Cable Industry in Indonesia

ISSN 0853-2086
INDONESIAN COMMERCIAL NEWSLETTER

MONTHLY REPORT
MARKET INTELLIGENCE REPORT ON CABLE INDUSTRY IN INDONESIA
Indonesian Commercial Newsletter Since 1978 Published by PT Data Consult Founder : Sulaeman Krisnandhi Editor-in-Chief : D. Ganjar Sidik Senior Editors : - Hendrawan Tranggana - Agustina R. Effendy
MARCH 2009
PT DATA CONSULT
BUSINESS SURVEYS AND REPORT
Maya Indah Building Jl. Kramat Raya No. 5L, Jakarta Pusat Phone: 3904711, 3901877; Fax.: 3901877 E-mail: datacon@idola.net.id Website:http://www.datacon.co.id
List of Content
INDONESIAN COMMERCIAL NEWSLETTER MARCH 2009
FOCUS: PERFORMANCE OF LISTED COMPANIES IN 2008 REFLECTS THE STRENGHT OF INDONESIAS ECONOMIC FUNDAMENTALS .......................................................................... 1 Profit of companies in the agricultural sector up sharply .............................................................. 1 Good performances of listed companies contribute to economic growth..................................... 4 INDUSTRY PROFILE: DEVELOPMENT OF CABLE INDUSTRY IN INDONESIA.......................................................... 6 Introduction ................................................................................................................................... 6 Types of cable............................................................................................................................... 7 Standardization of cable ............................................................................................................. 11 Cable producers and production capacity .................................................................................. 12 Cable producers operate at high capacity .................................................................................. 14 Profile of main players ................................................................................................................ 15 Cable exports up......................................................................................................................... 18 Imports ........................................................................................................................................ 25 Consumption growing ................................................................................................................. 25 Cable prices down 5% ................................................................................................................ 26 Prospects of Cable Industry........................................................................................................ 26 Conclusion .................................................................................................................................. 28 COMPANY PROFILE : PT. SUCACO TBK ..................................................................................................................... 29 Backgrounds ............................................................................................................................... 29 Cable industry becomes a locomotive ........................................................................................ 29 Marketing .................................................................................................................................... 30 Standardization of Industry ......................................................................................................... 30 Subsidiaries ................................................................................................................................ 31 Financial performance ................................................................................................................ 32 INDUSTRY : CABLE BASIC MATERIAL INDUSTRY .................................................................................... 34 Copper cathode .......................................................................................................................... 34 Copper Wire Rod ........................................................................................................................ 35 Copper wires............................................................................................................................... 36 Aluminum ingot ........................................................................................................................... 36 Aluminum rod and aluminum wire .............................................................................................. 39 Conclusion .................................................................................................................................. 39 INDUSTRY : FIBER OPTIC CABLE INDUSTRY ............................................................................................ 41 Introduction ................................................................................................................................. 41 Producers of fiber optic cable ..................................................................................................... 41 Profile of main producers of fiber optic ....................................................................................... 42 Production still low ...................................................................................................................... 45 Exports and Imports.................................................................................................................... 45 Conclusion .................................................................................................................................. 46
March 2009 - Indonesian Commercial Newsletter
List of Content
ENERGY : SECOND PHASE OF ELECTRICITY CRASH PROGRAM AND DEVELOPMENT OF TRANSMISSION AND DISTRIBUTION NETWORKS............................................................... 48 Backgrounds .................................................................................................................. 48 Second Phase of Power Plant Crash Program................................................................... 49 Development of transmission networks ............................................................................. 55 Transmission Development Projects ................................................................................. 55 Large transmission and distribution systems still needed .................................................... 57 Fiscal Stimulus in electricity sector ................................................................................... 58 TELECOMMUNICATION : DEVELOPMENT OF OPTIC FIBER NETWORK IN INDONESIA ............................................. 59 PT Telkom continues to expand net networks............................................................................ 60 Contractors of fiber optic projects in Indonesia .......................................................................... 62 Development of Palapa Ring Project.......................................................................................... 62 Conclusion and prospects .......................................................................................................... 64 FINANCE : PLN TO ISSUE BOND TO FINANCE SECOND PHASE OF PROGRAM TO BUILD 10,000 MW POWER PLANTS................................................................................................................65 Backgrounds .................................................................................................................. 65 Second Crash Program to cost US$17.3 billion ................................................................. 66 PLNs bonds valued at Rp1.5 trillion ................................................................................. 67 Financial performance ..................................................................................................... 68 Financing by state banks ................................................................................................. 68 PLNs bonds bought by local investors .............................................................................. 69 CORPORATE NEWS IN BRIEF: Semen Tonasa to start construction of new factory to cost US$318 million ........................... 70 Bakrie Sumatera Reports Rp2.9 trillion in income. ............................................................. 70 Bukit Asam to invest US$20 million power generating project ............................................. 70 Kideco posts 141.47% in net profit ................................................................................... 71 Philips lighting to build energy saving lamp factory ............................................................. 71 Antam-Krakatau Steel to invest $63.5 million Steel project.................................................. 71 ECONOMICS NEWS IN BRIEF: Govt offers 8 infrastructure projects valued at Rp4.4 trillion ................................................. 72 Investment in textile industry feared to fall on shrinking orders ............................................ 72 Telecom and informatics industry asked to have higher local content................................... 72 Indonesia to use more organic fertilizers for food crops ...................................................... 73 Government maintains zero % export tax on CPO ............................................................. 73 APPENDICES:
Directory of Banking companies in Indonesia .............................................................. 74

ECONOMIC INDICATOR: Economic Indicators.................................................................................................................... 76 Export and import........................................................................................................................ 77 Gross Domestic Product............................................................................................................. 78 Oil Price and Foreign Exchange .................................................................................................79
The Indonesian Economic Trends ............................................................................... 80 * * *
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Indonesian Commercial Newsletter - March 2009
FOCUS
PERFORMANCE OF LISTED COMPANIES IN 2008 REFLECTS THE STRENGHT OF INDONESIAS ECONOMIC FUNDAMENTALS The fundamentals of Indonesian economy amid the global financial crisis is quite strong as indicated by the performances of publicly listed companies in 2008. Based on their 2008 financial reports already published, the income of 45 most liquid (LQ45) listed on the Indonesian Stock Exchange for 2008, grew 34%. Several mining companies like Indo Tambang Raya Megah, Tambang Batubara Bukit Asam, and Adaro Energy even recorded a growth of more than 40% in 2008 in volume and value.
Table - 1 Financial performance of coal companies (Rp billion)

Issuers Adaro Energy Bumi Resources Bayan Resources Indika Energy Tbk Indo Tambang Raya Megah Tambang Batubara Bukit Asam Total Source: BEI, Data Consult/ICN Income 2008 2007 18,093 11,593 32,095 21,522 4,877 3,439 2,314 2,337 12,750 7,052 7,216 4,124 77,345 50,067 % Growth 56.07 49.13 41.79 -0.96 80.81 74.99 54.48 Net profit 2008 2007 887 133 6,131 7,496 21 253 1,085 265 2,274 510 1,708 726 12,106 9,382 % 567.82 -18.21 -91.81 309.38 346.25 135.16 29.03
Among those operating in the mining sector a decline in net profit was recorded by tin and nickel mining companies as the price of the two commodities declined in 2008 after peaking in 2007. Oil companies also recorded a decline in profit in 2008 as the price of oil plunged to the lowest level in two years. PT Aneka Tambang in 2008 recorded a net profit of only Rp1.3 trillion in 2008 down from Rp5.1 trillion in 2007 or a decline of 73%. Similarly PT Timah and PT Inco posted a sharp fall in profit.
Profit of companies in the agricultural sector up sharply Eight listed companies in the farm and plantation sector including Astra Argo Lestari, Tunas Baru Lampung, Bakrie Sumatra Plantation, Sampoerna Agro, Astra Agro Lestari, PP London Sumatera BISI International and Gozco Plantation recorded a 47.8% increase in income in 2008 year-on-year.
Indonesian Commercial Newsletter March 2009
Focus
Some of the companies recorded a decline but other recorded an increase in net profit in 2008 year-on-year. Astra Agro Lestari in 2008 reported a net profit of Rp 2.63 trillion or an increase of 33% from Rp 1.97 trillion in 2007. Bakrie Sumatera Plantation reported a decline of 16% in net profit. However, altogether the 8 companies recorded a 50.3% increase in net profit in 2008
Table - 2 Financial performance of listed companies in the farm and plantation sector (Rp billion)
Income 2008 2007 8,161 5,961 3,956 1,844 3,846 2,930 2,931 1,949 2,288 1,599 1,628 890 3,846 2,930 291 133 26,948 18,235 % Growth 36.9% 114.5% 31.3% 50.4% 43.1% 83.0% 313% 1190% 47.8% Net profit 2008 2007 2,631 1,973 63 97 928 564 174 207 440 215 398 150 928 505 55 26 5,616 3,737 % 33.3% -34.9% 64.5% -16.0% 104.3% 165.3% 83.8% 112.2% 50.3%
Issuers Astra Agro Lestari Tunas Baru Lampung London Sumatra Ind Bakrie Sumatera Plantations Sampoerna Agro Bisi International PP London Sumatera Gozco Plantation Total Source: BEI, Data Consult/ICN
Listed companies operating in consumer goods industry recorded a strong growth of 24% in income and a 17.4% increase in net profit year-on-year in 2008.
Table - 3 Financial performance of listed companies in consumer goods industry (Rp billion)
Income Issuers 2008 2007 Unilever Indonesia 15,578 12,545 Gudang Garam 30,252 27,389 Indofood 38,799 27,858 Kalbe Farma 7,877 7,005 Bentoel International 5,941 4,586 Total 98,447 79,383 Source: BEI, Data Consult/ICN % Growth 24.2% 10.5% 39.3% 12.5% 29.5% 24.0% Net profit 2008 2007 2,407 1,965 1,880 1,444 1,034 980 707 706 239 243 6,268 5,337 % 22.5% 30.3% 5.5% 0.2% -1.6% 17.4%
Generally LQ45 companies posted an increase in net profit in 208. Only 10 of them recorded a decline in profit and one, Barito Pacific, suffered a net loss. The
Focus
loss was recorded by its petrochemical subsidiary Chandra Asri, which was acquired in 2007. Large issuer like Astra International in 2008 recorded a 38.3% increase in income from Rp 70 trillion in 2007 to Rp97 trillion in 2008 with profit rising from Rp 6.5 trillion to Rp 9.2 trillion or an increase of 41%. See the following table.
Table - 4 Financial performance of 40 LQ45 companies . (Rp million)

