[Kabar-indonesia] 18 RI Biz/Econ Reports: Agriculture on Brink of Crisis; BI 50Bps Cut? [+JSX/Rp]
JoyoNews at aol.com
JoyoNews at aol.com
Thu Aug 3 12:16:37 MDT 2006
18 Reports:
- Indonesia's agricultural sector on
brink of crisis: Legislator
- Preview: Bank Indonesia May Cut
Rate By As Much As 50Bps
- Indonesia, Germany sign 12.5 mln eur
debt swap, 10 mln eur loan/grant deals
- Indonesia Stocks End Lower; Banks,
Telekom Slide
- Indonesia Rupiah Ends Flat Ahead
Of Expected Rate Cut
- Indonesian c. bank urged to postpone
single presence policy
- Indonesia's international reserves
rise to $41.13 bln
- Indonesia says retail bond offer
attracted 1.9 trln rupiah orders as of Wed
- Indonesia's motorbike sales down
22 percent in July
- FDI in Indonesia's automotive sector
down in first half
- Indonesia's 10 largest issuers tipped to
chalk up good growth
- Indonesia Gajah Tunggal sees 2006
revenue up 15-20 pct
- Indonesia's Pupuk Kaltim to refinance
bond debt
- Numico CEO: No Mkt Share Loss Due To
Indonesia Quake
- Indonesia Adhi Karya sees net profit rising to
91.2 bln rupiah 2006 vs 77.9 bln
- Manulife Indonesia reports 20 pct rise in
premium income
- JP: 10 commodities selected for priority
export program
- NST: Firm seeks water supply concessions
in Indonesia
- More Singaporeans doing business in
Indonesia's Bintan island
Indonesia's agricultural sector on brink of crisis: Legislator
JAKARTA, August 3 (Asia Pulse/Antara) - The agricultural sector of the
country is on the brink of a crisis, a member of the House of
Representatives' Commission IV dealing with agriculture, forestry,
marine resources and fishery, said.
The legislator, Bomer Pasaribu of the Golkar Party, made the remarks
after attending a graduation ceremony held by the Academy of
Agriculture here Wednesday, adding that there had been some
indications that the agricultural sector was facing serious problems
placing it on the brink of a crisis.
"Most of those who work in the agriculture sector are now aging
people, while the remaining 20 per cent are still relatively young,"
he said.
According to him, Indonesia will have problems of manpower shortage in
the future if the condition is not solved because it is the country's
pillar as a source of foodstuffs.
Apart from the shortage of young personnel, Bomer said that the
widespread conversion of productive land into non-agriculture land, is
also a threat to agriculture sustainability.
It is estimated that 165,000 hectares of farmland had been turned into
residential areas, industries and other infrastructure projects.
"While the opening of new farmland merely reached 3,000 hectares per
year, it will not be able to compensate for the high rate of land
conversion," he said.
He said the high rate of forested land conversion in the country also
had its adverse impacts on the agriculture sector.
Every year, 2 million hectares of forests had been degraded and only
500,000 ha of which are rehabilitated.
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Preview: Bank Indonesia May Cut Rate By As Much As 50Bps
By Phelim Kyne
JAKARTA< August 3 (Dow Jones)--In line with central bank assurances
that there is "big scope" for monetary policy loosening on the back of
easing inflation, more economists expect a 50-basis-point cut in the
benchmark Bank Indonesia one-month rate next week.
Indonesia is bucking a global tightening trend by pursuing monetary
easing as a means to help jump-start faltering economic growth. Since
it embarked on its loosening in May, Bank Indonesia has cut its policy
rate twice this year.
A Dow Jones Newswires survey of twelve regional economists indicated
that seven expect Bank Indonesia next week to cut its benchmark rate,
currently at 12.25%, by 50 basis points while another four analysts
expect a more conservative cut of 25 basis points. One predicts a cut
of 25-to-50 basis points.
