[Kabar-indonesia] 21 RI Biz/Econ Reports: Excelcomindo/Ericsson; Infrastructure Summit; Cement

[JoyoNews at aol.com]

21 Reports:

- Ericsson wins 3G order from 
  Indonesian Excelcomindo
- Indonesia's XL launches 3G, 
  aims for 100,000 users
- Indonesia Aug cement consumption
  3.06 mln tons vs 2.79 mln in July
- Indonesia's Semen Gresik Aug 
  cement sales 1.55 mln tons 
  vs 1.43 mln in July
- Kadin optimistic about success 
  of 2nd infrastructure summit
- Indonesian banks play small role 
  in funding infrastructure development
- Asian Cocoa: Indonesia, Malaysia 
  Physicals Retrace Losses
- Asia Coffee - Weather and stocks 
  top trade agenda
- Indonesia's Bakrie Sumatra 
  wins management contracts 
  from 2 plantation cos
- Indonesia's Astra Agro 8 mths 
  CPO output 628,636 tons; 
  up 14.7 pct
- Singapore's Wilmar to buy Pacific 
  Rim Palm Oil for 11 mln usd
- Indonesia palm oil down on weak 
  sentiment
- Indonesia's BCA to pay 55 
  rupiah/share interim div on Nov 3
- Indonesia's Matahari H1 net profit 
  up 15.7 pct on Q2 performance
- Indonesian retailer adds another 
  hypermarket outlet in Jakarta
- Indonesia Bank Saudara To 
  Sell 500M Shares Via IPO In Nov
- Indonesia's Bank Ekspor sets coupons 
  for 500 bln rupiah-worth of bonds
- Indonesia's Astra Agro 8 mths CPO 
  output 628,636 tons; up 14.7 pct
- Singapore's Wilmar to buy Pacific Rim
  Palm Oil for 11 mln usd
- Indonesia palm oil down on weak
  sentiment
- Indonesian rubber producers hope 
  price continue to rise
- Bloomberg Commodities: Rubber 
  prices drop in wake of Thai military coup
- Indonesia's Sigmantara sells 34.05 pct 
  stake in Alfa for 242.99 bln rupiah.
- JP: Port authority seizes imported 
  animal feed 

Ericsson wins 3G order from Indonesian Excelcomindo

STOCKHOLM, September 21 (Reuters) - Ericsson said on Thursday 
that it had won an order to build a 3G and HSDPA network for Indonesian
operator PT Excelcomindo Pratama.

"Under the agreement, Ericsson will supply radio access products and
be responsible for the performance and improvement of the radio
network, as well as providing operations and maintenance services," it
said in a statement.

The deployment included Java, Bali and Lombok, with a focus on six
major cities, it added.

PT Excelcomindo Pratama Tbk has said it is hoping to sign up 100,000
customers this year for its third-generation services, which were
launched earlier on Thursday.

Excelcom , controlled by Telekom Malaysia Bhd , is the second operator
to offer 3G services in Indonesia, after market leader PT
Telekomunikasi Selular (Telkomsel). PT Indosat Tbk , Indonesia's
second biggest telecom company, is the third one.

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

Indonesia's XL launches 3G, aims for 100,000 users

JAKARTA, September 21 (Reuters) - Indonesia's third largest mobile
phone firm, PT Excelcomindo Pratama Tbk (XL), is hoping to sign up
100,000 customers this year for its third-generation services launched
on Thursday amid a mobile phone boom in Southeast Asia's biggest
economy.

Excelcom , controlled by Telekom Malaysia Bhd , is the second operator
to offer 3G services in Indonesia, after market leader PT
Telekomunikasi Selular (Telkomsel).

"I think by the end of they year we can have 100,000 (3G) users,"
Hasnul Suhaimi, Excelcom's newly appointed president director, told
reporters.

He said the firm estimated its capital expenditure next year at $500
million as it tried to add 4-5 million customers to its total user
base expected to touch 9 million at the end of this year.

"Next year Excelcom is aiming for 4-5 million new customers. Capital
expenditure would be $500 million. The funds would come from our
internal resources and also from loans or bonds. But we are still
calculating the numbers," Suhaimi said.

Excelcom had 8.7 million mobile phone users as of August.

