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<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: center"
align=center><STRONG><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: Arial">THE
COORDINATING MINISTRY FOR ECONOMIC AFFAIRS <o:p></o:p></SPAN></STRONG></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: center"
align=center><st1:place w:st="on"><st1:PlaceType w:st="on"><STRONG><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: Arial">REPUBLIC</SPAN></STRONG></st1:PlaceType><STRONG><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: Arial">
OF <st1:PlaceName
w:st="on">INDONESIA</st1:PlaceName></SPAN></STRONG></st1:place><STRONG><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: Arial"><o:p></o:p></SPAN></STRONG></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: center"
align=center><st1:PlaceName w:st="on"><EM><SPAN
style="FONT-SIZE: 10pt; mso-bidi-font-weight: bold">Main</SPAN></EM></st1:PlaceName><EM><SPAN
style="FONT-SIZE: 10pt; mso-bidi-font-weight: bold"> <st1:PlaceType
w:st="on">Building</st1:PlaceType>, Ministry of Finance, Jl.
</SPAN></EM><EM><SPAN lang=SV
style="FONT-SIZE: 10pt; mso-bidi-font-weight: bold; mso-ansi-language: SV">Lapangan
Banteng Timur No.2-4 <st1:place w:st="on"><st1:City
w:st="on">Jakarta</st1:City></st1:place> Pusat</SPAN></EM><SPAN lang=SV
style="FONT-SIZE: 10pt; mso-ansi-language: SV"><o:p></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: center"
align=center><I style="mso-bidi-font-style: normal"><SPAN
style="FONT-SIZE: 10pt">Tel: (021) 380-8384 Fax: (021)
344-0394 Website: <A
href="http://www.ekon.go.id">http://www.ekon.go.id</A><o:p></o:p></SPAN></I></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 16pt"><o:p> </o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: center"
align=center><SPAN style="FONT-SIZE: 14pt; FONT-FAMILY: Arial">Trade and
Investment News, <st1:date w:st="on" Year="2005" Day="27" Month="6">27 June
2005</st1:date><o:p></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></B></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Highlights
<o:p></o:p></SPAN></B></P>
<P style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></B></P>
<P style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Politics<o:p></o:p></SPAN></B></P>
<P
style="MARGIN: 0cm 0cm 0pt 18pt; TEXT-INDENT: -18pt; TEXT-ALIGN: justify; tab-stops: list 18.0pt; mso-list: l7 level1 lfo10"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"><SPAN
style="mso-list: Ignore">·<SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Next
round of talks on Aceh <o:p></o:p></SPAN></P>
<P
style="MARGIN: 0cm 0cm 0pt 18pt; TEXT-INDENT: -18pt; TEXT-ALIGN: justify; tab-stops: list 18.0pt; mso-list: l7 level1 lfo10"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"><SPAN
style="mso-list: Ignore">·<SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The
government stands firm on a new regulation to ease infrastructure
development<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Economy<o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt 18pt; TEXT-INDENT: -18pt; TEXT-ALIGN: justify; mso-layout-grid-align: none; tab-stops: list 18.0pt; mso-list: l5 level1 lfo9"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"><SPAN
style="mso-list: Ignore">·<SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Bank
<st1:place w:st="on"><st1:country-region
w:st="on">Indonesia</st1:country-region></st1:place> pushed up interest rates to
correct the slide of the rupiah<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt 18pt; TEXT-INDENT: -18pt; TEXT-ALIGN: justify; mso-layout-grid-align: none; tab-stops: list 18.0pt; mso-list: l5 level1 lfo9"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"><SPAN
style="mso-list: Ignore">·<SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Foreign
investment went into high gear with more than $5 billion in
approvals<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt 18pt; TEXT-INDENT: -18pt; TEXT-ALIGN: justify; mso-layout-grid-align: none; tab-stops: list 18.0pt; mso-list: l5 level1 lfo9"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"><SPAN
style="mso-list: Ignore">·<SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The
government hands Pertamina cash to buy more fuel<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt 18pt; TEXT-INDENT: -18pt; TEXT-ALIGN: justify; mso-layout-grid-align: none; tab-stops: list 18.0pt; mso-list: l5 level1 lfo9"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"><SPAN
style="mso-list: Ignore">·<SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The World
Bank praises economic reform in <st1:place w:st="on"><st1:country-region
w:st="on">Indonesia</st1:country-region></st1:place> <o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt 18pt; TEXT-INDENT: -18pt; TEXT-ALIGN: justify; mso-layout-grid-align: none; tab-stops: list 18.0pt; mso-list: l5 level1 lfo9"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"><SPAN
style="mso-list: Ignore">·<SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Citigroup
raises its growth projection for the economy <o:p></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Business
briefs<o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Macroeconomy<o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt 18pt; TEXT-INDENT: -18pt; TEXT-ALIGN: justify; mso-layout-grid-align: none; tab-stops: list 18.0pt; mso-list: l2 level1 lfo8"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"><SPAN
style="mso-list: Ignore">·<SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Parliament’s Budget Commission
approves the government's 2005 state budget revision<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt 18pt; TEXT-INDENT: -18pt; TEXT-ALIGN: justify; mso-layout-grid-align: none; tab-stops: list 18.0pt; mso-list: l2 level1 lfo8"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"><SPAN
style="mso-list: Ignore">·<SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">No more
measures to curb foreign exchange trading for the time being
<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Investment<o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt 18pt; TEXT-INDENT: -18pt; TEXT-ALIGN: justify; mso-layout-grid-align: none; tab-stops: list 18.0pt; mso-list: l9 level1 lfo7"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"><SPAN
style="mso-list: Ignore">·<SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Foreign
direct investment (FDI) approvals surge 95% during the five months to May
<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt 18pt; TEXT-INDENT: -18pt; TEXT-ALIGN: justify; mso-layout-grid-align: none; tab-stops: list 18.0pt; mso-list: l9 level1 lfo7"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"><SPAN
style="mso-list: Ignore">·<SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Investment expected to reach 28% of
gross domestic production (GDP) in 2005<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">State
concerns<o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt 18pt; TEXT-INDENT: -18pt; TEXT-ALIGN: justify; mso-layout-grid-align: none; tab-stops: list 18.0pt; mso-list: l4 level1 lfo6"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"><SPAN
style="mso-list: Ignore">·<SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Regulations tightened on airline
industry<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt 18pt; TEXT-INDENT: -18pt; TEXT-ALIGN: justify; mso-layout-grid-align: none; tab-stops: list 18.0pt; mso-list: l4 level1 lfo6"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"><SPAN
style="mso-list: Ignore">·<SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The rice
import ban stays at least until the end of this year<B
