[Kabar-indonesia] 18 Biz/Econ Articles: BI; PPA; Permata; BKPM; Rice output; Yamaha;

[Joyo at aol.com]

Bangka

Subject: 18 Reports compiled by Joyoo Indonesia News
Service:

- Indonesia's PPA says 3 investors vying to buy 18 pct of
  Bank Tabungan - report

- Indonesia Bank Lippo sets bond yield guide-source

- Bank Indonesia: '06 New Comml Bk Lending Likely +12%-13%

- Indonesia's Bank Permata denies report that it will lay
  off  staffs

- BKPM expects Indonesia's investment sector to grow 12.5%
  in 2007

- Indonesia needs to improve business climate to lure US
  investors- US chamber

- Indonesia hopes it will again be Japan's main investment
  destination

- Indonesia set to start new railway   in 2007

- Indonesian unit of Yamaha Motor sees market share rising
to 34 pct this year

- Mitsubishi to double investment in Indonesia

- Indonesia needs to import 225,000 tons of sugar in 2007

- Indonesia's unhusked rice output in H1 2007 projected at
  28.42 mln tons

- Indonesia 07 rubber output seen falling

- London Sumatera Indonesia set to produce 1 mln tons of
  CPO a year

- MP Evans in talks on leasing new Indonesian oil palm
  site

- Indonesian palm oil extends gain on demand

- Indonesia will not meet tourism target: Minister

- Indonesia's Bangka island to develop MICE-based tourism

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

Indonesia's PPA says 3 investors vying to buy 18 pct of Bank
Tabungan - report

JAKARTA, November 13 (XFN-ASIA) - Three institutional
investors have submitted bids to buy from the government a
stake of 18 pct in PT Bank Tabungan Pensiunan Nasional,
Bisnis Indonesia reported.

The newspaper quoted state asset management firm PT
Perusahaan Pengelola Aset's (PPA's) president, Mohammad
Syahrial, as saying: 'Originally, 12 investors registered to
purchase the shares. However, by the deadline only three
potential buyers had submitted their bids.'
The deadline was last Tuesday.

Syahrial declined to identify the bidders.

He said PPA planned to shortlist the bidders this week
before requiring them to submit their final bids.

Bahana Securities and PT Deutsche Securities Indonesia are
acting as PPA's financial advisers for the sale.

At present, the government holds 28.39 of Bank Tabungan, PT
Rifan Financindo Advisory 22.61 pct, businessman Fuad Hasan
Masyhur 20 pct, PT Danatama Makmur 19 pct and PT Bakrie
Capital Indonesia 10 pct.

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

Indonesia Bank Lippo sets bond yield guide-source

HONG KONG, November 13 (Reuters) - PT Bank Lippo Tbk ,
Indonesia's 10th-largest bank by assets, has set an
indicative yield of about 7.5 percent for its planned $150
million, 10-year bond, a market source said on Monday.

Investor presentations for the lower tier II subordinated
deal, callable in 2011, are scheduled for Singapore on
Monday, Hong Kong on Tuesday and London on Wednesday.

UBS is handling the bond sale.

Fitch Ratings has assigned an expected B-plus rating to the
proposed issue.

Bank Lippo is controlled by Malaysian state investment
agency Khazanah Nasional Bhd.

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

Bank Indonesia: '06 New Comml Bk Lending Likely +12%-13%

JAKARTA, November 13 (Dow Jones)--Indonesia's domestic
commercial bank sector is likely to record a 12.00%-13.00%
on-year rise in new lending for full-year 2006, the central
bank's director for bank regulation and research, Muliaman
Hadad, said Monday.

On-year growth in new loans would likely accelerate to
17.00%-18.00% next year, Hadad told reporters.

He said those growth projections hinge on the likelihood of
an improving macroeconomic outlook due to lower on-year
inflation and a decline in interest rates.

'If these macroeconomic measures can be maintained...the new
lending of the banking industry could grow by 12.00%-13.00%
by the end of 2006 and will further increase to 17.00%-
18.00% in 2007,' Hadad said.

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

Indonesia's Bank Permata denies report that it will lay off
staffs

JAKARTA, November 13 (Asia Pulse/Antara) - Publicly-listed
Bank Permata (JSX:BNLI.) on Friday denied a report that it
would lay off some of its employees for productivity
reasons.

It was too early for the bank to come to a decision to cut
its personnel in order to improve its performance, the
bank's vice president, Imam Teguh Saptono, told the Jakarta
Stock Exchange (JSX).

The bank was in the middle of reviewing its organizational
structure, employees' productivity, capacity planning and
business performance in the face of global competition, he
said.

"The program is aimed at creating sustainable superior
performance in the face of global competition in the
industrial sector in the future," he said.

