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Tuesday, December 29, 2009

SMS Finance set their bond's coupon at 11.5% -- 13.35%

will be publish in Bisnis Indonesia daily newspaper earlier in this morning

Irvin Avriano (21)
Bisnis Indonesia

SMS Finance set their bond's coupon at 11.5% -- 13.35%

JAKARTA: PT Sinar Mitra Sepadan Finance (SMS Finance) set the company I/2009 coupon bonds for its corporate bonds in 11.5% -- 13.35% tenured 1 year - 3 years.

"Our bonds will be recorded in the stock at the beginning of next year, although we have at the end of the process this year," said President Director SMS Finance Rudyanto Somawihardjo when contacted by Bisnis yesterday.

Based on the information collected earlier, the debt was planned to be listed on January 11, 2010 in Indonesia Stock Exchange (IDX/Bursa Efek Indonesia).

The bonds whom get BBB+ ratings from Fitch Ratings with stable outlook is divided into three series. The A series coupons amounting to Rp85 billion and tenured a year set at 11.5%, B series worth Rp5 billion and tenured 2 years set in the 13.15% level, and C series for Rp 10 billion tenured 3 years set in 13.35% level.

Rudyanto said the size of bonds which the company launched worth Rp100 billion, lower than the maximum amount of Rp200 billion. He said, the result is adjusting to the coupons demands from its investors.

According to him, the maximum amount requested by the requirement from the capital market authority when the registration statement processed. He admitted investors requested a higher coupon because there are many another company issued bond at the same time.

"We remain at a level that we set at the beginning of the process, so the number is related with the investor absorbtion."

In the bonds issuance, the company assisted PT Andalan Artha Advisindo Sekuritas (AAA Securities) as the underwriters.(21)

Monday, December 28, 2009

IHSG the Best-performing Index in Asia Pacific: Fresh Fund-Raising Slumps to IDR38 Trillion

as published in Bisnis Indonesia daily newspaper
Monday, 28/12/2009 00:00 WIB
IHSG the Best-performing Index in Asia Pacific
Fresh Fund-Raising Slumps to IDR38 Trillion

JAKARTA: The Composite Stock Index (IHSG) on Indonesia Stock Exchange (PT Bursa Efek Indonesia/BEI) this year is considered the best-performing index in Asia Pacific.

From January to Wednesday last week, IHSG recorded an increase of 118.13% after it slumped by 58.65% last year due to the financial global crisis.

The Composite Stock Index, which is adjusted in the US dollar, has been ranked among the four best-performing indices in the world, competing with other emerging market stocks, such as Russia, Brazil, and Peru.

Emerging market stock markets in Asia, such as China and India, are not capable of competing with the IHSG’s whopping increase.

Associate Director for Equity Market at PT Reliance Securities Tbk Andy Porman Tambunan explained the surging index showed high short-term investment yield.

"Our market is growing better than China’s and India’s and has more promising short-term profit. However, the short-term profit will be shaky if there is negative sentiment from political realm, such as from the scandal of publicly listed PT Bank Century," he told Bisnis yesterday.

The case, he added, might put pressures on annual window dressing phenomenon. As a result, the IHSG increase to 2,474.88 is not in line with the market expectation, which projects index at 2,700-2,800.

President Director of BEI Ito Warsito viewed such an IHSG increase was normal as the index was corrected by 50.6% last year.

"It is normal. The substantial increase this year is attributable to Indonesia’s strong economic fundamental and publicly listed companies despite global recession.”

If the return growth in Asia Pacific is not calculated in the US dollar, the Indonesian bourse’s return growth ranked second at 82.59%, far below 111.12% recorded by the Shenzen index in China.

The Shenzen index on December 24 hit 1,168.17, soaring from 571.14 earlier this year, while IHSG on December 23 reached 2,474.88, jumping from 1,437.34 on January 5.

"But, we have to understand that the Chinese government intervened with the bourse by injecting funds into the stock market and requires investors to enter the market,” said Andy

Foreign investors only recorded IDR488.5 billion in net-buy last week of IDR8.83 trillion in accumulative transaction during the week.

Market cap
In line with soaring return, the bourse’s market cap jumped 66.58% from IDR1,143.19 trillion on January 5, 2009 to IDR1,904 trillion on December 23. In 2009, 13 new publicly listed companies entered the bourse by listing shares worth IDR3.835 trillion.

"The increase is triggered by the increases in the existing share prices and the new listing. PT Bank BTN shares contribute quite a substantial cap as it is the largest publicly listed bank among eight publicly listed banks.”

He viewed the government and BEI needed to bolster the number of capital market investors, so that more domestic investors could better enjoy the index.

In the meantime, fresh fund-raising in the capital market this year only reached IDR38.04 trillion or only 40.78% of IDR93.26 trillion recorded last year.

Data by the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) showed the low fresh fund-raising was attributable to lower IPO value this year.

PT Bank Tabungan Negara Tbk is the largest IPO company this year at IDR1.88 trillion, while the largest rights issue of IDR3.99 trillion was recorded by PT Bank Danamon Tbk.

The largest bond values are issued by Bank Mandiri (IDR3.5 trillion), PT Bank Ekspor Indonesia (IDR2.5 trillion), BRI (IDR2 trillion), and Indofood (IDR1.61 trillion).

Head of Research at PT Paramitra Alfa Sekuritas Pardomuan Sihombing explained there were fewer corporate actions this year due to the global economic crisis and to the fact that market players were still worried.

"In general, they did corporate actions in the second semester of 2009, which was a little bit too late," he said yesterday. (ags/21)

London Sumatra recorded the top gain: CPO stock price potentially to rise next year

as published in Bisnis Indonesia daily newspaper
Monday, 28/12/2009 00:00 WIB
London Sumatra recorded the top gain
CPO stock price potentially to rise next year

JAKARTA: The stock price of PT PP London Sumatra Plantations Tbk booked the top return in a year reaching 176.92 percent if compared to the seven emitters resulting CPO.

Bloomberg data shows from early year up to December 23, 2009, the LSIP stock price rose 150 points into IDR8,100 and the market capitalization at IDR11.05 trillion from early the year up to Wednesday last week.

The second gainer is PT Gozco Plantations Tbk recording 158.28 percent returns and PT Astra Agro Lestari Tbk 126.53 percent. PT Sampoerna Agro Tbk, PT Tunas Baru Lampung Tbk, and PT SMART Tbk recorded consecutive returns at the level of 114.29 percent, 81.58 percent, and 50 percent consecutively.

The stock price of BW Plantation hitting preliminary the bourse per 27 October 2009 was set at the level of IDR550 or dropped into the level of IDR510 or lower than the stock price on the listing at bourse.

Portfolio Manager of PT Batavia Prosperindo Aset Manajemen Debby Handoyo said the soaring CPO emitter stock price is normal as the commodity is the raw materials for consumption goods manufacture. Goods production will not stop despite the worsening economy.

“It is not simply cooking oil and margarine as food, but also for soap and cosmetics for daily consumption,” she said to Bisnis this week.

The soaring stock price happened from early this year due to the convincing economy recovery following the economy crisis last year. With such credible economy growth, the stock price of the commodity is increasing.

The stock price grew in quarter III/2009 due to the commodity price optimism for next year rise.

“The stock price here is faster than the soaring commodity price noting that market players are confident with the soaring commodity price later.”

