Mindful of the strategic importance of the petrochemical sector, the Industry Ministry says it will prioritize the development of three large, integrated petrochemical clusters in East and West Java, and Kalimantan.
These areas have hosted a number of major petrochemical plants since the mid-1990s.
"Our focus will be on expanding the upstream sector to secure supplies to downstream industries," Benny Wahyudi, the ministry's director general of agro, forestry and chemical industries, said Wednesday.
"We aim to develop each cluster as an integrated industrial zone where all the necessary support industries will also be present," he said.
The development of the upstream industry has slowed in recent years, with many planned expansion projects delayed because of the economic crisis. Slower growth in the upstream sector has, in turn, led to supply shortages in downstream industries, such as plastics and synthetic fiber producers.
While the local annual demand for ethylene -- a major raw material in plastic production -- stands at 1.3 million tons, the nation's sole ethylene producer, PT Chandra Asri Petrochemical Center, only has the capacity to supply 520,000 tons.
Petrochemical firms forecast that domestic demand for their products is set to grow by at least 10 percent annually.
With a population of 220 million, Indonesia represents a lucrative market for downstream petrochemical products, including polymers and fibers.
The government also says that a delayed aromatic products project in Tuban, East Java, is set to restart. The company, PT Trans Pasific Petrochemical Indotama, will commence operations in June 2006 and produce up to 1.06 million tons of aromatic products, such as paraxylene, benzene, toluene, orthoxylene, per annum.
In addition, it will also produce up to 1.06 million tons per annum of light naphtha, an important raw material for ethylene.
The development of the project, which is owned by Tuban Petrochemical Pte., Japan's Nissho Iwai and Itochu Corp and Tirtamas Majutama, was put on the back burner in 1998 as a result of the economic crisis. The Japan Bank for International Cooperation has provided financial support of US$400 million for the restart of the project.
Elsewhere, Indonesian Plastics Producers Association (Inaplast) chairman Didik Suwondo said the East Kalimantan petrochemical cluster should be developed as a natural gas-based production center for ethylene.
Didik explained that the price of gas-based ethylene would be 30 percent cheaper than that made from light naphtha.
"If we could develop more gas-based ethylene crackers, the downstream industries would benefit from more competitive prices," he said.
Source:
The Jakarta Post, Jakarta
Wednesday, February 08, 2006
Law Must Be Enforced in Settling Debtors Problems
Jakarta - The government has to look into the legal aspects in handling debtors of Bank Indonesia (BI)`s non-performing liquidity credits (BLBI), former chief the State Audit Board (BPK), Satrio B. Joedono said here on Wednesday."The question is whether the money or the law is important. For me, the law is important," Joedono said referring to reports that four debtors had plans to return the non-performing credits to the government.Reports quoted the finance minister as saying earlier that there were four BLBI debtors who wanted to return the money to the government.
The finance minister said she would discuss with the chief economic minister and the police chief the legal aspect that could be imposed on settling the debtors problem. Joedono said BLBI debtors had been given a chance to settle their debts through the Master of Settlement and Acquisition Agreement (MSAA).With the MSAA settlement, the debtors agreed to return the money but they failed to do so, he said.With the MSAA mechanism, debtors who had signed the agreement were given the `release and discharge` facility, whereby debtors would be freed from legal findings if they returned all amount of the credits they had received from BI, the central bank.
Earlier on Monday, three debtors came to the state palace to meet President Yudhoyono. The three were Lukman Astanto, Ulung Bursa and James Januar who respectively owed the government Rp615 billion, Rp190 billion and Rp123 billion.According to National Police chief Gen. Sutanto, they came to the state palace to follow the steps of Bank Bira`s commissioner Atang Latief who has earlier expressed readiness to return the BLBI funds to the government.Latief has been in hiding in Singapore along with many other debtors.
The government provided BLBI funds totaling Rp144.5 trillion from August 1998 to early 1999 to assist 48 ailing private banks. However, in May 1999, a Supreme Audit Agency report revealed that 95 percent of the troubled banks had misappropriated the funds.Based on reports, the Police Chief said, the debtors actually wanted to return their debts through the Indonesian Bank Restructuring Agency (IBRA) which was already liquidated.
"They wanted to return their debts, but don`t know to whom. So they issued a statement on their readiness to return their debts. In the absence of an institution to handle their debts, the settlement of their debts became protracted. Now they are able to solve their case," he said.Police Chief Gen Sutanto said on Tuesday that debtors who have surrendered themselves may not have to undergo a legal process, because according to law enforcers there was no indication they had violated the law although they had yet to secure a document stating they had paid their debts (SKL)."Their past and present status are not classified as having violated the law," Sutanto
Source:
ANTARA News
The finance minister said she would discuss with the chief economic minister and the police chief the legal aspect that could be imposed on settling the debtors problem. Joedono said BLBI debtors had been given a chance to settle their debts through the Master of Settlement and Acquisition Agreement (MSAA).With the MSAA settlement, the debtors agreed to return the money but they failed to do so, he said.With the MSAA mechanism, debtors who had signed the agreement were given the `release and discharge` facility, whereby debtors would be freed from legal findings if they returned all amount of the credits they had received from BI, the central bank.
Earlier on Monday, three debtors came to the state palace to meet President Yudhoyono. The three were Lukman Astanto, Ulung Bursa and James Januar who respectively owed the government Rp615 billion, Rp190 billion and Rp123 billion.According to National Police chief Gen. Sutanto, they came to the state palace to follow the steps of Bank Bira`s commissioner Atang Latief who has earlier expressed readiness to return the BLBI funds to the government.Latief has been in hiding in Singapore along with many other debtors.
The government provided BLBI funds totaling Rp144.5 trillion from August 1998 to early 1999 to assist 48 ailing private banks. However, in May 1999, a Supreme Audit Agency report revealed that 95 percent of the troubled banks had misappropriated the funds.Based on reports, the Police Chief said, the debtors actually wanted to return their debts through the Indonesian Bank Restructuring Agency (IBRA) which was already liquidated.
"They wanted to return their debts, but don`t know to whom. So they issued a statement on their readiness to return their debts. In the absence of an institution to handle their debts, the settlement of their debts became protracted. Now they are able to solve their case," he said.Police Chief Gen Sutanto said on Tuesday that debtors who have surrendered themselves may not have to undergo a legal process, because according to law enforcers there was no indication they had violated the law although they had yet to secure a document stating they had paid their debts (SKL)."Their past and present status are not classified as having violated the law," Sutanto
Source:
ANTARA News
Malaysian Company to Invest in Furniture in Indonesia
Jakarta - A Malaysian company, Bandar Development Berhard, would invest in furniture industry in Indonesia, said Indonesian Agriculture Minister Anton Apriantono here Wednesday.
Minister Apriantono and Industry Minister Fahmi Idris accompanied President Susilo Bambang Yudhoyono when receiving Bandar Development Berhard Chairman Dato Mohammad Muis and its share holder Dato Seri Akbar Khan at the presidential palace here Wednesday.
The minister encouraged the Malaysian company to invest in the furniture industry. However, the company has not yet given the amount of money to be invested in Indonesia. The talks with the President were not in detail, said the agriculture minister.
Source:
ANTARA News
Minister Apriantono and Industry Minister Fahmi Idris accompanied President Susilo Bambang Yudhoyono when receiving Bandar Development Berhard Chairman Dato Mohammad Muis and its share holder Dato Seri Akbar Khan at the presidential palace here Wednesday.
The minister encouraged the Malaysian company to invest in the furniture industry. However, the company has not yet given the amount of money to be invested in Indonesia. The talks with the President were not in detail, said the agriculture minister.
Source:
ANTARA News
Indonesian Ulema Council Asks Muslims to Accept Danish Media's Apology
Jakarta - The Indonesian Ulemas (Muslim Leader) Council MUI said here Wednesday that the Muslims must accept apology of Jyllands-Posten which first published the caricatures of Prophet Muhammad last year.
MUI, however, also asked the West, which always praises the freedom of press, no to violate religious norms and to respect everything which is considered sacred by religions.
"It is the obligation of the Muslims to accept the apology of the Danish media, the Danish ambassador to Indonesia, and the Danish Government, said Vice Chairman of MUI Din Syamsuddin following a meeting of religious leaders, the media and Indonesian Foreign Affairs Minister Hassan Wirajuda at the foreign affairs ministry s office.
Din, who is concurrently general chairman of Muhammadiyah, the country s second largest Muslim organization, said Islam teaches its followers noble deeds such as accepting apology and to be forgiving.
