Eterindo bolsters palm oil business

Thursday, 24/06/2010 00:00 WIB

Eterindo bolsters palm oil business

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: Producer of biodiesel PT Eterindo Wahanatama Tbk increased its possession in two subsidiary firms as preparation for seeking IDR824 billin loans to develop the upstream business lines.

President director of Eterindo Immanuel Sutarto said the company spent IDR68.5 billion to increase possession portion at PT Maiska Bhumi Semesta and PT Malindo Per-sa-da Khatulistiwa up to 99.99 percent as from 43.31 percent and 43.06 percent.

"Our investment value by end of 2008 in both companies stood at IDR47 billion. With the soaring possession, the total of our investment value stood at IDR116 billion," he said after GMS of Eterindo in Jakarta yesterday.

Immanuel uses fund for growing the possession of Maiska Bu-mi and Malindo Persada which was taken from the divestment of minor shres of Eterindo in PT Petromidada and PT Eternal Buana Chemical In-dustries in 2008 worth totally IDR676 billion.

In addition to boost up the upstream business line, he said the additional ownership at Maiska Bumi and Malindo Persada is also meant to prepare additional funds and new investments which will be materialized next year.

The new investment here will be sought through rights issue, bond issuance, or bank loan. The required amount is IDR824 billion which will fully allocated for funding the palm oil plantation development.

Immanuel said the totally required funds for palm oil development is about IDR1.5 trillion. As from the needs, some IDR676 billion has been gained from the sales of PT Petromidada and PT Eternal Buana Chemical In-dustries.

"We will seek the gap of investment fund here through fund collection options such as rights issue so that our target of productive plantation by 2014 is attainable," he said.

He said the company targets the plantation could produce 130,000-160,000 tons of CPO by 2014. Some of the CPO will be for internal consumption and the rest for sales.

Based on the corporate biodiesel factory capacity in Gresik, East Java, managed by the subsidiary firm PT Anugerahinti Gemanusa, the portion of CPO for self consumption is about 70,000 tons.

In yesterday GMS, the company got shareholders approval for not sharing any dividend from the DIR10.41 billion net profits last year. The profit will be allocated as the additional capital work.

The GMS also agreed the resignation of directors boards filled by Yudianto Kosman and Very Yonnevil. Both will be substituted by Prasanta K. Choudhury and F.X. Widie Kastyanto.

In the market, Eterindo plans to boost up palm oil business is handled positively form the soaring sotck price of ETWA by 2.38 percent into DIR215. The market capitalization stood at IDR208.15 billion. (Bisnis/iaa)

Aqua readies for tender offer

Saturday, 12/06/2010 00:00 WIB

Aqua readies for tender offer

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: PT Aqua Golden Mississppi Tbk readies to have tender offer to public shareholders and does not change the reference pricing at the level of IDR450,000 per share unit.

Aqua President Director Parmaningsih said the price will be set up in the delisting process prior to becoming go private company.

The action is scheduled soon after the company got official notice from Bapepam-LK for continuing the go private process.

"We have just received the notice two days ago and has not defined yet the schedule for processing the document to Bapepam-LK. But we hope we can do it as soon as possible," she said yesterday.

The company effort to do the go private process deals with the completion of investigation by Bapepam-LK. The investigation execution was based on the complaints addressed by some shareholders who suspected the data manipulation in the process.

Real Sector Company Finance Assessment Bureau Chief of Bapepam-LK Anis Baridwan said Bapepam-LK does not find any violation so the company is allowed to continue the corporate action.

"The probe is over which marks that the process can go on. But if there is sanction from the investigation, I have no idea. Please ask the Investigation Bureau," he said.

He regretted the delisiting of Aqua from the capital market as the capital market will lose one stock of one emitter. But Bapepam-LK could not intervene the decision here as it is the decision made by the shareholders in the extraordinary general meeting of shareholders.

The company this year shared IDR1,800 per share dividend or DIR23.69 billion or 24.7 percent of the total corporate IDR95.91 billion net profits booked by the company last year.

Parmaningsih added that the company also allotted IDR72.22 billion funds from the net profits as the retained earnings.

"We allocated higher retained earning than our dividend as we usually have earlier purchase for our revenue, that is the packaging production."

The company is optimistic to tap a 12.75 percent increase of the net profit as from IDR2.73 trillion last year into DIR3.08 trillion this year due to the mounting consumer demands.

The large capacity of production serves as one of the corporate optimisms to boost the target this year.

The soaring sales equals with the water sales volume or increased by 10.31 percent this year as from 6.57 billion liters last year into 7.25 billion liters. (Bisnis/Iaa)

SUN price skyrocketing: Moody's increases Indonesia debt rating prospect

Tuesday, 22/06/2010 00:00 WIB

SUN price skyrocketing: Moody's increases Indonesia debt rating prospect

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: The government debt rating prospect from stable to positive level given by the Moody's Investor Ser-vices yesterday gave a boost to the government bond (SUN) trade and price at secondary market by 100-250 basis points (bps).

Based on the data of the Inter Dealer Market Association (IDMA/Himadsun), the SUN price index scored 159 bps from the level of 102.8 percent to 104.43 percent triggered by the massive buy of foreign investors upon considering the diminishing risk of investment.

"The buy action happened yesterday was the overseas investors typical larg amount of transaction. Rarely local investors buy in such a large amount of buy," said Fixed Income Division Head of PT Anugerah Securindo Indah Ramdhan Ario Maruto yesterday.

The skyrocketing SUN price was seen particularly to the FR007 series by 15 bps, FR0052 by 313 bps, and FR0040 by 145 bps. The mounting price continued the significant rally since a month before or last week in particular.

As to Ramdhan, SUN hike happened was not due simply to the upgrading prospect of Indonesia rating but also the positive sentiment of the appreciation of Yuan China leading to US dollar depreciation to almost all Asian currencies including rupiah.

The other reason is the time limit factor for foreign investors possession to the BI promissory notes (SBI) which led the investors composition of portfolio to SUN.

