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Monday, May 31, 2010

Oto Multiartha raised their bond issuance to IDR1.3 trio

Oto Multiartha raised their bond issuance to IDR1.3 trio

Irvin Avriano A.

JAKARTA: PT Oto Multiartha, an automotive multifinance subsidiary of Summitomo Corporation, raised up their VII/2010 bond issuance from IDR1 trillion, the original target, to IDR1.3 trillion.

From the PT Kustodian Sentral Efek Indonesia (KSEI) official website today, the issuance has been allowed by the capital market authority and still waiting for the code by the PT Bursa Efek Indonesia.

The issuance divided into 4 tranches and tenures. The A tranche worth IDR300 billion which tenured a year and couponed 7.9%, B tranche worth IDR225 bio for 2 yrs and 8.7%, C tranche worth IDR575 bio for 3 yrs and 10.05%, and D tranche worth IDR200bio for 4 yrs and 10.65%.

The data also confirmed the earlier report in Bisnis Indonesia last week that shows the raising value of the bond issuance and the coupon that will be given to their investor for every year that given in every three months.

PT DBS Vicker Securities Indonesia, PT HSBC Securities Indonesia, and PT Standard Chartered Securities Indonesia are the lead underwriter for the bond issuance.

The automotive financing company plans to list their bond in the bourse board in early June.

Summarecon gains IDR250 billion loans: Summarecon Bekasi projects funding problem resolved


Summarecon gains IDR250 billion loans: Summarecon Bekasi projects funding problem resolved

Irvin Avriano A.
Bisnis Indonesia

JAKARTA: PT Summarecon Agung Tbk gained DIR250 billion credit facilities from PT Bank Mandiri Tbk to develop the latest property project, Summarecon Bekasi.

An informed executive said with the loan form Bank Mandiri, Summarecon consequently should have general meeting of bond holders (RUPO) given that Bank Mandiri is the trustee board of the II/2008 bonds worth IDR100 billion.

"The RUPO will seek approval from the bond holders to change the trustee board as required by the regulation," he said last week.

Summarecon schedules to have RUPO on June 10 to change the trustee board with reference to the regulation of Bapepam-LK No VI.C.3 on the credit and underwriting relation involving the trustee board and emitter.

The regulation restricts the limit of loan amount the trustee board could provide which must not exceed 25 percent of the emitter issued bonds. The limit is made to keep from conflict of interest of the trustee boards and emitter.

The Summarecon II/2008 bonds have 14.1 percent coupon maturing in June 2013. The company also has other notes, the I/2008 sharia bonds worth DIR200billion maturing in June 2013.

Bank Mandiri is possibly substituted by PT Bank Rakyat Indonesia Tbk (BRI) as the new trustee board.

When asked, President director of Summarecon Johanes Mardjuki conceded the information. But he could not explain further the loans. "It should wait for RUPO."

On public expose May 5, Finance director of Summarecon Michael Yong said the company allocated DIR800 billion capital expenditure in 2010-2011.

The IDR150 billion allotment is for the first phase of Summarecon Bekasi development, IDR150 billion for Hotel Harris construction, Menara I apartment project IDR150 billion, and Summarecon Serpong Mall IDR350 billion.

"This year the four projects require IDR410 billion funds. Hotel construction needs IDR100 billion, apartment IDR80 billion, Summarecon Bekasi IDR80 billion, and Summarecon Serpong Mall IDR150 billion."

Most loans are expectedly from bank loans.
Summarecond targets to construct 620 units of houses in Bekasi in 2010. So far, it could build 470 units. The development license is for 240 hectare plots of areas and 180 hectares are not developed yet.

The company plans to construct 4,000 units of houses, 6,110 units of apartments, 1,700 shop residences, mall, and commercial property.

The SMRA stock price rose by 1.35 percent to the level of IDR750 Thursday last week. (Bisnis/iaa/pul)

Thursday, May 27, 2010

Bakrie Stocks Rebound: Directorate General of Taxation Continues with Investigation into Kaltim Prima Coal

Thursday, 27/05/2010 00:00 WIB
Bakrie Stocks Rebound: Directorate General of Taxation Continues with Investigation into Kaltim Prima Coal

Irvin Avriano A.
Bisnis Indonesia

JAKARTA: Only two days after the Supreme Court repudiated the appeal made by the Directorate General of Taxation concerning the investigation into the case of PT Kaltim Prima Coal (KPC), the Bakrie Group stocks rebounded.

Bumi stock surged 19.88% to IDR2,050, PT Bakrie and Brothers Plc jumped 23.08% to IDR64, PT Energi Mega Persada Plc stock soared 52% to IDR114, PT Darma Henwa Plc stock rose 38.33% to IDR83, PT Bakrie Telecom Plc climbed 9.92% to IDR144, PT Bakrie Sumatra Plantations skyrocketed by 29.63% to IDR350, and PT Bakrieland Development Plc moved up by 19.33% to IDR142.

Lanang Trihardian, an analyst at PT Syailendra Capital, revealed the Bakrie Group stocks rebounded because investors had got certainty about Bumi's corporate action plan.

The holding company of KPC, PT Bumi Resources Plc, announced its plan to conduct non-preemptive rights issue on May 24, the same day the Supreme Court issued its ruling.

The plan will be included in the agenda of the Extraordinary Shareholders General Meeting (RUPSLB) held on June 24. According to the plan, Bumi would issue new shares to convert some of its US$500 million's worth of debt.

Based on Bapepam-LK regulation on non-preemptive rights issue, publicly listed companies could issue new shares maximum 10% of equities to, among others, improve the company's financial position.

Referring to the regulation, Bumi can issue up to 1.94 billion shares of the total 19.40 billion shares.

Senior Vice President-Investor Relations of Bumi Dileep Srivastava informed the company this year targeted to reduce its total debt of US$3.4 billion by US$1 billion. Half of the debt cut would be made by converting debt into equities for strategic investors.

"We have informed the agenda [equity increase] to the regulator yesterday. This is the first step of the series of debt cut in 12 months, just like we have announced to the market and the public."

Head of the Real Sector Corporate Finance Assessment Bureau Chief of Bapepam-LK Anis Baridwan confirmed the agenda of Bumi's RUPSLB. He also confirmed the terms and requirements in the non-preemptive rights would be looser than those in rights issue since the former aimed at making it easier for publicly listed companies to make corporate action.

Despite constant denial, many market players believe the non-preemptive rights were part of the conversion of US$1.9 billion's worth of debt that Bumi received from China Investment Corporation (CIC) in September 2009.

One executive at the Bakrie Group who prefers anonymity confided that CIC would enter Bumi as part of a strategic partnership after the Chinese state-owned investment manager disbursed its loan.

CIC will also enter Bumi's business unit, namely PT Bumi Resources Mineral, through the initial public offering (IPO) in the second semester of this year, estimated to invest US$200 million-US$250 million.

Following the recent prices, the total market cap of the Bakrie Group stocks jumped IDR11.69 trillion to IDR63.78 trillion. The Bakrie group traded 10.29 million shares worth IDR1.27 trillion or equivalent to 18% of the total transaction of IDR6.77 trillion on Indonesia Stock Exchange (BEI) yesterday.

The Bakrie Group stock rebounds, together with other rebounds, such as Astra stock one, bolstered Composite Stock Index (IHSG) by 7.27% to 2,696.78. The 7.27% increase is the 18-month high.

