[Kabar-indonesia] 24 Biz/Economy Articles: Cigarette Output; BII; Lippo; Adidas; Prima
Joyo at aol.com
Joyo at aol.com
Wed Nov 15 13:28:54 MST 2006
24 Reports compiled by Joyo Indonesia News:
- Indonesia tobacco tax revenue may fall below target
- Indonesia 06 Cigarette Output 218B Sticks Vs 220B In 05
- Indonesia Selling 5.22% BII Stake From Wed - Official
- Bank Indonesia awards 42 trln rupiah 1-mths SBIs at fixed
rate of 10.25 pct
- Bank Lippo ups bond size, lowers yield - source
- Indonesia's Bank Permata offers US$50 mln of bonds
- Indonesia's WOM Finance signs 66 mln usd syndicated loan
deal
- Indonesia's Wicaksana to convert 54.08 mln usd debt into
shares
- Adidas asked to continue placing orders with Indonesian
shoemakers
- Indonesia's Semen Kupang to raise production to 270,000
tons
- Indonesia's Almi to expand capacity for aluminum sheets
- Indonesia seeks Japan definite answer on EPA
- Banker predicts economic growth for Indonesia in 2007
- UBS analyst upbeat about Indonesian economy
- Indonesia's KS mulls using Korean loan to built pellet
factory
- Indonesia's Arpeni to buy new ships worth US$50 mln
- Toyota unchallenged in Indonesia's October car sales
- Yamaha Indonesia to increase motorcycle output
- Astra Daihatsu to launch new SUV in Indonesia
- Malaysia's AirAsia eyes 60 new A320 aircraft: Fernandes
- Indonesia's CP Prima sets IPO price at 110 rupiah per
share
- Indonesian palm oil rallies on Malaysia, strong demand
- Malaysia's September rubber output down 11.9 pct
- Indonesian poultry society urges govt to exempt corn from
import duty
-----------
Indonesia tobacco tax revenue may fall below target
JAKARTA, November 15 (Reuters) - Indonesia's excise revenue
from tobacco may fall below target this year due to a
slowdown in cigarette sales, a senior finance ministry
official told reporters on Wednesday.
Indonesia's tobacco industry accounts for about 10 percent
of the country's tax revenue.
The country's tobacco industry, which supports about 7
million people, has been hit by a government decision
earlier this year to increase the minimum cigarette retail
price, used to calculate the tobacco excise tax, and high
inflation.
Frans Rupang, the finance ministry's director in charge of
excise revenue, said revenue from cigarette tax is expected
to be 37.4 trillion rupiah ($4.08 billion) this year, below
the 38.5 trillion rupiah target set in the revised state
budget.
"For this year, (total) production of cigarettes may only
reach 218 billion sticks. This is due to the cigarette price
hike in April," he said.
Earlier, the ministry forecast production volume of 220
billion sticks this year, unchanged from last year, but well
below a peak of 239 billion in 2000 before Jakarta stepped
up its moves to hike cigarette tax revenue.
Cigarette makers such as Gudang Garam and Sampoerna are
among the biggest blue chips on the stock exchange.
Tobacco giant Philip Morris International bought Indonesia's
third-biggest cigarette producer, Sampoerna, for around $5
billion last year. ($1 = 9,171 rupiah)
----------------------------------------
Indonesia 06 Cigarette Output 218B Sticks Vs 220B In 05
JAKARTA, November 15 (Dow Jones)--The Indonesian government
expects cigarette output this year to fall by 0.9% to 218
billion sticks from 220 billion a year earlier, a senior
official at the finance ministry said Wednesday.
"The fall is mostly due to higher cigarette retail prices
and weak purchasing power after the government doubled fuel
prices in October last year," Excise Director Frans Rupang
told reporters.
The government in April 2006 raised cigarette retail price
by 10%. [ 15-11-06 0926GMT ]
The government expects revenue from excise tax on cigarettes
next year at around IDR42 trillion, compared with IDR38
trillion expected this year. In 2005, the government
collected around IDR34 trillion in revenue from the excise
tax on cigarette.
