CAR MAKERS PLAN NEW INVESTMENT IN INDONESIA. A number of car makers plan to invest US$ 472 million until 2012 prompted by the good prospects in car market amid signs of global economic rebound. Improvement in the purchasing power of the people in the country has encouraged investors and car makers to produce new models and expand distribution networks, an official said. Budi Darmadi, the transport equipment director general, said car makers are optimistic that car domestic sales will reach at least 550,000 units next year from this year's estimate of 480,000 units. Toyota car maker plans to invest US$ 180 million for expansion of distribution networks, Volkswagen to invest US$ 143 million to build assembling plant, he cited. Other car companies planning investment include producers of Hino and Daihatsu and Isuzu cars and Chinese car maker Geely. Earlier, Budi said six foreign principals have made Indonesia production base for their cars in Asean. The foreign principals include 4 from Japan represented by Toyota Inova and Avanza, Daihatsu Grand Max and Xenia, Suzuki APV, Honda Freed, one from South Korea by Hyundai H1 and another one from China by Cherry QQ. Budi said next year two more car makers - Hino from Japan and Geely from China - plan to make the country their production base for Asean market.
NATRINDO AND XL COMPETE FOR SLI LICENCE. Mobile phone operators PT Natrindo Telepon Seluler (Axis) and PT Excelcomindo Pratama (XL) are competing for the license of international direct call (SLI). Axis is a subsidiary of Maxis, a Malaysian telecommunications operator and a minority shareholder of Saudi Telecom. The marketing director of PT Natrindo Telepon Seluler, Johan Buse, said Axis is optimistic to emerge as the winner in the competition making it the 4th operator of SLI in the country. Axis is "very much" ready in global infrastructure, Johan said. In addition Axis is ready to invest in line with the requirement set by the government, he added. If Axis is awarded the SLI license it would start building an international gate center (SGI) in Singapore. Currently, there are three SLI license holders PT Telkom, PT Indosat, and PT Bakrie Telecom. Meanwhile, President of PT Excelcomindo Pratama Tbk (XL) Hasnul Suhaimi said XL is ready to build its International Gate Center outside the Batam-Singapore track, which is considered to have been crowded and saturated. XL is ready to build the facility in other track like Surabaya-Hong Kong or Kupang-Darwin. XL, however, said if it is awarded the license, its SLI service is only available for its subscribers.
HOLCIM AND RMI BUILD LIQUID CARBON FACTORY. PT Holcim Indonesia Tbk and PT Resources Jaya Teknik Management Indonesia (RMI) plan to build a processing facility for carbon dioxide gas (CO2) with an investment of US$11.3 million in Holcim's cement factory complex in Narogong, Gunung Putri, Bogor, West Java. The two companies agree to design the facility that will have the capacity to produce 2.5 million tons of liquid carbon dioxide an hour from the gas. RMI will operate the facility processing all CO2 gas waste from the cement factory of PT Holcim Indonesia Tbk. Holcim will provide the basic material and location for the facility. PT Holcim Indonesia Tbk President Eamon Ginley said the project is to be completed in May 2010, making Holcim the first cement factory in Indonesia having the facility to process CO2 gas waste into products with commercial value that could be used by food and beverage industry. Holcim also did not rule out the possibility of building the same facility in its cement factory to be built in Tuban, East Java. Holcim plans to invest US$500 million in the Tuban project and has placed order for machines from Union Engineering of Denmark.
PERTAMINA FINALIZES ACQUISITION OF HANOI BLOCK. State oil and gas company PT Pertamina (Persero) is finalizing the acquisition of the Hanoi Trough Block in Vietnam from Quad Energy S.A. The process of acquisition was to be completed by the end of 2009. It is the last of three block Pertamina to be acquired by Pertamina in 2009. Two blocks -- Offshore North West Java (ONWJ), and Basker Manta Gummy (BMG), Australia - were already acquired earlier. Pertamina acquired 40% of ONWJ block from BP Indonesia and 10% of the BMG block from ROC Oil Ltd. Pertamina President Karen Agustiawan said the Hanoi Trough block is offshore with a depth of less than 100 meters. The 10% stake was acquired from Canada's Quad Energy S.A. which wholly owned the block. Pertamina will have an additional production of around 60 million barrels of crude oil equivalent from its acquisition in 2009. Pertamina has an additional output of 1,000 bpd from BMG and around 12,000 bpd from ONWJ. Acquisition of the two blocks were valued at US$ 12.5 million.