The portion of foreign ownership portion of SUN also increased into 24.68 percent by end of last week from 24.31 percent June 15. That was the top since the SUN issuance due to the surpassing position of April 29 of 24.61 percent.

The skyrocketing SUN price which is on contrary to the yield level here reflected the less expensive cost of fund borne by the government and also corporation to seek funding resource at the market.

The escalating SUN market situation also happened to the stock market. Yesterday, the index hit the top record along the history at 2,981.28 as from the previous record of 2,971.25 on April 30, 2010. The index was closed at robust position by 0.42 percent at the level of 2,941.90.

The soaring index also happened simultaneously to the soaring Asian regional bourse and global bourse driven by the sentiment of China to provide flexibility of yuan. Market considered the policy to upsize liquidity of global fund flow.

Moody's rating yesterday upgraded the outlook prospect of rupiah and global denominated bond rating in Indonesia from stable to positive level. Indonesia bond rating was set at Ba2 level.

The mounting rating prospect here also happened to the ceiling of global denominated bond rating from Ba1 level and the ceiling of global denominated deposit rating at Ba3 level.

The growing rating also forced Moody's to increase the rating prospect of two other companies, PLN and PGN from stable to positive levels. The rating of both firms was set at Ba2.

Moody's last rating action to Indonesia was on September 16, 2009 as from Ba2 level with stable outlook.

Separately, Deputy Governor of Bank Indonesia Hartadi A. Sarwono said the positive outlook given by Moody's showed the potential chances to increase Indonesia rating to the investment grade in the upcoming year still require two notches.

As to him, the revision made by Moody's was based on the expectation and it is time to change noting that Moody's rating is lower than rating given by S&P (BB/positive) and the Fitch (BB+stable).

Finance Minister Agus D.W. Martowardojo said the mounting debt rating encourage the government to maintain monetary and fiscal stability to meet the investment grade.

Economist of Mandiri Sekuritas Destry Damayanti said the so much awaited now is the re-rating story in which Indonesia is projected to be back to grad investment level." (Bisnis/iaa/agi/aca/hta/bsi)

Trimegah gained bank loan commitment worth IDR40 billion

Saturday, 19/06/2010 00:00 WIB

Trimegah gained bank loan commitment worth IDR40 billion

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: PT Trimegah Securities Tbk, securities company which listed on the stock exchange, got loan commitment worth DIR40 billion from PT Bank CIMB Niaga Tbk to support online trading.

"We have just signed a credit commitment worth IDR40 billion from CIMB Niaga," said Director of Trimegah Securities Karman Pamurahardjo after GMS in Jakarta yesterday.

He said the online trading program developed by the company is ready to launch and has been tried out to some customers. The loan commitment will improve the facilities like the company worth IDR330 billion.

The loans come from PT Bank Mandiri Tbk, PT Bank Sinarmas, PT Bank Permata Tbk, and PT Bank Central Asia Tbk. The loan is not maximally used yet, the company eyes on the issuance of short term promissory notes(PN).

The PN is the last choice after bank loan. "The loan must be used up. Even if later we issue PN, it is just a little amount."

At the same time, Commissioner of Trimegah Securities Avi Yasa Dwipayana added the GMS also appointed Sofjan Djalil as the corporate commissioners, and also Omar S. Anwar, Ubaidillah Nugraha, and Denny Rizal Thaher as directors.

The new three directors will add the other directors currently posed by Karman and Henry Jusuf. Ubaidillah was formerly the VP Strategy of PT Bank Mandiri Tbk, and Denny was the former president director of PT Manulife Aset Manajemen Indonesia.

Avi becomes the commissioner and hands over the president director position to Omar Anwar, the former vice president director of PT Pertamina. The former State Enterprise Minister Sofyan Djalil was appointed as the commissioner. President commissioner is filled by Christopher Teague. Other commissioner Sumantri Slamet resigned from his post.

He said in GMS the shareholders agreed to share IDR1 per share dividend or IDR3.65 billion or 17.23 percent of the DIR21.3 billion net profits last year.

Trimegah booked DIR188.51 billion revenues in 2009 from the brokerage service worth IDR87.09 billion, investment manager IDR45.99 billion, margin interest IDR33.38 billion, and underwriting IDR14.08 billion.

The change of boards of directors structure and dividend sharing information is practically got no response from market. The stock price yesterday was stagnant at the level of IDR125 with stock market capitalization worth IDR456.87 billion. (Bisnis/iaa)

Pefindo to Inject Capital to PHEI

Friday, 18/06/2010 00:00 WIB

Pefindo to Inject Capital to PHEI

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: Indonesia securities rating company PT Pemeringkat Efek Indonesia (Pefindo) confirms to inject IDR1 billion capital to PT Penilai Harga Efek Indonesia (PHEI/IBPA).

"We probably will inject them [PHEI] with capital, but we are still reviewing the value. It will probably be around IDR1 billion," informed President Director of Pefindo Ronald Tauviek Kasim to Bisnis yesterday.

He revealed the decision, which was nearly final, was not made by Pefindo Shareholders General Meeting held earlier this month since the amount was less than 10% of the equities injected by the rating company.

According to him, the decision on the amount of equities injected by Pefindo would be made by other directors soon.

The shareholders in PHEI at the moment are only self regulatory organizations (SRO) in the capital market consisting of PT Kustodian Sentral Efek Indonesia (KSEI), PT Kliring Penjaminan Efek Indonesia (KPEI), and Indonesia Stock Exchange (BEI).

The company has IDR30 billion in equities, which are divided equally among the three SROs, making each SRO own a 33.33% stake.

Previously, President Director of KSEI Ananta Wiyogo disclosed if Pefindo injected equities to PHEI, Pefindo might own a 3.22%--3.33% assuming the amount of equities injected was still IDR1 billion.

Ananta explained the old shareholders were sounding two options, namely selling SRO-owned shares or increasing shares in PHEI.

If Pefindo acquired new shares that PHEI was about to issue, Pefindo would control a 3.22% stake. However, if Pefindo acquired shares from the old shareholders, it would seize a 3.33% stake.

The Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) Regulation V.C.3 on Securities Price Appraiser allows Pefindo, as a non-financial institution, to control a 20% stake in PHEI.

