XL stock sell price IDR3,300: Axiata prepares greenshoe with soaring demand

Monday, 29/03/2010 00:00 WIB

XL stock sell price IDR3,300: Axiata prepares greenshoe with soaring demand

Irvin Avriano A.

for Bisnis Indonesia

JAKARTA: Axiata Group Berhad tapped IDR5.05 trillion proceeds from the divestment of 1.53 billion shares or 18.2 percent shares of PT XL Axiata Tbk, the subsidiary firm, with a par value of IDR3,300.

Axiata, with 86.5 percent ownership at XL through Indocel Holding Sdn Bhd, finalized the secondary offering process last week. The offering process will be closed with crossing today.

President Director of XL Hasnul Su-hai-mi said the stock sell price was defined at top level of the offering price ranging form IDR3,000- 3,300. Besides, the demand from investors has increased 3-4 fold or 4.59-6.12 billion shares.

The sale price was discounted 6 percent if compared to XL stock price at market of IDR3,500 following the sharp rise of 4.48 percent or IDR150 last Friday. Thus, AXiata raked up IDR5.05 trillion proceeds or 1.83-2/02 billion ringgit.

"With the soaring demand, Axiata shareholders prioritized local buyers with higher allotment or 50-80 percent (as from the offered stocks)," he said in press conference on the stock sales process yesterday.

Hasnul added to maintain XL stock price following secondary offering, Axiata also prepared 1.8 percent greenshoe in the next three days. If necessary, the option will be executed by Goldmand Sachs (Singapore) Pte, as the initial buyer.

In the offering Axiata is assisted by CIMB Invest-ment Bank Berhad, PT Mandiri Se-kuritas, J.P. Morgan Securities Ltd, and Morgan Stanley Services Ltd.

Hasnul the corporate action is not public offering so that it was only offered to less than 49 domestic investors. With the scheme, the execution did not refer to the capital market regulation on public offering.

He failed to detail the number of domestic and foreign investors winning over the XL stock offering. The allotment of new stocks is scheduled today.

In addition to Jakarta, Axiata also offered XL stock to investors in Singapore, Hong Kong, New York, Washington, Boston, London, and Edinburgh on the secondary offering roadshow.

He claimed to have not been informed about the allocation scheme of the proceeds by the shareholders. But he is sure the divestment here will increase the public ownership portion which then maximize the XL shares at IDX.

"Thus, we believe and expect the underwriter could allocate our shares to the active investors in the bourse," he said.

Wit the divestment, the public increased their possession as from 0.2 percent into 18.2 percent. The other shareholders, in addition public and Indocel, include Emirates Telecommunications Corporation (Etisalat) with 13.30 percent.

President and Chief Executive Officer Axiata Dato' Sri Jamaludin Ibrahim in statement said the soaring public ownership portion is expected to grow the equity liquidity and fair pricing of XL stocks.

So far, many analysts avoid reviewing XL performance due to the less significant number of XL stocks so as not to reflect fair pricing.

Analyst of JPMorgan Securities Ltd Tim Storey in the February 13 research, it sharply swelled the XL stock price target into IDR2,950 from IDR2,850. He projected the revenue of XL of IDR16.21 trilion by end of the year and IDR18.48 trillion in 2011.

"We believe the soaring XL revenue has been reflected from the mounting stock price of 45 percent since early this year." (Bisnis/iaa/pul)

Matahari Putra Prima give investors sweetener 0.4%

Matahari Putra Prima give investors sweetener 0.4%

Monday, 29/03/2010 13:34:04 WIB

Oleh: Irvin Avriano A.

for Bisnis Indonesia

JAKARTA (Bisnis.com): General Meeting of bondholders (rapat umum pemegang obligasi/RUPO) PT Matahari Putra Prima Tbk (MPP) bond III/2009 which was held this morning decided to pay additional payment of funds (sweetener) for 0.4% for each investor's investment. The payment will be given in a single payment.

"The decision was unanimous, all of them [investors] decided to hold bonds to maturity, none of them wants to give to be bought back," said an investor who met after the meeting this afternoon.

He said the RUPO was running not tough and relatively smoothly. Another investor said the unanimous decision was made by as much as IDR279 bio from the total value of outstanding bonds for IDR302 bio, or as much as 92.38%.

"Some consideration [investors] are due to the high coupons and their good track record that never failed to pay-off."

MPP Commissioner Adrianus Mooy when met by the press outside the lobby of the Ritz-Carlton Hotel Pacific Place, place where the RUPO was held this afternoon, didn't want to give a detail statement, "RUPO had just ended."

He also was not willing to explain the results of the RUPO that just been held. General meeting of MPP's ijara sukuk holders (sukuk) I/2009, he added, will be held at the same place.

Both meetings were requested approval of holders of rupiah-denominated debt securities issued by MPP to buy back (by a buy options). Purchase and redemption of debt securities is one partof the intended use of funds to be obtained from the sale of PT Matahari Department Store Tbk (MDS) shares, the subsidiary of MPP.

MPP and its subsidiaries was part of Lippo Group, a conglomeration of Michael Riyadi and his beneficiary James Riyadi.

Until this news was made, the company management can not confirmed because the meetings room and its lobby of the hotel where the meeting is held closed for the public.

In the sale of subsidiary's shares to PT Meadow Indonesia worth a total of IDR7.16 trio, MPP will get cash IDR5.3 trio. The cash funds were allocated by the corporation to pay off debt and their bonds as much as IDR3.4 trio.

The rest is allocated for the payment of business development for IDR900 bio and IDR1 trio as dividends to the company shareholders. Currently, the total value of bonds II/2009 outstanding MPP for IDR302 bio, which consists of two tranches.

Tranches A MPP conventional bonds that will mature in 2012 worth IDR250 bio, while the value of B tranches will mature in 2014 for IDR52 bio. (Fh)

Repo report to be mandatory: Transaction value and investor basis to be upsized

Friday, 26/03/2010 00:00 WIB

Repo report to be mandatory: Transaction value and investor basis to be upsized

JAKARTA: The Capital Market and Finance Institution Supervisory Agency (Bapepam-LK), capital market player, and bank plan to oblige the report of repurchase agreement for equity and bonds.

The policy will eliminate repo practice done over the counter (OTC). However, the scheme has yet to focus on special scheme of repo report.