Debby said this happened to some emitters stocks, namely London Sumatra, Astra Agro Lestari, and Sampoerna Agro, with almost the same increase.

The potential stock price hike next year is great relating to the threat of El Nino and El Nina climate disturbances.

CPO price will mount with the potential climate disturbance as the production is disrupted amidst the remaining high demand.

However, Debby said the potential here will not as big as the stock price growth this year which is deemed extraordinary.

Research analyst of PT Reliance Securities Tbk Deo Rawendra said from early the year, the stock price is benefited by the commodity price which mounted along with the squeezed oil supply such as soybean oil.

The slight supply is due to the drought striking one of the largest soybean producers, Argentina, early 2009. the CPO price was affected by the soybean oil supply condition as the substitute product.

He also believes CPO price will improve in quarter I/2010 or semester I/2010 due to the potential threat of El Nino and El Nina.

Next year, investor will get more stock option variation as some emitters will execute corporate actions which could boost up the productivity, so as not simply to concentrate on Astra Agro stocks.

Some include London Sumatra that will build plant and Sampoerna Agro plant to acquire other areas.

Bakrie Sumatera stocks are not reflected by the corporate action or CPO emitter stock trend as it reflects more on the stock fluctuation sentiment among the business groups. (21) (redaksi@bisnis.co.id)

Securities company accounting standard to be amended

photograph of Etty Retno Wulandari, Accounting Standards and Disclusure Bureau Chief of Bapepam-LK

as published in Bisnis Indonesia daily newspaper
Monday, 28/12/2009 00:00 WIB
Securities company accounting standard to be amended

JAKARTA: Capital Market and Finance Institution Supervisory Agency (Bapepam-LK) plans to change the existing securities company accounting standards (pedoman akuntansi perusahaan efek/PAPE). The capital market authority intends to issue the new standard by 2011.

Accounting Standard and Disclosure Bureau Chief of Bapepam-LK Etty Retno Wulandari said the PAPE so far has been deemed the product of IDX and has never been renewed since 1998.

“We want to replace it with the new one and will be the product of Bapepam-LK instead of IDX [Indonesian Stock Exhange/Bursa Efek Indonesia] so as to have stronger legal basis,” she said to Bisnis last week.

Etty who also include in the Finance Accounting Standard Boards members said the PAPE replacement is done also for replacing accounting basis used by securities companies thus far, namely the transparence and accounting standard statement (pernyataan standar akuntansi keuangan/PSAK) No.42 on Securities Company Accounting.

PSAK 42 has just been revoked by the Finance Accounting Standard Boards this week with some other PSAKs.

The PAPE has been drafted with initial discussion with IDX management. The issuance still waits for the issuance of some statement of accounting standard and transparence which will become the reference of PAPE formation.

“Some PSAK will serve as the PAPE basis and the publication is scheduled next year.”

One of the points to be included in the new PAPE is the procedure of net adjusted working capital (modal kerja bersih disesuaikan/MKBD) calculation. PAPE also waits for the IDX approval of regulation for MKBD.

Formerly the capital market authority expected the IDX and Bapepam-LK regulations on MKBD could be issued this year but none has been issued so far .

Besides PSAK 42, the Finance Accounting Standard Boards chairperson Rosita Uli Sinaga added the institution also revoked PSAK 49 of the Mutual Fund Accounting last week.

Bapepam-LK predicted the revocation is done jointly with the issuance of capital market authority regulation on the mutual fund accounting. So far the new regulation No. VIII.G.10 on procedure of report presentation of mutual fund in the forms of collective investment contract has not been deliberated.

So there is legal gap particularly stipulating capital market investment product accounting record.

The capital market authority does not worry about the absence of special regulation on mutual fund accounting and finance statement of investment manager as industry players could use the former regulations. It has been written in the PSAK 1 that just have been launched by the Dewan Standar Akuntansi Keuangan IAI.

In addition to PSAK 1, Rosita said IAI also deliberated nine other PSAK with full enactment by 2011.

This is done to adjust and converge with the international financial reporting standards (IFRS). Convergence of IFRS will be fully covered by 2012. (21)

Sunday, December 27, 2009

Children of Men (2006): when the children will be very important to the world. And to the life of mankind.

Children of Men (2006): when the children will be very important to the world. And to the life of mankind.

Starring: Clive Owen, Julianne Moore, Michael Caine, Clare-Hope Ashitey, Chiwetel Ejiofor.
Justify Full
Imagine when there is no children in the world, when women can't ovulate, and when there is desperation of mother wannabe to have a child in their womb.

There is nothing to believed, by the poeople, will makes the peace happen again in the world, through the devastation that thought will never end.

The movie itself makes the audience feel the importance of having a child, to be fertile, despite of the abortion and self destructing behavior to the planet.

The setting held in England, 2027, when the last child died in 18 years old, that makes nobody younger than 18. Epidemic spread in 2007 and kills all children, makes no school held. Desperation and chaotic economy happen in the entire globe.

Other nations, especially Eastern Europe and African, brings wave of immigrants to England, to deserve a better life. But the English government resist it, caused by the murder of the last child that have been turned into a celebrity, Baby Diego.

The bombings and mugging happen eventually, and people starts to rioting and makes the government more repressive. A usual London citizen, Theo Faron (Clive Owen), escaped from a bombing, and captured by the peace activists, named The Fishes.

He asked by Julianne (Julianne Moore), his former wife that turned to be The Fishes leader, to help the group secure a transit paper because he is connected with his family, a government officer. Suddenly, their convoy attacked and Julianne been killed.

The problem peaked when there is a woman, Kee (Clare-Hope Ashitey), carries a children in her womb. Julianne said The Fishes will transfered her to a project, Human Project, near Portugal. The group of scientist are trying to restoring human fertility. The transfer will take a vessel, called the Tomorrow.

But the Fishes had another agenda related with the unborn child that Kee had, especially the new leader, Luke (Chiwetel Ejiofor). Theo asked help from his old mate, the former activist and hippies Jesper (Michael Caine), who lived in the forest and lived by selling self-grow weed, to carry them to escaped from England.

::watched from TV, a few weeks ago.

Saturday, December 26, 2009

Mitra Resources Potential to Book Loss

as published in Bisnis Indonesia daily newspaper
Thursday, 24/12/2009 00:00 WIB
Mitra Resources Potential to Book Loss

JAKARTA: PT Mitra International Resources Tbk (d/h Mitra Rajasa) is potential to book up to IDR800 billion in losses due to interest burden they have to bear following the acquisition of PT Apexindo Pratama Duta.

"The net loss is attributable to IDR640 billion in interest burden that we have to pay following our acquisition of Apexindo," said Director of Mitra Resources Inu Dewanto Koentjaraningrat yesterday.

In addition, the company is also required to pay IDR124 billion in Ancora convertible bond coupon and IDR250 billion in amortization burden. Meanwhile, the management estimates its revenues for 2009 at IDR2.4 trillion.

As of September 2009, the company posted IDR641.06 billion in losses, slumping from a profit of IDR64.15 billion booked during the same period last year.

The company allocates US$143 million in capital expenditure next year, most of which will be used to revitalize the company's ships and the rest will go to Apexindo and other investments.

The company earlier this year purchased shares in a safety consulting, inspection, and training service company, PT Team Safety Consultant Indonesia.