Income Issuers/sector 2008 2007 70,183,000 27,858,304 7,004,909 12,544,901 336,850 8.679.504 7.323.643 3.754.906 9.600.800 3,641,773 2,336,961 16,488,495 2,645,042 19,173,564 11,597,147 25,062,332 13,490,011 27,088,755 5.370.686 6,678,533 4,462,234 5,894,750 18,165,598 2008 Profit/Loss 2007) Profit growth % 41.0% 5.5% 0.2% 22.5% -7734 % 37.0% 78.1% 66.6% 42.1% 105.3% 309.4% -8.0% 154.6% 28.7% 36.1% 23.2% -27.7% 22.2% -55,0% 36.2% -17.7% 9.8% 78.2%
Multifarious Industries Astra International 97,064,000 Consumer Goods Industry Indofood 38,799,279 Kalbe Farma 7,877,366 Unilever Indonesia 15,577,811 Base and Chemical Industry Barito Pacific 18,322,898 Charoen Pokphand Indonesia 13,212,988 Indocement 9,780,498 Holcim Indonesia 4,803,377 Semen Gresik 12,209,846 Infrastructure, Utility, Transport Berlian Laju Tanker 7,005,851 Indika Energy 2,314,448 Indosat 18,659,133 Jasa Marga 3,353,632 Finance Bank Central Asia 23,179,232 Bank Negara Indonesia 13,460,772 Bank Rakyat Indonesia 30,631,869 Bank Danamon Indonesia 16,118,989 Bank Mandiri 31,989,244 Bank CIMB Niaga 6.235.430 Bank International Indonesia 7,216,747 Bank Pan Indonesia 6,002,706 Trade, Services and Investment AKR Corporindo 9,472,528 United Tractors 27,903,196
9,191,000 6,519,000 1,034,389 980,357 706,822 705,694 2,407,231 1,964,652 3,399,758 44,533
253.977 185.448 1.745.500 980.103 282.220 169.410 2.523.544 1.775.408 1,557,962 758,982 1,084,742 264,969 1,878,522 2,042,043 707,797 277,981 5,776,138 4,489,252 1,222,485 897,928
5,958,368 4,838,001 1,530,022 2,116,915 5,312,821 4,346,223 678.189 1.508.386 480,468 701,361 352,821 852,252
210,032 191,208 2,660,742 1,493,037
Focus
Table 4 contd
Income Issuers/sector 2008 2007 2008 Profit/Loss 2007) Profit growth %
Mining Adaro Energy 18,092,501 11,592,639 887,198 88,533 902.1% Aneka Tambang 9,591,981 12,008,202 1,368,139 5,118,987 -73.3% Bayan Resources 4,876,938 3,439,492 20,710 252,740 -91.8% Elnusa 2,543,913 2,103,690 133,772 100,140 33.6% Inco 1,312,097 2,325,858 359,316 1,173,036 -69.4% Indo Tambangraya 1,316,981 771,817 234,925 55,785 321.1% Medco Energi 1,286,327 1,077,996 280,204 6,599 4146.2% Timah 9,053,082 8,542,393 1,342,358 1,784,592 -24.8% PT Tambang Batubara Bukit Asam 7,216,228 4,123,855 1,707,771 726,211 135.1% Agriculture Astra Agro Lestari 8,161,217 5,960,954 2,631,019 1,973,428 33.3% Bisi International 1,627,821 889,588 398,401 150,192 165.3% London Sumatra Ind 3,846,153 2,929,993 927,554 564,034 64.5% Sampoerna Agro 2,288,143 1,598,930 439,516 215,082 104.3% Tunas Baru Lampung 3,955,846 1,844,206 63,336 97,227 -34.9% Bakrie Sumatera Plantations 2,931,419 1,949,018 173,568 206,575 -16.0% Property and Real Estate Ciputra Development 1,303,221 1,347,518 202,219 167,961 20.4% Lippo Karawaci 2,553,306 2,091,353 370,872 353,027 5.1% Wijaya Karya 6,559,077 4,284,581 156,034 129,138 20.8% Notes: Financial reports of some large companies in LQ45 are still not published yet Source: BEI, Data Consult/ICN
Good performances of listed companies contribute to economic growth Good performances of publicly traded companies in 2008 and in the first quarter of 2009 contributed substantially to growing confidence of investors and the business sector to the countrys economy. Amid heavy pressures with shrinking exports and difficulty in securing foreign funds are among big challenges to be faced by many countries including Indonesia and other ASEAN countries. Some neighboring countries are facing greater problems such as Malaysia and Singapore, which are more export 4
Focus
oriented and foreign investment. The Indonesian condition, which was previously a weakness, has become a factor contributing to the countrys economic resilience. The strength of the domestic market is shown by the fact that many listed companies, oriented to the domestic market, such as those producing consumer goods, posted substantial profit in 2008. Slump has also hit the domestic market but some indicators show improvement in the market condition. Inflation is well under control, allowing the central bank to cut its benchmark interest rate to as low as 7.5%. If banks follow the lead by taken by the central bank, and boost credits, the purchasing power of the people will increase. Despite the decline in exports, many Indonesian commodities are still high in demand in export market. Exports of palm oil and coal are picking up. The success in the recent legislative elections at least from the security point of view, also contributed to improvement of the confidence of the business sector. Indonesia fares better than many other countries facing the devastating impact of the global financial crisis. Thailand is facing political turmoil and security problem undermines political stability in the Philippines. Even Malaysia, and Singapore, which have been much more successful in economic development are in no better condition than Indonesia. With healthy economic fundamentals, the future government will have greater confidence in bringing about greater prosperity to the country in the coming years.
**dgs**
INDUSTRY PROFILE
DEVELOPMENT OF CABLE INDUSTRY IN INDONESIA
Introduction The countrys cable industry was badly hit by the 1998 crisis. Until 2004, utilization of the production capacity of the industry was only around 25%- 30% of installed production capacity. The industry began to revive only in the past three years starting 2006. In 2007, the countrys cable production totaled 300,000 tons or 65% of the installed capacity of 445,000 tons. Brisk developments in the power sector and growing exports have also boosted the industry lately. The fast growing demand for electricity has forced the government to launch am ambitious plan called crash program to build coal fired power plants with a total capacity of 10,000 megawatts to be completed in 2010-2011. The program is to be followed with a second phase with the same capacity. The first program is in progress pushing up demand for electric cable. Demand for cables has increased not only n the domestic market but also in export market such as Middle East. The oil rich region, which earned windfall profit with the soaring price of oil since 2006, is safe from the impact of the global financial crisis. Property and infrastructure development continue to be brisk in Middle East. The projects need large supply of electric cables including transmission and distribution cables. The revival of the cable market in 2007 and 2008 was reflected by the financial performance of listed cable producers. PT Sumi Kabel reported sales at only Rp.976 billion in 2004. In 2006 it sales shot up to Rp1,914 billion . Similarly, sales of PT Supreme Cable (SUCACO) surged to Rp2,281 billion in 2007 from Rp1,483 billion in 2006. A setback, however, came toward the end of 2008 when sales began to sink including in export market. As a result of the global financial crisis. Increase in the prices of basic materials like copper contributed to the problem faced by cable industry lately. Many cable producers suffered losses on foreign exchange as they bought the basic materials in US dollar the value of which surged facing the rupiah. Despite the gloomy outlook lately, the prospects for cable industry are still encouraging in the country with the big plan of the government in the electricity sector.
Indonesian Commercial Newsletter - March 2009
Industry Profile
Types of cable Cable industry in Indonesia has expanded and could produce various types of cable electric cable, telecommunication cable, control cable, fiber optic, etc. Electric cables consist of different types by voltage High Voltage (HV), Medium Voltage (MV), and Low voltage. Electric cables could also be divided into Bare Aluminum Conductor and Bare Copper Conductor. Generally bare cables are aerial cables having extra high, high and medium voltage . Almost all large cable producers such as PT Sucaco, Sumi Indo Kabel, Voksel elektrik, produce all types of cables both electric cable, telephone cables, and fiber optic. Table - 1 Types of cables produced in Indonesia
Electric cable XLPE HV PT. Kabelindo Murni Tbk. PT. GT Kabel Indonesia Tbk. PT. Sucaco Tbk. PT. Terang Kita PT. Sumi Indo Kabel Tbk. PT. Jembo Cable Company Tbk. PT. Nikkatsu Electric Works PT. Cahaya Angkasa Abadi PT. Sinar Merbabu PT. Voksel Electric Tbk. PT. Ewindo PT. Phenolic Prima Indonesia PT. Puji Cahaya PT. Kawat Mas Prakasa X X XLPE MV XLPE LV PVC LV Cu Rod Al Rod Bare Copper Cond Bare Alu Cond Telecom Cable Fiber Optic Sp. Cable Enam -eled Wire Others
X X X X X X
X X X X X X
X X X X X X X X X X X X X X
X X X X X X
X X X X X X
X X X X X X X X X X X X X X
X X X X X X X X X X X X X
X X X X X X X
X X
X X
Industry Profile
Table 1 contd
Electric cable XLPE HV PT. Furin Jaya PT. Federal Mardhika Citramandiri PT. Karya Kabel Taliarta PT. Star Impactama Indah PT. Indoka Jaya PT. Citra Mahasurya Industries PT. Magnakabel Nusantara PT. Olex Cables Indonesia PT. Anekakabel Ciptaguna PT. Autocomp Systems Indonesia PT. Communication Cable Systems Ind. PT. Prysmian Cables Indonesia PT. Indowire Prima Industrindo PT. BICC Berca Cables PT. Prima Cable Indo PT. Aneka Kabel Elektrik PT. Cetral Wire Industrial PT. Furukawa Supreme Optical Cable PT. Sutanto Arifchandra Electronic X XLPE MV XLPE LV PVC LV X Cu Rod X Al Rod Bare Copper Cond Bare Alu Cond Telecom Cable Fiber Optic Sp. Cable Enam -eled Wire Others
X X X X X X X
X X
X X
X X X
X X
X X X X X X X X X X X X X X X X X X X X X X X X X
Source: APKABEL
Industry Profile
Each cable has an identity showing the type of conductor, type of isolator, types of insulator, etc. Cable with NYY code is cable with copper conductor (using the code of N), PVC isolator, in two layers ( YY code) Cable could have several types of conductors and isolators and with toughening material or protector from steel tape. For example, high voltage underground cables are apart from a number of layers of isolator, are also given steel tape protectors to protect them from being damaged from possible impact of hard or sharp material . See the following table.
Table 2 Cable code names and materials Types of cable Cable With Copper Conductors Standard Twisted Cable With Copper Conductor Cable With Aluminum Conductors Concentric Copper Wire Screening Polyvinylchloride ( PVC ) Insulation Galvanized Flat Steel Wire Armour Polyethylene ( PE ) Insulation Galvanized Round Steel or Aluminum Tape Amour Cross Linked Polyethylene Insulation Gb Steel Tape Helix ( following F or R) Copper Tape Screening Double Tape Steel or Aluminum Tape Amour Concentric Copper Conductor Over Each Core Insulated Sheathed Cable Standard Twisted Cable re Circular Source : PT Sucaco Code N NF NA C Y F 2Y R 2X S B CE CE XLPE PE NFA
The cable products of Sucaco include low voltage, medium voltage and high voltage. Apart from electric and telephone cables, Sucaco produces enameled wires, which include Polyvinyl Formal Copper Wire, Polyester-imide Copper Wire, Polyester Copper Wire, Polyurethane Copper Wire, Polyester Nylon Copper Wire, and Polyester Amide Imide Copper.
Industry Profile
Table 3 Types of electric and telecommunication cable produced by Sucaco
Types of cable Low voltage Medium voltage BCC - H NF C34- N2XK2Y/NA2XK2Y 110,BCC-Hard 150 KV SPLN 415:81,BCC Hard ASTM B8:1995 BCC Soft MfgBCC Soft SPLN, BCC Soft Man Spec BCC 1/2 Hard SPLN 41-4:84 BCC-H ASTM B8:1995 Rated Voltage : 1,8/3 kv up to 18/30 kv SPLN 43-5/IEC 502 Single Core Power Cable, Copper Or Aluminum Conductor, XLPE Insulated, With Or Without water BlockingTape, Copper wire or Copper Tape Screened,PVC Sheathed. Used for Distribution, Indoor and outdoor Installation in Conduit Troughs or trays or in the ground where not sustain mechanical damage Cable specification INDOOR CABLES SII 0710 SCREEN
Electric Cable Type
High Voltage N2XK2Y/NA2XK2Y 150 KV
Cable specification Cable content Bare Copper Conductor Half Hard Or Hard Used For Overhead Transmission & Distribution
IEC 840 Copper / Aluminum conductor, XLPE Insulated, Lead sheathed, PE Sheathed Cable
Telecommunication Cable
Cable type R-V (Pe)V
Cable content Copper Conductor, PVC insulated, Aluminum tape screened, PVC sheathed. Used for indoor installation and telephone.
Source : Sucaco
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Industry Profile
Standardization of cable The government has determined 11 national standards for cable such as SNI determined by the industry ministry including SNI 04-2697-1992 and SNI 043234-1992. SNI 04-2697-1992 is used for electric cables using XPLE as isolator and electric cable having voltage raging from 1 kV to 30 kV. SNI 043234-1992 is used for flexible cable isolated and sheathed with PVC having nominal voltage of 500 V (low voltage) that is the type of NYMHY The SNI was determined in 1988 through a decision of the industry and trade minister No. 407/M/SK/10/1980 on the application of Indonesian industrial standard (SII) and the use of SII for six types of low voltage standard electric cable and in 1988 had through a decision of the Minister No. 74/M/SK/2/1988 required the use of SII and the SII mark for 5 types of flexible electric cable : SII.2256-87; SII.2257-87; SII.2258-87; SII. 2259-87 and SII. 2260 -87. Starting 1992 , SII was changed with Indonesia National Standard (SNI) base don a decision of the Industry and Trade Minister. Table 4 Indonesia National Standard (SNI) for electric cables No
1 2 3
Standard
SNI 04-2697-1992 SNI 04-2698-1999 SNI 04-2699-1999
Title
XPLE for isolation of electric cable with voltage of 1 kV to 30 kV PVC isolated wire , voltage of 450/750 Volt (NYA) Isolated cable and sheathed with PVC with voltage of 300/500 volt (NYM) Isolated ground cable and sheathed with PVC protected with steel wire or aluminum 0.6/1 kV (NYFGbY/NAYFGbY/NYRGbY/NYRY /NA YRY) Isolated ground cable and sheathed with PVC with voltage of 0.6/1 kV (NYY/NAYY) Isolated ground cable and sheathed with PVC protected with steel or aluminum wires with voltage of 0,6/1 kV (NYBY/NAYBY) Flexible cable isolated and sheathed with PVC with voltage of 500 V (NYMHY) Flexible cable isolated and sheathed with PVC with nominal voltage of 500 V (NYMHY Oval)
Remarks
Min. decision 407/M/SK/10/1980
SNI 04-2700-1999
SNI 04-2701-1999
SNI 04-6122-1999
7 8
SNI 04-3234-1992 SNI 04-3235-1992
Min. decision 74/M/SK/2/1988
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Industry Profile
Table 4 contd No Standard
9 10 SNI 04-3236-1992 SNI 04-3237-1992
Title
Flexible wire isolated with PVC with nominal voltage of 1000 V (NYAF) Flexible cable twins and triplets isolated with PVC for working voltage of up to 380 V (NYY/NYD) Flexible cable twins to triplets to quintuplets isolated , sheathed with PVC with nominal voltage of 380 V (NYIFY)
Remarks
11
SNI 04-3238-1992
Cable producers and production capacity After the 1998 crisis , there was almost no addition in the number of cable factories and installed capacity. The member of the association of cable producers (APKABEL), which groups almost all cable factories in the country did not change much . In 1997 , there were 35 members of the association and 2006, the number slightly declined to 34 companies. Base don official data at the industry ministry , among 48 registered cable factories in 2005 , only 33 were in operation. Number of cable factories grouped in Apkabel 1974 = 5 companies 1997 = 35 companies 2000 = 35 companies 2002 = 36 companies 2005 = 33 companies 2006 = 34 companies
The production capacity of the countrys cable industry has not changed much since 2004. Base din data at APKABEL the production capacity is around 445,000 tons year for all types of cable . Table - 5 Indonesias cable production capacity, 2006 Production capacity Types of cable (ton/ year) Telecommunication Cable 132,900 Power Cable 258,650 Special Cable 43,150 Enameled Wire 8,800 TOTAL 445,090 Source: Apkabel 12
Industry Profile
Most cable factories date back to year before the 1998 crisis. Low demand caused factories to operate much below their production capacity. Increase began only in 2005 to peak in 2007 . New investment began in cable industry that year including for capacity expansion. A Malaysian company, PT Wonderful Wire and Cable , built a factory in Medan . Another foreign company PT Prysman invested for capacity expansion. Currently there are 15 major cable makers in Indonesia . Most of them are old companies like PT Tranka Kabel that came on line in 1952. PT Sumi Indo Kabel Tbk (Perusahaan) was established on 23 July 1981, with the name of PT Industri Kawat Indonesia. The name of the company was changed with PT IKI Indah Kabel Indonesia in 1982. PT Voksel Electric Tbk was established in 1971 . Later its status was changed into a foreign investment (PMA) company after establishing cooperation with Showa Electric Wire & Cable Co. Ltd from Japan. There are six publicly listed cable makers -- PT Supreme Cable Manufacturing and Commerce TBK (SUCACO), PT Sumi Indo Kabel, PT Kabelindo, PT Voksel Electric, PT KMI Wires and Cables and PT Jembo Cable.
Table - 6 Indonesias main cable makers