style="mso-bidi-font-weight: normal"><o:p></o:p></B></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">SOEs<o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt 18pt; TEXT-INDENT: -18pt; TEXT-ALIGN: justify; mso-layout-grid-align: none; tab-stops: list 18.0pt; mso-list: l0 level1 lfo5"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"><SPAN
style="mso-list: Ignore">·<SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Shareholders in PT Telkom appoint a
career banker as the firm's new chief<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Banks<o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt 18pt; TEXT-INDENT: -18pt; TEXT-ALIGN: justify; mso-layout-grid-align: none; tab-stops: list 18.0pt; mso-list: l3 level1 lfo4"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"><SPAN
style="mso-list: Ignore">·<SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Bank
Indonesia (BI) prepares new incentives to encourage
consolidation<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Private
sector<o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt 18pt; TEXT-INDENT: -18pt; TEXT-ALIGN: justify; mso-layout-grid-align: none; tab-stops: list 18.0pt; mso-list: l8 level1 lfo3"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"><SPAN
style="mso-list: Ignore">·<SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Domestic
car sales in 2005 could reach 550,000 units, the leading distributor says
<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt 18pt; TEXT-INDENT: -18pt; TEXT-ALIGN: justify; mso-layout-grid-align: none; tab-stops: list 18.0pt; mso-list: l8 level1 lfo3"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"><SPAN
style="mso-list: Ignore">·<SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Toyota
Motor Corp. to use more kenaf, widely grown in <st1:place
w:st="on"><st1:country-region
w:st="on">Indonesia</st1:country-region></st1:place><o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Mining<o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt 18pt; TEXT-INDENT: -18pt; TEXT-ALIGN: justify; mso-layout-grid-align: none; tab-stops: list 18.0pt; mso-list: l6 level1 lfo2"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"><SPAN
style="mso-list: Ignore">·<SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><st1:country-region w:st="on"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Australia</SPAN></st1:country-region><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">’s <st1:place w:st="on"><st1:City
w:st="on">New Hope</st1:City></st1:place> completes the sale of its interests in
the Adaro mine and nearby coal terminal<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Oil &
gas<o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt 18pt; TEXT-INDENT: -18pt; TEXT-ALIGN: justify; mso-layout-grid-align: none; tab-stops: list 18.0pt; mso-list: l1 level1 lfo1"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"><SPAN
style="mso-list: Ignore">·<SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Deal on
an extension of ExxonMobil’s contract at the Cepu field is
reached<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt 18pt; TEXT-INDENT: -18pt; TEXT-ALIGN: justify; mso-layout-grid-align: none; tab-stops: list 18.0pt; mso-list: l1 level1 lfo1"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"><SPAN
style="mso-list: Ignore">·<SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">OPEC
urges <st1:place w:st="on"><st1:country-region
w:st="on">Indonesia</st1:country-region></st1:place> to stay in the
organization<o:p></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><SPAN
style="mso-spacerun: yes"> </SPAN><o:p></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><o:p> </o:p></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><o:p> </o:p></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><o:p> </o:p></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><o:p> </o:p></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><STRONG>POLITICS<o:p></o:p></STRONG></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: Arial">Aceh
Negotiators Press On<o:p></o:p></SPAN></B></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Minister of Justice and Human Rights
Hamid Awaluddin confirmed Tuesday (21/6/05) that the Government will join the
next round of peace negotiations with the Free Aceh Movement (GAM) in Helsinki
from July 12 -14.<o:p></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><SPAN
style="mso-spacerun: yes"></SPAN><BR>"The president's commitment must go on, it
means that we welcome and will join the last round of peace talks," Awaludin
told reporters after a meeting with Vice President Jusuf Kalla to discuss the
talks. <o:p></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">."Our position is that the meeting
with GAM is a must," said Awaludin, who is also the chief negotiator of the
Indonesian delegation. "We will discuss the substance of what is to be discussed
at the meeting, such as what measures can be taken if peace is achieved and the
amnesty that will be offered to GAM members.”<o:p></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><BR>The talks, now going into their
fifth round, are being facilitated by the Helsinki-based Crisis Management
Initiative (CMI).<o:p></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><BR></SPAN><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: Arial">Defense
to Get More Funds</SPAN></B><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: Arial"><o:p></o:p></SPAN></P>
<P style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The defense sector will receive Rp2
trillion ($208.3 million) in additional state funds in the revised<SPAN
style="mso-spacerun: yes"> </SPAN>2005 State Budget, Defense Minister
Juwono Sudarsono said Wednesday (22/6/05).<o:p></o:p></SPAN></P>
<P style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><BR>"We will observe efficiency and
a scale of priorities in the spending of the additional budget," he said after a
limited cabinet session chaired by Vice President Jusuf
Kalla.<o:p></o:p></SPAN></P>
<P style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><BR>In the original 2005 State
Budget, only Rp21.9 trillion was allocated for defense, not much more than it
has received in the past.<o:p></o:p></SPAN></P>
<P style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><BR>The meeting, attended among
others by National Development Planning Minister Sri Mulyani Indrawati, Armed
Forces chief Gen. Endriartono Sutarto and Finance Minister Jusuf Anwar, also
dwelt on the standard payment for defense equipment bought from both local and
foreign companies.<o:p></o:p></SPAN></P>
<P style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><BR>"There should be a more
intensive cooperation between the Ministry of Defense, Ministry of Finance and
the National Development Planning Board (Bappenas), “ said Sudarsono. “This is a
basic principle relating with the procurement of equipment and efficient usage
of state money," he said.<o:p></o:p></SPAN></P>
<P style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><BR>Sutarto said he prefers that the
Government meet the basic needs of troops, such as barracks, clothing and
weapons, most of which were in poor condition. <o:p></o:p></SPAN></P>
<P style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><BR>Meanwhile, Army commander Gen.
Djoko Santoso, said Thursday that the army would focus its weapon procurement on
domestic manufacturers.<o:p></o:p></SPAN></P>
<P style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><BR>"We will buy weapons mainly from
local manufacturers, like state-owned weapon manufacturing company PT Pindad, as
the quality of locally made arms is already good enough," Santoso told reporters
at the handover of the hand over of the Brawijaya Military Command from Maj.
