[Kabar-indonesia] 19 RI Biz/Econ Reports: Less Than 5% Growth; No Crisis: VP; Indofood; Rice

[JoyoNews at aol.com]

19 Reports:

- Indonesia's economy to grow at less
    than 5.0 pct in H1: Minister
- Indonesia no longer facing economic
    crisis: Vice President
- BI estimates slow growth for investment 
  sector
- Indonesia to import 150,976 tons of
    special rice in 2006
- CLSA raises recommedation on
    Indofood to outperform
- Gaikindo sees auto show sales
    slightly above 1 trln rupiah
- JP: More visitors at IIMS, but sales 
  weaken [Indonesian International 
  Motor Show]
- Indonesia's Semen Gresik seeks additional
    funds for cement plant
- Indonesia press: Ciputra May Issue $125M
    Bonds In Sep
- Indonesia's Jaya Ancol optimistic about
    profit target this year
- SingTel nets S$31 mln gain from 
  property sale
- Indonesian shipbuilder PT PAL
    receives many orders
- Japan and Indonesia to continue
    economic partnership talks
- Indonesia gives East Nusa Tenggara
    priority for development
- Governor of Indonesia's Banten to
   sign MOUs in Malaysia
- Astra Agro raises target for 2006
    palm oil output
- Malaysia PPB Oil plans 300-400 mln rgt
    capex annually for Indonesia ops -report
- Indonesia palm oil extends rally on
    tight supply
- Asian Rubber Futures Settle Up On
    Tight Physical Supply

Indonesia's economy to grow at less than 5.0 pct in H1: Minister

JAKARTA, July 31 (Asia Pulse/Antara) - Finance Minister Sri Mulyani
Indrawati said at Indonesian Investor Forum I/2006 here Monday that
the national economic growth rate in the first semester of 2006 will
be below 5.0 per cent.

"We still hope that the economic growth rate will reach slightly below
5.9 per cent up to the end of 2006," she revealed, adding that the
House of Representatives (DPR) has asked revision to the projection as
it is hard to meet the set target of 7.0 per cent.

The economic growth rate in the first quarter of 2006 stood at 4.59
per cent, far below the set target of 5.9 per cent for the same
period, according to the finance minister.

The government will monitor economic growth from quarter to quarter to
observe whether the national economy remains stagnant or has shown a
positive trend, she explained.

Concerning the realization of the National Budget up to July 7, 2006,
she disclosed that the national revenue reached Rp247.806 trillion or
39.6 per cent of the State Budget, composed of Rp192.224 trillion in
tax revenue, Rp54.918 trillion in non-tax revenue and Rp663.4 billion
grants.

The national expenditure up to July 7, 2006 reached Rp247.523 trillion
or 31.4 per cent of the State Budget, comprising Rp149.366 trillion in
central government`s expenditure, and Rp104.156 trillion in regional
administrations` expenditure. So there is a surplus of Rp238.6
billion, she pointed out.

Sri Mulyani stated that the government will strive for the optimal use
of the fiscal stimulus and the enhancement of macro-economic
stability.

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Indonesia no longer facing economic crisis: Vice President

JAKARTA, July 31 (Asia Pulse/Antara) - Indonesia is no longer hit by
economic crisis because per capita income has reached US$1,500, Vice
President Jusuf Kalla said here on Sunday.

"The economic crisis has actually ended," Kalla said in a response to
a speech deliverd by chairman of the Nation Awakening Party (PKB)
Muhaimin Iskandar in the party's national meeting.

The vice president further said Indonesia's per capita income had
reached US$1,000 before the crisis hit the country in 1998 and dropped
drastically to US$700 during the crisis.

"The country's per capita income has reached US$1,525. If its per
capita income still stands at US$700, it's correct the crisis still
exists but in fact it is not," he said.

After President Susilo Bambang Yudhoyono took office on October 20,
2004, he moved quickly to implement a "pro-growth, pro-poor,
pro-employment" economic program.

He also announced an ambitious anti-corruption plan December 2004.

