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Wednesday, October 28, 2009

Finance Ministry issued IDR200 billion sharia bonds

as published in Bisnis Indonesia daily newspaper
Rabu, 28/10/2009 00:00 WIB
Finance Ministry issued IDR200 billion sharia bonds

JAKARTA: Finance Ministry issued government sharia bonds (SBSN) worth IDR200 billion through bidding yesterday and set the IFR0003 series coupon at 9.25 percent.

In addition to IDR0003 with six years tenure, the government also sold IFR0004 with 11 years tenure and IFR0005 with 15 years tenure with indicative target of IDR1.5 trillion yesterday.

Sharia Financing Policy Director - Ministry of Finance Dahlan Siamat said the bidder offer stood at IDR4.17 trillion.

But the government only absorbed IDR140 billion of the total bidders and IDR60 billion of the non competitive bidders. The minimum absorption was due to the relatively high demand for yield.

"But, this shows the correction of yield demand level if compared to the sharia tender last two weeks," he said to Bisnis yesterday.

In the initial bid, the IDR0003 and IFR0005 sharia bonds two weeks ago, the government booked IDR5.08 trillion booking.

As from the total offers yesterday, the bidders offered the IFR0003 series at IDR1.42 trillion, IDR0004 IDR1.13 trillion and IFR0005 at IDR1.61 trillion.

Dahlan assumed the high yield offered by the bidders showed the premium demand of government sharia bonds liquidity risk with less instrument or transaction volume at secondary bond market.

The government has given little incentive in the coupons given to the participants. But the government could hardly provide high premium as the government bond issuance is no longer urgent.

"We still have some other instruments and now the government burden for bond issuance has been decreasing," he said without mentioning the figure.

Besides, sharia bank has become the dominant participants offering sharia bond yesterday, which was better than the former tender. (Bisnis/21)

Tuesday, October 27, 2009

The government only absord sukuk Rp200 billion

Irvin Avriano (21)
Bisnis Indonesia
The government only absord sukuk Rp200 billion

JAKARTA: The government absorbs demand of sharia state securities (SBSN / sukuk state) just worth Rp200 billion through auction today due to the yield that asked by the auctioners was too high.

Syariah Financing Director - Ministry of Finance Dahlan Siamat said the government just released a series of government sukuk series of IFR0003. According to him, competitive bidders get the country moving sukuk as much as Rp140 billion, while the noncompetitive participants of Rp60 billion.

"It shows the participants were interested series of short tenured securities," he said when contacted by this afternoon.

He explained besides the IFR0003 that tenured for 6 years, the government also auctioned off a series IFR0004 tenured 11 years and 15 years series IFR0005 with the indicative target of Rp1, 5 trillion.

"But it shows the level correction request from bidders yield compared with sukuk auction two weeks ago." At first auction and IFR0003 sukuk IFR0005 two weeks ago, the government have as much demand for Rp5, 08 trillion, and not released to the bidders sukuk at all.

According to him than the total bid came in at the auction, bidders bid IFR0003 series worth Rp1, 42 trillion, IFR0004 series worth Rp1, 13 trillion, and IFR0005 series worth Rp1, 61 trillion.

Bapepam-LK's website is not accessible

Irvin Avriano (21)
Bisnis Indonesia

JAKARTA: The official website of Capital Market Supervisory Agency and Financial Institution (Bapepam-LK) is not accessible and leads to a site that sells software and computer hardware from Latvia, MikroTik.

Bapepam-LK's site that addresses the since 19:30 o'clock last night can not be accessed again, but on this afternoon can still be seen and accessed as usual.

When asked for information and confirmation, Head of Public Relations of Bapepam-LK Jonerry claims just know about it. He checked into the information technology bureau of Bapepam-LK and justify the interference with the system.

"It seems just not accessible tonight, because if the evening the Risti bureau [research and information technology bureau] Bapepam-LK would provided a report and fix it," he said when contacted last night by

He hoped tomorrow morning the official site conditions of capital market authority was already back at work as usual after officials of in the Risti bureau attended in the office.

Issuence of government sukuk will affected by conducive conditions

Irvin Avriano (21)
Bisnis Indonesia

Issuence of government sukuk will affected by conducive conditions
JAKARTA: A conducive conditions in the secondary market of government bonds (SUN/surat utang negara) is predicted to be the basis for government consideration to offer the return of the Islamic government bond (SBSN/sukuk) this afternoon, after a delayed 2 weeks ago.

The government intends to issue three series of government sukuk this afternoon, namely IFR0003, IFR0004, and IFR00005 this afternoon with the indicative target of Rp1, 5 trillion using the auction method.

IFR0003 and IFR0004 auctions held for the second time, after no bidders demand absorption in the earlier auction that was held two weeks ago.

Bond analyst from PT Kim Eng Securities Dian Abdul Hakim appealed that conducive conditions currently reflected in the global bond market conditions are relatively stagnant.

"In the U.S. bond market, the movement of YTM [yield to maturity / yield in the secondary market] is still normal to fluctuate with a spread [the difference] is greater for T-Bond with long tenure," he said in a research statement that received by this morning.

He said the last few days, tradingof the medium tenured SUN series showed no significant movement. SUN with short tenure and long tenure was also assessed following the pattern of daily transactions as well as last week.

Public offering of PT Pupuk Kaltim bonds worth Rp1, 3 trillion and issuence of PT Salim Ivomas Pratama with value Rp1,25 triliun also will be additional booster for the trading of domestic corporate bonds.

PHEI to Issue Fair Share Price Benchmark

Selasa, 27/10/2009 00:00 WIB
PHEI to Issue Fair Share Price Benchmark

JAKARTA: The Indonesia Bond Pricing Agency (PT Penilai Harga Efek Indonesia/PHEI) by 2012 intends to issue fair daily price for shares not liquidly traded on the stock exchange.

"We intend to realize our plan to issue the benchmark in the long-term. In the short-term, on the other hand, we will focus on bond research first," said President Director of PHEI Ignatius Girendroheru last week.

The plan, he added, was possible since it was not prohibited by the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK/Badan Pengawas Pasar Modal dan Lembaga Keuangan) Regulation V.C.3 on Securities Pricing Institutions.

Director of PHEI Hasan Fawzi continued the product resulted in by the research would take form of fair daily price, which is different from other products, such as the ones issued by the Indonesian Rating Agency (PT Pemeringkat Efek Indonesia/Pefindo).

"The product of Pefindo is the price target for a specific period of time in the future. On the other hand, our product is fair daily price, which can change any time."

Ignatius revealed the company also planed to create the T-bond and corporation bond index, which is expected to serve as a benchmark in transaction.

To create the product, the company is sounding a partnership with several foreign institutions to market and publish the index.

He disclosed that the fair daily price product and the index would charge subscription fee and could only be accessed by the subscribers.

Ignatius told the Bond Pricing & Information Services (BIPS) would be socialized starting in next month for at least a month. After that, he inserted, the service would charge fee.

However, he reminded, the company would keep giving some free services to the capital market players, such as the display of fair daily T-bond price and the yield.

Ignatius explained the company also intended to create fair T-bill daily price at the request of the Directorate General of Debt Management at the Department of Finance.

