[Kabar-indonesia] 22 RI Biz/Econ Reports: Manufacturing in 'Dire Condition; ' Sugar [+JSX/Rupiah]

[JoyoNews at aol.com]

22 Reports:

- Indonesia's manufacturing industries 
  in dire condition: Survey
- Indonesia to import 1 mln T raw,
  white sugar
- Indonesia Shares Close Higher 
  As Telkom, Indosat Gain
- Indonesia Rupiah Ends Down 
  On Pft Taking Ahead Of US Data
- Semen Gresik cancels EGM on 
  govt request due to Rajawali entry
- Interview - Glove makers see good 
  growth, latex price a concern
- Interview - China hungry for rubber, 
  wants to raise output
- Jakarta asks central bank to allow loans 
  for land clearance
- Indonesia's BTPN selecting underwriter
  for IPO
- Indonesian govt to set up micro-financial
  institutions nationwide
- All villages in Indonesia to have phone
  service by 2010
- Indonesia on course to meet 5.9 pct
  growth target: Minister
- JP: IDB to mobilize Arab funds for RI 
- Bank Muamalat Indonesia eyeing
  acquisition
- Bekaert to expand production capacity
  in Indonesia
- Indonesia's Noble Fin to market bond
  next wk-source
- Mandom Indonesia expects to achieve net
  profit target
- Indonesian tire sales rise as domestic auto
  market recovers
- Central Sulawesi earns US$90mln from
  cacao export in H1
- Stockwatch - Indonesia's SMART sharply
  higher on strong H1 results
- Indonesia Astra Agro fails to sell palm oil
  at auction
- Indonesia palm oil rally on Malaysia,
  tight supply

Indonesia's manufacturing industries in dire condition: Survey

JAKARTA, July 28 (Asia Pulse/Antara) - A number of Indonesian
manufacturing industries are in alarming condition with sales
shrinking as they have been hard hit by high interest rates and
illegal goods flooding the domestic market, a report said.

Companies operating in the labor intensive manufacturing industry such
as automotive and footwear and electronic factories are facing
difficulties in disposing of their products, the newspaper Kompas
reported today.

Automotive and footwear industries recorded a 40 per cent-50 per cent
decline in sales over the past year, the report said quoting a survey.

Companies operating in the three industries were among the major
investors in the past year, the survey noted.

Chairman of the business association (Apindo) Sofyan Wanandi said
under present conditions, those companies could not be expected to
expand their business, at least for this year.

Sofyan said weak purchasing power and high interest rate are the main
causes of the slump.

The industries have to wait for an increase in the purchasing power of
consumers before drawing up plans for business expansion, he said.

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

Indonesia to import 1 mln T raw, white sugar

JAKARTA, July 28 (Reuters) - Indonesia has issued respective licences
to import 604,000 tonnes and 424,178 tonnes of raw and white sugar for
industrial needs this year, a senior government official said on
Friday.

"The licences are valid for six months. But some have expired and some
are still valid, depending on when they (companies) got the permits,"
said Tubogu Albert Yusuf, import director at the Trade Ministry.

For raw sugar, the ministry has allowed domestic industrial sugar
producers to import 545,000 tonnes of raw sugar. The food seasoning
industry can import up to 59,000 tonnes of raw sugar this year.

Indonesia, Southeast Asia's largest sugar buyer, imports all its raw
sugar needs from Brazil, Thailand and Australia.

Meanwhile, permits to import 424,178 tonnes of white sugar have been
awarded to 74 food and beverages producers, the official said.

Indonesian household and industrial consumption totalled 3.35 million
tonnes in 2005, while domestic sugar output stood at 2.24 million
tonnes, based on data from the Indonesian Sugar Council.

Indonesia is projected to produce 2.48 million tonnes of sugar this year.

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

Indonesia Shares Close Higher As Telkom, Indosat Gain

JAKARTA, July 28 (Dow Jones)--Indonesia shares closed higher Friday
led by gains in telecommunication blue chips amid expectations of
solid first half earnings, dealers said.

Overall sentiment was cautious as fresh weakness in the rupiah against
the U.S. dollar spurred profit taking in many small-capitalized
shares, they added.

"Gains in Telkom and Indosat kept the main index in positive
territory," said a trader with a local securities firm.

The Jakarta Stock Exchange Composite index ended up 6.818 points, or
0.5%, at 1337.410.

Decliners, however, led gainers 60 to 42, with 54 stocks unchanged.