Earlier this year, the Indonesian government granted 3G licences to
three operators. PT Indosat Tbk , Indonesia's second biggest telecom
company, is the third one.

Indonesia's mobile phone sector has been growing at a fast pace, but
some analysts say the country's 3G market may take a while to reach
critical mass as most users are price-conscious, pre-paid customers.

Many mobile phone makers have already been selling 3G-enabled handsets
in the country, where customers see state-of-the-art handset models as
a fashion statement even though their usage of non-voice services is
low.

Some industry experts say most non-voice revenue, which accounts for
some 30 percent of an operator's income, comes from short message
services, instead of data calls such as faxes and internet.

Mobile phone operators are expected to boost investment by 25 percent
this year to $2 billion as they gear up to roll out the infrastructure
for 3G.

The mobile phone sector in the world's fourth most populous nation,
home to 220 million, has been growing rapidly despite some of the
highest phone tariffs in the world, which some say prevents players
from unlocking the industry's full potential.

With around 58 million users, mobile phone penetration rate in
Indonesia is only about 25 percent, much lower compared with around 80
percent in Malaysia and more than 40 percent in the Philippines.

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

Indonesia Aug cement consumption 3.06 mln tons vs 2.79 mln in July

JAKARTA, September 21 (XFN-ASIA) - Domestic cement consumption rose
for the fourth straight month to 3.06 mln tons in August from 2.79 mln
in July but was still 1.1 pct below the 3.10 mln tons recorded in
August last year, a report from the Indonesian Cement Association
(ASI) showed.

It said cement consumption in Java last month surged to 1.90 mln tons
from 1.74 mln in July but was down 5 pct year-on-year. Java accounted
for 62 pct of total nationwide cement consumption in August.

All other markets outside Java reported year-on-year growth, the report said.

It said industry-wide cement and clinker exports declined to 637,922
tons in August from 734,678 tons in July, but were up 13.7 pct
year-on-year.

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

Indonesia's Semen Gresik Aug cement sales 1.55 mln tons vs 1.43 mln in July

JAKARTA, September 21 (XFN-ASIA) - PT Semen Gresik, the country's
largest cement maker, recorded total sales of 1.55 mln tons of cement
in August against 1.43 mln in July and 1.62 mln a year ago, data from
the Indonesian Cement Association (ASI) showed.

The report said Semen Gresik's domestic cement sales increased to 1.43
mln tons in August from 1.22 mln in July but was down from 1.44 mln a
year ago.

It said in the eight months to August, Semen Gresik's cement sales
declined to 10.48 mln tons from 10.66 mln the year earlier, with a 28
pct drop in exports offsetting a mild 1.7 pct gain in domestic sales.

The company sold 9.56 mln tons of cement in the local market over the
first eight months against 9.4 mln a year ago.

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

Kadin optimistic about success of 2nd infrastructure summit

JAKARTA, September 21 (Asia Pulse/Antara) - The Indonesian 
Chamber of Commerce and Industry (Kadin) believes the holding 
of the 2nd Infrastructure Summit in November 2006 will result in 
more investors coming to Indonesia to do business in the 
infrastructure sector.

"I believe Indonesia will hold a successful second infrstructure
conference in the next two months as the country has made better
preparation for the event," Kadin's electricity committee chairman
Palbakti S Ludin said here Wednesday.

He said the government should cooperate with the House of
Representatives and Kadin to improve the investment climate in
Indonesia notably in the infrastructure sector.

Ludin said improving the investment climate in Indonesia by
simplifying the administrative processes to obtain the necessary
permits was not a task that could accomplished in a short period.

However, Kadin was already colaborating with the House to formulate
bills on investment and taxation.

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

Indonesian banks play small role in funding infrastructure development

JAKARTA, September 21 (Asia Pulse/Antara) - The banking sector has so
far played a small role in financing infrastructure development in
Indonesia, Bank BNI director Achmad Baiquni said here Wednesday.

Banks had only channeled 7.7 per cent of their loans to infrastructure
development in the first semester of 2006, he said at a seminar on
banks' role in funding infrastructure projects.

The figure, however, was higher than 6.5 per cent in 2003, he said.

"So, the banking sector still has a great potential to finance
development in the infrastructure sector," he said.