In February, Mitra Resources also bought one unit of FPSO ship through its subsidiary, Sabre Offshore Marine Pte Ltd.

The ship has an oil production capacity of 10,000 barrels of oil per day (bopd) and 10 mmscfd of gas per day as well as a storage capacity of 53,000 bbl. (Bisnis/21)

Danareksa dominates bond issuance


as published in Bisnis Indonesia daily newspaper
Thursday, 24/12/2009 00:00 WIB
Danareksa dominates bond issuance

JAKARTA: PT Danareksa Sekuritas siap dominated bond issuance underwriting market with gross underwriting composition of 60 percent the same as this year underwriting.

Director of Investment Banking of Danareksa Sekuritas Marciano Herman said the accumulation of securities companies underwriting now still leads among the other securities companies.

Bloomberg data this week shows the securities company has bond net underwriting of 25 percent with distribution value of IDR7.4 trillion. The highest position is followed by PT Bahana Securities with IDR4.15 trillion and market shares of 14 percent and PT Mandiri Sekuritas IDR3.9 trillion and market shares of 13.2 percent.

Data of IDX early this week showed the gross underwriting of Danareksa Sekuritas is IDR19.48 trillion or 66.23 percent of the total bond issuance of IDR29.41 trillion.

Next year, the company aims not to get higher composition but rather take domination over underwriting markets.

"The other has declined its composition and we are still at 40 percent, so it doesn't matter as it remains predominant," he said to Bisnis this week.

Marciano said now the company is also optimistic to the bond issuance value next year will be the same as this year issuance value worth IDR29.41 trillion.

But he refuted to comment on the underwriting service cost drop prediction dealing with the many corporate bond issuances and SUN next year.

Finance Ministry data shows the SUN gross issuance value next year will stand at IDR175.13 trillion or rose from IDR144 trillion this year.

Economist of PT Bank Danamon Indonesia Tbk Helmi Arman said the corporate bond issuance next year will not affect the number of SUN gross issuance set by the government.

"SUN and corporate bonds have different investors type, government bond investors is longer and so is the investor with their investment horizon."

There will not be any crowding out effect which will influence the coupon value and bond issuance cost significantly for both bond instruments.

VP & Head of Debt Capital Markets of PT Trimegah Securities Tbk Agus Salim said the current bond condition is liquid after the negative issue on the bond default suffered by Dubai World last month. (Bisnis/21)

Metropolitan IPO scheduled in October 2010

as published in Bisnis Indonesia daily newspaper
Wednesday, 23/12/2009 00:00 WIB
Metropolitan IPO scheduled in October 2010


JAKARTA: PT Metropolitan Land plans to have IPO worth IDR500 billion October next year or delayed from target of early June 2010 as the management still waits for conducive market.

"The decreasing condition of the last (capital market) has made us concern about the condition and the prediction is about October," said President Director of Metropolitan Land Nanda Widya yesterday.

Metropolitan Land is one of the property firms joining in the Ciputra Group.

Now the Ciputra Group has five go public firms, namely Ciputra Development, Ciputra Property, Ciputra Surya, Jaya Real Property, and Metropolitan Kencana.

"It is less than IDR1 trillion. We estimated so far it still remains at IDR500 billion."

As to Nanda, the company plans to allocate budget collected from the IPO to finance some new projects targeted by the company. But the company could not announce it yet due to the absence certainty.

There were three projects to develop by Metropolitan Land from IPO generated cash. One of them is medium lower classes housing in Cibitung. To materialize it, Metropolitan has acquired 114 hectare plots of land in the region to develop residence with IDR50 million in price.

Besides, Metropolitan also has plan to establish five apartment tower and shopping center.

Nanda said the company has either assigned state firm as the underwriter of the IPO.

An executive added the company appointed PT Danareksa Sekuritas in IPO implementation. They said the assignment has been done for a long time. "It seems there is no beauty contest in the underwriter appointment done by Metropolitan Land."

Director of Danareksa Sekuritas Marciano Herman was not available for comment yesterday.

Metropolitan Land has developed five non vertical residence projects such as Menteng Metropolitan, Puri Metropolitan, Permata Metropolitan, Taman Metropolitan, and Taman Cileungsi. (Bisnis/21)

Tuesday, December 22, 2009

Medco to issue US$100 million bonds


as published in Bisnis Indonesia daily newspaper
Tuesday, 22/12/2009 00:00 WIB
Medco to issue US$100 million bonds

JAKARTA: PT Medco Energi Internasional Tbk plans to issue medium term notes (MTN) worth US$100 million early next year to refinance corporate debt, investment, and working capital.

The plan is unveiled by PT Pemeringkat Efek Indonesia (Pefindo) yesterday. The rating company here gives AA- level for the MTN issuance scheme.

The same rating was either given to the A series II/2009 bonds worth IDR513.5 billion and the B series worth IDR986.5 billion maturing in 2012 and 2014 respectively.

Analyst of Pefindo Ronald Hertanto and Vonny Widjaja said the rating reflected the relatively competitive oil and gas production cost and liquidity above the average.

"However the rating was limited by the finance performance plummet, production decline from some fields with limited reserves, suspension of some main projects, and more aggressive corporate debt due to the mounting spending of capital and uncertain asset divestment plan," they said.

The negative prospect rating is given to anticipate the worsening corporate finance performance.

"This includes the negative impact of the oil and gas price fluctuation, oil and gas production plummet, and some major projects suspension," he said.

Pefindo considered the quite poor performance here could hardly have compensation from the corporate plan of asset divestment.

The progress is potentially to weaken the corporate financial performance in the medium term.

On December 3, 2009, Finance Director of Medco Darwin Cyril Noerhadi said the capital expenditure 2010 stood at US$150 million or the same as that of in 2009 and 2008.

The amount here excludes the expansion of non organic such as acquisition.

Medco management also studies the use of stocks in portfolio of 11.72 percent through direct sales, collateral, or convertible bond issuance.

Cyril added the company now has 11.72 percent portfolio stocks.

The number of stocks could exceed 10 percent as it follows the capital market authority policy calling the public company to have stock buyback up to 20 percent to reduce the global finance crisis impact in October 2008.

"As to the Bapepam-LK regulation, we are allowed to keep portfolio stocks for three years. It means it has one year left (up to 2010)," he said yesterday.

The management has been exploring the convertible bonds issuance option, direct sales, or collateral for the corporate loans in the future.

Based on the data, the total shares issued by Medco are 3.33 billion.

Assuming 11.72 percent shares of the total shares participated by Medco of 390.56 million and the stock market yesterday was IDR2,500 per share. Thus the Panigoro's oil and gas firm here could tap up to IDR976.40 billion fund from the sales of treasury stocks. (Bisnis/pul/21)

Capex of Berlian Tanker at US$140 million

as published in Bisnis Indonesia daily newspaper
Tuesday, 22/12/2009 00:00 WIB
Capex of Berlian Tanker at US$140 million

JAKARTA: PT Berlian Laju Tanker Tbk set the capital expenditure next year of US$140 million covered from internal cash and bank loan.

"Most of the funds will be used for procurement of four to five corporate ships which will be executed in semester II/2010 on their delivery," said Finance Director of Berlian Tanker Kevin Wong in public expose yesterday.

But he could not provide details on the composition or bank name providing loan facility due to the ongoing process. Kevin could barely explain the finance performance target last year or next year.

