[Kabar-indonesia] 19 RI Biz/Econ Reports: More Rate Cuts?; Asia FTAs; IFC Rankings [+JSX; Rupiah]

[JoyoNews at aol.com]

19 Reports:

- Bank Indonesia Gov: Room For More 
  Rate Cuts Up To End-'06
- Indonesia's rank in IFC's 'easiness of
  doing business' index falls
- Asia should consider merging its myriad 
  of free trade deals, ADB economist says 
- Indonesia Shares End Higher 
  As Telkom, Mining Stocks Gain
- Indonesia Rupiah Ends Steady; 
  Fund Inflows Meet Dlr Bids
- RI Makes US$200 Million Saving in
  IMF Loan Interest Payment
- Bank Indonesia awards 31.5 trln rupiah
  1-mth SBIs at fixed rate of 11.25 pct
- Indonesia's Barito denies report Chandra Asri
  to use it for backdoor listing
- Stock Alert - Indonesia's Barito sharply higher
  on speculative interest
- Indonesia press: Bk Mandiri Unit To Issue
  IDR200B Sub Debt
- Indonesia Excelcomindo Launches WiFi
  Internet Access
- Indonesia to develop telecommunication
  network
- Indonesia's Truba Alam sets indicative IPO
  price of 110-125 rupiah/share
- JSX-listed Asahimas to sell plants after poor
  H1 performance
- Indonesia's Bouraq Airlines to fly again by
  the end of this year
- Indonesian patrol boat seizes Chinese
  fish poacher
- Malaysian plantation firms set to expand
  operations in Indonesia
- Indonesia palm oil prices mixed, Malaysia
  data eyed
- JP: Elnusa waits on approval for IPO 

Bank Indonesia Gov: Room For More Rate Cuts Up To End-'06

JAKARTA, September 6 (Dow Jones)--The "positive response" of domestic
commercial banks and capital markets to recent monetary easing
indicates the central bank can continue benchmark rate cuts until the
end of 2006, Bank Indonesia Governor Burhanuddin Abdullah said late
Wednesday.

"Central bank efforts in cutting interest rates have obtained a
positive response from the bank system and capital markets," Abdullah
told reporters. "If this...continues to happen, then room for
continuously cutting the Bank Indonesia rate up to the end of the year
is open."

Bank Indonesia cut its benchmark rate by 50 basis points to 11.25%
Tuesday, the fourth cut since monetary policy easing began in May.

Abdullah said that the central bank will be "very prudent" in weighing
future benchmark rate movement decisions, but didn't elaborate
further.

Bank Indonesia's Board of Governors will discuss future possible
interest rate decisions at its next regular monthly meeting Oct. 5.

Analysts expect the benchmark Bank Indonesia one-month rate to ease to
10.00%-10.50% by the end of the year in tandem with a decline in
on-year inflation to an official target of 7.0%-8.0% in the same
period. Indonesia's on-year inflation rate dropped to 14.90% in August
from 15.15% in July.

Adbullah said that easing inflationary pressure may exceed
policy-makers expectations.

"With this recent progress (in reducing inflation)... we see the
probability for inflation to go lower than 7.0%," he said.

Indonesia is bucking a global monetary tightening trend as its
policy-makers look to rate cuts as a means of jump-starting faltering
economic growth.

The economy grew 4.97% on-year in the first half of 2006, suggesting
that the government will be hard-pressed to meet its official forecast
of 6.2% gross domestic product growth in full-year 2006.

Indonesia's economy expanded 5.6% in 2005 and the government has
projected 6.3% growth in 2007.

Abdullah said rate cuts initiated in May have already had the desired
effect of spurring growth in commercial bank lending.

Commercial banks' new lending totaled IDR10 trillion last month,
compared with IDR1 trillion in the previous month, central bank
spokesman Budi Mulia said Tuesday.

New bank lending is essential for an increase in domestic consumption,
which delivers more than 60.0% of Indonesia's total annual GDP.

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Indonesia's rank in IFC's 'easiness of doing business' index falls

JAKARTA, September 6 (XFN-ASIA) - The International Finance
Corporation said Indonesia's ranking in the IFC's 'easiness of doing
business' index has fallen, reflecting the government's slow progress
in enacting regulatory reforms.

In the IFC's 'Doing Business 2007' report, Indonesia ranked 135 out of
175 countries surveyed. Last year it ranked 115 out of 155 countries
surveyed, or 131 out of 175 if the 20 new countries are included.

