UBS buy Brazilian brokerage Link Investimentos US$112 mio

BI/bursa internasional

29/4/2010

UBS buy Brazilian brokerage Link Investimentos US$112 mio

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: UBS AG agreed to buy a Brazilian brokerage house Link S.A. CCTVM, or Link Investimentos, about US$112 mio.

In an emailed statement, UBS announced the acquiring agreement worth Reais 195 mio, or approximately US$112 mio. The transaction is expected to close during 4Q2010, subject to approval from Central Bank of Brazil.

Link Investimentos was founded in 1998 as an independent broker-dealer, and has offices in São Paulo and Curitiba. Link is one of the largest independent broker-dealers in Brazil with a strong position in equities, equity research and equity derivatives, as well as exchange traded FX, fixed income and commodity products.

Since 2002, Link has been the leader in exchange traded fixed income and exchange traded commodities products in Brazil. Link also provides private wealth management and asset management services. It is a private partnership with 279 staff, including 73 partners.

Under the terms of the transaction, UBS has agreed to acquire 100% of the shares of Link Holding Financeira S.A., that holds all shares of the Link Investimentos. Its businesses will be integrated into the Investment Bank, Wealth Management, andAsset Management divisions of UBS.

Upon closing, the combined entity in Brazil will be re-branded as UBS. UBS will not acquire Link’s retail online brokerage business.

SMF to issue IDR500 billion bonds: Four bond emitters carry paper sanction

Thursday, 29/04/2010 00:00 WIB

SMF to issue IDR500 billion bonds: Four bond emitters carry paper sanction

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: PT Sarana Multigriya Finansial (SMF) plan to issue IDR500-550 billion bonds to cover the housing financing disbursed by the company.

Director of SMF Sutomo said the kick off meeting of the bond issuance had been done yesterday at the corporate office jointly with the underwriter.

"The tenure might by 1-3 years depending on which tenure that has lower interest," he said to Bisnis yesterday.

He said the company has appointed PT Danareksa Sekuritas as the underwriter which later seeks cooperation with PT CIMB Securities Indonesia as the joint underwriter.

"We appreciate the appointment of additional underwriter as it helps open the socialization of SMF and our program. The amount of issuance depends on the disbursement of KPR (housing loan) we have made before."

President Director of SMF Erica Soeroto said not the company has studied two choices of bond issuance scheme which is appropriate and could ease the issuance of new instrument.

The first scheme is by forming bond that uses KPR as the simpler underlying assets so as not to use the securitization scheme. The second on is to establish asset securitization without including the lower rating asset as the true sale asset.

"All schemes are also possible for the sharia financing institution. The point is that we are formulating the new way not to make the debt rating reflect the SMF risk but rather the lower KPR asset risk and get the higher rating."

The proposed scheme here will be proposed to the BI and Bapepam-LK in the near future.

Not the company got AA(idn) rating from PT Fitch Ratings Indonesia. Meanwhile, the securities-backed assets (KIK-EBA) issued by sMF last year got idAAA rating.

The securitization used the KPR asset of PT Bank Tabungan Negara Tbk as the underlying asset.

The issuance of EBA DSMF-BTN I/2009 and DSMF-BTN II/2009 of A series worth totaling IDR445.11 billion was executed by SMF jointly with PT Danareksa Investment Management and PT Standard Chartered Secu-ri-ties Indonesia.

Bond issuance is done by the company following the issuance of medium term notes (MTN) I/2010 totally worth IDR188 billion mid last month.

The issuance consisted of the tranches A worth IDR163 billion with 8.75 percent coupon maturing in April next year, and MTN tranches B worth IDR25 billion maturing in 2012 with 9.25 percent coupon.

IDX records shows that the company had ever issued the I/2009 and II/2009 bonds worth IDR300 billion and IDR251 billion respectively. Corporate bond issuance was handled by PT Trimegah Se-cu-rities Tbk and PT Bahana Securities as underwriter.

"If done, that will be discussed promptly despite the implementation needs approval from the Legislatives."

Meanwhile, IDX imposed paper sanction to four bond emitters at the capital market due to their failure for audited finance statements submission last year.

Based on the public expose yesterday, the four sanctioned firms here include PT Infoasia Teknologi Global Tbk, PT Jakarta Propertindo, PT Lontar Papyrus Pulp & Paper Industry, and PT Pindo Deli Pulp & Paper Mills.

"That refers to the IDX notice No. Peng-00307/ BEI.PPS/04-2010 dated April 6, 2010 on the first paper warning to bond and sharia bond emitters for the belated submission of audited finance statement of December 31, 2009," said division head of the securities company assessment of IDX Saptono Adi Junarso. (Bisnis/iaa)

Inovisi prepares new acquisition

Thursday, 29/04/2010 00:00 WIB

Inovisi prepares new acquisition

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: PT Inovisi Infracom Tbk prepares plan to acquire information technology (IT) company this year to use the corporate net profits.

Corporate Secretary of Inovisi Benita Sofia said the acquisition is possible but the size of Code Wireless Ltd, the company is less than the company which has just got acquisition approval from the shareholders.

"We can acquire another IT company if we have fund or use our profit last year," she said after extraordinary general meeting of shareholders (EGMS) in Jakarta Tuesday night.

In the EGMS, Inovisi has just got approval from the shareholders to acquire Code Wireless and have rights issue worth IDR100 billion to collect fund.

"The shareholders agreed to our acquisition plan of Code Wireless and rights issue," said President Director of Inovisi Jerry Djajasaputra.

In the acquisition scheme of Singapore IT company, the firm will collect IDR100 billion funds from investors through rights issue and warrant issuance. The action will make the composition of shareholders who fail to execute their rights diluted by 53.34 percent.

The acquisition value of Code Wireless and two subsidiary firms, Abamon Technology Sdn Bhd and Smart Checker Ltd BVI, stands at US$10.45 million. The market price according to independent appraiser is S$10.7 million. Jerry said the price discount is relatively benefiting the company.

The stock value divested to the shareholders and standby buyers has the par value of IDR125. The value here is far lower th corporate stock price of IDR1,140 and thus the equity capitalization values at IDR1.04 trillion. (Bisnis/iaa)

Mandiri Investasi seeks IDR1 trillion new asset under management

Thursday, 29/04/2010 00:00 WIB

Mandiri Investasi seeks IDR1 trillion new asset under management

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: PT Mandiri Manajemen Investasi targets to seek asset under management worth IDR1 trillion from five protected mutual funds they sold.

