[Kabar-indonesia] 24 RI Biz/Econ Reports: Tourist Arrivals Fall; SOE Write Offs; S'pore Tax; Rice

[JoyoNews at aol.com]

24 Reports:

- Indonesia's August foreign tourist
  arrivals fall
- Indonesia worried as Singapore plans
  abolition of corporate tax
- Indonesian president signs revised 
  rule on write-off of debt owed to 
  state firms
- Indonesia signs US$62.58 mln
  Vietnamese rice import deal
- Indonesian manpower minister to
  open Workers Bank
- Telkom blocks unregistered users 
- Qatar Islamic Bank to acquire banks
  in Indonesia
- Indonesian govt utilizes only 53.65 pct 
  of World Bank loans
- Gap, Banana Republic stores to open 
  in Indonesia
- Mandala To Buy 4 Airbus A320s
  This Year
- Cilegon prepares alternative 
  for Jakarta-Merak highway 
- General Electric to revitalize 200
  locomotives in Indonesia
- Indonesian car sales set to peak in
  September
- FDI in Indonesian motorcycle industry to
  reach US$150 mln in '06
- Indonesia's Matahari sets coupon of 9.5 pct
  for 150 mln-usd senior notes issue
- Indonesia's Adhi Karya to develop transport
  projects in Saudi Arabia - report
- Stock alert - Indonesia's Adhi Karya higher
  on Saudi Arabia projects news
- Indonesia's Davomas owners terminate talks
  with Citadel for stake sale
- Ireland's Waterford Wedgwood To Invest
  $125M In Indonesia
- Broker call - Indonesia's Asahimas Flat
  Glass maintained a 'buy' - Danareksa
- Indonesia's Humpuss H1 net profit
  93.03 bln rupiah vs 76.58 bln
- Indonesia Bahtera Adimina books
  US$5.3 mln loss in H1
- Indonesia's Astra Agro 8 mths CPO sales
  617,712 tons; up 18.1 pct
- Indonesian crude palm oil slightly up
  on demand

Indonesia's August foreign tourist arrivals fall

JAKARTA, October 2 (Reuters) - The number of foreign tourists visiting
Indonesia in August fell 15 percent from a year ago, the statistics
bureau said on Monday, as concerns like bird flu continue to keep
visitors away.

Arrivals dropped to 343,400 in August, taking the total number of
foreign tourist arrivals in the first eight months of this year to 2.6
million, down 9 percent from the same period last year.

Tourism in the sprawling archipelago of some 17,000 islands, has been
shaken by a string of disasters ranging from bomb attacks, tsunamis
and earthquakes to bird flu cases.

Indonesian tourism officials are trying to reverse the trend by
promoting other parts of the country that have been spared from
natural disasters.

Tourist arrivals in Bali, the country's most popular tourist
destination, fell in August by nearly 25 percent from a year earlier
to 124,979.

The predominantly Hindu island in mostly Muslim Indonesia is still
struggling to recover after suicide bombers blew themselves up at
three restaurants in October last year, killing 20 people.

These attacks occurred three years after Islamic militants bombed two
Bali nightclubs, killing 202 people, mostly foreign holiday makers.

Tourism accounts for around 5 percent of Indonesia's economic activity
and it brought in about $4.4 billion to Indonesia in 2005.

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Indonesia worried as Singapore plans abolition of corporate tax

JAKARTA, October 2 (Asia Pulse/Antara) - Taxation director general
Darmin Nsaution has expressed concern that a plan by Singapore to
abolish corporate dividend tax could trigger capital flights from
Indonesia to the neighboring country.

Singapore no longer needs money, Nasution said of the plan last
weekend, adding that the prospect worried him greatly.

Like Indonesia, Singapore is revising its taxation law to adjust to
the economic development. The revision calls for the abolition of tax
on dividends.

Reports in Singapore said the finance minister of Singapore had
approved 28 of 49 points for amendment proposed by the Singaporean
public.

Nasution said being in the same region, policy change in Singapore
will have implications on Indonesia.