Besides, he said the state budget here excluded the rights issue scheme in relation with the acquisition of 100 percent scheme of Camillo Eitzen & Co ASA (Ceco) stocks.

Ceco is the stock emitter in the Norwegian bourse with four subsidiary firms and 94 ships with 1.46 million tons of deadweight tonnage (DWT). The four subsidiary firms include Eitzen Chemical, Eitzen Gas, Eitzen Bulk, and Eitzen Maritime Services.

Eitzen Chemical is the top three largest owner of chemical tanker in the world with 82 vessels with 1.66 DWT capacities. Berlian Tanker is the top four largest firm with most chemical tankers in the world.

Kevin said the company still plans to have rights issue worth US$200 million and US$128 million and avoid rights issue scheme which is deemed longer and barely meet the expectation of Ceco.

The company decided to have rights issue different from rights issue due to the rejected proposal of the mandatory exchangeable bond (MEB) by Bapepam-LK.

The company also failed to be interested in taking over one of Ceco subsidiary firms, Eitzen Maritime Service, as it was not like the corporate strategy.

He argued the takeover deals with the huge debt of Eitzen Maritime Service.

Without participation of Eitzen Maritime Service in the takeover scheme, the company cut down the total value of acquisition of formerly US$369 million into US$328 328 million. The amount is reflected from Ceco shares formerly worth NOK 23.3 (Norwegian crone) into NOK 18.

Investor Relations of Berlian Tanker Peter Chayson said the company maintains the capitalization rise without (HMETD/secondary offering/no preemptive offering) as one of the options. (Bisnis/21)

Retail sharia bond issuance worth at IDR3 trillion: Finance Minister to issue forward lease ijarah


as published in Bisnis Indonesia daily newspaper
Tuesday, 22/12/2009 00:00 WIB

Retail sharia bond issuance worth at IDR3 trillion
Finance Minister to issue forward lease ijarah

JAKARTA: The government set the indicative target of retail government sharia bonds (SBSN/sukuk) worth IDR3 trillion next year.

The total asset value for the SBSN underlying asset in the issuance is worth IDR20.3 trillion.

Debt Management Director General Rahmat Waluyanto said the asset for the issuance basis asset is the state property in the form of land and building owned by the ministry and institutions.

"The government could issue a maximum of a total asset of the basis asset which could be in the form of retail sharia bonds, corporate sharia bond, and global sharia bond," he said to press yesterday.

The three years tenured sharia bond will be sold by January and to be issued February 10 next year with minimum purchase of IDR5 million with unlimited top limit. The sharia bond instrument coupon will be set by January 21.

Some capital market players attending the meeting of retail SBSN sales commitment said the indicative target addressed by 18 sales agents stood at IDR4.3 trillion. The amount is said to have been garnered and agreed by Debt Management directorate general.

Sharia financing director Dahlan Siamat when asked about the targeted amount said he did not blame the different indicative issuance target of the two.

"Both are correct, and the IDR3 trillion is form the government. If from the seller, it is their combined agreement. The issuance could be upsized. Basically, the government is more conservative."

One of the new instrument to be issued is forward lease.

To materialize, the government should issue government regulation as the legal basis. "The forward lease ijarah issuance schedule is not fixed yet due to the ongoing draft of government regulation."

Principally, in the government regulation draft (RPP), it includes ministry or institutional projects and state enterprises funded by sharia bonds.

"The regulation on project financing has been agreed by the National Sharia Council. We have proposed for having the fatwa for immediate deliberation. It will be so-called forward lease ijarah," he said.

Rahmat said the government planned to issue government promissory notes (SBN) with gross value of IDR175.13 trillion next year. The issuance scheme is higher than the issuance this year of IDR144 trillion.

"The Finance Ministry is optimistic the issuance of SBN worth IDR175.13 trillion will be optimally absorbed by the market."

The government has either studied for BI recapitulation bond conversion. The bond is issued in relation with the central bank assistance to some banks with financial constraints in 1998 (SU-002/MK/ 1998, SU-004/MK/1998, and SU-007/MK/2007).

Meanwhile, the foreign possession position in the government bond (SUN) per December 15 stood at IDR108.25 trillion or rose from IDR107.73 trillion in previous day.

The overseas portion at SUN was 18.6 percent of the total government bond issuance worth IDR581.76 trillion. (Bisnis/21/agi)

Monday, December 21, 2009

Excelcomindo's credit rating raised to BB

as published in Bisnis Indonesia website
Monday, 21/12/2009 12:13 WIB
Excelcomindo's credit rating raised to BB
Irvin Avriano

JAKARTA (bisnis.com): Fitch Ratings increased the long-term local and foreign currency credit ratings PT Excelcomindo Pratama Tbk from level from BB- to BB levels after completion of the rights issue process (PUT/limited public bidding). Ranking outlook is determined on a stable level.

Rights issue managed to raise funds for Rp2,8 trillion in the ratio 1:5 times. Increased ratings reflect the strong relationship between the company and its majority shareholder, Indocel Holdings Sdn Bhd.

Indocel Holdings is a subsidiary Axiata Group Bhd, which 100% shares of the company's stock owned by the Malaysian listed company. The increase of the ratings was also in accordance with Fitch's methodology related to ranking parent relations and subsidiary businesses.

"Parent participation in a rights offering business Excelcomindo by Indocel which owned 100% by Axiata, and commitment Axiata as the standby purchaser in the corporation's action, indicate increased support for the consistent factor in the ranking," said Fitch Senior Director in Telecommunications, Media, and Technology Team for Asia Pacific Vicky Melbourne in a press release that published today.

Excelcomindo is the largest subsidiary nondomestic and the main contributor in Axiata's business income. Contributions are reflected from the support of 31% EBITDA during semester I/2009 which also showed an important and strategic position of Excelcomindo in Axiata.

Considerable support was also planning to be realized through changes in the issuer's name into PT XL Axiata Tbk in the next 2 months that are still waiting for approval from the Ministry of Justice and Human Rights.

Stable ranking outlook indicates a lower stable level of net debt to funds from the results indicate 'rights issue' will be used to pay off some companies' debt. (tw)

3 stocks have above 100 percent returns: Five emitters stocks remain under initial price

as published in Bisnis Indonesia daily newspaper
Monday, 21/12/2009 00:00 WIB
3 stocks have above 100 percent returns
Five emitters stocks remain under initial price

JAKARTA: As from 12 new firm stocks listed in the bourse this year, three recorded above 100 percent returns and the other five have not contributed any profit yet.

Bloomberg data shows early 2009 up to the closing in Thursday last week, stock of PT Dian Swastatika Sentosa Tbk, Sinar Mas Group business unit with 59.9 percent owned by PT Sinar Mas Tunggal, has recorded 270 percent profits.

Research head of PT Paramitra Alfa Sekuritas Pardomuan Sihombing said the sharp stock increase from some emitters with less stock capitalization was due to the existing investors taking advantage of the minimum liquidity here.

Dian Swastatika is deemed corporation focusing on telecommunication tower and power plant construction. The emitter has market capitalization worth at IDR4.27 trillion. On the IPO, Dian Swastatika was helped by PT OSK Nusadana Securities Indonesia as underwriter.