"The target of protected mutual fund is more or less IDR200 billion each," said director of Mandiri Investasi Andreas Muljadi Gunawidjaja yesterday.

He said the company plans to market a so-called Reksa Dana Terproteksi Dana Pendapatan Berkala 18 on May 17 and the other four protected mutual funds in the near future.

The five mutual funds here will use the government sovereign bonds (SUN) and corporate bonds as the underlying assets of the capital market investment products here.

The other four new mutual fund products readily released here include Reksa Dana Terproteksi Da-na Pendapatan Berkala 17 and Reksa Dana Mandiri Investasi Terproteksi Seri 2, Reksa Dana Terproteksi Mandiri Investa Terproteksi Pendapatan Berkala Seri 2 and Mandiri Investasi Terproteksi Syariah Seri I.

The four products here will be sold by the company up to June offering 7.6-9 percent yields per year to investors.

Product marketing as to Andreas will be done through some sales agent banks particularly PT Bank Mandiri Tbk as the holding company of the investment manager here.

Andreas said up to April 23, the company released four protected mutual funds in US and rupiah denomination with the asset under management worth IDR730 billion and US$16 million.

Up to February, Mandiri Investasi could have 28.68 percent market shares of protected mutual fund or IDR9.9 trillion as from the total of closed mutual fund wealth management worth IDR34.6 trillion in the same period.

Despite the soaring SUN and corporate bond price in the past few months, Andreas said both securities here still offer lucrative yield to investor.

"Investors are still interested in the products types and thus Mandiri Investasi still continues to focus on the other protected mutual fund release."

Investors interest is due possibly to the lower risk offered by the protected mutual fund with relatively attractive yield. Besides, the management of protected mutual fund here is more passive while waiting for the maturity and it is not time consuming on its management. (Bisnis/iaa)

Indosiar stock price skyrocketing

Thursday, 29/04/2010 00:00 WIB

Indosiar stock price skyrocketing

Irvin Avriano A.

Bisnis Indonesia

JAKARTA:Stock price of PT Indosiar Karya Media Tbk skyrocketed by 25 percent from IDR300 into IDR375 per share unit on yesterday closing following the revocation of suspension imposed by the bourse authority since Tuesday.

The skyrocketing stock price of IDKM here confirmed that market still believed the plan of Trans Corp led by noted businessman Chairul Tandjung to acquire Indosiar despite the opposition argument on the rumor.

Research head of PT Bhakti Securities Edwin Sebayang said the rally of Indosiar stock price was based on the rumor on the acquisition of Indosiar. "The rumor is bolstered the prolonging pressures of Indosiar stock price," he said yesterday.

The rumor sparked assumption that the indebtedness of Indonesiar will be immediately recovered. Indosiar debt per December 31, 2009 stood atIDR857.88 billion with debt to equity ratio of 2.95 times.

In April 2010, INdosiar stock grew by 212.50 percent from the closing price early the month at the level of IDR120. this year, Indosiar stock rose by 237.84 percent from early year stock rice of IDR111.

Indonesia Stock Exchange suspended yesterday two emitters stock exchange of PT Eatertainment International Tbk and PT Dayaindo Resources International Tbk.

The suspension of Eatertainment started from 28 April was imposed following the mounting corporate stock price from IDR200 on April 21 into IDR450 on April 27.

Division head for transaction supervision of IDX Hamdy Hassyarbaini said the authority has been waiting for the corporate clarification dealing with the rumor that the company is on sales negotiation with the Rajawali Group. (Bisnis/iaa/10/bsi)

Blue chip corrected: Rupiah appreciation pressures consumption goods performance

Thursday, 29/04/2010 00:00 WIB

Irvin Avriano A.

Bisnis Indonesia

Blue chip corrected: Rupiah appreciation pressures consumption goods performance

JAKARTA: Price correction of blue chip following the performance report of quarter I/2010 happened to PT Indocement Tunggal Prakarsa Tbk confirming the too much price due to the prior rally.

The second largest cement producer nationwide stock price yesterday dropped by 3.35 percent or IDR550 per share unit following the announcement of the corporate IDR786.36 billion net profits in quarterI/2010 grew 56.42 percent from quarter I/2009.

The situation happened similarly to the sock price of PT Astra Agro Lestari Tbk, the Astra Group's CPO producer, which was corrected by 2.31 percent following the announcement of 24 growth worth IDr272 billion.

The mounting stock price of Indocement since April 19 from IDR14,450 to IDR15,500 last Tuesday was corrected yesterday into IDR14,950. The rally was driven by the investor expectation emerging from the soaring cement sales in quarter I/2010.

Data of the Indonesian Cement Association shows the consumption of cement in quarter I/2010 stood at 9.7 million tons rose by 16.86 percent from quarter I/2009 confirming the transmission of economy to real sector.

Separately, analyst of PT Sinarmas Sekuritas Alfiansyah considered there is price consolidation as seen from the current trend of the blue chip following the prior growth two weeks before.

"With the negative sentiment from Greece whose debt rating fell down, I think the consolidation will continue but it goes together with the index correction in the short run."

Separately, in the consumption goods sector, the cosmetic producer PT Mandom Indonesia Tbk booked the plummet of net revenue in quarter I/2010 by 2.4 percent into IDR368.2 billion jointly with the net profit drop of 24.3 percent into IDR45.9 billion.

Corporate secretary of Mandom Kazue Junus said the condition is triggered by the soaring rupiah which pressured the quarter I/2010 exportation by 15.7 percent into IDR94.1 billion and thus increases the promotion cost and business cost up to 28.3 percent into IDR72.1 billion.

Performance pressures following the appreciation of rupiah also happened to PT Enseval Putera Megatrading Tbk, the distributor and supplier of medicine and cosmetic products. Corporate net profit in quarter I/2010 declined by 32.46 percent into IDR77.17 billion.

President Director of Enseval Vi-djong-tius said the net profit drop was driven by the exchange rate spread losses worth IDr4.08 billion and the falling business profits by 18.91 percent into IDR75.30 billion despite the net sales rose slightly by 4.93 percent into IDR2.03 trillion.