Ananta also argued the SROs actually hoped for new investors other than Pefindo in PHEI.

"We want there will be other parties to avoid an impression that Pefindo is being prioritized," Ananta said last week.

Director of PHEI Hasan Fawzi said Pefindo's plan to inject equities was the authority of the company's shareholders.

However, he viewed that what PHEI wanted was a strategic partnership with Pefindo. (Bisnis/iaa)

Multistrada gets US$185 million loans: Summarecon negotiates IDR250 billion loans

Friday, 11/06/2010 00:00 WIB

Multistrada gets US$185 million loans: Summarecon negotiates IDR250 billion loans

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: PT Multistrada Arah Sarana Tbk, car and motorcycle tire producer, got US$185 million loans for 2010 expansion.

Director of Multistrada J. Sukarman said the loan was attained from the syndicated banks of PT Bank Internasional Indonesia (BII), PT Bank CIMB Niaga Tbk, HSBC, and Credit Union from Germany with US$40 million loans.

" In addition to the expansion, some of the loans or US$30 million will be allotted for working capital to support the soaring production," he said in Jakarta yesterday.

The production rise here is the mounting production of car tires from 16,000 tires per day into 22,500 tires per day by end of the year. Early next year, the capacity will be 28,500 tires per day.

"With expanding production capacity here, the company targets to grow the revenue by IDR2.2 trillion and IDR5 trillion next year. The capital expenditure budget this year is US$150 million and we have spent US$15 million," he added.

Despite the outstanding debt of US$40 million and US$16 million should be paid quarterly, the company is optimistic the additional US$185 million loans will not worry the debt to equity ratio. Last year the company booked IDR174.86 billion net profits and this year the net profit is estimated at IDR152 billion.

Regarding the acquisition scheme of PT Astra International Tbk for tire company this year, President Director of Multistrada Pieter Tanuri claimed to be ready for Astra acquisition. But he fails to detail the amount of the stock offer.

Separately, property developer PT Summarecon Agung Tbk has been negotiating loan with a private bank to fund the IDR250 billion Summarecon Serpong Mall project.

President director of Summarecon Jo-hanes Mardjuki said the loan is part of the debts allotment as the capital expenditure worth IDR800 billion up to next year.

"We allocate the capital expenditure for Manara I apartment, Harris Hotel, Summarecon Bekasi phase I, and Summarecon Serpong Mall. But, we cannot name the bank identity for the IDR250 billion loans as it is not finalized yet," he said.

Johanes added the loan will complete the IDR250 billion loans provided by PT Bank Mandiri Tbk to finance infrastructure development in Summarecon Bekasi.

With that loan, the regulation requires the company to change Bank Mandiri as the trustee board of the II/2008 bonds and I/2008 sukuk to PT Bank Rakyat Indonesia Tbk. (Bisnis/iaa)

6 investment managers agree for merger

Wednesday, 16/06/2010 00:00 WIB

6 investment managers agree for merger

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: The effort made by Bepepam-LK to put aside investment manager (IM) with limited capital less than IDR25 billion from the bourse has succeeded upon noting that six out of 99 IMs have merged.

Investment Management Bureau Chief of Bapepam-LK Djoko Hendratto said the merger is done along with the capital market authority to increase the requirement of capital placement for IM as from IDR5 billion into IDR25 billion.

Merger is the feasible option to fulfill the requirement of the minimum capital rise here. IM has adjusted to the condition. "Based on the report, there have been six (IM) companies merged but I forget their names," said Djoko in Jakarta yesterday.

Finance Ministry plans to apply new regulation stipulating the IM capital placement into IDR25 billion as required by the revision of Finance Minister Decree (KMK) No.179/010/2003.

The regulation revision so far is still in seeking market players input. But in the draft, it is mentioned IM proposing for new permit should prepare IDR25 billion capital as from earlier requirement of IDR5 billion.

Responding to the revision of new regulation, Bapepam-LK called IM to have self adjustment. The regulation will be enacted next year. Bapepam-LK then is encouraged to increase IM capital placement up to IDR15 billion.

Djoko also said the merger is one of the option for IM with less than IDR25 billion capital. The option for selling the license may not be done for Bapepam-LK prohibition.

IM license sell and purchase is still banned because new IM license is still under suspension since 2007 which will then be opened in quarter III/2010. But capital market authority still focuses on the licensed IM evaluation.

"We hope the evaluation of each IM will prevent from permit sell and purchase which causes the change of the responsible management to the company operational," he said.

Now IM with less than IDR25 billion capital participation is only one or two as reflected from the many companies issuing RDPT stipulating the IDR25 billion capital participation.

Djoko statement is against the data of the mutual fund information center fo Bapepam mentioning the 25 IM with less than IDR25 billion capital. But Djoko ensures the data is not fully updated yet. (Bisnis/iaa)

SBI restricted, SUN price mounted: Corporate bond emitter to get benefited

Friday, 18/06/2010 00:00 WIB

SBI restricted, SUN price mounted: Corporate bond emitter to get benefited

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: The restriction of investment period at the BI promissory notes lead to the much more fund flowing to bond market and mounting the government bonds (SUN) pricing.

The SUN price index the last three weeks sharply jumped by 357 basis points. Data of the Government Bond Traders Association (Himadsun) shows that SUN index climbed up since May 26 hitting from the 98.34 percent level to 102.06 percent yesterday.

On contrary, the yield of SUN with 10 years tenure as the target plunged sharply to the lowest level since June 2005. The yield of FR0031 SUN series maturing in November 2010 decliend by 79 basis points from 9.28 percent on May 26 into 8.49 percent yesterday.

The government discourse to have foreign capital flow restriction last year finally resulted in the investment restriction of SBI by stipulating obligatorily the investors here to hold the instrument for one month at minimum.

The policy will be implemented by July 7 to both foreign and local investors. However, the central bank statement prior to the deliberation of the policy has boosted up the incoming capital to bond market.

Head of Debt Capital Markets of PT NC Securities Heru Helbianto predicted the better SUN market condition will continue with the SBI investment restriction.