The second post is stocks owned by PT Inovisi Infracom Tbk, a telecommunication firm recording 268 percent returns. It is followed by PT Bumi Citra Permai that has just been listed in the bourse December 10, 2009, with 131.82 percent return.

The stock price of Inovisi Infracom now has stood at IDR460 or sharply jumped if compared to the price on the stock listing of IDR125 on July 2. The recorded emitter stock capitalization was IDR423.2 billion. "OF course, with both capitals, the small emitter stock exchange become more lucrative to daily stock trader," he said yesterday.

Five other emitters stocks with IPO this year on last Thursday remained lower than the IPO pricing.

The largest stock price drop happened to coal mining firm, PT Garda Tujuh Buana Tbk. Underwritten by PT Bahana Securities on the IPO, the emitter recorded 28.36 percent plummet.

Stock of PT Katarina Utama Tbk, telecommunication and trade service sector firm, recorded the price drop of 32.5 percent. The stock of tin plate producer of PT Pelat Timah Nusantara Tbk (Latinusa) up to Thursday last week remained at 10.77 percent under the initial par value of IDR325.

The stocks of PT Trikomsel Oke Tbk and CPO plantation PT BW Plantation Tbk still provided negative returns of 6.67 percent and 5.45 percent. (Bisnis/21)

Saturday, December 19, 2009

Sarana Multigriya bond's coupon tapped at 9.5%: Three years tenure bond not taken


as published in Bisnis Indonesia daily newspaper
Saturday, 19/12/2009 00:00 WIB

Sarana Multigriya bond's coupon tapped at 9.5%
Three years tenure bond not taken

JAKARTA: PT Sarana Multigriya Finansial (SMF) applied the II/2009 bond coupon with one year tenure is 9.5 percent with IDR400 billion demand or higher than the former target of IDR350 billion.

“The oversubscribed demand is deemed above IDR400 billion. But the emitter and underwriter do not intend to increase the issuance value as it aims to get the lower coupon and benefiting all parties,” said one of resources to Bisnis yesterday.

Other resource said the company does not take at all the three years tenured bonds due to the investors’ requested coupon is above 11 percent, meanwhile the company only prefers the under 10 percent coupon.

In the prospectus published by the company, SMF plans to use 90 percent of the fund tapped from the bond issuance to channel loan in the form of refinancing program. The rest is 10 percent is used by SMF to buy asset-backed securities (efek beragun aset/EBA).

Corporate Secretary of SMF Eko Ratrianto was not available for comment yesterday.

Director of PT Bahana Securities Andi Sidharta as the underwriter was neither available for comment yesterday. In the issuance, PT Bank Permata Tbk acted as the bond investors trusteeship board.

Director of SMF Sutomo conceded the coupon of that level. He said the proceeds raked up from the bond issuance will compensate the fund spent by SMF for Housing Loan.

The fund is meant to compensate the purchase of two series of Danareksa SMF-BTN EBA executed on the issuance of derivative securities. In the EBA issuance, SMF could become standby buyer which will buy the unabsorbed derivative securities by investors.

In total, the company has disbursed financing through capital market worth IDR1.43 trillion. The value is divided into two series of EBA worth IDR502 billion, and credit worth IDR500 billion to sharia unit of BTN worth IDR200 billion, and BNI Syariah worth IDR200 billion.

Besides, the other housing loan channeling has either been done through Bank DKI worth IDR30 billion and to three multifinance companies. Sutomo meant the companies here include PT Bhakti Finance, PT Ciptadana Multifinance, and PT Finansia Multifinance.

The value of credit channeling here exceeds the earlier target of IDR940 billion until this yearend.

President Director of SMF Erica Soeroto once said the company intended to have standardized sharia housing loan document which had been prepared this year and would be finalized in 2010. he said the company planned to disburse financing worth IDR450 billion next year.

“But, it should wait for the shareholders approval,” he said in the public expose of bond issuance II/2009.

The company has studied some investment managers to market mutual fund using asset-backed securities instruments issued twice by the company along this year.

The amount of derivative securities issuance here stood at IDR502 billion but mostly absorbed by the SMF as the standby buyer.

Later the retail investors could enjoy protected mutual funds which will be formed using asset-backed securities (EBA) particularly EBA DSMF-BTN 02/2009 recently issued by the company. “The coupon (of EBA) is still lucrative and better enjoyed by mutual fund investors either.” (21)

Investment since early times


as published in Bisnis Indonesia weekend edition
Thursday, 17 Desember 2009

Investment since early times
It is never too late to buy mutual funds. This message seemed to convey to those investment managers who are still hesitant to buy these investment products at the time felt he was old.
Mutual funds are a capital market investment instruments that have long-term investment horizon. But age does not limit you to be able to give it to your beloved baby. The move was also necessary to educate the child in order to realize the investment early on.

President Director of PT Manulife Aset Manajemen Indonesia Denny Rizal Thaher rate doubts that often happens like that it can be overcome with a single step, 'start investing from now'.

The delay time to invest, he said, can be very detrimental because it will takes time. Time wasted in vain that actually contain the opportunity that can be used to invest.

Mutual funds should be understood that a variety of forms, from open ended type, or structured fund (close ended). Open means that investors can enter into the form of investment at any time, which can include equity funds, mixed funds, fixed income funds, ETFs (exchange traded funds), index funds, and the money market funds.

Mutual funds are structured in this country are protected mutual funds, based on fixed income instruments but locked until maturity. Mutual funds that protect the initial investment value investors to time the basic asset maturity investments.

He gave an example an investor who invests on a regular basis for Rp100.000 per month from the age of 18 years for 15 years and quit to invest their capital in the age of 33 years. This person does not increase the amount of investment after 33 years of age, but he will have money Rp1, 2 billion at the age of 60 years.

Such types of investors, continued Denny, far more profitable than other types of investors that are too long to decide to invest.

Examples of other types is a father who postpone new investments and investing at the age of 33 years. He continues to invest for 27 years until age 60 years with a total investment Rp100.000 per month, equal to the first type, only to have the investment savings of Rp243 million in 60 years of age.

That, he said, is possible because every year your mutual fund investments have a positive growth, albeit in a short period of time has a sharp fluctuations.

Although the first investments of investors example less, 15 years old, running time makes the investment value grows larger than the other samples. When an ongoing, said Denny, have more value for every mutual fund investor invested.

"Especially if there are facilities capable of making investors started investing early, way easier berinvestasinya again."

He tells the old man than to start investing immediately, must start investing techniques to educate the baby.

According to him, a small investment like he exampled that can be applied through the program "QQ accounts" that provided by Manulife Aset Manajemen. The program is designed for investors and the child was given an opportunity for parents to invest in two names, names of parents 'QQ' son's name.

Thus, the invested funds would be owned by both people. Name the new parents will 'gone' and the account of the mutual fund would be shifted entirely to the child when she was 21 years old have been fulfilled.

Early Education
Head of Wealth Management Royal Bank of Scotland Group Plc, Indonesia branch, Steven Suryana also said education should be done early. Companies are also always trying to educate its customers market conditions for investors since the beginning.

"The point we want to demonstrate to customers the ideal way to invest, so that banks do not only recommend, but also to function as an educator of investors."

He hopes to educate companies that are transmitted by various events, the more people who understand and are interested to invest in capital markets, particularly through mutual funds.

President Director of PT Fortis Investments Eko Priyo Pratomo reminded there are two benefits that can be learned from a mutual fund investing from an early age for children.