Meanwhile, the industry miscellaneous sector, cable producer PT Sumi Indo Kabel Tbk recorded the swelling net losses by 238.86 percent into IDR2.38 billion from quarter I/2009 with IDR38.8 billion net profits.

In construction sector, PT Pembangunan Perumahan Tbk recorded the quarter I/2010 net profits grew by 26.24 percent into IDR15.36 billion with IDR561 billion revenues. (Bisnis/iaa/bsi/08/10/ags/faa)

Sumi Kabel Indo losses IDR2.38 billion in 1st Q

Wednesday, 28/04/2010 12:55:48 AM

Sumi Kabel Indo losses IDR2.38 billion in 1st Q

By: Irvin Avriano A.

Bisnis Indonesia

JAKARTA (Bisnis.com): PT Sumi Kabel Indo Tbk booked a net loss of Rp2, 38 billion in the 1st quarter of 2010 , decrease 238.86% from net income of IDR38,8 billion in the 1st Q/2009.

Based on their financial report announced today, the company recorded higher sales of 15.63% in the quarter compared with the same period last year amounted to IDR247.4 billion to IDR286.07 billion.

However, their sales is burdened by higher selling expenses which rocketed from IDR196 billion to IDR273.83 billion in the same period.

Expenses was primarily due to inflated raw material usage that booming at 62.04% from IDR151.67 billion to IDR245.76 billion.

In addition, the company also experienced a surge in net foreign exchange losses amounting to IDR5.93 billion compared with foreign exchange earnings last year amounted to IDR12.36 billion.

The company is engaged in manufacturing, especially to supply energy and telecommunications cables. Sumi Kabel has a factory in Pasir Jaya village, Tangerang.

As of March 2010, the shareholders of the Company consists of Sumitomo Electric Industries Ltd Japan amounting to 88.06%, Sumitomo Corporation, Japan, amounting to 5%, Sulim Herman Limbono by 0.1%, Shigefumi Ushitani of 0.0032%, and the public for 6.84%.

The share price fell 18.51% when the market open this morning from level IDR1.100 to IDR1.250 level at the trading closing this afternoon and formed the company a market capitalization amounted to IDR336.6 billion. (Wiw)

Customers called to verify assets: Optima stock trade business still suspended

Wednesday, 28/04/2010 00:00 WIB

Irvin Avriano A.

Bisnis Indonesia

Customers called to verify assets: Optima stock trade business still suspended

JAKARTA: The Capital Market and Finance Instituion Supervisory Agency (Bapepam-LK) and Self Regulatory Organization (SRO) called 200 customers of PT Optima Kharya Capital Securities to verify their investments.

IDX compliance and transaction supervision director Uriep Budhi Prasetyo said the customers have not submitted their asset verification despite the personal letter sent few weeks before.

As from the 400 corporate customers, some 150-200 customers have confirmed the verification done by SRO here.

"We expect in the next two weeks, they who have not verified could do the verification so as to run the process well," said Uriep to press yesterday following the meeting involving some Bapepam-LK and SRO officials such as form PT Kustodian Sentral Efek Indonesia (KSEI) and PT Kliring Penjaminan Efek Indonesia (KPEI) yesterday.

Information gathered by Bisnis shows the meeting was attended by the Investigation bureau chief of Bapepam-LK Sar-jito and some other capital market authority investigation team.

Uriep could barely unveil the value of customers investment in the account of Optima Securities as it still depends on the verification process done by the securities management.

At the same time, President Director of PT Kliring Penjaminan Efek Indonesia (KPEI) Hoesen said Bapepam-LK and SRO have either established verification supervision team for Optima Securities customers.

He said the team will supervise the verification done by the broker from Optima Securities to recollect asset data of the corporate customers.

"The team here serves only as the supervisor for the verification process done by broker of Optima Securities, and thus it is not us doing the verification."

The verification is for customers other securities and stocks instead of fund as fund is harder to verify noting that the customers fund and securities accounts are still united.

As to him, the suspension to the securities company here is necessary to help ease the verification and investigation.

"The point is like the process of Sarijaya [PT Sarijaya Permana Sekuritas], but now it has less number of customers. Otherwise, there will be those coming in and out which will make the verification harder and harder."

The misuse of Sarijaya funds was unveiled by end of 2008 which made the securities company status here remains unclear so far. But the recorded customers assets could be refundable.

Investigation bureau chief of Bapepam-LK Sarjito recommended the customers with unmatched verification with data of the Optima Securities could report the securities management to the National Police. "They could make direct report."

Formerly lawyer of Optima Egi Sudjana said it will fulfill the call from Bapepam-LK to pay the obligation to the customers. But the suspension needs to be revoked so as to run the corporate business normally.

However, he expected the company could provide chance to have round table talk with Bapepam-LK to discuss the obligation value to be paid by Optima due to its default of KPD product. (Bisnis/iaa)

Rumor on Indosiar acquisition refuted

Wednesday, 28/04/2010 00:00 WIB

Irvin Avriano A.

Bisnis Indonesia

Rumor on Indosiar acquisition refuted

JAKARTA: PT Televisi Transformasi Indonesia (Trans TV) and PT Indosiar Karya Media Tbk jointly refuted the rumor on acquisition of Indosiar by the Para Group, the holding firm of Trans TV, owned by businessman, Chairul Tandjung.

Commissioner of Trans TV Is-hadi SK stated the rumor is not true noting that there is no talk about acquisition so far. "There is no talk about acquisition at all," he said in Jakarta yesterday.

However, Ishadi added the possibility of Trans TV to acquire Indonesia in the future given that Trans TV also plans to develop its broadcast business.

Separately, Public Relation of PT Indosiar Karya Media Tbk Gufroni Sakaril declined the notion that there had been negotiation involving Indosiar and Trans TV so far.

The rumor on Indosiar acquisition by Para Group emerged at the bourse early this week and thus was responded by the mounting stock price of Indosiar. Thus, the IDKM stock code here was deemed having unusual market activity.

Formerly, Para Group acquired 40 percent shares of Carrefour and posed itself as the major shareholder of the retail company here.

However, despite the refusal of the rumor, the Indonesia Stock Exchange (IDX) imposed suspension sanction for Indosiar stocks due to the swelling stock price by 143.9 percent.

