PRESS DIGEST-Indonesian Business News - June 3

Following are the leading business stories in the main Indonesian newspapers on June 3.

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THE JAKARTA POST

- ARCELORMITTAL SEES INDONESIA AS REGIONAL PRODUCTION HUB

The world's largest steelmaker ArcelorMittal (ISPA.AS) (MT.N), which is interested in buying a stake in Indonesia's Krakatau Steel, said Indonesia has the potential to become a production base as it has a large domestic and regional market for steel.

- RI WILL NOT RAISE POWER TARIFF UNTIL AFTER 2009

The energy ministry said the government would not raise electricity tariffs until after 2009, the election year, and would seek other ways to tackle higher power subsidies arising from soaring global oil prices.

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BISNIS INDONESIA

- INDONESIA HAS TO CUT RED TAPE TO TAP RUSSIAN INVESTORS

Indonesia's ambassador to Russia said the country has to cut red tape and bureaucracy in order to tap Russian investors, who are expanding aggressively overseas.

- BUKOPIN PLANS TO RAISE 600 BLN RPH FROM BONDS, RIGHTS ISSUE

Indonesian small-sized lender PT Bank Bukopin Tbk (BBKP.JK) said it is seeking to raise 600 billion rupiah ($64.51 million) in a rights issue and bond sale.

- INDUSTRIES TO RAISE ALLOWANCES FOR WORKERS

The Association of Indonesian Employers (Apindo) said that labour-intensive businesses such as the garment, food and beverage, shoe, and cigarette industries, have agreed to raise allowances for transport and meals for workers by 15-25 percent this month following a recent fuel price hike.

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