[Kabar-indonesia] 20 RI Biz/Econ Reports: Export Value, Volumes Up; 12.25% SBIs [+JSX/Rupiah]

[JoyoNews at aol.com]

20 Reports:

- JP update: Export value, volumes up 
- Indonesia per capita income rises
    to $1,500
- Investment projects in Indonesia in H1
    fall below expectation
- Indonesia Shares End 1.7% Higher 
  On Interest Rate Cut Hopes
- Indonesia Rupiah Ends Steady; Market 
  Awaits Central Bank Move
- Bank Indonesia awards 59.33 trln rupiah
    1-mth SBIs at fixed rate 12.25 pct
- Indonesia govt hopes ECA will offer 'haircut'
    in Garuda debt restructuring
- JP: BCA shrugs off poor conditions to
    produce 16% first-half rise
- Indonesia's BCA revises down credit
    expansion target
- Indonesia's Bank Niaga postpones plan to
    issue bonds this year
- Lehman says buy tire-maker Gajah
    Tunggal's bonds
- Three Indonesian state-owned firms
    plan IPO in 2007
- Jakarta retail space market to grow 1 mln sqm
    until 2008 - Jones Lang LaSalle
- BI: Lippo Karawaci to Develop Two Superblock
    At Yearend
- Indonesia's Texmaco Jaya H1 net loss
    7.08 bln rupiah vs loss 78.03 bln
- Japan Land Prices Rise for  First Time 
  Since Early '90s
- Indonesian govt raises export tax on
    polished rattan
- Indonesia, S. Koea sign MOU on
    forestry development
- Japan's Nihom Trim to launch bottled
    water ops in Indonesia
- Indonesia's Polysindo H1 net profit 
  127.98 bln rupiah vs loss 832.78 bln

The Jakarta Post
August 2, 2006

Export value, volumes up 

Andi Haswidi, The Jakarta Post, Jakarta

High global demand for non-oil and gas commodities, including crude palm oil, 
coal and rubber, helped push Indonesia's exports up in the first half of the 
year, 
the Central Statistics Agency (BPS) reported Tuesday.

Coming in at US$46.92 billion, exports were 15.14 percent higher compared to 
the same period of 2005. 

Newly appointed BPS director Rusman Heriawan said the higher value of both 
oil and gas and non-oil and gas exports was attributable not only to price but 
also volume increases. 

"Our exporters have expanded their markets so that there were increases in 
volumes for several commodities, notably coal, crude palm oil and rubber 
exports," said Rusman. 

Rusman admitted that the rise in exports had been helped by the decisions of 
the United States and the European Union to impose import quotas on certain 
goods from China following dumping charges. 

"There are indications that our exporters took advantage of this," he said. 

Since the beginning of the year, Indonesia has seen its overall exports 
maintain their upward trend, despite some slight ups and downs in the oil and gas 
sector. 

"If we can maintain the current export growth rate, it is possible that we 
will be able to achieve this year's US$100 billion target for exports." 

By destination, Japan remained the biggest importer of Indonesian goods in 
the first semester at $5.3 billion. The U.S. came second at $5.2 billion 
followed by Singapore on $3.8 billion and China on $2.3. 

On a monthly basis, total exports in June increased by 1.7 percent to stand 
at $8,483.4 million compared with $8,342.2 million the previous month. This had 
much to do with high demand for non-oil and gas products, which increased by 
2.38 percent from $6,552.9 million in May to $6,709 million in June. 

Meanwhile, oil and gas exports declined 0.82 percent from $1.789,1 million to 
$1.744,4 million. 

Rusman said that based on figures from state oil and gas firm Pertamina and 
the upstream oil and gas regulator (BP Migas), the decline in oil and gas 
exports in June was due to a 3.38 percent fall in oil exports and a 14.97 percent 
slump in gas exports. 

The first half of 2006 also saw a 1.31 percent increase in total imports from 
$28.46 million in the same period last year to $28.83 million this year. 

