POLITICS
President’s Vision for Iraq
Muslim nations should ultimately replace coalition forces in Iraq after a period of national reconciliation, Indonesian President Susilo Bambang Yudhoyono told a meeting of Islamic clerics on Tuesday (3/4/07).
Dr. Yudhoyono, who is keen to see Indonesia take a bigger role in global issues and in particular in the Middle East, first floated his proposals on Iraq at a joint news conference with US President George W. Bush last November in Bogor.
"The spiral effect of violence has dreadfully eroded the national tradition of religious tolerance and mutual respect. This is not the natural state of affairs between the Sunnis and Shiites of Iraq," he said in a speech to about 20 clerics from around the world gathering at the Bogor presidential palace to discuss Iraq.
"The first and most vital track in this proposed solution is the launching and unrelenting pursuit of reconciliation," he went on. "Once the national reconciliation is achieved, the second track is the withdrawal of the coalition forces replaced by a new coalition of forces comprising of like-minded Muslim countries.”
Dr. Yudhoyono also joined Pakistan President Pervez Musharraf in January in backing a new Muslim initiative to resolve turbulence and violence in the Middle East.
Wrapping up their meeting on Wednesday, the 20 Muslim clerics called for the withdrawal of US troops from Iraq.
Dr. Yudhoyono hosted the gathering aimed at encouraging reconciliation in Iraq as part of efforts to see Indonesia take a bigger role in global issues and in particular in the Middle East.
Hasyim Muzadi, leader of Indonesia’s 40 million-strong Muslim organization Nahdlatul Ulama, admitted the "the road ahead is long.”
"This international conference is only at a mapping stage in which there was a collective will. It is still useful because we came to the same vision," he told a news conference.

President Appoints More Advisers
President Susilo Bambang Yudhoyono has named a number of senior politicians and former high-ranking officials to sit on his newly-formed presidential advisory council.
Presidential spokesman Andi Mallaranggeng said on March 31 that the president had issued a decree appointing former senior officials as members of the nine-strong council.
"The president has issued a decree appointing them and an inauguration of their membership is expected soon," Mallaranggeng told The Jakarta Post.
He said that council members were expected to advise the president on a wide range of issues, including domestic politics, foreign affairs and the economy.
A document dated March 26, said the members include Ali Alatas, the foreign affairs minister in the Suharto and B.J. Habibie administrations, former minister Emil Salim (environment and sustainable development) and Rachmawati Sukarnoputri (political issues), the daughter of founding president Sukarno and younger sister of former president Megawati Sukarnoputri.
Also making up the council are senior economist Syahrir (economic issues), Indonesian Ulemas Council (MUI) member Ma'ruf Aminm (religious affairs) retired general T.B. Silalahi (defense and security), prominent lawyer Adnan Buyung Nasution (legal issues) and the former chairman of Yudhoyono's Democrat Party, Subur Santoso (sociocultural issues). The list is completed by former Makassar-based Hasanuddin University rector Radi Gany, who will advise on agricultural issues.
The House of Representatives passed a law authorizing the formation of the advisory council in December 2006.

Indonesia-India Security Agreement Implemented
The Defense Ministry announced on Monday (2/4/07) that a security agreement between Indonesia and India, previously ratified by the House of Representatives, has now come into effect, paving the way for the joint production of military equipment.
Ministry spokesman Brig. Gen. Edy Butar Butar said President Susilo Bambang Yudhoyono had issued a decree implementing the accord.
"We are now discussing the establishment of a joint committee to implement it,” he said.
“The committee, which will be chaired by the secretary general of both defense ministries, will decide on the areas of cooperation to be pursued.”
Butar said that possible areas of cooperation could include human resources training, the exchange of officers, joint border patrols, and fighting terrorism and sea piracy.
The Foreign Ministry's director for South Asia, Asruchin, said the agreement would become the legal basis for Indonesia to procure military equipment from India and embark on joint ventures for its production.
"Besides raising security cooperation between Indonesia and India, the agreement will also help enhance security in the region," he said.
Military analysts have said that the agreement would help the development of the local defense industry and create opportunities for the transfer of technology between the two countries.
India is a licensed manufacturer of Russian military hardware, including Sukhoi jets which Indonesia has recently added to its inventory.
Military think tank ProPatria Institute director Hari Prihatono said India could offer a model for the development of local industries with companies like PT Pindad, PT PAL and PT Dirgantara Indonesia as potential beneficiaries.
India welcomed the ratification of the agreement, saying it was of great significance, coming soon after the "New Strategic Partnership" declaration signed by Indian Prime Minister Manmohan Singh and President Yudhoyono.
"With the important role being played by the two maritime neighbors in regional security, the defense agreement, which is now effective, will enable a significant increase in bilateral defense and security ties," the Indian Embassy in Jakarta said in a statement on March 31.

