[Kabar-indonesia] 16 Biz/Econ Reports: RI may have to import rice "immediately"; Fiscal spending

[Joyo at aol.com]

16 articles compiled, selected, formatted, and
distributed by Joyo Indonesia News Service:

- Indonesia Econ Min: May Have To
  Import Rice "Immediately"

- Indonesia Lawmaker Says 2006
  Fiscal Spending Far Too Slow

- Indonesia not ready for Asean single
  market 2015: Execs ass'n

- Indonesia's Telkomsel to invest US$33.33 mln
  for 3G project

- Bakrie Sumatera to issue to $120 mln in
  bonds-report

- Stock Alert - Indonesia's Indosat lower on H1
  profit fall

- Stock Alert - Indonesia's Ciputra Development
  higher on positive H1 results

- Yudhoyono backs development of infrastructure
  in C. Kalimantan

- Japan's Mitsubishi UFJ aims to buy Indonesia's
  Bank Nusantara Parahyangan

- Indonesia's Gorontalo to produce 600,000 tons
  of maize in 2006

- Taiwan Sugar Corp to build  sugar mill in
  South Sulawesi

- Forest land in Indonesia may be reduces to
  10 pct by 2020

- Indonesia's Astra Agro 7 mths CPO output
  545,733 tons; sales 540,836 tons

- Indonesia's Bakrie Brothers H1 net profit
  87.03 bln rupiah vs loss 64.87 bln

- Indonesia's Total Persada H1 net profit
  50.83 bln rupiah vs 28.17 bln

- Indonesia's Asahimas H1 net profit
  12.79 bln rupiah vs 135.51 bln

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

Indonesia Econ Min: May Have To Import Rice
"Immediately"

JAKARTA, August 31 (Dow Jones)--Indonesia may have to
import rice immediately to supplement declining
domestic stocks, Coordinating Minister for the
Economy, Boediono, said Thursday.

"To maintain (adequate) stocks of rice which are
currently being significantly depleted, we may need to
import rice immediately," Boediono told reporters.

Rice imports may resume "in the near future," Boediono
said, without elaborating on a precise timetable.

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

Indonesia Lawmaker Says 2006 Fiscal Spending Far Too
Slow

JAKARTA, August 31 (Dow Jones)--A senior Indonesian
parliamentarian on Thursday criticized the government
for the pace of its fiscal spending in 2006.

"The government is spending far too slowly," Emir
Moeis, chief of Parliament's budget committee, said in
a speech at a Standard Chartered economic seminar.

"So far in 2006, less than 23% of the government's
development budget has been spent."

Moeis didn't provide any quantitative spending
figures.

His comments reflect growing dissatisfaction at the
snail's pace of fiscal spending this year and its
potential dampening effect on economic growth.

Minister of National Development Planning Paskah
Suzeta said earlier this month that government efforts
to increase the transparency of fiscal operations
means a total of IDR6 trillion-IDR7 trillion in
planned fiscal spending for 2006 will likely go
unspent.

Private investors and analysts say President Susilo
Bambang Yudhoyono's high-profile anti-corruption
campaign has created slowdowns in fiscal spending by
bureaucrats concerned about possible graft
allegations.

Coordinating Minister for the Economy Boediono in
April blamed bureaucratic impediments to planned
fiscal spending for slowing the pace of economic
growth in the first quarter of 2006.

The government has forecast 6.2% economic growth in
2006, outpacing last year's 5.6%, but Minister of
Finance Sri Mulyani Indrawati has said she expects a
more conservative 5.8% growth in gross domestic
product.

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

Indonesia not ready for Asean single market 2015:
Execs ass'n

JAKARTA, August 31 (Asia Pulse/Antara) - Indonesia has
yet to be one hundred per cent ready for ASEAN Single
Market 2015, Association of Young Indonesian
Businessmen (HIPMI) chairman Sandiaga S Uno said here
on Wednesday.

He noted that Indonesia had not been totally ready
because of three factors, namely high tax rates and
levy, less than optimal investment development, and
inadequate condition of infrastructure and human
resources.

With the ASEAN Single Market, he said Indonesian
products could by highly competitive with those from
other ASEAN countries, but they would be less
competitive if the tax and levy remained high.

In addition, Indonesia continued to suffer from
corruption, bureaucracy and bad infrastructure which
obstructed the products and their distribution.

"We actually have high-quality products, especially
from the natural resources and tourist sectors but
they have yet to be optimal.

Therefore, the government and the business makers
should have a good cooperation," Sandiaga said.

He expressed optimism that the ASEAN Single Market
which is to start in 2015 would serve a good
opportunity for Indonesia and its business makers to
make market breakthrough.