Companies PT. WALSIN LIPPO INDUSTRIES PT. TERANG KITA PT. SUMI INDO KABEL Tbk. PT. KMI WIRES AND CABLES (Formerly PT GT KABEL INDONESIA) TBK PT. SUPREME CABLE MANUFACTURING CORPORATION TBK PT. KABELINDO MURNI TBK PT. PULUNG COPPER WORKS PT. VOKSEL ELECTRIC TBK PT. SHIKING INDONESIA PT. ANEKA KABEL CIPTAGUNA Status PMA* PMDN* PMA PMDN PMDN 25,200 PMDN PMDN PMA PMA PMDN 23,500 21,840 18,150 18,000 17,280 Rp. Rp. Rp. Rp. US$ Rp. 205,583,400,000 20,000,000,000 2,100,860,000 250,000,000,000 11,750,000 12,588,000,000 Production capacity (ton/year) 38,500 38,000 36,000 29,750 Investment US$ Rp. Rp. Rp. 134,211,391 22,794,000,000 321,000,000,000 162,193,790,000
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Industry Profile
Table 6 contd
Companies PT PRYSMIAN CABLE INDONESIA (Formerly PT. PIRELLI CABEL INDUSTRI ) PT. JEMBO CABLE COMPANY TBK PT. BICC BERCA CABLES PT. JAYAKO MURNI ABADI Status PMA 15,200 PMDN PMA Non Facility PMDN 15,195 10,000 8,400 7,800 US$ Rp. US$ Rp. Rp. 67,300,000 34,627,000,000 35,198,000 5,330,000,000 25,000,000,000 Production capacity (ton/year) Investment
PT. CITRA MAHA SURYA INDUSTRY *)PMA = Foreign Investment Company PMDN = Domestic Investment Company Source: Data Consult, Apkabel, BKPM. Industry Ministry
Cable producers operate at high capacity The countrys cable industry was hit hard by the monetary crisis in 1997/1998 on falling demand . Capacity utilization was only 25%-30% . The condition improved only in 2004 and 2005 , when the countrys economy began to recover from the crisis. The growth of the industry peaked in 2007 when the government launched its 10,000 megawatt crash program in the electricity sector pushing up demand for electric cables. Demand also rose in export market notable in Middle East where the construction sector was brisk amid the soaring oil prices. Strong demand in 2007 resulted in an increase in capacity utilization of the countrys cable industry to 65%-70%. The capacity utilization was expected to scale up further in 2008 to around 90% of the total installed capacity of 445,090 ton, if the crash program in the electric sector ran as expected. Table - 7 Indonesias cable production, 2004 - 2008 Production (ton) 2004 111.3 2005 133.5 2006 178.0 2007 289.3 2008 *) 378.3 Average growth (%) Note : *) provisional figure Source: Data Consult/ICN Year Growth (%) 20 33 63 31 37
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Industry Profile
A faster growth was recorded in the production of electric cable to follow the brisk development in the electric sector . Meanwhile, almost all telephone operators including state telecommunication company PT Telkom Tbk use fiber optic cable in their new projects. All producers of metallic cable could produce fiber optic cable. The government has a big telecommunication project, Palapa Ring, using fiber optic cable. Toward the end of 2008, demand for cables began to decline as a result of the global economic slowdown and crisis. Many large property projects including development of new cities in Middle East have been shelved. Profile of main players PT Supreme Cable Manufacturing & Commerce (PT Sucaco) This company was established in 1970 with the name of PT Supreme Cable Manufacturing Corporation. In 1996, Sucaco became a public company selling part of its share at the Jakarta Stock Exchange . In 1997 , it was renamed PT Supreme Cable manufacturing & Commerce (Sucaco). Sucaco is the pioneer in modern cable industry in Indonesia. PT Supreme Cable Manufacturing & Commerce Tbk reported sales valued at Rp2.3 trillion in 2007 or an increase of 53.85% from Rp1.5 trillion in the previous year. The sales in 2007 included exports valued at Rp537.6 billion or an increase of 413.45% from Rp104.7 billion in 2006 . Most of the exports were to Middle East. The company, however, reported only a slight increase of 4.97% in profit to Rp54.2 billion in 2007 reflecting a sharp competition in the market. In 2008, PT Supreme Cable Manufacturing & Commerce Tbk posted only Rp11.23 billion in profit , down 79.3% form the previous year. Its sales fell 6.8% to Rp2,127.03 billion from Rp2,281.70 billion . Sumi Indo Kabel PT Sumi Indo Kabel Tbk was established on 23 July 1981, with the name of PT Industri Kawat Indonesia. The company was renamed PT IKI Indah Kabel Indonesia in 1982.
15
Industry Profile
In 2006, PT Sumi Indo Kabel Tbk. recorded the largest sales among publicly listed cable makers. However, in 2007, its sales fell when other companies recorded an increase. Its sales in 2007 fell 16.93% to Rp1,590 billion from Rp1,914 billion after it stopped in 2006 selling copper wires and copper rod produced by its subsidiary PT Karya Sumiden Indonesia. The company did not sell the two types of cable as the profit margin was too low. The copper cable produced by PT Karya Sumiden is then used to feed only cable factory of PT Sumi Indo Kabel. As a result, PT Sumi Indo Kabel reported an increase in operating profit despite a decline in income as it sales and operating costs declined also decline . A significant decline was also recorded in non operating cost from Rp19.076 billion to Rp4.573 billion resulting in a sharp increase of 74.58% in net profit to Rp77.467 billion . PT Voksel Electric Tbk The company is a producer and distributor of electric cables. PT Voksel Electric Tbk showed in its financial report for 2007, a 48% increase in sales to Rp 1,358.64 billion from Rp 919.53 billion in 2006 with net profit surging 51 % to Rp 53.7 billion from Rp35.59 billion. In 2008, PT Voksel Electric Tbk recorded an estimated 46.3% increase in sales to Rp1.856 trillion . In the first half of that year it posted Rp 1,019.76 billion in sales. Company sources said PT Voksel Electric had a 30% share of supply of electric cables for the 10,000 MW crash program. In 2008, PT Voksel held a number of contracts to supply electric cable to a number of power generating projects. Voksel supplies high voltage cable for the projects. The company has expanded its production capacity from 800 ton per month to 1,300 tons of for aluminum cables, from 130 tons to 180 tons of medium voltage cable and from 100,000 tons to 120,000 tons of fiber optic. PT Jembo Cable Company Tbk Consolidated sales recorded by PT Jembo Cable Company Tbk. rose 64.2% or Rp287.6 billion from Rp448 billion in 2006 to Rp735,6 billion in 2007. The sales exceeded its target of Rp 496 billion. The net profit of the company rose Rp22.3 billion from Rp600 million to Rp 22.9 billion in the same period.
16
Industry Profile
Increase was recorded in the sales of low voltage electric cable with copper conductor which rose from Rp150 billion in 2006 to Rp407 billion in 2007. The sales of medium voltage electric cable rose from Rp91 billion to Rp 121 billion . The sales of metallic telephone cable rose from Rp39 billion to Rp51 billion. Decrease was recorded in the sales of low voltage electric cable with aluminum conductor falling from Rp140 billion in 2006 to Rp124 billion in 2007 and sales of fiber optic cable from Rp 20 billion to Rp 11 billion. Kabelindo Murni In 2007, PT Kabelindo Murni Tbk recorded a high increase in sales up 175% to Rp 499.50 billion from Rp285.40 billion in the previous year. The surge was recorded especially in the demand for electric cables and telephone cables. Sales of electric cable on the domestic market reached Rp460.695 billion in 2007 and sales of telephone cable Rp36.72 billion. Its profit rose 20% to Rp12.60 billion in 2007. Its sales in 2008 were estimated to rise still but not as sharp as in 2007. In the first half of 2008, its sales were valued at Rp 263 billion . KMI Wire and Cable PT GT Kabel Indonesia Tbk, now known with a new name of PT KMI Wire and Cable Tbk (KBLI), was estimated to chalk up an increase in income to Rp1.4 trillion in 2008 as it already secured a potential contract of Rp 961 billion on the domestic and export market. Based on its financial report in 2008, PT KMI Wire and Cable Tbk recorded Rp 26.644 billion in net profit in 2008 or up from 2007. The increase in profit was attributable to a sharp increase in net sales to Rp 1.731 trillion from Rp451.483 billion in 2007. In 2008, the company reported a loss of Rp 17.311 billion on foreign exchange, up from Rp8.912 billion in 2007 The company said it hopes to secure order valued at Rp255 billion for exports and Rp706 billion from local buyers . The potential contracts included from PT PLN (persero) valued at Rp463 billion, from buyers abroad valued at Rp255 billion, distributors Rp181 billion, and from spot market valued at Rp62 billion. KBLI also secured contract to supply cable valued at Rp560.3 billion with delivery on June 30, 2008 including Rp275.1 billion with local buyers and Rp282.2 billion with buyers abroad. The company sells cables mainly to Africa, Middle East and Australia.
17
Industry Profile
In 2009, PT KMI hopes to post Rp48 billion in net profit with income totaling Rp1.5 trillion from the sales of copper electric cable valued at Rp949 billion and aluminum electric cables valued at Rp472 billion. Table - 8 Financial performance of main cable makers, 2006 -2008
Name of company 2006 KMI Wire and Cable Tbk, PT Supreme Cable Tbk, PT Jembo Cable Company Tbk, PT Kabelindo Murni Tbk, PT Voksel Electric Tbk, PT Sumi Indokabel Tbk, PT 1,130,748 1,483,069 448,021 285,472 919,537 1,914,345 6,183,198 Total Income (Rp million) 2007 1,280,446 2,281,701 735,589 499,480 1,358,648 1,590,455 7,748,326 Net Profit 2008* 796,860 1,157807 484,008 263,153 1,019,761 835,237 4,556,826 2006 50,382 51,643 593 7,270 35,597 55,374 202,865 2007 25,635 54,209 22,922 12,585 53,701 77,467 248,526 2008* 30,968 14,399 12,752 2,739 39,544 30,346 130,748
Source : Indonesia Stock Exchange Note :*) per June 2008
Cable exports up The slump on the domestic market in the wake of the monetary crisis of 1997/1998, forced cable makers in the country to seek to boost exports to offset a decline in sales on the domestic market. Exports, therefore, began to rise in 2000 and the trend continued until 2007. In 2004, exports totaled 66,600 tons valued at US$ 287 million, up to 111,600 tons valued at US$ 917 million in 2007 or an increase of 20% a year. Previously exports were made mainly to Japan, the Philippines, Bangladesh and Sri Lanka, but in the last two years, the Middle East has become the main export destinations. The construction industry marked with rising property buildings is brisk following the oil boom in the oil rich region. New cities have been built or being build requiring larger supply of cables mainly electric cable and telephone cables. Currently cable makers are more oriented to export market. PT Sumi Indo Kabel, for example, exports most of its cable production. In the first half of 2008, the company exported 83% of its production leaving only 13% for domestic market. PT KMI Wires and Cables Tbk PT KMI has recorded an increase in its exports although most of its production is still disposed of on the domestic market. In 2007, sales on the domestic market made up 84% of its total sales with exports making up only 16%. In the first half of 2008, its exports rose in contribution to 25%. Its export markets have expanded to South America, Africa and Europe.
18
Industry Profile
PT KMI said demand for cables have increased in Middle East in the past two years especially before the financial crisis in 2008. Large property projects and construction of new cities pushed up demand for cables especially electric cables. In 2007 and 2008, around 70%-75% of exports by PT KMI were to Middle East. Other export regions accounted for the remaining 25%-30% of its exports. Growing exports have boosted production by the company prompting it expand production capacity. It plans to expand its capacity by 25% by phases until 2010. PT SUCACO PT Supreme Cable Manufacturing & Commerce Tbk recorded sales valued at Rp 2.3 trillion. That year its exports were valued at Rp537.6 billion or an increase of 413.45% from Rp104.7 billion in 2006. Middle East is its largest buyer. Other cable makers such as PT Voksel Electric Tbk also increased exports. Voksel exported cables valued at US$3 million to Middle East in 2007. Table 9 Indonesias exports of cables 2004 2007 Year Volume Value Growth Growth (Tons) 000 US$ (%) (%) 2004 66,625 287,701 2005 77,339 16.08 505,872 75.80 2006 87,178 12.72 735,813 45.45 2007 111,619 28.03 917,774 24.72 Source : BPS Indonesia exports various types of cable. The largest in volume is electric cable with voltage of more than 1000V (HS. 8544.60.000) totaling 33,000 tons in 2007 and telecommunications cable (HS 8544.49.39000 totaling 25,200 tons. The largest exports in value were wiring harnesses for motor vehicles (HS 8544.30.1000) valued at US$ 338 million in 2007. Table - 10 Exports of cables by types, 2004 2007
Tons/000US$
HS 8544.11.0010 Description Winding wire of laquered/enamelled copper, 355 2,731 14,719 70,262 2004 2005 2006 2007
8544.11.0020
Winding wire of copper, cover with paper textile material/pvc
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Industry Profile
Table 10 contd
HS Description Winding wire of copper, laquer/enamelled & cover with paper, textile material/pvc Winding wire cross-sect. connectors of copper, rect and without 10 617 70 966 of 233 1,288 96 1,187 57 179 830 1,235 1,269 7,610 4,675 14,372 290 868 1 8 7,384 17,583 600 1,598 9,030 20,654 69 389 1 2 1 1 63 573 10,376 116,701 25 166 5,901 85,131 182 939 961 6,137 12,105 157,107 446 1,973 241 1,792 5,220 92,566 91 626 107 492 1 2 5,040 23,118 27 207 1 3 7,898 19,210 2004 2005 2006 2007
8544.11.0030
165 1,404
8544.11.0040 8544.11.0090
Other winding wire of copper Rectangular copper winding wire
8544.11.110
8544.11.190
Winding wire of copper in other forms Winding wire of copper covered with Textile Winding wire of copper insulated with PVC Winding wire of copper of oth, rectang. Cross-section & without connector Winding wire of copper of oth Rectangular winding wire of other, cover with paper Other winding wire Winding Wire not of copper of laquered/enameled Inding wire not of copper of manganese resistance wire Manganese resistance wire Winding wire of other than copper of other type Co-axial cable connectors fitted with
8544.11.200
8544.11.300
8544.11.4000 8544.11.9000
8544.11.910 8544.11.990
8544.19.1000
8544.19.2000 8544.19.300
8544.19.900
8544.20.100
8544.20.2000
Insult cables cot fitted with conec., fo ra voltage <=66.000 volts
20
Industry Profile
Table 10 contd
HS 8544.20.210 Description Co-axial cable not fitted with Connectors insulated with PVC Other co-axial cable not fitted with Connectors Insul.cables not fitted with connec., fo ra voltage>66.000 volt Insulated cables not fitted with connectors, for a voltage >66.000 volt Wiring harnesses vehicles for motor 10,534 134,831 4,522 52,803 861 3,869 7 516 142 658 1 16 666 1,556 3 148 58 620 14 495 2 54 1 18 233 10,247 158 2,962 55 2,224 182 1,637 1,207 5,133 14,799 200,303 2,406 38,644 20,831 338,094 2,356 32,096 2004 246 1,245 23 123 1 2 21 208 26 88 1 2 2005 2006 2007
8544.20.290
8544.20.3000
8544.20.4000
8544.30.1000 8544.30.9000
Wiring harnesses for aircraft/ship Elect. Conductor for a voltage < 80 V fitted with connector Telephone cables, fitted with conectors submarine
8544.41.000
8544.41.1100
8544.41.1200
Telephone cables, oth than submarine fitted with conectors Oth plastic insulated electric cable having cross sect<=30mm fitt w co Oth elec.conduc o 8544.41.11-15 fitted connectors than with
8544.41.1500
8544.41.1900
8544.41.9100
Plastic insul. Electric cable having cross section<=30mm fitt w co Plastic insulated electric conductors fitted connectors Controlling connectors cables fitted with
8544.41.9300
8544.41.9400
8544.41.9900
oth electris conductor oth than 8544.41.91-95 fitted connectors Telephone, telegraph, radio relay cable submarine, for communication, <=8V
8544.42.1100
21
Industry Profile
Table 10 contd
HS 8544.42.1900 Description Other fitted with connectors for telecommunication, voltage <=8V Fitted with connectors for telecommunication voltage >8V&<=1V Oth fitted with voltage <=1 volts conector, for 1,908 14,794 2,209 17,506 585 9,180 89 264 433 4,861 482 10,178 868 19,385 74 314 147 5,395 823 12,715 235 8,224 2004 2005 2006 2007 401 1,620 12 28
8544.42.2000
8544.42.9000
8544.49.1100
Elect. Conductor for a voltage < 80 V insulated with PVC Telep.teleg & radio relay cables, oth than submarine not fitt with Other cable for electrical conductor for a voltage < 80 V Shielded wire for mnfact. Of autowiring harnesses, not for communication, <=8V Oth fitted with connectors, <=80V, not for used for telecommunications Telephone, telegraph, radio relay cable submarine, for communication, >8V & <=1V Oth fitted with connectors for telecommunication, voltage > 8V and < 1V Other fitted with connectors, > 80V & <= 1V of a kind not used for telecom Other elect. Conductor for voltage < 80 V insulated with PVC Shielded wire of kind used in the mfd of auto wiring harns not fit w Other electric conductor < 80 V insulated with other materials Elect. Conductor of 80 V < Volt < 1000 V with fitted connectors
8544.49.1200
8544.49.1900
8544.49.2100
1,967 16,543 213 4,442
8544.49.2900
8544.49.3100
2 14
8544.49.3900
25,277 158,756 115 4,030 1 37 66 408 81 614 1 2 172 1,043 11,330 34,082 2,966 20,728 2,299 22,786
8544.49.4000
8544.49.910
8544.49.9500
8544.49.990
8544.51.000
22
Industry Profile
Table 10 contd
HS Description Teleph.teleg & radio relay cables, submarine fitted with connec for 80v<volt< Teleph, telegrap & radio relay cables, oth than submarine fit w conn for 80 V < V oth elec conduc oth than 8544.51.11-12 fitt with connec for 80 V < V Plastic insult. Elec. Cable having a cross sec<=300mm fitt w conn for 80V<V=1000V Plastic insul. Elec. Cable having a cross sec > 300 mm fitt w conn for 80 V < V < Controlling cables fitted connectors 80V<Voltage<=1,000V with for 1 1 482 3,718 220 429 156 449 850 22,860 5,700 25,646 2004 2005 2006 2007
8544.51.1100
1,390 4,501
497 2,419
8544.51.1200
174 466 484 2,232 8 62
8544.51.1900
8544.51.9100
3,865 12,587
3,477 14,696
8544.51.9200
5 13
16 63
8544.51.9400
8544.51.9900
Oth elec conduc o than 8544.51.91-94 fitted with connec for 80V<Volt<= Elect. Conductor of 80 V < Volt < 1000 V insulated with PVC Telp. Teleg. & rad relay cab, o. thn submarine not fitted with conn for 80 V<V< Other cable for electric conductor of 80 V < Volt < 1000 V Other electric conductor of 80 V < Volt < 1000 V insulated with PVC Plastic insulated elec. Cable having cross sec > 300 mm & 80V<Voltage<=1000 Controlling cables not fitted with connectors for 80V<Voltage<=1000V Other elect. Conductor 80V < Volt < 1000V
8544.59.110
8544.59.1200
125 385 19,973 54,298 119 277 23,539 87,282
995 6,625 18,237 111,787
8544.59.190
8544.59.910
8544.59.9200
14 55 1 4 1,090 3,510 1,286 3,995 806 3,800
8544.59.9400
8544.59.990
23
Industry Profile
Table 10 contd
HS 8544.60.000 Description Other electric conductors, for a voltage exceeding 1000 V Plastic insulated elec. Cable having cross sec<= 400 mm for 1 KV<Volt<=36 K Plastic insulated elec. Cable having cross sec<400 mm for 1 KV<Volt<=36 K Plastic insulated elec. Cable having cross sec <= 4mm for 36 KV<volt<=66KV Plastic insulated elec. Cable having cross sec>400 mm for Voltage>66 K Other electric conductors, for a voltage >66 KV Plastic insulated elec. Cable having cross sec>400 mm for Voltage>66 K Teleph, Telegraph, Radio relay cables, oth than submarine for voltage>1KV Oth electric conductors oth than 8544.60.91-92 for voltage >1 Kv Optical Fibre Cables Optical Fibre Cables Teleph, telegraph & Radio relay Cables, oth than submarine Optical Fibre Cables Teleph, telegraph & Radio relay Cables submarine Oth Optical Fibre Cables 66,625 287,701 1,269 5,988 2004 7,593 17,017 2005 2006 2007 33,056 130,103
8544.60.1100
5,134 18,689
6,829 34,708
8544.60.1900
8 25
1 13
8544.60.2100
94 114 1 3 773 3,752 135 700 1 1 347 1,810 53 106 1 1
8544.60.2900
8544.60.3000
8544.60.3900
8544.60.9200
8544.60.9900 8544.70.000
8544.70.1000
114 473 265 1,658 149 631 77,339 505,872
59 859 281 2,463 142 1,090 87,178 735,813
22 207
8544.70.2000 8544.70.9000 TOTAL Source : BPS
2471 18,350 111,619 917,774
24
Industry Profile
Imports While exporting, the country also imports cables. Imports have increased in the past four years in line with the growing demand in the country. Imported cables are mainly fiber optics and industrial cables In 2004, imports of cable reached 20,772 tons valued at US$ 83,428,000 up to 50,003 tons valued at US$ 222,186,000. Tabel - 11 Imports of cable, 2004 2007 Year 2004 2005*) 2006 2007 Volume (Tons) 20,772 27,580 35,830 50,003 Value (000 US$) 83,428 132,600 179,575 222,186
Note: *) Revised Source: BPS, Data Consult/ICN
Consumption growing A fast growth has been recorded in the countrys consumption of cables in the past four years peaking in 2007. In 2004, consumption totaled 65,400 tons, up to 227,700 tons in 2007 or a three fold increase from the previous year. The increase in consumption in 2007 came with the launching of the governments crash program in the electricity sector. Under the first crash program state electricity company PLN is to build coal-fired power plants with a total capacity of 10,000 megawatts. Outside the program a number of power plants have been built in Java and other regions to cope with shortage in power supply. In 2008, consumption continued to scale up as indicated by growing production and sales until the first half of that year. In the second half of that year demand began to fall both on the domestic and international markets as a result of the global financial crisis that caused the shelving of many construction projects. In addition, rising prices of copper resulted in higher prices of cables. The condition, however, is expected to improve in the coming years especially in the country as the government continues the crash program in the electricity sector.
25
Industry Profile
Table - 12 Domestic consumption of cables, 2004 - 2007 Production Imports 111,3 20,7 133,5 27,6 178,0 35,8 289,3 50,0 Source: Data Consult/ICN Exports 66,6 77,3 87,1 111,6 Market Size 65,4 83,8 126,7 227,7
Cable prices down 5% A decline in the prices of basic materials like copper and aluminum in international market, brought about a decline in the price of cables by the end of 2008. The price of copper in March 2008 hit the level of US$8,680 per ton, but by the end of that year the price sank to US$ 6,000 per ton. The price of aluminum also dropped from US$ 3,200 per ton to US$ 2,100 per ton. As a result the prices of cable were estimated to fall by 5%-6%. A cable producer said if it already cut its selling price of its cables by 5% since last September as the price of cables in the country depends much on the prices of copper and aluminum.
Prospects of Cable Industry The domestic demand for power is forecast to grow more than 9% annually in the next 10 years. Meanwhile, the government hopes to be able to meet 95% of household power requirement in 2018, up from 60.8% in 2007. Currently PLNs supplying capacity still falls short of the requirement, marked by the frequent crisis in power supply in various areas. The government has launched a crash program to be carried out by PLN in the electricity sector to cope with growing shortage in power supply in Java and other regions. Under the crash program PLN is building coal-fired power plants with a total capacity of 10,000 megawatts to be completed in 2010 - 2011. The projects to be built include 10 units of power generating plants with a total capacity of 6,900 MW in Java and 25 power generating plants with a capacity of 3,100 MW outside Java to start in mid 2006. The program is now in progress starting 2006. Currently completion is about 60%. The project will need large supply of electric cables both for transmission 26
Industry Profile
network and distribution systems. The tender for the procurement of transmission cables for the entire power plants is valued at around Rp6.1 trillion. Procurement of cables for transmission network include Rp1.2 trillion in Java, Rp1.3 trillion for the southern Sumatra system, Rp2.4 trillion for the West Nusa Tenggara (NTB) system, and Rp1.2 trillion for North Sumatra system. There are still tenders for the procurement of cable networks for main electrical relay stations. The crash program is to be followed with a second phase which will include construction of coal-fired power plants to make up 26% of the total additional capacity, hydropower and geothermal power plants to account for 60% and gas fired power plants for 14%. Investment needed for the second phase is around US$ 17.3 billion including US$ 15 billion for power plants and the rest for transmission and distribution systems. Demand for electric cables, therefore, will remain strong in the coming several years though slowdown is expected in 2009 as a result of the global financial crisis. In 2010, the electric cables demand is predicted to grow again not only in the country but also in export market such as in Middle East.
Table - 13 Projected consumption of cables, 2008-2009 Year 2008*) 2009 2010 2011 2012 Note: *) forecast Projected consumption (000 tons) 295 310 356 427 513
With production capacity at around 450,000 tons per year at present, more investment will be needed to build new factories or expand the capacity in the next five years.
27
Industry Profile
Conclusion In the past five years, the countrys electric cables industry has expanded fast and recovered form the 1998 monetary crisis. In 2008, cable production was estimated to reach 85% of the countrys production capacity or 378,000 tons. The increase in production has been boosted by growing demand especially from PLNs project of 10,000 MW coal-fired power generating plants. Consumption of electric cables in 2007 rose to 227,000 tons in 2007 and to 295,000 tons in 2008. Indonesia has also succeeded in expanding market abroad. In the past five years exports surged from 66,000 tons in 2004 to 111,000 tons in 2007. The largest market has been Middle East, but the main buyer of automotive cables is Japan to which exports have also increased from year to year. Until mid 2008, demand for cables on the domestic and international markets continued to increase, but toward the end of that year there was a slowdown. Many large property projects abroad including in Middle East were shelved on funding problem. Demand for electric cables, therefore, declined. However, the market is expected to be normal again in 2010. Construction of property projects in the country and in Middle East is expected to brisk again. Based on the trend in the past four years and taking into account the impact of the global financial crisis, demand fro a cable in 2009 is forecast to rise only slightly from 295,000 tons in 2008 to 310,000 tons. Stronger demand is expected in 2010 and by 2012, domestic consumption of cables is forecast to reach 513,000 tons. Additional capacity of the countrys cable industry will be needed to meet the requirement that year. **dgs**
28
COMPANY PROFILE
PT. SUCACO TBK
Backgrounds This company was established in 1970 with the name of PT Supreme Cable Manufacturing Corporation. In 1996, Sucaco became a public company selling part of its shares on the Jakarta Stock Exchange . In 1997, it started the use of the current name of PT Supreme Cable Manufacturing Commerce (Sucaco). Currently the shareholders of Sucaco include PT. Moda Sukma (formerly PT. Modasakti Raharjo) with a share of 29.67%, PT. Tutulan Sukma (25.78%), The Furukawa Electric Co. Ltd of Japan (11.81%) and the public (32.74%). Sucaco is known as a pioneer in modern cable industry in Indonesia. It was established with technical assistance from its principal Furukawa Electric Co., Ltd. of Tokyo, Japan, and International Executive Corp. of New York, USA. The process of transfer of technology took place in less than five years . In one year it no longer needed Japanese experts employed in its factory. After succeeding in producing low voltage electric cable, Sucaco produced telephone cables and then dynamo cables. Sucaco established cooperation with Nihon Decolux -- and produced melamine. Later together with Sumitomo it produced medium and high voltage cables with new technology not yet known in Indonesia. Selling new types of cables proved not easy. Marketing cables with the XLPE isolation, for example, is not enough by using a piece of laboratory certificate from Sumitomo of Japan or from PLN. Only after winning a tender in Singapore valued at US$200,000 , Sucaco could convince buyers in Indonesian market . Sucaco has a number of subsidiaries operating in industries producing cable basic materials. Sucaco also has subsidiaries selling its products on the domestic market and international markets. The subsidiaries include PT Tembaga Mulia Semanan, PT Supreme Alurodin, PT Setia Pratama Lestari Pelletizing, PT Supreme Decoluxe, PT Supreme Elektro Kontak, and PT Furukawa Supreme Optical Cable. Cable industry becomes a locomotive Sucaco is known as the largest producer of cables in Indonesia producing various types of electric and telecommunication cables. It has an annual capacity to produce 2.4 million sckm of telecommunication cables. and 1,800 tons of enameled wires.
29
Company Profile
The products of Sucaco include various types of low voltage, medium voltage and high voltage cables. Apart from electrical and telephone cables it also produces enameled wires, which consist of Polyvinyl Formal Copper Wire, Polyester-imide Copper Wire, Polyester Copper Wire, Polyurethane Copper Wire, Polyester Nylon Copper Wire, Polyester Amide Imide Copper. Table 1 Types of cable and production capacity of PT SUCACO Types of cable Enameled Wire Copper telephone cable Electric Cable (AL) Electric Cable (CU) Power Cable (CU) SLPE Cable (AL) Fiber Optic Cable Marketing Sucaco has received ISO 9002 in 1994 and ISO 9001 in 1997. The certificates concerns quality and designs of products and services. Sucaco has established cooperation with state electricity company PLN, and state telecommunication company PT Telkom to supply cables for the projects of the state companies. Sucaco now has a 30% share of the cable market in Indonesia. In 2007, Sucaco sold 1,606.9 meters of cables. Sucaco already exported cables to Middle East including Saudi Arabia, and Dubai, Iran and other Asian countries, Australia, and Africa. In 2007 its cable sales were valued at US$42.8 million to Cubai Cable Company Ltd, US$ 23.3 million to Dubai Electricity & Water Authority and US$ 5.3 million to Saudi cable Company. Standardization of Industry The cable products of Sucaco have been accepted both at domestic and foreign markets. Its products meet the Indonesian Industrial standard (SII) and international standards of SLI, SPLN, Stel-K, IEC, VDE, DIN, JIS, ICEA/NEMA and BS. The project of 10,000 megawatt power plants launched by PLN provides a large market of cable producers in the country including Sucaco. Since 2007, cable Prod. capacity (ton/year) 1,800 6,383 4,800 1,800 9,600 7,200 16,250
30
Company Profile
sales of five large producers including Sucaco grew 35% annually average. The growth rate for medium producers grew by 10% - 15%. on the
Sucaco acquired a cable factory of PT Aries Kabel Indonesia (Aries Kabel) in 2007 at a price of Rp 9 billion. Assets acquired by the company included land and buildings , machines , vehicles and the brand of ARIES. The acquisition increased the types of cables produced by Sucaco mainly the small types such as building wire, housing cables and automotive cables. In 2008, Sucaco sold its stake in subsidiary PT Furukawa Supreme Optical Cable at a price of US$550,000 as the asset was not profitable. The asset was sold to The Furukawa Electric Co Ltd and OFS Fitel LLC. Furukawa Electric is a 11.81% shareholder of Sucaco. Late 2008, the Central Jakarta District Court decided in favor of Sucaco against Sudono over ownership of the brand of Supreme . Sucaco has used the brand before Sudono Riady Ko used it in Japanese characters. Sucaco registered the brand in 1971 a the directorate general of the intellectual property rights of the ministry of justice. The brand of Supreme was registered by Sucaco under the No. 181172 for electric cable, telephone cable and dynamo cable. The brand was include din the category of 09 and 17. Sudono made the registration of the brand only in 2006 that it was charged with using the brand of other company in this case Sucaco and hurting the interest of consumers. Subsidiaries PT SUCACO has a number of subsidiaries including PT Setia Pratama Lestari Palletizing Industries (99%), PT Supreme Sukses Makmur (98%), and PT Supreme Decoluxe (70%). In addition, SUCACO has shares in a number of other companies as investment including PT Tembaga Mulia Semanan (33.81%), PT Supreme Elektro Kontak (10%) and PT Furukawa Supreme Optical Cable (10%) PT. Setia Pratama Liang Sheng was established in May 2004 by the subsidiaries of Sucaco PT Supreme Sukses Makmur with a 35% share, and PT Setia Pratama Lestari Pelletizing Industries controlling 35% share with the remaining 30% held by PT Liang Sheng Indonesia. In April 2005 PT Setia Pratama Lestari Pelletizing Industries acquired the entire stake of PT Supreme Sukses Makmur in PT Setia Pratama Liang Sheng increasing its stake to 70% in that subsidiary. In June 2006, PT Setia Pratama Lestari Pelletizing Industries (PT SPLPI) and Dick Suwarno Raharjo acquired the shares of PT Setia Pratama Liang Sheng owned by PT Liang Sheng Indonesia respectively 29% and 1%, that
31
Company Profile
PT Setia Pratama Liang Sheng is now 99% owned by PT SPLPI. PT Setia Pratama Liang Sheng was then renamed PT Setia Pratama Lestari Sukma. PT. Setia Pratama Lestari Pelletizing Industries was established by Sucaco in 1985, with Sucaco owning 99.9% of the shares. This company started operation in 1986 with a factory in Tangerang. This company produced Pellet Cross Linked Polyethylene, Polypropylene and Poly-Vinyl Chloride (PVC) for insulation, filler and cable sheath. . In 1998 the company produced XLPE for cable insulation . In 2007, it started producing PE Black Jacketing based LLDPE and HDPE for telephone cable. This company has an annual production capacity of 1,200 tons. This company supplies the basic material for Sucaco and other cable factories.. This company has received the compounded Quality Management System and secured the ISO 9001 in 1997, ISO 9001:2000 in 2002. PT Supreme Sukses Makmur (formerly PT Supreme Alurodin), based in Jakarta, started commercial activity in 1986 . In the beginning it operated in the industry producing Aluminum Rod Electric Conductor (EC) Grade, Aluminum Rod Alloy and Tal. However, in July 2002, it changed its business line and became a trading company and investment agent and consultant. Sucaco owns 98% of the company. PT Supreme Decoluxe, based in Jakarta and operates in the industry producing Melamine, Resin, and Melamine Sheet. This company started commercial operation in 1997 . It is 70% owned by Sucaco . Financial performance In 2007, Sucaco reported sales valued at Rp2.3 trillion or an increase of 53.85% from the previous year. The sales in 2007 were the largest ever recorded by Sucaco in value. Exports accounted for Rp537.6 billion of the sales in 2007. Exports have been made mainly to Middle East. Despite the high increase in sales its net profit rose only 4.97% to Rp54.2 billion. The competition was tighter that the company cut its profit margin. The soaring prices of crude oil in 2008 resulted in an increase in the prices of basic materials like copper, polyethylene and other basic materials. Demand for cables form domestic project and from Middle East remain strong , but the soaring prices of basic materials mainly copper rod caused a problem. The price of copper road surged to US$8,400 per metric tons in 2008 from US$7,100 in 2007.
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Company Profile
Meanwhile, the net profit of Sucaco in 2008 shrank 79.3% to only Rp11.23 billion. The decline in the performance was marked with falling sales by 6.8% to Rp2.12 billion from Rp2.28 billion. In 2009, Sucaco set sales target at Rp2.5 trillion . Increase is expected mainly in exports . It is still waiting for cable procurement plan valued at Rp1 trillion of PT Perusahaan Listrik Negara (PLN) . Sucaco said if PLN still delays the plan it will seek to boost exports. Demand for cables in Middle East is still strong. The market still is booming in that region. This year Sucaco sets no capital expenditure as it does not need yet capacity expansion. Its electric cable production this year is expected to contribute 80% to its consolidated sales. Meanwhile demand for telecommunications cables and magnet cables is expected t decline this year . This year , Sucaco has secured a credit of Rp340 billion from PT Bank Mandiri Tbk to refinance debts. Table 2 Summary of financial report of Sucaco (Rp million) Dec. 2007 1,066,872 226,805 1,293,677 934,423 3,824 8,300 942,723 350,954 1,293,677
Description Assets Current assets Non current assets Total assets Liabilities Current liabilities Non current liabilities Other liabilities Total liabilities Equity Total liabilities and equity Profit & loss Revenue Net profit Source : Sucaco
Dec. 2008 891,199 235,583 1,126,782 751,464 15,440 3,872 770,776 356,006 1,126,782
2,127,032 11,219
2,281,702 54,209
**R**
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INDUSTRY
CABLE BASIC MATERIAL INDUSTRY Cables mainly made of copper or aluminum, are used to transmit electric current. Copper industries as the upstream sector of cable industry, include copper ore industry, concentrate copper industry, copper cathode industry, copper rod industry and copper wire industry. An aluminum industry which is also an upstream sector of the cable industry includes bauxite industry, alumna industry, aluminum ingot industry, aluminum rod industry and aluminum wire industry. There are many integrated cable industries in the country producing the basic materials and finished products. Table - 1 Production capacity of upstream cable industry and intermediate cable industry 2008 Industry Copper cathode Copper wire rod Copper wire Aluminum ingot Aluminum wire rod Aluminum wire Source: Data Consult Production capacity (tons/year) 270,000 107,640 413,700 264,300 89,200 5,000 Number of players 1 6 23 11 6 1
Copper cathode Copper cathode is a basic copper product used as a basic material of various copper products such as cable, foil, cu tube, and cu pipe. Its basic material is copper anode. Indonesia has only one producer of copper cathode that is PT. Smelting Co. which has a production capacity of 270,000 tons a year. PT. Smelting which was established in February 1996 is a foreign investment (PMA) company with an investment of US$ 891 million. PT. Smelting produces copper cathode, Anode Slimes, Copper Slag, Copper Telluride, and by products of Gypsum, and Sulfuric Acid.
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Industry
The facility owned by PT. Smelting Co include smelting machine to produce copper anode, refinery to produce copper cathode and acid plant to turn out sulfuric acid and Gypsum. The process of producing copper anode with three furnaces uses the technology of Mitsubishi. Anode with a copper grade of 99.4% is processed into copper cathode, which will have a copper grade of 99.99% through electrolysis. The process of Sulfuric Acid is made with the technology of double contact/ absorption from Mitsubishi. The basic material in the form of copper concentrate is supplied by PT. Freeport Indonesia, a US company having large copper mines in Grasberg, Papua and PT. Newmont Nusa Tenggara, which has a copper mine in Batu Hijau, West Nusatenggara. PT. Smelting will export part of its production to a number of countries in Asia. Smelting is 60.5% owned by Mitsubishi Materials Corp, 25% by Freeport Indonesia, 9.5% by Mitsubishi Corp and 5% by Nippon Mining and Metals Co, Ltd. Copper Wire Rod Copper wire rod is used as feedstock for copper wires. generally has a diameter of 8 mm in rolls. Copper wire rod
The country has six producers of copper wire rod. Sluggish growth has been recorded in the development of copper wire rod industry in the country. PT. Tembaga Mulia Semanan, Tbk (TMS) has the largest production capacity of 48,000 tons per year. In addition to copper wire rod, the company produces copper wire bars and a number of other copper based products. The company is 33% owned by PT. Supreme Cable Manufacturing, 35% by The Furukawa Electric, Co. Ltd and 10% by Toyota Tsu Sho . PT. Supreme Cable Manufacturing, Tbk itself is 11.81% owned by Furukawa Electric, Co. Ltd. Furukawa Electric, Co. Ltd operates in industry supporting telecommunication industry producing fiber optic cables, optical connectors and fusion splicers. Furukawa has business units in electronic sector producing electronic components and cable materials, in automotive sector producing automotive cables and electric cables, and conductor materials, in copper and aluminum material industry producing, in construction material industry producing thermal pipes , insulation and fire resistant materials.
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Industry
The second largest producer is PT. IKI Indah Cable Indonesia/ PT. Sumi Indo Kabel, Tbk. which was established in 1981 with the name of PT. Industri Kawat Indonesia. The company started using the name of PT. IKI Indah Kabel in 1982. In 1994, their statuses become a foreign investment (PMA) company with the involvement of Sumitomo Electric of Japan as a new shareholder of 41%. PT. IKI Indah Cable has subsidiary PT. Karya Sumiden Indonesia producing copper wires. PT. Karya Sumiden Indonesia was established in 1998. In 1999, the name of IKI Indah Cable was changed again with PT. Sumi Indo Cable Indonesia after it went public. Sumitomo Electric Industries now controls 88% of the company and Sumitomo owns 5%. The main business of PT. Sumi Indo Cable is production and sales of cables. Its sales of cables were valued at Rp1.54 trillion in 2007 and sales of copper wire rod were worth Rp1.94 billion. Four of the six producers of copper wire rod also produce cables. They are PT. Sumi Indo Cable (SIK), PT. GT Cable Metal Indonesia (GT KMI), PT. Phenolic Prima Indonesia, and PT. Pulung Copper Works. SIK produces electric cables , enameled cables, communication cables and fiber optics cables. PT. GT Cable Metal Indonesia produces electric cables from copper and aluminum and telecommunications cables. PT. Phenolic Prima Indonesia produces electric cables and flexible cable. PT. Pulung Copper Works produces aerial cables, electric cables , and low voltage network cables. The basic material in the form of copper cathode used by copper wire rod producers is partly supplied by PT. Smelting.
Table- 2 Producers of copper wire rod and capacity, 2008 Producers PT. Tembaga Mulia Semanan, Tbk PT. IKI Indah Kabel Indonesia / PT. Sumi Indo Kabel, Tbk PT. GT Kabel Metal Indonesia PT. Phenolic Prima Indonesia Production capacity Location (tons/year) 48,000 Jakarta 33,000 Tangerang 15,000 Jakarta 5,600 Jakarta
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Industry
Table 2 contd Producers PT. Pulung Copper Works PT. Multi Tembaga Utama Total Source : Data Consult Production capacity (tons/year) Location
5,040 Bogor 1,000 Tangerang 107,640
Copper wires The country has two producers of copper wires PT. Karya Sumiden Indonesia (KSI) with a capacity of 410,400 tons a year and PT. Tong Cheng Sandimas (TCS) with a capacity of 3,300 tons per year. The copper wires produced by KSI is partly used to feed the cable factory of its parent company PT. Sumi Indo Kabel. Table - 3 Producers of copper wires and capacity, 2008 Production capacity Producers Location (tons/year) PT. Karya Sumiden Indonesia 410,400 Tangerang PT. Tong Cheng Sandimas 3,300 Tangerang Total 413,700 Source: Data Consult
Aluminum ingot The countrys aluminum ingot industry has not expanded in the past several decades. The largest producer of that material is PT. Indonesia Asahan Aluminum (Inalum) in Asahan, North Sumatra having a production capacity of 240,000 tons a year. The company is 41% owned by the Indonesian government and 59% by a consortium of 12 Japanese companies. It has recorded almost no profit since its came on line in 1983. In 1982-2005, Inalum posted US$ 692 million in operating profit but it suffered foreign exchange loss of US$ 1,645 million as a result of the yen appreciation against the US dollar that the company accumulated a total net loss of US $ 953 million during that period.
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Industry
Shortage in the supply of aluminum ingot in the country is covered with imports as based on an agreement with the Japanese investors, 60% of Inalums production of that material is exported to Japan. The contract with the Japanese consortium will expire in 2013. The consortium wants to extend the contract, but the government has decided to keep it for itself. Imports of aluminum ingot, therefore, is almost the same in volume than annual exports by Inalum of around 96,000 tons. Inalums dependence on imports for alumina basic material make the company less competitive. Other producers have much smaller capacity. The second largest producer is PT. Liang Ying Nuansa Indonesia with a capacity of only 10,000 tons a year. Most of 7 of the ten producers are located in Mojokerto, East Java. The other two are in Surabaya and Cilegon. Indonesia, which has the largest reserve of bauxite, has no processing plant of that basic material and alumina making it difficult to expand the aluminum industry in the country. Table - 4 Producers of aluminum ingot and capacity , 2008 Producers PT. Indonesia Asahan Aluminum PT. Liang Ying Nuansa Indonesia PT. Krakatau Prima Dharma Sentana PT. Pinjaya Logam PT. Rezeki Intilogam Jaya PT. Ingatomas International PT. Master Mas Phosphat Indonesia PT. Naga Agung Mas Indometal PT. Internusa Browns Indonesia PT. Peroni Karya Sentra PT. Mata Mas Metal Indonesia PT. Furin Metal Indonesia Total Source: Data Consult Production capacity (tons/year) 225,000 10,000 4,000 4,000 4,000 3,000 1,000 1,000 550 500 400 200 253,650 Location Asahan Mojokerto Cilegon Mojokerto Tangerang Surabaya Mojokerto Mojokerto Mojokerto Mojokerto Mojokerto Mojokerto
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Industry
Aluminum rod and aluminum wire Producers of cable basic materials from aluminum are more integrated the more they are in the downstream Three of six producers of aluminum wires also produce cables. They are PT. GT Cable Metal Indonesia, PT. Terang Kita, and PT. Jembo Cable Company, Tbk. Indonesia has only one company PT. Tembaga Mulia Semanan, Tbk. producing aluminum wires. This company operates only in the manufacturing of metal materials from aluminum and copper. Producers of wires from aluminum or copper not having integrated with production facility for finished products such as cable are small in capacity, but those having integrated facility to also produce cables has large production capacity such as PT. Karya Sumiden Indonesia, a subsidiary of cable maker PT. Sumi Indo Kabel. The aluminum wire production capacity of PT. Semanan Tembaga Mulia, Tbk is relatively small at 5,000 tons per year. See the following table.
Table - 5 Producers of aluminum wire rod and capacity, Indonesia 2008 Producers PT. Tembaga Mulia Semanan, Tbk PT. Alumina Metal Utama PT. GT Cable Metal Indonesia PT. Terang Kita PT. Jembo Cable Company, Tbk PT. Jayako Murni Alumindo Abadi Total Source: Data Consult Production capacity (tons/year) 22,600 20,000 15,000 12,000 11,000 8,600 89,200 Location Jakarta Tangerang Jakarta Depok Tangerang Jakarta
Conclusion Indonesia has few companies operating in cable basic material industry in the upstream sector producing copper cathode, and aluminum ingot compared with
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Industry
those producing wire rod, the cable basic material in the downstream This is because of the fact that the country has not succeeded in developing industries processing copper ore, bauxite and alumina . So far the country has no copper ore processing industry. The country has only processing plant for copper concentrate to produce copper cathode. Copper cathode industry is developed as part of the agreement to renew the working contract of PT Freeport Indonesia. Meanwhile, aluminum ingot industry also has not expanded as expected. The country has only Inalum that produce aluminum ingot . Inalum was established an in cooperation between the government and a consortium of Japanese companies. The cooperation favors Japan the company is required to exports most or 60% of its production to Japan. Expansion is recorded better in the intermediate sector of industries producing cable basic materials including copper and aluminum wire rod. In the midstream sector, around half of the producers also produce telecommunications and electric cables. The number of producers of copper and aluminum wires (more in the downstream sector) is relatively small than the number of wire rod producers. Most producers are integrated with either downstream or upstream industries such as PT. Tembaga Mulia Semanan, Tbk and PT. Karya Sumiden Indonesia.
* * df * *
40
INDUSTRY
FIBER OPTIC CABLE INDUSTRY
Introduction Fiber optic cable could conduct light effectively in a long distance that it is just suitable to serve as a communication medium. There are two types of fiber optic cable loose tube and tight buffer. Loose tube is a fiber optic cable that has several tubes containing fiber optic normally 4, 6, or 12around the core of fiber glass or metal that functions as toughening agent. The room between the tube and the core is filled with fiber in the form of jelly. This structure is then wrapped with special thread, water resistant tape, aluminum tape, inner packaging from polyethylene, steel tape, and outer packaging from polyethylene. Tight buffer is fiber optic cable made by encircling several pieces of fiber optic round the core and than it is covered with solid material such as polyaramid and then it is wrapped with plastic mainly PVC which is resistant to heat. Cable of this type generally is used in a close place or a room. Development of fiber optic cable industry in Indonesia is not very encouraging despite the fast growth of its consuming industries like telecommunication industry. The reason is large imports of fiber optic cables as a consequence of the use of foreign network vendors , which often bound by contract with foreign producers of fiber optic cable as the suppliers. Producers of fiber optic cable Fiber optic cable industry in Indonesia grows to follow the expansion of telecommunications industry as cables are used for communications networks. Indonesias production capacity of fiber optic cables in 2008 was 27,580 tons per year .There are 8 producers including PT. Supreme Cable Manufacturing Corporation Tbk (Sucaco); PT. Sumi Indah Kabel Indonesia (Sumi Indah); PT. Kabel Metal Indonesia (KMI); PT. Jembo Cable Company Tbk (Jembo), PT. Prysmian Cables Indonesia (Prysmian), PT. BICC Berca Cables (Berca); PT. Communication Cable System Indonesia (CCSI); and PT. Voksel Electric Tbk (Voksel).
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Industry
Table - 1 Indonesias producers of fiber optic cables and capacity, 2008
Status of companies PMDN NON FAS PMA PMA PMA PMA Production capacity (km/y)
Name of companies PT. Supreme Cable Manufacturing Corporation Tbk (SUCACO) PT. Sumi Indo Kabel Indonesia PT. Kabel Metal Indonesia PT. Jembo Cable Company Tbk PT. Prysmian Cables Indonesia PT. Voksel Electric Tbk PT. BICC Berca Cables PT. Communication Cable System Indonesia Total Source: Data Consult
16,250 3,000 2,000 2,000 1,600 1200 950 580 27,580
Profile of main producers of fiber optic PT Sucaco PT. Sucaco was established in 1970 and started operation two years later with technical assistance from Furukawa Electric Co. Ltd. of Japan and International Executive Corp. of the United States. The company, however, started producing fiber optic cables in 1998. Later that year PT. Sucaco started exporting fiber optic cable to Nepal and Sri Lanka. PT. Sucaco has a Indonesia. production capacity of 16,250 tons a year or the largest in
Sucaco supplies fiber optic cables for PT. Telkom, and exports the material to a number of countries including Asia, Australia, Iran, Africa and Middle East. PT. Sucaco is 29.67% owned by PT.Moda Sukma (formerly Modasakti Rahardjo), 25.78% by PT. Tutulan Sukma, and 11.81% by The Furukawa Electric Co. Ltd, 5.32% by PT.Kustodian Sentral Efek Indonesia. PT. Tutulan Sukma is also a 6.25% shareholder of another cable maker PT. Kabelindo Murni. In 2007, Sucaco recorded a net income of Rp38 billion down form Rp52 billion the year before. Sucaco suffered a loss of Rap34 billion in 2004.
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Industry
Voksel Voksel s production capacity for fiber optic cables rose to 1,200 tons per year up from 500 tons after buying new production machines in 2007. In addition to fiber optic cables, Voksel also produces electrical cables, communication cables, and electric bare cables both from copper and aluminum. Most of its production is disposed of on the domestic market in 2007, sales on the domestic market made up 67.83% of its total sales. The rest was exported. Its largest consumer in the country is PT. Telkom for its communication cable. Around 70% of cables for the networks of PT. Telkom are supplied by Voksel. The largest consumer of its electrical cables is state-owned electricity company PLN. Voksel also supplies fiber optic cables to open market through a number of distributors. Its export markets include Brunei, the Philippines, Singapore, Malaysia, Thailand, Cambodia, Vietnam, Sri Lanka, Myanmar, Hong Kong, India, Bangladesh, Japan, Nepal, Korea, UAE, Yemen, Fiji Island, Australia, Egypt, Cyprus, Brazil, Pakistan, etc. PT. Voksel was established in 1971. In 1989, its status became a foreign investment (PMA) company as a joint venture with Howa Electric Wire & Cable Co. Ltd from Japan Voksel is now 21.97% owned by Perfect Prospect Limited, 10.2% by SWCC Showa Cable System Co.Ltd and the rest by investing public. Table - 2 Sales of fiber optic cables by PT. Voksel 2003 2007 Year 2003* 2004** 2005** 2006** 2007*** Sales value (Rp billion) 13.5 14.5 44.2 20.7 78.9 Growth (%) 7.4 204.8 -53.2 281.2
* Not consolidation ** Consolidation with PT. Prima Mitra Elektrindo since 6 July 2004 *** Consolidation with PT. Prima Mitra Elektrindo and PT. Bangun Prima Semesta Source: PT. Voksel
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Industry
In 2007, the net income of Voksel reached Rp44.7 billion or the highest since 2003. In 2003 and 2004, Voksel suffered losses at Rp15 billion and Rp37 billion respectively. It started posting net profit in 2005 - at Rp27 billion in 2005 and Rp 36 billion in 2006. Jembo Cable Jembo Cable was established in 1973 and started producing fiber optic cables in 1993 after establishing technical cooperation with Fujikura, Ltd. Fujikura is a producers of wires and cables including fiber optic cables in addition to fusion splicer. Jembo Cable is a producer of electrical cables, telecommunication cables, control cables, and special cables. Its fiber optic cable production capacity is 2,000 tons per year. Jembo Cable became a public company in 1992 and in 1997 its shares were split into two each. Jembo Cable is 52.57% owned by PT. Monas Permata Persada, 17.58% by PT. Indolife Pensiontana, 13.51% by Fujikura Ltd and 6.49% by Fujikura Asia Limited. In the first nine months of 2007, Jembo Cable reported a net income of Rp16.9 billion or the highest since 2003. In 2005, the company even suffered a loss of Rp2 billion. CCSI CCSI is a producer of fiber optic cables under the license of Corning Cable Systems Inc. (USA). Its has an annual production capacity of 580 tons. CCSI produces all types of loose tube including Buried and Submarine. OPGW, ADSS, Aerial, Direct
CCSI is also a distributor of hardware and accessories for carrier and private network such as Fusion Splicer X60, X77, OTDR, Talk Set, OTB (Optical Termination Box), Pigtail, Patch Cord, HDC, which are produced by Corning Cable Systems. CCSI is owned by Corning Incorporated, which acquired it from the division of communication cable and hardware of Siemens AG in 2000. Corning Incorporated is a producer of special materials from ceramic and glass. Apart from optic cable, and network equipment, Corning Incorporated also
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Industry
produces material display of TFT/ LCD, laboratory equipment and culture cells, medicine development equipment, etc. Sumi Kabel Sumi Kabel has an annual production capacity of 3,000 tons of fiber optic cables or the second largest in the country. The core business of PT. Sumi Indo Kabel is manufacturing of electric and telecommunications cables, but it also produces cable basic material in the form of copper wires. It is 88% owned by Sumitomo Electric Industries and 5% by Sumitomo. Its net income in 2007 totaled Rp54 billion, up from Rp44 billion in the previous year. In 2003 it suffered a loss of Rp 10 billion. Production still low The country fiber optic cable industry operates much below its installed capacity. In 2008, production was only 12,500 km or 50% of its installed capacity. The low capacity utilization was caused by large imports by telecommunication operators that depend much on vendors. Telecommunications operators generally develop networks of fiber optic in cooperation with large network vendors such as NEC, Fujitsu, Alcatel Lucent, etc. which has been bound in contract with producers of fiber optic cables abroad. Table - 3 Indonesias production of fiber optic cables, 2005 - 2008 Year Production (tons ) 5,000 7,300 9,700 12,500 Growth (%) 46.0 32.9 28.9 36
2005 2006 2007 2008 Rata-rata Source: Data Consult
Exports and Imports Exports of fiber optic cables by Indonesia are relatively small compared to production capacity. In 2005, exports totaled only 414 tons valued at US $2.29
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Industry
million. The exports rose in the following year to 482 tons valued at US$ 4.41 million. A sharp increase of 417% in exports was recorded in 2007 to 2,493 tons valued at US$18.56 million. In 2008, exports rose further to 3,100 tons valued at US$ 12.1 million. Table - 4 Indonesias exports of fiber optic cables, 2005 2008 Exports Growth (tons ) (%) 2005 414 2006 482 16.4 2007 2,493 417.2 2008* 3,100 24.3 Note: *) Estimate Source: BPS, Data Consult Year Value (US$ million ) 2.29 4.41 18.56 23.1
Meanwhile, imports in 2007 totaled 1,404 km valued at US$ 9.8 million. The trend of import volume follows development of telecommunication projects in the country. In 2009 to 2010, imports are predicted to grow further as there are a number of telecommunications projects being built or planned. PT. Telkom is building a 3,139 km network called JaKa2LaDeMa to be completed in 2010. In addition, there is the Jakabare project of Indosat 1,300 km in length to be completed this year. Excelcomindo also has project to build 550 km cable network this year. There is also the 4.450 km Palapa Ring project to be carried out by the government. A new player in this business PT. Powertel plans to build a 3,400 km network
Conclusion Indonesias fiber optic cable industry has grown with the support of foreign principals as global players based in Japan, the United States, and Europe. Most of the local producers of fiber optic cables are owned by the foreign principals.
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Industry
Fiber optic cable industry has good prospects as the countrys telecommunications industry is still growing and the telecommunication networks of fiber optic cables are still relatively small not up to 50,000 km as against 70,000 km in India. Telecommunications industry in the country is growing fast that large supply of fiber optic cables will be need in the coming years. The local producers of fiber optic cables, however, could take full advantage of the growing demand on the domestic market as network vendors are generally bound in contract with foreign suppliers. Local producers had only a share of less than 3% of the market of telecommunications and informatics components, which was valued at US$4.1 billion in 2008. The countrys production of fiber optic cables, therefore, remains small. The production in 2008 was less than 50% of the countrys installed capacity. The role of the government, therefore, is needed to protect the domestic industry. This year the industry ministry will propose a draft law on local content in a bid to boost the domestic telecommunications and informatics industry. * * df * *
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ENERGY
SECOND PHASE OF ELECTRICITY CRASH PROGRAM AND DEVELOPMENT OF TRANSMISSION AND DISTRIBUTION NETWORKS
Backgrounds In a bid to prevent shortage in power supply in the country, the government has launched a crash program to build power plants with a total capacity of 10,000 MW. The first phase of the program has been in progress and it is to be followed with the second phase, the second phase is prepared in a Power Provision Plan for 2009-2018 by PLN. The first phase of the program was launched in 2006 to build coal-fired power plants with a total capacity of 10,000 MW, The projects has been more than 50% completed, it is to be completed in 2011. The second phase will follow in 2012 as additional capacity will still be needed, to meet fast growing requirement. In the period of 2009 2018, based on PLNs estimate, power requirement the Java-Bali system will rise from 107.8 TWh in 2009 to 250.9 TWh in 2018 an annual increase of 9.5%. Meanwhile, the requirement outside Java-Bali the same period is estimated to grow from 30.9 TWh in 2009 to 74.3 TWh 2018 or an annual growth of 10.3%. in or in in
The government is set to carry out the program as based on experience in 1998; demand for power supply has continued to increase despite the crisis. The second phase of the program also with a total capacity of around 10,000 MW is estimated to cost US$ 21.3 billion. The private sector is expected to provide 64% of the investment. Most of the plants with a total capacity of 6,000 MW are to be built in Java other regions will have a share of 4,000 MW of the total capacity. In the first phase there are only coal-fired power plants, but in the second phase priority will be given to development of power plants using renewable energy sources such as geothermal and water energy. The power plants are to include PLTU accounting for 26%, PLTGU for 14% and PLTP 42%. However, as renewable energy sources are not yet ready for development, coal fired power plants will still dominate power plants to be built in the second phase. The project will include development of transmission and distribution network. Large supply of electrical cables will be needed.
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Energy
Second Phase of Power Plant Crash Program Until now details of the second phase of the program are still studied by the government and PLN. Whereas, PLN plans to hold tender for the development of power generating plants to be built in the second phase of the program by the end of first half of 2009. The power plants to be built in the second phase of the program will include various types by fuels. Although priority is to be given for renewable energy coal fired power plants (coal PLTU) will still be dominant. Based on the plan forwarded by PLN, the total capacity of power plants to be built in the second phase of the program will reach 11,144 MW including 7,366 MW to be built by PLN and the rest by IPP (Independent Power Producer). Table - 1 Second phase of electricity crash program by owners Types of power Capacity Owners Composition plants (MW) PLN Coal PLTU 5,306 PLTP 665 PLTGU 1,065 PLTA 300 Sub total 7,336 65.8% IPP Coal PLTU 2,338 PLTP 1,470 Sub total 3,808 34.2% Total Indonesia Total 11,144 100% Source : PLN, Data Consult/ICN The power plants to be built in the second phase of the program will be located in 99 areas and 90% of which are in regions outside Java-Bali. Coal PLTU will account for 68% of the capacity or 7,644 MW, PLTP for 19% or 2,135 MW, PLTGU for 10% or 1,065 MW, and PLTA for 3% 300 MW. Table 2 Power plants to be built in second phase of program Type of power Capacity Composition Description plants (MW) (%) Java-Bali system Coal PLTU 5,000 PLTP 1,145 PLTGU 825 Sub total 6,970 100% 49
Energy
Table 2 contd Description Outside Java-Bali Type of power plants Coal PLTU PLTA PLTP PLTGU Coal PLTU PLTA PLTP PLTGU Capacity Composition (MW) (%) 2,644 300 990 240 4,174 100% 7,664 300 2,135 1,065 11,144
Sub total Total Indonesia
Total Source: PLN
100%
Java will have a share of 18 power plants with a combined capacity of 6,970 MW of the power plants with a total capacity of 11,144 MW of power plants to be built in the second phase of the crash program. The regions outside Java Bali will have a much larger number of 65 power plants but will smaller total capacity of 4,174 ME. The 18 power plants include the PLTGU of Muara Tawar with a capacity of 825 MW and three PLTU Cilacap Baru 2,000 MW, Indramayu Baru 1,000 MW, and JavaTengah Infrastruktur 2,000 MW, and 14 units of PLTP. The 65 units of power plants to be built in the outer regions include five units of PLTU in West Kalimantan with a total capacity of 164 MW, four units power plant in South Kalimantan and Central Kalimantan with a total capacity of 348 MW and six units of PLTU in East Kalimantan with a total capacity of 456 MW. In Maluku, there are five units of power plant with a total capacity of 64 MW including one unit of 20-MW PLTP in Tulehu and four units of 12-MW PLTU in Ambon, a 10-MW unit in Masohi , a 12-MW unit in Ternate and a 10-MW unit in Tual. There are four units power plant with a total capacity of 100 MW in NTB, consisting of two units PLTU of 50 MW in Lombok and 10 MW in Sumbawa and 2 units of power plant with a total capacity of 40 MW in NTT. In Sulawesi, there are seven power plants in South Sulawesi and Southeast Sulawesi 520 MW, nine power plants with a capacity of 189 MW in North Sulawesi , Central Sulawesi and Gorontalo.
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Energy
In Southern Sumatra, there are 8 units of power plant with a total capacity of 1,115 MW and northern Sumatra seven units of power plant. The selection of coal PLTUs for the Java-Bali system with a capacity of 1,000 MW each is based on efficiency and to suit the system. The PLTGU project in Java- Bali with a capacity of 825 MW is Muara Tawar AddOn 2, 3, 4. This project is very strategic to meet requirement in 2011-2012, but very much dependent on the availability of gas supply. PLTP projects are to be built mainly by IPP. Table - 3 Locations and capacity power plants to be built in second phase of crash program Locations/types of power plant
Java Bali PLTGU PLTU (4 Projects) PLTP (14 Projects)
Name of project
Muara Tawar Cilacap Baru Indramayu Baru Pemalang, Jawa Tengah Bedugul Cibuni Cisolok-Sukarame Darajat Dieng Tangkuban Perahu Ijen Kamojang Karaha Bodas Patuha Salak Ungaran Wayang Windu Wilis/Ngebel Ketapang Putusibau Sanggau Sintang Parit Baru Muara Teweh New PLTU (Kalsel)
Capacity
825 MW 2.000 MW 1.000 MW 2.000 MW 10 MW 10 MW 30 MW 75 MW 115 MW 110MW 30 MW 60 MW 140 MW 180 MW 40 MW 55 MW 180 MW 110 MW 164 MW 20 MW 10 MW 14 MW 20 MW 100 MW 348 MW 120 MW 200 MW
Outside Java Bali West Kalimantan PLTU (5 projetcs)
South and Central Kalimantan PLTGU PLTU (3 projects)
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Energy
Table 3 contd Locations/types of power plant
Name of project
Pangkalan Bun Sampit
Capacity
14 MW 14 MW 456 MW 20 MW 10 MW 200 MW 12 MW 14 MW 200 MW 64 MW 20 MW 12 MW 10 MW 12 MW 10 MW 100 MW 10 MW 20 MW 50 MW 10 MW 40 MW 10 MW 30 MW. 114 MW 14 MW 22 MW 14 MW 14 MW 30 MW 20 MW
East Kalimantan PLTU
Berau Melak New PLTU (Kaltim) Nunukan Sangata Muara Jawa Tulehu Ambon Masohi Ternate Tual Huu Sembalun Lombok Sumbawa Mataloko Kupang Biak Jayapura Manokwari Timika Sorong Merauke
Maluku PLTP (5 projects)
NTB PLTP (2 projects) PLTU (2 projects) NTT (2 projetcs) PLTP PLTU Papua PLTU (6 projects)
Source: PLN
Project Tenders Until now details of the second phase of the electricity crash program are still studied by the government and PLN. Whereas, PLN plans to hold tender for the development of power generating plants to be built in the second phase of the program by the end of first half of 2009. According to the Planning and Strategy Director of PLN Bambang Praptono, PT PLN (Persero) tender for the projects to be built in the second phase of the crash 52
Energy
program was to start in February and the first to be offered was a PLTU in PLTU Pemalang, Central Java with a capacity of 2,000 MW. The project will be built by independent power producer (IPP). PLN already invited bidders between January 9-16 in 2009 to submit a statement of express of interest in building the PLTU of Pemalang. Around 30 bidders including foreign companies already indicated interest. Among them are Marubeni, Siemens, WTL, Alstom, Areva, Hua Tien, and Da Tang. Construction of the PLTU alone is estimated to cost US$ 1.8 billion. The entire cost of the project is estimated to reach US$2.34 billion. The power plant with a capacity 2,000 MW could consist of three units with a capacity of 660 MW each or two units each with a capacity of 1,000 MW. Tender to be held in June 2009 The schedule has changed or not yet fixed and similarly the number of projects to be financed by PLN and IPP is yet to be set. The first phase of the crash program is carried out by PLN but the second phase will be built by PLN and IPP. PLN is to have 66% of the project by investment and IPP will take the rest. PLN already set aside US$9,924.3 million for capital expenditure including for power plants to be built in Java- Bali valued at US$ 5,022 million. The largest is for PLTU of Cilacap which has a capacity of 2x1000 MW to cost US$ 2,820 million , followed by PLTU of Indramayu Baru US$ 1,410 million and PLTU of Muara Tawar 825 MW to cost US$ 792 million. PLN has set aside US$ 4,902.3 million for 33 units of power generating plants to be built outside Java-Bali. The largest is for the PLTU of Tarahan and PLTU of Sumbagut (northern Sumatra) respectively with a capacity of 2 x 200 MW and to cost US$ 588.8 million. Table - 4 Capital expenditure spending for power plant projects by PLN Capacity Capex Name of power plants Type (MW) (US$ million) JAVA - BALI Muara Tawar PLTGU 1 x 825 792.0 Cilacap Baru PLTU 2 x 1000 2,820.0 Indramayu Baru PLTU 1 x 1000 1,410.0 Total Java Bali 3,825 5,022.0 Outside Java Bali Parit Baru PLTU 2 x 25 159.0 PLTU Kalsel baru PLTU 2 x 100 302.8 PLTU Kaltim baru PLTU 2 x 100 302.8 Muara Jawa PLTU 2 x 100 302.8 Takalar PLTU 2 x 100 454.2
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Energy
Table 4 contd Name of power plants Tarahan PLTU Baru (Sumbagut) Sumbar Pesisir Putussibau Masohi Tual Sumbawa Merauke Kolaka Sorong Biak Manokwari Timika Muara Teweh Lhoksemawe Bakaru II Asahan III Hululais Lumut Balai Ulubelu Sunagi Penuh Lahendong Optimasi Lahendong IV Lahendong V Kotamabagu Merana Bora Lailena Bituang Mataloko Sembalun Huu Tulehu Total Outside Java-Bali Total Indonesia Source : PLN Type PLTU PLTU PLTU PLTU PLTU PLTU PLTU PLTU PLTU PLTU PLTU PLTU PLTU PLTGU PLTGU PLTA PLTA PLTP PLTP PLTP PLTP PLTP PLTP PLTP PLTP PLTP PLTP PLTP PLTP PLTP PLTP PLTP PLTP Capacity (MW) 2 x 100 2 x 200 2 x 200 2x5 2x5 2x5 2 x 10 2 x 10 2 x 10 2 x 15 2x7 2x7 2x7 1 x 120 1 x 120 2 x 63 1 x 174 3 x 55 2 x 55 2 x 55 1 x 55 1 x 25 1 x 20 1 x 20 1 x 20 2 x 10 2x5 2 x 10 2x5 2x5 2 x 10 2x5 2x5 3,307 7,132 Capex (US$ million) 588.8 588.8 302.8
104.8 104.8 252.0 348.0 232.7 232.7 232.7 77.6 35.0 28.0 28.0 56.0 28.0 14.0 28.0 14.0 14.0 28.0 14.0 28.0 4,902.3 9,924.3
54
Energy
Sources at the ministry of energy and mineral resources said the second phase of the crash program will cost around US$ 21.3 billion or around Rp234.3 trillion. The source said PLN was to build power plants with a total capacity of only 3,600 MW with an investment of US$ 7.8 billion or around Rp85.8 trillion. Development of transmission networks Development of new power generating plants in Java and outside Java will need the support in the availability of transmission and distribution networks. PLN, therefore, has prepared its Power Provision General Plan (RUPTL) for 20082018, which constitutes a long term plan for national power provision both by PLN and independent power producer (IPP) until 2018. In the RUPTL, PLN among other things estimates that total investment requirement needed for power installation until 2018 will reach US$83.7 billion. The investment fund will include for power plants valued at US$56.9 billion, transmission networks US$ 14.4 billion, and distribution systems US$12.4 billion. Transmission projects accounted for 45% or US$ 1,955.7 million of the total investment in 2008 . Transmission investment in 2009 is estimated to reach US$ 2,401.5 million in 2009 down to US$ 1,430.9 million in 2010 and to US$ 1,049.7 million in 2011 before rising to US$ 1,408.4 million in 2012. Investment needed for distribution system was around US$ 703 million in 2008, up to US$ 761.6 million in 2009, to US$ 959.9 million in 2010, and to US$ 974.5 million in 2011 and to US$ 1,029 million in 2012. Transmission Development Projects Early 2009, PLN signed 23 contracts for the construction of power transmission networks and main power relay station (GI) for the first crash program for Java-Bali and northern Sumatra valued at Rp2.1 trillion. With the signing, PLN had signed all contracts for transmission projects needed in the crash program. The contracts signed included 18 for the construction of 607 km transmission system valued at Rp1.601 trillion for the power systems in northern Sumatra (North Sumatra, Aceh and Riau) . For the power systems of Java-Bali, there were 5 contracts valued at Rp516,8 billion , including transmission system 154,4 KM long and power relay station with a capacity of 2x60 Mega Volt Ampere (MVA). Earlier on February 8, PLN already signed four transmission contracts valued at Rp127 billion for the power system in Pikitring, Southern Sumatra. The contracts were for the construction of transmission and main relay stations with a capacity of 4x30 MVA. The main power relay stations will be used for expansion of the distribution of power in the southern Sumatra system.
55
Energy
In addition, PLN will build 300-km long transmission network for SumatraMalaysia . The network will cross the sea via Pekanbaru, Riau to Peninsular, Malaysia . It will cost around US$ 300 million. The project will be finance d with a loan from Japan Bank for International Cooperation (JBIC). In the beginning, the project is to be completed in 2009 but there has not been agreement reached in negotiations on power price. The completion target, therefore, will likely be rolled over to 2011. There are three options for the form of the cooperation involving the two neighboring countries -- power "swap" under which Indonesia will sell power to Malaysia and Malaysia to sell power to Indonesia. The transmission system for the project also needs to wait for the completion of development of 275 KV transmissions in the Sumatra interconnection system. The interconnection project needs an investment of Rp5.7 trillion including for 1,200 km transmission network valued at Rp3.5 trillion , 11 new units of main power relay station valued at Rp1.5 trillion and for additional voltage from 150 KV to 275 KV needed by five units of main relay stations in Lubuk Linggau, Lahat, Bangko, Muara Bungo, and Kiliranjao, The fund for the 275 kV interconnection project will include Rp700 billion to be provided by PLN and US$155 million by Japan Bank for International Cooperation (JBIC). The fund from JBIC is to be used for the construction of 300 km transmission systems from Padangsidempuan to Payakumbuh. The cost of the remaining 900 km transmission network project is around Rp2.7 trillion covering LahatGumawang-Seputih Bayak-Sutami, Kiliranjao-Semangkok, and Galang-Binjai. Construction of the 275 interconnection system, will support plan to build 650 km transmission of Sumatra-Java . The interconnection project is to be built in cooperation between PLN and Tenaga Nasional Berhad Malaysia. PLN and Tenaga Nasional will carry out joint studies on the feasibility of the Sumatra-Malaysia transmission project to be carried out by Shaw Power Technology Inc. Early 2008, PLN launched tender for the project of Sumatra-Java transmission system valued at US$ 1.2 billion. In line with the RUPTL target the transmission system is to be operational in 2011 or early 2012. The project is planned as the cost of building the 650 transmission system is cheaper than having to carry coal from Sumatra to fuel power plant in Java. In addition it is not easy to find good locations in Java for new power plants. It is reported that China will finance and build the project. Interest has been shown by China Huadian , which will build the mine mouth PLTU project in Bangko Tengah with a capacity of 4x600 MW. The power plant with such big capacity would be too big for Sumatra alone, therefore, China wants to build the Sumatra-Java transmission project. 56
Energy
The power to be generated by the PLTU of Bangko Tengah is too big for consumption in South Sumatra while Java will need additional supply. The project is to be completed in 2010. The transmission cable of high voltage direct current (HVDC) will carry at least 2,000 MW of power from the power plant in South Sumatra to Java crossing the sea of Sunda strait . Transmitting such big power will require change in the electric current from alternating current (AC) to direct current (DC), that converter will need to be built in Sumatra and inverter in Java. Converter is instrument which changes the AC to DC. Inverter is an instrument to change DC to AC that the power could be distributed to subscribers. The DC system is the first to be use din Indonesia. It is needed for the transmission of large current covering a long distance. The transmission system will have the capacity of 400-500 KV with DC . It will need an investment of US$ 600 million for cables and transmission . The converters and inverter will cost around US$ 1.1 billion to be provided by Chinese financers. Large transmission and distribution systems still needed Construction of new power plants and increase in demand for power supply will required more transmission systems . Transmission systems needed until 2013 will reach 9,813 km circuit (kms) including 1,574 kms in length of 500 kV AC , 4,093 kms of 275 kV , 2,896 kms of 150 kV, and 1,252 kms of 70 kV . Table - 5 Transmission networks needed in Indonesia, 2009-2013 Transmission 500 kV AC 500 kV DC 275 kV 150 kV 70 kV Total Source : PLN 2009 159 5.774 80 2010 127 2.152 6.613 852 Year 2011 4 3.571 230 Total Unit (kms) 1.574 4.093 2.896 1.252 9.813
2012 764 3.666 90
2013 530 1.941 1.272 -
Medium voltage distribution system (JTM) requirement is estimated to reach, 7,217 kms in 2009 and up to 45,226 kms in 2013. The requirement for low voltage distribution system (JTR) is around 9,103 kms in 2009 to rise to 13,911 kms in 2013.
57
Energy
The need for transformers is estimated at 1,338 MVA in 2009 up to 7,261 MVA in 2013. Table 6 Distribution systems needed in Indonesia, 2009 -2013 Description JTM JTR Transformers Source : PLN Unit Kms kms MVA 2009 2010 7,217 9,469 9,103 11,654 1,338 1,740 Year 2011 2012 2013 9,134 9,441 9,965 12,022 13,011 13,911 1,791 1,959 2,173
Fiscal Stimulus in electricity sector In a bid to boost the real sector, especially to cushion the impact of the global financial crisis, the energy and mineral resources ministry received a fiscal stimulus of Rp500 billion for 2009. Most or 85% or Rp425 billion of the fund will be for power projects and Rp75 billion for energy project. The Rp425 billion funds will be used to finance development of transmission system and main power relay station, and the rest for provision of electricity for rural energy. PLN will use the fund for electricity projects in Java, Bali, and Nusa Tenggara including PLTU of Lombok, PLTU of Atambua, and PLTU of Ulumbu. See the following table. Table 7 Allocation of fiscal stimulus in the electricity sector, 2009
Activities Construction of power plants and transmission network (Ikitring Java, Bali and Nusa Tenggara ) Construction of main network and main power relay stations (Ikitring Sulawesi, Maluku and Papua) Rural energy project (Electricity and energy utilization director general) Total Location NTT, NTB West Java and Budget (Rp billion) 230 Workers
4,500
South Sulawesi , North Sulawesi and Gorontalo Spread village in 79
195
2,850
75 500
7,600 14,950
Source : ESDM ****
58
TELECOMMUNICATION
DEVELOPMENT OF OPTIC FIBER NETWORK IN INDONESIA A number of telecommunication operators and multimedia service providers in the country have used fiber optic network like PT. Telekomunikasi Indonesia (Telkom), PT Indosat, PT Excelcomindo, and Indonesia Comnet Plus (Icon+), PT. Supra Primatama Nusantara (Biznet) and PT. Powertel. The networks already cover a number of the countrys main islands such as Java, Sumatra, Bali, Kalimantan, and Sulawesi. Telkom, a state company and the countrys largest telecommunication company, has the longest fiber optic network in Indonesia reaching 13,600 km , followed by Excelcomindos 9,950 km and that of Icon + 6,000 km. Another fiber optic network operated by Telkom is an international network of Thailand-Indonesia-Singapore (TIS) coming into operation in December 2003. The TIS network is 1,200 km long linking Songkhla (Thailand), Batam (Indonesia), and Changi (Singapore) to be connected with high capacity submarine cables of other countries. This network is operated in cooperation between Telkom , Singapore Telecommunications Ltd (SingTel) and Communications Authority of Thailand (CAT). The three operators has invested US$30 million each Table - 1 Fiber optic network providers, length of network and coverage, 2008
Players Telkom PT Excelcomindo Icon + Indosat Supra Primatama Nusantara (Biznet) Powertel Length of network Coverage (km) 13,600 Java-Sumatra, JavaSulawesi - Kalimantan 9,950 Sumatra Java Sulawesi - Kalimantan 6,000 Java Bali 4,000 Java, Sumatra, Kalimantan, Sulawesi 250 Jakarta, Karawang, Tangerang, Bogor, Bandung, Surabaya, 141 Jakarta Cikampek Bandung, Tanah Abang Ged. Cyber - Serpong
Source: Data Consult

