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.