Such a service, he said, was to help the auction that the government commonly held twice a month. The company, he cited, also gave its valuation of fair T-bond price periodically to the Directorate General of Debt Management Office - Ministry of Finance.

For example, the company helped giving valuation of Islamic T-bond, whose prices were hard to predict as there had only been two variants circulating in the secondary market. (Bisnis/21)

Monday, October 26, 2009

Investors to Monitor Bank Performances

Senin, 26/10/2009 00:00 WIB
Investors to Monitor Bank Performances

JAKARTA: Investors are estimated to monitor financial performances as of September of publicly listed banks as one of the factors, in addition to inflation and interest rate announcements, to consider whether they will invest in the capital market or not.

The Composite Stock Index (IHSG) on the Indonesia Stock Exchange (BEI) is potential to be bearish if the financial sector performance was not as expected by the market.

An analyst at PT E-Capital Securities Ni Putu Kurniasari revealed investors were worried that IHSG recovered too soon than other indices, so that they monitor the financial sector indicators to confirm whether the national economic growth expectation was justified or not.

"Worries on the fact the bourse increased too soon led to corrections last week. Investors again monitored actual data on banking sector performance. The want to know whether the real sector-accelerating industry can survive until the third quarter and can quickly recover amid crisis," he told Bisnis last weekend.

If the financial performance of the banking sector didn't live up their expectation, he added, banking stocks could be sold, which would be potential to lower the index. Previously, the index had been declining three days in a row from Tuesday to Thursday.

At the time, IHSG slumped 0.74% to 2,502.22 when publicly listed PT Bank Danamon announced their earnings for the third quarter of 2009 declined by 22.15% to IDR1.37 trillion from IDR1.76 trillion last year.

"The disappointing performance of Bank Danamon makes investors set no high expectation. In addition, since the positive sentiments have yet been too significant, so that IHSG will still be consolidating," told Ni Putu.

Ni Putu estimated IHSG at 2,500 with a support level of 2,390 and a resistance level of 2,500.

Last week, IHSG fell 1.9% from 2,515.81.In the meantime, the Bisnis-27 index jumped 1.58% to 225.37.

The Kospi index rose by 0.6% to 1,640.17, the Nikkei-225 index increased by 0.15%, and the Hang Seng index was upbeat. However, the Dow Jones index last week fell by 1.08% to 9,972. (Bisnis/ags/21)

Saturday, October 24, 2009

Bapepam-LK recommend Optima suspension

Saturday, 24/10/2009
Bapepam-LK recommend Optima suspension

JAKARTA: Capital Market and Financial Institution Supervisory Agency (Badan Pengawas Pasar Modal dan Lembaga Keuangan/Bapepam-LK) recommend to the Indonesia Stock Exchange (PT Bursa Efek Indonesia/BEI) to suspend all securities traded through PT Optima Kharya Capital Securities.

Bapepam-LK recommendations related to the examination of the case the failure of repaying the discretionary funds (kontrak pengelolaan dana/KPD) who performed by the securities company's subsidiary namely PT Optima Kharya Optima Capital Management.

Yesterday, the authority suspended of the stock trading held by Optima Securities related to the entry of new investors plan.

Chairman of Bapepam-LK Ahmad Fuad Rahmany said suspension taken to avoid further losses for the company's customers and prospective investors who currently wants to buy the company.

According to him, Optima Management allegedly associated with the Optima Securities, so that the need to examine the entire company. "We can recommendations from Sarjito [Inspection and Investigation Bureau Chief of Bapepam-LK] to facilitate the examination, so it's better suspended," he told the press yesterday.

However, he said, the suspension of Optima Securities' stock trading is a right of IDX as a self-regulatory organization (SRO) which oversees securities firms, while Bapepam-LK is only recommended it.

Associated with prospective buyers, Fuad said customers and the public should be careful with the information circulating about the business entity. He said prospective buyers should consider the problems facing Optima Group.

This week, an investor, The Garuda Capital Investama stated intention to acquire the company and bear the obligations of the company.

Request information
Director of Trade and Membership Surveillance of IDX Wan Wei Yiong admitted his side had met with management yesterday and Optima Group was requested more information relating to corporate activities and data customers. In addition, he continued, the stock also requested information about the company's potential investors.

Securities Transaction and Institution Bureau Chief of Bapepam-LK Nurhaida said the securities company was still able to conduct transactions through other securities company, although suspended.

Associated with the new investors, Bapepam-LK will conduct due diligence on next week against Garuda Capital associated with the acquisition group consisting of Optima Securities and Management.

When confirmed, Head of Public Relations & Promotion Optima Group Lidyawati Herdianto justify suspension. He guessed that the stock suspension is related to the transfer of management plans and the owner of, not because of other issues affecting the group. (21)

OSK borer Rp2 trillion in underwriting services

Saturday, 24/10/2009
OSK borer Rp2 trillion in underwriting services

JAKARTA: PT OSK Nusadana Securities Indonesia targets the value number of underwriting bonds and stocks that will increase to Rp2 trillion next year, or twice the value of the guarantee until this year that predicted around Rp1 trillion.

President Director OSK Nusadana Securities Halim Susanto said the company has become a securities underwriter of corporate debt obligations of PT Salim Ivomas Pratama and PT Indofood Sukses Makmur Tbk this year. In addition the company also became the underwriter medium-term debt securities (medium term notes/MTN) PT Astra Sedaya Finance, a multifinance company.

"The composition of underwriting next year about 60% -70% bonds, the remaining is from underwring shares issuence," he said to the press yesterday.

He was optimistic that the investment conditions and underwriting next year, especially shares, will be better next year considering constrained financial market conditions are less conducive.

He said the company also wants into the ranks of the top five in domestic securities in the next 5 years. One way to achieve it, Halim added, by adding new branches to increase the number of customers.

Companies, he said, budgeted funds for Rp2, 5 billion to Rp7 billion to set up 5-10 new branches next year. Company needs funds to build a new branch office around Rp500 million to Rp700 million.

Halim said the establishment of branch offices is to increase the number of corporate customers from around 1700 to 3000 account accounts.

"There are still many potential customers in Indonesia, mostly because it has not educated to invest."

He estimates that the current capital market customers numbered only about 2 million people. According to him, the number of potential people who could be invited to invest up to 10 times or about 20 million people.

He also said the company plans to integrate its trading system to be electronically (online trading) next year so that customers can transact more easily. Convenience, he added, is expected to make potential customers interested in transacting through OSK Nusadana.

Companies, he said, also intended to simplify fee trading shares in several exchange only one client's account in one branch office in a country. Thus, he said, customers do not need to open an account in another country to buy securities in investment destination countries affiliated with the company.

However, he said, the plan requires the approval of socialization and exchange some authority.

Company, he said, is seeking a cooperation with three banks for mutual funds marketing that launched by company's subsidiary, PT Nusadana Asset Management.

Director & Chief Operating Officer of OSK Nusadana Securities Chan Kong Ming added in the next month the company will establish a branch office in Medan.

