THE
COORDINATING MINISTRY FOR ECONOMIC AFFAIRS
Tel: (021) 351-1178
Fax: (021) 351-1186 Website: http://www.ekon.go.id
Trade and
Investment News[1], 23 February 2009
Highlights
National
·
The
·
Payments to begin for mudflow victims
Terrorism
·
Security
·
Military to get $1.2 billion for arms
·
Armed Forces commander calls for Aceh agreement to
be respected
Law & order
·
Doubts
over enforcement of new anti-pornography law
·
A
businessman is jailed for three years for graft
Health
·
Economy
·
Per capita income rises to $2,271
·
ASEAN+3
moves to cushion financial meltdown
Business briefs
Macroeconomy
·
February inflation expected to ease further, says
central bank
Investment
·
Palm oil plants, oleochemical plants planned for
·
GM likely to postpone $600 million investment
State concerns
·
Regulation issued to promote local steel producers
SOEs
·
Capital expenditure to be boosted 20% to increase
jobs
Private sector
·
Qatar Telecom takes ownership in PT Indosat to 65%
Banks
·
Bank
·
Bank Negara
Power
·
Government to offer 15 geothermal fields for tender
Oil & gas
·
Government seeks to improve returns from contracts
Mining
·
PT Bukit Asam sees 13% boost in coal sales on power
station demand
NATIONAL
US eyes
With its giant population and moderate brand of Islam,
Indonesia is fast emerging as a cornerstone US partner for President Barack
Obama's administration, observers say, following the visit to Indonesia of the
top US diplomat, Agence France-Presse reported.
Obama spent four years of his childhood in
"Certainly
In November, President Susilo Bambang Yudhoyono also
appealed during a visit to
Jonah Blank, the chief policy adviser on South and Southeast
Asia for the Senate Foreign Relations Committee, said Obama had a "golden
opportunity" to make
"I think there is greater optimism now than I think
we've had at any other point since the founding of
Lt. Col. Desmond Walton, who handles Southeast Asia policy
at the Pentagon, said the
The
Prosperous
Bakrie to begin paying mudflow victims
The Bakrie family has said that it will begin the
distribution of monthly Rp15 million payments to victims of the Sidoarjo mudflow
disaster this week after lengthy discussions with the victims and Social
Minister Bachtiar Chamsyah, The
Nirwan Bakrie told tempointeraktif.com on Friday that his
family would transfer the allotment to each family each month via Bank Rakyat
Indonesia (BRI).
"We ask for the victims to start opening new accounts
at the bank as we will transfer the money next week. We'll also accelerate the
construction of houses for the victims so that they can move immediately,"
he said, adding that his family would monitor the distribution of the money
closely.
TERRORISM
Counter-terrorism conference
looks at closer cooperation
Officials from the State Intelligence Agency (BIN) were in
The conference was co-hosted by the Singapore Armed Forces
(SAF) and the
The theme for this year's conference is "Sharing
Expertise in Managing Transnational Security Issues," a press release
said. The first conference was held in 2007 in
The conference focused on "enhanced information-sharing
among the Asia-Pacific nations on counter-terrorism, maritime security and
humanitarian assistance and disaster relief."
Intelligence officials included representatives from
Singapore Defense Minister Teo Chee Hean said
"intelligence and information sharing is an important aspect of
international cooperation" and emphasized that by sharing diverse
perspectives and experiences.
“Such exchanges help to build understanding and lay the
foundation for our countries and armed forces to work together in response to
any future crises," he said.
He pointed to the Mumbai attacks as a latest example of a
"string of terrorist attacks" and a "grim reminder that
terrorism remains a common and persistent threat."
Police, TNI talk on counter-terrorism procedures
The National Police on Tuesday began talks with the Armed
Forces (TNI) in a bid to develop standard operation procedures for
counter-terrorism operations, Kompas reported.
“In the future, counter-terrorism operations will involve
all state agencies affiliated with counter- terrorism: Health, Social and
Foreign Ministries, Immigration, TNI and the Police,” said National Police
chief Gen. Bambang Hendarso Danuri.
According to Danuri, counter-terrorism operations strategy
in
Commenting on the talks in
“Following the joint exercise between the National Police
and TNI in December 2008, the TNI has learned to be able to locate terrorist
suspects without police aid when terror takes place simultaneously in different
locations,” said Soetanto.
Meanwhile, the government said it may arrange a visit with
alleged Jemaah Islamiyah (JI) terrorist mastermind Hambali, who has been jailed
for the past six years by the
"If there is a possibility to send representatives from
the Indonesian government to visit Hambali, we will consider it," Foreign
Minister Hassan Wirajuda said Wednesday.
