1. BAKRIE TELECOM TO EXPAND ESIA TO BANDUNG.

PT Bakrie Telecom will expand the coverage of its cellular phone technology dubbed "Esia", which was based on Code Division Multiple Acces (CDMA) 2000 1X, to Bandung, West Java province, in March 2004.
"After covering Jakarta and environs, we will expand the Esia coverage to Bandung scheduled in March," said President Director of PT Bakrie Telecom Anindya Bakrie. He explained that Bandung was Esia's next target after Jakarta, as the West Java provincial capital has a potential market.
He said that his side has built 10 Base Tranceiver Systems (BTS) which was assumed to be sufficient for the region, while gradually continuing the strengthening of the signal in Bandung, Jakarta and the surrounding areas.
Asked about the market segment of Esia, Anindya said his side has not limited the market segment of certain classes of people. However, he admitted that most Esia's subscribers at the moment are people belonging to the upper-middle class.
"At the moment we have about 432,000 subscribers in Jakarta and environs, and Banten. We are still continuing to expand Esia's coverage so that Esia can be accepted in wider regions," he said.
According to him, Esia is focused on Jakarta and Banten, as the population of these provinces accounted for 40 pct of the total population of the country, and 70 percent of the national cellular telephone subscribers.

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2. IRAN TO CONSIDER IMPORTING MOTORCYCLES FROM INDONESIA - BUSINESSMAN.

Iran will look into the possibility of importing motorcycles from Solo, in Indonesia's Central Java province, as the quality of Indonesian motorcycles is better than those produced by China and Japan, a businessman has said.
"The chiefs of a number of Iranian companies will visit Indonesia in the near future," president director of PT Dayang Motors, Lukas Jayadi, said.
Lukas said he has negotiated with officials of three Iranian companies interested in Indonesian motorcycles.
"If the import pushes through, we would send the motorcycle parts for assembly in Iran," he said, adding that the price of Indonesian motorcycles is 10 percent less than Chinese-made motorcycles.
Dayang Motors produces 1,000 to 2,000 motorcycles per month but it has the capability to expand its capacity to produce 5,000 to 10,000 motorcycles per month, Lukas said.
"The company, which is based in Solo, has exported its products to the United States and Mexico," he noted.
Some 25 percent of the spare parts used by Dayang Motors is produced by the company while the rest are from the suppliers.
Dayang Motors' motorcycles are popular in the islands of Java, Sumatra, Sulawesi and Papua, he said.

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3. CENTRAL JAVA TO JOIN INDONESIA SOLO EXHIBITION IN UAE.

The Central Java provincial administration will take part in the Indonesia Solo Exhibition (ISE) 2004 to be held in Sharjah, United Arab Emirates (UAE) this September, a local official said.
"The exhibition is one of our efforts to gain market access abroad," head of the provincial industry and trade office, Sukaton, said after launching the ISE 2004 here.
In the ISE 2003, the office booked Rp10 billion worth of business transactions, he said.

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4. BUSINESS IN INDONESIA HAS BEEN REVIVED, VEEP SAYS.

Business in Indonesia has been revived and this would be a good momentum for the Indonesian Chamber of Commerce and Industry (KADIN) to put the economy back on track, Vice President Hamzah Haz has said.
"Through its associations, KADIN should be able to boost business and give inputs on how the banking industry should carry out its task," Hamzah said when opening KADIN'S 6th national meeting.
The government, he said, has asked banks to earmark Rp3 trillion in loans which the people could avail of. Commenting on KADIN chairman Abu Rizal Bakrie's statement that only 50 percent of the Rp800 trillion worth of bank loan has been disbursed, Hamzah said, "The amount should be increased."
He said Indonesia's macroeconomy is stable in terms of inflation rate, bank interest rate, foreign exchange rate, and foreign exchange reserve.
He further noted that in the past four years, government revenues from taxes were higher compared to 40 years ago.
"For 40 years, state revenues from taxes only reached Rp600 trillion. In the past four years however, the amount increased to Rp700 trillion, meaning that business must have been revived," he added.
He also called on state banks to show entrepreneurship and not only rely on government intervention.
"State banks have to be able to read and analyze the business world," he said.