"Investment profile of SUN and SBI investors are different, but later there will be little diversification dealing with the restriction problem here to share investment portfolio of each investor," he said yesterday.

He said investors in SBI market has short term profile unlike the SUN investors profiles.

PT Penilai Harga Efek Indonesia (PHEI/IBPA) President Director Ignatius Girendroheru said the price rally has happened upon the worsening European market sparked by the Greece debt crisis.

The falling SUN yield benefits the company with the bond issuance scheme because SUN yield becomes the standard of coupon or corporate bond interest setting. The companies eyeing bonds include PT Selamat Sempurna Tbk, and PT Srana Multigriya Finansial.

Furthermore, BI will also issue 9 and 12 months tenure instruments to keep the capital inflow longer in Indonesia.

"One positive thing for the bond market of BI regulation is the investors that do not plan to buy SBI will play with bond due to the absence of instrument restriction," said analyst of PT Mandiri Sekuritas Handy Yunianto as quoted by Bloomberg yesterday.

Data compiled by HSBC Holdings Plc shows SUN has provided yield up to 10.5 percent this year or considered the best performance as form the other 10 Asian bond markets.

Data of the debt management directorate general per January to June 15 shows that foreign investor possession increased form DIR115.02 trillion into IDR149.32 trilion or 19 percent into 24 percent as form the total of tradable SUN worth IDR590.15 trillion into IDr614.03 trillion. (Bisnis/iaa/pul)

SMF readies to issue IDR1 trillion bonds

Friday, 18/06/2010 00:00 WIB

SMF readies to issue IDR1 trillion bonds

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: PT Sarana Multigriya Finansial (SMF) plans to issue KPR-based bonds with sharia principel targeting to tap IDR1 trillion proceeds.

"Each bond will stand about DIR500 billion. Now we are preparing the KPR which will become the asset of the KPR-based product," said SMF President Director Erica Soeroto to press yesterday.

The bond issuance here is the obligation for the company as the effort to seek fund which will be followed up by channeling financing to the KPR market.

Now the company is on process of finalizing KPR financing channeling with a state bank worth IDR500 billion which will be channeled to 600 debtors.

At the same time, the company offers the III/2010 bond coupon at 9--9.4 percent and 9.45--9.85 percent worth totally IDR800 billion in the near future.

"The company and underwriter use the reference of the yield of FR0018 and FR0019 government bond series June 16 plus premium," said Director of Investment Banking Division of PT Danareksa Sekuritas Tulus Nababan.

Danareksa Sekuritas is one of the underwriters of the joint issuance with PT CIMB Securities Indonesia.

In public expose yesterday, Erica said the emitter plans to issue bonds in two tranche with 2 and 3 years tenure.

"All the proceeds will be allotted for channeling KPR (housing loans)."

She said KPR in Indonesia still has less market than the GDP or only 2 percent. This is very small if compared to other country like India which is 7 percent of the GDP.

The company still has I/2009 bond series worth IDR300 billion maturing in July with 10.125 percent coupon, the II/2009 bond series worth IDR251 billion maturing this year with 9.5 percent coupon.

SMF still has medium term notes (MTN) I/2010 worth IDR188 billin maturing next year and 2012.

Director of SMF Sutomo said the maturing bond will be paid using internal cash instead of the bond issuance proceeds.

He said the company this year targets to tap IDR80 billion net profits as required in the corporate work plans and budget (RKAP) 2010. (Bisnis/iaa)

PTPN VII start issues MTN

BI/bursa

15/6/2010

Irvin Avriano A.

Bisnis Indonesia

PTPN VII start issues MTN

JAKARTA: PT Perkebunan Nusantara (PTPN) VII start issues their II/2010 medium term notes (MTN) with total worth IDR500-700 billion this week.

Based on PT Kustodian Sentral Efek Indonesia (KSEI) website from early this week to today, the debt-notes emitters has issues two tranches from the series, namely A tranche that issued in 11 June worth IDR50 bio, and B tranche that issued in 14 June worth IDR200 bio.

The coupon has been set for 9% per annum for each tranches that tenured for a year.

PT Bahana Securities Director Andi Sidharta, as the single underwriter of the issuance, can not explain the details of the bond at the time.

"But the issuance will take action in several tranche, depends on the emitter's needs," he told the press on Monday.

In a rating research on June 3rd, PT Pemeringkat Efek Indonesia (Pefindo) Analyst Niken Indriarsih told that the issuance will give the emitters fund to replanting program.

In those research, Pefindo affirms A+ ratings for PTPN VII. But the rating outlook already revised into negative level from stable level because of the increasing leverage concerns.

The ratings itself reflected the natural CPO and rubber stable demand and well diversification of its products. But the rating also constrained by the leverage, high supply of CPO and rubber from external plantations, price fluctuation, and unpredictable climate.

The company already have outstanding bond I/2004 worth IDR10 bio and MTN I/2009 worth IDR300 bio. Both debt issuance will mature in January and March 2011.

Permission for Investment Managers Reopened: Association Asks for Clarification about IDR25 Billion Payable Equity Requirement

Tuesday, 15/06/2010 00:00 WIB

Permission for Investment Managers Reopened: Association Asks for Clarification about IDR25 Billion Payable Equity Requirement

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: The Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) confirms new permissions for securities firms and investment managers will be issued again by July or the third quarter.

Chariman of the Bapepam-LK Ahmad Fuad Rahmany said the permit issuance reopening was related to the revised Minister of Finance 179/010/2003.

"We can issue permits again to investment managers by the third quarter," he informed last weekend.

New permits have been suspended since 2007 to impose order on the high number of investment managers.

In that year, the mutual fund market was resurgent after it slumped in 2005. Therefore, the Bapapem-LK viewed the industry's fundamentals had to be maintained by tightly monitoring investment managers.

The suspension once discouraged several new investment manager candidates, such as Deutsche Group, DBS Group, and Kim Eng Securities.

At the same time, however, several irregularities in the investment management industry had been uncovered, such as the cases of PT Optima Kharya Capital Management and PT Synergi Asset Management.