Volume was 1.1 billion shares valued at IDR1.3 trillion, compared with
1.55 billion shares valued at IDR4.9 trillion Thursday.

At 0912 GMT, the dollar was trading higher at IDR9,094, compared with
Thursday's close at IDR9,070.

Bellwether Telekomunikasi Indonesia rose 1.4% to IDR7,400 on
expectations that its first half net profit will increase more than
20% on year because of a higher contribution from its cellular
division, dealers said.

Telkom's rival Indosat ended up 2.4% at IDR4,325 also on expectations
of solid first half earnings. Both Telkom and Indosat are expected to
announce their first half earnings Monday.

Dealers said investors continued to buy shares in Bank Mandiri, the
nation's largest bank by assets, on expectations that the bank will
perform better this year. Bank Mandiri gained 2.4% to IDR1,740 after
reporting its first half net profit gained 32% on year.

Profit taking hit shares in palm oil producer Astra Agro, which fell
2.9% to IDR8,400, and rival London Sumatra, which lost 6.6% to
IDR4,600, after recent sharp gains on the government's plan to develop
the bio-fuel industry.

Dealers expect shares to trade higher Monday on further buying in
telecommunication and bank blue chips.

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Indonesia Rupiah Ends Down On Pft Taking Ahead Of US Data

JAKARTA, July 28 (Dow Jones)--The Indonesian rupiah ended slightly
lower Friday as persistent demand for the dollar from local importers
sparked profit-taking against the local unit after it rose in the past
two sessions, dealers said.

'Foreign banks covered back their dollar-short positions as importers
continued to buy dollars,' a dealer with a Singaporean bank in Jakarta
said. 'I think they wanted to lock in profits ahead of the weekend and
the release of U.S. (second quarter) GDP data later today.'

The dollar closed at IDR9,093, versus its close Thursday at IDR9,070.

The greenback reached an intraday high of IDR9,110 earlier in the day,
but it quickly lost steam as foreign funds continued to buy Indonesian
stocks, dealers said.

The Jakarta Stock Exchange's main index ended up 0.5% at 1337.41 points.

The dollar may give up its gains Monday as it still looks bearish
globally, dealers said.

They expect the U.S. currency to trade between IDR9,060 and IDR9,130 Monday.

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

Indonesia's Semen Gresik cancels EGM on govt request due to Rajawali entry

JAKARTA, July 28 (XFN-ASIA) - Indonesia's largest cement maker PT
Semen Gresik said the government, as its controlling shareholder, has
requested that the company cancel its extraordinary shareholders
meeting scheduled for today in view of the entry of the Rajawali Group
as a new shareholder.

The EGM was scheduled to approve the planned construction of a new
cement plant and its financing options.

Company president Dwi Sutjipto told reporters the meeting had just
opened when the government requested its cancellation in view of
yesterday's closing of the Cemex SA sale of its 24.9 pct Gresik stake
to the Rajawali Group.

'With the cancellation, we will have flexibility to change the agenda,
such as adding a possible management reshuffle into the agenda,'
Sutjipto said.

Semen Gresik proposes to build a cement plant with capacity of 2.5 mln
tons a year at a cost of 2.802 trln rupiah.

The company has said internal cash will cover 35 pct of the cost and a
loan from a bank or other financial institution will cover the rest.
Today's EGM was to endorse the construction plan, and to allow
management to seek necessary funding and to pledge their fixed assets
as collateral.

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

Interview - Glove makers see good growth, latex price a concern

By Lewa Pardomuan

KUTA, Indonesia, July 28 (Reuters) - Global demand for rubber gloves
is expected to grow by up to 20 percent annually over the next few
years as health concerns mount and the world becomes more obsessed
with hygiene, an industry official said on Friday.

The rise in demand is expected to come despite world rubber prices
rising to multi-year highs, said Henry Tong, chairman of the
Association of Southeast Asian Nations Rubber Glove Manufacturers.

"Our concern is that the price fluctuation is not driven by actual
supply and demand but more by speculation from the funds," Tong told
Reuters by email from Surabaya, the provincial capital of East Java.

"We all know that this kind of market can rise sharply but then
crash," he added.

The association represents some 125 glove manufacturers in Malaysia,
Thailand and Indonesia and accounts for more than 80 percent of global
glove sales.

World natural rubber prices have risen in recent years after Thailand,
Indonesia and Malaysia decided to cut output to ease an oversupply and
China emerged as the world's largest buyer.

