[Kabar-indonesia] 21 RI Biz/Econ Reports: Fertilizer Industries May Collapse; FDI Up; Garuda

[JoyoNews at aol.com]

21 reports:

- Indonesian fertilizer industries on brink
    of collapse: Exec.
- Indonesian Jan-May foreign investment
    up slightly
- JP: Govt plans fund to keep Garuda flying 
- Global Insight: Foreign Direct Investment to
    Indonesia Rises On Year, Approval Rates
    Continue to Decline
- Yudhoyono to visit Batam Industrial Estate
    with Lee, Howard
- Indonesia Min: Widening Budget Deficit
    Won't Hurt Growth
- Indonesia May motorcycle sales up 19 pct
    vs April; down 23 pct yr-on-yr
- PT Astra May motorcycle sales 
  up 22 pct vs April; down 22 pct yr-on-yr
- JP: Unilever turns to CSR to up sales 
- RI Air Transport to go public
    this year
- Indonesia offers airlines licenses for
    pioneer routes
- U.S. Exim Bank provides facility for 
  Indonesian exports, imports
- Indonesia targets US$2.5 bln in electronics
    investment by 2009
- Indonesia slaps extra import duties on
    UAE wheat flour
- Indonesia to import 350,000 lives cows
   from Australia
- Indonesia's Astra Agro 5 mths CPO output
    386,569 tons; up 13.1 pct
- Indonesia's AAL secures new loan of
   US$54 mln from syndicate
- Indonesia expected to be world's biggest
   palm oil producer by 2007
- Indonesia palm oil prices mixed, players
   sidelined
- Asian Rubber-Tokyo futures mostly up,
   Indonesia sells tyre-grade
- JP: Seagate launches ten new products 

Indonesian fertilizer industries 
on brink of collapse: Executive

JAKARTA, June 20 (Asia Pulse/Antara) - Several industries producing
urea and other fertilizers are on the brink of collapse as the result
of cashflow problems and high public service obligation as well as the
lack of gas supplies which had caused a drop in production, an
official said.

"Their loss may reach Rp400 billion (US$43 million) to Rp500 billion
in 2006," Dadang H. Kodri, president director of the state-owned
fertilizer company PT Pupuk Sriwijaya (Pusri) said here on Monday
during a hearing on subsidy for fertilizers with the House`s
commission XI on financial and banking affairs.

According to him, the loss would be incurred if the public service
obligation (PSO) assumption of the fertilizer subsidy in 2006 reached
Rp 1.2 trillion, less than the projected Rp1.7 trillion.

"The loss could be the result of the appreciation of the rupiah which
in the state budget was set at Rp9,900 per US dollar, but now the
rupiah exchange rate is increasing," Kodri said. In the meantime,
fertilizer sales for the non-food sector would reach about Rp800
billion, he cited.

The figures were based on an assumption that subsidized urea
fertilizer reached 4.3 million tons and the other fertilizers 1.7
million tons, he said, adding that on the assumption that the subsidy
for urea fertilizer was based on subsidy for gas and for other
fertilizers based on price subsidy.

Kodri said further that under the current scheme of gas subsidy for
urea fertilizer, the fertilizer companies were now facing cashflow
problems because their production cost has exceeded the price of the
products.

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Indonesian Jan-May foreign investment up slightly

JAKARTA, June 20 (Reuters) - Foreign direct investment in Indonesia
rose over 5 percent to $3.14 billion in January-May from a year
earlier due to large spending in the metal and machinery sectors, the
state investment agency said on Tuesday.

But the agency, known as BKPM, said in a statement that foreign direct
investment (FDI) approvals fell around 33 percent to $5.47 billion in
January-May from the same period last year.

It did not give details.

The largest actual investments were in the metal, machinery and
electronics sectors, which together accounted for around $735.1
million of the funds.

Comparative figures for these sectors were not available. Total FDI in
the January-May period in 2005 was around $2.98 billion.

The BKPM data does not cover industries such as oil and gas, banking
and insurance.

Indonesia badly needs foreign investment to help propel economic
growth so it can reduce unemployment and develop its ailing
infrastructure.