Baiquni said the banking sector had channeled Rp54.718 trillion (US$6
billion) out of its total credits of Rp709.588 trillion to the
infrastructure sector by June 30, 2006.

Some Rp5.633 trillion of the Rp54.718 trillion was distributed to
electricity, gas, and water development; Rp30.061 trillion to
construction field; and Rp19.024 trillion to transportation and
communication

Cumulatively, infrastructure funding would reach Rp1,300 trillion for
the 2005-2006 period, compared to Rp225 trillion the State Budget had
projected for the same period.

"So there is still a deficit of Rp1,080 trillion in infrastructure
funding in the 2005-2006 period," Baiquni said.

Besides the State Budget, 21 per cent of infrastructure development
finance would come from such domestic funding sources as financial,
insurance, pension fund and mutual fund institutions, and 62 per cent
from multilateral sectors like private, banking and infrastructure
funds.

"The remaining 13.9 per cent will come from national financial
institutions," Baiquni said.

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

Asian Cocoa: Indonesia, Malaysia Physicals Retrace Losses

JAKARTA, September 21 (Dow Jones)--Malaysian physical cocoa prices
Thursday were lower on-week, while Indonesian prices remained
unchanged, traders said.

But prices for cocoa beans from both areas were significantly higher
than yesterday, continuing to retrace earlier losses in the week.

Cocoa futures on the New York Board of Trade - a key destination for
Indonesian beans - held onto strong gains Wednesday due to
arbitrage-related and industry buying driven by currency and demand at
low prices.

The most-active December contract finished the session up $32 at
$1,467/ton, near the high of its $1,445 and $1,470/ton price range.

Second most-active March settled up $29 at $1,502/ton, trading between
$1,483 and $1,503/ton. Estimated final futures volume was 8,236 lots
with 763 calls and 733 puts.

On the London International Financial Futures and Options Exchange,
where many Malaysian beans are sold, the most active December contract
finished up GBP16 at GBP833/ton, while March settled up GBP14 at
GBP850/ton.

Offers for Malaysia's SMC 1B cocoa beans were quoted between
MYR5,200-5,300 a metric ton, down from MYR5,365/ton last week.

Offers for Indonesia's Sulawesi fair-average quality cocoa beans were
quoted at IDR11,300 a kilogram, unchanged from last week.

But these offers were MYR50-150 and IDR400 higher, respectively, than
yesterday's, as recent fluctuation in prices continued.

"The market came down and then picked up a bit," a trader in Singapore
said. "The currencies helped a bit."

Some regional currencies, including the ringgit and rupiah, lost
ground against the dollar following Tuesday's coup in Thailand.

The dollar ended at IDR9,170 rupiah Wednesday, after touching
IDR9,205, and has since eased to IDR9,146 at the end of trading
Thursday.

The dollar strengthened to MYR3.6705 as of 0914 GMT Thursday, after
moving between MYR3.6770 and MYR3.6950 Wednesday.

Weak local currencies often boost commodities prices in Asia, as many
commodities are traded in U.S. dollars.

While market participants are awaiting market direction from the yield
and timing of the mid-crop harvest in Indonesia, decreased production
may occur in October during the Muslim fasting month of Ramadan and
the subsequent Idul Fitri holidays, traders said.

Agricultural activity in countries with a significant Muslim
population, such as Malaysia and Indonesia, traditionally tails off
during Ramadan - which begins this year on Sept. 24 - and Idul Fitri
on Oct. 24-25.

The main cocoa harvest on Sulawesi island falls in April, peaks
through May and June, and tapers off in July. The mid-crop is usually
harvested from October through December.

Central, south and southeast provinces of Sulawesi account for 75% of
Indonesia's total cocoa output.

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

Asia Coffee - Weather and stocks top trade agenda

By Ho Binh Minh

HANOI, September 21 (Reuters) - Asian coffee traders are keeping an
eye on rains and stocks as supplies have tightened in the world's two
biggest robusta producers, while weather changes in the next month
will play a key role in new harvests.

Traders in Vietnam, the world's top producer of robusta, said stocks
have dwindled, causing delays in the past months and some exporters
have had to re-purchase beans from foreign buyers' warehouses to
fulfil their delivery commitments.

