Tuesday, March 24, 2009
Business & Trade updates from Jakarta
Business Updates courtesy
(Joyo News Service)
- Indonesia's Feb cement consumption down 4.5 pct y/y
- Astra Target Raised 18% at Bank of America on Sales Outlook
- Jasa Marga Increases Stakes In 4 Toll-Road Subsidiaries
- Jasa Marga Seeks Go-Ahead for Toll-Road Purchases
- Berlian Laju 2008 Net Profit IDR1.56 Tln Vs IDR758.98 Bln
- Malaysia's Pantai Holdings Plans Indonesian Expansion -Report
- Catur Posts Net Profit Rise of 67%
- Nike Won't Relocate Its Investment In Indonesia: Minister
- Indonesian Govt Has Not Decided On Holding Co For State Firms
- Manulife Indonesia Posts 34% Increase In New Premium Income
- Indonesia's Artha Graha Posts 3.7% Increase In Net Profit
- Indonesia's Perhutani Seeking Permission To Export Teak
- Indonesia To Replace Chemical Fertilizers With Organic Ones
- Indonesian Govt Optimistic To Achieve Rice Production Target
- Construction Of Indonesian DDT Project To Start This Year
Indonesia's Feb cement consumption down 4.5 pct y/y
JAKARTA, March 23 (Reuters) - Indonesia's domestic cement
consumption fell 4.5 percent in February to 2.86 million tonnes
from a year ago, data from the country's cement industry
association showed on Monday.
However, the country's biggest cement producer, PT Semen Gresik
Tbk , recorded a 5.2 percent rise in total cement sales to 1.32
million tonnes in February, the data showed.
The firm, which has market capitalisation of about $1.8 billion,
previously said it expected Indonesia's cement demand would fall
this year due to the global economic crisis and a slowdown in
Indonesia's economic growth.
The data from the Indonesian Cement Association also showed
cement consumption in Southeast Asia's top economy dropped by
7.8 percent to 6.03 million tonnes in the January-February
Indonesian authorities have earmarked spending on infrastructure
as part of its 73.3 trillion rupiah ($6.24 billion) fiscal
stimulus package intended to create jobs and lift economic
growth this year.
The government expects economic growth to slow to 4.5 percent
this year, from 6.1 percent in 2008.
(Reporting by Sonya Angraini; Editing by Ed Davies)
Astra Target Raised 18% at Bank of America on Sales Outlook
By Shiyin Chen
March 23 (Bloomberg) -- PT Astra International, Indonesia’s
biggest auto retailer, had its share-price estimate raised 18
percent to 16,750 rupiah at Bank of America Corp., which said
motorcycle and car sales will decline less than earlier
Astra jumped 8 percent to 14,800 rupiah as of 9:43 a.m. in
Jakarta trading, the biggest gainer on the Jakarta Composite
Jasa Marga Increases Stakes In 4 Toll-Road Subsidiaries
JAKARTA, March 22 (Dow Jones)--Toll road builder and operator PT
Jasa Marga (JSMR.JK) said Monday in a prospectus that it plans
to increase its stake in four toll road subsidiaries.
The nation's largest toll road company by assets and revenue
said it plans to increase its stake in PT Marga Kunciran
Cengkareng to 75% from 20%, in PT Marga Trans Nusantara to 60%
from 30%, PT Nujyasumo Agung to 55% from 1.71%, and PT Jakarta
Lingkar Baratsatu to 50.97% from 22.98%.
Marga Kunciran operates a 15.2-kilometer West Jakarta Outer Ring
Road, Marga Trans operates 11.2-km East Jakarta Outer Ring Road,
Marga Nujyaso operates 36.3-km toll road in East Java and
Jakarta Lingkar operates a 9.7-km toll road in West Jakarta.
Jasa Marga said that it will finance the stake purchase in the
four subsidiaries through internal cash and funds raised from an
initial public offering held in 2007.