Although foreign direct investment in Indonesia almost doubled to $8.9
billion in 2005 from a year earlier, some investors say graft, red
tape, an unfriendly bureaucracy, tough labour laws and an unreliable
legal system make Indonesia a poor choice compared with some regional
rivals.

The government wants to attract $145 billion in foreign money to
finance infrastructure projects during the current administration's
five-year term to 2009, but progress has been slow.

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

The Jakarta Post
June 20, 2006

Govt plans fund to keep Garuda flying 

The Jakarta Post, Jakarta

A number of options are still being explored to keep the country's two 
state-owned airlines afloat, including using proceeds raised from the securitization 
of the government's shares in various companies to set up a special bailout 
fund.

State Minister for State Enterprises Sugiharto said Monday that his ministry 
was preparing a "state-enterprise restructuring fund" to bail out national 
flag-carrier Garuda Indonesia and state-owned Merpati Nusantara Airlines. 

"The establishment of the fund is also intended to help other financially 
troubled state companies," said Sugiharto, as quoted by Antara, during a meeting 
with the House of Representatives' state enterprises commission. 

He explained that the money for the fund could be raised through the 
securitization of the state's minority shareholdings in a number of private sector and 
state firms, such as in mining company PT Freeport Indonesia, 
telecommunications firm PT Indosat and state-owned surveyor firm PT Sucofindo. 

Sugiharto did not put a finger on how much he expected to raise in this way. 

Asset securitization is a common method of raising funds via the capital 
markets through the issuing of securities products backed by a pool of assets. 

Although having huge potential, Garuda and Merpati are currently on the verge 
of bankruptcy due to their massive debt burdens, and poor overall management. 

Several House commissions had earlier agreed to bailout schemes proposed by 
Sugiharto. 

He had first suggested the establishment of a special-purpose vehicle (SPV) 
to manage Garuda's debts. Under this arrangement, the SPV would have taken over 
US$644 million of the company's total debts of $794 million, along with six 
of its aircraft. 

Later, he also proposed that the government guarantee the repayment of Garuda 
and Merpati debts so as to enable the two airlines to seek fresh funds to 
finance their day-to-day operations. 

Vice President Jusuf Kalla, however, poured cold water on the two schemes, 
and suggested instead that the airlines be sold to investors in order to reduce 
the burden on the state. 

In addition, many bureaucrats in the State Ministry for State Enterprises 
were reluctant to press ahead with the Sugiharto schemes, which had been in 
gestation since early 2005, afraid of the possibility of prosecution should 
anything go wrong. 

Sugiharto said the government was still discussing the best solution to 
Garuda's problems, and was putting out feelers to see whether the firm's creditors 
would be willing to accept debt-for-equity arrangements. 

"We are approaching the creditors to agree on debt-for-equity swaps, 
especially as regards unsustainable debts," said Sugiharto, adding that his 
restructuring fund proposal would also be presented to Garuda's creditors with a view to 
seeking their agreement. 

In the case of Merpati, Sugiharto added, the government estimated that it 
would take some Rp 450 billion (US$48.3 million) to keep the airline in the air. 

The government has been urging Merpati to seek the help of local 
administrations to expand its fleet and destinations in the hope that the administrations 
would buy or lease new aircraft, while Merpati would operate them under a 
revenue-sharing scheme. 

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Global Insight Daily Analysis
June 20, 2006

Foreign Direct Investment to Indonesia Rises On Year, Approval Rates
Continue to Decline

Annina Kaltenbrunner

Actual foreign direct investment (FDI) to Indonesia rose by 5.4% to
US$3.14 billion during the first five months of the year, the official
Investment Board reported on Tuesday. This is up from US$2.98 billion
during the same period last year. Newly approved investment, however,
fell to US$3.66 billion during the period, down from US$5.47 billion
last year. On a more positive note, actual domestic investment
increased by more than 50% to 10.47 trillion Indonesian rupiah (US$1.1
billion), compared to 6.72 trillion rupiah last year. Newly approved
projects by domestic investors also more than doubled from 20.9 to
56.82 trillion rupiah during the January-May period. Significance: The
contained on year growth and reduction in newly approved FDI projects
indicates that foreign investors remain deterred by a weak regulatory
and legal environment, an excess of red tape and corruption.

