[Kabar-indonesia] 18 Biz/Econ Reports: Rajawali-SG; WB US$208m for Road Project; Visa-Free Travel

[JoyoNews at aol.com]

18 Articles:

- Cemex, Indonesia's Rajawali to close 
  Semen Gresik deal on July 14 - report
- Indonesia road project gets 208 mln 
  usd loan funding from World Bank
- Southeast Asian countries to ink 
  pact on visa-free travel within region
- Financial Transaction Reports Analysis 
  Center (PPATK) seeks greater punitive 
  powers for suspicious transactions
- Jakarta waits for govt loan guarantee 
  for monorail project 
- update: Indonesia lowers rupiah deposit 
  rates, up dlr rates
- Indonesia to cancel US$250 mln in
    foreign loans
- Indonesia Govt Delays Retail Bond 
  Issue Date To Aug 9
- Bank Indonesia optimistic about reaching
    credit target
- Indonesia's Bank Bukopin sees 2006 net 
  profit at 315 bln rupiah, up 22.7 pct
- Indonesian auto sales show signs
    recovery
- Toyota retains lead in Indonesia despite
    lower sales
- Mitsubishi car sales overtake Suzuki
    in Indonesia
- India Panacea Biotec In Pact With 
  Indonesia PT Bio Farma
- Indonesia importing Indian salt to cope
   with demand
- Indonesia expects handicraft exports to
    hit US$400 mln this year
- Asian Rubber Futures Settle Up On 
  Tocom's Tech Rebound
- Indonesia palm oil market steady,
   players sidelined

Cemex, Indonesia's Rajawali to close 
Semen Gresik deal on July 14 - report

JAKARTA, July 11 (XFN-ASIA) - Mexican cement maker Cemex SA 
and PT Semen Gresik expect to close the sale of Cemex's 24.9 pct 
stake in Semen Gresik to the Rajawali Group on July 14, Bisnis 
Indonesia reported, citing an unnamed official from the Rajawali 
group.

The parties had originally hoped to complete the deal on July 10.

The Rajawali executive said the delay was agreed to allow Cemex 
and the Indonesian government to finalise key legal documents.

The documents including the cancellation of an arbitration petition
filed by Cemex against the government, the interpretation of a
conditional sales and purchase agreement (CSPA), and a shareholders'
agreement, he said.

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

Indonesia road project gets 208 mln usd loan funding from World Bank

JAKARTA, July 11 (XFN-ASIA) - The World Bank said its board has
recently approved a 208 mln usd loan to support the Indonesia
Strategic Roads Infrastructure Project (SRIP), a road expansion
project in Java and Sumatra.

It said the Indonesian government will provide the rest of the funding
for the project which is estimated to have a total cost of 287 mln
usd.

The World Bank's SRIP loan is part of its estimated 900 mln usd pledge
to the country this year through the Consultative Group on Indonesia
(CGI).

It said the project will improve and expand some 400 km of strategic
national roads and bridges and will be implemented by the Indonesian
Ministry of Public Works. Road works are expected to begin in June
2007 and will be implemented over a five-year period.

Indonesia's national road network now totals approximately 35,000 km,
including 650 km of limited-access, high-capacity toll roads.

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

Southeast Asian countries to ink 
pact on visa-free travel within region

KUALA LUMPUR, July 11 (AP) - Ten southeast Asian countries will sign
an agreement this month allowing their citizens to travel within the
region without visas, the Malaysian foreign minister said Tuesday.

Most of the 10 members of the Association of Southeast Asian currently
have bilateral agreements with some or all members of the bloc,
allowing their citizens to visit without visas.

The ASEAN Framework Agreement on Visa Exemption will group the
bilateral arrangements into a uniform rule, allowing people of the
region to visit member nations for up to two weeks without a visa,
Foreign Minister Syed Hamid Albar said.

The agreement will be signed during an annual meeting of ASEAN foreign
ministers scheduled to start July 23, he said.

The agreement will most affect communist Laos and military-ruled
Myanmar. Laos requires every visitor except citizens of Cambodia,
Malaysia, Vietnam and Singapore to have a visa while Myanmar does not
allow anyone, including citizens of ASEAN countries, to enter without
visas.