Dealers in Indonesia, the world's second-largest producer of the beans
used in instant coffee, said daily arrivals to the main export port of
Panjang in Lampung have halved to 150 tonnes in recent weeks from 300
tonnes a day during the peak in July.

"Even though you have money now, you still can't buy coffee simply
because the stocks have run out," a trader with a foreign firm in Ho
Chi Minh City said on Thursday.

Fears over bean shortages may fade with a possibility that the rainy
season may end early and Vietnam's harvest can start next month in the
Central Highlands, traders said.

"After recent heavy rains, there will come sunny days and coffee
cherries will ripen quickly so we hope that supplies will rise in
November," the Ho Chi Minh City-based trader said.

A Vietnamese state trader forecast the harvest to start early in
October. "That's one month earlier than usual," he said.

EL NINO IN SIGHT A weak El Nino forecast as developing in the Pacific
region may contribute to an early ending of the rainy season in
Vietnam while the key growing island of Sumatra in Indonesia has not
had rain for months during the coffee flowering period.

El Nino is the weather phenomenon caused by the warming of Pacific
waters off South America and can cause drought.

The dry weather has raised concerns about the prospect of Indonesia's
next harvest due to start in February 2007.

"Flowering has started in some areas but we haven't seen any rains in
the last few months. I am afraid the dry weather will affect flowering
and the quality of the beans," said a dealer in Lampung.

"The beans will shrink if the dry weather persists," he said.

Indonesian forecasters have said this month the southern part of
Sumatra, especially Lampung, will have a drier rainy season this year.
Indonesia's rainy season runs from October to March.

London's November contract <LKDX6> ended down $7 at $1,422 a tonne on
Wednesday on speculative selling after gains supported by a news
report of Vietnam's crop, while speculators in Indonesia held back on
stocks and waited for rebounds.

The contract hit a 7-½ year high of $1,618 a tonne earlier this month.

PREMIUM TO LONDON

Several Indonesian exporters offered beans firmly at a premium of
between $20 and $30 a tonne to London's November contract, citing
tight supplies while others offered discounts.

"There are about 10 to 15 percent of stocks left ... Exporters may
even have less beans and they only buy coffee to fulfil their
contracts," said the Lampung trader.

Sumatran Grade 4 robusta, collected from farmers and middlemen, fell
to between 12,400 rupiah and 12,500 rupiah ($1.36-$1.37) per kilogram
from 13,400-13,500 last week.

The export price eased to between $1,410 and 1,420 a tonne, free on
board at Lampung port. Arabica Mandheling was offered at $3,390 a
tonne, free on board at Belawan port in North Sumatra.

Some exporters offered Lampung beans at a discount of $30 a tonne to
London and bids were at $40-$50, another dealer said.

"Things were messy when the market dropped, and now some exporters
also want to sell beans on par with London prices," he said.

In Vietnam, prices eased 4.5 percent from last week to 21,000 dong
($1.31) per kilogram on Thursday, suggesting Vietnamese robusta 5
percent black and broken beans grade 2 would be priced at between
$1,355 and $1,360 a tonne.

"But as the stocks ran out, nobody is making any offers," a trader said.

On Wednesday the Vietnam Coffee and Cocoa Association said the new
crop could fall "far below" a U.S. forecast of 13.85 million bags as
pests and diseases have hits part of the trees.

But traders said the coffee association often underestimated in a bid
to push prices up. The association's report released on Wednesday
carried no specific output figure.

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

Indonesia's Bakrie Sumatra wins management 
contracts from 2 plantation cos

JAKARTA, September 21 (XFN-ASIA) - PT Bakrie Sumatra Plantations said
it has signed a contract to manage oil palm plantations and processing
plants owned by PT Grahadura Leidong and PT Esa Citra Buana.

Under the contract, Bakrie Sumatra will manage 8,323 hectares of oil
palm plantations in North Sumatra.

It is also agreed that Bakrie must increase the plantations'
productivity by at least 15 pct in five years.

The statement said Grahadura and Esa Citra also gave an irrevocable
option to Bakrie Sumatra to acquire Esa Citra's shares in Grahadura.

