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Nestle spends big in ASEAN despite economic uncertainty

Undeterred by people’s weakening purchasing power amid the global economic downturn, the world’s largest food and beverage producer Nestl* S.A. is investing on a large scale in the ASEAN region, including completing a capacity-enhancement project in its Indonesian dairy processing plant.

The company will invest 260 million Swiss francs (US$240 million) in the region this year, an increase of about 15 to 20 percent since 2008, CEO Paul Bulcke said in Singapore on Saturday, following a tour in some of ASEAN countries.
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Not all firms enjoy incentives

While government has made commitments to extend the fiscal stimulus to businesses through import duty exemptions, not all small businesses have taken this up, as government data shows.

Of the Rp 1.76 trillion (US$174.33 million) allocated to import duty exemptions, the Customs and Excise Office has so far only granted Rp 74.86 billion to sectors importing auto parts, and telecommunication and information devices, director of customs facilities at the Customs and Excise Office, Kusdirman Iskandar said on Wednesday.
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Rio Tinto scraps deal with Chinese firm Chinalco

Anglo-Australian miner Rio Tinto PLC has ended its $19.5 billion deal with Chinese firm Chinalco.

A statement from Rio Tinto on Friday said the Chinalco deal has been “terminated.” Rio Tinto says it will instead seek to raise about $15.2 billion by selling shares.

Rio Tinto and its rival and former suitor BHP Billiton announced Friday that they will set up a production joint venture comprising all of their iron ore assets in Western Australia state, in a move expected to save them billions.
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Indonesia rejects loan offer from S Korea

President Susilo Bambang Yudhoyono said that the Indonesian government would not use external loans to reinforce its fiscal financing although the South Korean government had offered assistance.

“If there is no urgent need, we should not necessarily borrow money although South Korea has offered us a loan,” the president said here before leaving South Korea for Jakarta, on Tuesday.
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