"First, there is a need to make one investment fund set aside at the beginning, because at the end of the month each person usually has no funds left."

He suggested that the allowance for funds to save and invest at the beginning when the money is still intact, not the end of the month. That, he said, is to prevent running out of funds at the end of the month which is the tendency of each person.

Uses the second, most important, continued Eko, namely investment habituation also most important in order to educate children to start investing early.

He describes, when the child will appear adolescence curiosity about the use of spare money. To answer that, Eko said, parents need to teach the importance of investing in addition to saving money in the bank.

Then, the child must be asked about a mutual fund where the money invested, and about the capital markets. Surely it would make the parents called to explain to her child further. (Redaksi@bisnis.co.id)

Irvin Avriano
a Bisnis Indonesia's Contributor

Astra Sedaya selected 4 underwriters IDR1 trillion bond issued with 1-4 years tenure


as published in Bisnis Indonesia daily newspaper
Thursday, 17/12/2009 00:00 WIB

Astra Sedaya selected 4 underwriters
IDR1 trillion bond issued with 1-4 years tenure

JAKARTA: PT Astra Sedaya Finance appointed four securities companies as the underwriter of IDR1 trillion bond issuance.

Bisnis resource said the appointed securities here include PT HSBC Securities Indonesia, PT CIMB Securities Indonesia, PT Mandiri Sekuritas, and PT Indo Premier Securities.

"The tenures of the bonds varied ranging from 1 up to 4 years. The number of bonds of each tenure will be defined on the basis of investors interest as seen on the book building period," he said yesterday.

Bond issuance here completes the IDR800 billion medium terms notes (MTN) in September. The MTN coupon is set at the level of 10.75 percent.

Now, for MTN issuance worth IDR800 billion, Astra Sedaya has assigned HSBC Securities and OSK Nusadana as the underwriter.

Formerly, Astra Sedaya in quarter I/2009 had issued IDR900 billion bonds increasing from the initial plan o fIDR600 billion.

Astra Sedaya plans to submit the bond filing to Bapepam-LK next week. the bond will be issued by February 2010.

"The underwriting is led by PT Indo Premier Securities," said a market player yesterday.

In addition to Indo Premier, bond emitter has used service of PT Mandiri Sekuritas, PT CIMB Securities Indonesia, and PT HSBC Securities Indonesia.

Last night Bisnis called for comment from Director of Mandiri Sekuritas Iman Rahman and he claimed for not having any information about the appointment of underwriter from Astra Sedaya.

"I have not seen any appointment letter in my desk."

Data of PT Kustodian Sentral Efek Indonesia last week showed Astra Sedaya issued medium term notes (MTN) II/2009 of B and C series worth IDR200 and IDR300 billion respectively.

The multifinance sector bond issuance here is predicted to boost up the total bond issuance next year. Besides, this might exceed the issuance this year with an assumption of IDR32 trillion.

The total bonds value maturing next year stands at IDr10.94 trillion, of which some DIR4.5 trillion maturity is from the multifinance sector at the same period.

Some emitters with due date bonds next year include Astra Sedaya Finance worth IDR1.15 trillion, Federal International Finance IDR855 million, Apexindo Pratama Duta IDR750 billion, BTN IDR billion, Indosat IDR640 billion, Jasa Marga IDR650 billion. (Bisnis/mmh/21)

Argha Industry prepares US$42 million

photo from: http://jobsengineer.kuchika.com/wp-content/uploads/2009/10/argha.jpg

as published in Bisnis Indonesia daily newspaper
Thursday, 17/12/2009 00:00 WIB

Argha Industry prepares US$42 million

JAKARTA: PT Argha Karya Prima Industry Tbk allocated US$42 million capital expenditure next year to purchase machinery.

The machinery is meant to improve the capacity of plastic raw materials flexible biaxial oriented polypropylene (BOPP).

Finance Director of Argha Industry Jimmy Tjahjanto said the machinery will improve the production capacity of BOPP by 32,000 tons per year as from 35,000 tons into 67,000 tons per year.

The US$26 million fund is generated from export credit provided by Bayerische Hypo und Vereinsbank of Germany. The machinery purchased from Germany manufacturer, Bruckner, helps ease the company to get low lending rate.

"The other US$8 million is from our old partners, Bank CIMB Niaga and Bank Mega, and internal cash worth US$8 million," he said yesterday.

Both private banks have given the company loan for working capital worth US$16 million every year. The option loan from bank is due to the lower lending rate with long terms of payment.

The 6th machinery will be planted at the plant areas in Citeureup, Bogor.

The construction here is predicted to kick off next week and to finalize operational by 2011.

In addition to BOPP, the company also produces polyester (biaxially oriented polyethylene terephalate/BOPET) and cast polypropylene (CPP). The growing production capacity is estimated to increase sales by 30-40 percent from that of earned this year.

Plant intensification has made the total production capacity including the subsidiary firm will increase from 67,000 per year into 99,000 tons per annum.

Argha Industry has 70 percent shares of Stenta Films Sdn Bhd in Malaysia and has BOPP production of 17,000 tons per year. The other stocks are possessed by local business owners. The company also has office in Hong Kong, namely International Resources Ltd.

Now there are 53 percent of the total exported production goods and the rest is for local industry with major market of Asia Pacific. The market shares of BOPP production domestically have 25 percent and expectedly to grow by 35-40 percent.

Jimmy said after capacity rise, the local sales composition will grow by 60 percent and the rest is imported abrod.

Up to yearend, the company estimated the sales will hit IDR1.3 trillion, or rose from IDR1.06 billion of the quarter III/2009 scheme. (Bisnis/21)

Debt Need for 2010 Reaches IDR234 Trillion: Global Islamic Bond Next Year Targeted at US$750 Million


as published in Bisnis Indonesia daily newspaper
Wednesday, 16/12/2009 00:00 WIB

Debt need for 2010 reaches IDR234 trillion
Global islamic bond (sukuk) next year targeted at US$750 million

JAKARTA: The government plants to raise IDR233.66 trillion in financing next year through T-bond issuance and direct loans.

Rahmat Waluyanto, Director General of Debt Management at the Department of Finance, explained of IDR236.13 trillion in total financing for 2010, only IDR2.46 trillion would be non-debt financing, while the rest would come from gross T-bond issuance (IDR175.06 trillion), program loans (IDR24.44 trillion), project loans (IDR33.13 trillion), and domestic financing from national banks (IDR1 trillion.

"So, IDR233 is the total gross financing from T-notes and loan withdrawal," he explained after Investor Gathering yesterday.

Data by the Directorate General of Debt Management recorded the total financing need was based on the deficit of the 2010 State Budget, which is fixed at IDR98 trillion or 1.6% of GDP, on IDR129.47 trillion in due debt, and IDR8.64 trillion in loan forward payment plan.

The total due debt covers IDR58.84 trillion in foreign loans and IDR70.63 trillion in domestic bonds.

According to Rahmat, the government would optimize domestic financing to realize all new debt plants.

"The more we have rupiah-denominated debts, the better since we will be able to avoid loss on foreign exchange mismatch. We will try to have rupiah debts representing more than 50% of the total debt from the current 40%."

Global Islamic bond (sukuk)
In the meantime, Director of Islamic Financing at the Department of Finance Dahlan Siamat explained the indicative target for Indonesia's US dollar-denominated issue was fixed at US$750 million for June next year.