Currently, 51% ownership of a company owned by OSK Investment Bank Bhd from Malaysia. OSK Investment Bank has 60 branch offices in the country of origin as well as Singapore, Hong Kong, and Shanghai. (21)

S & P raised ratings outlook of Indonesia

S & P raised ratings outlook of Indonesia
'Indonesia a step to achieve investment grade'

JAKARTA: Credit rating company, Standard & Poor's (S & P), raised ratings outlook for Indonesia from stable to positive in line with the fiscal management capacity and improving public debt ratios. Its also related with the strong enough accumulation of foreign reserves exchange.

Bank Indonesia said in a press release yesterday, S & P rating outlook to set long term local currency sovereign credit rating to BB +. While long term outlook for foreign currency sovereign credit rating of BB-.

Net central government debt is projected to drop to 32% of GDP in 2009, from 34% in 2008.

Meanwhile, central bank policy to cut interest rates to lowest level in the last 9 months in order to boost consumer spending could bring Indonesia to avoid the worst impacts of global recession.

Pacific Investment Management Co., which has a global managed funds up to U.S. $ 842 billion, said Indonesia assessing a step to achieve investment grade ratings in 3 to 5 years.

"Indonesia, India, and China are relatively better able to control the global crisis due to sustained domestic demand, supported by a large population, as the main bearings," said Chia-Liang Lian, Pimco fund manager in Singapore, as quoted by Bloomberg, yesterday.

In December 1997, the economic crisis in Asia forced the country with the largest economy in Southeast Asia ask IMF to help lend around U.S. $ 23 billion for the reserves exchange. After the crisi, Indonesia forced to remove the investment grade given by Moody's Investors Service and S & P.

Furthermore, on September 16, 2009, Moody's raised Indonesia's debt level to the highest point in the last 11 years, along with the ability to survival ability in the global recession.

Head of Debt Capital Markets PT BNI Securities Sukartono should assess Indonesia's national ranking improved, given the length of the ranking was not reviewed.

"It seems that Indonesia's current ranking is not based on the current economic condition is very good, especially in the last year that even the [Indonesian condition] better than the condition of other countries a higher predicate."

He said the resistance of the Indonesian economy and debt management while facing the global crisis after subprime mortgage crisis is relatively large.

Indonesian industrial sector, he said, is not so affected as well as several other neighboring countries that experienced significant economic decline.

Rahmat Waluyanto, Director General of Debt Management Office - Ministry of Finance tells the increase in rating outlook reflects the significant improvement of the economy and finance of Indonesia.

"This is the result of prudent fiscal management and a credible monetary so that Indonesia can pass the economic crisis and the financial markets well," he said.

According to him, the credit rating will actually go up if Indonesia can improve its performance in the next 1-2 years. Primarily, through policy or policy reform program in fuel subsidies and electricity.

Although the country economic fundamentals are good enough, Indonesia Finance Minister Sri Mulyani Indrawati said the creation of economic growth and uneven quality is a pressing task that still needs government attempted. This is closely related to poverty reduction and employment creation. (16/21) (gajah.

Thursday, October 22, 2009

Fitch Ratings rated Adaro Indonesia's bond BB+

Thursday, 22/10/2009 15:27 WIB
Fitch Ratings rated Adaro Indonesia's bond BB+

by: Irvin Avriano

JAKARTA ( Fitch Ratings finalizing the bond ratings of PT Adaro Indonesia worth U.S. $ 800 million of guaranteed PT Adaro Energy Tbk as the parent company at the level of BB+. Prospect rankings were determined stable.

The debt securities will mature in 2019. Rates were similar to ratings expectations given by the agency earlier this month.

Based on the press release of Fitch Ratings, the ratings action associated with the completed of the submitted documents by the issuers to Fitch Ratings.

Such ratings reflect support assessed from low cost companies operational, the company's strong financial growth, strong relationships with corporate customers, and the growth of good financial condition.

Besides Adaro Indonesia, five companies in Indonesia will flood global markets with the issuance of U.S. dollar-denominated bonds with a total value of U.S. $ 2.58 billion (Rp25 trillion) in a week or two. The plan indicates that the global bond markets recovered and foreign investors interested in the corporation in Indonesia.

Some executives who know the deal said the four companies include PT Bukit Makmur Mandiri Utama (Buma), PT Chandra Asri Petrochemical Center, PT Indika Energy Tbk by its subsidiaries Indo Integrated Energy II BV, PT Perusahaan Listrik Negara (PLN), and PT Bumi Resources Tbk.

Bond analyst from PT Trimegah Securities Tbk Octavianus Bramantya said issuance rate U.S. dollar-denominated debt will not interfere with the publication carried out several similar issuers later this year.

"For dollar bonds, the investor base is not limited because it should not be solely marketed to regional investors, but more extensive example to Asia or Europe and America."

According to him, funding institutions such as investment managers, hedge funds, private equity, and other global investors are still quite large compared with the regional market and domestic market.(Er)

Three series of sukuk issued on October 27

Thursday, 22/10/2009 15:20 WIB
Three series of sukuk issued on October 27

by: Irvin Avriano
JAKARTA ( The Government intends to publish again the two series of Islamic securities (SBSN/surat berharga syariah negara-sukuk) and a new series on October 27. Indicative target from the government around of Rp1, 5 trillion.

In a press release published by Directorate General of Debt Management - Ministry of Finance said they will reauction the sukuk series of IFR0003 and IFR0004 that will mature in 2015 and 2020.

The two series were auctioned earlier two weeks ago, but the government barely didn't let the sukuk published because the yield asked by the market players were too high. The government will also auction off IFR0005 series that will mature in 2024.

Sukuk auction will be followed by the country's 15 institutions comprising 11 banks and four securities. The government is still allowing other financial institutions who want to become bidders to register themselves.

PT Bank Jabar Banten and PT Bank OCBC NISP Tbk will be the bidder who is not a primary dealer of conventional debt (SUN/surat utang negara) issuance. In addition, other bidders are PT Bank Mandiri Tbk, PT Bank Rakyat Indonesia Tbk, and PT Bank Panin Tbk.

The others are PT Bank Negara Indonesia Tbk, PT Bank Permata Tbk, PT Bank CIMB Niaga Tbk, Indonesia branch of HSBC Plc, Standard Chartered Bank NA branches Indonesia, and PT Bank International Indonesia Tbk.

Besides banks, four securities entitled to bidders namely PT Danareksa Securities, PT Mandiri Securities, PT Bahana Securities, and PT Trimegah Securities Tbk.

Throughout 2008 until now, the government has made publishing SBSN with a total value of Rp19, 8 trillion. For example Ijara SBSN fixed rate series, retail sukuk, the global sukuk, and the letter debt of Indonesian hajj funds (SDHI/surat dana haji Indonesia). Issuance was published through bookbuilding method and the private placement.

Sukuk issuance plans country through the auction method is expected to make the process more efficient from the cost side and more transparent. (Er)

Henan borer increase funds from HPAM Premium-1

Thursday, 22/10/2009 13:56 WIB
Henan borer increase funds from HPAM Premium-1 around Rp200 billion

by: Irvin Avriano
JAKARTA ( PT Henan Putihrai Asset Management targeted funds under management increased to Rp200 billion after the mixed mutual fund HPAM Premium-1 from distributing the investment product by PT Bank Rakyat Indonesia Tbk (BRI) until the end of this year.

Previously, mutual fund products that are marketed through the company's management.

In addition to being an agent of the seller, BRI also became custodian securities mutual fund.

