[Kabar-indonesia] 19 RI Biz/Econ Reports: Raw Sugar Import Duty; G-20; BNI; Rice; Capital Flight

[JoyoNews at aol.com]

19 Reports:

- Indonesia reimposes raw sugar
  import duty
- Indonesia property firm gets 
  US$150 mln loan for mall
- US Treasury undersecretary Adams 
  To Attend G20 Deputy Meeting In 
  Mid-October [incl: Indonesia]
- Vietnamese rice imported illegally
  into Indonesia
- update: On-year inflation to ease 
  in October, BPS says
- Indonesian govt should not worry 
  about capital flight: OBSE
- Indonesia's BNI seeks $150 mln 
  syndicated loans
- Indonesia's Mobile-8 plans to offer
  19.91 pct stake
- HK's Hutchison Telecom to launch 
  3G service in Indonesia by 
  yr-end - report
- WSJ: Japanese Firms Are More Upbeat
  Tankan Survey Eases Concern For 
  Economy; Awaiting Rate Signal]
- Indonesia's PaninBank named best
  domestic provider of forex service
- Indonesia's Bank Niaga chief to resign
  at year-end
- Indonesia aquaculture firm to offer
  16.4 pct stake
- Indonesia Matahari gets $350 mln
  demand for its notes
- Stock Alert - Indonesian construction 
  shrs up on hopes of more contracts 
  in Q4
- India's TVS makes Indonesia production
  base in SE Asia
- Royal Doulton to raise investment in
  Indonesia to US$125 mln next year
- Indonesia to maintain ban on palm oil
  seedling imports from PNG
- Indonesia crude palm oil down on
  Malaysia

Indonesia reimposes raw sugar import duty

JAKARTA, October 2 (Reuters) - Indonesia has reimposed a duty on raw
sugar imports for domestic refined sugar producers ahead of schedule,
following a decline in international prices, the agriculture minister
said on Tuesday.

Indonesia started a free-of-duty facility for raw sugar imports of
refined sugar producers on May 9 at a time of high international
prices. The facility was due to expire on Nov. 9.

"The (international) raw sugar prices are already low now, so we have
decided to reimpose the import duty at 250 rupiah ($0.272) per kg
effective Oct. 1," Anton Apriyantono told Reuters.

The decision comes at a time when the world price of raw sugar has
fallen to its lowest level in a year on commodity fund sales and
worsening market fundamentals.

On Monday, The New York Board of Trade's March raw sugar contract
slid 0.43 cent, or 3.6 percent, to finish at 11.32 cents per
lb, near the bottom of its 11.30-to-11.79 cents band. Sugar had
rallied in February to 25-year highs of 19.73 cents on fund buying.

Yamin Rahman, chairman of the Indonesian Refined Sugar Association,
said in the first nine months of the year the industry imported around
625,000 tonnes of raw sugar.

"Refined sugar output from January to September reached 730,000
tonnes," Rahman said, adding the industry aimed to produce 1.1 million
tonnes of the sweetener until the end of the year.

Refined sugar can only be consumed by the food and beverage industry
and is not allowed to enter the local retail market for public
consumption.

Indonesia, Southeast Asia's largest sugar consumer, has been stepping
up purchases to ensure adequate supplies during the Muslim fasting
month of Ramadan.

It is expected to produce 2.48 million tonnes of white sugar this
year, up from 2.24 million tonnes in 2005, while annual public
consumption is estimated at 2.6-2.7 million tonnes in 2006.

White sugar is produced from domestic sugar cane and is of a lesser
quality than refined sugar.

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

Indonesia property firm gets US$150 mln loan for mall

JAKARTA, October 3 (Reuters) - Indonesian property management 
firm PT Plaza Indonesia Realty Tbk said on Tuesday it has signed 
a US$150 million loan agreement with Sumitomo Mitsui Banking 
Corporation to expand a shopping complex in the capital.

Plaza Indonesia, which operates a premier shopping complex in downtown
Jakarta, kicked off a $225 million expansion of the property last
month.

Sumitomo Mitsui Banking Corporation is part of Sumitomo Mitsui
Financial Group Inc .