This was the result of a 12.8 percent increase in imports in the oil and gas 
sector. By contrast, however, non-oil and gas sector imports decreased by 3.14 
percent. 

Agency records show that during the period from June 2001 to June 2006, 
non-oil and gas imports have always been higher than oil and gas imports, usually 
by twice as much. 

The newly released figures also show that in the first half of 2006, the 
biggest contributors to overall imports were machinery and mechanical instruments, 
which together accounted for 17.49 percent of the country's total imports. 

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Indonesia per capita income rises to $1,500

JAKARTA, August 2 (Xinhua) -- Per capita income in Indonesia has
reached 1,500 U.S. dollars to lift the country into a lower-middle
income economy, the Central statistics Agency said Wednesday.

"Indonesia is now categorized into a lower-middle income country.
During the peak of the financial crisis, Indonesia was a lower-income
country. It means we have upgraded ourselves," the agency's head
Rusman Heriawan told reporters here.

In the years of crisis, per capita income ranged from 600 dollars to
1,000 dollars.

Rusman said the stronger rupiah, now hovering around 9,100 against the
dollar, helped lift per capita income.

"If the rupiah fell again to 18,000 per dollar, per capita gross
domestic product would be reduced to just 750 dollars," he said,
referring to the worst period in 1997-98 when the rupiah hit its
lowest value ever.

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Investment projects in Indonesia in H1 fall below expectation

JAKARTA, August 2 (Asia Pulse/Antara) - Implementation of foreign
direct and domestic investment in the country fell short of
expectation in the first half of this year though rising from the same
period last year, an official said.

The realization was valued only at Rp45.23 trillion (US$9 billion), up
12 per cent from the same period last year but not up to 50 per cent
of the annual target of Rp132 trillion, a deputy at the investment
coordinating board (BKPM) Mohamad Najib said.

Najib said implementation of foreign direct investment (FDI) projects
was valued at Rp34.04 trillion and that of domestic investment (PMDN)
totaled Rp11.19 trillion.

He said a total investment of Rp765 trillion including by the
government and non facility companies in addition to FDI and PMDN,
will be needed to achieve the economic growth target of 6.2 per cent
this year.

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Indonesia Shares End Higher On Interest Rate Cut Hopes

JAKARTA, August 2 (Dow Jones)--Indonesia shares closed higher
Wednesday led by further buying in bank and telecommunication blue
chips amid growing expectations that the central bank will cut its key
interest rate due to easing inflation, dealers said.

The Jakarta Stock Exchange Composite index ended up 22.671 points, or
1.7%, at 1394.364, the highest closing level since May 18.

Merrill Lynch predicts Bank Indonesia will cut its benchmark one-month
rate by 50 basis points at a monetary policy meeting Tuesday.

"A healthy set of inflation and trade data along with a stable
exchange rate has set the stage for Indonesia's central bank to
implement larger rate cuts next week," Merrill said. The benchmark
rate is now at 12.25%.

The official Central Statistics Agency said Tuesday that Indonesia's
consumer price index for July climbed at a slightly
slower-than-expected pace of 15.15% on year, compared with June's
on-year inflation of 15.53% and 0.45% on month.

Gainers led decliners 94 to 27, with 73 stocks unchanged.

Volume was 1.72 billion shares valued at IDR2.0 trillion, compared
with 1.1 billion shares valued at IDR1.5 trillion Tuesday.

Bank Mandiri, the nation's largest bank by assets, rose 5% to
IDR1,890, Bank Central Asia, the second-largest bank, rose 1.2% to
IDR4,325, and Bank Danamon, the fifth-largest bank, jumped 7.2% to
IDR4,850.

Lower interest rates could increase banks' net interest margins and
reduce the debt burdens of many companies, analysts said.

Bellwether Telekomunikasi Indonesia rose 3.9% to IDR7,950 on
expectations that it will report solid 2006 earnings due to an
increase in its revenue from cellular and Internet services.