The bank has conducted a pilot project of the program in its
40 branches in Jakarta, Bandung, Surabaya and Medan, he
said, adding that the results of the program had improved
the bank's performance by more than 30 per cent in 20 weeks.

"Today the program has been carried out in all Bank
Permata's offices. The study to improve Bank Permata's
productivity is being implemented and that is why it is too
early to make a decision to cut its personnel," he said.

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

BKPM expects Indonesia's investment sector to grow 12.5% in
2007

JAKARTA, November 13 (Asia Pulse/Antara) - The Capital
Investment Coordinating Board (BKPM) said the investment
sector is expected to grow by 12.5 per cent next year from
this year's figure.

A deputy at the board Darmawan Djajusman said, however,
performance of direct investment sector fell short of
expectation.

Realization of domestic investment (PMDN) project so far in
2006 was only Rp13.54 trillion or 38.34 per cent of the
Rp35.32 trillion target and that of foreign investment was
44.57 per cent or Rp43.46 trillion of the Rp97.5 trillion
target, Darmawan said.

In 2007, a significant growth is expected in the investment
sector with progress made in improving the investment
climate and the government offering fiscal incentive, he
said.

He said fiscal incentive is important to make the country
competitive facing other countries in this region including
China.

He said other Asean countries and China also offered
attractive incentives for investors such as Thailand with 3
to 8 years tax holiday and import duty exemption on capital
goods and basic materials.

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

Indonesia needs to improve business climate to lure US
investors- US chamber
JAKARTA, November 13 (XFN-ASIA) - The US Chamber of Commerce
called on the the Indonesian government to improve its
investment, tax and labour laws in order to attract greater
investment from abroad including from US companies.

'Indonesia needs to to pass a new investment law, reform the
tax laws and encourage liberalisation of labour rules. These
reforms are important because business transaction costs in
Indonesia need to be more competitive,' Thomas J. Donohue,
president of the US Chamber of Commerce said at a media
briefing here after meeting with vice president Jusuf Kalla,
ahead of US president George W. Bush visit, scheduled for
next Monday.

He said the Indonesian legal system and judiciary must also
be strengthened, with a sustained and concerted attack on
corruption.

'Investors are looking for legal certainty and equal
treatment. They need to know that the contracts they sign
will hold up under the law and that disputes get settled in
a fair way,' he said.

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

Indonesia hopes it will again be Japan's main investment
destination

OSAKA, November 13 (Asia Pulse/Antara) - The Indonesian
government hopes that Japan will again make Indonesia its
top overseas investment destination following a plan to sign
Economic Partnership Agreements later this month, a senior
diplomat said.

"In the past few years, their priority to invest to
Indonesia has reduced because there are more potential
competitors," Jusuf Anwar, Indonesian ambassador to Japan,
said after a briefing to Japanese businessmen here Thursday.

He said Japanese investors are interested in countries such
as Vietnam, China, Russia and India.

He also said that Japanese businessmen actually wished to
return to Indonesia but instead they turn to other countries
offering attractive incentives.

Therefore, the former minister of finance, said Indonesia
must be serious to improve its investment climate to attract
Japanese investors.

The businessmen are waiting for the law on investment and
want to see tax packages and customs facilities the
Indonesian government would provide to them and to other
businessmen, he said.

Jusuf said that Indonesia should look at the regulations and
facilities provided by Singapore, India and Vietnam for
comparison.

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

Indonesia set to start new railway in 2007

JAKARTA, November 13 (Asia Pulse/Antara) - Transport
Minister Hatta Rajasa said he hopes work will start next
year to build a 37km railway double-double track project
between Manggarai in Jakarta and Cikarang, east of the
capital city.

Hatta said implementation of the project had been delayed
over difficulty in land clearing, but only a small part of
the land to be used for the track is left to be cleared.

Implementation of the project has been delayed since it was
first planned in 2000 because of difficult price
negotiations with landowners.

Earlier, Railway Director General Soemino Eko Saputro said
that 90% of the land had been cleared for the project, to be
financed by the Japan Bank for International Cooperation
(JBIC).

Soemino denied reports that the Japanese government had
refused to disburse funds for the project, saying the entire
process of pre-qualification tenders for the project had
been carried out according to procedures set by JBIC.

He acknowledged that JBIC had set a condition that
construction would start only after land clearing had been
entirely completed.

The entire project is estimated to cost Rp6 trillion
(US$666.6 million)

The project will be built in two phases, with the first
phase between Manggarai and Bekasi covering a distance of
18kms.

JBIC is to provide a loan of 41 billion yen for the first
phase, carrying an annual interest rate of 0.95% a year, to
be repaid in 40 years, including a grace period of 10 years.