The company didn't give the value of the transactions. It plans
to hold a shareholders meeting on March 25 to get approval for
The Jakarta Globe Tuesday, March 24, 2009
Jasa Marga Seeks Go-Ahead for Toll-Road Purchases
State-owned toll road operator PT Jasa Marga Tbk said it would
seek shareholder approval at an extraordinary general meeting on
Wednesday to increase its stake in three troubled construction
firms tied to the stalled East Java highway project, as widely
Jasa Marga wants to expand its stakes in PT Marga Kunciran
Cengkareng, PT Marga Trans Nusantara and PT Marga Nujyasumo
Agung. It is also likely to seek approval to take a stake in PT
Jakarta Lingkar Baratsatu, and an option to take a controlling
interest. Jasa Marga said it would finance the purchases with
internal funds and the proceeds of its initial public offering,
in addition to tapping the government’s revolving fund for land
It said last month that it would start buying concessions on the
project, which will stretch 1,100 km from Jakarta’s Tanjung
Priok Port to Tanjung Perak Port in Surabaya, East Java Province.
The road was scheduled to open early this year, but unqualified
concessionaires approved to build sections of the road have
since had to abandon their bids or seek government help.
Jasa Marga said it would buy 39 percent of MKC, now 60 percent
held by CMS Works International. State-owned construction firm
PT Wijaya Karya Tbk, or Wika, holds an 8 percent stake. MKC has
a 35-year concession for 15.2 km, with construction scheduled to
start in 2010 to 2011 for Rp 2.8 trillion ($243.6 million).
Jasa Marga said it would raise its stake in MTN to 60 percent
for Rp 406 billion. MTN has a contract to build parts of the
Kunciran-Parigi and Parigi-Serpong roads.
Jasa Marga said it signed a deal with MNA shareholders to
increase its stake to 55 percent for Rp 330 billion, in addition
to Rp 527 billion it plans to inject into the company.
Berlian Laju 2008 Net Profit IDR1.56 Tln Vs IDR758.98 Bln
JAKARTA, March 22 (Dow Jones)--Shipper PT Berlian Laju Tanker
(BLTA.JK) said Monday its 2008 net profit doubled due mostly to
an increase in operating revenue.
Net profit for 2008 rose to IDR1.56 trillion from IDR758.98
billion the previous year.
Operating revenue at the nation's largest shipper by assets rose
to IDR7.00 trillion from IDR3.64 trillion.
Assets as of Dec. 31 were IDR24.98 trillion, compared with
IDR20.67 trillion a year earlier.
Malaysia's Pantai Holdings Plans Indonesian Expansion -Report
KUALA LUMPUR, March 22 (Dow Jones)--Pantai Holdings Bhd. is in
talks with the Indonesian government to further expand its waste
disposal business to cover the whole of Java, the New Straits
Times reported, quoting an executive.
The daily said that medical group Pantai, 60%-owned by Khazanah
Nasional Bhd. and 40% by Singapore's Parkway Holdings Ltd.
(P27.SG), was confident of securing the concession as it is
already the concessionaire for the treatment of medical waste in
"We are already there in Java, so it will be easier. If
possible, we want to cater for the whole of Java island. We are
looking at Jakarta as well as East and central Java," said
Managing Director Faisal Ismail.
The daily also quoted Faisal as saying that the group is looking
to add another hospital to its existing network of nine
hospitals in Malaysia.
"We are looking at both greenfield projects as well as merger
and acquisition opportunities," Faisal said.
The Jakarta Globe
Monday, March 23, 2009
Catur Posts Net Profit Rise of 67%
The publicly listed owner of the Mitra10 hardware store chain,
PT Catur Sentosa Adiprana Tbk, said its net profit rose 67
percent last year, boosted by a 27 percent rise in sales.
It booked a net profit of Rp 56.2 billion ($4.77 million) in
2008, compared with Rp 33.5 billion a year earlier, while sales
were Rp 2.7 trillion compared with Rp 2.1 trillion in 2007.
“In 2008, the retail unit of the Mitra10 hardware store chain
contributed earnings of Rp 495.6 billion,” Catur’s director,
Idrus Widjajakusuma, said.
He said retail sales grew 38 percent, contributing a total
increase in earnings of 18.3 percent, compared with 16.8 percent
Idrus said the construction materials distribution unit posted
sales of Rp 2.1 trillion, a 25 percent rise compared with Rp 1.6
trillion the previous year, while the chemical substance
distribution unit recorded sales of Rp 156 billion compared with
Rp 132 billion a year earlier.
