ASF bond selling will be started on Wednesday

the photograph of ASF President Director Djony Bunarto

ASF bond selling will be started on Wednesday

Some sources said that the PT Astra Sedaya Finance (ASF) will start to offer their XI/2010 bond worth IDR1 trillion on Wednesday.

Its marketing started after the debt instrument receive its pre-effective statement from Capital Market and Financial Institution Supervisory Agency (Badan Pengawas Pasar Modal dan lembaga Keuangan/Bapepam-LK).

When confirmed, Service Sector Companies Appraisals Bureau of Bapepam-LK Noor Rachman said the pre- effective statement has been given to its underwriter since Thursday.

"I already give those statement to them on Thursday afternoon," said Noor Rahman to me last weekend.

The company set their ceiling limit for their bond issuance at IDR2 trillion. The company and its bond had idAA- ratings from PT Pemeringkat Efek Indonesia (Pefindo).

The securities company who arrange the bond's public offering are PT HSBC Securities Indonesia, PT CIMB Securities Indonesia, PT Mandiri Sekuritas, and PT Indo Premier Securities.

The company's bonds which will mature this year are about IDR1.15 trillion. The debt instruments devided into seven tranches and four series.

They are ASF IX/2008 C and D tranches worth IDR201 billion, ASF subordinated VI/2005 K tranches worth IDR50 billion, ASF VIII/2007 E and F tranches worth IDR400 billion, and ASF X/2009 A and B tranches worth IDR506 billion.

But from all of its bonds, ASF were still have obligations to pay off their all 13 tranches of debt papers worth IDR2.11 trillion which will mature in varies time until 2012.

CP Prima ratings downgraded, tax arrears indications denied

CP Prima ratings downgraded, tax arrears indications denied

Irvin Avriano A

for Bisnis Indonesia

JAKARTA: Fitch Ratings downgraded the issuer rating dafault (IDR) of long-term foreign-denominated issued by PT Central Proteinaprima Tbk (CP Prima) from level C to the level of RD. The rating of the company's bonds worth US$325 million is affirm at C level.

Based on Fitch's press release today, the international ranking agency was also revoke the negative watch rating (RWN) rating outlook which set at CP Prima.

The bonds issuance is done by its subsidiary companiy, Blue Ocean Resources Pte Ltd, which guaranteed by CP Prima and CP Prima's subsidiary.

The ratings was done after the company failed to pay off the bond coupon of its US dollar bond worth US$17.87 million on January 27, which is the deadline for which was given for 30 days to pay off their obligations.

Fitch assess the condition of the company's financial liquidity is still tight due to contamination of the virus in company's shrimp ponds.

CP Prima is currently still in the negotiation process to realize a standstill agreement with bond investors. Debt ratings are also still has the potential to be improved again from RD level back to level C when the agreement was executed.

The next ratings actions will be done by Fitch after the results of the restructuring process continues after the standstill runs.

Related to tax issues, the Directorate General of Taxes set CP Prima is one of 10 listed companies that has declared the tax arrears this week.

However, the disclosure of information to the Indonesia Stock Exchange (IDX/Bursa Efek Indonesia), the company said every company in Indonesia is almost certain to have the tax arrears at the end of the year.

"At the time of the cut-off date in the end of the year, certainly all companies in Indonesia have a tax debt, [and] the tax debt would be paid every date 15th of the next month," said Corporate Secretary of CP Prima Albert Sebastian in the IDX disclosure.

Albert also said the company would make clarification of the tax debt kinds, referred to the Directorate General of Taxes announcement that have been published in previous news.

IDX Director of the Company Appraisals Eddy Sugito said the stock exchange authority has requested confirmation from each of the issuer associated with the announcement of the Directorate General of Taxes.

Directorate General of Taxes Based on reports, there are at least 10 listed issuers to tax arrears.

Some of them are PT Bank Negara Indonesia Tbk, PT Bank Bukopin Tbk, PT Surya Dumai Tbk, PT Perdana Karya Perkasa Tbk, and PT Sampoerna Agro Tbk.

Next are Paper Factory PT Tjiwi Kimia Tbk, PT Steady Safe Tbk, PT Sumalindo Lestari Jaya Tbk, and PT Holcim Indonesia Tbk. There is also a candidate who got caught issuers of tax arrears, the PT Garuda Indonesia.

The clarification action was also done by Capital Market and Financial Institutions Supervisory Agency (Badan Pengawas Pasar Modal dan Lembaga Keuangan/Bapepam-LK).

Service Sector Companies Appraisal Bureau Chief of Bapepam-LK Noor Rachman said that they also have asked for clarification about the tax arrears indication to the listed companies.

"Besides of the IDX, we also asked them, separately."

PT PP Tbk oversubscribed 1.7 times

PT PP Tbk oversubscribed 1.7 times

The marketing of PT Pembangunan Perumahan Tbk's new shares get oversubscribed by the investors, shows the demand reaches more than IDR900 billion.

"Positive performance shown by PP has been a positive appreciation of investors both domestic and abroad as well," said Iman Rachman as the Director & Head of Investment Banking, PT Mandiri Sekuritas in a press release today.

He said the positive appreciation can also be seen in the enthusiasm and interest from investors in Singapore and Hong Kong during the roadshow of PP held in the two countries. Two leading investment firms, namely Fidelity and Pheim Asset Management, has expressed interest to buy shares of the newest listed company.

"This became a strong indication of confidence among foreign investors on the company's performance and future performance, which for the foreign investors will be allocated approximately 20% of total emissions. "

Besides getting positive response from foreign investors, the shares of the emitters also attract domestic investors, one of a kind is PT Jamsostek.

PP has received an effective statement from Bapepam-LK since January 29th. The company will be listed on February 9th.

With the offering price of IDR560 per share, the company will gather fund about IDR581 billion from the IPO of 21.46% stake, or equivalent to 1.039 billion shares. PP has appointed PT Mandiri Sekuritas, PT Danareksa Sekuritas, and PT DBS Vickers Securities Indonesia as the lead underwriter of the IPO.

Mandiri Sekuritas underwrites portion reach 38.92% of all published shares, Danareksa Sekuritas underwrites as much as 36.63%, and DBS Vickers 20%. The rest of the shares, around 4.45%, underwrites by 28 other securities companies.

The funds which gathered will be used to invest in areas that promise such as energy, construction and property, and also to strengthen the company's working capital, including financing needs of current projects and who will do the Company.

Demand for SR-002 has been reached IDR2.64 trillion

Irvin Avriano A.
for Bisnis Indonesia

Demand for SR-002 has been reached IDR2.64 trillion

JAKARTA: The demand of retail sukuk (SR-002) has been reached IDR2.64 trillion until yesterday evening.

"The demand comes from as much as 5.977 investors by 18 selling agent," Director General Debt Management Office Ministry of Finance Rahmat Waluyanto through short message service last night.

He was hoping that all of selling agent will reach their each targets. For agent that has been already reach their target, he said there is an opportunity to let the comapnies upsizing the targets.

He also said that who ever faster to reach their targets, the government will be give the upsizing target opportunity.