Despite the government's proven commitment to macroeconomic stability
and structural reforms, it seems that investors wish to wait for its
promises (see Indonesia: 3 March 2006: ) to bear fruit. At the same
time, domestic investment seems to have recovered slightly from its
downturn at the end of last year, with newly approved projects boding
well for future investment. That said, the link between approved and
actual investment is not a direct one, and a more accommodative
economic environment, especially from the monetary side, remains
important for sustaining future rates.

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Yudhoyono to visit Batam Industrial Estate with Lee, Howard

BATAM, June 20 (Asia Pulse/Antara) - President Susilo Bambang
Yudhoyono is scheduled to visit several industrial estates in Batam in
the company of Singapore Prime Minister Lee Hsien Loong and Australian
Prime Minister John Howard to discuss a number of important agendas at
the Turi Beach Resort and Batam View in Nongsa, from Sunday (25/6)
through Tuesday (27/6).

"Besides visiting four industrial estates, President Yudhoyono is also
scheduled to dedicate the Batam Polytechnic," Secretary of Riau
Islands Provincial Administration (Kepri) Eddy Wijaya said here on
Monday on the sidelines of a coordinating meeting preparing the
forthcoming Indonesian presidential working visit.

The coordinating meeting was attended by several key officials of
Kepri, Batam City Administration, Batam Authority, Barelang Police
Resort, Indonesian Chamber of Commerce and Industry (Kadin),
Immigration Office, Customs and Excise Office, and those from some
other important government institutions and agencies.

The president`s agenda for the first three days of his visit will be
concluded with the signing of a draft cooperation in the Batam-Bintan
Special Economic Zone (SEZ) together with the Singapore prime
minister.

The program will be followed by a visit to several industrial estates,
including Kabil Industrial Estate (KIE), Batu Ampar Industrial Zone
and Batu Ampar Container Port.

The Singapore prime minister, however, is slated to return straight
home on that day without spending the night on Batam.

President Yudhoyono is also slated to receive Australian Prime
Minister Howard on Monday (26/6) who will arrive at Hang Nadim
international airport in Batam on board a Boeing 737 Presidential
aircraft.

Yudhoyono and Howard will meet at Turi Beach Resort and Batam View in
Nongsa for two days in a row. But Eddy said he has yet to obtain data
and information on the agenda of discussions between the two leaders.

Yudhoyono will also visit Barelang bridge, and one of Indonesia`s
outermost islands -- Nipah in the Phillips Strait near Singapore.

In the meantime, the Indonesian First Lady and an entourage are slated
to visit Rempang and Galang islands, and observe the site where
Vietnamese boatpeople used to stay some time in the past, and a local
elementary school and a library.

In all, Wijaya said, President Yudhoyono will visit a total of 12
locations in the company of either Prime Minister Lee or Prime
Minister Howard.

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

Indonesia Min: Widening Budget Deficit Won't Hurt Growth

JAKARTA, June 20 (Dow Jones)--The Indonesian government is still
optimistic that it will be able to achieve its economic growth target
of between 5.7% and 5.9% this year even though its 2006 budget deficit
is expected to widen more than originally expected, Senior Economic
Minister Boediono said Tuesday.

"We maintain our original (growth target)," Boediono told reporters.
"The widening budget deficit is still manageable."

The government said last week that the deficit in the state budget
will likely widen to 1.5% of gross domestic product from the original
target of 0.7% due to higher fuel subsidies, education spending and
the costs of reconstructing quake-hit areas last month. [ 20-06-06
0706GMT ]

Boediono added that the government will use "various sources" to
finance the deficit, including raising more funds from the local
domestic bond market.

"I heard from the finance minister that for sure we are not going to
issue global bonds anymore," he added.