"We have not received a full report on where the detainees
will go once the Obama administration shuts Guantanamo Bay down," Wirajuda
said, adding “whether they will be transferred to jails in the US or they will
be transferred to their home countries is still unclear.”
Hambali has been imprisoned at
The
SECURITY
Govt. extends credit to military amid shortage
The government has decided to accelerate the spending of
2004-09 state credit funds of about $1.2 billion on new weapons and equipment, The
Defense Minister Juwono Sudarsono said Tuesday that he had
discussed the plan with the head of the National Development Planning Board (Bappenas),
Paskah Suzetta, Finance Minister Sri Mulyani Indrawati and Military Chief Gen.
Djoko Santoso.
"Bappenas said the expenditure is urgently needed to
accelerate the export-credit process," Sudarsonso said.
He added that the funds would be used to buy a variety of
equipment including armored vehicles, aircraft and missiles for the Air Force
and a submarine. However, the government had also decided to review the
procurement plans, particularly those related to weapons.
For example, it was likely to buy only 40 armored vehicles,
jointly produced by French company Renault and local manufacturer PT Pindad,
though it had previously intended to buy 150. "We are also reviewing the
plan to buy a submarine from
Respect
All parties inside or outside Indonesia must respect the
peace agreement between the government and the Free Aceh Movement (GAM) signed
in Helsinki on August 15, 2005, Armed Forces (TNI) chief Gen. Djoko Santoso
said on Thursday, Antara reported.
Santoso’s statement was made ahead of a visit by the framer
of the Helsinki Accord, former Finnish Prime Minister Marti Ahtisaari, from
February 21 to 24. Ahtisaari is scheduled to meet Vice President Jusuf Kalla to
discuss the accord’s progress and implementation.
Santoso said security in Aceh remains conducive but conceded
that certain parties in Aceh remain unsatisfied and disagree with the Helsinki Accord.
He added that such sentiments are “natural.” Despite this, Santoso said, all
groups in Aceh should come together in creating a peaceful and prosperous Aceh.
LAW & ORDER
Unclear porn law 'can't be enforced'
Enforcement of the controversial anti-pornography law passed
by the House of Representatives in October last year would be almost impossible,
law enforcers said, The Jakarta Globe
reported.
Prosecutors, the heads of the South Jakarta and
"It is difficult to prove any breach of the law,"
said Nicolas A. Lilipaly, who heads the Jakarta Police's detectives unit
charged with combating pornography.
"We cannot implement the law, with its contradictory
content. We prefer to wait until the government issues regulations to clarify
the legislation," he said.
Businessman jailed three years for graft
A businessman was sentenced to three years in jail after his
conviction for corruption in a closely watched trial that analysts say
underscores
Billy Sindoro, a senior executive of the Lippo Group, was
also ordered to pay Rp200 million fine for trying to bribe Mohammad Iqbal, a
key official at the Business Supervision Commission (KPPU), last September.
Iqbal is facing a separate trial. The sentences delivered by Judge Moefri were
lower than the four-year jail term and Rp250 million fine demanded by
government prosecutors.
Bankers and analysts say the conviction demonstrates the
major strides the government has made in its fight against graft, which in
recent months has netted several high-profile personalities. “This is a good
signal because it shows that there is no let-up in the anti-corruption
campaign,” said the chief executive of a state-controlled Indonesian bank.
Sindoro was charged in September with making a Rp500 million
payment to Iqbal after the KPPU forced Malaysian-controlled satellite-television
company Astro to continue broadcasting sport and other programs through Lippo's
Direct Vision. In another case on Friday, the Supreme Court rejected an appeal
by businesswoman Artalyta Suryani and upheld a lower court conviction of five
years in jail and fines of Rp250 million for bribery, Kompas reported.
“The sentence of five years imprisonment has been upheld,”
said Supreme Court judge Artidjo Alkostar.
The
HEALTH
Australian Ambassador to Indonesia Bill Farmer and Fauzi
Bowo, governor of
The agreement "represents another step forward for HIV
prevention and treatment in
The agreement will increase access to HIV education,
counseling and testing; clean needles; drug treatment, including methadone
programs; basic health care; and education on antiretroviral treatment.
According to the Post,
the agreement also will create two new methadone programs in
The provinces of Banten, Central Java, East Java and
ECONOMY
Low
resources prices depress growth
Poor prices for minerals and agricultural products depressed
growth during the fourth quarter, when growth was recorded at 5.4%, while
full-year 2008 came in at 6.1%, the Central Bureau of Statistics (BPS) reported
last week.
The mining industry was the poorest performer during 2008,
contributing only 0.5% of the overall growth.
In the fourth quarter, construction, transport and
communications, financial ownership and business services and services showed
growth, while other sectors showed decline, with agriculture, livestock,
forestry and fisheries contracting by 22.9% as prices for commodities such as
crude palm oil fell.