The State Ministry of National Development Planning (BAPPENAS)
released in early 2005 a Medium Term Plan focusing on four broad
objectives: creating a safe and peaceful Indonesia, creating a just
and democratic Indonesia, creating a prosperous Indonesia, and
establishing a stable macroeconomic framework for development.

President Yudhoyono and his team have targeted average growth of 6.6
per cent from 2004-2009 to reduce unemployment and poverty
significantly.

Indonesia's overall macroeconomic picture is stable and improving,
although GDP growth rates have not yet returned to pre-crisis levels.

Indonesia's 4th quarter 2004 GDP growth was 6.1 per cent, its highest
level since the 1997-98 financial crisis, and full year growth in 2004
was 5.1 per cent.

Kalla, however, admitted that there are some problems facing Indonesian 
people.

According to him, the previous governments had also problems related
to human actions like communal conflicts in Poso and Ambon and now the
government had problems related with natural disasters.

He said the government tried hard to lessen impacts and victims of the
calamities. One of the government's efforts is to install early
warning systems.

"The government will install sirens in coantal areas across the
country prone to earthquake and tsunami," he said.

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

Bank Indonesia estimates slow growth for investment sector

JAKARTA, July 31 (Asia Pulse/Antara) - Bank Indonesia estimates that
the country's investment sector will grow by only 5.6 per cent in
2006, slower than previously predicted.

The central bank attributed the lower than expected growth to low
domestic demand.

In 2007, investment is expected to grow faster with expected
improvement in the investment climate and the purchasing power of the
people, the central bank said in a report.

Investment is forecast to grow 9.9 to 10.9 per cent in 2007, the report said.

Chief Economics Minister Boediono said the government will seek to cut
interest rates to boost investment.

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

Indonesia to import 150,976 tons of special rice in 2006

JAKARTA, July 31 Asia Pulse - The Ministry of Trade has given the
green light for the import of 150,976 tons of special rice in 2006,
whereas the Ministry of Agriculture had recommended 165,426 tons.

"Right now only 38,784 tons have been imported," Imports Director at
the Foreign Trade Directorate General of the Ministry of Trade Albert
Tubogu said in Jakarta on Friday.

Special rice, Albert said, include glutinous rice, finely ground
ordinary and sticky rice, rice for steaming for diabetics which is
only produced in northern India, jaonica rice and rice seedlings.

The low import of special rice was due to a decline in rice production
in Thailand and adverse weather conditions.

In the meantime, the minister of trade had sent a letter to the
minister of finance on the extension of the 2006 rice import period to
December 2006.

The trade minister`s letter no No649/M-DAG/7/2006 was signed on July
21, 2006 and was made on the basis of the result of Limited Rice
Coordination Meeting on July 10, 2006.

Ordinary people are not permitted to import rice under the minister of
trade`s previous letter No 1718/M-DAG/12/2005, which expired on July
31, 2006.

But if the domestic or government`s rice stock is not adequate,
according to a recommendation of the Limited Rice Coordinating
Meeting, the extended rice import period could be reviewed.

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

CLSA raises recommedation on Indofood to outperform

JAKARTA, July 31 (Reuters) - CLSA upgraded on Monday its
recommendation on the world's largest instant noodle maker, PT
Indofood Sukses Makmur Tbk , to outperform from underperform 
and set a target price of 1,100 rupiah (12 U.S. cents) per share.

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

Indonesia's Gaikindo sees auto show sales slightly above 1 trln rupiah

JAKARTA, July 31 (XFN-ASIA) - The Indonesian Automotive Industries
Association (Gaikindo) expects car sales from this year's auto show to
be slightly above 1 trln rupiah against the target of 1.2 trln,
Gaikindo deputy chairman Wiwi Kurnia said.

The 10-day event closed yesterday.

"As of Saturday night, 3,500 vehicle units had been sold for around
700 bln rupiah. We have yet to calculate the numbers until yesterday
but I predict sales to come in slightly above 1 trln rupiah," Kurnia,
who chaired the show, told XFN-Asia.

