[Kabar-indonesia] 23 RI Biz/Econ Reports: Top US Execs Back Anti-Graft Efforts; BI/Easing Policy

[JoyoNews at aol.com]

23 RI Biz/Econ Reports: 

- US businessmen lend support 
  to Indonesian anti-corruption efforts
- Indonesia's KPK, World Bank hold
  meeting on corruption
- Bank Indonesia Dep Gov: IDR 
  Fall Won't Stop Easing Policy
- Indonesia Shares End Lower, 
  Tracking Regional Weakeness
- Indonesia Rupiah Ends Higher 
  On Pft-Taking Against Dollar
- Foreign investors hold 7 bln usd 
  worth of RI T-bonds, SBIs - report
- Poor local harvests prompt spike 
  in Indonesia's corn imports
- Indonesia sells 125 bln rupiah worth 
  of T-bonds at avg yield of 11.30006 pct
- JP: PT Dirgantara Indonesia (PTDI)
  signs contracts worth US$13.6 million
- Bk Indonesia Gov: China's ICBC 
  Seeking Local Acquisition
- 70-80 Total Banks By 2010 -
  Ctrl Bk Gov
- Stock alert - Indonesia's Bank 
  Mandiri lower; frustration at 
  delays to rule change
- Special team to handle sale 
  of 3 Bank Indonesia subsidiaries
- Dow Jones: China Policy May 
  Cool Profits [S&P Cites Tightening
  By Beijing as Having Effects at 
  Major Firms
- Indonesia's Kalbe Farma takes 
  45 pct in unit of Australia's CyGenics
- Bakrie Sumatera Eyes To Sell USD
  Bond Early Oct - Source
- Indonesia's Bakrie Sumatra to start 
  road show for its notes in 'immediate 
  future'
- Indonesia to cut back tariffs on
  dry chili imports from China
- Indonesian crude palm oil steady
  on demand
- Govt urged to seek lifting of EU 
  tariff on Indonesian cacao
- Interview-Asia's rubber output 
  seen up nearly 5 pct in 2006
- Malaysia still needs Indonesian
  workers: Envoy
- S. Korean paper firms seek 
  continued tariffs on paper imports

US businessmen lend support 
to Indonesian anti-corruption efforts

WASHINGTON, September 25 (Asia Pulse/Antara) - Top US businessmen 
came together in the US-ASEAN Business Council (US-ABC) in Washington 
on Monday to express support for the Indonesian government's efforts to
eradicate corruption.

US-ABC president Matthew P Daley conveyed the support in a meeting
with visiting Indonesian vice president Jusuf Kalla at the
Ritz-Carlton Hotel.

Also attending the meeting were Indonesian minister of trade Marie
Pangestu, minister of energy and mineral resources Purnomo
Yusgiantoro, head of the Capital Investment Coordinating Board, M
Lutfi, chairman of the Indonesian Chamber of Commerce and Industry MS
Hidayat and Indonesian ambassador to the US Sudjadnan
Parnohadiningrat.

In response, Kalla expressed appreciation for the support saying an
anti-corrupton campaign was in a full swing in Indonesia.

He said that unlike any other country in the world, in Indonesia, a
number of provincial governors, former ministers, even generals and
parliament members had been jailed for corruption.

The chairman of the US-Indonesia Business Council, Robert W Haines
asked the Indonesian government to continue to increase development of
infrastructure and security so that US investors could invest in the
country without fear of foul play.

In reply Kalla assured the chairman that Indonesia was secure for
investment and said there has never been a controlled situation over
the past 20 years like there is now.

"Soldiers stay in barracks. None of them are leaving for Aceh, Maluku
or Papua because there were no more conflicts there. The East Timor
case has also been settled. Aceh is already peaceful. The situation is
very safe now," he said.

To describe how secure Indonesia is he said that Indonesia was ready
to take part in peace keeping efforts in the Middle East on the first
day Israel attacked Lebanon.

"Even before the UN gives an order to TNI (defense forces) to leave
for Lebanon, the military has started painting its armoured vehicles
and is ready to help maintain security in Lebanon because there is no
security threat in the country," he said drawing an applause from the
audience.

