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MUTIARA SETS CREDIT TARGET AT RP 10 TRILLION. PT Bank Mutiara Tbk has set  target for outstanding credits at Rp 10 trillion by the end of 2011 or an increase of 58.73% from  Rp 6.3 trillion it recorded last year. Maryono, the president of the bank, formerly scandal hit Bank Century, said he is optimistic that  it  would also post a strong growth of 15.73% in third party funds  to Rp 10.3 trillion  by the end of the year , from  Rp 8.9 trillion in 2010.  By the end of May  this year, the lender already recorded  Rp 10.1 trillion in third party fund or 98.02% of the target. Total outstanding credits  by May already reached 80.96%  or Rp 8.4 trillion of the targets. Therefore, by the end of the year, its loan to deposit ratio is expected to reach 90%. Its house credit (KPR) is forecast to rise 77.3%   from Rp 113.38 billion last year . Meanwhile, Bank Mutiara has reached  cooperation agreements with six developers including PT Alam Sutera Realty Tbk, PT Gapura Prima Group, PT Perumnas, PT Wijaya Karya Tbk, PT Duta Paramindo Sejahtera  and two medium sized  property developers in Yogyakarta and Bali . The bank also hopes to cooperate with other developers including PT Podomoro Group, Ciputra Group  and two medium sized developers in Surabaya. The bank already provided  credits for 5,000 customers under the KPR program  until May 2011.

ASTRA GROUP CONTROLS 500 MILLION TONS  OF COAL IN RESERVES. PT United Tractors Tbk,  a subsidiary of PT Astra International Tbk hopes to increase its coal reserves to 500 million  tons  in the next three years through acquisition of more coal mines. Presidents of Astra International Tbk Prijono Sugiarto said currently United Tractor  has coal reserves totaling 250 million  tons . United Tractors, which is known to have core business in heavy equipment sales, has expanded business to coal mining through its subsidiary PT Pama Persada Nusantara. PT United Tractor wants to double its coal reserves to 500 million tons in three years. PT United Tractors  will use  fund  of Rp 6.07 trillion it raised from a recent rights issue to acquire more coal mines.

PROTONS  FOCUS ON EXPANSION OF NETWORKS THIS YEAR. Protons  Edar Indonesia is set to expand its chain of  sales agents in Indonesia  to 30 dealers until the end of this year. President of PT Protons  Edar Indonesia Gunther Scherz said the sole agent for  Protons cars  will open more sales agents and  improve the quality of its dealers in  Indonesia. Currently  Protons  has 17 sales agents  and 30 service chains in Indonesia. Protons  hopes to soon operate  good quality networks in sales, service and spare parts in   Surabaya, Bandung, Bali, Purwokerto, Depok  and a number of other cities. Gunther  said expansion of the networks is part of the strategy to promote the image of the Malaysian brand in Indonesia. Protons hopes to increase income not only from car sales but also from services given, sales of accessories  and financing  and other types of business that could be handled by its dealers.

INDOCEMENT TO IMMEDIATELY BUILD CEMENT FACTORY IN CENTRAL JAVA. PT Indocement Tunggal Prakarsa Tbk will soon implement its project to build a new cement factory in Pati, Central Java.  Construction will start next year  after the company secured an approval from the local people . Company's vice president Franky Welirang  said  construction of one of two factories planned next year is expected to start  in Central Java early next year . Indocement hopes to increase  cement production  by  2.5  million tons a year  from the two factories to be built in Central Java and North Sumatra. The Pati unit is  to have an annual production capacity of 1.5 million  tons  and the one in North Sumatra is to have an annual production capacity of 1 million tons  In addition, Indocement is strengthening its business in  the production of ready for use concrete  and  develop its aggregate mine to be ready to meet growing demand  from property projects  especially housing and high rise building projects in Jakarta and West Java. Currently, Indocement has three cement factories  - in Cetereup (Bogor), Palimanan (Cirebon),  and in  Tarjun (Kota Baru, South Kalimantan)  with total production  capacity of 18.6 million  tons  per year . The largest factory is  the one in  Citereup  which has  nine production lines  with a capacity of 11.9 million  tons  a year. The one in Palimanan has two production units  with a total capacity of 4.1 million  tons ,  and the factory in Tarjun has a production  capacity of 2.6 million  tons  per year.

