Indonesian Cement Net Profit Up 22.9 percent

PT Semen Indonesia (Persero) Tbk posted a first half net profit of Rp 2.58 trillion or Rp 436 per share, an increase of 22.9% from the same period in 2012. The revenue stood at Rp 11.4 trillion, an increase of 31.9 percent over the same period last year which stood at Rp 8, 6 trillion.

The increase in revenues was supported by the total sales volume increased by 18.3 percent to 12.23 million tons in the first half of 2013. Domestic turnover amounted to 12.14 million tons (up 18.0 percent) and export sales of 0.09 million tonnes (up 170 percent). While the national cement sales volumes (industry) grew 7.5 percent to 27.83 million tons compared to the previous period, which stood at 25.89 million tonnes.

“The increase in sales is outpacing the growth of the Indonesian Cement industry plant operations supported by Tonasa Tuban IV and V and the solid synergies, especially in the field of marketing and distribution in Indonesia Cement Group, so we were able domestic market share increased to 43.6 percent from last year’s 40 , 9 percent, “said President Director of Semen Indonesia, Dwi Soetjipto in a written statement received by Tempo, July 29, 2013.

Of the domestic market, the composition of the Indonesian Cement revenues derived from customers in Java and outside Java almost equal. In the first half of 2013, the Java market accounted for revenue of Rp 5.72 trillion (52.43 percent of total domestic sales), while consumers outside of Java contribute to the revenue of Rp 5.19 trillion or 47.57 percent of the total domestic sales .

In addition to maintaining dominance in the domestic market, Indonesian Cement continues to boost sales to foreign markets, especially countries in Southeast Asia. From January to June this year, Indonesian Cement has achieved record revenues in foreign markets amounted to Rp 511.64 billion. This number jumped 170 percent compared to overseas sales in the first half of last year which was only Rp 30.34 billion.

US factory output increases modestly in June to help boost industrial production 0.3 pct.

U.S. factories cranked out more business equipment, home electronics and autos last month, boosting manufacturing output for the second straight month.

The Federal Reserve said Tuesday that manufacturing production rose 0.3 per cent in June from May. That followed a 0.2 per cent gain the previous month. Still, the two consecutive gains barely offset production declines in March and April.

Overall industrial production, which includes factories, mines and utilities, also rose 0.3 per cent in June. Mining output increased 0.8 per cent, while utility output slid 0.1 per cent.

Manufacturing is the most critical component of industrial production. The recent gains are a hopeful sign that factories could rebound in the second half of the year.

The “report confirms the picture of a moderate recovery in the manufacturing sector,” Annalisa Piazza, senior economist at Newedge Strategy, wrote in a research note.

Manufacturers have struggled this year, providing little support to the economy. Their output is up just 1.8 per cent over the past 12 months. And factories have cut jobs in each of the past four months, shedding a total of 24,000 since February.

A key reason for the weakness is slower global growth has cut demand for U.S. exports. Europe is still in a recession and China’s economy grew from April through June at the slowest pace in more than two decades.

Manufacturing has shown improvement in Britain, France and Italy. Large Japanese manufacturers are also sounding optimistic for the first time in nearly two years.

There have been other positive signs that suggest U.S. factory production could increase in the second half of the year.

The Institute for Supply Management said that factory activity improved in June after hitting its lowest level in four years. But the closely watched manufacturing survey reported that employment fell to its lowest level since September 2009.

Factory activity in the New York region grew for the second straight month in July, according to the Federal Reserve Bank of New York’s Empire State manufacturing survey.

U.S. businesses reported a strong 1.1 per cent increase in sales in May, the Commerce Department reported. Those same firms only increased their stockpiles slightly, suggesting they will need to order more goods to keep up with demand.

And Americans bought more cars and trucks, furniture and clothes in June, according to a separate Commerce report on retail spending. But consumers cut back almost everywhere else, and overall retail sales rose just 0.4 per cent last month from May.