"The target to get higher revenue next year could make
retail prices increase, which in turn will weaken demand to
consume cigarettes in 2007," Rupang said, adding that the
cigarette output next year is expected to be less than 218
billion sticks.
He didn't give any other details.
Analysts said that higher excise tax on cigarette could hit
the financial performance of Indonesian cigarette companies
like PT Gudang Garam (GGRM.JK), the nation's largest
cigarette maker by assets, PT Hanjaya Mandala Sampoerna
(HMSP.JK), the nation's third larget cigarette maker and PT
Bentoel Internasional Investama (RMBA.JK).
-----------------------------------------
Indonesia Selling 5.22% BII Stake From Wed - Official
JAKARTA, November 15 (Dow Jones)--Indonesia's government is
selling its 5.22% stake in Bank Internasional Indonesia
(BNII.JK) via market placement, a senior official at the
State-Owned Management Agency, or PPA, said late Wednesday.
Book-building for the sale began at 0900 GMT Wednesday, and
will close Thursday at 0500 GMT, PPA Chief Executive Officer
Mohammad Sjahrial told Dow Jones Newswires. [ 15-11-06
1142GMT ]
Proceeds from the government's sale of its stake in Bank
Internasional Indonesia, or BII, will go towards reducing
the 2006 state budget deficit, estimated at IDR2.5 trillion
prior to the sale, Sjahrial said.
Analysts have predicted that the sale will net the
Indonesian government around IDR500 billion.
"Today, BII share prices closed at IDR205 per share. I hope
the price offers will be higher than that," Sjahrial said,
but did not give a clearer indication of a possible price
range.
Deutsche Bank AG (DBK.XE) and unlisted local firm PT Bahana
Securities will act as advisors to the stake sale, Sjahrial
said.
Trading of BII shares on the Jakarta Stock Exchange will be
suspended until 0500 GMT Thursday - noon local time - while
the sale takes place, Sjahrial said.
The government will also divest one lot of shares of PT Bank
Lippo (LPBN.JK), in which it holds a 2.44% stake, during the
sale of its BII stake, Sjahrial said, without giving further
details.
-----------------------------------------
Bank Indonesia awards 42 trln rupiah 1-mths SBIs at fixed
rate of 10.25 pct
JAKARTA, November 15 (XFN-ASIA) - Bank Indonesia said it has
awarded 42 trln rupiah worth of one month Bank Indonesia
Certificates (SBI) at a fixed interest rate of 10.25 pct at
its weekly auction.
BI said the auction absorbed 63.79 pct of the bids made.
----------------------------------------
Bank Lippo ups bond size, lowers yield -source
HONG KONG, November 15 (Reuters) - PT Bank Lippo Tbk ,
Indonesia's 10th-largest bank by assets, is expected to
price an expanded 10-year bond on Wednesday at a yield lower
than initially indicated, a market source said.
Bank Lippo has raised the size of the lower tier II
subordinated issue to $200 million from $150 million and
tightened the yield guidance to 7.375 percent from an
initial 7.50 percent, the source said.
UBS is handling the bond sale.
Fitch Ratings has assigned an expected B-plus rating to the
proposed issue, callable in 2011.
Bank Lippo is controlled by Malaysian state investment
agency Khazanah Nasional Bhd.
---------------------------------------
Indonesia's Bank Permata offers US$50 mln of bonds
JAKARTA, November 15 (Asia Pulse/Antara) - Publicly-listed
Bank Permata (JSX:BNLI) held a public offering for
subordinate bond I worth Rp500 billion (US$50 million), a
spokesperson said.
The bond issuance was aimed at finding long-term financial
sources and strengthening capital structure, the bank's
director, Stewart D. Hall, said here Tuesday.
PT Standard Charter Securities has been appointed as the
issuer of the 10 year-time bond which receives A rating from
Indonesian rating company PT Pefindo.
The bond carries interest rate based on interest rate of the
state bond of FR22 plus 150 to 225 base points.
"Book building will be carried out from November 14 to 21
and offering process from December 7 to 11," Stewart said.
The bond will be listed at the Surabaya Stock Exchange (SSX)
on Dec 15.