As of the end of March 2010, Data by the Bapepam-LK recorded there were 99 registered investment managers. In the meantime, the Bapepam-LK's Mutual Fund Data Center recorded only 90 registered investment managers.

In the Minister of Finance draft, one of the important articles is a requirement for a new investment manager to have a payable equity of at least IDR25 billion.

The registered investment managers are given a year to adjust with the new requirement, with IDR15 billion in payable equity to be paid this year.

Vice Chairperson of the Indonesian Mutual Fund Managers Association (Asosiasi Pengelola Reksa Dana Indonesia/APRDI) Bowo Witjaksono Suhardjo hoped the capital market authorities would allow investment managers that could not fulfill the IDR25 billion requirement to merge themselves.

He added another option of selling shares or permits should also be allowed to meet the principle of fairness.

"It is because there has not yet been any clear explanation why the payable equity should be fixed at IDR25 billion. Previously, the requirement only applies to private equity mutual fund."

Bowo viewed there had been an impression that the authority wanted to reduce the number of investment managers in a subtle way.

The new organizers of the association, he continued, also wanted to fight for the segmentation of investment managers based on their activities and payable equity, which was international common, like already practiced by Singapore.

According to Bowo, the requirement had made it difficult for several investment managers interested in the mutual fund industry that had no sufficient capital.

However, Fuad asserted currently there were no regulations limiting investment managers to merge their businesses.

"What is prohibited is if they [investment managers] still have unsettled problems."

Previously, Investment Management Bureau Chief of Bapepam-LK Djoko Hendratto disclosed the capital market authority delayed issuing permits for merger or change of majority shareholders in investment managers due to the suspension period.

In February 2010, the Bapepam-LK revoked the permits of Brahma Capital and Danpac Asset Management (PT Danpac Investama). Earlier this month, the authority also suspended the sale of PT Manulife Aset Manajemen Indonesia mutual fund sold by its holding company, PT Asuransi Jiwa Manulife Indonesia (Manulife Indonesia).

Revoke permit

Separately, the Bapepam-LK yesterday revoked the permits of investment manager, broker, and underwriter PT Eurocapital Peregrine Securities after the case has been processed since 2008.

Based on the explanation on the official website of the capital market, Eurocapital is considered to have violated regulations on repurchase agreement (repo), adjusted net working capital, and undisbursed mutual fund.

The decision of Fuad Rahmany reads that the company violates the Bapepam-LK Regulation V.G.1 on Behaviors Prohibited for Investment Managers, Regulation IV.B.1 on Guide to the Management of Collective Investment Contract Mutual Fund Management, and Regulation V.D.5 on Adjusted Net Working Capital Report.

In addition, the company has also violated Article 27 clause (1), Article 36 (b), 37 (a), and 45 of Law 8/1995 on Capital Market.

The Bapepam-LK found PT Duta Anggada Realty Tbk had made repurchase agreement transaction without the permission of the owner of the collateral shares, Tower Track Ltd, which is the customer of Eurocapital. The share is made as collateral to the Plantation Pension Fund.

In the transaction, the company also bought Duta Anggada stock (coded DART) from Tower Track for the two mutual funds managed by the company, namely Reksa Dana Euro Peregrine Berimbang Plus and Reksa Dana Euro Peregrine Equity.

Due to the transaction and transaction-related actions, the company could not disburse the mutual fund to its customer, Asuransi Jiwasraya.

The company is also found guilty for promising fixed return to its customer, Wahjudi of PT Reasuransi Nasional Indonesia, for its discretionary fund. The product also violates regulations since it isn't placed in an account separated from the company's account.

The case continued since President Director of Eurocapital Jodi Harjanto was in conflict with President Commissioner Rudi Rusli after the Bapepam-LK investigated the case.

Rudi even once alleged several Bapepam-LK officials of receiving money from Jodi to release the president director from legal litigation. (Bisnis/iaa/faa)

Pefindo cut down Bakrieland rating outlook: Management held road show to Singapore & Hong Kong

Tuesday, 15/06/2010 00:00 WIB

Pefindo cut down Bakrieland rating outlook: Management held road show to Singapore & Hong Kong

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: PT Pemeringkat Efek Indonesia (Pefindo) cut down the rating outlook of PT Bakrieland Development Tbk, the Bakrie Group property line, from stable to negative level in anticipation of weakening ratio of the emtier cash flow protection plummet.

In yesterday research, analyst of Pefindo Vonny Widjaja said the company, bonds, and sukuk rating set at idBBB+ level reflects the robust position of the company as one fo the largest national property developers with good quliaty asset.

But the rating is restricted by some factors. "The factors here are the emitter aggressive business expansion which mostly funded by loans and the sensitive characteristic of property industry to the macro economy condition," the research said.

Pefindo also recorded that the company now owns I/2008 bonds worth DIR500 billion and sukuk II/2009 worht DIR150 billion. The shareholders up to March consists of CGMI 1 Client Segregated Securities with 24.38 percent portion, PT Bakrie & Bro-thers Tbk 10.44 percent, and public 65.18 percent.

Currently the emitter is on rights issue process whose funds will be allotted by the company to acquire some shares of PT Bukit Jonggol Asri from PT Sentul Citi Tbk.

Management of Bakrieland currently readies to have non deal roadshow to Singapore and Hong Kong this week to study the investors interests to the corporate rights issue.

President Director of Bakrieland Hiramsyah S. Thaib said the gradually recovering financial market condition has driven the positive responses to the corporate rights issue.

"We get positive response from market on the rights issue scheme. To get their interests, we will have road show to Singapore and Hong Kong this week," he said yesterday.

Hiramsyah said despite the overseas road show, the domestic investors still have the larger allotment portions.

Now Bakrieland foreign shareholders are 40 percent and the other 60 percent is the domestic investors.

"Noting that domestic investors are larger in number, the rights issue will be sold as domestic investors will get more allocation," he said.

Bakrieland plans to have IDR5.4 trillion rights issue to acquire 15,000 hectares plots of land.

The rights issue shares are aobut 33.75 billion. The fresh fund collected here will be used as the acquisition capital in Jakarta and eastern center part to south of Bogor, West Java.