SR-002 coupons is set by the government at a level 8.7% and will mature within the next 3 years. Minimum purchase is limited by the government of IDR5 million, but the government did not set a maximum limit.

Sales of SR-002 made by 18 sales agents began earlier this week until next weekend on 5 February. Seller's agent including 10 banks and 8 securities company. One of the biggest selling agent is PT Bank Mandiri Tbk, a state owned bank.

Wealth Management Group Head Bank Mandiri Inkawan D. Jusi said the demand that came trough his company has reached around IDR648 billion. "[The demand that came trough] Mandiri has been reach 81%," he said through short message service last night.

The company set their indicative target for IDR800 billion, the biggest aiming between other selling agent.

FIF appointed three underwriters for IDR1 trillion bond

FIF appointed three underwriters for IDR1 trillion bond

By M. Tahir Saleh & Irvin Avriano A.
for Bisnis Indonesia

JAKARTA: PT Federal International Finance (FIF) has appointed three securities companies as underwriters for bonds X/2010 worth IDR1 trillion.

President Director FIF Suhartono said the company named PT Kresna Graha Sekurindo Tbk, PT Indo Premier Securities, and PT Mandiri Sekuritas as the underwriters.

"The plan is still opened for more [of securities company as underwriters], but we still explore the options," Suhartono said to Bisnis yesterday.

The company, he added, intends to use the funds to realized finance planning which targeted this year. Based on Bisnis records, the corporation targets this year financing can be realized by Rp15 trillion.

The financing company, mostly for motorcycles Honda brand, was also still has a dependent bond worth IDR2.2 trillion. From these bonds, three series from it worth Rp855 billion will be mature this year.

Based on data from Indonesia Stock Exchange (IDX), the series which will mature is VII/2007 C series worth Rp300 billion due on May 2nd, then IX/2010 A series bonds worth Rp365 billion due on May 4th.

Furthermore the VIII/2008 B series bonds worth Rp190 billion, which matures on May 13th, 2010.

The data also indicate the company plans to use working capital and consumer installment payment financing to pay off the bond obligation. FIF already had ratings from PT Pemeringkat Efek Indonesia (Pefindo) at idAA- levels for the company ratings and all bonds series that been issued.

Marketing Director FIF Margono Tanuwijaya have said the company intended to issue bonds and medium term notes (MTN) worth a total of Rp3 trillion this year as one source of financing.

According Suhartono, the company also recently used the services of PT NISP Sekuritas as the arranger of MTN I/2010 phase III worth Rp300 billion that have been listed this weekend. The company's MTN will mature on January 27th 2012 and the coupon will be paid every 3 months.

"The company intends to use funds from the MTN to funding semester I/2010's needs of financing."

IDX data also indicate as many as 35 companies have listed bonds which will mature this year. Subordinate bonds of PT Bank Rakyat Indonesia Tbk I/2004 worth Rp500 billion and subordinated bonds PT Bank Mayapada Internasional Tbk I/2005 valued at Rp45, 5 billion, also have a call option this year.

Other finance companies which have bonds maturing in 2010 includes PT Summit Oto Finance valued at Rp550 billion, PT Wahana Ottomitra Multiartha Tbk worth Rp385 billion, and PT Astra Sedaya Finance worth at Rp1, 15 trillion.

IPO Garuda will be held in June

BI / bursa

27/01/2010
By Irvin Avriano A.
for Bisnis Indonesia

IPO Garuda will be held in June

JAKARTA: PT Garuda Indonesia Airways to ensure the public records act prime company (initial public offering/IPO) worth up to US$300 million in June-July 2010.

"The point in semester II/2010 to secure, not backward, the preparation is done well," said State Minister for SOE Mustafa Abubakar told the press yesterday.

Garuda Indonesia President Director Emirsyah Satar said that the IPO funds will be used mostly to buy dozens of companies a new aircraft that will use the company.

Some of them are as many as 24 Boeing 737-800NG, each worth US$50 million. A total of 23 of these aircraft will be received by the company with an Airbus 330-200 worth US$80 million.

He explained the number of shares to be released to the public company at the time of the IPO will not be more than 40%.

"Anyway, government still a majority shares owner, but it still depends on the asset valuation that have not been determined, but the due diligence process have done last year, whether legal or assets."

He explained the company is also targeting its net income grew by 20% this year from last year that almost reached Rp1 trillion.

Director of Strategy & IT Garuda Indonesia Elisa Lumbantoruan said the company also plans to conduct roadshows to several cities in Asia, Europe, and the US. For Asia, he said, the company likely will visit Singapore, Hong Kong, Shanghai, and Tokyo.

For Europe, the company will visit the prospective investors in the UK, France, the Netherlands, and Germany.

Elisha added, companies are still worried about the recording of stock in June because it is a global investment manager momentum berlibut summer.

"Fear will slow interest because fund manager who will be the main investors are still on holiday, so there is likely in July or August."

Elisa also said Garuda has not appointed securities companies as an underwriter of even though the company roadshow will be conducted next month.

Emirsyah also said the company will start flights to Europe on June 1 and to the US in 2012.

In the same occasion, Mustafa said the government would encourage other state-owned airline PT Merpati Nusantara Airlines, to increase the airline's flight. According to him, the company still has a huge potential market for domestic flights.

Two Prajogo Pangestu's company issuing bonds: Chandra Asri issue US$230 million, Star Energy to 5 year bonds

BI / bursa

18/1/10
By Irvin Avriano A.
for Bisnis Indonesia

Two Prajogo Pangestu's company issuing bonds: Chandra Asri issue US$230 million, Star Energy to 5 year bonds

JAKARTA: PT Chandra Asri Petrochemical Center will issue bonds of US$230 million of US dollar-denominated next week. The company also added Standard Chartered Plc as underwriter from previously only DBS Group Holdings Ltd and Deutsche Bank AG.

The company will issue the debt through its subsidiary, Altus Capital Pte, which guaranteed by Chandra Asri and PT Styrindo Mono Indonesia.

Based on the Bloomberg sources report yesterday, the company has set a target which is smaller than the initial plan of US$250 million.

Chandra Asri is a leading producer of ethylene and propylene as much as 70%-owned PT Barito Pacific Tbk either directly or indirectly. The owner of Barito Pacific and PT Medco Energi Internasional Tbk, businessman Prajogo Pangestu, also served as the main commissioner Chandra Asri.

Barito Pacific has a stake in Chandra Asri for 62.76% directly and through its subsidiary company's, Marigold Resources Pte Ltd for 7.24%.

Investor Relations Manager Barito Pacific Agustino Sudjono when trying confirmed yet able to provide comment. "We are still studying all aspects of the bond sale plan, including the time for [publishing]," said Agustino as quoted by Bloomberg yesterday.

Besides Chandra Asri, another Prajogo Pangestu company, PT Star Energy, also plans to issue US dollar bonds tenured 5 years. The Company will held meeting with potentials investors in Hong Kong, Singapore, London and the US since last January 27th.

Bloomberg reported Energy Star use service from Barclays Capital, Nomura Holdings Inc and Standard Chartered Plc as the underwriter in the issuance of the bonds. Star Energy's Operational Director Rudi Suparman justify the company will issue US dollar bonds in the 1st quarter 2010.

