas construction projects, including
a railway construction deal in India worth 650 bln rupiah and building
construction contracts in Dubai and Saudi Arabia together worth 46 mln
usd, the newspaper said.

-------------------------------------------------------------

Malaysia's Pantai Hldgs forms jv with Indonesia's 
Jasa Sarana on waste mgmt svcs

KUALA LUMPUR, July 13 (XFN-ASIA) - Pantai Holdings Bhd said the Pantai
Group has entered into a joint-venture agreement with PT Jasa Sarana,
an Indonesian company, for the purpose of engaging in the field of
waste management services in Indonesia.

In a statement, the company said a new company with authorized capital
in rupiah equivalent to 400,000 usd will be incorporated in Indonesia.

The Pantai Group will hold a 95 pct stake in the new company, with the
remaining 5 pct held by PT Jasa Sarana, it said.

------------------------------------------------------------

Singapore's Gallant Venture sells Indonesian property for 34 mln sgd

SINGAPORE, July 13 (XFN-ASIA) - Gallant Venture Ltd said its unit PT
Bintan Resort Cakrawala has agreed to sell four parcels of land
earmarked for resort development on the Indonesian island of Bintan
for 34 mln sgd to unidentified buyers.

The divestment will boost Gallant Venture's earnings in the current
financial year as the book value of the land is about 8.8 mln sgd, it
said.

-------------------------------------------------------------

Imported meat must be safe and 'halal': Indonesian minister

JAKARTA, July 13 (Asia Pulse/Antara) - Indonesia will import meat only
from countries that guarantee their product is safe to eat and 'halal'
- permissible to consume based on Islamic law - according to
Agriculture Minister Anton Apriyantono.

Speaking to reporters here early this week in connection with the
government's plan to import meat from Argentina, he said the status of
'free from animal diseases' obtained by a country has not guaranteed
that its meat is safe to consume and halal.

He pointed out that several of the countries that have been declared
free from foot-and-mouth disease (epizootic aphthae) have no system
that can guarantee safe and halal meat supply, so the government has
banned meat imports from those countries.

Indonesia has so far banned meat imports from Argentina, and the
government is currently studying the possibility of lifting the
prohibition of meat imports from that South American country.

The appraisal of the safety and halal status of a product is
determined by would-be importer countries, and supplier countries are
needed to fulfill the requirements forwarded by would-be buyers, he
explained.

The World Health Organization (WHO) has declared Indonesia free from
foot-and-mouth disease, but Japan has banned cattle imports from
Indonesia as Japanese consumers are still not sure about the safety of
Indonesian cattle, he said.

----------------------------------------------------------------

Asian Cocoa: Indonesian, Malaysian Physicals Up On Week

JAKARTA, July 13 (Dow Jones)--Asian physical cocoa prices were higher
in the week to Thursday, following strong support from fund-related
buying.

But prices were lower than yesterday and were expected to fall
further, tracking futures losses overnight in New York, traders said.

Cocoa futures on the New York Board of Trade settled sharply lower
Wednesday on predominantly trade selling driven in part by technicals
and a sharply higher U.S. dollar.

The most-active September contract finished down $28 at $1,702 a
metric ton, following a range between $1,696 and $1,715/ton.
Second-most-active December finished down $25 at $1,735/ton.

On the London International Financial Futures and Options Exchange,
September settled down GBP6 at GBP991/ton, while December settled down
GBP5 at GBP991/ton.

Offers for Malaysia's SMC 1B cocoa beans were quoted at MYR6,145/ton,
up from MYR6,130/ton last week.

Offers for Indonesia's Sulawesi fair-average quality cocoa beans were
quoted at IDR13,150 a kilogram, up from IDR12,300/kg last week.

However, these prices were MYR50 and IDR50 lower than yesterday, a
drop which could signal the end of a sharp price-rise trend in recent
weeks, as futures and physicals prices found strong support from
fund-related buying, said a Singapore trader.

"We may see futures correct down" following yesterday's Nybot falls,
the trader said, adding that physical prices were likely to follow.

Export buyers expect that recent floods in Indonesia's key growing
region of Sulawesi would not hurt mid-crop output later this year,
despite reports from some quarters of heavy damage to cocoa fields,
the trader said. However, damage to infrastructure in the region could
lead to logistical difficulties once the mid-crop harvest begins, he
said.

"We have not really seen any damage to the (mid-)crop, but whether it
can be transported, that's another question."

However, demand for Sulawesi beans could rise later this year,
following lower than expected deliveries of Brazilian cocoa to Nybot,
the trader said.

"We may see some (export buyers) buying more Sulawesi (beans),
depending on the size of the mid-crop," the trader said, without
elaborating.

Sales volumes in Indonesia's local market were also lower following
yesterday's Nybot falls, a trader in Sulawesi said.

"The Nybot is our key destination," the trader said. "So if there are
falls there, we follow their market."

The main crop harvest in Sulawesi traditionally starts in April and
peaks in May, before tapering off in July.

Central, south and southeast provinces of Sulawesi account for 75% of
Indonesia's total cocoa output.