Rubber futures on the Tokyo Commodity Exchange <0#JRU:> hit its
highest level since September 1980 in June before a technical
correction kicked in. The price of tyre-grade rubber has risen to more
than $2 a kg from a 30-year low below 50 U.S. cents in 2001.

Dealers said Thailand could export less gloves this year as the price
of latex had risen around 50 percent in the past year to around 60
baht a kg. And Malaysia was forced to raise prices to absorb raw
material costs.

Thailand, the world's largest rubber producer, produces close to three
million tonnes of the commodity a year. Some of it is made into latex
and the rest into sheets for sale to tyre makers.

Tong said higher prices of raw material might boost competition among
manufacturers but global consumption was unlikely to be affected
despite an increase in glove prices.

"In general, the market can accommodate the increase because demand
for disposable latex gloves remain strong worldwide. Global disposable
gloves demand is expected to grow about 15 to 20 percent annually," he
said.

"We estimate demand to reach 110 to 130 billion pieces in 2006, and
will continue to grow in this 5-to-20-year period," he said.

The price of gloves has risen by up to 40 percent in the past year to
between $21 and $29 per 1,000 pieces.

The United States is the major market, accounting for 30 percent of
global consumption of gloves.

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

Interview - China hungry for rubber, wants to raise output

By Lewa Pardomuan

KUTA, Indonesia, July 28 (Reuters) - China, the world's top rubber
consumer, wants to raise domestic output to reduce its dependence on
imports as demand is expected to increase more than 30 percent to
around 5 million tonnes by 2010, an industry official said.

"We need more and more rubber but raw material is a big problem," Ju
Hong Zhen, president of the China Rubber Industry Association, told
Reuters on Friday ahead of an industry dinner on the Indonesian resort
island of Bali.

"We'd like to depend on ourselves," Ju said through an interpreter.

But Ju also said China would look for deals with other countries in
Asia such as Indonesia, Thailand and Myanmar to boost supplies.

"To improve (the supply of) raw material, we'd like to go abroad and
build natural rubber factories and plant rubber trees," he said
without elaborating.

A Chinese industry official said on Thursday that China had reached a
deal with the Malaysian government to develop rubber plantations
there, while state media reported that a Chinese company had signed a
contract with a Cambodian firm earlier this year to grow rubber in the
Southeast Asian country.

China produces some 500,000 tonnes of rubber a year and aims to
increase output to 750,000 tonnes under a five-year government plan
that began this year as rising rubber prices have become a burden for
tyre manufacturers, Ju said.

Chinese consumption of natural and synthetic rubber was estimated to
reach 3.8 million tonnes in 2006 from 3.6 million in 2005, he added.

Customs data shows China imported around 1.4 million tonnes of natural
rubber from Thailand, Malaysia and Indonesia last year, up 9.5 percent
from 2004.

China has seen an increase in imports in recent years as booming car
sales and strong economic growth underpin demand for rubber, which is
used to make tyres, gloves and condoms.

Demand from China as well as efforts by producing countries to reduce
output have pushed rubber prices up to more than $2 a kg from below 50
U.S. cents in late 2001, the lowest in 30 years.

China cancelled natural rubber import quotas in 2004 to fulfil a
commitment to the World Trade Organisation.

The London-based International Rubber Study Group has said global
natural rubber and synthetic rubber consumption is expected to rise
3.86 percent to 21.53 million tonnes in 2006 from 20.73 million in
2005 because of strong economic growth in Asia.

Ju said China's tyre production was expected to reach 320 million
units by 2010 from an estimated 250 million units in 2005.

He said the government should encourage farmers to plant more rubber
and improve planting technology to meet demand.

Some dealers said low productivity remained a problem in China, while
last year's typhoon in the country's main growing island of Hainan
destroyed vast rubber plantations. Hainan accounts for about half of
China's rubber output.

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

Jakarta asks central bank to allow loans for land clearance

JAKARTA, July 28 (Asia Pulse/Antara) - The government has called on
Bank Indonesia (BI), the central bank, to allow banks to provide
credits for investors who want to clear land for toll road
development, a cabinet minister said.

"Investors can work only if they get credits from banks but banks
impose a condition that their credits may not be used for clearing
land. This poses difficulties to investors," Public Works Minister
Djoko Kirmanto told reporters at the Vice Presidential office after
attending a meeting which discussed development of toll roads.

The meeting was attended by Vice President Jusuf Kalla, Coordinating
Minister for Economy Budiono, State Minister for State Enterprises
Sugiharto, President Director of Road Construction Company PT Jasa
Marga Frans S Sunito and Chairman of the Indonesian Toll Road
Association Fachtur Rochman.

