Tuesday, July 14, 2009
Business & Trade updates from Jakarta
- Salim Ivomas Mulls Issuing IDR1 Trillion Bonds - Report
- Foreign Banks Offer Indonesia Agribiz Astra Agro $150 Mln Loan
- Indonesia cuts max rupiah deposit rate, $ steady
- First Semester Of Indonesia's 2009 Deficit 0.2 Per Cent
- Table-Indonesia's Latest 2009 Economic Forecasts
- Manufacturing key sector for development: Minister
- Bankers have positive perception on Indonesia: central bank
- Forex Held By Indonesia's Bank Mandiri Up On Weak Credit Demand
- Yamaha Leads In Motorcycle Market In Indonesia
- Indonesia's GMM To Increase Local Content Of VW Car
- U.S. explores train revitalization project in Indonesia
- Sales Of Cement In Indonesia Down 9.7% On-Year
- Indonesia Aims To Increase Shoe Exports This Year
(Courtesy Joyo News Service)
Salim Ivomas Mulls Issuing IDR1 Trillion Bonds - Report
JAKARTA, July 14 (Dow Jones)--PT Salim Ivomas Pratama may issue
IDR1 trillion ($97.32 million) later this year if market
conditions improve, Bisnis Indonesia reported Tuesday.
The newspaper quoted Ivomas Chief Executive Mark Julian Wakeford
as saying that the proceeds will be used to repay company debt.
Salim Ivomas is a subsidiary of the Singapore-listed Indofood
Agri Resources Ltd. (5JS.SG)
Foreign Banks Offer Indonesia Agribiz Astra Agro $150 Mln Loan
JAKARTA, July 13 Asia Pulse - Indonesian agribusiness company PT
Astra Agro Lestari (JSX:AALI) has been offered a loan of US$150
million by five foreign banks.
The publicly traded company may use the funds from Bank of
Tokyo-Mitsubishi UFJ, Oversea-Chinese Banking Corp. Limited
(SGX:O39), Natixis Standard Chartered Bank and Sumitomo Mitsui
Banking Corp, to strengthen its capital expenditure this year.
Company spokesman Tjahyo Dwi Ariantono said the Astra Group
subsidiary planned to invest US$150 million this year to expand
its oil palm plantations and to build two palm oil processing
The company reported a 1.1 per cent increase in crude palm oil
production to 499,444 tons in the first six months of this year,
the newspaper Investor Daily said.
Indonesia cuts max rupiah deposit rate, $ steady
JAKARTA, July 13 (Reuters) - Indonesia's state-owned deposit
insurance corporation (LPS) has cut its maximum guaranteed
rupiah deposit rate to 7.25 percent from 7.5 percent, the agency
said on Monday.
But it kept the guaranteed dollar deposit rate unchanged at 2.75
percent. (Reporting by Dicky Kristanto; Editing by Sara Webb)
First Semester Of Indonesia's 2009 Deficit 0.2 Per Cent
JAKARTA, July 14 Asia pulse - The 2009 Indonesian State Budget
deficit in the first semester of 2009 reached Rp5.7 trillion
(US$558.6 million), which is 0.2 per cent of the Gross Domestic
Deputy Chairman of the Budget Committee Suharso Monoarfa told a
hearing between the House budget committee with the government
in Jakarta Monday night that the deficit was caused the quicker
provision of employee expanses and transfers to the regions to
maintain consumption growth.
The hearing was also attended by Finance Minister Sri Mulyani
Indrawati and Deputy Governor of Bank Indonesia (BI) Hartadi A.
Suharso said the state`s revenue and grants in the first
semester of 2009 reached Rp367.2 trillion, which is 43.3 per
cent of the stimulus document.
The state`s revenue came from tax receipts amounting to Rp288.5
trillion, or 43.6 per cent of the stimulus document.
"The tax receipts were affected by the slowing down economic
growth, the drop in the volume and value of imports, increase in
the price of oil, increase in excise rates, export duty on CPO,
and the taxation sunset policy," Suharso told the hearing
chaired by the House Budget Committee Emir Moeis.