Suzuki Production ‘Wagon R’ In Indonesia

Suzuki confirmed that it will produce fuel efficient car in Indonesia. The car will take the base of the Wagon R with a capacity of 660 cc.

Similarly, Suzuki spokesman Ei Mochizuki told Reuters.

Suzuki’s strategy to participate in the program Low Cost and Green Car (LCGC) or a cheap and environmentally friendly cars.

One of the biggest Japanese manufacturers saw LCGC is an opportunity for them to export technology microcar.

To build a ‘Wagon R’ Suzuki to invest 60 billion yen. One of them is by building a new plant that is believed to be in the Cikarang area. Previously seen Suzuki Wagon R car test center of the latest models in the streets of Jakarta.

Suzuki’s second plant located in Greenland International Industrial Center (GIIC), Cikarang, West Java will be 5 times bigger than the Suzuki factory in Tambun.

Previously Managing Director of Sales Indomobil Suzuki Seiji Itayama said this factory occupies an area of ​​120 hectares.

BSD Bag Sales of Rp 4, 19 Trillion

PT Bumi Serpong Damai Tbk (BSDE) recorded pre-sales of Rp 4, 19 trillion in the first semester of 2013. The achievement equivalent to a growth of 79 percent compared with the same period in 2012 amounted to Rp2, 35 trillion.

“In the first semester of 2013 BSDE has gained 60 percent or Rp 4, 19 trillion marketing sales target of 2013, the Company determined that 7 trillion,” said Director and Corporate Secretary of PT Bumi Serpong Damai Tbk, Hermawan Wijaya quoted from a written statement the company on Tuesday (16/07/2013).

Accelerated growth, he added, is sustained partnership strategy and solid demand for the products of particular residential property that we offer both in BSD City as well as in other projects that we manage.

Under the project, BSD City as a flagship project of the members of the group Sinar Mas Land posted the biggest contribution to marketing sales which amounted to 82 percent. While Tourism contributes the second largest city with a seven per cent next Grand Tourism Bekasi contribute five percent and others.

Based on segment income, the biggest contributor of marketing sales the first half of 2013, recorded by the proportion of land sales by 64 per cent to the total sales and marketing accounted for by the second largest contributor with 26 per cent of residential sales. This was driven by the sale of the land to the three strategic partners of the Company through a subsidiary that was formed by the joint venture scheme. The three partners are, among others, Hongkong Land, AEON Mall Japan and Dyandra.

“In 2012, contribution of land sales in the range of 32 percent residential and 58 percent was recorded. Segment of land this year be the growth driver for the Company, it is our strategy to double its growth through value creation on land-bank that we manage,” he explained.

Home Shop segment (Shophouse) during the first half of 2013 contributed nine percent or Rp391, 72 billion compared to gains in the same period in 2012 which is Rp169, 12 billion. This segment grew 43 percent year on year (yoy) and became the third largest contributor to the Company’s marketing sales.

Build Plant Milk, Kalbe Rp 300 Billion Spending

PT Kalbe Farma, drug manufacturers and national health supplements, plans to build a dairy factory in the Cikampek, West Java. According to the Director of Finance and Corporate Secretary of Kalbe Farma, Vidjongtius, the plant cost around Rp 300 billion. “The project started in 2014,” he said at a media gathering.
Vidjongtius said the plant will be owned by the installation of a fourth milk production Kalbe Farma. With the construction of this plant, Kalbe increase milk production capacity of 12 thousand tons to 24 thousand tons per year.
Funds to build the plant will be met from capital expenditure Kalbe Farma in 2013, which reached Rp 1.5 trillion. According Vidjongtius, until the first half, the company has spent at least 40 percent of the annual capital expenditure. “The new plant is expected to support business growth in the future,” he said.
In 2012, Kalbe has completed the construction of dairy factory in Sukabumi, West Java. This plant is the result of cooperation with PT Milko Beverage Industry. Kalbe, which poured an investment of Rp 154 billion, became the majority owner with 51 percent parts.
Throughout 2013, Kalbe targeting revenue growth and net income by 18 percent. That figure is above the growth of the pharmaceutical industry which reached 15 percent. In 2012, Kalbe Farma pocketed a net profit of Rp 1.73 trillion and Rp 13.6 trillion in net sales. Thus, the company targets a net profit of Rp 2.04 trillion and Rp 16 trillion in net sales in 2013.

