2008-2009 DATA CONSULT. All rights reserved.
MANDAN STEEL TO PRODUCE SPECIAL STEEL.  Mandan Steel, a Chinese  steel maker will produce special steel of the special alloy steel type  with an annual capacity of 2 million tons  a year in South Kalimantan. The project will cost around US$3 billion  to be built over a period of 5 years. Special alloy steel is used as a material for military equipment  such as armored vehicles , construction steel  and locomotive wheels.. Mandan Steel has secured guarantee in iron ore supply  from PT Yiwan Mining  and  PT Sebuku Iron Lateritic Ore (Silo) one million tons a year. Special steel is a downstream steel product   with a boiling  point of 1,500 C  with high pressure  functioning to protect instruments  in manufactured products like electronic goods, automotive products  and metal based machines.

NIPPON KOEI WINS MRT BASIC DESIGN TENDER. Jakarta is closer to implementing its long delayed subway project  after  a final decision has been made naming a consortium to prepare the basic design for the US$1 billion  project. The  government has announced  the consortium of  Nippon Koei Ltd  won the basic design tender  defeating rival consortium of Katahira & Engineers International .  Tunjung Inderawan, the railway director general said  the process of preparing the basic design will take  14 months. The completion of the basic design will be followed a tender for construction of the mass rapid transit (MRT) project) scheduled to be completed in 2016, Tunjung  said.  The MRT, design to ease traffic congestion in the city,  will  span a distance of 14.3 kilometer between Lebak Bulus  and Dukuh in the city. The project  will be financed with a loan from Japan Bank for International Cooperation to contribute Rp8.4 trillion,  and  state and city budget to put the rest.  In the first year of its operation it  will have the capacity of transporting 153,000 passengers per day to be increased to 339,000  in 2020. Earlier, Marubeni Tokyo and Sumitomo Corp. indicated interest in taking  part in the auction for the construction of  the  project.

CONOCO-CHEVRON SIGN GAS TRANSACTION VALUED AT US$ 2.5 BILLION. ConocoPhilip  and  Chevron Pacific Indonesia agreed on a sale and purchase transaction  of 500 billion cubic feet of gas. The contract, valued at US$2.5 billion, will be for over a period of 13 years. The gas will be needed by Chevron to increase its oil output  in Riau. The transaction constituted  one of seven gas sale and purchase contracts valued at US$3.26 billion signed in Jakarta recently. The contract, originally a swap contract between Conoco and Chevron and  retroactive since January, 2009 is expected to save at least US$200 million a year.

BOSOWA HAS OPTION TO CONTROL 52% OF JORR W1. The Bosowa Group has the  option to control 52%  of the W1 section of the toll road of the Jakarta Outer Ring Road (JORR)  built by PT Jakarta Lingkar Baratsatu (JLB). JLB President Fatchur Rochman  said  in the first phase Bosowa will pay a capital  of Rp 196.5 billion  or 25%  of the total investment  of Rp 1.6 trillion  and the Bosowa Group  will have the rights to increase their shares  by 27 percentage point before 31 July 2010. In addition, PT Jakarta Lingkar Baratsatu is a joint venture to build  W1 section of JORR. The venture  groups  PT Bangun Tjipta Sarana (BTS), PT Rekadaya Adicipta (RDA), PT Jasa Marga,  and the Bosowa Group  through its subsidiary PT Marga Utama Nusantara (MUN). In addition, Bosowa, Bangun Tjipta Sarana also will increase their paid up capital  to Rp 407 billion. The  share composition is 2%  held by  Bangun Tjipta Sarana  and 25% by  Rekadaya Adicipta, 25% by Bosowa and 23% by PT Jasa Marga Tbk 23%. Capital participation by Jasa Marga  is Rp180.6 billion .

