[Kabar-indonesia] 22 Biz/Econ Reports: RI Says Foreign Investment Rising Despite IFC Survey

[JoyoNews at aol.com]

22 RI Biz/Econ Reports: 

- Indonesia says foreign investment rising
  despite fall in rank in IFC survey
- Indonesian Shares End Dn Tracking 
  Regional Slide; Bks Down
- Indonesia Rupiah Ends Dn On Dlr Demand 
  From Oil Importers
- Indonesia's Indofood sees yr-end noodle
  market share at 75-80 pct
- FT: StanChart expands in Indonesia
- Indonesia's PPA to issue US$49 mln bond 
  to meet yr end budget target
- Stock Alert - Indonesia's Bank Panin
  higher on laggard interest
- Indonesian govt to develop telecom network
- Imported rice to enter Indonesia October 1
- Indonesia's PTPN X buys 9,000 T of raw sugar
- Indonesian Govt Revising Sugar Import Tariffs
- Indonesia's Bakrie reports higher natural rubber
  output in H1
- BI: BSD to Issue IDR500 Billion Bonds
- Indonesia's Asuransi Sinar post US$1 mln
  H1 net profit
- Suzuki auto sales continue rising trend in
  Indonesia
- India's TVS Motor to tap Indonesian market in
  2-3 years: MD
- Investors build 2 tuna fish processing plant
  in Indonesia
- Indonesia's shrimp production likely to be
  below yr target
- IFC to provide US$350 mln for SMEs in Indonesia
- BT (Malaysia): SME to tap Indonesian market
- Indonesia, Singapore to launch joint investment
  promotion
- JP: Korean province shows off products 

Indonesia says foreign investment rising despite fall in rank in IFC survey

JAKARTA, September 7 (XFN-ASIA) - Coordinating Minister for Economic
Affairs Budiono said new foreign investment is picking up although
Indonesia's ranking in the International Finance Corp's 'ease of doing
business' index has tumbled in the latest IFC survey.

World Bank investment arm IFC announced yesterday that Indonesia's
rank in the said index has dropped to 135th out of 175 countries
surveyed. Last year, Indonesia ranked 115th out of 155 countries
surveyed, or 131st out of 175 if the 20 new countries are included.

'We should look at it as an input, not a target,' Budiono told reporters.

'We want the rank to improve but what is more important is that
investment continues to rise,' he added.

He said investors actually believe that Indonesia has made progress in
boosting the business climate. The government should just focus on
implementing the reform packages that it has planned, he added.

Asked if the survey might scare away investors, Budiono said: 'No. In
Batam, the situation is getting better. If in the past investors had
left (the island), now they are coming in.'

Batam is an industrial island near Singapore.

He also said he believes the investment climate will continue to
improve in line with improved macro-economic stability.

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

Indonesian Shares End Dn Tracking Regional Slide; Bks Down

JAKARTA, September 7 (Dow Jones)--Indonesian shares ended slightly
lower Thursday as market participants tracked a regional market slide
amid an absence of fresh local cues, traders said.

The lack of cues prompted a resumption in the selling of blue chips
that began after prices peaked ahead of a Bank Indonesia interest rate
decision, a dealer at a foreign bank said.

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

"The market followed a decline in the wider region's (bourses)...there
was no specific news behind it," the dealer said.

"Indonesia is still one of the best performing (stock markets) in the
region this year to date, so it's natural if people do a bit of
selling," he added.

The Jakarta Stock Exchange Composite index ended down 2.097 points, or
0.14%, at 1470.466. The main index rose 0.3% Wednesday on late gains
in telecommunication and mining blue chips.

Gainers led decliners 77 to 49, with 76 shares unchanged.

Volume was 1.6 billion shares valued at IDR1.4 billion, compared with
3.2 billion shares valued at IDR3.27 billion Wednesday.

Bank sector stocks, which had previously risen in anticipation of
Tuesday's rate cut, bore the brunt of the market's decline.