The project, first planned in the 1990s but put on hold because of the
Asian financial crisis, will add 201,500 sq metres (2.169 million sq
ft) to the glitzy Plaza Indonesia complex where top brands such as
Ferragamo to Versace have outlets.

The company has appointed Korea's Ssangyong Engineering & Construction
Co. to build the extension, which includes a luxury apartment block
and office buildings. The project is expected to be completed in 2009.

Plaza Indonesia's founding shareholders, comprising four companies
including diversified firm PT Bimantara Citra Tbk , control a 40.75
percent stake in the company. Singapore's UOB Kay Hian Holdings Pte
Ltd holds 11.33 percent and UBS AG controls 10.76 percent.

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

US Treasury undersecretary Adams To 
Attend G20 Deputy Meeting In Mid-October

WASHINGTON, Oct. 3 (Dow Jones)--Timothy Adams, the Treasury Department's 
undersecretary for international affairs, will travel to Australia for a deputies 
meeting of the Group of 20 economic group in mid-October, the Treasury said 
Tuesday. 

Adams' visit comes about a month before the G20 finance ministers gather in 
Australia, Nov. 18-19, for their annual meeting. 

Members of the G20 include finance ministers and central bank governors of 19 
countries: Argentina, Australia, Brazil, Canada, China, France, Germany, 
India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South 
Korea, Turkey, the U.K. and the U.S. 

The European Union is also a member, represented by the rotating council 
presidency and the European Central Bank. 

The managing director of the International Monetary Fund and the president of 
the World Bank also participate in G20 meetings on an ex-officio basis. 

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

Vietnamese rice imported illegally into Indonesia

SEMARANG, C Java, October 2 (Asia Pulse/Antara) - The chairman of the
Central Java Legislative Council (DPDR)`s Commission B, Khafid
Shirotudin, said he believed that imported rice had entered Central
Java and low-qualty rice from Vietnam had even been imported into
Indonesia illegally.

"Commission B has done some checking with several parties and found
out that imported rice has entered Semarang (Central Java`s provincial
capital) via Cirebon (in West Java). The rice entered our province
illegaly," Khafid said here Monday.

The commission had earlier reported that 500 tons of imported rice had
entered a number of traditional markets in Central Java but the report
was denied by a team from the Central Java provincial administration
and the Semarang Agency for the Promotion and Protection of Consumers.
The two latter parties said they had not found any imported rice in
the traditional markets in the province.

Khafid said the recent drop in the rice price was not due to the
existence of imported rice in the province but the government`s plan
to import 250,000 tons of the commodity in the near future.

Last Friday (Sept 29) at the Legi market in the Central Java town of
Solo, Commission B members found 1.5 tons of rice imported from
Vietnam earmarked for quake victims in Klaten and Yogyakarta.

"Perhaps due to its low quality, the rice was changed by the
recipients of the relief aid with other goods," he said, adding that
the rice from Vietnam was taken from last year`s stock in that country
which was then refreshed and sold at a lower price.

He said rice was a commodity prone to price fluctuations, and
therefore the government should also address provinces that are known
as rice-producing centres and enjoying rice surpluses like Central
Java and South Sulawesi to prevent impoted rice from entering the
provinces.

"The government should be consistent and not import rice as the
national rice stock was reported to be sufficient to meet domestic
needs." he said.

He said It was not easy for the government to stabilize the rice price
as the State Logistics Agency (Bulog) only covered about 10-15 percent
of the national rice stock and the rest was covered by traders so that
it was the market mechanism that would prevail in the rice trade.

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

On-year inflation to drop in October, BPS says

JAKARTA, October 3 (Asia Pulse/Antara) - The Central Bureau of
Statistics (BPS) predicts year-on-year inflation in October will drop
below two digits after reaching 14.55 per cent in September.

"God willing, year-on-year inflation next month will be below ten
percent unless there is no eventuality," BPS chief Rusman Heriawan
said in Jakarta on Monday.

He said inflation in October last year reached 8.7 per cent as a
result of a fuel oil price hike, fasting month and post-fasting
celebrations that pushed up prices.

