[Kabar-indonesia] 18 Biz/Econ Reports: Rice Output Safe Despite Drought; Indofood; FY Oil Price

[JoyoNews at aol.com]

18 RI Biz/Econ Reports:

- Indonesia sticking to FY oil price 
  assumption for now despite price spike
- Indonesia govt starts selling 2 trln rupiah
    retail bonds
- Indonesia 2006 rice output on track 
  despite drought
- Indofood proposes merger of its palm oil
    units
- JP: House to debate draft law on electronic 
  transactions 
- Indonesia Indosat's mobile users fall to
    14 mln
- Indonesia govt, Rajawali agree on voting rights
     for SMGR sale
- JP: Hitachi aims for 25% of TV market 
- Bank Negara Indonesia to open 122 new
   units of sharia bank
- Bk Indonesia Gov: Expect USD/IDR Stable
    Around IDR9,200
- Astra Honda projects sports motorbike 
  sales at 5,000 a month
- Indonesia's automotive & chemical sector 
  to enjoy tax incentive
- Indonesia to offer farmers seed
    subsidies
- Indonesian analyst forecasts rise in
    CPO prices
- Indonesian olein up on rupiah,
    Malaysian gains
- Asia Rubber-Tyre-grade steady, seeks
    TOCOM lead
- update: Indonesia, Singapore to resolve 
  investors woes in Batam, Bintan, Karimun
- Malaysia & Indonesia to cooperate in farm
    commodity

Indonesia sticking to FY oil price assumption 
for now despite price spike

JAKARTA, July 17 (XFN-ASIA) - The government is sticking to its
average oil price assumption under the 2006 budget despite the latest
global oil price spike, Coordinating Minister for Economic Affairs
Budiono said.

"(The global price of oil) keeps rising but we are still waiting
(before we revise the assumption) because we still have five months to
go. Let's see if we will need to revise it later. For the time being
we are sticking to 62 usd a barrel," he told reporters at the state
palace.

He added that the matter should be left to Finance Minister Sri
Mulyani Indrawati and parliament to discuss.

When asked for comment, Indrawati did not say if if another revision
was necessary.

"We will discuss it with the parliament," she said.

The government has recently proposed a revised version of the 2006
state budget. The proposals include raising the average oil price
assumption to 62 usd from 57 usd a barrel under the original budget
forecast.

A change in the oil price assumption would have a major impact on the
budgetary allocation for fuel subsidy unless the government hikes fuel
prices.

The proposed revision would add 8.4 trln rupiah to this year's planned
fuel subsidy of 54.3 trln rupiah.

As an OPEC member, Indonesia turned into a net oil importer over the
past year amid falling local production.

In late Asian trade, New York's main contract, light sweet crude for
delivery in August, was at 77.54 usd per barrel, up 51 cents from
77.03 usd in late trades in the US on Friday.

The contract touched an all-time high of 78.40 usd Friday.

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Indonesia govt starts selling 2 trln rupiah retail bonds

JAKARTA, July 17 (XFN-ASIA) - The government has launched its first
retail bond offering worth 2 trln rupiah to cover its budget deficit.

The bonds, called ORI-001, will mature on Aug 9, 2009 and carry a
coupon of 12.05 pct.

The price per unit is set at 1 mln rupiah with a minimum order of five
units or 5 mln rupiah, compared to a minimum order of 1 bln rupiah in
normal bond sales.

"The objectives of issuing ORIs are to finance the budget, diversify
funding sources, improve government debt management and broaden the
investor base," the finance ministry said in a statement.

It said ORIs are a safe investment, offering higher coupon rates
compared to time deposit rates currently offered by banks. Moreover,
ORIs offer capital gains from trading in the secondary market.

Bank Indonesia governor Burhanuddin Abdullah told reporters following
the launch that he hopes ORIs will help reduce the cost of monetary
management. He was referring to the interest costs for Bank Indonesia
certificates (SBI), which have become one of the most attractive
investments for banks.

Separately, Finance Minister Sri Mulyani Indrawati said she is
optimistic that the fixed coupon rate is attractive, given that
interest rates are expected to trend lower.

ORI sales agents comprise three brokerages and eight banks. They are
PT Trimegah Sekuritas, PT Danareksa Sekuritas, PT Valbury Asia
Securities, PT Bank Mandiri, PT Bank Bukopin, PT Bank Permata, PT Bank
Mega, Citibank, PT Bank NISP, PT Bank Danamon Indonesia and PT Bank
Panin.