Playboy Editor Cleared of Indecency
The South Jakarta District Court on Thursday (5/4/07) cleared the editor of Playboy Indonesia of distributing indecent pictures to the public and profiting from them after a high-profile trial that exposed deep divisions in Indonesian society, Reuters reported.
Editor-in-chief Erwin Arnada had argued the magazine was good for developing a pluralistic society, while the prosecution and Islamic hardliners who have regularly attended his trial said he had "harmed the nation's morals.”
Presiding judge Efran Basuni said the prosecution's arguments "could not be accepted" and "were not diligent" because they failed to take account of Indonesian media laws created after the 1998 downfall of President Suharto's regime that ushered in press freedom.
More than 200 Islamic hardliners, guarded by hundreds of policemen with water cannon standing by, attended the trial.
The magazine's first edition sparked protests in Indonesia last April although it had no nudity and less flesh visible in the issue than many other magazines on sale in Indonesia.
Subsequent editions of the magazine are still on sale in Indonesian cities despite attacks on its Jakarta office after the April launch. There has been no government move to ban it.

REGIONS
Bird Flu Death Toll at 74
Indonesia's human death toll from bird flu has risen to 74, prompting the government to state that it must intensify the fight against the virus after a spate of fatalities, an official said Friday (6/4/07).
A 29-year-old man from Sukoharjo, Central Java died at a hospital in Solo on Thursday after a week of treatment. A health official said he had contact with his neighbor's chickens which died suddenly.
Indonesia's national bird flu center said earlier Friday that the disease had killed a teenage girl in the capital, Jakarta.
There have now been 74 deaths from 94 confirmed human infections, a statement from the National Committee for Avian Influenza Control and Pandemic Preparedness said.
"Much has been done in the battle against the deadly virus, but the war is far from over and we must re-double our efforts this year," Agence France-Presse quoted Bayu Krisnamurthi, the committee's chief executive, as saying.
"We had hoped that this day would never come," Krisnamurthi said. "The government, along with UN agencies, NGOs and other groups has been working throughout the country to try to stop the spread of the virus and stop it from infecting people, but it is an enormous task," he said.

Airports Confiscate Liquids, Aerosols
A number of international airports in Indonesia confiscated liquids, aerosols and gels from passengers since the implementation of stricter cabin baggage limits last month.
The airports included Jakarta’s Soekarno-Hatta, Ngurah Rai in Bali and Polonia in Medan, North Sumatra. At Soekarno-Hatta, security officials confiscated a total of 30 bags of banned substances.
Soekarno-Hatta airport security coordinator Agus Kuswoyo told The Jakarta Post Tuesday (3/4/07) that the confiscations had been necessary because passengers were carrying more than the permitted 100 milliliters per item of liquids, aerosols and gels.
As of March 31, the airports implemented enhanced rules on cabin baggage. Creams, lotions, oils, perfumes, sprays, gels and the contents of pressurized containers must be carried in containers of 100 milliliter capacity or less. Liquids carried in containers larger than the maximum limit are not accepted, even if the container is only partly filled.
The containers must be packed in a single transparent re-sealable plastic bag of no more than one liter capacity per passenger. Kuswoyo said security had been amassing eight sacks of confiscated items a day on average since the regulation was enforced.
Indonesian Transportation Society chairman Bambang Susantono told the Post that stricter security regulations on carry-on items for flights should not cause undue delays. "If people are already aware of the procedures then there won't be any delays," he said.