Pertamina Oil Production Add 3,000 bpd of Madura

A subsidiary of PT Pertamina (Persero), Pertamina Hulu Energi West Madura Offshore (PHE WMO) managed to increase oil production of 3,000 barrels per day (bah) and 10 mmscfd of gas.

General Manager of PHE WMO H Kardono Bambang said, adding that diproduksikannya wells from the platform PHE 54.

“So PHE WMO production today reached 24,200 barrels per day (bpd) production increased 77 percent compared to the current production was first administered PHE WMO WMO Block on May 7, 2011 and which only amounted to 13.725 bph,” Bambang said in Jakarta, Thursday (1 / 8/2013).

Bambang added that the pavilion PHE 54 bridge is one of three new rigs and one platform improvements constructed and installed after the block is managed by PHE WMO WMO.

“With the completion of projects in the pipeline under the sea 16 inch long 21 kilometers connecting 54 PHE, PHE PHE 39 and 38B to Poleng Processing Platform (PPP), the four wells in Pavilion PHE 54 can begin to be produced,” said Bambang.

Bambang said, in the second half of 2013, PHE WMO will drill nine development wells.

“With the addition of the wells are then expected to meet production targets are already in stake in the work plan budget (Work, Plant & Budget / WP & B) WMO 2013. Semester of 14 thousand barrels per day, until the end of the year hopefully up to 20 443 bpd. We still completed nine wells hopefully rise again, “he said.

2.5 Born Every Minute 1 TVS Motor

Indian motorcycle manufacturer TVS already has an assembly plant in Karawang. The factory started up since 2007 in 2.5 minutes could give birth to 1 unit of TVS motors.

The factory is located in Industrial area Suryacipta City Jl. Surya Madya I Kav. 1-30 Kutanegara Village, cikampek 41 361 East Karawang, West Java.

It was announced by TVS Motor Vehicle Assembling Indonesia, Agus Ahmad Yani told reporters on the sidelines of TVS factory visits, on Tuesday (07/23/2013).

“Every 2.5 minutes of birth 1 unit of TVS motors here. Granted my opinion is still quite long but it was good enough for us,” said Agus.

In one day the factory has an area of ​​20 hectares, is capable of producing 150 to 200 units of TVS Motor and consists of 1 line to 1 line for import and export.

“If the 1-year total of approximately 30,000 units and 40 percent for domestic, and 60 percent more for export,” he explained.

To export itself, TVS factory in Karawang cater to several countries in Southeast Asia such as Myanmar, Iran to the Philippines.

“For one month export around 1,000 to 2,000 units and send the type of motor sport ducks and the TVS Rockz, Sport Apache,” he added.

Meanwhile, there are 2 parts to export the CKD and SKD. “For our full part CKD, SKD form that unit but removable front and rear tires,” he concluded.