Dealers said the lower interest-rate outlook for this year also
spurred buying in property stocks such as Ciputra Surya, which ended
5.9% at IDR720, and Surya Semesta Internusa, which gained 2.1% to
IDR480.

On the downside, cement maker Semen Gresik fell 1.6% to IDR25,000 on
profit-taking.

Dealers expect shares to trade slightly lower Thursday on
profit-taking after the main index's 7% rise in the previous seven
sessions.

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Indonesia Rupiah Ends Steady; Mkt Awaits Ctrl Bk Move

JAKARTA, August 2 (Dow Jones)--The Indonesian rupiah ended steady
Wednesday as the market awaited Bank Indonesia's meeting next week,
when it is widely expected to cut its key interest rate, dealers said.

'The market is waiting for the results of the rate decision before
people make news positions,' a dealer with a U.S. bank in Jakarta
said.

The dollar closed at IDR9,108, little changed from its close Tuesday
at IDR9,107.

Analysts mostly expect the central bank to cut its key rate by 50
basis points to 11.75% Tuesday in response to easing inflation in July
and stability in the rupiah.

Bank Indonesia Senior Deputy Governor Miranda Gultom Wednesday
indicated the bank's readiness to cut rates more aggressively as
inflation seems to be easing faster than expected.

'There's a big scope for monetary policy easing in the future if we
look at the inflation trend in Indonesia, which is falling faster than
expected,' Gultom told reporters, without providing any specific
projections on benchmark interest rate movements.

Gultom's comment drove Indonesian bond prices in the domestic market,
dragging the yield down, dealers say. For example, the yield on the
government bond due in 2026 fell to 11.98% from 12% Tuesday.

Dealers expect the dollar to trade between IDR9,100 and IDR9,125 Thursday.

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Bank Indonesia awards 59.33 trln rupiah 1-mth SBIs at fixed rate 12.25 pct

JAKARTA, August 2 (XFN-ASIA) - Bank Indonesia said it has awarded
59.33 trln rupiah worth of one-month Bank Indonesia Certificates (SBI)
at a fixed rate of 12.25 pct.

The SBI rate is pegged to the benchmark interest rate, or the BI rate.

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

Indonesia govt hopes ECA will offer 'haircut' in Garuda debt restructuring

JAKARTA, August 2 (XFN-ASIA) - The government is hoping that the
European credit agency (ECA) will offer a debt "haircut" as part of a
scheme to restructure 500 mln usd that is still owed to the agency by
PT Garunda Indonesia, State Enterprises Minister Sugiharto said.

Garuda and ECA are still in negotiations over debt restructuring options.

"It should be settled in a business-to-business arrangement. I
understand that Garuda met with ECA two weeks ago and they will meet
again in September, " Sugiharto told reporters.

"We hope that there will be a rescheduling and even a waiver of
interest payment," he said.

Garuda's total debt amounts to 794.6 mln usd. The carrier has been
facing difficulties in paying debt instalments of some 100 mln usd a
year amid increasing competition. Last December, the airline defaulted
on a 56 mln usd debt payment.

"I hope there will a constructive solution to the debt problem. And I
want creditors to share the pain," Sugiharto added.

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

The Jakarta Post
August 2, 2006

BCA shrugs off poor conditions to produce 16% first-half rise

The Jakarta Post, Jakarta

Publicly listed Bank Central Asia (BCA) managed to up both its lending
and profits for the first half of the year despite the high inflation
and interest rates that have recently been holding back the industry.

BCA, Indonesia's third biggest lender by assets, saw an increase in
its half-year profits of nearly 16 percent, the company's vice
president Jahja Setiaatmadja said Tuesday during a briefing to
investors.

The lender's unaudited net profit for the first six months ending June
30 rose to Rp 2.04 trillion (US$226 million), up from Rp 1.76 trillion
during the same period last year.

The higher profits resulted from BCA's ability to increase total
lending during 2006's first semester to Rp 52.8 trillion, up 21
percent from the same period a year earlier.

This boosted BCA's net interest income by 28 percent to Rp 4.58
trillion, while the lender also reduced costs and losses by better
managing its interest margins, as well as reviewing loans that had the
potential to turn sour.

