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MATAHARI SET TO CHALK UP RP9 TRILLION  IN INCOME  FROM  HYPERMART. The country's largest retailer PT Matahari Putra Prima Tbk has set  an income target at Rp9 trillion  from its hypermarket division called Hypermart. The company has  been aggressive in expanding its hypermarket business opening new outlet. It has opened 17 new outlets of Hypermart including a number in eastern Indonesia. Director of Merchandising and Marketing  of Matahari Food Business Meshvara Kanjaya said the target is in line with the 18% growth target for the number of Hypermart outlets. Meanwhile, Associate Director Planning & Development Matahari Putra Prima Deborah Rosanti said the company will focus more in expansion outside Java  without slowing expansion in Java. For that purpose the company has  set aside Rp 210 billion  - Rp 240 billion  this year to finance the opening of new outlets in eastern Indonesia, including in Ambon, Kendari, and  Kupang.

CHANDRA ASRI SETS ASIDE US$1.2 BILLION FOR EXPANSION. PT Chandra Asri Petrochemical Tbk (CAP), the country's largest upstream petrochemical  company has set aside US$ 1 billion  - US$ 1.2 billion  to  finance expansion of business in  downstream petrochemical  sector . Industry minister M.S. Hidayat  said the company is set to strengthen its petrochemical business in the downstream sector to meet  growing demand in the domestic market such as for polypropylene and  polyethylene. Expansion by Chandra Asri in downstream petrochemical will begin by building a new factory  to produce butadiene , a basic material needed by tire industry. Chandra Asri will provide  from US$100 million to  US$ 300 million for that plan.  The  project will be handled by a Chandra Asri's subsidiary PT Petrokimia Butadeine Indonesia (PBI). PBI has set aside around US$ 100 million to build the factory  with a production capacity  of  100,000 tons per year. The factory will be built over a 40,000 sq.m. plot of land  in the complex of Chandra Asri  in  Cilegon, Banten. Chandra Asri also plans to   develop  polypropylene   industry and build an LNG terminal.

INDORAMA THAILAND WRAPS UP ACQUISITION OF TWO INDONESIAN COMPANIES. Indorama Ventures Public Company Limited, a producer of  polyester  and wool based in Thailand have acquired two Indonesian companies SK Keris  and  SK Fiber - located in Tangerang (Banten) and Karawang (West Java respectively. The Group's  CEO and founder of  Indorama Aloke Lohia said after the completion of the process of acquisition on 6 March, 2011, the name of SK Keris  was changed with PT Indorama Ventures Indonesia. It has a an annual production capacity  of 160,000 tons of  PET (polyethylene terephthalate) resin and polyester filament yarns. The name of SK Fiber was changed with PT Indorama Polyester Industries having a production capacity of 36,000 tons of polyester filament  yarns per year. Acquisition of the two companies  followed the take over by the Thai company of  a stake owned by SK Chemicals of South  Korea  in SK Eurochem Sp.z.o.o., Polandi  and SK Keris  and its subsidiary SK Fiber.

BOSOWA TO INVEST US$300 MILLION TO EXPAND CEMENT PRODUCTION CAPACITY. PT Semen Bosowa increased investment by US$ 300 million to expand its production capacity to 5 million  tons per year before 2014 prompted by growing cement demand on the domestic market. The CEO of Bosowa Corporation Erwin Aksa  said the production capacity of the company will rose to 5 million  tons per year after the expansion of its  factories in Maros  and  Banyuwangi, East Java. Erwin said the capacity expansion  with  the building of  second production units in Maros would cost US$ 200 million. The construction of cement meal plant in Banyuwangi units will cost US$ 100 million. The new units will increase the production capacity of Semen Bosowa Maros  to 2.5 million  tons from 1.6 million  tons  at present. Meanwhile, Semen Bosowa Batam, currently has an annual production capacity of  1.2 million  tons  will be increased to 1.8 million  tons. The cement meal plant in Banyuwangi to be built this year will have a production  capacity of 1.2 million  tons per year. Bosowa also is building  an international standard hospital  this year.