He said Singapore has the most potential to attract capital from
Indonesia as the country is far more competitive than Indonesia.

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Indonesian president signs revised rule on write-off of debt owed to state 
firms

JAKARTA, October 2 (XFN-ASIA) - President Susilo Bambang Yudhoyono has
signed the amended regulation governing write-off of debt owed to
state companies, finance ministry spokesman Marwanto Harjowiryono
said.

'The president has signed the amended regulation but I cannot confirm
now if it should be implemented at the date it was signed,
retroactively or in a future date,' he told XFN-Asia.

'We will issue a statement about it after consulting with legal
bureau,' he added.

The so-called 'PP 14/2005' regulation stipulates that a haircut of
debts owed to a state company or a firm owed by regional government,
must be approved by the Ministry of Finance.

With the amendment, Finance Minister Sri Mulyani Indrawati said the
write-off of debts owed to state companies or to firms owned by
regional governments will no longer require approval by the minister
of finance.

This would allow state banks to restructure their non-performing loans
faster as they can now offer a reduction without seeking the finance
minister's approval.

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Indonesia signs US$62.58 mln Vietnamese rice import deal

JAKARTA, October 2 (Asia Pulse/Antara) - The State Board of Logistics
(Bulog) has signed a contract for the import of 210,000 tons of rice
from three Vietnamese companies valued at US$62.58 million.

Bulog signed the contract last weekend with Vinna Food II (Vietnam
Southern Food Corp.), Kien Giang Trading Company and Tien Giang Food
Company to handle the rice imports into the country.

The three Vietnamese companies were awarded the contract after winning
a tender and under the contract they will deliver the rice between
October 1 and November 15, chairman of the tender Agusdin Fariedh
said.

The planned imports have triggered controversy with strong protests
from the farmers' association and a number of factions in the House of
Representatives.

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Indonesian manpower minister to open Workers Bank

TANGERANG, October 2 (Asia Pulse/Antara) - Manpower and Transmigration
Minister Eman Suparno said here Friday he was scheduled soon to
inaugurate an Indonesian Workers (TKI) Bank which would handle the
financial affairs of Indonesian workers.

After the bank had been established, Indonesian workers would no
longer face difficulty when they wished to fly abroad or to return to
Indonesia for holidaying or leave, he said.

"We have done the necessary coordination with Bank Indonesia (central
bank) and the TKI bank will be a reality in the near future," Erman
told Antara here Friday.

The minister said he had also discussed the matter with the House of
Representatives' Commission IX and other relevant government agencies.

Erman made the statements on the sidelines of a working visit to
Terminal III of Soekarno-Hatta airport in Cengkareng together with
some members of the House's Commission IX to have a close look at work
to open a new terminal.

In fact, Bank Indonesia has given a signal on the opening of TKI bank
and will help it, so that the workers often regarded as "heros of
foreign exchange" will have no problem on their finance.

"TKI bank which will take the form of a People's Credit Bank (BPR)
will have branches in the regions, especially in regions where most
workers are recruited throughout Indonesia such as Pandeglang, Lebak
(Baten), Mataram, Cianjur, Sukabumi, Indramayu, Cirebon, Kuningan,
Kediri and Lamongan.

The manpower and transmigration ministrial office has also made a
better coordination with the association of BPR banks throughout the
country to accelarate the opening of TKI bank.

Suparno also denied a report saying that the opening of TKI bank was
only a discourse and would never turn out to be a reality just because
of abundance of contraints standing ahead.

"If I raise it to the public in talks, it will turn out to be a
reality. This is only a matter of time and all parties have agreed to
its opening. So it is wrong to say that the opening of TKI bank is
only a discourse," he said.

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

The Jakarta Post
October 2, 2006

Telkom blocks unregistered users 

JAKARTA: State-owned telco firm PT Telkom has blocked the numbers of 
171,391 pre-paid TelkomFlexi subscribers, or 5 percent of its total 2,794,364 
customers, for failing to register on time.

