PT Timah may reduce tin output

The Jakarta Post Daily-October 23, 2008 Facing the credit crisis, PT Timah, the world’s second largest tin miner, would cut its production 6.3 percent due to the price drop in this commodity. Hence, Timah may produce only 45,000 metric tons this year. World tin price has dropped about 49% for the last six months.

Credit crunch may hit RI mining investment

The Jakarta Post Daily-October 23, 2008 Simon Felix Sembiring, senior advisor for finance and economy at Department of Energy and Mineral Resources, predicted that the mining industry would face difficulties in seeking financial resources for their expansion, particularly from the market and the bank. The global financial crisis has created the domestic market fluctuation and drying up of banking liquidity since many banks are presently treating carefully the credit flow.

Indover crisis could hit RI credit ratings

The Jakarta Post Daily-October 23, 2008 Although having less direct impact on the country’s financial sector, the possible collapse of Netherlands-based Indover Bank may affect negatively to the country’s sovereign and financial institution ratings. But the lawmakers are reluctant to provide any recommendation solving this problem. They think that cash injection to Indover would be too risky since it might never be fully recovered in the future.

Cipta Pertiwi releases shares of Charoen

The Koran Tempo Daily-October 23, 2008 PT Cipta Pertiwi sold its shares (55.34%) in PT Charoen Pokphand Tbk to PT Central Agromina worth Rp. 690,774 billion.

Indonesian animation industry just US$1 million

The Investor Daily-October 23, 2008 Bayu Wedha, country manager Autodesk Indonesia, and Deswara Adez Aulia, an animator estimated that the potency of entertainment industry in Indonesia is very large that comprises animation, games, film, and television. However, according to them, the industry can just realize as much as US$1 million during 2008. Bayu is optimistic that the industry would grow in line with the growth of animation software industry in the world.

Indonesian animation industry just US$1 million

The Investor Daily-October 23, 2008 Bayu Wedha, country manager Autodesk Indonesia, and Deswara Adez Aulia, an animator estimated that the potency of entertainment industry in Indonesia is very large that comprises animation, games, film, and television. However, according to them, the industry can just realize as much as US$1 million during 2008. Bayu is optimistic that the industry would grow in line with the growth of animation software industry in the world.

Illegal shoes import reaches US$ 150 million

The Investor Daily-October 23, 2008 Djimanto, a member of advisory council of Indonesian Shoes Association (Aprisindo), stated that Indonesian illegal shoes import reached US$150 million, or about 10 million pairs. The illegal shoes import comes mostly from China which is cheaper 30% than local products. He estimated that Indonesian footwear imports, including the illegal one, had reached US$900 million. This value is equal to 50% of total Indonesian footwear export which is US$1.8 billion.

25 US companies move their investment US$1 b to Indonesia

The Investor Daily-October 23, 2008 William Marmon, vice president US-ASEAN Business Council, stated that at least 25 US-based companies would move their investment to Indonesian in various sectors worth more than US$1 billion. He mentioned some companies such as AES Corporation (a power plant supplier) planning to develop more than 10 units of small size power plants worth US$800 million, Monsanto Company (a seeding company) planning to invest US$12 million, Guardian Industries (float glass factory) planning to set up new factory worth US$150 million.

Component export’s turnover dropped 25%

The Investor Daily-October 23, 2008 Januar F Rustandie, senior industry advisor Senada, predicted that the Indonesian automotive components export would drop 25% next year, from US$1.375 billion to US$1.16 billion. The weakening automotive market in some countries would be main factor influencing this sector. Januar further elaborated that automotive component exports during 2002-2007 indicated the positive performance with average growth 24% per year. In 2002, Indonesian export component only earned US$352 million, and it soared in 2007 becoming US$1.1 billion.

Semester I-2008, shrimps export of CP Prima soars 42.18%

The Investor Daily-October 23, 2008 PT Central Proteinprima Tbk earned as much as Rp. 3.68 trillion from the sales during semester I-2008, increasing 42.18% compared with semester I-2007 that was Rp. 2.59 trillion. Fajar I Reksoprodjo, corporate communication of the company, told that the updated shrimp processing technology had been the strong reason behind this progress. Regarding to the demand from USA, he commented that American people had their own lifestyle, particularly in term of health food. Hence, he isn’t worried about the decreasing demand from USA.