The most positive growth during 2008 came from transport and
communications, at 16.7% for the full year, followed by electricity, gas and
water supply with growth of 10.9%. All other sectors saw single-digit growth.
In terms of the overall structure of the economy, household
consumption continued to dominate with 61% of activity, down from 63.8% in
2007, with exports in second place at 29.8%.
Looking ahead, the trade minister said on Saturday that export
volumes for non-oil and gas items are set to fall this year from 2008 as global
trade slows, Reuters reported.
Earlier this month, Trade Minister Mari Pangestu said
"Based on container flows for January-February, exports
volume this year may decline by between 20% to 30%. Non-oil and gas exports are
expected to fall," Pangestu said.
She added that exports of automotive products and
electronics would be worst hit.
Car exports through the Jakarta International Container
Terminal, the country's largest shipping terminal, fell to 9,391 units in
January, from 13,000 units in December, Pangestu said, a decline of about 27%.
Earlier, Pangestu said growth in total exports would slow to
just 1-2.5% this year, from about 20% in 2008. The government had previously
forecast total exports would grow 5% in 2009.
To boost employment and consumer demand, President Susilo
Bambang Yudhoyono’s government plans a Rp71.3 trillion ($6 billion) stimulus
package. That includes a plan to give tax breaks that will save individuals and
companies Rp43 trillion in payments this year, Bloomberg reported.
The government said it will also spend Rp15 trillion on
discounts for electricity tariffs and public works, adding to a previous plan
to outlay Rp12.5 trillion on a stimulus package meant to subsidize taxes and
duties.
Meanwhile
Last year, the country's GDP based on constant prices
reached Rp2,082.1 trillion, BPS head Rusman Heriawan said.
Communication and information Minister Muhammad Nuh said on
Wednesday that the number of poor is predicted to decrease by 4 million to
33.714 million in 2009, Xinhua reported.
Nuh said the fall in the poverty rate would not be as much
as expected due to the global financial crisis.
Despite projections of a slump in economic growth and the 9%
inflation rate, the minister was optimistic that the number of poor people
would be reduced.
|
Growth Rate of Quarterly Gross
Domestic Product By Industrial Origin (%) |
||||
|
Industrial
Origin |
Quarter III-2008 over Quarter II-2008 |
Quarter IV-2008 over Quarter
III-2008 |
Quarter IV-2008 over Quarter
IV-2007 |
|
|
1. |
Agriculture,
Livestock, Forestry & Fishery |
7.2 |
-22.9 |
4.7 |
|
2. |
Mining and
Quarrying |
1.9 |
-0.0 |
2.1 |
|
3. |
Manufacturing
Industry |
3.1 |
-2.5 |
1.8 |
|
4. |
Electricity,
Gas and Water Supply |
2.3 |
0.8 |
9.3 |
|
5. |
Construction |
3.2 |
1.9 |
5.7 |
|
6. |
Trade,
Hotel, and Restaurant |
4.9 |
-2.6 |
5.6 |
|
7. |
Transport
and Communication |
4.5 |
4.8 |
15.8 |
|
8. |
Financial,
Ownership & Business Services |
1.8 |
2.0 |
7.4 |
|
9. |
Services |
1.1 |
1.7 |
6.0 |
|
GDP |
3.7 |
-3.6 |
5.2 |
|
|
GDP
without oil and gas |
3.9 |
-3.8 |
5.6 |
|
Source:
Central Agency of Statistics
BUSINESS BRIEFS
MACROECONOMY
February
inflation may ease further: BI
"If
inflation eases, there is certainly a possibility for a rate cut at next
month's monetary policy meeting, “Goeltom said.
BI has
cut its benchmark rate BIPG by a total of 125 basis points since December, to
8.25%, as inflationary pressures eased and growth concerns increased.
Inflation
peaked in September at more than 12% and eased to 9.2% in January, after the
government cut subsidized fuel prices twice in December and again in January.
BI
Governor Boediono said on Friday that BI will support the rupiah currency and
may add more ammunition to contain the volatility, reiterating earlier comments
as the currency weakened.
"The
dollar is strengthening against many currencies. The problem is that this is
definitely a global movement. We will surely be cautious so that our rupiah
will not be too volatile," Boediono said.
The
rupiah moved in tight ranges around Rp12,000 per dollar, with BI suspected of
selling dollars in the market to support the rupiah, which has lost around 9%
against the dollar so far this year.
The
country's foreign exchange reserves had fallen to $50.87 billion by the end of
January.
Budget deficit rises as economic growth slows
The budget deficit is forecast to increase as the country's
economy grows more slowly than expected, reducing state revenues, according to
senior officials at the Finance Ministry, The
Jakarta Post reported.