Corporate bond market is expected to improve with the increase in bond ratings Indonesia earlier this week. Improved ratings were predicted to raise up the issuance of government bonds and corporate Indonesia after reducing debt issuance costs either rupiah or dollar-denominated.

Issuer default ratings og debt long-term Indonesian rupiah-denominated and foreign credit upgraded by Fitch Ratings from the level of BB to BB+ with stable outlook earlier this week.

At the same time, Fitch also raises country ceiling level of Indonesia from BB+ to BBB level and affirm the short-term ratings of foreign-denominated debt at a level B.

Barito buy Chandra Asri shares in 2007 worth US$1.05 billion, equivalent to Rp9, 76 trillion. Barito finance the acquisition with funds from rights issue worth Rp9.16 trillion and the transfer of receivables from Barito Rp697, 5 billion to PT Inti Citra Inter Petrindo.

SR-002's sales reached 68.33% of the target

BI / bursa

18/1/10
By Irvin Avriano A.
for Bisnis Indonesia

SR-002's sales reached 68.33% of the target

JAKARTA: The government is optimistic the sale of government sharia securities (SBSN/sukuk) retail series 002 (SR-002) exceeds the indicative target set at the beginning of IDR3 trillion, because its sales have reached IDR2.05 trillion until last night.

However, the government indicated wouldn't increase the number of target because there are many investment instruments that must be published this year.

"There are some agents have asked upsize [the target] but we have not considered because it has many debt instruments to be issued this year," said Director General of Debt Management Ministry of Finance Rahmat Waluyanto yesterday.

With the purposes of other instruments issuance, he said the indicative target was affirm with the target which announce at the beginning.

"Because the need to provide opportunities for other debt instruments, so a maximum indicative target still IDR3 trillion."

Rahmat explained that the number of demands came from as many as 3.981 retail investors until 19:00 o'clock last night. Rahmat also explained sales of retail sukuk until the second day have reached IDR1.48 trillion, or for 49.33% of the initial target.

SR-002 coupons is set by the government at a level 8.7% and will mature within the next 3 years. Minimum purchase is limited by the government of IDR5 million, but the government did not set a maximum limit.

Sales of SR-002 made by 18 sales agents began earlier this week until next weekend on 5 February. Seller's agent including 10 banks and 8 securities company.

Sharia Financing Director DMO MoF Dahlan Siamat said he was optimistic the result of sale of retail sukuk.

"We believe demand for the sukri [SR-002] will be oversubscribed, some of the benefits that can be enjoyed by investors is the maximum investment that has not been limited."

Wealth Management Group Head PT Bank Mandiri Tbk Inkawan D. Jusi said the company was getting requests around Rp500 billion at the third day of sales, after collect demand as much as Rp360 billion at the second day of sales.

The last amount is equivalent to 62.5% of the initial target set for a state owned bank at the level Rp800 billion.

He explains the factors non-limited on maximum purchases by the government became one of the factors that make the company optimistic will submit upsize target to the government in at least two days ahead.

Comment target achieved by other agents, he's optimistic that SR-002's sales will be same bigger as and potentially even exceed from SR-001. "Within a day or two we'll upsize."

Fitch raise ratings of 8 Indonesian banks

has been released by Bisnis.com
Irvin Avriano A.

for Bisnis Indonesia

Fitch raise ratings of 8 Indonesian banks

JAKARTA (bisnis.com): Fitch Ratings raised the issuer default ratings (IDR) of long-term foreign denominated issued by PT Bank Mandiri Tbk and seven other national banks from the level of BB to BB+.

Based on Fitch's press release which published today, the banks who had its ratings improved are PT Bank Rakyat Indonesia Tbk (BRI), PT Bank Central Asia Tbk (BCA), and PT Bank CIMB Niaga Tbk. Next PT Bank Danamon Indonesia Tbk, PT Bank Internasional Indonesia Tbk (BII), PT Bank OCBC NISP Tbk, PT Bank UOB Buana Tbk, and PT Bank Negara Indonesia Tbk (BNI).

Ranking the following actions for increased long-term debt ratings Indonesian government from level to level of BB and BB+ with stable outlook earlier this week. Improvement ratings have also been made to the three telecommunication operator company yesterday.

"In addition to an increase in ratings of Indonesia, the increase in long-term rating IDR these banks reflect the resilience of financial performance in the difficult operating conditions, especially in the 1st half of 2009," said Tan Lai Peng, director at Fitch's financial institutions group in the press release.

He explained that this action also in line with Fitch's expectations that improvements will continue in those companies given the macro economic outlook which is much stronger in 2010.

According to him, even though the quality of loans has decreased in almost all banks in 2009 and probably will continue in early 2010, the overall implications of control and impact of rising credit costs can be remains absorbed well by the profitability of banks that have been strong enough.

"The expectation of operating conditions which have better condition this year will support the credit quality and future companies' profitability," he added.

Improvement ratings are also made to the foreign-denominated subordinated bonds which issued by three banks namely Bank Mandiri, BII, and Bank Niaga from the level of BB- to BB level.

At the same time, Fitch also raises the support floor of the four-from-the-eight-bank, namely Bank Mandiri, BRI, BCA, and BNI from BB- to BB. On the other hand, basic support ratings of CIMB Niaga and Bank Danamon has been eliminated.

Fitch also set back the debt ratings of foreign-denominated short-term and support ratings of the eight banks.

Pertamina raises net profit target of 63%

Wednesday, 27/01/2010

Pertamina raises net profit target of 63%

by: Irvin Avriano A. & Raydion Subiantoro

JAKARTA (bisnis.com): Shareholders of PT Pertamina agreed to increase the company's net profit target 63% this year to Rp25 trillion from the profit worth Rp17 trillion last year.

SOE (State Owned Enterprise) Minister Mustafa Abubakar said Pertamina AGM that held today also approved the company's capital expenditure (capex) as much as Rp45 trillion.

"The shareholders have agreed to increase the profit targets, but dividends have not been decided, as well as replacement directors, we have to cooling down first, because it only discusses RKAP [the annual working and budget meetings]," Mustafa said to the conference at Borobudur Hotel today.

He explained that the capital expenditure budget will be allocated to many things, some of which are acquisition, performance improvement, and the exploration of new refineries.

According to him, the biggest challenge facing Pertamina is discovering and exploration of geothermal fields because there are some new fields are ready to work with the company.

He explained that the energy state-owned companies are also committed to provide gas for power generation to PT Perusahaan Listrik Negara (PLN) so that the electricity company is guaranteed no shortage of gas supply this year.

SUN auction oversubscribed to 2.17 times, SR-002 has been sold for 49.33% from indicative target

BI / bursa

21/1/10
By Irvin Avriano A.
for Bisnis Indonesia

SUN auction oversubscribed to 2.17 times, SR-002 has been sold for 49.33% from indicative target

JAKARTA: Government bond (surat utang negara/SUN) auction, which was held yesterday, oversubscribed 2.17 times of the indicative target set, or Rp10. 87 trillion from the indicative target of Rp 5 trillion.