Chief of Bapepam-LK Ahmad Fuad Rahmany said now the work group of formation of ge-neral master repurchase agreement (GMRA) has been established. The group has formulated the recommendation to make it reference for domestic repo transaction.

"Later it will be regulated for the report. As the form follows international standard, the transaction will be more organized," he said to press yesterday.

The frame here will become a special recommendation from Indonesia for the international standard practice stipulated in the master repurchase agreement of the International Swaps and Derivatives Association Inc (ISDA).

Based on the association sites, the international repo scheme becomes the general reference of transaction in the world. But the practice of each country need additional special attachment.

The attachment from Indonesia will help ease overseas investors to do domestic repo.

GMRA talk was once the last year agenda as it defined the legal aspect of equity repurchase agreement which was once blamed for being one of the stock market collapse in 2008.

However, the authority considered repo as the facility given to the customers as long as it is benefiting and the measured risk of the bourse has not banned.

President Director of PT HD Capital Tbk Antony Kristanto, one of the working group members of repo scheme formation, said the obligation should be regulated in the GMRA.

"The point is that it must be reported so as not to become like now with unclear obligation of the repo players and the trade system. If it is clear, it becomes observable and useful to every capital market or banking players."

Working group of repo scheme talk includes the Indonesai Securities Companies Association (APEI), self regulatory organization (SRO) and some associations like the State Bonds Trader Associtaion (Himadsun), and the Indonesian Custodian Bank Association (ABKI).

Antony said the company has formulated the rule of the game and code of conduct of the other repo action.

But he mentioned the realization and implementation will happen next year as it needs approval from international institution with repo transaction authority.

"With the existing permit or recognition from them, overseas investors that will have domestic investment could understand the rule of the game domestically, which is similar to the other country as there has been GMRA," said Antony.

Trade and bourse member regulation director of IDX Wan Wei Yiong admitted currently the bourse authority does not oblige the report of each repo transaction at capital market. The report is applicable for those with underlying asset of equity and bonds.

"Now most repo report is in corporate bonds and only government bonds. that is not much as there is no mandatory reporting."

Debt management director general Rahmat Waluyanto once said the government expected the GMRA could increase the transaction value that could also use SUN as the transaction basis.

That is one of the way to develop local investor basis by suitable and relevant instrument issuance.

"It is necessary to develop repo market (SUN). Now many repo lacks of optimum use. GMRA plans to live up the market due to the more various SUN instrument," he said.

Transactiona nd securities institution bureau chief of Bapepam-LK Nurhaida has just said one of the points to be regulated in the GMRA is the clause of default of the repo transaction.

Nurhaida said the clause of chain repo will not be included in the GMRA. But if it is attached, it will be included into other regulation.

Director of PT Kustodian Sentral Efek Indonesia (KSEI) Trisnadi Yulrisman said the GMRA here does not aim to have self anticipation of the implementation of single investor identification (SID) and straight through processing (STP) at the bourse next year. "It is different (from SID or STP) for the joint interest of the industry."

Trisndi said in the repo regulation, bourse member does not need reporting as the transaction has been united into the bourse and is automatically reported. But for the other repo players such as non bourse member securities and bank, that should be reported. "But that is not fixed yeast as it is still a plan." (Bisnis/iaa/faa)

Federal Finance's IDR1 trio bond get pre-effective statement

Federal Finance's IDR1 trio bond get pre-effective statement

Thursday, 25/03/2010 19:33:19 WIB

Oleh: Irvin Avriano A.

for Bisnis Indonesia

JAKARTA (Bisnis.com): Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) give a pre-effective statement to the issuance of bonds PT Federal International Finance totaling IDR1 trio today.

Service Sector Corporate Financial Assessment Bureau Chief of Bapepam-LK Noor Rachman said the new praefektif statement that has given today to the bond issuance will let the issuance process continues into the bidding stage.

"They've been able to advertise, market, and bookbuilding [forming price] its bonds starting tomorrow," he said in the Bapepam-LK office tonight.

Based on Bisnis.com records, registration statement documents of the corporate bonds have received by Bapepam-LK since February 18th. The Company has appointed PT Mandiri Sekuritas, PT Danareksa Sekuritas, PT Kresna Graha Sekurindo Tbk, and PT Indo Premier Securities as the underwriter for the issuance.

The company is possible to increase the issuance from IDR1 trio to IDR1,5 trio if the coupon, the investor demand, and the market conditions assessed good by the emitter.

The leasing company also intend to issue medium-term notes (MTN) wirth IDR700 bio this year as part of a long-term MTN issuance program totaling IDR2 trillion.

Throughout 2009, the company has issued MTN worth IDR1 trillion, and in January the company had issued IDR300 billion of MTN.

Hong Kong Investors Interested in Islamic Instruments

Thursday, 25/03/2010 00:00 WIB

Hong Kong investors interested in Indonesian Islamic instruments

Irvin Avriano A.

for Bisnis Indonesia

JAKARTA: Several Hong Kong investors are interested in investing in the domestic Islamic capital market instruments this year as they have expressed during their visit to the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) office.

"They are interested in domestic capital market investment instruments. They have been asking questions about Islamic instruments and tell us they will invite investors here at the next meeting," informed Accounting Standard and Disclosure Bureau Chief at Bapepam-LK Etty Retno Wulandari to Bisnis yesterday.

She told it after a meeting between several Bapepam officials, including herself, and Financial Secretary Special Administration Region (SAR) of Hong Kong John Tsang.

However, she had not been able to tell for sure when the next meeting would be held. The Accounting and Transparency Standard Bureau at Bapepam-LK supervises Islamic securities regulations and implementation in the capital market.

On the same occasion, Chairperson of Bapepam-LK Ahmad Fuad Rahmany disclosed Hong Kong and China currently have a huge investor base of 16,000 investors, creating big opportunities for Indonesia to market its capital market investment product.

"They are interested in Islamic instruments in Indonesia due to our potential."

Separately, Real Sector Companies Financial Assessment Bureau Chief of Bapepam-LK Anis Baridwan regretted the lack of Islamic investment instrument issuance by issuers or other capital market players.

He further called for product variation so that Islamic instruments would have better sales value and better chance to be eyed by investors.

