[Kabar-indonesia] 16 RI Biz/Econ Reports: 6.3% Growth; Fisheries; 12.50% SBIs, Gajah Tunggal

[JoyoNews at aol.com]

16 reports:

- Indonesia Minister: 2007 Economic 
  Growth Likely 6.3%
- Bank Indonesia auctions 48.68 trln 
  rupiah 1-mth SBIs at fixed rate 12.50%
- JP: Fisheries ministry proposes 87.4% 
  budget increase 
- Indonesian parliament passes warehouse
    receipts bill - report
- India's TVS Motor may sell shares in
    Indonesian unit by 2009
- Moody's confirms PT Gajah Tunggal's
    B2 rating; Outlook negative
- Indonesian shipper Berlian plans Singapore
    listing
- Indonesia targets US$2.5 bln in electronics 
  investment by 2009
- Indonesia Indah Kiat: No Stake Sale
    Plan - Report
- JP: Balinese farmers use IT to grow 
  their business 
- Indonesia's JSX suspends trade in Davomas
    after share price spike
- Indonesia's Kereta Api, AP II to form
    JV for airport railway
- Gas supply crisis to hit Indonesia's
   fertilizer firm Petrogres
- Indonesia's Suparma invest $5 mln
   in facial tissue production
- Indonesia palm oil market sluggish on
   lack of fresh news
- Asia Rubber-Tokyo up on tight supply,
   physicals steady

Indonesia Minister: 2007 Economic Growth Likely 6.3%

JAKARTA, June 21 (Dow Jones)--The Indonesian government will target a
6.3% growth in gross domestic product for 2007, an acceleration from
5.9% expected this year, Finance Minister Sri Mulyani Indrawati said
Wednesday.

Mulyani told reporters that inflation rate is targeted to ease to 6.5%
next year from 8% projected this year, and that the average dollar
exchange rate against the rupiah would likely be IDR9,400, compared to
IDR9,300 forecast for this year.

The deficit in the central government's budget is expected to narrow
to 0.9% of GDP next year from 1.5% expected this year, she told
reporters. 

The government will formally propose to parliament next month that the
2007 government budget be based on those assumptions, as well on an
average Indonesian crude oil price of $60 per barrel, she said.

Mulyani added that the government will propose to spend IDR726.3
trillion next year, up from IDR689.8 trillion targeted this year.

Revenues are expected to rise to IDR693 trillion next year from
IDR647.4 trillion this year, she said.

The parliament and administration are expected to discuss the budget
draft and pass it before the 2007 fiscal year begins on Jan. 1.

The approved budget might be different from the government's proposal,
and could be revised during the course of the fiscal year to factor in
economic developments.

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Bank Indonesia auctions 48.68 trln rupiah 
1-mth SBIs at fixed rate 12.50 pct

JAKARTA, June 21 (XFN-ASIA) - Bank Indonesia said it has auctioned
48.68 trln rupiah worth of one-month Bank Indonesia Certificates (SBI)
at a fixed interest rate of 12.50 pct.

The SBI rate is pegged to the so-called BI rate, which has been used
as the new benchmark interest rate since last July, replacing the SBI
rate.

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

The Jakarta Post
June 21, 2006

Fisheries ministry proposes 87.4% budget increase 

The Jakarta Post, Jakarta

The Maritime Affairs and Fisheries Ministry proposed Tuesday an increase in 
its budget funding for next year of 87.4 percent to Rp 4.3 trillion (US$477 
million), as compared to last year's Rp 2.6 trillion.

Minister Freddy Numberi said in a meeting with the House budget committee 
that Rp 3.02 trillion of this would be spent on fisheries and maritime 
infrastructure development programs. 

These included the development of an integrated industry focused on shrimp, 
seaweed and tuna, the expansion of ports, and the development of communications 
and information technology for the industry, he explained. 

He said that the remaining Rp 1.2 trillion would be used to cover operational 
costs, as well as the cost of conservation and the rehabilitation of coastal 
environments. 

Some of the programs will be financed through loans and grants, which are 
expected to reach Rp 535 billion. The government, for example, was hoping to 
receive Rp 143 billion in loans from the Asia Development Bank (ADB) and the World 
Bank for a coral reef rehabilitation and management project, and another Rp 
117.5 billion in loans from the Spanish government for training in the fishing 
industry, he said. 

Regarding non-fiscal revenue from the maritime and fisheries sector, Freddy 
said the government hoped to collect Rp 263 billion in 2007, of which 95 
percent, or Rp 250 billion, was expected to come from the exploitation of natural 
resources in 2007. 