Based on the Departement of Finance press release yesterday, the government released four series of SUN worth Rp5.45 trillion to investors. Series that are auctioned are series SPN20110113 which will mature next year, the FR0031 maturing in 2020, the FR0040 maturing in 2025, and the FR0050 maturing in 2038.
Director General of Debt Management Office Department of Finance Rahmat Waluyanto said the results of auction shows some positive sentiment from rating action held by Fitch Ratings.

"The interest for SUN by the foreign investor still high in the middle of correction happens in global forex and stock market," he said in short message service yesterday.

He said the ownership of SUN by the off-shore investors is still high, even grow to a little higher level in the last week.

Data from Department of Finance shows that the foreign ownership in SUN grow to level IDR 113.89 trillion at the last weekend from level IDR113.22 trillion in January 15th.

Economist of PT Bank Danamon Indonesia Tbk Helmi Arman said yield rate that given by government to investors yesterday were still in the range of what he predicted before the auction.

"Almost all the yield given is in range with the prediction, there is not too big spread with the price that formed in the secondary bond market," he said yesterday.

Previously, Helmi predict the series SPN20110113 will be released by the government on yield in the range 6.75% - 6.84%, FR0031 at level 9.65% - 9.81%, FR0040 at the level of 10.46% -10.62%, and FR0050 at the level of 10.75% -10.9%.

Auction results at odds with the predictions thin set Helmi is on SPN20110113 series released by the government to yield 6.85%. The rest, yield released into the predictions.

At the auction, the government is getting requests for series SPN20110113 as much as Rp2, 29 trillion, FR0031 Rp4, 16 trillion, FR0040 Rp2, 86 trillion, and FR0050 Rp1, 55 trillion.

Helmi added bond market conditions are still affected by the euphoria of increased ratings of long-term debt of Indonesian government. Long-term debt ratings of foreign and local denominations Indonesia upgraded by Fitch Ratings from the BB level to BB+ earlier this week.

According to him, the ratings issue will result in positive sentiment in the long term to Indonesian sovereign bond market, and will enough to help ease the pressure of negative sentiment from tightening plan investment policy of US banks and liquidity tightening plan in China.

Retail sukuk
Rahmat said the results of retail sharia bond (surat berharga syariah negara/SBSN/sukuk) 002 series (SR-002) sales for two days was reached IDR1.48 trillion, or equals with 49.33% from the government's indicative target worth IDR3 trillion.

The coupon of SR-002 set in the level 8.7% and will mature in three years in February 10th 2013. The minimum purchase was limited by the government as much as IDR5 million, but they don't set the maximum purchasing limit.

The retail sukuk sells by 18 selling agent starting in Monday January 25th and will end next weekend in February 5th. The selling agent includes the biggest government-owned bank PT Bank Mandiri Tbk and nine other national bank. The marketing also done by eight securities company including state-owned securities company PT Danareksa Sekuritas and PT Bahana Securities.

Director of Sharia Financing Directorate General Debt Management Office DoF Dahlan Siamat said he was optimistic with the marketing result of SR-002. "We believed the sukri [sukuk retail/SR-002] demand will be oversubscribed."

RI Approaches Investment Grade, Minister of Finance said Indonesia Worthy of Having Higher Grade

as published in Bisnis Indonesia daily newspaper

Tuesday, 26/01/2010 00:00 WIB

RI Approaches Investment Grade

Minister of Finance: Indonesia Worthy of Having Higher Grade

JAKARTA: Indonesia only needs to have one more rating to obtain investment grade after Fitch Ratings raises Indonesia's local and foreign currency-denominated long-term grades to BB+ from BB.

International ratings agency Fitch Ratings gives stable outlook. Country ceiling is also improved to BBB- from BB+. In the meantime, short-term grade is steady at B.

"The improved grade shows Indonesia's resiliency against the global financial crisis during 2008-2009, thanks to the country's our improved public financial management and economic fundamentals," said Ai ling Ngiam, Director of Fitch Ratings, yesterday.

The agency also spotlights a decline in public debt ratio to 30% of GDP.

In addition, the improved rating is also attributable to an increase of 28% in foreign exchange reserves to USUS$66 billion. Fitch cites Indonesia as a country recording the eighth largest economic growth (4.6% of GDP).

"There is fiscal flexibility for the government to start long-term ambitious agenda to deal with development problems, such as infrastructure."

However, Fitch emphasizes that the economic improvement measures have to be coupled with investment promotions, industry competitiveness improvement, and efforts to bolster export.

BI Deputy Governor Hartadi A. Sarwono viewed the improved rating would make it easier for Indonesia to reach investment grade level. "The increased rating shows our economic resiliency against external factors."

Another factor leading to the improved grade was Indonesia's surplus balance of payment.

"Our state budget and finance is also healthy," he added.

Higher

Minister of Finance Sri Mulyani Indrawati disclosed it was about time for Fitch to upgrade Indonesia's rating. She continued that Indonesia should instead be given higher rating since its economic condition had been above those of most of developing countries.

Director General of Debt Management at the Department of Finance Rahmat Waluyanto hoped the higher grade would make T-bond yield more efficient and bolster investments on declining risk.

"We can also consider the improved rating a form global recognition to the performance of the fiscal and monetary authorities in managing the State Budget, debt, and monetary stability," he told Bisnis via SMS.

Head of Debt Capital Markets at PT NC Securities Heru Helbianto believed foreign investors' confidence on bonds issued by Indonesia would increase, thus, lowering cost to issue T-bonds.

"This will stimulate the government and companies to seek new financing."

On the other hand, the government was reminded to stay alert for the surging hot money inflow to Indonesia in the short-tem following the improved rating.

Dradjad Hari Wibowo, an economist at the Sustainable Development Indonesia, argued the improved rating would not lead to foreign direct investment increase. Instead, it would trigger short-term, hot money inflow to Indonesia, which created negative effects.

According to him, it would be better if the government could convince China to spend money on infrastructure projects to bolster investments more significantly.

Co-Chairperson of Commercial Development of the Indonesian Automotive Industries Association Jongkie D. Sugiarto disclosed the improved rating would positively affect investment climate in Indonesia.

"First, lenders will be more comfortable. Second, it spells positive signals for the Indonesian economy, and third, investors will be more interested in making investments in Indonesia."

On another note, the Investment Coordinating Board (BKPM) states it is preparing several big projects, such as in West Kalimantan and Riau Islands, most of which are natural resource-based projects.

"Such projects will help bolstering infrastructure facilities in Indonesia to bolster economic growth and development," said Head of BKPM Gita Wirjawan in his press release yesterday.

In the meantime, the National Development Planning Agency (Bappenas) believed GDP in the medium-term would not be eroded by the risks of tighter financial regulations imposed by countries after the crisis.

Lukita Dinarsyah Tuwo, Deputy State Minister/Head of Bappenas, exposed the government would mine domestic economic potential deeper to anticipate risks.

