'Bapepam-LK is the right to monitor money market'

as published in Bisnis Indonesia daily newspaper

Saturday, 05/12/2009 00:00 WIB

'Bapepam-LK is the right to monitor money market'

JAKARTA: Bank Indonesia (BI) considered the Capital Market and Finance Institution Supervisory Agency (Bapepam LK) is more proper to perform in regulation and supervision to the existence of money market as the complementary to the finance system.

Ad interim BI Governor Darmin Nasution said the issue on money market formation should be revived as the complementary to finance system. In other countries, money market serves as investment and financing alternative.

"Money market has wide scopes including the SBI and credit that could become money market. So, it is only money market that has competition each other. So, we think it is necessary to articulate the issue rather than left idle," he said yesterday.

Substantially the regulator and supervisor of money market is closer than Bapepam despite the fact that the Law only supervises the distribution of bonds above one year tenure.

"That is closer to the authorities of Bapepam despite the fact that Law on Bapepam has already stipulated the notes of more than one year. But it leads Bapepam not to consider it as its responsibility," he said.

BI could hardly do supervision noting that the player in the money market is the securities company. It violates Law No. 23/1999 on BI.

Chief of Bapepam-LK Ahmad Fuad Rahmany was not available for comment on the preparedness of the capital market authority in money market supervision.

The issue on money market formation was addressed by Darmin Nasution this week. The absence of money market has made Indonesia finance system ineffective yet and thus resulted in inefficient financing due to the absence of bank competitor in offering short term financing alternative.

Ideally, a country finance system consists of three financing sources, capital market, banking, and money market. Bank has no competitor and thus the offered lending rate could hardly be cut off. Capital market is not deemed the competitor as it focuses more on long term financing.

Money market is a group of market in which there is trading of short term credit instrument with high quality. The function of money market serves as the alternative of finance institution non finance firm to meet the short term or extra fund placement.

Economist of PT Bank Danamon Indonesia Tbk Helmi Arman agreed with Daramin.

Now Bapepam has higher function to supervise corporation and corporate issuance rather than Bi function focusing on mere bank.

"Usually CP [commercial paper]issued by the company is for short term working capital so it is necessary for corporate to have quick cash," he said yesterday. (Bisnis/hta/21)

Secondary offering revised regulation to be deliberated: Bumi to invest in Recapital

as published in Bisnis Indonesia daily newspaper
Friday, 04/12/2009 00:00 WIB
Secondary offering revised regulation to be deliberated
Bumi to invest in Recapital

JAKARTA: Bapepam-LK plans to issue revised regulation on the secondary offering up to 10 percent of the rights issue at maximum next week.

The revision of regulation No. IX.D.4 is deemed more flexible than the former one allowing public company to have rights issue without rights of 5 percent shares at maximum.

Responding to the issuance of revised regulation, Director of PT Bumi Resources Tbk Eddie Junianto Soebari said so far the company has not formulated yet the plan.

"We could not respond to press news coverage. Based on the policy, we don't want to step forward ahead of regulator policy. So, just wait for our public expose," he said.

Bumi has 19.4 billion shares with full participation and placement. With the new revised regulation, the coal firm that has just attained US$1.9 billion loan from China Investment Corporation (CIC) has opportunity to issue a maximum of 1.94 billion new shares (not 19.4 billion shares as reported in November 2 edition ).

Would it be executed, CIC could acquire 1.94 billion Bumi new stocks and thus the fresh cash injection could be allotted for Bumi debt payment.

Separately, chief of Bapepam-LK Ahmad Fuad Rahmany claimed to have implemented rule making rule process including feedback from market players since the past few months.

"Hopefully it could be issued next week. yesterday I saw it again. This week we asked fro the final draft to the legal consultant, AEI [the Indonesian Association of Emitters) and others I have not signed."

The new regulation is simpler in stipulating requirements to shareholder prior to the general meeting of shareholders (GMS) agenda.

Bumi as the largest coal company in Indonesia under Bakrie Group, will invest in Recapital to manage exclusive marketing of a coal firm expecting to tap at least 25 percent profit.