"The company hopes the funds under management products HPAM Premium-1 will reach Rp700 billion at the end of next year," said President Director Henan Putihrai Fresty Hendayani to the press this afternoon.

Currently, the company already manages funds amounting to Rp1, 7 trillion - Rp2 trillion donated by mutual fund HPAM Premium-1, capital protected fund HPAM Maestro Flexi, HPAM Protection-1, and some discretionary fund (KPD/kontrak pengelolaan dana) that managed bty the company. From the three mutual funds, the company managing funds around Rp300 billion - Rp500 billion.

Fresty said the firm also intends to publish three new funds next year, which will also be distributed through the BRI as a selling agent.

Director of Investment Henan Putihrai Mangko Bedjo adding the new mutual fund products will be fixed-income mutual funds, money markets, and stocks. Companies, he said, also will try to embrace several other banks that will act as dealer-managed mutual fund company.

Mangko Bedjo said the company intended to increase the total amount of asset under management to be Rp4 trillion - Rp 5 trillion in the next year from sales through banks. With the services of the bank, he hopes the retail investor base the company grow from the current composition, which only reached 20% of the total funds under management of the company. (Er)

Coupon MBS DSMF-BTN 11%

as published in Bisnis Indonesia daily newspaper
Thursday, 22/10/2009
Coupon MBS DSMF-BTN 11%

JAKARTA: Coupon mortgage-backed securities (MBS) Danareksa Sarana Multigriya Finansial-Bank Tabungan Negara (DSMF-BTN) II/2009 set at level 11% and tenured for the next 7 years.

The derivative securities will be issued by PT Sarana Multigriya Finansial and collateralized by mortgage loan from PT Bank Tabungan Negara.

"The company set a publication of the first derivative securities that a number of Rp369 billion, and could not be increased because the amount was closed," said SMF's Corporate Secretary Eko Ratrianto yesterday.

The issuence is underwrited by PT Standard Chartered Securities Indonesia whose helped by PT Danareksa Sekuritas, PT Mandiri Sekuritas, dan PT Bahana Securities.(Bisnis/21)

Indika intends to issue US$230 million bonds

Kamis, 22/10/2009 00:00 WIB
Indika intends to issue US$230 million bonds
Fitch gave B+ rating to the new bonds

JAKARTA: PT Indika Energy Tbk plans to issue US$230 million bonds or IDR2.18 trillion to cover capital expenditure particularly to develop PT Petrosea Tbk.

An informed executive said the bond issuance will be done through the subsidiary firm, Indo Integrated Energy II BV with Citi as the underwriter.

The bond is guaranteed by Indika Energy and other subsidiary firm, PT Indika Inti Corpindo. "Today Indika is scheduled to have road show on bond issuance abroad," he said to Bisnis yesterday.

Indo Integrated in April 2007 issued US$250 million bonds with 8.5 percent coupon per year. The sales of five year tenure bonds is assisted by ING and JP Morgan Securities.

Vice President & Investor Relations of Indika Energy Retina Rosabai was not available for comment on it.

Bond analyst of PT Trimegah Securities Tbk Octavianus Bramantya considered the US dollar denomination bond issuance will not hamper the similar issuance of some other emitters this year.

"The global bond has unlimited investors basis and thus it would be better if the market is not limited to regional ones but also to Asia, Europe, and America."

The institution fund like investment manager, hedge fund, private equity, and other global investor remain fairly significant if compared to the regional and domestic markets.

The inflow of foreign investors particularly from advanced to the developing countries following the low interest rate which could succeed the bond sales and other corporate.

Fitch Ratings today upgraded the rating of the long term foreign and local currencies of Indika Energy from B to B+ with stable prospect.

Fitch also rose the senior bond rating worth US$250 million matured by 2012 along with the expectation rating of B+ to the scheme of Indo Integrated Energy II bond issuance.

The growing rating reflected the soaring dividend significantly from PT Kideco Jaya Agung, the third largest coal debtor nationwide with its 46 percent shares are owned by Indika worth US$90 million in 2008 become into US$210 this year.

Fitch estimated the dividend will remain high value and stable as seen by the high coal price now and Kideco scheme to increase the production into 31 million tons by 2011 as from DIR22 million tons last year.

But Indika rating is still restricted to the status as holding company which gets some cash flow from dividend by Kideco.

The restriction could be mitigated with the agreement made by Kideco shareholders which ensure that all Kideco free cash flows will be distributed as the dividend and Kideco has got no debt.

The rising rating of the corporate also considers the acquisition of Petrosea which makes Indika business complete.

By end of June 2009, Indika had IDR2.5 trillion cash (excluding short term investment and cash with limited use).

Bond issuance will grow the corporate cash. The management plans to have expansion on energy sector.

Fitch predicted most corporate cash will be budgeted for the acquisition of energy sectors.

Stable prospect reflected the expectation of Fitch that Indika could maintain the loan profit with the support given by the cash flow growth despite the new debt. (Bisnis/wiw/21)

Bakrieland targets IDR2 trillion from the subsidiary firm divestment

Kamis, 22/10/2009 00:00 WIB
Bakrieland targets IDR2 trillion from the subsidiary firm divestment

JAKARTA: PT Bakrieland Development Tbk aims to tap some IDR2 trillion from the subsidiary firm divestment in three business sectors next year. Each sold shares 30 percent at maximum.

President director of Bakrieland Development Hiramsyah S. Thaib said the three sectors to be sold here include hotel and resorts, city property , and toll road. The company has studied to lure Middle Eastern, US, Australia, and British new investors which was initiated from the road show to London and New York.

"The scheme stipulates better economy condition," he said to the press yesterday.

The company has five business sectors, namely hotel and resort, city property, toll road, landed residential, and also water treatment that comprising 13 companies. From city property, Bakrieland has three subsidiary firms, PT Bakrie Swasakti Utama, PT Bakrie Bangun Persada, and PT Bakrie Pangripta Loka.

Five subsidiary firms in hotel and resorts include PT Samudera Asia Nasional, PT Berkah Puhu Lestari, PT Krakatau Lampung TD, PT Libratindo Gemilang, and PT Bali Nirwana Resort. From landed residential sector, the company has PT Graha Andrasentra, PT Dutaperkasa, and PT Mutiara Permata Biru.

The other subsidiary includes PT Semesta Marga Raya for toll road. Meanwhile, PT Aetra Air Jakarta is the subsidiary firm of Bakrie for water treatment sector.

Following the issuance of bond I/2008 and I/2009 sharia bond, the company also opened options for the similar bond issuance when the interest rate and yield of the government bonds are still low like now.

In the future the research released by August 31, analyst of JP Morgan Chase & Co Stevanus Juanda increased the estimated price loss into IDR530 in the next 12 months. The price rosen from Rp500 level. (Bisnis/21)

Wednesday, October 21, 2009

Bapepam-LK probed Aqua

Rabu, 21/10/2009 00:00 WIB
Bapepam-LK probed Aqua

EGMS plan suspension potentially hampers go private plan
JAKARTA: The Capital Market and Finance Institution Supervisory Agency (Bapepam-LK) probed PT Aqua Golden Mississippi Tbk due to the indication of violation committed by the corporate management.