Vietnam has visa exemption agreements with all ASEAN members except
Cambodia and Myanmar. Citizens of other ASEAN countries are allowed
visa free travel for up to 30 days.

ASEAN comprises Malaysia, Singapore, Thailand, the Philippines,
Indonesia, Cambodia, Laos, Brunei, Myanmar and Vietnam.

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

The Jakarta Post
July 11, 2006

PPATK seeks greater punitive powers 

Ary Hermawan, The Jakarta Post, Jakarta

The Financial Transaction Reports Analysis Center (PPATK) has proposed the 
amending of the 2003 Money Laundering Law to give it the power to impose 
administrative sanctions on institutions and firms that fail to report suspicious 
financial transactions.

"We need that power to further improve compliance on the part of financial 
institutions," PPATK chairman Yunus Husein told a hearing with the House of 
Representatives' legal affairs commission Monday. 

According to the current law, banks, insurance firms, pension funds, finance 
firms, investment managers and currency traders are required to report all 
suspicious transactions to the agency, but some are reluctant and even afraid to 
do so in cases involving influential figures. 

Yunus said that the absence of the power to impose legal sanctions on 
uncooperative institutions had hampered the work of the agency in tracing and 
tracking money-laundering transactions. 

"Under the proposed amendments, we could fine or expose those who refuse to 
comply with the agency in the media," he said. "I think that would be quite 
effective." 

The PPATK cooperates with Bank Indonesia and the Capital Market Supervisory 
Agency (Bapepam) as the regulators in having sanctions imposed on uncooperative 
firms. 

Despite its lack of punitive powers, the agency reported that the number of 
firms that were complying with the requirement to report suspicious 
transactions had increased significantly. 

Up to June 30 this year, the agency had received reports on suspicious 
transactions from 150 institutions, 111 of which were banks. Last year, only 133 
institutions submitted such reports. 

Yunus said that the PPATK also wanted to expand the types of institutions and 
businesses required to report suspicious financial transactions. 

"Real estate firms, automobile dealers, jewelers, lawyers, and law and 
accountancy firms should also be required to report suspicious transactions," he 
said. 

He said that the proposed amendments were still being drafted by an 
interdepartmental team under the coordination of the Justice and Human Rights Ministry. 

"We are now finalizing the draft amendments. We hope that we can submit them 
to the House for deliberation this month, " Yunus said. 

The amendments are designed to expand the role of the PPATK, including giving 
it the power to freeze assets. "We have to be quick in amending the 
money-laundering legislation as Indonesia will be assessed next year by the Asia 
Pacific Group on Money Laundering (APG)," Yunus said. 

After four years of pleading by the government, the Paris-based Financial 
Action Task Force (FATF), the global money- laundering watchdog, removed 
Indonesia from its list of non-cooperative countries and territories (NCCT) in 
February last year. 

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

Jakarta waits for govt loan guarantee for monorail project 

JAKARTA, July 11 (Antara): The funding for the Jakarta monorail project 
remains unsettled because the central government has yet to provide an official 
blanket guarantee to secure a US$500 millionloan from a Dubai bank-led consortium.

Jakarta Governor Sutiyoso said Tuesday his administration was still waiting 
for recommendations from the Finance Ministry and the Coordinating Ministry for 
the Economy on the loan guarantee.

City secretary Ritola Tasmaya said he had sent letters to the ministries, but 
they had not yet replied with official responses. "The ball is in their 
hands," Ritola was quoted by Antara as saying Tuesday when accompanying Sutiyoso to 
meet with executives of Dubai Islamic Bank at City Hall.

Sutiyoso's comment contradicted a statement by Transportation Minister Hatta 
Radjasa late last month, saying the government had agreed to provide a blanket 
loan guarantee for PT Jakarta Monorail (JM).

Hatta said that based on a discussion between officials from his ministry and 
the Finance Ministry, the Jakarta administration was required to hand over 
its regional budget to the central government as collateral.