59
Telecommunication
PT Telkom continues to expand net networks Telecommunications players have continued to expand their fiber optic networks to increase their capacity. Telkom plans to start construction of a submarine fiber optic network in 2009 to link Java Bali Lombok, several places in Kalimantan, and Sulawesi - Kalimantan. The fiber optic network of Sulawesi-Kalimantan will reach 3,139 kilometers consisting of network of 2,734 KM in Sulawesi and 405 KM in Kalimantan. Ring-1 will cover Makassar, Parepare, Watampone, Bulukumba and Makassar (South Sulawesi). Ring-2 to cover Parepare, Palopo (South Sulawesi) Parigi, Palu (Central Sulawesi), Majene, Mamuju (West Sulawesi), Pinrang, and Parepare (South Sulawesi) and Ring-3 to cover Parigi (Central Sulawesi), Gorontalo, and Manado (North Sulawesi). This project is named 'JaKa2LaDeMa' and will need an investment of US$110 million. It is to be completed in mid 2010. The network will be used as a backbone to promote data and voice traffic, e-commerce, and video. The contractor to build the project is Fujitsu from Japan. In this project, Fujitsu will cooperate with a German partner Norddeutsche Seekabelwerke GmbH (NSW). NSW will provide repeater which will be integrated with repeated cables, while Fujitsu as the main director, will provide terminal, repeaters, branching units system integration, and all services needed by the project. In mid 2008, Indosat also began to build submarine cable communication system (SKKL) to reach 1,300 kilometers linking Java - Kalimantan - Batam Singapore. The project, which will have 4 landing points in each island such as: Tanjung Pakis (Karawang, West Java), Sungai Kakap (Pontianak, West Kalimantan), Tanjung Bemban (Batam) and Changi (Singapore), is named Jakabare. Construction of the Jakabare SKKL which will have a bandwidth capacity of 160 to 640 Gigabit per second (Gbps) is expected to be completed in the first half of 2009. This network will also be used to promote the network capacity of service of the Indonesia Singapore route. The project will be built by Indosat in cooperation with NEC Corporation. Powertel, a new player, plans to continue to expand its fiber optic network to reach 3,400 km, including 2,400 km to link cities in Java connected with railways and 1,000 km to link electric poles.
60
Telecommunication
Powertel also plans to build 2,000 km long fiber optic network between cities connected with railways in Sumatra. Powertel was established in 2004 to operate in closed fixed line service using the technology of Broadband over Powerline (BPL). The players are mainly telecommunication companies which concentrate in development of network of backbone fiber optic between cities or islands to support voice and data traffic of their telecommunication business. However, there are some developing last mile network in the form of Metronet such as Indosat through its subsidiaries Indosat Mega Media (IM2), and Icon+ . Player like Biznet concentrates in development of fiber optic network for last mile in large cities. The strategy used by Biznet is developing Metronet to be connected with business buildings. Currently Biznet has established connections with 263 buildings including 248 buildings in Jakarta, 5 in Surabaya, 1 in Bogor, 3 in Bandung, 4 in Tangerang with its fiber optic. Picture - 1 Map of fiber optic network of Telkom in Sulawesi and Kalimantan
61
Telecommunication
Contractors of fiber optic projects in Indonesia NEC from Japan is a vendor for fiber optic network often used by telecommunication operators in Indonesia. A number of projects like RMJ SKSO Fiber Optic cable of Package III in Kalimantan of Telkom, Dumai Melaka Cable System (DMCS) of Telkom and Telekom Malaysia, and SKKL of Indosat using NEC as the vendor. Meanwhile, Fujitsu won other projects of Telkom such as 2,999 km long Jasuka (Jaea Sumatra Kalimantan). Table - 2 Vendors of fiber optic networks in several network projects in Indonesia
Operator Telkom Projects Installation of Fiber Optic RMJ SKSO cable of Package III Kalimantan 'JaKa2LaDeMa' Jasuka (Java Sumatra Kalimantan) Dumai Melaka Cable System (DMCS) High Performance Back Bone (HPBB) Sumatra Sea cable communications system (SKKL) Jakabare (Java, Kalimantan, Batam, Singapore) Procurement of conductor and fiber optic project 550 Alcatel Lucent Length (km) Network vendor NEC Vendors of fiber optic PT. Jembo Cable Company, Tbk Value (US $ million) Year 2008
3,139 2,999
Fujitsu and NSW
2009 110 52
Telkom Telekom (Malaysia) Telkom Indosat
150 2,000 1,300
NEC Siemens - Pirelly NEC
9,3 65 -
2005
2008 2009
Icon+ Excelcomindo
PT. Voksel
2007 2008 2009 -
31
Source: Data Consult
Development of Palapa Ring Project The Palapa Ring project is a fiber optic network project in eastern Indonesia initiated by the government and to be carried out by a number of major telecommunications companies PT. Telkom, PT. Indosat, PT. Excelcomindo Pratama and PT. Bakrie Telecom.
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Telecommunication
This project was earlier estimated to cost only US$180.4 million . The networks total 4,450 km in length including 3,850 km under the sea and 600 km on land. It will have 15 landing points to go across 21 regencies/cities in eastern Indonesia . This project was to be completed this year, but its implementation has been delayed . The stumbling blocks include the soaring cost from earlier estimate of US$180 million to US$700 million as a result of the surges in the prices of optic cables and equipment. The joint venture investment of US$180 million was to be provided by PT Telkom US$90 million , PT Indosat Tbk US$30 million , PT Excelcomindo Pratama Tbk US$30 million and PT Bakrie Telecom Tbk US$30 million . The investment value was reduced with the falling value of the rupiah that has weakened to the level of 11,000 per US$ . With the rupiah was weakened to that level the joint venture investment fell by US$30 million . The cost was estimated when the rupiah was at 9,000 per US$. The government as the facilitator has decided to use the Universal Service Obligation (USO) fund as a soft loan for the consortium to cover the shortage in fund. The USO fund is raised from a contribution of 1.25% of the gross income of service and telecommunication network operators. Last year USU fund totaled Rp1.6 trillion. The funding is made through a special team called ICT (information communication technology) The team is made up of officials of the office of the state minister for communications and informatics, the National Development Planning Board, and the finance ministry and the office of the coordinating minister for economy. However, until now it is not yet clear how the funding mechanism will work. Meanwhile, vendors that took part in the tender as the contractors of the Palapa Ring project include NEC Corporation, NSW-Fujitsu and Alcatel-Lucent. The winner of the tender is yet to be announced as the prices offered by the bidders are much higher or twice as much as earlier estimate. Meanwhile the vendors already utilized their full capacity at present as there are many fiber optic network projects in the world. Therefore, its is almost impossible for them to complete the project this year as originally scheduled. The delay in the implementation of the project results in delay in the order for equipment needed by the project .
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Telecommunication
Picture - 2 Map of the Palapa Ring project
Source: Data Consult Conclusion and prospects With the fast growing telecommunications industry in Indonesia and abroad, fiber optic network is expected to remain high in demand in the country and in the world in general. Fiber optic networks are vital for telecommunications companies. Telecommunications companies which focus on voice and data services will tend to develop backbone network inter city, inter-island with nation wide coverage. Ones which focuses on closed fixed service tend to develop last mile network in large cities. This network generally provide connections commercial buildings and later expected to also cover houses with the growing demand for data communication service. The global crisis is expected to affect plans of telecommunications companies in Indonesia in building fiber optic networks but when the condition improves they are expected to immediately resume their projects . * * df * *
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FINANCE
PLN TO ISSUE BOND TO FINANCE SECOND PHASE OF PROGRAM TO BUILD 10,000 MW POWER PLANTS
Backgrounds The government has launched a crash program to be carried out by PLN in the electricity sector to cope with growing shortage in power supply in Java and other regions. Under the crash program PLN is building coal-fired power plants with a total capacity of 10,000 megawatts to be completed in 2010 - 2011. The program starting in mid 2006 will include construction of 10 units of power generating plants with a total capacity of 6,900 MW in Java and 25 power generating plants with a capacity of 3,100 MW outside Java. The domestic demand for power is forecast to grow more than 9% annually in the next 10 years. Meanwhile, the government hopes to be able to meet 95% of household power requirement in 2018, up from 60.8% in 2007. A number of state banks and private banks have pledged to provide loans for the projects. Among the banks are Bank Mandiri, BNI, BRI, BCA and Bank Mega. The banks have been known to be involved in financing large infrastructure projects including toll roads and telecommunication projects. A number of foreign banks especially Chinese banks have pledged loans for the power projects such as China Exim Bank, Bank of China and Japan Bank for International Cooperation (JBIC). So far around 60% of the first crash program has been completed. In 2009, construction of a number of power plants with a total capacity of 2,000MW is expected to be completed including PLTU Banten and PLTU Rembang. The project of PLTU Indramayu, valued at around US$ 592 million is financed by Bank of China. Currently the project, which is part of the first crash program has been 71% completed. It is expected to be fully operational in September 2009. Meanwhile similar projects in Suralaya, Paiton, Pacitan, Pelabuhan Ratu, and Meulaboh are also to be financed by Chinese banks. The Suralaya and Paiton projects valued at US$ 615 million are now 64% completed financed by China Exim Bank, which already disbursed US$188 million. The projects in Pacitan, Pelabuhan Ratu, and Meulaboh are still in the process of negotiations all valued at around US$899 million. Meanwhile, China Development Bank has agreed to provide a loan of US$262 million for PLTU Rembang.
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Finance
The government is optimistic that the construction of the power generating under the first crash program will be completed as scheduled although there has been delay in the disbursement of fund over disagreement in interest rate and the case of aircraft involving state airline company Merpati Nusantara Airlines, which failed to fully honor its contract to buy a number of aircraft from Chinas aircraft maker Xian Aircraft Industry. Second Crash Program to cost US$17.3 billion Vice President Jusuf Kalla has instructed PLN to immediately prepare for the launch of the second phase of the crash program building more power plants with a total capacity of 10,000MW. Tenders for the projects will be held in the second quarter of this year for projects to be built by independent power producers (IPP) and in the third quarter of this year for projects to be built by PLN. The second phase of the crash program will include construction of coal-fired power plants to make up 26% of the total additional capacity, hydropower and geothermal power plants to account for 60% and gas fired power plants for 14%. Investment needed for the second phase is around US$ 17.3 billion including US$ 15 billion for power plants and the rest for transmission and distribution systems. The projects to be built by PLN will cost around US$ 3.8 billion and those to be carried out by IPP to cost around US$ 13.5 billion. According to plan, PLN will build power generating plants with a total capacity of 3,600 MW, and IPP to build power generating plants with a total capacity of 6,400 MW. The government hands over the projects to the private sector as PLN has limited financing capacity. The private investors will be selected through tenders. Currently the government is finalizing the preparation for the tender documents. The government is considering providing guarantee for bank loans used for the PLN projects. Table 1 Investment for second phase of 10,000 MW power projects Description PLN IPP Power generating plants to be built 3,600 MW 6,400 MW Investment US$ 3.8 billion US$ 13.5 billion
Total 10,000 MW US$ 17.3 billion Source : Energy and Mineral Resources Ministry
66
Finance
PLNs bonds valued at Rp1.5 trillion PLN needs to raise up to Rp10.7 trillion in 2009 for Rp17.3 trillion second crash program. PLN has issued bonds when the bond market was tight. PLN issued conventional bond and sharia bonds valued at Rp1.5 trillion. The bond fund will be used to finance the construction of power generating plants and transmission systems. Under the second phase of he crash program there will be 99 projects to be built with a total power generating capacity of 10,000MW. Apart from the Rp1.5 trillion bonds, the projects will be financed with state budget fund totaling Rp2.4 trillion, export credits totaling Rp5.50 trillion and syndicated loans amounting to Rp1.33 trillion. The bonds served as alternative to raise funds in 2009. The coupon rate was based on the market rate to follow the trend of the benchmark interest rate of Bank Indonesia. The bonds carry fixed rates ranging from 15.7% to 17.2% with the B series to carry a coupon rate of 15.7%-16.7% and the A series 16.2%17.2%. PT Danareksa Sekuritas, PT Trimegah Securities Tbk. and PT Indo Premier Securities were named the underwriters. The 10th conventional bond of PLN with a nominal value of Rp1,440 billion consists of two series A series for 5 years valued at Rp1,015 billion and B series for 7 years valued at Rp425 billion. The third sharia bond valued at Rp760 billion consists of two series A series for 5 years valued at Rp293 billion and B series for 7 years valued at Rp467 billion. The conventional and sharia bonds are given the idAA- (Double A Minus ; Stable Outlook) rating and idAA- (Double A Minus Syariah; Stable Outlook) rating respectively. The bonds are the first conventional and sharia bonds listed on the Indonesian Stock Exchange in 2009, but they are the 10th and the 3rd respectively for PLN. So far PLN has issued nine conventional bonds, two sharia bonds and two global bonds. Table 2 Conventional bonds and sharia bonds of PLN, 2009
Types Bond X A series B series Total Nominal Rp1,015 billion Rp425 billion Rp1.440 billion Code PPLN10A PPLN10B Coupon rate 16,2% - 17,2% 15,7% - 16,7% Term 5 years 7 years
67
Finance
Table 2 contd
Types Sharia bonds A series B series Source : BEI Nominal Rp293 billion Rp467 billion Code SIKPPLN02A SIKPPLN02B Coupon rate Term 5 years 7 years
Financial performance PLN needs large fund for investment. Its income from its subscribers is not enough to cover its investment. The financial performance of the state company could improve with the growing power consumption of 9% annually in the country in the next 10 years. In the first half of 2008, PLN posted Rp78 trillion in income up from Rp52 trillion in the previous year. The increase in income was attributable to both an increase in sales and subsidy from the government. PLN hopes to be able to meet 95.5% of household power requirement in 2018, up from 60% in 2007. In 2009 it plans to invest in transmission network in the form of project program valued at Rp10.73 trillion including Rp3.7 trillion for power projects of 10,000 MW and Rp7.03 trillion for electric energy evacuation. The Rp10.73 trillion investment is to be covered with the bond fund of Rp1.5 trillion, state budget fund Rp2.4 trillion, export credits Rp5.5 trillion, and syndication Rp1.33 trillion. In the first half of 2008, PLN posted a net loss of Rp1.9 trillion and had a current liabilities of Rp155 trillion. Its earning before tax, interest, and amortization (EBTIDA) in 2008 was valued at Rp17 trillion, up from Rp13.3 trillion in 2007 and from only Rp9 trillion in 2006 and 2005. Its debt to EBTIDA ratio in 2008 dropped to 6.3 times from 15.7 times in 2007. The net loss posted by PLN was caused by cost of fund and foreign exchange loss. Its income in the first half of 2008 reached Rp78 trillion or a 50% increase year-on-year. The financial performance of PLN is propped up with additional electricity subsidy from the government. Financing by state banks PLN has received Rp21 trillion in loans to finance its second crash program. A consortium of three state banks has agreed to provide Rp21 trillion of its total requirement of Rp90 trillion. The deficit will be sought from foreign financers. The Rp21 trillion fund will be enough to cover funding in three years until 2010. Meanwhile, BRI said the Rp21 trillion loan is for three years to be serviced Rp7 trillion every year. 68
Finance
Regional Development Banks (BD) have formed a consortium to provide credits for 16 projects of PLTU valued at Rp5 trillion. The consortium is made up of 22 BPDs and PT Bank Rakyat Indonesia Tbk (BRI). General Chairwoman of the association of BPDs Winny E Hasan said the credits for power generating projects plants are guaranteed by the government, therefore, there is almost no risk. The lead arrangers of the consortium are Bank DKI, Bank Papua, Bank Jatim, Bank Kaltim, and Bank Sulsel. A number of BPDs have also formed a consortium to help finance the second phase of the 10,000 MW crash program with a credit of Rp4.6 trillion The guarantee for the credits to finance the construction of 13 power generating plants has been signed. In this consortium the lead arranger is Bank DKI with colead arrangers Bank Jatim and Bank Papua. PLNs bonds bought by local investors Investors began to show interest in bond market as indicated by the purchases of a number of corporate bonds by local investors early this year. Insurance companies were the largest buyers of rupiah bond issued by PLN. Insurance companies bought Rp961.6 worth of the Rp1.5 trillion bonds issued by PLN. The bonds bought by insurance companies included Rp510 billion in conventional bonds and Rp451.5 billion in sharia bonds. Other buyers of the PLNs bonds included pension fund companies accounting for Rp625,5 billion, banks Rp320 billion, corporation and institutions Rp135 billion, securities companies Rp39.5 billion, and investment managers Rp20 billion; foundations and individual investors Rp94 billion and Rp4.5 billion respectively. Market sources said state run workers insurance company Jamsostek bought 30% of the bonds valued at Rp450 billion. Jamsostek requested a higher interest rate of more than 16%. By the end of October 2008, the funds managed by Jamostek reached Rp57.2 trillion, down from end Rp61.2 trillion by the end of September. The decline was attributable to falling value of share investment. Jamsostek placed most of its investment in bonds valued at Rp29.536 trillion or 51.5%, followed by deposits at Rp18.279 trillion (35%), shares Rp7.696 trillion (13.5%), and mutual fund Rp1.81 trillion (3.1%), and the rest in property and participation. A number of investors have rushed to buy PLNs bonds attracted by high coupon rate. The enthusiastic market response might encourage PLN to issue more bonds this year. **rth**
69
CORPORATE NEWS IN BRIEF