The 5.8 million square kilometers of ocean under Indonesia's sovereignty have 
the potential to yield 6.4 million tons of fish per year. However, the United 
Nation's Food and Agriculture Organization has set catch limits at 80 percent 
of the total potential yield of the area, or some 5.12 million tons per year. 

Nevertheless, the production of Indonesia's fishing industry remains low, at 
about Rp 46.6 trillion, or 2.21 percent of gross domestic product. 

According to some local players in the fishing industry, this is due in part 
to a lack of support from the government for the development of the industry. 

As of May, the ministry had only spent 7.51 percent of its Rp 2.6 trillion 
budget for 2006 due to a lack of coordination and poor management. 

In spite of the low level of spending, the ministry has nevertheless proposed 
the revision of the 2006 budget so as to provide it was an extra Rp 325.6 
billion, including Rp 175.6 billion in loans from the World Bank. 

"These loans are important for funding our ongoing projects," Freddy said, 
referring to a fishing port development in Jakarta province, a trade-support 
program and fishing industry training projects. 

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

Indonesian parliament passes warehouse receipts bill - report

JAKARTA, June 21 (XFN-ASIA) - The Lower House of Parliament (DPR) has
passed the bill on a warehouse receipt system into law to help farmers
seek funding, the Jakarta Post reported.

'With this new law, farmers can use their warehousing receipts to
secure loans,' the report quoted Trade Minister Mari Elka Pangestu as
saying.

She said farmers and small- and medium-scale companies often faced
difficulties in obtaining loans from banks as they lacked the
necessary physical assets to pledge collateral.

Under the legislation, a receipt issued by the management of a
designated warehouse for the storage of commodities can also be
employed by its owner as a tradable derivative.

It can also be used to settle maturing futures contracts on a
commodities exchange.

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India's TVS Motor may sell shares in Indonesian unit by 2009

NEW DELHI, June 21 (Bloomberg): TVS Motor Co., India's third-largest
motorcycle maker, may sell shares in a unit in Indonesia to raise
money for expansion in the Southeast Asian nation.

TVS, which is investing US$50 million to build its first factory
overseas in Indonesia, will need to raise money locally for future
expansion and plans an initial public offering for the unit by 2009,
Venu Srinivasan, the company's chairman, said in an interview in New
Delhi. The factory will begin production early next year, he said.

As competition in its home market increases, TVS is expanding into
Southeast Asia and Latin America. The Chennai, India-based company
plans to use Indonesia, the world's third-largest motorcycle market,
as a production hub for the countries in theAssociation of Southeast
Asian Nations.

"Over a period of time, we will need to expand the operations there,"
Srinivasan said Wednesday. "It's important to be seen as a local
company so we will raise money locally by loans and equity in
Indonesia in the future."

Indonesia accounts for about 15 percent of global sales of motorcycles
and scooters, lagging China's 42 percent and India's 18 percent,
according to TVS Motor's website. The factory in Indonesia will have
an annual production capacity of at least 120,000 units for making
small scooters.

"There is tremendous opportunity in Indonesia to use it as a hub for
the ASEAN region," Srinivasan said.

TVS last year borrowed $100 million to set up factories in Indonesia
and two new units in India. It also plans to start making
three-wheeled auto rickshaws next year to compete with Bajaj Auto Ltd.

The maker of motorcycles such as the Apache, Star and Victor, is also
planning a factory in Colombia.

TVS expects to sell 1.7 million motorcycles and scooters in India and
overseas in the year ending March 2007, a 27 percent gain from the
1.34 million it sold a year earlier, Srinivasan said. That will
include sales of a record 1 million motorcycles,he said.

To cut costs, TVS will import more components from China this year,
Srinivasan said. The company imports aluminum alloy wheels for its
motorcycles from China and is looking at importing electrical parts
and gears, brakes and other components from China, he said.

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

Moody's Investors Service Press Release
June 21, 2006

Moody's confirms PT Gajah Tunggal's B2 rating; Outlook negative

Moody's Investors Service has confirmed its B2 corporate family rating
for PT Gajah Tunggal Tbk GT (GT) and its B2 senior unsecured rating
for GT 2005 Bonds BV's US$325 million bonds guaranteed by GT. The
ratings outlook is revised to negative. This concludes the review for
possible downgrade commenced on 4 April, 2006.