"We are ready to anticipate this. In the 2010-2014 National Medium-term Development Plan, we also inform that the global economic growth outlook may not be as conducive as we expect." (Bisnis/aph/iaa/agi/hta/dea/smu)

Improving Indonesian bond ratings are predicted to encourage the issuance of government and corporate bonds

BI/bursa

26/1/10

By Irvin Avriano A.

for Bisnis Indonesia

JAKARTA: Improving Indonesian bond ratings are predicted to encourage the issuance of government and corporate bonds because the rating action reducing cost of either rupiah or dollar denominated bond issuance.

The long-term ratings of rupiah-denominated and foreign Indonesian bonds upgraded by Fitch Ratings from BB to BB+ level with a stable outlook.

At the same time, Fitch also raises country ceiling level of Indonesia from BB to BBB- level and affirm the short-term ratings of foreign-denominated bond at a level B.

Head of Debt Capital Markets, PT NC Securities Heru Helbianto said the increasing Indonesia ratings affect will began with the increasing of confidence from foreign investor in the debt instruments issued by Indonesian government or Indonesian corporation.

"If it had happened, then the cost of issuance of SUN [surat utang negara/government bonds] would be lower, and will certainly spill over into the determination of corporate bond coupon. It can increase the interest of government and market players for the issuance of new bonds, " he said when contacted by Bisnis yesterday.

Based on Bloomberg data, government bonds and corporate Indonesia bond issuance increased sharply from the level of US$4.2 billion in 2008 to US$8.16 billion last year. This was caused by the financial crisis that led to the lack of bonds issuance during 2008-2009.

Bond analyst from PT Trimegah Securities Tbk Ariawan said the increasing rating of Indonesia also potentials to gain more foreign investors. He thinks that sentiment will be more influential in the long term and potentially reduce the global negative condition, as the short term negative sentiment, which is still happen nowadays.

"It will also reduce the negative sentiment of global markets over the last few weeks, that will make Indonesian bond market will more profitable, especially at auction of SUN tomorrow [today]."

The government plans to auction off four series of SUN which have indicative target at Rp5 trillion today. Ariawan sees that increasing ratings will make investors demand in the auction will increase and booming demand as much as the first auction demand which reached Rp14 trillion.

He said foreign sentiment will only affect the short term because of the US plans to restrict bank investment and tightening liquidity policy in China. The ratings increase, he said, will also make instruments belonging to the developing countries will looks better in the eyes of foreign investors.

"Although not yet signed will be transformed to investment grade category, but has become more attractive than before."

However, the Fund Manager of PT Batavia Prosperindo Aset Manajemen Angky Hendra reminded that the rating still have potential risks. Thus, he said, does not instantly make foreign investors directly invest in corporate bonds or Indonesian government bond.

"Maybe the bonds will be ogled by the investors, but there is also a need to wait until its ratings rose to the level of BBB-, investment grade category. This is because the investment criteria of some foreign institutionals investors are strictly limited. "

Sharia mutual fund's asset under management grow 374.11%

Irvin Avriano A.

for Bisnis Indonesia

Sharia mutual fund's asset under management grow 374.11%

Sharia mutual fund's asset under management booked the biggest growth compared with other types of mutual funds over the past year, for 374.11%, due to the growth of investments return. The growth booked from IDR774.22 billion in the end of 2008 to IDR3,67 trillion last year.

Based on Bapepam-LK data released last weekend, the growth of sharia mutual funds accompanies the growth of funds managed by mutual fund industry for 52.54%.

President Director of PT Batavia Prosperindo Aset Manajemen Lilis Setiadi said funds under management from their sharia products is enhanced by the growth of investment return. That, she said, is caused by the main factor of skyrocketing stock prices from mining and energy sectors.

This, she said, exemplified by the company's sharia mutual fund, Si Dana Saham Syariah, which recorded a growth of funds under management soared due to return over the past year.

She explained that mutual fund returns have the largest growth mutual funds compared to another company's open ended fund.

"Almost all of company's stock fund record return over 100% during 2009, but the greatest of all is sharia fund, which also raises its funds," Lilis said to the press today.

According to her, the Islamic mutual funds use Jakarta Islamic Index (JII) as a reference for investment can be said have two advantages. Both are the increase of increasing composite stock price index (JCI/indeks harga saham gabungan) and the large weight of mining sector.

Head of Marketing PT Danareksa Investment Management Diah Sofiyanti said the company's fund, Danareksa Syariah Berimbang and Danareksa Indeks Syariah, was also grow because the investment return, significantly.

“The main factor is there is no banking sector in the sharia index that reduce the risk from fluctuative bank rates and that demand better financial condition [than usual index], with request of higher DER [debt to equity ratio].”

The growth of sharia fund asset under management was followed by growth of index-mutual-fund which booked at 187.37% and growth of money market fund about 128.81%. The growth of mutual fund unit booked at 14.76%.

Batavia Aset Manajemen targets Rp300 billion from mixed mutual funds

Irvin Avriano A.

for Bisnis Indonesia

Batavia Aset Manajemen targets Rp300 billion from mixed mutual funds

PT Batavia Prosperindo Aset Manajemen targets of IDR200 billion - Rp300 billion from mixed mutual funds Si Dana Batavia CPI for a year. The mutual fund will be offer to investors next month.

President Director of Batavia Aset Manajemen Lilis Setiadi said the product is reserved for employees of a private company and the retirees.

"Essentially we've got an investment commitment of Rp 50 billion from its pension funds of theas an early stage, which has about 7,000 members," he told the press today. These products use the services of Deutsche Bank AG as the custodian.

She explained the composition of the capital market investment products is at 20% - 79% each will be placed on the stocks and money markets instruments.

Lilis explained the company was trying to raise asset under management from around IDR7. 32 trillion at the end of last year to IDR9. 5 trillion at the end of the year. Batavia Aset Manajemen, she added, is also intended to improve the position of funds under management to Rp12, 5 billion in 2011.

She said the company plans to increase the seller's agent number and working with new partners to invest funds through Batavia Asset Management.

At present, he added, companies can raise funds target of IDR500 billion under management from new cooperations. According to him, cooperation was explored with three foreign banks and two insurance companies.

Mega Dana Sri Kehati Harmoni eyes for IDR200 billion, OSKN Capital Protected Fund targets IDR100 billion.

Monday,23/1/10

By Irvin Avriano A.

Bisnis Indonesia

Mega Dana Sri Kehati Harmoni eyes for IDR200 billion, OSKN Capital Protected Fund targets IDR100 billion.

JAKARTA: PT Mega Capital Indonesia eyes for IDR150 billion - IDR200 billion fund from mixed funds Reksa Dana Mega Dana Sri Kehati Harmoni in a year.

Head of Asset Management Mega Capital Sugeng Sugiharto said the company will start to distribute the mutual fund product next month. The product is a result of cooperation from the investment manager company with the Indonesian Biodiversity Foundation (Yayasan Keanekaragaman Hayati Indonesia/Kehati).

"We're more focused the mutual fund for institutional investors who not just want to contribute [at Kehati] but also investing, but do not close the possibility for retail investors," he said when contacted by Bisnis last weekend.

He explained that mutual funds will also use the index SRI Kehati-25 as one of the references to the stock selection of investment products. The mixed funds use the services of PT Bank CIMB Niaga Tbk as a custodian.