"However, it is important to note that the fall in Indonesia's ranking
(on the index) is not because Indonesia has done little to undertake
regulatory reforms, its just that other countries have moved much
faster," Caralee McLiesh, the report coordinator, said on a
teleconference.

The report noted that the number of days to start a business in
Indonesia, however, has improved from 151 to 97 days, while the number
of procedures to go through before obtaining a business license
remains the same at 19.

The IFC said the number of days and procedures to enforce contracts
remains at 570 and 34 respectively, while the number of days to
register property also remains at 42 days.

Indonesia has also begun the implementation of electronic filing of
taxes, it said.

"To improve its ranking, Indonesia will need to do more, and faster,
to streamline procedures and create a business-friendly environment,"
Andrew Steer, World Bank country director said.

Elsewhere in the region it takes just 35 days to start a business in
China, with 13 procedures; 22 days with 12 procedures in South Korea;
30 days and 9 procedures in Malaysia; and 48 days and 11 procedures in
the Philippines.

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

Asia should consider merging its myriad 
of free trade deals, ADB economist says 

HANOI, Sept. 6 (AP): Asian economies should consider merging its myriad of 
free trade agreements into a larger, single pact, a top Asian Development Bank 
economist said Wednesday.

"We are encouraging Asian economies to take an integrated approach, to seek 
some convergence across different free trade agreements and to come up with a 
wider, single FTA so that they benefit more with liberalization efforts," said 
Masahiro Kawai,the Manila-based lending institution's head of regional 
economic integration.

With separate deals, smaller, less-developed nations could easily get lost in 
negotiations and may not reap the full benefits of trade liberalization.

"We need more balanced liberalization," Kawai told reporters on the sidelines 
of an Asia-Pacific Economic Cooperation finance ministers meeting. "Usually 
when a big country makes a deal witha small country, it's very hard for a 
smaller country to make a deal reflect the smaller country's interest."

He cited the examples of Laos and Cambodia as two nations who should analyze 
the benefits of any deal on their own economy.

They are two of Southeast Asia's least developed economies and is heavily 
reliant on funding from the ADB and other lending institutions.

Laos and Cambodia are part of the Association of Southeast Asian Nations, or 
ASEAN, a 10-bloc group currently in a frenzy to complete trade pacts between 
itself and several other regional economic powerhouses.

ASEAN is in separate talks with China, South Korea and Japan on agreements 
that would also include trade in services, apart from goods. The bloc is also 
talking free trade with Australia, New Zealand and India.

Japan had last month proposed a 16-nation pan-Asian free trade zone merging 
the deals that ASEAN is currently thinking about.

Southeast Asian nations said it would first focus on sealing individual 
agreements before looking into Tokyo's proposal.

ASEAN secretary-general Ong Keng Yong had said last month the larger and more 
developed members would help its smaller and less-developed nations reform 
and not get lost as they negotiate their deals.

Seven ASEAN members are also part of APEC, which account more than 55 percent 
of world GDP and about 48 percent of world trade. APEC, which first met in 
1989, gathers some of the world's largest economies: the United States, Russia, 
China, Canada and Japan; and blends them with Malaysia, Thailand, 
Singapore,Vietnam, Indonesia, Brunei, Chinese Taipei, Hong Kong, Mexico, the Philippines, 
Chile, Papua New Guinea, Australia, New Zealand, Peru and South Korea. (**) 

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Indonesia Shares End Higher As Telkom, Mining Stocks Gain

JAKARTA, September 6 (Dow Jones)--Indonesian shares ended higher
Wednesday, with late gains in bellwether Telkom and mining blue chips
keeping the main index in positive territory, dealers said.

However, overall sentiment remained cautious as falls in several Asian
markets spurred sporadic profit-taking in resources and plantation
blue chips, limiting gains, they said.

"The main index will still move within a very limited range in the
coming sessions as the market is waiting for fresh incentives," said a
trader with BNI Securities.

The Jakarta Stock Exchange Composite index ended up 4.325 points, or
0.3%, at 1473.563, up from an intraday low of 1463.752.

Gainers led decliners 66 to 56, with 65 shares unchanged.

Volume was 3.2 billion shares valued at IDR3.27 trillion, compared
with 1.6 billion shares valued at IDR1.6 trillion Tuesday.

Bellwether Telekomunikasi Indonesia rose 0.62% to IDR8,100 after
Citigroup upgraded its recommendation to "buy" from "hold" on a
promising outlook.

Nickel miner Inco rose 4.8% to IDR23,150 and rival Aneka Tambang ended
up 3.6% at IDR5,700 on expectations of improved 2006 earnings due to
an increase in commodity prices.