"The initial review was in response to the weaker-than-anticipated
financial results reported by GT for the year ending 31 December
2005," says lead analyst Angela Choi, adding "The review was carried
out in accordance with Moody's global rating methodology for auto
suppliers. The confirmation of the B2 rating reflects GT's dominant
and competitive position in the Indonesian domestic tire market and
its expansion into global markets, coupled with its low cost structure
compared with global peers."

These positive factors are offset by the company's comparatively small
size on a global scale, high financial leverage and projected negative
free cash flow. In accordance with Moody's global rating methodology
for auto suppliers ("Rating Methodology: Global Auto Supplier
Industry," June 2005), GT is consistent with a single B rating.

"The final B2 rating further considers the company's weak liquidity
profile with a lack of back-up bank facilities, its history of debt
restructuring, as well as its exposure to exchange rate fluctuations,
albeit partially mitigated by its US$50 million hedging mechanism
recently put in place and its foreign currency revenue," says Moody's
lead analyst Choi.

The negative outlook reflects GT's high refinancing risk in the next 2
years. The company has approximately US$95 million of debts that will
mature before 2008 and needs to rely on external funding to meet its
repayment obligations. Moody's notes that failure to make an
appropriate refinancing arrangement would result in a possible rating
downgrade.

Furthermore, downward rating pressure could evolve if EBIT margin
falls < 5-7% and Adj. RCF (post WC)/Adj. Net Debt < 8% over the cycle.
This could be a result of: 1) industry downturn beyond Moody's
expectation, 2) inability to pass on further increases in material
costs, and thus a margin squeeze, 3) material devaluations of the
Rupiah, thereby directly increasing the company's debt-servicing
obligations, 4) unforeseen increase in product liabilities, 5) the
plant expansion program resulting in cost and time over-run, and/or 6)
GT adopting an aggressive dividend payout policy by returning funds to
shareholders.

The likelihood of a rating upgrade is limited in the near term given
the current negative outlook. The outlook would revert to stable if GT
put in place an appropriate refinancing arrangement, such as a
medium-term bank loan or new equity to cover its maturing debts in the
next 2 years while maintaining its current operating and financial
profiles

P.T. Gajah Tunggal TBK, based near Jakarta, Indonesia, is a
manufacturer of motorcycle and motor vehicle tires for both domestic
and export markets.

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

Indonesian shipper Berlian plans Singapore listing

JAKARTA, June 21 (Reuters) - Indonesian shipping firm PT Berlian Laju
Tanker Tbk plans to list a 20 percent stake on the Singapore stock
exchange in October to raise funds for planned capital spending,
including buying new ships.

Widihardja Tanudjaja, the company's president director, declined to
say on Wednesday how much the company planned to raise from selling
between 500-700 million shares.

Based on Berlian's Wednesday close, the offering could raise up to
1.13 trillion rupiah ($121 million).

"Shareholders have approved our plan to list in Singapore. It will be
a dual listing with the Jakarta exchange," Tanudjaja told Reuters.

He said the proceeds from the Singapore public offering would be used
to help finance its capital expenditure for this year, which is
estimated at up to $400 million.

The shortfall will be funded through bank loans.

The capex would be used to grow the business, including buying new
ships. Berlian aims to acquire 15 new ships between now and 2009,
expanding its current fleet of 55 ships.

UBS and Deutsche Securities will act as underwriters.

Berlian's shares have risen 56 percent so far this year, outpacing an
11.2 percent gain on the Jakarta exchange <.JKSE>.

The stock trades at 7.5 times forecast earnings, according to Reuters
data, compared with a shipping sector average in Asia Pacific of twice
that.

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

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.

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

Indonesia Indah Kiat: No Stake Sale Plan - Report

JAKARTA, June 20 (Dow Jones)--PT Indah Kiat Pulp & Paper (INKP.JK) has
denied a recent media report that it planned to sell a 30% stake to
International Paper Co. (IP), the Antara news agency reported
Wednesday.

Indah Kiat also told the Jakarta Stock Exchange the company has no
plan to buy shares in another company, Antara said.

A recent media report said that Indah Kiat would sell a 30% stake to
pay its debts to the government, Antara said, without specifying the
source of the report.

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

The Jakarta Post
June 19, 2006

Balinese farmers use IT to grow their business 

The Jakarta Post, Jakarta

High in the small mountain village of Pancasari, some 50 kilometers north of 
Denpasar, the stocky fingers of a young Balinese farmer are dancing on a 
computer keyboard, typing the contents of a web site.