Public Share Dilution
Although the new shares would only offered to strategic investors, one analyst viewed the upcoming non-preemptive rights would dilute public shares by maximum 10%. "This [the corporate action] can be considered normal since Bumi has enormous liabilities."

The executive added the delay in the debt-to-equity conversion through non-preemptive rights was attributable to the tax cases of Bumi and its subsidiaries, KPC and PT Arutmin Indonesia.

Before the RUPSLB agenda was announced on Monday night, Bumi stock was under pressure from massive sales on speculation over rights issue. The new share was touted to sell for IDR1,400, eroding the share price from IDR2,425 on May 18 to IDR1,710 on Tuesday.

After the share price plummeted, brokers Sinarmas Sekuritas and Danatama Makmur aggressively bought the shares of the largest national coal producer and export. During May 24-25, Sinarmas spent IDR455.01 billion on Bumi shares, while Danatama IDR75.44 billion. Pressures to sell alleviated, bolstering Bumi share price by 19.88% or IDR340 to IDR2,050.

When asked for confirmation about the possibility of BEI conducting an investigation into the suspicion of information leakage in Bumi's corporate action, Director of Supervision and Compliance of Bourse Members at BEI Uriep Budhi Prasetyo didn't answer to his phone or reply to text message sent.

In the meantime, the Directorate General of Taxation stated it would not terminate the investigation into the alleged tax crime committed by KPC despite the Supreme Court's ruling repudiating the appeal to the case.

Director of Intelligence and Investigation at the Directorate General of Taxation Pontas Pane disclosed the Supreme Court's ruling would not affect the investigation process since the Directorate General of Taxation previously had won the pre-trial lawsuit made by KPC.

Pontas explained the Supreme Court's ruling was only related to the administrative process in issuing the order letter for the examination of preliminary evidences against KPC.

On May 24, the Supreme Court repudiated the Directorate General of Taxation's appeal to a ruling canceling the examination of preliminary evidences against KPC. The Taxation Court ordered the examination on December 8, 2009.

President Director of KPC Endang Ruchiat exposed different interpretations of tax problems curbing the largest coal producer would be left to law enforcers, such as police and the Attorney General's Office to settle. "We only comply with the existing regulations."

A politician from the Golkar party Priyo Budi Santoso denied there was intervention in the trial conducted by the Directorate General of Taxation against KPC.

"This has nothing to do with the Joint Secretariat. There is no intervention. Golkar's hands are tied to interfere with the legal process."

Chairperson of the Golkar party Aburizal Bakrie currently serves as Executive Chairperson of the Joint Secretariat of the Government-Supporting Coalition. The creation of the secretariat took place nearly at the same time with the resignation of Sri Mulyani Indrawati from her Minister of Finance post. Yesterday, Sri Mulyani left Indonesia to occupy her new post as the World Bank Executive Director in Washington D.C.

Soekotjo Soeparto, the Coordinator for Inter-Institutional Relations at the Judicial Commission, said the commission would prioritize studying the ruling on the KPC case. "We will prioritize the case if the plenary meeting approves it." (Bisnis/pul/ts/08/iaa/rar/nti/aca/asa/jao/bsi/ea)

Truba attaines US$115 million contracts

Tuesday, 25/05/2010 00:00 WIB
Truba attaines US$115 million contracts

Irvin Avriano A.
Bisnis Indonesia

JAKARTA: PT Truba Jaya Engineering, the subsidiary firm of PT Truba Alam Manunggal Engineering Tbk, this year has gained US$114.9 million contracts exceeding the targeted US$100 million.

Corporate Secretary of Truba Alam Manunggal Gamala Virasa Katoppo said as from US$114.9 million of the contract total value, US$98.9 million comes from the contract with Chevron for oil and gas project in Riau.

"The remaining US$16 million is the mining construction contract in East Kalimantan. We have started to work on the last contract from May 2010 and finish by 2012," he said in Jakarta yesterday.

Truba is the subsidiary of Truba Alam Manunggal through its subsidiary, PT Manunggal Infrasolusi, with 96 percent shares ownership, PT Multi Energi Persada with 2.33 percent, and PT Kurnia Unggul Sejahtera 1.67 percent.

Gamala added Truba this year allocates IDR31 billion capital expenditure. The figure here is not much given that the massive capital expenditure has been done in 2007-2008 with US$80 million budgets.

Some IPP (indepen-dent power producer) contracts include the 250 megawatt power plant project in Bangka and 60 megawatt project in Pontianak. Both projects are on renegotiation with PLN.

Besides, the company has also sought partner and bank loan for IPP project for 275 megawatt power plant in Kuala Tanjung. The project now is tender process. For IPP, 75 percent of the funds will be taken form bank loan and internal cash.

Meanwhile, PT Pemeringkat Efek Indonesia (Pefindo) has put the II/2007 bond rating of PT Truba Jaya Engineering, the subsidiary firm of PT Truba Alam Manunggal Engineering Tbk, worth IDR200 billion at credit watch rating with negative implication.

In the research released yesterday, analyst of Pefindo Rifan Firmansyah, said the rating action is done due to the lessening emitter cash as reflected by the last year cash position of only IDr76.35 bilion. Meanwhile, the company should pay the bonds with BBB+ rating on the maturity of July 8, 2010.

"The company plans to refinance bonds with bank loan which is on process of negotiation," he said.

Gamal said the company has not given any response to the rating cut. But he said the company ahs got loan commitment form bank without mentioning the bank.

Meanwhile, investor of II/2008 bond PT Arpeni Ocean Line Tbk, the dry bulk and coal shipping company, proposed for the general meeting of bond holders (GMB).

In the letter addressed to IDX, Desk head of trusteeship boards of PT Bank Rakyat In-do-nesia Tbk Anna Maria Ciadarma as the trustee representative of the bond issuance said the GMB proposal is to clarify the corporate finance status.

The proposal was addressed by one of the bond investors, Dana Pensiun PT Telekomunikasi Indonesia Tbk (DP Telkom), with 25 percent possession of the outstanding bonds issued by the company worth IDR600 billion. (Bisnis/10/iaa)

Monday, May 24, 2010

Capital Outflow to Continue: Market Awaits New Minister of Finance's Response

Monday, 24/05/2010 00:00 WIB
Capital Outflow to Continue: Market Awaits New Minister of Finance's Response

Irvin Avriano A.
Bisnis Indonesia

JAKARTA: The massive capital outflow pummeling the Indonesian financial market last week is projected to continue.

However, such a situation is believed to have yet led to a bearish market and the Composite Stock Index (IHSG) is still possible to rebound, thanks to the strong Indonesian economy and promising outlook of publicly listed companies' performances as shown by the Q1 performance.

Head of Research at PT Paramitra Alfa Sekuritas Pardomuan Sihombing revealed the continued capital outflow was triggered by worries about the impacts of the European debt crisis on the global economic recovery since there had not yet been any clear messages sent as to how the crisis would be resolved.

Therefore, investors were prompted to rebalance their investment. "They will still take profit-taking actions in capital markets that have huge potential gain, such as the Indonesian market," he said last weekend.

He added this week the market would await the result of the emergency meeting between US Secretary of Finance Timothy Geithner and several high officials in Europe. In Indonesia, the market would await quick responses from the central bank (BI) and newly installed Minister of Finance Agus Martowardojo.

