2008-2009 DATA CONSULT. All rights reserved.
PERTAMINA TO BUILD OIL REFINERY IN TUBAN. State oil and gas company PT Pertamina will build an oil refinery in the regency of Tuban with a daily processing capacity of 300,000 barrels of crude oil to be supplied from Pertamina's Bunyu Urip oil field. Oil and gas director general Evita Herawati said the construction of the oil refinery will be carried out in two phases to start in 2013  and to be completed in 2016. The project will include and special oil and gas port. Energy and mineral resources minister Jero Wacik said the project will be part of the supporting facility for the Bunyu Urip oil field project in the Cepu Block in East Java. The block already in operation though not yet in full capacity . In 2014, the crude oil production is expected to increase to 165,000 barrels per day when it is operating in full capacity.

TOYOTA TO EXPAND PRODUCTION CAPACITY. Toyota Motor Corporation (TMC) said it plans to make Indonesia one of its production bases for export to the world market. TMC's factory in Indonesia will supply Toyota cars to the world market, said Yukitoshi Funo, its executive vice president, said after a recent meeting with industry minister M.S. Hidayat. TMC plans to invest 41.3 billion yen (Rp 4.77 trillion) to expand its production capacity in the country to 230,000 units a year in 2014.  Currently TMC has a factory in Karawang, West Java, with a production capacity of 110,000 units a year. A new factory is being built in the same location that will increase the capacity to 180,000 units in 2013.  Earlier Johnny Darmawan, the president of PT Toyota Astra Motor, Toyota car sales agent in the country said TMC has set aside Rp 2.8 trillion for the capacity expansion by 70,000 units with groundbreaking ceremony taking place in September. Johnny Darmawan said the capacity expansion is prompted by growing demand on the domestic and export markets. TMC also will invest more in Thailand, he said, adding Thailand and Indonesia will be major production bases for Toyota in Asia Pacific region, he added. Indonesia has become the fourth largest market for Toyota cars in the world.

FOREIGN INVESTORS TO START DEVELOPMENT OF SEI MANGKEI. Nine foreign and local companies have been selected to be prospective investors for the development of the Sei Mangkei Industrial Estates in the regency of Simalungun, North Sumatra. Data from the North Sumatra regi0onal administration office said the nine companies are PT Ferrostaal Indonesia, a local unit of Ferrostaal AG of Germany, PT Aozora Bioresource of Italy's Gianazza Engineering, PT Multi Agro Gemilang Plantation, PT Golden Westindo Artaja, PT Eco Palm Industrial, PT Danareksa, Minerals Energy Commodities of the United Arab Emirate, PT Hasil Abadi Perdana and PT Medco Downstream. Sei Mangkei is to be developed into one of the country's largest integrated industrial estates. PT Ferrostaal Indonesia will team up with state plantation company PT Perkebunan Nusantara (PTPN) III to build downstream palm oil-based industry with a total investment of US$ 415 million to be completed in 4 years. The two partners will build a boil-fuel factory integrated with carotene, surfactan, fatty alcohol,  and palm oil refining plants. The project will be implemented by phases, starting with an investment of US$ 154 million in 2012, to be followed with the next phase with an investment of US$ 161 million in 2013, US$ 67 million in 2014 and US$ 33 million in 2015.

CONSUMER CREDITS DRIVING MOTOR FOR NISP'S EXPANSION. Credit expansion by PT Bank OCBC NISP Tbk in 2012 will be focused more on consumer and commercial credits, which are forecast to grow 35%.  OCBC NISP director Rudy N. Hamdani said by the end of last year the bank recorded outstanding credits for the commercial and consumer sectors reached Rp 10.5 trillion. In 2012, the figure is expected to rise to Rp14.17 trillion. Housing credits dominated its consumer credits  accounting for 90% with credits for motor vechile making up the rest . The bank also plans to develop business in credit card service. By the end of 2011, the bank already issued 45,000 units of credit card with sales valued at Rp 100 billion.  In 2012, the bank hopes to issue 100,000more units of credit card with sales predicted to reach Rp 300 billion .