Djoko said the government was trying its best to enable the use of
bank credits for the financing of land clearance.

Bank Indonesia had issued a regulation -- effective since 1997 --
which banned the use of bank credits for land clearance.

"At that time, the regulation was made to prevent the use of credits
for the clearance of land for real estate. But this is different
because the land to be cleared is to be returned to the state," he
said.

He said the government hoped BI would make exceptions to the rule for
toll road development but "if BI says no, it will remain no (the
credit cannot be used for land clearance)."

Djoko said that besides the problem of credits for land clearance, the
other problem discussed was the mechanism of land clearance.

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Indonesia's BTPN selecting underwriter for IPO

JAKARTA, July 28 Asia Pulse - The management of civil servants saving
bank, Bank Tabungan Pegawai Negeri (BTPN), said it is selecting one of
three securities companies to serve as underwriter in its plan to
launch an initial public offering (IPO).

The IPO plan is to be launched by the end of this year delayed from
the previous schedule in May, its President Paulus Wiranata said.

Paulus said the bank will offer up to 30 per cent of its shares in the
IPO but the final decision will depend on the market condition.

Part of the fund from the IPO will be used to finance plan to expand
its networks from 371 units at present including branch offices,
auxiliary offices and cash offices.

The rest will be used to buy information technology and train employees .

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Indonesian govt to set up micro-financial institutions nationwide

SOLO, July 28 (Asia Pulse/Antara) -- The government plans to set up
6,143 micro-financial institutions across the country to help people
who need small amounts of capital, Cooperatives and Small-and
Medium-Businesses Minister Suryadharma Ali said here on Wednesday.

He said the micro-financial institutions would be developed at
district and subdistict levels.

"Each subdistrict will later be given capital fund of around Rp100
million (US$10,982) and an insitution will be set up in the form of a
cooperative to manage it through a loan and saving service," he said.

The minister said banks were usually reluctant to extend small loans.

Extending Rp1 billion to one debtor was easier than extending it to
1,000 people, he said.

"That is why, few banks are willing to issue retail or micro-credits.
And therefore thess micro-financial institutions will be very
important," he said.

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All villages in Indonesia to have phone service by 2010

WAI KANAN, LAMPUNG, July 28 Asia Pulse - Communications Minister
Sofyan Dalil said the government was determined to provide all
villages in Indonesia with telephone facilities by 2010.

"This is possible because investment in a telephone installation has
become relatively cheap thanks to the availability of Code Division
Multiple Access (CDMA) technology," the minister said when
inaugurating the operation of rural telecommunication networks and
school computer facilities in Way Kanan, Lampung recently.

He said the development of telecommunication networks was being
financed with funds taken from 0.75 per cent of the profits of
telecommunication companies.

Saefullah said the rural telecommunication project was a program
carried out jointly by the government and private telcos.

"This program constitutes a joint efforts by all stakeholders, namely
the central government, regional government and the private sector
which share the same program in Way Kanan," he added.

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

Indonesia on course to meet 5.9 pct growth target: Minister

LARANTUKA, Indonesia, July 28 (Asia Pulse/Antara) - Development
Planning Minister Paskah Suzetta said here on Thursday he was still
optimistic that the national economic growth target of 5.9 per cent
will be met by the end of this year.

He said the government initially expected economic growth to reach 6.2
per cent but the figure was later revised to 5.9 per cent.

He said "the revision was made because the government still bore the
burden of the impact of fuel price hike in 2005 and also because of
statements from international agencies and observers suggesting the
5.9 per cent growth."

Paskah said exports had risen significantly from January to May
reaching almost 13.4 per cent compared with last year , especially
from the mining sector.

He said the government would expedite the implementation of the 2007
fiscal year by asking district heads to speed up the absorption of the
2007 budget and focus on sectors ready for budget use.

He said the government had already made policy packages including a
package of investment policies containing new regulations and
incentives for investors, a package of new infrastructural policies to
absorb more imployement to reduce poverty and a package of financial
policies for national as well as regional administrations.

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

The Jakarta Post
July 28, 2006

IDB to mobilize Arab funds for RI 

The Islamic Development Bank (IDB) pledged Thursday to help mobilize funds in 
the oil-rich Middle East for investing in major infrastructure projects here.