SEMEN TONASA TO START CONSTRUCTION OF NEW FACTORY TO COST US$318 MILLION. PT Semen Tonasa, a subsidiary of state cement maker PT Semen Gresik will start construction this year of the new plant with a capacity of 2.5 million tons of cement annually . The project, its fourth unit, will cost around US$318 million. Semen Tonasa is expected to be able to turn out 5.9 million tons of cement a year when its new production facility comes on line by the end of 2011 PT Semen Tonasa already has three factories in operation in the regency of Pangkep, South Sulawesi. . Last year , the company produced an estimated 3.6 million tons of cement , up from 3.2 million tons in the previous year. Work is already in progress to build the new factory . Meanwhile, PT Semen Padang, another subsidiary of Semen Gresik in West Sumatra also plans construction of its fourth unit called Indarung IV with a capacity of 2.3 million tons a year . Construction of the project, however, may be delayed over problem in environmental issue . BAKRIE SUMATERA REPORTS RP2.9 TRILLION IN INCOME . PT Bakrie Sumatera Plantations Tbk recorded Rp2.9 trillion in income in 2009 from the sales of crude palm oil and rubber. The company plans to set aside US$10 million in capital spending this year only for routine work of asset maintenance. The finance director of the company Harry M. Nadhir said the company recorded improvement in financial performance in 2008 r compared with the previous year thanks mainly yo high prices of its commodities in the forst and second quarter of that year. . In the first three quarter of 2008, the company recorded Rp2.39 trillion in income and Rp451.54 billion in net profit or an increase of 115.3% from the same period in the previous year. Harry , however, predicted a sharp decline in performance this year with the falling prices of its commodities . The subsidiary of the Bakrie Group plans expansion of plantations over 100,000 hectares of lands its has . It hopes to use up to 50,000 hectares of the land to grow oil palm and rubber trees. BUKIT ASAM TO INVEST US$20 MLN IN POWER GENERATING PROJECT. State coal mining company PT Tambang Batubara Bukit Asam will invest US$20 million in its a power generating project in Lampung . The power plant will have a capacity of 16 megawatt . Bukit Asam already has planned to build a 30-MW power plant in Tanjung Enim, South Sumatra. The company builds the power plants to guarantee power supply for its own consumption. The Tanjung Enim plant will cost around US$41.4 million to be built by a consortium of China Overseas and PT Welter Energi Nusantara . The power plant is expected to be operational in 2011. The company more than doubled its net profit to Rp1.7 trillion last year from Rp726.21 billion in the previous year . Eko Budhiwijayanto, the company secretary, said Bukit Asam recorded Rp7.21 trillion in income in 2008 or an increase of 75% from the previous year largely on higher price.. Sales on the domestic market rose 77% in value to Rp4.24 trillion and exports surged 72% to Rp2.97 trillion, Eko said.
70
Corporate News in Brief

