[Kabar-indonesia] 22 RI Biz/Econ Reports: Telkom; Growth Target Cut; JSX Down; Jasa Marga; BII

[JoyoNews at aol.com]

22 RI Biz/Econ Reports:

- Indonesian Govt To Replace Telkom Pres 
  In Oct Hldr Mtg
- Indonesian shares end down 0.8% on 
  concerns about weakening rupiah 
- Indonesia Cuts 06 Econ Growth Target 
  To 5.8% Vs 6.2%
- Indonesia approves tollroad firm 
  Jasa Marga's IPO
- Indonesian foreign capital inflows total 
  US$6.66 bln in H1 2006
- Indonesia's PPA still waits for finance 
  minister approval to divest BII stakes
- Indonesia's BNI seeks 150 mln usd 
  syndicated loan to refinance debt - report
- Indonesia's BTN sets coupon of 12.75 pct 
  for 1 trln-rupiah bond issue
- Indonesia's Bank NISP eyes US$50 mln 
  loan from IFC
- Bank Ekspor Indonesia bonds
  oversubscribed
- Indonesia's DPR agrees to revised 2006
  budget deficit forecast
- update: Indonesia's deposit insurance 
  body cuts rupiah deposit rate by 50 bps
- Owners of Indonesia's PT Asuransi to
  sell all shares in company
- Pos Indonesia wants monopoly on letters
  weighing below 500 grams
- Indonesia approves tollroad firm Jasa
  Marga's IPO
- Indonesia alleges smuggling, dumping 
  of Chinese wire rods
- Malaysia's Proven wins contract to build
  trade mall in Indonesia
- Indonesian shrimp exports to US up
  15.2% in Jan-Jul
- Indonesian tuna catch predicted to
  start rising
- Indonesian palm oil prices mixed,
  demand seen firm
- Indonesian envoy to study Australian
  sugarcane farming methods
- Demand for natural rubber gloves strong:
  Malaysian manufacturers

Indonesian Govt To Replace Telkom Pres In Oct Hldr Mtg

JAKARTA, September 12 (Dow Jones)--The Indonesian government plans to
replace the president director of state-owned PT Telekomunikasi
Indonesia (TLKM.JK), Arwin Rasyid, in an extraordinary meeting of
shareholders in October, a senior government official told Dow Jones
Newswires Tuesday.

"We will propose to the meeting to approve the replacement of the
current president of Telkom," said Muhammad Said Didu, secretary to
the minister of state enterprises' affairs. [ 12-09-06 1030GMT ]

Didu said the government wants to replace Rasyid as he is
underperforming. He didn't elaborate.

Rasyid, a former banker, was appointed Telkom's president director on
June 28, 2005.

The government, which owns 51.19% of the company, also plans to
replace one of directors to improve the performance of the nation's
largest telecommunication company by assets, Didu said.

Telkom' board of directors currently has seven members.

Didu also said that the government will propose that the meeting
approve an 2006 interim dividend payment.

He didn't mention the size of the interim dividend.

Telkom's net profit in the January to June period rose 53% on year to
IDR5.82 trillion.

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Indonesian shares end down on 
concerns about weakening rupiah 

JAKARTA, Sept. 12 (AP): Indonesian shares closed lower for the fourth 
consecutive session Tuesday, led by selling in consumer products and 
telecommunications blue chips, amid worries that the rupiah may continue to weaken.

Dealers said losses in other Asian markets also weighed on the market, but 
late bargain buying by local funds lifted the main index from its intraday low.

The Jakarta Stock Exchange Composite index ended down 12.047 points, or 0.8 
percent, at 1,435.207, but off an intraday low of 1,417.239.

The weaker rupiah could increase the debt servicing costs of many companies 
and prevent the central bank from cutting interest rates, analysts said.

Car distributor Astra International closed down 1.7 percent at Rp 11,550, on 
fears it may continue to record poor vehicle sales in the third-quarter, due 
to the relatively high interest rate environment, a trader said, as high 
interest rates may discouragepeople from borrowing to buy vehicles.

Bellwether Telekomunikasi Indonesia retreated 1.9 percent to Rp 7,700, 
regaining ground from an intraday low of Rp 7,650, after its American Depositary 
receipts in New York fell 2.3 percent too US$34.19.