After a meeting with Vice President Jusuf Kalla, IDB operations vice 
president Amadou Boubacar Crissie told reporters Thursday that the bank was interested 
in funding projects in the energy, petrochemicals, turnpike, airport and 
housing sectors. 

He stressed that Indonesia should take advantage of the region's financial 
resources, which were currently overflowing as a result of massive windfall 
revenues from soaring oil prices. 

Crissie did not mention any figures, however. 

The IDB delegation met Kalla as part of the follow-up to his recent meeting 
with President Susilo Bambang Yudhoyono in Amman, Jordan, which was aimed at 
boosting financial cooperation. 

Indonesia is currently in dire need of foreign investment if growth is to be 
accelerated and unemployment brought under control. 

The country has traditionally sought loans from the Western nations, Japan 
and international financial institutions like the World Bank to help finance its 
development projects. 

However, Crissie warned that IDB loans to Indonesia would have to be based on 
the sharia financial system. 

This was founded upon Islamic law, which prohibits the receipt or the 
charging 
of interest. Instead, it uses profit-sharing mechanisms to encourage 
investment. 
-- JP 

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

Bank Muamalat Indonesia eyeing acquisition

JAKARTA, July 28 (Asia Pulse/Antara) - Bank Muamalat Indonesia, the
nation's first Islamic bank, said it plans to acquire a conventional
bank that it convert into a sharia bank.

The plan has been approved by the bank's majority shareholder the
Islamic Development Bank (IDB), its President Riawan Amin said.

Amin said the bank to be acquired will be one having assets comparable
to Muamalat's assets of around Rp7.6 trillion (US$844 million) or less

He said the bank will have support from its shareholders for the acquisition.

Bank Muamalat is 28.01 per cent owned by IDB, 21.28 per cent by
Boubyan Bank of Kuwait, 15.32 per cent by Atwill Holding Ltd and 11.56
per cent by the investing public.

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

Bekaert to expand production capacity in Indonesia

BRUSSELS, July 28 (Reuters) - Belgian steel cord manufacturer Bekaert
said on Friday it would expand its production capacity in Indonesia
for advanced wire products.

"The company wants to anticipate the rapidly growing demand from the
paper industry in South-East Asia which is an important buyer of
Bekaert pulp baling wires used for packaging the pulp in the initial
stage of the paper production process," Beckaert said in a statement.

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

Indonesia's Noble Fin to market bond next wk-source

HONG KONG, July 28 (Reuters) - Noble Finance B.V., a special purpose
finance company, will begin marketing next week a five-year dollar
bond issue, expected to be $240 million in size, a market source said
on Friday.

The promotional tour will kick off in Hong Kong on Monday, before
moving to Singapore on Tuesday, London on Wednesday and the United
States afterwards, 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 proposed bond offer is rated single-B by Standard & Poor's, which
said the proceeds would be used by the three guarantors to refinance
existing debt.

Citigroup is the sole bookrunner.

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

Mandom Indonesia expects to achieve net profit target

JAKARTA, July 28 (Asia Pulse/Antara) - Publicly listed cosmetic
company PT Mandom Indonesia (JSX:TCID) said it is optimistic that it
will achieve its net profit target of Rp100 billion (US$11.1 million)
this year, up from Rp92.9 billion in 2005 after robust performance in
the first half of the year.

PT Mandom Indonesia reported a 17.1 per cent increase in net profit
year-on-year to Rp61.5 billion (US$6.8 million) in the first half of
this year with sales amounting to Rp500.9 billion.

Company Director Makmun Arsyad said the company is set to chalk up an
income of Rp1 trillion this year, up 10.5 per cent from last year.

Arsyad said his company has not made adjustment to the increase in
production capacity.

He said several other cosmetic companies have even reduced their
selling prices due to fierce market competition.

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Indonesian tire sales rise as domestic auto market recovers

JAKARTA, July 28 (Asia Pulse/Antara) -- The recovery of the domestic
car market in the past three months has pushed sales of tires sharply
higher in June, the Association of Tire Producers (APBI) said.

Sales of tires to car makers to be used as original equipment jumped
15.1 per cent to 143,951 units in June from the previous month, it
said.

However, the increase in the sales to car makers did not reflect the
performance of the tire industry as most of the country's tire
production is exported and sold in the retail market to be used for
replacement by car owners, the association said.

In June total sales of the country's tires rose only 0.8 per cent to
3,446,830 units from 3,418,516 units in May, APBI said.

Of total sales in June, 2,681,066 units were shipped abroad.