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

Indonesia's Astra Agro 8 mths CPO output 628,636 tons; up 14.7 pct

JAKARTA, September 21 (XFN-ASIA) - PT Astra Agro Lestari said its
eight months to August crude palm oil (CPO) output reached 628,636
tons, up 14.7 pct from a year ago on the back of stronger palm fruit
production.

It said high grade CPO output, called 'Super CPO', made up 58 pct of
the total output.

Over the same period, fresh palm fruit production grew 9.1 pct to 2.5 mln 
tons.

The company has projected its full year CPO output to reach 965,000 tons.

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

Singapore's Wilmar to buy Pacific Rim Palm Oil for 11 mln usd

SINGAPORE, September 21 (XFN-ASIA) - Integrated argribusiness group
Wilmar International Ltd said it will buy Pacific Rim Palm Oil Ltd
(PRPOL) for 11 mln usd to expand its oil palm plantation acreage.

PRPOL has a 51 pct stake in PT Asiatic Persada, which owns about
30,000 hectares of plantation land in Jambi Province, Sumatra.

As part of the acquistion, Wilmar will also assume the existing 23 mln
sgd shareholder loan to Asiatic.

Wilmar said the acquistion will be funded by internal resources and it
is not expected to have any material impact on the company's financial
results for the year to December.

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

Indonesia palm oil down on weak sentiment

JAKARTA, September 21 (Reuters) - Indonesian palm oil prices were down
on Thursday because of weak market sentiment following unstable prices
in Malaysian palm oil futures, traders said.

In North Sumatra's Medan, the main port for palm oil exports, crude
palm oil fell to 4,120 rupiah ($0.451) per kg from 4,158 rupiah on
Wednesday.

"The market sentiment is very weak after seeing the Malaysian index
that was moving up and down today," a Medan-based trader said, adding
some 900 tonnes of crude palm oil were sold.

By the midday break, the benchmark third-month December <KPOZ6>
<0#KPO:> contract on the Bursa Malaysia Derivatives exchange fell two
ringgit to 1,526 ringgit ($416) a tonne and later closed at 1,535
ringgit.

Unfavourable Malaysian prices also put presure on crude palm oil and
olein markets in Jakarta.

Cooking oil prices traded between 4,675 and 4,690 rupiah per kg
compared with 4,730 rupiah on Wednesday, with only some 450 tonnes of
olein changing hands.

There was no auction in the state marketing centre in Jakarta, which
sells palm oil from state plantations, reflecting slack trading
interest.

"Players probably will remain on the sidelines waiting for more firm
direction," a trader in Jakarta said.

On the export front, sellers offered November and December shipments
at $425 a tonne free on board Belawan port, while bids stood at
$417.5.

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

Indonesia's BCA to pay 55 rupiah/share interim div on Nov 3

JAKARTA, September 21 (XFN-ASIA) - PT Bank Central Asia (BCA), the
country's second largest bank by assets, said it will pay an interim
dividend of 55 rupiah per share on Nov 3.

It said the total dividend payment will amount to no more than 677.28
bln rupiah, or 33 pct of its first half to June net profit.

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

Indonesia's Matahari H1 net profit up 15.7 pct on Q2 performance

JAKARTA, September 21 (XFN-ASIA) - Retailer PT Matahari Putra Prima's
first-half net profit rose 15.7 pct year-on-year to 44.1 bln rupiah on
the back of its performance in the second quarter and expansion of its
network of stores, the company said.

Matahari's second-quarter net profit rose to 31.9 bln rupiah from 12.2
bln rupiah in the first.

First-half sales rose 25.3 pct to 3.48 trln rupiah from 2.78 trln
rupiah a year earlier, driven mainly by sales in the supermarket and
hypermarket division, which increased by 60.7 pct to 1.56 trln rupiah.
Sales in the department store division grew by 6.5 pct to 1.75 trln
rupiah.

The company also attributed the increase in first-half net profit to
control of its operating expenses, which grew by only 12.7 pct
year-on-year.

"This translated into operating income reaching 112.4 bln rupiah, or
3.2 pct of sales, from last year's 68.3 bln rupiah or 2.5 pct of
sales," Matahari said in a written statement.

"We are pleased that we have been able to drive Matahari to reach its
encouraging first-half results, even though we were operating in a
weak and challenging retail environment impacted by the recent
increases in fuel prices," the statement quoted Matahari president
Benjamin Mailool as saying.