MUSTIKA RATU INVESTS Rp 65 BILLION. PT Mustika Ratu Tbk woll spend Rp65 billion in 2010 on factory renovation. Finance Director of Mustika Ratu Fransiska Sestri said around Rp40 billion of the fund will be used for factory renovation and Rp23 billion for the procurement of production machines and Rp2 billion for the purchase of computer sets. Part of the fund will be in loan. Currently the cosmetic factory of the company is already operating at full capacity. The factory capacity is expected to be optimized through revitalization. The company has expanded sales to a number of countries including Malaysia, Brunei Darussalam, and Algeria. In the first nine months of 2009, the company posted Rp242 billion in income with net profit at Rp 13.02 billion from the sales of cosmetics and herbal medicines.
SUZUKI INCREASES INVESTMENT BY US$100 MILLION. PT Suzuki Indomobil Motor (SIM) will invest US$100 million to e4xpand its production capacity for Suzuki cars and motorcycles in Indonesia in 2010 to increase its sales and market share. Around US$50 million of the fund will be used to expand the car production capacity and US$50 million to increase the motorcycle production capacity of its factory in Tambun, Bekasi. Currently its car assembling plant has an annual production capacity at 100,000 units. Its production capacity for motorcycles is to be increased by 40% to 720,000 next year. By the end of this year, its capacity is expected to reach 600,000 units.
TWO TELECOMMUNICATIONS OPERATORS TO INVEST IN BACKBONE NETWORKS. PT Indosat Tbk and PT Telekomunikasi Indonesia Tbk (Telkom) have invested around US$ 373.5 million to build new backbone in sea cable communication system (SKKL) and satellites to strengthen business broadband service in 2009. Indosat officially operates the 1,300 kilometer Jakabare SKKL linking Java, Kalimantan, Batam, and Singapore. The subsidiary of the Qatar Telecom also operates and provide commercial service of Palapa D satellite. Palapa D satellite has been built with an investment of US$ 220 million financed with 2008's capital expenditure. It was launched in August from China's Xichang satellite launching facility and was handed over by the contractor Thales Alenia Space to Indosat in October 2009. Meanwhile Telkom has invested Rp500 billion (US$ 53,3 million) for the first phase of the construction of the Mataram-Kupang Cable System (MKCS) section of the Palapa Ring fiber cable project which totals 1,041 kilometers including the sectors of Mataram-Kupang, Manado-Sorong, and Fakfak-Makasar.
BNI SETS ASIDE Rp 2.2 TRILLION IN CREDIT FOR ELECTRICITY PROJECTS. PT Bank Negara Indonesia Tbk (BNI) has made available more credit for electricity projects in South Sumatra valued at Rp2.2 trillion. The project PLTU Lahat, owned by PT Primanaya Energi, will has a capacity of 2X125 MW. Previously the state lender already provided similar credits for the sector such as for the construction of the coal-fired power plants of PLTU Indramayu (Rp 343.69 billion), PLTU Rembang (Rp 465.13 billion), PLTU Labuan (Rp 1.37 trillion, and PLTU Tanjung Awar-Awar (Rp 635.44 billion). BNI has also provided credit for 4 coal-fired power plants - PLTU Bangka Belitung, PLTU Kalimantan, PLTU Sulawesi Selatan, PLTU Papua - totaling Rp 519.91 billion. Currently, BNI is processing credits for the power plants of electricity systems outside Java and Bali - worth Rp 675.52 billion, power plants for the Java-Bali system Rp 700 billion, and transmission system of power rely station of Areva worth Rp 73.84 billion.
SIJIRO INTERNATIONAL TO INVEST US$ 200 MILLION IN ANIMAL HUSBANDRY PROJECT. PT Sijiro International will start development of beef cattle breeding and cattle feed lot project in the regency of Temanggung with an investment of US$ 200 million over a period of 5 years. In the first phase, the Australian investor will provide around US$ 5 million to build a factory expected to be on stream in 8 months PT Sijiro International Director Robert W Murdoch said the commitment will be implemented immediately after the signing of a memorandum of understanding with the district administration of Temanggung and other working partners. He said in the next five year period Sijiro hopes to be able to export meat from the project equivalent to 200,000 cows per year including to Australia. The breeding and feed lot project in Temanggung constitutes a follow-up of the signing of a letter of intent (LoI) in the Central Java Investment Business Forum (CJIBF) in the previous year.