"As long as there are no regulations violated, product variation will be good to attract interests."

He explained compared to other countries, Indonesia is one of the countries most ready in terms of legislations and regulations to accept product variant, posing smaller risk to argument about Islamic value.

Data by Bapepam-LK showed Islamic instrument currently only represented 3% of IDR3,850 trillion's worth of conventional instruments consisting of insurance, banking product, T-notes, corporate bond, and mutual fund products.

Anis Baridwan added Bapepam would encourage market players to maximize Islamic securities.

President Director of PT Financorpindo Nusa Edwin Sinaga forecasted Islamic securities would have better growth ahead. "Evaluations and research show the potential amount of fund placed in Islamic securities is huge, but the number of products is instead still small." (Bisnis/iaa)

Latinusa Eyeing IDR1.6 Trillion in Sales

Thursday 25/03/2010 00:00 WIB

Latinusa Eyeing IDR1.6 Trillion in Sales

JAKARTA: PT Pelat Timah Nusantara Tbk (Latinusa) targets sales for this year at IDR1.5 trillion-IDR1.6 trillion, rising 35.59% from last year's IDR1.18 trillion.

In the meantime, net profit is targeted at IDR91 billion, soaring 192.06% from last year's target of IDR31.5 billion.

Latinusa Financial Director Erwin revealed the subsidiary of PT Krakatau Steel last year recorded IDR41.99 billion in net profit, surpassing the target. Thanks to economic condition improvement, the company was even forecasted to book IDR31.5 billion in net profit in the first quarter of 2010 or the same as the net profit target for 2009.

"Last year, there were the effects of the global crisis in 2008 and the factor of raw material shortage. This year, such a factor of raw material shortage will no longer exist as we have secured raw material supply from our Japanese shareholders," told Erwin after the annual shareholders general meeting yesterday.

The Japanese shareholders are the consortium of Nippon Steel and three other companies, which are committed to securing raw material supply for Latinusa. Previously, Latinusa only relied on Krakatau Steel for supply.

The four Japanese companies bought a 55% stake in Latinusa from Krakatau Steel (KS) last year. The finalization of the transaction took place on December 14 or the same time the company made its initial public offering.

Pay dividend

Erwin added of last year's profit, Latinusa will pay a total dividend of IDR15.13 billion or IDR6 per share on May 5, representing 36.05% of the company's 2009 net profit. The dividend payment was decided at the annual shareholders general meeting yesterday.

The dividend payment boosted Latinusa share (NIKL) price yesterday by 11.11% to IDR300 yesterday, creating a market cap of IDR757 billion.

The general meeting also decided to add one director, making the board of directors to have five directors following the creation of a new position of vice-president director, which is currently held by Yosimitsu Honda.

The company, he continued, would also allocate IDR40 billion-IDR70 billion as capital expenditure this year. The capex, raised from the initial public offering (IPO), would be used to pay for down payment for revitalization project and to bolster the company's plant machinery capacity.

Therefore, the company currently is selecting the contractor to bolster its tin plate capacity from 130,000 tons per annum to 160,000 tons per annum.

So far, the company has been able to secure sales contracts of 60,000 tons, half of 120,000 tons targeted for this year. (Bisnis/iaa/pul)

Custodian bank criteria to be determined

Custodian bank criteria to be set

Monday, 22/03/2010 18:03:25 WIB

By: Irvin Avriano A.

for Bisnis Indonesia

JAKARTA (Bisnis.com): Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) plans to determine the criteria of bank's that will become a mutual fund custodian in order to improve the quality of bank services in the capital markets.

"We are reviewing the criteria, so not all banks will be a custodian for mutual funds, depending on the fulfillment of our classification that will be set," said Chairman of Bapepam-LK Ahmad Fuad Rahmany told the press today.

He explained currently there are 16 banks licensed as custodian, but there is no specific classification criteria for bank to be a custodian of mutual funds.

By the end of last year, Deutche Bank AG Indonesia domineer market share for mutual funds' custody of based on the number of mutual funds, as many as 134 products. After Deutche Bank, another custodian banks into the mutual fund service providers are PT Bank CIMB Niaga Tbk, Standard Chartered Bank NA Indonesia, Citibank NA Indonesia, and HSBC.

Next is PT Bank Mega Tbk, PT Bank Central Asia Tbk, PT Bank Permata Tbk, PT Bank Negara Indonesia Tbk, PT Bank Internasional Indonesia Tbk and PT Bank Mandiri Tbk. Then PT Bank Rakyat Indonesia Tbk, PT Bank Danamon Indonesia Tbk, PT Bank DBS Indonesia, and PT Bank Bukopin Tbk. (wiw)

Lippo Cikarang's profit increase 81%

Lippo Cikarang's profit increase 81%

Monday, 22/03/2010 20:46:09 WIB

By: Irvin Avriano A.

for Bisnis Indonesia

JAKARTA (Bisnis.com): PT Lippo Cikarang Tbk booked net profit increased 81.19% from IDR14,17 bio in 2008 to IDR25,68 bio at the end of last year.

Based on the company's financial statements which published on exchange authority websites today, their net income grows 16.85% from IDR276,55 bio to IDR323,15 bio in the same period.

The financial statements that audited by RSM Aryanto, Jusuf Amir, Rose, & Saptoto also shows the company has increased the burden interest from IDR182,45 bio in 2008 to IDR268,79 bio last year.

The stock emitter still have a business debt with related parties for IDR450,88 mio at the end of which have not been paid since 2008 last year. Company's debt from special relationship with PT Lippo Karawaci Tbk also a decrease from IDRRp484,69 bio to IDR461,02 bio at the same period.(mrp)

In the last week, the company completed Lippo Karawaci St. Moritz Penthouses & Residences up to 20% of planned 11 development projects in an area of 11 hectares.

Superblock physical activity were entered into the fourth apartment tower. A total of three towers of which had entered the ground floor work targeted funds will be completed in October 2011. (mrp)

Medco issues MTN US$50 mio

Medco issues MTN US$50 mio

Friday, 19/03/2010 20:06:31 WIB

Oleh: Irvin Avriano A.

for Bisnis Indonesia

JAKARTA(Bisnis.com): PT Medco Energi Internasional Tbk issuing medium term notes (MTN) II/2010 worth US$50 mio in two tranches tenured 2 and 3 years in Friday.

