[Kabar-indonesia] 23 RI Biz/Econ Reports: Rate Cuts; FDI in Jakarta Plummets; Gresik; Plywood

[JoyoNews at aol.com]

23 Reports:

- Indonesia c.bank sees room to cut 
  rates further
- Indonesia govt to speed up tax rebate
     process to 2 months from 10
- Foreign investment in Jakarta plummets
    in H1
- Indonesian plywood can't compete in
    international market: Official
- Indonesia Stocks Close 1.4% Higher; 
  Bank Blue Chips Rally
- Indonesian Rupiah Ends Up On Continued 
  Impact Of S&P Move
- Indonesia's Semen Gresik 147.69 mln 
  shares crossed at 20,050 rupiah each
- Indonesia Sampoerna's new US$307m plant 
  will boost its capacity by 9 billion sticks a year
- Indonesia to benefit from EU's anti-dumping
    policy on China footwear
- Indonesia July car sales seen at 
  26,000-27,000 units vs 24,564 in June - report
- Indonesia's FMGI mulling formation of sugar fund
- Jakarta bourse to delist Bukaka end-July unless
     latest financial report filed
- Indonesia's Palyja 49 pct stake sold 
  by Suez to Astratel, Citigroup
- Indonesia's Adhi Karya eyeing more
    mideast projects
- Indonesia's Adhi Karya postpones
    rights issue
- Indonesia's Total Bangun Persada eyes 31
    projects this year
- Indonesia to open tenders for Java toll
    road construction
- Holcim Indonesia plans to build new cement
    factory in East Java
- Indonesia's Semen Kujang to request JIBC
    to reschedule debt
- Indonesia's Lion Air vows tariff cut with
    new planes
- Indonesia's Lippo Karawaci H1 net profit
    175.0 bln rupiah vs 171.31 bln
- Indonesia's Bimantara Citra H1 net profit
    159.77 bln rupiah vs 6.16 bln
- Indonesia's Media Nusantara Citra 230 mln
    usd bonds rated '(P)B1' - Moody's

Indonesia c.bank sees room to cut rates further

By Adriana Nina Kusuma and Muhammad Ari

JAKARTA, July 27 (Reuters) - Indonesia's central bank has room to cut
interest rates further due to an expected easing in inflation and may
consider a reduction of 50 basis points in one go, a senior deputy
governor said on Thursday.

The remarks came the day after Standard & Poor's upgraded Indonesia's
long-term currency ratings because of its improving fiscal position.

"There is room for interest rate cuts as inflation is expected to
ease," the central bank's senior deputy governor, Miranda Goeltom,
told reporters.

"There has been no (market) volatility and shocks after cutting
interest rates twice by 25 basis points each," she said. "Our foreign
currency rating has even improved, that means we have room to loosen
(monetary policy) at a faster pace."

Standard & Poor's upgraded Indonesia's long-term foreign currency
rating by one notch to 'BB-', still three notches below investment
grade, while the long-term local currency rating was raised by one
notch to 'BB+', one notch below investment grade.

Bank Indonesia (BI) is expected to review its rate policy on Aug. 8
while the statistics bureau is scheduled to release July inflation
data next Tuesday.

The central bank cut the key BI rate <BIPG> by 25 basis points to
12.25 percent this month. That followed a cut of the same size in May,
the first reduction after a series of increases since the rate was
introduced at 8.5 percent in July 2005.

The benchmark rate had been pushed sharply higher to support the
rupiah and fight inflation, which hit a six-year high of 18.4 percent
in November when it jumped after a massive fuel price rise. Annual
inflation stood at 15.5 percent in June.

Indonesia has some of the highest interest rates in Asia, which has
crimped consumption and slowed growth in the country of 220 million
people.

Annual economic growth in the first quarter slowed to 4.6 percent, its
weakest pace since June 2004.

Analysts said the time was right for a rate cut because of improving
market sentiment and higher credit ratings.

"It is definitely a very comfortable position for BI to cut rates.
More importantly there is a recent BI survey that corporates find
lending rates too high," said market analyst Patricia Lui of Informa
Global Markets in Singapore.