I Wayan Kanten, 29, once saw computers as strange and daunting. He never 
thought of using one to help his farm business. But he has lost his fear of 
technology. Now,the head of the Young Independent Farmers Group (Kelompok Tani Muda 
Mandiri) knows how to build a web site to promote the 12-member group's 
organic capsicum pepper business. 

"At first I didn't know what to do with a computer, but now I wish I had 
learned about them a long time ago," Kanten said. 

In the heart of the information era, when lots of young people see farming as 
traditional and old-fashioned, Kanten and his friends use the latest 
technology to learn about organic farming, and to find contacts through the Internet 
to distribute their products. 

Kanten's first encounter with computers was when the software company 
Microsoft, working with the Mitra Mandiri Foundation, set up a Community Training and 
Learning Center (CTLC) last June in Pancasari. The facility is equipped with 
a half-dozen computers, a printer, and an Internet connection. 

Microsoft flew Kanten to Jakarta for computer training, along with young 
community leaders from Gianyar, Bali; Bojonegoro,East Java; and Parapat, North 
Sumatra. It was part of the company's Unlimited Potential program, which aims to 
introduce computer technology to people in rural areas worldwide to help 
communities improve their quality of life. Since 2003, the company has been working 
with institutions, including the Asia Foundation of the United States and the 
Indonesian Coalition for Women, to set up community training centers. So far, 
Microsoft has opened 33 centers across Indonesia and trained more than 4,000 
people. 

Now in Pancasari, the knowledge has spread to 286 young farmers. 

Kanten and his friends tend to their peppers in greenhouses during the day 
and teach village youngsters how to use the computer at night. "We also train 
youngsters here to love farming," Kanten said. The villagers participating in 
the training are charged Rp 50,000 (about US$5.40) for 15 classes. 

"Part of the aim of the program is to curb urbanization and provide ways for 
people to improve their quality of life through technology," Microsoft 
Indonesia spokesperson Cynthia Iskandar told The Jakarta Post. 

Growing up in this rural village with a population of 4,000, Kanten and his 
fellow farmers dreamed of moving on to someplace bigger. 

"I never wanted to become a farmer. My dream was to work in a city," said 
Ketut Wiryantara, 29, who has a bachelor's degree in economics and a diploma in 
tourism. 

Kanten, who also has a degree in economics, said he too had wanted a white 
collar job in a city. 

He said since the Bali bombings in 2002 and 2005 hurt the tourism business, 
people have been coming back to their villages. 

Now, Ketut and Kanten have forgotten about the lure of the city and are 
staying in Pancasari, supplying almost their entire crop of 300 kilograms of 
organic capsicum per week to PT DIF Nusantara, a supplier of fresh vegetables to 
hotels and supermarkets in Bali, Lombok and Java. 

"Our group first made contact with PT DIF through e-mail," Kanten said. "Just 
one week after that, they came to Pancasari and told us they would like to 
buy our entire crop," he said. 

The two-year-old farmers' group borrowed Rp 150 million in capital from the 
Bali Organic Farmers Foundation (Yayasan Petani Organik Bali), which Kanten 
also contacted by e-mail, to establish six greenhouses. 

The group has been growing capsicum in greenhouses for seven months. They 
have harvested 11.5 tons of capsicum. The distributor wants them to supply 1.5 
tons per week, but the group's production capacity has yet to reach that amount. 

"We have just set up a cooperative for our group, so the farmers can borrow 
money to build more greenhouses," Ketut said, adding that four more greenhouses 
are being built. 

He said one greenhouse costs Rp 25 million to Rp 35 million. "We expect a net 
profit of Rp 7 million per unit per year," Ketut said, adding that total 
sales from February to June were Rp 60 million. 

The head of the Bali Organic Farmers Foundation, Joko Trisayoga, said the 
farmers' group in Pancasari had wider knowledge and was more innovative than 
other groups under his guidance. The foundation serves 26 farmers' groups. 

"There are lots of other areas that need access to information and technology 
so the farmers in those areas can also improve their business," he said. 

Indeed the digital divide between urban and rural areas in Indonesia, as well 
as between the haves and the have-nots, is wide. Only 2 percent of the 
population of 215 million have personal computers. Only 16 million people, mostly in 
big cities,have access to the Internet. 

Cynthia said setting up CTLCs was one way to bridge the gap. "CTLCs can help 
people in the rural areas get access to information, which in the end can help 
them develop their businesses," she said. 