Gen. Achmad Djunaedi Sikki to Maj-Gen Syamsul
Mappareppa.<o:p></o:p></SPAN></P><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">
<P style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><BR>Santoso said that the
procurement of hardware from domestic manufacturers, mostly light weapons,
transport and communications gear, was aimed mainly at reducing <st1:place
w:st="on"><st1:country-region
w:st="on">Indonesia</st1:country-region></st1:place>'s high dependence on
foreign countries. </P>
<P style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><o:p></o:p></SPAN> </P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: Arial">The
Government firms on Infrastructure Regulation<o:p></o:p></SPAN></B></P>
<P style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The government says it will not
withdraw or revise a new regulation on land acquisition for public development
purposes, despite protests from critics who say it may be misused.
<o:p></o:p></SPAN></P>
<P style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The regulation is seen as vital to
press forward with infrastructure projects, which in the past have been able to
be blocked by a handful of property owners and speculators.
<o:p></o:p></SPAN></P>
<P style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><BR>Public Works Minister Djoko
Kirmanto said that because many infrastructure projects had run aground due to
land-purchase problems, there was no other course of action open to the
government. <o:p></o:p></SPAN></P>
<P style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><BR>"There are many cases in which
the construction of infrastructure projects has been stalled because of the
objections of a single landowner," Djoko told a press conference on Tuesday
(21/6/05) after a meeting with Vice President Jusuf Kalla and other government
officials to discuss the issue.<o:p></o:p></SPAN></P>
<P style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><BR>Issued last month, Presidential
Regulation No. 36/2005 effectively allows the Government to acquire land for
crucial infrastructure projects even if the landowners have not agreed on the
amount of compensation offered to them.<o:p></o:p></SPAN></P>
<P style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><BR>The head of the National Land
Agency (BPN), Muhammad Lutfi, said the Government was committed to provide
competitive compensation to landowners whose land is affected by development
projects. <o:p></o:p></SPAN></P>
<P style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><STRONG>ECONOMY<o:p></o:p></STRONG></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: Arial">Benchmark
Rate Jumps <o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Bank Indonesia (BI) pushed up the
rate of its benchmark paper at the weekly auction, firming the rupiah, while the
government paid Rp10 trillion ($1.05 billion) to state oil distributor Pertamina
to quell fears of power cuts and fuel shortages. <o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">And in the oil and gas sector, news
of agreement between the government and ExxonMobil raised hopes of an early
return for <st1:place w:st="on"><st1:country-region
w:st="on">Indonesia</st1:country-region></st1:place> to full oil exporter
status. <o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">BI sold Rp11.25 trillion worth of
its one-month Sertifikat Bank Indonesia (SBI) notes at a weighted average rate
of 8.17%, up from 8.06% a week earlier. <o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Vice President Jusuf Kalla urged the
public to conserve fuel, and there was debate on a vehicle fuel tax or other
means of reducing consumption. "In this problem of oil fuel scarcity, one thing
we have to realize is that we should handle the problem of expensive fuel
together. The first and easiest way is to economize oil fuel use," Kalla
said.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Kalla also stated that the
government would cap expenditure on fuel subsidies at Rp70 billion ($7.2
billion), and would not meet some predictions of a total annual bill of Rp110
trillion ($11.3 billion). <o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><st1:place
w:st="on"><st1:country-region w:st="on"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Indonesia</SPAN></st1:country-region></st1:place><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"> is in a relatively benign position
as global energy prices rise. It has enormous stockpiles of both LNG and coal
and is developing a widespread pipeline network to feed its industrial areas and
power plants. <o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Investors clearly believed that the
prospects for the economy are sound. Foreign direct investment (FDI) approvals
during the five months to May surged 95% year-on-year to $5.47 billion, up from
$2.81 billion a year earlier.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Projects approved were of higher net
value than those in the same period last year, the National Investment
Coordinating Board (BKPM) said.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">BKPM said 568 of the approved
investments in the five-month period were new FDI projects worth $3.05 billion,
compared with 410 projects worth $1.02 billion approved a year
earlier.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Approved FDI expansion projects
numbered 145, worth $1.13 billion, which were higher than the 107 projects worth
$979.7 million approved a year earlier.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Domestic investment approvals rose
13% to Rp20.89 trillion from Rp18.47 trillion a year earlier, with the rise in
the value of expansion projects offsetting the decline in the value of new
projects.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Pharmaceuticals and chemicals
absorbed $2.24 billion of FDI, followed by mining at $510.6 million and
transportation, storage and communication in third with $509.6 million.
<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">In domestic investment, the food
industry was highest with Rp4.23 trillion in proposed investments, followed by
services at Rp3.07 trillion and food crops and plantations at Rp2.99 trillion.
<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The Consultative Group on Indonesia
(CGI), a grouping of major foreign donors, was also satisfied with <st1:place
w:st="on"><st1:country-region
w:st="on">Indonesia</st1:country-region></st1:place>'s economic progress. World
Bank vice president Jemal-ud-din Kessum said Friday (<st1:date w:st="on"
Year="2005" Day="24" Month="6">24/6/05</st1:date>) the economic reform was
progressing well, especially on efforts to improve the investment climate. The
World Bank chairs the CGI.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">"The government is very committed to
improving the business climate, we have seen strong anti-corruption efforts
recently," Kessum told reporters ahead of the CGI mid-year meeting in <st1:place
w:st="on"><st1:City w:st="on">Jakarta</st1:City></st1:place>, <I
style="mso-bidi-font-style: normal">The Jakarta Post </I>reported. A World Bank
survey noted that corruption has dropped sharply.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Citigroup also raised its forecast
for <st1:place w:st="on"><st1:country-region
w:st="on">Indonesia</st1:country-region></st1:place>'s growth this year to 5.63%
from its earlier estimate of 5.30%, saying investment was improving. The
government’s budget, due to be approved by a plenary session of parliament, aims
for 6%.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The Citigroup upgrade followed a
week after another upward revision from Morgan Stanley, which pushed its
prediction to 5.4% from 4.5%. <o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">In a bid to keep investment moving,
the government will hold a second infrastructure summit in November, chairman of
the Indonesian Chamber of Commerce and Industry (Kadin) MS. Hidayat
said.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">There were also plans to initiate
programs to raise the capacity of <st1:country-region w:st="on"><st1:place
w:st="on">Indonesia</st1:place></st1:country-region>’s regional governments to
improve their marketing skills. <o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><BR><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><STRONG>MACROECONOMY<o:p></o:p></STRONG></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">Budget
Approved <o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The House of Representatives Budget
Commission approved the government's 2005 state budget revision on Tuesday
(<st1:date w:st="on" Year="2005" Day="21" Month="6">21/6/05</st1:date>) night,
<I style="mso-bidi-font-style: normal">The Jakarta Post</I>
reported.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Minister of Finance Jusuf Anwar and
Bank <st1:country-region w:st="on"><st1:place
w:st="on">Indonesia</st1:place></st1:country-region> Governor Burhanuddin
Abdullah along with Budget Commission chairman Emir Moeis announced that the
commission had in principle agreed with the government on all revisions to the
budget's allocations and macroeconomic assumptions, despite the need to finalize
several specific details. <o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The commission asked the government
to explain in detail its disbursements of welfare assistance funds for the
education and health sectors. <o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">"We hope to be able to work out
these details within the next two days, and then bring the budget revision to
the House's plenary session next week," Emir said. <o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The Budget Commission agreed to set
aside a total of Rp11 trillion ($1.14 billion) for welfare payments, up from
Rp10.78 trillion proposed by the government. <o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Of the funds, Rp6.27 trillion will
go to reduce basic education fees, Rp3.87 trillion to improve public health
services and Rp3.34 trillion for rural infrastructure development.