"BI knows they discourage people from borrowing money, which means
this could impact the economy. It is kind of forcing the bank to do
something," she said.

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

Indonesia govt to speed up tax rebate process to 2 months from 10

JAKARTA, July 27 (XFN-ASIA) - The government will speed up the tax
rebate process to two months from 10 months currently to help shore up
companies' cash flow, Finance Minister Sri Mulyani Indrawati said.

"The government will speed up the tax rebate process to only two
months from 12 months at present," the minister said, adding however
that the length of the process would depend on the availability of
required documents provided by the taxpayers.

She said the ministry expects to finalise the tax rebate ruling over
the next week or two.

In the first five months of this year, Indrawati said the government
paid 5-6 trln rupiah in tax rebates.

Businessman Sofyan Wanandi, founder of conglomerate Gemala Group, said
after a meeting with the finance minister that speeding up the rebate
process would be a boon to companies, particularly those with cash
flow problems, "given the current high interest rate environment."

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Foreign investment in Jakarta plummets in H1

JAKARTA, July 27 (Asia Pulse/Antara) - Foreign investment approvals in
Jakarta in the first semester of 2006 amounted to US$590.46 million,
decreasing by 63.5 percent from US$1,617.23 million in the same period
last year, an official said.

"The significant decrease in the foreign investment sector may
possibly be attributed to a decline in foreign investors' inconfidence
in Indonesia not to mention the foreign media's excessive reports on
instability in the country," Jakarta city administration's investment
body and wealth/provincial business empowerment office head Syamsul
Hadi said here Thursday.

The number of foreign investment projects in the first semesetr of
2006 totalled 340, much lower than 420 in the same period last year.

Syamsul Hadi said the decrease in the foreign investment could not be
separated from the investment climate in Jakarta which had not been
supported by the relevant government agencies.

He cited a complicated bureaucracy to obtain business permits.

This year China was the largest investor in Jakarta where it had 24
projects with a total investment value of $282.8 million while last
year China was the fifth largest investor in the capital city, he
said, adding that Britain was the biggest investor in Jakarta last
year.

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Indonesian plywood can't compete in international market: Official

JAKARTA, July 27 (Asia Pulse/Antara) - Indonesian plywood has not
benefitted from favourable international market conditions including
higher prices because it cannot compete with products from other
countries, an industy spokesman said.

"The plywood price in the international market currently reaches
US$750 per cubic meter, but Indonesia has not been able to gain any
benefit from this fact because it has been unable to compete with
other countries," Sudradjat DP, the chairman of the Indonesian
Forestry Community (MPI), told ANTARA here on Thursday.

The price of plywood in the international market has recently jumped
to US$750 from US$500, he said.

"However, Indonesian businessmen cannot enjoy the price increase due
to supply problems and the obsolete condition of their machinery,"
Sudradjat said.

He said up to US$500 million is needed to replace the old machineries
of about 50 plywood manufacturers in Indonesia.

He called on the government to encourage banks to provide loans for
the domestic plywood industry.

"Restructuring the machineries is crucial because most of the
Indonesian plywood companies' machineries are above 20 years old. It
makes the companies inefficient and less competitive," he said.

Another problem facing the national plywood industry is scarcity of
raw materials.

MPI has called on the forestry ministry to increase the quota of
logging for the industry, from eight million cubic meters in 2006 to
10 million cubic meters in 2007, an increase of 20 per cent.

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

Indonesia Stocks Close Higher; Bank Blue Chips Rally

JAKARTA, July 27 (Dow Jones)--Indonesia shares closed higher Thursday
led by gains in bank blue chips on expectations that the central bank
will continue to cut its benchmark interest rate due to the firmer
rupiah, dealers said.

The Jakarta Stock Exchange Composite index ended up 17.762 points, 
or 1.4%, at 1330.592.

Volume was 1.55 billion shares valued at IDR4.9 trillion, compared
with 864 million shares valued at IDR1.02 trillion Wednesday.

Traders said the increase in value was mostly due to cross trade of a
24.9% stake in cement maker Semen Gresik. Indonesia Rajawali group
bought the Gresik stake from Mexico's Cemex SA for $337 million early
this week.