It was revealed in the data PT Kustodian Sentral Efek Indonesia (KSEI) last weekend. However, the data did not explain the amount of coupons or issuance underwriter of the foreign-currency debt securities.

The data showed MTN Medco II/2010 A tranches worth US$40 mio will mature in March 2012 and the investor will receive the first coupon payment in June 2010. Coupons will be paid every 3 months.

Medco's MTN II/2010 B tranches worth US$10 mio will mature in 2013 with a coupon that will be paid every 3 months. The investors of this tranches will also receive the first coupon payment in June 2010.

When contacted, Medco International Finance Director Darwin Cyril Noerhadi did not pick up his cell phone and did not respond to short message services which delivered in the afternoon. It is also common to the Medco International Investor Relations Nusky Suyono.

Previously, the company's MTN has also been issued in US dollar denomination in February. The A tranches of the debt worth US$28 mio was tenured a year and B tranches worth US$22 million was tenured 3 years. Acted as arranger of the MTN's issuance is PT Bahana Securities. (mrp)

Sinarmas reviews expansion into Fren: Management of Mobile-8 called to accomplish bond and penalty payment

Monday, 22/03/2010 00:00 WIB

Sinarmas reviews expansion into Fren: Management of Mobile-8 called to accomplish bond and penalty payment

Irvin Avriano A.

for Bisnis Indonesia

JAKARTA: Sinarmas Group reviewed the growing stock ownership to the major shareholder at PT Mobile-8 Telecom Tbk, following the default of bond coupon by the Fren operator here.

The tycoon Eka Tjipta group here has not been interested with certain strategic measures to anticipate the default such as through restructuring of shareholders.

Managing Director of Sinarmas Gandhi Sulistiyanto said the company has no plan to have finance restructuring to settle the default of bond coupon payment despite the fact that it is one of the shareholders.

"The default of bond payment is still the responsibility of the former shareholders, so it is not Sinarmas. This deals with one of their finance restructuring. We will review the interest of Sinarmas ownership expansion here," he said to Bisnis yesterday.

The Sinarmas Group through PT Gerbangmas Tunggal Sejahtera now owns 19 percent of Mobile8 shares after acquiring PT Global Mediacom owenrship. After the acquisition, Sinarmas management is likely to expand the possession of Mobile-8 into major shareholder.

Thus far, the cellular operator of Smart which is controlled by Sinarmas Group has not made any overall synergy but simply marketing cooperation by using both parties marketing networks.

On March 15, 2010, Mobile-8 Telecom failed to pay the 12th coupon plus the 9th penalty of second phase of the I/2007 bond series.

In the public expose to IDX, Director of Mobile-8 Telecom Anthony C Kartawiria said the default was due to the absence of adequate fund to pay the obligation.

As per September 30, 2009, the obligation of Mobile-8 Telecom stood at IDR4.94 trillion, with IDR278.64 billion revenues and IDR439.95 billion net profits.

"Now, we are recalculating and the plan to expand the ownership scheme here is in discussion process. However, we still have cooperation will," said Gandhi.

Now Mobile-8 has synergy with PT Smart Telecom on marketing. The synergy of both CDMA-based cellular operators here targets to have 10 million subscribers in 2010.

On the other side, Bapepam-LK will call for clarification addressed by Mobile-8 Telecom on the default of the 12th bond coupon and 9th penalty payment.

"We have summoned them after the default announcement. The point is that we question them on the default. We cannot provide the details yet," said Service Sector Company Finance Assessment Bureau Chief of Bapepam-LK Noor Rachman last week.

He said now the capital market authority still waits for the response from the emitter on the bond coupon and penalty payment default. The bond rating now has been deemed at idD default position given by PT Pemeringkat Efek Indonesia (Pefindo) since March.

IDX had not idea of whether or not to revoke the suspension of Mobile-8 Telecom even if the company has paid the bond coupon and penalty.

Corporate assessment director of IDX Eddy Sugito said the bourse authority will consider the corporate finance situation and the settlement done by Mobile-8.

"Payment is one of the factor to revoke FREN suspension. But it is not simply that. There are still many others to consider. The company should provide certainty and clear direction on the bond and penalty payment," he said. (Bisnis/iaa/ags/10)

WOM Finance prepares IDR500 billion bonds

Monday, 22/03/2010 00:00 WIB

WOM Finance prepares IDR500 billion bonds

Irvin Avriano A.

for Bisnis Indonesia

JAKARTA: PT Wahana Ottomitra Multiartha Tbk (WOM Finance) studies the bond issuance worth IDR500 billion at maximum while waiting for the shareholders approval.

President Director of WOM Finance Suwandi Wiratno said the company plans to seek shareholders approval in the extraordinary general meeting of shareholders (EGMS).

The meeting will be done at the same time with the annual general meeting of shareholders (AGMS) on April 22.

"It is not urgent but we should make it together with AGMS so that when we need to issue bonds this year we don't need to seek approval again and EGMS," he said last week.

Now the company has not invited or selected underwriters for bond issuance. The company has not ensured the bond issuance timing as it is just early scheme.

Suwandi said the bond market now is quite good following the similar investment instrument issuance by some financing companies early this year as one of the alternative funding resources.

The company is likely to call off the sharia bond issuance in Dubai worth US$80 million noting that almost all funding need has been covered. The issuance scheme at one of the Arabian Emirate Union countries since 2007.

Despite the corporate scheme to issue bonds, the funding need for motorcycle credit financing has been covered by the backup given by the holding compnay.

PT Bank Internasional Indonesia Tbk (BII) as the holding firm has agreed to cover 85-90 percent of WOM finance needs.

He also said the company plans to change the commissioners in the EGMS here.

One of the commissioners plans to resign and will be substituted. "But I cannot name the substitute depending on the GMS."

The total ne booking this year stands at 550,000-650,000 units of motorcycles or worth IDR6.5 trillion.

Last year the company failed to get the targeted booking of 400,000 units or IDR4.5 trillion due to the global crisis impact.

At the same GMS, the company plans to address accountability report of finance performance and finance statement last year with the recorded proceeds of IDR1.35 trillion or declined 7.31 percent from IDR1.46 trillion in 2008.