Investors will be given additional interest of 10 percent if
until the next five years they still hold the bond and do
not sell it back to the bank.
Bank Permata which is 89 percent owned by the Standard
Chatered Bank-PT Astra International consortium posted a net
profit of Rp223.4 billion late September 2006, up by 21.6
percent from the corresponding period last year.
Bank Permata's total assets stood at Rp36.4 trillion while
outstanding credits reached Rp22.1 trillion.
Its capital adequacy ratio (CAR) was recorded at 11.7
percent.
---------------------------------------
Indonesia's WOM Finance signs 66 mln usd syndicated loan
deal
JAKARTA, November 15 (XFN-ASIA) - PT Wahana Ottomitra
Multiartha (WOM Finance), a motorcycle financing firm, said
it has signed a 66 mln usd 3-year loan with a syndicate of
foreign and local lenders.
The syndicate members are Bayerische Hypo-und Vereinsbank
AG's Singapore branch, PT Bank Panin, United Overseas Bank
of Singapore, Bank of China, State Bank of India and MayBank
and Indocorp.
Bayerische Hypo-und Vereinsbank will be the lead arranger.
WOM president Benny Wennas said the funds will help support
the company's target of 4 trln rupiah in new financing this
year and reflects the lenders' confidence in the outlook for
motorcycle sales in Indonesia.
The company sees motorcycle sales up 10 pct next year and it
is targeting new financing of 4.5 trln rupiah.
---------------------------------------
Indonesia's Wicaksana to convert 54.08 mln usd debt into
shares
JAKARTA, November 15 (XFN-ASIA) - Trading firm PT Wicaksana
Overseas International said it plans to issue 991.09 mln new
shares, equivalent to 54.08 mln usd, to its creditors as
part of a debt restructuring scheme.
The company said in a statement that it also proposes to
convert 2.91 mln usd debt into shares in its unit PT Wira
Logitama Saksama and to settle the remaining 7.58 mln usd
debt through cash instalments.
After the debts are converted into shares, creditors will
control 78.1 pct of Wicaksana Overseas and will own 99.85
pct of Wira Logitama.
Wicaksana will hold an extraordinary shareholders meeting on
Dec 14 to approve the proposal.
---------------------------------------
Adidas asked to continue placing orders with Indonesian
shoemakers
JAKARTA, November 15 (Asia Pulse/Antara) - The government
has asked the 'Adidas' trademark holder to continue placing
orders with shoe makers in Indonesia, Industry Minister
Fahmi Idris said.
In particular, the company has been requested to purchase
them from three shoe makers located in Tangerang (Banten)
and Bekasi (West Java) which are on the brink of closure as
they face difficulties to pay suppliers of raw materials.
"We are asking Adidas to continue placing its orders, and
even increase them," Fahmi said after inaugurating a factory
of PT Sumber Piranti in Karawang, West Java, on Tuesday.
The minister said that Adidas had met the Trade Ministry's
secretary general, Agus Tjahajana, on November 7, assuring
him that it would resume placing its orders with the shoe
makers in Indonesia.
He said that orders from Adidas were vitally important to
rescue the three factories now facing a total halt in their
operations.
The three factories employed a large number of workers so
that unemployment would increase if they stopped their
operations.
The three factories were PT Dong Joe, PT Spotec and PT Tong
Yang, which employed a total of 18,000 workers.
"The operations of the three factories would depend on
orders from Adidas. If they received orders, they could
return to work," the minister said.
He said the three factories also had outstanding loans
believed to reach US$30 million to the BRI Bank and Mandiri
Bank.
The minister believed that the financial difficulties facing
the three factories were due to the discontinuation of
orders from the trademark holder, so that the raw material
supplies also ceased.
"Therefore, one of the solutions to the problem include a
resumption of orders from Adidas," the minister said.
Previously, Multifarious Industries Director of the Ministry
of Industry, Nugraha Sukmawidjaja, said that three banks in
Indonesia had expressed readiness to form a syndication of
BRI Bank, BCA Bank and Bank Ekonomi. But the three banks
wanted the factories be audited first.
He said PT Dong Joe has an average monthly production
capacity of 600,000 pairs, and PT Spotec 200,000 to 300,000
pairs.