He said the TNI had no coup tradition. "In Thailand a coup often
happens but in Indonesia its soldiers never resorted to such an
action," he said.

To further improve the investment climate the vice president said the
Indonesian governemnt continued making improvements in, amongst
others, the taxation, labor and investment sectors.

The US-ABC is a business association bridging communication between US
businesses and the 10 members of the Assocation of Southeast Nations
including Indonesia.

Members of the association include not only oil giants such as
Chevron, ConocoPhillips, Freeport McMoran and ExxonMobil but also car
and heavy equipment industries, accountancy and consultancy companies
and others.

The chairman of the US-ABC board of directors is Martin J Sullivan who
is also the CEO of the AIG which is a company operating in the
financial services industry.

The council has always organized dialogues with heads of state,
ministers and government officials from ASEAN countries while on
visits to the US.

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

Indonesia's KPK, World Bank hold meeting on corruption

JAKARTA, September 26 (Asia Pulse/Antara) - Corruption Eradication
Commission (KPK) officials held a closed-door meeting with World Bank
auditors and investigators on alleged corrupt practices in WB-financed
projects in Indonesia, an official said.

"Topics discussed at the closed-door meeting and its results cannot be
made public," KPK chairman Taufiequrrahman Ruki said after the signing
of an MOU between KPK and the Supreme Audit Board (BPK) here Monday.

The World Bank had found alleged corruption in a consultative service
procurement for a US$4.9 million-road project in 2001.

The World Bank had therefore asked Indonesia to return the development fund.

However, the Indonesian government pointed out that there were no
irregularities in the World Bank-funded project, and that therefore
there was no money to be returned.

Indonesian Finance Minister Sri Mulyani said the fund allocated for
the road construction project in 2001 was a grant from Japan.

"The procurement was done appropriately, but later there was a report
that a project committee member who was also a civil servant, had
received an illegal fee from the project," she said.

"The government has asked KPK and the Financial and Development
Supervisory Body (BPKP) to probe into the alleged corruption case,"
she said.

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Bank Indonesia Dep Gov: IDR Fall Won't Stop Easing Policy

JAKARTA, September 26 (Dow Jones)--The recent weakening of the rupiah
to a two-month low won't restrict the central bank from continuing to
ease its monetary stance as long as inflation keeps slowing, Bank
Indonesia's senior deputy governor Miranda Gultom said Tuesday.

'If the rupiah...starts to weaken, that's all right. There's nothing
to worry about,' Gultom told reporters.

She said the rupiah's slide isn't due to capital outflows, but rather
because of the general weakening of regional currencies.

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

Indonesia Shares End Lower, Tracking Regional Weakeness

JAKARTA, September 26 (Dow Jones)--Indonesian shares ended lower
Tuesday as market participants tracked weak regional indexes, led by
Japan's Nikkei, traders said.

Traders said normal end-of-month dollar purchases by domestic
corporates to service foreign debt obligations also weighed on the
index.

"The combination of a weaker rupiah and soft regional markets pushed
the index down," a trader said.

The Jakarta Stock Exchange Composite index ended down 6.651 points, 
or 0.44% at 15000.105.

Decliners led gainers 70 to 34 with 86 issues unchanged, on volume of
1.3 billion shares valued at IDR1.4 trillion, compared with 1.3
billion shares valued at IDR1.2 trillion on Monday.

Bellwether Telekomunikasi Indonesia ended flat at IDR8,150, while
rival Indosat slipped 0.5% to IDR4,900.

Blue chip automobile manufacturer Astra International retreated 0.4%
to IDR12,550.

Weak sentiment prompted market participants to sell bank sector
shares, which gained last week on expectations of a cut in the
benchmark Bank Indonesia one-month rate on October 5.

Heavyweight Bank Mandiri slid 2.2% to IDR2,250, while Bank Central
Asia, Indonesia's second-largest bank by assets, dropped 2.5% to end
at IDR4,800.

Cigarette producer Gudang Garam (GGRM.JK) bucked the market trend,
ending up 1% at IDR10,000, despite news Tuesday that the government
will hike cigarette excise taxes or retail prices in early 2007.