On the downside, gas distributor Gas Negara fell 1.9% to IDR12,950 on
a correction after rising more than 5% over the previous six sessions
on hopes the government will sell a 5.31% stake in the company at
premium.

Plantation company Astra Agro dropped 1.6% to IDR9,300 and rival
London Sumatra ended down 2.1% at IDR4,750 on profit-taking after
gaining more than 4% over the previous six sessions in the wake of the
development biofuel industry.

Looking ahead, traders expect shares to trade higher Thursday on
followthrough buying in nickel and telecommunication blue chips.

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Indonesia Rupiah Ends Steady; Fund Inflows Meet Dlr Bids

JAKARTA, September 6 (Dow Jones)--Indonesian rupiah ended steady for
the second consecutive day Wednesday as capital inflows were offset by
dollar demand from importers, dealers said.

'Foreign investors who likely bought some Bank Permata shares
yesterday sold dollars, but bids from importers were persistent,' a
dealer with a foreign bank said.

The government Tuesday sold 60% of its 25.9% stake in Bank Permata to
foreign investors for $194 million.

The dollar closed at IDR9,085, little changed from its close Tuesday
at IDR9,080, after trading between IDR9,070 and IDR9,093.

Dealers said the dollar was quite well bid during the afternoon
session as several market participants trimmed their short-dollar
positions due to persistent dollar demand from importers.

Dealers expect the dollar to trade between IDR9,070 and IDR9,100 Thursday.

Bond prices were mostly higher late Wednesday after Bank Indonesia cut
its benchmark rate by 50 basis points Tuesday. The yield on the
government's seven-year bonds was down at 10.48% late from 10.7%
Tuesday, dealers said.

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

Bisnis Indonesia
September 6, 2006

RI Makes US$200 Million Saving in IMF Loan Interest Payment

JAKARTA: The acceleration of debt payment to the International
Monetary Fund (IMF) will be significant in reducing the government's
loan interest burden by US$200 million.

Minister of Finance Sri Mulyani Indrawati said that without debt
payment acceleration to the IMF, the government would suffer from
US$800 million in loan interest burden by 2010.

"With the debt payment acceleration, the burden of loan payment can be
reduced by US$0.6 billion," she informed at the plenary meeting on the
government's response to the House's general view on State Budget
Draft and Financial Note 2007 yesterday.

The saving, she continued, was expected to improve the overall
economic outlook by boosting the performance of the external sector
and enhancing the market confidence in Indonesia's economy.

She added that the debt payment acceleration would also polish the
image of Indonesia before the eyes of the international community.

Currently, she revealed, Indonesia's balance sheet and deposit
reserves were still stable, so that the acceleration of debt payment
would not upset the national economic outlook.

To maintain the stability of deposit reserves, she explained, the
payment would be made gradually and prudently in accord with the
amount of deposit reserves, the monetary condition development and the
stability of the rupiah exchange against the US dollar.

The central Bank (BI) as the monetary hawk, she inserted, was expected
to be able to manage deposit reserves perfectly and right on target.

BI would be able to perform its task, she stated, if they could make
deposit reserves as a neutralizing element whenever there were
external fluctuations.

Based on the conditions, the government and BI took steps to
accelerate the debt payment to the IMF in 2006.

Indonesia serviced 50% of its entire debts to the IMF on June 30, 2006.

Previously, the total loans borrowed from the IMF under the Extended
Fund Facility (EFF) agreement, reached special drawing rights
(SDR)5.1313 billion or US$7.51 billion.

Based on the initial schedule agreed by Indonesia and IMF, the loans
will be due in December 2010.

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

Bank Indonesia awards 31.5 trln rupiah 1-mth SBIs at fixed rate of 11.25 pct

JAKARTA, September 6 (XFN-ASIA) - Bank Indonesia said it has awarded
31.5 trln rupiah worth of one month Bank Indonesia Certificates (SBI)
at a fixed rate of 11.25 pct.

The auction absorbed 80.32 pct of the incoming bids.

The 1-mth SBI rate is pegged to the benchmark BI rate, which was cut
by 50 basis points yesterday.

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

Indonesia's Barito denies report Chandra Asri to use it for backdoor listing

JAKARTA, September 6 (XFN-ASIA) - PT Barito Pacific Timber denied a
news report that said the firm may be used as a backdoor listing
vehicle by PT Chandra Asri Petrochemical Center .

