certainly the statistics are trending upwards across the board for the indonesian economy. of course, extrapolating future prospects for the economy from these figures is always problematic for a country like indonesia, where political stablity is tenuous and "natural" disasters endemic. i really don't know who are taking up these bonds. certainly banks would be first in line.

Jakarta (ANTARA News/Asia Pulse) - PT Bukit Kapur Reksa, a subsidiary of Wilmar Energy, is building the country's largest biodiesel factory in the Pelintung Industrial Estate in Dumai, in Riau. The factory will need one million tons of crude palm oil (CPO) as raw material, an official of the Riau Plantation Office said. He said construction of the factory started in December 2006 and was expected to be completed and start operation in May this year.

The recent flooding in the capital and surrounding areas is taking a toll on the economy, arousing negative sentiment on the country's financial markets and likely to cause a spike in this month's inflation. Many business sectors, the banking sector in particular, have been badly affected, with the floodwaters knocking out communications and transportation lines, and forcing power shutdowns in many parts of Greater Jakarta.

Those stats look good (gdp growth, single digit inflation rate, rise in export), however, the bondrating of BB medium--high risk rating? anyone knows who buy these bonds? mostly foreigners, Japanese, Singaporean? Auction on these bonds or tightly distributed (only offered to select people--the investment bankers)? Kuku, interesting article.

The coal sector needs foreign investment to expand its operations and a boost could come if new licensing regulations and other measures are approved, according to the head of the country's coal association. Investors are needed if Indonesia is to maintain output growth, Dow Jones Newswires quoted Jeffrey Mulyono, chairman of the Indonesian Coal Mining Association, as saying.

Banks should lower their lending rates in line with the reduction of the benchmark interest rate by the central bank to boost investment, President Susilo Bambang Yudhoyono said. “Investors and the business community consider that the interest rates in our country are still too high,” Dr. Yudhoyono said in his state-of-the-nation speech, broadcast on Wednesday (31/1/07) night.

State-owned trading firm, PT Rajawali Nusantara Indonesia (RNI), said on Wednesday it is planning to build two ethanol factories with a total capacity of 200,000 liters a day to tap growing demand. The company will build one ethanol factory in Cirebon, Central Java and another in Malang, East Java, each with a capacity of 100,000 liters a day, RNI's development director, Son Ramadir, said Wednesday (31/1/07).

State telecommunications company PT Telkom said Tuesday (30/1/07) it plans to invest Rp27.81 trillion ($3.1 billion) this year to develop its telecommunication businesses and services. The company said in a statement that 2007 capital expenditure is 34% larger than last year's Rp20.8 trillion, Dow Jones Newswires reported.

The government is forming a Forest Development Financing Company (BUPPH) that would finance the development of 5.4 million hectares of smallholders’ forests, using Rp9.7 trillion from the Reforestation Fund. "We discussed further steps toward the setting up of the BUPPH and they have been approved," Forestry Minister MS Ka'ban said after a meeting with Finance Minister Sri Mulyani Indrawati on Monday (29/1/07).

Telekom Malaysia Bhd (TM) is planning more investments in Indonesia and India this year, The Daily Star reported on Monday (29/1/07). As part of its new international investment plan, TM has adopted a two-pronged strategy to study new commercial opportunities in Asia and strengthen positions in existing markets.

A Chinese investor has shown interest in financing the planned construction of a bridge connecting Batam and Bintan islands, at an estimated cost of Rp3 trillion ($315.78 million). Riau Islands Governor Ismeth Abdullah told The Jakarta Post that China Railways Corp had visited the provincial administration, the Batam Industrial Development Authority and the legislative council to follow up its intention to fund the project.

Japan's No. 2 carmaker, Honda Motor Co, may boost investment in Indonesia. The world's second biggest carmaker by market value after Toyota Motor Corp, has so far invested $70 million in its Indonesian unit, but may spend more given the country's huge market potential, a senior executive for its Asian operations told Reuters on Wednesday (31/1/07). "Honda has always set up production facilities where the demand is available.