This year's auto show was the 14th such event organized by Gaikindo
but it is the first time that it was endorsed by the Organisation
Internationale des Constructeurs d'Automobiles (OICA) or the
International Organization of Motor Vehicle Manufacturers and included
in the international motor show calendar.

Gaikindo earlier reported that industry-wide local car sales in the
six months to June dropped by almost half or 49 pct to 149,634
vehicles from 295, 779 units last year.

-----------------------------------
The Jakarta Post
July 31, 2006

More visitors at IIMS, but sales weaken 

The 14th Indonesian International Motor Show (IIMS) at Jakarta Convention 
Center concluded Sunday on a high note, with paying visitors throughout the event 
reaching some 200,000 compared to last year's 161,000.

Despite the higher number of visitors, the value of cars sold during the 
event showed a significant drop, with sales at Rp 691.3 billion (some US$75.1 
million) as of Saturday, making it very unlikely to top last year's figure of Rp 
1.2 trillion, according to records from the show. 

Twenty-one car sole agents took part in the 10-day show that focused on 
featuring new products, with only a few of them displaying environmentally friendly 
cars. 

Several competitions were held at the show, including the IIMS Best of The 
Best Car, which was won by All New Honda Civic 2.0. The new Civic was voted as 
winner due to its innovative features and reasonable price. 

Receiving the award presented Sunday was Kenji Otaka (center in photo above), 
president director of PT Honda Prospect Motor. 

Another prestigious award, the Best Car Favorite was won by Toyota Yaris 
Superman. 

Toyota also won the award for the best stand as its team was clever in 
maximizing the limited space available and was able to take advantage of the curving 
contour of the stand. 

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

Indonesia's Semen Gresik seeks additional funds for cement plant

JAKARTA, July 31 (Asia Pulse/Antara) - State cement producer PT Semen
Gresik said it will seek Rp2.28 trillion (US$253 million) in
additional funds to build a new Rp3.5 trillion cement factory.

The company will is currently only able to cover 35 per cent or Rp1.22
trillion of the total cost, its president Dwi Sutjipto said.

Sutjipto explained that the remainding 65 per cent of the cost will be
acquired through either a bank loan, bond fund or other form of fund.

Construction is set to start in the second half of next year, he said.

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

Indonesia press: Ciputra May Issue $125M Bonds In Sep

JAKARTA, July 31 (Dow Jones)--Indonesian property company PT Ciputra
Development (CTRA.JK) is weighing an option to issue bonds overseas to
help finance a property project in Vietnam's Hanoi, Bisnis Indonesia
reported Monday.

Credit Suisse First Boston has been appointed a financial advisor to
study the possibility, the daily quoted Tulus Santoso, a director with
the company, as saying.

"We are studying whether it will be convertible bonds or ordinary
ones," Santoso was quoted as saying.

The newspaper also quoted an unnamed source as saying that Ciputra
plans to raise $125 million in early September.

Another alternative the company is considering is a rights issue.

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

Indonesia's Jaya Ancol optimistic about profit target this year

JAKARTA, July 31 (Asia Pulse/Antara) - Publicly listed operator of
Jakarta beach recreational center PT Pembangunan Jaya Ancol (JSX:PJAA)
said it is optimistic that it will be able to chalk up a net profit of
Rp131 billion (US$14.5 million) this year, up from Rp121 billion last
year despite tsunami concerns.

Some forecasters have said Jakarta will be the next city to be
devastated by tsunami after Aceh in late 2004, followed by Yogyakarta
and most recently southern coastal areas of West Java and Central
Java.

The performance of the company was better in the first half of this
year than in the same period last year, a company executive Y.
Harwanto said.

Early this year the company set aside Rp300 billion to finance
development of more beach infrastructure in a bid to reach a sales
target of Rp750 billion this year.

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

SingTel nets S$31 mln gain from property sale

SINGAPORE, July 31 (Reuters) - Singapore Telecommunications Ltd. , Southeast 
Asia's largest phone company, said it had netted a gain of nearly S$31 million 
from the sale of a property. 