Index SRI Kehati launched by Yayasan Kehati and the Indonesia Stock Exchange in June last year. The products, Sugeng continued, is a sign that the company is concentrating on the sale of open-ended mutual funds compared to protected mutual funds.

Open-ended mutual funds are products which new units can be added at any time. Items can be equity funds, mixed, fixed income, index, or exchange-traded fund/ETF.

Protected mutual fund's majority portfolio is allocated to debt instruments and the unit can only be added at the time of bidding.

He predicts the types of open ended products will become increasingly popular this year when the capital market conditions predicted improving. In addition, he said, investors are now more well educated to start looking for riskier product but have a higher return of investment.

He continued that the investment company has just raised money around IDR130 billion from the product Reksa Dana Terproteksi Mega Dana Terproteksi VI. Mega Capital's asset under management of mutual funds, he said, reaching Rp3, 3 trillion at the end of last year and the company is trying to grow it to become IDR6 trillion this year.

Separately, PT Nusadana Aset Manajemen target funds that can raised from protected mutual funds OSKN Capital Protected Fund is around IDR100 billion. The products will mature in 13 months.

President Director of Nusadana Aset Manajemen Rima Noulita Suhaimi said the mutual fund which will managed by the company is being marketed by PT Bank International Indonesia Tbk until January 28th.

Article on confiscation to be applied in the Law on Capital Market

as published in Bisnis Indonesia daily newspaper

Saturday, 23/01/2010 00:00 WIB

Article on confiscation to be applied in the Law on Capital Market

JAKARTA: The Capital Market and Finance Institutions Supervisory Agency (Badan Pengawas Pasar Modal dan Lembaga Keuangan/Bapepam-LK) plans to include the clause on asset confiscation from the bourse convict in the amendment of law on capital market.

The authority of capital market regretted the poor sanction given by court to some violators by simply demanding the graft fund without asset confiscation as part of their responsibility.

Chief of Bapepam-LK Fuad Rahmany said the capital market crime sanction referring to the Code of Crime fails to give deterrent effect to the convicts.

"There is convict who is simply sentenced 18 months without any confiscation. We will change this. We want to impose higher sanction to the capital market crime. Is it possible the court verdict refers to the capital market law here," he said yesterday.

Fuad admitted the weak sanction mechanism to the capital market violator is due to the less rigid sanction regulation for the perpetrator that had been brought to court.

The amendment is expectedly included in the capital market law revision by Bapepam-LK so as to minimize crime in the capital market.

"We will later make it more detail. It is not only harsh sanction but also the confiscation of the perpetrator assets under the capital market Law. Now, the Law does not stipulate any asset confiscation clause but rather from the other Law."

But Fuad could not set any target of the revision of Law on capital market.

"Just wait and see. We don't know when it finishes but the preparation is underway."

Bapepam also plans to have regulation on cross border offering in the prospectus regulation scheme in the IPO.

Based on the issued regulation draft this week, the capital market authority has designed the early reference for the domestic emitter planning for stock listing in the Asean. The regulation also enables overseas emitter to list it in the Indonesian bourse.

Some clauses in the regulation here include the transparence addressed on the rights issue, dissenting offering price and stock book value, and exchange rate. (Bisnis/ags/iaa)

The coupon sukuk retail on 002 series (SR-002) set at 8.7% level

BI

Irvin Avriano A.

Bisnis Indonesia

The coupon SR-002 set at 8.7% level

JAKARTA (Bisnis.com): The government set the coupon on state securities sharia (SBSN/sukuk) retail on 002 series rupiah-denominated (SR-002) at 8.7% level. The retail sukuk will mature in 3 years.

This was revealed in a Department of Finance press release received by the Bisnis.com today.

Based from several sources, the coupon was set yesterday by the Directorate General of Debt Office Management officials. But, the announcement itself still waiting for notification by the officials themselves to the Minister of Finance.

The government set the indicative target for the retail sukuk (SR-002) as much as Rp3 trillion even though the seller agent who undertakes the marketing of debt set the minimum limit at the level of Rp4.3 trillion.

Last week, the government has issue another SBSN by auction system with the results of Rp950 billion, lower than the indicative target of Rp1 trillion which set before.

Next week, the government intended to auction off four series of government debt (surat utang negara/SUN) which have indicative targeted as much as Rp5 trillion.

The auction held routine by the government with the gross issuance target around Rp170 trillion this year, bigger than the last year indicative target about Rp144 trillion.

Head of Debt Research PT Danareksa Sekuritas Budi Susanto said that the coupon have include the premium for liquidity and sukuk risk.

The yield of similar maturity debt in the secondary market, FR0033, stays at level 7.89% today. That makes the spread stands at around 72 basis points (bps). The value of 100 bps is equal with 1%.

It means the retail sukuk is less liquid in the secondary market. It also shows that the syari'a instrument have less trading in the capital market because the market player intended to hold until maturity the debt instrument.

"But, all the risk have been include in the coupon that higher than retail bond [obligasi negara ritel/ORI] that usually added about 50 bps."

Indonesia potentially cancels Asean Linkage participation

as published in Bisnis Indonesia daily newspaper

Friday, 22/01/2010 00:00 WIB

Indonesia potentially cancels Asean Linkage participation

JAKARTA: Capital Market and Finance Institution Supervisory Agency (Badan Pengawas Pasar Modal dan Lembaga Keuangan/Bapepam-LK) opens chance to delay or even cancel the participation of Indonesia in the Asean Stock Linkage and Asean Economic Community.

"If the result of our studies only gives less benefit for Indonesia, we must not follow them," said Chief of Bapepam-LK Ahmad Fuad Rahmany to Bisnis yesterday.

The already signed deal made by Bapepam-LK and the Asean's bourse authority and capital market community agrees the implementation of Asean Linkage by 2013 and Asean Economic Community by 2015.

The domestic capital market players and the authority have made preparation so it could barely be deemed that the discourse for schedule postponement or cancellation was due to the lacking of preparation.

This issue was once discussed in visit of the several Asean bourse authority this week.

The authority will not decide to take part in a community if it does not benefit Indonesia.

"We are an enormous country with the largest potential among the other countries (of the community). If there will be no benefit for us, the government could refute the plan as stipulated by the agreement."

But Fuad could not provide the profit and loss details if Indonesia involves in the two agreements here.

Information Technology Director of IDX Adikin Basirun, who responsible for the Asean cooperation, said there is clause referring to the preparedness of the members in the Asean Linkage. That is also stipulated in the clause of the Asean Economic Community.

"But if market is not ready, and not well prepared from now on, when will it be ready? We always try to increase the competitiveness of market players and authority higher."

So far Indonesia is still lagged behind by some initiatives if compared to the Asean or Asia countries. So, the capital market and bourse authorities have started to apply some more rigid rules and restrict the quality of market players.

Committee Coordinator of Chairman of the Indonesian Securities Company Association (Asosiasi Perusahaan Efek Indonesia/APEI) Lily Widjaja agreed with the analysis and intention of Fuad Rahmany.