Finance Minister Sri Mulyani Indrawati was quoted Tuesday by Bisnis
Indonesia daily as saying that the government would seek to raise a
net IDR38 trillion in the local bond market this year, up from its
initial target of IDR25 trillion.

In March, the government issued US$2 billion in bonds in the offshore
market, the maximum permitted by parliament for this year.

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Indonesia May motorcycle sales up 19 pct vs April; down 23 pct yr-on-yr

JAKARTA, June 20 (XFN-ASIA) - Industry-wide motorcycle sales grew 19
pct to 322, 680 units in May from 271,092 in April, but were down 23
pct from 419,608 a year ago, the Indonesian Motorcycle Industry
Association (AISI) said.

In the first five months, total sales reached 1.47 mln units against
1.98 mln a year earlier, with PT Astra International's "Honda" brand
maintaining its leading 51 pct market share.

Yamaha came in second spot with five-month sales of 526,909 units or
36 pct of the total market.

Meanwhile, Suzuki followed in third with 176,159 units or 12 pct of the 
market.

Industry analysts have said that car and motorcycle sales have been
hard hit by high interest rates this year given that more than 60 pct
of car and motorcycle purchases are financed by borrowing.

The industry report excludes sales of imported motorcycles such as
those from China. Only producers and distributors of motorcycles with
local content are eligible for membership in the association.
Non-members account for about 10 pct of the total market.

Indonesia is the third largest motorcycle market in the world.

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

Indonesia's Astra May motorcycle sales 
up 22 pct vs April; down 22 pct yr-on-yr

JAKARTA, June 20 (XFN-ASIA) - PT Astra International's sales of Honda
motorcycles last month were 22 pct higher than in April but 22 pct
lower than a year before, the Indonesian Motorcycle Industry
Association (AISI) reported.

The sales figure for last month, at 170,839 bikes, was the highest
since December. Sales had fallen in the preceding two months.

In the five months to May, Astra sold 741,873 motorcycles, taking 51
pct of the market.

Astra produces and distributes only Honda bikes.

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The Jakarta Post
June 20, 2006

Unilever turns to CSR to up sales 

The Jakarta Post, Jakarta

Leading consumer goods producer PT Unilever is set to spend about Rp 15 
billion (US$1.6 million) this year on its corporate social responsibility (CSR) 
programs as part of the firm's efforts to boost consumer awareness of its 
products.

"We have seen that a CSR initiative is one of the most effective tools for 
putting the relationship between ourselves and our customers on a higher plane," 
Unilever corporate relations director Muhammad Saleh told reporters at a 
media gathering Monday. 

He said the company needed to diversify its marketing approaches as consumers 
were becoming increasingly fastidious when making purchases. 

Last year, the company ran 18 social responsibility programs, four of which 
were connected with its brands. 

This year, the company would increase the number of brand-related social 
programs. Four had already been launched as of June. 

Similar to last year, Saleh said, Unilever's CSR programs would focus on the 
development of small and medium enterprises, and healthy environment and 
public health campaigns. 

He said the company would also maintain ongoing programs that benefited 
communities. 

Under these programs, for example, the company provides soft loans to small 
and medium enterprises, and promotes the creation of healthy environments in 
Jakarta and Surabaya, he said. 

Unilever corporate secretary Franky Jamin said that thanks to the CSR 
programs and the introduction of new products, the company expected to maintain its 
double-digit revenue growth this year. 

The company's net sales increased by 11.2 percent to Rp 9.9 trillion in 2005 
from Rp 8.9 trillion in 2004. 

For the first quarter of this year, Unilever booked sales growth of 13.3 
percent to Rp 2.7 trillion from Rp 2.4 trillion in the corresponding period last 
year. 

Franky added that Unilever would launch 90 new products this year. 

The London/Rotterdam-based firm currently maintains a range of about 500 
products, including soaps, detergents, personal care items and food products.

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Indonesia Air Transport to go public this year

JAKARTA, June 20 (Asia Pulse/Antara) - The shareholders of PT
Bimantara Citra (JSX:BMTR) sanction plans to launch an initial public
offering (IPO) for its wholly owned subsidiary PT Indonesia Air
Transport (IAT) this year.