"Gudang Garam shares weren't hurt because there is talk in the market
that the company is going to roll out new products that will help
boost their market share," a trader said.

Traders said a likely rally in the Nikkei on the appointment of new
Japanese Prime Minister Shinzo Abe's cabinet would help push shares
higher Wednesday.

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Indonesia Rupiah Ends Higher On Pft-Taking Against Dollar

JAKARTA, September 26 (Dow Jones)--The Indonesian rupiah ended 
higher Tuesday as market participants took profit on the dollar's recent
rally, dealers said.

"Foreign banks followed local banks' moves to sell the dollar at
around IDR9,240," a dealers said. "Market participants sold the
greenback after it found solid resistance at IDR9,250 earlier today."

The dollar closed at IDR9,205, down from its close Monday at IDR9,245.

Demand for the dollar surfaced late last week as sentiment toward
Latin American markets turned bearish.

Bank Indonesia Senior Deputy Governor Miranda Gultom told reporters
the rupiah's recent weakness was not due to a reversal in capital
inflows, but to contagion from other markets.

Hence, rupiah weakening won't deter Bank Indonesia from easing its
monetary policy stance as inflation continues to ebb, Gultom told
reporters.

Dealers said month-end demand will likely support the U.S. unit at
IDR9,200 Wednesday. Whereas, IDR9,250 should remain as a strong
resistance, they added.

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

Foreign investors hold 7 bln usd worth of Indonesia T-bonds, SBIs - report

JAKARTA, September 26 (XFN-ASIA) - Foreign investors currently hold 
7 bln usd worth of treasury bonds and Bank Indonesia Certificates (SBIs),
Bisnis Indonesia reported, citing Bank Indonesia deputy governor
Aslim Tadjuddin.

Tadjuddin said of this amount, treasury bond purchases by foreign
investors have so far amounted to 56 trln rupiah or about 6 bln usd.

Foreign investors have been attracted to Indonesian debt paper due to
the large interest rate differential between US and domestic rates.

The central bank's key policy rate, called the BI rate, is currently
at 11.25 pct and Bank Indonesia has signalled that it may cut the rate
further next month if inflation remains at low levels this month.

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

Poor local harvests prompt spike in Indonesia's corn imports

JAKARTA, September 26 (Asia Pulse/Antara) - Harvest failure will force
Indonesia to increase its imports of corn to an estimated 1.6 million
tons this year, a four fold increase from the 400,000 tons logged last
year.

Bad weather is to blame for the fall in production fall this year,
according to the Association of Animal Feed Producers (GPMT).

Association chairman Budiarto Soebijanto said corn imports for the
first nine months this year had already reached 1.1 million tons,
eclipsing imports volumes for the whole of last year.

Production fell sharply at a time when prices on the world market were
surging, moving from US$150 per ton to US$160, Budiarto said.

The price hike was believed to have resulted from the use of corn for
ethanol production amid spiralling world oil prices.

The United States, the world's largest producer of corn, said demand
for corn from its local ethanol industry has grown by 35 per cent this
year.

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

Indonesia sells 125 bln rupiah worth of T-bonds at avg yield of 11.30006 pct

JAKARTA, September 26 (XFN-ASIA) - The Ministry of Finance sold 125
bln rupiah worth of treasury bonds at its regular debt auction with
the weighted average yield coming in at 11.3 pct, MoF treasury
director Mulia Nasution said.

The paper sold comes from the reopening of an earlier bond series, the
FR0040, which matures in 2025 and carries a coupon of 11.0 pct. It
replaces two older T-bond series that were to mature in 2007 and 2009,
he said.

"Bids were small because the market is bearish," Nasution told
reporters, noting that the bids totaled just 300 bln rupiah.

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

The Jakarta Post
September 26, 2006

PTDI signs contracts worth Rp 125.4 b 

State-owned aerospace firm PT Dirgantara Indonesia (PTDI) has signed three 
new contracts with the Defense Ministry for the supply of one aircraft and three 
helicopters to the Navy and Army. 

The company said Monday that the contracts, worth up to Rp 125.4 billion 
(about US$13.6 million), were for the supply of a NC212-200 aircraft, two 
NBO-105 helicopters and a NBELL-412 helicopter to the Defense Ministry. 