Jyllands-Posten and the Danish Government have expressed their regrets about the publication of the caricatures, following a series of demonstrations throughout the world, which some had ended violently.
Din asked the Muslims, especially those in Indonesia, not to be trapped in violence and anarchy in responding the blasphemy of Prophet Muhammad by Jyllands Posten, which has apologized for the publication of the caricatures.
I think they have already gotten the message of the demonstrations so far. If it is considered insufficient, the messages should be presented through effective channels, he said.
He said the reactions of the Muslim were normal, but it must not be violent which is forbidden in Islam and could damage the image of Islam, especially Indonesia, which has the world s largest Muslim population.
Din urged the Western media and countries to try to understand Islam in order to prevent a clash of civilization between Islam and the West.
Because if a similar incident will repeat in the future, and they do not understand Islam, I think it would promote radicalism in the Islamic world, including in Indonesia and it would be potential to cause a clash of civilization between Islam and the West. Of course we must avoid this, he said.
Danish newspaper Morgennavisen Jyllands Posten first published the caricatures in September 2005, and later picked up by a dozen publications across Europe.
Indonesian President Susilo Bambang Yudhoyono said recently the Indonesian government condemned the publication of caricatures of the Prophet Muhammad and he could understand the public`s strong protest against the publication.
"But as religious people, we should accept the apology conveyed by both the Danish government through its ambassador in Jakarta and the editorial staff of the newspaper," President Yudhoyono said.
The embassy of Denmark in Jakarta has informed the Indonesian foreign affairs ministry of its plan to temporarily close the office, while the Danish honorary consulate in Surabaya was closed indefinitely starting on Tuesday, following a series of demonstrations in a number of cities throughout Indonesia.
Source
ANTARA News
MUI, however, also asked the West, which always praises the freedom of press, no to violate religious norms and to respect everything which is considered sacred by religions.
"It is the obligation of the Muslims to accept the apology of the Danish media, the Danish ambassador to Indonesia, and the Danish Government, said Vice Chairman of MUI Din Syamsuddin following a meeting of religious leaders, the media and Indonesian Foreign Affairs Minister Hassan Wirajuda at the foreign affairs ministry s office.
Din, who is concurrently general chairman of Muhammadiyah, the country s second largest Muslim organization, said Islam teaches its followers noble deeds such as accepting apology and to be forgiving.
Jyllands-Posten and the Danish Government have expressed their regrets about the publication of the caricatures, following a series of demonstrations throughout the world, which some had ended violently.
Din asked the Muslims, especially those in Indonesia, not to be trapped in violence and anarchy in responding the blasphemy of Prophet Muhammad by Jyllands Posten, which has apologized for the publication of the caricatures.
I think they have already gotten the message of the demonstrations so far. If it is considered insufficient, the messages should be presented through effective channels, he said.
He said the reactions of the Muslim were normal, but it must not be violent which is forbidden in Islam and could damage the image of Islam, especially Indonesia, which has the world s largest Muslim population.
Din urged the Western media and countries to try to understand Islam in order to prevent a clash of civilization between Islam and the West.
Because if a similar incident will repeat in the future, and they do not understand Islam, I think it would promote radicalism in the Islamic world, including in Indonesia and it would be potential to cause a clash of civilization between Islam and the West. Of course we must avoid this, he said.
Danish newspaper Morgennavisen Jyllands Posten first published the caricatures in September 2005, and later picked up by a dozen publications across Europe.
Indonesian President Susilo Bambang Yudhoyono said recently the Indonesian government condemned the publication of caricatures of the Prophet Muhammad and he could understand the public`s strong protest against the publication.
"But as religious people, we should accept the apology conveyed by both the Danish government through its ambassador in Jakarta and the editorial staff of the newspaper," President Yudhoyono said.
The embassy of Denmark in Jakarta has informed the Indonesian foreign affairs ministry of its plan to temporarily close the office, while the Danish honorary consulate in Surabaya was closed indefinitely starting on Tuesday, following a series of demonstrations in a number of cities throughout Indonesia.
Source
ANTARA News
Police Intensifies Security Precaution for Foreign Consulates
Surabaya- Police have intensified security precautions at European and US consulates following widespread demonstrations over the publication of cartoons depicting Prophet Muhammad in a Danish newspaper which were later published in several other papers in Europe, a police spokesman said.
"The police personnel reinforcement is aimed at anticipating further demontrastions and at training newly recruited police personnel," Surabaya Police Chief Snr Commr Anang Iskandar said on the sidelines of security precautions during a demonstration of Hizbuttahrir Indonesia in front of the US consulate here on Wednesday.
He said further that as many as 900 police officers were dispatched to secure the US, German and Dutch consulates at Jalan dr Soetomo and Jl dr Wahidin here.
Earlier 400 to 500 police personnel were sent to secure the area and another 200 to secure the Danish honorary consulate at jalan Sambar.
"The force will be evaluated in accordance with the development of the situation," he added.
Police also set up a police line about 100 meters from the office buildings
"The police personnel reinforcement is aimed at anticipating further demontrastions and at training newly recruited police personnel," Surabaya Police Chief Snr Commr Anang Iskandar said on the sidelines of security precautions during a demonstration of Hizbuttahrir Indonesia in front of the US consulate here on Wednesday.
He said further that as many as 900 police officers were dispatched to secure the US, German and Dutch consulates at Jalan dr Soetomo and Jl dr Wahidin here.
Earlier 400 to 500 police personnel were sent to secure the area and another 200 to secure the Danish honorary consulate at jalan Sambar.
"The force will be evaluated in accordance with the development of the situation," he added.
Police also set up a police line about 100 meters from the office buildings
Source:
ANTARA News
Marubeni boosts stake in Indonesia's Astra group company
Kyodo News International (Tokyo) -- Marubeni Corp. said Wednesday it has boosted its stake in PT Surya Artha Nusantara Finance, a construction machinery financing firm of Indonesia's PT Astra International Tbk group, to 40 percent from 4.9 percent for 1 billion yen.
Expecting rapid growth in demand for construction machinery in Indonesia, the Japanese trading house said it aims to expand its financing business by strengthening its bond with the Astra group, which possess a wide retail network in the country.
Surya Artha issued new shares solely to Marubeni earlier this month for the stake hike. The Astra group holds the remaining 60 percent stake in the Jakarta-based company.
Marubeni said it has been engaged in exports of construction machinery by Japan's Komatsu Ltd. to the Astra group amid active infrastructure building in Indonesia.
Source:
Kyodo News International (Tokyo)
February 08, 2006
Expecting rapid growth in demand for construction machinery in Indonesia, the Japanese trading house said it aims to expand its financing business by strengthening its bond with the Astra group, which possess a wide retail network in the country.
Surya Artha issued new shares solely to Marubeni earlier this month for the stake hike. The Astra group holds the remaining 60 percent stake in the Jakarta-based company.
Marubeni said it has been engaged in exports of construction machinery by Japan's Komatsu Ltd. to the Astra group amid active infrastructure building in Indonesia.
Source:
Kyodo News International (Tokyo)
February 08, 2006
Freeport-McMoRan Copper & Gold Inc reports 4Q and 2005 results
CHEMICAL BUSINESS NEWSBASE - COMPANY REPORTS - CBNB
Freeport-McMoRan Copper & Gold Inc reported a net income of $463.2 M in 4Q ended Dec 2005 (net income of $212.5 M in 4Q ended Dec 2004). For year ended Dec 2005 net income of $934.6 M (net income of $156.8 M for year ended Dec 2004). PT Freeport Indonesia's (PT-FI), FCX's Indonesian mining unit, share of 4Q 2005 sales was a record 468.4 M pounds of copper and 1.1 M ounces of gold (419.2 M pounds of copper and 618,000 ounces of gold in 4Q 2004). PT-FI's share of 2005 sales totalled 1.46 bn pounds of copper and a record 2.8 M ounces of gold, (1 bn pounds of copper and 1.44 M ounces of gold for 2004). PT-FI's share of estimated recoverable reserves as of 31 Dec 2005 totalled 40.3 bn pounds of copper and 43.9 M ounces of gold. Mill throughput, which varies depending on ore types being processed, averaged 236,900 tons/day of ore in 4Q 2005 (229,800 tons of ore in 4Q 2004). Production from PT-FI's Deep Ore Zone (DOZ) underground mine averaged 41,800 tons/day of ore per day in 4Q 2005, representing 18% of mill throughput. PT-FI's share of annual sales in 2006 is expected to about 1.3 bn pounds of copper and 1.7 M ounces of gold, compared with previous estimates of 1.4 bn pounds of copper and 1.9 M ounces of gold, with the shortfall expected to be substantially recovered in 2007. The following tables are included: summary financial table of Freeport-McMoRan Copper & Gold Inc; share of sales of copper and gold; unit net cash (credits) costs; reserve additions, exploration and mine development activities for copper, gold and silver; selected operating data; consolidated statements of income (unaudited); consolidated statements of cash flows (unaudited); product revenues and production costs; cathode cash unit; consolidated financial statements; consolidated provision for income taxes; business segments; and condensed consolidated balance sheets data (unaudited) as of 31 Dec 2004 and 2005.