An informed executive said there is shareholder reporting the alleged irregularity resorted by Aqua dealing with the tender offer price of IDR450,000 per share unit.

Based on the documents and evidences handed over by the shareholder, Bapepam-LK involved in further investigation. "As to them (shareholders), the tender offer price was higher (than the fair price). Bapepam-LK found some things need investigating," he said to Bisnis Monday.

Other Bisnis resource said the case now has been under the investigation of Bapepam investigation bureau as authorized by the Bapepam's real sector company finance assessment bureau.

When asked, Investigation Bureau Chief of Bapepam-LK Sarjito conceded the case investigation. But he declined to unveil the detail of the investigation conducted by the bureau. "We are in process," he said.

The probe will eventually lead the Aqua management to suspend the extraordinary general meeting of shareholders (EGMS) on go private and Aqua voluntarily delisting agenda which should have been scheduled on October 13.

"The management called for the suspension of EGMS upon regarding the existing internal matters," said a resource who declined to mention his name.

But Corporate Secretary Theresia L. Setionegoro refused to comment. "Just call me another day."

Aqua made another plan to become go private when 2001 and 2005 failed to get approval from public shareholders. In December 2005, public shareholders disapproved the management tender offer price proposal. The IDR100,000 tender offer price was deemed too low.

Now, to materialize the ambition, Aqua should obligatorily buy 743,383 public shares or 5.65 percent of the total shares issued by the company through tender offer.

On September 8, Aqua announced tender offer price of IDR450,000. The price reflected the premium of 83.82 percent from the top price at market in the past 90 days.

Aqua shares was traded at the last time on June 4, 2009 on the level of IDR244,800 following the jump rise of 20 percent or IDR40,800 from previous transaction.

Indonesia Stock Exchange suspended the Aqua stock trade since session I June 5 due to the go private scheme of the bottled mineral water producer here.

Johanes Soetikno, one of Aqua shareholders who is also member of the Indonesian Securities Investor Community Expert Boards (MISSI/Masyarakat Investor Sekuritas Seluruh Indonesia), considered the tender offer price was proper with doubled upper than the market price. "If it could be IDR500,000 it would be better. But the offer is good. I guess I would take the offer here," he said recently. (Bisnis/pul/21)

Tuesday, October 20, 2009

Yudhoyono's Cabinet II immediately announced, the price of SUN allegedly stable

Tuesday, 20/10/2009 10:51 WIB
Yudhoyono's Cabinet II immediately announced, the price of SUN
allegedly stable
by: Irvin Avriano

JAKARTA ( The price of bonds (SUN) predicted will be stable in the next two days, given the government's cabinet immediately announced tomorrow, with a potential decrease in thin ahead of the debt securities auction this afternoon.

The government plans to auction three series of its debt with the indicative target of Rp3 trillion this afternoon. Series is offered SPN20101007 due on 07 Oktober 2010, FR0040 maturing 15 September 2025, and FR0052 which will mature on August 15, 2030.

Bond analyst PT Kim Eng Securities Dian Abdul Hakim said that although there are indications the government's economic team of ministers deemed appropriate market expectations, predicted traffickers continue to try to lower prices today.

The decrease in price will cause the value of increased yield and make the price at the SUN will terdiskon auction.

"Principals have the market's expectations when YTM [yield to maturity/yield in the secondary market] is going through the increase and considered a natural YTM, then the chance of getting relatively cheaper price will be greater," he said in a research company that received this morning.

He explained that predictions are not taken based on the demand bidders in the auction sharia state bond securities (SBSN/sukuk) last week. At the auction, the government did not take the offer because the required yield is too high from the government's target.

According to him, optimism ahead of the inauguration today is not enough to make market participants retain ownership of the instruments in the short term SUN on trading yesterday.

Bond analysts PT Bank Danamon Indonesia Tbk Helmi Arman predict at auction today will yield the government released for SPN20101007 series revolves around the level of 6.85% -7%. FR0040 series will be released at the level of 10.45% -10.6%, and FR0052 series at the level of 10.55% -10.7%. (Er)

Monday, October 19, 2009

Reliance to switch IDR100 billion portfolio

Senin, 19/10/2009 00:00 WIB
Reliance to switch IDR100 billion portfolio

BOGOR: PT Reliance Securities Tbk will ask for the shareholders' permission to switch their IDR100 billion's worth investment portfolio to shares in companies in the banking sector.

Therefore, the company will hold a Shareholders' General Meeting (RUPS/rapat umum pemegang saham) on November 10, 2009.

President Director of Reliance Securities Orias Petrus Moedak revealed the company intended to switch their investment funds.

"Most of our investments in shares have realized profit since early this year," he told the press last weekend.

He said the company viewed shares in the banking sector would still be potential to give huge returns in the long term.

However, Orias declined to mention the names of the banks whose shares Reliance planned to buy or to mention the names of the companies from which the investments would be switched.

The company has shares in several companies, such as PT Kawasan Industri Jababeka Tbk and PT Sentul City Tbk (PT Bukit Sentul Tbk).

According to him, the company had asked the the Capital Market and Financial Institution Supervisory Agency's (Bapepam-LK) about the necessity of RUPS to get permission.

The capital market authorities, he added, indicated there was no need to hold RUPS. Nevertheless, the company still wanted to hold the meeting to maintain good relations with its shareholders.

The company until the third quarter of 2009 was able to increase its amount of cash balance to IDR120 billion.

In addition to switch investment portfolio, the company also plans to ask for its shareholders' permission to issue bonds worth IDR125 billion this year.

The amount of fund will be allocated to grow online trading that the company has developed since last year.

Orias said the company hoped the bond could be underwritten by PT Danareksa Sekuritas and PT Victoria Securities. He explained the two securities companies once underwrote Reliance Securities' IPO.

The company just planted 400 trees on 1 hectare of land at Gunung Gede-Pangrango National Park that donated part of the sale of retail T-bonds (ORI/obligasi negara ritel) series 006. The company sold the debt securities worth around of Rp170 billion.(Bisnis/21)

Thursday, October 15, 2009

More secure with dollar cost averaging

Sunday, 14/06/2009
More secure with dollar cost averaging

by: Irvin Avriano (21)

You may be tempted by the rise of stock price of Indonesia Composite Index (JCI) when hit return about 70%, the price index of government bonds (SUN/surat utang negara) up to 35% measuring from the lowest point in October last year.

For a moment the numbers are very tempting you to invest immediately. However, you should not attracted instant games and mess around with the gain. "Do not completely rely on the timing of investment, also apply to the dollar cost averaging [DCA] because it can be more profitable," said President Director of PT Manulife Aset Manajemen Indonesia Denny Thaher reminded.

DCA is a tactic to invest in stages with the same amount on a regular basis and requires investors to be discipline, as not to allocate large funds at just in one time (lump sum). PRESS RELEASEThe investment strategy designed to reduce volatility in which securities, fixed amounts at regular intervals, regardless of what direction the market is moving. Thus, as prices of securities rise, fewer units are bought, and as prices fall, more units are bought. also called constant dollar plan.

If the customer allocate capital in large numbers once in a basket of investments, Denny said, the potential gain (profit) and risk that investors will be bearer.