Therefore, Sandiaga noted that the government was
expected to be able to improve its economic policy in
a bid to encourage the business makers to do their
jobs.

He said that various existing facilities such as the
export credit would improve the competitive edge of
the national export products.

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

Indonesia's Telkomsel to invest US$33.33 mln for 3G
project

JAKARTA, August 31 (Asia Pulse/Antara) - PT Telkomsel,
the country's largest mobile phone operator, said it
will spend Rp300 billion (US$33.3 million) for its
third generation (3G) mobile phone project.

The amount, which accounts for 10 per cent of its
planned total spending this year, will be used to
build 1,300 units of base transceiver stations (BTS)
for 3G service, Telkomsel President Kiskenda
Suriahardja said.

Trial operations have been proposed for 600 units of
BTS to the Telecommunication Regulation Body (BRTI)
for Jakarta, Kiskenda said.

The remaining 700 units will be built toward the end
of this year in other large cities such as Medan,
Palembang, Bandung, Semarang, Surabaya, Denpasar,
Makassar and Balikpapan, he added.

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

Bakrie Sumatera to issue to $120 mln in bonds-report

JAKARTA, August 31 (Reuters) - Indonesian agrobusiness
firm, PT Bakrie Sumatera Plantations Tbk, plans to
sell $120 million in 5-year bonds at the end of
September to fund building a biodiesel factory and to
refinance debt, a newspaper reported on Thursday.

Bakrie Sumatera , controlled by the family of
Indonesian chief welfare minister Aburizal Bakrie, has
teamed up with PT Rekayasa Industri to build the
country's first biodiesel plant with a 60,000 to
100,000 tonnes capacity to meet a surge in demand for
renewable energy.

"We are hoping that the yield would be around 10.5
percent, although it will depend on market
conditions," Yuanita Rohali, a member of the company's
board of commissioners, was quoted by Bisnis Indonesia
as saying.

Company officials were not immediately available for
comment.

Indonesia, which is Asia-Pacific's only OPEC cartel
but has to import a quarter of its fuel needs, is
scrambling for alternative energy sources as its
hydrocarbon reserves dwindle and soaring global oil
prices increase the burden of subsidised pump prices.

In October, the government hiked domestic fuel prices
in an attempt to ease the pressure on its budget due
to a ballooning fuel subsidy bill caused by soaring
world oil prices, sending inflation to a six-year peak
and driving up interest rates.

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

Stock Alert - Indonesia's Indosat lower on H1 profit
fall

JAKARTA, August 31 (XFN-ASIA) - PT Indosat, a 40.77
pct owned unit of Singapore Technologies Telemedia,
fell in early trade after the firm announced weak
first half to June results, dealers said.

The stock was down 175 rupiah or 3.7 pct at 4,550.

Indosat said late yesterday that its first half net
profit fell 30 pct year-on-year to 548.8 bln rupiah,
pressured by weak sales and rising costs.

Sales reached 5.77 trln rupiah, down from 5.78 trln a
year ago while operating expenses rose to 4.20 trln
rupiah from 3.86 trln.

"The results are disappointing and I guess people are
not only concerned with the profit fall but probably
more the weak sales," a dealer with a state brokerage
said.

"The question going forward is whether or not Indosat
earnings will recover in the second half. If investors
believe so, then they may see any further stock price
fall as an opportunity to accumulate," he added.

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

Stock Alert - Indonesia's Ciputra Development higher
on positive H1 results

JAKARTA, August 31 (XFN-ASIA) - PT Ciputra Development
rose in early trade after reporting that its first
half to June net profit jumped by more than 2,000 pct.

Net earnings in the half increased to 695.28 bln
rupiah from 31.64 bln rupiah the year earlier, boosted
by extraordinary gains of 627.69 bln rupiah, from nil
in the previous year.

The jump in net profit was also supported by a sharp
rise in sales to 736. 18 bln rupiah from 390.49 bln.

At 9.58 am, Ciputra Development was up 10 rupiah, or
1.75 pct, at 580 on volume of 30.82 mln shares.

The composite index was up 6.646 points, or 0.47 pct.
at 1431.871.

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

Yudhoyono backs development of infrastructure in C.
Kalimantan

PALANGKARAYA, August 31 (Asia Pulse/Antara) -
President Susilo Bambang Yudhoyono said he fully
supported the plan of the Central Kalimantan
government to prioritize the development of the
infrastructure sector in that region.

"The construction of infrastructure projects
especially roads and railway tracks in Central
Kalimantan should be given priority," the president
said a few moments before a get-together with local
leaders and high ranking officials of the province and
districts here on Wednesday evening.