12 Christians Tried for Poso Murder
Twelve Christian men went on trial at the South Jakarta District Court on Tuesday (3/4/07) for the murder of two Muslims in Poso, Central Sulawesi, and could face the death penalty if convicted.
Prosecutors told the court the defendants killed two traders at an illegal roadblock they set up on September 23, 2006, near Poleganyara village in East Pamona district, Poso regency  to protest the executions of Fabianus Tibo, Marinus Riwu and Dominggus da Silva a day earlier.
The 12 defendants are accused of stopping passing vehicles and demanding to see the identity cards of occupants. One of the vehicles stopped by the defendants was a cargo van driven by Arham Badaruddin, 40, and his assistant Wandi, 25. Prosecutors described how the defendants allegedly hunted down the two victims, tortured and killed them.
The defendants are accused of violating the 2002 Terrorism Law, as well as several articles in the Criminal Code on murder. They could be executed if convicted.
Judge Achmad Sobari adjourned the hearing until April 12, at which time the court will begin hearing from 10 witnesses called by the prosecution.

Govt. to Provide Billions in Disaster Assistance
The central government will allocate Rp700 billion to assist in earthquake recovery efforts in West Sumatra. Meanwhile, another Rp11 billion is allocated to rebuild homes of landslide victims in East Nusa Tenggara.
West Sumatra Governor Gamawan Fauzi told The Jakarta Post on Friday (6/4/07) a schedule for the disbursement of the funds would be discussed at the House of Representatives in Jakarta. The funds are covered by the 2007 state budget for natural disasters.
He said the province suffered losses of more than Rp1.6 trillion following the March 6 earthquake. From 11 mayoralties and regencies hit by the earthquake, only Agam regency is still at emergency status. The remaining regions have officially entered the recovery phase.
"The central government has agreed to provide Rp700 billion in assistance. The government has a Rp2 trillion budget for natural disasters, but since the fund is also being used to assist other disaster-hit areas, landslide victims in Manggarai, East Nusa Tenggara, West Sumatra, will receive Rp700 billion for the first phase," he said.
He said the Rp700 billion channeled by the central government would be used to restore educational facilities and housing for quake victims. The owners of some 4,000 badly-damaged houses will receive Rp15 million in cash assistance.
Meanwhile, the government also said it will build 1,736 houses for residents affected or threatened by landslides in Manggarai regency.

ECONOMY
World Bank Sees Higher Growth
The World Bank says Indonesia can achieve growth of 6.3%, after earlier saying it expected only 6% growth, and says 2008 could see growth of up to 6.5%.
At a press conference in Jakarta on Thursday (5/4/07) to launch the bank’s East Asia & Pacific Update, lead economist William Wallace said: “Indonesia is one of the few emerging East Asian countries whose growth rate is expected to pick up to 6.3% in 2007 as fiscal and monetary policies provide a boost.”
He said the upward trend began in the second half of 2006 led by a pickup in private consumption and investment, with exports also exceeding $100 billion for the first time last year.

Debt to GDP declined significantly to 41% while international reserves rose from $35 billion in 2005 to $43 billion in 2006, Wallace said.
Finance Minister Sri Mulyani Indrawati, meanwhile, put Indonesia’s chances of achieving its budget target at only 50%. "What's the probability?  I guess it's still 50/50 for us to get to the 6.3%," she told reporters, according to Reuters.
Indrawati was commenting following Bank Indonesia’s (BI) decision to keep its benchmark rate at 9.0%. She said the government would be working hard to balance demand pressure and price pressure on commodities, in order for BI to be able to cut its rate lower.
The BI decision not to cut rates further was made because of inflationary fears, said Governor Burhanuddin Abdullah.
Coordinating Minister for Economic Affairs Boediono said the government was planning to push more funds into infrastructure development in next year's budget in an effort to reduce production costs caused by transport bottlenecks.
Boediono said that the government plans to increase spending on infrastructure by 34% to Rp56 trillion ($6.2 billion) next year from Rp41 trillion this year. 
Boediono stressed that while infrastructure spending would account for the biggest increase in budget spending, human development would also remain a top priority.

