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BRI  READY WITH Rp 1 TRILLION TO FINANCE ACQUISITION. PT Bank Rakyat Indonesia (BRI) said it has set aside Rp1 trillion to acquire PT Bank Bukopin, a bank partly owned by the government, to support its plans to consolidate its business in the retail sector.  Sofyan Basir, the president of the state lender, said the bank has enough cash to buy a mid-sized bank with strong credit market in small and medium enterprise and consumer business sector.  Discussion is in progress on acquisition of Bank Bukopin. A source at the office of the state minister for state enterprises said BRI; the country's second largest bank in assets was set to finalize Bukopin'a acquisition by the end of this year. A BRI director Bambang Supeno said there has been no official talk with Bukopin, but BRI is optimistic the process would go smoothly. Earlier, BRI failed in its attempt to acquire Bank Tabungan Negara (BTN), another state bank as the plan was rejected by the House of Representatives. BRI chief commissioner Bunasor Sanim said the bank management has proposed the plan to acquire Bukopin to the board of commissioners.

BAKRIE PLANTATIONS TO ACQUIRE PLANTATION IN LIBERIA. PT Bakrie Sumatera Plantations Tk has set aside US$10 million to finance investment in Liberia through its subsidiary Bakrie Liberia Plantations BV. Bakrie Plantations President  Ambono Janurianto  said  the company is eyeing 200,000 acres of land in that country  to be used for plantation land  under a 100 year concession. Around US$10 million will be neede din the first hase to build facilities in the land. Currently the company is negotiating with the Liberian government  on its plan to acquire the land of which 4,000 acres are already cultivated with rubber amd 6,000 acred with oil palm. The company, which has plantations in Sumatra  recorded sales valued at Rp1.24 trillion  in the first seven months of this year down 33% from Rp185 trillion in the same period last year. Sharp price fall of crude oil palm (CPO) largely caused the decline in sales, a company official Dian Indah Kencana Sari said. Dian said CPO contributed 80.48% to the company's total consolidated income, which shrank 30% to Rp984 billion in the seven month period year-on-year. The company recorded a 2% increase in sales to 149,900 tons of CPO in the first seven months of the year but price fall cause a decline in earning, she said.

INDOFOOD SPIN OFF INSTANT NOODLE.  Indonesian food giant PT Indofood Sukses Makmur has spun off its instant noodle and food flavor divisions for efficiency. Indofood spun off the two divisions in September reducing its business lines to plantation, distribution and other business sectors.  The decision is part of the company's program to launch consolidation, Indofood Vice President Fransiscus Welirang said. With streamlined business structure it will be easier for the company to resume business expansion through acquisitions of companies operating in similar business sectors, Welirang said. The two divisions has become an independent company to be named PT Indofood Consumer Braded Products Sukses Makmur (Indofood CBP) to start operation in Oct. 1. Indofood owns 99.99% of Indofood CBP, and PT Prima Intipangan Sejati holds the remaining shares. Fransiscus Welirang said as an independent company Indofood CBP will be be to focus more on instant noodle business. The company said  it will expand operation to other countries in this region after  spinning off
INDIKA TAKES CONTROL OF 98.55% OF PETROSEA. PT Indika Energi increased its stake to 98.55% in PT Petrosea after wrapping up the process of tender offer of the publicly traded mining service contractor.  Indika Energy paid around US$18 million for the tender offer   of 16.6% shares of Petrosea held by investing public.   Tender offer was required after Indika Energy acquired the majority stake of 81.95% worth US$83.8 million in Petrosea from former shareholder Clough International Singapore in July. Indika Vice President Retina Rosabai said Petrosea is expected to contribute US$250 million to Indika's total income this year. Petrosea recently signed a contract worth US$200 million for the construction of coal mine in Sanga Sanga, East Kalimantan. Petrose offered to invest US$44 million under the contract in the form of mining equipment. 
HOLCIM TO WRAP UP ACQUISITION OF HOLCIM SDN BHD. PT Holcim Indonesia hopes to wrap up the process of wholly acquiring Holcim Sdn Bhd in Malaysia at a price of US$50 million by the end of this month. With the acquisition, the Indonesian unit of the Swiss-based cement giant Holcim Ltd will increase its cement  production capacity to 9.6 million tons  from 8.6 million tons at present.    A company director Rusli Setiawan said the country's third largest cement maker has secured a US$40 million loan pledge from local banks to help finance the acquisition.  Holcim Indonesia reported Rp280 billion (US$28 million) in net profit in the first half of this year, down from Rp341 billion in the same period last year.    Rusli attributed the decline in profit to large payment of loan interest. Its sales, however, rose 15% to Rp 2.35 trillion. Currently Holcim has two cement factories in Indonesia - in Narogong, West Java and in Cilacap, Central Java. It also has a cement grinding mill in Ciwandan, Banten. Around 77.33% of the shares of  Holcim Indonesia are owned by  Holderfin BV Ltd, a subsidiary of Holcim Ltd.

