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.

PSC which is 7 Oil Production Exceeds Target

JAKARTA – Special Unit Managing Upstream Oil and Gas (SKK Migas) said oil production in the first half of this year reached an average of 831,118 barrels per day (bpd), or 99 percent of the target set in the state budget in 2013 amounting to an average of 840,000 barrels of oil per day.

Head of Oil and Gas SKK Rudi Rubiandi, said as many as seven Sharing Contract (PSC) surpassed the revised budget target of 2013.

“That ConocoPhillips Indonesia Ltd, Vico Indonesia, Medco E & P Indonesia (S & C Sumatra), PHE ONWJ, Chevron Pacific Indonesia, Medco E & P Indonesia (Rimau) and ConocoPhillips (Grissik) Ltd,” Rudi said in Jakarta, Thursday (01/08/2013 ).

The following oil production of 7 KKKS who achieved the target:

1. ConocoPhillips Indonesia Ltd managed to achieve oil production by an average of 34 867 barrels per day from the target in the state budget in 2013 amounted to 32 890,

2. Vico Indonesia managed to produce as much as 13,740 barrels of oil per day from the target of 13 010 barrels per day,

3. Medco E & P Indonesia (S & C Sumatra) managed to produce 6,841 barrels of oil per day from the target of 6,630 barrels per day,

4. PHE ONWJ managed to produce 38 996 barrels of oil per day from the target of 38 080 barrels per day,

5. Chevron Pacific Indonesia managed to produce 323 014 barrels of oil per day from the target of 319 430 barrels per day

6. Medco E & P Indonesia (Rimau) managed to produce 14,086 barrels of oil per day from the target of 14,060 barrels per day

7. ConocoPhillips (Grissik) Ltd managed to produce 9,435 barrels of oil per day from its target of 9,430 barrels per day.

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.

Industry: Login Steel, Out Cars

In the end I was able to see first hand one of the six plants Tata Motors in India in early July. And I deserve to take my hat off to India, especially Tata Motors already has a facility that motor vehicle industry that is not exactly small.
Tata Motors plant in Pune, Maharashtra is the second largest after the first plant in Jamshedpur which is active since 1954, after the plant is used as a starting locomotive 1945.
Initially I suspect manufacturing facility in Pune like Tata Motors car assembly plant generally in Karawang, Indonesia. Because of that, when I and a group of journalists asked to fill three vans no glass window, my forehead was wrinkled. “The car rides? As if still further? “Inner me.
“Please you select the van that we have provided. All can sit on the side of the window. We will guide you around the Tata Motors manufacturing facility here, “said the man was an employee of Tata Motors.
Without asking, I then select the leading van and took a stool at the side of the door. My goal, so that when he arrived at the location of the assembly plant, I could go down more quickly.
But my guess fumble. Tata Motors factory is very large, unlike the automobile factories in the country I have ever visited. Tata Motors factories around the facility on foot it seems like you are doing.
Extensive manufacturing facilities in Pune Tata Motors reached 325 hectares. This means three times the size of land owned Toyota’s manufacturing facility in Karawang.
So no wonder if Tata Motors presents ‘fleet travel’ to support guests who do a factory visit. And unique, it turns out the car that we crawled inch by inch in the Tata Motors factory. But if the Toyota or Honda factory in Karawang we simply walk away.
“Imagine if we had to walk, it can be drunk. Huge turn out. It’s hell, one-stop manufacturing. Steel entrance, exit (factory) so the car, “said journalist friend, while comparing with vehicle manufacturing facility in Indonesia.
Yes, that was the fact. Tata Motors factory is not only large, but also has great equipment supported to be able to build the car from zero.
I own a close look at how Tata Motors assisted robotic technology capable, builds transmission system, axle, suspension, chassis, body panels, until the machine. In this factory not only assembled commercial vehicles, but also passenger vehicles, such as the Tata Indica.
So it’s not like the world automobile factories in Indonesia, which only gives us assemble ration-penel body panels, interior, and engine. While the bolts were still imported from Thailand.
What about the quality of the products produced from Tata Motors plant? It tastes pretty common question answered by giving evidence that some truck and bus transmission system Mercedes-Benz was also made at the Tata Motors facility in Pune.
And, the leader in India’s commercial vehicle sales also have to build heavy military vehicles, including large trucks ballistic missile launchers. Remarkably, all can be done at the Tata Motors facility.