Indicators 2007:

Source: Central Bureau of Statistics
* Bank Indonesia estimate

BUSINESS BRIEFS
BI Leaves Benchmark Rate Unchanged
The central bank on Thursday (5/4/07) left its benchmark one-month interest rate unchanged at 9%, belying a widely expected 25-basis point cut.
Bank Indonesia (BI) cited rising inflation expectations as the main reason for the pause.  The rate would be cut if such expectations ease, it said.
"The 9% rate reflects our neutral stance," BI Governor Burhanuddin Abdullah was quoted as saying by Dow Jones Newswires.
Abdullah said that the central bank still expects the rate to fall to about 8.5% by the end of the year as it is still optimistic that on-year inflation will be between a targeted 5% and 7% by the end of the year.
The headline inflation rate accelerated to 6.52% in March from the same month last year, compared to 6.3% in February.  On month, however, the rate slowed to 0.24% from 0.62% in February.  Inflation for the year's first quarter stood at 1.91%.
Core inflation, which excludes volatile food prices and administered fuel prices, was recorded at a monthly 0.17%, and an on-year 5.87%.
Central Bureau of Statistics (BPS) director Rusman Heriawan said there had been an across-the-board rise in March's consumer price index (CPI), although the price of the country's main staple, rice, is causing less concern.
"Rice prices are now giving rise to weaker inflationary pressures.  We are seeing prices stabilize, and even fall slightly," he was quoted as saying by The Jakarta Post.
Abdullah also said Thursday that the economy likely grew 5.4% on year in the first quarter, driven by investment and exports.  He expects the economy to expand between 5.5% and 6.3% this year and between 5.7% and 6.7% next year.  The economy grew 5.5% last year.

Still Room for Rate Cuts: Minister
Indonesia still has room left to cut interest rates, Finance Minister Sri Mulyani Indrawati said on Thursday (5/4/07), after the central bank surprised markets by leaving them unchanged.
The country also has an even chance of achieving its 6.3% economic growth target this year, Indrawati was quoted as saying by Reuters on the sidelines of a meeting of senior officials from the Association of Southeast Asian Nations (ASEAN).
"Assuming the US is keeping rates on hold, and if our inflation outlook is going to be much better, I mean lower, I think there is still room for Bank Indonesia to move further with a rate cut," she said.  "This really depends on the two factors."
Indrawati said BI's rate decision would hinge on its long-term inflation outlook, rather than monthly swings, but she cautioned that demand pressures are building up due to higher prices and a wider government budget.
The central bank's recent move to relax its rules on bank lending could put more pressure on inflation, but she pledged to help channel bank credit towards areas that are more productive.
"Bank Indonesia certainly expects the government to work harder to make sure that the demand pressure as well as the price pressure coming from commodity prices are not going to continue so that it can have room to reduce rates," she said.
The government's budget deficit for 2007 is likely to be 1.5% to 1.6% of the gross domestic product, she added.
She conceded that the government faces a tough task to achieve its 6.3% economic growth target for this year.  "What's the probability?  I guess it's still 50/50 for us to get to the 6.3%."

Q1 Tax Receipts Up 18% Yr-on-Yr
Tax receipts in the first quarter to March rose 18% year-on-year to Rp104.71 trillion from Rp88.62 trillion in the same period last year, a Finance Department official said.
Aekinus Manau told reporters that the tax receipts include Rp51.76 trillion worth of income tax, Rp36.16 trillion in value-added tax, and Rp11.42 trillion in excise taxes, XFN-Asia reported on Tuesday (3/4/07).
The government has targeted tax revenue of Rp509.46 trillion this year, up from Rp425.05 trillion last year.