She said besides the success story in Pancasari, a peanut farmer in 
Bojonegoro and a small- and medium-enterprise group in Surabaya also used the internet 
connections at area CTLCs to market their products. 

"All this is because they had access", Cynthia said. 

Ketut cannot agree more, saying," The one with the information is the one who 
wins."  

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

Indonesia's JSX suspends trade in Davomas after share price spike

JAKARTA, June 21 (XFN-ASIA) - The Jakarta Stock Exchange (JSX) said it
has suspended trading in the shares of cocoa powder and butter
producer PT Davomas Abadi after a recent "significant price rally."

JSX said that at yesterday's closing level of 530 rupiah, Davomas'
share price has gone up 120.83 pct since May 29, and was up 12.77 pct
from June 14.

The stock had previously been suspended on June 15 for the same reason.

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

Indonesia's Kereta Api, AP II to form JV for airport railway

JAKARTA, June 21 (Asia Pulse/Antara) - State railway company PT Kereta
Api (PT KA) and state airport managing company PT Angkasa Pura (AP) II
eventually reached agreement on the setting up of a joint venture to
build an airport railway project.

"The joint venture will build a railway system in three airports,
namely Soekarno-Hatta (Jakarta), Kuala Namu (Deli Serdang-North
Sumatra) and International Minangkabau airport (Padang)," president of
PT KA Ronny Wahyudi said here Tuesday.

He said that the joint venture comprising the two state companies will
this year start building a railway project at the Soekarno-Hatta
airport.

He also said that in the joint venture, PT KA has a 60 pct stake, and
the rest controlled by PT AP II.

The PT KA - AP II joint venture will provide the means and
infrastructure and operate the airport railway system, which will
cover the 25-km distance between Manggarai and the airport and will
cost Rp 1 trillion. Completion is scheduled in two years (end of
2008).

Ronny also said that the project has become urgent because the
passengers at the airport have reached 26 million each year.

"In the meantime, the Ministry of Transportation will contribute to
the building of infrastructure and act as facilitator in teaming up
with the private sector in the procurement of the necessary means and
facilities," Ronny said.

Earlier, Minister of Transportation Hatta Rajasa has said that the
government had made a commitment to build various infrastructure
projects like double railway tracks, flyovers, and repairing the
existing damaged signalling system.

Hatta also pointed out that in the realization of these projects,
priority will be given to national private businesses.

A number of investors interested in these projects include the
Bukaka-Siemens consortium, state railway company PT Industri Kereta
Api (INKA), and some German and British investors.

When contacted on a different occasion, Commercial and Business
Development Director of AP II Tulus Pranowo said that in the
realization of the airport railways system the most serious problem
would be posed by clearing the 9.3-km Kalideres-Cengkareng road.

He also said that the joint venture dubbed Railink, was originally
meant only for the Soekarno-Hatta airport.

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

Gas supply crisis to hit Indonesia's fertilizer firm Petrogres

JAKARTA, June 21 (Asia Pulse/Antara) - East Java-based fertilizer
company PT Petrokimia Gresik (Petrogres) producing urea and other
fertilizers is expected to reach the brink of collapse in October 2006
due to lack of gas supply from PT EMP Kangean, a gas producer, its
president director said here Tuesday.

"With indication of the drop in gas supply from Kangean, we are afraid
that in October the gas supply will not be enough to operate the
factory," Arifin Tasrif, Petrogres president director, said.

"We are trying to obtain gas from other sources," Tasrif said, adding
that he had requested the Mineral and Gas supplying agency to have
other sources of gas in East Java.

According to Tasrif, if the problem of gas supply cannot be overcome,
it would hamper the production process of urea and non urea
fertilizer.

Apart from its production capacity of urea of 460,000 tons per year,
PT Petrogres also produced other subsidized non urea fertilizer like
ZA for 600,000 tons per year, NPK Phonska for 300,000 tons per year
and SP-36 totalling 900,000 tons per year, he said.

Asked by a journalist why Petrogres did not source gas from other
suppliers, like PT Pupuk Inskandar Muda (PIM) has done, Tasrif said it
would only disturb the other company.

Gas supply from EMP Kangean has continued to decline by about 3 mmscfd
per month, and if additional gas supply is not found, it is expected
that Petrogres will be unable to operate by October or November,
leading to a decline it the production of non-urea fertilizers.