Salt Production Industry in 2015

High salt industry needs can not be met from within the country. While the self-sufficiency program of salt consumption was realized last year. Therefore, PT Garam (Persero) is ready to produce the salt industry in 2015.

Garam president director of PT Lintang Yulian said it was preparing industrial salt production in Kupang. There, 7,800 hectares of available land in the process will be halved. Covering the core area of ​​5,000 hectares under cultivation and 2,800 direct PT Garam plasma hectares of land managed for the people.

“For the projected production of 600,000 tonnes of core land and 300,000 tonnes of plasma fields. Climatic conditions in Kupang with long summer reaches 6-8 months of very supportive to the development of salt,” he explained.

In addition to PT Garam, the Ministry of Industry is also encouraging private investors to develop the salt industry in Nagekeo, Flores, covering an area of ​​1,050 hectares, which will produce 300,000 tons.

During this time, the salt industry in the country needs to reach 1.8 million tons. Therefore, if the later can be met from within the country as much as 1.2 million tons, imports of industrial salt is only 600 thousand tons.

“Currently we are still conducting a feasibility study. Later followed by basic design and detailed design. Quarter of 2014 is ready to enter the first stage of civil works, such as making land, and other channels. So we expect 2015 production can have,” he said.

Potential development of the salt industry is very large, given the high demand in the country. Currently, almost all industrial needs salt. Such as oil drilling, glass industry, pulp industry, textile industry, to the tannery. “So when the development of the salt industry has matured, the market there,” he said.

Spoken, the development of the salt industry was not done intentionally in Madura. Therefore, Madura focus on developing salt consumption. “In 2012, we are self-sufficient salt consumption. Hence, the salt industry selected other locations,” said Julian.
Estimated for the development of the salt industry in Kupang cost up to Rp 1 trillion, including the development of infrastructure such as ports.

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.

Government Program for Entrepreneurs Build Smelter

President Director of PT Indosmelt, Natsir Mansyur assess government policies increase the mineral processing industry and coal (mineral and coal) in the country is considered to be the right move.
It was an industry pioneer, with reference to the Mining Law No.4/2009, Instruction No.7/2012 no.3/2013 and ESDM.
The smelter industries include copper smelter / gold, aluminum, nickel, iron, and other minerals, because the industry produces raw materials for downstream industries in the country.
“During the import of raw materials for downstream industries needs to reach 80 percent of the existing downstream industries in the country,” Natsir said, Monday (07/15/2013).
He said he appreciates the support of government policy and the Ministry of Economic Affairs, Ministry of Energy and Mineral Resources and the Ministry of Industry to encourage program development through industrial mineral and coal downstream processing and purification (smelter) in the country.
Natsir said, to build its smelter industry varied depending on the type of metal minerals will be produced. According to him, build a smelter is not difficult as long as it was built by the national government employers can be clear, firm, and consistent with the application of the rules in favor of the construction of the smelter industry.
“The government must be clear, firm and consistent since the smelter industry pioneer industries with large investments, futures and high-tech display. Needed so that the rule of law and other incentives,” Natsir said.
PT Indosmelt will build a processing plant and refinery (smelter) copper ore with a capacity of 350 thousand tonnes of concentrate per year in Maros, South Sulawesi. The Company is ready to disburse funds of 700 million U.S. dollars (USD 6.58 trillion).