The Dubai bank syndicate has expressed its commitment to financing the 
monorail project, but it requires a blanket guarantee from the government.

JM has been urging the Jakarta city administration to provide such a 
guarantee since last year without success, as under government regulations the 
regional administration is not allowed to issue a blanket guarantee that could burden 
the provincial budget. This has stalled negotiations with the foreign 
creditors.

JM has signed contracts with a number of companies, including state-owned PT 
Adhi Karya for civil work, PT Bukaka Trans System for rolling stocks, MTRC 
Hong Kong for project management andservices integration, and MacDonald for 
independent engineers.

When up and running, the monorail will serve the business districts of the 
city with a 14.3-kilometer line, as well as a 13.5-kilometers line from Kampung 
Melayu in East Jakarta to Mal Taman Anggrek in West Jakarta. 

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

update: Indonesia lowers rupiah deposit rates, up dlr rates

JAKARTA, July 11 (Reuters) - Indonesia's deposit insurance corporation
(LPS) said on Tuesday it has cut its maximum rupiah guaranteed deposit
rates after an easing in inflation, but raised its dollar deposit
rates in line with higher global rates.

The state-run agency's moves on maximum guaranteed bank deposit rates
are closely watched by commercial banks as the decisions affect their
deposit and lending rates, critical for their profitability.

The firm's chief, Krisna Wijaya, said the maximum rupiah rate had been
cut by 50 basis points to 12 percent while the dollar rate had been
raised by 25 basis points to 5 percent for July 15 to August 14 from
the previous June 15-July 14 period.

"Commercial banks have large extra cash so they do not need to offer
high interest rates to attract depositors," Wijaya told Reuters when
asked why the rupiah rates had been lowered.

The ratio of loans extended by commercial banks compared to their
depositors' funds remained low at around 60 percent in the first
quarter of this year.

This is well below some 100 percent before the Asian financial crisis
in 1997-1998.

The lower maximum guaranteed rupiah rates follow a move by the central
bank to cut the benchmark one-month interest rate <BIPG> by 25 basis
points to 12.25 percent earlier in July following an easing trend in
domestic inflation.

The government has guaranteed bank deposits up to a certain limit to
raise confidence after massive bank runs at the height of the Asian
financial crisis.

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

Indonesia to cancel US$250 mln in foreign loans

JAKARTA, July 11 (Asia Pulse/Antara) - The Indonesian government said
it will cancel the acceptance US$250 million in foreign loans.

The loans include US$150 million for a flood control project at teh
Cisadane river, State Minister for National Development Planning
Paskah Suzette said.

Paskah said the amount of loans no longer needed is expected to
increase depending on the result of monitoring made every three
months.

The Cisadane flood control project was cancelled after local farmers
refused to hand over the land needed for the project.

The loan was approved in 1998/1999 but not yet disbursed until now.

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

Indonesia Govt Delays Retail Bond Issue Date To Aug 9

JAKARTA, July 11 (Dow Jones) -- The Indonesian government will delay
issuing its first-ever retail bonds by a week to Aug. 9 to give
selling agents more time to market the notes, a government official
said Tuesday.

The book-building effort for the three-year bonds will take place from
July 17 to Aug. 4, Rahmat Waluyanto, the director of treasury bond
management directorate at the Finance Ministry, told reporters.

Finance Minister Sri Mulyani has set the coupon rate for the bonds at 12.05%.

The yield is slightly lower than the government's existing bonds
maturing in three years held by institutional investors. Those bonds
yield around 12.36%.

The indicative size for the issue is IDR2 trillion ($220 million), but
the government has said that it won't rule out a larger amount if
demand is strong.

The offering of retail bonds is part of measures the government is
taking to develop the local bond market.

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

Bank Indonesia optimistic about reaching credit target

JAKARTA, July 11 (Asia Pulse/Antara) - Bank Indonesia expressed
optimism that it would reach its target of 18 per cent growth in
credit this year despite a slow growth of only 2.4 per cent in the
first five months.

Signs of recovery in credit extension are more obvious and it is
expected that the condition will continue to improve toward the end of
this year, Bank Indonesia Deputy Governor Maman H. Somantri said.