"It is still indicative and can be increased as long as demand is high and the condition sees it fit."

Previously, the government issued US$650 million in Islamic bonds in April of a total subscription of US$4.7 billion. HSBC Holdings Plc and Standard Chartered Plc help the government in issuing the bond.

In his presentation to investors yesterday, Dahlan explained the state currently had a total underlying asset of IDR25 trillion.

He added the government would also issue Islamic financing instrument next year, namely project-based Islamic bond, once it pocketed a religious decree from the National Islamic Council (DSN).

The government also plans to issue retail Islamic bond (sukuk) in early January.

Chief Economist of PT Mandiri Sekuritas Destry Damayanti suggested the government reschedule debts that would be due next year to alleviate the 2010 State Budget's burden. (Bisnis/agi/aca/21)

Bapepam-LK not submitted yet margin proposal

as published in Bisnis Indonesia daily newspaper
Wednesday, 16/12/2009 00:00 WIB

Bapepam-LK not submitted yet margin proposal

JAKARTA: Capital Market and Finance Institution Supervisory Agency (Bapepam-LK) could not propose the recommendation of the Indonesia Securities Companies Association (Asosiasi Perusahaan Efek Indonesia/APEI) in the margin transaction regulation of IDX early next year.

The regulation will be revised using some inputs from market players. The would-be revised regulation is on bourse No. II-H on requirement and securities trade in margin transaction and short selling transaction and No. III-I on margin and short selling membership.

"We have not known yet the suspension until when, but the most likelihood is that it is impossibly enacted by January," said Securities Institution and Transaction Bureau Chief of Bapepam-LK Nurhaida to press this week.

He said as long as the proposal is not submitted yet in the IDX regulation revision , the bourse regulation No. II-H recently deliberated mid this year will be effectively enacted.

APEI recommended all stocks listed in the LQ45 index could become stocks with margin transaction facility. The recommendation also urged Bapepam regulation concept not to refer to individual stocks given that the margin is more easily given to some basket stocks.

IDX and market players requested for permit to Bapepam noting that the regulation refers to the regulation of the capital market authority No.V.D.6 on the securities transaction settlement cost by the securities company to the customer.

The enactment of the revised regulation was formerly designed for early next year implementation. Now, some 67 bourse members (AB) from the 117 ABs providing margin facility.

Nurhadia said the prolonging target was inevitable due to the absence of detail discussion of the margin regulation revision by the capital market authority and IDX. The lateness happened due to the short time given up to 2009.

Coordinator of Chairman Committee of APEI Lily Widjaja said the organization accepted the condition and said the full authority of the enactment is on Bapepam hand.

"We at least has addressed the recommendation. It is another problem whether or not the sooner or later implementation," she said. (Bisnis/21)

Exchange rate profit boosts up Indofood proceed

photo downloaded from: http://info-karir.com/wp-content/uploads/2009/07/indofood.gif

as published in Bisnis Indonesia daily newspaper
Wednesday, 16/12/2009 00:00 WIB

Exchange rate profit boosts up Indofood proceed

JAKARTA: Net profit of PT Indofood Sukses Makmur Tbk increased 41.38 percent in quarter III/2009 as from last year despite the 5.67 percent net sales.

Finance report per September 2009 shows the net profit rise is due to the profit of exchange rate spread and the plummet of sales cost.

Net profit of instant noodle producer here stands at IDR1.58 trillion mounting from IDR1.11 trillion in quarter III/2008.

Net sales of Salim Group firm here reached IDR28.20 trillion or falling from IDR29.90 trillion in September last year.

However, the lower sales cost September 2009 of IDR20.48 trillion as from IDR22.44 trillion has made significant rise of the corporate gross profit.

"The net sales drop is due particularly to the low CPO price and other commodity price. Almost all business units booked the soaring sales volume," said President Director of Indofood Sukses Anthoni Salim in press release yesterday.

He said the contribution of bogasari Group to the consolidated net sales of Idnofood is 29 percent, but slipping from 31 percent September last year due to the plummet of flour sale price. The contribution of agribusiness division to the sales of Indofood also declined from 27 percent into 19 percent due to the CPO and rubber price drop.

Research head of PT Kim Eng Securites Katarina Setiawan said there were two main points causing the rise of company profits. First, the profit of exchange rate spread stands at IDR601.65 billion from the exchange rate loss position September last year of IDR49.92 billion.

Second, there was soaring gross profit margin of consumer branded product (CBP) due to the falling price of CPO as the raw material.

The growing sales of the division is deemed sharp particularly in relation with the incoming sales calculation from the new subsidiary business, PT Indolakto. Indolakto, as the brand owner of Indomilk and Cap Enaak, was acquired by Indofood worth US$350 million from the Drayton Pte Ltd last year.

"Acquisition of Indolakto helps increase the company net profit. But if Indolakto is not in, the sales still grows 8 percent," she said.

For the corporate obligation balance, Katarina said the debt of balance of Indofood has been growing as from that of last year. But the debt in US dollar denomination declined 36 percent from 46 percent last year.

The stock price was stagnant at IDR3,300 yesterday as from early this week leading to the IDR28.97 trillion market capitalization. (Bisnis/21)

Krakatau Steel IPO to be held in October 2010


as published in Bisnis Indonesia daily newspaper
Tuesday, 15/12/2009 00:00 WIB

Krakatau Steel IPO to be held in October 2010

JAKARTA: PT Krakatau Steel (KS) will offer IPO worth about US$135 million in October 2010.

President Director of KS Fazwar Bujang said the fund required by the company in the long run is worth US$450 million. the company seeks loan for 60 percent of the financing and the other 30 percent of the fund generated from IPO, and the rest is from internal cash.

"We plant to have IPO in October with 20-30 percent of the total shares," he said yesterday.

But he rejected to name the securities nominated as the IPO underwriters.

But based on Bisnis record last year, there were three securities appointed to handle KS IPO, namely PT Danareksa Sekuritas, PT Bahana Securities, and PT Mandiri Sekuritas.

Fazwar said the company will use the IPO fund to increase the corporate production capacity to meet the long term target of 10 million tons per year. Some projects here include blast furnace development and other supporting infrastructure such as industry water machine.

Now the production capacity of KS is about 2.5 million tons and increased into 6 million tons from the joint development of South Korea state firm, Pohang Iron and Steel Company (Posco), iin Cilegon.

The integrated steel manufacturer will produce hot-rolled-coils (HRC), slab (HRC and platform steel raw materials), and platform steel. The total investment disbursed to both companies stands at US$6 billion with 30 percent shares ownership of KS and the remaining is Posco's.

VP & Representative Director of Nippon Steel Corp Kozo Uchida said the offering of KS IPO is lucrative. But he could not ensure the incoming Japanese company to become KS shareholder.

"Now we have not made any decision to buy KS stocks. But there is open occasion."

He said the company still concentrates on how to increase the revenue of subsidiary firm of Nippon Steel and KS, PT Pelat Timah Nusantara Tbk (Latinusa). Nippon Steel and consortium of Mitsui Co Ltd, Nippon Steel Trading Ltd, and Metal One Corp are deemed the major shareholders of Latinusa with 55 percent ownership.

