[Kabar-indonesia] 18 Biz/Econ Reports: Cemex; BI: Rate Still Attractive; Garuda; China-Aust FTA

[JoyoNews at aol.com]

18 Reports:

- Indonesia gives verbal approval for sale 
  of Cemex stake in Semen Gresik
- Bank Indonesia: Current Interest Rate
     Still Attractive
- Indonesian govt may opt for haircut in
     restructuring Garuda's debt
- China, Australia Agree to Step Up
  Free-Trade Talks
- FDI in Indonesia's automotive sector 
  US$316 mln in 5 months
- Indonesia's Indosat approves 2005
    dividend
- Telekom Malaysia says no immediate plans
     for further expansion abroad
- Indonesia's Bank Panin EGM approves rights
     issue plan, div omission
- Indonesia's Semen Gresik to construct 
  2.802 trln-rupiah cement plant on Java
- Indonesian chamber seeks bigger role in
    int'l negotiations
- Indonesia to speed up launch of export-import
    agency
- Indonesian textile makers suspected of illegal
    transshipment
- Indonesia's Gajah Tunggal earmarks 
  30-40 mln usd capex for this year - report
- Indonesia Assoc:La Nina May Cut Rubber Output
    By Over 15%
- Indonesia palm oil firms on rupiah,
    Malaysia
- Indonesia, Australia agree to tighten 
  illegal fishing surveillance
- Asian Outbound tourism growth soars
- Global tourism sector expands 4.5 percent
    January-April on Asian recovery

Indonesia gives verbal approval for sale 
of Cemex stake in Semen Gresik

JAKARTA, June 29 (AFP) -- Indonesia has given verbal approval to
Mexican cement maker Cemex SA to sell a 24.9 percent stake in
Indonesia's Semen Gresik to the Rajawali group, a Rajawali executive
said Thursday.

"The minister has verbally said that the government approved of the
sale," Daryoto Setyawan, Rajawali's managing director and chief of
business development, told AFP.

Setyawan said approval was given by the minister of state enterprises
during a meeting on Wednesday and a document to that effect was being
prepared. The closing date is slated for July 3.

Cemex agreed to sell its stake to Rajawali for 337 million dollars
last month after a prolonged dispute with the Indonesian government.

The company decided to pull out of Semen Gresik amid a long dispute
with the Indonesian government over a failed put option that would
have allowed it to gain a controlling stake in 2001.

Cemex acquired a 14 percent stake in the Indonesian firm in 1998 and
later raised it to its current level as part of a deal in which
Jakarta promised to relinquish more shares.

But Cemex's attempt to buy another 51 percent was thwarted when the
government declined to sell due to domestic protests.

The prolonged uncertainties surrounding the sale led Cemex to file an
arbitration petition against Indonesia at the International Center for
Settlement of Investment Disputes in Washington in 2003.

Cemex dropped the case earlier this month.

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Bank Indonesia: Current Interest Rate Still Attractive

JAKARTA, June 29 (Dow Jones)--Bank Indonesia Deputy Governor Hartadi
Sarwono said Thursday that the interest rate differential between
Indonesia and the U.S. is still wide enough to attract investment.

"I expect, given current situation, the spread between our interest
rate and the rate in the U.S. won't hurt the appetite for investment
here," he told reporters.

Bank Indonesia's policy one month rate is now at 12.5%, compared with
the U.S. overnight federal funds target rate of 5%.

The U.S. Federal Reserve is widely expected to increase the policy
rate by another 25 basis point later Thursday.

Hartadi said Bank Indonesia is even considering cutting its key
interest rate to reflect easing inflationary pressure expected in the
coming months. The central bank last reduced the benchmark one month
rate in May, cutting it by 25 basis points.

"There is still room for an interest rate cut," Hartadi said.

Bank Indonesia board of governors will meet early next month to decide
on whether to adjust the rate.

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Indonesian govt may opt for haircut in restructuring Garuda's debt

JAKARTA, June 29 (Asia Pulse/Antara) - State Minister of State
Enterprises Sugiharto said the government will try a haircut option in
restructuring national flag carrier PT Garuda Indonesia's debts.

"Actually, we are aiming at the haircut option," Sugiharto told a
hearing with House Commission VI in Jakarta on Tuesday.

He said a haircut is one of four options in the settlement of Garuda's
problems, but it is still a question whether or not the creditors
would accept it.

Another option would be for the government to inject capital by
issuing an undertaking letter, or by a debt to equity swap.