To rescue Indover needs Rp 7 trillion

The Investor Daily-October 23, 2008 The management Indover Bank reported yesterday that the bank had to pay the long-term debt worth US$67.5 million and EUR 18 million per October 6, 2008. The central bank and the lawmakers had met yesterday to discuss the solution, but there was no conclusion in the end of the meeting. Hence, they decided to continue the meeting on Thursday. The meeting calculated that as much as Rp. 7 trillion was needed to rescue Indover.

Rabobank ready to open 54 branches

The Investor Daily-October 23, 2008 After merging with Haga and Hagakita Bank, PT Rabobank International Indonesian (Rabobank) plans to open 54 branches for the next three years. According to Danny Hartono, president director of the bank, Rabobank currently has 94 branches in Indonesia and would focus on four pillars, which are small and medium business, consumer, corporate, and retail business.

Pelangi Indah to participate tender Rp. 260 billion

The Investor Daily-October 23, 2008 PT Pelangi Indah Canindo Tbk would participate in LPG tubes, size 3 kilogram, procurement offered by Pertamina worth Rp. 260 billion. Indah Rubianto, corporate secretary of the company, told that her company previously had won the same tender for 1,02 million units of tubes. Now, she further informed, the company has two factories which are located in Balaraja and Cimone respectively, with total production 400 thousand units per month.

Citatah obtains sales contract worth US$11.99 million

The Investor Daily-October 23, 2008 PT Citatah Tbk, a marble manufacturer, obtained contract as much as US$11.99 million for the period of 2008-2009, mostly from China, South Korea, USA, Malaysia, Vietnam, Taiwan, and European countries. As the largest marble manufacturer in Southeast Asia, Tiffany Johanes, corporate secretary of the company, told that Citatah would explore the new mine and enlarge the volume of production. In semester I-2008, Citatah experienced sales increase compared with semester I-2007, which was from Rp. 47.79 billion to Rp. 52.81 billion.

Sumalindo considers shares buyback

The Investor Daily-October 23, 2008 PT Sumalindo Lestari Jaya Tbk, a plywood producer, considered buying back its shares this year in order to anticipate the sales decline. Besides that way, Jaya David, vice managing director of Sumalindo, told that the company also tried enhancing its competitiveness in the market. Sumalindo would soon obtain another land concession as many as 16.000 hectares in East Kalimantan.

Credit Suisse seeks loan for Bakrie US$1 billion

The Investor Daily-October 23, 2008 In order to pay its debt worth US$1.2 billion, PT Bakrie & Brothers assigned Credit Suisse to seek new loan to pay the debt. Previously, the management of Bakrie planned to pay the debt by selling its assets, including its shares in PT Bumi Resources Tbk. But the unstable market has made them difficult to sell it immediately.

Construction 2008 would be slow

The Kompas Daily-October 23, 2008 Gapensi (Joint National Constructors) predicted that the price soar of construction materials, such as asphalt, cement, steel-iron, and wood would influence the construction projects implementation in 2008.

IDX failed-rated

The Kompas Daily-October 23, 2008 ND Murdani, chairman of Indonesian Security Investment Society, stated that Indonesia Stock Exchange (IDX) had lost the momentum to strengthen the bourse. According to him, while Shanghai index was increasing 3.65%, Singapore-Strait Times index was increasing 6.57%, Hong Kong-Hang Seng index was increasing 10.25% on October 13, 2008, Indonesia-IHSG only increased 0.7%.

Boss of Gold Manor becomes suspect

The Koran Tempo Daily-October 22, 2008 -Indonesian Police Headquarter established managing director of PT Gold Manor International Limited as a suspect in corruption allegation of crude oil procurement namely Zatapi. The police don’t mention the name but public media identifies the person as Schiller M Napitupulu. The contract was signed between Pertamina and Gold Manor worth US$54 million containing the procurement of Zatapi crude oil as many as 600.000 barrels. But, the transaction triggered curiosity because the purchase had been conducted before examining the oil quality.

USA aborts 80% furniture export contracts

The Investor Daily-October 22, 2008 -Ambar Tjahjono, chairman of Indonesian Furniture Association (Asmindo), stated that the US importers had aborted 80% of purchasing contracts for furniture products from Indonesia that has already been signed. Ambar admitted that USA had been the largest market for Indonesian furniture products worth US$900 million per year or about 40.9% out of total export, and then it was followed by EU worth US$800 million or about 36.4% out of total export.