He said he predicted the inflation in October would range between one
and 1.5 per cent if nothing extraordinary occurred.

He said prices of products such as meat, flour and sugar would
probably increase significantly in the month in line the Islamic
fasting month of Ramadhan and post-fasting celebrations.

He said the inflation in September was recorded at 0.38 per cent, up
from 0.33 per cent in August.

The inflation from January to September meanwhile was recorded at 4.06
per cent and 14.55 per cent year-on-year.

Rusman said based on data excluding 2006 when oil prices were raised,
inflation during the Islamic fasting month, post-fasting celebrations,
Christmas and New Year festivities had never been above two per cent.

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

Indonesian govt should not worry about capital flight: OBSE

JAKARTA, October 3 (Asia Pulse/Antara) - The Indonesian government
should not worry about foreign capital flight as many factors in
Inonesia are still attractive to foreign investors, an observer said.

"Both local and foreign investors will not easily move their money to
other countries because they certainly have many considerations before
relocating their business elsewehere," Standard Chartered Bank
economic observer Fauzi Icshan said in Jakarta on Monday.

He noted that Indonesia was afraid that a Singaporean government plan
to scrap tax on company dividends would trigger capital in Indonesia
to flee to the neighboring country.

The government, Icshan said, should find ways to improve the country`s
competitive edge and encourage foreign investors to remain loyal to
Indonesia`s domestic markets.

Indonesia, he said, was still an interesting place for foreign
investors as it is still offering a high interest rate and had an
undervalued stock market.

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

Indonesia's BNI seeks $150 mln syndicated loans

JAKARTA, October 3 (Reuters) - Indonesia's third largest lender, PT
Bank Negara Indonesia Tbk , has appointed Standard Chartered , Mizuho,
and ABN Amro to arrange $150 million worth of syndicated loans.

The state bank said in a statement on Tuesday it planned to use the
2-3 year loans to refinance debt and to support businesses, mostly at
its overseas branches.

The bank, which has a market capitalisation of $3.4 billion, said it
expected to get the loans next month.

"The interest rate for the loans will be tied to the London Interbank
Offered Rate (LIBOR)," BNI said.

BNI is the country's second-largest state bank with total assets of
146.8 trillion rupiah ($15.99 billion).

The government controls almost a 100 percent stake at the bank, with
less than one percent held by the public. It has branches in Hong
Kong, Tokyo and London.

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

Indonesia's Mobile-8 plans to offer 19.91 pct stake

JAKARTA, October 3 (Reuters) - Indonesian mobile phone company PT
Mobile-8 Telecom said on Tuesday it planned to offer 19.91 percent of
its enlarged shares in an initial public offering in November.

The company, 60.76 percent controlled by diversified firm PT Bimatara
Citra Tbk , had not decided the price of the IPO or the amount it
aimed to raise from the exercise.

Mobile-8 said in a statement that 57 percent of the proceeds would be
used to finance expansion plans, while the remainder would be
designated as working capital.

The company, which incorporated Code Division Multiple Access (CDMA)
technology instead of the widely used Global System for Mobile
communications (GSM), had 1.3 million subscribers as of June.

Last year, its revenue nearly tripled to 482.6 billion rupiah ($52.57
million). Its net loss narrowed to 179.2 billion rupiah, from 385.7
billion a year earlier.

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

HK's Hutchison Telecom to launch 3G service in Indonesia by yr-end - report

JAKARTA, October 3 (XFN-ASIA) - PT Hutchison CP Telecommunication, a
60 pct-owned unit of Hong Kong-listed Hutchison Telecommunications
International Ltd, said it plans to roll out its third-generation (3G)
cellphone service covering the main Java island at the end of this
year, Bisnis Indonesia reported, citing the company's director for
corporate services Sidarta Sidik.

He said the company recently received its 3G operational certificate
from the government, which should pave the way for PT Hutchison's
launch of its 3G cellular service.

Sidik said the company, formerly known as PT Cyber Access
Communication, plans capital expenditure of around 300 mln usd until
the end of this year to build a telecom network system, including
setting up 1,000 base stations in the Java island.