PUSRI TO BUILD FERTILIZER FACTORY IN NIGERIA. State fertilizer holdings PT Pupuk Sriwijaya is studying possibility of cooperation with a Nigerian state company to build a urea fertilizer factory in that  African country. Gas price is much cheaper in Nigeria an oil and gas rich  country, a general manager of Pusri Eddy Herman Harun  has been quoted as saying The price of gas in Nigeria, one of 8 largest oil and gas producers in the world, is around US$ 2 per MMBTU as against more than US$ 6 per MMBTU in Indonesia, Eddy said. With the gas feedstock cheap  in price, the urea fertilizer to be produced would be highly competitive, he said.   Pusri is building a urea fertilizer plant in Iran  but the Indonesian company  has only a 5% stake in the joint venture with an Iranian  counterpart. Meanwhile, Pusri  and Jordan Phosphate  Mines Co. Plc will build  a nitrogen, phosphate and kalium (NPK) fertilizer  factory  in Banyuasin, South Sumatra.  Construction of the factory to cost around US$ 750 million will start in 2014  as the  location  is yet to be provided by the provincial administration.  The company  also has planned to build a new urea fertilizer factory in Bojonegoro, East Java with a total investment of Rp  5.4 trillion (US$ 600 million). An agreement has been signed with the Bojonegoro district administration on the  plan to build the factory  with a capacity of around 900,000 tons a year. Gas will be supplied by state oil and gas company PT Pertamina  from its Cepu block  in Bojonegoro.

TOWER BERSAMA WRAPS UP ACQUISITION OF INFRATEL. Telecommunication tower operator  PT Tower Bersama Infrastructure Tbk has wrapped up acquisition of the whole share of PT Mitrayasa Sarana Informasi (Infratel), an independent provider of telecommunication towers. Tower Bersama's finance director Helmi Yusman Santoso  said the acquisition  cost around Rp 200  billion.  Helmi said Infratel has towers in 263 locations,  332 site shelter-only,  and  around  672 lessees. Tower has 5,381 lessees and 3,610 towers. Meanwhile, Tower Bersama  said it  was negotiating acquisition of 4,000 units of telecommunication towers of  PT Indosat. The company  was  still in talks with Indosat  on possible  acquisition of the towers  worth  an estimated US$ 500 million, Helmy said.  Tower Bersama is ready with fund to pay  for the acquisition, Helmy said, adding it has US$ 120 million  in capital expenditure and US$ 2 billion in standby loan.  Indosat, which is controlled by Qatar Telecom (Qtel)  has indicated it wanted to sell 14,000 units of its telecommunication towers. The country's second largest telecommunications company needs funds to repay debts, which were estimated to total Rp 23.95 trillion by the end of the first quarter of this year. Its president Harry Sasongko Tirtojondro has said asset sales  could  make the company healthier  financially.

KALBE TO SPEND US$ 222 MILLION FOR EXPANSION  IN THREE YEARS. Indonesia's largest pharmaceutical company Kalbe Farma  said it plans to spend up to Rp 2 trillion (US$ 222 million) in the next two to three years.  This year  the capital spending is around  Rp 650 billion including for  the construction of  a new factory to produce anti cancer medicine  in Pulo Gadung, Jakarta, and expansion of distribution systems. Next year spending is around Rp 700 billion including for two new factories one to be built in Cikarang and another  abroad in  a Southeast Asian country, company's corporate secretary Vidjongtius said. The company has enough fund to build the projects  without  using loans, Vidjongtiis said. In the first half of this year the company and its subsidiaries posted  Rp 675 billion in net profit , or an increase of 18% on-year.

CORPORATE NEWS IN BRIEF
June2011
MONTHLY REPORT
INDONESIAN COMMERCIAL NEWSLETTER (ICN)
 
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