Director General of Budget Management Anny Ratnawati said
the budget deficit would reach Rp136.9 trillion, or 2.6% of the country's gross
domestic product (GDP), higher than the previous forecast of Rp129.5 trillion,
or 2.5%.
The increased deficit results from lower state revenue
alongside higher state expenditure, she said.
The figures may change when the government and the House of
Representatives wrap up the revision to the 2009 state budget scheduled for
this week.
Anggito Abimanyu, the ministry's head of fiscal policy, told
the House that adoption of a lower economic growth projection would change
budget assumptions.
"Based on our latest exercise, a more realistic growth
level is 4.5%, down from 4.7%, due to the recent global developments."
While the deficit would be higher, Abimanyu remained
optimistic the government would have no problem in financing the deficit.
"There will be additional financing, whether from
abroad or from domestic sources. There are also standby loans that can be used
in emergency circumstances," Abimanyu said.
Finance Minister Sri Mulyani Indrawati said earlier that
several multilateral agencies and countries had provided $5-$6 billion in
standby loans for
On Monday, the ADB said it is set to provide a total of
$1.75 billion in loans on top of the already allocated $750 million for
The government expects to finance its higher budget deficit
this year by capitalizing on demand for Islamic-compliant products in the
country.
On Tuesday, the government raised a total of Rp4.75 trillion
($402.5 million) in a debt auction, above its target, reflecting investor
expectations of further cuts in the central bank's key interest rate BIPG.
Meanwhile, demand for Indonesia's maiden retail shariah
bonds (sukuk) has reached Rp3.18 trillion, compared with the government's
target of Rp1.7 trillion, and the size of the issuance will likely be below Rp4
trillion, the finance ministry's Director General for Debt Management Rahmat
Waluyanto said Monday, Dow Jones reported.
ASEAN+3 moves to cushion financial
meltdown
Finance
Ministers of Southeast Asia nations, Japan, China, and South Korea (ASEAN+3)
agreed Sunday to prepare precautionary measures aimed at avoiding the region
from falling deeper into severe financial meltdown, The Jakarta Post reported.
In its
joint statement after a meeting in Thailand's resort island of Phuket, ASEAN+3
agreed to expand its pool of cooperation fund to US$120 billion from $84
billion worth of foreign exchange reserves under the Chiang Mai Initiative
framework signed in 2000.
According
to Mulyani, while the ASEAN+3 noted the Asian economies are in a better
position to face challenges due to the structural reforms undertaken since the
Asian financial crisis, it recognized the regional economy is now facing great
challenges.
"The
current severe economic downturn of the global economy coupled with heightened
risk aversion in financial markets has adversely affected the region,"
said Mulyani.
ASEAN+3 includes the 10 members of the Association of
Southeast Asian Nations (ASEAN) -- the Philippines, Indonesia, Thailand,
Malaysia, Singapore, Brunei, Vietnam, Myanmar, Cambodia and Laos-- as well as
three East Asian nations -- Japan, China, and South Korea.
The group has a total population of 2 billion, a combined
gross domestic product (GDP) of $9.09 billion, and foreign reserves of $3.6
trillion. Therefore, ASEAN+3 represents one third of the world's population, 16
percent of the world's GDP, and holds more than half of the world's reserves.
As the first concrete joint action in
Members in dire need of the foreign exchange reserve fund,
however, will be subject to an independent surveillance mechanism by other
members. A concrete arrangement of the surveillance will be decided during the
upcoming ASEAN meeting in
The group will also accelerate measures for better managing
the regions' bond market by accelerating the completion of the Asian Bond
Markets Initiative (ABMI) roadmap.
Thailand Finance Minister Korn Chatikavanij, which
co-chaired the ASEAN+3 meeting, said in a joint statement the roadmap would
focus on the promotion of local currency bond issue, facilitation for the bond
demand, and legal framework and infrastructure improvement for bond markets in
the region.
"The implementation of the new roadmap is expected to
contribute to the broad-based development of local currency denominated bond
markets and greater accessibility to the regional bond markets," he said.
"We also recognize the important role of the private
sector in the development of bond markets, particularly in cross-border bond transactions
and settlement issues."
ASEAN+3 also agreed to inject the Asian Development Bank
(ADB) with more capital in a bid to strengthen the bank's role in mitigating
risks of its members in facing future financial uncertainty. The capital
increase will be decided at the upcoming ADB annual meeting in May.
On Thursday, Finance Minister Sri Mulyani Indrawati said
"The
Govt. to repay $9B in foreign debts
this year
The Finance Ministry said Rp100 trillion ($9 billion) of the
country's total foreign debt of Rp1,500 trillion will be due for repayment this
year, Asia Pulse reported.