Jahja admitted that BCA was fortunate in being able to ward off the
decline in consumer and retail-loan demand that had lately been
looming over the banking sector.

BCA's total 2005 lending amounted to Rp 54.1 trillion, up some Rp 14
trillion from the previous year.

Its net NPL ratio rose slightly to 1.7 percent from 1.5 percent in the
first quarter, although this was still far below the central bank's 5
percent maximum limit.

In terms of third party savings and deposit liabilities, these
increased by 5 percent to Rp 134.9 trillion. This puts its
loan-to-deposit ratio at 39 percent, up from 34 percent the previous
year.

Looking forward, Jahja said growth in consumer and retail lending
would still be difficult to achieve, with purchasing power yet to
fully recover after taking various hits over the last year or so.

"We are, however, still hoping that our profit growth for the full
year will prove not to be too far removed from what we achieved up to
June," he said.

BCA managed to book 12 percent growth in profits to Rp 3.59 trillion in 2005.

The bank's shares, which trade under the name BBCA on the Jakarta
Stock Exchange, closed 2.4 percent up Tuesday at Rp 4,275.

BCA joins state-owned banks Bank Mandiri and Bank Rakyat Indonesia,
and private lender Bank Niaga in managing to maintain profit growth in
the first half. State-owned lender Bank Negara Indonesia and private
banks Bank Danamon and Bank International Indonesia, meanwhile, saw
their profits decline.

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Indonesia's BCA revises down credit expansion target

JAKARTA, August 2 (Asia Pulse/Antara) - Publicly listed Bank Central
Asia (BCA) (JSX:BBCA) said it has revised down its credit expansion
target from Rp10 trillion (US$1.11 billion) to Rp5.5 trillion this
year .

Vice President of BCA Jahja Setiaatmadja said the bank decided the
revision as the condition of the country's macro economy has not
recovered.

We will be more careful in extending credits, Jahja said yesterday.

Last year, the country's fourth largest lender issued Rp14 trillion in
new credits or an increase of 13% from the previous year.

By the end of June, its outstanding credits totaled Rp52.87 trillion ,
down from Rp54.13 trillion by the end of 2005.

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Indonesia's Bank Niaga postpones plan to issue bonds this year

JAKARTA, August 2 (Asia Pulse/Antara) - Publicly listed Bank Niaga
(JSX:BNGA) has decided to postpone this year's plan to issue Rp1.5
trillion (US$165 million) worth of bonds due to unfavourable market
conditions.

Bank Niaga Director Catherine Hadiman said the bank will study the
possibility of issuing the bond next year.

Catherine said the plan to issue the bonds was not due to the need to
strengthen liquidity but to redress the mismatch between fund sources
and funding needs.

She said sources of long term funds in the bank are mainly one-month
to three-month deposits, which are not suitable to support expansion
of long term loans for housing projects.

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Lehman says buy tire-maker Gajah Tunggal's bonds

SINGAPORE, August 2 (Bloomberg): Lehman Brothers Holdings Inc.
recommends buying dollar-denominated bonds of PT Gajah Tunggal Tbk
because profit margins at Indonesia's top tire company will increase
bythe end of the year.

A JPMorgan index of high-risk, or junk, Asian corporate bonds fell
last week to the lowest in July after Hong Kong-listed Ocean Grand
Holdings Ltd. filed for court protection from creditors. Gajah
Tunggal's 2010 bond was among those that suffered, and now offers
investors good value, said Lehman'sAnnisa Lee. The bonds are rated B
by Standard & Poor's Corp., five rungs below investment grade.

"The market is going back up, you can see some buying," said Lee, a
credit analyst for high-yielding Asian company bonds in an interview
from Hong Kong. "This company has relatively less risk than other
companies with B ratings or double-digityields."

The weighted yield on the JPMorgan Asia Credit Index for corporate
junk bonds rose to 8.62 percent on July 25, the highest since January
2002. It closed yesterday at 8.41 percent.

