INDOMOBIL SETS ASIDE RP120 BILLION TO EXPAND NISSAN CAR MARKET. PT Indomobil Internasional Tbk to invest around Rp120 billion this year to build six new outlets of sales agent to support its plan to increase sales with after sales services. The company plans to have 80 sales agents with after sales service under long term program until 2013. Indomobil Group president Gunadi Sindhuwinata said the company will continue to promote sales of and after sales service for Nissan cars in Indonesia . Indomobil has a 25% stake in PT Nissan Motor Indonesia (NIM) the sales agent for Nissan car in Indonesia. The majority 75% stake is held by the principal, Nissan Motor Company Ltd. Gunadi said an outlet will cost around Rp20 billion. In long term Indomobil Group will increase the number of its outlets from 46 units at present to more than 80 units in 2013. The company, therefore, will need to invest Rp680 billion in the next three years to build the additional 34 outlets.
PERTAMINA TO SELL STAKE IN PATRA JASA. State oil and gas producer PT Pertamina has said it would divest the majority stake it has in its property subsidiary, PT Patra Jasa, as it wants to focus more on its core business. Pertamina spokesman Mochammad Harun said Thursday the company would sell two thirds of its Patra Jasa stakes worth more than Rp 2.37 trillion (US$ 266 million). Pertamina owns 99.98% of Patra Jasa shares, with the rest held by Pertamina's subsidiary company PT Patra Niaga. "This is a private placement mechanism for strategic investors. Pertamina offers the stakes for Rp 2.377 trillion as the based price," Harun was quoted as saying. Patra Jasa has hotels, office buildings, and residential property , mostly located in various strategic locations in Indonesia. "We expect the new investor to expand the company, as we don't have any experience in managing properties," he added.
BERAU COAL ACQUIRES MAPLE AT US$ 200 MILLION. Coal producer PT Berau Coal Energy Tbk will launch initial public offering (IPO) offering to sell 7 million units of share equivalent to 18.18% of its shares valued at Rp2.24 trillion based on its financial report by 28 February 2010 when its assets were valued at Rp12.35 trillion. Berau Coal said it has named PT Danatama Makmur and PT Recapital Securities as the underwriters. The fund from the share sales will be used to acquire the whole shares of Maple Holding Limited, and 92% for capital expenditure. Maple Holding is as coal marketing agent and is wholly owned by Regulus International Pte Ltd through its subsidiary Seacoast Offsehore Inc. Maple has an agreement with Berau Coal on 30 December 2009. Under the 10-year agreement, Maple has exclusive rights to market coal produced by Berau Coal to countries other than Japan.
AHM EXPANDS PRODUCTION CAPACITY. PT Astra Honda Motor (AHM), the producer of Honda motorcycles plans to expand its production capacity to 4 million units a year with an additional investment of Rp760 billion. The capacity expansion is planned to meet growing domestic demand for motorcycles. The expansion is expected to strengthen the position of Honda in meeting market competition. Currently AHM has a capacity of 3.5 million units a year. The capacity expansion is aimed mainly to boosting production of Honda automatic scooters from its factory in Cikarang, West Java. Honda is facing stiff competition from Yamaha in the market of automatic scooters. Meanwhile, Yamaha, which still leads in the market of automatic scooter had announced plan to expand its capacity from 3 million to 3.5 million units starting next year. Currently AHM's production of automatic scooters is around 150,000 per months.
