PRESS DIGEST-Indonesian Business News - May 26

Following are the leading business stories in the main Indonesian newspapers on May 26.

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KOMPAS

- GOVERNMENT SETS ASIDE 7.9 TRN RUPIAH FOR SUGAR REFINERY

Indonesia has set aside 7.9 trillion rupiah ($848.7 million) to revitalise sugar refineries across the archipelago to increase production to 2.7 million tonnes this year, a senior official at the agriculture ministry said.

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JAKARTA POST

- BANK INDONESIA MIGHT HAVE TO RAISE RATES BY 50 BPS IN JUNE

A forum of Indonesian economists said the central bank might have to raise the benchmark BI rate by 50 basis points to 8.75 percent at its monetary policy meeting in June as inflation in May may reached 10 percent.

- INDONESIA'S ECONOMY MORE RESILIENT - IMF

The International Monetary Fund said Indonesia's economy is more resilient and has exceeded expectations in weathering pressures from soaring global oil prices by hitting 6.3 percent growth in the first quarter, higher than its estimate of 6.1 percent.

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BISNIS INDONESIA

- INDONESIA'S PLN REPORTED LOSS IN 2007

Indonesia's state-owned power generating company, PT PLN, reported a loss of 5.65 trillion rupiah in 2007 compared to a loss of 1.93 trillion rupiah a year earlier due largely to higher fuel prices, PLN's vice president, Rudiantara, said.

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