T-Bills Issue Delayed to 3^rd Week
The Finance Department will delay the planned issue of the country's first treasury bills to the third week of April from April 3, a senior official said on Tuesday (3/4/07).
Indonesia plans to issue the bills with an initial volume of Rp3 trillion to Rp4 trillion ($330 million to $440 million).
The authorities expect the bills not only to help finance the state budget deficit and improve the management of the government's cash flow, but also improve liquidity on the short-end of the yield curve.
"The delay was because the taxation ruling and the department’s decree have not been finalized," Treasury Director General Rahmat Waluyanto told Reuters.
Waluyanto had said earlier the department plans to have a regular monthly schedule in issuing the bills, which will have a maturity of up to 12 months.

International Reserves Rise to $47.22b
Indonesia's international reserves rose to $47.22 billion at the end of March from $45.69 billion at the end of February, central bank data showed on Tuesday (3/4/07), according to Reuters.
Bank Indonesia (BI) said on its website that base money rose to Rp272.24 trillion ($29.86 billion) at the end of March from Rp270.11 trillion at the end of February.
Net claims on government dropped to Rp200.46 trillion from Rp234.87 trillion over the period.

INVESTMENT
Spending on Infrastructure to Rise
The government will allocate more money for infrastructure development in next year's budget in an effort to ease the distribution bottlenecks that have seriously hampered the country's economic growth.
"The bottleneck problem will become worse in 2008 if nothing is done to deal with the infrastructure issue," Coordinating Minister for the Economy Boediono said Wednesday (4/4/07), according to The Jakarta Post.
Boediono said that the government plans to increase spending on infrastructure by 34% to Rp56 trillion ($6.2 billion) next year from Rp41 trillion this year.  The Public Works Department and the Transportation Department would receive Rp34.3 trillion and Rp24.2 trillion, respectively.
The Rp56 trillion would include Rp7.03 trillion for the regions paid out of the Special Transfer Fund (DAK).
Boediono stressed that while infrastructure spending would account for the biggest increase in budget spending, human development would also remain a top priority.
Human development, which includes education and health, would receive some Rp83 trillion next year, an increase of about Rp7.9 trillion over this year's figure.  The human development allocation would therefore account for about 15% of the total 2008 budget spending, which Boediono estimated would amount to Rp554 trillion.
He said that the 6.8% growth penciled in for 2008 would be difficult to achieve if nothing is done to speed up the construction of infrastructure, such as new expressways and power plants.  "We have acute experience of these problems.  We lack electricity, expressways, ports," he said.

Saudi Prince Mulls Hotel Investment
Saudi Prince Alwaleed bin Talal bin Abdul Azis Al Saud, who is chairman of his country's holding company, has expressed interest in investing in Indonesia's hotel business.
Speaking to the press after meeting with President Susilo Bambang Yudhoyono at the latter's office in Jakarta last March 30, the prince said his company would like to invest in the hotel business first before entering other investment sectors.
"Hopefully, we can do something concrete within the next few months after things have been agreed on," he was quoted as saying by Antara.
The prince said it was too early to reveal the extent of the investment because the relevant negotiations were still underway, adding that an announcement would be made in the future.
The world's fifth richest businessman said the business climate in Indonesia would improve following the completion of the country's investment law, which is expected to make it easier for foreign parties to invest in Indonesia.

Saratoga to Invest $300m in Plantations
PT Saratoga Investama Sedaya said it will invest $300 million to expand its oil palm plantations in Indonesia to 100,000 hectares this year.
The investment will put the company, owned by Edwin Soeryadjaya and Sandiago Uno, among the 10 largest oil palm plantation companies in the country, Antara reported on Tuesday (3/4/07).
Saratoga director Husni Heron said the company recently acquired 8,000 hectares of oil palm plantations in Agam, West Sumatra for $30 million and 25,000 hectares in West Kalimantan for $70 million.
Meanwhile, PT Sinar Mas Agro Resources and Technology (SMART) director Rafael B Concepcion said the company will invest Rp1 trillion ($111 million) this year to expand its oil palm plantation by 15,000 hectares and increase the capacity of its palm oil refining facilities.
Concepcion said this year, the subsidiary of the Sinar Mas Group aims to chalk up a 20% increase in income from last year's Rp4.7 trillion.  Its production of crude palm oil is projected to increase 5% from 491,000 tons last year, he said.
Indonesia is forecast to increase its crude palm oil production to 16.8 million tons this year from 15.9 million tons in 2006, making it the largest producer replacing Malaysia, which is predicted to produce only 16.3 million tons this year.