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5. JASA MARGA TO BUILD TRANS-JAVA TOLL ROAD.

Indonesia's state toll road operator, PT Jasa Marga, will build a toll road that will link Merak district in Baten province to Banyuwangi district in East Java province this year, an official has said.
"The government, through the Resettlement and Regional Infrastructure Ministry, has agreed to support the building of the toll road," Jasa Marga secretary, Hengki Herwanto, said.
The toll road will stretch from the western tip to the eastern tip of heavily populated Java island.
Jasa Marga and the government have recently met to discuss an investment scheme on the construction of the toll road, he said.
"At least, the government has guaranteed the loan to be used to build the toll road," he said.
The Trans-Java toll road will be built middle of this year after the resumption of the Jakarta Outer-Ring Road (JORR) and the Cipularang toll road development projects, he said.
The JORR and the Cipularang toll road development projects are still at the bidding process, he said.
The first part of the Trans-Java toll road, which is 150 km long, will be built from Cikampek subdistrict to Cirebon district in -West Java, he said.
The Trans-Java toll road will cost of Rp80 trillion, he said.

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6. OPEC COULD AGAIN REDUCE PRODUCTION IN MAY, INDONESIAN MINISTER SAYS.

The Organization of Petroleum-Exporting Countries (OPEC) could again reduce its production level in May, if the reduction of 1 million barrels per day (bpd) in April is inadequate to maintain the price level, an Indonesian minister has said.
"If the reduction in April is not enough, the organization will further reduce it in May," Mines and Energy Minister Purnomo Yusgiantoro said at the state palace.
OPEC still wants to maintain oil prices at US$22 to US$28 per barrel, he said before attending a limited cabinet session, to be chaired by President Megawati Soekarnoputri.
OPEC will likely hold a meeting if it is forced to reduce again its production in May, he said.
OPEC has been producing 27 million bpd for the past months, larger than its limit of 24.5 million bpd.

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7. MINISTER PROPOSES MORE INCENTIVES FOR INVESTORS IN OIL, GAS SECTOR.

Energy and Mineral Resource Minister Purnomo Yusgiantoro said that to attract investors in the oil and gas industry the Indonesian government should offer them more incentives.
"We need to create more stimuli, for instance, by changing the 70-30 profit sharing ratio in oil and gas exploration and production contracts. Then they (investors) will be attracted," Purnomo told reporters after attending a cabinet session at the State Palace.
The session was led by President Megawati Soekarnoputri and dwelled on policiesr in the oil and gas sector.
Purnomo said Indonesia still had plenty of gas reserves which were estimated to be worth some Rp130 trillion.
"I proposed to change the profit-sharing ratio because currently there is no 'lex specialis' in the oil and gas industry," the minister said.
It meant the oil and gas industry was no longer enjoying any privileges, for instance zero import duty for operational equipment.
To make up for the lost privileges, Purnomo said, the government should review the current profit-sharing ratio in oil and gas exploration adn production contracts with investors.
According to the minister, the government was also studying the possibility of subsidizing oil and gas prices for domestic industries, especially industries of vital importance to the national economy and absorbing huge workforces.
One such industry was the fertilizer industry which was often having difficulty obtaining gas, he said.

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8. INDONESIAN EMBASSY IN SINGAPORE TO PROMOTE INDONESIA SMEs.

The Indonesian embassy in Singapore will hold a dialog to promote the development of small- and medium-scale enterprises which will be held on Feb 19, the embassy said in a statement issued.
Some 100 members of the association of Small and Medium Enterprises, SPRING Singapore and Network Indonesia will attend the dialog, the statement said.
The event also aims to enhance ties between the two countries' businessmen.

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9. BRITAIN OPENS ENERGY INDUSTRY COUNCIL OFFICE IN JAKARTA.

The British government opened a representative office of the Energy Industry Council (EIC) here and will open similar offices in other cities in Indonesia, its embassy has said.
The council is the biggest trade association in oil and gas and consists of companies engaged in goods and services for the two sectors, the embassy said in a press release issued.
The EIC is planning to open representative offices in Palembang (South Sumatra), Balikpapan (East Kalimantan) and Surabaya (East Java) in the near future, the release said.
The offices will act as a bridge between local companies and small- and medium-scale companies in Britain.