PTDI is the only aircraft manufacturer in Southeast Asia. First established 
in 1976 under the name PT Industry Pesawat Terbang Nurtanio, its name was 
changed to PT Industri Pesawat Terbang Nusantara in 1985 before it finally became 
PTDI in the late 1990s. 

After some restructuring and reform program, the name finally changes to PTDI 
in 2000. 

PTDI not only produce airplane but also helicopters and weapons. -- JP 

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

Bk Indonesia Gov: China's ICBC Seeking Local Acquisition

JAKARTA, September 26 (Dow Jones)--State-owned Industrial 
& Commercial Bank of China (ICBC.YY) is seeking to enter
Indonesia's bank sector through a local acquisition, Bank 
Indonesia Governor Burhanuddin Abdullah said Tuesday.

The chief executive of ICBC, China's largest lender by assets,
confirmed last week at the International Monetary Fund/World Bank
meetings in Singapore that it is seeking a stake in a local bank,
Abdullah told reporters.

"They say that have already signed a memorandum of understanding with
one bank here (in Indonesia)," he said, without providing any details
about the identity of the local bank, the size of the possible stake,
or the timing of any possible stake purchase. [ 26-09-06 0557GMT ]

Xie Taifeng, a spokesman for ICBC in Beijing, declined to comment on
any possible acquisition in Indonesia.

If ICBC does go ahead with the acquisition of a stake in an Indonesian
bank, it would reflect growing foreign interest in the domestic bank
sector which has rebounded from the disaster of the 1997-98 Asian
financial crisis.

The sector almost collapsed under the weight of huge nonperforming
loan portfolios at the height of the crisis.

But a massive government bailout and the implementation of strict risk
management systems have improved the balance sheets of most banks and
attracted the interest of foreign investors looking for access to
Southeast Asia's largest market.

In July, Netherlands-based Rabobank (RBK.YY) bought two small unlisted
lenders, Bank Haga and Bank Hagakita, as a platform to grow the Dutch
bank's food and agribusiness lending portfolio.

Foreign purchases of multiple domestic banks dovetail with Bank
Indonesia's efforts to promote consolidation in a sector in which more
than 130 banks compete for market share.

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70-80 Total Banks By 2010 - Ctrl Bk Gov

JAKARTA, September 26 (Dow Jones)--Bank Indonesia expects the number
of banks in the country to shrink to a total of between 70 and 80 by
2010 from around 130 currently, Bisnis Indonesia reported Tuesday.

The newspaper quoted Bank Indonesia Governor Burhanuddin Abdullah as
saying that around 50 banks are currently facing difficulties in
raising capital and are expected to merge or be acquired by larger
institutions.

The governor was quoted as saying many foreign investors, such as
Industrial and Commercial Bank Of China (ICBC.YY), are looking to
acquire local banks.

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Stock alert - Indonesia's Bank Mandiri lower; frustration at delays to
rule change

JAKARTA (XFN-ASIA) - State-run PT Bank Mandiri was lower as investors
took profits, partly as a result of frustration over a prolonged delay
to a planned amendment to government rules on state companies' debt
management, dealers said.

The stock was down 75 rupiah or 3.26 pct at 2,225.

"I think people sold Bank Mandiri partly because they have been
waiting too long now for the outcome of the revision," a dealer with a
local brokerage said.

The government has proposed to revise existing rules to allow state
banks to offer a debt haircut, in order to speed up the disposal of
their non-performing loans. But the amendment has yet to be approved
and enacted.

Mulya Chandra, a banking analyst with state owned brokerage Danareksa
said his year-end target price for the stock is 2,750 rupiah but this
will only be achieved if the revision to bank regulations is brought
into affect.

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Special team to handle sale of 3 Bank Indonesia subsidiaries

JAKARTA, September 26 (Asia Pulse/Antara) - Bank Indonesia and the
government have agreed to set up a special team to handle the
divestment of three subsidiaries of the central bank.

Deputy Governor of Bank Indonesia Aslim Tadjuddin said divestment of
PT Askrindo, BPUI and NV Indover Bank are expected to be completed
early next year.

Divestment of the subsidiaries is based on a law issued in 1999
banning the central bank to have commercial business units.