The yield premium, or spread, for Gajah Tunggal's 10.25 percent July
2010 bond versus similar-maturity U.S. Treasuries will fall to 6.52
percentage points in six to nine months, Lee said. The gap was 8.87
percentage points as of 10 a.m. in Hong Kong, according to Lehman
prices.

Gajah Tunggal plans to spend US$170 million to build two new plants to
increase capacity to meet rising overseas demand, with $70 million
earmarked to almost triple its production capacityfor motorcycle
tires, the company said on July 31.

"Their product quality is very good," Lee aid. "Gajah Tunggal can
increase prices by up to 5 percent to 10 percent over 2006 without
losing overall tire sales."

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Three Indonesian state-owned firms plan IPO in 2007

JAKARTA, August 2 (Asia Pulse/Antara) - Three state-owned companies,
namely PT Jasa Marga, Bank Tabungan Negara and PT Indonesia Power,
plan to conduct initial public offerings (IPO) in 2007, State
Enterprises Minister Sugiharto said here on Tuesday.

"The three companies will be readied for it in the second semester,"
he said at the "Indonesia Investors Forum".

He said that in accordance with Government Regulations Number 33 of
2005, a privatization committee had been formed to determine which
company was ready to be privatized.

The committee consists of the coordinating minister for the economy,
the finance minister, the state minister for state firms and other
ministers concerned.

He said Bank Tabungan Negara was qualified to sell its shares.

"What is important is that the bank's planned IPO is not aimed at
meeting the national budget target but it intended to strengthen the
bank's capital structure," he said.

He said by increasing its capital the bank would be able to finance
its annual target of development of one million low-cost housing
units.

The proceeds from the planned IPO of Indonesia Power meanwhile would
be used to increase funding for the development of power plants to
reduce the price of electricity so that the electricity tariff would
not have to be raised.

"To this end, Indonesia Power will sell its shares through the capital
market which is considered the most efficient," the minister said.

Regarding the planned IPO of Jasa Marga, the minister said he hoped it
would improve its leverage so that it could finance around 70 per cent
of toll road development projects in the country.

"Jasa Marga's leverage is high because investment in toll road
development is huge but with continuous and fixed return of
investment," he said.

He said in the future privatization would be aimed not to meet budget
needs but solely to improve corporate condition.

"I agree with the opinion of several quarters that privatization means
foreign ownership," he said.

The aim of privatization is clear namely among others to spread
ownership but it is also meant for increasing company's performance to
improve productivity and efficiency and in turn absorb employment.

Regarding the privatization of PT Perusahaan Gas Negara (PGN), the
minister said that it had been included in the discussion of the 2006
revised budget.

"PGN has been put on the privatization list," he said but the
mechanism for it still had to be determined.

He said it was possible for PGN to conduct reloading but when and how
still had to be discussed by the committee.

The minister said the shortage of Rp3 trilion in the 2006 revised
budget was not longer a problem.

"Hopefully, it will not be difficult to cover it by the end of this
year," he said.

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Jakarta retail space market to grow 1 mln sqm 
until 2008 - Jones Lang LaSalle

JAKARTA, August 2 (XFN-ASIA) - About 1.0 mln square meters of
additional retail space will be entering the Jakarta property market
until the end of 2008, boosting the current 2 mln sqm, due to the
rapid expansion of major supermarkets and the entry of international
retail brand names, according to real estate money management and
services firm Jones Lang LaSalle.

'We expect that between 2006 and 2008, 1 mln sqm more of new retail
space will enter the Jakarta market. The rise is driven by growing
demand from retail operators as well as growth in Indonesia's consumer
sector,' Wendy Haryanto, associate director for retail leasing of
Jones Lang, told a media briefing.

She said that as of end-2000, there were only 1.0 mln sqm of modern
retail space in Jakarta. It took 15 years to develop them, she said.
An additional 1.0 mln sqm entered the market between 2001 and 2005,
she added.