Bimantara President Bambang Hary Tanoesoedibyo said the IPO, targeted
to turn out up to Rp70 billion (US$7.5 million), is expected to raise
the income of the air transport subsidiary.

IAT, which has assets valued at Rp405.43 billion (US$45 million)
posted an income of Rp231 billion in 2005, up from Rp204 billion in
the previous year, and its net profit was recorded at Rp15.12 billion,
up from Rp10.34 billion in 2004.

Bambang attributed the increase in net profit to improvement of
performance and operating efficiency.

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Indonesian govt offers airlines licenses for pioneer routes

JAKARTA, June 20 (Asia Pulse/Antara) - The government said it will
issue license to private airlines to serve pioneer routes to isolated
areas in the country.

So far only state airline Merpati Nusantara Airlines has served
pioneer flights, and other airlines are expected to take part to
create a healthy competition, Air Transport Director General Mohannad
Ikhsan Tatang said.

Many areas, especially in eastern parts of the country, do not yet
enjoy air transport services, Ikhsan said yesterday.

He said the government will offer facility for airlines to open new
route to isolated areas in eastern Indonesia.

He said there are 140 pioneer airports in the country, mostly in
eastern part of the country, and flights to some of them are no longer
subsidized.

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U.S. Exim Bank provides facility for Indonesian exports, imports

JAKARTA, June 20 (Asia Pulse/Antara) - The U.S. Exim Bank has
announced a change in its import policy toward Indonesian importers
and exporters.

For the first time since 1998, export import funds will be provided on
1-7 year terms depending on commodities imported and exported by
private Indonesian companies, the U.S. Ambassador to Indonesia B. Lynn
Pascoe said.

The new policy was effective as of May 31, 2006, Pascoe said in a
statement yesterday.

He said the United States has become the largest market for Indonesian
non oil and gas commodities.

He said the policy is expected to have positive impact on opening more
jobs both in Indonesia and the United States.

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Indonesia targets US$2.5 bln in electronics investment by 2009

JAKARTA, June 20 (Asia Pulse/Antara) - The Indonesian government has
set the target for new investment in the electronics industry at
US$2.5 billion in 2009.

The investment target is set to boost exports to a projected US$9.5
billion in 2010, a senior official of the directorate general of
transport equipment and information technology said.

Abdul Wahid, electronics industry director, said the government has
put a number of electronic components on its development program's
priority list in bid to boost production.

Wahid said the country has so far only been able to have a share of
around US$7.8 billion of the world's electronic goods market, which is
valued at US$160 billion a year.

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Indonesia slaps extra import duties on UAE wheat flour

JAKARTA, June 20 (Reuters) - Indonesia has slapped additional import
duties of 14.85 percent on wheat flour from the United Arab Emirates,
a senior government official said on Tuesday.

The Ministry of Finance imposed the extra duty to penalise flour
exporters from UAE for dumping their products in Indonesia, said
Ridwan Kurnaen, chairman of Indonesia's Anti Dumping Committee (KADI)

"The decree was issued on June 19 after the committee investigation
showed that they (UAE exporters) dumped their products here," Kurnaen
told reporters.

The extra 14.85 percent should be paid in addition to the existing 5
percent duties imposed on all wheat flour imports.

The duties are effective from June 19 and will be in place for five
years, but may be reviewed after a year, the Ministry of Finance's
decree said.

The government-sanctioned KADI carried out an investigation after
local companies PT Bogasari Flour Mills and PT Berdikari Sari Utama
Flour Mills filed a complaint about UAE wheat flour export prices.

The committee investigation showed wheat flour imports from the UAE
stood at 50,323 tonnes in March 2003/April 2004, up by 93.3 percent
from 26,034 in March 2002/April 2003.

In March 2003/April 2004 UAE flour accounted for 15.9 percent of
Indonesia's total wheat flour imports of 317,253 tonnes.

Last year Indonesia imposed additional import duties on wheat flour
imported from China and India for similar reasons.

