PT Indosat, the country's second largest mobile phone operator, will increase its capital expenditure this year to US$1.2 billion from $1 billion as initially planned to further expand its networks and improve the quality of its services.

Despite its high population and large economic size, Indonesia is among the least attractive countries for foreign retailers to invest in, according to a survey conducted recently by management consulting firm A.T. Kearney. Speaking here Wednesday during a seminar on retailers' distribution, A.T. Kearney vice president John Kurtz said that Indonesia was not as attractive as India, Russia or China because of its tougher economic and political challenges.

The government looks set to develop Special Economic Zones (SEZs) in the Batam, Bintan and Karimun islands with Singapore, after issuing regulations relating to implementation of the SEZs earlier this week. Coordinating Minister for the Economy, Boediono, said officials from the two countries will meet in Bali on Aug. 29 to discuss progress of the SEZs and other pending issues.

More Indonesian companies are getting involved in greening projects to tap into the massive financial potential of the emerging global carbon trading business. As of this month, the government has approved 13 carbon trading projects, exceeding this year's target of 10 projects. According to one official, this success has all been thanks to increased public awareness of climate change. "We're seeing more companies with better awareness of the climate change issue.

JAKARTA (Antara): A large number of Australian companies were set to participate in next week's Australian Building Exhibition in Jakarta end of this month, highlighting the strong Australian interest in trade and investment opportunities in Indonesia, Australia's Ambassador to Indonesia Bill Farmer said in a press statement. He said that over 40 of Australia's major building and construction companies will attend OZBUILD EXPO 2007 on Aug.

Tokyo (ANTARA News/Asia Pulse) - Japan's Bridgestone Corp. (TSE:5108) unveiled plans Wednesday to expand production of car tyres in Asia amid low labour costs and growing local demand. The world's largest maker of tyres and industrial rubber products by sales value intends to spend 15.5 billion yen (US$134 million) to ramp up production by 50 per cent at its Karawang plant in Indonesia. The facility produces large tyres for use in automobiles and small trucks, mainly for export to the U.S.