2008-2009 DATA CONSULT. All rights reserved.

CORPORATE NEWS IN BRIEF
January 2009

BENGKULU ENERGI MANDIRI TO BUILD  BIODIESEL FACTORY. PT Bengkulu Energi Mandiri plans to invest Rp1 trillion in bio-diesel factory project in Bengkulu  to be carried out in two phases  each with a production capacity of 200,000 tons of biodiesel a year.   In the first phase, the company will invest Rp600 billion  to be followed with the second with an investment of Rp400 billion. The factory will be built in the port area of Pulau Baai, where the provincial administration has made available 10-hectare plot of land. Meanwhile, an electric appliance  company from Japan,  Kojima Electronic ,   may decide  to  delay its plan to build  bio-fuel plant  in Indonesia until 2012.    Earlier Kojima said it planned to build a factory processing  jetropha curcas into  bio-fuel  with an investment of US$900 million this year.   Agro Chemical Industry Director General Benny Wachjudi said Kojima planned to build  the factory with an annual production capacity of 15,000 tons  in the first quarter of this year.    However, the plan may not be implemented as scheduled  over difficulty in securing land to grow jetropha curcas.

TELKOMSEL WINS USO PROJECT  VALUED AT RP534 BILLION.. The contry's largest cellular phone operator  PT Telkomsel has won tenders for Package II and Package VII  of rural telephone networks under the USO (universal service obligation)  projects  valued at  Rp534 billion. Telkomsel defeated  other bidders PT Indonusa System Integrator Prima  and  PT Indosat Tbk in Package II and PT Sampoerna Telekomunikasi Indonesia  and PT Indonusa System Integrator Prima in Package VII. Meanwhile,  Telkomsel  will soon launch Apple Inc.'s much coveted Phone 3G mobile handsets.    The company  is  now in the final preparation to launch the products, Sarwoto Atmosutarno  was quoted as saying.  Telkomsel which won the license  from  Apple to distribute the Phone in Indonesia, is set to begin this month selling the second generation Phone  which is equipped  with the fast 3G communication technology.   Telkomsel is 65% owned by the state run PT Telkom , the country's largest telecommunication company  with 35% owned by Singapore TelecomMobile Pte  Ltd.

SEMEN PADANG & NEDO TO BUILD POWER PLANT .  State-owned  cement maker PT Semen Padang  will build a power plant generating electricity from waste heat from the rotary kilns of its cement factories  in West Sumatra.     The  8.5 megawatt power plant  will be built in cooperation with  New Energy  and Industrial Technology Development Organization (Nedo) from Japan with an investment of Rp203.6 billion .     The project is to be completed  in 2011  and it will operate  to supply power  for the cement factories  of the subsidiary of the country's largest cement producer Semen Gresik.     NEDO  executive director Kazuaki Kaoziwa said   five  projects  with waste heat recovery power generation  (WHRPG) technology  are being built by NEDO in the country . PT Semen Padang will be the first cement factory in the country to use the WHRPG technology . Currently there are five similar projects developed by NEDO in the country . Semen Padang is a subsidiary of PT Semen Gresik in East Java.
FOREIGN INVESTORS TO COMPETE FOR  PEMALANG POWER PLANT PROJECT . At least four foreign companies are competing  for a US$2.75 billion contract to build a coal-fired power plant in Pemalang, Central Java. Siemens  from Germany,  WTL of  Malaysia, Areva  of France, Huadian Energy Co China,  and  China Datang Corp China will be among the investors bidding for the project, said  Bambang Praptono, a director of  the  state electricity company PLN , which owns the project. The Pemalang project  will have a capacity of 2,000 megawatts ,  Bambang said. Open tender will be held next month  and the   project is expected to be  completed in 2014,  he added.  The project is part of a second crash program  to be launched after the completion of the first program now being carried out by PLN .    The first  program to build coal fired power plants with a total capacity of 10,000 megawatts is to be completed in 2010 . Unlike the first program , which  will build only coal fired power plants, the second program will also nclude gas-fired, hydroelectric, geothermal power and other types of power plants using renewable energy sources.

YU WON TO BUILD HANDSET ASSEMBLING PLANT   Producer of electronic components  PT Yu Won LCD of South Korea  plans  to build  An assembling plant for code division multiple access (CDMA) based cellular phone  in the country. Yu Won will build the factory  this year with an investment of US$10 million in Serang, Banten, an official said. Telecommunication and  informatics industry director  Ramon Bangun said the Korean company , which  is a producer of  liquid crystal display module (LCM) components plans to expand business by producing hand phones. Implementation of the project  will reduce the country's dependence on imports of hand phones, Ramon was quoted as saying. Ramon said he has sought support from the industry minister to recommend and facilitate the implementation of the project as the products to be launched will have high local content. He said Yucom Cm-100  and  CM101  will have a local content of  51.73% valued at  US$21.06 per unit  and Yucom CF-100 and  CF101  will have local content of 52.38% . The company wll also offer after sales service , therefore, Yucom products will  be highly competitive, he said.