Meanwhile, another finance ministry official said the government may
issue a second retail bond in the near future depending on the success
of the first retail bond issue.

"After issuing the ORI-001 bonds, the government will launch the
ORI-002. But it depends on how the public will respond to the first
retail bond issue, " said Rahmat Waluyanto, director at the Ministry
of Finance's directorate of treasury bond management.

"The current retail bond sales agents may be reappointed depending on
their performance although the government may also appoint new
agents," he added.

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

Indonesia 2006 rice output on track despite drought

JAKARTA, July 17 (Reuters) - Indonesia's rice output will be on target
although drought has affected thousands of hectares of rice fields, a
senior government official said on Monday.

Between January and July 2006, drought has affected 59,126 hectares of
paddy fields and some 1,616 hectares of them could not be harvested,
data from the Agriculture Minister shows.

Indonesia has a total of 11.9 million hectares of fields planted with paddy.

"The impact will not be much. Our rice production is still safe,"
Sutarto Alimoeso, director general of food crops at the Agriculture
Ministry, told reporters.

"Thus, rice imports will not be needed this year," he added.

The state statistics bureau (BPS) has forecast rice output will rise
by 1.11 percent to 54.75 million tonnes of unmilled rice this year,
from 54.15 million tonnes in 2005.

Early this month, the goverment extended a rice import ban for private
traders which is due to expire on July 31, until December 2006 on an
expected higher rice output this year.

The ban has been in place since early last year to combat rampant
smuggling that had disrupted domestic prices of local rice -- a staple
for the country's 220 million people -- particularly during the
harvest period.

Last November, Jakarta partially lifted the ban on rice imports by
appointing state logistics agency Bulog to import rice for a buffer
stock to curb inflation.

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

Indofood proposes merger of its palm oil units

JAKARTA, July 17 (Reuters) - The world's largest instant noodle maker,
PT Indofood Sukses Makmur Tbk , plans to merge its five units in the
palm oil industry business into a sixth unit to increase efficiency,
one of the subsidiaries involved in the merger said on Monday.

Indofood will merge the five units with PT Salim Ivomas Pratama, which
will become the surviving company in this merger, Salim Ivomas said in
a statement, without giving financial details.

"They (companies) are supporting each other in its business and a
merger will become an alternative to achieve a more efficient,
effective and productive management," Salim Ivomas said.

Indofood, a company with a market capitalisation of $950 million, had
said it plans to eventually offer a stake in its edible oils and fats
business through an initial public offering.

Edible oils and fats contributed around 16 percent of its 18.8
trillion rupiah ($2.05 billion) net sales last year.

Indonesia's Salim family controls Indofood through Hong Kong's First
Pacific Ltd.

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

The Jakarta Post
July 17, 2006

House to debate draft law on electronic transactions 

Andi Haswidi, The Jakarta Post, Jakarta

It has been said that the wheels of the market turn on an invisible track 
called trust. 

Especially so in Indonesia where there are no laws to protect consumers from 
electronic errors made by banks, automatic teller machines or through Internet 
banking. While the wheels run smoothly most of the time -- on trust, between 
banks and customers and between different financial institutions, the lack of 
these laws can cause problems. 

Their absence mean that most people here are unable to buy goods and services 
over the Internet using local credit cards, because the electronic systems 
used here are not judged to be safe enough by most overseas financial 
institutions. 

To overcome this problem, the government recently proposed a Law on 
Information and Electronic Transactions to the House of Representatives. 

The draft that is currently being discussed by a House special committee will 
spell out the standard legal grounds for all electronic transactions and 
allow the country's banks to meet overseas requirements. 

It would make all transactions and all persons or institutions involved in 
electronic transactions subject to the law, and ensure these transactions are 
legally protected. 

Two years in the making, the draft clearly defines terms such as information 
technology, computers and electronic information, signatures, and certificates 
-- all requirements for international certification. 

It would also create a certification body to trust mark all companies 
involved in electronic transactions, and with the power to audit errant firms. 

House committee head Soeparlan told The Jakarta Post last week the committee 
had distributed the draft bill to the business community and wider public and 
had already received numerous responses. 

"We have summoned several important institutions and community groups to hear 
what they have to say about the draft. Their input will help us to formulate 
the final resolution of the law," he said after a hearing with officials from 
the Jakarta Stock Exchange (JSX). 

Soeparlan said the law would help meet the public demand for goods and 
services bought electronically and would be an important way to gain the trust of 
foreign investors and generate more inter-market transactions with local 
bourses. 