The IHSG last week slumped twice below a psychological level of 2,800 and 2,600. Throughout last week, the index finished down by 8.23% to 2,623.22, a two-month low marking the biggest correction on regional level.

Last week, foreign investors booked IDR10.26 trillion in sales and IDR7.73 trillion in purchase. Therefore, net-sale reached IDR2.53 trillion, the year high so far. In the previous week, foreign net-sale was still at IDR955 billion.

Worries that the European crisis would impede the global economic recovery and cut export also dragged down oil price by 7.1% to US$64.09 per barrel, which is the lowest since October. Prices of sixteen plantation and mining commodities on New York exchange also slumped.

In line with this, CPO spot price on Malaysia Futures Exchange and thermal coal price at Newcastle port, Australia Indonesia's two top export commodities-fell by 6.2% and 4.3% to US$757.1 per ton US$97.8 per ton.

At the same time, the rupiah exchange rate to the US dollar slid to IDR9,281 and once even touched IDR9,363 last weekend. Nearly all regional currencies like Indian rupee, Ringgit Malaysia, and the Philippines peso were also under the same pressure.

Pardomuan, who is also Secretary General of the Indonesian Securities Analysts Association, believed the rebalancing could take longer than projected until the European and global economies found a new point of balance.

The problem was that Greece's debt payment, which in the short-term would give positive impacts, would also tighten liquidity in Europe. As a result, amid the current trend of low interest rate, economic growth would be contracted.

"During the subprime mortgage crisis, the interest rates could still be lowered. Right now, the rates can no longer be lowered since they have already been low. The European crisis can have longer impacts than the subprime one," said Pardomuan, who is also Head of Research at PT Paramitra Alfa Sekuritas.

Following the threat of global economic contraction, investors were prompted to let go og their stock portfolios in emerging markets, correcting the bourse bubble that had been created since earlier this year.

The stock market bubble was exposed by a research by the central bank (BI), which was announced on April 7. At the time, Director of the Directorate of Economic and Monetary Policy Research Perry Warjiyo disclosed the central bank could impose capital outflow ban to stabilize the market.

When Perry cited this, the index was rallying to reach a new high, followed by a stronger rupiah exchange rate to the greenback to break a psychological barrier of IDR9,000. Minister of Finance Sri Mulyani on April 17 also expressed the same worry about the rupiah appreciation.

Global threat

An analyst at PT AAA Securities Helmi Therik added the market was still seeing a threat to the global economy despite the commitment already announced by Europe. The problem was the effectiveness of the commitment would only be temporary. The market would only recover for a day before it again slumped.

For example, Helmi illustrated, Greece had paid for its due liabilities of 8.5 billion euros on May 19, but it had not fully restored market confidence in the Greek economy.

"Investors will not only be concerned about the risk of default on the emergency fund commitment, but also the consequence of the overdue bond bailout, which is every European Union country is required to lower their deficit-to-GDP ratio to less than 3% in three years."

This, he added, would lead to the surging cost of economic activity decline to minimize deficit. The economic growth-supporting fiscal stimuli would be scaled down, prompting declining economic activities in Europe.

On the other hand, the cost of European crisis settlement would also burden the monetary instrument as much as it had burdened the fiscal one. The European Central Bank (ECB) was potential to buy the toxic debt instrument, which would increase the amount of outstanding euro money.

Commenting on the situation, Chairperson of the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) Ahmad Fuad Rahmany argued in an unsteady market a small pop could create a big bang, especially in the global capital market.

Besides, the impact and time of Greece debt crisis settlement could not yet be projected. "However, I think the correction yesterday was more attributable to a decline of 3.6% in the Dow Jones bourse."

Suhendra Wahid, an analyst at PT Trust Securities, viewed a decrease of 10% in the IHSG was a technical cycle. Indications of the bearish market would be looming if the index was corrected by more than 20%. "On the other hand, correction will instead create new opportunities to enter the market."

Meanwhile, in his research an analyst at CLSA Asia Pacific Markets Nicholas Cashmore viewed corrections in the Indonesian stock market were late since the market had booked dramatic positive performance over the past 15 months.

Based on the profits realized during the period, the IHSG could drop to a psychological level of 2,500. "The average profit-taking action over the past 200 days can drag down the index to 2,550," he said.

Strategically speaking, however, the Indonesian bourse would still be attractive, thanks to favorable climate and high gain. The favorable climate was shown by controllable debt, declining cost of capital, demand for commodity rally, and declining manufacturing product prices. (Bisnis/ags/bsi/luz/iaa)

Bapepam-LK Delays Application of Direct Market Access

Monday, 24/05/2010 00:00 WIB
Bapepam-LK Delays Application of Direct Market Access

Irvin Avriano A.
Bisnis Indonesia

BOGOR: The Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) delays the application of direct market access (DMA) in online trading despite previous approval from bourse members and Indonesia Stock Exchange (BEI).

"We curb the DMA application for a time being since our supervisory has not been sufficient to supervise the practice," Chairperson of the Bapepam-LK Ahmad Fuad Rahmany told the press last weekend.

DMA is a mechanism for foreign securities firms to trade securities via domestic bourse members. Under the mechanism, the foreign firms can directly access the sale and purchase transaction using the online trading facility.

BEI has included the clause on the DMA application to the requirement of facilities that securities firms have to be provided in the online trading service, which has come into effect since earlier this month.

However, added Fuad, the bourse authorities still needed to monitor every transaction. Unfortunately, the authorities had not yet had a device to run such a supervisory role.

Commenting on this, Director of PT BNI Securities Jimmy Nyo admitted no securities firm had used the DMA facility despite permission from BEI.

"So far, no firm has used the DMA facility and we think the agency's [Bapepam-LK] decision is appropriate to prevent unpleasant thing from happening."

Separately, members of the Indonesian Brokers Association (IPEI) approve the plan to merge into a new association, which will be called the Indonesian Capital Market Professionals Association (APPMI).

The agreement was announced at the extraordinary national conference held in Bogor during Saturday-Sunday.

"With this, the extraordinary national conference of the IPEI approves the plan to merge into the new association, but with some notes in mind," told Chairperson of the IPEI Saidu Solihin at the closing of the conference yesterday.

The merger will involve the Indonesian Floor Traders Association (AWP2EI), the Indonesian Underwriters Representatives Association (AWPEEI), and the Indonesian Investment Manager Representatives Association (AWMII).

The merger was coined three years ago and a MoU was signed on November 10, 2009. The MoU agreed to a request for approval from the members of each association. (Bisnis/iaa)

Oto Multiartha bond issuance potentially upsized to IDR1.2 trillion

BI / exchange

Irvin Avriano A.
Bisnis Indonesia

Oto Multiartha bond issuance potentially upsized to IDR1.2 trillion

JAKARTA: PT Oto Multiartha, automobile financing companies, potentially increasing the amount of bond VII/2010 issuance to IDR1.2 trillion, or as much as 20% above the initial value of the target company IDR1 trillion.

Numbers of market players said the company has set a coupon bonds from the tenor of a year-four years amounted to 7.9% -- 10.65%.

One of bond market participants said the coupon on the securities was set at 7.9% for tranche A which tenured 370 days, tranche B with two years tenure is to 8.7%, and tranche C of 3-year tenure 10.05%. In addition, the coupon for tranche D of the company's bond for the four-year tenure is set at 10.65%.