THREE STEEL MAKERS TO INVEST US$ 485 MILLION. Three steel makers began to implement plans to invest in upstream sector of steel industry to produce billets, sponge and hot rolled coil (HRC), in South Kalimantan and Cilegon, Banten, with a total investment of US$485 million. The three companies PT Mandan Steel, PT Meratus Jaya Iron and Steel (Meratus Jaya), and PT Krakatau Steel (Persero). PT Krakatau Steel, BUMN will expand its production capacity for HRC through internal restructuring. Mandan Steel, a subsidiary of China Nickel Resources Holding Co will invest US$220 million in billet project, and Meratus Jaya will invest US$ 65 million in sponge iron project. Metal Industry Director at the Industry Ministry I Putu Suryawirawan said Mandan Steel has received a guarantee for a supply of 1million - 2.5 million tons of basic material for billet in the form of iron ore per year from local suppliers PT Yiwan Mining and PT Sebuku Iron Lateritic Ore (Silo). Meratus Jaya also will finish construction of sponge iron plant with a capacity of 315,000 tons a year in South Kalimantan . Meanwhile, KS will concentrate on completing its internal restructuring project to expand its production capacity in midstream sector of the steel industry. The restructuring process includes modernization of production facilities especially in Cilegon. Modernization will cost around US$200 million including expansion of the hot strip mill production facility to increase the production capacity for HRC from 2 million tons to 2.4 million tons a year . HSM is a production facility for sheet steel for HRC.
INDONESIA TO BECOME PRODUCTION BASE FOR SANYO OPTIC INDUSTRY. Sanyo Electric Co. Ltd, Japan's electronic giant has decided to make Indonesia the largest production base for optical pick up in the world by moving its factory from China. Optical pick up is the main component of optical disc drive, such as blue ray disc recorder, DVD players, and CD/DVD drive computers. Executive director of PT Sanyo Jaya Component Indonesia Koshiro Kitagawa said the company's production capacity of optical pick up in Indonesia will be increased 45% next year. Koshiro said Sanyo will invest US$36 million in the project to increase its production of optical pick up. In 2011, the company will also set aside US$ 80 million in additional investment to US$100 million planned for this year. Investment next year is to expand production line for optical pick up, capacitor, and digital cameras. He said investment in 2011 is aimed at meeting growing demand for the products of the company in Indonesia.
PT GUNAWAN INVESTS US$120 MILLION. Producer of HRC PT Gunawan Dianjaya Steel Tbk plans to expand its production capacity by 22.22% to 550,000 tons per year from 450,000 tons at present with an investment of US$120 million. Company's Director and Corporate Secretary Hadi Sutjipto said the project is to be completed in 2013. Hadi said 70% of its steel plate production will be exported . Exports include 20% to Malaysia, 40% to Singapore, and the rest to Europe. The entire basic material in the form of slabs or iron ore mixed with scrap is imported from Ukraine, Russia and Brazil. He said growing market demand has encouraged the company to expand its steel plate production. Demand in export market also rose 23.4% in the first half of the year to Rp538 billion from the same period last year. Net sales in the first half of the year rose 7.6% from Rp830 billion to Rp893 billion, but a 3.38% fall was recorded in domestic sales Rp355 billion from Rp 367 billion.
BUKIT ASAM TO BUILD COAL PORT. State-owned coal producer PT Bukit Asam will build a coal port in Lampung to facilitate shipments of its coal from Tanjung Enim in South Sumatra. The project, needed to support its plan to raise its coal output, will cost an estimated Rp1 trillion (US$111 million), Bukit Asam President Sukrisno said. Bukit Asam plans to boost its coal production from its coal mine in Tanjung Enim from around 10 million tons a year at present, Sukrisno said. The company has to put off plan to raise output because of difficulty in the transport of the production. Sukrisno said construction is expected to start early next year and to be operational in 2013 company's coal production is expected to reach 25 million tons. The production is expected to rise further to 70 million tons in 2016 when three railway projects to facilitate coal transport from Tanjung Enim have been completed. Bukit Asam Transpacific Railway (BATR), Adani Global PT Kereta Api plan to build rail tracks to link Tanjung Enim port towns in Lampung and South Sumatra. Earlier the company said it will set aside US$ 2 billion to finance a number of projects in 2011. Corporate secretary Achmad Sudarto most or US$ 1.5 billion of the fund will be used to increase its stake from 10% to 30% in PT Bukit Asam Transpacific Railway (BATR). BATR is currently 10% owned by Bukit Asam, 80% by PT Transpacific Railway Infrastructure and 10% by China Railway Engineering Corporation. Bukit Asam will also build a 30-megawatt coal fired power plant in its coal mine Tanjung Enim to cost around US$41.4 million to be operational this year .