JSX chairman Erry Firmansyah said the contents of the draft would largely 
accommodate the demands of capital markets but said there were still some 
flexibility issues that needed to be addressed. 

"Information technology is advancing rapidly. Therefore, I suggest the 
regulation be designed in a way so it can adapt to new technological advancements," 
Erry said. 

He said the capital markets were currently implementing the Straight-Through 
Processing (STP) system, an advanced stock trading system that was more 
efficient, low cost and could accommodate higher transaction volumes. 

Soeparlan said the JSX was the last group the government would consult. 

He said the committee would recess before taking the draft law to a House 
plenary session next month. 

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Indonesia Indosat's mobile users fall to 14 mln

JAKARTA, July 17 (Reuters) - Indonesia's second-largest mobile phone
firm, PT Indosat Tbk , said on Monday its user base fell to 14 million
in June, from 14.4 million at the end of last year.

The fall in numbers sent its market share down to 27 percent, from
above 30 percent at the end of last year, Wahyu Wijayadi, a director
at Indosat, told reporters.

Indonesia's mobile phone users have been growing at a rapid pace in
the past few years, thanks to a low penetration rate of around 20
percent in the country of 220 million people.

But some analysts say a high churn rate and the calling card
phenomenon, or habit of throwing away pre-paid cards when they run out
instead of recharging them, has affected Indosat worse than others in
the sector.

Wijayadi said he hoped Indosat, 42 percent owned by Singapore's ST
Telemedia, would recover its market share by the end of the year.

"Until the end of June, our subscribers were at 14 million. Our market
share is 27 percent," Wijayadi said.

"With 3-4 million new users expected until the year's end, we hope our
market share will become 30 percent."

Indonesia lags behind regional peers such as Malaysia where 80 percent
of the population uses a mobile phone and Thailand's 49 percent
penetration rate.

But industry experts expect the number of users in Indonesia, the
fourth most populous nation, to reach 100 million by 2010.

The company's share price has declined by around 23 percent since the
start of the year, while the overall Jakarta market <.JKSE> has
climbed by around 10.5 percent.

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Indonesia govt, Rajawali agree on voting rights for SMGR sale

JAKARTA, July 17 (Asia Pulse/Antara) - The government and the Rajawali
Group finally reached an agreement Wednesday on voting rights, paving
the way to closing the share sales deal that will make Rajawali a 24.9
per cent shareholder of state cement maker PT Semen Gresik (JSX:SMGR).

Talks earlier were deadlocked over voting rights with the government
as a 51 per cent shareholder wanting to maintain the principle of one
share one vote while Rajawali wants to make decisions based on
deliberation.

Rajawali is expected to sign the final deal with Cemex, which has
agreed to sell its 24.9 per cent stake in Semen Gresik to the Rajawali
Group.

The deal was delayed as the government did not immediately give its
approval, which is required under the contract. The government wanted
the stake to be sold to a consortium of state companies.

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

The Jakarta Post,
July 17, 2006

Hitachi aims for 25% of TV market 

The Jakarta Post, Jakarta

Japanese electronics company Hitachi, one of the world's major producers of 
plasma display panels, is targeting a 25 percent market share in Indonesia's 
growing plasma TV market.

Andy Yusuf, the general manager for new media products at PT Dinamika Ardimas 
-- Hitachi's sole agent in Indonesia -- said Friday that the Indonesian 
plasma TV market was looking good as more and more people were buying plasma TVs 
for their homes. 

"With total sales projected to reach 30,000 units this year, the market is 
quite promising," he said at the launch of the company's large screen 42-inch 
plasma TV model in Jakarta. 

Hitachi would focus on the sales of 40-inch plasma TVs and above, Andy said. 
"While in the LCD (liquid crystal display) TV market, we will give priority to 
the sales of 25- to 37-inch sets." 

He said Hitachi had an edge on other plasma TV producers. "This is the reason 
why we are optimistic about being able to control at least 20 percent of the 
plasma TV market this year." 

Dinamika Ardimas' director Tjitra W. Sanusi said the demand for plasma TVs 
continued to increase as more people were installing them at home and in the 
office. 

"Sales of plasma TVs reached about 15,000 units last year, and this year the 
sales figure is projected to double to 30,000 units," he said. 

Hitachi's new 42-inch 1080 HD plasma TV with 1.024x1,000 HD resolution 
capabilities will enter the market later this month. The company hopes it will be 
able to market its 60-inch plasma TV early next year. 