Repayment will not have a negative impact on the country's
balance of payments, Debt Management Director General Rahmat Waluyanto said on
Monday.
Every year the country refinances its debt partly with new
loans or bond funds and therefore there is no effect on the balance of
payments, Waluyanto said.
By refinancing with new loans or bond funds, the repayment
term will be extended, he said, but he admitted there was the risk of a greater
repayment burden due to the falling value of the rupiah, Investor Daily
reported.
INVESTMENT
Palm oil ports, oleochemical plants planned for E. Kalimantan
An investor from the
He added that at least seven local investors plan to build
oleochemical factories with an initial investment of $272.3 million in the
province this year, Asia Pulse reported.
The investors want to produce fatty acid, fatty alcohol and
glycerol with factories to be built in the Maloi Industrial Estate in
GM likely to postpone $60M investment
General Motors Corp. (GM) will likely delay a planned $60
million Indonesian investment this year because of difficulties in securing
local components, Asia Pulse reported.
The local component industry is beset by crisis as a result
of weak demand from auto makers, PT General Motor Autoworld Indonesia (GMAWI)
managing director Mukita Sutikno said.
This situation had become a stumbling block for the
subsidiary of GM in carrying out its investment plan, Sutikno said.
He said local content of at least 40% was required for cars
to be produced in the country. "It would be difficult to meet the
requirement if local industry is facing a problem supplying components."
Earlier, GM Asia Pacific president Nick Reilly said GM would
set aside $60 million for investment to produce cars in
So far GM cars sold in
GM already has an assembling facility at Pondok Ungu, Bekasi
with a capacity of 20,000 units a year. The factory stopped operation in 2005
because of marketing problems.
STATE CONCERNS
Regulation on steel imports issued to promote local industries
The government has issued a regulation to protect the country’s
domestic steel industry from illegal steel imports, officials said on Friday,
at a time when the government is promoting local goods to drive economic
growth, Reuters reported.
Under a new regulation, all steel imports will have to be
verified by independent surveyors at the loading ports before being shipped to
From April 1, steel producers and importers must register
with the Trade Ministry, Maulida said, adding that the regulation will be
effective until December 2010.
But the regulation will not apply to imports of steel under
bilateral agreements such as under the Indonesian-Japan economic partnership
agreement. Steel products which are not made locally, including special steel
for the automotive, electronics and shipbuilding industries, are also exempt.
“Producers are now looking for markets for their products
and
Imports of steel products nearly trebled in 2008 to 9
million tons, from 3.4 million tons in 2007, as local steel producers rushed to
buy semi-finished products at a time of rising prices, according to data from
the Indonesian Iron and Steel Industry Association (IISIA).
SOEs
SOEs to increase spending 20% to create jobs
State-owned enterprises (SOEs) will increase capital
expenditure by over 20% compared with a year earlier in order to accelerate job
creation, State Enterprises Minister Sofyan Djalil said on Monday, The Jakarta Globe reported.
"This capex policy is intended to increase the
disbursement of funds to the real sector through strategic projects,"
Djalil said.
Djalil told the House of Representatives Commission VI,
which oversees trade, industry and state enterprises, that out of the 135 SOEs,
63 have submitted their projected capex, totalling Rp146.9 trillion ($12.4
billion). The rest are either undergoing a restructuring or don't contribute
significantly.
Djalil said that state power company PT PLN would set aside
$1.93 billion in capital for investments that would help increase its power
capacity by as much as 34,899 MW by 2018.
Another major capex contributor is PT Telkom, which has
earmarked around Rp24 trillion in capex.
State-owned steel producer PT Krakatau Steel, the biggest
contributor from the manufacturing sector, will allocate Rp2.72 trillion this
year, an increase of 320% from the Rp647 billion it spent last year. The
largest portion of its capex will be invested in new blast furnace
technologies.
The total figure represents an increase of 21.7% over the
2008 capex from state-owned companies, which previously amounted to Rp120.6 trillion.
The ministry’s secretary Muhammad Said Didu said the
increased capex could help offset job losses during the first half of the year
when the impact from the crisis will most likely be the most severe.
Didu said over 300,000 new jobs are expected to be created
in 2009 alone, mostly in the transportation and telecommunication sectors.
Didu said that some of the money would come from SOEs'
internal cash flow, but most will be drawn from external sources.
Garuda expects 2009 revenue to rise 20%
National flag carrier PT Garuda Indonesia's revenue is
targeted to rise 20% to around Rp21.6 trillion this year from around Rp18
trillion ($1.8 billion) in 2008, chief executive Emirsyah Satar said Wednesday,
Dow Jones reported.
The revenue growth target is lower than the 38% increase
Garuda posted last year.
Satar expects passenger volume to increase between 15% and
20% this year as it adds 15 domestic and three international routes this year.