<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">State expenditures will amount to
Rp511.91 trillion, while state revenues will total Rp491.6 trillion. The budget
deficit will amount to Rp20.33 trillion, up from Rp17.39 trillion.
<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">‘Wait
and See’ on Forex Curbs<o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><st1:country-region
w:st="on"><st1:place w:st="on"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Indonesia</SPAN></st1:place></st1:country-region><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"> will not introduce any more
measures to curb foreign exchange trading until the impact of steps announced
earlier becomes clear, the central bank chief said in <st1:City
w:st="on"><st1:place w:st="on">Kuala Lumpur</st1:place></st1:City> Wednesday
(<st1:date w:st="on" Year="2005" Day="22" Month="6">22/6/05</st1:date>), Dow
Jones Newswires reported. <o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Bank Indonesia (BI) introduced a
ruling that limits dollar-rupiah trading by foreign players. The ruling takes
effect July 14.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">"The measure is still at a
preliminary stage," BI Governor Burhanuddin Abdullah told reporters at a
<st1:City w:st="on"><st1:place w:st="on">Kuala Lumpur</st1:place></st1:City>
seminar on Islamic finance.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Separately, another top BI official
said the new ruling is intended not to deter foreign investors, but to make
their local investments safer by keeping the rupiah
stable.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Rasmo Samiun, director of reserve
management, said the BI ruling is aimed at limiting inflows of the speculative
offshore money and not at foreign investors generally.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The new rule will limit dollar
purchases by onshore banks from offshore counterparts through derivative
transactions at $1 million. These types of transactions previously weren't
subject to any cap.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">SBI
<o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Bank <st1:country-region
w:st="on"><st1:place w:st="on">Indonesia</st1:place></st1:country-region>
auctioned Rp11.25 trillion worth of its one-month notes, known as Bank Indonesia
Certificates (SBI), at a weighted average interest rate of 8.17% compared to
8.06% at the week before auction. The auction absorbed 94.64% of
bids.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">Forex
Reserves <o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Foreign exchange reserve dropped to
$34.27 billion in the second week of June after rising slightly in the first
week to $34.62 billion, Bank <st1:country-region w:st="on"><st1:place
w:st="on">Indonesia</st1:place></st1:country-region> said. The decline was
caused by foreign debt repayments.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The central bank said the amount of
primary money in circulation totaled Rp192.11 trillion on June 15, up from
Rp188.31 trillion a week before.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">I<STRONG>NVESTMENT
<o:p></o:p></STRONG></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">Approvals
Surge <o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Foreign direct investment (FDI)
approvals during the five months to May surged 95% year-on-year to $5.47 billion
from $2.81 billion a year earlier, largely due to the higher value of new
projects, the National Investment Coordinating Board (BKPM)
said.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Over the same period, domestic
investment approvals rose 13% to Rp20.89 trillion from Rp18.47 trillion in the
same period a year earlier, with the rise in the value of expansion projects
offsetting the decline in the value of new projects.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">"In 2005 at least 16 foreign and
domestic investment projects are expected to start production," BKPM chairman M.
Lutfie said.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The domestic investment projects
licensed in the January-May period were mostly in food, chemical,
pharmaceutical, textile and paper industries, he said.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Most of the foreign investment
projects dealt with chemical, pharmaceutical, metal, machinery, electrical, gas
and food industries, he said.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Investment growth in 2005 is
expected to reach 28% of gross domestic production (GDP), compared with 25% at
the moment.<SPAN style="mso-spacerun: yes"> </SPAN><o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">"Of the total economic growth of
6.35%, consumption contributed only 3.22%, with the rest coming from investment.
This is good," Lutfie added.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p></o:p></SPAN> </P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><st1:country-region
w:st="on"><st1:place w:st="on"><B style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">Japan</SPAN></B></st1:place></st1:country-region><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">
Backs Autos, Motorcycles <o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Japanese car and motorcycle makers
plan to invest some $450 million in <st1:country-region w:st="on"><st1:place
w:st="on">Indonesia</st1:place></st1:country-region>, mainly to raise motorcycle
production capacities amid strong demand here, <I
style="mso-bidi-font-style: normal">Bisnis Indonesia</I> reported, quoting
Minister of Industry Andung Nitimihardja.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Nitimihardja said Japanese firms
expressed their interest to invest in <st1:country-region w:st="on"><st1:place
w:st="on">Indonesia</st1:place></st1:country-region> during his recent visit to
<st1:country-region w:st="on"><st1:place
w:st="on">Japan</st1:place></st1:country-region>, although some of the projects
he mentioned had already been announced.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Suzuki Motor Corp plans to invest
$200 million to raise its motorcycle production capacity in <st1:country-region
w:st="on"><st1:place w:st="on">Indonesia</st1:place></st1:country-region> to 2
million units a year by 2006 or 2007, he said.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">He said Suzuki produced 800,000
motorcycles last year and is targeting an output of 1.5 million vehicles this
year.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The company also plans to make
<st1:country-region w:st="on"><st1:place
w:st="on">Indonesia</st1:place></st1:country-region> the production base for
worldwide sales of its APV multipurpose vehicle, Nitimihardja
said.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Yamaha Motor Co plans to open its
second motorcycle plant in <st1:country-region w:st="on"><st1:place
w:st="on">Indonesia</st1:place></st1:country-region> next January with a
capacity of 600,000 units a year and an investment of $80 million, he
said.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Honda Motor Co, which controls about
half of <st1:country-region w:st="on"><st1:place
w:st="on">Indonesia</st1:place></st1:country-region>'s motorcycle market, will
start operating its third motorcycle plant in October following an investment of
$100 million.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">To meet Honda's expanded production
capacities the spare parts industry will invest some $70 million, he added.