"IDX needs to suspend the exchange for cooling down since April 27, 2010," said head of IDX transaction supervision Hamdi Hassyar-baini in the IDX public expose yesterday.

Hamdi said the Indosiar stock price had unusual fluctuation due to the cumulative rise by IDR177 or 143.9 percent as from the closing on April 16, 2010 at IDR123 into IDR300 on April 26, 2010.

IDX compliance and transaction supervision director Uriep Budhi Prasetyo added the bourse authority has called for Indosiar clarification which stated the rumor of Indosiar acquisition by Para Group was not true.

Urip said the stock of PT Eatertainment International Tbk is potentially suspended as the stock price mounted at unusual price ratio in the past several weeks.

"Their stocks could be suspended if it still moves wildly following the UMA [unusual market activity] statues," he said.

Thus far, the bourse authority has waitd for the clarification of Eatertainment on the rumor that the company is on divestment negotiation process with Peter Sondakh-owned Rajawali Group. (Bisnis/iaa/bsi)

Transaction cost to be intervened: Competition among securities getting unhealthy

Tuesday, 27/04/2010 00:00 WIB

Transaction cost to be intervened: Competition among securities getting unhealthy

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: The Capital Market and Finance Institutions Supervisory Agency (Bapepam-LK) eventually plans to intervene transaction cost and underwriting at securities with the new standardization regulation.

Chief of Bapepam-LK Ahmad Fuad Rahmany said the cost standardization should be made following the escalating unhealthy competition among securities companies.

"The point is that the market is no longer healthy. The only way is setting up regulation," he said at Bapepam-LK building in Jakarta yesterday.

Fuad said the unhealthy phenomenon of such a competition is obviously seen noting that some securities companies receiving and asking underwriting fee under 1 percent.

He said the plan will be questioned by the Business Competition Supervisory Committee (KPPU) as it was the case in the past. He said KPPU protested when the capital market authority plans to have securities standardization regulation.

Separately, Chief of securities companiesy and transaction bureau of Bapepam-LK Nurhadida pledged to talk about tariff and competition issues to the Indonesain Securities Companies Association (APEI) in the near future. "We will listen to their voice first," he said.

Coordinator of APEI Lily Widjaja was not available for comment on the regulation here.

But member of committee of APEI Mustofa said the association plans to propose the minimum transaction fee so as to prevent from uncontrollable drop of transaction and underwriting fee.

"We are discussing possible input on the minimum fee requirement while continue to comply with KPPU regulation. but the plan has not been talked with Bapepam-LK. We also plans to have study survey with other country."

Separately, president director of PT BNI Securities Eddy Siswanto understood the existing dilemmas of the capital market authority when it intends to regulate the fee because it is deemed the market mechanism.

However, it does not imply the core of unhealthy competition will have no solution. "As far as I knew, there is minimum fee requirement and it worked out well. So, it might be regulated that way."

Eddy said the minimum limit of fee appropriate with the given service is 15 basis points (bps) or 0.15 percent assuming 100 bps equals to 1 percent.

The figure is deemed appropriate if compared to the current fee set by the company at 20 bps for buy transaction and 30 bps for sell transaction.

Besides, unhealthy competition could slash the service quality given to the investors and decrease the quality and prudence principles among the capital market.

He said as early stage capital market players should make a deal. Then if it does not give any influence it is necessary to give a call or even stren measures form the capital market authority to mediate the pricing competition here.

Assertive measures are required upon noting that the unhealthy competition of transaction and underwriting fee. It is potentially to lead the capacities of some small scale investors to suffer from losses before closing it down. (Bisnis/iaa)

Mutual fund reached IDR117 trillion record

Tuesday, 27/04/2010 00:00 WIB

Irvin Avriano A.

Bisnis Indonesia

Mutual fund reached IDR117 trillion record

JAKARTA: Mutual fund hit the top at the level of IDR11758 trillion as from IDR116.88 trillion reached in March along with the soaring index which hit the record of 2,944 level.

Data of Bapepam-LK shows mutual fund asset under management increased by IDR698.13 billion as from last month. The similar data also shows the mounting investment product participation unit by 1.44 billion from 70.29 billion in March into 7173 billion yesterday.

Vice chairman of the Indonesian Mutual Fund Manager Association (APRDI) Legowo Kusumonegoro said the condition of stock and bond markets which break the records does not make him pessimistic with the domestic capital market condition.

"The stock price of Indonesian company is no longer cheap but we are optimistic the capital market continue to increase in the next 1-1.5 years. So investors would be better if prepare gradual buy strategy," he said yesterday.

Legowo who is also the president director of PT First State Investments Indonesia said the gradual investment strategy in relatively small investment could be independently applied or under the existing system in some sales agent banks.

Based on the case study in the company he chairs now investors tend to have mutual fund transaction based on the market condition. Unstable condition here is deemed risky with unpredictable market condition. (Bisnis/iaa)

Split sub account approved: Bapapem-LK and BI prepares to have joint supervision

Monday, 26/04/2010 00:00 WIB

Irvin Avriano A.

Bisnis Indonesia

Split sub account approved: Bapapem-LK and BI prepares to have joint supervision

JAKARTA: PT Kustodian Sentral Efek Indonesia (KSEI) got approval from BI relating to the scheme of sub account split of the capital market customers deposited at bank.

"We have just received letter from BI which approved the scheme or early this week," said KSEI President Director Ananta Wiyogo to Bisnis last week.

Now self re-gulatory oraganization (SRO) has consolidated four payer banks so as to provide applicable systems.

There are four payer banks appointed by KSEI namely PT Bank Central Asia Tbk (BCA), PT Bank Permata Tbk, PT Bank Mandiri Tbk, and PT Bank CIMB Niaga Tbk.

Ananta said despite the given approval, Bapepam-LK and SRO will only oblige the split of sub account of fund and stocks upon the readily executed system applied by the four banks.

Chief of Bapepam-LK Ahmad Fuad Rahmany tbe capital market authority plans to include the clause on sub account split as one of the substance of joint cooperation with BI. The memorandum of un-derstanding (MoU) will be signed in the near future.

"MoU will talk about the bank supervisory at capital market in general. The fund and securities of the customers sub account will be inclusive (in the MoU)."