Looking ahead, dealers expect the market to rebound Wednesday after the main 
index retreated almost 3 percent in the previous four sessions. 

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Indonesia Cuts 06 Econ Growth Target To 5.8% Vs 6.2%

JAKARTA, September 12 (Dow Jones)--Indonesia's government and
parliament Tuesday agreed to cut the 2006 economic growth target in
the current budget to 5.8% from 6.2%.

Government officials had in the past said it would be difficult to
achieve the original 6.2% target this year as the economy continues to
suffer from the more than doubling of fuel prices in October last
year.

The government and parliament also agreed to increase the budget
deficit target to IDR40 trillion, or 1.3% of gross domestic product,
from IDR22.4 trillion originally, or 0.7% of GDP.

"The government will continue fiscal consolidation efforts" despite
the rising target, Finance Minister Sri Mulyani Indrawati said in a
speech to parliament members. [ 12-09-06 0740GMT ]

The government increased the spending target to IDR699.1 trillion from
IDR647.6 trillion, as power and agricultural subsidy costs are
expected to rise. The revenue target was raised to IDR659.1 trillion
from IDR625.4 trillion.

The budget's inflation target for the year was kept at 8%, while the
average dollar-rupiah exchange rate was revised to IDR9,300 from
IDR9,900.

The projected average price of Indonesian crude oil was raised to $64
per barrel from $57/bbl, and the crude oil lifting target cut to 1
million b/d from 1.05 million b/d.

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Indonesia approves tollroad firm Jasa Marga's IPO

JAKARTA, September 12 (XFN-ASIA) - State Enterprise Minister Sugiharto
said he has approved the initial public offering plan of the
state-owned tollroad company PT Jasa Marga.

"I have given in-principle approval to Jasa Marga to proceed with its
listing plan," Sugiharto told reporters.

He said the aim of the IPO is to "improve the company's capital
structure and meet its financing needs," and not to raise funds to
help cut the state's budget deficit.

Proceeds from the float will be mainly used to finance three tollroad
projects that are being developed by the company -- Bogor ring-road in
West Java, Semarang in central Java and Gempol-Pasuruan in East Java,
he said.

Asking about the intended size of the IPO, Sugiharto said, "it will
depend on market conditions."

Earlier, Jasa Marga president Frans Sunito said the company is aiming
to generate about 1.5-2 trln rupiah from the offering.

Jasa Marga began the process to select underwriters for the IPO today

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Indonesia swaps 897 bln rupiah govt bonds

JAKARTA, September 12 (Reuters) - An Indonesia auction to swap
short-term rupiah debt for long-term paper got a positive response on
Tuesday, amid anticipation of further interest rate cuts after two
consecutive months of 50 basis point cuts by the central bank.

Foreign investors have been attracted to Indonesian bonds as they
offer one of the highest yields in Asia and prices are expected to
increase as the country has entered a declining interest rate
environment.

The government swapped 897 billion rupiah ($98.35 million) of
Indonesian government bonds maturing between 2007-2009 into 
12-year debt FR0038 through an auction on Tuesday, out of 1.56 
trillion rupiah of incoming bids.

The long term paper was priced to yield 11.64 percent, lower than a
yield of 11.82 percent for the same paper in the previous auction on
August 22.

The auction came after the central bank cut its benchmark rate, known
as the BI rate by 50 basis points last week, as inflation has
gradually subsided from around six year highs.

Bank Indonesia has indicated that the key rate may fall to 10-10.5
percent by the end of this year and could fall further to around 8 to
9 percent by the end of 2007 if inflation continues to decline.

Ratings agencies rate Indonesian bonds below investment grade, or as
junk bonds. Standard & Poor's Ratings Services, for example, rates
long term Indonesian local currency government papers "BB+" -- one
notch below investment grade.

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Indonesian foreign capital inflows total US$6.66 bln in H1 2006

JAKARTA, September 12 (Asia Pulse/Antara) - Foreign capital inflows to
Indonesia totaled Rp60 trillion (US$6.66 billion) in the first half of
this year significantly strengthening the rupiah, a Bank Indonesian
official said.

Deputy Governor of the central bank Hartadi A. Sarwono said the
capital inflows comprised Rp30 trillion to the oil and gas sector,
Rp30 trillion including Rp10 trillion in loans to other sectors.