Matahari opened three hypermarkets, two children's specialty stores
and two entertainment centers in the first half. It expects to open
four department stores, five hypermarkets, five children's specialty
stores and several entertainment centers in the second half.

This will result in a national network of 84 department stores, 27
hypermarkets, 35 supermarkets, 10 children's specialty stores and
approximately 113 family entertainment centers by the end of this
year, the company said.

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

Indonesian retailer adds another hypermarket outlet in Jakarta

JAKARTA, September 21 (Asia Pulse/Antara) - The PT Matahari
Supermarket, which claims to be the Indonesian biggest retail company,
will continue to expand its presence across the country by opening
more outlets in the next few years, an executive said.

"By 2010, there will be over 80 outlets," Carmelito Regaldo, director
of merchandising and marketing of PT Matahari Supermarket told
reporters here on Wednesday.

He was commenting on the grand launch of Hypermart Jakarta City Center
(JaCC) on Thursday.

Matahari has opened 25 outlets for the last two years and the 5,000
meter square Hypermart JaCC is the third outlet in Jakarta after Gajah
Mada and Cibubur.

He expressed his optimism that the outlet would be the best choice for
Jakartans, in Thamrin or Tanah Abang areas in particular for shopping.

"Though JaCC is located near the Hotel Indonesia traffic circle, where
various organizations often hold demonstrations, we do not worry about
demonstrations. We are, however, optimistic they will go shopping
afterwards," he added.

The outlet displays 30,000 kinds of products ranging from foodstuffs,
garments, electronic, electric appliances, footwear and other other
products.

The company has also prepared some commodities and products like rice,
wheatflour, margarine, eggs, toothpaste, which are badly needed during
Ramadhan fasting month.

"Based on our last experiences, we prepare to add more products for
Ramadhan fasting month since last March," Carmelito said.

The Matahari Supermarket is under publicly-listed retail comapny PT
Matahari Putra Prima, which has also 82 departments stores, 40
supermarkets and 110 family entertainment center Timezones.

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

Indonesia Bank Saudara To Sell 500M Shares Via IPO In Nov

JAKARTA, September 21 (Dow Jones)--Indonesia's PT Bank Saudara said
Tuesday it plan to sell as many as 500 million shares, equivalent to a
33.33% stake, via an initial public offering between Nov. 29 and Dec.
1.

The bank has indicated that the shares will be priced between
IDR110-IDR140 each.

It plans to list the shares on the Jakarta Stock Exchange on Dec. 7.

PT Kresna Securities is the lead underwriter for the IPO.

The bank said it will use 80% of the proceeds from the sale to expand
lending, with the remainder to be used to develop its information and
technology system.

Conglomerate Arifin Panigoro, the founder of gas and oil producer PT
Medco Energi (MEDC.JK), owns more than 50% of Bank Saudara.

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

Indonesia's Bank Ekspor sets coupons for 500 bln rupiah-worth of bonds

JAKARTA, September 21 (XFN-ASIA) - State-owned PT Bank Ekspor
Indonesia has set the coupons for three series of bonds, together
worth 500 bln rupiah, that it plans to issue, the bank said.

The company has said the 150 bln rupiah-worth of Series A bonds, with
a tenor of three years, would have a coupon of 12.5 pct; the 200 bln
rupiah-worth of Series B bonds, with a tenor of four years, would have
a coupon of 12.7 pct; and the 150 bln rupiah-worth of Series C bonds,
with a tenors of five years, would have a coupon of 12.8 pct.

Bank Ekspor said that to expand its export financing business it would
use 80 pct of the proceeds for direct lending and the rest for
refinancing.

The bond offer will last from tomorrow until Tuesday.

PT Trimegah Securities and state-owned PT Danareksa are the
underwriters of the issue.

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

Indonesian rubber producers hope price continue to rise

JAKARTA, Sept 21 Asia Pulse - After plunging from over US$2 to US$1.48
per kg, early this month, the price of natural rubber yesterday showed
signs that it has begun a steady rise again as it increased up to
US$1.72 a kilograms.