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Indonesia to import 350,000 lives cows from Australia

JAKARTA, June 20 (Asia Pulse/Antara) - Indonesia will import 350,000
live cows from Australia this year to make up for a shortage in
domestic meat supply, the association of cow and buffalo farmers
(PPSKI) said.

Association secretary Teguh Boediyana said 30 per cent of the 1.7
million live cows needed annually by the country are supplied through
imports, mainly from Australia and New Zealand.

Teguh said Indonesia has continued to need imports as the country's
cow farms have low productivity.

In addition, the price of imported meat from Australia is cheaper than
local products, he said.

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Indonesia's Astra Agro 5 mths CPO output 386,569 tons; up 13.1 pct

JAKARTA, June 20 (XFN-ASIA) - PT Astra Agro Lestari said its crude
palm oil (CPO) output reached 386,569 tons in the five months to May,
an increase of 13.1 pct from 341,696 tons a year ago supported by a
rise in fresh palm fruit production.

The five-month CPO output consisted of 52.8 pct high-grade "Super CPO"
and 47.2 pct regular CPO.

It said compared to the same period last year, production of Super CPO
in the first five months this year increased by 24.5 pct to 203,970
tons from 163,844 previously.

Fresh palm fruit production rose 6.7 pct to 1.53 mln tons from 1.43
mln the year before, with more than 47.3 pct or 722,364 tons coming
from plantations in Sumatra, 33.9 pct or 517,105 tons from Kalimantan
and 18.8 pct or 286,788 tons from Sulawesi.

Astra Agro has set a full-year CPO output target of 950,000 tons.

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Indonesia's AAL secures new loan of US$54 mln from syndicate

JAKARTA, June 20 (Asia Pulse/Antara) - Listed agribusiness company PT
Astra Agro Lestari (JSX:AALI) said it has received a short term loan
of Rp500 billion (US$53.7 million) from a syndicate of local and
foreign banks.

AAL Finance Director Julie Syaftari said the fund from the standing
loan will be used to strengthen its working capital this year to
finance expansion of oil palm plantations.

Julie said AAL targets to expand its oil palm plantation by 15,000
hectares of which 5,000 hectares have already been implemented,
bringing its oil palm plantations including plasma plantation to
207,000 hectares.

The company needs additional fund especially as the management has
paid dividends 65 per cent of its net profit posted last year, he
said.

Earlier the company said it would acquire a number bio-diesel
factories in Europe and build ones in the country.

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Indonesia expected to be world's biggest palm oil producer by 2007

MEDAN, N Sumatra, June 20 (Asia Pulse/Antara) - Indonesia is expected
to be the world's biggest palm-oil producer by 2007 replacing Malaysia
as its total production by then will reach more than 16 million tons,
an industry spokesman said.

"This is faster than our earlier expectation that it would happen in
2010," the chairman of the Association of Indonesian Palm Oil
Producers (Gapki), Derom Bangun, said on Monday.

He said by 2007, Indonesia's palm oil production was expected to reach
more than 16 million tons or an increase of 1.3 million tons compared
with this year's production of 14.7 million tons.

The cuntry's palm oil production in 2005 is expected to stay at 16.6
million tons, he added.

In the same year, Malaysia would produce only a maximum of 16 million
tons due to limited space , he said.

The increase would happen as most of the oil-palm trees at state-owned
, private and farmers' plantations in Sumatra, Kalimantan, Sulawesi
and Papua would start yielding fruits.

He said the total area of oil palm plantations weould this year reach
5.15 million hectares with most of the plantations to be found in Riau
province.

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Indonesia palm oil prices mixed, players sidelined

JAKARTA, June 20 (Reuters) - Indonesian palm oil prices were mixed on
Tuesday while players remained on the sidelines waiting for fresh news
on supply and demand, traders said.

At a local auction in North Sumatra's Medan, Indonesia's key port for
palm oil exports, crude palm oil was quoted around 3,925 rupiah
($0.419) a kg, up from 3,890 rupiah a kg last Friday. There was no
auction in Medan on Monday.