Maman acknowledged credit growth was low in the first quarter of this
year, but began improving in May when new bank credits reached Rp14.2
trillion (US$1.57 billion), bringing the total outstanding credit to
Rp747.6 trillion by the end of May.

Maman said the bank still had the third and fourth quarters ahead of
it to boost credits.

In order to reach the growth target of 18 per cent, credits must grow
by at least Rp19 trillion every month until the end of this year, he
said.

He said state banks had shown recovery in their intermediacy function
after being beset by growing non performing credits.

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

Indonesia's Bank Bukopin sees 2006 
net profit at 315 bln rupiah, up 22.7 pct

JAKARTA, July 11 (XFN-ASIA) - Newly-listed PT Bank Bukopin expects net
profit to rise to about 315 bln rupiah this year from 256.68 bln in
2005, paced by increased lending, finance director Tri Joko Prihanto
said.

"With loan growth of around 15 pct, we projected gross profit to reach
415 bln rupiah this year," he said, adding that after-tax income will
be around 315 bln.

At the end of 2005, Bank Bukopin's total loans reached 13.82 trln rupiah.

Prihanto has said that opening new branches will help the bank meet
its loan growth target.

At end-June, the bank's outstanding credits stood at 14.8 trln rupiah
while third party deposits amounted to 19.3 trln.

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

Indonesian auto sales show signs recovery

JAKARTA, July 11 (Asia Pulse/Antara) - Indonesian auto sales have been
rising since April this year, with sales up 6.4 per cent in June to
24,564 units from 23,022 units in the previous month, providing
optimism for a market recovery.

The increase in June was significant compared to April and May and the
trend looks likely to continue in July, chairman of the association of
motor vehicle industries (Gaikindo) Bambang Trisulo said.

Despite the rising trend sales in the first half of this year, they
were only around 50 per cent of the total sales in the same period
last year.

Based on data collected by the newspaper Bisnis Indonesia, car sales
in the first half of 2006 totaled only 149,577 units, down from
295,776 units in the same period last year.

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

Toyota retains lead in Indonesia despite lower sales

JAKARTA, July 11 (Xinhua) -- Japanese auto giant Toyota remains to be
the market leader in Indonesia although sales fell by 4.7 percent to
8,646 units in June against 9,073 a month earlier, local press
reported Tuesday.

Mitsubishi, supported by truck sales, followed second with 4, 662
units in June, up from 3,296 units in May. Mitsubishi's commercial
vehicles, including light trucks and heavy-duty trucks, totaled 4,575
units last month.

Suzuki managed to sell 3,818 units in June to rank the third, trailed
by Honda with 2,400 units, Daihatsu 1,812 units, Isuzu 1, 112 units
and Nisan at a distant seventh with 454 units, reported Bisnis
Indonesia newspaper.

National motor vehicle sales totaled 24,564 units in June against
23,022 units in the preceding month.

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

Mitsubishi car sales overtake Suzuki in Indonesia

JAKARTA, July 11 (Asia Pulse/Antara) - Mitsubishi and Suzuki are
competing closely for second position in Indonesia's car market.

Toyota remains a strong market leader with sales totaling 8,646 units
in June, or more than 30 per cent of the country's total sales of
24,564 units.

Suzuki, which had the second largest market share in May was relegated
to third by Mitsubishi in June.

Mitsubishi emerged from fourth place to become the country's second
highest dealer with sales totaling 4,662 units during the month,
eclipsing Suzuki with sales of 3,505 units.

Daihatsu, which was in sixth place in May, jumped to fifth position
behind Isuzu, which fell to sixth in June.

Daihatsu's sales rose to 1,812 units in June from 1,435 units in May,
while Isuzu sales dropped to 1,112 units from 1,625 units.

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

India Panacea Biotec In Pact With Indonesia PT Bio Farma

MUMBAI, July 11 (Dow Jones) -- Indian biotechnology company Panacea
Biotec Ltd. (531349.BY) Tuesday said it has signed a pact with
Indonesia's PT Bio Farma to manufacture and market the measles
vaccine.