The head of state said that in the next two months
starting from now, the Central Kalimantan Governor and
the relevant circles should come to the presidential
palace in Jakarta to elucidate the infrastructure
development plan with a view to discussing its
realization in connection to the allocation of fund
for the projects.

"I have asked for a plan to build infrastructure like
roads, railway tracks, airports, harbours and other
important infrastructure projects," he said.

The head of state also expressed his optimism that if
the development of the infrastructure sector in
Central Kalimantan could be accelarated, it will make
tremendous progress on account of the huge area,
mining potentials and plantations in the region.

The president, who is planing to conduct a grand
harvest in peatland in Kapuas district, on Thursday,
reminded that the development of infrastructure should
not damage the environment.

In the meantime, Vice President Jusuf Kalla invited
foreign investors to participate in the construction
of infrastructure projects in Indonesia, including
toll roads and power plants.

He said recently that the Indonesian government would
open wide opportunities for foreign investors for the
construction of hundreds of kilometers of toll roads,
power plants and other infrastructure projects.

"Despite the conflicts in several parts of the
country, Indonesia has become increasingly conducive
to investment," he told dozens of ASEAN business
leaders participating in the forum.

The Indonesian government has revised several
regulations on taxation, infrastructure development
and bureaucracy to make foreign investors more
interested in doing business in Indonesia, according
to Jusuf Kalla.

The government is currently striving to further
improve security stability to expedite the inflow of
investment and the process of development in the
country, he revealed.

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

Japan's Mitsubishi UFJ aims to buy Indonesia's Bank
Nusantara Parahyangan

TOKYO, August 31 (XFN-ASIA) - Mitsubishi UFJ Financial
Group Inc, the world's largest bank by assets, said it
is aiming to take control of PT Bank Nusantara
Parahyangan to tap the growing Indonesian retail
market.

Bank of Tokyo-Mitsubishi UFJ, the group's commercial
bank, together with consumer credit affiliate Acom Co.
will enter talks with existing shareholders in the
Indonesian bank with a view to completing a deal by
year-end, the two Japanese firms said in a joint
statement issued late yesterday.

'The retail financial market in Indonesia, Southeast
Asia's most populous country, is expected to grow.
Through cooperation and by combining the expertise of
Acom and The Bank of Tokyo-Mitsubishi UFJ, business
growth is expected, especially in the loan business,'
the statement said.

'A purchase of shares is expected to be completed by
the end of 2006.'

Bank Nusantara Parahyangan, based in Bandung,
southeast of the Indonesian capital Jakarta, was
established in January 1972 and now has about 312 mln
usd in assets and 540 employees.

Mitsubishi UFJ Financial Group Inc was formed last
year through a merger between Mitsubishi Tokyo
Financial Group and loss-making UFJ.

It has a strategic and capital alliance with Acom Co.

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

Indonesia's Gorontalo to produce 600,000 tons of maize
in 2006

JAKARTA, August 31 (Asia Pulse/Antara) - Gorontalo
province on Indonesia`s Sulawesi island plans to
produce 600,000 tons of maize this year, Gorontalo`s
Regional Development Planning Board chairman Winarni
Nonoarfa said here on Wednesday.

"Gorontalo`s maize production has continued to
increase from year to year. Therefore, the production
target this year should also be increased," he said.

Monoarfa said that Gorontalo produced 70,000 tons of
maize in 2001, rising to 400,000 tons in 2005.

The Gorontalo regional administration will shortly
develop a maize seedling center and agro-clinical
center to be manned with agricultural scholars.

"With these centers, it is expected that the maize
production in Gorontalo would continue to increase. Up
to now, this province has been developing 25 different
varieties of maize," he added.

He said Gorontalo needed to improve its
infrastructure, such as maize warehouse and containers
in order to increase its maize exports to Malaysia and
Japan.

"The number of our containers and warehouses is still
not enough to accommodate production," he added.

So far this year, Gorontalo has shipped 100,000 tons
of maize worth US$23 million to Japan.

Besides Japan, Gorontalo is also targeting Malaysia,
South Korea and the Philippines as its export
destinations.

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

Taiwan Sugar Corp to build sugar mill in South
Sulawesi

MAKASSAR, S Sulawesi, August 31 (Asia Pulse/Antara) -
Taiwan's leading sugar company Taiwan Sugar
Coroporation (TSC) is planning to build an
export-quality sugar mill in Indonesia's South
Sulawesi province this year with an investment of
about Rp1 trillion (US$110 million).

"TSC's team has conducted field surveys in several
districts to find suitable land for sugarcane
plantations. It turned out that South Sulawesi has
vast land, and we decide to build a plant here to
produce sugar," TSC President Director Cheng Hsieh Yu
said.