Despite the slashing revenue, the net profit rose 192.94 percent as from DIR20.71 billion in 2008 into IDR60.67 billion. (Bisnis/iaa/mts)

Debt absorbed cash of Mobile-8

Thursday, 18/03/2010 00:00 WIB

Debt absorbed cash of Mobile-8

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: The cash of PT Mobile-8 Telecom Tbk, the CDMA-based cellular operator, is absorbed by the so significant amount of debt that should be paid that the company lacks of sufficient fund to pay the coupon payment to the bond holders.

Corporate Secretary of Mo-bile-8 Chris Taufik said the corporate cash is also allotted for business development. "This year we try to cut the corporate obligation so that we could pay all of our obligations in the future," he said yesterday.

Mobile-8 said Monday next week it will announce the default of bond coupon and penalty payment. At the same time, the bourse authority suspends the transaction of stocks and bonds.

The default bond coupon payment that should be paid by Mobile-8 is the 12th bond coupon of the I/2007 series. Meanwhile, the unpaid penalty up to the due date on March 15, 2010, is the 9th penalty of the second phase of I/2007 bond series.

IDX records the company had listed bonds worth IDR606.5 billion maturing in June 2007. The bond issued in June 2007 had been extended before for another five year due date as from 2012.

Last year, the company with FREN trade code here announced its debt conversion to new equity worth IDR700 billion as from the total corporate debt worth IDR840.92 billion

Responding to the Mobile-8 default, president director of PT Pe-meringkat Efek Indonesia Kahlil Rowter believed the financial market would not give negative responses to the case given that the bond payment prospect is in general still deemed good.

Pefindo projected the corporate bonds maturing this year will stand at about IDR15-20 trillion, and the new incoming bonds worth IDR25 trillion. "We are sure market could absorb them."

Unlike Kahlil, Dewi Fajar Mayang Sari, analyst of PT In-fo-vesta Utama, said the debt of Arpeni is potentially default along with the current position of idCCC level. However, it still depends on the corporate strategy.

Data of IDX shows some bonds on the default position include PT Pindo Deli Pulp and Pa-per Mills, PT Indah Kiat Pulp & Paper Corp Tbk, and PT Lontar Papyrus Pulp and Paper.

The same data also shows the bonds of PT Infoasia Teknologi Global Tbk worth IDR90 billion are on the level of B1.id and Ca.id. (Bisnis/bpj/iaa/bsi)

Oto Multiartha issuing IDR1 trillion bonds

Friday, 19/03/2010 00:00 WIB

Oto Multiartha issuing IDR1 trillion bonds

Irvin Avriano A.

for Bisnis Indonesia

JAKARTA: PT Oto Multiartha, a national car financing firm, has processed the new bond issuance worth IDR1 trillion that will be listed in June at the bourse.

IDX corporate assessment director Eddy Sugito said Oto Multiartha is deemed one of the bond emitter candidates processing bond issuance to the bourse authority.

"There are two new bond emitters in the near future. The quickest issuance is in the next 2-3 months ahead or June," he briefed the press yesterday.

Besides the car multifinance company, the bourse authority has either received bond issuance scheme report of one of bank emitters. The total bond issuance of both firms is estimated at IDR2 trillion.

Eddy declined to name the bank identity which will issue bonds as the issuance is still in initial planning. "let alone the status is go public company. But one thing for sure is that it is not state bank," he said.

Oto Multiartha bond issuance will become the seventh series. The last was the sixth series worth IDR1.2 trillion supplementary to the V/2007 series worth IDR500 billion.

In official statement, PT Pemeringkat Efek Indonesia (Pefindo) gave AA- rating of both bonds issued by Oto Multiartha, the V/2007 series worth IDR500 billion and the VI/2009 series worth IDR1.2 trillion.

Analyst of Pefindo Dimas Aditya and Hendro Utomo said the rating has stable outlook following the robust capitalization which reflected the strong backup from the holding firm, Sumitomo Cor-po-ration.

"But the tight competition among car multifinance industries will be challenging to the corporate rating," he said yesterday. (Bisnis/ags/iaa)

Mobile-8 bond default: Global Mediacom acquired MNC stocks worth IDR4.90 billion

Wednesday, 17/03/2010 00:00 WIB

Mobile-8 bond default: Global Mediacom acquired MNC stocks worth IDR4.90 billion

Irvin Avriano A.

for Bisnis Indonesia

JAKARTA: PT Mobile-8 Telecom Tbk, CDMA-based cellular operator, was in state of default for bond coupon and penalty payment.

The default bond coupon here is of the 12th bond coupon from the I/2007 series. The unpaid penalty up to the due date of March 15, 2010 is the 9th bond of II/2007 series.

With the default, the bourse authority Monday this week suspended the 12th bond of the I/2007 series trade and transaction of the FREN code stock here.

Securities company assessment division head of the Indonesia Stock Exchange (IDX) Latifah Hanum said the suspension of emitter bond trade is applied for bond and fised income trading system (FITS).

"Mobile-8 bond trading suspension has been done from March 15, 2010, until the emitter explanation on the corporate bond coupon payment," she said in Jakarta Monday.

Latifah added the suspension was done following the report filed by PT Kustodian Sentral Efek Indonesia on the failure of the bond and securities emitter to pay for bond coupon.

IDX records that the company registered bonds worth IDR605.5 billion will mature in June 2017. the issued bond in June 2007 maturity was formerly extended for another five year prior to 1012.

The bond coupon was changed into 12.375 percent for nine quarters from June 15, 2007, then five percent for eight quarters starting from September 15, 2009, eight percent for 12 quarters from September 15, 2011, and 18 percent for 12 quarters on September 15, 2014.

Director of Mobile-8 Telecom Anthony C. Kartawiria in the public expose to IDX pledged to do all efforts to pay bond coupon and penalty on the first chance on the available extended period.

When suspended, the stock price of Mobile-8 cost IDR51. FREN stock price Friday rose IDR1 from IDR50 and the market capitalization stood at IDR1.68 trillion.

Meanwhile, PT Global Mediacom Tbk claimed to have acquired 17.50 million shares of PT Media Nusantara Citra Tbk (MNC) worth IDR280 per shares or totally worth IDR4.90 billion.

In the public expose to IDX, Global Mediacom was said to acquire MNCN stocks February 23, 2010 to maintain strategic ownership.

