Indofood names underwriters

Indofood names underwriters

JAKARTA : Indonesia's largest food company PT Indofood Sukses Makmur has named four underwriters for its upcoming five-year bond issue.

The four underwriters are PT ING Baring Securities Indonesia, PT Bahana Securities, PT Danareksa Sekuritas and PT Mandiri Sekuritas, it said.

The company will issue Rp 1 trillion (US$112 million) in bonds in the second quarter of the year to refinance existing short- term debt. The company hasn't decided on the coupon yet.

Falling interest rates in Indonesia are providing local companies with opportunities to raise funds at more attractive interest rates. --Dow Jones ;DJ; ANPAf..r.. CorporateBrief-Sampoerna-profit Sampoerna's net profit rises 75% JP/14/brief

Sampoerna's net profit rises 75%

JAKARTA : Indonesia's second largest clove cigarette maker PT Hanjaya Mandala Sampoerna said on Thursday its net profit rose 75 percent in 2002 to Rp 1.67 trillion (US$187 million) from Rp 955.41 billion a year earlier.

The sharp increase in net profit is partly due to a change in accounting methods applied to derivative and hedging transactions, which caused an adjustment in the 2001 net profit from the Rp 1.48 trillion reported last year, the company said.

On an operational level, the company said net sales rose 7.5 percent in 2002 to Rp 15.13 trillion from Rp 14.07 trillion in 2001 and gross profit rose 13 percent to Rp 4.61 trillion from Rp 4.07 trillion.

Meanwhile, operating profit rose to Rp 2.73 trillion from Rp 2.65 trillion.

The company didn't provide any further comment on its performance. --Dow Jones ;DJ; ANPAf..r.. CorporateBrief-Bogasari-Singapore Bogasari starts up plant in S'pore JP/14/brief

Bogasari starts up plant in S'pore

SINGAPORE: Indonesia's Bogasari Flour Mills has started running in Singapore its first overseas flour plant, a senior company official told Dow Jones on Thursday.

Bogasari International is currently running at under 30 percent of full capacity of 60,000 metric tons of high-grade flour a year, said Philip Purnama, Bogasari's senior vice president and chief commercial officer.

"We started operation in March. Our target is to run at 60 percent capacity by the end of the year," said Purnama.

Bogasari, the biggest flour miller and wheat importer in Indonesia, is also the world's biggest flour miller, with a 10,000-ton wheat milling capacity in Jakarta and a 6,000-ton milling capacity in Surabaya.

The flour miller is a division of the world's leading instant noodle maker, PT Indofood Sukses Makmur, and part of Indonesia's Salim Group. -- Dow Jones

;DJ; ANPAf..r.. CorporateBrief-Telkom-Motorola Telkom, Motorola to build fixed phone JP/14/brief

Telkom, Motorola to build fixed phone

JAKARTA: State-owned telecommunications company PT Telekomunikasi Indonesia (Telkom) said Thursday it has signed an agreement with Motorola Inc. to build 225,000 fixed wireless telephones in Sumatra Province until approximately mid-2006.

Each fixed wireless telephone will cost US$116 to produce and install, Telkom said in a statement.

Under the agreement, the U.S. company will design, develop and build the fixed wireless telephone network, which will use the code division multiple access, or CDMA 2001-X, system. Telkom will operate the network.

Unlike a cellular phone, which uses satellites to transmit its calls, a fixed wireless telephone uses a base station and has a limited range. An advantage of fixed wireless is the ability to connect users in remote areas without the need for laying new cables.

Telkom operates more than 7.5 million fixed lines across Indonesia. The government has 52 percent stake in Telkom, while the rest is owned by the public. -- Dow Jones

;DJ; ANPAf..r.. CorporateBrief-Hyundai-Pertamina Hyundai to build ships for Pertamina JP/14/brief

Hyundai to build ships for Pertamina

JAKARTA: National oil and gas company Pertamina on Thursday signed a contract with South Korea's Hyundai Heavy Industries Co. for the construction of two very large crude carriers.

The tankers, which will have the capacity to carry two million barrels of crude oil, cost US$65.4 million each, said Pertamina's downstream director Muchsin Bahar.

Hyundai will deliver the first tanker in September 2004, and the second one three months later, Muchsin told reporters. The tankers will ship crude oil from the Middle East to Pertamina's refinery in Cilacap.

The contract is part of Pertamina's plan to buy 12 tankers this year. In addition to these 12, Muchsin said Pertamina plans to buy another 26 new tankers within the next five years. -- Dow Jones