----------------------------------------
Indonesia's Semen Kupang to raise production to 270,000 tons
KUPANG, EAST NUSA TENGGARA, November 15 (Asia Pulse/Antara)
- State-owned cement maker PT Semen Kupang in the eastern
Indonesian province of East Nusa Tenggara is planning to
increase its annual production to 270,000 tons starting 2007
from the current 100,000 tons.
"We are optimistic that the target is achievable as we have
received Rp50 billion in fund from the revised 2006 State
Budget. The fund will be used as working capital to increase
production and expand market," PT Semen Kupang President
Director Abdul Madjid Nampira said here on Wednesday.
Nampira explained that the allocation of the new fund from
the revised 2006 budget increased the government's state
capital participation in the cement factory's shares.
The fund, which came from 13 state-owned companies, was
intended to help revive the factory, he added.
He said that the fund would be disbursed in December 2006.
In the first phase, the cement production would be increased
to 210,000 tons annually.
"The next phase, the production would be up to 270,000 tons
per year," he said.
----------------------------------------
Indonesia's Almi to expand capacity for aluminum sheets
JAKARTA, November 15 (Asia Pulse/Antara) - Publicly traded
aluminum sheet producer PT Aluminium Light Metal Industri
said it plans to expand its annual production capacity from
84,000 tons at present to 150,000 tons boosted by growing
demand especially in export market.
The company said it its exports in the first nine months of
this year totaled 28,947 tons valued at Rp815.5 billion
(US$89.4 million), up from 23,924 tons valued at Rp582.6
billion in the same period last year.
Altogether the company reported sales totaling 48,219 tons
valued at Rp1.4 trillion (US$155 million) in the first nine
months of this year.
Sales on the domestic market totaled 19,272 tons valued at
Rp631.6 billion, its executive managing director Alim
Satruia said.
The increase in exports was attributed to growing demand
from the United States. The company has also exported its
product to other countries including Taiwan, South Korea and
Australia and Malaysia.
----------------------------------------
Indonesia seeks Japan definite answer on EPA
November 15 (Xinhua) -- Indonesian President Susilo Bambang
Yudhoyono said Wednesday he would meet Japanese Prime
Minister Shinzo Abe to get a final answer about the Economic
Partnership Agreement (EPA) during his trip to Japan later
this month.
"I will ask the definite answer about EPA from the Japanese
prime minister during my visit," Susilo was quoted by the
national Antara news agency as saying.
Susilo is slated to leave for Japan on Nov. 26 at the
invitation of Japanese Emperor Akihito.
Under the leadership of Junichiro Koizumi, Japan agreed to
establish EPA with Indonesia and boost bilateral cooperation
in energy, trade and investment, Susilo said during his
visit to the Juanda Airport in Surabaya.
Trade Minister Mari Elka Pangestu said earlier the two
countries have not reached final agreement on the EPA draft
and several articles remained contentious.
Presidential spokesman Dino Pati Djalal said the president
had called for the speeding up of the ongoing EPA so that it
could be signed this year.
EPA was very important to intensify bilateral economic
relations between the two countries, Dino said.
---------------------------------------
Banker predicts economic growth for Indonesia in 2007
JAKARTA, November 15 (Asia Pulse/Antara) - A banker has
predicted that Indonesia's economy would continue to grow in
2007 following the lowering six times of Bank Indonesia's
reference rate by 250 base points and the active expansion
of banking credits to customers.
"The sign for improvement in Indonesia's economy has been
seen since the second quarter of this year with the falling
of Bank Indonesia's interest rate and that of the banking
credits," Gunawan Geniusahardja, a commissioner of PT
PermataBank, said here on Tuesday after presenting a public
expose on subbordinate bonds of PermataBank.
He said that the improving economy should be supported by
directing state expenditure on the production sector so that
the real sector, which so far had been viewed to be
stagnant, would develop well.
Besides, the government should also develop good investment
climate to attract foreign investors into the domestic
market, guaranteed security and improve legal certainty.
Gunawan said that the government should be active in seeking
foreign investors from Europe and Asia, including China.