-----------------------------------------

The Wall Street Journal
July 13, 2006

Banks in Japan Gear for a Boom

With Expected Increase in Rates,
Signs Point to Rush on Borrowing,
Bond Trading, Advisory Services

By ANDREW MORSE

TOKYO -- An expected increase in Japan's ultralow interest rates tomorrow 
could send a message to companies that have grown accustomed to an era of 
unusually cheap credit: Act now because happy hour is drawing to a close.

Investment banks in Japan are gearing up for a boom in bond issuance, as 
companies rush to borrow in order to lock in interest rates while they still are 
extremely low. Investment banks also are preparing for a surge in bond trading 
and debt-advisory work, as the country adjusts to rising interest rates after 
a decade of languor in its financial markets and economy.

The Bank of Japan is widely expected to nudge up the rate banks charge each 
other for overnight loans, a benchmark lending rate, to 0.25% from zero, where 
rates have stood for five years.

 
Merrill Lynch & Co., which employs 1,700 people in Japan, has increased its 
regional-debt team staffing 40% since the beginning of the year. J.P. Morgan 
Chase & Co.'s J.P. Morgan Securities, with 1,500 people in Japan, in the past 
year has expanded a team that advises institutional and corporate clients on how 
to cope with higher interest rates. Morgan Stanley also is beefing up its 
debt business.

Meanwhile, UBS Securities Japan Ltd., the Tokyo arm of Switzerland's UBS AG, 
increased the size of its fixed-income team 30% and hired a senior executive 
from Toyota Motor Corp.'s financial unit to head its corporate-bond-issuance 
group. Nikko Citigroup Ltd., a joint venture of Japanese brokerage house Nikko 
Cordial Corp. and Citigroup Inc., is among other firms adding bankers.

Shinji Oyama, co-chief executive of Nikko Citigroup, says Japan's 
conservative corporate managers will see any move toward higher interest rates as a 
conclusive sign that Japan's era of ultralow interest rates is over. "As soon as 
they confirm it, they will issue bonds," he says.

Many have started. Japanese companies raised $62.9 billion through bond sales 
in 2005, according to Thomson Financial, up almost 19% from 2004. In the 
first half of 2006, companies raised $27.4 billion, down from $31 billion in the 
first half of 2005. Still, the number of issuers increased, and the volume of 
issuance is expected to rise in the second half of the year.

The financial industry's maneuvering underscores Japan's changing economic 
fortunes. The Bank of Japan kept interest rates extremely low for years, an 
attempt to use cheap credit to boost an economy that many worried might never 
recover and to fend off deflationary pressures. Now, the economy is posting solid 
growth of about 3% and prices have begun to rise. Many economists expect the 
Bank of Japan to lift the overnight lending rate to 0.5% by year end.

"It's almost like a statement that says the Lost Decade is over," says Mark 
Branson, chief executive of UBS Securities Japan. "Normally, people worry about 
interest rates rising, but as long as they're gradual and moderate, they're 
going to be a sign that we're dealing with a healthy and growing economy."

Interest rates with longer maturities already have risen in anticipation of 
the Bank of Japan's new stance. The yield on Japan's benchmark 10-year bond is 
up almost a full percentage point, to 1.98%, in the past year. This is 
occurring as the nation's manufacturers, worried for years about overcapacity in a 
slumping economy, are becoming worried the economic recovery might lead to 
shortages of production and distribution capacity as demand for their products 
rises.

With the economic outlook improving, big Japanese companies say they plan to 
raise investment 11.6% in the current fiscal year, according to the Bank of 
Japan's tankan survey. To fund such investment, many companies are raising cash.

Utility Tohoku Electric Power Co., online brokerage house E*Trade Financial 
Corp. and auto maker Nissan Motor Co. have sold bonds recently. Nissan's $2 
billion issuance was the second-largest ever in Japan's domestic bond market and 
was striking because it came at a time when General Motors Corp. and Ford 
Motor Co. are funding off credit-rating downgrades.

New bond sales are only one aspect of how the changing interest-rate 
environment is altering the fortunes of financial institutions in Japan. Interest-rate 
increases go hand in hand with price declines in bonds, and offer 
opportunities to banks to sell derivatives and other financial instruments to clients to 
hedge against such movements. It offers opportunities to advise money managers 
on how to reposition portfolios to protect their bond holdings.

All of this drives trading -- and profits -- in Japan's bond markets as a 
whole, notably in the government bonds that many corporations and institutions 
use to hedge their debt portfolios. Companies do this by selling borrowed 
government bonds, a technique called "short selling," which enables them to realize 
some profit if the bonds decline in value.

In May 781 trillion yen ($6.8 trillion) in government bonds changed hands, up 
more than 74% from the same month a year earlier, according to data compiled 
by the Japan Securities Dealers Association.

In short, when prices move, Wall Street profits from helping clients manage 
the associated risks.

"There's finally some volatility in the yen interest-rate market, so you're 
seeing much more interest in trading," says Jason Brand, head of interest rates 
at Merrill Lynch in Tokyo. "We've seen a dramatic increase in volume," he 
says. "Our trading floor has never been louder."

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Joyo Indonesia News Service
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