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.