"The market also welcomed a statement from Bank Indonesia on the
rating upgrade by S&P which opens room for the central bank to cut its
key interest rate," said a trader with BNI Securities.

Bank Indonesia Deputy Governor Miranda Gultom said the rating upgrade
would pave a way for easing monetary policy in the future.

The dollar closed lower Thursday at IDR9,070, compared with
Wednesday's close at IDR9,090.

Bank Mandiri, the nation's largest bank by assets, rose 3.7% to
IDR1,700, Bank central Asia, the second largest bank, gained 3.9% to
IDR4,050 and Bank Rakyat, the fourth largest, ended up 7.6% to
IDR4,275.

Also higher was car distributor Astra international, up 2.7% to
IDR9,600 on hopes that the firmer rupiah will ease its cost of
imported raw materials.

On the downside, gas distributor Gas Negara lost 4.7% to IDR11,050 on
profit taking.

Dealers expect shares to trade higher Friday on further buying in bank
blue chips.

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

Indonesian Rupiah Ends Up On Continued Impact Of S&P Move

JAKARTA, July 25 (Dow Jones)--The rupiah ended higher Thursday on
continued capital inflows following a move by Standard and Poor's
Ratings Services to raise Indonesia's sovereign ratings Wednesday,
dealers said.

'Foreign funds increased their investment here on the ratings
upgrade,' a dealer with a large European bank based in Jakarta said.

The dollar closed at IDR9,070, down from its close Wednesday at IDR9,090.

The rupiah had closed stronger Wednesday as well, after S&P raised
Indonesia's long-term foreign currency rating to BB- from B+ and the
long-term local currency rating to BB+ from BB. It affirmed the
short-term rating of B and said the outlook on the long-term rating
was stable.

Dealers said that foreign investors likely parked their money in local
stocks and bonds. The Jakarta Stock Exchange's main index closed up
1.4%.

Bond prices were mostly higher. The yield on the government's
three-year bonds slid to around 11.5% from 11.6% Wednesday, dealers
said.

Dutch bank ING said in a report Thursday that it views Indonesian
local currency bonds as attractive for investors who can tolerate
currency volatility.

'We consider Indonesia a solid BB- credit,' it said.

Bank Indonesia's senior deputy governor Miranda Gultom told reporters
Thursday that the S&P move gives Bank Indonesia greater scope to ease
its monetary stance in the future.

Dealers said that rate cuts may attract foreign funds into Indonesian
stock and bond markets, which would in turn help boost the rupiah's
value.

Dealers expect the dollar to trade between IDR9,050 and IDR9,100 Friday.

They expect local importers to bid for dollars on any slide, while
market participants would be happy to sell the greenback on a rise.

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

Indonesia's Semen Gresik 147.69 mln shares crossed at 20,050 rupiah each

JAKARTA, July 27 (XFN-ASIA) - A total of 147.69 mln shares of PT Semen
Gresik were crossed at 20,050 rupiah each by JP Morgan Securities
Indonesia, dealers said.

The transaction was made to execute the sale of Cemex SA's 24.9 pct
stake in Semen Gresik to the Rajawali Group, they said.

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

Indonesia Sampoerna's new US$307m plant will 
boost its capacity by 9 billion sticks a year

KARAWANG, Indonesia, July 27 (Reuters) - Indonesia's second-largest
listed tobacco firm, PT Handaya Mandala Sampoerna Tbk , said on
Thursday the new 2.8 trillion rupiah ($307.7 million) factory would
increase the company's machine-rolled cigarette output by 9 billion
sticks per year.

It said the factory, which would be located in Karawang, east of
Jakarta, would also be able to produce 15 tonnes of tobacco and clove
mixture per hour, which could be used for the production of 7.5
million sticks of hand-rolled cigarettes.

"The funding for this factory would come from our internal resources.
There's no new borrowing for this project," Angky Camaro, a director
of the company, said during the inauguration of the construction
process of Sampoerna's new plant.

The company, nearly 100 percent controlled by Philip Morris
International, the tobacco arm of Altria Group , has total capacity to
produce 50 billion sticks of cigarettes. It sold 49.4 billion sticks
last year.