Motorcycle sales are estimated to hit 5 million units this year, up from 3.98
million last year.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'"><o:p> </o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><st1:country-region
w:st="on"><st1:place w:st="on"><B style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">Korea</SPAN></B></st1:place></st1:country-region><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">’s
Sam-An Looks at Rail Deal <o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><st1:country-region
w:st="on"><st1:place w:st="on"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">South
Korea</SPAN></st1:place></st1:country-region><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">'s Sam-An Corp. expects to sign an
agreement with the Indonesian government next month to provide consulting
services and help modernize <st1:City w:st="on"><st1:place
w:st="on">Jakarta</st1:place></st1:City>'s train system, a project that could be
valued at up to $300 million, the company's top executive
said.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Under the plan, Sam-An will design
and organize a plan to improve the train system in and around the city of
Jakarta, the engineering consulting firm's President Lim Jong-Ah told Dow Jones
Newswires in an interview.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The Indonesian government plans to
finalize the upgrade of the train system by 2008. The project will include
improvement and construction of railways and station
facilities.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Sam-An was first asked by the city
of Jakarta to conduct studies on the upgrade in 2003 and the Indonesian
government indicated in a letter earlier this year its intention to allow the
South Korean company to go ahead with the project.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">"As Indonesian government officials
are pushing hard to materialize this project, we expect to sign a memorandum of
understanding with the transportation ministry in July and a final agreement is
expected to be reached by the end of 2005," said Lim.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Sam-An will serve as the
construction manager and coordinate all processes including financing, he
said.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Sam-An plans to improve the traffic
system of the crowded city by rearranging <st1:City w:st="on"><st1:place
w:st="on">Jakarta</st1:place></st1:City>'s existing railway
connections.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The Indonesian government and Sam-An
haven't yet determined how they will arrange financing for the project, but Lim
said his company plans to arrange project financing from international
investors, including South Korean investors.</SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p></o:p></SPAN> </P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">Sugar
Factory to Operate<o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">A double refined sugar factory of PT
Dharmapala Usaha Sukses at Cilacap, <st1:place w:st="on">West Java</st1:place>,
will start operation next month, a company official said, according to
Antara.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The factory has been built with
investment of Rp225 billion ($23.3 million) and will have a capacity of 400-400
tons per day, a company Director Nugroho S. Darsono told
reporters.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">In September the factory is expected
to operate at full capacity with production of 800 tons per day, Darsono
said.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The factory will process raw sugar
imported from <st1:country-region w:st="on"><st1:place
w:st="on">Australia</st1:place></st1:country-region>, <st1:country-region
w:st="on"><st1:place w:st="on">Brazil</st1:place></st1:country-region>,
<st1:country-region w:st="on"><st1:place
w:st="on">Thailand</st1:place></st1:country-region>, and <st1:place
w:st="on">Africa</st1:place> and production will be supplied to various domestic
industries.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><STRONG>STATE
CONCERNS<o:p></o:p></STRONG></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">New
Rules on Fishing <SPAN
style="mso-spacerun: yes"> </SPAN><o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The government will allow foreign
fishing vessels to resume operation in the country, but they will have to sell
70% of their production to feed local fish processing
industry.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Maritime and Fisheries Minister
Freddy Numberi said 800 foreign fishing vessels from <st1:country-region
w:st="on"><st1:place w:st="on">Thailand</st1:place></st1:country-region>,
<st1:country-region w:st="on"><st1:place
w:st="on">China</st1:place></st1:country-region> and the <st1:country-region
w:st="on"><st1:place w:st="on">Philippines</st1:place></st1:country-region> will
have their operating licenses terminated in 2006-2007.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The government has decided not to
renew bilateral fishing agreements with the three
countries.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The 800 ships would be allowed to
continue operation in the country under a joint investment scheme with 70% of
their catch to feed the local fish processing industry, Numberi
said.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">He said Philippine, Thai and Chinese
fishing companies have agreed to the scheme.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Around 800 foreign fishing ships
will have their operating licenses to operate in <st1:country-region
w:st="on"><st1:place w:st="on">Indonesia</st1:place></st1:country-region>'s
exclusive economic zone (EEZ) terminated in 2006 and 2007, Antara
reported.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-INDENT: 36pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p></o:p></SPAN> </P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-INDENT: 36pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">Air
Safety Tightened <o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The government has issued a
regulation banning airlines from using aircraft older than 35 years or planes
that have landed more than 70,000 times, Antara reported. <o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The regulation, to be effective in
December this year, also rules that passenger aircraft must not have landed more
than 50,000 times when they commence their first flight in the
country.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Transport Minister Hatta Rajasa said
the regulation is aimed at guaranteeing greater safety for
passengers.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The National Air Carrier Association
said many aircraft operated by new airline companies in the country have made
more than 70,000 landings. </SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p></o:p></SPAN> </P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">Rice
Ban Extended <o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The government has decided to extend
a rice import ban until the end of this year, Minister of Agriculture Anton
Apriyantono said Wednesday, Dow Jones Newswires reported. <o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">"We aren't worried about our rice
stocks, so we've decided not to import rice unless conditions become extreme,"
he said. "This policy will be reviewed at the end of the year to see if it will
be extended again."<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><st1:country-region
w:st="on"><st1:place w:st="on"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Indonesia</SPAN></st1:place></st1:country-region><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"> will have rice stocks of 4.2
million tons by the end of this year, Apriyantono said, citing ministry
projections.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The government initially imposed the
ban from January 2004 to July 2004, then extended it in August of that year
until end-2004, due to expectations of robust domestic output. In December 2004,
the government extended the ban to June 2005 due to official assessments of
sufficient stocks and a good rice harvest.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><STRONG>SOEs<o:p></o:p></STRONG></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: AngsanaUPC">Telkom
Changes Guard<o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Shareholders in PT Telekomunikasi
<st1:country-region w:st="on"><st1:place
w:st="on">Indonesia</st1:place></st1:country-region> (Telkom),
<st1:country-region w:st="on"><st1:place
w:st="on">Indonesia</st1:place></st1:country-region>'s largest telecoms
operator, appointed a career banker as the firm's new chief, Reuters reported.