"The number of issuance is uncertain, but devotees are quite large, so the company is considering to increase the amount of the issuance from the initial target," said another source to Bisnis yesterday.

Coupons were assessed varied compared with the value which offered by issuers to investors in the early period of the bond's offering was for 8.05% -- 10.62% so as not to cause negative or positive sentiment towards the bond issuers.

Oto Multiartha Corporate Secretary Saiful Ichlas when confirmed yesterday said has not been updated about the latest data from the company's bond issuance. Similar thing said by Oto Multiartha Finance Director Edy Suyitno can not be sure the numbers.

"I'll asked the company's treasury immediately."

In the marketing of the bond, the company assisted by PT HSBC Securities Indonesia, PT Standard Chartered Securities Indonesia, and PT DBS Vickers Securities Indonesia as the lead underwriter.

HSBC Securities President Director Bartholomeus Hari Mantoro did not respond to the short message service sent yesterday, as well as the Standard Chartered Securities Director Agus Wicaksono.

The plan the company will use proceeds from the issuance of fixed interest bonds that story is for working capital financing this year's four-wheeled vehicles.

Based on the record of Indonesia Stock Exchange, the company still has a total worth of bonds IDR1.7 trillion, which consists B tranche from V/2007 series and A, B, and C tranches from VI/2009 series.

B tranche of V/2007 series valued IDR500 billion and A tranche of VI/2009 series worth IDR200 billion will mature in June and December.

This year, the company targets add a new vehicle financing contract (booking) worth IDR10.5 trillion, while the target unit financed by the company to reach 110 000 cars.

At the end of last year, the company has 47 marketing network throughout Indonesia. The company also managed to distribute funding worth IDR7.99 trillion, an increase of almost 10% compared with last year.

The company recorded net profit of IDR464 billion last year, an increase of 15% compared with 2008. (10)

Agus Ready to Deal with Political Pressures

Friday, 21/05/2010 00:00 WIB

Agus Ready to Deal with Political Pressures: Positive Sentiment towards Minister of Finance's Inauguration Prevents Index and Rupiah from Plummeting

Irvin Avriano A.
Bisnis Indonesia

JAKARTA: Minister of Finance Agus D.W. Martowardojo is ready to deal with political pressures in doing his new by building a good communication with the stakeholders.

He said he would try to build internal as well as internal communication to create a favorable situation in doing his job.

Agus made the statement in response to questions asked by journalists regarding his readiness to face political pressures in running his new post as the Minister of Finance after he was inaugurated by President Susilo Bambang Yudhoyono in the State Palace yesterday.

Although he admitted that change could not be made overnight, Agus promised he would continue reform at the Ministry of Finance.

When met after the transfer of post from Sri Mulyani Indrawati, held two hours after the inauguration, Agus again spoke of political relations.

"We fully understand and believe that it will be impossible for the Ministry of Finance to do its job without supports from all stakeholders within and without the Ministry of Finance".

He added, "We need good coordination with all stakeholders, whether with the House of Representatives, the businesses, NGOs representing the people, and others. We have to do our respective jobs and functions well".

Agus continued in the next eight months he and Deputy Minister of Finance Anny Ratnawati would maintain the momentum of economic growth by ensuring a healthy state budget.

In a bid to secure tax and non-tax state revenues, Agus said the Ministry would focus on efforts to improve taxpayers' compliance by fostering their patriotism.

The banker, who will leave Bank Mandiri, cited he would strike a harmonization between fiscal and monetary policies. He also emphasized bureaucratic reform as something important.

"We understand that remuneration is not yet ideal. However, since I have chosen to become a civil servant, I have to be committed to running the Ministry of Finance as best as I can to make us really proud to deliver something and create public welfare".

Anny didn't comment much. "The prioritized assignment is to continue the bureaucratic reform. The next most important assignments are economic and fiscal stabilities", she said.

Former Minister of Finance Sri Mulyani considered Agus and Anny the right figures to helm the Ministry of Finance.

Deal with leakage

Coordinating Ministry for Economic Affairs Hatta Rajasa stated the new Minister of Finance was assigned by President Yudhoyono and Vice President Boediono to bolster state revenues by minimizing leakages.

"Last night [Wednesday night], the President and the Vice President gave their direct instruction. Reform has to be continued and state revenues have to be secured since we are about to deliberate the 2011 State Budget. It is not a challenge to be taken lightly," he said in the Vice Presidential Palace yesterday.

Chairperson of the Federation of Domestic Private Banks (Perbanas) Sigit Pramono hoped it would be easier for Agus to synchronize fiscal and monetary policies to bolster the real sector growth.

Chairperson of the House's Commission XI Emir Moeis inserted he was waiting for several Bill deliberation agenda involving the Minister of Finance and the Deputy Minister of Finance, one of which is the Financial Service Authority (OJK) Bill.

Vice Speaker of the House Priyo Budi Santoso hoped Agus could build a better communication between the government and the House. "Agus is one of capable figures and top bankers in the country, so that we believe Agus will be able to build a good communication with the parliament," said the politician from the Golkar party.

In the meantime, Anggito Abimanyu decided to resign from his post as Head of the Fiscal Policy Agency (BKF).

"From six months ago, I should have been appointed Deputy Minister of Finance. So, when a definitive deputy minister has been named, it's over".

Anggito said he would return to Gadjah Mada University as a lecturer. "This is actually my wish from the very beginning".

Meanwhile, positive sentiment towards the appointment of Agus as the Minister of Finance was unable to prevent the index decline on investors' worry about transaction limit in the European bourses.

Yesterday, the Composite Stock Index (IHSG) on Indonesia Stock Exchange (BEI) fell by 1.29% or 35.24 points to a two-month low of 2,694.25. Moreover, the rupiah exchange rate to the US dollar dropped 0.91% to IDR9,265.

"Indonesia has been facing capital outflow," told an analyst at PT Trust Securities Suhendra Wahid.

According to him, such a situation transpired because foreign investors were worried about transaction limit in the European bourses, including the German bourse, in the wake of the Greek debt crisis. Such limitation covered short selling ban and hedge fund limit.

An economist at PT Bank Danamon Indonesia Plc Helmi Arman disclosed the appointment of Agus and Anny created a neutralizing positive impact on the market psychology.

Both figures were argued to reduce worries among some parties about the increasingly limited role of the government in making policies after Chairperson of the Golkar Party Aburizal Bakrie was appointed the Chairperson of the Coalition Party Joint Secretariat. (Bisnis/ts/asd/agi/aca/dea/irs/ltc/yes/iaa/ags/bsi)

Astra Graphia targets IDR1.5 trillion revenues

Thursday, 20/05/2010 00:00 WIB

Astra Graphia targets IDR1.5 trillion revenues

Irvin Avriano A.
Bisnis Indonesia

JAKARTA: PT Astra Graphia Tbk, the subsidiary firm of PT Astra International Tbk, targets to increase the revenue into IDR1.46 trillion at minimum this year. The figure rose by 10 percent as from IDR1.33 trillion last year.

"At least we target to tap double digits this year above 10 percent for the net profit and revenue," said President Director of Astra Graphia Lukito Dewanjaya to press after public expose yesterday.