KIDECO POSTS 141.47% IN NET PROFIT. The net profit of the countrys third largest coal producer PT Kideco Jaya Agung shot up 141.46% year-on-year to US$229.4 million in 2008 on strong sales performance. The company sold 21.7 million tons of coal. The subsidiary of PT Indika Energy recorded US$1.08 billion in income or an increase of 54.11% in the same period, Rotina Rosabai, the vice president of Indika Energy said. Around 87.1% or US$200 million of the profit will be distributed as dividend and Indika will have a share of 46%, Rotina said Kideco, which has a proven reserve of 416 million tons of coal, plans to produce 30 million tons this year up from 22 million tons last year . Kideco is the largest contributor to the profit of Indika Energy. Last year it accounted for r 68.% of the total net profit Indika Energi. Other shareholders of Kidoco nclude Samtan Co.Ltd ( 49%) and PT Muji Inti Utama (5%) . It has a 30year mining concession until 2023. PHILIPS LIGHTING TO BUILD ENERGY SAVING LAMP FACTORY. PT Philips Lighting Indonesia plans to build a factory to produce energy saving lamps in Surabaya, East Java with an investment of US$10 million. The factory will have a capacity to produce 12 million units of energy saving lamps . The subsidiary of the Dutch company Royal Philips Electronics already have an electric lamp factory in Surabaya producing bulbs . The new factory will produce small size energy saving lamps. Earlier Chairman of the association of electric lamp industry John Manoppo said the countrys consumption of energy saving lamps is predicted to reach 160 million units this year , up from 120 million units last year. The countrys production of energy saving lamp is estimated to reach 20million units in the first quarter of this year , or up 40% from 12 million in the same period last year. The surge in production followed a decline in imports as a result of the restriction imposed by the trade ministry on the imports of certain commodities including energy saving lamps. The countrys production of energy saving lamps will not be enough to meet the domestic consumption but the restriction has helped increase the capacity utilization of the producers, John said. ANTAM-KRAKATAU STEEL TO INVEST $63.5 MLN IN STEEL PROJECT. Two state companies will invest Rp700 billion (US$63.5 million) in an iron ore project in the area of Batulicin in the regency of Tanah Bumbu in South Kalimantan. Mining company PT Aneka Tambang (Antam) and steel maker PT Krakatau Steel have established a joint venture company PT Meratus Jaya Iron & Steekl to run the iron steel processing plant . Krakatau Steel has a 66% stake in the project and Aneka Tambang has the remaining 34%. The plant with a capacity 315,000 tons of sponge iron a year is expected to be operational in 2011, Antam President Alwin Syah Loebis said. Krakatau Engineering, a subsidiary of Krakatau Steel, has been named contractor to build the project, Alwin said. Work is already in progress in the project . He said the regional administration will be involved in the project . Antam will set aside Rp3 trillion in capital appending this year up from Rp2.5 trillion last year .
71
ECONOMIC NEWS IN BRIEF