LOTTE MART  SET FOR EXPANSION . PT Lotte Shopping Indonesia  said it has secured a license form the Investment Coordinating Board (BKPM) to expand its  hypermarket supermarket networks in Indonesia under the name of Lotte Mart.  Moon Young-Pyo, President of  PT Lotte Shopping Indonesia  said the subsidiary of South Korea's Lotte Group  will invest Rp9 trillion in the next five years to open 16 new outlets to bring the number of its outlets to  35 units in 2012, to be increased further to 45 units in 2013.  The additional outlets will make Lotte the largest retail company in the country  eclipsing France's Carrefour, Moon Young Pyo said    Lotte Mart now has 19 outlets after the acquisition of  Makro Indonesia.  PT Lotte Shopping Indonesia  acquired PT Makro Indonesia at a price of US$294.6 million from SHV Holdings N.V earlier this year. This year , Lotte is set to chalk up Rp5.7 trillion in sales , up 20% from the sales recorded by the 19 outlets under Makro in 2008.    Lotte Group has more than 90 outlets in various countries  such as China, Russia, Vietnam, India and Indonesia. 
CENTRAL OMEGA TO INVEST RP 1 TRILLION IN COAL MINES . PT Central Omega Resources   said it will invest Rp1 trillion  (US$90 million) mostly to acquire coal mines in Kalimantan  in the next two years.    Corporate secretary Stephanus Yoseph Mandagi said  the company will  receive a capital injection of Rp1 trillion  from Jinsheng Mining, its majority shareholder to strengthen its capital. The capital injection from  Jinsheng   will be used to finance expansion plan of Central Omega until 2010, Stephanus said. Central Omega, formerly operating as a financing firm with the name of PT Duta Kirana Finance,  changed its core business late last year to mining sector. The publicly listed company  started  its new business by acquiring PT Mulia Pacific  Resources and PT Mega Buana Resources  early this year. Its is 50.14% owned by Jinsheng, 23% by investing public and two local investors have the rest.

ASAHIMAS TO INVEST US$40 MILLION TO BUY NEW TECHNOLOGY . PT Asahimas Flat Glass  said it will spend around US$40 million this year to acquire  the chemical vapor deposition (CVD) technology  and to overhaul a number of its machines. Company spokesman Rusli Pranadi said  US$24.5 million of the fund will be used for the technology  to be used in its  factory in Sidoarjo   and the rest will be used to overhaul part of its factory machines. Loan will be available from bank of Tokyo-Mitsubishi UGJ Ltd and Mizuho Bank  but the company  decided to use its own fund, Rusli said He said PT Asahimas will be the first company  in Southeast Asia using the technology to be acquired from AGC Flat Glass , an affiliate in Europe. Marketing manager Muhammad Amien said the company will export up to 85% of CVD glass  to countries in Asia Pacific region  and the rest will be disposed of on the domestic market. Work is expected to start in March  after the shareholders give their approval.

NORTHSTAR ACQUIRE  29%  OF ALFARIA. Argo Volantis Pte Ltd , a subsidiary of Northstar Pacific Partners, has taken control of  29,52%  of PT Sumber Alfaria Trijaya, the operator of Alfamart retail chains in the country.     Argo Volantis Pte Ltd became a new shareholder of Sumber Alfaria  after converting bonds  of PT Cakrawala Mulia Prima , a  shareholder of   the operator of the retail chains. The  29.52% stake was in repayment of the remaining Rp210 billion  (US$19 million) debt of Cakra Mulia Prima  in the convertible bond  issued to Argo Volantis. With the deal, the shares of Cakrawala in Sumber Alfaria , which operates  2,800  Alfamart outlets in the country,  were reduced to 6.48%  from 36%. Meanwhile, PT Sumber Alfaria Trijaya  said it plans to open up to 500 new outlets  this year in Java and southern Sumatra. Company Vice President  Henry Komala said the new outlets will include franchises and outlets wholly owned by the company. Henry said franchises are to be increased in proportion  this year to 30% from 23%  at present of its total outlets. The owner of a franchise is required to invest at least US$500 million  with a store having a floor space of 100 sq. m. Last year, the company reported sales valued at an estimated Rp8 trillion or an increase of 20% from the previous year.


 
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