Emitter AGMS yesterday decided to share DIR20 dividend or ID26.97 billion or 40.3 percent of the IDR66.94 billion net profit last year.

"The amount has include the IDR6 interim dividend shared November last year and the other IDR14 per share unit is paid on June 17," said Director of Astra Graphia Diana Makmur.

In quarter I/2010, emitter revenue was corrected by 18.15 percent as from last year, but the net profit sharply increased by 51.81 percent. The company booked IDR291.55 billion revenues in quarter I/2010 from IDR356.21 billion in quarter I/2009.

Despite the falling revenue, business profit of Astra Graphia rose by 6.77 percent from IDR23.49 billion in quarter I/2009 into IDR25.08 billion in quarter I/2010 along with the declining sales outstanding cost.

Diana said the revenue plummet was driven by the significant information technology project of the subsidiary business early 2009. the similar project could not be used by the company. "But we are optimistic this year will be as good as last year."

Besides, he said the soaring net profit was also driven by the interest rate drop. In the GMS the company approved the change of directors from Satyo Lumaksono Hadisaputro replaced by Herrijadi Salim.

Lukito said this year the company allocates routine capital expenditure by IDR78-80 billion to hire machinery annually. But the company also studies the acquisition of some business and business brands this year.

However, the company has not specifically defined the acquisition target or prepared special budget for the acquisition scheme. When needed, the company has larger cash and could lure debt facility which is still at minimum amount.

Now the calculation of debt to equity ratio (DER) is below 1 percent. "We have IDR61.9 billion debts or far different from our cash. By end of quarter I we still have IDR134.35 billion cash," she said.

Relating to the rumor on the investor interest to the company, Lukito said he has heard any information about that. But the company has not got any interest expressed by the investor.

Yesterday, the stock price of Astra Graphia, ASGR, was weakened by 3.26 percent to the level of IDR445 per share with market capitalization of IDR600.2 billion. (Bisnis/iaa)

Charoen allocates US$70 million capital expenditure

Wednesday, 19/05/2010 00:00 WIB

Charoen allocates US$70 million capital expenditure

Irvin Avriano A.
Bisnis Indonesia

JAKARTA: PT Charoen Pokphand Indonesia Tbk allocates US$70 million capital expenditure (capex) to boslter the production or aobut IDr636.61 billion (US$1=IDR9.094).

President Director of Charoen Pokphand Thomas Effendi said some 40 percent of the fund is allotted to develop and maintain the new plant here.

"The US$20 million is to build processing plant for poultry food this year. The rest (from the total allotment of US$28 milion) will be used for the new plant equipment and maintenance," he said in public expose yesterday.

Currently the company has studied some proper locations to build the plants in Java.

The new plant will have 500 million tons capacity and the company predicts the number of corporate capacity could grow from 4,500 million tons into 5,000 million tons in 2012 when the plant is accomplished.

Besides, the company also allocates 25 percent of the capital expenditure for the breeding farm, 25 percent for expansion of food processing business, and the other 10 percent is for the development of chicken feeder mill and feather processing plant for the chicken food.

The company will use internal cash and unexecuted bank loans. In 2008, Thomas said the company had IDR2.7 trillion loans. But last year the company could cut the figure down into IDR900 billion. The rest of the loan facility has not been executed yet.

In the AGMS yesterday, the company decided to share 40 percent dividend of the IDR1.61 trillion net profits last year ot eotyh IFT645.08 billion. the shared dividend is IDR196 per share unit. Last year the company did not share any dividend in 2008 book year.

The net profit of the company sharply jumped by 535 percent as from IDR257 billion in 2008 due to the exchange rate spread profit. without exchange rate here, the company booked the soaring profit by 255 percent from IDR500 billion in 2008 into IDR1.4 trillion last year.

The net profit rise here was driven by the falling corn raw material price so the imported poultry food could be minimized.

"In addition to the soaring net profit due to the commodity price drop in general, the incoming investment in Indonesia becomes lower and even far lower due to the exchange rate spread."

The company is targeted to increase the revenue this year by 12.8 percent and net profit target is to grow by 14 percent without calculating the exchange rate spread. (Bisnis/iaa)

Tuesday, May 18, 2010

BTN bond coupon at 10.25%: Bond and sukuk pricing of Titan Kimia completed

Tuesday, 18/05/2010 00:00 WIB

BTN bond coupon at 10.25%: Bond and sukuk pricing of Titan Kimia completed

Irvin Avriano A.
Bisnis Indonesia

JAKARTA: PT Bank Tabungan Negara Tbk (BTN), the largest mortgage provider bank which listed their stock last year, set the bond coupon of XIV/2010 with 10 years tenure at 10.25 percent.

A business player said the demand for bonds from underwriter stood at IDR3.3 trillion and it enables the company to increase the bond issuance as from earlier target of IDR1.5 trillion.

"The coupon of 10.25 percent is enough for the emitter as it is relatively lower noting that the company is deemed a company with frequent bond issuance, let alone BTN is the state firm," he said to Bisnis in Jakarta yesterday.

Director of BTN Saut Pardede confirmed the information but he could barely ensure the increase of the bond issuance. "WE have not made any discussion on the increase of bond issuance,' he said.

In the issuance, BTN is assisted by three underwriters, PT Mandiri Sekuritas, PT Indo Premier Securities, and PT Bahana Securities as the underwriter.

Another market player said PT Titan Petrokimia Nusantara, the subsidiary of PT Titan Kimia Nusantara Tbk, has finalized bookbuilding and collected the bond and sukuk issuance demand

Unlike BTN bond, the market player said the coupon of both bonds worth totaling IDR500 billion with 5 years tenure is set higher or 12.35 percent.

Corporate secretary of Titan Kimia Merciana Anggani was not available for comment and neither Finance Director of Titan Kimia Ezani Bin Sheikh Mohamad.

Titan appointed Indo Premier Securities and PT Standard Chartered Securities Indonesia as the underwriters.

Menwhile, PT Selamat Sempurna Tbk had appointed PT Andalan Artha Advisindio Sekuritas (AAA Securities) and PT Investindo Nusantara Sekuritas as the issuance of IDR300 billion bonds.

Another market player said the company has registered the bond issuance document to the capital market authority. When asked, President Director of AAA Securities Th. Andri Rukminto was not available for comment.

But Real Sector Corporate Finance Assessment Bureau Chief of Bapepam-LK Anis Baridwan conceded the information of bond registration of Selamat Sempurna.

"They had just submitted the document but I cannot mention the issuance amount," he added.

The bond issuance scheme in semester I/2010 is accumulated into IDR23.17 trillion and US$10.5 million exceeding the last year record which booked IDR15.26 trillion. The figure is potentially to rise by 51.83 percent. (Bisnis/iaa)

Underwriting value lowered down

Tuesday, 18/05/2010 00:00 WIB
Underwriting value lowered down

Irvin Avriano A.
Bisnis Indonesia

JAKARTA: The Capital Market and Finance Institution Supervisory Agency (Bapepam-LK) studies to cut down percentage of underwriting value which is categorized into the calculation of the adjusted net working capital (MKBD) as from the proposed 30 percent into 15-20 percent.

Securities company and transaction bureau chief of Bapepam-LK Nurhaida said the plan to cut down underwriting composition will be effectively done by each securities company with underwriting license.