Hitachi's largest plasma TV is 55 inches but it is not sold here at present. 

According to the Fortune Global 500, Hitachi is the 23rd largest company in 
the world with total sales of US$83.99 billion in the fiscal year that ended in 
March 2005.

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

Bank Negara Indonesia to open 122 new units of sharia bank

JAKARTA, July 17 (Asia Pulse/Antara) - State-run Bank Negara Indonesia
(BNI) said it will put into operation 122 new units of sharia bank
this week.

In April the country's third largest lender commissioned 29 units of
sharia bank operating under Islamic sharia law in the Greater Jakarta
area, Serang, Cilegon and Rangkas Betung.

General Manager of BNI Sharia Suhardi said the 122 new units are to be
commissioned today.

Early this year, BNI already had 40 units of sharia banks, therefore,
the new units including 29 units coming on line in April, BNI will
have 191 units of sharia banks all over the country.

Suhardi said BNI will continue to open new sharia banks until it has
560 units before the end of this year.

Sharia law prohibits receiving and offering interest and investment in
industries related to gambling, weapon and alcohol.

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Bk Indonesia Gov: Expect USD/IDR Stable Around IDR9,200

JAKARTA, July 17 (Dow Jones)--Bank Indonesia reiterated Monday that
the rupiah would be stable against the U.S. dollar, even though the
greenback rose earlier Monday from its trading level in Asia late
Friday.

"The rupiah is now relatively stable around IDR9,200 to a dollar as
jitters over high oil prices are expected to be "temporarily"
affecting the market sentiment," Bank Indonesia Governor Burhanuddin
Abdullah told reporters.

Abdullah said that the rupiah is currently trading at "a safe level".

At 0330 GMT, the dollar was trading at IDR9,275, compared with its
close Friday at IDR9,180. [ 17-07-06 0432GMT ]

A renewed bout of violence in the Middle East caused crude-oil futures
to trade above $77 a barrel in New York Friday for the first time in
floor trading.

Bank Indonesia doesn't customarily set a desired trading level for the
rupiah, but the market believes that it would be happy with an
IDR9,000-IDR9,500 range for now.

Vice president Jusuf Kalla had said earlier that the government
considered IDR9,200-IDR9,500 the "normal level" for the dollar's value
against the rupiah as that level is "good" for Indonesian exports.

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Astra Honda projects sports motorbike sales at 5,000 a month

JAKARTA, July 17 (Asia Pulse/Antara) - PT Astra Honda Motor (AHM) has
projected its 200-cc Honda Tiger sports motorcycle sales at 5,000
units per month.

"The big motorbike market share in this segment is not too large, only
about four per cent of the total number of motorcycles in the
country," AHM marketing director Johannes Hermawan said at the
launching of the Honda Tiger Revolution Cruiser at the Jakarta Fair
grounds on Friday night.

He said that the market segment of 200-cc motorcycles like the Honda
Tiger tended to be stable, and even if there is a decline, it would
not be too significant.

"The market segment of step-through type of motorcycles tended to be
stable and remains unaffected under any circumstance," he said.

AHMA`s sales up to the first semester of 2006 reached 913,547 units of
the total national motorcycle sales of 1,810,979 units, and AHM
controlled some 50.4 per cent.

In the meantime, president of AHM Miki Yamamoto said the number of
Honda Tiger users in Indonesia has now reached 200,000, and there are
17 Tiger clubs with 17,000 members.

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Indonesia's automotive & chemical sector to enjoy tax incentive

JAKARTA, July 17 (Asia Pulse/Antara) - Indonesia's automotive and
chemical industry has been included in a list of industrial
enterprises entitled to tax incentives as laid down in Government
Regulation No. 148 on income tax facility for investment in certain
lines of business and certain regions.

Industry Minister Fahmi Idris said following a limited coordination
meeting at the office of the chief economic minister in Jakarta on
Friday that part of the automotive industry's production was also on
the list.

He said that these industries are covered by the government-set
criteria like pioneering industries.

Minister of Trade Mari Elka Pangestu meanwhile said that the
government was preparing a regulation on the implementation of
Government Regulation No. 148, which has been somewhat delayed as a
list of industries enjoying incentives had yet to be drawn up.

She said the regulation on the implementation of Government Regulation
No. 148 will take the form of a Government Regulation and Decree of
the Minister of Finance, and its articles would not be changed.