Sources:
Elsevier Engineering Information
Financial Times Information Limited
Asia Intelligence Wire
Freeport-McMoRan Copper & Gold Inc reported a net income of $463.2 M in 4Q ended Dec 2005 (net income of $212.5 M in 4Q ended Dec 2004). For year ended Dec 2005 net income of $934.6 M (net income of $156.8 M for year ended Dec 2004). PT Freeport Indonesia's (PT-FI), FCX's Indonesian mining unit, share of 4Q 2005 sales was a record 468.4 M pounds of copper and 1.1 M ounces of gold (419.2 M pounds of copper and 618,000 ounces of gold in 4Q 2004). PT-FI's share of 2005 sales totalled 1.46 bn pounds of copper and a record 2.8 M ounces of gold, (1 bn pounds of copper and 1.44 M ounces of gold for 2004). PT-FI's share of estimated recoverable reserves as of 31 Dec 2005 totalled 40.3 bn pounds of copper and 43.9 M ounces of gold. Mill throughput, which varies depending on ore types being processed, averaged 236,900 tons/day of ore in 4Q 2005 (229,800 tons of ore in 4Q 2004). Production from PT-FI's Deep Ore Zone (DOZ) underground mine averaged 41,800 tons/day of ore per day in 4Q 2005, representing 18% of mill throughput. PT-FI's share of annual sales in 2006 is expected to about 1.3 bn pounds of copper and 1.7 M ounces of gold, compared with previous estimates of 1.4 bn pounds of copper and 1.9 M ounces of gold, with the shortfall expected to be substantially recovered in 2007. The following tables are included: summary financial table of Freeport-McMoRan Copper & Gold Inc; share of sales of copper and gold; unit net cash (credits) costs; reserve additions, exploration and mine development activities for copper, gold and silver; selected operating data; consolidated statements of income (unaudited); consolidated statements of cash flows (unaudited); product revenues and production costs; cathode cash unit; consolidated financial statements; consolidated provision for income taxes; business segments; and condensed consolidated balance sheets data (unaudited) as of 31 Dec 2004 and 2005.
Sources:
Elsevier Engineering Information
Financial Times Information Limited
Asia Intelligence Wire
Ex-Smart exec joins Salim rival; PLDT's legal mess
MANILA STANDARD--The telecom executive who virtually created and made Smart Communications Inc. the premier mobile phone company in the Philippines is now in Indonesia. Anastacio "Boy" R. Martirez, former head of personal communications and mobile services division of Smart, has joined Indonesia's Sinar Mas Group, a company owned by the powerful Wijaya family.
The grapevine said Sinar Mas offered Martirez, popularly known in Smart as ARM, a $10 million package to head Mobile-8, an upstart mobile phone firm bought by the Wijaya family from PT Bimantara Citra, formerly owned and controlled by ex-president Suharto's son, Bambang Trihatmodjo. Sinar Mas offered the job to ARM long before he was fired in late November when he thought of wresting the Smart presidency from Napoleon "Polly" Nazareno.
The grapevine said the Sinar Mas offer was one key factor that emboldened ARM to openly challenge Polly and vie for the latter's post. ARM's plans at that time were not kept secret from key executives of Smart, including Polly and Manuel "Manny" Pangilinan, chairman of PLDT and popularly known as MVP.
It will be recalled that Polly and ARM, had differences in management style that was adversely effecting the programs and operations of the company. Polly, Smart's chief executive officer, gave instructions to ARM to implement certain marketing programs but ARM saw things differently and did not heed his chief's order. To make the story short, MVP realized that ARM had become more of a liability than an asset to the group and was left with no choice but to let go of the executive, one of his favorites in the company.
Indonesia connections
ARM may have lost the battle with Polly but he came out richer following a "golden handshake fee" of $4.5 million (P245 million) from Smart. ARM, in addition, had thought he had nothing to lose in his war with Polly because of the $10 million offer from Sinar Mas. He was also offered by MVP the top plum in Del Monte Pacific, which was eyed by the First Pacific group before it eventually lost to the tandem of San Miguel Corp. and Joselito "Butch" Campos.
The Sinar Mas job, meanwhile, has pitted ARM against his former boss, the Salim family, who owns the First Pacific group that, in turn, owns a quarter of Philippine Long Distance Telephone Co. (PLDT), Smart's parent company. Sinar Mas was once the second largest business group in Indonesia. It is involved in almost all areas of finance, from insurance and securities to company finance and compete directly with the interests of the Salim family.
Mobile-8 is 70.52 percent controlled by Simar Mas after acquiring it from publicly listed PT Bimantara Citra. The rest of the shares are divided among Bimantara subsidiary PT Centralindo Panca Sakti, with 9.54 percent, Asialink (8.5 percent), and a consortium of Qualcomm Inc. and Samsung Electronics of South Korea.
Dire implications
The Supreme Court (SC) decision declaring as "ill-gotten" a large block of PLDT shares owned by the late Don Ramon Cojuangco may have serious implications on all the common stocks of the telecom giant. Legal experts argued that if the SC rules with finality that those shares are indeed ill-gotten, the very PLDT shares which First Pacific currently holds could also be questioned.
"They could also be interpreted as part of the ill-gotten wealth of the Marcoses. The reason is that those contested shares and the PLDT shares currently held by First Pacific belongs to the same tree. These are the same shares, which the late businessman Ramon Cojuangco had acquired from American company GTE," a legal expert said.
"Who can stop a person, or interested party, to ask the court to declare relief that the PLDT shares of First Pacific are also tainted and part of the ill-gotten wealth of the Marcoses?"
The grapevine said certain interested parties and their lawyers are now planning this course of action.
Source:
Manila Standard.
February 08, 2006
The grapevine said Sinar Mas offered Martirez, popularly known in Smart as ARM, a $10 million package to head Mobile-8, an upstart mobile phone firm bought by the Wijaya family from PT Bimantara Citra, formerly owned and controlled by ex-president Suharto's son, Bambang Trihatmodjo. Sinar Mas offered the job to ARM long before he was fired in late November when he thought of wresting the Smart presidency from Napoleon "Polly" Nazareno.
The grapevine said the Sinar Mas offer was one key factor that emboldened ARM to openly challenge Polly and vie for the latter's post. ARM's plans at that time were not kept secret from key executives of Smart, including Polly and Manuel "Manny" Pangilinan, chairman of PLDT and popularly known as MVP.
It will be recalled that Polly and ARM, had differences in management style that was adversely effecting the programs and operations of the company. Polly, Smart's chief executive officer, gave instructions to ARM to implement certain marketing programs but ARM saw things differently and did not heed his chief's order. To make the story short, MVP realized that ARM had become more of a liability than an asset to the group and was left with no choice but to let go of the executive, one of his favorites in the company.
Indonesia connections
ARM may have lost the battle with Polly but he came out richer following a "golden handshake fee" of $4.5 million (P245 million) from Smart. ARM, in addition, had thought he had nothing to lose in his war with Polly because of the $10 million offer from Sinar Mas. He was also offered by MVP the top plum in Del Monte Pacific, which was eyed by the First Pacific group before it eventually lost to the tandem of San Miguel Corp. and Joselito "Butch" Campos.
The Sinar Mas job, meanwhile, has pitted ARM against his former boss, the Salim family, who owns the First Pacific group that, in turn, owns a quarter of Philippine Long Distance Telephone Co. (PLDT), Smart's parent company. Sinar Mas was once the second largest business group in Indonesia. It is involved in almost all areas of finance, from insurance and securities to company finance and compete directly with the interests of the Salim family.
Mobile-8 is 70.52 percent controlled by Simar Mas after acquiring it from publicly listed PT Bimantara Citra. The rest of the shares are divided among Bimantara subsidiary PT Centralindo Panca Sakti, with 9.54 percent, Asialink (8.5 percent), and a consortium of Qualcomm Inc. and Samsung Electronics of South Korea.