Panacea Biotec will source the ingredients of the vaccine from PT Bio
Farma and make the finished product, the Indian company said in a
notice to the Bombay Stock Exchange. No financial details were given
in the notice.

"We will manufacture and supply the measles vaccine in the defined
global markets. The vaccine is expected to be commercially ready by
end 2007," Rajesh Jain, joint managing director at Panacea Biotec,
said in a statement, without elaborating.

He added that the tie-up will help boost Panacea Biotec's revenue and
profit, in addition to widening the company's product range.

The size of the global measles vaccine market is estimated at around
$25 million to $30 million annually, with demand estimated at 40
million doses annually in India.

The company plans to supply the vaccine under the World Health
Organization and Unicef's global measles reduction strategy, the
notice said.

Currently, PT Bio Farma is one of four manufacturers pre-qualified by
WHO for supply of measles vaccine to U.N. agencies, the notice said.

PT Bio Farma officials weren't immediately available for comment.

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

Indonesia importing Indian salt to cope with demand

MEDAN, North Sumatra, July 11 (Asia Pulse/Antara) - Salt imported from
India is currently "flooding" local markets as a consequece of
shortfalls in supply from Madura, Indonesia's traditional
salt-producing region, a provincial trade and industry official said.

A total of 28,060 tons of salt from India had entered North Sumatra
since last month, Bitner H Huatepea, an official at the provincial
industry and trade office said here on Tuesday. However, this salt
would only be enough to meet the province's needs for about three to
four months, he said.

North Sumatra was expected to import more salt from India to meet its
monthly demand of 8,000 tons, he said.

The first shipment of 11,000 tons of salt from India arrived at
Belawan seaport in June, and the remaining 17,060 tons is expected to
arrive on July 4, 2006, he said.

Last year, North Sumatra did not import salt from India as Madura
Island (East Java) was able to cope with demand. The province only
imported salt from Australia for industrial purposes in 2005.

PT Toba Pulp Lestari and soda industry in the province need around
2,000 tons of salt imported from Australia monthly.

Apart from the imported salt, Belawan Seaport unloaded around 51,550
tons of salt from other islands around the country this year.

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Indonesia expects handicraft exports to hit US$400 mln this year

JAKARTA, July 11 (Asia Pulse/Antara) - Indonesia expects to export
US$400 million worth of handicraft products this year, US$50 million
more than last year, chairman of the Handicraft Producers and
Exporters Association (ASEPHI) Rudy Lengkong said here on Monday.

"This year, Indonesia's handicraft exports increased slightly to
US$400 million. The slight increase is caused by the recent earthquake
which hit handicraft producing regions Yogyakarta and parts of Central
Java," he said on the sidelines of an exhibition of small-and medium
sized businesses held in Yoyakarta.

Yogyakarta has so far contributed to between five and ten per cent of
Indonesia's handicraft exports, but the quake that hit the region had
disrupted the handicraft industry.

Yoyakarta ASPHI chairperson Indah Rahayu predicted that Yogyakarta
would not be able to produce and export handicraft goods at its normal
rate in the next four months.

"Sixty per cent of Yogyakarta's handicraftsmen lived in the
most-devestated Bantul district, and they are still unable to resume
their handicraft production," she said.

About 80 per cent of Yoyakarta's total exports, or about Rp112 million
(US$12,400), comprised handicraft products.

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Asian Rubber Futures Settle Up On Tocom's Tech Rebound

SINGAPORE, July 11 (Dow Jones)--Asian rubber futures experienced a
rebound Tuesday, led by sharp gains on the Tokyo Commodity Exchange.

Tocom rubber futures settled higher on a technical rebound, while
finding additional support from gains in other commodities such as
gold and energy futures, traders said.

"Today, rubber was led by the commodity market, and it was rebounding
because it was sharply lower yesterday," said a Tokyo-based trader.

Tocom's benchmark December RSS3 contract ended Y8.6 higher at Y294.2 a 
kilogram.

The trader said the rebound will likely continue Wednesday but that
growing output in Thailand and Malaysia will cap gains.