The issued stocks are 169 percent higher than the current Bakrieland of 19.96 billion shares. Each of the existing shareholder will have the rights to buy 1.7 new shares so the rights issue ratio is 1:1.7 times.

The emitter will use the proceeds tapped from the rights issue to acquire 20 percent shares of PT Sentul City Tbk.

As to Hiramsyah, the acquisition has strategic partnership so the company could enter PT Bukit Jonggol Asri, one of the Sentul City untis, to acquire land bank owned by the company.

The acquisition of major shares of Bukit Jonggol will increase the corporate land bank by 11,000 hectares. The company will also acquire 1,000 hectares land in Lido, Sukabumi.

Bakrieland will also expand the land bank surrounding the Epicentrum project in business compound Kuningan, South Jakarta.

"Thus the total land bank we plan to acquire is 15,000 hectares," said Hiramsyah.

At the same time, the company will place the capital for the Ciawi-Sukabumi toll road development.

Through its subsidiary firm, PT Bakrie Toll Road, Bakrie has owned 85 percent ownership at the toll road developer here. (Bisnis/bpj/iaa)

HSBC increased credit to Tigaraksa

Tuesday, 15/06/2010 00:00 WIB

HSBC increased credit to Tigaraksa

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: HSBC increases credit facility to PT Tigaraksa Satria Tbk, consumer goods distributor and producer, from IDR100 billion into IDR125 billion in April.

Based on the finance statement of the company March 2010, emitter loan facility from HSBC stood at IDR100 billion and some IDR57.4 billion have been used maturing in April 2010.

"Loan is extended another next year and added by 25 percent as from the early facility of IDR100 billion," said Director and corporate secretary of Tigaraksa Satria Troy Parwata to press yesterday.

But he said the company has not planned to use the debt facilities here currently.

The finance statement also shows that the company still has due date debt in June to PT ANZ Panin Bank worth IDR30.84 billion as from the total facilities of IDR100 billion. As to Troy, the debt is still in discussion and has not been decided yet by ANZ Pa-nin.

In addition to HSBC and ANZ Panin, the company also still has mature debt in September this year from PT Bank CIMB Niaga Tbk worth IDR80 billion. The total loan facilities from Bank CIMB Niaga to Tigaraksa stood at IDR132 billion.

Troy said the company has not decided to expand or to pay the debt provided by CIMB Niaga as the discussion is still underway. The company has just signed a cooperation with CIMB Niaga in the cash management solutions program.

The company plans to minimize the number of accounts in some banks in which the company saves the deposits. There are 100 bank accounts so that it is hard for the company to monitor the finance.

The company plans to cut off the bank account into 75 to make it efficient by end of the year and next year is targeted to reach 30 banks for efficient account monitoring.

Vice president director of CIMB Niaga Catherinawati Hadiman said the service of cash management can provide accessibility to the company because every transaction is centralized in one account so as to help ease the identification.

"We want to provide accessibility for the company so as to focus on the core business," he said.

With the cooperation cash management it can increase the cheap funds, particularly clearing accounts and fee based income from the corporate client such as Tigaraksa.

"That could increase our clearing account composition and fee based income. Some 25 percent is the contribution from the cash management," he said.

Emitter also aims at the plant leasing contract in Sleman, Yogyakarta, with two brands of milk.

Besides, the company also targets the new distribution contract with at least two brands of consumption goods.

The stock price of Tigaraksa ,TGKA, was stagnant at IDR400 on the bourse closing bourse so that the market capitalization stood at IDR367.39 billion. CIMB Niaga, BNGA, stock price was also stagnant at IDR1,020 with IDR24.41 trillion market capitalization. (Bisnis/iaa/05)

Fajar Wisesa rating outlook improved to positive

BI / exchange

14/06/2010

Irvin Avriano A.

Bisnis Indonesia

Fajar Wisesa rating outlook improved to positive

JAKARTA: PT Fitch Ratings Indonesia upgraded long-term national rating of PT Fajar Surya Wisesa Tbk from BBB+(idn) level to A-(idn) level due to the increase of company's EBITDAR.

In a rating statement by Fitch Ratings today noted the financial performance was affected by increased domestic demand from containerboard and boxboard since the 2ndQ/2009.

Issuers managed to increase earnings before interest, taxes, depreciation, amortization, and rent (EBITDAR), which was recorded at the end of 2009 worth IDR569.6 billion compared with at the end of 2008 amounted to IDR532.6 bio in 2008. Company also listed EBITDAR amounted to IDR191.5 bio in 1stQ/2010.

In addition, research also mentioned the company's leverage level has also improved because of debt reduction as reflected by the ratio of net debt to EBITDAR of 2.3 times at the end of 2009 compared with 3.1 times at the end of 2008. The Company recorded a leverage of 1.5 times in 1stQ/2010.

The research also shows long-term ratings outlook for Fajar Wisesa local and foreign currency also upgraded by Fitch Ratings from stable to positive levels. Rank companies set back on B level.

Fitch has also set the bond rating of Fajar Wisesa subsidiary, Fajar Paper Finance BV, worth US$100 bio in B level and recovery rating at the level of RR4. The bonds were fully secured by Fajar Wisesa.

The company established in 1988 and listed in the market in 1994. The company produces sack kraft paper for packaging of cement, fertilizer, and agricultural products, linerboard and corrugated medium paper for carton box packaging and coated duplex board for display packaging.

Fajar Wisesa intend to invrease their production by buying a new paper machine that could jack-up their production from currently 700,000 metric ton per year to 1,000,000 metric ton per year.

RI unready to join Asean Link: Bapepam-LK revises go public takeover regulation

Monday, 14/06/2010 00:00 WIB

RI unready to join Asean Link: Bapepam-LK revises go public takeover regulation

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: The unpreparedness factor of the authority, regulation, and securities profile inequality have made Indonesia hard to join the join cooperation among bourse authorities so-called the Asean Link project.