Most also forecast the central bank to continue loosening in the third
and fourth quarters, with the benchmark rate ending 2006 around 11.0%.
Bank Indonesia's Board of Governors will decide on possible rate moves
at a monthly meeting on Tuesday.
July's "sustained tame" inflation and healthy trade data will allow
Bank Indonesia to more aggressively cut rates on Tuesday, said Merrill
Lynch economist Arief Koeswanto Thursday in a research note.
"There is a strong chance that Bank Indonesia cuts its benchmark rate
by 50 basis points...(and) we expect a minimum 100- basis-point rate
cut during the course of the third quarter," Koeswanto said.
Koeswanto said he expected the Bank Indonesia rate to decline to 11.0%
by the end of this year.
ING also expects inflation data to help power a 50-basis-point rate
cut next week and projects the benchmark Bank Indonesia rate will
decline to 11.0% or lower by end-2006.
But Standard Chartered economist Fauzi Ichsan expects Bank Indonesia
to make a more conservative rate cut of 25 basis points on Tuesday as
part of a gradual monetary policy unwinding that will lower the rate
to 11.25% by the end of this year.
Indonesia recorded on-year inflation of 15.15% in July, markedly
slower than June's 15.53% pace, official Central Statistics Agency
data issued Tuesday indicated.
That data prompted strong hints Wednesday from Bank Indonesia Senior
Deputy Governor Miranda Gultom that the central bank plans more
aggressive rate cuts next week.
"There's 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, but didn't provide specific
projections on benchmark rate movements.
Central bank officials have reiterated in recent weeks that declining
inflation will allow them to continue unwinding monetary policy.
The latest easing cycle began in May, with a 25-basis-point cut in the
benchmark rate to 12.50%, after high inflation and high interest
rates, following a sharp government fuel price hike in October 2005,
dampened economic activity.
The central bank cut the benchmark Bank Indonesia rate by an
additional 25 basis points to 12.25% in July.
The government of President Susilo Bambang Yudhoyono has forecast
gross domestic product to grow 6.2% this year, which would outpace the
5.6% expansion in 2005. However, analysts and senior government
officials caution the forecast is too optimistic.
The economy likely expanded 4.59% on year in the first six months of
2006, Minister of Finance Sri Mulyani Indrawati said last month. That
would mark a deceleration from 6.30% growth in the same period in
2005.
FORECASTS OF BANK INDONESIA RATE MOVE ON TUESDAY
INSTITUTION CHANGE
In bps
ING -50
Credit Suisse -50
Merrill Lynch -50
IdeaGlobal.com -50
JPMorgan -50
Macquarie Bank -50
Westpac Strategy -50
Citigroup -25
Standard Chartered -25
Bank Internasional Indonesia -25
CIMB-GK Research Pte. -25 to -50
Lippo Bank -25
Policy rate is now 12.25%.
------------------------------------------
Indonesia, Germany sign 12.5 mln eur debt swap,
10 mln eur loan/grant deals
JAKARTA, August 3 (XFN-ASIA) - Indonesia and Germany have signed a
third debt swap deal worth 12.5 mln eur and a 10 mln eur new
loan/grant agreement, officials said.
A statement released by German Embassy here said the debt swap
agreement is just one component of the third debt swap deal. Another
component, focusing on nature park management for the same amount, is
still being prepared.
Under the deal, Indonesia will have to spend approximately 60 bln
rupiah to establish a revolving fund for investment in
environmentally-friendly technology. Selected national banks will
administer the fund and channel it into micro and small enterprises,
especially those facing difficulties in obtaining bank loans.
In return, German government will cancel outstanding debts amounting
to twice the sum spent by Indonesian government.
In total, Germany will cancel debts totalling 93.5 mln eur as it has
recently announced a fourth debt swap to support reconstruction
efforts following the May 27 earthquake in Yogyakarta and Central
Java.