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

Indonesian unit of Yamaha Motor sees market share rising to
34 pct this year

JAKARTA, November 13 (XFN-ASIA) - Yamaha Motor Co Ltd unit
PT Yamaha Motor Kencana Indonesia expects its share of the
market for motorcycles here to rise to 34 pct this year from
22 pct last year, with its sales rising 30 pct to 1.45 mln
bikes, Yamaha Motor Kencana Indonesia vice-president
Dionisius Beti said.

He said that in the first 10 months of this year his company
had sold 1.27 mln motorbikes.

Yamaha Motor Kencana Indonesia expects sales growth of about
10 pct next year, he said.

This year, the company opened its second manufacturing
plant, which cost 70 mln usd, raising its production
capacity to 1.9 mln bikes per year from 1.2 mln.

Beti said his company planned to add next year another
production line, costing 15-20 mln usd, increasing its
capacity by about 300,000 bikes per year.

---------------------------------------
Mitsubishi to double investment in Indonesia

JAKARTA, November 13 (Asia Pulse/Antara) - Mitsubishi Corp
(TSE:8058) has announced a plan to double its investment in
Indonesia in the coming years, as part of its aim to become
involved in new projects in the country's energy sector.

Mitsubishi board chairman Mikio Sasaski met President Susilo
Bambang Yudhoyono last weekend, expressing his company's
interest in new oil, gas and electricity projects offered by
the government.

Sasaski discussed progress made in the construction of a
liquefied natural gas (LNG) facility in Tangguh, Papua with
the president.

He said he was confident construction of the project, of
which Mitsubishi is a shareholder, would be completed in
2008.

Mitsubishi also has stakes in a number of oil and gas
projects in the country and now it wants to expand its
operations to the electricity sector, building independent
power plants, said Energy and Mineral Resources Minister
Purnomo Yusgiantoro, who took part in the meeting.

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

Indonesia needs to import 225,000 tons of sugar in 2007

JAKARTA, November 13 (Asia Pulse/Antara) - The government
will need to import 225,000 tons of sugar next year as
production is expected to fall short of target this year.

This year production is forecast to total only 2.31 million
tons as against previously set target of 2.47 million tons,
the association of sugar experts (Ikagi) said.

Production from a number of production centers declined this
year because of long drought, Ikagi official Adig Suwandi
said.

Adig, however, said production from 58 sugar factories in
the country this year is still larger than last year's 2.24
million tons.

The imports will be needed to serve as buffer stock before
milling season begins in May 2007, Adig said.

He predicted production in 2007 will increase to 2.6 million
tons.

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

Indonesia's unhusked rice output in H1 2007 projected at
28.42 mln tons

JAKARTA, November 13 (Asia Pulse/Antara) - The Agriculture
Ministry has projected Indonesia's unhusked rice output in
the first half of 2007 to reach 28.42 million tons,
equivalent to 17.98 million tons of rice.

The rice output would originate from 7.87 million hectares
of paddy field in the 2006/2007 planting season and 4,855
hectares in the 2007 planting season in the country's 13
rice producing provinces, the ministry's director general of
food crops, Sutarto Alimuso said.

"The unhusked rice output of 28.42 million tons will be
achieved if the need for water supply, seeds and fertilizers
is met," he said.

The ministry had set the target of unhusked rice output for
2006 at 56.47 million tons, higher than the Central Bureau
of Statistics (BPS)'s third forecast of 54.66 million tons,
he said.

The target represented a 0.95 per cent rise compared to the
unhusked rice output in 2005, he said.

BPS chief Rusman Heriawan said the forecast was based on
real rice output in the January-August 2006 period plus the
estimate of production in the remaining four months.

He said the third forecast was higher than the second
forecast of 54.75 million tons.

The increase in the unhusked rice output forecast was based
on the 0.13 per cent rise in the size of paddy fields
harvested and the 0.81 per cent increase in productivity of
each hectare of paddy field, he said.

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

Indonesia 07 rubber output seen falling

JAKARTA, November 13 (Reuters) - Indonesia's rubber output
is likely to fall in 2007 due to an expected disruption in
rubber tapping caused by heavy rains early next year, a
senior industry official said on Monday.

"Output is likely to fall to 1.9 to 2.1 million tonnes as
heavy rain in January and February in north Sumatra will
disturb the tapping process," Asril Sutan Amir, vice-
chairman of the Indonesian Rubber Association, told
reporters.

Indonesia, the world's second largest natural rubber
producer and exporter after Thailand, is expected to produce
2.2 million tonnes of rubber this year.

Amir said rubber exports were expected to fall to 1.85
million tonnes in 2007 from this year's estimated 2.15
million tonnes as some of the output would be used to cater
to domestic demand.

Indonesia is aiming to increase the area under rubber
cultivation to 3.31 million hectares this year from 3.28
million last year as farmers and plantations companies grow
more trees to meet increasing demand.