SingTel said the site, located in eastern Singapore and previously used for 
bulk cable storage, was sold on Monday for S$33 million to FCL Loft Pte Ltd, a 
wholly owned subsidiary of Fraser Centrepoint Properties Ltd. . 

The net book value of the site was about S$1.7 million, the company said. 
"This sale will help us better utilise capital and free up cash resources that 
can be redeployed in our core telecommunications business as well as in new 
investments," said Chief Financial Officer Chua Sock Koong.  

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

Indonesian shipbuilder PT PAL receives many orders

SURABAYA, July 31 (Asia Pulse/Antara) - State-owned ship-building
company PT PAL Indonesia has received a lot of orders following its
success in producing various types of vessels especially the "Star
Fifty" measuring 50,000 DWT, a spokesman said.

"We have received many orders. We are even already fully booked until
2009," PT PAL President Director Adwin H Suryohadiprojo said here on
Friday on the sidelines of the handing over of 50,000 DWT DSBC vessel
"Stadtsolingen - ST John".

The "Stadtsolingen - ST John" is 189.998 meters long, 30.500 meters
wide and 17.500 meters high. It was built within 12 months, or six
months earlier than scheduled.

He said German company "Reedere M Lauterjung Gmbh" had ordered six
cargo vessels weighing 50,000 DWT and three Italian companies had also
ordered similar ships.


He said PT PAl could still recieve orders to build combat vessels,
tugboats and other small-sized vessels.

Regarding the "Star Fifty" ordered by an Italian company Adwin said
that it would be the company`s initial promotion to make its product
known to the world market.

The president director of "Reederel M Lauterjung Gmbh", Manfred
Lauterjung, admitted that commercial vessels from PT PAL had good
qualities.

"The price and quality of vessels offered by PT PAL are competitive
and therefore we have immediately ordered four units," he said.

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

Japan and Indonesia to continue economic partnership talks

JAKARTA, July 31 (Asia Pulse/Antara) - Indonesia and Japan will hold
the fifth round of their talks on an Economic Partnership Agreement in
Jakarta from August 2 to 5.

The Japanese embassy in its statement here said Japanese Deputy
Minister for Foreign Affairs Mitoji Yabunaka and a number of officials
from relevant agencies were scheduled to attend the meeting.

Indonesian officials to appear at the meeting include Ambassador to
Japan Sumadi Jokomuryono Brotodiningrat and several officials from
relevant ministries.

A plenary meeting as well as negotiations will be held on various
working sectors including trade, investment and others, it said.

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

Indonesia gives East Nusa Tenggara priority for development

JAKARTA, July 31 (Asia Pulse/Antara) - All regencies and municipal
cities in East Nusa Tenggara (NTT) with the exception of Kupang will
be among areas in the list of top priority in the country's
development program for 2007.

They are put in the priority as they are all among 199 regencies and
cities in the category of backward areas in the country, State
Minister for National Development Planning Paskah Suzetta said.

Most or 123 of the backward areas/cities are in eastern part of the
country, 58 in Sumatra and 18 in Java and Bali.

Paskah Suzetta acknowledged lopsided implementation of development
program, partly because of inadequate infrastructure and facilities,
scarce skilled human resources and natural resource, has left many
areas lagging far behind.

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Governor of Indonesia's Banten to sign MOUs in Malaysia

SERANG, Banten, July 31 (Asia Pulse/Antara) - Acting Governor of
Banten Ratu Atut Chosiyah left for Malaysia on Friday to sign
memorandum of understanding on investment development in her province.

"I will sign MoUs on investment, tourism and other sectors in which
Malaysian businessmen and their Indonesian counterparts want to
cooperate," Atut said here.

She also said she wanted to use the opportunity to promote Banten as a
tourism destination as it had an abundance of potential ttarctions in
the natural and cultural categories.

Atut hoped during her visit she would be able to interest Malaysian
businessmen in investing in Bnnten province.

President of Association of Malaysian Malay Businessmen and Traders
(Perdasama) Dato Moehamad Izat Emir visited Banten in April this year
to look at the province`s tourism areas and potentials.

