Farmers burn palm oil fruit

JAKARTA (JP): Farmers involved in a nucleus-estate-and- smallholder project in Grogot, East Kalimantan are burning their palm oil fruit because the palm oil refinery of state-owned PT Perkebunan VI cannot accommodate their products.

F.X. Suadiyana, chief of the local plantation office, was quoted by Antara as saying in the East Kalimantan capital city of Samarinda on Tuesday that plantations in Grogot produce on average 50 tons per day because construction work on the company's second processing plant is lagging behind the originally scheduled completion date of last December.

He said the local administration has ordered the company to extend operations from 20 to 22 hours per day and to increase its processing from 20 to 40 tons per hour, so that it can accommodate the palm oil fruit produced by farmers. (riz)

Textile machinery showcase

JAKARTA (JP): More than 200 textile and garment machinery companies from 20 countries will take part in the third International Textile and Garment Machinery Exhibition.

The exhibition will be held from May 26 to May 30 at the Jakarta Fair ground.

PT Peraga Nusantara Jaya, the organizer of the exhibition, said in the statement here Tuesday that the participants from the United States, Austria, Belgium, India, Germany, Japan and Hong Kong will display their latest products.

The exhibition, which will be opened today by Minister of Industry Tunky Ariwibowo, is aimed at promoting improvement in the quality and quantity of Indonesia's textile products to make them more competitive on the world market, the statement said. (yns)

United Tractors' profit up

JAKARTA (JP): PT United Tractors, the heavy machinery unit of the Astra group, reported a 32.3 percent increase in its net profits last year to Rp 35.72 billion (US$16.6 million).

The company reported to its annual shareholders meeting on Tuesday that the large profit increased the net earnings per share to Rp 1,035 last year from Rp 782 in 1992.

The shareholders meeting approved the management's proposal to distribute 30 percent of the net profits or Rp 10.35 billion as dividends to its shareholders. (vin)

U.S. $13b aid bill approved

WASHINGTON (Reuter): A US$13.6 billion foreign aid bill has been approved by a House of Representatives committee, which restricts assistance to Turkey and eliminates funds for an arm of the International Monetary Fund.

The 1995 fiscal year bill, which was more than $400 million below the administration's request, contained $900 million the administration requested for Russia and other former Soviet republics, and the annual $3 billion for Israel and $2.1 for Egypt.

The House Appropriations Committee bill includes a provision withholding 25 percent of Turkey's $364 million in military aid until the administration reported on Turkey's domestic human rights practices and efforts to resolve the Cyprus conflict.

The bill, which now goes to the full House, includes about $619 million in military aid to be divided on a 7-10 ratio between Greece and Turkey.

It deleted $100 million requested by the administration for an IMF arm, the Enhanced Structural Adjustment Facility, which helps the poorest countries.

Copper at 16-month highs

LONDON (Reuter): Copper prices hit 16-month highs on Tuesday, buoyed by a fresh wave of speculative fever and traders said more increases were in store.

"It is best not to stand in the way of a runaway train," said a dealer on the London Metal Exchange (LME).

Rising copper prices are part of a general euphoria sweeping commodity markets as investors switch money from shaky bonds and equities.

They bring windfall profits for producers like Chile, Peru and Zambia, but pain for consumers, though traders say the impact on inflation so far is muted.

Copper hit a high of US$2,335 a ton on Tuesday, up 22 percent in the last month and 45 percent from its low last year.

A strong U.S. economy and signs of revival in Europe have sparked more buying of copper and a fall in stocks overhanging the market.

Fears of drought this summer in U.S. grain growing areas has spurred a rush into Chicago futures markets and this fueled a rise in the Commodity Research Bureau index, a widely-watched inflation barometer, to 3.5-year highs on Monday.

Japan, U.S. resume talks

TOKYO (Reuter): Japan and the United States broke a three- month deadlock and agreed to reopen stalled bilateral trade negotiations, Foreign Minister Koji Kakizawa said.

"Today we agreed to resume the framework talks after informal discussions," Kakizawa told a news conference on Tuesday.

Earlier, Japanese and U.S. officials met for four days in Washington to discuss resuming the talks, which have been stalled since February.

The two countries have disagreed over on how to open Japan's markets and reduce its huge trade surplus with the United States.

German trade surplus rises

WIESBADEN (AFP): A surplus in the German trade balance grew by 27.5 percent in March from the figure in February to 7.4 billion marks (US$4.48 billion), provisional official figures showed.

A deficit on the current account, which also includes services and invisible exports, meanwhile fell to 0.9 billion marks from a provisional 4.8 billion marks in February, the federal statistical office, which published the figures, said.

The current account had shown a surplus of 1.3 billion marks in March 1993.

For the first quarter of 1994, the balance showed a surplus of 19 billion marks which was about double the 1993 first-quarter surplus of 9.6 billion marks.

The current account remained in deficit for the first quarter, at 8.2 billion marks, compared to a 1993 first-quarter deficit of 6.8 billion marks.

In March, Germany imported goods worth 53.8 billion marks and exported goods valued at 61.2 billion marks. Imports rose by 10.4 percent from the figure in March 1993 and exports by 14.0 percent.

India to have futures mart

BOMBAY (Reuter): The Bombay Stock Exchange (BSE) is to launch a new broad-based 200-share index in what is seen as the first step towards the introduction of index-based futures, officials said.

The new index to be launched on Friday is expected to eventually replace the current 30-share BSE index which critics say is unfairly weighted in favor of a few blue chip stocks.

"This will lead to index-based trading, but we're still working on the details," BSE executive director A.N. Kolhatkar told Reuters.

Index-based futures would replace the carry forward system, or badla as it is known in India, which was banned six months ago.

Asit Mehta, head of Nucleus Financial Services, who first suggested the system, said index-based futures trading would solve the bourse's problems of liquidity, inadequate hedging opportunities and the cumbersome settlement mechanism.

India's 22 bourses have desperately searched for a replacement to badla and index-based futures though not the ideal solution, is the only viable alternative, analysts said.

Sales down in Japan

TOKYO (AFP): Sales at Japanese supermarkets in April fell two percent to 1.27 trillion yen (US$12 billion), the 20th year-on- year drop, an industry group said.

The decline in sales at 8,275 outlets was chiefly due to falling commodity prices, the Japan Chain Stores Association said.

Sales of foodstuffs dropped 2.5 percent from a year earlier, while those of clothing went down 5.9 percent, the association said.