Dire implications
The Supreme Court (SC) decision declaring as "ill-gotten" a large block of PLDT shares owned by the late Don Ramon Cojuangco may have serious implications on all the common stocks of the telecom giant. Legal experts argued that if the SC rules with finality that those shares are indeed ill-gotten, the very PLDT shares which First Pacific currently holds could also be questioned.
"They could also be interpreted as part of the ill-gotten wealth of the Marcoses. The reason is that those contested shares and the PLDT shares currently held by First Pacific belongs to the same tree. These are the same shares, which the late businessman Ramon Cojuangco had acquired from American company GTE," a legal expert said.
"Who can stop a person, or interested party, to ask the court to declare relief that the PLDT shares of First Pacific are also tainted and part of the ill-gotten wealth of the Marcoses?"
The grapevine said certain interested parties and their lawyers are now planning this course of action.
Source:
Manila Standard.
February 08, 2006
Thai sugar premiums rose anticipated buying from Indonesia
NEW YORK, Feb 08, 2006 (Dow Jones Commodities News via Comtex) --The March world raw sugar contract was up 11 points at 18.28 cents a pound on the New York Board of Trade midway through Wednesday's session, erasing a 27-point drop to Tuesday's low.
Thai sugar premiums rose in the week ended Tuesday as sellers anticipated buying from Indonesia, Philippines and Taiwan. "Fresh demand is brewing and we are in a position to export," a Bangkok-based trader said. Buyers in Asia are returning to the market after the Lunar New Year holidays. On Tuesday, Thai raws for March-May shipment were offered at 0.80 cent/lb., free-on-board Bangkok, over the Nybot March contract, versus 0.75 cent a week ago.
Indonesian's Bulog is shopping for white sugar this week, traders said. Trading Corp. of Pakistan is looking for 50,000 tons of refined sugar on Feb. 16 for mid-March shipment. The Philippines needs to buy.
Funds exited March longs in the early slide but trade houses bought the March/May spread, providing support. March has stayed in Tuesday's range so far.
"We're occupied with the March roll and there's some positioning ahead of Friday's March options expiration," a desk trader here said. Funds are selling the March/May spread while trade houses buy the switch in their rollovers, he observed.
March is trading at a premium to May after the Mar/May spread settled at "even" on Tuesday. March has retreated from Friday's 24-year high of 19.73c.
Nybot March world sugar options expire Friday, and the March futures exit the board on Feb. 28.
Nybot March finds support at 17.90, 17.88, 17.85, 17.82 and 17.80 cents and faces resistance at 18.35-18.36, 18.38, 18.40, 18.42 and 18.45 cents. The March domestic (No. 14) contract expires Friday.
Source:
Susan Buchanan,
Dow Jones Newswires
Thai sugar premiums rose in the week ended Tuesday as sellers anticipated buying from Indonesia, Philippines and Taiwan. "Fresh demand is brewing and we are in a position to export," a Bangkok-based trader said. Buyers in Asia are returning to the market after the Lunar New Year holidays. On Tuesday, Thai raws for March-May shipment were offered at 0.80 cent/lb., free-on-board Bangkok, over the Nybot March contract, versus 0.75 cent a week ago.
Indonesian's Bulog is shopping for white sugar this week, traders said. Trading Corp. of Pakistan is looking for 50,000 tons of refined sugar on Feb. 16 for mid-March shipment. The Philippines needs to buy.
Funds exited March longs in the early slide but trade houses bought the March/May spread, providing support. March has stayed in Tuesday's range so far.
"We're occupied with the March roll and there's some positioning ahead of Friday's March options expiration," a desk trader here said. Funds are selling the March/May spread while trade houses buy the switch in their rollovers, he observed.
March is trading at a premium to May after the Mar/May spread settled at "even" on Tuesday. March has retreated from Friday's 24-year high of 19.73c.
Nybot March world sugar options expire Friday, and the March futures exit the board on Feb. 28.
Nybot March finds support at 17.90, 17.88, 17.85, 17.82 and 17.80 cents and faces resistance at 18.35-18.36, 18.38, 18.40, 18.42 and 18.45 cents. The March domestic (No. 14) contract expires Friday.
Source:
Susan Buchanan,
Dow Jones Newswires
Toyota predicting a shortfall mainly in Japan and Indonesia
THE BIRMINGHAM POST--Although Toyota lowered its sales volume forecast for the business year by 80,000 units to 7.95 million vehicles, predicting a shortfall mainly in Japan and Indonesia. Toyota has posted a 14 per cent rise in third quarter profits as overseas markets raced ahead and a weaker yen boosted the value of earnings.
Brisk demand for cars such as the Prius hybrid and cost-cutting efforts helped the company absorb extra spending on new and expanded manufacturing facilities around the world after three straight quarters of profit decline.
The investment has included a pounds 50 million spend to boost production at its Burnaston factory near Derby to 285,000 Avensis and Corolla vehicles per year. With key new models such as the Camry and Lexus LS saloons and the Tundra pickup truck to be rolled out in the lucrative US market soon, analysts expect further gains for Toyota as it closes the gap with General Motors, the world's top seller of cars.
Senior managing director Takeshi Suzuki said: "With these results, we managed to expand our profits through the first three quarters from the year-earlier period despite the big investment outlays to meet ballooning vehicle demand.
"The weaker yen helped, but all in all I think it was a commendable performance." Toyota, which the market values at pounds 106 billion - more than DaimlerChrysler, Honda, and Nissan Motor combined - had an operating profit of pounds 2.32 billion for October-December. Group revenues grew 15 per cent to pounds 25.9 billion as global sales volume rose 7.7 per cent to 1.98 million units.
Last year Toyota recorded its 14th consecutive year of growth in the UK with 138,536 cars and commercial vehicles sold here. Corolla (24,199), Verso (9,570) and Prius (3,749) all recorded their highest ever annual sales while Toyota's best selling model was the Yaris (33,981). Toyota's domestic rivals, Nissan and Honda, also reported better third-quarter earnings last week, helped by the yen's fall against the dollar, euro and other currencies.
Tough competition from Asian brands has sent core automotive operations of GM and Ford reeling under losses, forcing America's top two auto makers to call for massive job cuts and plant closures.
"The operating environment is good for Toyota right now," said Yoshihisa Okamo-to, a senior vice president at Fuji Investment Management, adding that the market focus would shift to the outlook for next business year.
"Toyota has been investing in production capacity and I think we can expect them to post solid growth. I think Toyota's stock will rise."
Toyota does not provide group-based profit forecasts but repeated its prediction that it would beat last year's record levels.
A consensus forecast of 22 brokerages puts Toyota's group operating profit at pounds 8.5 billion for the year ending in March, up 4.7 per cent from the last business year.
Heavy capital spending is expected to keep profit growth in check compared with revenue expansion.
Mr Suzuki was coy about spending plans for next year, saying that while it would not rise or fall significantly, high commodity prices meant investments could end up being more expensive.
For calendar 2006, Toyota now plans to make 9.06 million vehicles, up ten per cent from 2005, as the firm bids to replace General Motors as the world's largest automaker.
Source:
THE BIRMINGHAM POST
Brisk demand for cars such as the Prius hybrid and cost-cutting efforts helped the company absorb extra spending on new and expanded manufacturing facilities around the world after three straight quarters of profit decline.
The investment has included a pounds 50 million spend to boost production at its Burnaston factory near Derby to 285,000 Avensis and Corolla vehicles per year. With key new models such as the Camry and Lexus LS saloons and the Tundra pickup truck to be rolled out in the lucrative US market soon, analysts expect further gains for Toyota as it closes the gap with General Motors, the world's top seller of cars.
Senior managing director Takeshi Suzuki said: "With these results, we managed to expand our profits through the first three quarters from the year-earlier period despite the big investment outlays to meet ballooning vehicle demand.
"The weaker yen helped, but all in all I think it was a commendable performance." Toyota, which the market values at pounds 106 billion - more than DaimlerChrysler, Honda, and Nissan Motor combined - had an operating profit of pounds 2.32 billion for October-December. Group revenues grew 15 per cent to pounds 25.9 billion as global sales volume rose 7.7 per cent to 1.98 million units.
Last year Toyota recorded its 14th consecutive year of growth in the UK with 138,536 cars and commercial vehicles sold here. Corolla (24,199), Verso (9,570) and Prius (3,749) all recorded their highest ever annual sales while Toyota's best selling model was the Yaris (33,981). Toyota's domestic rivals, Nissan and Honda, also reported better third-quarter earnings last week, helped by the yen's fall against the dollar, euro and other currencies.