HEXINDO SECURES A CONTRACT VALUED AT US$ 19 MILLION. PT Hexindo Adiperkasa Tbk has secured a contract valued at  US$18 million - US$ 19 million for the procurement of 210 units of  excavator ordered by PT Riau Andalan Pulp & Paper (RAPP). Corporate secretary Heri Akhyar said recently the company received a contract  for the procurement of 10 units of  excavator valued at US$ 30 million  and from mining contractor Thiess to be delivered by phases  until the end of this year. The company is still bound by a contract for the procurement of heavy equipment from Kaltim Prima Coal, a subsidiary of the country's largest coal producer PT Bumi Resources Tbk valued at US$ 130 million in the form of giant dump trucks and four units of excavator.  Until June 2009, the company succeeded in  posting an income of US$ 53.17 million down from US$76.97 million in the same period last year.  Its net profit also fell  to  US$4.22 million  from US$5.2 million in the same period last year.

INDIA BUSINESS LEADERS PLAN TO INVEST US$ 4 BILLION IN INDONESIA. Indian business leaders are keen on investing in the manufacturing sector in Indonesia , planning to invest US$4 billion  in the country in the next five years. The Indian business leaders grouped in the Confederation of Indian Industry (CII) plan to invest in the automotive sector, textile machine, cable, packaging, heavy electrical, and in  electrical equipment industries and in infrastructure and real estate sectors. Among the Indian companies  are Nicco Corporation Ltd to invest in cable industry, ICS Group to operate in real estate, Jetline Group  in packaging industry, Kirloskar Electric (heavy electrical) and WS Industries Ltd (electrical equipment.). A number of companies  plan to invest in the automotive sector including Tata International Ltd to invest around US$200 million  and TVS Motors to double  its investment  from US$5 million to US$10 million. Bajaj Auto Industry Ltd  and  Relliance Industry  also indicated similar interest.

TPPI  TO BUILD US$ 500 MILLION PETROCHEMICAL FACTORY. Producer of upstream petrochemicals PT Trans Pacific Petrochemical Indotama (TPPI) plans to invest US$500 million in a new petrochemical project in East Java. The company wants to build a  new production unit for paraxylene  with an annual production capacity of 600,000 tons  in its complex in Tuban, its President Amir Sambodo said.  The new unit will expand  the production capacity  of  the government's controlled company  for paraxylene from 550,000 tons at present. TPPI is seeking cooperation with state oil and gas company PT Pertamina  in building the project starting next years, Amir said. The company already secures a commitment   from Qatar Gas, the world's largest LNG producer,  to supply it with the feedstock in condensate, he said. If Pertamina  agrees to cooperate, work could start to build the aromatics plant early next year, he said. The  country has only two producers of paraxylene including Pertamina, which has a production capacity of 220,000 tons a year from  its Balongan plant. Indonesia imports 600,000 tons up to 900,000 tons of paraxylene a year to meet its domestic requirement of around 1.2 million tons a year.

TELKOMSEL AND INDOSAT TO HAVE ADDITIONAL 3G FREQUENCY. The government will give  additional 3G frequency  of one block  or 5MHz uplink  and  downlink  on 1,900 megahertz (MHz) band to Telkomsel and Indosat. There are five holders of the 3G license but only the two companies  agree to pay  Rp160 billion  in  cost for the additional  frequency. The cost does not include cost for operating rights. The five operators holding the 3G license are PT Telkomsel, PT Indosat Tbk, PT Excelcomindo Pratama Tbk, PT Natrindo Telepon Seluler, and PT Hutchison CP Telecommunication.

MERUKH TAKES OVER DAS  AND  SMAC AT US$ 70  MILLION. The Merukh family which owns PT Pukuafu Indah, has acquired  the entire stakes in  two chartered  aircraft  operators - PT Dirgantara Air Services (DAS) and Sabang Merauke Air Charter Pte Ltd (SMAC). A family member Rudolf Merukh said  DAS, bought at US$50 million and SMAC at US$20 million, are needed to facilitate transport between  mining areas of Pukuafu. Pukuafu has a number of coal and copper mines  and is a 20% shareholder of PT Newmont Nusa Tenggara, which has large  cooper mine in West Nusatenggara.  DAS and SMAC operate a number of small aircraft including ATR 42-300, Britten-Norman BN2A Islander, Indonesian Aerospace 212-100 and  CASA 212.  DAS is one of the airlines  with air operator certificate suspended earlier by the transport ministry  on July 1, 2009 after being lying idle since early this year.

CORPORATE NEWS IN BRIEF
August 2009
 
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