Corporate News in Brief

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

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

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

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

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

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

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

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

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