Tough competition from Asian brands has sent core automotive operations of GM and Ford reeling under losses, forcing America's top two auto makers to call for massive job cuts and plant closures.
"The operating environment is good for Toyota right now," said Yoshihisa Okamo-to, a senior vice president at Fuji Investment Management, adding that the market focus would shift to the outlook for next business year.
"Toyota has been investing in production capacity and I think we can expect them to post solid growth. I think Toyota's stock will rise."
Toyota does not provide group-based profit forecasts but repeated its prediction that it would beat last year's record levels.
A consensus forecast of 22 brokerages puts Toyota's group operating profit at pounds 8.5 billion for the year ending in March, up 4.7 per cent from the last business year.
Heavy capital spending is expected to keep profit growth in check compared with revenue expansion.
Mr Suzuki was coy about spending plans for next year, saying that while it would not rise or fall significantly, high commodity prices meant investments could end up being more expensive.
For calendar 2006, Toyota now plans to make 9.06 million vehicles, up ten per cent from 2005, as the firm bids to replace General Motors as the world's largest automaker.
Source:
THE BIRMINGHAM POST
Protracted uncertainty leaves ports high and dry
Indonesia looks set to remain dependent on port facilities in neighboring countries for the foreseeable future, with a lack of certainty in the legal and planning spheres having resulted in the halting of a number of major port development projects.
The government's promises to local and overseas investors during the Infrastructure Summit a year ago to immediately address the uncertainty problem in the investment arena to date remain nothing more than promises.
Projects involving the construction of a new port at Bojonegara, Banten, the expansion of Tanjung Priok Port in Jakarta and the expansion of Tanjung Perak Port in East Java were all introduced to investors during the summit, but to date remain firmly stuck on the drawing board.
Poor infrastructure planning coupled with disputes between the central and local governments over who gets to run the ports are currently the main causes of uncertainty in the port sector. Ironically, funding no longer seems to be a problem.
Poor planning is reflected by the recent instruction from the Transportation Ministry to put the first phase of the Bojonegara port project on hold due, despite the fact that a number of investors had expressed interest.
Transportation Minister Hatta Radjasa told The Jakarta Post in a recent interview that the project had to be halted by the government as a number of potential investors had made their involvement in the project contingent on a government guarantee that no similar port projects would be undertaken in the vicinity, except in the case of insufficient port capacity in the future.
The would-be investors included Singapore's PSA, Hong Kong's Hutchison Port Holdings, and Australia's P&O Ports. "The investors were concerned that the existence of similar ports in the vicinity would reduce the utilization of Bojonegara, and thus the feasibility of their investments. The government will need to study this problem further," said Hatta.
Although initial construction at Bojonegara was started in 2003, the ministry nevertheless permitted the Jakarta administration and state port operator PT Pelindo II to commence construction of the Jakarta New Port (JNP), part of the Tanjung Priok expansion program, in 2004.
The JNP is located about 150 kilometers east of Bojonegara. Meanwhile, about 50 kilometers west of Bojonegara, there are two other ports capable of providing international services -- Cigading Port, operated by state-owned steel producer PT Krakatau Steel, and Ciwandan Port, managed by Pelindo II.
"The aim of Bojonegara Port is to alleviate congestion at Tanjung Priok Port, and to provide direct-call services. The government wants to ensure that once completed, part of the containers from Jakarta will go to this port," said Hatta.
It remains far from clear why the Transportation Ministry did not anticipate this problem earlier, long before the project was offered to investors.
The fate of Bojonegoro Port will be decided by the Office of the Coordinating Minister for the Economy before the project is offered again during the upcoming second Infrastructure Summit in March.
The uncertainty has inflicted potential losses on Pelindo II, which is charged with operating Bojonegara Port, of around Rp 170 billion (US$18.2 million) arising out of land acquisition and the construction of a 300-meter berthing facility.
Four state firms, Pelindo I, II, III and IV, have a monopoly on the management of ports handling international traffic across the country. Any investor willing to build an international port must work together with the relevant Pelindo company.
Investment in the port sector is also suffering as a result of uncertainty arising out of disputes between the central and local administrations, with each claiming the right to manage ports.
The local administrations base their arguments on the Autonomy Law, which appears to run contrary to other legislation that gives the Pelindo companies the sole right to manage international ports in Indonesia.
The proposed expansion of Tanjung Perak Port into Lamong Bay in the eastern part of Surabaya, which was offered to investors last year, is a prime example of such a dispute.
The expansion, which is supported by the central government and Surabaya municipality, is opposed by the East Java administration, which insists that the new port be built on Madura island for environmental reasons.
There are no signs that the dispute will be resolved any time soon. As a result, the project remains firmly stalled.
Indonesia, Southeast Asia's largest economy, has long dreamt of having its own international-class seaports -- large enough to function as hub ports -- unlike the present situation in which most of the products shipped in or out of the nation have to be pooled first in much larger ports in Singapore and Malaysia.
This situation has not only made shipping costs more expensive, but has also made the country heavily dependent on foreign vessels, leaving the underdeveloped local shipping industry to stagnate.
The Transportation Ministry has estimated that 80 percent of the country's exports and imports go via Singapore or Malaysia, causing potential losses of more than US$2 billion per annum to local businesses.
The government says it is aware of the problem, but no concrete measures have been taken to date.
Indonesian National Shipowners Association (INSA) chairman Oentoro Surya said the business community was concerned about the protracted uncertainty surrounding port development, which hampered local shipping companies from expanding.
"What makes local players reluctant to go global is partly the fact that there are no ports that are able to handle direct shipments. The country's exporters are therefore at the mercy of port operators in Singapore and Malaysia," said Oentoro.
Source:
Rendi Akhmad Witular,
The Jakarta Post, Jakarta
The government's promises to local and overseas investors during the Infrastructure Summit a year ago to immediately address the uncertainty problem in the investment arena to date remain nothing more than promises.
Projects involving the construction of a new port at Bojonegara, Banten, the expansion of Tanjung Priok Port in Jakarta and the expansion of Tanjung Perak Port in East Java were all introduced to investors during the summit, but to date remain firmly stuck on the drawing board.
Poor infrastructure planning coupled with disputes between the central and local governments over who gets to run the ports are currently the main causes of uncertainty in the port sector. Ironically, funding no longer seems to be a problem.
Poor planning is reflected by the recent instruction from the Transportation Ministry to put the first phase of the Bojonegara port project on hold due, despite the fact that a number of investors had expressed interest.
Transportation Minister Hatta Radjasa told The Jakarta Post in a recent interview that the project had to be halted by the government as a number of potential investors had made their involvement in the project contingent on a government guarantee that no similar port projects would be undertaken in the vicinity, except in the case of insufficient port capacity in the future.
The would-be investors included Singapore's PSA, Hong Kong's Hutchison Port Holdings, and Australia's P&O Ports. "The investors were concerned that the existence of similar ports in the vicinity would reduce the utilization of Bojonegara, and thus the feasibility of their investments. The government will need to study this problem further," said Hatta.
Although initial construction at Bojonegara was started in 2003, the ministry nevertheless permitted the Jakarta administration and state port operator PT Pelindo II to commence construction of the Jakarta New Port (JNP), part of the Tanjung Priok expansion program, in 2004.
The JNP is located about 150 kilometers east of Bojonegara. Meanwhile, about 50 kilometers west of Bojonegara, there are two other ports capable of providing international services -- Cigading Port, operated by state-owned steel producer PT Krakatau Steel, and Ciwandan Port, managed by Pelindo II.
"The aim of Bojonegara Port is to alleviate congestion at Tanjung Priok Port, and to provide direct-call services. The government wants to ensure that once completed, part of the containers from Jakarta will go to this port," said Hatta.
It remains far from clear why the Transportation Ministry did not anticipate this problem earlier, long before the project was offered to investors.
The fate of Bojonegoro Port will be decided by the Office of the Coordinating Minister for the Economy before the project is offered again during the upcoming second Infrastructure Summit in March.
The uncertainty has inflicted potential losses on Pelindo II, which is charged with operating Bojonegara Port, of around Rp 170 billion (US$18.2 million) arising out of land acquisition and the construction of a 300-meter berthing facility.
Four state firms, Pelindo I, II, III and IV, have a monopoly on the management of ports handling international traffic across the country. Any investor willing to build an international port must work together with the relevant Pelindo company.