Tadjuddin said the slow progress made in the process of divestment is
caused by a number of issues such as problems involving the assets of
Indover, etc.

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Dow Jones Newswires
September 27, 2006

China Policy May Cool Profits

S&P Cites Tightening
By Beijing as Having
Effects at Major Firms

By J.R. WU

BEIJING -- Earnings growth of China's top companies is likely to slow in 2007 
because of the effects of government tightening measures, including the 
continuing, but gradual, appreciation of the yuan, Standard & Poor's Corp. said 
yesterday.

China's largest companies are on track for another solid earnings year in 
2006, but profit growth is likely to slow next year, according to the S&P report 
for 2005 -- China's Leading Corporates: The Top 200 Performers -- issued 
yesterday.

"The Chinese government's market-cooling measures, overcapacity, and high 
raw-material costs have started to bite," S&P said in the report.

An upshot of the anticipated earnings slowdown will be consolidation and 
overseas expansion of China's companies to try to counter margin pressure, said 
John Bailey, managing director of corporate and infrastructure ratings in Asia 
for S&P, at a briefing in Beijing.

"Overall earnings rose 20.8% in 2005, compared with significantly higher 
growth of 46.5% in 2004," the ratings company said in the report.

Without the strong performances of China Petroleum & Chemical Corp., 
PetroChina Co. and China Mobile Ltd., the top three corporations in terms of 2005 
sales, the deceleration in earnings growth would have been more pronounced, or 
down to 15% growth last year from around 50% in 2004, Mr. Bailey said.

Oil and gas companies have helped to boost overall earnings-growth rates 
because of higher international oil and commodity prices, he said.

But earnings next year will still likely be solid, said Mr. Bailey, adding 
that financial ratios for the strongest firms should still stay reasonably sound.

The yuan will maintain its appreciation trend, but it will be gradual and not 
as quick as some might hope for, while the impact of the local currency's 
rise will be mixed depending on the sector, S&P analysts said.

While overheating isn't widespread in China, export growth, an important 
source of China's economic growth, could be hurt if the U.S. economy slows 
significantly, S&P said.

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

Indonesa's Kalbe Farma takes 45 pct in unit of Australia's CyGenics

SYDNEY, September 26 (XFN-ASIA) - Biotechnology company CyGenics Ltd,
which stores human umbilical cord blood, said Indonesia's leading
pharma company, Kalbe Farma, has taken a 49 pct stake in its cord
blood banking subsidiary, CordLife Indonesia.

It did not specify the financial terms but said the deal will
strengthens its presence in the Asian region.

'The expansion of the Indonesian operations is in line with CyGenics'
focus on revenue generating cord blood banking services and on
establishing a sound presence in all major markets in the Asian
region,' the Melbourne-based company said in a statement.

Kalbe Farma is the largest publicly-listed pharmaceutical company in
south-east Asia, with a market capitalization of about 1.5 bln usd and
600 mln usd in annual revenue in 2005.

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Bakrie Sumatera Eyes To Sell USD Bond Early Oct - Source

SINGAPORE, September 26 (Dow Jones)--Indonesia's PT Bakrie Sumatera
Plantations (UNSP.JK) is looking to sell $110 million worth of
five-year senior secured notes in the international debt market in the
first week of October, a company source said Tuesday.

The bond, to be issued by Bakrie Sumatera's wholly-owned unit BSP
Finance B.V., will be lead managed by boutique firm Jefferies,
together with Indonesian finance company Dana Tama Makmur, the source
familiar with the plan said.

Moody's rates the proposed deal B2, while Standard & Poor's has
assigned a B rating.

The company, which operates rubber and oil palm plantations, will use

the proceeds from the bond to finance its capital expenditure program.

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Indonesia's Bakrie Sumatra to start roadshow for its notes in 'immediate 
future'

JAKARTA, September 26 (XFN-ASIA) - PT Bakrie Sumatra will begin its
roadshow for a planned 110 mln usd senior secured notes issue "in the
immediate future," corporate secretary Fitri Barnas said in a letter
to the Jakarta Stock Exchange.

The letter did not disclose the actual date for the roadshow launch.