If the European or Asian investors entered the domestic
market the economic growth set by the government at 6.3
percent would be achieved or even surpassed, he said.
He said that even though banks still held themselves from
lowering the interest rates of their credits, it did not
mean that they did not respond Bank Indonesia's step to
lower its rate.
"Banks still wait the appropriate time for lowering the
interest rate of their credits," he said.
----------------------------------------
UBS analyst upbeat about Indonesian economy
JAKARTA, November 15 (Asia Pulse/Antara) - Indonesia will be
able to meet its economic growth target of 6.3 per cent next
year despite an expected slowdown in world trade, an analyst
said.
UBS Investment Bank Global Economics Managing Director Paul
Donovan said here Tuesday that Indonesia as one of the
world's major commodity exporters, would benefit from the
expected increase in international demand for commodities,
which would continue to increase despite the projected
decline in overall trade.
The slowdown of U.S. consumer spending will have limited
adverse impact in Indonesia, Donovan said.
He said global trade and services would likely decline next
year, partly as a result of slower growth in orders from the
United States, which is facing an economic slowdown.
Indonesian economic growth reached 5.2 per cent in the
second quarter of this year.
The government has forecast 5.6 per cent growth for the
economy this year and 6.3 per cent next year.
Donovan said an expected further surge in demand from China
would be able to offset weaker demand in the United States.
----------------------------------------
Indonesia's KS mulls using Korean loan to built pellet
factory
JAKARTA, November 15 (Asia Pulse/Antara) - The country's
largest steel maker PT Krakatau Steel (KS) said it is
studying the possibility of using a loan from South Korea to
build the country's first pellet factory in South
Kalimantan.
The plan came after the state company failed in finding
partners through tender to develop iron ore reserves in that
province.
"We have found a new prospective investor from South Korea
to build steel plant in South Kalimantan," KS President
Daenulhay told Antara news agency.
The Korean investor agreed to put up US$450 million of
US$500 million needed for the project, Daenulhay said,
refusing the divulge the name of the investor.
A number of investors have indicated interest in building
the factory designed to have an annual capacity of 1 million
tons of steel pellet but none of them met the required
qualifications.
The pellet plant is to be operational in 2008 to feed KS's
steel factory in Cilegon, Banten.
-----------------------------------------
Indonesia's Arpeni to buy new ships worth US$50 mln
JAKARTA, November 15 (Asia Pulse/Antara) - PT Arpeni Pratama
Ocean Line (JSX:APOL) said it plans to buy new ships next
year to meet growing demand for sea transport in the
country.
The company will spend most of its capital expenditure of
US$50 million set for 2007 to buy new ships, company
President Oentoro Surya said.
Oentoro said demand for domestic shipping rose sharply as a
result of the government regulation banning foreign ships
from carrying domestic cargoes.
If necessary the ship purchase budget will be increased to
US$75 million, he told the newspaper Investor Daily on
Monday.
This year, the company spent US$100 million to buy 12 new
vessels increasing its fleet to the current level of 56
units.
Oentoro predicted the company will chalk up a 20 per cent
increase in income this year.
In the first nine months of this year the company posted
Rp989 billion(US$109.7 million) in income or an increase of
24 per cent from the same period last year but its net
profit fell to Rp126.11 billion from Rp138.46 billion.
----------------------------------------
Toyota unchallenged in Indonesia's October car sales
JAKARTA, November 15 (Asia Pulse/Antara) - The sharp fall of
39.3 per cent in car sales to 20,694 units in October from
the previous month was also marked with the changes in the
ranks among the 10 market leaders in the country.
Toyota remained unchallenged at the top with sales totaling
8,210 units with a market share of 38.7 per cent though
declining from 13,385 units in the previous month.
Mitsubishi, which was second in September fell to the fourth
losing ground to Suzuki and Daihatsu with sales shrinking to
2,591 units in October from 5,794 units in September.
Mitsubishi has always competed closely with Suzuki but it
has never dropped in the ranks as far down to the fourth.
Suzuki also reported a decline in sales but not as steeply
as Mitsubishi did. Suzuki sales totaled 3,425 units in
October down from 5,303 units in September.