STATE CONCERNS
Jan-Feb Tourist Arrivals Up 13.59%
Foreign tourist arrivals in the first two months to February rose 13.59% year-on-year to 639,937, with arrivals in Bali leading the increase, data from the Central Bureau of Statistics showed, according to XFN-Asia.
It showed that tourist arrivals via Bali's Ngurah Rai airport during the first two months, rose 47% year-on-year to 238,777.
The country's tourist industry has been hurt by a number of terror attacks in recent years, natural disasters and the high incidence of avian flu.

Rehabilitation for Barren Land
The Forestry Department plans to rehabilitate 2 million hectares of the country's arid and barren land per year, Forestry Minister MS Kaban said, adding that 55 million hectares of land was classified as arid and barren.
By rehabilitating 2 million hectares of arid and barren land per year, the government's arid and barren land rehabilitation project could be completed in 27 years, he was quoted as saying by Antara.
He said his department had set aside Rp4.2 trillion ($460.4 million) to rehabilitate land this year.
"To be able to make maximum use of the funds, we hope the public would actively take part in the planting of trees in deforested land areas," he said.
He said some 2 billion seedlings would be needed for the project.

SOEs
Telkom Puts 2006 Growth at 19%-24%
PT Telkom said its profit before interest, taxes, depreciation and amortization probably grew between 19% and 24% last year.
The company’s operating revenue grew between 19% and 25%, president director Rinaldi Firmansyah said, according to Bloomberg News.  The margin for profit before interest, taxes, depreciation and amortization was “slightly” more than 60%, he said.
Firmansyah did not provide figures.  “All are unaudited numbers,” he said in an analyst meeting. “We won't deliver our financial report on the March 31 deadline.”
The company's auditor needs more time to complete the audit, he said. Telkom posted a net income of Rp7.99 trillion for 2005 compared with Rp6.61 trillion for 2004.
Telkom benefits from rising sales at its mobile phone unit PT Telkomsel, which accounts for most of the revenue.  The unit's president director, Kiskenda Suriahardja, said on August 1 that it raised the growth target for new mobile phone users last year to 10 million subscribers from 8 million because of high demand in areas with low penetration rates.
Telkom plans to spend as much as Rp26 trillion on capital expenditure this year, Firmansyah added.  The amount is slightly higher than last year as about Rp3 trillion was carried over from last year's budget, he said.

Cement Giants Report Results
State-owned cement manufacturer, PT Semen Gresik, has reported hefty growth in net profit and sales for last year, despite lower overall demand.
The company said Monday (2/4/07) it had booked a total net profit of Rp1.3 trillion ($140 million) in 2006, about 29.3% higher than in the same period of 2005, when the equivalent figure was Rp1 trillion.
The significantly higher net profit was attributable largely to an increase in net sales from Rp7.53 trillion in 2005 to Rp8.73 trillion last year, and to an increase in operational income from Rp1.54 trillion to Rp1.78 trillion.
Despite last year's slower growth in domestic demand -- about 1.8% compared with 4.3% in 2005 -- Semen Gresik managed to boost its sales through effective marketing, as shown by 4.8% growth in domestic sales alone, finance director Cholil Hasan was quoted as saying by The Jakarta Post.
In 2006, domestic demand for cement reached 32.06 million tons, of which Semen Gresik supplied about 14.96 million tons. The company successfully increased its domestic market share to 46.9% from 45.4% in 2005.  Including exports, the company recorded total sales of 16.76 million tons, an increase of 2.6% from the 16.34 million tons sold in 2005.
Of the company's overall 2006 sales, 46.9% was accounted for by the company's own-brand sales, while subsidiary PT Semen Padang accounted for 33.2% and subsidiary PT Semen Tonasa the remaining 19.9%.
"The improved performance in 2006 was due to better synergies between all our subsidiaries, and our internal consolidation program," president director Dwi Soetjipto said.