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Indonesia has to boost its economic growth by up to six percent in order to create new jobs for two million people and to alleviate poverty, an ILO official said.
ILO public relations officer Gita Lingga said. Indonesia also had to invest to public infrastructure by using approachment base on labor and to maintain policy environment which was friendly to Small Medium Enterprises (SME's).
Quoting a new report from ILO about Poverty Reduction Strategy Paper (PRSP), titled "Freed from Poverty: ILO Input to Indonesia's PRSP" Gita said the document was ILO's contribution in alleviation of poverty in Indonesia.
"This recommendation emphasiszes the importance to put employment problems as a central theme from strategy of poverty alleviation in Indonesia,"Gita said.

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11. IRAN OFFERS US$30 M IN EXPORT CREDITS TO RI .

Iran has offered US$30 million worth of export credits to Indonesia to increase economic and trade relations between the two countries, an Indonesian minister said.
"I will encourage ASEI (PT Asuransi Ekspor Indonesia) to take it," Indonesian Trade Minister Rini Suwandi said after meeting with Iranian Trade Minister Mohammad Sharia Tmadari.
She said Indonesian businessmen and PT ASEI as a state enterprise had to take the offer.
Minister Rini and her Iranian counterpart had discussed various efforts to increase the two countries' bilateral relations.
Minister Tmadari had suggested the establishment of joint ventures in textile, textile product, oil and gas, petrochemical and tourism industries. In response to it, Rini said, Iran was a cotton producer and Indonesia, which does not grow cotton, could benefit from this fact and use the cotton to make textiles and garments.
Rini said an Iranian offer to cooperate in the field of petrochemical industry was possible considering that Iran had produced a lot of crude oil and half-finished oil products and therefore must wish to extend its downstream industries.
To promote trade and economoc cooperation between the two countries, she said direct air links and shipping services needed to be opened, adding that so far the two countries had been using the United Arab Emirates (UAE0 for the purpose.
The value of Indonesia's exports to Iran in 2003 reached US$180 million or up from the previous year whwn rgw figure was US$140 million.
Its imports from Iran, however, were down from US$60 million to US$30 million in the period.

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12. INDONESIA NEEDS RP 77 TRILLION TO CONSTRUCT TOLL ROADS - MINISTER CHECKED BY CL.

The Indonesian government needs some Rp77 trillion to build toll roads across the country, Minister for Resettlement and Regional Infrastructure Soenarno said.
"In our attempt to speed up the country's economic growth, we need some Rp77 trillion to construct 1,486 km of toll road in the next five years," Soenarno said during a hearing with the House of Representatives' transportation and infrastructure commission.
The minister noted that the strategic advantage of constructing toll roads is to open job opportunities nationwide.

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13. KADIN TOLD TO GIVE GREATER CONTRIBUTION TO ECONOMIC POLICIES.

The Indonesian Chamber of Commerce and Industry (Kadin) has been urged to play a bigger role in deciding the direction of national economic policies, and function on equal footing as a government partner withoug losing its self-sufficiency.
The statement was aired by Kadin general chairman candidates Suryo B Sulisto, Cicip Sharif Sutardjo, and Mohammad S Hidayat, on the sidelines of the organisation's fourth national congress in Jakarta.
"Kadin must become a partner of the government in the formulation of economic and business policies, as Kadin whose members are businesspeople, is indeed used to dealing with such matters," said Suryo, Kadin chairman in charge of trade, tourism, and investment promotion.
In this way, he said, the members of the business community serve as a spearhead of the national economy in the development of investment and business with a view to reduce unemployment.
Therefore, he added, the regional chambers must also sit together with the policy makers in their respective regions, like the governors, regents, mayors, and local legislative assemblies, in formulating economic and business policies for their regions.
"Kadini must also develop into an increasingly dignified organization to be reckoned with at national as well as international level to lure international businesses to invest in our country," Suryo said.
A statement to a similar tune was also expressed by Cicip Sharif Sutardjo, that Kadin must function as a government partner on equal footing, and not dictated in the development of a strong and professional organization.
He said being near to the government on equal footing to work together in the development of the state's economy did not mean that Kadin will lose its self-reliance.
"Kadin must remain self-reliant, efficient and professional, and cooperate with all elements of the business world for the sake of better business in Indonesia and boosting the national economic development," he said.
Cicip, Kadin chairman for telemathetics, post and the mass media, expressed readiness to carry out any decision of the national congress, such as evaluating the performance of Kadin's management each year or once in everty two years.
In the meantime, Mohammad S Hidayat said Kadin is a full partner of the government in the true sense of the term. "Kadin will support the government in the development of the economy, the real sector, work as hard as possible in a businesslike and professional way."
The Kadin chairman in charge of property, construction and consultancy services, also said that Kadin is not an organization for increased protection, but will boost the efficiency of the national economic system without in any way sacrificing the national economy and the national interest.
"It is only in this way that Kadin and the business community in general will enjoy functioning as a creative partner of both the central government and regional administrations," he said.