Barnas said the firm has appointed Jefferies & Company Inc and PT
Danatama Makmur as the joint lead managers for the issue. The paper
will be listed on the Singapore Exchange Securities market.

Earlier, Standard & Poor's Ratings Services said it was assigning a
"B" rating to the notes, subject to final documentation.

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

Indonesia to cut back tariffs on dry chili imports from China

JAKARTA, September 26 (Asia Pulse/Antara) - Indonesia has announced
plans to reduce the import duty on dry chili from China as
compensation for the nation's abolition of import tariffs on
Indonesian cacao.

China has purchased one of the largest shares of Indonesia's US$506
million in cacao exports in the first half of this year, an industry
that comprises 1.17 per cent of the country's total exports.

Director general for international trade cooperation Herry Soetanto
said the import duty agreement was part of the recent ASEAN-Chinese
trade agreements.

Soetanto said the agreement benefits Indonesia as China is a potential
market for cacao, even though Indonesia has to reduce the import duty
on dry chili from that country.

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Indonesian crude palm oil steady on demand

JAKARTA, September 26 (Reuters) - Indonesian crude palm oil prices
were firmer on Tuesday supported as buyers returned to the market to
replenish stocks for the holy month of Ramadan.

In North Sumatra's Medan, the main port for palm oil exports, crude
palm oil traded 4,131 rupiah ($0.449) per kg, compared with 4,120
rupiah on Thursday.

There was no auction in Medan on Monday and Friday.

Players started to enter the market after staying on the sidelines for
some time due to unstable prices in Malaysian crude palm oil futures
in the past week, traders said.

"The market was active today, as local refineries returned to the
market seeking more crude palm oil," said a dealer in Medan, adding
that 2,250 tonnes had changed hands.

"Demand and a rebound in Malaysia have supported prices."

Indonesia is the world's most populous Muslim nation. During the
Muslim fasting month of Ramadan more oil is used to cook for evening
feasts when followers break their fasts.

By the midday break, the benchmark third-month December
<KPOZ6><0#KPO:> contract on the Bursa Malaysia Derivatives exchange
was up 16 ringgit to 1,522 ringgit ($414) a tonne and later closed at
1,521 ringgit in the evening.

On the exports front, sellers offered October shipments at $420 a
tonne free on board Belawan port, with bids seen at $415.

November and December shipments were offered at $422.5 a tonne, while
bids stood at $417.5.

There was no crude palm oil auction at the state marketing centre.

In Jakarta, RBD palm olein prices quoted at between 4,625 and 4,650
rupiah per kg compared with 4,650-4,675 rupiah on Monday.

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Govt urged to seek lifting of EU tariff on Indonesian cacao

JAKARTA, September 26 (Asia Pulse/Antara) - The association of cacao
industry (AIKI) is urging the government to intensify efforts to
persuade the European Union to remove its tariff against Indonesian
cacao products.

The EU, which imposes no import duty on cacao products from Africa,
Caribbean and Pacific countries, still slaps a 4.8 per cent import
duty on the same commodities from Indonesia.

The government has already succeeded in lobbying China into abolishing
import duty on cacao products from Indonesia.

AIKI chairman Piter Jasman said Indonesia could more than double cacao
exports to 100,000 tons a year to the EU if the restriction is
removed.

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Interview-Asia's rubber output seen up nearly 5 pct in 2006

By Naveen Thukral

KUALA LUMPUR, September 26 (Reuters) - Natural rubber output from main
producers Thailand, Indonesia and Malaysia is likely to increase 4.8
percent in 2006 because of good weather and better prices, a senior
industry official said on Tuesday.

The three nations, which account for around 70 percent of global
production, will churn out 6.6 million tonnes of rubber this year from
6.3 million tonnes in 2005, said Quah Swee Kheng, secretary general of
ASEAN Rubber Business Council

"People are beginning to tap plantations which were left untapped
because of higher prices. Weather has also been very helpful," he told
Reuters in an interview.

The price of natural rubber has risen more than 300 percent since 2001
and the three main producers are cashing in on soaring demand,
especially from China, said dealers.

Thailand, the world's largest producer, is likely to produce around
3.0 million tonnes in 2006 from from 2.937 tonnes a year ago, said
Quah.