<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The state-controlled firm's
shareholders approved a government proposal to appoint banker Arwin Rasyid as
its new chief, replacing Kristiono.</SPAN><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: 'Courier New'"> </SPAN><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Telkom retained Rinaldi Firmansyah
as finance director and Abdul Haris as director for network
solutions<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Rasyid was previously vice president
director at the country's third-largest lender, PT Bank Negara Indonesia
(BNI).<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The new president director said he
will seek to use his experience to expand the business. “I won't pretend that I
know much about Telkom, about the technicalities of the telecommunications
industry but I want to learn,” Rasyid said. <o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">“I hope that I bring synergy from
the consumer banking background to this company so that it will make Telkom a
bigger, better company in the future.” He added that the company would cooperate
fully with any investigation, alluding to an as yet unspecified probe into its
dealings.<SPAN style="mso-spacerun: yes"> </SPAN><o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Telkom, through mobile phone unit PT
Telkomsel, which it owns jointly with Singapore Telecommunications Ltd, has
slightly over half of <st1:country-region w:st="on"><st1:place
w:st="on">Indonesia</st1:place></st1:country-region>'s mobile communication
market.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The number of cellular users is
expected to expand by 50% this year, bringing the total number of subscribers to
45 million by the end of 2005.</SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p></o:p></SPAN> </P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><SPAN
style="mso-spacerun: yes"> </SPAN><o:p></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">Bid
for <st1:place w:st="on">Krakatau</st1:place> Steel
Expansion<o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">A consortium comprising
<st1:country-region w:st="on"><st1:place w:st="on">South
Korea</st1:place></st1:country-region>'s Samsung Corp, POSCO and
<st1:country-region w:st="on"><st1:place
w:st="on">Italy</st1:place></st1:country-region>'s Danieli & C SpA plan to
join a tender for state-run PT Krakatau Steel's production capacity expansion
project, said Danieli vice president Antonello Mordelia.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Mordelia said the consortium will
bid for an engineering procurement and construction (EPC) contract from
<st1:place w:st="on">Krakatau</st1:place>, AFX reported.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The contract calls for expansion of
<st1:place w:st="on">Krakatau</st1:place>'s unrolled coil production capacity by
1.0-1.2 million tons a year, he told reporters. Mordelia declined to estimate
the value of the project.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><STRONG>BANKS<o:p></o:p></STRONG></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: Arial">BI
to Offer Merger Incentives <o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Bank Indonesia (BI) is preparing new
incentives to encourage banks to speed up the consolidation of the domestic
banking sector, Governor Burhanuddin Abdullah said, according to <I
style="mso-bidi-font-style: normal">Bisnis Indonesia</I>. Senior Deputy Governor
Miranda Goeltom also urged quick implementation of the merger plan, pointing to
<st1:country-region w:st="on"><st1:place
w:st="on">Malaysia</st1:place></st1:country-region>’s success in cutting the
number of its banks by half. <o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The central bank was talking to the
Ministry of Finance about the new incentives BI could provide to support any
merger plan but agreement was still some way off.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">He said the central bank would
announce the criteria for anchor banks under its new sectoral architecture on
June 30. While names of existing anchor banks would not be mentioned, the
criteria would make it clear enough. “The domestic banks could get the message
on which banks are eligible to be such anchor bank," he said.
<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">"The bank should be healthy. The
financial system of the bank should be sound and it has to apply good corporate
governance," he said.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Senior Deputy Governor Miranda
Goeltom also urged quick implementation of the merger plan, pointing to
<st1:country-region w:st="on"><st1:place
w:st="on">Malaysia</st1:place></st1:country-region>’s success in cutting the
number of its banks by half. </SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p></o:p></SPAN> </P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">Property
Loans Up<o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Bank loans for the property sector
jumped 45% in April to Rp74.08 trillion ($7.8 billion) from Rp50.98 trillion a
year ago, Antara reported. <o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The loan portion for the property
sector has increased against total bank loans in the past several years, data at
Bank <st1:country-region w:st="on"><st1:place
w:st="on">Indonesia</st1:place></st1:country-region>
showed.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">In April this year, the property
sector accounted for 12.6% of total bank loans, up from 11.2% in the same month
last year.</SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p></o:p></SPAN> </P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><STRONG>PRIVATE
SECTOR<o:p></o:p></STRONG></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">Auto
Sales ‘May Hit 550,000’<o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Automotive distributor PT Astra
International said Thursday (<st1:date w:st="on" Year="2005" Day="23"
Month="6">23/6/05</st1:date>) domestic car sales by all companies in 2005 could
reach 550,000 units, up from an earlier forecast of 510,000, Reuters
reported.<SPAN style="mso-spacerun: yes"> </SPAN><o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">High oil prices, a rise in interest
rates and the weakness of the rupiah were negative factors, but the car market
was growing, as was the economy, Astra director Johnny Darmawan
said.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">"Looking at those factors, I am
confident that we can reach 540,000-550,000. We can even get bigger than that,"
he added.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Last year, 483,295 cars were sold
and in the first five months of 2005, 246,421 cars were sold, some 34% higher
than in the same period of 2004. Astra accounted for around 47% of
sales.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Darmawan said that further weakness
in the rupiah could slow sales growth. </SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p></o:p></SPAN> </P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">Kenaf
for <st1:City w:st="on"><st1:place w:st="on">Toyota</st1:place></st1:City>
<o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Toyota Motor Corp. group companies
are to increase the production of automotive components made from kenaf, widely
grown in <st1:country-region w:st="on"><st1:place
w:st="on">Indonesia</st1:place></st1:country-region>, <I
style="mso-bidi-font-style: normal">Nihon Keizai Shimbun</I>
reported.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Toyota Boshoku Corp. intends to
double annual production at its kenaf processing factory in <st1:City
w:st="on"><st1:place w:st="on">Surabaya</st1:place></st1:City> from the current
1,500 tons to 3,000 tons by 2007.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The output is expected to be
exported mainly to <st1:country-region w:st="on"><st1:place
w:st="on">Japan</st1:place></st1:country-region> and the <st1:country-region
w:st="on"><st1:place w:st="on">US</st1:place></st1:country-region> in the form
of materials for car door interiors. The company aims to double the kenaf field
acreage to 3,000 hectares and contract the farming to local