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Indonesian bankers expect the Indonesian Chamber of Commerce and Industry (Kadin) to devise a company rating system and determine the direction of companies' business development as a basis for banks to consider the extension of credits to the real sector, a spokesman said.
Bank Indonesia (BI, the cnetral bank) Governor Burhanuddin Abdullah said here Wednesday Kadin's recommendations about which businesses and industries needed to be developed woiuld make it easier for the monetary authority and banks to issue corpproate loans.
Meanwhile, Bank Mandiri Presdient Director ECW Nelloe said Kadin should rate companies and the ratings would serve as an information base about their creditworthiness.
"Based on the rating, we can make it as a recommendation to give credit," he said.
He admitted the intermediation function of banks was currently not being performed to maximum extent as the investment climate was still not conducive and banks were still in atrauma over the monetary crisis of 1997.
"Therefore, Kadin and bankers have to cooperate closely so that bankers can support the enhancement of the real sector's performance," he said.
Meanwhile, Kadim Chairman Aburizal "Ical" Bakrie said the Chamber would follow up the good idea and pass it on to its new executive board.
He said Kadin would encourage and ask the government to revive its former cooperative relationship with Kadin in making industrial policies.
Aburizal said after the government had determined that a certain sector, for instance, the crude palm oil (CPO) industry, needed to be developed, banks would allocate more credits to the sector.
The Kadin chief said the company rating proposal had to be followed up by the new Kadin executive board by forming a professional rating institute.
The institute would determine the ratings of companies which would serve as reference for banks in considering their applications for credit. Companies with a good rating could be given a low interest rate.

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Economic ties between Indonesia and Poland will focus on increasing Indonesian exports to the Eastern European country, an Indonesian official said.
"We will try to increase our exports (to Poland)," head of the Indonesian Chamber of Commerce and Industry's foreign affairs section, Jaka Singgih, said after attending a meeting of the Indonesia-Poland Economic Forum.
Visiting Polish President Aleksander Kwasniewski and Indonesian Coordinating Minister for Economic Affairs Dorodjatun Kuntjoro-Jakti attended the meeting.
"Indonesia will step up its exports of natural rubber, coffee, tea and spices to Poland," he said, adding that the country will likely export textile and food as well to the European state.
"If this happens, Indonesia would no longer be dependent on the United States market," he said.
Although Poland is only a medium-sized market, Indonesia sees the potentials to market its products there, he said.
Indonesia, Jaka said, will encourage Poland to invest in coal mines.
"Poland has advanced coal mining technology," he said.

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The foreign exchange reserve in the third week of February 2004 amounted to 36.27 billion US dollars, a decline compared to 55.20 million dollars in the previous week.
Bank Indonesia disclosed in Jakarta on Thursday that the decline was the result of the payments of government debts.
In the meantime, the primary money on February 20, 2004, reached Rp 139.25 trillion, a decline of Rp 3.85 trillion compared to on February 13, 2004.The drop was caused by seasonal factors in the third weeks of each month.
Then, net claims to the government increased by Rp 6.47 trillion and reached Rp 186.84 trillion, among others caused by payments of foreign debts and government bond coupons.
In the meantime liquidity credits remained unchanged, while Open Market operations had a contraction effect of Rp 9.92 trillion.
With the above developments, the net domestic assets (NDA) caused a contraction of Rp 3.60 trillion, and reached a negative Rp 29.23 trillion.

