PRESS DIGEST-Indonesian Newspapers - Dec 5

Following are some leading stories in the main Indonesian newspapers on Dec 5.

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JAKARTA POST

- BOURSE OPPOSES BUMI PLAN TO BORROW FOR SHARE BUYBACK

The Indonesia Stock Exchange has slammed a plan by PT Bumi Resources Tbk (BUMI.JK), the country's largest coal miner, to issue medium term notes to finance its share buyback plan, the exchange president director Erry Firmansyah said.

- UNILEVER BUILDS NEW PLANT

PT Unilever Indonesia Tbk (UNVR.JK), a subsidiary of Anglo-Dutch consumer goods company, Unilever Plc (ULVR.L), announced the start up of Asia's biggest plant for their skin care products with a total investment of 500 billion rupiah ($42.46 million).

- BAJAJ TO UPGRADE PLANT CAPACITY

India's second largest motorcycle maker, PT Bajaj Auto (BJAT.BO), plans to upgrade its existing manufacturing plant in Indonesia with a total investment of between $50-$60 million, a senior Indonesian government official said.

- MRT CONSTRUCTION SET TO START IN 2010

PT Mass Rapid Transit Jakarta, a firm due to develop a new mass rapid transportation system in Indonesia's capital Jakarta, said it plans to start the construction of the MRT by early 2010 following the land acquisition process scheduled next year.

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KORAN TEMPO

- MUDFLOW VICTIMS REJECTS GRADUAL COMPENSATION PAYMENT

Around 850 people made homeless by a mud volcano in Indonesia's East Java held a rally in the capital, rejecting the gradual compensation payment scheme by energy firm PT Lapindo Brantas, which is blamed by some scientists for the disaster.