Referring to the regulation of Bapepam-LK III.C.7 on securities sub account on settlement and deposit agency for customers fund and stocks in the sub account of securities company listed by the KSEI.

KSEI Director Trisnadi Yulrisman added the recently given BI approval reflects the data of securities customers sub account deposited at the payer banks. As to him, the previous discussion was on the bank confidentiality.

"The final result of the discussion is the data reflection which could happen if it gets approval from each customer which will participate in the agreement of account opening at their own brokers."

He ensured the split sub account program will not impose extra charge to the customers or securities given that it is basically like a new opening of bank account.

Securities company must not spend extra funds to better or adjust the system as the required systems are already materialized.

Trisnadi said the betterment and adjustment of a system will happen only to the payer banks but it is relatively easier as the current bank system has been interacted with the KSEI settlement system.

He said later the split and formation of customers fund sub account will be mandatory and thus customers could control their securities and fund account through one facility so-called AKSes (Securities ownership reference) provided by KSEI.

Trisnadi once said the number of customers sub account registered at the KSEI AKSes are about 9,161 sub accounts as from the total of 370,000. Trisnadi expected by end of 2010 all sub accounts will be registered at the AKSes.

Brokers have just opposed the policy of KSEI for setting up maintenance cost for inactive or dormant account. President Director of Finan Corpindo Nusa Edwin Sinaga now considered the policy here will be burdensome to brokers as they should pay maintenance cost which should have been the investors cost.

The closure of sub account is potentially to spark dispute among brokers and customers. Thus, brokers called KSEI to review the policy here.

Early the year, KSEI enacted the regulation on the new central custodian service regulation in which one of them stipulates the maintenance cost for dormant account worth IDR1 million per month. The cost is meant to call the owner of the account to close down the sub account without any fund or securities.

Would there be dormant sub account, the sub account holder should close down the account from KSEI statement of dormant account. But if it fails to close the dormant account, the holder should obligatorily pay maintenance cost. (Bisnis/iaa/faa)

Titan will increase utility

BI/exchanges

04/23/2010

Irvin Avriano A.

Bisnis Indonesia

Titan will increase utility

JAKARTA: PT Titan Kimia Nusantara Tbk targets to increase company's factory utility and its subsidiaries from 68% last year to 75% this year from a total production capacity of 450,000 metric tons. The production increase is targeted to be 337,500 metric tons.

Director of Titan Kimia David Hung Tsung Chao said the company recorded a production capacity utilization of plastic raw material polyethylene (PE) of 293,334 metric tons last year. Production increase, he said, made to minimize the number of company's production and is expected to increase their net income.

"Last year for the first time we've booked net profits after the acquisition from the old management, this year we expect to increase," David said after the annual general meeting of shareholders (AGM) yesterday.

However, he has not been able to peg the profit target this year because it depends on raw material prices and changing of market demand. The Company recorded net income of IDR350.81 billion last years, after booked a net loss of IDR562.31 billion in 2008.

He says the increase in raw material prices on 1stQ/2010 amounted to US$ 1,210 per metrik tons from the level of US$800 per metric ton during the same period last year making the company threatened to predict financial performance. However, he was optimistic that net income this year will be positive again like last year.

Director of Titan Kimia Bambang Budihardja added with the addition of production, the company hopes to increase the composition of the market share from 30% in 2009 to be higher this year.

David said that the local consumer absorb around 80% of the company production because domestic demand is still very large, and the rest is exported. The main export destination of Malaysia, while the rest were sent to China, Vietnam, and several other countries.

The company's AGM, continued David, decided not to distribute dividends because they still cover losses that occurred in the last few years after the transfer of shares of the company in 2006.

Titan Kimia Corporate Secretary Merciana Anggani said shareholders at the extraordinary General Meeting decided to appoint Ezani Bin Sheikh Mohamad as the new finance director.

Moreover, continued Merciana, the company also decided to expand its business lines the company as an importer and trader of plastic raw materials biaxially oriented polypropylene (BOPP). Additional type of business was done by changing the articles of association of the company. "We did not change the main business, there's just adding another business."

David said Titan Kimia subsidiary, PT Titan Petrokimia Nusantara who donate 90% of sales issuers, will budgeting capital expenditure of US$2.7 million this year. The company will use internal funds for the needs. Titan Petrokimia are currently in the bidding process of bond and sukuk I/2010 with total worth of IDR500 billion.

Metrodata plans non-preemptive rights

Irvin Avriano A.

Bisnis Indonesia

Metrodata plans non-preemptive rights

JAKARTA: PT Metrodata Electronics Tbk is planning to gain additional capital with non-preemptive rights scheme (non-HMETD). The company management will ask for its shareholder's approval in the extraordinary general meeting (EGM/RUPSLB).

The plan was revealed in the EGM agenda published by the PT Kustodian Sentral Efek Indonesia (KSEI) website today. The EGM and its annual general meeting will held on May 26th.

In addition to the approval for capital up sizing with non-preemptive rights, the company is also scheduled to discuss the company's last year financial statement.

Last year, Metrodata booked a net profit as much as IDR10.04 billion, lower than 2008 that booked at IDR29.95 billion level. The result is due to large operating expenses that increased from IDR202.69 billion to IDR255.36 billion at the same period.

The increasing operating expenses was primarily due to payroll expenses and the workers benefits that increased from IDR116.55 billion in 2008 to IDR166.54 billion last year.

Schroders aims at IDR2.5 trillion new mutual fund asset

Thursday, 22/04/2010 00:00 WIB

Irvin Avriano A.

Bisnis Indonesia

Schroders aims at IDR2.5 trillion new mutual fund asset

JAKARTA: PT Schroder Investment Management Indonesia targets the asset under management of Schroder 90 Plus Equity Fund worth IDR2.5 trillion for two years.

Marketing manager of Reksa Dana Schroder Indonesia Liza Lavina said the equity fund product here was targeted to collect IDR1 trillion funds up to end of the year.

"The target is not too much as we could collect IDR100 billion up to (yesterday) afternoon," she said yesterday.

She said the collection of mutual fund asset under management here was the largest ever collected by local investment managers from the open mutual fund marketing on the first day.

The marketing done by the company was done directly and it has not used bank as the sales distributor.