GOVT OFFERS 8 INFRASTRUCTURE PROJECTS VALUED AT Rp4.4 TRILLION The government will offer 8 infrastructure projects valued at Rp4.4 billion to the private sector under public private partnership (PPP) scheme this year. The projects include toll road, railways, sea transport , drinking water and power generating facilities. The government has been set to make a big stride toward implementation of massive infrastructure projects this year. Earlier the finance ministry announced plan to disburse Rp12.2 trillion (US$1.02 billion) in stimulus . Implementation of the projects would create many badly needed jobs to cushion the impact of the global economic crisis, Chief Economics Minister Sri Mulyani Indrawati said. The Rp12.2 trillion funds is part of Rp73.3 trillion to be provided by the government in economic stimulus this year. The government has also established a financing company PT Sarana Multi Infrastrukture (SMI) which will finance infrastructure projects. SMI, which is expected to start operation in April, will provide financial support for projects especially ones failing to attract investors but considered having good prospects. SMI will start with an initial capital of Rp1 trillion (US$90 million) to be provided by the government INVESTMENT IN TEXTILE INDUSTRY FEARED TO FALL ON SHRINKING ORDERS . Shrinking orders for Indonesian textiles are feared to discourage investment in textile industry . Modernization program in tetxile industry is likely to be delayed as a result. The government has offered subsidized credit to finance textile factory restructuring to imrpove efficiency . The textile and textile product director at the industry ministry Aryanto Sagal said investment under the restructuring program in the industry totaled Rp1.8 trillion , but with the fall in order, investment is feared to shrink by 50%. Earlier, Industry Minister Fahmi Idris predicted that the countrys textile and apparel exports are feared to plunge 25.23% to US$8 billion this year from US$10.7 billion last year on weak demand in major markets. Meanwhile, the Indonesian Textile Association (API) said as the country exports 80% of its textile production, the impact of global economic slowdown is serious on the industry. API, however, will maintain its export target of US$11 billion as the Japanese market is still strong, the association chairman Benny Soetrisno said. The Japan Textile Importers Association said its imports of textiles and apparels from Indonesia were valued at US$135 million last year. TELECOM AND INFORMATICS INDUSTRY ASKED TO HAVE HIGHER LOCAL CONTENT. The industry ministry wants an increase in local content for the countrys the telecommunications and informatics industry saying the industry should use local components worth at least US$1.2 billion or 30% of its total capital spending which reaches US$... this year. An increase is expected in the use of local components with expected decline in exports this year. Exports of telecommunications and informatics products are expected to decline 10% this year as a result of the weak demand in international market. Based on data at the industry ministry, the local content of the countrys telecommunications and 72
Economic News in Brief

informatics products is low accounting for less than 5% of the capital spending by producers. The industry recorded production valued at Rp51.85 trillion last year or an increase of 13.38% from the previous year. The low use of local components makes it difficult for the industry to optimize its capacity. Most producers, therefore, operate below their capacity. INDONESIA TO USE MORE ORGANIC FERTILIZERS FOR FOOD CROPS. The government will set aside Rp7 trillion to increase the countrys capacity to produce organic fertilizers including bio-fertilizers in a bid to reduce the use of chemical fertilizer. Earlier Agriculture Minister Anton Apriyantono said. The government will soon replace 50% of chemical fertilizers with organic fertilizers for food crops Anton said the fund will be used to finance 20,000 units of organic fertilizer projects . He told farmers in Bone wide farmlands have been less fertile as a result of long use of chemical fertilizers Every year larger supply of fertilizers are needed to make up for the loss in fertility caused by chemical fertilizers, he said without giving more details about the plan. He said the plan will also open more jobs in rural areas as production of organic fertilizers will be produced by the farmers themselves. Indonesia still is dependent on imports for most of its chemical fertilizer requirement like KCl, ZA, he was quoted as saying GOVERNMENT MAINTAINS ZERO % EXPORT TAX ON CPO . The government will maintain the export tax of 0% on crude palm oil for April, 2009 based on the average price of that commodity in Rotterdam a month earlier . The price in Rotterdam averaged US$558.38 per ton in March or below the price level of US$700 that requires the slapping of an export tax. The trade ministry has not issued a new export benchmark price on which the export tax will be set. Based on the government regulation No. 55/2008 , a 1.5% export duty will be slapped on CPO if the average price of that commodity reaches US$701 to US$750 per ton and the export tax will be 3% if the price reaches US$751US$800 per tons. Meanwhile, Indonesias exports of crude palm oil (CPO) and derivatives are forecast to rise by up to 7% to 15.5 million tons this year from 14.1 million tons last year. A chairman of the association of palm oil companies (Gapki) Susanto said strong demands are still expected from India, China and Europe to offset a decline in demand from the United States A number of factors including soybean production , the price of crude oil and industrial growth in destination countries will determine palm oil demand in the world market , he said. He said the worlds production of soybean is on the decline resulting in an increase in the price of that commodity. The price of CPO has been picking since early this year to reach US$550 per ton at present, he was quoted as saying by the newspaper Bisnis Indonesia. A decline has also been recorded in the production of CPO by Indonesia and Malaysia, which both dominate CPO production in the world. ***
73
APPENDICES
DIRECTORY OF CABLE COMPANY IN INDONESIA PT. KABELINDO MURNI Tbk.
Alamat : Phone : Fax No.: Web-site Manajemen: Jl. Rawagirang No. 2, Kawasan Industri Pulogadung Jakarta Timur - 13930, Indonesia (62-21) 4609065, 4609550 (62-21) 4609064, 4604271 www.kabelindo.co.id Elly Soepono (Chairman) Tan Robert Tanto (President Director) M CH Abbas (Director)
PT. KMI WIRE AND CABLE Tbk.