KS divested stock possession of Latinusa to the investment consortium together with the subsidiary firm stock listing so the ownership still has 20.1 percent left. The other owner of Latinusa is PT Baruna Inti Lestari with 4.9 percent possession and public of 20 percent.

Latinusa stock price was robust on the opening bell but the slipped IDR25 into IDR300 on the closing bell so that the market capitalization stood at IDR757.01 billion.

President Director of IDX Ito Warsito said the number of emitters listing their stocks in the bourse will be 13 this year as previously targeted.

There are still two emitters to list their stocks in the bourse up to end of the year, namely PT Bank Tabungan Negara Tbk and PT Gunawan Dianjaya Steel Tbk.

Next year, the state emitters that will list the stocks in the bourse include PT Garuda Indonesia, PT Pembangunan Perumahan, dan PT Perkebunan Nusantara III, IV, and VII. (Bisnis/21)

Fajar Wisesa prepares US$85 million for capital expenditure


as published in Bisnis Indonesia daily newspaper
Tuesday, 15/12/2009 00:00 WIB

Fajar Wisesa prepares US$85 million for capital expenditure

JAKARTA: PT Fajar Surya Wisesa Tbk prepares US$85 million capital expenditure by 2010 to purchase paper maker machinery.

Director of Fajar Wisesa Hadi R. Ongkowidjojo said the machinery will have full operational start in 2011 which is estimated to increase the production capacity and corporate sales.

Now the company has four types of paper maker machines with each capacity of 150,000 - 200,000 tons per year. The total corporate production is about 700,000 tons.

He said the production capacity of the new machine is about 300,000 tons per annum. He assumed the revenue could grow up from regularly IDR3 trillion into IDR4 trillion from the new machine contribution.

"Later we will build it in our plant location in Cibitung, Cikarang," he briefed the press yesterday.

The fund for new machinery purchase will be generated from US$70 million loans with local and overseas bank syndication.

The syndicated credit facility with 5 years tenure is managed by HSBC Ltd and United Overseas Bank Limited (UOB), assisted by PT Bank Rakyat Indonesia Tbk and Bank Mandiri of Singapore based.

Now the company has short term loan facility from some banks worth totally US$40 million. The position of corporate debt totally is at US$145 million of which the US$20 million is from short term.

The rights issue planned previously in 2008 could become one of the other options. But the implementation should still observe the capital market growth condition next year. " IF the capital market condition is good, so why not?"

The company has three product categories, linerboard and corrugated medium paper, coated duplex, and sack craft. (Bisnis/21)

Tax Investigation Puts Pressures on Bumi Share


as published in Bisnis Indonesia daily newspaper
Tuesday, 15/12/2009 00:00 WIB

Tax Investigation Puts Pressures on Bumi Share

JAKARTA: PT Bumi Resources Tbk share slumped 5.83% to IDR2,425 yesterday following massive selling triggered by negative sentiments in the wake of the investigation into tax crimes allegedly committed by PT Kaltim Prima Coal and PT Arutmin Indonesia.

A decline in the share price of Bakrie Group-owned coal company made its market cap slide by IDR2.9 trillion to IDR47.05 trillion from last weekend's position. Bumi share price yesterday once fell 8% to IDR2,375.

Head of Research at PT Syailendra Capital Lanang Trihardian revealed the 2007 tax arrear issue was the main factor putting Bumi share price under pressure.

He informed this was not the first time that the national largest coal producer and exporter was investigated for tax arrears.

"The financial statement indeed is quite abnormal. Its tax-to-revenues ratio is only 5%, far lower than 40% recorded by other coal producers."

In the wake of this case, he recommended investors being conservative against Bumi shares on a possibility that the company might have its earnings declined if it serviced its tax arrears in 2010.

Director General of Taxation Mochamad Tjiptardjo last week exposed the Directorate General of Taxation was conducting an investigation into tax crime cases worth IDR2 trillion allegedly committed by KPC, Arutmin, and PT BR.

The statement came up after the dispute between Minister of Finance Sri Mulyani Indrawati and Chairperson of Golkar party Aburizal Bakrie was made public, triggered by Sri Mulyani's statement printed in Thursday edition of The Wall Street Journal last week.

In the meantime, President Director of Indonesia Stock Exchange (BEI) Ito Warsito would ask about the investigation into KPC and Arutmin to the management of Bumi, the holding company of the two coal companies.

"We officially have to ask questions about the investigation, but we won't do that hastily since the bourse has its own process."

Corporate Secretary of Bumi Dileep Srivastava stated the company was waiting for further explanation from the taxation authorities to have the same perception. (Bisnis/pul/21)

Equity Mutual Fund Gives 0.84% Return: Market Volatility to Remain High


as published in Bisnis Indonesia daily newspaper
Monday, 14/12/2009 00:00 WIB

Equity Mutual Fund Gives 0.84% Return
Market Volatility to Remain High

JAKARTA: Equity mutual fund in November booked an average return of 0.84%, rising from -0.95 in October.

Other open ended funds, namely balanced and fixed-income mutual funds, recorded an average return of 0.83% and 0.37%, respectively in November.

Data by PT Infovesta Utama showed 52 equity funds posted positive returns of the existing 70 equity funds, while the remaining 18 equity funds still had negative returns.

The equity fund return was still smaller than the Composite Stock Index (IHSG). The index in November jumped by 2.03%, thanks to an average share price increase of 8.75% in consumer goods sector and of 3.46% in infrastructure sector.

The same data by infovesta also told that Manulife Syariah Sektoral Amanah, Panin Dana Maksima, and Schroder Indo Equity Fund were three mutual fund products booking the highest returns among 70 equity funds (see table) in November. They were tailed by Manulife Saham Andalan and Phinisi Dana Saham.

Manulife Syariah Sektoral Amanah, Manulife Saham Andalan, and Phinisi Dana Saham are mutual fund products overseen by PT Manulife Aset Manajemen Indonesia.

Chief Investment Officer and Director of Manulife Aset Manajemen Raymond Gin said the company collected many stocks in consumer goods and cement sectors, thus, bolstering the returns of the company's equity fund returns, especially Manulife Syariah Sektoral Amanah return.

"We hope the capital market will grow 20% next year to give positive contribution to the mutual fund industry's performance," Raymond told last weekend.

Market volatility
He estimated the capital market in the near future would still show high volatility, so that he reminded investors to prepare themselves for the potential IHSG volatility. In the medium-term, he was optimistic the economy would keep improving as reflected by the surging cement industrial growth and automotive sales.

Senior Analyst at Infovesta Utama Rudiyanto viewed the slight equity fund return growth was attributable to the swarming number of products overseen by small-scale investment managers prioritizing portfolios with high-return shares.

"With the index growth relatively stagnant this month, it will be difficult for equity funds to give high returns, except if the investment managers are willing to spend their money on highly volatile shares."

Equity funds that have booked the highest year to date returns are Pratama Saham (162.12%), Trim Kapital Plus (143.59%), and Reksa Dana Grow-2-Prosper (131.90%). The three best-performing equity funds are tailed by Panin Dana Prima and Dana Pratama Ekuitas.

In addition to stocks, investment managers have also been aggressively sinking their overseen funds in T-bonds. As of December 8, mutual fund ownership of T-bonds reached IDR44.97 trillion, skyrocketing IDR11.86 trillion from IDR33.11 trillion in January 2009. (Bisnis/21/rni)

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