'The development of the retail property sector has never been as
significant as in the last few years,' Haryanto said, adding that
growth in retail space has been boosted by the rapid expansion of
modern retailers.

She said the ratio of population and retail space in Jakarta is still
relatively high compared to those of other cities in the region such
as Manila, Bangkok, Singapore and Hong Kong. Hong Kong has a ratio of
0.7 people per sqm, Manila 3.7 people per sqm, Bangkok 2.2 people per
sqm, Singapore 1.7 pct per sqm and Jakarta 3.1 people per sqm.

'This shows that Jakarta, and Indonesia in general, still offers huge
growth potential for the retail property sector,' she said.

Spencer Roberts, Indonesia country head at Jones Lang LaSalle, said
that in the past retailers were only concentrating on major cities.
However, today a lot of them are taking the provincial areas more
seriously, he said.

'They have now spread their wings to regional areas. There is a quite
exciting time ahead for the retail market throughout Indonesia,'
Roberts said.

He said the entry of international retailers and brands have further
contributed to growth of the retail property market.

'The trend over the last few years is to have very, very successful
retail players in their home countries to spread their wings and
business. They have expanded in the last five years into the Asian
region and Indonesia is no exception,' Roberts said.

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Bisnis Indonesia
August 2, 2006

Lippo Karawaci to Develop Two Superblock At Yearend

JAKARTA: Publicly listed PT Lippo Karawaci by the end of the year will
develop two superblocks on 22 hectare-size lands located in South
Jakarta and West Jakarta.

The two projects are Kemang Village (South Jakarta) and Paragon City
(West Jakarta).

Viven G. Sitiabudi, President Director of Lippo Karawaci, revealed
that Kemang Village and Paragon City would be launched in the fourth
quarter this year.

"The two projects are very special since they will integrate
commercial area, residential areas, health-care facilities,
educational facilities, and entertainment places necessary for the
metropolitan society," Viven informed in the press release that Bisnis
received yesterday.

Viven didn't reveal how much investment was required to realize the
two projects.

In the meantime, Corporate Communication Manager of Lippo Karawaci
Danang Kemayan Jati disclosed that the investments required could
reach trillions of rupiah.

He added that the projects might require three years to realize.

According to him, the company would use IDR2.3 trillion funds
generated from the global bonds to develop the project.

"The funds generated from the issuance of yankee bond [US$250 million]
will be used to finance the projects plus funds obtained from the
pre-sales of the projects," he confided.

He stated that the superblocks were expected to start operating in
July next year.

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Indonesia's Texmaco Jaya H1 net loss 
7.08 bln rupiah vs loss 78.03 bln

JAKARTA, August 2 (XFN-ASIA) - PT Texmaco Jaya's first half to June results:

Sales - 40.26 bln rupiah vs 37.42 bln
Operating loss - 33.17 bln rupiah vs loss 45.64 bln
Net other income - 27.45 bln rupiah vs charges 26.20 bln
Net loss - 7.08 bln rupiah vs loss 78.03 bln

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Associated Press
August 2, 2006

Japan Land Prices Rise for 
First Time Since Early '90s

TOKYO -- Japan's tax agency said the average price of land rose around the 
country for the first time in 14 years, lifted by gains in Japan's three major 
metropolitan areas.

The report signals that Japanese property values are slowly rebounding from a 
slide that began in the early 1990s.

The National Tax Agency's survey found the average price of land along 
selected major streets across the country rose to 114,000 yen ($994) per square 
meter as of Jan. 1, up 1,000 yen, or 0.9%, from a year earlier. The agency 
assessed land prices at about 410,000 locations.

Higher average land prices in five of Japan's 47 prefectures combined to push 
up the national average. Those five are home to the country's three major 
urban areas, which center on Tokyo, Nagoya and the western metropolitan region 
that includes both Osaka and Kyoto.

Average land prices rose in Tokyo for a second straight year, climbing 5.4% 
to 484,000 yen per square meter. While the average land price continued to fall 
in the remaining 42 prefectures, the rate of decline slowed in 33 of those 
districts.