The deliberation of the Government Regulation No. 148 of 2000 is
scheduled for completion by the end of July 2006 and would go into
effect in August 2006.

Under Presidential Instruction No. 3 of 2006 on the Investment Climate
Improvement Policy Package, the deliberations should have been
completed on June 30, 2006.

In the meantime, expert staff to the Economic Affairs Coordinating
Minister M. Iksan said recently that the criteria on industries which
will enjoy an incentive are labour-intensive pioneer industries that
are developing certain regions.

Under the Government Regulation No. 148, tax on the net income of
industries will be reduced by 30 pct of their investment, accelerated
depreciation and amortization, longer compensation for losses but no
longer than 10 years, and income tax on dividends will be reduced from
20 per cent to 10 per cent.

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Indonesia to offer farmers seed subsidies

JAKARTA, July 17 (Asia Pulse/Antara) - The government has decided to
provide subsidies for seeds of food crops - rice, corn and soybeans
starting next year.

Agriculture Minister Apriyantono said the government has set aside
Rp1.7 trillion (US$185.8 million) in seed subsidies for next year. The
subsidies will be offered directly to farmers in the form of a voucher
with a price discount.

Apriyantono said with farmers now being directly subsidised, state
companies producing food crop seeds like PT Pertani and PT Sanghyang
Seri will no longer be given production subsidies.

All producers of rice , corn and soybean seeds, including state
companies have to compete, especially in quality, he said .

The subsidy is 75 per cent of the market selling price for rice and
soybean and 25 per cent to 50 per cent of the market price of corn.

The policy is aimed at encouraging farmers to use good quality seeds
to improve their productivity, the minister added.

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Indonesian analyst forecasts rise in CPO prices

JAKARTA, July 17 (Asia Pulse/Antara) - The prices of crude palm oil
(CPO) are predicted to rise to US$439 a ton in a month from around
US$408 last week, analysts said.

The CPO price hike will follow the increase in the crude oil prices
that are expected to continue to climb to the level of US$80 a barrel,
chief analyst from PT Platon Niaga Berjangka Asep Risman said.

Mounting tension in Middle East with the Israeli attacks on Lebanon
triggered the new surge in the oil prices.

CPO is the closest substitute for oil fuel, therefore, the price of
CPO is determined by fundamental factors, Asep told the newspaper
Bisnis Indonesia.

Indonesia is the second largest producer of CPO in the world after Malaysia.

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Indonesian olein up on rupiah, Malaysian gains

JAKARTA, July 17 (Reuters) - Indonesia's cooking oil prices rallied on
Monday, boosted by the rupiah's extended losses against the U.S dollar
and gains in Malaysia crude palm oil futures, traders said.

But trading for crude palm oil was sluggish as players remained on the
sidelines due to weak demand.

RBD palm olein in Jakarta traded at 4,460 rupiah ($0.480) a kg, up
from 4,380 rupiah a kg on Friday.

"Demand is relatively thin today, but gains in Malaysia and the
weakening of the rupiah have boosted prices," said a trader in
Jakarta.

Malaysian crude palm oil futures closed sharply higher on Monday,
boosted by strong exports and higher prices of crude oil with the
benchmark third-month October <KPOV6> contract on the Bursa Malaysia
Derivatives closing up 24 ringgit at 1,541 ringgit ($418) a tonne.

Late on Monday, the rupiah was quoted at 9,290 rupiah per dollar
compared to 9,210 rupiah on Friday. A weaker rupiah makes the
commodity -- traded in dollars -- more expensive in local currency
terms.

Gains in cooking oil prices were not followed by crude palm oil with
the absence of local auctions both in Jakarta's state marketing centre
and Medan, the capital of North Sumatra province and a key port for
palm oil.

"There were no offers today as demand was usually weak on Monday.
Sellers are likely to wait for tomorrow and to see the price
movement," said a trader in Medan.

On the export front, sellers offered July shipment at $407.5 a tonne,
up from $405 on Friday, free on board Belawan. Buyers bid at $397.5 a
tonne, but no deals were reported.

Sellers offered August shipment at $407.5 a tonne free on board
Belawan, unchanged from Friday. Bids were seen at $404 a tonne without
any trades were reported.

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Asia Rubber-Tyre-grade steady, seeks TOCOM lead

SINGAPORE, July 17 (Reuters) - Asia's rubber prices were mostly steady
on Monday, aided by tight supplies in parts of Indonesia and rains in
Thailand but overall trading was slow with the Tokyo market closed for
a holiday.