"It is possible for businessmen from Selangor to come here and my
colleagues and I can present Banten there (Malaysia)," he said.

He visited Banten which is not so far from the capital city of
Jakarta. Banten's strategic position is supported by a port.

He was also interested in the Bojonegara International Port that is
due to operate in 2010.

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Astra Agro raises target for 2006 palm oil output

JAKARTA, July 31 (Reuters) - PT Astra Agro Lestari Tbk , Indonesia's
largest-listed plantation firm, has revised up its crude palm oil
output target for 2006 to 965,000 tonnes from 950,000 tonnes, a senior
company official said on Monday.

Eventhough there is a mild drought, the weather is relatively benign
which is helping increase the crop yield, Julie Syaftari, the
company's finance director, told reporters.

"Production in the second half normally will be higher than the first
half because oil palm trees enter peak season. The weather is still
normal although there is drought," Syaftari said.

"We are optimistic 965,000 tonnes is achievable," she said.

Astra Agro produced 470,718 tonnes of crude palm oil in the first half
of 2006, a 13.9 percent increase from 413,229 tonnes in the same
period last year.

The plantation unit of the country's leading auto retailer, PT Astra
Agro International Tbk , produced 857,139 tonnes of crude palm oil in
2005.

Syaftari said the company will spend between 500-600 billion rupiah
($55 million-$66 million) this year to open and develop new oil palm
plantations as well as building new oil palm mills.

It currently manages 201,412 hectares of oil palm plantation.

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

Malaysia PPB Oil plans 300-400 mln rgt capex annually for Indonesia ops 
-report

KUALA LUMPUR, July 31 (XFN-ASIA) - PPB Oil Palms Bhd is planning
capital expenditure of 300-400 mln rgt annually in its Indonesia
operations between 2006 and 2010, the company's managing director Khoo
Eng Min was quoted by the Star newspaper as saying.

Khoo said the group will fund its expansion plans in Indonesia via
internal funds and bank borrowings.

'We are targeting to have two to three mills in operation by year
2010,' he added.

He also said it will produce biodiesel in Indonesia to cater for its
own vehicle and machinery consumption there.

He said the company will produce biodiesel to ensure a steady
dependable source for its growing plantation operations in Indonesia,
rather than for export markets.

'Our experience has shown that the supply of diesel, especially in
central Kalimantan in indonesia, is not very reliable,' he was quoted
as saying.

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Indonesia palm oil extends rally on tight supply

JAKARTA, July 31 (Reuters) - Indonesian palm oil prices extended their
rally on Monday due to tight supply in the domestic market and a rally
by Malaysian crude palm oil futures, traders said.

At the state marketing centre's auction, crude palm oil was quoted at
4,203 rupiah ($0.463) a kg, up from 4,167 rupiah on Friday.

There were no local auctions in North Sumatra's Medan, the key port
for palm oil exports, as sellers were reluctant to make offers,
waiting for prices to rise further, said a trader in Medan.

"It's a seller's market now. The market is rallying now, so they want
to see if prices will continue their uptrend tomorrow," the Medan
trader said.

"Crude palm oil supply is also a bit tight. Production is down
slightly due to dry weather, but demand is quite strong, spurred by
the rally in prices."

In Jakarta, cooking oil traded at 4,800 rupiah a kg, up from between
4,575 and 4,725 rupiah on Friday.

"Malaysia has been gaining since last week, supporting prices," said a
trader in Jakarta.

"Supply is still tight because drought has hampered shimpents of crude
palm oil to Jakarta from plantations. Vessels can't ship the oils as
the drought has lowered the water level in rivers."

Malaysian crude palm oil futures closed higher, boosted by robust
exports in July and forecasts of lower output due to dry weather.

The benchmark third-month October <KPOV6> contract on the Bursa
Malaysia Derivatives ended up 1.3 percent or 21 ringgit at 1,641
ringgit ($449) a tonne.

On the exports front, sellers offered August shipment at $435 a tonne,
free on board Belawan. Bids were seen at $430 but no deals were
reported.