Bank Central Asia, Indonesia's second-largest bank by assets, closed
down 1.1% at IDR4,450, while Bank Niaga ended down 2.7% at IDR710.
Bank Danamon Indonesia lost 1.0% to close at IDR5,100, while Bank
Mandiri, Indonesia's largest bank by assets, ended flat at IDR2,175.

"Bank stocks were under pressure, but if you look at the volume (of
those share sales), it's not that big or anything to really worry
about," a trader said.

Bellwether Telekomunikasi Indonesia declined 1.2% to IDR8,000, while
rival Indosat ended flat at IDR4,625.

The Jakarta index's direction Friday will hinge on movements in the
New York bourses overnight and regional markets tomorrow, traders
said.

"On a short-term basis, until there are new local cues, the index is
following the region, but overall (investor) sentiment remains
positive," a trader said.

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Indonesia Rupiah Ends Dn On Dlr Demand From Oil Importers

JAKARTA, September 7 (Dow Jones)--The Indonesian rupiah ended lower
Thursday on dollar demand from oil importers, dealers said.

'Some foreign investors covered back their dollar-short positions
because oil importers persistently bid the unit,' a dealer with a
foreign bank said.

The dollar closed at IDR9,100 versus Wednesday's close of IDR9,085.

The greenback rose to IDR9,110 earlier in the day, tracking the
dollar's rise versus the yen, but then gave up a fraction of its gains
as the dollar failed to keep up its advance against the Japanese
currency later in the day.

Dealers expect the dollar to trade between IDR9,080 and IDR9,120 Friday.

Bond prices were mostly higher late Thursday on expectations of
further rate cuts, dealers said. The yield on the government's
three-year retail bonds dropped to 10.84% from 11.03% late Wednesday,
dealers said.

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Indonesia's Indofood sees yr-end noodle market share at 75-80 pct

JAKARTA, September 7 (XFN-ASIA) - PT Indofood Sukses Makmur expects
its share of the domestic noodle market to be in the range of 75-80
pct by year-end amid increased competition, vice president Fransiscus
Welirang said.

Indofood anticipates its share of the flour and branded cooking oil
markets to be about 68-69 pct and 50 pct, respectively, he added.

Welirang did not give the company's current market shares for those products.

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

The Financial Times (UK)
September 7, 2006

StanChart expands in Indonesia

By Peter Thal Larsen

Standard Chartered has strengthened its foothold in Indonesia by
increasing its stake in Permata, one of the country's largest banks.
StanChart and its local partner, PT Astra International, will pay the
Indonesian government 1,750bn Rupiah (Pounds 101m) for an additional
25.9 per cent stake, lifting their combined holding in the bank to 89
per cent.

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

Indonesia's PPA to issue US$49 mln bond to meet yr end budget target

JAKARTA, September 7 (Asia Pulse/Antara) - State-owned asset
management company PT PPA said it will sell a Rp439.26 billion
(US$48.8 million) bond to meet its target to raise Rp2.35 trillion for
the 2006 state budget.

The plan to sell the 10-year bond of state-owned road building company
PT Jasa Marga was intended to take advantage of present good market
conditions to follow a cut in the central bank's reference interest
rate, PPA Secretary Renny O. Rorong said.

The sale of the bond has been in the working plan of the company this
year, but the decision to sell is based on the market conditions,
Renny said.

Jasa Marga issued the bonds early this year to PPA and other creditors
to refinance a debt of Rp522 billion used to build Jakarta Ring Road
project.

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Stock Alert - Indonesia's Bank Panin higher on laggard interest

JAKARTA, September 7 (XFN-ASIA) - PT Bank Panin was higher 
midmorning in heavy trade on bargain-hunting as the stock is viewed 
as having lagged behind most other banks in recent rallies, dealers 
said.

Bank Panin was up 10 rupiah or 2.17 pct at 470 on volume of 36.75 mln shares.

"Investors may have seen the stock as a laggard," said Mulya Chandra,
a banking analyst with state brokerage Danareksa.