That is contrary to the allocation of investment along with the gradual, so that customers do not need to take the unit prices or conditions around, yet the long-term investment, right?

Some banks and investment managers (MI/manajer investasi) has started implementing a program run DCA, a regular automatic investment. Denny adds, Manulife Asset Management also intends to launch the program next August. Value of first installment to be made minimal, and some have reached Rp100.000.

The program does not advise investors to add to your mutual fund units in large numbers, it only needs sufficient funds from your savings account with restrictions that have been adapted to the prospectus.

The amount of funds that are added regularly to the open-ended mutual funds that have been owned by investors, will be uniformed, as well as the appointed date of the investor himself.

Similar to a savings plan, additional units will be purchased from the funds in savings accounts. The fund is automatically debited with the amount already set on the date you have set yourself.

Beside Manulife, there are at least five mutual fund dealer who is providing the facility for its customers.

They are Danareksa Investment Management with the programs 'Investasiku Masa Depanku', Citibank NA to 'Citi Regular Investment Plan (CRIP), Commonwealth Bank with 'Regular Investment ', Bank Permata is 'Spend & Save', and Bank Mandiri with 'Investment Plan'.

Head of Investment Service Bank Permata Karma Perkasa Siregar said the company had started the program 'Spend & Save' with Fortis Investments mutual fund Indonesia through Fortis Equitra since a year ago.

Private banks are set first purchase the same unit with the addition of further units in the amount of Rp500.000, the relatively small for those who want to invest regularly.

He said in an investment with these techniques, investors can benefit from it when the value of mutual fund units declined. "With the DCA technique that unit would have bought more bullish than the conditions of [strength]."

Attract customers
Danareksa Investment offers future investment programs with a minimum investment value Rp200.000. In fact, a minimum bid that the product before purchasing Rp1 million. "It is expected that customers will invest more," said Head of Marketing Danareksa Investment Diah Sofiyanti. Unmitigated, six mutual fund companies are ready to apply by the program.

Wealth Management Group Head, Bank Mandiri Inkawan D. Jusi said that the company had applied DCA techniques to the program's new Installment Plan socialized early this year. This program, he said, allows customers who usually have to come to the bank wanted to increase the amount of each investment.

Bank Mandiri offers 27 pieces from seven mutual funds that make the MI state bank is a mutual fund dealer.

According to him, enough with the first installment of Rp500.000 generally for a mutual fund, investors can invest regularly units minimum purchase, usually at least Rp100 thousand, depending on the minimum purchase in the prospectus.

Citibank has also prepared program'Citi Regular Investment Plan (CRIP). This program highlights the ease of recommendations for the client to allocate its investments in several capital market investment assets, namely stocks, bonds, and money market.

"Jump is detected when the customer fill out a risk profile, they are encouraged to invest into the type of investment asset, not mutual funds, and we monitor it every time," said Head Investment of Citibank Harsya Prasetyo.

Another with the ease at which Commonwealth Bank offers Regular Investment programs. The program enables customers to invest in more than 50 open-type mutual funds from 10 MI private bank clients are.

According to Head of Wealth Management Commonwealth Bank Rian Kaslan, the program can also be accessed via the Internet, so customers just enough time corresponding to open investment accounts in the branch office.

To facilitate customers to allocate funds, DCA system can be implemented with the help of my program which is managed plan, a community owned non-profit sites mutual fund investors.

"It's easy, just sign up to the site and enter the targets of long-term investment in my plan," said the initiator of the site, Adityo Hidayat.

According to Denny Thaher, DCA applications through investment programs in several banks potentially become the core of the mutual fund industry. So, when banks and others following MI? (

Wednesday, October 14, 2009

Government cancels Islamic bond issuance

as published in Bisnis Indonesia daily newspaper

Wednesday, 14/10/2009 00:00 WIB
Government cancels Islamic bond issuance

JAKARTA: The government didn't absorb at all subscription made by the bidders at the auction for Islamic T-bond series IFR003 and IFR004 yesterday, leading to the cancellation of the bond issuance. The amount of subscription to the Islamic T-bonds reached IDR5.08 trillion.

The government planned to issue two Islamic T-bonds series IFR003 and IFR004 through auction yesterday and targeted to raise IDR1.5 trillion fund. IFR003 is a six-year bond, while IFR004 is an 11-year bond. Previously, the government issued Islamic T-bond series IFR001 and IFR002 last year through book building.

Director General of Debt Management Office at the Ministry of Finance Rahmat Waluyanto revealed the government didn't absorb the subscription since the average yield asked was above the yields of T-bonds in the secondary market.

"We have some reasons for not absorbing the subscription. One of the reasons is the relatively higher cost due to the high yield asked," he explained yesterday.

At the auction, the bidders recorded a total subscription of IDR5.08 trillion. The lowest and highest yields they asked for Islamic bond series IFR003 are 9.75% and 11.5%, respectively, while the lowest and highest yields they asked for Islamic bond series IFR004 are 10.5% and 12%, respectively.

Albeit declining to expose the yield expected by the government, Rahmat admitted the bid made by the Islamic financial industry was relatively smaller than that made by the conventional one.

He hoped the next auction would be able to attract more interests from the Islamic financial institutions.

According to Rahmat, the government was not worried with the cancelled bond issuance since T-bond issuance this year had reached 90% of the target. In addition, he inserted, the government had other debt instruments, such as Indonesian hajj [pilgrimage to Mecca] fund certificate (SDHI) and standby loan.

Director of Islamic Financing at the Ministry of Finance Dahlan Siamat said the government still intended to put into auction similar Islamic bonds this year.

According to him, auction enabled the government to save more money compared to bookbuilding.

Dahlan also admitted many market players asked the government to put into auction the Islamic bond already issued, so that Islamic debt securities trading in the secondary market would be more upbeat. However, he added, the government could not grant the request since Islamic T-bond series IFR001 and IFR002 prices in the secondary market had been too high.

"We cannot sell the bonds if the prices have already been too high in the market. If we force to sell the bonds, it will affect the already good price in the market." (Bisnis/21)

Tuesday, October 13, 2009

PP Issues Bonds worth IDR125 Billion

Selasa, 13/10/2009 00:00 WIB
PP Issues Bonds worth IDR125 Billion
JAKARTA: PT Pembangunan Perumahan (PP) issues medium-term notes (MTN) IX B/2009 worth IDR125 billion, which will mature in February 2011.

Corporate Secretary of PP Betty Ariana revealed the company appointed publicly listed PT Trimegah Securities Tbk to underwrite the bond issuance. However, he declined whether PP would issue another similar instrument this year.

Data by PT Kustodian Sentral Efek Indonesia yesterday showed PP would pay the coupon to the investors once every three months. The first coupon payment will be made on November 15.

PP issued two-year MTN IX A/2009 worth IDR50 billion at the end of last month. Betty stated the company had yet decided whether it would delay or realize the issuance of a similar instrument this year.

Concerning its initial public offering (IPO), the company confirms the government will still hold a 51% stake in the company.

"We will try to make the government still the majority shareholder of the company since this is part of the things we agree to with the House," explained President Director of PP Musyanif to the press yesterday.

He informed the company was only permitted by the House to divest a 30% stake maximum. According to him, the government at the moment controls a 51% stake in PP, while employee cooperative and PP employees seize a 49% stake.