The company has not yet reported its 2008 performance.
Garuda has also set itself the target of earning $13 million
from cargo services this year, up 15% from 2008 when the figure was $11.3
million, its marketing director Agus Priyanto said after the launch of Garuda
cargo services "Go Product" on Wednesday, Antara reported.
"Go Product" is the company`s program aimed at
ensuring secure and reliable cargo services, he said, adding that the company`s
cargo services are projected to grow 15% this year.
Last year, Garuda carried 410 tons of cargoes consisting of
210 tons of domestic cargo and 200 tons of international cargo.
Four SOEs to pay Rp1.12T in dividends
Four state-owned enterprises (SOEs) are to pay Rp1.12
trillion in dividends to the state in fiscal year 2008, up from Rp864.02
billion in the previous year, State Enterprises Minister Sofyan Djalil said on
Monday, Dow Jones reported.
Djalil told members of House of Representatives in a meeting
that state gas distributor PT Gas Negara (PGN) and PT Bank Negara Indonesia
(BNI) are expected to put aside 25% and 38% of their 2008 net profit
respectively.
"We also expect some dividend payments from other
state-owned companies like developer PT Wijaya Karya and toll road builder and
operator PT Jasa Marga," Djalil said.
Djalil said that based on an earlier report from the
state-owned companies, PGN's 2008 net profit will likely rise 52% on year to
Rp2.35 trillion, while Bank BNI's will gain 34% to Rp1.2 trillion.
For Jasa Marga, he said, 2008 net profit will likely stand
at Rp640 billion, with Rp49 billion to be put aside for the dividend payment,
while for Wijaya Karya, 2008 net profit will likely be at Rp140 billion of
which Rp29.66 billion will be for dividends.
The government owns 54.6% of PGN, 76.3% of BNI, the nation's
fourth largest lender in terms of assets, 70% of Jasa Marga and 68.4% of Wijaya
Karya.
PRIVATE SECTOR
QTel to own 65% of Indosat after tender
Qatar Telecom (QTel) said it will own about 65% of PT
Indosat, Indonesia's second-largest mobile-phone operator, after completing a
tender offer on February 18 to buy the company's remaining shares from the
public, Bloomberg reported.
Qatar Telecom bought around 57% of the shares investors
offered to sell, the company said in an e-mailed statement on Friday. The
Qatari company offered to buy Indosat's remaining shares it doesn't own already
after it acquired 40.8% of the company last year.
Indosat shares fell 8.5% to Rp4,300 in
Humpuss to spend up to $150M on expansion
PT Humpuss Intermoda Transportasi will spend up to $150
million this year to buy new ships and for business expansion, Asia Pulse
reported.
Humpuss hopes to raise funds through a rights issue, bond
sales and private placement and other financing schemes, newly appointed
finance director Permadi Soekasah said.
Soekasah said the company plans to buy three barges this
year
The company also plans to acquire 98% of Humpuss Trading
from Humpuss Patra Gas, which are both its affiliates.
Humpus Intermoda will expand business from sea transport to
high speed diesel, coal and power generating sectors.
Indal
Aluminium to invest $1.09M in maintenance
PT Indal
Aluminium Industry has said it will invest up to Rp120 billion ($1.09 million)
this year, mainly to maintain its aluminum factory machines, Asia Pulse
reported on Thursday.
This
year, Indal hopes to turn out 700 tons of aluminum per month, about the same as
last year, company secretary Ariawan Wiradinata said.
The
company had no plans to expand its production capacity, although its installed
capacity of 1,000 tons per month would allow an increase in production,
Wiradinata said.
The
company had set a conservative target, as the price of that commodity was on
the decline in the global market - down to around $1,400 per ton from last year's
level of $2,800.
With the
falling price, the company expected to see a 30%-40% decline in income this
year from Rp500 billion un-audited last year, Investor Daily reported.
BANKS
BI,
local banks to set up fund pool
Bank
Indonesia (BI) and several large local banks are preparing a fund pool, which
can be tapped for lending to banks that need liquidity, Bisnis Indonesia reported Thursday.
The
measure is aimed at rejuvenating activities in the interbank money market, BI director
for Banking Research and Supervision Halim Alamsyah.
The value
of interbank transactions has been declining as banks became cautious in
lending to other banks amid the global financial crisis. As a result, interbank
lending rates are still high although BI has cut its benchmark rate by a total
of 125 basis points since December.
Alamsyah
was quoted as saying that the fund pool is expected to help bring interbank
rates down.
BNI sees loan growth slowing to 16%
Loans disbursed by
"We are still optimistic to reach 16%-18% loan growth.
We will focus on loans for infrastructure projects and small businesses
throughout the regions," president director Gatot Suwondo said on the
sidelines of a seminar.