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

Indonesian govt to develop telecom network

JAKARTA, September 7 (Asia Pulse/Antara) - The 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, Communication and
Information Minister Sofyan Djalil said here Wednesday.

"We will prepare the tender procedure in the next two weeks," he said
after opening an IndoComtech computer exhibition at the Jakarta
Convention Center.

The fiber optic development project would 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 other telecommunication
operators, he said.

There were many investors who had expressed interest in setting up the
network, the minister said.

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

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

Imported rice to enter Indonesia October 1

Jakarta, September 7 (ANTARA News) - Trade Minister Mari Elka Pangestu
said imported rice will enter Indonesia in stages starting on October
1, 2006 but it was still unknown whether the volume would be in
accordance with the government`s decision ro import 210,000 tons.

"The tender process should have started today. It will take place in
about two to three weeks so it is estimated to have entered Indonesia
early October," Mari told the press before attending a cabinet meeting
led by President Susilo Bambang Yudhoyono at the presidential office
here Thursday.

A tender committee and a supervisory team dealing with the imported
rice had been formed.

In response to certain parties who oppose the plan to import rice, the
minister said the rice bought from abroad was needed for market
operations.

Agriculture Minister Anton Apriyantono said the central government
appreciated some provincial administrations which did not agree to the
plan to import rice.

"If a region rejects rice import, it means the region has no problem
with the procurement of rice," the minister said in response to
several provincial administrations especially in Java that had turned
down rice imports.

The government would not sell the imported rice in Java as the rice
stock in the island was big enough, he said.

He said in 2005 the volume of imported rice was recorded only at
170,000 tons. The figure increased to 247,000 tons in 2004 and reached
five million tons between 1997 and 1998.

On self-sufficiency in rice, Anton said a country would be considered
successful in the matter if 90 percent to 95 percent of the country`s
need for rice was met by domestic production.

The Indonesian government even applied the rate (99 percent) higher
than that of the international standard.

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

Indonesia's PTPN X buys 9,000 T of raw sugar

JAKARTA, September 7 (Reuters) - Indonesian state plantation firm PT
Perkebunan Nusantara X (PTPN X) bought 9,000 tonnes of raw sugar at
$316 a tonne including cost, insurance and freight from trading house
Wee Tiong on Thursday, the company's head of marketing said.

The purchase is part of an import permit for 35,000 tonnes of raw
sugar for delivery by the end of October.

"The raw sugar is expected to enter Surabaya port by the end of
September at the latest," Adi Santoso told Reuters.

Santoso said the company will hold another tender to seek the rest,
but the time is not yet set.

"The imported raw sugar is to fill up the idle capacity in our
factories," he said, adding the firm was aiming to produce 435,000
tonnes of white sugar this year.

Indonesia, Southeast Asia's largest sugar buyer, imports sugar because
demand outstrips production. It is projected to produce 2.48 million
tonnes of white sugar this year, up from 2.24 million tonnes in 2005.

But annual consumption is estimated at 2.6 to 2.7 million tonnes in
2006. Consumption is likely to increase at the end of this month as
the festival season gets under way.

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

Indonesian Govt Revising Sugar Import Tariffs

JAKARTA, September 7 (Dow Jones)--Indonesia's government is rethinking
its import tariffs on sugar and sugar products, to help local refiners
compete for market share, Bisnis Indonesia reported Thursday, citing
officials.

"We are re-drafting (legislation on sugar import tariffs) to create a
balance," Agriculture Minister Anton Apriyantono was quoted as saying,
without elaborating further.

Current import tariffs of around IDR530 a kilogram for raw sugar and
IDR250/kg for white sugar are too low, and are hurting the
competitiveness of local sugar refiners, the report said, quoting Adig
Suwandi, an official from state agricultural concern PT Perkebunan
Nusantara XI.

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

Indonesia's Bakrie reports higher natural rubber output in H1

JAKARTA, September 7 (Asia Pulse/Antara) - PT Bakrie Sumatera
Plantations (JSX:UNSP) produced 10,740 tons of natural rubber in the
first six months of this year, up 23 per cent over the same period
last year.