She said the company expected the 18 sales agents partnering so far with Schroeder could sell the product. But some agents willing to sell still waits for the permit from BI as the bank regulator.

The company targets the return form the product is far higher than the bourse growth this year as stock investment composition is very high.

The company allocates at least 90 percent investment portfolio of open mutual fund product to the equity traded at the bourse. As from the high stock composition, Liza said the company plans to invest on the stock with good fundamental.

The stocks opted by the company as the underlying assets are of those with good fundamental in terms of having big cap.

The stocks which will be taken by corporate investment managers are also limited only to those with high stock value growth.

This year the company targets to boost up the asset under management into IDR40 trillion or rose by 12.23 percent as from IDR35.64 trillion last year. (Bisnis/iaa)

License of mutual fund sales representative to be revoked

Wednesday, 21/04/2010 00:00 WIB

Irvin Avriano A.

Bisnis Indonesia

License of mutual fund sales representative to be revoked

JAKARTA: The Capital Market and Finance Institution Supervisory Agency (Bapepam-LK) predicted there would be thousands of licenses of mutual fund sales representatives (Waperd) to be revoked this year due to the permit review enactment.

Investment management bureau chief of Bapepam-LK Djoko Hendratto said Waperd which will be revoked is commonly due to the license holder is no longer active as the Waperd as from the total of 14,000 recorded Waperd.

"There are thousands which will be revoked and we are reviewing their permit," he said to press yesterday.

Bapepam-LK measure here is stipulated by the regulation No. V.B.2 on the Waperd license issued in 2006. The regulation requires Waperd with license to compulsorily enhance their knowledge through intermediate education program (PPL) once every two years after the enactment of the regulation.

Following the 2008 global crisis, Bapepam-LK and Finance Ministry early 2009 relaxed some capital market regulations including Waperd after relaxation revocation last year. The revocation here was effectively enacted end of March.

Formerly, Djoko said the capital market authority had made PPL since early the year with trainers of trainer (TOT) system to shorten training session to thousands of participants.

With the measure the capital market authority indicated that it would not revoke Waperd permit who is on the training process or has already registered for the training.

Chairman of the Indonesian Mutual Fund Managers Association (APRDI) Abiprayadi Riyato also shared the similar recommendation for not revoking the expired Waperd revocation.

"We hope license holders who are on PPL training must not be directly revoked."

Bapepam-LK now opens chances for the mandate of mutual fund industry data issuance to APRDI.

"We could even mandate the data to them and thus it should not go through us. But there will be process if it is carried out. The point is that now we have assisted by issuing data with a lot of improvements," Djoko said .

He said the opening of mutual fund data recently done by Bapepam yesterday showed that the capital market authority cared about the protection of investors and capital market players. One of the concerns here is by giving data which makes investors and capital market players to monitor the floating products at market.

"In the website later investors could report the indication of violation or misuse done both by investment manager and mutual fund seller."

Abiprayadi said the association will prepare itself if Bapepam will give mandate for data presentation to public. As to him, one of the examples on the given mandate is data presentation made in India.

"This has been done in India in which the mutual fund association, AMFI [Association of Mutual Fund of India], has got mandate from the capital market. We are ready if Bapepam-LK needs to give mandate to us."

From the published mutual fund data yesterday, the equity fund management declined by IDR825.96 billion or 0.7 percent as form DIR116.88 trillion last month into IDR116.05 trillion. But the equity fund unti of the same period shows the rise by 954.04 million units. (Bisnis/iaa)

The Damned United (2009): A thin red line between between ambition and determination

The Damned United (2009)

A thin red line between between ambition and determination

Irvin Avriano A.

for Myself

How far can we managed our will? The movie can makes us feel the drama that summoned inside somebody's head, with a beautiful, but not details, about football managing.

Based on a true story about the trash-mouth Brian Howard Clough (March 21th '35-Sept 20th '04), the greatest English club manager that England national team have not ever had. Even his garbage mouth was recognize and was ordered to shut by the Sting-like-a-bee Mohammad Ali.

He, with his sidekick Peter Taylor, succeeded waft Derby County into First Division, from a nothing club into everything for the Rams. But the most memorable moment about him is when he hoist Nottingham Forest into European Champions Cup winner, an achievement that never been attained by any English manager until this day.

The story started when he was hired to be the Leeds United manager in 1974, a club that stand in the top of the major league, and also former rival for his career whenn he took care of Derby. Leeds was abandoned by Don Revi at the time, the antagonist role, whose appointed as the English national team manager.

But the actual time setting is focused when he brings Derby County with dignity to topped the club in the Second Division League. The story itself jumped into two different times, forward and backward, swings depends on his emotional reflection.

The story leads into a remorse of Cough that let his mate, Peter, to manage Brighton & Hove Albion himself for money and to develop a new career. The rejection of Peter invitation is because Cough have other offering that he can't refuse, to take the manager chair of Leeds United.

Too bad, there is something bothering about the script, which can't dig deep into the success story of Mr. Cough himself because there is nothing special that showed to the audience about the amazing style of managing a football club into a winning team.

The role itself was well played by the actors, especially from a determined [but never shows the weaker side of emotion] play by Michael Sheen as Mr. Cough (Tony Blair in The Queen and Lucian from Underworld series), Timothy Spall as Peter Taylor (Wormtail in the Harry Potter saga), and Colm Meaney as Revie (Chief Miles O'Brien from Star Trek).

Mutual fund data is unveiled

Tuesday, 20/04/2010 00:00 WIB

Irvin Avriano A.

Bisnis Indonesia

Mutual fund data is unveiled

JAKARTA: BApepam-LK plans to re-open the mutual fund following the closure since the capital market creash in October 2008.

An informed invessment manager said information system will be called mutual fund industry (ARIA). "The soft launching of ARIA will be tomorrow (today)," he said in Jakarta yesterday.

He said the socialization on the mutual fund opening scheme has been held since Wednesday last week. Bapepam invited representatives of all investment managers in the stock exchange.

Bapepam alone has tried the system on the official website mid last year in which there was announcement that public could only access mutual fund monthly data and thus it was unlike the e-monitoring data presented previously.

Mutual fund data was closed since October 2008 shortly after the stock price slid to the bottom level of stock market due to the negative sentiment following the global capital market crash on the period.