Suwondo also said the bank expects a 5%-5.5% increase in net
interest income this year, compared with an estimated 6% increase in 2008. BNI's
net interest income was Rp7.46 trillion ($633 million) in 2007.
The bank also plans to sell asset-based securities valued at
around Rp400 billion ($36.3 million) to strengthen its housing financing business
through its shariah unit, Asia Pulse reported.
CIMB Niaga 2008 net profit down 55%
PT Bank CIMB Niaga posted net profit of Rp678 billion in
2008, a 55% decline from the 2007 combined net profit of Bank Lippo and Bank
Niaga, the two banks which formed CIMB Niaga in a merger in November last year,
said Arwin Rasyid, the president director of the new bank, Dow Jones reported.
"The decrease in profit was caused by the cost of the
merger which was Rp315 billion, as well as other costs,” Rasyid told a news
conference on Tuesday.
Rasyid added that aside from the merger costs, CIMB Niaga
had also incurred loan loss provision expenses of Rp1.17 trillion; losses on
marketable securities of Rp300 billion; and derivatives losses of Rp55 billion
from an interbank facility with Indonesische Overzeese Bank NV (Indover), the
Netherlands-based Bank Indonesis subsidy which collapsed last year.
Rasyid estimated that net profit would have been Rp2.17
trillion had those losses not occurred.
He said the bank this year is certain its bottom line will
grow significantly from 2008, adding that full integration following the merger
process is targeted for completion in the third quarter.
Rasyid added that CIMB Niaga is considering issuing up to
Rp1 trillion of asset-based securities to support loan expansion in 2009 and
may raise its floating shares from 2% at present if it is allowed to do so by
the Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK).
BI to intensify supervision of derivatives
Bank Indonesia (BI) will intensify supervision of
derivatives products from overseas that commercial banks sell in
"We will do it technically with coordination with the
Capital Market and Financial Institution Supervisory Board (Bapepam-LK) so we
can deepen our supervision," BI Governor Boediono said, adding that both
institutions – BI and Bapepam – would act quickly if irregularities or problems
were identified.
BI deputy governor Muliaman Hadad told reporters at the same
meeting that BI expects the new regulation will give clear guidelines for banks
or agents selling the international products.
“Under the new rules, every bank that aims to sell such
products would need to report to BI, and they must present the products
clearly," said Hadad, adding that the requirements would allow the central
bank to clarify whether the products were legal.
The increasing complexity and sophistication of the
financial sector and of products such as derivatives has exposed 15 banks in
A number of banks, including PT CIMB Niaga and PT Bank
Danamon
POWER
Govt. to offer 15 geothermal fields for tender
The government will soon call for bids for exploration and
development of 15 geothermal fields which could generate around 1,500 MW of
electricity and require a total investment of $4.5 billion, Dow Jones reported.
Director General of Mineral, Coal and Geothermal Resources
at the Ministry of Energy and Mineral Resources, Bambang Setiawan, said the
tenders will be organized by the regional governments where the fields are
located.
The fields are Seulawah Agam in Aceh, Telaga Ngebel in East
Java, Gunung Ungaran in Central Java, Jaboi in Aceh, Gunung Talang in West
Sumatra, Blawan Ijen in East Java, Hu'u Daha in West Nusa Tenggara, Sipoholon
Ria-Ria in North Sumatra, Bukit Kili in West Sumatra, Sorik
Marapi-Roburan-Sampuraga in North Sumatra, Marana in Central Sulawesi,
SongaWayaua in South Halmahera, Atadei in East Nusa Tenggara, Suwawa in
Gorontalo, and Kaldera Danau in Banten.
OIL & GAS
Govt. to revise conditions for oil, gas contracts
The government will revise terms and conditions of oil and
gas contracts to be more in favor of the state and raise its oil and gas
production split for contract extensions, Energy and Mineral Resources Minister
Purnomo Yusgiantoro said, according to a report on Monday.
Yusgiantoro said currently the government is processing
proposed extension of six oil and gas block contracts.
The government will first offer the blocks including the A
Block, South Sumatra Extension, Mahakam Block and Madura BD, to state oil and
gas company PT Pertamina, Purnomo said.
However, the government has not received a request from the
state oil and gas company to take over further exploitation of the oil blocks,
Yusgiantoro said.
The government is yet to hear from Pertamina if it has
enough funds and the technology to take over the projects, he was quoted as
saying by Investor Daily.
Pertamina lifts 2009 oil output estimate
State-owned oil and gas company PT Pertamina has lifted its
estimate for its oil output this year by 2,150 barrels per day (bpd) to 171,900
bpd, up 1.3% from its original estimate, president director Karen Agustiawan
said Monday, Platts reported.