"Tomorrow, rubber will continue to rebound, but around Y300 (the
benchmark) will be pressured by the increasing supply."

The total trading volume rose to 245,620 tons, from 204,695 tons Monday.

On the Osaka Mercantile Exchange, rubber futures ended higher,
tracking the steady gains in Tocom rubber.

The benchmark December RSS3 contract rose Y4.3 to finish at Y295.3/kg.

The backwardation spread remained little changed, with the
July-December spread ending at Y20.1, compared with Monday's Y20.9.

The trading volume more than doubled to 5,265 tons, from 2,295 tons Monday.

Rubber futures on the Shanghai Futures Exchange settled higher on
light speculative buying, as gains in Shanghai copper and Tocom lent
support, traders said.

The benchmark SCR5/RSS3 September 2006 contract rose CNY260 to settle
at CNY25,480/ton.

Overall, trading volume recovered slightly to 1,042,240 tons, from
819,880 tons Monday.

"Rubber will probably continue its consolidation around
CNY25,000/ton," said Lin Hui, an analyst at China International
Futures.

"In the meantime, we're closely watching falling cash values, which
may weigh on futures prices."

On the Singapore Commodity Exchange, rubber futures settled sharply
higher on the back of Tocom rubber's rebound.

The August RSS3 contract gained 4.25 U.S. cents to finish at 263
cents/kg, while the August TSR20 contract settled 4.75 cents higher at
236.75 cents/kg.

RSS3 trading volume fell to 1,200 tons, from 5,640 tons Monday. Volume
on TSR20 contracts also fell, to 2,520 tons, from 4,180 tons.

Asian physical rubber prices were slightly higher on Tocom rubber's
rebound, traders said.

They added that raw material supply is increasing in Malaysia and
Thailand and should be hitting peak levels soon, though Indonesia's
Palembang region, which accounts for almost a third of its production,
will remain in wintering until the end of August.

Several dealers are only offering for September/October now, while
others continue to offer only for prompt shipment, since the market is
in backwardation.

Offers for Thai RSS3 for August shipment were at 268-270 cents/kg,
little changed from 265-270 cents Monday. Thai STR20 for August
shipment was offered at 250-252 cents/kg, up from 250 cents, FOB
Bangkok.

August shipments of Indonesia SIR20 were quoted at 231.5-235.9
cents/kg, up from 229.3-230.4 cents, FOB Palembang.

Offers for August shipments of Malaysian SMR20 were at 246-247
cents/kg, compared with 245-246 cents, FOB Port Klang/Penang.

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Indonesia palm oil market steady, players sidelined

JAKARTA, July 11 (Reuters) - Indonesia's palm oil market was steady on
Tuesday, but the underlying tone remained bearish, traders said.

In a local auction in North Sumatra's Medan, crude palm oil was
unchanged from Friday at 3,920 rupiah ($0.434) a kg. There was no
local auction in Medan, Indonesia's key port for palm oil exports on
Monday.

In the state marketing centre's auction in Jakarta, CPO traded at
3,898 rupiah, down from 3,903 on Friday. The centre, which sells palm
oil from state plantations, did not hold an auction on Monday.

"Prices barely moved because all news was bearish. The rupiah is
gaining against the dollar and Malaysia palm oil futures are
sluggish," said a trader in Medan.

The Indonesian rupiah <IDR=> inched up 0.11 percent to 9,040 against
the dollar in anticipation of foreign investment into a rising bond
market.

RBD palm olein was quoted flat at 4,325 rupiah a kg in Jakarta, but no
deals reported.

"Buyers retreated from the market when Malaysia was weakening in the
afternoon. They prefer to wait to see how prices will be tomorrow,"
said a trader in Jakarta.

On the export front, sellers offered July shipment at $397.5 a tonne
and buyers bid at $390, free on board Belawan port. But no trades were
reported, indicating a slowdown in demand.

Offers for August shipment stood at $402.5. Buyers bid at $397.5, but
no deals were reported.

Offers for September shipment were steady at $405, while buyers bid at
$400, with no deals reported.

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Joyo Indonesia News Service
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