"If a haircut is accepted, there would be no need to dilute the
government's stake in Garuda," Sugiharto said.

Garuda's debts to its creditors have reached US$791 million, including
US$510 million in debt to the Export Credit Agency (ECA), US$130
million to the holders of promissory notes, and the rest to Bank
Mandiri and airport management company PT Angkasa Pura II.

Garuda is also unable to pay its US$55 million debt to its
Singapore-based creditors which matured at end of December 2005.

Sugiharto said the government would continue negotiations on long-term
debt payments, or to have the interest rates lowered.

Nevertheless, Sugiharto said, Garuda's operational condition has
improved which is indicated by its increased efficiency.

"In this case (efficiency), we would not hesitate in taking firm
measures against any member of the company's management who had
committed a moral hazard," Sugiharto pointed out.

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Dow Jones Newswires
June 29, 2006

China, Australia
Agree to Step Up
Free-Trade Talks

By BARBARA ADAM

SHENZHEN -- China and Australia agreed to accelerate continuing free-trade 
talks, despite several sticking points.

Australian Prime Minister John Howard, in China to mark the arrival of the 
first shipment of liquefied natural gas under Australia's biggest-ever export 
deal, and Chinese Premier Wen Jiabao both said they were optimistic that trade 
talks could reach a successful conclusion.

But Mr. Howard warned China it must offer some "movement" on Australian 
access to China's agriculture and services markets, saying Australian trade 
negotiators would reciprocate with similar concessions in manufacturing.

The two leaders officiated at a "startup ceremony" at Cnooc Ltd.'s LNG 
receiving terminal in Dapeng, in the southern Chinese province of Guangdong, where 
Australia's North West Shelf project will send A$25 billion (US$18.3 billion) 
of liquefied natural gas over the next 25 years.

Chinese natural-gas use is expected to rise 26% annually over the next five 
years, outstripping a projected 17% growth in output, according to Chinese 
government forecasts. Australia, meanwhile, aims to increase its gas exports 
fourfold in the next 15 years and is on track to supply 30% of Asia's LNG by 2020.

Mr. Wen said he hoped China could further expand its energy cooperation with 
Australia to upstream areas, including mining and renewable energy. During a 
visit to Australia in April, Mr. Wen signed a pact that will allow Australian 
uranium to be exported to China to supply power stations.

"Australia is a stable, reliable, competitive supplier of energy," Mr. Howard 
told the ceremony. "We deliver our commodities on time, we deliver them 
safely and we deliver them according to prearranged and agreed prices."

The price of Australian LNG has more than doubled since 2002 when China 
struck the LNG-supply agreement with the North West Shelf project and Mr. Howard's 
visit to China has coincided with renewed speculation the world's 
fastest-growing economy wants to renegotiate LNG contracts.

Guangdong Dapeng LNG Co. President Thomas M. King said the North West Shelf 
contract didn't contain any clauses that allow negotiations to reopen.

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

FDI in Indonesia's automotive sector US$316 mln in 5 months

JAKARTA, June 29 (Asia Pulse/Antara) - Implementation of foreign
direct investment (FDI) projects in the automotive sector was valued
at US$316 million in the first five months of this year.

The FDI implementation in the five month period was nearing the amount
of US$359.7 million recorded in the whole of last year, data at the
investment board (BKPM) show.

The automotive sector contributed 10.1 per cent to the total value of
FDI projects implemented in the January-May period.

Implementation of domestic investment in the sector was valued at
Rp116.6 billion (US$12.8 million) in the same period.

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

Indonesia's Indosat approves 2005 dividend

JAKARTA, June 29 (Reuters) - Shareholders of Indonesia's second
largest telecommunications company, PT Indosat Tbk , approved on
Thursday a 2005 dividend payment of 149.32 rupiah ($0.02) per share.

That works out to a total dividend payout of 810 billion rupiah, or 50
percent of Indosat's net profit last year, Indosat's director Wahyu
Wijayadi told reporters.

Indosat, 42 percent owned by Singapore's ST Telemedia, booked a net
profit of 1.62 trillion rupiah last year, down 0.6 percent from 2004.

The company has 14 million subscribers, out of the country's 50
million mobile phone users.

Indonesia's telecoms sector has been growing at a healthy clip and
analysts expect it to continue to grow at the same pace because of the
low mobile penetration level in the country.

After the industry's 50 percent growth in subscribers last year, many
are optimistic the number of mobile phone users in the country of 220
million could reach 100 million by 2010.