Sampoerna, the sixth-largest capitalised firm in the Jakarta exchange,
had said it obtained the approval to build the factory from
Indonesia's Investment Coordinating Board (BKPM) earlier this month
and the plant would take 24 months to be completed.

The company has a market capitalisation of nearly $3.8 billion,
representing some 3.88 percent of the weight of the Jakarta Composite
Index.

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

Indonesia to benefit from EU's anti-dumping policy on China footwear

JAKARTA, July 27 (Asia Pulse/Antara) - Indonesia will have a chance to
increase its footwear exports to the European Union (EU) if the latter
applied anti-dumping or limited quota policies to China and Vietnam,
Industry Minister Fahmi Idris said.

"The European Union will decide next October or November whether or
not to apply anti-dumping policy. If it does, Indonesia will have an
opportunity to step up its footwear exports to the EU," Fahmi quoted
as saying by Textile Machine Metal and Multifarious Industries
Director General Ansari Bukahri at the opening of a Leather and
Footwear Industry exhibition here Wednesday.

China, he said, exported 210 million pairs of shoes to Europe out of
its total production of 250 million pairs of shoes last June.

China was predicted to produce 500 pairs of shoes in July and Vietnam
150 pairs which would be exported to the European Union as well.

If the EU decided to impose ant-dumping policies on China and Vietnam
later this year, the rules would be valid for five years but if not,
Indonesia would only have a chance of about two years to export
footwear to Europe, the director general said.

Indonesia, he said, had over 100 leather factories in Jakarta, West
Java, Banten, Central Java and South Sulawesi which provided job
opportunities for about 6,000 people.

The government would, therefore, was continuing to support efforts to
increase footwear production by providing technology and human
resources so that entrepreneurs Would be able to compete in global
markets, he said.

Meanwhile, Indonesian Footwear Association (Aprisindo) Chairman Eddy
Wijanarko said the country?s footwear export was expected to earn
US$1.7 billion this year or increase from $1.5 billion last year.

EU cooperation with Indonesia dated back to the 1970s with the
cooperation formalized under the 1980 EEC-ASEAN agreement.

Trade relations between the Indonesia and the EU are among the most
important of all the South East Asian countries. Due to Indonesia?s
export diversification policy (from agricultural products and raw
materials towards durable consumer goods such as textiles, shoes,
furniture and electronics), the EU became Indonesia's second largest
trading partner (after Japan), and is the main destination for
Indonesia's exports of manufactured goods (oil and gas excluded).

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

Indonesia July car sales seen at 26,000-27,000 
units vs 24,564 in June - report

JAKARTA, July 27 (XFN-ASIA) - Domestic car sales are forecast to rise
to 26,000-27,000 units in July from 24,564 in June, extending a
rebound over the past three months, Bisnis Indonesia reported, citing
Indonesian Automotive Industries Association (Gaikindo) chairman
Bambang Trisulo.

He said the rebound is expected to be sustained in the coming months.

Full-year sales, however, are unlikely to exceed the industry's
forecast of 330,000 units, which were 38 pct lower than the 534,000
recorded in 2005, he said.

Gaikindo has said that local sales in the first half reached 149,634
units, down 49 pct from 295,779 vehicles a year earlier.

Trisulo said the industry outlook is now clouded by concerns over high
oil prices during the past few weeks amid tensions in the Middle East.

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

Indonesia's FMGI mulling formation of sugar fund

JAKARTA, July 27 (Asia Pulse/Antara) - The Indonesian Sugar Community
Forum (FMGI), an organization comprising government, sugar cane
producers, farmers and distributors representatives, is considering
the establishment of a sugar fund in cooperation with banking and
non-banking financial institutions, a spokesman said.

"We have contacted a number of state and private banks like BRI,
Bukopin and Artha Graha and they have expressed their interest in
taking part in the financing of the sugar industry," Agus Pakpahan,
deputy minister at the State Enterprises Ministry (BUMN), said at the
launching of FMGI here on Tuesday.

He said the country`s sugar industry so far relied much on financing
and investment system managed by banks.