Investment in the port sector is also suffering as a result of uncertainty arising out of disputes between the central and local administrations, with each claiming the right to manage ports.
The local administrations base their arguments on the Autonomy Law, which appears to run contrary to other legislation that gives the Pelindo companies the sole right to manage international ports in Indonesia.
The proposed expansion of Tanjung Perak Port into Lamong Bay in the eastern part of Surabaya, which was offered to investors last year, is a prime example of such a dispute.
The expansion, which is supported by the central government and Surabaya municipality, is opposed by the East Java administration, which insists that the new port be built on Madura island for environmental reasons.
There are no signs that the dispute will be resolved any time soon. As a result, the project remains firmly stalled.
Indonesia, Southeast Asia's largest economy, has long dreamt of having its own international-class seaports -- large enough to function as hub ports -- unlike the present situation in which most of the products shipped in or out of the nation have to be pooled first in much larger ports in Singapore and Malaysia.
This situation has not only made shipping costs more expensive, but has also made the country heavily dependent on foreign vessels, leaving the underdeveloped local shipping industry to stagnate.
The Transportation Ministry has estimated that 80 percent of the country's exports and imports go via Singapore or Malaysia, causing potential losses of more than US$2 billion per annum to local businesses.
The government says it is aware of the problem, but no concrete measures have been taken to date.
Indonesian National Shipowners Association (INSA) chairman Oentoro Surya said the business community was concerned about the protracted uncertainty surrounding port development, which hampered local shipping companies from expanding.
"What makes local players reluctant to go global is partly the fact that there are no ports that are able to handle direct shipments. The country's exporters are therefore at the mercy of port operators in Singapore and Malaysia," said Oentoro.
Source:
Rendi Akhmad Witular,
The Jakarta Post, Jakarta
Government may review Freeport mining contract
The government will review the mining contract of PT Freeport Indonesia if the giant gold miner is found to have polluted the environment in Papua, according to Energy and Mineral Resources Minister Purnomo Yusgiantoro.
Purnomo said Tuesday an interdepartmental team would conduct a follow-up investigation based on a recent report from the Office of the State Minister for the Environment that the local unit of the world's biggest gold and copper miner, Freeport-McMoran Copper & Gold Inc., was responsible for serious pollution in and around its mining concession. Following the investigation, the team would make recommendations for further action.
"Before we review Freeport's mining contract, we will have to see whether it has actually violated any environmental regulations. Representatives of our inspectorate general will be members of the team ...," he told reporters.
He acknowledged that should the allegations of pollution be borne out, Freeport would be at risk of having its mining contract terminated.
Purnomo explained that mining companies in Indonesia would no longer be given special treatment to such an extent that outside ministries (other than the Energy and Mineral Resources Ministry) were prevented from investigating possible irregularities or abuses.
"The mining sector is now open to all ministries. For example, taxation problems will be handled by the Ministry of Finance while environmental issues will be addressed by the State Minister for the Environment. Our ministry will no longer involve itself in such issues," he said.
The Office of the State Minister for the Environment earlier said that Freeport had broken the country's environmental legislation by illegally dumping hazardous waste in the Otomina River, thereby endangering biodiversity and public health along the length of the river.
The Otomina River flows close by the Freeport mine in resource-rich Papua province. The ministry is currently investigating the pollution allegations against Freeport to obtain conclusive evidence before taking legal action.
Freeport, however, has denied the allegations, saying it has never violated any environmental regulations during its more than three decades of operations in the province.
Source:
Rendi Akhmad Witular,
The Jakarta Post, Jakarta
Purnomo said Tuesday an interdepartmental team would conduct a follow-up investigation based on a recent report from the Office of the State Minister for the Environment that the local unit of the world's biggest gold and copper miner, Freeport-McMoran Copper & Gold Inc., was responsible for serious pollution in and around its mining concession. Following the investigation, the team would make recommendations for further action.
"Before we review Freeport's mining contract, we will have to see whether it has actually violated any environmental regulations. Representatives of our inspectorate general will be members of the team ...," he told reporters.
He acknowledged that should the allegations of pollution be borne out, Freeport would be at risk of having its mining contract terminated.
Purnomo explained that mining companies in Indonesia would no longer be given special treatment to such an extent that outside ministries (other than the Energy and Mineral Resources Ministry) were prevented from investigating possible irregularities or abuses.
"The mining sector is now open to all ministries. For example, taxation problems will be handled by the Ministry of Finance while environmental issues will be addressed by the State Minister for the Environment. Our ministry will no longer involve itself in such issues," he said.
The Office of the State Minister for the Environment earlier said that Freeport had broken the country's environmental legislation by illegally dumping hazardous waste in the Otomina River, thereby endangering biodiversity and public health along the length of the river.
The Otomina River flows close by the Freeport mine in resource-rich Papua province. The ministry is currently investigating the pollution allegations against Freeport to obtain conclusive evidence before taking legal action.
Freeport, however, has denied the allegations, saying it has never violated any environmental regulations during its more than three decades of operations in the province.
Source:
Rendi Akhmad Witular,
The Jakarta Post, Jakarta
Astro Is Ready To Roll Across Asia
Step one for the Malaysian satellite-TV company: A push into Indonesia. Next stop, India?
For years, Astro PLC seemed to be overreaching with the name of its headquarters. After all, why should a monopoly satellite-TV company serving only Malaysia call its offices the "All Asia Broadcast Center"? Now, Astro is finally catching up to its ambitions. This spring the company will expand its TV operations outside its home turf, offering its own channels and foreign rebroadcasts such as CNN and Al-Jazeera to viewers in Indonesia. "Having built a strong domestic base, we are now beginning to roll out regionally," says David Butorac, Astro's chief operating officer.
The move comes just in time. In October, nine-year-old Astro's stranglehold on the Malaysian pay-TV market was broken when cable operator MiTV Corp. started broadcasting 41 channels in Kuala Lumpur. Soon, another cable rival called Fine TV plans to join the fray.
Astro, of course, has a big head start and will be tough to unseat. Part of billionaire Ananda Krishnan's empire -- which includes Malaysia's top cellular phone operator, Maxis Communications -- Astro has 1.8 million subscribers, or about a third of Malaysian households, up from 1 million customers in 2002. It also dominates radio, with nine stations that control 70% of Malaysia's radio advertising revenues. That adds up to big profits. Astro will post income of $59 million this year on sales of $561 million, and earnings of $91 million on revenues of $691 million in 2006, Macquarie Securities says.
Much of that will be spent in Indonesia.
In March, Astro sealed a joint venture with Jakarta-based Lippo Group to launch its satellite service there. Lippo owns Kabelvision, which offers cable in Jakarta and a handful of other cities. Together, the companies hope they can get much greater penetration with satellite, aiming to serve some 3 million households -- nearly 10% of all homes with TVs -- by 2010.
Indonesia, though, may be a battle.
The country is Asia's third most populous after China and India, but just 1.4% of Indonesian households with televisions subscribe to pay-TV, vs. 32% in China and 58% in India. That's great for Astro, of course, but it also makes the market appealing to rivals. The world's biggest pay-TV operator, Rupert Murdoch's News Corp., recently bought a 20% stake in Indonesia's Cakrawala Andalas, which has satellite and terrestrial TV operations.
Astro does have advantages over even a deep-pocketed rival such as News Corp. First, there's language: Indonesians and Malaysians mainly speak Bahasa, which should help Astro develop new shows more cheaply. Astro has programming tie-ups with Indian studios, which make shows for both Indian TV and Astro's Malaysian channels.
Content suppliers such as Walt Disney Co., Home Box Office, and others that have worked with Astro in Malaysia are ready to follow the company into Indonesia and elsewhere in the region. And Astro has a joint venture with Hong Kong's Yes TV to operate two 24-hour soccer channels with rights to games from top European clubs. "Astro is the most successful Asian pay-TV operator outside Japan and Korea," says Vivek Couto of Media Partners Asia, a Hong Kong consultancy.
After Indonesia, Astro wants to go deeper into the region. Although he won't say what countries might be next, Butorac expects non-Malaysian pay-TV operations to account for 40% of revenues within five years. "Our strategy is to be a regional cross-media player," he says.
Although he faces regulatory hurdles today -- few countries in Asia currently allow foreign-owned radio or pay-TV operations -- Butorac expects that to change in coming years. If it does, the company might just grow into its headquarters.
