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

Reuters has not verified these stories and does not vouch for their accuracy. Telephone: Editorial: +62-21-384-6364. Fax: +62-21-344-8404 or Help Desk: +803-061-2124 (toll free).

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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.

- GOVERNMENT PREPARES 55 TRLN RUPIAH UNDERLYING ASSETS FOR SUKUK

The government has prepared state-owned property valued at 55 trillion rupiah as the underlying assets for the issuance of Islamic bonds, also known as sukuk, state assets director general at the finance ministry Hadiyanto said.

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BISNIS INDONESIA

- POWER FIRM IN TALKS FOR $1.3 BLN LOANS

Indonesia's state electricity company, PT Perusahaan Listrik Negara (PLN), is in talks over $1.3 billion in loans with a number of banks. The company has appointed HSBC <HSBA.L> as their financial adviser for the financing, which will be used to support its programme to build power plants to generate an additional 8,700 megawatts.

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