CIPUTRA TO INVEST  RP 7 TRILLION. Ciputra, a property businessman plans to set aside Rp 7 trillion this year  to finance business expansion in the property sector to be carried out by his three business units. The fund will be used to implement 10 residential projects  in Java, Sumatra and  Sulawesi. The three business units will build their projects in various areas including Bali, Pekalongan, Pekanbaru and Kendari. The three units to carry out the projects are Jaya Group, Metropolitan Group  and Ciputra Group.

MERUKH ACQUIRES OIL FIELDS IN THE UNITED STATES. Merukh Enterprise has acquired oil and gas fields  from the Whitehead  family in Buna, Texas, and the United States at a price of US$5 billion. Merukh Enterprise's president and CEO Rudy Merukh said 100 oil wells in the field have proven reserves totaling 30 million  barrels.  With oil price of around US$100 per barrel, the reserve would be worth US$ 3 billion.  The field also produces gas  to be supplied to gas industry in New Jersey. The  value of gas production   from the wells is  estimated at US$ 2 billion. The wells are located in the formation of Willcox, in the border  area between Texas  and  Luisiana. hat area is known to have oil reserves, Rudy said. Under the  acquisition agreement, the Whitehead  family  will remain the operator .  Mereukh Enterprise has the first right to buy (first right of refusal) and to take part in any new oil discovery by Whitehead  family. Meanwhile, the Managing Director for Finance  of Merukh Enterprise Janny Utami  said the company will launch IPO floating shares in the Singapore  and Australia's Stock Exchanges.

SARATOGA READY TO ACQUIRE IFORTE. Saratoga Capital, an investment fund manager that owns 25.83%  of PT Tower Bersama Infrastructure Tbk plans to acquire 55% of PT iForte Solusi Infotek Managing Director of Saratoga Sandiaga Uno confirmed his company will acquire iForte, which is a wireless-based information technology company, currently having solution to broadband networks  and Internet service  to all corporate subscribers in Jakarta  by using optic fiber cables  already installed  in all main streets  in Jakarta. The plan is  this year, iForte  will build 1,000 units of  micro BTS (base transceiver station). Meanwhile, Saratoga will set aside Rp 1.5 trillion in investment in telecommunication infrastructure until the end of this year. The plan is prompted by growing business in  renting out  units of BTS. The fund will be used to build new units of BTS  including in Java  and Bali.

AZKANOBEL EXPANDING PAINT PRODUCTION CAPACITY IN INDONESIA. Azkanobel, the world's largest producer of paint and color protector, will invest 10 million  euro to expand its production capacity in  Indonesia. Earlier or in 2008, Azkanobel  wholly  acquired PT ICI Paints (ICI), the producer of paints with the brands of Dulux  and  Catylax. Regional Managing Director for Decorative Paints  of Azkanobel  for Southeast Asia  and Pacific Jeremy Rowe said the additional capacity is needed  to keep pace with growing demand in Indonesian  market. The market demand in the country  grew 22%  last year  or about the same as in other Asian countries. Earlier Azkanobel invested 50 million  euro to optimize  and improve the efficiency of its factory  in Indonesia. Apart from taking control of ICI, which produces decorative paint, Azkanobel also has a factory producing industrial coating, car refinish  and pulp factory  and chemical paper  in Indonesia.

MOBILE-8 & SMART WRAP UP MERGER PROCESS. Finally merger took place between PT Mobile-8 Tbk  and  PT Smart Telecom Tbk to form a new company named SmartFren Telecom Tbk. The merger  was  sanctioned the  shareholders of PT Mobile-8 in a meeting. The use of the name was approved by the minister of justice and  human rights. Corporate secretary of the new company Chris Taufik said  the company will be headed by Rudolfo Pantoja  as the president  replacing Merza Fachys, formerly president of PT Mobile-8 Tbk. Earlier in its expansion plan, PT Mobile-8 Tbk planned to build 1,500 - 2,000 new units of  BTS (base transceiver station)  this year  for which it planned to set aside  Rp 2 trillion. The  investment fund was to be derived from the fund of Rp 3.7 trillion it raised in a right issue earlier.  After being acquired by the Sinarmas Group which is owned by  tycoon Eka Tjipta Widjaja, the company  with shares using the code of FREN planned to expand networks in new areas in Sumatra, Kalimantan and  Sulawesi.



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