Friday, March 6, 2009

Indonesia Business & Trade updates

10 Reports: (Courtesy Joyo News Group)

- Bk Indonesia: Looking At Possible FX Swap Deal With Australia

- Indonesia: To Issue Sukuk When Opportunity Presents-Official

- Indonesia says to import 100-150,000 tonnes sugar

- Indonesia's Humpuss Seeks $105 Mln In External Funds

- Indonesian Govt To Start Work In Massive Infrastructure

- Bank Negara Indonesia Pledges A $90 Mln Loan For Citra Borneo

- Indonesian Govt Favors FDI In Industrial Crop Forests :

- Indonesia's Lion Air To Phase Out Md Aircraft

- Al Baraka Still Keen On Expanding Operation In Indonesia

- Indonesian Govt Guarantees No Further Rise In Fertilizer
Prices In 2009


Bk Indonesia: Looking At Possible FX Swap Deal With Australia

JAKARTA, March 6 (Dow Jones)--Bank Indonesia is looking at the
possibility of entering a bilateral currency swap agreement with
Australia, Bank Indonesia Senior Deputy Governor Miranda Goeltom
said Friday.

However, Bank Indonesia hasn't discussed such a plan with its
Australian counterpart, Goeltom, said.

Recent economic uncertainty has prompted the central bank to
seek to boost the amount of foreign currency it can tap when
necessary to defend the rupiah.

It is currently finalizing negotiations to double the size of
its agreement with Japan to $12 billion.

Indonesia also has a $3 billion swap agreement with South Korea,
and a $3 billion deal with China.


Indonesia: To Issue Sukuk When Opportunity Presents-Official

JAKARTA, March 6 (Dow Jones)--The Indonesian government will
"soon" issue its first global sukuk bond when the opportunity
arises, the Director General of Government Debt Management
Rahmat Waluyanto said Friday.

Waluyanto said that the Islamic Development Bank has expressed
its interest to buy the planned bond.

Meanwhile, the sukuk director at the Finance Ministry, Dahlan
Siamat, said that the government has IDR7.9 trillion ($650
million) in assets it can use as the underlying assets for the
planned sukuk.

Siamat said that the size of the planned sukuk could be equal to
the value of the assets.

He said that the tenor of the bond will be five years, and it
will use the yield of the recently issued five-year medium-term
note as a benchmark.

Meanwhile, another government official, who declined to be
named, told Dow Jones Newswires that the government is in a
state of readiness to issue the sukuk.

"We will not do any marketing roadshow," the official said.


Indonesia says to import 100-150,000 tonnes sugar

JAKARTA, March 6 (Reuters) - Indonesia expects to import
100,000-150,000 tonnes of white sugar for household consumption
in the period up until April to meet demand, a trade ministry
official said on Friday.

"In the near future, it is very likely that we will need to
import sugar. A decree on imports will soon be issued by the
trade minister," said Subagyo, director general of domestic
trade at the ministry.

An official at the Indonesian Sugar Association told Reuters on
Thursday that nationwide sugar stocks fell to 400,000 tonnes at
the end of February, from 700,000 tonnes a month before.

Subagyo said the 400,000 tonnes stock should have been enough to
meet domestic demand until April but the fact prices kept rising
indicated that supply was not sufficient as traders were holding
onto stocks.

The Agriculture Ministry has predicted that industrywide white
sugar production for household use would reach 2.9 million
tonnes this year, exceeding nationwide consumption of the
sweetener, which is estimated at 2.76 million tonnes this year.

The government has also previously said that it would not allow
imports of white sugar for household consumption this year to
ease swelling stockpiles at home. [ID:nJKF000138] (Reporting by
Yayat Supriatna; Writing by Aloysius Bhui; Editing by Ed Davies)


Indonesia's Humpuss Seeks $105 Mln In External Funds

JAKARTA, March 6 Asia Pulse - Indonesian publicly traded sea
transport company PT Humpuss Intermoda Transportase (JSX:HITS)
said it is seeking external loan of US$105 million to help
finance its investment this year.

The company plans to spend US$150 million in capital expenditure
this year including for the purchases of a number of new barges
, company President Antonius W Sumarlin said.

The company will use external funds to cover 70 per cent of the
investment and will put up the remaining 30 per cent from its
internal cash, Sumarlin said.

Negotiations are in progress with a number of financers, he was
quoted as saying by the newspaper Investor Daily .


Indonesian Govt To Start Work In Massive Infrastructure Projects

JAKARTA, March 6 Asia Pulse - The Indonesian government is set
to make a big stride toward implementation of massive
infrastructure projects this year with the finance ministry to
disburse Rp12.2 trillion (US$1.02 billion) in stimulus in the
next two weeks.

Implementation of the projects would create many badly needed
jobs to cushion the impact of the global economic crisis, Chief
Economics Minister Sri Mulyani Indrawati said.

The Rp12.2 trillion fund is part of Rp73.3 trillion to be
provided by the government in economic stimulus this year.

Sri Mulyani said all government agencies are required to submit
their working plan budgets to the ministry next week and the
fund will be available in the following week.

The concrete results of the work is expected to be felt in May,
she was quoted as saying by the newspaper Investor Daily.