Earlier, data at the capital investment coordinating board (BKPM)
showed that foreign direct investment not including in the oil and
gas, banking and other financial sectors fell 26.89% to US$3.71
billion in the first seven months of this year.

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Indonesia's PPA still waits for finance 
minister approval to divest BII stakes

JAKARTA, September 12 (XFN-ASIA) - State asset management firm 
PT Perusahaan Pengelola Aset (PPA) said it is still waiting for the
finance minister's approval to sell the government's remaining shares
in Bank International Indonesia.

"We're still waiting for the finance minister's approval to divest our
BII stake," PPA's chairman Mohammad Syahrial told XFN-Asia.

The government still holds 5.53 pct of BII after the PPA sold a 15.25
pct stake for 1.35 trln rupiah in January last year.

Syahrial declined to comment on media reports saying the divestment
will take place this week, noting that the sale may be delayed beyond
the originally envisaged timetable of mid-September because of
unfavorable market conditions.

"The stock market is currently down...(so) the government may wait for
the right moment," he said.

Last Tuesday, PPA sold the government's stake 25.9 pct stake in PT
Bank Permata for 1.76 trln rupiah via a placement exercise.

The PPA is in charge of selling government assets that were taken over
from the private sector following the 1997 financial crisis. Proceeds
of the divestments go to help fund the state budget.

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Indonesia's BNI seeks 150 mln usd 
syndicated loan to refinance debt - report

JAKARTA, September 12 (XFN-ASIA) - State-owned PT Bank Negara
Indonesia (BNI) is seeking a 150 mln usd syndicated loan repayable in
2-3 years to refinance existing debt, Bisnis Indonesia reported,
citing an unnamed source.

The report said BNI has sent a proposal to 12 banks, including HSBC,
DBS, Standard Chartered Bank, ABN Amro and Barclays, for them to take
part in the syndicated loan.

The report also quoted BNI corporate secretary Intan Abdams as saying
that some banks have submitted their proposals to BNI to help finance
the loan.

"We hope that we would have appointed a lead arranger next week,"
Abdams was quoted as saying.

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Indonesia's BTN sets coupon of 12.75 pct for 1 trln-rupiah bond issue

JAKARTA, September 12 (XFN-ASIA) - PT Bank Tabungan Negara (BTN), a
state bank specializing in housing loans, has set a coupon of 12.75
pct for its 1 trln-rupiah issue of 10-year bonds, payable every three
months, BTN said.

It said the bonds would be sold at 100 pct of their nominal value and
that the offer would last from today until Thursday.

BTN has said it will use the proceeds to support expansion of its
lending, which it aims to expand to 5.7 trln rupiah this year.

PT Mandiri Securities and PT Standard Chartered Securities Indonesia
are the underwriters for the issue.

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

Indonesia's Bank NISP eyes US$50 mln loan from IFC

JAKARTA, September 12 (Asia Pulse/Antara) - The management of publicly

listed Bank NISP (JSX:NISP) says it hopes to receive a loan worth
US$50 million from one of its shareholders, International Financial
Corp (IFC), in the next two months.

NISP president Pramukti Surjaudaja said the loan from IFC, which owns
7.17 per cent of the bank, will be used to finance long term credit.

The bank aims to increase its outstanding credit to Rp15 trillion
(US$1.66 billion) by the end of this year from Rp13 trillion at
present.

With an increase of 20 per cent in credit disbursement, the company
hopes to chalk up a proportional rise in income.

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

Bank Ekspor Indonesia bonds oversubscribed

JAKARTA, September 12 (Asia Pulse/Antara) - Bonds valued at Rp500
billion (US$55.5 million) offered by state-owned export bank, Bank
Ekspor Indonesia (BEI), were oversubscribed with demand totaling
Rp1.14 trillion, said a company press release on Monday.

BEI corporate secretary Sunu Widi Purwoko said in the release that the
lowering of Bank Indonesia's reference rate and falling inflation made
the bond more attractive.

Pension funds and insurance companies, foundations and asset
management firms were among the potential prospective buyers, Purwoko
said.

The strong demand indicated high confidence shown by investors in the
bank, which has previously had a good record in the repayment of bond
debt, he said.

The bond fund will be used to strengthen its credit financing
capacity, the bank said earlier.