'Had there been such plan, it would have been a very complicated one.
So, Barito's management should have known. But I can confirm there was
no such plan,' Barito corporate secretary and director Salwati
Agustina told XFN Asia.

Investor Daily earlier cited unnamed sources as syaing that Chandra
Asri has assigned UBS Warburg to help prepare a backdoor listing for
the company which involved using Barito as the listing vehicle.

Barito is 22 pct owned by businessman Prayogo Pangestu, who is also a
shareholder of Chandra Asri.

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

Stock Alert - Indonesia's Barito sharply higher on speculative interest

JAKARTA, September 6 (XFN-ASIA) - Integrated plywood maker PT Barito
Pacific Timber was sharply higher in speculative early trade following
a news report that the firm may be used for a backdoor listing,
dealers said.

Barito was up 50 rupiah or 13.5 pct at 420 on 45.79 mln shares.

Dealers said investors were responding to a report by Investor Daily
that PT Chandra Asri Petrochemical Center has appointed UBS Warburg as
financial adviser to prepare the company's backdoor listing via
Barito.

'People are buying on this report,' said a dealer with Panin Securities.

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

Indonesia press: Bk Mandiri Unit To Issue IDR200B Sub Debt

JAKARTA, September 6 (Dow Jones)--The Islamic banking unit of PT Bank
Mandiri (BMRI.JK) will issue IDR200 billion in subordinated bonds next
month to strengthen its capital base, Bisnis Indonesia reported
Wednesday.

"It (the bond issue) will be take place via private placement," the
newspaper quoted Bank Syariah Mandiri President Director Yuslam Fauzi
as saying.

The newspaper reported that the bank may also issue convertible bonds
in the future before it offers a stake to the public. The report
didn't give details of the two plans.

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

Indonesia Excelcomindo Launches WiFi Internet Access

JAKARTA, September 6 (Dow Jones)--Indonesian cellular
telecommunications operator PT Excelcomindo Pratama (EXCL.JK)
Wednesday launched a high-speed internet access service based on
wireless fidelity technology.

The company claimed that its WiFi internet access gives wider coverage
than the usual hot spot internet connection.

"Customers can enjoy (our internet access service) anywhere around a
building as long as the area is still under (Excelcom's) GSM
coverage," the company said in a press statement.

It hopes that the new service will boost the company's position as the
"first convergent telecommunication services in Indonesia, backed by
its fiber optic network."

Telekom Malaysia (4863.KU) holds around 60% of Excelcom.

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

Indonesia to develop telecommunication network

JAKARTA, September 6 (Xinhua) -- The Indonesian government will hold a
national and international fiber optic and wireless network
construction bid in an effort to speed up development of an Internet
Protocol-based telecommunication network, a senior official said.

"We will prepare the tender procedure in the next two weeks," Antara
news agency quoted Communication and Information Minister Sofyan
Djalil as saying here Wednesday after opening an IndoComtech computer
exhibition at the Jakarta Convention Center.

The fiber optic development project would hopefully boost domestic
industry of communication and technology (ICT) and reduce the high
tariff of Internet, he said.

With fiber optic-based telecommunication network connections with
foreign states, the Internet tariff in Indonesia could be reduced
significantly, he said.

"The government is ready to reduce the Internet tariff for the sake of
ICT development," he said.

The minister, however, did not mention the capacity of fiber optics
that would be needed to build the network and the investment value of
the project.

The government, he said, would not reap benefit from the bid but only
facilitate the network's development.

Sofyan said that some telecommunication operators had already built
fiber optic networks that encircled Indonesia.

The government's plan to establish fiber optic-based telecommunication
network would create good competition with the other telecommunication
operators, he said.

"The bid will be conducted openly. It's not impossible that foreign
investors will also take part in the bid," he said.

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

Indonesia's Truba Alam sets indicative IPO price of 110-125 rupiah/share

JAKARTA, September 6 (XFN-ASIA) - PT Truba Alam Manunggal has set an
indicative price of 110-125 rupiah per share for its planned initial
public offering (IPO) of 5 bln shares, or 38.46 pct of its enlarged
capital, an official from the underwriting firm, PT Danatama Makmur,
said.

Truba will also issue 2.8 bln warrants that can be exercised from
April 5, 2007 until Oct 5, 2009, Stefan Fang, a director of Danatama
Makmur said. For the warrants the exercise price is set at 120-135
rupiah each.

Fang said the IPO size could be increased if demand exceeds the size
of the offer during the bookbuilding period, which will last from
today until next Monday.

The IPO is slated for Sept 27 to 29.