Indonesia's mobile phone penetration rate is around 21 percent, much
lower than its peers in the region.

Malaysia has about two-third of its population subscribing to the
service while some 46 percent of Thailand's population is using mobile
phones.

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

Telekom Malaysia says no immediate plans for further expansion abroad

KUALA LUMPUR, June 29 (AP) - State-owned Telekom Malaysia has no
immediate plans to further expand abroad following recent acquisitions
in India and Indonesia, a top executive said Thursday.

"At the moment, we are focusing on our investments in Indonesia and
India. A lot of work needs to be done there but from time to time, we
will still look out for opportunities," Telekom chief executive Abdul
Wahid Omar was quoted as saying by national news agency Bernama.

Telekom bought a controlling stake in Spice Telecom Ltd., India's
seventh largest cellular phone company, earlier this year as part of
efforts to become a regional player. It also holds a 60 percent stake
in Indonesia's third biggest cellular phone company, PT Excelcomindo
Pratama, and has investments in Singapore and Thailand.

With 75 cellular subscribers for every 100 people, Malaysia's market
is near saturation, pushing Telekom and other Malaysian
telecommunications firms to grow revenue from emerging markets,
analysts say.

Asked if Telekom plans to raise funds in the capital market, Wahid
said: "We have a sizable cash balance and will not tap the market
anytime soon."

Wahid said Telekom Malaysia would introduce more products, especially
in the broadband sector, to cushion its declining fixed line revenue
in the domestic market. There are about 610,000 broadband users in
Malaysia and the number is growing, he added.

At the end of 2005, the Telekom group had more than 20 million
customers -- 6.9 million in Malaysia and 13.6 million overseas -- a
158 percent increase from the 7.9 million users in 2004. The number of
fixed line customers was 4.4 million.

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

Indonesia's Bank Panin EGM approves rights issue plan, div omission

JAKARTA, June 29 (XFN-ASIA) - PT Bank Panin said its shareholders have
approved a plan to sell 4.01 bln new shares via a rights issue aimed
at raising 1.4 trln rupiah.

Proceeds will be used to strengthen the bank's capital.

In a statement, it said shareholders have also agreed to omit payment
of a 2005 dividend as a consequence of the rights issue plan.

The bank will retain last year's net profit to further boost its
capital, it added.

The bank booked a net profit of 505.79 bln rupiah last year compared
to 877.08 bln in the previous year.

Earlier, the bank said its controlling shareholder PT Panin Life,
which owns a 42.18 pct stake in the company, was also proposing a
rights issue. Panin Life plans to use a portion of the proceeds,
expected to reach 1.49 trln rupiah, to buy new shares that will be
issued by Bank Panin.

Bank Panin corporate secretary Jasman G. Munthe said Panin Life
shareholders had also approved the insurer's rights issue plan earlier
in the day.

"Therefore Bank Panin's rights issue plan will go ahead," he told XFN-Asia.

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Indonesia's Semen Gresik to construct 2.802 trln-rupiah cement plant on Java

JAKARTA, June 29 (XFN-ASIA) - PT Semen Gresik says it will start
constructing a cement plant on the island of Java next year at a cost
of 2.802 trln rupiah.

A written statement says the new plant, due to be completed in 2011,
will have a capacity of 2.5 mln tons of cement per year, raising the
company's total capacity to 15.82 mln tons per year.

Internal cash will cover 35 pct of the cost and a loan from a bank or
other financial institution will cover the rest.

In the new plant's first year, the company's sales volume is expected
to increase by 1.8 mln tons, assuming that the plant will operate at
70 pct of capacity.

"The operation of the new plant will automatically increase the
company's revenues and subsequently the company's profit margin," the
statement says.

Construction of the new plant is in line with the company's aim of
increasing shareholder value and supporting the government's
infrastructure plans, according to the statement.

"The company and national production capacity is projected to face a
shortage in the next few years," it says.

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

Indonesian chamber seeks bigger role in int'l negotiations

JAKARTA, June 29 (Asia Pulse/Antara) - The Indonesian Chamber of
Commerce and Industry (Kadin) is asking the government to increase the
involvement of the business world in international negotiations so
that the talks will be of greater benefit to the nation and national
businessmen, a spokesman said.

"Indonesian negotiation teams often lack accurate data and Kadin will
therefore pro-actively provide up-to-date data," Kadin deputy chairman
for trade and distribution affairs Ketut Suardana Linggih said here on
Wednesday.

