Sampoerna reports earnings

Sampoerna reports earnings

JAKARTA (JP): PT HM Sampoerna, a Surabaya-based cigarette
manufacturer listed on the Jakarta and Surabaya stock exchanges,
has announced consolidated earnings of Rp 299 (12.87 U.S. cents)
per share from its operation in the first quarter of this year.

The company's spokeswoman, Lita P. Soenardi, said here
Saturday that the company's net earnings in the full year of 1993
reached Rp 586 per share.

She said the company's operating income for the quarter was Rp
85 billion (US$39.44 million), as compared to last year's
operating income of Rp 187 billion, and its net sales for the
quarter reached Rp 267 billion, as compared to last year's net
sales of Rp 886 billion ($411.14 million).

Lita said the company will hold an annual meeting of
shareholders in Surabaya on June 18, in which its management will
propose the issuance of three bonus shares for every two existing
shares. (02)

Firms to get awards

JAKARTA (JP): Two business groups will present awards of
excellence here Wednesday to Indonesian and Canadian companies
which have played distinguished roles in promoting trade,
investment and specialized service ties between the two
countries.

The Canadian embassy announced over the weekend that the
Indonesia-Canada Business Council and the Canadian Business
Association, in cooperation with the embassy, will present the
awards in a ceremony at the Jakarta Hilton Hotel.

The ceremony will be attended by Coordinating Minister for
Industry and Trade Hartarto and Canadian Ambassador Lawrence T.
Dickenson.

The awards -- for business excellence in merchandise trade, in
the provision of specialized services and in direct investment,
joint venture and/or transfer of technology -- are intended to
recognize the contribution of firms located in Indonesia and
their Canadian associates to the expansion of bilateral economic
relations.

The two-way trade between Indonesia and Canada, which are
currently celebrating 40 years of the establishment of resident
diplomatic missions, has grown by over 10 percent per annum and
is expected to exceed C$1 billion in 1994. The trade is almost in
balance, with exports and imports by Indonesia totaling
approximately $500 million each. (02)

S. Korean economy jumps

SEOUL (AFP): The South Korean economy grew 8.8 percent in the
three months up to March, the biggest quarterly gain since 1991,
the central Bank of Korea (BOK) said Saturday.

The bank said the gross national product (GNP) growth rate,
calculated on a year-to-year basis, was the highest since the
10.7 percent figure in the second quarter of 1991.

The robust growth, which outstripped expectations, was fueled
by a surge in facility investment and a sharp increase in
exports.

Facility investment shot up 20.2 percent, the highest in six
years. Exports grew 8.9 percent, thanks mainly to the stronger
yen that made Korean products cheaper in overseas markets, and to
the economic recovery in developed countries.

BOK director Kim Myong-Ho told journalists he foresaw the
growth trend continuing for the rest of the year, adding that the
economy was expected to grow seven percent for the whole year.
The BOK earlier predicted a 6.3 percent growth.

IMF loans for Algeria

WASHINGTON (Reuter): The International Monetary Fund has
approved roughly US$1.04 billion in loans for Algeria to help
revive the country's economy and reduce its 25 percent
unemployment rate.

The financial assistance will consist of a $648 million one-
year, standby loan to back up Algeria's reform program and a $389
million credit to make up for a shortfall in export earnings and
increased cereal import costs.

"Algeria's program for 1994-95, supported by the standby
credit, is the first step in a medium-term economic
liberalization and reform process," the IMF said.

The program aims to bring down inflation by rapidly bringing
the government budget back to better balance and to open up the
economy through price and trade liberalization.

Buffeted by declining oil export revenues and a campaign by
Islamic militants to overthrow the army-backed government,
Algeria has fallen on hard economic times and has failed to keep
up on debt payments to foreign creditors.

Russian grain harvest down

MOSCOW (Reuter): Russia's 1994 grain harvest could fall to 80
million tons from 99 million last year, the head of the state
grain purchasing agency Roskhleboprodukt said.

Leonid Cheshinsky told the State Duma, the lower chamber of
parliament, that Russia's annual domestic grain requirements were
120-130 million tons.

"I believe we will be short of grain this year. We have no
credits from grain exporters and we have no money of our own to
import grain," he said.

Russian officials have said grain imports will be reduced to a
bare minimum this year. Imports dropped last year to about 11
million tons from 26 million in 1992.

"It is a pity that we are not buying it because we are
consuming our reserves and there has still been no decision on
grain imports," Cheshinsky said.

Earlier this month, Cheshinsky headed a senior grain trade
delegation to the United States which discussed purchases of two
to three million tons of U.S. wheat. But bids to purchase 400,000
tons of wheat were rejected as too low.

Pakistan forex reserve

KARACHI (AFP): Pakistan's foreign exchange reserves have
exceeded US$2 billion for the first time since 1985, the deputy
governor of the central State Bank of Pakistan (SBP) said here
Saturday.

Fresh deposits of more than US$70 million into private foreign
exchange currency accounts were reported this month increasing
the liquid reserves at the disposal of the SBP, he said.

Exports, remittances, foreign exchange accounts and foreign
aid constitute a major portion of foreign exchange reserves in
the country.

The SBP official said he hoped that the reserves would further
rise with the improvement of the investment climate in Pakistan.

The increase in forex reserves can also be attributed to a
decline in the country's imports, another SBP official said.

Loans to Palestine delayed

WASHINGTON (AFP): Loans to the West Bank and Gaza Strip
promised by the international community to support a 1993
autonomy accord have not been disbursed because of the area's
inadequate financial structure, said a World Bank source.

The bank said Thursday that it had approved a US$128-million
loan from a trust fund it is coordinating for Gaza to run schools
and roads and provide water and electricity.

The loan, financed by Saudi Arabia, the Arab Fund, Kuwait and
others, is the first in a series that should eventually total $2
billion to rebuild the region returned to Palestinian
administration after the Israelis pulled out. The bank announced
Friday that its share would be $30 million.

But while allocating the loans has been easy identifying
financial organizations capable of efficiently absorbing that
much money has been difficult.

"Reality takes more time than wishes," said Ram Chopra, World
Bank Middle East Director, as he described delays in disbursing
loans pledged in September 1993 to support the Middle East peace
process.