The increase was due to expansion of plantation area after the
acquisition of 1,600 hectares of cultivated land in Air Muring late
last year.

Plantation productivity also rose 9 per cent to 1,330 tons per
hectare, the company said in a statement.

The increase in production at a time of rising natural rubber prices
pushed up the company's income to Rp101.2 billion (US$11.14 million)
from Rp63.9 billion.

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

Bisnis Indonesia
September 7, 6

BSD to Issue IDR500 Billion Bonds

JAKARTA: PT Bumi Serpong Damai is planning to issue IDR500 billion
bonds with the tenor of five years to support the company's expansion
plan.

An executive involving in the plan said that BSD has appointed PT
Danareksa Sekuritas, PT Sinarmas Sekuritas and Recapital Securities as
the underwriters. Danareksa will become the lead arranger.

"The company will file the plan to the Capital Market and Financial
Institution Supervisory Board (Bapepam LK)," the source told Bisnis
Indonesia yesterday.

He said that the bonds will be issued on the fourth quarter of 2006.
"The market is favorable so that the yield offered to investors will
be optimum."

The President Director of PT Sinarmas Sekuritas Kokaryadi Chandra
confirmed that BSD is planning to issue some bonds.

"We are preparing the bonds issuance. It will be handled by SinarMas
Sekuritas, Danareksa and Recapital," he said.

But he said there has not been any decision on when the bonds will be issued.

The Director of BSD Ignesjz Kemalawarta did not pick up his phone when
Bisnis Indonesia called him.

As of June 30, the outstanding debt of BSD was IDR2.06 trillion
compared to IDR1.62 trillion during the same period of 2005. The total
equity, meanwhile, has increased from IDR1.06 trillion to IDR1.12
trillion.

The property company has belonged to Sinarmas Group.

The company is developing some projects this year, along with some
projects that have been started previously.

Among the new projects are the development of four clusters at the
total of 20 hectares in addition to the development of the 60 hectares
of The Green and 70 hectares of Latinos. Some projects that will be
run this year are Medika BSD Hospital, BSD Junction and Water Park.

Medika BSD Hospital belongs to Kumpulan Perubatan Johor (KPJ)
Healthcare Sdn Bhd, Malaysia, with the total investment of IDR100
billion. The projects of BSD Junction and Water Park, meanwhile,
belong to BSD with the investment of hundreds billion of rupiah.

The decision of Bank Indonesia to cut the interest rate will boost the
bonds market. Some companies such as PT Bank Tabungan Negara, PT Jasa
Marga, PT PNM (IDR300 billion) and Pupuk Kaltim (IDR600 billion) has
planned to issue some bonds.

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

Indonesia's Asuransi Sinar post US$1 mln H1 net profit

JAKARTA, September 7 (Asia Pulse/Antara) - PT Asuransi Sinar Mas
reported Rp818.87 billion (US$90.9 million) in premium income in the
first half of this year, with net profit at Rp10 billion (US$1.1
million), its President Indra Widjaja said.

Indra said fire insurance accounted for the largest portion of the
income with a contribution of 50 per cent, followed by motor vehicle
insurance accounting for 30 per cent and health insurance 20 per cent.

Premium sales are encouraging this year with strong growth especially
in health insurance, he said yesterday.

Last year, its net profit totaled Rp41.77 billion.

Its Risk Based Capital (BC) was 162.05 per cent in June, 2006 down
from 211 per cent by the end of 2005 but was still well safe above the
minimum requirement of 120 per cent.

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Suzuki auto sales continue rising trend in Indonesia

JAKARTA, September 7 (Asia Pulse/Antara) - Sales of Suzuki cars rose
further to a new peak of 4,241 units in August from 4,048 units in the
previous month.

Suzuki car sales has steadily increased since May after falling to
2,748 units in April from 3402 units in March.