Source:
Assif Shameen,
BusinessWeek
For years, Astro PLC seemed to be overreaching with the name of its headquarters. After all, why should a monopoly satellite-TV company serving only Malaysia call its offices the "All Asia Broadcast Center"? Now, Astro is finally catching up to its ambitions. This spring the company will expand its TV operations outside its home turf, offering its own channels and foreign rebroadcasts such as CNN and Al-Jazeera to viewers in Indonesia. "Having built a strong domestic base, we are now beginning to roll out regionally," says David Butorac, Astro's chief operating officer.
The move comes just in time. In October, nine-year-old Astro's stranglehold on the Malaysian pay-TV market was broken when cable operator MiTV Corp. started broadcasting 41 channels in Kuala Lumpur. Soon, another cable rival called Fine TV plans to join the fray.
Astro, of course, has a big head start and will be tough to unseat. Part of billionaire Ananda Krishnan's empire -- which includes Malaysia's top cellular phone operator, Maxis Communications -- Astro has 1.8 million subscribers, or about a third of Malaysian households, up from 1 million customers in 2002. It also dominates radio, with nine stations that control 70% of Malaysia's radio advertising revenues. That adds up to big profits. Astro will post income of $59 million this year on sales of $561 million, and earnings of $91 million on revenues of $691 million in 2006, Macquarie Securities says.
Much of that will be spent in Indonesia.
In March, Astro sealed a joint venture with Jakarta-based Lippo Group to launch its satellite service there. Lippo owns Kabelvision, which offers cable in Jakarta and a handful of other cities. Together, the companies hope they can get much greater penetration with satellite, aiming to serve some 3 million households -- nearly 10% of all homes with TVs -- by 2010.
Indonesia, though, may be a battle.
The country is Asia's third most populous after China and India, but just 1.4% of Indonesian households with televisions subscribe to pay-TV, vs. 32% in China and 58% in India. That's great for Astro, of course, but it also makes the market appealing to rivals. The world's biggest pay-TV operator, Rupert Murdoch's News Corp., recently bought a 20% stake in Indonesia's Cakrawala Andalas, which has satellite and terrestrial TV operations.
Astro does have advantages over even a deep-pocketed rival such as News Corp. First, there's language: Indonesians and Malaysians mainly speak Bahasa, which should help Astro develop new shows more cheaply. Astro has programming tie-ups with Indian studios, which make shows for both Indian TV and Astro's Malaysian channels.
Content suppliers such as Walt Disney Co., Home Box Office, and others that have worked with Astro in Malaysia are ready to follow the company into Indonesia and elsewhere in the region. And Astro has a joint venture with Hong Kong's Yes TV to operate two 24-hour soccer channels with rights to games from top European clubs. "Astro is the most successful Asian pay-TV operator outside Japan and Korea," says Vivek Couto of Media Partners Asia, a Hong Kong consultancy.
After Indonesia, Astro wants to go deeper into the region. Although he won't say what countries might be next, Butorac expects non-Malaysian pay-TV operations to account for 40% of revenues within five years. "Our strategy is to be a regional cross-media player," he says.
Although he faces regulatory hurdles today -- few countries in Asia currently allow foreign-owned radio or pay-TV operations -- Butorac expects that to change in coming years. If it does, the company might just grow into its headquarters.
Source:
Assif Shameen,
BusinessWeek
AirAsia flew 97,484 people to Indonesia in December
KUALA LUMPUR: AirAsia Bhd, South-East Asia's biggest low-fare airline, said it carried 35% more passengers in December compared with a year earlier, as more people chose to fly for leisure and business in the region.
December traffic rose to 812,492, bolstered by a sevenfold growth in the number of people flying to Indonesia, where AirAsia began serving in December 2004, according to an e-mailed statement by the company. AirAsia said it flew 97,484 people to Indonesia in December.
The number of passengers flying to Malaysia rose to 514,161 in December, 19% higher than a year earlier, while the number of people flying to Thailand rose 27% to 200,847 in December from a year earlier, AirAsia said.
Demand for travel helped lift profit in the fiscal first quarter ended Sept 30, by 13% to RM11.8mil from a year earlier. Sales grew 50% to RM186.3mil. It expects to exceed annual profit in 2005.
AirAsia serves 57 destinations in Malaysia and six other Asian countries.
Source:
Bloomberg
February 8, 2006
December traffic rose to 812,492, bolstered by a sevenfold growth in the number of people flying to Indonesia, where AirAsia began serving in December 2004, according to an e-mailed statement by the company. AirAsia said it flew 97,484 people to Indonesia in December.
The number of passengers flying to Malaysia rose to 514,161 in December, 19% higher than a year earlier, while the number of people flying to Thailand rose 27% to 200,847 in December from a year earlier, AirAsia said.
Demand for travel helped lift profit in the fiscal first quarter ended Sept 30, by 13% to RM11.8mil from a year earlier. Sales grew 50% to RM186.3mil. It expects to exceed annual profit in 2005.
AirAsia serves 57 destinations in Malaysia and six other Asian countries.
Source:
Bloomberg
February 8, 2006
Bank account for maids
KUALA LUMPUR: More than 300,000 employers of domestic maids will soon have to open bank accounts in their maids' names and pay the salary into the accounts monthly.
With this, employers will not be allowed to hold the maids' salaries.
“There have been a lot of complaints by international agencies that employers were not paying foreign maids their wages,” Human Resources Minister Datuk Fong Chan Onn told The Star.
Source:
M.Krishnamoorthy & Siow Yuen Ching
The Star Malaysia
February 8, 2006
With this, employers will not be allowed to hold the maids' salaries.
“There have been a lot of complaints by international agencies that employers were not paying foreign maids their wages,” Human Resources Minister Datuk Fong Chan Onn told The Star.
It will cover all employers of foreign and local maids, he added.
Dr Fong said the rationale for the inclusion of the clause were:
- PROTECTION on payment of wages to maids;
- ELIMINATE instances of employers keeping their wages; and
- PREVENT cases of non-payment of wages.
“By making a clear-cut policy on this, domestic maids will be protected and they cannot claim that their wages were not paid,” he said.
The opening of bank accounts will be mandatory in the amendments proposed to the Employment Act, 1955, due to be tabled in Parliament next month.
The proposed clause under Section 57A, Wages of Domestic Servant, states:
“It will be mandatory for employers of a domestic servant to pay the wages of domestic servants into the domestic servant’s bank account.”
Currently, there is no stipulation in the Act requiring employers to pay their domestic servants' wages into a bank account. The Malaysian Foreign Workers Association president Datuk Raja Zulkepley Dahlan said some illegal agencies did not pay maids and this move would prevent such cases.
Malaysian Trades Union Congress (MTUC) secretary general G. Rajasekaran supported the proposed change and said that it was aimed at safeguarding the domestic maids.
“The bank account will ensure that the maid receives the money,” he added.
Bank officer Tan Chow Sin, 51, said he had been doing this since the time he first had a maid and was comfortable with the arrangement.
“She will feel secure as she will be able to see her hard-earned money safe in her account, while my wife and I can sleep peacefully knowing that she won't run away,” he said.
Professional services manager P. Seran who has employed maids for several years said that with the banks now open for five days, it would be cumbersome for working employers to open the account, and withdraw and transfer the cash.
“The current arrangement of us paying her cash is a convenient method and acceptable to the maid. It will be too much of a hassle for us to keep going to the bank to deposit and withdraw each time she wanted money from her savings.”
Another employer P. Guna Sundari said that they had opened a separate account under her husband’s name, and at the end of every month the maid is shown the savings account book when it is updated.
In Penang, Home Affairs Ministry secretary-general Tan Sri Aseh Che Mat said Malaysia and Indonesia have reached consensus on the terms of the long-delayed Memorandum of Understanding (MoU) on employment of maids from the republic.
The MoU, to be signed by May, will be the first official agreement between the two countries on Indonesian domestic workers' recruitment in Malaysia.
He said representatives from both countries have drawn up a proposed MoU during a two-day technical committee meeting in Penang which started on Monday.
Source:
M.Krishnamoorthy & Siow Yuen Ching
The Star Malaysia
February 8, 2006
Tucan secures loan deal for RI project
JAKARTA: PT Tucan Pumpco Services Indonesia has signed a US$4.5 million loan agreement with Overseas Private Investment Corporation to finance the company's oil well cementing and stimulation services across the country.
OPIC is a U.S. government agency promoting U.S. private investment in emerging markets.
"Our experience with challenging well environments in Venezuela will be relevant for many of the Indonesian fields, where we see operators beginning to undertake higher pressure, more acidic and deeper drilling programs," Francisco J. Gali Jr, president director of PT Tucan, said in a statement.