Alamat : Phone : Fax No.: Web-site: Jl. Raya Bekasi Km. 23.1 Cakung, Jakarta Timur - 13910, (62-21) 4601733 (62-21) 4601738, 4610588 www.kmi.co.id Herman Nursalim (President Director) Lie Than Hian (Director)
PT. SUCACO Tbk.

Alamat : Phone No.: Fax No.: Website: Management: Jl. Kebon Sirih No. 71 Jakarta Pusat - 10340, (62-21) 3100525, 3101525 (62-21) 31931119, 3146426 www.sucaco.com Erwin Suryo Raharjo (Chairman) Elly Soepono(President Director)
PT. TRANKA KABEL

Alamat: Phone No. : Fax No.: Web-site : Alamat : Phone No.: Fax No.: Website: Management: Jl. Raya Bogor Km. 29 Cimanggis, Depok - 16962, (62-21) 8718888, 8722222 (62-21) 8718666 www.trankakabel.com
PT. SUMI INDO KABEL Tbk.

Jln Gatot Subroto Km. 7.8 Ds. Pasir Jaya, Kec. Jatiuwung, Tangerang - 15135 (62-21) 5922404, 5928066 (62-21) 5922576, 5901469 www.sikabel.com Uray Sjaiful Hamid (Chairman) Kojiro Ishese (President Director)
PT. JEMBO CABLE COMPANY Tbk.

Alamat : Phone No.: Website: Management: Jl. Pajajaran Desa Gandaria, Kec. Jatiuwung, Tangerang - 15137 (62-21) 55650468, 5919442-45 www.jembo.com Santoso (President Director)
74
Appendices
Table contd
PT. VOKSEL ELECTRIC Tbk.
Alamat : Phone No.: Fax No.: Website: Management:
Jl. Narogong Km. 16 Cileungsi, Bogor - 16820 (62-21) 8230525, 8230527 (62-21) 8230526, 8230177, 82491701 www.voksel.co.id Chandra Gunawan (Chairman) Ferry Tjandrawinata (President Director)
PT. FURIN JAYA

Alamat : Phone : Fax No.: Web-site Alamat : Phone : Fax No.: Web-site: E-mail: Alamat : Phone No.: Fax No.: E-mail: Website: Alamat: Phone No. : Fax No.: E-mail: Web-site : Alamat : Phone No.: Fax No.: E-mail: Website:
Jalan Raya Serang Km. 17.5, Desa Telaga Kec. Cikupa Tangerang (62-21) 6616736 - 7 (62-21) 6610439 www.furin.co.id
PT. AUTOCOMP SYSTEMS INDONESIA

Jalan Raya Serang Km. 24, Balaraja, Tangerang - 15610, (62-21) 5951535 (62-21) 5951539 www.pemi.co.id pemi@pemi.co.id, novizar@pemi.co.id
PT. COMMUNICATION CABLE SYSTEMS INDONESIA

Wisma Millenia Jl. MT. Haryono Kav. 16, Jakarta -12810 (62-21) 8310212, 8310216, 8310302 (62-21) 8310217 ccsindonesia@centrin.net.id, juliansk@indosat.net.id, ferry_itb2004@yahoo.com www.corning.com
PT. PRYSMIAN CABLES INDONESIA

Gedung BRI II, Room 1502 Jl. Jend. Sudirman 44-46, Jakarta - 10210, (62-21) 5713313, 5742301 (62-21) 2512715 berian.maesa@prysmian.com, djonny.wongkar@prysmian.com www.prysmian.com
PT. INDOWIRE PRIMA INDUSTRINDO

Jl. Margomulyo Indah C-1 Buntaran Tandes, Surabaya - 60184 (62-31) 7491694, 7491695 (62-31) 7491696 indowire@sby.rad.net.id www.indoprimagroup.com
* * *
75
Appendices
1. ECONOMIC INDICATORS
Indonesias inflation by Group of Commodities, 2005 2009*) (2002=100)

Year/ Month Food Stuff 13.91 12.94 11.26 16.35 0.76 0,95 Prepared Food, Beverage Cigarette &Tobacco 13.71 6.36 6.41 12.53 0.95 0,91 Housing, Water, Electricity Gas and Fuel 13.94 4.83 4.88 10.92 -0.06 0,28 Clothing Medical Care 6.13 5.87 4.31 7.96 0.37 0,17 Education, Recreation & Sports 8.24 8.13 8.83 6.66 0.12 0,04 Transport, Comm. & Financial Services 44.75 1.02 1.25 7.49 -2.53 -2,43 Gene ral
2005 2006 2007 2008 2009 Jan. Feb. March April May June July August Sept. Oct. Nov. Dec.
6.92 6.84 8.42 7.33 0.55 2,85
17.11 6.60 6.59 11.06 -0.07 0.21
Source: BPS (Central Bureau of Statistic)
Monthly Indonesia's Consumers Price Indices and Inflations, 2006-2008, April (2002 = 100)
Months January February March April May June July August Sept. Oct. Nov. Dec. Inflation rate 2006 Inflations 1.36 0.58 0.03 0.05 0.37 0.45 0.45 0.33 0.38 0.86 0.34 1.21 6.60 2007 Inflations 1.04 0.62 0.24 -0.16 0.10 0.23 0.72 0.75 0.80 0.79 0.18 1.10 6.59 2008 Inflations 1.77 0.65 0.95 0.57 1.41 2.46 1.37 0.51
0,97 0,45
2009 Inflations -0.07 0.21
0.12 -0.04
11.06
76
Appendices
2. EXPORT AND IMPORT
Indonesia's Export Development, 2006 2009
FOB value (US$ million) Descriptions Total Exports Oil & Gas Crude Oil Oil Products Gas Non Oil and Gas Agriculture Manufacturing Mining & others 2006 100,799 21,209 8,168 2,843 10,197 79,589 3,365 65,024 11,200.4 2007 114,023 22,081 9,226 2,871 9,983 91,942 3,937 75,925 12,075 Jan-Des 2008 136,761 28,958 12,418 3,379 13,160 107,803 4,937 88,044 14,821 Jan 2009 7,153 947 373 71 502 6,206 292 4,907 1,007 % Growth Jan 2009 over 2008 -36.08 -57.79 -55.15 -93.65 74.95 -30.64 -8.24 -35.52 -1.24
Indonesia's Import Development, 2006 2009

CIF value (US$ million)
Descriptions 2006 2007 Des 2008*) Jan 2009*) % Growth Jan. 2009 over Jan. 2008
Total Import Oil & Gas Crude Oil Oil Products Gas Non Oil and Gas Consumption Goods Raw Materials/ Auxiliary Goods Capital Goods
61,065.5 18,962.9 7,852.6 11,080.3 30.0 42,102.6 4,738.2 47,171.4 9,155.9
74,402.7 21,879.6 9,056.7 12,733.7 89.2 52,523.1 6,624.1 56,527.3 11,251.3
7,699.9 983.3 458.4 498.8 26.1 6,716.6 499.1 5,007.5 2,193.3
6,342.6 1,043.4 257.4 737.0 49.0 5,299.2 477.9 4,535.8 1,328.9
-33.99 -45.61 -69.35 -31.66 48,900.00 -31,09 -26.30 -38.33 -17.21
* * *
77
Appendices
3. GROSS DOMESTIC PRODUCT The Value of Gross Domestic Product By Industrial Origin At Current Price and At Constant Price 2000
(Trillion Rupiahs)
Industrial origin Agriculture, Livestock, Forestry and Fishery Mining and Quarrying Manufacturing Industry Electricity, Gas and Water Supply Construction Trade, Hotel, and Restaurant Transport and Communication Financial, Ownership & Business Services Services GDP GDP without oil and gas
At Constant Price 2000 2005 2006 2007 2008 254.4 262.4 271.6 284.3 162.6 491.7 11.6 103.4 294.4 109.4 162.0 160.0 1,749.5 1,604.2 168.0 514.1 12.3 112.2 312.5 125.0 170.1 170.7 1,847.3 1,703.6 171.4 538.1 13.5 121.9 338.9 142.9 183.7 182.0 1,964.0 1,821.4 172.3 557.8 15.0 130.8 363.3 166.1 198.8 193.7 2,082.1 1,939,3
The Growth of GDP by Type of Expenditure Type of Expenditure

Private Consumption Expenditure Government Consumption Expend. Gross Domestic Fixed Capt. Formation Export of goods and services Import of goods & services GDP
2005 3.9 8.1 9.9 8.6 12.3 5.6
(Percentage) 2006 2007 Qtr IV 2008 over Qtr IV 2007 3.2 5.0 5.3 9.6 2.9 9.2 7.6 5.5 3.9 9.2 8.0 8.9 6.3 10.4 11.7 9.5 10.0 6.1
*) January September 2007
* * *
78
Appendices
4. OIL PRICE AND FOREIGN EXCHANGE
OIL PRICES
ITEM CRUDE OIL PRICE (US$/Barrel) - Sumatran Light 1) - Arabian Light 2) - Arabian Heavy 2) - Brent 2) - W. Texas 2) REFINED PRODUCT (US$/Gallon) - Fuel Oil 2) New York 3/31/2009 .4570 .4972 - Gasoline, New York 3/31/2009 .4241 .4446 Premium 3) Sources: 1) FEER - Telerate, 2) AWSJ- Dow Jones International Petroleum Report, 3) AWSJ - Oil Buyer Guide .4965 .4237 .5642 .4440 Market Latest Date Price 1 month ago 3 months Ago One year Ago
Tokyo Europe Europe Europe -
3/31/2009 3/31/2009 3/31/2009 3/31/2009 3/31/2009
41.89 38.53 35.85 37.94 43.06
57.61 62.78 59.97 64.38 69.87
71.41 123.42 127.88 121.27 114.59
53.22 56.46 59.10 66.27 67.35
FOREIGN EXCHANGE AND GOLD PRICE IN JAKARTA

ITEM -FOREIGN EXCHANGE (RUPIAH) US$ Buying Selling Pound. Aust. $ Sin. $ Mal. $ Hk. $ Yen Euro Today 03-31-2009 11,075 12,075 15,841 17,276 7,604 8,294 7,284 7,950 3,238 3,275 1,428 1,558 112.83 123.03 14,662 15,992 1 month ago 11,915 12,035 16,991 17,167 7,408 8,055 7,448 8,104 3,238 3,275 1,538 1,552 121.78 123.06 15,170 15,328 3 months ago 9,111 9,203 16,792 16,964 7,867 7,951 6,429 6,499 2,706 2,736 1,166 1,178 82.67 83.55 13,422 13,561 273,000 One year Ago 8,895 9,895 16,449 18,357 6,608 7,352 5,598 6,231 2,425 2,700 1,146 1,274 78.24 87.06 11,368 12,648 186,500
GOLD PRICE (RP/GRAM) - Gold 24 carat 353,000 353,000 AVERAGE INTEREST RATE - JIBOR a. Over night (O/N) 8.7 8.7 b. 1 month 9.2 9.2 - BI Rate 1 month 8.25 8.25 - SBI (Primary market) 1 month 10.25 10.25 Notes : SBI = Bank Indonesia Certificates, SBPU = Money Market Securities JIBOR = (Jakarta Interbank Offered Rate) n.a. = Data not available Source: Bank Indonesia/Data Consult * * *
5.2 12.4 9.00 8.73
3.0 13.7 8.00 11.00
79
Appendices
5. THE INDONESIAN ECONOMIC TRENDS
Items 1. The growth rate of GDP (% p.a.) - GDP per capita (US$) - GNP per capita (US$) 2. Total export (US$ bill) Total increase (%) Non-oil/gas(US$ billion) Non-oil Increase (%) 3. Total import (US$ bill) Total increase (%) Non-oil/gas(US$ billion) Non-oil increase (%) 4. Current account (US$ bill) 5. Reserve assets (US$ bill) (End of the year) 6. Total money supply (Rp trill.) Increase in 12 months (%) 7. Bank credit (Rp trill.) Increase in 12 months(%) 8. Comm. bank deposit (Rp trill.) Increase in 12 months(%) 9. Average interest rate (% p.a.) a. 3 month time deposit in Rupiah -State bank -Private bank b. Short-term credit -State bank -Private bank 10. Inflation rate, % p.a -Inflation Jan. April 2008 2004r) 5.1 1,207 1,165 71.6 9.3 55.9 17.9 46.2 39.5 34.5 35.7 5.9 36.3 2005r) 5.6 1,320 1,256 85.6 19.5 66.4 18.5 57.5 23.6 43.4 15.4 8.0 34.7 2006r) 5.5 1,663 1,591 100.7 17.5 79.5 19.6 61.07 5.8 42.1 4.62 9.6 42.5 2007r) 6.3 1,946 1,700 113.9*) 13,0 91.9 15.5 74.4*) 21.8 52.5 24.7 11.0 55.9 2008p) 6.3 2,100 1,850 128.0*) 11.0 102.4 10.2 95.3 21.9 75.3 30.2 10.1 *) 58.9 *)
253.8 11.8 553.5 26.4 965.0 6.7
281.9 12.9 689.6 20.2 1,134.0 7.0
361.0 9.4 787.1 11.7 1,298.7 6.6
424.4 6.0 953.2 13.2 1,413.7 6.6
420.3 *) 6.0 980.2*) 14.4 1,493.5 6.6
6.26 6.61 14.6 15.9 6.40
8.17 8.18 15.2 16.0 17.11
9.60 9.88 15.2 17.2 6.6
7.18 7.67 14.3 15.1 6.59
7.28 7.67 14.3 15.1 6.8 4.01 226.2
11. Population (million peoples) 214.4 216.6 219.3 Notes : r) Revised figures *) January March 2008 e) Estimate by Data Consult p) Projection revision figures n.a. = data not available Source: Bank Indonesia, Central Bureau of Statistic and Data Consult
222.1
* * *
80
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ISSN 0853-2086

INDONESIAN COMMERCIAL NEWSLETTER

MARKET INTELLIGENCE REPORT ON CABLE INDUSTRY IN INDONESIA

March 2009 - Indonesian Commercial Newsletter

Directory of Banking companies in Indonesia .............................................................. 74

The Indonesian Economic Trends ............................................................................... 80 * * *

Indonesian Commercial Newsletter - March 2009

Table - 1 Financial performance of coal companies (Rp billion)

Indonesian Commercial Newsletter March 2009

Table - 4 Financial performance of 40 LQ45 companies . (Rp million)

210,032 191,208 2,660,742 1,493,037

Indonesian Commercial Newsletter March 2009

Indonesian Commercial Newsletter March 2009

Indonesian Commercial Newsletter March 2009

Indonesian Commercial Newsletter - March 2009

Indonesian Commercial Newsletter March 2009

Indonesian Commercial Newsletter March 2009

Indonesian Commercial Newsletter March 2009

Electric Cable Type

High Voltage N2XK2Y/NA2XK2Y 150 KV

Cable type R-V (Pe)V

Indonesian Commercial Newsletter March 2009

SNI 04-3234-1992 SNI 04-3235-1992

Min. decision 74/M/SK/2/1988

Indonesian Commercial Newsletter March 2009

Table - 6 Indonesias main cable makers

Indonesian Commercial Newsletter March 2009

Indonesian Commercial Newsletter March 2009

Indonesian Commercial Newsletter March 2009

Indonesian Commercial Newsletter March 2009

Indonesian Commercial Newsletter March 2009

Source : Indonesia Stock Exchange Note :*) per June 2008

Indonesian Commercial Newsletter March 2009

Winding wire of copper, cover with paper textile material/pvc

Indonesian Commercial Newsletter March 2009

Other winding wire of copper Rectangular copper winding wire

Insult cables cot fitted with conec., fo ra voltage <=66.000 volts

Indonesian Commercial Newsletter March 2009

Indonesian Commercial Newsletter March 2009

1,967 16,543 213 4,442

Indonesian Commercial Newsletter March 2009

174 466 484 2,232 8 62

125 385 19,973 54,298 119 277 23,539 87,282

995 6,625 18,237 111,787

14 55 1 4 1,090 3,510 1,286 3,995 806 3,800

Indonesian Commercial Newsletter March 2009

94 114 1 3 773 3,752 135 700 1 1 347 1,810 53 106 1 1

114 473 265 1,658 149 631 77,339 505,872

59 859 281 2,463 142 1,090 87,178 735,813

8544.70.2000 8544.70.9000 TOTAL Source : BPS

2471 18,350 111,619 917,774

Indonesian Commercial Newsletter March 2009

Note: *) Revised Source: BPS, Data Consult/ICN

Indonesian Commercial Newsletter March 2009

Indonesian Commercial Newsletter March 2009

Indonesian Commercial Newsletter March 2009

Indonesian Commercial Newsletter March 2009

Indonesian Commercial Newsletter March 2009

Indonesian Commercial Newsletter March 2009

Indonesian Commercial Newsletter March 2009

Indonesian Commercial Newsletter March 2009

Indonesian Commercial Newsletter March 2009

Indonesian Commercial Newsletter March 2009