workers.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Toyota Auto Body Co. plans to work
with Toyota Motor to develop bumpers and other car exterior materials that are
made from kenaf. Toyota Auto Body has already started growing kenaf in
<st1:country-region w:st="on"><st1:place
w:st="on">Indonesia</st1:place></st1:country-region> and is now considering
building a mass-production plant in 2006 or later.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Toyota Motor has targeted replacing
15% of resin-based autoparts with those made from plants and other more
environmentally friendly materials by 2010.</SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p></o:p></SPAN> </P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">Adam
Air Looks to Airbus <o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Low-cost carrier PT Adam Sky
Connection Airlines (Adam Air) plans to buy 10 Airbus jets in 2008 to replace
some of its Boeing fleet as it seeks to open new routes to Malaysia, Singapore,
Australia, India and China, <I style="mso-bidi-font-style: normal">Investor
Daily</I> reported.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">'At the start of 2008 Adam will buy
around 10 Airbus jets of the 321, 320 or 319 series,' the paper quoted Adam Air
chief communication officer Dave Laksono as saying.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Adam Air currently operates 14
Boeing jets of B-737-200 and B-737-300 types. </SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p></o:p></SPAN> </P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">Arpeni
IPO Succeeds <o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Shipping company PT Arpeni Pratama
Ocean Lines sold a 33% stake in its enlarged capital via a initial public
offering (IPO) at Rp625 a share, raising Rp312.50 billion to help it fund ship
purchases, Antara reported.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The IPO was oversubscribed by four
times, with foreign investors accounting for 60% of the 500 million offered
shares. <o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Finance director Ateng Suhendar said
the company expects its sales to more than double this year from Rp845.87
billion in 2004 as it plans to add 14 new ships to its
fleet.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Company president Oentoro Surya said
the planned purchases will bring its fleet to 38 vessels.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Arpeni has 10 additional ships
rented but now plans to return them once the new ships have been
delivered.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The 14 new ships will cost about
$126 million, 30% of which the company hopes to finance from the IPO proceeds,
Surya said, with the remainder financed by bank loans.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p></o:p></SPAN> </P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">Barclays
Capital Opens <o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Barclays Capital, the investment
banking division of Barclays Bank Plc, officially opened an office in <st1:City
w:st="on"><st1:place w:st="on">Jakarta</st1:place></st1:City> on Wednesday
(<st1:date w:st="on" Year="2005" Day="22" Month="6">22/6/05</st1:date>), T<I
style="mso-bidi-font-style: normal">he <st1:City w:st="on"><st1:place
w:st="on">Jakarta</st1:place></st1:City> Post</I>
reported.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Robert Morrice, chairman and chief
executive of Barclays Capital in Asia Pacific, said the opening of the “is a
clear signal of our firm commitment to <st1:country-region w:st="on"><st1:place
w:st="on">Indonesia</st1:place></st1:country-region>, which we view as an
important market for us in Asia Pacific." <o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">British Ambassador to Indonesia
Charles Humfrey, who attended the opening ceremony, said, "the opening is
another example of the strengthening ties between British and Indonesian
business." <o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><STRONG>POWER<o:p></o:p></STRONG></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">Chevron
Back to Geothermal Work</SPAN></B><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: 'Courier New'"> <o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Chevron Texaco Energy Indonesia Ltd.
(CTEI) will be able to resume the construction of its geothermal power plant,
Dradjat III, in the regency of Garut after receiving a go ahead from the
district administration, Antara reported.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Earlier the Garut administration
withheld the principle license for the project due to a delay in working out the
compensation amount for the local community.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Field Community Development
Coordinator of CTEI Deddy Supardi said contractor PT Thiess has resumed work on
the project.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Construction of the 105 MW power
plant with an investment of around $130 million is expected to be completed as
scheduled in June 2006.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><STRONG>MINING<o:p></o:p></STRONG></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><st1:City
w:st="on"><st1:place w:st="on"><B style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">New
Hope</SPAN></B></st1:place></st1:City><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">
Completes <st1:City w:st="on"><st1:place w:st="on">Sale</st1:place></st1:City>
<o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">New Hope Corp Ltd said Thursday
(<st1:date w:st="on" Year="2005" Day="23" Month="6">23/6/05</st1:date>) it has
completed the sale of its Indonesian coal assets for $406 million, AFX reported.
<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">A 40.83% interest in the Adaro mine
and coal trading businesses and a 50% interest in a bulk loading terminal were
sold to a consortium led by Indonesian businessman Edwin Soeryadja.
<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><st1:City
w:st="on"><st1:place w:st="on"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">New
Hope</SPAN></st1:place></st1:City><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"> said it will now complete a
strategic review, including reviewing options to utilize proceeds from the sale,
with an announcement to be made by the time <st1:City w:st="on"><st1:place
w:st="on">New Hope</st1:place></st1:City>'s annual results are released in
September.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The Government of Singapore
Investment Corporation (GIC) is part of the consortium taking the <st1:City
w:st="on"><st1:place w:st="on">New Hope</st1:place></st1:City> share.
<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><I
style="mso-bidi-font-style: normal"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Business Times</SPAN></I><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"> said it was understood that GIC
will buy a direct stake worth about $50 million in the Adaro coal mine and the
Indonesian Coal Terminal (IBT) via Alam Tri Abadi, a company set up by
consortium leaders Edwin Soeryadjaya, Teddy Rachmat, Benny Subianto and
Garibaldi Boy Thohir.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The deal was struck despite a legal
dispute over ownership of the mine, with a challenge currently pending in the
<st1:country-region w:st="on"><st1:place
w:st="on">Singapore</st1:place></st1:country-region> courts.<SPAN
style="mso-spacerun: yes"> </SPAN><o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><STRONG>OIL &
GAS<o:p></o:p></STRONG></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">Pertamina
Gets Injection <o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The government said it will give
Rp10 trillion ($1.05 billion) to Pertamina on Monday (27/6/05) to pay for fuel
imports as fears grew that power and gasoline supplies could quickly run short.
<SPAN style="mso-spacerun: yes"> </SPAN><o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">"So far we have paid (Pertamina)
Rp15 trillion in the first quarter," Mulia Nasution, Director General of
Treasury at the Finance Ministry, told reporters, Dow Jones Newswires reported.