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17. INVESTMENT, EXPORTS CONSTANTLY BOOSTED DESPITE ELECTIONS.

Coordinating Minister for Economic Affairs Dorodjatun Kuntjoro-Jakti said the government will constantly try its best to lure more investors and boost exports despite the 2004 general elections.
"Amidst the general elections and tight competition in the international export market, it is still hoped Indonesia's exports would continue to increase," he said on the sidelines of a business gathering on investment in 2004, in Jakarta.
He believed that Indonesia's chances to boost its exports, both in volume and value, have increased in view of the difficulties faced by a number of rival countries in the supply of industrial raw materials and fuel oils.
"I have learnt that China is currently facing such problems in addition to demands for higher wages," Dorodjatun said.
He hoped Indonesia would immediately use this good opportunity, and the same should also be done by the next cabinet, as the incumbent cabinet will have to finish its job in October 2004.
He said it would not be too difficult for a country relying only on the domestic market and the people's consumption to reach a three to four percent growth. But to reach a six to seven percent growth, its exports must increase substantially," he said.
In 2004, he added, the government has to complete unfinished projects, including the Tanjung Jati B power plant, the Suramadu (Surabaya-Madura) bridge, in addition to 33 different toll roads.
Efforts of increasing investment include the law on foreign and domestic investment currently being handled, abolition of discrimination between foreign and domestic investment, no nationalization of assets, and reducing the negative list of investment.
In the meantime, chairman of the Capital Investment Coordination Agency (BKPM) Theo Toemeon said in 2003 approvals of foreign and domestic investment projects have increased significantly compared to those in 2002.
The number of foreign investment projects approved in 2003 increased by more than 200 pct, and that of domestic investment projects by more than 120 pct, respectively valued at 14 billion US dollars, and almost Rp 42 trillion.
"This rate of increase is the same as that achieved in 2000, during the change of government under President Habibie," Theo said.
He added that this favourable momentum must be maintained, by among other things the development of existing potentials, especially those in the regions.

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18. INDONESIAN IMPORTERS ASSOCIATION CRITICIZES PLAN TO ISSUE REGULATION TO BLOCK CHINESE PRODUCTS TO E JAVA.

E Java - The chairman of the Indonesian Association of Importers (GINSI) - East Java chapter, has criticized the provincial administration's plan to block Chinese products from entering and flooding the local market by issuing a regulation.
Bambang Trisulo told journalists that the move would result in business uncertainty and show that East Java is not yet ready for free trade.
"What we have to do is to increase our productivity and efficiency so that local products would become competitive (against Chinese products)," he said.
Head of the provincial industry and trade office, Cipto Budiono, recently remarked that East Java had last year suffered a deficit in its trade with China.
The trade deficit was estimated at US$100 million, as East Java's imports from China amounted to US$400 million while province's exports to China only stood at US$300 million.

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19. OVERSEAS DEMAND FOR INDONESIAN SHRIMP INCREASING .

Foreign demand for Indonesian shrimp, particularly in Europe and the US, recently showed an upward trend following the implementation of an anti-dumping policy by the European Union (EU) and US toward a number of shrimp exporting countries.
Johan Suryadarma, chairman of the East Java chapter of the Indonesian Coldstorage Companies Assosiasion said here Monday, the EU and US anti-dumping policies had affected a number of shrimp-exporting countries including Vietnam, China, Thailand, India, Equador and Brazil. The EU and US were refusing to import shrimp from them.
Therefore, he said, the EU and US had turned to Indonesia, one of the biggest shrimp exporting countries in the world, to meet their need for shrimp.
According to Johan, the shrimp price at the farmers' level, specially for "vanamea" type had gone up from Rp15,000 to Rp27,000 per kilogram.
He said the price increase was in line with the upswing in world demand and a recent 20-percent decline in domestic production.
According to Johan, Indonesia's shrimp production at the moment stood at about 100,000 tons per year with 90 percent of the figure being exported.
About 90 percent of the shrimp Indonesia is exporting consists of "vanamae" shrimp and the rest of "black tiger" shrimp.

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