At the time, Chief of Bapepam-LK Ahmad Fuad Rahmany said the reason for mutual fund closure was not only force majeure situation but also the call from mutual fund industry players and the improvement of information technology system.

The closure alone eventually made all mutual fund data issued by the investment managers (IM) and data of industry was no longer accessible both by public, investors, and IM.

IM participating in the ARIA socialization said the capital market authority also intends to restrict the data access as it needs log in and password. So, pubic could only have little part of data in the system.

When asked, Investment management bureau chief of Bapepam-LK Djoko Hendratto conceded the socialization information here. That was to show the preparedness of capital market authority in the mutual fund information improvement.

However, he refuted to unveil when the application system is to be released and how would be the form. "Just wait later. The point is that it is immediately opened. I don't want to promise anything. Just wait for tomorrow (today) to see the form," he said.

Separately, Taxation and regulation compartment head of the Indonesia Mutual Fud Managers Association (APRDI) Michael Tjandra Tjoajadi conceded the information and schedule of information system issuance.

Michael who used to be called for input in the Bapepam-LK policy making said there is positive side from the mutual fund disclosure for public and particularly for investor.

The information is expectedly not used by IM to cheat the other company. "We agree with the restriction of information as data is only for the relevant party." (Bisnis/iaa)

Matahari investigation near final: Customers of 15 securities summoned

Tuesday, 20/04/2010 00:00 WIB

Irvin Avriano A.

Bisnis Indonesia

Matahari investigation near final: Customers of 15 securities summoned

JAKARTA: The investigation on the alleged fake stock exchange of PT Matahari Department Store Tbk (MDS) to PT Meadow Indonesia has neared to final phase.

The Capital Market and Finance Institution Supervisory Agency (Bapepam-LK) said the investigation was done to 15 securities companies and that was done and led to 'some conclusions closing to an end."

Securities company and transaction bureau chief of Bapepam-LK Nurhaida said the bourse authority will summon 15 securities companies relating to the stock exchange of the retail company of the Lippo Group members here.

"There will be summon. Our investigation now gets more focus but not on the 15 securities but rater on the customers," she said to Bisnis yesterday without explaining the result here.

Nurhaida said the probe deals with the alleged fake stock exchange which boosts up Matahari stock price November- December 2009 prior to the announcement of emitter divestment action by the holding firm.

The divestment of 98 percent shares of Matahari was executed by the holding company, PT Matahari Putra Prima Tbk, to PT Meadow Indonesia. Meadow Indonesia is owned by the Citi Venture Capital Partners Ltd (CVC). Total of the divestment transaction value stood at IDR7.16 trillion.

Transaction of leverage buyout-an acquisition by loan financing-of Matahari acquisition happened after the Matahari stock, LPPF increased on October 28, 2009 when the price was IDR290 so as to hit IDR3,000 on January 29, 2010.

In the transaction, owner of the major shareholder of the new Matahari, CVC through Meadow Indonesia should obligatorily have tender offer to other MDS stock holders as stipulated by the regulation No.IX.F.1 on tender offer.

With the tender offer process, Service sector finance company assessment bureau chief Noor Rahman said the company has proven the implementation scheme.

He added that based on the regulation the company must also sell back the bought stocks from other investors from the tender offer within two years at the longest. He called the owner of Matahari to expand pubic investors possession so as to have ore liquid stocks.

President Director of Matahari Benjamin Mailool said the public shares possession rise would be better if it is the consideration taken by the new Matahari owner.. (Bisnis/iaa)

Adira ratings upgraded to AA

BI/exchange

19/4/2010

Irvin Avriano A.

Bisnis Indonesia

Adira ratings upgraded to AA

JAKARTA: PT Pemeringkat Efek Indonesia (Pefindo) improve the PT Adira Dinamika Multi Finance Tbk's bond rating and the rating company from level idAA- to idAA level. The rankings outlook were determined at stable level.

In their research released this afternoon, Pefindo assumed the ratings reflect the company's very good business position in the industry. In addition, the emitter have their portfolio well diversified business, strong financial indicators, and also strong support from its parent company, PT Bank Danamon Indonesia Tbk, that supports upgrading Adira ratings.

"However, the ratings were restricted competition in the automotive financing industry," said Pefindo analyst Danan Ditto and Dimas Aditnya today.

Adira Finance was established in 1990 as an independent finance company that initially focused on automobile financing. However, the company changed its focus on motorcycle financing after the financial crisis in 1997.

Company managed to improve its market position and gradually enlarge their business by implementing better business strategies amid strong demand for motorcycles in recent years.

In 2003, Adira back to finance car ownership and use of the opportunity of higher car sales as well as diversify their financing business. The company listed its shares on the Indonesia Stock Exchange (IDX/PT Bursa Efek Indonesia) in 2004, then acquired by the Bank Danamon in late 2009.

The Company currently employs as many as 15,957 employees whos working in its 319 offices comprising branches, representative offices, service points, kiosks, dealerships outlets, and collection points in major cities of Indonesia.

At the end of last year, Adira's shareholders are Bank Danamon consisting of 95%, Asuransi Adira Dinamika of 0.44%, and the public 4.56%.

Currently, IDX recorded Adira still has outstanding bonds which divided in five tranches worth a total of IDR680 billion. It consists of a series of Bonds II/2006 B and C tranches worth IDR180 billion and III/2009 series included A tranches, B tranches, and C tranches totaling IDR403 billion.

Bahana underwrites PTPN VII bond issuance: Self registration regulation to be deliberated

Monday, 19/04/2010 00:00 WIB

Irvin Avriano A.

Bisnis Indonesia

Bahana underwrites PTPN VII bond issuance: Self registration regulation to be deliberated

JAKARTA: PT Perkebunan Nusantara (PTPN) VII appointed PT Bahana Securities as the underwriter of medium term notes (MTN) issuance worth IDR400-500 billion.

"PTPN VII has appointed Bahana Securities as the bond issuance beating some state securities companies and other private firms in selection process," said a capital market player to Bisnis last week.

When asked, Director of Bahana Securities Andi Sidharta conceded the issue as saying that MTN will likely be divided into three tranches of which has the tenure of two, three, and four years respectively.

"We will issue in the near future. The process of issuance might take another month."

Andi said the widespread MTN issuance is due to the more prompt and practical issuance of such notes than bond process which has to undergo public offering. Let alone, if the emitter has good track record, it will be simpler.