In Jakarta, CPO prices at the state marketing centre were quoted at
3,902 rupiah a kg, little changed from 3,907 rupiah a kg on Monday.

RBD palm olein in Jakarta was quoted at around 4,245 rupiah a kg,
little changed from 4,240 rupiah a kg on Monday.

"Players are in wait-and-see mode because there is no news that moves
the market right now. A few buyers showed up but only to replenish
stocks," said a trader in Medan.

Another trader in Jakarta said buyers were reluctant to take positions
as they were waiting for prices to go down further.

"The market is quiet because buying interest is thin. Buyers are
waiting for prices to fall," said the Jakarta trader.

On the export front, offers stayed at $390 a tonne for July shipment.
Buyers bid at $385 to $387.5 a tonne, but no deals were reported.

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Asian Rubber-Tokyo futures mostly up,Indonesia sells tyre-grade

JAKARTA, June 20 (Reuters) - Tokyo rubber futures were mostly higher
on Tuesday except for the benchmark contract, which fell on a stronger
yen against the dollar, traders said.

The benchmark distant November TOCOM rubber contract <0#JRU:> closed
at 295.3 yen ($2.57) per kg, down from 295.8 yen on Monday. Other
contracts rose between 2.3 and 6.1 yen.

"The yen is stronger and maybe that spurred liquidation selling (on
the November contract)," a dealer in Tokyo said.

A stronger yen normally prompts selling in Japanese rubber futures,
which sets the tone for global rubber prices.

The currency <JPY=> was quoted 114.77 yen per dollar versus 115.52 on Monday.

But strong immediate demand and lingering concern on tight supplies
from top producer Thailand lent support to the rubber market, traders
said.

"Supply seems to be uncertain. But there is big demand for nearby
shipment and that is holding the whole market," said the Tokyo dealer,
who put support at 290 yen and resistance at 305-310.

In the physical market, few deals were noted, with buyers waiting for
prices to stabilise.

"People see the rubber market is still volatile and prices can go up
again. So buyers will not buy much," said a trader in Jakarta.

Some deals were noted overnight for Indonesia tyre-grade SIR 20 at
102.5 U.S. cents per pound ($2.26 a kg), free on board Palembang in
South Sumatra for August shipment. Another deal was for September
shipment at 103.25 U.S. cents per pound ($2.28 a kg), free on board
Belawan port in North Sumatra.

On Tuesday offers for SIR 20 stood at between 102.75 and 103.50 U.S.
cents per pound for August shipment, free on board basis Palembang and
Belawan.

In Thailand wet weather persisted in some rubber-growing areas, which
might squeeze supplies.

"We have had some rains these few days in some areas and that will
affect supply a bit," said a trader in the southern Thai city of Hat
Yai.

Offers for Thai benchmark RSS3 rubber sheet were quoted at $2.70 per
kg, free on board, down from $2.73 on Monday.

Tyre-grade Standard Thai Rubber or STR 20 block for August shipment
was offered steady at $2.50 a kg, free on board.

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

The Jakarta Post
June 20, 2006

Seagate launches ten new products 

JAKARTA: Seagate Technology, the world's number one hard-drive maker, has 
launched ten new hard disc drives and servers with slim and compact designs 
accommodating large storage and fast connectivity. 

Seagate sales managing director for Asia Pacific, Kevin Lee, said here Monday 
that Seagate's 1.8-inch ST18 drive for portable media players could store 60 
gigabytes per platter, the 2.5-inch LD25 series drive 80 gigabytes and the 
3.5-inch DB35 series hard drive 750 gigabytes. 

The U.S.-based Seagate also introduced three new 2.5-inch Momentus series 
hard drives with storage capacities of up to 160 gigabytes. 

Lee said that the new Savvio 10K.2 and Barracuda ES drives would provide a 
significant boost in storage capacity for enterprises, while the Mirra Sync and 
Share Personal Server, and the miniature, yet massive, Seagate 8.0 gigabyte 
pocket drive -- two award winning solutions -- would allow customers to enjoy an 
on-demand world of digital content. -- JP 

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Joyo Indonesia News Service
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