Offers for September shipments were seen at $437.5 a tonne, free on
board Belawan. Buyers bid at $432.5, with no deals reported.

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

Asian Rubber Futures Settle Up On Tight Physical Supply

SINGAPORE, July 31 (Dow Jones)--Asian rubber futures rose for the
second consecutive trading day, as sentiment strengthened on
tightening in the physical rubber supply and perceptions that last
week's losses on Asian exchanges were too sharp.

Tokyo Commodity Exchange rubber futures made big gains, continuing its
rebound from Friday on heavy short-covering, a Tokyo-based trader
said.

"The raw material price in Thailand stopped declining, so some rubber
people in Thailand and Singapore came in to cover some of their short
positions," a Tokyo trader said. "The rubber sentiment is much
stronger (now) than last week."

Two contracts ended at the Y10 limit-up, with the benchmark January
RSS3 contract gaining Y8.8 to finish at Y277.4/kg.

A Singapore-based trader said Tocom's rebound still has more to go.

"It was very oversold last week, so technically it has to rebound," a
Singapore-based trader said.

However, he expects the benchmark may only gain a few more yen before
the rebound loses steam.

"The bottom (for the benchmark) is solid at Y260, but it rebounded so
sharply today, it's likely the topside is already capped."

Tocom rubber's trading volume climbed to 246,585 tons, from 157,245 tons 
Friday.

Rubber futures on the Osaka Mercantile Exchange finished sharply
higher, as Tocom rubber's gains induced shorts to cover.

All contracts ended at the Y6 limit-up, with the benchmark January
RSS3 closing at Y274.2/kg.

Overall trading volume increased to 5,705 tons, from 3,445 tons Friday.

On the Shanghai Futures Exchange, rubber futures rose on short
covering, spurred by falling stocks in exchange monitored warehouses,
said Zhang Fangfang, an analyst at Shanghai Jiuheng Futures Co.

Most contracts hit their limit-up late in the session; the benchmark
SCR5/RSS3 October 2006 closed CNY500 higher at CNY23,135/ton.

Total trading volume eased to 912,190 tons, from 1,071,390 tons Friday.

RSS3 futures on the Agricultural Futures Exchange of Thailand settled
higher, finding support from gains in physical USS3 prices and Tocom
futures.

Rains in some rubber-growing areas in Thailand hindered the supply of
latex, boosting cash rubber prices.

The most active February RSS3 contract broke rose THB4 to settle at 
THB89.8/kg.

Overall trading volume edged upwards to 1,565 tons, from 1,420 tons Friday.

On the Singapore Commodity Exchange, rubber futures made big gains
with RSS3 forward contracts up about 4.5%.

Traders said Tocom's gains, as well as Sicom's discount compared to
physical prices, were behind its sharp jump Monday.

"Sicom was too low compared to the physical market last week, so there
was lots of short covering," a Singapore-based trader said.

The August RSS3 contract spot gained 6 U.S. cents/kg to end at 231.25
cents/kg, while the August TSR20 contract was up 6.25 cents at 226.25
cents/kg.

RSS3 trading volume was steady at 1,200 tons, from 1,260 tons Friday;
volume on TSR20 contracts more than halved to 5,020 tons, from 12,900
tons.

Tocom's gains, as well as rains in Thailand and Malaysia, gave a lift
to Asian physical rubber prices, traders said.

"The raw material supply has fallen because of the past couple days of
rains," a trader in Malaysia's Ipoh state said.

However, he added that rains were lifting and production would recover
now that tree tapping could resume.

Thai RSS3 for September shipment was offered at 233-235 U.S. cents/kg,
up from 228 cents Friday, while offers fro Thai STR20 also rose to
233-235 cents/kg, from 227-231 cents, FOB Bangkok.

September shipments of Indonesia SIR20 were quoted around 221
cents/kg, against Friday's 218.3-219 cents/kg, FOB Palembang.

Meanwhile, offers for Malaysia SMR20 for September shipment ranged
between 226-230 cents/kg, compared to 228-229 cents, FOB Port
Klang/Penang.

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Joyo Indonesia News Service
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