Another 43,038 numbers have since Wednesday been put on a "soft block", 
Telkom spokesperson Muhammad Awaludin said in a statement released 
Sunday. 

These numbers would be unblocked after customers registered through the 
company's message or call centers. 

The government is requiring all pre-paid cellular phone subscribers to 
register their numbers for security reasons. 

Telkom has provided an automatic registration system for its new TelkomFlexi 
numbers. -- JP 

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

Qatar Islamic Bank to acquire banks in Indonesia

JAKARTA, October 2 (Asia Pulse/Antara) - Qatar Islamic Bank has set
aside US$100 million for the acquisition of banks in Indonesia, State
Minister for State Enterprises Sugiharto said.

Sugiharto said originally Qatar Islamic Bank planned to open new bank
in the country but Bank Indonesia recommended acquisition as the
central bank wants to reduce the number of banks in the country.

He said his office has offered PT Bank Syariah Mandiri, the sharia
unit of state Bank Mandiri, to the Qatari bank

A number of foreign banks have acquired or plan to acquired small
banks that failed to increase capital to meet the minimum limit set by
the central bank.

Industrial & Commercial Bank of China (ICBC) is negotiating to acquire
Bank Halim after Rabobank of the Netherlands acquired Bank Haga and
Hagakita Bank.

Acom Co. Ltd and The Bank of Tokyo Mitsubishi UFJ are also reported
planning to acquire Bank Nusantara Parahyangan.

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

Indonesian govt utilizes only 53.65 pct of World Bank loans

JAKARTA, October 2 (Asia Pulse/Antara) - The government used only
US$245.87 million or 53.65 per cent of its loan commitments with the
World Bank in 2005 a significant drop from 80.64 per cent in 2004.

The low utilization of the loan was caused by a change in the
budgeting system, according to data at the National Development
Planning Board.

The World Bank was involved in financing 27 government projects in 2007.

Meanwhile, commitment fees to be paid by Indonesia for un-used loans
from the Asia Development Bank (ADB) totaled US$89.5 million to
December 2005, up from US$81.89 million a year earlier.

The high commitment fee indicated low performance in the
implementation of projects financed with loans, an economist from
state University of Gajah Mada Sri Adiningsih said .

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

Gap, Banana Republic stores to open in Indonesia

LOS ANGELES, Oct. 2 (Reuters) - Gap Inc. said on Monday that it had 
expanded an existing franchise agreement with F.J. Benjamin Holdings 
Ltd. to bring Gap and Banana Republic-branded stores to Indonesia. 

F.J. Benjamin, which already holds the rights to operate those stores 
in Malaysia and Singapore, plans to open about 20 retail locations by 
2010 through an Indonesian affiliate, Gap said in a statement. -end-

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

Mandala To Buy 4 Airbus A320s This Year

JAKARTA, October 2 (Dow Jones)--Indonesia's PT Mandala Airlines will
buy four Airbus (ABI.YY) A320 airplanes this year following the
acquisition of a 49% stake in the company by Arizona-based Indigo
Partners, Bisnis Indonesia reported Monday.

It quoted Mandala's spokesman Alex Widjojo as saying that the company
will serve new domestic routes, but didn't elaborate.

Mandala flies to 18 cities across Indonesia, operating 12 Boeing
737-200 and two Boeing 737-400 airplanes, the newspaper reported.

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

Cilegon prepares alternative for Jakarta-Merak highway 

CILEGON, Banten, Oct. 2 (Antara): The Cilegon mayoralty has prepared an 
alternative to the main Jakarta-Merak highway if the traffic is too heavy during 
the upcoming Idul Fitri travel season, an official said Monday.

"We are preparing Cilegon's northern ring road from Merak Harbor-Bojonegara 
area for traffic heading to Jakarta from Merak," Cilegon Transportation Agency 
head Marfi Fahzan said. 

"Taking the ring road takes longer because it circles Cilegon northern 
coastal area before ending at West Cilegon toll entrance," he said.