Priyo Kurnianto, chief spokesman of PT IMNI , the sales agent for
Suzuki cars in the country, said car market began to improve as
indicated by the sales of Suzuki cars .

Priyo said multipurpose vehicles including Suzuki APV and Carry were
the largest contributors to the Suzuki sales.

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India's TVS Motor to tap Indonesian market in 2-3 years: MD

NEW DELHI, September 7 (Asia Pulse/Antara) - TVS Motor (BSE:532343) on
Thursday said it will come out with an initial public offering (IPO)
in Indonesia in the next 2-3 years to fund expansion plans in the
region.

"We will be tapping the Indonesian market in the next 2-3 years," TVS
Motor Managing Director Venu Srinivasan said on the sidelines of the
Society of Indian Automobile Manufacturers (SIAM) summit.

TVS is currently setting up a manufacturing facility in Indonesia
through which it hopes to cater to the demands of the ASEAN region.

"We are setting up a 300,000 unit capacity in Indonesia, which will
begin production from April next year. Through this we look to cater
not only to the local market but also to other countries like
Thailand, Myanmar, Cambodia, Malaysia and Vietnam," Srinivasan said.

Asked on the reasons for the IPO, he said it would add value to the
company's operations in the country as well as give it recognition as
a local company.

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

Investors build 2 tuna fish processing plant in Indonesia

JAKARTA, September 7 (Asia Pulse/Antara) - Two joint ventures of
foreign and local companies have begun work to build tuna fish
processing plants with a total investment of Rp221.2 billion (US$24.3
million) in Aceh's Sabang and North Sumatra's Bungus.

The two consortium are PT Sinar Pure Food International, a joint
venture between Indonesian and Philippine companies and PT Panca Mitra
Multi Perdana, a joint venture between investors form Indonesia,
Thailand and Singapore.

The two joint ventures are part of nine fishing companies seeking
license to operate including building fish processing factories in the
country.

The government has issued a regulation that foreign fishing companies
are allowed to operate in Indonesian water only if they build fish
processing plants in the country.

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Indonesia's shrimp production likely to be below yr target

JAKARTA, September 7 (Asia Pulse/Antara) - The country's shrimp
production is forecast to be well below the target of 350,000 tons set
by Maritime and Fisheries Ministry for this year.

The production in the first half of the year totaled only 125,000
tons, chairman of the Indonesian Shrimp Commission Shidiq Moeslim
said.

The performance is expected to be even worse in the second half of the
year due to bad weather in several production centers in June through
August, Shidiq said.

"My estimate is that the production will not exceed 270,000 tons this
year," he said Wednesday.

Last year the country produced 300,000 tons of shrimps.

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IFC to provide US$350 mln for SMEs in Indonesia

JAKARTA, Sept 7 Asia Pulse - The International Finance Corp. (IFC)
said it will set aside US$350 million to finance small and medium
enterprises in Indonesia for the year ending July 2007.

IFC's programs are mainly related to SMEs offering technical
assistance involving the banking sector in financing, IFC General
Manager Chris Richards said here Wednesday.

IFC's investment in Indonesia since 2002 is expected to total US$1
billion until June next year, mostly under the Program for Eastern
Indonesia SME Assistance, Richards said.

In the previous year ending July 2005, IFC provided US$167 million to
finance SMEs in the country, up 21 per cent from a year earlier.

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

Business Times (Malaysia)
September 7, 2006

SME to tap Indonesian market

A 40-STRONG Malaysian delegation of food-and healthcare-based small
and medium enterprises (SMEs) leaves for Jakarta today with a mission
to pry open Indonesia's 225 million consumer market.

Organised by the Ministry of Domestic Trade and Consumer Affairs, the
Taste of Malaysia show in Jakarta will showcase SME products and
directly pitch them at 200 potential buyers with 500 types of food
products, including instant beverages, spices, frozen food, cordials,
food seasoning and sauces, snacks and health food and drinks.