He said Kadin was preparing a blueprint on the industrial situation at
home, a roadmap as well as a vision for 2030 which were all expected
to become an input for the country's teams in negotiating various
regional and multilateral cooperation schemes in the economic,
investment and trade fields.

"We want to provide realistic data prepared by the business world so
that the government will not take data from the Central Bureau of
Statistics (BPD) only," he said.

He said Kadin hoped the government would also involve lawyers who were
experts in international law so that Indonesian negotiation teams
would always enter international talks well prepared.

"We don't want Indonesian teams to make fools of themselves again in
international negotiations. Therefore, Kadin will actively provide
accurate business data so that Indonesia' will always be in a strong
bargaining position," he said.

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Indonesia to speed up launch of export-import agency

JAKARTA, June 29 (Asia Pulse/Antara) - The government has decided to
speed up the process of establishing the Indonesian Import Export
Agency, with the Indonesian Export Bank (BEI) as the embryo.

The plan had been included in the Financial Sector policy of the
government to be released by the end of 2006, BEI President Arifin
Indra said.

The draft law on the export import agency would be submitted to the
House of Representatives this year and debate on the draft law was
expected to take place in 2007.

The existence of the export import agency was vital, mainly to finance
mid-term investment credits with low interest to support the
government's program to boost exports as the main driving force for
economic growth.

Most Indonesian banks, including the BEI, could not easily issue
long-term credits, as they were hampered by banking regulations,
especially as most of them had short-term funds.

If the BEI had become an export-import bank ,it would be easier to
secure long term and cheap funds, he said.

The BEI has already signed syndicated a loan agreement with 15 banks
in Singapore to finance its export credits.

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Indonesian textile makers suspected of illegal transshipment

JAKARTA, June 29 (Asia Pulse/Antara) - The Indonesian Textile
Association (API) said it has found evidence that eight Indonesian
textile and garment companies have committed illegal transshipment of
foreign textile products.

Transshipment generally involves countries facing import restrictions
in countries of destination, API secretary general Ernovian G. Ismy
said apparently referring to China, which has been imposed with quota
restriction by the United States.

Ernovian said API has used independent agency to collect evidence of
illegal transshipment involving eight textile companies including two
API members.

The evidence will be submitted to the trade ministry, he said.

Earlier Metal, Machine and Multifarious Industries Director General
Ansari Bukhari said the Chinese government has asked Indonesia to
collect data about alleged transshipment of Chinese textiles to
Indonesia to be re-exported to other countries.

The data are expected to be available to be discussed when China and
Indonesia in hold bilateral meeting in August, Anshari said.

He said the Chinese government pledged support for efforts to
eliminate illegal transshipment.

Indonesian textile producers have complained about large illegal
imports of textile products from China.

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Indonesia's Gajah Tunggal earmarks 30-40 mln usd capex for this year - report

JAKARTA, June 29 (XFN-ASIA) - Tire maker PT Gajah Tunggal may allocate
capital expenditure of around 30-40 mln usd this year to raise its
production capacity, company director Catharina Widjaja told Bisnis
Indonesia.

She said funding will come from the firm's internal cash flow plus
remaining proceeds from last year's bond sale.

The report said Gajah Tunggal is under contract with Michelin to sell
it 5 mln radial tires a year until 2010.

"There is room for business growth and we will focus on the
replacement market," she said.

Gajah Tunggal is planning to gradually increase radial tire output to
45, 000 per day by 2009 from the current 30,000, she said.

"As for motorcycle tires, we plan to increase capacity to 105,000 per
day from the current 30,000," she said, adding that for this year the
aim is to boost output to 45,000 per day.

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Indonesia Assoc:La Nina May Cut Rubber Output By Over 15%

JAKARTA, June 29 (Dow Jones) -- Indonesia's natural rubber output
could be reduced by more than 15% this year if heavy rains resulting
from the La Nina climate change phenomenon were to spread into the
main producing areas, an industry official said Thursday.

La Nina refers to the appearance of colder-than-average sea surface
temperatures in the central or eastern equatorial Pacific region, the
opposite to conditions during an El Nino weather phenomenon.

The rubber industry fears that unusually heavy rains attributed to La
Nina could spread to the country's west, said the official.

"If it were only to continue for a week to a month, production would
fall by around 10%-15%," he said. "If it were longer than that, who
knows."

The key rubber producing regions of Sumatra and west Kalimantan are
currently in the peak growing season, said the official.

Rain and floods have wreaked havoc on Indonesia's agricultural
commodity production this year, but so far have been confined to the
nation's northern and eastern islands, away from major natural rubber
growing areas.