The MNC finance report September 2009 said Global Mediacom possessed 9.78 billion shares or 71.14 percent, Mediacorp Investment Pte Ltd owned 942.38 million shares or 6.85 percent, and public 3.03 billion or 22 percent shares.

By end September 2009, MNC net profit grew from IDR296.89 billions per September 2008 into IDR351.95 billion. but the business profit slightly declined form IDR521.99 billion in September 2008 into IDr516.66 billion.

Business revenue of the company majoring in television broadcast, print media, magazine, tabloid, and radio networks here rose from IDR2.78 trillion September 2008 into IDR2.83 trillion in September 2009.

Monday trade MNC stock price was closed with IDR5 plummet into IDr255 so as to have IDR3.50 trillion capitalization. Global Mediacom was declined by IDR15 into IDR320 so as to hit IDR4.40 trillion capitalization. (Bisnis/iaa/wiw/bsi)

Consolidation of Investment Managers Approaching: Minimum Investment of Discretionary Fund to be Tightened

Monday, 15/03/2010 00:00 WIB

Irvin Avriano A.

Bisnis Indonesia

Consolidation of Investment Managers Approaching: Minimum Investment of Discretionary Fund to be Tightened

JAKARTA: Several investment managers will be shut down if the plan of applying a minimum investment requirement of IDR25 billion to bilateral discretionary fund is realized.

Director of PT First State Investments Indonesia Putut Endro Andanawarih viewed the potential shrinking number of investment managers was almost a sure bet and had to be responded as a challenge to the capital market players.

However, he informed, this would instead benefit both parties involved in the contract. "The tighter discretionary fund contracts will prevent anyone from feeling harmed in the future."

One investment manager estimated following the regulation and some other tighter regulations this year, the number of investment managers could shrink by 15-20 companies.

"If we want to be honest, it doesn't take huge capital to establish an investment manager as long as it has sufficient risk management and good integrity. I think around 15-25 investment managers will have to shut down operations following the regulation."

At the moment, the plan is being discussed. According to Head of the Investment Management Bureau at the Capital Market and Financial Institution Supervisory Agency Bapepam-LK Djoko Hendratto, who oversees the mutual fund and investment manager industries, the agency was still gathering inputs from market players before issuing the new policy, which will be inked in Regulation V.G.6 on Guide to Customer Fund Management by Investment Manager Based on Bilateral and Individual Discretionary Fund Agreement.

In the draft of the regulation, the capital market authorities suggests a minimum investment fund of IDR25 billion for discretionary fund. In addition, Bapepam-LK also suggests the need to have notary contract and custodian bank.

Can be harmful

Secretary of the Indonesian Employee and Retired Employee's Welfare Foundation Federation (Iyakkapi) Rubiyanto confirmed several foundations had been taking advantage of discretionary fund as investment product due to the fund's high profit profile.

However, he argued, the minimum fund requirement could be harmful if the amount was too big. "A minimum fund of IDR25 billion is too high since not many institutional investors have such a huge amount of fund. On the other hand, the regulation also protects investors and investment managers," Rubiyanto told Bisnis yesterday.

Iyakkapi is one of capital market investors associations using investment manager services to manage their investment portfolios.

In the meantime, the Indonesian Mutual Fund Managers Association (APRDI) responded by suggesting the minimum requirement be fixed at a more moderate level.

"We may suggest the minimum fund at IDR10 billion, although some prefer it at IDR1 billion or IDR5 billion. However, we think it is too small and is not different from limited equity mutual fund," said Chairperson of APRDI Abiprayadi Riyanto last week.

Shut down opportunities

At the recommendation of APRDI, Chairperson of Bapepam-LK Ahmad Fuad Rahmany stated, the agency would shut down opportunities to lower the minimum fund requirement to IDR5 billion since such a figure was too small and not safe for market players.

However, Fuad added, the possible schemes were IDR10 billion, IDR15 billion, or IDR20 billion.

"We want only big and risk-wise investors able to access discretionary funds. As to small investors, it will be better for them to invest their funds in mutual fund products," he said recently.

He continued the new regulation would lead to the consolidation of 99 investment managers currently operating. According to him, 99 managers were too high of a number and the authorities hoped there would be a stronger industry through investment manager mergers.

"It will be better to have a tight market that is able to protect the businesses and investors," asserted Fuad.

Co-Chairperson for Investment at the Indonesian Pension Funds Association (ADPI) Gatut Subadio viewed the regulation would improve investment process in the capital market.

In the meantime, President Director of the Jasa Marga Pension Fund Ali Gufron said the minimum investment requirement for discretionary fund should be fixed as minimum as possible.

"I think the minimum requirement fund should be fixed as minimum as possible, say IDR5 billion. IDR5 billion is a limit that still benefits investors."

Ali suggested additional requirements for discretionary fund management to reduce the risks of investors from losing money, such as in the case of Antaboga Delta Sekuritas or the case of hundreds of billion rupiahs' worth of loss suffered by Optima Kharya Capital. (Bisnis/iaa/08/faa)

XL shares to be offered at 10% discount

Saturday, 13/03/2010 00:00 WIB

XL shares to be offered at 10% discount

Irvin Avriano A.

for Bisnis Indonesia

JAKARTA: The divestment of 20 percent shares of PT XL Axiata Tbk by the holding company, Axiata Group Berhad, thorugh private placement is likely at discount price of 10 percent at minimum.

An informed local investment manager said the discount is given so as to lure investors. "If premium, the sale will be less attractive," he said to Bisnis yesterday.

The third largest cellular operator stock price, EXCL, yesterday was falling 14 percent into IDR3,500 so that the market capitalization was IDR29.78 trillion. The price to earning ratio was 14.53 times.

Referring to the EXCL stock price yesterday, Axiata could offer a par value of IDR3,150 in the later private placement.

In the public expose to the Malaysia stock exchange, Axiata that was formerly called TM International that had 86.5 percent XL shares, will sell the stocks to give chance to investors direct participation for the business growth of XL.

In addition to Axiata, Etisalat Interna-sio-nal owns 13.31 percent of XL shares and the rest goes to public investors, which is now only 0.2 percent of the stock placement and participation.