The event will run for 14 days beginning September 8, during which the
SMEs will exhibit their products, conduct briefings and hold business
networking sessions with Giant Hypermarket, Indonesia Retail
Association and wholesale dealers.

In a statement, the ministry said the international marketing and
promotion programme is the fourth in a series it has organised to
assist SMEs to tap into global markets spanning Asia, the Middle East
and Europe.

The delegation, also comprising senior ministry officials, State Exco
members and representatives from the Bumiputera Manufacturers and
Service Industry Association of Malaysia and the Malaysian Muslim
Consumers Association, is led by Datuk Shafie Apdal, Minister of
Domestic Trade and Consumer Affairs. "The number of SMEs participating
on each trip is growing as word of success spreads and they realise we
are creating a direct-to-buyer platform to penetrate export markets,"
Shafie said in the statement. He said Indonesia has a vibrant retail
market selling to a population of 225 million and this will present
many opportunities for Malaysian SMEs to break into the world's fourth
most populous market.

To date, the ministry has conducted three Taste of Malaysia shows
overseas covering Singapore, Hong Kong and the United Arab Emirates,
bagging confirmed orders worth RM20 million.

After Jakarta, the show will visit London and Paris next year where 60
SMEs are expected to participate with 300 products.

Next year will also see the SMEs, through Carrefour hypermarket,
penetrate the UK market and from there, extend their reach to
neighbouring countries in the European Union. Promotional programmes
in other Asian countries will also continue.

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Indonesia, Singapore to launch joint investment promotion

JAKARTA, September 7 (Asia Pulse/Antara) - Indonesia and Singapore
plan to launch a joint investment promotion as part of their
cooperation in the development of Special Economic Zones (KEK) in
Batam, Bintan and Karimun.

"We will conduct the promotion in November," coordinating minister for
the economy Boediono said here on Wednesday.

He said the Joint Steering Committee that he chaired jointly with
Singopore's minister of trade and industry Lim Hng Kiang had already
prepared a "road map" of schedules, steps and others.

Boediono and Limg Hng Kiang signed a cooperation agreement on economic
development in Batam, Bintan and Karimun islands in Sumatra last July,
in the presence of Indonesian President Susilo Bambang Yudhoyono and
Singapore's Prime Minister Lee Hsien Loong.

The agreement is aimed at developing special economic zones (KEK) in
the islands and possibly later in other islands in the country.

Following the signing of the agreement, a joint steering committee was
set up and would immediately hold a meeting to discuss action plans
for the implementation of the program.

The action plans will be carried out by a joint working committee
chaired jointly by Indonesian Trade Minister Mari Pangestu and the
chairman of the Singapore Economic Development Board.

The action plans include the settlement of urgent problems facing
investors in the region and improvement in the implementation of
existing policies.

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

The Jakarta Post
September 7, 2007

Korean province shows off products 

Supported by the Korea Trade Investment Promotion Agency (Kotra), 
manufacturers from the South Korean province Gyeonggi launched a three-day expo in 
Jakarta on Wednesday to promote their products to the Indonesian market.

The expo, opened by Indonesian Trade Minister Mari Pangestu (shown in photo 
playing darts as Korean Ambassador to Indonesia Lee Sun Jin looks on), features 
a variety of products. These include information technology products, 
security systems, industrial machines, health equipment, petrol-chemical products, 
electronics and daily goods. 

"We have been doing this kind of promotion in several countries since 2002. 
This year, we have held similar events, one in Chile and in Poland," said 
Gyeonggi Deputy Governor Jung Chang Sub after the official opening of the event, 
which is being held at Shangri-La Hotel. 

Gyeonggi province, located a few kilometers from Seoul, is known as a 
manufacturers of nanotechnology and information technology products. 

According to data from Kotra, the province has seen a total of US$13.7 
billion from foreign investments this year. Gyeonggi's GDP in 2004 was US$131.1 
billion, higher than Malaysia's GDP of $117.8 billion. 

Trade between Korea and Indonesia reached $13.2 billion last year. -- JP 

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Joyo Indonesia News Service
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