After last year's robust performance, Semen Gresik is targeting an increase in total sales this year of 17.2 million tons on the back of an expected 4.6% increase in demand for cement, Soetjipto said.
Another cement giant, PT Holcim Indonesia, also reported its 2006 results on Monday, which showed that the company earned total sales revenue of Rp3 trillion last year, around the same as it booked in 2005.
"Sales for the period were virtually unchanged year on year at Rp3 trillion. However, our net income of Rp176 billion, or Rp23 per share, represented a distinct improvement," Holcim president director Tim Mackay said in a press release.
The company made a loss of Rp334.08 billion in 2005.  Mackay said that domestic demand, especially in Java, had contracted by 2% in 2006, in contrast to the 4.3% growth seen in 2005, despite the additional demand for cement for rebuilding work after the Aceh tsunami, and a spate of earthquakes and floods in different parts of the country.
Holcim controls about 16% of the domestic cement market.

PRIVATE SECTOR
Indofood Plans to Up Noodle Capacity
The world's largest instant noodle maker, PT Indofood Sukses Makmur, plans to boost its capacity to 14.5 billion packs per year from 13.5 billion to meet growing demand, a senior executive said on Tuesday (3/4/07).
The company would spend Rp1.6 trillion ($175.4 million) this year, 80% of which would be for expansion, director Thomas Tjhie said, according to Reuters.  "Sales volume increased sharply to 11.3 billion packs last year, or up by 20%, resulting in Rp7.3 trillion in sales." 
The per capita instant noodle consumption among Indonesia’s 220 million people is about 57 packs a year, lower than top instant noodle consumer Korea's 70 packs.
Indofood posted a more than five-fold rise in net profit last year on firmer sales and after earnings rebounded following hefty one-off charges in 2005.
In 2005, the company suffered heavy foreign exchange losses on its dollar-denominated debt, while it also had one-off charges from a currency swap contract and a premium paid on the redemption of its dollar-denominated bonds.

Toyota Sales Up 34% in March
Toyota Motor Corp's vehicle sales in Indonesia jumped by more than a third last month, as consumer spending started to recover and on lower interest rates, an official at its local unit said on Wednesday (4/4/07).
Jodjana Jody said sales by PT Toyota Astra Motor reached 12,893 units in March, up from 9,608 a year ago and 8,057 in February.
He estimated total industry sales would jump to 34,000 units, up by 26.7% from the same month last year.  "Sales were good last month.  Our sales number reached 12,893, and it brings our stock level to its lowest in history," Jody told Reuters.
Indonesia's vehicle sales fell 40% last year as the industry was hit by soaring inflation and high interest rates.  "Looking at the current growth, I am optimistic that the (entire) industry can book 350,000 to 400,000 total sales this year," he added.
Meanwhile, Yamaha Motor Co Ltd led Indonesia's motorcycle market in March after overtaking Honda Motor Co for the first time, Bisnis Indonesia reported on Wednesday, citing industry data.
Data from the Motorcycle Industry Association showed Yamaha sold 159,035 units last month, compared to 151,074 for Honda.
The paper did not report overall industry sales for March but said Yamaha had 43.7% of sales that month compared to 41.5% by Honda.
Motorcycle sales declined by nearly 13% last year after the government decided to more than double domestic fuel prices in October 2005.
Sales hit a record high of nearly 5.1 million units in 2005 but dropped to 4.43 million last year.  Analysts and industry experts predicted sales to top 5 million this year.