"We feel the cost we must bear is very high. Hence we must consider
this idea seriously so that we will have the capability to finance and
invest in accordance with our business," Agus, who is also the FMGI
chairman, added.

He said the forum was still discussing the concept to develop a sugar fund.

Rooted in agriculture, Rabobank is set up as a federation of local
credit unions, which offer services to the local markets.

He also said the FMGI is a forum to coordinate and synergize all the
activities the sugar cane players to achieve sugar cane
self-sufficiency.

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

Jakarta bourse to delist Bukaka end-July unless latest financial report filed

JAKARTA, July 27 (XFN-ASIA) - The Jakarta Stock Exchange (JSX) said it
will delist PT Bukaka Teknik Utama if the latter fails to submit its
latest financial report with an unqualified opinion from its auditor
by the end of this month.

Bukaka is chaired by Vice President Jusuf Kalla's brother Achmad Kalla
as president director and Suhaeli Kalla as chief commissioner.
However, it is unclear how much stake the Kalla family still holds in
the company.

Bukaka's financial reports for the last six consecutive financial
years from 2000 to 2005 have all had a disclaimer opinion from its
auditor.

'We therefore urge the company to take the necessary action
immediately to avoid the delisting,' JSX said in a statement.

Established in 1978 , Bukaka has engaged in various businesses ranging
from engineering and design to infrastructure, telecommunications and
power plants.

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

Indonesia's Palyja 49 pct stake sold by Suez to Astratel, Citigroup

JAKARTA, July 27 (XFN-ASIA) - Suez Environment, a unit of diversified
industrial group Suez SA of France, says it has completed the

sale of its 49 pct stake in its fully-owned Indonesian unit PT PAM
Lyonnaise Jaya (Palyja) to a local partner, PT Astratel Nusantara, and
to Citigroup Financial Products Inc.

Astratel Nusantara is a subsidiary of Astra International.

In a statement, Suez Environment said the number of shares sold to
Astratel and Citigroup represent 30 pct and 19 pct of Palyja
respectively, while Suez's stake has been cut to 51 pct.

Palyja president Thierry Krieg said the stake sale was undertaken to
help strengthen Palyja's performance in providing clean water to its
customers in Jakarta.

'By having a competent local shareholder in the infrastructure sector,
it is expected that Palyja will be strengthened to face challenges in
the future,' Krieg said.

'The share sale transaction was done in compliance with the existing
rules,' he added.

The company said since 1998, Palyja has invested almost 1 trln rupiah
in its business, with the biggest percentage of investment going to
the pipe network rehabilitation and expansion of Palyja's service area
which covers more than 1,606.2 km.

In 2006, the company booked revenue of 649 bln rupiah and counted
344,368 customers.

'Palyja represents an opportunity as an entry point into Indonesia's
water infrastructure sector that we expect will require more private
sector participation in the future, ' Astratel president Angky
Tisnadisastra said, commenting on the stake purchase.

Suez Environment did not disclose the value of the stake sale.

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

Indonesia's Adhi Karya eyeing more mideast projects

JAKARTA, July 27 (Asia Pulse/Antara) - State-owned construction
company PT Adhi Karya Tbk (JSX:ADHI) plans to seek more projects in
the Middle East after winning a Hotel Shangrila construction project
in Qatar.

"We are indeed eyeing more projects in the Middle East because the
opportunity is big," its president director, Saiful Imam, told newsmen
recently.

He said the company still had six months to strive to win projects in
the region but he declined to name the projects.

"Later if we win we would make them known," he said.

He said projects in the Middle East contributed much to the company`s
profit in 2006.

PT Adhi Karya this year won a railway project in India worth Rp1
trillion (US$109.5 million) for a three-year period.

He said the project in the Middle East would be worth less than Rp1
trillion but in 2007 the company would possibly venture on projects
worth more than Rp1 trillion.

One of the projects offered to PT Adhi Karya is apartment development,
high rise commercial building and hospital projects.

He said funding for the projects had been made available and therefore
if the company won the projects it would bring funds home.

Although the company is eyeing overseas projects, domestic projects
mostly from the state (around 60 per cent) are still expected to
contribute Rp3.1 trillion out of the company`s income target of Rp4.1
trillion.