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Indonesia's DPR agrees to revised 2006 budget deficit forecast

JAKARTA, September 12 (XFN-ASIA) - The Lower House of Parliament (DPR)
has agreed to a government proposal to revise up this year's budget
deficit estimate to 1.3 pct of GDP, or 40 trln rupiah.

The initial forecast was for a deficit of 0.7 pct of GDP, or 22.43 trln.

The move follows higher than initially expected spending for this year.

"Ten (DPR) factions who attended today's session have given their
response and approval," DPR deputy chairman Soetardjo Soerjogoeritno
said.

Soerjogoeritno chaired today's plenary session of the parliament held
to consider the government's revised 2006 budget plans.

Finance Minister Sri Mulyani Indrawati told the plenary session that
budget spending is now expected to reach 699.1 trln rupiah this year,
above its initial estimate of 647.67 trln.

This was was the result of an increase in spending allocations for
education, earthquake reconstruction, subsidies and interest payments.

The DPR's budget commission chief Emir Moeis said the revised budget
assumed GDP growth this year of 5.8 pct, which is slower than the
initial forecast for 6.2 pct.

It also assumed a higher average oil price of 64 usd per barrel
against the initial forecast of 57 usd while crude oil production is
now seen at 1.0 mln barrels per day from 1.05 mln projected
previously.

He said the average exchange rate assumption for the year is now at
9,300 rupiah per US dollar, against the initial forecast of 9,900
while the average interest rate for three month Bank Indonesia
Certificates (SBI) is now seen at 12.0 pct, against the initial
forecast of 9.5 pct.

The assumption for average inflation for the year was kept unchanged
at 8. 0 pct.

Moeis also said among key spending items, the House agreed to raise
fuel and electricity subsidies to 64.21 trln and 35.53 trln,
respectively, against the initial forecasts of 54.28 trln and 15 trln.

He noted that the electricity subsidy will be settled on cash basis
while the rest may be carried over into next year or be paid by the
end of this year.

He said the subsidized fuel quota for the year was set at 37.9 mln
kiloliters. This is the maximum amount of fuel products that can be
subsidized by the government, allowing them to be sold below
commercial prices.

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Indonesia's deposit insurance body cuts rupiah deposit rate by 50 bps

JAKARTA, September 12 (XFN-ASIA) - The government-run deposit
insurance body, which guarantees bank deposits, says it has cut its
maximum rupiah deposit rate by 50 basis points to 11.25 pct for Sept
15-Oct 14.

The special rate for people's credit banks has been cut by 50 basis
points to 15.25 pct, the deposit insurance body says in a written
statement.

These cuts follow Bank Indonesia's announcement last Tuesday that it
had reduced its policy rate by 50 basis points to 11.25 pct.

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

Owners of Indonesia's PT Asuransi to sell all shares in company

JAKARTA, September 12 (Asia Pulse/Antara) - The owners of PT Asuransi
Ganesha Danamas have decided to sell all shares in the general
insurance company, which has been suspended from operating since 2003.

Company president Dwi Enggo Pudjianto said the funds from the sale
will be used to pay obligations in insurance claims and other debts of
the company.

Pudjianto said an investor has agreed to buy the assets, but refused
to give a name before the final deal was signed.

Based on its financial report, the company possessed assets valued at
Rp4.41 billion (US$483,992) with debt totaling Rp328.98 million in
insurance claims and Rp882.14 million in reinsurance obligations.

The company was among a number of insurance firms suspended in 2003 by
the finance ministry for failure to meet the minimum Risk Based
Capital of 120 per cent.

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Pos Indonesia wants monopoly on letters weighing below 500 grams

JAKARTA, September 12 (Asia Pulse/Antara) - President director of
state postal service company PT Pos Indonesia Hana Suryana said the
draft law on postal affairs to be discussed in the House of
Representatives should include a clause on PT Pos Indonesia's monopoly
on the conveyance of letters weighing less than 500 grams.

"If we are given the right under the law, we hope it will be enforced
seriously," Hana said at a hearing with the House of Representatives
(DPR) Commission I here Monday.

The hearing was marked by a debate on whether or not the government
should give PT Pos Indonesia a monopoly on certain types of mail.