Indonesia Stock Exchange (IDX) many times called XL management to expand portion of public stocks. However, the call has not made any change. XL management and the holding company still stick on the small portion of public possession.

Goldman Sachs will act as the EXCL shares global sales coordinator. Meanwhile, CIMB Investment Bank will serve as the bookrunner and Mandiri Sekuritas leads the sales as manager.

Dato' Sri Jamaludin Ibrahim, President and CEO group of Axiata, said the last offer price and the divested shares will be defined after bookbuilding process. The offering is expectedly to finalize next April.

Last year XL recorded good operational and financial performances "Along with the scheme and economy recovery as the drive for capital market, we believe that now is the right momentum to offer XL stocks," he said.

Almost at the same time, PT Pemeringkat Efek Indonesia (Pefindo) yesterday upgraded XL and its bond rating from A+ rating into AA- due to the better financial profile.

"Finance profile is mostly supported by the more conservative financial leverage, stable market position, and the high credit worthiness from the company shareholders," said analyst of Pefindo Niken Indriarsih.

Separately, Service Sector Company Finance Appraisal Bureau Chief of Bapepam-LK Noor Rachman said the bourse authority still demand the XL management to expand the public portion as from the current portion of 0.2 percent.

Moody's decrease Indosat's outlook to negative

BI/bursa

11/3/2010

Irvin Avriano A.

for Bisnis Indonesia

Moody's decrease Indosat's outlook to negative

JAKARTA: Moody's Investors Service lowered ratings outlook for the company and the bonds of PT Indosat Tbk from a stable level to a negative level due to the potential increase in the ratio of debt to EBITDA. The company's and bond's ratings itself affirms at the Ba1 level.

"The revision in outlook to negative is driven by our expectation that Indosat's adjusted ratio of debt to EBITDA will increase to above 3 times," said Moody's analyst Ivan Palacios in the disclosure of information at Indonesia Stock Exchange (IDX/Bursa Efek Indonesia) websites today.

EBITDA is a calculation of the company's earnings before interest, taxes, depreciation, and amortization.

He considered the ratio increased due to the companies financing requirements this year will increase. The escalation, he continued, was also considered will increase the proximity to the company's covenant, associated with the bonds that have been issued the company.

According to him, the company's operations conditions will improve in recent years, but the increase in revenue, EBITDA, and cash flow will not be sufficient to lower the leverages to less than 3 times this year.

In addition, Moody's also considered Indosat's liquidity will remain tight in the short and medium term because the company's cash funds and cash flow alone will not be enough to cover the needs of corporate capital expenditures, working capital, and debt needs.

These deficits, he said, is expected to be covered by issuing corporate bonds in large quantities which will impact on the lack of space between the company's financial covenant limits. Narrowness of the differences will make the state-owned telecommunications company's financial flexibility will be constraints.

Evergreen Invesco appoint AAA Securities for IPO

BI / bursa

Irvin Avriano A.

for Bisnis Indonesia

Evergreen Invesco appoint AAA Securities for IPO

JAKARTA: PT Evergreen Invesco appointed PT Andalan Artha Advisindo Sekuritas (AAA Securities) as the underwriter for the initial public offering (IPO) worth IDR100 bio.

"Its worth around IDR100 bio, the document was submitted about last week, as far as I remember the underwriter is AAA Securities," said Corporate Appraisal Services Sector Bureau Chief of Bapepam-LK Noor Rachman to Bisnis this Tuesday.

Noor said the company is a textile industry and the upstream industrial, such as cotton, together with its subsidiaries. However, he can not explain the detail associated with the company's registration statement documents.

When confirmed, AAA Securities President Director Th. Andri Rukminto not picked up his cell phone when contacted on Tuesday. He also did not respond to short message service which has delivered.

Previously, Corporate Appraisal Director of Indonesia Stock Exchange (IDX/Bursa Efek Indonesia) Eddy Sugito said the company and PT Golden Truly Retailindo plans to list their shares on the stock exchange in 1st semester 2010 worth totaling IDR150 bio.

Noor also explained he has not received the Golden Truly registration statement until this week.

Bapepam-LK is still waiting for official proposal KPD from APRDI

photograph of Robinson Simbolon

Bapepam-LK is still waiting for official proposal KPD from APRDI

Thursday, 11/03/2010 19:11:04

By: Irvin Avriano A.

for Bisnis Indonesia

JAKARTA: Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) is still waiting for official proposal from the Indonesia Association of Mutual Fund Manager (APRDI) associated with the minimum amount of bilateral fund management contracts (KPD).

"We're still waiting for suggestions from them, we still can accept it, we heard they were still formulate the suggestion," said Legislation and Legal Assistance Bureau Chief of Bapepam-LK Robinson Simbolon to Bisnis this afternoon.

The draft regulations are intended No.V.G.6. of customer cash management agreements bilaterally by the investment manager.

In the draft, the capital market authority proposed that the minimum investment in KPD worth IDR25 billion. In addition there are also Bapepam-LK's proposals to use notariil in the contracts and using custodian banks.

Robinson explained the authority is getting input from the proposed new regulations from the 29 parties that requested and some industry players other mutual funds. He said it happens because the suggestion is gathered not only from specified party.

Some of the proposals that had collected amounted to IDR1 billion, IDR5 billion and IDR10 billion. However, he said, he can not conclude the largest from submitted proposal from mutual fund industry and investment managers.

Earlier, APRDI Chairman Abiprayadi Riyanto said the association intended to propose a minimum investment in the KPD of IDR10 billion. The proposed amount is considered a minimum amount of investment in private banking in US for US$ 1 million.

APRDI suggest KPD IDR10 bio

BI/Bursa

9/3/2010

Irvin Avriano A.

for Bisnis Indonesia

APRDI suggest KPD IDR10 bio

JAKARTA: The Association of Mutual Fund Manager Indonesia (Asosiasi Pengola Reksa Dana Indonesia/APRDI) plans to propose a minimum amount of investment in the billateral discretionary fund (kontrak pengelolaan dana KPD) for IDR10 bio.

"We seem to be proposing to IDR10 bio, some capital market players also suggest amount of IDR1 billion or IDR5 billion, but the amount is too small for such product," said Chairman APRDI Abiprayadi Riyanto via short messages service to Bisnis today.