Without further details, Bumi claimed the investment will be done in the near future. When asked whether the investment deals with the acquisition of PT Berau Coal, the coal firm with production capacity of 20 million tons per year, Finance Director of Bumi Andrew Beckham admitted it.

But, so far the divestment transaction of Berau shares from Rizal Risjad as the owner is not finalized yet. "It is not final yet. We are still discussing (about investment in Recapital). We will talk about the strategy if it (Berau acquisition transaction) is final. We surely announce it promptly to the regulator when finished."

On the other side, Bumi allocate investment funding and acquisition worth totally US$1.27 billion from US$3.17 billion gained by the company in four months since August. (Bisnis/pul/21)

Para Group attained US$1 billion credit: Trans Corpora to issue US$600 million bonds

as published in Bisnis Indonesia daily newspaper
Friday, 04/12/2009 00:00 WIB
Para Group attained US$1 billion credit
Trans Corpora to issue US$600 million bonds

JAKARTA: Para Group owned by Chairul Tanjung attained financing commitment worth US$1 billion to fund the acquisition of lifestyle media and industry with international networks.

Chairman of Para Group Chairul Tanjung said the company has got financing commitment from US and European banks worth above US$1 billion.

He said the would-be acquired firm is public company. The corporate now select five global media companies for the acquisition.

"On the discussion we surely talk about ownership structure. We want to become the majority. But if it is not possible yet, we will enter as the minor shareholder first," he said yesterday.

Para Group has three business lines, financial services under Mega Corpora. Media, lifestyle, and entertainment sectors are controlled by Trans Corpora, and natural resources sector under the control of CT Global Resources.

Chairul said the acquisition action for global scale lifestyle media and industry is executed as the corporate expansion which has so far had business of the sector through the subsidiary firm, PT Trans Corpora.

"We have talked with five major players in the would-be acquired sectors every month. We target that the sooner the decision is the better," he added.

The value of Trans Corpora now stands at US$2 billion, and is expectedly to triple by 2010 through expansion and acquisition of other companies.

He also said Trans Corpora plans to issue US$300-600 million bonds next year which will be projected for the development of Southeast Asia region studio.

"We have defined the location but we could not mention it. Underwriter selection is underway. But the point is that it will be overseas securities," he said.

In the past six years, Para Group keeps acquiring companies.

Two years ago, Para Group took over PT Mahagaya Perdana, PT Naryadelta Prarthana (Baskin Robbins), and PT Anta Express Tour & Travel Services Tbk. At the same time three new companies were established, namely Trans Living and CTG Property and multifinance corporations, Mega Auto Finance and Mega Central Finance.

Para Group also owns retail sector business with major possession in Bandung Supermall. In 2007, Chairul played in agribusiness sector by prepareing IDR5 trillion funds.

In 2008, Para Group prepared an acquisition of medium scale bank with IDR8 trillion acquisition fund prepared.

Mid this year, Chairul is said targeting online news portal, Detikcom, which is one of the business divisions of PT Agranet Multicitra Siberkom. The rumor spreads out when two minor shareholders of Detikcom, Tiger Investment and Mitsui & Co, intend to sell the stocks for business expansion.

Mitsui and Tiger Investment assigns Credit Suisse to offer their stocks. Agranet owns 59 percent of Detikcom, Tiger 39 percent, and Mitsui 2 percent. (Bisnis/bpj/21/mmh)

Astra International capital expenditure is worth IDR5 trillion

as published in Binsis Indonesia daily newspaper
Friday, 04/12/2009 00:00 WIB
Astra International capital expenditure is worth IDR5 trillion

JAKARTA: PT Astra International Tbk allocates IDR4-5 trillion capital expenditure or equal to the allotted budget this year.

Senior Vice President Chief Corporate Communication of Astra International Arief Istanto said the capital expenditure is mostly absorbed by the subsidiary company focusing on coal mining, PT United Tractors Tbk.

"Next year capital expenditure for the group has more or less the same value of this year. United Tractors spent IDr4 trillion which has recently announced its US$400 million capital expenditure," he briefed the press yesterday.

Funding resource is attained from internal cash. But it is possible that the company will take external funding when the subsidiary firm needs additional expansion cost.