Several members of Commission I opined that PT Pos Indonesia should be
given a monopoly as the company had to serve the public anywhere in
the country whereas private postal companies were unwilling to operate
in remote areas.

The rest of the commission members forwarded the view that a monopoly
should be given to PT Pos Indonesia proportionally.

If monopoly was given excessively, PT Pos Indonesia would be spoiled
and unable to compete in the current globalization era, a member of
Commission I, Boy Saul, said.

Hana said no monopoly should be given to PT Pos Indonesia excessively.

"We only ask for a monopoly on the handling of letters weighing less
than 500 grams. PT Pos Indonesia has so far suffered losses as it
should provide cross-subsidies to services in remote areas but we gain
profit from our services in big cities," Hana said.

Currently, according to Hana, many delivery firms did not provide
professional services to the public, especially to remote areas.

"Those delivery firms trust PT Pos Indonesia to continue their
deliveries to villages," Hana said.

The president director of the state postal service said that the
people should be aware that it was only PT Pos Indonesia which had
delivery networks up to rural areas.

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Indonesia alleges smuggling, dumping of Chinese wire rods

JAKARTA, September 12 (Asia Pulse/Antara) - Chinese wire rod products
have become targets of allegations of smuggling and dumping in
Indonesia as they have been sold at prices far below prevailing
international prices.

Chinese wire rod products are sold at US$200-US$300 a ton in
Indonesia, as against the prevailing prices of US$800-US$1,000 in
international market, an official said.

Metal, Machine, Textile and Multifarious Industries Director General
Ansari Bukhari said the government will investigate the allegation.

"We suspect that illegal imports of wire rod are substantial in volume
as half of the country's annual requirement of around 11,000 tons are
imported," Ansari said yesterday.

He said domestic producers have filed a petition and demanded the
industry ministry and other related agencies to hold investigations.

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Malaysia's Proven wins contract to build trade mall in Indonesia

JAKARTA, September 12 (Asia Pulse/Antara) - Proven Holding Malaysia
has been awarded a contract to build a trade mall in Ciledug,
Tangerang, with an investment of up to Rp300 billion (US$33.3
million).

The Malaysian company has taken over the job from a previous
contractor to build the project to be completed in July, 2007, Project
owner PT Sari Indah Lestari said.

The old contractor has agreed to become a subcontractor under Proven,
Gustamira Bahar, a director of Sari Indah, said.

Bahar said 2,400 kiosks and 400 units of house office and house shop
will be built in the Commercial Business District of Ciledug.

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Indonesian shrimp exports to US up 15.2% in Jan-Jul

JAKARTA, September 12 (Asia Pulse/Antara) - Indonesia's exports of
shrimps to the United States rose 15.2 per cent to 38,229 tons valued
at US$268 million in the first seven months of this year over the same
period last year.

The United States is the largest buyer of shrimp from Indonesia.

Deputy chairman of the association of fishery companies (Gapindo)
Johannes Kitono said on Monday demand for Indonesian shrimp has tended
to increase from the United States especially after anti dumping
surcharge slapped on other major suppliers.

In 2004, the United States imposed anti dumping import duties on
shrimps from China, Thailand, and four other large suppliers.

Meanwhile, a senior official of he maritime and fisheries ministry
Victor NikiJuluw said the country's production of shrimp in the second
half of his will decline as the weather is not conducive for shrimp
breeding from July to September.

Good harvest in shrimp farming is in the first half of year, Victor said.

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Indonesian tuna catch predicted to start rising

JAKARTA, September 12 (Asia Pulse/Antara) - Indonesia's monthly tuna
fish catch is forecast to rise to 15,000 tons in the remaining months
of this year after sharp fall in previous months of this year.

Many fishing vessels lying idle following the fuel price hikes late
last year have resumed operations, the tuna fishing association
(Astuin) said.

Earlier this year production plunged 75 per cent to a monthly average
of 3,286 tons as many fishermen decided to stop operations because of
the soaring prices of oil fuels.

The production in the rest of this year is expected to even exceed
monthly average of 13,145 tons in 2005.

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Indonesian palm oil prices mixed, demand seen firm

JAKARTA, September 12 (Reuters) - Indonesian palm oil prices were
mixed in thin trade on Tuesday, but demand is expected to gradually
improve as the Muslim holy month of Ramadan begins at the end of the
month.