The statement also said that the new 10 mln eur loan/grant comprises
of a 40-year loan worth 9 mln eur to improve medical services for the
poor at Dr Wahidin Hospital in Makassar, South Sulawesi and a one mln
eur grant earmarked for consultancy and training.
Separately, the Ministry of Finance's Treasury Director Mulia Nasution
said the new loan carries an interest rate of 0.75 pct and will a have
10-year grace period.
----------------------------------------
Indonesia Stocks End Lower; Banks, Telekom Slide
JAKARTA, August 3 (Dow Jones)--Indonesia shares closed lower Thursday
- reversing seven sessions of index gains - as investors sold off bank
and telecommunication blue chips.
The Jakarta Stock Exchange Composite index ended down 14.649 points,
or 1.1%, at 1379.715, off an intraday high of 1400.711. Decliners led
gainers 86 to 34, with 72 stocks unchanged.
The index had risen in the previous seven sessions on expectations the
central bank will lower interest rates next week. Analysts expect a
50-basis-point cut by Bank Indonesia to 11.75% from 12.25%, reflecting
July's benign inflation data. The bank's board of governors is
scheduled to meet Aug. 8.
Thursday, Bank Mandiri fell 1.1% to IDR1,870; Bank Central Asia was
down 2.9% to IDR4,200; and Bank Rakyat lost 2.8% to IDR4,325. Still,
analysts continue to believe lower interest rates will help the
country's banking sector.
Bellwether Telekomunikasi Indonesia ended down 1.9% to IDR7,800 after
surging 7.4% over the previous seven sessions in the wake of solid
first-half earnings.
Gains by car distributor Astra International, which rose 2.5% to
IDR10,200, helped offset the main index's decline. Astra gained on
expectations that an interest-rate cut will boost sales of its
vehicles, dealers said.
Overall, volume was 1.75 billion shares valued at IDR2.46 trillion,
compared with 1.72 billion shares valued at IDR2.0 trillion Wednesday.
Looking ahead, dealers expect shares to trade slightly lower Friday on
a continued sell-off of bank and telecommunication blue chips.
--------------------------------------------------------------
Indonesia Rupiah Ends Flat Ahead Of Expected Rate Cut
JAKARTA, August 3 (Dow Jones)--The Indonesian rupiah ended flat
Thursday as corporate dollar demand evenly balanced out inflows ahead
of a government bond sale, dealers said.
'The market story today was there was mixed trading in the market with
a lot of corporate dollar demand offset by a lot of offshore inflows
coming in for the government bond sale next week,' a dealer at a
domestic bank said.
The dollar closed at IDR9,108, unchanged from its close Wednesday.
Dealers said that although market participants have mostly priced in a
likely cut in the benchmark Bank Indonesia one-month rate at its
monthly Board of Governors meeting Tuesday, trading activity was
restrained by anticipation of the actual decision.
'People are still waiting for the actual rate cut to occur,' a dealer said.
A growing number of economists expect a 50-basis-point cut in the
benchmark Bank Indonesia rate on the back of easing July inflation, a
Dow Jones Newswires survey of economists shows.
Seven of 12 economists predicted a 50-basis-point cut in the Bank
Indonesia rate, currently at 12.25%.
With inflation easing rapidly and the rupiah appreciating by almost
3.5% against the dollar in just over a month, the central bank has
scope to cut rates by 50 basis points, a Macquarie Bank research note
said.
Dealers expect the dollar to trade in a range of IDR9,070 to IDR9,140 Friday.
-----------------------------------------
Indonesian c. bank urged to postpone single presence policy
JAKARTA, August 3 (Asia Pulse/Antara) - Bank Indonesia is urged to
postpone implementation of its single presence policy as the policy is
feared to cause potential negative impact on the economy.
The central bank has announced plan to issue a regulation banning a
banker including the government to have majority stake in more than
one bank .
Owners of majority shares in more than one bank are given time until
2008 to comply with the regulation.
They have options to comply with the rule such as by selling part or
all of their shares in other banks , merger or establishing a holding
company.
