JAKARTA : State-owned Bank Mandiri signed on Wednesday an agreement with software company PT Microsoft Indonesia under which the latter would help the giant bank in strengthening its IT (information technology) infrastructure.

The bank said in a statement that Microsoft would assist in designing the Windows 2000 architecture and its directory, and would also help to arrange a centralized monitoring system.

It added that the better technology would improve its products and services, maximize the productivity of employees and enable the bank to improve risk management.

The statement also said that PT Mastersystem would help the bank in the maintenance, updating and upgrading of the Microsoft products. -- JP

Daewoo Motor suspends production

SEOUL : Daewoo Motor Co.'s car production was suspended Wednesday after its largest supplier stopped delivering parts, citing payment delays, officials said.

Daewoo, bought by U.S. giant General Motors Corp. (GM) in April, said that Delphi Automotive Systems Corp. stopped delivering parts on Tuesday.

"Operations at our three car plants came to a halt," a Daewoo official said. Other suppliers have threatened to halt deliveries from Thursday.

Daewoo suffered another blow on Wednesday when the Ministry of Construction and Transportation ordered the recall of 290,000 mid-sized cars sold domestically because of brake hose defects.

Daewoo's suppliers have complained they are facing severe financial problems because of delays in payments.

Subcontractors for Daewoo Motor said their problems have been getting worse after sharp drops in the bankrupt automaker's sales and production. --AFP.

Indosat net profit falls 7.8 percent

JAKARTA : PT Indonesian Satellite Corp. said Wednesday its first- half net profit fell 7.8 percent on year to Rp 535.5 billion due to higher operating costs.

Analysts said Indosat's net profit was below their forecast of Rp 600 billion - Rp 700 billion.

Its revenue during the period rose 25 percent to Rp 3.2 trillion, thanks to the higher contribution from its cellular unit PT Satelit Palapa Indonesia, or Satelindo. Indosat booked Rp 1.465 trillion in revenue, or 46 percent of its total revenue, from its cellular business.

Revenue from its international call services fell 9.5 percent to Rp 1.082 trillion from Rp 1.196 trillion.

Indosat's operating expenses during the period rose 53 percent to Rp 2.3 trillion from Rp 1.5 trillion last year, mostly due to an increase in depreciation expenses, the company said. Its depreciation expenses rose to Rp 821.9 billion from Rp 382.6 billion a year ago.

During the period, Indosat booked Rp 502.6 billion in foreign exchange gains, compared with Rp 83 billion in foreign exchange losses last year. --Dow Jones

Sanyo to sell appliances in China

TOKYO : Major Japanese consumer electronics manufacturer Sanyo Electric Co. Ltd. said Wednesday it will start selling appliances in China from December through its Chinese partner Haier Group Co. Ltd.

"Haier's extensive retail network outlets are very attractive," said a Sanyo spokesman.

"It is difficult for foreign firms like us to sell our products in China especially in the inland regions. Haier's network should help us expand our sales in China," he said.

The Japanese firm aims to sell some 160 million yen's (US$1.4 million) worth of products in China from December to March using 1,600 Haier affiliated outlets.

The Sanyo spokesman could not give the firm's sales volume in China.

At Haier stores, Sanyo initially plans to sell vacuum cleaners, fax machines, and mini stereo systems.

The partners formed their tie-up in January, allowing each to sell their products mutually in Japan and China. --AFP

Telstra net profit falls 10 percent

SYDNEY : Telstra Corp, Australia's largest telecoms company, on Wednesday reported a 10 percent fall in net profit of AS$3.66 billion (US$2.0 billion).

Telstra said underlying sales revenues grew 1.7 percent to 18.8 billion dollars and earnings before interest and tax rose five per cent to 6.7 billion dollars.

Telstra said it expected 2002/03 revenue growth to remain around 1.7 per cent and cashflows were likely to remain strong.

But Telstra chief executive Ziggy Switkowski declined to give details, saying there were too many financial, economic and political imponderable in the agenda for the company.

"Hence making financial predictions seems to me to be reckless," he said. --AFP.

HP reports losses in first results

PALO ALTO, California : A downturn in corporate tech spending and merger costs led giant Hewlett-Packard Tuesday to report a third quarter net loss of US$2.029 billion, $116 million more than in the same quarter last year.

The company also reported revenues of $16.5 billion, a decline of nine percent over the same quarter last year, when revenues were $18.2 billion.

The company said it saw a per share loss of 67 cents for the third quarter ending July 31.

Tuesday's figures represent the first full quarter results from HP since its May acquisition of Compaq following a bitter battle with heirs of HP's co-founders.

In most cases, HP combined its totals with Compaq for last year pre-merger results.

Under its own accounting standards, HP listed its earnings per share of 14 cents, in line with analyst expectations, on profits of 420 million dollars.

Company chief executive Carly Fiorina, while praising the results as an accomplishment, said the company still faces challenges given "the tough economy" and continuing merger with Compaq.

Fiorina said the revenue declines were expected.

"The pattern of our revenue declines in personal and enterprise systems is consistent with our merger planning assumptions," she said in a statement. --AFP. Siemens to cut another 700 jobs

MUNICH :The German electronics giant Siemens is to cut a further 700 jobs in its IC Mobile telecoms unit, on top of 4,600 already programmed, it said Tuesday.

A spokesman said the unit, which makes mobile phones and mobile phone networks and equipment, would shed the jobs by the end of the next fiscal year to Sept.30, 2003.

Siemens' mobile networks division -- which covers GSM and UMTS technologies -- posted a sharply narrower operating loss of 21 million euros (US$20.4 million) in the third quarter (the period from April to June), compared with a loss of 511 million euros a year earlier.

Like other companies in the telecoms and high-tech sectors, Siemens has been hit hard by the bursting of the telecoms bubble and a collapse in investment by telecom operators, and has now decided to cut more than 30,000 jobs across all its divisions around the world.

On Monday, it revealed it was cutting an additional 4,000 jobs in its ICN fixed-telephone networks division, not just 1,300 as announced last week. --AFP

Boeing union urges members to reject final offer

NEW YORK : Boeing's union will urge its members to reject the company's "last, best and final offer," continuing to deem the proposals substandard.

Chief negotiator Dick Schneider said Tuesday: "Boeing put forward a job-killing, money-stealing, benefit-slashing offer."

The union said it offered to continue negotiations around the clock and to extend the current contract -- due to expire Sept 1 -- on a day-to-day basis until an agreement or stalemate is reached.

International Association of Machinists members are due to vote on the offer on Thursday. If rejected, a two-third majority will carry a strike through. If the union fails to reach this majority, the offer will be deemed automatically accepted, notwithstanding an earlier vote to the contrary.

Boeing has proposed and eight percent increase for the first year -- which translates into an average 4,700 dollar-a-year increase, a 2.0 percent increase the second year and a 2.5 percent increase for the third. --AFP