JAKARTA : State-owned Bank Mandiri signed on Wednesday an

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