Committee Coordinator of the Indonesian Securities Company Association (Asosiasi Perusahaan Efek Indonesia/APEI) Lily Widjaja said she has not made any decision whether or not to join the Asean Link because it should ensure the preparedness of the cooperation here.

"There must be a better self preparation so as not to harm us. We need to ensure that we are favored due the existence of our expected added value. There are many things to improve prior to joining the Asean Link," said Lily to Bisnis yesterday.

Asean Link is the cooperation with the capital market authorities in Southeast Asia which could help ease securities and bourse of the country members to have direct transaction.

President director of PT Danareksa Sekuritas Marciano H. Herman said Asean Link has positive impact and yet negative to the capital market in Indonesia.

"The positive side is that broker from other country could have access to our capital market which could expand the consumer basis. Emitter listing is benefited with their more expansive market."

Marciano said prior to joining the Asean Link scheme, local broker should have equality with international broker.

"There have been many international brokers in Indonesia. Meanwhile, there is only less Indonesian broker abroad. The inequality should be taken into consideration."

He said if Indonesia decided to join with the business transaction through Asean Link scheme in the near future, it is likely to arise more negative impact because it might kill the local securities and broker.

"So far our securities and banks are difficult to open overseas branch offices. Meanwhile, there are many foreign securities and banks present in Indonesia. The point is that there must be equality first."

Bapepam-LK claimed its unpreparedness to join in the Asean Link among the other five other country members.

Chief of Bapepam-LK Ahmad Fuad Rahmany said the participation f Indonesia could be ensured when the market player and capital market authority of Indonesia have been able to compete against the other countries.

"Our securities are not yet capable (to compete with overseas securities) and therefore we should re-consider to join the Asian Link. If it benefits Indonesia in the short and long run, we will join then," he said last week.

He claimed to have proposed other Asean Link country members to review the participation of Indonesia capital market in the association is suspended through to 2013.

But now Bapepam-LK has not ensured the participation when the proposal was presented. "AT the time we said "maybe later in 2013', but it is just possibility."

One of the reasons is that it is intended to make the global capital market players feel at home and bolster their business domestically here.

Besides, the bargaining power of Indonesia as the large country with larger market potential serves as the one of higher bargaining powers than the other countries .

On the other side, Bapepam-LK tries to make efficient period of emitter major shareholding takeover drafted in the regulation revision as included in the Bapepam-LK revision draft IX.H.1 on the takeover of go public company.

Real Sector Company Financial Assessment Bureau Chief of Bapepam-LK Anis Baridwan said the regulation revision here is rather dealing with synergy of the XF.F.I revision on the tender offer of go public company.

"Both regulations need synergy. That is the point," he said to press last week.

Service Sector Company Financial Assessment of Bapepam-LK Noor Rachman added that the regulation revision also scrutinizes four conditions which bring about extension of book building period.

The four conditions here include the correction of stock exchange correction for three consecutive days, bourse closure, emitter stock exchange suspension, and riots or alike which potentially troubled the emitter operational and existence.

"It was never mentioned before. So the conditions for period expansion here is still awkward."

But both failed to detail the would-be changes made by the capital market authority in the regulation revision here. (Bisnis/10/iaa/faa)

Bapepam-LK: Indonesia still not ready for ASEAN Linkage

BI / exchange

11/06/2010

Irvin Avriano A.

Bisnis Indonesia

Bapepam-LK: Indonesia still not ready for ASEAN Linkage

JAKARTA: The Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) states the market are not ready to merge into ASEAN Linkage along with five other member states.

Chairman of Bapepam-LK Fuad Ahmad Rahmany said Indonesia's participation can only be ascertained when the market participants and the Indonesian capital market authority has been able to compete with other countries.

He namely other members are Malaysia, Philippine, Vietnam, Thailand, and Singapore.

"We and our [securities companies] are not able to [compete with foreign securities companies], so we still think back to join [with ASEAN Linkage]. If it give benefit to Indonesia in the short and long term, then we joined," he told the press today.

ASEAN Linkage is the cooperation ties with the capital market authority in Southeast Asia a region countries that can facilitate to trading securities and stocks in each of its members to transact directly.

He said he had submitted a request to the ASEAN Linkage member countries to assess the participation of the Indonesian capital market was delayed until 2013. However, he said, the current capital market regulator has not yet confirmed its participation at the time it was submitted.

"At that time I said 'maybe later on in 2013', but it was also just a possibility."

According to him, one of the reasons is the desire to create a global capital market participants at ease and establish operations in the country. In addition, he said, Indonesia's bargaining position are a large country and has a greater market potential compared to other countries.

Last year, Indonesia invited all of the member of ASEAN capital market community. It give a straight statement and answer from the local capital market players that the country haven't ready and won't join the linkage in a short time.

Batavia Aset Manajemen issues Proteksi Syariah Mataram fund

BI/bursa

11/6/2010

Irvin Avriano A.

Bisnis Indonesia

Batavia Aset Manajemen issues Proteksi Syariah Mataram fund

JAKARTA: PT Batavia Prosperindo Aset Manajemen, a local invesment manager, formed a new protected mutual fund namely Batavia Proteksi Syariah Mataram.

From the data showed in PT Kustodian Sentral Efek Indonesia website today, the mutual fund is assisted by PT Bank Permata Tbk as its custodian.

Protected mutual fund is an investment product have debt instrument as the main portfolio, and the investment fund locked in a targeted time so it covered the fund from market volatility risk.

The fund will make the asset under management stays in the same value and give a certain coupon that can be enjoyed by the investor as an investment return.

Last month, the investment management managed IDR5.84 trillion fund in mutual fund scheme. The company had it asset under management decline until yesterday to IDR5.17 trillion, mainly because of the downturn of its value.

The company's data from The Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) shows that the unit of its mutual funds still grow from 4.67 billion unit to 4.79 billion unit in the same period.

Right now the company have managed around 54 mutual fund, mostly from protected fund type.

Aqua distribute dividends IDR1.800

BI/bursa

11/6/2010

Irvin Avriano A.

