Gudang Garam's net profit falls

Gudang Garam's net profit falls

JAKARTA: Indonesia's largest cigarette producer PT Gudang Garam
said on Monday its net profit for the first quarter of this year
fell 5.6 percent to Rp 483.28 billion from Rp 511.71 billion
during the same period last year.

The company said its sales for the first three months of this
year were up 24 percent to Rp 5.848 trillion from Rp 4.699
trillion in 2002.

But the increase in its sales was offset by the higher cost of
sales after the government raised the excise tax on cigarettes
late last year.

The company said its higher cost of sales, which ballooned to
Rp 4.707 trillion from Rp 3.593 trillion, also reflected the
impact of the government's controversial hikes of fuel prices and
electricity tariffs late last year. -- Dow Jones

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ANPAf..r..
CorporateBrief-Telkom-dividens
Telkom to put aside dividens
JP/

Telkom to put aside dividens

JAKARTA: PT Telekomunikasi Indonesia said on Monday it is
proposing shareholders approve putting aside a smaller 30 percent
of 2002 net profit for dividends in order to put more money back
into the business.

Shareholders will hold their annual meeting on May 9.

Rochiman Sukarno, head of Telkom's investor relations
department, said the proposed figure is lower than the 50 percent
that Telkom put aside from its 2001 net profit.

"We need funds to develop our businesses," he said, without
offering details.

As of Dec 31., Telkom operated around 7.75 million fixed
telephone lines. It plans to develop another 750,000 telephone
lines this year, with investment forecast at around Rp 3
trillion.

The government has a 51.19 percent stake in Telkom, and the
rest is owned by the public.

Telkom owns a 65 percent stake in Indonesia's leading cellular
company PT Telekomunikasi Selular Indonesia, or Telkomsel, which
as of Dec. 31, had around six million subscribers. Singapore
Telecommunications Limited, or Singtel, holds a 35 percent stake
in Telkomsel. -- Dow Jones

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CorporateBrief-Medco-issue-bonds
Medco to issue US$200m bonds
JP/

Medco to issue US$200m bonds

JAKARTA: Medco Energi Internasional said on Monday it plans to
issue US$200 million worth of five-year bonds in May to fund the
acquisition of oil fields in Indonesia.

Medco Chief Executive Hilmi Panigoro said the company will
issue another $100 million in five-year bonds to refinance a note
coming due in March 2007.

"We plan to issue a total $300 billion in Yankee bond in May
to refinance and acquire more oil assets," he told reporters.

The oil company wants to refinance its bonds due 2007 as these
carry covenants that put heavy restrictions on debt levels at its
units, said a source close to the deal. The new bonds will have
less heavy restrictions, the source added.

Medco will launch its international roadshow Monday next week
in Singapore, before moving to Hong Kong, London and New York,
Hilmi said. -- Dow Jones

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ANPAf..r..
CorporateBrief-Toyota-plant-Russia
Toyota to build auto plant in Russia
JP/

Toyota to build auto plant in Russia

TOKYO: Japan's top car maker, Toyota, may build an auto-assembly
plant in Russia to take advantage of rapidly growing demand
there, a news report said on Monday.

If the plan goes ahead, the plant could become operational as
early as 2006, the Nikkan Kogyo newspaper reported, without
clarifying its sources.

"The company started direct sales activities in the nation in
2002. A highly probable idea is that it will make a sport-utility
vehicle, which has been selling well in the market," the daily
reported.

The paper said nothing about expected output volume at the
proposed factory.

The size of the investment will be decided before the end of
this year, the Nikkan Kogyo said.

"(Russia's) automobile market is expanding. By establishing a
local production facility, the company aims to further cultivate
the market," the newspaper said.

Toyota officials could not be reached for immediate comment as
the company is on a break this week for Japan's Golden Week
holiday season. -- AFP

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CorporateBrief-KL-chipmaker-China
KL chipmaker moves to China
JP/

KL chipmaker moves to China

KUALA LUMPUR: Malaysia's largest listed chipmaker is expected to
shift manufacturing of its lower-end products to China, in a move
likely to be followed by other chipmakers, a report said on
Monday.

Malaysian Pacific Industries Bhd. has recently completed a
groundbreaking ceremony for its plant in Shanghai, expected to be
operational in September, an industry source told the New Straits
Times.

It plans to transfer nine mobile phone integrated circuit
package lines to Shanghai but production of higher-end products
will be continued in Malaysia, the source said.

It is expected to invest an initial five million dollars in
its China operations which will help cut costs by 10 to 15
percent, sources said.

The move is part of a three-year plan to counter rising
competition from cheaper locations for lower-end products and
boost exports, the newspaper said.

MPI's officials were not immediately available to comment. --
AFP