Meanwhile Daihatsu climbed for the first time to the third
with sales 2,650 units in October also down compared with
September's 3,283 units.
-----------------------------------------
Yamaha Indonesia to increase motorcycle output
JAKARTA, November 15 (Asia Pulse/Antara) - PT Yamaha
Indonesia Motor Manufacturing has announced a plan to expand
its production capacity of Japanese Yamaha motorcycles by
300,000 units a year.
The company plans to build a new production line with an
investment of US$20 million next year, its vice president
Dionnius Beti said.
The company already has two factories with a total annual
capacity of 1.45 million units.
Beti said the capacity is to be expanded in mid 2007,
prompted by growing demand for Yamaha motorcycles amid a
market slump.
Yamaha is the only brand reporting an increase in sales so
far in 2006, with total sales of motorcycles in the country
estimated to fall by 18 per cent.
Yamaha's market share rose to 34 per cent in the first nine
months of this year up from 24 per cent in 2005.
-----------------------------------------
Astra Daihatsu to launch new SUV in Indonesia
JAKARTA, November 15 (Asia Pulse/Antara) - PT Astra Daihatsu
Motor (ADM) says it plans to launch a new type of Daihatsu
Sport Utility Vehicle called Terios in mid December.
Terios will replace Daihatsu Taruna to compete in the market
of 1,500 cc SUV products in the country, ADM general manager
Amelia Tjandra said yesterday.
Terios will enter the market with more or less the same
price set for Taruna at Rp125 million (US$13,703) to Rp150
million (US$16,444), Tjandra said.
She said Terios with a 7-seat capacity, a type higher in
demand in the country, is expected to attract more consumers
than Taruna as it offers greater convenience.
------------------------------------------
Malaysia's AirAsia eyes 60 new A320 aircraft: Fernandes
KUALA LUMPUR, November 15 (AFP) -- Asia's largest budget
carrier AirAsia on Wednesday said it may order another 60
A320 Airbus aircraft bringing the total to 160 planes to
meet a surge in passenger traffic.
"This is my gut feeling. We may firm an order next year for
30 A320 with an option for another 30 planes," the airline's
group chief executive Tony Fernandes told AFP.
Fernandes said the AirAsia board has not yet discussed the
new order but added AirAsia was extremely happy with the
performance of the A320 aircraft.
"It has far exceeded our expectation," he added.
The airline has taken delivery of 13 A320s to date.
Fernandes also said AirAsia would ask Airbus to accelerate
delivery of planes to 24 a year from 17 presently, to meet
growth and route expansion.
Fernandes last week said he expected AirAsia to carry 16
million passengers in the financial year ending next June,
up from 9.31 million a year ago.
AirAsia was launched as a budget carrier in December 2001
with two aircraft.
It now offers more than 100 domestic and international
flights to Malaysia, Thailand, Indonesia, Singapore,
Cambodia, Vietnam and the Philippines.
----------------------------------------
Indonesia's CP Prima sets IPO price at 110 rupiah per share
JAKARTA, November 15 (XFN-ASIA) - Shrimp supplier PT Central
Proteinaprima (CP Prima) has set a price of 110 rupiah a
share for its initial public offering (IPO) of 3 bln shares
or 16.38 pct of the firm's enlarged capital, the published
prospectus says.
The company said each four new shares would come with seven
warrants.
CP Prima said 15 pct of the proceeds of the IPO would be
spent on building and renovating shrimp ponds, 18 pct on
developing a shrimp processing plant, 6 pct on developing a
shrimp feed plant, 22 pct on constructing a fish feed plant,
23 pct on developing infrastructure and 16 pct on
maintenance.
The offering will begin on Monday and end next Wednesday,
and the shares will be listed here on Nov 28.
CP Prima was once listed here before. It was delisted in
December 2004 after it restructured its debts.
---------------------------------------
Indonesian palm oil rallies on Malaysia, strong demand
JAKARTA, November 15 (Reuters) - Indonesian palm oil prices
moved higher on Wednesday responding to sharp gains in the
neighbouring Malaysian market and strong local demand amid
fears of tight supply due to unfavourable weather.