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Indonesian govt raises export tax on polished rattan

JAKARTA, August 2 (Asia Pulse/Antara) - The government has raised the
export tax on polished rattan from 5 per cent to 20 per cent.

The import duty on rattan hides and rattan products is unchanged from
15 per cent, the finance ministry said in a decision.

The increase effective as from July 7 in the export tax on polished
rattan is to protect domestic industry and to increase
competitiveness, the statement said.

Indonesia is the largest producer of rattan in the world.

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Indonesia, S. Koea sign MOU on forestry development

JAKARTA, August 2 (Asia Pulse/Antara) - Indonesian Forestry Minister
MS Kaban and South Korea's Forest Service (KFS) have signed a
Memorandum of Understanding (MoU) on industrial forest development and
reforestation.

The MoU was signed by Minister Kaban and KFS Chairman Suh Seung Jin in
Daejon on Tuesday (Aug 1) on the second day of Kaban`s visit in South
Korea, a statement from the forestry ministry said here on Wednesday.

The program was part of the Clean Development Mechanism (CDM) covering
a total area of 500,000 hectares in Indonesia.

Minister Kaban hoped that the cooperation would give significant
contribution to both countries' efforts to help improve the global
environment and climate.

He expressed optimism on the success of the cooperation given the fact
that South Korea has been successful in implementing the reforestation
program since 1960s.

The forestry program will be carried out by South Korea's private
companies operating Indonesia in cooperation with their Indonesian
partners.

The Korea Forest Service (KFS) is responsible for collecting the funds
for the program from various sources, among other things from giant
companies such as Samsung and POSCO.

Meanwhile, Chairman of the National Forest Cooperation Federation
(NFCF) Chang Il-Hwan said that his organization was ready to develop
industrial forests covering a total area of 100,000 hectares in
Kalimantan.

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Japan's Nihom Trim to launch bottled water ops in Indonesia

TOKYO, August 2 (Asia Pulse/Nikkei) - Water processing systems maker
Nihon Trim Co. (TSE:6788) will begin joint production and sales in
Indonesia of bottled water.

The company has founded with Indonesia's Sinar Mas Group a
manufacturing subsidiary to produce drinking water bottled in
polyethylene terephthalate (PET) bottles. The joint venture will
establish a plant on the outskirts of Jakarta on investments of about
100 million yen (US$873,000). Starting in September, the new plant
will begin production at a rate of 20 million bottles a year. It will
also assemble water-processing equipment.

The new firm is capitalized at US$2 million, or roughly 230 million
yen. The Sinar Mas Group currently has a 66 per cent stake and Nihon
Trim has the remainder. After three years, Nihon Trim plans to raise
its stake to 51 per cent.

The new firm will make use of Sinar Mas Group's sales network, which
sells products including palm oil. The joint venture will target
wealthy consumers in Indonesia through high-end supermarkets as well
as tourists, offering the product through hotel stores and guest
rooms.

The bottled water will be electrolyzed using Nihon Trim processing
equipment, which produces water with a large amount of hydrogen. Nihon
Trim sells the water in markets such as Japan and China, claiming it
has health benefits.

Nihon Trim has been developing its bottled water operations abroad,
having established a sales subsidiary in China with Sumitomo Corp.
(TSE:8053) in 2005.

The new Indonesian firm will aim for sales of 400-500 million yen in
its first year and 1 billion yen after three years.

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Indonesia's Polysindo H1 net profit 
127.98 bln rupiah vs loss 832.78 bln

JAKARTA, August 2 (XFN-ASIA) - PT Polysindo Eka Perkasa's six months
to June results:

Sales - 1.42 trln rupiah vs 1.46 trln
Operating loss - 313.19 bln rupiah vs loss 272.23 bln
Net other income - 421.74 bln rupiah vs charges 576.36 bln
Net profit - 127.98 bln rupiah vs loss 832.78 bln
Earning per share - 29 rupiah vs loss 190

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Joyo Indonesia News Service
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