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Old 25th November 2012, 11:46 AM   #3
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Indonesia sugar refining capacity to rise by a third


November 25, 2012

Indonesia's sugar refining capacity will jump by a third to 4.2 million tonnes next year as three more refineries begin production to try and meet rising demand from the food and beverage industries, an industry group said on Tuesday.

There are now eight sugar refineries in Indonesia, which is set to be crowned the world's top importer of raw sugar in the year to September 2013, with existing capacity of 3.2 million tonnes, Suryo Alam, chairman of the Indonesian Sugar Refineries Association, told Reuters.

"Demand for processed food is increasing," said Alam, who also works at Singapore-listed palm trader Wilmar's Refined Sugars Group Indonesia unit, which runs two Indonesian sugar refineries. Sugar refineries are now running at 70 percent capacity but this figure will slip to 65 percent next year as the new refineries pick up pace, he added. Sugar consumption in Indonesia, the world's fourth most populous country, with around 240 million people, is seen growing around 4 to 5 percent annually and stands at about 5 million to 5.5 million tonnes now. Helping boost this demand is industrial use of the sweetener, with raw sugar consumption by Indonesia's food and beverage industries set to climb by 9 percent this year.

Indonesia's Garuda Plans To Sell US$200 Million Bonds For Expansion

source :

November 23, 2012 16:05 PM

Indonesia's Garuda Plans To Sell US$200 Million Bonds For Expansion

JAKARTA, Nov 23 (Bernama) -- A senior official at Garuda Indonesia, the nation's flag carrier, said that the firm seeks to raise at least US$200 million from bond sales next year to finance its expansion plans, China's Xinhua news agency said quoting a local media's report on Friday.

Garuda's financial director Handrito Hardjono said that next year's issuance will comprise dollar- and rupiah-denominated bonds.

"With this combination, the amount of foreign-exchange loss can be minimised," Handrito was quoted by the Jakarta Globe as saying.

He did not provide any other terms of the notes, such as the tenor, coupon and investment banks to arrange the debt sale.

He said that proceeds from the bond sales should be enough to cover at least half of next year's capital expenditure, with the remaining expenses to be covered by bank loans.

"Seventy percent of our capital expenditure next year will be used for planes procurement, while the remaining will be used for working capital,"he said, without giving out the total value of the expenditure.

Indonesian companies have been selling bonds to raise funds in the past year, as the country's return to investment grade rating last year has boosted confidence in fixed-income investments.

Garuda has been benefiting from Indonesia's strong economic growth, as rising household incomes and an increase in travel to the country's many islands have made air transportation a profitable industry.

In an attempt to tap into the country's opportunities, Garuda introduced its Quantum Leap programme to revitalise its fleet and expand its network.

Emirsyah Satar, Garuda's president director, said that the airline sees brighter skies ahead with Indonesia's robust economic performance expected to continue.

"We are really capitalising on the growth of Indonesian economy, "he said, adding that the airline expects to receive 24 new aircraft next year and that"2013 will be a challenging year for Garuda."

Garuda currently operates 95 planes and will receive an additional 10 by year-end. Under Quantum Leap, Garuda projects that it will have 144 airplanes by 2015.

Citillik, Garuda's budget airline subsidiary, will operate 50 airplanes by 2015, more than triple from its current fleet of 16.

Garuda also predicts scheduling more than 1,000 flights per day by 2015, more than double from its current 400 daily flights.

Garuda's net income surged 52 percent to US$56.48 million in the January-September period from a year earlier, while its revenue rose 14 percent to US$2.39 billion.

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