Producers in Indonesia hope the rising trend will continue and that
the price will fully recover to reach what is considered an idea level
- US$1.8 to US$2.2 a kg.

At this level, rubber farmers will earn profit, chairman of the
association of rubber companies (Gapkindo) Asril Sutan Anas said
Wednesday.

Anas said the market is seeking new equilibrium that caused the price
instability lately and the price fall came following a report issued
by the International Rubber Study Group saying that the market was
being oversupplied.

Rubber prices hit a peak of US$2.4 a kg between May and July.

Indonesia is the world's second largest producer of natural rubber
after Thailand. Together with Malaysia, the third largest, the three
Asean countries dominate supply of natural rubber to the world market.

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

Commodities: Rubber prices drop in wake of Thai military coup

By Jae Hur Bloomberg News

September 21 (Bloomberg) -- SINGAPORE Rubber futures declined by their
maximum trading limit Wednesday amid speculation that a military coup
in Thailand, the world's top exporter of the material, had delayed a
producers' meeting to discuss output and prices.

Thailand's currency fell and the country's credit ratings were put on
review for possible downgrade after the military seized control of the
country Tuesday. Shuji Sugata, an assistant manager of futures at
Mitsubishi Corp. in Tokyo, said that the International Rubber
Consortium may have been prevented from meeting in Bangkok.

"That's why investors sold rubber futures today," Sugata said.

Reuters later reported that the meeting to discuss ways to stabilise
rubber prices went ahead, but ended a day earlier than planned. The
consortium issued a statement saying that it was ready to implements
measures if required, but gave no specific details.

Rubber futures in Tokyo, the world's biggest futures market for the
material, have fallen 35 percent since reaching a record on June 13,
tracking declines in other commodities, and as supply of the material
used in tire making has risen.

Rubber for delivery in February 2007, the most actively traded
contract on the Tokyo Commodity Exchange, declined by ¥15 to ¥211 a
kilogram. That is its lowest closing price since Jan. 11.

Thai government officials, together with those from Indonesia and
Malaysia, had been expected to attend the International Rubber
Consortium's meeting, Sugata said. The consortium's Bangkok office
could not be reached for comment Wednesday.

Meanwhile, crude oil fell, touching $60 a barrel for the first time
since March, after President George W. Bush backed diplomatic efforts
to resolve a dispute over Iran's nuclear program, and a report showed
a greater-than-expected increase in U.S. fuel inventories.

Crude oil for October delivery fell $1.20 to $60.46 a barrel on the
New York Mercantile Exchange.

Gold for December delivery rose $3 to $586.20 an ounce on the Comex
division of the same exchange as prices near three-month lows drew
buyers.

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

Indonesia's Sigmantara sells 34.05 pct 
stake in Alfa for 242.99 bln rupiah.

JAKARTA, September 21 (XFN-ASIA) - PT Sigmantara Alfindo said in a
statement that it has sold 159.34 mln shares, equivalent to a 34.05
pct stake, in consumer goods retailer and wholesaler PT Alfa
Retailindo for 242.99 bln rupiah.

The statement did not identify the buyer though Singapore-based Prime
Horizon Pte had previously disclosed that it was in talks with
Sigmantara to buy a 34.05 pct stake in Alfa.

After the sale Sigmantara will still hold a controlling 55 pct stake in Alfa.

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

The Jakarta Post
Sept. 21, 2006

Port authority seizes imported animal feed 

Ridwan Max Sijabat

The Tanjung Priok Port Authority has seized 167 containers of animal feed, 
which arrived at the port from Spain last week. 

Contaminated feed is widely believed to have started the mad cow epidemic. 

Cerah Bangun, chief investigator at the Tanjung Priok tax and excise office, 
said Wednesday the containers, which arrived aboard three vessels, would not 
be unloaded until a full investigation had been carried out. 

"We can't explain further because the investigation is still going on," he 
said, adding that the three vessels were MSC Paris, MSC Valencia and MSC 
Giovanna. 

He could say the 167 containers of poultry feed contained animal parts, but 
not whether they were from sick cows. "Samples have been sent to the laboratory 
for further testing and the feed will be rejected if it is found to have been 
made with the remains of sick cows," he said. -truncated-

------------------------------------------
Joyo Indonesia News Service
------------------------------------------