"If United Tractos intends to acquire new mining, we will later think about the external funding option," he said.

Yesterday the stock price of ASII rose 0.31 percent (IDR100 per share unit) into IDR32.650. The price to earning ratio (PER) was 14.18 times.

In the current year, the corporate stocks rose 209.48 percent so the market capitalization stood at IDR132.18 trillion.

Meanwhile, PT Unilever Indonesia Tbk allotted IDR400-600 billion capital expenditure next year for the routine corporate budget.

Corporate Secretary of Unilever Indonesia Franky Jamin said the company plans to use the fund for boosting the corporate production capacity and plant machinery maintenance.

"It is funded from internal cash," he said to press yesterday.

The company allotted higher capital expenditure than last year of IDR1 trillion due ot the brand acquisition action done. The company this year is predicted to grow by 10 percent at minimum.

As to Franky, the corporate sales growth is driven by the soaring sales volume instead of only the growing production goods price which is sold following the inflation rate.

The stock price has reached the expensive level, or IDR11, 850, but the company has not planned to have stock split yet.

The stock price at that level has made the stock price to earnings ratio (PER) of 25 times

Corporate net income is predicted to reach IDR2.86 trillion by end of the year and IDR3.38 trillions next yearend. (Bisnis/21)

Jasa Marga to Allocate IDR1.3 trillion Capex

as published in Bisnis Indonesia daily newspaper

Thursday, 03/12/2009 00:00 WIB

Jasa Marga to Allocate IDR1.3 trillion Capex

JAKARTA: Publicly listed PT Jasa Marga will allocate IDR3.1 trillion in capital expenditure (capex) next year for periodical routine financing, operational cost, and toll road capacity enhancement.

Corporate Secretary of Jasa Marga Okke Merlina revealed the company planned to get 50% of the capex or IDR1.55 trillion from banking loans.

"In the meantime, IDR650 billion will come form the remaining IPO funds and the rest IDR900 billion from equities," she told the press yesterday.

She explained the company this year only absorbed 50% of the targeted capex of IDR4.6 trillion due to delays in land acquisition and new toll road construction.

The company also targets its revenues at the yearend at IDR3.6 trillion, rising from IDR2.6 trillion as of the third quarter of 2009.

Last year, the company booked IDR3.3 trillion in revenues from 900 million transactions.

The company is also sounding other businesses outside the core businesses, namely the property and Cengkareng-Bandung optic fiber construction businesses.

Head of Finance Bureau at Jasa Marga Ronny Haryanto revealed the optic fiber would be developed on or around the company's existing road routes. The optic fiber, he said, aimed to link the company's facilities on the route.

However, he continued, the company was also reviewing the possibility of leasing the optic fiber networks to other parties to generate more revenues. According to him, the optic fiber networks started construction last year.

He added the company also had some rooms to seek bank loans as the company's debt to equity ratio (DER) was only still at 1.2, creating a chance for the company to borrow IDR16 trillion maximum.

Kalbe Farma

In the meantime, PT Kalbe Farma allocates IDR450 billion-IDR500 billion in capex next year, which will come from equities.

Director of Finance-Corporate Secretary of Kalbe Farma Vidjongtius exposed the fund would be allocated for routine expenditure, such as bolstering plant capacity, product research and development, machinery maintenance, and quality control.

Vidjongtius said the capex might increase from the initial target if the company next year planned to acquire brands or products.

The funding would be excluded from the merger and acquisition (M&A) plan. According to him, the company was also sounding external financing by, among others, issuing bonds worth IDR500 billion-IDR1 trillion.

"External financing will be needed if our M&A requires more than IDR300 billion."

Vidjongtius said the M&A was estimated to require at least IDR100 billion. (Bisnis/21)

Oto Multiartha to Issue IDR1.2 Trillion Bond: SMF Extends Bookbuilding Period

as published in Bisnis Indonesia daily newspaper

Thursday, 03/12/2009 00:00 WIB

Oto Multiartha to Issue IDR1.2 Trillion Bond

SMF Extends Bookbuilding Period

JAKARTA: PT Oto Multiartha increases its bond issuance from the previous target of IDR600 billion to IDR1.2 trillion.