"Next year's demand is still expected to be high, especially
from China because of its strong economic growth. We also
see an domestic consumption increasing to around 12 percent
of total output from only 10 percent this year due to strong
demand from tyre producers," Amir said.

Amir also said world rubber prices were likely to remain
stable at $1.8 a kg until the end of the year.
Tokyo rubber futures fell nearly 2 percent at one point on
Monday as weakness in other commodities dampened sentiment
and prompted players to take profits.

The benchmark Tokyo Commodity Exchange rubber for April
delivery <0#JRU:> closed at 217.9 yen ($1.86) per kg.

Amir said, despite the downtrend, world prices were still
attractive enough for farmers to expand their plantations.

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

London Sumatera Indonesia set to produce 1 mln tons of CPO a
year

JAKARTA, November 13 (Asia Pulse/Antara) - Publicly listed
plantation company London Sumatera Indonesia (Lonsum) said
it is set to produce one million tons of crude palm oil
annually starting from 2010.

This year its CPO production is expected to total 400,000
tons, company Managing Director Bibin Biseno said.

Biseno said the company plans to expand its plantations and
improve the productivity of its plantations located in a
number of provinces.

Currently the company has 80,000 hectares of oil palm
plantations and another 80,000 hectares are in the process
of planting, he said..

Lonsum also has rubber and cacao plantations.

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

MP Evans in talks on leasing new Indonesian oil palm site

LONDON, November 13 (AFX) - MP Evans Group PLC said it has
signed a memorandum of understanding with a proposed
Indonesian partner on the lease of a minimum of 10,000
hectares of land in East Kalimantan close to the 14,000-
hectare plot it already leases.

The land comprises heavily degraded forest and is deemed
suitable for oil palm development in terms of soil
conditions, terrain and climate, the company said.

However, it added that the MoI is subject to agricultural,
environmental and financial due diligence.

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

Indonesian palm oil extends gain on demand

JAKARTA, November 13 (Reuters) - Indonesian palm oil prices
extended gains on Monday, lifted by local refiners demands,
traders said.

At the state marketing centre in Jakarta, which sells palm
oil from state plantations, crude palm oil was up at 4,556
rupiah ($0.499) a kg from 4,536 last Friday.

"There was strong buying in the market that pushed the
prices higher," a Jakarta trader said.
However, there was no auction in North Sumatra's Medan, the
main port for palm oil exports, as players retreated to the
sidelines waiting for fresh leads from the European vegoils
market.

"The market will be active on Tuesday if Malaysia can
maintain its performance and after we receive clear
direction from the European market," a Medan trader said.

The benchmark January contract <KPOF7> on the Bursa Malaysia
Derivatives was up 14 ringgit at 1,689 ringgit ($465) a
tonne at the end of the morning session.

The contract later closed higher at 1,694 ringgit a tonne in
the evening.

In Jakarta, RBD palm olein was traded higher at 5,000 rupiah
a kg compared with 4,930 on Friday.

In the export market, November and December shipments were
offered at $467.5 a tonne, and bids seen at $465.

Sellers were offering January, February and March shipments
at $475 a tonne and buyers bid at $470.

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

Indonesia will not meet tourism target: Minister

JAKARTA, November 13 (Asia Pulse/Antara) - Tourism Minister
Jero Wacik says Indonesia is almost certain to fail in its
attempt to bring 5.5 million foreign tourists to the country
this year.

Wacik said that as of August, the number of visitors totaled
only 2.8 million and that it is almost impossible to draw as
many as 2.7 million in the remaining months despite
promotions already launched by the government.

Last year, around 5.5 million foreign travelers visited the
country spending around Rp5.6 trillion (US$614.53 million).

Wacik, however, said he was optimistic the tourism sector
will soon recover especially in Bali, which is still seen as
the world's best tourist island.

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

Indonesia's Bangka island to develop MICE-based tourism

PANGKALPINANG, November 13 (Asia Pulse/Antara) - The
Pangkalpinang administration on Bangka island is planning to
develop meeting, incentive, convention and exhibition (MICE)
tourism to boost the number of tourist arrivals, an official
said.

The MICE-based tourism package could raise the number of
domestic and foreign tourist arrivals to Bangka island,
Pangkalpinang tourism office head Akhmad Elvias said here
Thursday.

Akhmad expressed his belief that the MICE-based tourism
package would lure more tourists to Bangka, which is
accessible by plane only 50 minutes from Jakarta.
MICE-based activities that will be held in Pangkalpinang are
the Indonesia-Malayasia-Thailand Growth Triangle (IMT GT)
meeting on November 22-25 and Babel Expo on Nov 12.

Akhmad said the number of domestic tourists visiting
Pangkalpinang increased by 20 to 30 percent annually.

The number of foreign travelers visiting Bangka island was
recorded at 300 and domestic holidaymakers 70 in 2005.

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Joyo Indonesia News Service
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