In the meantime, the state`s non-tax revenue reached Rp78.5
trillion, or 42.2 per cent.
Meanwhile, state expenses in the first semester of 2009 reached
Rp372.9 trillion, or 37.7 per cent of the stimulus document.
The total consisted of expenses of ministries/institutions
Rp104.4 trillion, subsidy expenses Rp34.3 trillion, and
transfers to the regions Rp139.8 trillion.
The cover the deficit, expenses in the first semester of 2009
reached Rp47.8 trillion, consisting of the issuance of state
bonds reaching Rp69.2 trillion, or 126.1 per cent.
Table-Indonesia's Latest 2009 Economic Forecasts
JAKARTA, July 14 (Reuters) - Following are the latest forecasts
from the finance ministry for Indonesia's economy in 2009
approved by a parliamentary budget committee late on Monday.
latest f'cast previous f'cast
GDP growth (pct) in 2009 4.3 4.3
Year-end inflation rate (pct) 4.5 below 5.0
Average 3-mth SBI interest rate in H2 (pct) 6.47 6.5
Average rupiah exchange rate/dollar in 2009 10,500 10,600
Average rupiah exchange rate/dollar in H2 10,000 10,130
Average oil price per barrel, $ in 2009 61.0 61.0
Average oil price per barrel, $ in H2 70.0 70.0
Oil lifting (million barrels per day) in 2009 0.96 0.96
(Reporting by Andreas Ismar; Editing by Ed Davies)
The Jakarta Post [website]
Tuesday, July 14, 2009
Manufacturing key sector for development: Minister
Aditya Suharmoko, The Jakarta Post, Jakarta
The government will make manufacturing a key sector in designing
its 2010-2014 development plan to reduce poverty and
unemployment, a minister said Tuesday.
"The role of the manufacturing industry in development is very
important," State Minister for National Development Planning
Paskah Suzetta said in a statement.
"As of 2008, the manufacturing sector in the economy contributed
only 23 percent of GDP. In the future, the role of the
manufacturing industry should be enhanced," he said.
The manufacturing, agriculture and mining sectors are expected
to produce goods that can be sold on the global market, he added.
According to the National Development Planning Agency
(Bappenas), the growth of the manufacturing industry declined
from 4.62 percent in 2005 to 3.66 percent in 2008, despite
Indonesia’s need for labor-intensive industry.
Bankers have positive perception on Indonesia: central bank
JAKARTA, July 14 (Xinhua) -- Indonesian bankers have positive
perception on the country's credit and liquidity risks,
implicating to acceleration of decreasing interest rates, the
Kompas daily reported on Tuesday, quoting a survey by Bank
Indonesia in the second quarter this year, the central bank.
The survey showed the bankers had predicted that interest rates
of working capital would be at 11.64 percent in the end of 2009,
compared with 12.75 percent in the same survey conducted in the
first quarter, down 111 basis points.
Tony Prasentiantono, the head of economist in PT Bank BNI Tbk,
the third biggest government bank, said that there were many
factors that influenced business players, including bankers, to
be optimistic on the economy prospect.
He said that almost all economic indicators in the second
quarter were better compared to the previous one. The data of
inflation, economic growth and forex reserves kept showing
He also said that economic players got more optimism seeing the
secured and peaceful presidential election.
"The conditions will inspire all economic players to expand or
to invest," he said, adding that the momentum could start to
occur in the third quarter.
Indonesia's economic growth stood at 4.5 in the first quarter
and the Finance Ministry predicted that Indonesia would have a
growth rate of 4.4 percent this year.
Forex Held By Indonesia's Bank Mandiri Up On Weak Credit Demand
JAKARTA, July 14 Asia Pulse - Third party funds in foreign
exchange held by Indonesia's PT Bank Mandiri (JSX:BMRI), rose to
US$4.4 billion at present from US$400 million by the end of last
The increase in the amount of third party funds held by the bank
was more on weak demand for credits, Thomas Arifin, the bank
treasury and international banking director said.
Demand for foreign exchange credits has dwindled with the slump
in the country's international trade, Thomas said.