Bank Negara Indonesia Pledges A $90 Mln Loan For Citra Borneo

JAKARTA, March 6 Asia Pulse - PT Bank Negara Indonesia
(BNI)(JSX:BBNI) said it has pledged a loan of Rp10 trillion
(US$90 million) for plantation company Citra Borneo Indah (CBI)
of the Tanjung Lingga Group.

Gatoto M Suwondo, the president of the state lender, said half
of the loan commitment was already disbursed and the rest would
be made available by phases.

CBI has 70 hectares of land for oil palm plantations of which 42
hectares have been productive operated by three subsidiaries in
Central Kalimantan.

Gatot praised the company saying Lingga Group has created badly
needed jobs, earned foreign exchange and is committed to
preserving ecosystem.


Indonesian Govt Favors FDI In Industrial Crop Forests : Minister

JAKARTA, March 6 Asia Pulse - The Indonesian government will
accommodate the needs and facilitate the entry of prospective
foreign investment in industrial crop forests (HTIs) in the
country because such investments have bright prospects, Forestry
Minister MS Ka'ban said.

The minister made the statement after witnessing the signing of
an MoU by the Wana Nusantara Housing Cooperative (KPWN), PT
Korea Indonesia Forest Cooperation (KIFC), state forestry
company Perum Perhutani and the Korea Forest Service on a
project to develop 500 hectares of industrial crop forests in

He said the MoU, which was a followup to an agreement reached by
the Indonesian and South Korean governments previously, should
be implemented as soon as possible.

The minister said the development of each hectare of industrial
crop forest would take an investment of Rp12 million (US$996).

Ka'ban on the occasion also handed permits to utiilize the
yields of timber estates to two South Korean timber estate
companies, namely PT Taiyoung Engreen and PT Inni Joa.

Indonesia's and South Korea's forestry ministries recently
signed an agreement on the provision of 500,000 hectares of
forest area in Indonesia for the development of industrial crop

But Hadisusanto Pasaribu, an expert at Indonesia's forestry
ministry, said the total area of forest land South Korean
investors would like to develop as industrial crop forests was
actually 564,000 hectares.

Out of a number of South Korean companies that had applied for
permission to develop industrial forests in Indonesia, only two
had so far been given such permits covering a total concession
area of 60,000 hectares, Pasaribu said.

In the meantime, the forestry business division director of
Korindo Group, Kim Hoon, said the investment climate in
Indonesia, especially for forest-related business, had improved.


Indonesia's Lion Air To Phase Out Md Aircraft

JAKARTA, March 6 Asia Pulse - Lion Air said it will phase out
McDonnell Douglas aircraft from its fleet starting June 2006 to
be replaced with Boeing 737-900ER.

The country's largest private airline still has 18 units of MD
aircraft including 5 units of MD-90 and 13 units of MD-80.

Lion Air President Edward Sirait said the airline has received
18 of 178 units of Boeing 737-900ER its orders from the U.S.
aircraft maker.

Another two new aircraft will be delivered this month, Sirait
told the newspaper Investor Daily yesterday.

Replacement of MD aircraft could not be made at once as not all
airports in the country could accommodate wider bodied Boeing
aircraft, he said.


Al Baraka Still Keen On Expanding Operation In Indonesia

JAKARTA, March 6 Asia Pulse - Investors from Bahrain Al Baraka
Banking Group still want to buy banks in Indonesia but it has to
hold its ambition until the global financial storm recedes.

Al Baraka chief representative in Indonesia Nurul B. Djaafar
said the headquarters in Bahrain had said it was set to buy
banks to be converted into sharia banks in the predominantly
Muslim country.

Al Baraka is still interested in acquiring Bank Kesawan, a
publicly traded bank, which had been put earlier in its shopping
list, Nurul said.

Earlier, a Bank Indonesia official said Al Baraka Banking Group
decided to shelve plan for investment in Indonesia until the
third quarter of 2009.

Al Baraka is recalculating the plan to avoid repeating the same
investment mistake it has made in the United States and Europe,
sharia banking director Ramzi A Zuhdi said Al Baraka has
suffered heavily in its investment in the United States and
European banks as a result of the global financial crisis,.

Al Barakah earlier pledged to invest around US$5 billion in
various projects in the country including in sharia banking, and
trading investment.


Indonesian Govt Guarantees No Further Rise In Fertilizer Prices
In 2009

JAKARTA, March 6 Asia pulse - Indonesia's Agriculture Minister
Anto Apriantono reaffirmed the government had ensured that the
prices of fertilizers would not be changed this year.

"At least until the end of 2009, we guarantee there will be no
more increases in the price of fertilizers," Minister Anton said
after a meeting at the vice presidential office here on Thursday.

Chaired by Vice President Jusuf Kalla, the special meeting on
preparations for the planting season was attended by Minister
Anton, Industry Minister Fahmi Idris, Trade Minister Marie
Pangestu, Head of the National Logistic Agency Mustafa Abubakar
and the president directors of fertilizer producing companies in

According to Anton, there was no problem with the supply of
fertilizers during the planting season in 2009, as fertilizer
supplies are still adequate.

But the problem is the inequal distribution of fertilizers.

"In one year's planning on urea fertilizer, it has been
predicted that there would be a lack of supplies, which could be
overcome only by importing 500,000 tons of fertilizers," Anton

Furthermore, Anton said the fertilizer imports would be possible
if the national stock is less than 500,000 tons.


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