Economist from Indef Aviliani said it is not easy to follow the three
options under the present condition.
Aviliani said bankers should not be burdened with ways to comply with
the regulation while they are facing difficulty in running their
business.
She said establishing a holding company or merger will cost a lot and
may lead to dismissal of more workers.
The government itself has four banks - Bank Mandiri, Bank Negara
Indonesia, Bank Rakyat Indonesia and Bank Tabungan Negara. A number of
foreign investors also have majority shares in more than one banks
such as United Overseas Bank of Singapore.
----------------------------------------------------------------
Indonesia's international reserves rise to $41.13 bln
JAKARTA, August 3 (Reuters) - Indonesia's international reserves rose
to $41.13 billion at the end of July from $40.11 billion a month
earlier, central bank data showed on Thursday.
Bank Indonesia said on its Web site ( www.bi.go.id ) base money rose
to 251.14 trillion rupiah ($27.58 billion) at the end of last month
from 247.74 trillion in the previous month.
The figures below are in trillions of rupiah, except for international
reserves, which are presented in billions of dollars.
July 31 June 30
Base money 251.14 247.74
Net domestic assets 7.41 9.95
Net claims on government 215.70 218.03
International reserves 41.13 40.11
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Indonesia says retail bond offer attracted 1.9 trln rupiah orders as of Wed
JAKARTA, August 3 (XFN-ASIA) - The government's first retail bond
offering, called ORI-001, had attracted demand of 1.9 trln rupiah as
of yesterday, said Mulia Nasution, treasury director at the Ministry
of Finance.
The government has set a target of 2 trln rupiah for the bond issue.
The offer period ends tomorrow.
'Hopefully we will succeed' in achieving the target, Nasution told reporters.
ORI's per-unit price is set at 1 mln rupiah, with investors requiring
to place a minimum order for five units worth 5 mln rupiah.
The government is targeting retail investors, who have so far
preferred to place their money in time deposits, to switch to ORI.
Higher returns are being cited to lure investors.
Despite ORI being a relatively new product, the government had little
time to undertake proper promotion of the product, Nasution said.
He, however, would not say if the demand has not matched expectations.
ORI sales agents comprise three brokerages and eight banks.
The brokerages are PT Trimegah Sekuritas, PT Danareksa Sekuritas and
PT Valbury Asia Securities, while the banks are PT Bank Mandiri, PT
Bank Bukopin, PT Bank Permata, PT Bank Mega, Citibank, PT Bank NISP,
PT Bank Danamon Indonesia and PT Bank Panin.
The government will use the proceeds for financing its budget.
---------------------------------------------------------------
Indonesia's motorbike sales down 22 percent in July
JAKARTA, August 3 (Reuters) - Motorcycle sales in Indonesia fell 22
percent in July from the same period last year, the country's biggest
motorcycle distributor said on Thursday.
Johanes Hermawan, marketing director of PT Astra Honda Motor, told
reporters domestic sales of motorcycles by all makers fell to 369,747
units from 472,247 units in the same period last year.
Despite the year-on-year decline, domestic sales in July were higher
than the previous month's 343,399 units.
PT Astra Honda Motor, jointly owned by Japan's Honda Motor Co. and PT
Astra International Tbk , is the distributor of Honda motorcycles in
Indonesia.
Last month's number took Indonesia's total motorcycle sales in the
first seven months of the year to around 2.18 million units, down from
2.93 million in the same period last year, Hermawan said.
He added the number of Honda motorcycles distributed last month was
also down 22 percent year-on-year to 186,047 units from 238,044 last
year.
PT Astra International Tbk is controlled by Singapore's Jardine Cycle
and Carriage Ltd. .
Indonesia's auto sector is suffering from a government decision last
year to sharply hike domestic fuel prices to scale back costly fuel
subsidies following high global oil prices. High interest rates have
also hit the industry.