Pertamina Increase Production of Lube Base Oil Refinery Cilacap LOC

PT Pertamina (Persero), SK Lubricants Co.., And PT Patra SK signed a Memorandum of Understanding (MoU) for the implementation of the feasibility study for a project to increase production capacity and marketing of lube base oil refinery LOC RU IV Cilacap.
The signing of the MoU by Pertamina processing director Chrisna Damayanto, CEO & President of SK Lubricants Kwan Ho Choi, and SK Patra President Personal Dadik in Jakarta,
The feasibility study will include technical, market, and economic aspects of the project will be the basis for the three companies to work together to increase the production capacity of the lube base oil refinery LOC RU IV Cilacap, from Group I to Group II. Through this partnership, LOC RU IV Cilacap refinery will be designed to be able to produce lube base oil Group II which has better quality and environmentally friendly, while still producing lube base of Group I.
The signing of this MOU is in line with Pertamina plans to accelerate expansion in the field of downstream Pertamina to realize the mission of profitable downstream. In addition, this project plans to reinforce the company’s commitment to improving Indonesia’s economy by controlling the domestic and regional markets, according to the vision of a World Class Energy Company and became Champion in Asia in 2025.
“The increase in lube base oil production capacity of RU IV Cilacap Refinery LOC is intended to capture the best possible opportunities in the trend of increasing demand for environmentally friendly lube base in the domestic market, regional and global. It is also in line with Pertamina’s commitment to maintain and preserve the environment, “said Vice President of Corporate communiation Mundakir Ali in a press release on Thursday (04/07/2013).
The feasibility study is expected during the period of 6-8 months. After the signing of this MOU, the three companies will form a joint team to finalize a focused strategic agreement to form a joint venture company.
South Korean companies, SK Lubricants, a leading global player in the field of production and marketing of a variety of lube base oil Group, mainly in the South Korean market, Asia and Europe. SK Patra is a joint venture between PT Patra Niaga and SK Energy is engaged in the production and marketing of lube base oil plant site in Dumai, Riau.

DSNG Records Rp 260 Billion Operating Profit

JAKARTA – PT Dharma Satya Nusantara Tbk (DSNG) in the first semester of 2013 an operating profit of Rp 260 billion in the first half of 2013, up 9% over the previous period of only Rp 238 billion. This is mainly due to the decrease in cost of sales per ton of crude palm oil (CPO) of 8.4% from USD 4.7 million in the first half of 2012 to Rp 4.3 million.

“Although the price of CPO in the international market this year has decreased, the company managed to maintain the gross profit margin of 28% as of last year, and operating profit margin at the level of 15%,” said Andrianto Oetomo, Vice President Director of PT Dharma Satya Nusantara Tbk (DSNG), in a press release.

Recorded net sales of Rp 1.7 trillion. The amount of net sales contributed by the plantation sector reaches 60% or Rp 1 trillion and wood products sector reaches 40% or approximately Rp 0.7 trillion. The revenue contribution from the plantation sector increased 55% compared to last year.

As of June 2013, total assets of the Company’s total of Rp 5.7 trillion, up 11% compared to the last year of Rp 5.1 trillion. Total equity of the Company to Rp 1.9 trillion, an increase of 35.6%.

Analyst: Foreign Funds Back in Second Half

Jakarta (Reuters) – The flow of foreign funds is expected to re-enter the domestic capital markets following a rise in interest rates by Bank Indonesia or BI rate to 6.5 percent, said a stock market analyst.
“Indonesia is the only country to raise interest rates amid slowing economic conditions the world is. Thing that will encourage the flow of foreign capital back to the Indonesian capital market in the second half,” said analyst Hamid Agustini Recapital Securities in Jakarta on Wednesday .
He added that funding opportunities foreign investors back to Indonesia’s capital market is quite large due to the current interest rates in the U.S. only by 0.25 percent.
“The purpose central bank to raise interest rates to attract foreign investors to remain invested their funds in Indonesia,” he said.
Moreover, he added, if the U.S. economic stimulus program was decided to be extended by the Fed that foreign funds will be returned to the country and rose to the level of 5,000 points.
Agustini adding he was optimistic BEI index still can reach levels above 5,000 points, sustained by the strengthening of the shares in the sectors of infrastructure, building construction, in particular sub-sectors of basic industries of cement, consumer, banking and finance.
Head of Research at PT Universal Broker Indonesia, Satrio Utomo said in the last four trading days, foreign investors began to re-enter the Indonesian capital market, although not yet significant. That’s because that sentiment is more external than domestic role.
“Moreover, later this evening, the Fed will provide testimony, expected to be seen from the direction of Fed policy for the second half of 2013, a positive for the market,” he said.
Satrio suggest in the next few days investors can collect banking sector stocks, consumer and construction sub-sectors. Investment strategy is accumulated when the stock price is declining

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