The government reduced its debt to 42% of gross domestic product in 2006 from 48% in 2005, President Susilo Bambang Yudhoyono said in a speech Wednesday (31/1/07). "We will continue to reduce the level to 35% this year," Dr. Yudhoyono said, according Dow Jones Newswires.

Indonesia's economy expanded 6.5% in the fourth quarter of 2006 from a year earlier on rising consumer spending, Bank Indonesia (BI) said Tuesday (30/1/07), according to Bloomberg News. It was the fastest growth since December 2004, the central bank said in a report published on its website. Growth was 5.5% in the third quarter. President Susilo Bambang Yudhoyono expects the $351 billion economy to expand more than 6% this year from 5.6% in 2006.

Indonesia began marketing an international bond on Friday (2/2/07), while Fitch and Moody’s ratings agencies revised its outlook for the country's foreign and local-currency rating to positive from stable. Fitch cited the government's commitment to maintaining economic stability and fiscal discipline, as well as its top-down policy push for structural changes, The Wall Street Journal reported.

President Susilo Bambang Yudhoyono on Wednesday (31/1/07) called on Indonesians to join the fight against rampant corruption. "I call on all the people of Indonesia not to be dizzied and not to be pessimistic about efforts to eradicate corruption," Dr. Yudhoyono said in his annual New Year speech.

Jakarta (ANTARA News) - Insurance claims for losses from floods that inundated Jakarta and nearly towns over the past four days could reach over 500 bln rupiah, an industry official said. "Judging from the size of the area that was inundated by the flood, I estimate that the total insurance claim could top 500 bln rupiah, or even more," the head of Indonesia's general insurance association Frans Sahusilawane told XFN-Asia.

Jakarta (ANTARA News) - State electricity firm PT PLN has been suffering a loss of Rp17 billion a day due to a temporary cut in power supply to around 1 million subscribers in flood-affected areas in Jakarta and environs since last Friday. "The losses are because PLN misses a chance of selling electrical power to around 1 million subscribers in Jakarta and environs," PLN President Director Eddie Widiono said on Monday.

Look around you. Words, pictures and sounds vying for your attention as you go to work every day. Many more when you get back home. While you may subconsciously witness a thousand messages in Metro Indonesia today, rural Indonesians maybe see a hundred. That's because the entire country is glued to television every day, billboards and banners are everywhere, and the radio is often on as "background music". Most of the messages vying for your attention are unsolicited.

In order to boost the farm sector, the government has lifted value-added tax (VAT) on a variety of goods and commodities, including agricultural machinery and primary agricultural products. Under a new government regulation, there are six categories of goods that will be exempted from VAT. These include capital goods, such as engines, factory machines and machine tools, both in knocked-down or built-up form, and feeds and feed ingredients for livestock, fowl and farmed fish.

To assist customers whose cars have been damaged by the worst Jakarta floods in living memory, carmakers and dealers are preparing special "repair packages", and will also extend workshop hours. "Based on our experiences in 2002, we are now preparing service packages for the repair of flood-damaged vehicles," said Jodjana Jody, sales general manager at Toyota Astra, the country's largest car producer.

International criticism of Indonesia's massive biofuel development program will not affect the project, which is expected to turn the country into one of the biggest biofuel producers in the world, says an official. The director of the Energy and Mineral Resources Ministry's research and development unit, Nenny Sri Utami, said in Jakarta on Monday that the plan to turn more than five million hectares over to growing the feedstock for the biofuel plants would go ahead as planned.

TEMPO Interactive, Jakarta: The Taxation Directorate General has started to increase the number of registered taxpayers. As a project pilot, the government has appointed Jakarta, where tax intensification will be specially aimed at individuals through a property-based approach. Darmin Nasution, Director General of Taxation at the Finance Department, said Jakarta was chosen because almost 70 percent of tax revenues come from this city.