Tire Makers to Lift 2007 Output by 10%
Tire makers plan to increase their output by nearly 10% this year to meet demand from the domestic automotive sector, a senior industry official said on Tuesday (3/4/07).
The country's tire manufacturers are expected to produce 45 million car tires this year, up from 41 million in 2006, Aziz Pane, chairman of the Indonesian Tire Producers Association, told Reuters.
"Domestic demand is growing as the number of cars is increasing," said Pane, who was speaking on the sidelines of a meeting with an Egyptian trade delegation.
Domestic sales are expected to rise by up to 25% this year following falls in interest rates.
Sales hit a record high of 533,920 units in 2005, before plunging to 318,883 units last year.  Analysts and industry experts predict sales to reach between 350,000 and 400,000 units this year.
Indonesia is the world's second largest natural rubber producer after Thailand.  It exports car tires to more than 140 countries across the world, with its main markets being the Middle East and some African countries.

Lion Air to Get New Boeing Aircraft
Private airline Lion Air said it will receive a delivery of a Boeing 737-900ER aircraft by the end of this month.
It will be the first of 60 units of Boeing 737-900ERs the low-cost carrier had ordered from the aircraft maker at a price of $60 million each.
Delivery of the entire 60 units is expected to be completed in five years, Lion Air communications manager Hasyim Alhabsi told the Investor Daily.
The 60 units will add to the airline's fleet of 29 aircraft, Alhabsi said, adding that the old aircraft will be handed over to its subsidiary Wings Air.
Meanwhile, Asia's top budget carrier AirAsia is planning four return flights a week to Aceh from June, the airline's chief Tony Fernandes said recently.
The flights from Malaysia's capital Kuala Lumpur to the province's capital Banda Aceh will be AirAsia's 10th destination in Indonesia.

 

BANKS
BI Sees Higher Bank Loans Growth
Bank Indonesia (BI) expects commercial banks' loan growth this year to beat its earlier estimate of an 18% rise, following the introduction of some new lending rules, public relations director Budi Mulya said.
"We do hope the (new) rules will help boost banks' lending to more than that (18%) level," he was quoted as saying by XFN-Asia in a report on Tuesday (3/4/07).
BI said late Monday (2/4/07) it has issued new regulations that will relax its so-called "uniform classification" lending rule for commercial banks.  Under the rule, first issued in 2005, outstanding loans by a debtor, or those in a project involving multiple banks, totaling Rp500 million or more, were classified uniformly by the lenders involved.
The new regulation, however stipulates that "uniform classification" will now only apply to debts of Rp10 billion or more.
The old regulation had hindered loans growth, partly because it triggered an increase in the level of non-performing loans (NPLs) in some major banks as they were forced to classify their loans at the lowest quality level set by other banks.
The central bank also relaxed a rule governing loans to small and medium enterprises (SMEs).
Under the old regulation, a decision to extend loans to SMEs had to take into consideration the prospects of the industry concerned, a debtor's balance sheet and its capability to repay loans.
Under the new rule, banks will only be required to consider the borrower's capability to repay the loan as the main parameter in deciding whether to extend funds.  This applies to loans worth up to Rp20 billion.

Panin Bank to Issue Bonds
Panin Bank is set to offer Rp1.5 trillion ($164 million) in bonds next month and will use the proceeds to strengthen its capital base and financing capabilities, The Jakarta Post reported.
The bonds will consist of three series with different maturities and interest rates, treasury director Johnny N. Wiraatmadja told reporters Thursday (5/4/07).
The A series bonds will mature in three years and carry coupons of between 9.25% and 9.75%, while the B series bonds mature in three years and carry coupons of between 10.25% and 10.75%. The C series bonds will mature in seven years and carry coupons of between 10.50% and 11%.
Panin issued Rp1.3 trillion worth of bonds in 2003. As of December 2006, the bank’s total assets amounted to Rp40 trillion. Its 2006 net profit rose 29% to Rp730 billion from Rp564 billion in 2005. It expanded loans by 25.3% in 2006, and at the end of the year had a loan-to-deposit ratio of 80.47%.
The bank has appointed PT Deutsche Securities Indonesia, PT Indo Premier Securities and PT Evergreen Capital to manage the bond issue.