Bisnis Indonesia

Aqua distribute dividends IDR1.800

JAKARTA: PT Aqua Golden Mississippi Tbk, holder of Aqua mineral bottled water brand, distribute dividends of IDR1.800 per share or a total of IDR23.69 billion. The number of dividend represents 24.7% of total company booked net profit of IDR95.91 billion last year.

Aqua President Director Parmaningsih said beside dividend, the company has also allocated funds amounting to IDR72.22 billion of net income as retained earnings.

"We budgeted a bigger retained earnings [than dividends] from our income because we usually start to purchase imported stuff, usually when the prices are low, usually for packaging production," she said to reporters after an annual general meetings of shareholders (AGM) today.

She stated the company is optimistic the company net income in 2010 can be increased by 12.75% from IDR2.73 trillion a year ago to IDR3.08 trillion. The achievement, she said, due to high consumer interest factors caused by the growth of the Indonesian population that continues to happen.

According to her, in addition to these factors are large production capacity is also one cause that make the company optimistic to set-up the revenue target.

Increased sales figures were synchronized with the volume of water sold in quantity, which targeted to increase by 10.31% this year from 6.57 billion liters last year to 7.25 billion liters.

As a result, gross profit increased by issuers that are also pegged at 13.99% this year to IDR190,.31 billion compared with last year's position of IDR166.95 billion.

In the 1Q/2010, Aqua net income booked at IDR705.42 billion level, growing 14.73% compared with same period last year worth IDR614.86 billion.

Director & Corporate Secretary Theresia Lianawaty Setionegoro added in AGM which was held today, the company pocketed shareholder approval to replace one of the directors, Burhan Sutanto whose replaced by Bastian Willy Matheus Tannizar.

The AGM also agreed to give authority to its directors to declare changes in the composition of share ownership.

"Change is there because at the end of last year our major shareholder, PT Tirta Investama, buying shares from public investors."

Company's stock price that is not liquid was still peg on IDR244.800 per share and stock capitalization company formed at the level of IDR3.22 trillion. The company's shares that coded AQUA last traded at that price level on June 4th, 2009.

Right now the company still intend to de-list it shares from the market and want to become a private company (go-private).

Pefindo upgraded Bank Jabar Banten rating to AA-

BI/bursa

11/6/2010

Irvin Avriano A.

Bisnis Indonesia

Pefindo upgraded Bank Jabar Banten rating to AA-

JAKARTA: PT Pemeringkat Efek Indonesi (pefindo) upgraded PT Bank Jabar Banten's V/2006 and VI/2009 bond-corporate rating from idA+ level to idAA- level yesterday. The rating outlook peg at stable level.

Based on pefindo research that released yesterday, the upgrading action taken due to shareholder strong support to the bond emitter, upgraded bank's market position, its strong capitalization profile, and also because of the company's good asset quality indicator.

"But the ratings is also constrained with relatively high level NPL ratio in corporate segment and tightening competition in banking industry," said Pefindo Analyst Hendro Utomo in the research.

The bank which established in 1961 now became the largest regional development bank (Bank Pembangunan Daerah/BPD) in the country.

The bank performace is supported by 2.126 employees from 275 offices, which are mostly located in West Java and Banten areas. Per December 2009, 80,5% of the bank shares was owned by West Java Regional Government and as much as 19,5% by Banten Regional Government.

The company still in the process to list their shares in the capital market this year. The document has been submitted to the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) earlier last month. This action is third attemp to IPO-ing their shares.

The company is assisted by PT CIMB Securities Indonesia and PT Bahana Securities as the underwriter. The company also plan to issue another bond this year worth IDR2 trillion.

Indonesia Stock Exchange (IDX/Bursa Efek Indonesia) noted the provisional bank still have bond obligation worth IDR1.75 trillion. Those bonds divided in two series, V/2006 worth IDR1 trillion which will mature in 2011 and VI/2009 worth IDR750 billion that will mature in 2012 and 2014.

SMART parent company committed indisciplined

BI/bursa

Irvin Avriano A.

Bisnis Indonesia

SMART parent company committed indisciplined

JAKARTA: Golden Agri-Resources Ltd, one of a Sinar Mas Group company and also the world’s second-biggest palm oil producer, said a manager at its subsidiary PT Sinar Mas Agro Resources and Technology Tbk (SMART) has been suspended.

Bloomberg reported that suspended related with the failure of the person for being not comply with 'Standard Operating Procedures relating to planting oil palm trees on peat land'.

The company's palm oil plantation is located in West Kalimantan, Indonesia. Golden Agri-Resources is a publicly listed company in Singapore bourse, while SMART listed in Indonesia Stock Exchange (IDX/PT Bursa Efek Indonesia).

The news are related with the earlier oil palm contract termination from the Sinar Mas Group's SMART with Unilever and Nestle. The termination itself related with the demonstration that held by Greenpeace activist after the NGO find a proof that the company have not comply with natural environment reservation program.

Abiprayadi leads APRDI again

BI / exchange

10/06/2010

Irvin Avriano A.

Bisnis Indonesia

Abiprayadi leads APRDI again

JAKARTA: Abiprayadi Riyanto leads again the Indonesian Association of Mutual Funds (Asosiasi Pengelola Reksa Dana Indonesia/APRDI).

The approvement happen through the merger of two chairman candidate that been done in the extraordinary general meeting of members (rapat umum anggota luar biasa/RUALB) yesterday. The other candidate for the position is Bowo Witjaksono Suhardjo.

"Essentially, there is concern to keep the industry does not split-up, about 90% of our programs have equal points. Finally, suggested by our friends, we met and we decided to merge, you can say it is a collaboration," said Abiprayadi to Bisnis yesterday.

He promised APRDI in the future will be more open to new members and to other industry players, so it will help the industry development. Most likely, he said, the association will change its name to the association of investment managers and mutual funds.

On the same occasion Bowo acknowledge some market participants admitted disappointment over the collaboration decision in the last moments and still wanted the election. However, he said, there is no compulsion in the collaboration and the goal only for the interests of the mutual fund industry and investment management.

Abiprayadi currently serves as PT Mandiri Manajer Investasi president director, while Bowo still serve as PT Recapital Asset Management president director. (Bisnis/IAA)