The payments are part of a total of Rp76 trillion the government has budgeted
for fuel subsidies in 2005. <o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Nasution said the government has
enough liquidity to cover Pertamina's subsidy payments. "We don't have any cash
flow problem," he said without elaborating. <o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Early last week, the country had
domestic stockpiles of premium petrol and diesel fuel of just 12.7 and 14.5 days
respectively. Another 3.2 million barrels of fuel had been unloaded and were
being distributed. <o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">“We are making a serious effort to
ensure that there is no prolonged fuel shortage,” advisor to Coordinating
Economics Minister Lin Che Wei told <I
style="mso-bidi-font-style: normal">Business Times</I>. He added that there was
no question that the government would fund fuel imports, but said procedural
issues needed to be addressed. </SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p></o:p></SPAN> </P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">ExxonMobil
‘Deal’ on Cepu <o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Oil company Exxon Mobil Corp. has
accepted a revenue-sharing agreement with state-owned oil company Pertamina over
the Cepu block on the Central-East Java border, but talks on a final deal are
ongoing, the government said Thursday (<st1:date w:st="on" Year="2005" Day="23"
Month="6">23/6/05</st1:date>).<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Rizal Mallarangeng, spokesman of the
government team negotiating the dispute over revenues from the Cepu block, told
reporters that progress had been achieved, the Associated Press
reported.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Deva Rachman, a Jakarta-based
spokeswoman for ExxonMobil's local unit, declined to comment on whether the
company had reached a revenue-sharing agreement, saying that it had “a
constructive engagement” with the government in resolving the Cepu dispute. She
added that several weeks of further discussions over technical terms would lie
ahead, even after agreement on a broad outline was reached.
<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Mallarangeng said Exxon Mobil had
accepted a 6.5% share of revenue from Cepu's output if oil prices are above $45
a barrel and a 13.5% share of revenue if the prices fall below
$35.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">“If the oil price is lower we'll
give them a higher revenue split, so they can still make reasonable profit,” he
said.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Malarangeng said the talks, which
began in April, had focused on updating <st1:country-region w:st="on"><st1:place
w:st="on">Indonesia</st1:place></st1:country-region>'s longstanding model for
production-sharing contracts with foreign energy producers to give more
incentives for companies to pursue sometimes risky oil-and-gas exploration
investments, <I style="mso-bidi-font-style: normal">The Wall Street Journal</I>
said.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Exxon Mobil bought the rights to the
Cepu block in 1988. It soon discovered that the block contained significant oil
and wants a new agreement to replace its current contract, which expires in
2010, before committing to investment. <o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The Cepu block contains estimated
reserves of some 600 million barrels of crude oil and production would assist
<st1:country-region w:st="on"><st1:place
w:st="on">Indonesia</st1:place></st1:country-region> to return to a net oil
exporter position. </SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p></o:p></SPAN> </P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">Stay
a Member: OPEC <o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The Organization of Petroleum
Countries has asked <st1:country-region w:st="on"><st1:place
w:st="on">Indonesia</st1:place></st1:country-region>’s government to reconsider
any plans it may have to downgrade its membership, government officials told Dow
Jones Newswires Friday. <o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">OPEC's acting Secretary General
Adnan Shihab-Eldin wrote on June 17 to Minister of Energy and Mineral Resources
Purnomo Yusgiantoro, urging <st1:country-region w:st="on"><st1:place
w:st="on">Indonesia</st1:place></st1:country-region> to remain a full OPEC
member.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">"<st1:country-region
w:st="on"><st1:place w:st="on">Indonesia</st1:place></st1:country-region> will
enjoy and continue to have the full support of OPEC members," the letter seen by
Dow Jones Newswires said.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The letter is a reaction to a
recommendation earlier this year by a government panel that the country
downgrade its OPEC membership to ‘observer’ status.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The panel said a downgrade in
Indonesia's OPEC status would reduce the country's financial commitments to the
organization at a time when falling output has brought Indonesia, Southeast
Asia's sole OPEC member, to a net oil importer position.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><st1:country-region
w:st="on"><st1:place w:st="on"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Indonesia</SPAN></st1:place></st1:country-region><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"> is in no rush to make a decision on
its OPEC membership. A special adviser to the Minister for Energy, Rachmat
Sudibjo, has said a decision will be made on the panel’s recommendations within
two years.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">OPEC members also expressed their
desire that <st1:country-region w:st="on"><st1:place
w:st="on">Indonesia</st1:place></st1:country-region> remain in the grouping
during the organization's meeting in <st1:City w:st="on"><st1:place
w:st="on">Vienna</st1:place></st1:City> last week, a government official said,
Dow Jones added.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Member states offered to help
<st1:country-region w:st="on"><st1:place
w:st="on">Indonesia</st1:place></st1:country-region> boost oil production,
including assistance in the construction of new oil refineries, the official
said, without elaborating.</SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p></o:p></SPAN> </P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-layout-grid-align: none"><st1:country-region
w:st="on"><st1:place w:st="on"><B style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">Thailand</SPAN></B></st1:place></st1:country-region><B
style="mso-bidi-font-weight: normal"><SPAN
style="FONT-SIZE: 16pt; FONT-FAMILY: 'Arial Narrow'; mso-bidi-font-family: 'Courier New'">'s
PTT Looks at Natuna Gas<o:p></o:p></SPAN></B></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The Petroleum Authority of Thailand
PCL (PTT) is considering buying gas from the East Natuna D-Alpha block operated
by ExxonMobil Oil Indonesia Inc, <I style="mso-bidi-font-style: normal">The
Jakarta Post</I> reported, quoting Minister of Energy and Mineral Resources
Purnomo Yusgiantoro.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Yusgiantoro said PTT expressed its
interest in building a gas pipeline connecting <st1:country-region
w:st="on"><st1:place w:st="on">Thailand</st1:place></st1:country-region> with
the East Natuna D-Alpha block in the <st1:place w:st="on">South China
Sea</st1:place>.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">“They also want to buy LNG
(liquefied natural gas) as they're building an LNG terminal,” Yusgiantoro said
after he met a visiting PTT delegation.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">He said a number of undeveloped
fields in <st1:place w:st="on">East Kalimantan</st1:place> may supply the gas
for <st1:country-region w:st="on"><st1:place
w:st="on">Thailand</st1:place></st1:country-region>, where a LNG terminal
project will be ready to receive LNG shipments by 2010 with an initial capacity
of 5.0 million tons a year, which is expected to double within three years of
operation.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">PTT executive vice president Tevin
Vongvanich was quoted as saying that natural gas is expected for delivery into
<st1:country-region w:st="on"><st1:place
w:st="on">Thailand</st1:place></st1:country-region> by
2015.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: center; mso-layout-grid-align: none"
align=center><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><STRONG>===***===<o:p></o:p></STRONG></SPAN></P></DIV></BODY></HTML>