The Jakarta-Merak highway is an important highway for vehicles heading to 
Sumatra Island.

The Idul Fitri travel season will peak about one week before and after the 
Idul Fitri holiday. The holiday falls on Oct. 24 and 25, after the Islamic 
fasting month of Ramadhan.

Marfi said the ring road was in a good condition as it is made of concrete 
with asphalt overlay in several sections.

"The agency is also preparing alternative inner city routes in case of 
traffic congestion during the travel season," he said. 

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

General Electric to revitalize 200 locomotives in Indonesia

JAKARTA, October 2 (Asia Pulse/Antara) - General Electric (GE) has
agreed to invest US$400 million to revitalize 200 old locomotives
owned by state railway company PT Kereta Api (KA) over a period of 10
years.

The project will be carried out in cooperation with state owned
locomotive factory PT Industri Kereta Api (Inka), Transport Minister
Hata Rajasa said .

Hatta said GE Chief Executive Officer Jeffrey R. Immelt made the
pledge at a meeting with President Susilo Bambang Yudhoyono last
weekend.

He said the cost of revitalizing a locomotive is up to US$2 million,
adding PT Barata Indonesia will be involved to supply components .

In the first phase, GE and Inka will give priority to revitalizing 50
locomotives to be completed in the next two to three years, he said.

He said both GE and Inka have also agreed to build 200 new locomotives

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

Indonesian car sales set to peak in September

JAKARTA, October 2 (Asia Pulse/Antara) - Car sales in Indonesia were
estimated to rise further by 20% in September, from 28,063 units in
the previous month.

Car sales began to scale up - by 28.2% - in August, after a long slump
in the first seven months of the year, following fuel price hikes late
last year.

Joko Trisanyoto, the marketing director of the country's largest car
maker PT Toyota Astra Motor, said demand for new cars was stronger in
September, ahead of the Idul Fitri celebrations.

The trend, however, was not expected to continue in October, because
of the many holidays, Joko predicted.

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

FDI in Indonesian motorcycle industry to reach US$150 mln in '06

JAKARTA, October 2 (Asia Pulse/Antara) - Implementation of foreign
direct investment (FDI) in the motorcycle industry is forecast to
reach US$150 million this year.

Part of the investment plans have been implemented in the form of new
factories and capacity expansion, Industry Minister Fahmi Idris said .

TVS Motor Co (BSE:532343), the third largest motorcycle maker in
India, has confirmed its plan to build a factory in Indonesia, Fahmi
said.

TVS will build a factory with an annual production capacity of 300,000
units to cost US$50 million in Karawang, he said.

Meanwhile, Baja Auto Ltd and Piaggio plan to expand their capacity , he added.

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Indonesia's Matahari sets coupon of 9.5 pct for 150 mln-usd senior notes issue

JAKARTA, October 2 (XFN-ASIA) - Retailer PT Matahari Putra Prima has
set a coupon of 9.5 pct for its 150 mln-usd issue of three-year senior
notes, payable every six months, the company said.

Matahari said in a published statement that it would fully guarantee
the bonds, which were issued Friday by Netherlands-based unit Matahari
Finance BV.

The joint book-runners and lead managers for the issue are UBS
Investment Bank and Credit Suisse, while PT Ciptadana Capital is
acting as financial advisor, according to the statement.

Separately, the Investor Daily quoted Matahari president Benjamin
Mailool as saying that the proceeds of the issue, which was three
times oversubscribed, will be used to finance expansion in the
company's department store and hypermarket businesses.

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Indonesia's Adhi Karya to develop transport projects in Saudi Arabia - report

JAKARTA, October 2 (XFN-ASIA) - State-construction firm PT Adhi Karya
has signed a memorandum of understanding with the Bin Ladin group of
Saudi Arabia to construct monorail and other transport projects worth
around 5 bln usd, in Mekkah, Bisnis Indonesia reported.

It cited State Enterprise Minister Sugiharto as saying he has asked
Adhi Karya to raise financing for the projects in the Middle East .