To strengthen its capital, he said the company had proposed conducting
a right issue. However the government has not yet given an approval to
it. Based on the regulation the government`s equity in the company
should remain at 51 per cent, he said.

"If we conduct a rights issue worth up to Rp600 billion, the company
may potentially get a loan of up to Rp1.2 trillion," he said.

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Indonesia's Adhi Karya postpones rights issue

JAKARTA, July 27 Asia Pulse - Publicly listed construction company PT
Adhi Karya (JSX:ADHI) said it has decided to postpone its proposed
rights issue until 2007, a year later than the original target.

President of the state company Saiful Imam said the issue was delayed
as the management failed to secure approval from the government, the
company's 51 per cent shareholder.

The company hopes to raise Rp600 billion (US$66.6 million) from the
rights issue that will be used to finance a number of projects to be
built this year, Saiful said.

He said Adhi Karya has clinched a number of projects abroad including
a US$46 million housing project in the Middle East and a railroad
project in Orissa, India valued at Rp610 billion.

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Indonesia's Total Bangun Persada eyes 31 projects this year

JAKARTA, July 27 (Asia Pulse/Antara) - Property company PT Total
Bangun Persada said it hopes to complete 31 big and small projects
valued at Rp2.3 trillion (US$255.5 million) this year.

Company President Reyno St Adhiputranto said among the projects are
The Peak apartment valued at Rp480 billion, the Pearl Garden building,
and The Pakubuwono building in Jakarta and The Cambridge building in
Medan.

Reyno said some of the big projects such as the 48-floor The Peak
estimated to cost Rp480 billion ,are almost completed.

The Pakubuwono apartment building, built in cooperation with Shimizu,
a contractor from Japan is already ready for occupation.

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Indonesia to open tenders for Java toll road construction

JAKARTA, July 27 (Asia Pulse/Antara) - The Indonesian government plans
to open prequalification tenders today for the construction of a 162
kilometer toll road project valued at Rp8.5 trillion (US$944.4
million) in Central Java.

The project to link Solo and Kertosono is divided into two sections,
the Toll Road Regulatory Body (BPJT) said.

The Solo-Ngawi section is 75 kilometers long to cost around Rp3.93
trillion and the Ngawi-Kertosono section is 87 kilometers to cost
around Rp4.56 trillion, BPJT chairman Hisnu Pawenang said.

The government will offer incentives to attract investors, Pawenang
said without giving details about these would be.

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Holcim Indonesia plans to build new cement factory in East Java

HONG KONG, July 27 (XFN-ASIA) - PT Holcim Indonesia, the country's
third largest cement maker, plans to build a new cement factory in
Tuban, East Java as part of efforts to expand its market, National
Investment Coordinating Board (BKPM) chairman Mohamad Lutfi said.

'Holcim wants to expand their operation. They haven't applied for the
new plant but they have assigned a team to study the expansion
prospect in Tuban, East Java,' Lutfi told reporters.

Holcim Indonesia currently operates two plants - at Narogong, West
Java and in Cilacap, Central Java - with a combined annual capacity of
7.9 mln tons employing about 3,200 people.

He said Holcim may build one production line at cost of around 150-300 mln 
usd.

The investment board has recently approved a 450 mln usd expansion
plan by Lafarge SA, owner of Aceh-based PT Semen Andalas. On a smaller
scale, Thailand's Siam Cement has also recently obtained approval to
build a 90 mln usd cement plant in Sukabumi, West Java.

Lutfi said Indonesia's higher cement prices compared to its
neighbouring countries indicates positive prospects for demand growth.

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Indonesia's Semen Kujang to request JIBC to reschedule debt

JAKARTA, July 27 (Asia Pulse/Antara) - State fertilizer company PT
Semen Kujang said it will request to Japan Bank for International
Cooperation (JBIC) to reschedule its debt to enable it to improve its
cash flow.

Kujang, which is required to start paying this year Rp300 billion
(US$33.3 million), in annual installment of a debt of Rp2 trillion,
proposes that the payment of the first installment be made in 2008.