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

The Wall Street Journal
October 3, 2006

Japanese Firms Are More Upbeat

Tankan Survey Eases
Concern For Economy;
Awaiting Rate Signal

By YUKA HAYASHI

TOKYO -- Japanese companies are feeling more optimistic about business 
conditions, lessening concern that the nation's economy might be losing momentum.

The main diffusion index for large manufacturers in the Bank of Japan's 
quarterly tankan survey of business sentiment climbed to 24 in September, a 
two-year high, from 21 in June. The index, which was released yesterday, measures the 
difference between the number of companies saying business is good and the 
number that say business is bad.

Economists had, on average, predicted the reading would drop to 20, following 
a slew of disappointing economic indicators released during the past several 
weeks, including weak consumption and machinery orders. The surprisingly good 
tankan result revived talk of a possible interest-rate increase by the central 
bank this year.

The Bank of Japan in July abandoned its five-year policy of keeping 
short-term rates near zero, as Japan's consumer prices began to rise consistently and 
economic growth firmed. The central bank raised its key short-term rate to 
0.25%, and many economists were forecasting another rise before year end.

After that, however, a new calculation method depressed the consumer-price 
index and growth slowed a little. In recent weeks, market participants have 
pushed back their forecasts for the timing of the next rate increase to the first 
quarter of next year or even later.

The latest tankan result makes it more likely that the central bank will 
raise rates before year end, and economists are hoping for some kind of signal 
before the end of this month. "The result confirms Japan's domestic economy 
remains fairly healthy," says Hiroshi Shiraishi, a Lehman Brothers economist in 
Tokyo.

Companies' optimism was fueled in part by the yen's recent weakness against 
the dollar and euro, which makes their products more competitive in overseas 
markets and boosts the value of those earnings when converted back into yen. 
Large manufacturers said they planned to increase spending on plant and equipment 
by 16.9% during the fiscal year that ends in March. That was up 0.4 
percentage point from their plans three months earlier, and compares with a planned 
increase of 13.9% during the past fiscal year. For all types of companies, the 
average capital-spending plan was raised by two percentage points to an increase 
of 8.3% for the current fiscal year, the highest level since 1990.

The diffusion index for large nonmanufacturing companies, meanwhile, was the 
same as in June at 20, while the index for medium-size manufacturers improved 
one point to 14.

Still, companies in general remain somewhat cautious about the outlook for 
the coming months. Large manufacturers' expectations for business conditions in 
December fell back to 21 from 24. Economists attribute the decline to growing 
concerns that the U.S. economy might weaken, reducing demand for Japanese 
manufactured goods.

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

Indonesia's PaninBank named best domestic provider of forex service

JAKARTA, October 3 (Asia Pulse/Antara) - Indonesia's PaninBank was
named the best domestic provider of forex services by Hong Kong-based
Asia Money magazine, a spokesperson said here Tuesday.

More than 1,000 respondents which comprised of Asia-Pacific senior
treasuries and financial executives chose PaninBank as the best
domestic provider of forex services, PaninBank deputy president
Rosniati Salihin said.

The PaninBank rate was higher than that of other Indonesian banks
which were also surveyed by Asia Money.

Rosniati said the number of Asia-Pacific senior treasury and financial
executives asked by the poll this year increased by 10 percent
compared to that of last year.

The PaninBank's achievement could not separated from corporate's
continual efforts to develop products and services of treasury
transaction such as money market, foreign exchange transaction and
fixed income trade, she said.

Rosniati said foreign exchange daily transaction volume in PaninBank
last August increased by more than 41 percent compared to that of the
same period last year.

The increasing transaction volume boosted the growth of foreign
exchange transaction profit by 29 percent.

Incoming transfer transaction volume also increased by 31 percent to
US$1.35 billion while outgoing transfer transaction volume rose by 34
percent to US$1.84 billion in August compared to that of similar
period last year.

Besides PaninBank, other Asian banks named the best domestic provider
of forex services were Australia's Westpac (ASX:WBC), China's CITIC
Bank, HSBC Bank, India's ICICI Bank, and Korea Exchange Bank
(KSE:004940).