Pertamina also plans to acquire new domestic and foreign
fields, another official said, but declined to provide any details.
The company pumped 156,000 bpd of oil and 1.2 billion cubic
feet per day of gas last year.
The government has estimated that its crude oil and
condensate output last year totaled 978,000 bpd, up from its target of 977,000
bpd. For 2009, the government has set a production target of 960,000 bpd.
Pertamina corporate secretary Toharso said the company will
optimize production of a number of its oil refineries to give it an additional
income of more than $112 million this year, Asia Pulse reported.
Chevron slates $2.13B for Riau oil fields
Chevron Pacific Indonesia plans to spend $2.13 billion on
its Riau oil fields in 2009, an official said Tuesday, Platts reported.
"The capital expenditure is only for the Riau
area," said the official, who declined to be named.
Chevron spent $2 billion on capex and operation expenditure
last year, Chevron IndoAsia business unit managing director Steve Green said
separately, but declined to give detailed figures for this year.
The government has set a production target of oil and
condensate for Chevron of 380,330 barrels per day (bpd) in 2009, down 6.7% on
last year's output of 407,466 bpd, the chairman of upstream oil and gas
regulator BP Migas Raden Priyono said Tuesday.
"The lowering of this year's production is because of
natural decline, as Chevron's oil fields have matured," Priyono said.
Though Chevron's production has been declining, the company
was able to pump 393,084 bpd from January to February, exceeding its target, he
added.
Chevron has begun expansion projects in the
The investment is estimated to reach $1.3 billion, Priyono
has said. Without an enhanced oil recovery program, the decline in Riau would
have been worse at 15%-20%.
Chevron Pacific Indonesia remains
MINING
Bukit Asam
sees 2009 coal sales up 13%
State coal miner PT Tambang Batubara Bukit Asam expects its
coal sales to increase by 13% this year on firm demand from the power sector,
its president director said on Thursday, Reuters reported.
"Coal demand globally is indeed slowing because of the
financial crisis. But there will be new power plants coming on stream this year
in the country and elsewhere," Sukrisno said after a hearing with the
House of Representatives.
Three new power plants with total generating capacity of
1,000 MW are due to come onstream this year as part of the government's crash
program to add 10,000 MW of generating capacity through coal-fired power
stations.
According to Sukrisno, Bukit Asam had committed to supply
three million tons per year for the program.
Bukit Asam plans to sell 14.5 million tons of coal this
year, with about 12.7 million tons supplied from its own production. It will
buy the rest from other producers. The firm sold 12.8 million tons in 2008.
Bukit Asam also planned to increase coal production to 50
million tons a year within five to six years by carrying out a number of
projects including railway projects and acquiring coal mines.
INCO reports 69.4% drop in 2008 net profit
PT International Nickel Indonesia (INCO) said Friday its
2008 net profit fell 69.4% to $359.3 million because of a sharp decline in
nickel prices, Reuters reported.
"The results were driven by lower margins on nickel in
matte sold, and as a result of lower average selling prices, and lower nickel
in matte deliveries," said Arif Siregar, the firm's president director, in
a statement.
INCO said sales fell 43.6% to $1.31 billion in 2008, from
$2.32 billion in 2007.
The company's realized nickel price averaged $17,724 per
metric ton in 2008, a drop of 40.7% from the 2007 average of $29,881.
Nickel prices MNI3 have slumped nearly 80% to about $10,750
a ton since hitting a record high of $51,800 in May 2007, as output cuts by
miners have failed to keep pace with the drop in demand from stainless steel
producers.
INCO produced 72,400 metric tons of nickel in matte, down
5.6% from 76,700 tons on 2007 and below its initial target of 77,000-79,000 for
2008.
The lower output was the result of the company's decision in
late October 2008 to turn off all its thermal power generators to cut energy
costs, Siregar said.
Mitsubishi to pay $145M for N. Maluku nickel project
Mitsubishi Corp.,
Eramet will hold the remaining 66.6% of Strant, which is
engaged in the exploration of the
Mitsubishi and Eramet will jointly conduct a feasibility
study on the development of the mine.
The two firms aim for annual production of up to 65,000 tons
from the mine, which contains 5.1 million tons of nickel ore resources,
Mitsubishi said.
January tin exports fall nearly 38%
But the volume was nearly double that in December, when
3,805.50 tones were exported.
“Exports fall because of slowing demand from overseas buyers
and low tin prices,” said an official at the trade ministry.
A drop in tin prices has cut margins for small smelters and
prompted them to temporarily suspend operations since October.
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[1] This Trade and Investment News is a publication of the Coordinating
Ministry for Economic Affairs of the Republic of Indonesia. Readers are
welcomed to forward it in its original form but no reproduction is allowed
without permission.