Meanwhile, Adhi Karya's president Saiful Imam was cited as saying the
firm has decided to postpone a planned rights issue until next year.

He said before holding the issue, the company plans to acquire another
state-owned construction firm, though he did not name the firm or
provide other details.

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Stock alert - Indonesia's Adhi Karya higher on Saudi Arabia projects news

JAKARTA, October 2 (XFN-ASIA) - State-construction firm PT Adhi Karya
was sharply higher in active early trade on news that it has signed a
memorandum of understanding with the Bin Ladin group of Saudi Arabia
to construct monorail and other transport projects worth around 5 bln
usd, dealers said.

At 9.48 am, Adhi Karya was up 40 rupiah, or 6.56 pct, at 650 on volume
of 22.37 mln shares, making it the top traded stock by volume and
value.

The composite index was down 2.668 points at 1,531.947.

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Indonesia's Davomas owners terminate talks with Citadel for stake sale

JAKARTA, October 2 (AFX) - PT Davomas Abadi said its controlling
shareholders Tse Kam Bui and Husein Sutjiadi have ceased talks with
Citadel Horizon regarding a potential acquisition of a 24.9 pct stake
in Davomas.

'Consequently, the proposed transaction that was set out in the term
sheet agreement dated Aug 25 will longer be pursued,' Davomas said in
a statement.

Under the terms of the preliminary deal, Citadel had exclusive rights
to reach a definitive agreement to purchase the shares, for 25 days
from the signing of the agreement on August 24.

Davomas is one of the dominant producers and exporters of cocoa butter
and cocoa powder in Indonesia.

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Ireland's Waterford Wedgwood To Invest $125M In Indonesia

JAKARTA, October 2 (Dow Jones)--Ireland's Waterford Wedgwood PLC
(WTFU.DB) plans to invest $125 million in Indonesia to double its
output from its plant here in two years, Chairman Anthony O'Reilly
said Monday.

O'Reilly told reporters that all of the additional products will be exported.

He added that Indonesia is a good place for investing as the labor
skills here are better than in other countries, he said without
specifying the other countries.

The Dublin-based maker of luxury crystal and fine china has operated
in Indonesia for 11 years, he said.

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

Broker call - Indonesia's Asahimas Flat Glass maintained a 'buy' - Danareksa

JAKARTA , October 2(XFN-ASIA) - - State brokerage Danareksa said it is
maintaining its "buy" recommendation on PT Asahimas Flat Glass due to
improved glass demand from the automotive sector in the second half
and expectations for better margins for the firm in the last quarter
this year.

It has a 12 months target price for the stock of 4,600 rupiah. In mid
afternoon trade, Asahimas was up 200 rupiah, or 7.14 pct, at 3,000.

Danareksa analyst Erwan Teguh said in a client note that the company
is likely to benefit from a rebound in auto sales this half as well as
improved confidence in the overall domestic economy.

"Moreover, the prices of raw materials, including oil, have subsided,
pointing toward better Q4 margins," Teguh added.

Some efficiency measures being undertaken by the company such as
switching to gas from heavy oil will also help the company cut costs.

"That, combined with higher volumes and price increases, should nearly
triple earnings in 2007," he said.

In the first half to June this year, the company's net profit dropped
to 12.79 bln rupiah from 135.51 bln the year earlier, while sales fell
to 740.79 bln compared to 846.36 bln last year.

He estimates the company's sales will reach 1.4-1.5 trln rupiah for
full-year 2006, down from 1.72 trln last year, while net profit is
seen falling to 34 bln rupiah compared to 213 bln the year befroe. The
fall will largely reflect high oil prices, and a doubling of raw
material costs, which was exacerbated by lower volumes in the first
half.

The company's net profit next year is estimated at 83 bln rupiah,
rising further to 148 bln in 2008, while sales are seen at 1.64 trln
next year, increasing to 1.83 trln in the following year, Teguh said.

Asahimas Flat Glass is a 43.85 pct-owned unit of Japan's Asahi Glass Co Ltd.