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

Indonesia palm oil market sluggish on lack of fresh news

JAKARTA, June 21 (Reuters) - Indonesian palm oil market remained
lacklustre as absence of fresh supply and demand news kept players
mostly on the sidelines, traders said on Wednesday.

Crude palm oil prices at a local auction in North Sumatra's Medan,
Indonesia's key port for palm oil exports, was quoted at 3,920 rupiah
($0.419) a kg, little changed from 3,925 rupiah a kg on Tuesday.

The state marketing centre did not hold an auction on Wednesday due to
thin stocks as some state plantations are undergoing replanting,
lowering output, said Bagas Angkasa, director of the centre.

"The palm oil market has been sluggish these days, so we decided not
to have auction today," said Bagas.

The state marketing centre in Jakarta sells palm oil from state plantations.

In Jakarta, RBD palm olein was offered around 4,200 rupiah a kg, but
no deals were reported.

Lack of demand from major buyers such as India and China has stalled
export activity with offers for July shipment stayed at $390 a tonne,
free on board at Belawan port. Buyers bid at $385 a tonne, but no
deals were reported.

Offers for August/September shipment stood at $392.5 a tonne against
bids of $387.5. No deals were reported.

"Stocks are in abundance everywhere in Europe, in India. India also
prefer to take soyoil after they cut base price for soyoil imports,"
said a trader in Jakarta.

India last week cut base import prices for both palm and soybean oils.
The price of crude palm oil has been lowered to $424 a tonne from
$430, while that of crude soybean oil has been cut to $542 a tonne
from $559, the government said in a statement.

India, the world's leading edible oils importer, buys palm oils from
Malaysia and Indonesia, and soyoil from Argentina and Brazil.

Palm oil and soyoil compete for exports and their prices often move in step.

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Asia Rubber-Tokyo up on tight supply, physicals steady

SINGAPORE, June 21 (Reuters) - Japanese rubber futures ended higher on
Wednesday on tight supplies in Southeast Asia as the benchmark
contract stayed above a key support level of 280 yen despite pressure
from a firm yen.

Physical prices were mostly steady, with a shortage in raw material in
main producers Thailand and Indonesia likely to offer support for tyre
grade in coming days. Dealers noted deals for Indonesia's SIR20 for
July and August shipments.

The benchmark distant November 2006 TOCOM rubber contract <0#JRU:>
ended 0.5 yen a kg higher at 295.8 yen ($2.58) a kg. The contract had
touched an intraday high of 298.6 yen, but remained below a 26-year
high of 324.5 yen hit in mid-May.

The yen extended gains against the dollar after the Bank of Japan's
chief signaled the central bank is on course to raise interest rates
for the first time in six years, possibly as soon as July.

The dollar hit a low of 114.38 yen before rebounding to 114.65 yen
<JPY=>, still down from around 114.95 yen in late U.S. trade. A
stronger yen normally prompts selling in Japanese rubber futures,
which sets the tone for global rubber prices.

Traders are looking at a strong resistance of 300 yen. "We saw some
technical buying and I guess support level should be somewhere around
280 to 285 yen," said a dealer in Thailand's southern city of Hat Yai.

"The rain has come back again and the weather is very unpredictable.
Supply is tight," he said.

Offers for Thai benchmark RSS3 rubber sheet were steady at $2.70 per
kg, free on board for August shipment. Tyre-grade Standard Thai Rubber
or STR20 block for August shipment was also steady at $2.50 a kg, free
on board.

In neighbouring Malaysia, SMR20 was steady at between $2.40 and $2.45 a kg.

Some deals were noted on Wednesday for Indonesia's SIR20, but there
were no details on buyers.

SIR20 was sold at 102.75 U.S. cents per pound ($2.26 a kg) free on
board at Palembang port in South Sumatra for July shipments. SIR20 was
also traded at 104.25 cents FOB at Belawan port in North Sumatra and
Surabaya port in East Java for August shipments.

SIR20 was sold late on Tuesday at 103.5 cents per pound for
July/August shipments, FOB at Belawan port. September rubber SIR20 was
traded at 103.75 cents.

"It's hard to find raw material these days. Singapore buyers are
willing to buy at 104 to 104.25 cents for September and October
shipments but most sellers will only let go at 104.75 to 105 cents,"
said a dealer in Padang in West Sumatra.

In China, the most active September rubber contract on the
Shanghai Futures Exchange rose 155 yuan per tonne to end 
at 24,370 yuan ($3,048), tracking gains in Tokyo.

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Joyo Indonesia News Service
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