Despite the issuance should go through limited bookbuilding, Andi said the process should undergo an offering process to the targeted investors.

IDX recorded PTPN VII still has the floating I/2004 of B series bonds worth IDR10 billion. The bond here had idAA- rating given by PT Pemeringkat Efek Indonesia (Pefindo).

Bisnis records MTN issuance has been mushrooming since last year. This year some emitters issuing MTN include PT Federal International Finance, PT Medco Energi In-ternasional, PT Perumnas, PT Serasi Autoraya, and PT Mandiri Tunas Finance.

PT Kustodian Sentral Efek Indonesia (KSEI) records there are 43 tranches of MTN listed last year. The number here doubled from 26 tranches in previous year MTN listing or 65.38 percent rise.

Separately, Bapepam-LK readies to issue self registration regulation will be immediately issued to help ease emitter planning for bond issuance.

"The self registration here will be issued promptly as the draft has been prepared long before," said Service sector company finance assessment bureau chief of Bapepam-LK Noor Rachman last week.

Noor Rachman said with the self registration regulation, emitter that needs to issue bonds must not have several registration. Self registration here is not only for rupiah but also for global bonds.

"For instance, there is emitter planning to issue IDR3 trillion bonds. it could have direct registration. Even if it is done gradually for example IDR500 billion first, it is allowed to do so," he said.

He said the gradual listing could be carried out within two years period at maximum. Each gradual value is all up to the emitter.

"When there will be change, emitter would only have an update. They only need to send notice paper to Bapepam-LK. It is no longer permit letter and it does not need to wait for the issuance effective statement. Bapepam-LK effective statement is only once."

However, not each emitter could use self registration noting that some requirements applicable here. for instance, emitter must not be in state of default. The rating should be above an investment grade."

Chairman of the Indonesian Emitters Association (AEI) Airlangga Hartarto gave positive response to the plan here. "We support if the regulation helps ease emitter that plans to issue bonds," he said. (Bisnis/iaa/10)

Erry left Delta Dunia to enter Astra

Monday, 19/04/2010 00:00 WIB

Irvin Avriano A.

Bisnis Indonesia

Erry left Delta Dunia to enter Astra

JAKARTA: Former IDX president director Erry Firmansyah plans to fill the position of commissioner of PT Astra In-ternational Tbk in August while leaving his post as commissioner with PT Delta Dunia Makmur Tbk.

"Erry will become Astra commissioner with Jonathan Chang. Jonathan is the representative of Jardin Cycle & Carriage Ltd, the major shareholder of Astra," said an executive involving in the commissioner change in Astra in Jakarta last week.

When asked, Erry gave no comment. " I cannot give any comment now. Just wait and see," he said.

In addition to being commissioner with Delta Dunia, Erry is currently the chief commissioner with PT Kus-todian Se-ntral Efek In-do-nesia and commissioner of PT Perusahaan Pengelola Aset.

Erry also becomes an independent commissioner for three emitters, PT Unilever Indonesia Tbk, PT Benakat Pet-ro-leum Energy Tbk, and PT Elang Mahkota Tek-nologi Tbk.

It remains unclear the reason for Erry to leave Delta Dunia, the coal emitter with the 38 percent plummet stock price this year but at the same time coal price has been climbing up along global oil price hike.

Delta DUnia stock price is practically due to the ruislag scheme of PT Berau Coal Energi owned by PT Recapital Advisors and some Delta Dunia new stocks which was announced only four months following the corporate private placement. (Bisnis/iaa/08/bsi)

Securities in discretionary fund is reviewed: Regulator studies set up of finance market instrument investment limit

Saturday, 17/04/2010 00:00 WIB

Irvin Avriano A.

Bisnis Indonesia

Securities in discretionary fund is reviewed: Regulator studies set up of finance market instrument investment limit

JAKARTA: Bapepam-LK reviews securities instrument placement in the investment portfolio of discretionary fund (KPD).

Chief of Bapepam-LK Ahmad Fuad Rahmany said the issue is included in the final draft of regulation on KPD No.V.G.6 on the customers fund management guidelines based on bilateral and individual discretionary fund agreement by investment manager.

"We have inserted the recommendation on deposit, clearing account, cash as the securities but there is certain limit. Only this, there is no other change," he said to Bisnis yesterday adding that until yesterday the regulation has not been deliberated yet.

Based on the analysis of Bisnis, Fuad and some other relevant officials of Bapepam-LK held a meeting on the finance service authority (OJK) with Finance Minister Sri Mulyani and relevant department or institutions and thus the regulation has not been deliberated yet.

The relaxation is given following the facilities given by Bapepam-LK previously in relation to the overseas securities in the KPD investment portfolio.

Both recommendations are contributed by the Indonesian Mutual Fund Managers Association (APRDI) and some other mutual fund industry players.

In the regulation early draft, the capital market authority banned the finance market instrument to become part of the investors investment portfolio managed by an investment manager (IM) using KPD scheme.

The instrument is only allowed in the portfolio early placement of investment.

Based on the information collected by Bisnis, Fuad has studied the finance market instrument investment limit set up in the KPD by 25 percent at maximum.

Formerly, Taxation and regulation compartment head of APRDI Michael Tjandra Tjoajadi said the recommendation on overseas securities and finance market instrument here had been addressed to the capital market authority.

When asked about KPD, Investment management bureau chief of Bapepam-LK Djoko Hendratto failed to provide any comment. "Just wait until the deliberation."

President director of PT Recapital Asset Management Bowo Witjaksono Suhardjo added the recommendation on bond market instrument here was related to the investment policy of some institutions whose investments were on the hand of IM.

"The usually have certain allocation composition stipulating the existence of finance market securities so as to be liquid in case of need for fund."

Legal assistance and regulation bureau chide of Bapepam-LK Robinson Simbolon said in addition to some industry players recommendations, the capital market authorities also added three clauses in the regulation transitional period.

First, three months grace period is given for KPD that has not deposited yet any fund at the custodian bank.

Second, a year period is given to KPD with assets under management worth less than IDR10 billion so as to increase the fund, or up to the due date contract.

Third, a year grace period is given to each KPD with large number of investors to split investment into individual contract. (Bisnis/iaa)