Industry officials estimate Indonesia's coffee and cocoa crops down
30% and 10% on-year respectively, as growing areas of both commodities
were damaged by floods.

However, while La Nina is a worry for the natural rubber industry,
growth and export targets remain firmly on track, despite flooding in
the minor rubber growing province of East Kalimantan last week, said
Suharto Hunggokusumo, executive director of the Indonesian Rubber
Association, or GAPKINDO.

"Local production will be affected" by the floods in Kutai regency, he
said. "But it won't affect overall output, as that is a minor growing
area."

GAPKINDO's on-year growth target of 7% to around 2.4 million tons was
"very likely to be reached," he said.

Around 10% of output was likely to go to local industry and 90% to
export, he said.

Indonesia accounted for 23.3% of global rubber output in 2005, up from
22.3% in 2004, according to GAPKINDO data.

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

Indonesia palm oil firms on rupiah, Malaysia

JAKARTA, June 29 (Reuters) - Indonesian palm oil prices were mostly
firm on Thursday as the rupiah currency lost ground against the U.S.
dollar and Malaysia crude palm oil futures gained on soyoil, traders
said.

In North Sumatra's Medan, Indonesia's key port for palm oil exports,
crude palm oil was quoted at 3,932 rupiah ($0.421) a kg at a local
auction, little changed from 3,930 rupiah a kg on Wednesday. Some
1,500 tonnes of CPO changed hands at the auction.

At the state marketing centre's auction in Jakarta, CPO prices were
quoted at 3,915 rupiah a kg, up from 3,908 rupiah a kg on Wednesday.

In Jakarta, RBD palm olein was quoted between 4,250 and 4,300 rupiah a
kg, compared to 4,285 rupiah a kg on Wednesday.

Sluggish demand, however, prevented prices from rallying despite
support from Malaysian crude palm oil futures and the weakening
rupiah.

"Fresh buying interest has not yet emerged. Buyers are still cautious
on the market," said one trader in Medan.

Malaysian crude palm oil futures rose at midday on Thursday in line
with firm soyoil prices at the Chicago Board of Trade, with the
benchmark third-month September <KPOU6> contract rising nine ringgit
to 1,476 ringgit ($401) a tonne.

The rupiah was quoted at 9,365 per dollar on late Thursday versus
9,338 rupiah on Wednesday. A weakening rupiah against the dollar makes
palm oil -- traded in dollars -- more expensive in rupiah terms.

On the export front, deals were noted for July and August shipments at
$387.5 a tonne and $390 a tonne respectively, free on board Belawan.

Details on the quantity and destination were not available.

Sellers offered July shipment and August shipment at $392.5 a tonne
and $397.5 a tonne respectively.

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Indonesia, Australia agree to tighten illegal fishing surveillance

JAKARTA, June 29 (Asia Pulse/Antara) - The governments of Indonesia
and Australia have agreed to increase cooperation in the supervision
of illegal fishing in their respective territorial waters.

The agreement was reached during a meeting between the Indonesian
Minister of Fisheries and Marine Resources Freddy Numberi and his
Australian counterpart, Forestry and Conservation Minister Eric Abetz
in Nusa Dua, Bali, on Thursday.

During the bilateral Indonesia-Australia Ministerial Forum held in
Bali from June 28 to 29, 2006, Australia agreed to provide funds for
the development of Indonesian traditional fishermen in an effort to
prevent them from entering Australian waters illegally.

Minister Numberi said Australia would provide $A10 million ($US7.28
million) for East Nusa Tenggara fishermen.

Last year, Australia provided $A140 million for the handling of
illegal fishing in their border waters.

The minister said Indonesia and Australia had signed a memorandum of
understanding on box areas where Indonesian fishermen were allowed to
catch fish.

"But there is an indication that our traditional fishermen have been
financed by a syndicate to fish shark in Australian waters," the
minister said.

He said Australia had asked Indonesia to recalculate the fish
potentials in the box area, to know whether the fish resources in the
area were still large or not.

Apart from illegal fishing, the two countries also agreed to develop a
fishery industry in Indonesia so that Indonesian fishermen could also
work with the fishery industry.

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

Asian Outbound tourism growth soars

TASHKENT, June 29 (Asia Pulse) - More Asians are heading abroad on
holidays than ever before, with Asian tourists preferring neighbouring
countries as destinations, according to a new survey carried out by
the UN World Tourism Organisation (UNWTO).