PP appoints the consortium of PT Mandiri Sekuritas, PT Danareksa Sekuritas, and PT DBS Vickers Securities Indonesia to underwrite the IPO. The company and the underwriter plan to do a roadshow to several countries, such as Hong Kong and Singapore, to market the shares.

He exposed the company plans to switch the company's business focus from the construction sector to the infrastructure investment sector after the IPO. "We will receive two incomes, namely income from infrastructure projects and income from our position as one of the shareholders in the infrastructure consortium."

He added revenues from housing construction activities only represented less than 3% of the company's total revenues, while the rest was contributed by infrastructure projects. The company last year booked IDR285 billion in earnings and is working on projects worth IDR4 trillion at the moment. (Bisnis/21)

Monday, October 12, 2009

Batavia Prosperindo targets IDR250 billion

Senin, 12/10/2009 00:00 WIB
Irvin Avriano (21)
Bisnis Indonesia

Batavia Prosperindo targets IDR250 billion
JAKARTA: PT Batavia Prosperindo Aset Manajemen targets the protected mutual fund, Si Dana Proteksi Batavia XVI, could tap IDR250 billion public investments. The product is released by end of the month.

"The product is predicted to have a lot of absorptions due to the relatively short tenure and lucrative yield," said Head of Sales & Marketing of Batavia Aset Manajemen Karma Perkasa Siregar in press release last week.

Si Dana Proteksi Batavia XVI has two years investment tenure.

The company targets the indication of protected mutual fund net yield worth about 9.25 percent per year which will be paid in the form of dividend every month.

The capital market investment product here will be marketed through PT Bank Permata Tbk, PT Bank Commonwealth Indonesia, and PT Bank DBS Indonesia that have got license from Bank Indonesia.

Karma said the mutual fund yield will be gained from the placement of investment portfolio of at least 80 percent on the corporate bond instrument and the other is financial market instrument.

The protected mutual fund product hit the market previously was so-called Si Dana Batavia X, which booked about IDR180 billion. The total fund under management was higher than the corporate target of IDR150 billion.

The product had 16 months investment tenure with net yield indication of 9.4 percent per year. The yield will be paid in quarterly dividend to the investors. (Bisnis/21)

Sunday, October 11, 2009

IDR7.3 trillion bond and 4.17 billion stakes ready to enter capital market

Saturday, 10/10/2009 00:00 WIB

IDR7.3 trillion bond and 4.17 billion stakes ready to enter capital market

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: The IDR7.3 trillion bonds and corporate sharia bonds and 4.17 billion new stakes will hit the market up to end of the year.

Documents submitted to the Corporate Finance Assessment Bureau of the Capital Market and Finance Institution Supervisory Agency (Bapepam-LK) indicated the expectation of the domestic economy players that have been better than that of last year.

"This could show the improvement of market," said Service Sector Corporate Finance Assessment Bureau Chief of Bapepam-LK Noor Rachman yesterday.

He said to ease the emitters interest, particularly the stock emitter, the capital market authority has revised two regulations. The revision aims to lure corporate interest to enter the bourse.

"Thus, they would not have thought longer to hit the bourse as there are many ways to get extra capital in such urgent condition."

Real Sector Corporate Finance Assessment Bureau Chief of Bapepam-LK Anis Baridwan added the revised regulations here include the regulation No.IX.D.4 on Capital Increase Without Futures Rights (non-HMETD) and No. XI.B.2 on The Stock Buyback Issued by the Emitter or Public Corporation.

The revision of the capital increase without HMETD will be larger into 10 percent as from the old regulation of 5 percent.

The stock buyback revised regulation will loosen the maximum value of stock buyback by 20 percent as from 10 percent.

The corporate bond issuance value this year is predicted to exceed IDR30 trillion noting the low BI rate which leads to the low government bond yield become the benchmark of bond coupon. (Bisnis/21)

Friday, October 9, 2009

Pacific Capital Bolsters Equity

Jumat, 09/10/2009 00:00 WIB
Pacific Capital Bolsters Equity

JAKARTA: PT Pacific Capital Investment bolsters its equity from IDR16 billion to IDR26 billion to meet the Capital Market and Financial Institution Supervisory Agency's (Bapepam-LK) regulation.

Director of Pacific Capital Andreas Yasakasih
revealed the equity injection was also injected by the shareholders to market private equity mutual fund.

He explained Bapepam-LK was processing the notification letter of company's equity injection. The company, he continued, was sounding several investors to create similar products that had capital market securities as their assets. The company was optimistic to be able to issue one private equity mutual fund this year.

"For a start, the assets will still be marketable securities, but later we will try to look for projects in the real sector," he told Bisnis recently.

He added the company at the moment was asking for an effective statement for fixed-income mutual fund Pacific Fixed Fund. The mutual fund product is targeted to raise IDR100 billion in investment fund.

Andreas said the company had just launched balanced mutual fund Pacific Balanced Fund, which is the first mutual fund product issued by the company.

"We don't fix too high of a target since we are still monitoring the market condition."

Fund management

According to him, before issuing the mutual fund the company only oversaw a total discretionary fund of IDR30 billion--IDR40 billion.

The amount of fund was raised from several institutional investors, on which the company still relied its income.

Therefore, inserted Andreas, the company still targeted institutional investors as major investor in the mutual fund product. However, he explained the company would also try to join hands with retail investors to expand new investor base.

The additional investors, he exposed, were needed in line with the company's plan to develop its business.

With new products supported by management and information technology required by Bapepam-LK, the company hoped to make its products more active than before.

According to him, the company was still building investors confidence in their mutual fund products by showing good track records. (Bisnis/21)

Moody's Indonesia returns business permit

as published in Bisnis Indonesia daily newspaper

Jumat, 09/10/2009 00:00 WIB
Moody's Indonesia returns business permit

JAKARTA: The Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) since last week has officially received the business permit returned by rating agency PT Moody's Indonesia.

Accounting and Transparency Standard Bureau Chief of Bapepam-LK Etty Retno Wulandari revealed the business permit revocation had been approved of by Head of Bapepam-LK Ahmad Fuad Rahmany through Decision Letter Kep-339/BL/2009. The copy of the letter, dated September 30, was just sent to her yesterday.

"Therefore, their [Moody's Indonesia] obligation to us, which issues business permit, in returning their permit has been settled," Etty told the press yesterday.

She explained in the letter the capital market authority revoked Decision Letter Kep-37/PM/1997 on Business Permit as Securities Rating Agency issued on December 9, 1997.

The business permit was issued to PT Kasnic Duff & Phelps Rating Indonesia, which changed name in January 2007 to Moody's Indonesia after the change in the shareholders.

According to her, the shareholders and the management of the company in the letter had approved of the disbandment and liquidation of the rating agency.

The shutdown of Moody's Indonesia is made following Moody's Corporation's decision to close two other branch offices in Taipei, Taiwan and Indiana, the US, in the wake of the impacts of the global crisis. Moody's Corporation is the holding company of Moody's Investor Services, one of the largest rating agencies in the world.

Moody's Corporation controls a 99% stake in Moody's Indonesia. The holding company is currently restructuring their businesses in the wake of the global crisis.