Idrus said construction materials distribution contributed 75.9
percent to total earnings, while chemical distribution
contributed 5.8 percent.
Idrus said the company expected its retail unit to grow by 20
percent to 30 percent this year, along with the expansion in
some local areas.
Nike Won't Relocate Its Investment In Indonesia: Minister
JAKARTA, March 23 Asia Pulse - Nike said it would not relocate
move its investment from Indonesia but continue to develop its
business in the country, Industry Minister Fahmi Idris said.
"Nike said it is going to shut down four of its factories but
none of them are located in Indonesia," the minister said here
Minister Fahmi Idris said he had received a message from Nike
representative in Indonesia John Ricard who said Nike would not
shut down its factories in Indonesia.
The Nike representative said Nike would reduce the volumes of
its production in Indonesia in the next six to 12 months.
"The United States, where Nike is based, still sees Indonesia as
a place which is still safe for investment and its business
climate is still conducive," Fahmi Idris said.
He said that Nike was also planning to stop orders in four of
its factories in a number of countries. "They consider that our
business climate is the most conducive one if compared with
those of other countries," the minister added.
So, the stoppage by Nike of its orders would not have a negative
impact on Indonesia. On the other hand, it could even create
additional orders in Indonesia, the minister said.
Nike is planning to stop orders in four of its factories because
of the 20 per cent fall in demand for shoes on the world market.
Nike so far has shoe factories in a number of countries such as
Vietnam, China, Thailand and Indonesia.
Indonesia's national shoe production reaches 1.2 billion pairs,
of which 800 million were sport shoes. Of the sport shoes, 60
per cent are supplied by Nike.
Records show that Indonesia's shoe consumption reached 235
million pairs, of which 40 per cent or 94 million pairs are
domestically produced and 60 per cent or 141 million are
Indonesian Govt Has Not Decided On Holding Co For State Firms
JAKARTA, March 23 Asia Pulse - The Indonesian government has yet
to decide on a holding company for state-owned firms engaged in
investment, banking, financing services and insurance, Minister
of State Enterprises Sofyan Djalil said.
"No decision has been made with regard to the holding company
for state firms. But PT Danareksa is one of the many options so
far," the minister said here on Friday.
He said that the ministry of state enterprises was still in the
stage of making formulations. It would be decided later which of
the state firms would be appointed to serve as a holding company.
"The possibility of Danareksa to be appointed as a lead holding
is only one of the many options that the ministry would
consider," he said.
Sofyan Djalil said that his ministry would consider the pros and
cons of the options.
"We will use the best, easiest and most flexible way for
achieving the target of setting up the holding company," he
He said that the establishment of a holding firm for investment
and financial service companies was part of the obligation and
implementation of the single presence policy required by Bank
Indonesia (BI), the central bank.
The establishment of the holding company is also an effort of
the ministry of enterprises to make state companies financially
Manulife Indonesia Posts 34% Increase In New Premium Income
JAKARTA, March 23 Asia Pulse - PT Asuransi Jiwa Manulife
Indonesia reported a 34 per cent increase in new premium income
to Rp1.06 trillion (US$88.3 million) last year from Rp787.26
billion in the previous year.
The Chief Agency Officer of the life insurance company Nelly
Husnayati attributed the increase to good performance of sales
agents and cooperation with banks under bancassurance .
Sales agents account for 75 per cent of the company's premium
income encouraging it to recruit more agents, Husnayati said.
She said the number of sales agents will be increased from 4,500
at present to 5,800 by the end of this year.
The company posted an increase of 7 per cent to Rp1.8 trillion
in premium income from old policy holders bringing its total
premium income to Rp2.86 trillion , up from Rp2.46 trillion in
the previous year.
This year the company plans to open business in sharia
insurance, the newspaper Investor Daily said.
Indonesia's Artha Graha Posts 3.7% Increase In Net Profit
JAKARTA, March 23 Asia Pulse - PT Bank Artha Graha Internsional
(JSX:INPC) reported a 3.7 per cent increase in net profit last
year from the previous year.