In North Sumatra's Medan, the main port for palm oil exports, crude
palm oil was traded lower at between 4,210 and 4,220 rupiah
($0.462-$0.463) per kg, compared with 4,268 rupiah on Friday. There
was no auction in Medan on Monday.

"Bearish data in Malaysia has made prices fall further," a trader in
Medan said, adding some 1,000 tonnes of crude palm oil changed hands.

The Malaysian Palm Oil Board said output of crude palm oil in the
world's largest producer of the commodity was 1,537,236 tonnes in
August, up 11.79 percent from July.

Production in August 2005 was 1,362,777 tonnes.

Exports of Malaysian oil palm products for the first 10 days of
September were down 22.2 percent from the Aug. 1-10 period.

At the state marketing centre in Jakarta, crude palm oil was
marginally lower at 4,198 rupiah per kg, compared with 4,200 rupiah on
Monday, with some 2,000 tonnes of crude palm oil sold.

The Muslim holy month of Ramadan and Eid al-Fitr are likely to push up
demand, the trader said.

"Demand usually starts to pick up in the second week of Ramadan all
the way to Eid al-Fitr at the end of October," the Medan-based trader
said.

"But, it's hard to see how this will affect prices as they will also
depend on stocks and supplies."

In Jakarta, olein was traded higher at 4,775 rupiah per kg, compared
with 4,725 rupiah on Monday with some 100 tonnes of cooking oil
changing hands, a Jakarta-based trader said.

Weak trading interest put presure on the exports front, with offers
for September shipment at $430 a tonne and bids seen at $425.

October shipments were offered at $425 a tonne, while bids stood at $420.

"More attractive local prices have made sellers change direction to
the local market," another trader in Jakarta said.

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Indonesian envoy to study Australian sugarcane farming methods

JAKARTA, September 12 (Asia Pulse/Antara) - State-owned agro-industry
company PT Rajawali Nusantara Indonesia (RNI) has sent a delegation
made up of 20 sugarcane farmers to Australia under a cooperation
arrangement with Queensland Sugar Limited, a spokesman said.

The delegation - led by Lestijono, finance director of sugar mill
company PT Pabrik Gula Rajawali II - left Jakarta for Australia on
Friday and will be there for a week.

RNI is hoping the farmers can learn from Australia which had succeded
in increasig its sugar cane yield of 95 tons per hectare with the
sucrose content of its sugar cane crop averaging 14.8 per cent.

The farmers are scheduled to visit QSL management and the Sugar
Research Institute, Bureau of Sugar Experiment Stations and to share
their experiences with their counterparts in Brisbane.

PT RNI and QSL have already forged an agreement to increase sugar cane
productivity in Indonesia last month.

RNI has 10 sugar mills in West Java, Yogyakarta, East Java and North
Sulawesi producing 400,000 tons per year.

Meanwhile, sugarcane mills in Australia are to be found mostly in
Queensland, which produces 4.8 million tons per year, Melbourne
(250,000 tons per year) and Perth (50,000 tons per year).

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Demand for natural rubber gloves strong: Malaysian manufacturers

KUALA LUMPUR, September 12 (AFP) -- Malaysian rubber glove makers said
Tuesday that demand for natural latex gloves remained strong because
of global concerns over bird flu and other life-threatening diseases.

President of the Malaysian Rubber Glove Manufacturers' Association,
Oon Kim Hung, said global demand was growing 10 percent annually and
current world usage was at some 120 billion pieces, the state Bernama
news agency reported.

"(The) ntural rubber latex glove has now become the essential item not
only for the medical and dental industries, but also for many other
industries such as food, household consumable products and those
hygiene-related," he was quoted as saying.

Oon said Malaysia currently held over 60 percent of the market but
expressed concerns about the recent volatility in natural rubber
prices.

"We are not happy with current latex price volatility. We would like
to see stability in the raw material price," he said.

Malaysia on Monday called for rubber prices to be stabilised after
recent fluctuations.

Rubber prices have dropped in the last few months from a June high of
8.52 ringgit (2.43 dollars) per kilogram (2.2 pounds) to 6.49 ringgit
in September.

Thailand, Indonesia and Malaysia account for some 80 percent of the
world's natural rubber output.

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Joyo Indonesia News Service
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