Teguh noted that from a net asset value (NAV) perspective, the
company's worth is close to 8,500 rupiah per share.

"If one takes a more conservative stance, based on its normalised
earnings of some 200 bln rupiah, a 10 times price earnings ratio
suggests the company is worth 4,600 rupiah per share," he noted.

Asahimas Flat Glass produces two types of glass - flat glass and
automotive glass. It has over a 95 pct share of the domestic
automotive glass market and 40 pct of the flat glass market.

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Indonesia's Humpuss H1 net profit 93.03 bln rupiah vs 76.58 bln

JAKARTA, October 2 (XFN-ASIA) - Shipping firm PT Humpuss Intermoda
Transportasi's first half to June results:

Sales - 416.22 bln rupiah vs 397.46 bln
Operating profit - 123.39 bln rupiah vs 148.56 bln
Net profit - 93.03 bln rupiah vs 76.58 bln
Earnings per share - 44 rupiah vs 37

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Indonesia Bahtera Adimina books US$5.3 mln loss in H1

JAKARTA, October 2 (Asia Pulse/Antara) - State-owned fishery company
PT Bahtera Adimina Samudera has reported an increase in losses to Rp48
billion (US$5.3 million) for the first half of this year, down from
Rp44.46 billion in the same period last year.

Its net sales shrank 71.43 per cent to Rp4 billion from Rp14 billion,
its financial report showed.

Renewal of the operation licenses of two third of its ships have not
been approved, and in addition the fuel cost surged causing the poorer
performance, public accountant Heliantono said.

Heliantono expressed doubt that the company had the ability to
continue operation.

The number of its wooden vessels was reduced to eight in 2006 from 18
in 2005. In addition to the 8 wooden ships, the company still has 34
steel fishing ships but it could operate only 10 of the ships as the
maritime and fishery ministry has not approved the extension of the
company's operation licenses, he said without giving reasons.

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Indonesia's Astra Agro 8 mths CPO sales 617,712 tons; up 18.1 pct

JAKARTA, October 2 (XFN-ASIA) - PT Astra Agro Lestari said its crude
palm oil (CPO) sales volume rose 18.1 pct to 617,712 tons in the eight
months to August from 522,884 tons a year ago.

Exports, which accounted for 33.4 pct of the total sales, stood at
206, 530 tons, up 39 pct from 148,612 a year ago.

During the eight months, the average CPO price the company received
increased 2.9 pct to 3,407 rupiah per kilo, it said.

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

Indonesian crude palm oil slightly up on demand

JAKARTA, October 2 (Reuters) - Indonesian crude palm oil prices were
marginally higher on Monday, supported by some demand in the Muslim
fasting month of Ramadan and gains in Malaysian crude palm oil
futures.

At the state marketing centre in Jakarta, crude palm oil was traded at
4,180 rupiah ($0.455) per kg, compared with 4,178 last Thursday, with
some 2,250 tonnes changing hands.

The centre did not hold any auction on Friday.

"The (price) trend is up on rising demands for cooking oil during the
Ramadan and Eid al-Fitr," a Jakarta-based trader said. "Malaysian
gains have also supported higher prices."

Indonesia is the world's most populous Muslim country. During the
Islamic fasting month of Ramadan more oil is used to cook for evening
feasts when followers break their fasts.

Malaysian crude palm oil futures were marginally higher with the
benchmark third-month December <KPOZ6> <0#KPO:> contract on the Bursa
Malaysia Derivatives exchange up 3 ringgit at 1,562 ringgit ($424) a
tonne.

There was no auction in North Sumatra's Medan, the main port for palm
oil exports.

In Jakarta, olein traded flat at between 4,650 and 4,675 rupiah
($0.506-$0.509) per kg.

On the exports front, crude palm oil was offered at $427.5 a tonne for
October shipments, free on board Belawan, while bids were seen at
$422.5.

November and December shipments were offered at $425 a tonne, and bids
stood at $420.

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Joyo Indonesia News Service
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