"The bond has got effective statement from Bapepam-LK today [yesterday]," said President Director of PT HSBC Securities Indonesia Hari Bartolomeus Mantoro in his text message to Bisnis yesterday.

HSBC Securities and PT Standard Chartered Securities Indonesia are the ones underwriting the bond.

He revealed the bonds would consist of three series. The first bond (one-year tranche A) worth IDR200 billion would give a coupon of 9.8%, the second bond (two-year tranche B) worth IDR500 billion would offer a coupon of 11.25%, while the third bond (three-year tranche C) would worth IDR500 billion.

Director of Oto Multiartha Edi Suyitno recently said the company would play a role in car financing to meet a market share target of 8.2% for new cars.

For next year, he added, the total national car market was projected at 525,000 units, rising from 465,000 units this year.

Until the yearend, the company targets to book IDR400 billion in earnings. Until the third quarter of this year, Oto Multiartha was able to record IDR372.5 billion in earnings. In the meantime, the subsidiary of Sumitomo Corporation, which controls a 83.5% stake, last year was able to post IDR405 billion in earnings, soaring from IDR107 billion in 2007.

Edi added the surging equities also indicated the company' stronger financing performance. The company's equities until July 2009 reached IDR2.09 trillion, rising from IDR1.99 trillion from 2008.

The surging equities, he continued, were attributable to soaring earnings last year as well as to the fact that Sumitono Corporation together with PT Summit Auto Goup injected IDR360 billion in equities last year.

At the moment, he disclosed, the company charged an interest rate of 16-17%, lower than the previous 18%-19%. "The interest rate has been declining in the past two-three months, which also improve credit."

SMF Bond

On the other hand, PT Sarana Multigriya Finansial (SMF), which intends to issue second bond 2009 worth IDR350 billion, extends the bookbuilding period.

"We observe that the bond market is being volatile due to the Dubai World case and the flourishing bond issuance this year," said Corporate Secretary of SMF Eko Ratrianto.

SMF bond will be underwritten by PT Bahana Securities.

The company plans to use 90% of the funds raised from the bond issuance for the refinancing program and the rest for asset-backed securities securitized from BTN housing loans.

During the public expose, President Director of SMF Erica Soeroto told the company planned to lend IDR450 billion next year. "But, we are still waiting for approval from the shareholders."

The company also plans to market asset-backed securities mutual fund next year. (Bisnis/21/mts)

Bond value of Oto Multiartha swelling up

as published in Bisnis Indonesia daily newspaper

Tuesday, 01/12/2009 00:00 WIB

Bond value of Oto Multiartha swelling up

JAKARTA: Bond issuance value of PT Oto Multiartha has potential rise up to IDr1 trilion from early scheme of IDR600 billion due to the high demand from investors. Bond coupon offered to investors ranged from 9.75 to 12.75 percent.

"Their bond book building process is very good. The company will make it to public in couple of days," said an informed executive to Bisnis yesterday.

He said the bond issuance here has almost doubled oversubscription or nearly IDR1.2 trillion worth. The high demand is due to the relatively stable government bonds (SUN) with the bullish condition in the past two weeks.

Finance Director of Oto Multiartha Edi Suyitno said he was on leave so he could not confirm the information, and so was Operational Director of Oto Multiartha Rosalina Dhanudimuljo could barely provide confirmation. " I am on meeting," he said last night.

Director of PT Standard Chartered Securities Indonesia Agus Wicaksono conceded the company has set the coupon. But he directed the coupon query to emitter.

President Director of PT HSBC Securities Indonesia Hari Bartolomeus Mantoro said Oto Multiartha has still waited for effective statement given by the Capital Market and Finance Institutions Supervisory Agency (Bapepam-LK) which is scheduled Wednesday this week.

In addition to Standard Chartered Securities and HSBC Securities, bond emitter here also assigned PT Sinarmas Sekuritas as the underwriters. PT Bank Mandiri Tbk acts as the trustee boards and undewriting agents in the bond issuance. (Bisnis/21)