Cheng Hsieh Yu, accompanied by Vice President Yusuf
Kalla's expert staff HM Alwi Hamu, met with South
Sulawesi Governor HM Amin Syam here on Wednesday to
report on his plan to build a sugar factory.

The TSC team found that the land which has the
potential of being developed as sugar cane plantations
was found in the districts of Wajo, Soppeng and
Sidrap.

"I am interested in the still uncultivated vast land
and we will cultivate it productively for sugar cane
plantations," Cheng Hsieh Yu said.

He said his company needed some 100,000 hectares of
land for sugar cane plantations in order to meet the
sugar plant's need for raw materials.

Cheng, whose company has 46 sugar mills in his
country, did not reveal the capacity of the sugar
factory he was willing to build in South Sulawesi.

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

Forest land in Indonesia may be reduces to 10 pct by
2020

JAKARTA, August 30 (Asia pulse/Antara) - Forested land
in Indonesia would be reduced to 10 per cent by 2020,
a forestry ministry official said here on Wednesday.

The director of forest protection and examination,
Noor Hidayat, said it was predicted that by 2020 the
country's forests would cover only 10 per cent of
land.

He said "following the implementation of regional
autonomy the authority to issue forestry licenses is
in the hands of district heads who often do not
implement it correctly making it frequently being
exploited by certain parties affecting forest
sustainability."

He said out of 120.35 million hectares of forests, at
present around 59.6 million hectares had been damaged
and could not function optimally.

He said the high rate of deforestation followed the
increasing illegal loggings, conversion of forest
land, forest destruction and forest fires.

"If the activities continue our forestland will be
smaller and its effect will be on various sectors," he
said.

He said his office had taken various steps to reduce
the rate of deforestation such as fighting illegal
logging and campaigning on the importance of managing
the forests sustainably.

"We have also developed industrial forests to promote
sustainable forest management efforts," he said.

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

Indonesia's Astra Agro 7 mths CPO output 545,733 tons;
sales 540,836 tons

JAKARTA, August 30 (XFN-ASIA) - PT Astra Agro Lestari
said it produced 545,733 tons of crude palm oil (CPO)
in the first seven months of the year, up 14 pct
year-on-year.

In the period, palm fruits output rose 8 pct to 2.2
mln tons, with production yields rising 8.3 pct to
11.7 tons per hectare, Astra Agro said in a
statement..

It said high grade CPO, made up 55.6 pct of its total
output.

In the seven months, CPO sales rose 19.2 pct to
540,836 tons, with exports contributing 180,752 tons,
up 42 pct .

Astra Agro said the average CPO selling price received
was up 2.2 pct at 3, 360 rupiah per kilogram, while
the global CPO price in Rotterdam rose 6 pct to 442
usd per ton.

The firm recently raised its CPO output target for
this year to 965,000 tons from 950,000 tons
previously.

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

Indonesia's Bakrie Brothers H1 net profit 87.03 bln
rupiah vs loss 64.87 bln

JAKARTA, August 31 (XFN-ASIA) - Diversified
conglomerate PT Bakrie Brothers' first half to June
results:

Sales - 2.14 trln rupiah vs 1.13 trln Operating profit
- 275.27 bln rupiah vs 44.71 bln Net other charges -
70.34 bln rupiah vs charges 159.84 bln Net profit -
87.03 bln rupiah vs loss 64.87 bln Earnings per share
- 3.23 rupiah vs loss 5.39

The company said comparative figures were restated.

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

Indonesia's Total Persada H1 net profit 50.83 bln
rupiah vs 28.17 bln

JAKARTA, August 31 (XFN-ASIA) - Construction firm PT
Total Bangun Persada's first half to June results:

Sales - 560.40 bln rupiah vs 539.77 bln Operating
profit - 69.74 bln rupiah vs 35.02 bln Net profit -
50.83 bln rupiah vs 28.17 bln

Earnings per share - 20.75 rupiah vs 11.50

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

Indonesia's Asahimas H1 net profit 12.79 bln rupiah vs
135.51 bln

JAKARTA, August 31 (XFN-ASIA) - PT Asahimas Flat
Glass' first half to June results:

Sales - 740.79 bln rupiah vs 846.36 bln Operating
profit - 20.54 bln rupiah vs 198.20 bln Net profit -
12.79 bln rupiah vs 135.51 bln Earnings per share - 29
rupiah vs 312

Asahimas Flat Glass is a 43.85 pct-owned unit of
Japan's Asahi Glass Co Ltd.

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Joyo Indonesia News Service
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