Motorbike sales hit a historic high of 5.07 million units last year,
when interest rates were at record low levels. Industry officials
expect sales volume to fall by 20-25 percent this year.
----------------------------------------------------------------
FDI in Indonesia's automotive sector down in first half
JAKARTA, August 3 (Asia Pulse/Antara) - Implementation of foreign
direct investment (FDI) projects in the automotive and transport
equipment sector fell to US$316.3 million in the first half of this
year from US$359.7 million in the same period last year.
In the first six months of this year there were 14 projects licensed
by the investment coordinating board (BKPM) , down from 31 projects in
the same period last year.
In June there was only one project valued at US$400,000 licensed by
BKPM or the lowest as against the highest of US$225.1 million in
January in the first six months of the year.
----------------------------------------------------------------
Indonesia's 10 largest issuers tipped to chalk up good growth
JAKARTA, August 3 (Asia Pulse/Antara) - At least 10 non bank issuers
having the highest market capitalization on the Jakarta Stock Exchange
are forecast to enjoy strong growth with an increase in income in the
second half of this year.
Two of the issuers are state companies - cement maker PT Semen Gresik
and the country's largest telecommunication company PT Telkom.
Among the ten companies only PT Astra International, the country's
largest automotive company, recorded a decline in income in the first
six months of this year.
Car and motorcycle sales have dropped sharply lately as a result of
falling purchasing power of the people.
The largest profit at Rp877.88 billion (US$97.5 million) was recorded
by Unilever Indonesia, followed by Semen Gresik's 663.45 billion.
------------------------------------------------------------------
Indonesia Gajah Tunggal sees 2006 revenue up 15-20 pct
JAKARTA, August 3 (Reuters) - Southeast Asia's largest integrated tyre
maker, PT Gajah Tunggal Tbk (GT) , said on Thursday it expects sales
revenue to rise 15-20 percent this year on a planned tyre price hike,
despite a weak auto sector.
The firm, with a market capitalisation of $195.4 million, saw its
revenue climb 14 percent in the first half of this year following a
price hike at the end of last year.
In the first half of 2006, sales revenue was 2.65 trillion rupiah, up
from 2.33 trillion rupiah. Its 2005 revenue was 4.83 trillion.
"For this year, we expect sales revenue to climb 15-20 percent,"
Catharina Wijaya, a director at Gajah Tunggal, told Reuters by
telephone.
"For the first half we have not increased the price. I expect we can
do that later in the year," she added.
Analysts polled by Reuters predicted the company, which also produces
tyres for the world's largest tyre maker, Michelin , would report an
11.6 percent increase in revenue this year.
Wijaya said the company did not plan to issue more bonds for its new
$170 million tyre plants.
The company plans to build a radial tyre factory and a motorcycle tyre
factory, which are expected to start operating in 2009. With the new
factories, the tyre maker expects to increase radial tyre output to
45,000 units per day, from 30,000 units.
"We are not going to issue more bonds for the plants. Around $100-$110
million has been financed by the bonds we issued last year and the
remaining amount will come from our internal cash," Wijaya said.
"The earliest we would come back to the market would be by mid-2007,
although it's not definite yet. It could be in bonds, equities or
syndicated loans, we haven't decided that."
Indonesia is the world's second-largest natural rubber producer after
Thailand. It exports car tyres to more than 140 countries across the
world, with its main markets being the Middle East and some African
countries.
Although the local automotive sector has slowed since a fuel price
hike last year, overseas demand for tyres has been robust.
Indonesia saw a nearly 50 percent drop in vehicles sales volume and
around 26 percent fall in motorcycle sales in the first half of 2006
due to high inflation and interest rates.
-------------------------------------------------------------
Indonesia's Pupuk Kaltim to refinance bond debt
JAKARTA, August 3 (Asia Pulse/Antara) - State owned fertilizer company
PT Pupuk Kaltim plans to refinance its bond debt of Rp600 billion
(US$66 million) hoping to reduce cost of fund.