"Asia has traditionally been known for its tourism destinations, but
at the same time the number of Asians traveling abroad has soared,"
said UNWTO Regional Representative for Asia Xu Jing.

"Our analysis shows that Asia's outbound growth rates and travel
potential far exceed that of other economic blocs, such as Europe or
the Americas."

The findings are based on market research revealing the travel habits
of seven Asia-Pacific countries which are rapidly becoming the driving
force behind regional tourism.

The research results was presented during UNWTO Regional Commission
meetings in Macau, China.

The new research, conducted in Australia, China, Hong Kong, India,
Japan, the Republic of Korea and Thailand, is contained in a series of
seven publications called "The Asia & Pacific Intra-Regional Outbound
Series" which will be available for purchase from the UNWTO.

The UNWTO's main finding is that 78% of all international tourists in
Asia come from another Asian country.

That is why, according to experts, Asian countries would do well to
pay less attention to attracting tourists from long-haul markets in
Europe and the Americas and to pay more attention to attracting
tourists who live closer to home.

Experts suggest that the national promotional strategies and marketing
activities of these countries are developed in accordance according to
the particularities of that country.

Some of the main findings of the research are provided below:

AUSTRALIA

Australians made an estimated 4.8 million overseas trips in 2005

35% of Australian international travellers chose a destination in Asia

Top five Australian destinations in Asia-Pacific are: New Zealand,
Indonesia, Fiji, Thailand, and Hong Kong

Most travellers go abroad without children and holiday trips average 30 days

CHINA

Chinese made 31 million international trips in 2005

91% of Chinese international travellers chose a destination in Asia

Chinese get much of their travel information on the internet

Group travel is losing popularity and independent travel is gaining

HONG KONG

Hong Kong residents took 74.4 million trips outside of the SAR in 2005

3.5 million trips were made to destinations other than China, Macau or

TAIWAN

The top destinations are: Thailand, Japan, and Singapore

Only 22% of Hong Kong residents travel internationally each year

INDIA

Indians made 6.1 million trips abroad in 2004

Indians like to visit several countries on each trip

Shopping is the favourite activity of Indian tourists

On average, Indian tourists spend more per day than other nationalities

JAPAN

16.5 million Japanese travelled abroad in 2005

More than 60% of Japanese trips to Asia last less than one week

"Gourmet Sampling" is the top activity of Japanese tourists in Asia

Women in their 30s and in their 50s/60s lead the market

REPUBLIC OF KOREA

10 million trips abroad were made by Koreans in 2005

52% of Koreans took at least 4 international trips

Top five Korean destinations in Asia-Pacific are: China, Japan,
Thailand, Philippines and Hong Kong

Nature and local cultures are what attract Korean travellers

THAILAND

2.7 million trips abroad were made by Thais in 2004

85% of tourism spending takes place in the Asia-Pacific region

Most trips are one-week long and to a single destination

The top five destinations for Thai travellers are: Malaysia,
Singapore, China, Hong Kong, and Japan.

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Global tourism sector expands 4.5 percent January-April on Asian recovery

MADRID, June 29 (AFP) -- The number of international tourist arrivals
increased 4.5 percent in the first four months of the year as tourism
rebounded sharply in Asian nations hit by the 2004 tsunami, the World
Tourism Organization reported Thursday.

Citing preliminary figures, it said there were 236 million tourist
arrivals between January and April compared with 226 million in the
same period last year.

"The first few months of 2006 were ... marked by the much-expected
recovery of the the destinations tragically struck by the tsunami,"
the organization said.

Its report noted increases in foreign tourist arrivals of 97 percent
in the Maldives and 25 percent in Sri Lanka. From January to March the
Bangkok airport in Thailand recorded a 29 percent gain in tourist
numbers.

But it added that Indonesia's recovery had been hampered by a May 27
earthquake that occurred in the country's second leading tourist
destination, Yopgyakatara.

By region, Africa and the Middle East both saw increases of 11
percent, followed by Asia-Pacific, 8.0 percent, the Americas, 2.7
percent, and Europe, 2.5 percent.

"International tourism has now entered a more stable phase of
sustained demand without big peaks and troughs," said World Tourism
Organization Secretary General Francesco Frangialli.

"Although the rate of growth is slowing gradually, international
tourism is firmly on track to grow at a rate above the long-term 4.0
percent for the third year in a row now -- barring unexpected events,
of course."

He said three factors could derail the positive trend -- terrorism,
higher prices for aviation fuel and the threat of an avian flu
outbreak.

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Joyo Indonesia News Service
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