Truba plans to use all of the proceeds to build a 2 x 100 megawatt
power plant on the resort island of Bali.

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

JSX-listed Asahimas to sell plants after poor H1 performance

JAKARTA, September 6 (Asia Pulse/Antara - PT Asahimas Flat Glass
(JSX:AMFG), a joint venture between Asahi Glass Co. Ltd of Japan and
PT Rodamas Indonesia, is seeking to sell its factories in Surabaya and
Solo for Rp25 billion (US$2.77 million).

The plan comes after the manufacturer of sheet glasses released poor
results for the first half of this year following the fuel price hikes
late last year, with net profit shrinking 90 per cent to Rp12.8
billion.

Faced with limited cash flow, Asahimas now wants to sell the glass
plants which cannot operate optimally, company spokesman Rusli Pranadi
said.

He said the company also plans to sell other non productive assets
such as apartments to improve its cash flow.

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

Indonesia's Bouraq Airlines to fly again by the end of this year

JAKARTA September 6 (Asia Pulse/Antara) -- A new investor will operate
Bouraq Airlines before the end of this year after the carrier has been
lying idle since July last year due to financial problems, an official
said.

Air Transort Director General Mohammad Ikhsan said preparations for
re-operation are still in progress but expected to be ready before the
end of this year.

Iksan refused to name the new investor, but said the investor is not
Rachmat Gobel, an industrialist , who owns a large electronic company,
earlier widely reported planning to acquire the ailing airline.

Rachmat, however, said he has not given up hope to acquire the
airline, adding the prospects are still good for Bouraq.

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

Indonesian patrol boat seizes Chinese fish poacher

SURABAYA, September 6 (Asia Pulse/Antara) - A naval patrol boat of
Eastern Fleet Command has captured Chinese vessel KM Chang Yu with 100
tons of fish on board for poaching in Indonesian waters.

A spokesman for Eastern Fleet Command, Drs Toni Syaiful said here on
Tuesday, the 232-dwt vessel was seized while poaching in Indonesian
waters using trawls.

"The illegal activity was spotted by the naval patrol boat KRI
Pandrong-801 last week when on duty in the Arafuru waters.

Commanded by Captain Budhiarto Kreno Utomo, the naval ship caught KM
Chang Yu red-handed while poaching in Indonesian waters.

After finding that the fishing vessel had used trawls, the vessel
steered by Jiang Li was ordered to stop its fishing operation to allow
naval personnel to conduct a check.

KM Liao Chang Yu was proven to have operated in Indonesian waters and
used trawls which are banned in Indonesia.

It was also reported that the fishing gear was not specified in its
permit, and the vessel was alleged to have unloaded its catch at sea
and has no other documents for fishing in addition to the employement
of two other crew members.

Then, the vessel with a crew of 16 and fish on board was towed to the
naval base in Marauke for further legal process, he said.

Earlier, Marine and Fishery Affairs Minister Freddy Numberi said that
Phillipine, Thai and Chinese fishing boats were banned from entering
Indonesian waters without any concept favorable to the Indonesian
people.

"In the past they could enter Indonesian waters under a license
concept, but now they are only allowed to operate in our waters under
an investment concept," he said when speaking at a seminar on illegal
fishing at Surabaya University (Ubaya).

He also said that the license of the Philippines fishing vessels had
expired last year, while at the end of this year is the turn of Thai
fishermen to have their fishing cooperation terminated. The license of
the Chinese fishing boats will expire next year.

"They will be allowed to operate in Indonesian waters only under an
investment concept. Their 30-year cooperation under a licence concept
had inflicted a loss of about Rp30 trillion (US$3.3 billion) to
Indonesia every year because a great deal of the country's marine
resources had been exploited by other countries," he said.

Under an investment concept, foreign fishing vessels have the right to
enter Indonesian waters on the condition that they build a fish
processing industry in Indonesia.

In this way, Indonesia's marine resources would not go to other
countries and in practice Indonesians will also be provided with job
opportunities.

"Foreign fishing vessels violating this concept will be deemed as
poaching in Indonesian waters. Therefore the Philippines this year
will enter Indonesian waters again under an investment concept by
building fish processing industries in Bitung, Papua and Riau," he
said.

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

Malaysian plantation firms set to expand operations in Indonesia

JAKARTA, September 6 (Asia Pulse/Antara) - Three large Malaysian
plantation companies, Kumpulan Guthrie Bhd (KGB), Golden Hope
Plantations Bhd and PBB Oil Palms Bhd, are still hoping to expand
operations in Indonesia.