First semester of 2013, Pertamina EP Records Profit of Rp 10 Trillion

In the first half (I) 2013, PT Pertamina Exploration and Production (EP) posted a profit of Rp 10 trillion more. Targeted for this year, a subsidiary of state-owned PT Pertamina is able to reap a profit of Rp 18 trillion.
Public Relations Manager of PT Pertamina EP, Amperianto Agus told reporters in Jakarta, Saturday (3/8) night suggests, corporate profits optimistic embrace of it is based on the production performance of oil and gas corporation that produced it.
He said that the present level of oil production per day PT Pertamina EP reached 132 thousand barrels. The expected production rate constant and even increases with the exploration and discovery of new reserves by corporations. “In 2012, corporate profit reached Rp 21.5 trillion,” he said.
This year profit target of Rp 18 trillion does not mean a decrease compared to last year. Agus argues that profits surge last year in addition to the corporate consistency in producing oil and gas, as well as exchange rate differences and the rise in oil prices in the international market.
“Target profit last year (2012) amounted to Rp 17 trillion,” he added.
Most of PT Pertamina EP oil fields located in Sumatra, especially in Jambi, South Sumatra, North Sumatra, and Riau. Pertamina EP also has oil fields in West Java, Central Java and East Java.
“We’re also there is quite a large project in Central Java and East Java. BUT, it is where the gas production is later used to supply gas power plant Tambaklorok Semarang. If that was to be our gas production, is estimated to be saving USD 2 billion of fuel conversion used oil to gas power plant Tambaklorok Semarang, “he explained.
As a subsidiary of PT Pertamina engaged in the upstream oil and gas sector, according to Agus, operational and corporate performance requires the support of many parties, especially the government and society.
Oil theft cases in a massive scale in the pipeline Tempino-Plaju South Sumatra should not happen in other places. In the pipeline along the 265 kilometer (KM), he said, about 75% have been embedded in the ground at the depth of 1.5 meters to 2 meters.
“But, it remains stolen. Trick with building above the oil pipelines, oil pipelines and oil drilled and taken,” he said.

PTPN Unified Create Largest Indonesian Sugar Factory

PT PTPN III, XI, and XII plans to build a sugar factory along with the name of PT Industri Gula Glenmore. Largest sugar mills in Indonesia later this stake by 60 per cent owned by PTPN III, PTPN XI 10 percent, and the remaining 30 percent had PTPN XII.

This determination was Minister of State-Owned Enterprises, Dahlan Iskan, in his office, Jakarta, Tuesday, July 23, 2013.

The plant will produce primary products and white sugar premium products such as bio-ethanol bandwagon, bio fertilizer, and animal feed.

The plant will be built with a processing capacity of six thousand tons of cane per day and will be increased to eight thousand tons per day in the end. At the beginning of production of the company is expected to earn as much as nine percent yield, so the premium of white sugar production could reach nine thousand tons.

The factory is located in East Java will be supplied entirely from plantation PTPN XII. The construction itself is expected to cost Rp1, 5 trillion.

“This plant should be completed within 22 months, since the completion of the project has been adapted to harvest sugar cane grown to be supplied to Glenmore. If it’s too late. Later sugarcane to be supplied to anybody,” said Dahlan.

Petrochemical plant construction is expected to hit imports

Director General of the Ministry of Industry, Manufacturing Industry, Panggah Susanto said, with the new petrochemical plant planned to be built in West Papua is expected to reduce the number of Indonesian imports of raw materials.

“These projects will be able to reduce the importation of raw materials which, according to the data in 2012 reached 16 billion U.S. dollars for chemical raw materials,” said Panggah after witnessing the signing of the MoU between Ferrostaal Industrial Projects by PT Chandra Asri Petrochemical Tbk, in Jakarta on Thursday.

He said that with the cooperation will be produced basic products, such as propylene and polypropylene, which will not reduce the importation of raw materials.

“Hopefully, in 2019 to be operational, which we seek is how as soon as possible to get gas allocation,” he said.

Panggah explain step construction of the plant is part of the Ministry of Industry to develop two important sectors in Indonesia related to the chemical industry base and base metals.

“Two of the basic industries we encourage its development, it is important because it aligned with the growth of domestic industry, which will increase the need for raw materials and capital goods,” he said.

He said later that the results of the plant is expected to require an investment of $ 1.8 billion will be earmarked for the domestic market.

“Domestic demand is big enough, then it will be destined for the domestic market,” he said.