At the state marketing centre in Jakarta, which sells palm
oil from state plantations, crude palm oil jumped to 4,653
rupiah ($0.507) a kg from 4,563 on Tuesday.
In North Sumatra's Medan, the main port for palm oil
exports, crude palm oil was also traded higher at between
4,588 and 4,637 rupiah per kg compared with 4,585 on
Tuesday.
"Malaysia is gaining much and demand is high. The
combination of the two has boosted prices," a trader in
Medan said. "Buyers were pouring into the market on
expectations of lower output.
Traders have said above normal rains in some oil palm-
growing region in north Sumatra and dry weather in
Kalimantan might cut output in the last two months of the
year.
By the midday break, the benchmark January contract <KPOF7>
on the Bursa Malaysia Derivatives exchange was up 25 ringgit
at 1,714 ringgit ($470) a tonne.
The contract later closed higher at 1,741 ringgit a tonne in
the evening.
Malaysian gains also supported the cooking oil market in
Jakarta, with RBD palm olein traded higher at between 5,025
and 5,075 rupiah a kg compared with 4,950-5,000 on Tuesday.
In the export market, December shipment was offered at
$477.5 a tonne, and bids seen at $475.
January, February and March shipments were offered at $485
per tonne, while buyers bid at $477.5.
---------------------------------------
Malaysia's September rubber output down 11.9 pct
KUALA LUMPUR, November 15 (Reuters) - Output of natural
rubber in Malaysia, one of the world's leading producers,
fell 11.9 percent to 113,209 tonnes in September from a
month earlier, the state-run Malaysian Rubber Board said on
Wednesday.
It said the exports of mainly Standard Malaysian Rubber
during the month rose marginally by 0.2 percent to 98,125
tonnes.
The country's rubber sales during January to September
period fell 1.9 percent, the board said in a statement
without giving the numbers.
China was the biggest importer of Malaysian rubber taking
313,054 tonnes during nine months to September, followed by
Germany which bought 105,883 tonnes and South Korea took
51,262 tonnes.
The country's rubber imports declined 18.3 percent to 39,724
tonnes in September from August, the board said.
Malaysia buys natural rubber mainly in the form of latex
concentrates from Thailand, Indonesia, the Philippines,
India and Vietnam for its glove-making industry, the world's
largest.
Rubber stocks at the end of September rose marginally by 0.9
percent to 200,274 tonnes from a month earlier.
---------------------------------------
Indonesian poultry society urges govt to exempt corn from
import duty
JAKARTA, November 15 (Asia Pulse/Antara) - The Indonesian
Poultry Society Forum (FMPI) has urged the government to
exempt corn from import duty to minimize the adverse impact
of the corn price hike on the domestic feed and poultry
industries.
FMPI Chairman Don Utoyo pointed out here early this week
that the corn price in the world market has kept rising,
being quoted at US$210/metric ton at the end of last month
or equivalent to Rp1,930/kg, well above the local corn price
of Rp1,500/kg from the farmers.
The import duty exemption on imported corn will not be
harmful to local corn growers, as the price of the commodity
on the international market is much higher than the price of
local corn on the domestic market, he said.
Instead of harming local growers, the exemption of foreign
corn from import duties will be helpful to the corn
consuming industries, especially the poultry industry, the
FMPI chairman said.
The Indonesian government still imposes a 5 percent import
duty on corn to protect local corn growers from the
domination of imported corn.
The price of imported as well as locally grown corn has
increased by about 40 to 50 percent since the beginning of
2006 due to unfavorable climate and the policy of the United
States as the world's biggest corn producer to allocate some
51 percent of its corn supply for its ethanol industry,
according to Utoyo.
In the meantime, the price of other basic materials for
poultry feed like soybean, has also gone up, and increase in
the price of feed basic materials has raised poultry
production cost as about 70 percent of the production cost
is for feed procurement, he added.
With the feed price hike, the price of chicken in Indonesia
has continued to go up, whereas domestic chicken consumption
has been declining after the Idul Fitr/Lebaran post-fasting
festivities.
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Joyo Indonesia News Service
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