India's TVS makes Indonesia production base in SE Asia Indian motorcycle producer TVS Motor Company has vowed to make Indonesia as its production base in Southeast Asia, with production set to begin in early 2007, a local newspaper reported Tuesday. Having invested 43 million U.S. dollars to build a factory in Indonesia, TVS aims to sell mostly moped models from its local factory, whose production capacity is estimated at 300,000 units a year, reported Bisnis Indonesia .

BI: Foreign or Local Banks May Acquire Small Banks Tuesday, 03 October, 2006 | 15:12 WIB TEMPO Interactive, Jakarta: Bank Indonesia will not discriminate against local or foreign bankers in terms of buying small banks. “We can’t make a difference between (foreign or local banks). There aren’t any rules for that. I’m afraid that if we make a difference, it could later disrupt stability,” said Ahmad Rizal, Director of Bank Indonesia (BI) Directorate of Licenses and Information.

Public Can Own Mining Stocks Tuesday, 03 October, 2006 | 16:44 WIB TEMPO Interactive, Jakarta: The government is exploring the plan of selling the shares of Indonesian Resources Company to the public. Roes Aryawijaya, Deputy State Enterprises Minister, explained the government will combine share ownership (65 percent each) at the state mining company, including PT Tambang Batubara Bukit Asam, PT Timah and PT Aneka Tambang, into the Indonesian Resource Company.

Banks ready to disburse Yogyakarta reconstruction fund Yogyakarta (ANTARA News) - Some banks in Yogyakarta special province were ready to channel the first batch of reconstruction program fund to Seloharjo village in Pundong subdistrict in Bantul district which was severely hit by earthquake last May 27, an official said.

It's time for Indonesia to focus on the economy A'an Suryana, College Park, Maryland Vice President Jusuf Kalla shared good news about the country with the American public during his recent visit to the United States: Indonesia, which was once beleaguered by economic and political crises, is now recovering and back on the right track.

Gap, Banana Republic stores to open in Indonesia Singapore (ANTARA News) - Singapore's FJ Benjamin, a franchise partner of US specialty retailer Gap Inc, said Tuesday it plans to open 15 Gap, BabyGap and GapKids stores and five Banana Republic stores in Indonesia by 2011. The company said in a statement that the first Gap and Banana Republic stores will open in Jakarta in March next year, followed by the remainder opening in Surabaya, Bandung and on the resort island of Bali before 2011.

Indonesian construction shares up on hopes of more contracts Jakarta (ANTARA News) - Construction companies' shares were higher in mid morning trade as investors expect a pickup in contracts in the fourth quarter given the government's stated intention to speed up its infrastructure rollout plans in the final three months of the year, dealers said. The government's plans are expected to be detailed at an infrastructure summit, to be held on Nov 1-3, they said.

RI exports show record growth Andi Haswidi, The Jakarta Post, Jakarta High global demand for non-oil and gas commodities, including crude palm oil, coal and rubber, has once again helped the country's total exports reach a record growth level. The latest data from the Central Statistics Agency (BPS), released Monday, shows that the country's exports from January to August reached US$64.63 billion, 17.13 percent higher than they were in the same period last year.

3G smartphones pack in the features Zatni Arbi, Contributor, Jakarta The new 3G W-CDMA cellphone technology is now available in a growing number of areas throughout the world, including, after some waiting, Indonesia. But not everywhere in the country. Even in Jakarta, the place where it is expected most 3G users will be concentrated, services are still patchy. Nonetheless, the potential for growth has spurred handset vendors to rush to the market with 3G WCDMA products.

Gap expands F J Benjamin Holdings relationship to Indonesia SAN FRANCISCO (MarketWatch) -- Gap Inc. (GPS : The Gap, Inc.) Monday evening said it has expanded its relationship with F J Benjamin Holdings Ltd. to include Indonesia. Under the terms of an agreement, F J Benjamin Holdings will have the exclusive rights to bring Gap and Banana Republic-branded apparel and accessories to Indonesian markets. F J Benjamin intends to open about 20 retail locations in Indonesia by 2010.

Banking industry needs strong medicine: BI The Jakarta Post, Jakarta Complying with the Basel II international best banking practices on minimum capital requirements and risk management is the strong medicine the industry needs to take if the system is to gain soundness, the central bank says. Bank Indonesia said compliance would mean lenders might notice a short-term decline in capital adequacy ratios (CAR) and their ability to provide more loans.

Mobile-8 plans to sell 19.91 pct stake in IPO Jakarta (ANTARA News) - PT Mobile-8 Telecom, a CDMA-based mobile phone operator, said it plans to sell 3.9 bln shares or 19.91 pct of its enlarged capital through an initial public offering and has yet to fix the IPO price. The offer is slated for Nov 22-24. The shares will be listed on the Jakarta Stock Exchange on Nov 29.

Investors Anticipate Decrease in BI Rate Monday, 02 October, 2006 | 20:18 WIB TEMPO Interactive, Jakarta: Analysts are predicting that investors will focus on company shares that will gain positive impacts due to the planned decrease of the Bank Indonesia (BI) Rate The analysts are convinced that the central bank will once again lower its BI Rate by 50 base points to 10.75 percent by 5 October. The rate decrease will take place if the September inflation rate is still under control.

Govt should not worry about capital flight, says observer Jakarta (ANTARA News) - The Indonesian government should not worry about foreign capital flight as many factors in Inonesia were still attractive to foreign investors, an observer said. "Both local and foreign investors will not easily move their money to other countries because they certainly have many considerations before relocating their business to elsewehere," Standard Chartered Bank economic observer Fauzi Icshan said here Monday.

BPS; inflation in October to drop below two digits Jakarta (ANTARA News) - The Central Bureau of Statistics (BPS) predicts year-on-year inflation in October will drop below two digits after reaching 14.55 percent in September. "God willing, year-on-year inflation next month will be below ten percent unless there is no eventuality," BPS chief Rusman Heriawan said here on Monday.