Its Finance Director Achmad Tossin said the company expects to be
given a grace period after the completion of the construction of its
new unit Kujang IB for which the loan has been used.

The two steps loan, a scheme granted by JBIC via the government, will
mature in 2014.

The parent company of state fertilizer companies PT Pusri is helping
Pupuk Kujang in seeking a new loan of Rp450 billion to improve its
cash flow.

Pupuk Kujang is no longer bankable, Tossin said.

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Indonesia's Lion Air vows tariff cut with new planes

JAKARTA, July 27 (Xinhua) -- Indonesia's budget carrier Lion Air said
Thursday it would cut air fares by 30 percent when its 60 new Boeing
737-900s come to service.

"The tickets will be cheaper. I guarantee a 30 percent cut in tariff,"
Lion Air spokesman Hasyim Arsal Al Habsyi was quoted by the Detikcom
news website as saying.

Lion Air bought the new planes for 3.9 billion U.S. dollars last year.

The country's first low-cost carrier also pledged to expand routes to
China, Australia and India when the new planes arrive.

The Boeing 737-900 is capable of transporting 215 passengers and
landing on a 1,300-meter runway.

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Indonesia's Lippo Karawaci H1 net profit 175.0 bln rupiah vs 171.31 bln

JAKARTA, July 27 (XFN-ASIA) - Integrated property firm PT Lippo
Karawaci's first half to June results:

Sales - 911.98 bln rupiah vs 952.24 bln
Operating profit - 237.86 bln rupiah vs 267.34 bln
Net other income - 14.66 bln rupiah vs charges 599.36 mln
Net profit -175.0 bln rupiah vs 171.31 bln
Earnings per share - 59.67 rupiah vs 60

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Indonesia's Bimantara Citra H1 net profit 159.77 bln rupiah vs 6.16 bln

JAKARTA, July 27 (XFN-ASIA) - Diversified conglomerate PT Bimantara
Citra's first half to June results:

Sales - 1.38 trln rupiah vs 1.27 trln
Operating profit - 166.53 bln rupiah vs 92.76 bln
Net other income - 47.03 bln rupiah vs charges 131.26 bln
Profit from affiliates - 13.18 bln rupiah vs 27.90 bln
Minority interest - 7.67 bln rupiah vs 33.03 bln
Net profit - 159.77 bln rupiah vs 6.16 bln
Earnings per share - 122 rupiah vs 5

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Indonesia's Media Nusantara Citra 230 mln usd bonds rated '(P)B1' - Moody's

JAKARTA, July 27 (XFN-ASIA) - Moody's Investors Service said it has
assigned a provisional '(P)B1' corporate family rating to PT Bimantara
Citra's 100-pct owned unit PT Media Nusantara Citra (MNC) and a
'(P)B1' rating to its proposed 230 mln usd senior secured bonds.

The ratings outlook is stable.

MNC is an integrated media company with operations in television
broadcasting network, radio and print media. It is the leader in
Indonesia's free-to-air (FTA) TV broadcasting market, owning 3 FTA TV
networks out of a total of 11, and captured the largest audience share
in 2005.

The company plans to use the bond proceeds to refinance existing debt,
fund its proposed acquisition of a 40 pct stake in Indovision, a local
pay-TV company, and for general corporate purposes.

'The (P)B1 rating reflects MNC's leading position in Indonesia's FTA
TV market, where it had - under its 3 subsidiaries - a combined
audience share of over 37 pct in 2005,' Moody lead analyst Angela Choi
said.

'The favorable industry outlook, including solid growth potential for
advertising expenditure in Indonesia, and the group's strong content
library, which focuses on local content, together support the rating,'
she added.

'However, such positive attributes are offset by the group's
acquisitive strategy, which has included aggressive expansion in
recent years, and short track record of integrating its various
acquisitions under its present corporate structure,' says Choi.

The rating also reflects the risks of an evolving regulatory
environment, especially given ongoing discussions on the possibility
of regulating multi-media formats under one group, currency exposure
following the US dollar bond issuance, and MNC's current lack of
back-up liquidity arrangements, Moody's said.

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Joyo Indonesia News Service
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