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Central Sulawesi earns US$90mln from cacao export in H1

PALU, C SULAWESI, July 28 (Asia Pulse/Antara) -- Central Sulawesi
earned over US$90 million from exporting 80,000 tons of cacao in the
January-June period this year, an official said.

The earnings from cocao exports in the first half of this year made up
more than half of the total non-oil and gas exports from the province,
Central Sulawesi Industry, Trade and Cooperatives Office's Trade
Section head Taufik Amin said here Friday.

The income was an increase of 20 per cent compared to that of the same
period last year.

Amin expressed optimism that Central Sulawesi's exports could surpass
the target set for this year.

He also said cacao has turned into a commodity that has successfully
earned the largest foreign exchange of Central Sulawesi's non-oil and
gas export for the past three years.

Cacao exports from Central Sulawesi earned $157 million in 2003, $172
million in 2004 and $147 million in 2005.

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Stockwatch - Indonesia's SMART sharply higher on strong H1 results

JAKARTA (XFN-ASIA) - Shares of crude palm oil (CPO) plantation firm PT
SMART, a unit of the Sinar Mas group, were sharply higher in
midmorning trade after the company reported strong first-half results,
dealers said.

The company booked a 2,482-pct increase in first half net profit to
371. 42 billion rupiah from 14.38 bln a year earlier, on sales of 2.36
trln compared to 2.08 trln a year earlier.

At 11.17 am, SMART was up 350 rupiah or 12.07 pct at 3,250.

The composite index was up 3.082 points or 0.23 pct at 1,333.674.

Teuku Hendry, an analyst with Mega Capital, said the rise was sparked
mainly by SMART's positive first-half results and market expectation
that the company may develop its own oil palm plantation.

He said the company currently only focuses on producing cooking oil from CPO.

"There is market talk that the company plans to develop its own oil
palm plantation. This may have boosted interest in the stock," he
said.

He said SMART's first-half results were quite solid, with higher sales
and a sharp rise in the net profit that was mainly boosted by other
income, particularly foreign exchange gains.

The company said it booked 65.27 bln rupiah in foreign exchange
earnings in the first half to June compared to forex losses of 99.72
bln rupiah in the same period last year.

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Indonesia Astra Agro fails to sell palm oil at auction

JAKARTA, July 28 (Reuters) - Indonesia's biggest listed plantation
firm, PT Astra Agro Lestari's , rejected bids to sell 2,500 tonnes of
crude palm oil offered in a tender on Friday due to low bids.

The company offered 500 tonnes of crude palm oil at 4,125 rupiah a kg,
ex-factory Riau and 2,000 tonnes at 4,175 rupiah a kg, free on board
Kumai.

Astra Agro is a subsidiary of the country's largest automotive
distributor, PT Astra International Tbk .

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Indonesia palm oil rally on Malaysia, tight supply

JAKARTA, July 28 (Reuters) - Indonesian palm oil prices rallied on
Friday, tracking gains in Malaysia crude palm oil futures and tight
supply in the domestic market, traders said.

Crude palm oil prices at the state marketing centre's auction was
quoted at 4,167 rupiah ($0.458) a kg, up from 4,096 rupiah a kg on
Thursday.

There were no local auctions in North Sumatra's Medan, the key port
for palm oil exports, as sellers were on the sidelines awaiting
clearer price leads from Malaysia crude palm oil futures next week,
said a trader in Medan.

"There are maybe a few private deals, but basically it's quiet in
Medan. Besides, there are not too many crude palm oil stocks to offer
today," the Medan trader said.

In Jakarta, cooking oil was traded between 4,575 and 4,725 rupiah a
kg, up from between 4,590-4,600 rupiah a kg on Thursday.

"It's the rally in Malaysia that increase the prices. Also, cooking
oil supply in Jakarta is still tight," said a trader in Jakarta.

"Some buyers are willing to pay higher prices because they are a bit
panicky with the rally in prices," the Jakarta trader added.

Malaysian crude palm oil futures surged to close at two-year highs on
Friday, fuelled by heavy fund buying and strong fundamentals.

The benchmark third-month October <KPOV6> contract on the Bursa
Malaysia Derivatives ended up 46 ringgit at 1,620 ringgit ($442) a
tonne, after reaching a high of 1,626 in the morning.

That was the highest since June 2004.

On the export front, deals were reported for August shipments at $425
a tonne, free on board Belawan.

September shipments were offered at $435 a tonne, free on board
Belawan, but bids were unavailable for the shipment.

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Joyo Indonesia News Service
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