PT Tucan has already signed its first cementing contract for a project in Sumatra
Source:
The Jakarta Post
February 08, 2006
OPIC is a U.S. government agency promoting U.S. private investment in emerging markets.
"Our experience with challenging well environments in Venezuela will be relevant for many of the Indonesian fields, where we see operators beginning to undertake higher pressure, more acidic and deeper drilling programs," Francisco J. Gali Jr, president director of PT Tucan, said in a statement.
PT Tucan has already signed its first cementing contract for a project in Sumatra
Source:
The Jakarta Post
February 08, 2006
‘Garden of Eden’ found
SYDNEY: Australian and other scientists have found a 'Lost World' in a remote Indonesian mountain jungle, home to exotic new species of birds, butterflies, frogs and plants as well as mammals unafraid of humans despite being hunted to near extinction elsewhere.
“It’s as close to the Garden of Eden as you’re going to find on Earth,” said Bruce Beehler, co-leader of the US, Indonesian and Australian expedition to part of the cloud-shrouded Foja mountains in the province of Papua that covers the western half of New Guinea.
Indigenous peoples living near the Foja range, which rises to 2,200m, said they had never ventured into the trackless area of 3,000 sq km.
The team of 25 scientists took helicopters to boggy clearings in the pristine zone.
“We just scratched the surface,” Beehler said. “Anyone who goes there will come back with a mystery.”
Two long-beaked echidnas, the egg-laying species similar to those found in Australia, simply allowed scientists to pick them up and bring them back to their camp to be studied, he said.
The expedition found a new type of honeyeater bird with a bright orange patch on its face, known only to local people and the first new bird species documented on the island in over 60 years.
They also found more than 20 new species of frogs, four new species of butterflies and plants, including five new palms.
And they took the first photographs of Berlepsch’s six-wired bird of paradise, which appears in 19th century collections but whose home had previously been unknown.
The bird is named after six fine feathers about 10cm long on the head of the male which can be raised and shaken in courtship displays.
The expedition also took the first photographs of a golden-fronted bowerbird in front of a bower made of sticks, while he was hanging up blue forest berries to attract females.
It found a rare tree kangaroo, previously unsighted in Indonesia.
Beehler said the naturalists reckoned that there was likely to be a new species of kangaroo living in higher altitudes.
Papua, the scene of a decades-long separatist rebellion that has left an estimated 100,000 people dead, is one of Indonesia’s most remote provinces, geographically and politically, and access by foreigners is tightly restricted.
Sources:
Reuters & AP
Wednesday February 8, 2006
“It’s as close to the Garden of Eden as you’re going to find on Earth,” said Bruce Beehler, co-leader of the US, Indonesian and Australian expedition to part of the cloud-shrouded Foja mountains in the province of Papua that covers the western half of New Guinea.
Indigenous peoples living near the Foja range, which rises to 2,200m, said they had never ventured into the trackless area of 3,000 sq km.
The team of 25 scientists took helicopters to boggy clearings in the pristine zone.
“We just scratched the surface,” Beehler said. “Anyone who goes there will come back with a mystery.”
Two long-beaked echidnas, the egg-laying species similar to those found in Australia, simply allowed scientists to pick them up and bring them back to their camp to be studied, he said.
The expedition found a new type of honeyeater bird with a bright orange patch on its face, known only to local people and the first new bird species documented on the island in over 60 years.
They also found more than 20 new species of frogs, four new species of butterflies and plants, including five new palms.
And they took the first photographs of Berlepsch’s six-wired bird of paradise, which appears in 19th century collections but whose home had previously been unknown.
The bird is named after six fine feathers about 10cm long on the head of the male which can be raised and shaken in courtship displays.
The expedition also took the first photographs of a golden-fronted bowerbird in front of a bower made of sticks, while he was hanging up blue forest berries to attract females.
It found a rare tree kangaroo, previously unsighted in Indonesia.
Beehler said the naturalists reckoned that there was likely to be a new species of kangaroo living in higher altitudes.
Papua, the scene of a decades-long separatist rebellion that has left an estimated 100,000 people dead, is one of Indonesia’s most remote provinces, geographically and politically, and access by foreigners is tightly restricted.
Sources:
Reuters & AP
Wednesday February 8, 2006
BI keeps key interest rate unchanged
Upbeat that inflation will eventually subside over the course of the year, the central bank has left its key interest rate unchanged at 12.75 percent in a move that should help avert a further slowdown in economic growth.
"Macroeconomic stability has been maintained, relatively speaking, with inflation under control, the rupiah gaining strength, and the banking sector still performing quite satisfactorily -- all of which are as we expected," the Bank Indonesia Board of Governors said in a statement after their monthly meeting to assess the economy Tuesday.
The central bank kept its BI rate unchanged last month, hinting at the beginning of the end of its monetary tightening, which began last July, after consumer prices fell by 0.04 percent in December.
Following December's deflation, monthly inflation of 1.36 percent in January, however, stoked fears that the central bank might tighten its monetary policy once again by further raising the key interest rate. BI Governor Burhanuddin Abdullah had also said that the central bank still regarded inflationary pressures as high, despite the rupiah's recent strengthening against the U.S. dollar.
Analysts had, nevertheless, expected BI to continue tempering its monetary policy, given that inflation was being brought under control with the current interest rate. The government is expecting full-year inflation of 8 percent, with BI allowing a plus-minus range of 1 percent.
Mandiri Sekuritas chief economist Kahlil Rowter, who had forecast that BI would leave its rate unchanged, said the decision was also due to the fact that rupiah-denominated assets were now more attractive than dollar-denominated ones.
Given the current BI rate, the U.S. Federal Reserve rate of 4.5 percent, and their respective yields, Kahlil said the real interest rate differential between the rupiah and dollar assets was between 0.6 and 1 percent.
"This range is within BI's comfort zone and enough to attract investors. And with the rupiah recently gaining against the greenback, there is no need for BI to raise its rate," he said.
Despite continuing moderation in its monetary policy, BI has warned of various external and internal factors that could disrupt macroeconomic stability and economic growth over the coming months.
"Inflation has been contained, but there are still risks to the economy. Externally, there exists the risk of volatility in the prices of oil and other commodities, as well as a possible slowdown in the global economy," Burhanuddin told reporters after the board's meeting.
Meanwhile, adverse factors at home included the poor investment climate and defective taxation system, both of which were hampering growth in the real sector.
Source:
Urip Hudiono, The Jakarta Post, Jakarta
February 08, 2006
"Macroeconomic stability has been maintained, relatively speaking, with inflation under control, the rupiah gaining strength, and the banking sector still performing quite satisfactorily -- all of which are as we expected," the Bank Indonesia Board of Governors said in a statement after their monthly meeting to assess the economy Tuesday.
The central bank kept its BI rate unchanged last month, hinting at the beginning of the end of its monetary tightening, which began last July, after consumer prices fell by 0.04 percent in December.
Following December's deflation, monthly inflation of 1.36 percent in January, however, stoked fears that the central bank might tighten its monetary policy once again by further raising the key interest rate. BI Governor Burhanuddin Abdullah had also said that the central bank still regarded inflationary pressures as high, despite the rupiah's recent strengthening against the U.S. dollar.
Analysts had, nevertheless, expected BI to continue tempering its monetary policy, given that inflation was being brought under control with the current interest rate. The government is expecting full-year inflation of 8 percent, with BI allowing a plus-minus range of 1 percent.
Mandiri Sekuritas chief economist Kahlil Rowter, who had forecast that BI would leave its rate unchanged, said the decision was also due to the fact that rupiah-denominated assets were now more attractive than dollar-denominated ones.
Given the current BI rate, the U.S. Federal Reserve rate of 4.5 percent, and their respective yields, Kahlil said the real interest rate differential between the rupiah and dollar assets was between 0.6 and 1 percent.
"This range is within BI's comfort zone and enough to attract investors. And with the rupiah recently gaining against the greenback, there is no need for BI to raise its rate," he said.
Despite continuing moderation in its monetary policy, BI has warned of various external and internal factors that could disrupt macroeconomic stability and economic growth over the coming months.
"Inflation has been contained, but there are still risks to the economy. Externally, there exists the risk of volatility in the prices of oil and other commodities, as well as a possible slowdown in the global economy," Burhanuddin told reporters after the board's meeting.
Meanwhile, adverse factors at home included the poor investment climate and defective taxation system, both of which were hampering growth in the real sector.
Source:
Urip Hudiono, The Jakarta Post, Jakarta
February 08, 2006
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