The market awaited Japanese rubber futures to reopen on Tuesday. The
key most distant December TOCOM rubber contract <0#JRU:> on the Tokyo
Commodity Exchange ended 4.4 yen a kg lower at 283.9 yen ($2.44) on
Friday.

Dealers noted deals for Indonesia's tyre-grade SIR20 at 104 U.S. cents
per pound ($2.29 a kg) late on Friday but there were no details on the
buyers.

"It's a kind of slow today and I do feel sleepy, but supply is getting
less and less," said a dealer in Padang, the provincial capital of
West Sumatra.

"Buyers are keen to buy rubber at 104.25 cents but many sellers just
don't bother," he said.

Dealers said supply was getting tighter in Indonesia, the world's
second-largest producer after Thailand, as the wintering season
continued in the southern part of Sumatra island.

During the "wintering" dry season, rubber trees shed their leaves and
latex output declines.

In neighbouring Thailand, benchmark RSS3 rubber sheet for August
shipment was steady at between $2.50 and $2.55 a kg, free on board.
Offers for tyre-grade Standard Thai Rubber, or STR20 block, for August
shipment were little changed at $2.45 a kg.

Thai benchmark unsmoked rubber sheet grade 3, or USS3, the raw
material for export-grade rubber, hardly moved at 88 baht a kg
($2.31).

"Some areas are still affected by the rains but supply has slightly
improved. It's quiet today because people want to know how Tokyo is
going to behave tomorrow," said a dealer in Thailand's southern city
of Hat Yai.

"Technically, TOCOM doesn't look good. But we don't know whether it's
going to be influenced by other markets because oil and gold are going
up. I guess, 280 yen still provides good support," he said.

Malaysian tyre-grade SMR20 steady at $2.40 and $2.45 a kg for August shipment.

On the Shanghai futures exchange, the most active September rubber
contract <0#SNR:> closed up 155 yuan at 24,755 yuan a ($3,096) a
tonne.

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Indonesia, Singapore to resolve investors woes in Batam, Bintan, Karimun

JAKARTA, July 17 (Asia Pulse/Antara) - Quick action needs to be taken
to resolve the immediate issues and problems faced by investors in the
Indonesian islands of Batam, Bintan and Karimun, a steering committee
said Friday.

Indonesia and Singapore signed a Framework Agreement on Economic
Cooperation in the islands, which lie between the two countries, on
June 25, 2006.

The Joint Steering Committee (JSC) on economic cooperation in Batam,
Bintan and Karimun, which met for the first time Friday, said it had
agreed on actions to improve the investment climate in the three
islands in the short term.

"This will essentially involve resolving existing issues such as
reviewing the tax regulations and services to be more conducive for
investors; set up business-friendly customs procedures and visa
processing; and, establishing integrated services for investor in one
location as well as an Investor Feedback System," the JSC said in a
statement.

The JSC said a Joint Working Group (JWG), chaired by Indonesia's Trade
Minister Dr Mari Pangestu and Singapore's Chairman-designate of the
Economic Development Board, Mr Lim Siong Guan, will implement the plan
starting in September this year.

The JWG will also develop a roadmap for action in the islands that
will include the areas of investment, finance and banking, taxation,
customs and excise, immigration, manpower and the capability
development that would need to be undertaken within the next 12
months.

This roadmap for Batam, Bintan and Karimun will include plans to:
promote the islands to potential investors, encourage private sector
investment in infrastructure projects, and train workers to meet
industrial needs.

Under the agreement, Singapore will also provide technical assistance
for the implementation of Special Economic Zones on the islands, such
as in implementing systems for improving integrated investment
services and training of human resources.

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Malaysia & Indonesia to cooperate in farm commodity

JAKARTA, July 17 (Asia Pulse/Antara) - Indonesia and Malaysia are
discussing cooperating to develop and expand the farm commodities
market during a 5-day meeting to end on Tuesday in Medan, North
Sumatra.

The delegations from the two countries are expected to reach an
agreement to expand their sales of farm commodities, especially palm
oil and cacao, the Associaiton of Palm Oil Companies (Gapki) said.

The two countries plan to work together in countering negative
campaigns against palm oil in the international market, especially in
countries producing other eible oils like soybean oil.

Malaysia and Indonesia are the world's largest and second largest
producers of palm oil, respectively.

The two countries also want to cooperate in developing and producing
bio-diesel and bio fuel from palm oil, Gapki chairman Derom Bangun
said.

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Joyo Indonesia News Service
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