The regulation will be issued following the issuance of draft revision of Law No.V.D.5. on the maintenance and report of MKBD. "The 15 percent cut is deemed quite more relaxing. In the near future, we will see input form the market players," he said in Jakarta yesterday

The plan here concerns with an earlier draft issued by the capital market authority last eyar. Bapepam plans to set the underwriting limit in the second draft which is put in the ranking of liabilities.

The liabilities rank is a number of contingent liabilities and off balance sheet liabilities which according to certain calculation will be added to the liabilities as the risk factor of MKBD calculation.

Formerly, liabilities calculation does not affect the MKBD calculation. in the final draft, Bapepam recommended the 30 percent of the underwriting commitment when it has gained effective statement from the capital market authority.

For underwriting with portion process, 50 percent of the notes issuance which are not booked yet should be added to the liabilities rank. With the already accomplished portioning contract, 100 percent of the remaining notes with unsold portion should be included in the liabilities ranking.

The underwriter which acts as the standby buyer, liabilities rank is derived from the 50 percent of the total haircut multiplied by the offering price of some stocks portion.

As to him, the calculation of liability ranking is badly required to define the securities financing condition and thus their risks are measurable.

"We want all risks are measurable in the MKBD. If it is low, it ignores risks, but if it is high, it burdens the securities. The plan comes from the simulation we have made," he said.

It is possible to meet the market player that call for the portion increase so the capital market authority still expects inputs from market players. (Bisnis/iaa)

Monday, May 17, 2010

IDR14 trillion bonds flocked the market

Monday, 17/05/2010 00:00 WIB

Irvin Avriano A.

IDR14 trillion bonds ready flooded the market

JAKARTA: Some IDR14.25 trillion senior bonds and corporate subdebt ready to flood the market by semester I/2010 which will boosted bond issuance into DIR22.87 trillion since early the year.

Data of Bapepam-LK shows the registration document of IPO bond has been on process and would be issued by 10 emitters promptly by semester I/2010.

The 10 emitters planning to issue bonds promptly and now on the bookbuilding include PT Bank Tabungan Negara Tbk (BTN), PT Oto Multiartha, and PT Titan Petrokimia Nusantara.

"The quickest to exit from my bureau is the bond from BTN and Oto Multiartha," said Service Sector Company Finance Assessment Bureau of Bapepam-LK Noor Rachman to press last week.

Some subdebt issuances will become one of the instruments supporting the banking capital which needs corporate capital balance booster to adjust to the CAR rise regulation.

Separately, Real Sector Company Finance Assessment Bureau Chief of Bapepam-LK Anis Baridwan said the bond issuance in his bureau which is on process is Titan Petrokimia, the subsidiary firm of PT Titan Kimia Nusantara Tbk.

As to him, the many bond issuances are more of the finance sector emitter than the real sector.

Head of Fixed Income Division of PT Anugerah Securindo Indah Ramdhan Ario Maruto said the bond issuance this year will be higher than last year which most influence comes from the less coupon given by the emitter.

The corporate bond coupon is based on the yield of SUN with the similar tenure at the secondary market. Yield will decline when the price grows stronger such as that of early the year until European and Greek crisis last month.

"This year there will be more due to some newcomers. The main factor is the lower coupon and lower issuance cost noting that the SUN market is good early the year."

He worried if semester II or yearend the interest rate will have soaring trend which then influences the SUN yield.

Ramdhan is still optimistic the corporate bonds will be absorbed by the market and there is no tight competition for investors noting that market will not feel as if flocked by investment instrument.

This is owing to the currently high liquidity fund as proven by the bond mounting bond exchange at the secondary market if compared to that of in 2009. (Bisnis/iaa)

Tuesday, May 11, 2010

Pembangunan Jaya Ancol rating affirmed idA+

Irvin Avriano A.
Bisnis Indonesia

Pembangunan Jaya Ancol rating affirmed idA+

JAKARTA: PT Pemeringkat Efek Indonesia (Pefindo) reestablish the I/2007 PT Pembangunan Jaya Ancol Tbk bond ratings valued IDR200 billion in idA+ level. The debt rating outlook assigned to the stable level.

In his research, Pefindo analyst Rifan Firmansyah assess these ratings reflect the company's strong position in the recreation business segments. In addition, the company's financial condition was also assessed by the high proportion of sustained corporate fixed-income, conservative capital structure and cash flow protection which very strong.

"However, ratings were limited with relatively availability of land to support the property business and the limited growth in the recreation business," he said in a research companies which sent this morning.

The Company previously postponed the publication of bonds worth IDR200 billion which planned to issue this year which will used to finance the company's development projects.

The postponed issue caused by the excess cash funds that still owned by the company, approximately IDR400 billion, so the company can use those funds and did not need to issue the bond.

The Company was founded in 1992, which originated from the Executing Agency Ancol Development Project which was established by the Government of DKI Jakarta in 1966.

In addition to operating the recreational area in Ancol-Jakarta, which is the largest recreation area in Indonesia today, the company also has a property business that is by reclaiming the area around a place of recreation and then sell the land.

As of late last year, the company shares owned by the DKI Jakarta administration with a composition of 72%, 18% of PT Pembangunan Jaya, and the publik by 10%.

Kresna paid off its bond

Irvin Avriano A.

Kresna paid off its bond

JAKARTA: PT Kresna Graha Sekurindo Tbk (Kresna Securities) fully paid-off the principal and coupon I/2007 bonds totaling IDR150 billion on May 8th.

Kresna Securities Corporate Secretary Tevi Sarie in a press release saying that Kresna Securities' bonds is comprised of three tranches, amounting to IDR30 billion for A tranche tenured 370 days, B tranche amounting to IDR45 billion, and C tranche amounting to IDR75 billion.

"Tranche A was fully paid on May 13th 2008, B tranche had been repaid on May 8th 2009, and the remaining C tranche has settled on May 8," said Tevi today.

In I/2010 quarter, the company booked net profit of IDR4.31 billion. Last year, the company booked a net profit increase of 192.7% compared to 2008, from IDR4.25 billion to IDR12.44 billion. The increase in net income caused also increasing earning per share of the company's stock from IDR16 to IDR26.

Kresna Securities has three main business lines of stock and bond trading, underwriting, and investment managers. The company currently also has a subsidiary in life insurance business. Company, which founded in 1999 has listed its shares on the stock market in 2002.

Kresna stock, coded KREN, stagnant at IDR405 level in the trading floor and form a market capitalization of the issuer's financial sector for Rp236,52 billion.

Indocement boosted capex to be US$ 100 million

Tuesday, 05/11/2010 17:23:05 WIB
By: Irvin Avriano A.

Indocement boosted capex to be US$ 100 million

JAKARTA ( PT Indocement Tunggal Prakarsa Tbk, the second largest cement producer, increasing the funding of capital expenditure amounted to US$ 100 million this year, up from initial projections of US$ 70 million.

Indocement Finance Director Christian Kartawijaya said a number of funds that will be used to build cement mills in Cirebon to increase production capacity of 1.5 million tons which is scheduled to be operational in May 2010.

"We also started to build two new cement mills in Citeureup with an additional capacity of 2 million tons, accelerating from the initial plan, related to market conditions and more quickly than competitors," he told the press this afternoon.

The two cement mills in Citeureup, he said, the plan can be fully operational by 2012.

