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GEELY TO BUILD ASSEMBLING FACTORY NEXT YEAR. PT Geely Mobil Indonesia (GMI) plans to build an assembling factory in the Delta Mas Industrial Estate in Cikarang, Bekasi with an investment of around US$ 30 million in 2012. The factory will be built immediately after the completion of the construction of the Delta Mas Industrial Estates by. China-Indonesia Economic and Trade Cooperation Zone (CIETCZ). Development of the car factory is line with the commitment of Geely Holding Group, the parent company of GMI to increase investment in Indonesia. Geely wants to make the country its production base in Southeast Asia and to supply its products to countries in this region, Australia and New Zealand. . Meanwhile, Beiqi Foton is studying plan to build a car factory in Indonesia with an investment of US$ 500 million.  The factory is to become the production and marketing base for Foton cars in the Asia Pacific region, said Hendry Marzuki, the chief executive officer of PT Foton Mobilindo, the distributor for Foton cars in the country.   Foton has decided to build factories outside China this year and for this region the choice fell on Indonesia over Malaysia and Thailand as the location. Hendry said construction is expected to start in July 2011 after Foton decided the location where the factory is to be built in the country. The factory will have an annual capacity to produce 100,000 unit's cars including dump trucks light trucks, buses and passenger cars. He said Foton also plans to produce components needed by those vehicles

ASSETS OF JAPFA UP TO RP8.37 TRILLION AFTER MERGER.  Merger between animal feed producer PT Japfa Comfeed Indonesia Tbk and two of its subsidiaries PT Multiphala Agrinusa and PT Bintang Terang Gemilang effective on 1 January, 2011 resulted in an increase in assets to Rp 8.37 trillion under PT Japfa.  Japfa Corporate Secretary Christine R Wibisono said after the  merger all business activities,  assets and liabilities of Multiphala  and  Bintang Terang  are legally handled by Japfa. Japfa received a loan of Rp 1 trillion in US dollar denomination from PT Bank Central Asia late November. The company plans to use Rp 570 billion of the loan fund to repay a debt to BNP Paribas.  Meanwhile, PT Ciomas Adisatwa, a subsidiary of Japfa Comfeed Indonesia, has agreed to sell its 100% stake in PT So Good Food at a price of Rp 899.1 billion. The producer and distributor of branded foods will be sold to Jupiter Foods Pte Ltd and Annona Pte Ltd, both wholly owned by Malvolia Pte Ltd.  It is a transaction between affiliates as Malvolia is 58.3% owned by Japfa. The purchase and sale agreement has been signed , a new release issued by  Japfa said, adding the final deal will be signed on May 31 .

LENZING TO EXPAND WITH AN INVESTMENT OF  US$ 130 MILLION.  PT South Pacific Viscose (SPV) a subsidiary of Lenzing Group of Austria will build its fifth factory   with an investment of US$ 130 million to expand its production capacity for viscose fiber to 325,000 tons per year in 2013. The expansion will make SPV the world's largest producer of synthetic cellulose fiber. The new investment of US$ 130 million would be implemented immediately after the completion of the construction of its fourth factory worth US$ 170 million in May 2011. Altogether, SPV would invest US$ 700 million during its three decades of operation in Indonesia. SPV also plans to expand its production capacity for sodium sulfate  from 142,000 tons to 188,000 ton per year.

SIX LOCAL INVESTORS TO BUILD FOOD ESTATES IN  MERAUKE. Six Indonesian companies plan to build infrastructure  for agro-based food industry in Merauke, Papua, if the government provides land and offer tax holiday. The investors include the  Wilmar Group, the Medco group,  the  Sinar Mas group and  companies owned by Anthony Salim  and  Ibrahim Risjad. The investors are among 15 investors already indicated interest in building sugar factories in Meanwhile, Forestry Ministry  has  granted the principle license to two companies to build  sugar plantations and factories in  Papua. PT Cendrawasih Jaya Mandiri and PT Karyabumi Papua, both subsidiaries of the Rajawali Group,  will build the project  over 80 hectares of land in the Merauke Integrated Food and Energy Estates (MIFEE).   Bambang Soepojanto, the forestry plan director general, said the forestry ministry sets no limited for land to be used by MIFEE in Papua outside primary forest and peat lands. Papua accounts for 30% of the country's total forest lands and 70% of its forests are primary forests.

CIMB NIAGA TO  ACQUIRE MULTIFINANCE COMPANY. PT Bank CIMB Niaga Tbk is set to complete the plan to acquire a  motorcycle financing firm  in the first half of this year . The acquisition plan has been delayed  from June 2010 , the bank's president Arwin Rasyid  said. Arwin said the bank is finalizing talks with 2-3 multifinance companies to be acquired . Currently CIMB Niaga already has a financing firm PT CIMB Niaga Auto Finance. CIMB Group increased its control of CIMB Niaga Auto Finance to 99.99%, by acquiring the stake of NV De Indonesische Oversees Bank (Indover), a defunct subsidiary of Bank Indonesia.  Meanwhile, Bank CIMB Niaga posted a 38.03% increase on-year in net profit to Rp 728 billion (US$84.2 million) in the first quarter of this year. The surge in net profit was attributable mainly to increase in net interest income, the financial report of the country's 5th largest bank in assets showed. Based on the financial report, CIMB Niaga recorded Rp1.87 trillion in net interest income in the first three months of the year, up from Rp 1.66 trillion  in the same period last year. Its operating income not including interest rose to Rp 739 billion from Rp 336.4 billion and operating cost other than cost of fund increased to Rp 1.63 trillion from Rp 1.3 trillion.  The outstanding credit of the bank, which is controlled by Malaysia's Hashanah National Bread, surged to Rp 108.03 trillion from Rp 82.41 trillion.


CORPORATE NEWS IN BRIEF
January 2011
MONTHLY REPORT
INDONESIAN COMMERCIAL NEWSLETTER (ICN)
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