As a result , the loan to deposit ratio of the bank for foreign
exchange shrank to 64 per cent at present from 80 per cent early
this year, he added.
He said non performing credits in foreign exchange is relatively
low at less than 1 per cent net.
Yamaha Leads In Motorcycle Market In Indonesia
JAKARTA, July 14 Asia Pulse - Yamaha took lead in motorcycle
market in Indonesia in June putting behind Honda, which has
continued to be dominant in annual sales.
Sales of Yamaha motorcycle totaled 218,614 units in June
slightly ahead of Honda's 216,876 units followed by Suzuki far
behind with sales at 42,425 units, the association of motorcycle
Growing demand for its automatic scooters contributed to strong
performance of Yamaha in the domestic market, the association
Honda producer PT Astra Honda Motor said it is set to regain the
market lead by increasing its production of automatic scooters.
Indonesia's GMM To Increase Local Content Of Vw Car
JAKARTA, July 14 Asia Pulse - PT Garuda Mataram Motor (GMM) the
sole agent of Volkswagen (VW) in Indonesia said it will increase
the local content for its multi purpose vehicle (MPV), VW Touran.
By using higher local content the family sports car, the first
product VW car assembled in the country, could be sold 20 per
cent cheaper than its present price of Rp400 million (US$40,000)
Jonas Chendana, the sales manager of GMM said price adjustment
could be made if the rupiah value is against euro and the US
dollar is stable.
Jonas said the company hopes to be able to cut the selling price
in 2010 when the rupiah stability is expected to be stronger.
This year the company hopes to sell at least 100 units of VW
Touran, which was first launched in the country in May.
U.S. explores train revitalization project in Indonesia
JAKARTA, July 14 (Xinhua) -- The government of the United States
of America (USA) is exploring chances to involve in the
revitalization program of Indonesian trains which needs funding
of around 200 trillion rupiah (around 20 billion U.S. dollars)
from 2010 to 2020, the Bisnis Indonesia daily quoted an official
as saying on Tuesday.
The Transportation Ministry's Director General for Trains
Tundjung Inderawan said that the U.S. Ambassador to Indonesia
Cameron Hume has invited him to discuss programs that should be
carried out during the revitalization.
"I still don't know what it will be about precisely. The
ambassador only wants to talk about train revitalization," he
Tundjung also said that a U.S. company, General Electric (GE)
Transportation, would strengthen its penetration in the country
by providing locomotives.
"One of the loan proposals for project from the GE
Transportation has not been processed. However it is in the blue
book of the National Development Planning Agency," he said,
referring to the list that included foreign loan or grant plans
for the middle-term.
The Chief Executive Officer of GE Transportation Lorenzo
Simonelli was scheduled to sign a memorandum of understanding
with PT Kereta Api, the government-run train company, this week
related to the purchase of 20 locomotive units and leasing of
100 new locomotive units worth 40 million dollars.
Sales Of Cement In Indonesia Down 9.7% On-Year
JAKARTA, July 13 Asia Pulse - Sales of cement in Indonesia
shrank 9.7 per cent in the first half of this year to 17.17
million tons, from the same period last year on weak demand.
High interest rate slowed implementation of the property and
infrastructure projects, the largest user of cement in the
country, the association of cement producers said.
The selling prices of cement remained high despite the weak
demand with rising prices of energy mainly coal, association
chairman Urip Timuryono said.
In June alone sales fell 16 per cent to three million tons
compared with the same month last year, Urip told he newspaper
Indonesia Aims To Increase Shoe Exports This Year JAKARTA,
July 14 Asia Pulse - Indonesian shoe makers set an export target
of US$2 billion this year or an increase of 6.98 per cent from
last year's exports of US$1.87 billion.
The purchasing power of consumers in the export destination
countries is improving, the association of Indonesian shoe
Association chairman Eddy Widjanarko predicted demand will grow
in the second half of this yea.
Widjanarko said seven new foreign companies have invested in
Indonesia's shoe making industry as they see improvement in the
In addition, Indonesia gains from the unfavorable business
climate in two major rival suppliers China and Vietnam, he said.
Economic stability in Indonesia also contributes to attracting
buyers from abroad, he added.