Christian said the company will use funds from the company cash from retained earnings and still looking for bank loan for the funding.

Indocement booked net income IDR2.74 trillion last year. From the company's profit allocated dividend of Rp225 per share or a total of Rp282 billion.

Its composition of 30% of the total net profit of the company. Indocement President Director Daniel Lavalle said the company hopes to increase the market capitalization of the company from the current position of 31% by the expansion in 2012.

Issuers, he said, also plans to build independent power plant (IPP) to eliminate the dependence from the electrical state.

"Black out happen a few times in our factory, supposing we are a motorcycle, we can not walk fast if gasoline stalled. In addition, the rate increase plan is also one consideration."

He sees the increasing tariff plan of electricity for big consumers are less proportional.

The power plant, he said, will also be built along with the construction of a new factory complex additional capacity of 2-3 million tons in 2014. "That remains to be considered our study."

Tigaraksa targets to have IDR5.7 trillion sales

Tuesday, 11/05/2010 00:00 WIB
Tigaraksa targets to have IDR5.7 trillion sales

Irvin Avriano A.

JAKARTA: PT Tigaraksa Satria Tbk, consumer product distributor and seller, aims to get 17-20 percent sales growth this year into IDR5.6-5.74 trillion due to the corporate historical trend. Last year, the company booked IDR4.78 trillion sales.

Director and Corporate Secretary of Tigaraksa Troy Parwata said the sales of consumer goods gave the largest portion to the corporate revenue in which last year it reached IDR4.49 trillion or 93.88 percent of the total of consolidation sales.

To support the sales target, the company allocates DIR41.8 billion capital expenditure this year. "Most of the funds or 50 percent will be allotted to buy LGP gas tanks," he said after annual and extraordinary GMS yesterday.

Gas tank is the material of the subsidiary firm, PT Blue Gas Indonesia, which was taken over from Application Des Gaz SA in 2000. Blue Gas has four business lines, production, sales of gas stove package, non package gas stove, gas refilling, and importation and direct sales of Vienta brand kitchen set.

GMS yesterday agreed to share IDR35.8 billion dividends or IDR39 per share unit to shareholders. The meeting also agreed the appointment of Adhi B. Supit as one of the new directors and approved the revision of the company statute.

Troy added the company has studying cooperation with 2-3 dairy milk producers to use the company asset, dairy factory in Cangkringan, Sleman, Yogyakarta.

"Revenues from our factory are not significant but it will maximize our plant so as not to be idle. It could not mention the name as negotiation is underway."

The company also considers to close or activate three currently idle business units. PT Tigaraksa Optima and PT Inti Karya Agrosatria were out of operation since 2003 and 1999, and PT Tigaraksa Properti is not operational yet.

In quarter I/2010 the company booked IDR13.13 billion net profits or dropped 7.71 percent from IDR14.38 billion last year. The plummet was due to the mounting tax of IDR4.87 billion as from IDR1.31 billion last year.

Up to April, shareholders of the company consist of PT Penta Widjaja Investindo with 37.31 percent ownership, PT Sarana Ledaun (30.56 percent), PT Widjajatunggal Sejahtera (25.33 percent), Robert Widjaja (0.22 percent), Meity Tjiptobiantoro (0.009 percent), and public (6.56 percent).

The TGKA stock price was stagnant at IDR330 yesterday and the market capitalization stood at IDR303.1 billion. (Bisnis/iaa)

Sunday, May 9, 2010

Multistrada plans to seek US$175 million third-party loan

By Irvin Avriano A.
Bisnis Indonesia

Multistrada plans to seek US$175 million third-party loan

JAKARTA: PT Multistrada Arah Sarana Tbk, a listed producer of the tire brands of Achilles, plans to seek third-party loans worth US$ 175 million or equivalent to Rp1, 62 trillion, to be used as investment and/or working capital.

Company, through its information disclosure on the PT Kustodian Sentral Efek Indonesia (KSEI) last weekend, plans to ask for approval of its shareholders to pledge assets in order to attract loans totaling IDR1.62 trillion rupiah.

Request approval will be submitted at a general meeting of shareholders on June 10. In 1stQ/2010, the company recorded net profit of IDR54.97 billion, up 2.997% from a net loss in the 1stQ/2009 as much as IDR1.89 billion.

"The funds will be used to purchase machinery and the company additional working capital to increase tire production capacity of 16,000 units per day to 28,500 units per day," quoted the information disclosure.

In a notice to the Indonesia Stock Exchange, the company also plans to increase production capacity of motorcycle tubles tires doubled from 8,000 unit to 16,000 units per day.

The company will share the investment credit in the program to increase capacity and working capital. The division is comprised of US$ 154.56 million for capacity extensions, and US$15 million this year and US$5 million next year for working capital.

Multistrada also intend to use internal funds for US$ 24.66 million for the expansion plan. The stcok issuer also acknowledges that the plan constitutes a material transaction because the value entered into the category of corporate action type.

To meet the rules of Bapepam-LK. IX.E.2, still from that disclosure, the company plans to request approval of shareholders in the EGM to approve the materials action plan.

The company predicts that increasing capacity can raise the company's net income from amounted IDR174.86 billion last year to IDR152.18 billion this year and amounted to IDR223.96 billion in the next year.

When asked for confirmation, Multistrada Director Sukarman, which is also the holder of 0.13% shares of the company, refused to comment on the plan. Mutistrada Finance Director Yohanes Ade Bunian Moniaga not reply to short messages which sent.

The financial statements at the end of March showed the company recorded net profit of IDR54.97 billion, an increase of 2.997% compared with the company booked a net loss in the first quarter of last year amounted to IDR1.89 billion.

The shareholders of the company at the end of last month consisting of PVP XVIII Pte Ltd 26.1%, Prudent Capital Ltd by 14.28%, The Bank of New York Melon at 7.29%, and the rest of the public shareholder.

The emitter's stock price closed corrected 3.77% to IDR255 level and form the stock coded MASA's market capitalization to IDR1.56 trillion.

Return of equity fund slowing down: Emitter with less capitalization worthy collecting

Saturday, 08/05/2010 00:00 WIB
Return of equity fund slowing down: Emitter with less capitalization worthy collecting

Irvin Avriano A.

JAKARTA: The average return of equity fund last month was 5.8 percent or less than the growth of Jakarta Composite Index (JCI) of 6.98 percent due to the fluctuating stocks with less capitalization and non blue chip.

Data of PT Infovesta Utama shows the average returns of 74 equity funds here were slightly mounted by the small number of investment products with high return as from the other parts.

There are only 36 mutual fund products booking the returns above the average of 5.8 percent. meanwhile, the other 38 products have lower than average returns.

Research analyst of Infovesta Utama Edbert Suryajaya said this is due to the fact that most equity funds use blue chip as the portfolios in the top ten securities as the investment composition.

"The stock market last month was mostly driven by the non blue chip stocks. The higher return of mutual funds is mostly of non blue chip," he said to Bisnis this week.

Stock analyst of Infovesta Utama Praska added some flying stocks sector last month which boosted the return of equity fund is those from mining, manufacture, and property.

As to him, mining stocks could grow stronger in a larger number than the other sectors due to the soaring mining commodity prices like nickel and tin at the global market.

"I note there are some soaring stocks last month from mining such as PT Adaro Indonesia Tbk, PT Indo Tambangraya Megah Tbk, and PT United Tractor Tbk."