The management of the company is studying options of issuing new bonds
or seeking loans to refinance the Rp600 billion bond, which will
mature in June next year.
Refinancing is expected to take place next year, the official who
refused to be identified sad.
Muhammad Said Didu, the secretary of the office of the state minister
for state enterprises, confirmed the report saying the company
management will decide the best option for the refinancing.
The company has used the bond fund to finance the construction of a
fourth urea fertilizer plant and working capital.
Last year the company reported a net profit of Rp550 billion.
--------------------------------------------------------------
Numico CEO: No Mkt Share Loss Due To Indonesia Quake
AMSTERDAM, August 3 (Dow Jones)--Dutch babyfood and clinical food
producer Royal Numico NV (37561.AE) Thursday said it doesn't
anticipate a decline in market share due to the earthquake that struck
Indonesia in May and affected two of its factories.
"The rebuilding of our two factories in Indonesia progressed much
faster than anticipated," Chief Executive Jan Bennink said during an
analyst meeting. [ 03-08-06 0656GMT ]
The Indonesian earthquake resulted in EUR7 million of lost sales and
EUR3 million of lost margin in the second quarter of 2006, Numico
said.
Numico expects no further material loss of sales in the third quarter
and the total costs are expected to be less than EUR10 million, of
which EUR4 million has been taken in the second quarter. [ 03-08-06
0738GMT ]
Bennink said that a recovery of the German market for clinical
nutrition is expected in early 2007.
In the first half of 2006, sales growth of Numico's clinical nutrition
operations was partly offset by its German activities, the company
said.
"Germany is important for us, but will continue to impact results in
the remainder of the year. We expect a turnaround in the first quarter
of 2007," Bennink said. [ 03-08-06 0753GMT ]
The CEO also said that Numico's research and development expenses for
its clinical nutrition unit will continue to increase in the future as
the company is investing in the development of new nutritional medical
products.
In the first half of 2006, the EBITA margin of Numico's clinical
nutrition unit was down 120 basis points to 26.1% compared to the
first half of 2005, mainly due to rising R&D costs.
Numico's Chief Financial Officer Jean-Marc-Huet said that the margin
"should go up in the future", although he declined to say when
exactly.
Numico also said that it will look into possible partnerships with
pharmaceutical companies for the commercial rollout of its Alzheimer's
product.
--------------------------------------------------------------
Indonesia Adhi Karya sees net profit
rising to 91.2 bln rupiah 2006 vs 77.9 bln
JAKARTA, August 3 (XFN-ASIA) - State-construction firm PT Adhi Karya
said it expects its net profit this year to increase to 91.2 bln
rupiah, up from 77.9 bln last year, on major construction projects
being undertaken both domestically and overseas.
It said in a statement to the Jakarta Stock Exchange that it expects
its revenue to increase to 4.41 trln this year compared to 3.03 trln a
year earlier. However it said the cost of contracts is expected to
increase to 4. 115 trln, up from 2.61 trln last year.
Its operating income is expected to reach 260 bln rupiah, compared to
174 bln a year earlier, it said.
In the first half of 2006, Adhi Karya posted a net profit of 2.26 bln
rupiah compared to 17.54 bln a year earlier, on sales of 1.54 trln
rupiah compared to 1.10 trln a year earlier.
The company said lower interest rates would further spur construction
projects early next year.
"Adhi Karya expects national private property projects (related to
high-rise buildings and malls) to start to roll over again early
2007," it said.
The company said that major projects under construction include the
Doha City Center worth 46 mln usd, infrastructure projects for the
Tangguh LNG plant worth 28 mln usd, Dumai Port -- where Adhi has a
stake of 45 pct -- worth a total of 256 bln rupiah, the Medco Tower
project worth 226 bln and infrastructure work for Heavy Oil in Duri,
Riau worth 398 bln rupiah.