Data from Bank Indonesia showed that the publicly listed bank
recorded a 12.8 per cent increase in net interest income to
Rp429.45 billion (US$35.8 million) last year.
The improved financial performance of the bank was attributable
to credit expansion with outstanding credits rising to Rp9.85
trillion from Rp7.6 trillion, the data show.
The amount of third party funds held by the banks also rose to
Rp10.05 trillion from Rp9.15 trillion , the newspaper Bisnis
Indonesia said .
The assets of the bank, which offers credits mainly to small
businesses, grew to Rp12.86 trillion by the end of last year
from Rp11.9 trillion a year earlier.
Indonesia's Perhutani Seeking Permission To Export Teak
JAKARTA, March 23 Asia pulse - Indonesia's state-owned forestry
company Perhutani has called on the government to allow it to
export teak logs in order to contribute Rp750 billion (US$64.5
million) to the state, its acting president director, Upik
Rosalina Wasrin, said.
The Perhutani acting president director said here on Friday that
her company wanted to export teak logs of the 'fancy' type in
order to contribute Rp750 billion to the state but the
government still banned the export of teak logs.
She said that the export of certain type of teak logs would
increase the income of Perhutani by up to Rp3 trillion.
Upik said that it was reasonable to open export for teak logs of
the fancy specification because the price of this type in the
world market was high.
She said that fancy teak logs were sold at Rp20 million per cu.m
overseas which were much higher than the local price at Rp9-10
million per cu.m.
Upik said that Perhutani's teak wood production reached 250,000
cubic meters per annum. Of the production, about 35,000 cubic
meters were of the fancy quality.
"Last year, there were about 5,000 cubic meters which were not
absorbed by the domestic market because the price of this type
was expensive," she said.
Indonesia To Replace Chemical Fertilizers With Organic Ones
JAKARTA, March 23 Asia Pulse - The Indonesian government will
soon replace 50 per cent of chemical fertilizers with organic
fertilizers for food crops, Agriculture Minister Anton
The farmlands have been less fertile as a result of long use of
chemical fertilizers, Anton told farmers in Bone, South Sulawesi.
Every year larger supply of fertilizers are needed to make up
for the loss in fertility caused by chemical fertilizers, he
said without giving more details about the plan.
He said the plan will also open more jobs in rural areas as
production of organic fertilizers will be produced by the
Indonesia still is dependent on imports for most of its chemical
fertilizer requirement like KCl, ZA, he was quoted as saying by
the newspaper Bisnis Indonesia.
Indonesian Govt Optimistic To Achieve Rice Production Target
JAKARTA, March 23 Asia Pulse - The Indonesian government said it
is optimistic the country will achieve rice production target of
63.5 million in dry unhulled rice this year.
Agriculture Minister Anton Apriyantono said the climate in
favorable in the Oct.. 2008-March, 2009 season and the harvest
area is larger.
Earlier the Central Bureau of Statistics predicted the
production will reach only 60 million tons.
Anton said the agency predicted not on the reality in the fields
, but more on the trend of annual production in the last 20
Data at the food crop directorate general show harvest areas
this year totaled 12.42 million hectares, up 1.22 per cent from
last year, the newspaper Bisnis Indonesia said.
The country regained self sufficiency in rice supply last year
and plans to export 100,000 tons of its surplus of hulled rice
Construction Of Indonesian DDT Project To Start This Year
JAKARTA, March 23 Asia Pulse - The Indonesian government hopes
to finish in June the process of clearing lands for
double-double track (DDT)
between Jakarta's Manggarai railway station and Cikarang in West
Head of the working unit of the DTT project Widodo said the
lands to be cleared total 1.7 hectares all in Jakarta .
There are a number of factors hampering the process of land
clearing including incomplete land certificate and compensation
to be paid for lands belonging to the Jakarta city
The transport ministry has set aside Rp30 billion (US$2550) to
finance the land clearing, Widodo was quoted as saying by the
newspaper Bisnis Indonesia.
The project to cost around 58.6 billion yens will be financed by
Japan International Cooperation Agency .
The transport ministry said construction of the project will
start this year after being delayed for six years.