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

Indonesia's Bank Niaga chief to resign at year-end

JAKARTA, October 3 (Asia Pulse/Antara) - Bank Niaga (JSX:BNGA)
President Director Peter B. Stock has expressed his intention to
resign from his post at the bank at the end of 2006, a bank spokeman
said.

"Mr Stock has made known his intention to resign as Bank Niaga
president director late this year to the management," the bank`s
corporate secretary, Rizky P. Hasan, told the Jakarta Stock Exchange
here Monday.

Hasan said all things concerning the proposed resignation including
Stocks successor had been studied and would be announced by the
company.

It was widely rumored that Stock would give up his position after Bank
Lippo Director Jos Luhukay resigned from his post some time ago.

The rumors also had it that Bank Niaga would be merged with Bank Lippo
as the majority of the two banks` shares has already been acquired by
Malaysia`s Khazanah Berhad.

Khazanah had bought 87 per cent of Lippo Bank`s shares through its
subsidiary Santubong Investment B. V and 64 per cent of Bank Niaga`s
equity through Bumiputera-Commerce Holding Berhad.

Bank Niaga and Bank Lippo were two out of Indonesia`s 10 largest banks
as of July 2006.

Bank Niaga was ranked 7th and Bank Lippo 9th in terms of third party
funds securing Rp33.32 trillion (US$3.6 billion) and Rp24.97 trillion
respectively.

Bank Niaga would likely merge with Bank Lippo after Bank Indoneisa
(BI) or the centrl bank had introduced its single presence policy.

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

Indonesia aquaculture firm to offer 16.4 pct stake

JAKARTA, October 3 (Reuters) - Indonesian aquaculture company PT
Central Proteinaprima Tbk (CP Prima) plans to offer 16.38 percent of
its enlarged shares in an initial public offering in November.

The company, which raises shrimp and is 73.97 percent controlled by
unlisted company PT Surya Hidup Satwa, has not decided the price of
the IPO or the amount it hopes to raise from the exercise. Proceeds
would be used to expand its business.

Its revenue climbed 19.74 percent to just over 5 trillion rupiah
($544.7 million) last year, with net profit soaring 63.6 percent to
201.1 billion rupiah.

In the first half of 2006, the company's sales climbed 3.23 percent to
2.45 trillion rupiah compared with the year-ago period, while net
profit for the six months ended June 30 rose 35.4 percent to 95.9
billion rupiah.

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

Indonesia Matahari gets $350 mln demand for its notes

JAKARTA, October 3 (Reuters) - Indonesian retailer PT Matahari Putra
Prima Tbk said its $150 million offering of unsecured notes to fund
expansion generated $350 million in demand.

The company said late on Monday the three-year papers will carry a
semi-annual coupon of 9.5 percent and can be redeemed after one year.

The company will use the funds to fund expansion of its business
divisions: Matahari Department Store, Matahari Supermarket and
Hypermart, Matahari's president director, Benjamin Mailool, said in a
statement.

The company, with a market capitalisation of $241.5 million, had
earlier increased the size of the issue to $150 million from $100
million.

UBS Investment Bank and Credit Suisse were the joint bookrunners and
lead managers on the issue.

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

Stock Alert - Indonesian construction shrs 
up on hopes of more contracts in Q4

JAKARTA, October 3 (XFN-ASIA) - Construction companies' shares were
higher in mid morning trade as investors expect a pickup in contracts
in the fourth quarter given the government's stated intention to speed
up its infrastructure rollout plans in the final three months of the
year, dealers said.

The government's plans are expected to be detailed at an
infrastructure summit, to be held on Nov 1-3, they said.

Valbury Asia Securities analyst Reny Susanti said the government is
likely to offer various infrastructure projects to the private sector,
including toll-roads, power plants and ports, at the summit.

"This has helped spark buying interest in this sector," she said.

At 11.11 am, toll-road operator Citra Marga was up 20 rupiah, or 2.22
pct, at 920, state-owned construction firm Adhi Karya gained 30, or
4.62 pct, to 680 and Total Bangun Persada was up 15, or 2.97 pct, at
520. The composite index was down 0.990 points at 1,527.917.