ADARO AND SHELL INVESTMENT AMOUNT US$40 MILLION. PT Indonesia Bulk Terminal (IBT) and PT Shell Indonesia have signed an agreement to build a US$40 million fuel facility in South Kalimantan. IBT, a subsidiary of the country's second largest coal producer PT Adaro Energy, is the operator of a coal terminal in the Laut Island off South Kalimantan. Andre J Mamuaya, president of Adaro Energy, said under the agreement signed on Sept 1; Shell will build the fuel storage facility with a capacity of 60,000 tons near a fuel tank owned by IBT on the island. The facility will support the operation of the coal terminal , which has a coal loading capacity of 12 million ton. Shell will own and operate the facility until 2022 before it is handed over to IBT.
ANTAM REVIEWING 4 LARGE PROJECTS. Publicly traded mining company PT Aneka Tambang (Antam) said it is reviewing implementation of a number of major projects on falling prices of mining commodities. The unfavorable global condition and swelling costs, have forced Antam to be more careful in embarking on major ventures, Alwinsyah Loebis, the president of the state company, said. Loebis said the company has suffered financial setback as a result of the global crisis with shrinking prices of mining commodities. The company is forced to evaluate implementation of a number of projects including the chemical grade alumina project in Tayan, West Kalimantan, the cost of which has swelled from an estimated US$250 million to US$400 million. Other projects include a US$300 million coal fired power plant to be built in Pomalaa, Sulawesi , needed to supply power to its ferro nickel plants in that area. The company already decided to close an old and almost depleted bauxite mine in Kijang and might drop plan to cooperate with Russia's OAO Russian Aluminum (RusAl)

TOTAL E&P INVESTMENT US$22 BILLION.  Total E&P Indonesie said it will invest up to US$22 billion until 2032 if it is given an extension of contract over the Mahakam Block in East Kalimantan. The contract of Total in the gas block will expire in 2017 and state-owned oil and gas company PT Pertamina is set to take the controlling stake in the block. President of the French company Elizabeth Prousts said the block is entering the phase of weak pressure which could lead to 40% or 2 billion cubic feet decline in output a year. A program, therefore, needs to be launched to maintain its production level, Elizabeth said.  Total already invested around US$13.3 billion in the block until 2008 and additional investment of US$22 billion will be needed from 2009 to 2032, she said. Extension of the contract, therefore, is strategically important, she added.  She said Total and its partner Inpex have pumped out only 50% of the block's total gas reserve of 23 trillion cubic feet. Earlier Total said it has set aside US$2.1 billion for investment and operating expenditure in the country this year.

BAKRIE TELECOM POST 16.6% INCREASE IN NET PROFIT. Publicly traded telecommunication company PT Bakrie Telecom reported a 16.6% increase in net profit to Rp72.8 billion (US$7.3 million) in the first half of the year from the same period in 2008. Company President Anindya N. Bakrie said its gross income rose 34.9% to Rp1.66 trillion with net income rising 41.9% to Rp1.33 trillion. Anindya attributed the increase to growing number of its subscribers - up 63.8% year-on-year to 8.9 million in June. The number of subscribers in June was 10.9% higher than by the end of the first quarter, he said. Earlier the company said it was considering selling part of its share to foreign investors to become its strategic partner. Other major telecommunication companies in the country  are also partly  owned by foreign investors such as PT Indosat, which is controlled by Qatar Telecom (Qtel), PT  Excelcomindo, controlled by Malaysia's Indocel Holding Sdn Bhd and PT Telkomsel, which is 35% owned by Singapore Telecommunications Ltd

September 2009
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