Neighbouring Indonesia will produce 2.4 million tonnes from 2.27
million tonnes while output from Malaysia is forecast to reach 1.2
million tonnes from 1.126 million tonnes in 2005, he said.

But Quah said supply would remain tight in Thailand and Malaysia in
the next few weeks because of persistent rains, while in Indonesia,
wintering curbed the outflow of latex.

He also said the council was concerned about the failure of some
buyers to honour the contracts, which resulted in delays in both
shipments and payments.

"The prices have been so volatile that some contracts are signed in
the morning and terminated in the evening. We don't want this to
happen," Quah said.

The market has been abuzz with talk that some Chinese buyers might
have defaulted on contracts in which they paid up to $0.80 U.S. cents
per kg more than the current market price, dealers said, adding that
the defaults affected many Thai shippers.

Tyre-grade Standard Thai Rubber, or STR20 block, was unchanged at $1.75 a kg.

Quah said council members have been asked to settle their disputes
with buyers within a month and file reports on the quantities of
rubber which have been hit by defaults.

"Then we can gauge the extent of the problem, but we are allowing them
to first settle their disputes. We will try to put up a list to rate
buyers according to the contract performance," he said without giving
further details.

ASEAN Rubber Business Council groups trade and industry organisations
from Thailand, Indonesia, Malaysia, Vietnam, Cambodia and Singapore.
($1=37.47 baht)

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Malaysia still needs Indonesian workers: Envoy

JAKARTA, September 26 (Asia Pulse/Bernama) - Malaysia still needs
workers from Indonesia but will only accept those who enter the
country legally, Malaysian Ambassador to Indonesia Zainal Abidin
Mohamed Zain said Monday.

"Of course, we need workers from Indonesia. In fact, we are grateful
that they are willing to work in our country and help our economy to
grow ... but these workers have to enter our country legally and they
must respect our laws," he said in an interview with Bernama, here.

Zainal Abidin said Malaysia would continue to repatriate illegal
Indonesian workers because the government does not want these workers
to be abused by their employers or thrown behind bars in Malaysia when
they caused mischief.

"There is a lesson to be learnt from the painful experience of the
illegal immigrants in Malaysia. As long as the Indonesian workers
continue to enter Malaysia illegally, they will be exposed to physical
abuse and ill-treatment by prospective employees.

"They also risk being arrested and thrown behind bars if they come
illegally," he said when commenting on the repatriation of thousands
of illegal Indonesian workers and the abuse of some illegal workers in
Malaysia in recent years.

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S. Korean paper firms seek continued tariffs on paper imports

SEOUL, September 26 (Asia Pulse/Yonhap) - South Korean papermakers
look for a continuation of and a rise in the government's present
punitive duties on certain papers from China and Indonesia as the
expiration date for the penal measure draws near, the companies said
Tuesday.

The government has been imposing anti-dumping duties ranging from 2.80
per cent to 8.22 per cent on wood-free uncoated papers and business
information papers from Indonesia and punitive tariffs of 5.50 per
cent to 8.88 per cent on those from China since November 2003.

The Korean Trade Commission (KTC) has reopened an investigation into
the case, putting off the expiration of the current punitive duties,
initially slated to end in early November, until next May.

The investigation followed an application from Hansol Paper Co.
(KSE:004150) and three other local companies in June.

South Korean paper companies argue that the commission should slap
higher tariffs on the imports since the current punitive duties have
been offset by the Korean won's ascent against the U.S. dollar. They
expect the final verdict to be available by year's end or early next
year.

"When we initially sought the government's penal measures in 2003,
there were five of us. But this year, only four companies were left to
file for a new probe," an official from Hansol Paper said on condition
of anonymity. "That shows how harmful dumped imports are to the local
industry."

Related Indonesian firms -- Indah Kiat Pulp and Paper Corp., Pindo
Deli Pulp and Paper Mills and Pabrik Kertas Tjiwi Kimia -- have made
appeals to the World Trade Organization and South Korea's judiciary,

but both institutions upheld the South Korean government's decision in
September and October last year, respectively.

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Joyo Indonesia News Service
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