He said the figure is also considered to the minimum in the management of other countries, especially private banking in the US which amounted to US$1 mio. The suggestion of APRDI members, he added, also shows that many fund managers objected to minimum limit of IDR25 billion that already proposed by Bapepam-LK.

Capital Market and Financial Institution Supervisory Agency (Badan Pengawas Pasar Modal dan Lembaga Keuangan/Bapepam-LK) proposed a minimum investment in the KPD which will be regulated in the draft regulations V.G.6. worth IDR25 billion.

The rules would restrict the Investment Manager's Customer Fund Management Guidelines Based on the Fund Management Agreement of Bilateral and Individual.

Currently, the draft regulations already published and is awaiting final responses from market participants to immediately validated.

These regulations, which will restrict for the very first time, will manage the contract asset management services for customers which after this times only based on of agreement between two parties and are dependent only on a single contract.

Such investment products is a old form and embryo in the investment manager industry before the mutual fund scheme formed in late 1990's.

However, because there are no signs that restrict the product altogether, investors are not limited by acknowledgement of capital market investment products. These kind of investors are often disadvantaged because they do not know the risks.

In addition, the product is also often combined for a few dozen investors so that its mass with a minimum value of investment in small quantities.

Abiprayadi explains the association sees rate minimum investment IDR5 bio that has been one of a discourse is too small, so the APRDI do not agree with such a small scale because of the potential use too many investors.

Association, he said, had held a meeting related to the proposal at the end of last week, but have not settled on a final proposal to be submitted to Bapepam-LK.

He is also considered a plan asset recording and storage of the KPD, which will be given the name of customer funds management (pengelolaan dana nasabah/PDN) term, the custodian bank and the notary will make the product more secure and assured for customers who will invest.

Chairman of Bapepam-LK Ahmad Fuad Rahmany said the authority closed the possibility of decreasing the minimum investment to IDR5 billion because it was too small and are considered safe for acts of market participants.

"We want investors who will be able to access the KPD products only big investors and whose understand the risks, if they can not afford it, they will be better invest in mutual funds."

Legislation and Legal Assistance Bureau Chief of Bapepam-LK Robinson Simbolon said even the last time limit set on March 4, the authority still wait for the proposed draft regulations from APRDI.

"We're still waiting for the association [APRDI], if they do not enter, we will check the proposal from others the mutual fund industry doer firstly. It is no matter if they [APRDI] are late, because of [their proposal] is important."

Bapepam-LK may give permissions of Matahari's EGM

BI/

7/3/2010

Irvin Avriano A.

for Bisnis Indonesia

Bapepam-LK may give permissions of Matahari's EGM

JAKARTA: Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) may give permit for extraordinary general meeting of shareholders (EGM/RUPSLB) of PT Matahari Putra Prima Tbk (MPP), although loan approval of Bank Indonesia (BI) has not come out.

"We are awaiting approval from the bank loan, but the EGM mechanism remains running. If they [MPP] was asked for it, we will give it, "said Chairman of Bapepam-LK Fuad Ahmad Rahmany to Bisnis in the Bapepam-LK House Monday night.

Fuad agreement is intended to the BI permission debt transactions between PT Matahari Department Store Tbk (MDS) to PT CIMB Niaga Tbk and Standard Chartered Bank Indonesia worth IDR3.25 trillion.

It made asset transactions, receivables, and MDS shares as collateral. MDS shares that will be the collateral to be sold by MPP to PT Meadow Indonesia.

Some of the debt, IDR2.8 trillion will be lent to the Meadow Indonesia by MDS to buy stakes in MDS as part of MPP funds to be paid cash worth IDR5.3 trillion.

MDS stock sale between MPP and Meadow Indonesia worth Rp7 trillion, which backed by shares from Meadow Indonesia's parent company, Meadow Asian Company, and unsecured debt IDR1 trillion.

Fuad explained the mechanism of the EGM was not associated with the loans approval from Bank Indonesia to the two banks which under its control. However, he said, is not closed the deal may fail if the Bank Indonesia refuses loan after the approval of MPP's shareholders obtained.

In the last week, Fuad explained BI still have the authority to stop these loans as the banking authorities has the right of efforts to secure public funds entrusted to the banks.

"BI can [stop lending it] because it was public funds which will be given as a loan. The capital market authority can not do that because all transactions in the capital markets based on the approval of the shareholders, if approved, no problem."

MDS's stock price benchmark in the MPP and Meadow Indonesia transaction use a reference of IDR2.705 per share. The reference was to see the stock trading price of consumer goods issuers soared in December and January.

In fact, the company's stock position was slightly above the IDR200 level in November and the outstanding public ownership of the stock on the stock market just as much as 2% of all the its listed shares.

MDS's stock price soars has entered the examination phase of the Indonesia Stock Exchange and Bapepam-LK, which indicates the price was marked-up from a certain price.

Current capital market authority has received files from 28 securities that allegedly linked toviolations of trading MDS shares.

Securities Transaction and Institution Bureau Chief of Bapepam-LK Nurhaida said her bureau still reviewing the documents from the 28 securities. However, he added, he has not called those securities companies until today.

"Currently we are still discussing the document that has been given the bourse authority, but we can call them later if it necessary."

Ricky Putra redeem some of their sukuk

BI /

7/3/2010

Irvin Avriano A.

for Bisnis Indonesia

Ricky Putra redeem some of their sukuk

JAKARTA: PT Ricky Putra Globalindo Tbk repay some of their ijara sukuk I/2005 with jumbo bond certificates worth IDR30.4 billion.

"[The settlement was] based on the decision of the general meeting of sharia bondholders [rapat umum pemegang obligasi/RUPOS] at October 8th, 2009," said Ricky Putra Director Victor R. Franziscus in disclosure of information in exchange authority, Monday.

Data Indonesia Stock Exchange (IDX) also showed the authority delete markets records from some of its unit since the company had paid off it.

Corporate Bonds Assessment Division Head of BEI Saptono Adi Junarso said the settlement was made the number of company's sukuk outstanding only IDR30.4 billion left. The number of the corporate bonds before the pay off was worth IDR60.4 billion that will mature in July this year.

Previously, the company intends to use internal cash funds to pay off these debts.

The same data also showed PT Astra Sedaya Finance will pay off the coupon of medium-term notes (MTN) II/2009 worth IDR1.75 billion.