Interest in Adhi Karya was also driven by news that it recently signed
a memorandum of understanding with the Bin Ladin group of Saudi Arabia
to construct monorail and other transport projects in Mekkah worth
around 5 bln usd, dealers said.

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

India's TVS makes Indonesia production base in SE Asia

Jakarta, October 3 (Xinhua) -- Indian motorcycle producer TVS Motor
Company has vowed to make Indonesia as its production base in
Southeast Asia, with production set to begin in early 2007, a local
newspaper reported Tuesday.

Having invested 43 million U.S. dollars to build a factory in
Indonesia, TVS aims to sell mostly moped models from its local
factory, whose production capacity is estimated at 300,000 units a
year, reported Bisnis Indonesia .

TVS director BLP Simha has said the factory construction in the West
Java town of Karawang was near completion.

"The factory is expected to begin operations early 2007, and before
November 2007, product sales begin," he said Monday.

The factory will also manufacture scooters and sport models.

Indonesian motorcycle market is dominated by Japanese producers.

Motorcycle sales in the first eight months of the year totaled 2.65
million units, of which the trio motorcycle giants -- Honda, Yamaha
and Suzuki -- made up of more than 2.5 million units.

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

Royal Doulton to raise investment in Indonesia to US$125 mln next year

JAKARTA, October 3 (Asia Pulse/Antara) - Royal Doulton, producer of
china, dishes and ceramic handicraft, will increase its investment in
Indonesia from US$50 million to US$125 million next year, a cabinet
minister said.

The company will move most of its production operations, research and
development and designing works from its head office in Britain to
Indonesia, Industry Minister Fahmi Idris said.

"Work is already in progress to gradually increase its investment in
the country, to be completed in the middle of next year," Idris said
after accompanying PT Royal Doulton's president Narinder Paul Arora
into a meeting with president Susilo Bambang Yudhoyono yesterday.

Royal Doulton, which began operating in the country 11 years ago, has
a factory and other facilities in Balaraja, Banten.

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

Indonesia to maintain ban on palm oil seedling imports from PNG

JAKARTA, October 3 (Asia Pulse/Antara) - The agriculture ministry says
the government will maintain its ban on imports of oil palm seedlings
from Papua New Guinea (PNG) as cases of a plant disease called lethal
yellowing are still being found in the country.

Inspections of Papua New Guinea's oil palm plantations by the ministry
found that the disease is still attacking oil palm trees in the
neighboring country marked with yellow leaves, chief of the ministry's
quarantine agency Syukur Iwantoro said.

The ban has been effective since January this year after seedlings
imported from the country were found to have been infected by the
disease.

Indonesia, the world's second largest producer of palm oil, is in the
process of expanding its oil palm plantations, requiring a larger
supply of seedlings.

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

Indonesia crude palm oil down on Malaysia

JAKARTA, October 3 (Reuters) - Indonesian crude palm oil prices were
down in thin trade on Tuesday, tracking losses in Malaysian crude palm
oil futures, traders said.

At the state marketing centre in Jakarta, crude palm oil traded lower
at 4,152 rupiah ($0.452) per kg compared with 4,180 on Monday, with
1,500 tonnes changing hands.

In North Sumatra's Medan, crude palm oil was slightly lower at between
4,183 and 4,185 rupiah per kg, compared with 4,186 on Thursday.

There was no auction in Medan on Monday and Friday.

"The market was active today, but falls in Malaysia have put pressure
on the prices," a Medan-based trader said, adding that 1,500 tonnes of
crude palm oil changed hands.

The benchmark third-month December contract on the Bursa Malaysia 
Derivatives exchange was down 19 ringgit at 1,539 ($418) a tonne after 
trading in a range of 1,537 and 1,550 ringgit.

In Jakarta, olein traded at between 4,625 and 4,700 rupiah per kg
compared with 4,650-4,675 on Monday.

On the exports front, crude palm oil was offered at $422.5-425 a tonne
for October, November and December shipments, free on board Belawan,
while bids were seen at $417.5.

------------------------------------------
Joyo Indonesia News Service
------------------------------------------