In Asia Pacific, the company decides to hold their big businesses in Japan, Australia, Hong Kong, and Singapore.

Record by Bisnis showed that Moddy's Indonesia's letter to Bapepam-LK informed that the liquidation process was projected to be completed by the end of last month. However, it turned out the process was time-consuming, so that it could yet be completed so far.

Moody's Indonesia previously planned to return their business permit as rating agency to Bapepam-LK at the end of June 2009.

Based on Moody's' letter 115/Moody's/DIR/VI/200 to Bapepam-LK on June 24, then President Director of Moody's Indonesia Minon Almasyur said the company had first withdrawn 21 national note grades.

The notes consist of bonds and medium-term notes. In addition, the company has withdrawn seven corporation ratings consisting of two already published ratings and five rated in private. (21)

Saturday, October 3, 2009

SUN transactions jumped this week

as published in Bisnis Indonesia daily newspaper
Saturday, 03/10/2009

SUN transactions jumped this week

JAKARTA: The average transaction of government's treasury bonds (surat utang negara/SUN) this week through the level Rp5, 42 trillion per day, above the weekly average since the beginning of the year.

However, the price index of government bonds fell yesterday was caused by profit taking action immediately after the bond price index is the highest level through Thursday.

According to the data receiver Bond Transaction Report which published by Indonesia Stock Exchange (IDX/Bursa Efek Indonesia), all series of SUN's transactions throughout the week that exceeds average monthly trading in June had soared in the level of Rp3, 71 trillion per day.

In the second week in June, the average level of treasury bonds trade reached Rp5,33 trillion from the action of buying and selling in large numbers the last few days.

Since the beginning of the year, average daily trading data in the first half SUN recorded Rp2,9 trillion per day.

The data from Inter Dealer Market Association (IDMA/Perhimpunan Pedagang Surat Utang Negara) showed price declines occurred in almost all the series yesterday. Declining prices caused the price index fell by 14 basis points (bps) from 95.24 on Thursday to 95.1 yesterday.

Decrease in the price index that reflected the decline in the FR0047 series' price decreased by 62 bps from level to level 94.12% 93.50% and boost the yield by 8 bps to 10.81% level. Price and yield conflicting, with the ratio of 100 bps is equal to 1%.

The FR0047 series is the most traded series this Friday that reach level Rp1, 34 trillion, which followed a series of retail bonds (ORI) 003 series Rp1, 2 trillion and FR0039 series of Rp727 billion.

Head of Debt Capital Markets from PT BNI Securities Sukartono assess the action took profit bond market players are still reasonable, given the high prices this week.

"It was unusual, because the market would normally Indonesia fell sharply after rising," he said when contacted by Bisnis last night.

He explained that market participants typically perform the same action when there is news or sentiment that spurred the transaction.

In addition, said Sukartono, market sentiment is still marked by economic improvement and the Bank Indonesia rate may reduced to as low as 6% this year and the potential increase in interest rates are still long.

He believes foreign investors ownership in SUN will continue to increase from 25 September for the position of Rp93, 03 trillion due to persistence of the series of positive sentiment this month.

Director of the Treasury Bonds - Directorate General Debt Management Office Ministry of Finance Bhimantara Widyajala said as of 1 October, the value of foreign ownership increased to SUN for Rp93, 99 trillion, or for 16.57% of total government issued SUN.

"The value was increased compared to Rp760 billion at the end of September position." (21)

Friday, October 2, 2009

Danamon credit rating increased to AA +

as published in Bisnis Indonesia web page

Friday, 02/10/2009 13:25 WIB
Danamon credit rating increased to AA +

by: Irvin Avriano

JAKARTA ( Fitch's rating improve credit ratings of PT Bank Danamon Indonesia Tbk from AA (idn) to AA + action caused the rights issue of about Rp4 trillion in April 2009.

Prospect rankings were determined stable. Director of Fitch's Financial Institutions Group Tan Lai Peng emphasized public offering limited action that contributed to the increase in the consolidated capital adequacy ratio (CAR).

CAR tier 1 at the end of the quarter increased to II/2009 registration of 21.1% from 13.8% at the end of 2008.

"The increase in the national ratings of Bank Danamon reflects the relative soundness of the company's financial profile is supported by a strong base and profitability have helped absorb the impact of the credit costs higher," said Tan Lai Peng in a press release received this morning business.

He explained that raise core capitalization companies which also have to prop the bank against unexpected risks. Potentials can arise from an increase in macroeconomic climate, the increase in the climate is still limited.

Fitch also affirmed ratings of foreign-denominated long-term (issuer default rating / IDR) of Bank Danamon in the BB level, short-term credit ratings of foreign denominated in B, and individual rankings in the level C / D. Level support level ranking in the bottom 3 and the support rating at BB-level.

Temasek Holdings, which is the Singapore government's investment wing, is still set its majority ownership in the bank through the Asia Financial (Indonesia).

According to Fitch, the majority ownership of Temasek and management control of Bank Danamon showed a moderate tendency to support the bank's financial strength. As the sixth largest bank in Indonesia, state support is also possible if the company is experiencing fiscal constraints.

The company also increased following the repayment of capital sub-ordination worth U.S. $ 300 million in March 2009, banks considered able to strengthen the capital position to help finance organic growth in the next three years. (tw)

Bapepam-LK revoked Republic Fund permit

as published in Bisnis Indonesia daily newspaper

Thursday, 24/09/2009 00:00 WIB
Bapepam-LK revoked Republic Fund permit

JAKARTA: The Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) revoked business license of investment manager, PT Republic Fund, last week due to its failure to meet the capital market authority regulation.

In Bapepam-LK official website, the business license with Tax Payer Registration Number (NPWP) 02.341.162.2-054.000 was revoked with the decree of the chief of Bapepam No. Kep-01/BL/MI/ S.5/2009 dated on 10 September 2009.

But the decree does not mention the detail of factors causing the revocation of Republic Fund business license.

Bisnis tried to confirm President Director of Republic Fund Normal Manurung, but he was not available for comment since last week.

Investment Management Bureau Chief of Bapepam-LK Djoko Hendratto also declined to reply the short message service questioning the permit revocation here.

Last month, Republic Fund with three other investment managers, PT Momentum Synergy Asset Management, PT Brahma Capital, and PT Optima Kharya Capital Management, were banned to sell mutual funds product.

The ban was given to the four companies for January-August period as they were deemed violating the regulation No.V.A.1 and Law on Limited Company.

"Most were deemed falling short of compliance with the V.A.1. regulation given that there are some companies lacking of directors or having inactive director," said Djoko at the time.

Law No.40/2007 on Limited Company Chapter VI Article 79 Item (2) stipulates the investment manger (IM) as the public fund manager company should have at least two boards of directors.

The article is endorsed by the regulation of Bapepam-LK regulation No.V.A.1 stipulating the certification of investment manager deputy as one of the requirements.

IM failing to meet both criteria has restriction imposed by Bapepam-LK to perform the function such as selling product.

The lacking of directors is deemed violating the regulation of Bapepam-LK No.V.A.1 on securities company permit with the regulation on limited company so that the authority has restriction on business activities.

"The regulation aims to make the company more prudent for the investor security and comfort," he added. (Bisnis/21)


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