The Indonesian Palm Oil Commission (KMSI) said PBB Group Berhad, which
already has 120,000 hectares of oil palm plantation in Indonesia wants
to expand its plantation by 60,000 hectares .

Golden Hope Bhd wants to acquire 20,000 hectares of plantations to add
to its 150,000 hectares it already has in the country, KMSI
chairperson Roesdiana Soeharto said.

Guthrie, which already has 220,000 hectares of oil palm plantations in
the country wants to expand its plantations by 20,000 hectares and
build crude palm oil processing plant with an investment of Rp300
billion.

KGB chief executive Datuk Abdul Wahab Maskan described as conducive
the investment climate offered by Indonesia is seeking to acquire a
further 20,000 hectares of plantations.

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

Indonesia palm oil prices mixed, Malaysia data eyed

JAKARTA, September 6 (Reuters) - Indonesian palm oil prices were mixed
in thin trade on Wednesday, as investors were hesitant about tracking
a firmer price trend in Malaysia ahead of stocks data next week.

At the state marketing centre's auction, that sells palm oil from
state plantations, crude palm oil traded lower at 4,258 rupiah
($0.469) per kg on Wednesday, compared with 4,266 rupiah on Monday.

The centre did not hold any auction for the local market on Tuesday.

In North Sumatra's Medan, the main port for palm oil exports, crude
palm oil quoted higher at 4,300 rupiah per kg, compared with 4,264 to
4,276 rupiah per kg on Tuesday.

"The market is a bit slow, most players are watching price movements
in Malaysia that were firm today," a Medan-based trader said.

Traders said the market was also awaiting August output and stocks
data due to be released by the Malaysian Palm Oil Board on Monday.

In Jakarta, olein was traded steady at 4,850 rupiah on Wednesday, with
some 200 tonnes of cooking oil changing hands, a trader said.

On the exports front, sellers offered crude palm oil for September and
October shipments at $435 a tonne, with bids seen at $430.

November shipments were quoted at $437.5 a tonne, without any bids reported.

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

The Jakarta Post
September 6, 2006

Elnusa waits on approval for IPO 

Andi Haswidi, The Jakarta Post, Jakarta

PT Elnusa, one of state oil and gas company Pertamina's performing 
subsidiaries, may soon offer up to 20 percent of its stake to the public, according to 
an executive. 

"We are planning to do it as soon as possible. We have talked about this with 
our shareholders and we are still waiting for the green light from the 
government," Elnusa president director Rudy Radjab said Tuesday. 

The plan to go public, Rudy said, is part of the company's strategic target 
to become a better-managed business entity, which could eventually improve 
performance. The firm is targeting to boost its annual revenue to Rp 6 trillion by 
2009, about four times its current revenue. 

Elnusa is a holding company which groups together 14 business units operating 
in the oil and gas service sector, both upstream and downstream, and 
information technology. 

"Elnusa is the only company under Pertamina that possesses the competence in 
oil and gas, both upstream and downstream, while also expertise in information 
technology," Rudy said. 

This year, the company is aiming to book total revenue of Rp 1.7 trillion, 
with an estimated profit of Rp 100 billion. "So far (this year), our revenue has 
reached around Rp 1.3 to 1.5 trillion," he said. 

He did not mention last year's figure. But the Rp 100 billion profit estimate 
is a stark contrast to the firm's financial condition in 2000, when it 
recorded Rp 250 billion in losses. 

"We had plans to launch the IPO earlier. But the crisis struck and we had to 
drop it as the company was dealing with some $60 million in debt," Rudy said. 

Elnusa, representing Pertamina, and the National Iranian Oil Refining & 
Distribution Co (NIORDC) signed a memorandum of understanding in May to construct a 
$4 billion refinery with the production capacity of 300,000 barrel of oil per 
day (bpd) in Java. 

The refinery, expected to start production in 2010, is partly owned also by 
Venezuelan state oil firm Petroleos de Venezuela (PDVSA), with the agreement 
set to be signed on Sept. 12. 

The construction has yet to commence as the three parties are waiting for 
other interested investors, with negotiations with various business groups 
currently underway, added Rudy. 

"The PDVSA will have a 25 percent stake in the refinery, Iran's NIORDC 25 
percent and Elnusa 30 percent. Japan's Sumitomo has expressed interest in having 
a 20 percent stake in the project, but nothing has been confirmed yet." 

Rudy said that about 70 percent of the output would be exported. 

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Joyo Indonesia News Service
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