------------------------------------------------------------
Manulife Indonesia reports 20 pct rise in premium income
JAKARTA, August 3 (Asia Pulse/Antara) - Canadian life insurance
company Manulife Indonesia has posted Rp790.7 billion (US$87.7
million) in gross premium income in the first six months of this year.
Individual policy holders accounted for the bulk or Rp611 billion of
the premium income, its President David Beynon said.
The performance in the first half of this year met the growth target
of 20% set for this year, compared with the same period last year.
The company would seek to expand cooperation with banks in
bancassurance, adding that this year the company hoped to have
banckassuarnce cooperation with three more banks in the country.
-------------------------------------------------------------
New Straits Times (Malaysia)
August 3, 2006
Firm seeks water supply concessions in Indonesia
CONSTRUCTION firm Gadang Holdings Bhd is actively negotiating several
existing and new water supply concessions in Indonesia, sources said.
Business Times was told that Gadang's interest in Indonesia will also
provide a platform for the group to tap the water treatment sector in
China.
A source said Gadang is exploring business opportunities in China and
it's in talks with several local parties to either partner or buy a
few water and sewerage projects and real estate projects worth in
excess of RM100 million.
"Gadang has not secured anything in China yet, but the talks look
promising and they are expected to sign some deals next year," said
the source.
The source said Gadang will spend close to RM47 million to acquire,
and then expand, two water treatment plants in Kota Tengerang in Java,
Indonesia.
Gadang is expected to buy PT Bintang Hytien Jaya early this month for
RM4 million. Upon completion of the acquisition, the group will spend
an additional RM20 million to expand the plant.
In addition, the purchase of PT Sarana Catur Tirta Kelola for RM2.71
million will be completed early next year, and as much as RM20 million
will be spent to upgrade and expand the plant.
The Hytien Jaya water treatment plant will be upgraded to a targeted
capacity of 1,050 litres/second, while the Sarana Catur plant will be
able to supply 300 litres/second of treated water to the local water
board.
Gadang will hold 95 per cent and 65 per cent of each plant respectively.
"As soon as the acquisitions are finalised, works to extend the two
plants will commence immediately and be completed by 2008. The two
plants are expected to contribute a steady revenue of more than RM30
million a year for the next 30 years to Gadang's earnings," said the
source.
------------------------------------------------------------
More Singaporeans doing business in Indonesia's Bintan island
BATAM, Kepri, August 3 (Asia Pulse/Antara) - Many Singaporean
investors are going into business in Bintan island following an
Indonesian investment opportunities exhibition in Singapore last
January, an official said.
"Every week three to four Singaporean investors apply for investment
permits, notably in the manufacturing, agro-industry and
infrastructure sectors in Bintan," Bintan district head Anshar Achmad
said.
Anshar, however, did not mention the total investment value the
Singaporean entrepreneurs have so far made in Bintan.
He said the regional administration would conduct similar exhibitions
in Kuala Lumpur, Bangkok, Hong Kong and Guangdong province in China.
Anshar expressed optimism that the exhibitions would be successful as
Bintan was actually aleady known as an attractive regin to invest in
the same way as indutrialzed Batam island was.
Bintan, he said, has built a special industrialized estate (BIE) to
support foreign investment development.
"The Bintan Industrialized Estate in the Lobam area which now
accommodates 10 factories has set up business networks in the whole
Asia Pacific region and even in the United States and Europe. Goods
produced on Bintan island are exported to those countries almost every
day," he said.
Bintan island also has the international Lagoi Tourism Resort which is
equipped with a world-class golf course and a coastal resort, he said.
President Susilo Bambang Yudhoyono inaugurated the special economic
zone and the Indonesian Special Economic Zone which covers Batam,
Bintan and Karimun islands last June 25.
The project constitutes a part of an agreement with Singapore which
was inked by Yudhoyono and Singaporean Prime Minister Hsien Long also
on June 25.
------------------------------------------
Joyo Indonesia News Service
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