BHP BILLITON WILL SOON DEVELOP INDOMET COAL PROJECT. BHP Billiton Ltd will start development of its coal mines in Maruwai, Central Kalimantan. The Melbourne - based company has secured the license from the government. A spokesman of BHP Billiton Ltd Kelly Quirke said development of the IndoMet Coal project will start with the construction of road  and other infrastructure. In September 2011, BHP said the coal mine would be operational in 2016. The IndoMet Coal project is 75% owned by  BHP with the rest by PT Adaro Energy Tbk through its subsidiary PT Alam Tri Abadi. Adaro, the country's second largest coal producer, acquired the 25% stake at a price of US$ 335 million. BHP Billiton has seven subsidiaries  each having a coal mining concession  in that area, including PT Maruwai Coal, PT Luloi Coal, PT Kalteng Coal, PT Sumber Barito Coal, PT Lahai Coal, PT Ratah Coal,  and  PT Pari Coal. The seven concessions are part of the IndoMet Coal project. The seven concessions have a coal reserve of  774 million  tons.

AUSTRALIA INVESTS US$20 MILLION IN COW BREEDING FARM  IN  INDONESIA. The Australian government has invested US$ 20 million in cow breeding farm in Indonesia. Coordinating minister for economy Hatta Rajasa said the assistance is channeled through the Australian trade ministry. Hatta said the investment will help  expand the country's cow breeding farms  that would reduce dependence on imports for beef cattle. Indonesia has heavily dependence on beef cows on imports mainly from Australia. 

BORNEO WRAPS UP ACQUISITION OF BUMI PLC. Indonesian coal miner Borneo Lumbung Energy & Metal has wrapped up the process of acquiring a 23.8% stake worth $ 1 billion in London-listed Bumi Plc from two Bakrie Group companies.  Borneo Lumbung, controlled by mining tycoon Samin Tan, bought the shares from two Bakrie Group investment holding companies, Bakrie & Brothers and Long Haul Holdings Limited.   Scott Merrilees, the director of investor relations and corporate finance at Borneo, said the company had paid the two sellers. The deal, he said, is expected to "transform Borneo Lumbung into a leading natural resources company with a diversified portfolio of high-quality thermal coal, coking coal and mineral assets." The transaction has received all the necessary regulatory and shareholder approvals, he said. Proceeds from the stock sale to Borneo Lumbung will be used to help refinance Bakrie's mounting debt, which is owed to a number of overseas lenders, led by Credit Suisse. With the transaction completed, Borneo and the Bakrie Group companies now have a joint ownership of 47.6% with stakes of 23.8% each in Bumi Plc. Bumi Plc has a 29% interest in Bumi Resources, the country's largest coal miner by production, and controls an 85% stake in Berau Coal Energy, the fifth-biggest coal producer. Standard Chartered Bank acted as the sole financier as well as lead financial adviser for the acquisition, helped by Citicorp as the supporting financial adviser. 

INTRACO PENTA TO EXPAND BUSINESS TO MINING SECTOR. Publicly traded heavy equipment company PT Intraco Penta Tbk has established two subsidiaries PT Intraco Penta Wahana and PT Inta Resources to operate in the mining industry. Intraco has injected Rp 495 million and Rp 4.99 billion in capital into Intraco Penta Wahana and PT Inta Resources. Intraco Penta president Petrus Halim said his company, which was established in 1970 with core business in heavy equipment distribution, will expand business to mining sector. Meanwhile, PT Intraco Penta  Wahana   and China National Heavy Truck Company (CNHTC)  have signed an agreement to build an assembling plant for  the Chinese company's product, Sinotruk, in Indonesia. Under an agreement signed in Beijing recently, Intraco Penta Wahana and CNHTC will establish a joint venture to run the project that will cost around US$ 100 million. Jimmy Halim, the president of PT Intraco Penta Wahana said  Intraco Penta has become the sole agent for Sintruk in the country over the past two years.  Jimmy said in a statement here the factory will produce heavy duty trucks of more than 24 tons in weight and light trucks for sales in ASEAN market including Indonesia.

October 2011
HOME            Head Line            Focus            List of Contents          To Subsrcibe