The authority and capital market players shold consider the preparedness and condition prior to join the free trade area. "It should consider the benefit and weakness prior to the decision making." (Bisnis/iaa)

Bapepam-LK probing Manulife Aset Manajemen

Tuesday, 19/01/2010 00:00 WIB

Bapepam-LK probing Manulife Aset Manajemen

JAKARTA: The Capital Market and Finance Institution Supervisory Agency (Bapepam-LK) has probed the resignation reason of two directors of PT Manulife Aset Manajemen Indonesia.

The directors resignation has caused the company fail to sell new unit of mutual fund.

"We are probing them and in case they are found guilty we will bring it to the PP bureau (investigation bureau)," said investment management bureau chief of

Bapepam-LK Djoko Hendratto to Bisnis last week.

Manulife Aset Manajemen has carried the mutual fund product sale suspension since early January due to the resignation of two out of three boards of directors.

Those two resigned directors include Denny Rizal Thaher as the president director and Li Ming Suryaputra as director. The only active director now is Raymond Gin.

Djoko said the capital market authority will provide permit for mutual fund unit sales to the company is given due to the fact that one of the resigned directors, Li Ming suryaputra, is willing to stay up to unlimited time.

The sanction given to Manulife was based on the Law No. 40/2007 on the obligatorily two directors for a limited company with public wealth management.

The other regulation for the sanction imposition is Bapepam regulation No.V.A.1 on the securities company permit stipulating one of the directors should have an investment deputy manager certification (WMI.

Some resources said Li Ming will work for Manulife up to end of the month or next month at the latest.

Djoko said Li Ming is likely only stay up to end of the month or next month.

If the company has not got the new directors up to that period, the permit for new unit of mutual fund sales will be potentially revoked.

"We only enforce regulation and we only call for commitment from one of the directors to stay on his own willingness. When the deadline is over, we will revoke again."

The authority opens chances for the company to propose new candidate of directors.

Chief commissioner of Manulife Aset Manajemen David Beynon, Director of Ma-nulife Aset Ma-na-je-men Raymond Gin, and Director of Manulife Aset Ma-najemen Li Ming Sur-yaputra were not available for comment yesterday. (Bisnis/iaa)

IDX revoked CP Prima suspension: Negotiation still underway with the bond investors

Tuesday, 19/01/2010 00:00 WIB

IDX revoked CP Prima suspension: Negotiation still underway with the bond investors

JAKARTA: The Indonesia Stock Exchange (IDX) revoked the suspension of PT Central Proteinaprima Tbk (CP Prima) stock trading upon considering the explanation given by the company last week.

IDX corporate assessment director Eddy Sugito said the revoked suspension was done by the bourse authority yesterday so the company could take the trade today.

The suspension of CP Prima happened after the plummet of credit and global bond rating for the subsidiary firm, Blue Ocean Resources Pte Ltd, as from two rating companies and media coverage in some newspaper on the issue.

Fitch Ratings cut down the rating of long term debt in foreign currency denomination from CC to C. all emitter ratings are under the special supervision with rating watch negative (RWN). Moody's Investors Service also cut the rating of CP Prima from Caal to Ca level with negative prospect.

The rating plummet happened due to the unpaid bond coupon with the maturity on December 28, 2009, worth US$17.9 million as from the outstanding US$325 million.

Eddy said the information given by emitter through the public expose last week was enough to provide chance for the corporate investor and capital market player to set their option.

"We think with the public expose, it was adequate despite the uncertainty. However there was explanation given by the company acceptable to the investors," he said yesterday.

The suspension was revoked by the bourse authority today as the company had given explanation on the debt and bonds of the subsidiary firm last week and thus IDX could discuss about it yesterday.

"We could not coordinate yet with the other part such as from the trade directorate as we could just meet and discuss it yesterday."

In the public expose last week, Corporate Secretary of CP Prima Albert Sebastian said the company got extended debt payment from BNI. The payment of IDR390.07 billion was extended up to June 22, 2010 from September 20, 2009.

The company will either called for exemption from the other domestic bank creditor with cross default clause and other clauses. Albert said the company still believed to have up to 30 days from the due date and thus it might not be deemed default yet.

Eddy said the bourse authority could barely force the emitter to provide details of each query as it depends on the preparedness of the company alone.

The bourse also acknowledges if the company has its own consideration so that it could hardly explain the negotiation with the bond investors and the restructuring plan of the company.

When asked, Marketing and communication director of CP Prima Rizal I. Shahab and Finance Director of CP Prima Gunawan Taslim, Albert Sebastian, including Corporate Communication Manager of CP Prima Fajar Reksoprodjo were not available last night.

The stock price stays at the level of IDR60 per share unit as from the suspended on January 7. (Bisnis/iaa)

Bond emissions in the 2009 beyond stock: Danareksa Sekuritas leads bond underwriting market

as published in Bisnis Indonesia daily newspaper

Monday, 18/01/2010

Bond emissions in the 2009 beyond stock: Danareksa Sekuritas leads bond underwriting market

JAKARTA: Bond securities underwriting business rose 108.29% during the past year, beat the underwriting for shares that fell as much as 69.8%.

Bloomberg's data showed the value of data of stock offering underwriting in the capital market only reached Rp16, 15 trillion in 2009, fell 33.44% compared to the position in 2008 that reach Rp24, 27 trillion.

Shares underwriting which covers theinitial public offering (IPO) and underwriting of buying and selling shares of large-scale (block trading) through the crossing transaction.

If those number added with the issuance of new shares from rights issue, the value of the stock underwriting activity in a Indonesia Stock Exchange (IDX/Bursa Efek Indonesia) reached Rp20,58 trillion or lower as much as 69.8% from the value of the underwriting in 2008 that reach Rp68, 14 trillion.

But the shares underwriting numbers still a contrast with the value of bond underwriting which soared 108.29% to Rp34, 67 trillion last year, from the value of emissions Rp16, 65 trillion in 2008.

President Director of PT Pemeringkat Efek Indonesia (Pefindo) Kahlil Rowter said the condition showed private companies tend to choose selling debt securities as the main financing options last year, compared with the emission of shares.

"Many factors affect such as interest rates and the large amount of bonds maturing in 2009 which needs to be refund again [refinancing]. But in general, the bond market last year was restored and strengthened in the second half," he said to Bisnis yesterday.

Interest rates last year was recorded down 275 basis points, to 6.5% in December 2009. Hunting action by foreign investors to government bond securities (surat utang negara/SUN) from developing countries in the middle of the recovery that protracted last year leads push down of yield of government bond and private bonds to fell in the low level.

Bisnis notes yield from 5 years government bond stands at the level of 11.8% in the early 2009 and touched the lowest point of 8.98% in the last year.

The increase in emissions also occur in new markets bonds, islamic bond securities, sukuk, with a value of emissions in 2009 for about Rp20, 17 trillion, grows 42.75% from the positions worth Rp14.13 trillion in 2008.

Bond emission values in the 2009 have exceeded that was recorded in 2007 for Rp31, 27 trillion who soars before the global financial recession hit the world. That figures include the U.S. dollar bonds denominated who risen by Indonesian companies which listed in foreign countries.

PT Danareksa Sekuritas recorded lead the positions as rupiah bond underwriter, who handling the sale of bonds worth Rp7, 4 trillion from 35 issuers. That number represents a 21.3% share of the national bond market.