The Infovesta data also shows there are only two equity funds recording higher return than 10 percent. Both products include Reksa Dana Millennium Equity of PT Millennium Danatama Indonesia and Reksa Dana Panin Maksima of PT Panin Sekuritas Tbk.

Director & investment manager of Panin Sekuritas Winston Sual said the large spread of equity funds particularly those managed by the company was due partily to the fluctuation of the emitter stocks with less amount of capitalization.

That kind of stock still has better fundamental and the price is still quite low and thus they are worthy to collect.

"One of the instances moving the stock exchange is that of PT Telekomunikasi Indonesia Tbk with large capitalization and becomes one of the major portfolio of mutual fund industry. As only less has robust growth last month, most equity funds have less return."

Data of Infovesta Utama also shows the average return of equity fund is still far larger than the average return of mixed mutual funds of 3.12 percent as from 114 products and 102 fixed income mutual fund with 1.44 percent returns.

Bapepam-LK data February 2010 shows the total of mutual fund under management stood at IDR113.27 trillion with 70.81 billion floating units. (Bisnis/iaa/faa)

CIMB Group eyes on listing in Indonesia: Banking market to expanded in Vietnam and Cambodia

Saturday, 08/05/2010 00:00 WIB
CIMB Group eyes on listing in Indonesia: Banking market to expanded in Vietnam and Cambodia

Irvin Avriano A.
Bisnis Indonesia

KUALA LUMPUR: CIMB Group Holdings Bhd, the holding of PT Bank CIMB Niaga Tbk, plans for listing its stocks in Indonesia for the second chance in a bid to increase the market capitalization as from the current US$15 billion.

CEO of CIMB Group Nazir Razak said the plan will be materialized after the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) deliberate regulation on foreign company stock listing.

"We want Indonesia community to have opportunity to have stocks of the holding company of CIMB Niaga. So, there are two options for investment," he said yesterday.

However, he said the business entity here has not yet addressed their proposal to the Indonesia capital market authority in this line as it still waits for the dual listing regulation which will be deliberated.

Nazir ensures after the deliberation of dual listing regulation of foreign company, the company will promptly list their stocks at the Indonesia Stock Exchange (IDX).

Along with the stock listing in Indonesia, CIMB Group has never planned to upgrade the composition of public shareholder of CIMB Niaga from the current portion of only 2 percent.

"We are not currently focusing on CIMB Niaga rights issue despite the less liquid stocks at market. We prefer our own stock listing of CIMB Group in Indonesia due to the great potential."

Besides, the company also plans to have stock listing in Thailand to collect capital for the CIMB Group that still waits for the deliberation of dual listing regulation in that country.

The shareholder of Bank CIMB Niaga currently consists of CIMB Group with 78.3 percent possession, Kha-zanah Na-sional 28.4 percent, and public 2 percent.

CIMB Group also plans to possess banking industry in ASEAN by 2015 by expanding market to Vietnam and Cambodia.

"We are still waiting for license from their authority and government. Once the license is deliberated, we will directly build our business there."

CIMB Niaga that contributed 20 percent of the holding company revenue here targets to contribute 40 percent of the business group revenue by 2015 or larger than the business of the holding in Malaysia.

Meanwhile the corporate business in Malaysia will contribute under 40 percent, then followed by that of in Singapore, Thailand, and other countries.

President Director of CIMB Niaga Arwin Rasyid added the company is finalizing subdebt issuance worth IDR1.5-2 trillion. (Bisnis/iaa)

Sulistyo & Margeret candidate for KSEI directors

Sulistyo & Margeret candidate for KSEI directors

Irvin Avriano A.

JAKARTA: Sulistyo Budi and Margeret M. Tang become candidate for director of the PT Kustodian Sentral Efek Indonesia (KSEI) in a recent meeting of the general meeting of shareholders (GMS) which will be held in June.

Both these names represent a single package that passed fit and proper test that held by Bapepam-LK. Both will replace two of the three directors who currently serves on the custody agency.

Numerous sources said officials in the capital market KSEI directors who still survive is Ananta Wiyogo as a chief executive. Two other directors namely Trisnadi Yulrisman and Risbadi Purbowo will be replaced.

One source said the two names suggested to the new officers of directors of one of self regulatory organization (SRO) is Sulistyo, KSEI Head of the Information Technology Division, and Margeret who currently serves as Director & Head of Securities and Funds Services branch of Citibank NA Indonesia.

"The three names of directors candidate of KSEI who are in a single package that had been submitted to Bapepam-LK. There are two new names on the package. They've been conducting fit and proper test that was held by the capital market authorities," said him this week.

Sulistyo was promoted from an internal candidate KSEI, which is also one of the five division heads in KSEI. Margeret, other candidates, active in the Asosiasi Pengelola Reksa Dana Indonesia (APRDI) as a member of Rules & Taxation Compartment and deputy chairman of the Asosiasi Bank Kustodian Indonesia (ABKI).

Other executives said the term of office will expire because Trisnadi already served two terms in the same position since 2004. While Risbadi and Ananta had their position since June 2007.

Securities Transaction and Institution Bureau Chief of Bapepam-LK Nurhaida said three candidates for KSEI directors has been passed fit and proper test process. Furthermore, the decision rendered on KSEI GMS to be held next month.

"I can not comment on who are the new candidates, but they [prospective directors] had been passed fit and proper test. Just waiting for the GMS approval."

Separately, Ananta and Margeret also justify their graduation from the fit & proper process by the Bapepam-LK. "But, still awaiting the decision of the GMS," said Margeret.

Wednesday, May 5, 2010

BTPN bonds turns into IDR1.3 trillion

Wednesday, 05/05/2010 00:00 WIB

BTPN bonds turns into IDR1.3 trillion

Irvin Avriano A.
Bisnis Indonesia

JAKARTA: Bond issuance value of PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) II/2010 increased from initial target of IDR750 billion into IDR1.3 trillion due to the high investor demand.

"The company set the bond coupon at the level of 9.9 percent for tranche A nd 10.6 percent for tranche B," said Bisnis resource yesterday.

The bond series here consist of two tranches. The A tranche bond with 3 years tenure issuance is worth IDR715 billion and tranche B with 5 years tenure valued at IDR585 billion.

Other resource said the company has got demand worth above IDR2 trillion. But with the upgrading rating has made BTPN confident to cut down the coupon as form the maximum level of 10.9 percent into 10.6 percent.

BTPN bond issuance is assisted by three underwriters, namely PT Mandiri Sekuritas, PT CIMB Securities Indonesia, and PT Indo Premier Securities.

When asked, President Director of BTPN Jerry Ng conceded the mounting bond values into IDR1.3 trillion. "The coupons are 9.9 percent and 10.6 percent," he said.

Director of Investment Banking of Mandiri Sekuritas Iman Rachman was not available for confirmation. "Sorry, there is no effective statement yet from Bapepam-LK," he said through short message last night.

This year BTPN is projected to grow above 30 percent from IDR15.7 trillion last year. He said some 50 percent of the bond issuance will be used for funding the business development and pension financing and micro credit expansion.

The corporate bond has got AA- rating from PT Fitch Ratings Indonesia which had just been upgraded from A+ level in March due to the good asset possession. (Bisnis/iaa)


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