Stock market

Analyst PT GMT Asset Management Niko Simatupang said the falling of stock emission rate activity last year indirectly is the impact of high global stock market fluctuations.

"The capital owners choose to invest in save haven instrument who had of lower risk than stocks, that could be bonds or fixed income instruments. Not surprisingly, demands for bonds emissions flood in the 2009," he explained.

In the midst of such conditions, Bloomberg noted the increased activity of additional shares emission with exponential jump from Rp297 billion to Rp12, 3 trillion, especially from a large value transactions (block trades).

The value of shares of emissions in 2009 were recorded only Rp16, 15 trillion, with the number of listed companies 19 companies, down 5.26% from the 2008 position of 18 issuers. Emission of new shares (IPO) are done by 13 companies worth Rp3, 85 trillion, fell 84% from the IPO in 2008 for Rp24 trillion. (arif.gunawan@bisnis.co.id/redaksi@bisnis.co.id)

Nurhaida transformed

Saturday, 16 January 2010

Nurhaida transformed

PAMULANG: The new looks of Securities Transaction and Institution Bureau Chief of Bapepam-LK Nurhaida surprized many people in The Capital Market and Financial Institution Supervisory Agency (Badan Pengawas Pasar Modal dan Lembaga Keuangan/Bapepam-LK).

She answer the questions about the transformation of looks which happen in just one week ago. Many of her colleagues surprized when saw her in a new-style long dress and a jilbab which cover her whole head. Nurhaida use to be not wearing jilbab and long dress.

Even his relatives who served as a Bapepam-LK official, Investment Management Bureau Chief of Bapepam-LK Djoko Hendratto, just saw her in a new looks last weekend.

"Look at her, does she looks pretty in the new style? Even I don't recognize her in first look," says Djoko to Nurhaida in front of the reporters at the Bapepam-LK office in Lapangan Banteng, Jakarta. Nurhaida, Djoko, and three others of Bapepam-LK's officials came to reporter's celebration of a new press room.

The other officials who attend the event are Real Sector Corporate Finance Assessment Bureau Chief of Bapepam-LK Anis Baridwan, Service Sector Corporate Finance Assessment Bureau Chief of Bapepam-LK Noor Rachman, and Investigation Bureau Chief of Bapepam-LK Sarjito. Chairman of Bapepam-LK Ahmad Fuad Rahmany can't attend because he had a flight to Surabaya.

The event itself held by reporters' own budget, but it raised donation from many sympathizers, including Djoko Hendratto for the fresh fruit. The celebration ceremony start with pray and finished with Cone Yellow Rice Cutting (Potong Tumpeng).

North Sulawesi noted an increase in tourist visits 20%

as published in Bisnis Indonesia website

Wednesday, 06/01/2010 18:33 WIB

North Sulawesi noted an increase in tourist visits 20%

by: Irvin Avriano Arief

MANADO (Bisnis.com): The number of tourists who visit the North Sulawesi region increased by 20% to 100,000 tourists last year following a number of international events and programs held in the province, from the previous 30,000-40,000 of tourists.

Governor of North Sulawesi Sinyo Harry Sarundajang said some event that held in his region are World Ocean Conference (WOC), the Coral Triangle Initiative (CTI) Summit, the Sail Bunaken program, and the election of Manado to became one of the main destination of Visit Indonesia Year 2010 program.

"And the show was just held in May last year, but the increase has happened so big," he told the press at the inauguration of three new aircraft of Wings Air in Manado, today.

According to him, Sam Ratulangi airport will be the development and centralization of activities of Wings Air, Lion Air's subsidiary in Manado. The centralization will also increasingly provide new opportunities to become the gate area for tourists from East Asia and Asia Pacific to come to Indonesia.

Previously, Lion Air President Director Rusdi Kirana, who also serves as commissioner of Wings Air, said the company will focus its activities in Manado Wings Air by moving operations centers, maintenance, and training company formerly based in Jakarta.

According to him, the potential of the area as a liaison between cities in the eastern part of Indonesia or between foreign countries and eastern parts of Indonesia, is still very large.

"We want to open the gaet wider for tourists from East Asia and Asia Pacific who want to Indonesia through North Sulawesi, which benefited from its strategic position." (Yn)

Lion Air to Buy 10 Wide-Bodied Airplanes: Manado to Become Wings Hub to Eastern Indonesia

the photograph of the newest Wings Air ATR 72-500 when take the first flight to Manado

the article as published in Bisnis Indonesia daily newspaper

Wednesday, 06/01/2010 00:00 WIB

Lion Air to Buy 10 Wide-Bodied Airplanes: Manado to Become Wings Hub to Eastern Indonesia

JAKARTA: Lion Air will bring ten wide-bodied airplanes starting in the second semester this year to support flight expansion to East Asia and Australia.

President Director of PT Lion Mentari Airlines Rusdi Kirana said the airline was interested in importing wide-bodied Boeing 777-200ER or Airbus A330-300 airplanes.

"We will buy the airplanes with loans from financial institutions," he said before meeting with Minister of Transportation Freddy Numberi yesterday.

He said the wide-bodied airplanes would be used to fly to Australia and countries in East Asia, such as South Korea, Japab, and China. "We expect the evaluation of the destination cities will be completed."

Rusdi confirmed the airplanes would be new ones, unlike used Boeing 747-400 airplane operated to serve Jakarta-Jeddah route. "We buy new airplanes since Lion wants to go international."

After the airplanes arrived, he said, Lion would automatically replace the two B747-400 airplanes.

He revealed Lion would fly Jeddah route seven times per week starting in February 2010, up from the current twice a week, thanks to landing permits given by the Kingdom of Saudi Arabia.

General Director of Lion Air Edward Sirait disclosed the airline was studying the size of aviation markets in several destination cities in Far East, especially in China and South Korea.

The flight to Far East is considered potential due to high economic growth in the region despite the financial crisis.

ATR armada

Rusdi added the airline would also bring 30 units of ATR 72-500 airplanes with financial support from the largest financial firm in France, BNP Paribas.

According to the plan, the 30 new airplanes will be operated by Wings Air, a subsidiary of Lion Air, and be based at Sam Ratulangi airport, Manado, North Sulawesi.

Today, Rusdi said, he would officially welcome the arrival of three units of ATR 72-500 airplanes in Manado as part of the procurement of 30 airplanes gradually in the next two years.

"The airplanes will be operated in the eastern Indonesia with Manado as the hub."

Routes that Wings Air is eyeing in the eastern Indonesia are to Mamuju, Nabire, and Wamena, and in the western Indonesia, such as Medan-Gunung Sitoli route.

Operational Director of Wings Air Captain Redi Irawan said this year the airline would receive 10 ATR 72-500 airplanes including the current three airplanes and five more airplanes next year. "We hope the two other airplanes can be shipped by February," he said in Manado yesterday.

The first and second airplanes are received at the end of December 2009 and the third one yesterday.

ATR 72-500 airplane has the latest technology using six propellers for each engine, up from previous four propellers. (Bisnis/hwi/iaa)